ICL Group Ltd. — Interim / Quarterly Report 2015

May 13, 2015

6-K 1 dp56223_6k.htm FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of May, 2015

Commission File Number: 001-13742

ISRAEL CHEMICALS LTD.

(Exact name of registrant as specified in its charter)

Israel Chemicals Ltd.

Millennium Tower

23 Aranha Street

P.O. Box 20245

Tel Aviv, 61202 Israel

(972-3) 684-4400

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes No X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes No X

ISRAEL CHEMICALS LTD.

1. Q1 2015 Results Presentation

Item 1

Q1 2015 Results Mr. Stefan Borgas | President & CEO May 13, 2015

Important Legal Notes The information delivered or to be delivered to you does not constitute an offer or a recommendation to do any transaction in Israel Chemicals Ltd. (ICL) securities. Certain statements in this presentation and other oral and written statements made by ICL from time to time, are forward-looking statements, including, but not limited to, those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including, among others, the following: (a) Crisis in financial markets;(b) War or terror operations;(c) Impacts on sales of fertilizers (product prices, government policies and weather); (d) Subjection to legislative and licensing restrictions;(e) Exposure relating to environmental protection and safety;(f) Third party liability and product liability; (g) Volatility in the markets that affects the demand for some of the products; (h) Concessions and permits; (i) Natural disasters; (j) Water level in Pond 150 in Dead Sea;(k) Dependence on seaports, transportation and loading in Israel. We caution you that the above list of important factors is not comprehensive. We refer you to filings that we have made and shall make with the TASE and the U.S. SEC, including under "Risk Factors" in our prospectus. They may discuss new or different factors that may cause actual results to differ materially from this information. All information included in this document speaks only as of the date on which they are made, and we do not undertake any obligation to update such information afterwards. Some of the market and industry information is based on independent industry publications or other publicly available information, while other information is based on internal studies. Although we believe that these independent sources and our internal data are reliable as of their respective dates, the information contained in them has not been independently verified and we can not assure you as to the accuracy or completeness of this information. Readers and viewers are cautioned to consider these risks and uncertainties and to not place undue reliance on such information.

Highlights & Financial Results * Gains from divestitures over compensated the impact of the strike * Operational Excellence activity around the world continued to progress at or above target * Most of our growth initiatives progress ahead of schedule $ millions Q1 15 Q1 14 % change Q4 14 % change Revenues 1,403 1,613 (13.0)% 1,403 0.0% Reported operating income 315 243 29.6% 174 81.0% Reported operating margin 22.5% 15.1% 12.4% Reported net income 217 131 65.6% 85 155.3% Net income margin 15.5% 8.1% 6%

Highly Profitable Investment into Operational Excellence in Israel Strike impact on net income Benefits -- continuous operational improvements Period Total ICL Total economic impact ($M, NPV) ~(130) ($M) Total benefits ($M, NPV) ~300 Q1 2015 (accounting) (76) Benefit from bromine price increase -- ~ 20 estimated annual contribution ($M/year) Q2 2015E (175) Higher than expected recovery of potash in 5-10% of production (accounting) the ponds Total (accounting) (250) Ability to implement ongoing productivity Potential upside improvements in ICL DS and Neot Hovav NPV of economic benefit: at least $150 -- 200 million

Business Environment & Major Developments ICL Fertilizers * Potash supply contracts with Chinese customers at last year's quantities with higher price * Record sales of phosphate rock, elevated phosphoric acid production and lower costs, offset higher sulfur costs -- due to results of Operational Excellence * Continued improvement at ICL UK: [] the highest production and operating margins since Q1 2013 ICL Industrial Products * Inventory position helped to moderate the impact of the strike in Q1 * Tight supply led to higher than expected increase in bromine and derivatives prices supporting recovery in 2H2015 * Launch of SAFR as the industry's instrument for upgrading bromine safety and increase innovation, to become industry standard ICL Performance Products * Food Specialty business ahead of plan due to the successful integration of Prolactal * Major divestitures of non-core businesses near completion * Business negatively impacted by competitive environment, currency fluctuations and lower fire safety sales

Significant Cash Flow Contribution from Divestitures [] Divestitures net proceeds recognized in Q1 2015 cash flow - $345 million [] Capital gain from divestitures - $209 million. Net of taxes - $156 million [] Additional potential divestitures in process:

ICL Efficiency and Excellence Initiatives Contribution -- Q1 2015 Contribution by segment Contribution by project [] Efficiency and excellence initiatives contributed ~$30M in Q1 2015 vs. Q1 2014 [] Total run-rate estimated for Year End 2015*- $240M * Compared to 2013

Operational Excellence at ROTEM and ICL UK ICL Rotem performance Green Phosphoric Acid production '000t Operating income % Sulphur price trend line Improving operations at ICL UK [] Potash production has increased by over 40% vs Q1 14 [] Polysulphate production increased by 150% [] Cost /tonne over 20% lower vs 2014 average[] Operating margins in the last 6 months about 20% higher than 2013 average, despite lower potash prices Demonstrated Efficiency at Rotem [] Average headcount decreased by 9% in Q1 15 vs Q1 14 [] Green phosphoric acid Production increased by over 40% vs Q1 14 [] White phosphoric acid production cost decreased by 6% vs Q1 14 despite an increase in sulfur prices of 41% [] Additional upside from downstream specialty products ICL UK performance Potash production '000t Potash price trend line* Operating income % * Middle east spot FOB ** Std potash Vancouver FOB

Continued Deliverance on Our Growth Strategy Growth initiatives progress -- Q1 2015 Organic Growth Phosphates Higher volumes in all product categories due to operational improvements Potash Increased production and sales from ICL UK Polysulphate On track to sell above 150K tonnes in 2015 vs. ~50K tonnes in 2014 Potash and salts Agreement signed to produce and market 1.5M tonnes vacuum salt and 50K tonnes white potash a year External Growth Food Specialties Closure of acquisition of Prolactal. Q1 sales and profit better than expected Phosphates China Signing MOU for a joint R&D center, agreement on early start-up of industrial phosphates Potash Tender offer for Allana Potash, develop a large scale mine in Ethiopia Specialty Fertilizers Plan to construct a large scale NOP (Nitrate of Potash) plant

ICL Rotem Awarded 2(nd) Place in IFA's Green Leaf Award * The Green Leaf Award is a biennial contest for excellence in safety, health and environment, held by the International Fertilizer Association (IFA) * ICL Rotem was rewarded the outstanding 2nd place in recognition of its comprehensive and innovative activity in phosphate mines restoration and reclamation: ICL Fertilizers representatives receiving the award from IFA's members In the middle: Mr. Yakov Kahlon, Chief Operating Officer| Phosphate & Fertilizers and Mr. Yigal Levi, Mine Reclamation Planning & Control Manager

Financial Results (Mr. Kobi Altman)Executive VP & CFO

Q1 2015 Results $ millions Q1 15 Q1 14 % change Q4 14 % change Revenues 1,403 1,613 (13.0)% 1,403 0.0% Operating Income 315 243 29.6% 174 81.0% Adjusted operating income 275 251 9.6% 200 37.5% Operating margin 19.6% 15.6% 14.3% Net income 217 131 65.6% 85 155.3% Adjusted net income 193 189 2.1% 108 78.7% Q1 2015 Operating income adjustments Q1 2015 Net income adjustments

Segment Results Potash Phosphates and Industrial Performance Fertilizers Products Products US$ millions Q1/ Q1/ Q1/ Q1/ Q1/ Q1/ Q1/ Q1/ 2015 2014 2015 2014 2015 2014 2015 2014 Sales 377 491 452 465 283 377 364 391 Operating income 92 146 43 30 -16 34 205 40 Adjusted 177 146 43 37 32 34 30 40 operating income Sales breakdown by segment Adjusted Operating income breakdown by segment

Potash Bridge Analysis Sales ($M) Operating income ($M)

Phosphates and Fertilizers Sales ($M) Operating income ($M) Numbers may not add up due to rounding

Industrial Products Sales ($M) Operating income ($M) Numbers may not add due to rounding

Performance Products Sales ($M) Operating income ($M) Numbers may not add due to rounding

Improved Financial Position [] Reduction of net debt by $190M to less than $2.5B [] Maturities postponed as a result of the latest club deal ICL maturities March 31, 2015* ($M) * Total debt: $2.7Bn. Avg. Interest 3% * Long-term credit facilities: $1.7B & []127M. Unutilized: $1.2B. * Exclude securitization of $305M and a short term renewable loan of $51M

Thank You

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

/s/ Kobi Altman
Name:	Kobi Altman
Title:	Executive Vice President and Chief Financial Officer

/s/ Lisa Haimovitz
Name:	Lisa Haimovitz
Title:	Vice President, General Counsel and Corporate Secretary

Date: May 13, 2015