Icl Group Ltd. · TASE:ICL
Icl — ICL's Strategy Conference Call 2018
38 slides from Icl's conference presentation, Mar 8, 2018
Slide 1: ICL Strategy March 2018
.מטפחים את ההווה .מפתחים את העתיד CULTIVATING THE PRESENT. DEVELOPING THE FUTURE. ICL Strategy March 2018 1
Slide 2: ICL Strategy
.מטפחים את ההווה .מפתחים את העתיד CULTIVATING THE PRESENT. DEVELOPING THE FUTURE. ICL Strategy Hezi Israel, EVP BD & Strategy 1
Slide 3: Safe Harbor
Safe Harbor This Presentation (references to which and to any information contained herein shall be deemed to include information which has been or may be supplied in writing or orally in connection herewith or in connection with any further enquiries) is provided for the sole purpose of providing g
Slide 4: ICL Today
AICL Where needs take us ICL _ TODAY
Slide 5: ICL Today
ICL Today Phosphate ) Bromine Br 35
Slide 6: ICL Today: Agriculture and Industrial
ICL Today AGRICULTURE Specialty Fertilizers Semi- Specialty Phosphate Fertilizers Advanced Additives Potash Food Specialties Industrial Products INDUSTRIAL 5
Slide 7: Creating Value Along the Chain
Creating Value Along the Chain RESOURCES MINERAL ASSETS EXPERTISE SEGMENTS EXPERTISE Essential Specialty Minerals Solutions MARKETS AGRICULTURE INDUSTRIAL 6
Slide 8: Where do we want to go?
= S x Where needs take us aN < a , ae Where-do we want to go?
Slide 9: Our Strategic Guiding Principles
Our Strategic Guiding Principles $ 1. 2. 3. FOCUSED GROWTH FINANCIAL PORTFOLIO & OPPORTUNITIES STRENGTH SYNERGIES 8
Slide 10: Upstream Vs. Downstream
Upstream Vs. Downstream UPSTREAM DOWNSTREAM ▪ Highly Capital Intensive ▪ Successful track ▪ Volatile Market records in Phosphate & Bromine ▪ Show greater cycle resilience ▪ Higher ROI IDENTIFY GROWTH OPTIMIZATION OPPORTUNITIES 9
Slide 11: Growth Alternatives
Growth Alternatives Platform for Agro Solutions? AGRICULTURE Essential Minerals Potash & Magnesium AGRICULTURE Phosphates Specialty Specialty Fertilizers Fertilizers Semi- Phosphate Specialty INDUSTRIAL Fertilizers Specialty Solutions Industrial Products Advanced Platform for Food Advanced Additives
Slide 12: Where to Focus Our Downstream Growth?
Where to Focus Our Downstream Growth? Israel Agro-Tech ADVANCED CROP Healthy Nutrition Environmental Awareness NUTRITION Effective Agriculture Potash Phosphate Polysulphate NPK Water Potash+ Liquid CRF Soluble fertilizers PK+ 11
Slide 13: Our Strategic Focus
Our Strategic Focus Advanced Core Crop Minerals Nutrition 12
Slide 14: Core Minerals
Specialty Fertilizers Semi- Specialty Phosphate Fertilizers Advanced Additives Potash Food Specialties Industrial Products 13
Slide 15: Optimization of our Mineral Assets
Optimization of our Mineral Assets Operational Excellence In ICL UK – full shift to ICL Iberia – mine the Dead Sea and Rotem Polysulphate in progress consolidation & logistics upgrade ▪ Production process improvement ▪ ~ 50% reduction in workforce ▪ Building access ramp, expand ▪ Early retirement pl
Slide 16: YPH: Hub for Our Specialty Businesses in China
YPH: Hub for Our Specialty Businesses in China ▪ Significant reduction in operating loss in 2017 ▪ Operating break even expected in 2018 ▪ Accelerated shift towards specialty 15
Slide 17: Optimization
Optimization ~10-15% ~5M Tonne Shift Reduction in potash cost Maintain stable Phosphate and UK per tonne over 5 Years Potash production to Specialty 16
Slide 18: Core Minerals: Maintain Strength
Specialty Fertilizers Semi- Specialty Phosphate Fertilizers Advanced Additives Potash Food Specialties Industrial Products 17
Slide 19: Strong Market Position - A Robust base for Our Future
Strong Market Position - A Robust base for Our Future Highest Full phosphate chain Variety of single, concentration from Rock to Salts: multi blends and of Bromine in largest global agglomeration the World merchant marketer technology in of Purified food ingredients Phosphoric acid 18
Slide 20: Continuous Quest for Global Opportunities
Continuous Quest for Global Opportunities ▪ Value over volume in phosphate specialties as done in the bromine value chain ▪ Potential in China – dilution of bromine resources and environmental regulation; grow WPA and salts ▪ Drive innovation based on global trends ▪ Bolt on acquisitions 19
Slide 21: Maintain strength. Provide stability.
Maintain strength. Provide stability. Outgrow Expand the market margins 20
Slide 22: Our Strategic Focus
Our Strategic Focus Advanced Core Crop Minerals Nutrition 21
Slide 23: Semi-Specialty Fertilizers
Specialty Fertilizers Semi- Phosphate Specialty Fertilizers Advanced Additives Potash Food Specialties Industrial Products 22
Slide 24: Polysulphate as a Flagship of Our Semi-Specialty Business
Polysulphate as a Flagship of Our Semi-Specialty Business A PREMIUM NICHE FERTILIZER WITH UNIQUE BENEFITS Mineral Attributes ICL’s Advantages ▪ Sole producer ▪ Existing infrastructure 15% ▪ Market position Other 14% K 48% ▪ Multi-nutrients S 6% ▪ Extended Availability Mg 17% Ca ▪ Natural fertilizer
Slide 25: From One Mineral to A World of Value Added Products
From One Mineral to A World of Value Added Products Granulated MOP+Zinc Granulated MOP NP-APP Granulated MOP NP-APP SOP+ Poly NP-APP SOP+ Poly NPK+Poly SOP+ Poly NPK+Poly NPK+Poly NPK+Micro NPK+Poly NPK+Micro NPK+Micro NPS+Zinc NPK+Micro NPS+Zinc NPS+Zinc NPS NPS+Zinc NPS NPS Potash Plus NPS PK PluS
Slide 26: Growth in Semi-Specialty From ~$100M to ~$400M
Growth in Semi-Specialty From ~$100M to ~$400M Increase in Semi-Specialty sales within 5 years 25
Slide 27: Specialty Fertilizers
Specialty Fertilizers Semi- Phosphate Specialty Fertilizers Advanced Additives Potash Food Specialties Industrial Products 26
Slide 28: Our Strengths
Our Strengths ▪ Leader in Key Markets ▪ Access to P and K resources, unique access to Polysulphate ▪ Wide Portfolio with well established brands & unique products ▪ Profound agronomic knowledge & strong professional sales force ▪ Advanced P and K chemistry ▪ Advanced and flexible manufacturing techn
Slide 29: Fast Growing Industry Driven by Global Trends
Fast Growing Industry Driven by Global Trends Controlled Release Soluble Fertilizers Fertilizers Market Dynamics Potential market by 2026: Market Dynamics Potential market by 2026: (Mt) (Mt) 4.5 Mt 5.7 Mt 1.8 China 3.2 China share of share of 10% the the 0.4 growth: 1.8 growth: 6% ~70% ~40% 2006 201
Slide 30: Global Trends Driving Shift Towards Specialty Fertilizers
Global Trends Driving Shift Towards Specialty Fertilizers Regulatory Environmental Changing Population growth, Pressure Trends Food Chain urbanization & reduction in arable land per capita New Grower Practices 29
Slide 31: Building Leadership in Advanced Crop Nutrition Solutions
Building Leadership in Advanced Crop Nutrition Solutions Precision Business R&D Infrastructure Ag Development 30
Slide 32: Leverage PrecisionAg to Grow sales
Leverage PrecisionAg to Grow sales Digitization of Farms -Sensing, Software Analytics and Connectivity Solutions Platforms •ERP •Farm Management •Agronomy Prediction Equipment Models: •Autonomous •Pest Out •Task Assist or Big data insights •Water Stress •Yield Replacement Digital Ag: Reduce Inputs &
Slide 33: Digital Package to Enhance Sales
Digital Package to Enhance Sales Remote sensing Data analytics used of nutrient to offer tailored Mobile App deficiencies products Integration of In-soil Prescription tool: data to an temperature what fertilizer to Ag platform sensor apply when? 32
Slide 34: Growth through Leadership in Advanced Crop Nutrition solutions
Growth through Leadership in Advanced Crop Nutrition solutions Create Over $1BN Improve best-in-class Sales within 5 Years Operating Margin innovative platform 33
Slide 35: ICL in the Future
ICL in the Future Specialty Fertilizers Semi- Phosphate Specialty Fertilizers Advanced Additives Potash Food Specialties Industrial Products 34
Slide 36: Supportive Financial Position to Implement Our Strategy
Supportive Financial Position to Implement Our Strategy Net Debt/ 3.1 EBITDA* 2.9 Advanced Core $3,268M Crop Minerals $3,037M Nutrition 2.2 ~$2,100M Net debt reduction ▪ Support M&A and growth ▪ Infrastructure development and improvements – from on-going 2016 2017 2017 proforma post operating cash f
Slide 37: Key Strategic Targets
Key Strategic Targets Optimization Maintain Strength. Provide Stability. Growth in Growth through leadership in Semi-Specialty Advanced Crop Nutrition 36
Slide 38: Cultivating the Present. Developing the Future.
Cultivating the Present. Developing the Future. 37