American Vanguard Corporation · NYSE:AVD
American Vanguard — Investor Presentation (March 2017)
26 slides from American Vanguard's investor presentation, March 2017
Slide 1: American Vanguard
American Vanguard Providing the Means to Safe, Efficient & Abundant Agriculture Worldwide March 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains, in addition to historical information, forward-looking statements. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those d
Slide 3: AMVAC Overview
AMVAC Overview ► Founded in 1969; Traded on NYSE (390 employees) ► Fully integrated company operation, excluding basic R&D ► Business Model: Develop, manufacture and market a diverse group of specialty and agricultural products ► Mission: Enhance agricultural productivity and safeguard public health
Slide 4: Proven Acquisition & Licensing Experience
Proven Acquisition & Licensing Experience Phosdrin Mocap SmartBox Ambush 25WP Thimet E-Z Load Hyvar Mevinphos Nemacur (DuPont) System Permethrin Phorate System (DuPont) (BASF) (UAP) Aztec (bag) 1989 (Dupont) (Syngenta) 2015 2005 2007 (Bayer) 2000 2002 Bidrin 2010 Dicrotophos Fortress Deadline Impact
Slide 5: Diversified Crop Participation
Diversified Crop Participation 3% 4% 2016 6% $312 Million 26% 7% Fruit & Veg Potatoes Corn specialty 11% Cotton Sugar Crops Peanuts Other 22% 21% 5 5
Slide 6: AMVAC United States Manufacturing Sites
AMVAC United States Manufacturing Sites Los Angeles, CA Axis, AL Hannibal, MO Marsing, ID 6
Slide 7: Technology Innovation
Technology Innovation 7
Slide 8: Shareholder Equity Growth
Shareholder Equity Growth Shareholder Equity has doubled in the last decade $300 $250 $200 Millions $150 $100 $50 $- 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 8
Slide 9: Debt to Equity Ratio
Debt to Equity Ratio $300,000 2.5 $250,000 2.0 Shareholder's Equity ($K) $200,000 1.5 $150,000 1.0 $100,000 0.35 0.37 0.35 0.23 0.20 0.38 0.25 0.15 $50,000 0.5 $- 0.0 2009 2010 2011 2012 2013 2014 2015 2016 Shareholder's Equity Debt
Slide 10: SmartBox
SmartBox® The most advanced granule application system available Patented, closed-container transfer and application system for pesticides The sealed transfer-container is returnable and refillable. The on-planter base-container contains a locking valve system which enables contact-free product tran
Slide 11: MUCH Better Accuracy than Mechanical
MUCH Better Accuracy than Mechanical In-cab Monitor & Controls Records FIELD application rates, but is not integrated with current GPS systems nor does it create as-applied maps 11 11
Slide 12: Global Precision Farming Market
Global Precision Farming Market Double-digit Growth Forecast CAGR 16.14% USD $7,870 $3.2 Billion* USD Billion Market Size $4.799 USD $2.761 Billion Billion 2015 1 2020 1 2022 2 Sources: 1. “Precision Farming Market – Global Forecast to 2020”, MarketsandMarkets, Jan 2016 2. “Precision Farming Market
Slide 13: Smart Integrated Multi-Product Prescription Application System
Smart Integrated Multi-Product Prescription Application System RFID-tagged SmartCartridges™ One system for Insecticides, Fungicides, Nutritionals & Biologicals Application Accuracy (+/- 1%) at VERY Dry and/or Liquid LOW Rates Products 1st Commercial Applied units will apply Simultaneously Patented u
Slide 14: SIMPAS makes it EASY to Practice 4R's Stewardship
SIMPAS makes it EASY to Practice 4R’s Stewardship of Crop Protection Chemicals while Planting RIGHT PLACES @ RIGHT RATES RIGHT TIME RIGHT PRODUCTS SIMPAS Video Presentation *Other: Plant Growth Regulators, Biostimulants, Inoculants, Specialty Nutritionals, etc. 14
Slide 15: Click to Play Video
CLICK TO PLAY VIDEO
Slide 16: Market Opportunities
Market Opportunities Crops Geographies All row crops • US • Corn • Brazil/Argentina Large farms, • Sugarcane • China technology adaptors • Peanuts • Eastern Europe • Potatoes • UK, EU • Sugar beets • Canada Heavily regulated • Soybeans • Australia • Cotton Lack of Alternatives • etc. 16 16
Slide 17: Expansion Potential
Expansion Potential Today: Intermediate Term: SIMPAS 1.0 SIMPAS 2.0 6 Targeted Crops, Additional USA Crops USA-only & ex-USA Regions Corn, Cotton, Soybeans Brazil, Argentina, Canada, China Peanuts, Potatoes, Sugar Beets Australia, EU, India USA Opportunity & Only 6 Crops Global Opportunity & More Cr
Slide 18: AMVAC Global Operations
AMVAC Global Operations AMVAC AMVAC Canada Office Sales Office Netherlands BV* Ukraine Huifeng AMVAC AMVAC AMVAC Global HQ Sales Office Innovation Co., France Ltd Joint Quimica AMVAC Venture de Mexico* AMVAC Singapore Pte Ltd* AMVAC de Costa Rica* AMVAC do Brasil Representações LTDA* *Subsidiaries 1
Slide 19: HuiFeng AMVAC Innovation Company, Ltd
HuiFeng AMVAC Innovation Company, Ltd • Objective: Facilitate technology and market access • Platform for Collaboration: ➢ Technology development ➢ Securing product registrations ➢ Co-marketing of each partner’s crop protection products and equipment systems ➢ Funding product acquisition/licensing o
Slide 20: HuiFeng AgroChemical
HuiFeng AgroChemical Manufacturing & Technical Capability
Slide 21: Seven Distribution Centers
Seven Distribution Centers 280 Sales and Technical Persons Service 1800 Distributor & Retailer 21
Slide 22: Biological Innovation and Global Market Access Model
Biological Innovation and Global Market Access Model Technology Government Providers Potential Funding Licenses i.e. FEM i.e. EU Grant Screening Trichoderma Business/Technical Opp Registration in EU for Regulatory Vine, Vegetable, Fruits Development Trials Americas EU M.E. AMVAC Asia (TBD) Belchim U
Slide 23: AMVAC Innovation Pipeline
AMVAC Innovation Pipeline 140 Net Sales 120 GM 100 NPV $M 80 60 40 Stage 5 Near-term Stage 1 Longer-term 20 0 1 2 3 4 5 Stage 23 23
Slide 24: AMVAC Technology Development Investments
AMVAC Technology Development Investments ► Product Innovation • 43 internal projects in progress; First commercialization 2019; Revenue Potential >$200MM • Product Development Alliances; 2 underway in China ► Joint Venture Entities • Hong Kong based JV with Huifeng, market & technology access in Asi
Slide 25: Pillars of AMVAC's Growth
Pillars of AMVAC’s Growth Asia/Pacific Hong Kong Hyvar & Krovar Joint Venture Acquisitions TyraTech / Envance BiPA Biologicals Partnerships Strategic Alliances “Key” to our Growth Organic Licensing Growth Technology Fruits & Scepter Precision Vegetables Application SIMPAS 25
Slide 26: AMVAC Strategic Initiatives
AMVAC Strategic Initiatives ► Product Portfolio Expansion Acquisition; licensing; internal development; partnership/collaborations ► Increasing Market Access Domestic programs; international alliances ► Technology Innovation Chemical products; biological products; precision-ag equipment systems ► Or
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