Icl Group Ltd. · TASE:ICL
Icl — Israel Chemicals — Investor Day (March 2018)
57 slides from Icl's investor day presentation, Mar 8, 2018
Slide 1: ICL Strategy
Hezi Israel, EVP BD & Strategy ICL Strategy 1 ʤʥʥʤʤʺʠʭʩʧʴʨʮ ʣʩʺʲʤʺʠʭʩʧʺʴʮ CULTIVATING THE PRESENT. DEVELOPING THE FUTURE.
Slide 2: Safe Harbor
Safe Harbor This Presentation (references to which and to any information contained herein shall be deemed to include information which h as been or may be supplied in writing or orally in connection herewith or in connection with any further enquiries) is provided for the sole purpose of providin
Slide 3: Where needs take us: ICL Today
‘Where needs take us ICL TODAY
Slide 4: ICL Today
AICL | ICL Today Bromine Br
Slide 5: ICL Today
ICL Today Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty Fertilizers AGRICULTURE INDUSTRIAL
Slide 6: Creating Value Along the Chain
Creating Value Along the Chain AGRICULTURE INDUSTRIAL Essential Minerals Specialty Solutions RESOURCES MINERAL ASSETS EXPERTISE SEGMENTS MARKETS
Slide 7: Where do we want to go?
, ~ ~ ~~ Where:do we --want to go? de
Slide 8: Our Strategic Guiding Principles
Our Strategic Guiding Principles GROWTH OPPORTUNITIES 2. FOCUSED PORTFOLIO & SYNERGIES 1. FINANCIAL STRENGTH 3. $
Slide 9: Upstream Vs. Downstream
Upstream Vs. Downstream UPSTREAM DOWNSTREAM OPTIMIZATION ▪ Successful track records in Phosphate & Bromine ▪ Show greater cycle resilience ▪ Higher ROI IDENTIFY GROWTH OPPORTUNITIES ▪ Highly Capital Intensive ▪ Volatile Market
Slide 10: Growth Alternatives
Growth Alternatives Specialty Fertilizers Phosphates Potash & Magnesium Essential Minerals Food Specialties Advanced Additives Industrial Products Specialty Solutions AGRICULTURE INDUSTRIAL Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash & Magnesium
Slide 11: Where to Focus Our Downstream Growth?
Where to Focus Our Downstream Growth? Israel Agro - Tech Environmental Awareness Healthy Nutrition Effective Agriculture ADVANCED CROP NUTRITION NPK Polysulphate CRF Water Soluble Liquid fertilizers PK+ Potash Phosphate Potash+
Slide 12: Our Strategic Focus
Our Strategic Focus Core Minerals Advanced Crop Nutrition
Slide 13: Our Strategic Focus
Our Strategic Focus Core Minerals Advanced Crop Nutrition
Slide 14: Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty
Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty Fertilizers
Slide 15: Optimization of our Mineral Assets
Optimization of our Mineral Assets Operational Excellence In the Dead Sea and Rotem ▪ Production process improvement ▪ Early retirement plan ▪ Rock production optimization ▪ Energy efficiency ▪ Maintenance optimization ICL UK – full shift to Polysulphate in progress ▪ ~ 50 % reduction in workforc
Slide 16: YPH: Hub for Our Specialty Businesses in China
YPH: Hub for Our Specialty Businesses in China ▪ Significant reduction in operating loss in 2017 ▪ Operating break even expected in 2018 ▪ Accelerated shift towards specialty
Slide 17: Optimization
Optimization ~ 10 - 15 % Reduction in potash cost per tonne over 5 Years ~ 5 M Tonne Maintain stable Potash production Shift Phosphate and UK to Specialty
Slide 18: Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty
Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty Fertilizers
Slide 19: Strong Market Position - A Robust Base for Our Future
Strong Market Position - A Robust base for Our Future Highest concentration of Bromine in the World Full phosphate chain from Rock to Salts: largest global merchant marketer of Purified Phosphoric acid Variety of single, multi blends and agglomeration technology in food ingredients
Slide 20: Continuous Quest for Global Opportunities
Continuous Quest for Global Opportunities ▪ Value over volume in phosphate specialties as done in the bromine value chain ▪ Potential in China – dilution of bromine resources and environmental regulation; grow WPA and salts ▪ Drive innovation based on global trends ▪ Bolt on acquisitions
Slide 21: Maintain strength. Provide stability. Outgrow the market
Maintain strength. Provide stability. Outgrow the market Expand margins
Slide 22: Our Strategic Focus
Our Strategic Focus Core Minerals Advanced Crop Nutrition
Slide 23: Our Strategic Focus
Our Strategic Focus Advanced Crop Nutrition Core Minerals
Slide 24: Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty
Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty Fertilizers
Slide 25: Polysulphate as a Flagship of Our Semi-Specialty Business
Mineral Attributes ▪ Multi - nutrients ▪ Extended Availability ▪ Natural fertilizer ICL ’ s Advantages ▪ Sole producer ▪ Existing infrastructure ▪ Market position Polysulphate as a Flagship of Our Semi - Specialty Business A PREMIUM NICHE FERTILIZER WITH UNIQUE BENEFITS % S 14 % K 17 % Ca 6 %
Slide 26: From One Mineral to A World of Value Added Products
From One Mineral to A World of Value Added Products 2017 PK PluS Polysulphate NPK+Poly NPK+Micro NPS+Zinc NPS Potash Plus NPK + Coated PK PluS Polysulphate NP - APP SOP+ Poly NPK+Poly NPK+Micro NPS+Zinc NPS Potash Plus NPK + Coated PK PluS Polysulphate Granulated MOP NP - APP SOP+ Poly NPK+Poly N
Slide 27: Growth in Semi-Specialty sales
Growth From ~$ 100 M to ~$ 400 M Increase in Semi - Specialty sales within 5 years
Slide 28: ICL in the Future
ICL in the Future Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty Fertilizers
Slide 29: Supportive Financial Position to Implement Our Strategy
29 Supportive Financial Position to Implement Our Strategy ▪ Support M&A and growth ▪ Infrastructure development and improvements – from on - going operating cash flow generation Net debt reduction 2016 2017 2017 proforma post divestments** Net Debt/ EBITDA* $ 3,268 M $ 3,037 M ~$ 2,100 M 3.1 2.9 2.
Slide 30: Cultivating the Present. Developing the Future.
Cultivating the Present. Developing the Future.
Slide 31: ICL Specialty Fertilizers
Eli Amon, EVP Specialty Fertilizers ICL Specialty Fertilizers 31 ʤʥʥʤʤʺʠʭʩʧʴʨʮ ʣʩʺʲʤʺʠʭʩʧʺʴʮ CULTIVATING THE PRESENT. DEVELOPING THE FUTURE.
Slide 32: Our Strategic Focus
Our Strategic Focus Advanced Crop Nutrition Core Minerals
Slide 33: Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty
Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty Fertilizers
Slide 34: Our Core Markets and Products Today
34 Our Core Markets and Products Today Turf & Landscape Golf courses, sports fields & landscape Liquid Fertilizers Growing Media Grass Seeds Water Soluble Fertilizers ( WSF) Controlled Release Fertilizers ( CRF) Straights ( MAP / MKP / Pekacid) Plant Protection Products Adjuvants Water Conservation
Slide 35: Fast Growing Industry Driven by Global Trends
Fast Growing Industry Driven by Global Trends Controlled Release Fertilizers Soluble Fertilizers Market Dynamics (Mt) 1.8 3.2 Market Dynamics (Mt) 0.4 1.8 2006 2016 Potential 10 yr Growth Potential market by 2026 : 4.5 Mt 10 % China share of the growth: ~ 70 % 2006 2016 Potential 10 yr Growth Pot
Slide 36: Global Trends Driving Shift Towards Specialty Fertilizers
Global Trends Driving Shift Towards Specialty Fertilizers Population growth, urbanization & reduction in arable land per capita Regulatory Pressure Changing Food Chain Environmental Trends New Grower Practices
Slide 37: Our Strengths
Our Strengths ▪ Leader in Key Markets ▪ Access to P and K resources, unique access to Polysulphate ▪ Wide Portfolio with well established brands & unique products ▪ Profound agronomic knowledge & strong professional sales force ▪ Advanced P and K chemistry ▪ Advanced and flexible manufacturing te
Slide 38: Our Goal: Leadership in Advanced Crop Nutrition Solutions
Our Goal Leadership in Advanced Crop Nutrition Solutions
Slide 39: Leadership in Advanced Crop Nutrition Solutions
Leadership in Advanced Crop Nutrition Solutions Get closer to grower Expand Value - added product portfolio Innovate
Slide 40: Building Leadership in Advanced Crop Nutrition Solutions
Building Leadership in Advanced Crop Nutrition Solutions R&D Infrastructure Precision Ag Business Development
Slide 41: Enhance Infrastructure and M&A Targets
Enhance Infrastructure and M&A Targets Solubles M&A targets Bio stimulants Inhibitors Unique Technology CRF
Slide 42: Leverage PrecisionAg to Grow Sales
Leverage PrecisionAg to Grow sales Digitization of Farms - Sensing, Analytics and Connectivity Solutions Prediction Models: • Pest Out • Water Stress • Yield Weather • Sensing • Prediction Crop Soil Sensors • Moisture • pH • Temperature Aerial Imagery • Drones • Satellites Equipment • Autonomous
Slide 43:
Slide 44: Digital Package to Enhance Sales
Digital Package to Enhance Sales Mobile App Remote sensing of nutrient deficiencies Data analytics used to offer tailored products In - soil temperature sensor Integration of data to an Ag platform Prescription tool: what fertilizer to apply when?
Slide 45: Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty
Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphate Potash Semi - Specialty Fertilizers
Slide 46: Growth through Leadership in Advanced Crop Nutrition
Growth through Leadership in Advanced Crop Nutrition Create best - in - class innovative platform Over $ 1 BN Sales within 5 Years Improve Operating Margin
Slide 47: Cultivating the Present. Developing the Future.
Cultivating the Present. Developing the Future.
Slide 48: ICL Strategy
Asher Grinbaum , Acting CEO ICL Strategy 48 ʤʥʥʤʤʺʠʭʩʧʴʨʮ ʣʩʺʲʤʺʠʭʩʧʺʴʮ CULTIVATING THE PRESENT. DEVELOPING THE FUTURE.
Slide 49: Our Path for Reshaping Our Strategy
Our Path for Reshaping Our Strategy STRATEGIC DESIGN Exit “ Bleeding ” Projects Cost Reduction Strict Capital Management Divestment of Low Synergy Assets Reduce Net Debt Significant Improvement of Financial Results & Position Core Minerals Advanced Crop Nutrition
Slide 50: Strategy Implementation
Strong Focus on Innovation Business Development Continuous Cost Reduction Marketing & Operational Excellence Environment, Safety, Health Development of Human Capital Strategy Implementation Core Minerals Advanced Crop Nutrition
Slide 51: What to expect from ICL in the Future
What to expect from ICL in the Future Optimization Growth in Semi - Specialty Maintain Strength. Provide Stability. Growth through leadership in Advanced Crop Nutrition
Slide 52: Our Strategic Focus
Our Strategic Focus Core Minerals Advanced Crop Nutrition
Slide 53: Cultivating the Present. Developing the Future.
Cultivating the Present. Developing the Future.
Slide 54: Appendix
Appendix
Slide 55: ICL Essential Minerals Profile
Potash 4,773 K ton Phosphate Rock 4,877 K ton Phosphate Fertilizers 2,094 K ton Potash 5,039 K ton Phosphate Fertilizers 2,291 K ton Polysulphate ~300 K ton $ 3.0 Bn 2017 SALES* $ 359 M 2017 OPERATING INCOME** 2017 PRODUCTION 2017 SALES VOLUME ICL Essential Minerals Profile * Before setoffs and inte
Slide 56: ICL Specialty Solutions Profile
Phosphate Acids 26 % Industrial Phosphates 17 % Phosphate Food Additives 36 % ICL Specialty Solutions Profile 56 ~ 3,700 2017 PHOSPHATE VALUE CHAIN SALES* % SALES BY BUSINESS UNIT 22 % $ 2.7 B SALES* $ 554 M OPERATING INCOME** Food Specialties 45 % Industrial Products 33 % Advanced Additives EMPLOYE
Slide 57: ICL Specialty Fertilizers Profile
OPTIMAL PLANT NUTRITION: LESS IS MORE! * FY 2017 ** Before setoffs and eliminations. *** Before G&A expenses. Fertigation/ Soluble Fertilizers Foliar Fertilizer Controlled Release Fertilizers $ 692 M $ 56 M SALES** OPERATING INCOME*** FY 2017 RESULTS REVENUE BY MARKET SEGMENT* Horticulture & Turf 28