Icl Group Ltd. · TASE:ICL
Icl — Investor Day (October 2022)
41 slides from Icl's investor day presentation, Oct 25, 2022
Slide 1: Growing Specialties Impact
Growing Specialties Impact Raviv Zoller ⅼ President & CEO October 25, 2022 ICL Investor Day 1
Slide 2: Important legal notes
Important legal notes Disclaimer and safe harbor for forward-looking statements This presentation and/or other oral or written statements made by ICL Group during its presentation, or from time to time, may contain forward-looking statements within the meaning of the United States Private Securities
Slide 3: Making an impact based on sustainability challenges
Making an impact based on sustainability challenges Energy Storage Next Generation Food Tech/ Digital Farming/ Novel Solutions Fertilization Alt-Proteins Ag tech Solutions Note: Specialties EBITDA is a non-GAAP financial measure; see appendix for further important 3 information about targeted non-GA
Slide 4: ICL at a glance
+100 +12k #1 Years of Employees Leading experience worldwide ESG rankings $9B ~$3.3B 4.6% Sales Adjusted EBIDTA Average dividend TTM TTM yield since 2018 Notes: TTM reflects trailing 12 months through 2Q’22. Adjusted EBITDA is a non-GAAP measure; see reconciliation tables in appendix. Dividend yield
Slide 5: Global R&D, production and sales sites
R&D sites R&D sites R&D sites R&D sites Sales & Distribution sites Sales & Distribution sites Sales & Distribution site Sales & Distribution sites Production sites Production sites Production sites R&D Production sites Centers Production sites in 13 countries Sales & Distribution sites in over 30 co
Slide 6: Global R&D, production and sales sites
R&D sites R&D sites R&D sites R&D sites Sales & Distribution sites Sales & Distribution sites Sales & Distribution site Sales & Distribution sites Production sites Production sites Production sites Production sites R&D Centers Production sites Sales & Distribution sites in 13 countries in over 30 co
Slide 7: Premium Assets, Unique Know-how, Strategic Locations
Premium Assets Unique Know-how Dead Sea mineral concentration Agronomy, chemistry Leading bromine derivatives and customer experience production site accumulated over decades Brands, licenses, certifications Leading IP & R&D capabilities Strategic Locations Startup Nation Competitive logistic advant
Slide 8: Focus on specialty / downstream businesses
in specialty / downstream businesses based on our unique global resources, customer relationships, and technological ingenuity, as we optimize the value of our commodities. 8
Slide 9: Industrial Products, Phosphate Specialties, Growing Solutions sales
Industrial Products Phosphate Specialties Growing Solutions 33% 20% 13% Sales 2019-2021 US$M Sales 2019-2021 US$M Sales 2019-2021 US$M 2,262 1,318 1,255 1,617 1,789 1,649 1,670 1,111 1,135 1,342 1,037 1,033 2019 2020 2021 TTM 2019 2020 2021 TTM 2019 2020 2021 TTM * Market arket share based on ICL in
Slide 10: 2019-2021 financial results – Adj. EBITDA
2019-2021 financial results – Adj. EBITDA Industrial Phosphate Growing Potash Products Solutions Solutions $500M $501M $197M $547M UP 23% UP 77% UP 302% UP 29% ICL Total ICL Specialties $1,687M UP 40% Notes: Adjusted EBITDA and segment EBITDA are non-GAAP financial measures; see reconciliation table
Slide 11: Specialties EBITDA and margin
Notes: Specialties EBITDA and EBITDA margin are non-GAAP financial measures; see reconciliation tables in appendix. TTM reflects trailing 12 months through 2Q’22. 11
Slide 12: Specialties sales and EBITDA
5,700 4,629 25% 3,466 3,423 Sales US$M 20% EBITDA margin % 17% 18% 1,411 906 EBITDA US$M 603 614 2019 2020 2021 TTM Notes: Specialties EBITDA and EBITDA margin are non-GAAP financial measures; see reconciliation tables in appendix. TTM reflects trailing 12 months through 2Q’22. 12
Slide 13: More balanced geographic footprint
More balanced geographic footprint South America Asia North America & RoW Europe 13% 28% 25% 36% 27% 20% 27% 24% Note: TTM reflects trailing 12 months through 2Q’22. 13
Slide 14: Culture, Reporting, Rankings, Business Impact
CULTURE REPORTING RANKINGS BUSINESS IMPACT 14
Slide 15: Sustainability reporting and rankings
EcoVadis Bloomberg 1st TCFD/SASB FTSE 4 Tfs 1st Early Gold Medal ESG Index FPR Disclosure Good Initiative for Biodegradable Adopter substantiable The world most Industry leading Industry Adopted framework Included multiple Coating of United Nations procurement trusted business member for 4th qualifi
Slide 16: Our Brand Mission
for humanity's sustainability challenges, by leveraging our unique resources and technological ingenuity. Our Brand Mission 16
Slide 17: Innovation: BIG internal accelerator and ICL Planet
. BIG . Operational Excellence Internal Accelerator . Industry 4.0 . . ICL Planet . . ICL Startups External Startup Hub . Agmatix, Growers . . . ICL Breakthrough . . Open Innovation . Innovation 1 2 3 4 5 Energy Storage Next Generation Food Digital Novel Solutions Fertilization Tech/Alt- Farming/Ag
Slide 18: Internal Accelerator Program
Business Innovation for Growth Internal Accelerator Program 2.75 Years Since Launch 4,315 Submitted Ideas 1,381 Live Projects 992 Completed Projects $222M Realized Annual Operating Income Contribution Note: Data as of 9.30.22. Contribution ramp-up from 2022 through 2029 reflects targets. (1) Risk-we
Slide 19: ICL all around us
ICL all around us GQ Bra: m Sustainable \ Food Solution © extended Shelf Life ANCL
Slide 20: Growing market share and foundations for growth
Growing market share and foundations for growth Specialties Sales US$M Industrial Products market leader 5,246 5,700 4,629 3,466 2019A 2025F 2021 TTM Phosphate Specialties market leader Specialties EBITDA US$M 1,411 1,153 906 603 Growing Solutions on-track to becoming a 2019 2025F 2021 TTM market le
Slide 21: Execution of M&A and turnarounds completed
Execution of M&A and turnarounds (YPH China, Boulby UK, Mag lsrael) completed Signing of long-term contracts exceeded expectations Innovation transformation and geographic alignment achieved in full swing Significant new ESS opportunities (LFP, electrolytes, other) Capacity additions (Potash, TBBA,
Slide 22: ICL will achieve leadership in all its specialty businesses
“ in specialty/downstream businesses based on our unique global resources, customer relationships, and technological ingenuity…” ICL will achieve leadership in all its specialty businesses, based on sustainable double-digit growth Notes: Specialties EBITDA is a non-GAAP financial measure; see append
Slide 23: Targeting EBITDA of $800M (34%)
Targeting EBITDA of $800M (34%) Notes: Segment EBITDA and EBITDA margin are non-GAAP 23 financial measures; see reconciliation tables in appendix. Targets for 2027.
Slide 24: Targeting EBITDA of $800M (34%)
Targeting EBITDA of $800M (34%) Solid Electrolyte Energy Liquid Electrolyte LFP FruitMag CareMag D TextiMag Storage Batteries Textile Li-ion Battery Catalytic Urban Minning Gold Extraction Novel Solutions Bio-Based Recycling Recycling Converter Materials Recycling Notes: Segment EBITDA and EBITDA ma
Slide 25: Targeting EBITDA of $800M (34%)
Targeting EBITDA of $800M (34%) • Unique and sustainable Innovative Solutions resources Electrolytes • Long-term agreements Battery storage Urban mining • Capacity expansions Recycling innovation Non-toxic food and pharma Low carbon footprint products Notes: Segment EBITDA and EBITDA margin are non-
Slide 26: Targeting EBITDA of $600M (20%)
Targeting EBITDA of $600M (20%) Notes: Segment EBITDA and EBITDA margin are non-GAAP 26 financial measures; see reconciliation tables in appendix. Targets for 2027.
Slide 27: Targeting EBITDA of $600M (20%)
Targeting EBITDA of $600M (20%) Vegan, vegetarian, Sodium Texture Stability Shelf-life Dairy Alternative Sports and and flexitarian reduction improvement extension Proteins isotonic drinks Food Flavors Anti-caking Potassium Energy Pharmaceutical Fermentation Seafood additives chloride storage soluti
Slide 28: Targeting EBITDA of $600M (20%)
Targeting EBITDA of $600M (20%) • Unique global Innovative Solutions capabilities LFP Batteries Shelf-stable • Expanding ESS Alternative proteins opportunities Sodium reduction • Long-term High-purity products partnerships Advanced coating/anti- corrosion Notes: Segment EBITDA and EBITDA margin are
Slide 29: Targeting EBITDA of $750M (18%)
argeting EBITDA of $750M (18%) Notes: Segment EBITDA and EBITDA margin are non-GAAP 29 financial measures; see reconciliation tables in appendix. Targets for 2027.
Slide 30: Targeting EBITDA of $750M (18%)
argeting EBITDA of $750M (18%) Notes: Segment EBITDA and EBITDA margin are non-GAAP 30 financial measures; see reconciliation tables in appendix. Targets for 2027.
Slide 31: Targeting EBITDA of $750M (18%)
argeting EBITDA of $750M (18%) • Geographic Expansion Innovative Solutions Nutrient use efficiency • Optimizing Biostimulants & beyond operations, capacity Micronutrients and vertical integration Organic • Increase in R&D Biodegradable investments Precision agriculture Notes: Segment EBITDA and EBIT
Slide 32: ICL Digital Suite of Solutions
ICL Digital Suite of Solutions BY 2027, GROWING DATA TO IMPACT 20% OF GLOBAL FARMS 500M 50M 3M +300M FIELD TRIALS ACRES PROFESSIONALS Farmers 32
Slide 33: ICL Commodities
ICL Commodities Potash, Phosphate • No major change in updated plan • Adjusted to 2H’2021 prices (~CRU average expected prices) • Potash production to increase to 5,300M tons (run rate of 4,900M tons at end of 2022) • Additional phosphate needed for accelerated specialties growth plan from future pa
Slide 34: Sustainable double-digit growth of Specialties
Sustainable double-digit growth of Specialties SPECIALTIES COMMODITIES Note: Shown in US$M. 34
Slide 35: Accelerating margin expansion
Accelerating margin expansion SPECIALTIES COMMODITIES 28% Margin ` 24% Margin Notes: Shown in US$M. EBITDA and EBITDA margin are non-GAAP financial measures; see reconciliation tables in appendix. Numbers may be rounded.. 35
Slide 36: Making an impact based on sustainability challenges
Making an impact based on sustainability challenges Energy Storage Next Generation Food Tech/ Digital Farming/ Novel Solutions Fertilization Alt-Proteins Ag tech Solutions Note: Specialties EBITDA is a non-GAAP financial measure; see appendix for further important 36 information about targeted non-G
Slide 37: ICL Management Engaged & Committed to Creating Shareholder Value
ICL Management Engaged & Committed to Creating Shareholder Value Raviv Zoller Aviram Lahav Lilach Geva Harel Phil Brown Elad Aharonson President & Chief Financial EVP, Global General President, Phosphate President, CEO Officer Counsel & ESG Specialties Solutions Growing Solutions Yaniv Kabalek Meir
Slide 38: On track to become a global leader in all 3 specialty businesses
1 We delivered what we promised in 2020, much sooner than expected, with strong momentum. 2 There are significant opportunities for ICL amid growing global sustainability challenges. 3 We have the right fundamentals, and we are well positioned to achieve growth and margin expansion plans. On track t
Slide 39: Thank you
AICL Thank you 806006
Slide 40: Reconciliation tables
Reconciliation tables Industrial Products US$M 2017 2018 2019 2020 2021 TTM Potash US$M 2019 2020 2021 TTM Segment sales $1,193 $1,296 $1,318 $1,255 $1,617 $1,789 Segment sales $1,421 $1,268 $1,776 $2,793 Segment operating income $247 $300 $338 $303 $435 $595 Segment operating income $289 $121 $399
Slide 41: Long-term targets and non-GAAP financial measures
Long-term targets and non-GAAP financial measures Long term targets The company only provides long term targets on a non-GAAP basis. The company does not provide a reconciliation of forward-looking targeted EBITDA (non-GAAP) and targeted Margin EBITDA (non-GAAP) to GAAP net income (loss), due to the