ICL Group Ltd. — Investor Presentation 2016

Mar 17, 2016

Road Show Presentation

March 2016

Safe Harbor

• All statements in this communication, other than those relating to historical facts, are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements and projections are not guarantees of future performance and are subject to a number of assumptions, risks, projections and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements or projections. Important factors that could cause actual results to differ materially from our expectations include, among others: loss or impairment of business licenses or mining permits or concessions; volatility of supply and demand and the impact of competition; the difference between actual reserves and our reserve estimates; natural disasters; failure to raise the water level in evaporation Pond 5 in the Dead Sea; construction of a new pumping station; disruptions at our seaport shipping facilities or regulatory restrictions affecting our ability to export our products overseas; general market, political or economic conditions in the countries in which we operate; price increases or shortages with respect to our principal raw materials; delays in the completion of major projects by third party contractors; construction of a canal between the Red Sea and Dead Sea; labor disputes, slowdowns and strikes involving our employees; pension and health insurance liabilities; changes to governmental programs or tax benefits, creation of new fiscal or tax related legislation; higher tax liabilities; failure to integrate or realize expected benefits from mergers and acquisitions, organizational restructuring and joint ventures; currency rate fluctuations; rising interest rates; government examinations or investigations; disruption of our information technology systems or breaches of our data security; failure to recruit or maintain key personnel; inability to realize expected benefits from our cost reduction program according to the expected timetable; inability to access capital markets on favorable terms; cyclicality of our businesses; changes in demand for our fertilizer products due to a decline in agricultural product prices, lack of available credit, weather conditions, government policies or other factors beyond our control; decreases in demand for bromine based products and other industrial products; volatility or crises in the financial markets; cost of compliance with environmental legislative and licensing restrictions; hazards inherent to chemical manufacturing; litigation, arbitration and regulatory proceedings; insufficiency of insurance coverage; closing of transactions, mergers and acquisitions; war or acts of terror. We caution you that the above list of important factors is not comprehensive. We refer you to filings that we have made and will make with the TASE and the U.S. SEC, including under "Risk Factors" in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on March 16, 2016. Forward-looking statements and projections represent our views and are given only as of the date of this communication and we disclaim any obligation to update or revise them, whether as a result of new information, future events or otherwise, except as required by law.
• All information included in this document speaks only as of the date on which it is made, and we do not undertake any obligation to update such information afterwards.
• Some of the market and industry information is based on independent industry publications or other publicly available information, while other information is based on internal studies. Although we believe that these independent sources and our internal data are reliable as of their respective dates, the information contained in them has not been independently verified and we cannot assure you as to the accuracy or completeness of this information.

Our Vision: Fulfilling Humanity's Essential Needs

Rise of the middle class and standard of living across the globe Increased demand for and use of natural resources Environmental stewardship and We fulfill essential needs in 3 core end markets – Agriculture, Food and Engineered Materials by utilizing an integrated value chain based on specialty minerals

sustainability

ICL at a Glance

Company Snapshot

• ICL is a leading global specialty minerals company that operates a unique integrated business model to fulfil essential needs in three key end markets: Agriculture, Engineered Materials and Processed Food
• Utilizes sophisticated processing and product formulation technologies to produce downstream / value-added products
• Operates low-cost, geographically advantaged assets
• ~55% of production and more than 95% of sales outside of Israel

Key Statistics(2) Our Business Segments US\$Bn Equity 3.0 Market Capitalization 5.7 Net Debt 3.2 Enterprise Value 8.9 Main Shareholders Israel Corp 46.2% PCS 13.9% FY2015 FY2014 Revenue 5.4 6.1 Adj. EBITDA 1.4 1.3 % Margin 25% 22%

Our Business Mix and End Markets (1)

• Fertilizers: One of the world's largest producers of potash, phosphate-based fertilizers and specialty fertilizers
• Performance Products: Produces, markets and sells a broad range of downstream phosphate-based food additives and advanced additives
• Industrial Products: Extracts bromine and magnesium from the Dead Sea and produces and markets bromine, magnesium and phosphorus compounds

1 Excludes adjusted EBITDA attributable to Other and eliminations; may not sum to 100% due to rounding

2 Market data as of March 13, 2016; Net debt calculated as total debt less cash, cash equivalents and short term investments

3 Including inter-company sales

	Strategy Implementation
	2015 Achievements	Plans for 2016
   	New culture of efficiency after strike in the Israeli sites \$275 million run-rate savings (vs. 2013) Potash cost per tonne reduction Continued profitability improvements in phosphates	 Continue cost reduction including labor  Continue procurement savings trajectory  Updated 2016 savings target - \$400 million vs. 2013  YPH JV - execute integration plan  Additional cash flow optimization measures
       	YPH JV Record production at ICL Dead Sea in Q4 Whey protein business integration Divestitures Bromine business turnaround FR-122P product launch Strategic cooperation agreement with the Government of Catalonia SOP and phosphate resources identified in Ethiopia and Namibia	 Ensure sustainability of low cost ICL Dead Sea higher potash production  Double PolysulphateTM business  Grow ICL Industrial Products margins  Focus on Food Specialties and Bromine value chain R&D

Integrated Value Chains Provide Significant Synergies

Our Mineral Asset base - Value Creation Through Continuous Improvements

Potash, Bromine, Magnesium

• Low cost in potash, the world's lowest in bromine
• Near-infinite reserve life potash and bromine
• Logistical advantages stockpiling ability, geographical position
• Increased production capability by ~10% through ongoing operational excellence
• Labor reduction to contribute ~\$30M from 2016

ICL Dead Sea ICL Iberia, ICL UK ICL Rotem

Potash PolysulphateTM

• Logistical advantages, significant long term expansion opportunities
• ICL Iberia to lower cost per tonne by ~€40 in 2020 vs. 2014
• ICL UK Reduce labor and cease potash production by end-2018
• PolysulphateTM produce 1 million tonnes and double operating income with margins over 30% by 2020

Phosphate

• Integrated value chain highly biased towards value added specialties
• Successful efficiency and operational excellence plan executed at Rotem

YPH JV

Phosphate

• YPH JV secures longterm reserves, expand business model into Asia and improves costs through synergies
• Transition to specialties to improve revenue and margins

Strategic Geographic Advantage Clear Service Advantage to Developed and Emerging Markets

Short mine-to-port distances and proximity to emerging markets

		Distance	Destination (Days)
	Country of Departure	Mine-to-Port (km) (1)	China	India	Brazil
	Israel	~200	23	11	22
	UK	~30	34	22	20
	Spain	~85	27	15	17
	Germany	~350	34	23	20
	Russia / Belarus	~600	39	27	25
	Canada West Coast	~1,700	35	47	43

• Shorter mine-to-port distances and shorter shipping routes to emerging markets results in lower costs both for land and maritime transportation, as well as faster time to markets

1 Israel based on average from Dead Sea to Port of Eilat and Ashdod; Germany based on Werra to Port of Hamburg and Bremerhaven; Canada based on Saskatchewan to Port of Vancouver; Russia based on Starobin to Port of Klaipeda; Spain based on Cabanasas Mine to Port of Barcelona; UK based on Cleveland Potash, Saltburn-by-the-Sea to Teesport Commerce Park

Commodity Business

End Markets

Segments

Business Units Potash Fertilizers

Phosphate Fertilizers

Contribution to sales*

~\$1,500M ~\$1100M

* 2015, including inter-segment sales

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

POLAR
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Potash Phosphates

CAGR 2014-2020	Sales	Adj. O/I
Potash	~0%	1-3%
Phosphates	5-7%	8-10%

Adjusted Operating Income (\$M)

* Assuming flat potash and phosphate prices vs. Q4 2015

ICL Iberia – Consolidation and Expansion

• Phoenix I+ II (2020): capacity expansion of Suria to 1,080K tonnes, closure of Cabanasas mine, expansion of granular capacity to 1,030K tonnes.

• Phoenix III (2020): new crystallization plant aimed to expand Suria's Center capacity by extra 200K tonnes of KCl and 500K tonnes of NaCl

• Phoenix IV (long term potential): a Brownfield project targeted to extend Suria's Center production capacity by additional 1M tonnes of KCl

• Agreement with Akzonobel to produce and market 1.5M tonnes of vacuum Salt and 50K tonnes of white potash annually

Specialty Business

* 2015, including inter-segment sales

Transforming Into The World's Leading Specialty Phosphate Player 6,500

• New market supported by Chinese government policy
• Grow sales in soluble MAP, MKP and Light Specialties

• Build new CRF and WSNPK plants in China

• Volume increase of about 15%

• New multi-ingredient blending plant and lab in China
• Leveraging ICL's expertise to build a new low cost purified acid plant

Specialty Fertilizers Food Specialties Advanced Additives Phosphate Fertilizers

• Strengthen ICL PP base in the Asian market
• Technical grade phosphoric acid volume growth, in addition to Fosbrasil

• Build up niche market applications

• Secure long term phosphate reserves

• Expand ICL's commodity portfolio
• Establish a position in the Chinese and global commodity phosphates markets (DAP, MAP)

Specialty Commodity

* Increase in capacity compared to 2015 ** Includes N. America and Brazil

ICL Specialty Fertilizers: The Path for Faster than the Market Growth ~700 Global trends to drive 6-7% annual growth Regulatory pressure Zero growth in nutrient use from 2020 EU Nitrate Directive Environmental trends New grower practices Market segments Market Growth ICL CAGR Specialty Agriculture 5-6% ~10% Ornamental Horticulture 1-2% 4-6% Professional Turf 0% 6-8%

Market growth (CAGR)	Product line	Strategic initiatives
5%	Foliar	R&D supported growth
		Geographic expansion
9%	Solubles /Fertigation	Cost Position in MAP/MKP
	Controlled Release	NOP Plant
9%	Fertilizers	Water Soluble NPKs in China

Readily available new natural fertilizer containing four nutrients

• Over 200 million tonnes resources in the ICL UK potash mine
• Low production cost allows attractive economics for farmers
• Environmentally friendly, no chemical processing or waste products, suitable for chloride sensitive crops and for organic agriculture
• Increased market acceptance: ~120k tonnes sold in 2015.
• PolysulphateTM addresses new market niches and replaces more costly existing products
• Long term potential up to 3 million tonnes

PolysulphateTM production plan K Tonnes

Transition to PolysulphateTM - Improving cash contribution

• Operating income expected to double by 2020 vs. 2015
• Operating margins expected to increase to over 30% by 2020
• Immediate restructuring expected to contribute \$30 million annually, starting from 2H2016

Specialty Business Units' Targeted Top and Bottom Line Growth

Sales (\$M)

	CAGR 2014-2020	Sales	Adj. O/I
ICL Performance	Food specialties	8-10%	9-11%
Products	Advanced additives	3-5%	8-10%
ICL Industrial	Industrial solutions	~0%	1-3%
Products	Flame retardants	5%	30-40%
	PolysulphateTM	30-50%	60-80%
ICL Fertilizers	Specialty Fertilizers (Incl. SOP, NOP)	8-10%	13-15%

Financials

• The Company will target measures that are expected to generate additional \$50 million in cash flow through improved working capital and other measures.
• Capital expenditures (excluding acquisitions) are targeted not to exceed \$650 million per year over the next several years, which will be lower than the \$700 million to \$800 million previously targeted.
• Due to the cost savings and cash reductions specified and based on the current outlook for the business environment, ICL intends to target debt levels in an absolute amount that would not exceed current levels.
• The Board of Directors will re-examine the Company's current dividend policy.

\$ millions	Q4 15	Q4 14	% change	2015	2014	% change
Revenues	1,427	1,403	1.7%	5,405	6,111	(11.6)%
Adjusted operating income	233	201	15.9%	994	960	3.5%
Net income	96	86	11.6%	509	464	9.7%
Adjusted net income	180	108	66.7%	699	695	0.6%
Cash flow from operations	56	310	(81.9)%	573	893	(35.8)%
External Potash sales (thousand tones)	1,416	1,150 Q4 2015 Sales	23.1%	4,259	5,034	(15.4)%

Q4 2015 Financials Q4 2015 Highlights

• Higher potash volumes, operational excellence deliveries and bromine value chain returns more than offset lower fertilizer prices in Q4.
• Efficiency and cost reduction initiatives will continue beyond 2016.
• Strengthening ICL's integrated value chain driven by specialty businesses.

22

*Labor cost reduction at ICL Dead Sea and ICL Neot Hovav

Strong EBITDA

Adjusted EBITDA By Segment

USD millions	FY2010	% of Total EBITDA(2)	FY2011	% of Total EBITDA(2)	FY2012	% of Total EBITDA(2)	FY2013	% of Total EBITDA(2)	FY2014	% of Total EBITDA(2)	FY2015	% of Total EBITDA(2)
Fertilizers
Potash	938	58.2%	1,288	57.9%	1,107	56.9%	841	53.6%	679	49.6%	648	47.9%
Fertilizer and Phosphates	147	9.1%	313	14.1%	264	13.6%	257	16.4%	303	22.1%	263	19.4%
Industrial Products	258	16.0%	348	15.6%	279	14.3%	225	14.3%	204	14.9%	202	14.9%
Performance Products	225	14.0%	231	10.4%	222	11.4%	242	15.4%	183	13.4%	241	17.8%

1 Operating cash flow adjusted for one-time \$108 million taxes paid due to Trapped Earnings Law

2 Excludes Adjusted EBITDA attributable to Other and eliminations; does not sum to 100% due to rounding

Current Debt Summary

Debt Summary			Leverage Profile(3) (4)
USD million	31/12/15	31/12/14	Net Debt /
Total Debt	3,478	2,906	LTM Adj. EBITA
Short Term Debt	673	603
Long Term Debt	1,740	1,239
Debentures	1,065	1,064	2.37 1.76
and Cash Equivalents(1) Cash	249	247(2)
Net Debt(3)	3,229	2,659
Unused credit lines	519		2014 2015
Investment Grade Rating

Debentures 31%

Other 6%

Type Split As of 31 Dec. 2015

• The bond is rated by S&P Israel "AAil" with a stable outlook
• The company is rated by Fitch and S&P "BBB" with a negative outlook

• ICL's debt exposure is in its functional currency USD
• Any non USD denominated debt is hedged accordingly

Source: Company filings

1 Includes short-term investments and deposits

2 Re-classified

3 Net debt calculated as total debt (short term debt plus long term debt plus marketable bonds) less cash and cash equivalents less short-term investments and deposits 4 Adjusted EBITDA defined as net income to Company shareholders plus depreciation and amortization plus net financing expenses plus taxes on income plus one-off items

Bank debt 63%

Thank you