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

20.2%

16.8%16.2%

14.2%13.2%

11.2% 11.1% 10.8%

0.5%

8.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

MAI

Mon

sant

oFM

C

Synge

nta

Chemtu

raDow

BASF

Bayer

DuPont

Isag

ro

~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’)

4

2007 results’ overview

Sales

Gross Profit

%

Operating Profit

%

Net Income

%

EBITDA

%

20052006*

2,081.2

697.4

33.5%

287.6

13.8%

178.2

8.0%

354.5

17.0%

2007

1,740.7

681.0

39.1%

331.1

19.0%

207.5

11.9%

377.5

21.7%

1,778.8

609.8

34.3%

* 2006 excludes one-time provisions

222.8

12.5%

139.2

7.8%

280.6

15.8%

Record sales

Strongly improved profits

5

MA Industries EBIT improvement leadership

FY EBIT/Operating Profit Growth (07’ vs. 06’)38.1%

23.3%

33.3%

26.8%

12.5%

19.3%

22.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

FMC

MAI

Synge

nta

DuPont

Bayer

BASFDow

•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

Operating Profit

%

EBITDA

%

212

18%

244

21%

2003

330

19%

378

22%

2005

289

19%

324

21%

2004

139

16%

173

19%

2002

223

13%

281

16%

2006

2006 data excludes one-time provisions

10

Effectiveness and efficiency improvement execution

2006*2007

Gross Profit

%

Operating Profit

%

287.6

13.8%

222.8

12.5%

697.4

33.5%

609.8

34.3%

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

%

354.9 280.6

17.1% 15.8%

* 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

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…

Currentstatus

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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

1,600

1,700

1,800

1,900

2,000

2,100

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08E

0%

5%

10%

15%

20%

25%

30%

Global Grains Production Stock To Use

Source: USDA

15

Resulting upward trend in soft-commodity prices

85

95

105

115

125

135

145

155

165

175

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

All Crops Price Index 1997 - Present

Improved farm economics more than offset higher input costs Source: USDA