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

• ur 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

• therwise, 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

• f Mineral Assets

Fully Integrated and Diversified Value Chain Leading Positions in Concentrated Global Markets with Strong Fundamentals

Negev Desert, Yunnan* U.K. / Spain Mines Dead Sea

Fertilizers Industrial Products Performance Products

Mining Chemistry Formulation

Potash Bromine Polyhalite Potash Phosphate Magnesium

Agriculture Processed Food Engineered Materials Global Opportunities

Potash Phosphate

3

52%* 31% 8% * Based on full year 2014 external sales 67%* 15%* 18%* * Based on full year 2014 EBITDA

Efficiency improvements of $350M by the end of 2016

Growth opportunities

*subject to deal closure

Integrated Value Chains Provide Significant Synergies and Logistics Advantages

4

The Negev Desert - Israel

Phosphate Fertilizers Fertilizer Grade Phosphoric Acid Food Grade Phosphoric Acid Salt (NaCl) Phosphate Salts Pure Magnesium Magnesium Alloys Compound Fertilizers Salt (NaCl) Potash Specialty Fertilizers Chlorine based Biocides Bromine Compounds Magnesium Chloride Solution Magnesium Chloride

Raw Materials

Potash

Potash Mines - UK & Spain

Sylvanite Crude Magnesium

Fertilizers Industrial Products Performance Products DSM Product Sold

End Brine Elemental Bromine Phosphate Rock Chlorine Elemental Phosphorus Special Grade Acid OPFRs & Others Magnesia Products (MgO)

Source Major Intermediate & Finished Products

Wildfire Extinguishers Food Additives Phosphorus ( Penta) Sulfide Polysulphate Carnallite PCL3 POCL3

The Dead Sea - Israel

Global Potash Assets to Support Growth

5 ICL IBERIA ICL UK

Potash Cash Cost Curve – FOB $ / Tonne, Excluding Royalties*

ICL AFRICA

Allana Potash (Ethiopia)

 16.4% Equity investment;

Option to increase to 37%

 Option value: increase

stake only if return is attractive for shareholders

 Offtake agreement  Attractive economics  Production expected

within less than 5 years

 The first potash mine in

Africa ICL Dead Sea



ICL’s largest and lowest cost potash asset with near-infinite reserve life



Ability to stockpile outdoors (low cost)



Close to ports and key end markets



Ongoing operational efficiency measures, including labor reduction



Potentially subject to new tax and royalty regime in Israel as of 2017 ICL Iberia

 Strategically located  $435M investment in growth and

efficiency:

• Facility consolidation- maintaining

capacity, reducing costs per tonne

• Gradually increase capacity to 1.4M

tonnes in the next 5 years while reducing cost per tonne by ~25%

• Potential to further expand capacity by

additional 1M tonnes by 2024

• Additional 1M tonnes expansion -

subject to feasibility study ICL UK

 Close to Teesside Port –

access to Northern Europe

 Increase annual polysulphate

production from 130,000 to 600,000 tonnes (capex: ₤38MM)

 Improve capacity utilization

while reducing costs per tonne Cost Potash volume

*Source: CRU Potash Cost Report 2013 Edition (December 2012), McKinsey & Company, ICL estimates

ICL DEAD SEA

• c. 2/3 of ICL’s effective

capacity

Potential to increase total capacity by at least 2 million tonnes in the next decade, while reducing costs

World’s Largest Elemental Bromine Producer

The Dead Sea integrated operations provide the highest concentration of Bromine which supports its world leading cost position

Access to Largest and Richest Known Source of Bromine

Grams/Liter

0.02 – 0.03 0.03 – 0.05 0.5 – 0.9 3.5 – 4.5 2.5 – 5.5 10.0 – 11.0 Underground Wells (China) Sea Water (China, Japan) Shallow Sea (Ukraine) Salt Lake (India) Underground Wells (U.S.) Dead Sea Operations (Israel, Jordan)

ICL’s leading market position

38% 29% 12% 13% 8% Other China Chemtura Albemarle ICL 2014 Estimated Production Capacity

 China’s reserves are depleting  ICL owns the largest fleet of isotanks

in the world 6

Source: ICL estimates, MarketsandMarkets

Phosphate used in phosphate fertilizers, compound and specialty fertilizers as well as food additives Potential Production Capacity - Israel (bulk products):

• Phosphate rock: ~4.5 million tonnes
• Phosphoric acid: ~600 thousand tonnes

Phosphate – Strengthening our Backward Integration and Geographical Footprint

7

Phosphate Volume

2 3 1

Phosphate Cost Curve (abstract model)*

*Source: CRU Phosphate Rock Cost Report, 2014 Edition (January 2014), ICL estimates

Important initiatives in our phosphate business are:

• Almost $30M annual savings due to Rotem production

records in 2H2014 and the early retirement plan

• Further gains due to operational excellence expected in

2015

• Efforts to obtain new franchise in Barir field

Strategic alliance with China’s Yunnan Yuntianhua to leverage ICL’s end-to-end phosphate business model Closing expected by Q1 2016

Resource expansion Existing operations

45.7% 39.3% 15.0% 50.0% 50.0% 100.0%

• World scale phosphate rock mine

with ~100mT reserves

• Rock capacity - 2.5mT p.a.
• Fertilizers – 850kT p.a.
• Phosphoric acid – 700kT p.a.
• Specialty fertilizers – 115kT p.a.
• Specialty phosphates – 65kT p.a.
• Purified phosphoric acid – 60kT p.a.

ICL

YTH Group Public Shareholders JV Yunnan Yuntianhua

• Deal value: $452M
• Sales increase: ~$550M to ~$700M
• EBITDA margins from low teens to

high teens within 5 years

• Estimates synergies: $30M p.a.
• Approx. 7.4x EV/EBITDA multiple

(year 2)

• Cash EPS accretive in year 2

Fulfilling Potash Demand Growth Potential

8 Promoting balanced fertilization to improve economic benefits  680 demonstration plots in 9 states and

• ver 40 districts

 15-35% average increase in yields; demonstrate benefit-to-cost ratios between 13:1 and 43:1

Incremental Demand Can Result in Material Growth for ICL

• Approx. 250,000 tons of incremental annual ICL

shipments required to grow at 5% p.a.

India

 600 demonstration plots in 2014  Several hundred additional plots in 2015  Soil fertility mapping

Specialty Fertilizer: Utilizing Growth Opportunities  $770 Million sales in 2014  Faster growing markets, relatively low capex  Strong sales network  Best-in-class R&D / technology Business Characteristics Markets Solutions  Water soluble fertilizers  Control released fertilizers  Liquid Fertilizers Horticulture Turf

Specialty Agriculture

 Investment in R&D and branding  Geographies and crops  Supply chain excellence

Ethiopia

Offered through value added nutrient mixtures & blends

Food: Leverage Leadership in Phosphate Food Additives for Texture and Stability

9

Bakery

Know how platform for texture and stability

Dairy Meat/Poultry/ Seafood Lower Fat & Sugar Lower Sodium Beverages

Phosphates Sourced ingredients Integrated formulation of solutions

Customers

Direct sale of ingredients Sale of solutions Dairy proteins

Bakery and Cereals

Transforming ICL Food Specialties into a global formulator of texture and stability solutions Key Milestone in ICL’s Food Strategy: Acquisition of Prolactal – A leading European Producer of Dairy Proteins

Generated ~$520M in Revenue in 2014

 2014 annual revenues of approx. €100 million, 200 employees  Market growth approx. 10%/annum  Cash EPS accretive from year one of consolidation with an EV/EBITDA ratio of 9x  Acquisition will contribute substantial sales and marketing synergies  Closing is expected by Q2 2015

Essential protein source in emerging markets and important ingredient to health, sports and infant food. Proteins are easy to digest and are better absorbed by the human body

Engineered Materials: Bromine, Phosphorous & Phosphates Based Products

10

Phosphorous & Phosphates – Leadership positions in key end markets Generated ~$860M in Revenue in 2014 Purified & specialty phosphoric acid Technical and specialty phosphates Wildfire Safety P2S5 for lubricants, motor

• ils and insecticides

Phosphorous flame retardants Phosphorous industrial solutions

* Source: ICL estimates

Faster than market growth driven by:

• Innovation
• Advocacy
• Substitutes

2014 Global Bromine Volume*

41% 21% 8% 18% 6% 6%

Other Clear brine fluids Water Treatment Flame Retardants Brominated Organic ‎ Intermediates Industrial

Areas of Growth

• Water Purification
• Oil and Gas Drilling
• Energy Storage
• Meat Disinfection
• Mercury Emission

Control

• Gold Extraction

R&D to drive future growth in the following areas:

Generated ~$730 MM in Revenue in 2014 Bromine - R&D and Market Trends to Support Demand

Strategy Implementation & Recent Developments

ICL’s Efficiency and Excellence Initiatives Contribution – 2014

12

Contribution by segment Contribution by project

 Total efficiency and excellence initiatives contribution in 2014 - $100M  Total annual contribution by 2016 Year End - $350M

Energy 9% Procurement 14%

Production, SG&A efficiencies 62%

Pricing 15%

ICL-PP 15% ICL-IP 14%

ICL-F 71%

1,196 960 301 35 100 Efficiency initiatives contribution to operating income

Implementing ICL’s Growth Strategy – Additional Milestones

13

• A producer of premium

solutions for the processed meat industry

Acquisition of HAGESÜD

• Latin America’s main

producer of purified phosphoric acid used in our three core markets: Agriculture, Engineered Materials and Food

Acquisition of Fosbrasil

• Cutting edge technologies in

firefighting foams and fire extinguisher additives

Acquisition of Auxquimia

• A manufacturing joint venture

for the production of a new polymeric flame retardant

JV with Albemarle

• A non binding MOU for a

Joint production and marketing of 1.5 million tonnes per year of high quality vacuum salt and 50,000 tonnes of white potash

JV with AkzoNobel

• A developer and manufacturer
• f specialty products providing

solutions for water conservation, water retention and enhanced growth

Acquisition of AmegA Divestitures on Track to Achieve Net Proceeds $300-500M

* Net proceeds: enterprise value net of taxes

• 2014 divestitures to generate more than $300M in net proceeds*:
• Total revenues of divested businesses in 2014 - about $350M with high single digit
• perating margin, lower than ICL’s average
• Additional divestiture opportunities: IDE, Clearon, ICL PP’s PCG business
• Proceeds to be used for growth opportunities in the Agriculture, Food and Engineered

Materials

4Q 2014 Financial Results

15

Highlights & Financial Results

• Q4 2014 adjusted operating income excludes a one-time write off in the AntiGerm business ($22M), in Clearon ($40M) and in Medentech ($9M), as well as one-time income as a result of the

Fosbrasil financial consolidation ($36M) and a one-time reimbursement from the Strike Fund ($9M).

• Q4 2014 adjusted net income exclude the above (net of tax effect) and a non-recurring tax expense related to investments made by a subsidiary in Europe in prior periods, at the amount of $11M.
• Net income in Q4 2014 impacted by higher financial expenses and effective tax rate due to exchange rate fluctuation (mainly dollar appreciation vs. the shekel)

$ millions Q4 14 Q4 13 % change FY2014 FY2013 % change Revenues 1,403 1,416 (0.9)% 6,111 6,272 (2.6)% Operating Income 174 123 41.5% 758 1,101 (31.2)% Adjusted Operating Income 200 218 (8.3)% 960 1,196 (19.7)% Adjusted Operating margin 14.3% 15.4% 15.7% 19.1% Net income 85 119 (28.6)% 464 819 (43.3)% Adjusted net income 108 195 (44.6)% 695 1,012 (31.3)%

Looking into 2015:

• Stable demand for flame retardants and bromine biocides will continue. Clear brine

fluids expected to be negatively impacted by lower oil prices as of 2H2015

• Margin expansion through implementation of cost reduction and selective price

increases expected to take effect in 2015

• Continued solid demand in phosphates and operational improvements can balance

short term potash and Specialty Fertilizers uncertainties

• Food Specialties: introduction of new multi ingredient solutions to continue
• Acquisitions of Fosbrasil and Prolactal will contribute to portfolio and geographic

expansions

Macro-Economic Developments Affecting ICL

16  Excess costs in shekel - $1B in USD terms  ILS/$ exchange rate today 10% lower than 2014 average  Negative ILS/$ exchange rate impact on net income in 2014 will turn positive in 2015  Excess revenues in Euro – $150M in USD terms  €/$ exchange rate today 16% lower than 2014 average  Oil prices plunged more than 50% LTM  Oil at $50/barrel to contribute $50-100M to ICL’s OP  Lower transportation costs in ICL Fertilizer more than

• ffset negative impact on ICL Industrial Products clear

brine fluids business  Ruble/$ exchange rate today 38% lower than 2014 average  Mainly impacting ICL Performance Products Food business in Russia.  Moderate impact on ICL Specialty Fertilizers  Significant cost advantage to Russian competitors in the potash and magnesium markets

ILS/$ WTI Crude €/$ Ruble/$

Financial Position to Support Dividend Yield and Growth Initiatives.

17 (US$Bn) 1.6 2.2 1.9 1.6 1.4 1.6 1.4 1.7 1.2 0.9 0.0 0.5 1.0 1.5 2.0 2.5 2010 2011 2012 2013 2014

Adjusted EBITDA and Operating Cash Flow

Adjusted EBITDA Operating Cash Flow

Committed to a Solid Dividend Policy

Average Cash Flow Conversion: 78%

(1) 1 Operating Cash Flow adjusted for one-time $108 million taxes paid due to Trapped Earnings Law 2 Average of 2010 – 2014 Operating Cash Flow divided by Adjusted EBITDA 3 Calculated according to market capitalization based on average share price adjusted for dividends. Dividends attributed to profits of that year 4 2014 LTM – dividend as per Q4’13-Q3’14

(2)

Dividend Yield (%) (3) 7.0 5.9 6.4 8.0 3.5 0.0 2.0 4.0 6.0 8.0 10.0 2010 2011 2012 2013 2014 LTM

(4)

2010 – 2014 Average: 6.2%

 Dividend policy: up to 70% of reported net income  Delivers significant income to shareholders, while maintaining capital allocation discipline  Flexibility to execute growth while maintaining payout ratio:

 Solid financial position: 2014

net debt/ EBITDA of 1.98

 Cost reductions and efficiency

improvements: run-rate $350M per year by 2016

 Divestiture: potential of $300-

500M in after tax proceeds 2014 LTM dividend was negatively impacted by

• ne-time items in the

amount of over $200M

Thank you Save the Date: ICL Investor Day New York, May 19, 2015

Appendices

ICL at a Glance

20  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  ~50% of production and ~95% of sales outside of Israel  LTM dividend yield: 8.25% (including special dividend) (2)(3) Company Snapshot Key Statistics (3) Our Business Segments US$Bn Market Capitalization 9.1 Net Debt 2.6 Enterprise Value 11.7 Main Shareholders Israel Corp 46.2% PCS 13.9% 2014A 2013A Revenue 6.1 6.3 EBITDA 1.3 1.6 % Margin 22% 25%  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

19% 18% 15% 48%

Our Business Mix and End Markets (1)

Potash Fertilizers & Phosphates Industrial Products Performance Products 52% 9% 8% 31% Processed Food Engineered Materials Agriculture (Bulk and Specialty Fertilizers) Fertilizers Segment

Business Mix (Based on 2014 EBITDA) End Markets (Based on 2014 Revenue)

Other 1 Excludes adjusted EBITDA attributable to Other and eliminations; may not sum to 100% due to rounding 2 Dividend yield calculated as total dividends paid over the last twelve months divided by current market capitalization 3 Market data as of March 30, 2015; Net debt calculated as total debt less cash, cash equivalents and short term investments

ICL Segments, Business Environment, Additional Strategic Milestones

22

Strong Global Presence

22

Europe 39% Asia 21% Israel 5% ROW 3% North America 23% South America 9%

Sales by Geography (2014)

Manufacturing plant Logistic center Sales offices Headquarter

Mexico

Leading Positions in Our Markets

23 Potash #2 in Western Europe; #3 in India; #4 in China and Brazil PK Fertilizers #1 in Western Europe Specialty Fertilizers #1 Worldwide in MAP / MKP Soluble Agriculture Fertilizers; #1 in the United States in Controlled-Release Fertilizers; #2 (tied) in Europe in Controlled-Release Fertilizers Specialty Phosphates Top 2 Worldwide Elemental Bromine #1 Worldwide Phosphorus-Based Flame Retardants #1 Worldwide Forest Fire Retardants #1 Worldwide Phosphate-Based Food Additives Top 3 Worldwide

End-Markets Product Rank

Agriculture Processed Food Engineered Materials

Source: ICL estimates, see “Presentation of Financial and Other Information” in the prospectus

24

ICL Fertilizers Segment Breakdown

* Based on 2014 external sales of ~$3.1 billion and operating profit of $670 million ICL Fertilizers sales* ICL Fertilizers operating profit* Fertilizers & Phosphates

20%

Potash 80%

Fertilizers & Phosphates 50%

Potash 50%

Growth Factors - Fertilizers and Food Products

25

Population Is Growing Arable Land Is Declining Yield Growth Required to Meet World’s Food Needs Meat Consumption and Fertilizer Use

Source: FAO

0.0 2.0 4.0 6.0 8.0 10.0 1970 1990 2010 2030F 2050F Pop (Bn) MM Tonnes of Meat and Nutrient Tonnes Arable Land per Capita (Hectares) Grain Production (Indexed to 100) 100 125 150 175 200 225 250 1980 1991 2002 2013 Meat Consumption Fertilizer Consumption 0.0 0.1 0.2 0.3 0.4 1970 1990 2010 2030F 2050F 100 200 100 200 300 World Crop Production in 2005 – 2007 Crop Rotation World Crop Production in 2050 Increase in Yields Expansion

• f Arable

Land +9% +14% +77%

Source: U.S. Census Bureau, United Nations Source: USDA, meat includes beef, veal, swine, broiler and turkey Source: FAO

Grains and Pulses: Barley, Corn, Millet, Mixed Grain, Oats, Rice, Rye, Sorghum, Wheat.

World Grains Production & Consumption

Link 16.72% 19.91% 21.14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 34% 36% 38% 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5

Billion Tonne Consumption Production Stock to Use

Sources: USDA, (Update February 2015)

World Grain Price Futures (CBOT)

$0 $5 $10 $15 $20 $25

CHICAGO BOARD OF TRADE (CBOT) CROP PRICES $/bushel

Corn Wheat Soybean Rice

Wheat Corn Soybean 10.10 3.90 5.38 Rice 10.86

Source: USDA, CBOT. All contracts for March 2015, prices as of Feb. 17, 2015

28

Potash Consumption Outlook in Selected Regions, 2008-2020

3 5 7 9 11 13 15 17 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Brazil China Europe India USA

Source: Fertecon Potash Outlook (December 2014) Region CAGR 2014-20 Brazil 5.3% China 4.1% Europe 2.2% India 14.4% USA 2.9%

Potash: Market Fundamentals

29

Source: Equity Research

56 51 53 59 - 61 66 - 67 45 50 55 60 65 70 2011A 2012A 2013A 2014E 2020E Long-term Growth Drivers

 Population growth  Increased standards of living and protein consumption  Declining arable land per capita

Former BPC 31% Canpotex 34%

ICL 8% RoW 27%

Mosaic Co Uralkali K+S

Source: Equity Research

Importance of “Grassroots” to ICL Potash Demand Growth Potential (Corn Example)

 Key ICL markets suffer from significant under-

fertilization and unbalanced application rates

 Farmer education will be an important growth

driver

 ICL believes it will be a primary beneficiary of such

initiatives given its strong position in these markets and the strategic location of its assets

2 4 6 8 10 12 50 100 150 200 250 300 USA China India Nutrient Usage, Kg per Ha Crop Yield Tonnes, per Ha

Nitrogen Phosphate Potash Yield (kg/ha) Source: USDA, IFA

Global Potash Capacity (MT) Global Potash Demand 2011 – 2020E

30

2014 – A Strong Fertilizer Year

Sources: China Fertilizer Weekly Market Report, Sindicaro Da Industria DE Adubose Corretivos Agricolas No Estado De Sao Paulo, GTIS, Fertilizer Week and Company estimates

2014 Imports to key markets - million tonnes

6.6 3.1 7.6 9.6 2.2 3.6 8.0 4.3 9.1 10.5 2.4 4.0

2013 2014

1 Full year phosphate fertilizers in P205 terms 2 Full year DAP imports

* Percentage may not match the numbers due to rounding

31

Fertilizer Prices

Potash Prices

FOB Vancouver standard KCl

US$/t spot US$/t spot

Average DAP fob Tampa Average GTSP, fob North Africa

Phosphate Prices

* Source: Fertilizer Week, prices as of February 170, 2015

FOB NOLA granular KCl

100 200 300 400 500 600 700

200 250 300 350 400 450 500 550 600 650

32

1 3 4 5 2

ICL Dead Sea – Raw Material Extraction Pumping and evaporation process 1 2 3 4 5

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

Advantageous Potash Assets Locations

33

ICL Has Shorter and Lower Cost Shipping Routes to Emerging Markets

Destination (Days) Destination ($/tonne) Country of Departure Mine-to-Port (km) (1) China India Brazil China India Brazil Israel ~200 23 11 22 21 15 17 UK ~30 34 22 20 32 27 17 Spain ~85 27 15 17 34 26 17 Germany ~350 34 23 20 30 26 16 Russia / Belarus ~600 39 27 25 24 26 18 Canada West Coast ~1,700 35 47 43 15 26 29

Clear Service Advantage to Developed and Emerging Markets

 Low plant gate-to-port costs and ocean freight costs with faster time to markets

Europe China Brazil India US Israel

Source: ICL estimates, Netpas

Strategic Alliance with Yunnan Yuntianhua

34

Financial Highlights Strategic Rationale  Revenues: JV sales to increase from ~$550M to ~$700M  Commodity / Specialty sales volumes ratio to develop from 90%/10% to 50%/50%  Margin expansion: expand EBITDA margins from low teens to high teens within 5 years  JV valuation reflects approximately 7.4x EV/EBITDA multiple (year 2 estimates)  Cash EPS accretive from the first full year of operations  Synergies: at least $30M per year, achieved within 5 years, with a potential to double this amount  Investment in the JV and the listed company: $452 million  CAPEX: ~$350M spread over 5 years starting from the closing

35

Maximizing Efficiency & Growth in ICL Iberia

• Establish a long term capacity increase while significantly reducing the cost per tonne to a near

Dead Sea level, with marginal cost per tonne similar to the Dead Sea level

• Significantly reduce environmental foot print
• Approx. $435M investment to consist of:

 Step-by-step increase capacity to 1.4M tonnes  Plant output to be almost 100% granular  Double vacuum salt capacity to 1.5M tonnes  Maximize ramp capacity, site & port logistics and infrastructure to support expansions of up to 2.3M tonnes  Perform feasibility study of new brownfield project, aimed to expand production by an additional 1 Mt KCl annually

2012 2015 2020 2025

KCl Production

36

Strengthening and Expanding ICL’s Specialty Fertilizers’ Innovative Technologies

• Based in the UK, established in 1984
• Developer and manufacturer of specialty products for

the specialty agriculture, horticulture and turf & amenity markets

• Products providing solutions for water conservation,

water retention and enhanced growth

• Acquisition will strengthen ICL Specialty Fertilizers’

position in specialty agriculture markets, enhancing its supply chain and scaling its operations

Acquisition of AmegA Sciences:

Targeting Growth Opportunities in Specialty Fertilizers

A non binding MOU with AkzoNobel, a major producer of specialty chemicals and a leading global paints and coatings company

Joint production and marketing of 1.5 million tons per year of high quality vacuum salt and 50,000 tons of white potash.

• High value added product with broad applications.
• Strong synergies
• A viable solution to the salt by-products of potash.

37

ICL Iberia Signed Memorandum of Understanding With AkzoNobel

Opportunities The Deal

38

ICL Industrial and Performance Products Segments serve the Engineered Materials and Processed Food Markets

Flame retardants 35%

Magnesia 8% Dead Sea Salts 9% Microbial Solutions 9%

Industrial Solutions 34%

Food Specialties 34% Phosphate Salts 13% Other Products 29% Other Phosphate Based Products 20%

Phosphoric acid 10% * Based on 2014 external sales of ~$1.5 billion and $1.3 billion in Performance Products and Industrial Products, respectively. Industrial Products* Performance Products* Specialty Minerals

39

Engineered Materials: Drive Bromine Market Growth A

Opportunities The Deal

Agreement Between ICL & Albemarle:

Establishment of a manufacturing joint venture for the production of polymeric flame retardant

• The JV will operate an existing 2,400 MT per year plant in the Netherlands and a 10,000 MT per year plant in

Israel, which is now starting up

• The transaction, subject to certain closing conditions, including regulatory approvals, is expected to close in

2015

• ICL’s FR-122P to replace the HBCD flame retardant which is being phased out in different countries
• Offering environmentally-friendly, fire safety products based on exclusive license from Dow Chemicals
• Additional capacity to meet the market growth needs
• Lower risk as well as lower costs due to economies of scale. The JV will create the largest producer of the

companies’ polymeric FR

40

Expand Footprint in Brazil: Completion of 100% Acquisition Of Fosbrasil for ~$65M

• Latin America’s main producer of purified phosphoric acid
• More than $100M in sales, 90 employees
• Benefits:

 Almost 50% increase of ICL’s purified phosphoric acid volumes  ICL to become South America’s market leader in specialty products for Food, Engineered Materials and Specialty Fertilizers  Synergies utilization and improved competitiveness

• Based in Germany
• Producer of premium spice blends and food

ingredients for meat processing

• Processed meat formulation & specialty

distribution channel

• Acquisition expands ICL’s portfolio of tailored,

functional solutions Premium Solutions for the processed meat industry

Expand Food Value Chain into Specialty Processed Meat Market

41

Acquisition of HAGESÜD GROUP: Next step in executing food growth strategy

Latest Financial Results: 4Q 2014

43

Q4 2014 Results

$ millions Q4 14 Q4 13 % change FY2014 FY2013 % change Revenues 1,403 1,416 (0.9)% 6,111 6,272 (2.6)% Operating Income 174 123 41.5% 758 1,101 (31.2)% Adjusted Operating Income 200 218 (8.3)% 960 1,196 (19.7)% Adjusted Operating margin 14.3% 15.4% 15.7% 19.1% Financial Expenses, net 66 6 156 27 Net income 85 119 (28.6)% 464 819 (43.3)% Adjusted net income 108 195 (44.6)% 695 1,012 (31.3)%

174 200 108 71 36 9 43 23 38 12

• Adj. Net Income

Bridge Analysis

44

Potash Bridge Analysis

Sales ($M) Operating Profit ($M)

465 431 12 35 11

Numbers may not add due to rounding

140 128 12 2 4 24 6

45

Phosphates and Fertilizers

Sales ($M) Operating Profit ($M)*

356 385 7 30 8

* Q4 2013 operating income was impacted by a provision for early retirement in Rotem, in the amount of about $60M, while Q4 2014 operating income is excluding a one-time

reimbursement of $8M from an insurance award in connection with the strike in Rotem.

9 37 9 7 5 15 8

Numbers may not add due to rounding

46

Industrial Products

Sales ($M) Operating Profit ($M)

305 313 17 8 1 25 30 14 1 4 3 2

Numbers may not add due to rounding

47

Performance Products

Sales ($M) Operating Profit ($M)

Numbers may not add due to rounding

376 363 23 4 23 17 35 26 5 13

48

Lower, Yet Strong Returns

10.9% 8.1% 10.4%10.5% 22.4% 31.2% 23.2% 31.4% 94.5% 29.5% 38.0% 53.1% 40.4% 28.8% 21.0% 5.5% 4.2% 5.5% 5.3% 9.6% 14.4%12.9%19.1% 52.0% 19.4%21.4% 33.5% 25.8% 18.2% 13.6% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 2014 ROIC ROE

ROE (Return on equity) = net income / shareholders' equity, average ROIC (Return on invested capital ) = (operating income ×(1-0.20)) / ((trade receivables + inventory – trade payables) + PP&E, net), average * Operating income is after elimination of non-recurring effects: provision for early retirement at Rotem, provision for removing waste at Bromine and impairment of assets at ICL-IP. Net income is after elimination of non recurring tax effects (mainly, tax in respect of release of trapped earnings in 2013 annual results, provision for early retirement it Rotem, provision for removing waste at Bromine and impairment of assets at ICL-IP in Q4 ‘13) 2000-2006 figures are based on Israeli GAAP, 2007-2014 are based on IFRS Data for 2012-2013 reflect the application of 2 new IFRS accounting standards Data is based on adjusted operating and net income

49

Operating Cash Flow

$ millions 2006 2007 2008 2009 2010 2011 2012 2013 2014 75 91 206 239 220 142 321 192 167 91 177 461 400 521 284 376 425 119 119 147 717 242 370 499 716 394 295 75 150 475 319 427 344 314 116 313

Q4 Q3 Q2 Q1

* 2006 figures are based on Israeli GAAP, 2007-2014 are based on IFRS

360 565 1,200 1,727 1,127 1,269 1,538 1,859 895

 Net debt to EBITDA (as of end-2014): 1.98X

1 ROIC : after-tax operating income (assuming effective tax rate) divided by invested capital (net debt plus shareholder equity plus minority interest). K+s and Uralkali– based on last reporting period 2 Market data as of Feb, 2015; Represents dividends divided by current share price. 3 Includes $500MM special dividend 4 Calculated using 5 year average EBITDA (2010 – 2014). Uralkali and K+S - 2010-2013.

Leading Cash Returns

50

(%)

8.3 3.8 3.4 1.9 0.9 2.0 0.0 2.0 4.0 6.0 8.0 10.0 Average: 2.4%

Current Dividend Yield LTM (2)

(3)

Source: Company filings, filings of competitors

22 18 18 15 15 17 10 15 20 25 30 Average: 17%

2010 – 2014 Average (%)

Return on Invested Capital (1)

1.8x 2.8x 1.8x 1.2x 1.4x 0.0 1.0 2.0 3.0 4.0 Average: 1.8x

Total Debt / EBITDA – ICL vs. Peers (4)

(3)

Baa1 / BBB A3 / A- Baa3 / BBB- BBB Ba1 / BBB Shareholder Return – Sheshinky to Feb 17 2015 (1) (6.6%) 5.3% 6.2% January 2005 to Sheshinski (May 1 2014) 417% 341% 228% Cumulative Capex on Capacity Expansions ($Bn) (2) 1.05 8.5 3.5 Expansion Capex / Market Capitalization 12% 28% 18% % Increase in Potash Production 2007 - 2014 2% (5%) (11%) Free Cash Flow Conversion (3) 31% 37% 18%

Key Financial Highlights

1 USD share price plus dividends 2 Expansion and growth capex from 2008 – 2014 (source: company reports, ICL estimates) 3 2010 to 2014 performance; Free cash flow conversion calculated as free cash flow divided by EBITDA; Free cash flow calculated as cash flow from operations less capex and cash acquisitions

Additional Key Topics

Our Future Priorities

52 “One ICL”

• Harmonize IT systems and management processes, share best practices
• Identify and reward top performing employees

Grow Our Core Businesses

• Seek and evaluate opportunities with a potential to double our phosphate scale
• Expand our potash minerals assets and outperform potash market growth by educating emerging

market farmers on the benefits of potash

• Continue to pursue high-return “bolt-on” M&A opportunities in phosphates, food additives and

specialty fertilizers

• Drive demand growth through innovation in downstream bromine and phosphate-based products
• Expected to increase R&D by 30% by 2019

Improve Our Cost Position by $350MM by 2016 (1)

• Streamline potash and phosphate operations to reduce cost per tonne
• Implement efficiency improvements across our global processes

Grow Shareholder Returns

• Committed to a dividend pay-out ratio of up to 70%
• Maintain commitment to return of capital to shareholders
• Optimize best-in-class ROIC and free cash flow generation

Maintain Strong Flexible Balance Sheet

• Maintain investment grade credit metrics
• Maintain current level of capex while substituting maintenance capex with growth capex
• Divestitures of non-core assets should contribute $300-500 million

1 Run-rate reduction based on 2013

Implications of the Natural Resources Committee

53 Legal Actions Operational Business Measures: Cost Cutting Acceleration in Bromine Compounds and ICL Dead Sea, Revaluating the Magnesium Plant Closure

Looking Forward

Advocacy: Challenge Recommendations within Policy Makers Strategic Business Measures: Cancellation of $0.75Bn and Review of $1.00Bn of Capital Expenditures, Shifting Investments Outside

• f Israel

ICL is taking significant mitigation measures:

• Final recommendations were approved by the government. 2015 elections delays the process.
• Changes to the potash tax system will not come into effect prior to January 2017

Natural Resources Committee Final Recommendations Key Points

 25% tax when RODA* is between 14-20%, 42% tax when return is 20% or above  Fixed 5% royalty pay-off for all natural resources  Phosphate royalties will be paid based on ex-mine value  5% of working capital to be deducted from the financial statements operating profit  Determine a unique mechanism for bromine regarding the transfer price  The benefit of the Sylvinite production in the magnesium plant will be recognized as an expense for the potash

• plant. Uncertainty regarding the contribution for the bromine production

* Return on depreciated assets

Global Leader in Climate Change Mitigation

54

High Scores by the Carbon Disclosure Project (CDP) Outscoring Peers*

Organization Disclosure Score Performance Score

Mosaic 99 A

ICL 98 A

Syngenta 97 A K + S 93 C Agrium 81 C PotashCorp 80 C Monsanto 76 D BAGFAS 44 Not received (disclosure score too low) Uralkali 40 Not received (disclosure score too low)

 For the second year in a row, ICL has maintained its high score of 98/100 in the Disclosure Score and in 2014 achieved the top “A” performance score, acknowledging ICL’s major efforts to both manage and reduce it’s GHG emissions  Both scores are among the top 10% of scores of all global companies in 2014, and place ICL in the CPLI, an exclusive index of companies that are excelling in climate change mitigation  The combined scores are the second best score among global fertilizer-producing companies

ICL has been recognized as a World Leader in managing and reducing Greenhouse Gas Emissions and mitigating Climate Change

* Source: CDP Database, October 2014

55

ICL Branding Website

Launched globally on Jan 27 Available in 7 languages! Demonstrates our vision and strategy

The thinking behind the brand story The brand’s graphic and textual language ICL new site names search engine

The website offers:

Branding examples & ICL brand book

ICL “Minute to 8” video clips

And more!

Visit the website: www.iclbranding.com