Icl Group Ltd. · TASE:ICL
Icl — Israel Chemicals — Q3 2017 Earnings Presentation
33 slides from Icl's earnings presentation, Nov 8, 2017
Slide 1: Q3 2017 Results
Asher Grinbaum | Acting CEO November 8 th , 2017 Q 3 2017 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: Q3 2017 Results Summary
$ millions Q 3 17 Q 3 16 % change Q 2 17 % change Sales 1 , 440 1 , 383 4.1 % 1 , 322 8.9 % Operating income (loss) 180 ( 331 ) NA 144 25.0 % Adjusted operating income 215 164 31.1 % 153 40.5 % Adjusted EBITDA 314 286 9.8 % 251 25.1 % Net income (loss) 84 ( 340 ) NA 57 47.4 % Free Cash flow** 78 96
Slide 4: Business Performance & Major Developments
Business Performance & Major Developments Essential Minerals Specialty Solutions ϰ * Including inter - business lines’ sales ** Excluding G&A, unallocated expenses and eliminations $ million Q3 2017 Q3 2016 % change Sales* 758 748 1.3% Segment O/I** 88 89 (1.1)% $ million Q3 2017 Q3 2016 % change Sa
Slide 5: Adding Value throughout Our Backward Integrated Production Chain
Adding Value throughout Our Backward Integrated Production Chain Potash & Polysulphate TM Phosphates Bromine Potash fertilizers Polysulphate TM Specialty fertilizers Compound NPKs Green Phosphoric Acid SSP, TSP, DAP, MAP Pure Phosphoric Acid Food additives Controlled & slow release fertilizers Cle
Slide 6: Financial Results
Financial Results Kobi Altman CFO
Slide 7: Main Financial Figures and Analysis Q3 2017
1 , 383 1 , 440 21 21 15 164 215 33 15 15 1 2 11 Main Financial Figures and Analysis Q 3 2017 Sales ($M) Q 3 2017 Adjusted operating income ($M) See Q 2 2017 financial reports for a reconciliation of Adjusted operating income to operating income * See appendix for reconciliation of free cash flow
Slide 8: Q3 Sales and Operating Income Breakdown
149 345 204 288 286 157 Specialty Fertilizers Potash & Mg. Phosphates Advanced Additives Industrial Products Food Specialties 88 32 % 190 68 % Q 3 Sales and Operating Income Breakdown Q 3 2017 SALES BY BUSINESS LINE* (US$ M) Q 3 2017 OPERATING INCOME BY SEGMENT (US$ M) Specialty Solutions (Industr
Slide 9: Effective Tax Rate Impacted by Exceptional Items
Effective Tax Rate Impacted by Exceptional Items $ million Q3 2017 Q3 2016 FY2016 Profit before tax 182 152 506 Income and Natural resources tax 63 39 121 Normalized effective tax rate % 35 % 26 % 24 Special items 3 --- 26 Post special items 66 39 147 Post special items Tax rate % 36 % 26 % 29 NIS
Slide 10: Specialty Solutions Bridge Analysis
Specialty Solutions Bridge Analysis Sales ($M) Segment operating income ($M) Numbers may not add due to rounding and set offs Excluding G&A and unallocated expenses 701 746 32 9 4 171 190 14 5 4 1 1 2
Slide 11: Essential Minerals Bridge Analysis
Essential Minerals Bridge Analysis Sales ($M) Segment operating income ($M) Numbers may not add due to rounding and set offs Excluding G&A and unallocated expenses 748 758 13 9 12 89 88 9 6 3 4 6 9
Slide 12: Improving Cash Flow Generation
78 86 104 127 96 85 38 - 89 - 36 170 - 72 133 90 - 86 - 63 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Improving Cash Flow Generation $ Million * See appendix for reconciliation of free cash flow Free Cash Flow* FY 2014 :
Slide 13: Thank You
Thank You
Slide 14: Introduction to ICL Advanced Additives & Food Specialties
Introduction to ICL Advanced Additives & Food Specialties November 8 , 2017
Slide 15: ICL Business Structure
ICL Business Structure ICL Essential Minerals Division Specialty Solutions Division Specialty Fertilizers Phosphate Potash & Magnesium Food Specialties Advanced Additives Industrial Products 15 Advanced Additives Food Specialties
Slide 16: Advanced Additives & Food Specialties Profile
Advanced Additives & Food Specialties Profile 2016 16 16 73 % 27 % ~ 2 , 000 % Sales by business line 45 % $ 1.46 B REVENUE* $ 239 M OPERATING INCOME** Food Specialties 55 % Advanced Additives EMPLOYEES WORLDWIDE Advanced Additives Food Specialties NA 50 % Asia/Pacific 3 % EMEA 37 % SA 10 % Adv Add
Slide 17: Advanced Additives & Food Specialties: Global Leadership Position
Advanced Additives & Food Specialties: Global Leadership Position 17 ▪ Backward integrated to phosphate rock: full phosphate chain producer from rock to sophisticated blended products. ▪ Only global manufacturer of high quality phosphoric acids and downstream phosphates: US, Mexico, Germany, Israel,
Slide 18: Advanced Additives Profile
39 % 25 % 19 % 12 % 5 % Acid Ind. Specialities Fire Safety P2S5 P4 BUSINESS LINES SALES DISTRIBUTIONS 2016 Advanced Additives Profile 18 18 $ 800 M ANNUAL SALES 2016 * $ 155 M OPERATING INCOME 2016 * ~ 1 , 100 EMPLOYEES WORLDWIDE Fire Safety P - Salts, Acids P 2 S 5 P&C NA 50 % Asia/Pacific 9 % EMEA
Slide 19: Advanced Additives – A Stable Portfolio With Broad Applications
Advanced Additives – A Stable Portfolio With Broad Applications 19
Slide 20: Advanced Additives Strategy: Leverage on Market Trends
Advanced Additives Strategy: Leverage on Market Trends ϮϬ Market Trends ▪ Increasing infrastructure investments ▪ Less potable Water ▪ Global weather patterns ▪ Increased Vehicle demand. ▪ Long - term growth in Asia & South America
Slide 21: Food Specialties Profile
32 % 24 % 11 % 29 % 4 % Single Phosphates Phosphate Blends Multiblends Food Specialties Profile 21 21 2016 ANNUAL SALES BREAKDOWN $ 660 M ANNUAL SALES 2016 * $ 84 M OPERATING INCOME 2016 * NA 28 % Asia/Pacific 32 % EMEA 30 % SA 10 % FOOD GLOBAL PRESENCE ~ 900 EMPLOYEES WORLDWIDE * Before setoffs and
Slide 22: Food Specialties – A Stable Portfolio With Broad Applications
Food Specialties – A Stable Portfolio With Broad Applications 22
Slide 23: Food Specialties Market Trends and Growth Opportunities
Market Trends Growth Opportunities Follow key industry trends Food Specialties Accelerated Growth Engines Ϯϯ ▪ High - growth new applications in Meat, Dairy, Infant Milk Nutrition ▪ Expand portfolio through tailored solutions ▪ Local presence in growing emerging markets ▪ Growing middle class in eme
Slide 24: Key Points: Advanced Additives & Food Specialties
Key Points: Advanced Additives & Food Specialties Ϯϰ Only Global player and backward integrated; expanded footprint in Asia & South America Demonstrated ability for Selling Solutions Diverse and blue - chip customer base Growing sales and margins in the face of competitive market environment
Slide 25: Thank You
Thank You
Slide 26: Appendix
Appendix
Slide 27: Specialty Solutions Division
Specialty Solutions Division Ϯϳ
Slide 28: Specialty Solutions’ Business Line Sales Q3 2017
Q3 2016 Exchange rates Prices Quantities Q3 2017 172 160 4 1 15 Q3 2016 Quantity Exchange Rates Prices Q3 2017 256 301 43 3 1 Specialty Solutions’ Business Line Sales Q 3 2017 Numbers may not add due to rounding and set offs Industrial Products Advanced Additives Food Specialties Q3 2016 Quantity
Slide 29: ICL Essential Minerals Division
ICL Essential Minerals Division Ϯϵ
Slide 30: Essential Minerals’ Business Line Sales
Essential Minerals’ Business Line Sales Q 3 2017 Numbers may not add due to rounding and set offs Specialty Fertilizers Potash & Magnesium Phosphates 282 254 5 1 32 351 372 18 5 2 147 154 7 3 3
Slide 31: Potash Business Stand-Alone Bridge Analysis
Potash Business Stand - Alone Bridge Analysis Q 3 2017 Sales ($M) Business unit operating income ($M) See Q 3 2017 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income . Numbers may not add due to rounding and set offs Exclu
Slide 32: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Q 1 2014 Q 2 2014 Q 3 2014 Q 4 2014 Q 1 2015 Q 2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Cash flow from operations 167 120 295 310 66 325 124 58 222 238 249 257 195 199 176 Purchase of property, plant and equipment and intangible
Slide 33: Non-IFRS financial measures
We disclose in this Quarterly Report non - IFRS financial measures titled adjusted operating income, adjusted net income attributable to the Company’s shareholders , adjusted EBITDA and free cash flow . Our management uses adjusted operating income, adjusted net income attributable to the Company’s