Slide 1: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results Raviv Zoller | President and CEO August 14, 2024
Slide 2: Important legal notes
Important legal notes Disclaimer and safe harbor for forward-looking statements This presentation contains statements that constitute “forward-looking statements,” many of which can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,
Slide 3: Second quarter of 2024: Delivered continuing improvement
Second quarter of 2024 Delivered continuing improvement • Sales of $1,752M – second quarter of consecutive improvement • Adjusted EBITDA of $377M – increased for third consecutive quarter, with margin of 22% (1) • Adjusted diluted EPS of $0.10 (1) • Quarterly dividend of ~$0.05 per share • Specialti
Slide 4: Key financial highlights
Key financial highlights Specialties-driven sales Adjusted EBITDA(1) Operating cash flow US$M US$M US$M $1,381 $1,346 $1,373 $377 $316 $441 $362 $433 $292 24% 21% 22% 2Q'23 1Q'24 2Q'24 2Q'23 1Q'24 2Q'24 2Q'23 1Q'24 2Q'24 Specialties-driven EBITDA (1) Adjusted diluted EPS(1) Free cash flow(1,2) US$M
Slide 5: Industrial Products
Industrial Products Sales Key developments US$M • Third quarter of sequential EBITDA growth $300 $335 $315 • Increased utilization and cost savings 2Q'23 1Q'24 2Q'24 • Growth of market share in flame retardants and elemental bromine EBITDA US$M • Lower sales of clear brine fluids, due to weather and
Slide 6: Potash
Potash Sales Key developments US$M $582 $423 $422 • Total sales volume of 1,153 kmt versus 1,261 kmt in 2Q’23 and 1,084 kmt in 1Q’24 • Improved potash production in Spain, driving 2Q'23 1Q'24 2Q'24 lower cost per ton YoY EBITDA • Full-year 2024 cost savings efforts on track US$M • Average potash CIF
Slide 7: Phosphate Solutions
Phosphate Solutions Sales Key developments US$M $565 $572 $559 • Strong quarter with YoY and QoQ growth in sales, with margin expansion • Delivered double-digit YoY growth in alternative dairy-based 2Q'23 1Q'24 2Q'24 beverages EBITDA • Expanded production capacity in China, to meet growing US$M dema
Slide 8: Growing Solutions
Growing Solutions Sales Key developments US$M $481 $479 $494 • Strong quarter with YoY and QoQ improvement in sales and EBITDA • Launched innovative new products to meet specific 2Q'23 1Q'24 2Q'24 growing regions’ needs EBITDA • Increased market share in key markets of Brazil, China US$M and India •
Slide 9: Quarterly highlights
Quarterly highlights Focused on sustainable growth • Delivered third quarter of sequential EBITDA improvement • Increasing specialties market share in key regions • Acquired Custom Ag Formulators in North America • Added food phosphate capacity in China • Leveraging expertise to become global leader
Slide 10: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results Aviram Lahav CFO
Slide 11: Key market metrics | macro indicators
Key market metrics | macro indicators Inflation – generally stable Interest rates – elevated but steadying Rate Percentage 20% 20% USA EU China Brazil Israel USA EU Brazil Israel UK India 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% 2Q'19 3Q'19 4Q'19 1Q'21 1Q'19 1Q'20 1Q'22 1Q'23 1Q'24 4Q'20 2Q'21 4Q'21 4Q'2
Slide 12: Key market metrics | fertilizers
Key market metrics | fertilizers Grain Price Index – stabilizing Farmer sentiment – moderating US¢/bushel Index $2,500 Corn Rice Wheat Soybeans Grain Price Index $2,000 180 $1,500 $1,000 130 $500 $0 80 4Q'19 2Q'19 3Q'19 1Q'20 1Q'21 1Q'22 1Q'23 1Q'24 1Q'19 4Q'20 4Q'21 4Q'22 4Q'23 2Q'20 3Q'20 2Q'21 3Q
Slide 13: Key market metrics | energy storage and EVs
Key market metrics | energy storage and EVs North American LFP CAM demand WPA demand ‘000s mt ‘000s mt P2O5 Auto ESS Other (1) 589 403 227 133 29 2022 2024 2026 2028 2030 2020 2021 2022 2023 2024 2025 2026 2027 2028 Technical MAP demand Global LFP phosphate demand ‘000s mt ‘000s mt P2O5 2024 2024 20
Slide 14: Second quarter 2024 sales bridge
Second quarter 2024 Sales bridge Sales by segment Sales US$M US$M $253 $15 $7 $13 $9 $1,868 $1,868 ($349) ($160) $1,752 ($20) $1,752 $494 GS $572 PS Potash $422 $315 IP Other 2Q'23 2Q'24 Solutions Industrial Potash Other Phosphate 2Q'23 2Q'24 Quantity Exchange Products Growing Solutions Price Rate (
Slide 15: Second quarter 2024 profit bridge
Second quarter 2024 Profit bridge Adjusted EBITDA(1) by segment Adjusted EBITDA(1) US$M US$M $87 $1 $17 $23 $63 $45 $1 $441 GS $441 $110 $7 ($95) ($10) $377 $377 $146 PS $17 $118 Potash ($349) $74 IP 2Q'23 2Q'24 Solutions Industrial Potash Other Phosphate Other ($6) Materials 2Q'23 2Q'24 Quantity Tr
Slide 16: Potash costs and prices
Potash costs and prices Leading positions MOP industry cost curve Potash ASP Cash costs US$/t, excluding royalties, FOB load port US$ $500 $800 $400 $600 $300 $400 $200 ICL DSW $100 $200 $0 $0 0 10 20 30 40 50 1Q'20 1Q'22 1Q'23 1Q'21 1Q'24 2Q'21 3Q'21 4Q'20 4Q'21 4Q'22 4Q'23 2Q'20 3Q'20 2Q'22 3Q'22
Slide 17: Bromine quality and costs
Bromine quality and costs Leading positions Bromine concentration Bromine industry cost curve g/L Relative production cost 10.0 to 12.0 Djibouti China & Japan 3.5 to 5.5 India 2.5 to 4.5 Arkansas, U.S. ICL Jordan 0.06 to 0.11 0.1 to 0.2 Sea Water Underground Salt Lake Underground Dead Sea (China, Ja
Slide 18: Diversified approach to growth
Diversified approach to growth Driving global specialties transformation 2Q’24 sales by region 2Q’24 sales by business US$ US$ SA $391M IP $315M Asia $408M 6% Potash $422M 17% NA $307M 22% PS $572M Europe $534M GS $494M 27% RoW $112M 30% 23% 23% 18% 32% Note: Sales by business exclude other activiti
Slide 19: Financial highlights
Financial highlights Second quarter 2024 Benefitting from Savings and efficiency Continued focus on increasing specialties efforts on target cash generation market share Quarterly dividend Available resources Net debt to adjusted distribution of $63M, of $1.7B EBITDA of 1.3 (1) for 4.6% yield Note:
Slide 20: Raising guidance
Raising guidance Full year 2024 Specialties-driven EBITDA(1) of $0.8B to $1.0B, up from $0.7B to $0.9B No change in potash sales volumes Expected tax rate of approximately ~28% (1) Specialties-driven EBITDA includes Industrial Products, Phosphate Solutions and Growing Solutions and is a non-GAAP mea
Slide 21: Thank you
Thank you Co n ta c t Pe g g y. Re i l l y T h a r p @ i c l - g r o u p . co m f o r m o r e i n f o r m a t i o n o n I C L View our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 22: Appendix
Appendix Second Quarter 2024
Slide 23: Calculation of segment EBITDA
Calculation of segment EBITDA Second quarter of 2024 Industrial Products US$M 2Q’24 1Q’24 2Q’23 Phosphate Solutions(2) US$M 2Q’24 1Q’24 2Q’23 Segment sales $315 $335 $300 Segment sales $572 $559 $565 Segment operating income $60 $59 $60 Segment operating income $93 $84 $73 Segment operating margin 1
Slide 24: Segment results analysis
Segment results analysis Second quarter of 2024 Segment Sales Industrial Phosphate Growing Segment EBITDA Industrial Phosphate Growing Potash(1) Potash(1) US$M Products Solutions(2) Solutions US$M Products Solutions(2) Solutions 2Q’23 $74 $213 $129 $22 2Q’23 $300 $582 $565 $481 Quantity $39 ($13) $2
Slide 25: Reconciliation tables
Reconciliation tables Calculation of adjustments for second quarter of 2024 Adjusted EBITDA Adjusted NI and diluted EPS 2Q’24 1Q’24 2Q’23 2Q’24 1Q’24 2Q’23 US$M US$M, ex. per share Net income $130 $126 $167 Net income, attributable $115 $109 $163 Financing expenses, net $33 $35 $49 (1) Adjustments $
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 amo