IN INVESTOR PRESENTATION April 2018 2018 1 SAFE HARBOUR - - PowerPoint PPT Presentation

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IN INVESTOR PRESENTATION April 2018 2018 1 SAFE HARBOUR - - PowerPoint PPT Presentation

Nov 20, 2022 265 likes •525 views

IN INVESTOR PRESENTATION April 2018 2018 1 SAFE HARBOUR STATEMENT Certain statements contained herein constitute forward-looking statements that reflect our expectations regarding the future growth, results of operations, performance,

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IN INVESTOR PRESENTATION

April 2018 2018

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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 “anticipate”, “believe”, “continue”, “could”, “expects”, “intend”, “plans”, “will” or similar expressions suggesting future conditions or events. Such forward-looking statements reflect our current beliefs and are based on information currently available to us. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from results discussed in the forward-looking statements, including changes in national and local business conditions, crop yields, crop conditions, seasonality, industry cyclicality, volatility of production costs, commodity prices, foreign exchange rates, and competition. These risks and uncertainties are described under “Risks and Uncertainties” in our Annual Report and our Annual Information Form. Although the forward-looking statements contained herein are based on what we believe to be reasonable assumptions, we cannot assure readers that actual results will be consistent with these forward-looking statements and we undertake no obligation to update such statements except as expressly required by law.

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AGI I OVERVIEW

Our Growth Strategy

  • Diversification
  • Field to Consumer
  • Investment in
  • ur people

Product offering Geography Customer/end user Focus on margins

Innovation & Future

  • Positive market
  • utlook
  • Entrepreneurial

spirit

  • Leverage new

technologies and geographies

  • Growth drivers

in place

Leading Brands & Operations

  • Lean operations
  • 2,500+

employees

  • 25 global

manufacturing facilities

  • 30 market-

leading brands

The AGI Advantage

  • System Solutions
  • Platform

perspective

  • Focus on the

customer

Financial Strength

  • $900M

market cap

  • $750M+

annual sales

  • Dividend of

$2.40 per annum

  • Strong balance

sheet

  • Global platform
  • Farm +

Commercial segments

  • New and expanded

platforms

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TH THE AGI I ADVANTAGE

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SYSTEMS SO SOLUTIONS FROM FARM TO CONSUMER

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GLOBAL PLA LATFORM

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FARM AND COMMERCIAL DIV IVISIO IONS

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FIN INANCIAL STR TRENGTH

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ANNUAL TR TRADE SALES AND EBI BITDA

ANNUAL TRADE SALES

(In C$ Millions)

ANNUAL ADJUSTED EBITDA

(In C$ Millions) $358 $410 $438 $547 $756 $0 $100 $200 $300 $400 $500 $600 $700 $800 2013 2014 2015 2016 2017 $64 $78 $73 $100 $123 $0 $20 $40 $60 $80 $100 $120 $140 2013 2014 2015 2016 2017

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IN INTERNATIONAL SALES

▪ International sales strengthened in 2017, driven by the conversion of a strong backlog into sales, the contribution from Global, and AGI’s broadening geographic reach in EMEA, South America, and SE Asia & Australia ▪ AGI’s international sales backlog is currently at record levels, with significant projects underway in EMEA and South America

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$55 $72 $92 $78 $107 $102 $152 $0 $20 $40 $60 $80 $100 $120 $140 $160 2011 2012 2013 2014 2015 2016 2017

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PAYOUT RATI TIO

  • Dividend $2.40 per annum
  • Current yield ~ 4%
  • Senior Debt to EBITDA, net of cash = 2.0x
  • Total Debt to EBITDA, net of cash = 4.4x

67% 52%

53% 51% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2017

Payout Ratio Excluding Realized Loss on FX (1) Realized loss on foreign exchange contracts.

(1) (1)

Note: Payout ratio and debt ratios are as at December 31, 2017. Debt ratios exclude pro forma EBITDA contributions from recent acquisitions. 11

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GROWTH STR TRATEGY

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FIE IELD TO CONSUMER STR TRATEGY

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DEMAND DRIV IVERS

GRAIN VOLUME WEATHER COMMODITY PRICES FARM COMMERCIAL GEOGRAPHY GLOBAL INFRASTRUCTURE FERTILIZER SEED FEED FOOD PROCESSING

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U.S. .S. ON-FARM STORAGE CA CAPACITY vs.

  • s. TOTAL PRODUCT

CTION

Source: USDA, million bushels

20% 30% 40% 50% 60% 70% 80% 90% 11,000 11,500 12,000 12,500 13,000 13,500 14,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

On-Farm Capacity On-Farm Capacity / Production

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CORN ACRES S IN IN WESTERN CANADA

100,000 200,000 300,000 400,000 500,000 600,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: StatsCan, acres

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RECENT ACQUIS ISITIO IONS

CMC Industrial Electronics ▪ Founded in 1997 ▪ Office and manufacturing facility in Burnaby, BC, and sales

  • ffice in Minneapolis, MN

▪ Supplier of hazard monitoring sensors and systems used in agricultural material handling applications ▪ Manufacturer and supplier of bin monitoring sensors and systems ▪ Strong relationships with domestic and multinational customers Junge Control Inc. ▪ Founded in 1979 ▪ Based in Cedar Rapids, IA ▪ Supplier of precision blending and measurement systems ▪ Products focused primarily on liquid fertilizer blending, which is highly complementary to AGI’s existing fertilizer handling offering ✓ Strengthens AGI’s applied technology, control system, and fertilizer platforms ✓ Combined Sales and adjusted EBITDA for the two entities in their most recently completed fiscal years were approximately $15 million and $4 million respectively

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RECENT ACQUIS ISITIO IONS

Danmare Group Inc. ▪ Founded in 2004 ▪ Head office in Vaughan, ON, and recently opened U.S. office in Minneapolis, MN ▪ Provides engineering solutions and project management to the food industry ▪ Specializes in automated systems for pet food, rice & pasta, confectionary, ready-to-eat foods, sauces, and meat processing ▪ Strong relationships with large multinational food companies ✓ Further evolves AGI’s ability to provide complete solutions to a broad customer base ✓ Sales and adjusted EBITDA in its most recently completed fiscal year were $6.4 million and $1.7 million respectively

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BR BRAZIL SN SNAPSHOT

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AGI I BR BRAZIL STATUS

✓Construction Complete ✓Technology Transfer Underway ✓Capable of Producing All AGI Commercial & Farm Products ✓Investment in Sales Team ✓Brazilian Economy and Ag Sector Improving ✓Backlogs Reflect Increasing Farmer Spending

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SU SUMMARY

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Farm Market RECOVERING

North American Commercial Business Outlook: Stable International Commercial Business Outlook: Strengthening

MARKET OUTL TLOOK

Canadian Farm Market Outlook: Stable/Positive U.S. Farm Market Outlook: Improving Crop Volumes Outlook: Long Term Growth

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GROWTH DRIV IVERS

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System So Solut lutio ions fr from Farm rm to Co Consumer

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