Icl Group Ltd. · TASE:ICL
Icl — Q4 2021 Earnings Presentation
37 slides from Icl's earnings presentation, Feb 9, 2022
Slide 1: Fourth Quarter 2021 Financial Results
Fourth Quarter 2021 Financial Results Raviv Zoller February 9, 2022 President and CEO
Slide 2: Important legal notes
Important legal notes 2 Disclaimer and safe harbor for forward-looking statements The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in ICL
Slide 3: Fourth quarter summary
3 Fourth quarter summary Record specialties results with higher commodity prices Significant growth in sales All-time fourth quarter record EBITDA Continued strategic focus on long-term specialty solutions Commodity upside momentum All four businesses delivered double-digit growth Accelerated cash f
Slide 4: Fourth quarter 2021 Key financial highlights
Fourth quarter 2021 4 Key financial highlights (1) Adjusted operating income and margin, adjusted net income, adjusted EBITDA and margin, adjusted EPS and free cash flow are non-GAAP financial measures; see reconciliation tables in appendix. US$Mex. per share 4Q’21 4Q’20 YoY Change Sales $2,038 $1,3
Slide 5: Key fourth quarter financial metrics
Key fourth quarter financial metrics 5 Outstanding year-over-year improvement (1) Adjusted EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix. Operating Cash Flow Adjusted EBITDA(1) US$M US$M Up 55% YoY Up 115% YoY Up $86M YoY Sales US$B
Slide 6: Industrial Products
Industrial Products 6 Record quarterly sales Sales US$M EBITDA(1) US$M Key highlights Strong demand across key products and regionsContinued benefit from long-term, strategic agreementsGrowth in clear brine fluids salesSignificant contribution from phosphorus-based flame retardants and specialty min
Slide 7: Potash
Potash 7 Continued strength in price and demand Key highlights Average realized price per ton increased to $487Up 114% YoY, driven by strong global crop demand and allocation optimization Dead Sea – P-9 pumping operations commenced in early 2022Granular production record – approximately 50% of total
Slide 8: Phosphate Solutions
Phosphate Solutions 8 Sales US$M EBITDA(1) US$M Key highlights Specialty food and industrial sales increased, with strong demand across all regions New alternative-protein plant launched in DecemberContinued strong YPH performance, with higher prices and improved efficiencyIncreasing demand from LFP
Slide 9: Innovative Ag Solutions
Innovative Ag Solutions 9 Positive momentum continued, with record organic growth (1) Segment EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix. Sales US$M EBITDA(1) US$M Key highlights Strong demand and higher volumes across most regions and product linesRobust growth gl
Slide 10: Innovation, Sustainability, Partnership, Impactful events
Innovation Sustainability Partnership 10 Impactful events Company continuing to target excellence in 2022 Internal innovation delivered ~$40M of ‘21 annual efficienciesInternal accelerator achieved additional +$100M annual profit run-rateICL ADS ranked as top-five most innovative in Brazil Launched
Slide 11: Key 2021 takeaways
Key 2021 takeaways 11 Consistent strength, with EBITDA improvement across all divisions Record specialties performance, with all-time record profitability, plus commodity upsideAgriculture – expanded reach into Brazil via acquisitions and provided additional profitability and seasonal balance betwee
Slide 12: Outlook for 2022
Outlook for 2022 12 Maintaining long-term specialties focus Firm commodity prices through first halfStrong visibility for specialtiesInvesting to support future growth, with higher growth CAPEX focused on long-term contracts and additional infrastructureGenerating new opportunities and efficiencies
Slide 13: Fourth Quarter 2021 Financial Results - CFO
Fourth Quarter 2021 Financial Results Aviram Lahav CFO
Slide 14: Fourth quarter 2021 Key financial highlights
Fourth quarter 2021 14 Key financial highlights (1) Adjusted operating income and margin, adjusted net income, adjusted EBITDA and margin, adjusted EPS and free cash flow are non-GAAP financial measures; see reconciliation tables in appendix. US$Mex. per share 4Q’21 4Q’20 YoY Change Sales $2,038 $1,
Slide 15: Pricing across mineral value chain
Pricing across mineral value chain 15 Commodity price upcycle Sources: GMOP and phosphoric acid - CRU Fertilizer Week, as of 12.31.21; Supramax - Simpson Spence Young (SSY), as of December 2021; Sulfur - CRU, as of 12.31.21. GMOP FOB NOLA US$/ton Phosphoric acid CFR contract India US$/ton Sulfur Bul
Slide 16: Fourth quarter 2021 Sales bridges
Fourth quarter 2021 16 Sales bridges Note: Numbers rounded to closest million; Other includes intercompany eliminations. Sales US$M Specialty 61%Commodity 39% Sales by segment US$M Acquisitions 41%Organic 59% $380 $609
Slide 17: Fourth quarter 2021 Profit bridges
Fourth quarter 2021 17 Profit bridges (1) Adjusted EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix.Note: Numbers rounded to closest million; Other includes intercompany eliminations. Adjusted EBITDA(1) US$M Adjusted EBITDA(1) by segment US$M Specialty 40%Commodity 60% A
Slide 18: Full year 2021 Sales bridges
Full year 2021 18 Sales bridges Note: Numbers rounded to closest million; Other includes intercompany eliminations. Sales US$M Specialty 55%Commodity 45% Sales by segment US$M Acquisitions 27%Organic 73% $1,617 $1,931 $2,432 $1,245
Slide 19: Full year 2021 Profit bridges
Full year 2021 19 Profit bridges (1) Adjusted EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix.Note: Numbers rounded to closest million; Other includes intercompany eliminations. Adjusted EBITDA(1) US$M Adjusted EBITDA(1) by segment US$M Specialty 40%Commodity 60% Acquis
Slide 20: Financial strength
Financial strength 20 Continued growth in cash flow Note: Free cash flow and adjusted EBITDA are non-GAAP financial measures; see reconciliation tables in appendix. Net debt to adjusted EBITDA improved to 1.4Operating cash flow of $344M vs. $258M in 4Q’20Free cash flow of $166 vs. $80M in 4Q’20Compl
Slide 21: Guidance Full year 2022
Guidance 21 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 $1,850 million to $2,050 million(1) Of which, EBITDA of specialty businesses to represent between $875 m
Slide 22: Thank you
Thank you Contact Peggy.ReillyTharp@icl-group.com for more information on ICLView our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 23: Appendix
Appendix Fourth Quarter 2021 Financial Results
Slide 24: Results of operations
Results of operations 24 Fourth quarter and full year 2021 Industrial ProductsUS$M 4Q'21 4Q'20 FY'21 FY'20 Segment sales $422 $336 $1,617 $1,255 Sales to external customers $418 $333 $1,601 $1,242 Sales to internal customers $4 $3 $16 $13 Segment operating profit $111 $80 $435 $303 Depreciation and
Slide 25: Industrial Products Fourth quarter and full year 2021
Industrial Products 25 Fourth quarter and full year 2021 US$M 4Q Sales FY Sales 2020 $336 $1,255 Quantity $18 $198 Price $71 $150 Exchange rates ($3) $14 2021 $422 $1,617 US$M 4Q Segment EBITDA FY Segment EBITDA 2020 $103 $380 Quantity $11 $94 Price $71 $150 Exchange rates ($6) ($12) Raw materials (
Slide 26: Potash Fourth quarter and full year 2021
Potash 26 Fourth quarter and full year 2021 Note: Segment EBITDA is a non-GAAP financial measure; see reconciliation tables.(1) Primarily includes salt produced in the UK and Spain, Polysulphate and Polysulphate-based products, magnesium-based products, and sales of electricity produced in Israel; (
Slide 27: External potash metrics
External potash metrics 27 Average market prices and imports Sources: CRU (Fertilizer week Historical Price: January 2022), FAI, Brazil and Chinese customs data. Average prices 4Q’21 4Q’20 YoY Change 3Q’21 QoQ Change Granular potash – BrazilCFR spot US$ per ton $787 $248 217% $674 17% Granular potas
Slide 28: Phosphate Solutions Fourth quarter and full year 2021
Phosphate Solutions 28 Fourth quarter and full year 2021 Phosphate Solutions US$M 4Q'21 4Q'20 FY'21 FY'20 Segment sales $609 $501 $2,432 $1,948 Specialty $373 $291 $1,341 $1,135 Commodity $236 $210 $1,091 $813 Segment operating profit $97 $21 $307 $66 Specialty $46 $24 $155 $117 Commodity $51 ($3) $
Slide 29: External phosphate metrics
External phosphate metrics 29 Commodities market Average prices ($/ton) 4Q’21 4Q’20 YoY Change 3Q’21 QoQ Change DAPCFR India spot $809 $369 119% $643 26% TSP GranularCFR Brazil spot $677 $262 158% $629 8% SSPCFR Brazil inland 18% to 20% P2O5 spot $395 $179 121% $334 18% SulfurBulk FOB Adnoc Monthly
Slide 30: Innovative Ag Solutions Fourth quarter and full year 2021
Innovative Ag Solutions 30 Fourth quarter and full year 2021 Note: Segment EBITDA is a non-GAAP financial measure; see reconciliation tables.(1) Not including capital expenditures for the Brazilian acquisitions in the first half of 2021. For further information, see Note 3 to the company’s interim f
Slide 31: Consolidated results analysis
Consolidated results analysis 31 Fourth quarter 2021 US$M Sales Expenses Operating Profit EBITDA Notes: 4Q’20 $1,317 ($1,178) $139 Total adjustments 4Q’20* - $4 $4 Adjusted 4Q’20 figures $1,317 ($1,174) $143 $268 New Brazilian Businesses’ contribution $157 ($135) $22 $28 Positive – includes acquisit
Slide 32: Sales by geographic location
Sales by geographic location 32 Fourth quarter 2021 SalesUS$M Industrial Products Potash Phosphate Solutions Innovative Ag Solutions 4Q’21 4Q’20 4Q’21 4Q’20 4Q’21 4Q’20 4Q’21 4Q’20 Europe $123 $120 $121 $106 $193 $155 $90 $67 Asia $170 $121 $199 $116 $148 $151 $39 $27 North America $95 $66 $81 $45 $
Slide 33: Finance expenses
Finance expenses 33 Fourth quarter and full year 2021 (1) Average liabilities during given quarter.Note: Numbers may not add, due to rounding and set-offs. US$M 4Q’21 4Q’20 FY’21 FY’20 Average debt(1) $2,968 $2,755 $2,914 $2,828 Annual interest rate 4.0% 3.9% 3.8% 3.8% Interest expenses $30 $27 $111
Slide 34: Adjusted effective tax rate
Adjusted effective tax rate 34 Fourth quarter and full year 2021 (1) See reconciliation table.Note: Numbers may not add, due to rounding and set-offs. US$M 4Q’21 4Q’20 FY’21 FY’20 Adjusted income before tax(1) $423 $98 $1,076 $356 Tax rate 17% 19% 21% 21% Tax expenses $73 $19 $224 $75 Carryforward l
Slide 35: Reconciliation tables Slide one of two
Reconciliation tables 35 Slide one of two (1) Also includes proceeds from sale of property, plants and equipment (PP&E).Note: Numbers may not add, due to rounding and set-offs. Calculation of segment EBITDA and marginUS$M Industrial Products Potash Phosphate Solutions Innovative Ag Solutions 4Q’21 4
Slide 36: Reconciliation tables Slide two of two
Reconciliation tables 36 Slide two of two (1) See detailed reconciliation table – adjustments to reported operating and net income (non-GAAP) – in corresponding quarters’ earnings release.(2) Quarterly net debt to adjusted EBITDA ratio was calculated by dividing net debt by past four quarters adjust
Slide 37: Guidance and non-GAAP financial measures
Guidance and non-GAAP financial measures 37 GuidanceThe company only provides guidance on a non-GAAP basis. We do 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 amounts necess