Icl Group Ltd. · TASE:ICL
Icl — Israel Chemicals — Q2 2016 Earnings Presentation
26 slides from Icl's earnings presentation, Aug 10, 2016
Slide 1: Q2 2016 Results
Stefan Borgas | President & CEO August 10 , 2016 Q 2 2016 Results
Slide 2: Important Legal Notes: Disclaimer and Safe Harbor
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 2016 Results Summary
Q 2 2016 Results Summary $ millions Q 2 16 Q 1 16 % change Q 2 15 % change Sales 1 , 377 1 , 265 9 % 1 , 196 15 % Adjusted operating income 163 115 42 % 244 ( 33 )% Adjusted net income 132 85 55 % 171 ( 23 )% Adjusted EPS 0.10 0.07 43 % 0.13 ( 23 )% Operating cash flow 238 222 7 % 325 ( 27 )% Exte
Slide 4: Business Environment & Major Developments
Business Environment & Major Developments ▪ Competitive market environment continued to negatively impact potash and phosphate results ▪ Second half potash business is expected to experience higher volumes and lower average prices ▪ Second half 2016 phosphate results expected to improve , supported
Slide 5: Increasing Contribution of Specialty Solutions
Increasing Contribution of Specialty Solutions 36 % 64 % Essential Minerals Specialty Solutions 56 % 44 % Essential Minerals Specialty Solutions Q 2 2015 Q 2 2016 See Q 2 2016 reports for a reconciliation of Adjusted operating income to operating income. Excluding G&A and unallocated expenses Adju
Slide 6: Divisional Evolution of Sales and Adjusted Operating Income
Divisional Evolution of Sales and Adjusted Operating Income Sales Operating Income See Q 2 2016 press release for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. Excluding G&A and unallocated expenses 0 100 200 300 400 500 600 700 800 900 Q1
Slide 7: Specialty Solutions Business Units' Targeted Top and Bottom Line Growth
754 680 1 , 025 871 881 945 526 613 2014A 2015A 2020E Food specialties Advanced Additives Industrial Products Specialty Fertilizers 341 318 2014A 2015A 2020E Specialty Solutions Business Units’ Targeted Top and Bottom Line Growth 7 Sales ($M) Food Specialties 7 - 9% Advanced Additives 3 - 5% Industr
Slide 8: Financial Results
Financial Results Kobi Altman CFO
Slide 9: Resilience Despite Weak Commodity Markets
Resilience Despite Weak Commodity Markets Q 2 2016 Sales Q 2 2016 Adjusted o perating income Numbers may not add up due to rounding and set offs $ millions Q 2 16 Q 1 16 % change Q 2 15 % change Sales 1 , 377 1 , 265 9 % 1 , 196 15 % Adjusted operating income 163 115 42 % 244 ( 33 )% Net income 12
Slide 10: Essential Minerals Bridge Analysis
Essential Minerals Bridge Analysis Sales ($M) Adjusted Operating income ($M) See Q 2 2016 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 * Strike impact Q 2 2015 Exclud
Slide 11: Specialty Solutions Bridge Analysis
718 842 65 46 15 7 2 11 Specialty Solutions Bridge Analysis Sales ($M) Adjusted Operating income ($M) See Q 2 2016 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 * Stri
Slide 12: Thank You
Thank You
Slide 13: Appendix
Appendix
Slide 14: Essential Minerals Division
Essential Minerals Division
Slide 15: Potash & Magnesium Business Unit
15 ICL Dead Sea ~ 3 , 500 Employees Worldwide ICL UK Potash & Magnesium Business Unit ~ 70 % Potash & Magnesium 2015 Sales of total ICL sales* * Not including inter - segment sales ~ 30 % ICL Magnesium ICL Ethiopia** ** Project under evaluation ICL Iberia
Slide 16: Phosphates Business Unit – Source of Our Integrated Value Chain
16 ICL Rotem ICL Turkey ~ 3 , 500 Employees Worldwide ICL Germany ICL The Netherlands Phosphates Business Unit – the Source of Our Integrated Value Chain 85 % Phosphate 2015 Sales of total ICL sales* *Not including inter - segment sales YPH JV 15 % Cajati , Brazil
Slide 17: Specialty Solutions Division
Specialty Solutions Division
Slide 18: ICL Specialty Fertilizers Business Unit
18 ICL Haifa Fuentes Nutrisi Everris ICL Specialty Fertilizers Business Unit 45 % 33 % MEA* - 24 % *Of 2015 sales **including inter - segment sales YPH JV Manufacturing site Pending Office Specialty Fertilizers 2015 Sales of total ICL sales* ~$ 700 M ~ 1 , 000 Employees Worldwide 60 % 19 % 9 % 8 % 4
Slide 19: ICL Industrial Products Business Unit
19 ICL Industrial Products Business Unit ~ 1 , 600 worldwide Of ICL sales in 2015 ~ 20 % Bromine and Phosphorus based flame retardants Elemental Bromine, Mercury emission control, clear brine fluids , HBr Solutions for the water treatment and the gas fracking industries Flame Retardants Microbial So
Slide 20: Advanced Additives Business Unit – Vast Global Footprint and Backward Integration
Advanced Additives Business Unit – Vast Global Footprint and Backward Integration 20 Fire Safety P - Salts, Acids P 2 S 5 Spec Min / P&C Fire Safety Acids Industrial Specialties Specialty Minerals P 4 P 2 S 5 2015 Sales by Business line 2015 Sales of total ICL sales* 83 % 17 % *Not including inter -
Slide 21: ICL Food Specialties Business Unit – Providing Solutions to the Global Food Industry
Meat Dairy proteins/other Bakery Dairy Beverages Food Specialties ICL 21 ICL Food Specialties Businees Unit - Providing Solutions to the Global Food Industry 2015 sales breakdown ~ 900 Employees Worldwide 2015 Sales of total ICL sales*
Slide 22: Essential Minerals: Business Units Performance
Essential Minerals: Business Units Performance Potash Phosphates See Q 2 2016 press release for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. Excluding G&A and unallocated expenses 200 220 240 260 280 300 320 340 Q1 2015 Q2 2015 Q3 2015 Q
Slide 23: Specialty Solutions: Business Units' Sales Performance
Specialty Solutions: Business Units’ Sales Performance Industrial Products Specialty Fertilizers Including inter - business u nit sales 100 150 200 250 300 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 100 120 140 160 180 200 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 100 150 200 250 300 Q
Slide 24: Essential Minerals' Business Unit Sales
Essential Minerals’ Business Unit Sales Potash & Magnesium ($M) Phosphates ($M) Numbers may not add due to rounding and set offs 254 299 194 83 65 1 See Q 2 2016 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. 249 319
Slide 25: Potash Business Stand-Alone Bridge Analysis
Potash Business Stand - Alone Bridge Analysis Sales ($M) Adjusted Operating income ($M) See Q 2 2016 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 * Strike impact Q 2
Slide 26: Specialty Solutions' Business Unit Sales
Specialty Solutions’ Business Unit Sales ($M) Numbers may not add due to rounding and set offs See Q 2 2016 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. Industrial Products Advanced Additives Specialty Fertilizers F