Icl Group Ltd. · TASE:ICL
Icl — Israel Chemicals — Merger or Acquisition (December 2014)
14 slides from Icl's merger presentation, Dec 16, 2014
Slide 1: Strategic Alliance with Yunnan Yuntianhua
GRAPHIC OMMITTED Strategic Alliance with Yunnan Yuntianhua December 2014
Slide 2: Safe Harbor
GRAPHIC OMMITTED Safe Harbor All statements in this presentation, other than those relating to historical facts (and particularly those about our anticipated revenues, reserves and production rates and margin improvements and cost savings due to the YTH transaction), are "forward -looking statements
Slide 3: Strategic alliance with Yunnan Yuntianhua -- a step change to double ICL's global phosphate business
GRAPHIC OMMITTED Strategic alliance with Yunnan Yuntianhua -- a step change to double ICL's global phosphate business ICL will invest up to $500 million for: [] A world-scale phosphate mine and a major global integrated phosphate operations in China, through a 50% stake of a newly formed JV [] 15% o
Slide 4: Transaction Overview
GRAPHIC OMMITTED Transaction Overview Acquired Assets 1 50% JV in a fully vertically integrated phosphate business including a world scale phosphate rock mine and downstream operations 2 A 15% stake in Yunnan Yuntianhua Co. Ltd., China's leading producer of phosphate rock and fertilizers Funding []
Slide 5: Financial Highlights
GRAPHIC OMMITTED Financial Highlights Revenues [] JV sales to increase from ~$550M to ~$700M [] Commodity / Specialty sales volumes ratio to develop from 90%/10% to 50%/50% Margin expansion [] Expand EBITDA margins from low teens to high teens within 5 years EV/EBITDA [] JV valuation reflects approx
Slide 6: Yunnan Yuntianhua at a Glance
GRAPHIC OMMITTED Yunnan Yuntianhua at a Glance Company Snapshot [] China's leading producer of phosphate rock and fertilizers with approximately $9 billion in annual revenues (1)* China's second largest chemicals manufacturer[] Operates across 5 segments - Phosphate Fertilizer, Phosphate Rock Mining
Slide 7: Extensive Distribution Network
GRAPHIC OMMITTED Extensive Distribution Network [] Comprehensive distribution network comprising both own direct-sale stores (>45 stores) and franchised stores / distributors (~10,000) [] #1 market share in China in DAP in the last 5 years [] Strong positions in the Indian market [] Established base
Slide 8: Strategic Rationale
GRAPHIC OMMITTED Strategic Rationale Implement Proven Business Model --Converting Commodity into Specialty Utilizing Expertise between Both Companies Expand ICL's Global Specialty Phosphates Business through Competitive Backward Integration Expanding End Market Reach to Fulfil Essential Needs in the
Slide 9: Financially Solid Transaction with Clear Benefits
GRAPHIC OMMITTED Financially Solid Transaction with Clear Benefits Secure Cost Competitive Resources [] ICL will gain access to a low-cost phosphate rock operation with reserves that are among the largest globally, as well as low-cost phosphoric acid[] 100 million tonnes of phosphate rock -- suffici
Slide 10: Phosphate Rock Site Costs -- China among the World's Lowest
GRAPHIC OMMITTED Phosphate Rock Site Costs -- China among the World's Lowest The deal will secure ICL's access to competitive cost phosphate rock for several decades Phosphate rock site costs 2013 Establishing New Low Cost Phosphate Rock Base Existing ICL Production Base GRAPHIC OMMITTED 3 Open Pit
Slide 11: China is one of the Key Drivers of Global Phosphate Market
GRAPHIC OMMITTED China is one of the Key Drivers of Global Phosphate Market [] Attractive fast-growing fertilizer market underpinned by growing population, limited arable land and dietary shifts [] Chinese's food market is undergoing major changes in light of growing consumption of processed foods [
Slide 12: Significant Capability Expansion for ICL
GRAPHIC OMMITTED Significant Capability Expansion for ICL Phosphate Rock GRAPHIC OMMITTED Fertilizers GRAPHIC OMMITTED Phosphoric Acid GRAPHIC OMMITTED Specialty Fertilizers GRAPHIC OMMITTED Purified Phosphoric Acid GRAPHIC OMMITTED Note: Approximate figures. 1. Reflects 100% of the phosphate rock m
Slide 13: A Clear Roadmap to Deliver Value -- Well Identified and Executable Synergies
GRAPHIC OMMITTED A Clear Roadmap to Deliver Value -- Well Identified and Executable Synergies Production Expansion [] Upgrading production facilities to improve processes and expand downstream operations by utilizing ICL's know-how, therewith offer higher margin products* upgrading and expanding pur
Slide 14: 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/ Avi Doitchman Name: Avi Doitchman Title: Executive Vice Preside
Israel Chemicals — Merger or Acquisition (December 2014) on 6ix