Slide 1: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results Raviv Zoller | President and CEO July 27, 2022
Slide 2: Important legal notes
Important legal notes 2 Disclaimer and safe harbor for forward-looking statements This presentation contains statements that constitute forward‑looking statements, many of which can be identified by the use of forward‑looking words such as anticipate, believe, could, expect, should, plan, intend, es
Slide 3: Second quarter overview
3 Second quarter overview Note: adjusted EBITDA and free cash flow are non-GAAP financial measures; see reconciliation tables in appendix. All time record sales and EBITDA Another consecutive quarter of profit and margin growth Record results for all specialties businesses Record results for all com
Slide 4: Key second quarter financial metrics
Key second quarter financial metrics 4 Substantial year-over-year improvement Operating Cash Flow Adjusted EBITDA(1) US$M US$M Up 78% YoY Up 249% YoY Up $385M YoY Sales US$B (1) Adjusted EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix.
Slide 5: Second quarter 2022 Key financial highlights
Second quarter 2022 5 Key financial highlights (1) Adjusted operating income and margin, adjusted net income, attributable, adjusted EBITDA and margin, adjusted EPS, and free cash flow are non-GAAP financial measures; see reconciliation tables in appendix. (2) 2Q’22 tax expenses were $540M, includin
Slide 6: Industrial Products
Industrial Products 6 Continued benefit from higher prices and long-term contracts Sales US$M US$M Key highlights All-time record quarterly EBITDA Prices higher year-over-year End-market demand mixed Clear brine fluids very strong Consumer electronics and automotive moderating, as expected Construct
Slide 7: Potash
Potash 7 Record quarter for prices and production (1) Segment EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix. Note: ICL has consolidated its specialty agriculture businesses under Innovative Ag Solutions (IAS). As a result, ICL Boulby and other European business compon
Slide 8: Phosphate Solutions
Phosphate Solutions 8 Another quarter of record results for specialties and commodities (1) Segment EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix. Note: ICL has consolidated its specialty agriculture businesses under Innovative Ag Solutions (IAS). As a result, ICL Bou
Slide 9: Innovative Ag Solutions
Innovative Ag Solutions 9 All-time quarterly record sales and EBITDA (1) Segment EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix. Note: ICL has consolidated its specialty agriculture businesses under Innovative Ag Solutions (IAS). As a result, ICL Boulby and other Europ
Slide 10: Sustainability, Innovation, Leadership
Sustainability Innovation Leadership 10 Making an impact Continued momentum Awarded highest MAALA rating in Israel Received IFA Green Leaf award in Spain Granted prestigious green mine certification at YPH in China Continued advancements in LFP battery production Joined with PlantArcBio to boost cro
Slide 11: Continued focus on future
Continued focus on future 11 ICL in leadership position, due to long-term specialties strategy Expanding long-term specialties focus, while benefitting from market upside Targeting consistent growth in sales and EBITDA Increasing capacity to enable growth in specialties Investing in R&Dto innovate a
Slide 12: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results Aviram Lahav CFO
Slide 13: Second quarter 2022 Key financial highlights
Second quarter 2022 13 Key financial highlights (1) Adjusted operating income and margin, adjusted net income, attributable, adjusted EBITDA and margin, adjusted EPS, and free cash flow are non-GAAP financial measures; see reconciliation tables in appendix. (2) 2Q’22 tax expenses were $540M, includi
Slide 14: Macro overview
14 Macro overview Strong global growth Inflation soared worldwide Commodity and grain prices remained high Impact from situation in Ukraine continued Limited relief from supply chain disruptions FX dynamics fluctuated across currencies Trends continued for most of second quarter
Slide 15: Pricing across mineral value chain
Pricing across mineral value chain 15 Commodity price progression Sources: GMOP and phosphoric acid - CRU Fertilizer Week, as of 6.30.22; Supramax - Simpson Spence Young (SSY), as of 7.19.22; Sulfur - CRU, as of 6.30.22. GMOP FOB NOLA US$/ton Phosphoric acid CFR contract India US$/ton Sulfur Bulk FO
Slide 16: Crop economics
Crop economics 16 Trends remained elevated through first half Commodity crop price progression US$/ton Fertilizer and grain price trends US$ Energy prices US$/mmbtu(1) Global grain stock-to-use Ratio US$ Jun-22 Jun-22 Jun-22 Sources: Prices and indices - The World Bank, as of July 2022; Grain stock-
Slide 17: Second quarter 2022 Sales bridges
Second quarter 2022 17 Sales bridges Note: Numbers rounded to closest million; Other includes intercompany eliminations. Sales US$M Specialty 54% Commodity 46% Sales by segment US$M Acquisitions 25% Organic 75% $700 $915 IAS/PS need to be manually updated
Slide 18: Second quarter 2022 Profit bridges
Second quarter 2022 18 Profit bridges (1) Adjusted EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix.Note: Numbers rounded to closest million; Other includes intercompany eliminations. Adjusted EBITDA(1) US$M Adjusted EBITDA(1) by segment US$M Specialty 42% Commodity 58%
Slide 19: Financial overview
Financial overview 19 Well-positioned for future growth (1) Adjusted EBITDA and free cash flow are non-GAAP financial measures; see reconciliation tables in appendix. Net debt to adjusted EBITDA(1) improved to 0.6 Operating cash flow of $627M vs. $242M in 2Q’21 Substantial free cash flow(1) of $410M
Slide 20: Guidance Full year 2022
Guidance 20 Full year 2022 (1) See guidance and non-GAAP financial measures in appendix. Note: Adjusted EBITDA is a non-GAAP measure, see appendix for calculation. Expect adjusted EBITDA range of $3,800 million to $4,000 million(1) Increase from previous guidance of $3,500 million to $3,750 million
Slide 21: Thank you
Thank you Contact Peggy.ReillyTharp@icl-group.com for more information on ICL View our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 22: Appendix
Appendix Second Quarter 2022 Financial Results
Slide 23: Industrial Products Second quarter and first half 2022
Industrial Products 23 Second quarter and first half 2022 US$M 2Q Sales 1H Sales 2021 $410 $808 Quantity ($47) ($94) Price $135 $285 Exchange rates ($12) ($19) 2022 $486 $980 US$M 2Q Segment EBITDA 1H Segment EBITDA 2021 $128 $250 Quantity ($14) ($28) Price $135 $285 Exchange rates ($5) ($11) Raw ma
Slide 24: Potash Second quarter and first half 2022
Potash 24 Second quarter and first half 2022 Note: Segment EBITDA is a non-GAAP financial measure; see reconciliation tables and non-GAAP financial measures. (1) Primarily includes salt produced in Spain, metal magnesium-based products and sales of excess electricity produced in Israel. (2) Potash a
Slide 25: Phosphate Solutions Second quarter and first half 2022
Phosphate Solutions 25 Second quarter and first half 2022 Phosphate Solutions US$M 2Q’22 2Q’21 1H’22 1H’21 Segment sales $915 $582 $1,713 $1,084 Specialty $493 $329 $930 $623 Commodity $422 $253 $783 $461 Segment operating income $268 $77 $468 $119 Specialty $117 $37 $219 $72 Commodity $151 $40 $249
Slide 26: Innovative Ag Solutions Second quarter and first half 2022
Innovative Ag Solutions 26 Second quarter and first half 2022 Note: Segment EBITDA is a non-GAAP financial measure; see reconciliation tables and non-GAAP financial measures. US$M 2Q Sales 1H Sales 2021 $334 $674 New Brazilian businesses’ contribution $177 $302 Quantity $10 ($22) Price $215 $360 Exc
Slide 27: Consolidated results analysis Second quarter 2022
Consolidated results analysis 27 Second quarter 2022 US$M Sales Expenses Operating Income EBITDA Notes: 2Q’21 $1,617 ($1,374) $243 Total adjustments 2Q’21(1) - ($7) ($7) Adjusted 2Q’21 figures $1,617 ($1,381) $236 $360 New Brazilian businesses’ contribution $177 ($139) $38 $41 Positive – includes ac
Slide 28: Consolidated results analysis First half 2022
Consolidated results analysis 28 First half 2022 US$M Sales Expenses Operating Income EBITDA Notes: 1H’21 $3,127 ($2,699) $428 Total adjustments 1H’21(1) - ($7) ($7) - Adjusted 1H’21 figures $3,127 ($2,706) $421 $662 New Brazilian businesses’ contribution $302 ($248) $54 $57 Positive – includes acqu
Slide 29: Reconciliation tables
Reconciliation tables 29 Note: Numbers may not add, due to rounding and set-offs. Adjusted EBITDA is a non-GAAP financial measure; see non-GAAP financial measures. (1) 2Q’22 tax expenses included $188M tax settlement with Israeli Tax Authority related to prior years. Excluding this amount results in
Slide 30: Reconciliation tables
Reconciliation tables 30 Calculation of adj. net income, attributable, adj. diluted EPS and net debt to adj. EBITDA Calculation of adjusted net income, attributable US$M 2Q’22 2Q’21 1H’22 1H’21 Net income, attributable $563 $140 $1,195 $275 Adjustments - ($7) ($22) ($7) Total tax adjustments(1) $188
Slide 31: Reconciliation tables
Reconciliation tables 31 Note: Numbers may not add, due to rounding and set-offs. Segment EBITDA is a non-GAAP financial measure; see non-GAAP financial measures. (1) For 2Q’22, specialty represented $14M and commodity represented $33M. For 2Q’21, specialty represented $13M and commodity represented
Slide 32: Segment changes
Segment changes 32 Consolidated specialty agriculture businesses under Innovative Ag Solutions (IAS) Note: Segment EBITDA is a non-GAAP financial measure; see non-GAAP financial measures. (1) Primarily includes salt produced in Spain, metal magnesium-based products and sales of excess electricity pr
Slide 33: Guidance and non-GAAP financial measures
Guidance and non-GAAP financial measures 33 Guidance The company only provides guidance on a non-GAAP basis. The company does 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 am