Slide 1: Second Quarter 2021 Financial Results
Second Quarter 2021 Financial Results Raviv Zoller President and CEO July 28, 2021
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 Certain market and/or industry data used in this presentation were obtained from internal during this presentation does not con
Slide 3: 2Q'21 Highlights
2Q’21 Highlights Industrial Phosphate Innovative Products Potash Solutions Ag Solutions Record quarter driven by Successful completion of Record breaking quarter, with Sales growth across all increased demand for Dead Sea annual maintenance strength in specialty food product lines, with higher speci
Slide 4: Creating impact and sustainable growth
Creating impact and sustainable growth Committed to growing in our target markets Agriculture Food Industrial • Acquisitions in Brazil to • Continued focus on specialties • Shift to long-term provide seasonal balance, growth, with alternative contracts, with investments opportunities for growth prot
Slide 5: Key financial metrics
Key financial metrics Substantial year-over-year improvement Sales Adjusted EBITDA(1) Operating Cash Flow US$B US$M US$M Up 34% YoY Up 43% YoY Up $65M YoY $1.6 $1.5 $1.3 $351 $1.2 $1.2 $295 $268 $258 $246 $242 $226 $203 $206 $177 22% 20% 19% 20% 20% 20% 17% 15% 14% 15% 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21
Slide 6: Second quarter 2021 key financial highlights
Second quarter 2021 Key financial highlights US$M 2Q’21 2Q’20 YoY Change Sales $1,617 $1,203 34% Gross profit $570 $320 78% Gross margin 35.3% 26.6% 870 bps Operating income $243 ($169) n/m Adjusted operating income(1) $236 $128 84% Adjusted operating margin 14.6% 10.6% 400 bps Net income, attributa
Slide 7: Industrial Products
Industrial Products Record quarter, with continued strong end-market demand Key highlights Sales $500 US$M +44% $400 • Record sales and EBITDA, benefitting from $410 strong demand $300 $285 $200 • Record results for bromine, phosphorous and $100 magnesia-based products 2Q'20 2Q'21 • Continued strong
Slide 8: Potash
Potash Continued good environment, with additional upside expected Key highlights Sales $500 US$M +21% $400 • Dead Sea: successful one-week maintenance $412 shutdown in early April, with ~80 projects completed $300 $340 $200 • ICL Iberia: ramp project finalized, with production ramping up $100 2Q'20
Slide 9: Phosphate Solutions
Phosphate Solutions Record quarter, with strong demand for specialties Key highlights Sales $800 +42% US$M $600 • Record results for specialties, commodities $623 and YPH joint venture $400 $439 $200 • Specialties: food and industrial saw strong demand and $0 higher prices across most regions and in
Slide 10: Innovative Ag Solutions
Innovative Ag Solutions All products showed year-over-year growth Key highlights Sales $300 US$M +21% • All product lines showed sales growth, $237 due to higher prices and volumes $200 $196 • Record turf and ornamental sales, with all geographies improving $100 and new markets doing especially well
Slide 11: Key takeaways
Key takeaways Specialties provide balanced long-term growth • Consistently seeing strength in all businesses, with adjusted EBITDA improvement across all divisions • Focusing on long-term partnerships with customers in Industrial Products • Completion of Potash capacity increases • Driving Phosphate
Slide 12: Second Quarter 2021 Financial Results – CFO
Second Quarter 2021 Financial Results Kobi Altman CFO
Slide 13: Financial strength
Financial strength Continued growth in cash flow Highlights for 2Q’21 • Operating cash flow of $242M vs. $177M in 2Q’20 ‐ Up $105M YoY in 1H’21 • Free cash flow(1) of $94M vs. $20M in 2Q’20 ‐ Up $105M YoY in 1H’21 • Net debt to adjusted EBITDA improved to 2.1 times • Investment grade debt ratings re
Slide 14: Pricing across mineral value chain
$800 $0 $400 $20,000 $0 $40,000 2Q'11 US$/ton US$/day 2Q'11 4Q'11 4Q'11 2Q'12 2Q'12 4Q'12 4Q'12 2Q'13 GMOP FOB NOLA 2Q'13 4Q'13 4Q'13 2Q'14 2Q'14 4Q'14 4Q'14 2Q'15 2Q'15 4Q'15 Supramax Timecharter Average 4Q'15 Commodity price upcycle 2Q'16 2Q'16 4Q'16 4Q'16 2Q'17 2Q'17 4Q'17 4Q'17 2Q'18 2Q'18 4Q'18
Slide 15: Sales and profit bridges
Second quarter 2021 Sales and profit bridges Sales Adjusted EBITDA(1) US$M US$M $175 $62 $175 $237 $177 $1,617 IAS ($13) $401 $395 ($49) ($6) $623 ($30) ($14) $27 $1,203 PS $42 $351 $351 IAS Spec 53% Comm 47% $134 Potash $246 PS $412 Spec 37% $85 Comm 63% Potash $410 IP $128 IP Other ($65) Other ($2
Slide 16: Results by segment
Second quarter 2021 Results by segment Sales Adjusted EBITDA(1) US$M US$M $41 $8 $184 $72 $1,617 $125 $5 $74 $1,203 $40 $5 ($19) $351 $246 IP 2Q'20 Potash 2Q'21 IP 2Q'20 Potash PS 2Q'21 IAS Other PS IAS Other (1) Adjusted EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix.
Slide 17: Guidance
Guidance Full year 2021 Raising expectations • Expect adjusted EBITDA range of $1,315 million to $1,375 million(1) • Follows another quarter of strong results • Includes South American Plant Nutrition acquisition (1) See guidance and non-GAAP financial measures in appendix. Note: Adjusted EBITDA is
Slide 18: Sustainability
Sustainability . Emissions TCFD/SASB Disclosure Bloomberg ESG Index Bloomberg 2021 GEI Significant reduction(1) with Adopting framework for Industry leading member Included for 3rd continued progress 2021 reporting for 4th straight year straight year ICL Iberia MAALA Carbon Disclosure Project FTSE4G
Slide 19: Thank you
Thank you Contact Peggy.ReillyTharp@icl-group.com for more information on ICL View our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 20: Appendix
Appendix Second Quarter 2021 Financial Results
Slide 21: Industrial Products
Industrial Products Second quarter and first half 2021 Industrial Products US$M 2Q’21 2Q’20 1H’21 1H’20 US$M 2Q Sales 1H Sales Segment sales $410 $285 $808 $649 2020 $285 $649 Sales to external customers $406 $281 $800 $642 Quantities $90 $110 Sales to internal customers $4 $4 $8 $7 Prices $27 $34 S
Slide 22: Potash
Potash Second quarter and first half 2021 Potash US$M 2Q’21 2Q’20 1H’21 1H’20 US$M 2Q Sales 1H Sales Segment sales $412 $340 $797 $654 2020 $340 $654 Sales to external customers $296 $253 $550 $479 Quantities $8 $44 Sales to internal customers $27 $24 $49 $47 Prices $58 $81 (1) Other and elimination
Slide 23: External potash metrics
External potash metrics Average market prices and imports Average prices 2Q’21 2Q’20 YoY Change 1Q’21 QoQ Change Granular potash – Brazil 383 222 72.5% 283 35.3% CFR spot US$ per ton Granular potash – Northwest Europe 256 245 4.5% 235 8.9% CIF spot/contract € per ton Standard potash – Southeast Asia
Slide 24: Phosphate Solutions
Phosphate Solutions Second quarter and first half 2021 Phosphate Solutions US$M 2Q’21 2Q’20 1H’21 1H’20 US$M 2Q Sales 1H Sales Segment sales $623 $439 $1,168 $941 2020 $439 $941 Sales to external customers $599 $421 $1,124 $904 Quantities $67 $55 Sales to internal customers $24 $18 $44 $37 Prices $8
Slide 25: External phosphate metrics
External phosphate metrics Commodities market Average prices ($/ton) 2Q’21 2Q’20 YoY Change 1Q’21 QoQ Change DAP $565 $316 79% $455 24% CFR India spot TSP $527 $245 115% $408 29% CFR Brazil spot SSP $250 $173 45% $206 21% CPT Brazil inland 18% to 20% P2O5 spot Sulfur $185 $60 208% $138 34% Bulk FOB
Slide 26: Innovative Ag Solutions
Innovative Ag Solutions Second quarter and first half 2021 Innovative Ag Solutions US$M 2Q’21 2Q’20 1H’21 1H’20 US$M 2Q Sales 1H Sales Segment sales $237 $196 $478 $395 2020 $196 $395 Sales to external customers $235 $193 $473 $389 Quantities $17 $41 Sales to internal customers $2 $3 $5 $6 Prices $8
Slide 27: Consolidated results analysis – Second quarter 2021
Consolidated results analysis Second quarter 2021 Operating US$M Sales Expenses EBITDA Income 2Q’20 $1,203 ($1,372) ($169) Total adjustments Q2 2020* - $297 $297 Adjusted Q2 2020 figures $1,203 ($1,075) $128 $246 Notes: Positive – higher sales volumes of bromine- and phosphorus-based flame retardant
Slide 28: Consolidated results analysis – First half 2021
Consolidated results analysis First half 2021 Operating US$M Sales Expenses EBITDA Income 1H’20 $2,522 ($2,559) ($37) Total adjustments YTD 2020* - $297 $297 Adjusted YTD 2020 figures $2,522 ($2,262) $260 $496 Notes: Positive – higher sales volumes of bromine- and phosphorus-based flame retardants,
Slide 29: Sales by geographic location
Sales by geographic location Second quarter 2021 Innovative Industrial Phosphate Sales Potash Ag Other Activities Reconciliations Consolidated Products Solutions US$M Solutions 2Q’21 2Q’20 2Q’21 2Q’20 2Q’21 2Q’20 2Q’21 2Q’20 2Q’21 2Q’20 2Q’21 2Q’20 2Q’21 2Q’20 Europe $142 $99 $96 $84 $185 $154 $113
Slide 30: Finance expenses
Finance expenses Second quarter and first half 2021 US$M 2Q’21 2Q’20 1H’21 1H’20 Average net debt(1) $2,800 $2,800 $2,800 $2,700 Weighted average interest rate 3.8% 3.9% 3.8% 4.0% Interest expenses $26 $27 $53 $54 Interest capitalization ($5) ($6) ($11) ($12) Interest expenses, net $21 $21 $42 $42 T
Slide 31: Adjusted effective tax rate
Adjusted effective tax rate Second quarter and first half 2021 US$M 2Q’21 2Q’20 1H’21 1H’20 Adjusted income before tax(1) $207 $98 $372 $179 Normalized tax rate 25% 20% 23% 21% Normalized tax expenses $52 $20 $86 $37 Carryforward losses for which deferred $1 $1 $4 $7 taxes were not recognized and ot
Slide 32: Reconciliation tables – slide one of two
Reconciliation tables Slide one of two Calculation of segment EBITDA Industrial Phosphate Innovative Potash and margin Products Solutions Ag Solutions US$M 2Q’21 2Q’20 2Q’21 2Q’20 2Q’21 2Q’20 2Q’21 2Q’20 Segment sales $410 $285 $412 $340 $623 $439 $237 $196 Segment profit $114 $70 $43 $38 $77 $8 $20
Slide 33: Reconciliation tables – slide two of two
Reconciliation tables Slide two of two Calculation of adjusted EBITDA 2Q’21 1Q’21 4Q’20 3Q’20 2Q’20 FY’20 FY’19 FY’18 US$M Net income attributable to $140 $135 $65 $54 ($168) $11 $475 $1,240 shareholders of the company Financing expenses, net $30 $20 $46 $29 $31 $158 $129 $158 Taxes on income $64 $2
Slide 34: Guidance and non-GAAP financial measures
Guidance and non-GAAP financial measures Guidance The company only provides guidance on a non-GAAP basis. We do not provide a reconciliation of forward-looking adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting and quantifying certain amounts necessar