Ag Growth International Inc. · TSX:AFN
Ag Growth International — Investor Presentation (September 2012)
18 slides from Ag Growth International's investor presentation, September 2012
Slide 1: A Commitment to Growing
A COMMITMENT TO GROWING HANDLING I STORING I CONDITIONING I SOLUTIONS 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: AGI snapshot
AGI snapshot (($000’s) IPO LTM YE 2003 June 2012 Trade Sales 58,206 320,136 Adjusted EBITDA 18,470 55,635 International sales 5% 19% Dividend per share $1.30 $2.40 Employees 247 1,434 Divisions 3 10 Dividend yield (1) 13% 7% Market capitalization (1) 69,040 423,929 (1)As at September 12, 2012 3 www.
Slide 4: AGI company overview
AGI company overview Focused solely on agriculture • We are a leading manufacturer of grain handling, storage and conditioning products Our products service most agricultural markets • Individual farmer • Elevator and port facilities • Processor Global distribution • U.S. corn-belt a significant geo
Slide 5: AGI market sectors
AGI market sectors On-Farm Elevators/Inland Terminals Processing Port Facilities 5 www.aggrowth.com
Slide 6: AGI macroeconomic business drivers
AGI macroeconomic business drivers Primary – Grain Volume • Higher on-farm production equates to increased demand for our portable grain handling, conditioning and storage equipment • High crop volumes putting pressure on grain traders to expand capacity • Emerging cropping regions and the shift to
Slide 7: AGI growth strategy
AGI growth strategy 1. Focused catalogue expansion to create a one stop shop environment with the top brands to maximize our “share-of-wallet” with our customer base. 2. Manufacturing investment to support geographic and catalogue expansions 3. Lever the catalogue into new and expanding geographies
Slide 8: AGI Geographic Expansion
AGI Geographic Expansion AGI= www.aggrowth.com ‘AG GROWTH INTERNATIONAL
Slide 9: AGI International growth strategy
AGI International growth strategy • Target high potential emerging markets • Offer customers complete manufactured solutions • Create sustainable business model specific to the region • Speak their language • Appeal to buyers at all points in the chain Destination Farm Elevator Export Port Processor
Slide 10: Emerging markets with the greatest opportunity
Emerging markets with the greatest opportunity • High potential for grain production increases • Need to reduce post harvest losses • Storage and transport infrastructure gap 10 www.aggrowth.com
Slide 11: 2012 indicative activity by export region
2012 indicative activity by export region CIS 38% M.E. + Africa 5% S.E. Asia Latin America 12% 22% * Includes only Winnipeg and Riga based sales teams. 11 www.aggrowth.com
Slide 12: Case study: Russia opportunity
Case study: Russia opportunity 1. High potential for production increases • Attainable yield increases of 52% by 2021* • 27.4M hectares abandoned between 1990 and 2009, available to be reclaimed 27.4M hectares represents 75% of the total cropped hectares in Canada (36M Ha). *Source: OECD-FAO Agricul
Slide 13: Case study: Russia opportunity
Case study: Russia opportunity 2. Need to reduce post harvest losses • At least 15% of Russia crop lost between the field and the market • Spoilage due to inadequate / defective storage • North American benchmark is 2% loss post harvest 13 www.aggrowth.com
Slide 14: Case study: Russia opportunity
Case study: Russia opportunity 3. Infrastructure gap • Current recorded Russian storage capacity is 95MMT* • More than 70% is obsolete • Soviet system designed for intake of grain and processing at point of consumption, not export *Source: APK Inform 14 www.aggrowth.com
Slide 15: Russia market potential - storage
Russia market potential - storage 105MMT storage market •135MMT production capacity as yields increase, abandoned hectares come back on line and post harvest losses decrease •40MMT shortfall from current “official” storage capacity •65MMT of obsolete storage to be replaced $3B USD opportunity for st
Slide 16: Russia market potential – handling
Russia market potential – handling $3B USD opportunity for storage sales plus $4B USD for better margin handling & conditioning equipment sales •Projects require permanent handling equipment for intake, processing and offloading of grain •Higher capacities and better quality of North American equipm
Slide 17: Conclusion – AGI formula
Conclusion – AGI formula 1. Leverage North American business • Specialized expertise – dedicated plants • Stable base of business 2. Geographic diversification – emerging markets 3. Growing “share of wallet” by offering a complete solution for storage, conditioning and handling 4. Handling equipment
Slide 18: Thank You
WO NOT ; s = REPRE taddennntee : AGI = www.aggrowth.com ‘AG GROWTH INTERNATIONAL
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