Icl Group Ltd. · TASE:ICL
Icl — Israel Chemicals — Q2 2015 Earnings Presentation
19 slides from Icl's earnings presentation, Aug 12, 2015
Slide 1: Q2 2015 Results
Mr. Stefan Borgas | President & CEO August 12 , 2015 Q2 2015 Results
Slide 2: Important Legal Notes
Important Legal Notes The information delivered or to be delivered to you does not constitute an offer or a recommendation to do any transaction in Israel Chemicals Ltd . (ICL) securities . Certain statements in this presentation and other oral and written statements made by ICL from time to time,
Slide 3: Highlights & Financial Results
Highlights & Financial Results $ millions Q 2 15 Q 2 14 % change Q 1 15 % change Revenues 1 , 196 1 , 535 ( 22.1 )% 1 , 403 ( 14.8 )% Operating income 107 78 37.2 % 315 ( 66.0 )% Adjusted operating income 251 243 3.3 % 275 ( 8.7 )% Net income 75 68 10.3 % 217 ( 65.4 )% Adjusted net income 177 214
Slide 4: Business Environment & Major Developments
Business Environment & Major Developments 4 ICL Fertilizers ▪ Quarterly results impacted by the strike but supported by continued improvement at Rotem and at ICL UK ▪ Increased potash production expected at ICL Dead Sea in 2 H 2015 ▪ New potash sales contracts in China ( 1.2 mt ) and India ( 835 kt)
Slide 5: Operational Efficiency Achievements in Israel
Operational Efficiency Achievements in Israel 5 Over 250 (over 10 %) employees have already left both sites Headcount Reduction Approx. 50 employees will leave the company by 2018 . ICL Dead Sea, ICL Neot Hovav ICL Neot Hovav Managerial Control & Efficiency Initiatives Flexible deployment of employe
Slide 6: Investment into Operational Excellence in Israel
Investment into Operational Excellence in Israel 6 S trike impact - 2015 NPV of economic benefit: at least $ 170 million Total economic impact ($M, NPV) ~(90) Total benefits ($M, NPV) ~260 Benefit from bromine and compound price increase – estimated annual contribution ($M/year) ~ 20 Higher than exp
Slide 7: JV in China – Strategic Progress of an Attractive Opportunity
JV in China – Strategic Progress of an Attractive Opportunity 7 Management team fully in place The R&D agreement was signed on June 2015: » 11 projects were jointly agreed in Food, Engineered Materials, Agro and process improvement. Additional projects by year - end The JV in Numbers $ 183 M in the
Slide 8: Opportunities in Potash, SOP and Polysulphate to Increase Production
Opportunities in Potash, SOP and Polysulphate TM to Increase Production 8 Potential gradual increase of production capability 5.3 5.1 7.8 0.13 1.0 0.5 10.0 % 7.5% 9.0 % 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2 4 6 8 10 2005A 2015E 2025E Million tonnes Potash Polysulphate SOP Potash market
Slide 9: Industrial Products’ Growth Projects - a Significant Contribution To Future Sales
9 Industrial Products’ Growth Projects - a Significant Contribution To Future Sales FURNITURE & TEXTILE TRANSPORTATION WATER TREATMENT CONSTRUCTION INTERMEDIATES FOR FOOD, PHARMA, AGRO OIL & GAS POWER PLANTS ELECTRONICS Growth Areas Next generation Polymeric and Reactive flame retardants Brominated
Slide 10: ICL Performance Products – Full Focus on Core Business
ICL Performance Products – Full Focus on Core Business 10 Leveraging our proprietary technology in the rapidly developing market space for creative food with unique ingredient systems Leveraging ICL’s natural resources and technology in a diverse portfolio of applications Food Specialties Advanced A
Slide 11: Financial Results
Financial Results Mr. Kobi Altman Executive VP & CFO
Slide 12: Q2 2015 Results
1 , 535 1 , 196 19 61 61 253 127 100 Q 2 2015 Results Q 2 2015 Sales Q 2 2015 Adjusted o perating income Numbers may not add up due to rounding $ millions Q 2 15 Q 2 14 % change Q 1 15 % change Revenues 1 , 196 1 , 535 ( 22.1 )% 1 , 403 ( 14.8 )% Operating income 107 78 37.2 % 315 ( 66.0 )% Adjus
Slide 13: Potash Bridge Analysis
Potash Bridge Analysis Sales ($M) Operating income ($M) Numbers may not add up due to rounding 445 238 18 179 22 24 131 139 104 11 8 2 18 11 6 38 93
Slide 14: Specialty and Phosphate Fertilizers
Specialty and Phosphate Fertilizers Sales ($M) Operating income ($M) Numbers may not add up due to rounding 404 430 4 65 43 21 30 51 41 9 12 4 9 4 10
Slide 15: Industrial Products
- 113 31 31 - 15 144 4 1 5 6 40 Industrial Products Sales ($M) Operating income ($M) Numbers may not add due to rounding 359 247 14 33 65
Slide 16: Performance Products
Performance Products Sales ($M) Operating income ($M) Numbers may not add due to rounding 409 364 108 100 48 5 50 40 38 52 10 32 21 9 4 14
Slide 17: Efficiency Initiatives Contribution – Segment Breakdown
Efficiency Initiatives Contribution – Segment Breakdown 17 USD millions/year 2016 efficiency gains run - rate of $ 350 M Segment run - rate contribution 2016E 2015E 2014A ICL PP ICL IP Phosphates and fertilizers Potash $ 240 million $ 120 million $ 350 million Procurement Energy Commercial excellenc
Slide 18: Operational Excellence Goals at Our Production Sites
Operational Excellence Goals at Our Production Sites 18 ICL UK ICL Industrial Products, ICL Performance Products ICL Dead Sea Potash Engineered Materials, Food Potash Polysulphate TM ▪ Additional production of 400 kt annually beyond the 3 years compensation for the strike losses ▪ Potash cost per to
Slide 19: Thank You
Thank You 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: Executive Vice President and Chief Fi