INVESTOR PRESENTATION IMPORTANT LEGAL NOTES ICL- AT A GLANCE $5.6 B - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION IMPORTANT LEGAL NOTES ICL- AT A GLANCE $5.6 B - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION IMPORTANT LEGAL NOTES ICL- AT A GLANCE $5.6 B 44 ~11,000 TOP 3 (1) $5.7 B >4.0% #2 BBB- DNA OF LEADERSHIP #1 #3 #1 #1 #1 #1 LEADERSHIP STRATEGY PRESENT IAS POTASH LEADERSHIP STRATEGY Phosphate Solutions

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SLIDE 1

INVESTOR PRESENTATION

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SLIDE 2

IMPORTANT LEGAL NOTES

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SLIDE 3

44 $5.6B $5.7B #2

TOP 3

~11,000

ICL- AT A GLANCE

>4.0%

(1)

BBB-

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SLIDE 4

#1 #1 #1 #1 #1 #3

DNA OF LEADERSHIP

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SLIDE 5

PRESENT

LEADERSHIP STRATEGY

POTASH IAS

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SLIDE 6

essential ingredients

LEADERSHIP STRATEGY

PRESENT

Phosphate Solutions division Potash division Industrial Products division IAS - Innovative Ag Solutions division

POTASH IAS

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SLIDE 7

ICL BUSINESS LEADERSHIP

Potash business cost cost by Site and by Company2

ICL 24%

ICL

Dead Sea

Market Share – Specialty Phosphates – Europe, NA, and LatAm1

ICL

POTASH IAS

(Dead Sea) 39% Albemarle (Dead Sea) 17% USA (ALB, LXS) 23% Chinese producers 10% Others 11%

Global Bromine Production Capacity1

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SLIDE 8

Growth trend in Most Main Operational Parameters – YTD View

80 180 280 380 480 580 680 1-9/2016 1-9/2017 1-9/2018 1-9/2019 1-9/2016 1-9/2017 1-9/2018 1-9/2019 1-9/2016 1-9/2017 1-9/2018 1-9/2019
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SLIDE 9

ORGANIZATIONAL STRUCTURE ALIGNED WITH STRATEGY

Phosphate Solutions division1,2 Industrial Products division1 IAS - Innovative Ag Solutions division1

POTASH IAS

Potash division1

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SLIDE 10

LEADERSHIP STRATEGY

FUTURE

POTASH

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SLIDE 11

Q3 2019 SUMMARY

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Q3 2019 Highlights

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

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SLIDE 13

Q3 2019 Results Summary

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Q3 2019 KEY TAKEAWAYS

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SLIDE 15

LEADERSHIP STRATEGY

POTASH

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INDUSTRIAL PRODUCTS

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THE GLOBAL BROMINE MARKET LEADER 175K TONNES

NO.1

SOLID LEADERSHIP

240K TONNES

NO.1

BROMINE PRICES IN CHINA

INDUSTRIAL PRODUCTS

UNIQUE ADVANTAGE

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SLIDE 18

MAIN GOALS

A WORLD LEADER AND BEYOND

INDUSTRIAL PRODUCTS

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SLIDE 19

LEADERSHIP STRATEGY

POTASH

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SLIDE 20

INCREASE YIELDS AND FEED THE WORLD

POTASH

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10 100 200

Wo Worl rld C Crop rop P Produc roduction
  • n
in 2 2005-20
  • 2007
Expansi sion
  • n o
  • f A
Ara rable La Land Crop Ro Rota tati tion
  • n
Incr crease se i in Yi Yields ds Wo Worl rld C Crop rop P Produc roduction
  • n
in 2 2050 50

POTASH

0.16 0.24 0.32 0.40 0.48 3 4 5 6 7 8 9 10 11 1961 1972 1983 1994 2005 2016 2027E 2038E 2049E World population (Bn) Arable land (Ha/Person)
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SLIDE 22

ICL’S UNIQUE POSITION

4.9 MILLION TONNES

STRONG POSITION

POTASH

80% PRODUCED FROM

THE DEAD SEA

WELL ESTABLISHED IN GROWING MARKETS LOWER COST AND FASTER TIME-TO-MARKET

NO.6

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SLIDE 23

ICL’S UNIQUE POSITION

4.9 MILLION TONNES

STRONG POSITION

POTASH

LOWER COST AND FASTER TIME-TO-MARKET

China India IL Europe Brazil US

WELL ESTABLISHED IN GROWING MARKETS

80% PRODUCED FROM

THE DEAD SEA NO.6

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SLIDE 24

POTASH OUR GOALS TOP-3

5MT

10%

1M

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SLIDE 25

LEADERSHIP STRATEGY

POTASH

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PHOSPHATE SOLUTIONS - FOOD

ESSENTIAL MINERALS BITE TASTE & MOUTH FEEL TEXTURE & LAST LONGER RISE

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SLIDE 27

Oil drilling Mining Oral care Cleaning products Metals Leather Construction Asphalt Paints & coatings

  • INDUSTRIAL

PHOSPHATE SOLUTIONS

Water treatment

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UNIQUE BACKWARD INTEGRATION MODEL 5M TONNES

Over 90% of phosphate rock

AND VALUABLE INNOVATIVE PRODUCTS

ICL’S RECIPE FOR LEADERSHIP PHOSPHATE SOLUTIONS

1.2M TONNES 290K TONNES

ICL 24%

WITH A LEADING MARKET POSITION

Source: ICL estimates (2017)

Market Share – Specialty Phosphates – Europe, NA, and LatAm1

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SLIDE 29

OUR GOALS PHOSPHATE SOLUTIONS

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SLIDE 30

LEADERSHIP STRATEGY

POTASH

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SLIDE 31

0.4 1.8

FAST GROWING INDUSTRY

1.8 3.2

SPECIALTY FERTILIZERS - THE FOUNDATION FOR THE FUTURE ~850K TONNES

OVER 300

INNOVATIVE AG SOLUTIONS CREATING LEADERSHIP

FASTEST GROWING DIVERSIFIED PORTFOLIO

25 YEARS

Coated Fertilizers Solubles / Straights Liquids SRF CRF Solubl e NPK MAP/ MKP SOP/CN NOP Bulk Liquids Foliar Liquids ICL-SF ^ ^ ^ ^ ^ ^ Compo ^ ^ ^ ^ Haifa ^ ^ ^ ^ YARA ^ ^ ^ SQM ^ ^ ^ ^ Kingenta ^ ^ ^ ^
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THE PERFECT STORM

CHANGE GROW MORE WITH LESS GROUNDBREAKING SOLUTIONS

2B MORE PEOPLE

WITHIN 20 YEARS

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INNOVATIVE AG SOLUTIONS

UNIQUE R&D CAPABILITIES GET CLOSER TO GROWER PORTFOLIO GROWTH INNOVATION DIGITAL TRANSFORMATION

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PRESENT&FUTURE

LEADERSHIP STRATEGY

POTASH

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THANK YOU

visit us at www.icl-group.com

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Appendix

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ICL- 90 YEARS OF HISTORY

Focusing on innovation and solidifying leadership 2000s - Establishing & growing operations in Israel 1920s - 1970s Consolidating & expanding globally 1970s - 2014

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Production site Sales & marketing office

35 35%* %* 1% 22 22% 12 12%

* Percentage of sales by main geographical areas, 2018

LEADING GLOBAL COMPANY

2% 3% 25 25%

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SLIDE 39

proximity to ports & customers

STRATEGIC LOCATIONS

innovation

STARTUP NATION

accumulated over decades

KNOW-HOW UNIQUE ASSETS

ICL – STRATEGIC ADVANTAGES

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CORE VALUES

TOP TIER SAFETY PERFORMANCE AND ENVIROMENTAL RESPONSIBILITY EMPLOYER OF CHOICE LEVERAGING TECHNOLOGY AND INDUSTRIAL KNOW HOW TO MEET THE NEEDS OF OUR CUSTOMERS ADOPTING BEST PRACTICES FOR CORPORATE GOVERNANCE

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SUSTAINABILITY

Success in Emission Reduction

$121M

Top-Tier Environmental & Safety Management SILVER ranking Sustainable Procurement ‘Platinum+’ Ranking

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Growth trend in Most Main Operational Parameters

50 100 150 200 250 300 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 0% 5% 10% 15% 20% 25% 30% 50 100 150 200 250 300 350 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 50 100 150 200 250 300 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
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Decreasing Net Debt/EBITDA Ratio

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Successful Optimization of Debt Structure

2019 2020 2021 2022 2023 2024 2025 2026 2038

88 28 341 122 273 475 46 600 320

Loans & debentures Securitization

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Effective Tax Rate

Exchange rate impact and other items Adjusted tax expenses

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Segment Profit Before and After G&A Expenses

Operating Income Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Industrial Products (Bromine) Profit before allocated G&A expenses 77 76 77 73 303 78 94 95 83 350 108 105 99 Allocated G&A expenses (income) 11 17 14 14 56 12 13 12 13 50 11 12 11 Segment profit 66 59 63 59 247 66 81 83 70 300 97 93 88 Potash Profit before allocated G&A expenses 37 61 65 119 282 62 76 97 158 393 98 123 99 Allocated G&A expenses (income) 21 21 21 21 84 19 20 19 20 78 19 18 16 Segment profit 16 40 44 98 198 43 56 78 138 315 79 105 83 Phosphate Solutions Profit before allocated G&A expenses 37 37 52 23 149 52 55 63 38 208 63 58 57 Allocated G&A expenses (income) 26 22 24 24 96 24 24 23 24 95 28 26 25 Segment profit 11 15 28 (1) 53 28 31 40 14 113 35 32 32 Innovative Ag Solutions Profit before allocated G&A expenses 20 19 9 8 56 25 23 7 2 57 21 21 6 Allocated G&A expenses (income) 7 6 7 7 27 7 7 8 6 28 8 9 8 Segment profit 13 13 2 1 29 18 16 (1) (4) 29 13 12 (2) Other & elimination Profit before allocated G&A expenses 2
  • (4)
(3) (5) (2) 4 2 (5) (1) 14 (12) 2 Allocated G&A expenses (income) 1 (1) (6) 4 (2) 8 (2) 1 (1) 6 (3)
  • 2
Segment profit 1 1 2 (7) (3) (10) 6 1 (4) (7) 17 (12)
  • ICL
Total adjusted operating income before G&A expenses 173 193 199 220 785 215 252 264 276 1,007 304 295 263 G&A expenses 66 65 60 70 261 70 62 63 62 257 63 65 62 Adjusted operating income - excl. divestments 107 128 139 150 524 146 190 200 214 750 241 230 201 Divested businesses' contribution* 9 25 76 18 128 5 (2)
  • 3
  • Adjusted operating income
116 153 215 168 652 151 188 200 214 753 241 230 201
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Peer Comparison YTD 2019

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✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

RECENT DEVELOPMENTS @ ICL

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RECENT DEVELOPMENTS @ ICL

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

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RECENT DEVELOPMENTS @ ICL

✓ ✓ ✓

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Industrial Products

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Industrial Products Geographical Sales Distribution

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SLIDE 53

Industrial Products Sales Distribution

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Industrial Products Supply Chain

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Flame Retardants 41%

Brominated
  • rganic
intermediates & Industrial 34% Clear brine fluids 15% Biocides 7% Mercury Control 4% 280 280 120 120 170 165 70 50 80 90 2018 2023

Industrial Products Leading the Global Bromine Market

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Major Trends and ICL Solutions

Trends ICL’s Solutions

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SLIDE 57

Potash

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Total Fertilizer Use by Crop at Global Level

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World Main Crops Long Term Forecast Consumption, Stock and Stock to Use Ratio

Consumption

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World Grains Production & Consumption: Current Stock to Use Ratio

Billion Tonne

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ICL’s Potash Market Share in Fast Growing Markets

10% 25% 25%

16%

20% 4% APC BPC Canpotex ICL Uralkali K+S 5% 20% 23% 9% 29%

14%

SQM BPC Uralkali K+S Canpotex ICL 20% 23% 31%

12%

9% 5% Uralkali BPC Canpotex ICL APC Others

India Brazil China

31% 16% 13% 23%

15%

2% Canpotex Uralkali APC BPC ICL K & S 30% 24% 2% 19%

12%

13% Canpotex Uralkali SQM BPC ICL K&S 21% 19% 38% 4%

11%

3% 4% Uralkali BPC Canpotex APC ICL K+S Other
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Positive Potash Spot Pricing trend

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ICL UK: The World’s Only Producer of Polysulphate

▪ ▪ ▪ ▪ ▪ ▪

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Phosphate Solutions

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Phosphate Solutions: Backward Integrated Value Chain

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Phosphoric Acid Pricing Trends

%

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2.5M TONNES 480K TONNES TARGETING A SHIFT TOWARDS SPECIALTIES ▪ ▪ 630K TONNES 65K TONNES

Growth in production, improving market conditions and efficiency measures resulted in a pos

  • sitive

itive oper

  • perat

atin ing g in income come1 in in 2018 2018

GROWING PRODUCTION AND FINANCIAL METRICS UNIQUE BACKWARD INTEGRATION MODEL

YPH JV – ICL’s Integrated Phosphate Platform in China

2016 2017 2018 Q3’19 YTD

$ million

377 363 387 273 Sales (76) (19) 9 19 Operating income1

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We Have Built a World-Class Advanced Additives Portfolio

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Vast Product Portfolio Serving a Variety of End Food Additives Markets

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Food Specialties: Markets and Competition

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Innovative Ag Solutions

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ICL’s Leadership in the Specialty Fertilizers Market

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ICL Specialty Fertilizers: Our Strengths

▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

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Our Core Markets and Products Today

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Specialty Fertilizers and Bio Solutions Have Became An Important Part of the Ag Input

~$150bn

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ACADEMIC TECHNOLOGICAL BUSINESS

IAS LEVERAGING ISRAEL'S HIGH-TECH AND AGRI-TECH ECO SYSTEM

TARANIS

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ICL AIMS TO OFFER FARMERS CUTTING-EDGE SOLUTIONS

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SLIDE 78

THANK YOU

visit us at www.icl-group.com

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SLIDE 79

Reconciliation Tables (1/3)

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SLIDE 80

Reconciliation Tables (2/3)

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SLIDE 81

Reconciliation Tables (3/3)