Icl Group Ltd. · TASE:ICL

Icl — Q2 2020 Earnings Presentation

36 slides from Icl's earnings presentation, Jul 29, 2020

1. Slide 1: Q2 2020 Results

   | Q2 2020 Re RavivZoller\ ff President &CEO/ | Br tot % /\

2. Slide 2: Important Legal Notes

   Important Legal Notes Disclaimer and Safe Harbor for Forward-Looking Statements The information contained herein in this presentation or delivered or to be delivered to you during our presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in ICL Gr

3. Slide 3: Q2 2020: Resilience In The Face Of Market Headwinds

   I Q2 2020: Resilience In The Face Of Market Headwinds 0 Positive operating income in all segments and positive free cash flow despite the impact of COVID-19 and low commodity prices 0 Improvement in adjusted net income and operating cash flow vs. the prior quarter, which was not materially impacted

4. Slide 4: Key Financial Metrics

   Key FinancialMetrics Q2 2020 Q2 2019 % change Q1 2020 % change • ••••• ••• •• •••• •• • ••• • •• • • ••• • ••• •••• • • • • • ••• • • • • •••• • • •••• • • • • • •••• • • • • ••• • • • • • ••• • • • • • ••• • • • • Sales 1,203 1,425 (16%) 1,319 (9%) Operating income (169) 240 NA 132 NA Adjusted oper

5. Slide 5: Industrial Products Segment

   r- IndustrialProducts Segment ■ ■ Global economic slowdown related to ■ COVID-19 impacted demand for clear SEGMENT EBITDA (1) ■ ■ brine fluids and flame retardants ■ ■ Continued strong performance in $ millions ■ ■ specialty minerals due to high demand ■ ■ for supplements and pharma applications ■ ■

6. Slide 6: Potash Segment

   Potash Segment Record first half potash production at the Dead Sea Average realized price dropped by $63 SEGMENT EBITDA(1) per tonne, 22% lower compared to Q2 2019 $ millions COVID-19 impact of about $23 million (ICL Iberia: $13mn and ICL UK: 9mn) Polysulphate production increased by 38% over Q2 201

7. Slide 7: Phosphate Solutions Segment

   PhosphateSolutions Segment Continued strong demand for food additives SEGMENT EBITDA(1) A 20% increase in operating income for $ millions phosphate specialties, coupled with lower cost of raw materials, partially compensated for a large decline in phosphate commodity prices Solid performance for YPH

8. Slide 8: IAS Segment

   IAS Segment EBITDA and EBITDA margin increased by 29% and 33%, respectively, due to lower cost of raw materials and internal cost SEGMENT EBITDA (1) efficiency initiatives $ millions Sales decreased by 3% due to exchange rates and lower sales to the turf and ornamental markets as a result of COVID-1

9. Slide 9: New Focused Crop Nutrition Sales & Marketing

   New Focused Crop Nutrition Sales & Marketing Integrated perspective of the Agriculture market to address current gaps and missedopportunities Fromasiloedorganizationstructure to a single unified commercialfront facing the Ag sector Potash Division ■ •• ■ Crop Nutrition •• Potash Polysulphate •• •• C

10. Slide 10: Summary & Outlook

    Summary & Outlook 0 Second quarter results resemble prior period, despite the impact of COVID-19 on the former. All four operating segments were profitable 0 Production in all sites is back online according to plan, and operating under health and safety regulations related to COVID-19 0 COVID-19prim

11. Slide 11: Kobi Altman, CFO

    Kobi Altman CFO ANICL

12. Slide 12: Key Financial Parameters

    Key FinancialParameters Adjusted EBITDA(1) Adjusted Net Income(1) Operating Cash Flow 10% 28% 24% 23% 11% 19% 20% 18% 6% 17% 19% 13% 15% 4% 5% 4% 340 307 201 250 246 151 130 48 60 72 239 368 212 166 177 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q2 2019 Q3 2019 Q

13. Slide 13: Sales Impacted by COVID-19 and Cyclical Low Commodity Prices

    Sales Impacted by COVID-19 and Cyclical Low Commodity Prices SALES Industrial Products: 51 Potash: 82 1,425 110 100 12 1,203 Q2 2019 Commodity Quantities Exchange rates Q1 2020 prices Numbers may not add due to rounding and set offs 13 All figures shown in US $ millions

14. Slide 14: Profitability Impacted by Commodity Prices

    Profitability Impacted by CommodityPrices Adjusted EBITDA(1) Segment Contribution 340 110 12 4 14 18 246 Q2 2019 Prices Quantities Exchange rates Energy, Raw materials Q2 2020 transportation & other expenses 1. Adjusted EBITDA is a non-GAAP financial measures. See appendix to this presentation for r

15. Slide 15: Non-GAAP Adjustments

    NON-GAAP Adjustments ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Q2 2020 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Impairment and write-downs of assets Rotem site (Israel) 175 Vilafruns mine (Spain) 12 TOTAL IMPAIRMENTS 187 Early retirement Rotem sites 52 Bromine compounds 15

16. Slide 16: Strong Balance Sheet and Liquidity

    Strong Balance Sheet and Liquidity Total cash balance and Fitch and S&P credit SeriesGbondalmostdoubled available credit facilities rating reaffirmed by issuingadditional $1.15 Bn BBB- with stable outlook ~$110 Mn Net Debt to EBITDA ratio Operating cash flow Q2 2020dividend 2.4X $177 Mn $36 Mn 16

17. Slide 17: CRU Fertilizer Historical Prices

    - GMOP CFR Brazil - GTSP CFR Braz il Source: CRU Fertilizer Historical Prices July 2020 AICL 17

18. Slide 18: ~\>o ll?4 ~<o

    450 400 350 300 240 250 220 200 ~ ~~ ll?4 4..o~ IJ.,4r. ,i,~ 0 ~\>o ~<o <o <o 150 9,1<, Q,2<, Q_,-,<, Q'il<, Q Q,?<, Q_,-,<, Q,..<, Q,1<, Q<<, Q.;,<, Q,..<, 9,1<, Q,2<, '.l<, 0,1'il 0,1,.. 0,1'il 0,1,.. 0,1$ 0,1$ 0-1.s 0-1.s 0,16 0,16 0,16 0,16 0,1> 0,1> - - GMOP CFR Brazil - - GTSP CFR Brazil 18

19. Slide 19: Key Takeaways

    Key Takeaways DIVERSE, RESILIENT BUSINESS FINANCIAL STRENGTH Differentiated business model and growth Strong liquidity profile and no significant near- of specialty businesses provides strong term principal repayments ensures flexibility support in challenging market conditions to manage and opportu

20. Slide 20: Key Takeaways

    Key Takeaways DIVERSE, RESILIENT BUSINESS FINANCIAL...STRENGTH I UI SI- t \!9J if 1)1 NU I :II! t Wjl IOI Differentiated business model and*growth Strong liquidity profile and no significant near- ...,, iii ll,'II, . (I J II It lfl ' of specialty businesses provides strong term principal repayments

21. Slide 21: ‫ן‬

    ‫ן‬

22. Slide 22: Appendix

    APPENDIX

23. Slide 23: Q2 2020 Sales

    ■ ■ ■ Q2 2020sales ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 1,425 110 100 12 1,203 Q2 2019 Prices Quantities Exchange rates Q2 2020 1,425 92 79 51 6 6 1,203 Q2 2019 Potash Phosphate Industrial IAS Setoffs & Q2 2020 Solutions Products eliminations Numbers may no

24. Slide 24: Q2 2020 Operating Income

    ■ ■ Q22020 OperatingIncome ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 240 10 230 18 6 4 12 110 128 297 Q2 2020 Q2 2019 Adjustments Q2 2019 Raw Energy, Exchange Quantities Prices Q2 2020 Adjustments to operating Adjusted mat

25. Slide 25: Segment Contribution

    Q22020OperatingIncome ■ ■ ■ ■ Segment Contribution ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 240 10 230 67 24 23 3 9 128 297 Q2 2020 Q2 2019 Adjustments Q2 2019 Potash Phosphate Industrial IAS Setoffs & Q2 2020 Adjustments to

26. Slide 26: Q2 2020 Industrial Products Sales and Segment Profit Analysis

    Q22020 Industrial Products ■ ■ ■ Sales and Segment ProfitAnalysis ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ SEGMENT SALES SEGMENT PROFIT 336 51 1 1 285 93 25 2 1 3 70 Q2 2019 Quantities Ex

27. Slide 27: Q2 2020 Potash Sales and Segment Profit Analysis

    Q22020Potash ■ Sales and Segment Profit Analysis ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ SEGMENT SALES SEGMENT PROFIT 432 82 8 2 340 105 82 1 2 14 38 Q2 2019 Prices Quantities Exchan

28. Slide 28: Q2 2020 Phosphate Solutions Sales and Segment Profit Analysis

    Q22020 Phosphate Solutions ■ Sales and Segment Profit Analysis ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ SEGMENT SALES SEGMENT PROFIT 518 42 30 7 439 32 8 30 7 3 1 17 Q2 2019 Quantitie

29. Slide 29: Q2 2020 Innovative Ag Solutions Sales and Segment Profit Analysis

    Q22020 InnovativeAg Solutions ■ Sales and Segment Profit Analysis ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ SEGMENT SALES SEGMENT PROFIT 202 4 1 1 196 12 3 1 1 15 Q2 2019 Exchange Pric

30. Slide 30: Finance Expenses

    Finance Expenses Q2 2020 Q2 2019 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Liabilities(1) 2,800 2,711 Interest rate 3.9% 4.3% Interest expenses 27 29 Interest capitalization (6) (4) Interest expense

31. Slide 31: Effective Tax Rate

    Effective TaxRate $ millions Q2 2020 Q2 2019 Adjusted income before tax(1) 98 194 Normalized tax rate 20% 21% Normalized tax expenses 20 40 Carryforward losses not recorded for tax purposes 6 3 Exchange rate impact and other items (2) - l Adjusted tax expenses 24 43 I Adjusted Effective tax rate 25%

32. Slide 32: Reconciliation Tables (1/3)

    Reconciliation Tables(1/3) Calculation of adjusted income before tax Q2 2020 Q2 2019 Adjusted operating income(1) ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 128 230 Finance expens

33. Slide 33: Reconciliation Tables (2/3)

    Reconciliation Tables(2/3) Calculation of adjustedEBITDA Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Net income attributabletothe (168) 60 48 130 158 shareholders of theCompany Depreciation andAmortization 119 118 113 110 109 Financing expenses,net 31 52 25 32 37 Taxes onincome (33) 20 15 35 46 Adjustme

34. Slide 34: Reconciliation Tables (3/3)

    Reconciliation Tables (3/3) Calculation free cash flow Q2 2020 Q2 2019 Q1 2020 Cash flow from operations 177 239 166 Additions to property plantand equipment and dividends from equity-accountedinvestees (157) (140) (138) Free cash flow 20 99 28 Calculation of adjusted net income to net income Q2 202

35. Slide 35: Non-GAAP Financial Measures

    Non-GAAP Financial Measures We disclose in this Quarterly Report non-IFRS financial measures titled, adjusted operating income, adjusted net income attributable to the Company’s shareholders, adjusted EBITDA, adjusted EPS, segment EBITDA, segment EBITDA margin and free cash flow. Our management uses

36. Slide 36: Visit us at www.icl-group.com

    visit us atwww.icl-group.com

ICL Group — Q2 2020 Earnings Presentation on 6ix