Icl Group Ltd. · TASE:ICL
Icl — Israel Chemicals — Q3 2015 Earnings Presentation
18 slides from Icl's earnings presentation, Nov 12, 2015
Slide 1: Q3 2015 Results
Mr. Stefan Borgas | President & CEO November 12 , 2015 Q 3 2015 Results
Slide 2: Important Legal Notes
Important Legal Notes The information delivered or to be delivered to you does not constitute an offer or a recommendation to do any transaction in Israel Chemicals Ltd . (ICL) securities . Certain statements in this presentation and other oral and written statements made by ICL from time to time,
Slide 3: Highlights & Financial Results
Highlights & Financial Results $ millions Q 3 15 Q 3 14 % change Q 2 15 % change Revenues 1 , 379 1 , 560 ( 11.6 )% 1 , 196 15.3 % Operating income 197 262 ( 24.8 )% 107 84.1 % Adjusted operating income 242 262 ( 7.6 )% 251 ( 3.6 )% Net income 121 179 ( 32.4 )% 75 61.3 % Adjusted net income 154 17
Slide 4: Business Environment & Major Developments
Business Environment & Major Developments 4 ICL Fertilizers ▪ Continued potash market headwinds . Expected short term uncertainty triggered reactions by several suppliers ▪ Continued cost reduction in ICL's potash and phosphate operations helped to offset lower volumes and prices ▪ Potash production
Slide 5: Polysulphate: The Future of ICL-UK
Polysulphate TM : The Future of ICL - UK 5 Moving from high - cost potash to low - cost Polysulphate TM operations 0 200 400 600 800 1,000 1,200 2014 2020 Polysulphate TM production plan K Tonnes □ “Economic” potash reserves at ICL - UK are running out □ ICL plans to transition to a pure Polysulphat
Slide 6: Polysulphate: Solid Market Potential
6 Polysulphate™: Solid Market Potential Readily available new natural fertilizer in the market containing four nutrients : Sulphur, Potassium, Magnesium and Calcium – a substitute for some fertilizers ~ 50 % ~ 14 % K S ~ 36 % Mg+Ca □ Over 200 million tonnes resources in the ICL UK potash mine □ Low
Slide 7: ICL's Potash Sub-Segment Production Moderately Increasing while Adding Specialty Products
ICL's Potash Sub - Segment P roduction Moderately I ncreasing while Adding Specialty Products 7 Potential gradual increase of production capability excluding ICL UK 5.15 5.9 7.3 0.12 1 2 0.5 0 2 4 6 8 10 12 14 2014A 2020E 2025E Million tonnes Potash Polysulphate SOP Incremental potash production – s
Slide 8: ICL to Become a Leading Player in China's Phosphate Sector
ICL to Become a Leading Player in China’s Phosphate Sector 8 x JV includes upstream mining , bulk fertilizers and downstream specialty businesses x R&D platform : 11 projects in Food, Engineered Materials, Agro and process improvement . Additional projects by year - end x A key milestone in our stra
Slide 9: Improving Bromine and Bromine Compounds Margins While Maintaining Historical Market Share
9 Improving Bromine and Bromine Compounds Margins While Maintaining Historical Market Share □ Elemental bromine market prices in China have increased □ Bromine compound prices increased by about 15 % especially in Asia □ Price increase will expand to other markets as well, subject to contract timing
Slide 10: Financial Results
Financial Results Mr. Kobi Altman Executive VP & CFO
Slide 11: Q3 2015 Results
1 , 560 1 , 379 17 65 84 75 74 30 Q 3 2015 Results Q 3 2015 Sales Q 3 2015 Adjusted o perating income Numbers may not add up due to rounding $ millions Q 3 15 Q 3 14 % change Q 2 15 % change Revenues 1 , 379 1 , 560 ( 11.6 )% 1 , 196 15.3 % Operating income 197 262 ( 24.8 )% 107 84.1 % Adjusted o
Slide 12: Potash Bridge Analysis
Potash Bridge Analysis Sales ($M) Adjusted Operating income* ($M) Numbers may not add up due to rounding 450 387 7 18 38 131 135 7 21 17 7 * Excluding the following one - time items : claim provision of $ 3 million, electricity system management provision for prior periods of $ 5 million , 2014 R
Slide 13: Reduced Average Cost Per Tonne - Potash
Reduced Average Cost Per Tonne - Potash 13 * Calculation based on adjusted full costs, including COGS, royalties, depreciation, freight and transportation, G&A, S&M. ▪ Increased production at our Dead Sea and UK facilities ▪ Labor cost reduction and increased operating efficiency ▪ Depreciation of e
Slide 14: Specialty and Phosphate Fertilizers
Specialty and Phosphate Fertilizers Sales ($M) Adjusted Operating income* ($M) Numbers may not add up due to rounding 424 380 16 38 22 * Excluding the following one - time items : fire impact of $ 9 million, income from insurance claim due to the Rotem fire of $ 7 million and electricity system m
Slide 15: Reduced Cost for Phosphate Rock, Phosphoric Acid, and Phosphate Fertilizers
Reduced Cost for Phosphate Rock, Phosphoric Acid, and Phosphate Fertilizers 15 Cost reduction initiatives are bearing fruits Green phosphoric Acid Cost $/ tonne FOB GTSP Cost $/ tonne FOB White phosphoric Acid Cost $/ tonne FOB Phosphate Rock Cost $/ tonne FOB
Slide 16: Industrial Products
Industrial Products Sales ($M) Adjusted Operating income* ($M) Numbers may not add due to rounding 328 282 9 25 19 11 36 36 2 9 11 * Excluding the following one - time items : legal claim provision of $ 2 million and strike related expenses of $ 6 million.
Slide 17: Performance Products
Performance Products Sales ($M) Operating income ($M) Numbers may not add due to rounding 451 419 16 63 84 22 5 66 59 2 10 11 5 3
Slide 18: Thank You
Thank You SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Israel Chemicals Ltd. By: /s/ Kobi Altman Name: Kobi Altman Title: Executive Vice President an