Makhteshim Agan Industries

1. Makhteshim Agan Industries

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

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

4. 2007 results’ overview 2006* 2005 2007 Sales 2,081.2 1,778.8 1,740.7 609.8 697.4 Gross Profit 681.0 % 33.5% 34.3% 39.1% 287.6 Operating Profit 222.8 331.1 13.8% 12.5% 19.0% % 178.2 Net Income 139.2 207.5 11.9% 7.8% % 8.0% 354.5 EBITDA 280.6 377.5 15.8% 21.7% % 17.0% • Record sales • Strongly improved profits * 2006 excludes one-time provisions

5. 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

6. 2007 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

7. 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

8. 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

9. 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 2002 2003 2004 2005 2006 223 289 Operating Profit 212 330 139 13% 19% 18% 19% 16% % 281 324 EBITDA 244 378 173 16% 21% 21% 22% 19% % 2006 data excludes one-time provisions

10. Effectiveness and efficiency improvement execution 2006* 2007 609.8 697.4 Gross Profit % 34.3% 33.5% Operating Profit 222.8 287.6 12.5% 13.8% % 354.9 280.6 EBITDA % 17.1% 15.8% 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 * 2006 excludes one-time provisions

11. 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

12. External factors to watch into the year Current status  • 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…  ~ ~   

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

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

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