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ICL(ICL) - 2023 Q4 - Annual Report
2024-03-14 10:04
Key Information [Selected Financial Data](index=11&type=section&id=A.%20SELECTED%20FINANCIAL%20DATA) In **2023**, the company's financial performance saw sales decrease by **24.7%** to **$7,536 million** and net income attributable to shareholders dropping by **70%** to **$647 million** Selected Financial Data (2021-2023) | Indicator | 2023 (US$ millions) | 2022 (US$ millions) | 2021 (US$ millions) | | :--- | :--- | :--- | :--- | | **Income Statement Data** | | | | | Sales | 7,536 | 10,015 | 6,955 | | Gross profit | 2,671 | 5,032 | 2,611 | | Operating income | 1,141 | 3,516 | 1,210 | | Net income attributable to shareholders | 647 | 2,159 | 783 | | Diluted earnings per share (in dollars) | 0.50 | 1.67 | 0.60 | | **Financial Position Data** | | | | | Total assets | 11,627 | 11,750 | 11,080 | | Total liabilities | 5,590 | 6,037 | 6,344 | | Total equity | 6,037 | 5,713 | 4,736 | Reconciliation of Operating and Net Income (Non-GAAP) | Indicator | 2023 (US$ millions) | 2022 (US$ millions) | 2021 (US$ millions) | | :--- | :--- | :--- | :--- | | **Operating income** | **1,141** | **3,516** | **1,210** | | Adjustments | 77 | (7) | (16) | | **Adjusted operating income** | **1,218** | **3,509** | **1,194** | | **Net income attributable to shareholders** | **647** | **2,159** | **783** | | Total adjustments to operating income | 77 | (7) | (16) | | Total tax adjustments | (9) | 198 | 57 | | **Total adjusted net income** | **715** | **2,350** | **824** | - Adjustments in **2023** included a **$16 million** provision for early retirement, a **$49 million** write-off of assets related to restructuring, and a **$14 million** charge related to the security situation in Israel[39](index=39&type=chunk)[40](index=40&type=chunk) [Risk Factors](index=15&type=section&id=D.%20RISK%20FACTORS) The company faces a wide range of material risks that could adversely affect its business, financial condition, and results of operations, broadly categorized into business, industry, Israeli operations, and ordinary shares risks [Risks Related to Our Business](index=16&type=section&id=Risks%20Related%20to%20Our%20Business) The company's core business is subject to significant risks, primarily its dependence on government-granted concessions and permits for mineral extraction, environmental compliance, climate change impacts, and operational hazards - The company's mineral extraction operations are highly dependent on concessions and permits in various countries, with the key Dead Sea concession in Israel set to expire on March **31**, **2030**, with no assurance of renewal on the same terms[43](index=43&type=chunk)[45](index=45&type=chunk) - Future phosphate mining operations in Israel are contingent on securing approvals for new sites like the Barir field, as existing mines have limited reserves, and failure to obtain these approvals could significantly impact future mining reserves and business results[51](index=51&type=chunk)[52](index=52&type=chunk) - Climate change presents both physical risks, such as natural disasters and receding water levels at the Dead Sea, and transition risks, including carbon taxes (e.g., EU-ETS) and new regulations like the EU's Carbon Border Adjustment Mechanism (CBAM)[78](index=78&type=chunk)[80](index=80&type=chunk)[86](index=86&type=chunk) - The accumulation of salt in Pond **5** at the Dead Sea requires a regular, costly salt harvesting project to maintain production capacity and prevent structural damage to nearby infrastructure, with the success and cost of this "Permanent Solution" not guaranteed[95](index=95&type=chunk)[98](index=98&type=chunk)[100](index=100&type=chunk) - The company is exposed to cybersecurity risks, including attacks on its IT and OT systems, which could disrupt operations, compromise data, and lead to significant financial and legal liabilities, heightened by ongoing global conflicts[152](index=152&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) [Risks Related to Our Industry](index=38&type=section&id=Risks%20Related%20to%20Our%20Industry) The company operates in industries subject to factors beyond its control, with fertilizer sales tied to agricultural conditions and industrial/phosphate product sales affected by global economic conditions and end-market developments - Sales of fertilizer products are vulnerable to agricultural industry conditions, such as declining crop prices, lack of credit, adverse weather, and changes in government subsidy policies, which can reduce fertilizer demand[170](index=170&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) - Sales from the Industrial Products and Phosphate Solutions segments are influenced by global economic conditions, legislative changes, and specific end-market developments, including oil drilling, food industry regulations, and the aluminum and steel sectors for magnesium[175](index=175&type=chunk)[177](index=177&type=chunk)[179](index=179&type=chunk) - The company's operations are inherently exposed to hazards from chemical manufacturing and mining, such as explosions, spills, and mechanical failures, which can cause environmental damage, personal injury, and significant operational disruptions[184](index=184&type=chunk)[185](index=185&type=chunk) - Selling food ingredients and additives carries risks of product liability claims from contamination, spoilage, or food-borne illnesses, which could lead to costly recalls and damage the company's reputation and profitability[192](index=192&type=chunk)[194](index=194&type=chunk) [Risks Related to Our Operations in Israel](index=42&type=section&id=Risks%20Related%20to%20Our%20Operations%20in%20Israel%20and/or%20to%20the%20Company%20being%20an%20Israeli%20Company) Operating with headquarters and significant facilities in Israel exposes the company to unique geopolitical risks, including war, regional instability, personnel shortages due to military reserve service, and potential economic boycotts - The declaration of a state of war in Israel in October **2023** has created challenges including supply chain disruptions, personnel shortages due to reserve duty mobilization, and currency fluctuations, with regional tensions potentially leading to shipment delays and increased costs[197](index=197&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) - Political, economic, and military instability in Israel and the surrounding region, including conflicts with Hamas and Hezbollah and threats from Iran, could materially and adversely affect business operations and financial conditions[204](index=204&type=chunk)[205](index=205&type=chunk) - The obligation for many Israeli employees to perform military reserve service can disrupt operations, as approximately **15%** of ICL's employees in Israel were drafted for reserve duty during the **2023** war in Gaza[207](index=207&type=chunk) [Risks Related to Our Ordinary Shares](index=45&type=section&id=Risks%20Related%20to%20Our%20Ordinary%20Shares) Investors in ICL's ordinary shares face risks from the significant influence of its controlling shareholder, the Israeli government's veto power via a Special State Share, market price fluctuations, and potentially less investor protection as a foreign private issuer - As of December **31**, **2023**, Israel Corporation Ltd. is the controlling shareholder and can influence major decisions, including the composition of the Board of Directors, mergers, and dividend policy[214](index=214&type=chunk)[215](index=215&type=chunk) - The State of Israel holds a Special State Share, granting it veto power over transfers of certain assets and share acquisitions above specified thresholds (e.g., **14%** or **25%**), which may have an anti-takeover effect[217](index=217&type=chunk)[1363](index=1363&type=chunk) - As a foreign private issuer, ICL is exempt from certain SEC and NYSE requirements, such as the need for a majority-independent board and shareholder approval for certain equity compensation plans, which may result in less investor protection[225](index=225&type=chunk)[1461](index=1461&type=chunk)[1462](index=1462&type=chunk) - The company's dividend policy targets a payout of up to **50%** of annual adjusted net profit, but payments are not guaranteed and are at the discretion of the Board of Directors[223](index=223&type=chunk) Information on the Company [History and Development of the Company](index=49&type=section&id=A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) Established in **1968**, ICL was privatized in **1992**, listed on TASE and NYSE, with Israel Corp. as **43.15%** controlling shareholder - ICL was established in **1968** as a government-owned company, privatized in **1992** with a TASE listing, and listed on the NYSE in **2014**[231](index=231&type=chunk) - As of December **31**, **2023**, Israel Corporation Ltd. (Israel Corp.) is the controlling shareholder, holding approximately **43.15%** of outstanding ordinary shares[232](index=232&type=chunk) - Recent strategic moves include the **2021** acquisitions of Agro Fertiláqua and the South American Plant Nutrition business of Compass Minerals to strengthen its position in Brazil, and the **2024** acquisition of Nitro **1000**, a Brazilian biologicals company[236](index=236&type=chunk) [Business Overview](index=50&type=section&id=B.%20BUSINESS%20OVERVIEW) ICL is a leading global specialty minerals company focused on food, agriculture, and industrial markets, operating through four segments, leveraging unique mineral resources, and generated **$7.5 billion** in sales and **$1.1 billion** in operating income in **2023** - ICL operates through four main segments: Industrial Products (Bromine), Potash, Phosphate Solutions, and Growing Solutions, creating solutions for agriculture, food, and industrial markets[235](index=235&type=chunk) 2023 Financial Highlights | Metric | Value (US$ millions) | | :--- | :--- | | Total Sales | 7,536 | | Operating Income | 1,141 | | Adjusted Operating Income | 1,218 | | Net Income (attributable to shareholders) | 647 | 2023 Sales and Operating Profit by Segment | Segment | Sales (US$ millions) | Operating Profit (US$ millions) | | :--- | :--- | :--- | | Industrial Products | 1,227 | 220 | | Potash | 2,182 | 668 | | Phosphate Solutions | 2,483 | 329 | | Growing Solutions | 2,073 | 51 | - The company's strategy is to strengthen its leadership in agriculture, food, and industrial markets through innovation, M&A, and capitalizing on sustainability-driven opportunities like alternative proteins and energy storage solutions[291](index=291&type=chunk)[292](index=292&type=chunk)[293](index=293&type=chunk) [Industrial Products Segment](index=63&type=section&id=Industrial%20Products%20Segment) The Industrial Products segment, centered on the bromine value chain, saw sales of **$1,227 million** with an operating income of **$220 million** in **2023**, a significant decrease from **2022** due to softer demand Industrial Products Segment 2023 Performance | Metric | Value (US$ millions) | % Change vs 2022 | | :--- | :--- | :--- | | Sales | 1,227 | -31% | | Operating Income | 220 | -65% | - The segment's main products are flame retardants (bromine, phosphorus, magnesium-based) and industrial solutions (elemental bromine, clear brine fluids for oil & gas)[307](index=307&type=chunk)[308](index=308&type=chunk) - ICL is the world's largest producer of elemental bromine, with an annual production capacity of approximately **280 thousand tonnes**, and produced **143 thousand tonnes** in **2023**[314](index=314&type=chunk)[315](index=315&type=chunk) [Potash Segment](index=70&type=section&id=Potash%20Segment) The Potash segment, producing potash, salts, and magnesium, reported **$2,182 million** sales and **$668 million** operating income in **2023**, down sharply from **2022** due to a significant drop in global potash prices Potash Segment 2023 Performance | Metric | Value (US$ millions) | % Change vs 2022 | | :--- | :--- | :--- | | Sales | 2,182 | -34% | | Operating Income | 668 | -63% | - In **2023**, the segment produced approximately **4.4 million tonnes** of potash, with potential annual production capacity expected to be about **5 million tonnes** after the expansion in Spain is complete[340](index=340&type=chunk) - The company signed a new long-term potash supply agreement with Indian Potash Limited (IPL) for **2022-2027** and signed **2023** contracts with Chinese customers at a price of **$307** per tonne[356](index=356&type=chunk)[357](index=357&type=chunk) [Phosphate Solutions Segment](index=76&type=section&id=Phosphate%20Solutions%20Segment) The Phosphate Solutions segment, operating an integrated value chain, reported **$2,483 million** sales and **$329 million** operating income in **2023**, and is building the first large-scale LFP battery materials plant in the U.S Phosphate Solutions Segment 2023 Performance | Metric | Value (US$ millions) | % Change vs 2022 | | :--- | :--- | :--- | | Sales | 2,483 | -20% | | Operating Income | 329 | -58% | - The segment is building the first large-scale lithium iron phosphate (LFP) battery materials plant in the U.S., supported by a **$197 million** grant from the Department of Energy, to supply the energy storage and EV markets[393](index=393&type=chunk) - The segment's joint venture in China (YPH) has expanded its capacity to produce food-grade phosphoric acid and battery-grade MAP, positioning it as a key supplier to the LFP battery industry in China[390](index=390&type=chunk)[391](index=391&type=chunk) [Growing Solutions Segment](index=83&type=section&id=Growing%20Solutions%20Segment) The Growing Solutions segment, focused on specialty fertilizers, reported **$2,073 million** sales and **$51 million** operating income in **2023**, expanding its global presence and innovating with sustainable products Growing Solutions Segment 2023 Performance | Metric | Value (US$ millions) | % Change vs 2022 | | :--- | :--- | :--- | | Sales | 2,073 | -14% | | Operating Income | 51 | -87% | - ICL is the world's sole producer of Polysulphate®, a natural multi-nutrient fertilizer mined in the UK, producing a record **1,009 thousand tonnes** in **2023**[425](index=425&type=chunk)[439](index=439&type=chunk) - The company launched eqo.x, a biodegradable coated fertilizer, to meet new EU standards taking effect in **2026**, aiming to reduce nutrient loss and environmental impact[278](index=278&type=chunk)[432](index=432&type=chunk) - In early **2024**, the company acquired Nitro **1000**, a Brazilian provider of biological crop inputs, to expand its product offerings in sustainable agriculture[428](index=428&type=chunk) [Environmental, Health and Safety (EHS) and Climate Disclosures (TCFD)](index=93&type=section&id=Environmental,%20Health%20and%20Safety) ICL is committed to a comprehensive ESG strategy, targeting **30%** GHG emissions reduction by **2030** and carbon neutrality by **2050**, having achieved a **22.2%** reduction by **2023** - ICL has committed to reducing Scope **1** & **2** GHG emissions by **30%** by **2030** (vs. **2018**) and achieving net-zero by **2050**, with a **22.2%** reduction from the **2018** baseline achieved by year-end **2023**[529](index=529&type=chunk)[628](index=628&type=chunk) - The company is reporting in alignment with the Task Force on Climate-related Financial Disclosures (TCFD) framework, covering governance, strategy, risk management, and metrics[528](index=528&type=chunk)[531](index=531&type=chunk) - In **2023**, ICL invested approximately **$175 million** in environmental-related projects and plans to allocate around **$174 million** for such purposes in **2024**[482](index=482&type=chunk) - The company entered into a **$1.55 billion** Sustainability-Linked Revolving Credit Facility in April **2023**, with KPIs tied to GHG emissions reduction, women in senior management, and supplier sustainability assessments[504](index=504&type=chunk) [Property, Plant and Equipment](index=146&type=section&id=D.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) This section details the company's significant properties, including production facilities and mineral extraction sites across Israel, Europe, the Americas, and Asia, providing technical information on mining operations, concessions, and resource estimates - The company's principal properties include production plants and mineral extraction sites in Israel, Germany, the Netherlands, Spain, the UK, the US, Brazil, and China[745](index=745&type=chunk)[752](index=752&type=chunk)[754](index=754&type=chunk) - The technical information regarding mineral reserves and resources was prepared by and verified by the qualified person, Wardell Armstrong International Ltd[759](index=759&type=chunk) Total Royalties Paid (2021-2023) | Year | Israel ($ millions) | Out of Israel ($ millions) | Total ($ millions) | | :--- | :--- | :--- | :--- | | 2023 | 170 | 10 | 180 | | 2022 | 95 | 8 | 103 | | 2021 | 75 | 6 | 81 | [ICL Boulby (United Kingdom)](index=156&type=section&id=ICL%20Boulby%20(United%20Kingdom)) ICL Boulby's underground polyhalite mine produced **1,009 thousand tonnes** of Polysulphate® in **2023**, with an estimated **8-year** life based on **7.6 million tonnes** of current reserves ICL Boulby Production (Polyhalite) | Year | Production (kt) | | :--- | :--- | | 2023 | 1,009 | | 2022 | 953 | | 2021 | 789 | ICL Boulby Mineral Reserves & Resources (as of Dec 31, 2023) | Category | Amount (Mt) | Grade (K2O) | | :--- | :--- | :--- | | **Probable Mineral Reserves** | **7.6** | **13.5%** | | Indicated Mineral Resources | 38.9 | 13.3% | | Inferred Mineral Resources | 9.3 | 13.3% | [ICL Iberia (Spain)](index=162&type=section&id=ICL%20Iberia%20(Spain)) ICL Iberia's Cabanasses underground potash mine produced **601 thousand tonnes** of KCl in **2023**, with an estimated **22-year** life based on **96.3 million tonnes** of current reserves, despite production losses from a **2023** accident ICL Iberia Production (Potash) | Year | KCl Produced (kt) | | :--- | :--- | | 2023 | 601 | | 2022 | 680 | | 2021 | 614 | ICL Iberia (Cabanasses) Mineral Reserves & Resources (as of Dec 31, 2023) | Category | Amount (Mt) | Grade (KCl) | | :--- | :--- | :--- | | **Total Mineral Reserves** | **96.3** | **25.9%** | | Measured + Indicated Mineral Resources | 131.6 | 24.5% | | Inferred Mineral Resources | 247.2 | 27.2% | [Rotem Amfert Israel (ICL Rotem)](index=168&type=section&id=Rotem%20Amfert%20Israel%20(ICL%20Rotem)) ICL Rotem's open-pit phosphate mines produced **5.8 million tonnes** of ore in **2023**, with limited reserves and a concession valid until **2024**, making approval of new mining areas like the Barir field critical for future operations ICL Rotem Production (Phosphate Ore) | Year | Tonnes Mined (kt) | | :--- | :--- | | 2023 | 5,770 | | 2022 | 4,488 | | 2021 | 4,893 | ICL Rotem Mineral Reserves & Resources (as of Dec 31, 2023) | Category | Amount (Mt) | Grade (P2O5) | | :--- | :--- | :--- | | **Proven Mineral Reserves** | **34.6** | **26.0%** | | Measured + Indicated Mineral Resources | 275.2 | 27.3% | [Dead Sea Works (Israel)](index=176&type=section&id=Dead%20Sea%20Works%20(Israel)) Dead Sea Works (DSW) extracted **3.8 million tonnes** of potash in **2023** under a concession valid until March **31**, **2030**, facing the operational challenge of managing salt accumulation in Pond **5** DSW Production | Product | 2023 (kt) | 2022 (kt) | 2021 (kt) | | :--- | :--- | :--- | :--- | | Potash | 3,819 | 4,011 | 3,900 | | Bromine | 143 | 178 | 182 | | Cast Mg | 17 | 22 | 18 | DSW Mineral Reserves & Resources (as of Dec 31, 2023) | Category | Amount (Mt) | Grade (KCl) | | :--- | :--- | :--- | | **Proven Mineral Reserves** | **138.5** | **20%** | | Measured + Indicated Mineral Resources | 1,725 | 20% | | Inferred Mineral Resources | 445 | 20% | [YPH China](index=183&type=section&id=YPH%20China) YPH, a **50/50** joint venture in China, operated the Haikou open-pit phosphate mine, producing **3.6 million tonnes** of ore in **2023** with **50.9 million tonnes** of proven reserves, sufficient for a **20-year** mine life YPH Production (Phosphate Ore) | Year | Tonnes Mined (kt) | | :--- | :--- | | 2023 | 3,646 | | 2022 | 3,223 | | 2021 | 2,656 | YPH Mineral Reserves & Resources (as of Dec 31, 2023) | Category | Amount (Mt) | Grade (P2O5) | | :--- | :--- | :--- | | **Proven Mineral Reserves** | **50.9** | **21.8%** | | Measured + Indicated Mineral Resources | 5.3 | 23.0% | | Inferred Mineral Resources | 0.2 | 20.0% | Financial Results and Business Overview [Operating Results](index=189&type=section&id=A.%20OPERATING%20RESULTS) In **2023**, ICL's sales decreased by **25%** to **$7.5 billion**, and operating income fell by **68%** to **$1.1 billion**, primarily driven by lower selling prices across all segments Consolidated Results of Operations (2022 vs. 2023) | Item | 2023 (US$ millions) | 2022 (US$ millions) | % Change | | :--- | :--- | :--- | :--- | | Sales | 7,536 | 10,015 | (25)% | | Gross profit | 2,671 | 5,032 | (47)% | | Operating income | 1,141 | 3,516 | (68)% | | Net income attributable to shareholders | 647 | 2,159 | (70)% | - The primary driver for the decrease in operating income was a negative price variance of **$2.2 billion**, partially offset by positive variances from lower raw material costs (**$136 million**) and transportation expenses (**$63 million**)[1061](index=1061&type=chunk) Sales by Customer Location (2022 vs. 2023) | Region | 2023 (US$ millions) | 2022 (US$ millions) | | :--- | :--- | :--- | | Europe | 2,332 | 2,809 | | Asia | 1,744 | 2,743 | | South America | 1,665 | 2,315 | | North America | 1,351 | 1,577 | | Rest of the world | 444 | 571 | | **Total** | **7,536** | **10,015** | [Liquidity and Capital Resources](index=209&type=section&id=B.%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of December **31**, **2023**, ICL maintained a solid liquidity position with **$592 million** in cash and short-term investments, **$1.2 billion** in unutilized credit facilities, and net financial liabilities of **$2,095 million** - As of December **31**, **2023**, the company had **$592 million** in cash, cash equivalents, and short-term deposits, with net financial liabilities of **$2,095 million**[1084](index=1084&type=chunk)[1085](index=1085&type=chunk) Cash Flow Summary (2022 vs. 2023) | Cash Flow Activity | 2023 (US$ millions) | 2022 (US$ millions) | | :--- | :--- | :--- | | Net cash from operating activities | 1,595 | 2,025 | | Net cash used in investing activities | (863) | (754) | | Net cash used in financing activities | (712) | (1,303) | - Principal capital expenditures in recent years include the LFP battery materials plant in St. Louis, the salt harvesting project in the Dead Sea, and construction of new harvesters[1104](index=1104&type=chunk)[1105](index=1105&type=chunk)[1107](index=1107&type=chunk) - In April **2023**, the company entered into a **$1.55 billion** Sustainability-Linked Revolving Credit Facility, replacing a previous facility[1091](index=1091&type=chunk) [Research and Development, Intellectual Property](index=213&type=section&id=C.%20RESEARCH%20AND%20DEVELOPMENT,%20INTELLECTUAL%20PROPERTY%20AND%20LICENSES,%20ETC.) ICL's R&D and Innovation activities are central to its strategy, focusing on next-generation fertilization, food technology, e-mobility/sustainability, novel materials, and circular economy initiatives, holding approximately **700** patents and over **3,000** registered trademarks - Key R&D fields include next-generation fertilization (e.g., biodegradable coatings), food technology (e.g., alternative proteins), and e-mobility (e.g., cathode-active materials for batteries)[1116](index=1116&type=chunk)[1117](index=1117&type=chunk) 2023 R&D Expenses by Segment | Segment | R&D Expense (US$ millions) | | :--- | :--- | | Industrial Products | 19 | | Potash | 5 | | Phosphate Solutions | 10 | | Growing Solutions | 17 | - As of December **31**, **2023**, ICL holds approximately **700** granted patents in **210** patent families and over **3,000** registered trademarks worldwide[1137](index=1137&type=chunk) [Critical Accounting Estimates](index=218&type=section&id=E.%20CRITICAL%20ACCOUNTING%20ESTIMATES) The preparation of ICL's financial statements requires management to make significant judgments and estimates involving considerable uncertainty, particularly for concession renewals, recoverable amounts of cash-generating units, and contingent/environmental liabilities - Management's critical accounting estimates involve significant judgment and are crucial for financial reporting, with key areas including assessing the likelihood of renewing concessions and permits, which impacts asset depreciation periods[1141](index=1141&type=chunk)[1142](index=1142&type=chunk)[1526](index=1526&type=chunk) - Estimating the recoverable amount of cash-generating units for impairment testing relies on forecasts of cash flows, mineral reserves, discount rates, and market growth[1526](index=1526&type=chunk) - Provisions for contingent liabilities, such as legal claims and environmental restoration, depend on assessing the probability of an outflow of resources and estimating future costs[1526](index=1526&type=chunk) Directors, Senior Management and Employees [Directors and Officers](index=219&type=section&id=A.%20DIRECTORS%20AND%20OFFICERS) As of the report date, ICL's Board of Directors consists of **12** members, led by Executive Chairman Yoav Doppelt, with the executive management team led by President & CEO Raviv Zoller - The Board of Directors is composed of **12** members, including an Executive Chairman, two external directors, and several independent directors, ensuring compliance with both Israeli and NYSE governance standards[1145](index=1145&type=chunk)[1209](index=1209&type=chunk)[1210](index=1210&type=chunk) - The executive leadership team is headed by Raviv Zoller, President & CEO, and includes divisional presidents for Industrial Products, Potash, Phosphate Solutions, and Growing Solutions, along with heads of key corporate functions like Finance, Legal, and Innovation[1163](index=1163&type=chunk) [Compensation](index=225&type=section&id=B.%20COMPENSATION) ICL's compensation philosophy links executive pay to financial performance, strategy execution, and ESG targets, with aggregate compensation for senior management at approximately **$12 million** in **2023** - The aggregate compensation for all senior management in **2023** was approximately **$12 million**[1190](index=1190&type=chunk) 2023 Compensation for Five Highest Earning Senior Officers | Name | Position | Base Salary (US$ thousand) | Bonus (STI) (US$ thousand) | Equity (LTI) (US$ thousand) | Total (US$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Raviv Zoller | President & CEO | 805 | 668 | 1,852 | 3,677 | | Yoav Doppelt | Executive Chairman | 411 | 219 | 1,007 | 1,717 | | Elad Aharonson | President, Growing Solutions | 402 | 223 | 561 | 1,350 | | Aviram Lahav | CFO | 383 | 237 | 446 | 1,233 | | Lilach Geva-Harel | EVP, Chief Legal & Sustainability | 263 | 176 | 369 | 950 | - ESG performance targets, including health & safety, GHG emissions reduction, and diversity, are integrated into the annual short-term incentive plan for all executive officers[1189](index=1189&type=chunk)[1199](index=1199&type=chunk) [Board Practices](index=234&type=section&id=C.%20BOARD%20PRACTICES) ICL's Board of Directors operates with **12** members and several committees, including statutory Audit and Human Resources & Compensation committees, emphasizing diversity and compliance with Israeli law - The Board has four main committees: Audit and Accounting, Human Resources & Compensation, Climate, Sustainability & Community Relations, and Financing[1223](index=1223&type=chunk) - The Audit and Accounting Committee and the HR & Compensation Committee are statutory committees under Israeli law, must include all external directors, and must be chaired by an external director[1224](index=1224&type=chunk)[1228](index=1228&type=chunk) - The company has D&O liability insurance with a limit of **$200 million**, which includes a joint primary tier with its controlling shareholder, Israel Corp[1244](index=1244&type=chunk)[1245](index=1245&type=chunk) [Human Capital](index=243&type=section&id=D.%20HUMAN%20CAPITAL) As of December **31**, **2023**, ICL employed **13,350** people globally, focusing on being an "Employer of Choice" through talent management and Diversity, Inclusion & Belonging (DIB) initiatives, meeting or exceeding female representation goals Total Employees (2021-2023) | Year | Total Employees | | :--- | :--- | | 2023 | 13,350 | | 2022 | 13,619 | | 2021 | 13,233 | - The company has set Diversity, Inclusion & Belonging (DIB) goals, including reaching **25%** female representation in senior leadership (T**100**) and on the Board of Directors by the end of **2024**, which were achieved in **2023** with **25%** in senior leadership and **36%** on the board[1277](index=1277&type=chunk)[1278](index=1278&type=chunk) - ICL's human capital strategy is built on five pillars for DIB: executive support, data transparency, learning and development, employee resource groups, and celebrating diversity[1268](index=1268&type=chunk)[1269](index=1269&type=chunk)[1279](index=1279&type=chunk)[1280](index=1280&type=chunk)[1282](index=1282&type=chunk) Major Shareholders and Related Party Transactions [Major Shareholders](index=250&type=section&id=A.%20MAJOR%20SHAREHOLDERS) As of March **6**, **2024**, Israel Corporation Ltd. is the controlling shareholder of ICL, beneficially owning **43.98%** of voting rights, with other major shareholders holding over **5%**, and the State of Israel holding a Special State Share with veto rights Beneficial Ownership of Ordinary Shares (as of March 6, 2024) | Shareholder | Ownership % | | :--- | :--- | | Israel Corporation Ltd. | 43.98% | | Migdal Insurance & Financial Holdings Ltd. | 6.10% | | Harel Insurance Investments & Financial Services Ltd. | 5.47% | | Altshuler Shaham Ltd. | 5.01% | | The Phoenix Holdings Ltd. | 5.01% | - Israel Corporation Ltd. has decisive influence at shareholder meetings and the power to appoint most directors, effectively controlling the company's operations and business strategy[1293](index=1293&type=chunk) - The State of Israel holds one Special State Share, which grants it veto power over certain strategic decisions to protect its vital interests[1289](index=1289&type=chunk)[1294](index=1294&type=chunk) [Related and Interested Party Transactions](index=255&type=section&id=B.%20RELATED%20(AND%20INTERESTED)%20PARTY%20TRANSACTIONS) ICL's related party transactions are governed by Israeli Companies Law, requiring specific approvals, with key arrangements including a registration rights agreement with Israel Corp., a joint D&O insurance policy, and the termination of a management fee agreement in July **2022** - Extraordinary transactions with a controlling shareholder require approval from the Audit Committee, Board of Directors, and a special majority of shareholders[1309](index=1309&type=chunk) - The management services agreement with the parent company, Israel Corp., was terminated in July **2022**, with directors affiliated with Israel Corp. now receiving standard director compensation[1319](index=1319&type=chunk)[1924](index=1924&type=chunk) - The company maintains a joint D&O liability insurance policy with Israel Corp., which is renewed annually and approved in accordance with regulations for interested party transactions[1243](index=1243&type=chunk)[1923](index=1923&type=chunk) Financial Information [Consolidated Statements and Other Financial Information](index=259&type=section&id=A.%20CONSOLIDATED%20STATEMENTS%20AND%20OTHER%20FINANCIAL%20INFORMATION) This section covers various financial and legal aspects, including the impact of Israel's Concentration Law, price monitoring regulations, the company's monopoly status, significant legal proceedings, and its dividend policy targeting up to **50%** of annual adjusted net profit - ICL and its main Israeli subsidiaries are classified as "high-concentration" entities under Israel's Concentration Law, which requires regulators to consider economic concentration when granting rights in essential infrastructure[1328](index=1328&type=chunk) - The company is involved in several legal proceedings, including derivative actions and class actions related to environmental damages, such as the Ashalim Stream incident and alleged pollution in Haifa Bay[1333](index=1333&type=chunk)[1792](index=1792&type=chunk)[1806](index=1806&type=chunk) - A governmental decision to redevelop Haifa Bay requires ICL's subsidiary, Fertilizers and Chemicals Ltd., to negotiate an end to its industrial activity in the area, potentially by the end of **2025**, though the timeline is considered unrealistic by the company[1338](index=1338&type=chunk)[1339](index=1339&type=chunk) - The company's dividend policy targets a distribution rate of up to **50%** of adjusted annual net profit, subject to board approval and legal limitations on distributable profits[1344](index=1344&type=chunk) Additional Information [Share Capital](index=264&type=section&id=A.%20SHARE%20CAPITAL) As of December **31**, **2023**, ICL's authorized share capital consisted of approximately **1.485 billion** ordinary shares, with **1.314 billion** issued and outstanding, and the State of Israel holding one Special State Share Share Capital as of December 31, 2023 | Share Class | Authorized | Issued and Outstanding | | :--- | :--- | :--- | | Ordinary Shares (NIS 1 par value) | 1,484,999,999 | 1,314,025,336 | | Special State Share (NIS 1 par value) | 1 | 1 | - Approximately **14 million** ordinary shares were issuable upon the exercise of outstanding options granted to officers and employees[1356](index=1356&type=chunk) [Memorandum, Articles of Association and Special State Share](index=264&type=section&id=B.%20MEMORANDUM,%20ARTICLES%20OF%20ASSOCIATION%20AND%20SPECIAL%20STATE%20SHARE) The company's governance is defined by its Articles of Association, with the Special State Share granting the Israeli government veto power over significant corporate actions, including the sale of material assets and any acquisition of **14%** or more of the company's share capital - The Special State Share gives the State of Israel veto power over the sale or transfer of material assets not in the ordinary course of business[1361](index=1361&type=chunk) - Acquisition or holding of **14%** or more of the company's outstanding share capital is invalid without the consent of the holder of the Special State Share[1363](index=1363&type=chunk) - The state's vital interests protected by the share include preserving the company's Israeli character, monitoring natural resources, and preventing influence by hostile entities[1367](index=1367&type=chunk) [Taxation](index=267&type=section&id=E.%20TAXATION) This section outlines material Israeli and U.S. federal income tax considerations for investors, including Israel's **23%** corporate tax rate, natural resources taxation, and dividend/capital gains taxes for residents and non-residents - The statutory corporate income tax rate in Israel is **23%**, though the company benefits from reduced tax rates under the Law for the Encouragement of Capital Investments[1374](index=1374&type=chunk)[1691](index=1691&type=chunk) - The company is subject to Israel's Law for Taxation of Profits from Natural Resources, which includes royalties and a surplus profit levy on minerals like bromine, phosphate, magnesium, and potash[1374](index=1374&type=chunk)[1706](index=1706&type=chunk) - For non-Israeli resident investors, gains from selling publicly traded shares are generally exempt from Israeli capital gains tax, unless specific conditions are met or a tax treaty provides otherwise, while dividends are generally subject to a **25%** or **30%** withholding tax, which may be reduced by a tax treaty[1379](index=1379&type=chunk)[1384](index=1384&type=chunk) - For U.S. Holders, dividends may be eligible for favorable qualified dividend income tax rates and are generally treated as foreign-source income for foreign tax credit purposes, with the company believing it was not a Passive Foreign Investment Company (PFIC) for **2023**[1393](index=1393&type=chunk)[1397](index=1397&type=chunk) Quantitative and Qualitative Disclosures About Market Risk [Market Risk Management](index=273&type=section&id=Risk%20Management) ICL is exposed to various market risks, including fluctuations in currency exchange rates, interest rates, and commodity prices, which it manages by minimizing exposure to non-functional currencies and hedging a portion of projected income and expenses using derivative financial instruments - The company uses derivative financial instruments for hedging purposes only, to reduce exposure to fluctuations in currency exchange rates, interest rates, energy prices, and marine shipping costs[1408](index=1408&type=chunk)[1411](index=1411&type=chunk) - The company's main currency exposures are to the Israeli Shekel (NIS) for operating costs, and to the Euro, British Pound, Brazilian Real, and Chinese Yuan for both sales and costs[1414](index=1414&type=chunk)[1417](index=1417&type=chunk) Sensitivity of Net Non-Derivative Financial Instruments to a 10% Increase in USD Exchange Rate (as of Dec 31, 2023) | Currency Pair | Impact on Profit/Loss (US$ millions) | | :--- | :--- | | USD/NIS | 70 | | EUR/USD | (82) | | BRL/USD | 31 | | CNY/USD | 21 | - The company has loans with variable interest rates, creating exposure to interest rate changes, and uses interest rate swaps and cross-currency swaps to hedge some of this risk[1430](index=1430&type=chunk) Controls and Procedures [Disclosure Controls and Procedures](index=281&type=section&id=A.%20DISCLOSURE%20CONTROLS%20AND%20PROCEDURES) The CEO and CFO evaluated the company's disclosure controls and procedures as of December **31**, **2023**, and concluded that they were effective in ensuring timely and effective information reporting for SEC filings - ICL's CEO and CFO concluded that as of the end of the period covered by the annual report, the company's disclosure controls and procedures were effective[1445](index=1445&type=chunk) [Management's Annual Report on Internal Controls Over Financial Reporting](index=281&type=section&id=B.%20MANAGEMENT'S%20ANNUAL%20REPORT%20ON%20INTERNAL%20CONTROLS%20OVER%20FINANCIAL%20REPORTING) Management concluded that ICL's internal control over financial reporting was effective as of December **31**, **2023**, based on the COSO **2013** framework, with an attestation report issued by Somekh Chaikin (KPMG) - Management assessed the effectiveness of internal control over financial reporting using the COSO **2013** framework and concluded that it was effective as of December **31**, **2023**[1448](index=1448&type=chunk) - The independent registered public accounting firm, Somekh Chaikin (KPMG), audited and reported on the effectiveness of ICL's internal controls over financial reporting[1449](index=1449&type=chunk) - No material changes to the internal control over financial reporting occurred during the period covered by the annual report[1450](index=1450&type=chunk) Corporate Governance and Other Disclosures [Corporate Governance](index=284&type=section&id=Item%2016G%20–%20CORPORATE%20GOVERNANCE) As a foreign private issuer listed on the NYSE, ICL follows certain Israeli corporate governance practices instead of NYSE requirements, utilizing exemptions that may provide less protection than afforded to investors in domestic U.S. companies - ICL relies on the "foreign private issuer exemption" to follow Israeli home country practices instead of certain NYSE corporate governance rules[1460](index=1460&type=chunk) - Exemptions taken include not having a majority-independent board, not having a nominating committee composed entirely of independent directors, and following Israeli law for shareholder approval of equity plans and securities issuances[1461](index=1461&type=chunk)[1462](index=1462&type=chunk) [Cybersecurity](index=286&type=section&id=Item%2016K%20–%20Cybersecurity) ICL's cybersecurity strategy, based on the NIST framework, focuses on plant security, data protection, and fraud prevention, overseen by a Chief Information Security Officer (CISO) who reports to executive management and the Board of Directors - The company's cybersecurity strategy is built on three pillars: plant and operational security, critical assets & data protection, and fraud prevention, based on the NIST Cybersecurity Framework[1465](index=1465&type=chunk) - Cybersecurity risk management is overseen by the CISO, with regular updates provided to the Global Executive Committee, Audit Committee, and Board of Directors[1469](index=1469&type=chunk)[1470](index=1470&type=chunk)[1471](index=1471&type=chunk) - ICL conducts comprehensive Cyber Maturity surveys approximately every **18** months and cooperates with Israel's National Cyber Emergency Response Team (CERT) as part of its critical infrastructure designation[1467](index=1467&type=chunk) Financial Statements [Consolidated Statements of Financial Position](index=295&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) As of December **31**, **2023**, ICL's total assets were **$11,627 million**, a slight decrease from **2022**, while total liabilities decreased to **$5,590 million**, leading to an increase in total equity to **$6,037 million** Consolidated Statements of Financial Position (as of Dec 31) | Account | 2023 (US$ millions) | 2022 (US$ millions) | | :--- | :--- | :--- | | **Total current assets** | **4,034** | **4,548** | | **Total non-current assets** | **7,593** | **7,202** | | **Total assets** | **11,627** | **11,750** | | **Total current liabilities** | **2,638** | **2,606** | | **Total non-current liabilities** | **2,952** | **3,431** | | **Total liabilities** | **5,590** | **6,037** | | **Total equity** | **6,037** | **5,713** | | **Total liabilities and equity** | **11,627** | **11,750** | [Consolidated Statements of Income](index=296&type=section&id=Consolidated%20Statements%20of%20Income) For the year ended December **31**, **2023**, ICL reported sales of **$7,536 million**, a **25%** decrease from **2022**, with operating income falling sharply to **$1,141 million** and net income attributable to shareholders at **$647 million**, resulting in a diluted EPS of **$0.50** Consolidated Statements of Income (for the year ended Dec 31) | Account | 2023 (US$ millions) | 2022 (US$ millions) | 2021 (US$ millions) | | :--- | :--- | :--- | :--- | | Sales | 7,536 | 10,015 | 6,955 | | Gross profit | 2,671 | 5,032 | 2,611 | | Operating income | 1,141 | 3,516 | 1,210 | | Net income attributable to shareholders | 647 | 2,159 | 783 | | Diluted earnings per share (in dollars) | 0.50 | 1.67 | 0.60 | [Consolidated Statements of Cash Flows](index=301&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the year ended December **31**, **2023**, net cash provided by operating activities was **$1,595 million**, a decrease from **2022**, while net cash used in investing activities increased to **$863 million**, and net cash used in financing activities decreased significantly to **$712 million** Consolidated Statements of Cash Flows (for the year ended Dec 31) | Account | 2023 (US$ millions) | 2022 (US$ millions) | 2021 (US$ millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | 1,595 | 2,025 | 1,065 | | Net cash used in investing activities | (863) | (754) | (579) | | Net cash used in financing activities | (712) | (1,303) | (244) | | Net change in cash and cash equivalents | 20 | (32) | 242 |
ICL(ICL) - 2023 Q4 - Earnings Call Presentation
2024-02-29 00:20
Key developments • Sales volume of 4,683kmt – higher than production and vs. FY'22 • Second straight year of profitability for magnesium business • Potash price stabilized, with 4Q'23 CIF price per ton of $345 roughly unchanged on sequential basis Notes: Segment EBITDA and margin are non-GAAP financial measures; please see appendix for additional details. In 2022, ICL consolidated its specialty agriculture businesses under Growing Solutions (formerly Innovative Ag Solutions or IAS) and moved ICL Boulby and ...
ICL(ICL) - 2023 Q2 - Earnings Call Presentation
2023-08-10 07:36
AICL Raviv Zoller | President and CEO August 9, 2023 Second quarter results • Sales of $1.83B, down YoY and up vs. 2Q'21 • Maintained strong cash generation, with $391M of operating cash flow • Diluted EPS of $0.13 • Commodity prices stabilized at end of second quarter | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------|--------|--------|-----------------|------------|-------|-----------------------|--------|--------|-------------------|---------------------|-- ...
ICL(ICL) - 2023 Q2 - Earnings Call Transcript
2023-08-09 17:06
Conference Call Participants Earlier today, we filed our reports with the securities authorities and the stock exchanges in the U.S. and in Israel. Those reports as well as the press release are available on our website. There will be a replay of the webcast available after the meeting, and a transcript will be available shortly thereafter. The presentation, which will be reviewed today, was also filed with the securities authorities and is available on our website. Please be sure to review the disclaimer o ...
ICL(ICL) - 2023 Q1 - Earnings Call Presentation
2023-05-10 18:12
Maximizing momentum for long-term growth EV sales forecasts Sales by segment US$M Growing Solutions… new product launches • Inflation declining, but still a concern • Raw material prices declining, but high-priced inventory remains in market Financial Results Important legal notes Disclaimer and safe harbor for forward-looking statements Solid first quarter results 3 • Adjusted EBITDA of $610M, down YoY • Expanded financial flexibility with $1.55B sustainability linked credit facility • Continued to return ...
ICL(ICL) - 2023 Q1 - Earnings Call Transcript
2023-05-10 18:10
Company Participants Conference Call Participants Operator I'd like to hand the call over to our first speaker today, Peggy Reilly Tharp, Vice President of Global Investor Relations. Please go ahead, ma'am. Thank you. Hello, everyone. I'm Peggy Reilly Tharp, Vice President of Global Investor Relations. I'd like to welcome you and thank you for joining us today for our quarterly earnings call. The event is being webcast live on our Web site at icl-group.com. Our comments today will contain forward looking st ...
ICL(ICL) - 2022 Q4 - Annual Report
2023-02-28 17:31
(Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of February 2023 Commission File Number: 001-13742 ICL GROUP LTD. ICL Group Ltd. Millennium Tower 23 Aranha Street P.O. Box 20245 Tel Aviv, 61202 Israel (972-3) 684-4400 (Address of principal executive office) Indicate by check mark whether the registra ...
ICL(ICL) - 2022 Q4 - Annual Report
2023-02-28 11:04
PART I [Key Information](index=11&type=section&id=Item%203.%20Key%20Information) This section presents ICL Group's selected financial data for 2020-2022, including IFRS to non-GAAP reconciliation, and a comprehensive overview of business, industry, operational, and share-related risk factors [Selected Financial Data](index=11&type=section&id=A.%20SELECTED%20FINANCIAL%20DATA) ICL Group reported substantial 2022 growth, with sales reaching **$10,015 million** and operating income surging to **$3,516 million**, alongside non-GAAP adjusted figures for performance comparison Selected Financial Data (2020-2022) | | For the Year Ended December 31, | | | | :--- | :--- | :--- | :--- | | | **2022 (US$ millions)** | **2021 (US$ millions)** | **2020 (US$ millions)** | | **Sales** | 10,015 | 6,955 | 5,043 | | **Gross profit** | 5,032 | 2,611 | 1,490 | | **Operating income** | 3,516 | 1,210 | 202 | | **Net income attributable to shareholders** | 2,159 | 783 | 11 | | **Basic earnings per share (in dollars)** | 1.68 | 0.61 | 0.01 | | **Diluted earnings per share (in dollars)** | 1.67 | 0.60 | 0.01 | | **Dividends declared per share (in dollars)** | 0.91 | 0.21 | 0.09 | | **Total assets** | 11,750 | 11,080 | 9,664 | | **Total equity** | 5,713 | 4,736 | 4,088 | Reconciliation of IFRS to Non-GAAP Measures (2020-2022) | | For the Year Ended December 31, | | | | :--- | :--- | :--- | :--- | | | **2022 (US$ millions)** | **2021 (US$ millions)** | **2020 (US$ millions)** | | **Operating income (IFRS)** | 3,516 | 1,210 | 202 | | Total adjustments to operating income | (7) | (16) | 307 | | **Adjusted operating income (Non-GAAP)** | 3,509 | 1,194 | 509 | | **Net income attributable to shareholders (IFRS)** | 2,159 | 783 | 11 | | Total adjustments to operating income | (7) | (16) | 307 | | Total tax adjustments | 198 | 57 | (60) | | **Total adjusted net income - shareholders (Non-GAAP)** | 2,350 | 824 | 258 | [Risk Factors](index=15&type=section&id=D.%20RISK%20FACTORS) The company faces diverse risks, including those related to business operations, industry conditions, Israeli operations, and ordinary shares, which could materially affect its financial performance - The company's business, financial condition, and results of operations could be materially and adversely affected by a variety of risks, including dependence on governmental permits, environmental regulations, supply and demand volatility, and international operational risks[42](index=42&type=chunk)[43](index=43&type=chunk) - Risks related to business operations include dependence on government concessions and permits in Israel, Spain, the UK, and China, which are critical for mineral extraction, and failure to renew these could materially impact operations[44](index=44&type=chunk)[46](index=46&type=chunk)[52](index=52&type=chunk) - Industry-related risks stem from volatility in the agricultural sector, affecting fertilizer sales, and economic conditions in end-markets for industrial and phosphate products, alongside significant competition from large, state-owned or subsidized companies[146](index=146&type=chunk)[150](index=150&type=chunk) - Risks specific to Israeli operations include political, economic, and military instability in the region, which could directly affect headquarters and key mining facilities, and the Special State Share granting the Israeli government veto power over certain asset transfers and share acquisitions[178](index=178&type=chunk)[189](index=189&type=chunk) - Shareholder risks include the significant influence of its controlling shareholder, Israel Corporation Ltd., holding approximately **44%** of voting rights, and potential share price fluctuation and dilution from future share issuances[187](index=187&type=chunk)[188](index=188&type=chunk)[191](index=191&type=chunk) [Information on the Company](index=45&type=section&id=Item%204.%20Information%20on%20the%20Company) This section details ICL's history, corporate development, business overview across four segments, and extensive information on global properties, plants, equipment, and mineral extraction operations [History and Development of the Company](index=45&type=section&id=A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) ICL Group, established in 1968, underwent privatization in 1992, with shares listed on TASE and NYSE (2014), and Israel Corporation Ltd. becoming the controlling shareholder - ICL was established in 1968, privatized in 1992, and listed on the NYSE in 2014, with Israel Corporation Ltd. as the controlling shareholder holding approximately **43.16%** of outstanding ordinary shares as of December 31, 2022[204](index=204&type=chunk)[205](index=205&type=chunk) - Significant recent transactions include the 2021 acquisitions of Agro Fertiláqua Participações S.A. and the South American Plant Nutrition business of Compass Minerals, strengthening its position in Brazil's specialty plant nutrition market[206](index=206&type=chunk)[208](index=208&type=chunk) [Business Overview](index=46&type=section&id=B.%20BUSINESS%20OVERVIEW) ICL is a global specialty minerals company operating through four segments, leveraging unique assets and innovation to achieve market leadership, with a strong commitment to ESG principles and cybersecurity - ICL operates an integrated business model structured around three mineral value chains: bromine, potash, and phosphate, organized into four segments: Industrial Products, Potash, Phosphate Solutions, and Growing Solutions[207](index=207&type=chunk)[213](index=213&type=chunk) - The company's strategy is to achieve leadership in its business segments by leveraging unique assets, agronomic and chemical knowledge, and access to Israel's innovation ecosystem, with a focus on growth in agriculture, food, and industrial solutions[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk) - ICL is committed to sustainability and ESG, with a focus on reducing GHG emissions, increasing renewable energy use, and promoting a circular economy, aiming to reduce Scope 1 & 2 GHG emissions by **30%** by 2030 (vs. 2018) and achieve carbon neutrality by 2050[437](index=437&type=chunk)[483](index=483&type=chunk) - The company has a robust cybersecurity strategy focused on plant and operational security, critical asset protection, and fraud prevention, which includes continuous cooperation with national cyber authorities in Israel[641](index=641&type=chunk)[642](index=642&type=chunk) [Property, Plant and Equipment](index=132&type=section&id=D.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) This section details ICL's global production facilities, mines, and logistical assets, providing technical summaries of mineral extraction operations, including concessions, geology, production data, and resource/reserve estimates for key sites - ICL operates a global network of production facilities, with key sites in Israel (Sodom, Mishor Rotem), Europe (Spain, UK, Germany, Netherlands), the Americas (US, Brazil), and China (Yunnan)[655](index=655&type=chunk)[660](index=660&type=chunk)[661](index=661&type=chunk) - The company's mineral extraction activities are dependent on concessions and permits from governments in the countries where it operates, including Israel, Spain, the UK, and China[670](index=670&type=chunk) Mineral Reserves as of December 31, 2022 | Commodity | Location | Proven Reserves (Mt) | Probable Reserves (Mt) | Total Reserves (Mt) | Grades/Qualities | | :--- | :--- | :--- | :--- | :--- | :--- | | **K2O** | United Kingdom | - | 7.6 | 7.6 | 13.5% | | **KCl** | Spain | 29.8 | 66.9 | 96.7 | 25.4% | | **KCl** | Israel | 159.5 | - | 159.5 | 20.0% | | **P2O5** | Israel | 40.1 | - | 40.1 | 25.9% | | **P2O5** | China | 54.5 | - | 54.5 | 21.8% | Mineral Resources as of December 31, 2022 (Exclusive of Reserves) | Commodity | Location | Measured (Mt) | Indicated (Mt) | Measured + Indicated (Mt) | Inferred (Mt) | | :--- | :--- | :--- | :--- | :--- | :--- | | **K2O** | United Kingdom | - | 23.4 | 23.4 | 6.9 | | **KCl** | Spain | 85.9 | 58.9 | 144.8 | 294.2 | | **KCl** | Israel | 225.0 | 1,500.0 | 1,725.0 | 445.0 | | **P2O5** | Israel | 265.4 | 10.0 | 275.4 | - | | **P2O5** | China | 3.0 | 2.3 | 5.3 | 0.2 | [Financial Results and Business Overview](index=178&type=section&id=Item%205.%20Financial%20Results%20and%20Business%20Overview) This section analyzes ICL's 2022 operating results, highlighting significant sales and operating income growth driven by pricing, discusses liquidity, capital resources, major expenditures, and R&D activities [Operating Results](index=178&type=section&id=A.%20OPERATING%20RESULTS) In 2022, ICL's sales surged **44%** to **$10,015 million** and operating income grew **191%** to **$3,516 million**, primarily driven by higher selling prices across all four segments Results of Operations (2021 vs. 2022) | | For the Years Ended December 31, | | | :--- | :--- | :--- | | | **2022 ($ millions)** | **2021 ($ millions)** | | **Sales** | 10,015 | 6,955 | | **Gross profit** | 5,032 | 2,611 | | **Operating income** | 3,516 | 1,210 | | **Net income attributable to shareholders** | 2,159 | 783 | | **Basic earnings per share (in dollars)** | 1.68 | 0.61 | - The primary driver for the **$3,060 million** increase in sales was a positive price impact of **$3,541 million**, partially offset by a negative quantity impact of **$178 million** and unfavorable exchange rates[1001](index=1001&type=chunk)[1002](index=1002&type=chunk) Geographical Sales Breakdown (2021 vs. 2022) | Region | 2022 ($ millions) | 2021 ($ millions) | | :--- | :--- | :--- | | Europe | 2,809 | 2,159 | | Asia | 2,743 | 1,876 | | South America | 2,315 | 1,305 | | North America | 1,577 | 1,186 | | Rest of the world | 571 | 429 | | **Total** | **10,015** | **6,955** | [Liquidity and Capital Resources](index=200&type=section&id=B.%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of December 31, 2022, ICL maintained a solid liquidity position with **$508 million** cash, **$748 million** unutilized credit, and **$2,025 million** operating cash flow, supported by investment-grade credit ratings Cash Flow Summary (2021 vs. 2022) | | Year Ended December 31, | | | :--- | :--- | :--- | | | **2022 ($ millions)** | **2021 ($ millions)** | | Net cash provided by operating activities | 2,025 | 1,065 | | Net cash used in investing activities | (754) | (579) | | Net cash used in financing activities | (1,303) | (244) | - As of year-end 2022, the company had **$508 million** in cash and cash equivalents, **$748 million** in unutilized long-term credit facilities, and net financial liabilities of **$2,316 million**[1036](index=1036&type=chunk) - Principal capital expenditures have focused on the Salt Harvest Project at the Dead Sea, the new P-9 pumping station, a new WPA facility in China, and consolidation projects in Spain[1055](index=1055&type=chunk)[1058](index=1058&type=chunk)[1059](index=1059&type=chunk) - The company's credit ratings were reaffirmed at 'BBB-' by S&P and Fitch in mid-2022, both with a stable outlook[1047](index=1047&type=chunk)[1048](index=1048&type=chunk) [Research and Development, Intellectual Property and Licenses, etc.](index=204&type=section&id=C.%20RESEARCH%20AND%20DEVELOPMENT,%20INTELLECTUAL%20PROPERTY%20AND%20LICENSES,%20ETC.) ICL's RD&I strategy aligns with global megatrends and UN SDGs, focusing on next-generation solutions and digital agriculture, supported by approximately **770 granted patents** and **3,500 registered trademarks** - ICL's RD&I focuses on key areas including next-generation fertilizers, food technology (e.g., alternative proteins), e-mobility solutions (e.g., battery materials), novel materials, circular economy, Industry 4.0, and digital agriculture[1069](index=1069&type=chunk)[1070](index=1070&type=chunk)[1071](index=1071&type=chunk) R&D Expenses by Segment (2022) | Segment | R&D Expense ($ millions) | | :--- | :--- | | Industrial Products | 24 | | Potash | 7 | | Phosphate Solutions | 8 | | Growing Solutions | 16 | - As of December 31, 2022, the company holds approximately **770 granted patents** across 220 patent families and over **3,500 registered trademarks**, including key brands like Osmocote®, Peters®, Joha®, and Rovitaris®[1089](index=1089&type=chunk)[1090](index=1090&type=chunk) [Directors, Senior Management and Employees](index=210&type=section&id=Item%206.%20Directors,%20Senior%20Management%20and%20Employees) This section details ICL's corporate governance, including Board and executive composition, compensation policies, board practices, and a breakdown of its **13,619 employees** by segment and geography, emphasizing diversity and inclusion [Directors and Officers](index=210&type=section&id=A.%20DIRECTORS%20AND%20OFFICERS) ICL's Board of Directors comprises **twelve members**, including external and independent directors, while the executive management team is led by President & CEO Raviv Zoller - The Board of Directors is composed of **12 members**, including an Executive Chairman, two external directors, and several independent directors, ensuring compliance with both Israeli and NYSE governance standards[1096](index=1096&type=chunk)[1161](index=1161&type=chunk)[1162](index=1162&type=chunk) - The executive leadership team is headed by President & CEO Raviv Zoller and includes divisional presidents for Industrial Products, Potash, Phosphate Solutions, and Growing Solutions, along with heads of key corporate functions like Finance, HR, and Innovation[1114](index=1114&type=chunk)[1115](index=1115&type=chunk) [Compensation](index=217&type=section&id=B.%20COMPENSATION) Director compensation for non-executive directors totaled approximately **$824,000** in 2022, while senior management compensation, including the Executive Chairman, is performance-based and incorporates ESG metrics - Aggregate compensation for non-executive directors in 2022 was approximately **$824,000**, consisting of annual and per-meeting fees[1138](index=1138&type=chunk) 2022 Compensation for Five Highest Earning Senior Officers (US$ thousands) | Name | Position | Base Salary | Compensation | Bonus (STI) | Equity based (LTI) | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Raviv Zoller | President & CEO | 756 | 1,094 | 995 | 2,691 | 4,780 | | Yoav Doppelt | Executive Chairman | 226 | 870 | 171 | 1,503 | 2,544 | | Aviram Lahav | CFO | 339 | 805 | 425 | 688 | 1,918 | | Elad Aharonson | President, Growing Solutions | 412 | 577 | 367 | 809 | 1,753 | | Anat Tal-Ktalav (Deceased) | Former President, Industrial Products | 177 | 1,026 | - | 719 | 1,745 | - The company's compensation philosophy links pay to performance, with the 2022 Short-Term Incentive (STI) plan for executive officers incorporating ESG targets related to health, safety, environmental performance, and diversity[1143](index=1143&type=chunk)[1150](index=1150&type=chunk) [Board Practices](index=226&type=section&id=C.%20BOARD%20PRACTICES) ICL's Board of Directors, currently with **12 members**, ensures diverse composition and operates through statutory committees like Audit & Accounting and HR & Compensation, alongside a Climate, Sustainability & Community Relations Committee - The Board of Directors has between 7 and 20 members, with the current board at **12**, and a majority must be Israeli citizens and residents[1160](index=1160&type=chunk)[1161](index=1161&type=chunk) - Key board committees include the Audit & Accounting Committee, HR & Compensation Committee, Climate, Sustainability & Community Relations Committee, and Financing Committee, with the Audit and Compensation committees being statutory and chaired by external directors[1177](index=1177&type=chunk)[1178](index=1178&type=chunk) - The company has two external directors as required by Israeli law, who serve on the Audit and Compensation committees to ensure independence[1170](index=1170&type=chunk)[1174](index=1174&type=chunk) - The company maintains a directors' and officers' liability insurance policy with a total liability limit of up to **$350 million**, which includes a joint primary tier with its controlling shareholder, Israel Corp[1195](index=1195&type=chunk) [Employees](index=234&type=section&id=D.%20EMPLOYEES) As of December 31, 2022, ICL employed **13,619 people** globally, with a significant portion covered by collective bargaining agreements, and is actively promoting a Diversity, Inclusion & Belonging strategy Employee Breakdown by Segment (2022) | Segment | Number of Employees | | :--- | :--- | | Phosphate Solutions | 3,961 | | Growing Solutions | 3,792 | | Potash | 2,120 | | Industrial Products | 1,624 | | Global functions and headquarters | 1,236 | | Temporary employees | 886 | | **Total** | **13,619** | Employee Breakdown by Geography (2022) | Geography | Number of Employees | | :--- | :--- | | Israel | 4,534 | | China | 1,999 | | Brazil | 1,711 | | Spain | 940 | | USA | 830 | | Germany | 717 | | UK | 715 | | Netherlands | 612 | | All other | 675 | | Temporary employees | 886 | | **Total** | **13,619** | - ICL is committed to Diversity, Inclusion & Belonging (DIB) and has set targets to employ **25%** females in senior leadership (T100) and **25%** females on its Board of Directors by the end of 2024, with 2022 figures at **23%** and **33%** respectively[1213](index=1213&type=chunk)[1222](index=1222&type=chunk) [Major Shareholders and Related Party Transactions](index=241&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section identifies ICL's major shareholders, including controlling shareholder Israel Corporation Ltd. (**44%** voting rights), and details related party transactions, including the termination of a management services agreement [Major Shareholders](index=241&type=section&id=A.%20MAJOR%20SHAREHOLDERS) As of February 26, 2023, Israel Corporation Ltd. is ICL's controlling shareholder with **43.98%** voting rights, alongside other significant institutional shareholders and the State of Israel's Special State Share Major Shareholders (as of Feb 26, 2023) | Shareholder | Ordinary Shares Beneficially Owned (%) | | :--- | :--- | | Israel Corporation Ltd. | 43.98% | | State of Israel | 1 Special State Share | | Migdal Insurance & Financial Holdings Ltd. | 5.77% | | Harel Insurance Investments & Financial Services Ltd. | 5.40% | | Altshuler Shaham Ltd. | 5.00% | - Israel Corporation Ltd. has decisive influence at shareholder meetings and the power to appoint most directors, effectively controlling the company's operations and business strategy[1243](index=1243&type=chunk) [Related (and Interested) Party Transactions](index=245&type=section&id=B.%20RELATED%20(AND%20INTERESTED)%20PARTY%20TRANSACTIONS) ICL's related party transactions are governed by Israeli law, requiring specific approvals, with key agreements including a registration rights agreement and a joint D&O insurance policy, and the termination of a management services agreement with Israel Corp - Extraordinary transactions with a controlling shareholder require approval from the Audit Committee, the Board of Directors, and a special majority of shareholders[1255](index=1255&type=chunk) - The management services agreement with the controlling shareholder, Israel Corp., under which ICL paid an annual fee of **$1 million**, was terminated as of July 1, 2022[1263](index=1263&type=chunk) - The company maintains a joint directors' and officers' liability insurance policy with Israel Corp., with a total liability limit of up to **$350 million** under the approved framework[1262](index=1262&type=chunk) [Financial Information](index=250&type=section&id=Item%208.%20Financial%20Information) This section covers ICL's financial information, including legal and tax proceedings, its status as a monopoly in certain Israeli products, the Ashalim Stream settlement, and its dividend policy targeting up to **50%** of adjusted net profit [Consolidated Statements and Other Financial Information](index=250&type=section&id=A.%20CONSOLIDATED%20STATEMENTS%20AND%20OTHER%20FINANCIAL%20INFORMATION) ICL's 2022 fixed operating costs were approximately **$2,687 million**, with the company subject to Israel's Concentration Law and ongoing legal proceedings, including a **NIS 115 million** Ashalim Stream settlement, and a dividend policy of up to **50%** of adjusted net profit - ICL is subject to Israel's Concentration Law and has been declared a monopoly in Israel for several key products, including potash, phosphates, and bromine, though Israeli sales accounted for only about **3%** of total sales in 2022[1272](index=1272&type=chunk)[1275](index=1275&type=chunk) - A settlement agreement was signed in December 2022 regarding the 2017 Ashalim Stream incident, with total compensation amounting to **NIS 115 million** (approx. **$33.5 million**)[1774](index=1774&type=chunk)[1779](index=1779&type=chunk)[1780](index=1780&type=chunk) - The company's dividend policy targets a distribution rate of up to **50%** of the annual adjusted net profit, subject to board approval and legal requirements, with distributable profits as of December 31, 2022, amounting to **$5,125 million**[1289](index=1289&type=chunk)[1291](index=1291&type=chunk) [Additional Information](index=255&type=section&id=Item%2010.%20Additional%20Information) This section details ICL's share capital structure, the significant rights of the Special State Share held by the State of Israel, and key tax considerations for both Israeli and US investors [Share Capital](index=255&type=section&id=A.%20SHARE%20CAPITAL) As of December 31, 2022, ICL had **1,313,768,690** ordinary shares issued and outstanding, plus one Special State Share, with approximately **15 million** additional shares issuable from employee options - As of December 31, 2022, ICL had **1,313,768,690** ordinary shares issued and outstanding, and one Special State Share[1299](index=1299&type=chunk) - Approximately **15 million** additional ordinary shares were issuable upon the exercise of outstanding employee options at a weighted average exercise price of **NIS 26.28** (about **$7.47**) per share[1300](index=1300&type=chunk) [Memorandum, Articles of Association and Special State Share](index=255&type=section&id=B.%20MEMORANDUM,%20ARTICLES%20OF%20ASSOCIATION%20AND%20SPECIAL%20STATE%20SHARE) The Special State Share grants the State of Israel veto power over material asset transfers and significant share ownership changes (e.g., **14%** or more) to protect vital national interests and maintain ICL's Israeli identity - The Special State Share held by the State of Israel provides veto power over the transfer of material assets and invalidates any acquisition of **14%** or more of the company's share capital without state consent[1304](index=1304&type=chunk)[1305](index=1305&type=chunk)[1307](index=1307&type=chunk) - The state's vital interests protected by the share include keeping ICL as an Israeli company, monitoring natural resources, and preventing influence by hostile entities[1311](index=1311&type=chunk) [Taxation](index=258&type=section&id=E.%20TAXATION) This subsection outlines key tax considerations for ICL, including Israeli corporate tax rates and natural resource levies, and for investors, covering Israeli capital gains and dividend taxes, plus US federal income tax implications for US Holders - The statutory corporate income tax rate in Israel is **23%**, and the company is also subject to the Law for Taxation of Profits from Natural Resources, which imposes a progressive surplus profit levy on minerals like potash, bromine, and phosphates[1318](index=1318&type=chunk)[1668](index=1668&type=chunk)[1688](index=1688&type=chunk) - For Israeli resident individuals, capital gains tax on shares is generally **25%** (**30%** for a 'significant shareholder'), and dividend tax is also **25%** (or **30%**)[1321](index=1321&type=chunk)[1326](index=1326&type=chunk) - Non-Israeli residents are generally subject to a **25%** or **30%** withholding tax on dividends, which may be reduced under an applicable tax treaty, such as the US-Israel Tax Treaty[1328](index=1328&type=chunk)[1329](index=1329&type=chunk) - For US Holders, dividends are generally treated as foreign-source income and may be eligible for qualified dividend tax rates, and the company believes it was not a Passive Foreign Investment Company (PFIC) for 2022[1337](index=1337&type=chunk)[1341](index=1341&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=264&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) ICL is exposed to market risks from currency exchange rates, interest rates, and commodity prices, which are mitigated using derivative financial instruments, with sensitivity analyses provided for potential impacts [Exchange Rate Risk](index=264&type=section&id=Exchange%20Rate%20Risk) ICL's primary currency exposures are to NIS, EUR, GBP, BRL, and CNY, which are hedged using derivatives, with sensitivity analyses showing the impact of exchange rate changes on financial instrument fair value - The company's main currency exposures are to the Israeli Shekel, Euro, British Pound, Brazilian Real, and Chinese Yuan, where a strengthening of these currencies against the US dollar adversely affects profitability[1356](index=1356&type=chunk)[1357](index=1357&type=chunk)[1361](index=1361&type=chunk) Sensitivity to 10% Increase in Exchange Rates vs. USD (Impact on Fair Value, $ millions) | Currency | Net Impact on Financial Instruments (as of Dec 31, 2022) | | :--- | :--- | | USD/NIS | $(80.1) million | | EUR/USD | $81.7 million | | GBP/USD | $(3.7) million | | BRL/USD | $(9.6) million | | CNY/USD | $(23.4) million | [Interest Rate Risk](index=271&type=section&id=Interest%20Rate%20Risk) ICL is exposed to interest rate risk from variable and fixed-rate debt, managed through hedging instruments like swaps, with a **1%** USD interest rate increase potentially impacting fair value by **$85.3 million** - The company is exposed to cash flow risk from variable-rate debt and fair value risk from fixed-rate debt, and it uses hedging instruments like swaps to manage this exposure[1375](index=1375&type=chunk)[1376](index=1376&type=chunk) Sensitivity to Changes in USD Interest Rate (as of Dec 31, 2022) | Change in Interest Rate | Impact on Fair Value ($ millions) | | :--- | :--- | | Increase of 1% | $85.3 | | Increase of 0.5% | $43.8 | | Decrease of 0.5% | $(45.8) | | Decrease of 1% | $(94.6) | PART II [Controls and Procedures](index=274&type=section&id=Item%2015.%20Controls%20and%20Procedures) This section confirms the effectiveness of ICL's disclosure controls and internal controls over financial reporting as of December 31, 2022, as concluded by management and attested by the independent public accounting firm - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[1389](index=1389&type=chunk) - Management assessed the internal control over financial reporting as effective as of December 31, 2022, based on the COSO 2013 framework[1391](index=1391&type=chunk) - The independent registered public accounting firm issued an unqualified attestation report on the effectiveness of the company's internal control over financial reporting[1393](index=1393&type=chunk) [Corporate Governance](index=277&type=section&id=Item%2016G.%20Corporate%20Governance) As a foreign private issuer, ICL follows Israeli corporate governance practices, utilizing exemptions from certain NYSE listing standards regarding board independence, committees, and shareholder approvals for equity compensation - ICL, as a foreign private issuer, follows Israeli home country governance practices in lieu of certain NYSE listing standards[1405](index=1405&type=chunk) - Exemptions are utilized for NYSE requirements regarding: a majority independent board, a nominating/corporate governance committee, and shareholder approval for equity compensation plans and certain other share issuances[1406](index=1406&type=chunk)[1408](index=1408&type=chunk)
ICL(ICL) - 2022 Q3 - Earnings Call Transcript
2022-11-09 19:51
Financial Data and Key Metrics Changes - The company reported record third quarter results with sales of $2.5 billion, up more than 40% year-over-year, and adjusted EBITDA of $1 billion, up nearly 140% [13][12] - Year-to-date adjusted net income reached a record $1.9 billion, with adjusted earnings per share for the quarter at $0.49, also up nearly 200% year-over-year [12][11] - Operating cash flow for the third quarter was over $600 million, contributing to a year-to-date operating cash flow of $1.6 billion [11][13] - The EBITDA margin for the quarter increased to approximately 42%, up from approximately 24% in the same quarter last year [13] Business Line Data and Key Metrics Changes - **Industrial Products**: Sales reached $437 million, up 13%, with EBITDA of $170 million, up 40% year-over-year, and EBITDA margin improved to 39% from 31% [15] - **Potash Business**: Sales were $854 million, up more than 100%, with EBITDA of $537 million, up nearly 350%, and EBITDA margin increased to 63% from 30% [19] - **Phosphate Solutions**: Sales of $766 million were up nearly 30% year-over-year, with EBITDA of $239 million, up 70%, and EBITDA margin expanded to 31% from 24% [21] - **Growing Solutions**: Achieved sales of $629 million, up 25%, with EBITDA of $127 million, up 90%, and EBITDA margin expanded to 20% from 13% [27] Market Data and Key Metrics Changes - The company noted that potash prices in the U.S. are currently around $600, with Brazil seeing a return to normal inventory levels [66] - Crop prices remain high due to geopolitical tensions, particularly the situation in Ukraine, affecting farmer affordability and overall sentiment [52] - Fertilizer prices began to decline from second quarter peaks, with expectations of reduced fertilizer consumption due to supply chain issues [53] Company Strategy and Development Direction - The company aims for sustainable double-digit growth and continuous margin expansion towards 2027, leveraging opportunities arising from global sustainability challenges [42] - A focus on long-term specialty solutions is emphasized, with plans to expand into energy storage solutions and solid-state electrolytes [37][38] - The company is actively pursuing M&A opportunities to accelerate growth in its specialty business, capitalizing on favorable market conditions [99] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic challenges, including high inflation and geopolitical tensions, which are expected to persist into 2023 [48][92] - The outlook for 2023 is seen as solid but less explosive than the current year, with expectations of reduced volatility [96] - The company remains focused on maintaining premium pricing and long-term contracts despite market fluctuations [55] Other Important Information - The company has been recognized for its sustainability efforts and has launched several innovative products aimed at improving agricultural efficiency [32][34] - A significant investment of $197 million was awarded by the U.S. Department of Energy to develop a sustainable supply chain for energy storage solutions [24] Q&A Session Summary Question: Potash prices and inventory outlook - Management indicated that potash prices in the U.S. are leveling out around $600, with inventory levels in Brazil returning to normal [66][70] Question: Magnesium business outlook - The magnesium business has contracted about 60% of quantities for 2023 at higher average prices, with operating income significantly improved compared to the previous year [72] Question: LFP investment profitability - Profitability in the LFP business in China is around 20%, with expectations for higher returns as the company moves downstream [77] Question: 2023 outlook and long-term contracts - The company expects a solid year in 2023, with less volatility and a focus on maintaining long-term customer relationships despite market challenges [96] Question: Potash contract pricing expectations - Management refrained from providing specific pricing expectations but indicated that they do not anticipate prices starting with a 4 [119]
ICL(ICL) - 2022 Q2 - Earnings Call Transcript
2022-07-27 16:09
ICL Group Ltd (NYSE:ICL) Q2 2022 Earnings Conference Call July 27, 2022 8:30 AM ET Company Participants Peggy Reilly Tharp - VP of Global IR Raviv Zoller - CEO Aviram Lahav - CFO Conference Call Participants Mubasher Chaudhry - Citi Joel Jackson - BMO Capital Will Tang - Morgan Stanley Alexander Jones - Bank of America Rahi Parikh - Barclays Operator Ladies and gentlemen, thank you for standing by and welcome to the ICL Analyst Conference Call. Our presentation today will be followed by a question-and-answe ...