Investor and Analyst Day

Transcription

1 Investor and Analyst Day Karl Mielke, CEO May 19, 2015

2 Safe Harbor All statements in this communication, other than those relating to historical facts, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended These forward-looking statements and projections are not guarantees of future performance and are subject to a number of assumptions, risks, projections and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements or projections. Important factors that could cause actual results to differ materially from our expectations include, among others: loss or impairment of business licenses or mining permits or concessions; natural disasters; failure to raise the water level in evaporation Pond 5 in the Dead Sea; accidents or disruptions at our seaport shipping facilities or regulatory restrictions affecting our ability to export our products overseas; labor disputes, slowdowns and strikes involving our employees; currency rate fluctuations; rising interest rates; general market, political or economic conditions in the countries in which we operate; pension and health insurance liabilities; price increases or shortages with respect to our principal raw materials; volatility of supply and demand and the impact of competition; changes to laws or regulations (including environmental protection and safety and tax laws or regulations), or the application or interpretation of such laws or regulations; government examinations or investigations; the difference between actual reserves and our reserve estimates; failure to integrate or realize expected benefits from acquisitions and joint ventures; volatility or crises in the financial markets; cyclicality of our businesses; changes in demand for our fertilizer products due to a decline in agricultural product prices, lack of available credit, weather conditions, government policies or other factors beyond our control; decreases in demand for bromine-based products and other industrial products; litigation, arbitration and regulatory proceedings; and war or acts of terror. More detailed information about factors that may affect our performance may be found in Risk Factors in our Annual Report Form 20-F filed with the U.S. Securities and Exchange Commission on March 20, Forward-looking statements and projections represent our views and are given only as of the date of this communication and we disclaim any obligation to update or revise them, whether as a result of new information, future events or otherwise, except as required by law. All information included in this document speaks only as of the date on which they are made, and we do not undertake any obligation to update such information afterwards. Some of the market and industry information is based on independent industry publications or other publicly available information, while other information is based on internal studies. Although we believe that these independent sources and our internal data are reliable as of their respective dates, the information contained in them has not been independently verified and we can not assure you as to the accuracy or completeness of this information. 2

3 What are Specialty Fertilizers? Concentrated fertilizers with high efficiency used to: Enhance yields Improve crop quality Save water Protect the environment Main benefits: Integrate fertilizers with drip irrigation or foliar Control consumption in open fields, nurseries and lawns Optimize mix of major and minor elements and trace elements Optimize plant performance Usually tailored to specific needs of end-users 3

4 Specialty Fertilizers vs. Commodities CRF (Controlled Release Fertilizers) WSNPK (Water Soluble Fertilizers) NOP (Potassium Nitrate) CN (Calcium Nitrate) Soluble (MAP/MKP) Special NPK Specialties Light Specialties Added value Higher prices Smaller volumes Selective distribution Commodities 4

5 ICL Specialty Fertilizers Worldwide $800M business for ICL 100 countries 20 offices around globe 960 employees 5

6 ICL Specialty Fertilizers Development Production & distribution of liquids & solubles 2010 Acquisition of Fuentes (Spain) Acquisition of Agrocallejas (Spain) Acquisition of Amega Sciences (UK) Acquisition of Scotts' Global Pro - Everris Acquisition of Xcalibur (USA) Acquisition of YARA s 50% of NU3 NV (Belgium) 6

7 AmegA Sciences the Soil Conditioner Example Australia trial Hydrophobic soils like non-wetting sands Extensive areas affected (est. 5 million ha), mainly in lower value sandy cropping soils (cereal yields 1-2 t/ha) Untreated Treated with soil conditioner 7

8 Overview ICL Specialty Fertilizers 2014: Sectors Sales by Market 82 Specialty Agriculture Specialty Inputs for food crops 60% 60% 21% 60% Ornamental Horticulture (OH) Container Nursery & Greenhouse 21% 8.5% 10.5% Turf & Amenity Sportsfields, Golf and Landscape. Others Trading / Chemicals 8

9 Our Advantages Supply chain Production process-technology adding value Back integrated Access to high quality raw material Efficient supply chain (high synergies) Market position Highly professional Agronomic Sales team Integrated and tailored service Full product portfolio Distributor loyalty Strong Branding R&D Innovate the next generation Controlled release fertilizers Fertigation and foliar solubles Enhanced nutrients and water efficiency 9

10 Strategy to Deliver High Growth Rates Specialty Agriculture 5-6 % Market Growth >10% CAGR Ornamental Horticulture 1-2 % Market Growth 4-6 % CAGR Professional Turf 0 % Market Growth 6-8 % CAGR Chemicals 1 % Market Growth 1-3 % CAGR 10

11 The Path for Faster than the Market Growth Market USD bn Other Straights 1 NOP ws NPK SOLUBLES % Controlled Release Fert. Market USD bn % ICL Specialty Fertilizers Growth Pillars Market USD bn FOLIAR LIQUIDS % Reduce cost of production Enlarge Product Portfolio- New Potassium Nitrate production plant Establish production in attractive markets New cost efficient coating generation New production plants with focus on emerging markets Grow with R&D and new Strategic Partners 1 Other straights includes MAP/MKP, Calcium Nitrate, SOP 11

12 Growing Our Specialty Agriculture Business Spec. Agriculture Controlled Release Fertilizer in Emerging Markets Investment in innovation Focus on tropical crops More feet on the ground New production facilities Product Development & Technology Product Development and more trial data 12

13 Enhance Innovation & Product Development ~ $ 15M investment/yr. in R&D and Product Development INNOVATION Next generation coating technology Unique fertigation and foliar solutions Enhanced nutrient & water efficiency technologies PRODUCT DEVELOPMENT & TECHNOLOGY Proof of Performance with Authorities and Customers Open Innovation / Scouting for new ideas REGULATORY & SUPPORT Speed up from project to market 13

14 Proof of Performance and Market Education Proof of performance Field Biology Product Evaluation Product development Produt Development Trials + 11 % income 2 fewer applications Sugar production in Florida Trials US$/acre Current practice CRF Grower/Food industry Projects 33% less N Fertilizer volume (lbs N/acre) Fertilizer costs Application costs Adoption time 2-5 years Yield value 1,188 1,284 (1/3 less) Net value 1 1,042 1,160 (2 less) (+11%) Market education: new technologies adoption Has to taste fertilizer to check quality! 14

15 Geographical Expansion Strategic alliance with YTH Production moves closer to Emerging Markets High logistic synergies Improve Yield & Quality Innovative technology Market education Worldwide Agronomist team Focus on Plants needs Knowledge and experience in the market 15

16 Thank you