Icl Group Ltd. · TASE:ICL
Icl — Israel Chemicals — Q1 2016 Earnings Presentation
20 slides from Icl's earnings presentation, May 18, 2016
Slide 1: Q1 2016 Results
Stefan Borgas | President & CEO May 18 , 2016 Q 1 2016 Results
Slide 2: Important Legal Notes: Disclaimer and Safe Harbor
Important Legal Notes Disclaimer and Safe Harbor for Forward - Looking Statements The information contained herein in this presentation or delivered or to be delivered to you during our presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Is
Slide 3: ICL's Adapted Organization Structure: Enabling Strategic Growth
CEO Stefan Borgas Essential Minerals Division Nissim Adar Specialty Solutions Division Mark Volmer ICL’s Adapted Organization Structure: Enabling Strategic Growth Potash & Magnesium BU Advanced Additives BU Phosphates BU Industrial Products BU Food Specialties BU Specialty Fertilizers BU ~ 1 , 500
Slide 4: Aligning Organization Structure With Strategy
Aligning Organization Structure With Strategy □ Focus capabilities based on business needs: operational efficiencies for Essential Minerals and commercial excellence for Industrial Solutions □ Improved execution capabilities □ Improved market orientation □ Facilitate enhanced efficiency delivery a
Slide 5: Results Summary
Q 1 2016 Results Summary $ millions Q 1 16 Q 1 15 % change Q 4 15 % change Sales 1 , 265 1 , 403 ( 9.8 )% 1 , 427 ( 11.4 )% Adjusted operating income 115 275 ( 58.2 )% 233 ( 50.6 )% Adjusted net income 85 193 ( 56.0 )% 180 ( 52.8 )% Adjusted EPS 0.07 0.15 ( 53.3 )% 0.14 ( 50.0 )% Operating cash fl
Slide 6: Business Environment & Major Developments
Business Environment & Major Developments ▪ Weak sales to China and India negatively affected potash profits ▪ ICL will benefit from its stockpiling ability at the Dead Sea when business resumes ▪ Phosphate prices under pressure due to competitive dynamics between Chinese and Moroccan producers ▪ We
Slide 7: Industrial Products: Successful Strategy Implementation
Q1 2015 Q1 2016 7 Industrial Products: Successful Strategy Implementation Chinese bromine prices continue their upward trend 2000 2400 2800 3200 3600 New products sales drive sharp increase in operating income US$ Budget Q1 2016 HR Procurement Production Efficiency improvements surpasses expectation
Slide 8: ICL Food Specialties: New Blended Solutions Driving Growth
8 ICL Food Specialties: New Blended Solutions Driving Growth Increased demand for blended solutions and dairy protein products from existing and new customers ROVITARIS ™ protein system providing an appetizing, healthy meat - free option BEKAPLUS® BP 900 for clear protein solution x New product tech
Slide 9: Financial Results
Financial Results Kobi Altman CFO
Slide 10: Challenging Business Environment Negatively Impacted Results
176 115 99 * 28 11 4 81 114 1 , 403 1 , 265 164 70 19 49 77 227 Challenging Business Environment Negatively Impacted Results Q 1 2016 Sales Q 1 2016 Adjusted o perating income Numbers may not add up due to rounding $ millions Q 1 16 Q 1 15 % change Q 4 15 % change Sales 1 , 265 1 , 403 ( 9.8 )% 1
Slide 11: Sales by Business Unit
Sales by Business Unit Numbers may not add due to rounding 1 , 403 1 , 265 33 16 9 8 5 25 57 117
Slide 12: Specialty Solutions Take Front Row Amid Weakness in Commodity
Specialty Solutions Take Front Row Amid Weakness in Commodity 28 % 72 % 1 Q 2016 71 % 29 % 1 Q 2015 42 % 58 % 1 Q 2016 46 % 54 % 1 Q 2015 Operating Income Sales Essential Minerals Specialty Solutions
Slide 13: Potash Bridge Analysis
Potash Bridge Analysis Sales ($M) Adjusted Operating income* ($M) See Q 1 2016 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. 377 260 136 8 62 183 Numbers may not add due to rounding 92 27 85 6 2 11 62 81 * Strike imp
Slide 14: Phosphate and Specialty Fertilizers
Phosphate and Specialty Fertilizers Sales ($M) Adjusted Operating income* ($M) See Q 1 2016 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. 452 474 63 4 13 24 Numbers may not add due to rounding 43 14 17 2 3 3 14 24
Slide 15: Industrial Products
Industrial Products Sales ($M) Adjusted Operating income* ($M) Numbers may not add due to rounding See Q 1 2016 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. 283 286 28 3 2 26 * Strike impact Q 1 2015 20 47 12 * 12 6
Slide 16: Performance Products
Performance Products Sales ($M) Adjusted Operating income* ($M) See Q 4 2015 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. 364 321 7 3 1 5 49 30 25 9 1 4 11 Numbers may not add due to rounding
Slide 17: Efficiency Initiatives and Cash Flow Optimization
2014A 2015A 2016E 2018E Efficiency Initiatives and Cash Flow Optimization 17 USD millions 2016 E efficiency gains contribution breakdown* Efficiency gains contribution* 275 100 ~ 400 ▪ Improving working capital to generate additional $ 50 M in cash flow. ▪ CapEx not to exceed $ 650 M in 2016 - 2017
Slide 18: Refinancing Short-term Credit Lines Through A Successful Bond Issuance
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 498 14 14 238 25 1 , 145 18 19 1 , 010 0 46 103 103 103 103 Loans New Debentures Refinancing Short - term Credit Lines Through A Successful Bond Issuance □ Successful placement of debentures of NIS ~ 1.57 billion (~$ 413 million), 2.45 % inte
Slide 19: Capital Allocation Approach
ϭϵ Capital Allocation Approach Long - term value creation Manage debt level Shareholder’s return FINANCIAL STABILITY ▪ Dividend policy adapted to current market environment: payout ratio up to 50 % of annual adjusted net income ▪ New dividend policy to provide certainty to shareholders while keeping
Slide 20: Thank You
Thank You SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Israel Chemicals Ltd. By: /s/ Kobi Altman Name: Kobi Altman Title: Chief Financial Officer Isr