Post on 11-Oct-2018
AGI Westfield – Rosenort, MB
June 2011
Agenda
• AGI Overview
• Grain Handling 101
• Auger Production 201
• Why would a customer buy a Westfield over the competition?
AGI Overview
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.
Safe Harbour Statement
Manufacturing Facilities: Canada & USA
Manufacturing Facilities: Europe
AGI- Activity by Industry Sectors
Farm
CommercialProcessing
Livestock
Business Drivers
�Primary
�Grain Volume
�Secondary
�Grain Prices
�Storage Practices
Strategy
1. Focused catalogue expansion to create a one stop shop environment to
maximize our “share-of-wallet” from our customer base
2. Lever the catalogue into new and expanding geographies and diversify
risk through geographic expansion
3. Manufacturing investment to support geographic and catalogue
expansions
Building Blocks for Growth
Greenfield expansion Twister bin line
Acquisition: MEPU
Acquisition: Franklin
Acquisition: Tramco
Commercial Customers
� Archer Daniels Midland (ADM)
� Bunge
� Cargill
� Conagra / Gavilon
� Consolidated Grain and Barge (CGB)
� Louis Dreyfus
� Viterra
Adair, IL
Hi Roller: Belt
conveyor
Union Iron: Bucket
elevator and chain
conveyor
Illinois
Batco: Belt
conveyor
Westfield: Auger
Union Iron: Temp
Stor
Kalama, WashingtonUnion Iron: Chain conveyors
and bucket elevators
Hi Roller: Belt conveyors
Australia – North of Adelaide
Twister: Flat
bottom bins
Union Iron: Truss
and tower
Russia - EFKO
Hi Roller:
Enclosed belt
conveyor
On- Farm Customers
1,400 dealer locations across North America
Russia - Ekoniva
Twister:
Flat bottom bins
Batco:
Portable belt conveyors
France
Twister: Flat
bottom bins
Batco: Portable belt
conveyors
Grenem, Alberta
Batco: Belt conveyors HSI: Bucket elevators
Westfield
• Founded in 1950
• AGI’s largest division
• World’s largest manufacturer of grain augers
• Exceptional brand strength
• Dominant market share
Manufactured Products:
• Conventional Augers
• Swing Away Augers
GRAIN HANDLING 101
Conventional Augers
• Single tube, intake to discharge - Multiple drive options
• Used for loading trucks, filling bins on small to mid sized farms
• Retail Price (avg): $3,800
Swing Away Auger
• Loading of bins, larger sized buildings, temporary storage piles
• 3 to 5 year life cycle
• Retail Price (avg): $12,500
Double Branding• Wheatheart product line
• Increased shelf-space in market
• Product differentiation - scissor lift/color/galvanized
• Standard components
• Augers tend to be consumable on most farms
• Wear components that require replacement
• Differentiators include lift mechanisms, color, drive power and surface finish
– However, brand image is a predominate factor
• Trend to higher capacity to match harvest equipment
AUGER PRODUCTION
Plant History
Plant History
Building Information:
• Multiple upgrades/additions since 1950
• Total Size: 190,000 sq ft
• Office: 20,000 sq ft
• Plant Area: 170,000 sq ft
• Property: 40 acres - 10 developed
Employees:
• Non-Unionized
• ~290 Production Employees
• 3 USA warehouses
Westfield Lean
During our tour today you will see examples of:
• Kanban system
• Continuous Flow production
• Setup Reduction success stories
• 5S
• Standardized Work
• Total Productive Maintenance
Kanban
Weldments
Paint LineYard
Supplier
Pre-FabPurchasing
Customer
Vision: Current
Robotic Welder
Robotic Welder
CNC
CNC
Automated Saw
Robotic Welder
Vision: Future
Robotic Welder
Robotic Welder
CNC
CNC
Automated Saw
Robotic Welder
CNC
CNC
Automated Saw
Robotic Welder
Robotic WelderRobotic Welder
CNC
Operations Metrics
• Units Shipped
• Production Hours/Unit Shipped
• % Overtime Worked
• On-Time Delivery to Customer
• Safety
Production Growth Opportunity
• 2007 lean redesign and powder coat line
• Manufacturing capacity available in Rosenort >30%
• Robotic welders providing a 3:1 ratio for output vs. manual welding
Vertical Integration
Full control of incoming material quality/quantity for the majority of items:
• Steel
• Auger Tubes
• Auger Flighting
• Flight Pipes (tubing)
Quality assurance and margins maintained by owning the critical component supply chain.
Entrepreneurial Spirit
Specialized equipment designed in-house:
• Tube Rolling Machine
• Auto-Flight Welders
• Frame Press
• Track Roller
• Custom Die-Sets
• Cable Roller
• Driveguard Roller
• Robotic Jigs/Fixtures
ENABLESENABLES
• Combine multiple manufacturing steps
• Product design capability
• Control quality in-house
• Flexibility to meet changing demand - $
1. Value – Westfield leads the market in innovative designs
2. Manufacturing Excellence – 60 years making augers. Westfield manufacturers more of it’s product in-house than any other brand.
3. Dealer support – Customers know they can count on their dealer for after sales support
Why Would a Customer Buy a
Westfield Over the Competition?
Why Would a Customer Buy a Westfield
Over the Competition?
Distribution & Warehouse Network
• Why is this necessary?– Farmers plan, however, impulse/necessity buying absolutely occurs…
Core Competencies
• WESTFIELD: Grain Handling Equipment 365 days a year…
Why Would a Customer Buy a Westfield
Over the Competition?
The broadest portable grain handling catalog in the industry:
Why Would a Customer Buy a Westfield
Over the Competition?
AGI Family Complementary Products
• Grain handling and storage products in the same organization
Why Would a Customer Buy a Westfield
Over the Competition?
Why Would a Customer Buy a Westfield
Over the Competition?
Production Excellence –Commitment throughout production chain
Why Would a Customer Buy a Westfield
Over the Competition?
Customer Focus
Group Feedback
New Grain Handling
R&D Center
Innovation
THANK YOU!