INVESTOR PRESENTATION IMPORTANT LEGAL NOTES ICL- AT A GLANCE $5.3 B - - PowerPoint PPT Presentation

▶
investor presentation important legal notes
SMART_READER_LITE
LIVE PREVIEW

INVESTOR PRESENTATION IMPORTANT LEGAL NOTES ICL- AT A GLANCE $5.3 B - - PowerPoint PPT Presentation

Apr 20, 2023 250 likes •1.09k views

INVESTOR PRESENTATION IMPORTANT LEGAL NOTES ICL- AT A GLANCE $5.3 B 44 ~11,000 TOP 3 (1) $5.5 B >4.0% #2 BBB- LEADING GLOBAL COMPANY 35 35%* %* 22 22% 3% 25 25% 1% 12 12% 2% Sales & marketing office Production site *

slide-1
SLIDE 1

INVESTOR PRESENTATION

slide-2
SLIDE 2

IMPORTANT LEGAL NOTES

slide-3
SLIDE 3

44 $5.3B $5.5B #2

TOP 3

~11,000

ICL- AT A GLANCE

>4.0%

(1)

BBB-

slide-4
SLIDE 4

Production site Sales & marketing office

35 35%* %* 1% 22 22% 12 12%

* Percentage of sales by main geographical areas, 2018

LEADING GLOBAL COMPANY

2% 3% 25 25%

slide-5
SLIDE 5

proximity to ports & customers

STRATEGIC LOCATIONS

innovation

STARTUP NATION

accumulated over decades

KNOW-HOW UNIQUE ASSETS

ICL – STRATEGIC ADVANTAGES

slide-6
SLIDE 6

#1 #1 #1 #1 #1 #3

DNA OF LEADERSHIP

slide-7
SLIDE 7

PRESENT

LEADERSHIP STRATEGY

POTASH IAS

slide-8
SLIDE 8

essential ingredients

LEADERSHIP STRATEGY

PRESENT

Phosphate Solutions division Potash division Industrial Products division IAS - Innovative Ag Solutions division

POTASH IAS

slide-9
SLIDE 9

ICL BUSINESS LEADERSHIP

Potash business cost cost by Site and by Company2

ICL 24%

ICL

Dead Sea

Market Share – Specialty Phosphates – Europe, NA, and LatAm1

ICL

POTASH IAS

(Dead Sea) 39% Albemarle (Dead Sea) 17% USA (ALB, LXS) 23% Chinese producers 10% Others 11%

Global Bromine Production Capacity1

slide-10
SLIDE 10

ORGANIZATIONAL STRUCTURE ALIGNED WITH STRATEGY

Phosphate Solutions division1,2 Industrial Products division1 IAS - Innovative Ag Solutions division1

POTASH IAS

Potash division1

slide-11
SLIDE 11

LEADERSHIP STRATEGY

FUTURE

POTASH IAS

PRESENT

slide-12
SLIDE 12

LEADERSHIP STRATEGY

POTASH

slide-13
SLIDE 13

INDUSTRIAL PRODUCTS

slide-14
SLIDE 14

THE GLOBAL BROMINE MARKET LEADER 175K TONNES

NO.1

SOLID LEADERSHIP

240K TONNES

NO.1

BROMINE PRICES IN CHINA

INDUSTRIAL PRODUCTS

UNIQUE ADVANTAGE

slide-15
SLIDE 15

MAIN GOALS

A WORLD LEADER AND BEYOND

INDUSTRIAL PRODUCTS

slide-16
SLIDE 16

LEADERSHIP STRATEGY

POTASH

slide-17
SLIDE 17

INCREASE YIELDS AND FEED THE WORLD

POTASH

slide-18
SLIDE 18

10 100 200

Wo Worl rld C Crop rop P Produc roduction
  • n
in 2 2005-20
  • 2007
Expansi sion
  • n o
  • f A
Ara rable La Land Crop Ro Rota tati tion
  • n
Incr crease se i in Yi Yields ds Wo Worl rld C Crop rop P Produc roduction
  • n
in 2 2050 50

POTASH

0.16 0.24 0.32 0.40 0.48 3 4 5 6 7 8 9 10 11 1961 1972 1983 1994 2005 2016 2027E 2038E 2049E World population (Bn) Arable land (Ha/Person)
slide-19
SLIDE 19

ICL’S UNIQUE POSITION

4.9 MILLION TONNES

STRONG POSITION

POTASH

80% PRODUCED FROM

THE DEAD SEA

WELL ESTABLISHED IN GROWING MARKETS LOWER COST AND FASTER TIME-TO-MARKET

NO.6

slide-20
SLIDE 20

ICL’S UNIQUE POSITION

4.9 MILLION TONNES

STRONG POSITION

POTASH

LOWER COST AND FASTER TIME-TO-MARKET

China India IL Europe Brazil US

WELL ESTABLISHED IN GROWING MARKETS

80% PRODUCED FROM

THE DEAD SEA NO.6

slide-21
SLIDE 21

POTASH OUR GOALS TOP-3

5MT

10%

1M

slide-22
SLIDE 22

LEADERSHIP STRATEGY

POTASH

slide-23
SLIDE 23

PHOSPHATE SOLUTIONS - FOOD

ESSENTIAL MINERALS BITE TASTE & MOUTH FEEL TEXTURE & LAST LONGER RISE

slide-24
SLIDE 24

Oil drilling Mining Oral care Cleaning products Metals Leather Construction Asphalt Paints & coatings

  • INDUSTRIAL

PHOSPHATE SOLUTIONS

Water treatment

slide-25
SLIDE 25

UNIQUE BACKWARD INTEGRATION MODEL 5M TONNES

Over 90% of phosphate rock

AND VALUABLE INNOVATIVE PRODUCTS

ICL’S RECIPE FOR LEADERSHIP PHOSPHATE SOLUTIONS

1.2M TONNES 290K TONNES

ICL 24%

WITH A LEADING MARKET POSITION

Source: ICL estimates (2017)

Market Share – Specialty Phosphates – Europe, NA, and LatAm1

slide-26
SLIDE 26

OUR GOALS PHOSPHATE SOLUTIONS

slide-27
SLIDE 27

LEADERSHIP STRATEGY

POTASH

slide-28
SLIDE 28

0.4 1.8

FAST GROWING INDUSTRY

1.8 3.2

SPECIALTY FERTILIZERS - THE FOUNDATION FOR THE FUTURE ~850K TONNES

OVER 300

INNOVATIVE AG SOLUTIONS CREATING LEADERSHIP

FASTEST GROWING DIVERSIFIED PORTFOLIO

25 YEARS

Coated Fertilizers Solubles / Straights Liquids SRF CRF Solubl e NPK MAP/ MKP SOP/CN NOP Bulk Liquids Foliar Liquids ICL-SF ^ ^ ^ ^ ^ ^ Compo ^ ^ ^ ^ Haifa ^ ^ ^ ^ YARA ^ ^ ^ SQM ^ ^ ^ ^ Kingenta ^ ^ ^ ^
slide-29
SLIDE 29

THE PERFECT STORM

CHANGE GROW MORE WITH LESS GROUNDBREAKING SOLUTIONS

2B MORE PEOPLE

WITHIN 20 YEARS

slide-30
SLIDE 30

INNOVATIVE AG SOLUTIONS

UNIQUE R&D CAPABILITIES GET CLOSER TO GROWER PORTFOLIO GROWTH INNOVATION DIGITAL TRANSFORMATION

slide-31
SLIDE 31

PRESENT&FUTURE

LEADERSHIP STRATEGY

POTASH

slide-32
SLIDE 32

Q4 2019 SUMMARY

slide-33
SLIDE 33

Q4 and FY2019 Highlights(1)

✓ ✓ ✓ ✓ ✓

2018 2019 2018 2019 2018 2019 Q4/2018 Q4/2019 Q4/2018 Q4/2019 Q4/2018 Q4/2019
slide-34
SLIDE 34

Q4 and FY2019 Results Summary(1)

slide-35
SLIDE 35

Annual Growth trend in Most Main Operational Parameters

506 507 750 760

2016 2017 2018 2019

968 904 1,160 1,198

2016 2017 2018 2019

966 847 620 992

2016 2017 2018 2019
slide-36
SLIDE 36

ICL’s Commitment to ESG

slide-37
SLIDE 37

2019 Achievements Position ICL for the Next Decade

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

✓

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

slide-38
SLIDE 38

MARCH

LONDON

18, 2020

Pleas Please join u e join us at s at the the

Investor Day Investor Day

MARCH

NEW YORK CITY

19, 2020

MARCH

TEL AVIV

22, 2020

slide-39
SLIDE 39

THA THANK YOU NK YOU

visit us at www.icl-group.com

slide-40
SLIDE 40

Appendix

slide-41
SLIDE 41

ICL- 90 YEARS OF HISTORY

Focusing on innovation and solidifying leadership 2000s - Establishing & growing operations in Israel 1920s - 1970s Consolidating & expanding globally 1970s - 2014

slide-42
SLIDE 42

CORE VALUES

TOP TIER SAFETY PERFORMANCE AND ENVIROMENTAL RESPONSIBILITY EMPLOYER OF CHOICE LEVERAGING TECHNOLOGY AND INDUSTRIAL KNOW HOW TO MEET THE NEEDS OF OUR CUSTOMERS ADOPTING BEST PRACTICES FOR CORPORATE GOVERNANCE

slide-43
SLIDE 43

SUSTAINABILITY

Success in Emission Reduction

$121M

Top-Tier Environmental & Safety Management SILVER ranking Sustainable Procurement ‘Platinum+’ Ranking

slide-44
SLIDE 44

Decreasing Net Debt/EBITDA Ratio

slide-45
SLIDE 45

Successful Optimization of Debt Structure

2020 2021 2022 2023 2024 2025-30 2031-33 2034 2038 313 123 124 736 46 600 261

Loans & debentures Securitization 2020 G series bond Debt repayment

slide-46
SLIDE 46

Effective Tax Rate

Exchange rate impact and other items Adjusted tax expenses

slide-47
SLIDE 47 Operating Income Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Industrial Products (Bromine) Profit before allocated G&A expenses 77 76 77 73 303 78 94 95 83 350 108 105 99 72 384 Allocated G&A expenses (income) 11 17 14 14 56 12 13 12 13 50 11 12 11 12 46 Segment profit 66 59 63 59 247 66 81 83 70 300 97 93 88 60 338 Potash Profit before allocated G&A expenses 37 61 65 119 282 62 76 97 158 393 98 123 99 41 361 Allocated G&A expenses (income) 21 21 21 21 84 19 20 19 20 78 19 18 16 19 72 Segment profit 16 40 44 98 198 43 56 78 138 315 79 105 83 22 289 Phosphate Solutions Profit before allocated G&A expenses 37 37 52 23 149 52 55 63 38 208 63 58 57 28 206 Allocated G&A expenses (income) 26 22 24 24 96 24 24 23 24 95 28 26 25 27 106 Segment profit 11 15 28 (1) 53 28 31 40 14 113 35 32 32 1 100 Innovative Ag Solutions Profit before allocated G&A expenses 20 19 9 8 56 25 23 7 2 57 21 21 6 6 54 Allocated G&A expenses (income) 7 6 7 7 27 7 7 8 6 28 8 9 8 8 33 Segment profit 13 13 2 1 29 18 16 (1) (4) 29 13 12 (2) (2) 21 Other & elimination Profit before allocated G&A expenses 2
  • (4)
(3) (5) (2) 4 2 (5) (1) 14 (12) 2 5 9 Allocated G&A expenses (income) 1 (1) (6) 4 (2) 8 (2) 1 (1) 6 (3)
  • 2
(2) (3) Segment profit 1 1 2 (7) (3) (10) 6 1 (4) (7) 17 (12)
  • 7
12 ICL Total adjusted operating income before G&A expenses 173 193 199 220 785 215 252 264 276 1,007 304 295 263 152 1,014 G&A expenses 66 65 60 70 261 70 62 63 62 257 63 65 62 64 254 Adjusted operating income - excl. divestments 107 128 139 150 524 146 190 200 214 750 241 230 201 88 760 Divested businesses' contribution* 9 25 76 18 128 5 (2)
  • 3
  • Adjusted operating income
116 153 215 168 652 151 188 200 214 753 241 230 201 88 760

Segment Profit Before and After G&A Expenses

slide-48
SLIDE 48

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

RECENT DEVELOPMENTS @ ICL

slide-49
SLIDE 49

RECENT DEVELOPMENTS @ ICL

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

slide-50
SLIDE 50

RECENT DEVELOPMENTS @ ICL

✓ ✓ ✓

slide-51
SLIDE 51

Industrial Products

slide-52
SLIDE 52

Industrial Products Geographical Sales Distribution

slide-53
SLIDE 53

Industrial Products Sales Distribution

slide-54
SLIDE 54

Industrial Products Supply Chain

slide-55
SLIDE 55

Flame Retardants 41%

Brominated
  • rganic
intermediates & Industrial 34% Clear brine fluids 15% Biocides 7% Mercury Control 4% 280 280 120 120 170 165 70 50 80 90 2018 2023

Industrial Products Leading the Global Bromine Market

slide-56
SLIDE 56

Major Trends and ICL Solutions

Trends ICL’s Solutions

slide-57
SLIDE 57

Potash

slide-58
SLIDE 58

Total Fertilizer Use by Crop at Global Level

slide-59
SLIDE 59

World Main Crops Long Term Forecast Consumption, Stock and Stock to Use Ratio

Consumption

slide-60
SLIDE 60

World Grains Production & Consumption: Current Stock to Use Ratio

slide-61
SLIDE 61

ICL’s Potash Market Share in Fast Growing Markets

12% 34% 27%

12%

11% 4% APC BPC Canpotex ICL Uralkali K+S 2% 21% 24% 7% 36%

10%

Others BPC Russia APC Canpotex ICL 28% 18% 29%

10%

14%

1%

Uralkali BPC Canpotex ICL K+S SQM 31% 16% 13% 23%

15%

2% Canpotex Uralkali APC BPC ICL K & S 30% 24% 2% 19%

12%

13% Canpotex Uralkali SQM BPC ICL K&S 21% 19% 38% 4%

11%

3% 4% Uralkali BPC Canpotex APC ICL K+S Other
slide-62
SLIDE 62

Potash Spot Pricing trend

slide-63
SLIDE 63

ICL UK: The World’s Only Producer of Polysulphate

▪ ▪ ▪ ▪ ▪ ▪

slide-64
SLIDE 64

Phosphate Solutions

slide-65
SLIDE 65

Phosphate Solutions: Backward Integrated Value Chain

slide-66
SLIDE 66

Phosphoric Acid Pricing Trends

slide-67
SLIDE 67

2.5M TONNES 480K TONNES TARGETING A SHIFT TOWARDS SPECIALTIES ▪ ▪ 630K TONNES 65K TONNES

Growth in production, improving market conditions and efficiency measures resulted in a pos

  • sitive

itive oper

  • perat

atin ing g in income come1 in in 2018 2018

GROWING PRODUCTION AND FINANCIAL METRICS UNIQUE BACKWARD INTEGRATION MODEL

YPH JV – ICL’s Integrated Phosphate Platform in China

2016 2017 2018 Q3’19 YTD

$ million

377 363 387 273 Sales (76) (19) 9 19 Operating income1

slide-68
SLIDE 68

We Have Built a World-Class Advanced Additives Portfolio

slide-69
SLIDE 69

Vast Product Portfolio Serving a Variety of End Food Additives Markets

slide-70
SLIDE 70

Food Specialties: Markets and Competition

slide-71
SLIDE 71

Innovative Ag Solutions

slide-72
SLIDE 72

ICL’s Leadership in the Specialty Fertilizers Market

slide-73
SLIDE 73

ICL Specialty Fertilizers: Our Strengths

▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

slide-74
SLIDE 74

Our Core Markets and Products Today

slide-75
SLIDE 75

Specialty Fertilizers and Bio Solutions Have Became An Important Part of the Ag Input

~$150bn

slide-76
SLIDE 76

ACADEMIC TECHNOLOGICAL BUSINESS

IAS LEVERAGING ISRAEL'S HIGH-TECH AND AGRI-TECH ECO SYSTEM

TARANIS

slide-77
SLIDE 77

ICL AIMS TO OFFER FARMERS CUTTING-EDGE SOLUTIONS

slide-78
SLIDE 78

THA THANK YOU NK YOU

visit us at www.icl-group.com

slide-79
SLIDE 79 78

Effective Tax Rate

(1) See calculation in the appendix of this presentation
slide-80
SLIDE 80 79

IFRS 16(1) Annual Impact

(1) IFRS 16 is a new accounting standard which replaces IAS 17, leases and its related interpretations. (2) Adjusted operating income, adjusted EBITDA and adjusted net income are non-GAAP measure. See reconciliation table in the Q4 2019 PR and the appendix for this presentation
slide-81
SLIDE 81 80

Reconciliation Tables (1/2)

slide-82
SLIDE 82 81

Reconciliation Tables (2/2)

390 401 155 83