Ag Growth International Inc. · TSX:AFN

Ag Growth International — Investor Presentation (January 2017)

19 slides from Ag Growth International's investor presentation, January 2017

  1. Slide 1: January 2017 – Corporate Presentation

    January 2017 – Corporate Presentation

  2. 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 “

  3. Slide 3: Corporate Overview

    CORPORATE OVERVIEW

  4. Slide 4: AGI Snapshot

    $750M+ Market Cap $600M+ in Annual Sales 20 Manufacturing Facilities Located in Canada, USA, Brazil, UK & Italy 2,000+ Employees -_ _ aay —— 19 Leading Brands AGI= ‘AG GROWTH INTERNATIONAL

  5. Slide 5: Brands and acquisition history

    BATCO™ REM™ NUVISION® GRAINGUARD™ =e TWISTER } mus= HIROLLER™ ae Sie f UNION IRON™= TRAMCO™ 2016 Entringer, NuVision, MMS, Yargus. 2015 PTM, Westeel, VIS, FRAME 2014 REM 2011 Airlanco 2010 Tramco 2007 Twister, Union Iron 2006 Hi Roller 2005 Grain Guard 2004 AG, PO 2000 Westfield 1998 Wheatheart 1997

  6. Slide 6: Two Sides to Our Business

    7: be a a ‘a COMMERCIAL Geographic Scope: North America Geographic Scope: Global Distribution: Farm Equipment Dealers Distribution: Direct to Customers and Contractors Standardized Product Portfolio Key Demand Drivers: Crop Volume Key Demand Drivers: Crop Volume & Global Infrastructure Gap & Replace

  7. Slide 7: AGI Strategy

    g AGI STRATEGY NS ee A 1. DIVERSIFICATION ¢ PRODUCT LINE ¢ GEOGRAPHIC ¢ CUSTOMER/END USER 2. LEAN MANUFACTURING 3. INVESTMENT IN OUR PEOPLE

  8. Slide 8: Fertilizer Distribution

    FERTILIZER DISTRIBUTION ELEVATOR EXPORT PORT ‘AG GROWTH INTERNATIONAL

  9. Slide 9: Key Demand Drivers

    MAND DRIV Oe | \ eee es Harvest 4am — “=a Crop Conditions ; ©. te (am. Volume ’ sae i Grain \ Se Commodity Infrastructure Prices

  10. Slide 10: Financial

    FINANCIAL

  11. Slide 11: Annual Trade Sales and Annual Adjusted EBITDA

    600 $555 500 134.8 400 300 ANNUAL TRADE SALES 409.7 474.3 420.2 200 (In C$ Millions) 314.6 358.3 100 0 2012 2013 2014 2015 2016E Annual Trade Sales Q4 Analyst Consensus Nine months ended Sept 30, 2016 120 25% 100 $99.1 19% 20% 18% 20% 16% 15% 16.9 80 15% 60 ANNUAL ADJUSTED EBITDA 40 78.2 82.2 10% (I

  12. Slide 12: Payout Ratio

    PAYOUT RATIO Dividend $2.40 per annum $70,000.00 $60,000.00 $53,067 $52,793 $51,547 (1) $50,000.00 $51,500 $40,471 (1) $40,000.00 $37,090 $32,306 $30,000.00 $20,000.00 50% 75% 93% 57% 61% 91% 69% $10,000.00 $- 2010 2011 2012 2013 2014 2015 2016E* (1) Payout Ratio Funds from Operations Realized loss

  13. Slide 13: Fertilizer & Material Handling

    FERTILIZER & MATERIAL HANDLING 12

  14. Slide 14: Brazil

    BRAZIL AGI= AG GROWTH INTERNATIONAL

  15. Slide 15: Agriculture in Brazil

    AGRICULTURE IN BRAZIL  Rapidly growing grain producer TOTAL GRAIN PRODUCTION (mm tons) 250  World’s 3rd largest exporter of 189 194 202 agricultural products; leading 200 166 149 163 144 producer of soybeans 150 123 132 135 100  Additional crop growth through the conversion of pasture and 50 yiel

  16. Slide 16: Lack of Infrastructure

    LACK OF INFRASTRUCTURE  On-farm storage capacity ~15% ILLUSTRATIVE: SOYA PRODUCTION & LOGISTIC COST (US$/T)  Most farmers are price-takers at harvest and pay more for Soybean Brazil USA Difference freight during peak season Cost of Production 187 238 51  Significant growth in demand Transport 97

  17. Slide 17: AGI Brazil

    AGI BRAZIL 16

  18. Slide 18: AGI Growth Drivers

    AGI GROWTH DRIVERS Investment in Brazil Continued Consolidation 7 pot Platforms for Expansion Operational Efficiencies AGI= ‘AG GROWTH INTERNATIONAL

  19. Slide 19: Thank You

    THANK YOU

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