investor presentation -...

Investor Presentation

February 2018

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 of any analysis of the Company and/or its assets and the information contained in this Presentation. Nothing in this Presentation constitutes 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 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, 2016 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.

Corporate Overview

Specialty Fertilizers

12%

Potash & Mg. 24%

Phosphates 18%

Advanced Additives

15%

Industrial Products

21%

Food

Specialties 11%

Leading Global Fertilizer and Specialty Minerals Company

4

2017 SALES

$5,418M

2017 FREE CASH FLOW

$405M

2017 ADJUSTED OPERATING INCOME $652M

MARKET CAP (February 12)

$5.06bn

DIVIDEND YIELD***

3.3% EMPLOYEES – DEC 2017

~13,000

ICL Essential Minerals

Segment

Specialty Solutions Segment


Phosphate Food

Specialties

Advanced Additives

Industrial Products

Potash & Magnesium

Agriculture Industrial

2017 SALES BY BUSINESS LINE *

2017 OPERATING INCOME BY BUSINESS LINE (US$ M) **

Specialty Solutions (Industrial)

Essential Minerals (Agro)

[CATEGORY NAME]

[VALUE]

[CATEGORY NAME]

[VALUE]

Phosphates, 23 [CATEGORY

NAME] [VALUE]

[CATEGORY NAME]

[VALUE]

Food Specialties

51

Note: Sales and operating income according to Organizational Structure as of Q1 2017. All numbers are rounded. * Before setoffs and inter-segment eliminations. ** Before G&A expenses. *** Calculated based on average Market Cap. For full year 2017.

5

Kobi Altman, CFO 3 years in ICL

Charles Weidhas, COO 10 years in ICL

Ofer Lifshitz, President, ICL Essential Minerals 21 years in ICL

Yakir Menashe, EVP Global HR 11 years in ICL

Lisa Haimovits, SVP General Counsel & Company Secretary 8 years in ICL

Rani Loebenstein, SVP, Global CR 3 years in ICL

Hezi Israel, EVP BD & Strategy 10 years in ICL

Eli Glazer, President, ICL Specialty Solutions 34 years in ICL Eyal Ginzberg,

SVP, Global Technology Officer 20 years in ICL

Osi Sessler, SVP ICL Israel & IR 14 years in ICL

Asher Grinbaum, Acting CEO 42 years in ICL

Eli Amon, EVP Specialty Fertilizers 26 years in ICL

Yakov Kahlon, EVP Phosphates 21 years in ICL

Noam Goldstein, EVP Potash & Magnesium 31 years in ICL

James Moffatt, EVP Advanced Additives 12 years in ICL

Anat Tal, EVP Industrial Products, 25 years in ICL

Alon Gil, EVP Sales, Marketing & Logistics 23 years in ICL

Johanan Locker, Executive Chairman 2 year in ICL

ICL management Over 300 years of ICL experience

5

6

Diversified Company, Integrated Along the Value Chains

Potash & PolysulphateTM

Phosphates

Bromine

Potash fertilizers

PolysulphateTM Specialty fertilizers

Compound NPKs

Green Phosphoric Acid

SSP, TSP, DAP, MAP

Pure Phosphoric Acid

Food additives

Controlled & slow release fertilizers

Clear brine fluids Elemental bromine

Mercury emission

Flame retardants

Liquid & water soluble

fertilizers

Industrial phosphate Salts and acids

P2S5, fire safety

Bromine industrial solutions

Potash & Magnesium Advanced Additives Phosphate Food Specialties Specialty Fertilizers Industrial Products

Agriculture Specialties

Grow

Specialty Businesses

Improve Competitiveness of

Mineral Assets

Enhanced Focus on

Specialty Crop Nutrition

Our Strategic Direction

7

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

Mineral Asset Base: Low Cost Dead Sea Production

A high quality and practically inexhaustible source of potash, bromine and magnesium

Low cost

Near-infinite reserve life

Logistical advantages: stockpiling ability, geographical position

Optimization measures: increased production capability by ~10% through ongoing operational excellence while reducing work force by ~10%

China

India

IL

Europe

Brazil

US

8

Mineral Asset Base: Low Cost Dead Sea Production

9

A high quality and practically inexhaustible source of potash, bromine and magnesium

The Dead Sea provides the highest concentration of Bromine

Low cost

Near-infinite reserve life

Logistical advantages: stockpiling ability, geographical position

Optimization measures: increased production capability by ~10% through ongoing operational excellence while reducing work force by ~10%

Mineral Asset Base: Potash, Phosphate and PolysulphateTM Sites

10

Logistical advantages: focus on domestic markets, close to ports, hub centre in Europe

Synergies and optimization within production sites

Cost per tonne reduction

Optimization measures:

ICL UK – shift to polysulphate, labor reduction of ~50% compared to 2015

ICL Iberia– site consolidation, 2018 efficiency plan to include labor reduction

Potash and PolysulphateTM : ICL Iberia, ICL UK

Backward integration to Specialty Solutions

Optimization measures:

Cost reduction through efficiency and operational excellence

Shift to specialties

Phosphates: ICL Rotem, YPH JV

ICL Specialty Fertilizers

ICL Industrial Products

ICL Advanced Additives

ICL Food

Specialties

Focus on Downstream Growth Opportunities in Specialties

Introduce new applications through R&D and innovation

Expand global presence

Bolt on acquisitions to enhance product portfolio and market

Value based pricing strategy

Leverage on global trends

11

New grower practices

Changing food chain

Regulatory support:

Zero growth in fertilizers use in China from 2020

EU Nitrate Directive

U.S. Good Agricultural Practices (GAP)

Population growth, urbanization and reduction in arable land per capita

OPTIMAL PLANT NUTRITION: LESS IS MORE!

Specialty Fertilizers: Focused on Higher-Value Products Growing Faster than Conventional Fertilizer Markets

* FY2017 ** Before setoffs and eliminations. *** Before G&A expenses.

Fertigation/ Soluble Fertilizers

Foliar Fertilizer

Controlled Release Fertilizers

$692M $56M

GROWTH STRATEGY…

Leveraging ICL’s capabilities in the ag market

Taking advantage of the growing use of Precision Ag to develop data driven solutions

Development of advanced, targeted agro-solutions portfolio

Bolt-on acquisitions

… SUPPORTED BY MARKET TRENDS

SALES**

OPERATING INCOME***

FY2017 RESULTS

REVENUE BY MARKET SEGMENT*

Horticulture & Turf

28%

Chemicals & other

10%

Specialty Ag.

62%

Creating a Growth Engine in Specialty Agriculture

12

• New product development including new applications

• Next generation flame retardants

• Advocacy

• Value based pricing

• Cost reduction

Flame retardants

40%

Industrial solutions

46%

Specialty minerals

14%

KEY ADVANTAGES

2017 SALES BREAKDOWN

13

$1.2Bn 2017 SALES*

$303M 2017 OPERATING INCOME**

~1,600

EMPLOYEES WORLDWIDE

• Backward integrated to the lowest-cost source of bromine

• Global leader in bromine capacity

• Largest producer of brominated flame retardants, biocides and clear brine fluids

• Largest Iso-tank fleet

Industrial Products: Impressive Performance Driven by Value Based Strategy and Cost Reduction

Note: Sales and operating income according to Organizational Structure as of Q1 2017. All numbers are rounded. * Before setoffs and inter-segment eliminations. ** Before G&A expenses.

GROWTH STRATEGY

20% CAGR IN OPERATING INCOME

200 225 286 303

16% 22%

26% 25%

0%

5%

10%

15%

20%

25%

30%

50

100

150

200

250

300

350

2014 2015 2016 2017

Operating income Operating income margin

Note: Sales and operating income according to Organizational Structure as of Q1 2017. All numbers are rounded. * Before setoffs and inter-segment eliminations. ** Before G&A expenses.

Nth America 50%

Sth America 13%

EMEA 28%

Asia/Pac 9%

SALES DISTRIBUTIONS 2017

14

$877M 2017 SALES*


~900

EMPLOYEES WORLDWIDE

KEY ADVANTAGES

• Full phosphate chain from rock

to salts

• Largest global footprint in

specialty phosphates

GROWTH STRATEGY

Advanced Additives Benefits from Vast Global Footprint and Backward Integration

Phosphate Acids 38%

Industrial phosphates

38%

P4 3%

P2S5 12%

Fire Safety 23%

• Geographic Expansion

• Product Differentiation

• Cost optimization /

“Lean & Reliable”

• Support growth through opportunistic M&A

GLOBAL SALES FOOTPRINT*

Food Specialties Growth Driven by Global and Portfolio Expansion, Supported by Market Trends

15

2017 BUSINESS LINE BREAKDOWN

$596M 2017 SALES*


~850

EMPLOYEES WORLDWIDE*

* Before setoffs and inter-segment eliminations. ** Before G&A expenses. All numbers are rounded.

MARKET TRENDS

• Growing middle class in emerging markets

• Demand for longer shelf- life

• “On the go”

• Health and Nutrition (gluten free, reduced salt, etc)

GROWTH STRATEGY

• High-growth new applications in Meat and Dairy

• Expand portfolio through tailored solutions

• Increase footprint in growing emerging markets

• Support growth through opportunistic M&A

GLOBAL SALES FOOTPRINT*

Nth America 28%

Sth America 13%

EMEA 28%

Asia/Pac 32%

Spices

6%

Dairy Proteins

25% Food

Phosphates, Blends,

Multi-blends

69%

1,251 1,034 1,120 1,193

654 781 798

877

526 613 659

596

FY 2014 FY 2015 FY 2016 FY 2017

Industrial products Advanced additives Food specialties

Specialty Business Lines’ Sales and Segment Operating Income Development

16

Specialty Solutions Sales ($M)

Segment Operating Income ($M)**

Adjusted to organizational structure as of Q1 2017 * Total prior to elimination of inter-business lines’ sales **Excluding G&A, unallocated expenses and eliminations

2,429* 2,578*

2,430* 2,666*

422 451

534 554

FY 2014 FY 2015 FY 2016 FY 2017

Divestment of Low Synergy Businesses for ~$1.2bn to Improve Balance Sheet and Support Growth

17

Businesses transformed into global leaders, unlocking value for ICL

• Divestments are in-line with ICL’s strategy to exit low synergy businesses and focus on core mineral value chains operations

• ICL transformed the businesses into market leaders by:

Investing in organic growth via R&D, market development and geographical expansion

Bolt-on acquisitions

Building logistic superiority enabling the businesses to be the preferred partner for customers

In December 2017, ICL announced the sale of its Fire Safety and Oil Additives* sub business lines for ~$1bn

• The transaction is expected to close in the first half of 2018

• Proceeds will be used primarily to reduce debt and support growth initiatives

• Including the completion of the separately announced IDE sale for $167M, total proceeds amounts to ~$1.2bn

Divested Businesses’ Financials

$ million 2014 2015 2016 2017

Sales 197 226 245 309

Operating income

51 64 79 116

* Referred to P2S5 elsewhere.

Financial Overview

Q4 and FY2017 Business Performance

Note: See Adjusted Operating Income and Net Income Reconciliation in the Q4 2017 press release for a reconciliation of Adjusted operating income to operating income and Adjusted net income to net income. Numbers may not add up due to rounding and set offs. * Operating income attributed to segments before G&A and other expenses. ** Total Sales include sales from Specialty Solutions, Essential Minerals, Other Activities, and Eliminations. *** Segment Sales before setoffs and inter-segment eliminations. **** Free cash flow =operating cash flow –purchases of property, plant and equipment and intangible assets + dividends from equity-accounted investees (also included in “other”).

$ millions FY2017 FY2016 Q4 2017 Q4 2016

Total Sales** 5,418 5,363 1,361 1,338

Reported Operating Income 629 (3) 189 72

Adjusted Operating Income 652 582 168 140

Specialty Solutions Sales*** 2,650 2,553 651 601

Specialty Solutions Operating Income* 554 534 114 121

Essential Minerals Sales*** 3,008 3,036 780 800

Essential Minerals Operating Income* 359 398 124 103

Free cash flow**** 405 346 137 127

External potash sales (thousand tonnes) 4,687 4,818 1,375 1,632

Average potash selling price - FOB 219 211 222 202

19

Tota

l Sp

eci

alty

So

luti

on

s Es

sen

tial

M

ine

rals

O

the

r D

ata

Strong Q4 and full year performance:

Growth of 20% in adjusted operating income (~160% in Q4 2017 reported operating income) supported by the recovery in the potash market and G&A reduction

FY 2017: stable sales, operating margins expansion and higher free cash flow generation, despite continuous challenging commodity business environment

Execution of prudent capital allocation and successful divestments, contributed to solid financial position

… leading to a continuous positive Free Cash Flow** generation

887

794

680 619

507

337 350 355 401 418

2013A 2014A 2015A 2016A 2017A 2018E

CapEx

Depreciation andAmmortization

Prudent Capital Management Leading to Strong Cash Flow Generation

We Exercise Strict CapEx* Management While Still Investing in Future Growth…

* Additions to PP&E (Non cash) ** Free cash flow =operating cash flow –purchases of property, plant and equipment and intangible assets + dividends from equity-accounted

investees (also included in “other”). See reconciliation table at the appendix.

$ million

$ million

278

74

-27

346

2013A 2014A 2015A 2016A 2017A 2018E

405

20

Committed to Maintaining Financial Stability While Investing in Growth

Drive long-term value creation

Reduce debt level

Deliver solid shareholders’

return

FINANCIAL STABILITY

21

Key Takeaways

Low Cost Dead Sea Production, Geographically

Advantaged Asset Base

Diversified Company, Integrated Along the Value

Chains

Strong Cash Flow Generation and Prudent

Capital Management

Focus on Downstream Growth Opportunities in

Specialties

22

Thank You

24

Specialty Solutions Positioned to Benefit from Growing Global Trends

Environmental Regulations & Sustainability

Ind

ust

rial

P

rod

uct

s

Trend Renewable

Energy & Energy storage

Electric / Smart Vehicles & Home

Automation

Growing Middle Class in Emerging

Markets

Ad

van

ced

A

dd

itiv

es

Foo

d

Spe

cial

tie

s

Limited Clean Water Supply

Food Security

Co

nve

nti

on

al

Fert

ilize

rs

Spe

cial

ty

Fert

ilize

rs

Effective Tax Rate

$ million 2017 2016

Adjusted income before tax 528 506

Income tax rate (including resource tax) 26% 24%

136 121

Carryforward losses not recorded for tax purposes 25 26

161 146

30% 29%

Other items:

Exchange rate impact (mainly ILS vs USD) 18 1

Reduction in tax rates (mainly US 2017, Israel 2016) (13) (32)

Other (mainly deferred tax adjustments) )10( )16(

Adjusted income tax 156 100

Actual Effective tax rate %30 %20

Reported Effective tax rate %31 N/A

See Q4 2017 press release for a reconciliation of Adjusted operating income to operating income

25

-

200

400

600

800

1,000

1,200

2018 2019 2020 2021 2022 2023 2024 2025 2026

480 261

18

214

653

123

1,092

0 46

331

12

Short Term Loans Loans Securitization Maturities

ICL Maturities as of December 31, 2017

83%

34%

53%

6%

66%

47%

0.0% 8% 3%

Banks & others

USD

Debentures

Variable Fixed

EUR CNY Other

USD millions Available credit facilities:

$1.57b

Average Interest rate:

3.5%

26

Essential Minerals Segment

Organizational Structure

ICL

Essential Minerals Segment Specialty Solutions

Segment


Phosphate Potash &

Magnesium Food

Specialties Advanced Additives

Industrial Products

Essential Minerals Segment

28

Potash 4,773 K ton

Phosphate Rock 4,877 K ton

Phosphate Fertilizers 2,094 K ton

Potash 5,039 K ton

Phosphate Fertilizers 2,291 K ton

Polysulphate ~300 K ton

$3.0Bn 2017 SALES*


2017 PRODUCTION 2017 SALES VOLUME

ICL Essential Minerals: Serving Global Agricultural Markets

29

* Before setoffs and inter-segment eliminations. ** Before G&A expenses. Before setoffs and inter-segment eliminations. All numbers are rounded.

GLOBAL PRESENCE

Potash Phosphate Specialty Fertilizers

OF ICL SALES IN 2017

53%

~ 7,000

EMPLOYEES WORLDWIDE

53% 47%

Essential Minerals

Specialty Solutions

ICL Essential Minerals - Organizational Structure

30

Business Development

HR

Finance

Sales, Marketing & Logistics

Alon Gil

23 years in ICL


Eli Amon

26 years in ICL

Phosphate

YakovKahlon

22 years in ICL

Potash & Magnesium

Noam Goldstein

31 years in ICL

President, ICL Essential Minerals Segment

Ofer Lifshitz

21 years in ICL

ICL Essential Minerals Division

Agriculture

Potash PhosphateSpecialty Fertilizers

Commodity Semi-specialty Specialty

31

32

Growing

population

Dietary

shifts

Arable land

per capita

Biofuels

More grains

Increased yields

More fertilizers

Morepeoplewantmore… Demand for fertilizers is closely linked to the demand

for food and fuel crops

Global Fertilizer Demand

33

Meat Consumption

Population

Fertilizer consumption

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

Ind

ex, r

elat

ive

to 1

96

2

Population, Meat and Fertilizers [Base 1962]

Fertilizer demand increases faster than population growth Correlates better to improved dietary consumption Economic crisis affects fertilizer consumption short term,

but has minor effect on meat consumption

Source: IFA, USDA, USA Census

34

Cereals 37%

Oilseeds 20%

Tot. Other 43%

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

Total Fertilizer Use by Crop at Global Level

Cereals and Oilseeds Account for 62% of Fertilizer Consumption

35

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

Source: OECD-FAO Agricultural Outlook 2017-2026 (Jul 2017)

16%

20%

24%

28%

32%

36%

40%

44%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Sto

ck t

o U

se R

atio

Bill

ion

To

nn

es

Wheat Corn Rice Soybeans Ending stocks Stock to Use

Stock to use Ratio Consumption

Global Fertilizer Consumption

4%

9%

Global market share

36

-

20

40

60

80

100

120

140

19

67/6

8

19

69/7

0

19

71/7

2

19

73/7

4

19

75/7

6

19

77/7

8

19

79/8

0

19

81/8

2

19

83/8

4

19

85/8

6

19

87/8

8

19

89/9

0

19

91/9

2

19

93/9

4

19

95/9

6

19

97/9

8

19

99/0

0

20

01/0

2

20

03/0

4

20

05/0

6

20

07/0

8

20

09/1

0

20

11/1

2

20

13/1

4

20

15/1

6

20

17/1

8

20

19/2

0

20

21/2

2

million m

t nutr

ient

Source: IFA – Medium Term Outlook for World Agriculture and Fertilizer Demand (May 2017)

23%

20%

12%

26%

18%

Canpotex Uralkali APC BPC ICL

26%

17%

22%

7%

12%

Russia Belarus Canada Jordan ICL

Potash Market Share

India Brazil China

3.8 Mt 8.8 Mt 6.8 Mt

Total Im

po

rt 20

16

29%

17% 6%

22%

13%

Canpotex Uralkali SQM BPC ICL

37

4.5 Mt 9.2 Mt 7.5 Mt Total Im

po

rt 20

17

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

38

TSP Trade 2017

China 32%

Morocco 30%

Israel 14%

Tunisia 9% Bulgaria

4% Mexico

4%

Others 7%

Major Exporters

Brazil 24%

Bangladesh, 16%

USA 6%

Indonesia 12% W. Europe

12%

Others 30%

Major Importers

Total Global Trade = 1.7 Mt P205

Source: CRU Phosphate (Jan. 2018)

6 exporting countries control 93%

of total global Trade

Brazil Imported 24% of global

traded TSP.

PhosphateGreen Phosphoric

Acid

SSP, TSP

Pure Phosphoric

Acid

Food additives

Controlled & slow

release fertilizers

Liquid &

water soluble

fertilizers

Industrial phosphate Salts and acids

P2S5, fire safety

Phosphate - Operational Advantages

The operational advantages of Phosphate,

starting with the P2O5 value chain

Phosphate Specialty Fertilizers Specialty solutions 39

Only producer in the market

Existing infrastructure (mine, shaft, logistics)

Vast market knowledge, agronomy and marketing infrastructure

Developing continuous products and applications

Polysulphate™: The Future of ICL UK

A PREMIUM NICHE FERTILIZER WITH UNIQUE BENEFITS

50%

14% K

Sulfur

36% Mg+Ca

0

1,000

2,000

3,000

2016 2017 2020 LT potential

K Tonnes

Market Demand Outlook

ICL’s Advantages

4 nutrients in one balanced and efficient fertilizer

Special release pattern that enables ‘Extended Availability’

Natural fertilizer- certified for organic agriculture

Mineral Attributes

40

Transforming ICL Iberia into a Long Term Competitive Site

Cabanasas Mine Suria Plant

Vilafruns Mine Sallent Plant

Executing operational improvements through the consolidation of two mines into one, cost-effective production center, while reducing the cost per tonne

Building access ramp

Expanding capacity in the Suria facilities

Vacuum salt plant

- Salt removal infrastructure

New port terminal

Logistics infrastructure

1

3

2

41

YPH

YPH

YPH – JV of ICL and YTH since end 2015 • To become a player in the Chinese market. • Establish the same Value Chain as in Rotem.

ICL has history of more than 20 years of activity in China

What was done till now ? Integration Operational excellence Moving from Commodity to Specialty.

Objectives:

42

Key Takeaways

P2O5 value chain in Israel and in China

Significant potash presence in emerging markets

New semi-specialty activity

Low production cost

Great potential growth for the SF BU

Experienced management team

43


ICL


Segment


Phosphate Potash &

Magnesium Food


Industrial Products


45

Global Needs Evolve

Population is constantly growing

46

Global Needs Evolve

Urbanization keeps on spreading

47

https://globalwarmingsolved.com/2013/12/summary-urbanization-bias-papers-1-3/

Global Needs Evolve

Arable land per capita is diminishing

1 BN

2 BN

3 BN

4 BN

5 BN

6 BN

7 BN

8 BN

9 BN

48

49

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

Others, 32%

Traditional Fertilizers, 63%

Specialty Fertilizers 3.5%

~$150bn

Nontraditional application of nutrients (i.e. Soluble, Liquids and Coated)

Advanced bio solutions for plant nutrient and protection

Bio Solutions 1.5%

Micro Nutrients 1%

Nutrients consumed in small quantities2

N,P,K and Secondary

nutrients1

1 Calcium, Magnesium and Sulfate 2 iron, cobalt, chromium, copper, iodine, manganese, selenium, zinc and molybdenum

Specialty Fertilizers market / ~$9bn

50

ICL Specialty Fertilizers’ Global Foot Print

India

Japan

Malaysia

Australia

Kenya

Turkey Germany

Poland

Italy

France

Brazil

US

Sales Offices Production sites

~900 Employees Worldwide

47%

25%

17%

11% Europe

Americas

ASIAPAC

MEAI

$692m 2017 Sales

$56m 2017 Operating Income

51

ICL SF Has a Broad Offer of Unique Specialty Fertilizer Technologies

Foliar Fertilizer

Optimal Plant Nutrition Less is more!

Fertigation/ Soluble Fertilizers

Controlled Released Fertilizers

ICLSF has developed specialized fertilizer

products that match application technique: foliar,

drip or soil applied

52

Our Core Market

Specialty Agriculture Fruit, vegetables & arable crops

Turf & Landscape Golf courses, sports fields & landscape

Ornamental Horticulture Nursery stock, perennials, pot & bedding plants

53

Our Core Markets and Products


Liquid Fertilizers

Growing Media Grass Seeds

Water Soluble Fertilizers (WSF)

Controlled Release Fertilizers (CRF)

Straights (MAP / MKP / Pekacid)

Plant Protection Products

Adjuvants Water Conservation Agents

Liquid Fertilizers

Slow Release Fertilizers

Specialty Agriculture Fruit, vegetables & arable crops


Ornamental Horticulture Nursery stock, perennials, pot & bedding plants

68%*

13%* 19%*

* 2016 Revenues ($660M)

54

Our Core Markets and Products / Turf

Most stadiums of “La Liga” use ICL products (fertilizers& seeds)

Camp Nou

55


Wimbledon

56


Cardiff

56

57

ICL Specialty Fertilizers is a Leader in the Market

2010

2011

04

2011

05

2012

Xcalibur

(USA)

11

2012

09

2014 1993

58

ICLSF is a Leader in the Market

Turf, Ornamental Horticulture & Landscape

• Leader in Turf in Europe & Middle East

• # 1 in CRF/Solubles in Ornamental

59

Strong Positioning in the Spec-Ag Market

Specialty Agriculture

• # 1 in Crystaline PK solubles

• #1 in Liquids in Spain and Israel

• Top 3 in Fertigation

60

Global Players by Product Categories Coated Fertilizers Solubles / Straights Liquids

SRF CRF Soluble

NPK

MAP/

MKP SOP/CN NOP

Bulk

Liquids

Foliar

Liquids

ICL-SF ^ ^ ^ ^ ^ ^

Compo ^ ^ ^ ^

Haifa Chemicals ^ ^ ^ ^

YARA ^ ^ ^

SQM ^ ^ ^ ^

Kingenta ^ ^ ^ ^

Haifa SQM YARA Kingenta Compo ICL-SF

2.7

0.9 1.4

3.5

2.9

0.9

1.6

3.8 4.3

1.5

2.8

5.4

Water Soluble Fertilizers Liquid Fertilizers (NPK's) Controlled / Slow Release Fertilizers Foliar Liquid Fertilizers

Market in 2013 $8.5 bn (inc.Foliar)

Market in 2015 $9.2 bn (inc.Foliar)

Expected Market in 2023 $14 bn

5% 5% 7% 4% CAGR 2013-2023

World Market Trends in the Key Segments

Reduce cost of production

Expand Product Portfolio

Establish production in attractive markets

New cost efficient coating generation

New production plants with focus on

emerging markets

Grow with R&D and new Strategic Partners

SpecAg / Main growth driver 61

62

Key Takeaways

ICL Specialty Fertilizers An attractive investment opportunity

Fast Growing Industry Driven by Global Trends

Leader in Key Markets Well Positioned for Growth with Wide Portfolio

Efficient Supply Chain

and Strong Professional Sales Force

Established Brands End User Inspired Innovation


ICL


Segment


Phosphate Potash &

Magnesium Food


Industrial Products


64

Phosphate Acids 26%

Industrial Phosphates

17%

Phosphate Food

Additives 36%

Specialty Solutions Profile

65 65

~ 3,500

2017 PHOSPHATE VALUE CHAIN SALES*

% SALES BY BUSINESS UNIT

22%

$2.7B SALES*

$554M OPERATING INCOME**

Food Specialties

45% Industrial Products

33% Advanced Additives

EMPLOYEES WORLDWIDE

Advanced Additives Food Specialties Industrial Products

NA 35%

Asia/Pacific 24%

EMEA 34%

SA 7%

SPECIALTY SOLUTIONS SALES DISTRIBUTION

* Before setoffs and eliminations

** Before G&A expenses

All numbers are rounded

2017 MAIN FINANCIAL RESULTS


Food Specialties

Advanced Additives

Industrial Products

James Moffatt, EVP Advanced Additives and Food Specialties 12 years in ICL

Anat Tal, EVP Industrial Products, 25 in ICL

Eli Glazer, President, ICL Specialty Solutions 34 years in ICL

Specialty Solutions’ Organizational Structure

66

Global Leaders

67

Full phosphate chain from Rock to Salts: largest global merchant marketer of Purified Phosphoric acid

Variety of single, multi blends and agglomeration technology

Highest concentration of Bromine in the World

We Have Built a World-Class Advanced Additives Portfolio

68

Phosphate Salts and Acids Paints and Coatings

Description • Technical Phosphates & Related Specialties; food and technical grade Phosphoric Acids

• Specialty phosphates and blends, selected organic chemistry

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

• Corrosion Inhibition, Flash Rust Inhibitors, Tannic Stain Inhibitors

Example Customers & Distributors

• P&G, Henkel, Colgate, Coca-Cola, Pepsi, Chemetall

• Univar, Brenntag

• Sherwin Williams, Behr Paint

• Specialty Distributors based on mutual exclusivity

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj1hIOG7uPMAhWF7oMKHQFgAWIQjRwIBw&url=http://www.mannabros.com/drywall-painting-company&bvm=bv.122129774,d.amc&psig=AFQjCNFZZWknQEqCtHM2Ip6IXYR06YauHA&ust=1463668988427367

Phosphate Value Chain - Markets and Competition

69

EUROPE NORTH AMERICA LATIN AMERICA

Source: market size (acid/salts) via internal analysis, published data & other market reports

ICL

ICL

Prayon

Budenheim

FOSFA

Other

ICL

Prayon

Budenheim

PotashCorp

Innophos

Other

ICL

Prayon

Innophos

Chinese

Other

ICL ICL

Description • $200M in 2016 sales

• Providing solutions for modifying texture and stability of food products, including meat substitutes

• $280M in 2016 sales

• Produces milk and whey proteins for food ingredients

• Provides integrated solutions based on dairy proteins and phosphate additives

• $180M in 2016 sales

• ICL leavening acids impact the appearance, texture and volume of bakery products

Key Applications • Continued development of applications for low-sodium salts (SALONA™) from the Dead Sea

• Development of new products based on milk proteins

• Novel product applications by exploiting synergies between food phosphates, proteins, starches and fibers

Recent Acquisitions • In 2014, completed acquisition of the Hagesud Group, a German producer of premium spice blends and food additives for meat processing

• In 2015, completed acquisition of Prolactal GmbH, a leading European producer of dairy proteins

Key Customers

Vast Product Portfolio Serving a Variety of End Markets

70

Meat, Poultry and Seafood:

Dairy and Dairy Protein: Bakery and Other:

Food Specialties: Markets and Competition

71

Food Phosphates, Blends & Multi-Blends

2017 sales: ~$410M

Dairy and Protein

2017 sales: ~$150M

Spices

2017 sales: ~$35M

Main Takeaways for Advanced Additives & Food

72

Backward integration

The only Global player with worldwide presence

Innovation capabilities & human capital

Growing sales and margins despite competitive market environment

Industrial Products


ICL


Segment


Phosphate Potash &

Magnesium Food


Industrial Products

Industrial Products

74

Global Presence

Plant R&D Sales

office

75

USA

Israel

IP America

Gallipolis

Ferry

Tarrytown

Beer-Sheva

IMI

Dead Sea Bromine

Dead Sea Salts

Periclase

Neot- Hovav

ICL Israel

Europe

Far East

India

ICL India

SBCL

LYG

Zhapu

ICL Hong Kong

ICL Shanghai

ICL Korea

ICL Japan

IP Bitterfeld

IP Terneuzen

Scora

IP Europe

ICL-IP Product Supply Chains

76 * RM sourced from 3rd parties

Specialty

Minerals

plants: Israel

France*

Bromine compounds plants:

Israel Netherlands

China

Phosphorus compounds plants:

Germany USA

MgCl Salts KCl

Purchased

Customers

Produced

Global Leader in Bromine

0.06 – 0.11 0.1 – 0.2 0.5 – 0.9

2.5 – 4.5

4.5 – 5.5

10.0 – 12.0 g/liter

Sea Water(China, Japan)

UndergroundWells

(China)

Shallow Sea(Ukraine)

Salt Lake(India)

UndergroundWells (U.S.)

Dead SeaOperations

(Israel, Jordan)

• The Dead Sea provides the highest concentration of Bromine

• Abundant supply

Source: ICL estimates, MarketsandMarkets

77

• Cost is related to concentration

280 280

120 120

170 165

90 75

71 84

2016 2021

724

A Global Leader

ICL holds the largest capacity (KMT)

Global Bromine Capacity, by producer

Albemarle (Dead Sea)

ICL (Dead Sea)

Other

USA (ALB & LXS)

China

Bromine demand by industry - 2016

Market utilization rates: 70-80%

730


78

Flame Retardants

41%

Brominated organic

intermediates & Industrial

34%

Clear brine fluids

15%

Biocides7%

Mercury Control

4%

Global Trends and Major End Markets

Population Regulation & Environmental Standard of living

FURNITURE & TEXTILE TRANSPORTATION

WATER TREATMENT

CONSTRUCTION

INTERMEDIATES FOR FOOD,

PHARMA, AGRO and Other OIL & GAS

POWER PLANTS

ELECTRONICS

79

ICL-IP Market Leadership

in Flame Retardants

in Bromine capacity

in Bromine compounds plant

in Bromine Iso-tank fleet

in Brominated biocides

in Phosphorus FRs

in Clear Brine Fluids

in Self-extinguishing Hydraulic fluids

in Solid MgCl

in Magnesia for Nutraceutical market 80

81

ICL-IP 4 Pillars Strategy

Grow the Core business: Organic growth Value strategy Portfolio management Expansions

Cost reduction: Operational excellence Reduction of total costs

Advocacy: FR Standards SAFR™ Merquel® in China/EU Chemistry ban defense

Grow the Portfolio: New solutions focused on

un-met needs. Outside technical and

business collaborations

82

Proven Strategy Results

Restated to include Specialty Minerals

200 225

286 303

1,251

1,034 1,119

1,193

0

200

400

600

800

1,000

1,200

1,400

2014 2015 2016 2017

0

150

300

450

Operating Income Sales

16%

22%

26%

US$ million

25%

Regulation

New target 1-7 Yet to

follow

1.3

Existing 1-30 30

Major Trends and ICL Solutions

83

Trends

Clean Air Mercury Emissions Control

MERQUEL®

ICL’s Solutions

Comparison of Hg Emission limits (µgr/m3)

84

Renewable energy Energy storage

Electrolytes for Bromine Flow battery

Trends ICL’s Solutions


85


Electric car/ Autonomous car

New generation polymeric FRs


86



Home automation New generation polymeric FRs

87


Water shortage and treatment

New Biocides


Bromine

Bromine Compounds

Isotanks

Other services

88




Depletion of Bromine in China

Secured capacity of:

Albemarle (Dead Sea)

ICL (Dead Sea)

Other

USA (ALB & LXS)

China

280 280

120 120

170 165

90 75

71 84

2016 2021Bromine Capacity

Key Takeaways

89

A leader in the Bromine industry

Well positioned for future opportunities

Clear, proven, value based strategy (16 VS 14 O.I increased by 58%)

Live

90

Thank You

investor presentation -...

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