ICL Group Ltd

If you want me to finish the question, I will answer the question in the message I sent you. With us today, Raviv Choler, President and CEO of ICL, Aviram Lavs, CEO of Pesafim, and Elad Aronson, President and CEO of the company Nekhna, who also took part in the conversation. Before I bring the conversation to Raviv, I would like to ask them, as well as historical documents that have been published, all the data and the reports that were recorded in the conversation today, to present the future, including risk and uncertainty. The consequences for the company are likely to be different in a material way and of different causes, as they are described in the company's article and in the book. I will now bring the conversation to Raviv. Raviv, please.

Good morning everyone, and thank you for joining us again. We are pleased to talk to you about the results. Again, a complicated morning in our country, but there are many complicated days in our country, and after the lockdown we decided not to move the chat, but we will try to live in temporary settlements. Anyway, regarding the year, the year ended with 6.84 billion dollars in sales, 1,669,000,000 EBITDA, 21% EBITDA and 38 cents for compensation. Pesach kol ha-shana imshicha, gam b'rivon ha-revim, momentum ma'od chiuvi b'chativot shal ha-specialties. Tzach la'azkir shachativot ha-specialties, esh b'hem onatiyut b'rivon ha-acharon, v'lachem b'rivon ha-acharon tamid yesh elshi yirida, aval yita pachot yirida ma'asher b'derech klal. And if annually we went up by 8% in the results of the specialties, then in the quarter it was even 20%. Remember, all year we were under a drop in the price of the stock market. It continued in the fourth quarter as well. And right up to the end of the year, close to the end of the year, we saw that the prices and prices for the next year are starting to rise. And then we also stopped external prices. And we saw that it is really possible to expect 2025 to be a little better in terms of the stock price. As always, this trend is very, very strong. It will continue this year, despite the drop in the stock price. The dividend rate of 3.8% is very similar to previous years, just 242 million dollars dividend this year. We signed very beautiful agreements, including future partnerships, both in manufacturing and in distribution, and also partnerships for the development of new products. And I think that in such a year, we need to emphasize even more than anything else the fact that we had a war year with quite a few difficulties and complications, to no harm to customers, to no harm to customers, as a result of a momentum of development and introduction of new products to the market. And most of all, as I said, a positive momentum for 2025. We must remember that the war will affect us extensively, both in the shipping through the Red Sea, They are on the verge of being filled, which will greatly affect our production and supply chains. Some of them are from countries, markets, universities, and all kinds of things that are happening to them in the news. We have experienced them. We have also experienced demonstrations in certain sites of our world. And to look after a year and a half, when it seems that the future is a little more bleak, at least in terms of the international situation at the moment, And to think about all the things we've been through this year, and to see that we've been through a year almost without disruption, that's, I think, the biggest achievement of this year. And again, we're heading to 2025 with positive momentum, with... Even with hashtag prices at an uptrend. A few graphs, as always. As I said in the specialties, 20% uptrend, uptrend against uptrend. It could have been even a little bit more, but at the end of the fourth uptrend, we also experienced a dramatic uptrend in the rest of the dollar and real estate. The Brazilian real estate is very poor at 1%. And it will also affect the results of the fourth quarter. But overall, the fourth quarter, as expected, with the fourth quarter adjusted EBITDA, is very, very good for the year that has passed, despite a drop in the stock price. Remember, once again, specialties are important. So to reach that EBITDA is really an amazing achievement when it comes to the cancellation of the effect of a drop in the stock price. וכפי שאתם רואים, דגשת תזרים מזומנים, החברה התזרימית, התזרים הטיפולי בריבון הרביעי היה זהל התזרים הטיפולי בשנה שעברה, וזה אומר הכל. חברה חזקה, חסונה, וממשיכה לייצר מזומנים, ואף ביתר סט. Let's go a little bit to the bonds. So in the industrial bond, first of all, the stock prices are low. We are in the strategy of increasing quantities and market volume. We succeeded in the strategy with partnerships and additional partnerships. At the end of the year, we also signed partnerships in the field of production, which allows us to create a partnership with partners, one of them is North Korean, the other is American. This means that it is another boost in our businesses and also a captive market for our BROM. The results have already reached the fourth quarter, with significant improvement in profitability as a result of the increase. We also made a little more money in the fourth quarter in order to stand in the prices of the beginning of the year, prices that are usually low at the end of the year, but we started the year of 2025 very well. First of all, in the field of special minerals, there was another good and strong year, And what else happened at the end of the year that was positive is that as a result of the anti-dumping processes that we started in Europe and continued in the United States, we were able to establish a very well-developed It's a turning point that is not in danger of what I call a dangerous product based on existence. We are actually producing or replacing a Chinese product that produces anti-dumping solution in Europe, which has already been produced. There have been trade barriers in Europe and we have already succeeded in starting to increase the prices in the fourth quarter. In the United States, there is a process that is pending, it has not yet ended, but our two customers have already established their manufacturing systems in order to receive our new product. And this means that in foreign products, after a very long period of stagnation and very, very weak prices, we have a new product that has entered the market, and this is a very positive thing for the future. I don't want to expand too much, but Eilat has returned to operation. and also other factors that affected us in the course of the fight, we see the light. It should be noted that the difficulty that arose for us in the war as a result of the flood days, the change of structure and the lack of security, and the drama of people holding central positions for a large part of the year, have taken us out of our regular management schedules. And therefore, for a very long time, we have not been working in full and regular management schedules. And this concerns us, and it also makes it easier for us than usually. And that's one of the reasons for the higher price that we gave next year, because to go back to management losses, it's not a bang and we're done. Not all the people who are paid have returned to us, and the needs for recognition in the field are very, very significant, and therefore... We are planning with a very significant plan to return to full construction plans until April. In April we have the annual construction break, and this is an opportunity where we can do very significant things at the same time and return to construction plans. And I hope that after April we will be more optimistic about the construction. This year we created a little less than we planned in the Sea of Salt. We created around 150,000 tons less than we planned and planned. And we hope to return to the normal production pace of the last few years. But as I said, we will be more confident after the production is over and after we see that we will return to full production. In phosphate, a very good year. In all, despite a decrease in prices of white cotton, which is a main component in our prices, we succeeded by discovering new quantities and introducing new special products. and by cutting expenses and increases, and the decrease in raw materials, which gave us a negative effect, we were able to recover the results of last year in the bottom row, despite a certain decrease in prices. We know that the fourth quarter is relatively good in prices, and we were able to do many more things that will advance us in the future. to many in terms of our programs in the field of batareo, As you remember, in order to manage more safely our investment plan around the batteries, we decided to establish an innovation center and qualification center in the United States. Within less than a year, we established a working company that has already established its first batch and is actually starting to work with customers on the qualification of future products. It gives us certainty regarding our ability to become a significant player in the American market. We also had uncertainty around the change of government in the United States. Of course, there are open questions. What will happen with the funds that were promised to us and so on? At the moment, it looks very good. Again, we have our big decisions on CapEx assets. We are waiting until we receive bold decisions after conclusions with future customers. Likad Sofar Yvonne, כפי שדיווחנו, חתמנו על עסקת שותפות עם Dynanonic, שהוא השחקן מספר שתיים בעולם בחומר קתודי לבטריות, והוא גם הלקוח העיקרי שלנו בסין. And our intention is to manage a strategic plan together with Dayanonit to become a central player in the European market. Also there, we are still at the beginning of the road, working on planning plans for a first operation in Sephardi on our website. And of course, we will guide you in the future. Regarding growing solutions, so overall progress is very, very good in the region. The results are a little less good than we expected, mainly because of the situation in Brazil and a certain number of countries which is present in Brazil as a result of the economy of soy farmers, which is currently in a certain improvement. But overall, the economic situation in Brazil and the high yields are very dependent on farmers. The number of crops has grown and we need to be a little more careful. And as a result of this haste and the objective conditions, it is a little less than we expected, but we are still moving forward. . . . . . We also did three small M&A deals, two of them in the last part of the year, that strengthen our position in certain niches in the market. And also, as you remember, we entered one of the first two and a half years of the year, we entered the field of the biological years, where the potential is huge, and we are looking forward with a very high expectation regarding this field. So to sum up for you how Rivaon looks, and this year, after all, we continue in our program to increase, to increase our activity, our market share and our leadership in all three bonds, which are specialties bonds. We succeeded in it this year, and we are looking forward to the next year. We are looking at the year with a better, more significant outlook than we had last year, and that despite the fact that most of the prices have dropped since last year. At the moment, we do not see price drops in our markets, and therefore we are looking at 2025 as a positive potential for improvement. We created this year, like in previous years, very strong invitations, and we will continue to emphasize invitations. We expanded our partnerships and opportunities. I gave some examples, whether it's with manufacturers in the field of Brom or customers who sell production lines in the field of Zarchan. A new business with Dynanonic is leading in cathode material. We established two new development centers together with partners in Brazil. וכמובן גם הרכישות שעשינו לתחום הספיישלטים זה מדגש על תשנים מיוחדים, מדגש על תשנים ביולוגיים. We promoted our programs in the field of batteries, so I talked about the new partnership. We also won a new award from the European market, by recommending the Spanish authorities. At the moment, we have received 18 million euros. We have reached a very significant award from the European Union, and we will remind you when we can and we have new ones. And of course, as always, we paid an honorable dividend, the highest in our market, between the competitions. And in total, if we sum up the years 2020-2024, then again we achieved results that are better, more significant than our competitions. Again, it was a very, very difficult year in terms of environmental conditions, with prices falling in all areas of our activity, which is no longer the case for 2025. And despite that, we managed to end with a positive result, and a positive one for many of our competitors. On this occasion, and before I move on to Aviram, I would like to thank you for bringing me in the last 28 weeks. I have always had great pride in being in the leadership of this company. As you know, I will be finishing my job in about two weeks. I really enjoyed your dialogue, your questions. I think you know us very well. We are a transparent, valuable company that does everything to provide you with everything we know and know. The company is strong. It has a great staff, a great leading team, and I look forward to very, very good things in the future. I'm happy and proud that Elad Aronson, one of the leaders of the successes that we had in the last few years, Elad Niel, in the last four years, He's a strong manager, assertive, responsible, he knows the ICL business very well. We had a good period of time, in my opinion, and a great one. And I very much believe in his ability to take ICL forward and lead us to further successes. So, Elad, I wish you great success. And Elad will be with us here at the question time, so you can also ask him directly and get to know him a little bit. And for now, until we get to the questions, I want to move on to Aviram, who will remember the financial side.

Well, thank you very much, Ravi, and I want to move on to a number of macro data. I think it's very, very important to understand the company in context. of what is happening in the global world. There are only a few things here, the main things. There are many other factors that are not expressed here, geopolitics and so on. Two very interesting things. This is the high trend, this is inflation around the world, and as a result of this, the fourth highest in the world. And we see here an interesting phenomenon, what is called the stickiness of inflation. On the one hand, inflation is greatly decreasing. On the other hand, She is not able to go down to the levels that the central banks give her, the comfort of going down in fourths, even though in some of the countries there are fourths, in some of the countries there is a fourth rise. The place that stands out the most, please look at the slide on the top right, is Brazil, which is a very important country, the most important agricultural country in the world, It's a big factor for all the other countries. And there, in terms of inflation, the inflation is high. The government there would not have been comfortable with the situation. Some of the procedures that are being done by the Brazilian Central Bank are very strict. If we look at the bottom line of the macro data, We see here, on the bottom left, the global industrial production. Now, what is interesting to see is, on the one hand, this trend is, in a way, improving. On the other hand, we are in a world where part of it is the high prices, and there are other effects. The world, on a large scale, ולא עולם שמרשה לעצמו כמו בשנים לפני 2020 לרוץ קדימה יותר מדי וזה משליך על מלאים, זה משליך על just in time, זה משליך על הרבה דברים נוספים. סך הכל זאת כבר בעיה שאיננה עקוטית, איננה היא כבר כרונית והעולם כמו העולם תמיד לומד להתמודד עם התופעה הזאת. תופעה שאנחנו רואים נוספת וגם פה יש השלכה גדולה Thank you very much. And as a result of this, in the end, we saw a trend of improvement in housing starts in the beginning of the building in the United States, but this trend did not continue into the first quarter of 2025. We'll see where it goes. In general, of course, there are no slides in this presentation about what is happening right now in the United States, but it is happening there, as we all know, a real drama. If we continue directly to the world of our farmers, of fertilizers, we see that in terms of commodity prices, the farmers, we ultimately see a trend that is part of the prices already in the uptick of growth. Shabbat shalom. As a result of the prices of commodities, we see the sentiment of farmers. Now, what is written here is the upper right side. This is the sentiment worldwide. Of course, in the different geographical areas, there is a different sentiment. This topic is very important. We have talked about it more than once before. All in all, we see that this sentiment is improving, and this is of course important. Because from this sentiment, decisions are made, a decision or not a decision, of the farmers. At the end of the day, we are watching a better environment in the future, within 25 years. If we look at the prices of the central commodities, which are both potash and phosphate, here we see a very interesting phenomenon. After many years there was a high correlation between the price of ash and the price of phosphate. We see, in fact, in the year 24, the decline. We see the price of the stock that continued to fall in 24. In 25, the situation is already different. We already see the beginning of price increases. But the phosphate, we see that during the year 24, it was stable with a certain rise. Why is that? The explanation here is simple. It's the operation of SIN. Of course, the production sources between the slag and the phosphate are different, and the central player that causes that price increase, especially in the agricultural commodities, in the phosphate for the agricultural commodities, is SIN. And that's why we see this increase. From the point of view of the carrying price, it's a right-hand side down. We actually see a lot of changes in recent years, in the last year, We, in particular, see a decrease in the cost of transportation. We hope that our region, as Raviv has improved, will enter a more relaxed period, and we will enjoy that. Of course, this has a certain impact on us as well. If we look at the world of energy saving, here there is also a division between the electric vehicles and the batteries that generate energy. You can see the development that is expected on the upper left side. You can see the division between the electric vehicles and the means of transportation. You can see that the means of transportation are rising in a straight and continuous way, and this trend is also continuing. Even regarding the electric vehicles, the cells that will assemble the electric vehicles, we see that this trend will continue, but around this regression line, there are very high and low expectations. כמובן שפה נגזרת למה שעושות המדינות השונות, ההתייחסות שלהם, החסימה של סין בשווקי ייצור וכדומה. אם תרצו, באחת השאלות תשאלו לגבי זה, אז נפרט עוד. אם אנחנו רואים מה קורה באירופה, זה צד ימין למעלה. אנחנו רואים את אותה תופעה, תופעה של עלייה. If we look to the bottom left, at the world of the MAP, It is also advancing over time, and the world of phosphat, which will require LFP, is also increasing. You see the progress and the growth that is expected in the coming years. This is one of the explanations for the gap between the prices of green fuel and white fuel, the prices of green fuel, the prices of commodity phosphat, as I explained earlier, The white stock prices in a certain extent fell this year, mainly, and we also talked about this in the past, on a large construction of capacity during the massive entry of the 1,000th in the coming years, when the manufacturers build additional capacity, and right now there is an increase in capacity in the market. If we do, by the way, the analysis of the prices, and we will also try to do it for the health profit, according to segments, and also according to categories, we see, I think the most correct way to look at it is first in the right part, we see that in the previous year we sold about 7.5 billion dollars, and this year about 6.8 billion dollars, In terms of quantity, we went up, we went up even significantly, about $400 million, and against the decrease in prices, of course, the number one cause was the protest, as you can see immediately on the left side of the screen, but overall, we dealt with a decrease in prices of over a billion dollars. When we see it in the division, according to the different categories, we, as you can see, as Raviv said, we will get to the profit, we overcame it, but this is of course a massive decline, and it will not go forward. There was also an effect of the other alternatives, and in the prices, it was not effective in the profit section, but before you, first of all, the analysis of the prices. If I continue and go into the profit, the more interesting part, we see at the end of the year, we'll talk later also about the profit itself, We see on the right side again that all of the society's complaints were positive in quantity. The effect on the medical benefit of the major positive complaint in quantity. The other alternatives, as I said before, are ultimately influenced by the positive benefit. Thank you very much. As I said before, mainly in the potash and also in the additional nets. Shabbat shalom. Shabbat shalom. You can see on the left side also the division according to the combined numbers. If we look at the profit analysis, again, on the right side, we see that the company, despite the significant decrease in price, has managed to maintain its value on the fourth quarter of 2024, in front of the next quarter of 2021. It did so as a positive statement in terms of the amount, the effect of a positive statement in terms of the amount, The positive impact on the raw materials, the energy, we saw this earlier, I won't go into more detail. All in all, the message here is that the company has managed to overcome many obstacles, including the decrease in prices, and to maintain its global profit, its medical profit. She did it, by the way, mainly due to an improvement in her profit percentage, which you can see here, what was called in the past the quality of the business, which was definitely good. Our concentration is significant in the profitability of the different products, and on the left side you can see again the division according to values. If I move on, this is a slide that you know, and that's why I'm very short here. We also see ourselves in front of our competitors, in our ability to navigate and to produce at the end of the day, more effective and better price lines. It is mainly due to our coordination between the different geographical areas that the community is involved in, and it makes an optimization of all the area, and therefore I advance and say, I assume that it will also come at the stage of questions, that in certain regions, She can also be in a situation where she is already forced to give, where she previously refused to give, and so on. And therefore, I say, this observation is what is relevant to me. It is much more than just observation, it is a multidimensional observation, or an annual observation, and beyond that. If we look to the left, we see that, after all, in terms of our efficiency in the Gulf Sea, it is in the lower quarter of the world, and at the end of the day, we are enjoying a good cross position in the price of the iceberg. מה שאנחנו רואים פה זה גם את ספרד, וספרד שלנו על פני זמן הולכת ומשתפרת, עולה בכמויות, וכמין הסכם גם המחיר, הקוסט שלנו הולך ויורד שם. When we look at the BROM, again, this is a slide from previous presentations, and you know it, we are the largest and have the best cost position in the BROM. You also saw the results of the integration of industrial products, which the BROM is a significant part of the integration. At the end of the day, we are dealing with an environment that for several years has been with limited requests, or relatively limited requests, If we look at everything from the point of view of our society, If we do our geographical analysis, and also according to our businesses, if we look from the left side this time, to the geographical areas, we see that the society is very balanced, and it definitely helps it, because the geographical areas, at certain times, behave in a way that is very balanced. We'll be right back. We'll be right back. From the point of view of a number of data that we choose to emphasize from a financial point of view, this also relates to what Aviv said earlier. From the point of view of the financial stability of the society, it is very high and it has means that are standing in front of it to do everything that it decides to do. And they are over 1.6 billion dollars. There is a low interest rate ratio of 1.2. It is always divided by the dividend, as we all know. It focuses very much on the creation of cash. And Raviv said the number for the years, the numbers for the years 24 in total, including in the quarter, were excellent numbers. It continues to focus on the loss of assets. And she checks herself all the time regarding the location of her capital, also in the treatment of the return home, also in the treatment of investments, and also in the treatment of purchases. I'll move on to the end of the presentation. Raviv showed you the return of the company. This is a slide, by the way. It's not systematic. It's usually not shown in presentations. But this time we chose to add it. Raviv showed you the year. And I'll show you the cadence. And what we see is that in the seven years, there is a very large difference in comparison to the general return. של ICL לעומת שלל המתחרים שלנו. אני מניח שאתם מכירים את כולם או את חלקם, Nutrien, Yara, Mosaic, SQM, KNS הגרמנית, Albemarle וLanxess. אנחנו נמצאים במקום לגמרי אחר. אנחנו נמצאים בריתרן שבע שנתי של כ-110 אחוזים, כשהמתחרי הכי קרוב נמצא עם פחות מ-40 אחוזים. I think it's a slide that if you look at it for a second, every word beyond that is more. And now we're getting to the guidance, which I assume that there will also be questions for you. We continue with the same technique or style in which we presented the guidance also for the years 1924. By the way, in the guidance for the year 2024, we reviewed it twice, I remind you, and we stood by it very nicely. As for the year 2025, we again choose to present our guidance to all businessmen of the company, to the point of the opening, and the opening that we present in terms of quantity, from the understanding that with our size in the market, עם ההשתנויות הגדולות בשוק, אנחנו יכולים לדבר על כמויות בפוטש ולא על המחיר. אנחנו נותנים גיידנס ברנג' לגבי הפוטש לבין 4.5 ל-4.7 מיליון טון. זה מתחבר למה שרביב אמר לגבי ים המלח. זה מתחבר גם לשמרנות מסוימת שלנו. אני מניח שעל זה יבואו שאלות ונענה על זה כמובן בשמחה ו... All the rest, we said, we're giving guidance of between $950 million and $1.15 billion to businesses. I remind you, this year, after two years of our guidance regarding Specialty Driven, we stood by them and finished the year over a billion dollars. in all these businesses, and this is the guidance for the year before you. I will say a word about the tax rate of the company, the annual tax rate. At the time, we gave this guidance I would say even half, soft guidance, and why? Because it was very difficult to negotiate, two years ago, two years plus, when Shishinsky came in, the agreement we made, we could be, we finished under this mass study, It's definitely possible that by 2025 we will be under this training. This training is based on two central components. Global training in each of the businesses and each of the countries in which we work. And of course there are significant differences between them. With a very wide spectrum, it depends on the mix of our businesses. And in addition, it depends on the effectiveness. Thank you very much. Thank you very much. I remind you, you can use the zoom button, or you can use WhatsApp.