Ag Growth International Inc. · TSX:AFN
Ag Growth International — Shareholder Meeting (2016)
23 slides from Ag Growth International's shareholder meeting presentation, Dec 22, 2016
Slide 1: Committed to Growth
tu o z = = > o o o <= ° i= a uw = Ss = = ° o COMMITTED TO GROWTH
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: Farm and Commercial segments
FARM Geographic Scope: North America Distribution: Farm Equipment Dealers Standardized Product Portfolio Key Demand Drivers: Crop Volume & Replacement Cycle WESTFIELD™ WWEATHEART® WESTEEL® SATCOF REM GRAINGUAND® TWISTER® ENTHINGER® 2 COMMERCIAL Geographic Scope: Global Distribution: Direct to Custom
Slide 4: Sales Composition
SALES COMPOSITION 2010 2015 2016 Q1 32% 46% 46% 46% 42% 46% 68% 54% 54% 58% 54% 54% Farm Farm Farm Farm Farm Westeel Farm Westeel Westeel Westeel Westeel Commercial Commercial Commercial Commercial Commercial Commercial 3
Slide 5: Financial Overview
FINANCIAL OVERVIEW
Slide 6: Q1 Trade Sales and Q1 Adjusted EBITDA
120.0 113.7 100.0 38.1 80.0 Q1 TRADE SALES 60.0 (In C$ Millions) 86.6 40.0 78.5 75.6 65.5 53.4 20.0 0.0 2012 2013 2014 2015 2016 Acquisitions 25.0 19.8 20.0 6.5 15.0 Q1 ADJUSTED EBITDA 10.0 17.3 (In C$ Millions) 14.0 13.3 12.2 5.0 7.5 0.0 2012 2013 2014 2015 2016 Acquisitions 5
Slide 7: Outlook 2016 Farm
OUTLOOK 2016 FARM
Slide 8: U.S. Corn and Soybean Planting Intentions and Production
200000 180000 77198 83701 82236 160000 77451 77404 74976 76533 82650 75718 76895 67140 140000 120000 U.S. CORN AND SOYBEAN 100000 PLANTING INTENTIONS 80000 60000 (In ‘000 acres) 90454 91936 97155 95365 90597 93601 88192 87999 40000 78019 85982 86482 20000 0 2006 2007 2008 2009 2010 2011 2012 2013 20
Slide 9: Canadian Pulse Crop Seeded Acres and Lentil Price
10,000 9,000 8,000 7,000 4,280 6,000 CANADIAN PULSE CROP 5,000 3,985 3,680 3,730 3,325 SEEDED ACRES 4,000 3,000 (In mm acres) 5,140 2,000 3,950 2,720 3,120 1,000 2,515 0 2012 2013 2014 2015 2016F Lentils Dry Peas Source: Producer.com 50 45 40 LENTIL PRICE 35 (2013-2016 in USD) 30 25 20 15 Source: Bl
Slide 10: Outlook 2016 Commercial
OUTLOOK 2016 COMMERCIAL
Slide 11: International Sales by Region
INTERNATIONAL SALES BY REGION 10
Slide 12: Recent Initiatives - Fertilizer
RECENT INITIATIVES - FERTILIZER
Slide 13: Canadian Fertilizer Consumption
CANADIAN FERTILIZER CONSUMPTION CAGR: 1.7% 80.00 74.40 kg/ha 70.00 7.60 60.00 58.90 kg/ha 15.80 7.70 50.00 15.00 40.00 30.00 51.00 20.00 36.20 10.00 0.00 2000 2014 Nitrogen Phosphate Potash Source: FAO-UN 12
Slide 14: Westeel Commercial Smoothwall
WESTEEL COMMERCIAL SMOOTHWALL 1615 Quad Batch Bin 1620 Quad Batch Bin 1620 Fertilizer Bin 13
Slide 15: Follow-on Acquisition - VIS
FOLLOW-ON ACQUISITION - VIS § Acquisition of VIS in November 2015 - positions AGI as a significant player in the fertilizer handling, storage and distribution market in Western Canada § Significant synergies by bundling Westeel Smoothwall bins with commercial fertilizer distribution equipment § Comp
Slide 16: Follow-on Acquisition - Nuvision
FOLLOW-ON ACQUISITION - NUVISION § Western Canadian leader in design and construction of fertilizer sites § Allows AGI to offer turnkey design, manufacturing, assembly and installation of fertilizer distribution facilities § Focus on small to medium sized retail fertilizer distribution § Provides a
Slide 17: AGI Fertilizer Platform
AGI FERTILIZER PLATFORM § Kacey making image 16
Slide 18: Recent Initiatives - Brazil
, / ers ng ee a) > Z} “a | es TIVES - BRAZIL RECENT INITI AGI= AG GROWTH INTERNATIONAL
Slide 19: Agriculture in Brazil
AGRICULTURE IN BRAZIL TOTAL GRAIN PRODUCTION (mm tons) 250 ESTIMATED MARKET SHARE* 194 202 200 189 166 3% 149 163 5% 150 144 132 135 3% 123 100 10% 50 GSI Entringer 0 Becker 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 CASP 16% ILLUSTRATIVE: SOYA PRODUCTION & LOGISTIC COST 60% Comil (
Slide 20: Entringer and AGI - 2016
ENTRINGER AND AGI - 2016 § Greenfield Plus § Small acquisition focused on product lines, which balances risk of entering new market § Enhance business of Entringer through access to AGI resources § Leverage Entringer product line, operations and engineering teams, distribution network, installation
Slide 21: Lean Manufacturing
LEAN MANUFACTURING
Slide 22: 476 Hours per Truckload
sae 476 HOURS PER TRUCKLOAD
Slide 23: Thank You
THANK YOU