Slide 1: Q1 2019 Results
Slide 2: Important Legal Notes
Aicl 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 I
Slide 3: Q1 2019 Highlights
Aicl Q1 2019 Highlights ✓ First quarter financial results highlighted by strong performance in all three mineral value chains ✓ Operating income of $227 million or adjusted operating income of $241 million(*1), 65% higher than Q1 2018 adjusted operating income excluding divestments ✓ Profit margin e
Slide 4: Key Financial Metrics
Aicl Key Financial Metrics $ millions Q1 2019 Q1 2018 % change Q4 2018 % change Sales 1,415 1,404 1% 1,410 - Sales excluding divested businesses(1) 1,415 1,363 4% 1,410 - Operating income 227 985 (77)% 166 37% Adjusted operating income 241 146 65% 214 13% excluding divested businesses(2) Adjusted EB
Slide 5: Industrial Products Business Performance
Aicl Industrial Products Business Performance SALES(1) SEGMENT PROFIT (after G&A allocation(2)) $ millions +10% ✓ All-time record quarterly operating income ✓ Record operating margin of 28% ✓ Strong results driven by higher prices and sales volumes in most products (1) Including inter-segment sales
Slide 6: Potash Business Performance
Aicl Potash Business Performance SALES(1) SEGMENT PROFIT (after G&A allocation(2)) ✓ An increase in sales and operating income despite a decrease in potash sales volume due to disruptions in the operations of Israeli Railway Services and the termination of potash production in the UK ✓ Strong result
Slide 7: Phosphate Solutions Business Performance
Aicl Phosphate Solutions Business Performance SALES(1) SEGMENT PROFIT (after G&A allocation(2)) $ millions +1% 1------------------- ► ✓ Continued strong performance due to improvement throughout ICL’s phosphate value chain and despite weak commodity market conditions ✓ Operating margin improved to 7
Slide 8: Innovative Ag Solutions Business Performance
Aicl Innovative Ag Solutions Business Performance SALES(1) SEGMENT PROFIT (after G&A allocation(2)) $ millions ✓ Challenging quarter due to prolonged wet season in North America and in Israel and an $11 million negative impact of exchange rates ✓ Higher sales of coated and water soluble fertilizers
Slide 9: Continued Sequential Growth in Most Main Operational Parameters
Continued Sequential Growth in Most Main Operational Parameters $ millions Adjusted operating income Adjusted EBITDA Operating cash flow excluding divested businesses(1) excluding divested businesses(1) | Adjusted operating income Adjusted EBITDA | Operating cash flow % Adjusted operating income % A
Slide 10: Kobi Altman, CFO
Slide 11: Q1 2019 Sales Growth
Aicl Q1 2019 Sales Growth businesses Numbers may not add due to rounding and set offs. 11
Slide 12: Q1 2019 Adjusted Operating Income Expansion
Aicl Q1 2019 Adjusted Operating Income Expansion businesses Adjusted operating income is a non-GAAP financial measure. See Q1 2019 6-K and PR for a reconciliation of adjusted operating income to operating income. Numbers may not add due to rounding and set offs. (1) Excluding contributions from dive
Slide 13: Effective Tax Rate
Aicl Effective Tax Rate $ millions Q1 19 Q1 18 FY 2018 Adjusted income before tax(1) 206 137 608 Normalized tax rate 21% 21% 22% Normalized tax expenses 44 29 136 Carryforward losses not recorded for tax purposes 5 4 17 Exchange rate impact and other items 5 - (17) Adjusted tax expenses 54 33 136 Ad
Slide 14: IFRS 16 Impact
Aicl IFRS 16(1) Impact Item Net impact Comments Q1 2019 Actual . R Rent expenses decreased by $15 million . Operating income $2 million J $241 million Depreciation increased by $13 million EBITDA $15 million ! Rent expenses decreased by $15 million $350 million Property Plant & Equipment ~$300 milli
Slide 15: Strengthening Financial Flexibility
Aicl Strengthening Financial Flexibility (1) Net debt calculated as short term credit + long term debt & debentures - cash & cash equivalents - short term investments & deposits 15
Slide 16: Q1 Key Takeaways
Aicl Q1 Key Takeaways CONTINUOUS PROGRESS STRATEGY EXECUTION IS TOWARDS TOW/ LONG-TERM BEARING FRUITS VALUE CREATION 16
Slide 17: Thank you
M■1־ thankv°u /MCI
Slide 18: Appendix
Aicl APPENDIX Aicl
Slide 19: Q1 2019 Industrial Products Sales and Segment Profit Analysis
Aicl Q1 2019 Industrial Products Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT (after G&A allocation(*1)) $ millions $ millions Numbers may not add due to rounding and set offs 1) Commencing Q1 2019, segment profit is measured based on the operating income after allocation of genera
Slide 20: Q1 2019 Potash Sales and Segment Profit Analysis
Aicl Q1 2019 Potash Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT $ millions (after G&A allocation(1)) Numbers may not add due to rounding and set offs 1) Commencing Q1 2019, segment profit is measured based on the operating income after allocation of general & administrative withou
Slide 21: Q1 2019 Phosphate Solutions Sales and Segment Profit Analysis
Aicl Q1 2019 Phosphate Solutions Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT (after G&A allocation(1)) $ millions $ millions Numbers may not add due to rounding and set offs 1) Commencing Q1 2019, segment profit is measured based on the operating income after allocation of general
Slide 22: Q1 2019 Innovative Ag Solutions Sales and Segment Profit Analysis
Q1 2019 Innovative Ag Solutions Sales and Segment Profit Analysis SEGMENT SALES SEGMENT PROFIT (after G&A allocation(1)) $ millions $ millions %\ % % % *Sr X X% % Numbers may not add due to rounding and set offs 1) Commencing Q1 2019, segment profit is measured based on the operating income after al
Slide 23: Finance Expenses
Aicl Finance Expenses $ millions Q1 2019 Q1 2018 Liabilities 2,820 3,400 Interest rate 4.3% 3.4% Interest expenses, net of interest income 30 29 Interest capitalization and other (4) (6) Interest expenses, net 26 23 Total hedging transactions & balance sheet revaluation (11) (8) Exchange rates impac
Slide 24: Additional Data: Segment Profit Before and After G&A Expenses
Aicl Additional Data: Segment Profit Before and After G&A Expenses Starting from the first quarter of 2019, ICL’s management will measure, and accordingly present in its reports, the results of its business divisions (operating segments) after allocation of general and administrative (G&A) expenses
Slide 25: Reconciliation Tables (1/2)
Aicl Reconciliation Tables (1/2) Calculation of adjusted income before tax ($ millions) Q1 19 Q1 18 FY2018 Adjusted operating income 241 151 753 Finance expenses (35) (15) (158) Share in earnings (losses) of equity-accounted investees and adjustments to financial expenses - 1 13 Adjusted income befo
Slide 26: Reconciliation Tables (2/2)
Aicl Reconciliation Tables (2/2) Calculation of adjusted net income excluding divestments to net income ($ millions) Q1 19 Q4 18 Q3 18 Q2 18 Q1 18 Net income attributable to the shareholders of the Company 139 82 129 101 928 Total adjustments to operating income(1) 14 48 4 16 (834) Adjustments to fi
Slide 27: Non-GAAP Financial Measures
Aicl Non-GAAP Financial Measures We disclose in this Quarterly Report non-IFRS financial measures titled sales excluding divested businesses, adjusted operating income, adjusted operating income excluding divested businesses, adjusted net income attributable to the Company’s shareholders excluding d
Slide 28: Thank You
Aicl THANK YOU visit us at www.icl-group.com Aicl