#1AICL Where needs take us Strategic Alliance with Yunnan Yuntianhua December 2014#2AICL Safe Harbor All statements in this presentation, other than those relating to historical facts (and particularly those about our anticipated revenues, reserves and production rates and margin improvements and cost savings due to the YTH transaction), 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: our ability to obtain all required approvals for completion of the YTH translation and our ability to consummate the transaction; our ability to comply with regulatory requirements in China; general market, political or economic conditions in China and other Asian countries, as well as other countries in which we operate (which could impact the anticipated demand for phosphate and phosphate-chain products in future years); 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; loss or impairment of business licenses or mining permits or concessions; natural disasters; regulatory restrictions affecting our ability to export products; labor disputes, slowdowns and strikes; currency rate fluctuations; 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 reserve estimates; failure to integrate or realize expected benefits from the acquisition and joint venture; volatility or crises in the financial markets;;; litigation, arbitration and regulatory proceedings; and war or acts of terror. In addition, more detailed information about other factors that may affect our performance may be found in "Risk Factors" in our registration statement on Form F-1 filed with the U.S. Securities and Exchange Commission on September 22, 2014. Forward-looking statements and projections represent our views and are given only as of the date of this presentation 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. This presentation includes certain non-GAAP financial measures as defined by SEC rules. We have provided a reconciliation of those measures to the most directly comparable IFRS measures, which is available in the Appendix. Where needs take us 2#3AICL Strategic alliance with Yunnan Yuntianhua- a step change to double ICL's global phosphate business ICL will invest up to $500 million for: • A world-scale phosphate mine and a major global integrated phosphate operations in China, through a 50% stake of a newly formed JV • 15% ownership of Yunnan Yuntianhua Co. Ltd. (SSE: 600096), China's leading producer of phosphate rock and fertilizers Primary shares issued to ICL based on YTH's market valuation with a 10% discount Expanding ICL's Specialty Phosphate Platform into the Fast Growing Chinese and Asian Markets. The Transaction Almost Doubles ICL's Global Phosphate Market Share Transforming the JV Operations from Commodity Focus to Specialty Focus Securing Access to Competitive Cost Phosphate Rock for Several Decades Significant Expansion and Synergies Potential Where needs take us 3#4AICL Transaction Overview Acquired Assets 1 50% JV in a fully vertically integrated phosphate business including a world scale phosphate rock mine and downstream operations A 15% stake in Yunnan Yuntianhua Co. Ltd., China's leading producer of phosphate rock and fertilizers Funding Cash on balance sheet Governance Closing ICL 2 15.0% Public Shareholders 39.3% YTH Group 45.7% • ■ ICL will appoint: The JV's CEO, COO and VP Sales Two of the JV's Board Members, including its Chairman, thus obtaining majority vote In addition, ICL will appoint One VP at Yunnan Yuntianhua, as well as a VP at two of its subsidiaries Two of Yunnan Yuntianhua Board Members ICL to provide expertise, know-how and human resources for a newly created "Phosphate Committee” designed to optimize operations, commercial activities and financial structure ICL will merge its other phosphate businesses in China into the JV, which will be transformed into a fully operating business unit, including product development, production and sales & marketing The transaction is expected to close in Q1 2016, subject to closing conditions and regulatory approvals from the relevant Chinese authorities Final valuation will be confirmed during the approval process in China Yunnan Yuntianhua 1 50.0% 50.0% JV Haiko Phosphate Mine Assets 100.0% • World scale phosphate rock mine with ~100mT reserves Capacity of 2.5mT p.a. • Integrated Phosphate Operations (by Production Capacity) . Fertilizers - 850kT p.a. . Phosphoric acid - 700kT p.a. Specialty fertilizers - 115kT p.a. • Specialty phosphates - 65kT p.a. • Purified phosphoric acid - 60kT p.a. Where needs take us 4#5AICL Financial Highlights Revenues Margin expansion JV sales to increase from ~$550M to ~$700M • Commodity / Specialty sales volumes ratio to develop from 90%/10% to 50%/50% Expand EBITDA margins from low teens to high teens within 5 years EV/EBITDA ⚫ JV valuation reflects approximately 7.4x EV/EBITDA multiple (year 2 estimates) EPS accretion Synergies • Cash EPS accretive from the first full year of operations At least $30M per year, achieved within 5 years, with a potential to double this amount CAPEX Where needs take us ~$170M spread over 4 years starting from the closing 5#6AICL Yunnan Yuntianhua at a Glance Company Snapshot China's leading producer of phosphate rock and fertilizers with approximately $9 billion in annual revenues (1) China's second largest chemicals manufacturer Operates across 5 segments - Phosphate Fertilizer, Phosphate Rock Mining and Dressing, Nitrogen Fertilizer, Engineered Materials and Trade and Commerce Majority of revenues and gross profit are derived from the phosphate value chain (including phosphate rock, phosphate fertilizer and related trading) • Majority of fertilizer operations and rock located in Yunnan Province close to Kunming province capital and largest city - • Yunnan Yuntianhua's overall proven phosphate reserves estimated at more than 600 million tons of phosphate rock Extensive distribution networks through own subsidiaries and franchised stores/ distributors Location of Production Facilities Business Mix Revenues(1) Engineered Nitrogen Materials Fertilizer Trade (Others) 11% 2% 5% Phosphate Fertilizer, Phosphate Trade & Logistics Revenue RMB55.9bn $9.2bn Rock 43% (Grain) 23% Trade (Phosphate Fertilizer) 16% Gross Profit (1,2) The phosphate value chain accounts for ~60% of total revenue Kunming Beihai port Nitrogen Trade Fertilizer (Others) 11% 3% Trade (Grain) 11% Trade (Phosphate Fertilizer) 4% Gross Profit RMB7.2bn $1.2bn Kunming "Beihai port ☐ ப Multiple sites (<100km apart) in Yunnan Province near Kunming Distance to closest port (Beihai) is ~1,000km Own logistics (train) network The phosphate value chain accounts for ~75% of total gross profit 1. Yunnan Yuntianhua data for 2013, net of intersegment sales, based on a 6.1RMB/$ exchange rate. 2. Excluding Engineering Products segment - gross profit of RMB (24.6)mn, representing <1% of total gross profit. Where needs take us Phosphate Fertilizer, Phosphate Rock 71% 6#7AICL Extensive Distribution Network Fertilizer Distribution Network • Comprehensive distribution network comprising both own direct-sale stores (>45 stores) and franchised stores / distributors (~10,000) ⚫ #1 market share in China in DAP in the last 5 years • Strong positions in the Indian market Established base for future expansion in nearby regions - South China and Southeast Asia Opportunity to leverage Trans- Asian High-Speed railway project upon competition to reach all of Southeast Asia Existing distribution network can be used to further increase penetration of the full scope of ICL's products in China Key Distribution Subsidiaries Yuntianhua International Agricultural Co National distribution of phosphate, compound and nitrogen fertilizers outside of Southwest China regions Tianmeng Agricultural Chain Co., Ltd Distribution of nitrogen fertilizers in Southwest China Direct-sale/Franchised Stores / Distributors > 35 direct-sale stores > 2,000 franchised stores/ distributors > 10 direct-sale stores > 7,800 franchised stores / distributors Northwest North China Yunnan Southeast Asia Trans-Asian High-Speed Railway & Yunnan- Burma Railway Distribution Volumes > 7mm tonnes per year > 1.5mm tonnes per year Northeast Chifeng South China Where needs take us#8AICL Strategic Rationale Implement Proven Business Model - Converting Commodity into Specialty Utilizing Expertise between Both Companies AICL Where needs take us Expand ICL's Global Specialty Phosphates Business through Competitive Backward Integration Where needs take us Jap Expanding End Market Reach to Fulfil Essential Needs in the Fast Growing Chinese and Asian Markets 8#9AICL Financially Solid Transaction with Clear Benefits Secure Cost Competitive Resources Competitive Position in Attractive Markets Expansion and Synergies Potential Support for ICL's other Business Segments ICL will gain access to a low-cost phosphate rock operation with reserves that are among the largest globally, as well as low-cost phosphoric acid • 100 million tonnes of phosphate rock - sufficient supply for decades to come ICL will almost double its global phosphate market share: • A new major player in China's growing specialty market for fertilizers, food ingredients and engineered materials • Will enable ICL to build world scale, diverse and competitive specialty operations in additional target markets: SE Asia and India Upgrading and expanding purified phosphoric acid production facilities Expanding downstream operations by utilizing ICL's know-how Offering higher value added products The strategic alliance between ICL and YTH to support ICL's Food, Engineered Material and Specialty Fertilizers units • The strategic alliance can support ICL's potash business in China in the long term Where needs take us 6#10AICL Phosphate Rock Site Costs - China among the World's Lowest The deal will secure ICL's access to competitive cost phosphate rock for several decades Phosphate rock site costs 2013 Site costs Establishing New Low Cost Phosphate Rock Base Existing ICL Production Base 3 Open Pit Mines Restored Mine Source: CRU, November 2014. Where needs take us Yunnan Site Capacity Cost reduction initiatives 10#11AICL China is one of the Key Drivers of Global Phosphate Market • Attractive fast-growing fertilizer market underpinned by growing population, limited arable land and dietary shifts 180 160 ⚫ Chinese's food market is 140 undergoing major changes in light of growing consumption of processed 120 100 foods 80 • Industrial development and urbanization creates 60 opportunities for strong 40 growth in engineered materials applications for 20 phosphates Source: CRU, November 2014. Where needs take us 0 Implied Phosphate rock demand by major country (million tonnes) 200 China: the driver of growth 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 USA Russia ■Morocco China 2005 2006 2007 2008 2009 2010 2011 ■ROW and India 2012 2013 2014 11#12AICL (mT p.a.) Significant Capability Expansion for ICL Phosphate Rock ~8 Years of Reserves Fertilizers Phosphoric Acid KT p.a. 2,700 KT p.a. 1,300 30 years of Reserves 850.0 700 6 1,900.0 1,900.0 600 600 2.5 Specialty Fertilizers KT p.a. Purified Phosphoric Acid 895 115 KT p.a. 350 60 3.5 3.5 780 780 290 290 Note: Approximate figures. ICL Standalone Additional Capacity 1. Reflects 100% of the phosphate rock mine assets and the integrated phosphate operations capacity. Where needs take us (1) 12#13AICL A Clear Roadmap to Deliver Value - Well Identified and Executable Synergies Upgrading production facilities to improve processes and expand downstream operations by utilizing ICL's know-how, therewith offer higher margin products ☐ upgrading and expanding purified phosphoric acid production facilities Improving rock and green phosphoric acid production processes New products: ☐ Production Expansion Opex ■ Specialty water soluble MAP ◉ Specialty phosphate salts for food and engineered materials Formulations in the specialty non-agricultural market Expanding bulk fertilizers production (GMAP, GTSP) via debottlenecking and improved utilization Flexibility in supply chain to support better plant utilization Freight savings on shipments to SE Asia and India via rail lines improvements Consolidated procurement Cost reduction implementation Capex Savings on equipment capex Where needs take us 13#14Thank you!