DEBT ROAD SHOW PRESENTATION
IMPORTANT LEGAL NOTES
ICL- AT A GLANCE $5.6 B 44 ~11,000 TOP 3 (1) $5.8 B >4.0% #2 BBB-
SUSTAINABILITY SILVER ranking $121 M Sustainable Procurement Success in Emission Reduction Top-Tier Environmental & Safety ‘ Platinum+ ’ Ranking Management
DNA OF LEADERSHIP #1 #3 #1 #1 #1 #1
LEADERSHIP STRATEGY Phosphate Solutions division PRESENT essential ingredients Industrial Products division IAS - Innovative Ag Solutions division IAS Potash division POTASH
ICL BUSINESS LEADERSHIP Market Share – Specialty Phosphates – Europe, NA, and LatAm 1 Global Bromine Production Capacity 1 ICL Others 24% 11% Chinese producers ICL 10% (Dead Sea) 39% USA (ALB, LXS) 23% Albemarle (Dead Sea) 17% Potash business cost by Site and by Company 2 ICL Dead IAS Sea POTASH
ORGANIZATIONAL STRUCTURE ALIGNED WITH STRATEGY Phosphate Solutions division 1,2 Industrial Products division 1 Potash division 1 IAS - Innovative Ag Solutions division 1 IAS POTASH
LEADERSHIP STRATEGY POTASH
INDUSTRIAL PRODUCTS SOLID LEADERSHIP THE GLOBAL BROMINE UNIQUE BROMINE PRICES MARKET LEADER ADVANTAGE IN CHINA 175 K TONNES NO. 1 240K TONNES NO . 1
LEADERSHIP STRATEGY POTASH
POTASH ICL ’ S UNIQUE POSITION WELL ESTABLISHED IN LOWER COST AND FASTER STRONG POSITION GROWING MARKETS TIME-TO-MARKET 4.9 MILLION TONNES 8 0% PRODUCED FROM THE DEAD SEA NO. 6
POTASH ICL ’ S UNIQUE POSITION WELL ESTABLISHED IN LOWER COST AND FASTER STRONG POSITION GROWING MARKETS TIME-TO-MARKET 4.9 MILLION TONNES Europe US IL China 8 0% PRODUCED FROM THE DEAD SEA India Brazil NO. 6
Potash Pricing trend
LEADERSHIP STRATEGY POTASH
PHOSPHATE SOLUTIONS ICL ’ S RECIPE FOR LEADERSHIP UNIQUE BACKWARD WITH A LEADING MARKET AND VALUABLE INTEGRATION MODEL POSITION INNOVATIVE PRODUCTS 5 M TONNES Market Share – Specialty Phosphates – Europe, NA, and LatAm 1 ICL Over 90% of phosphate rock 24% 1.2 M TONNES 290 K TONNES Source: ICL estimates (2017)
Phosphate Commodities Pricing Trends
LEADERSHIP STRATEGY POTASH
INNOVATIVE AG SOLUTIONS CREATING LEADERSHIP SPECIALTY FERTILIZERS - THE FAST GROWING INDUSTRY DIVERSIFIED PORTFOLIO FOUNDATION FOR THE FUTURE ~850 K TONNES Coated Solubles / Straights Liquids Fertilizers Solubl MAP/ Bulk Foliar SRF CRF SOP/CN NOP e NPK MKP Liquids Liquids 1.8 ^ ^ ^ ^ ^ ^ ICL-SF OVER 300 3.2 ^ ^ ^ ^ Compo ^ ^ ^ ^ Haifa 0.4 1.8 ^ ^ ^ YARA 25 YEARS SQM ^ ^ ^ ^ Kingenta ^ ^ ^ ^ FASTEST GROWING
Translating Megatrends and Unmet Needs Into New Innovation Initiatives 20
INNOVATION AT ICL Areas of innovation R&D and Innovation Snapshot 850 granted patents • New Applications for ICL minerals • Products and formulations 40 innovation projects with universities & startups • Process efficiency within the last 5 years • Technology 20 R&D centers globally • Machine learning 300 FTEs $55 M in 2018
INNOVATION AT ICL Translating Megatrends and Unmet Needs Into New Innovation Initiatives Renewable Energy Increase Crop Yields Advanced Materials Increased Health Awareness Safety, Environment & Circular Economy Operational Excellence
FINANCIAL SUMMARY
Q3 2019 Highlights ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Q3 2019 Results Summary
Growth trend in Most Main Operational Parameters – YTD View 680 580 480 380 280 180 80 1-9/2016 1-9/2017 1-9/2018 1-9/2019 1-9/2016 1-9/2017 1-9/2018 1-9/2019 1-9/2016 1-9/2017 1-9/2018 1-9/2019
Current Debt Summary
Decreasing Net Debt/EBITDA Ratio
Successful Optimization of Debt Structure 600 320 475 341 273 122 88 28 0 46 2019 2020 2021 2022 2023 2024 2025 2026 2038 Loans & debentures Securitization
Capital Allocation Approach
KEY TAKEAWAYS
THA THANK YOU NK YOU visit us at www.icl-group.com
Appendix
ICL- 90 YEARS OF HISTORY Establishing & growing operations Consolidating & expanding Focusing on innovation and in Israel globally solidifying leadership 1920 s - 1970 s 1970 s - 2014 2000 s -
LEADING GLOBAL COMPANY 35 35%* %* 22 22% 3% 25 25% 1% 12 12% 2% Sales & marketing office Production site * Percentage of sales by main geographical areas, 2017
ICL – STRATEGIC ADVANTAGES STRATEGIC UNIQUE STARTUP KNOW-HOW LOCATIONS ASSETS NATION proximity to ports & accumulated over customers decades innovation
CORE VALUES LEVERAGING TECHNOLOGY ADOPTING BEST PRACTICES TOP TIER SAFETY EMPLOYER OF AND INDUSTRIAL KNOW FOR CORPORATE PERFORMANCE AND CHOICE HOW TO MEET THE NEEDS OF GOVERNANCE ENVIROMENTAL OUR CUSTOMERS RESPONSIBILITY
Industrial Products
INDUSTRIAL PRODUCTS
Industrial Products Geographical Sales Distribution
Industrial Products Sales Distribution
Industrial Products Supply Chain
Industrial Products Leading the Global Bromine Market Mercury Biocides Control 80 90 7% 4% 70 50 170 Clear brine 165 Flame fluids Retardants 15% 41% 120 120 Brominated organic intermediates & Industrial 280 280 34% 2018 2023
Major Trends and ICL Solutions Trends ICL ’ s Solutions
INDUSTRIAL PRODUCTS MAIN GOALS A WORLD LEADER AND BEYOND
Potash
POTASH 11 0.48 10 9 0.40 8 7 0.32 200 6 5 0.24 100 4 3 0.16 1961 1972 1983 1994 2005 2016 World Crop Expansion of Crop Rotation Increase in Yields World Crop 2027E 2038E 2049E Production in 2005- Arable Land Production in 2050 2007 World population (Bn) Arable land (Ha/Person)
World Main Crops Long Term Forecast Consumption, Stock and Stock to Use Ratio Consumption
World Grains Production & Consumption: Current Stock to Use Ratio
ICL ’ s Potash Market Share in Fast Growing Markets India Brazil China 3% 4% 15% 2% 13% 11% 21% 30% 31% 12% 4% 23% 19% 19% 16% 38% 24% 2% 13% Uralkali BPC Canpotex APC ICL K+S Other Canpotex Uralkali APC BPC ICL K & S Canpotex Uralkali SQM BPC ICL K&S 14% 5% 9% 5% 20% 4% 20% 10% 20% 12% 25% 29% 23% 16% 23% 31% 9% 25% APC BPC Canpotex ICL Uralkali K+S Uralkali BPC Canpotex ICL APC Others SQM BPC Uralkali K+S Canpotex ICL
ICL UK: The World ’ s Only Producer of Polysulphate ▪ ▪ ▪ ▪ ▪ ▪
POTASH OUR GOALS TOP- 3 5 MT 10% 1 M
Phosphate Solutions
Phosphate Solutions: Backward Integrated Value Chain
PHOSPHATE SOLUTIONS - FOOD TASTE & ESSENTIAL BITE MOUTH FEEL TEXTURE & RISE MINERALS LAST LONGER
Food Specialties: Markets and Competition
PHOSPHATE SOLUTIONS - INDUSTRIAL Oil drilling Oral care Metals Mining Cleaning products Leather Construction Paints & coatings Asphalt Water treatment
Phosphoric Acid Pricing Trends %
YPH JV – ICL ’ s Integrated Phosphate Platform in China UNIQUE BACKWARD GROWING PRODUCTION TARGETING A SHIFT INTEGRATION MODEL AND FINANCIAL METRICS TOWARDS SPECIALTIES ▪ 2.5 M TONNES Growth in production, improving market conditions and efficiency measures resulted in a positive operating income 1 in 2018 480K TONNES $ million Q3 ’ 19 2018 2017 2016 YTD Sales 273 387 363 377 ▪ 630K TONNES Operating 19 9 (19) (76) income 1 65 K TONNES
OUR GOALS PHOSPHATE SOLUTIONS
Innovative Ag Solutions
ICL ’ s Leadership in the Specialty Fertilizers Market
ICL Specialty Fertilizers: Our Strengths ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Our Core Markets and Products Today
Specialty Fertilizers and Bio Solutions Have Became An Important Part of the Ag Input ~$150bn
THE PERFECT STORM 2 B MORE PEOPLE GROUNDBREAKING GROW MORE CHANGE SOLUTIONS WITH LESS WITHIN 20 YEARS
INNOVATIVE AG SOLUTIONS GROWTH PORTFOLIO UNIQUE R&D CAPABILITIES INNOVATION DIGITAL TRANSFORMATION GET CLOSER TO GROWER
ICL AIMS TO OFFER FARMERS CUTTING-EDGE SOLUTIONS
LEADERSHIP STRATEGY PRESENT&FUTURE POTASH
THA THANK YOU NK YOU visit us at www.icl-group.com
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