To capitalize on its competitive advantages, ICL is pursuing a focused strategy designed to optimize its operational synergies, expand its production of higher-value downstream products and maximize its cash flow. As part of these efforts, ICL invests continuously in capacity expansion while building out its worldwide presence, marketing and customer support capabilities.

The Company’s seeks to maximize shareholder value by taking into account the expectations and rights of parties with interests in ICL (such as the Company’s employees), as well as requirements for safety and conservation of the environment. To realize its strategy, ICL relies on its strengths while capitalizing on those global megatrends that are relevant to its capabilities, strengths and the infrastructure that it has developed. This activity is in addition to growth in ICL’s traditional businesses, as shown in this diagram:

ICL’s strategic work plan is as follows:  

Focus on operational segments: ICL is based on a segmented management structure that is comprised of three segments: ICL Fertilizers, ICL-Industrial Products and ICL Performance Products.  

Increase penetration of international markets: ICL is focused on increasing its global distribution by adding products and services that are synergetic with its existing operations, in part through joint ventures and acquisitions. ICL strives to manufacture products that will improve quality of life throughout the world and is focused on increasing its global presence by establishing regional centers in target growth markets. During 2010, the Company established a regional office in India which joins other regional offices located in Brazil, China and North America. 

Expansion of core activities: ICL is working on continued investment in the areas of potash, bromine and phosphate to expand its market share and reduce its production costs. For example, in the past few years, ICL has invested approximately $150 million in maintaining and expanding its potash production capacity. It has also approved an expansion of its bromine production capacity.  

Acquisitions and joint ventures: ICL strives to strengthen its core businesses through acquisitions of complementary technologies and auxiliary businesses. For example, in early 2011, ICL acquired The Scotts Miracle-Gro Company’s Global Professional business for $270 million, and Antonio Fuentes Mendez S.A., Spain’s largest producer of specialty fertilizers, for an undisclosed sum. These acquisitions establish ICL Specialty Fertilizers as a global $650 million specialty fertilizers company with a broad product portfolio of soluble, liquid, slow-release and control release fertilizers, strong global sales and marketing capabilities and production facilities in the US, EU and Israel. ICL is interested in continuing to leverage its technological and operational know-how and other capabilities to purchase other businesses in order to maximize its competitive advantages, synergies and growth potential.

 Expanding range of higher value-added product offerings: ICL is working to expand its production and sales of higher value-added products through vertical and horizontal integration, by adding new products and applications and by customizing existing products to meet unique customer requirements and new purposes (such as increased environmental regulation).

 Taking full advantage of synergies: ICL relies on potential synergies among its production facilities in an effort to increase its efficiency and competitiveness and to reduce its cost of production, marketing and logistics. Synergies are manifested, among other things, by using waste and by-products of one process as raw material for another process. ICL’s “Centers of Excellence” throughout the world promote the exploitation of potential synergies.

 Improving cash flow: ICL is focused on improving its cash flow as part of its strategic approach. In this context, cash flow is a central determinant in ICL and the segments’ considerations in making management decisions.

 Diversifying sources of financing: ICL seeks to diversify its sources of financing between bank and non-bank sources in order to increase the relative share of non-bank sources. The Group also seeks to diversify among domestic (Israeli) and international (non-Israeli) financing sources.