Essential Minerals for LifeNomura Global Chemical Industry Leaders Conference

Rome, March 22, 2012

Disclaimer

The information delivered or to be delivered to you does not constitute an offer or a recommendation to do anyThe information delivered or to be delivered to you does not constitute an offer or a recommendation to do anytransaction in Israel Chemicals Ltd. (ICL) securities. Although our shares may be bought and sold on the Tel AvivStock Exchange (TASE) at any trading time, they do not trade out of Israel - neither in the United States, nor EU ,norelsewhere and this presentation does not constitute an offer or investment advice to any US or other person at thistime. If we ever do so, our offer will only be made by a prospectus or a registration statement conforming with allrequirements of U.S., EU or any other applicable law.

Certain statements in this presentation and other oral and written statements made by ICL from time to time, areforward-looking statements, including, but not limited to, those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-looking statementsare subject to risks and uncertainties that may cause actual results to differ materially from those contained in thestatements, including, among others, the following: (a) Crisis in financial markets;(b) War or terror operations;(c)I t l f f tili ( d t i t li i d th ) (d) S bj ti t l i l ti dImpacts on sales of fertilizers (product prices, government policies and weather); (d) Subjection to legislative andlicensing restrictions;(e) Exposure relating to environmental protection and safety;(f) Third party liability and productliability; (g) Volatility in the markets that affects the demand for some of the products; (h) Concessions and permits; (i)Natural disasters; (j) Water level in Pond 150 in Dead Sea;(k) Dependence on seaports, transportation and loading inIsrael. We caution you that the above list of important factors is not comprehensive. We refer you to filings that wehave made and shall make with the TASE. They may discuss new or different factors that may cause actual results todiff t i ll f thi i f tidiffer materially from this information.

All information included in this document speaks only as of the date on which they are made, and we do not undertakeany obligation to update such information afterwards.

Some of the market and industry information is based on independent industry publications or other publicly availabley p y p p yinformation, while other information is based on internal studies. Although we believe that these independent sourcesand our internal data are reliable as of their respective dates, the information contained in them has not beenindependently verified and we can not assure you as to the accuracy or completeness of this information.

Readers and viewers are cautioned to consider these risks and uncertainties and to not place undue reliance on suchinformation.

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o at o

Company Basics

From Basic Minerals to Downstream Products and Performance Solutions

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ICL - A Global Player

A global manufacturer of fertilizers & specialty chemicalsHeadquartered in Israel worldwide operations

ICL A Global Player

Headquartered in Israel, worldwide operations

2010 revenues: US$ 5.7 billion; Net Income: US$ 1.025 billion 9M 2011 revenues: US$ 5.4 billion; Net Income: US$ 1.142 billion

Close to 50% of revenues derived from production activities outside of Israel; ~94% of sales occur outside of Israel

11,965 employees* as of September, 2011 (~5,000 in Israel)

Trading: Tel-Aviv Stock Exchange (TASE: ICL) Potash Corp (POT)

14%

Market cap**:~$14 billion Dividend yield: 2011: 5 5%; Decade average: 4 8%

Israel Corp (ILCO)

Public34%Dividend yield: 2011: 5.5%; Decade average: 4.8% (ILCO)

52%

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* Including new acquisitions** As of March 12, 2012

ICL Shareholders

Integrated Portfolio Across Segments –From Basic Materials to Downstream Products

Potash

Potash, Phosphate Rock, Phosphoric Acid, Phosphate Fertilizers, Compound Fertilizers, Specialty Fertilizers, Feed Additives, Salts

ICL Potash34%

Elemental Bromine, Bromine & OrganophosphorusFlame Retardants, Various Bromine Compounds, Chlorine based Biocides Magnesia Prod cts

Potash 34%

Other4%

ICLIndustrial Products

22%

Fertilizers & Phosphates

17%

Chlorine-based Biocides, Magnesia Products

Specialty Phosphates: Technical, Food Grade & Electronic Grade Phosphoric Acid, Phosphate Salts,

Fertilizers &Phosphates

ICLPerformance

Products23%

4%

Electronic Grade Phosphoric Acid, Phosphate Salts, Food Additives, Hygiene Products, Wildfire Safety Products, Water Treatment Chemicals and Services

p17%

23%

Pure Magnesium, Magnesium Alloys; Water Desalination Solutions (via IDE, 50% JV)

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Note: % based on 2010 sales

Access to Vast, Low Cost Natural Resources,

PotashPotashThe

Dead Sea Bromine

Polyhalite

Sea Bromine

Magnesium

S

Iberpotash (Spain) & CPL (England)

(Israel)

Salts

Phosphates

3 Peat MiningThe NegevDesert

3 Peat Mining Sites (England)

(Israel)

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Dead Sea Potash - Unique Low-cost Technologyand Open Air Storageand Open Air Storage

Dredging Operation

2 Production Lines

Evaporation Process

Open Air Storage CapacityCapacity

•Environmentally friendly pond evaporation system, saves the burning of about 10 million tons of coal or diesel oil each yeary

•Use of natural gas in Israel, as of mid 2010, reducesCO emissions to the atmosphere

2

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Agreement with the Israeli Government Ensures Future Potash De elopment & S stainabilit at the Dead SeaPotash Development & Sustainability at the Dead Sea

ICL will finance over 80% of the salt dredging costs. Dead Sea Works’ royalty rate will increase from 5% to 10% on ex-works (average) price

123456At th

Dead Sea Works royalty rate will increase from 5% to 10% on ex works (average) price of potash for annual volumes sold over 1.5 million tons.

Floating dredgers harvest

the salt

The suspension flows through a floating pipeto a drainage

The salt is drained. The solution is filtered and

The dry saltis loaded onto a conveyor to

transport

At the North

terminal,the salt is

The bargesreturn the salt

to the northern basin to a drainage

area near the dike.

filtered and returned to the

pond.

transportit to the

terminal.loaded onto

barges.

northern basin of the Dead

Sea.

TerminalZohar

Ein GediSalt transport

TerminalPond No.5

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Ein BokekZohar

Bromine: Lowest Cost, Virtually Unlimited Reserves y

0.05g/lSea Water

)China, India, Japan(

0.2g/lUnderground Wells)China(

2-6g/lBrine Wells)USA* and Russia(

Most Concentrated Source of Bromine 10 12g/lDead Sea Brine

)USA and Russia(

in the World10-12g/lDead Sea Brine

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* Arkansas – brine wells of Chemtura & Albemarle

Vertical Integration With High Utilization ofBy-Products & Waste Products

Raw MaterialsElemental

Source Major Intermediate & Finished ProductsPhosphorus ( Penta)

Sulfide

ThFertilizer

Grade

Food Grade Phosphoric Acid

PhosphateSalts

Phosphate

Phosphorus

Wildfire Extinguishers

Food Additives

Sulfide

The NegevDesert

GradePhosphoric

Acid

Phosphate Rock

SpecialGrade Acid

Food Hygiene

Alumina & Magnesia Based

Phosphate Fertilizers

Salt (NaCl)

Compound Fertilizers

Specialty

Potash

The Dead End Brine

Carnallite

Pure Magnesium

Magnesium

Specialty Fertilizers

Magnesium ChlorideSolution

Dead Sea

CrudeMagnesium

End Brine

Elemental

Chlorine

Magnesia MagnesiumAlloys

Salt (NaCl)

Potash Chlorine

BromineCompounds

MagnesiumChloride

Potash Mines in the UK & S i Sylvanite

Elemental Bromine

MagnesiaProducts (MgO)Polynalite

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Chlorine based Biocides& Spain y

Fertilizers Industrial Products Performance Products DSM Product Sold OPFRs & Others

Strong Global Presence & Logistical Advantagesg & g g

)Sales by Geography (1-9/11

Europe 36%North America 20%

Asia 27%Israel 5%

ROW 2%Mexico

South America 10%

Manufacturing plantLogistic centerSales officesHeadquarter

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Headquarter

Leading Player in Global IndustriesLeading Player in Global Industries

#1 in elemental bromine ~40% of global production capacity

#1 in organophosphorus flame retardants

#1 producer of pure phosphoric acid

#1 in specialty phosphates#1 in specialty phosphates

#1 in wildfire safety products

#1 d f PK f tili ( d t h & h h t f tili )#1 producer of PK fertilizers (compound potash & phosphate fertilizers)

#2 Europe and #6 Worldwide in potash supply

#2 Western world magnesium production, and...

Major player in specialty fertilizers & specialty chemical niche markets

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Continuous Historical Growth Trend

5 692

6,904$ millions

Continuous Historical Growth Trend

2 715 2 986 3,2584,103

4,5545,692

4,271

5,356

1 346 1 460

1,981 2,2712,715 2,986

2,3362,004

770 1,025 1,142354 561 536

743938

1,3461,007

1,460

92 103 251 422 374553

770 ,779199 203

354 561

2002 2003 2004 2005 2006 2007 2008 2009 2010 9M10 9M112002 2003 2004 2005 2006 2007 2008 2009 2010 9M10 9M11

Net Income Operating Income Sales

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*2002-2006 figures are based on Israeli GAAP, 2007-2011 are based on IFRS

Strong ReturnsStrong Returns

94.5%

49 7%*52.0%ROE

10 9% 8 1% 10 4% 10.5%22.4%

31.2% 23.2%31.4% 29.5%

38.0%49.7%*52.0%

32.5%*10.9% 8.1% 10.4%

5.5% 4.2% 5.5% 5.3% 9.6% 14.4% 12.9% 19.1% 19.4% 21.4%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

ROIC

* LTM (as of September 2011)

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ROE (Return on equity) = net income / shareholders' equity, average ROIC (Return on invested capital ) = (operating income ×(1-0.20)) / ((trade receivables + inventory – trade payables) + PP&E, net), average

2000-2006 figures are based on Israeli GAAP, 2007-2011 based on IFRS LTM (as of September 2011)

10 Years of High Dividend Yields10 Years of High Dividend Yields

Dividend policy:

Year Dividend Yield*

p yUp to 70% of net income in quarterly payments

2011 Dividend Payments

2001 4.0%

2002 4.8%

2003 4 5%

Q1: $195 million announced on May, 2011

Q2: $298 million announced on August, 20112003 4.5%

2004 4.5%

2005 3.6%

Q3: $300 million announced on November, 2011

2006 6.4%

2007 3.5%

2008 5.9%

2009 3.9%

2010 7 0%

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* Calculated according to market capitalization based on average share price adjusted for dividends

2010 7.0%

Company & Market UpdatesUpdates

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ICL Fertilizers

Meeting the Challenge of Growing Demand for Food

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ICL Fertilizers: A Variety of Commodity & Specialty Fertilizers

Potash

Fertilizers & Phospates

34%Potash

66%

$Segment Sales - 2010: $3,107 Million1-9/2011: $3,063 Million

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Based on 2010 external sales

Low Levels of World Grain Stocks & Stock-to-Use Ratio Signal a Need for More Crops & Fertilizers

Stocks of Grains and PulsesB l ill t i d i t i h & h t ( USDA M h 2012)

34%

36%

2.3

2.4

Consumption Production Stock to Use

Barley, corn, millet, mixed grain, oats, rice, rye, sorghum & wheat (source: USDA, March 2012)

30%

32%

2.1

2.2

ne

26%

28%

1.9

2.0

illio

n To

nn

22%

24%

1.7

1.8B

20.35%

16%

18%

20%

1 4

1.5

1.6

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16%1.4

High Farm Commodity Prices May Support High

14 16

Fertilizer PricesGrain Prices: 1997-2012 SoybeanUS$/ bushel

13 4

68

10 12

Wheat

13.4

6.4

-2 4 6

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Corn6.5

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

1400900

1000

Potash Prices (1997-2012) Phosphate Prices (1997-2012)US$/t spot, Standard grade KCl US$/t spot

Source: CBOT (March 11, 2012)

600

800

1000

1200

400

500

600

700

800

900

0

200

400

0

100

200

300

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Sources: Fertilizer Week (March 9, 2012)FOB Vancouver TSP N. AfricaDAP US GulfDAP N. Africa

Potential for Increasing Crop Yield in Major Food

12300

Growing Countries by Improved Fertilizer ApplicationExample: Corn

10250

aa

K2O P2O5 N Yield [kg/ha]

8200

es,

per H

a

Kg p

er H

a

4

6

100

150

eld

Ton

ne

usag

e, K

2

4

50

100

Crop

Yie

Nut

rient

0-USA EU-27 China India

N

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Source: USDA, July 2011, IFA

Total Potash Consumption OutlookIn Selected Geographies, 2007-2017

15

11

13

es K

Cl

7

9

illio

n To

nne

3

5

M

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017CAGR 2007-

17China PR 10 68 9 00 8 50 10 38 11 17 11 70 12 32 12 85 13 58 14 07 14 76 3 3%

3

China PR 10.68 9.00 8.50 10.38 11.17 11.70 12.32 12.85 13.58 14.07 14.76 3.3%Brazil 6.99 6.18 5.28 6.53 7.46 7.54 7.71 8.05 8.38 8.72 9.05 2.6%India 4.42 5.55 6.08 5.88 4.87 5.03 7.53 7.87 8.20 8.53 8.87 7.2%USA 8.51 6.09 8.03 8.21 8.94 9.29 9.48 9.66 9.76 9.86 9.96 1.6%

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EU 27 6.04 3.49 4.04 5.13 5.02 5.44 5.63 5.69 5.73 5.75 5.77 -0.4%Sources: FertEcon Potash Outlook 2011-4 (Feb 2012)

ICL’s Potash Market Share* in 2010 Increasing in h F G i E i M kthe Fast Growing Emerging Markets

China (total 5.2Mt)India (total 6Mt) Brazil (total 6.1Mt)

Uralkali+Belaruskali

32%

Mosaic3%

PCS5%

SQM2% K+S

3%

APC6%

SQM3%

Uralkali+Belaruskali

29%

APC13%

K & S3%

SQM1%

32%

K+S16% Uralkali

+ Silvinit

Canpotex18%

29%

Canpotex19%

Silvinit3%

ICLCanpotex

42%

Belaruskali

ICL15%

Silvinit15% ICL

16%23%Belaruskali

13%ICL20%

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* Out of imports in million metric tons (Mt)

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

* Out of imports in 2010, in million metric tons (MT)

ICL’s Potash Market Share* in 2011 Increasing in h F G i E i M kthe Fast Growing Emerging Markets

China (total 6.4Mt)India (total 4.5Mt) Brazil (total 7.5Mt)

Uralkali+Belaruskali

38%K+S

PCS4%

SQM3%

BPCK+S1%

APC11% K+S

3%

APC6%

SQM1%

K S12%27%

Canpotex18%

Uralkali+ Silvinit

33%Canpotex

27%

SilvinitCanpotexIPC22%

Belaruskali10%Silvinit

3%ICL9%

Canpotex31%ICL

21%ICL

20%

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Sources: China Fertilizer Weekly Market Report, Sindicaro Da Industria DE Adubose Corretivos Agricolas No Estado De Sao Paulo, Company estimates* Out of imports in 2011, in million metric tons (MT)

Potash - ICL Increased Production Capacity Overthe Years by Acquisitions & Debottlenecking

Potash: An addition of 1.15 mt (final products) at Sodom since 1998 (+77%) in dditi t th i iti i E

5,600

addition to the acquisitions in Europe.

Production in thousands of mt KCl

Stage 11 – to add up to 500kt by 2015

2 600

3,600

4,600

600

1,600

2,600

20102006200219981994199019861982197819741970

20021998

Converting salt pond number 3 to Carnallite +180kt2002

Purchase of CPL-UK

Purchase of IPB-Spain

Debottlenecking

plant capacity expansion +450kt

Debottlenecking

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Debottlenecking +300kt +400kt

Rationalization and Expansion Plan Started in 2011

Fi l G l C t i l d ti it

at Iberpotash (Spain)

Final Goal: Create a single production site based on a high-grade mine (Cabanasas):1 1M tonnes/yr potash output (1 05M1.1M tonnes/yr potash output (1.05M fertilizer grade and 50K technical grade)630K tonnes/yr compacting capacity630K tonnes/yr compacting capacity 1.5M tonnes/yr vacuum salt 500K tonnes/yr de-icing salt

The Suria/Cabanasas center will be expanded and the Vilafruns/Sallent center will be moth-balled

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Polyhailite at Cleveland Potash (England)Polyhailite at Cleveland Potash (England)

Polyhalite:A natural mineral considered to be an organic fertilizer with 14% K2O, 50% SO3, 7% MgO & Chlorine<2%

Vast reserves: over 1 billion tonnes at over 90% purity(i.e. 140M tonnes of low-chlorine potash) ( p )

Easy accessibility: 150 meters below the potash seam in the shallowest

t f th ipart of the mine

Favorable minerology: thick ore layer = easy processing easy miningthick ore layer = easy processing, easy mining

Existing infrastructure: shafts, conveyor belts, railway, skilled mining labor and downstream processing

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g p gcapabilities

Phosphates –Mi d f th N D t i I lMined from the Negev Desert in Israel

3 Open Pit Mines Restored Mine

Potential Production Capacity (bulk products):

Phosphate rock: ~4.5 million tonnes

Phosphoric acid: ~550 thousand tonnes

Phosphate & compound fertilizers (TSP, SSP, NPKs): ~1.9 million tonnes

Bulk production sites: Rotem (IS), Amsterdam (ND), Ludwigshafen (GE)

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In addition: Specialty fertilizers, animal feed additives

ICL has Become a Global Leader in Specialty Fertilizers F ll i R t A i itiFollowing Recent Acquisitions

2011Acquisitions in Core Businesses

WSF(MKP MAP)

Everris(Scotts Global Pro)

WSF, CRF, SRF(MKP, MAP)

Liquid & Soluble NPKs

ICL SPECIALTY FERTILIZERSBusiness of : ~$650M Sales

FuentesWSNPKs, Liquids

Nutrisi (50%)NPKs~ 700 employees

one of the industry’s leading players

Nutrisi (50%)PG Mix, WSNPKs

Broad portfolioBroad portfolio of unique branded

Wide and strongsales force witha global reach

Best-in-ClassR&D and

technology

Wide and strongsales force witha global reach

Broad portfolio of unique

branded products

Best-in-ClassR&D and

technology

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products a global reach technologya global reachbranded products technology* WSF= Water Soluble Fertilizers; WSNPK= Water Soluble compound fertilizers; CRF= Controlled Released Fertilizers; SRF= Slow Released Fertilizers

ICL Global Leadership in Specialty Fertilizers

Contributes to faster growth (est. 5%-8% per annum)

ICL Global Leadership in Specialty Fertilizers

Enriches ICL’s product portfolio with the market’s leading brands

Expands ICL’s technological capabilities with unique technologiesp g p q gThe Controlled Release

1. NPK granules are partially coated with an elastic polymer

2. After application, water enters through the pores

3. The nutrients are dissolved in the water, resulting in a concentrated nutrient

4. Controlled nutrient release over 3, 6, 9 or 12 mos

Release (CRF) Concept

Extends ICL’s fertilizer business downstream to the end-user

Creates a platform for geographical expansion in specialty fertilizers

solutions

Creates a platform for geographical expansion in specialty fertilizers

Enables ICL to bring additional environmentally-friendly products toglobal agricultural markets

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global agricultural markets

ICL Industrial Products

From Minerals of the Dead Sea to New Products and ‘Green’ Applications

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ICL Industrial ProductsICL Industrial Products

Organophosphorus flame retardants

Other

Bromine based flame retardants

Water treatment biocides

Brominated inorganic & ag

chemicals

Segment Sales - 2010: $ 1,313 Million1-9/2011: $1 178 Million

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1-9/2011: $1,178 MillionBased on 2010 external sales

World's Leader in Elemental BromineWorld s Leader in Elemental Bromine

Breakdown of Global Bromine Capacity

ICL is the largest elemental-bromine d i th ld ( it 280kt/ )

China13%

Others9%

producer in the world (capacity 280kt/y)

ICL is one of the 3 leading playersin the bromine-compounds industry

ICL40%

Chemtura14%

13%

Largest transportation capacity (fleet of iso-containers)

Ad d R&D (I l US)Albemarle

24%

Advanced R&D (Israel, US)developing eco-friendly productsStrong HSE (health, safety, environment )

Global Bromine Marketin 2011 ~600Kt

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Sources: US Bureau of Mines, Arkansas Oil & Gas Commission publications, ICL estimates.

in 2011 600Kt

Recent Improvement in the Electronic Industry Might Support Stronger FR Sales Boosted by Lower Chinese SupplyStronger FR Sales Boosted by Lower Chinese Supply

1.01

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Source: IPC Association, Semiconductor Equipment and Materials International (SEMI), March 2012)

Worldwide Oil & Gas Rig Count – A Significant Increase from 2009 Lows

4,000

4,500

3,000

3,500

2 000

2,500

3,000

1,500

2,000

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Source: Baker Hughes Rig Count, February 2012

Growth Driven by Global Megatrends,St i t R l ti & I tiStricter Regulations & Innovation

Significant potential in mercurySignificant potential in mercuryemission reduction in coal-firedpower plants & cement factories(primarily in the US* & China)

Emissions l

Waterscarcity

Fire safetyhigher standards

Growing populationcontrol

Mercury removal:bromine based

scarcity• Climate change &

increasing demand• AquatabsTM

higher standards• The new PolyquelTM

product line• “Green” construction

populationIntermediatesfor agro, foodand pharma

MerquelTM

product line• New regulations

2009 acquisition of Medentech, world leader in end-user drinking water treatment, to serve as a

* A tax credit for burning “Refined Coal” (section 45) for electricity generation is in place (10 years). EPA Federal regulation (to reduce mercury emission by ~91%) expected in 2014/5 Many states have already started

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platform for growthin 2014/5. Many states have already started implementation.

ICL PerformanceProducts

G

Global Leader in Specialty Phosphates

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ICL Performance Products:Ph h t D t A li tiPhosphate Downstream Applications

Phosphate Salts

Other

andFood Additives

Other Phosphate

Phosphoric Acid*

Other Phosphate Based Products

75% phosphate & phosphorus-based products25% other

Segment Sales - 2010: $1,340 Million1-9/2011: $1,162 Million

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* Food, technical & electronic grade acids

Based on 2010 external sales

The Most Vertically Integrated SpecialtyPh h CPhosphates Company

From Raw Materials to Downstream Products & Services

Food Additives

Food Hygiene

High price

Phosphate Salts

Phosphoric

Food GradePhosphoric

Acidosp o cAcid (MGA)Commodity

Fertilizers

Acid

Phosphate Rock

#1 in pure phosphoric acid & specialty phosphates

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Services and SolutionsBasic ProductsLow price

Back-Integrated through Tailored SolutionsBack Integrated through Tailored Solutions

Functional Food Ingredients

WildfireSafety

Ingredients

PhosphateTechnicalSpecialties

Negev DesertHygieneServices

Phosphate Rock

Purified Phosphoric

Acid

Sp

P2S5

Electronic Grade Phosphoric Acid

Israel

Back Integration

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Value Added Applications

Summary:W ll P iti d t A hi S t i bl G thWell Positioned to Achieve Sustainable Growth

Access to vast, low cost natural resources

Proven competencies and execution capabilities

G f fGlobal footprint with strong infrastructure

Well-positioned segments with high barriers to entryp g g y

Strong fundamentals of our marketsWith the salt dredging &

New market drivers and opportunities

Dedicated to sustainability and HSE

potash royalties issues resolved, ICL is well positioned for Dedicated to sustainability and HSEfuture development & sustainability

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ICL:Committed to Responsible Value Creation

Thank you

P. 42

www.icl-group.com

Solar Evaporation Ponds at the Dead Sea –E ti P d N 5

Carnallite Ponds

Evaporation Pond No.5

Pond no. 5

Salt PondsHotels

Production Sites

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