Icl Group Ltd. · TASE:ICL
Icl — Israel Chemicals — Q2 2017 Earnings Presentation
22 slides from Icl's earnings presentation, Aug 3, 2017
Slide 1: Q2 2017 Results
Asher Grinbaum | Acting CEO August 3 rd , 2017 Q 2 2017 Results
Slide 2: Important Legal Notes
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 Is
Slide 3: Q2 2017 Results Summary
Q 2 2017 Results Summary $ millions Q 2 17 Q 2 16 % change Q 1 17 % change Sales 1 , 322 1 , 377 ( 4.0 )% 1 , 295 2.1 % Operating income 144 149 ( 3.4 )% 116 24.1 % Adjusted operating income 153 163 ( 6.1 )% 116 31.9 % Net income 57 120 ( 52.5 )% 68 ( 16.2 )% Free Cash flow 86 85 1.2 % 104 ( 17.3
Slide 4: Main Quarter Highlights
Main Quarter Highlights Business Environment ICL Perspective • Late signing of Chinese & Indian contracts • Continued weakness in commodity fertilizer prices, mainly phosphates • Strengthening of the NIS vs. the US dollar • Increased seaborne freight rates • Ammonia shortage in Israel • Solid spec
Slide 5: Business Performance & Major Developments
Business Performance & Major Developments Essential Minerals Specialty Solutions ϱ * Including inter - business lines’ sales ** Excluding G&A, unallocated expenses and eliminations $ million Q2 2017 Q2 2016 % change Sales* 736 765 (3.8)% Division O/I** 81 113 (28.3)% $ million Q2 2017 Q2 2016 % chan
Slide 6: Phosphogypsum Water Spill at Rotem – Committed to Environmental Restoration
Phosphogypsum Water Spill at Rotem – Committed to Environmental Restoration
Slide 7: Financial Results
Financial Results Kobi Altman CFO
Slide 8: Main Financial Figures and Analysis
Main Financial Figures and Analysis Q 2 2017 Sales ($M) Q 2 2017 Adjusted o perating income ($M) Numbers may not add up due to rounding and set offs See Q 2 2017 financial reports for a reconciliation of Adjusted operating income to operating income Free cash flow = operating cash flow – purchases
Slide 9: Finance Expenses
Finance Expenses $ million Q 2 2017 Q2 2016 Q 1 2017 Financial debt 3 , 412 3 , 662 3 , 383 Interest rate % 3.4 % 3.0 % 3.2 Net interest expenses 28.1 23.2 27.7 Revaluation of long - term pension liabilities 10.3 ( 2.4 ) 7.9 Hedging transactions ( 5.0 ) 16.8 ( 24.3 ) Special items 14.9 2.0 3.6 20.
Slide 10: Effective Tax Rate Impacted by Exceptional Items
Effective Tax Rate Impacted by Exceptional Items $ million Q2 2017 Q2 2016 FY2016 Adjusted Profit before tax 96 116 506 Income and Natural resources tax 31 29 122 Effective tax rate % 32 % 25 % 24 Special items 4 --- 26 Post special items 35 29 148 Post special items Tax rate % 36 % 25 % 29 NIS s
Slide 11: Specialty Solutions Bridge Analysis
Specialty Solutions Bridge Analysis Sales ($M) Segment operating income ($M) Numbers may not add due to rounding and set offs Excluding G&A and unallocated expenses 667 640 20 5 2 136 135 6 2 1 6
Slide 12: Essential Minerals Bridge Analysis
Essential Minerals Bridge Analysis Sales ($M) Segment operating income ($M) Numbers may not add due to rounding and set offs Excluding G&A and unallocated expenses 765 736 15 10 4 113 81 15 14 6 1 2 2
Slide 13: Improving Working Capital Management and Cash Flow Generation
1 , 111 1 , 067 1 , 103 1 , 203 1 , 287 1 , 337 1 , 406 1 , 274 1 , 206 1 , 306 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 86 104 127 96 85 38 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Improving Working Capital Management and Cash Flow Generation $ Milli
Slide 14: Thank You
Thank You
Slide 15: Appendix
Appendix
Slide 16: Specialty Solutions Division
Specialty Solutions Division ϭϲ
Slide 17: Specialty Solutions' Business Line Sales
Specialty Solutions’ Business Line Sales Q 2 2017 Numbers may not add due to rounding and set offs Industrial Products Advanced Additives Food Specialties Q2 2016 Quantity Exchange rates Price Q2 2017 294 291 3 2 2 Q2 2016 Quantities Exchange rates Q2 2017 174 147 26 1 Q2 2016 Exchange Rates Pric
Slide 18: ICL Essential Minerals Division
ICL Essential Minerals Division ϭϴ
Slide 19: Essential Minerals' Business Line Sales
Essential Minerals’ Business Line Sales Q 2 2017 Numbers may not add due to rounding and set offs Specialty Fertilizers Potash & Magnesiu m Phosphates 299 314 3 2 20 319 264 11 6 38 Q2 2016 Exchange Rates Prices Quantity Q2 2017 189 190 2 4 7
Slide 20: Potash Business Stand-Alone Bridge Analysis
Potash Business Stand - Alone Bridge Analysis Q 2 2017 Sales ($M) Business unit operating income ($M) See Q 2 2017 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. Numbers may not add due to rounding and set offs Exclud
Slide 21: Focus on Specialty Solutions Promoting Stability Despite Fertilizer Cycle
106 136 171 121 115 135 93 113 89 103 66 81 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 Essential Minerals Specialty Solutions 216 584 667 701 601 613 640 723 765 748 800 734 736 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 Essential Minerals Specialty Solutions 46 % Segment Operating Income
Slide 22: Strict CapEx Management while still Investing in Future Growth
619 680 794 887 401 355 350 337 2017E 2016A 2015A 2014A 2013A Amount spent Depreciation and amortization Strict CapEx Management while still Investing in Future Growth CapEx* ($M) * CapEx – additions to property plant and equipment and intangible assets not including PPA adjustments (recalculated