Investor Presentation March, 2015 Safe Harbor All statements in - PowerPoint PPT Presentation

Investor Presentation March, 2015

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; natural disasters; failure to raise the water level in evaporation Pond 5 in the Dead Sea; accidents or disruptions at our seaport shipping facilities or regulatory restrictions affecting our ability to export our products overseas; labor disputes, slowdowns and strikes involving our employees; currency rate fluctuations; rising interest rates; general market, political or economic conditions in the countries in which we operate; pension and health insurance liabilities; price increases or shortages with respect to our principal raw materials; volatility of supply and demand and the impact of competition; changes to laws or regulations (including environmental protection and safety and tax laws or regulations), or the application or interpretation of such laws or regulations; government examinations or investigations; the difference between actual reserves and our reserve estimates; failure to integrate or realize expected benefits from acquisitions and joint ventures; volatility or crises in the financial markets; 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; litigation, arbitration and regulatory proceedings; and war or acts of terror. More detailed information about factors that may affect our performance may be found in “Risk Factors” in our registration statement on Form F-1 filed with the U.S. Securities and Exchange Commission on September 22, 2014. 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. This presentation includes certain non-GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable IFRS measures, which is available in the Appendix. 2

Unique Business Model Supports Strong Cash Flow Generation & Return of Capital to Shareholders Unique Portfolio Fully Integrated and Diversified Value Leading Positions in Concentrated Global of Mineral Assets Chain Markets with Strong Fundamentals Dead Sea Agriculture 52%* Potash Bromine Magnesium 67%* U.K. / Spain Mines Fertilizers Potash Formulation Polyhalite Chemistry 18%* Mining Performance Negev Desert, Yunnan* Products Engineered Materials 31% Phosphate 15%* Industrial Products Global Opportunities Processed Food 8% Potash Phosphate * Based on full year 2014 EBITDA * Based on full year 2014 external sales Efficiency improvements of $350M by the end of 2016 Growth opportunities 3 *subject to deal closure

Integrated Value Chains Provide Significant Synergies and Logistics Advantages Source Raw Materials Major Intermediate & Finished Products Phosphorus ( Penta) Elemental Sulfide Phosphorus Phosphate Salts Food Additives PCL 3 POCL 3 Food Grade Wildfire Extinguishers The Negev Phosphoric Acid Phosphate Fertilizer Grade Phosphoric Acid Rock Desert - Israel Special Grade Acid Phosphate Fertilizers Carnallite Potash The Dead Sea - Compound Fertilizers Israel Salt (NaCl) End Brine Crude Specialty Fertilizers Magnesium Magnesium Chloride Chlorine Pure Magnesium Solution Magnesia Elemental Magnesium Alloys Products (MgO) Polysulphate Bromine Magnesium Potash Mines - Chloride Salt (NaCl) Bromine Compounds UK & Spain Sylvanite Potash Chlorine based Biocides OPFRs & Others Performance Products DSM Product Sold Fertilizers Industrial Products 4

Global Potash Assets to Support Growth Potash Cash Cost Curve – FOB $ / Tonne, Excluding Royalties* ICL UK ICL DEAD SEA ICL IBERIA c. 2/3 of ICL’s effective capacity ICL AFRICA Cost Potash volume *Source: CRU Potash Cost Report 2013 Edition (December 2012), McKinsey & Company, ICL estimates Allana Potash (Ethiopia) ICL Dead Sea ICL Iberia ICL UK  16.4% Equity investment;   Strategically located  Close to Teesside Port – ICL’s largest and lowest cost  $435M investment in growth and Option to increase to 37% potash asset with near-infinite access to Northern Europe  Option value: increase  Increase annual polysulphate reserve life efficiency:  Facility consolidation- maintaining  stake only if return is Ability to stockpile outdoors (low production from 130,000 to attractive for shareholders cost) capacity, reducing costs per tonne 600,000 tonnes (capex:  Gradually increase capacity to 1.4M  Offtake agreement  Close to ports and key end markets ₤ 38MM)  Attractive economics   Improve capacity utilization Ongoing operational efficiency tonnes in the next 5 years while  Production expected measures, including labor reducing cost per tonne by ~25% while reducing costs per  Potential to further expand capacity by within less than 5 years reduction tonne  The first potash mine in  Potentially subject to new tax and additional 1M tonnes by 2024  Additional 1M tonnes expansion - Africa royalty regime in Israel as of 2017 subject to feasibility study Potential to increase total capacity by at least 2 million tonnes in the next decade, while reducing costs 5

World’s Largest Elemental Bromine Producer The Dead Sea integrated operations provide the highest concentration of Bromine which supports its world leading cost position ICL’s leading market position Access to Largest and Richest Known Source of Bromine Grams/Liter 2014 Estimated Production Capacity Other 10.0 – 11.0 8% China ICL 13% 38% Chemtura 12% 2.5 – 5.5 3.5 – 4.5 29% Albemarle 0.5 – 0.9 0.03 – 0.05 0.02 – 0.03  China’s reserves are depleting Underground Sea Water Shallow Sea Salt Lake Underground Dead Sea  ICL owns the largest fleet of isotanks Wells (China, Japan) (Ukraine) (India) Wells Operations (China) (U.S.) (Israel, Jordan) in the world Source: ICL estimates, MarketsandMarkets 6

Phosphate – Strengthening our Backward Integration and Geographical Footprint Resource expansion Existing operations Strategic alliance with China’s Yunnan Yuntianhua to leverage Phosphate used in phosphate fertilizers, compound and ICL’s end -to-end phosphate business model specialty fertilizers as well as food additives Closing expected by Q1 2016 Potential Production Capacity - Israel (bulk products): • Phosphate rock: ~4.5 million tonnes Public ICL YTH Group Shareholders • Phosphoric acid: ~600 thousand tonnes 15.0% 39.3% 45.7% Phosphate Cost Curve (abstract model)* 3 Yunnan Yuntianhua 1 2 50.0% 50.0% JV Phosphate Volume *Source: CRU Phosphate Rock Cost Report, 2014 Edition (January 2014), ICL estimates 100.0% • World scale phosphate rock mine • Deal value: $452M Important initiatives in our phosphate business are: • Sales increase: ~$550M to ~$700M with ~100mT reserves • Almost $30M annual savings due to Rotem production • Rock capacity - 2.5mT p.a. • EBITDA margins from low teens to • Fertilizers – 850kT p.a. records in 2H2014 and the early retirement plan high teens within 5 years • Phosphoric acid – 700kT p.a. • Estimates synergies: $30M p.a. • Further gains due to operational excellence expected in • Specialty fertilizers – 115kT p.a. • Approx. 7.4x EV/EBITDA multiple • Specialty phosphates – 65kT p.a. 2015 (year 2) • Purified phosphoric acid – 60kT p.a. • Cash EPS accretive in year 2 • Efforts to obtain new franchise in Barir field 7

Fulfilling Potash Demand Growth Potential Promoting balanced fertilization to improve economic benefits Specialty Fertilizer: Utilizing Growth Opportunities Business Characteristics  680 demonstration plots in 9 states and India  $770 Million sales in 2014 over 40 districts  Faster growing markets, relatively low capex  15-35% average increase in yields;  Strong sales network demonstrate benefit-to-cost ratios  Best-in-class R&D / technology between 13:1 and 43:1 Solutions  600 demonstration plots in 2014 Ethiopia  Water soluble fertilizers Offered through value  Several hundred additional plots in added nutrient mixtures  Control released fertilizers 2015 & blends  Liquid Fertilizers  Soil fertility mapping Markets Specialty Horticulture Turf Agriculture  Investment in R&D and branding Incremental Demand Can Result in Material Growth for ICL Approx. 250,000 tons of incremental annual ICL  Geographies and crops shipments required to grow at 5% p.a.  Supply chain excellence 8