Q1 2024 ICL Group Ltd Earnings Call

<unk> impact for a sustainable future.

[music].

Paul will begin shortly.

Impact for a sustainable future.

[music].

Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to the ICL Analyst Conference call. Our presentation today will be followed by question.

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the ICL Analyst Conference Call. Our presentation today will be followed by a question and answer session, at which time, if you wish to ask a question, you'll need to raise your hand using your mobile or desktop application or press star 9 on your telephone keypad and wait for your name to be announced. I must advise you that this call is being recorded today. I'd like to hand the call over to our first speaker today, Peggy Riley-Tharp, Vice President of Global Investor Relations. Please go ahead now.

Speaker Change: Question and answer session at which time, if you wish to ask question will need to raise your hand, using your mobile or desktop application Darden I on your telephone keypad and wait for your name to be announced.

Speaker Change: I must advise you that this call is being recorded today I'd like to hand, the call over to our first speaker today.

Speaker Change: He Reilly Tharp, Vice President of Global Investor Relations.

Peggy Reilly Tharp: Please go ahead ma'am.

Speaker Change: This meeting is being recorded Q Hello, everyone I'm, Peggy Reilly Tharp, Vice President of Global Investor Relations.

Peggy Reilly Tharp: This meeting is being recorded. I'd like to welcome you and thank you for joining us today for our quarterly earnings call. The event is being webcast live on our website at icl-group.com. Earlier today, we filed our reports with the securities authorities and the stock exchanges in the U.S. and Israel. Those reports, as well as the press release, are available on our website. There will be a replay of the webcast available after the meeting, and a transcript will be available shortly thereafter.

Speaker Change: To welcome you and thank you for joining us today for our quarterly earnings call. The event is being webcast live on our website at ICL dashed group dotcom.

Speaker Change: Earlier today, we filed our reports with the securities authorities and the stock exchanges in the U S and in Israel.

Speaker Change: These reports as well as the press release are available on our website.

Speaker Change: There will be a replay of the webcast available after the meeting and a transcript will be available shortly thereafter.

Peggy Reilly Tharp: The presentation, which will be reviewed today, was also filed with the securities authorities and is available on our website. Please be sure to review the disclaimer on slide 2. Our comments today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are not guarantees of future performance. The company undertakes no obligation to update any financial information discussed on this call at any time. We will begin with a presentation by our CEO, Mr. Raviv Zoller, followed by Mr. Aviram Lahav, our CFO. Following the presentation, we will open the line for the Q&A session. Raviv, please.

Speaker Change: The presentation, which will be reviewed today. We've also filed with the securities authorities and is available on our website. Please be sure to review the disclaimer on slide two our comments today will contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095.

Speaker Change: These statements are based on management's current expectations and are not guarantees of future performance. The company undertakes no obligation to update any financial information discussed on this call at any time.

Speaker Change: We will begin with a presentation by our CEO Mr. Raviv Zoller, followed by Mr. Javier and I'm Gonna have our CFO.

Speaker Change: Following the presentation, we will open the line for the Q&A session Raviv. Please.

Raviv Zoller: Thanks, Peggy, and welcome, everyone. Similar to the recent quarter, I would like to provide a brief update on the situation in Israel. While there are still challenges caused by the war, we have continued to minimize disruptions to our business operations and to our employees. While various operational challenges related to the war have persisted, including higher logistics costs, we've been able to maintain good production levels, thanks in part to the return of most of our employees who have been called up for reserve duty.

Raviv Zoller: Thanks, Becky and welcome everyone.

Raviv Zoller: Similar to the recent quarter I would like to provide a brief update on the situation in Israel. While there are still challenges caused by the war, we are continuing to minimize disruptions to our business operations and for our employees.

Raviv Zoller: While various operational challenges related to the word persisted, including higher logistics costs, we've been able to maintain good production levels. Thanks in part to the return most of our employees rather than called up for reserve duty.

Raviv Zoller: Despite these unique challenges, we were able to execute according to plan in the first quarter, resulting in a good start to 2020. For the first quarter, ICL delivered solid sequential improvement as global demand appears to have stabilized, and as most of the multiple end markets we served have begun to show signs of recovery. While there are some exceptions based on location and other factors, gradual improvement should start becoming apparent in the various channels we search on.

Raviv Zoller: Despite these challenges we were able to execute according to plan in the first quarter, resulting in a good start to 2020.

Raviv Zoller: For the first quarter ICL delivered solid sequential improvement as global demand appears to have stabilized and as most of the multiple end markets. We serve has begun to show signs of recovery.

Raviv Zoller: While there are some exceptions based on location and other factors gradual improvement should start becoming apparent in the various channels we serve.

Raviv Zoller: So as we've said in the past, we will be agile work to effectively manage the areas under our control and react with appropriate swiftness when necessary.

Raviv Zoller: So, as we've said in the past, we will be agile and work to effectively manage the areas under our control and react with appropriate swiftness when necessary. Now, if you will please turn to slide three for a brief overview of the first.

Raviv Zoller: Now if you'll please turn to slide three for a brief overview of the first quarter.

Raviv Zoller: Sailed to $1,735 million and adjusted EBADs $362 million, both showing quarter over quarter improvement, although down versus the prior year. For the first quarter, we delivered nine cents of adjusted earnings per share and will distribute a dividend of about five cents. It is a long-standing policy to pay out up to 50% of adjusted net income each quarter. We continue to focus on cash flow and generated operating cash flow of nearly $280 million in the first quarter, with free cash flow of more than $130 million.

Raviv Zoller: Sales of $1 billion to $735 million in <unk>.

Raviv Zoller: Adjusted EBITDA of $362 million, both showed quarter over quarter improvement, although down versus the prior year as expected.

Raviv Zoller: For the first quarter, we delivered nine of adjusted earnings per share it will distribute a dividend of about <unk> <unk> per share.

Raviv Zoller: Our long standing policy is to payout up to 50% of adjusted net income each quarter.

Raviv Zoller: We continue to focus on cash flow and generated operating cash flow of nearly $280 million in the first quarter with free cash flow of more than $130 million.

Raviv Zoller: We continue to carry out efficiency efforts in the first quarter and manage through some logistics changes. Aviram will discuss our efficiency and cost savings initiatives in more detail later in the call, but our commitment to these efforts has not dimmed our focus on innovation.

Raviv Zoller: We continued to carry out efficiency efforts in the first quarter and manage through some logistics challenges.

Raviv Zoller: Ron will discuss our efficiency and cost savings initiatives in more detail later in the call, but our commitment to these efforts is not into our focus on innovation.

Raviv Zoller: We continue to expand our specialties product portfolio both through the launch of innovative new products and via an acquisition. The first. I would ask you to turn now to slide four and to look at recent trends for some key financial measures. While first quarter sales were down, as expected, they were up 3% sequentially. Adjusted EBITDA also improved on a sequential basis, while earnings per share were slightly down for the same time period.

Raviv Zoller: We continue to expand our specialties product portfolio, both through the launch of innovative new products and <unk> acquisition in the first quarter I would ask you to turn now to slide four and look at recent trends for some key financial metrics.

Raviv Zoller: While first quarter sales were down as expected they were up 3% sequentially.

Raviv Zoller: Adjusted EBITDA also improved on a sequential basis, while earnings per share were slightly down for the same timeframe.

Raviv Zoller: Our consistent focus on increasing the contribution from our specialty driven businesses resulted in sequential improvement based on volume. First quarter specialty driven sales were up 6% versus the fourth quarter of 2023. Well, EBITDA improved approximately 17% in the quarter. Our specialties-driven divisions also delivered quarterly sequential improvement in gross margin, a trend that began in the third quarter of 2020. Let's start with a review of our divisions and begin with industrial products on slide five. For the first quarter of 2024, sales were $335 million, with EBITDA of $72 million.

Raviv Zoller: Our consistent focus on increasing the contribution from our specialty driven businesses resulted in sequential improvement based on volume growth.

Raviv Zoller: First quarter specialties, driven sales were up 6% versus the fourth quarter of 2023, while EBITDA improved approximately 17% quarter over quarter.

Raviv Zoller: Our specialty is driven divisions also delivered a quarterly sequential improvement in gross margin the trend that began in the third quarter of 2023.

Raviv Zoller: Let's start with a review of our divisions and begin with industrial products on slide five.

Raviv Zoller: For the first quarter of 2024 sales were $335 million with EBITDA of $72 million.

Raviv Zoller: As expected, sales in EBITDA have improved sequentially since the third quarter of last year. For the first quarter of 2024, sales were up approximately 12% sequentially, while EBITDA was up nearly 30% on higher volume. Overall, we were able to gain market share and maintain key customer accounts while continuing to drive contribution from cost savings and efficiency. For our key end markets, demand was mixed as softness continued in electronics and in building and construction.

Raviv Zoller: As expected sales and EBITDA have improved sequentially since the third quarter of last year.

Raviv Zoller: For the first quarter of 2024 sales were up approximately 12% sequentially, while EBITDA was up nearly 30% on higher costs.

Raviv Zoller: Overall, we were able to gain market share and maintain key customer accounts, while continuing to drive contribution from cost savings and efficiency efforts.

Raviv Zoller: For our key end markets demand was mixed as softness continued in electronics and in building and construction.

Raviv Zoller: Flame retardant sales increased versus the prior year, as higher volumes for our brominated solutions were partly offset by declining volumes for phosphorus-based products and lower prices overall. In early April, we received news that the EU Commission had imposed anti-dumping measures on phosphorus-based imports from China, and in late April, a similar petition was filed in the U.S. Global demand for clear brine fluids, which are used by the oil and gas industry, was stable in the first quarter, and ICL remained the preferred supplier for the industry.

Raviv Zoller: Let me start with sales increased versus the prior year as higher volumes for our bromine Aten solutions were partly offset by a decline in volumes for phosphorus based products and lower prices overall.

Raviv Zoller: In early April we received news that the EU Commission had imposed antidumping measures on phosphorus based imports from China and in late April a similar petition was filed in the U S.

Raviv Zoller: Global demand for clear brine fluids, which are used by the oil and gas industry was stable in the first quarter and ICL remained the preferred supplier for Dms.

Raviv Zoller: On a year-over-year basis, sales were lower due to a peak market in the beginning of 2020. However, our specialty minerals business, which targets food, pharma, and other end markets, continues to perform well, with sequential quarterly improvements. On slide six, you will see our PODASH results for the first quarter of 2024, with sales of $423 million and EBITDA of $124 million. In the first quarter, we completed the annual maintenance at the Dead Sea.

Raviv Zoller: On a year over year basis sales were lower due to a peak market in the beginning of 2023 or.

Raviv Zoller: Our specialty minerals business, which targets food pharma and other end markets continued to perform well with sequential quarterly improvement on.

Raviv Zoller: On slide six you will see our <unk> results for the first quarter of 2024 with sales of $423 million and EBITDA of $124 million.

Raviv Zoller: In the first quarter, we completed the annual maintenance at the dead Sea and in Spain, We delivered record production at our Soya mine and remained on track to meet our full year targets.

Raviv Zoller: And in Spain, we delivered record production at our Soria mine and remained on track to meet our full year target. One key commonality between both locations was the use of technology to optimize operations and improve production and safety, as both facilities continue to focus on efficiency and cost savings. Total sales volume for the quarter was nearly 1.1 million tons, up more than 120,000 tons year over year but down approximately 100,000 tons sequentially, as expected due to the annual seasonality. The average foot ash price declined in the first quarter to $324 per ton, down approximately 40% year-over-year and 6% sequentially.

Raviv Zoller: One key commonality in both locations was the use of technology to optimize operations and improved production and safety as both facilities continue to focus on efficiency and cost savings efforts.

Raviv Zoller: <unk> sales volume for the quarter was nearly $1 1 million tons up more than 120000 tons year over year, but down approximately 100000 tons sequentially as expected due to the annual maintenance.

Raviv Zoller: Additionally, freight costs increased as global shipping remained in the, The global demand for put outs is truly robust, and prices have stabilized since the beginning of 2024. The outlook is generally positive, with farmer affordability still healthy as high levels of potassium deficiency in soil have become a clear threat to yields for growers in most regions. Turning to slide seven and our phosphate solutions division, where first quarter sales of $559 million improved sequentially, well, even though it was down slightly for the same time, Vib volumes were higher in the first quarter, and prices remained relatively stable, both on a sequential basis.

Raviv Zoller: The average price decline in the first quarter to $324 per tonne down approximately 40% year over year and 6% sequentially. Additionally, freight cost increased and global shipping remained under pressure.

Raviv Zoller: The global demand for put assets truly robust and prices have stabilized since the beginning of 2024.

Raviv Zoller: The outlook is generally positive with farmer affordability is still healthy and high levels of potassium deficiency in the soil have become a clear threat to yields for growers in most regions.

Speaker Change: Turning to slide seven.

Raviv Zoller: Our phosphate solutions division, where first quarter sales of $559 million improved sequentially, while EBITDA was down slightly for the same timeframe.

Raviv Zoller: Volumes were higher in the first quarter and prices remained relatively stable both on a sequential basis in.

Raviv Zoller: In the first quarter, phosphate prices were at a crossroads, and supply dynamics are expected to influence futures. For our phosphate specialties business, lower raw material costs were offset by lower sales prices and mixed demand across end markets and regions. In the first quarter, our YPH joint venture in China continued to deliver strong results and set production records for both food grade WPA and for MAP73, which is used for capital material production.

Raviv Zoller: In the first quarter phosphate prices were at a crossroad and supply dynamics are expected to influence future quarters.

Raviv Zoller: For our phosphate specialties business lower raw material costs were offset by lower sales prices and mixed demand across end markets and regions.

Raviv Zoller: In the first quarter, our white ph joint venture in China continued to deliver strong results and set production records for both food grade Wpa and $4 73, which is used for cathode material production.

Raviv Zoller: Turning to slide eight, in our growing solutions business, where first quarter 2024 sales of $479 million will be roughly flat sequentially, EBITDA of $42 million improved significantly on a sequential basis with an improved product. Efficiency efforts have continued to advance in the first quarter, even as the team navigated logistics and weather challenges. Regionally, North American sales improved year over year on higher volumes, while sales in Asia improved sequentially on higher prices. For Brazil and Europe, the start of the year was a little slower than expected in both. First quarter sales in Brazil decreased versus the prior year, but product optimization helped deliver high growth.

Raviv Zoller: Turning to slide eight and our growing solutions business, where first quarter 2024 sales of $479 million.

Raviv Zoller: We're roughly flat sequentially.

Raviv Zoller: EBITDA of $42 million improved significantly on a sequential basis with an improved product mix.

Raviv Zoller: Efficiency efforts have continued to advance in the first quarter, even as the team navigated logistics and weather challenges.

Raviv Zoller: Regionally North American sales improved year over year on higher volumes, while sales in Asia improved sequentially on higher prices.

Raviv Zoller: For Brazil in Europe, the start of the year was a little slower than expected in both markets.

Raviv Zoller: First quarter sales in Brazil decreased versus the prior year, but product optimization to help deliver higher gross margin.

Raviv Zoller: For Europe, a significant increase in volumes was offset by lower prices and higher logistics costs, as weather conditions on the continent were less than ideal across key growing regions. Changing legislation and farm protests were additional obstacles during.

Raviv Zoller: For Europe, a significant increase in volumes was offset by lower prices and higher logistics costs as weather conditions on the continent were less than ideal across key growing regions.

Raviv Zoller: Changing legislation and farmer protest, where additional obstacles during the quarter.

Raviv Zoller: Before we move on from Global Solutions, I would like to highlight a recent change in leadership. Gustavo Vazquez, who has ably led our Brazilian business since 2021, has been nominated as the head of our European business. This move attests to the successful integration of our Brazilian acquisitions and the ongoing potential for additional synergies to continue to drive. Speaking of Brazil, if you will turn to slide nine, I would like to review a few quarterly highlights, including the accreditation of our third Plant Nutrition Innovation Center in that country.

Speaker Change: Before we move on from growing solutions I would like to highlight a recent change in leadership.

Speaker Change: Gustavo basket with ably Helmed, our Brazilian business since 2021 has been nominated as the head of our European business.

Speaker Change: This move a test for the successful integration of our Brazilian acquisitions, and the ongoing potential for additional synergies to continue to drive growth.

Speaker Change: Speaking of Brazil, If you will turn to slide nine I would like to review a few quarterly highlights, including the accreditation of our third plant nutrition innovation center in the country.

Raviv Zoller: This endorsement by the Ministry of Agriculture, Livestock, and Supply will benefit ICO as it develops, registers, and launches innovative technologies for the national and international agricultural markets. It will also be used to obtain registrations for new fertilizers, biofertilizers, and inoculants, among others. Also in Brazil, we announced the acquisition of Nitro 1000 in late February, and the acquisition of this manufacturer, developer, and provider of biologicals marks another meaningful step into the biologicals market. It also helps expand our product offerings and positions us for further expansions into new and adjacent end markets. In North America, our battery materials expansion is gaining momentum.

Speaker Change: This endorsement by the Ministry of Agriculture, livestock supply will benefit Ico as we develop register and launch innovative technologies for the National and international agricultural markets.

Speaker Change: It will also be used to obtain registrations for new fertilizers, <unk> and inoculum among others.

Speaker Change: Also in Brazil, We announced the acquisition of 91000 in late February and the acquisition of this manufacturer developer and provider of Biologicals marks another meaningful step into the biologicals market.

Speaker Change: It also helps expand our product offerings and to position us for further expansions into new and adjacent end markets.

Speaker Change: In North America, our battery materials expansion is gaining momentum.

Aviram Lahav: We recently signed three new MOUs, and our Customer Innovation and Qualification Center in St. Louis is expected to be commissioned by year-end. Accelerating the Customer Innovation and Qualification Center is our first priority, as it will allow us to take advantage of technological innovations with our business partners. This will influence both future costs and product performance for our overall business plan, including for our first commercial scale plan. While this will extend the project timeframe, it will also result in long-term benefits to our competitive position, which is aimed at achieving LSP leadership in North America.

Speaker Change: We recently signed three new <unk>, and our customer innovation and qualification center in St. Louis is expected to be commissioned by year end the acceleration of the customer innovation and qualification center is our first priority as it will allow us to take advantage of technological innovations with our business partners.

Speaker Change: It will influence both future cost and product performance for our overall business plan, including for our first commercial scale plants. While this will extend the project timeframe. It will also result in long term benefits to our competitive position, which is aimed at achieving LSP leadership in North America.

Aviram Lahav: On the sustainability front, we improved our sustainability risk rating. We also received an upgrade from CDP, with our climate change rating improving to a line. Additionally, we repositioned our pro-lactose dairy protein. As we focused on efficiency efforts, it clearly made sense to carve Forlactal, a non-phosphate-related business, out of the Phosphate Solutions Division, especially as our battery materials aspirations continue to expand. This will allow the division to focus on building its battery materials business, which is part of the phosphate value chain, while also allowing products out to get the attention to the desert.

Speaker Change: On the sustainability front, we improved our sustained Olympics ESG risk rating. We also received an upgrade from CDP with our climate change really improving to eight months.

Speaker Change: Additionally, we repositioned our product our dairy protein business.

Speaker Change: As we focused on efficiency efforts. It clearly makes sense to carve a non phosphate related business out of the phosphate solutions division, especially as our battery materials aspirations continued to advance.

Speaker Change: This will allow the division to focus on building its battery materials business, which is core to the phosphate value chain, while also allowing <unk> to get the attention it deserves.

Aviram Lahav: With this change, Broughtell's new leadership is focused on aligning strategy with current market conditions and optimizing operations. I would also like to point out that the ICL Innovation Accelerate, which is creating significant value for our shareholders, was recently featured in a Harvard Business School case published earlier this week. Finally, as I do every quarter, I want to thank the entire ICL family of employees all around the world for their hard work, dedication, and support. And with that, I would now like to turn the call over to everyone. Thank you, Raviv, and to

Speaker Change: With this change protocols, new leadership is focused on alignment strategy with current market conditions and optimizing operations I.

Speaker Change: I would also like to point out that the ICL innovation accelerating that is creating significant value for our shareholders was recently featured in a Harvard business School case published earlier. This week finally as I do every quarter I want to thank the entire ICL family of employees all around the world.

Speaker Change: For their hard work dedication and support.

Speaker Change: And with that I would now like to turn the call over to <unk>.

Aviram Lahav: Thank you, Raviv, and to all of you for joining us today. Let us get started on slide 11 with the external macro environment. While some of these metrics have moderated slightly and others are unchanged, there has been a steady uptick in geopolitical tensions. Nevertheless, experts and pundits still anticipate the global outlook to begin improving in the second half of 2024. As Raviv mentioned earlier, global demand appears to have stabilized, and most of the end markets we serve have begun to show signs of recovery. Turning to slide 12.

Speaker Change: Thank you Raviv and to all of you for joining us today.

Speaker Change: That does it get started on slide 11, with the external macro environment. While some of these metrics have moderated slightly in other unchanged. There has been a steady uptake in geopolitical tensions regardless extra doesn't pandit still anticipate the global outlook to begin improving in the second half.

Speaker Change: Of 2024.

Speaker Change: As Rajeev mentioned earlier global demand appears to stabilize and most of the end markets. We serve have begun to show signs of recovery.

Aviram Lahav: Inflation remains stable, as did interest rates. While housing stocks in the U.S. declined in the first quarter, global industrial production is expected to improve as the year progresses. On slide 13, you can see a slight decline in most grain prices with the exception, once again, of rice. Farmer sentiment is generally stable, and prices for potash and phosphate appear to have stabilized.

Aviram Lahav: Turning to slide 12, and inflation remains stable and net interest rates, while housing starts in the U S declined in the first quarter global industrial production is expected to improve as the year progresses.

On slide 13, you can see a slight decline in most grain prices with the exception once again of rice farmer sentiment and generally stable and prices for potash and phosphate appeared with turbidite freight rates have also stabilized, albeit at an elevated level.

Aviram Lahav: Break rates have also stabilized, albeit at an elevated level. On slide 14, you can see the expected trend over roughly the next decade for not only electric vehicles but also for energy storage. In North America, the demand for cathode-active materials used in both of these products is expected to become nearly equivalent by 2030.

Aviram Lahav: On slide 14, you can see the expected trend over roughly the next decade I'll not only electric vehicles, but also for energy storage.

Aviram Lahav: In North America, the demand for cathode active materials using both of these products is expected to become nearly equivalent by 2030. This trend is expected to result in gradually increasing demand for white phosphoric acid technical MEP and for global NSP. If you will now turn to slide 15.

Aviram Lahav: This trend is expected to result in gradually increasing demand for white phosphoric acid, technical MAP, and for global LFP. Now, you will turn to slide 15 and our first quarter sales bridge. On the left side, you can see the decline for each of our segments versus the first quarter of 2023, resulting in first quarter of 2024 sales of 1.7 billion dollars. Turning to the right side of the slide, you can see a year-over-year increase in quantities, which was offset by lower prices, especially for potters. On a quarterly sequential basis, sales increased as higher quantities offset lower prices.

Aviram Lahav: <unk> in our first quarter sales bridges on the left side you can see the decline for each of our segments. Thus in the first quarter of 2023, resulting in third quarter of 2020 bulk sales of $1 7 billion.

Aviram Lahav: Turning to the right side of the slide you can see a year over year increase in quantities, which was offset by lower prices, especially for potash on.

Aviram Lahav: On a quarterly sequential basis sales increased as higher quantities offset lower prices.

Aviram Lahav: For the first quarter, we saw general improvement in our inventory position in line with internal targets. On slide 16, you can see the impact of Potash head on our first quarter of $362 million, and this is evident on both the left and right-hand sides of the slide. Conversely, we benefited from higher quantities, low raw material and energy costs, and also from our cost savings and efficiency programs. While the year-over-year impact on transportation costs looks roughly flat on the slide, this amount excludes approximately $8 million related to the war in Israel.

Aviram Lahav: While the first quarter, we saw general improvement in our inventory position in line within southern targets on Slide 16, you can see the impact potash head on our first quarter of 2020 full EBITDA of 362 million.

Aviram Lahav: And this is evident on both the left and right hand side of the slide Conversely, we benefited from higher quantities lower raw material and energy costs and also from a cost savings and efficiency programs, while the year over year impact from transportation costs look roughly flat on the slide this amount excludes <unk>.

Aviram Lahav: Proximate to $8 million related to the Warren Israel once again, even as potash prices declined during the first quarter ICL remained a leader in terms of average realized price as you can see on slide 17, we continue to maintain that flexibility allows us to rapidly shift in and out of market.

Aviram Lahav: Once again, even as potash prices declined during the first quarter, ICL remained a leader in terms of average realized price, as you can see on slide 17. We continue to maintain the flexibility that allows us to rapidly shift in and out of markets based on profitability and maximize our cost-efficient resources. I would also like to remind everyone where ICL is positioned in the global bromine market, which you can see on slide 18. DECI is the premier and most cost-competitive source of bromine and accounts for approximately two-thirds of global supply capacity.

Aviram Lahav: Based on profitability and to maximize our cost efficient resources.

Aviram Lahav: Also like to remind everyone. While ICL is positioned in the global bromine market, which you can see on slide 18. The dead Sea is the premier and most cost competitive source of bromine and a cost of approximately two third of global supply capacity for the first quarter, we reduced SG&A by approximately 5%.

Aviram Lahav: For the first quarter, we reduced SG&A by approximately 5% quarter over quarter, as you can see on slide 19. We also remained focused on our savings and efficiency efforts, and these actions included supply chain and production initiatives in the industrial products division, mining optimization, and technology efforts in our pottery division, labor costs, as well as supply chain optimization in the phosphate solutions and growing solutions divisions. The cost efficiency efforts helped in part to drive our effective cash conversion, and we ended the quarter with available resources of approximately $1.7 billion.

Aviram Lahav: Quarter over quarter as you can see on slide 19, we also remained focused on our savings and efficiency efforts and these actions, including supply chain and production initiative in the industrial products Division mining optimization, and technology efforts, and our potash division and labor costs as well as supply chain optimization.

Aviram Lahav: Innovation in the phosphate solutions and growing solutions divisions.

Aviram Lahav: Cost efficiency efforts <unk> path to drive our effective cash conversion and we ended the quarter with available resources of approximately $1 7 billion, our net debt to adjusted EBITDA rate at quarter end was one three times in March we repaid approximately $108 million.

Aviram Lahav: Our net debt to adjusted EBITDA rate at quarter end was 1.3 times. In March, we repaid approximately $108 million of our Series E bonds as scheduled, which resulted in an increase in cash used for financing activities. In June, we will pay out $59 million as a dividend to our shareholders, bringing our trailing 12-month dividend yield to approximately 4%. For the first quarter, our effective tax rate was 25%. This was lower year over year due to a lower surplus profit levy and as we have increased profits in regions with lower effective tax rates.

Aviram Lahav: Our series E bonds as scheduled which resulted in an increase in cash used for financing activities in June we will pay out $59 million.

Aviram Lahav: A dividend to our shareholders, bringing our trailing 12 month dividend yield to approximately 4% for the first quarter. Our effective tax rate was 25%. This was lower year over year due to a lower of surplus profit and EV and as we have increased profits in regions with lower.

Aviram Lahav: Effective tax rates. Additionally, as Rajeev mentioned in the first quarter, we called the product our dairy protein business out of the phosphate solution business financials for Brookdale can now be found in other activities and we have restated historical results reflect this change.

Aviram Lahav: Additionally, as Raviv mentioned, in the first quarter, we carved the product and dairy protein business out of the phosphate solution business. Financials for Proactal can now be found in other activities, and we've restated historical results to reflect this change. Finally, if you will turn to slide 20, I would like to reiterate our 2024 guidance. As we discussed on our fourth quarter call, we will be providing EBITDA guidance for all of our businesses other than potash, which we call our specialty-driven business segments.

Aviram Lahav: This includes industrial products, growing solutions, and all of phosphate solutions. As our PS business is now predominantly specialties focused for 2024, we continue to expect adjusted EBITDA for these three businesses to be between $0.7 billion and $0.9 billion. For our Portage business, we reiterate sales volume guidance for 2024, and we expect this to be between 4.6 million metric tons and 4.9 million metric tons. Additionally, for 2024, we expect our effective tax rate to be approximately 30%. And with that, we can begin the Q&A.

Aviram Lahav: Finally, if you would turn to slide 20, I would like to reiterate our 2020 full guidance.

Aviram Lahav: As we discussed on our fourth quarter call, we will be providing EBITDA guidance for all of our businesses other than potash, which we call our specialty driven business segments. This includes industrial products <unk> solutions and order of phosphate solutions.

Aviram Lahav: Our PFS business is now predominantly specialty is focused for 2024, we continue to expect adjusted EBITDA for these three businesses to be between $7 billion to $9 billion.

Aviram Lahav: While our potash business, we reiterate.

Aviram Lahav: <unk> volume guidance for 2024, and we expect this to be between $4 6 million metric ton and $4 9 million metric ton for <unk> to 'twenty four we expect our effective tax rate will be approximately 30% and with that we can begin the Q&A.

Speaker Change: Thank you in order to ask a question raise your hand, using your mobile or desktop application and wait for your name to be Enel. Once again. Please raise your hand, using your mobile or desktop application and wait for your name to be announced.

Operator: Thank you. In order to ask a question, please raise your hand using your mobile or desktop application and wait for your name to be announced. Once again, please raise your hand using your mobile or desktop application and wait for your name to be announced. Our first question today will come from Ben Theurer of Barclays. Please go ahead.

Benjamin M. Theurer: Our first question today will come from the line of Ben fewer Barclays. Please go ahead.

Benjamin M. Theurer: Yeah, good afternoon, good morning, and thank you very much for taking my question. So, actually, two questions.

Benjamin M. Theurer: Yes good.

Benjamin M. Theurer: Afternoon, and good morning, and thank you very much for taking my question. So.

Benjamin M. Theurer: Two questions actually so the first is you had a very good start within your specialty driven businesses right. If we take a look just at these three and you've just reiterated that potash not being part of that it was almost $250 million and EBITDA, just in the first quarter, which which sometimes seasonality wise.

Benjamin M. Theurer: B the strongest ones. So just wanted to understand within your expectations of the 700 to 900 million for that segment, having had such a good start what are the risks youre seeing.

Aviram Lahav: So, the first is, you had a very good start within your specialty-driven businesses, right? If we take a look just at these three, and you've just reiterated that, PotashNet being part of it, it was almost $250 million in EBITDA just in the first quarter, which sometimes seasonality-wise wouldn't be the strongest one. So, I just wanted to understand, within your expectations of $700 to $900 million for that segment, having had such a good start, what are the risks you're seeing of that, sequentially throughout the year, kind of slowing down? Because otherwise, we wouldn't even get to $700 to $900 million. We would actually be run-rate-wise higher. So, I wanted to understand that. That would be my first question, and I have a quick follow-up.

Aviram Lahav: Of that sequentially throughout the year to kind of slow down because otherwise we wouldn't even get to the $700 million to $900 million would actually be run rate wise higher so wanted to understand that that would be my first question and then I have a quick follow up.

Aviram Lahav: Hi Ben, thanks for your question. Basically, we started here in good fashion, and obviously, the probability that we end up at the lower end looks quite low at this time. But at the same time, as you know, our country is currently at war, and, you know, the world is sort of turbulent, so I think we want to take a conservative position. I think the general direction in the world right now. Our industrial products division is positive moving forward, and we expect price increases and accretion in the near future. Put-ash, you probably know as well as we do, so there's uncertainty there, but that has nothing to do with your question.

Aviram Lahav: Ben Thanks for your question.

Speaker Change: Basically yes.

Aviram Lahav: We started the year in good fashion and obviously.

Aviram Lahav: The probability that we ended up at the lower end looks quite low at this time, but at the same time as you know our country is.

Aviram Lahav: Currently at war.

Aviram Lahav: The world is sort of turbulent so I think we want to take a conservative position.

Aviram Lahav: The general direction now.

Aviram Lahav: Our industrial products Division.

Aviram Lahav: Positive on moving forward and we expect.

Aviram Lahav: Price increase in.

Aviram Lahav: Accretion in.

Aviram Lahav: In the near future I put as you probably know as well as we do so there is the uncertainty there, but that has nothing to do with.

Aviram Lahav: Just in general, with the turbulence in the world, we want to take a conservative view, and that's where we are. Do you want to add anything moving on? Yes, please.

Aviram Lahav: Maybe one thing, Ben, so well, hi. What I want to add is the question mark around the behavior of phosphate during this year. We started the year on a very good note on both the specialty side, or basically, especially and especially driven. Basically, all our phosphate business started on a very high note. What we're seeing is a little bit of moderation in the price of the commodity side. The specialty sites prices are better because, as we've talked about this before, there is some attrition in prices, but it was significantly less than we anticipated.

Aviram Lahav: And the commodity had a very good run late last year and in the first quarter, and we are not that certain about its continuation or how it will behave. So, begging on to, taking along what Rabif said, we'll probably be within the range of being a better place, but you know, it's a quarter, and you want to take it with a little bit of, with a pinch of salt, if you might say, and wait for another, at least another one quarter to see what happens.

Aviram Lahav: I want to get the soap in about the continuation how this will behave so begging onto taking along towards a big said, we'll probably within the range being a better place, but you know it's like what and then you want to take it with a little bit of with a pinch of salt if you might.

Aviram Lahav: And wait for another at least another one quarter to see what is that in.

Benjamin M. Theurer: Okay, perfect. And then, as it relates to some of the innovation pipeline and the investments, particularly around just the battery technology and the opportunities you're seeing there. How much of, like, how should we think about your dedication to research and development expenses, right, which I think falls within the broader SG&A, and you've highlighted some of the cost savings? And is it fair to assume that research and development is going to be unaffected by that?

Aviram Lahav: [laughter] perfect and then just coming back as it relates to some of the.

Benjamin M. Theurer: <unk> pipeline and and the investments, particularly around just battery technology and and the opportunities you're seeing there how much of like how should we think about your your dedication to research and development expenses, right, which I think falls within the broader SG&A in pilot.

Benjamin M. Theurer: Some of the cost savings and is it fair to assume that that research and development is going to be unaffected from that.

Raviv Zoller: It's a great question. Our aspiration for battery materials is that we want to be a significant technology player and capture significant market share. And therefore, we are taking the position that our business plan is not about creating a plant with the assistance of the Department of Energy but rather becoming a leading technological player. And the main thing that we're doing with regard to that is setting up our Innovation and Qualification Center so that we can work together with our future customers on qualifying their products.

Speaker Change: Oh, that's a great question, our aspiration on on battery materials or that we want to be a significant technology player and capture significant market share and therefore, we are taking the position our business plan is not about.

Raviv Zoller: Creating a plan with the assistance of department of energy, but rather becoming a leading technological player and the main thing that we're doing with regard to that is we're putting up our innovation qualification center. So that we can work together with our future customers on qualifying their product.

Raviv Zoller: Clearly, the demand, the long-term demand, is out there. And so that center is going to be the basis for a lot of the R&D activity. Some progress has already started. As I mentioned in the past, 80% of the physical part of the LSP material is phosphate, and we are experts in phosphate, and we're already making significant progress in our labs. But in order to be in a position to become a technology-driven growth business plan in North America, we need to expedite the Qualification Center; the overall investment there is between $20 million and $30 million, including operating costs. And that is an effort that we intend to complete in basically no time. We intend to finalize that by the end of this year.

Raviv Zoller: Clearly the demand the longterm demand is out there and and so that center is going to be the the the basis for a lot of the R&D activity. Some has already started as I mentioned in the past 80% of the physical part of the L. S. P. <unk>.

Raviv Zoller: <unk> is phosphate and we are experts on phosphate and we're already making significant progress in our laps, but in order to be in a position to become technology, driven Grove growth business plan and in North America.

Raviv Zoller: We need to expedite Prequalification center of the overall investment there is between $20 million to $30 million 30 million is including the operating costs and that is an effort that we intend to.

Raviv Zoller: Complete and basically no time, we intend to finalize that by the end of this year.

Aviram Lahav: If I can take it, Ravis, with your permission, a little bit further and broaden the question. I think that Ben was referring to R&D, not only in the LFP but generally in the way of the answer: we are fully committed to the R&D efforts. And actually, even if you look at the way we define ourselves, we are a specialty- or specialty-driven company, and the efforts really come from the IP division, in the PS division, and also in the GS division. We'll put a lot of effort into differentiation on the agricultural side. So basically, our commitment to really bring innovation, applicable innovation, has not changed at all. And we are consistent in applying that.

Raviv Zoller: If I if I can take it easy the information that you can get <unk> and brought into question I think that's <unk>, that's only a galaxy, but generally in the mail with the answer is fully committed to gather vehicles and actually even.

Aviram Lahav: If you look at the way, we define ourselves with specialty I'll specialty driven company in the airports. They they really come yeah, I'd be division and the P. S decision and also in the in the G. S Division.

Aviram Lahav: With a lot of that falls into differentiation and geico countryside. So basically committed commitment to really <unk> innovation applicable to education as an updated changed at all in the way of consistent.

Aviram Lahav: <unk>.

Benjamin M. Theurer: Perfect. Thank you very much, Aviram.

Speaker Change: Alright, perfect. Thank you very much for it.

Benjamin M. Theurer: Yeah.

Operator: Thank you. As a reminder, if you wish to ask a question, you'll need to raise your using your mobile or desktop application or press star 9 on your telephone keypad and wait for your name to be announced. Our next question today comes from the line of Alexander Jones, Bank of America. Please go ahead.

Speaker Change: Thank you as a reminder, if you wish to ask a question you'll need.

Operator: Using your mobile or desktop application or <unk> <unk> on your telephone keypad and wait for your name to Vienna.

Alexander Jones: Our next question today comes from the line of Alexander Joan Bank of America. Please go ahead.

Alexander Jones: [noise] great. Thanks, very much for taking my questions. If I can the first following up on E V. As you talked about three new M. O used for the factory materials expansion could you expand a bit on.

Alexander Jones: Great, thanks very much for taking my questions. Two, if I can, the first is following up on EVs. You talked about three new MOUs for the battery materials expansion. Could you expand a bit on those and also give us more detail on when you would expect to convert those into sort of firm contracts or what are the key hurdles to doing so? And then, on the second question, just a quick follow-up on the guidance commentary on the phosphate pricing side. Are you seeing any erosion so far in Q2 or is it more of a concern about what could happen in future quarters but nothing you're seeing on the books so far? Thank you. Okay, thanks.

Alexander Jones: On those and also give us a call detail on when you would expect to come about those and <unk> contracts. So what are the key huddles doing so and then the second question is quite follow up on the guidance commentary on the phosphate pricing sorry are you seeing any erosion, so foreign Q too small of a <unk>.

Alexander Jones: <unk> about what could happen in future culture has been nothing is saying in the books. That's all thank you.

Aviram Lahav: Okay, thanks. On the commodity side, on the eastern side of the globe, we see a certain erosion of prices having to do with Chinese exports that are coming out of China that didn't come out of China in the first quarter. So far, it's been rather limited, but there is potential for additional erosion. There was some start to an erosion in the US. It seems like it's stopped now with the new tax ruling in the US. So right now, we don't see significant erosion, but we have seen some erosion in the second quarter versus the first quarter. If it stays like this, it'll have a marginal effect, but it could continue.

Alexander Jones: Okay. Thanks on the commodity side on the eastern side of the globe, we see a certain erosion of prices having to do with Chinese exports that are coming out of China that didn't come out of China in the first quarter. So far it's been rather limited, but there is <unk>.

Aviram Lahav: <unk> for additional erosion there was some start to an erosion in the U S. It seems like it's stopped now with the new.

Aviram Lahav: With the new tax ruling in in the U S. So right now we don't see significant erosion, but we have seen some erosion in the second quarter versus versus the first word if it stays like this it'll be it'll have a marginal effect, but it could could continue.

Aviram Lahav: And the first question was about them.

Raviv Zoller: The first question was about MOUs. Sorry, and to go back to your question,

Raviv Zoller: Sorry, and to go back to your first question on MOUs, the difference between an offtake agreement and an MOU agreement is basically reaching the qualification of the product for the customer. And as we work on technological innovation, we're working with customers in order to meet future qualifications.

Speaker Change: Sorry, and to go back to your first question on email us.

Raviv Zoller: The difference between an off take agreement in an animal you agreement is basically reaching the qualification of product for the customer and as we work on technology.

Raviv Zoller: <unk> innovation, we're working with customers in order to meet the future future qualification. So it means that some of these are gonna get deferred until we can actually create living sample would come out come out of the qualifications Center I'm one case, we've already signed.

Raviv Zoller: So it means that some of these are going to get deferred until we can actually create living samples that come out of the qualification center. In one case, we've already signed an offtake agreement. We can't afford to sign more than maybe one offtake agreement because basically, most of the product from the first plant is already accounted for. So we need to leave flexibility and not commit too much because once we have qualified product, it'll be for more than just one plant.

Raviv Zoller: And I'll take the agreement, we can't afford to sign more than maybe one offtake agreement because basically most of the product from the first plant is already accounted for so we need to leave flexibility and not commit too much because once we have qualified.

Raviv Zoller: Product it'll be for more than just one more than just one plan.

Raviv Zoller: That explains things. It also means that we're not very concerned about the schedule of the first time that we sell we're more concerned about having a client list and technological capabilities that allow us to qualify various specific patients.

Raviv Zoller: I hope that that explains it. It also means that we're not very concerned about the schedule of the first time that we sell. We're more concerned about having a client list and technological capabilities that allow us to qualify the various specifications of different customers and also use the most advanced technology that's out there.

Raviv Zoller: A different customers and also use the most advanced technology that's out there.

Operator: Thank you. Thank you. Thank you. Our next question today comes from a line by Dan Rizzo from Jeffries. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Thank you.

Dan Rizzo: Thank you. Our next question today comes from a line of Dan Rebel from Jeffries. Please go ahead.

Dan Rizzo: [noise] Hello.

Dan Rizzo: You can hear me.

Dan Rizzo: Thanks for taking my question. You mentioned the ruling in the EU for anti-dumping, and I was wondering in the past how effective rulings like these have been and when you might see a benefit from them within the region.

Dan Rizzo: Yeah, I can tell you.

Dan Rizzo: Yeah. Thanks, Thanks for taking my question you mentioned the the ruling in M. U for Antidumping and I was wondering in the past how effective when would you like these have been and when you might see a benefit from that one within the region.

Raviv Zoller: These kinds of things are very effective. They basically immediately cause the market price to go up. And so it makes us much more competitive. It also allows us to overcome the hurdle of introducing new solutions that, for example, are more environmentally friendly or more sustainable for the long run. If the price is at a certain level, it may not be sufficiently economical to introduce it into the market. But once you know that the average price in the market goes up, then suddenly you can actually replace the old product. And then the effectiveness of such a move can be very, very significant.

Dan Rizzo: These kinds of these kinds of things are very effective the basically immediately cause the market price to go up.

Raviv Zoller: And so it makes us much more competitive it also allows to to pass a hurdle of introducing new solutions that for example are more environmental friendly or more sustainable for the long run that.

Raviv Zoller: If the prices at a certain level it may not be sufficiently economic to to introduce them to the market. The once you know that the average price in the market goes up and then suddenly you can actually replaced the old product and then the effectiveness of such can be very very longterm.

Raviv Zoller: Okay, and then a similar petition was also initiated in the US. So we expected within a year or so the same thing could happen in the Netherlands. That's really helpful. I do appreciate that. And then with Potter's demand, I mean, or demand in general, things are generally improving. But I was wondering if customers are still kind of keeping inventories very tight, or if there are signs of a restock cycle, or early signs of a restock cycle, I should say.

Raviv Zoller: Okay, and then a similar mentioned.

Raviv Zoller: <unk> petition was was also initiated in the U S. So we expected within a year or so the same thing could happen in New York.

Raviv Zoller: But that's that's that's really helpful. I I do appreciate that and then was punished punished demand or demand in general things are.

Raviv Zoller: Generally improving but I was wondering if customer was still kind of keeping the inventories very tight or if there are signs of a restock cycle or early sign of restocking cycle I should say.

Raviv Zoller: I think it differs in different parts of the world. If you take China, then China has a lot of current inventory. It's managed centrally. India is also managed relatively centrally, but there the inventory is not. Unknown Attendee, William Tang, Maggie Tharp, Raviv Zoller, Mubasher Chaudhry, Aya Landman

Raviv Zoller: I think it differs in different parts of the World. If you take China and China's a lot of current inventory. It's managed centrally India's also <unk> relatively central but but but there the the inventory is not high enough at the moment.

Raviv Zoller: And then in other regions, we're not seeing the same heavy stock load that we saw in the U S and in in Brazil, and recent a couple of years. So the demand is a robust there's nutrient deficiency deficiency of potassium for sure.

Raviv Zoller: So we see very healthy demand this year.

Raviv Zoller: Maybe.

Raviv Zoller: To do it that would be current interest rates the way, they especially I Ain't in Brazil, and also Uh huh.

Raviv Zoller: Higher than expected and most resistant to work a carrying cost.

Raviv Zoller: [inaudible] is obviously a bigger issue than before, and therefore, what potentially we can witness is that people, especially the chain stores, will be buying closer to the event of usage. So a pileup has a cost today. So, obviously, the demand projected for 2024 is significantly higher than 23, which in itself was higher than 22. But it can be more close to the event than general restocking at a very high level.

Raviv Zoller:

Raviv Zoller: Obviously, a bigger issue than before and therefore, what the potentially we can witness is that people, especially the the the chain would be buying closer to a deal with the advent of usage, so with dial up as a close today. So what we can see obviously the demand <unk>.

Raviv Zoller: Did the 420 24, we significantly IL that twenty-three, which in itself I open 22, but it can be more close to the event the general restocking at the very high level.

Raviv Zoller: By the way, apart from China, it's the other way round, because in China, the interest rates, recently, because of the issues with the stimulus there, are the lowest they have been in many, many years. In fact, it used to be that the Western world was low, very low interest rates for years, and China was high. Now it's completely the flip side.

Raviv Zoller: By the way at Boston.

Raviv Zoller: It's the other way around because in China. The interest rates are interested because of the issues with the stimulus though.

Raviv Zoller: Lois they have been in many many years in fact used to be that the western world was that was low very low interest rate for your vagina with I know its complexity flipside.

Raviv Zoller: Thank you very much. Welcome. Thank you. Thank you.

Speaker Change: Alright. Thank you very much welcome. Thank you. Thank.

Operator: Thank you. Thank you. Our next question today comes from the line of Anthony Ted Leary of BMO. Please go ahead.

Speaker Change: Thank you. Our next question today comes with a line of Anthony February available. So you can go ahead.

Speaker Change: [noise] <unk> you hear me.

Unknown Attendee: Yes, Anthony, go ahead. Hello, I'm Joel. Hi Joel, how are you?

Speaker Change: <unk> <unk> <unk>.

Speaker Change: I'm Joel how did.

Speaker Change: Oh, how are Ya.

Speaker Change: Okay, a few question.

Unknown Attendee:

Raviv Zoller: Can you talk about, like, do you see IT earnings being greater in the second quarter than in the first quarter? Maybe talk about some of the puts and takes. Unknown Attendee, William Tang, Maggie Tharp, Raviv Zoller, Mubasher Chaudhry, Aya Landman, Okay, and then that's helpful. Thank you. And then Unknown Speaker in Potash, pretty stable for you there. A couple things. So, do you think pricing will be similar in the second quarter versus the first quarter?

Speaker Change: Can you talk about like D. U E N I T earnings and greater than the second quarter than the first quarter, maybe talk about some puts and takes.

Raviv Zoller: Do you have an ice cream and.

Raviv Zoller: <unk> on an IP typically the first quarter of the seasonally higher so we don't see a big difference between Q1 and Q2 this year, but we will see continued sequential growth. So we do expect a higher prices and.

Raviv Zoller: Ah better results in the second quarter for IP second half Sir.

Raviv Zoller: Right.

Raviv Zoller: Okay and then that's helpful. Thank you and then.

Raviv Zoller: And potash.

Raviv Zoller: It's pretty stable for you there a couple of things so.

Raviv Zoller: Do you think pricing will be similar in the second quarter versus the first quarter.

Raviv Zoller: And.

Raviv Zoller: I know we talked about China, India before a little bit by this call, but, You know, if we're not getting seaborne contracts in either country, because there's a lot of rail shipments going to China, and there seems to be cargo, like cargo by cargo more spot deals in India, you know, as a company that sells a lot, to both, do you think that the markets are changing and how potash will be sold to those countries, no longer seaborne contracts, maybe more spark cargoes, or what do you think?

Raviv Zoller: And then we talk about China, India, a for a little bit, but it is called but.

Raviv Zoller: You know if if we're not getting seaborne contracts in either country cause you know, there's a lot of rail shipments going to China and it seems to be some cargo like cargo by cargo more spot deals in India.

Raviv Zoller: You know as a company that fell the lots of both did you think that the markets are changing and how potash will be sold to those countries no longer seaborne contracts, maybe more spark cargoes or what do you think.

Raviv Zoller: We don't really see a significant shift. I mean, railway deliveries sort of peaked last year. I don't think they're that economical anymore, so I don't really see them growing. There are always, you know, regions that carry higher prices, and that's how deliveries move. As you know, we're a price taker in the market, so we capitalize on the maximum price opportunities that we have, and there's ample demand this year, so from our perspective, we don't see any significant change.

Speaker Change: We don't really see we don't really see a significant shift we don't see that I mean rail railway deliveries sort of peaked last year I don't think they're that economical anymore. So I don't really see them growing.

Raviv Zoller: Always there's you know <unk> regions that carry higher prices and that's how deliveries move as you know we're price take her in the market. So we capitalize on maximum price opportunities that we have and there's ample demand this year. So <unk>.

Raviv Zoller: Our perspective, we don't see any significant change so.

Raviv Zoller: Still, Europe is a smaller market, but fewer of the suppliers are active in Europe, and obviously, the long-term trend is that China's becoming more dependent on Laos, so there'll be less Western products going to China, but other than that, we don't see any short-term shifts.

Raviv Zoller: Europe is is smaller market, but less of the suppliers are active in in Europe and obviously.

Raviv Zoller: The longterm trend is the China's becoming more dependent on <unk>, so there'll be less western product going to China, but other than that we don't see any short term ships.

Raviv Zoller: And just on the Q2 price in Q2 for potash being similar to Q1 or not?

Raviv Zoller: And just sound like shoot your price and Q2 for potash being similar to Q1 or not so yeah Q2 is in our case at this moment, where we're almost sold out for queue to where a few dollars less and I think we're about six to seven bucks less than first quarter, it's not final, but it shouldn't <unk>.

Raviv Zoller: So yeah, Q2 is, in our case, at this moment, where we're almost sold out for Q2, we're a few dollars less than I think we are about six to seven bucks less than the first quarter. It's not final, but it shouldn't change more than one or two.

Raviv Zoller: Change more than one or 2%, which is okay and just wanted to make some big enjoyed mmm.

Raviv Zoller: But it's also dependent on the mix of sales, Joel. The mix of sales can have a significant... Yeah, keep in mind that in the second quarter, our mix to Europe is a little lower, so that sort of ticks prices up in the first quarter. Our mix is...

Raviv Zoller: Makes a face can I have a significant yeah keep in mind that in a second quarter are mixed to Europe as a little lower so that sort of a ticket prices up in the first quarter or mixes too.

Raviv Zoller: Okay, so my final question is on, you know, the polysulfite, which we've, you know, looked for over a decade. It's something that you've really tried to push. And there are reasons why maybe, maybe you don't want to close the mine, pay reclamation costs, if you want to see what happens with serious minerals, and now woodsmith. The question I have is, a couple questions.

Speaker Change: Okay. So now my final question is on you know the poly sulfite, which you know look for over a decade, it's something that you really tried to push and there's reasons why maybe maybe you don't want to close the mind pay reclamation cost if you want to see what happens with Syria spent all the now what's <unk> question I have a couple of questions one polysulfide, losing money this year again.

Raviv Zoller: One, is polysulfite losing money this year again? You know, assuming it is, at what point do you say the experiment's over? We gave it a shot. And to what extent do we know what's going on in the news with Anglo and Woodsmith? And, you know, to what extent would would would would, you know, Anglo either being bought or closing down Woodsmith or which was closed because it was bought by someone else? To what extent would your decision on Bowlby Cleveland Potash determine whether Woodsmith gets built or doesn't get built?

Raviv Zoller: <unk> you know it's to me it is at what point do you say the experiments over we gave it a shot and to what extent, we know what's going on on the news Anglo on what Smith.

Raviv Zoller: What to what extent would would would would you know Anglo either being bought or closing down what's <unk>, which is close to because it gets popped by someone else to what extent with your decision on on Bowlby, Cleveland potash to determine whether what Smith, guys get built or doesn't get belts.

Raviv Zoller: First of all, our assumption is that it doesn't get built, to be honest, in the long run. Just the demand for the product is not enough to justify that kind of investment. As far as we're concerned, we're looking at the shorter term; we're looking a few years down the road. And right now, the product is about to break even, which is disappointing, but it was very profitable in 2022, and it was marginally profitable in 2023.

Raviv Zoller: First of all our assumption is that it doesn't get billed to be honest in the long run.

Raviv Zoller: Just the demand for the product is not enough to justify that kind of investment as far as we're concerned we're looking at the shorter term or looking few years down the road in right now with the product is about breakeven, which was disappointing but it was very profitable in 2022.

Raviv Zoller: Too and it was a marginally profitable in 2023, so we're looking for ways to further go downstream.

Raviv Zoller: So we're looking for ways to go further downstream and turn it into a viable, sustainable business. But to tell you that we're 100% sure that it's going to be part of ICO 10 years from now, I can't say that yet.

Raviv Zoller: And turn it into a viable sustainable business, but to tell you that 100% sure that it's gonna be part of Ico 10 years for now I can't say that yet.

Raviv Zoller: Just sorry, I'm being greedy. Following up on that. Yes, it made money in 22, Raviv, but that wasn't potash, but it's three times higher and not sustainable, right? So isn't that sort of the answer to the question that, after 10 years, you know, does it make sense? [inaudible]

Raviv Zoller: Sorry, I'm ingredient followed up on that yes. It made money in 22 review, but that wasn't potash prices for three times higher and not sustainable right. So isn't that sort of the answer to the question that after 10 years, you know does it make sense.

Speaker Change: Keep going with it I mean, another way to look at it would be <unk>.

Raviv Zoller: How can you how much cash can you free up or how can you improve the balance sheet are how can a company be more simple you know if you did divest at or close at the answer is yes, and no because in some regions in the world. It's looked at for commodity for the for the some of the commodity parts prices.

Raviv Zoller: The answer is yes and no because in some regions in the world, it's looked at for some commodity prices, but in other regions, and, for example, in most of Europe, the product commands a premium because of its being organic and also specific attributes that create additional yields and additional profitability. So I would say the product is very well received in Europe. It's well received in some other regions, but it's still very much a commodity outside of Europe and North America. In Europe, the market opportunity that still exists is not that large. The opportunity in North America is larger. I would say probably hundreds of thousands of tons, but not millions like some things.

Raviv Zoller: But in other regions and for example in most of Europe, the product commands a premium because of it's it's being organic and also specific attribute that that create the the additional yields an additional profitability. So I would say the product is.

Raviv Zoller: <unk> very well received in Europe, it's well received in some other regions, but it's still very much a commodity outside of Europe, and North America in Europe. The the market opportunity is still is that still exist is not.

Raviv Zoller: That large you opportunity in North America is larger I would say probably hundreds of thousands of tonnes, but not the millions like like something.

Raviv Zoller: So, yes, the price of potash obviously is very significant, you know, in crazy times like 2022, because then those that buy the product as a commodity are also willing to pay a lot. But in normal years, the question is, how much of a premium can the product demand? And I feel it's been very successful in penetrating the market with the product in Europe, less so in the US, just in terms of the amount of penetration we've actually achieved.

Raviv Zoller: So yes, the the price of put US obviously is very significant you know and and Crazy times like 2022, because then those that buy the product is a commodity you're also willing to pay a lot but in in normal years. The question is how much of a premium can a product demand.

Raviv Zoller: And and I feel it's been very successful and penetrating with the product in Europe are less though in the U S. Just in terms of the amount of penetration, we've actually achieved but the product is doing very well and the customers are very happy. So I do see I do see a future for the product but to tell you that we've made a final does.

Raviv Zoller: But the product is doing very well, and the customers are very happy, so I do see a future for the product. But to tell you that we've made a final decision, the burden on the cash flow is relatively negligible. It doesn't move the clock on ICO.

Raviv Zoller: <unk> the burden on the cash though is relatively negligible it doesn't move the it doesn't move a clock on I C O.

Raviv Zoller: Thank you very much. Thank you. Thank you. If you have no further questions, please proceed. Okay, so with that, thank you very much for participating in our call this quarter. We're happy to report on our progress and looking forward to reporting again next quarter. Thanks again to all the ICL employees for their great contribution, and we appreciate our shareholders and their trust in us. Thank you very much, and take care. Thank you.

Speaker Change: Thank you very much.

Raviv Zoller: Thank you. Thank you.

Raviv Zoller: Thank you you have no further questions. Please proceed.

Raviv Zoller: Okay. So with that thank you very much for participating in our call. This quarter. We're happy to report to you on our progress and looking for to reporting again.

Raviv Zoller: Next quarter, Thanks, again to all of I still employees with a great contribution and we appreciate our shareholders and in their <unk> in their trust in us. Thank you very much and take care. Thank you.

Raviv Zoller: Goodbye.