ICL Group Ltd

Shalom to everyone, thank you for your attention. Welcome to the next meeting of the ICA Zoom to summarize the Arab Spring and the year 2023 as a whole. As with every conversation, we invite you to ask questions during the Q&A session of the Zoom. Anyone who is willing to send a question, she is a member of the financial services committee, she knows the addresses on WhatsApp. Anyone who wants to open the line, come and sign with me at the handrail. With us today on the conversation, Aviv Tzoler, the President and CEO of ICA, and Aviram Lavs, the CEO of KSATIM. Before I take the floor to Raviv, I would like to note that except for the story data, all the data and the results that will be recorded in the future talks include risks and uncertainty. The company's results will not change in a positive way and will cause changes according to the company's investment and its decisions. I now hand over the floor to Raviv.

Raviv, please. Thank you, Oded, and best wishes to everyone. We are excited to update you on the annual and quarterly results. Let's start with the general one. All in all, prices of 7.5 billion dollars a year, with 1.8 billion dollars per year. We continue to focus on creating the required revenue, a strong 1.6 billion revenue, a revenue of 0.8 billion, completely in line with our plans. The revenue allocated to the pension is 55 cents, from which we have divided half as a dividend. The dividend rate is close to 5%, and we continue to lead the industry in the dividend rate. In terms of our plans for recovery and recovery, we have actually completed them in the third quarter. With the tough spirit, I don't know what it's called, of the war, we decided to take the road with another stage in the emergency plan, and Biran will talk about it later. But it's recovery that we actually advanced from next year, and we feel that we will continue in this direction. Of course, we have all kinds of challenges during the war. You know that because we joined you. Basically, the biggest challenge is people with disabilities. Right now, about 70% have recovered from disabilities. So our challenges in supply, production, and so on, no longer exist, or exist on the lines. What remains, of course, is the Red Sea, the issue of lines, which is not only our challenge, but everyone's challenge. On the other hand, it is not only a challenge, but it will also lead, probably, to easy prices. We can already see that this is happening, and it can happen in a set. If there is no change in the situation, of course, the change in the situation can be relatively quick. Regarding the long-term view of the trade, if we look at the past three years, we see that all our prices have returned to the normal trade after the end of last year. The weakness in the last year was in the industrial sector, where the profit margins are very high. So when we lost profit there, and we split in prices and in profit and loss in other bonds, then in the end we had a loss in profit for the nation of 2021, and of course we hope to fix it very quickly. You can see here the rate, a very strong, continuous rate, due to the rise and fall in the recurring rate. In the first place, if we look at the three years, we see that the $800 million is the average rate of the free rate in these three years. The cap is also relatively stable in these years, and therefore, the difference between the medical rate and the free rate is relatively constant. So if we go back to the industrial line, here in the BROM sector, as you know, it's weak in the electronics and construction markets. First of all, we see a certain return in electronics. In construction, we see a much higher demand, and we also expected that. First of all, we are currently... We are focusing on the strategy of aiming for a maximum production in our existing long-term trade. In other words, we are taking back the market share. It is good for us to be strong against markets that are weaker and are struggling to survive in the current economic crisis. We, of course, have the advantage of lower interest rates in the Gulf, and we are saving it to increase the market share. We saw that in the third quarter we reached some kind of drop, some kind of drop. The fourth quarter is already rising. We see that the EBITDA rose by 30% between the third quarter and the fourth quarter. It should also be noted that there was a very strong year in the flow rates. After all, there was a C both in prices and in profitability. page down. When we look at the phosphate allocation, after all, we had a strong year, we are going to increase the package of specialties on a commodity basis to this level, which we have already reached in our program, where we are at almost 70% specialty, and we basically said that in the second quarter we are at 70% specialty, so the allocation is provided by special products and the commodities we sell. The commodities we sell are the rest of the production in the capacity we offer, and we offer all of our capacity. In terms of food, the markets were strong, the prices held. We continue to sell material for batteries. Our plan for the long-term market for the world of cathodic material for batteries is progressing well. In our joint agreement with China, we also saw strong results, and we have also established two new commercial businesses in the field of specialties, and we continue in this direction. First of all, we see a return to the numbers of 2020 and 2021, both in terms of prices and in terms of profitability. EBITDA is 24%. I did not note that in the industrial line, with all that we had in the year of Sheffel, we were at 23% EBITDA. not only when we think that we are on the rise. On the subject of phosphate, there was also a slightly different demand for phosphate doses in Brazil at the end of the year, so we increased prices a bit from 2024 to 2023. So, the same amount of $20.5 million went from 2024 to 2023. This is one of the reasons we did a little better than we expected in the fourth quarter. In terms of the stock, the stock prices have settled. In fact, the prices in the fourth quarter were very similar to the third quarter, and so was the stock market, very similar to the stock market of the third quarter. It should be noted that in December and January, there were actually low prices in Brazil. This is not the case in Brazil, and the prices and demand have relaxed. But it should be noted that in recent days, prices have started to rise in Brazil. We see a strong rise in the market for buyers. There are high demand for trade, and it looks very positive at the moment. If you ask them a few weeks ago if we see a rise in prices, they would probably say no. But in recent days, we see a really strong rise. And considering what is happening in the Red Sea, we don't see We don't see prices falling in the east, so this is good news in the future regarding the flood. First of all, we sold more than we produced. We sold everything we could, everything we could, until the end. Of course, we suffered a bit from the war, mainly from the indignation of people with disabilities. First of all, we lost tens of thousands of tons of production, which is not little. because our complaints in the process were such that when systems fell, it took more time to fix them, as some experts said, we did the best we could to give them limits and we got out of it, and it's really one-off, it shouldn't happen. If we could have added this to the profit, we would have added this to the profit, but it is not acceptable to add to the profit issues that cannot be measured accurately. But we definitely went through a not simple test, to hold people in more long-term security. to deal with special repairs that the experts for these special repairs did not have. And I am very pleased with our system, that we managed to manage, and everyone was approved, and everyone was given a hand. And really, this is behind us, and regarding this, for now, at least, the other screens are not yet opened, so we do not need to worry about the future. We also have a second year completion of the profitability of the magnesium business. I told you that after 26 years, this is the first year of profit in the past year, so we also spent the year on magnesium. And I can also say that we finished selling all the results for the year 2024 of the magnesium, so the magnesium also looks like we will have a third year of profitability, and that's very promising. In terms of prices, as I said, the second and fourth quarters were stable. Of course, we increased the list of European prices significantly, especially for Brazil. Right now, we see the price a little lower than it was in the fourth quarter, but we see that it is on the rise because there is no market in which prices are currently falling, and there are directions of rise. From the point of view of the growing solutions, the special changes, here we did not exactly follow our plans in the fourth quarter. The two main reasons, one is of course the war, which lowered the demand and the ability to sell in Israel, which is relatively small numbers. But what else happened is, due to air pollution, the application window in Europe Excuse me. In this context, I will soon mention that we have also signed a contract for this ship in Brazil, a contract that we very much wanted and are very excited about, which helps us to increase the production capacity in the field of biologic additives for printing. We also received a briefing today in parallel, so you can see a little bit more in detail. We were able to produce more than a million tons of polysulfate in our warehouse in Bulbi, one of our goals, and we also increased market share in Brazil and China. In China, our market share is still very small, but we are doing well. And in Brazil, our market share is large, and we are continuing to increase it, and our activity there is doing very well. We have also managed to establish new products that are still small in terms of sales and profit, but they will grow in the near future and we feel comfortable. Regarding existence, we have really exploded with many achievements this year. I am very proud of each and every one of these achievements, but I will not comment on all of these things. I do want to note that we managed to reduce our supply chain by another 4% this year, which is already 22% since the year of the foundation. Our external commitment is 30% to 20-30%, so it seems that we will reduce it. And it goes directly to us according to the programs. In Israel, the hardest part for us Because the plans we have in Israel are very difficult to get all the regulations, the profit institutions are very, very slow in Israel. I hope it will change, and then if we don't have a backbone, it will rise less. There is definitely potential for it. It also does us good, because our products, as long as they are classified as green, it helps us with the customers, especially with the special products. In addition, I would like to point out the upgrade that MSCI has made to our DIRUG, our existing DIRUG. We have moved to Triple B. We want this year to reach level A. We are definitely worthy of it, and we are in very, very small gaps there. We must also note this year that the interest rate range, due to the existence that we took in the first part of the year, of 1.55 billion dollars, which replaced the old interest rate range, which was 1 billion dollars, we increased our financial capacity, we did it perfectly, before the difficulties that were during the year in the markets. And now that the rates are falling and we are creating sponsorships, and we have the opportunity of purchasing in the market, and with the growth of new businesses and the establishment of new stores and so on, it has put us in a very good position. In terms of business development, I told you just now that we sold a purchase in Brazil, There are many things on the table. It is very encouraging to see that we have succeeded in such a short period of time to receive the first decision in the cadence of Uri Perlman, who joined us as the leader of M&A. We are also continuing to advance the solutions of our AI, especially through Our subsidiary, Agmatics, the startup that we founded within ICL, which is now a global leader in field trials and the use of quantum intelligence, and maybe in the future we will be able to carry out synthetic field trials, without even being in the field itself. And, of course, we took advantage of this year to establish our new products through new partnerships, distribution partnerships, such as our fruit-mag product, which deals with the maintenance of fruit and vegetables. We signed with European Mobile and put it in a good position for next year. We have already announced the establishment of our pilot operation for cathodic material. The goal is to make a qualification for future products, for the storage of batteries of our customers, which we are still dealing with, in order to turn our customers into manufacturers for them. And this allows us to advance our research and development capabilities, our ability to work together with our customers in order to adapt the product to their needs. And we are trying to establish this center in less than a year, that is, to complete it before the end of 2014. And if so, it will be a significant achievement, and it will put us in a leading position in the United States, at least in this area. We continue, of course, to be in contact with customers. We have already notified the first customer. We have already signed with the second customer. I assume that things will continue according to the plan. In general, we are building the company in the direction of two very significant goals. One trend is related to environmental protection, which is becoming a more and more central issue, as there is more population and less land where it is possible to lose the land. Today, we are consuming, according to research we did with a foreign aid company, an average of 400 million people every day. i.e. our food, and our food products, which provide food, and provide food supplies, allow 5% of the world population to live. And when you, as owners of our businesses, look at our work, remember that in the end, every employee of our company got up in the morning to eat 5% of the world population every day. And you, as owners, are partners in this and can enjoy the industry, but even more so the fruits, because this is a trend that is growing and gaining importance, and there are not many companies in the world that are able to adapt to these data. Also in the matter of energy saving, we are talking about a significant global trend of the transition to green electricity, We intend to enjoy this movement and do everything we can to make it happen, both in the field of biochemicals and biochemicals, as well as in the field of electrical equipment, and also in the field of air pollution. But not only that, but also in the field of phosphate, where we are promoting the use of cathode materials, and we are becoming a leading producer in the United States. And of course, we are also currently organizing for Europe together with partners, and when we can talk about it, we will talk about it. The idea is to prepare the company in such a way that it will have the solutions, the manufacturing companies, the ability to sell, and mainly the ability to cooperate with customers in research and development and in product development, so that the inflection points of these platforms will arrive, And we see these things happening in the 20th, 26th and 27th. When there will really be a large number of requests on the part of the IDF that we are ready from all directions to serve these requests, to take the market share and to create leadership. That is where we are aiming, and that is what we are doing, so that we can manage the daily business Contrary to our competitions, we are also involved in programs and events, and every time we come to talk about revenue, we mainly want to prove to you that we are doing everything we can to advance our programs and stand in the long-term programs where the real value is created. And here I will stop and just say, as always, thank you to all our employees and managers, especially at this time, who have done above and beyond in levels that are very difficult to describe, also to make sure that we are in the design plans, also to maintain the social status, also to volunteer in the community and do everything possible to help those in need. The society did not give up on any effort. We are very, very focused in the south, and everything that happens in the south affects us mentally and emotionally, and we did not stop doing everything we could to help our communities. and our employees really enjoyed it, and I'm very proud of that, that in addition to businesses, we were a very significant factor in the State of Israel, in getting out of the terrible pain that we are all in, and in trying to help those in need. In the end, we are one nation and one state, and we represent Israel in the world, everywhere. And they do it with great pride and with tremendous strength that comes also from our industry in the south. And here I want to pass the mic to Aviram who will focus on the financial issues.

Please, Aviram.