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☐
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REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
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☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2020
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Date of event requiring this shell company report _____________________
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For the transition period from _________________ to _________________.
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Ordinary Shares, par value NIS 1.00 per share
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ICL
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The New York Stock Exchange
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Title of Class
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Number of Shares Outstanding
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Ordinary shares
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[1,280,550,942]
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Large Accelerated Filer ☒
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Accelerated Filer ☐
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Non-accelerated Filer ☐
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Emerging Growth Company ☐
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PART I
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Page
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37
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130
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131
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166
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187
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196
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200
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200
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210
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219
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PART II
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219
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219
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220
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221
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221
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222
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222
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223
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223
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225
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225
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225
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225
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FS-1
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Bromine
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A chemical element used as a basis for a wide variety of uses and compounds, and mainly as a component in flame retardants or fire prevention
substances. Unless otherwise stated, the term “bromine” refers to elemental bromine.
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CDP
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Carbon Disclosure Project - A non-profit leading organization in the greenhouse gas emissions reporting field.
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CFR
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Cost and freight. In a CFR transaction, the prices of goods to the customer includes, in addition to FOB expenses, marine shipping costs and
all other costs that arise after the goods leave the seller’s factory gates and up to the destination port.
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CLP
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Classification, Labeling and Packaging of Substances and Mixtures– EU regulation.
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CPI
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The Consumer Price Index, as published by the Israeli Central Bureau of Statistics.
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CRU
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Intelligence Company providing information on global mining, metal and fertilizers market.
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Dead Sea Bromine Company
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Dead Sea Bromine Company Ltd., included in Industrial Products segment.
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DAP
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Diammonium Phosphate - a fertilizer containing nitrate and phosphorus oxide.
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EPA
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US Environmental Protection Agency.
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FAO
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The Food and Agriculture Organization of the United Nations.
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FOB
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Free on-board expenses are expenses for overland transportation, loading costs and other costs, up to and including the port of origin. In an
FOB transaction, the seller pays the FOB expenses and the buyer pays the other costs from the port of origin onwards.
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ICL Haifa (Fertilizers & Chemicals)
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Fertilizers and Chemicals Ltd., included in Innovative Ag Solutions segment.
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GHG
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Greenhouse gases – air emissions contributing to climate change.
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Granular
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Fertilizer having granular particles.
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ICL Boulby
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A United Kingdom Company included in the Potash segment.
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ICL Iberia (Iberpotash)
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Iberpotash S.A., a Spanish Company included in Potash segment.
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IC
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Israel Corporation Ltd.
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ICL Dead Sea (DSW)
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Dead Sea Works Ltd., included in Potash segment.
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ICL Dead Sea Magnesium (DSM)
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Dead Sea Magnesium Ltd., included in Potash segment.
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ICL Neot Hovav
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Subsidiaries in the Neot Hovav area in the south of Israel, including facilities of Bromine Compounds Ltd. Included in Industrial Products
segment.
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ICL Rotem
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Rotem Amfert Negev Ltd., included in Phosphate Solutions segment.
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IFA
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The International Fertilizers Industry Association, an international association of fertilizers manufacturers.
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ILA
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Israel Land Authority.
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IMF
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International Monetary Fund.
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K
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The element potassium, one of the three main plant nutrients.
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KNO3
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Potassium Nitrate, soluble fertilizer containing N&P used as a stand-alone product or as a key component of some water-soluble blends.
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KOH
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Potassium hydroxide 50% liquid.
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MGA
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Merchant grade phosphoric acid.
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MoEP
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Israel Ministry of Environmental Protection.
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N
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The element nitrogen, one of the three main plant nutrients.
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NPK
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Complex fertilizer comprised primarily of 3 primary nutrients (N,P,K).
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NYSE
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The New York Stock Exchange.
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P
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The element phosphorus, one of the three main plant nutrients, which is also used as a raw material in industry.
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Phosphate
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Phosphate rock that contains the element phosphorus. Its concentration is measured in units of P2O5.
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Polyhalite
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A mineral marketed by ICL under the brand name Polysulphate™, composed of potash, sulphur, calcium, and magnesium. Used in its natural form
as a fully soluble and natural fertilizer, which is also used for organic agriculture and as a raw material for production of fertilizers.
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Polymer
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A chemical compound containing a long chain of repeating units linked by a chemical bond and created by polymerization.
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Potash
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Potassium chloride (KCl), used as a plant’s main source of potassium.
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P2O5
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Phosphorus pentoxide.
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P2S5
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Phosphorus pentasulfide.
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REACH
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Registration, Evaluation, Authorization and Restriction of Chemicals, a framework within the European Union.
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Salt
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Unless otherwise specified, sodium chloride (NaCl).
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S
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Sulphur – a chemical used for the production of sulfuric acid for sulfate and phosphate fertilizers,
and other chemical processes.
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Soluble NPK
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Soluble fertilizer containing the three basic elements for plant development (nitrogen, phosphorus and potash).
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Standard
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Fertilizer having small particles.
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Tami
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Tami (IMI) Research and Development Institute Ltd., the central research institute of ICL.
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TASE
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Tel Aviv Stock Exchange, Ltd.
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USDA
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United States Department of Agriculture.
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WPA
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White Phosphoric Acid, purified from MGA.
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Urea
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A white granular or prill solid fertilizer containing 46% nitrogen.
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YTH/YPC
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The Chinese partner in the Company’s joint venture YPH in China.
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4D
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Clean green phosphoric acid, used as a raw material for purification processes.
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PM
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Particular matter
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For the Year Ended December 31,
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|||||
2020
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2019
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2018
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2017
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2016
|
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US$ millions, except for the share data
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Sales
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5,043
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5,271
|
5,556
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5,418
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5,363
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Gross profit
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1,490
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1,817
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1,854
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1,672
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1,660
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Operating income (loss)
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202
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756
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1,519
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629
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(3)
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Income (loss) before income taxes
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49
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628
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1,364
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505
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(117)
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Net income (loss) attributable to the shareholders of the Company
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11
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475
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1,240
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364
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(122)
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Earnings (loss) per share (in dollars):
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|||||
Basic earnings (loss) per share
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0.01
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0.37
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0.97
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0.29
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(0.10)
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Diluted earnings (loss) per share
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0.01
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0.37
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0.97
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0.29
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(0.10)
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Weighted average number of ordinary shares outstanding:
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|||||
Basic (in thousands)
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1,280,026
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1,278,950
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1,277,209
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1,276,072
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1,273,295
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Diluted (in thousands)
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1,280,273
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1,282,056
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1,279,781
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1,276,997
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1,273,295
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Dividends declared per share (in dollars)
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0.09
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0.22
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0.18
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0.13
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0.18
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For the Year Ended December 31,
|
|||||
2020
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2019
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2018
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2017
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2016
|
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US$ millions
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Statements of Financial Position Data:
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|||||
Total assets
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9,664
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9,173
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8,776
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8,714
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8,552
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Total liabilities
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5,576
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5,112
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4,861
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5,784
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5,893
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Total equity
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4,088
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4,061
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3,915
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2,930
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2,659
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• |
Our ability to operate and/or expand our production and operating facilities worldwide is dependent on our receipt of, and compliance with, permits issued by governmental authorities. A decision by a government authority to deny any of our permit applications may impair the Company’s business and
its operations.
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• |
As a mining and industrial chemicals Company, we are exposed to various legislative and licensing restrictions in the areas of environmental
protection and safety. Related compliance costs and liabilities may adversely affect the results of our operations.
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• |
Our mineral extraction operations are dependent on concessions, licenses and permits granted to us by the respective governments in the
countries in which we operate.
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• |
Securing the future of the phosphate mining operations at Rotem Israel depends on obtaining several approvals and permits from the authorities
in Israel.
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• |
The COVID-19 outbreak has impacted and could in the future materially and adversely affect our financial condition and results of operations.
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• |
Our operations and sales are exposed to volatility in the supply and demand, mergers of key producers\customers\suppliers, expansion of
production capacity and competition from some of the world’s largest chemical and mining companies.
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• |
The accumulation of salt at the bottom of Pond 5, the central evaporation pond in our solar evaporation ponds system used to extract minerals
from the Dead Sea, requires regular harvesting of the salt in order to maintain a fixed brine volume and thereby sustain the production capacity of extracted minerals and prevent potential damage to the foundations and structures of the
hotels and other buildings situated close to the edge of the Pond.
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• |
The receding water level in the Northern Basin of the Dead Sea, may require capital and/or operational expenses in order to enable the
continuation of the Company's operations in the Dead Sea.
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• |
We are exposed to risks associated with our international sales and operations, which could adversely affect our sales to customers as well as
our operations and assets in various countries. Some of these factors may also make it less attractive to distribute cash generated by our operations outside Israel to our shareholders, use cash generated by our operations in one country
to fund our operations or repayments of our indebtedness in another country and support other corporate purposes or the distribution of dividends.
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• |
Changes in our evaluations and estimates, which serve as a basis for analyzing our contingent liabilities and for the recognition and
measurement of assets and liabilities, including provisions for waste removal and the reclamation of mines, may adversely affect our business results and financial situation.
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• |
Our tax liabilities may be higher than expected.
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• |
Due to the nature of our Company, we are exposed to administrative and legal proceedings, both civil and criminal, including as a result of
alleged environmental contamination caused by certain of our facilities.
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• |
Geological and mining conditions and/or effects of prior mining that may not be fully identified/assessed within the available data or that may
differ from those based on experience;
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• |
Assumptions concerning future prices of products, operating costs, updates to the statistical model and geological parameters according to past
experience and developing practices in this field, mining technology improvements, development costs and reclamation costs; and
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Assumptions concerning future effects of regulation, including the issuance of required permits and taxes imposed by governmental agencies.
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• |
Difficulties and costs associated with complying with a wide variety of complex laws, treaties and regulations, including the U.S. Foreign
Corrupt Practices Act (the “FCPA”), the UK. Bribery Act of 2010 and Section 291A of the Israeli Penal Law;
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• |
Unexpected changes in regulatory environments and increased government ownership and regulation in the countries in which we operate;
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• |
Political and economic instability, including civil unrest, inflation and adverse economic conditions resulting from governmental attempts to
reduce inflation, such as imposition of higher interest rates and wage and price controls;
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• |
Public health crises, such as pandemics and epidemics; and
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• |
The imposition of tariffs, exchange controls, trade barriers, new taxes or tax rates or other restrictions, including the current trade dispute
between the US and China.
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• |
The duration, severity and spread of the pandemic and the actions required by government authorities or other health organizations to contain
the disease or treat its impact, including the effectiveness of the vaccinations developed and already administered in most countries.
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• |
The duration and severity of the sustained global recession, and the uncertainty as to when global economy will fully recover.
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• |
The possibility of additional outbreaks of the virus, or the development of more harmful and resistant variants of the virus, or any possible
recurrence of other similar types of pandemics, or any other widespread public health emergencies.
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• |
Significant disruption of global financial markets and credit markets, which may reduce our ability to access capital or our customers’ ability
to pay us for past or future purchases, which could negatively affect our liquidity.
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• |
The possibility of temporary closures of our facilities or the facilities of our suppliers, customers, their contract manufacturers, and the
possibility of certain industries shutting down.
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• |
Lower demand and/or pricing for our products and a potential global economic recession could lead to reduced demand in our end markets,
particularly bromine compounds. In addition, the significant decline in crude oil prices and the oil markets’ current ability to absorb excess supplies and rebalance inventory is likely to continue to result in decreased demand for our
clear brine fluids.
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• |
The ability of our suppliers, contractors and third-party providers to meet their obligations to us at previously anticipated costs and
timelines without significant disruption.
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• |
Our ability to continue to meet the manufacturing and supply arrangements with our customers at previously anticipated costs and timelines
without significant disruption.
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• |
The ability to purchase raw materials that we use to produce our products, due to shortages resulting from supply chain disruptions,
quarantines, lockdown orders and production shutdowns.
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• |
Some government incentive programs may be discontinued, expire or be cancelled;
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• |
Governments may initiate new legislation or amend existing legislation in order to impose additional and/or increased fiscal liabilities on our
business, such as additional royalties, natural resource taxes or required investments, as has occurred in Israel;
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• |
The applicable tax rates may increase;
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• |
We may no longer be able to meet the requirements for continuing to qualify for some incentive programs;
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• |
Such incentive programs and tax benefits may be unavailable at their current levels;
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• |
Upon the expiration of a particular benefit, we may not be eligible to participate in a new program or qualify for a new tax benefit that would
offset the loss of the expiring tax benefit.
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• |
Changes in trade agreements between countries, such as in the trade agreements between the United States and China.
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• |
Changes in international taxation laws, as may be adopted by several countries we operate in, or sell to, may result in additional taxes or high
tax rates being imposed on our operations.
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• |
Emission permit under the Israeli Clean Air Act (hereinafter - the Law): In 2018, the Company conducted two risk assessments by external experts
regarding the possibility to execute all the clean air tasks required by the emission permit as per their approved timeline. The risk assessments focused on the technical and safety considerations arising from implementation of a large
number of projects in parallel, in an industrial site. The assessments indicated that there is no operational feasibility to implement the full requirements of the permit within the defined timeline, and accordingly the Company is unable
to meet the timeline set in the current permit. In 2019, following discussions with the Israeli Ministry of Environmental Protection (hereinafter - MoEP), the MoEP informed the Company that during the course of discussions to renew Rotem
Israel's emission permit, which currently remains unchanged, they will consider the safety constraints, the complexity and multiplicity of projects, as well as the Company's diligence to comply with the present permit conditions and their
schedules, while prioritizing projects with significant environmental impact. The Company provided the MoEP with its updated projects' outline, schedule and completion status.
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• |
Mining concessions - The Company has the two mining concessions, which are in effect until the end of 2021. During the fourth quarter of 2020,
as part of the Company's actions to extend the validity of the said mining concessions and obtain the necessary approvals, positive recommendations were received from the Ministry of Energy, the Committee for Reducing Concentration and
the Competition Authority, to extend the licenses for an additional period of three years. In December 2020, the Minister of Energy approached the Chairman of the Finance Committee in the Knesset requesting that the Committee grant final
approval to the said extension.
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• |
Oron's lease agreement - The Company has been working to extend the lease agreement for Oron's plant area since 2017, by exercising the
extension option provided in the agreement.
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• |
Dry and wet phosphogypsum storage - in October 2020, the construction and use permit for pond 5 were extended until December 31, 2021. The
Company is working with the relevant authorities to obtain all the required permits, for the continued operation of the gypsum ponds beyond 2021 and for the continued piling of gypsum, in accordance with the requirements set by law and/or
instructions of the Planning and Building Committee.
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• |
Extension of oil shale extraction permit– The ERD (energy resource development) facility in Rotem Israel, which is used for extracting energy
from oil shales (hereinafter – the facility), is essential for the continued production activity of Rotem Israel. In February 2020, the Ministry of Energy notified of its intention not to renew the oil shale extraction permit due to the
environmental effects of the facility, whose operation is based on outdated technology. The Company is actively working in line with the Ministry of Energy's instructions to replace the facility with a natural gas steam boiler. As the
replacement project is complex, and in light of the delays resulting from the Coronavirus crisis, the Company approached the Ministry of Energy with a request to extend the facility's production permit, from May 2021 until the end of
2022, so that the facility can be used until the completion of the project.
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• |
Finding economically feasible alternatives to the continued mining of phosphate rock in Israel – According to the Company's assessment of
economic phosphate reserves in the existing mining areas, the estimated useful life of Rotem's phosphate rock reserves, which are essential for some production lines, is limited to only a few years. As described above, the Company is
working to obtain permits and approvals which will provide an economic alternative for future mining of phosphate rock in Israel.
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• |
The composition of our Board of Directors (other than external directors, as described under “Item 6 - Directors, Senior Management and
Employees— C. Board Practices— External Directors”);
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• |
Mergers, acquisitions, divestitures or other business combinations;
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• |
Future issuances of ordinary shares or other securities;
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• |
Amendments to our Articles of Association, excluding provisions of the Articles of Association that were determined by virtue of the Special
State Share; and
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• |
Dividend distribution policy.
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• |
Expiration or termination of licenses and/or concessions;
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• |
General stock market conditions;
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• |
Decisions by governmental entities that affect us;
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• |
Variations in our and our competitors’ results of operations;
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• |
Changes in earnings estimates or recommendations by securities analysts; and
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• |
General market conditions and other factors, including factors unrelated to our operating performance.
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• |
In January 2021, the Company completed the acquisition of Agro Fertilaqua Participações S.A., one of Brazil's leading specialty plant nutrition
companies, for a consideration of $122 million (before deduction of Fertilaqua's net debt of $40 million).
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• |
In May 2020, the Company completed the sale of Hagesüd Interspice Gewürzwerke GmbH, including related real-estate assets, to Solina Corporate
SAS. The sale's consideration is about $35 million, of which about $9 million represent a contingent consideration. The contingent consideration will be received subject to meeting a specific sales target for a subsequent period of 12
months, ending on June 30, 2021.
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• |
In February 2020, the Company completed the acquisition of Growers Holdings, Inc., an innovator in the field of process and data-driven farming.
For further information see "Item 5 – Operating and Financial Review and Prospects – C. Research and Development, Patents and Licenses, etc. – Research and Development".
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• |
In March 2018, the Company completed the sale transaction of the fire safety and oil additives businesses, for a total consideration of $1,010 million, of which $953 million was in cash and $57 million in
the form of a long-term loan to a subsidiary of the buyer.
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• |
In 2017, the Company completed the sale of its holdings in IDE Technologies Ltd., constituting 50% of IDE’s share capital.
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• |
Access to one of the world’s richest, longest‑life and lowest‑cost sources of potash and bromine (the Dead Sea).
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• |
Potash mine and processing facilities in Spain. The Company is in the process of consolidating its potash operations in Spain into one site.
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• |
Bromine compounds processing facilities located in Israel, the Netherlands and China.
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• |
A unique integrated phosphate value chain, from phosphate rock mines in Israel and in China to our value‑added downstream products in Israel,
Europe, the United States, Brazil and China. Our specialty phosphates serve the food industry by providing texture and stability solutions to the meat, meat alternatives, poultry, sea food, dairy and bakery markets and many industrial
markets such as metal treatment, water treatment, oral care, carbonated drinks, asphalt modification, paints and coatings and more.
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• |
Polysulphate® resources in the United Kingdom.
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• |
Production of tailor-made, highly effective specialty fertilizers offering both improved value to the grower and essential nutrition for plant development, optimization of crop yields and reduced
environmental impact.
|
• |
A focused and highly experienced team of technical experts developing production processes, new applications, formulations and products for our agricultural and industrial markets.
|
• |
Strong crop nutrition sales and marketing infrastructure, which optimizes distribution channels of commodity, specialty and semi-specialty
fertilizers by achieving commercial excellence, increasing efficiency of its global operations and better leveraging region-specific knowledge, agronomic and R&D capabilities, logistical assets and customer relationships.
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• |
Research and Development: Leveraging its proximity to the globally leading high-tech and agri-tech eco-system in Israel, as well as vast agronomy and chemistry knowledge accumulated over decades, ICL has
developed an extensive global R&D infrastructure, with 250 knowledgeable and highly experienced employees and 20 R&D centers around the global, yielding 750 granted patents in 250 patent families. ICL's R&D supports the
development of new, innovative products, applications and formulations for each of the Company's operating segments, through internal research, employee ideation and collaborative research with external third parties.
|
• |
An extensive global logistics and distribution network with operations in over 30 countries.
|
• |
Unique portfolio of mineral assets. ICL benefits from access to the Dead Sea - one of the world’s
richest, longest‑life and lowest‑cost resources of potash and bromine. ICL’s access to these resources is based on an exclusive concession from the State of Israel for extraction of minerals from the Dead Sea. ICL also holds licenses to
mine potash and salts from underground mines with vast resources in Spain. ICL is the only global producer of polyhalite, a mineral used as fertilizer and consisting potassium, Sulphur, calcium and magnesium. In addition, ICL has access
to phosphate rock in the Negev Desert based on mining licenses from the State of Israel and it holds a license for mining phosphates in China. Access to these assets provides ICL with a consistent, reliable supply of raw materials,
allowing for large scale-production and supporting ICL’s integrated value chain of specialty, value added products.
|
• |
Diversification into higher value‑added specialty products leveraging ICL’s integrated business model. ICL’s
integrated production processes are based on a synergistic value chain that allows it to both efficiently convert raw materials into value‑added downstream products and to utilize the by‑products. For example, in phosphates, ICL utilizes
its backward integration to produce specialty phosphates used in the food industry and for industrial applications. These businesses benefit from higher growth rates, higher margins and lower volatility compared to commodity phosphates.
In addition, as a by‑product of the potash production at the Dead Sea, ICL generates brines with the highest bromine concentration globally. ICL’s bromine‑based products serve various industries such as the electronics, construction, oil
and gas and automotive industries.
|
• |
Leading positions in markets with high entry barriers. ICL obtains leadership positions in many of the
key markets in which it operates. It is the clear leader in the bromine market, with 40% of market capacity, about third of production as well as most of the excess capacity in the market. In the potash market the Dead Sea operations has
leading competitive positions and according to CRU, the Dead Sea is among the most competitive potash suppliers to China, India and Brazil. ICL also has the largest market share in specialty phosphates in the combined markets of North
America, Europe and Latin America and is the sole producer of Polysulphate®. ICL has leadership positions in additional product lines such as phosphorous-based flame retardants, PK fertilizers in Europe and soluble phosphate‑based
fertilizers.
|
• |
Strategically located production and logistics assets. ICL benefits from the proximity of its
facilities, both in Israel and Europe, to developed economies (Western Europe) and emerging markets (such as China, India and Brazil). For example, in Israel, ICL ships from two seaports: The Port of Ashdod (with access to Europe and
South America) and the Port of Eilat (with access to Asia, Africa and Oceania). As a result of their geographical positions, access to these two ports provides ICL with two distinctive advantages versus its competitors: (1) it has lower
plant gate‑to‑port, ocean freight, and transportation costs from ports to target markets, which lower its overall cost structure; and (2) it has faster time to markets due to its proximity to end‑markets, allowing it to opportunistically
fill short lead‑time orders, strengthening its position with its customers. In addition, ICL is the sole producer with the ability to transport potash and phosphates from the same port (which it does in Israel). ICL’s sales are balanced
between emerging markets (approximately 40% of 2020 sales) and developed economies (approximately 60% of 2020 sales).
|
• |
Strong cash generation and closely monitored capital allocation approach. Continuous focus on cash generation, optimization of the capital expenditures (CAPEX) and working capital as well as the implementation of efficiency
measures enabled the Company to generate operating cash flow of $804 million in 2020, a decrease of 19% compared to 2019. Despite the year‑over‑year decline related to COVID-19 and lower commodities prices, these cash flows were used in
accordance with the Company’s strict approach in connection with allotment of equity, whereby the Company examines, on an ongoing basis, the work plan and its investments. ICL's capital allocation approach balances between driving its
long‑term value creation through investments in its growth, providing a solid dividend yield while aiming to maintain an investment grade rating (at least BBB- by S&P and Fitch). On February 12, 2020, the Company’s Board of Directors
resolved to extend the Company's dividend policy of a payout ratio of up to 50% of annual adjusted net income, until further notice. In respect to 2020 adjusted net income, the Company declared total dividends in the amount of $129
million, reflecting a dividend yield rate of approximately 2.7% (based on the average share price for the year). See “Item 8 - Financial Information— A. Consolidated Statements and Other Financial Information— Dividend policy”.
|
• |
Professional expertise and culture of collaboration and determination. ICL’s operations are managed by
an international management team with extensive industry experience. ICL develops leaders with strong experience in their fields in order to drive change and innovation within the Company. ICL focuses on nurturing and empowering talent
through a global platform of qualification, collaboration and communication that reinforces innovation.
|
Sub-business line
|
Product
|
Primary Applications
|
Primary End‑Markets
|
Flame retardants
|
Bromine-, Phosphorus- and
magnesium-Based Flame
Retardants
|
Plastic, building materials and textile production
|
Electronics, automotive, building and construction, furniture and textiles
|
Industrial solutions
|
Elemental Bromine
|
Chemical reagent
|
Tire manufacturing, pharmaceuticals and agro
|
Phosphorus-Based
Industrial Compounds
|
Fire resistant fluids in turbines & power generation hydraulic systems and phosphorus-based
inorganic intermediates
|
Power plants and agro
|
|
Organic Bromine Compounds
|
Insecticides, solvents for chemical synthesis and chemical intermediates
|
Pharmaceuticals and agro
|
|
Clear Brines
|
Oil and gas drillings
|
Oil and gas
|
|
Merquel
|
Mercury emission control
|
Emission control in coal‑fired power plants
|
|
Bromine‑Based Biocides
|
Water treatment and disinfection
|
Swimming pools, cooling towers, paper plants and oil and gas drillings
|
|
Specialty minerals
|
Magnesia Products
|
Pharma and Supplementals, transformer steel, catalysts, fuel and oil additives.
|
Supplementals, multivitamins, transformer steel, automotive rubber and plastic, health care
|
Calcium Carbonate
|
Supplementals and pharma
|
Supplementals and pharma
|
|
Solid MgCl2, KCl
|
Deicing, food, oil drilling, pharma
|
Deicing, sodium replacement, KCl for drugs. multivitamins, oil drilling companies, small industrial
niche markets
|
• |
The relatively low average cost of potash production at the Dead Sea, using the sun as a solar energy source in the evaporation process.
|
• |
Logistical advantages due to its geographical location, access to nearby ports in Israel and Europe and relative proximity to its customers,
which are reflected in particularly competitive marine and overland shipping costs and delivery times.
|
• |
Climate advantages due to the hot and dry climate of the Dead Sea that enable the Company to store, at very low cost, a large quantity of potash
in an open area thereby allowing it to constantly produce at Sodom at full capacity, independent of fluctuations in global potash demand.
|
• |
Our mine in Spain is one of the last mines in Western Europe, creating logistics advantages in supply to customers in Europe.
|
• |
Currently, ICL is the sole producer of Polysulphate® worldwide.
|
• |
The ability to increase production at a relatively low capital expenditure.
|
• |
The Polysulphate® and Polysulphate®-based fertilizers, customized to meet the needs of different crops and soil types, maximize yield and allow
more precise and efficient applications.
|
• |
Polysulphate® contributes to and follows the main market trends in the fields of increased nutrient-use efficiency, low carbon footprint and
organic fertilizers.
|
• |
PotashpluS – a compressed mixture of Polysulphate® and potash. The product includes potassium, sulphur, calcium and magnesium and is marketed by
the Potash Segment. ICL continued the growth trend of PotashpluS throughout 2020 and plans to continue this trend in 2021.
|
• |
PKpluS – a unique combination of phosphate, potash and Polysulphate ®. In 2020, the Company, through the Phosphate Solutions Segment, increased
PKpluS sales and plans to continue with this trend in 2021.
|
• |
NPKpluS- a unique combination of Nitrogen, phosphate, potash and Polysulphate®. This product includes all 6 macro nutrients in one granule
|
• |
NovaPhos – ensures an effective supply of slow-release phosphorus, calcium, magnesium and micronutrients for crops, specifically tailored for
use in acidic soil.
|
• |
NPS – a nitrogen-phosphate fertilizer compounded with sulphur, which provides exceptional effectiveness for the enhancement of a wide range of
crops through the combination of these three nutrients in one product.
|
• |
PK+Micronutrients – a tailor-made fertilizer, with precise micronutrient composition for the specific type of crop.
|
• |
An integrated value chain uses the phosphate rock mined in Israel (ICL Rotem), as well as in China (YPH JV) for the production of its green
phosphoric acid, which serves mainly as a raw material for the production of the Segment's products and for the production of ICL's Innovative Ag Solutions products.
|
• |
Logistical advantages due to the Segment's geographical location and diversification, proximity to ports in Israel and Europe and relative
proximity to its customers.
|
• |
ICL is a global fertilizer producer that can combine potash and phosphate fertilizers in the same shipment, which enables it to service smaller
customers, particularly in Brazil and the United States.
|
• |
The Segment enjoys a competitive advantage in specialty phosphates deriving from product features, quality, service, technical application
support, a global manufacturing footprint and a very broad product line.
|
• |
YPH JV provides an integrative phosphate platform in China, with better access to the Chinese market. In addition, the Segment enjoys a
competitive cost advantage in its phosphate activities, due to access to low‑cost phosphate rock with long‑term reserves.
|
• |
Controlled‑release fertilizers (CRF) allow accurate release of nutrients over time. CRFs have a special coating that allows prolonged release of
nutrients over several weeks and up to 18 months - compared to regular fertilizers that dissolve in the soil and are immediately available but therefore leach partially in the soil. ICL Innovative Ag Solutions has leading global
brand-name products such as, Osmocote, Agroblen and Agrocote. Osmocote is the most used controlled‑release fertilizer by ornamental growers worldwide. The brand is known to deliver high quality ornamental plants due to its consistent
release of nutrients and unique patterned and programmed release technologies. ICL continues to invest in new technologies, as well as field trials to test and confirm the high reliability of its products. During the past few years, ICL
developed several new technologies such as the “Dual Coating Technology” (which optimizes the release to ornamental plants) and the “E-Max Release Technology” (a new coating technology with improved release characteristics, mainly for
urea). Furthermore, ICL is also selling slow‑release fertilizers (SRF) which, due to their low solubility and hydrolysis, release nutrients slowly (generally up to a period of two months). Main markets for these fertilizers are in the
Turf and Amenity markets.
|
• |
Soluble fertilizers, which are fully water‑soluble, and fully‑soluble NPK compound fertilizers, are commonly used for fertilization through drip
irrigation systems to optimize fertilizer efficiency in the root zone to maximize yields. These fully soluble fertilizers are sometimes also used for foliar applications. ICL's well-known brands for fertigation are Peters, Universol,
Agrolution, NovaNPK and Novacid. ICL develops specific formulations for different applications and circumstances. There are specific formulations for specific crops, greenhouses and/or open fields, as well as for different water types.
|
• |
ICL is also selling ‘Straight fertilizers’ which are crystalline, free‑flowing and high purity phosphorus soluble fertilizers such as MKP, MAP
and PeKacid. Key brands are NovaPeak & NovaMAP. PeKacid is the only solid highly acidifying, water soluble fertigation product that contains both phosphorus and potassium. The product is ideal for specific water conditions where an
acidifying effect is required, as well as for keeping the dripping lines clean.
|
• |
Liquid fertilizers are used for intensive agriculture, and are integrated in irrigation systems (mainly drip systems). The product line includes
mostly tailor‑made formulations designed for specific soil & water/climate conditions and crop needs.
|
• |
Peat, a growing medium for various crops, where generally controlled‑release fertilizers and plant‑protection products are mixed in. Specific
formulations of growing media are designed for specific plant needs, such as greenhouse bedding plants and outdoor nurseries. A well-known ICL brand is the “Levington” brand. Inclusion of growing media products in the portfolio in the UK
allows ICL to offer an effective total solution to its customers.
|
• |
Water conservation and soil conditioning products are new product lines developed by ICL's IAS segment. Water conservation products are used in
professional turf to keep water in the root-zone. Key brands are H2Flo and H2Pro. These products significantly reduce irrigation requirements. This new technology is also used in agriculture to allow better water availability around the
root-zone of the crops.
|
• |
A strong, efficient and integrated supply chain with in-house access to high quality raw materials, such as phosphate and potash, which is based
on an extensive product portfolio and multi-location production.
|
• |
Unique R&D and product development capabilities, creating a strong platform for future growth in controlled-release fertilizers,
fertigation, foliar soluble fertilizers, enhanced nutrients, water efficiency and innovative next generation products.
|
• |
Added value production process technology – custom-made formulations to meet our customers’ unique needs.
|
• |
Highly skilled global agronomic sales team providing professional advice, consultation and distributor loyalty.
|
• |
Full product portfolio (one-stop shop).
|
• |
ICL’s well-known and leading brands.
|
• |
European Ecodesign E-Display regulation published by the European Commission in December 2019, is aiming to ban the use of halogenated flame
retardants in electronic display enclosures and stands beginning in mid-2021. This is the first-time chemicals have been regulated under this regulation and was justified as a means to improve plastics recycling.
|
• |
Tetrabromobisphenol A (TBBPA or TBBA) flame retardant, is under review as part of the Chemicals Regulation in Europe (REACH). The results of the
review are expected in 2021. TBBA is also being reviewed under the European Directive on the Restriction of the use of certain Hazardous Substances in electrical and electronic equipment (RoHS). The draft assessment was published on
December 2019 and includes a proposal to restrict TBBA for its additive uses in plastics for EE&E (Electric and Electronic Equipment). We (as BSEF) expressed our serious
concern at the scientific basis for the assessment undertaken in this draft. The European Commission will review and make its final decision, likely during 2022.
|
• |
Ammonium Bromide: Sweden has filed a dossier supporting proposed classification as reproductive toxin category 1B under the Classification,
Labelling & Packaging (CLP) EU Regulation. In October 2020, the risk assessment committee (RAC) of ECHA provided an opinion that the classification is warranted. The final decision, expected by end of 2021-early 2022, will be made by
the European Commission. A decision on the further use of ammonium bromide as a biocide will be taken by the BPC (Biocidal Products Committee) during 2021.
|
• |
Additional specific products of the Industrial Products segment are in the process of evaluation under the Chemical Regulation in the EU
(REACH). For some products, there are draft or final decisions by ECHA to perform more studies, a process that will take a few years until the evaluation is completed. Other products are in the process of evaluation under the Biocides
Products Regulation (BPR).
|
• |
Using sewage sludge ash for fertilizer production.
|
• |
Salt by-product utilization. As part of our normal operations, we are disposing 2.6 M cubic meters of salt from the potash production plants,
(excluding the salt harvesting project), we are looking for alternative areas to store it in proximity to the areas where the salt is produced. The salt wall obstacle is being built along the border between Israel and Jordan and will
provide us with a close area to store salt (1.2 M cubic meters) while supporting IDF needs. Approximately 1 kilometer of the salt wall was already built.
|
• |
The ESK project is collecting APCr (Air Polution Control residue) ashes from Waste to Energy plants casting it into blocks and using the blocks
as mine support materials replacing wood and steel.
|
• |
MagiK - Creating value from by-products. A new product was developed and marketed from a by-products stream that is created as part of
magnesium's production process.
|
C. ORGANIZATIONAL STRUCTURE
|
• |
Israel: under the Israeli Dead Sea Concession Law, 1961, as amended in 1986 (the “Concession Law”), we have lease rights until March 31, 2030
for the salt and carnallite ponds, pumping facilities and productions plants at Sodom. We have other production facilities in Israel, situated on land with a long term lease, including the plants Oron and Zin at Mishor Rotem of Phosphate
Solutions segment (the lease agreement of Oron plant in under an extension process since 2017), production facilities at Naot Hovav of Industrial Products segment (leased until 2024-2048), as well as production, storage and transportation
facilities together with chemicals and research laboratories at Kiryat Ata that belong to Innovative Ag Solutions segment (leased until 2046‑2049). We also use warehouse, loading and unloading sites at the Ashdod and Eilat ports (leased
until 2030).
|
• |
Europe:
|
• |
North and South America:
|
• |
Asia:
|
Property Type
|
Location
|
Size (square feet)
|
Products
|
Owned/Leased
|
Plant
|
Mishor Rotem, Israel
|
27,094,510
|
Phosphate Solutions products
|
Owned on leased land
|
Plant
|
Mishor Rotem, Israel
|
10,763,910
|
Industrial Products products
|
Owned on leased land
|
Plant
|
Neot Hovav, Israel
|
9,601,591
|
Industrial Products products
|
Owned on leased land
|
Plant
|
Zin, Israel
|
8,484,123
|
Phosphate Solutions products
|
Owned on leased land
|
Plant
|
Kiryat Ata, Israel
|
6,888,903
|
Innovative Ag Solutions products
|
Leased
|
Plant
|
Oron, Israel
|
4,413,348 (not including phosphate reserve)
|
Phosphate Solutions products
|
Owned on leased land
|
Plant
|
Sodom, Israel
|
13,099,679 (not including ponds and Magnesium factory)
|
Potash products
|
Owned on leased land
|
Plant
|
4,088,800
|
Magnesium products (Potash segment)
|
Owned on leased land
|
|
Plant
|
2,326,060
|
Industrial Products products
|
Owned on leased land
|
|
Conveyor belt
|
1,970,333
|
Transportation facility for Potash
|
Owned on leased land
|
|
Pumping station
|
920,314
|
Pumping station for Potash segment
|
Owned on leased land
|
|
Plant
|
667,362
|
Industrial Products products
|
Owned on leased land
|
|
Power plant
|
645,856
|
Power and steam production for Potash segment
|
Owned on leased land
|
Warehouse and loading facility
|
Ashdod, Israel
|
664,133
|
Warehouse for Potash and Phosphate Solutions products
|
Leased
|
Headquarters
|
Beer Sheva, Israel
|
191,598
|
Company headquarters
|
Owned and leased
|
Plant
|
Mishor Rotem, Israel
|
430,355
|
Phosphate Solutions products
|
Owned on leased land
|
Warehouse and loading facility
|
Eilat, Israel
|
152,557
|
Warehouse for Potash and Phosphate Solutions products
|
Leased
|
Headquarters
|
Tel Aviv, Israel
|
21,797
|
Company headquarters
|
Leased
|
Plant
|
Catalonia, Spain
|
48,491,416
|
Mines, manufacturing facilities and warehouses for Potash
|
Owned
|
Port/warehouse
|
Catalonia, Spain
|
866,407
|
Potash and salt products
|
Owned on leased land
|
Plant
|
Totana, Spain
|
2,210,261
|
Innovative Ag Solutions products
|
Owned
|
Plant
|
Cartagena, Spain
|
209,853
|
Innovative Ag Solutions products
|
Owned
|
Warehouse and loading facility
|
Cartagena, Spain
|
184,342
|
Storage for Innovative Ag Solutions products
|
Leased
|
Plant
|
Jiaxing, China
|
828,017
|
Industrial Products products
|
Owned on leased land
|
Plant
|
Shandong, China
|
692,045
|
Industrial Products products
|
Owned on leased land
|
Plant
|
Kunming, Yunnan, China
|
458,394
|
Production Plant of Phosphate Solutions
|
Owned on leased land
|
Plant
|
Lian Yungang, China
|
358,793
|
Industrial Products products
|
Owned on leased land
|
Headquarters
|
Shanghai, China
|
8,224
|
Company headquarters
|
Leased
|
Plant
|
Kunming, Yunnan, China
|
290,420
|
Phosphate Solutions products
|
Owned on leased land
|
Pumping station
|
Kunming, Yunnan, China
|
2,231
|
A pumping station for Phosphate Solutions
|
Owned on leased land
|
Peat Moor
|
Nutberry and Douglas Water, United Kingdom
|
17,760,451
|
Peat mine -Innovative Ag Solutions
|
Owned
|
Plant
|
Cleveland, United Kingdom
|
13,239,609
|
Polysulphate products (Potash segment)
|
Owned
|
Warehouse and loading facility
|
Cleveland, United Kingdom
|
2,357,296
|
Polysulphate products (Potash segment)
|
Leased
|
Peat Moor
|
Creca, United Kingdom
|
4,305,564
|
Peat mine - Innovative Ag Solutions
|
Owned
|
Plant
|
Nutberry, United Kingdom
|
322,917
|
Innovative Ag Solutions products
|
Owned
|
Plant
|
Daventry, United Kingdom
|
81,539
|
Innovative Ag solutions products
|
Owned and leased
|
Plant
|
Terneuzen, the Netherlands
|
1,206,527
|
Industrial Products products
|
Owned
|
Plant & warehouse
|
Lawford Heath, Rugby
|
45,000
|
Innovative Ag solutions products
|
Leased
|
Plant
|
Heerlen, the Netherlands
|
481,802
|
Innovative Ag solutions products
|
Owned and leased
|
Plant
|
Amsterdam, the Netherlands
|
349,827
|
Phosphate Solutions products and logistics center
|
Owned on leased land
|
European Headquarters
|
Amsterdam, the Netherlands
|
59,055
|
European Company headquarters
|
Leased
|
Plant
|
Gallipolis Ferry, West Virginia, United States
|
1,742,400
|
Industrial Products products
|
Owned
|
Plant
|
Lawrence, Kansas, United States
|
179,689
|
Phosphate Solutions products
|
Owned
|
Plant
|
Carondelet, Missouri, United States
|
172,361
|
Phosphate Solutions products
|
Owned
|
Plant
|
North Charleston, South Carolina, United States
|
100,000
|
Innovative Ag solutions products
|
Leased
|
Plant
|
Summerville, South Carolina, United States
|
40,000
|
Innovative Ag solutions products
|
Leased
|
US headquarters
|
St. Louis, Missouri, United States
|
45,595
|
US Company headquarters
|
Leased
|
Plant
|
Ludwigshafen, Germany
|
2,534,319
|
Phosphate Solutions products and Infrastructure
|
Leased
|
Plant
|
Ladenburg, Germany
|
1,569,764
|
Phosphate Solutions products
|
Owned
|
Plant
|
Bitterfeld, Germany
|
514,031
|
Industrial Products products
|
Owned
|
Plant
|
Cajati, Brazil
|
413,959
|
Phosphate Solutions products
|
Owned
|
Plant
|
Sao Jose dos Campos, Brazil
|
Phosphate plant: 137,573 Blending plant: 80,729
|
Phosphate Solutions products
|
Owned on (free of charge) leased land
|
Plant
|
Belgium
|
128,693
|
Innovative Ag solutions products
|
Owned
|
Plant
|
Calais, France
|
546,290
|
Industrial Products products
|
Owned
|
Plant
|
Bandırma, Turkey
|
375,187
|
Phosphate Solutions products
|
Owned
|
Plant
|
Hartberg, Austria
|
692,937
|
Phosphate Solutions products
|
Owned
|
Plant
|
Heatherton, Australia
|
64,583
|
Phosphate Solutions products
|
Leased
|
Israel
|
Out of Israel
|
Total
|
||
Year Ended December 31,
|
$ millions
|
NIS millions
|
$ millions
|
2020
|
75
|
257
|
2
|
77
|
2019*
|
82
|
295
|
3
|
85
|
2018*
|
71
|
255
|
4
|
75
|
Year Ended December 31,
|
|||
2020
|
2019
|
2018
|
Millions of tonnes produced
|
6
|
7
|
8
|
Grade (%P2O5 before/after beneficiation)
|
26/32
|
26/32
|
26/32
|
Year Ended December 31,
|
|||
2020
|
2019
|
2018
|
|
thousands of tonnes
|
thousands of tonnes
|
thousands of tonnes
|
Phosphate Rock
|
3,090
|
2,807
|
3,550
|
Green Phosphoric Acid
|
544
|
567
|
560
|
Fertilizers
|
920
|
1,033
|
988
|
White Phosphoric Acid
|
171
|
134
|
162
|
Specialty Fertilizers
|
70
|
66
|
70
|
Year Ended December 31,
|
|||
2020*
|
2019
|
2018
|
Sallent
|
|||
Ore processed (in millions of tonnes)
|
1
|
1
|
2
|
Grade (% KCl)
|
22%
|
23%
|
23%
|
Suria
|
|||
Ore processed (in millions of tonnes)
|
2
|
3
|
2
|
Grade (% KCl)
|
25%
|
24%
|
25%
|
Total
|
|||
Ore processed (in millions of tonnes)
|
3
|
4
|
4
|
Year Ended December 31,
|
|||
2020
|
2019
|
2018
|
Polyhalite Ore (millions of tonnes)
|
0.7
|
0.6
|
0.4
|
Year Ended December 31,
|
|||
2020
|
2019
|
2018
|
Millions of tonnes produced
|
2.4
|
2.15
|
2.15
|
Grade (%P2O5 before/after beneficiation)
|
20.99/28.69
|
20.7/28.98
|
20.7/28.98
|
Year Ended December 31,
|
|||
2020
|
2019
|
2018
|
|
thousands of tonnes
|
thousands of tonnes
|
thousands of tonnes
|
Phosphate Rock *
|
2,044
|
1,946
|
1,725
|
Green Phosphoric Acid
|
632
|
637
|
635
|
Fertilizers
|
584
|
516
|
584
|
White Phosphoric Acid (TG)
|
71
|
64
|
65
|
Specialty Fertilizers
|
55
|
46
|
48
|
1. |
Rotem Field (including the Hatrurim Field) – valid up to the end of 2021;
|
2. |
Zafir Field (Oron‑Zin) – valid up to the end of 2021;
|
• |
Proven (measured) reserves. Reserves for which (1) quantity is computed from
information received from explorations, channels, wells and drillings; grade and/or quality are computed from the results of detailed sampling and (2) the sites for inspection, sampling and measurement are spaced so closely to each other
so that the geologic character is well defined so the size, shape, depth and mineral content of reserves can be reliably determined.
|
• |
Probable (indicated) reserves. Reserves for which quantity and grade and/or quality are computed from information similar to that used for
proven (measured) reserves, but the sites for survey, sampling, and measurement are further apart or are otherwise less efficiently spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough
to assume continuity between points of observation.
|
Category
|
White Phosphate
|
Low Organic Phosphate
|
High Organic Phosphate
|
Bituminous Phosphate
|
Recoverable Reserves
|
Average Grade
|
|
(millions of tonnes)
|
(%P2O5)
|
Rotem
|
Proven
|
-
|
9
|
-
|
9
|
26%
|
|
Zin
|
Proven
|
-
|
12
|
15
|
3
|
30
|
25%
|
Oron
|
Proven
|
10
|
3.5
|
-
|
13.5
|
23%
|
|
Total (Proven) (1)
|
10
|
25
|
15
|
3
|
53
|
(1) |
Amounts may not add up due to rounding.
|
Mine
|
Reserve Category
|
Millions of tonnes
|
Average Grade (% KCl)
|
Cabanasses
|
Proven
|
28
|
26%
|
Probable
|
60
|
27%
|
|
Total Proven and Probable
|
88
|
27%
|
|
Vilafruns
|
Proven
|
-
|
0%
|
Probable
|
-
|
0%
|
|
Total Proven and Probable
|
-
|
0%
|
|
Total(1)
|
Proven and Probable
|
88
|
27%
|
Category
|
Low Organic Phosphate
|
Average Grade
|
|
(millions of tonnes)
|
(% P2O5)
|
Block 1
|
Proven
|
2
|
21%
|
Block 2
|
Proven
|
5
|
21%
|
Block 3
|
Proven
|
28
|
22%
|
Block 4
|
Proven
|
16
|
22%
|
Total (Proven)
|
51
|
Year Ended December 31,
|
$ millions
|
NIS millions
|
2020
|
346
|
1,192
|
2019
|
425
|
1,514
|
2018
|
416
|
1,495
|
Average prices
|
2020
|
2019
|
VS 2019
|
Granular potash - Brazil
|
CFR spot
($ per tonne)
|
238
|
330
|
(28%)
|
Granular potash - Northwest Europe
|
CIF spot/contract
(€ per tonne)
|
244
|
285
|
(14%)
|
Standard potash -Southeast Asia
|
CFR spot
($ per tonne)
|
245
|
294
|
(17%)
|
Potash imports
|
To Brazil
|
million tonnes
|
11.0
|
10.2
|
7.8%
|
To China
|
million tonnes
|
8.7
|
9.1
|
(4%)
|
To India
|
million tonnes
|
4.1
|
4.1
|
-
|
$ per tonne
|
2020
|
2019
|
VS 2019
|
DAP
|
CFR India Spot
|
331
|
361
|
(8)%
|
TSP
|
CFR Brazil Spot
|
251
|
311
|
(19)%
|
SSP
|
CPT Brazil inland
18-20% P2O5 Spot
|
177
|
224
|
(21)%
|
Sulphur
|
Bulk FOB Adnoc
monthly contract
|
60
|
88
|
(32)%
|
For the Year Ended December 31,
|
|||
2020
|
2019
|
2018
|
|
US$ millions
|
Operating income
|
202
|
756
|
1,519
|
Capital gain (1)
|
-
|
-
|
(841)
|
Impairment of assets, provision for site closure and restoration costs (2)
|
229
|
(3)
|
37
|
Provision for early retirement (3)
|
78
|
-
|
7
|
Provision for legal proceedings (4)
|
-
|
7
|
31
|
Total adjustments to operating income
|
307
|
4
|
(766)
|
Adjusted operating income
|
509
|
760
|
753
|
Net income attributable to the shareholders of the Company
|
11
|
475
|
1,240
|
Total adjustments to operating income
|
307
|
4
|
(766)
|
Adjustments to finance expenses (5)
|
-
|
-
|
10
|
Total tax impact of the above operating income
|
(60)
|
-
|
(7)
|
Total adjusted net income - shareholders of the Company
|
258
|
479
|
477
|
(1) |
Capital gain relating to sale of businesses and gain from consolidation and deconsolidation of businesses in 2018, capital
gain from the sale of the Fire Safety and Oil Additives (P2S5) businesses.
|
(2) |
Impairment in value, write down of assets, reversal of impairment loss, provision for prior periods waste removal, provision
for assets retirement obligation (ARO) and site restoration and closure costs. In 2018, write-off of Rovita’s assets following its divestment, write-off of an intangible asset regarding a specific R&D project related to ICL’s
phosphate-based products and an increase of the provision for the closure and restoration of Sallent site. In 2019, due to an agreement for the sale of assets, a partial reversal of impairment loss related to assets in Germany, which was
incurred in 2015, an increase of the provision for the removal of prior periods waste in bromine production facilities in Israel and an increase of the provision for the closure and restoration of Sallent site. In 2020, an impairment and
write-off of certain assets in Israel (Rotem Amfert Israel), related to continued low phosphate prices and the discontinuation of the unprofitable production and sale of the phosphate rock activity, which also resulted in an increase in
the provision for assets retirement obligation (ARO) as well as an increase in facilities restoration costs. Also reflects an impairment of assets and an increase in the provision for the closure and restoration of Sallent site
(Vilafruns) in Spain (ICL Iberia). See also – Notes 12 and 18 to our Audited Financial Statements.
|
(3) |
Provision for early retirement and dismissal of employees in accordance with the Company’s comprehensive global efficiency
plan in its production facilities throughout the group. In 2018, provision relating to the Company’s facility in the United Kingdom (ICL Boulby) due to the transition to sole
production of Polysulphate®. In 2020, an increase in the provision related to the headcount reduction plan, which was implemented as part of the Company’s efficiency initiatives and measures, primarily through an early retirement plan for
the Israeli production facilities (Rotem Amfert Israel, Bromine Compounds and Dead Sea Magnesium). See also – Note 16 to our Audited Financial Statements.
|
(4) |
Provision for legal proceedings. In 2018, an increase of a provision in connection with the royalties’ arbitration in Israel
relating to prior periods, partly offset by a VAT refund related to prior periods in Brazil (2002-2015). In 2019, an increase of the provision in connection with the finalization
of the royalties’ arbitration in Israel relating to prior periods, partly offset by a decrease in the provision relating to legal claim in Spain. See also – Note 18 to our Audited Financial Statements.
|
(5) |
Interest and linkage expenses. In 2018, increase of provision related to the royalties’ arbitration in Israel.
|
For the Years Ended December 31,
|
%
Increase
(Decrease)
|
||
2020
|
2019
|
||
$ millions
|
$ millions
|
Sales
|
5,043
|
5,271
|
(4)%
|
Cost of sales
|
3,553
|
3,454
|
3%
|
Gross profit
|
1,490
|
1,817
|
(18)%
|
Selling, transport and marketing expenses
|
766
|
767
|
(0)%
|
General and administrative expenses
|
232
|
254
|
(9)%
|
Research and development expenses
|
54
|
50
|
8%
|
Other expenses
|
256
|
30
|
753%
|
Other income
|
(20)
|
(40)
|
(50)%
|
Operating income
|
202
|
756
|
(73)%
|
Finance expenses, net
|
158
|
129
|
22%
|
Share in earnings of equity-accounted investees
|
5
|
1
|
400%
|
Income before income taxes
|
49
|
628
|
(92)%
|
Provision for income taxes
|
25
|
147
|
(83)%
|
Net income
|
24
|
481
|
(95)%
|
Net income attributable to the shareholders of the Company
|
11
|
475
|
(98)%
|
Earnings per share attributable to the shareholders of the Company:
|
|||
Basic earnings per share (in dollars)
|
0.01
|
0.37
|
(97)%
|
Diluted earnings per share (in dollars)
|
0.01
|
0.37
|
(97)%
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
YTD 2019 figures
|
5,271
|
(4,515)
|
756
|
|
Total adjustments YTD 2019*
|
-
|
4
|
4
|
|
Adjusted YTD 2019 figures
|
5,271
|
(4,511)
|
760
|
|
Quantity
|
117
|
(47)
|
70
|
|
Price
|
(376)
|
-
|
(376)
|
|
Exchange rates
|
31
|
(51)
|
(20)
|
|
Raw materials
|
-
|
87
|
87
|
|
Energy
|
-
|
(1)
|
(1)
|
|
Transportation
|
-
|
17
|
17
|
|
Operating and other expenses
|
-
|
(28)
|
(28)
|
|
Adjusted YTD 2020 figures
|
5,043
|
(4,534)
|
509
|
|
Total adjustments YTD 2020*
|
-
|
(307)
|
(307)
|
|
YTD 2020 figures
|
5,043
|
(4,841)
|
202
|
- |
Sales – The Company's sales decreased by $228 million compared to 2019. The decrease was primarily related to a $56 decrease in the
average realized price per tonne of potash, compared to the same period last year, as well as the downward price adjustment with respect to certain quantities of potash sold during 2019, in line with the potash supply contracts in China
and a decrease in the selling prices of phosphate commodities products (see 'price' above). In addition, a decrease was recorded in sales volumes of bromine-based industrial solutions, mainly due to a decrease in global demand related to
the COVID‑19 pandemic (see 'quantity' above).
|
- |
Cost of sales – The cost of sales increased by $99 million compared to 2019. The increase was primarily related to an increase in the sales
volumes of potash, most of ICL phosphate specialties products, phosphate fertilizers, specialty agriculture products and phosphorus‑based flame retardants (see 'quantity' above), coupled with the effect of exchange rates fluctuations,
mainly from the appreciation of the average exchange rate of the Israeli shekel and the euro against the dollar, which increased operational costs (see ‘Exchange rate’ above), as well as higher operating costs, mainly due to costs related
to the COVID-19 pandemic and lower potash production in Spain (see 'Operating and other expenses' above).
|
- |
Selling and marketing – Selling and marketing expenses decreased by $1 million compared to 2019, as lower marine and inland
transportation costs (see ‘Transportation’ above) were mostly offset by an increase in sales volumes (see 'Quantity' above).
|
- |
General and administrative – General and administrative expenses decreased by $22 million compared to 2019. The Company continued to
decrease the low level of general and administrative expenses following the efficiency measures implemented in recent years.
|
- |
Research and Development – Research and development expenses increased by $4 million compared to 2019, mainly due to the acquisition of
Growers Holdings Inc., as part of the Company's goal to further expand and accelerate its digital platform.
|
- |
Other expenses, net – Other expenses, net, increased by $246 million compared to 2019. The increase was primarily due to higher expenses
related to impairment of assets, early retirement of employees and site closure and restoration costs (see ‘Adjustments to reported operating and net income – Non-GAAP financial measures’ above). The increase was partly offset by
actuarial gains and cost-saving initiatives (see 'Operating and other expenses' above).
|
Year Ended December 31,
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Europe
|
1,822
|
1,885
|
Asia
|
1,432
|
1,423
|
North America
|
859
|
910
|
South America
|
517
|
668
|
Rest of the world
|
413
|
385
|
Total
|
5,043
|
5,271
|
2020
|
2019
|
|
$ millions
|
$ millions
|
Segment Sales
|
1,255
|
1,318
|
Sales to external customers
|
1,242
|
1,307
|
Sales to internal customers
|
13
|
11
|
Segment Profit
|
303
|
338
|
Depreciation and amortization
|
77
|
67
|
Capital expenditures*
|
84
|
74
|
Year Ended December 31,
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Europe
|
458
|
469
|
Asia
|
405
|
399
|
North America
|
296
|
351
|
South America
|
40
|
55
|
Rest of the world
|
43
|
33
|
Total
|
1,242
|
1,307
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
YTD 2019 figures
|
1,318
|
(980)
|
338
|
|
Quantity
|
(73)
|
33
|
(40)
|
|
Price
|
4
|
-
|
4
|
|
Exchange rates
|
6
|
(12)
|
(6)
|
|
Raw materials
|
-
|
(2)
|
(2)
|
|
Energy
|
-
|
2
|
2
|
|
Transportation
|
-
|
(2)
|
(2)
|
|
Operating and other expenses
|
-
|
9
|
9
|
|
YTD 2020 figures
|
1,255
|
(952)
|
303
|
- |
Quantity – The negative impact on the segment’s operating income was primarily related to a decrease in the quantities sold of
bromine-based industrial solutions, mainly due to a decrease in global demand as a result of the COVID‑19 pandemic. This was partly offset by an increase in sales volumes of phosphorus-based flame retardants.
|
- |
Price – The positive impact on the segment’s operating income was primarily related to an increase in the selling prices of specialty
minerals.
|
- |
Exchange rate – The unfavorable impact on the segment’s operating income was primarily related to the appreciation of the average
exchange rate of the Israeli shekel against the dollar, which increased operational costs. This was partly offset by to the appreciation of the average exchange rate of the euro against the dollar, which contributed to the segment's
revenue more than it increased operational costs.
|
- |
Operating and other expenses – The positive impact on the segment's operating income was primarily related to actuarial gains as well as
lower payment of royalties, due to the decrease in sales volumes.
|
2020
|
2019
|
|
$ millions
|
$ millions
|
Segment Sales
|
1,346
|
1,494
|
Potash sales to external customers
|
979
|
1,081
|
Potash sales to internal customers
|
95
|
100
|
Other and eliminations*
|
272
|
313
|
Gross Profit
|
472
|
643
|
Segment Profit
|
120
|
289
|
Depreciation and amortization
|
166
|
149
|
Capital expenditures**
|
296
|
478
|
Average realized price (in $)***
|
230
|
286
|
Year Ended December 31,
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Asia
|
431
|
469
|
Europe
|
354
|
357
|
South America
|
230
|
327
|
North America
|
86
|
93
|
Rest of the world
|
82
|
84
|
Total
|
1,183
|
1,330
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
$ millions
|
$ millions
|
YTD 2019 figures
|
1,494
|
(1,205)
|
289
|
|
Quantity
|
110
|
(8)
|
102
|
|
Price
|
(263)
|
-
|
(263)
|
|
Exchange rates
|
5
|
(14)
|
(9)
|
|
Energy
|
-
|
(1)
|
(1)
|
|
Transportation
|
-
|
15
|
15
|
|
Operating and other expenses
|
-
|
(13)
|
(13)
|
|
YTD 2020 figures
|
1,346
|
(1,226)
|
120
|
- |
Quantity – The positive impact on the segment’s operating income was primarily related to favorable site mix, as the increase in sales
volumes of potash from ICL Dead Sea, due to all-time annual production record and the facility shut-down for upgrade in the fourth quarter of 2019, more than offset lower sales volumes of potash from ICL Iberia due to the closure of the
Sallent site, as well as a decrease in sales of lower-margin products.
|
- |
Price – The negative impact on the segment’s operating income was primarily related to a decrease of $56 in the average realized price
per tonne of potash compared to the same period last year, as well as the downward price adjustment with respect to certain quantities of potash sold during 2019, in line with the potash supply contracts in China.
|
- |
Exchange rate – The negative impact on the segment’s operating income was primarily related to the appreciation of the average exchange
rate of the Israeli shekel and the British pound against the dollar, which increased operational costs. This was partly offset by the appreciation of the average exchange rate of the euro against the dollar, which contributed to the
segment's revenue more than it increased operational costs.
|
- |
Transportation – The positive impact on the segment’s operating income was primarily related to a decrease in marine and inland
transportation costs.
|
- |
Operating and other expenses – The negative impact on the segment's operating income was primarily due to COVID-19-related operating
costs, lower production in Spain and higher depreciation. This was partly offset by increased production at ICL Dead Sea and a reduction in certain costs as a result of the implementation of efficiency initiatives and measures by the
segment.
|
Thousands of Tonnes
|
2020
|
2019
|
Production
|
4,527
|
4,159
|
Total sales (including internal sales)
|
4,666
|
4,130
|
Closing inventory
|
275
|
414
|
− |
Production – Potash production in 2020 was 368 thousand tonnes higher than in the corresponding period last year. Annual record high
production at ICL Dead Sea was partially offset by lower production in ICL Iberia, mainly due to operational challenges related to COVID-19 and the closure of Sallent site.
|
− |
Sales – The quantity of potash sold in 2020 was 536 thousand tonnes higher than in the corresponding period last year, primarily due to
an increase in potash sales to China, India, Brazil and US.
|
2020
|
2019
|
|
$ millions
|
$ millions
|
Segment Sales
|
1,948
|
1,980
|
Sales to external customers
|
1,871
|
1,901
|
Sales to internal customers
|
77
|
79
|
Segment Profit
|
66
|
100
|
Depreciation and amortization
|
210
|
177
|
Capital expenditures*
|
275
|
326
|
Year Ended December 31,
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Europe
|
651
|
698
|
Asia
|
468
|
437
|
North America
|
371
|
370
|
South America
|
227
|
263
|
Rest of the world
|
154
|
133
|
Total
|
1,871
|
1,901
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
YTD 2019 figures
|
1,980
|
(1,880)
|
100
|
|
Quantity
|
63
|
(56)
|
7
|
|
Price
|
(110)
|
-
|
(110)
|
|
Exchange rates
|
15
|
(14)
|
1
|
|
Raw materials
|
-
|
70
|
70
|
|
Energy
|
-
|
(2)
|
(2)
|
|
Transportation
|
-
|
3
|
3
|
|
Operating and other expenses
|
-
|
(3)
|
(3)
|
|
YTD 2020 figures
|
1,948
|
(1,882)
|
66
|
- |
Quantity – The positive impact on the Segment’s operating income was primarily related to increased sales volumes of higher-margin
phosphate specialty products, mainly acids, phosphate-based food additives and dairy proteins, as well as an increase in the sales volumes of phosphate fertilizers. This was partly offset by the divestiture of the Hagesud business during
the second quarter of 2020, as well as lower sales volumes of phosphate rock.
|
- |
Price – The negative impact on the segment's operating income was primarily related to a significant decrease in the selling prices of
phosphate commodities products.
|
- |
Exchange rate – The positive impact on the segment’s operating income was primarily related to the devaluation of the average exchange
rate of the Brazilian real against the dollar, which decreased operational costs. Additionally, the appreciation of the average exchange rate of the euro and the Chinese yuan against the dollar contributed to the segment's revenue more
than it increased operational costs. The above trend was partly offset by the appreciation of the average exchange rate of the Israeli shekel against the dollar, which increased operational costs.
|
- |
Raw materials – The positive impact of raw material prices on the segment’s operating income was primarily related to lower prices of
sulphur consumed during the period.
|
2020
|
2019
|
|
$ millions
|
$ millions
|
Segment Sales
|
731
|
717
|
Sales to external customers
|
715
|
699
|
Sales to internal customers
|
16
|
18
|
Segment Profit
|
40
|
21
|
Depreciation and amortization
|
25
|
21
|
Capital expenditures*
|
20
|
30
|
Year Ended December 31,
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Europe
|
332
|
332
|
Asia
|
126
|
118
|
North America
|
103
|
95
|
South America
|
21
|
23
|
Rest of the world
|
133
|
131
|
Total
|
715
|
699
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
YTD 2019 figures
|
717
|
(696)
|
21
|
|
Quantity
|
15
|
(11)
|
4
|
|
Price
|
(8)
|
-
|
(8)
|
|
Exchange rates
|
7
|
(6)
|
1
|
|
Raw materials
|
-
|
19
|
19
|
|
Energy
|
-
|
-
|
-
|
|
Transportation
|
-
|
-
|
-
|
|
Operating and other expenses
|
-
|
3
|
3
|
|
YTD 2020 figures
|
731
|
(691)
|
40
|
|
- |
Quantity – The positive impact on the segment's operating income was primarily related to an increase in sales volumes of specialty
agriculture products, mainly in Europe and North America.
|
- |
Price – The negative impact on the segment's operating income was primarily related to a decrease in the selling prices of specialty
agriculture products, mainly liquid fertilizers.
|
- |
Exchange rate – The positive impact on the segment’s operating income was primarily related to the appreciation of the average exchange
rate of the euro and the Israeli shekel against the dollar, which contributed to the segment's revenue more than it increased operational costs.
|
- |
Raw materials – The positive impact on the segment's operating income was primarily related to lower costs of commodity fertilizers and
ammonia.
|
Year Ended December 31,
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Net cash provided by operating activities
|
804
|
992
|
Net cash used in investing activities
|
(583)
|
(525)
|
Net cash used in financing activities
|
(105)
|
(490)
|
• |
New flame retardants for printed wire boards: Development of new phosphorus‑based solutions for PWB according to new emerging demands from the
market, for example, Polyquel® P100. This is a polymeric phosphorus-based flame-retardant active ester curing agent for epoxy laminates with superior performance which is in the market development stage.
|
• |
Flame retardants for polyurethanes: development of new phosphorus‑based solutions and integrated phosphorus/bromine solutions as flame
retardants for the polyurethane market (flexible and rigid foam). for example: the VeriQuel™ F series, new flexible phosphorus-based active flame retardant for flexible polyurethane being launched to the market and VeriQuel™R100, new
reactive phosphorus-based flame retardant for rigid insulation foams in building and construction markets.
|
• |
Energy storage: continued development of bromine‑based energy storage solutions for Br-Battery companies, using diverse compounds.
|
• |
Biocides: continued development of new materials for water treatment and prevention of biofilm in industrial water-cooling systems and pulp
& paper plants. Promotion of the Bactesperse technology for pulp& paper, Reverse Osmosis membranes & cooling towers.
|
• |
Phosphorus‑based products: development of new phosphorus‑based solutions for hydraulic fluids.
|
• |
Magnesia-based products: development of formulations to fulfill unmet needs in the markets such as eliminating aluminum salt in deodorants, for
example, CareMag D, which is already in the market with one leading international company and another in the process of being launched. This product won the bronze medal for innovation in the last In‑Cosmetics International conference, or zinc oxide replacement in several consumer products.
|
• |
Additional products were developed for baby care applications (CareMag B) and a cosmetic face mask (CareMag M).
|
• |
Use of artificial intelligence for identifying new applications for bromine and bromine derivatives.
|
• |
Support of production: improving product quality, production cost, energy-saving,
recycling, and waste treatment. Changing and improving processes while using the principles of green chemistry.
|
• |
Implementing a new modified process for TBBA production.
|
• |
Troubleshooting and equipment maintenance cycle improvement using better construction materials preventing accelerated corrosion, wear and tear,
and equipment adaptation.
|
• |
Activities of efficiency and synergy measures in order to increase potash production and reducing cost per tonne at the potash and magnesium
plants in Sodom.
|
• |
Advancement of research regarding environmental protection, including development of methods for treating and reducing effluents.
|
• |
Analysis of alternative methods for increasing the production capacity of carnallite at the evaporation ponds.
|
• |
Implementation of the R&D department recommendations designed to clear bottlenecks, focused on the flotation and crystalizing areas, with
the purpose of increasing the production capacity in ICL Iberia.
|
• |
PotashpluS – optimization of the compaction process parameters, development at IFDC (International Fertilizer Development Center), and
increasing production capacity.
|
• |
Granular Polysulphate® – optimization of the process on two aspects: output and quality, as well as the implementation of a new organic coating.
|
• |
The segment continues to check the adaptation of various potential types of phosphate rock for the production of phosphoric acid and its
downstream products as part of an effort to utilize and increase existing phosphate reserves. In 2021, the Company will further analyze additional types of phosphate including R&D, pilots, plant testing activities, and other economic
feasibility assessments.
|
• |
Research regarding environmental protection, including the development of methods for treating and reducing effluents and applications for
Phosphogypsum uses.
|
• |
Integration of secondary source Phosphate technologies (circular economy) - immediate uses in the production facilities in Europe and
development of future sources for our fertilizer products.
|
• |
Development of fertilizers with higher agronomic nutrient efficiency (NUE).
|
• |
Development of a new PK fertilizer that is fully water soluble.
|
• |
R&D Food Specialties supported further growth in the traditional markets and application areas of Meat/Poultry/Seafood (MPS), Dairy, and
Bakery by expanding the footprint in emerging markets.
|
• |
Continued diversification of product portfolio for meat substitutes. In this context, ICL further developed and intensified its ROVITARIS®
alternative protein technology R&D resources in three areas: a new continuous process to produce vegan protein fibers was developed and will be implemented in a dedicated plant in the US in 2021. This product is suited for tender,
white meat imitations for chicken and fish replacements; the emulsion technology was successfully transitioned from vegetarian to vegan to emulate hotdogs, cold cuts, etc. The award-winning technology for ROVITARIS® textured proteins was
further improved in terms of quality to drive global roll-out outside the US.
|
• |
A dedicated Front-End Innovation group was founded, focusing on the identification of breakthrough ingredients in collaboration with big data
specialists to identify upcoming technologies.
|
• |
Improvement of the product portfolio with new product formulations; Mainly tailored formulations to customer demand.
|
• |
Development of controlled release NPK fertilizers with a quicker fully degradable coating.
|
• |
Development of applications for water conservation and improving availability of fertilizers around the root.
|
• |
Initiation and development of new technologies to increase nutrient use efficiency and plant growth
|
• |
Using sewage sludge ash for fertilizer production.
|
• |
Salt by-product utilization. As part of our normal operations, we are disposing 2.6 M cubic meters of salt from the potash production plants,
(excluding the salt harvesting project), we are looking for alternative areas to store it close to the areas where the salt is produced. The salt wall obstacle is being built along the border between Israel and Jordan and will provide us
with a close area to store salt (1.2 M cubic meters) while supporting IDF needs. Approximately 1 kilometer of the salt wall was already built.
|
• |
The ESK project is collecting APCr (Air Pollution Control residue) ashes from Waste to Energy plants casting them into blocks and using the
blocks as mine support materials replacing wood and steel.
|
• |
MagiK - Creating value from by-products. A new product was developed and marketed from a by-products stream that is created as part of
magnesium's production process.
|
• |
Fyrol® - a brand name for a range of phosphorus-containing flame retardants targeting flexible and rigid polyurethane foam applications.
|
• |
Joha® - a global trademark for dairy specialties, which specializes in emulsifying salts for processed cheese.
|
• |
Merquel® - a line of inorganic brominated salts which can be used to control mercury emissions from coal power plants.
|
• |
Osmocote® - a leading brand in the area of controlled released fertilizers which uses innovative technologies and is used globally by container
nursery stocks, pot- plant growers and more.
|
• |
Peters® - a brand of water soluble fertilizers, specifically designed for bedding-, pot- and container nursery plants.
|
• |
Tari® - a brand in the meat industry as well as in the artisan business which focuses on the production and processing of meat products with
functional additives, spices and flavors.
|
• |
Brifisol® - a global brand in the meat and seafood industries, which concentrates in improving texture by adding cryoprotectant for frozen food
products such as meat, shrimp, fish filets and more.
|
• |
Rovitaris® - a brand name for plant-based meat alternatives that are virtually indistinguishable from their traditional meat counterparts.
|
A. |
DIRECTORS AND OFFICERS
|
Name
|
Age
|
Commencement date as director
|
Yoav Doppelt(
|
52
|
December 2018 and as Chairman of the Board since July 2019
|
Aviad Kaufman
|
50
|
March 2014
|
Avisar Paz
|
64
|
April 2001
|
Lior Reitblatt
|
63
|
November 2017
|
Nadav Kaplan
|
75
|
August 2018
|
Ovadia Eli
|
76
|
August 2011
|
Reem Aminoach
|
59
|
March 2017
|
Ruth Ralbag
|
60
|
January 2018
|
Sagi Kabla
|
44
|
February 2016
|
Tzipi Ozer Armon
|
54
|
January 2020
|
Name
|
Age
|
Position
|
Raviv Zoller
|
57
|
President & Chief Executive Officer
|
Amir Meshulam(1)
|
44
|
Senior Vice President, Global Internal Auditor
|
Anantha N. Desikan
|
52
|
Executive Vice President, ICL Chief Innovation and Technology Officer
|
Anat Tal-Ktalav
|
52
|
President, ICL Industrial Products Division
|
Eli Amon
|
55
|
Executive Vice President, ICL Innovative Ag Solutions Division
|
Ilana Fahima
|
55
|
Executive Vice President, Chief People Officer
|
Kobi Altman
|
53
|
Chief Financial Officer
|
Lilach Geva-Harel
|
44
|
Executive Vice President, Global General Counsel
|
Miri Mishor
|
57
|
Senior Vice President, Global Information Technology
|
Nitzan Moshe
|
53
|
Executive Vice President, ICL Global Operations
|
Noam Goldstein
|
60
|
President, ICL Potash Division
|
Ofer Lifshitz
|
62
|
President, ICL Phosphate Solutions Division
|
(1) |
See C. Board Practices – Internal Auditor.
|
Grant for Year
|
Offerrees
|
Grant Date
|
Type of Equity(2)
|
Dates of Organs' Approvals
|
Grant Value (ILS) per Director
|
Grant Amount per Director
|
Expiration Date & Vesting Schedule
|
2020
|
Each of our directors who serve from time to time (excluding the Chairman of the Board & office holders of Israel Corp.)
|
23.4.2020
|
Restricted Shares
|
HR & Comp. Committee 3.11.19 & Board – 4.3.20
Shareholders (Annual GM) – 23.4.20
|
310,000
|
25,389
|
Vesting: 3 equal tranches, upon 12, 24 and 36 months from 1.1.2020 (and from 16.1.20
for Mrs. Ozer-Armon)
|
2020
|
Mr. Yoav Doppelt, Executive Chairman of the Board
|
1.7.2019
|
Options
|
HR & Comp. Committee & Board – 15.4.19
Shareholders (Extraordinary GM) – 29.5.19
|
3 million
|
2,168,675
|
Expiration Date: 30.6.2024
Vesting: one-half of the Options vesting upon the lapse of 24 months from Grant Date
and one-half upon the lapse of 36 months from the Grant Date
|
(1) |
The Equity awards are made pursuant to the Company’s Equity Compensation Plan (2014), as amended in June 2016.
|
(2) |
The shares are subject to restriction pursuant to Section 15C of the Securities Law.
|
Details of the Recipient
|
Payments for services
|
||||||
Name
|
Position
|
Scope of position
|
Base Salary(1)
|
Compensation(2)
|
Bonus (STI)(3)
|
Equity based compensation (LTI)(4)
|
Total
|
US$ thousands
|
|||||||
Raviv Zoller(5)
|
President & Chief Executive Officer
|
100%
|
672
|
997
|
636
|
1,738
|
3,371
|
Kobi Altman(6)
|
Chief Financial Officer
|
100%
|
390
|
534
|
349
|
486
|
1,369
|
Ofer Lifshitz(7)
|
President of Phosphate Solutions Division
|
100%
|
338
|
486
|
295
|
428
|
1,209
|
Anat Tal-Ktalav (8)
|
President of Industrial Products Division
|
100%
|
276
|
404
|
264
|
428
|
1,096
|
Yoav Doppelt(9)
|
Executive Chairman of the Board of Directors
|
-
|
-
|
-
|
-
|
1,041
|
1,041
|
(1) |
The annual base salary for the officers in the above table reflects the actual amounts that were paid following the Management Voluntary
Reduction.
|
(2) |
The salary items (compensation) column set out in the above table includes all of the following components: base salary, customary social
benefits, customary social and related provisions, Company car and reimbursement of telephone expenses. The compensation is in accordance with the Company's Compensation Policy.
|
(3) |
The short-term incentives (STI/annual bonuses) to officer holders for 2020, including the top-five earners in 2020, were approved by our HR
& Compensation Committee and Board of Directors on February 8 and February 17, 2021, respectively.
|
(4) |
The expense for share-based payment compensation is calculated according to IFRS and is recognized in the Company’s statement of income over the vesting period of each portion. The amounts reported in this
column represent the expense recorded in the Company’s financial statements for the year ended December 31, 2020 with respect to equity-based compensation granted to the senior officer. For details regarding the Company's equity
compensation plans, see Note 19 to our Audited Financial Statements.
|
(5) |
Mr. Zoller’s terms of employment, as approved by our
authorized organs, include: (a) annual base
salary of NIS 2.4 million (approximately $708,000), indexed to the Israeli Consumer Price Index (CPI). Mr. Zoller's annual base salary as of December 31, 2020 remained NIS 2.4 million (approximately $708,000). Mr. Zoller's monthly
base salary, as of December 31, 2020, was approximately NIS 202,800 (approximately $59,000), however, during the six-month period of May-October 2020, Mr. Zoller's base salary was reduced by 10% in view of the Management Voluntary
Reduction; (b) annual cash bonus in accordance with ICL’s bonus plan and Compensation Policy. Mr. Zoller’s Target Bonus as per his employment agreement is NIS 2.5 million (approximately $778,000), with the maximum annual bonus that
can amount to NIS 3.75 million (approximately $1.17 million). For details regarding Mr. Zoller's annual bonus in 2020, see the Annual Bonus Component section below; (c) an annual LTI (equity) grant of NIS 4.8 million (approximately
$1.34 million). For details regarding Mr. Zoller's equity compensation grants, see Note 19 to our Audited Financial Statements; (d) Mr. Zoller is entitled to an advance notice period of 12 months in case of termination by the Company
(not for cause) and is required to give the Company 6 months advance notice in case he resigns. During such advance notice period Mr. Zoller may be required to continue working for ICL, and therefore Mr. Zoller would continue to be
entitled to all of his compensation terms, excluding an annual bonus in respect of the advanced notice period and excluding an equity grant, to the extent granted during such advance notice period; (e) in addition, in case of
termination of office, Mr. Zoller will be entitled to an additional severances equal to his last his last base salary multiplied by the number of years that he served as ICL’s President & CEO; (f) Mr. Zoller is entitled to all
other cash and non-cash benefits payable to our senior executives pursuant to our policies in effect from time to time, including but not limited to, pension, study fund, disability insurance, Company car, gross up, etc., as well as
the exemption, insurance and indemnification arrangements applying to the Company’s office holders.
|
(6) |
Mr. Kobi Altman serves as ICL’s Chief Financial Officer (CFO) as of April 1, 2015. Mr. Altman’s employment agreement provides that: (a) Mr. Altman’s base salary will be updated twice a year
according to the rise in the Consumer Price Index in the months that passed since the previous update. Mr. Altman’s monthly base salary, as of December 31, 2020, was approximately NIS 117,750 (approximately $34,250) however, during the
six-month period of May-October 2020, Mr. Altman's base salary was reduced by 10% in view of the Management Voluntary Reduction; (b) the employment agreement is for an unlimited period and may be terminated by either party at any time
by advance written notice; (c) Mr. Altman is entitled to an advance notice period of 6 months; and (d) Mr. Altman is entitled to all benefits customary in the Company, such as regular provisions for pension and severance, disability
fund, Company car.
|
(7) |
Mr. Lifshitz’s employment agreement provides that: (a) Mr. Lifshitz’s base salary may be updated twice a year according to the rise in the Consumer Price Index in the months that passed since the previous
update. Mr. Lifshitz’s monthly base salary, as of December 31, 2020, was approximately NIS 102,060 (approximately $31,700), however, during the six-month period of May-October 2020, Mr. Lifshitz's base salary was reduced by 10% in
view of the Management Voluntary Reduction; (b) the employment agreement is for an unlimited period and may be terminated by either party at any time by advance written notice; (c) Mr. Lifshitz is entitled to an advance notice period
of 3 months; and (d) Mr. Lifshitz is entitled to all benefits customary in the Company, such as regular provisions for pension and severance, disability fund, Company car.
|
(8) |
Mrs. Tal-Ktalav’s employment agreement provides that: (a) Mrs. Tal-Ktalav base salary may be updated twice a year according to the rise in the Consumer Price Index in the months that passed since the previous
update. Mrs. Tal-Ktalav monthly base salary, as of December 31, 2020, was approximately NIS 83,100 (approximately $25,800). however, during the six-month period of May-October 2020, Mrs. Tal-Ktalav's base salary was reduced by 10% in
view of the Management Voluntary Reduction; (b) the employment agreement is for an unlimited period and may be terminated by either party at any time by advance written notice; (c) Mrs. Tal-Ktalav is entitled to an advance notice
period of 6 months; and (d) Mrs. Tal-Ktalav is entitled to all benefits customary in the Company, such as regular provisions for pension and severance, disability fund, Company car and gross up.
|
(9) |
Mr. Yoav Doppelt compensation terms, as approved by our authorized organs, include: (a) LTI in the form of stock options only, at the
value of NIS 9 million (approximately $2.8 million) for the years 2019-2021 (NIS 3 million (approximately $933,100) per vesting annum); (b) In the event of termination of Mr. Doppelt's term of office as Executive Chairman of the Board his
LTI grants will continue to vest for a period of 12 months following the termination.
|
Number of meetings in reported year
|
Average Attendance
|
|
Board of Directors
|
22
|
96%
|
Audit & Accounting Committee
|
11
|
97%
|
HR & Compensation Committee
|
6
|
100%
|
Financing Committee
|
2
|
100%
|
Operations Committee
|
2
|
100%
|
Environment, Safety and Public Affairs Committee
|
3
|
100%
|
2020
|
2019
|
2018
|
Phosphate Solutions
|
4,601
|
4,867
|
4,923
|
Potash
|
2,491
|
2,541
|
2,524
|
Industrial Product
|
1,654
|
948
|
927
|
Innovative Ag Solutions
|
994
|
1,651
|
1,606
|
Global functions and headquarters
|
1,092
|
1,083
|
1,062
|
Sub Total
|
10,832
|
11,090
|
11,042
|
Temporary employees
|
912
|
1,027
|
1,083
|
Total employees
|
11,744
|
12,117
|
12,125
|
2020
|
2019
|
2018
|
Israel
|
4,401
|
4,507
|
4,431
|
China
|
2,048
|
2,064
|
2,068
|
Spain
|
868
|
892
|
901
|
USA
|
716
|
720
|
707
|
Germany
|
697
|
858
|
856
|
UK
|
670
|
658
|
644
|
Netherlands
|
584
|
584
|
539
|
Brazil
|
259
|
262
|
255
|
France
|
117
|
119
|
118
|
All other
|
472
|
426
|
523
|
Sub Total
|
10,832
|
11,090
|
11,042
|
Temporary employees
|
912
|
1,027
|
1,083
|
Total employees
|
11,744
|
12,117
|
12,125
|
Ordinary Shares
Beneficially Owned(1) |
Special State
Share |
|||
Shareholders
|
Number
|
%
|
Number
|
%
|
Israel Corporation Ltd.(2)
|
587,178,758
|
45.85%**
|
-
|
-
|
State of Israel(3)
|
-
|
-
|
1
|
100%
|
Yoav Doppelt
|
10,254
|
*
|
-
|
-
|
Avisar Paz
|
8,463
|
*
|
-
|
-
|
Aviad Kaufman
|
-
|
*
|
-
|
-
|
Sagi Kabla
|
-
|
*
|
-
|
-
|
Ovadia Eli
|
77,913
|
*
|
-
|
-
|
Nadav Kaplan
|
13,337
|
*
|
-
|
-
|
Lior Reitblatt
|
40,292
|
*
|
-
|
-
|
Reem Aminoach
|
40,292
|
*
|
-
|
-
|
Ruth Ralbag
|
40,292
|
*
|
-
|
-
|
Tzipi Ozer Armon
|
8,111
|
*
|
-
|
-
|
Raviv Zoller(4)
|
337,023
|
*
|
-
|
-
|
Kobi Altman(5)
|
1,028,851
|
*
|
-
|
-
|
Lilach Geva Harel(6)
|
422,535
|
*
|
-
|
-
|
Ilana Fahima(7)
|
422,535
|
*
|
-
|
-
|
Eli Amon(8)
|
555,272
|
*
|
-
|
-
|
Nitzan Moshe(9)
|
136,512
|
*
|
-
|
-
|
Ofer Lifshitz(10)
|
1,012,115
|
*
|
-
|
-
|
Anantha Desikan(11)
|
435,613
|
*
|
-
|
-
|
Noam Goldstein(12)
|
765,855
|
*
|
-
|
-
|
Anat Tal-Ktalav(13)
|
858,546
|
*
|
-
|
-
|
Amir Meshulam(14)
|
231,163
|
*
|
-
|
-
|
Miri Mishor(15)
|
296,747
|
*
|
-
|
-
|
(1) |
The percentages shown are based on 1,280,751,147 ordinary shares issued and outstanding as of February 28, 2021 (after excluding shares held by
us or our subsidiaries). In accordance with SEC rules, beneficial ownership includes voting or investment power with respect to securities and includes the shares issuable pursuant to options that are exercisable within 60 days of the
date of February 28, 2021. Shares issuable pursuant to options are deemed outstanding for computing the percentage of the person holding such options but are not considered outstanding for computing the percentage of any other person.
|
(2) |
Israel Corp. is a public company listed for trading on the Tel Aviv Stock Exchange (TASE). Based on the information provided by Israel Corp.,
Millenium Investments Elad Ltd. (“Millenium”) and Mr. Idan Ofer are considered as joint controlling shareholders of Israel Corp., for purposes of the Israeli Securities Law (each of Millenium and Mr. Idan Ofer hold shares in Israel Corp.
directly, and Mr. Idan Ofer serves as a director of Millenium and has an indirect interest in it as the beneficiary of the discretionary trust that has indirect control of Millenium, as detailed below). Millenium holds approximately
46.94% of the share capital in Israel Corp., which holds as at December 31, 2020 approx. 45.85% of the voting rights and issued share capital of the Company. Millenium is held by Mashat Investments Ltd. (“Mashat”) and by XT
Investments Ltd. (“XT Investments”), with 80% and 20% holding rates in the issued share capital, respectively (It is noted that Mashat granted XT Investments a power of attorney for a fixed period (which is extendable) to vote according
to XT's discretion at General Meetings of Millenium in respect of shares constituting 5% of the voting rights in Millenium). Mashat is wholly owned by Ansonia Holdings Singapore B.V. (“Ansonia”) which is incorporated in the Netherlands.
Ansonia is a wholly owned subsidiary of Jelany Corporation N.V. (registered in Curaçao), which is a wholly owned subsidiary of the Liberian company, Court Investments Ltd. (“Court”). Court is wholly owned by a discretionary trust, in
which Mr. Idan Ofer is the beneficiary. XT Investments is fully held by XT Holdings Ltd. (“XT Holdings”), a private company whose ordinary shares are held in equal shares by Orona Investments Ltd. (which is indirectly controlled by
Mr. Ehud Angel) and by Lynav Holdings Ltd., a company that is controlled by a discretionary trust in which Mr. Idan Ofer is the beneficiary. Mr. Ehud Angel holds, among other things, a special share that grants him, inter alia, under
certain limitations and for certain issues, an additional vote on the Board of Directors of XT Holdings. In addition, Kirby Enterprises Inc., which is indirectly held by the same trust that holds Mashat, in which, as stated, Mr. Idan Ofer
is the beneficiary, holds approximately 0.74% of the share capital of Israel Corp. Furthermore, Mr. Idan Ofer holds directly approximately 3.85% of the share capital of Israel Corp.
|
(3) |
For a description of the different voting rights held by the holder of the Special State Share, see “Item 10 - Additional Information— B.
Memorandum, Articles of Association and Special State Share — The Special State Share.”
|
(4) |
Includes 80,613 ordinary shares and 256,410 ordinary shares subject to options that are currently exercisable or will be exercisable within 60
days of the date of the table.
|
(5) |
Includes 112,703 ordinary shares and 916,148 ordinary shares subject to options that are currently exercisable or will be exercisable within 60
days of the date of the table.
|
(6) |
Includes 422,535 ordinary shares subject to options that are currently exercisable or will be exercisable within 60 days of the date of the
table.
|
(7) |
Includes 422,535 ordinary shares subject to options that are currently exercisable or will be exercisable within 60 days of the date of the
table.
|
(8) |
Includes 55,018 ordinary shares and 500,254 ordinary shares subject to options that are currently exercisable or will be exercisable within 60
days of the date of the table.
|
(9) |
Includes 28,536 ordinary shares and 107,976 ordinary shares subject to options that are currently exercisable or will be exercisable within 60
days of the date of the table.
|
(10) |
Includes 110,605 ordinary shares and 901,510 ordinary shares subject to options that are currently exercisable or will be exercisable within 60
days of the date of the table.
|
(11) |
Includes 55,970 ordinary shares and 379,643 ordinary shares subject to options that are currently exercisable or will be exercisable within 60
days of the date of the table.
|
(12) |
Includes 51,900 ordinary shares and 713,955 ordinary shares subject to options that are currently exercisable or will be exercisable within 60
days of the date of the table.
|
(13) |
Includes 87,310 ordinary shares and 771,236 ordinary shares subject to options that are currently exercisable or will be exercisable within 60
days of the date of the table.
|
(14) |
Includes 19,123 ordinary shares and 212,040 ordinary shares subject to options that are currently exercisable or will be exercisable within 60
days of the date of the table.
|
(15) |
Includes 41,937 ordinary shares and 254,810 ordinary shares subject to options that are currently exercisable or will be exercisable within 60
days of the date of the table.
|
• |
The composition of our Board of Directors (other than external directors, as described under “Item 6 - Directors, Senior Management and
Employees— C. Board Practices— External Directors”);
|
• |
Mergers or other business combinations;
|
• |
Certain future issuances of ordinary shares or other securities; and
|
• |
Amendments to our Articles of Association, excluding provisions of the Articles of Association that were determined by the Special State Share.
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Sales
|
3
|
4
|
5
|
Cost of sales
|
3
|
8
|
19
|
Selling, transport and marketing expenses
|
7
|
10
|
7
|
Financing expenses (income), net
|
(1)
|
(1)
|
3
|
General and administrative expenses
|
1
|
1
|
1
|
Management fees to the parent company
|
1
|
1
|
1
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Other current assets
|
35
|
27
|
Other current liabilities
|
2
|
2
|
A. |
CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION
|
1. |
On January 10, 2018, an application for certification of a derivative action was filed by a shareholder of Oil Refineries Ltd. (“Bazan”) with
the Tel Aviv-Yafo District Court, against former and current board members of Bazan, OPC Energy Ltd. OPC Rotem Ltd., OPC Hadera Ltd. and the Company, (hereinafter, jointly: the “Additional Companies”), and against Israel Corporation Ltd.,
Mr. Idan Ofer and Mr. Ehud Angel (the “Application”).
|
2. |
On January 18, 2018 the Company has been served an application filed by a shareholder (the "Applicant") with the Tel Aviv District Court,
seeking the Court’s approval to file suit on behalf of the Company as a derivative action against three current and former officeholders of its subsidiary, Dead Sea Works (“DSW”) (hereinafter: the “Application”).
|
1. |
According to the announcement issued by the Company on May 10, 2017, ICL Europe Coöperatief U.A. (“ICL Europe”), a subsidiary of the Company,
filed a Notice of Arbitration against the Federal Democratic Republic of Ethiopia ("Ethiopia") under the Agreement of Encouragement and Reciprocal Protection of Investments between the Ethiopia and the Kingdom of the Netherlands ("the
Ethiopia- Netherlands BIT"). A three-member arbitration tribunal ("Tribunal") was constituted under the Arbitration Rules of the United Nations Commission on International Trade Law ("UNCITRAL Rules") to hear the case, which is being
administered by the Permanent Court of Arbitration located in The Hague, the Netherlands. Following ICL Europe's filing of Notice of Arbitration on May 10, 2017 and Ethiopia's response thereto on June 12, 2017, ICL Europe submitted to the
Tribunal on June 19, 2018, its Statement of Claim seeking compensation in the amount of $181 million plus interest for damage its claims as a result of Ethiopia's coercive, arbitrary, discriminatory and unlawful conduct, culminating in
the imposition without legal basis of a purported tax on ICL Europe's indirectly owned Ethiopian company, Allana Potash Afar Plc, and Ethiopia's violation of multiple provisions of the Ethiopia- Netherlands BIT, including the requirements
to accord fair and equitable treatment to ICL Europe's investment, to provide full protection and security to ICL Europe's investment and not to expropriate unlawfully ICL Europe's investment. Ethiopia submitted to the Tribunal on October
19, 2018, its Statement of Defense and Objections to Jurisdiction. Among other things, Ethiopia argues that ICL Europe failed to make its investment in compliance with Ethiopian law and that the Tribunal lacks jurisdiction under the
Ethiopia-Netherlands BIT as a result, that the challenged tax was lawful and does not provide a basis for presenting a claim under the Ethiopia- Netherlands BIT and that ICL terminated its investment for reasons unrelated to any of the
alleged unlawful acts and omissions of Ethiopia. On August 12, 2019, ICL submitted its Reply in support of its claims against Ethiopia and in response to which Ethiopia submitted on November 25, 2019 its Rejoinder. Due to the emergence of
the COVID-19 pandemic the Tribunal decided on June 19, 2020 that the hearing would proceed in two phases, in August and December 2020, with the first phase to proceed by videoconference and with the examination of Ethiopia’s fact
witnesses deferred to the second phase of the hearing. On August 13, 2020, the first phase was completed and on December 8, 2020, the second phase was completed (also by videoconference). It is not possible to predict the outcome of this
proceeding at this time.
|
2. |
In August 2019, the Company's subsidiaries: Rotem Amfert Negev Ltd., Dead Sea Works Ltd. and Bromine Compounds Ltd. (the “Applicants”) filed an application to join the Petition (the "Application") that was
filed by the Manufacturers Association of Israel with the Be’er Sheva District Court in May 2019 (the “Petition”), on behalf of its members' operations in the Ashdod Port in Israel, including the Applicants, against the decision to
approve a plan for the construction of a residential area in proximity to the Ashdod Port and facilities thereof (the "Plan"). The Company's Application was denied by the Court, however, on November 10, 2019, the Court rendered its
ruling whereby it accepted the Petition and cancelled the decision to approve the Plan. On December 23, 2019 the Ashdod Municipality and the Ashdod Local Planning and Building Committee have appealed to the Supreme Court (the "Appeal").
On November 29, 2020, the parties to the Appeal reached a settlement agreement by which the district court's ruling will be revoked, the Plan will take effect and the Land Authority undertakes not to market some of the plots in the Plan
(those near the port) for residential purposes. The Land Authority has kept the option for planning change of those plots and in such case the parties reserve all rights and claims in respect to such planning change. On the same day the
Supreme Court gave effect of a judgment to the settlement agreement entered by the parties.
|
◾ |
To preserve the character of the Company and its subsidiaries ICL Dead Sea, ICL Rotem, Dead Sea Bromine Company, Bromine Compounds and Tami as
Israeli companies whose centers of business and management are in Israel. In our estimation, this condition is met.
|
◾ |
To monitor the control over minerals and natural resources, for purposes of their efficient development and utilization, including maximum
utilization in Israel of the results of investments, research and development.
|
◾ |
To prevent acquisition of a position of influence in the Company or the foregoing Israeli subsidiaries by hostile entities or entities likely to
harm the foreign and security interests of the State of Israel.
|
◾ |
To prevent acquisition of a position of influence in the Company or the foregoing Israeli subsidiaries or management of such companies, whereby
such acquisition or management may create a situation of significant conflicts of interest likely to harm any of the vital interests enumerated above.
|
• |
certain financial institutions;
|
• |
dealers or traders in securities that use a mark-to-market method of tax accounting;
|
• |
persons holding ordinary shares as part of a “straddle” or integrated transaction or persons entering into a constructive sale with respect to
the ordinary shares;
|
• |
persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;
|
• |
entities classified as partnerships for U.S. federal income tax purposes;
|
• |
tax exempt entities, “individual retirement accounts” or “Roth IRAs":
|
• |
Persons who acquired our ordinary shares pursuant to the exercise of an employee stock option or otherwise as compensation;
|
• |
persons that own or are deemed to own 10% or more of our stock by vote or value; or
|
• |
persons holding our ordinary shares in connection with a trade or business conducted outside of the United States.
|
• |
a citizen or individual resident of the United States;
|
• |
a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state therein or
the District of Columbia; or
|
• |
an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
USD/NIS
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of 5%
|
Decrease of 5%
|
Decrease of 10%
|
Cash and cash equivalents
|
(0.2)
|
(0.1)
|
2.2
|
0.1
|
0.2
|
Trade receivables
|
(5.3)
|
(2.8)
|
58.0
|
3.1
|
6.4
|
Receivables and debit balances
|
(0.6)
|
(0.3)
|
6.7
|
0.4
|
0.7
|
Credit from banks and others
|
3.3
|
1.7
|
(35.8)
|
(1.9)
|
(4.0)
|
Trade payables
|
29.6
|
15.5
|
(325.8)
|
(17.1)
|
(36.2)
|
Other payables
|
1.5
|
0.8
|
(17.0)
|
(0.9)
|
(1.9)
|
Long-term loans
|
12.4
|
6.5
|
(135.9)
|
(7.2)
|
(15.1)
|
Fixed rate debentures
|
67.9
|
35.6
|
(747.4)
|
(39.3)
|
(83.0)
|
Options
|
(26.1)
|
(13.6)
|
11.2
|
19.2
|
43.9
|
Forward
|
(39.0)
|
(20.4)
|
8.1
|
22.6
|
47.7
|
Swap
|
(81.7)
|
(43.0)
|
115.2
|
47.8
|
101.0
|
Total
|
(38.2)
|
(20.1)
|
(1,060.5)
|
26.8
|
59.7
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
EUR/USD
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of
5%
|
Decrease of 5%
|
Decrease of 10%
|
Cash and cash equivalents
|
(1.2)
|
(0.6)
|
12.8
|
0.7
|
1.4
|
Short term deposits and loans
|
(0.5)
|
(0.2)
|
5.0
|
0.3
|
0.6
|
Trade receivables
|
(20.7)
|
(10.8)
|
227.4
|
12.0
|
25.3
|
Receivables and debit balances
|
(3.7)
|
(1.9)
|
40.6
|
2.1
|
4.5
|
Long-term deposits and loans
|
(0.2)
|
(0.1)
|
2.5
|
0.1
|
0.3
|
Credit from banks and others
|
6.4
|
3.3
|
(70.0)
|
(3.7)
|
(7.8)
|
Trade payables
|
14.9
|
7.8
|
(163.5)
|
(8.6)
|
(18.2)
|
Other payables
|
6.2
|
3.2
|
(68.0)
|
(3.6)
|
(7.6)
|
Long-term loans from banks
|
3.3
|
1.7
|
(35.9)
|
(1.9)
|
(4.0)
|
Options
|
3.8
|
2.1
|
(1.5)
|
(2.8)
|
(6.1)
|
Forward
|
13.6
|
7.1
|
(0.1)
|
(7.9)
|
(16.6)
|
Swap
|
33.4
|
17.5
|
(41.1)
|
(19.4)
|
(40.9)
|
Total
|
55.3
|
29.1
|
(91.8)
|
(32.7)
|
(69.1)
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
GBP/USD
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of
5%
|
Decrease of 5%
|
Decrease of 10%
|
Cash and cash equivalents
|
(0.5)
|
(0.2)
|
5.0
|
0.3
|
0.6
|
Trade receivables
|
(3.2)
|
(1.7)
|
35.1
|
1.8
|
3.9
|
Credit from banks and others
|
7.7
|
4.0
|
(84.7)
|
(4.5)
|
(9.4)
|
Trade payables
|
2.0
|
1.0
|
(21.5)
|
(1.1)
|
(2.4)
|
Other payables
|
0.3
|
0.2
|
(3.6)
|
(0.2)
|
(0.4)
|
Long-term loans
|
2.0
|
1.1
|
(22.3)
|
(1.2)
|
(2.5)
|
Swap
|
(6.2)
|
(3.3)
|
5.0
|
3.6
|
7.6
|
Options
|
(0.8)
|
(0.4)
|
0.4
|
0.5
|
1.1
|
Forward
|
(2.5)
|
(1.3)
|
0.3
|
1.4
|
3.0
|
Total
|
(1.2)
|
(0.6)
|
(86.3)
|
0.6
|
1.5
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
BRL/USD
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of
5%
|
Decrease of 5%
|
Decrease of 10%
|
Cash and cash equivalents
|
(0.6)
|
(0.3)
|
6.4
|
0.3
|
0.7
|
Trade receivables
|
(1.9)
|
(1.0)
|
21.4
|
1.1
|
2.4
|
Trade payables
|
1.0
|
0.5
|
(11.0)
|
(0.6)
|
(1.2)
|
Long-term deposits and loans
|
(0.3)
|
(0.2)
|
3.6
|
0.2
|
0.4
|
Other payables
|
0.0
|
0.0
|
(0.1)
|
0.0
|
0.0
|
Long-term loans from banks
|
0.8
|
0.4
|
(8.9)
|
(0.5)
|
(1.0)
|
Options
|
(0.2)
|
(0.2)
|
0.2
|
0.2
|
0.2
|
Forward
|
0.1
|
0.0
|
0.0
|
(0.1)
|
(0.1)
|
Total
|
(1.1)
|
(0.8)
|
11.6
|
0.6
|
1.4
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
CNY/USD
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of
5%
|
Decrease of 5%
|
Decrease of 10%
|
Cash and cash equivalents
|
(5.5)
|
(2.9)
|
60.2
|
3.2
|
6.7
|
Short term investments and deposits
|
(0.3)
|
(0.2)
|
3.7
|
0.2
|
0.4
|
Trade receivables
|
(4.6)
|
(2.4)
|
51.1
|
2.7
|
5.7
|
Investments at fair value through other comprehensive income
|
(12.3)
|
(6.5)
|
135.7
|
7.1
|
15.1
|
Trade payables
|
6.0
|
3.2
|
(66.3)
|
(3.5)
|
(7.4)
|
Other payables
|
2.4
|
1.2
|
(26.0)
|
(1.4)
|
(2.9)
|
Credit from banks and others
|
5.6
|
2.9
|
(61.9)
|
(3.3)
|
(6.9)
|
Long-term loans (CNY)
|
5.4
|
2.8
|
(59.8)
|
(3.1)
|
(6.6)
|
Forward
|
2.1
|
1.1
|
(0.2)
|
(1.2)
|
(2.6)
|
Total
|
(1.2)
|
(0.8)
|
36.5
|
0.7
|
1.5
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
USD/NIS
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of 5%
|
Decrease of 5%
|
Decrease of 10%
|
Cash and cash equivalents
|
(0.3)
|
(0.2)
|
3.7
|
0.2
|
0.4
|
Short term deposits and loans
|
0.0
|
0.0
|
0.1
|
0.0
|
0.0
|
Trade receivables
|
(4.5)
|
(2.4)
|
49.5
|
2.6
|
5.5
|
Receivables and debit balances
|
(0.3)
|
(0.1)
|
3.1
|
0.2
|
0.3
|
Credit from banks and others
|
4.4
|
2.3
|
(48.5)
|
(2.6)
|
(5.4)
|
Trade payables
|
22.4
|
11.7
|
(246.6)
|
(13.0)
|
(27.4)
|
Other payables
|
4.3
|
2.2
|
(47.0)
|
(2.5)
|
(5.2)
|
Long-term loans
|
7.1
|
3.7
|
(77.6)
|
(4.1)
|
(8.6)
|
Fixed rate debentures
|
43.3
|
22.7
|
(476.5)
|
(25.1)
|
(52.9)
|
Options
|
(37.5)
|
(8.1)
|
3.5
|
22.0
|
51.9
|
Forward
|
(28.1)
|
(14.7)
|
0.4
|
16.3
|
34.4
|
Swap
|
(51.8)
|
(27.1)
|
57.6
|
30.0
|
63.4
|
Total
|
(41.0)
|
(10.0)
|
(778.3)
|
24.0
|
56.4
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
EUR/USD
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of
5%
|
Decrease of 5%
|
Decrease of 10%
|
Cash and cash equivalents
|
(1.7)
|
(0.9)
|
19.1
|
1.0
|
2.1
|
Short term deposits and loans
|
(0.1)
|
0.0
|
0.6
|
0.0
|
0.1
|
Trade receivables
|
(16.0)
|
(8.4)
|
176.5
|
9.3
|
19.6
|
Receivables and debit balances
|
(1.5)
|
(0.8)
|
16.2
|
0.9
|
1.8
|
Long-term deposits and loans
|
(0.1)
|
(0.1)
|
1.1
|
0.1
|
0.1
|
Credit from banks and others
|
8.6
|
4.5
|
(95.0)
|
(5.0)
|
(10.6)
|
Trade payables
|
16.2
|
8.5
|
(178.5)
|
(9.4)
|
(19.8)
|
Other payables
|
4.0
|
2.1
|
(44.0)
|
(2.3)
|
(4.9)
|
Long-term loans from banks
|
6.6
|
3.4
|
(72.1)
|
(3.8)
|
(8.0)
|
Options
|
4.2
|
1.9
|
0.2
|
(1.8)
|
(4.3)
|
Forward
|
6.8
|
3.2
|
(0.7)
|
(2.9)
|
(5.6)
|
Swap
|
45.0
|
22.5
|
(2.5)
|
(22.5)
|
(45.0)
|
Total
|
72.0
|
35.9
|
(179.1)
|
(36.4)
|
(74.5)
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
GBP/USD
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of
5%
|
Decrease of 5%
|
Decrease of 10%
|
Cash and cash equivalents
|
(0.4)
|
(0.2)
|
4.4
|
0.2
|
0.5
|
Trade receivables
|
(3.4)
|
(1.8)
|
37.0
|
1.9
|
4.1
|
Receivables and debit balances
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
Credit from banks and others
|
1.6
|
0.9
|
(18.1)
|
(1.0)
|
(2.0)
|
Trade payables
|
2.0
|
1.0
|
(21.8)
|
(1.1)
|
(2.4)
|
Other payables
|
0.3
|
0.2
|
(3.7)
|
(0.2)
|
(0.4)
|
Options
|
(1.5)
|
(0.4)
|
0.2
|
0.6
|
1.2
|
Forward
|
(3.6)
|
(1.7)
|
0.4
|
1.5
|
3.0
|
Total
|
(5.0)
|
(2.0)
|
(1.6)
|
1.9
|
4.0
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
GBP/EUR
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of
5%
|
Decrease of 5%
|
Decrease of 10%
|
Forward
|
(0.5)
|
(0.3)
|
0.0
|
0.3
|
0.6
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
BRL/USD
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of
5%
|
Decrease of 5%
|
Decrease of 10%
|
Cash and cash equivalents
|
(0.5)
|
(0.3)
|
5.9
|
0.3
|
0.7
|
Trade receivables
|
(2.0)
|
(1.0)
|
22.0
|
1.2
|
2.4
|
Trade payables
|
0.8
|
0.4
|
(9.2)
|
(0.5)
|
(1.0)
|
Other payables
|
0.0
|
0.0
|
(0.3)
|
0.0
|
0.0
|
Long-term loans from banks
|
1.0
|
0.5
|
(11.0)
|
(0.6)
|
(1.2)
|
Forward
|
1.7
|
0.9
|
(0.2)
|
(1.0)
|
(2.0)
|
Total
|
1.0
|
0.5
|
7.2
|
(0.6)
|
(1.1)
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
CNY/USD
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Type of instrument
|
Increase of 10%
|
Increase of
5%
|
Decrease of 5%
|
Decrease of 10%
|
Cash and cash equivalents
|
(3.0)
|
(1.6)
|
33.0
|
1.7
|
3.7
|
Trade receivables
|
(4.4)
|
(2.3)
|
48.0
|
2.5
|
5.3
|
Receivables and debit balances
|
(3.7)
|
(1.9)
|
40.5
|
2.1
|
4.5
|
Trade payables
|
7.2
|
3.8
|
(79.2)
|
(4.2)
|
(8.8)
|
Other payables
|
1.1
|
0.6
|
(12.2)
|
(0.6)
|
(1.4)
|
Credit from banks and others
|
4.3
|
2.2
|
(46.8)
|
(2.5)
|
(5.2)
|
Forward
|
2.5
|
1.3
|
(0.2)
|
(1.5)
|
(3.1)
|
Long-term loans (CNY)
|
5.8
|
3.0
|
(63.7)
|
(3.4)
|
(7.1)
|
Total
|
9.8
|
5.1
|
(80.6)
|
(5.9)
|
(12.1)
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
|
Type of instrument
|
Increase of
1%
|
Increase of 0.5%
|
Decrease of 0.5%
|
Decrease of 1%
|
Fixed-USD interest debentures
|
108.0
|
55.8
|
(1,419.1)
|
(59.8)
|
(124.0)
|
Swap transactions
|
5.9
|
3.0
|
(13.1)
|
(3.0)
|
(6.1)
|
NIS/USD swap
|
36.6
|
18.8
|
115.2
|
(19.5)
|
(39.5)
|
GBP/USD swap
|
0.2
|
0.1
|
5.0
|
(0.1)
|
(0.2)
|
EUR/USD swap
|
(0.9)
|
(0.5)
|
(41.1)
|
0.5
|
1.0
|
Total
|
149.8
|
77.2
|
(1,353.1)
|
(81.9)
|
(168.8)
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
|
Type of instrument
|
Increase of
1%
|
Increase of 0.5%
|
Decrease of 0.5%
|
Decrease of 1%
|
Fixed-USD interest debentures
|
90.3
|
46.7
|
(1,210.9)
|
(49.9)
|
(103.4)
|
Swap transactions
|
6.7
|
3.4
|
(6.0)
|
(3.5)
|
(7.0)
|
NIS/USD swap
|
13.4
|
6.8
|
57.4
|
(6.9)
|
(14.0)
|
EUR/USD swap
|
(0.3)
|
(0.1)
|
(2.5)
|
0.1
|
0.3
|
Total
|
110.1
|
56.8
|
(1,162.0)
|
(60.2)
|
(124.1)
|
Sensitivity to changes in the shekel interest rate
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
||
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
|
Type of instrument
|
Increase of
1%
|
Increase of 0.5%
|
Decrease of 0.5%
|
Decrease of 1%
|
Fixed-interest long-term loan
|
1.9
|
0.9
|
(135.9)
|
(1.0)
|
(1.9)
|
Fixed rate debentures
|
31.6
|
16.2
|
(747.4)
|
(17.1)
|
(35.1)
|
NIS/USD swap
|
(42.4)
|
(22.1)
|
115.2
|
23.8
|
49.0
|
Total
|
(8.9)
|
(5.0)
|
(768.1)
|
5.7
|
12.0
|
Sensitivity to changes in the shekel interest rate
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
||
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
|
Type of instrument
|
Increase of
1%
|
Increase of 0.5%
|
Decrease of 0.5%
|
Decrease of 1%
|
Fixed-interest long-term loan
|
2.5
|
1.2
|
(77.6)
|
(1.3)
|
(2.6)
|
Fixed rate debentures (series E)
|
12.3
|
6.2
|
(476.5)
|
(6.4)
|
(12.8)
|
NIS/USD swap
|
(15.5)
|
(7.8)
|
57.6
|
8.0
|
16.2
|
Total
|
(0.7)
|
(0.4)
|
(496.5)
|
0.3
|
0.8
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
|
Type of instrument
|
Increase of
10%
|
Increase of 5%
|
Decrease of 5%
|
Decrease of 10%
|
Energy hedges
|
0.0
|
0.0
|
(0.5)
|
0.0
|
0.0
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
|
Increase of
10%
|
Increase of 5%
|
Decrease of 5%
|
Decrease of 10%
|
Energy hedges
|
2.0
|
1.0
|
0.8
|
(1.0)
|
(2.3)
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
|
Type of instrument
|
Increase of
10%
|
Increase of 5%
|
Decrease of 5%
|
Decrease of 10%
|
Marine shipping hedges
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
Increase (decrease)
in fair value
|
Fair value
|
Increase (decrease)
in fair value
|
|||
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
|
Type of instrument
|
Increase of
10%
|
Increase of 5%
|
Decrease of 5%
|
Decrease of 10%
|
1.4
|
0.7
|
(2.8)
|
(0.7)
|
(1.4)
|
• |
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of our assets;
|
• |
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements, in accordance with
generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorization of our management and directors; and
|
• |
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could
have a material effect on our financial statements.
|
2020
|
2019
|
|
US$ thousands
|
US$ thousands
|
Audit fees(1)
|
4,739
|
4,595
|
Audit-related fees(2)
|
146
|
150
|
Tax fees(3)
|
1,643
|
1,788
|
Total
|
6,528
|
6,533
|
• |
Majority Independent Board. Under Section 303A.01 of the NYSE Listed Company Manual (the “LCM”), a U.S.
domestic listed company, other than a controlled company, must have a majority of independent directors. Six of our ten directors are not considered independent directors under Israeli law whether due to their relationship with the
Company, our controlling shareholder or the length of their tenure on our Board of Directors.
|
• |
Nominating/Corporate Governance Committee. Under Section 303A.04 of the LCM, a U.S. domestic listed
company, other than a controlled company, must have a nominating/corporate governance committee composed entirely of independent directors. Our controlling shareholder, Israel Corporation, has significant control over the appointment of
our directors (other than external directors).
|
• |
Equity Compensation Plans. Under Section 303A.08 of the LCM, shareholders must be given the opportunity
to vote on all equity‑compensation plans and material revisions thereto, with certain limited exemptions as described therein. We follow the requirements of the Companies Law, under which approval of equity compensation plans and material
revisions thereto is within the authority of our HR & Compensation Committee and the Board of Directors. However, under the Companies Law, any compensation to directors, the chief executive officer or a controlling shareholder or
another person in which a controlling shareholder has a personal interest, including equity compensation plans, generally requires the approval of the compensation committee, the board of directors and the shareholders, in that order.
Under the Companies Law, the compensation of directors and officers is generally required to comply with a shareholder‑approved compensation policy, which is required, among other things, to include a monetary cap on the value of equity
compensation that may be granted to any director or officer.
|
• |
Shareholder Approval of Securities Issuances. Under Section 312.03 of the LCM, shareholder approval is a
prerequisite to (a) issuing ordinary shares, or securities convertible into or exercisable for ordinary shares, to a related party, a subsidiary, affiliate or other closely related person of a related party or any company or entity in
which a related party has a substantial interest, if the number of ordinary shares to be issued exceeds either 1% of the number of ordinary shares or 1% of the voting power outstanding before the issuance, and (b) issuing ordinary shares,
or securities convertible into or exercisable for ordinary shares, if the ordinary share has, or will have upon issuance, voting power equal to or in excess of 20% of the voting power outstanding before the issuance or the number of
ordinary shares to be issued is equal to or in excess of 20% of the number of ordinary shares before the issuance, in each case subject to certain exceptions. We seek shareholder approval for all corporate actions requiring such approval
under the requirements of the Companies Law, which are different from the requirements for seeking shareholder approval under Section 312.03 of the LCM. Under the Companies Law, shareholder approval is a prerequisite to any extraordinary
transaction with a controlling shareholder or in which a controlling shareholder has a personal interest. Under the Companies Law, shareholder approval is also a prerequisite to a private placement of securities if it will cause a person
to become a controlling shareholder or in case all of the following conditions are met:
|
• |
The securities issued amount to 20% or more of the company’s outstanding voting rights before the issuance;
|
• |
Some or all of the consideration is other than cash or listed securities or the transaction is not on market terms; and
|
• |
The transaction will increase the relative holdings of a 5% shareholder or will cause any person to become, as a result of the issuance, a 5%
shareholder.
|
|
ICL Group Ltd.
|
|||
|
By:
|
/s/ Kobi Altman
|
||
|
|
Name:
|
Kobi Altman
|
|
|
|
Title:
|
Chief Financial Officer
|
|
ICL Group Ltd.
|
|||
|
By:
|
/s/ Lilach Geva Harel
|
||
|
|
Name:
|
Lilach Geva Harel
|
|
|
|
Title:
|
EVP, Global General Counsel
|
2020
|
2019
|
||
Note
|
$ millions
|
$ millions
|
Current assets
|
|||
Cash and cash equivalents
|
214
|
95
|
|
Short-term investments and deposits
|
100
|
96
|
|
Trade receivables
|
883
|
778
|
|
Inventories
|
6
|
1,250
|
1,312
|
Other receivables
|
7
|
394
|
403
|
Total current assets
|
2,841
|
2,684
|
|
Non-current assets
|
|||
Investments at fair value through other comprehensive income
|
83
|
111
|
|
Deferred tax assets
|
15
|
127
|
109
|
Property, plant and equipment
|
10
|
5,550
|
5,331
|
Intangible assets
|
11
|
670
|
652
|
Other non-current assets
|
9,16
|
393
|
286
|
Total non-current assets
|
6,823
|
6,489
|
|
Total assets
|
9,664
|
9,173
|
|
Current liabilities
|
|||
Short-term debt
|
13
|
679
|
420
|
Trade payables
|
740
|
712
|
|
Provisions
|
17
|
54
|
42
|
Other payables
|
14
|
704
|
587
|
Total current liabilities
|
2,177
|
1,761
|
|
Non-current liabilities
|
|||
Long-term debt and debentures
|
13
|
2,053
|
2,181
|
Deferred tax liabilities
|
15
|
326
|
341
|
Long-term employee liabilities
|
16
|
655
|
575
|
Provisions
|
17
|
267
|
202
|
Other
|
98
|
52
|
|
Total non-current liabilities
|
3,399
|
3,351
|
|
Total liabilities
|
5,576
|
5,112
|
|
Equity
|
|||
Total shareholders’ equity
|
19
|
3,930
|
3,925
|
Non-controlling interests
|
158
|
136
|
|
Total equity
|
4,088
|
4,061
|
|
Total liabilities and equity
|
9,664
|
9,173
|
2020
|
2019
|
2018
|
||
Note
|
$ millions
|
$ millions
|
$ millions
|
Sales
|
20
|
5,043
|
5,271
|
5,556
|
Cost of sales
|
20
|
3,553
|
3,454
|
3,702
|
Gross profit
|
1,490
|
1,817
|
1,854
|
|
Selling, transport and marketing expenses
|
20
|
766
|
767
|
798
|
General and administrative expenses
|
20
|
232
|
254
|
257
|
Research and development expenses
|
20
|
54
|
50
|
55
|
Other expenses
|
20
|
256
|
30
|
84
|
Other income
|
20
|
(20)
|
(40)
|
(859)
|
Operating income
|
202
|
756
|
1,519
|
|
Finance expenses
|
219
|
220
|
214
|
|
Finance income
|
(61)
|
(91)
|
(56)
|
|
Finance expenses, net
|
20
|
158
|
129
|
158
|
Share in earnings of equity-accounted investees
|
5
|
1
|
3
|
|
Income before income taxes
|
49
|
628
|
1,364
|
|
Provision for income taxes
|
15
|
25
|
147
|
129
|
Net income
|
24
|
481
|
1,235
|
|
Net income (loss) attributable to the non-controlling interests
|
13
|
6
|
(5)
|
|
Net income attributable to the shareholders of the Company
|
11
|
475
|
1,240
|
|
Earnings per share attributable to the shareholders of the Company:
|
22
|
|||
Basic earnings per share (in dollars)
|
0.01
|
0.37
|
0.97
|
|
Diluted earnings per share (in dollars)
|
0.01
|
0.37
|
0.97
|
|
Weighted-average number of ordinary shares outstanding:
|
22
|
|||
Basic (in thousands)
|
1,280,026
|
1,278,950
|
1,277,209
|
|
Diluted (in thousands)
|
1,280,273
|
1,282,056
|
1,279,781
|
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Net income
|
24
|
481
|
1,235
|
Components of other comprehensive income that will be reclassified subsequently to net income
|
|||
Currency translation differences
|
118
|
(20)
|
(95)
|
Change in fair value of cash flow hedges transferred to the statement of income
|
(54)
|
(38)
|
-
|
Effective portion of the change in fair value of cash flow hedges
|
53
|
42
|
-
|
Tax relating to items that will be reclassified subsequently to net income
|
-
|
(1)
|
-
|
117
|
(17)
|
(95)
|
|
Components of other comprehensive income that will not be reclassified to net income
|
|||
Net changes of investments at fair value through other comprehensive income
|
18
|
10
|
(58)
|
Gains (losses) from defined benefit plans
|
(15)
|
(75)
|
56
|
Tax relating to items that will not be reclassified to net income
|
(6)
|
10
|
(3)
|
(3)
|
(55)
|
(5)
|
|
Total comprehensive income
|
138
|
409
|
1,135
|
Comprehensive income (loss) attributable to the non-controlling interests
|
23
|
4
|
(9)
|
Comprehensive income attributable to the shareholders of the Company
|
115
|
405
|
1,144
|
Attributable to the shareholders of the Company
|
Non- controlling interests
|
Total equity
|
|||||||
Share capital
|
Share premium
|
Cumulative translation adjustment
|
Capital reserves
|
Treasury shares,
at cost |
Retained earnings
|
Total shareholders’ equity
|
|||
$ millions
|
For the year ended December 31, 2020
|
|||||||||
Balance as at January 1, 2020
|
546
|
198
|
(442)
|
3
|
(260)
|
3,880
|
3,925
|
136
|
4,061
|
Share-based compensation
|
-
|
6
|
-
|
2
|
-
|
-
|
8
|
-
|
8
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(118)
|
(118)
|
(1)
|
(119)
|
Comprehensive income
|
-
|
-
|
108
|
17
|
-
|
(10)
|
115
|
23
|
138
|
Balance as at December 31, 2020
|
546
|
204
|
(334)
|
22
|
(260)
|
3,752
|
3,930
|
158
|
4,088
|
Attributable to the shareholders of the Company
|
Non- controlling interests
|
Total equity
|
|||||||
Share capital
|
Share premium
|
Cumulative translation adjustment
|
Capital reserves
|
Treasury shares,
at cost |
Retained earnings
|
Total shareholders’ equity
|
|||
$ millions
|
For the year ended December 31, 2019
|
|||||||||
Balance as at January 1, 2019
|
546
|
193
|
(424)
|
(17)
|
(260)
|
3,743
|
3,781
|
134
|
3,915
|
Share-based compensation
|
-
|
5
|
-
|
7
|
-
|
-
|
12
|
-
|
12
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(273)
|
(273)
|
(2)
|
(275)
|
Comprehensive income
|
-
|
-
|
(18)
|
13
|
-
|
410
|
405
|
4
|
409
|
Balance as at December 31, 2019
|
546
|
198
|
(442)
|
3
|
(260)
|
3,880
|
3,925
|
136
|
4,061
|
Attributable to the shareholders of the Company
|
Non- controlling interests
|
Total equity
|
|||||||
Share capital
|
Share premium
|
Cumulative translation adjustment
|
Capital reserves
|
Treasury shares,
at cost |
Retained earnings
|
Total shareholders’ equity
|
|||
$ millions
|
For the year ended December 31, 2018
|
|||||||||
Balance as at January 1, 2018
|
545
|
186
|
(333)
|
30
|
(260)
|
2,691
|
2,859
|
71
|
2,930
|
Share-based compensation
|
1
|
7
|
-
|
11
|
-
|
-
|
19
|
-
|
19
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(241)
|
(241)
|
(1)
|
(242)
|
Capitalization of subsidiary debt
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
73
|
73
|
Comprehensive income (loss)
|
-
|
-
|
(91)
|
(58)
|
-
|
1,293
|
1,144
|
(9)
|
1,135
|
Balance as at December 31, 2018
|
546
|
193
|
(424)
|
(17)
|
(260)
|
3,743
|
3,781
|
134
|
3,915
|
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Cash flows from operating activities
|
|||
Net income
|
24
|
481
|
1,235
|
Adjustments for:
|
|||
Depreciation and amortization
|
489
|
443
|
403
|
Impairment of fixed assets (Reversal of)
|
90
|
(10)
|
17
|
Exchange rate, interest and derivative, net
|
90
|
110
|
140
|
Loss (profit) from divestiture of businesses
|
4
|
-
|
(841)
|
Tax expenses
|
25
|
147
|
129
|
Change in provisions
|
113
|
(21)
|
(66)
|
Other
|
1
|
(1)
|
16
|
812
|
668
|
(202)
|
|
Change in inventories
|
54
|
(72)
|
(115)
|
Change in trade receivables
|
(89)
|
199
|
(101)
|
Change in trade payables
|
84
|
(58)
|
(34)
|
Change in other receivables
|
5
|
5
|
(3)
|
Change in other payables
|
54
|
4
|
(1)
|
Net change in operating assets and liabilities
|
108
|
78
|
(254)
|
Interests paid
|
(109)
|
(115)
|
(103)
|
Income taxes paid, net of refund
|
(31)
|
(120)
|
(56)
|
Net cash provided by operating activities
|
804
|
992
|
620
|
Cash flows from investing activities
|
|||
Proceeds (investments) in deposits, net
|
34
|
(2)
|
(3)
|
Business combinations
|
(27)
|
-
|
-
|
Purchases of property, plant and equipment and intangible assets
|
(626)
|
(576)
|
(572)
|
Proceeds from divestiture of businesses net of transaction expenses
|
26
|
-
|
902
|
Dividends from equity-accounted investees
|
7
|
3
|
2
|
Proceeds from sale of property, plant and equipment
|
3
|
50
|
2
|
Net cash provided by (used in) investing activities
|
(583)
|
(525)
|
331
|
Cash flows from financing activities
|
|||
Dividends paid to the Company's shareholders
|
(118)
|
(273)
|
(241)
|
Receipt of long-term debt
|
1,175
|
657
|
1,746
|
Repayments of long-term debt
|
(1,133)
|
(689)
|
(2,115)
|
Repayments of short-term debt, net
|
(52)
|
(183)
|
(283)
|
Receipt from transactions in derivatives designated as a cash flow hedge
|
24
|
-
|
-
|
Other
|
(1)
|
(2)
|
(1)
|
Net cash used in financing activities
|
(105)
|
(490)
|
(894)
|
Net change in cash and cash equivalents
|
116
|
(23)
|
57
|
Cash and cash equivalents as at the beginning of the year
|
95
|
121
|
83
|
Net effect of currency translation on cash and cash equivalents
|
3
|
(3)
|
(24)
|
Cash and cash equivalents included as part of assets held for sale
|
-
|
-
|
5
|
Cash and cash equivalents as at the end of the year
|
214
|
95
|
121
|
A. |
The reporting entity
|
B. |
Material events in the reporting period
|
B. |
Material events in the reporting period (cont'd)
|
C. |
Definitions
|
1. |
Subsidiary – a company over which the Company has control and the financial statements of which are fully consolidated with the Company's statements as part of the consolidated
financial statements.
|
2. |
Investee company – Subsidiaries, including a partnership or joint venture, which is accounted for using the equity method.
|
3. |
Related party – As in IAS 24 (2009), “Related Party Disclosures”.
|
A. |
Statement of compliance with International Financial Reporting Standards
|
B. |
Functional and presentation currency
|
C. |
Basis of measurement
|
D. |
Operating cycle
|
E. |
Use of estimates and judgment
|
E. |
Use of estimates and judgment (cont'd)
|
Estimate
|
Principal assumptions
|
Possible effects
|
Reference
|
Concessions, permits and business licenses
|
Forecast of obtaining renewed concessions, permits and business licenses which constitute the basis for the Company's
continued operations and the Company's expectations regarding the holding of the operating assets by it and / or by a subsidiary until the end of their useful lives
|
Impact on the value of the operation, depreciation periods and residual values of related assets.
|
See Note 18 -Concessions.
|
Recoverable amount of a cash generating unit, among other things, containing goodwill
|
Expected cash-flow forecasts including estimates of mineral reserves, discount rate, market risk and the forecasted
growth rate.
|
Change in impairment loss.
|
See Note 12 - impairment testing.
|
Uncertain tax positions
|
The extent of the certainty that ICL’s tax positions will be accepted and the risk of it incurring any additional tax and
interest expenses. This is based on an analysis of several matters, including interpretations of tax laws and the Company’s experience.
|
Recognition of additional income tax expenses.
|
See Note 15 - taxes on income.
|
Probability assessment of contingent and environmental liabilities including cost of waste removal/ restoration
|
Whether it is more likely than not that an outflow of economic resources will be required in respect of potential
liabilities under the environmental protection laws and legal claims pending against ICL and the estimation of their amounts. The waste removal/ restoration obligations depend on the reliability of the estimates of future removal
costs and interpretation of regulations.
|
Creation, adjustment or reversal of a provision for a claim and/or environmental liability including cost of waste
removal/restoration.
|
See Note 18 - contingent liabilities.
|
A. |
Basis for Consolidation
|
1. |
Business combinations
|
2. |
Subsidiaries
|
3. |
Non-controlling interests
|
A. |
Basis for Consolidation (cont'd)
|
4. |
Loss of control
|
5. |
Transactions eliminated in consolidation
|
6. |
Investment in associated companies and joint ventures
|
B. |
Foreign Currency
|
1. |
Transactions in foreign currency
|
2. |
Foreign operations
|
B. |
Foreign Currency (cont'd)
|
2. |
Foreign operations (cont'd)
|
C. |
Financial Instruments
|
1. |
Non-derivative financial assets (IFRS9)
|
C. |
Financial Instruments (cont'd)
|
1. |
Non-derivative financial assets (IFRS9) (cont'd)
|
2. |
Non-derivative financial liabilities
|
C. |
Financial Instruments (cont'd)
|
3. |
Derivative financial instruments
|
4. |
CPI-linked assets and liabilities not measured at fair value
|
5. |
Share capital
|
D. |
Property, plant and equipment
|
1. |
Recognition and measurement
|
2. |
Subsequent Costs (after initial recognition)
|
3. |
Depreciation
|
In Years
|
|
Buildings
|
15 - 30
|
Technical equipment and machinery (1)
|
5 - 25
|
Dikes and evaporating ponds (2)
|
20 - 40
|
Other
|
3 - 10
|
D. |
Property, plant and equipment (cont'd)
|
3. |
Depreciation (cont'd)
|
E. |
Intangible Assets
|
1. |
Goodwill
|
2. |
Costs of exploration and evaluation of resources
|
3. |
Research and development
|
4. |
Other intangible assets
|
5. |
Subsequent costs
|
6. |
Amortization
|
E. |
Intangible Assets (cont'd)
|
6. |
Amortization (cont'd)
|
In Years
|
|
Concessions and mining rights – over the balance of the rights granted to the companies
|
|
Trademarks
|
15 - 20
|
Technology / patents
|
7 - 20
|
Customer relationships
|
15 - 25
|
Exploration and evaluation assets
|
8 - 10
|
Computer applications
|
3 - 10
|
F. |
Inventories
|
F. |
Inventories (cont'd)
|
G. |
Capitalization of Borrowing Costs
|
H. |
Impairment
|
1. |
Non-derivative Financial assets
|
2. |
Non-financial assets
|
H. |
Impairment (cont'd)
|
2. |
Non-financial assets (cont'd)
|
I. |
Employee Benefits
|
1. |
Defined contribution plans
|
I. |
Employee Benefits (cont'd)
|
1. |
Defined contribution plans (cont'd)
|
2. |
Defined benefit plans
|
3. |
Other long-term employee benefits
|
4. |
Early Retirement Pay
|
I. |
Employee Benefits (cont'd)
|
5. |
Short‑term benefits
|
6. |
Share-based compensation
|
J. |
Provisions
|
(1) |
Warranty
|
J. |
Provisions (cont'd)
|
(2) |
Provision for environmental costs
|
(3) |
Restructuring
|
(4) |
Site restoration
|
(5) |
Legal claims
|
K. |
Revenue Recognition
|
K. |
Revenue Recognition (cont'd)
|
L. |
Government grants
|
M. |
Leases
|
M. |
Leases (cont'd)
|
N. |
Financing Income and Expenses
|
O. |
Taxes on Income
|
O. |
Taxes on Income (cont'd)
|
P. |
Earnings per share
|
Q. |
Transactions with controlling shareholder
|
R. |
Non-current assets and disposal groups held for sale
|
A. |
Investments in securities
|
B. |
Derivatives
|
C. |
Liabilities in respect of debentures
|
D. |
Property, plant and equipment of the subsidiaries Dead Sea Works, Dead Sea Bromine and Dead Sea Magnesium in Israel
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Innovative Ag Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the year ended December 31, 2020
|
|||||||
Sales to external parties
|
1,242
|
1,183
|
1,871
|
715
|
32
|
-
|
5,043
|
Inter-segment sales
|
13
|
163
|
77
|
16
|
3
|
(272)
|
-
|
Total sales
|
1,255
|
1,346
|
1,948
|
731
|
35
|
(272)
|
5,043
|
Segment profit (loss)
|
303
|
120
|
66
|
40
|
(5)
|
(15)
|
509
|
Other expenses not allocated to the segments
|
(307)
|
||||||
Operating income
|
202
|
||||||
Financing expenses, net
|
(158)
|
||||||
Share in earnings of equity-accounted investees
|
5
|
||||||
Income before income taxes
|
49
|
||||||
Depreciation, amortization and impairment
|
77
|
166
|
210
|
25
|
3
|
98
|
579
|
Capital expenditures as part of business combination
|
-
|
-
|
-
|
-
|
26
|
-
|
26
|
Capital expenditures
|
84
|
296
|
275
|
20
|
6
|
15
|
696
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Innovative Ag Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the year ended December 31, 2019
|
|||||||
Sales to external parties
|
1,307
|
1,330
|
1,901
|
699
|
34
|
-
|
5,271
|
Inter-segment sales
|
11
|
164
|
79
|
18
|
3
|
(275)
|
-
|
Total sales
|
1,318
|
1,494
|
1,980
|
717
|
37
|
(275)
|
5,271
|
Segment profit
|
338
|
289
|
100
|
21
|
19
|
(7)
|
760
|
Other expenses not allocated to the segments
|
(4)
|
||||||
Operating income
|
756
|
||||||
Financing expenses, net
|
(129)
|
||||||
Share in earnings of equity-accounted investees
|
1
|
||||||
Income before income taxes
|
628
|
||||||
Depreciation, amortization and impairment
|
67
|
149
|
177
|
21
|
22
|
(3)
|
433
|
Implementation of IFRS 16
|
8
|
95
|
113
|
9
|
105
|
9
|
339
|
Capital expenditures
|
66
|
383
|
213
|
21
|
4
|
6
|
693
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Innovative Ag Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the year ended December 31, 2018
|
|||||||
Sales to external parties
|
1,281
|
1,481
|
2,001
|
719
|
74
|
-
|
5,556
|
Inter-segment sales
|
15
|
142
|
98
|
22
|
5
|
(282)
|
-
|
Total sales
|
1,296
|
1,623
|
2,099
|
741
|
79
|
(282)
|
5,556
|
Segment profit
|
300
|
315
|
113
|
29
|
9
|
(13)
|
753
|
Other income not allocated to the segments
|
766
|
||||||
Operating income
|
1,519
|
||||||
Financing expenses, net
|
(158)
|
||||||
Share in earnings of equity-accounted investees
|
3
|
||||||
Income before income taxes
|
1,364
|
||||||
Depreciation, amortization and impairment
|
63
|
141
|
172
|
19
|
4
|
21
|
420
|
Capital expenditures
|
50
|
356
|
180
|
15
|
1
|
3
|
605
|
2020
|
2019
|
2018
|
||||
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
China
|
806
|
16
|
802
|
15
|
848
|
15
|
USA
|
793
|
16
|
840
|
16
|
903
|
16
|
Brazil
|
447
|
9
|
581
|
11
|
656
|
12
|
United Kingdom
|
336
|
7
|
347
|
7
|
382
|
7
|
Germany
|
327
|
6
|
334
|
6
|
365
|
7
|
Israel
|
260
|
5
|
241
|
5
|
223
|
4
|
Spain
|
243
|
5
|
249
|
5
|
262
|
5
|
France
|
238
|
5
|
257
|
5
|
267
|
5
|
India
|
194
|
4
|
178
|
3
|
211
|
4
|
Italy
|
114
|
2
|
116
|
2
|
125
|
2
|
All other
|
1,285
|
25
|
1,326
|
25
|
1,314
|
23
|
Total
|
5,043
|
100
|
5,271
|
100
|
5,556
|
100
|
C. |
Information based on geographical location (cont'd)
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Innovative Ag Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the year ended December 31, 2020
|
|||||||
Europe
|
458
|
411
|
665
|
334
|
30
|
(76)
|
1,822
|
Asia
|
405
|
433
|
480
|
127
|
1
|
(14)
|
1,432
|
North America
|
299
|
86
|
372
|
105
|
2
|
(5)
|
859
|
South America
|
40
|
230
|
227
|
21
|
-
|
(1)
|
517
|
Rest of the world
|
53
|
186
|
204
|
144
|
2
|
(176)
|
413
|
Total
|
1,255
|
1,346
|
1,948
|
731
|
35
|
(272)
|
5,043
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Innovative Ag Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the year ended December 31, 2019
|
|||||||
Europe
|
469
|
422
|
712
|
336
|
31
|
(85)
|
1,885
|
Asia
|
399
|
470
|
447
|
118
|
1
|
(12)
|
1,423
|
North America
|
353
|
95
|
370
|
95
|
-
|
(3)
|
910
|
South America
|
56
|
327
|
263
|
23
|
-
|
(1)
|
668
|
Rest of the world
|
41
|
180
|
188
|
145
|
5
|
(174)
|
385
|
Total
|
1,318
|
1,494
|
1,980
|
717
|
37
|
(275)
|
5,271
|
C. |
Information based on geographical location (cont'd)
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Innovative Ag Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the year ended December 31, 2018
|
|||||||
Europe
|
473
|
459
|
719
|
362
|
49
|
(92)
|
1,970
|
Asia
|
399
|
519
|
481
|
105
|
2
|
(18)
|
1,488
|
North America
|
347
|
107
|
405
|
103
|
24
|
(8)
|
978
|
South America
|
21
|
408
|
264
|
21
|
1
|
(3)
|
712
|
Rest of the world
|
56
|
130
|
230
|
150
|
3
|
(161)
|
408
|
Total
|
1,296
|
1,623
|
2,099
|
741
|
79
|
(282)
|
5,556
|
C. |
Information based on geographical location (cont'd)
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Israel
|
2,636
|
2,815
|
2,841
|
Europe
|
2,014
|
2,079
|
2,198
|
North America
|
757
|
816
|
831
|
Asia
|
643
|
615
|
617
|
South America
|
424
|
441
|
163
|
Others
|
48
|
47
|
48
|
6,522
|
6,813
|
6,698
|
|
Intercompany sales
|
(1,479)
|
(1,542)
|
(1,142)
|
Total
|
5,043
|
5,271
|
5,556
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Israel*
|
105
|
578
|
526
|
North America
|
47
|
61
|
74
|
Asia
|
64
|
59
|
52
|
Europe**
|
(50)
|
32
|
834
|
Others
|
39
|
22
|
29
|
Intercompany eliminations
|
(3)
|
4
|
4
|
Total
|
202
|
756
|
1,519
|
* |
Israel operating income for 2020 includes a loss of $274 million resulting from impairments and the initiation of efficiency initiatives and measures. For further information, see
Note 1B.
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Israel
|
3,952
|
3,905
|
Europe
|
1,575
|
1,380
|
Asia
|
490
|
434
|
North America
|
319
|
333
|
Other
|
63
|
76
|
Total
|
6,399
|
6,128
|
(*) |
Mainly consist of property, plant and equipment, intangible assets and non-current inventories.
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Finished products
|
807
|
800
|
Work in progress
|
263
|
326
|
Raw materials
|
207
|
176
|
Spare parts
|
125
|
127
|
Total inventories
|
1,402
|
1,429
|
Of which:
|
||
Non-current inventories. mainly raw materials (presented in non-current assets)
|
152
|
117
|
Current inventories
|
1,250
|
1,312
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Government institutions
|
72
|
98
|
Financial asset at amortized cost *
|
66
|
67
|
Current tax assets
|
65
|
87
|
Investments at fair value through other comprehensive income
|
53
|
40
|
Prepaid expenses
|
50
|
51
|
Other
|
88
|
60
|
394
|
403
|
A. |
Non-controlling interests in subsidiaries
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Current assets
|
149
|
151
|
Non-current assets
|
400
|
346
|
Current liabilities
|
(189)
|
(150)
|
Non-current liabilities
|
(76)
|
(103)
|
Equity
|
(284)
|
(244)
|
A. |
Non-controlling interests in subsidiaries (cont'd)
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Sales
|
359
|
349
|
387
|
Operating Income
|
29
|
23
|
-
|
Depreciation and amortization
|
37
|
41
|
34
|
Operating income before depreciation and amortization
|
66
|
64
|
34
|
Net Income (loss)
|
23
|
11
|
(13)
|
Total Comprehensive income
|
40
|
8
|
3
|
B. |
Business Acquisition and Divestiture
|
(1) |
As part of the Company's strategy to expand the specialty fertilizer business and focus on growing markets, in October 2020, the Company entered into an agreement to acquire 100% of
the shares of Agro Fertilaqua Participações S.A., one of Brazil's leading specialty plant nutrition companies, for a consideration of $122 million (before deduction of Fertilaqua's net debt of $40 million). In January 2021, the
acquisition was completed following the fulfilment of the customary closing conditions. As at the reporting date, the Company has not yet completed Fertilaqua's Purchase Price Allocation (PPA) process.
|
(2) |
As part of ICL's goal to further enhance its digital service and accelerate its global development roadmap, in February 2020, the Company acquired Growers Holdings, Inc., an
innovator in the field of process and data-driven farming, for a total consideration of $27 million. Growers has developed a platform that processes and analyzes data that is collected manually or through machine-generated farm data
into focused plans that enhance decision‑making capabilities for farmers, agronomists and other agro-professionals.
|
(3) |
As part of the Company's strategy to divest low synergy businesses and non-core business activities, in April 2020, the Company entered into an agreement with Solina Corporate SAS
to sell Hagesüd Interspice Gewürzwerke GmbH, including related real-estate assets. The sale's consideration is $35 million, of which $9 million represent a contingent consideration, which according to the Company's estimate, as at
December 31, 2020, is part of the sale's consideration. In May 2020, the transaction was completed with no material impact on the Company's financial results. The contingent consideration will be received subject to meeting a specific
sales target for a subsequent period of 12 months, ending on June 30, 2021.
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Non-current inventories
|
152
|
117
|
Derivative designated as a cash flow hedge
|
115
|
57
|
Surplus in employees' defined benefit plans (1)
|
91
|
78
|
Investments in equity-accounted investees
|
27
|
29
|
Other
|
8
|
5
|
393
|
286
|
(1) |
See Note 16.
|
Land and buildings
|
Technical equipment and machinery
|
Dikes and evaporating ponds
|
Plants under construction (1)
|
Other
|
Right of use
asset
|
Total
|
|
$ millions
|
Cost
|
|||||||
Balance as at January 1, 2020
|
804
|
6,865
|
1,392
|
765
|
945
|
423
|
11,194
|
Additions
|
63
|
467
|
21
|
(24)
|
68
|
80
|
675
|
Disposals
|
(7)
|
(34)
|
-
|
-
|
(7)
|
(21)
|
(69)
|
Exit from consolidation
|
(14)
|
(5)
|
-
|
-
|
(6)
|
(1)
|
(26)
|
Translation differences
|
34
|
126
|
28
|
37
|
3
|
15
|
243
|
Balance as at December 31, 2020
|
880
|
7,419
|
1,441
|
778
|
1,003
|
496
|
12,017
|
Accumulated depreciation
|
|||||||
Balance as at January 1, 2020
|
445
|
3,950
|
666
|
-
|
760
|
42
|
5,863
|
Depreciation
|
35
|
246
|
47
|
-
|
66
|
67
|
461
|
Disposals
|
(6)
|
(31)
|
-
|
-
|
(7)
|
(15)
|
(59)
|
Impairment
|
-
|
58
|
27
|
-
|
-
|
-
|
85
|
Exit from consolidation
|
(2)
|
(4)
|
-
|
-
|
(4)
|
-
|
(10)
|
Translation differences
|
19
|
81
|
23
|
-
|
2
|
2
|
127
|
Balance as at December 31, 2020
|
491
|
4,300
|
763
|
-
|
817
|
96
|
6,467
|
Depreciated balance as at December 31, 2020
|
389
|
3,119
|
678
|
778
|
186
|
400
|
5,550
|
Land and buildings
|
Technical equipment and machinery
|
Dikes and evaporating ponds
|
Plants under construction (1)
|
Other
|
Right of use asset
|
Total
|
|
$ millions
|
Cost
|
|||||||
Balance as at January 1, 2019
|
861
|
6,635
|
1,376
|
507
|
858
|
-
|
10,237
|
IFRS 16 initial implementation
|
-
|
-
|
-
|
-
|
-
|
300
|
300
|
Reclassification of finance lease (2)
|
-
|
-
|
-
|
-
|
-
|
96
|
96
|
Additions
|
17
|
283
|
21
|
261
|
93
|
39
|
714
|
Disposals
|
(69)
|
(47)
|
-
|
-
|
(5)
|
(11)
|
(132)
|
Translation differences
|
(5)
|
(6)
|
(5)
|
(3)
|
(1)
|
(1)
|
(21)
|
Balance as at December 31, 2019
|
804
|
6,865
|
1,392
|
765
|
945
|
423
|
11,194
|
Accumulated depreciation
|
|||||||
Balance as at January 1, 2019
|
468
|
3,782
|
627
|
-
|
697
|
-
|
5,574
|
Depreciation
|
36
|
218
|
43
|
-
|
67
|
51
|
415
|
Disposals
|
(45)
|
(44)
|
-
|
-
|
(4)
|
(9)
|
(102)
|
Reversal of impairment
|
(10)
|
-
|
-
|
-
|
-
|
-
|
(10)
|
Translation differences
|
(4)
|
(6)
|
(4)
|
-
|
-
|
-
|
(14)
|
Balance as at December 31, 2019
|
445
|
3,950
|
666
|
-
|
760
|
42
|
5,863
|
Depreciated balance as at December 31, 2019
|
359
|
2,915
|
726
|
765
|
185
|
381
|
5,331
|
A. |
Composition
|
Goodwill
|
Concessions and mining rights
|
Trademarks
|
Technology / patents
|
Customer relationships
|
Exploration and evaluation assets
|
Computer
application
|
Others
|
Total
|
|
$ millions
|
Cost
|
|||||||||
Balance as at January 1, 2020
|
323
|
209
|
86
|
75
|
176
|
44
|
99
|
34
|
1,046
|
Additions
|
-
|
-
|
-
|
-
|
-
|
2
|
18
|
1
|
21
|
Additions in respect of business combinations
|
18
|
-
|
-
|
-
|
1
|
-
|
-
|
7
|
26
|
Exit from consolidation
|
-
|
-
|
-
|
(5)
|
(10)
|
-
|
-
|
-
|
(15)
|
Translation differences
|
-
|
9
|
6
|
5
|
5
|
2
|
1
|
1
|
29
|
Balance as at December 31, 2020
|
341
|
218
|
92
|
75
|
172
|
48
|
118
|
43
|
1,107
|
Amortization and impairment losses
|
|||||||||
Balance as at January 1, 2020
|
21
|
70
|
28
|
43
|
114
|
26
|
68
|
24
|
394
|
Amortization
|
-
|
2
|
3
|
4
|
9
|
1
|
7
|
2
|
28
|
Impairment
|
-
|
-
|
-
|
-
|
-
|
5
|
-
|
-
|
5
|
Exit from consolidation
|
-
|
-
|
-
|
(2)
|
(3)
|
-
|
-
|
-
|
(5)
|
Translation differences
|
-
|
2
|
3
|
3
|
3
|
2
|
1
|
1
|
15
|
Balance as at December 31, 2020
|
21
|
74
|
34
|
48
|
123
|
34
|
76
|
27
|
437
|
Amortized Balance as at December 31 ,2020
|
320
|
144
|
58
|
27
|
49
|
14
|
42
|
16
|
670
|
A. |
Composition (cont’d)
|
Goodwill
|
Concessions and mining rights
|
Trademarks
|
Technology / patents
|
Customer relationships
|
Exploration and evaluation assets
|
Computer
application
|
Others
|
Total
|
|
$ millions
|
Cost
|
|||||||||
Balance as at January 1, 2019
|
331
|
210
|
88
|
75
|
178
|
39
|
87
|
33
|
1,041
|
Additions
|
-
|
-
|
-
|
-
|
-
|
5
|
12
|
1
|
18
|
Translation differences
|
(8)
|
(1)
|
(2)
|
-
|
(2)
|
-
|
-
|
-
|
(13)
|
Balance as at December 31, 2019
|
323
|
209
|
86
|
75
|
176
|
44
|
99
|
34
|
1,046
|
Amortization and impairment losses
|
|||||||||
Balance as at January 1, 2019
|
22
|
68
|
26
|
39
|
105
|
25
|
63
|
22
|
370
|
Amortization
|
-
|
2
|
3
|
5
|
10
|
1
|
5
|
2
|
28
|
Translation differences
|
(1)
|
-
|
(1)
|
(1)
|
(1)
|
-
|
-
|
-
|
(4)
|
Balance as at December 31, 2019
|
21
|
70
|
28
|
43
|
114
|
26
|
68
|
24
|
394
|
Amortized Balance as at December 31 ,2019
|
302
|
139
|
58
|
32
|
62
|
18
|
31
|
10
|
652
|
B. |
Total book value of intangible assets having defined useful lives and those having indefinite useful lives are as follows:
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Intangible assets having a defined useful life
|
317
|
318
|
Intangible assets having an indefinite useful life
|
353
|
334
|
670
|
652
|
A. |
Impairment testing for intangible assets with an indefinite useful life
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Goodwill
|
||
Phosphate Solutions
|
116
|
123
|
Industrial Products
|
94
|
91
|
Innovative Ag. Solutions
|
73
|
70
|
Potash
|
19
|
18
|
Other
|
18
|
-
|
320
|
302
|
|
Trademarks
|
33
|
32
|
353
|
334
|
A. |
Impairment testing for intangible assets with an indefinite useful life (cont’d)
|
Breakeven nominal after-tax discount rate
|
Industrial Products
|
16.4%
|
Potash
|
12.7%
|
Innovative Ag. Solutions
|
10.4%
|
Phosphate Solutions
|
10.6%
|
B. |
Impairment testing for fixed assets
|
1. |
In order to actively address global market volatility, the continuing trend of economic and business uncertainty and to mitigate the implications of the COVID-19 spread and its
impact on the Company's results, several efficiency initiatives and measures were initiated in 2020, which included, among other things, the discontinuation of the unprofitable production and sale of the phosphate rock activity in Rotem
Israel, leading to a write-off of fixed assets in the amount of $70 million.
|
2. |
In the second quarter of 2020, the business and economic uncertainty, the global market volatility, and the continuous trend of low phosphate prices indicated the potential for an
impairment in the value of Rotem Israel's non-financial assets. As a result, the Company conducted an examination of Rotem Israel's recoverable amount. The assumptions used to calculate the recoverable amount included a nominal
after-tax discount rate of 9% and a long-term growth rate of approximately 2%, reflecting the industries and markets in which the entity operates.
|
B. |
Impairment testing for fixed assets (cont'd)
|
3. |
In order to actively address global market volatility, the continuing trend of economic and business uncertainty and, specifically, the significant challenges in the work
environment at the Spanish site Sallent, the Company decided to accelerate the sites consolidation plan in ICL Iberia by closing the Sallent site (Vilafruns mine) as of June 30, 2020, which led to a write-off in the amount of $12
million attributed to fixed assets.
|
A. |
Composition
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Short-term debt
|
||
From financial institutions
|
296
|
358
|
Current maturities of:
|
||
Debentures
|
206
|
-
|
Long-term loans from financial institutions
|
90
|
13
|
Lease Liability
|
64
|
49
|
Long-term loans from others
|
23
|
-
|
383
|
62
|
|
Total Short-Term debt
|
679
|
420
|
Long- term debt and debentures
|
||
Long term lease liability
|
325
|
300
|
Loans from financial institutions
|
194
|
408
|
Other loans
|
24
|
29
|
543
|
737
|
|
Marketable debentures
|
1,618
|
1,231
|
Non-marketable debentures
|
275
|
275
|
1,893
|
1,506
|
|
2,436
|
2,243
|
|
Less – current maturities of:
|
||
Debentures
|
206
|
-
|
Long-term loans from financial institutions
|
90
|
13
|
Lease liability
|
64
|
49
|
Long-term loans from others
|
23
|
-
|
383
|
62
|
|
Total Long- term debt and debentures
|
2,053
|
2,181
|
B. |
Yearly movement in Credit from Banks and Others (*)
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Balance as at January 1
|
2,559
|
2,442
|
Changes from financing cash flows
|
||
Receipt of long-term debt
|
1,175
|
657
|
Repayment of long-term debt
|
(1,133)
|
(689)
|
Repayment of short-term debt, net
|
(52)
|
(183)
|
Interest paid
|
(109)
|
(115)
|
Receipt from transactions in derivatives designated as a cash flow hedge
|
24
|
-
|
Total net financing cash flows
|
(95)
|
(330)
|
Initial recognition of lease liability
|
80
|
353
|
Interest expenses
|
120
|
125
|
Effect of changes in foreign exchange rates
|
84
|
48
|
Change in fair value of cash flow hedges
|
(53)
|
(42)
|
Other changes
|
(35)
|
(37)
|
Balance as at December 31
|
2,660
|
2,559
|
C. |
Restrictions on the Group relating to the receipt of credit
|
Financial Covenants (1)
|
Financial Ratio Required under the Agreement
|
Financial Ratio December 31,
|
2020
|
Total shareholder's equity
|
Equity greater than $2,000 million
|
$3,930 million
|
Ratio of EBITDA to the net interest expenses
|
Equal to or greater than 3.5
|
9.3
|
Ratio of the net financial debt to EBITDA
|
Less than 3.5
|
2.3
|
Ratio of certain subsidiaries loans to the total assets of the consolidated company
|
Less than 10%
|
4%
|
(1) |
Examination of compliance with the above‑mentioned financial covenants is based on the Company's consolidated financial statements. As at December 31, 2020, the Company complies
with all of its financial covenants.
|
D. |
Sale of receivables under securitization transaction
|
E. |
Information on material loans and debentures outstanding as at December 31, 2020:
|
Instrument type
|
Loan date
|
Original principal (millions)
|
Currency
|
Carrying amount
($ millions)
|
Interest rate
|
Principal repayment date
|
Additional information
|
Debentures - Series F
|
May 2018, December 2020
|
693
|
U.S. Dollar
|
716
|
6.38%
|
May 2038
|
(1)
|
Debentures - Series E
|
April 2016
|
1,569
|
Israeli Shekel
|
487
|
2.45%
|
2021- 2024
(annual installment)
|
|
Debentures (private offering) – 3 series
|
January 2014
|
84
145
46
|
U.S. Dollar
|
84
145
46
|
4.55%
5.16%
5.31%
|
January 2021
January 2024
January 2026
|
|
Debentures - Series G
|
January/May 2020
|
766
|
Israeli Shekel
|
232
|
2.40%
|
December 2034
|
|
Debentures - Series D
|
December 2014
|
184
|
U.S. Dollar
|
183
|
4.50%
|
December 2024
|
(1)
|
Loan - European Bank
|
July 2020
|
50
|
GBP
|
68
|
0.79%
|
May 2021
|
|
Loan-Israeli institutions
|
November 2013
|
207
|
Israeli Shekel
|
64
|
4.74%
|
2015-2024
(annual installment)
|
Partially repaid
|
Loan - Asian Bank
|
May- June 2020
|
139
|
Chinese Yuan
|
21
|
4.95%-4.25%
|
February 2021-March 2023
|
|
February-September 2020
|
140
|
21
|
4.87%-4.40%
|
||||
Loan - others
|
April 2019
|
160
|
Chinese Yuan
|
24
|
4.40%-5.23%
|
April 2021-March 2022
|
E. |
Information on material loans and debentures: (cont’d)
|
(1) |
On January 2, 2020, the Company completed an ILS 380 million (about $118 million) placement of series G unsecured debentures (hereinafter - Series G) in Israel. On May 18, 2020, the
Company completed an expansion of Series G debentures in Israel, at the amount of ILS 386 million (about $120 million).
|
(2) |
The aggregate principal of Series G debentures amounts to ILS 766 million (about $238 million). The principal of Series G shall be payable in thirteen consecutive unequal annual
payments, to be paid, on December 30 of each of the years 2022 through 2034, with 64% of the principal to be paid on December 30, 2034. Series G carries an annual coupon of 2.4% paid in semiannual installments on June 30 and December 30
of each year, commencing June 30, 2020. The series G have been rated "ilAA" by Standard & Poor's Maalot rating agency. The interest rate on Series G will increase by 0.25% above the base interest rate for any rating level decrease
starting at a rating of "ilA and reaching a maximum cumulative interest rate increase of 1% upon reaching a rating of "ilBBB".
|
(3) |
On December 3, 2020, the Company completed a private expansion of Series F debentures, at the amount of $93 million par value, carrying an annual coupon of 6.375%, in consideration
of $1.29 per $1 par value, amounting to a total consideration of about $120 million. This expansion shall constitute a part of a debenture series previously issued by the Company. The terms of
the debentures are identical to the issuance terms of Series F debentures in the first placement thereof. The aggregate principal of Series F debentures following this expansion amounts to about $693 million. The principal of Series F
shall be payable in a single payment, to be paid on May 31, 2038. Series F debentures carry an annual coupon of 6.375%, to be paid in semiannual installments, on May 31 and November 30 of each year.
|
(4) |
In June 2020, the credit rating company Fitch Ratings revised the Company’s rating outlook from “positive” to “stable”, while reaffirming the Company’s international credit rating
BBB-. During June 2020, the credit rating agency Standard & Poor’s reaffirmed the Company’s international credit rating, BBB- with a stable rating outlook. Furthermore, Standard & Poor’s Maalot reaffirmed the Company’s local
credit rating in Israel, ilAA with a stable rating outlook.
|
(5) |
On July 2, 2020, the Company engaged in an agreement with the Bank of England, whereby the Company shall be entitled to receive a loan up to an amount of GBP 300 million (about
$401 million), carrying an annual interest of SONIA+0.6%. As at December 31, 2020, the Company has borrowed GBP 50 million (about $68 million) that will be repaid on May 18, 2021.
|
F. |
Credit facilities:
|
Issuer
|
Group of international banks (1)
|
European bank
|
Date of the credit facility
|
March 2015
|
December 2016
|
Date of credit facility termination
|
March 2025
|
May 2024
|
The amount of the credit facility
|
USD 1,100 million
|
USD 99 million
|
Credit facility has been utilized
|
-
|
USD 99 million
|
Interest rate
|
Up to 33% use of the credit: Libor/Euribor + 0.70%.
From 33% to 66% use of the credit: Libor/Euribor + 0.80%
66% or more use of the credit: Libor/Euribor + 0.95%
|
69 million dollar-Libor + 0.66%
30 million dollar-Libor + 0.80%
|
Loan currency type
|
USD and Euro loans
|
USD loans
|
Pledges and restrictions
|
Financial covenants - see Section D, a cross-default mechanism and a negative pledge.
|
Financial covenants - see Section D and a negative pledge.
|
Non-utilization fee
|
0.21%
|
0.00%
|
(1) |
Some of the banks agreed to extend the maturity of $900 million credit facility from March 2024 to March 2025. As at December 31, 2020, the Company has $1.1 billion of unutilized
long-term credit lines.
|
G. |
Pledges and Restrictions Placed in Respect of Liabilities
|
1) |
The Group has undertaken various obligations in respect of loans and credit lines from banks, including a negative pledge, whereby the Group committed, among other things, in favor
of the lenders, to limit guarantees and indemnities to third parties (other than guarantees in respect of subsidiaries) up to an agreed amount of $550 million. The Group has also committed to grant loans only to subsidiaries and to
associated companies, in which it holds at least 25% of the voting rights. ICL has further committed not to grant any credit, other than in the ordinary course of business, and not to register any charges on its existing and future
assets and income. For further information regarding the covenants in respect of these loans and credit lines, see item D above.
|
2) |
As at December 31, 2020, the total guarantees provided by the Company were in the amount of 92$ million.
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Employees (1)
|
322
|
294
|
Current tax liabilities
|
87
|
78
|
Accrued expenses
|
76
|
70
|
Governmental (mainly in respect of royalties)
|
75
|
67
|
Income received in advance
|
17
|
7
|
Derivative designated as an economic hedge
|
43
|
8
|
Others
|
84
|
63
|
704
|
587
|
(1) |
Including post-employment liabilities in the amount of $40 million and $29 million as at December 31, 2020 and 2019 respectively. See note 16.
|
A. |
Taxation of companies in Israel
|
1. |
Income tax rate
|
2. |
Tax benefits under the Israeli Law for the Encouragement of Capital Investments, 1959 (hereinafter – the Encouragement Law)
|
A. |
Taxation of companies in Israel (cont'd)
|
2. |
Tax benefits under the Israeli Law for the Encouragement of Capital Investments, 1959 (cont'd)
|
1) |
Preferred Enterprises located in Development Area A – 7.5%.
|
2) |
Preferred Enterprises located in the rest of the country – 16%.
|
A. |
Taxation of companies in Israel (cont'd)
|
3. |
The Law for the Encouragement of Industry (Taxation), 1969
|
a) |
Some of the Company’s Israeli subsidiaries are “Industrial Enterprise”, as defined in the above‑mentioned law. In respect of buildings, machinery and equipment owned and used by any
"Industrial Enterprise", the Company is entitled to claim accelerated depreciation as provided by the Income Tax Regulations – Adjustments for Inflation (Depreciation Rates), 1986 which allow accelerated depreciation to any "Industrial
Enterprise" as of the tax year in which each asset is first placed in service.
|
b) |
The Industrial Enterprises owned by some of the Company's Israeli subsidiaries have a common line of production or similar industrial branch activity and, therefore, they file,
together with the Company, a consolidated tax return in accordance with Section 23 of the Law for the Encouragement of Industry. Accordingly, each of the said companies is entitled to offset its tax losses against the taxable income of
the other companies.
|
4. |
The Law for Taxation of Profits from Natural Resources
|
A. |
Taxation of companies in Israel (cont'd)
|
4. |
The Law for Taxation of Profits from Natural Resources (cont'd)
|
1) |
Actual price in the sale transaction.
|
2) |
A price which will keep an operating profit with the bromine compounds manufacturer of 12% out of the revenue it generates from bromine compounds sales.
|
1) |
Actual price in the sale transaction.
|
2) |
A price which will keep an operating profit with the downstream products manufacturer of 12% out of the revenue it generates from downstream phosphate made of products sales.
|
3) |
The production and operating costs attributable to a unit of phosphate.
|
4. |
The Law for Taxation of Profits from Natural Resources (cont'd)
|
B. |
Taxation of non-Israeli subsidiaries
|
Country
|
Tax rate
|
Note
|
Brazil
|
34%
|
|
Germany
|
29%
|
|
United States
|
26%
|
(1)
|
Netherlands
|
25%
|
|
Spain
|
25%
|
|
China
|
25%
|
|
United Kingdom
|
19%
|
(1) |
The tax rate is an estimated average and includes federal and states tax. Different rate may apply in each specific year, as a result of different allocation of income between the
different states.
|
C. |
Carried forward tax losses
|
D. |
Tax assessments
|
1) |
The Company and the main operational companies in Israel (DSW, Rotem, Bromine, DSM, BCL and F&C), along with most of the other companies in Israel, have received final tax
assessments up to and including 2011. The main subsidiaries outside of Israel have final tax assessments up to and including 2014.
|
2) |
In December 2018, the Israeli Tax Authorities (hereinafter - the ITA) rejected the Company's
objection relating an assessment issued to the Company and to certain Israeli subsidiaries, and demanded an additional tax payment, for the years 2012‑2014,
in the amount of NIS 303 million ($94 million). The Company filed an appeal to the Jerusalem District Court disputing the assessment.
|
3) |
The Company's subsidiary in Belgium (hereinafter - ICL Belgium or the Company) recognized a notion deduction on its capital, based on its interpretation of the Belgian tax law. The
tax authorities disputed the eligibility of this position and issued tax assessments to ICL Belgium amounting to $30 million for the years 2010-2015. With regards to the year 2010, the Company's position was validated, both by the Court
of Appeals in Antwerp and later, in December 2020, by the Court of Appeals in Gent, following the Supreme Court's resolution to accept the tax authorities appeal and to demand a re-hearing. With respect to the years 2011-2014, in July
2020, the tax authorities appealed to the Supreme Court about the supporting ruling of Court of Appeals in Antwerp. Relating to the assessment for year 2015, the Company appealed to a low court, which is a prior step before the Court of
Appeals. The Company believes it is more likely than not that its tax position will be accepted.
|
E. |
Uncertain Tax Position
|
E. |
Uncertain Tax Position (cont'd)
|
F. |
Deferred income taxes
|
In respect of financial position
|
In respect
of carry forward tax losses
|
Total
|
||||
Depreciable property,
plant and equipment and intangible assets
|
Inventories
|
Provisions for employee benefits
|
Other
|
|||
$ millions
|
Balance as at January 1, 2019
|
(412)
|
26
|
74
|
20
|
117
|
(175)
|
Changes in 2019:
|
||||||
Amounts recorded in the statement of income
|
(9)
|
6
|
-
|
(1)
|
(63)
|
(67)
|
Amounts recorded to a capital reserve
|
-
|
-
|
10
|
-
|
-
|
10
|
Balance as at December 31, 2019
|
(421)
|
32
|
84
|
19
|
54
|
(232)
|
Balance as at January 1, 2020
|
||||||
Amounts recorded in the statement of income
|
(17)
|
6
|
13
|
(28)
|
60
|
34
|
Amounts recorded to a capital reserve
|
-
|
-
|
(6)
|
-
|
(3)
|
(9)
|
Translation differences
|
(1)
|
-
|
3
|
2
|
4
|
8
|
Balance as at December 31, 2020
|
(439)
|
38
|
94
|
(7)
|
115
|
(199)
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Euro
|
73
|
44
|
British Pound
|
17
|
16
|
Israeli Shekels
|
(280)
|
(285)
|
U.S Dollar
|
(6)
|
(1)
|
Other
|
(3)
|
(6)
|
(199)
|
(232)
|
G. |
Taxes on income included in the income statements
|
1. |
Composition of income tax expenses (income(
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Current taxes
|
70
|
91
|
53
|
Deferred taxes
|
(43)
|
61
|
76
|
Taxes in respect of prior years
|
(2)
|
(5)
|
-
|
25
|
147
|
129
|
2. |
Theoretical tax
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Income before income taxes, as reported in the statements of income
|
49
|
628
|
1,364
|
Statutory tax rate (in Israel)
|
23%
|
23%
|
23%
|
Theoretical tax expense
|
11
|
144
|
314
|
Add (less) – the tax effect of:
|
|||
Tax benefits deriving from the Law for Encouragement of Capital Investments net of natural Resources Tax
|
(6)
|
(8)
|
(20)
|
Differences deriving from additional deduction and different tax rates applicable to foreign subsidiaries
|
(4)
|
(15)
|
(186)
|
Tax on dividend
|
2
|
2
|
-
|
Deductible temporary differences (including carryforward losses) for which deferred taxes assets were not recorded and non–deductible expenses
|
14
|
17
|
24
|
Taxes in respect of prior years
|
(2)
|
(5)
|
-
|
Differences in measurement basis (mainly ILS/USD)
|
10
|
15
|
(11)
|
Other differences
|
-
|
(3)
|
8
|
Taxes on income included in the income statements
|
25
|
147
|
129
|
H. |
Taxes on income relating to items recorded in equity
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Tax recorded in other comprehensive income
|
|||
Actuarial gains from defined benefit plan
|
(6)
|
10
|
(3)
|
Change in investments at fair value through other comprehensive income
|
-
|
(1)
|
-
|
Taxes in respect of exchange rate differences on equity loan to a subsidiary included in translation adjustment
|
(3)
|
1
|
2
|
Total
|
(9)
|
10
|
(1)
|
A. |
Composition
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Fair value of plan assets
|
629
|
583
|
Termination benefits
|
(158)
|
(105)
|
Defined benefit obligation
|
(1,075)
|
(1,004)
|
(604)
|
(526)
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Equity instruments
|
||
With quoted market price
|
224
|
237
|
Without quoted market price
|
40
|
10
|
264
|
247
|
|
Debt instruments
|
||
With quoted market price
|
334
|
307
|
Without quoted market price
|
3
|
1
|
337
|
308
|
|
Deposits with insurance companies
|
28
|
28
|
629
|
583
|
B. |
Severance Pay
|
1. |
Israeli companies
|
2. |
Certain subsidiaries outside Israel
|
C. |
Pension and Early Retirement
|
1) |
Some of the Group’s employees in and outside of Israel have defined benefit pension plans for their retirement, which are controlled by the Company. Generally, according to the
terms of the plans, as stated, the employees are entitled to receive pension payments based on, among other things, their number of years of service (in certain cases up to 70% of their last base salary) or computed, in certain cases,
based on a fixed salary. Some employees of a subsidiary in Israel are entitled to early retirement if they meet certain conditions, including age and seniority at the time of retirement.
|
2) |
Some Group companies have entered into plans with funds – and with a pension fund for some of the employees – under which such companies make current deposits with that fund which
releases them from their liability for making a pension payment under the labor agreements to all of their employees upon reaching a retirement age. The amounts funded are not reflected in the statements of financial position since they
are not under the control and management of the Group companies.
|
3) |
In 2020, as part of the Company's efforts to address the financial impact of the significant uncertainty in the business and economic environment and the global market volatility,
which resulted, among others, from the COVID 19 outbreak, a few initiatives and streamlining measures were initiated, including an approval of a headcount reduction plan of over 200 employees, primarily through an early retirement
plan, for Rotem Israel, Bromine Compounds, and Dead Sea Magnesium. As a result, the Company updated its provision for employee benefits in the amount of $78 million.
|
D. |
Post-employment retirement benefits
|
E. |
Movement in net defined benefit obligation and in its components:
|
Fair value of plan assets
|
Defined benefit obligation
|
Defined benefit obligation, net
|
||||
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Balance as at January 1
|
583
|
518
|
(1,004)
|
(860)
|
(421)
|
(342)
|
Income (costs) included in profit or loss:
|
||||||
Current service costs
|
-
|
-
|
(22)
|
(21)
|
(22)
|
(21)
|
Interest income (expenses)
|
5
|
15
|
(14)
|
(27)
|
(9)
|
(12)
|
Past service cost
|
-
|
-
|
11
|
5
|
11
|
5
|
Effect of movements in exchange rates, net
|
16
|
17
|
(34)
|
(31)
|
(18)
|
(14)
|
Included in other comprehensive income:
|
||||||
Actuarial losses deriving from changes in financial assumptions
|
-
|
-
|
(24)
|
(121)
|
(24)
|
(121)
|
Other actuarial gains
|
9
|
46
|
-
|
-
|
9
|
46
|
Change with respect to translation differences, net
|
18
|
9
|
(32)
|
(4)
|
(14)
|
5
|
Other movements:
|
||||||
Benefits received (paid)
|
(6)
|
(32)
|
44
|
55
|
38
|
23
|
Employer contribution
|
4
|
10
|
-
|
-
|
4
|
10
|
Balance as at December 31
|
629
|
583
|
(1,075)
|
(1,004)
|
(446)
|
(421)
|
F. |
Actuarial assumptions
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
%
|
%
|
%
|
Discount rate as at December 31
|
1.7
|
2.1
|
3.0
|
Future salary increases
|
3.4
|
3.2
|
3.3
|
Future pension increase
|
2.0
|
2.1
|
2.2
|
G. |
Sensitivity analysis
|
December 2020
|
||||
Decrease 10%
|
Decrease
5%
|
Increase
5%
|
Increase
10%
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Significant actuarial assumptions
|
||||
Salary increase
|
(19)
|
(10)
|
10
|
19
|
Discount rate
|
22
|
11
|
(11)
|
(22)
|
Mortality table
|
26
|
13
|
(13)
|
(26)
|
H. |
The Effect of the plans on the Group's future cash flows
|
I. |
Long-term incentive plan
|
Site restoration and equipment dismantling (1)
|
Legal claims (2)
|
Other
(3)
|
Total
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Balance as at January 1, 2020
|
202
|
10
|
32
|
244
|
Provisions recorded during the period
|
79
|
-
|
5
|
84
|
Provisions reversed during the period
|
(1)
|
-
|
(3)
|
(4)
|
Payments during the period
|
(12)
|
(1)
|
(2)
|
(15)
|
Translation differences
|
11
|
1
|
-
|
12
|
Balance as at December 31, 2020
|
279
|
10
|
32
|
321
|
(1) |
Main plans for mine restoration and waste removal:
|
a. |
Spain – In June 2018, a new restoration plan for Suria and Sallent sites, which included a plan for handling the salt piles and dismantling of facilities, was approved. The
restoration plan for the Suria site is scheduled to run up to 2094, whereas for the Sallent site up to 2070.
|
b. |
Rotem Israel – as at December 31, 2020, according to the Company's estimation, the provision for the restoration of the mining sites, considering Rotem Israel's operation, amounted
to $78 million. The provision is measured based on the present value of the cash flows, which are based on assessing the future expense required for the restoration of the mining sites. The actual costs that may be required may differ,
even substantially, from the current provision, as a result of the inherent complexity of such estimation, the Company's future decisions regarding the facilities, and regulatory requirements.
|
c. |
Bromine Israel (Neot Hovav) – pursuant to the Ministry of Environmental Protection, the Company is required to treat both solid waste of past periods which is stored in a designated
defined area on the site's premises, and currently-produced waste created during the ongoing production processes in the plant. Waste treatment is partly conducted through a hydro-bromine acid recovering facility (BRU), operated by the
Company. Part of the waste is sent for external designated treatment. As at December 31, 2020, the provision for prior periods waste treatment amounted to about $50 million. In the Company's estimation, based on the information
currently available to it, the provision included in its financial statements covers the estimated cost for treating prior periods waste.
|
(2) |
In 2016, a court decision was received, which determined that ICL Iberia bears responsibility for contamination of the water in certain wells in the Suria and Sallent sites (due to
an over concentration of salt). In 2018, claims were received from several owners of the land surrounding the wells, whereby ICL Iberia is required to compensate them for their damages in the aggregate amount of $22 million. Having
examined the claimants' allegations, the Company estimated that it is more likely than not that it would be required to compensate the owners in the amount of up to $4 million. The provision in the Company's books reflects this
estimate.
|
(3) |
In 2017, the Israeli Water Law was amended, according to which saline water of the kind produced by Dead Sea plants in the Company's water drilling is charged with water fees.
Accordingly, the Company received a charge from the Water Authority in the amount of $31 million for water drawn from all its drillings, including in the concession area between the years 2018-2020. The Company submitted its appeal to
the Water Authority, objecting to the charges relating to water drilling within the concession area, which constitutes about 65% of the total
charge. It is the Company's view, that such charges should not apply to water drilling within the Dead Sea concession area, for various reasons, most notably the provisions of the Concession Law. The Company believes it is more likely
than not that the charges will not apply to the water drilling within the concession area. The Company has a sufficient provision in its books, in immaterial amounts, for the drilling of water outside the concession area.
|
A. |
Commitments
|
(1) |
Several of the Group’s subsidiaries have entered into agreements with suppliers for the purchase of raw materials and energy in the ordinary course of business, for various periods
ending on December 31, 2036. As of December 31, 2020, the total amount of the commitments under the said purchase periods of the agreements is about $2.48 billion. This item takes into consideration part of the agreements described
below.
|
(2) |
Several of the Group’s subsidiaries have entered into agreements with suppliers for the acquisition of property, plant and equipment. As at December 31, 2020, the subsidiaries have
capital expenditures commitments of about $400 million. This item takes into consideration part of the agreements described below.
|
(3) |
In 2017, Dead Sea Works (hereinafter - DSW) signed an agreement, the cost of which for ICL is $280 million, for the execution of the first stage of the Salt Harvesting Project, with
Holland Shallow Seas Dredging Ltd., which includes, among other things, the construction of a special dredger that is designed to execute the salt harvesting. The dredger commenced its operation during the fourth quarter of 2020. For
further information - see item C(2).
|
(4) |
In 2017, DSW signed agreements with several execution and infrastructure companies, for construction of a new pumping station (hereinafter - the P-9 Pumping Station), for a total
amount of $180 million (out of the total project cost of about $220 million). In early 2020, due to the COVID-19 pandemic, the pumps supplier issued a "Force Majeure" notice resulting in a delay of the pumping station’s completion,
which was expected in the first half of 2021. The P‑9 pumping station is expected to commence operation during the second half of 2021. For further information – see item C(2).
|
(5) |
In 2018, the Company entered into two supply agreements with "Tamar" and “Leviathan” reservoir (hereinafter – the Agreements), to secure its gas supply needs until the end of 2025
or until the entry of the “Karish” and “Tanin” reservoirs into service, whichever occurs first. The gas price in the Agreements is in accordance with the gas price formulas stipulated under the government’s gas outline.
|
A. |
Commitments (cont'd)
|
(5) |
(Cont'd)
|
(6) |
In June 2020, the Company entered into a long-term lease agreement with a third party, according to which ICL will lease an office building in Be'er Sheva Israel for a period of 15
years, with a 10-year extension option, at an annual rent of NIS 11 million ($3 million). The lease period is expected to commence in 2024 (at the end of the construction period).
|
(7) |
The Articles of Association of the Company and its Israeli subsidiaries include provisions that permit exemption, indemnification and insurance of the liability of officers, all in
accordance with the provisions of the Companies Law.
|
A. |
Commitments (cont'd)
|
(7) |
(Cont'd)
|
B. |
Concessions
|
(1) |
Dead Sea Works Ltd. (hereinafter – DSW)
|
B. |
Concessions (cont'd)
|
(1) |
Dead Sea Works Ltd. (hereinafter – DSW) (cont'd)
|
B. |
Concessions (cont'd)
|
(1) |
Dead Sea Works Ltd. (hereinafter – DSW) (cont'd)
|
(2) |
Rotem Amfert Israel (hereinafter – “Rotem Israel”)
|
a) |
Rotem Field (including the Hatrurim Field) – valid up to the end of 2021.
|
b) |
Zafir Field (Oron‑Zin) – valid up to the end of 2021.
|
B. |
Concessions (cont'd)
|
(2) |
Rotem Amfert Israel (hereinafter – “Rotem Israel”) (cont'd)
|
B. |
Concessions (cont'd)
|
(2) |
Rotem Amfert Israel (hereinafter – “Rotem Israel”) (cont'd)
|
• |
Emission permit under the Israeli Clean Air Act (hereinafter - the Law): In 2018, the Company conducted two risk assessments by external
experts regarding the possibility to execute all the clean air tasks required by the emission permit as per their approved timeline. The risk assessments focused on the technical and safety considerations arising from implementation
of a large number of projects, in parallel, in an industrial site. The assessments indicated that there is no operational feasibility to implement the full requirements of the permit within the defined timeline, and accordingly the
Company is unable to meet the timeline set in the current permit.
|
B. |
Concessions (cont'd)
|
(2) |
Rotem Amfert Israel (hereinafter – “Rotem Israel”) (cont'd)
|
• |
Mining concessions - The Company is working with the relevant authorities to extend the above-mentioned concessions, which are in effect until the end of 2021. For further
information on recent developments regarding the extension of the concessions for an additional period of three years, see above.
|
• |
Oron's lease agreement - The Company has been working to extend the lease agreement for Oron's plant area since 2017, by exercising the extension option provided in the agreement.
|
• |
Dry and wet phosphogypsum storage - in October 2020, the construction and use permit for pond 5 were extended until December 31, 2021. The Company is working with the relevant
authorities to obtain all the required permits, for the continued operation of the gypsum ponds beyond 2021 and for the continued piling of gypsum, in accordance with the requirements set by law and/or instructions of the Planning and
Building Committee.
|
• |
Extension of oil shale extraction permit– The ERD (energy resource development) facility in Rotem Israel, which is used for extracting energy from oil shales (hereinafter – the
facility), is essential for the continued production activity of Rotem Israel. In February 2020, the Ministry of Energy notified of its intention not to renew the oil shale extraction permit due to the environmental effects of the
facility, whose operation is based on outdated technology.
|
B. |
Concessions (cont'd)
|
• |
Finding economically feasible alternatives to the continued mining of phosphate rock in Israel – According to the Company's assessment of economic phosphate reserves in the existing
mining areas, the estimated useful life of Rotem's phosphate rock reserves, which are essential for some production lines, is limited to only a few years. As described above, the Company is working to obtain permits and approvals which
will provide an economic alternative for future mining of phosphate rock in Israel.
|
(3) |
Spain
|
B. |
Concessions (cont'd)
|
(4) |
United Kingdom
|
A. |
The mining rights of a subsidiary in the United Kingdom (hereinafter – ICL Boulby), are based on approximately 114 mining leases and
licenses for extracting various minerals, in addition to numerous easements and rights of way from private owners of land under which ICL Boulby operates, and mining rights under the North Sea granted by the British Crown (Crown
Estates). The lease rights with the Crown Estates, include provisions to explore and exploit all targeted and known Polysulphate mineral resources of interest to ICL Boulby. The said mineral leases cover a total area of about 720
square kilometers (onshore leases totaling around 90 square kilometers and the offshore leases from the Crown Estates covering around 630 square kilometers). All the lease periods, licenses, easements and rights of way are effective,
some up to 2022 and others up to 2038.
|
B. |
A UK subsidiary which is a part of the Innovative Ag Solutions segment (hereinafter – Everris Limited), has peat mines in the UK (Creca, Nutberry and Douglas Water). Peat is used as
a component to produce professional growing media. All sites are owned by Everris Limited. The current extraction permits are granted by the local authorities and are renewed after examining the renewal applications. The extraction
permits are granted up to the end of 2024 for Nutberry and Douglas Water and 2037 for Creca.
|
(5) |
China
|
B. |
Concessions (cont'd)
|
(5) |
China (cont'd)
|
C. |
Contingent liabilities
|
(1) |
Ecology
|
A. |
In September 2020, an application for a class action was filed to the district court in Beer Sheva, Israel, against the Company, the
Company's subsidiary Rotem Israel and certain Company's present and past office holders, by a number of local residents in the Arava region in the south of Israel (hereinafter – the Applicants). The Applicants claim that discharge,
leakage and seepage of sewage from ICL's Zin site, allegedly caused various environmental hazards to the Zin stream, which resulted in damage to various groups in the population of Israel, including: the Israeli public whose property
is Zin stream; those who avoided visiting Zin stream due to the environmental hazards; visitors of Zin stream who were exposed to the aforementioned hazards and the residents of the area near Zin stream who were affected by the
hazards. Accordingly, the Applicants request several remedies, including restitution and compensation for the damage that they claim was caused to the various groups in a minimum amount of NIS 3 billion (approximately $933 million),
the majority of which relates to compensation for claimed consequential damages. In December 2020, the Company filed a request for dismissal the application for approval with respect to the proprietary causes cited, which constitute
the main portion of the claimed damage. In January 2021, the court decided to discuss and rule on the Company's motion for dismissal as part of the resolution request for approval. Considering the preliminary stage of the proceeding
and lack of precedents of such cases in Israel, there is a difficulty in estimating its outcome. No provision has been recorded in the Company's books.
|
B. |
In July 2019, an application for approval of a claim as a class action was submitted to the Jerusalem District Court by an Israeli environmental association
(hereafter - the Applicant) against 30 defendants, including Fertilizers and Chemicals Ltd., a subsidiary of the Company (hereinafter – the Respondents). The application includes claims relating to air pollution in Haifa Bay (located in
northern Israel) and to alleged illness therefrom to the population of the said area.
|
C. |
Contingent liabilities (cont'd)
|
(1) |
Ecology (cont'd)
|
C. |
(cont'd)
|
D. |
In March 2018, an application for certification of a claim as a class action was filed with the District Court in Be’er Sheva by two
groups: the first class constituting the entire public in the State of Israel and the second-class constituting visitors of Bokek stream and the Dead Sea (hereinafter – the Applicants), against the subsidiaries, Rotem Israel and
Periclase Dead Sea Ltd. (hereinafter – the Respondents).
|
E. |
In connection with the 2017 event of the partial collapse of a dyke in Pond 3, which is used for accumulation of phosphogypsum fluid that
is created as part of the production processes in Rotem Israel plants in Israel. To the best of the Company's knowledge, as at the reporting date, the criminal investigation of the event is still underway. The Company is committed to
environmental protection, and for years has worked closely with the Israeli environmental protection authorities to maintain the Negev’s nature in the area of its facilities. Several applications for certification of claims as class
actions were filed against the Company contending, among other things, that the Company should bear the restoration costs in the long‑term (see item E below).
|
C. |
Contingent liabilities (cont'd)
|
(1) |
Ecology (cont'd)
|
F. |
In July and August 2017, three applications for certification of claims as class actions were filed against the Company, as a result of a partial collapse of the dyke in the
evaporation pond of Rotem Amfert Israel, which caused contamination of the Ashalim Stream and its surrounding area. The claimants contend that the Company breached various provisions of environmental laws, including, the provisions of
the Law for Prevention of Environmental Hazards, the Water Law, provisions of the Torts Ordinance, a breach of statutory duty and negligence. In the framework of the first application, the Court was requested to instruct the Company to
rectify the harm caused as a result of its omissions, in order to prevent recurrence of the damage caused as well as to grant a monetary remedy for non‑pecuniary damages. The monetary remedy was not defined, however, according to the
claimants, the amount of the personal claim is NIS 1,000 ($311) for each resident of the State of Israel, which totals approximately 8.68 million persons.
|
C. |
Contingent liabilities (cont'd)
|
(1) |
Ecology (cont'd)
|
E. |
(Cont'd)
|
F. |
In 2015, a request was filed for certification of a claim as a class action, in the District Court in Tel‑Aviv–Jaffa, against eleven defendants, including a subsidiary, Fertilizers
and Chemical Ltd., in respect of claims relating to air pollution in Haifa Bay and for the harm allegedly caused from it to the residents of the Haifa Bay area. The amount of the claim is about NIS 13.4 billion (about $4.2 billion). In
the Company’s estimation, based on the factual material provided to it and the relevant court decision, it is more likely than not that the plaintiffs’ contentions will be rejected.
|
(2) |
Increase in the level of the evaporation Pond in Sodom (Pond 5)
|
C. |
Contingent liabilities (cont'd)
|
(2) |
Increase in the level of Pond 5 (hereinafter – the Pond) (cont'd)
|
(3) |
In connection with a principle agreement with a construction contractor, Abengoa, to establish a
cogeneration station (EPC) in Sodom Israel, in light of the continued violations by Abengoa and the financial disputes between the parties, the Company notified it of the cancellation of the agreement and the initiation of an
arbitration proceeding in accordance with the provisions of the agreement.
|
C. |
Contingent liabilities (cont'd)
|
(3) |
(cont'd)
|
A. |
The subsidiary in Spain (hereinafter – ICL Iberia) had two potash production centers – Suria and Sallent. As part of an efficiency plan, the Company is in the process of
consolidating the activities of ICL Iberia into one site by means of expanding the Suria production site and discontinuing the mining activities in the Sallent site. For further information regarding the Company's decision to accelerate
the sites' consolidation in ICL Iberia by closing the Sallent site from June 30, 2020, please see Note 12. The mining activities in Spain require, among other things, an environmental mining license and an urban license.
|
B. |
As part of the arbitration proceeding conducted between a Spanish subsidiary and Akzo Nobel Industrial Chemicals B.V. (currently -
Nobian), concerning the termination of the partnership agreement between them, in May 2019, Nobian submitted a statement of claim to the Arbitral Tribunal, whereby it seeks to determine that the agreement termination by the Company
constitutes an unlawfully breach of contract and therefore it is entitled to enforce the agreement and to be compensated in an immaterial amount. Alternatively, in case it is determined that the agreement is not enforceable, Nobian
outlines several different compensation alternatives in the amounts of up to $152 million. The Company believes that the agreement was lawfully terminated and that it is more likely than not that Nobian claims will be rejected. To
the best of the Company's knowledge, the arbitration award is expected during the first quarter of 2021.
|
C. |
Contingent liabilities (cont'd)
|
(5) |
In connection with the Harmonization Project (one global ERP system), which was discontinued in 2016 by the Company's Board of Directors decision, in December 2018 the Company filed
a lawsuit in the Tel Aviv District Court, against IBM Israel, the leading project provider (hereinafter – IBM), in the amount of $300 million (about a billion NIS), for compensation of the damages incurred to the Company due to IBM’s
failure to meet its undertakings within the Project, which led to the failure of the Project.
|
(6) |
In December 2018, an application for certification of a class action was filed with the Tel Aviv District Court against the Company, Israel Corporation, and office holders,
including directors who held office during the said dates which are stated in the application, with respect to the manner in which the IT (the Harmonization) project was managed and terminated. According to the allegations made in the
Application, the Company failed to properly report negative developments which occurred on certain dates during the said IT project, and such failure caused the company immense financial damages.
|
C. |
Contingent liabilities (cont'd)
|
(7) |
In July 2018, an application for certification of a class action was filed with the Central District Court against the Company and its subsidiaries, Rotem Amfert Israel and
Fertilizers and Chemicals Ltd. (jointly hereinafter – the Defendants). The causes of action are the alleged exploitation of the Defendants' monopolistic position to charge consumers in Israel excessive and unfair prices for products
classified as "solid phosphate fertilizer" between 2011 and 2018, contrary to the provisions of the Restrictive Trade Practices Law, and unjust profits at the expense of the plaintiff and the represented group. The representative
plaintiff is a Kibbutz member who grows various plants and trees in his yard and in a nearby orchard.
|
(8) |
With respect to the transfer of water from the Northern Basin of the Dead Sea to the evaporation ponds in the Sea's Southern Basin, in 2015, a petition was filed in the Israeli
Court for Water Matters by Adam Teva V’Din - Israeli Association for Environmental Protection (ATD) wherein the Court was requested to order the Government Water and Sewage Authority (hereinafter – the Water Authority) to issue a
production license to DSW pursuant to the Water Law. The goal is to regulate and supervise the transfer of the water, as stated, including limitation of the quantities transferred.
|
C. |
Contingent liabilities (cont'd)
|
(8) |
(cont'd)
|
(9) |
In addition to the contingent liabilities, as stated above, as at the reporting date, the contingent liabilities regarding the matters of environmental protection and legal claims,
which are pending against the Group, are in immaterial amounts. It is noted that part of the above claims is covered by insurance. According to the Company’s estimation, the provisions recognized in its financial statements are
sufficient.
|
A. |
Composition:
|
As at December 31, 2020
|
As at December 31, 2019
|
|||
Authorized
|
Issued and paid
|
Authorized
|
Issued and paid
|
Number of Ordinary shares of Israeli Shekel 1 par value (in millions)
|
1,485
|
* 1,305
|
1,485
|
* 1,305
|
Number of Special State share of Israeli Shekel 1 par value
|
1
|
1
|
1
|
1
|
Number of Outstanding Shares (in millions)
|
As at January 1, 2019
|
1,305
|
Issuance of shares
|
-
|
As at December 31, 2019
|
1,305
|
Issuance of shares
|
-
|
As at December 31, 2020
|
1,305
|
B. |
Rights conferred by the shares
|
1. |
The ordinary shares grant their holders voting rights in General Meetings of the Company, the right to participate in shareholders’ meetings, the right to receive dividends and the
right to a share in excess assets upon liquidation of ICL.
|
2. |
The Special State of Israel Share, held by the State of Israel in order to monitor matters of vital interest to the State of Israel, grants special rights to make decisions, among
other things, on the following matters:
|
- |
Sale or transfer of Company assets, which are “essential” to the State of Israel, not in the ordinary course of business.
|
- |
Voluntary liquidation, change or reorganization of the organizational structure of ICL or merger (excluding mergers of entities controlled by ICL, directly or indirectly, that would
not impair the rights or power of the Government, as holder of the Special State Share).
|
- |
Any acquisition or holding of 14% or more of the issued share capital of ICL.
|
- |
The acquisition or holding of 25% or more of the issued share capital of ICL (including augmentation of an existing holding up to 25%), even if there was previously an understanding
regarding a holding of less than 25%.
|
- |
Any percentage of holding of the Company’s shares, which grants its holder the right, ability or actual possibility to appoint, directly or indirectly, such number of the Company’s
directors equal to half or more of the Company’s directors appointed.
|
B. |
Rights conferred by the shares (cont'd)
|
C. |
Share-based payments
|
Grant date
|
Employees entitled
|
Number of instruments (thousands)
|
Issuance's details
|
Instrument terms
|
Vesting conditions
|
Expiration date
|
August 6, 2014
|
Officers and senior employees
|
3,993
|
An issuance of non-marketable and non-transferrable options, for no consideration, under the 2014 Equity Compensation Plan.
|
Upon exercise, each option may be converted into one ordinary share of NIS 1 par value of the Company. In case that on the exercise date the closing price of an ordinary share is higher than
twice the exercise price (the “Share Value Cap”), the number of the exercised shares will be reduced so that the product of the exercised shares actually issued to an offeree multiplied by the share closing price will equal to the
product of the number of exercised options multiplied by the Share Value Cap.
|
3 equal tranches:
(1) one third on December 1, 2016
(2) one third on December 1, 2017
(3) one third on December 1, 2018
|
Two years from the vesting date.
|
December 11, 2014
|
Former CEO
|
367
|
||||
May 12, 2015
|
Officers and senior employees
|
6,729
|
Upon exercise, each option may be converted into one ordinary share of NIS 1 par value of the Company.
|
3 equal tranches:
(1) one third at the end of 12 months after the grant date
(2) one third at the end of 24 months after the grant date
(3) one third at the end of 36 months after the grant date
|
The first and second tranches is at the end of 36 months after the grant date for the third tranche is at the end of 48 months after the grant date.
|
|
June 29, 2015
|
Former CEO
|
530
|
||||
Former chairman of BOD
|
404
|
|||||
June 30, 2016
|
Officers and senior employees
|
3,035
|
June 30, 2023
|
|||
September 5, 2016
|
Former chairman of BOD
|
186
|
||||
February 14, 2017
|
Former CEO
|
114
|
February 14, 2024
|
|||
June 20, 2017
|
Officers and senior employees
|
6,868
|
June 20, 2024
|
|||
August 2, 2017
|
Former chairman of BOD
|
165
|
C. |
Share-based payments (cont'd)
|
1. |
Non-marketable options (cont'd)
|
Grant date
|
Employees entitled
|
Number of instruments (thousands)
|
Issuance's details
|
Instrument terms
|
Vesting conditions
|
Expiration date
|
March 6, 2018
|
Officers and senior employees
|
5,554
|
An issuance of non-marketable and non-transferrable options, for no consideration, under the 2014 Equity Compensation Plan.
|
Upon exercise, each option may be converted into one ordinary share of NIS 1 par value of the Company.
|
3 equal tranches:
(1) one third at the end of 12 months after the grant date
(2) one third at the end of 24 months after the grant date
(3) one third at the end of 36 months after the grant date
|
March 6, 2025
|
May 14, 2018
|
CEO
|
385
|
May 14, 2025
|
|||
August 20, 2018
|
Former chairman of BOD
|
403
|
August 20, 2025
|
|||
April 15, 2019
|
Officers and senior manager
|
13,242
|
2 equal tranches:
(1) half at the end of 24 months after the grant date.
(2) half at the end of 36 months after the grant date.
|
5 years after the grant date
|
||
June 27, 2019
|
CEO
|
3,512
|
||||
May 29, 2019 *
|
Chairman of BOD
|
2,169
|
2 equal tranches:
(1) half at the end of 24 months after the issuance date.
(2) half at the end of 36 months after the issuance date.
|
5 years after the issuance date
|
* |
The options were issued upon Mr. Doppelt's entry into office on July 1, 2019.
|
C. |
Share-based payments (cont'd)
|
1. |
Non-marketable options (cont'd)
|
2014 Plan
|
||||||
Granted 2014
|
Granted 2015
|
Granted 2016
|
Granted 2017
|
Granted 2018
|
Granted 2019
|
Share price (in $)
|
8.2
|
7.0
|
3.9
|
4.5
|
4.4
|
5.4
|
CPI-linked exercise price (in $)
|
8.4
|
7.2
|
4.3
|
4.3
|
4.3
|
5.3
|
Expected volatility:
|
||||||
First tranche
|
29.40%
|
25.40%
|
30.51%
|
31.88%
|
28.86%
|
27.85%
|
Second tranche
|
31.20%
|
25.40%
|
30.51%
|
31.88%
|
28.86%
|
27.85%
|
Third tranche
|
40.80%
|
28.80%
|
30.51%
|
31.88%
|
28.86%
|
27.85%
|
Expected life of options (in years):
|
||||||
First tranche
|
4.3
|
3.0
|
7.0
|
7.0
|
7.0
|
4.4
|
Second tranche
|
5.3
|
3.0
|
7.0
|
7.0
|
7.0
|
4.4
|
Third tranche
|
6.3
|
4.0
|
7.0
|
7.0
|
7.0
|
4.4
|
Risk-free interest rate:
|
||||||
First tranche
|
(0.17)%
|
(1.00)%
|
0.01%
|
0.37%
|
0.03%
|
(0.67)%
|
Second tranche
|
0.05%
|
(1.00)%
|
0.01%
|
0.37%
|
0.03%
|
(0.67)%
|
Third tranche
|
0.24%
|
(0.88)%
|
0.01%
|
0.37%
|
0.03%
|
(0.67)%
|
Fair value (in $ millions)
|
8.4
|
9.0
|
4.0
|
11.3
|
8.8
|
7.5
|
Weighted average grant date fair value per option (in $)
|
1.9
|
1.2
|
1.1
|
1.6
|
1.4
|
1.2
|
C. |
Share-based payments (cont'd)
|
1. |
Non-marketable options (cont'd)
|
Number of options (in millions)
|
|
2014 Plan
|
Balance as at January 1, 2019
|
18
|
Movement in 2019:
|
|
Granted during the year
|
19
|
Expired during the year
|
(3)
|
Forfeited during the year
|
(3)
|
Exercised during the year
|
(1)
|
Total options outstanding as at December 31, 2019
|
30
|
Movement in 2020:
|
|
Expired during the year
|
(2)
|
Exercised during the year
|
(1)
|
Total options outstanding as at December 31, 2020
|
27
|
C. |
Share-based payments (cont'd)
|
1. |
Non-marketable options (cont'd)
|
December 31, 2020
|
December 31, 2019
|
December 31, 2018
|
Granted 2014 US Dollar
|
-
|
7.15
|
6.77
|
Granted 2015 US Dollar
|
-
|
-
|
6.92
|
Granted 2016 US Dollar
|
4.56
|
4.36
|
4.21
|
Granted 2017 US Dollar
|
4.17
|
4.01
|
3.89
|
Granted 2018 US Dollar
|
4.12
|
3.99
|
3.89
|
Granted 2019 US Dollar
|
5.66
|
5.42
|
-
|
December 31, 2020
|
December 31, 2019
|
December 31, 2018
|
Number of options exercisable (In Millions)
|
11
|
12
|
11
|
Weighted average exercise price in Israeli Shekel
|
13.89
|
15.19
|
18.53
|
Weighted average exercise price in US Dollar
|
4.32
|
4.40
|
4.94
|
December 31, 2020
|
December 31, 2019
|
December 31, 2018
|
Range of exercise price in Israeli Shekel
|
13.15-18.32
|
13.55-24.71
|
14.26-25.93
|
Range of exercise price in US Dollar
|
4.09-5.70
|
3.92-7.15
|
3.81-6.92
|
December 31, 2020
|
December 31, 2019
|
December 31, 2018
|
Average remaining contractual life
|
3.58
|
3.85
|
3.90
|
C. |
Share-based payments (cont'd)
|
2. |
Restricted shares
|
Grant date
|
Employees entitled
|
Number of instruments (thousands)
|
Vesting conditions (*)
|
Instrument terms
|
Additional Information
|
Fair value at the grant date (Million)
|
August 6, 2014
|
Officers and senior employees
|
922
|
3 equal tranches:
(1) one third on December 1, 2016
(2) one third on December 1, 2017
(3) one third on December 1, 2018
|
An issuance for no consideration, under the 2014 Equity Compensation Plan.
|
The value of the restricted shares was determined according to the closing price on the TASE on the most recent trading day preceding the grant date (the approval date of the BOD and/or
the date of the approval of the General Meeting where required).
|
7.6
|
February 26, 2015
|
ICL’s Directors (excluding ICL's CEO)
|
99
|
3 tranches:
(1) 50% will vest August 28, 2015
(2) 25% will vest February 26, 2017
(3) 25% will vest February 26, 2018
|
0.7
|
||
May 12, 2015
|
Officers and senior employees
|
1,194
|
3 equal tranches:
(1) one third at the end of 12 months after the grant date
(2) one third at the end of 24 months after the grant date
(3) one third at the end of 36 months after the grant date
|
8.8
|
||
June 29, 2015
|
Former chairman of the BOD
|
68
|
||||
December 23, 2015
|
ICL’s Directors (excluding ICL's CEO & Chairman of the BOD)
|
121
|
3 equal tranches:
(1) one third on December 23, 2016
(2) one third on December 23, 2017
(3) one third on December 23, 2018
|
0.5
|
||
June 30, 2016
|
Officers and senior employees
|
990
|
3 equal tranches:
(1) one third at the end of 12 months after the grant date
(2) one third at the end of 24 months after the grant date
(3) one third at the end of 36 months after the grant date
|
4.1
|
||
September 5, 2016
|
Former chairman of BOD
|
55
|
C. |
Share-based payments (cont'd)
|
2. |
Restricted shares (cont’d)
|
Grant date
|
Employees entitled
|
Number of instruments (thousands)
|
Vesting conditions (*)
|
Instrument terms
|
Additional Information
|
Fair value at the grant date (Million)
|
January 3, 2017
|
ICL’s Directors (excluding ICL's Chairman of the BOD)
|
146
|
3 equal tranches:
(1) one third at the end of 12 months after the grant date
(2) one third at the end of 24 months after the grant date
(3) one third at the end of 36 months after the grant date
|
An issuance for no consideration, under the 2014 Equity Compensation Plan.
The value includes a reduction of 5% from the value of the equity compensation, pursuant to the decision of the directors
in March 2016, to reduce their annual compensation for 2016 and 2017.
|
The value of the restricted shares was determined according to the closing price on the TASE on the most recent trading day preceding the grant date (the approval date of the BOD and/or
the date of the approval of the General Meeting where required).
|
0.6
|
February 14, 2017
|
Former CEO
|
38
|
An issuance for no consideration, under the 2014 Equity Compensation Plan.
|
0.2
|
||
June 20, 2017
|
Officers and Senior employees
|
2,211
|
10
|
|||
August 2, 2017
|
Former chairman of BOD
|
53
|
0.3
|
|||
January 10, 2018
|
ICL’s Directors (excluding ICL's CEO & Chairman of the BOD)
|
137
|
0.6
|
|||
March 6, 2018
|
Officers and senior employees
|
1,726
|
8
|
|||
May 14, 2018
|
CEO
|
121
|
0.6
|
|||
August 20, 2018
|
Former chairman of BOD
|
47
|
0.2
|
|||
ICL’s Directors (excluding ICL's CEO & Chairman of the BOD)
|
88
|
Acceleration at January 2019.
|
0.4
|
|||
April 23, 2020
|
ICL’s Directors (excluding directors who are officers or directors of Israel Corporation Ltd.)
|
177
|
3 equal tranches:
(1) one third on January 1, 2021
(2) one third on January 1, 2022
(3) one third on January 1,2023
|
An issuance
for no consideration, under the amended 2014 Equity Compensation Plan.
|
The value of the restricted shares was determined according to the closing price on the TASE on the most recent trading day preceding the Grant Date (the approval date of the annual
General Meeting of shareholders).
|
0.6
|
C. |
Share-based payments (cont'd)
|
2. |
Restricted shares (cont’d)
|
D. |
Dividends distributed to the Company's Shareholders
|
Board of Directors decision date
to distribute
the dividend
|
Actual date of
distribution of
the dividend
|
Gross amount of the dividend
distributed
(in millions of $)
|
Net amount of
the distribution
(net of the
subsidiary’s share)
(in millions of $)
|
Amount of
the dividend
per share
(in $)
|
February 13, 2018
|
March 14, 2018
|
70
|
69
|
0.05
|
May 10, 2018
|
June 20, 2018
|
52
|
51
|
0.04
|
July 31, 2018
|
September 4, 2018
|
56
|
56
|
0.04
|
October 31, 2018
|
December 19, 2018
|
66
|
65
|
0.05
|
Total 2018
|
244
|
241
|
0.18
|
|
February 5, 2019
|
March 13, 2019
|
62
|
61
|
0.05
|
May 7, 2019
|
June 19, 2019
|
76
|
75
|
0.06
|
July 31, 2019
|
September 24, 2019
|
74
|
73
|
0.06
|
November 6, 2019
|
December 18, 2019
|
65
|
64
|
0.05
|
Total 2019
|
277
|
273
|
0.22
|
|
February 12, 2020
|
March 18, 2020
|
23
|
23
|
0.02
|
May 11, 2020
|
June 17, 2020
|
30
|
30
|
0.02
|
July 28, 2020
|
September 16, 2020
|
36
|
36
|
0.03
|
November 11, 2020
|
December 16, 2020
|
29
|
29
|
0.02
|
Total 2020
|
118
|
118
|
0.09
|
|
February 11, 2021 (after the reporting date)*
|
March 16, 2021
|
34
|
34
|
0.03
|
E. |
Cumulative translation adjustment
|
F. |
Capital reserves
|
G. |
Treasury shares
|
1) |
During 2008 and 2009 22.4 million shares were acquired by the Group under a purchase plan, for a total consideration of approximately $258 million. Total shares held by the Group
are about 24.5 million.
|
2) |
In determining the amount of retained earnings available for distribution as a dividend pursuant to the Israeli Companies Law, the amount of self‑acquisitions (that are presented
separately in the “treasury shares” category in the equity section), must be deduct from the balance of the retained earnings.
|
H. |
Retained earnings
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Sales
|
5,043
|
5,271
|
5,556
|
Cost of sales
|
|||
Materials consumed
|
1,647
|
1,702
|
1,643
|
Cost of labor
|
794
|
766
|
791
|
Depreciation and amortization
|
416
|
384
|
384
|
Energy and fuel
|
316
|
340
|
349
|
Other(*)
|
380
|
262
|
535
|
3,553
|
3,454
|
3,702
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Selling, transport and marketing expenses
|
|||
Land and Marine transportation
|
515
|
509
|
553
|
Cost of labor
|
134
|
133
|
125
|
Other
|
117
|
125
|
120
|
766
|
767
|
798
|
|
General and administrative expenses
|
|||
Cost of labor
|
136
|
153
|
172
|
Professional Services
|
32
|
42
|
44
|
Other
|
64
|
59
|
41
|
232
|
254
|
257
|
|
Research and development expenses, net
|
|||
Cost of labor
|
40
|
36
|
38
|
Other
|
14
|
14
|
17
|
54
|
50
|
55
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Other income
|
|||
Past service cost
|
11
|
5
|
7
|
Capital gain
|
-
|
12
|
841
|
Reversal of Impairment of fixed assets
|
-
|
10
|
-
|
Reversal of provision for legal claims
|
-
|
7
|
-
|
Other
|
9
|
6
|
11
|
Other income recorded in the income statements
|
20
|
40
|
859
|
Other expenses
|
|||
Impairment of fixed assets
|
90
|
-
|
19
|
Provision for historical waste removal and site closure costs
|
83
|
7
|
18
|
Provision for early retirement and dismissal of employees
|
78
|
5
|
7
|
Provision for legal claims
|
-
|
14
|
31
|
Environment related provisions
|
-
|
-
|
1
|
Other
|
5
|
4
|
8
|
Other expenses recorded in the income statements
|
256
|
30
|
84
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Financing income and expenses
|
|||
Financing income:
|
|||
Net gain from change in fair value of derivative designated as cash flow hedge
|
54
|
38
|
-
|
Interest income from banks and others
|
7
|
8
|
3
|
Financing income in relation to employee benefits
|
-
|
-
|
7
|
Net gain from change in fair value of derivative designated as economic hedge
|
-
|
45
|
-
|
Net gain from changes in exchange rates
|
-
|
-
|
46
|
61
|
91
|
56
|
|
Financing expenses:
|
|||
Interest expenses to banks and others
|
120
|
125
|
117
|
Net loss from changes in exchange rates
|
58
|
72
|
-
|
Financing expenses in relation to employees' benefits
|
38
|
39
|
-
|
Net loss from change in fair value of derivative designated as economic hedge
|
23
|
-
|
101
|
Banks and finance institutions commissions (mainly commission on early repayment of loans)
|
4
|
3
|
18
|
Financing expenses
|
243
|
239
|
236
|
Net of borrowing costs capitalized
|
24
|
19
|
22
|
219
|
220
|
214
|
|
Net financing expenses recorded in the income statements
|
158
|
129
|
158
|
As at December 31, 2020
|
|||||
Financial assets
|
Financial liabilities
|
||||
Measured at fair value through the statement of income
|
Measured at fair value through the statement of comprehensive income
|
Measured at amortized cost
|
Measured at fair value through the statement of income
|
Measured at amortized cost
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Current assets
|
|||||
Cash and cash equivalents
|
-
|
-
|
214
|
-
|
-
|
Short-term investments and deposits
|
-
|
-
|
100
|
-
|
-
|
Trade receivables
|
-
|
-
|
883
|
-
|
-
|
Other receivables
|
-
|
-
|
122
|
-
|
-
|
Investments at fair value through other comprehensive income
|
-
|
53
|
-
|
-
|
-
|
Foreign currency and interest derivative designated as economic hedge
|
24
|
-
|
-
|
-
|
-
|
Non-current assets
|
|||||
Foreign currency and interest derivative instruments designated as cash flow hedge
|
115
|
-
|
-
|
-
|
-
|
Investments at fair value through other comprehensive income
|
-
|
83
|
-
|
-
|
-
|
Other non-current asset
|
-
|
-
|
8
|
-
|
-
|
Total financial assets
|
139
|
136
|
1,327
|
-
|
-
|
Current liabilities
|
|||||
Short term debt
|
-
|
-
|
-
|
-
|
(679)
|
Trade payables
|
-
|
-
|
-
|
-
|
(740)
|
Other current liabilities
|
-
|
-
|
-
|
-
|
(156)
|
Foreign currency and interest derivative designated as economic hedge
|
-
|
-
|
-
|
(42)
|
-
|
Energy and marine transport derivative designated as economic hedge
|
-
|
-
|
-
|
(1)
|
-
|
Non-current liabilities
|
|||||
Long term debt and debentures
|
-
|
-
|
-
|
-
|
(2,053)
|
Foreign currency and interest derivative designated as economic hedge
|
-
|
-
|
-
|
(13)
|
-
|
Foreign currency and interest derivative instruments designated as cash flow hedge
|
-
|
-
|
-
|
(28)
|
-
|
Other non- current liabilities
|
-
|
-
|
-
|
-
|
(53)
|
Total financial liabilities
|
-
|
-
|
-
|
(84)
|
(3,681)
|
Total financial instruments, net
|
139
|
136
|
1,327
|
(84)
|
(3,681)
|
As at December 31, 2019
|
||||||
Financial assets
|
Financial liabilities
|
|||||
Measured at fair value through the statement of income
|
Measured at fair value through the statement of comprehensive income
|
Measured at amortized cost
|
Measured at fair value through the statement of income
|
Measured at amortized cost
|
||
$ millions
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Current assets
|
|||||
Cash and cash equivalents
|
-
|
-
|
95
|
-
|
-
|
Short-term investments and deposits
|
-
|
-
|
96
|
-
|
-
|
Trade receivables
|
-
|
-
|
778
|
-
|
-
|
Other receivables
|
-
|
-
|
105
|
-
|
-
|
Foreign currency and interest derivative designated as economic hedge
|
10
|
-
|
-
|
-
|
-
|
Energy and marine transport derivative designated as economic hedge
|
1
|
-
|
-
|
-
|
-
|
Investments at fair value through other comprehensive income
|
-
|
40
|
-
|
-
|
-
|
Non-current assets
|
|||||
Investments at fair value through other comprehensive income
|
-
|
111
|
-
|
-
|
-
|
Foreign currency and interest derivative instruments designated as cash flow hedge
|
57
|
-
|
-
|
-
|
-
|
Other non-current asset
|
-
|
-
|
6
|
-
|
-
|
Total financial assets
|
68
|
151
|
1,080
|
-
|
-
|
Current liabilities
|
|||||
Short term debt
|
-
|
-
|
-
|
-
|
(420)
|
Trade payables
|
-
|
-
|
-
|
-
|
(712)
|
Other current liabilities
|
-
|
-
|
-
|
(128)
|
|
Foreign currency and interest derivative designated as economic hedge
|
-
|
-
|
-
|
(5)
|
|
Energy and marine transport derivative designated as economic hedge
|
-
|
-
|
-
|
(3)
|
|
Non-current liabilities
|
|||||
Long term debt and debentures
|
-
|
-
|
-
|
-
|
(2,181)
|
Foreign currency and interest derivative designated as economic hedge
|
-
|
-
|
-
|
(6)
|
|
Other non- current liabilities
|
-
|
-
|
-
|
-
|
(38)
|
Total financial liabilities
|
-
|
-
|
-
|
(14)
|
(3,479)
|
Total financial instruments, net
|
68
|
151
|
1,080
|
(14)
|
(3,479)
|
As at December 31
|
||
Carrying amount ($ millions)
|
||
2020
|
2019
|
Cash and cash equivalents
|
214
|
95
|
Short term investments and deposits
|
100
|
96
|
Trade receivables
|
883
|
778
|
Other receivables
|
122
|
105
|
Derivatives
|
139
|
68
|
Other non-current assets
|
8
|
6
|
1,466
|
1,148
|
As at December 31
|
||
Carrying amount ($ millions)
|
||
2020
|
2019
|
Europe
|
330
|
252
|
Asia
|
258
|
249
|
North America
|
144
|
114
|
South America
|
68
|
74
|
Israel
|
67
|
72
|
Other
|
16
|
17
|
883
|
778
|
As at December 31
|
||||
2020
|
2019
|
|||
Gross
|
Impairment
|
Gross
|
Impairment
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Not past due
|
788
|
-
|
661
|
-
|
Past due up to 3 months
|
58
|
-
|
65
|
-
|
Past due 3 to 12 months
|
7
|
(1)
|
26
|
(1)
|
Past due over 12 months
|
40
|
(9)
|
29
|
(2)
|
893
|
(10)
|
781
|
(3)
|
2020
|
2019
|
|
$ millions
|
$ millions
|
Balance as at January 1
|
3
|
3
|
Additional allowance
|
5
|
2
|
Write offs
|
-
|
(1)
|
Reversals
|
-
|
(1)
|
Changes due to translation differences
|
2
|
-
|
Balance as at December 31
|
10
|
3
|
As at December 31, 2020
|
|||||
Carrying amount
|
12 months or less
|
1-2 years
|
3-5 years
|
More than 5 years
|
|
$ millions
|
Non-derivative financial liabilities
|
|||||
Short term debt (not including current maturities)
|
296
|
299
|
-
|
-
|
-
|
Trade payables
|
740
|
740
|
-
|
-
|
-
|
Other current liabilities
|
156
|
156
|
-
|
-
|
-
|
Long-term debt, debentures and others
|
2,489
|
489
|
529
|
859
|
1,559
|
3,681
|
1,684
|
529
|
859
|
1,559
|
|
Financial liabilities – derivative instruments
|
|||||
Foreign currency and interest derivative designated as economic hedge
|
55
|
42
|
-
|
-
|
13
|
Energy and marine transport derivative designated as economic hedge
|
1
|
1
|
-
|
-
|
-
|
Foreign currency and interest derivative designated as cash flow hedge
|
28
|
-
|
-
|
-
|
28
|
84
|
43
|
-
|
-
|
41
|
As at December 31, 2019
|
|||||
Carrying amount
|
12 months or less
|
1-2 years
|
3-5 years
|
More than 5 years
|
|
$ millions
|
Non-derivative financial liabilities
|
|||||
Short term debt (not including current maturities)
|
358
|
361
|
-
|
-
|
-
|
Trade payables
|
712
|
712
|
-
|
-
|
-
|
Other current liabilities
|
128
|
128
|
-
|
-
|
-
|
Long-term debt and debentures
|
2,281
|
157
|
645
|
1,101
|
1,288
|
3,479
|
1,358
|
645
|
1,101
|
1,288
|
|
Financial liabilities – derivative instruments utilized for economic hedging
|
|||||
Foreign currency and interest derivative designated as economic hedge
|
11
|
5
|
-
|
-
|
6
|
Energy and marine transport derivative designated as economic hedge
|
3
|
3
|
-
|
-
|
-
|
14
|
8
|
-
|
-
|
6
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Fixed rate instruments
|
|
|
Financial assets
|
165
|
164
|
Financial liabilities
|
(2,450)
|
(1,947)
|
(2,285)
|
(1,783)
|
|
Variable rate instruments
|
||
Financial assets
|
223
|
100
|
Financial liabilities
|
(296)
|
(669)
|
(73)
|
(569)
|
As at December 31, 2020
|
||||
Impact on profit (loss)
|
||||
Decrease of 1% in interest
|
Decrease of 0.5% in interest
|
Increase of 0.5% in interest
|
Increase of 1% in interest
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
SWAP instruments
|
||||
Changes in U.S. Dollar interest
|
(39)
|
(19)
|
18
|
36
|
Changes in Israeli Shekel interest
|
49
|
24
|
(22)
|
(42)
|
Changes in Euro interest
|
(2)
|
(1)
|
1
|
2
|
As at December 31, 2020
|
||||
Carrying amount
(fair value) |
Stated
amount
|
Maturity
date
|
Interest rate
range
|
|
$ millions
|
$ millions
|
Years
|
%
|
U.S. Dollar
|
||||
SWAP contracts from variable interest to fixed interest
|
(13)
|
150
|
2024
|
2.47%-2.60%
|
Israeli Shekel
|
||||
SWAP contracts from fixed ILS interest to fixed USD interest
|
87
|
701
|
2034
|
2.40%-4.47%
|
GBP
|
||||
SWAP contracts from variable USD interest to fixed GBP interest.
|
5
|
63
|
18/05/2021
|
1-month libor
|
Euro
|
||||
SWAP contracts from variable USD interest to fixed EUR interest
|
(41)
|
324
|
19/05/2021
|
1-month libor
|
As at December 31, 2019
|
||||
Carrying amount
(fair value) |
Stated
amount
|
Maturity
date
|
Interest rate
range
|
|
$ millions
|
$ millions
|
Years
|
%
|
U.S. Dollar
|
||||
SWAP contracts from variable interest to fixed interest
|
(6)
|
150
|
2024
|
2.47%-2.60%
|
Israeli Shekel
|
||||
SWAP contracts from fixed ILS interest to fixed USD interest
|
57
|
482
|
2024
|
2.45%-4.47%
|
Euro
|
||||
SWAP contracts from variable USD interest to fixed EUR interest
|
(3)
|
447
|
19/02/2020
|
1-month libor
|
As at December 31
|
||
Impact on profit (loss)
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Non-derivative financial instruments
|
||
U.S. Dollar/Euro
|
(96)
|
(95)
|
U.S. Dollar/Israeli Shekel
|
134
|
98
|
U.S. Dollar/British Pound
|
2
|
(4)
|
U.S. Dollar/Chinese Yuan
|
(1)
|
(1)
|
U.S. Dollar/Turkey Lira
|
(1)
|
(1)
|
As at December 31, 2020
|
||||
Increase 10%
|
Increase 5%
|
Decrease 5%
|
Decrease 10%
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Euro/ U.S. Dollar
|
||||
Forward transactions
|
14
|
7
|
(8)
|
(17)
|
Options
|
4
|
2
|
(3)
|
(6)
|
SWAP
|
33
|
18
|
(19)
|
(41)
|
U.S. Dollar/Israeli Shekel
|
||||
Forward transactions
|
(39)
|
(20)
|
23
|
48
|
Options
|
(26)
|
(14)
|
19
|
44
|
SWAP
|
(82)
|
(43)
|
48
|
101
|
British Pound/U.S. Dollar
|
||||
Forward transactions
|
(3)
|
(1)
|
1
|
3
|
Options
|
(1)
|
-
|
1
|
1
|
SWAP
|
(6)
|
(3)
|
4
|
8
|
U.S. Dollar/Japanese Yen
|
||||
Forward transactions
|
1
|
-
|
-
|
(1)
|
As at December 31, 2020
|
|||
Carrying amount
|
Stated amount
|
Average
|
|
$ millions
|
$ millions
|
exchange rate
|
Forward contracts
|
|||
U.S. Dollar/Israeli Shekel
|
8
|
377
|
3.2
|
Euro/U.S. Dollar
|
-
|
150
|
1.2
|
U.S. Dollar/British Pound
|
-
|
27
|
1.4
|
U.S. Dollar/Chinese Yuan Renminbi
|
-
|
23
|
6.6
|
Other
|
-
|
53
|
-
|
Currency and interest SWAPs
|
|||
U.S. Dollar/Israeli Shekel
|
87
|
701
|
3.7
|
Euro/U.S. Dollar
|
(41)
|
324
|
1.1
|
U.S. Dollar/British Pound
|
5
|
63
|
1.3
|
Put options
|
|||
U.S. Dollar/Israeli Shekel
|
13
|
400
|
3.3
|
Euro/U.S. Dollar
|
-
|
47
|
1.2
|
U.S. Dollar/Japanese Yen
|
-
|
2
|
107
|
U.S. Dollar/British Pound
|
-
|
10
|
1.3
|
Call options
|
|||
U.S. Dollar/Israeli Shekel
|
(1)
|
380
|
3.3
|
Euro/U.S. Dollar
|
(2)
|
47
|
1.2
|
U.S. Dollar/Japanese Yen
|
-
|
2
|
107
|
U.S. Dollar/British Pound
|
-
|
10
|
1.3
|
As at December 31, 2019
|
|||
Carrying amount
|
Stated amount
|
Average
|
|
$ millions
|
$ millions
|
exchange rate |
Forward contracts
|
|||
U.S. Dollar/Israeli Shekel
|
-
|
309
|
3.5
|
Euro/U.S. Dollar
|
(1)
|
61
|
1.1
|
U.S. Dollar/British Pound
|
-
|
33
|
1.3
|
U.S. Dollar/Chinese Yuan Renminbi
|
-
|
28
|
7.1
|
Other
|
4
|
56
|
0.9
|
Currency and interest SWAPs
|
|||
U.S. Dollar/Israeli Shekel
|
57
|
482
|
3.7
|
Euro/U.S. Dollar
|
(3)
|
447
|
1.1
|
Put options
|
|||
U.S. Dollar/Israeli Shekel
|
4
|
600
|
3.4
|
Euro/U.S. Dollar
|
-
|
45
|
1.1
|
U.S. Dollar/Japanese Yen
|
-
|
1
|
108.5
|
U.S. Dollar/British Pound
|
-
|
15
|
1.3
|
Call options
|
|||
U.S. Dollar/Israeli Shekel
|
-
|
440
|
3.4
|
Euro/U.S. Dollar
|
1
|
45
|
1.1
|
As at December 31, 2020
|
||||||||
US Dollar
|
Euro
|
British Pound
|
Israeli Shekel
|
Brazilian Real
|
Chinese Yuan Renminbi
|
Other
|
Total
|
Non-derivative instruments:
|
||||||||
Cash and cash equivalents
|
114
|
13
|
5
|
2
|
6
|
60
|
14
|
214
|
Short term investments and deposits
|
88
|
5
|
-
|
-
|
-
|
4
|
3
|
100
|
Trade receivables
|
454
|
227
|
35
|
58
|
21
|
51
|
37
|
883
|
Other receivables
|
72
|
41
|
-
|
7
|
-
|
-
|
2
|
122
|
Investments at fair value through other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
136
|
-
|
136
|
Other non-current assets
|
1
|
3
|
-
|
-
|
4
|
-
|
-
|
8
|
Total financial assets
|
729
|
289
|
40
|
67
|
31
|
251
|
56
|
1,463
|
Short-term debt
|
267
|
70
|
85
|
181
|
7
|
68
|
1
|
679
|
Trade payables
|
145
|
163
|
21
|
326
|
11
|
66
|
8
|
740
|
Other current liabilities
|
41
|
68
|
4
|
17
|
-
|
26
|
156
|
|
Long term debt, debentures and others
|
1,211
|
36
|
22
|
716
|
2
|
60
|
6
|
2,053
|
Other non-current liabilities
|
2
|
51
|
-
|
-
|
-
|
-
|
-
|
53
|
Total financial liabilities
|
1,666
|
388
|
132
|
1,240
|
20
|
220
|
15
|
3,681
|
Total non-derivative financial instruments, net
|
(937)
|
(99)
|
(92)
|
(1,173)
|
11
|
31
|
41
|
(2,218)
|
Derivative instruments:
|
||||||||
Forward transactions
|
-
|
150
|
27
|
377
|
15
|
23
|
38
|
630
|
Cylinder
|
-
|
47
|
10
|
400
|
20
|
-
|
2
|
479
|
SWAPS – U.S. Dollar into Israeli Shekel
|
-
|
-
|
-
|
701
|
-
|
-
|
-
|
701
|
SWAPS – U.S. Dollar into Euro
|
-
|
324
|
-
|
-
|
-
|
-
|
-
|
324
|
SWAPS – U.S. Dollar into British Pound
|
-
|
-
|
63
|
-
|
-
|
-
|
-
|
63
|
Total derivative instruments
|
-
|
521
|
100
|
1,478
|
35
|
23
|
40
|
2,197
|
Net exposure
|
(937)
|
422
|
8
|
305
|
46
|
54
|
81
|
(21)
|
As at December 31, 2019
|
||||||||
US Dollar
|
Euro
|
British Pound
|
Israeli Shekel
|
Brazilian Real
|
Chinese Yuan Renminbi
|
Others
|
Total
|
Non-derivative instruments:
|
||||||||
Cash and cash equivalents
|
18
|
19
|
4
|
4
|
6
|
33
|
11
|
95
|
Short term investments and deposits
|
89
|
1
|
-
|
-
|
-
|
3
|
3
|
96
|
Trade receivables
|
381
|
177
|
37
|
50
|
22
|
48
|
63
|
778
|
Other receivables
|
84
|
16
|
-
|
3
|
-
|
-
|
2
|
105
|
Investments at fair value through other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
151
|
-
|
151
|
Other non-current assets
|
3
|
1
|
-
|
-
|
2
|
-
|
-
|
6
|
Total financial assets
|
575
|
214
|
41
|
57
|
30
|
235
|
79
|
1,231
|
Short-term debt
|
198
|
95
|
18
|
58
|
4
|
47
|
-
|
420
|
Trade payables
|
172
|
178
|
22
|
247
|
9
|
79
|
5
|
712
|
Other current liabilities
|
19
|
44
|
4
|
47
|
-
|
12
|
2
|
128
|
Long term debt, debentures and others
|
1,452
|
34
|
29
|
596
|
7
|
60
|
4
|
2,182
|
Other non-current liabilities
|
38
|
38
|
||||||
Total financial liabilities
|
1,841
|
389
|
73
|
948
|
20
|
198
|
11
|
3,480
|
Total non-derivative financial instruments, net
|
(1,266)
|
(175)
|
(32)
|
(891)
|
10
|
37
|
68
|
(2,249)
|
Derivative instruments:
|
||||||||
Forward transactions
|
-
|
61
|
33
|
309
|
-
|
28
|
56
|
487
|
Cylinder
|
-
|
45
|
15
|
600
|
-
|
-
|
-
|
660
|
SWAPS – U.S. Dollar into Israeli Shekel
|
-
|
-
|
-
|
482
|
-
|
-
|
-
|
482
|
SWAPS – U.S. Dollar into Euro
|
-
|
447
|
-
|
-
|
-
|
-
|
-
|
447
|
Total derivative instruments
|
-
|
553
|
48
|
1,391
|
-
|
28
|
56
|
2,076
|
Net exposure
|
(1,266)
|
378
|
16
|
500
|
10
|
65
|
124
|
(173)
|
As at December 31, 2020
|
As at December 31, 2019
|
|||
Carrying amount
|
Fair value
|
Carrying amount
|
Fair value
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Loans bearing fixed interest (1)
|
89
|
96
|
74
|
82
|
Debentures bearing fixed interest
|
||||
Marketable (2)
|
1,625
|
1,870
|
1,237
|
1,395
|
Non-marketable (3)
|
281
|
296
|
281
|
293
|
1,995
|
2,262
|
1,592
|
1,770
|
(1) |
The fair value of the Shekel, Euro, and Yuan loans issued bearing fixed interest is based on calculation of the present value of the cash flows in respect of the principal and the
interest and is discounted at the market interest rates on the measurement date for similar loans having similar characteristics and is classified as Level 2 in the fair value hierarchy. The average discount interest as of December 31,
2020 for the Shekel, Euro and Yuan loans was 1.6%, 1.4% and 5.1%, respectively (December 31, 2019 for the Shekel, Euro and Yuan loans 1.4%, 1.3%, and 4.2%, respectively).
|
(2) |
The fair value of the marketable debentures is based on the quoted stock exchange price and is classified as Level 1 in the fair value hierarchy.
|
(3) |
The fair value of the non‑marketable debentures is based on calculation of the present value of the cash flows in respect of the principal and the interest and is discounted at the
Libor rate customary in the market for similar loans having similar characteristics and is classified as Level 2 in the fair value hierarchy. The average discount interest as of December 31, 2020 was 2.6% (December 31, 2019 – 3.7%).
|
Level 1
|
As at December 31, 2020
|
As at December 31, 2019
|
$ millions
|
$ millions
|
Investments at fair value through other comprehensive income
|
136
|
151
|
Level 2
|
As at December 31, 2020
|
As at December 31, 2019
|
$ millions
|
$ millions
|
Derivatives designated as economic hedge, net
|
(32)
|
(3)
|
Derivatives designated as cash flow hedge, net
|
87
|
57
|
55
|
54
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Earnings attributed to the shareholders of the Company
|
11
|
475
|
1,240
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
Shares thousands
|
Shares thousands
|
Shares thousands
|
Balance as at January 1
|
1,279,379
|
1,278,084
|
1,276,238
|
Shares issued during the year
|
29
|
98
|
73
|
Shares vested
|
618
|
768
|
898
|
Weighted average number of ordinary shares used in computation of the basic earnings per share
|
1,280,026
|
1,278,950
|
1,277,209
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
Shares thousands
|
Shares thousands
|
Shares thousands
|
Weighted average number of ordinary shares used in the computation of the basic earnings per share
|
1,280,026
|
1,278,950
|
1,277,209
|
Effect of stock options and restricted shares
|
247
|
3,106
|
2,572
|
Weighted average number of ordinary shares used in the computation of the diluted earnings per share
|
1,280,273
|
1,282,056
|
1,279,781
|
A. |
Parent company and subsidiaries
|
A. |
Parent company and subsidiaries (cont'd)
|
For the year ended December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Short-term benefits
|
9
|
13
|
Post-employment benefits
|
1
|
1
|
Share-based payments
|
7
|
8
|
Total *
|
17
|
22
|
* To interested parties employed by the Company
|
3
|
5
|
* To interested parties not employed by the Company
|
2
|
1
|
For the year ended December 31
|
|||
2020
|
2019
|
2018
|
|
$ millions
|
$ millions
|
$ millions
|
Sales
|
3
|
4
|
5
|
Cost of sales
|
3
|
8
|
19
|
Selling, transport and marketing expenses
|
7
|
10
|
7
|
Financing expenses (income), net
|
(1)
|
(1)
|
3
|
General and administrative expenses
|
1
|
1
|
1
|
Management fees to the parent company
|
1
|
1
|
1
|
(1) |
On November 9, 2020, and November 11, 2020, our Audit and Accounting Committee and Board of Directors, respectively, approved, and on January 5, 2021, our general meeting of
shareholders approved, the renewal of the management services agreement between the Company and Israel Corp. effective retroactively as of January 1, 2021, for an additional term of three years, expiring on December 31, 2023. According
to the renewed management services agreement, the annual management fee to be paid to Israel Corp for each calendar year shall continue to be $1 million plus VAT. During the term of the agreement, the Company will not pay or grant any
cash or equity compensation for the service of our directors who are office holders of Israel Corp. (except for the separate compensation arrangement between the Company and our Executive Chairman
of the Board, Mr. Yoav Doppelt, as approved by our shareholders in May 2019, and as may be amended by shareholder approval from time to time). The Audit & Accounting Committee will continue to annually examine the reasonableness of
the management fees paid in the previous year against the management services actually provided by Israel Corp to the Company in the same year. On February 28, 2021, the Audit & Accounting Committee examined the management services
that were actually rendered in 2020 against the management fees paid in that year and concluded that the fees were reasonable.
|
(2) |
On January 30, 2020, our shareholders approved a new three-year framework transaction for the
Company's engagement in directors' and officers' liability insurance policies, starting February 1, 2020 (the "New Framework Transaction"). The insurance policies under the New Framework Transaction shall include a joint primary tier
with Israel Corp. with a joint liability cap of up to $20 million, and a separate tier covering the Company alone, with a liability cap of up to $330 million, with a total liability limit of up to $350 million for both tiers.
Our directors and officers are beneficiaries of both tiers. Pursuant to the New Framework Agreement, the cost of the annual premium shall not exceed a cap of $10 million for both tiers. The division of
the premium amount between the Company and Israel Corp. in the joint tier are 80% to be paid by the Company and 20% by the Israel Corp, and the HR & Compensation Committee and the Board of Directors have the authority to change,
from time to time, the premium allocation in respect of the joint tier between the companies, according to the recommendation of the insurers and/or brokers, and provided that such changes will not exceed 25% over the entire
transaction period. Deviation from these limits shall require shareholder approval. In accordance with the terms of the New Framework Transaction and the Company's Compensation Policy, the Company's directors’ and officers’
liability insurance policy for 2020, was approved by the Company's authorized organs, effective as of February 1, 2020. The 2020 directors’ and officers’ liability insurance policy includes a liability limit of US$165 million for
both tiers (comprised of a limit of $100 million, with an additional coverage Side A (directors and officers only) limit of $65 million). The Company's directors’ and officers’ liability insurance policy for 2020 was extended until
March 1, 2021, and the Company is in the final stages of renewing the Company's directors’ and officers’ liability insurance policy for 2021, which is expected to include lower coverage at higher cost due to the current market for
these policies.
|
(3) |
Until March 2020, a framework agreement with the Company’s controlling shareholder, Israel Corp., was in effect. According to the framework agreement, which
was approved in March 2017, by ICL's Audit and Accounting Committee and its Board of Directors, for a period of the three years, Israel Corp. was entitled to deposit, from time to time, an amount of up to $150 million in short‑term
U.S. dollar or shekel deposits in ICL, subject to ICL’s approval. In August 2017, the terms of the framework agreement were expanded to up to $250 million deposits. The terms and conditions of the deposits, including the interest
rate, was determined on the date of the deposits.
|
(4) |
In December 2017, the Company, Oil Refineries Ltd. (a public company controlled by Israel Corp.) and OPC Energy Ltd. (a public
company that is controlled indirectly by one of the Company’s controlling shareholders) signed individual agreements with Energean PLC for the supply of natural gas. Under the agreement between the Company and Energean, the
Company will be entitled to acquire up to 13 BCM of natural gas over a period of 15 years, in the total amount of about $1.8 billion. For further information see Note 18.
|
(5) |
In October 2020, the Company and Oil Refineries Ltd. signed individual bridge supply agreements with Tamar Reservoir for the supply of natural gas, following a process of joint
negotiations with the supplier and the approval of ICL's general meeting of shareholders. For further information see Note 18.
|
As at December 31
|
||
2020
|
2019
|
|
$ millions
|
$ millions
|
Other current assets
|
35
|
27
|
Other current liabilities
|
2
|
2
|
Ownership interest in its subsidiary and investee companies for the year ended December 31
|
|||
Name of company
|
Principal location of the company’s activity
|
2020
|
2019
|
ICL Israel Ltd.
|
Israel
|
100.00%
|
100.00%
|
Dead Sea Works Ltd.
|
Israel
|
100.00%
|
100.00%
|
Dead Sea Bromine Company Ltd.
|
Israel
|
100.00%
|
100.00%
|
Rotem Amfert Negev Ltd.
|
Israel
|
100.00%
|
100.00%
|
Mifalei Tovala Ltd.
|
Israel
|
100.00%
|
100.00%
|
Dead Sea Magnesium Ltd.
|
Israel
|
100.00%
|
100.00%
|
Bromine Compounds Ltd.
|
Israel
|
100.00%
|
100.00%
|
Fertilizers and Chemicals Ltd.
|
Israel
|
100.00%
|
100.00%
|
Iberpotash S.A.
|
Spain
|
100.00%
|
100.00%
|
Fuentes Fertilizantes S.L.
|
Spain
|
100.00%
|
100.00%
|
ICL Europe Coöperatief U.A.
|
The Netherlands
|
100.00%
|
100.00%
|
ICL Europe B.V.
|
The Netherlands
|
100.00%
|
100.00%
|
ICL IP Terneuzen B.V.
|
The Netherlands
|
100.00%
|
100.00%
|
ICL Finance B.V.
|
The Netherlands
|
100.00%
|
100.00%
|
Everris International B.V.
|
The Netherlands
|
100.00%
|
100.00%
|
ICL Puriphos B.V.
|
The Netherlands
|
100.00%
|
100.00%
|
ICL-IP America Inc.
|
United States of America
|
100.00%
|
100.00%
|
ICL Specialty Products Inc.
|
United States of America
|
100.00%
|
100.00%
|
Everris NA, Inc.
|
United States of America
|
100.00%
|
100.00%
|
Growers Holdings, Inc.
|
United States of America
|
100.00%
|
100.00%
|
BK Giulini GmbH
|
Germany
|
100.00%
|
100.00%
|
ICL Holding Germany GmbH
|
Germany
|
100.00%
|
100.00%
|
ICL Bitterfeld GmbH
|
Germany
|
100.00%
|
100.00%
|
Prolactal GmbH
|
Austria
|
100.00%
|
100.00%
|
Cleveland Potash Ltd.
|
United Kingdom
|
100.00%
|
100.00%
|
Everris Ltd.
|
United Kingdom
|
100.00%
|
100.00%
|
ICL Brasil, Ltda.
|
Brazil
|
100.00%
|
100.00%
|
ICL Investment Co. Ltd.
|
China
|
100.00%
|
100.00%
|
Yunnan Phosphate Haikou Co. Ltd.
|
China
|
50.00%
|
50.00%
|
ICL Asia Ltd.
|
Hong Kong
|
100.00%
|
100.00%
|
ICL Trading (HK) Ltd.
|
Hong Kong
|
100.00%
|
100.00%
|
Scora S.A.S., France
|
France
|
100.00%
|
100.00%
|