Slide 1: Third Quarter 2022 Financial Results
Third Quarter 2022 Financial Results Raviv Zoller | President and CEO November 9, 2022
Slide 2: Important legal notes
Important legal notes Disclaimer and safe harbor for forward-looking statements This presentation and/or other oral or written statements made by ICL Group during its presentation, or from time to time, may contain forward-looking statements within the meaning of the United States Private Securities
Slide 3: Third quarter overview
Third quarter overview Delivering sustainable shareholder value through focus on specialties solutions • Record 3Q and YTD sales, operating income and EBITDA • Record 3Q sales and EBITDA for all specialties businesses: Industrial Products, Phosphate Specialties and Growing Solutions • Record Dead Se
Slide 4: Key third quarter financial metrics
Key third quarter financial metrics Significant year-over-year improvement Sales Adjusted EBITDA(1) Operating Cash Flow US$B US$M US$M Up 41% YoY Up 139% YoY Up $333M YoY $2.9 $2.5 $2.5 $2.0 $1.8 $1,258 $1,002 $1,049 $627 $606 44% 42% $587 40% $344 $325 $438 $273 29% 24% 3Q'21 4Q'21 1Q'22 2Q'22 3Q'2
Slide 5: Third quarter 2022 key financial highlights
Third quarter 2022 Key financial highlights US$M 3Q’22 3Q’21 YoY Change ex. per share Sales $2,519 $1,790 41% Gross profit $1,315 $689 91% Gross margin 52.2% 38.5% 1,371 bps Operating income $935 $321 191% Adjusted operating income(1) $928 $315 195% Adjusted operating margin(1) 36.8% 17.6% 1,924 bps
Slide 6: Industrial Products
Industrial Products Focus on value over volume helped deliver another record quarter Sales $600 Key highlights US$M $437 $500 +13% Record third quarter sales and EBITDA $400 $387 • $300 • Higher pricing across portfolio, helped offset raw material increases $200 • Diverse end-market demand remained
Slide 7: Potash
Potash Operational excellence resulted in production records Key highlights Sales $1,200 US$M $1,000 $854 • Third quarter and YTD Dead Sea production records $800 +114% • Average realized potash price per ton increased $600 $400 to $652 ($697 CIF), up 106% vs. $317 in 3Q’21 $400 $200 • Long-term con
Slide 8: Phosphate Solutions
Phosphate Solutions Strengthening long-term growth prospects Key highlights Sales $1,000 US$M $800 $766 • Record third quarter sales and EBITDA $599 +28% $600 $455 • Higher prices and strong demand for food solutions Specialty $400 $345 Commodity across all regions $200 $254 $311 $0 • Received award
Slide 9: Growing Solutions
Growing Solutions Bolstering long-term growth through expanded portfolio and offerings Key highlights Sales $1,000 US$M $800 • Record third quarter sales and EBITDA $629 +25% $600 $504 • Strong performance of Brazilian acquisitions, plus expansion of synergy potential $400 $200 • Record-setting quar
Slide 10: Making an impact
Making an impact Continued momentum Sustainability Innovation Leadership • Included in Israeli diversity • Introduced biodegradable coated • Leading U.S. efforts to develop and inclusion index fertilizer technology eqo.x sustainable supply chain for ESS • ICL Brazil cited by Great Place • Developed
Slide 11: Updated five-year plan
Updated five-year plan Targeting global leadership across specialties businesses 1 Strong momentum 2 Significant opportunities 3 Well-positioned Note: EBITDA is a non-GAAP financial measure; see appendix for further important information about targeted non-GAAP financial measures. 11
Slide 12: Continued focus on future
Continued focus on future Growing specialties impact to the next level Expanding long-term Targeting consistent Increasing capacity to specialties focus, growth in sales and enable growth in while benefitting EBITDA specialties from market upside Investing in R&D Investing in Maintaining focus on to
Slide 13: Third Quarter 2022 Financial Results
Third Quarter 2022 Financial Results Aviram Lahav CFO
Slide 14: Third quarter 2022 key financial highlights
Third quarter 2022 Key financial highlights US$M 3Q’22 3Q’21 YoY Change ex. per share Sales $2,519 $1,790 41% Gross profit $1,315 $689 91% Gross margin 52.2% 38.5% 1,371 bps Operating income $935 $321 191% Adjusted operating income(1) $928 $315 195% Adjusted operating margin(1) 36.8% 17.6% 1,924 bps
Slide 15: Macro overview
Macro overview • Inflation remains high • Global growth forecasts being slashed • FX fluctuations continue across currencies • Supply chain disruptions remain • Regions and end-markets diverging • Geopolitical tensions persist • Commodity prices moderating 15
Slide 16: Pricing across mineral value chain
$300 $600 $900 $0 $20,000 $0 $40,000 US$/ton US$/day 1Q'17 1Q'17 2Q'17 2Q'17 3Q'17 3Q'17 4Q'17 4Q'17 1Q'18 GMOP FOB NOLA 1Q'18 2Q'18 2Q'18 3Q'18 3Q'18 4Q'18 4Q'18 1Q'19 1Q'19 2Q'19 2Q'19 Supramax Timecharter Average 3Q'19 3Q'19 4Q'19 4Q'19 1Q'20 1Q'20 2Q'20 2Q'20 Commodity price progression 3Q'20 3Q
Slide 17: Crop economics
Crop economics Prices and affordability remain high, but uncertainty remains Commodity crop prices remain high Grain price trends impacting food supply US$/ton US$ $400 $400 Corn Rice Wheat Soybean Fertilizer price index Grain price index $300 $300 $200 $200 $100 $100 $0 $0 Jan-17 Jan-18 Jan-19 Sep-
Slide 18: Sales bridges
Third quarter 2022 Sales bridges Sales by segment Sales US$M US$M $125 $992 $167 $454 ($67) GS $2,519 ($119) $2,519 $629 $50 PS $1,790 $1,790 $766 Specialty 59% ($144) Commodity 41% Potash $854 IP $437 Other ($167) Potash 3Q'22 3Q'21 Solutions Solutions Growing Products Phosphate Indutrial Other Pri
Slide 19: Profit bridges
Third quarter 2022 Profit bridges Adjusted EBITDA(1) by segment Adjusted EBITDA(1) US$M US$M $992 $60 ($208) ($32) ($10) $98 $416 ($66) $127 ($12) $1,049 ($31) $1,049 GS $239 PS $49 Specialty 46% Commodity 54% $537 Potash $438 $438 ($34) IP $170 Other ($24) Potash 3Q'22 3Q'21 Solutions Solutions Gro
Slide 20: Financial overview
Financial overview Well-positioned to deliver sustainable shareholder value Highlights for 3Q’22 • Net debt to adjusted EBITDA(1) improved to 0.5 • Operating cash flow of $606M vs. $273M in 3Q’21 • Substantial free cash flow(1) of $429M vs. $146M in 3Q’21 • Dividend of 24.35 cents per share vs. 8.37
Slide 21: Guidance
Guidance Full year 2022 • Expect to be at upper end of previous guidance range • Adjusted EBITDA of $3,800 million to $4,000 million (1) • EBITDA of specialties businesses to represent between $1,500 million to $1,600 million of total adjusted EBITDA (1) See guidance and non-GAAP financial measures
Slide 22: Thank you
Thank you Co n ta c t Pe g g y. Re i l l y T h a r p @ i c l - g r o u p . co m f o r m o r e i n f o r m a t i o n o n I C L View our interactive data tool at https://investors.icl-group.com/interactive-data-tool/default.aspx
Slide 23: Appendix
Appendix Third Quarter 2022 Financial Results
Slide 24: Industrial Products
Industrial Products Third quarter and year-to-date 2022 Industrial Products US$M 3Q’22 3Q’21 YTD’22 YTD’21 US$M 3Q Sales YTD Sales Segment sales $437 $387 $1,417 $1,195 2021 $387 $1,195 Sales to external customers $428 $383 $1,394 $1,183 Quantity ($54) ($146) Sales to internal customers $9 $4 $23 $1
Slide 25: Potash
Potash Third quarter and year-to-date 2022 Potash US$M 3Q’22 3Q’21 YTD’22 YTD’21 US$M 3Q Sales YTD Sales Segment sales $854 $400 $2,600 $1,129 2021 $400 $1,129 Sales to external customers $684 $310 $2,142 $860 Quantity $10 $23 Sales to internal customers $55 $27 $148 $76 Other and eliminations (1) $
Slide 26: Phosphate Solutions
Phosphate Solutions Third quarter and year-to-date 2022 Phosphate Solutions US$M 3Q’22 3Q’21 YTD’22 YTD’21 US$M 3Q Sales YTD Sales Segment sales $766 $599 $2,479 $1,683 2021 $599 $1,683 Sales to external customers $697 $554 $2,277 $1,560 Quantity ($37) $97 Sales to internal customers $69 $45 $202 $1
Slide 27: Growing Solutions
Growing Solutions Third quarter and year-to-date 2022 Growing Solutions US$M 3Q’22 3Q’21 YTD’22 YTD’21 US$M 3Q Sales YTD Sales Segment sales $629 $504 $1,895 $1,178 2021 $504 $1,178 Sales to external customers $618 $495 $1,863 $1,163 New Brazilian businesses’ contribution - $302 Sales to internal cu
Slide 28: Consolidated results analysis
Consolidated results analysis Third quarter 2022 Operating US$M Sales Expenses EBITDA Income 3Q’21 $1,790 ($1,469) $321 Total adjustments 3Q’21 (1) - ($6) ($6) Adjusted 3Q’21 figures $1,790 ($1,475) $315 $438 Notes: Negative - Primarily decrease in volumes of bromine- and phosphorus-based flame reta
Slide 29: Consolidated results analysis
Consolidated results analysis Year-to-date 2022 Operating US$M Sales Expenses EBITDA Income YTD’21 $4,917 ($4,168) $749 Total adjustments YTD’21(1) - ($13) ($13) Adjusted YTD’21 figures $4,917 ($4,181) $736 $1,100 Notes: New Brazilian businesses’ $302 ($248) $54 $57 Positive – Includes acquisition o
Slide 30: Reconciliation tables
Reconciliation tables Calculation of adjusted EBITDA and free cash flow Calculation of adjusted EBITDA US$M 3Q’22 3Q’21 YTD’22 YTD’21 Net income $635 $242 $1,877 $534 Financing expenses, net $24 $34 $72 $84 Taxes on income $276 $45 $1,027 $132 Less: Share in earnings of equity-accounted investees -
Slide 31: Reconciliation tables
Reconciliation tables Calculation of adj. net income, attributable, adj. diluted EPS and net debt to adj. EBITDA Calculation of adjusted net income, 3Q’22 3Q’21 YTD’22 YTD’21 attributable US$M Net income, attributable $633 $225 $1,828 $500 Adjustments(1) ($7) ($6) ($29) ($13) Total tax adjustments $
Slide 32: Reconciliation tables
Reconciliation tables Calculation of segment EBITDA and breakout of segment sales by region Industrial Phosphate Calculation of segment EBITDA Potash Growing Solutions Products Solutions(1) and margin US$M 3Q’22 3Q’21 3Q’22 3Q’21 3Q’22 3Q’21 3Q’22 3Q’21 Segment sales $437 $387 $854 $400 $766 $599 $6
Slide 33: Segment changes
Segment changes Consolidated specialty agriculture businesses under Growing Solutions (GS) Potash Phosphate Solutions Growing Solutions US$M US$M US$M 2020 2021 2020 2021 2020 2021 FY 1Q 2Q 3Q 4Q FY FY 1Q 2Q 3Q 4Q FY FY 1Q 2Q 3Q 4Q FY Segment sales 1,268 349 380 400 647 1,776 Segment sales 1,816 502
Slide 34: 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 amou