ICL Group Ltd

So, again, thank you for the invitation, and welcome to the next meeting, the Zoom meeting of ICL for the third round of the Ravon Summit for the year 2025, and an update on the latest developments in corporate management. As with any conversation, you are invited to send it through the chat of the webinar. Anyone who would like to send it to me, or those who have financial problems, can send it directly to WhatsApp. If you want us to open the line, you have to sign on the handrail. With us today is Elad Aronson, President and CEO of the company, and Aviram Laav, CEO of Ksefim. Before I pass the conversation to Elad, I would like to point out that apart from historical data that has been published, all the data, excuse me, part of the data and the information that has been published in this conversation brings information to future viewers. The information is related to the Bonn Institute only. It is based on the recommendations of the administration and on the knowledge of the guest standing in front of the Institute of this conversation. Elad, please.

Thank you. Good morning to everyone. Thank you for joining us. We are happy to be here in the third quarter. Overall, in the country, we have had a quarter, I think, better. Weeks, most of them have returned. And we are looking forward to the return of the other space quarters. Here at ICL, we will take advantage of this meeting to talk about three things, beyond the results of the quarter, which of course we will share with you. We will also expand on the issue of the memorandum of understanding in relation to the Zikayon Yamamelach. And I will take this opportunity, after a few months in office, to also discuss with you the basics of the strategy as we discussed them. Then, I will say in advance, this meeting will be a little longer than usual. I would like you to stay with us until the end and, of course, we are waiting for your questions at the end. Okay, so we'll start with the third quarter, the quarter that ended. So, the company's prices ended at $1,853 billion, an increase of 6% compared to last year. Specialties Driven, the special products, the general company for the time being, the offshore activity also increased compared to last year, 4%, and an increase of 13% compared to, excuse me, In contrast to last year, we will talk about the 13% in relation to the loss. The special added loss amounted to $398 million. Here, there is an improvement of 13% in contrast to the previous quarter and 4% in contrast to last year. The added profit is $0.10, and the interest from the activity is $308 million. Shippur ka'al shel 40 milyon dolar, le'umat ha'riv'on sha'avar. Besach ha'kol, riv'on tov la'chevra, le'lo afta'ot miyohadot, pachot yoter kmo'a tzipiyot shel'anu. From here, I want to move on to the bonds, to the different sectors of activity, and I will start with the sector of our industrial products, which presented in this quarter an improvement in the EBITDA. The EBITDA increased by 67 million dollars, with a slight decrease in prices, in contrast to the current quarter last year. The prices of the Brom have increased, they have increased also compared to the previous price. When we look at the field of bee colonies, here we see slightly mixed results. Bee colonies that are native to Zarchan have flourished and grown. On the other hand, bee colonies that are native to Brom have shown less good results. This is mainly due to the weakness in the edge market of construction and mining, which bee colonies native to Brom, among other things, contribute to. That's it. The area of the pipeline for the production of oil and gas was in order. We had a strong reputation in the area of the special minerals, mainly in what serves the end of the food market, and we will talk about the food later. So that's about this initiative. From here, I will move on to the inflation rate. The inflation rate showed prices of $453 million, mainly thanks to an increase in the fixed price of the inflation rate of $353.00 per ton, in contrast to $333.00 in the previous quarter and $297.00 in the consecutive quarter last year. Maybe the happiest thing, I think, in the activity of our coast area is the beautiful improvement in the amount of production. I talked about it in the previous report. We had difficulties there at the beginning of the year, and in this report we can already see the rise and the stagnation, both on our website in Yam Amelach and on the website in Sefarad. In this sense, this is very encouraging. I want, excuse me, from here, I want to pause for a moment in the brief discussion and address a topic that many of you have responded to in a certain way. On the last Thursday, we published the basic document signed with the state on the issue of the sea of salt. In the end, I will say that we see this basic document as something positive and as such that creates certainty and clarity for the long term, allows the society to carefully evaluate the end of the fiscal year 2030 and, in our opinion, will also improve the status of the future declaration. Look, as with any significant event, even in the current situation, at the end of the election, there are relevant alternatives. And I will try to explain our assumptions a little. I assume that everyone knows that the state is planning to call for an audit, and has already issued its position, also in a letter, that it is interested in going to a declaration, and that it also intends to focus on transferring the assets of the property to its owner at the end of the property period, as stated in the law. According to the law, for our society, there are two main rights. One is the right to advance, which we also call the right to exchange, and the other is to receive compensation for the loss of the property. As soon as the state progresses with its responsibility for the future resolution, when it is under great pressure to improve the status quo, we have seen that it is right to reach high-level agreements in the face of complex divisions, and to avoid a situation in which the state is focused on one-sided moves for many changes to be made. And I will say already here, this is not some theoretical or science fiction statement, this is what it is about. If we were to insist on the right to advance, in addition to dealing with legal procedures imposed against the state, which does not have any certainty about their results, we estimate that what would happen is that the conditions of the future economy would eventually be more severe afterwards, and the assumption would be that we would stand alone. In fact, in this context, the state did not have any real incentive to create protective and logical economic conditions. At the moment, when the declaration is open to everyone, in our opinion, this step will lead to much more attractive economic conditions. In addition, we have created certainty for the acceptance of a value of about $2.54 billion. On this, we need to add hundreds of millions of dollars to the budget of the project. In total, without being forced, we are talking about something in the area of $3 billion. Not less important, we also created certainty in relation to the acceptance of these funds. Regardless of the basis documents, as long as we were in a state split, the assets would be transferred to the government according to law and without us receiving full compensation in their debt, and you can ask what this does to society's investors. Such a situation would cause us to take long legal procedures, whose outcome is unknown, and in a way that greatly affects the financial and business certainty required for the management of society. One point that is important for me to follow up on, because there were a few other publications, so I want to be very clear about this. Agreements on the property tax are not expected to have a significant impact on the financial results of the society. In other words, the tax in the books is not significantly different from what was agreed upon. Those who are a little confused with this, or do not understand it that way, I am already making an exception and making it clear now. It is important to remember that we have been operating in the field for more than 100 years and know it in a deeper way than any other source. We hold a solid knowledge, practical medical experience, and a deep understanding of the area. Over the years, we have built a huge medical and logistical system, not only in Israel, which serves and maximizes the proven profitability of the industry, starting with advanced research and development, leading industries, in the desert and in the sea, a network of customers based in Israel and the world. Moreover, and perhaps not less important, we know how to manage the saltwater products in a synergistic and unique way with our additional activities. Thus, in the midst of competition, these advantages represent us as owners of a guaranteed ability to deal with the challenges and unique and complex risks in managing this type of economy, including many medical, business, engineering, geological and environmental challenges. I would like to say something in a broader context regarding the competition. I assume that the state also wants an economy based on natural resources that belongs to the Israeli public to be operated by an Israeli society and under Israeli ownership. This is the sentiment in the Israeli public and it can be understood. I also assume that national security measures will be taken into account when it comes to national security and a site that covers dozens of kilometers of complex border. And believe me, it is very complex. In addition, it is clear that the Zakiyan must be strong and financially stable and operational, in such a way that it will provide business certainty to thousands of the residents of the Negev for decades to come. This is the time of the Zakiyan that is being discussed. Very few Israeli companies, if at all, have proven experience in such trends. In the bottom line, we have targeted a chain of head-on agreements on the part of divided and extended legal processes and one-sided moves on the part of the State that are likely to harm our rights. In addition, we have increased the chances of more robust and balanced conditions for the future economy, on the part of comprehensive conditions intended for a society that is alone. Therefore, in our view, the society is more likely to have the highest chances of being the owner of the future economy and to produce from it the wide economic competitiveness compared to other potential competitors. All of this, of course, in the hope that the new economic conditions will be economic. So until then, on this subject, of course, I would be happy to take questions at the end of the presentation. From here, I will return for a moment to the brief discussion and move on to our next letter, the resolution of the phosphate. This letter was also a good review, an increase. In terms of prices, at $605 million, which is 5% higher than last year, prices have increased due to higher quantities in the specialties category and higher prices in the commodities category. The EBITDA fell slightly compared to last year. The main reason for this is an increase in raw materials, in raw materials prices, and mainly a significant increase in wheat prices, which may have been one of the main things that occurred in the field of raw materials in the current quarter, and will continue with us in the fourth quarter. Phosphate solutions for food. Phosphate farmers have registered their strong desire for it for two years, and this is in continuation of our strategic implementation in the food sector, and I will also elaborate on this later. Regarding the activities in China, in the Joint Venture in YPH, all in all, good requests and good prices, including an increase in the request for waste materials, a sector that we will continue to play in, also in the future. So that's about this offer. And the last offer, the growing solutions offer, so here as well, good growth in terms of prices, an increase of 4% in the top line versus a decline, with a very clear strategic focus on global solutions that are specific to customers according to the location. The main thing that will affect profitability in this quarter is Brazil. The third quarter, in terms of agriculture, is the strong quarter in the southern part of the country, and within that is the Brazilian market, which we are very strong in. The Brazilian market suffers from a lot of pressure, also high market levels. There are also some weak yields in the world of soy, and in general, the farmers' affordability this year is relatively weak in Brazil, and this may have been the main parameter that affected the results of this trade. On the other hand, in North America and in Europe, we continue to see growth and improvement in profitability. In Europe, this is mostly due to a change in the portfolio mix, something that we are working on in terms of the strategy, more special products, bio-stimulants, CRFs, and less other products, such as polysulfate from Bulby, and things like that. So, regarding the results of this bid, I have summarized all the bids, and here I will pass the microphone to Aviram to talk about the financial results.

Thank you very much, Elad. I am very short today. As you saw, the review is definitely a good review. And I will continue, again, I will return the talk to Elad and he will explain the previous strategy. Anyway, let's clean up the review. A few things that are worth looking at them really briefly. It's about the business environment of the company. And we mentioned here things that went up, went down. When it's green, it's good. When it's red, it's just not good. If we look first of all at macro-global data, inflation is most common in the world in the decline trend. Every geographical area with its story is definitely helpful. מבחינת היצור התעשייתי, סליחה, הגלובלי, הוא נמצא בירידה, וזה כמובן חדשות פחות טובות, תסתכלו ימין-שמאל על חברות תעשייתיות גלובליות, זאת לא סביבה עסקית מיטבית, היא לא גרועה במיוחד, אבל היא גם לא טובה במיוחד, היא ממותנת. In terms of construction, we know that in the United States we are in decline. Even in other places, they are not in their peak. If we look at the macro data of the textile industry, we see the next things that affect it. The prices of raw materials are in decline, and of course, this is not good. The sentiment of farmers, we talked about this in the past, is not as good as the prices of commodities. They are on the rise in our areas, and that is of course excellent for us. In terms of global leadership, there are various influences on us. They are on a certain level, probably not for a long time. If we look at other things, again, that affect us, in terms of the gross price in China, Elad talked about it, it also comes directly from our strategy, they are on the rise. In terms of goods in the US, they are on the rise, and it definitely helps us. And in terms of the trade of food services, global food, they are on the rise, and so are the US. In short, if we look at this slide, we will talk about the increase in prices, and in the next slide, we will talk about the increase in demand. We see that on the left-hand side, we have increased our prices, and we have increased, in fact, in all areas of our activity, briefly, in industrial products. Here, it comes directly from our strategy to prefer what we define as value over volume. If we look at the right side of the slide, we see the three components that make up the increase in prices. This is the inflow of prices, the price, and the rest of the alternatives. We see that in terms of price, We'll see you next time. foreign foreign We increased the estimate from $383 million to $398 million. The next rise from the tidal wave, which Elad referred to earlier, and against the other waves, in the Abida context, we are at a certain decrease in revenue. If we look at the right side of the slide, actually at the increase in the different components that comprise it, we see this. We see a significant positive trend of price, we talked about it earlier, we saw it in prices, This is a crop that goes straight from the price line to profit. And on the other hand, its natural interrelationship is the increase in crop materials, the increase in crop materials, when the main component here is wheat. But in the end, if we take the increase in price and clean the crop material crop, we are still positive. As for the other alternatives, this is another big impact. Here we see, we saw in the prices that it is upside down here, it is exactly the opposite, and the reason is of course the relative strength of the shekel. Other coins, after all, are less neutral. We see the impact of the inflow, and we see a number of other impacts, but overall, in the bottom row, we see indeed that the growth of the company is growing, while Rivaol is continuing to plummet. And I will close this very short part of mine, and I will say this, in terms of the financial capabilities of the company, if we look at the net share of EBITDA, we are at a very comfortable ratio of 1.4. We have ordered assets and the ability to carry significant amounts of more than 1.5 billion dollars. I want to say, and this will connect you to the rest of the presentation today, which I will return to later and explain the previous strategy, We have clear capabilities to implement this strategy. In terms of the operational and clinical applicants, the revenue was over $300 million. And in terms of the dividend, we of course continue to pay about 50% of the huge profit combined with the revenue as a dividend to the investors. and that turns our yield, our dividend yield, to a little less than 3%. So those are the basics, and I'll return it to Elad. We have the guidance, maybe you'll discuss it in detail, and we'll move on from there. Thank you very much.