Icl Group Ltd. · TASE:ICL
Icl — Q1 2021 Earnings Presentation
35 slides from Icl's earnings presentation, May 6, 2021
Slide 1: First Quarter 2021 Financial Results
First Quarter 2021 Financial Results Raviv Zoller May 6, 2021 President and CEO
Slide 2: Important legal notes
Important legal notes 2 Disclaimer and safe harbor for forward-looking statements The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in ICL
Slide 3: 1Q'21 Highlights
3 1Q’21 Highlights Innovative Ag Solutions Phosphate Solutions Potash Industrial Products Record quarter, driven by strong demand and high market prices and bolstered by long-term contracts Record production in first quarter at the Dead Sea, completion of Iberia ramp project Record food specialties
Slide 4: Creating impact and sustainable growth
Agriculture Industrial Food 4 Creating impact and sustainable growth Committed to growing in our target markets Acquisitions expected to position ICL as Brazil’s leading specialty plant nutrition company Investments in capacity expansions helping to meet long-term demand Strategic additions to leade
Slide 5: Key financial metrics
Key financial metrics 5 Strong year-over-year improvement (1) EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix. Operating Cash Flow EBITDA(1) Sales US$M US$M US$B Up 14% YoY Up 18% YoY Up $40M YoY
Slide 6: First quarter 2021 Key financial highlights
First quarter 2021 6 Key financial highlights (1) EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix. US$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 $132 40% Operating margin 12.3% 10.0%
Slide 7: Industrial Products
Industrial Products 7 End-market recovery continues Sales US$M EBITDA(1) US$M Key highlights Record sales and EBITDA, benefitting from continued strategic shift to long-term contracts Higher bromine prices in ChinaHigher input costs, including shipping, as well as raw material constraintsEnd market
Slide 8: Potash
Potash 8 Global demand supported higher potash prices Sales US$M EBITDA(1) US$M Key highlights Strong growth in sales and EBITDA Grain price increases, due to strong global demandAverage realized price per ton up only 3% YoY Signed agreement with IPL (India) in April for $280 per ton, a $50 increase
Slide 9: Phosphate Solutions
Phosphate Solutions 9 Sales US$M EBITDA(1) US$M Key highlights Record sales and EBITDAPhosphate fertilizer prices continued significant recovery across all marketsMajor raw material prices increased, mainly sulfurStrong results for phosphate food specialtiesHigher volume for food phosphates and acid
Slide 10: Innovative Ag Solutions
Innovative Ag Solutions 10 Strong demand and innovation driving record results (1) Segment EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix. Sales US$M EBITDA(1) US$M Key highlights Record sales and EBITDA Strong demand in Europe, the U.S. and AsiaHigher volumes and impr
Slide 11: Brazil Strategic Acquisitions
BRAZIL Strategic Acquisitions 11 Expected to position ICL as Brazil’s leading specialty plant nutrition company Acquiring Compass Minerals América do Sul S.A. for ~US$400MFertiláqua integrated into ICL results, beginning in January 2021Compass overviewBroad range of solutions cover all key crops in
Slide 12: Key takeaways
Key takeaways 12 Building on strategic fundamentals Sales for 1Q’21 crossed $1.5B for first time since 2014Each business segment driving toward strategic targets Bromine capacity expansion meeting demand from shift to more profitable long-term contractsLooking at additional investments and innovatio
Slide 13: First Quarter 2021 Financial Results
First Quarter 2021 Financial Results Kobi Altman CFO
Slide 14: Financial strength
Financial strength 14 Continued growth in cash flow (1) Free cash flow is a non-GAAP financial measure; see reconciliation tables in appendix.Note: Liquidity is comprised of available credit facilities and cash and short-term deposits. Liquidity of $1.1B availableFunded Fertiláqua acquisition in Jan
Slide 15: Pricing across mineral value chain
Pricing across mineral value chain 15 Commodity price upcycle Sources: CRU and Bloomberg, as of 3.31.21. GMOP FOB NOLA US$/ton Phosphoric acid CFR contract India US$/ton
Slide 16: Cost input pricing
Cost input pricing 16 Significant increases in raw materials and freight rates Sources: CRU, as of 4.22.21; Baltic Exchange, as of 4.26.21 Sulfur Bulk FOB Middle East Spot US$/ton Supramax Timecharter Average US$/day
Slide 17: Sales and profit bridges
First quarter 2021 17 Sales and profit bridges (1) EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix.Note: Numbers rounded to closest million; Other includes intercompany eliminations. Sales US$M EBITDA(1) US$M Spec 51%Comm 49% Raw materials $12MTransportation $15M Spec 5
Slide 18: Results by segment
First quarter 2021 18 Results by segment Sales US$M EBITDA(1) US$M (1) EBITDA is a non-GAAP financial measure; see reconciliation tables in appendix.Note: Numbers rounded to closest million.
Slide 19: Guidance Full year 2021
Guidance 19 Full year 2021 (1) See guidance and non-GAAP financial measures in appendix. Note: Adjusted EBITDA is a non-GAAP measure, see appendix for calculation. Expect adjusted EBITDA range of $1,090 million to $1,175 million(1) Improved market conditions combined with prompt execution in 1Q’21 P
Slide 20: Thank you
Thank you Contact Peggy.ReillyTharp@icl-group.com for more information on ICLView our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 21: Appendix
Appendix First Quarter 2021 Financial Results
Slide 22: Results of operations
Results of operations 22 First quarter 2021 Industrial ProductsUS$M 1Q’21 1Q’20 Segment sales $398 $364 Sales to external customers $394 $361 Sales to internal customers $4 $3 Segment profit $105 $103 Depreciation and amortization $17 $17 Capital expenditures $17 $21 Segment EBITDA $122 $120 Phospha
Slide 23: Industrial Products
Industrial Products 23 First quarter 2021 Industrial Products US$M 1Q’21 1Q’20 Segment sales $398 $364 Sales to external customers $394 $361 Sales to internal customers $4 $3 Segment profit $105 $103 Depreciation and amortization $17 $17 Capital expenditures $17 $21 Segment EBITDA $122 $120 US$M Sal
Slide 24: Potash
Potash 24 First quarter 2021 Note: Segment EBITDA is a non-GAAP financial measure; see reconciliation tables.(1) Primarily includes salt produced in the UK and Spain, Polysulphate and Polysulphate-based products, magnesium-based products, and sales of electricity produced in Israel; (2) Potash avera
Slide 25: External potash metrics
External potash metrics 25 Average market prices and imports Sources: CRU (Fertilizer week Historical Price: April 2021), FAI, Brazil and Chinese customs data. Average prices 1Q’21 1Q’20 YoY Change 4Q’20 QoQ Change Granular potash – BrazilCFR spot US$ per ton $283 $245 15.5% $248 14.1% Granular pota
Slide 26: Phosphate Solutions
Phosphate Solutions 26 First quarter 2021 Phosphate Solutions US$M 1Q’21 1Q’20 Segment sales $545 $502 Sales to external customers $525 $483 Sales to internal customers $20 $19 Segment profit $40 $9 Depreciation and amortization $54 $49 Capital expenditures $51 $61 Segment EBITDA $94 $58 Phosphate S
Slide 27: External phosphate metrics
External phosphate metrics 27 Commodities market Average prices 1Q’21 1Q’20 YoY Change 4Q’20 QoQ Change DAPCFR India spot $455 $302 51% $369 23% TSPCFR Brazil spot $408 $252 62% $262 56% SSPCPT Brazil inland 18% to 20% P2O5 spot $206 $185 11% $179 15% SulfurBulk FOB Adnoc Monthly contract $138 $44 2
Slide 28: Innovative Ag Solutions
Innovative Ag Solutions 28 First quarter 2021 Innovative Ag Solutions US$M 1Q’21 1Q’20 Segment sales $241 $199 Sales to external customers $238 $196 Sales to internal customers $3 $3 Segment profit $22 $14 Depreciation and amortization $7 $5 Capital expenditures $4 $3 Segment EBITDA $29 $19 US$M Sal
Slide 29: Consolidated results analysis
Consolidated results analysis 29 First quarter 2021 US$M Sales Expenses Operating Income Notes 1Q’20 $1,319 ($1,187) $132 Prices $61 - $61 Positive – $7 increase in average realized price per ton of potash YoYPositive – higher selling prices for phosphate commodities, FertilizerspluS products and el
Slide 30: Sales by geographic location
Sales by geographic location 30 First quarter 2021 SalesUS$M Industrial Products Potash Phosphate Solutions Innovative Ag Solutions Other Activities Reconciliations Consolidated 1Q’21 1Q’20 1Q’21 1Q’20 1Q’21 1Q’20 1Q’21 1Q’20 1Q’21 1Q’20 1Q’21 1Q’20 1Q’21 1Q’20 Europe $144 $127 $180 $148 $187 $188 $
Slide 31: Finance expenses
Finance expenses 31 First quarter 2021 (1) Average liabilities during given quarter.(2) Other for 1Q’20 includes $4 million, due to shekel revaluation vs. U.S. dollar.Note: Numbers may not add, due to rounding and set-offs. US$M 1Q’21 1Q’20 Average net debt(1) $2,770 $2,684 Weighted average interest
Slide 32: Effective tax rate
Effective tax rate 32 First quarter 2021 (1) See reconciliation table.Note: Numbers may not add, due to rounding and set-offs. US$M 1Q’21 1Q’20 Income before tax(1) $165 $81 Normalized tax rate 20% 21% Normalized tax expenses $34 $17 Carryforward losses not recorded for tax purposes and other $3 $6
Slide 33: Reconciliation tables, slide one of two
Reconciliation tables 33 Slide one of two (1) Also includes proceeds from sale of property, plants and equipment (PP&E).Note: Numbers may not add, due to rounding and set-offs.. Calculation of segment EBITDA and marginUS$M Industrial Products Potash Phosphate Solutions Innovative Ag Solutions 1Q’21
Slide 34: Reconciliation tables, slide two of two
Reconciliation tables 34 Slide two of two (1) See detailed reconciliation table – adjustments to reported operating and net income (non-GAAP) – in corresponding quarters’ earnings release.(2) Quarterly net debt to EBITDA ratio was calculated by dividing net debt by past four quarters adjusted EBITDA
Slide 35: Guidance and non-GAAP financial measures
Guidance and non-GAAP financial measures 35 GuidanceThe 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 necess