ICL Group Ltd.

Earnings Release • May 10, 2018

Q1 2018 Results

Asher Grinbaum | Acting CEO May 10th , 2018

Important Legal Notes

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 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 Q1 2018 press release for the quarter ended March 31, 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.

Q1 2018 Results Summary

• Excellent start for 2018, with a positive contribution to sales and operating income from all three mineral chains
• Higher potash production, sales volumes and prices, and growth in specialty fertilizers drove a 36% increase in Essential Minerals segment profit
• Specialty Solutions segment performance continued its positive trend supported by value oriented pricing approach
• Successful completion of the Fire Safety and Oil Additives businesses' divestment reduced net debt level and created financial flexibility to support growth

\$ millions	Q1 18	Q1 17	% change	Q4 17	% change
Sales	1,404	1,295	8.4%	1,361	3.2%
Adjusted operating income	151	116	30.2%	168	(10.1)%
Adjusted net income	106	68	55.9%	142	(25.4) %
Operating income	985	116	749.1%	189	421.2%
Net income	928	68	1,264.7%	155	498.7%
Net Debt	2,269	3,262	(30.4)%	3,037	(25.3)%
Average potash selling price - FOB	244	216	13.0%	222	9.9%

See Q1 2018 press release for a reconciliation of Adjusted operating income to operating income, adjusted net income to net income

Business Performance & Major Developments

	Specialty Solutions				Essential Minerals
\$ million	Q1 2018	Q1 2017	% change
	659	613	7.5%
	131	115	13.9%

• Continued solid performance of Industrial Products, as higher prices offset lower sales of clear brine fluids
• Strong performance of Advanced Additives' supported by value oriented pricing approach in Specialty Phosphates
• Favorable pricing trend in food phosphates and higher dairy proteins volumes contributed to a significant increase in the Food Specialties business line's profit

\$ million	Q1 2018	Q1 2017	% change
Sales*	814	734	10.9%
Segment O/I**	90	66	36.4%

• Over 70% increase in potash business profit driven by higher potash and polysulphate prices, as well as by higher potash production and sales volumes, partially offset by an increase in transportation costs and unfavorable exchange rates
• Record first quarter for Specialty Fertilizers' profit driven by higher volumes, prices and favorable exchange rates
• Higher fertilizers prices and shift to profit at YPH JV in the phosphate commodity business line were offset by higher sulphur costs and lower volumes due to prolonged winter in Europe

2018 Targets on Track

2018 TARGETS

Reduce debt ratios while still investing in growth

Continuous improvement in the competitiveness of our mineral assets in Europe, China and Israel

Focus on specialty agriculture growth

Continue both organic and inorganic growth of Specialty businesses

Grow post-divestment Advanced Additives

Return to growth trajectory in Food Specialties

Maintain high profit margins at Industrial Products

Complete transition to Polysulphate at ICL UK.

Executing long-term infrastructure CapEx projects

Q1 2018

Net Debt/EBITDA = 2.3 (2.9 in Dec. 2017)*

Positive operating margins at ICL Iberia and YPH JV, significant reduction in operating loss at ICL-UK

• Record Q1 profit for Specialty Fertilizers
• ICL Specialty Solutions' sales up 7.5%, operating income up by 11.3%
• Sales excluding divested businesses up 9%
• Sales up 21%, operating income up 50%
• Operating income margin at 25%
• On track to be concluded by mid-2018
• Salt harvest, P9, ICL Iberia

Setting the Base for a Promising Future

Strategy Targets

Growth in Semi-Specialty

Growth through leadership in Advanced Crop Nutrition

Financial Results

Kobi Altman CFO

Main Financial Figures and Analysis

\$ millions	Q1 18	Q1 17	% change	Q4 17	% change
Sales	1,404	1,295	8.4%	1,361	3.2%
Adjusted operating income	151	116	30.2%	168	(10.1)%
Adjusted net income	106	68	55.9%	142	(25.4)%
Operating income	985	116	749.1%	189	421.2%
Net income	928	68	1264.7%	155	498.7%
Free cash flow*	(91)	104	(187.5)%	137	(166.4)%
Purchases of property, plant & equipment & intangible assets	(127)	(106)	(19.8)%	(140)	9.3%

* See appendix for reconciliation of free cash flow

Numbers may not add due to rounding and set offs

Business Line Contribution to Operating Income

Working Capital Financing Growth

US\$ Million	Q1 2018
Adjusted net income	106
Depreciation and amortization	97
Other adjustment to net income	(12)
Total changes to working capital*	(155)
Net cash provided by operating activities	36
Purchases of PP&E & intangible assets	(127)
Free cash flow**	(91)

• Increase in sales led to higher trade receivables
• Demand required higher inventory
• Free cash flow expected to turn positive in the rest of the year

* Represents change in inventory + trade and other receivables + trade and other payables as per the statement of cash flows

** See Appendix to the presentation for a reconciliation of free cash flow

Effective Tax Rate

\$ million	Q1 18	2017
Adjusted income before tax	137	528
Normalized tax rate (including resource tax)	23%	26%
Normalized tax expenses	32	136
Carryforward losses not recorded for tax purposes	3	19
	35	151
	26%	29%
Other items (mainly exchange rate impact)	(2)	1
Adjusted income tax	33	156
Actual Effective tax rate	24%	30%

Specialty Solutions Bridge Analysis

Sales (\$M) Segment operating income (\$M)

Essential Minerals Bridge Analysis

Sales (\$M) Segment operating income (\$M)

Excluding G&A and unallocated expenses

Numbers may not add due to rounding and set offs

Investing in Our Future and Creating Financial Flexibility

Strategic CAPEX Financed Through Operating Cash Flow

Investing in our future and creating financial flexibility to support growth

See appendix to this presentation for reconciliation of free cash flow

Q1 2018 Key Takeaways

Thank You

Appendix

Specialty Solutions Segment

Specialty Solutions' Business Line SalesQ1 2018

Numbers may not add due to rounding and set offs

21

Essential Minerals Segment

Essential Minerals' Business Line Sales Q1 2018

Potash Business Stand-Alone Bridge Analysis Q1 2018

Sales (\$M) Business unit operating income (\$M)

Excluding G&A and unallocated expenses

Numbers may not add due to rounding and set offs

Free Cash Flow Reconciliation

	Q4 2016	Q1 2017	Q2 2017	Q3 2017	Q4 2017	Q1 2018
Cash flow from operations	257	195	199	176	277	36
Purchase of property, plant and equipment and intangible assets	(138)	(106)	(113)	(98)	(140)	(127)
Dividend from investees	8	3	-	-	-	-
Proceeds from sale of fixed assets	-	12	-	-	-	-
Free Cash Flow	127	104	86	78	137	-91

Non GAAP Financial Measures

We disclo se in this Quarterly Repo rt non-IFRS financial measures titled adjusted operating income, adjusted net income att ributable t o the Company's shareholder s, adjusted EBITDA and free cash flow. Our management uses adju sted operating income, adju sted net income att ributable t o the Company's shareholder s and adju sted EBITDA t o facilitate operating per fo rmance compariso ns from period to period and present free cash flow t o facilitate a review o f our cash flows in period s. We calculate our adju sted operating income b y adju sting our operating income to add certain items, as set fo rt h in t he reconciliation table "Adju stment s to repo rted operating and net income" abo ve. Certain o f t hese items may recur. We calculate our adju sted net income att ributable to t he Company's shareholder s b y adju sting our net income attributable to t he Company's shareholders to add certain items, as set fo rt h in t he reconciliation table "Adju stment s to reported operating and net income" above, excluding t he total tax impact o f such adju stment s and adju stment s att ributable to t he non-cont rolling interest s. We calculate our adju sted EBITDA by adding back to t he net income att ributable to t he Company's shareholder s t he depreciation and amo rtization, financing expenses, net, taxes o n income and t he items presented in t he reco nciliation table "Adju sted EBITDA fo r t he periods o f activit y" below which were adju sted fo r in calculating t he adju sted operating income and adju sted net income att ributable to t he Company's shareholders. We calculate our free cash flow as our cash flows from operating activities net o f our purchase o f propert y, plant, equipment and intangible asset s, and adding Proceeds from sale o f propert y, plant and equipment and Dividend s from equit y-accounted investees during such period as presented in t he reconciliation table under "Calculation o f free cash flow".

You should not view adju sted operating income, adju sted net income att ributable to t he Company's shareholder s o r adju sted EBITDA as a substit ute fo r operating income o r net income att ributable t o the Company's shareholder s determined in acco rdance wit h IFRS, o r free cash flow as a substit ute fo r cash flows from operating activities and cash flows u sed in investing activities, and you should note t hat our de finitions o f adju sted operating income, adju sted net income att ributable to t he Company's shareholder s, adju sted EBITDA and free cash flow may differ from t ho se used b y ot her companies. However, we believe adju sted operating income, adju sted net income att ributable to t he Company' s shareholder s, adjusted EBITDA and free cash flow provide u se ful in fo rmation t o bot h management and invest o rs by excluding certain expenses t hat management believes are not indicative o f our ongoing operatio ns. In particular fo r free cash flow, we adju st our Capex to include any Proceeds from sale o f propert y, plant and equipment becau se we believe such amount s o ffset the impact o f our purchase o f propert y, plant, equipment and intangible asset s. We furt her adju st free cash flow t o add Dividend s from equit y-accounted investees because receipt o f such dividends a ffect s our residual cash flow. Free cash flow does not reflect adju stment fo r additional items t hat may impact our residual cash flow fo r discretionar y expendit ures, such as adju stment s fo r charges relating t o acquisitions, ser vicing debt obligations, changes in our depo sit account balances t hat relate t o our investing activities and ot her non-discretionar y expendit ures. Our management uses t hese non-IFRS measures t o evaluate t he Company's bu siness st rategies and management 's per fo rmance. We believe t hat t hese non-IFRS measures provide u se ful info rmation t o invest o rs becau se t he y improve t he comparabilit y o f t he financial result s between periods and provide fo r greater t ransparency o f key measures used t o evaluate our per fo rmance.

We present a discu ssio n in t he period-t o-period compariso ns o f t he primar y driver s o f changes in t he company's result s o f operations. This discu ssio n is based in part o n management 's best estimates o f t he impact o f t he main t rends in it s businesses. We have based t he following discussio n o n our financial statement s. You should read t he following discussion t oget her wit h our financial statement s.