Ag Growth International Inc. · TSX:AFN
Ag Growth International — Investor Presentation (September 2014)
25 slides from Ag Growth International's investor presentation, September 2014
Slide 1: Ag Growth International
AGI= AG GROWTH INTERNATIONAL www.aggrowth.com
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT Certain statements contained herein constitute forward-looking statements that reflect our expectations regarding the future growth, results of operations, performance, business prospects, and opportunities of the Company. Forward-looking statements may contain such words as “
Slide 3: Corporate Overview
CORPORATE OVERVIEW www.aggrowth.com 3
Slide 4: Corporate Overview
CORPORATE OVERVIEW We are a global leader of innovative solutions for grain handling, storage and conditioning. Our customers will determine our path. Our values will guide us. HEADQUARTERS Winnipeg, Manitoba ~$600 million, publicly traded on MARKET CAP the TSX under the (AFN) symbol TOTAL SALES Q2
Slide 5: Service all key grain handling segments
CORPORATE OVERVIEW Service all key grain handling segments FARM EXPORT DESTINATION PROCESSOR ELEVATOR PORT PORT www.aggrowth.com 5
Slide 6: AGI History
AGI HISTORY 2014 2011 2010 2008 2007 2006 2005 2004 IPO 2000 1998 1997 1996 Founded November, 1996 6
Slide 7: Leading Brands
AGI= LEADING BRANDS Secreto Hija ray ste WESTFIELD= WHEATHEART= HIROLLER=
Slide 8: Product Catalogue
PRODUCT CATALOGUE FARM Rem Westfield COMMERCIAL Hi Roller Batco Twister Tramco Twister Wheatheart Grain Guard Grain Guard Union Iron HSI Mepu Mepu Airlanco www.aggrowth.com 8
Slide 9: Business Segments
BUSINESS SEGMENTS PORTABLE PERMANENT GRAIN STORAGE GRAIN HANDLING GRAIN HANDLING AND CONDITIONING World’s largest manufacturer of Leading brands Leading market share in aeration in portable grain handling equipment Offer up to 4,600 MTPH in capacity western Canada • Industry’s most extensive
Slide 10: Key Demand Drivers
KEY DEMAND DRIVERS Crop Production Volume Harvest Conditions Storage Practices Infrastructure Gap www.aggrowth.com 10
Slide 11: Global Demand for AGI Product
GLOBAL DEMAND FOR AGI PRODUCT Increasing production Infrastructure gap Post harvest losses Food security issues Increased protein consumption EXPORT DESTINATION FARM ELEVATOR PROCESSOR PORT PORT www.aggrowth.com 11
Slide 12: Turnkey Solutions
TURNKEY SOLUTIONS Dunmore, Alberta Voronezh, Russia Narrabri, Australia Lipetsk, Russia www.aggrowth.com 12
Slide 13: International
INTERNATIONAL 2013 Sales by Geography RUK 61% Canada Central & Western Europe 27% U.S. IMEA 2% Asia Pacific 7% Latin America 21% 3% 26% 53% United States Canada International *RUK = Russia/Ukraine/Kazakhstan IMEA = India/Middle East/Africa www.aggrowth.com 13
Slide 14: International Strategy
INTERNATIONAL STRATEGY • Target large domestic corporate farms and multinational grain traders • Well capitalized • Multi-year CAPEX spends • EDC insured • Bundled sales, leveraging catalogue • Repeat business confirms sustainability www.aggrowth.com 14
Slide 15: Creative Site - Ukraine
CREATIVE SITE - UKRAINE www.aggrowth.com 15
Slide 16: Constanta Site - Romania
CONSTANTA SITE - ROMANIA www.aggrowth.com 16
Slide 17: Latin America – Gaining Traction
LATIN AMERICA – GAINING TRACTION • Significant infrastructure opportunity • Tariff free (ex-Brazil) – compete effectively from North America • AGI dedicated personnel – 2012 • Awarded five major projects in 2014 totalling approx. $20 million www.aggrowth.com 17
Slide 18: Brazil Opportunity
BRAZIL OPPORTUNITY • Less than 15% on farm storage capacity • Historical lack of investment in infrastructure • Lack of rail or inland waterway options • Road transport costs significantly higher than ROW • Antiquated, inefficient port facilities • AGI plans organic entry into market www.aggrowth.co
Slide 19: North American On-Farm
NORTH AMERICAN ON-FARM • Record crop production in 2013 • 2014 outlook rivals 2013 record • Lower commodity prices encourages on-farm storage and use of handling equipment • Logistical challenges post-harvest 2013 resulted in higher carryover of crop on-farm • Dealer pre-season portable handling equ
Slide 20: Western Canada On-Farm
WESTERN CANADA ON-FARM • Challenges with grain logistics 2013- 2014 • Dissolution of CWB monopoly • 2014 wet conditions – 2M acres unseeded, 2M acres damaged • Back to back large crops • Strong performance by all W/Canada distributors across all product lines • Successful spring launch of new Storm
Slide 21: Adjusted EBITDA
ADJUSTED EBITDA First Half 2014 Fiscal 2013 In C$ millions In C$ millions 40,000 80,000 $36,804 2nd Half 35,000 1st Half 30,000 60,000 25,000 $23,952 $37,952 20,000 40,000 $17,266 15,000 10,000 20,000 $32,226 $23,952 5,000 0 0 2013 2014 2012 2013 www.aggrowth.com 21
Slide 22: Financial Results & Outlook
FINANCIAL RESULTS & OUTLOOK AGI well positioned for 2014: • Strong market dynamics in core North American market • Dominant market share in North American portable grain handling • Continued investment in commercial grain handling infrastructure both domestically and overseas • Expanding global foot
Slide 23: Management
MANAGEMENT GARY ANDERSON • Co-founded AGI in 1996 President & CEO • Strategic development, growth strategy & execution STEVE SOMMERFELD • CFO of AGI since inception Executive Vice President • Growth financing for 12 acquisitions & CFO PAUL FRANZMANN • Joined AGI in 2005 as Director of Corporate Deve
Slide 24: Board of Directors
BOARD OF DIRECTORS BILL LAMBERT JANET GIESSELMAN Board Chairman Governance Committee Chairman GARY ANDERSON BILL MASLECHKO CEO & Director Director MAC MOORE DAVID WHITE CA, ICD.D, Director Audit Committee Chairman www.aggrowth.com 24
Slide 25: AG Growth Highlights
AG GROWTH HIGHLIGHTS Growth driven by robust global agricultural fundamentals Leading product catalogue – Farm & Commercial Industry leader in core North American markets Strong record of organic & acquisition growth Expanding international operations Attractive dividend yield www.aggrowth.com 25
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