Icl Group Ltd. · TASE:ICL
Icl — Israel Chemicals — Q1 2015 Earnings Presentation
19 slides from Icl's earnings presentation, May 13, 2015
Slide 1: Q1 2015 Results
Q1 2015 Results Mr. Stefan Borgas | President & CEO May 13, 2015
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, are
Slide 3: Highlights & Financial Results
Highlights & Financial Results * Gains from divestitures over compensated the impact of the strike * Operational Excellence activity around the world continued to progress at or above target * Most of our growth initiatives progress ahead of schedule $ millions Q1 15 Q1 14 % change Q4 14 % change Re
Slide 4: Highly Profitable Investment into Operational Excellence in Israel
Highly Profitable Investment into Operational Excellence in Israel Strike impact on net income Benefits -- continuous operational improvements Period Total ICL Total economic impact ($M, NPV) ~(130) ($M) Total benefits ($M, NPV) ~300 Q1 2015 (accounting) (76) Benefit from bromine price increase -- ~
Slide 5: Business Environment & Major Developments
Business Environment & Major Developments ICL Fertilizers * Potash supply contracts with Chinese customers at last year's quantities with higher price * Record sales of phosphate rock, elevated phosphoric acid production and lower costs, offset higher sulfur costs -- due to results of Operational Ex
Slide 6: Significant Cash Flow Contribution from Divestitures
Significant Cash Flow Contribution from Divestitures [] Divestitures net proceeds recognized in Q1 2015 cash flow - $345 million [] Capital gain from divestitures - $209 million. Net of taxes - $156 million [] Additional potential divestitures in process:
Slide 7: ICL Efficiency and Excellence Initiatives Contribution - Q1 2015
ICL Efficiency and Excellence Initiatives Contribution -- Q1 2015 Contribution by segment Contribution by project [] Efficiency and excellence initiatives contributed ~$30M in Q1 2015 vs. Q1 2014 [] Total run-rate estimated for Year End 2015*- $240M * Compared to 2013
Slide 8: Operational Excellence at ROTEM and ICL UK
Operational Excellence at ROTEM and ICL UK ICL Rotem performance Green Phosphoric Acid production '000t Operating income % Sulphur price trend line* Improving operations at ICL UK [] Potash production has increased by over 40% vs Q1 14 [] Polysulphate production increased by 150% [] Cost /tonne over
Slide 9: Continued Deliverance on Our Growth Strategy
Continued Deliverance on Our Growth Strategy Growth initiatives progress -- Q1 2015 Organic Growth Phosphates Higher volumes in all product categories due to operational improvements Potash Increased production and sales from ICL UK Polysulphate On track to sell above 150K tonnes in 2015 vs. ~50K to
Slide 10: ICL Rotem Awarded 2nd Place in IFA's Green Leaf Award
ICL Rotem Awarded 2(nd) Place in IFA's Green Leaf Award * The Green Leaf Award is a biennial contest for excellence in safety, health and environment, held by the International Fertilizer Association (IFA) * ICL Rotem was rewarded the outstanding 2nd place in recognition of its comprehensive and inn
Slide 11: Financial Results (Mr. Kobi Altman) Executive VP & CFO
Financial Results (Mr. Kobi Altman)Executive VP & CFO
Slide 12: Q1 2015 Results
Q1 2015 Results $ millions Q1 15 Q1 14 % change Q4 14 % change Revenues 1,403 1,613 (13.0)% 1,403 0.0% Operating Income 315 243 29.6% 174 81.0% Adjusted operating income 275 251 9.6% 200 37.5% Operating margin 19.6% 15.6% 14.3% Net income 217 131 65.6% 85 155.3% Adjusted net income 193 189 2.1% 108
Slide 13: Segment Results
Segment Results Potash Phosphates and Industrial Performance Fertilizers Products Products US$ millions Q1/ Q1/ Q1/ Q1/ Q1/ Q1/ Q1/ Q1/ 2015 2014 2015 2014 2015 2014 2015 2014 Sales 377 491 452 465 283 377 364 391 Operating income 92 146 43 30 -16 34 205 40 Adjusted 177 146 43 37 32 34 30 40 operati
Slide 14: Potash Bridge Analysis
Potash Bridge Analysis Sales ($M) Operating income ($M)
Slide 15: Phosphates and Fertilizers
Phosphates and Fertilizers Sales ($M) Operating income ($M) Numbers may not add up due to rounding
Slide 16: Industrial Products
Industrial Products Sales ($M) Operating income ($M) Numbers may not add due to rounding
Slide 17: Performance Products
Performance Products Sales ($M) Operating income ($M) Numbers may not add due to rounding
Slide 18: Improved Financial Position
Improved Financial Position [] Reduction of net debt by $190M to less than $2.5B [] Maturities postponed as a result of the latest club deal ICL maturities March 31, 2015* ($M) * Total debt: $2.7Bn. Avg. Interest 3% * Long-term credit facilities: $1.7B & []127M. Unutilized: $1.2B. * Exclude securiti
Slide 19: 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: Executive Vice President an