2016_AGM_Deck

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 forwardlooking
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.
1

2

SALES COMPOSITION
2010 2015 2016 Q1
32%
68%
46%
46%
46%
42%
54% 54%
54%
54%
58%
Farm
Commercial
Farm Farm
Farm
Farm
Westeel Westeel
Westeel Westeel
Commercial Commercial
Commercial Commercial
Farm
Westeel
Commercial
3

FINANCIAL OVERVIEW

120.0
113.7
100.0
38.1
Q1 TRADE SALES
(In C$ Millions)
80.0
60.0
40.0
20.0
65.5
53.4
78.5
86.6
75.6
0.0
2012 2013 2014 2015 2016
Acquisitions
25.0
20.0
19.8
Q1 ADJUSTED EBITDA
(In C$ Millions)
15.0
10.0
5.0
12.2
7.5
14.0
17.3
6.5
13.3
0.0
2012 2013 2014 2015 2016
Acquisitions
5

OUTLOOK 2016 FARM

U.S. CORN AND SOYBEAN
PLANTING INTENTIONS
(In ‘000 acres)
200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
77198
76533
83701
82236
82650
75718 77451 77404 74976
76895
67140
90454 85982 86482 88192 91936
97155 95365
90597 87999
93601
78019
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F
Source: USDA
Corn
Soybeans
U.S. CORN AND SOYBEAN
PRODUCTION
(In Billion Bushels)
20
18
16
14
12
10
8
6
4
2
0
3.96
3.26
3.98
3.32
2.68
3.38
2.92
3.05
3.2
2.97
13.99 14.41
13.04
13.11 13.65
12.02
12.54 12.31
10.53
10.73
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: USDA
Corn
Soybeans
7

CANADIAN PULSE CROP
SEEDED ACRES
(In mm acres)
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
4,280
3,680
3,985
3,730 3,325
5,140
3,950
2,515 2,720 3,120
2012 2013 2014 2015 2016F
Source: Producer.com
Lentils
Dry Peas
50
45
LENTIL PRICE
(2013-2016 in USD)
40
35
30
25
20
Source: Bloomberg
15
2013-01-02 2014-01-02 2015-01-02 2016-01-02
8

OUTLOOK 2016 COMMERCIAL

INTERNATIONAL SALES BY REGION
10

RECENT INITIATIVES - FERTILIZER

CANADIAN FERTILIZER CONSUMPTION
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
CAGR: 1.7%
58.90 kg/ha
7.70
15.00
36.20
74.40 kg/ha
7.60
15.80
51.00
0.00
2000 2014
Nitrogen Phosphate Potash
Source: FAO-UN
12

WESTEEL COMMERCIAL SMOOTHWALL
1615 Quad Batch Bin
1620 Quad Batch Bin
1620 Fertilizer Bin
13

FOLLOW-ON ACQUISITION - VIS
§ Acquisition of VIS in November 2015 -
positions AGI as a significant player in the
fertilizer handling, storage and distribution
market in Western Canada
§ Significant synergies by bundling Westeel
Smoothwall bins with commercial fertilizer
distribution equipment
§ Complementary sales cycle weighted to the
beginning of the year
14

FOLLOW-ON ACQUISITION - NUVISION
§ Western Canadian leader in design and
construction of fertilizer sites
§ Allows AGI to offer turnkey design,
manufacturing, assembly and installation of
fertilizer distribution facilities
§ Focus on small to medium sized retail
fertilizer distribution
§ Provides a new distribution channel for
Westeel Commercial Smoothwall bins and
VIS fertilizer handling equipment
15

AGI FERTILIZER PLATFORM
§ Kacey making image
16

RECENT INITIATIVES - BRAZIL

AGRICULTURE IN BRAZIL
250
TOTAL GRAIN PRODUCTION
(mm tons)
ESTIMATED MARKET SHARE *
200
150
123
132
144
135
149 163
166
189 194
202
3% 5%
3%
100
50
0
05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15
ILLUSTRATIVE: SOYA PRODUCTION & LOGISTIC COST
(US$/T)
Soybean Brazil USA Difference
Cost of Production 187 238 51
Transport 97 26 71
Subtotal 284 264 20
Port 7 3 4
Total 291 267 24
10%
60%
16%
GSI
Entringer
Becker
CASP
Comil
Page
Kepler Weber
3%
Overall Market Size: ~$750M CAD *
*
Management Estimate
18

ENTRINGER AND AGI - 2016
§ Greenfield Plus
§ Small acquisition focused on product lines, which balances risk of entering
new market
§ Enhance business of Entringer through access to AGI resources
§ Leverage Entringer product line, operations and engineering teams,
distribution network, installation and assembly capabilities, sales backlog,
customer relations, customer service and quality track record
§ AGI Managing Director in Brazil - Wilfried Toth, former leader of Kepler
Weber, with extensive experience in constructing greenfield manufacturing
facilities in Brazil for foreign companies
§ Investment in new manufacturing facility
§ State-of-the-art facility with focus on productivity
§ Manufacture full suite of AGI Commercial and Entringer product line
§ Leverage AGI brand strength with multi-national grain handlers
§ Approximate cost of facility USD $25 million
§ Market share growth in Farm and Commercial sectors
19

LEAN MANUFACTURING

22
476 HOURS PER TRUCKLOAD

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