ICL Group Ltd.

Earnings Release • Jul 29, 2016

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	Consolidated
	2,514 259 2,773 704			(expenses) and intercompany eliminations
			\$ millions
For the year ended December 31, 2014
Sales to external parties		3,064	533	-	6,111
Inter-divisions sales		22	8	(289)	-
Total sales		3,086	541	(289)	6,111
Operating income (loss)		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

ICL Millennium Tower, 23 Aranha St. Tel-Aviv 6107025 Tel. 03-6844400 Fax 03-6844444

כיל מגדל המילניום, ארניה 23 תל אביב )6107025( טלפון 03-6844400 פקס 03-6844444

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 Specialty Minerals Solutions Division Division	Other	General and administrative and other unallocated	Consolidated
			activities	income (expenses) and intercompany eliminations
			\$ 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

ICL Millennium Tower, 23 Aranha St. Tel-Aviv 6107025 Tel. 03-6844400 Fax 03-6844444

כיל מגדל המילניום, ארניה 23 תל אביב )6107025( טלפון 03-6844400 פקס 03-6844444

	Essential	Specialty	Other	General and administrative and other unallocated
	Minerals Division	Solutions activities Division		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 \$ millions	1-3/2015 \$ millions	4-6/2015 \$ millions	7-9/2015 \$ millions	10- 12/2015 \$ millions	2015 \$ millions	1-3/2016 \$ 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 \$ millions	1-3/2015 \$ millions	4-6/2015 \$ millions	7-9/2015 \$ millions	10- 12/2015 \$ millions	2015 \$ millions	1-3/2016 \$ 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.

Name of the authorized signatory on the report and name of authorized electronic reporter: Lisa Haimovitz Position: SVP, Global General Counsel and Company Secretary Signature Date: July 29, 2016

29 ביולי 2016

נתונים פיננסיים – הצגה מעודכנת בהמשך למבנה הארגוני המעודכן של החברה

החברה מגבשת את המבנה הניהולי של יחידותיה העסקיות ויחידותיה התפעוליות בשתי חטיבות: מינרלים חיוניים )Minerals Essential )ופתרונות מיוחדים )Solutions Specialty). במטרה ליצור התאמה למבנה הניהולי, מצויה כיל בתהליך של בחינת אופן ההצגה של מגזרי הפעילות בדוחותיה הכספיים בהתאם לתקנים חשבונאיים מקובלים. דוחות הרבעון השני לשנת 2016 של כיל ישקפו את תוצאות פעילויותיה התפעוליות והעסקיות של החברה בהתאם למבנה הניהולי החדש, כאמור לעיל )להלן: "הצגה מעודכנת"(.

לקראת פרסומן של תוצאות החברה לרבעון השני ביום 10 באוגוסט ,2016 ובמטרה לסייע למשקיעים ולאנליסטים להתכונן להצגה המעודכנת הצפויה של התוצאות כאמור, מציגה כיל להלן נתוני השוואה אודות מכירות, רווח תפעולי ורווח תפעולי מתואם של שתי החטיבות הנ"ל לתקופות של השנים 2014 ו,2015- רבעון ראשון עד רבעון רביעי של שנת 2015 ורבעון ראשון של שנת .2016יצוין, כי הוצאות ההנהלה והכלליות לא הוקצו לחטיבות ולכן הן מוצגות תחת "הוצאות הנהלה וכלליות, הכנסות )הוצאות( שאינן מוקצות וביטולים בין-חברתיים". בנוסף, אנו מציגים בנוסף את התפלגות המכירות של היחידות העסקיות אשר נכללות בשתי החטיבות.

הצגת נתוני ההשוואה כאמור, הוכנה על ידי החברה לנוחותם של משקיעים ואנליסטים, וניתנת כשירות עבורם. זיהויים של מגזרי הפעילות לפי התקנים החשבונאיים המקובלים בהתאם לדרישות ה-IFRS, מצוי עדיין בבחינה וההצגה שלהלן עשויה להשתנות בדוחות כספיים עתידיים.

הנתונים שלהלן אינם מבוקרים ואינם סקורים ונועדו כאמור אך ורק לצרכי נוחותם של המשקיעים והאנליסטים.

	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 Provision in respect of prior periods resulting from an arbitration decision	- 10	- -		(7) -	(7) 10
Retroactive electricity charges	20	-		-	20
Provision for legal claims	6	2		-	8

ICL Millennium Tower, 23 Aranha St. Tel-Aviv 6107025 Tel. 03-6844400 Fax 03-6844444

כיל מגדל המילניום, ארניה 23 תל אביב )6107025( טלפון 03-6844400 פקס 03-6844444

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

ICL Millennium Tower, 23 Aranha St. Tel-Aviv 6107025 Tel. 03-6844400 Fax 03-6844444

כיל מגדל המילניום, ארניה 23 תל אביב )6107025( טלפון 03-6844400 פקס 03-6844444

	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

ICL Millennium Tower, 23 Aranha St. Tel-Aviv 6107025 Tel. 03-6844400 Fax 03-6844444

כיל מגדל המילניום, ארניה 23 תל אביב )6107025( טלפון 03-6844400 פקס 03-6844444

Essential Minerals Division	Specialty Solutions Division	Other activities	General and administrative and other unallocated income (expenses) and intercompany eliminations	Consolidated
		\$ millions
490	751	24	-	1,265
66	4	-	(70)	-
556	755	24	(70)	1,265
72	122	1	(88)	107
-	-		1	1
-	6		-	6
1	-		-	1
1	6		1	8
73	128		(86)	115

תרגום נוחות – הנוסח המחייב הוא נוסח הדיווח באנגלית

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 \$ millions	1-3/2015 \$ millions	4-6/2015 \$ millions	7-9/2015 \$ millions	10- 12/2015 \$ millions	2015 \$ millions	1-3/2016 \$ 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

ICL Millennium Tower, 23 Aranha St. Tel-Aviv 6107025 Tel. 03-6844400 Fax 03-6844444

כיל מגדל המילניום, ארניה 23 תל אביב )6107025( טלפון 03-6844400 פקס 03-6844444

חלק מהנתונים דלעיל כוללים נתונים שלא נערכו בהתאם לכללי IFRS, תחת הכותרת "רווח תפעולי מתואם". הנהלת החברה עושה שימוש ברווח התפעולי המתואם לצורך השוואת ביצועיה העסקיים של החברה בין תקופות. החברה מחשבת את הרווח התפעולי המתואם על ידי ביצוע התאמות לרווח התפעולי.

אין להתייחס לרווח התפעולי המתואם כתחליף לרווח התפעולי בהתאם לכללי IFRS, ויצוין כי הגדרת הרווח התפעולי המתואם בה משתמשת החברה עשויה להיות שונה מהגדרתו של מונח זה בחברות אחרות. אנו סבורים כי הצגת הרווח התפעולי המתואם יחד עם מדדים בהתאם לכללי ה-IFRS, מספקת מידע שימושי הן להנהלת החברה והן למשקיעים. הנהלת החברה עושה שימוש בנתונים מתואמים כאמור, שאינם בהתאם לכללי IFRS, על מנת להעריך את האסטרטגיות העסקיות של החברה ואת הביצועים של ההנהלה.

שם מורשה חתימה על הדיווח ושם מורשה חתימה אלקטרונית: לייזה חיימוביץ תפקידה: סמנכ"ל בכיר, יועצת משפטית גלובאלית ומזכירת החברה תאריך החתימה: 29 ביולי 2016