Investor and Analyst Day
Karl Mielke, CEO
May 19, 2015
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, 2015. 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.
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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
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Specialties
Light
Specialties
Commodities
• Added value
• Higher prices
• Smaller volumes
• Selective distribution
Specialty Fertilizers vs. Commodities
CRF (Controlled Release Fertilizers)
WSNPK (Water Soluble Fertilizers)
NOP (Potassium Nitrate)
CN (Calcium Nitrate)
Soluble (MAP/MKP)
“Special NPK”
ICL Specialty Fertilizers Worldwide
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$800M business for ICL 100 countries
20 offices around globe 960 employees
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ICL Specialty Fertilizers Development
3.2011
2010
Acquisition of Scotts' Global Pro - Everris
Acquisition of Fuentes
(Spain)
4.2011
5.2012
9.2012
11.2012
Acquisition of Xcalibur
(USA)
Acquisition of YARA’s 50% of
NU3 NV (Belgium)
Acquisition of
Agrocallejas (Spain)
Production & distribution of liquids & solubles
9.2014
Acquisition of Amega Sciences
(UK)
Australia trial - 2014
• 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)
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AmegA Sciences – the Soil Conditioner Example
Untreated Treated with soil conditioner
Couple of edits to the text to make it clearer
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Overview ICL Specialty Fertilizers 2014: Sectors
Turf & Amenity Sportsfields, Golf and Landscape.
Specialty Agriculture Specialty Inputs for food crops
Ornamental Horticulture (OH) Container Nursery & Greenhouse
60%
21%
82
Sales by Market
60%
Others – Trading / Chemicals
60%
21%
8.5%
10.5%
Our Advantages
Supply chain
Production process-technology adding
value
Market position R&D Innovate the next generation
• Controlled release fertilizers • Fertigation and foliar solubles • Enhanced nutrients and water efficiency
• Back integrated • Access to high quality raw material • Efficient supply chain (high synergies)
• Highly professional Agronomic Sales team • Integrated and tailored service • Full product portfolio • Distributor loyalty • Strong Branding
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Strategy to Deliver High Growth Rates
4-6 % CAGR
1-2 % Market Growth
Ornamental Horticulture
6-8 % CAGR
0 % Market Growth Professional Turf
>10% CAGR
5-6 % Market Growth Specialty
Agriculture
1-3 % CAGR
1 % Market Growth
Chemicals
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The Path for Faster than the Market Growth
0.7 1.4
0.8
1.4 1.4
2.6
2023
5.4
2014
2.9
Market USD bn
1 Other straights includes MAP/MKP, Calcium Nitrate, SOP
ws NPK
NOP
Other Straights1
9%
SOLUBLES
2023
5.4
2014
3.5
5%
FOLIAR LIQUIDS
2023
3.5
2014
0.9
16%
Controlled Release Fert.
ICL Specialty Fertilizers Growth Pillars
Establish production in
attractive markets
Enlarge Product Portfolio-
New Potassium Nitrate
production plant
Reduce cost of production
New production
plants with focus on
emerging markets
Grow with R&D
and new Strategic
Partners
New cost efficient
coating generation
Market USD bn
Market USD bn
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Growing Our Specialty Agriculture Business
Spec. Agriculture Controlled Release Fertilizer in Emerging Markets
Product Development and more trial data
Product Development & Technology
New production facilities
More feet on the ground
Focus on tropical crops
Investment in innovation
Enhance Innovation & Product Development
Next generation coating technology Unique fertigation and foliar solutions Enhanced nutrient & water efficiency technologies
INNOVATION
PRODUCT DEVELOPMENT & TECHNOLOGY
Proof of Performance with Authorities and Customers Open Innovation / Scouting for new ideas
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REGULATORY & SUPPORT
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3
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Speed up “from project to market”
~ $ 15M investment/yr. in R&D and Product
Development
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Produt Development Trials US$/acre Current practice CRF
Fertilizer volume (lbs N/acre) 60 40
Fertilizer costs 103 103
Application costs 43 20
Yield value 1,188 1,284
Net value1 1,042 1,160
(2 less)
(1/3 less)
(+11%)
Sugar production in Florida
+ 11 % income
2 fewer applications
33% less N
Adoption time 2-5 years
Has to taste fertilizer to check quality!
Proof of Performance and Market Education
Proof of performance
Market education: new technologies adoption
• Field Biology
• Product Evaluation
• Product development
• Trials
• Grower/Food industry
• Projects
Geographical Expansion
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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
Strategic alliance with YTH
Thank you
Changed format to be consistent with other presentations