Icl Group Ltd. · TASE:ICL
Icl — Jefferies 2018 Global Industrials Conference
20 slides from Icl's conference presentation, Aug 8, 2018
Slide 1: Investor Presentation
Investor Presentation August 2018
Slide 2: Important Legal Notes
Important Legal Notes This Presentation (references to which and to any information contained herein shall be deemed to include information which has been or may be supplied in writing or orally in connection herewith or in connection with any further enquiries) is provided for the sole purpose of p
Slide 3: Leading Global Fertilizer and Specialty Minerals Company
Leading Global Fertilizer and Specialty Minerals Company Financial Metrics Snapshot(2) $6.5bn 2.2x ($,mn) FY2017 YoY Q2 2018 YoY Market Cap LTM Net (01/08/2018) Leverage(5) Sales(3) 5,418 1% 1,371 4% BBB- Adj. Operating Income(4) 652 12% 188 23% STABLE 3.3% BBB- Div. Yield (6) Adj. Net Income(4) 389
Slide 4: Unique Business Model, Integrated Along the Mineral Value Chains
Unique Business Model, Integrated Along the Mineral Value Chains Our Specialty Our Business Resources Products End Markets Minerals Expertise Lines Dead Sea Potash Polysulphate Mining and Fertilizers Potash Fertilizer Bromine Extraction Agriculture Potash & Magnesium Liquid/Water Soluble Straights M
Slide 5: ICL's Business Model
ICL’s Business Model A LEADING PROVIDER OF VALUE ADDED SOLUTIONS AMONG TOP-3 MOST FOR THE INDUSTRIAL, COMPETITIVE IN EACH FOOD AND AGRICULTURE OF OUR TARGET END MARKETS MARKETS Phosphate value chain Potash value chain Innovative Ag Solutions CREATE LEADERSHIP IN Industrial ADVANCED CROP NUTRITION AN
Slide 6: Aligning Organizational Structure with Strategy
Aligning Organizational Structure with Strategy …… to Enhance Market Leadership and Promote Growth Industrial Products Potash Phosphate Solutions Innovative Ag Solutions Bromine value chain Potash value chain Advanced Additives Specialty Fertilizers Phosphorus Flame Magnesium Food Spec
Slide 7: Mineral Asset Base: Potash, Bromine, Phosphate and Polysulphate Sites
Mineral Asset Base: Potash, Bromine, Phosphate and Polysulphate Sites Potash & Bromine Potash & Polysulphate Phosphates ICL Dead Sea ICL Iberia, ICL UK ICL Rotem, YPH JV High quality and practically Facilitate favorable access to Backbone of our phosphate value inexhaustible source of potash, Europe
Slide 8: Optimization of our Mineral Assets
Optimization of our Mineral Assets Operational Excellence In ICL UK – full shift to ICL Iberia – mine consolidation the Dead Sea and Rotem Polysulphate in progress & logistics upgrade Production process ~ 50% reduction in Building access ramp, improvement workforce expand capacity in Suria E
Slide 9: ICL Potash Value Chain
ICL Potash Value Chain BECOME TOP-3 MOST COMPETITIVE IN EACH OF OUR TARGET MARKETS KEY FIGURES FY2017 YoY Q2 2018 YoY Sales(1) ($,mn) 1,383 3% 346 10% Business Line Profit(2) ($,mn) 282 % 76 25% Potash Production (K tonnes) 4,773 (10)% 1,346 9% Potash Sales Volumes (K tonnes) 5,039 (2)% 1,096 (3)% A
Slide 10: ICL Bromine Value Chain: Global Leadership
ICL Bromine Value Chain: Global Leadership SOLIDIFY LEADERSHIP IN THE GLOBAL BROMINE MARKET KEY FIGURES FY2017 YoY Q2 2018 YoY Sales(1) ($,mn) 1,193 7% 331 14% Business Line Profit(2) ($,mn) 303 6% 94 24% The Dead Sea provides the highest The Largest Capacity (KMT)(2) Bromine Prices in China(1) conc
Slide 11: Phosphate Value Chain
Phosphate Value Chain A LEADING BACKWARD INTEGRATED PROVIDER OF VALUE ADDED SOLUTIONS FOR THE INDUSTRIAL, FOOD AND AGRICULTURE END MARKETS KEY FINANCIAL RESULTS ($,mn) 1H 2018 YoY 2017 PHOSPHATE VALUE CHAIN SALES(1) Sales(1) 1,074 1% Phosphate Phosphate Business Line Profit(3) ($,mn) 107 45% Food Ac
Slide 12: ICL Specialty Fertilizers' Profile
ICL Specialty Fertilizers’ Profile CREATE LEADERSHIP IN ADVANCED CROP NUTRITION AND FARMER-CENTRIC SOLUTIONS KEY FINANCIAL RESULTS ($,mn) FY2017 YoY 1H 2018 YoY Sales(1) 692 5% 433 13% Business Line Profit(2) ($,mn) 56 2% 48 23% OPTIMAL PLANT NUTRITION: 2017 REVENUE BY LESS IS MORE! 5-YEAR TARGETS M
Slide 13: Financial Overview
Financial Overview
Slide 14: Q2 2018 Highlights
Q2 2018 Highlights Strong sales growth and margin expansion across all of ICL’s businesses: Bromine, Potash and Phosphate value chains, and Specialty Fertilizers Operating income increased by 19%. Excluding divested businesses, adjusted operating income increased by 47%(1) and adjusted net income mo
Slide 15: Q2 2018 Results Summary
Q2 2018 Results Summary $ millions Q2 18 Q2 17 % change Q1 18 % change Sales 1,371 1,322 4% 1,404 (2)% Operating income 172 144 19% 985 (83)% Adjusted operating income(1) 188 153 23% 151 25% Adjusted EBITDA(1) 296 251 18% 251 18% Net income 101 57 77% 928 (89)% Adjusted net income(1) 113 64 77% 106
Slide 16: Successful Optimization of Debt Structure
Successful Optimization of Debt Structure 16
Slide 17: Successful Optimization of Debt Structure
Successful Optimization of Debt Structure Maturities marked in green designated to be paid using proceeds form the Fire Safety and Oil Additives businesses divested during Q1 2018 and from the issuance of the 2038 bonds in Q2 2018 17
Slide 18: Successful Optimization of Debt Structure
Successful Optimization of Debt Structure Maturities marked in green relate to the issuance of the 2038 bonds 18
Slide 19: On the Verge of a Tipping Point…
On the Verge of a Tipping Point… POSITIVE BUSINESS IMPROVING MARKET SHARE OVERHANG MOMENTUM CONDITIONS REMOVED Q2 2018 continued strong Higher commodity prices, Nutrien successfully sold its performance, margin expansion demand growth and tight ~14% stake to a group of and successful value-oriented
Slide 20: Questions?
On the Verge of a Tipping Point… POSITIVE BUSINESS IMPROVING MARKET SHARE OVERHANG MOMENTUM CONDITIONS REMOVED Q2 2018 continued strong Higher commodity prices, Nutrien successfully sold its performance, margin expansion demand growth and tight ~14% stake to a group of and successful value-oriented
ICL Group — Jefferies 2018 Global Industrials Conference on 6ix