BofAML GLOBAL AG & CHEMICALS CONFERENCE
IMPORTANT LEGAL NOTES
ICL- AT A GLANCE $5.6 B 49 ~11,000 TOP 3 $ 7 .1 B < 3% #2 BBB-
LEADING GLOBAL COMPANY 35%* 22% 25% 3 % 1 % 12% 2 % Sales & marketing office Production site * Percentage of sales by main geographical areas, 2017
ICL – STRATEGIC ADVANTAGES STRATEGIC UNIQUE STARTUP KNOW-HOW LOCATIONS ASSETS NATION proximity to ports & accumulated over customers decades innovation
DNA OF LEADERSHIP #1 #3 #1 #1 #1 #1
LEADERSHIP STRATEGY PRESENT IAS POTASH
LEADERSHIP STRATEGY Phosphate Solutions division PRESENT essential ingredients Industrial Products division IAS - Innovative Ag Solutions division IAS Potash division POTASH
ICL BUSINESS LEADERSHIP Market Share – Specialty Phosphates – Europe, NA, and LatAm 1 Global Bromine Production Capacity 1 ICL Others 24% 11% Chinese producers ICL 11% (Dead Sea) 40% USA (ALB, LXS) 23% Albemarle (Dead Sea) 16% Potash Business Costs by Site and by Company 2 ICL Dead IAS Sea POTASH
ORGANIZATIONAL STRUCTURE ALIGNED WITH STRATEGY IAS - Innovative Ag Solutions division 1 Phosphate Solutions division 1 Potash division 1 Industrial Products division 1 IAS POTASH
LEADERSHIP STRATEGY FUTURE POTASH
Industrial Products Anat Tal President ICL Industrial Products Division
LEADERSHIP STRATEGY POTASH
Industrial Products in a Snapshot
Industrial Products Geographical Sales Distribution
Industrial Products Sales Distribution
Industrial Products Global Footprint
Industrial Products Supply Chain
Industrial Products ’ 4-Pillar Strategy A WORLD LEADER AND BEYOND
Industrial Products Market Leadership
Industrial Products Business Performance ✓ ✓ 83 ✓ 73
Industrial Products Business Performance 2018 Record Segment Profit of $350 Million 2014 2015 2016 2017 2018
Industrial Products Leading the Global Bromine Market • • •
Industrial Products Leading the Global Bromine Market Mercury Biocides Control 80 90 7% 4% 70 50 170 Clear brine 165 Flame fluids Retardants 15% 41% 120 120 Brominated organic intermediates & Industrial 280 280 34% 2018 2023
Industrial Products Global Trends & Major End-Markets
Industrial Products Benefitting from Higher Bromine Prices
Major Trends and ICL-IP ’ s Solutions Trends ICL ’ s Solutions
Industrial Products: Our Products are All Around You
THANK YOU visit us at www.icl-group.com
Appendix
ICL- 90 YEARS OF HISTORY Establishing & growing operations Consolidating & expanding Focusing on innovation and in Israel globally solidifying leadership 1920 s - 1970 s 1970 s - 2014 2000 s -
CORE VALUES LEVERAGING TECHNOLOGY ADOPTING BEST PRACTICES TOP TIER SAFETY EMPLOYER OF AND INDUSTRIAL KNOW FOR CORPORATE PERFORMANCE AND CHOICE HOW TO MEET THE NEEDS OF GOVERMANCE ENVIROMENTAL OUR CUSTOMERS RESPONSIBILITY
SUSTAINABILITY SILVER RANKING $115 M 99% TfS 89%
2018 ACHIEVEMENTS ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Financial Overview
Additional Data Regarding Aligned Divisions (1) (1) (1) (1) (1) Sales FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Potash 1,515 273 299 351 415 1,338 283 314 372 414 1,383 353 346 409 515 1,623 Phosphate Solutions 2,049 556 584 548 498 2,186 523 507 520 487 2,037 525 532 530 495 2,082 Industrial Products (Bromine) 1,034 268 294 275 283 1,120 310 291 289 303 1,193 317 331 328 320 1,296 Innovative Ag Solutions 680 188 189 147 137 661 192 190 154 156 692 221 212 161 147 741 Setoffs and eliminations (239) (59) (55) (53) (34) (202) (48) (48) (46) (53) (196) (53) (59) (57) (67) (236) Sub-Total 5,039 1,226 1,311 1,268 1,299 5,103 1,260 1,254 1,289 1,307 5,109 1363 1362 1371 1410 5,506 (1) Divested businesses' contribution 366 39 66 115 39 260 35 68 151 54 309 41 9 - - 50 Total Sales - ICL 5,405 1,265 1,377 1,383 1,338 5,363 1,295 1,322 1,440 1,361 5,418 1,404 1,371 1,371 1,410 5,556 Profit FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Potash 637 50 64 75 93 282 37 61 65 119 282 62 76 97 158 393 Phosphate Solutions 340 65 70 48 41 224 37 37 52 23 149 51 53 62 38 204 Industrial Products (Bromine) 225 62 71 77 76 286 77 76 77 73 303 78 94 95 83 350 Innovative Ag Solutions 63 20 23 7 5 55 20 19 9 8 56 25 23 7 2 57 G&A & other (349) (86) (91) (92) (84) (353) (64) (65) (64) (73) (266) (71) (56) (60) (67) (254) Sub-Total 916 111 137 115 131 494 107 128 139 150 524 145 190 201 214 750 (1) Divested businesses' contribution 78 4 26 49 9 88 9 25 76 18 128 6 (2) (1) - 3 Total - adjusted operating income - ICL 994 115 163 164 140 582 116 153 215 168 652 151 188 200 214 753
Q4 and FY2018 Highlights ✓ ✓ ✓ ✓ ✓ ✓
Q4 and Full Year 2018 Results Summary
Sequential Growth Throughout 2018
Effective Tax Rate
Successful Optimization of Debt Structure 2019 2020 2021 2022 2023 2024 2025 2026 2038
Decreasing Net Debt/EBITDA Ratio 2013 2014 2015 2016 2017 2018
2018 KEY TAKEAWAYS
Industrial Products
INDUSTRIAL PRODUCTS SOLID LEADERSHIP THE GLOBAL BROMINE UNIQUE BROMINE PRICES MARKET LEADER ADVANTAGE IN CHINA 5,100 175 K TONNES 4,600 4,100 NO. 1 3,600 3,100 2,600 230K TONNES NO . 1
Potash
LEADERSHIP STRATEGY POTASH
POTASH INCREASE YIELDS AND FEED THE WORLD
POTASH 11 0.48 10 9 0.40 8 7 0.32 200 6 5 0.24 100 4 3 0.16 1961 1972 1983 1994 2005 2016 World Crop Expansion of Crop Rotation Increase in Yields World Crop 2027E 2038E 2049E Production in 2005- Arable Land Production in 2050 2007 World population (Bn) Arable land (Ha/Person)
POTASH ICL ’ S UNIQUE POSITION WELL ESTABLISHED IN LOWER COST AND FASTER STRONG POSITION GROWING MARKETS TIME-TO-MARKET 4.9 MILLION TONNES 8 0% PRODUCED FROM THE DEAD SEA NO. 6
POTASH ICL ’ S UNIQUE POSITION WELL ESTABLISHED IN LOWER COST AND FASTER STRONG POSITION GROWING MARKETS TIME-TO-MARKET 4.9 MILLION TONNES Europe US IL China 8 0% PRODUCED FROM THE DEAD SEA India Brazil NO. 6
POTASH OUR GOALS TOP- 3 5 MT 10% 1 M
Total Fertilizer Use by Crop at Global Level
World Main Crops Long Term Forecast Consumption, Stock and Stock to Use Ratio Consumption
2018/19 2016/17 2014/15 2012/13 World Grains Production & Consumption: 2010/11 2008/09 2006/07 2004/05 2002/03 2000/01 1998/99 1996/97 1994/95 1992/93 1990/91 Current Stock to Use Ratio 1988/89 1986/87 1984/85 1982/83 1980/81 1978/79 1976/77 1974/75 1972/73 1970/71 1968/69 1966/67 1964/65 1962/63 1960/61
ICL ’ s Potash Market Share in Fast Growing Markets India Brazil China 3% 4% 15% 2% 13% 11% 21% 30% 31% 12% 4% 23% 19% 19% 16% 38% 24% 2% 13% Uralkali BPC Canpotex APC ICL K+S Other Canpotex Uralkali APC BPC ICL K & S Canpotex Uralkali SQM BPC ICL K&S 14% 5% 9% 5% 20% 4% 20% 10% 20% 12% 25% 29% 23% 16% 23% 31% 9% 25% APC BPC Canpotex ICL Uralkali K+S Uralkali BPC Canpotex ICL APC Others SQM BPC Uralkali K+S Canpotex ICL
Positive Potash Spot Pricing trend
ICL UK: The World ’ s Only Producer of Polysulphate ▪ ▪ ▪ ▪ ▪ ▪
Phosphate Solutions
LEADERSHIP STRATEGY POTASH
PHOSPHATE SOLUTIONS - FOOD TASTE & ESSENTIAL BITE MOUTH FEEL TEXTURE & RISE MINERALS LAST LONGER
PHOSPHATE SOLUTIONS - INDUSTRIAL Oil drilling Oral care Metals Mining Cleaning products Leather Construction Paints & coatings Asphalt Water treatment
PHOSPHATE SOLUTIONS ICL ’ S RECIPE FOR LEADERSHIP UNIQUE BACKWARD WITH A LEADING MARKET AND VALUABLE INTEGRATION MODEL POSITION INNOVATIVE PRODUCTS 5,000 K TONNES Market Share – Specialty Phosphates – Europe, NA, and LatAm 1 ICL Over 90% of phosphate rock 24% 1,190 K TONNES 290 K TONNES Source: ICL estimates (2017)
OUR GOALS PHOSPHATE SOLUTIONS
Phosphate Solutions: Backward Integrated Value Chain
Phosphoric Acid Pricing Trends %
We Have Built a World-Class Advanced Additives Portfolio • • • •
Vast Product Portfolio Serving a Variety of End Food Additives Markets • • • • • • • • • •
Food Specialties: Markets and Competition
Innovative Ag Solutions
LEADERSHIP STRATEGY POTASH
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