Agrium Advanced Technologies

Transcription

1 SUSTAINING A GROWING WORLD Agrium Advanced Technologies Andrew Mittag Senior VP and President 1

2 Our Business Agrium Advanced Technologies has four profit centers AGRICULTURE WHOLESALE TURF & ORNAMENTAL WHOLESALE (TOW) DIRECT SOLUTIONS RETAIL DISTRIBUTION AAT INTERNATIONAL Broad Acre Agriculture Specialty Agriculture Professional Market Consumer Market Professional Retail Market Municipal Market Broad Acre Agriculture Specialty Agriculture Professional Market Provides a balanced approach to growing our Enhanced Efficiency Fertilizer (EEF) technology 2 SUSTAINING A GROWING WORLD

3 AAT Timeline and Objectives Core Focus Established the business Bolt-on acquisitions Technology enhancement Value proposition definition Nu-Gro Acquisition Pursell Acquisition AAT Formed New Madrid ESN Plant Direct Solutions Core Focus Going Forward Grow end-user demand Expand ESN capacity Capitalize on international opportunities Seek complimentary acquisitions Develop new technologies Tetra Micronutrients Hanfeng Reese Micronutrients Carseland ESN Building the Foundation Accelerating Growth 3 SUSTAINING A GROWING WORLD

4 Agricultural Market Growth Grow existing customers Acquire new customers 400, , , ,000 0 ESN Volumes F 1st Half 2nd Half Expand into additional broad acre crops Canola, Cotton, Potatoes, Rice North American opportunity: Over 200mm acres Global opportunity: Over 1 billion acres 4 SUSTAINING A GROWING WORLD

5 Specialty Agriculture Market AAT initiative is to position controlled release fertilizers into the fruit, nut and vegetable markets Utilize existing AAT technologies to create a release curve that matches crop demand Leverage longer lasting urea and homogeneous NPK products Enhanced Efficiency Fertilizer (EEF) advantage: Optimize quality and yield Reduce fertilizer applications Restrict potential losses to the environment North American opportunity: 8m acres Global opportunity: Over 250m acres 5 SUSTAINING A GROWING WORLD

6 Professional Market Growth Professional market includes: golf, lawn and landscape, municipal and ornamental markets Leverage existing products and introduce new technologies Focus on lawn and landscape market segment Build on Spread it and Forget it momentum Capitalize on municipal and environmental opportunities Estimated annual fertilizer consumption for the professional market in North America: 1.7m tons 6 SUSTAINING A GROWING WORLD

7 Direct Solutions AAT is seeking to get closer to the end-user Integration of value chain to capture additional revenue and margin Drive demand for AAT technology Industry consolidation North American opportunity: $1.8 billion Global opportunity: $3.6 billion 7 SUSTAINING A GROWING WORLD

8 Consumer Market Largest single US non-farm market for fertilizers Consumer market segment is expected to increase as US population ages Government regulation will continue to drive EEF use in this segment AAT technologies and channels to market provide a strong competitive advantage in the consumer space Estimated annual fertilizer consumption in North America: 1.2mm tons 8 SUSTAINING A GROWING WORLD

9 Innovative Solutions Research and Development Innovation New products Reduction in coating costs Process Innovation XCU development in Sylacauga plant Application Innovation Coated Potash for South East Asian oil palm production XCU products for US rice market ESN for Chinese rice market Smart Nutrition for Specialty Agriculture 9 SUSTAINING A GROWING WORLD

10 International Expansion Separate profit center created to capture international transactions Initial target markets; China, Pacific Rim, Australia Three channels to market strategy Developed a matrix for evaluating existing customers and identifying key gaps Focus on realizing growth potential Efficiencies in customer service, shipping, pricing and other key processes 10 SUSTAINING A GROWING WORLD

11 AAT in China Significant development work since 2005 Heilongjiang Xinjiang AR Tibet AR Gansu Qinghai Yunnan Sichuan Ningxia AR Chongqing Shaanxi Guizhou Guangxi AR Hubei Hunan Inner Mongolia AR Beijing Hebei Shanxi Shandong Henan Jiangxi Guangdong Anhui Tianjin Jiangsu Fujian Hong Kong SAR Macau SAR Liaoning Zhejiang Jilin Shanghai Corn Wheat Rice Potato Rapeseed Sugarcane Cotton Vegetable Hainan 11 SUSTAINING A GROWING WORLD

12 AAT Performance

13 Near-Term $100mm EBITDA Target 120 $ in millions A balanced approach: TOW (24%), Direct Solutions (18%), Agriculture (46%) and International (12%) SUSTAINING A GROWING WORLD

14 SUSTAINING A GROWING WORLD Agrium Inc Lake Fraser Drive SE Calgary, Alberta, Canada T2J 7E8 Telephone (403) Agrium U.S. Inc South Ulster Street, Suite 1700 Denver, Colorado, U.S Telephone (303) NYSE and TSX: AGU agrium.com

15 SUSTAINING A GROWING WORLD Questions?