Icl Group Ltd. · TASE:ICL
Icl — Q1 2020 Earnings Presentation
30 slides from Icl's earnings presentation, May 12, 2020
Slide 1: Q1 2020 Results
Qi 2020 Re Raviv Zoller T President & CEO y May 12, 2020 tol Via
Slide 2: Disclaimer and Safe Harbor for Forward-Looking Statements
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 ICL Group Ltd. (“ICL Group”
Slide 3: Diversity of business softened impact of low commodity prices
Diversityofbusinesssoftenedimpact oflowcommodityprices Achieved operating incomeof$132million,EBITDA(1) of$250millionandoperating cashflowof$166million Record business and financial performance of Industrial Products Strong performance in phosphate specialties Limited impact from COVID-19 pandemic,
Slide 4: COVID-19 response and impact
• Safety of employees is top priority • Limited impact on operations; • Strong liquidity of over $1.1 all sites are operational billion in cash and available • Safety measures implemented in credit facilities all company sites • Experience acquired in China implemented in all sites globally • Very l
Slide 5: Q1 2020 sales bridge
Commodities 1,415 16 16 96 1,319 Q1 2019 sales Quantities Exchange rates Prices Q1 2020 sales $ millions Numbers may not add due to rounding and set offs 5
Slide 6: Adjusted EBITDA segment contribution
Adjusted EBITDA Segment Contribution 350 7 1 20 23 65 250 Q1 2019 adjusted Industrial IAS Phosphate All Potash Q1 2020 adjusted EBITDA Products Solutions other EBITDA $ millions Numbers may not add due to rounding and set offs Adjusted EBITDA is a non-GAAP financial measure. See appendix tothis pres
Slide 7: Industrial Products segment EBITDA
Achieved record quarterlyoperating income driven by strongsales in most products SEGMENT EBITDA (1) Higher sales of specialty minerals $ millions due to high demand for food and pharma applications Signed additional long-term contracts with Asiancustomers 113 10 3 3 3 120 Q1 2019 Quantities Prices E
Slide 8: Potash segment EBITDA
Facilities upgrade in Q4 2019 resulted in record first quarter potash production at the DeadSea Average realized price dropped $44 per tonne compared to Q1 2019 SEGMENT EBITDA(1) Polysulphate production of 177 thousand tonnes, an increase of 34% $ millions over Q12019 Potash production in Spain resu
Slide 9: Phosphate Solutions segment EBITDA
Continued focus on Phosphate Specialties growth partially compensated for a 30% declinein commodity phosphate prices SEGMENT EBITDA(1) Solid performance for YPH JV inChina despite impact of COVID-19 $ millions Strong demand for phosphate fertilizers reflected in highersales volumes Strong demand for
Slide 10: Innovative Ag Solutions segment EBITDA
Stable business and financial performance SEGMENT EBITDA (1) Decrease in sale of third-party products contributed to valueover $ millions volume strategy Continued sales growthin emergingmarkets Completed acquisition of US-based precision agriculture company, 18 4 1 2 19 Growers Holdings,Inc. Q1 201
Slide 11: Outlook
AllofICL’smanufacturingfacilitiesareupandrunning;ICLIberiaandICLUKexpectedramp-upto full production by the end ofQ2. ImpactofCOVID-19willmainlybereflectedinanear-termdeclineindemandforclearbrinefluids and some flameretardants Commoditypricesareexpectedtoremainlowinthenear-term.Potash prices areexpec
Slide 12: Kobi Altman, CFO
Kobi Altman CFO ANICL
Slide 13: Q1 2020 financial results summary
$ millions Q1 2020 Q1 2019 % change Q4 2019 % change Sales 1,319 1,415 (7%) 1,106 19% Operating income 132 227 (42%) 88 50% Adjusted EBITDA(1) 250 350 (29%) 201 24% Net income 60 139 (57%) 48 25% EPS (Presented in US $) 0.05 0.11 (55%) 0.04 25% Operating cash flow 166 173 (4%) 212 (22%) 1.Adjusted E
Slide 14: Fertilizer price trends
$US/tonne 450 400 350 300 GMOP CFR Brazil GTSP CFR Brazil 250 200 Source: CRU Fertilizer Historical Prices April 30 2020 14
Slide 15: Financial expenses
$ millions Q1 2020 Q1 2019 Liabilities(1) 2,684 2,820 Interest rate 4.0% 4.2% Interest expenses 26 30 Interest capitalization (5) (4) Interest expenses, net 21 26 Total hedging transactions, balance sheet revaluation & other 44 (7) Interest & exchange rate impact on long-term liabilities of (13) 16
Slide 16: Net debt/EBITDA ratio and loan maturities
Net Debt/EBITDAratio(1) 3.1 2.9 2.0 2.2 1.9 Dec2016 Dec2017 Dec2018 Dec2019 Mar2020 Total cash balance as of March 31, 2020amounts Loans maturities (3) to $524million Available creditfacilities as of March 31, 2020 amounts to $590million 74 312 121 122 504 59 19 68 600 2020 2021 2022 2023 2024 2025-
Slide 17: Diverse, resilient business and financial strength
DIVERSE, RESILIENT BUSINESS FINANCIAL STRENGTH Differentiated business model and growth Significant liquidity profile and no of specialty products provides a strong significant near-term principal repayments foundation ensures flexibility to manage and opportunistically grow the business POSITIVE LO
Slide 18: Thank you
Slide 19: Appendix
APPENDIX AICL
Slide 20: Q1 2020 sales
Qi 2020 sales 1,415 16 16 96 1,319 Q1 2019 Quantities Exchange rates Prices Q1 2020 1,415 14 1 6 35 70 ical) Q1 2019 Industrial Set-offs & Innovative Phosphate Potash Q1 2020 Products eliminations Ag Solutions Solutions Numbers may not add due to rounding and set offs. $ millions ANICL 20
Slide 21: Q1 2020 Operating Income
Q1 2020 Operating Income SE eee eae eee ge ee a ee eee ae oe Ee eee eC $ millions 227 14 31 5 3 12 40 96 132 Q1 2019 Adjustments Raw materials Quantities | Transportation Exchange rates Operating & Product Q1 2020 to operating other expenses Prices income (Q1 '19) ap Gp aap 227 ! 14 6 1 25 26 65 132
Slide 22: Q1 2020 Industrial Products
Q1 2020 Industrial Products Sales and Segment Profit Analysis $ millions SEGMENT SALES SEGMENT PROFIT —_—_— [cana <= Ss ee eee 350 14 3 3 364 10 3 3 2; 2 103 Qi 2019 Quantities Prices Exchange rates Q12020 Q12019 Quantities Prices Exchangerates _ Energy, Operating Qi 2020 transportation & other &raw
Slide 23: Q1 2020 Potash
Q1 2020 Potash Sales and Segment Profit Analysis $ millions SEGMENT SALES SEGMENT PROFIT == 384 2 17 51 314 4 2 4 2 Qi 2019 Exchange Quantities Prices Q12020 Q1 2019 Energy, Quantities Exchange Operating Prices Q1 2020 rates transportation rates &other expenses Numbers may not add due to rounding an
Slide 24: Q1 2020 Phosphate Solutions
Q1 2020 Phosphate Solutions Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT $ millions [ Q12019 Quantities Exchange Prices 2020 Q12019 Raw Quantities Energy Exchange —_ Operating Prices Q12020 rates materials rates & other expenses Numbers may not add due to rounding and set offs. AIC
Slide 25: Q1 2020 Innovative Ag Solutions
Q1 2020 Innovative Ag Solutions Sales and Segment Profit Analysis $ millions SEGMENT SALES SEGMENT PROFIT ba ________} — a === =D = tn 1 2 Q12019 ange Quantities @u.2020 Qu2019 Operating Prices Quantities 12020 ma ae ate Pec Numbers may not add due to rounding and set offs. AICL 25
Slide 26: Effective Tax Rate
Effective Tax Rate $ millions QI 2020 QI 2019 Adjusted income before tax(1) 81 206 Normalized tax rate 21% 21% Normalized tax expenses 17 44 Carryforward losses not recorded for tax purposes 2 1 Exchange rate impact and other items 1 9 Adjusted tax expenses 20 54 Adjusted Effective tax rate 25% 26%
Slide 27: Reconciliation Tables (1/2)
Reconciliation Tables (1/2) $ millions Calculation of adjusted income before tax QI 2020 QI 2019 Adjusted operating income(1) 132 241 Finance expenses (52) (35) Share in earnings (losses) of equity-accounted investees 1 - and adjustments to financial expenses Adjusted income before tax 81 206 | Numb
Slide 28: Reconciliation Tables (2/2)
Reconciliation Tables (2/2) __________________________________________________________________I $ millions Calculation of adjusted EBITDA QI 2020 Q4 2019 Q3 2019 Q2 2019 FY 2019 FY 2018 FY 2017 FY2016 Net income attributable to the 60 48 130 158 475 1,240 364 (122) shareholders of the Company Deprec
Slide 29: Non-GAAP Financial Measures
Non-GAAP 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, adjusted EPS and free cash flow. Our management uses such non-GAAP measures to facilitate o
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