Investor Presentation

June 2016

Safe Harbor

2

This Presentation (references to which and to any information contained herein shall be deemed to include information which has been or may be supplied in writing or orally in connection herewith or in connection with any further enquiries) is provided for the sole purpose of providing general information to assist the recipient in deciding whether it wishes to proceed with a further investigation for investing in Israel Chemicals Ltd. and/or its affiliates (hereinafter jointly referred to as the “Company” or “ICL”). This Presentation shall not form the basis of, or be relied upon in connection with, any contract or commitment whatsoever, and it does not purport to be comprehensive or to contain all the information that the recipient may need in order to evaluate the Company and/or its assets.

No representation, warranty or undertaking, express or implied, is given by ICL and/or any member of the ICL Group or their respective directors, officers, employees, agents, representatives and/or advisers as to or in relation to the accuracy, completeness or sufficiency of the information contained in this Presentation or as to the reasonableness of any assumption contained therein. To the maximum extent permitted by law the Company and its respective directors, officers, employees, agents, representatives and/or advisers expressly disclaim any and all liability which may arise from this Presentation and any errors contained therein and/or omissions therefrom or from any use of this Presentation or its contents or otherwise in connection therewith.

No representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any valuations, forecasts, estimates, opinions and projections contained in this Presentation. In all cases, recipients should conduct their own investigation on any analysis of the Company and/or its assets and the information contained in this Presentation. Nothing in this Presentation constitutes an investment advice and any opinions or recommendations that may be contained herein have not been based upon a consideration of financial situation or particular needs of any specific recipient. Any prospective investor interested in buying Company’s securities or evaluating the Company and/or its assets is recommended to seek its own financial and other professional advice.

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.

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 the Company’s control, which could cause actual results, performance or achievements to differ materially from those described in or implied by such statements or projections. 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). 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.

Our Vision: Fulfilling Humanity’s Essential Needs

3

Rise of the middle class and standard of living across the globe

Increased demand for and use of natural resources

Environmental stewardship and sustainability

We fulfill essential needs in 3 core end markets – Agriculture, Food and

Engineered Materials by utilizing an integrated value chain based on

specialty minerals

Integrated Value Chains Provide Significant Synergies

4 4

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

Bromine Compounds

Magnesium

Chloride

Solution

Magnesium

Chloride

Raw Materials

Potash

Sylvanite

Crude

Magnesium

Essential Minerals, Specialty Fertilizers Industrial Products Advanced Additives Food Specialties Product Sold

End Brine

Elemental

Bromine

Phosphate

Rock

Chlorine

Elemental

Phosphorus

Special

Grade Acid

PFRs & Others

Magnesia

Products (MgO)

Source Major Intermediate & Finished Products

Wildfire

& Class B Extinguishers

Food Additives

P2S5

PolysulphateTM

Carnallite

PCL3 POCL3

CEO

Stefan Borgas

Essential Minerals Division

Nissim Adar

Specialty Solutions Division

Mark Volmer

5

ICL’s Adapted Organization Structure: Enabling Strategic Growth

Potash & Magnesium BU

Advanced Additives BU

Phosphates BU

Industrial Products BU

Food Specialties BU

Specialty Fertilizers BU

~1,500 ~1,100 ~950 ~870 ~600 ~700 FY 2015

Previously

*Before elimination of inter-business units sales

CFO

Kobi Altman

COO

Charlie Weidhas

Sales* ($ Million)

Q1 2016 ~210 ~230 ~160 ~190 ~270 ~300

2015 sales: ~$2.6B

2015 sales: ~$3.1B

66% 34% 53% 47%

39% 61%

46% 54%

6

Improving Our Commodity-Specialty Balance

Sales

Adjusted Targeted Operating Income

2015

2015

2020

2020

Specialty Solutions

Essential Minerals

7

Essential Minerals Business Units’ Targeted Top and Bottom Line Growth Driven by Operational Excellence

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

Adjusted Operating Income ($M)

Potash 2-3% ~0%

Phosphates 1-2% 0-1%

CAGR 2015-2020 Sales Adj. O/I

* Assuming flat potash and phosphate prices vs. Q4 2015

1,964 1,579

979

1,079

Potash & Magnesium Phosphates

530 561

77 132

Potash & Magnesium Phosphates

Our Mineral Asset base - Value Creation Through Continuous Improvements

8

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

Integrated value chain highly biased towards value added specialties

Successful efficiency and operational excellence plan executed at Rotem

ICL Rotem ICL Iberia, ICL UK ICL Dead Sea

Potash, Bromine, Magnesium

Potash PolysulphateTM

Phosphate

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

YPH JV secures long-term reserves, expand business model into Asia and improves costs through synergies

Transition to specialties to improve revenue and margins

Build new Specialty Fertilizers plants and new multi-ingredient blending plant and lab for Food Specialties

YPH JV

Phosphate

55 33

154 121

138 160

49 44

Specialty Solutions Business Units’ Targeted Top and Bottom Line Growth

9

Sales ($M)

Food specialties 7-9% 12-15%

Advanced additives 3-5% 5-7%

Industrial Products 4-7% 7-9%

Specialty Fertilizers (Incl. NOP)

10-15% 15-20%

CAGR 2015-2020 Sales Adj. O/I

Adjusted Operating Income ($M)

-120

-70

-20

30

80

2013 2014 2015 2016 2017 2018 2019 2020

Approx. cash flow

Specialty Solutions M&A payback track record US$M

Amega Prolactal

Hagesüd

Fosbrasil Auxquimia

Knapsack Payback within 5 years 770 693

1,111 873

879 944

525 614

Food specialties

Advanced Additives

Industrial Products

Specialty Fertilizers

10

ICL Specialty Fertilizers: The Path for Faster than the Market Growth

~700

Solubles /Fertigation

Foliar

Controlled Release Fertilizers

5%

9%

9%

R&D supported growth

Geographic expansion

Cost Position in MAP/MKP

NOP Plant

Water Soluble NPKs in China

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

Specialty Agriculture 5-6%

Ornamental Horticulture

1-2%

Professional Turf 0%

Market growth (CAGR) Product line Strategic initiatives

Q1 2015 Q1 2016

11

Industrial Products: Successful Strategy Implementation

Chinese bromine prices continue their upward trend

2000

2400

2800

3200

3600

New products sales drive sharp increase in operating income

US$

Budget Q1 2016

HR Procurement Production

Efficiency improvements surpasses expectations

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

7%

9%

11%

13%

15%

17%

19%Operating income margins

Despite weakness in the Clear Brine Fluids and Specialty Minerals businesses

12

ICL Food Specialties: New Blended Solutions Driving Growth

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

ROVITARIS™ protein system providing an appetizing, healthy meat-free option

BEKAPLUS® BP 900 for clear protein solution

New product technology: clear, low-

pH whey protein beverage, meatless

hot dogs

Rising interest: over 400 samples

served in 4.5 hours

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

R&D facilities

Research Chefs Association Conference

New products sales continuous increase

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

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

Q1 FY

2015 2016

95% Increase

130% Increase

Grow revenues and operating margin by about 30% in 2020 vs. 2014

13

Advanced Additives’ Growth Mainly Driven by M&A and R&D

Organic growth in paints and coatings for the metal, wood and concrete markets, with expected growth of 10‐15% p.a.

Fire Safety growth principally from class B foam in N. America

Development of new products

YPH JV - expansion into the SE Asian markets

Fosbrasil – expansion into Latin America

Profitability

Paints & Coatings

Fire Safety

Geography

Specialty Acids

~700

2014A 2015A 2016E 2018E

Efficiency Initiatives and Cash Flow Optimization

14

USD millions

2016E efficiency gains contribution breakdown*

Efficiency gains contribution*

275

100

~400

Improving working capital to generate additional $50M in cash flow. CapEx not to exceed $650M in 2016-2017

Operational Excellence

Procurement HR

475-500

* Compared to 2013

Reduced Average Cost Per Tonne – Essential Minerals

15

Cost per tonne decrease - mainly a result of company efforts

Green phosphoric Acid Cost $/tonne FOB

60% 40%

External factors ICL initiatives

2015 vs. 2014 cost/tonne reduction breakdown

Increased production

Labor cost reduction and increased operating efficiency

Depreciation of euro, shekel and pound vs. USD

Reduced shipping costs

Reduced energy costs

Main factors contributing to lower costs

* Calculation based on adjusted full costs, including COGS, royalties, depreciation, freight and transportation, G&A, S&M.

Potash – average realized full cost per tonne sold*

100% 98% 92%

77%

76.3% 85.2%

95.8%

100%

16

Capital Allocation Approach

Long-term value creation

Manage debt level

Shareholder’s return

FINANCIAL STABILITY

Dividend policy adapted to current market environment: payout ratio up to 50% of adjusted annual net income

New dividend policy to provide certainty to shareholders while keeping ICL’s financial strength intact

Policy will reviewed once market conditions stabilize

ICL Attractive Investment Case

17

Solid commodity base and growing specialty business to provide ROIC of about 15%

Efficiency improvement to deliver ~$400M contribution by 2016. Cash flow optimization measures (CapEx and working capital reduction) to contribute additional $100-150M

Going global: improved resource balance, grow specialties in emerging markets

Mineral assets growth, controlled capex and significant cost reduction = grow and defend profitability

Adjusted Targeted Operating Income

66% 34% 53% 47%

2015 2020 Specialty Solutions

Essential Minerals

Committed to Responsible Value Creation

Thank you

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

~55% of production and more than 95% of sales outside of Israel

FY2015 dividend yield: 4.3% (2)(3)

Company Snapshot

Key Statistics (3) Our Business Segments

US$Bn

Market Capitalization 5.4

Net Debt 3.4

Enterprise Value 8.8

Main Shareholders Israel Corp 46.0%

PCS 13.9%

1Q2016 1Q2015

Revenue 1.3 1.4

Adj. EBITDA 0.2 0.4

% Margin 18% 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

16%

14%

14%

56%

Our Business Mix and End Markets (1)

Potash

Fertilizers & Phosphates

Industrial Products

Performance Products

56%

2%

11%

31%

Food

Engineered Materials

Agriculture (Bulk and Specialty Fertilizers)

Fertilizers Segment

Business Mix (Based on FY2015 Adj. EBIT)

End Markets (4)

(Based on FY2015 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 in 2015 divided by current market capitalization (December 31st, 2015) 3 Market data as of June 2, 2016; Net debt calculated as total debt less cash, cash equivalents and short term investments 4 Including inter-company sales

Strategy Highlights – Build Integrated Company Focused On Specialty End Markets

21

Unique business model Global integrated value chain into specialty markets

Grow core business Grow Specialty - R&D, Organic

growth, bolt-on M&A Maintain cost leadership

through raw material backward integration

Operational excellence Execute on $400M efficiency improvements

Balanced capital allocation and strong dividend yield

21

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

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 ICL Dead Sea higher potash production

Double PolysulphateTM business

Grow ICL Industrial Products margins

Focus on Food Specialties and Bromine value chain R&D

Moving forward with feasibility studies for growth projects in Africa

Continue cost reduction including labor

Continue procurement savings trajectory

Deliver the 2016 savings target of ~$400 million per year vs. 2013

YPH JV - execute integration plan

Additional cash flow optimization measures

22

Strategy Implementation

2015 Achievements Plans for 2016

Financials

1,403 1,265

164 70 19 49 77

227

Q1 2016 Results

Q1 2016 Sales Q1 2016 Adjusted operating income

Numbers may not add up due to rounding

Significant market uncertainty weighed on Essential Minerals businesses

Downstream specialty businesses demonstrated stronger resilience

Disciplined capital allocations supports short-term free cash flow and remains on high priority

Q1 2016 Highlights Q1 2016 Financials

24

$ 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%

Free cash flow 38 (72) (92)

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)%

176 115

99* 28 11 4

81

114

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

498

14 14

238

25

1,145

18 19

1,010

0 46

103

103 103

103

Loans New Debentures

25

Refinancing Short-term Credit Lines Through A Successful Bond Issuance

Successful placement of debentures of NIS ~1.57 billion

(~$413 million), 2.45% interest rate

Proceeds used to free-up credit lines

Strengthening our financial position

Extending the average term of maturity of our

outstanding debt

Net debt* ~$3.5B

Available credit lines ~$1.0B

* Including approx. $300 million securitizations

ICL Maturities 30/04/2016 (US$ millions)

Essential Minerals Division

27

Agriculture

ICL Dead Sea

ICL Rotem

ICL Turkey

~7,000 Employees Worldwide

ICL UK

ICL Iberia

ICL Germany

ICL The Netherlands

Essential Minerals: Fulfilling Essential Needs in the Global Agriculture Market

Potash Fertilizers

Phosphate Fertilizers 44% 53%

Essential Minerals’ 2015 Sales by business unit**

Of ICL’s 2015 sales **

54%

Americas* - ~20%

Asia* - ~30%

EMEA* - ~50%

*Of 2015 sales **Not including inter-segment sales

YPH JV

Magnesium

3%

Magnesium

Growth Factors - Fertilizers and Food Products

28

Meat Consumption

Population

Fertilizer consumption

1.0

2.0

3.0

4.0

5.0

6.0 Index, relative to 1962

Yield Growth Required to Meet World’s Food Needs Population, Meat and Fertilizers [Base 1962]

Source: IFA, USDA, USA Census

Diminishing arable land per capita

World Grains Production & Consumption

29

16.72%

19.80%

24.25%

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

2.6

Bill

ion

To

nn

e

Consumption Production Stock to Use

Sources: USDA, (Update May 2016)

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

$3

$5

$7

$9

$11

$13

$15

$17

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

Corn

Rice

Soybean

Wheat

World Grain Price Futures (CBOT)

30 Source: USDA, CBOT. Prices as of May 16th 2016

11.49

10.78

4.42

3.74

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 May 12, 2016

FOB NOLA granular KCl

200

250

300

350

400

450

500

550

600

650

0

100

200

300

400

500

600

700

Potash & Magnesium

33

ICL Dead Sea

~3,500 Employees Worldwide

ICL UK ICL Iberia

Potash Business Unit

~70%

Potash & Magnesium 2015 Sales of total ICL sales*

* Not including inter-segment sales

~30%

ICL Magnesium

ICL Ethiopia**

** Project under evaluation

Cereals 37%

Oilseeds 20%

Tot. Other43%

Wheat

6.2%

Rice

12.6%

Maize

14.9%

Other Cereals

3.7%Soybean

9.0%Oil Palm

7.2%

Other Oilseeds

3.5%

Fibre Crops

2.8%

Sugar Crops

7.7%

Roots/Tubers

3.8%

Fruits

6.6%

Vegetables

10.0%

Oth Crops

11.8%

Source: IFA – Assessment of Fertilizer Use by Crop at the Global Level 2010 (Aug 2013)

Potassium Fertilizer Global Use by Crop

34

Strategic Geographic Advantage Clear Service Advantage to Developed and 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

China

India

IL

Europe

Brazil

US

Short mine-to-port distances and proximity to emerging 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

2 Source: ICL estimates, Netpas

• 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

35

China China

China China China India

India

India India

India

Brazil

Brazil

Brazil Brazil

Brazil

USA

USA

USA USA

USA

SE Asia

SE Asia

SE Asia SE Asia

SE Asia

RoW

RoW

RoW RoW

RoW

China India

Brazil

RoW

70

60 62

Potash Consumption Growth Forecast

Data: CRU Potash Outlook March 2016

Million tonnes KCl

36

1999-2015 CAGR

2015-2020 Growth

2015-2020 CAGR

1.7% 10 Mt 3.0%

After 2020, annual growth rate returns to about 2%

37

1

3

4

5

2

ICL Dead Sea – Raw Material Extraction

Pumping and

evaporation process

1

2

3

4

5

38

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

ICL's Long Term Commitment to Catalonia

39

Master Plan signed between the Government of Catalonia and ICL defines the development for the next decades

Development of mining and operations

Adaptation of logistics via rail and port and roads

Commitment to the environment: restauration and waste management

Basis for steady growth which will develop ICL's potash and salt activities for the benefit of European and global agriculture

Stable return on investments of several hundreds of mio USD

Long term planning framework for the region and for ICL

Government of Catalonia considers ICL’s Phoenix Project strategic for the country

Fulfilling Potash Demand Growth Potential in India

40

An ICL & IPL JV, Bringing India to the state of the art potash fertilization

- K +K

The program enters its 3rd year, covers 52 districts in 9 states around India

21 experienced agronomists help providing evidence of the profitable use of potash

~400 farmer activities (Oct ’13 – Apr ’15) including field days, jeep campaigns, crop seminars and farmers meetings.

~2,000 Demonstration plots (Oct ’13 – Apr ’15) with more than 20 crops

Results: 15-35% average increase in yields;

Success stories demonstrate benefit-to-cost ratios between 13:1 and 43:1

Africa – Driving Demand in an Unexploited Potash Market

41

Potential potash consumption of more than 400k tonnes between Ethiopia, Tanzania & Kenya. Current consumption – 40-50k tonnes

Africa has 12% of the world’s arable land but only 20% is cultivated

Only 7% is irrigated (40% in Asia)

Share in global population to grow from 15% in 2010 to 23% in 2050

Only 1.7% of global potash consumption

Program led by ICL in collaboration with

Ethiopian partners

Range of activities to increase awareness among farmers of the benefits of potash:

950 Demonstration plots, outreach to farmers

Soil fertility mapping

Research and validation

Expansion into Tanzania

42

Polysulphate™: A New Bulk Specialty Multi Ingredient Fertilizer Targeting 1 Million Tonnes By 2020

Readily available new natural fertilizer containing four nutrients

~50%

~14% K

S

~36% Mg+Ca

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

2014 2020

PolysulphateTM production plan K Tonnes

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

Transition to PolysulphateTM - Improving cash contribution

Phosphates

44

ICL Rotem

ICL Turkey

~3,500 Employees Worldwide

ICL Germany

ICL The Netherlands

Phosphates Business Unit – the Source of Our Integrated Value Chain

85%

Phosphates 2015 Sales of total ICL sales*

*Not including inter-segment sales

YPH JV

15%

Cajati Brazil

The Phosphate Market and ICL’s Position

45

43.7

47.5 - 0.7 0.1 0.8

1.3

2.2

2015consumption

China US Brazil India RoW 2020consumption

Source: CRU

We are active in the TSP, SSP and Phosphoric Acid

• TSP marketing focuses on Brazil, USA and Europe

SSP marketing focuses mainly on Brazil

• We are the largest supplier of PK fertilizers in Europe

• We plan to become a supplier of DAP through our YPH JV in China

CAGR 2014-2019: 1.6%

70% Utilization

rate

67% Utilization

rate Million tonnes P2O5

46

Consumption is dominated by 4 countries

USA

Brazil

India

11%

11% 12%

30%

Phosphate Fertilizer Global Consumption

China

Fertilizer P2O5 Demand Growth Index

47

5.0

7.7

4.0

12.1

18.3

50

100

150

200

250

300

350

400

450

Ind

ex –

19

90

= 1

00

Brazil India USA China RoW

Million Tonnes P2O5

Phosphate Rock Global Market leaders

SOURCE: McKinsey; team analysis

5

4

3

3

4

5

6

7

9

9

9

10

13

16

30

Total

Mosaic

YTH

Gecopham

Ma’aden

CF Industries

Other companies

Agrium

ICL

216

Simplot

JPMC (Jordan)

Wengfu

CPG (Tunisia)

PhosAgro Apatit

Vale

PotashCorp

85

OCP 1

2

3

4

5

6

7

8

9

10

11

12

13

15

14

Phosphate rock capacity 2011

MT rock annual capacity Ranking

Capacity share

% Company

Players with

significant

rock export

14

7

6

5

4

4

4

3

3

2

2

2

2

2

1

39

*

* Without YPH rock capacity 48

+15%* +58%* +117%* +45%* +63*

780 256 600

1,900

4,000

115

60

700

850

2,500

120

Transforming Into The World’s Leading Specialty Phosphate Player

49

ICL** YPH JV

Thousand tonnes

899 436

1,300

2,750

6,500

Expansions

Phosphate Fertilizers Food Specialties Advanced Additives Specialty Fertilizers

Specialty Commodity

New market supported by Chinese government policy

Grow sales in soluble MAP, MKP and Light Specialties

Build new CRF and WSNPK plants in China

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)

* Increase in capacity compared to 2015

Kunming

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

** Includes N. America and Brazil

Purified Phosphoric Acid

Phosphoric Acid

Commodity Fertilizers

Phosphate Rock

Specialty Fertilizers

Transforming Into The World’s Leading Specialty Phosphate Player

50

~$180M in the JV Investment

~RMB2,700 (~$400M) in year 1 to ~RMB3,700 (~$550M) in year 5

Revenues

Break even run rate in year 1 to high single digit in year 5

Operating Income Margins

About $340 million spread over 5 year (ICL’s share – 50%)

Additional CAPEX

YPH JV to strengthen our specialty platform R&D platform supporting transition to specialties:

11+ projects in Food, Engineered Materials, Agro (Incl. Polysulphate) and process improvement.

Intensively building the Specialty Marketing Platform

A key milestone in our strategy:

Securing long-term reserves

Expanding phosphate business model with a focus on Asia

Improving our phosphate network’s cost competitiveness through synergies

Specialty Solutions Division

Specialty Fertilizers

Specialties

Light

Specialties

Commodities

• Added value

• Higher prices

• Smaller volumes

• Selective distribution

Specialty Fertilizers vs. Bulk Fertilizers

CRF (Controlled Release Fertilizers)

WSNPK (Water Soluble Fertilizers)

NOP (Potassium Nitrate)

CN (Calcium Nitrate)

Soluble (MAP/MKP)

“Special NPK”

53

Our Advantages in Specialty Fertilizers

Supply chain Production process-technology adding value

Market position R&D Innovate the next generation

• Controlled release fertilizers • Fertigation and foliar solubles • Enhanced nutrients and water efficiency

• Back integrated • Access to high quality raw material • Efficient supply chain (high synergies)

• Highly professional Agronomic Sales team • Integrated and tailored service • Full product portfolio • Distributor loyalty • Strong Branding

54

Industrial Products

Industrial Products: Vast Global Footprint

56

~1,900 worldwide

Of ICL sales in 2015

~20%

Plant

Sales

R&D

Americas* - ~40%

Asia* - ~20%

EMEA* - ~40%

* Of about $1.1B BU sales in 2015

Bromine and Phosphorus based flame retardants for the electronics, automotive, construction, textile and other markets

Elemental Bromine, Mercury emission control, clear brine fluids , HBr and other Brominated and Phosphorus based products

Fuzzicide, Halobrom, BCDMH, C-103 and other products for the water treatment and the gas fracking industries

Flame Retardants

Microbial Solutions

Industrial Solutions

Products

Employees

Sales

Industrial Products - From Assets to Markets

57

Chemistries Key Markets

Back Integration to Customer Solutions

Flame Retardants

Microbial Solutions

Energy & Intermediates

Bromine

Chlorine

Phosphorus

Global Trends Supporting Our Business

58

Population Regulation & Environmental Standard of living

FURNITURE & TEXTILE TRANSPORTATION

WATER TREATMENT

CONSTRUCTION

INTERMEDIATES FOR FOOD,

PHARMA, AGRO OIL & GAS

POWER PLANTS

ELECTRONICS

59

Industrial Products’ Growth Projects - a Significant Contribution To Future Sales

FURNITURE & TEXTILE

TRANSPORTATION WATER

TREATMENT CONSTRUCTION

INTERMEDIATES FOR FOOD, PHARMA,

AGRO

OIL & GAS POWER PLANTS ELECTRONICS

~1,100

Develop new applications while adopting a price over volume strategy

Price over Volume (bromine & phosphorous)

* 40-50% increase in elemental bromine prices in China

* 10-20% increase in Bromine compound prices

* Focused on margin expansion rather than market share

Efficiency improvements

* Operational excellence

* 15% headcount reduction in Israel

* 34% CapEx reduction

* FR-122P plants fully operational

Advocacy

* Protect and improve bromine and derivatives image

* SAFR™ (Systematic Assessment for flame retardants) - An ICL tool to measure the sustainability of FR usage

* Merquel® promotion in EU, China and India

R&D

* In-house R&D & Outside technical collaborations

* Focus on customer unmet needs to bring new products and solutions

* Polymeric FRs, advanced P-based FRs, energy storage, gold extraction, 3-D printing and more

Strategy

Global Cost Leader in Bromine

60

0.02 – 0.03 0.03 – 0.05 0.5 – 0.9

3.5 – 4.5 2.5 – 5.5

11.0 – 12.0 g/liter

UndergroundWells

(China)

Sea Water(China, Japan)

Shallow Sea(Ukraine)

Salt Lake(India)

UndergroundWells (U.S.)

Dead SeaOperations

(Israel, Jordan)

• The Dead Sea provides the highest concentration of Bromine

• Cost is related to concentration

• Abundant supply

Source: ICL estimates, MarketsandMarkets

A Global Leader in a Concentrated Market

61

ICL holds the largest capacity Global Bromine Capacity, by producer

280 280

120 120

95 90

92 87

91 81

64 69

2015 2020

Albemarle (Dead Sea)

ICL (Dead Sea)

Other

Albemarle (US)

Chemtura (US)

China

Bromine demand by industry - 2015

Market utilization rates: ~75%

Flame retardants

41%

Brominated organic

intermediates 21%

Clear brine fluids 18%

Industrial 8%

Biocides 6%

Fumigants 2%

Mercury control

3%

742 727

Source: ICL estimates, MarketsandMarkets

Advanced Additives

Advanced Additives – Vast Global Footprint and Backward Integration

Kamloops

Rancho Krummrich

Sao Jose

dos Campos

Kunming

Knapsack Lawrence

Carondelet

Aix en

Provence

Oviedo

Sdom/

Beer-Sheva

Monterrey Beer-Sheva

Ladenburg

Calais

Hammond

Cajati 63

Fire Safety

P-Salts, Acids

P2S5

Spec Min / P&C

Industrial Specialties

Acids

Fire Safety

P2S5

Specialty Minerals P4

2015 Sales by Business line 2015 Sales of total ICL sales*

83%

17%

*Not including inter-segment sales

Advanced Additives – A Stable Portfolio With Broad Applications

64

P2O5 Chain

65

Technical Phosphates & Related Specialties; Industrial, Food and Specialty Phosphoric Acids

Key Applications: Metal treatment, water treatment, cleaners, oral care, cola drinks, asphalt modification, others

Example Customers & Distributors: o P&G, Henkel, Colgate, Coca-Cola,

Pepsi, Chemetall o Univar, Brenntag

Specialty Minerals / Paints & Coatings

66

Specialty Minerals P & C

Specialty phosphates and blends, selected organic chemistry

Key Applications: Corrosion Inhibition, Flash Rust Inhibitors, Tannic Stain Inhibitors

Example Customers & Distributors: o Sherwin Williams, Behr Paint o Specialty Distributors based on

mutual exclusivity

Magnesium, Potassium, Calcium,

Carnalite and Sodium salts

Key Applications: Deicing, Nutrition, Pharma, Specialty Steel, Fuel Additives, Rubber, others

Example Customers & Distributors: o Pfizer, Bayer, BASF, Cargill Salt and

GSK o Brenntag Specialties, Barrington

and Scotwood (bagged MgCl2 for US deicing market)

P2S5

67

ICL is the only global manufacturer

High barriers to entry Key customers: Chevron,

Lubrizol, Afton and Infineum

Additional sales into insecticide market

Phosphorus pentasulfide (P2S5) is an essential ingredient for modern lubricants

Fire Safety– Expand Through Differentiation

68

Class A Fire

ICL provides products and services that help prevent, control, and suppress fires

World-wide reputation A strong market position

2014 acquisition of Auxquimia: specialists in the Class B Foam for oil, refinery and chemical industry

Complete and broad portfolio Own testing facilities Fluorine free product innovations

Class B Fire

Fire Safety Products

Food Specialties

Food Specialties

ICL

Food Specialties - Providing Solutions to the Global Food Industry

70

Meat

Dairy proteins/other

Bakery

Dairy

Beverages

2015 sales breakdown ~900 Employees

Worldwide 2015 Sales of total ICL sales*

71

Categories and Components

72

Food Specialty – A Fully Integrated Provider of Texture and Stability Solutions

1) Phosphate, whey protein, soy protein, pea protein, soluble fiber, modified starches 2) Other Proteins, fibers and hydrocolloids, emulsifiers

Vision To become a recognized global provider of texture and stability solutions

Strategy Expand product offering via R&D and CAPEX, focusing on protein formulations, to complement our phosphate products

Growing share of protein in eating behavior of consumers in emerging markets

Trend for healthier food (taste & consistent nutritional value) in mature markets

Growing demand for texture and stability ingredients globally

Food Specialties- Increased Global Demand for Proteins

73

Upside potential for protein consumption

per capita

Brazil China

Ethiopia

Germany

India Indonesia

Nigeria

USA

40

60

80

100

120

0 500 1,000 1,500 2,000

Dai

ly P

rote

in /

Cap

ita

(g)

Population (mil)

3.0

7.7 0.45

0.2

'60 '70 '80 '90 '00 '10 '20P

Ara

ble

Lan

d (

ha/

cap

ita)

Wo

rld

Po

pu

lati

on

(b

ilio

ns)

The world population grows, and the arable

land per capita decreases

Decade

Source: GS&PA Research, FAO

Meat Substitutes

74 Source: GS&PA Research, FAO

“Extra“ without meat The vegetarian bestseller

Rovitaris MultiCompounds

Dairy and Beverages

75 Source: GS&PA Research, FAO

Image source: Brand Channel.com

fresh milk

meal

replacer

yoghurt

dairy drink

functional

drink

HIGH PROTEIN APPLICATION IN DAIRY & BEVERAGE

76 Source: GS&PA Research, FAO

10g protein – Designer Whey Protein Blend of WPC, SPI, MPC

10g protein – Pea Protein Isolate

10g protein – SPI

20g protein – Muscle Brownie Protein Blend (WPC, SPI, Wheat Isolate )

20g protein – whey & milk protein

Protein Bars

Protein Drinks

77 Source: GS&PA Research, FAO

Each 8-oz serving from Bolthouse Farms contains 16 grams of protein and at least 9 vitamins and minerals (Protein PLUS Vanilla has 20 vitamins and minerals).

Concept for high protein breakfast replacer

Dairy

78 Source: GS&PA Research, FAO

Contains sodium phosphates & sodium polyphosphate

4g protein – WPC, MPC

Contains WPC & sodium polyphosphate

Contains WPC & sodium phosphates

Thank you