Ag Growth International Inc. · TSX:AFN
Ag Growth International — TD Securities Small Cap Conference 2012
32 slides from Ag Growth International's conference presentation, Oct 25, 2012
Slide 1: A Commitment to Growing
A COMMITMENT TO GROWING HANDLING I STORING I CONDITIONING I SOLUTIONS www.aggrowth.com
Slide 2: TD Securities Small Cap Conference
TD Securities Small Cap Conference October 25, 2012 www.aggrowth.com
Slide 3: 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 4: Focus Solely on Agriculture
Ag Growth International Focus Solely On Agriculture • Dominant market position in grain handling • Market leader in grain conditioning • Recent expansion of grain storage capabilities 4 www.aggrowth.com
Slide 5: Service Most Agricultural Markets
Ag Growth International Service Most Agricultural Markets Destination Farm Elevator Export Port Processor Port 5 www.aggrowth.com
Slide 6: Increasing global diversification
Ag Growth International Increasing global diversification United States 61% United States 70% Canada 18% Canada 21% 25% 5% International International 2003 Sales (Pre- IPO) 2011 Sales 6 www.aggrowth.com
Slide 7: Manufacturing facilities in Canada & USA
Ag Growth International Производственные предприятия AGI /Manufacturing facilities AGI Canada & USA ГЛАВНЫИ ОФИС КОМПАНИИ НАХОДИТСЯ В Г. ВИННИПЕГ, КАНАДА / HEADOFFICE IS LOCATED IN WINNIPEG, CANADA 7 www.aggrowth.com
Slide 8: Manufacturing facilities in Europe
Ag Growth International Производственные предприятия AGI в Европе 8 www.aggrowth.com
Slide 9: Business Lines
Ag Growth International Business Lines Storage and conditioning Commercial grain On-farm grain handling handling 9 www.aggrowth.com
Slide 10: Portable Grain Handling
Portable Grain Handling 10 www.aggrowth.com
Slide 11: Portable Grain Handling: Product Catalogue and Market Characteristics
Portable Grain Handling Product Catalogue • Most extensive product offering in the industry Market Characteristics • Applications - primarily during seeding and harvest • Low price point - price range $10k to $20k • Life cycle of grain auger is typically three to five years 11 www.aggrowth.com
Slide 12: Portable Grain Handling: Distribution
Portable Grain Handling Distribution Multiple channels / Double branding 12 www.aggrowth.com
Slide 13: Portable Grain Handling: Competitive Landscape
Portable Grain Handling Competitive Landscape • Approximately 20 competitors • Most are small regional players • Five have North American distribution • AGI brands are dominant with approximately 40% market share (larger than next three competitors combined) 13 www.aggrowth.com
Slide 14: Portable Grain Handling: Critical Success Factors
Portable Grain Handling Critical Success factors • Dedicated production facilities • Vertical integration – low cost producer status • Dominant dealer network • Extensive warehousing system • New product development and voice of customer 14 www.aggrowth.com
Slide 15: Commercial Grain Handling
Commercial Grain Handling 15 www.aggrowth.com
Slide 16: Commercial Handling Equipment
Commercial Handling Equipment Product Catalogue • 17 categories of specialization from 100 MT/Hour to 4,600 MT/Hour Market Characteristics • Applications include commercial farms, regional handling facilities, river ports and ports • Price range of $80-$100k for single units, $0.5 million to $1.5 mi
Slide 17: Commercial Handling Equipment: Distribution
Commercial Handling Equipment Distribution Contractors/End Users 17 www.aggrowth.com
Slide 18: Commercial Handling Equipment: Competitive Landscape
Commercial Handling Equipment Competitive Landscape • Major U.S. bin companies • Independents - global and regional North American companies • AGI dominant in highest capacity categories with Hi Roller and Tramco 18 www.aggrowth.com
Slide 19: Commercial Handling Equipment: Critical Success Factors
Commercial Handling Equipment Critical Success Factors • Dedicated production facilities • Highest capacities in the industry • Strategic relationships with ABCD’s • Commitment to customer 19 www.aggrowth.com
Slide 20: Storage and Conditioning
Storage and Conditioning 20 www.aggrowth.com
Slide 21: Storage & Conditioning: Product Catalogue
Storage & Conditioning Product Catalogue • Extensive aeration line across all categories • Mobile and stationary dryers and recent entry into commercial dryer market through R&D • Recent expansion of storage capabilities – storage bins up to 105’ in diameter 21 www.aggrowth.com
Slide 22: Storage & Conditioning: Market Characteristics
Storage & Conditioning Market Characteristics • Applications include small farms, commercial farms and commercial grain traders • Price range of 5k to 300k for storage bins, $30k to $500k for dryers and $1k to $100k for aeration Life Cycle • Storage bins – 30 years + • Aeration – 20 years + • Dryers
Slide 23: Storage & Conditioning: Distribution and Competition
Storage & Conditioning Distribution • Farm duty equipment sold through distribution network • Commercial equipment sold through dealer network and direct to contractor or end user Competitive Landscape • Large US storage players have broad catalogues and dominant US distribution • Westeel has narrow
Slide 24: Storage & Conditioning: Competitive Landscape cont'd
Storage & Conditioning Competitive Landscape cont’d • Over 30 global manufacturers, most are regional and have narrow product offerings • AGI dominant in aeration in Western Canada, growing presence in storage in international markets Critical Success Factors • Dedicated production facilities - bins
Slide 25: International Growth
International Growth 25 www.aggrowth.com
Slide 26: International Growth: 2011 Sales
International Growth 2011 Sales United States 61% International Canada 21% 18% 26 www.aggrowth.com
Slide 27: International Growth: Regional Sales Mix
International Growth Mid East/Africa South East Asia Latin America 3% Rest of World 7% 7% 18% United States 10% Int’l Canada 55% Australia/New Zealand FSU 27 www.aggrowth.com
Slide 28: Global Opportunity
Global Opportunity Emerging markets with greatest opportunity • High potential for grain production increases • Need to reduce post harvest losses • Storage and transport infrastructure gap 28 www.aggrowth.com
Slide 29: International Sales Team
International Sales Team Winnipeg Group • Multilingual sales, engineering, logistics and technical support • Services most FSU accounts, Asia, Africa and Middle East Latvia • Sales and support for Baltic Region and certain FSU accounts South America • Sales offices in Colombia and Argentina 29 www.a
Slide 30: Former Soviet Union (FSU)
Former Soviet Union (FSU) Sales to FSU • First area of focus for newly formed $30,000,000 international group in $25,000,000 2008 $20,000,000 • Growing market $15,000,000 presence and brand $10,000,000 recognition $5,000,000 • Increasing repeat $0 business 2011 2012 E 30 www.aggrowth.com
Slide 31: Summary – AGI formula
Summary – AGI formula 1. Leverage North American business • Specialized expertise – dedicated plants • Dominant market position in grain handling • Stable base of business 2. Geographic diversification – emerging markets 3. Growing “share of wallet” by offering a complete solution for storage, condi
Slide 32: Thank You
WO NOT ; s = REPRE taddennntee : AGI = www.aggrowth.com ‘AG GROWTH INTERNATIONAL
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