Ag Growth International Inc. · TSX:AFN
Ag Growth International — Investor Presentation (January 2018)
24 slides from Ag Growth International's investor presentation, January 2018
Slide 1: Investor Presentation
INVESTOR PRESENTATION January 2018 1
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 Overview
AGI OVERVIEW The AGI Leading Financial Our Growth Innovation Advantage Brands & Strength Strategy & Future Operations #1 • System Solutions • 33 market- • $900M+ • Field to Consumer • Positive market leading brands market cap outlook • Platform • Diversification perspective • $700M+ • Leverage new •
Slide 4: The AGI Advantage
THE AGI ADVANTAGE 4
Slide 5: Systems Solutions from Farm to Consumer
SYSTEMS SOLUTIONS FROM FARM TO CONSUMER 5
Slide 6: Global Platform
GLOBAL PLATFORM AG/I= . AGH RUSSIA : rnamcon 7 AGL UKRAINE erm FRAMED EBB 2018 acauisirions acisrasi= BB 2017 acoursimions . mrss Ey 201s acouismions BBB anuracturine raciury
Slide 7: Farm and Commercial Divisions
FARM AND COMMERCIAL DIVISIONS 7
Slide 8: Financial Strength
‘nancial FINANCIAL STRENGTH
Slide 9: Annual Trade Sales and EBITDA
ANNUAL TRADE SALES AND EBITDA $600 $500 $400 ANNUAL $300 $547 $583 TRADE SALES $438 (In C$ Millions) $200 $410 $358 $100 $0 2013 2014 2015 2016 YTD to Q3 '17 $120 $100 $80 $60 ANNUAL $100 $102 ADJUSTED EBITDA $40 $78 $73 (In C$ Millions) $64 $20 $0 2013 2014 2015 2016 YTD to Q3 '17 9
Slide 10: Year-to-Date Trade Sales and EBITDA
YEAR-TO-DATE TRADE SALES AND EBITDA $600 $500 $400 YTD (to Q3) $300 $583 TRADE SALES $200 $420 (In C$ Millions) $317 $324 $270 $100 $0 2013 2014 2015 2016 2017 $120 $100 $80 $60 YTD (to Q3) $102 ADJUSTED EBITDA $40 $65 $82 (In C$ Millions) $60 $20 $50 $0 2013 2014 2015 2016 2017 10
Slide 11: International Commercial
INTERNATIONAL COMMERCIAL $120 $112 $100 • International Sales (ex-acquisitions) were $92 $22 soft in 2016, primarily due to delays in large $80 $72 $78 $67 commercial grain storage and handling projects $60 $55 $40 $85 • Activity in this area has improved in 2017, $20 $35 and is expected to be a dri
Slide 12: Payout Ratio
PAYOUT RATIO 100% 90% 80% • Dividend $2.40 per annum 69% 70% 54% 60% (1) • Current yield ~ 4% (1) 50% 40% 30% • Senior Debt to EBITDA, net of cash = 1.8x 52% 50% 20% 10% • Total Debt to EBITDA, net of cash = 4.1x 0% LTM Sept 30 2016 LTM Sept 30 2017 Payout Ratio Excluding Realized Loss on FX (1) Rea
Slide 13: Growth Strategy
GROWTH STRATEGY 13
Slide 14: Field to Consumer Strategy
FIELD TO CONSUMER STRATEGY 14
Slide 15: Demand Drivers
DEMAND DRIVERS FOOD PROCESSING FEED GRAIN VOLUME WEATHER COMMODITY SEED PRICES FERTILIZER FARM GLOBAL COMMERCIAL INFRASTRUCTURE GEOGRAPHY 15
Slide 16: U.S. On-Farm Storage Capacity vs. Total Production
U.S. ON-FARM STORAGE CAPACITY vs. TOTAL PRODUCTION 14,000 90% 80% 13,500 70% 13,000 60% 12,500 50% 12,000 40% 11,500 30% 11,000 20% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 On-Farm Capacity On-Farm Capacity / Production Source: USDA, million bushels 16
Slide 17: Corn Acres in Western Canada
CORN ACRES IN WESTERN CANADA 600,000 500,000 400,000 300,000 200,000 100,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: StatsCan, acres 17
Slide 18: Recent Acquisitions
RECENT ACQUISITIONS CMC Industrial Electronics Junge Control Inc. • Founded in 1997 • Founded in 1979 • Office and manufacturing facility in Burnaby, BC, and sales • Based in Cedar Rapids, IA office in Minneapolis, MN • Supplier of precision blending and measurement systems • Supplier of hazard moni
Slide 19: Brazil Snapshot
BRAZIL SNAPSHOT 09: of US Corn Production 95% ofUS Soybean Production 150+ Employee ml SS
Slide 20: AGI Brazil Status
AGI BRAZIL STATUS ü Construction Complete ü Technology Transfer Underway ü Capable of Producing All AGI Commercial & Farm Products ü Investment in Sales Team ü Brazilian Economy and Ag Sector Improving ü Backlogs Reflect Increasing Farmer Spending 20
Slide 21: Summary
AGI= > ac <= = = 2 7a)
Slide 22: Market Outlook
MARKET OUTLOOK Canadian Farm Market U.S. Farm Market Crop Volumes Outlook: Robust Outlook: Improving Outlook: Long Term Farm Market Growth RECOVERING North American Commercial Business International Commercial Business Outlook: Stable Outlook: Strengthening 22
Slide 23: Growth Drivers
GROWTH DRIVERS Global Grain & Fertilizer Infrastructure Investment in Brazil Continued Consolidation 7. ull 14
Slide 24: System Solutions from Farm to Consumer
System Solutions from Farm to Consumer 24
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