Icl Group Ltd. · TASE:ICL
Icl — Q4 2021 Earnings Presentation
36 slides from Icl's earnings presentation, Feb 9, 2022
Slide 1: Fourth Quarter 2021 Financial Results
Fourth Quarter 2021 Financial Results Raviv Zoller President and CEO February 9, 2022
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: Fourth quarter summary
Fourth quarter summary Record specialties results with higher commodity prices Significant growth All-time fourth Continued strategic in sales quarter record focus on long-term EBITDA specialty solutions Commodity upside All four businesses Accelerated cash flow momentum delivered double-digit gener
Slide 4: Fourth quarter 2021 key financial highlights
Fourth quarter 2021 Key financial highlights US$M 4Q’21 4Q’20 YoY Change ex. per share Sales $2,038 $1,317 55% Gross profit $857 $405 112% Gross margin 42% 31% 1130 bps Operating income $461 $139 232% Adjusted operating income(1) $458 $143 220% Adjusted operating margin(1) 22% 11% 1162 bps Net incom
Slide 5: Key fourth quarter financial metrics
Key fourth quarter financial metrics Outstanding year-over-year improvement Sales Adjusted EBITDA(1) Operating Cash Flow US$B US$M US$M Up 55% YoY Up 115% YoY Up $86M YoY $2.0 $1.8 $1.6 $1.5 $575 $1.3 $421 $351 $344 $295 $273 $268 $258 $242 $206 28% 24% 22% 20% 20% 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 4Q'2
Slide 6: Industrial Products
Industrial Products Record quarterly sales Key highlights Sales $600 US$M $500 +26% • Strong demand across key products and regions $422 $400 $336 • Continued benefit from long-term, strategic agreements $300 $200 • Growth in clear brine fluids sales 4Q'20 4Q'21 • Significant contribution from phosp
Slide 7: Potash
Potash Continued strength in price and demand Key highlights Sales $800 +84% $698 US$M • Average realized price per ton increased to $487 $600 • Up 114% YoY, driven by strong global crop demand $379 and allocation optimization $400 $200 • Dead Sea – P-9 pumping operations commenced in early 2022 4Q'
Slide 8: Phosphate Solutions
Phosphate Solutions Record quarterly sales and profit for specialties Key highlights Sales $800 +22% US$M $609 $600 $501 • Specialty food and industrial sales increased, with strong demand across all regions $400 $373 Specialty $291 • New alternative-protein plant launched in December Commodity $200
Slide 9: Innovative Ag Solutions
Innovative Ag Solutions Positive momentum continued, with record organic growth Key highlights Sales $500 +133% US$M $380 $400 • Strong demand and higher volumes across most $300 $157 regions and product lines Acquisitions $200 $163 • Robust growth globally for turf and ornamental $223 $100 • Record
Slide 10: Impactful events
Impactful events Company continuing to target excellence in 2022 Innovation Sustainability Partnership • Internal innovation delivered • Launched Green Sdom initiative • Supplying clear brine fluids ~$40M of ‘21 annual efficiencies • Awarded EcoVadis Gold medal to the UAE • Internal accelerator achi
Slide 11: Key 2021 takeaways
Key 2021 takeaways Consistent strength, with EBITDA improvement across all divisions • Record specialties performance, with all-time record profitability, plus commodity upside • Agriculture – expanded reach into Brazil via acquisitions and provided additional profitability and seasonal balance betw
Slide 12: Outlook for 2022
Outlook for 2022 Maintaining long-term specialties focus • Firm commodity prices through first half • Strong visibility for specialties • Investing to support future growth, with higher growth CAPEX focused on long-term contracts and additional infrastructure • Generating new opportunities and effic
Slide 13: Fourth Quarter 2021 Financial Results
Fourth Quarter 2021 Financial Results Aviram Lahav CFO
Slide 14: Fourth quarter 2021 key financial highlights
Fourth quarter 2021 Key financial highlights US$M 4Q’21 4Q’20 YoY Change ex. per share Sales $2,038 $1,317 55% Gross profit $857 $405 112% Gross margin 42% 31% 1130 bps Operating income $461 $139 232% Adjusted operating income(1) $458 $143 220% Adjusted operating margin(1) 22% 11% 1162 bps Net incom
Slide 15: Pricing across mineral value chain
$300 $600 $900 $0 $20,000 $40,000 $0 4Q'11 US$/ton US$/day 4Q'11 2Q'12 2Q'12 4Q'12 4Q'12 2Q'13 2Q'13 4Q'13 GMOP FOB NOLA 4Q'13 2Q'14 2Q'14 4Q'14 4Q'14 2Q'15 2Q'15 4Q'15 4Q'15 2Q'16 Supramax Timecharter Average 2Q'16 4Q'16 Commodity price upcycle 4Q'16 2Q'17 2Q'17 4Q'17 4Q'17 2Q'18 2Q'18 4Q'18 4Q'18
Slide 16: Fourth quarter 2021 sales bridges
Fourth quarter 2021 Sales bridges Sales Sales by segment US$M US$M $558 $217 $380 IAS $108 ($9) ($8) $2,038 Acquisitions 41% $319 $2,038 Organic 59% $157 $14 $86 $609 PS Specialty 61% $1,317 $1,317 Commodity 39% $1,317 Potash $698 IP $422 Other ($71) Rate Potash Brazil IAS 4Q'20 Price 4Q'21 4Q'21 4Q
Slide 17: Fourth quarter 2021 profit bridges
Fourth quarter 2021 Profit bridges Adjusted EBITDA(1) Adjusted EBITDA(1) by segment US$M US$M $558 ($102) $759 ($20) $739 ($58) $37 $71 ($88) $593 ($18) $48 IAS ($32) $575 $575 Acquisitions 58% $205 $575 $146 Organic 42% PS $28 $7 Specialty 40% $26 Commodity 60% $288 Potash $268 $268 $268 IP $129 Po
Slide 18: Full year 2021 sales bridges
Full year 2021 Sales bridges Sales Sales by segment US$M US$M $514 $1,081 $137 IAS $484 $1,245 $585 ($33) $6,955 $6,955 $353 Acquisitions 27% $341 Organic 73% $362 $2,432 PS $5,043 Specialty 55% $5,043 Commodity 45% $1,931 Potash $1,617 IP Rate Potash FY'20 FY'21 IAS Brazil Price PS IP FY'20 Exchang
Slide 19: Full year 2021 profit bridges
Full year 2021 Profit bridges Adjusted EBITDA(1) Adjusted EBITDA(1) by segment US$M US$M $1,081 ($246) $1,995$1,968 ($27) $94 $1,642 $246 ($154) ($118) ($54) $1,696 $159 IAS $278 ($86) $1,642 Acquisitions 38% $1,642 Organic 62% $110 $522 $120 $60 PS Specialty 40% Commodity 60% $990 $990 $990 $564 Po
Slide 20: Financial strength
Financial strength Continued growth in cash flow Highlights for 4Q’21 • Net debt to adjusted EBITDA improved to 1.4 • Operating cash flow of $344M vs. $258M in 4Q’20 • Free cash flow of $166 vs. $80M in 4Q’20 Highlights for FY’21 • Completed ~$550M of acquisitions • Monetized investments and exited
Slide 21: Guidance
Guidance Full year 2022 • Expect adjusted EBITDA range of $1,850 million to $2,050 million(1) • Of which, EBITDA of specialty businesses to represent between $875 million to $925 million of FY’22 (1) See guidance and non-GAAP financial measures in appendix. Note: Adjusted EBITDA is a non-GAAP measur
Slide 22: Thank you
Thank you C o n t a c t P e g g y. Re i l l y T h a r p @ i c l - g r o u p . c o m f o r m o r e i n f o r m a t i o n o n I C L View our interactive data tool at https://investors.icl-group.com/interactive -data-tool/default.aspx
Slide 23: Appendix
Appendix Fourth Quarter 2021 Financial Results
Slide 24: Industrial Products
Industrial Products Fourth quarter and full year 2021 Industrial Products US$M 4Q'21 4Q'20 FY'21 FY'20 US$M 4Q Sales FY Sales Segment sales $422 $336 $1,617 $1,255 2020 $336 $1,255 Sales to external customers $418 $333 $1,601 $1,242 Sales to internal customers $4 $3 $16 $13 Quantity $18 $198 Segment
Slide 25: Potash
Potash Fourth quarter and full year 2021 Potash US$M 4Q'21 4Q'20 FY'21 FY'20 US$M 4Q Sales FY Sales Segment sales $698 $379 $1,931 $1,346 2020 $379 $1,346 Sales to external customers $541 $276 $1,401 $979 Sales to internal customers $18 $28 $94 $95 Quantity $4 $72 (1) Other and eliminations $139 $75
Slide 26: External potash metrics
External potash metrics Average market prices and imports Average prices 4Q’21 4Q’20 YoY Change 3Q’21 QoQ Change Granular potash – Brazil $787 $248 217% $674 17% CFR spot US$ per ton Granular potash – Northwest Europe €543 €234 132% €409 33% CIF spot/contract € per ton Standard potash – Southeast As
Slide 27: Phosphate Solutions
Phosphate Solutions Fourth quarter and full year 2021 Phosphate Solutions US$M 4Q'21 4Q'20 FY'21 FY'20 US$M 4Q Sales FY Sales Segment sales $609 $501 $2,432 $1,948 2020 $501 $1,948 Sales to external customers $580 $479 $2,334 $1,871 Sales to internal customers $29 $22 $98 $77 Quantity ($30) $35 Segm
Slide 28: External phosphate metrics
External phosphate metrics Commodities market Average prices ($/ton) 4Q’21 4Q’20 YoY Change 3Q’21 QoQ Change DAP $809 $369 119% $643 26% CFR India spot TSP Granular $677 $262 158% $629 8% CFR Brazil spot SSP $395 $179 121% $334 18% CFR Brazil inland 18% to 20% P2O5 spot Sulfur $226 $74 205% $176 28%
Slide 29: Innovative Ag Solutions
Innovative Ag Solutions Fourth quarter and full year 2021 Innovative Ag Solutions US$M 4Q'21 4Q'20 FY'21 FY'20 US$M 4Q Sales FY Sales Segment sales $380 $163 $1,245 $731 2020 $163 $731 Sales to external customers $374 $158 $1,226 $715 New Brazilian Businesses’ $157 $341 Sales to internal customers $
Slide 30: Consolidated results analysis
Consolidated results analysis Fourth quarter 2021 Operating US$M Sales Expenses EBITDA Profit 4Q’20 $1,317 ($1,178) $139 Total adjustments 4Q’20* - $4 $4 Adjusted 4Q’20 figures $1,317 ($1,174) $143 $268 Notes: New Brazilian Businesses’ Positive – includes acquisition of Agro Fertiláqua Participações
Slide 31: Sales by geographic location
Sales by geographic location Fourth quarter 2021 Sales Industrial Products Potash Phosphate Solutions Innovative Ag Solutions US$M 4Q’21 4Q’20 4Q’21 4Q’20 4Q’21 4Q’20 4Q’21 4Q’20 Europe $123 $120 $121 $106 $193 $155 $90 $67 Asia $170 $121 $199 $116 $148 $151 $39 $27 North America $95 $66 $81 $45 $12
Slide 32: Finance expenses
Finance expenses Fourth quarter and full year 2021 US$M 4Q’21 4Q’20 FY’21 FY’20 Average debt(1) $2,968 $2,755 $2,914 $2,828 Annual interest rate 4.0% 3.9% 3.8% 3.8% Interest expenses $30 $27 $111 $108 Interest income ($1) - ($2) ($2) Interest capitalization ($3) ($6) ($18) ($24) Interest expenses, n
Slide 33: Adjusted effective tax rate
Adjusted effective tax rate Fourth quarter and full year 2021 US$M 4Q’21 4Q’20 FY’21 FY’20 Adjusted income before tax(1) $423 $98 $1,076 $356 Tax rate 17% 19% 21% 21% Tax expenses $73 $19 $224 $75 Carryforward losses for which deferred ($3) ($2) ($13) $1 taxes were not recognized and other Exchange
Slide 34: Reconciliation tables
Reconciliation tables Slide one of two Calculation of segment EBITDA Industrial Phosphate Innovative Potash and margin Products Solutions Ag Solutions US$M 4Q’21 4Q’20 4Q’21 4Q’20 4Q’21 4Q’20 4Q’21 4Q’20 Segment sales $422 $336 $698 $379 $609 $501 $380 $163 Segment operating profit $111 $80 $244 $40
Slide 35: Reconciliation tables
Reconciliation tables Slide two of two Calculation of adjusted EBITDA 4Q’21 3Q’21 2Q’21 1Q’21 4Q’20 FY’21 FY’20 FY’19 US$M Net income attributable to $283 $225 $140 $135 $65 $783 $11 $475 shareholders of the company Financing expenses, net $38 $34 $30 $20 $46 $122 $158 $129 Taxes on income $128 $45
Slide 36: 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