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, 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. 2
AGI I OVERVIEW Leading Financial Our Growth Innovation The AGI Brands & Strength Strategy & Future Advantage Operations • System Solutions • $900M • Field to Consumer • 30 market- • Positive market market cap leading brands outlook • Platform • Diversification • $750M+ • Leverage new perspective • 2,500+ annual sales Product offering technologies employees Geography • Farm + and geographies Customer/end user • Dividend of Commercial segments $2.40 per • 25 global • New and expanded • Growth drivers annum manufacturing platforms in place • Global platform facilities • Strong balance • Entrepreneurial • Lean operations • Investment in sheet • Focus on the spirit our people Focus on margins customer 3
TH THE AGI I ADVANTAGE 4
SYSTEMS SO SOLUTIONS FROM FARM TO CONSUMER 5
GLOBAL PLA LATFORM 6
FARM AND COMMERCIAL DIV IVISIO IONS 7
FIN INANCIAL STR TRENGTH 8
ANNUAL TR TRADE SALES AND EBI BITDA $800 $700 $600 $500 ANNUAL $400 $756 TRADE SALES $300 $547 (In C$ Millions) $438 $410 $200 $358 $100 $0 2013 2014 2015 2016 2017 $140 $120 $100 $80 ANNUAL $123 $60 ADJUSTED EBITDA $100 $40 $78 $73 (In C$ Millions) $64 $20 $0 2013 2014 2015 2016 2017 9
IN INTERNATIONAL SALES $160 $140 ▪ International sales strengthened in 2017, driven by the conversion of a strong backlog $120 into sales, the contribution from Global, and $100 AGI’s broadening geographic reach in EMEA, $80 $152 South America, and SE Asia & Australia $60 $107 ▪ A GI’s international sales backlog is currently $102 $92 $40 $78 $72 at record levels, with significant projects $55 $20 underway in EMEA and South America $0 2011 2012 2013 2014 2015 2016 2017 10
PAYOUT RATI TIO 100% 90% • Dividend $2.40 per annum 80% 67% 70% 52% • Current yield ~ 4% 60% (1) (1) 50% 40% • Senior Debt to EBITDA, net of cash = 2.0x 30% 53% 51% 20% • Total Debt to EBITDA, net of cash = 4.4x 10% 0% 2016 2017 Payout Ratio Excluding Realized Loss on FX (1) Realized loss on foreign exchange contracts. Note: Payout ratio and debt ratios are as at December 31, 2017. Debt ratios exclude pro forma EBITDA contributions from recent acquisitions. 11
GROWTH STR TRATEGY 12
FIE IELD TO CONSUMER STR TRATEGY 13
DEMAND DRIV IVERS FEED GRAIN VOLUME FOOD PROCESSING WEATHER COMMODITY SEED PRICES FERTILIZER FARM GLOBAL COMMERCIAL INFRASTRUCTURE GEOGRAPHY 14
U.S. .S. ON-FARM STORAGE CA CAPACITY vs. s. TOTAL PRODUCT CTION 14,000 90% 80% 13,500 70% 13,000 60% 12,500 50% 12,000 40% 11,500 30% 11,000 20% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 On-Farm Capacity On-Farm Capacity / Production Source: USDA, million bushels 15
CORN ACRES S IN 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 2017 Source: StatsCan, acres 16
RECENT ACQUIS ISITIO IONS CMC Industrial Electronics Junge Control Inc. ▪ Founded in 1997 ▪ Founded in 1979 ▪ Office and manufacturing facility in Burnaby, BC, and sales ▪ Based in Cedar Rapids, IA office in Minneapolis, MN ▪ Supplier of precision blending and measurement systems ▪ Supplier of hazard monitoring sensors and systems used in agricultural material handling applications ▪ Products focused primarily on liquid fertilizer blending, which is highly complementary to AGI’s existing fertilizer ▪ Manufacturer and supplier of bin monitoring sensors and handling offering systems ▪ Strong relationships with domestic and multinational customers ✓ 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 17
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 18
BR BRAZIL SN SNAPSHOT 19
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 20
SU SUMMARY 21
MARKET OUTL TLOOK Crop Volumes Canadian Farm Market U.S. Farm Market Outlook: Long Term Outlook: Stable/Positive Outlook: Improving Farm Market Growth RECOVERING North American Commercial Business International Commercial Business Outlook: Stable Outlook: Strengthening 22
GROWTH DRIV IVERS 23
System So Solut lutio ions fr from Farm rm to Co Consumer 24
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