Icl Group Ltd. · TASE:ICL
Icl — BMO 16th Annual Farm to Market Conference 2021
21 slides from Icl's conference presentation, May 19, 2021
Slide 1: ICL Investor Overview
ICL Investor Overview BMO 16th Annual Farm to Market Conference Raviv Zoller President and CEO May 19, 2021
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 Certain market and/or industry data used in this presentation were obtained from internal during this presentation does not con
Slide 3: ICL at a glance
+90 +11k Top Years of Employees Industry leader experience worldwide across mineral portfolio founded in 1929 and in ESG $5B ~$1B 3.4% Sales Adjusted EBITDA Average dividend in 2020 in 2020 yield since 2018 3
Slide 4: Significant advantages
Significant advantages Unique Assets Know-how Dead Sea has highest mineral Agronomy, chemistry concentration globally and customer experience accumulated over decades Exclusive producer of Polysulphate Leading R&D capabilities Strategic Locations Startup Nation Competitive logistic advantages Access
Slide 5: Creating impact and sustainable growth
Creating impact and sustainable growth Industrial Food Agriculture • Investments to meet long-term • Diversifying away from phosphate • Providing solutions to improve demand for specialty offerings commodities to specialty solutions yields for healthier, stronger crops • Maximizing R&D to develop •
Slide 6: Impact as market leaders
Impact as market leaders Sales 2020 EBITDA 2020(1) Global leader • No. 1 in bromine compounds Industrial production globally $1,255M $380M Products (IP) • No. 1 in phosphorous-based flame retardants globally Phosphate • Global leader with 24% specialty $1,948M $276M Solutions (PS) phosphates market
Slide 7: First quarter 2021
First quarter 2021 Key financial highlights US$M 1Q’21 1Q’20 YoY Change Sales $1,510 $1,319 14% Gross profit $495 $400 24% Gross margin 32.8% 30.3% 250 bps Operating income $185 $132 40% Operating margin 12.3% 10.0% 230 bps Net income, attributable $135 $60 125% EBITDA(1) $295 $250 18% EBITDA
Slide 8: First quarter 2021: Results by segment
First quarter 2021 Results by segment Sales EBITDA(1) US$M US$M $42 $1 $71 $43 $34 $1,510 $241 IAS $1,319 $545 PS Spec 54% $36 $10 Comm 46% IAS $2 $13 $29 -$16 $295 Potash $250 $94 PS $385 Spec 51% Comm 49% $66 Potash $398 IP $122 IP Other ($59) IP 1Q'20 1Q'21 Potash Other 1Q'20 IP PS 1Q'21 IAS Pota
Slide 9: Growth through innovation
Growth through innovation Industrial Innovation Food Tech Next Generation and Sustainability Solutions Fertilizers • Safer batteries • Plant-based, alternative • Organic • New energy storage protein products • Biostimulants and solutions • Texture and consistency micronutrients • High purity magnesi
Slide 10: Innovation
Innovation 20 global R&D centers Investing +$50M in R&D Translating megatrends 850 granted patents annually and targeting – food and agri tech – +40 external projects double-digit growth by 2025 into innovation initiatives Innovation ecosystem Internal BIG accelerator Launching ICL Planet targeting
Slide 11: Sustainable double-digit growth: 2025 targets
Sustainable double-digit growth 2025 targets Expected 2019 2025 Growth $1.2B $1.8B to $1.9B +54% EBITDA EBITDA $466M $850M to $950 +100% Free cash flow Free cash flow $730M $530M to $570M -25% CAPEX CAPEX 3.19(1) 2.74(2) -14% GHG emissions GHG emissions Note: EBITDA and free cash flow are a non-GAAP
Slide 12: Potential for 2025
Potential for 2025 Sales contribution Adjusted EBITDA(1) contribution by target market expansion by target market expansion Expect specialties growth of 85% $500 $300 $500 $650 $150 $100 $7,100 $150 to $250 $7,300 $1,800 $5,271 to $1,900 $1,198 2019 Agriculture Specialty Industrial M&A 2025 2019 Agr
Slide 13: Capital allocation
Capital allocation Develop Growth Engine Strong Balance Sheet Shareholder Returns • Flexibility to manage and • $1.1B of immediate availability • Robust dividend plan opportunistically grow • Fitch and S&P ratings • Industry leading average the business of BBB- with stable outlook dividend yield of
Slide 14: ESG
ESG Emissions Bloomberg ESG Index Bloomberg 2020 GEI Significant reduction(1) with Leading global fertilizer Included for 3rd continued progress company for straight year 3rd straight year ICL Iberia MAALA Carbon Disclosure Project FTSE4Good Certified 1st sustainable Highest Platinum+ ranking Rated
Slide 15: Why ICL
Why ICL 1 2 3 4 Industry leader More than 90 Agronomy, Strategic global across three years of history chemistry and locations paired integrated leveraging customer with extensive mineral value unique assets requirement distribution and chains know-how logistics network 5 6 7 Disciplined Innovation f
Slide 16: Guidance
Guidance As of 5.6.21 Raised FY’21 expectations • Expect adjusted EBITDA range of $1,090 million to $1,175 million(1) • Improved market conditions combined with prompt execution in 1Q’21 • Probability of achieving high-end of original guidance has risen considerably (1) See guidance and non-GAAP fin
Slide 17: Strategic Acquisitions
Strategic Acquisitions Expected to position ICL as Brazil’s leading specialty plant nutrition company Acquiring Compass Minerals América do Sul S.A. for ~US$400M Compass overview • Broad range of solutions cover all key crops in Brazil BRAZIL • Existing presence in 25 out of 26 Brazilian states • Se
Slide 18: Thank you
Thank you Contact Peggy.ReillyTharp@icl-group.com for more information on ICL View our interactive data tool at https://www.icl-group.com/investors/interactive-data-tool/
Slide 19: Reconciliation tables: slide one of two
Reconciliation tables Slide one of two Calculation of segment EBITDA Industrial Phosphate Innovative Potash and margin Products Solutions Ag Solutions US$M 1Q’21 FY’20 1Q’21 FY’20 1Q’21 FY’20 1Q’21 FY’20 Segment profit $105 $303 $29 $120 $40 $66 $22 $40 Depreciation and amortization $17 $77 $37 $166
Slide 20: Reconciliation tables: slide two of two
Reconciliation tables Slide two of two Calculation of adjusted EBITDA 1Q’21 4Q’20 3Q’20 2Q’20 1Q’20 FY’20 FY’19 US$M Net income attributable to $135 $65 $54 ($168) $60 $11 $475 shareholders of the company Financing expenses, net $20 $46 $29 $31 $52 $158 $129 Taxes on income $23 $24 $14 ($33) $20 $25
Slide 21: Guidance and non-GAAP financial measures
Guidance and non-GAAP financial measures Guidance The 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 necessar
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