American Vanguard Corporation · NYSE:AVD

American Vanguard — Q2 2021 Earnings Presentation

33 slides from American Vanguard's earnings presentation, Aug 10, 2021

  1. Slide 1: Q2 2021 Earnings Call

    = AMERICAN Q2 2021 Year Earnings Call y? Gg VANGUARD’ August 9, 2021

  2. Slide 2: Safe Harbor

    Safe Harbor The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that may cause results to

  3. Slide 3: 2021 Outlook

    2021 Outlook Revenue . . . . . . . . . .. . . . Low Double-Digit Increase Gross Profit Margin . . . . Similar to recent years Operating Expenses . . . . Modest increase driven by growth initiatives Interest Expense . . . . . . Similar to 2020 Tax Rate . . . . . . . . . . . . . .Expected Mid 20% Rang

  4. Slide 4: 2021 Outlook (1st Half Status)

    2021 Outlook (1st Half Status) Revenue .. . . . . . . . . . . . . Low Double-Digit Increase Gross Profit Margin . . . . Similar to recent years Operating Expenses . . . . Modest increase driven by growth initiatives Interest Expense . . . . . . Similar to 2020 Tax Rate . . . . . . . . . . .. . . .Ex

  5. Slide 5: Financial Review

    Financial Review Mr. David JohnsonChief Financial Officer AMERICAN VANAGUARD //

  6. Slide 6: Q2 2021 Sales

    Q2 2021 Sales Overall sales Q2 2021 $135m vs $105m in 2020 (up 29%) International 38% of total in 2021 vs 44% of total in 2020 $ 000’s US Crop up 40% US Non-crop up 54% International up 10% AMERICAN VANAGUARD //

  7. Slide 7: Q2 2021 Gross Profit Performance

    Q2 2021 Gross Profit Performance ($000’s) AMERICAN VANAGUARD // 12 months 12 months 3-months Ended June 30, 3-months Ended December 31, 12-months Ended December 31, 3-months Ended June 30, 12-months Ended December 31, 3-months Ended September 30, Net Sales 2021 2020 Change Net Sales 2020 2019 Change

  8. Slide 8: Standard vs. Reported Margin

    Standard vs. Reported Margin AMERICAN VANAGUARD //

  9. Slide 9: Q2 2021 Operating Expenses

    Q2 2021 Operating Expenses $43,080 $33,579 $ 000’s Operating expenses are 32% of sales in 2021 and in 2020 AMERICAN VANAGUARD //

  10. Slide 10: Q2 2021 Statements of Operations (3 months ended June 30)

    Q2 2021 Statements of Operations (3 months ended June 30) $ 000’s AMERICAN VANAGUARD // 3 months Ended June 30, 6 months Ended June 30, Statements of Operations 2021 2020 Change 2021 2020 Change Net Sales $,134,610 $,104,555 $30,055 0.28745636267992924 $,250,765 $,200,517 $50,248 0.28745636267992924

  11. Slide 11: Q2 2021 Statements of Operations (6 months ended June 30)

    Q2 2021 Statements of Operations (6 months ended June 30) $ 000’s AMERICAN VANAGUARD // 6 months Ended June 30, Statements of Operations 2020 2021 2020 Change Net Sales $,104,555 $,250,765 $,200,517 $50,248 0.28745636267992924 0.25059221911359136 Gross profit 40306 97270 78687 18583 0.29357911973403

  12. Slide 12: Cash Generation and Uses (3 months)

    Cash Generation and Uses (3 months) $ 000’s AMERICAN VANAGUARD // 3-months Ended June 30, 2020 2019 2021 2020 2019 Cash from Operations $17,596 $18,517 8215 4407 7012 4407 $14,758 $10,465 $8,490 Change in Working Capital ,-11,136 ,-50,603 10697 9233 -1,467 10,064 ,-20,313 Net Cash from Operations 6,

  13. Slide 13: Inventory

    Inventory $ Millions $181 $175 $163 $164 AMERICAN VANAGUARD //

  14. Slide 14: Debt

    Debt $ Millions AMERICAN VANAGUARD //

  15. Slide 15: Overall Financial Performance of Operations

    Overall Financial Performance of Operations Overall, during the second quarter of 2021, we have seen very strong sales in all three of our reporting categories. We managed inventory well, and our overall margins have held up. We reported an 32% increase in net income in the three months and an 86% i

  16. Slide 16: 3-5 Year Forecast Review

    3-5 Year Forecast Review Mr. Eric WintemuteChairman and CEO AMERICAN VANAGUARD //

  17. Slide 17: Core Business Targets

    $ Millions Core Business Targets $736 $604 AMERICAN VANAGUARD //

  18. Slide 18: Core New Product Pipeline

    Core New Product Pipeline 2026 2027 100 60 $597 $694 AMERICAN VANAGUARD //

  19. Slide 19: Green Solutions Target

    Green Solutions Target $ Millions $140 4 $70 Overall 1H Revenue at 17M, Expected range $32-$35M for 2021 $32-$35M AMERICAN VANAGUARD //

  20. Slide 20: AVD Has Over Biological Solutions Globally

    AVD Has Over 80 Biological Solutions Globally Boro Copper 25% Humic and fulvic Acid K Citrate Nutrients Mix Pentahydrate Copper sulphate Phospourus + Potasium Ascophillum nodosum Brassinosteroids Caolin G3, Fosfate Marine Bioactive Mo, Zn, Carboxilic Acids NAA/NAD 3-decen-3-one Azadirachtin Botanica

  21. Slide 21: AVD Has Biological Solutions Globally

    AVD Has 100 Biological Solutions Globally Boro Copper 25% Humic and fulvic Acid K Citrate Nutrients Mix Pentahydrate Copper sulphate Phospourus + Potassium Ascophillum nodosum Brassinosteroids Caolin G3, Fosfate Marine Bioactive Mo, Zn, Carboxilic Acids NAA/NAD 3-decen-3-one Azadirachtin Botanical E

  22. Slide 22: Crop Trials

    14 Crop Trials Corn Tomatoes Blueberries Almonds Lettuce Strawberries Cotton Sugarcane Onion Potato 9 Turf Trials 2021 US Agrinos Biological Trials Approximately 1,500 total test plots AMERICAN VANAGUARD //

  23. Slide 23: SIMPAS: Value Capture Target

    SIMPAS: Value Capture Target $ Millions AMERICAN VANAGUARD //

  24. Slide 24: SIMPAS: U.S. Value Capture Target on Crops

    SIMPAS: U.S. Value Capture Target on 4 Crops $ Millions $52 $28 AMERICAN VANAGUARD //

  25. Slide 25: SaS Portfolio Candidates by Crop

    Crop 2021 2022 2023 Aztec HC Counter Force 10G HL Zinc iNvigorate Boron micronutrient Micronutrient enhancers Azoxystrobin N-fixing PGR abamectin Bif+ aba 3rd party liquid insecitide Index liq. 14 Zinc iNvigorate 2MOA gran Fungicide Soybean inoculant IDC iron GR and liq Humic acid Mg micronutrient P

  26. Slide 26: SIMPAS/SaS – Highlights

    SIMPAS/SaS – Highlights SaS Performance Overview Average SIMPAS customer has been twice the size of the average historical SmartBox grower size over the last two years Average SaS value per farm the last two years has been 4-to-1 vs our average historical SmartBox customers Based on current commodit

  27. Slide 27: iPad Showcase

    AMERICAN VANAGUARD // Ipad Showcase Covers 5 Topics with a total of 32 Content Tabs

  28. Slide 28: SIMPAS Applied Solutions

    SIMPAS applied Solutions AMERICAN VANAGUARD //

  29. Slide 29: Business Builder

    Business Builder AMERICAN VANAGUARD //

  30. Slide 30: Strategic Growth Targets

    Strategic Growth Targets $ Millions $918 $695 AMERICAN VANAGUARD //

  31. Slide 31: Return on Investment Analysis: Acquisitions from 2014-2020

    RETURN ON INVESTMENT ANALYSIS: ACQUISITIONS FROM 2014-2020 TOTAL CASH = ~$200 MILLION CASH/INCREMENTAL EBITDA* = 5-6X RETURN ON CAPITAL EMPLOYED = 10% (WACC = 9%) CASH/FULLY BURDENED EBITDA* = 7-8X *BASED UPON FORECASTED 2021 SALES AMERICAN VANAGUARD //

  32. Slide 32: Working Capital Investment Criteria

    Working Capital Investment Criteria AMERICAN VANAGUARD // IRR Payback period 10-year P&L Other Factors New product pipeline SIMPAS Green Solutions Short-, mid- and long-term Sales, GM, Operating Icome Apply working capital Calculate return on working capital External Acquisitions Internal Investment

  33. Slide 33: Yq AMERICAN ,

    Yq AMERICAN , VANGUARD”

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