Ag Growth International Inc. · TSX:AFN
Ag Growth International — Q4 2024 Earnings Presentation
30 slides from Ag Growth International's earnings presentation, March 2025
Slide 1: Earnings Call
EARNINGS CA PAUL / HOUSEHOLDER RUDYK L
Slide 2: CEO Commentary
AGI= CEO COMMENTARY
Slide 3: Topics for Today's Review
TOPICS FOR TODAY’S REVIEW FOURTH COMMERCIAL FARM OUTLOOK & SAFETY QUARTER SEGMENT SEGMENT GUIDANCE OVERVIEW UPDATE UPDATE 3
Slide 4: Safety Is a Top Priority
SAFETY ISA TOP PRIORITY ‘ v7 (o Ay y Ue ONE AGI= l ff ff fF fF fF ff fF f ff fF S fe Me fe ei
Slide 5: Q4 2024 Results
Q4 2024 RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN flat $379 $381 +123 bps 20.5% 19.3% +7% $73 $78 Q4/23 Q4/24 Q4/23 Q4/24 Q4/23 Q4/24 Adjusted EBITDA is a non-IFRS measure. Adjusted EBITDA Margin % is non-IFRS ratio. See "Non-IFRS and Other Financial Measures". Source: Com
Slide 6: Q4 2024 Themes
Q4 2024 THEMES • A record fourth quarter to close-out AGI’s second best year • International Commercial continues to meaningfully accelerate • Challenging N.A. Farm conditions persist, offsetting International Commercial growth • Focus on managing costs & operations delivering highly resilient & com
Slide 7: Q4 2024 Commercial Results
Q4 2024 COMMERCIAL RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN $248 +272bps 21.6% +30% 18.8% $190 +49% $53 $36 Q4/23 Q4/24 Q4/23 Q4/24 Q4/23 Q4/24 Adjusted EBITDA is a non-IFRS measure. Adjusted EBITDA Margin % is non-IFRS ratio. See "Non-IFRS and Other Financial Measures".
Slide 8: Strategic Focus on International Commercial
STRATEGIC FOCUS ON INTERNATIONAL COMMERCIAL • AGI’s largest addressable market, including high-growth international markets • Strategic focus on emerging markets, enabled by product transfers • Increased capabilities leading to several large projects in International Commercial • Significant strengt
Slide 9: Large Project Wins Enabled by Emerging Market Growth Strategy
LARGE PROJECT WINS ENABLED BY EMERGING MARKET GROWTH STRATEGY 15 $500M $34M Large-Scale Commercial Total Contract Value Average Contract Value Projects Won In International Regions In 2024 • Result of our emerging market growth strategy • Delivery of these projects establishes reference sites and en
Slide 10: Q4 2024 Farm Results
Q4 2024 FARM RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN $189 -29% -64 bps $134 24.7% 24.1% -31% $47 $32 Q4/23 Q4/24 Q4/23 Q4/24 Q4/23 Q4/24 Adjusted EBITDA is a non-IFRS measure. Adjusted EBITDA Margin % is non-IFRS ratio. See "Non-IFRS and Other Financial Measures". Revenu
Slide 11: Farm Market Commentary
FARM MARKET COMMENTARY • Challenging conditions in North American Farm persisting into 2025; low overall visibility • Adjustments made to preserve margin and minimize operating expenses • Farm order intake still slow in early 2025; possible catalysts: • Sustained rally in crop prices • In-season rep
Slide 12: Order Book
ORDER BOOK CAD, millions +4% $737 • Record-level order book $710 • Commercial +46% year-over-year • Commercial accounts for >80% of the total order book • International Commercial - several project wins • Diversified and resilient business model Q4/23 Q4/24 Order book Note: Order Book is a supplemen
Slide 13: Outlook
OUTLOOK Initial 2025 Outlook • Full-year 2025 Adjusted EBITDA of at least $225 million • First quarter 2025 Adjusted EBITDA of approximately $25 - $30 million • Note: outlook does not include the impact of any tariff or trade-related regulations Note: Adjusted EBITDA is a non-IFRS measure. See "Non-
Slide 14: Tariffs
TARIFFS • The outlook does not include the impact of any tariff or trade-related regulations • In 2025, we expect ~10% of total revenue from trade between the U.S. & Canada • Majority of this amount is concentrated on portable grain handling equipment • Main industry participants in portable grain h
Slide 15: CFO Commentary
AGI= CFO COMMENTARY
Slide 16: Topics for Today's Review
TOPICS FOR TODAY’S REVIEW FULL YEAR BALANCE CAPITAL CASH FLOW RESULTS SHEET ALLOCAITON 16
Slide 17: 2024 Results
2024 RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJUSTED EBITDA MARGIN $1,527 -8% $1,405 -10% $294 $265 -40 bps 19.3% 18.9% 2023 2024 2023 2024 2023 2024 Adjusted EBITDA is a non-IFRS measure. Adjusted EBITDA Margin % is non-IFRS ratio. See "Non-IFRS and Other Financial Measures". Source: Company
Slide 18: Balance Sheet Discipline
BALANCE SHEET DISCIPLINE • Committed to deleveraging Net Debt Leverage Ratio with significant improvement in recent years 7.0x 6.0x • Net debt leverage ratio may 5.0x expand towards ~3.5x in 4.0x 2025 given reduced Adjusted 3.0x 3.1x EBITDA and to support 2.0x Commercial segment growth 1.0x • Net de
Slide 19: Disciplined Working Capital Management
DISCIPLINED WORKING CAPITAL MANAGEMENT • Temporary ramp-up in inventory in H1/24 reflecting Working Capital Intensity heightened Commercial segment order book ahead of 30% H2/24 delivery 25% • Reduction in provisions 20% following large warranty claim resolution 15% 10% 11% • Increased working capit
Slide 20: Clear Focus on Driving Strong Free Cash Flow
CLEAR FOCUS ON DRIVING STRONG FREE CASH FLOW $111 $111 • On an LTM basis, FCF generation has stepped up to a new level of $88 performance over recent years $79 $73 $65 • Combination of expanding $50 $49 $50 margins, working capital focus, $34 $36 capex discipline $8 $9 $4 • Management aligned to dri
Slide 21: CEO Closing Remarks
PAUL VI HOUSEHOLDER RUDYK
Slide 22: Forward-Looking Information (1/3)
FORWARD-LOOKING INFORMATION (1/3) This webcast presentation contains forward-looking statements and information (collectively, "forward-looking information") within the meaning of applicable securities laws that reflect our expectations regarding the future growth, results of operations, performance
Slide 23: Forward-Looking Information (2/3)
FORWARD-LOOKING INFORMATION (2/3) Forward-looking information involves significant risks and uncertainties. A number of factors could cause actual results to differ materially from results discussed in the forward-looking information, including: the risk that (i) negotiations between the U.S. and Ca
Slide 24: Forward-Looking Information (3/3)
FORWARD-LOOKING INFORMATION (3/3) These and other risks and uncertainties are described under "Risks and Uncertainties" in our most recently filed interim and annual MD&A and in our most recently filed Annual Information Form, all of which are available under the Company's profile on SEDAR+ [www.sed
Slide 25: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION PRESENTATION OF FINANCIAL INFORMATION All financial information of AGI included in this presentation is reported in Canadian dollars and (except for forward-looking financial information) has been derived from audited and unaudited historical financial statement
Slide 26: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization) is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is profit (loss) before incom
Slide 27: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION Adjusted EBITDA – Farm Segment - The following table reconciles profit (loss) before income Adjusted EBITDA – Commercial Segment - The following table reconciles profit (loss) before taxes to Adjusted EBITDA for the Farm segment for each of the periods presented
Slide 28: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION Adjusted EBITDA Margin % is a non-IFRS ratio and is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA margin % is a non-IFRS ratio because one of its components, Adjusted EBITDA, is a non- IFRS financial measure. Management believes Adjusted EBITDA
Slide 29: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION Net Working Capital is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is Total Current Assets. Net Working Capital is defined as Total Current Assets less cash and cash e
Slide 30: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION Order book is a supplementary financial measure and is defined as the total value of committed sales orders that have not yet been fulfilled that: (a) have a high certainty of being performed as a result of the existence of a purchase order, an executed contract
Ag Growth International — Q4 2024 Earnings Presentation on 6ix