Mr. Paul Householder reports

AGI ANNOUNCES RECORD FOURTH QUARTER & ANNUAL RESULTS FEATURING CONTINUED MARGIN STRENGTH, INTRODUCES OUTLOOK FOR 2024 ADJUSTED EBITDA, AND DECLARES FIRST QUARTER 2024 DIVIDENDS

Ag Growth International Inc. has released its financial results for the three months and year ended Dec. 31, 2023.

Fourth Quarter 2023 Highlights

• Revenue1 of $379 million increased by 1% on a year-over-year ('YOY') basis
• Adjusted EBITDA2 of $73 million increased by 43% on a YOY basis
• Adjusted EBITDA margin %3 increased by roughly 570 basis points to 19.3% from 13.6% on a YOY basis
• Net debt leverage ratio3 of 2.8x at Dec 31, 2023 vs 3.7x at Dec 31, 2022 or 3.2x at Sept 30, 2023

Full Year 2023 Highlights

• Revenue1 of $1,527 million increased by 5% on a YOY basis
• Revenue generated by our International businesses now contribute over $500 million or 34% of total revenue
• Adjusted EBITDA2 of $294 million increased by 25% on a YOY basis
• Adjusted EBITDA margin % 3 increased by roughly 320 basis points to 19.3% from 16.1% on a YOY basis

Outlook

• Adjusted EBITDA guidance for 2024 of at least $310 million2
• Order book4 up 25% YOY to $747 million as of December 31, 2023, a record level for the Company
• Significant strength in the International regions of our Commercial segment
• Given the project-based nature of our strengthening Commercial segment order book and the timing of these orders, we anticipate a gradual ramp-up of our 2024 results, gathering momentum as the year progresses

"With Adjusted EBITDA margins at their highest levels since the strategic initiative to enter Commercial and international businesses began about a decade ago, we are highly encouraged by the pace of progress taking hold across the organization," commented Paul Householder, President & CEO of AGI. "By demonstrating another quarter of strong margin performance, we are confident AGI has fully adopted a new operating rhythm that will sustain and stabilize margin levels going forward. Looking ahead, we see a clear path to accelerating growth in 2024 with our order book at record levels and continued demand for equipment to protect and move valuable crops worldwide. Our outlook calls for 2024 Adjusted EBITDA of at least $310 million, representing another record year and continued success."

"The focus on balance sheet deleveraging continues to track towards our stated objectives," added Jim Rudyk, CFO of AGI. "Our net debt leverage ratio again moved downward, now at 2.8x as of year-end which decreased from 3.7x year-over-year and 3.2x quarter-over-quarter. This is the first time in many years that AGI has stabilized this ratio below the 3.0x level. We are on track to achieve our objective of getting this ratio at or below the 2.5x level in 2024. With a proven ability to responsibly manage our cash flow and leverage position, we are eager to closely consider some of the growth investments we have been reviewing throughout 2023."

1 See "BASIS OF PRESENTATION".

2 Historical or forward-looking non-IFRS financial measure. See "Non-IFRS and Other Financial Measures". - Fourth quarter 2023 profit before income taxes of $10.5 million vs fourth quarter 2022 loss before income taxes of $(76.5) million. - Year ended December 31, 2023 profit before income taxes of $86.1 million vs year ended December 31, 2022 loss before income taxes of $(45.3) million.

3 Historical or forward-looking non-IFRS ratio. See "Non-IFRS and Other Financial Measures".

4 Supplementary financial measure. See "Non-IFRS and Other Financial Measures".

Order book

The following table presents YOY changes in the Company's order book[1] as at December 31, 2023:

Farm Segment

Farm segment revenue and Adjusted EBITDA grew by 4% and 44% YOY, respectively, in Q4. Revenue growth was primarily driven by strong demand in the U.S. market. Adjusted EBITDA margin % increased 678 bps to 24.7% YOY in Q4 benefiting from manufacturing efficiency initiatives, a revenue mix weighted towards higher margin portable grain handling equipment, and the impact of the Digital reorganization efforts completed throughout 2023. Looking ahead, the overall Farm order book continues to trend higher YOY. This was driven mostly by Canada where we are seeing sustained levels of high demand for portable equipment and an encouraging uptick in orders for permanent handling and storage solutions.

Commercial Segment

Commercial segment revenue and Adjusted EBITDA decreased 1% and increased 17% YOY, respectively, in Q4. Strong revenue growth in the Asia Pacific Region (APAC) was underpinned by continued success of our operations in India. This was offset by areas with challenging year-over-year comparable results, particularly Canada. Similar to the Farm segment, the Company's operational excellence initiatives including effective management of manufacturing expenses contributed to the Adjusted EBITDA margin % increase of 295 bps to 18.8% YOY in Q4. Looking ahead, the overall Commercial segment order book increased notably YOY, anchored by a significant conversion of quoting activity to secured orders within our International regions, specifically the Europe, Middle East, and Africa region (EMEA). Given the project-based nature of our Commercial segment orders, we anticipate the timing of an acceleration in Commercial results to be most pronounced in the second half of 2024.

First Quarter 2024 Dividend

AGI also announced the declaration of a cash dividend of $0.15 per common share for the first quarter ending March 31, 2024. The dividend is payable on April 15, 2024 to common shareholders of record at the close of business on March 31, 2024. The dividend is an eligible dividend for Canadian income tax purposes. AGI's current annualized cash dividend rate is $0.60 per share.

MD&A and Financial Statements

AGI's audited consolidated financial statements for the year ended December 31, 2023 ("consolidated financial statements") and management's discussion and analysis (the "MD&A") for the three-months and year ended December 31, 2023 can be obtained electronically on SEDAR+ and on AGI's website.

Conference Call

AGI management will hold a conference call on Wednesday, March 6, 2024, at 8:00am ET to discuss its results for the three-months and year-ending December 31, 2023. To participate in the conference call, please pre-register by clicking on the AGI Q4 2023 Conference Call Registration Link and following the instructions. Dial-in details will be provided on-screen and by email in the form of a calendar booking. Registration will remain open until the call has concluded. An audio replay of the call will be available for seven days. To access the audio replay, please dial 1-800-319-6413 if calling from Canada or the U.S. and 1-604-638-9010 internationally. Please quote passcode 0608 for the audio replay.

AGI Company Profile

AGI is a provider of the equipment and solutions required to support the efficient storage, transport, and processing of food globally. AGI has manufacturing facilities in Canada, the United States, Brazil, India, France, and Italy and distributes its product worldwide.

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