6-K 1 dp67497_6k.htm FORM 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of July, 2016

 

Commission File Number: 001-13742

 

ISRAEL CHEMICALS LTD.

(Exact name of registrant as specified in its charter)

 

Israel Chemicals Ltd.

Millennium Tower

23 Aranha Street

P.O. Box 20245

Tel Aviv, 61202 Israel

(972-3) 684-4400

(Address of principal executive office)

 

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

 

Form 20-F

X

   Form 40-F  

 

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

 

Yes     No

X

 

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

 

Yes     No

X

 

 

 

 
 

 

ISRAEL CHEMICALS LTD.

 

INCORPORATION BY REFERENCE

 

This report on Form 6-K shall be deemed to be incorporated by reference into the registration statement on Form S-8 (Registration Number: 333-205518) of Israel Chemicals Ltd. and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

 

 

 

 

 

 

 

 
 

 

ISRAEL CHEMICALS LTD.

 

1.Financial Data – Revised Presentation Following the ICL’s New Organizational Structure

 

 

 

 

 
 

 

Item 1

  

July 29, 2016

 

 

Financial Data – Revised Presentation Following the ICL’s New Organizational Structure

 

As part of ICL's managerial alignment of its business and operations into two divisions: Essential Minerals and Specialty Solutions, it is presently in the process of reviewing the presentation of its operational segments in its financial statements as required in accordance with the applicable accounting standards. ICL’s Q2 2016 financial report will reflect disclosure of the results of the operations and business activities in accordance with the new managerial structure, as stated above (the “Revised Presentation”).

 

In anticipation of publication of ICL's Q2 2016 results on August 10, 2016, and in order to assist investors and analysts to prepare for the expected Revised Presentation of the said results, ICL hereby provides an interim presentation of sales, operating profit and adjusted operating profit of its business divisions, for the comparable periods in 2014 and 2015, Q1-Q4 of 2015 and Q1 of 2016. It should be noted that the general and administrative expenses are not allocated to the divisions and therefore they are presented under "General and administrative and other unallocated income (expenses) and intercompany eliminations". As additional information we also provide the sales breakdown of the business units which comprise the two divisions.

 

This interim presentation was prepared by ICL for the convenience of investors and analysts, and is provided as a service thereto. The identification of the applicable operational segments in accordance with the accounting standards pursuant to the IFRS requirements is still under review and the presentation provided below might change in future financial reports.

 

The figures below have not been audited or reviewed by the Company’s independent auditors and are provided solely for the convenience of the investors and analysts.

 

 

 

 
 

 

   Essential Minerals Division  Specialty Solutions Division  Other
activities		  General and administrative and other unallocated income (expenses) and intercompany eliminations  Consolidated
   $ millions
For the year ended December 31, 2014               
                
Sales to external parties   2,514    3,064    533    -    6,111 
Inter-divisions sales   259    22    8    (289)   - 
Total sales   2,773    3,086    541    (289)   6,111 
                          
Operating income (loss)   704    355    (24)   (277)   758 
                          
Impact of employee strike   8    9         -    17 
Impairment of assets   -    -         71    71 
Income from consolidation of previous equity method investee   -    -         (36)   (36)
Provision in respect of prior periods resulting from an arbitration decision   8    141         -    149 
Other   -    -         1    1 
Total adjustments to operating income   16    150         36    202 
Total adjusted operating income   720    505         (265)   960 

 

 

 

 
 

 

    Essential Minerals Division    Specialty Solutions Division    

Other

activities

    General and administrative and other unallocated income (expenses) and intercompany eliminations    Consolidated 
    $ millions 
For the year ended December 31, 2015                         
                          
Sales to external parties   2,248    2,975    182    -    5,405 
Inter-divisions sales   252    22    3    (277)   - 
Total sales   2,500    2,997    185    (277)   5,405 
                          
Operating income (loss)   576    357    115    (283)   765 
                          
Impact of employee strike   198    50         -    248 
Capital gain from divestitures of non-core businesses and transaction expenses in connection with acquisition and divestitures of businesses   5    -         (213)   (208)
Impairment of assets   -    43         47    90 
Provision for early retirement and dismissal of employees   6    42         -    48 
Income from consolidation of previous equity method investee   -    -         (7)   (7)
Provision in respect of prior periods resulting from an arbitration decision   10    -         -    10 
Retroactive electricity charges   20    -         -    20 
Provision for legal claims   6    2         -    8 
Provision for historical waste removal   -    20         -    20 
Total adjustments to operating income   245    157         (173)   229 
Total adjusted operating income   821    514         (341)   994 

 

 

 
 

 

   Essential Minerals Division  Specialty Solutions Division 

Other

activities

  General and administrative and other unallocated income (expenses) and intercompany eliminations  Consolidated
   $ millions
For the three-month period ended March 31, 2015               
                
Sales to external parties   589    746    68    -    1,403 
Inter-divisions sales   59    7    -    (66)   - 
Total sales   648    753    68    (66)   1,403 
                          
Operating income (loss)   140    78    164    (67)   315 
                          
Impact of employee strike   87    12         -    99 
Capital gain from divestitures of non-core businesses and transaction expenses in connection with acquisition and divestitures of businesses   -    -         (209)   (209)
Impairment of assets   -    -         34    34 
Provision for early retirement and dismissal of employees   -    36         -    36 
Total adjustments to operating income   87    48         (175)   (40)
Total adjusted operating income   227    126         (78)   275 

 

 

 
 

 

   Essential Minerals Division  Specialty Solutions Division 

Other

activities

  General and administrative and other unallocated income (expenses) and intercompany eliminations  Consolidated
   $ millions
For the three-month period ended June 30, 2015               
                
Sales to external parties   424    718    54    -    1,196 
Inter-divisions sales   56    -    3    (59)   - 
Total sales   480    718    57    (59)   1,196 
                          
Operating income (loss)   65    90    18    (66)   107 
                          
Impact of employee strike   108    41         -    149 
Capital gain from divestitures of non-core businesses and transaction expenses in connection with acquisition and divestitures of businesses   -    -         (14)   (14)
Provision for early retirement and dismissal of employees   -    6         -    6 
Income from consolidation of previous equity method investee   -    -         (7)   (7)
Provision for legal claims   3    -         -    3 
Total adjustments to operating income   111    47         (21)   137 
Total adjusted operating income   176    137         (69)   244 



 

 
 

 

   Essential Minerals Division  Specialty Solutions Division  Other
activities		  General and administrative and other unallocated income (expenses) and intercompany eliminations  Consolidated
   $ millions
For the three-month period ended September 30, 2015               
                
Sales to external parties   552    796    31    -    1,379 
Inter-divisions sales   68    7    -    (75)   - 
Total sales   620    803    31    (75)   1,379 
                          
Operating income (loss)   156    130    (12)   (77)   197 
                          
Impact of employee strike   11    6         -    17 
Transaction expenses in connection with acquisition and divestitures of businesses   4    -         2    6 
Provision in respect of prior periods resulting from an arbitration decision   5    -         -    5 
Retroactive electricity charges   12    -         -    12 
Provision for legal claims   3    2         -    5 
Total adjustments to operating income   35    8         2    45 
Total adjusted operating income   191    138         (87)   242 

 

 

 

 
 

 

   Essential Minerals Division  Specialty Solutions Division 

Other

activities

  General and administrative and other unallocated income (expenses) and intercompany eliminations  Consolidated
   $ millions
For the three-month period ended December 31, 2015               
                
Sales to external parties   683    715    29    -    1,427 
Inter-divisions sales   69    8    -    (77)   - 
Total sales   752    723    29    (77)   1,427 
                          
Operating income (loss)   215    59    (55)   (73)   146 
                          
Impact of employee strike   (8)   (9)        -    (17)
Transaction expenses in connection with acquisition and divestitures of businesses   1    -         8    9 
Impairment of assets   -    43         13    56 
Provision for early retirement and dismissal of employees   6    -         -    6 
Provision in respect of prior periods resulting from an arbitration decision   5    -         -    5 
Retroactive electricity charges   8    -         -    8 
Provision for historical waste removal   -    20         -    20 
Total adjustments to operating income   12    54         21    87 
Total adjusted operating income   227    113         (107)   233 

 

 

 
 

 

   Essential Minerals Division  Specialty Solutions Division 

Other

activities

  General and administrative and other unallocated income (expenses) and intercompany eliminations  Consolidated
   $ millions
For the three-month period ended March 31, 2016               
                
Sales to external parties   490    751    24    -    1,265 
Inter-divisions sales   66    4    -    (70)   - 
Total sales   556    755    24    (70)   1,265 
                          
Operating income (loss)   72    122    1    (88)   107 
                          
Capital loss from divestitures of non-core businesses   -    -         1    1 
Provision for early retirement and dismissal of employees   -    6         -    6 
Provision for legal claims   1    -         -    1 
Total adjustments  to operating income   1    6         1    8 
Total adjusted operating income   73    128         (86)   115 

 

 

 
 

 

Sales - Essential Minerals division

 

    2014    1-3/2015    4-6/2015    7-9/2015    10-12/2015    2015    1-3/2016 
    

$

millions

    

$

millions

    

$

millions

    

$

millions

    

$

millions

    

$

millions

    

$

millions

 
Potash & Magnesium                                   
   Sales to external customers   1,738    369    224    364    427    1,384    241 
   Sales to internal customers   164    28    30    37    36    131    32 
Phosphate                                   
   Sales to external customers   776    220    200    188    256    864    249 
   Sales to internal customers   187    48    49    51    52    200    50 
Set off   (92)   (17)   (23)   (20)   (19)   (79)   (16)
Total division   2,773    648    480    620    752    2,500    556 

 



 

 
 

 

Sales – Specialty Solutions Division

 

   2014  1-3/2015  4-6/2015  7-9/2015  10-12/2015  2015  1-3/2016
   $  
millions		  $
millions		  $
millions		  $
millions		  $
millions		  $
millions		  $
millions
Industrial Products                                   
   Sales to external customers   1,013    218    185    221    235    859    224 
   Sales to internal customers   12    2    -    4    6    12    3 
Specialty Fertilizers                                   
   Sales to external customers   734    186    184    147    139    656    180 
   Sales to internal customers   20    6    4    8    6    24    6 
Advanced Additives                                   
   Sales to external customers   803    193    202    275    188    858    188 
   Sales to internal customers   78    24    23    15    25    87    19 
Food Specialties                                   
   Sales to external customers   514    149    147    153    153    602    159 
   Sales to internal customers   12    4    1    4    2    11    3 
Set off   (100)   (29)   (28)   (24)   (31)   (112)   (27)
Total division   3,086    753    718    803    723    2,997    755 

 

 
 

  

We disclose in this presentation non-IFRS financial measures titled adjusted operating income. Our management uses adjusted operating income to facilitate operating performance comparisons from period to period. We calculate our adjusted operating income by adjusting our operating income to exclude certain items.

 

You should not view adjusted operating income as a substitute for operating income determined in accordance with IFRS, and you should note that our definition of adjusted operating income may differ from those used by other companies. We believe that presenting adjusted operating income together with measurements determined in accordance with IFRS, facilitates useful information to both management and investors. Our management uses this non-IFRS measure to evaluate the Company’s business strategies and management’s performance.

   

 
 

 

SIGNATURE

 

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

 

    Israel Chemicals Ltd.
     
     
      By: /s/ Kobi Altman
        Name: Kobi Altman
        Title: Chief Financial Officer
     
     
    Israel Chemicals Ltd.
     
     
      By: /s/ Lisa Haimovitz
        Name: Lisa Haimovitz
        Title: Senior Vice President, Global General Counsel and Corporate Secretary

 

 

Date: July 29, 2016