Icl Group Ltd. · TASE:ICL
Icl — Q3 2024 Earnings Presentation
26 slides from Icl's earnings presentation, Nov 11, 2024
Slide 1: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results Raviv Zoller | President and CEO November 11, 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: Third quarter of 2024
Third quarter of 2024 Positive trend continues, with fourth consecutive quarter of EBITDA growth • Sales of $1,753M – third quarter of consecutive growth • Adjusted EBITDA of $383M up 11% YoY, with margin of 22% (1) • Free cash flow up 6% YoY, reaching $572M YTD (1) • Adjusted diluted EPS of $0.11 (
Slide 4: Key financial highlights
Key financial highlights Specialties-driven sales Adjusted EBITDA(1) Operating cash flow US$M US$M US$M $1,424 $1,412 $1,381 $383 $408 $346 $377 $426 $316 19% 22% 22% 3Q'23 2Q'24 3Q'24 3Q'23 2Q'24 3Q'24 3Q'23 2Q'24 3Q'24 Specialties-driven EBITDA (1) Adjusted diluted EPS(1) Free cash flow(1,2) US$M
Slide 5: Industrial Products
Industrial Products Sales Key developments US$M $309 • Continued market share gains in flame retardants $267 • Margin expansion on scale and efficiencies 3Q'23 3Q'24 • Clear brine fluid sales lower, due to shifts in oil and gas drilling cycles EBITDA US$M • Robust new product pipeline and continued
Slide 6: Potash
Potash Sales Key developments US$M $526 $389 • Average potash CIF price per ton of $297, down vs. $342 in 3Q’23 • Total sales volume of 1,060 kmt versus 1,280 kmt in 3Q’23 3Q'23 3Q'24 • Continued operational and efficiency efforts in Spain EBITDA drove higher production levels and lower cost per ton
Slide 7: Phosphate Solutions
Phosphate Solutions Sales Key developments US$M $595 $577 • Growth in specialties market share more than offset lower prices • Expanding portfolio and developing new food, industrial and 3Q'23 3Q'24 pharma products EBITDA • Continued growth at YPH in China US$M $140 • Targeting battery material oppo
Slide 8: Growing Solutions
Growing Solutions Sales Key developments US$M $550 $538 • Continued expansion of product innovation strategy, with targeted regional solutions • Third sequential quarter of sales and EBITDA growth 3Q'23 3Q'24 • Efficiency efforts and product mix drove significant margin EBITDA expansion US$M • Signe
Slide 9: Quarterly highlights
Quarterly highlights Collaborating on solid execution of specialties strategy • Delivered fourth quarter of sequential EBITDA improvement • Enhancing robust and innovative product pipeline • Driving cost and efficiency efforts • Leveraging cross-company expertise to target new and adjacent markets •
Slide 10: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results Aviram Lahav CFO
Slide 11: Key quarterly market metrics | macro indicators
Key quarterly market metrics | macro indicators Inflation – mixed by region Interest rates – mixed by region 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 4Q'21 4Q'22 4Q
Slide 12: Key quarterly market metrics | fertilizers
Key quarterly market metrics | fertilizers Grain Price Index – under pressure Farmer sentiment – softened but rebounding US¢/bushel Index $2,500 Corn Rice Wheat Soybeans Grain Price Index 200 $2,000 150 $1,500 100 $1,000 $500 50 $0 0 4Q'19 2Q'19 3Q'19 1Q'20 1Q'21 1Q'22 1Q'23 1Q'24 1Q'19 4Q'20 4Q'21
Slide 13: Key market metrics | energy storage and EVs
Key market metrics | energy storage and EVs North American LFP CAM demand WPA demand ‘000s mt ‘000s mt P2O5 Auto ESS Other (1) 589 403 227 133 29 2022 2024 2026 2028 2030 2020 2021 2022 2023 2024 2025 2026 2027 2028 Technical MAP demand Global LFP phosphate demand ‘000s mt ‘000s mt P2O5 2024 2024 20
Slide 14: Third quarter 2024 sales bridge
Third quarter 2024 Sales bridge Sales by segment Sales US$M US$M $42 $7 $16 $1,862 ($137) ($18) ($12) $1,862 ($96) ($20) $1,753 GS $1,753 $538 PS $577 Potash $389 $309 IP Other 3Q'23 3Q'24 Solutions Industrial Potash Other Phosphate 3Q'23 3Q'24 Quantity Exchange Products Growing Solutions Price Rate
Slide 15: Third quarter 2024 profit bridge
Third quarter 2024 Profit bridge Adjusted EBITDA(1) by segment Adjusted EBITDA(1) US$M US$M $23 $27 $9 $6 $3 $47 $22 $83 $64 GS $7 $346 $383 $383 ($44) $140 PS $346 ($13) Potash ($96) $120 $65 IP 3Q'23 3Q'24 Solutions Industrial Potash Other Phosphate Other ($6) Materials 3Q'23 3Q'24 Quantity Transp
Slide 16: Potash costs and prices
Potash costs and prices Leading positions MOP industry cost curve Potash ASP Cash costs US$/t, excluding royalties, FOB load port US$ $500 $800 $400 $600 $300 $400 $200 ICL DSW $200 $100 $0 $0 1Q'20 1Q'21 1Q'22 1Q'23 1Q'24 4Q'20 2Q'21 3Q'21 4Q'21 4Q'22 4Q'23 2Q'24 2Q'20 3Q'20 2Q'22 3Q'22 2Q'23 3Q'23
Slide 17: Bromine quality and costs
Bromine quality and costs Leading positions Bromine concentration Bromine industry cost curve g/L Relative production cost 10.0 to 12.0 Djibouti China & Japan 3.5 to 5.5 India 2.5 to 4.5 Arkansas, U.S. ICL Jordan 0.06 to 0.11 0.1 to 0.2 Sea Water Underground Salt Lake Underground Dead Sea (China, Ja
Slide 18: Diversified approach to growth
Diversified approach to growth Driving global specialties transformation 3Q’24 sales by region 3Q’24 sales by business US$ US$ SA $417M IP $309M Asia $407M 6% Potash $389M 17% NA $313M 24% PS $577M Europe $510M GS $538M 30% RoW $106M 29% 21% 23% 18% 32% Note: Sales by business exclude other activiti
Slide 19: Financial highlights
Financial highlights Third quarter 2024 S&P reaffirmed Continued focus on Savings and efficiency BBB- rating with cash generation efforts ahead of plan stable outlook Quarterly dividend Available resources Net debt to adjusted distribution of $68M, of $1.7B EBITDA of 1.2 (1) for 4.6% yield Notes: Av
Slide 20: Updating guidance
Updating guidance Full year 2024 Specialties-driven EBITDA(1) of $0.95B to $1.05B, up from $0.8B to $1.0B Limiting total annual 2024 potash sales volumes to 4.6Mmt, already committed, in expectation of improved conditions in 2025 Expected tax rate of approximately ~28% (1) Specialties-driven EBITDA
Slide 21: Thank you
Thank you Co n ta c t Pe g g y. Re i l l y T h a r p @ i c l - g r o u p . co m f o r m o r e i n f o r m a t i o n o n I C L View our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 22: Appendix
Md Appendix Third Quarter 2024
Slide 23: Calculation of segment EBITDA
Calculation of segment EBITDA Third quarter 2024 Industrial Products US$M 3Q’24 2Q’24 3Q’23 Phosphate Solutions(2) US$M 3Q’24 2Q’24 3Q’23 Segment sales $309 $315 $267 Segment sales $577 $572 $595 Segment operating income $50 $60 $31 Segment operating income $100 $93 $73 Segment operating margin 16%
Slide 24: Segment results analysis
Segment results analysis Third quarter 2024 Segment Sales Industrial Phosphate Growing Segment EBITDA Industrial Phosphate Growing Potash(1) Potash(1) US$M Products Solutions(2) Solutions US$M Products Solutions(2) Solutions 3Q’23 $42 $164 $118 $37 3Q’23 $267 $526 $595 $550 Quantity $16 ($22) $18 $2
Slide 25: Reconciliation tables
Reconciliation tables Calculation of adjustments for third quarter 2024 Adjusted EBITDA Adjusted NI and diluted EPS 3Q’24 2Q’24 3Q’23 3Q’24 2Q’24 3Q’23 US$M US$M, ex. per share Net income $127 $130 $142 Net income, attributable $113 $115 $137 Financing expenses, net $39 $33 $42 (1) Adjustments $29 $
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