INVESTOR PRESENTATION. January 2019
|
|
- Hester Hicks
- 5 years ago
- Views:
Transcription
1 INVESTOR PRESENTATION January 2019
2 IMPORTANT LEGAL NOTES
3 ICL- AT A GLANCE $5.4B 49 ~11,000 TOP 3 $7.2B <3% BBB- #2
4 ICL- 90 YEARS OF HISTORY Establishing & growing operations in Israel 1920s s Consolidating & expanding globally 1970s Focusing on innovation and solidifying leadership 2000s -
5 LEADING GLOBAL COMPANY 22% 35%* 3% 25% 1% 12% 2% Production site Sales & marketing office * Percentage of sales by main geographical areas, 2017
6 ICL STRATEGIC ADVANTAGES UNIQUE ASSETS STRATEGIC LOCATIONS KNOW-HOW STARTUP NATION proximity to ports & customers accumulated over decades innovation
7 DNA OF LEADERSHIP #1 #3 #1 #1 #1 #1
8 CORE VALUES LEVERAGING TECHNOLOGY AND INDUSTRIAL KNOW HOW TO MEET THE NEEDS OF OUR CUSTOMERS ADOPTING BEST PRACTICES FOR CORPORATE GOVERMANCE TOP TIER SAFETY PERFORMANCE AND ENVIROMENTAL RESPONSIBILITY EMPLOYER OF CHOICE
9 SUSTAINABILITY $115M #2 99% SILVER RANKING 89% TfS
10 LEADERSHIP STRATEGY PRESENT POTASH IAS
11 LEADERSHIP STRATEGY PRESENT Phosphate Solutions division essential ingredients Industrial Products division IAS - Innovative Ag Solutions division IAS Potash division POTASH
12 ICL BUSINESS LEADERSHIP Market Share Specialty Phosphates Europe, NA, and LatAm 1 Global Bromine Production Capacity 1 Others 11% Chinese producers 11% USA (ALB, LXS) 23% Albemarle (Dead Sea) 16% ICL (Dead Sea) 40% ICL 24% Potash Business Costs by Site and by Company 2 IAS ICL Dead Sea POTASH
13 ORGANIZATIONAL STRUCTURE ALIGNED WITH STRATEGY Phosphate Solutions division 1 IAS - Innovative Ag Solutions division 1 Industrial Products division 1 Potash division 1 POTASH IAS
14 LEADERSHIP STRATEGY FUTURE POTASH
15 LEADERSHIP STRATEGY POTASH
16 INDUSTRIAL PRODUCTS
17 INDUSTRIAL PRODUCTS SOLID LEADERSHIP THE GLOBAL BROMINE MARKET LEADER UNIQUE ADVANTAGE BROMINE PRICES IN CHINA 180K TONNES NO.1 5,100 4,600 4,100 3,600 3, K TONNES 2,600 NO.1
18 INDUSTRIAL PRODUCTS MAIN GOALS A WORLD LEADER AND BEYOND
19 LEADERSHIP STRATEGY POTASH
20 POTASH INCREASE YIELDS AND FEED THE WORLD
21 POTASH E 2038E 2049E World population (Bn) Arable land (Ha/Person) 0.16 World Crop Production in Expansion of Arable Land Crop Rotation Increase in Yields World Crop Production in 2050
22 POTASH ICL S UNIQUE POSITION STRONG POSITION 4.8 MILLION TONNES WELL ESTABLISHED IN GROWING MARKETS LOWER COST AND FASTER TIME-TO-MARKET 80% PRODUCED FROM THE DEAD SEA NO.6
23 POTASH ICL S UNIQUE POSITION STRONG POSITION 4.8 MILLION TONNES WELL ESTABLISHED IN GROWING MARKETS LOWER COST AND FASTER TIME-TO-MARKET Europe 80% PRODUCED FROM THE DEAD SEA US Brazil IL India China NO.6
24 POTASH OUR GOALS TOP-3 5MT 10% 1M
25 LEADERSHIP STRATEGY POTASH
26 PHOSPHATE SOLUTIONS - FOOD ESSENTIAL MINERALS BITE TASTE & MOUTH FEEL TEXTURE & LAST LONGER RISE
27 PHOSPHATE SOLUTIONS - INDUSTRIAL Oil drilling Oral care Metals Mining Cleaning products Leather Construction Paints & coatings Asphalt Water treatment
28 PHOSPHATE SOLUTIONS ICL S RECIPE FOR LEADERSHIP UNIQUE BACKWARD INTEGRATION MODEL ~4,900K TONNES WITH A LEADING MARKET POSITION Market Share Specialty Phosphates Europe, NA, and LatAm 1 AND VALUABLE INNOVATIVE PRODUCTS ~90% of phosphate rock ICL 24% 1,150K TONNES 280K TONNES Source: ICL estimates (2017)
29 PHOSPHATE SOLUTIONS OUR GOALS
30 LEADERSHIP STRATEGY POTASH
31 INNOVATIVE AG SOLUTIONS CREATING LEADERSHIP SPECIALTY FERTILIZERS - THE FOUNDATION FOR THE FUTURE ~850K TONNES FAST GROWING INDUSTRY DIVERSIFIED PORTFOLIO Coated Fertilizers Solubles / Straights Liquids OVER SRF CRF Solubl e NPK MA P/ MKP SOP/CN NOP Bulk Liquids Foliar Liquids ICL-SF ^ ^ ^ ^ ^ ^ Compo ^ ^ ^ ^ 25 YEARS Haifa ^ ^ ^ ^ Y ARA ^ ^ ^ SQM ^ ^ ^ ^ Kingenta ^ ^ ^ ^ FASTEST GROWING
32 THE FARMING OF THE FUTURE: WITH INCREASING PRESSURE TO EXPAND PRODUCTION AND PROTECT OUR ENVIRONMENT, HIGH TECH FARMING TECHNOLOGIES WILL PLAY A CRUCIAL ROLE
33 IAS LEVERAGING ISRAEL'S HIGH-TECH AND AGRI-TECH ECO SYSTEM ACADEMIC TECHNOLOGICAL BUSINESS TARANIS
34 THE PERFECT STORM 2B MORE PEOPLE WITHIN 20 YEARS GROW MORE WITH LESS CHANGE GROUNDBREAKING SOLUTIONS
35 ICL AIMS TO OFFER FARMERS CUTTING-EDGE SOLUTIONS
36 INNOVATIVE AG SOLUTIONS PORTFOLIO GROWTH UNIQUE R&D CAPABILITIES GET CLOSER TO GROWER INNOVATION DIGITAL TRANSFORMATION
37 LEADERSHIP STRATEGY PRESENT&FUTURE POTASH
38 ICL IS ON THE VERGE OF A TIPPING POINT POSITIVE BUSINESS MOMENTUM IMPROVING MARKET CONDITIONS SHARE OVERHANG REMOVED GROWTH STRATEGY DEBT OPTIMIZATION ALIGNED ORGANIZATION
39 THANK YOU visit us at
40 Appendix
41 Financial Overview
42 Additional Data Regarding Aligned Divisions Sales FY 2015 Q Q Q Q FY 2016 Q Q Q Q FY 2017 Q Q Q Potash 1, , , Phosphate Solutions 2, , , Industrial Products (Bromine) 1, , , Innovative Ag Solutions 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 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 Q Q Q Q FY 2016 Q Q Q Q FY 2017 Q Q Q Potash Phosphate Solutions Industrial Products (Bromine) Innovative Ag Solutions G&A & other (349) (86) (91) (92) (84) (353) (64) (65) (64) (73) (266) (72) (60) (62) Sub-Total Divested businesses' contribution Total - adjusted operating income - ICL
43 Q 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 Q and 8 cents in Q Focus on cash flow generation Dividend distribution for Q3 increased by 20%
44 Q Results Summary Sales 1,371 1,371 1,440 (5)% Sales pro-forma (2) 1,362 1,371 1,280 7% Operating income reported % Operating income adjusted (1) (7)% Operating income Adj. (1) Proforma (2) % Net income reported % Net income adjusted (1) % Net income Adj. (1) Pro-forma (2) % Operating cash flow % Net debt 2,267 2,205 3,264 (32)%
45 Effective Tax Rate $ millions Q3 18 FY2017 Adjusted income before tax (1) Normalized tax rate (including resource tax) 23% 25% Normalized tax expenses Carryforward losses not recorded for tax purposes 4 19 Sub-Total Sub-Total - % 26% 29% Other items (mainly exchange rate impact) 1 1 Adjusted income tax Actual Effective tax rate 26% 30%
46 Reconciliation Tables Calculation of Adjusted income before tax ($ millions) Q3 18 FY2017 Adjusted operating income Finance expenses (23) (124) Share in earnings (losses) of equity-accounted investees and adjustments to financial expenses 2 - Adjusted income before tax Calculation of Pro-forma Adjusted operating income ($ millions) Q3 18 Q3 17 Operating income Adjustments (1) 4 35 Adjusted operating income Divested businesses profit - (75) Pro-forma Adjusted operating income Calculation of Pro-forma Adjusted net income ($ millions) Q3 18 Q3 17 Net income Adjustments (1) 5 31 Divested businesses operating income - (75) Allocated tax and finance expenses for divested businesses - 30 Pro-forma Adjusted net income
47 Successful Optimization of Debt Structure Loans & debentures Securitization
48 Decreasing Net Debt/EBITDA Ratio Sep 30, 2018
49 Industrial Products
50 ICL-IP Product Supply Chains
51 Global Trends and Major End Markets ELECTRONICS INTERMEDIATES FOR FOOD, PHARMA, AGRO and Other CONSTRUCTION OIL & GAS WATER TREATMENT TRANSPORTATION FURNITURE & TEXTILE POWER PLANTS
52 Major Trends and ICL Solutions Trends ICL s Solutions
53 Potash
54 Total Fertilizer Use by Crop at Global Level Source: IFA- Assessment of Fertilizer Use by Crop at the Global Level
55 World Main Crops Long Term Forecast Consumption, Stock and Stock to Use Ratio Source: OECD-FAO Agricultural Outlook (Jul 2017)
56 World Grains Production & Consumption: Current Stock to Use Ratio Sources: USDA (updated Nov. 2018)
57 ICL s Potash Market Share in Fast Growing Markets India Brazil China 18% 13% 12% 29% 7% 26% 22% 22% 6% 17% 17% Canpotex Uralkali APC Canpotex Uralkali SQM Russia Belarus Canada Jordan ICL 20% 16% 4% 10% 25% 25% 14% 29% 9% 5% 20% 23% 12% 9% 5% 31% 20% 23% APC BPC Canpotex ICL Uralkali K+S Sources: ANDA, Chinese Customs, Fertilizer Association of India SQM BPC Uralkali K+S Canpotex ICL Uralkali BPC Canpotex ICL APC Others
58 Positive Potash Spot Pricing trend ICL S AVG. FOB POTASH PRICE DEVELOPMENT
59 ICL UK: The World s Only Producer of Polysulphate
60 Phosphate Solutions
61 Phosphate Solutions: Backward Integrated Value Chain
62 Phosphoric Acid Pricing Trends %
63 We Have Built a World-Class Advanced Additives Portfolio
64 Vast Product Portfolio Serving a Variety of End Food Additives Markets Development of customer solutions to improve texture and stability, as well as innovations for low-sodium salts and meatless applications Continued development of applications to optimize the leaving and texture in bakery products
65 Food Specialties: Markets and Competition
66 Innovative Ag Solutions
67 Building Leadership in Advanced Crop Nutrition Solutions R&D Infrastructure Precision Ag Business Development
68 ICL s Leadership in the Specialty Fertilizers Market
69 ICL Specialty Fertilizers: Our Strengths
70 Our Core Markets and Products Today
71 Specialty Fertilizers and Bio Solutions Have Became An Important Part of the Ag Input ~$150bn 1 Calcium, Magnesium and Sulfate 2 iron, cobalt, chromium, copper, iodine, manganese, selenium, zinc and molybdenum
72 Leveraging Precision Ag to Grow Sales a