Makhteshim Agan Industries Agenda Overview of

Makhteshim Agan Industries

Agenda • Overview of 2007 results • 2007 business environment • Change and efficiency plan update 1

Strong 2007 growth achieved by most players led by MA Industries FY Sales’ growth (07’ vs. 06’) ~12% Average growth of leading Ag. Chem players (published thus far) • • • Source: Phillips Mc. Dougall, Companies’ disclosure; MAI analysis MAI Agro sales only Dow results include Agricultural Science Du. Pont sales include Ag & Nutrition (inc, Pioneer) 2

2007 results’ overview 2007 2006* 2005 2, 081. 2 1, 778. 8 1, 740. 7 Gross Profit 697. 4 609. 8 681. 0 % 33. 5% 34. 3% 39. 1% Operating Profit 287. 6 222. 8 331. 1 % 13. 8% 12. 5% 19. 0% Net Income 178. 2 139. 2 207. 5 % 8. 0% 7. 8% 11. 9% EBITDA 354. 5 280. 6 377. 5 % 17. 0% 15. 8% 21. 7% Sales ØRecord sales ØStrongly improved profits *2006 excludes one-time provisions 3

MA Industries EBIT improvement leadership FY EBIT/Operating Profit Growth (07’ vs. 06’) • Dow results include Agricultural Science • Du. Pont sales include Ag & Nutrition (inc, Pioneer) Source: Phillips Mc. Dougall, Companies’ disclosure; MAI analysis 4

2007 business environment Ø Strong Ag. Chem demand § Supportive agricultural output price levels § Increased planted area and rate of application § Brazil recovering from 2006 to record levels ØIncreasing raw material prices § Oil price reaching record-highs, affecting intermediate prices, energy, transportation § Suppliers experiencing increased demand, lower Chinese export subsidies, appreciating labor costs and local currencies ØBeginning of Ag. Chem product price increases § Implemented as of Q 4, for the first time in many years ØOverall supportive currency environment § Euro appreciation has overall positive input § Other currencies such as Real, Shekel, Yuan offsetting some of positive Euro Effect 5

Change plan: new organizational structure in place Ø Global leadership empowered § Regional managers made part of Global Leadership Group § Regional P&L established; Operating profit (not only sales) targets set for the first time; Pricing responsibility delegated § Full transparency of profitability system Ø Corporate functions integrated § New operational HQ created in Airport City § Significant 3 -way duplications removed: unified Sales, Product Development, Purchasing, Finance and IT departments ØIsrael plant operations integrated § Unified management, for both Agan and MCW production sites § Duplications removed at executive level § New collective employment agreements signed and voluntary retirement schemes underway 6

Change plan: continued ØProduct portfolio being replenished § Unified product development division created § Work launched to enhance portfolio ØCritical functions established § Supply Chain: group-wide supply chain created to maximize and economies of scale § Talent Management: newly appointed head deploying performance-based global talent compensation program § Legal Department: created to centralize and streamline legal services ØManagement compensation based on Key Performance Indicators § 2008 budget broken down by manager responsibility rather than legal structures § Underpinned by improved data systems: products’ profitability system, purchase monitoring module 7

Effectiveness and efficiency improvement targets as presented in March 2007 2002 2003 2004 2005 2006 Operating Profit 139 212 289 330 223 % 16% 18% 19% 13% EBITDA 173 244 324 378 281 % 19% 21% 22% 16% ØIn 2006 key profitability margins declined ~5 percentage points vs. last years Ø Efficiency plan to recapture some of lost ground and bring our margins in line with sector leaders ØFully phased effect by 2009, with most part achieved by YE 2008 2006 data excludes one-time provisions 8

Effectiveness and efficiency improvement execution 2007 2006* Gross Profit 697. 4 609. 8 % 33. 5% 34. 3% Operating Profit 287. 6 222. 8 13. 8% 12. 5% 354. 9 280. 6 17. 1% 15. 8% % EBITDA % Despite slight decline of gross margin, cost reduction/containment and robust demand result in improved operating margins ØProgress ahead of 2007 targets ØCost savings derived from reduction of purchasing spend, increased throughput and reduced labor costs ØCost saving in purchasing spend mitigated by increase in raw material prices ØContinuing cost saving efforts include, according to plan, alternative energy sources, supply chain improvements, overhead and production efficiencies *2006 excludes one-time provisions 9

Dividend and share buyback program ØBoard has approved $120 m dividend ØLaunching share buyback program of up to $100 m ØUnderpinned by continued strong collection and cash flow generation ØListing 2006 bonds for trading, while reducing coupon by 25 bps; shelf registration for future capital raising ØRobust balance sheet continues to support performance 10

External factors to watch into the year Current status ØCompetitors expected sales’ growth and selling prices ØFarm output prices (agricultural commodities and other) ØCost of other farm inputs (energy, seeds, fertilizers) ~ ØEnergy as it affects our cost of raw materials, production and logistics ~ ØEuro/$ rates (especially in Q 1, Q 2) ØBrazilian farmer situation (esp. in Q 3, Q 4) Øand, of course, the weather… 11

www. ma-industries. com For additional information please contact Ron Zakai: E-mail: ron. zakai@ma-industries. com Office: Cell: 972 -7 -32321910 972 -52 -7310002

Demand-driven agricultural economics support continued growth Ø Declining stock-to-use ratio despite increased supply: acreage, yield Source: USDA 13

Resulting upward trend in soft-commodity prices All Crops Price Index 1997 - Present ØImproved farm economics more than offset higher input costs Source: USDA 14