Icl Group Ltd. · TASE:ICL
Icl — BofAML Global Agriculture & Chemicals Conference (February 2019)
29 slides from Icl's conference presentation, Feb 1, 2019
Slide 1: BofAML Global Ag & Chemicals Conference
BofAML GLOBAL AG & CHEMICALS CONFERENCE
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: ICL - At a Glance
ICL- AT A GLANCE $5.6B 49 ~11,000 TOP 3 Sales in 2018, Manufacturing plants Employees worldwide, Leading supplier across with balanced in 15 countries 4,500 in Israel most business lines and product portfolio worldwide target markets mi' $7.1B <3% BBB- #2 Market Cap as of Feb 15, 2018 Industry leadi
Slide 4: Leading Global Company
LEADING GLOBAL COMPANY 35%* 22% 3% 25% 1% ,,' 12% 2% t AICL 9 Production site ' Sales & marketing office * Percentage of sales by main geographical areas, 2017 4
Slide 5: ICL – Strategic Advantages
ICL – STRATEGIC ADVANTAGES UNIQUE STRATEGIC STARTUP ASSETS LOCATIONS KNOW-HOW NATION proximity to ports & customers accumulated over decades innovation 5 AICL
Slide 6: DNA of Leadership
DNA OF LEADERSHIP #1 #3 #1 Globally in bromine Most competitive Globally in specialty globally in potash phosphates #1 #1 #1 Globally in phosphorus In western Europe in Globally in soluble based flame retardants compound PK fertilizers phosphate based fertilizers 6 AICL
Slide 7: Present
LEADERSHIP STRATEGY PRESENT IAS POTASH 7 AICL
Slide 8: Present: ICL Divisions
LEADERSHIP STRATEGY Phosphate Solutions division PRESENT ICL provides essential ingredients for various industrial and food applications Industrial Products division IAS - Innovative Ag Solutions division ICL's bromine solutions are all around us I ICL specialty fertilizers provide growers making co
Slide 9: ICL Business Leadership
ICL BUSINESS LEADERSHIP Market Share – Specialty Phosphates – Europe, NA, and LatAm1 Global Bromine Production Capacity1 ICL Others 24% 11% Chinese producers 10% (Dead Sea) Global leadership 39% USA (ALB, LXS) In Specialty 24% Phosphates Albemarle Global leadership (Dead Sea) In Bromine 17% Potash B
Slide 10: Organizational Structure Aligned with Strategy
ORGANIZATIONAL STRUCTURE ALIGNED WITH STRATEGY Phosphate Solutions division1 IAS - Innovative Ag Solutions division1 A leading provider of value added solutions for Creating leadership in advanced crop the industrial, food and agriculture end markets nutrition and agri-centric solutions $2.1B 3% 8%
Slide 11: Future
LEADERSHIP STRATEGY FUTURE POTASH 11 AICL
Slide 12: Industrial Products
Industrial Products Anat Tal President ICL Industrial Products Division
Slide 13: Leadership Strategy
LEADERSHIP STRATEGY POTASH 13 AICL
Slide 14: Industrial Products in a Snapshot
J Industrial Products in a Snapshot 0 $1.3B sales, $350M segment profit(I) 11 manufacturing sites WW ~1,620 employees 3 R&D centers (1) Excluding G&A expenses 14 AICL
Slide 15: Geographical Sales Distribution
J Industrial Products Geographical Sales Distribution 27% 34% 31% Percentage of 2018 sales 15 AICL
Slide 16: Sales Distribution
J Industrial Products Sales Distribution By Minerals By Business ■ Bromine ■ Phosphorus ■ Specialty Minerals ■ Flame Retardants ■ Industrial Solutions ■ Specialty Minerals Percentage of 2018 sales 16 AICL
Slide 17: Global Footprint
J Industrial Products Global Footprint Europe IP Europe Far East ICL Hong Kong IP Bitterfeld ICL Shanghai IP Terneuzen ICL Korea Scora ICL Ja an SBCL LYG Zhapu -- ICL Israel 1;;;;;.;:;;,; Dead Sea Bromine Dead Sea Salts Periclase ICL India Neot- Hovav USA Beer-Sheva India IMI Israel 17 AICL
Slide 18: Supply Chain
J Industrial Products Supply Chain Produced Bromine compounds 35 3d 104s'4p' plants: Br Bromine -)i,ii Israel 79.904 Netherlands China MgCl Salts Specialty KCL Minerals plants: ) Customers Israel France * PurchasedC1J t Phosphorus p (P4) compounds plants: Phosphorus Germany 30.974 USA (1) RM sourced
Slide 19: Global Trends & Major End-Markets
J Industrial Products Global Trends & Major End-Markets Enabling a variety of industries to enjoy safer products as well as more efficient and sustainable production '\::7 • • Standard of living "~ Population n Regulation & environmental awareness ~ ~ ENERGY ELECTRONICS AUTOMOTIVE BIOCIDES af8 PHARM
Slide 20: Leading the Global Bromine Market
J Industrial Products Leading the Global Bromine Market • The Dead Sea provides the highest concentration of Bromine 10.0 - 12.0 g/liter • Abundant supply • Cost of production is related to concentration 4.5 - 5.5 2.5 - 4.5 0.5 - 0.9 0.06 - 0.11 0.1 - 0.2 Sea Water Underground Shallow Sea Salt Lake
Slide 21: Leading the Global Bromine Market
J Industrial Products Leading the Global Bromine Market ICL-IP holds the largest bromine capacity Bromine demand by industry Global bromine capacity by producer (KMD Average market utilization rate of 70-80% 720 705 Mercury Other 80 Biocides Control 90 7% 4% China 70 50 USA (ALB & LXS) 170 165 Clear
Slide 22: Benefitting from Higher Bromine Prices
J Industrial Products Benefitting from Higher Bromine Prices Strict enforcement of environmental and safety regulations in China, the depletion of Chinese resources and our superior quality enable us to capitalize on our leading market position 5,100 4,600 4,100 3,600 3,100 AICL Source: Bloomberg 22
Slide 23: Market Leadership
J Industrial Products Market Leadership in Flame Retardants in Bromine Capacity in Bromine Compounds Plant in Bromine Isa-tank Fleet in Brominated Biocides in Phosphorus FRs in Clear Brine Fluids in Self-extinguishing Hydraulic Fluids in Solid MgCl in Magnesia for the Nutraceutical Market AICL 23
Slide 24: Industrial Products' 4-Pillar Strategy
J Industrial Products’ 4-Pillar Strategy A WORLD LEADER AND BEYOND CONCRETING OUR GLOBAL LEADERSHIP OF THE BROMINE MARKET Value over volume Increasing demand Operational Advocacy incl. long term via new bromine excellence & regulation strategic agreement applications with major customers AICL 24
Slide 25: Business Performance
J Industrial Products Business Performance 2018 RESULTS Q4 RESULTS $ millions +9% +6% ✓AU-time record annual segment profit - ✓Higher realized prices across the bromine value chain, as well as higher prices & +16% +14% volume of phosphorous derivatives - - 83 73 ✓ Higher prices drove approx. 2% expa
Slide 26: Business Performance: 2018 Record Segment Profit
J Industrial Products Business Performance 2018 Record Segment Profit of $350 Million $ millions - - - - - - - ;~ ;--- - -~1,296 .- 1,193 1,119 871 2014 (1) 2015 (1) 2016 2017 2018 - segment Profit - Sales AICL (1) Segment profit may not be consistent with actual published results due to changes in
Slide 27: Major Trends and ICL-IP's Solutions
J Major Trends and ICL-IP’s Solutions Trends ICL’s Solutions - Electric car/ New generation Autonomous car polymeric FRs ---- Renewable energy Electrolytes for storage Bromine Flow battery Clean Air MERQUEL® Mercury Emissions Control ,_ Home automation New generation polymeric FRs Water shortage and
Slide 28: Our Products are All Around You
J Industrial Products: Our Products are All Around You LIVE - Our products are all around you. EVEll,VWffEU. EVER,VDAV. AICL 28
Slide 29: Thank You
THANK YOU visit us at www.icl-group.com 29 AICL
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