ADAMA Delivers First Quarter Business Growth Despite COVID-19 pandemic

BEIJING, CHINA and TEL AVIV, ISRAEL, April 27, 2020 – ADAMA Ltd. (the “Company”) (SZSE
000553), today reported its financial results for the first quarter ended March 31, 2020.
During the first quarter of 2020, the global agrochemical market, amongst many others, was impacted
by the unprecedented coronavirus pandemic, COVID-19. The pandemic, which started early in the
quarter and now continues to rage throughout the rest of the world, has had a number of adverse
effects on ADAMA’s performance in the first quarter, the most significant of which were:
▪ In China, while operations at the Company’s Huai’An, Jiangsu site have continued without
material interruption, operations at the Jingzhou site in Hubei province were temporarily
suspended from late January until the end of February due to the coronavirus outbreak in the
province. Although operations at the site recommenced at the beginning of March, restrictions on
logistics remained, impacting the free transport of goods to and from the sites and to the ports;
▪ Renewed tightening in supply of raw materials and intermediates sourced from third parties in
China and around the world;
▪ Restrictions on international trading and sales through the Company’s global channels, as well
as increased costs of global shipping, airfreight and other logistics;
▪ Lower demand in the Company’s US Consumer & Professional (non-crop) businesses, as
retailers slowed their restocking of products due to the coronavirus outbreak;
▪ Significant impacts on global currency markets, which have seen the rapid depreciation of many
currencies against the US dollar, most notably the Brazilian Real, Australian dollar, Turkish Lira
and Indian Rupee, as well as increased volatility in the Euro. These movements have negatively
impacted the Company’s performance in the first quarter compared to the corresponding period
last year.
The ongoing spread of the pandemic is expected to continue to negatively impact the performance of
the Company in the second quarter, and potentially beyond. The Company is actively managing its
response to the outbreak in order to ensure the safety of its employees and limit the impact on the
Company’s performance. Actions being taken include extending and strengthening distribution
channels, use of expedited transport options where possible, working collaboratively with supply chain
partners, and raising prices wherever possible to accommodate the weaker currencies and increased
logistics costs.

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