Ag Growth International Inc. · TSX:AFN
Ag Growth International — Investor Presentation (November 2017)
33 slides from Ag Growth International's investor presentation, November 2017
Slide 1: Field to Consumer 2017
FIELDTO FIELD TO CONSUMER CONSUMER 2017 2017
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 “
Slide 3: AGI Snapshot
AGI SNAPSHOT FIELD TO CONSUMER 3
Slide 4: AGI brands, founded November 1996
AU MFS= YORK STORMORS BROWNIES HUTCHINSON” MAYRATH= NECO= SENTINEL= Al; ENTRINGERS NUVISION= MMS YARGUS= Ui WESTEEL= PTM2= FRAME= VIS= AUS REM Ai AIRLANCO Ali TRAMCO= ie TWISTERS UNIONIRON= Ue Hi ROLLER= GRAIN GUARD= AGI |Po WESTFIELD= WHEATHEART= BATCO= AGIZ Founded November, 1996
Slide 5: Distribution: Farm Equipment Dealers and Commercial
Distribution: Farm Equipment Dealers Standardized Product Portfolio Key Demand Drivers: Crop Volume & Replacement Cycle WESTFIELD] WHEATHEART= WESTEELS BATCO= REM= GRAINGUARD= TWISTER= ENTRINGER= MFS= YORK= STORMOR= BROWNIE= HUTCHINSON= MAYRATH= NECO= COMMERCIAL Distribution: Direct to Customers and
Slide 6: AGI Strategy
AGI STRATEGY FIELD TO CONSUMER 6
Slide 7: Global Footprint
GLOBAL FOOTPRINT FIELD TO CONSUMER 7
Slide 8: Field to Consumer
FIELD TO CONSUMER FIELD TO CONSUMER 8
Slide 9: Demand Drivers
DEMAND DRIVERS FOOD PROCESSING GRAIN VOLUME FEED WEATHER COMMODITY SEED PRICES REGIONAL WEATHER GRAIN VOLUME FERTILIZER FARM GLOBAL COMMERCIAL INFRASTRUCTURE GEOGRAPHY FIELD TO CONSUMER 9
Slide 10: Field to Consumer
AGI= FERTILIZER PROCESSOR EXPORT PORT FIELD TO CONSUMER 10
Slide 11: Financials
FINANCIALS
Slide 12: Annual Trade Sales and Adjusted EBITDA
$600 $500 ANNUAL $400 TRADE SALES $300 $583 (In C$ Millions) $547 $200 $410 $438 $358 $100 $0 2013 2014 2015 2016 YTD to Q3 '17 $120 $100 $80 ANNUAL ADJUSTED EBITDA $60 $100 $102 (In C$ Millions) $40 $78 $73 $64 $20 $0 2013 2014 2015 2016 YTD to Q3 '17 FIELD TO CONSUMER 12
Slide 13: YTD (to Q3) Trade Sales and Adjusted EBITDA
$600 $500 YTD (to Q3) $400 TRADE SALES $300 $583 (In C$ Millions) $200 $420 $317 $324 $270 $100 $0 2013 2014 2015 2016 2017 $120 $100 $80 YTD (to Q3) $60 ADJUSTED EBITDA $102 (In C$ Millions) $40 $82 $65 $60 $50 $20 $0 2013 2014 2015 2016 2017 FIELD TO CONSUMER 13
Slide 14: Q3 Trade Sales and Adjusted EBITDA
$250 $200 Q3 $150 TRADE SALES (In C$ Millions) $100 $206 $163 $117 $119 $124 $50 $0 2013 2014 2015 2016 2017 $40 $30 Q3 ADJUSTED EBITDA $20 (In C$ Millions) $36 $36 $27 $24 $10 $20 $0 2013 2014 2015 2016 2017 FIELD TO CONSUMER 14
Slide 15: Payout Ratio
PAYOUT RATIO (at Sept. 30, 2017) ▪ Dividend $2.40 per annum 100% ▪ Current yield > 4% 90% ▪ Senior Debt to EBITDA, net of cash = 1.8x 80% 69% ▪ Total Debt to EBITDA, net of cash = 4.1x 70% 54% 60% (1) (1) 50% 40% 30% 52% 50% 20% 10% 0% LTM Sept 30 2016 LTM Sept 30 2017 Payout Ratio Excluding Realize
Slide 16: International Commercial
INTERNATIONAL COMMERCIAL ▪ International Sales (ex-acquisitions) were weak in 2016, primarily due to delays in large commercial grain storage and handling projects ▪ Activity in this area has improved in 2017, and is expected to return to more normalized levels in 2017-2018 $120 $112 $100 $92 $22 $7
Slide 17: Global Industries
GLOBAL i INDUSTRIES § ™“ sui a eeu \ Ae i DS \\, : i — —_ i > =a ee |) “es es
Slide 18: Global Industries Snapshot
GLOBAL INDUSTRIES SNAPSHOT FIELD TO CONSUMER 18
Slide 19: Financial Highlights: Average EBITDA
FINANCIAL HIGHLIGHTS AVERAGE EBITDA (USD Millions) $18 $17.0 $16 $14 27% $11.5 $12 $10 73% $8 $6 $4 $2 Domestic Sales International Sales $0 2011-2014 2014-2016 FIELD TO CONSUMER 19
Slide 20: Mayrath / Hutchinson
}//Mayrath || Hutchinson y 2 \ u
Slide 21: 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 FIELD TO CONSUMER 21
Slide 22: Fertilizer
FERTILIZER
Slide 23: Global Nutrient (N,P,K) Consumption
GLOBAL NUTRIENT (N,P,K) CONSUMPTION Source: FAO, UN FIELD TO CONSUMER 23
Slide 24: Fertilizer
FERTILIZER ▪ New growth platform and end-market diversification ▪ Growth primarily driven by the expansion or upgrading of: ▪ Retail agriculture distribution facilities ▪ Grain, oilseed, feed, and food processing facilities FIELD TO CONSUMER 24
Slide 25: AGI Brasil
AGI BRASIL
Slide 26: Brasil Snapshot
BRASIL SNAPSHOT FIELD TO CONSUMER 26
Slide 27: AGI Brasil Update
AGI BRASIL UPDATE ▪ Construction Complete ▪ Technology Transfer Underway ▪ Produce all AGI Commercial & Farm Products ▪ Investment in Sales Team FIELD TO CONSUMER 27
Slide 28: Seed
SEED
Slide 29: Seed Treater
SEED TREATER STORM PROFESSIONAL ▪ Fastest All-Seed Treater on the market – ideal for “Just-in-Time” treating ▪ Complete commercial-level turn-key seed treating system ▪ Suitable for portable and permanent systems ▪ Quickly establish retail seed treating capabilities or add to existing capacities ▪ T
Slide 30: Feed
FEED
Slide 31: Feed Facilities
FEED FACILITIES FIELD TO CONSUMER 31
Slide 32: Outlook
AGI= OUTLOOK ys A Canadian Farm Market US Farm Market Crop Volumes Outlook: Robust Outlook: Signs of Recovery Outlook: Long Term Growth North American Commercial Business International Commercial Business Outlook: Stable Outlook: Strengthening FIELD TO CONSUMER 32
Slide 33: Growth Drivers
GROWTH DRIVERS FIELD TO CONSUMER 33
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