American Vanguard Corporation · NYSE:AVD
American Vanguard — Shareholder Meeting (June 2016)
33 slides from American Vanguard's shareholder meeting presentation, Jun 8, 2016
Slide 1: 2016 Annual Stockholder Meeting
AMERICAN VANGUARD 2016 Annual Stockholder Meeting June 8, 2016 6/7/2016 1
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
Slide 3: Plan for the future, learn from the past, focus on the present
PLAN for the future LEARN FOCUS from the past on the present AMERICAN VANGUARD AMERICAN VANGUARD 6/7/2016 3
Slide 4: Three Part Strategy
Three Part Strategy Market Access Financial Discipline Technology Innovation 6/7/2016 4 -4-
Slide 5: Three Part Strategy: Market Access
Three Part Strategy Market Access 6/7/2016 5 -5-
Slide 6: Bio-Ag Market
Bio-Ag Market $6.0 $5.0 $4.0 Billions $3.0 $2.0 $1.0 $- 2014 2020 Source: Research and Markets 6/7/2016 6 -6-
Slide 7: International Performance
International Performance $90.0 $80.0 $70.0 $60.0 Millions $50.0 $40.0 $30.0 $20.0 $10.0 $- 2005 2010 2015 6/7/2016 7 -7-
Slide 8: International Expansion
International Expansion Future growth from building market access operations through alliances AMVAC AMVAC Sales Office Canada Office Netherlands BV* Ukraine France Office Quimica AMVAC de Mexico* AMVAC Singapore Pte Ltd* AMVAC de Costa Rica* AMVAC do Brasil Representações LTDA* *Subsidiaries 6/7/20
Slide 9: Planned International Structure
Planned International Structure AMVAC AVD Int LLC - United States - - United States - AMVAC CV - United States - AMVAC BV - Netherlands - AMVAC AMVAC AMVAC AMVAC AMVAC JV - Brazil - - Costa Rica - - Mexico - - Netherlands - - Singapore - - Hong Kong - Brazil Region LATAM Region Mexico Region EMEA Re
Slide 10: Three Part Strategy: Financial Discipline
Three Part Strategy Market Access Financial Discipline 6/7/2016 10 - 10 -
Slide 11: 2015 vs 2014 Improvements
2015 vs 2014 Improvements Manufacturing Cost Reduction $6M OPEX Reduction $8M Inventory Reduction $30M Debt Reduction $30M Acquisitions Funded $37M Cash Flow Improvement Y-O-Y $113M 6/7/2016 11 - 11 -
Slide 12: Q1 2016 vs Q1 2015
Q12016 vs Q12015 Millions Q1 2016 Q1 2015 Net Sales $69,474 $66,565 Gross Profit $27,503 $24,650 Operating Income $4,630 $306 Net Income $2,794 $51 Operating Expenses $22,873 $24,344 Inventory $144,415 $166,981 Factory Under absorption $4,440 $5,993 Earnings per Common Share assuming dilution $.10 $
Slide 13: Three Part Strategy: Technology Innovation
Three Part Strategy Market Access Financial Discipline Technology Innovation 6/7/2016 13 - 13 -
Slide 14: Redefining the "At-Planting" Experience
Redefining the “At-Planting” Experience - 14 -
Slide 15: Precision Ag Market Segment is Growing
Precision Ag Market Segment is Growing Global Precision Ag Market Estimated Growth USD $4,799 Market Size USD Million $2,761 Million 2015 2020 Source: “Precision Farming Market – Global Forecast to 2020”, MarketsandMarkets, January , 2016 MarketsandMarkets is the second-largest market research firm
Slide 16: Context
yg. CONTEXT
Slide 17: Context
yg. CONTEXT
Slide 18: Nematicides
nt Nematicides o SIMPAS" yg. CONTEXT
Slide 19: Nematicides and Fungicides
Nematicides Fungicides SIMPAS: AFAMVAC -19- contest
Slide 20: Other: Plant Growth Regulators, Biostimulants, Inoculants
*Other: Plant Growth Regulators, Biostimulants, Inoculants, Specialty Nutritionals, etc. - 20 -
Slide 21: SIMPAS makes it easy to prescriptively apply multiple products
SIMPAS makes it EASY to PRESCRIPTIVELY apply MULTIPLE PRODUCTS while PLANTING. *Other: Plant Growth Regulators, Biostimulants, Inoculants, Specialty Nutritionals, etc. - 21 -
Slide 22: Smart Integrated Multi-Product Prescription Application System
Smart Integrated Multi-Product Prescription Application System One system for insecticides, fungicides, nutritionals & biologicals Dry and/or Liquid Products Applied Simultaneously Application Accuracy (+/- 1%) Patented Computer at VERY LOW Rates Meters generated image of RFID Cartridge Packaging be
Slide 23: iPad-Based User Interface
iPad®-Based User Interface Intuitive & easy to manage iPad- based user interface Easy & straightforward product setup RFID-tagged containers for System Control, Product ID/Verification, Data Standardization, iPad is a registered trademark of Apple, Inc. - 23 -
Slide 24: Video Demonstration
x SIMPAS Video Demonstration /FAMVAC 7 24- context
Slide 25: Innovation Path
Innovation Path Eliminates Worker Exposure Reduces Environmental Impact All types of Products: Fungicides, Insecticide Only micronutrients, stimulants, inoculants, insecticides, biologicals Prescription Application & Data Precision Application of Chemical Recording Accurately delivers constant Synch
Slide 26: Context brings a wide range of executive level experience
Context brings a wide range of executive level experience across the crop input, equipment and precision ag sectors THE CONTEXT NETWORK CONNECTS AG INPUT, AG MACHINERY & PRECISION AG EXPERTS into a single project team organized and managed by experienced consultants CROP INPUT COMPANIES AG MACHINERY
Slide 27: Value Pillars
Value Pillars SIMPAS value is demonstrated across critical stakeholder groups throughout the value chain. VALUE PILLARS Farmer Wholesaler/Retailer Input Manufacturer Equipment Manufacturer SIMPAS… SIMPAS… SIMPAS… SIMPAS… …simplifies …enables farmers to act …creates new uses for …incremental prescrip
Slide 28: Primary Opportunities – Needs
USA Crop-Specific Unmet/Under-Satisfied Needs Corn Soybeans Cotton Potatoes Sugar Beets Peanuts Nematode Control Nematode Control Nematode Control Nematode Control Nematode Control Nematode Control Primary Opportunities – Needs Seed & Seedling Seed & Seedling Seed & Seedling Disease Management Disea
Slide 29: Primary Opportunities – Needs (Corn)
USA Crop-Specific Unmet/Under-Satisfied Needs Corn Nematode Control Primary Opportunities – Needs Seed & Seedling Disease Management (88M Planted Acres) Corn Rootworm & Unstacked (non-Bt) Corn-Focused Solution Germination Aids (Absorbent Materials, Corn etc.) Other Soil Pest Control Nematode Control
Slide 30: Primary Opportunities – Needs Analysis Process
Unmet/Under-Satisfied Needs Analysis Process Each crop-specific opportunity was analyzed to determine the overall treatment market and the potential opportunity for SIMPAS. Corn Overall Nematode Control % At-Plant Estimated Overall Acreage Estimate Treatment Opportunity Grower $/Acre Market Opp. ~10
Slide 31: USA Crop Input Product Sales
USA Crop Input Product Sales Market Potential if all “Yield-limited” acres with unresolved needs are treated with a SIMPAS-applied product. Target Crops U.S. Acreage: ~183 M Corn Soybeans Cotton Potatoes Sugar Beets Peanuts Acreage Planted ~88M ~82.65M ~8.58M ~1.065M ~1.16M ~1.63M Total Treatable Op
Slide 32: Expansion Potential
Expansion Potential Today: Intermediate Term: SIMPAS 1.0 SIMPAS 2.0 6 Targeted Crops, Additional USA Crops USA-only & ex-USA Regions Corn, Cotton, Soybeans Brazil, Canada, China Peanuts, Potatoes, Sugar Beets Australia, EU, India USA Opportunity & Only 6 Crops Global Opportunity & More Crops Tremend
Slide 33: American Vanguard
AMERICAN VANGUARD 2016 Annual Stockholder Meeting June 8, 2016 6/7/2016 33