Slide 1: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results Raviv Zoller | President and CEO November 8, 2023
Slide 2: Important legal notes
Important legal notes Disclaimer and safe harbor for forward-looking statements This presentation and/or other oral or written statements made by ICL Group during its presentation, or from time to time, may contain forward-looking statements within the meaning of the United States Private Securities
Slide 3: Third quarter results
Third quarter results Destocking significantly completed, leveraging efficiencies • Sales of $1.86B, flat sequentially • Adjusted EBITDA(1) of $346M, down YoY and vs. 3Q’21 • Strong cash generation, with $407M of operating cash flow and $217M of free cash flow • Diluted EPS of $0.11, with quarterly
Slide 4: Key financial metrics
Key financial metrics Sales Adjusted EBITDA(1) Sales Adjusted EBITDA(1) US$M US$M US$M US$M $7,924 $5,846 $4,917 $3,309 $2,519 $1,790 $1,862 $1,397 $1,049 $1,100 $438 $346 25% 42% 19% 22% 42% 24% 3Q'21 3Q'22 3Q'23 3Q'21 3Q'22 3Q'23 YTD'21 YTD'22 YTD'23 YTD'21 YTD'22 YTD'23 (1) Adjusted EBITDA and ma
Slide 5: Consistent cash generation focus
Consistent cash generation focus Specialties sales Operating and free cash flow(1) Adjusted diluted EPS(1) US$M US$M US$ $606 $273 $407 $1,236 $1,521 $429 $0.49 $1,181 $146 $217 $0.17 $0.11 3Q'21 3Q'22 3Q'23 3Q'21 3Q'22 3Q'23 3Q'21 3Q'22 3Q'23 $4,697 $1,558 $1.55 $3,707 $1,180 $3,341 $721 $1,057 $65
Slide 6: Industrial Products
Industrial Products Sales Key developments US$M • Bromine prices bottomed during third quarter $437 $387 $267 • Destocking significantly completed • Clear brine fluids and specialty minerals strength continued 3Q'21 3Q'22 3Q'23 • Expanding market leadership, leveraging efficient cost position EBITDA
Slide 7: Phosphate Solutions
Phosphate Solutions Sales Key developments US$M $766 $620 • Resilience across Specialties, with EBITDA margin $599 at 2021 level $455 Specialties $345 $364 Commodities • Leveraging efficiency efforts $254 $311 $256 3Q'21 3Q'22 3Q'23 • Global food prices remain favorable EBITDA • LFP battery material
Slide 8: Potash
Potash Sales Key developments $854 US$M • Potash supply sold out for 2023 $526 $400 • Quantities increased to ~1.28Mmt, with higher volumes to Europe, Brazil and China 3Q'21 3Q'22 3Q'23 • Prices stabilizing, with potash CIF price per ton of $342 vs. $679 in 3Q’22 and $335 in 3Q’21 EBITDA US$M • Prod
Slide 9: Growing Solutions
Growing Solutions Sales Key developments US$M • Destocking significantly completed $629 $504 $550 • All-time quarterly free cash flow record • Brazil delivered record volumes and gained market share 3Q'21 3Q'22 3Q'23 • Demand improvement now visible in Europe and China EBITDA US$M $127 $67 $37 13% 2
Slide 10: Remain committed to long-term strategy
Remain committed to long-term strategy Enhancing Growing efficiencies and specialties competitiveness product portfolio Driving Targeting M&A and strong cash flow strategic partnerships 10
Slide 11: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results Aviram Lahav CFO
Slide 12: Macro overview
Macro overview • Inflation moderating but mixed • Interest rates remain elevated • Global growth continues to be subdued • New geopolitical issues • China economic rebound weaker than expected • Grain prices levelling • Fertilizer prices stabilizing 12
Slide 13: Global indicators
Global indicators Inflation Interest rates Rate Percentage 20% 20% USA EU China Brazil Israel USA EU Brazil Israel UK India 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% 2Q'19 3Q'19 1Q'20 1Q'22 1Q'23 4Q'19 1Q'21 1Q'19 2Q'21 3Q'21 4Q'20 4Q'21 3Q'22 4Q'22 2Q'20 3Q'20 2Q'22 2Q'23 3Q'23 2Q'19 3Q'19 4Q'19 1Q'21 1Q
Slide 14: Key market metrics – fertilizers
Key market metrics – fertilizers Grain Price Index Farmer sentiment US¢/bushel Index $2,500 Corn Rice Wheat Soybeans Grain Price Index $2,000 180 $1,500 $1,000 130 $500 $0 80 2Q'19 3Q'19 4Q'19 1Q'20 1Q'21 1Q'22 1Q'23 1Q'19 2Q'20 4Q'20 2Q'21 3Q'21 4Q'21 4Q'22 3Q'20 2Q'22 3Q'22 2Q'23 3Q'23 1Q'21 1Q'19
Slide 15: Key market metrics – electric vehicles
Key market metrics – electric vehicles EV sales forecasts M of units 100 70 64 90 88 85 87 87 86 85 85 84 83 82 82 60 77 78 80 51 52 Penetration rate (percent) 46 50 Cars sold (millions) 40 60 35 52 40 48 31 43 26 38 30 40 34 21 30 16 26 20 13 22 18 20 14 8 11 10 4 2 2 3 6 0 0 2032 2020 2021 2022 20
Slide 16: Sales bridges – third quarter 2023
Sales bridges Third quarter 2023 Sales by segment Sales US$M US$M $2,519 $2,519 $221 ($170) ($146) $66 ($328) $1,862 ($912) $34 $1,862 ($79) $550 GS $620 PS Spec. 59%, Comm. 41% Potash $526 IP $267 3Q'22 3Q'23 Solutions Other Industrial Potash Other Phosphate 3Q'22 3Q'23 Quantity Exchange Products G
Slide 17: Profit bridges – third quarter 2023
Profit bridges Third quarter 2023 Adjusted EBITDA(1) by segment Adjusted EBITDA(1) US$M US$M $77 $1,049 $1,049 ($128) ($122) $10 GS $88 $5 $35 $37 PS Spec. 47%, $30 ($373) ($90) $346 $117 Comm. 53% Potash ($26) $346 $164 ($912) $42 IP 3Q'22 3Q'23 Solutions Industrial Potash Other Phosphate Other Mat
Slide 18: Potash costs and prices
Potash costs and prices Leading positions MOP Industry Cost Curve Potash ASP Cash costs US$/t, excluding royalties, FOB load port US$ $500 $800 $400 $600 $300 $400 $200 ICL DSW $100 $200 $0 $0 0 10 20 30 40 50 1Q'23 1Q'20 1Q'22 1Q'21 2Q'21 3Q'21 4Q'20 4Q'21 4Q'22 2Q'20 3Q'20 2Q'22 3Q'22 2Q'23 3Q'23
Slide 19: Financial overview
Financial overview Driving efficiencies and delivering shareholder returns Highlights • Expanded efficiencies and savings efforts • Reduced SG&A by ~11% • Continued decrease in working capital • Strong cash conversion • Available cash resources of $1.8B • Net debt to adjusted EBITDA(1) of 0.9 • Decl
Slide 20: Thank you
Thank you Co n ta c t Pe g g y. Re i l l y T h a r p @ i c l - g r o u p . co m f o r m o r e i n f o r m a t i o n o n I C L View our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 21: Appendix
Md Appendix Third Quarter 2023
Slide 22: Calculation of segment EBITDA – third quarter 2023
Calculation of segment EBITDA Third quarter of 2023 Industrial Products US$M 3Q’23 3Q’22 3Q’21 Phosphate Solutions US$M 3Q’23 3Q’22 3Q’21 Segment sales $267 $437 $387 Segment sales $620 $766 $599 Segment operating income $31 $154 $105 Segment operating income $69 $193 $88 Segment operating margin 12
Slide 23: Calculation of segment EBITDA – first nine months of 2023
Calculation of segment EBITDA First nine months of 2023 Industrial Products US$M YTD’23 YTD’22 YTD’21 Phosphate Solutions US$M YTD’23 YTD’22 YTD’21 Segment sales $928 $1,417 $1,195 Segment sales $1,939 $2,479 $1,683 Segment operating income $181 $533 $324 Segment operating income $255 $661 $207 Segm
Slide 24: Segment results analysis – third quarter 2023
Segment results analysis Third quarter of 2023 Segment Sales Industrial Phosphate Growing Segment EBITDA Industrial Phosphate Growing Potash Potash US$M Products Solutions Solutions US$M Products Solutions Solutions 3Q’22 $170 $537 $239 $127 3Q’22 $437 $854 $766 $629 Quantity ($38) $54 $7 $52 Price
Slide 25: Segment results analysis – first nine months of 2023
Segment results analysis First nine months of 2023 Segment Sales Industrial Phosphate Growing Segment EBITDA Industrial Phosphate Growing Potash Potash US$M Products Solutions Solutions US$M Products Solutions Solutions YTD’22 $579 $1,603 $801 $392 YTD’22 $1,417 $2,600 $2,479 $1,895 Quantity ($222)
Slide 26: Reconciliation tables – third quarter 2023
Reconciliation tables Calculation of adjustments for third quarter of 2023 Adjusted EBITDA Adjusted NI and diluted EPS 3Q’23 3Q’22 3Q’21 3Q’23 3Q’22 3Q’21 US$M US$M, ex. per share Net income $142 $635 $242 Net income, attributable $137 $633 $225 (1) Financing expenses, net $42 $24 $34 Adjustments -
Slide 27: Reconciliation tables – first nine months of 2023
Reconciliation tables Calculation of adjustments for first nine months of 2023 Adjusted EBITDA Adjusted NI and diluted EPS YTD’23 YTD’22 YTD’21 YTD’23 YTD’22 YTD’21 US$M US$M, ex. per share Net income $603 $1,877 $534 Net income, attributable $580 $1,828 $500 (1) Financing expenses, net $135 $72 $84
Slide 28: Guidance and non-GAAP financial measures
Guidance and non-GAAP financial measures Guidance: The company only provides guidance on a non-GAAP basis. The company does not provide a reconciliation of forward-looking adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting and quantifying certain amou