ICL Group Ltd.

Earnings Release • Aug 1, 2018

Q2 2018 Results

Raviv Zoller | CEO August 1 st , 2018

Disclaimer and Safe Harbor for Forward-Looking Statements

The information contained herein in this presentation or delivered or to be delivered to you during our presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Israel Chemicals Ltd. ("ICL" or "Company") securities or in any securities of its affiliates or subsidiaries.

This presentation and/or other oral or written statements made by ICL during its presentation or from time to time, may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Whenever words such as "believe," "expect," "anticipate," "intend," "plan," "estimate", "predict" or similar expressions are used, the Company is making forward-looking statements. Such forward-looking statements may include, but are not limited to, those that discuss strategies, goals, financial outlooks, corporate initiatives, existing or new products, existing or new markets, operating efficiencies, or other non-historical matters.

Because such statements deal with future events and are based on ICL's current expectations, they could be impacted or be subject to various risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in our Annual Report on Form 20-F for the year ended December 31, 2017, and in subsequent filings with the Tel Aviv Securities Exchange (TASE) and/or the U.S. Securities and Exchange Commission (SEC). Therefore actual results, performance or achievements of the Company could differ materially from those described in or implied by such forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can provide no assurance that expectations will be achieved. Except as otherwise required by law, ICL disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise. Readers, listeners and viewers are cautioned to consider these risks and uncertainties and to not place undue reliance on such information.

Certain market and/or industry data used in this presentation were obtained from internal estimates and studies, where appropriate, as well as from market research and publicly available information. Such information may include data obtained from sources believed to be reliable, however ICL disclaims the accuracy and completeness of such information which is not guaranteed. Internal estimates and studies, which we believe to be reliable, have not been independently verified. We cannot assure that such data is accurate or complete.

Included in this presentation are certain non-GAAP financial measures, such as Adjusted operating income, Adjusted EBITDA and Adjusted net income, designed to complement the financial information presented in accordance with IFRS because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with IFRS. Please refer to our Q2 2018 press release for the quarter ended June 30, 2018 for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with IFRS.

Strong sales growth and margin expansion across all of ICL's businesses: Bromine, Potash and Phosphate value chains, and Specialty Fertilizers

Operating income increased by 19%. Excluding divested businesses, adjusted operating income increased by 47%(1) and adjusted net income more than doubled(1)

Strong balance sheet following divestments and debt optimization

Solid operating cash flow generation supports distribution of \$56 million dividend for Q2 with an industry leading annualized dividend yield of ~3.5%(2)

ICL to align its organizational structure with its strategy to enhance leading market position and promote growth

See Q2 2018 6-K for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income (1) See reconciliation table in the appendix (2) Based on a share price of \$4.77 as of July 30th , 2018

Q2 2018 Results Summary

\$ millions	Q2 18	Q2 17	% change	Q1 18	% change
Sales	1,371	1,322	4%	1,404	(2)%
Operating income	172	144	19%	985	(83)%
Adjusted operating income(1)	188	153	23%	151	25%
Adjusted EBITDA(1)	296	251	18%	251	18%
Net income	101	57	77%	928	(89)%
Adjusted net income(1)	113	64	77%	106	7%
EPS(2)	\$0.08	\$0.04	77%	\$0.73	(89)%
Adjusted EPS(2)	\$0.09	\$0.05	77%	\$0.08	7%
Operating Cash Flow	164	199	(18)%	36	356%
Net Debt	2,267	3,300	(31)%	2,269	-

(1) Adjusted operating income, Adjusted net income and Adjusted EBITDA are non-GAAP financial measures. See Q2 2018 6-k for a reconciliation of Adjusted operating income to operating income, adjusted net income to net income and calculation of adjusted EBITDA

(2) Fully diluted. EPS and Adjusted EPS calculated as net income and Adjusted net income, respectively, divided by weighted-average diluted number of ordinary shares outstanding. See 6-k for number of shares for each period.

Specialty Solutions: Business Performance and Major Developments

✓Segment performance more than compensated for the lost sales of the divested businesses

✓Record quarterly operating income for ICL Industrial Products driven by higher prices, continued environmental pressure on Chinese producers and strong clear brine fluids sales

✓Successful implementation of value oriented sales initiatives at ICL Advanced Additives.

✓Recovery in dairy proteins drove ICL Food Specialties' significant growth in sales and operating income

Essential Minerals: Business Performance and Major Developments

✓Higher potash prices coupled with improved production offset increased logistics and energy costs, resulting in significant increase in potash profitability

✓Higher prices and an increase in commodity phosphate fertilizer sales volumes more than compensated for higher Sulphur and logistics costs

✓Higher specialty fertilizers sales and operating profit supported by continuous growth in specialty agriculture

(1) Source: Bloomberg

• (2) Global price index for Food Grade White Phosphoric Acid, from ICL internal sources
• (3) Source: CRU

Aligning Organizational Structure with Strategy to Enhance Market Leadership and Promote Growth

1H2018 estimated performance, pro-forma for aligned divisions

(1) Unaudited pro-forma numbers for Phosphate Solutions division after setoffs of intra-division sales and profit, and excluding divested businesses..

(2) Including inter-segment sales, excluding G&A, unallocated expenses Sales and operating income figures are rounded

Aligning Organizational Structure with Strategy to Enhance Market Leadership and Promote Growth

1H2018 estimated performance, pro-forma for aligned divisions

(1) Unaudited pro-forma numbers for Phosphate Solutions division after setoffs of intra-division sales and profit, and excluding divested businesses.

(2) Including inter-segment sales, excluding G&A, unallocated expenses

On the Verge of a Tipping Point…

POSITIVE BUSINESS MOMENTUM

Q2 2018 continued strong performance, margin expansion and successful valueoriented initiatives in specialty businesses

IMPROVING MARKET CONDITIONS

Higher commodity prices, demand growth and tight supply

SHARE OVERHANG REMOVED

Nutrien successfully sold its ~14% stake to a group of Israeli and foreign institutional investors

GROWTH STRATEGY

Enhance market leadership and capture growth throughout our businesses

DEBT OPTIMIZATION

Providing financial flexibility to execute strategy

ALIGNED ORGANIZATION

New long-term labor contracts, streamlining organization, smooth transition of new CEO

Financial Results

Kobi Altman CFO

Positive Contribution to Sales from All Business Lines

See Q2 2018 6-K for a reconciliation of Adjusted operating income to operating income and adjusted net income to net income. Numbers may not add due to rounding and set offs. * Pro-forma numbers excluding contribution of \$68 million of divested businesses

… As well as to Adjusted Operating Income

See Q2 2018 6-K for a reconciliation of Adjusted operating income to operating income and adjusted net income to net income. Numbers may not add due to rounding and set offs. * Pro-forma excluding contribution of \$25 million of divested businesses

Strong Consolidated Performance with Top Line Growth and Margin Expansion

Q2 2018 SALES Q2 2018 ADJUSTED OPERATING INCOME

\$ millions	Q2 18	FY2017
tax (1) Adjusted income before	134	528
Normalized tax rate (including resource tax)	22%	26%
Normalized tax expenses	30	136
Carryforward losses not recorded for tax purposes	3	19
Sub-Total	33	155
Sub-Total - %	25%	29%
Other items (mainly exchange rate impact)	(9)	1
Adjusted income tax	24	156
Actual Effective tax rate	18%	30%

\$ millions	Q2 18	Q2 17
Net income	98	55
Depreciation, amortization	105	95
Other adjustments to net income	24	37
Change in Working capital	(63)	12
Net cash provided by operating activities	164	199
Capex	(121)	(113)
Free cash Flow	43	86

Successful Optimization of Debt Structure

\$ millions

17

Successful Optimization of Debt Structure

\$ millions

Maturities as of March 2018

Successful Optimization of Debt Structure

Loans Securitization Maturities

Q2 2018 Key Takeaways

On the Verge of a Tipping Point…

POSITIVE BUSINESS MOMENTUM

Q2 2018 continued strong performance, margin expansion and successful valueoriented initiatives in specialty businesses

IMPROVING MARKET CONDITIONS

Higher commodity prices, demand growth and tight supply

SHARE OVERHANG REMOVED

Nutrien successfully sold its ~14% stake to a group of Israeli and foreign institutional investors

QUESTIONS?

GROWTH STRATEGY

Enhance market leadership and capture growth throughout our businesses

DEBT OPTIMIZATION

Providing financial flexibility to execute strategy

ALIGNED ORGANIZATION

New long-term labor contracts, streamlining organization, smooth transition of new CEO

Appendix

Specialty Solutions Bridge Analysis

Specialty Solutions' Q2 Business Line Sales Analysis

Essential Minerals Bridge Analysis

Essential Minerals' Q2 Business Line Sales Analysis

Potash Business Q2 Stand-Alone Results Analysis

\$ millions

Alignment of Organizational Structure

\$ millions		Sales		Adj. Operating Income
Current segment	Current business lines	Aligned division	Q2 2018	Q2 2017	Q2 2018	Q2 2017
Essential Minerals - Agriculture Specialty Solutions Industrial	Potash & Magnesium	Potash	346	314	76	61
	Specialty Fertilizers	Innovative Ag Solutions	212	190	23	19
	Phosphate Commodities
	Advanced Additives	Phosphate Solutions	540(1)	507(1)	55(1)	37(1)
	Food Specialties
	Industrial Products	Industrial Products	331	291	94	76
Other, G&A and Set-offs		(58)	(48)	(60)	(65)
	Sub-total		1,371	1,254	188	128
Divested businesses			68		25
	Total		1,371	1,322	188	153

(1) Unaudited pro-forma numbers for Phosphate Solutions division after setoffs of intra-division sales and profit, and excluding divested businesses..

Division sales and profit Include inter-segment sales, exclude G&A and unallocated expenses

Reconciliation Tables

Calculation of Adjusted income before tax (\$ millions)	Q2 18	FY2017
Adjusted operating income	188	652
Finance expenses	(54)	(124)
Adjusted income before tax	134	528

Calculation of Pro-forma Adjusted operating income (\$ millions)	Q2 18	Q2 17
Operating income	172	144
Adjustments(1)	16	9
Adjusted operating income	188	153
Divested businesses' profit	-	(25)
Pro-forma Adjusted operating income	188	128

Calculation of Pro-forma Adjusted net income (\$ millions)	Q2 18	Q2 17
Net income	101	57
Adjustments(1)	12	7
Divested businesses' profit	-	(25)
Allocated tax and finance expenses for divested businesses	-	11
Pro-forma Adjusted operating income	113	50

See Q2 2018 6-K for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. (1) See detailed reconciliation table in the Q2 2018 6-K

Non-GAAP Financial Measures

We disclose in this Quarterly Report non-IFRS financial measures titled adjusted operating income, adjusted net income attributable to the Company's shareholders, adjusted EBITDA and free cash flow. Our management uses adjusted operating income, adjusted net income attributable to the Company's shareholders and adjusted EBITDA to facilitate operating performance comparisons from period to period and present free cash flow to facilitate a review of our cash flows in periods. We calculate our adjusted operating income by adjusting our operating income to add certain items, as set forth in the reconciliation table "Adjustments to reported operating and net income" above. Certain of these items may recur. We calculate our adjusted net income attributable to the Company's shareholders by adjusting our net income attributable to the Company's shareholders to add certain items, as set forth in the reconciliation table "Adjustments to reported operating and net income" above, excluding the total tax impact of such adjustments and adjustments attributable to the non-controlling interests. We calculate our adjusted EBITDA by adding back to the net income attributable to the Company's shareholders the depreciation and amortization, financing expenses, net, taxes on income and the items presented in the reconciliation table "Adjusted EBITDA for the periods of activity" below which were adjusted for in calculating the adjusted operating income and adjusted net income attributable to the Company's shareholders. We calculate our free cash flow as our cash flows from operating activities net of our purchase of property, plant, equipment and intangible assets, and adding Proceeds from sale of property, plant and equipment and Dividends from equity-accounted investees during such period as presented in the reconciliation table under "Calculation of free cash flow".

You should not view adjusted operating income, adjusted net income attributable to the Company's shareholders or adjusted EBITDA as a substitute for operating income or net income attributable to the Company's shareholders determined in accordance with IFRS, or free cash flow as a substitute for cash flows from operating activities and cash flows used in investing activities, and you should note that our definitions of adjusted operating income, adjusted net income attributable to the Company's shareholders, adjusted EBITDA and free cash flow may differ from those used by other companies. However, we believe adjusted operating income, adjusted net income attributable to the Company's shareholders, adjusted EBITDA and free cash flow provide useful information to both management and investors by excluding certain expenses that management believes are not indicative of our ongoing operations. In particular for free cash flow, we adjust our Capex to include any Proceeds from sale of property, plant and equipment because we believe such amounts offset the impact of our purchase of property, plant, equipment and intangible assets. We further adjust free cash flow to add Dividends from equity-accounted investees because receipt of such dividends affects our residual cash flow. Free cash flow does not reflect adjustment for additional items that may impact our residual cash flow for discretionary expenditures, such as adjustments for charges relating to acquisitions, servicing debt obligations, changes in our deposit account balances that relate to our investing activities and other non-discretionary expenditures. Our management uses these non-IFRS measures to evaluate the Company's business strategies and management's performance. We believe that these non-IFRS measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency of key measures used to evaluate our performance.

We present a discussion in the period-to-period comparisons of the primary drivers of changes in the company's results of operations. This discussion is based in part on management's best estimates of the impact of the main trends in its businesses. We have based the following discussion on our financial statements. You should read the following discussion together with our financial statements.