INVESTOR PRESENTATION
IMPORTANT LEGAL NOTES
ICL- AT A GLANCE $5.6 B 44 ~11,000 TOP 3 (1) $5.7 B >4.0% #2 BBB-
DNA OF LEADERSHIP #1 #3 #1 #1 #1 #1
LEADERSHIP STRATEGY PRESENT IAS POTASH
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 cost by Site and by Company 2 ICL Dead IAS Sea POTASH
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
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 FUTURE POTASH
Q3 2019 SUMMARY
Q3 2019 Highlights ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Q3 2019 Results Summary
Q3 2019 KEY TAKEAWAYS
LEADERSHIP STRATEGY POTASH
INDUSTRIAL PRODUCTS
INDUSTRIAL PRODUCTS SOLID LEADERSHIP THE GLOBAL BROMINE UNIQUE BROMINE PRICES MARKET LEADER ADVANTAGE IN CHINA 175 K TONNES NO. 1 240K TONNES NO . 1
INDUSTRIAL PRODUCTS MAIN GOALS A WORLD LEADER AND BEYOND
LEADERSHIP STRATEGY POTASH
POTASH INCREASE YIELDS AND FEED THE WORLD
POTASH 11 0.48 10 9 0.40 8 7 0.32 6 200 5 0.24 4 100 10 3 0.16 1961 1972 1983 1994 2005 2016 2027E 2038E 2049E Wo Worl rld C Crop rop P Produc roduction on Expansi sion on o of A Ara rable Crop Ro Rota tati tion on Incr crease se i in Yi Yields ds Worl Wo rld C Crop rop P Produc roduction on in 2 2005-20 -2007 Land La in 2 2050 50 World population (Bn) Arable land (Ha/Person)
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 OUR GOALS TOP- 3 5 MT 10% 1 M
LEADERSHIP STRATEGY POTASH
PHOSPHATE SOLUTIONS - FOOD TASTE & ESSENTIAL BITE MOUTH FEEL TEXTURE & RISE MINERALS LAST LONGER
PHOSPHATE SOLUTIONS - INDUSTRIAL Oil drilling Oral care Metals Mining Cleaning products Leather Construction Paints & coatings Asphalt Water treatment
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)
OUR GOALS PHOSPHATE SOLUTIONS
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
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
LEADERSHIP STRATEGY PRESENT&FUTURE POTASH
THANK 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, 2018
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
SUSTAINABILITY SILVER ranking $121 M Sustainable Procurement Success in Emission Reduction Top-Tier Environmental & Safety ‘ Platinum+ ’ Ranking Management
Growth trend in Most Main Operational Parameters 300 18% 30% 300 350 16% 250 25% 300 250 14% 200 12% 250 20% 200 10% 200 150 15% 150 8% 150 100 6% 10% 100 100 4% 50 5% 50 50 2% 0 0% 0 0% 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
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
Effective Tax Rate Exchange rate impact and other items Adjusted tax expenses
Segment Profit Before and After G&A Expenses 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 Industrial Products (Bromine) Profit before allocated G&A expenses 77 76 77 73 303 78 94 95 83 350 108 105 99 Allocated G&A expenses (income) 11 17 14 14 56 12 13 12 13 50 11 12 11 Segment profit 66 59 63 59 247 66 81 83 70 300 97 93 88 Potash Profit before allocated G&A expenses 37 61 65 119 282 62 76 97 158 393 98 123 99 Allocated G&A expenses (income) 21 21 21 21 84 19 20 19 20 78 19 18 16 Segment profit 16 40 44 98 198 43 56 78 138 315 79 105 83 Phosphate Solutions Profit before allocated G&A expenses 37 37 52 23 149 52 55 63 38 208 63 58 57 Allocated G&A expenses (income) 26 22 24 24 96 24 24 23 24 95 28 26 25 Segment profit 11 15 28 (1) 53 28 31 40 14 113 35 32 32 Innovative Ag Solutions Profit before allocated G&A expenses 20 19 9 8 56 25 23 7 2 57 21 21 6 Allocated G&A expenses (income) 7 6 7 7 27 7 7 8 6 28 8 9 8 Segment profit 13 13 2 1 29 18 16 (1) (4) 29 13 12 (2) Other & elimination Profit before allocated G&A expenses 2 - (4) (3) (5) (2) 4 2 (5) (1) 14 (12) 2 Allocated G&A expenses (income) 1 (1) (6) 4 (2) 8 (2) 1 (1) 6 (3) - 2 Segment profit 1 1 2 (7) (3) (10) 6 1 (4) (7) 17 (12) - ICL Total adjusted operating income before G&A expenses 173 193 199 220 785 215 252 264 276 1,007 304 295 263 G&A expenses 66 65 60 70 261 70 62 63 62 257 63 65 62 Adjusted operating income - excl. divestments 107 128 139 150 524 146 190 200 214 750 241 230 201 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
Peer Comparison YTD 2019
RECENT DEVELOPMENTS @ ICL ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
RECENT DEVELOPMENTS @ ICL ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
RECENT DEVELOPMENTS @ ICL ✓ ✓ ✓
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
Potash
Total Fertilizer Use by Crop at Global Level
World Main Crops Long Term Forecast Consumption, Stock and Stock to Use Ratio Consumption
World Grains Production & Consumption: Current Stock to Use Ratio Billion Tonne
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