Slide 1: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results Raviv Zoller | President and CEO May 10, 2023
Slide 2: Important legal notes
Important legal notes Disclaimer and safe harbor for forward-looking statements This presentation and/or other oral or written statements made by ICL Group during its presentation, or from time to time, may contain forward-looking statements within the meaning of the United States Private Securities
Slide 3: Solid first quarter results
Solid first quarter results Record first quarter free cash flow • Sales of $2.1B, down 17% YoY • Adjusted EBITDA of $610M, down YoY • Record 1Q operating cash flow of $382M, up 18% • Expanded financial flexibility with $1.55B sustainability linked credit facility • Specialty battery materials expans
Slide 4: Key financial metrics
Key financial metrics Sales Adjusted EBITDA(1) US$M US$M $2,525 $2,098 $1,510 $1,002 $610 $302 20% 40% 29% 1Q'21 1Q'22 1Q'23 1Q'21 1Q'22 1Q'23 (1) Adjusted EBITDA and margin are non-GAAP financial measures; please see appendix for additional details. 4
Slide 5: Driving long-term growth
Driving long-term growth Specialties sales Adjusted diluted EPS(1) Free cash flow(1) US$M US$ US$M $1,497 $1,349 $1,032 $0.48 $0.11 $0.23 $218 $220 $59 1Q'21 1Q'22 1Q'23 1Q'21 1Q'22 1Q'23 1Q'21 1Q'22 1Q'23 Note: Specialties is comprised of Industrial Products, Phosphate Specialties and Growing Solut
Slide 6: Industrial Products
Industrial Products Sales Key highlights US$M $494 • Global weakness in flame retardants $398 $361 • Strong demand for clear brine fluids continues • Record specialty mineral results 1Q'21 1Q'22 1Q'23 • Expect improving market conditions in second half EBITDA US$M $203 $122 $105 31% 41% 29% 1Q'21 1Q
Slide 7: Phosphate Solutions
Phosphate Solutions Sales Key highlights US$M $798 $714 • Food demand remained strong globally, $502 $437 while industrial end-markets were softer Specialties $425 $294 Commodities $361 • Specialties delivered record free cash flow $208 $289 1Q'21 1Q'22 1Q'23 • Continued supply chain challenges EBIT
Slide 8: Potash
Potash Sales Key highlights US$M $795 • Potash CIF price per ton of $541 vs. $642 in 1Q’22 $583 $349 • Production in-line with 1Q’22 • Annual maintenance shutdown completed in Dead Sea 1Q'21 1Q'22 1Q'23 • Indian contract signed in April, resulting in shift of EBITDA 100kmt to 2Q’23 US$M $450 $298 $6
Slide 9: Growing Solutions
Growing Solutions Sales Key highlights US$M • Slow start to spring in EU and NA, but overall sales $566 $564 momentum positive $340 • High priced raw materials across supply chain 1Q'21 1Q'22 1Q'23 • Destocking of high-priced inventory will continue into 2Q’23 EBITDA • Creating efficiencies, maximiz
Slide 10: Maximizing momentum for long-term growth
Maximizing momentum for long-term growth Industrial Products… Phosphate Solutions… Potash… Growing Solutions… expecting improved 2H building partnerships elevated crop prices new product launches 10
Slide 11: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results Aviram Lahav CFO
Slide 12: Macro overview
Macro overview • Inflation declining, but still a concern • Interest rates remain elevated on a global basis • China rebounding faster than anticipated • USD weakening against most currencies, except the NIS • Crop prices remain elevated • Improved farmer affordability • Raw material prices declinin
Slide 13: Global indicators
Global indicators Inflation Interest rates Rate Percentage 20% 20% USA EU China Brazil Israel USA Brazil UK Israel EU India 15% 10% 10% 5% 0% -5% 0% 2Q'19 3Q'19 1Q'20 4Q'20 1Q'21 4Q'21 1Q'22 4Q'22 1Q'23 2Q'20 3Q'20 2Q'21 3Q'21 2Q'22 3Q'22 1Q'19 4Q'19 2Q'19 3Q'19 1Q'20 4Q'20 1Q'21 4Q'21 1Q'22 4Q'22 1
Slide 14: Key market metrics – fertilizers
Key market metrics – fertilizers Commodity crop prices Farmer sentiment US$/ton Index $1,000 Corn Rice Wheat Soybeans 180 $500 130 $0 80 2Q'19 3Q'19 1Q'20 4Q'20 1Q'21 4Q'21 1Q'22 4Q'22 1Q'23 2Q'20 3Q'20 2Q'21 3Q'21 2Q'22 3Q'22 Apr'23 1Q'19 4Q'19 2Q'19 3Q'19 1Q'20 4Q'20 1Q'21 4Q'21 1Q'22 4Q'22 1Q'23
Slide 15: Key market metrics – electric vehicles
Key market metrics – electric vehicles EV sales forecasts M of units 100 70 64 90 88 85 87 87 86 85 85 84 83 82 82 60 77 78 80 51 52 Penetration rate (percent) 46 50 Cars sold (millions) 40 60 35 52 40 48 31 43 26 38 30 40 34 21 30 16 26 20 13 22 18 20 14 8 11 10 4 2 2 3 6 0 0 2020 2021 2022 2023 20
Slide 16: First quarter 2023 sales bridges
First quarter 2023 Sales bridges Sales by segment Sales US$M US$M $2,525 $4 $2,525 ($133) ($212) ($324) ($42) ($84) ($2) $2,098 $564 GS ($61) $2,098 PS $714 Specialty 60% Commodity 40% Potash $583 IP $361 Other ($124) 1Q'22 Growing 1Q'23 Indutrial Products Potash Phosphate Other Solutions Solutions
Slide 17: First quarter 2023 profit bridges
First quarter 2023 Profit bridges Adjusted EBITDA(1) by segment Adjusted EBITDA(1) US$M US$M $1,002 $1,002 ($98) ($197) ($42) $1 ($152) $45 ($16) ($77) GS ($76) ($15) ($65) $610 ($47) $610 $170 PSSpecialty 49% Commodity 51% $298 Potash IP $105 Other ($8) 1Q'22 Growing 1Q'23 Indutrial Products Potash
Slide 18: Financial overview
Financial overview Continued attention to delivering shareholder returns Highlights • Net debt to adjusted EBITDA(1) of 0.56 • Operating cash flow of $382M vs. $325M in 1Q’22 • Free cash flow(1) of $220M vs. $218M in 1Q’22 (1) Net debt to adjusted EBITDA and free cash flow are non-GAAP financial mea
Slide 19: Delivering shareholder value
Delivering shareholder value Capital allocation approach • Declared dividend of $0.11 per share vs. $0.24 in 1Q’22 • Dividend yield of 9.2% • Enhanced financial flexibility with new $1.55B sustainability linked credit facility • Maximizing benefit from significant increase in cash flow in 2022 • Tar
Slide 20: Guidance
Guidance Full year 2023 • Reiterating expectations for annual adjusted EBITDA range of $2.2 billion to $2.4 billion (1) • EBITDA of specialties businesses to represent approximately $1.1 billion of total adjusted EBITDA Adjusted EBITDA(1) Specialties EBITDA(1) US$B US$B $4.0 $2.2 to $2.4 ~15% CAGR $
Slide 21: Thank you
Thank you Co n ta c t Pe g g y. Re i l l y T h a r p @ i c l - g r o u p. co m f o r m o r e i n f o r m a t i o n o n I C L View our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 22: Appendix
7X Appendix First Quarter 2023
Slide 23: Calculation of segment EBITDA
Calculation of segment EBITDA First quarter 2023 Industrial Products US$M 1Q’23 1Q’22 1Q’21 Phosphate Solutions US$M 1Q’23 1Q’22 1Q’21 Segment sales $361 $494 $398 Segment sales $714 $798 $502 Segment operating income $90 $188 $105 Segment operating income $115 $200 $42 Segment operating margin 25%
Slide 24: Segment results analysis
Segment results analysis First quarter 2023 Segment Sales Industrial Phosphate Growing Segment EBITDA Industrial Phosphate Growing Potash Potash US$M Products Solutions Solutions US$M Products Solutions Solutions 1Q’22 $203 $450 $247 $110 1Q’22 $494 $795 $798 $566 Quantity ($89) ($66) ($31) ($14) Pr
Slide 25: Reconciliation tables
Reconciliation tables Calculation of adjustments Adjusted EBITDA Adjusted NI and diluted EPS 1Q’23 1Q’22 1Q’21 1Q’23 1Q’22 1Q’21 US$M US$M, ex. per share Net income $294 $657 $142 Net income, attributable $280 $632 $135 Financing expenses, net $44 $34 $20 Adjustments (1) $15 ($22) - Taxes on income
Slide 26: Guidance and non-GAAP financial measures
Guidance and non-GAAP financial measures 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 amou