INVESTOR PRESENTATION January 2019 IMPORTANT LEGAL NOTES ICL- AT A - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION January 2019 IMPORTANT LEGAL NOTES ICL- AT A - - PowerPoint PPT Presentation

Jun 12, 2023 215 likes •952 views

INVESTOR PRESENTATION January 2019 IMPORTANT LEGAL NOTES ICL- AT A GLANCE $5.4 B 49 ~11,000 TOP 3 $ 7 .2 B < 3% #2 BBB- ICL- 90 YEARS OF HISTORY Establishing & growing operations Consolidating & expanding Focusing on innovation

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SLIDE 1

INVESTOR PRESENTATION

January 2019

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IMPORTANT LEGAL NOTES

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49 $5.4B $7.2B #2

TOP 3

~11,000

ICL- AT A GLANCE

<3%

BBB-

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ICL- 90 YEARS OF HISTORY

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

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Production site Sales & marketing office

35%* 25% 1% 22% 12%

* Percentage of sales by main geographical areas, 2017

LEADING GLOBAL COMPANY

2% 3%

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proximity to ports & customers

STRATEGIC LOCATIONS

innovation

STARTUP NATION

accumulated over decades

KNOW-HOW UNIQUE ASSETS

ICL – STRATEGIC ADVANTAGES

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

DNA OF LEADERSHIP

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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 GOVERMANCE

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SUSTAINABILITY 99% $115M

#2

89%

SILVER RANKING TfS

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PRESENT

LEADERSHIP STRATEGY

POTASH IAS

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essential ingredients

LEADERSHIP STRATEGY

PRESENT

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

POTASH IAS

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ICL BUSINESS LEADERSHIP

Potash Business Costs by Site and by Company2

ICL 24%

ICL

Dead Sea

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

ICL

POTASH IAS

(Dead Sea) 40% Albemarle (Dead Sea) 16% USA (ALB, LXS) 23% Chinese producers 11% Others 11%

Global Bromine Production Capacity1

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ORGANIZATIONAL STRUCTURE ALIGNED WITH STRATEGY

Phosphate Solutions division1 Potash division1 Industrial Products division1 IAS - Innovative Ag Solutions division1

POTASH IAS

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LEADERSHIP STRATEGY

FUTURE

POTASH

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LEADERSHIP STRATEGY

POTASH

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INDUSTRIAL PRODUCTS

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THE GLOBAL BROMINE MARKET LEADER 180K TONNES

NO.1

SOLID LEADERSHIP

230K TONNES

NO.1

BROMINE PRICES IN CHINA

INDUSTRIAL PRODUCTS

UNIQUE ADVANTAGE

2,600 3,100 3,600 4,100 4,600 5,100
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SLIDE 18

MAIN GOALS

A WORLD LEADER AND BEYOND

INDUSTRIAL PRODUCTS

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LEADERSHIP STRATEGY

POTASH

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INCREASE YIELDS AND FEED THE WORLD

POTASH

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100 200

World Crop Production in 2005- 2007 Expansion of Arable Land Crop Rotation Increase in Yields World Crop Production in 2050

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)
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SLIDE 22

ICL’S UNIQUE POSITION

4.8 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

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ICL’S UNIQUE POSITION

4.8 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

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POTASH OUR GOALS TOP-3

5MT

10%

1M

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LEADERSHIP STRATEGY

POTASH

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PHOSPHATE SOLUTIONS - FOOD

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

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

  • INDUSTRIAL

PHOSPHATE SOLUTIONS

Water treatment

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UNIQUE BACKWARD INTEGRATION MODEL ~4,900K TONNES

~90% of phosphate rock

AND VALUABLE INNOVATIVE PRODUCTS

ICL’S RECIPE FOR LEADERSHIP PHOSPHATE SOLUTIONS

1,150K TONNES 280K TONNES

ICL 24%

WITH A LEADING MARKET POSITION

Source: ICL estimates (2017)

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

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OUR GOALS PHOSPHATE SOLUTIONS

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LEADERSHIP STRATEGY

POTASH

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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 F ertilizers Solubles / Straights Liquids SRF CRF Solubl e NPK MAP/ MKP SOP/CN NOP Bulk Liquids F
  • liar
Liquids ICL-SF ^ ^ ^ ^ ^ ^ Compo ^ ^ ^ ^ Haifa ^ ^ ^ ^ Y ARA ^ ^ ^ SQM ^ ^ ^ ^ Kingenta ^ ^ ^ ^
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THE FARMING OF THE FUTURE: WITH INCREASING PRESSURE TO EXPAND PRODUCTION AND PROTECT OUR ENVIRONMENT, HIGH TECH FARMING TECHNOLOGIES WILL PLAY A CRUCIAL ROLE

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ACADEMIC TECHNOLOGICAL BUSINESS

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

TARANIS

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THE PERFECT STORM

CHANGE GROW MORE WITH LESS GROUNDBREAKING SOLUTIONS

2B MORE PEOPLE

WITHIN 20 YEARS

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ICL AIMS TO OFFER FARMERS CUTTING-EDGE SOLUTIONS

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INNOVATIVE AG SOLUTIONS

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

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PRESENT&FUTURE

LEADERSHIP STRATEGY

POTASH

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IS ON THE VERGE OF A TIPPING POINT ICL

DEBT OPTIMIZATION SHARE OVERHANG REMOVED IMPROVING MARKET CONDITIONS ALIGNED ORGANIZATION POSITIVE BUSINESS MOMENTUM GROWTH STRATEGY

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THANK YOU

visit us at www.icl-group.com

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Appendix

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Financial Overview

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Additional Data Regarding Aligned Divisions

Sales FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Potash 1,515 273 299 351 415 1,338 283 314 372 414 1,383 353 346 409 Phosphate Solutions 2,049 556 584 548 498 2,186 523 507 520 487 2,037 533 541 530 Industrial Products (Bromine) 1,034 268 294 275 283 1,120 310 291 289 303 1,193 317 331 328 Innovative Ag Solutions 680 188 189 147 137 661 192 190 154 156 692 221 212 161 Setoffs and eliminations (239) (59) (55) (53) (34) (202) (48) (48) (46) (53) (196) (53) (59) (57) Sub-Total 5,039 1,226 1,311 1,268 1,299 5,103 1,260 1,254 1,289 1,307 5,109 1,371 1,371 1,371 Divested businesses' contribution 366 39 66 115 39 260 35 68 151 54 309 33

  • Total Sales - ICL

5,405 1,265 1,377 1,383 1,338 5,363 1,295 1,322 1,440 1,361 5,418 1,404 1,371 1,371 Profit FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Potash 637 50 64 75 93 282 37 61 65 119 282 62 76 97 Phosphate Solutions 340 65 70 48 41 224 37 37 52 23 149 52 55 63 Industrial Products (Bromine) 225 62 71 77 76 286 77 76 77 73 303 78 94 95 Innovative Ag Solutions 63 20 23 7 5 55 20 19 9 8 56 25 23 7 G&A & other (349) (86) (91) (92) (84) (353) (64) (65) (64) (73) (266) (72) (60) (62) Sub-Total 916 111 137 115 131 494 107 128 139 150 524 145 188 200 Divested businesses' contribution 78 4 26 49 9 88 9 25 76 18 128 6 Total - adjusted operating income - ICL 994 115 163 164 140 582 116 153 215 168 652 151 188 200

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Q3 2018 HIGHLIGHTS

Sequential sales were flat Operating income up by 9%. Net income up by 54% Operating income excluding divested businesses(1)increased by 43% EPS was 10 cents compared to 7 cents in Q3 2017 and 8 cents in Q2 2018 Focus on cash flow generation Dividend distribution for Q3 increased by 20%

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Q3 2018 Results Summary

Sales 1,371 1,371 1,440 (5)% Sales pro-forma(2) 1,362 1,371 1,280 7% Operating income reported 172 196 180 9% Operating income adjusted(1) 188 200 215 (7)% Operating income Adj. (1) Pro- forma(2) 190 200 140 43% Net income reported 101 129 84 54% Net income adjusted(1) 113 134 115 17% Net income Adj. (1) Pro-forma(2) 115 134 70 91% Operating cash flow 164 196 176 11% Net debt 2,267 2,205 3,264 (32)%

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Effective Tax Rate

$ millions

Q3 18 FY2017

Adjusted income before tax(1) 179 528 Normalized tax rate (including resource tax) 23% 25% Normalized tax expenses 42 136 Carryforward losses not recorded for tax purposes 4 19 Sub-T

  • tal

46 155 Sub-T

  • tal - %

26% 29% Other items (mainly exchange rate impact) 1 1 Adjusted income tax 47 156 Actual Effective tax rate 26% 30%

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Reconciliation Tables

Calculation of Adjusted income before tax ($ millions)

Q3 18 FY2017

Adjusted operating income 200 652 Finance expenses (23) (124) Share in earnings (losses) of equity-accounted investees and adjustments to financial expenses 2

  • Adjusted income before tax

179 528 Calculation of Pro-forma Adjusted operating income ($ millions)

Q3 18 Q3 17

Operating income 196 180 Adjustments(1) 4 35 Adjusted operating income 200 215 Divested businesses’ profit

  • (75)

Pro-forma Adjusted operating income 200 140 Calculation of Pro-forma Adjusted net income ($ millions)

Q3 18 Q3 17

Net income 129 84 Adjustments(1) 5 31 Divested businesses’ operating income

  • (75)

Allocated tax and finance expenses for divested businesses

  • 30

Pro-forma Adjusted net income 134 70

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2018 2019 2020 2021 2022 2023 2024 2025 2026 2038

91 244 17 207 267 118 470 46 600 348

Loans & debentures Securitization

Successful Optimization of Debt Structure

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Decreasing Net Debt/EBITDA Ratio

1.63 2.49 2.37 3.11 2.87 2.00 2013 2014 2015 2016 2017 Sep 30, 2018

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Industrial Products

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ICL-IP Product Supply Chains

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Global Trends and Major End Markets

FURNITURE & TEXTILE TRANSPORTATION WATER TREATMENT CONSTRUCTION INTERMEDIATES FOR FOOD, PHARMA, AGRO and Other OIL & GAS POWER PLANTS ELECTRONICS

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Major Trends and ICL Solutions

Trends ICL’s Solutions

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Potash

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Total Fertilizer Use by Crop at Global Level

Source: IFA- Assessment of Fertilizer Use by Crop at the Global Level
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World Main Crops Long Term Forecast Consumption, Stock and Stock to Use Ratio

Source: OECD-FAO Agricultural Outlook 2017-2026 (Jul 2017)
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World Grains Production & Consumption: Current Stock to Use Ratio

Sources: USDA (updated Nov. 2018)
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ICL’s Potash Market Share in Fast Growing Markets

18%

Canpotex Uralkali APC 26% 17% 22% 7%

12%

Russia Belarus Canada Jordan ICL 29% 17% 6% 22%

13%

Canpotex Uralkali SQM 10% 25% 25%

16%

20%

4%

APC BPC Canpotex ICL Uralkali K+S 5% 20% 23% 9% 29%

14%

SQM BPC Uralkali K+S Canpotex ICL 20% 23% 31%

12%

9%5% Uralkali BPC Canpotex ICL APC Others

India Brazil China

Sources: ANDA, Chinese Customs, Fertilizer Association
  • f India
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Positive Potash Spot Pricing trend

ICL’S AVG. FOB POTASH PRICE DEVELOPMENT

170 190 210 230 250 270 290

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ICL UK: The World’s Only Producer of Polysulphate

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Phosphate Solutions

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Phosphate Solutions: Backward Integrated Value Chain

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Phosphoric Acid Pricing Trends

500 550 600 650 700 750 800 850 80 85 90 95 100 105

%

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We Have Built a World-Class Advanced Additives Portfolio

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Vast Product Portfolio Serving a Variety of End Food Additives Markets

  • Development of customer solutions to

improve texture and stability, as well as innovations for low-sodium salts and meatless applications

  • Continued development of

applications to optimize the leaving and texture in bakery products

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Food Specialties: Markets and Competition

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Innovative Ag Solutions

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Building Leadership in Advanced Crop Nutrition Solutions

R&D Infrastructure Precision Ag Business Development

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ICL’s Leadership in the Specialty Fertilizers Market

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ICL Specialty Fertilizers: Our Strengths

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Our Core Markets and Products Today

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

~$150bn

1 Calcium, Magnesium and Sulfate 2 iron, cobalt, chromium, copper, iodine, manganese, selenium, zinc and molybdenum
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Leveraging Precision Ag to Grow Sales

a