Icl Group Ltd. · TASE:ICL
Icl — Q1 2024 Earnings Presentation
26 slides from Icl's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results Raviv Zoller | President and CEO May 9, 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: First quarter results
First quarter results Solid sequential quarterly improvement • Sales of $1,735M and adjusted EBITDA of $362M – up sequentially (1) • Adjusted diluted EPS of $0.09, with quarterly dividend of ~$0.05 per share (1) • Limited impact of war-related disruptions and maintained good production levels • Main
Slide 4: Key financial highlights
Key financial highlights Sales Adjusted EBITDA(1) Operating cash flow US$M US$M US$M $2,116 $1,690 $1,735 $610 $357 $362 $382 $415 $279 29% 21% 21% 1Q'23 4Q'23 1Q'24 1Q'23 4Q'23 1Q'24 1Q'23 4Q'23 1Q'24 Specialties-driven results Adjusted diluted EPS(1) Free cash flow(1) US$M US$ US$M Sales EBITDA $1
Slide 5: Industrial Products
Industrial Products Sales Key developments US$M • Sequential quarterly improvement – sales up +10%, $361 $299 $335 EBITDA up ~30%, on higher volumes • Softness continued in electronics and construction 1Q'23 4Q'23 1Q'24 end-markets • Clear brine fluid demand remained stable EBITDA US$M • Specialty m
Slide 6: Potash
Potash Sales Key developments US$M $600 $474 $423 • Total sales volume of 1,084kmt versus 1,179kmt in 4Q’23 and 963kmt in 1Q’23 • Successful annual Dead Sea maintenance completed in 1Q'23 4Q'23 1Q'24 March • Strong production execution in Spain, on track for FY EBITDA production goals US$M • Average
Slide 7: Phosphate Solutions
Phosphate Solutions Sales Key developments US$M $675 $515 $559 • Sequential quarterly sales increased on higher volumes • Stable commodity pricing and lower raw material 1Q'23 4Q'23 1Q'24 costs supported results • Continued strong results at YPH China EBITDA US$M • Signed three new MOUs for NA batte
Slide 8: Growing Solutions
Growing Solutions Sales Key developments US$M $564 $478 $479 • Sequential quarterly EBITDA improvement • North America up YoY, while Asia improved sequentially • Slower start in Brazil vs. prior year, with soft start to 1Q'23 4Q'23 1Q'24 spring in Europe EBITDA • Successfully launched ~10 new global
Slide 9: Quarterly highlights
Quarterly highlights Continued focus on innovation and sustainability • Third plant nutrition innovation center accredited in Brazil • Acquisition of Brazilian biologicals company, Nitro 1000 • Battery materials customer innovation and qualification center (CIQC) on track • Introduced multiple new p
Slide 10: First Quarter 2024 Financial Results - CFO
First Quarter 2024 Financial Results Aviram Lahav CFO
Slide 11: Macro overview
Macro overview Inflation generally Interest rates elevated Geopolitical situation Global outlook to stable but steady increasingly tense improve in 2H’24 Grain prices Farmer sentiment Commodity fertilizer Freight rates remain trended lower moderated prices declined elevated 11
Slide 12: Global indicators
Global indicators Inflation Interest rates 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 1Q'20 4Q'20 1Q'21 4Q'21 1Q'22 4Q'22 1Q'23 4Q'23 1Q'24 2Q'20 3Q'20 2Q'21 3Q'21 2Q'22 3Q'22 2Q'23 3Q'23 1Q'19 4Q'19 2Q'19 3Q'19 1Q
Slide 13: Key market metrics | fertilizers
Key market metrics | fertilizers Grain Price Index Farmer sentiment US¢/bushel Index $2,500 Corn Rice Wheat Soybeans Grain Price Index $2,000 180 $1,500 $1,000 130 $500 $0 80 2Q'19 3Q'19 1Q'20 4Q'20 1Q'21 4Q'21 1Q'22 4Q'22 1Q'23 4Q'23 1Q'24 2Q'20 3Q'20 2Q'21 3Q'21 2Q'22 3Q'22 2Q'23 3Q'23 1Q'19 4Q'19
Slide 14: Key market metrics | energy storage and EVs
Key market metrics | energy storage and EVs North American LFP CAM demand WPA demand ‘000s mt ‘000s mt P2O5 Auto ESS Other (1) 589 403 227 133 29 2022 2024 2026 2029 2030 2020 2021 2022 2023 2024 2025 2026 2027 2028 Technical MAP demand Global LFP phosphate demand ‘000s mt ‘000s mt P2O5 2020 2021 20
Slide 15: First quarter 2024 sales bridge
First quarter 2024 Sales bridge Sales by segment Sales US$M US$M $2,116 ($26) $2,116 $126 $23 ($177) ($116) $6 ($85) $1,735 $479 GS ($513) $1,735 $559 PS $423 Potash $335 IP Other Potash Phosphate Solutions Other 1Q'23 Industrial 1Q'24 Exchange 1Q'23 Quantity 1Q'24 Products Growing Solutions Price (
Slide 16: First quarter 2024 profit bridge
First quarter 2024 Profit bridge Adjusted EBITDA(1) by segment Adjusted EBITDA(1) US$M US$M $68 $610 ($33) $610 $2 $63 $42 $19 $1 ($174) GS $90 ($40) ($3) $362 $131 $362 PS $24 $124 Potash ($513) $72 IP Other ($7) Potash Phosphate Solutions Other 1Q'23 Industrial 1Q'24 Exchange Energy Other 1Q'23 Qu
Slide 17: Potash costs and prices
Potash costs and prices Leading positions MOP industry cost curve Potash ASP Cash costs US$/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 4Q'20 1Q'21 2Q'20 3Q'20 4Q'21 1Q'22 4Q'22 1Q'23 4Q'23 1Q'24 2Q'21 3Q'21 2Q'22 3Q'22
Slide 18: 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 19: Financial overview
Financial overview Driving efficiencies and delivering shareholder returns Highlights Reduced SG&A sequentially by ~5% Savings and efficiency efforts continued Effective cash conversion Available resources of $1.7B Net debt to adjusted EBITDA(1) of 1.3 Quarterly dividend distribution of $59M, for 3.
Slide 20: Reiterating guidance
Reiterating guidance Full year 2024 Specialties-driven EBITDA(1) of $0.7B to $0.9B Potash sales volumes of 4.6M to 4.9M metric tons Expected tax rate of approximately 30% (1) Specialties-driven EBITDA includes Industrial Products, Phosphate Solutions and Growing Solutions and is a non-GAAP measure;
Slide 21: Thank you
Thank you Co n ta c t Pe g g y. Re i l l y T h a r p @ i c l - g r o u p. co m f o r m o r e i n f o r m a t i o n o n I C L View our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 22: Appendix
7X Appendix First Quarter 2024
Slide 23: Calculation of segment EBITDA
Calculation of segment EBITDA First quarter of 2024 Industrial Products US$M 1Q’24 4Q’23 1Q’23 Phosphate Solutions(2) US$M 1Q’24 4Q’23 1Q’23 Segment sales $335 $299 $361 Segment sales $559 $515 $675 Segment operating income $59 $39 $90 Segment operating income $84 $85 $119 Segment operating margin 1
Slide 24: Segment results analysis
Segment results analysis First quarter of 2024 Segment Sales Industrial Phosphate Growing Segment EBITDA Industrial Phosphate Growing Potash(1) Potash(1) US$M Products Solutions(2) Solutions US$M Products Solutions(2) Solutions 1Q’23 $105 $298 $171 $45 1Q’23 $361 $600 $675 $564 Quantity $24 $32 ($3)
Slide 25: Reconciliation tables
Reconciliation tables Calculation of adjustments for first quarter of 2024 Adjusted EBITDA Adjusted NI and diluted EPS US$M, ex. 1Q’24 4Q’23 1Q’23 1Q’24 4Q’23 1Q’23 US$M per share Net income $126 $84 $294 Net income, attributable $109 $67 $280 Financing expenses, net $35 $33 $44 Adjustments (1) $12
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