Ag Growth International Inc. · TSX:AFN

Ag Growth International — Investor Presentation (April 2018)

24 slides from Ag Growth International's investor presentation, April 2018

  1. Slide 1: Investor Presentation April 2018

    INVESTOR PRESENTATION April 2018 1

  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: AGI Overview

    AGI OVERVIEW The AGI Leading Financial Our Growth Innovation Advantage Brands & Strength Strategy & Future Operations • System Solutions • 30 market- • $900M • Field to Consumer • Positive market leading brands market cap outlook • Platform • Diversification perspective • $750M+ • Leverage new • 2,5

  4. Slide 4: The AGI Advantage

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  5. Slide 5: Systems Solutions from Farm to Consumer

    SYSTEMS SOLUTIONS FROM FARM TO CONSUMER 5

  6. Slide 6: Global Platform

    TheaGl Advantage GLOBAL PLATFORM AGI= WESTEEL™ Barcom WESTEEL™ REM WESTEELS NUVISIONS: Gramcuanp= CME * 3 « WESTEEL HIROLLERS HUTCHINSON MAYRATH= ‘STORMOR= ‘SENTINEL ‘BROWNIE? TRAMCcOm YORK™ NECOR Mrs 2018 ACQUISITIONS 2017 ACQUISITIONS 2016 ACQUISITIONS MANUFACTURING FACILITY AGIRUSSIA AGLUKRAINE

  7. Slide 7: Farm and Commercial Divisions

    FARM AND COMMERCIAL DIVISIONS 7

  8. Slide 8: Financial Strength

    FINANCIAL STRENGTH 8

  9. Slide 9: Annual Trade Sales and EBITDA

    ANNUAL TRADE SALES AND EBITDA $800 $700 $600 $500 ANNUAL $400 $756 TRADE SALES $300 (In C$ Millions) $547 $200 $410 $438 $358 $100 $0 2013 2014 2015 2016 2017 $140 $120 $100 $80 ANNUAL $60 $123 ADJUSTED EBITDA $40 $100 (In C$ Millions) $78 $73 $64 $20 $0 2013 2014 2015 2016 2017 9

  10. Slide 10: International Sales

    INTERNATIONAL SALES $160 $140 ▪ International sales strengthened in 2017, $120 driven by the conversion of a strong backlog $100 into sales, the contribution from Global, and $80 AGI’s broadening geographic reach in EMEA, $152 South America, and SE Asia & Australia $60 $107 $40 $92 $78 $102 ▪ AGI’s

  11. Slide 11: Payout Ratio

    PAYOUT RATIO 100% 90% 80% • Dividend $2.40 per annum 67% 70% 60% (1) 52% • Current yield ~ 4% (1) 50% 40% 30% • Senior Debt to EBITDA, net of cash = 2.0x 53% 51% 20% 10% • Total Debt to EBITDA, net of cash = 4.4x 0% 2016 2017 Payout Ratio Excluding Realized Loss on FX (1) Realized loss on foreign ex

  12. Slide 12: Growth Strategy

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  13. Slide 13: Field to Consumer Strategy

    FIELD TO CONSUMER STRATEGY 13

  14. Slide 14: Demand Drivers

    DEMAND DRIVERS FOOD PROCESSING FEED GRAIN VOLUME WEATHER COMMODITY SEED PRICES FERTILIZER FARM GLOBAL COMMERCIAL INFRASTRUCTURE GEOGRAPHY 14

  15. Slide 15: U.S. On-Farm Storage Capacity vs. Total Production

    U.S. ON-FARM STORAGE CAPACITY vs. TOTAL PRODUCTION 14,000 90% 13,500 80% 70% 13,000 60% 12,500 50% 12,000 40% 11,500 30% 11,000 20% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 On-Farm Capacity On-Farm Capacity / Production Source: USDA, million bushels 15

  16. Slide 16: Corn Acres in Western Canada

    CORN ACRES IN WESTERN CANADA 600,000 500,000 400,000 300,000 200,000 100,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: StatsCan, acres 16

  17. Slide 17: Recent Acquisitions

    RECENT ACQUISITIONS CMC Industrial Electronics Junge Control Inc. ▪ Founded in 1997 ▪ Founded in 1979 ▪ Office and manufacturing facility in Burnaby, BC, and sales ▪ Based in Cedar Rapids, IA office in Minneapolis, MN ▪ Supplier of precision blending and measurement systems ▪ Supplier of hazard moni

  18. Slide 18: Recent Acquisitions

    RECENT ACQUISITIONS Danmare Group Inc. ▪ Founded in 2004 ▪ Head office in Vaughan, ON, and recently opened U.S. office in Minneapolis, MN ▪ Provides engineering solutions and project management to the food industry ▪ Specializes in automated systems for pet food, rice & pasta, confectionary, ready-t

  19. Slide 19: Brazil Snapshot

    OurGrowth Wye = BRAZIL SNAPSHOT S J ith 24% of US Corn Production 95% of US Soybean Production 150+ Employees i. = | 242,000 sq. ft. Manufacturing Facility Farm & Commercial Product Lines

  20. Slide 20: AGI Brazil Status

    AGI BRAZIL STATUS ✓ Construction Complete ✓ Technology Transfer Underway ✓ Capable of Producing All AGI Commercial & Farm Products ✓ Investment in Sales Team ✓ Brazilian Economy and Ag Sector Improving ✓ Backlogs Reflect Increasing Farmer Spending 20

  21. Slide 21: Summary

    AGI= LW s ems + ia" \ ans eS teas | SUMMARY

  22. Slide 22: Market Outlook

    MARKET OUTLOOK Canadian Farm Market U.S. Farm Market Crop Volumes Outlook: Stable/Positive Outlook: Improving Outlook: Long Term Farm Market Growth RECOVERING North American Commercial Business International Commercial Business Outlook: Stable Outlook: Strengthening 22

  23. Slide 23: Growth Drivers

    GROWTH DRIVERS M&A Investment in Brazil Continued Consolidation v7 Fertilizer & Material Handling Platform Field to Consumer Operational Efficiencies

  24. Slide 24: System Solutions from Farm to Consumer

    System Solutions from Farm to Consumer 24

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