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16
Investor and Analyst Day Karl Mielke, CEO May 19, 2015
Transcript
Page 1: Investor and Analyst Dayiclgroupv2.s3.amazonaws.com/corporate/wp-content... · 1.4 1.4 2.6 2023 5.4 2014 2.9 Market USD bn 1 Other straights includes MAP/MKP, Calcium Nitrate, SOP

Investor and Analyst Day

Karl Mielke, CEO

May 19, 2015

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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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4

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”

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ICL Specialty Fertilizers Worldwide

5

$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)

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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%

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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

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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

1

REGULATORY & SUPPORT

2

3

13

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

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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

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Thank you

Changed format to be consistent with other presentations


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