The market expects ICL Group (ICL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Au ...

This success paves the way for field trials in both the U.S. and Brazil in the second half of 2024, with results available by year-end. Lavie Bio will continue to leverage AI to drive product development and optimization, while ICL will guide the development and lead the way to product commercialization. The parties aim to start the regulatory process in 2026, just three years from program initiation. Recent research underscores the economic impact of climate change on global row crops, with extreme weather ...

sanjeri Investment Thesis Shares of ICL Group (NYSE:ICL) have gotten cheap enough for investors to look into buying, in my opinion. At around $4, the stock has priced in worst-case scenarios while leaving the upside for grabs. I believe the company is trading near a cyclical bottom as fertilizers trade at very historically cheap levels. Therefore, I think the longterm upside for ICL Group is attractive and recommend investors look into buying this chemical and fertilizer company at a pretty cheap valuation ...

Financial Performance - Israel Corporation Ltd. (ILCO) reported a net profit of $62 million for Q1 2024, a decrease from $117 million in Q1 2023, reflecting a year-over-year decline of approximately 47% [2] - ILCO's share in ICL profit for Q1 2024 was $48 million, down from $123 million in Q1 2023, indicating a significant reduction of about 61% [2] - Total assets as of March 31, 2024, amounted to $3.065 billion, with net cash totaling $78 million, an increase from $70 million as of December 31, 2023 [3] Liquidity and Financial Position - As of March 31, 2024, ILCO had total financial liabilities of $869 million and investments in liquid assets of $978 million, of which $10 million were pledged deposits [3] - The net cash position includes the fair value of derivatives transactions, which increased the economic value of financial liabilities by $31 million [3] Corporate Actions - ILCO completed a buyback program of $33 million that was initiated on November 16, 2023, and active until March 31, 2024 [4] - The Board of Directors declared a dividend distribution of $37 million on March 27, 2024, with a payment date set for April 17, 2024 [4] Strategic Focus - ILCO aims to expand its portfolio through new investments, focusing on sectors such as food technology, agriculture technology, healthcare, and Industry 4.0 [7] - The company holds approximately 44% stake in ICL Group and about 18% stake in AKVA Group, indicating a concentrated investment strategy [8]

ICL Group (ICL) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.50%. A quarter ago, it was expected that this potash and fertilizer producer would post earnings of $0.09 per share when it actually produced earnings of $0.10, delivering a surprise of 11.11%.Over the last four quarte ...

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 |

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 ...

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 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------|--------|--------|-----------------|------------|-------|-----------------------|--------|--------|-------------------|---------------------|-- ...

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 ...

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 ...