Icl Group Ltd. · TASE:ICL
Icl — Israel Chemicals — Investor Day (June 2017)
118 slides from Icl's investor day presentation, Jun 22, 2017
Slide 1: ICL Israeli Investor Day Tel Aviv June 22nd, 2017
ICL Israeli Investor Day Tel Aviv June 22 nd , 2017
Slide 2: Safe Harbor
Safe Harbor 2 This Presentation (references to which and to any information contained herein shall be deemed to include information which h as 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 providin
Slide 3: ICL in Numbers
55 282 60 194 255 84 3 EMPLOYEES – DEC 2016 13 , 414 661 1 , 338 1 , 163 966 953 659 Specialty Fertilizers Potash & Mg. Phosphates Advanced Additives Industrial Products Food Specialties ICL In Numbers 2016 SALES $ 5 , 363 m 2016 DIVIDEND YIELD 4.27 % 2016 FREE CASH FLOW $ 34 6 m 2016 ADJU
Slide 4: Strategic Directions
Strategic Directions Mr. Asher Grinbaum Acting CEO
Slide 5: | Sitter needs take us ie
| Sitter needs take us ie
Slide 6: August 1973
August 1973 6
Slide 7: Who Is ICL?
Who Is ICL?
Slide 8: Risk Diversification and Balance
Risk Diversification and Balance
Slide 9: Stable & Diversified Assets
Essential Minerals Specialty Solutions Stable & Diversified Assets
Slide 10: Commodities
AICL | Commodities = } Mine fers také us, 10
Slide 11: The Dead Sea
The Dead Sea Zener
Slide 12: Global Distribution
Global Distribution Europe 26% v, China @ - 10% ? Other countries Israel of © 25% 4% India. % % Brazil ° @ Manufacturing plant ey ° @ cistribution center 3 @ Global HQ @ Sales office © Regional Ha SAA terenceds takes Xe
Slide 13: Much More Than A Potash Company
Much More Than A Potash Company
Slide 14: Innovation
AXICL | Innovation ate r ; <A iere neds tae us ig
Slide 15: Population growth
Population growth
Slide 16: Profitability increase
AXICL | Profitability increase
Slide 17: ICL's Top Management
ICL’s Top Management: Over 140 Years of Experience Kobi Altman , CFO 2 years in ICL Charles Weidhas , COO 10 years in ICL Ofer Lifshitz, President, ICL Essential Minerals 21 years in ICL Yakir Menashe , EVP Global HR 11 years in ICL Lisa Haimovits , SVP General Counsel & Company Secretary 8 years
Slide 18: Our home base – The Negev
Our home base – The Negev
Slide 19: Our home base – The Community
Our home base – The Community
Slide 20: Financial Overview
Financial Overview Kobi Altman CFO
Slide 21: ICL's Minerals Value Chains
ICL’s Minerals Value Chains Food Specialties Advanced Additives Industrial Products Specialty Fertilizers Phosphates Potash & Magnesium Mercury Emission Bromine Industrial Solutions Clear Brine Fluids Flame Retardants Fire Safety Industrial Phosphate Salts and Acids Liquid & Water Soluble Fertili
Slide 22: ICL's Market Focus
ICL’s Market Focus Mercury Emission Bromine Industrial Solutions Clear Brine Fluids Flame Retardants Fire Safety Industrial Phosphate Salts and Acids Liquid & Water Soluble Fertilizers CRF and SRF Food Additives Compound NPKs Pure Phosphoric Acid SSP, TSP, DAP, MAP Green Phosphoric Acid Polysulph
Slide 23: ICL Portfolio is Addressing Mega Trends
ICL Portfolio is Addressing Mega Trends Need for intensive food production Changes in Food consumption behavior High - Tech Growth Ensuring access to affordable, sustainable and modern energy Regulations to protect the environment Specialty Fertilizers Potash Phosphate Food Ingredients Organic wh
Slide 24: Organizational Structure
Potash & Magnesium Noam Goldstein ICL Essential Minerals Division Specialty Solutions Division Specialty Fertilizers Phosphate Food Specialties Advanced Additives Industrial Products Eli Amon Yakov Kahlon Rene Krebs James Moffatt Anat Tal Ofer Lifshitz Alon Gil Eli Glazer O rganizational Structur
Slide 25: Cost Reduction
Cost Reduction Efficiency gains contribution breakdown Operational Excellence Procurement Labor 65 % 35 % External factors ICL initiatives 2016 vs. 2015 cost/tonne reduction breakdown FY2013 FY2014 FY2015 FY2016 Cost per tonne reduction
Slide 26: Strict CapEx Management while Investing in Future Growth
500 - 550 619 680 794 887 401 355 350 337 2017E 2016A 2015A 2014A 2013A CapEx Depreciation and amortization Strict CapEx Management while still Investing in Future Growth CapEx ($M)
Slide 27: Improving Working Capital Management and Cash Flow Generation
1 , 067 1 , 103 1 , 203 1 , 297 1 , 337 1 , 406 1 , 274 1 , 179 1 , 306 1 , 251 1 , 384 1 , 573 1 , 600 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Improving Working Capital Management and Cash Flow Generation $ Million * Free cash flow
Slide 28: Capital Allocation Approach
Ϯϴ Capital Allocation Approach Drive long - term value creation Reduce debt level Solid shareholders’ return FINANCIAL STABILITY
Slide 29: Key Takeaways
Key Takeaways Commodity business environment continues to be challenging 29 ICL’s balanced structure strategy is bearing fruits ICL’s underlying performance is solid and improving
Slide 30: Essential Minerals Division
Essential Minerals Division Ofer Lifshitz President ICL Essential Minerals
Slide 31: Organizational Structure
Organizational Structure ICL Essential Minerals Division Specialty Solutions Division Specialty Fertilizers Phosphate Potash & Magnesium Food Specialties Advanced Additives Industrial Products Essential Minerals Division
Slide 32: ICL Essential Minerals Profile
ICL Essential Minerals Profile 32 * Before setoffs and eliminations ** Before G&A expenses All numbers are rounded 2016 Sales Volume 2016 Sales* $ 3 , 00 M 2016 Adjusted Operating Income** Potash 5 , 160 K ton Fertilizers 2 , 660 K ton Polysulphate 200 K ton Potash 5 , 300 K ton Phos. Rock 5 , 750
Slide 33: ICL Essential Minerals - Organizational Structure
ICL Essential Minerals - Organizational Structure 33 Business Development HR Finance Sales, Marketing & Logistics Alon Gil 23 years in ICL Specialty Fertilizers Eli Amon 26 years in ICL Phosphate Yakov Kahlon 22 years in ICL Potash & Magnesium Noam Goldstein 31 years in ICL President, ICL Essentia
Slide 34: ICL Essential Minerals Division
ICL Essential Minerals Division Agriculture Potash Phosphate Specialty Fertilizers Commodity Semi - specialty Specialty
Slide 35: Global Fertilizer Demand
35 Growing population Dietary shifts Arable land per capita Biofuels More grains Increased yields More fertilizers More people want more… Demand for fertilizers is closely linked to the demand for food and fuel crops Global Fertilizer Demand
Slide 36: Population, Meat and Fertilizers
36 Meat Consumption Population Fertilizer consumption 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Index, relative to 1962 Population, Meat and Fertilizers [Base 1962 ] ▪ Fertilizer demand increases faster than population growth ▪ Correlates better to improved dietary consumption ▪ Economic crisis af
Slide 37: Total Fertilizer Use by Crop at Global Level
37 Cereals 37 % Oilseeds 20 % Tot. Other 43 % Wheat 6.2 % Rice 12.6 % Maize 14.9 % Other Cereals 3.7 % Soybean 9.0 % Oil Palm 7.2 % Other Oilseeds 3.5 % Fibre Crops 2.8 % Sugar Crops 7.7 % Roots/Tubers 3.8 % Fruits 6.6 % Vegetables 10.0 % Oth Crops 11.8 % Source: IFA - Assessment of Fertilizer Use b
Slide 38: World Main Crops Long Term Forecast
38 World Main Crops Long Term Forecast Consumption, Stock and Stock to Use Ratio 16% 20% 24% 28% 32% 36% 40% 44% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Stock to Use Ratio Billion Tonnes Wheat Coarse grains Rice Oilseeds Ending stocks Stock to Use Stock to use Ratio Consumption Source: OECD - FAO Agricultur
Slide 39: Global Fertilizer Consumption
Global Fertilizer Consumption Global market share 39 0 20 40 60 80 100 120 140 1962/63 1963/64 1964/65 1965/66 1966/67 1967/68 1968/69 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89
Slide 40: ICL Potash Market Share
36 % 17 % 22 % 7 % 12 % Russia Belarus Canada Jordan ICL Potash Market Share India Brazil China 40 3.8 Mt 8.8 Mt 6.8 Mt Total Import 2016 29 % 17 % 6 % 22 % 13 % Canpotex Uralkali SQM BPC ICL 23 % 20 % 25 % Canpotex Uralkali APC BPC ICL 18 % 12 %
Slide 41: TSP Trade 2016
TSP Trade 2016 Morocco 29 % China 25 % Israel 15 % Tunisia 12 % Bulgaria 8 % Mexico 5 % Others 6 % Major Exporters Brazil 28 % Bangladesh 27 % USA 13 % Australia 12 % Indonesia 11 % Iran 9 % Major Importers Total Global Trade = ~ 1.4 Mt P 2 0 5 Source: CRU Phosphate Rock Outlook (Apr. 2017 ) 41
Slide 42: Potash - Operational advantages
ICL UK North East England Conventional mining Potash - Operational advantages ICL Iberia Spain, Catalonia Conventional mining ▪ Vast raw material source (Israel, Spain) ▪ Unlimited open - air stockpiling capacity (Israel) ▪ Low production cost (Israel) ▪ Synergy with other plants in Sdom site. ▪
Slide 43: Phosphate - Operational advantages
Phosphate Green Phosphoric Acid SSP, TSP Pure Phosphoric Acid Food additives Controlled & slow release fertilizers Liquid & water soluble fertilizers Industrial phosphate Salts and acids P 2 S 5 , fire safety Phosphate - Operational advantages The operational advantages of Phosphate, starting with t
Slide 44: Phosphate - Operational advantages
Phosphate - Operational advantages 18 % ICL Amfert Holland – Amsterdam Germany - Ldwigshafen Rotem Israel Israel, South Rotem Turkey YPH JV CHINA ICL Cajati Brazil ▪ Logistic advantages. ▪ Geographic locations ▪ Hub center in Europe (Amfert) ▪ Synergy within the production sites. ▪ Production opt
Slide 45: Improving our competitiveness
45 Improving our competitiveness Tight cost control Efficiency program in all sites Utilize synergies within ICL Operational Excellence
Slide 46: Operational Excellence
Operational Excellence ▪ World class operational standards ▪ Workforce Empowerment ▪ Innovation – Industry 4.0 ▪ Best practice sustainability 46 Leading to Organizational Culture of Continuous Improvement AFTER
Slide 47: Operational Excellence
Operational Excellence Hundreds of single initiatives 47 Energy Saving 2016 ~ $ 15 M Accumulated Energy Savings since 2012 ~ $ 81 M i.e. – Energy Saving After Before
Slide 48: Improved Competitiveness
Green phosphoric Acid Cost $/tonne FOB FY2013 FY2014 FY2015 FY2016 FY2013 FY2014 FY2015 FY2016 Improved Competitiveness 2017 Efficiency and Value Creation Target ~$ 100 million For ICL 48 Potash average realized full cost per tonne
Slide 49: Polysulphate: The Future of ICL UK
49 Polysulphate™: The Future of ICL UK Readily available - new natural fertilizer in the market Polysulphate Sales plan, K Tonnes 50 % 14 % K S 36 % Mg+Ca 200 3 , 000 6 , 000 0 1,000 2,000 3,000 4,000 5,000 6,000 2016 2017 2018 2019 2020 2025 2030 1 billion ton reserves Business advantages Environme
Slide 50: ICL Iberia
ICL Iberia Cabanasas Mine Suria Plant Vilafruns Mine Sallent Plant Moving from 2 production centers to one production center while reducing the cost per tonne Building access ramp Vacuum Salt Plant New Dock in the port Operational improvements and reduction in cost per tonne In the next step – in
Slide 51: YPH
YPH YPH YPH – JV of ICL and YTH since end 2015 • To become a player in the Chinese market. • Establish the same Value Chain as in Rotem. ICL has history of more than 20 years of activity in China What was done till now ? ▪ Integration ▪ Operational excellence ▪ Moving from Commodity to Specialty.
Slide 52: Specialty Fertilizers – highlights
Specialty Fertilizers – highlights Growing Markets Strong Sales Network Best - in - Class R&D / Technology Container Nursery & Greenhouse potting plants Sport pitches, golf courses and municipal areas Specialty Agriculture Horticulture Turf &Landscape Fruit, vegetables & arable crops P K MKP MAP NOP
Slide 53: Key takeaways
Key takeaways P 2 O 5 value chain in Israel and in China Significant potash presence in emerging markets New semi - specialty activity Low production cost Great potential growth for the SF BU Experienced management team
Slide 54: Specialty Fertilizers
Specialty Fertilizers Eli Amon ICL Specialty Fertilizers’ Manager
Slide 55: Organizational Structure
Organizational Structure ICL Essential Minerals Division Specialty Solutions Division Specialty Fertilizers Phosphate Potash & Magnesium Food Specialties Advanced Additives Industrial Products Specialty Fertilizers
Slide 56: Global needs evolve: Population growing
Global needs evolve Population is constantly growing
Slide 57: Global needs evolve: Urbanization
Global needs evolve Urbanization keeps on spreading of population lived in cities
Slide 58: Global needs evolve: Urbanization keeps on spreading
Global needs evolve Urbanization keeps on spreading
Slide 59: Global needs evolve: Arable land per capita
Global needs evolve Arable land per capita is diminishing 1 BN 2 BN 3 BN 4 BN 5 BN 6 BN 7 BN 8 BN 9 BN
Slide 60: Specialty Fertilizers and Bio solutions in Ag input market
59 Specialty Fertilizers and Bio solutions became an important part of the Ag input market Others, 32 % Traditional Fertilizers, 63 % Specialty Fertilizers 3.5 % ~$ 150 bn Nontraditional application of nutrients (i.e. Soluble, Liquids and Coated) Advanced bio solutions for plant nutrient and protect
Slide 61: Global Trends & Needs drive development towards specialty fertilizers
60 Global Trends & Needs will drive development towards specialty fertilizers Changing Food Chain Environmental Trends New Grower Practice Regulatory Pressure Expected Nutrient use efficiency growth : + 4 - 7 % per year Zero growth Fertilizers 2020 EU Nitrate Directive
Slide 62: A Global Manufacturer of Products for Agriculture
A Global Manufacturer of Products that Fulfills Essential Needs in the Agriculture Market India Japan Malaysia Australia Kenya Turkey Germany Poland Italy France Brazil US 61 Sales Offices Production sites a 1 , 000 Employees Worldwide 49 % 24 % 18 % 9 % Europe IL&ME ASIAPAC America a $ 660 m sales
Slide 63: Broad offer of specialty fertilizer technologies
62 ICL SF has a broad offer of unique specialty fertilizer technologies Foliar Fertilizer Optimal Plant Nutrition Less is more! Fertigation/ Soluble Fertilizers Controlled Released Fertilizers ICLSF has developed specialized fertilizer products that match application technique: foliar, drip or soil
Slide 64: Our Core Market
63 Our Core Market Specialty Agriculture Fruit, vegetables & arable crops Turf & Landscape Golf courses, sports fields & landscape Ornamental Horticulture Nursery stock, perennials, pot & bedding plants
Slide 65: Our Core Markets and Products
64 Turf & Landscape Golf courses, sports fields & landscape Liquid Fertilizers Growing Media Grass Seeds Water Soluble Fertilizers (WSF) Controlled Release Fertilizers (CRF) Straights (MAP / MKP / Pekacid) Plant Protection Products Adjuvants Water Conservation Agents Liquid Fertilizers Slow Release
Slide 66: Turf: La Liga stadiums use ICL products
Most stadiums of “La Liga” use ICL products (fertilizers& seeds) 65 Camp Nou Our Core Markets and Products / Turf
Slide 67: Turf: Wimbledon
Our Core Markets and Products / Turf 66 Wimbledon
Slide 68: Turf: Cardiff
67 Our Core Markets and Products / Turf Cardiff 67
Slide 69: Water Conservation Agents
68 erP 7 Q 0 https://www.youtube.com/watch?v=S NoVU H 2 Flow Our Core Markets and Products / Water Conservation Agents
Slide 70: ICL Specialty Fertilizers Development
69 ICL Specialty Fertilizers is a leader in the market & LandscapeICL Specialty Fertilizers Development 2010 2011 04 2011 05 2012 Xcalibur (USA ) 11 2012 09 2014 1993
Slide 71: ICLSF is a leader in the market
70 ICLSF is a leader in the market Turf, Ornamental Horticulture & Landscape • Leader in Turf in Europe & Middle East • # 1 in CRF/Solubles in Ornamental
Slide 72: Strong positioning in the Spec-Ag market
71 Strong positioning in the Spec - Ag market Specialty Agriculture • # 1 in Crystaline PK solubles • # 1 in Liquids in Spain and Israel • Top 3 in Fertigation
Slide 73: Global players by Product Categories
72 Global players by Product Categories Coated Fertilizers Solubles / Straights Liquids SRF CRF Soluble NPK MAP/ MKP SOP/CN NOP Bulk Liquids Foliar Liquids ICL - SF ^ ^ ^ ^ ^ ^ Compo ^ ^ ^ ^ Haifa Chemicals ^ ^ ^ ^ YARA ^ ^ ^ SQM ^ ^ ^ ^ Kingenta ^ ^ ^ ^ Haifa SQM YARA Kingenta Compo ICL - SF
Slide 74: World Market Trends in the key segments
2.7 0.9 1.4 3.5 2.9 0.9 1.6 3.8 4.3 1.5 2.8 5.4 Water Soluble Fertilizers Liquid Fertilizers (NPK's) Controlled / Slow Release Fertilizers Foliar Liquid Fertilizers Market in 2013 $8.5 bn (inc.Foliar) Market in 2015 $9.2 bn (inc.Foliar) Expected Market in 2023 $14 bn 5 % 5 % 7 % 4 % CAGR 2013 - 2023
Slide 75: From Mine to Advice
74 https:// www.youtube.co m/watch?v=D - MX 63 DXllM From Mine to Advice
Slide 76: Key Takeaways ICL Specialty Fertilizers
75 Key Takeaways ICL Specialty Fertilizers A n attractive investment opportunity Fast Growing Industry Driven by Global Trends Leader in Key Markets Well Positioned for Growth with Wide Portfolio Efficient Supply Chain and Strong Professional Sales Force Established Brands End User Inspired Innovati
Slide 77: Specialty Solutions Division
Specialty Solutions Division Eli Glazer President, ICL Specialty Solutions
Slide 78: Specialty Solutions Division
Specialty Solutions Division Eli Glazer President, ICL Specialty Solutions
Slide 79: Organizational Structure
Organizational Structure ICL Essential Minerals Division Specialty Solutions Division Specialty Fertilizers Phosphate Potash & Magnesium Food Specialties Advanced Additives Industrial Products Specialty Solutions Division
Slide 80: Specialty Solutions Profile
Specialty Solutions Profile 79 79 45 % 55 % ~ 4 , 000 OF ICL SALES IN 2016 * % SALES BY BUSINESS UNIT ( 2016 ) 26 % 45 % $ 2.6 B ANNUAL SALES* $ 530 M ADJ. OPERATING INCOME** Food Specialties 37 % Industrial Products 37 % Advanced Additives EMPLOYEES WORLDWIDE Advanced Additives Food Specialties Ind
Slide 81: Specialty Solutions' Organizational Structure
Specialty Solutions’ Organizational Structure Specialty Solutions Division Food Specialties Advanced Additives Industrial Products Rene Krebs , EVP Food 3 years in ICL James Moffatt, EVP Advanced Additives 12 years in ICL Anat Tal , EVP Industrial Products, 25 in ICL Eli Glazer, President, ICL Sp
Slide 82: Specialty Solutions: Main Strategic Goals
Specialty Solutions: Main Strategic Goals 81 ▪ Innovation ▪ Demonstrated success ▪ Asia Pacific ▪ Latin America Cost optimization: Lean & Reliable Expand through differentiation Geographic Expansion ▪ Simple and lean organisation ▪ Operational cost reduction
Slide 83: Global Leaders
Global Leaders 82 Full phosphate chain from Rock to Salts: largest global merchant marketer of Purified Phosphoric acid Variety of single, multi blends and agglomeration technology Highest concentration of Bromine in the World
Slide 84: Advanced Additives Profile
32 % 21 % 17 % 16 % 10 % 4 % Acid Ind. Specialities Specialty Minerals Fire Safety P2S5 P4 BUSINESS LINES SALES DISTRIBUTIONS 2016 Advanced Additives Profile 83 83 $ 1.0 B ANNUAL SALES* $ 194 M OPERATING INCOME* * 2016 before setoffs and eliminations ~ 1 , 400 EMPLOYEES WORLDWIDE Fire Safety P - Sal
Slide 85: Advanced Additives – A Stable Portfolio With Broad Applications
Advanced Additives – A Stable Portfolio With Broad Applications 84
Slide 86: Advanced Additives Trends and Opportunities
Advanced Additives Trends and Opportunities ϴϱ Market Trends ▪ Increasing infrastructure spend ▪ Less potable Water ▪ Global weather pattern ▪ Increased Vehicle demand Strategy: Leverage on market trends
Slide 87: Phosphate Value Chain - Markets and Competition
Phosphate Value Chain - Markets and Competition ϴϲ EUROPE (ICL - $ 420 - 440 M ) NORTH AMERICA (ICL - $ 400 - 420 M) LATIN AMERICA (ICL - $ 150 - 170 M) Source: market size (acid/salts) via internal analysis, published data & other market reports ICL ICL Prayon Budenheim FOSFA Other ICL Prayon Buden
Slide 88: Food Specialties Profile
32 % 24 % 11 % 29 % 4 % Single Phosphates Phosphate Blends Multiblends Proteins Spices Food Specialties Profile 87 87 2016 ANNUAL SALES BREAKDOWN * 2016 before setoffs and eliminations $ 660 M ANNUAL SALES* $ 84 M OPERATING INCOME* NA 28 % Asia/Pacific 32 % EMEA 30 % SA 10 % FOOD GLOBAL PRESENCE ~ 9
Slide 89: Food Specialties Business Model
Ingredients (backward integrated) Co - production of unique formulations Sourced ingredients Fibers & hydrocolloids, emulsifiers Integrated solutions for texture & stability Customized portfolio Joint development Tailored solutions for each customer Nutrition Taste Shelf - life Convenience Basic ing
Slide 90: Food Specialties Accelerated Growth Engine
Market Trends Growth Opportunities Follow key industry trends Food Specialties Accelerated Growth Engine ϴϵ ▪ High - growth new applications in Meat and Dairy ▪ Expand portfolio through tailored solutions ▪ Local presence in growing emerging markets ▪ Growing middle class in emerging markets ▪ Incre
Slide 91: Food Specialties: Markets and Competition
Food Specialties: Markets and Competition 90 Meat, Poultry and Seafood – $ 180 - 200 M Dairy and Protein - $ 250 - 280 M Bakery and Other $ 150 - 180 M
Slide 92: Specialty Solutions Revenue Summary 2016A – 2021P
Organic Market Growth (CAGR 2 %) Specialty Solutions Revenue Summary 2016 A – 2021 P 91 2021 2016 A Growth by Strategy Target ( CAGR 3 - 4 %)
Slide 93: Main Takeaways for Advanced Additives & Food
Main Takeaways for Advanced Additives & Food ϵϮ Backward integration The only Global player with worldwide presence Innovation capabilities & human capital Growing sales and margins despite competitive market environment
Slide 94: Industrial Products
Industrial Products Anat Tal ICL Industrial Products Manager
Slide 95: Organizational Structure
Organizational Structure ICL Essential Minerals Division Specialty Solutions Division Specialty Fertilizers Phosphate Potash & Magnesium Food Specialties Advanced Additives Industrial Products Industrial Products
Slide 96: Agenda
Agenda 95 ICL - IP in a s napshot Future opportunities ICL - IP Strategy Key takeaways
Slide 97: ICL-IP snapshot
ϵϲ ICL - IP snapshot $ 953 * million sales in 2016 11 Manufacturing sites WW 3 R&D centers 1 , 705 Employees * Excluding Specialty Minerals
Slide 98: ICL-IP snapshot
ϵϳ ICL - IP snapshot % of Q 1 2017 Sales 39 % 33 % 25 %
Slide 99: ICL-IP snapshot
ϵϴ ICL - IP snapshot 38 % 48 % 14 % Flame Retardants Industrial Solutions Specialty Minerals 67 % 19 % 14 % Bromine Phosphorus Specialty Minerals % of Q 1 2017 Sales
Slide 100: Global presence
Global presence Plant R&D Sales office ϵϵ USA Israel IP America Gallipolis Ferry Tarrytown Beer - Sheva IMI Dead Sea Bromine Dead Sea Salts Periclase Neot - Hovav ICL Israel Europe Far East India ICL India SBCL LYG Zhapu ICL Hong Kong ICL Shanghai ICL Korea ICL Japan IP Bitterfeld IP Terneuzen Scora
Slide 101: ICL-IP Product Supply Chains
ICL - IP Product Supply Chains ϭϬϬ * RM sourced from 3 rd parties Specialty Minerals plants : Israel France * Bromine compounds plants: Israel Netherlands China Phosphorus compounds plants: Germany USA MgCl Salts KCl Purchased Customers Produced
Slide 102: Global Leader in Bromine
Global Leader in Bromine 0.06 – 0.11 0.1 – 0.2 0.5 – 0.9 2.5 – 4.5 4.5 – 5.5 10.0 – 12.0 g/liter Sea Water (China, Japan) Underground Wells (China) Shallow Sea (Ukraine) Salt Lake (India) Underground Wells (U.S.) Dead Sea Operations (Israel, Jordan) • The Dead Sea provides the highest concentration
Slide 103: Global Bromine Capacity and Demand
280 280 120 120 170 165 90 75 71 84 2016 2021 724 A Global Leader ICL holds the largest capacity (KMT) Global Bromine Capacity, by producer Albemarle (Dead Sea) ICL (Dead Sea) Other USA (ALB & LXS) China Bromine demand by industry - 2016 Market utilization rates: 70 - 80 % 730 Source: ICL estimates,
Slide 104: Global Trends and major End Markets
Global Trends and major End Markets Population Regulation & Environmental Standard of living FURNITURE & TEXTILE TRANSPORTATION WATER TREATMENT CONSTRUCTION INTERMEDIATES FOR FOOD, PHARMA, AGRO and Other OIL & GAS POWER PLANTS ELECTRONICS 103
Slide 105: ICL-IP Market Leadership
ICL - IP Market Leadership in Flame Retardants in Bromine capacity i n Bromine compounds plant in Bromine Iso - tank fleet in Brominated biocides in Phosphorus FRs in Clear Brine Fluids in Self - extinguishing Hydraulic fluids in Solid MgCl in Magnesia for Nutraceutical market 104
Slide 106: Agenda
Agenda 105 ICL - IP in a snapshot Future opportunities ICL - IP Strategy Key takeaways
Slide 107: ICL-IP Pillars strategy
ϭϬϲ ICL - IP 4 Pillars strategy Grow the Core business: ▪ Organic growth ▪ Value strategy ▪ Portfolio management ▪ Expansions Cost reduction: ▪ Operational excellence ▪ Reduction of total costs Advocacy: ▪ FR Standards ▪ SAFR™ ▪ Merquel® in China/EU ▪ Chemistry ban defense Grow the Portfolio: ▪ New
Slide 108: Proven strategy results
ϭϬϳ Proven strategy results 161 191 255 1 , 025 871 953 16 % 22 % 27 % 2014 2015 2016 Adj. O.I Before G&A (MM$) Sales (MM$) • Excluding Specialty Minerals • Source: ICL 20 - F report 2016
Slide 109: Agenda
Agenda 108 ICL - IP in a snapshot Future opportunities ICL - IP Strategy Key takeaways
Slide 110: Trends and ICL Solutions
AICL or Trends and ICL Solutions Renewable energy Electrolytes for Bromine Energy storage Flow battery Stee needs take US \ 110
Slide 111: Major Trends and ICL Solutions: Regulation
Regulation New target 1 - 7 Yet to follow 1.3 Existing 1 - 30 30 Major Trends and ICL Solutions 109 Trends Clean Air Mercury Emissions Control MERQUEL® ICL’s Solutions Comparison of Hg Emission limits (µgr/m 3 )
Slide 112: Major Trends and ICL Solutions: Energy storage
110 Renewable energy Energy storage Electrolytes for Bromine Flow battery Trends ICL’s Solutions Major Trends and ICL Solutions
Slide 113: Major Trends and ICL Solutions: Electric car
111 Trends ICL’s Solutions Electric car/ Autonomous car New generation polymeric FRs Major Trends and ICL Solutions
Slide 114: Major Trends and ICL Solutions: Home automation
112 Trends ICL’s Solutions Major Trends and ICL Solutions Home automation New generation polymeric FRs
Slide 115: Major Trends and ICL Solutions: Water treatment
113 Trends ICL’s Solutions Water shortage and treatment New Biocides Major Trends and ICL Solutions
Slide 116: Major Trends and ICL Solutions: Bromine Capacity
Bromine Bromine Compounds Isotanks Other services 114 Trends ICL’s Solutions Major Trends and ICL Solutions Source: ICL estimates, MarketsandMarkets Depletion of Bromine in China Secured capacity of: Albemarle (Dead Sea) ICL (Dead Sea) Other USA (ALB & LXS) China 280 280 120 120 170 165 90 75 71 84
Slide 117: Agenda
Agenda 115 ICL - IP in a snapshot Future opportunities ICL - IP Strategy Key takeaways
Slide 118: Key takeaways
Key takeaways 116 A leader in the Bromine industry Well positioned for future opportunities Clear, proven, value based strategy ( 16 VS 14 O.I increased by 58 %) 161 191 255 1 , 025 871 953 16 % 22 % 27 % 2014 2015 2016 Adj. O.I Before G&A (MM$) Sales (MM$) SIGNATURE Pursuant to the requirements of