INVESTOR PRESENTATION
IMPORTANT LEGAL NOTES
ICL- AT A GLANCE $5.4 B 49 ~11,000 TOP 3 $ 7 .4 B < 3% #2 BBB-
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 -
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
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 # 2 $115 M 99% SILVER RANKING 89% TfS
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
LEADERSHIP STRATEGY POTASH
INDUSTRIAL PRODUCTS
INDUSTRIAL PRODUCTS SOLID LEADERSHIP THE GLOBAL BROMINE UNIQUE BROMINE PRICES MARKET LEADER ADVANTAGE IN CHINA 180 K TONNES NO. 1 230K TONNES NO . 1
INDUSTRIAL PRODUCTS MAIN GOALS A WORLD LEADER AND BEYOND
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 World Crop Expansion of Crop Rotation Increase in Yields World Crop 1961 1972 1983 1994 2005 2016 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 4.8 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 4.8 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
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 ~4,900 K TONNES Market Share – Specialty Phosphates – Europe, NA, and LatAm 1 ICL ~90% of phosphate rock 24% 1,150 K TONNES 280 K TONNES Source: ICL estimates (2017)
OUR GOALS PHOSPHATE SOLUTIONS
LEADERSHIP STRATEGY POTASH
INNOVATIVE AG SOLUTIONS CREATING LEADERSHIP SPECIALTY FERTILIZERS - THE FAST GROWING INDUSTRY DIVERSIFIED PORTFOLIO FOUNDATION FOR THE FUTURE ~850 K TONNES Coated Solubles / Straights Liquids Fertilizers Solubl MAP/ Bulk Foliar SRF CRF SOP/CN NOP e NPK MKP Liquids Liquids 1.8 ^ ^ ^ ^ ^ ^ ICL-SF OVER 300 3.2 ^ ^ ^ ^ Compo ^ ^ ^ ^ Haifa 0.4 1.8 ^ ^ ^ YARA 25 YEARS SQM ^ ^ ^ ^ Kingenta ^ ^ ^ ^ FASTEST GROWING
THE FARMING OF THE FUTURE: WITH INCREASING PRESSURE TO EXPAND PRODUCTION AND PROTECT OUR ENVIRONMENT, HIGH TECH FARMING TECHNOLOGIES WILL PLAY A CRUCIAL ROLE
IAS LEVERAGING ISRAEL'S HIGH-TECH AND AGRI-TECH ECO SYSTEM ACADEMIC TECHNOLOGICAL BUSINESS TARANIS
THE PERFECT STORM 2 B MORE PEOPLE GROUNDBREAKING GROW MORE CHANGE SOLUTIONS WITH LESS WITHIN 20 YEARS
ICL AIMS TO OFFER FARMERS CUTTING-EDGE SOLUTIONS
INNOVATIVE AG SOLUTIONS GROWTH PORTFOLIO UNIQUE R&D CAPABILITIES INNOVATION DIGITAL TRANSFORMATION GET CLOSER TO GROWER
LEADERSHIP STRATEGY PRESENT&FUTURE POTASH
ICL IS ON THE VERGE OF A TIPPING POINT POSITIVE BUSINESS IMPROVING MARKET SHARE OVERHANG MOMENTUM CONDITIONS REMOVED GROWTH STRATEGY DEBT OPTIMIZATION ALIGNED ORGANIZATION
THANK YOU visit us at www.icl-group.com
Appendix
Financial Overview
Additional Data Regarding Aligned Divisions 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 Potash 1,515 273 299 351 415 1,338 283 314 372 414 1,383 353 346 409 Phosphate Solutions 2,049 556 584 548 498 2,186 523 507 520 487 2,037 533 541 530 Industrial Products (Bromine) 1,034 268 294 275 283 1,120 310 291 289 303 1,193 317 331 328 Innovative Ag Solutions 680 188 189 147 137 661 192 190 154 156 692 221 212 161 Setoffs and eliminations (239) (59) (55) (53) (34) (202) (48) (48) (46) (53) (196) (53) (59) (57) Sub-Total 5,039 1,226 1,311 1,268 1,299 5,103 1,260 1,254 1,289 1,307 5,109 1,371 1,371 1,371 Divested businesses' contribution 366 39 66 115 39 260 35 68 151 54 309 33 - - 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 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 Potash 637 50 64 75 93 282 37 61 65 119 282 62 76 97 Phosphate Solutions 340 65 70 48 41 224 37 37 52 23 149 52 55 63 Industrial Products (Bromine) 225 62 71 77 76 286 77 76 77 73 303 78 94 95 Innovative Ag Solutions 63 20 23 7 5 55 20 19 9 8 56 25 23 7 G&A & other (349) (86) (91) (92) (84) (353) (64) (65) (64) (73) (266) (72) (60) (62) Sub-Total 916 111 137 115 131 494 107 128 139 150 524 145 188 200 Divested businesses' contribution 78 4 26 49 9 88 9 25 76 18 128 6 0 0 Total - adjusted operating income - ICL 994 115 163 164 140 582 116 153 215 168 652 151 188 200
Q3 2018 HIGHLIGHTS Sequential sales were flat Operating income up by 9%. Net income up by 54% Operating income excluding divested businesses (1) increased by 43% EPS was 10 cents compared to 7 cents in Q3 2017 and 8 cents in Q2 2018 Focus on cash flow generation Dividend distribution for Q3 increased by 20%
Q3 2018 Results Summary
Effective Tax Rate
Reconciliation Tables
Successful Optimization of Debt Structure
Decreasing Net Debt/EBITDA Ratio
Industrial Products
ICL-IP Product Supply Chains
Global Trends and Major End Markets INTERMEDIATES FOR FOOD, ELECTRONICS PHARMA, AGRO CONSTRUCTION OIL & GAS and Other WATER FURNITURE & TRANSPORTATION POWER PLANTS TREATMENT TEXTILE
Major Trends and ICL Solutions Trends ICL’s Solutions
Potash
Total Fertilizer Use by Crop at Global Level
World Main Crops Long Term Forecast Consumption, Stock and Stock to Use Ratio
World Grains Production & Consumption: Current Stock to Use Ratio
ICL’s Potash Market Share in Fast Growing Markets India Brazil China 13% 12% 18% 29% 7% 26% 22% 22% 6% 17% 17% Canpotex Uralkali APC Canpotex Uralkali SQM Russia Belarus Canada Jordan ICL 14% 5% 10% 4% 9% 5% 20% 20% 20% 12% 25% 29% 16% 23% 23% 9% 31% 25% APC BPC Canpotex ICL Uralkali K+S SQM BPC Uralkali K+S Canpotex ICL Uralkali BPC Canpotex ICL APC Others
Positive Potash Spot Pricing trend
ICL UK: The World’s Only Producer of Polysulphate ▪ ▪ ▪ ▪ ▪ ▪
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
Building Leadership in Advanced Crop Nutrition Solutions Precision Business R&D Infrastructure Ag Development
ICL’s Leadership in the Specialty Fertilizers Market
ICL Specialty Fertilizers: Our Strengths ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Our Core Markets and Products Today
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