Slide 1: Q4 and FY2018 Results
Q4 and FY2018 Results Raviv Zoller, President & CEO February 6, 2019
Slide 2: Important Legal Notes
Aicl 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 offer, expressed or implied, or a recommendation to do any transaction in I
Slide 3: Q4 and FY2018 Highlights
Aicl Q4 and FY2018 Highlights ✓ Strong performance in Q4 and in FY2018 deriving from top and bottom line growth in all of ICL’s value chains, overcompensating for divested businesses ✓ Annual net income more than tripled compared to 2017. Adjusted net income excluding divested businesses(1) increase
Slide 4: Continued Strong Performance
Aicl Continued Strong Performance $ millions FY 2018 FY 2017 % change Q4 18 Q4 17 % change Sales 5,556 5,418 3% 1,410 1,361 4% Sales excluding divested businesses(4) 5,506 5,075 8% 1,410 1,301 8% Operating income 1,519 629 141% 166 189 (12)% Adjusted operating income 750 530 42% 214 153 40% excludin
Slide 5: Industrial Products Business Performance
Aicl Industrial Products Business Performance 2018 RESULTS Q4 RESULTS $ millions ✓ All-time record annual segment profit ✓ Higher realized prices across the bromine value chain, as well as higher +14% prices & volume of phosphorous derivatives 83 73 ✓ Higher prices drove approx. 2% expansion in quar
Slide 6: Potash Business Performance
Aicl Potash Business Performance 2018 RESULTS Q4 RESULTS $ millions ✓ Record annual production of 3.8 million tonnes at the Dead Sea ✓ Shift to operating profit in ICL’s potash operations in Spain ✓ Average realized sales price increased by over 20% QoQ to $292/t and by 18% YoY to $278/t ✓ On-going
Slide 7: Phosphate Solutions Business Performance
Aicl Phosphate Solutions Business Performance 2018 RESULTS Q4 RESULTS ✓ Higher prices more than compensated for $ millions an increase of $50 million in raw material costs, leading to segment profit margins of +2% 10% in 2018 compared to 7% in 2017 ----- ► ✓ A 10-year record in specialty phosphates
Slide 8: IAS Business Performance
Aicl IAS Business Performance 2018 RESULTS Q4 RESULTS $ millions ✓ Annual top line growth in-line with market growth, increase in sales to the growing markets of China, Brazil and India ✓ Profit margin eroded as we continue to invest in future growth ✓ Q4 Sales decreased due to plant maintenance in
Slide 9: Favorable Market Pricing: Back to Mid-Cycle Prices
Aicl Favorable Market Pricing: Back to Mid-Cycle Prices 850 PHOSPHORIC ACID CFR INDIA (3) PRICE DEVELOPMENT 500 a 5? a 5? aA \\ \\ \\ /A א5“ל /?ו% v# >6^ א^׳ c^א^ ׳ ^א > ?>'׳עq **y ׳'־?זa o s'׳'׳y 0*'׳a o ©*'n ? >$*'-a ° ®״'־יn >$*' yo\°'׳עי׳ ־ ^y ?>׳ -y עי׳ ׳עי-׳עי
Slide 10: Sequential Growth Throughout 2018
Aicl Sequential Growth Throughout 2018 $ millions Adj. operating income Adjusted EBITDA Operating cash flow excluding divested businesses(1) excluding divested businesses(1) ................... Trend line ................... Trend line ................... Trend line (1) Adjusted operating income exc
Slide 11: 2018 Achievements
Aicl 2018 ACHIEVEMENTS ✓ All four divisions contributed to strong financial results ✓ Successful completion of the Fire Safety and Oil Additives businesses’ divestment ✓ Debt Optimization ✓ Successful implementation of the Value over Volume approach in the specialty businesses ✓ Successful alignment
Slide 12: Kobi Altman, CFO
Kobi Altman, CFO
Slide 13: Higher Prices Across the Board Drive Annual Sales Growth
Aicl Higher Prices Across the Board Drive Annual Sales Growth Businesses(1) businesses(1) See Q4 2018 PR for a reconciliation of adjusted sales excluding divested businesses to sales. Phosphate Solutions contribution to sales ($80 million) excludes the 2017 and 2018 sales of the divested business of
Slide 14: As Well As Significantly Higher Adjusted Operating Income
Aicl ... As Well As Significantly Higher Adjusted Operating Income FY 2017 Adjusted 2017 divested FY 2017 adjusted Potash Phosphate Industrial Innovative Ag Set-offs & FY 2018 adjusted 2018 divested FY 2018 Adjusted operating income Businesses operating income Solutions Products Solutions eliminatio
Slide 15: Q4 2018 Sales Growth
Aicl Q4 2018 Sales Growth Sales ($ millions) 17 14 9 14 60 Q4 2017 Sales Divested Q3 2017 Sales Potash Industrial Phosphate IAS Set offs and other Q4 2018 Sales Businesses excluding Products Solutions divested businesses 1 133 60 1,410 1,361 1,301 Q4 2017 Sales Divested Businesses Q3 2017 Sales Pric
Slide 16: Q4 2018 Adjusted Operating Income Expansion
Aicl Q4 2018 Adjusted Operating Income Expansion Q4 2017 Adjusted Divested Businesses Q4 2017 adjusted Potash Industrial Products Phosphate Solutions IAS Set offs and other Q4 2018 Adjusted Operating Income operating income Operating Income excluding divested businesses(1) 7 ■ 34 38 133 15 214 168 1
Slide 17: Finance Expenses
Aicl Finance Expenses $ millions FY 2018 FY 2017 Q4 2018 Q4 2017 Liabilities 2,750 3,331 2,420 3,337 Interest rate 3.8% 3.5% 4.2% 3.5% Interest expenses, net of interest income 104 116 25 29 Interest capitalization and other (23) (24) (4) (8) Interest expenses, net 81 92 20 21 Total hedging transact
Slide 18: Effective Tax Rate
Aicl Effective Tax Rate $ millions FY2018 FY2017 Q4 18 Q4 17 Adjusted income before tax(1) 608 528 158 138 Normalized tax rate (including resource tax) 22% 25% 22% 25% Normalized tax expenses 136 134 35 35 Carryforward losses not recorded for tax purposes 17 19 6 11 Sub-Total 153 153 41 46 Sub-Total
Slide 19: Strengthening Financial Flexibility
Aicl Strengthening Financial Flexibility (1) Net debt calculated as short term credit + long term debt & debentures - cash & cash equivalents - short term investments & deposits 19
Slide 20: Q4 and FY2018 Key Takeaways
Aicl Q4 and FY2018 Key Takeaways NOTABLE ACCOMPLISHMENTS IN IMPROVING SUSINESS I EXECUTION OF OUR OPERATIONS, FINANCE & STRATEGY ENVIRONMENT VALUE-FOCUSED STRATEGY IMBEMHNTATONI 20
Slide 21: On the Verge of a Tipping Point
Aicl On the Verge of a Tipping Point.. POSITIVE BUSINESS IMPROVING MARKET SHARE OVERHANG MOMENTUM CONDITIONS REMOVED Q2 2018 continued strong performance, Higher commodity prices, Nutrien successfully sold its - 14% margin expansion and successful value- demnd growth and tight supply stake to a grou
Slide 22: Appendix
Aicl APPENDIX Aicl
Slide 23: FY2018 Industrial Products Sales and Segment Profit Analysis
Aicl FY2018 Industrial Products Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT $ millions $ millions %XSr %X %. X X % «5r % % % \ X % %, % XX X X % X X Excluding G&A and unallocated expenses Numbers may not add due to rounding and set offs 23
Slide 24: Q4 2018 Industrial Products Sales and Segment Profit Analysis
Q4 2018 Industrial Products Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT $ millions "% Excluding G&A and unallocated expenses Numbers may not add due to rounding and set offs 24
Slide 25: FY2018 Potash Sales and Segment Profit Analysis
Aicl FY2018 Potash Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT $ millions $ millions Excluding G&A and unallocated expenses Numbers may not add due to rounding and set offs 25
Slide 26: Q4 2018 Potash Sales and Segment Profit Analysis
Aicl Q4 2018 Potash Sales and Segment Profit Analysis SEGMENT PROFIT $ millions Excluding G&A and unallocated expenses Numbers may not add due to rounding and set offs 26
Slide 27: FY2018 Phosphate Solutions Sales and Segment Profit Analysis
FY2018 Phosphate Solutions Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT $ millions $ millions Excluding G&A and unallocated expenses Numbers may not add due to rounding and set offs 27
Slide 28: Q4 2018 Phosphate Solutions Sales and Segment Profit Analysis
Q4 2018 Phosphate Solutions Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT $ millions Excluding G&A and unallocated expenses Numbers may not add due to rounding and set offs 28
Slide 29: FY 2018 Innovative Ag Solutions Sales and Segment Profit Analysis
FY 2018 Innovative Ag Solutions Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT $ millions $ millions %X % Excluding G&A and unallocated expenses Numbers may not add due to rounding and set offs 29
Slide 30: Q4 2018 Innovative Ag Solutions Sales and Segment Profit Analysis
Q4 2018 Innovative Ag Solutions Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT $ millions $ millions Excluding G&A and unallocated expenses Numbers may not add due to rounding and set offs 30
Slide 31: Reconciliation Tables (1/2)
Aicl Reconciliation Tables (1/2) 1 Calculation of adjusted income before tax ($ millions) Q4 18 Q4 17 FY2018 FY2017 1 Adjusted operating income 214 168 753 652 Finance expenses (66) (25) (158) (124) Share in earnings (losses) of equity-accounted investees and adjustments to financial expenses 10 (5)
Slide 32: Reconciliation Tables (2/2)
Aicl Reconciliation Tables (2/2) Calculation of adjusted net income excluding divestments to net income ($ millions) Q4 18 Q4 17 FY2018 FY2017 Net income attributable to the shareholders of the Company 82 155 1,240 364 Total adjustments to operating income(1) 48 (21) )ר66( 23 Adjustments to financ
Slide 33: Non-GAAP Financial Measures
Aicl Non-GAAP Financial Measures We disclose in this Quarterly Report non-IFRS financial measures titled sales excluding divested businesses, adjusted operating income, adjusted operating income excluding divested businesses, adjusted net income attributable to the Company’s shareholders excluding d
Slide 34: Thank You
Aicl THANK YOU visit us at www.icl-group.com Aicl