Slide 1: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results Raviv Zoller | President and CEO May 11, 2022
Slide 2: Important legal notes
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 Certain market and/or industry data used in this presentation were obtained from internal during this presentation does not con
Slide 3: First quarter overview
First quarter overview Expanding long-term specialties focus, while benefitting from market upside • Record sales – up more than $1 billion • Adjusted EBITDA crossed $1 billion – all-time record high (1) • Record quarterly results for all specialties businesses • Another quarter of profitable growth
Slide 4: Key first quarter financial metrics
Key first quarter financial metrics Substantial year-over-year improvement Sales Adjusted EBITDA(1) Operating Cash Flow US$B US$M US$M Up +$1B YoY Up 232% YoY Up $119M YoY $2.5 $2.0 $1.8 $1.6 $1,002 $1.5 $587 $438 $344 $325 $360 $242 $273 $302 $206 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 1Q'21 2Q'21 3Q'21 4Q'
Slide 5: First quarter 2022 key financial highlights
First quarter 2022 Key financial highlights US$M 1Q’22 1Q’21 YoY Change ex. per share Sales $2,525 $1,510 67% Gross profit $1,245 $495 152% Gross margin 49.3% 32.8% 1,653 bps Operating income $902 $185 388% Adjusted operating income(1) $880 $185 376% Adjusted operating margin(1) 34.9% 12.3% 2,260 bp
Slide 6: Industrial Products
Industrial Products Results driven by higher prices and long-term contracts Key highlights Sales $600 US$M +24% $494 $500 • Record quarterly sales and EBITDA $398 $400 • Market prices for bromine increased year-over-year $300 $200 • Over 70% of bromine compound sales under long-term contracts 1Q'21
Slide 7: Potash
Potash Strong pricing, amidst reduced supply Key highlights Sales $1,000 US$M $795 $800 +128% • Average realized price per ton increased to $601, up $344 vs. $257 in 1Q’21 and up $114 vs. $487 in 4Q’21 $600 $400 $349 • Successful annual maintenance shutdown at Dead Sea $200 1Q'21 1Q'22 • Production
Slide 8: Phosphate Solutions
Phosphate Solutions Record results for specialties and commodities Key highlights Sales $900 +59% $798 US$M • Record results, as specialty food and industrial sales $600 $502 $437 and EBITDA continued to increase Specialty $294 $300 Commodity • Continued focus on driving long-term specialties profit
Slide 9: Innovative Ag Solutions
Innovative Ag Solutions Ongoing momentum combined with continued strategy execution Key highlights Sales $800 US$M $566 • Record sales and EBITDA $600 +66% $400 $340 • Brazilian integration on-track, with results ahead of expectations $200 • Good start to turf and ornamental season, with solid distr
Slide 10: Making an impact
Making an impact Continued investments across focus areas Industrial Food Agriculture • Dedicated internal unit and • Innovative milk protein product for • Consolidating and research resources focused on superior taste and texture expanding biostimulant energy storage • Debuted BufferMAX to increase
Slide 11: First quarter summary
First quarter summary Keeping our eye on the ball Expanding long-term Targeting consistent Increasing capacity to specialties focus, growth in sales and enable growth in while benefitting EBITDA specialties from market upside Investing in R&D Investing in Maintaining focus on to innovate and sustain
Slide 12: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results Aviram Lahav CFO
Slide 13: First quarter 2022 key financial highlights
First quarter 2022 Key financial highlights US$M 1Q’22 1Q’21 YoY Change ex. per share Sales $2,525 $1,510 67% Gross profit $1,245 $495 152% Gross margin 49.3% 32.8% 1,653 bps Operating income $902 $185 388% Adjusted operating income(1) $880 $185 376% Adjusted operating margin(1) 34.9% 12.3% 2,260 bp
Slide 14: Macro overview
Macro overview New and ongoing marketplace disruptions • Global growth still strong • Inflation soaring worldwide • FX dynamics shifting across currencies • Ripple effect from conflict in Ukraine • Supply chain disruptions • Commodity prices surging 14
Slide 15: Pricing across mineral value chain
$0 $300 $600 $900 $40,000 $0 $20,000 1Q'12 US$/ton US$/day 1Q'12 3Q'12 3Q'12 1Q'13 1Q'13 3Q'13 3Q'13 1Q'14 GMOP FOB NOLA 1Q'14 3Q'14 3Q'14 1Q'15 1Q'15 3Q'15 3Q'15 1Q'16 1Q'16 3Q'16 Supramax Timecharter Average 3Q'16 Commodity price upcycle 1Q'17 1Q'17 3Q'17 3Q'17 1Q'18 1Q'18 3Q'18 3Q'18 1Q'19 1Q'19
Slide 16: Sales bridges
First quarter 2022 Sales bridges Sales Sales by segment US$M US$M $945 $226 $566 $296 ($49) ($43) $2,525 $2,525 IAS $446 Acquisitions 22% Organic 78% $113 $798 $96 PS Specialty 55% $1,510 Commodity 45% $1,510 Potash $795 IP $494 Other ($128) PS IAS 1Q'22 1Q'21 IP Other Potash and Brazil 1Q'21 Exchan
Slide 17: Profit bridges
First quarter 2022 Profit bridges Adjusted EBITDA(1) Adjusted EBITDA(1) by segment US$M US$M $945 $77 $1 ($153) ($23) ($25) IAS $153 ($46) ($22) $110 $1,002 Acquisitions 17% $388 $1,002 Organic 83% $247 PS Specialty 47% Commodity 53% $24 $450 Potash $81 $302 IP $302 $203 Other ($8) PS IAS 1Q'22 1Q'2
Slide 18: Financial strength
Financial strength Continued growth in cash flow Highlights for 1Q’22 • Net debt to adjusted EBITDA(1) improved to 1.0 • Operating cash flow of $325M vs. $206M in 1Q’21 • Free cash flow(1) of $218M vs. $59M in 1Q’21 • Dividend of 23.83 cents per share vs. 5.25 cents in 1Q’21 • Achieved sustainabilit
Slide 19: Guidance
Guidance Full year 2022 • Expect adjusted EBITDA range of $3,500 million to $3,750 million(1) • Of which, EBITDA of specialty businesses to represent between $1,300 million to $1,400 million for FY’22 (1) See guidance and non-GAAP financial measures in appendix. Note: Adjusted EBITDA is a non-GAAP m
Slide 20: Thank you
Thank you Co n ta c t Pe g g y. Re i l l y T h a r p @ i c l - g r o u p . co m f o r m o r e i n f o r m a t i o n o n I C L View our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 21: Appendix
Appendix First Quarter 2022 Financial Results
Slide 22: Segment changes
Segment changes Consolidated specialty agriculture businesses under Innovative Ag Solutions (IAS) Potash Phosphate Solutions Innovative Ag Solutions US$M US$M US$M 2020 2021 2020 2021 2020 2021 FY 1Q 2Q 3Q 4Q FY FY 1Q 2Q 3Q 4Q FY FY 1Q 2Q 3Q 4Q FY Segment sales 1,268 349 380 400 647 1,776 Segment sa
Slide 23: Industrial Products
Industrial Products First quarter 2022 Industrial Products US$M 1Q’22 1Q’21 US$M 1Q Sales Segment sales $494 $398 2021 $398 Sales to external customers $488 $394 Sales to internal customers $6 $4 Quantity ($45) Segment operating income $188 $105 Price $149 Depreciation and amortization $15 $17 Excha
Slide 24: Potash
Potash First quarter 2022 Potash US$M 1Q’22 1Q’21 US$M 1Q Sales Segment sales $795 $349 2021 $349 Sales to external customers $648 $254 Sales to internal customers $43 $22 Quantity $17 Other and eliminations(1) $104 $73 Price $441 Gross profit $523 $135 Exchange rates ($12) Segment operating income
Slide 25: Phosphate Solutions
Phosphate Solutions First quarter 2022 Phosphate Solutions US$M 1Q’22 1Q’21 US$M 1Q Sales Segment sales $798 $502 2021 $502 Sales to external customers $748 $467 Sales to internal customers $50 $35 Quantity $78 Segment operating income $200 $42 Price $229 Depreciation and amortization(1) $47 $52 Exc
Slide 26: Innovative Ag Solutions
Innovative Ag Solutions First quarter 2022 Innovative Ag Solutions US$M 1Q’22 1Q’21 US$M 1Q Sales Segment sales $566 $340 2021 $340 Sales to external customers $556 $337 New Brazilian Businesses’ $125 Sales to internal customers $10 $3 contribution Segment operating income $93 $20 Quantity ($32) Dep
Slide 27: Consolidated results analysis
Consolidated results analysis First quarter 2022 Operating US$M Sales Expenses EBITDA Income 1Q’21 $1,510 ($1,325) $185 Total adjustments 1Q’21(1) - - - Adjusted 1Q’21 figures $1,510 ($1,325) $185 $302 Notes: New Brazilian Businesses’ $125 ($109) $16 $19 Positive – includes acquisition of Compass Mi
Slide 28: Reconciliation tables
Reconciliation tables Finance expenses, calculation of adjusted income before tax and adjusted effective tax rate US$M 1Q’22 1Q’21 US$M 1Q’22 1Q’21 Adjusted operating income $880 $185 Average debt (1) $3,050 $2,825 Finance expenses, net ($34) ($20) Annual interest rate 3.8% 3.9% Share in earnings of
Slide 29: Reconciliation tables
Reconciliation tables Calculation of segment EBITDA and breakout of segment sales by region Industrial Phosphate Innovative Calculation of segment EBITDA Potash Products Solutions Ag Solutions and margin US$M 1Q’22 1Q’21 1Q’22 1Q’21 1Q’22 1Q’21 1Q’22 1Q’21 Segment sales $494 $398 $795 $349 $798 $502
Slide 30: Reconciliation tables
Reconciliation tables Calculation of adjusted EBITDA, net debt to adjusted EBITDA and free cash flow Calculation of adjusted EBITDA Calculation of free cash flow 1Q’22 1Q’21 1Q’22 1Q’21 US$M US$M Net income $657 $142 Cash flow from operations $325 $206 Financing expenses, net $34 $20 Additions to PP
Slide 31: Reconciliation tables
Reconciliation tables Calculation of adjusted net income, attributable and adjusted EPS Calculation of adjusted net income, attributable 1Q’22 1Q’21 US$M Net income, attributable $632 $135 Adjustments(1) ($22) - Total tax adjustments $3 - Adjusted net income, attributable $613 $135 Calculation of ad
Slide 32: Guidance and non-GAAP financial measures
Guidance and non-GAAP financial measures Guidance The 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 necessar