Ag Growth International Inc. · TSX:AFN
Ag Growth International — Investor Presentation (September 2017)
35 slides from Ag Growth International's investor presentation, September 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 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: Facilities and acquisitions map
WESTEEL= WESTEEL= BATCO= REM= WESTFIELD= WHEATHEART= = acy WESTEEL= — WESTEEL= Graincuanp= ——“UVISIONE — 5 4° TWISTERS WESTEEL= . visa HIROLLERS-, uns . 2—__-—__ wms= lal ———————— NECO™ _ union IRONS YorK= -HUTCHINSON= ——______ +.—____ = STORMOR= mayratus TRAMCOE —= ] BROWNIEZ vara MMS= AIRLANCO= EN
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: Performance Since IPO
PERFORMANCE SINCE IPO (net of $338M in dividends) FIELD TO CONSUMER 12
Slide 13: 20 Years of Sales
20 YEARS OF SALES 1997 – 2016 $600 $547 $500 $439 $410 $400 $358 $315 $301 $300 $262 $237 $199 $200 $131 $100 $84 $63 $82 $60 $55 $57 $35 $12 $4 $11 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 FIELD TO CONSUMER 13
Slide 14: Annual Trade Sales and Adjusted EBITDA
$600 $500 ANNUAL $400 TRADE SALES (In C$ Millions) $300 $547 $438 $200 $358 $410 $377 $315 $100 $0 2012 2013 2014 2015 2016 First Half 2017 $120 $100 $80 ANNUAL ADJUSTED EBITDA $60 $100 (In C$ Millions) $40 $78 $73 $64 $66 $50 $20 $0 2012 2013 2014 2015 2016 First Half 2017 FIELD TO CONSUMER 14
Slide 15: H1 and H2 Adjusted EBITDA
$70 $60 $50 H1 $40 ADJUSTED EBITDA $30 $66.0 (In C$ Millions) $45.8 $20 $38.5 $39.6 $10 $23.9 $0 2013 2014 2015 2016 2017 $70 $60 $50 H2 $40 ADJUSTED EBITDA (In C$ Millions) $30 $54.6 $20 $40.4 $39.7 $33.7 $10 $0 2013 2014 2015 2016 FIELD TO CONSUMER 15
Slide 16: Q3 and Q4 Adjusted EBITDA
$40 $36.4 $35 $30 $14.5 $25 Q3 $19.9 $20 ADJUSTED EBITDA $2.2 (In C$ Millions) $15 $26.7 $23.3 $21.9 $10 $17.7 $5 $12.5 $0 2012 2013 2014 2015 2016 Acquisitions $40 $35 $30 Q4 $25 $18.2 ADJUSTED EBITDA $20 $14.1 (In C$ Millions) $15 $7.7 $3.9 $10 $13.9 $13.0 $5 $10.2 $10.5 $4.7 $0 2012 2013 2014 201
Slide 17: Payout Ratio
PAYOUT RATIO (at June 30, 2017) 100% ▪ Dividend $2.40 per annum 92% 90% ▪ Current yield > 4% 80% (1) ▪ Senior Debt to EBITDA, net of cash = 1.9x 70% ▪ Total Debt to EBITDA, net of cash = 4.3x 60% 56% (1) 50% 40% 30% 62% 49% 20% 10% 0% LTM June 30 2016 LTM June 30 2017 Payout Ratio excluding realized
Slide 18: 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 $106.7 $101.8 $100 $
Slide 19: Global Industries
GLOBAL i INDUSTRIES § ™“ sui a eeu \ Ae i DS \\, : i — —_ i > =a ee |) “es es
Slide 20: Global Industries Snapshot
GLOBAL INDUSTRIES SNAPSHOT FIELD TO CONSUMER 20
Slide 21: 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 21
Slide 22: Mayrath / Hutchinson
}//Mayrath || Hutchinson y 2 \ u
Slide 23: 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 2017F FIELD TO CONSUMER 23
Slide 24: Fertilizer
FERTILIZER
Slide 25: Global Nutrient (N,P,K) Consumption
GLOBAL NUTRIENT (N,P,K) CONSUMPTION Source: FAO, UN FIELD TO CONSUMER 25
Slide 26: 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 26
Slide 27: AGI Brasil
AGI BRASIL
Slide 28: Brasil Snapshot
BRASIL SNAPSHOT FIELD TO CONSUMER 28
Slide 29: AGI Brasil Update
AGI BRASIL UPDATE ▪ Construction Complete ▪ Technology Transfer Underway ▪ Produce all AGI Commercial & Farm Products ▪ Investment in Sales Team FIELD TO CONSUMER 29
Slide 30: Seed
SEED
Slide 31: 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 32: Feed
FEED
Slide 33: Feed Facilities
FEED FACILITIES FIELD TO CONSUMER 33
Slide 34: 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 34
Slide 35: Growth Drivers
GROWTH DRIVERS FIELD TO CONSUMER 35
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