Makhteshim Agan Industries

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

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

results’ overview Sales Gross Profit % Operating Profit % Net Income % EBITDA % * 2, % % % % , % % % % 1, % * 2006 excludes one-time provisions % % %  Record sales  Strongly improved profits

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

business environment  Strong AgChem demand  Supportive agricultural output price levels  Increased planted area and rate of application  Brazil recovering from 2006 to record levels  Increasing 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  Beginning of AgChem product price increases  Implemented as of Q4, for the first time in many years  Overall supportive currency environment  Euro appreciation has overall positive input  Other currencies such as Real, Shekel, Yuan offsetting some of positive Euro Effect

6 Change plan: new organizational structure in place  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  Corporate functions integrated  New operational HQ created in Airport City  Significant 3-way duplications removed: unified Sales, Product Development, Purchasing, Finance and IT departments  Israel 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

7 Change plan: continued  Product portfolio being replenished  Unified product development division created  Work launched to enhance portfolio  Critical 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  Management 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

8 Effectiveness and efficiency improvement targets as presented in March 2007  In 2006 key profitability margins declined ~5 percentage points vs. last years  Efficiency plan to recapture some of lost ground and bring our margins in line with sector leaders  Fully phased effect by 2009, with most part achieved by YE 2008 Operating Profit % EBITDA % % % % % % % % % % % data excludes one-time provisions

9 Effectiveness and efficiency improvement execution 2006* 2007 Gross Profit % Operating Profit % % % % % Despite slight decline of gross margin, cost reduction/containment and robust demand result in improved operating margins  Progress ahead of 2007 targets  Cost savings derived from reduction of purchasing spend, increased throughput and reduced labor costs  Cost saving in purchasing spend mitigated by increase in raw material prices  Continuing cost saving efforts include, according to plan, alternative energy sources, supply chain improvements, overhead and production efficiencies EBITDA % %15.8% * 2006 excludes one-time provisions

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

11 External factors to watch into the year  Competitors expected sales’ growth and selling prices  Farm output prices (agricultural commodities and other)  Cost of other farm inputs (energy, seeds, fertilizers)  Energy as it affects our cost of raw materials, production and logistics  Euro/$ rates (especially in Q1, Q2)  Brazilian farmer situation (esp. in Q3, Q4)  and, of course, the weather…   Current status ~ ~   

For additional information please contact Ron Zakai: Office: Cell:

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

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