Slide 1: Full Year and Fourth Quarter 2022 Financial Results
Full Year and Fourth Quarter 2022 Financial Results Raviv Zoller | President and CEO February 15, 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: Overview of record 2022
Overview of record 2022 Benefitted from focus on specialties solutions and significant commodity upside • Record annual sales of $10B+ and adjusted EBITDA of $4B+ • Record annual sales and EBITDA for all specialties businesses: Industrial Products, Phosphate Specialties and Growing Solutions • Recor
Slide 4: Key financial metrics
Key financial metrics Long-term transformation taking place Sales Specialties sales Adjusted diluted EPS(1) US$M US$M US$ 15% CAGR $10,015 16% CAGR $1.82 $6,955 $5,271 $5,976 $5,043 $4,629 $3,466 $3,423 $0.64 $0.37 $0.20 FY'19 FY'20 FY'21 FY'22 FY'19 FY'20 FY'21 FY'22 FY'19 FY'20 FY'21 FY'22 Adjuste
Slide 5: Non-financial metrics
Non-financial metrics Taking action and making progress Incident Rate GHG Emissions Index 18% reduction since 2018 1.57 2,940 0.92 2,649 0.77 2,507 2,538 0.62 2,407 FY'19 FY'20 FY'21 FY'22 FY'18 FY'19 FY'20 FY'21 FY'22 Base Notes: Incident rate – an indication of how many incidents have occurred and
Slide 6: Full year 2022 key highlights
Full year 2022 Key highlights Financial Performance FY’19 FY’20 FY’21 FY’22 YoY US$M ex. per share Sales $5,271 $5,043 $6,955 $10,015 44% Gross margin 34% 30% 38% 50% -- Adjusted net income, attributable(1) $479 $258 $824 $2,350 185% Adjusted diluted EPS(1) $0.37 $0.20 $0.64 $1.82 184% Adjusted EBIT
Slide 7: Fourth quarter 2022 key highlights
Fourth quarter 2022 Key highlights Financial Performance 4Q’19 4Q’20 4Q’21 4Q’22 YoY US$M ex. per share Sales $1,106 $1,317 $2,038 $2,091 3% Gross margin 30% 31% 42% 45% Adjusted net income, attributable(1) $48 $68 $339 $358 6% Adjusted diluted EPS(1) $0.04 $0.05 $0.26 $0.28 8% Adjusted EBITDA(1) $2
Slide 8: Industrial Products
Industrial Products Strong 2022 with record results Annual FY'20 FY'21 FY'22 Key 2022 highlights US$M $1,766 $1,617 $1,255 • Record annual sales and EBITDA Sales EBITDA $689 • Higher prices throughout 2022 more than offset raw material $500 $380 increases 30% 31% 39% • 4Q results down YoY, as 2021 d
Slide 9: Phosphate Solutions
Phosphate Solutions Stellar 2022 due to strong demand and higher prices Key 2022 highlights Annual FY'20 FY'21 FY'22 US$M • Record 2022 specialties sales and EBITDA, $3,106 for both food and industrial solutions Sales $2,254 $1,816 EBITDA • Record annual sales and EBITDA for commodities $966 $292 $5
Slide 10: Potash
Potash Operational excellence combined with higher prices for record year Key 2022 highlights Annual FY'20 FY'21 FY'22 US$M $3,313 • Annual Dead Sea production record of 4M+ tons Sales $1,988 • Annual average realized potash price per ton increased $1,776 EBITDA $1,268 to $643, up 91% vs. $337 in 20
Slide 11: Growing Solutions
Growing Solutions Record breaking year with continued geographic diversity Key 2022 highlights Annual FY'20 FY'21 FY'22 US$M $2,422 • Record annual sales and EBITDA $1,670 • Record sales and profit for Brazilian business, Sales EBITDA $1,033 with successful integration $448 $62 $197 • Delivered reco
Slide 12: Making an impact in 2022
Making an impact in 2022 A few things that make us proud First to launch biodegradable coating solution Accelerating growth of specialties businesses Global leader in CRF technology Announced new five-year targets Awarded DOE grant for LFP in U.S. Early adopter of UN Global Compact Unique circular e
Slide 13: Outlook for 2023
Outlook for 2023 Industrial Products… Phosphate Solutions… Potash… Growing Solutions… expecting stronger 2H building partnerships improving affordability expanding market share 13
Slide 14: Full Year and Fourth Quarter 2022 Financial Results
Full Year and Fourth Quarter 2022 Financial Results Aviram Lahav CFO
Slide 15: Macro overview
Macro overview • Inflation moderated, but remains high • Regions and end-markets continued to diverge • Global growth stalled, with slow-down forecasted • Commodity prices moderating, following peaks in 1H’22 • Fertilizer prices remain elevated vs. recent history • Farmer affordability and sentiment
Slide 16: Pricing across mineral value chain
$300 $600 $900 $0 $20,000 $0 $40,000 1Q'17 US$/ton US$/day 1Q'17 2Q'17 2Q'17 3Q'17 3Q'17 4Q'17 4Q'17 1Q'18 1Q'18 GMOP FOB NOLA 2Q'18 2Q'18 3Q'18 3Q'18 4Q'18 4Q'18 1Q'19 1Q'19 2Q'19 2Q'19 3Q'19 3Q'19 Supramax Timecharter Average 4Q'19 4Q'19 1Q'20 1Q'20 2Q'20 2Q'20 3Q'20 Commodity price progression 3Q
Slide 17: Crop economics
Crop economics Prices and affordability remain high, but uncertainty remains Commodity crop prices Grain price trends US$/ton US$ $400 $400 Corn Rice Wheat Soybean Fertilizer price index Grain price index $300 $300 $200 $200 $100 $100 $0 $0 Jan-18 Jan-17 Jan-19 Jan-17 Jan-18 Jan-19 Jul-17 Jan-20 Jan
Slide 18: Full year 2022 sales bridges
Full year 2022 Sales bridges Sales by segment Sales US$M US$M $752 $3,541 $1,537 $852 ($230) $10,015 $2,422 ($353) $10,015 GS $149 $6,955 $3,106 PS Specialty 58% $6,955 ($128) Commodity 42% Potash $3,313 $1,766 IP Potash FY'21 Solutions FY'22 Solutions Other Products Indutrial Phosphate Growing Othe
Slide 19: Full year 2022 profit bridges
Full year 2022 Profit bridges Adjusted EBITDA(1) by segment Adjusted EBITDA(1) US$M US$M $3,541 $251 ($641) ($95) $465 ($89) ($179) $1,441 ($26) $448 GS ($93) $4,007 $4,007 $966 PS $189 Specialty 45% Commodity 55% $1,988 Potash $1,687 $1,687 ($124) IP $689 Other ($84) FY'22 Potash FY'21 Solutions So
Slide 20: Fourth quarter 2022 sales bridges
Fourth quarter 2022 Sales bridges Sales by segment Sales US$M US$M $56 $35 $393 $66 ($31) $2,091 ($79) $2,091 $2,038 ($73) $527 GS $2,038 ($261) $627 PS Specialty 64% Commodity 36% Potash $713 IP $349 4Q'21 Potash Solutions 4Q'22 Solutions Other Products Indutrial Phosphate Growing Other ($125) Quan
Slide 21: Fourth quarter 2022 profit bridges
Fourth quarter 2022 Profit bridges Adjusted EBITDA(1) by segment Adjusted EBITDA(1) US$M US$M $393 $101 $32 $4 $56 GS ($5) ($21) ($7) $698 $165 ($106) ($15) ($6) $698 $587 PS Specialty 48% $587 ($19) Commodity 52% ($129) $385 Potash IP $110 4Q'22 4Q'21 Potash Solutions Solutions Other Indutrial Grow
Slide 22: Financial overview
Financial overview Continued attention to delivering shareholder returns Highlights • Net debt to adjusted EBITDA(1) remained at 0.5 • Operating cash flow of $2.0B vs. $1.1B in 2021 • 4Q up 36% YoY to $467M • Annual free cash flow(1) of $1.3B vs. $465M in 2021 • 4Q up 55% to $258M • Declared dividen
Slide 23: Guidance
Guidance Full year 2023 • Expect annual adjusted EBITDA range of $2.2 billion to $2.4 billion (1) • EBITDA of specialties businesses to represent approximately $1.1 billion of total adjusted EBITDA Adjusted EBITDA(1) Specialties EBITDA(1) US$B US$B $4.0 $2.2 to $2.4 ~15% CAGR $1.2 $1.7 ~$1.1 $1.0 $0
Slide 24: Thank you
Thank you Co n ta c t Pe g g y. Re i l l y T h a r p @ i c l - g r o u p . co m f o r m o r e i n f o r m a t i o n o n I C L View our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 25: Appendix
Appendix Full Year and Fourth Quarter 2022 Financial Results
Slide 26: Industrial Products
Industrial Products Fourth quarter and full year 2022 Industrial Products US$M 4Q’22 4Q’21 FY’22 FY’21 US$M 4Q Sales FY Sales Segment sales $349 $422 $1,766 $1,617 2021 $422 $1,617 Sales to external customers $343 $418 $1,737 $1,601 Quantity ($128) ($274) Sales to internal customers $6 $4 $29 $16 Pr
Slide 27: Potash
Potash Fourth quarter and full year 2022 Potash US$M 4Q’22 4Q’21 FY’22 FY’21 US$M 4Q Sales FY Sales Segment sales $713 $647 $3,313 $1,776 2021 $647 $1,776 Sales to external customers $568 $541 $2,710 $1,401 Quantity ($72) ($50) Sales to internal customers $36 $18 $184 $94 Other and eliminations (1)
Slide 28: Phosphate Solutions
Phosphate Solutions Fourth quarter and full year 2022 Phosphate Solutions US$M 4Q’22 4Q’21 FY’22 FY’21 US$M 4Q Sales FY Sales Segment sales $627 $571 $3,106 $2,254 2021 $571 $2,254 Sales to external customers $574 $527 $2,851 $2,087 Sales to internal customers $53 $44 $255 $167 Quantity ($20) $76 Se
Slide 29: Growing Solutions
Growing Solutions Fourth quarter and full year 2022 Growing Solutions US$M 4Q’22 4Q’21 FY’22 FY’21 US$M 4Q Sales FY Sales Segment sales $527 $492 $2,422 $1,670 2021 $492 $1,670 Sales to external customers $513 $481 $2,376 $1,644 New Brazilian businesses’ contribution - $302 Sales to internal custome
Slide 30: Consolidated results analysis
Consolidated results analysis Fourth quarter 2022 Operating US$M Sales Expenses EBITDA Income 4Q’21 $2,038 ($1,577) $461 Total adjustments 4Q’21(1) - ($3) ($3) Adjusted 4Q’21 figures $2,038 ($1,580) $458 $587 Notes: Negative – Primarily due to lower sales volumes of potash, bromine and phosphorus-ba
Slide 31: Reconciliation tables
Reconciliation tables Calculation of adjusted EBITDA and free cash flow Calculation of adjusted EBITDA US$M 4Q’22 4Q’21 4Q’20 4Q’19 FY’22 FY’21 FY’20 FY’19 Net income $342 $298 $70 $48 $2,219 $832 $24 $481 Financing expenses, net $41 $38 $46 $25 $113 $122 $158 $129 Taxes on income $158 $128 $24 $15
Slide 32: Reconciliation tables
Reconciliation tables Calculation of adj. net income, attributable, adj. diluted EPS and net debt to adj. EBITDA Calculation of adjusted net 4Q’22 4Q’21 4Q’20 4Q’19 FY’22 FY’21 FY’20 FY’19 income, attributable US$M Net income, attributable $331 $283 $65 $48 $2,159 $783 $11 $475 Adjustments(1) $22 ($
Slide 33: Reconciliation tables
Reconciliation tables Calculation of segment EBITDA Industrial Phosphate Growing Calculation of segment Potash Products Solutions(1) Solutions EBITDA and margin US$M 4Q’22 4Q’21 4Q’20 4Q’22 4Q’21 4Q’20 4Q’22 4Q’21 4Q’20 4Q’22 4Q’21 4Q’20 Segment sales $349 $422 $336 $713 $647 $357 $627 $571 $473 $52
Slide 34: Segment changes
Segment changes Consolidated specialty agriculture businesses under Growing Solutions (GS) Potash Phosphate Solutions Growing Solutions US$M US$M US$M 2020 2021 2020 2021 2020 2021 FY 1Q 2Q 3Q 4Q FY FY 1Q 2Q 3Q 4Q FY FY 1Q 2Q 3Q 4Q FY Segment sales 1,268 349 380 400 647 1,776 Segment sales 1,816 502
Slide 35: 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