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1
2 Quarter 2005 Consolidated data
Isagro SpAs Board Meeting Milan, August 3rd, 2005
2
Transition to IAS (1/2)When and what

• Situation
• PL and B/S as of June 30, 2005 and December 31,
  2005 to be done according to IAS (International
  Accounting Standards)
• 2Q05
• 2Q05 to be done according to Italian Accounting
  Principles
• In the 2Q05 Quarterly Report the following data
  are anyway included
• pro-forma 2004 data according to IAS
• 6 month period as of June 30, 2005, according to
  IAS
• 1H05
• Actual 1H05 to be done according to IAS, with
  comparison with 1H04 pro-forma per IAS
• 3Q, 4Q and actual 2005
• 3Q05, 4Q05 and actual 2005 directly done
  according to IAS, with comparison with pro-forma
  data of previous periods

3
Transition to IAS (2/2) Main changes for Isagro
P R E I A S
P O S T I A S
Extraordinary items
Excluded from EBITDA
Included in EBITDA
On an impairment test basis
Goodwill amortisation
5 years
Deducted from Equity (in the year of cash-out)
2003 I.P.O. costs
Depreciated in 5 years
Work in progress/Job orders
At cost
At revenues
Depreciation of capitalised RD
5 years
Up to 15 years
Gains included in PL Losses includ. in PL
Gains not incl. in PL Losses included in PL
Copper hedging, forex swap
Contracts still to expire
Severance Indemnity Fund
Actual value
Discounted value
Included in B/S
Excluded from B/S
Financial leasing
Included in B/S
Factoring no-recourse
Excluded from B/S
4
Key-Facts

• Key facts 2Q05
• Release of Registration (7-year) to sell
  Tetraconazole on sugarbeet in USA
• 2005 budgeted sales of Tetraconazole on
  soybean/USA completed by June 30th, 2005
• Arbitration between Isagro and Proquimicos all
  requests by Proquimicos rejected by Arbitrators
• Finalisation of purchase of Sipcams quota of
  10 in Isagro Ricerca
• Decision of establishing a second manufacturing
  line for the production of M-Alcohol
  (intermediate for Tetraconazole) at Panoli plant
  (India), with increase of synergies from 2006
• Build-up of Bussi plant for the manufacturing of
  Tetraconazole in line with scheduled times
  (on-stream from January 2006)
• Facts occurred after June 30th, 2005
• Commitment to purchase, by December 15th, 2005,
  the 19 and 5 owned by Arysta LifeScience
  Corporation and Arysta LifeScience North America
  Corporation (former Arvesta Corporation) in
  Isagro Ricerca

5
A note on financial items

• Currency swap on / at 1.32 (on an avg. basis)
  for the entire estimated 2005 exposure
  denominated in US
• As of June 30, 2005, losses referring to the
  whole 2005 have been accounted (Euro 3.0
  million), with a future benefit (at parity of
  conditions) in 2H05
• Non speculative copper hedging (in relation to
  2005 budgeted sales), expiring in 2H05
• As of June 30, 2005, presence of unrealised
  gains for about Euro 1.8 million referring to the
  whole year, not included in PL
• Without IAS (2Q05), the unrealised gains are not
  included in PL,
• while with IAS they are included

6
Consolidated PL
2Q05 actual (no IAS)
1H05 estimated (with IAS)
1H04 tax rate 33 (no IAS)
1H05 estimated (no IAS)
2Q04 actual (no IAS)
Variations
million
Revenues
73.2
115.8
93.2
113.6
56.5
30
EBITDA
17.6
21.9
15.3
21.0
10.6
66
on Revenues
24.1
19.3
16.4
18.4
14.8
EBIT
14.5
17.6
10.4
15.8
7.9
84
on Revenues
19.8
15.5
11.2
13.9
14.0
Net financial charges
(1.1)
(1.9)
(1.5)
(1.2)
Forex costs
(2.3)
0.0
(3.0)
(0.2)
Extraordinary items
(0.4)
1.8
0.3
1.9
Result bef. taxes
10.8
13.4
10.4
11.7
8.4
29

Net result
7.4
5.5
6.4
Corresponding to 6.0 million as per 2Q04
Report, with fiscal rate for Isagro SpA at 20
7
Revenues break-down as of June 30

• Tetraconazole strong increase, thanks to sales
  in USA on soybean segment
• Copper 9, with reduction of marginality due
  to increase of copper cost

Consolidated revenues 114 m 22
Rest of
(only Agropharma)
Europe
20
Americas
30
104
10
25
79
1H05
Italy
Asia
38
9
RoW

-4
39
3
Rest of Europe
23
83
26
10
1H04
57
Americas
16
Italy
47
Asia
9
RoW
5
Proprietary Agropharma
Third parties Agropharma
Other products/services
million
8
Differences at EBITDA levelFrom June 30, 2004
(pre IAS) to June 30, 2005 (IAS)
million
9.6
(0.8)
(1.6)
(1.5)
21,9
0.9
21.0
15.3
W.I.P. and extr. items
Hedging of copper 2004
EBITDA Jun. 30, 05 estimated pre IAS
IAS adjust.
Tetracona- zole
EBITDA Jun. 30, 04 actual pre-IAS
EBITDA Jun. 30. 05 estimated with IAS
Exc. rates and others
Labour costs
As of June 30, 2005, unrealised gains for
1.8 million from copper hedging (with expiry date
in 2H05) not included in PL
9
Vietti Reform no fiscal neutrality

• From January 1st, 2004, Vietti Reform applied
• No fiscal interferences in PL and B/S data
• RD costs for new products still not launched but
  already depreciated added back to assets, net of
  deferred taxes, through the mean of an
  extraordinary item at PL
• Fiscal neutrality of the operation assumed only
  dereferred taxes on the extraordinary item (with
  establishment of deferred taxes fund)
• Circular of the Italian Fiscal Agency n. 27/E of
  May 31, 2005
• Fiscal neutrality excluded for RD costs
• Euro 7.3 million from deferred taxes fund to
  current taxes fund, with cash out in 2Q05

ISAGRO SPA HAS DONE AN INTERPELLATION TO THE
FISCAL AGENCY (ANSWER AWAITED BY OCTOBER 2005)
10
Free cash flow in 6 and 12 months
in 12 months
in 6 months
July 04 - June 05
July 03 - June 04
January - June 05
January - June 04
million
Cash flow
22.2
18.9
10.5
12.8
Variation of net working capital
12.1
(1.9)
(7.1)
(19.9)
Net investments
(14.4)
(13.2)
(8.7)
(2.3)
Others
(4.8)
4.0
(3.5)
3.1
Free cash flow of the period
15.1
7.8
(8.8)
(6.2)
Net proceeds from I.P.O.
-
13.5
-
-
One-off taxes per Vietti Reform
(7.3)
-
(7.3)
-
(interpellation on going)
Dividends paid to shareholders
(3.8)
(1.6)
(3.8)
(1.6)
? net financial debts (pre IAS)
4.0
19.7
(19.9)
(7.8)
Net result depreciation allowances
deferred taxes write-off, excluding 2004
extraordinary income per Vietti Reform
11
Consolidated balance sheetas of June 30
Circular 27/E of May 31, 2005, stating the non
fiscal neutrality of 2004 extraordinary income
per Vietti Reform 7.3 m moving from deferred
M/L term taxes fund to current taxes fund, then
cash-out in 2Q05 (interpellation on going)
Personnel fund (7)
million
Personnel fund (7)
Net fixed assets 64
Equity 66
Equity 59
Net fixed assets 75
12
short term 31
Net financ. debtsi 77
short term 49
Net curr. assets 71
Net curr. assets 79
Net financ. debtsi 73
- 5
M/L term 42
M/L term 28
June 30, 2005
June 30, 2004
Debt/Equity 1.29
Debt/Equity 1.09
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Diffusion of Asian Rust on soybean in USA
The situation at the beginning of 2005

• United States first world producer of soybean
• Asian Rust spores able to overwinter in the
  Southern States of USA, with permanent inoculum
• Pattern of annual diffusion winds transporting
  the spores towards Central-Northern States, where
  most of the production is concentrated
• Conditions rain, wind, tropical storms

What happened in 2Q05

• Inoculum present in Southern States, with spores
  overwintered though climatic conditions
  particularly tough
• Initial phase with low rain with second phase
  with tropical storm and hurricane
• So far, limited diffusion of the disease in the
  USA
• Budgeted sales at distributors level already
  completed by June 30, 2005
• In September it will be possible to check the
  actual level of consumption by farmers and the
  consequent stocks at year end

13
Contacts
For information, please contact
Ruggero Gambini Strategic Control Manager
Investor Relator tel. [phone] fax.
39.02.40901.353 email rgambini_at_isagro.it
Internet www.isagro.com
General information isagro_at_isagro.it
14
Disclaimer
Estimates, considerations, statements and
opinion, except for what referring to actuals,
are to be considered as data, estimates,
considerations, statements and opinion regarding
future, and have been elaborated and stated on
the basis of available information and/or on the
basis of those information considered the most
reliable and/or the most reasonable. Such data,
estimates, considerations, statements and opinion
could prove to be incomplete and/or wrong and
they incorporate elements of risk of uncertainty,
beyond the company control. For such reasons,
actual results may prove to differ versus Data,
estimates, considerations, statements and opinion
contained in such presentation. Such data,
estimates, considerations, statements and opinion
are not to be considered as a proposal of
investment, under any circumstances, in Isagros
shares. Any refer to Isagro products is to be
considered exclusively as general information
about the group activity and is not to be
intended, under any circumstances, as invitation
to employ or propose the employment of such
products.