Transcript Harnessing Nature Creating Value

Essential Minerals for Life
TASE London Conference
London, June 13, 2013
Important Legal Notes
The information delivered or to be delivered to you does not constitute an offer or a recommendation to do any
transaction in Israel Chemicals Ltd. (ICL) securities. Although our shares may be bought and sold on the Tel Aviv Stock
Exchange (TASE) at any trading time, they do not trade out of Israel - neither in the United States, nor EU ,nor elsewhere
and this presentation does not constitute an offer or investment advice to any US or other person at this time. If we ever
do so, our offer will only be made by a prospectus or a registration statement conforming with all requirements of U.S.,
EU or any other applicable law.
Certain statements in this presentation and other oral and written statements made by ICL from time to time, are forwardlooking statements, including, but not limited to, those that discuss strategies, goals, outlook or other non-historical
matters; or project revenues, income, returns or other financial measures. These forward-looking statements are subject
to risks and uncertainties that may cause actual results to differ materially from those contained in the statements,
including, among others, the following: (a) Crisis in financial markets;(b) War or terror operations;(c) Impacts on sales of
fertilizers (product prices, government policies and weather); (d) Subjection to legislative and licensing restrictions;(e)
Exposure relating to environmental protection and safety;(f) Third party liability and product liability; (g) Volatility in the
markets that affects the demand for some of the products; (h) Concessions and permits; (i) Natural disasters; (j) Water
level in Pond 150 in Dead Sea;(k) Dependence on seaports, transportation and loading in Israel. We caution you that the
above list of important factors is not comprehensive. We refer you to filings that we have made and shall make with the
TASE. They may discuss new or different factors that may cause actual results to differ materially from this information.
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.
Readers and viewers are cautioned to consider these risks and uncertainties and to not place undue reliance on such
information.
P. 2
A Global Player
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A global manufacturer of fertilizers & specialty chemicals,
headquartered in Israel with worldwide operations
2012 revenues: US$ 6.6 bn; Net Income: US$ 1.3 bn
About 46% of production & 95% of sales outside of Israel
12,280 employees as of December 2012
ICL industrial
Products
21%
Other
5%
ICL Performance
Products
21%
POT
14%
Public
34%
Israel Corp
(ILCO)
52%
ICL
Shareholders
* LTM
** As of June 5, 2013
P. 3
Potash
29%
Fertilizers &
Phosphates
24%
ICL’s Sales by
Segments
(2012)
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Trading: Tel-Aviv Stock Exchange (TASE: ICL), most active stock*
Market cap**: about $14.3 bn
Dividend yield: 2012- 6.4%; Decade average: 5.2%
An Essential Needs Company Addressing Core
Necessities in Agriculture, Food, Materials & Energy
Dynamic global changes
Affecting ICL’s
core businesses
Maintaining our leading position and becoming a major
player in new markets with focus on 4 core fields
Globalization &
rapid population growth
Economic growth is
shifting to developing
markets
Global warming
Stricter regulatory
environment
Growing ecological &
health awareness
P. 4
Shortages
of food,
clean
water,
energy &
basic
materials
Agriculture
Food
ICL
Materials
Energy
Initiating Major Projects to Carry On Our Record
of Growth and Success
Strategy
Project
Key Value
Drivers Project
ICL
Harmonization
Project
P. 5
Talent and
Leadership
Development
Appendices:
Financial
Information
Strong Financial Position Enables ICL to Take Advantage of Business Opportunities
P. 6
Q1 2013: Improvement in All Parameters
Compared to Both Q1 12 & Q4 12
$ millions
Q1 13
Q1 12
% change
Vs. Q1 12
Q4 12*
% change
VS. Q4 12
1,640.4
1,499.3
9.4%
1,302.9
25.9%
Gross profit
659.0
598.3
10.1%
501.0
31.5%
Gross margin
40.2%
39.9%
Operating income
363.0
342.9
Operating margin
22.1%
22.9%
Sales (CIF)
Net income
305.3
to the Company’s shareholders
* Application of 2 IFRS new accounting standards
P. 7
289.3
38.5%
5.9%
190.2
90.9%
14.6%
5.6%
207.9
46.8%
Q1 2013: Bridge Analysis
Sales
203
1,499
9
Operating Profit
73
111
1,640
343
P. 8
72
19
363
Strong Returns
52.0%
ROE
53.1%
31.2%
22.4%
12.9%
19.1%
19.4%
52.0%
10.9% 8.1% 10.4% 10.5%
19.1%
40.4% 39.7%
38.0%
33.5%
19.4% 21.4%
25.8% 25.0%
14.4% 12.9%
ROIC
9.6%
5.5% 4.2% 5.5% 5.3%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*
2000-2006 figures are based on Israeli GAAP, 2007-2013 are based on IFRS
Data for 2012-2013 reflect the application of 2 new IFRS accounting standards
ROE (Return on equity) = net income / shareholders' equity, average
ROIC (Return on invested capital ) = (operating income ×(1-0.20)) / ((trade receivables + inventory – trade payables) + PP&E, net), average
* LTM
P. 9
Financial Liabilities* Reflect Acquisitions,
Higher Capex & Dividend Payments
$ millions (end of period)
2000-2006 figures are based on Israeli GAAP, 2007-2013 are based on IFRS
1,460
1,440
1,350
1,314
1339 1,379
1,240
1,112
1,087
785 825
857
771
658
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
* Net financial liabilities = credit from banks and other interest bearing debt, minus cash and cash
equivalents, investments and short-term deposits, long term financial investments and income-tax deposits.
Net debt reclassified - IDE’s financial assets is excluded
P. 10
Q1
2013
More than a Decade of High Dividend Yields
Year
Dividend Yield*
2001
4.0%
2002
4.8%
2003
4.5%
2004
4.5%
2005
3.6%
2006
6.4%
2013 Dividend Payments
2007
3.5%
Q1: $213 million announced on May 13, 2013
2008
5.9%
2009
3.9%
2010
7.0%
2011
5.9%
2012
6.4%
Dividend policy:
Up to 70% of net
income in quarterly
payments
• Calculated according to market capitalization based on average share price adjusted for dividends. Dividends attributed to profits of that year.
P. 11
ICL:
Committed to Responsible Value Creation
Thank you
www.icl-group.com
P. 12