Q2 2020 Earnings Presentation 8.6.20
Safe HarborStatement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this presentation are forward-looking statements. In some cases, you can identify these statements by forward- looking words such as “may,” “might,” “will,” “will continue to,” "will likely result," “should,” “expect,” “expects,” “intends,” “plans,” “anticipates,” “believe,” “believes,” “estimates,” “predic ts, ” “potential,” “continue,” “could,” “forecast,” “future,” “is confident that,” “plans,” or “projects,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about Livent, may include projections of Livent’s future financial performance, Livent’s anticipated growth strategies and anticipated trends in Livent’s business. These statements are only predictions based on Livent’s current expectations and projections about future events. There are important factors that could cause Livent’s actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Currently, one of the most significant factors is the adverse effect of the current coronavirus ("COVID- 19") pandemic on our business. The ultimate extent to which COVID-19 impacts us will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Additional factors that could cause Livent’s actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements include a decline in the growth in demand for electric vehicles; volatility in the price for performance lithium compounds; adverse global economic conditions; competition; quarterly and annual fluctuations of our operating results; risks relating to Livent’s planned production expansion and related capital expenditures, including any temporary suspension of our expansion efforts; the potential development and adoption of battery technologies that do not rely on performance lithium compounds as an input; liquidity and access to credit; reduced customer demand, or delays in growth of customer demand, for higher performance lithium compounds; the success of Livent’s research and development efforts; risks inherent in international operations and sales, including political, financial and operational risks specific to Argentina, China and other countries where Livent has active operations; customer concentration and the delay or loss of, or significant reduction in orders from, large customers; failure to satisfy customer quality standards; fluctuations in the price of energy and certain raw materials; employee attraction and retention; union relations; cybersecurity breaches; our ability to protect our intellectual property rights; the lack of proven reserves; legal and regulatory proceedings; including any shareholder lawsuits; compliance with environmental, health and safety laws; changes in tax laws; risks related to our separation from FMC Corporation; risks related to ownership of our common stock, including price fluctuations and lack of dividends; as well as the other factors described under the caption entitled “Risk Factors” in Livent’s 2019 Form 10-K filed with the Securities and Exchange Commission on February 28, 2020, our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 6, 2020, and our subsequent Forms 10-Q filed with the Securities and Exchange Commission. Although Livent believes the expectations reflected in the forward-looking statements are reasonable, Livent cannot guarantee future results, level of activity, performance or achievements. Moreover, neither Livent nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Livent is under no duty to update any of these forward-looking statements after the date of this presentation to conform its prior statements to actual results or revised expectations. Non-GAAP FinancialTerms In these slides, Livent uses the financial measures adjusted EPS, Adjusted EBITDA, adjusted cash from operations and capital spending. These terms are not calculated in accordance with generally accepted accounting principles (GAAP). Definitions of these terms, as well as a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP, are provided on our website ir.livent.com. 2
Current Market Conditions • Visibility remains limited amid continued supply chain disruptions • Lower levels of uncontracted activity • EV penetration rates reaching all time highs in certain regions • Constraints on some lithium operations due to COVID-19, particularly in South America 3
Reported Financial Results Q2 2020 Q1 2020 Q2 2019 Revenue $65 $69 $114 GAAP $0 ($2) $16 Net Income (Loss) Adjusted $6 $9 $28 EBITDA (1) GAAP 0¢ (1¢) 11¢ EPS Adjusted 0¢ 2¢ 12¢ EPS (1) Note: Amounts in millions of USD, except earnings per diluted share. (1) Denotes non-GAAP financial term. 4
Livent Business Focus • All production facilities remain online and operating • Customers indicating they expect to honor volume commitments, albeit with delayed timing • OEMs and battery producers focused on lithium hydroxide, with significant increase in volumes needed over next five years • Managing continued disconnect between current pricing and customer- driven investment demands 5
Enhanced Liquidity Position Pro Forma • Issued Green Notes in Q2 6/30/2020 Adj. 6/30/2020 Cash & Cash Equivalents $17 $17 • Leverage neutral transaction (1) with proceeds used to pay Secured Revolving Credit Facility 28 (20) 8 down debt (2) Convertible Green Notes due 2025 (3) 225 21 246 • Retain additional liquidity under Total Debt $253 $254 existing revolver Total Net Debt $236 $236 • Net Secured Debt to LTM Adj. EBITDA (4) Implemented Green Bond 0.2x NM Framework Total Net Debt to LTM Adj. EBITDA (4) 3.9x 3.9x Note: Amounts in millions of USD. (1) Includes $0.6mm in transaction fees. (2) Over-Allotment Option granted to initial purchasers closed on July 7, 2020. 6 (3) Amounts exclude debt discount recorded on balance sheet. (4) Denotes non-GAAP financial term.
Longer-Term Industry Outlook • New government subsidies and incentives announced in key markets • Additional EV model launches announced • Highly publicized strategic investments into multiple EV start-ups • Strengthening industry commitments to reducing carbon footprint in response to consumer and investor demands • Cancelled or delayed lithium expansions increase probability that structural supply deficit for battery grade material occurs sooner 7
History of Delivering on Sustainability Targets • Livent has exceeded or nearly achieved its 20 percent reduction targets five years ahead of schedule since initial 2013 baseline: ▪ 19% reduction in energy consumption ▪ 23% reduction in greenhouse gas emissions ▪ 40% reduction in waste generation ▪ 20% reduction in water usage • Will announce future ESG program goals in H2 2020 8 Source: Livent 2019 Sustainability Report (can be found at: livent.com/sustainability).
Commitment to Sustainability Leadership • Published first Sustainability Report as standalone company and implemented Green Bond Framework (1) • Actively engaging with customers and investors on Livent’s unique sustainability profile ▪ Only producer with a multi-decade track record of using a direct lithium extraction process at a commercial scale ▪ Smaller land footprint and brine/water volume loss versus traditional brine processes ▪ Over a decade of data collection and modeling of salar ▪ Lower product “life - cycle” carbon footprint vs. conventional hard rock mining + conversion route 9 (1) 2019 Sustainability Report can be found at: livent.com/sustainability; Green Bond Framework can be found at: ir.livent.com.
Appendix
No Change to Capital Spending Through Q2 Outlook 2020 2019 '20 vs. '19 2020 Cash From Operations (GAAP) ($0) $41 ($42) Adjusted Cash from Operations (1) $3 $67 ($64) Withdrawn Capital Spending (1)(2) ($90) ($74) ($16) (~$115) Of which: Growth ($80) ($61) ($19) (~$90) Maintenance ($10) ($13) $3 (~$25) Note: Amounts in millions of USD; numbers may not tie due to rounding. (1) Denotes non-GAAP financial term. 11 (2) Includes capital expenditures and other investing activities.
Q2 2020 vs. Q1 2020 Financial Bridges Revenue Adjusted EBITDA $9 $69 $65 ($2) ($0) ($2) ($1) $6 $2 ($2) ($2) Revenue Volume Price / F/X Revenue Adj. Volume Price / Cost F/X Adj. EBITDA Mix & Other EBITDA Q1 2020 Mix Q2 2020 (1) (1) Q1 2020 Q2 2020 Note: Amounts in millions of USD; numbers may not tie due to rounding. (1) Denotes non-GAAP financial term. 12
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