Icl Group Ltd. · TASE:ICL
Icl — Investor Day (September 2020)
23 slides from Icl's investor day presentation, Sep 23, 2020
Slide 1: Leadership Innovation Growth
Leadership Innovation Growth R AV I V ZO L L E R PRESIDENT & CEO 1
Slide 2: Important Legal Notes
Important Legal Notes 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 ofer, expressed or implied, or a recommendation to do any transaction in ICL Gro
Slide 3: ICL - At a Glance
ICL - AT A GLANCE Leadership, innovation & Growth 91 YEARS ~11,000 INDUSTRY LEADER #1 ESG Founded in 1929 Employees worldwide Across mineral portfolio Highest ranking among peers $5.3B $1.2B $0.5B 4.2%(1) Sales in 2019 Adjusted EBITDA Adjusted net income Industry leading dividend yield 3 1 Based on
Slide 4: Leadership, Innovation & Growth
LEADERSHIP, INNOVATION & GROWTH Resources Access 250 FTEs 250 patent families to high tech Eco system 20 R&D Centers with 850 granted patents Ideation Technologies 250+ live projects 40 Innovation projects initiated with universities 1000+ ideas in 2020 and startups in last 4 years 4
Slide 5: ICL New Growth Engines
ICL NEW GROWTH ENGINES Leadership, innovation & Growth Alternative Proteins Next Generation Sustainability *DOUBLE / Food Tech Fertilization Applications (Bromine) DIGIT GROWTH Digital Farming / Ag tech New Materials /Skincare & Hygiene / Pharma BY 2025 5 * Targeted
Slide 6: ICL - Strategic Advantages
ICL - STRATEGIC ADVANTAGES UNIQUE STRATEGIC KNOW-HOW STARTUP ASSETS LOCATIONS NATION Dead Sea has the Competitive Agronomy, Access to a highest mineral logistic chemistry & globally leading concentration globally. advantages customer high-tech Exclusive through proximity requirements and agri-tech p
Slide 7: Progress Since Previous Investor Day 2017-2019
PROGRESS SINCE PREVIOUS INVESTOR DAY 2017-2019 FINANCIAL RESULTS - EBITDA Bromine (IP) Potash Phosphate Solutions IAS $405M $438M $27 7M $42M UP 31% UP 34% UP 23% (13%) ICL TOTAL* Net Debt / EBITDA $1 ,198M 2.0x UP 33% 31% 7 * Adjusted EBITDA
Slide 8: ICL Business Leadership
ICL BUSINESS LEADERSHIP Market Share- Specialty Phosphates - Europe, NA, and LatAm1 ICL Others 24% 31% Global Bromine Production Capacity 1 19% Other Chinese 12% China 8% Producers 14% Innophos 8% Prayon 40% ICL Global leadership in Specialty Phosphates USA 27% 17% Potash business cost by Dead Sea o
Slide 9: New Crop Nutrition Set Up
NEW CROP NUTRITION SET UP Leveraging Sales & marketing capabilities, creating synergy CROP NUTRITION 9
Slide 10: 2020-2025 Leadership Strategy: Leadership in Innovation
2020-2025 LEADERSHIP STRATEGY LEADERSHIP IN INNOVATION Breakthrough in Alternative Proteins & Food Tech Next Generation Fertilization New Sustainability Applications (Bromine) Digital Farming & Ag Tech Novel Materials 10
Slide 11: 2020-2025 Leadership Strategy: Leadership in Cost
2020-2025 LEADERSHIP STRATEGY LEADERSHIP IN COST Dead Sea cost reduction following increased capacity and efciency ICL Iberia site consolidation ICL UK Polysulphate capacity increase New WPA plant in China Cost reduction at YPH JV Circular economy and waste recovery initiatives Cost reduction throug
Slide 12: 2020-2025 Leadership Strategy: Industry Leader in ESG
2020-2025 LEADERSHIP STRATEGY INDUSTRY LEADER IN ESG Bloomberg ESG ranking: best among Fertilizer companies (+ included in GEI, gender equality index) A- CDP Carbon ranking: tied for best among fertilizer companies Signifcant emission reduction (2008-19) in NOx (-87%), SOx (-68%), PM (-78%) and GHGs
Slide 13: ICL Main Targets for 2025
ICL MAIN TARGETS FOR 2025 2019 CHANGE 2025 EBITDA ($B) 1.20 +54% 1.80-1.90 FCF ($B) 0.45 +100% 0.85-0.95 CAPEX ($B) 0.73 -25% 0.53-0.57 GHG Emissions (M tonnes CO ) 2 3.19 1 -14% 2.742 1. 2019 not yet analyzed. Estimated reduction is due to ending of trial-runs of ending of trial-runs power plant at
Slide 14: Bromine
BROMINE MARKET LEADER Concreting our global leadership of the bromine market Solidifying global leadership and exploring market opportunities Global leader in elemental bromine and bromine compound production Strategic shift to long-term bromine compound contracts Global leader in R&D activity for n
Slide 15: Specialty Phosphates
SPECIALTY PHOSPHATES LEADING THE WORLD IN SPECIALTY SOLUTIONS From commodities to specialties through innovation and portfolio enhancement Capitalize on alternative protein market potential New food-grade WPA capacity in China Focus on food technologies Focus on industrial technologies Specialty sol
Slide 16: Crop Nutrition
CROP NUTRITION CONSOLIDATION OF ASSETS TO BUILD GLOBAL LEADERSHIP Providing essential solutions, enabling farmers to increase yields and feed the world Strengthening Global Cost Leadership, Product Portfolio & Geographic Reach Increase potash production by ~200kt at the Dead Sea Increase potash prod
Slide 17: Summary: 5-Year Sales Development Target
SUMMARY % 5-YEAR SALES DEVELOPMENT TARGET ($M) 1 0 : > G R C A 5 .3 % 7,100-7,300 G R : 500 CA 300 500 650 5,271 2019 Crop Specialty Bromine M&A 2025 Target Sales Nutrition Solutions Compounds sales 17
Slide 18: Summary: 5-Year Free Cash Flow Development Target
SUMMARY 5-YEAR FREE CASH FLOW DEVELOPMENT TARGET ($M) 850-950 0 % 1 0 446 2019 Free Cash Flow 2025 Free Cash Flow Target 18
Slide 19: Summary: 5-Year EBITDA Development Target
SUMMARY 5 % > 1 5-YEAR EBITDA DEVELOPMENT TARGET ($M) R : A G 1,800-1,900 C 1.75-1.85 R : 7. 5% CAG 150 150 100 250 1,198 2019 Crop Specialty Bromine M&A 2025 Target EBITDA* Nutrition Solutions Compounds EBITDA * Adjusted EBITDA 19
Slide 20: Summary: 5-Year EBITDA Development Target
SUMMARY 5-YEAR EBITDA DEVELOPMENT TARGET ($M) 1,800-1,900 1.75-1.85 150 150 100 250 1,198 550 of 650 (85%) Growth in specialties! 2019 Crop Specialty Bromine M&A 2025 Target SPECIALITY EBITDA* Nutrition Solutions Compounds EBITDA COMMODITY * Adjusted EBITDA 20
Slide 21: Thank You!
Thank You! 21
Slide 22: Reconciliation Tables
Reconciliation Tables !"#$%&'()*+,'-#$.&%+ /012+ /013+ /014+ /015+ !"#$%"&'()*%(+,&-.($) /012) /013) /014) !""#$%&'()*+,'-$ ./01$ !"#$%& '('20& '(')*& '(+),& '(*'-& !"#$%& '(')*& '('+,& '('''& !"#$%& '()& !"#$%&*+&$,*$-."#%& '/0& ./$0"123&42567$& ++8& +98& *::& **-& -.$/"012&31456$& *7& '',& '8)& 12
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures We disclose in presentations non-IFRS fnancial measures titled adjusted EBITDA, segment EBITDA, segment EBITDA margin and free cash fow. Our management uses such non-GAAP measures to facilitate operating performance comparisons from period to period and present free cash