Maximizing Opportunities in Today s Agricultural Industry. Mike McCarty, CEO

Transcription

1 Maximizing Opportunities in Today s Agricultural Industry Mike McCarty, CEO

2 Company Overview

3 Company Overview Who we are Helena History Retail Position Helena Statistics Helena Service Area Helena Products Group International Helena Industries

4 Who We Are Helena is one of the nation s largest formulators / distributors Crop Protection Products Fertilizer & Crop Nutrients Seed and Seed Treatments Financial Services Agronomic Services Toll Manufacturing 4

5 Helena History Helena Chemical Company is founded in Helena, AR Bayer assumes management control of Helena Marubeni acquires 100% of Helena from Bayer Helena celebrates 50 th anniversary.

6 Retail Position Storefronts Crop Protection Fertilizer Seed Custom Application Precision Ag Source: CropLife (December 2002, 2010)

7 Helena Statistics 2011F Total Sales $3.6 Billion Total Assets $1.7 Billion Sales Divisions 17 Sales Locations 334 Number of States with Locations 41 Employees 3,702 Number of Sales People 676 Number of Customers 82,399

8 Helena Service Area Total Potential by State Over 2 Billion Locations by Type 1 Billion to 2 Billion 500 to 1 Billion 100 to 500 Million Corporate Office Distribution Wholesale 0 to 100 Million Business Unit Office Manufacturing Terminal Division Office Retail

9 Helena Products Group The Helena Products Group is responsible for private label and proprietary products. Located at AgriCenter International in Memphis, TN. Functions include: Sales & Marketing Mgmt. Product Development Research & Development Product Registration Communications

10 Helena's International Department markets the company's proprietary products to customers in several countries. International

11 Helena Industries Helena Industries is one of the largest formulators for Helena s basic suppliers. HII manufactures over 1500 products for agriculture and the chemical industry. Helena Industries consists of four plants strategically located near major market areas: Des Moines, IA Cordele, GA Kerman, CA West Helena, AR

12 Industry Overview

13 Long-term Trends driving Agribusiness: Global population growth Desire for Improved Diets Increasing use of biofuels Limited Land for Production Global

14 Global Population Growth Global Population and Agricultural Land Area (ha) Forecast, f Population(billions) Hectare/capita f=forecast Source: FAO, 2009

15 Global Grain Demand Million Tonnes Global Grain Demand, f f=forecast Grain Includes corn, wheat, rice and barley Source: Doane, 2011

16 Global Biofuel Production Global Ethanol and Biodiesel projections through 2018 Billion Litres f=forecast Source: FAO-OECD Outlook (2009)

17 Land Added To Production Global Land Added to Production ( ) and Forecast ( f) Ha reported in millions Source: FAO, Bruinsma, 2009

18 Sources of Production Growth Projected Global Sources of Growth in Crop Production through % Source: FAO, 2009

19 Agribusiness Value Chain

20 U.S. Market Market Segments and Sizes Major Crop Trends Biotech Trends Generic Trends

21 Market Segments & Sizes Seed $15.6 Billion AgChem $10.0 Billion Fertilizer $22.7 Billion Source: Doanes

22 Crop Input Market Trends (In Millions) Source: Doanes

23 Major Crop Trends Acres Source: Doanes

24 Biotech Trends % of Total U.S. Acreage Source: USDA

25 Percent Generics Sales % of Crop Protection Sales

26 U.S. Market Drivers The Economy Commodity Prices Fertilizer Supply/Price AgChem Supply/Price Seed Supply/Price Biofuel Production Crop Mix Generic Products

27 Company Vision and Strategy

28 Vision Statement Our vision is to be the preferred link in the supply chain to people who grow food and fiber, or manage vegetation. People Products Knowledge

29 Helena Strategy Diversified Growth Strategy Retail / Wholesale Geographic Diversity Product Line Diversity Specialty

30 Retail / Wholesale Wholesale Chain Helena Retail Chain Dealers 24% of Business Growers 76% of Business Growers

31 Geographic Diversity

32 Product Line Diversity Distribution Of Helena Sales Proprietary Products 10.7% Other 5.9% Seeds 11.7% Fertilizer 29.4% Crop Protectants 42.3%

33 Product Line Diversity Total Volume (In Millions) $3,800 $3,600 $3,400 $3,200 $3,000 $2,800 $2,600 $2,400 $2,200 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $ F Chemical Fertilizer Seed Proprietary Other

34 Specialty Categories Forestry Industrial Ornamental Turf Aquatics 3 Divisions

35 Keys to Helena s Future We must learn from our setbacks but stay focused on our strategy. We must continue to be adaptable to industry changes. We must know our customers needs and values better. We must always know more than our competition. We must leverage information technology for business success. We must explore emerging technology, looking for a competitive advantage.

36 Information Systems Real-time Information Data Mining E-Business B2B AgGateway AGRIntelligence SSI Helena & Technology

37 B2B Benefits Better order management and decline in revisions to B2B Purchase Orders Price confirmation up front reducing costing errors Reduction in manual invoice entry and keying errors Automatic matching of B2B invoices reducing product allocation and payment errors Ability to notify location of Product Shipment Status Ability to handle Customer Pickup, Consignment Pickup, Direct Ship to Customer, and Special Pricing on Orders.

38 AgGateway Membership Enabled electronic connectivity with Trading Partners (B2B) Ability to identify and share standardized information Improved inventory management and business processes Increased efficiency and cost savings to Distributors, Manufacturers and Customers

39 AGRIntelligence AGRIntelligence is an agronomic-based knowledge & information system designed to process, sort, analyze and convert precision data into practical recommendations.

40 SSI Software Solutions Integrated, LLC was founded in 1981 and is located in Shelbyville, Illinois. Agvance software includes applications for nearly every aspect of an agribusiness operation and has been implemented in over 2,500 locations throughout the USA and Canada.

41 Positioned for the Future We Are Strong! A long term trend of growth Our current positions in the Market A diversified strategy that seeks out geographic and product growth opportunities People Internal culture designed to support field sales Professional Products Complete: Agchem, Fertilizer, Seed, Application, and Financial Services Knowledge Internal / External Training Agronomic experience Information Technology and Systems

42 Questions and Answers Helena Chemical Company... R A vital link in today s agriculture.