ICL Provides Updates on Chinese Potash Agreement and 2023 EBITDA Guidance

ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today announced an update to its 2022 to 2024 framework agreement with its customers in China. The company has agreed to supply those customers with an aggregate amount of 800,000 metric tons of potash during 2023, with mutual options for an additional 350,000 tons. The agreed upon price is $307 per ton, which aligns with recent contract settlements.

Due to the lower-than-anticipated potash price, ICL expects to see a negative impact to its 2023 EBITDA guidance of approximately $400 million. In addition, a recovery in demand for flame retardants, which was expected in the second half of the year, has not yet begun to materialize. If a recovery is delayed until the end of 2023, it could result in a further reduction of approximately $200 million in EBITDA guidance for the year. The company reiterated it is on track with regard to its five-year plan and does not expect these developments to have a material impact on its execution.

About ICL

ICL Group is a leading global specialty minerals company, which creates impactful solutions for humanity's sustainability challenges in the food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its global professional workforce, and its sustainability focused R&D and technological innovation capabilities, to drive the company's growth across its end markets. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs more than 12,500 people worldwide, and its 2022 revenues totaled approximately $10 billion.

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Guidance

The company only provides guidance on a non-GAAP basis. The company does not provide a reconciliation of forward-looking adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting, and quantifying certain amounts that are necessary for such reconciliation, in particular, because special items such as restructuring, litigation, and other matters, used to calculate projected net income (loss) vary dramatically based on actual events, the company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material, and therefore could result in projected GAAP net income (loss) being materially less than projected adjusted EBITDA (non-GAAP). The guidance speaks only as of the date hereof. We undertake no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. Specialties focused businesses are represented by the Industrial Products, and Growing Solutions segments, and the specialties part of the Phosphate Solutions segment. We present EBITDA from the phosphate specialties part of the Phosphate Solutions segment as we believe this information is useful to investors in reflecting the specialty portion of our business.