ICL Group Ltd. — Investor Presentation 2016

Aug 10, 2016

Q2 2016 Results

Stefan Borgas | President & CEO

August 10, 2016

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, 2015, 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 U.S. GAAP 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 GAAP. Please refer to our quarterly Report on Form 6-F for the quarter ended June 30, 2016 filed with TASE and the SEC for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.

Q2 2016 Results Summary

• Solid results attributed to diversification into specialty businesses, which delivered over 15% growth driven by organic expansion
• Weak pricing and volume environment in Essential Minerals businesses partially offset by continuous improvement of cost structure
• Positive free cash flow supported by disciplined capital management

\$ millions	Q2 16	Q1 16	% change	Q2 15	% change
Sales	1,377	1,265	9%	1,196	15%
Adjusted operating income	163	115	42%	244	(33)%
Adjusted net income	132	85	55%	171	(23)%
Adjusted EPS	0.10	0.07	43%	0.13	(23)%
Operating cash flow	238	222	7%	325	(27)%
External potash sales (thousand tonnes)	1,010	883	14%	648	56%
Average potash selling price - FOB	221	235	(6)%	292	(24)%

See Q2 2016 press release for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income.

Business Environment & Major Developments

Essential Minerals
\$ million	Q2 2016	Q2 2015
Sales*	597	480
Adj. O/I**	90	176

• Competitive market environment continued to negatively impact potash and phosphate results
• Second half potash business is expected to experience higher volumes and lower average prices
• Second half 2016 phosphate results expected to improve, supported by volume growth and the contribution of the efficiency plan in our Chinese JV (YPH)

Specialty Solutions
\$ million	Q2 2016	Q2 2015
Sales*	842	718
Adj. O/I**	162	137

• Strong performance of ICL Industrial Products supported by higher volumes, lower raw material costs, efficiency gains and new products contributions
• Growth in specialty minerals, fire safety and oil additives business lines (P2S5) contributed to improved results of ICL Advanced Additives
• ICL Food Specialties benefited from dairy protein sales growth, geographical expansion and new products, which compensated for intensive competition in North America
• ICL Specialty Fertilizers demonstrated stability despite commodity headwinds, owing to higher volumes sold and expanding Chinese footprint

4

* Including inter-business units sales

** Excluding G&A and unallocated expenses

See Q2 2016 reports for a reconciliation of Adjusted operating income to operating income.

Divisional Evolution of Sales and Adjusted Operating Income

Excluding G&A and unallocated expenses

See Q2 2016 press release for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income.

Specialty Solutions Business Units' Targeted Top and Bottom Line Growth

Sales (\$M)

CAGR 2015-2020	Sales
Food Specialties	7-9%
Advanced Additives	3-5%
Industrial Products	4-7%
Specialty Fertilizers (Incl. NOP)	10-15%

Excluding G&A and unallocated expenses, including inter-BU sales

Financial Results

Kobi Altman CFO

Resilience Despite Weak Commodity Markets

\$ millions	Q2 16	Q1 16	% change	Q2 15	% change
Sales	1,377	1,265	9%	1,196	15%
Adjusted operating income	163	115	42%	244	(33)%
Net income	120	66	82%	75	60%
Adjusted net income	132	85	55%	171	(23)%
Cash flow from operations	238	222	7%	325	(27)%
Capital Expenditures	154	187	(18)%	251	(39)%
Free cash flow	85	38	124%	170	(50)%

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Numbers may not add up due to rounding and set offs See Q2 2016 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income.

* Strike impact Q1 2015

Essential Minerals Bridge Analysis

Sales (\$M) Adjusted Operating income (\$M)

* Strike impact Q2 2015

Excluding G&A and unallocated expenses

See Q2 2016 financial reports 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

Specialty Solutions Bridge Analysis

Sales (\$M) Adjusted Operating income (\$M)

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Excluding G&A and unallocated expenses

See Q2 2016 financial reports 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

Thank You

Appendix

Essential Minerals Division

15 ICL Dead Sea ~3,500 Employees Worldwide ICL UK Potash & Magnesium Business Unit ~70% Potash & Magnesium 2015 Sales of total ICL sales* * Not including inter-segment sales ~30% ICL Magnesium ICL Ethiopia** ** Project under evaluation ICL Iberia

Specialty Solutions Division

ICL Specialty Fertilizers Business Unit

Advanced Additives Business Unit – Vast Global Footprint and Backward Integration

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Fire Safety

ICL Food Specialties Businees Unit - Providing Solutions to the Global Food Industry

Essential Minerals: Business Units Performance

Potash Phosphates Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Sales Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Sales Adjusted Operatind Income

Excluding G&A expenses and unallocated expenses

See Q2 2016 press release for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income.

Specialty Solutions: Business Units' Sales Performance

Including inter-business unit sales

Essential Minerals' Business Unit Sales

Potash & Magnesium (\$M) Phosphates (\$M)

Numbers may not add due to rounding and set offs

Potash Business Stand-Alone Bridge Analysis

Excluding G&A and unallocated expenses

See Q2 2016 financial reports 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

Specialty Solutions' Business Unit Sales (\$M)

Specialty Fertilizers Food Specialties

Industrial Products Advanced Additives

Numbers may not add due to rounding and set offs See Q2 2016 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income.