Slide 1: Q4 2020 Earnings Conference Call
Qn acer rte Be Ai Raviv Zoller, President & CEO iw A _ 2021 y BS TOL J eS
Slide 2: Important Legal Notes
Important Legal Notes Disclaimer and safe harbor for forward-looking statements The information contained herein in this presentation or delivered or to be delivered to you during our presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in ICL Gr
Slide 3: 4Q'20 Highlights
4Q’20 Highlights Improved sales and operating income driven by all four divisions • All divisions contributed to strong quarterly results ‐ Success achieved, despite negative impact of low commodity prices and lingering COVID-19 issues • Industrial Products: record fourth quarter operating income, u
Slide 4: Key financial metrics
Key financial metrics Improvement for 4Q’20 on quarterly sequential basis Sales Adjusted EBITDA (1) Operating Cash Flow US$B US$M US$M $1.3 $1.3 $268 $1.2 $1.2 $250 $258 $246 $1.1 $226 $212 $201 $203 20% $177 20% $166 19% 19% 18% 19% 20% 17% 15% 13% 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 4Q'19 1Q'20 2Q'20 3Q
Slide 5: 4Q' and FY'20 Key financial highlights
4Q’ and FY’20 Key financial highlights US$M 4Q’20 4Q’19 YoY Chg. FY’20 FY’19 YoY Chg. Sales $1,317 $1,106 +19% $5,043 $5,271 -4% Operating income $139 $88 +58% $202 $756 -73% • Adjusted operating income(1) $143 $88 +63% $509 $760 -33% Net income, attributable $65 $48 +35% $11 $475 -98% • Adjusted ne
Slide 6: Industrial Products
Industrial Products Record sales and operating income in 4Q’20 Key financials US$M Key highlights Sales EBITDA(1) 4Q’20 15% 32% • Record sales and operating income • Recovery progressing in most end markets ‐ Automotive showing signs of recovery ‐ Clear brine fluids unlikely to fully recover in 2021
Slide 7: Potash
Potash Record production in FY’20, despite COVID-19 Key financials US$M Key highlights Sales EBITDA(1) 4Q’20 25% 38% • Improvement due to record production, compared with three- week shutdown for facilities upgrades in 4Q’19 • Dead Sea: potash production records for 4Q’ and FY’20 • ICL Iberia: ramp
Slide 8: Phosphate solutions
Phosphate solutions Record specialties and YPH operating income for FY’20 Key financials US$M Key highlights Sales EBITDA(1) 4Q’20 20% 67% • Specialties sales up 11% YoY, with record operating income ‐ Overall record year for Specialties ‐ Increasing Specialties capacity with WPA plant at YPH in Chi
Slide 9: Innovative Ag Solutions
Innovative Ag Solutions Record 4Q’20 operating income capped a record year Key financials US$M Key highlights Sales EBITDA 4Q’20 9% Record Quarter • Record operating income - record quarter capped a record year ‐ Positive quarterly results, despite seasonality, helped drive growth in annual operatin
Slide 10: 2020 Highlights
2020 Highlights Strategic efforts Environmental, Social and Governance • Acquired Fertiláqua and Growers • Bloomberg ESG Index: ranked 1st in global fertilizers • Consolidated crop nutrition sales and marketing • Bloomberg 2020 GEI: included for 2nd straight year • Achieved capacity records at Dead
Slide 11: Key takeaways
Key takeaways Heading into 2021 Gained good momentum, with all divisions contributing to 4Q’20 sales and operating income improvement Starting 2021 on solid footing, expect worst of 2020 behind us and commodity prices to remain in our favor Strategic actions in 2020 helped set stage for 2021 and bey
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Slide 13: Maintaining financial strength
Maintaining financial strength Highlights for FY’20 Record liquidity of +$1B available – provides flexibility for M&A Operating cash flow of $804M Free cash flow of $188M (1) Net debt to EBITDA 2.5 times Debt extended more than $200M to long-term, due past 2030 (1) Free cash flow is a non-GAAP finan
Slide 14: Pricing across mineral value chain
Pricing across mineral value chain Positive pricing momentum continued beyond 4Q’20 GMOP FOB NOLA Phosphoric acid CFR Elemental bromine China US$/tonne contract India US$/tonne US$/tonne $350 $900 $5,500 $800 $5,000 $300 $4,500 $700 $250 $4,000 $600 $3,500 $200 $500 $3,000 Jan-20 Jul-20 Jan-21 Jan-2
Slide 15: Fourth quarter 2020
Fourth quarter 2020 Low commodity prices impacted sales and profitability Sales $38 $251 US$M $1,317 $1,106 -$78 4Q'19 Commodity prices Exchange rate Quantities 4Q'20 Adjusted EBITDA (1) US$M $4 $27 $98 $268 $20 $201 -$4 -$78 4Q'19 Commodity prices Raw materials Energy & Operating, other Exchange ra
Slide 16: Full year 2020
Full year 2020 Low commodity prices impacted sales and profitability Sales $31 $117 US$M $5,271 -$376 $5,043 FY'19 Commodity prices Exchange rate Quantities FY'20 • IP $380M Adjusted EBITDA (1) • Potash $286M • PS $276M ‐ Specialties$171M,Commodities$104M US$M • IAS $65M • Other($17) $87 $16 $15 $70
Slide 17: The impact of ICL
The impact of ICL Foundation Innovation • + 90 years of history leveraging unique assets • 20 global R&D centers, 250 patent families – with 850 • ~11K employees worldwide granted patents – and +40 external projects • Strategic locations include 42 plants in 13 countries • Focused and highly experie
Slide 18: 2021 Guidance
2021 Guidance Adjusted EBITDA • Providing better clarity around our expectations for 2021 • Expect adjusted EBITDA range of $1.020 billion to $1.120 billion (1) • Guidance based on commodity prices and exchange rates as of beginning of January 2021 • Financial results expected to improve as 2021 pro
Slide 19: THANK YOU!
THANK YOU! Contact Peggy.ReillyTharp@icl-group.com for more information on ICL View our new interactive data tool at https://www.icl-group.com/investors/interactive-data-tool/ 19
Slide 20: APPENDIX
APPENDIX AICL
Slide 21: Fourth quarter 2020 Sales
4Q'19 $1,106 US$M Sales Prices 4Q’20 Exchange rates -$78 $38 Quantities $251 Fourth quarter 2020 4Q'20 $1,317 21 4Q'19 US$M $1,106 4Q’20 Industrial Products $43 Potash $77 $84 Phosphate Solutions IAS $13 -$6 Set-offs, elminations 4Q'20 $1,317
Slide 22: Full year 2020 Sales
FY'19 $5,271 US$M FY’20 Sales Prices -$376 Exchange rates Full year 2020 $31 $117 Quantities FY'20 $5,043 22 FY'19 $5,271 US$M FY’20 Industrial Products -$63 Potash -$148 Phosphate Solutions -$32 IAS $1 $14 Set-offs, elminations FY'20 $5,043
Slide 23: Fourth quarter 2020 Operating income
4Q'19 adjusted $88 US$M Prices -$78 4Q’20 -$4 Exchange rates $98 Quantities Energy & transportation $4 $15 Operating, other expenses Raw materials $20 Operating income Fourth quarter 2020 4Q'20 adjusted $143 $4 Adjustments 4Q'20 reported $139 23 4Q'19 adjusted $88 US$M 4Q’20 Industrial Products $20
Slide 24: Full year 2020 Operating income
FY'19 reported $756 US$M $4 Adjustments FY’20 FY'19 adjusted $760 Prices -$376 Exchange rates -$20 Quantities $70 Full year 2020 Energy & transportation $16 Operating, other expenses -$28 Operating income $87 Raw materials FY'20 adjusted $509 Adjustments $307 FY'20 reported $202 24 FY'19 reported $7
Slide 25: Industrial Products sales
Fourth quarter and full year 2020 Industrial Products sales 4Q’20 FY’20 US$M US$M $4 $6 $1,318 -$73 $1,255 $39 $5 $336 $293 -$1 Quantities Exchange rates 4Q'19 Prices 4Q'20 Quantities Exchange rates Prices FY 2019 FY 2020 25
Slide 26: Industrial Products segment profit analysis
4Q`19 $60 US$M Prices 4Q’20 -$1 Quantities $20 $3 Operating, other expenses Raw materials, energy, -$2 transportation 4Q'20 $80 26 FY'19 $338 US$M Industrial Products segment profit analysis Fourth quarter and full year 2020 FY’20 $4 Prices Exchange rates -$6 Quantities -$40 $9 Operating, other expe
Slide 27: Potash sales
Fourth quarter and full year 2020 Potash sales 4Q’20 FY’20 US$M US$M $1,494 $110 $5 $1,346 -$263 $379 $136 $302 $5 -$64 Quantities Exchange rates 4Q'19 Prices 4Q'20 FY'19 Quantities Exchange rates FY'20 Prices 27
Slide 28: Potash segment profit analysis
4Q'19 $22 US$M 4Q’20 Prices -$64 Exchange -$4 rates Quantities $73 Operating, other $12 expense Energy, Potash segment profit analysis $1 transportation 4Q'20 $40 28 FY'19 $289 US$M Fourth quarter and full year 2020 FY’20 Prices -$263 Exchange -$9 rates Quantities $102 Operating, -$13 other expense
Slide 29: Phosphate Solutions sales
Fourth quarter and full year 2020 Phosphate Solutions sales 4Q’20 FY’20 US$M US$M $63 $15 $1,980 $1,948 -$110 $72 $19 $501 $417 -$7 Quantities Exchange 4Q'19 Prices 4Q'20 Quantities Exchange rates 4Q'19 Prices 4Q'20 rates 29
Slide 30: Phosphate Solutions segment profit analysis
$1 4Q'19 US$M 4Q’20 Prices -$7 Exchange $1 rates $6 Quantities Operating, $4 other expense Energy, $5 transportation Raw materials $11 4Q'20 $21 30 $20 $40 $60 $80 $100 -$20 $120 $0 FY'19 $100 US$M Fourth quarter and full year 2020 FY’20 Phosphate Solutions segment profit analysis Prices -$110 Opera
Slide 31: Innovative Ag Solutions sales
Fourth quarter and full year 2020 Innovative Ag Solutions sales 4Q’20 FY’20 US$M US$M $7 $15 $717 $731 -$8 $6 $9 $163 $150 -$2 Quantities Quantities FY'20 Exchange rates FY'19 Exchange rates 4Q'19 Prices 4Q'20 Prices 31
Slide 32: Innovative Ag Solutions segment profit analysis
-$2 4Q'19 US$M 4Q’20 -$2 Prices Energy, transportation -$1 Exchange $1 rates Quantities $2 Raw $7 materials $5 4Q'20 32 FY 2019 $21 US$M Fourth quarter and full year 2020 FY’20 Prices -$8 Innovative Ag Solutions segment profit analysis $1 Exchange rates $4 Quantities $3 Operating & other expenses Ra
Slide 33: Finance expenses
Finance expenses US$M 4Q’20 4Q’19 FY’20 FY’19 Liabilities(1) $2,750 $2,520 $2,800 $2,700 Interest rate 3.9% 4.2% 3.8% 4.2% Interest expenses $27 $27 $107 $114 Interest capitalization ($7) ($6) ($24) ($19) Interest expenses, net $20 $21 $83 $95 Total hedging transactions, balance sheet ($11) $1 $20 (
Slide 34: Effective tax rate
Effective tax rate US$M 4Q’20 4Q’19 FY’20 FY’19 Adjusted income before tax(1) $98 $63 $356 $632 Normalized tax rate 20% 22% 20% 21% Normalized tax expenses $19 $14 $72 $131 Carryforward losses not recorded for tax ($2) ($1) $0 $2 purposes Exchange rate impact and other items $8 $2 $13 $14 Adjusted t
Slide 35: Reconciliation tables
Reconciliation tables Slide one of three Calculation of adjusted income before tax 4Q’20 4Q’19 FY’20 FY’19 US$M Adjusted operating income(1) $143 $88 $509 $760 Finance expenses ($46) ($25) ($158) $129 Share in earnings (losses) of equity-accounted investees and adjustments to financial expenses $1 -
Slide 36: Reconciliation tables
Reconciliation tables Slide two of three Calculation of adjusted EBITDA 4Q’19 1Q’20 2Q’20 3Q’20 4Q’20 FY’20 FY’19 US$M Net income attributable to shareholders of the company $48 $60 ($168) $54 $65 $11 $475 Financing expenses, net $25 $52 $31 $29 $46 $158 $129 Taxes on income $15 $20 ($33) $14 $24 $2
Slide 37: Reconciliation tables
Reconciliation tables Slide three of three Calculation of free cash flow US$M 4Q’20 4Q’19 FY’20 FY’19 Cash flow from operations $258 $212 $804 $992 Additions to property, plant and equipment, and dividends from equity-accounted investees(1) ($178) ($155) ($616) ($546) Free cash flow $80 $57 $188 $44
Slide 38: Non-GAAP Financial Measures
Non-GAAP Financial Measures The company only provides guidance on a non-GAAP basis. We do 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 amounts that are necessary for such re