ICL Group Ltd. — Investor Presentation 2016

May 18, 2016

Q1 2016 Results

Stefan Borgas | President & CEO

May 18, 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 Annual Report on Form 20-F for the year ended December 31, 2015 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.

ICL's Adapted Organization Structure: Enabling Strategic Growth

Aligning Organization Structure With Strategy

How will ICL benefit

• Focus capabilities based on business needs: operational efficiencies for Essential Minerals and commercial excellence for Industrial Solutions
• Improved execution capabilities
• Improved market orientation
• Facilitate enhanced efficiency delivery above \$400 million

Q1 2016 Results Summary

• Significant market uncertainty weighed on Essential Minerals businesses
• Downstream specialty businesses demonstrated stronger resilience
• Disciplined capital allocation supports short-term free cash flow and remains on high priority

\$ millions	Q1 16	Q1 15	% change	Q4 15	% change
Sales	1,265	1,403	(9.8)%	1,427	(11.4)%
Adjusted operating income	115	275	(58.2)%	233	(50.6)%
Adjusted net income	85	193	(56.0)%	180	(52.8)%
Adjusted EPS	0.07	0.15	(53.3)%	0.14	(50.0)%
Operating cash flow	222	66	236.4%	55	303.6%
External potash sales (thousand tonnes)	893	1,067	(16.3)%	1,416	(36.9)%
Average potash selling price - FOB	235	292	(19.5)%	268	(12.3)%

See Q1 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	Q1 2016	Q1 2015
Sales*	578	669
Adj. O/I	31	203

• Weak sales to China and India negatively affected potash profits
• ICL will benefit from its stockpiling ability at the Dead Sea when business resumes
• Phosphate prices under pressure due to competitive dynamics between Chinese and Moroccan producers
• Weak phosphate market in China impacting YPH results

Specialty Solutions
\$ million	Q1 2016	Q1 2015
Sales*	787	785
Adj. O/I	80	82

• Bromine business improvement driven by prices, costs and new products more than offset low volumes of clear brine fluids
• New Food products and customers are supporting growth in whey protein and blended solutions
• Economic situation, destocking and competition negatively impacted phosphate downstream businesses
• Low commodity prices partially flows through into downstream Specialty Fertilizers, Advanced Additives and phosphoric flame retardants

	ICL Fertilizers				ICL Industrial Products		ICL Performance Products
Segment results	\$ million	Q1 2016	Q1 2015	\$ million	Q1 2016	Q1 2015		\$ million	Q1 2016	Q1 2015
Q1 2016	Sales*	717	812	Sales*	286	283		Sales*	321	364
	Adj. O/I	41	220	Adj. O/I	47	32		Adj. O/I	25	30

* Including inter-segment/inter-business-units sales.

Industrial Products: Successful Strategy Implementation

…all bringing adjusted operating income to \$47 million with 17% operating margin

ICL Food Specialties: New Blended Solutions Driving Growth

Increased demand for blended solutions and dairy protein products from existing and new customers

ICL Customer Innovation Workshops in the US and Brazil

• More than 50 key Food Specialties customers attended
• Featured ICL Food Specialties ingredient technologies
• Unveiled newly expanded North America

and Brazil application centers

Levona® Brio for leavening, Salona® for flavor and JOHA® SE for stabilization of proteins

Research Chefs Association Conference

• New product technology: clear, lowpH whey protein beverage, meatless hot dogs
• Rising interest: over 400 samples
  • served in 4.5 hours

BEKABAKE® EF 2 100% egg replacement and BEKAPLUS® DP 302 to help emulsify proteins

New products sales continuous increase

ROVITARIS™ protein system providing an appetizing, healthy meat-free option BEKAPLUS® BP 900 for clear protein solution

Financial Results

Kobi Altman CFO

Challenging Business Environment Negatively Impacted Results

\$ millions	Q1 16	Q1 15	% change	Q4 15	% change
Sales	1,265	1,403	(9.8)%	1,427	(11.4)%
Adjusted operating income	115	275	(58.2)%	233	(50.6)%
Net income	66	217	(69.6)%	96	(31.3)%
Adjusted net income	85	193	(56.0)%	180	(52.8)%
Cash flow from operations	222	66	236.4%	56	296.4%
Free cash flow	38	(72)		(92)
Capital Expenditures	163	222	(26.6)%	529	(69.2)%

* Strike impact Q1 2015

Numbers may not add up due to rounding See Q1 2016 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income.

Sales by Business Unit

Specialty Solutions Take Front Row Amid Weakness in Commodity

28%

71%

Potash Bridge Analysis

See Q1 2016 financial reports for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income.

Phosphate and Specialty Fertilizers Sales (\$M) Adjusted Operating income* (\$M) 474 ^{4 13 24 3 3}

See Q1 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

Industrial Products

See Q1 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

Performance Products

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

See Q4 2015 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

Efficiency Initiatives and Cash Flow Optimization

2016E efficiency gains contribution breakdown*

Efficiency gains contribution*

Improving working capital to generate additional \$50M in cash flow.

CapEx not to exceed \$650M in 2016-2017

* Compared to 2013

475-500

Net debt*	~\$3.5B
Available credit lines	~\$1.0B

* Including approx. \$300 million securitizations

• Dividend policy adapted to current market environment: payout ratio up to 50% of annual adjusted net income
• New dividend policy to provide certainty to shareholders while keeping ICL's financial strength intact
• Policy will reviewed once market conditions stabilize

Thank You