Albemarle Investor Day

Potential - at Albemarle, it drives everything we do.

March 16, 2017

Proprietary Information of Albemarle Corporation Welcome & Opening Remarks Matt Juneau, EVP Corporate Strategy & IR

Proprietary Information of Albemarle Corporation Forward-Looking Statements

Some of the information presented in this presentation and the conference call and discussions that follow, including, without limitation, product development, changes in productivity, market trends, price, expected growth and earnings, input costs, surcharges, tax rates, stock repurchases, dividends, cash flow generation, costs and cost synergies, portfolio diversification, economic trends, outlook and all other information relating to matters that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ materially.

Factors that could cause actual results to differ materially include, without limitation: changes in economic and business conditions; changes in financial and operating performance of our major customers and industries and markets served by us; the timing of orders received from customers; the gain or loss of significant customers; competition from other manufacturers; changes in the demand for our products; limitations or prohibitions on the manufacture and sale of our products; availability of raw materials; changes in the cost of raw materials and energy; changes in our markets in general; fluctuations in foreign currencies; changes in laws and government regulation impacting our operations or our products; the occurrence of regulatory proceedings, claims or litigation; the occurrence of cyber security breaches, terrorist attacks, industrial accidents, natural disasters, or climate change; the inability to maintain current levels of product or premises liability insurance or the denial of such coverage; political unrest affecting the global economy; political instability affecting our manufacturing operations or joint ventures; changes in accounting standards; the inability to achieve results from our global manufacturing cost reduction initiatives as well as our ongoing continuous improvement and rationalization programs; changes in the jurisdictional mix of our earnings and changes in tax laws and rates; changes in monetary policies, inflation or interest rates; volatility and substantial uncertainties in the debt and equity markets; technology or intellectual property infringement; decisions we may make in the future; the ability to successfully execute, operate and integrate acquisitions and divestitures, and realize estimated synergies; and the other factors detailed from time to time in the reports we file with the SEC, including those described under "Risk Factors" in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date of this presentation. We assume no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

Proprietary Information of Albemarle Corporation 3 Non-GAAP Financial Measures

It should be noted that adjusted net income attributable to Albemarle Corporation (“adjusted earnings”), adjusted net income from continuing operations, adjusted diluted earnings per share attributable to Albemarle Corporation, adjusted diluted earnings per share from continuing operations, adjusted effective income tax rates, segment operating profit, segment income, pro-forma net sales, net sales excluding the impact of foreign exchange translation ("ex FX"), EBITDA, adjusted EBITDA, adjusted EBITDA by operating segment, EBITDA margin, adjusted EBITDA margin, pro-forma adjusted EBITDA, pro-forma adjusted EBITDA margin, adjusted EBITDA excluding the impact of foreign exchange translation ("ex FX"), adjusted EBITDA margin excluding the impact of foreign exchange translation ("ex FX"), net debt to adjusted EBITDA, gross debt to adjusted EBITDA, free cash flow, and adjusted free cash flow are financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States, or GAAP. These measures are presented here to provide additional useful measurements to review our operations, provide transparency to investors and enable period-to-period comparability of financial performance. The Company’s chief operating decision maker uses these measures to assess the ongoing performance of the Company and its segments, as well as for business and enterprise planning purposes.

A description of these and other non-GAAP financial measures that we use to evaluate our operations and financial performance, and reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, can be found in the Appendix to this presentation, which is posted in the Investors section of our website at www.albemarle.com, under “Non-GAAP Reconciliations” under “Financials.” The Company does not provide a reconciliation of forward looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the Company is unable to estimate significant non- recurring or unusual items without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the Company's results calculated in accordance with GAAP.

Proprietary Information of Albemarle Corporation 4 Agenda

Welcome & Opening Remarks Matt Juneau, EVP – Corporate Strategy & IR 8:30 AM

Company Direction & Strategy Luke Kissam, Chairman & CEO

Lithium & Advanced Materials John Mitchell, President 9:00 AM

Q&A Kissam, Tozier & Mitchell 9:45 AM

BREAK 10:00 AM

Bromine Specialties Raphael Crawford, President 10:15 AM

Refining Solutions Silvio Ghyoot, President 10:45 AM

Financial Overview Scott Tozier, EVP & CFO 11:15 AM

Closing Remarks Luke Kissam, Chairman & CEO

Q&A All 11:45 AM

Leadership Luncheon 12:30 PM

Proprietary Information of Albemarle Corporation 5 Company Direction & Strategy Luke Kissam, Chairman & CEO

Proprietary Information of Albemarle Corporation Albemarle Snapshot

2016 Financial Highlights Founded 1887 Net Sales $2.7B Global Employees ~5,000 Adj. EBITDA Margin4,5 28% Countries1 ~100 Adj. EPS4,5 $3.57 2 Dividend Yield 1.3% Adj. Free Cash Flow4 $672M 3 Market Cap $11.5B 2016 Net Sales by Segment

7% Lithium & Adv. Materials

36% Providing innovative solutions to power 30% Refining Solutions the potential of energy efficiency Bromine Specialties

27% All Other

1 Based on destinations of FY2016 product sales. 2 Closing price as of Mar. 9, 2017; annualized dividend announced Feb. 23, 2017. 3 Closing price as of Mar. 9, 2017; diluted shares outstanding as of Dec. 31, 2016. 4 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. 5 Continuing operations only. Proprietary Information of Albemarle Corporation 7 Building a Track Record of Execution: 2016 in Review

What We Said What We Did Status Lithium: Double digit growth +34% Refining Solutions: High single +21% GBU Adjusted EBITDA digit growth Bromine: Down to flat +2% Adjusted $550 - $650M $672M Free Cash Flow1,2

Rockwood Integration Synergy goal of $120M $150M

Net Debt to 2.5x by end of 2017 0.2x as of 12/31/16 Adjusted EBITDA1,3

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. 2 Adjusted Free Cash Flow includes discontinued operations (Chemetall®) in the amount of approximately $175M in FY2016. 3 Based on bank covenant definition. Proprietary Information of Albemarle Corporation 8 What You’ll Hear Today…

1 Our multi-year journey has resulted in a more focused and growth-oriented company 2 Core businesses have sustainable, competitive advantages and high barriers to entry 3 Active portfolio management, with each business currently having an important role in our strategy 4 Strong balance sheet supported by consistent and robust cash from operations 5 Disciplined capital allocation with focus on highest return: reinvestment, strategic acquisitions and returns to shareholders 6 Experienced, committed and focused management team

Well-Positioned Today and for the Long-Term

Proprietary Information of Albemarle Corporation 9 A Look Back: Our Pivot to Growth 1996 2006 2016

Formed Jordan Acquired Akzo Nobel Acquired Rockwood (‘15) Acquired Jiangxi Jiangli New Materials (‘16) Bromine Co. JV (‘98) N.V.’s refinery catalyst Entered high growth lithium Chinese lithium conversion Established global business (’04) market capacity leadership position Expanded catalyst Finalized pumping permit business into refining and quota amendment in Chile (‘16) Advanced lithium growth strategy

Divested AOX (‘14) and Divested Minerals, Metal Sulfides and Chemetall® exited Phosphorus (‘12) Surface Treatment (‘16) business Used proceeds to reduce Non-core assets debt and strengthen balance sheet

Bold and Deliberate Steps Toward Growth

Proprietary Information of Albemarle Corporation 10 Strong Global Footprint with Diverse Revenue and Resource Base

% of Revenue (FY2016) 31% 32% EMEA North America 35% Best-in-Class Resources Asia Global Headquarters Manufacturing Manufacturing/Sales/R&D Sales Administration 2% RoW

Proprietary Information of Albemarle Corporation 11 Experienced and Focused Leadership Team

200+ Years Combined Industry Experience Luke Kissam Chairman & CEO Joined Albemarle: 2003

John Mitchell Raphael Crawford Silvio Ghyoot Scott Tozier Karen Narwold Matt Juneau Ron Zumstein President, President, President, EVP & CFO EVP & CAO EVP, SVP, Lithium & Bromine Refining 2011 2010 Corporate Operational Advanced Specialties Solutions Strategy & IR Excellence Materials 2012 1990 1982 1987 2011

Proprietary Information of Albemarle Corporation 12 Leadership Across Businesses Is Driven By Core Strengths

Lithium & Advanced Materials (LAM) Refining Bromine Lithium PCS1 Solutions Specialties

Global Ranking #1 #1/2 #1/2 #1/2

Industry Growth 2.0 – 3.0x 1.0 – 1.5x 1.0 – 1.5x ~1.0x (Relative to GDP)

Key Competitors

Diversity and Quality of Resources; Product Leading Technology; Diverse Portfolio; Processing and Stewardship; Application Diversity and Quality Advantages Application Expertise; Customer Expertise; Customer of Resources Customer Relationships Relationships Relationships

1 PCS segment also includes Curatives. Proprietary Information of Albemarle Corporation 13 Our Business Model Is a Competitive Differentiator Leading Strengths High Barriers to Entry

• Industry-leading talent with a • Access to geographically diverse, culture of execution low cost reserves in bromine and • Extensive product applications lithium Combination knowledge with solutions-based Yields A • Deep, long-term customer approach Differentiated, relationships • Operational excellence Hard-to • Extensive process technology Replicate and application expertise • Portfolio Management Approach • Integrated operations drive low • Strong balance sheet bolstered by cost position strong free cash flow, creating maximum flexibility • Extensive global asset footprint

Low Cost Resources Combined with Process and Applications Expertise and Deep Customer Relationships Create Significant Value for Customers and Shareholders

Proprietary Information of Albemarle Corporation 14 A Focused Strategy

Invest in Lithium to meet market demand • Capture 50% of market growth

Grow Strengthen and grow Refining Solutions • Bolster product offerings product portfolio

Make the most of Bromine and other mature • Generate cash, maintain adjusted EBITDA1 businesses level and margin1 Build on manufacturing excellence and integration • Drive higher cash flow and margins, and

Maximize successes to drive further efficiencies lower operating costs

Active and continuous assessment of our portfolio of businesses • Businesses should contribute meaningfully Opportunities to accelerate and strengthen our to the execution of our strategy Assess strategy

• Fund high return projects, pursue Maintain a disciplined approach to capital disciplined M&A and return cash to allocation

Invest shareholders

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 15 The Path to Achieve Growth

2016 2021

Diversified Lithium Wave I: Expand battery grade • 165,000 MT LCE annual capacity lithium salt capacity specialty • New Lithium resource in development chemical Lithium Wave II: Develop new lithium with goal of mid-2020s production company with resources • Stronger overall product portfolio strong free cash offering in refinery catalyst flow1 to fund Refining Solutions: Strengthen and expand • Strong free cash flow1 to reinvest in growth growth businesses Mature Businesses: Generate strong free • Ability to sustain margins in mature cash flow businesses

Supported by Productivity and CORPORATE GOALS Operational Excellence Sales Growth: 7-10% annualized Adj. EBITDA Margins1: 32 – 35%

Every Part of the Portfolio Contributes to the Strategy 1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 16 Albemarle Is Well Positioned to Maximize Long-Term Shareholder Value Creation

1 Multi-year journey has resulted in a more focused and growth-oriented portfolio underpinned by energy efficiency macro drivers

2 Clearly articulated and well-understood strategy with the people, free cash flow and additional resources necessary to implement the strategy

3 Experienced and focused management team with clear deliverables

4 Actively managing our portfolio in a disciplined and focused manner to drive shareholder value

5 Strong balance sheet and disciplined approach to capital allocation with focus on highest return: reinvestment, strategic acquisitions and returns to shareholders

Proprietary Information of Albemarle Corporation 17 Lithium & Advanced Materials John Mitchell, President

Proprietary Information of Albemarle Corporation Lithium & Advanced Materials Snapshot

2016 Financials Characteristics

Net Sales $968M • Strong growth story Adj. EBITDA1 $363M • Performance products with high value-in-use Adj. EBITDA Margin1 38% • Sophisticated technical and operational expertise • Sustainable low cost position with scale

Lithium Performance Catalysts Solutions (PCS) • Inorganic salts • Organometallics • Primary and Secondary metals • Catalysts and components • Organometallics • Curatives • Specialties

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures.

Proprietary Information of Albemarle Corporation 19 Performance Catalysts Solutions (PCS) Franchise Snapshot

2016 Financials Characteristics

Net Sales $299M • Performance and specialty products Adj. EBITDA1 $78M • Tailor-made solutions for customers Adj. EBITDA Margin1 26% • Safety, scale and technical service • Low cost position globally

Applications Business Environment • Polymers • GDP+ growth driven by plastics • Eco-tires • Capacity oversupply for aluminum organometallics • Pharma Synthesis • Competitive pricing environment • AG Chem Synthesis • Coatings

Industry-leading Catalyst Solutions Built on Our Decades of Experience and Expertise in the Field

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures.

Proprietary Information of Albemarle Corporation 20 Lithium Franchise Snapshot

2016 Financials Characteristics

Net Sales $669M • Mining and specialty chemicals capability Adj. EBITDA1 $286M • Vertically integrated from natural resource to specialty performance products Adj. EBITDA Margin1 43% • Low cost position globally

Applications Business Environment • Energy storage (Batteries) • Volume growth driven by energy storage • Glasses and Ceramics • Public policy accelerating e-mobility / renewables • Greases and Lubricants • Battery cost declining / performance improving • Pharmaceutical Synthesis • Long-term supply agreements becoming industry • Polyolefins and Elastomers standard

Best-In-Class Resources Coupled with Derivatives Expertise Are Differentiators

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures.

Proprietary Information of Albemarle Corporation 21 What You’ll Hear Today…

1 Growth  Double digit growth due to energy storage Story:  Mid-term supply keeping up with demand  Integrated business model that supports disciplined growth and investment

2 Performance  Performance products are tailored to our customer specifications Products:  Innovation efforts will lead to next generation performance materials  Working with customers to ensure value-in-use remains high

3 Sustainable  Strong natural resources, derivatives assets and technical innovation Position:  Focused on maintaining low cost position

4 Operational  Large scale project execution experience Excellence:  Centers of technical excellence with focus on process fundamentals  Safe, reliable and sustainable mining and manufacturing practices

Proprietary Information of Albemarle Corporation 22 Capabilities and Organization Aligned to Execute

Resources • Exploration – brine and hard rock (spodumene) • Mining operations

Upstream Performance Products • Lithium salts – carbonate, hydroxide and chloride • Primary and advanced metal products

Downstream Performance Products • Organometallics • Specialties

Proprietary Information of Albemarle Corporation 23 Access to Diversified Lithium Resources

Brines Minerals Recycling Pumped from Salars Mining of Spodumene Battery Materials

Salar de Atacama, Chile Greenbushes, Australia Demonstrated feasibility (Production) (Production) on pilot scale Clayton Valley, U.S.A. King’s Mountain, U.S.A. Commercial viability likely (Production) (Exploration) >10 years away

Antofalla, Argentina (Exploration)

Proprietary Information of Albemarle Corporation 24 World-class Lithium Resources in Production

Salar de Atacama, Chile Clayton Valley, U.S.A. Greenbushes, Australia

• Largest active lithium brine resource • First operational brine resource globally • Largest hard rock reserve globally • Only operating lithium mine in North • Largest active hard rock lithium mine • Highest lithium chloride (LiCl) America concentration • Best ore quality globally: 2.8% lithium • Established infrastructure but small oxide (Li O) • Highest evaporation rates scale 2 • Low iron content for TG market • Favorable brine chemistry • Can be expanded to 160,000 MT per year

Proprietary Information of Albemarle Corporation 25

World-class Lithium Resources in Exploration

Antofalla, Argentina Kings Mountain, U.S.A.

• Greenfield brine project • Large reserve 380k MT LCE

• Largest known lithium resource in Argentina • Second best ore quality globally: 1.8 - 2.0%

• $60 million already invested in exploration lithium oxide (Li2O) (prior to signing of option by Albemarle) • Inactive hard rock mine since mid-1980s • Capable of supporting world-scale derivatives

plant

Proprietary Information of Albemarle Corporation 26 Lithium Resources Owned but Not in Active Development

Magnolia, U.S.A. Salares 7, Chile

• Active bromine mine operation • Greenfield brine project

• Unique to Albemarle • Early stage exploration • By-product brine from bromine operation • Part of Talison joint venture • Existing infrastructure • No mining cost • Positive results for lithium and potassium

Proprietary Information of Albemarle Corporation 27

Upstream Capacity in Production

Salts & Metal & Salts

Chloride Salts Chloride

Lithium Hydroxide LithiumHydroxide

Lithium Carbonate & & LithiumCarbonate

La Negra, Chile Kings Mountain, NC, U.S.A.

Hydroxide Hydroxide Salts

Lithium Carbonate & & LithiumCarbonate Lithium Carbonate Salts LithiumCarbonate Silver Peak, NV, U.S.A. Xinyu, China & Chengdu, China (assets acquired from Jiangxi Jiangli New Materials) Proprietary Information of Albemarle Corporation 28 Upstream Capacity Expansions Underway

Battery Grade Lithium Carbonate Battery Grade Lithium Hydroxide

(Li2CO3) Plants (LiOH) Plants

• La Negra, Chile • Xinyu, China • Low cost, high quality battery grade material • Low cost, high quality battery grade material • Brine supplied from Atacama mining operations • Spodumene concentrate supplied from • Expanding to >80,000 MT LCE Greenbushes • Adding 20 - 25,000 MT LCE, resulting in 35 – 40,000 MT LCE capacity in China Total Planned Conversion Capacity Reaches 165,000 MT LCE by Early 2020’s With the Addition of a 40,000 MT LCE Greenfield Battery Grade Lithium Salts Plant

Proprietary Information of Albemarle Corporation 29 Downstream Capacity in Production

Langelsheim, Germany Taichung, Taiwan New Johnsonville, USA

• Largest lithium downstream • Butyllithium • Butyllithium production site in the world • Specialties • Butyllithium

• Specialties • Special metal products

Proprietary Information of Albemarle Corporation 30 Optimizing Value Across Lithium Supply Chain

Resources Upstream Downstream Performance Performance Products Products

Brine Brine Brine Organo- Mining Upgrading Concentrate metallics Advanced Metal Salts Technical Grade Specialties Concentrate Hard Rock Ore Mining Upgrading Technical Advanced Grade Salts Metal Conversion Grade Ore

Value Generation Requires Much More Than Mining

Proprietary Information of Albemarle Corporation 31 Ability to Produce Value-added Lithium Derivatives is Unmatched

Li- Li-tri Chromate Li-Acetylide (t-butoxy)- Resources alanate Phenyl- Li-Tetra- LDA Li- Upstream lithium borate Alanate Methyl- LHS Downstream LiBOB lithium Li- Li- Li- Hydride Amide Silicate Butyl- Li- lithium Perchlorate Li- Li- Li-t- Li- Lithium Li- Phosphate Iodide Butoxide Methoxide Metal Nitride Li- Sabalith Li- Nitrate Fluoride Foils Li- Lithium Li- Salicylate Li- Chloride Zeolite Li- Bromide Sulphate Li- Anodes Lithium Citrate Carbonate

Li- Li- Benzoate Peroxide • Ability to tailor specifications Potash Li- Lithium Ores Brines Acetate Hydroxide (Spodumene) • Performance and quality continue to Bischofite evolve CO2- Absorption Products

Proprietary Information of Albemarle Corporation 32 Uniquely Positioned to be a Preferred Lithium Partner

Core Strengths

Long-term Experience  Industry pioneers Differentiation  100 years in lithium Industry Knowledge  Industry commitment  Largest industry reserve Access to Highest-Quality  Best ore grade and cost Resources  Diversity  Contracted demand Customer Relationships  Stable commercial terms Long-term Agreements  Collaboration on products Extensive Derivatives  Unmatched global footprint Expertise and Operations  Expansion ability in midterm  Continuous improvement Capability Strong Margins with Ability  Economies of scale to Reinvest  Low cost production Ability to Develop Tailor-  Enabled by long-term customer relations made Performance  Differentiated, evolving and  Efficiency breakthroughs Products comprehensive products Science and Engineering  Lithium processes Breadth and Depth  New products and applications

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 33 Macro Trends Driving Long-Term Lithium Growth Opportunity

• Battery performance, cost and safety Salts Mobility • Demand for mobile devices and tools Electrolyte Additives • Electrification of transportation Metal

• Power grid efficiency and renewable use Salts Energy • Weight reduction in aerospace and large Metal Efficiency format transport (metals and plastics) Organometallics • Friction reduction (grease and eco-tires)

• Aging population Salts Health • Pharmaceutical synthesis Specialties • Increased respiratory distress and illness

Lithium is a Key Enabler to Solving Global Issues

Proprietary Information of Albemarle Corporation 34 Battery Markets Continue to Accelerate

Consumer Products CAGR (2016-21): ~8% LCE Content: < 0.1 kgs

Transportation CAGR (2016-21): 30 – 35 % LCE Content: 40 – 100 kgs Battery Grid Storage CAGR (2016-21): > 40% Market LCE Content: > 1,000 kgs Expectations

Source: Based on Internal Albemarle Demand Model and third-party data

Proprietary Information of Albemarle Corporation 35 Li-Ion Batteries Enabled Consumer Product Innovation

Smartphones | Tablets | Laptops | Wearables | Power tools

1992 2003 2007 1st Mass Cell phones iPhone Produced Li- become debuts Ion Battery mainstream Cell

In 5 years, Li-Ion batteries went from a niche end-use to the #1 consuming market for Lithium with explosive growth from consumer electronics and expansion into additional consumer devices: power tools, lawn and garden equipment, forklifts, golf carts, etc…

Future Growth Driven by Expanded Use of Batteries in Numerous Consumer Devices

Proprietary Information of Albemarle Corporation 36 Battery Electric Vehicles Value Chain Enabled by Lithium

Performance Battery Battery Battery OEM’s

Products Components Cells Packs

Product Li Carbonate Cathode, Anode, Cylindrical, xEV, PEV, BEV, PHEV,

Examples Li Hydroxide Electrolyte Pouch, Prismatic ESS, CE HEV

ALB Umicore Panasonic BYD BMW SQM Nichia Samsung Lishen VW Tianqi SMM LG Chem ATL Nissan Tesla

Supplier GM Examples

Proprietary Information of Albemarle Corporation 37 Lithium Use Grows with Automotive Technology Evolution

Conventional Internal Drive Internal Combustion Combustion Transmission ICE Shaft Engine Power flow Engine

Internal Combustion Clutch (Plug-in) Hybrid Electric Engine Drive Transmission PHEV Parallel Power flow Shaft (Toyota Prius) Lithium Electric Clutch Clutch Battery Motor

Extend Range Electric Internal Electric Lithium Electric PHEV Series Power flow Transmission (Chevrolet Volt, Combustion Generator Battery Motor BMW i8) Engine

Battery Electric Lithium Electric BEV Vehicle Transmission (Tesla, GM Bolt) Battery Motor

Proprietary Information of Albemarle Corporation 38 New EV Model Launches Gain Momentum

• Over 100,000 EV/PHEVs sold in 2016, 6 new models on the market

• Converting all models to electric drive trains over the next decade

• Launched Chevy Bolt – range of 238 miles at $30k price point

• Full electric vehicle in 2019, and 1 million electrified cars by 2025

• Tesla SX3 - 500,000 vehicles produced annually by 2018

• Ford to invest $4.5B in EVs to introduce 13 new models by 2025

• 40% of VW’s fleet to be electrified by 2025, plus $2B on infrastructure

Proprietary Information of Albemarle Corporation 39 The Future of Grid Storage

Mortenson (2016), Energy Storage Association Annual Conference and Expo

Grid Storage Likely to Drive Second Wave of Growth Beyond 2021

Proprietary Information of Albemarle Corporation 40 Continued Declines in Lithium Ion Battery Costs Expected, Enabling Innovation

• According to automaker Tesla, lithium ion battery costs declining to that of an internal combustion engine ($100/KWh) is “…achievable by 2025”

• Today, lithium represents less than 3% of the cost of a lithium ion battery

Source: Bloomberg New Energy Finance Summit (April 2016)

Proprietary Information of Albemarle Corporation 41 New Battery Materials Will Involve Lithium

Considerations Driving Continued Innovation Battery Type Market Share in Transportation in Battery Design: • Safety • Cost • Power • Durability

• Energy Density Source: Lux Research 2016 Report

No Disruptive Non-Lithium Energy Storage Technologies on the Horizon

Proprietary Information of Albemarle Corporation 42 Lithium Market Demand in 2016

2016 Global LCE Demand: 190,000 MT

Other (23%) Energy Storage (41%) Includes: Grease & Lubricants (11%) • Consumer Products • Transportation • Grid Storage Glass & Ceramics (24%)

Source: Based on Internal Albemarle Demand Model and third-party data Growth of 15-20,000 MT LCE in 2016

Proprietary Information of Albemarle Corporation 43 Demand Forecast Raised due to Faster BEV/PHEV Penetration

Forecast Drivers 400 Thousands LCE in Metric tons • BEV / PHEV penetration rate forecast 350 • New EV model launches 300 • Battery size / energy density Automotive requirements increasing 250

Penetration Rate Assumptions and 200 Grid Storage Corresponding LCE Demand (thousands MT) Portable Batteries 150 BEV BEV PHEV PHEV Pen. MT Pen. MT Year Rate LCE Rate LCE 100 Other Applications Lubes & Greases 2016 0.6% 21 0.4% 4 50 Ceramic & Glass 2021 2.3% 111 2.7% 30 Source: Based on Internal Albemarle Demand Model and third-party data - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Modeling Demand Growth of 35,000 MT LCE Annually Through 2021 up from 20,000 MT LCE through 2020

Proprietary Information of Albemarle Corporation 44 Our Strategic Focus Gives Our Partners an Advantage

Focus on Low Cost and Expanding Capacity for Develop High Quality and Reliable Production Long-term Partners Innovative Products

Diversified resource position Maintain 70-80% volume under Tailored performance products Process design expertise long-term contracts High value-in-use Scale and efficiency World class governance Quality and consistency Operational excellence Safe and sustainable operations Next generation development Delivering on promises Disciplined investment Best Natural Resources, Strength in Mining and Breadth of Portfolio Drive World-Class Performance

Proprietary Information of Albemarle Corporation 45 Albemarle Resources – High Concentration and Much More

Lithium Concentrate in Brine 2,000 1,600 • Chemical composition 1,200 ppm • Hydrogeology 800 400 • Climate

- Atacama Silver Peak Other Brine Sources (ALB Li & SQM) (ALB Li) • Infrastructure • Utility requirements 4.0 Lithium Oxide (Li2O) Concentration in Hardrock • Environmental 3.0 2.8% • Social responsibility % 2.0 1.9% • Mine scale 1.0 • Reserve size - ALB ALB Other Rock Sources Greenbushes Kings Mt. Source: Combination of internal and third-party data Proprietary Information of Albemarle Corporation 46 Global Brine Resource Comparison (Note Log Scale)

2000 Bubble Size = Estimated Reserves Albemarle Resources

1500 Atacama, Chile

Maricunga

1000 Olaroz Salinas Grandes Hombre Muerto (ppm Li) (ppm Sal de Vida Cauchari Lake Zabuye

500 Ratones Mariana Rincón

Lithium Concentration in Brine Brine in Concentration Lithium Centenario Los Angles Antofalla, Argentina Uyuni Clayton Valley, USA Salares 7, Chile 0 0.10 1.00 10.00 100.00 Resource Estimate (Millions MT of LCE) Source: Combination of internal and third-party data Proprietary Information of Albemarle Corporation 47 Global Hard Rock Resource Comparison

3

Greenbushes

2.5

Greenbushes Expansion Lithium Lithium Oxide 2 Kings Mountain* Houston Lake 1.5 Nemaska James Bay Mt Marion Altura Pilbara 1 Mt Cattlin RB Energy Bubble Size = Estimated Reserves

0.5 Albemarle Resources Lithium content of Ore (% Li2O) (% Oreof content Lithium 0 -2 0 2 4 6 8 10 12 Resource Estimate (Millions MT of LCE)

Source: Combination of internal and third-party data * Based on internal estimates, not NI 43-101 compliant Proprietary Information of Albemarle Corporation 48 It’s Hard Work and Expensive to Bring on New Capacity

Mining Start-up Announce Design • Hiring operations Dealing with Initial Geological Capital Raise • Process design staff Operational Data For Exploration • Capital raise for • Capital raise for Issues • Capital raise for mine derivative plant • Financing feasibility • Long-term Year 0 2 4 6,7 10 customers 1 3 5 8,9 11, 12 Feasibility Mine Construction Analysis • Permits Derivative Plant Complete • Sustainability • Define the ore/ Construction Exploration • Government brine upgrade • Permits negotiations • Product Resource • Community qualifications Identification negotiations

Proprietary Information of Albemarle Corporation 49

Resource Project Status

Announced

Project Commercial Capacity

DFS PILOT FIN CONST PROD Type Owner Project Region Source Commenced Production Thousands MT PFS Galaxy Mt. Cattlin AUS Spod 2007 2017 15.0 NeoMetals Mt Marion AUS Spod 2009 2017 30.0 Mines Pilbara Minerals Pilgangoora AUS Spod 2014 2018 48.0 Only Altura Pilgangoora AUS Spod 2014 2018 13.0 Kidman Earl Grey AUS Spod 2015 - -

Orocobre Olaroz Phase 1 ARG Brine 2007 2016 17.5 Nemaska Whabouchi CAN Spod 2010 2018 27.0 SQM/LAC Cauchari ARG Brine 2009 2019 50.0 Rio Tinto Jadar SBR Jadarite 2009 2020+ 50.0 Enirgi Group Rincon ARG Brine 1989 2018 50.0 COMIBOL Salar de Uyuni BOL Brine 2019 30.0 Orocobre Olaroz Phase 2 ARG Brine 2007 2019 22.5 Integrated Galaxy Resources Salar de Vida ARG Brine 2020+ 25.0 Operations ERAMET Centinario ARG Brine 2010 2018 20.0 Lithium Americas Kings Valley USA Clay 2007 2019 26.0 Bacanora Sonora MEX Clay 2007 2018 35.0 Orocobre Salinas Grandes ARG Brine 2007 2020+ 10.0 Neo Lithium 3Q ARG Brine 2015 2019 - Lithium X Salar Los Angles ARG Brine 2015 2020+ 15.0 Li3 Maricunga CHI Brine 2004 2017 -

Source: Combination of data from Roskill (2016) and Signumbox (2016) Reports PFS = Pre-Feasibility Study DFS = Definitive Feasibility Study PILOT = Pilot FIN = Financing CONST = Construction PROD = Production Proprietary Information of Albemarle Corporation 50 Full Integration and Reliable Supply Chain Set Albemarle Apart

North Resources 5,000 MT America Upstream 10,000 MT Capacity* Downstream 800 MT Success Factors South Resources >80,000 MT America Upstream >44,000 MT Investment discipline Capacity* Project execution Productivity – low cost EMEA Upstream < 5,000 MT Derivative optimization Capacity* Downstream 2,000 MT Technical innovation Tailored products Resources 80,000 MT APAC Upstream 15,000 MT Capacity* Downstream 800 MT

*Resource and Derivative Capacities are Approximates for 2017 Proprietary Information of Albemarle Corporation 51 ALB Targets 165,000 MT LCE Installed Capacity by End of 2021

WAVE I Supply WAVE II Supply Resources Secured Resources 300 Derivative Construction Underway Being Developed

250

200 (Thousands MT) (Thousands

150 165,000 MT LCE

100

50 ALB Supply LCEs in Supply ALB

- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Our Execution Focus….Bring New Capacity Online When Our Customers Need It

Proprietary Information of Albemarle Corporation 52 Announced Plans for Resource and Derivative Capacity

Resource Mining and Upgrading Upstream Products: Salt Derivatives Nameplate Capacity (MT LCE) Nameplate Capacity (MT LCE)

2017 2021 2017 2021

Atacama, CL 44,000 80,000 La Negra CL I, II, III 44,000 80,000 Kings Mountain, US 5,000 5,000 Greenbushes, AU 40,000 80,000 Silver Peak, US 5,000 5,000 Clayton Valley, US 5,000 5,000 Xinyu, CN 10,000 30,000 Total 89,000 165,000 Chengdu, CN 5,000 5,000 To be determined - 40,000 Greenbushes Footnotes • 80,000 MT represents ALB’s 50% volume share Tolling, CN 5,000 TBD • As shown, Upstream Products capacity excludes technical grade spodumene sold as concentrate, the addition of which Total 74,000 165,000 brings total nameplate capacity to 85,000 MT LCE in 2017.

Proprietary Information of Albemarle Corporation 53 Project Execution is Key to Reliable Supply

• Dedicated expertise for each division: 1) Resource, 2) Upstream, 3) Downstream Internal Capabilities • Focused corporate engineering and project execution team • Global execution capabilities: Latin America & APAC

• Engineering, procurement, and construction (EPC) global partner Partners • Unit process technology partners • Governments and communities where we operate

• Pioneers in brine and hard rock – over 100 years Experience • Invented processes for salt derivatives • Several recent derivative and mining expansions

Disciplined Structure • Common global model for execution • Formal investment / project reviews – multiple layers of observation and Approach • Risk mitigation and planning

Proprietary Information of Albemarle Corporation 54 Technical Innovation Leading to New Materials

Customer-Centric Portfolio Development & Innovation Management Implementation

• Classification, identification and • Consideration given to overall fit and • Process design for scale-up and alignment with strategic partners and attractiveness, IP positioning, piloting of new battery materials market dynamics customer pull and competitive in compliance with customer • Develop and strengthen relationships landscape requirements that add long-term value • Safe execution of commercial production

Proprietary Information of Albemarle Corporation 55 Disciplined Focus on Long-Term Partnerships and Investments

Volume Make Innovation Performance Product

Specs

Long-Term Invest / Build Across Sustainable / Agreements Supply Chain Reliable Supply

Collaborative Relationships Volume Added for Contracted Customers More Predictable Planning and Financials

Proprietary Information of Albemarle Corporation 56 2016 Strategy in Action

Atacama resource extended with Chilean Government • Now capable of operating above 80,000 MT LCEs per year until end of 2043 • New commission structure effective Jan. 1, 2017 Greenbushes mining operations ramp-up to utilize tolling capacity • Carbonate and hydroxide tolling established

Antofalla Salar resource option agreement signed • Initial data suggests that the resource could support operating up to 100,000 MT LCE per year

La Negra II battery grade qualified • ~1/3 product capacity ramp-up expected in 2017 Jiangxi Jiangli New Materials (Xinyu and Chengdu assets) acquired • 15,000 MT lithium hydroxide and lithium carbonate capacity acquired with plans to expand by 20,000 - 25,000 MT Success in signing long-term salt supply agreements with key customers • For 2017, greater than 80% of expected production is under long-term agreements

Proprietary Information of Albemarle Corporation 57 Lithium & Advanced Materials – Outlook and Targets

5-Year Division Business Environment Outlook

• Volume growth and price improvement in battery grade applications • New ALB capacity in Chile and China ramping up Lithium • Chile commissions and community agreement now active • LCE supply-demand remains in balance until 2021

• Rebounding from SunEdison bankruptcy PCS • Short-term headwinds due to overcapacity in organometallics • Macro trends in polymer market remain greater than GDP

2016 5-Year Targets

12 - 17% Net Sales (growth target) $968M annual growth

Adj. EBITDA Margin1 38% 38 - 44%

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 58 Lithium & Advanced Materials – Key Takeaways

1 Growth  Double digit growth due to energy storage Story:  Mid-term supply keeping up with demand  Integrated business model that supports disciplined growth and investment

2 Performance  Performance products are tailored to our customer specification Products:  Innovation efforts will lead to next generation performance materials  Working with customers to ensure value-in-use will remain high

3 Sustainable  Strong natural resources, derivative assets and technical innovation Position:  Focused on maintaining low cost position

4 Operational  Large scale project execution experience Excellence:  Centers of technical excellence with focus on process fundamentals  Safe, reliable and sustainable mining and manufacturing practices

Proprietary Information of Albemarle Corporation 59

Bromine Specialties

Raphael Crawford, President

Proprietary Information of Albemarle Corporation Bromine Specialties Snapshot

Financials – FY2016 Characteristics

Net Sales $792M • Mineral extraction and processing • Low-cost position on global cost curve Adj. EBITDA1 $227M • Vertically integrated 1 Adj. EBITDA Margin 29% • Stable and sustainable cash flow

Applications Business Environment

• Flame retardants for electronics • Stable flame retardants demand across and construction materials electronics, construction and automotive

• Completion fluids for oilfield • Current completion fluid weakness due to oil • Industrial water treatment prices, with a favorable and long-term outlook

• Plastic and synthetic rubber • Excess bromine capacity is limited to few • Ag and pharma synthesis suppliers

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Advantaged Position. Stable End Markets. Strong Sustainable Cash Flow.

Proprietary Information of Albemarle Corporation 61 Bromine Specialties: Stabilized, Consistent Performance Net Sales Adjusted EBITDA1 $ in millions $ in millions • Flame Retardants demand peaked in 2011 34% 34% due to TV and PC sales 30% $1,006 30% 29% $345 28% 29% $910 $856 $309 • Clear Completion Fluid $810 $809 $776 $792 demand peaked in 2013 $240 $253 16% $225 $223 $227 (3rd year of $90+ oil $556 prices)

$88 • Earnings have stabilized over past three years

• Expect 2017 results to be consistent with recent past performance Adjusted EBITDA1 Adjusted EBITDA Margin1

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. FY2014 depreciation and amortization (D&A) assumed for FY2009 – FY2013 Pro-forma, Adj. EBITDA due to difficulty created by subsequent reorganization of the GBU. Three Years of Consistency. Expecting Continued Business Performance.

Proprietary Information of Albemarle Corporation 62 Bromine – From Element to Multi-Purpose Additive

Brine Derivatives Plant Source

Fire Drilling Safety Fluids

Bromine Plant Automotive Agriculture & Pharma

PTA / PET Water Catalyst Treatment

Proprietary Information of Albemarle Corporation 63 Bromine Specialties Strategy: Continually Improve to Maximize the Cash Needed to Power the Potential of ALB’s Growth

Reducing costs through Maintain share and achieve Commercial and asset, supply chain and outsized growth in growing Operational Excellence organizational efficiency applications

Lean

Utilization Cost

Maximize the Cumulative Cash Flow of Bromine Business over Strategic Horizon

Proprietary Information of Albemarle Corporation 64 Our Cost Position Begins With Our Advantaged Bromine Reserves

Shandong, China Tokyo, Japan Magnolia, Arkansas Safi, Jordan Albemarle Bromine Gujarat, India Production/Sourcing Other Bromine Production/Sourcing

Bromine Concentration Industrial Cost Curve for Elemental Bromine Dead Sea Concentrate ALB & ICL

Arkansas ALB & CHMT India Concentrate

China

Seawater Relative ProductionCost Relative 0 2000 4000 6000 8000 (ppm) Source: Internal ALB and company public documents Global Capacity, Thousands MT Albemarle Operates from the Two Best Bromine Resources

Proprietary Information of Albemarle Corporation China Elemental Bromine Supply is a Diminishing Threat

30,000 $5,000

$4,000 20,000 $3,000

$2,000 USD/MT)

10,000 ( Volume (MT) Volume $1,000 Import Volume 0 $- Export Volume Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Local Elemental Price

• In 2016, China bromine producers experienced degradation of local brine resources, heavy rains and increased taxation • Supply limitations created upward pressure on price throughout 2016 • Local producers keeping more bromine in China instead of derivatizing and exporting • Anticipate further China capacity decline via resource exploitation and increased regulations • Pricing stability will remain tied to bromine balance within China Source 2016: Internal ALB, published import/export stats, Chinese Bromine index 66 Proprietary Information of Albemarle Corporation We Operate at the Two Best Natural Resources in the World

#1 Jordan Bromine Company (JBC) #2 Plant in Magnolia, Arkansas

Dead Sea

APC Pump Station

APC Ponds • Lowest cost Bromine • Highly integrated JBC Site and world-class site and specialty focused APC Site • JV with Arab Potash • Operate two Company (APC) independent fields (South and West) and • Located on the Safi Township draw bromine from Dead Sea underground reserves ~8,000 feet deep Border Truce Canal • Controlled and operated by Albemarle

Proprietary Information of Albemarle Corporation 67 Integrated Operation Drives Efficiency and Low Cost Operations

Magnolia, Inputs Arkansas Operations Site Final Products • As many as 16 different products can be made from a single stream of bromine and 45% of our production is from recycled or by- product bromides

Proprietary Information of Albemarle Corporation 68 Examples of Productivity Improvements Past and Future

2019: Exploring energy efficiency and further asset optimization. Industry-leading Adjusted EBITDA margins1 and 2017: Lean manufacturing projects. Further co-product FCF1.

integration improvements. Natural gas supply at JBC. $35 Million in annualized productivity and cost avoidance. 2015: Co-product integration 2018: JBC yield improvement project. improvements. Raw material Magnolia and JBC water reduction projects. flexibility at JBC.

2016: JBC waste heat integration project. Gas quality improvements.

2014: Steam use optimization. Electrical utilization improvements at Magnolia. Chlorine technology upgrade. We Have Focused Our Capital on Reliability and Efficiency in the Plants

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures.

Proprietary Information of Albemarle Corporation 69 Macro Trends Drive Our Markets

• Increasing demand for mobility (vehicles, airplanes) • Continued strong demand for cars in developed world and increasing ownership in developing countries

• Despite some near-term volatility, long-term opportunity Add Image exists in oilfield chemicals from rising global offshore exploration and completions

• Increasing server demand Add Image • Increasing electronics required in vehicles • Additional radialization of the tire market in developing world, especially in commercial vehicles

Proprietary Information of Albemarle Corporation 70 Stable Flame Retardants Demand Builds Our Base

World Semi- Previous volatility in three Conductor major markets has stabilized: and GDP Growth • Server demand expected to Source: Prismark. increase 5% over the next 5 years Printed Circuit Report, 3Q16. PC & TV (units) Servers (units) 400M 50M • Electronic enclosures (TV and PC) Electronic 350M 45M 40M 300M Enclosure 35M outlook is flattening out at 1% 250M 30M 200M 25M Drivers 150M 20M CAGR for period of 2017 – 2020 15M 100M 10M 50M Desktop/Laptop TV Servers 5M • Outlook for residential, Sources: - - 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e commercial and industrial IDC, Gartner 3Q16 Reports construction is optimistic Millions of Units U.S. Housing • Builders and contractors expect Starts continued growth in 2017 Source: ConstructConnect™, Jan2017 Forecast

Proprietary Information of Albemarle Corporation 71 Broadest Portfolio of Flame Retardants Protects Our Base

Connectors & Printed Wire Construction & Enclosures Wire & Cable Plastic Parts Boards Insulation Foam

SAYTEX® 8010, SAYTEX® 7010, SAYTEX® CP2000, SAYTEX® 8010, BT-93 SAYTEX® 8010, Products 3010, 621, 8010, 8010, BT-93 BT-93, CP2000, BT-93, RB-79, BT-93 PURshield™, GreenCrest®

High service temp Best thermal stability Products to cover all Highly efficient, non- Sustainable and capabilities, superior available, versatile types of applications migrating and UV- efficient across the electrical Advantage and highly efficient from standard to stable options EPS and XPS foams performance and very specialized as well as HFO- LSOH options blown spray foams

Our Diverse Flame Retardant Offering is a Differentiator 72 Proprietary Information of Albemarle Corporation Automotive: Mobility and Modernization Drive both Flame Retardants and Bromine Growth

Key Drivers • Higher rates of car ownership in developing world (India, China, etc.) • Increasing electronics required in vehicles, such as in Advanced Driver Assistance Systems (ADAS) • Increasing demand for tires and synthetic rubber

Source: IHS ADAS Semiconductor Market Tracker H1 2015 Source: Goodyear company estimates

73 Proprietary Information of Albemarle Corporation Oilfield Chemicals: Expected Recovery in Global Exploration and Completions Offshore Drilling Market has Bottomed Out Recovery on the Horizon • Offshore drilling has declined past 2 years • Growth in offshore investment expected between 2018 • Overall, the market is expected to – 2020; dependent on oil pricing stabilize in 2017 • Significant share of discoveries have been offshore1 BHI Global Offshore Rig Count Global Upstream Investment by Supply Segment

1,000 30% 400 Offshore Deepwater Forecast 20%

Gulf of Mexico 800 Offshore Midwater

300

Middle East 10% Offshore Shelf 600 200 Latin America 0% Oil Sands

400 Rig Rig Count Europe USD Billion -10% Shale/Tight Oil 100 Change % YoY 200 Other Onshore Asia-Pacific -20% Offshore % Change 0 Africa 0 -30% 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1* Onshore % Change 2013 2014 2015 2016 2017 *Quarter Estimate Source: Baker Hughes Source: Rystad Energy February 2017 Offshore Investment to Bottom in 2017 with Expected Recovery in 2018 - 2020

1Nelson, Kerri, et al. “Deepwater Operators Look to New Frontiers.” Offshore, 1 May 2013. Proprietary Information of Albemarle Corporation 74 Mature End Markets Delivering Stable Growth, Niche Applications Emerging

Synthetic Rubber/PET 5-Year Volume CAGR of 2.1% (2016 – 2021) • Urbanization in developing world fuels tire demand growth Clear • Sanitary / bottled water fuels PET growth Flame Completion Synthetic Retardants Fluids Pharma/Ag Rubber/PET Other Clear Completion Fluids 45% 4% • Driven by deep well trend in oil industry

40%

5 Flame Retardants

- Year 35% 3%

30% • Demand for electronics and focus on KT

25% CAGR residential commercial energy efficiency 2% 20% % of of % • Server growth; TV / PC declines slowing 15% 10% 1% • New electronic applications / ‘Internet of 5% Things’ drive electrical and electronics growth 0% 0% Other • Mercury control legislation in US and EU 2016 (540KT) 2021 (600KT) CAGR • New energy/grid storage drives flow batteries

Source: IHS Chemicals and ALB Internal • Food safety standards

Long-term Sustainability Driven by Mature End Markets and Emerging Niche Applications

Proprietary Information of Albemarle Corporation 75 Stable and Positive Outlook for Bromine Specialties

Strategic 5-Year Business Environment Element Outlook

• Expect mature, stable market that will continue to base load and Flame Retardants generate cash for the business

Oilfield Clear • Market has bottomed out and we expect to see incremental growth over Brine Fluids the next five years

Operational • We continue to work on efficiencies to provide higher yield and lower Efficiencies / Lean cost processes that maintain a constant, superior product

2016 5-Year Targets

0 - 2% Net Sales (growth target) $792M annual growth

Adj. EBITDA Margin1 29% 27 - 30%

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 76 Bromine Specialties – Key Takeaways

1 Albemarle Bromine Specialties is generating stable cash flow to power the growth potential of Albemarle

2 We are an industry leader given:  Access to best sources of Bromine in the world  Low cost position with continuous improvement to provide sustainable cash flow in stabilized market going forward  Operational excellence with superior execution of service leads to deep customer relationships, commercial discipline, process excellence as well as benefits to other segments

3 Future efforts to improve operations will maintain industry-leading margins

Proprietary Information of Albemarle Corporation 77 Refining Solutions Silvio Ghyoot, President

Proprietary Information of Albemarle Corporation What You’ll Hear Today…

1 Who we are and what we do in the refining space…  We upgrade oil into clean transportation fuels and propylene  We power clean mobility

2 Well-positioned to benefit from continued growth in demand for transportation fuels – enhanced by tightening fuel specifications and growing prosperity in developing areas

3 Core strengths and solid strategy to build on growth opportunities

Proprietary Information of Albemarle Corporation 79 Refining Solutions Snapshot

Financials – FY2016 Characteristics

• Leading positions in FCC and HPC catalysts Net Sales $732M • Technology and applications knowledge Adj. EBITDA1 $239M • Focused on value creation for refiners • Long-term, collaborative customer relationships Adj. EBITDA Margin1 33% • High barriers-to-entry • Strong free cash flow1 generation with growth

Fluid Cracking Catalysts (FCC) Clean Fuels Technology (CFT)

FCC Catalyst HPC Catalyst • Removes sulfur and contaminants • Cracks oil feedstock • Makes gasoline • Makes clean diesel • Makes propylene • Makes clean oil-feedstock

Alkylation & Isomerization Catalyst • Makes clean high-octane gasoline 1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Leadership in a High Margin Business with High Barriers-to-Entry

Proprietary Information of Albemarle Corporation 80 Refinery Catalysts Convert Crude into Required Products

Average Global Heavy Crude Oil Global Refined Products Demand Products Demand

LPG

Gasoline

KeroseneKerosine

Diesel

Fuel Oil

Heavy Required Light Commercial Aviation Other Petro Other Crude Products Vehicles Vehicles chemical

Catalytic Conversion  Transportation (57%) Other (43%) In Refinery Global Product Demand Cannot be Met Without Catalytic Conversion

Sources: IEA Energy Technology Perspectives 2016 and OPEC, World Oil Outlook 2016

Proprietary Information of Albemarle Corporation 81 Our Catalysts are Critical for the Refining Operation

Gasoline / petrochemicals HPC 83 DISTILLATES Kerosene million Diesel bpd * Reforming, isomerization not shown

Crude Oil Feedstock

Atmospheric VGO HPC Diesel Distillation

Hydrocracking

Propylene HPC Gasoline Diesel FCC Vacuum Distillation RESID Fuel oil

We Offer a Wide Range of Catalysts to Convert Crude Oil into High-Value Products

Proprietary Information of Albemarle Corporation 82 Major Dynamics Accelerating Catalyst Demand

Impact on FCC Consumption Impact on HPC Consumption

Gasoline demand Diesel demand growth growth

Plastics / propylene More stringent fuel demand growth sulfur specifications

Higher crude spread (price delta “Light & Sweet” vs. “Heavy & Sour” crude)

Proprietary Information of Albemarle Corporation 83 Growth Drivers for Catalysts

Growing Future Propylene Fuel sulfur ‘Global Car growth growth also standards Parc’ drives expected drives FCC drive catalyst growth for mainly in Catalyst growth fuels China & Non- growth OECD countries

Proprietary Information of Albemarle Corporation 84 Growing ‘Global Car Parc’ Drives Growth for Fuels

Mobility Growth Crude / Gasoline / Diesel Demand Required Additional Capacity ‘Global Car Parc’ forecasted Growth forecasted for …should trigger additional to increase from 1.2 to 2 crude, gasoline and FCC and HPC catalyst billion by 2030 diesel demand demand (~2.5% CAGR)

Passenger Vehicles Commercial Vehicles Crude, Gasoline and Diesel Expected Incremental Capacity Additions Forecast – by type Forecast – by type Demand Forecast bpd 1.8B 350M 110M 18M 35M bpd 1.6B 300M 16M 1.4B 14M 250M 105M 1.2B 12M 30M 1.0B 200M 10M 100M 0.8B 150M 8M 0.6B 25M 6M 100M 95M 0.4B 4M 50M 0.2B 2M - - 20M 90M - 2015 2020 2025 2030 2015 2020 2025 2030 2015 2020 2025 2030 2020 2025 2030 Gasoline Diesel LPG Hybrids EV / PHEV Gasoline Diesel Crude FCC HPC Sources: ExxonMobil Outlook for Energy 2017, IEA Sources: OPEC, World Oil Outlook 2016, Stratas Sources: OPEC, World Oil Outlook 2016; Energy Technology Perspectives 2016 Advisors (Harts) – Mid Year Review 2016 Management estimates

Proprietary Information of Albemarle Corporation 85 Future Growth Projected in Middle East, India and Asia

Mobility Growth Crude Demand Growth Additional Capacity Required Over 80% of forecasted Crude demand New capacity expected vehicle growth expected to expected to grow only in China, ME, Asia be in non-OECD countries in non-OECD countries and Africa

Passenger Vehicles Commercial Vehicles Forecasted Crude Demand Growth Forecasted Capacity Additions Forecast Forecast 1.8B bpd 2015 - 2030 350M 30% 1.6B 5M 300M 1.4B 25% 1.2B 250M 3M 20% 1.0B 200M 15% 0.8B 150M 1M 0.6B 100M 10% 0.4B (1M) 5% 0.2B 50M - - (3M) 0% 2015 2020 2025 2030 2015202020252030 2015-2020 2020-2025 2025-2030 FCC HPC

OECD China Other non-OECD

Sources: ExxonMobil Outlook for Energy 2017, IEA Sources: OPEC, World Oil Outlook 2016 Sources: OPEC, World Oil Outlook 2016; Oil and Gas Energy Technology Perspectives 2016 Refining Survey 2016 Proprietary Information of Albemarle Corporation 86 Fuel Sulfur Standards Drive Catalyst Growth

Maximum Sulfur Limits in Diesel: 2016 Maximum Sulfur Limits in Diesel: 2020

Source: Stratas Advisors, March 2016 Fuel Sulfur Standards in China and India Reach Parity with US by 2020

Proprietary Information of Albemarle Corporation 87 Propylene Growth Also Drives FCC Catalyst Growth

Global Propylene Demand FCC-Derived Propylene Expected propylene demand FCC-derived propylene CAGR of 4%, mainly driven expected to grow 3.5% by Asian plastics demand through 2025

Propylene Demand FCC Derived Propylene MT / Year Millions MT / Year

160M 140M 120M 100M 80M 60M 40M 20M - 2015 2020 2025

Americas Europe Middle East / India Asia

Sources: IHS, Chemical Economics Handbook Propylene 2015 and IHS Markit 2016 Proprietary Information of Albemarle Corporation 88 Solid Growth Forecasted in FCC and HPC Catalyst Markets

FCC and HPC catalysts represent almost 70% of the overall Refinery Catalysts market, a ~$6.5 billion market

HPC 30% Alkylation 10% FCC Reforming 39% 2% Other 19%

5-year 5-year 5-year FCC Segment CAGR2 HPC Segment CAGR2 Other Segments CAGR2 VGO ~0.5 % Distillates ~2 % Alkylation ~1 %

Resid ~2 % VGO Feedstock ~3 % Reforming ~2 % Max Propylene ~4 % Resid Feedstock ~10 % Other ~1 % FCC Market ~2.5 % HPC market ~5 % Number 1 or Number 2 position in segment

1 Sources:: TCGR Intelligence Report 2015 – 2021 (May 2016); management data 2 2016 – 2021 Focused on Sustaining Strengths and Taking Advantage of Growth Opportunities

Proprietary Information of Albemarle Corporation 89 How We Make the Difference

Core Strengths Differentiation

 Global (Technical) Global Presence sales force Partnerships / JVs  Local impact

Technology and  Deep catalyst Premium Products  Advanced applications expertise know-how Innovation  Proprietary modeling Applications Technology  Performance products

 Long-term customer Deep Customer Value Creation  Providing solutions that relationships that help refiners make Relationships  Joint development Custom Solutions more money programs

World-Class  Efficient  Strong margins manufacturing Operational Excellence  Continuous Manufacturing Assets plants improvement

Proprietary Information of Albemarle Corporation 90 Global Footprint with Extended Reach Through JVs and Partnerships

• Click to edit Master text styles Amsterdam, – Second level Netherlands Plant • Third level

Bayport, U.S.A. Plant – Fourth level » Fifth level

Global Headquarters Regional/Sales Office Manufacturing (Refining Solutions only) Joint Venture (Refining Solutions only) R&D (Refining Solutions only) Shared Services Center Refineries

~65% of the 600+ Worldwide Refineries Use Albemarle Catalysts

Proprietary Information of Albemarle Corporation 91 Close Client Partnerships Create Tailored, Value-Added Solutions

Understanding Start-up / Small Pilot Commercial Customer Technical Scale Scale Scale Challenges Service

• Collaborate • High throughput • Technology • Manufacturing • Introduction at with customers to experimentation scalability excellence customer understand operating • Discovery and • Proprietary • Efficiency • Start-up service constraints and optimization modeling objectives • Unit monitoring • Reformulation (FCC) • Advice for next fills (HPC)

92 Proprietary Information of Albemarle Corporation Continuous Innovation to Meet Customer Specific Needs

FCC HPC • FCC catalysts are tailored to the • Customized unit-fill using our needs of the customer proprietary STAX® technology removes contaminants

FCC Catalyst 1 Zone 1 catalyst Layering & particle Catalyst 2 Eliminating

Contaminants Zone 2

Catalyst 3 Occur Through Zone 3 Catalyst 4 Zones

HPC and FCC Catalysts Are Highly-Engineered Customized Materials

Proprietary Information of Albemarle Corporation 93

HPC Case Study

Customer Request Value Offering HPC Value Creation $35M • Customer requested catalyst $30M for a diesel HPC unit. The offer made by Albemarle satisfied all Added requirements to produce Low $25M Value $ 21 Sulfur Diesel with a certain Created for million base value. $20M Customer Additional • Based on our knowledge of customer’s needs Albemarle production volume offered an alternative solution $15M with an additional value of $21 over catalyst million. The value of the life cycle additional diesel produced in $10M the same unit far outweighed Additional $10 $32 the higher catalyst costs ($5 Catalyst Base value Hydrogen costs versus $4 million) and the $5M costs additional costs for Hydrogen Catalyst $5 Base value ($10 million). $4 costs - Costs Value Costs Value

Customer and Applications Knowledge Drives Value Creation

Proprietary Information of Albemarle Corporation 94 Refining Solutions Strategy: Strengthen and Expand

Build on Our Strengths “Glocalize” Enlarge Portfolio and Reach to extend leadership position to be at the heart of action through innovation and partnering

Value Creation Expand Presence Enhance in Growth Areas Speed of Innovation Innovation and Technology Applications Expertise Localization and Partnerships and Strategic Cooperation Disciplined M&A Solidify Western Baseload with National Oil Companies Bolster Portfolio Extend Segment Leadership

Proprietary Information of Albemarle Corporation 95 Strategy by Segment to Extend Leadership and Drive Growth

Build on Our Strengths “Glocalize” Enlarge Portfolio and Reach to extend leadership position to be at the heart of action through innovation and partnering

• Expand commercial footprint • Resid and max propylene • Partnerships on FCC-derived in growth regions FCC leadership technologies • Performance based growth – • Octane Boost • Next generation catalyst emerging markets

• Local cooperation / • Distillates leadership value addition • Portfolio expansion • Premium products HPC • Structural resource shift – • Optimize global assets, drive • Proprietary STAX® custom aligned with growth low-cost capacity expansion fill opportunity

Proprietary Information of Albemarle Corporation 96 Refining Solutions – Outlook and Targets

5-Year Division Business Environment Outlook

• Increased global mobility in non-OECD countries drives gasoline demand • Global FCC sourced propylene growth in emerging markets FCC • Fuel efficiency standards, tightened sulfur regulations and more tight oil in the USA trigger additional need for higher octane gasoline • Tightening sulfur regulations and increased transportation fuels demand in developing areas HPC • Tightening marine fuels standards from 2020 onwards • Growth in resid hydroprocessing could dilute margins

2016 5-Year Targets

3%+ Net Sales (growth target) $732M annual growth

Adj. EBITDA Margin1 33% 28 - 32%

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 97 Refining Solutions – Key Takeaways

1 Our Refining Solutions business…  Upgrades oil into clean transportation fuels and propylene  Powers clean mobility

2 Well-positioned to benefit from continued growth in demand for transportation fuels – enhanced by tightening fuel specifications and growing prosperity in developing areas

3 Core strengths and solid strategy to build on growth opportunities

Refining Solutions... “A solid contributor to the value of Albemarle today and tomorrow...”

Proprietary Information of Albemarle Corporation 98 Financial Overview Scott Tozier, EVP & CFO

Proprietary Information of Albemarle Corporation What You’ll Hear Today…

1 Continue to execute and invest in opportunities to achieve growth and higher margins

2 Build on operational excellence as an enabler to sustain value

3 Maintain solid, flexible balance sheet, bolstered by consistent, strong cash flow

4 Deploy cash with a balanced, disciplined approach toward reinvestment, strategic M&A and capital returns to shareholders

5 Maximize long-term shareholder value creation

Proprietary Information of Albemarle Corporation 100 Albemarle Financial Performance Summary

Net Sales1 Adj. EBITDA1,2 Adj. FCF1,2 $ in billions $ in billions $ in billions $1.5

$4.0 $1.5

$3.0 $1.0 $1.0

$2.0 $0.5 $0.5 $1.0

- - -

Historical financials Management estimate (‘17E) and target (5yr) ranges Deliberate Transformational Steps Toward Growth

1 Historical financials presented as of year reported, excluding restatements for any subsequent acquisitions and/or divestitures. 2 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 101 Margin Growth Is an Important Value Driver

Historical Adjusted EBITDA Adjusted EBITDA Margins1,2 margin1 growth driven through: 32 - 35% • Acquisitions: high-growth, strong margin businesses 28% 28 - 29% 26% – Rockwood Holdings (2015) 22% 23% • Divestitures: lower-margin, non-core businesses • Manufacturing process excellence

• Rockwood integration and cost FY2013 FY2014 FY2015 FY2016 FY 5 Yr synergies 2017E Target Historical financials Management estimate (‘17E) and target (5yr) ranges

Transformation to Higher Margins

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. 2 Historical financials presented as of year reported, excluding restatements for any subsequent acquisitions and/or divestitures. Proprietary Information of Albemarle Corporation 102 Transition from Value to Growth…

Target Adjusted Target Adjusted EBITDA Margin Bridge1 EBITDA Margins1:  Growth in Lithium and Refining Solutions 32 – 35%  Disciplined M&A 28% strategy  Operational excellence

2016 Lithium Other Productivity Inflation Growth 5-Yr Growth Growth Expense Target

…With Results Driven by Lithium Growth and Productivity

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 103 Operational Excellence: Multifunctional Approach to Deliver Sustained Value

Margin Rates Product Costs Sustained Productivity Back Office Costs Value Cash Flow Working Capital Capital Costs Capital Costs

• Manufacturing Process Excellence Continuous • Sourcing Excellence Improvement • Business Process Optimization • M&A Execution and Integration

Culture of Execution

Proprietary Information of Albemarle Corporation 104 Manufacturing Process Excellence Engrained at Albemarle

Applying strong Albemarle framework corporate-wide to drive enhanced operational efficiency and effectiveness

Yield Improvements Efficiency Improvements

• 10% reduction in 2015 manufacturing energy • 15% increase on a product in Pasadena consumption across all plants • 9% increase in lithium hydroxide yield in • 17% reduction of CO2 and energy at Kings Mountain Pasadena facility • 10% increase in LCE recovery from brine in • 50% reduction in solvent use through Chile improved recycling in Korea

Culture of Continuous Improvement Driving Cost Reduction and Yield

Proprietary Information of Albemarle Corporation 105 Rockwood M&A: Successful Integration Results

What We Said What We Did Results Adjusted 20152: 26% Margins of 25%+ EBITDA1 2016: 28%

2015: $60M savings; year-end run rate $88M $100 Million by YE 2016 Cost Synergies 2016: $120M savings; year-end run rate $150M

2015: $500M+ 2015: $506M Adjusted FCF1,3 3-5 years: $600-900M 2016: $672M

2015: $1.16 Dividend Maintain $1.10 per share 2016: $1.22

Reduced Net Debt / Adjusted EBITDA1,4 ratio Debt Focus on rapid deleveraging from 3.5x at acquisition to 0.2x in two years

FY2016 Net Sales Growth2: 5% Growth Significantly above GDP FY2016 Adjusted EBITDA Growth2: 13%

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. 2 Calculated using Pro-Forma FY2015. See Appendix for definition and Pro-Forma reconciliations of historical measures. 3 Free Cash Flow and Adjusted Free Cash Flow include discontinued operations (Chemetall®) in the amount of approximately $203M and $175M in FY2015 and FY2016, respectively. 4 Based on bank covenant definition. Proprietary Information of Albemarle Corporation 106 Operational Excellence: Sustained Value Ahead

Institutionalizing Performance Improvement: Created a new, dedicated Performance Improvement Team

Current Capital project execution process to execute projects safely, on Priorities quality, on time and on budget Expect to approve project to deliver a global ERP system with advanced technical capabilities

• Phase II of Rockwood integration

• Reduce complexity and costs utilizing best practice processes

• Enable better, more rapid decision-making with real-time, global analytics

• 3 years for “go live” implementation

Culture of Operational Excellence Enhances our Leadership Position

Proprietary Information of Albemarle Corporation 107 Disciplined Capital Allocation Strategy – Our Priorities

Invest for Invest for Maintain Fund Growth, Growth in Investment Dividend High Return Grade Rating Growth Maintain Projects • Long-term Net • Increase dividend Debt to Adjusted annually: 23 • Strategically grow EBITDA1,2 Target: consecutive years Flexibility Lithium & Refining 2.0x – 2.5x since going Solutions public in 1994 and Deliver • Short-term target Disciplined lower to stay Repurchase flexible for Shareholder M&A Strategy investment Shares Value • Must support or • Repurchase accelerate our program of ~$250

strategy million announced Mar. 1st, 2017

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. 2 Based on the bank covenant definition. Proprietary Information of Albemarle Corporation 108 Capital Investment Projected to Generate Excellent Returns 5-Year Capital Expectations $4.0 – 4.5B Growth capital: Growth, Wave I $700M - $1.0 Billion • Driven by Lithium • $150 - $250 million annually, including resource development $2.0 – 2.2B • Approximately 100,000 MT LCE Growth, Wave II of additional derivative capacity by early 2020s Base Base capital: • 4 – 6% of sales (all GBUs) 5-Yr Operating 5-Yr CAPEX Cash Additional Adjusted EBITDA1 Potential of $350 - $500 Million per Year

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 109 Go-forward M&A Strategy – Invest for Profitable Growth

 We will remain disciplined

 Transactions must meet our return hurdle: IRR > WACC

 Solid pipeline

 Potential acquisitions accelerate and strengthen our strategy ─ Specialized, next generation technology and / or materials ─ Resources, resource enhancement ─ Conversion assets ─ Assets, businesses to fill out portfolio

 JVs: Must have strategic relevance; no need for cash-only partnerships Disciplined M&A Consistent with Strategy

Proprietary Information of Albemarle Corporation 110 Long History of Returning Capital to Shareholders

Dividends per Share Total Return of Capital ($M) Dividends Share Repurchases

$1.40 $700 $660 $1.20 $600 $1.00 $500 $385 $0.80 $400 $582 $0.60 $300 $236 $234 $250 $0.40 $200 $133 $125 $178 $150 $119 $0.20 $100 $64 $119 $125 $135 $58 $69 $78 $84 - - 2011 2012 2013 2014 2015 2016 2017E

Annual Dividend Growth a Priority

Proprietary Information of Albemarle Corporation 111 Balance Sheet and Cash Flow Provides

Flexibility for Investment or Return to Shareholders

1,2 $4.0B+ Net Available Leverage 0.2x at Share Operating Investment Ratio at YE16 Capex Dividends Buyback Cash Capacity Year 5 Long-Term Target ~2.5x

~2.0x Adjusted EBITDA Adjusted

0.0x Net Debt / Debt Net

$4.0B+ Available for Investment or Return of Capital

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. 2 Based on the bank covenant definition. Proprietary Information of Albemarle Corporation 112 We Evaluate Multiple Scenarios to Ensure Sustainability

Key Takeaways Great Recession FCF1 Scenario Great Recession $800M 2008/09 levels beginning 2018 $672M Revenue Trend  Sufficient free cash flow1 generation $600M Adj. FCF 1 in severe recession to fund strategy $400M (Scenario)

Adj. FCF 1 $200M (Actual /  Excess capacity for transactional $200-300M Est) $- opportunities and/or share 2016A 2017E 2018 2019 2020 2021 2022 repurchases Scenario Assumptions  Sufficient liquidity to withstand both • Maintain Capex spending and investment in Lithium a systemic shock and a prolonged • Maintain 2.0x Net Debt/ Adjusted EBITDA1,2 recessionary period • Manage cash on hand at ~$200 million at all times • Dividend increases in line with historical levels

We Project Sufficient Free Cash Flow1 to Self-fund our Strategy, Even in a Crisis

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. 2 Based on the bank covenant definition. Proprietary Information of Albemarle Corporation 113 Reaffirming Full Year 2017 Guidance

Net Sales $2.80 – 2.95B Net Sales growth of 5 – 10%

Adj. EBITDA1 growth of 6 – 11% over 1 $800 – 840M Adj. EBITDA 2016

Adj. EBITDA Margin1 28 – 29% • Lithium & Adv. Materials: Expecting Lithium Adj. EBITDA1 growth >20%, PCS relatively flat • Refining Solutions: Expecting Adj. EBITDA1 1 $4.00 – 4.25 Adj. Diluted EPS growth in the low single digits vs. 2016 • Bromine Specialties: Expecting Adj. EBITDA1 Capex $350 – 400M comparable to 2016

Adj. FCF1 $200 – 300M Adj. Diluted EPS1 growth of 12 – 19%

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures.

Proprietary Information of Albemarle Corporation 114 Introducing 2021 Financial Targets

Li & Adv. Bromine Refining Total 5-Year Targets Materials Specialties Solutions Albemarle

Est. Industry Revenue CAGR1 10%+ 0 – 2% 2 – 4% n/a

Albemarle Revenue CAGR 12 – 17% 0 – 2% 2 – 4% 7 – 10%

Albemarle Adj. EBITDA Margin2 38 – 44% 27 – 30% 28 – 32% 32 – 35%

Each Global Business Unit is Integral to Our Growth Strategy

1 Management estimates. 2 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 115 Financial Key Takeaways

1 Clear growth and margin expansion opportunities

2 Operational excellence and strong execution track record enables sustainable value creation

3 Strong free cash flow1 supports balance sheet flexibility

4 Balanced, disciplined capital deployment framework with a focus on: → Driving growth investments – organic and M&A → Delivering productivity → Creating value for shareholders

1 Non-GAAP measure. See Appendix for definition and Non-GAAP reconciliations of historical measures. Proprietary Information of Albemarle Corporation 116 Summary Key Messages

Proprietary Information of Albemarle Corporation Albemarle Is Well Positioned to Maximize Long-Term Shareholder Value Creation

1 Multi-year journey has resulted in a more focused and growth-oriented portfolio underpinned by energy efficiency macro drivers

2 Clearly articulated and well understood strategy with the people, free cash flow and additional resources necessary to implement the strategy

3 Experienced and focused management team with clear deliverables

4 Actively managing our portfolio in a disciplined and focused manner to drive shareholder value

5 Strong balance sheet and disciplined approach to capital allocation with focus on highest return: reinvestment, strategic acquisitions and returns to shareholders

Proprietary Information of Albemarle Corporation 118 Albemarle Investor Day Appendix and Glossary March 16, 2017

ProprietaryProprietary Information Information of ofAlbemarle Albemarle Corporation Corporation. Appendix Non-GAAP Reconciliations

ProprietaryProprietary Information Information of ofAlbemarle Albemarle Corporation Corporation. Net Income

Year Ended December 31, ($ in thousands) 2016 2015 Net income attributable to Albemarle Corporation $ 643,675 $ 334,906 Add back: Income from discontinued operations (net of tax) (202,131 ) (32,476 ) Earnings from continuing operations 441,544 302,430 Add back: Non-operating pension and OPEB items from continuing operations (net of tax) 17,608 (24,588 ) Non-recurring and other unusual items from continuing operations (net of tax) (55,374 ) 114,336 Adjusted net income from continuing operations 403,778 392,178 Pro-forma: Net impact of (income) from non-cash FX gain (net of tax) — (40,160 ) See right for a reconciliation of adjusted net Pro-forma: Net impact of income from divested businesses (net of tax) — (21,608 ) income attributable to Albemarle Corporation (“adjusted earnings”), adjusted net income from Pro-forma adjusted net income from continuing operations 403,778 330,410 continuing operations, and pro-forma adjusted Net impact of income from non-cash FX gain (net of tax) — 40,160 net income, the non-GAAP financial measures, to Net income attributable to Albemarle Net impact of income from divested businesses (net of tax) — 21,608 Corporation, the most directly comparable Income from discontinued operations (net of tax) 202,131 32,476 financial measure calculated and reported in Add back: accordance with GAAP. Adjusted net income attributable to Albemarle Corporation is defined Non-operating pension and OPEB items from discontinued operations (net of tax) 5,798 (7,738 ) as Net income attributable to Albemarle Non-recurring and other unusual items from discontinued operations (net of tax) (128,340 ) 22,471 Corporation before discontinued operations and the non-recurring, other unusual and non- Adjusted net income attributable to Albemarle Corporation $ 483,367 $ 439,387 operating pension and OPEB items as shown. Pro-forma adjusted net income is defined as Adjusted diluted earnings per share form continuing operations $ 3.57 $ 3.52 Net income attributable to Albemarle Corporation before discontinued operations and Adjusted diluted earnings per share attributable to Albemarle Corporation $ 4.27 $ 3.94 the non-recurring, other unusual and non- Pro-forma adjusted diluted earnings per share attributable to Albemarle Corporation $ 3.57 $ 2.96 operating pension and OPEB items, and the net impact of divested businesses. Weighted-average common shares outstanding – diluted 113,239 111,556

Proprietary Information of Albemarle Corporation 121 EBITDA - Pro-forma

Year Ended December 31, ($ in thousands) 2016 2015 Net income attributable to Albemarle Corporation $ 643,675 $ 334,906 Add back: Income from discontinued operations (net of tax) (202,131 ) (32,476 ) Interest and financing expenses 65,181 81,650 Income tax expense 96,263 11,134 Depreciation and amortization 190,975 181,173 EBITDA 793,963 576,387 Non-operating pension and OPEB items 25,589 (35,300 ) See right for a reconciliation of EBITDA, adjusted EBITDA, and pro-forma adjusted EBITDA, the non-GAAP Non-recurring and other unusual items (excluding items associated with financial measures, to Net income attributable to interest expense) (61,335 ) 214,913 Albemarle Corporation, the most directly comparable Adjusted EBITDA $ 758,217 $ 756,000 financial measure calculated and reported in accordance with GAAP. EBITDA is defined as Net income attributable Pro-forma: Net impact of adjusted EBITDA from divested businesses — (86,640 ) to Albemarle Corporation before interest and financing Pro-forma adjusted EBITDA $ 758,217 $ 669,360 expenses, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before discontinued operations and the non-recurring, other Net sales $ 2,677,203 $ 2,826,429 unusual and non-operating pension and OPEB items as Pro-forma: Net impact of net sales from divested businesses — (265,296 ) shown. Pro-forma adjusted EBITDA is defined as adjusted EBITDA before the net impact of EBITDA from Pro-forma net sales $ 2,677,203 $ 2,561,133 divested businesses. EBITDA margin 29.7 % 20.4 % See right for a reconciliation of pro-forma net sales, the non-GAAP financial measure, to net sales, the most Adjusted EBITDA margin 28.3 % 26.7 % directly comparable financial measure calculated and Year-over-year difference in Adjusted EBITDA margin 157 bps reported in accordance with GAAP. Pro-forma net sales is defined as net sales before the net impact of net sales Pro-forma adjusted EBITDA margin 28.3 % 26.1 % from divested businesses. Year-over-year difference in Pro-forma adjusted EBITDA margin 219 bps

Proprietary Information of Albemarle Corporation 122 EBITDA - by Segment (twelve months ended Dec 31)

Lithium and Reportable Advanced Bromine Refining Segments Consolidated ($ in thousands) Materials Specialties Solutions Total All Other Corporate Total Year ended December 31, 2016: Net income (loss) attributable to Albemarle Corporation $ 261,394 $ 187,364 $ 202,874 $ 651,632 $ 131,301 $ (139,258) $ 643,675 Depreciation and amortization 101,966 39,562 36,089 177,617 7,302 6,056 190,975 Non-recurring and other unusual items (excluding items associated with interest expense) — — — — (123,831 ) 62,496 (61,335 ) Interest and financing expenses — — — — — 65,181 65,181 Income tax expense — — — — — 96,263 96,263 Income from discontinued operations (net of tax) — — — — — (202,131) (202,131 ) Non-operating pension and OPEB items — — — — — 25,589 25,589 Adjusted EBITDA $ 363,360 $ 226,926 $ 238,963 $ 829,249 $ 14,772 $ (85,804) $ 758,217

Year ended December 31, 2015: Net income (loss) attributable to Albemarle Corporation $ 148,821 $ 186,474 $ 161,585 $ 496,880 $ 32,781 $ (194,755) $ 334,906 Depreciation and amortization 84,069 36,179 34,039 154,287 18,183 8,703 181,173 Non-recurring and other unusual items (excluding items associated with interest expense) 79,977 — 1,971 81,948 3,029 129,936 214,913 Interest and financing expenses — — — — — 81,650 81,650 Income tax expense — — — — — 11,134 11,134 Income from discontinued operations (net of tax) — — — — — (32,476) (32,476 ) Non-operating pension and OPEB items — — — — — (35,300) (35,300 ) Adjusted EBITDA $ 312,867 $ 222,653 $ 197,595 $ 733,115 $ 53,993 $ (31,108) $ 756,000

See above for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, to net income attributable to Albemarle Corporation (“earnings”), the most directly comparable financial measure calculated and reporting in accordance with GAAP. Adjusted earnings on a segment basis is defined as earnings before discontinued operations and the special and non-operating pension and OPEB items as listed above. EBITDA is defined as earnings before interest and financing expenses, income taxes, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA before discontinued operations and the non-recurring, other unusual and non-operating pension and OPEB items as listed above.

Proprietary Information of Albemarle Corporation 123 EBITDA - Margin by Segment (twelve months ended Dec 31)

Lithium and Advanced Bromine Refining Reportable Consolidated ($ in thousands) Materials Specialties Solutions Segments Total All Other Total Year ended December 31, 2016: Net sales $ 968,216 $ 792,425 $ 732,137 $ 2,492,778 $ 180,988 $ 2,677,203 Net income (loss) attributable to Albemarle Corporation 27.0 % 23.6 % 27.7 % 26.1 % 72.5 % 24.0% Depreciation and amortization 10.5 % 5.0 % 4.9 % 7.1 % 4.0 % 7.1% Non-recurring and other unusual items (excluding items associated with interest expense) — % — % — % — % (68.4 )% (2.3)% Interest and financing expenses — % — % — % — % — % 2.4% Income tax expense — % — % — % — % — % 3.6% Income from discontinued operations (net of tax) — % — % — % — % — % (7.6)% Non-operating pension and OPEB items — % — % — % — % — % 1.0% Adjusted EBITDA Margin 37.5 % 28.6 % 32.6 % 33.3 % 8.2 % 28.3%

Year ended December 31, 2015: Net sales $ 834,590 $ 775,729 $ 729,261 $ 2,339,580 $ 471,434 $ 2,826,429 Net income attributable to Albemarle Corporation 17.8 % 24.0 % 22.2 % 21.2 % 7.0 % 11.8% Depreciation and amortization 10.1 % 4.7 % 4.7 % 6.6 % 3.9 % 6.4% Non-recurring and other unusual items (excluding items associated with interest expense) 9.6 % — % 0.3 % 3.5 % 0.6 % 7.6% Interest and financing expenses — % — % — % — % — % 2.9% Income tax benefit — % — % — % — % — % 0.4% Income from discontinued operations (net of tax) — % — % — % — % — % (1.1)% Non-operating pension and OPEB items — % — % — % — % — % (1.2)% Adjusted EBITDA Margin 37.5 % 28.7 % 27.1 % 31.3 % 11.5 % 26.7%

See above for adjusted EBITDA margin, a non-GAAP financial measure defined as adjusted EBITDA divided by net sales. See slide 7 for the related reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, to net income attributable to Albemarle Corporation (“earnings”), the most directly comparable financial measure calculated and reporting in accordance with GAAP.

Consolidated Total includes net sales from Corporate (not shown) of $3,437 and $15,415 in the twelve months ended Dec 31, 2016 and 2015, respectively.

Proprietary Information of Albemarle Corporation 124 EBITDA and EBITDA Margin – Lithium & Adv. Materials (twelve months ended Dec 31)

Total Lithium and Advanced ($ in thousands) Lithium PCS Materials Year ended December 31, 2016: Net income attributable to Albemarle Corporation $ 198,852 $ 62,542 $ 261,394 Depreciation and amortization 86,862 15,104 101,966 Adjusted EBITDA $ 285,714 $ 77,646 $ 363,360

Year ended December 31, 2015: Net income attributable to Albemarle Corporation $ 63,473 $ 85,348 $ 148,821 Depreciation and amortization 70,014 14,055 84,069 Non-recurring and other unusual items 79,977 — 79,977 Adjusted EBITDA $ 213,464 $ 99,403 $ 312,867

See right for a reconciliation of adjusted EBITDA and Year ended December 31, 2016: adjusted EBITDA margin on a segment basis, the non- Net sales $ 668,852 $ 299,364 $ 968,216 GAAP financial measure, to net income attributable to Net income attributable to Albemarle Corporation 29.7 % 20.9 % 27.0 % Albemarle Corporation (“earnings”), the most directly comparable financial measure calculated and reporting in Depreciation and amortization 13.0 % 5.0 % 10.5 % accordance with GAAP. Adjusted earnings on a segment Adjusted EBITDA 42.7 % 25.9 % 37.5 % basis is defined as earnings before discontinued operations and the special and non-operating pension and OPEB items as shown. EBITDA is defined as earnings Year ended December 31, 2015: before interest and financing expenses, income taxes, and depreciation and amortization. Adjusted EBITDA is Net sales $ 508,844 $ 325,746 $ 834,590 defined as EBITDA before discontinued operations and Net income attributable to Albemarle Corporation 12.5 % 26.2 % 17.8 % the non-recurring, other unusual and non-operating Depreciation and amortization 13.8 % 4.3 % 10.1 % pension and OPEB items as shown. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net Non-recurring and other unusual items 15.7 % — % 9.6 % sales Adjusted EBITDA 42.0 % 30.5 % 37.5 % Proprietary Information of Albemarle Corporation 125 EBITDA - without restatement for subsequent acquisitions & divestitures

Year Ended December 31,

($ in thousands) 2016 2015 2014 2013

Net income attributable to Albemarle Corporation $ 643,675 $ 334,906 $ 133,316 $ 413,171 Income from discontinued operations (net of tax) (202,131) — — — Interest and financing expenses 65,181 132,722 41,358 31,559 Income tax expense (benefit) 96,263 29,122 (2,424) 136,322 Depreciation and amortization 190,975 260,076 103,572 107,370 EBITDA $ 793,963 $ 756,826 $ 275,822 $ 688,422 Non-operating pension and OPEB items 25,589 (46,244) 125,462 (146,193) Non-recurring and other unusual items (excluding items associated with interest expense) (61,335) 248,740 73,597 33,361 Loss from discontinued operations — — 87,274 — Adjusted EBITDA $ 758,217 $ 959,322 $ 562,155 $ 575,590

Net sales $ 2,677,203 $ 3,651,335 $ 2,445,548 $ 2,616,416

EBITDA margin 30% 21% 11% 26% Adjusted EBITDA margin 28% 26% 23% 22%

See above for a reconciliation of EBITDA, adjusted EBITDA, and pro-forma adjusted EBITDA, the non-GAAP financial measures, to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP. EBITDA is defined as Net income attributable to Albemarle Corporation before interest and financing expenses, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before discontinued operations and the non-recurring, other unusual and non-operating pension and OPEB items as listed below. Pro-forma adjusted EBITDA is defined as adjusted EBITDA before the net impact of EBITDA from divested businesses.

Proprietary Information of Albemarle Corporation 126 EBITDA - Bromine Specialties

Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015 2016 Bromine Specialties Net income attributable to Albemarle Corporation $ 51,986 $ 204,598 $ 309,153 $ 273,552 $ 217,230 $ 189,059 $ 186,474 $ 187,364 Depreciation and amortization n/a n/a n/a n/a n/a 35,917 36,179 39,562 Adjusted EBITDA n/a n/a n/a n/a n/a 224,976 222,653 226,926 Pro-forma: Assumed depreciation and amortization1 35,917 35,917 35,917 35,917 35,917 — — — Pro-forma Adjusted EBITDA 87,903 240,515 345,070 309,469 253,147 224,976 222,653 226,926

Net Sales $ 556,152 $ 809,873 $ 1,005,848 $ 909,656 $ 856,298 $ 808,857 $ 775,729 $ 792,425 Adjusted EBITDA margin n/a n/a n/a n/a n/a 28% 29% 29% Pro-forma Adjusted EBITDA margin 16% 30% 34% 34% 30% 28% 29% 29%

See above for a reconciliation of adjusted EBITDA, pro-forma adjusted EBITDA, adjusted EBITDA margin, and pro-forma adjusted EBITDA margin on a segment basis, the non-GAAP financial measure, to net income attributable to Albemarle Corporation (“earnings”), the most directly comparable financial measure calculated and reporting in accordance with GAAP. EBITDA is defined as earnings before interest and financing expenses, income taxes, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA before discontinued operations and the non-recurring, other unusual and non- operating pension and OPEB items as listed above.

1FY2014 depreciation and amortization (D&A) assumed for FY2009 – FY2013 Pro-forma, Adj. EBITDA due to difficulty created by subsequent reorganization of the GBU.

Proprietary Information of Albemarle Corporation 127 EBITDA supplemental

Twelve Months ($ in thousands) Ended Three Months Ended Dec 31, 2016 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Adjusted EBITDA $ 758,217 $ 187,384 $ 188,329 $ 190,471 $ 192,033 Net income attributable to noncontrolling interests 37,094 8,188 9,477 12,067 7,362 Adjusted equity in net income of unconsolidated investments (net of tax) (59,637 ) (14,847 ) (14,953 ) (13,846 ) (15,991 ) Dividends received from unconsolidated investments 43,759 8,777 3,460 31,322 200 Consolidated EBITDA $ 779,433 $ 189,502 $ 186,313 $ 220,014 $ 183,604

Total Long Term Debt (as reported) $ 2,369,262 Off balance sheet obligations and other 51,300 Consolidated Funded Debt $ 2,420,562 Less Cash 2,269,756 Consolidated Funded Net Debt $ 150,806

Consolidated Funded Debt to Consolidated EBITDA Ratio 3.1 Consolidated Funded Net Debt to Consolidated EBITDA Ratio 0.2

1 This supplemental is for net-debt-to-adjusted EBITDA ratio based on the bank covenant definition.

Proprietary Information of Albemarle Corporation 128 Diluted EPS

Year Ended December 31, 2016 2015 Diluted earnings per share attributable to Albemarle Corporation $ 5.68 $ 3.00 Add back: Non-operating pension and OPEB items from continuing operations (net of tax) 0.16 (0.22 ) Non-recurring and other unusual items from continuing operations (net of tax) Utilization of inventory markup — 0.60 Write-off of research and development fixed assets 0.01 — Restructuring and other, net — (0.05 ) Gain on sales of businesses, net (1.02 ) — Acquisition and integration related costs 0.31 0.76 Loss on extinguishment of debt 0.01 0.03 Interest and financing expenses related to Rockwood acquisition — 0.01 Other 0.02 0.03 Impairment of unconsolidated investment — 0.02 Discrete tax items 0.18 (0.37 ) Total non-recurring and other unusual items (0.49 ) 1.03 Income from discontinued operations (net of tax) (1.78 ) (0.29 ) Adjusted diluted earnings per share from continuing operations1 $ 3.57 $ 3.52 Income from discontinued operations (net of tax) 1.78 0.29 Add back: Non-operating pension and OPEB items from discontinued operations (net of tax) 0.05 (0.07 ) Non-recurring and other unusual items from discontinued operations (net of tax) (1.13 ) 0.20 Adjusted diluted earnings per share attributable to Albemarle Corporation1 $ 4.27 $ 3.94

1Totals may not add due to rounding Proprietary Information of Albemarle Corporation 129 Free Cash Flow - without restatement for subsequent acquisitions & divestitures

Year Ended December 31,

($ in millions) 2016 2015 2014 2013

Net Cash from Operations $ 733 $ 361 $ 459 $ 433 Less: Capital Expenditures (197 ) (228 ) (111 ) (155 ) Add Back: Pension Contributions 20 22 14 13 Free Cash Flow1 $ 557 $ 155 $ 361 $ 291 Acquisition and integration related costs 85 146 — — Cash taxes on repatriation 20 108 — — Other cash adjustments 10 97 — — Adjusted Free Cash Flow1 $ 672 $ 506 $ 361 $ 291

See above for a reconciliation of Free Cash Flow and Adjusted Free Cash Flow, the non-GAAP measures, to Net Cash from Operations, the most directly comparable financial measure calculated and reporting in accordance with GAAP. Free Cash Flow and Adjusted Free Cash Flow include discontinued operations (Chemetall®). Free Cash Flow is defined as Net Cash from Operations, add back pension and post-retirement contributions and subtract capital expenditures. Adjusted Free Cash Flow is defined as Free Cash Flow excluding non-recurring cash expenses and cash taxes on repatriation as listed above.

1Totals may not add due to rounding.

Proprietary Information of Albemarle Corporation 130 Divested Businesses - Enterprise Value / Adjusted EBITDA Multiple

($ in thousands) Metal Sulfides Minerals Chemetall Aggregate

Net Proceeds $ 137,000 $ 187,000 $ 3,118,072 $ 3,442,072 Sale Date Jan. 4, 2016 Feb. 1, 2016 Dec. 17, 2016 N/A Last-Twelve Months (LTM) Adjusted EBITDA 18,031 19,436 214,335 251,803 LTM Adjusted EBITDA as of Date Dec. 31, 2015 Jan. 31, 2016 Nov. 30, 2016 N/A EV / Adj. EBITDA Multiple (Net Proceeds / LTM Adj. EBITDA) 7.6x 9.6x 14.5x 13.7x

Proprietary Information of Albemarle Corporation 131 Glossary

ProprietaryProprietary Information Information of ofAlbemarle Albemarle Corporation Corporation. Glossary

General Lithium and Advanced Materials • PEV – Plug-in Electric Vehicle • GBU – Global Business Unit • PCS – Performance Catalysts Solutions • ESS – Energy Storage System • FCF - Free Cash Flow • AG – Agricultural • CE – Consumer Electronics • EBITDA - Earnings before Interest, Tax, • Li – Lithium • ICE – Internal Combustion Engine Depreciation and Amortization • LICl – Lithium Chloride • IPP – Independent Power Producer • OPEB - Other Postemployment Benefits • LiO2 – Lithium Oxide • KWh – Kilowatt hour • MT - Metric Tons • Li2CO3 – Lithium Carbonate • GWh – Gigawatt hour • USD - United States Dollars • TG – Technical Grade • BNEF – Bloomberg New Energy Finance • CAGR - Compound Annual Growth Rate • LCE – Lithium Carbonate Equivalent • Pen. Rate – Penetration rate as a % of • GDP - Gross Domestic Product • LiBOB – Lithium Bis-(oxalato)borate annual sale • M – Million • LDA – Lithium Diisopropylamide • PFS – Preliminary Feasibility Study • ERP – Enterprise Resource Planning • LHS – Lithium Hexamethyldisilazide • DFS – Definitive Feasibility Study • Apps – Applications • FIN – Finance • BEV – Battery Electric Vehicles • CONST – Construct • PHEV – Plug-in Hybrid Electric Vehicle • PROD – Produce • HEV – Hybrid Electric Vehicle • EPC – Engineering, Procurement, and • xEV – Plug-in Electric Vehicle Construction

Proprietary Information of Albemarle Corporation 133 Glossary

Bromine Specialties Refining Solutions • CCF - Clear Completion Fluid • FCC – Fluid Cracking Catalysts • PTA - Purified Terephthalic Acid • CFT – Clean Fuels Technology • PET - Polyethylene Terephthalate • HPC – Hydro Processing Catalysts • ALB - Albemarle • LPG – Liquefied Petroleum Gas • ICL - Israel Chemicals Ltd • VGO – Vacuum Gas Oil • CHMT - Chemtura • EV – Electric Vehicle • JBC - Jordan Bromine Company • PHEV – Plug-in Hybrid Electric Vehicle • APC - Arab Potash Company • LSOH - Low Smoke, Zero Halogen • EPS - Expanded Polystyrene • XPS - Extruded Polystyrene • HFO - Hydrofluoroolefin • ADAS - Advanced Driver Assistance System • FR - Flame Retardant • ppm – parts per million • KT – 1000’s Metric Tons

Proprietary Information of Albemarle Corporation 134 www.albemarle.com

Proprietary Information of Albemarle Corporation 135