American Vanguard Corporation · NYSE:AVD
American Vanguard — Investor Presentation (May 2013)
16 slides from American Vanguard's investor presentation, May 2013
Slide 1: American Vanguard Corporation – AMVAC Overview
American Vanguard Corporation Providing the Means to Safe, Efficient and Abundant Agriculture Worldwide May, 2013 AMVAC Overview ► Founded in 1969 ► Originally a regional contract manufacturer ► Public company traded on NYSE ► 500 employees ► 2012 Revenue: $366 million ► 2012 Net Income: $37 million
Slide 2: AMVAC's Evolution; Three Elements of Growth
AMVAC’s Evolution ► Fully integrated company operation, excluding basic R&D ► Focusing on growth through: Acquiring/licensing branded niche products Reinventing core products by identifying new opportunities Licensing new, development active ingredients and product technologies ► Strengthening
Slide 3: Proven Track Record of Acquisitions; Diverse Product Portfolio
Proven Track Record of Acquisitions and Licenses Dibrom Axis Deadline Counter Terraclor Mocap Naled (US) Plant Metaldehyde Terbufos PCNB Nemacur (Valent) (DuPont) (Pace) (BASF) (Chemtura) Aztec (bag) 1998 2001 2003 2006 2007 (Bayer) Vapam 2010 Metam Sodium Smartbox Thimet Evital E-Z Load Def (Zeneca
Slide 4: Diversified Crop Participation; AG Industry – Driving Forces
Diversified Crop Participation Other Sugar Beets/Cane Pharmaceuticals Toll Manufacuring 2012 Sales (%) 4% 3% Peanuts 4% Corn Fruit 30% 6% Specialty 9% Cotton 13% Vegetables 15% Potatoes 7 15% AG Industry – Driving Forces ► Global Population . . . 7 Billion and Growing ► Preference for Concentrated P
Slide 5: Major Opportunity – U.S. Corn; The Problem
Major Opportunity – U.S. Corn ► Strong Demand - 2 Major Challenges Glyphosate Resistant Weeds Root Nibbling Soil Insects ► AMVAC Solutions IMPACT® Herbicide – Monsanto Co-promotion Corn Soil Insecticide – SmartBox® Application RESULT: Yield Enhancement Solutions 9 The Problem Glyphosate Resi
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Slide 7: Granular Soil Insecticides; Closed Delivery Systems
Granular Soil Insecticides AZTEC® 2.1% Terbufos (AMVAC) Tebupirimphos + Chlorethoxyfos + cyfluthrin (Bayer) Bifenthrin (AMVAC) The Simple, Safe, Superior choices for granular products MOCAP® NEMACUR® Ethoprophos Fenamiphos THIMET® 20G Tefluthrin (Syngenta) Phorate (AMVAC) 13 Amvac’s Closed Delivery
Slide 8: SmartBlock Quality Control All Season Long
Quality Control All Season Long 15 Efficacy of SmartBlock™ on Potatoes Untreated SmartBlock™ (1 application) SmartBlock™ Safe, food-grade additive Superior sprout control Easy “drop-in” replacement CIPC (3 applications) 16 8
Slide 9: A True Solution for Bug Deterrence
A True Solution for Bug Deterence ► Long-lasting bug deterrence solution ► Begins working immediately ► Effective against all types of insects Photo: R. Pospischil 17 18 9
Slide 10: Made in America; Made with Pride
Made in America Los Angeles, CA Axis, AL Hannibal, MO Marsing, ID 19 Made with Pride ► Strong Environmental and Safety Compliance ► Relevance of US Production Reliable Supply High Quality Assurance Customer Responsiveness MADE WITH PRIDE Creating Jobs IN THE USA 20 10
Slide 11: Comparative Peer Results; Income Statement 2011-2012
Comparative Peer Results Ag Chemical Revenues (excluding seed) 2011 2012 1Q2013 AMVAC 34 % 22 % 39 % FMC 18 % 20 % 9 % DOW 16 % 13 % 14 % DuPont 16 % 9 % 14 % Syngenta 15 % 7 % 9 % Monsanto* 13 % 16 % 107 % Bayer 10 % 7 % 10 % BASF 8% 4 % 17 % Chemtura 7% 9 % 4 % *Reporting year is Oct 1 – Sept 30 S
Slide 12: Income Statement Q1'12 vs. Q1'13; Improved Debt Performance
Income Statement Q1’12 vs. Q1’13 ($ Thousands) Q1 2013 Q1 2012 Change % Change Net sales 121,537 87,255 34,282 39% Gross margin 53,781 37,378 16,403 44% Gross margin % 44% 43% SG&A 27,532 22,976 4,556 20% SG&A to net sales 23% 26% Operating income 26,249 14,402 11,847 82% Interest 353 699 (346) -49%
Slide 13: Stockholder Equity Growth; Growth Themes
Stockholder Equity Growth 20% Increase Realized in 2012 7% Increase in 1Q’13 300 250 Millions $ 200 150 100 50 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1 25 Growth Themes ► Integrated Pest Management - Genetic + Chemical ► “Best-Practice” Standard
Slide 14: International Operations; Board of Directors
International Operations Canada Office AMVAC Chemical UK Ltd. AMVAC Switzerland GmbH France Office Subsidiary Subsidiary Quimica AMVAC de Mexico Subsidiary AMVAC de Costa Rica Subsidiary AMVAC do Brasil AMVAC Netherland BV Representacoes Subsidiary LTDA Subsidiary GROWTH: 2011 : 62% above 2010 2012
Slide 15: Sustainable Success
American Vanguard Board of Directors 29 SUSTAINABLE SUCCESS Increasing Industry Demand for our Products Manufacturing Capability to Meet that Demand 250 200 Solid Financial Performance 150 100 50 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD Organic Growth Con
Slide 16: Analyst Ratings & Consensus (May 6, 2013)
Analyst Ratings & Consensus (May 6, 2013) Target Analyst Rating Price Piper Jaffray OVERWEIGHT $36.00 Feltl STRONG $38.50 Sidoti BUY $39.00 Topeka BUY $36.00 Gabelli BUY $38.00 Revenue in Target 2Q13 3Q13 4Q13 2013 2014 Millions Price $107.20 $103.00 $125.00 $454.80 $523.50 $37.50 Consensus $0.43 $0