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 and in Israel globally solidifying leadership 1920 s - 1970 s 1970 s - 2014 2000 s -
LEADING GLOBAL COMPANY 35%* 22% 25% 3 % 1 % 12% 2 % Production site Sales & marketing office * Percentage of sales by main geographical areas, 2017
ICL – STRATEGIC ADVANTAGES UNIQUE STRATEGIC STARTUP KNOW-HOW ASSETS LOCATIONS NATION proximity to ports & accumulated over customers decades innovation
DNA OF LEADERSHIP #1 #3 #1 #1 #1 #1
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 GOVERMANCE ENVIROMENTAL OUR CUSTOMERS RESPONSIBILITY
SUSTAINABILITY # 2 $115 M 99% SILVER RANKING 89% TfS
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 11% (Dead Sea) 40% USA (ALB, LXS) 23% Albemarle (Dead Sea) 16% Potash Business Costs by Site and by Company 2 ICL Dead IAS Sea POTASH
ORGANIZATIONAL STRUCTURE ALIGNED WITH STRATEGY IAS - Innovative Ag Solutions division 1 Phosphate Solutions division 1 Potash division 1 Industrial Products division 1 IAS POTASH
LEADERSHIP STRATEGY FUTURE POTASH
LEADERSHIP STRATEGY POTASH
INDUSTRIAL PRODUCTS
INDUSTRIAL PRODUCTS SOLID LEADERSHIP THE GLOBAL BROMINE UNIQUE BROMINE PRICES MARKET LEADER ADVANTAGE IN CHINA 5,100 180 K TONNES 4,600 4,100 NO. 1 3,600 3,100 2,600 230K 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 0.32 200 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)
POTASH ICL ’ S UNIQUE POSITION WELL ESTABLISHED IN LOWER COST AND FASTER STRONG POSITION GROWING MARKETS TIME-TO-MARKET 4.8 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 4.8 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 ~4,900 K TONNES Market Share – Specialty Phosphates – Europe, NA, and LatAm 1 ICL ~90% of phosphate rock 24% 1,150 K TONNES 280 K TONNES Source: ICL estimates (2017)
OUR GOALS PHOSPHATE SOLUTIONS
LEADERSHIP STRATEGY POTASH
INNOVATIVE AG SOLUTIONS CREATING LEADERSHIP SPECIALTY FERTILIZERS - THE DIVERSIFIED PORTFOLIO FAST GROWING INDUSTRY FOUNDATION FOR THE FUTURE ~850 K TONNES Coated Solubles / Straights Liquids F ertilizers Solubl MAP/ Bulk F oliar SRF CRF SOP/CN NOP e NPK MKP Liquids Liquids 1.8 ^ ICL-SF ^ ^ ^ ^ ^ OVER 300 3.2 ^ Compo ^ ^ ^ Haifa ^ ^ ^ ^ 0.4 1.8 ^ Y ARA ^ ^ 25 YEARS SQM ^ ^ ^ ^ Kingenta ^ ^ ^ ^ FASTEST GROWING
THE FARMING OF THE FUTURE: WITH INCREASING PRESSURE TO EXPAND PRODUCTION AND PROTECT OUR ENVIRONMENT, HIGH TECH FARMING TECHNOLOGIES WILL PLAY A CRUCIAL ROLE
IAS LEVERAGING ISRAEL'S HIGH-TECH AND AGRI-TECH ECO SYSTEM ACADEMIC TECHNOLOGICAL BUSINESS TARANIS
THE PERFECT STORM 2 B MORE PEOPLE GROUNDBREAKING GROW MORE CHANGE SOLUTIONS WITH LESS WITHIN 20 YEARS
ICL AIMS TO OFFER FARMERS CUTTING-EDGE SOLUTIONS
INNOVATIVE AG SOLUTIONS GROWTH PORTFOLIO UNIQUE R&D CAPABILITIES INNOVATION DIGITAL TRANSFORMATION GET CLOSER TO GROWER
LEADERSHIP STRATEGY PRESENT&FUTURE POTASH
ICL IS ON THE VERGE OF A TIPPING POINT POSITIVE BUSINESS IMPROVING MARKET SHARE OVERHANG MOMENTUM CONDITIONS REMOVED GROWTH STRATEGY DEBT OPTIMIZATION ALIGNED ORGANIZATION
THANK YOU visit us at www.icl-group.com
Appendix
Financial Overview
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 0 0 Total - adjusted operating income - ICL 994 115 163 164 140 582 116 153 215 168 652 151 188 200
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%
Q3 2018 Results Summary 1,371 1,371 1,440 (5)% Sales 1,371 1,362 1,280 7% Sales pro-forma (2) 172 196 180 9% Operating income reported 200 188 215 (7)% Operating income adjusted (1) Operating income Adj. (1) Pro- 190 200 140 43% forma (2) 129 Net income reported 101 84 54% 113 134 115 17% Net income adjusted (1) Net income Adj. (1) Pro-forma (2) 115 134 70 91% 164 196 176 11% Operating cash flow 2,267 2,205 3,264 (32)% Net debt
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 otal 46 155 Sub-T otal - % 26% 29% Other items (mainly exchange rate impact) 1 1 Adjusted income tax 47 156 Actual Effective tax rate 26% 30%
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 2 - expenses 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 35 200 215 Adjusted operating income 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
Successful Optimization of Debt Structure 600 348 470 267 244 207 118 91 46 17 2018 2019 2020 2021 2022 2023 2024 2025 2026 2038 Loans & debentures Securitization
Decreasing Net Debt/EBITDA Ratio 3.11 2.87 2.49 2.37 2.00 1.63 2013 2014 2015 2016 2017 Sep 30, 2018
Industrial Products
ICL-IP Product Supply Chains
Recommend
More recommend
