Ag Growth International Inc. · TSX:AFN
Ag Growth International — Investor Presentation (January 2021)
33 slides from Ag Growth International's investor presentation, January 2021
Slide 1: Investor Presentation January 2021
INVESTOR PRESENTATION JANUARY 2021
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This 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, business prospect
Slide 3: Overview Commercial
complete systems, equipment, and technology global leading brands ✓ 35 global manufacturing facilities ✓ 3,800 employees COMMERCIAL market leading catalogue OVERVIEW Commercial market AGI SURETRACK
Slide 4: We Supply the World's Food Infrastructure
WE SUPPLY THE WORLD’S FOOD INFRASTRUCTURE GLOBAL OPERATIONS WITH REGIONAL HUBS TECHNOLOGY NORTH AMERICA EMEA STRATEGY SOUTHEAST ASIA SOUTH AMERICA STRATEGIC GROWTH FINANCIALS
Slide 5: Strategy
5 PLATFORMS 6 CONTINENTS 5-6-7 STRATEGY 7 COMPONENTS 6
Slide 6: Strategic Growth
STRATEGIC GROWTH 2020 2019 2018 2017 2016 2015 2014 2011 2010 2007 2006 2005 2004 2000 1998 1997 1996 ComPaAss IMPROTECH | INTELLIFARMS | MILLTEC | FARMOBILE* CMC | JUNGE CONTROL | DANMARE | SABE MFS | YORK | STORMOR | BROWNIE HUTCHINSON | MAYRATH | NECO | SENTINEL AGI BRASIL | NUVISION | MMS | YARG
Slide 7: AGI SureTrack – IoT & Software Platform
AGI SURETRACK – IoT & SOFTWARE PLATFORM • Continued growth, positive cross-sell impact across AGI equipment and strategic role in market expansion • Production relocated to new facility, increase in capacity and manufacturing efficiencies for IoT devices • Continued development of the SureTrack plat
Slide 8: Connected Farm, Connected Food
Connected Farm, Connected Food 11
Slide 9: Grain, Elevator, Feed Mill, Processor, Farm
GRAIN ELEVATOR FEED MILL PROCESSOR FARM AG RETAILER 12
Slide 10: Data Across the Operations
DATA ACROSS THE OPERATIONS 1 renvurry Laver 2 THLAGE = Sieataarune 3 PRE-EMERGE epi LAYER 4 PLANTING 5 SPRAY #1 MORE THAN 6 sonay 12 —_ a BIN MONITORING URE 140 LAYERS <<. WS OF DATA ‘TEMPERATURE ft
Slide 11: COVID-19 Update
COVID-19 UPDATE PREPARATION WITH PROGRESS ✓ Completed strategic projects ✓ Maintained results ✓ Minimized impact ✓ Recognized as essential services ✓ Policies, procedures focused on safety ✓ Liquidity & banking COVID-19 WEATHERING THE STORM ✓ Global commercial activity down ✓ Logistic challenges ✓ M
Slide 12: Warranty Accrual
WARRANTY ACCRUAL • Total of $70M estimated expense • Partially offset by insurance coverage • Moved to replacing the entire “cone” section from replacing components of the existing structure • Corresponding increase in amount of steel and labour • Cost of steel also increased significantly in the pe
Slide 13: Resilience. Our Results: Q3 2020
RESILIENCE. OUR RESULTS: Q3 2020 TRADE SALES ($MM) 282.5 261.1 243.1 35.3% 205.7 33.7% 163.0 31.4% 31.3% 30.0% Gross Margin % 22.3% 2016 2017 2018 2019 2020 18.3% 17.5% 16.6% 15.0% ADJUSTED EBITDA ($MM) 51.8 40.2 39.1 Adj. EBITDA Margin % 36.3 36.1 2016 2017 2018 2019 2020 18 2016 2017 2018 2019 202
Slide 14: Resilience. Our Results: YTD
RESILIENCE. OUR RESULTS: YTD TRADE SALES ($MM) $770.3 $772.7 $719.9 $582.6 35.2% 32.5% $420.2 31.9% 31.4% 31.8% Gross Margin % 2016 2017 2018 2019 2020 19.5% 17.5% 16.7% ADJUSTED EBITDA 15.7% 15.7% ($MM) $120.2 $121.1 $121.5 Adj. EBITDA Margin % $102.1 $82.1 2016 2017 2018 2019 2020 2016 2017 2018 2
Slide 15: Resilience. Our Results
RESILIENCE. OUR RESULTS: TRADE SALES ADJUSTED EBITDA ($MM) $999.9 ($MM) $934.1 $148.2 $144.3 $750.3 $121.8 $546.6 $100.3 2016 2017 2018 2019 2016 2017 2018 2019 20
Slide 16: Free Cash Flow and Leverage Overview
FREE CASH FLOW AND LEVERAGE OVERVIEW TTM to September 30, 2020 Senior 000s CAD 2.89x Adjusted EBITDA 144,709 Interest expense (cash) (40,306) NET Income taxes (cash) (5,088) LEVERAGE at Sept. 30, 2020 Maintenance CAPEX (9,466) Free cash flow before growth CAPEX and M&A 89,849 Dividends (11,218) Tota
Slide 17: AGI Global Operations
AGI GLOBAL OPERATIONS GLOBAL OPERATIONS WITH REGIONAL HUBS Canada 10 Italy 06 NORTH AMERICA EMEA India 04 USA 14 SOUTHEAST ASIA Brazil 01 SOUTH AMERICA 35 MANUFACTURING FACILITIES SALES INTO 95 COUNTRIES
Slide 18: AGI in North America
AGI IN NORTH AMERICA Canada 10 • Strong Farm sales NORTH AMERICA • Commercial business update USA 14 • Focus on customer service
Slide 19: North America – Canada: Farm
NORTH AMERICA – CANADA: FARM Gilbert Plains, Manitoba Gladstone, Manitoba Swift Current, Saskatchewan Swift Current, Saskatchewan La Salle, Manitoba
Slide 20: North America – USA: Farm
NORTH AMERICA – USA: FARM Grand Island, Nebraska Grand Island, Nebraska Cameron, Illinois Louisiana Bowen, Illinois
Slide 21: North America - Commercial
NORTH AMERICA - COMMERCIAL Wayland, Iowa Clay Center, Kansas Hamilton, Ontario Red Cloud, Nebraska Greenwood, South Carolina Kalama, Washington
Slide 22: North America - Fertilizer
NORTH AMERICA - FERTILIZER Kansas, Illinois Grinnell, Iowa Brule, Nebraska Hastings, Nebraska Galva, Illinois Galva, Illinois Hardin, Missouri
Slide 23: North America - Food
NORTH AMERICA - FOOD
Slide 24: AGI in South America
AGI IN SOUTH AMERICA • Strong Brazil team and broader product offering • Regional expansion • LATAM sales and channel strategy Brazil 01 SOUTH AMERICA
Slide 25: Brazil
BRAZIL
Slide 26: Brazil
BRAZIL Abadiania – GO, Brasil Brasil Tailândia – PA, Brasil
Slide 27: South America
SOUTH AMERICA Puerto Paredón, Itapúa, Paraguay Argentina
Slide 28: AGI in EMEA
AGI IN EMEA Italy 06 EMEA • Grain bin line automation completed • Expanding local capabilities • Leveraging geographic positions
Slide 29: EMEA
EMEA Ukraine Poland Romania Ukraine
Slide 30: AGI in Southeast Asia
AGI IN SOUTHEAST ASIA • Strong underlying fundamentals for rice market • Expanding product line to enter new market segments across India India 04 • Continuing to expand in Southeast Asia SOUTHEAST ASIA
Slide 31: Southeast Asia
SOUTHEAST ASIA Indonesia Bangladesh Philippines Bangladesh
Slide 32: Australia
AUSTRALIA Horsham, Australia Adelaide, Australia
Slide 33: India
INDIA Central India Project Coscharis Farms Nigeria Tanisk Project , India West Bengal Project , India
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