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Investor Presentation August 2015

Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

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Page 1: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Investor Presentation

August 2015

Page 2: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Safe Harbor

All statements in this communication, other than those relating to historical facts, are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended These forward-looking statements and projections are not guarantees of future performance and are subject to a number of assumptions, risks, projections and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements or projections. Important factors that could cause actual results to differ materially from our expectations include, among others: loss or impairment of business licenses or mining permits or concessions; natural disasters; failure to raise the water level in evaporation Pond 5 in the Dead Sea; accidents or disruptions at our seaport shipping facilities or regulatory restrictions affecting our ability to export our products overseas; labor disputes, slowdowns and strikes involving our employees; currency rate fluctuations; rising interest rates; general market, political or economic conditions in the countries in which we operate; pension and health insurance liabilities; price increases or shortages with respect to our principal raw materials; volatility of supply and demand and the impact of competition; changes to laws or regulations (including environmental protection and safety and tax laws or regulations), or the application or interpretation of such laws or regulations; government examinations or investigations; the difference between actual reserves and our reserve estimates; failure to integrate or realize expected benefits from acquisitions and joint ventures; volatility or crises in the financial markets; cyclicality of our businesses; changes in demand for our fertilizer products due to a decline in agricultural product prices, lack of available credit, weather conditions, government policies or other factors beyond our control; decreases in demand for bromine-based products and other industrial products; litigation, arbitration and regulatory proceedings; and war or acts of terror. More detailed information about factors that may affect our performance may be found in “Risk Factors” in our Annual Report Form 20-F filed with the U.S. Securities and Exchange Commission on March 20, 2015. Forward-looking statements and projections represent our views and are given only as of the date of this communication and we disclaim any obligation to update or revise them, whether as a result of new information, future events or otherwise, except as required by law.

All information included in this document speaks only as of the date on which they are made, and we do not undertake any obligation to update such information afterwards. Some of the market and industry information is based on independent industry publications or other publicly available information, while other information is based on internal studies. Although we believe that these independent sources and our internal data are reliable as of their respective dates, the information contained in them has not been independently verified and we can not assure you as to the accuracy or completeness of this information.

2

Page 3: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Index

3

INDEX

Main Deck 1-28

Company Vision, Business Model, End Markets, Asset Portfolio 4-11

Q2 Financial Results Summary 12-13

Business Strategy 14-28

Appendices 29-106

ICL at a Glance, Our Story 30-31

Financial Review 32-38

Agriculture 39-71

Engineered Materials 72-91

Food 92-97

Efficiency and Operational Excellence 98-106

Page 4: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

What We Do Evolves From Humanity’s Essential Needs

4

Humanity’s evolving needs are being driven by global mega trends:

Natural population growth and diminishing arable land per capita

– demand for more crops

Rise of the middle class and standard of living – demand

for higher quality food

Increased use of natural resources – the need to expand

mining operations

Environmental stewardship and sustainability – demand for new

environmental solutions

Page 5: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Our Vision: Fulfilling Humanity’s Essential Needs

5

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

Page 6: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Unique Business Model - Using Resources and Reaching Customers Globally

6

Unique Portfolio of Mineral Assets

Integrated Value Chain

Potash, Phosphates Bromine Magnesium

Potash Potash Phosphate

Mining Chemistry Formulation

Leading Positions in Concentrated Global Markets with Strong Fundamentals

Leading Positions

Israel China

Spain

UK

Ethiopia

Potash Polysulphate

US

Phosphate

Page 7: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Integrated Value Chains Provide Significant Synergies

7 7

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

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

Page 8: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

From Needs to Products

8

End Markets

Flame Retardants

Industrial Solutions

Advanced Additives

Engineered Materials

~$470M ~$780M ~$650M

Food Specialties

Food

~$530M

Segments

Business lines

Contribution to sales*

Potash Fertilizers

Phosphates Fertilizers

Specialty Fertilizers

Agriculture

~$1,820M ~$910M ~$770M

* In 2014, including inter-segment sales

Page 9: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

From Vision to Value – Our Main Objectives

9

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

Increased demand for and use of natural resources

Environmental stewardship and sustainability

Be at the forefront of market trends

Capture the demand that arises from the market needs at an above average profitability

Strengthen our value chain through operational excellence & cost efficiency to better serve our markets

Page 10: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Unique Portfolio of Mineral Assets – Existing Assets

10

Logistical advantage - close to port of Barcelona

Vast reserves

Cost reduction initiatives

Significant expansion plans

Logistical advantage - close to Teesside port

Improved capacity utilization

Polysulphate – increase production to 600,000 tonnes

ICL UK ICL Iberia

Dead Sea

Potash, Bromine Magnesium

Potash Potash Polysulphate

Relatively low cost in potash, the world’s lowest in bromine

Near-infinite reserve life – potash and bromine

Logistical advantages – stockpiling ability, geographical position

Ongoing operational efficiency measures, including labor reduction

Integrated value chain highly biased towards value added specialty products

Successful efficiency and operational excellence plan at Rotem

Negev Desert

Phosphate

Page 11: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Unique Portfolio of Mineral Assets – Under Development

11

Phosphate - value creation in China

Shift from commodity to specialty

Chinese JV

Phosphate

Danakhil project in Ethiopia

First potash mine in Africa

Production in less than 5 years

ICL Africa

Potash

Constantly examining new opportunities to expand our mineral assets

Fit to our strategy – close to end markets, ability to expand or develop an integrated value chain, adequate shareholder return

Future Opportunities

Potash Phosphate

Page 12: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Q2 2015 Financial Results Summary

Page 13: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

1,535 1,196

19 61 61 253

127 100

13

Q2 2015 Highlights and Financial Results

Q2 2015 Sales Q2 2015 Adjusted operating income

Numbers may not add up due to rounding

$ millions Q2 15 Q2 14

% change Q1 15

% change

Revenues 1,196 1,535 (22.1)% 1,403 (14.8)%

Operating income 107 78 37.2% 315 (66.0)%

Adjusted operating income

251 243 3.3% 275 (8.7)%

Net income 75 68 10.3% 217 (65.4)%

Adjusted net income 177 214 (17.3)% 193 (8.3)%

Cash flow from operations

325 121 169% 66 392%

243 251

6 19 29 36

10

Progress of efficiency initiatives fully on track

Second half performance to be supported by elevated potash sales and improved profit margins

Strategic progress: acquisition of Allana Potash completed, significant advance in Chinese phosphates JV

Page 14: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Business Strategy

Page 15: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Strategy Highlights

15

Unique business model Build global

integrated value chains

Execute on $350M efficiency improvements Improve positioning

on production cost curve

Cross-organization process improvement

Grow core business Organic growth Acquisitions

Mineral assets Capability

Enhancing Acquisitions

Asset allocation focused on total shareholder return Divestiture of non-core

assets Attractive dividend

policy

Page 16: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Efficiency Initiatives Contribution – Segment Breakdown

16

USD millions/year

2016 efficiency gains run-rate of $350M Segment run-rate contribution

2016E2015E2014A

ICL PP

ICL IP

Phosphatesand fertilizers

Potash

$240 million

$120 million

$350 million

Procurement

Energy

Commercial excellence

R&D

Production cost

efficiency

Page 17: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Operational Excellence Goals at Our Production Sites

17

ICL UK ICL Industrial Products, ICL Performance Products

ICL Dead Sea

Potash Engineered Materials, Food

Potash Polysulphate TM

Additional production of 400kt annually beyond the 3 years compensation for the strike losses

Potash cost per tonne reduction of ~ $10 by 2016

EBITDA contribution of ~$50 million by 2016

Increase production of main products vs. 2013 level : MGA - ~15% Fertilizers - ~10%

EBITDA contribution of ~ $80 million by 2016

ICL Rotem

Phosphate

Increased potash production by 40% vs. 2013 level

Potash cost per tonne reduction of ~ $40 by 2016

EBITDA contribution of ~$50 million by 2016

Operational Excellence initiatives implementation started in 2015

Labor costs reduction at ICL Neot Hovav and the elemental bromine plant at the Dead Sea

ICL Iberia

Potash

Reduce our fixed costs per tonne by around €40/t by 2020

EBITDA contribution of ~$20 million by 2016 and ~$50 million by 2020

Page 18: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Operational Efficiency Achievements in Israel

18

Over 250 (over 10%) employees have already left both sites Headcount

Reduction Approx. 50 employees will leave the company by 2018.

ICL Dead Sea, ICL Neot Hovav

ICL Neot Hovav

Managerial Control

& Efficiency Initiatives

Flexible deployment of employees

ICL Dead Sea estimated additional production capability

~400kt per year

Reduction and control over employee benefits costs

Production

Management decision on staffing levels, work practices and structural changes

Freedom to implement Shared Services & pursue Operational Excellence

ICL Dead Sea, ICL Neot Hovav

Page 19: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Investment into Operational Excellence in Israel

19

Strike impact - 2015

NPV of economic benefit: at least $170 million

Total economic impact ($M, NPV) ~(90)

Total benefits ($M, NPV) ~260

Benefit from bromine and compound price increase – estimated annual contribution ($M/year)

~ 20

Higher than expected recovery of potash in the ponds ($M/year) 10 – 20

Ability to implement ongoing productivity improvements in ICL DS and Neot Hovav

Potential upside

Impact on operating income ($M) ~(260)*

Impact on net income ($M) ~(200)*

Benefits – anticipated continuous operational improvements

* Including 2H strike impact of ~$15M on operating income and ~$11M on net income

Page 20: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Challenging Israeli Business Environment Does not Present Further Downside

20

Taxation Environment Natural resources tax Royalties Corporate tax and investment incentives Opportunity to gain back some of the investment incentives

Extension of Mining Rights Future phosphate mining in Israel Dead Sea concession beyond 2030 High barriers to entry for competitors

Golden Share Special State Share protects its vital interests Restricts the transfer of certain assets outside Israel A veto right in case of a take over Opportunity to create a comprehensive dialogue with Authorities

Labor relations in Israel Approx. 5,000 employees in Israel 78% are unionized Opportunity for a transformation

Page 21: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Opportunities in Potash, SOP and PolysulphateTM to Increase Production

21

Potential gradual increase of production capability

5.3 5.1

7.8 0.13

1.0

0.5

10.0%

7.5% 9.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2

4

6

8

10

2005A 2015E 2025E

Million tonnes Potash Polysulphate SOP Potash market share

Incremental potash production – short term & brownfield potash

Project Production (Mt)

Comments

ICL Iberia 0.3 1st stage brownfield expansion

ICL Dead Sea 0.4

Polysulphate TM

1.0 By 2020

Incremental potash production – long term

Project Production (Mt)

Comments

ICL Iberia 1.0 2nd stage brownfield expansion

ICL Ethiopia - potash

1.0 - 1.5 Subject to detailed engineering planning

ICL Ethiopia - SOP

0.5 Subject to detailed engineering planning

Source: Industry publications, ICL estimates

~

Page 22: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

JV in China – Strategic Progress of an Attractive Opportunity

22

Management team fully in place

The R&D agreement was signed on June 2015

11 projects were jointly agreed in Food, Engineered Materials, Agro and process improvement. Additional projects by year-end

The JV in Numbers

$183M in the JV. $270 in the listed company Investment

~550M in year 1 to ~700M in year 5 Revenues

Low teens in year 1 to high teens in year 5 EBITDA Margins

~7.4x EV/EBITDA multiple in year 2 EV/EBITDA

About $340 million spread over 5 years Additional CAPEX

From the first full year of operations Cash EPS Accretion

Aggregate JV Production capability

6.5mt 2.5mt Phosphate Rock

2.7mt 850kt Fertilizers

895kt 115kt Specialty Fertilizers

1.3mt 700kt Phosphoric Acid

350kt 60kt Purified Phosphoric Acid

Transaction approval on track, demonstrating local authorities support

Approvals have partially already been granted

Approval process continues to be very constructive

Page 23: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

23

Fulfilling Potash Demand Growth Potential in India

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

Page 24: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

24

Africa – Driving Demand in an Unexploited Potash Market

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:

Demonstration plots, outreach to farmers

Soil fertility mapping

Research and validation

Expansion into Tanzania

Page 25: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

25

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

0.7 1.4

0.8

1.4 1.4

2.6

2023

5.4

2014

2.9

Market USD bn

1 Other straights includes MAP/MKP, Calcium Nitrate, SOP

ws NPK

NOP

Other Straights1

9%

SOLUBLES

2023

5.4

2014

3.5

5%

FOLIAR LIQUIDS

2023

3.5

2014

0.9

16%

Controlled Release Fert.

ICL Specialty Fertilizers Growth Pillars

Establish production in

attractive markets

Enlarge Product Portfolio-

New Potassium Nitrate

production plant

Reduce cost of production

New production

plants with focus on

emerging markets

Grow with R&D

and new Strategic

Partners

New cost efficient

coating generation

Page 26: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

26

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

Growth areas – short to mid term

Next generation Polymeric and Reactive flame retardants

Brominated biocides

Merquel and Clear Brine Fluids

Purified potassium chloride

Energy Storage

2020 estimated contribution

Potential sales of ~$150M with above average operating income

Growth areas – long term

Energy storage

Gold extraction

Soil fumigation

3-D printing

Significant contribution beyond 2020

Growing core business through in-house R&D

Margin expansion, pricing, focus on customer unmet needs

Advocacy: SAFR™ (Scientific Assessment for Flame Retardants), Merquel® in China/EU

Implementing

growth strategy

Page 27: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Leveraging ICL’s natural resources and technology in a diverse portfolio of applications

Industrial applications: grow through geographic expansion and product differentiation

ICL Performance Products – Full Focus on Core Business

27

Leveraging our proprietary technology in the rapidly developing market space for creative food with unique ingredient systems

New products, functional blends, protein modifiers

Geographic expansion: Asia, LATAM

New ingredients, technologies through M&A

Food Specialties Advanced Additives

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15E '16E '17E '18E '19E

Op

erat

ing

Inco

me

%

Rev

enu

e (

m$

)

Core (Rev $) Non Core (Rev $) Core (OI %) Non Core (OI %)

Thermphos -

P2S5 business

$1,711M

Estimated CAGR 2015-2019: 4-6% Estimated operating margin expansion: about 150-250 basis points

Page 28: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Thank you

Page 29: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Appendices

Page 30: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

ICL at a Glance

30

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 (2014) outside of Israel

FY2014 dividend yield: 8.3% (including special dividend) (2)(3)

Company Snapshot

Key Statistics (3) Our Business Segments

US$Bn

Market Capitalization 8.4

Net Debt 2.6

Enterprise Value 10.8

Main Shareholders Israel Corp 46.2%

PCS 13.9%

Q2 2015 Q2 2014

Revenue 1.2 1.5

Adj. EBITDA 0.34 0.34

% Margin 29% 22%

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 in 2014 divided by current market capitalization 3 Market data as of August 13, 2015; Net debt calculated as total debt less cash, cash equivalents and short term investments

Page 31: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Our Story: “Needs Evolve, So Do We”

31

Page 32: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Financial Review

Page 33: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Financial Priorities

33

Value Creation Support strategic moves Enable inorganic moves Total shareholders return

Dividend policy – up to 70% of net income

Share price attention

Create Enabling Platform Maintain a healthy equity/debt ratio –

up to 2.5 net debt/EBITDA Available lines of credit - $1.5 to 2.5Bn Operational excellence and efficiency

initiatives - $350M by 2016 Increase free float in the NYSE

Solidify Foundations Cost control – lean mindset Internal financial disciplines

Page 34: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Cash flows from

operating activities

(Incl. Growth)

80%

Divestment 5%

Debt 15%

Investing Activities

35%

Investing Activities

for Growth

25%

Dividends 70% of NI (Incl. from Growth)

40%

Accumulated sources and uses 2015-2019

34

5-Year Capital Allocation Supports Growth and Shareholder Return

Debt metrics meet investment grade rating requirements

Maintaining Investment Grade Rating while Fulfilling Future Growth Initiatives and Dividend Payout Ratio

2.40

2.00

36%

34%

20%

23%

26%

29%

32%

35%

38%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Net Debt/Adj. EBITDA Funds From Operations/Net Debt

Page 35: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Comfortable Repayments Load

35

0.8 1.2 Utilized

Unutilized

Credit line utilization in $Bn

ICL debt maturities in $M

* Pro forma post new club deal utilization and cancelation of older ones

Total $2Bn

USD 92%

Floating 54%

Bank & others 61%

Euro 6%

Fix 46%

Debentures 39%

Other 2%

-

200

400

600

800

1,000

1,200

Total Debt: $2.7Bn

Avg. Interest 2.9%

Page 36: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Declining Share of Labor Costs in Revenues

36

Labor costs In US$ millions, Share of labor costs in sales

* Excluding new projects, M&A

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-

200

400

600

800

1,000

1,200

1,400

Labor Costs Labor Costs out of Revenues Linear (Labor Costs out of Revenues)Labor costs of Revenues Trend line

Page 37: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

0

500

1,000

1,500

2,000

2,500

Potash Phosphates Specialty Fertilizers Engineered Materials Food Specialties ROIC

Growth and Efficiency Initiatives Support Future EBIT and ROIC

37

Business units’ EBIT and ROIC ROIC: 16-17%

Agriculture

Page 38: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

95 180 545 966 549 998 1131 1019 634 845

2.3%

3.1%

5.1% 5.3%

4.2%

5.9%

6.1%

7.1%

4.8%

8.3%

0

200

400

600

800

1000

1200

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

Dividends (CF based) Special Dividend yield Linear (yield)

Dividend Policy Supports Strong Dividend Yield

38

Dividends Paid and Dividend Yield 2005-2014

Dividend Policy of up to 70% of reported net income generated average yield of 5.2% in the last decade

Yield trend line

* 2010 & 2014 special dividend: $500M

Page 39: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

ICL Segments, Business Environment, Additional Strategic Milestones

Page 40: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Agriculture

Page 41: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Growth Factors - Fertilizers and Food Products

41

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

Page 42: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

World Grains Production & Consumption

42

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

0.167249298

0.197981098

0.217274389

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

Bill

ion

To

nn

e

Consumption Production Stock to Use

Sources: USDA, (Update August 2015)

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$0

$5

$10

$15

$20

$25

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

Corn Wheat

Soybean Rice

World Grain Price Futures (CBOT)

43 Source: USDA, CBOT. Prices as of August 14, 2015

$11.82

$5.07

$3.64

$9.25

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44

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 August 13, 2015

FOB NOLA granular KCl

200

250

300

350

400

450

500

550

600

650

0

100

200

300

400

500

600

700

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45

Fertilizers are Affordable Source: CBOT, Fertilizer Week & ICL

*GPI = Grain Price Index formula: [(wheat price*7) + (maize price*8) + (rice price*4.5) + (soybean price*2.5)] /22]

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5Index of Fertilizer Price Ratio to GPI Base 2002 MOP/GPI

DAP/GPI

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46

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

1999 2006 2013 2014 China India Brazil RoW 2020 2025

80*

72*

53

62

Potash Demand Growth Estimates Source: CRU

Region 1999-2014

CAGR

2014-2020

Growth (tonnes)

2014-2020

CAGR

China 7% 1.3 1.5%

India 3% 2.2 7%

Brazil 6% 2.7 4%

USA 1% (0.4) 1%-

SE Asia 6% 2.1 4.4%

RoW 0% 2 2%

Total 3% 10 2.5%

After 2020 annual growth rate returns to 2%, and reaches 18M tonnes

growth from 2014 to 2025

Million tonnes KCl

Source: CRU, ICL estimates

*FertEcon estimations for 2020 & 2025: 75M tonnes & 81.5M tonnes, respectively

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47

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

Potash Market is Expected to Remain Balanced Source: CRU, DSW

68

79

88

Million tonnes 2014 2020 2025

Demand 62 72 80

Operating Capacity 68 79 88

Gap 6 7 8

Utilization rate 91% 91% 91%

* Greenfields capacity is multiplied by realization factor that takes into account the probability of realization, based on its category – Firm (80%), Probable (60%), Speculative (30%), ICL (100%). Not including BHP

Probable Brownfields

Firm Greenfields

Probable Greenfields

Speculative Greenfields

ICL growth

Firm Brownfields

Supply (Million tonnes KCl)

ICL’s growth: 2.8 million tonnes

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48

Agriculture

ICL Dead Sea

ICL Rotem

ICL Turkey

5,855 Employees Worldwide

ICL Haifa

ICL UK

ICL Iberia

ICL Germany

ICL The Netherlands

Fuentes

Nutrisi Everris

A Global Manufacturer of Products that Fulfills Essential Needs in the Agriculture Market

Potash Fertilizers

Phosphate Fertilizers

Specialty Fertilizers

52% 26%

22%

ICLF 2014 Sales by Lines of Business ($3,400M** )

Of ICL’s Rev ($6,100 M)

56%

Americas* - 22%

Asia* - 27%

EMEA* - 51%

*Of 2014 sales **including inter-segment sales

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Strategic Geographic Advantage Clear Service Advantage to Developed and 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

Source: ICL estimates, Netpas

China

India

IL

Europe

Brazil

US

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

• ICL has Shorter and Lower Cost Shipping Routes to Emerging Markets

49 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

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50

BPC 17.1%

ICL 15.0%

APC 12.5%

K & S 2.1%

Uralkali 31.2%

BPC 26.1%

Uralkali 19.2%

K+S 12.4%

ICL 9.1%

SQM 5.7%

Uralkali 32.5%

BPC 22.5%

ICL 16.3%

APC 7.1%

K+S 2.6%

SQM 1.4%

Other 1.3%

ICL’s Market Share in Potash in the Faster Growing Markets (2014)

Sources: BOABC, SIACESP, Company estimates

India Brazil China

Total import: 4.3 Mt Total import: 9.1 Mt Total import: 8.0 Mt

Canpotex 22.5%

Canpotex 27.5%

Canpotex 27.5%

Demand CAGR 2014-2020: 7% Demand CAGR 2014-2020: 1.5% Demand CAGR 2014-2020: 4%

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51

1

3

4

5

2

ICL Dead Sea – Raw Material Extraction

Pumping and

evaporation process

1

2

3

4

5

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Phosphate Line of Business

ICL Rotem

ICL Germany

ICL Turkey

ICL The Netherlands

• Employees No. : 1,482 FTE’s

• 2014 production: Phosphate Rock : 3,375 K Tons, Fertilizers: 1,591 K Tons, Acid (P2O5): 475 K Tons

• Successful cost reduction plan implementation at ICL Rotem –labor down by 10%, while P2O5 production up by 15%

• Strategic alliance with Yunnan Yuntianhua signed by the end of 2014 will almost double ICL’s global phosphate business and improve our Phosphate competitive position

• World scale phosphate rock mine with Fully vertically integrated phosphate business and downstream operations

52

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53

The Phosphate Market and ICL’s Position

43.0

46.4

- 0.2 0.2 0.4

1.7

1.2

2014consumption

USA China Brazil India RoW 2019consumption

Million tonnes P2O5

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 in future

CAGR 2014-2019: 1.5%

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54

What are Specialty Fertilizers?

Concentrated fertilizers with high efficiency used to:

Enhance yields Improve crop quality Save water Protect the environment

Main benefits: Integrate fertilizers with drip irrigation or

foliar Control consumption in open fields,

nurseries and lawns Optimize mix of major and minor

elements and trace elements Optimize plant performance

Usually tailored to specific needs of end-users

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Specialties

Light

Specialties

Commodities

• Added value

• Higher prices

• Smaller volumes

• Selective distribution

Specialty Fertilizers vs. Commodities

CRF (Controlled Release Fertilizers)

WSNPK (Water Soluble Fertilizers)

NOP (Potassium Nitrate)

CN (Calcium Nitrate)

Soluble (MAP/MKP)

“Special NPK”

55

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Overview ICL Specialty Fertilizers 2014: Sectors

Turf & Amenity Sportsfields, Golf and Landscape.

Specialty Agriculture Specialty Inputs for food crops

Ornamental Horticulture (OH) Container Nursery & Greenhouse

60%

21%

82

Sales by Market

60%

Others – Trading / Chemicals

60%

21%

8.5%

10.5%

56

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Our Advantages

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

57

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Grow Our Core Business

Spain Phoenix

Africa /Ethiopia Danakhil project

UK Polysulphate

Africa /Ethiopia Potash for Growth

India Potash for life

China YTH

China YTH

Organic Growth

External Growth

SF Worldwide product development, crops and geographic

expansion

SF Worldwide Growth & innovation through M&A activity

Bulk Blend

Potash Business Line

Phosphate& Fertilizers Business Line

Specialty Fertilizers Business Line

58

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Leverage Growth Opportunities in Potash

Canada, 36%

Russia 16%

Belarus 15%

China, 10%

ICL, 8%

Germany 6%

Other, 4%

Jordan 3%

Chile 3%

ICL’s Market Share, 2014 (Total Sales: 5.1 M Tons)

ICL will capture 9%-16% of Market growth (0.3% - 1.8% Market share growth).

2014 to 2025 Market growth: 18Mt ICL’s Projected growth (vs. 2014) : 1.6-2.8 M

Tonnes/Year to ~8 M tonnes

62 79 80

0

50

2014 2020 2025

Demand (KT)

Annual Growth rate: 2.9%

Source: CRU

Million Tonnes ICL Growth 2015-2025

1.3 ICL Iberia: Phoenix I-IV

0.1- 0.5 ICL Dead Sea

0- (0.8) ICL UK

1.0 ICL Africa

2.8-1.6 Total

59

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60

ICL Iberia – Consolidation and Expansion

ICL Iberia operating capacity development - 2015-2027 (K tonnes)

• Phoenix I+ II (2017): capacity expansion of Suria to 1,080K tonnes, closure of Cabanasas mine, expansion of granular capacity to 1,030K tonnes.

• Phoenix III (2019): new crystallization plant aimed to expand Suria’s Center capacity by extra 200K tonnes of KCl and 500K tonnes of NaCl

• Phoenix IV (gradual, until 2024): a Brownfield project targeted to extend Suria’s Center production capacity by additional 1M tonnes of KCl

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

~1,000

~2,300

• Agreement with Akzonobel to produce and market 1.5M tonnes of vacuum Salt and 50K tonnes of white potash annually

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61

Danakhil Potash Project - Ethiopia

Ethiopia

• Our gate to Africa

Acquisition of Allana will enable ICL to accelerate the development of Allana’s concession to mine potash in Ethiopia

Allana estimates that its Danakhil project could yield up to one million tonnes of potash production per year for 25 years

Over the past year ICL has accelerated its market development efforts in Africa by sponsoring the “potash for growth” program

ICL acquired full ownership of Allana potash (remaining 84%) for C$ 0.5 per share , C$ 137 million in total

Ethiopia

Location: Afar region, 800 km north of Addis Ababa, 600 km west of nearest port of Djibouti (export destination port); arid desert

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ICL to Establish Bulk Blending Facilities Across Ethiopia to Support Demand Growth

Bulk Blending - fertilizer plant designed to blend several nutrients. The final formula is determined according to the crop needs and availability of nutrient in the soil

Several locations has been investigated

First Bulk Blend was already established in Tulu Bolo by the Ethiopian Government

Djibouti Port

Allana Potash

Oromia

Amhara

SNNP

Tigray Mekele

Nekemte

Tulu Bolo

Worabe

Bahar Dar

• Alternatives examined by ICL • Sites where the Ethiopian Government established or intend to

establish BB facilities without any private business partner

Fertilizers are considered as a strategic commodity in Ethiopia

The plants are design to serve an area of about 200Km radius, use 150 k tonnes of potash annually through various number of formulas

The Ethiopian Gov. is defining the preferred cooperation model between the public and private sectors

62

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63

Polysulphate™: The Future of ICL UK

Readily available new natural fertilizer in the market containing four nutrients: Sulphur, Potassium, Magnesium and Calcium - a potential substitute to many fertilizers

0

100

200

300

400

500

600

700

2014 2015 2016 2017 2018 2019

Polysulphate TM production plan K Tonnes

50%

14% K

S

36% Mg+Ca

From Mine to Market, existing infrastructure, low production cost, high profit margins

Production target for 2019 – 1 million tonnes. Promising long term potential for up to 3 million tonnes

Reserves of more than 1 billion tonnes in the ICL UK potash mine

Already in the market, 50 k tonnes were sold in 2014. 2015 target: 150 k tonnes

With an investment of £ 40 million, infrastructure will support production of 600 K tonnes. Additional investment of £ 40 million for granulation facility

Environmentally friendly, used in its natural form. No chemical processing or waste products

Suitable for chloride sensitive crops. Geographical expansion – from Europe to Brazil, US and China

Approved for organic agriculture in the UK, EU and in the midst of an approval in the US

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780.00

Specialty FertilizersKT p.a.

64

Strategic Alliance with Yunnan Yuntianhua– a Step Change to ICL’s Global Phosphate Business

Kunming

• 50% in a fully vertically integrated phosphate business including a world scale phosphate rock mine and integrated downstream operations.

• A 15% stake in Yunnan Yuntianhua Co. Ltd., China’s leading producer of phosphate rock and fertilizers.

3.50

0

1

2

3

4

5

6

7

Phosphate Rock, MT p.a.

2.5

3.5

6.0

30 years of Reserves

8 Years of Reserves

0250500750

1,0001,2501,5001,7502,0002,2502,5002,7503,000

Fertilizers KT p.a.

850

1,900

2,700

600.00

0250500750

1,0001,2501,5001,7502,0002,2502,5002,7503,000

Phosphoric AcidKT p.a.

700

600

1,300

780

115

0250500750

1,0001,2501,5001,7502,0002,2502,5002,7503,000

Specialty PhosphoricAcid

KT p.a.

290 60

350 895

ICL Standalone YTH Add. capacity

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65

Improving Our Cost Position in Potash

ICL Iberia ICL UK

Co

st

2/3 of ICL’s effective capacity

Potash volume

*Source: CRU, McKinsey & Company, ICL estimates. Excluding Royalties

ICL Dead Sea ICL Africa

Future project

Potash Cash Cost Curve – FOB $ / Tonne * - Abstract Model

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Improving Our Cost Position in Phosphate

66

Site

co

sts

Yunnan

Source: CRU, November 2014.

3 Open Pit Mines Restored Mine

Site Capacity

The strategic alliance in China will secure ICL's access to competitive phosphate rock for several decades

Cost reduction in ICL’s existing production base Establishing new low cost

phosphate base

Phosphate rock cost curve (abstract model):

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67

ICL Specialty Fertilizers Strategy to Deliver High Growth Rates

4-6 % CAGR

1-2 % Market Growth

Ornamental Horticulture

6-8 % CAGR

0 % Market Growth Professional Turf

>10% CAGR

5-6 % Market Growth Specialty

Agriculture

1-3 % CAGR

1 % Market Growth

Chemicals

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68

Growing Our Specialty Agriculture Business

Spec. Agriculture Controlled Release Fertilizer in Emerging Markets

Product Development and more trial data

Product Development & Technology

New production facilities

More feet on the ground

Focus on tropical crops

Investment in innovation

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Enhance Innovation & Product Development

Next generation coating technology Unique fertigation and foliar solutions Enhanced nutrient & water efficiency technologies

INNOVATION

PRODUCT DEVELOPMENT & TECHNOLOGY

Proof of Performance with Authorities and Customers Open Innovation / Scouting for new ideas

1

REGULATORY & SUPPORT

2

3

69

Speed up “from project to market”

~ $ 15M investment/yr. in R&D and Product

Development

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70

Produt Development Trials US$/acre Current practice CRF

Fertilizer volume (lbs N/acre) 60 40

Fertilizer costs 103 103

Application costs 43 20

Yield value 1,188 1,284

Net value1 1,042 1,160

(2 less)

(1/3 less)

(+11%)

Sugar production in Florida

+ 11 % income

2 fewer applications

33% less N

Adoption time 2-5 years

Has to taste fertilizer to check quality!

Proof of Performance and Market Education

Proof of performance

Market education: new technologies adoption

• Field Biology

• Product Evaluation

• Product development

• Trials

• Grower/Food industry

• Projects

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Geographical Expansion

71

Production moves closer to Emerging Markets

High logistic synergies

Improve Yield & Quality

Innovative technology

Market education

Worldwide Agronomist team

Focus on Plants needs

Knowledge and experience in the market

Strategic alliance with YTH

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Engineered Materials

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Vast Global Footprint

73

2500 Employees worldwide

Of ICL sales in 2014

22% EMEA

Americas

Asia

Plant

Sales

R&D

Sales by region $1.3B sales in 2014

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From Assets to Market

74

Bromine

Phosphorus

Mineral Salts

Magnesium

Chlorine

Flame Retardants

Energy and Intermediates

Microbial Solutions

Mineral Applications

Chemistries Key Markets

Back Integration to Customer Solutions

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Global Trends Supporting Our Business

75

Population Regulation & Environmental Standard of living

FURNITURE & TEXTILE TRANSPORTATION

WATER TREATMENT

CONSTRUCTION

INTERMEDIATES FOR FOOD,

PHARMA, AGRO OIL & GAS

POWER PLANTS

ELECTRONICS

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Global Cost Leader in Bromine

76

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

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A Global Leader in a Concentrated Market

77

ICL holds the largest capacity Global Bromine Capacity, by producer

280 280

120 120

95 91

92 88

93 83

64 69

2014 2019

Albemarle (Dead Sea)

ICL (Dead Sea)

Other

Albemarle (US)

Chemtura (US)

China

Bromine demand by industry - 2014

Market utilization rates: 70-80%

Flame retardants

41%

Brominated organic

intermediates 21%

Clear brine fluids 18%

Industrial 8%

Biocides 6%

Fumigants 3%

Mercury control

3%

744 731

Source: ICL estimates, MarketsandMarkets

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ICL Industrial Products Market Leadership

78

Number 1 Market Positions

• #1 in Bromine capacity

• #1 in Bromine Iso-tank fleet

• #1 in Brominated biocides

• #1 in Phosphorus FRs

• #1 in Clear Brine Fluids

• #1 Self-extinguishing Hydraulic fluids

Leading Market Positions

• Flame Retardants

• Specialty Magnesia

• Magnesium Chloride

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Flame Retardants Serve Attractive Markets and are Impacted by Regulatory Changes

79

Construction Market growth rate: 3-4%

Furniture & Textile Market growth rate: 4-5%

Transportation Market growth rate: 4-5%

Electronics Market growth rate: 2-3%

• Circuit boards, wiring, Housings • Demand stable to growing slightly

• Connectors, headliners, seat Components

• Demand growth in China and India

• Upholstery, industrial & military Fabrics, foam

• New generation products drive demand

• Insulation, paints & coatings, panelling • Growth driven by energy efficient

construction, introduction and enhancement of insulation standards

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• Clear brine fluids : off-shore • Growth in Africa and the Far East

• Power plant turbines, hydraulic fluids for aviation

• Growing markets in China, India and Russia

• Further expansion in the US • Future growth in China and EU

Multiple Applications for the Energy Markets

80

• Increasing demand for green energy and smart grid

• Patented complexing agents

Oil and Gas Market growth rate: 2-3%

Functional Fluids Market growth rate: 2-3%

Mercury Emission Control Market growth rate: 10-20%

Energy Storage – new market

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Strategy and Investment Highlights

81

Grow our core business: Organic growth Margin expansion Pricing Portfolio management

Cost reduction: Operational excellence Reduction of labor costs Divest non-core businesses

Advocacy: SAFR™ (Scientific

Assessment for Flame Retardants)

Flame retardants standards

Merquel® in China/EU

Grow the Bromine pie: In-house R&D Outside technical

collaborations Focus on customer unmet

needs to bring new products and solutions

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The Future of Flame Retardants

An ICL-IP tool to measure the sustainability of FR usage according to the specific application

Not recommended

Recommended

Acceptable

Hazard

Exposure

Scientific Assessment for Flame Retardants

SAFR™

82

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Grow Our Core Business

83

R&D Leadership

Environmental Leadership

• Next-generation Flame retardants: FR-122P, TexFRon, HF-10, SaFRon 6605, SOL-DP, FR-E0-16

• ZnBr Energy Storage formulations – commercial sales started

• New Biocides: Bronopol, Bromosol, Bactabrom

• ICL France new product: Scoralite DC

• Responsible Care®

• VECAP™ (Voluntary

Emissions Control Action Program)

• Greenhouse gas reduction

• 2015 launch of SAFR™

• Beta sites for Merquel ®mercury control in China and bromine battery technology in USA.

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ICL Performance Products: Overview

84

Of ICL Sales in 2014*

25% 40%

32%

28%

Non Core

3,300 Employees Worldwide

Advanced Additives

Food Specialties

Sales by Business unit $1.5B sales in 2014

Americas 40%

Asia/Pacific 15%

EMEA 45%

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ICL Performance Products: Advanced Additives Business

85

Engineered Materials

Leveraging ICL’s natural resources in a diverse portfolio of applications

Advanced Additives

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Advanced Additives – A Stable Portfolio With Broad Applications

86

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Advanced Additives – Main Strategic Goals

87

Geographic expansion

Expand through differentiation

Cost optimization:

lean & reliable

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Advanced Additives – Geographic Expansion

88

Strengthen core activities in food, agriculture

and engineered materials markets

Nearly 50% increase in purified phosphoric

acid volumes

Broaden product portfolio, achieve greater

competitiveness and utilize synergies

Fosbrasil is the biggest producer of phosphoric acid in Latin America

Benefits

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Advanced Additives – Geographic Expansion

89

A proven business model – convert commodities into specialties

Combining both companies‘ strengths and expertise

Expand end market reach into China, SE Asia, and India

Sales of Commodity versus Specialty ratio from 90%/10% to 50%/50%

Revenue growth from $550M to $700M and EBITDA expansion from low teens to high teens within 5 years.

The strategic alliance with Yunnan Yuntianhua presents tremendous opportunity for ICL to become a market leader in phosphates in China & Southeast Asia.

Benefits

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Advanced Additives – Expand Through Differentiation

90

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

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Advanced Additives – Lean & Reliable: Fitting to Customer Needs

91

ICL is the only global manufacturer

High barriers to entry A solid customer base Platform with potential

for expansion with the JV with Yunnan Yuntianhua

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

Page 92: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Food

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ICL Performance Products: Food Specialties Business

Food

Leveraging our proprietary technology in the rapidly developing market space for creative food with unique ingredient systems

Food Specialties

Page 94: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

94

Food Specialties – What We Do

Linking Markets with Consumer Trends

Sugar Fat

Sodium

Proteins Fibers

Minerals Antioxidants

Healthy Reduction versus Healthy Enhancements

Page 95: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Food Specialties- Increased Global Demand for Proteins

95

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

Page 96: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

96

Food Specialties – Main Strategic Goals

Bakery & Cereals

Dairy

Meat, Poultry, Seafood

Beverage

Starches & Fibres

Soy & Pea Protein

Phosphates

Dairy Protein

Food Specialties 1. Add synergistic technology platforms

2. Geographic expansion

3. Transforming ICL Food Specialties into

a global formulator of texture &

stability solutions:

Phosphates

Sourced ingredients

Integrated formulation of

solutions

Customers

Sale of solutions

Dairy proteins

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Food Specialties – Add Technology Platforms: Whey Proteins in Europe

97

Acquisition of Prolactal/Rovita in Q1/2015 is a big step in implementing the strategy

2014 annual revenue of $110 M; market growth of approximately 10% annually

Proprietary technology can be expanded into other regions

Dair

y

Meat/

Po

ult

ry

/ S

eafo

od

Bakery

Bevera

ge

Phosphate Salts

Whey Proteins

Vegetable Proteins

Spices

Page 98: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Efficiency and Operational Excellence

Page 99: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Efficiency Strategy Projects Overview

99

Procurement

Energy

CAPEX

Pricing

R&D

ACE – Ambition Creates Excellence

Manufacturing excellence

Improved cost position/ cost per ton

Increased production/process optimization/yield increase

Operational Excellence

Procurement

Finance & tax

IT

HR

Legal & compliance

Shared Services

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ACE Drives Functional Excellence in 5 Key Processes

Pricing

ACE streams

Energy efficiency

Procurement

CAPEX (investment)

R&D

AC

E

Current Status

Establishment of the commercial excellence

program.

Establishment of a new global function: CIO

Establishment of a new global function: CTO

Establishment of a new global function: CPO

Ongoing efforts

Volume Activity

~ $6000 million of Revenues

Annual spending: ~ $400 million

Annual spending: ~ $4000 million

Annual CAPEX spending: ~ $800 million

~ $6000 million of Revenues

Asset productivity

Revenue increase

Cost reduction

ICL’s core value creation drivers

100

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Procurement Savings: Three Potential Levers

What did we do? • One global ICL

approach – regions & management level

• Coordination alignment between global and regional

• Excellent global team work

• Exploration of supply options over the entire value chain

• One global contract or no contract

Result: • Annual saving: $2.1 M

(25%) • Global contract for the

US, Israel & Europe

AC

E

Supplier management

Process management

Demand management

Volume consolidation

Supplier partnerships

Negotiation

Transportation agreements

Make-or-buy opportunities

Simplify specifications to fulfill (not exceed) requirements

Find "replacements" and alternative technologies

Manage service levels/demand

Reduce waste

Success story- Phenol contract

101

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As project progresses, budget is committed, ability to change project decisions/add value decreases:

100%

Low

High

Project life cycle

0%

CAPEX Value Engineering

A systematic and structured approach for improving projects, products, and processes

Used to analyze and improve manufacturing products and processes, design and construction projects

Helps achieve an optimum balance between function, performance, quality, safety and cost

The proper balance results in the maximum value for the project

AC

E

Ability to improve value

Commitment of funds

CAPEX value engineering:

Potential cash flow contribution: ~$100M

102

Page 103: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Operational excellence

Key Value Drivers Project

Improve bottom-line performance and ICL’s cost position through promoting manufacturing excellence

Further Tools

■ Efficiency proposals

■ Improvement teams

■ 6 sigma teams

■ Quality cost model

Lean Manufacturing

■ New, lean manufacturing process

■ Accompanied by consultants

Operational Excellence – Scope O

pera

tio

nal E

xcell

en

ce

Improve the competitiveness of our product portfolio in the global markets

Cost structure improvement/cost per tonne reduction

Increased production/process optimization/yield increase

103

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Finance & Tax

Procurement

IT

HR

Legal & Compliance

Europe:

• Number of countries: 18

• Number of employees: ~ 4,900 (39%)

• Number of companies: 86

Americas:

• Number of countries: 6

• Number of employees: ~ 1,500 (12%)

• Number of companies: 19

Israel:

• Number of companies: 9

• Number of employees: ~5,000 (40%)

China

• Number of employees: 614 (5%)

• Number of companies: 10

Shared Services Overview

Israel SHS

China SHS

Europe SHS Americas SHS

Israel SHS

SH

S

Shared services center mission: A center enabler of ICL’S Next Step Forward strategy, serving ICL business in a quality, cost effective manner, providing timely, valuable and consistent service.

104 * All data is as of 2014

Page 105: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Shared Services Contribution

Reduce and optimize

labor costs

Increase and optimize

productivity

Meet and exceed

service quality levels

Drive centralization as

part of "One ICL"

Vision

Full time employees

50

91

158 184 188

2015 2016 2017 2018 2019

Accumulated employee reduction

Accumulated annual savings

Accumulated Savings ($M)

8

14

24

28 28

2015 2016 2017 2018 2019

SH

S

105

Page 106: Investor Presentation · Investor Presentation August 2015 . Safe Harbor All statements in this communication, other than those relating to historical facts, are ^forward-looking

Thank you