Corporate Presentation
September 2019
Corporate Presentation September 2019 Disclaimer General These - - PowerPoint PPT Presentation
Corporate Presentation September 2019 Disclaimer General These materials and the information contained herein are being presented by AgJunction, Inc. (the "Company" or "AgJunction"). By attending a meeting where these
Corporate Presentation
September 2019
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Disclaimer
General These materials and the information contained herein are being presented by AgJunction, Inc. (the "Company" or "AgJunction"). By attending a meeting where these materials are presented, or by reading them, you agree to be bound by the following limitations and notifications. These materials do not constitute or form part of any
form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. These materials are not a prospectus or an offer document and has not been prepared, approved or registered in accordance with Canadian or United States securities laws or the securities laws of any other
imposed by applicable laws. These materials do not constitute any form of commitment or recommendation on the part of the Company. These materials do not purport to be all-inclusive or to contain all the information that prospective investors may desire in analyzing and deciding whether or not to hold
investment objectives or financial circumstances of any specific person who may receive it. Recipients of these materials must rely on their own examination of the legal, taxation, financial and other consequences of any possible holding or transaction involving the Company’s shares, including the merits and risks involved. Recipients should not treat the contents of these materials as advice relating to legal, taxation or other matters and are advised to consult their own professional advisors concerning the acquisition, holding or disposal of shares in the Company. The information provided in these materials has either been obtained from the Company or constitutes publicly available material. Although the Company has endeavored to contribute towards giving a correct and complete picture of the Company, neither the Company, its subsidiaries, nor any of their respective members, directors, advisors, officers, agents, advisors or employees nor any other person can be held liable for loss or damage of any kind, whether direct or indirect, arising from use of these materials or their contents or otherwise arising in connection therewith. The Company, the subsidiaries or any of their respective members, directors, advisors, officers, agents, advisors or employees or any other person assume no responsibility whatsoever and makes no representation or warranty, expressed or implied, for the contents of these materials, including its accuracy, completeness or verification for any other statement made or purported to be made by any of them,
Recipients of this material should refer to AgJunction’s Disclosure, Confidentiality, and Trading policy for further information and clarification.
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Disclaimer
Forward-Looking Statements Certain statements contained in this presentation constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation, including, but not limited to, management's assessment of future plans, operations and strategies; AgJunction's strategy and plans for its products and business; the Company's beliefs as to the benefits to farmers of adopting the Company's products; the Company's anticipated revenues for fiscal year-end 2019; potential growth opportunities and the anticipated benefits and results from such growth opportunities; potential benefits from strategic partnerships; and other matters related to the foregoing. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target" and similar words suggesting future events or future performance or may be identified by reference to a future date. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements included in this presentation, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. With respect to forward-looking statements contained in this presentation, AgJunction has made assumptions regarding, among other things: the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labor and services; that AgJunction's future results of operations will be consistent with management expectations in relation thereto; the continued availability of capital at attractive prices to fund future capital requirements relating to existing and future projects; future operating costs; that counterparties to material agreements will continue to perform in a timely manner; that there are no unforeseen events preventing the performance of contracts; availability of key supplies, components, services, networks and developments; the impact of increasing competition; conditions in general economic, agricultural and financial markets; demand for the Company's products; and the continuity of existing business4
SUMMARY
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What is autosteering?
Automatically and accurately steering your tractor
Autosteering is the foundation for precision agriculture
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The untapped opportunity
70% Penetrated CAGR 6%
10% Penetrated CAGR 23%
Large Farms > 1,000 Acres
Small Farms 10 – 1,000 Acres Today’s battleground Untapped Opportunity
Farms WW
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Level the playing field
Large farms succeed because of precision agriculture. Autosteering is the foundation for precision agriculture and a requirement today in helping farms prosper. Autosteering can reduce input costs and labor hours, but autosteering is complex and expensive today.
What if autosteering was available for everyone?
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How farmers get autosteering today
What’s the challenge?
What’s the challenge?
Both models limit adoption ADD TO EXISTING TRACTOR
(Direct-to-Farmer)
BUY WITH NEW TRACTOR
(OEM)
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A new way for farmers to get autosteering
What’s the solution? Simple to add to your tractor
What’s the solution? Comes standard on every tractor
Remove the barriers to adoption ADD TO EXISTING TRACTOR
(Direct-to-Farmer)
BUY WITH NEW TRACTOR
(OEM)
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Remove the barriers - Direct-to-farmer
Simple to add to your tractor
www.handsfreefarm.com
HIGHLY CONFIDENTIAL
Remove the barriers - OEM
Comes standard on every tractor
Autosteer Components Autosteer integrated into the tractor at the factory
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Best positioned to deliver autosteering to all farms
DEEP ROOTS IN GUIDANCE & CONTROL STRONGEST PATENT PORTFOLIO EXPANSIVE GLOBAL PARTNERSHIPS
ü 200 Patents and Pending Patents Worldwide ü 85 Issued US Steering Patents AgJunction technologies are critical components in over 30 of the world’s leading precision Ag manufacturers and solution providers
HIGHLY CONFIDENTIAL
Electric Steering System
The most comprehensive autosteering portfolio
Hydraulic Steering System Steer-by-Wire/CAN Support
OEM / Autosteering Components
Control Software Control System Terminal & User apps Smart Antenna
Direct-to-farmer / All-in-one, DIY
Wheelman Flex Device with Guidance Dashboard Sensor Support Connectivity
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Source: Capital IQ and company data. 1) See appendix for use of non-GAAP information. 2) Financials translated into CAD at an exchange rate of 1.33 CAD/USD. (mrq) – most recent quarter; (ttm) – trailing 12 months.Key Stats
Trading Data (@ August 30, 2019)
Stock Price CAD$0.48 52 Week High/Low $0.91/$0.43
128,537 Shares Outstanding 118.6M Public Float, est. 75% Institutional Holdings 10% Insider Holdings 25%
Valuation Measures
Market Cap CAD$56.9M Enterprise Value2 $31.8M EV/Revenue2 (ttm) 0.4x Book Value per Share2 $0.39
Financial Highlights (@ June 30, 2019)
Revenues (ttm) USD$62.3M Cash & Equivalents (mrq) $18.9M Total Assets (mrq) $49.6M Total Debt (mrq) $0.0M Total Liabilities (mrq) $15.0M Total Equity (mrq) $34.6M
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Revenue Profile
$42 $47 $65
2016 2017 2018
announced a bulk purchase
conclude in Q3 2019
Revenue (millions USD)
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Recent Performance
1) See appendix for EBITDA reconciliation.
Q2 2019
Versus year-ago period
and consolidation of facilities
facilities in Fremont and Brisbane
Air businesses to focus on autosteering
Farm mission
portable autosteering solution
which turns any mobile device into a display for Wheelman products
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Balance Sheet Highlights
future federal taxes
Select Balance Sheet Items
$ Millions (USD)
Jun 30, 2019 Dec 31, 2018 Cash & equivalents $18.9 $21.4 Accounts Receivable $10.6 $8.5 Inventory $4.5 $5.7 Intangible assets $9.9 $9.7 Total assets $49.6 $49.8 Total debt
$15.0 $14.9 Total stockholders’ equity $34.6 $34.9
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Key Takeaways
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Untapped opportunity with 10 million farms for autosteer
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Make autosteer low-cost, simple-to-buy and easy-to-use (Aftermarket)
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Make autosteer an included feature on every new tractor (OEM)
ü
AgJunction has the deepest roots, strongest IP and best partners to win
ü
Sharpened focus with
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EBITDA Reconciliation
AgJunction Inc.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) Reconciliation Three and Six months ended June 30, 2019 and 2018 (Expressed in U.S. dollars) ($000s) 2019 2018 2019 2018 Net income (loss) (682) $ (2,345) $ (567) $ (3,329) $ Interest income (61) (5) (120) (10) Income tax benefit, net 1
267 170 530 347 Amortization 396 318 693 637 EBITDA (79) $ (1,862) $ 538 $ (2,355) $ Three months ended Six months ended June 30, June 30,
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Leadership Team
NAME & TITLE PRIOR EXPERIENCE
Dave Vaughn
President & CEO
Jon Ladd
Senior Advisor
Mark Bittner
SVP Worldwide Sales & Customer Care
Bob Barjesteh
VP IP, M&A & General Counsel
Jeff Morris
Chief Marketing Officer
Brett McMickell
SVP Global Product Development