IFA Crossroad Asia-Pacific Disclaimer

Transcription

1 Disclaimer This presentation was prepared by ICL Fertilizers for the benefit and internal use of analysts visit to DSW. In providing this presentation ICL Fertilizers has relied upon information that is publicly available. All projections, operating and financial forecasts, are subject to change. ICL Fertilizers does not assume any responsibility for independent verification of any of the information contained herein including, but not limited to, any forecasts or projections set forth herein. In addition, ICL Fertilizers assumes no obligation to update or to correct any inaccuracies which may become apparent in this presentation and the analyses contained herein are not and do not purport to be appraisals of the assets, stock or business of ICL. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by ICL Fertilizers. Nothing contained herein shall be deemed to be a recommendation from ICL Fertilizers to any party, including without limitation, any security holder of ICL to enter into any transaction or to take any course of action. Neither this presentation nor any of its contents may be summarized, excerpted from, disclosed publicly, or made available to any third parties or used for any other purpose without the prior written consent of ICL Fertilizers. dike_-.

2 About ICL: Integrated Portfolio Across Segments From Basic Materials to Downstream Products Potash, Phosphate Rock, Phosphoric Acid, Phosphate Fertilizers, Compound Fertilizers, Specialty Fertilizers, Feed Additives, Salts Other % ICL Industrial Products % ICL Performance Products % Potash % Fertilizers & Phosphates % Elemental Bromine, Bromine & Organophosphorus FRs, Various Bromine Compounds, Chlorine-based Biocides, Magnesia Products Specialty Phosphates: Technical, Food Grade & Electronic Grade Phosphoric Acid, Phosphate Salts, Food Additives, Hygiene Products, Wildfire Safety Products, Water Treatment Chemicals and Services Pure Magnesium, Magnesium Alloys; Water Desalination Solutions (via IDE, 0% JV) Note: % based on 00 sales About ICL: Access to Vast, Low Cost Natural Resources The Dead Sea (Israel) Potash Polyhalite Bromine Magnesium Salts Iberpotash (Spain) & CPL (England) Peat Mining Sites (England) Phosphates Peat Bogs The Negev Desert (Israel) dike_-.

3 About ICL: Strong Global Presence & Logistical Advantages Sales by Geography (00 ( North America % Europe % Mexico ROW % Israel % Asia 0% South America % Manufacturing plant Logistic center Sales offices Headquarter About ICL: Leading Player in Global Industries # in elemental bromine ~0% of global production capacity # in organophosphorus flame retardants # producer of pure phosphoric acid # in specialty phosphates # in wildfire safety products # producer of PK fertilizers(compound potash & phosphate fertilizers) # Europe and # Worldwide in potash supply # Western world magnesium production, and... Major player in specialty fertilizers & specialty chemical niche markets dike_-.

4 About ICL Fertilizers: A Variety of Commodity & Specialty Fertilizers Fertilizers & Phospates % Potash % About ICL Fertilizers: Potash Market Share* Increasing in the Fast Growing Emerging Markets India (total Mt) Brazil (total.mt) China (total.mt) APC % K & S % SQM % Uralkali+ Belaruskali 9% PCS SQM Mosaic % % % Uralkali +Belaruskali % K+S % APC % SQM % Canpotex 9% K+S % Canpotex % Uralkali + Silvinit % ICL 0% Silvinit % Canpotex % Silvinit % ICL % ICL % Belaruskali % * Out * Out of imports of imports in in 00, million in million metric tons metric (Mt) tons (MT) Sources: China Fertilizer Weekly Market Report, Sindicaro Da Industria DE Adubose Corretivos Agricolas No Estado De Sao Paulo, Company estimates dike_-.

5 About ICL Fertilizers: Acquisition Activities March-April 0 SCOTTS GLOBAL PRO Acquisition of a global specialty fertilizers leader FUENTES (Spain) Acquisition of the # specialty fertilizers company in Spain IBERPOTASH (Spain) Rationalization and expansion plan CLEVLAND POTASH (UK) Initiating Polyhalite activities 9 All Basic Drivers Are in Place to Support Long-Term Growth in Fertilizers Population Growth Income Growth Biofuels Limited Arable Land More Grains Required Urgent Need to Increase Yields Solution = Increased and More Balanced Use of Fertilizers 0 dike_-.

6 Billion Tonnes Population Growth & Declining Per-Capita Arable Land Requires more Intensive Agriculture Food demand per land area unit is steadily increasing Source: FAO, Food and Agriculture Organization of the United Nations Low Levels of World Grain Stocks & Stock-to-Use Ratio Signal a Need for More Crops & Fertilizers,,,, Consumption Production Stock to Use % % % 0%,0,9,,,,, % % % % 0% 0.% % % Grains Pulses: Barley, Corn, Millet, Mixed Grain, Oats, Rice, Rye, Sorghum, Wheat Source: USDA, (Update Oct, 0) dike_-.

7 Relative to 9 Relative to 9 GDP Growth GDP Growth in main Potash Consuming Countries in the Region is Projected to Remain High % % (e) 0(f) 0(f) 0% % % % % 0% -% China India Indonesia Malaysia Vietnam World Source: World Bank ( accessed: Sept. 0) Population, Meat and Fertilizers [Base 9] 0 9 China Meat Base 9 Population Normalized Fert. Normalized 0 9 India Meat Base 9 Population Normalized Fert. Normalized Source: USDA, IFA, U.S. Census Bureau dike_-.

8 High Farm Commodity Prices Leading to Higher Fertilizer Prices Corn Soybean CHICAGO BOARD OF TRADE (CBOT) CROP PRICES cents/bushel Wheat Rice Prices of all Commodities Have Increased Significantly over the past Few Years Cotton, Coffe,0 Corm Palm Oil Meat, beef Sugar Soybeans,,,,, Rice, Thailand, % 0,9 Source: World Bank (Sept. 0) - 0,,0,,0,,0,,0 March 0 price over 009 average price level dike_-.

9 Million Tonne K O Global Potash Demand is Forecast to Continue to Grow % 0%,% % 0% %,%,%,%,%,9% 0% % 0% -% -0% base -,9% Source: IFA-Medium-Term Outlook for World Agriculture and Fertilizer Demand 00/ 0/ (June 0) Potash Demand in Asia & Pacific is Forecast to Grow at ~% per Year Oceania South Asia West Asia East Asia CAGR* 00- =.0% *CAGR: Compound Annual Growth Rate Source: IFA-Medium-Term Outlook for World Agriculture and Fertilizer Demand 00/ 0/ (June 0) 9 dike_-.

10 Imports Million Tonnes KCl Major Growth of Potash Consumption is Forecast in Asia-Pacific Region 0-0 Bangladesh % Malaysia % Thailand % Vietnam % Oceania % Other Asia Pacific % China PR % India % Total forecast growth ~. Mt KCl % of global growth (. Mt KCl) Source: FertEcon Potash Outlook 0- (Sept. 0) 9 Asia Pacific Potash Import Forecast India China PR Indonesia Malaysia Vietnam Others Asia Pacific Source: FertEcon Potash Outlook 0- (Sept. 0) 0 0 dike_-.

11 Million Tonne KCl Million Tonne Million Tonne KCl Base 00 =.0,,,,,0 0,9 0, China is Projected to Remain Dependent on Potash Imports for the Foreseeable Future China Crops Production Growth Forecast Coarse Grains Meat Sugar Fruits & Veg., Rice, Sugar Crops and Wheat consume ~% of potash in China. Demand for food is projected to increase rapidly fueled mainly by Income growth. Meat, coarse grains and sugar production is projected to grow Source: OECD-FAO Agricultural Outlook 0-00 China Potash Import Potash Use By Crop Rice % Fruits & Veg. 0% Sugar Crops % Wheat % Others % Source: FertEcon Source: IFA Fertilizer Use By Crop India is Projected to Remain Dependent on Potash Imports for the Foreseeable Future India Main Crops Forecast Sugar Coarse grains Rice Wheat Rice, Fruits & Veg., Sugar Crops and Wheat consume ~% of potash in India. 00 millions are considered malnourished. Demand for food is projected to increase rapidly fueled by population growth and Income improvement. Crop yields are generally low. Improvement should be achieved by more intensive and balanced fertilization. 9 - Source: OECD-FAO Agricultural Outlook 0-00 India Potash Import Fruits & Veg. % Potash Use By Crop Sugar Crops 0% Rice % Wheat % Others % )Source: FAPRI-U.S. and World Agricultural Outlook (Jan 00 Source: IFA Fertilizer Use By Crop dike_-.

12 Million Tonne KCl Million Tonne Malaysia is Projected to Remain Dependent on Potash Imports for the Foreseeable Future 0 0,,9,,,, 0,9 Malaysia Palm Oil Production Forecast Source: OECD-FAO Agricultural Outlook 0-00 Malaysia Potash Import Oil Palm consume ~% of potash in Malaysia. Malaysia is fully dependant of potash import The country is running out of arable land, hence more intensive agriculture will be required. Potash Use By Crop Others % Rice % Oil Palm % Fruits & Veg. % Source: FAPRI-U.S. and World Agricultural Outlook (Jan 00) Source: IFA Fertilizer Use By Crop dike_-.