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AMERICAN VANGUARD. 2014 Shareholder Meeting June 4, 2014. Safe Harbor Statement.
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AMERICAN VANGUARD 2014 Shareholder Meeting June 4, 2014
Safe Harbor Statement This presentation contains, in addition to historical information, forward-looking statements. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause such a difference include, but are not limited to, those described in the Company’s Annual Report, on Form 10-K, and in other SEC filings.
Four Important Questions • What happened? • Why did it happen? • Can it be fixed? • What does the future hold?
AMVAC Total Sales $381M $78M AMVAC Total CSI Sales AMVAC Total Net Sales
AMVAC CSI Acres ResistanceRecognized Force 2004 Aztec 4.67 2001 Counter 2006 Lorsban 2003 Smart Choice Aztec 2.1 2010 SmartBox System Fortress 2000 GMO’s
AMVAC CSI Acres 2014 AMVAC Total CSI Sales($) Total CSI Acres
AMVAC CSI Acres Projected CSI Acres Adjusted CSI Acres AMVAC Total CSI Sales
Tony Zatylny Director of Marketing
Distribution Channel • Obtaining Accurate Information can be Challenging • 15 Distributors sell our CSI’s • Distribution sells to + 3,000 Retailers • Retailers sell to 500,000+ Growers 3,000 Retailers Distributor 500,000+ Growers
EDI Recorded Monthly Movement • Electronic Data Interchange (EDI) records movement of product from Distribution to Retail and also records returns from Retail to Distribution. 2012 2013 2014
David Johnson VP, Chief Financial Officer
Financial Review • Inventory • Factory Costs and Recover • Working Capital and Borrowing Capacity • Operating Expenses
Peter Porpiglia Director of Product Development
Yield Advantage of Soil Applied InsecticidesUniversity and On-Farm Demo Trials – NE, SD, IA, IL, IN, MN, WI, OH(2011 -2013) One Third Trials Average Increase +20 Bu/A Bu/A Increase
Summary of 13 Trials in IA and IL, 2007-2012(Moderate to High Rootworm Infestation Levels in Trials) Trait hybrids evaluated include the Agrisure®, Herculex®and YieldGard®trait families. Insecticides applied to trait hybrids include Aztec®, Counter®, Fortress®, Lorsban®or SmartChoice® at full or reduced rates.
Corn Rootworm Trial - YieldUniversity of Illinois YieldGard® VT vs. VT plus Counter® 15G, 2007 + 12.3 + 3.3 YieldGard® VT hybrid evaluated alone and with Counter®15G SmartBox® applied T-band at 6.5 lb/A at each location.
Jim Lehman VP of Sales
AMVAC CSI Acres 2014 Total CSI Acres
2013 Acres 2013 CSI Purchases 5.8M Ac Less Excess Distributor Inventory 1.2M Ac Less Inventory at Retail & Grower 500K Ac Adjusted Actual 2013 on Ground Sales 4.1M Ac
External CSI Market Factors 120 100 80 60 40 20 0 • Seed Traits • CRW Resistance • Worldwide Corn Demand • Crop Rotation • Seed Treatments • Corn Price Corn Price Corn Acreage
Glen Johnson Sr. VP Business Development and Marketing
Liquid Corn Soil Insecticide Products At-Plant Liquid Fertilizer Compatible Launched in 2014 Current Pipeline
High Strength Granular Products SmartBox® / Lock’N Load® Systems 5G 15G 4.67G 9.34G Important Products for SIMPAS
SmartBox® SmartBox®, the only granular application tool that can accurately apply low rates and easily be turned on/off from tractor cab
SmartBox®Sales Ave Row Units/Yr#Rows/System 2000-2011 4,300 12 2012-2014 13,600 16+
SmartBox® - Crops • SmartBox has been used on crops such as corn, cotton, sugar beets, sugarcane, peanuts, potatoes, and other vegetable and row crops,
Future Development Projects • Work with major planter manufactures to improve and streamline installation on their planters • Incorporating GPS mapping and prescription application capabilities • Precision Placement Technology • Universal valve for all equipment options • SmartBox®, Lock‘N Load®, Ultima® • Disposable transfer container • Eliminate need for returning and storage of transfer containers • Developing a self calibrating system • Use of sensors to monitor and adjust application rates while in use
simpas TM Smart Integrated Multi-Product Precision Application System
Each meter is calibrated at 41.5 grams at 5mph with three different rates 2.0oz 3.0oz 5.0oz
SIMPAS Micronutrient Seed Insecticide Biological
Delivery & Application Systems • Successfully address mixer, loader, and applicator safety concerns, spray drift issues and minimize environmental impact • Worldwide leader
LockʼN Load®System & Sistema CerradoTM USA Central America Propanil 80CHS
Ultima® Europe Central America
SwissMex Backpack Sistema CerradoTM Central America
EZ LoadTM USA THIMET® 20G
SmartDrop™ USA Reduces odor and drift
AMVAC’s Potato Portfolio • Insecticides • Ecozin® Plus • Ambush® • Slug & Snail • Deadline® • Fungicide • - Blocker™ Insect Control in Buildings and Equipment - Nuvan® Insect Shield Above Ground Application Seed Treatment - Rejuvenate™ Sprout Control - SmartBlock™ • Soil Fumigation • Vapam® • K-Pam® • Insecticides • Thimet® • Mocap® • Fungicides • Blocker™ • Insecticides • Thimet® Below Ground Application
Peanuts Thimet is an major product for control of thrips in peanuts.
Sugar Crops Sugarcane • Controls wireworm in sugarcane to optimize stands and sugar yield. Sugar beets • Controls sugar beet root maggot which is a key pest for sugar beets.
AMVAC Environmental Products • Public Health • Mosquito Control • Dibrom® – Vector Control -Dengue Fever Project • BTI Briquettes- larvacide • Bed Bugs • Nuvan® Strips • General Pest Control • Envance Products
AMVAC Environmental Products • Turf and Ornamentals • Disease Control in Turf • Blocker™ for snow mold control • Combination products for resistance management and reduced rates of PCNB • Soil Sterilant • Basamid® fumigant for golf course renovation, tree replacement and potting soil
Ad de Jong Managing Director, AMVAC BV Netherlands
International GROWTH: 2010 – 2013 +79%
International • Registrations for 22 different active ingredients with many formulations • Sales in many crops; below most importantBanana, Pineapple, Potato, Vegetable, Fruit, Coffee, Corn, Cotton, Sugarcane • Registrations in more than 50 countries
International International Growth Strategy based on six pillars: • Organic Growth - Label extension for current portfolio • New product development - SmartBlock • Acquisitions - an important driver • Distribution rights - New development for AMVAC international • New market penetrations – Brazil, Eastern Europe, Asian Countries • AMVAC Environmental Products - ENVANCE Strategy should grow business from 2014 to 2020 by approximately 55% (excluding Acquisitions)