American Vanguard Corporation · NYSE:AVD

American Vanguard — Shareholder Meeting (June 2014)

62 slides from American Vanguard's shareholder meeting presentation, Jun 4, 2014

  1. Slide 1: American Vanguard 2014 Shareholder Meeting

    AMERICAN VANGUARD 2014 Shareholder Meeting June 4, 2014

  2. 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

  3. Slide 3: Four Important Questions

    Four Important Questions 1. What happened? 2. Why did it happen? 3. Can it be fixed? 4. What does the future hold? 6/3/2014 3

  4. Slide 4: AMVAC Total Sales

    AMVAC Total Sales $381M $78M 00 01 02 03 04 05 06 07 08 09 10 11 12 13 20 20 20 20 20 20 20 20 20 20 20 20 20 20 AMVAC Total Net Sales AMVAC Total CSI Sales 6/3/2014 4

  5. Slide 5: Resistance Recognized

    AMVAC CSI Acres Force Recognized 2004 Resistance Aztec Count 4.67 Lorsb er Smart 2001 an 2006 Choice 2003 Aztec 2.1 SmartBox 2010 System Fortress GMO’s 2000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 6/3/2014 5

  6. Slide 6: AMVAC CSI Acres

    AMVAC CSI Acres 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total CSI Acres AMVAC Total CSI Sales($) 6/3/2014 6

  7. Slide 7: AMVAC CSI Acres

    AMVAC CSI Acres 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Projected CSI Acres Adjusted CSI Acres AMVAC Total CSI Sales 6/3/2014 7

  8. Slide 8: Tony Zatylny

    Tony Zatylny Director of Marketing

  9. Slide 9: Distribution Channel

    Distribution Channel  Obtaining Accurate Information can be Challenging  15 Distributors sell our CSI’s  Distribution sells to + 3,000 Retailers  Retailers sell to 500,000+ Growers Distribut 3,000 500,000 or + Retailers Growers 6/3/2014 9

  10. Slide 10: EDI Recorded Monthly Movement

    EDI Recorded Monthly Movement Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2012 2013 2014  Electronic Data Interchange (EDI) records movement of product from Distribution to Retail and also records returns from Retail to Distribution. 6/3/2014 10

  11. Slide 11: Improved Vision

    Improved Vision Retail Invent ory Estima Market Distribu tes Share tor Growe Invento EDI Resear ry ch r Distribu tor Surve AMVAC ys QAD Sales Invent AMVAC ory Sales 6/3/2014 11

  12. Slide 12: David Johnson

    David Johnson VP, Chief Financial Officer

  13. Slide 13: Financial Review

    Financial Review  Inventory  Factory Costs and Recover  Working Capital and Borrowing Capacity  Operating Expenses 6/3/2014 13

  14. Slide 14: Peter Porpiglia

    Peter Porpiglia Director of Product Development

  15. Slide 15: Yield Advantage of Soil Applied Insecticides

    Yield Advantage of Soil Applied Insecticides University and On-Farm Demo Trials – NE, SD, IA, IL, IN, MN, WI, OH (2011 -2013) 50 One Third Trials 45 Average Increase Bu/A Increase 40 +20 Bu/A 35 Overall Average Increase 30 +8.2 Bu/A 25 20 15 10 5 - 1 13 25 37 49 61 73 85 97 109121133145157169181 (5)

  16. Slide 16: Summary of Trials in IA and IL, 2007-2012

    Summary of 13 Trials in IA and IL, 2007-2012 (Moderate to High Rootworm Infestation Levels in Trials) 3 2.45 0-3 Scale (3= Complete 2.5 2 Damage) 1.5 1.07 1 0.5 0.17 0 Refuge CRW Traited Seed CRW Traited Seed + Insecticide Trait hybrids evaluated include the Agrisure®, Herculex® and YieldGard® trait

  17. Slide 17: Corn Rootworm Trial - Yield

    Corn Rootworm Trial - Yield University of Illinois YieldGard® VT vs. VT plus Counter® 15G, 2007 260 + 250 12.3 240 + 3.3 Yield (Bu/A) 230 YieldGard VT YieldGard VT + Counter + 15G 220 14.7 210 200 Dekalb Monmouth Urbana YieldGard® VT hybrid evaluated alone and with Counter ® 15G SmartBox® applied T-

  18. Slide 18: Jim Lehman

    ! Jim Lehman VP of Sales

  19. Slide 19: AMVAC CSI Acres

    AMVAC CSI Acres 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total CSI Acres 6/3/2014 19

  20. Slide 20: 2013 Prevented Planting Acres

    2013 Prevented Planting Acres 6/3/2014 20

  21. Slide 21: 2013 Acres

    2013 Acres 2013 CSI Purchases 5.8M Ac Less Excess Distributor Inventory 1.2M Ac Less Inventory at Retail & Grower 500K Ac Adjusted Actual 2013 on Ground Sales 4.1M Ac 6/3/2014 21

  22. Slide 22: External CSI Market Factors

    External CSI Market Factors  Corn Price 8 120  7Seed Traits 100  6CRW Resistance 80 5  Worldwide Corn Demand 4 60  Crop Rotation 3 40  2Seed Treatments 20 1 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Corn Acreage Corn Price 6/3/2014 22

  23. Slide 23: Glen Johnson

    Glen Johnson Sr. VP Business Development and Marketing

  24. Slide 24: Granular Products in SmartBox and/or Lock'N Load Systems

    Granular Products in SmartBox® and/or Lock’N Load® Systems 6/3/2014 24

  25. Slide 25: Liquid Corn Soil Insecticide Products

    Liquid Corn Soil Insecticide Products At-Plant Liquid Fertilizer Compatible Launched in 2014 Current Pipeline 6/3/2014 25

  26. Slide 26: High Strength Granular Products

    High Strength Granular Products SmartBox® / Lock’N Load® Systems 5G 15G 4.67G 9.34G Important Products for SIMPAS 6/3/2014 26

  27. Slide 27: SmartBox

    SmartBox® SmartBox®, the only granular application tool that can accurately apply low rates and easily be turned on/off from tractor cab

  28. Slide 28: SmartBox Sales

    SmartBox® Sales Ave Row Units/Yr #Rows/System 2000-2011 4,30012 2012-2014 13,600 16+ 6/3/2014 28

  29. Slide 29: SmartBox - Crops

    SmartBox® - Crops  SmartBox has been used on crops such as corn, cotton, sugar beets, sugarcane, peanuts, potatoes, and other vegetable and row crops, 6/3/2014 29

  30. Slide 30: Future Development Projects

    Future Development Projects  Work with major planter manufactures to improve and streamline installation on their planters  Incorporating GPS mapping and prescription application capabilities  Precision Placement Technology  Universal valve for all equipment options  SmartBox®, Lock‘N Load®, Ul

  31. Slide 31: SIMPAS

    SIMPAS TM Smart Integrated Multi-Product Precision Application System 6/3/2014 31

  32. Slide 32: SIMPAS Prototype

    SIMPAS Prototype

  33. Slide 33: Prototype meter calibration

    Each meter is calibrated at 41.5 grams at 5mph with three different rates 2.0oz 3.0oz 5.0oz

  34. Slide 34: SIMPAS

    SIMPAS Micronutrient Seed Insecticide Biological

  35. Slide 35: Delivery & Application Systems

    Delivery & Application Systems  Successfully address mixer, loader, and applicator safety concerns, spray drift issues and minimize environmental impact  Worldwide leader 6/3/2014 35

  36. Slide 36: Lock'N Load System & Sistema Cerrado

    LockʼN Load® System USA & Sistema CerradoTM Central Americ Propanil 80CHS 6/3/2014 36

  37. Slide 37: Ultima

    Europe Ultima ® Central Americ 6/3/2014 37

  38. Slide 38: SwissMex Backpack / Sistema Cerrado

    SwissMex Backpack Central Americ Sistema Cerrado TM 6/3/2014 38

  39. Slide 39: EZ Load

    EZ LoadTM USA THIMET® 20G 6/3/2014 39

  40. Slide 40: SmartDrop

    SmartDrop™ USA Reduces odor and drift 6/3/2014 40

  41. Slide 41: AMVAC's Potato Portfolio

    AMVAC’s Potato Portfolio Insecticides Insect Control - Ecozin® in Buildings Above Plus and Ground - Ambush® Equipment Application Slug & Snail - Nuvan® Seed - Deadline® Sprout Insect Shield Treatment Fungicide Control - - Blocker™ - Soil Planting Rejuvenate Growing Harvest Post SmartBlock Preparatio

  42. Slide 42: Peanuts

    Peanuts Thimet is an major product for control of thrips in peanuts. 6/3/2014 42

  43. Slide 43: Sugar Crops

    Sugar Crops Sugarcane Sugar beets  Controls wireworm in  Controls sugar beet root sugarcane to optimize maggot which is a key stands and sugar yield. pest for sugar beets. 6/3/2014 43

  44. Slide 44: AMVAC Environmental Products

    AMVAC Environmental Products  Public Health  Mosquito Control  Dibrom® – Vector Control -Dengue Fever Project  BTI Briquettes- larvacide  Bed Bugs  Nuvan® Strips  General Pest Control  Envance Products 6/3/2014 44

  45. Slide 45: AMVAC Environmental Products

    AMVAC Environmental Products  Turf and Ornamentals  Disease Control in Turf  Blocker™ for snow mold control  Combination products for resistance management and reduced rates of PCNB  Soil Sterilant  Basamid® fumigant for golf course renovation, tree replacement and potting soil 6/3/2014 45

  46. Slide 46: Ad de Jong

    Ad de Jong Managing Director, AMVAC BV Netherlands

  47. Slide 47: International

    International GROWTH: 2010 – 2013 +79% 6/3/2014 47

  48. Slide 48: International

    International  Registrations in more than 50 countries  Registrations for 22 different active ingredients with many formulations  Sales in many crops; below most important Banana, Pineapple, Potato, Vegetable, Fruit, Coffee, Corn, Cotton, Sugarcane 6/3/2014 48

  49. Slide 49: International Growth Strategy

    International International Growth Strategy based on six pillars: 1. Organic Growth - Label extension for current portfolio 2. New product development - SmartBlock 3. Acquisitions - an important driver 4. Distribution rights - New development for AMVAC international 5. New market penetrations – Braz

  50. Slide 50: Envance

    ENVANCE TECHNOLOGIES. TYRATECHS” PUTTING NATURE TO WORK

  51. Slide 51: Envance

    Envance  Last year  Began sales in Home Depot  This year  Expanded sales into 11 retailers for a total of 5,046 total stores  Dynamic Consumer Packaging 6/3/2014 51

  52. Slide 52: Bruno Jactel, TyraTech

    Bruno Jactel TyraTech Chief Executive Officer

  53. Slide 53: TyraTech technology platform

    TyraTech has developed a unique technology platform able to transform safe active ingredients into potent insect control products  Proprietary technology discovered at Vanderbilt-Ingram Cancer Center  Founded in 2004, listed on London AIM market in 2007 (LON: TYR & TYRU)  Headquartered in Researc

  54. Slide 54: 2014: Breakthrough year for TyraTech

    2014: Breakthrough year for TyraTech  Launch of 10 products  Head lice treatment is available at Walmart  Head lice shampoo preventative in USA  Launch of insect repellent (USA)  Novartis is launching 6 TyraTech animal health products  Preparing for growth  Strengthening technology platform 

  55. Slide 55: TyraTech's technology works in 3 steps

    TyraTech’s breakthrough technology works in 3 steps and 3 levels of patent protection Step 1 Step 2 Step 3 Selection of Proprietary Selection of active boosting blends ingredients formulation 1+1+ α > 1+1 > 2 10 Patented Patented Patented platform blends formulations 21 granted patents; 50 pending

  56. Slide 56: Launch in 2014

    Launch in 2014 Insect Mosquito control Head Lice and Tick Animal Repellent Health

  57. Slide 57: Complete Solution for head lice control

    Complete Solution for head lice control Single Treatment Daily Preventative Powder to spray Mousse Shampoo (carpet, bed, clothing) http://www.vamousselice.com/ http://abclocal.go.com/wtvd/video?id=951 512

  58. Slide 58: Treatment: Unique Value Proposition

    Treatment: Unique Value Proposition - Kills 100% lice and eggs - Kills fast in 15 minutes - Pesticide-free - Safe for children - Superior cosmetics (non-oily) - Precise application (mousse) amousse will compete in a $700m market for head l

  59. Slide 59: Repellent: next innovation in personal repellents

    TyraTech Guardian Mosquito & Tick Repellent The next innovation in personal repellents - Non pesticide - Up to 8 hours protection (superior to DEET 15%) - Independently proven - Superior cosmetics to natural competitors Guardian will compete in a $1.2b market for repellen

  60. Slide 60: Natunex Solution

    Natunex Solution - EPA exempt - Contact killers provide rapid knockdown and kill - Kills flies, cockroaches, etc. - Efficacious against all stages: adults, larvae, pupae and eggs - Efficacious against resistant strains Natunex will compete in a $900m market for biocides for animal health

  61. Slide 61: TyraTech: high growth potential

    TyraTech: high growth potential Application of technology platform in other market segments  Flea and tick control for pets  Internal parasites More than 15 products in the pipeline Geographical expansion  Western Europe  Developing world

  62. Slide 62: American Vanguard 2014 Shareholder Meeting

    AMERICAN VANGUARD 2014 Shareholder Meeting June 4, 2014

American Vanguard — Shareholder Meeting (June 2014) on 6ix