Slide 1: Fourth Quarter 2022 Financial and Operational Results
FOURTH QUARTER 2022 Financial and Operational Results
Slide 2: Safe Harbor
Q4 2022 EARNINGS RELEASE Q4 2022 EARNINGS RELEASE SAFE HARBOR Forward-looking statements in this presentation, including statements about our strategic plans and initiatives as well as their financial impacts, demand, product development and capital expenditure plans and timing of those plans and ou
Slide 3: Our Purpose, Vision, Key Initiatives and Winning Outcomes
EARNINGS Q4 2022 EARNINGS | INVESTOR RELEASE DAY OUR PURPOSE OUR VISION Farmer-Focused Solutions to Sustainably Feed Our World Trusted Partner for Industry-Leading, Smart Farming Solutions FARMER FIRST ENABLERS Exceptional Customer Experiences High Quality, Smart Solutions Customer-Connected That Re
Slide 4: Financial Summary
Q4 2022 EARNINGS RELEASE REPORTED Q4 22 Q4 22 vs. Q4 21 FY 22 FY 22 vs. FY 21 NET SALES $3,898.9 23.6% $12,651.4 13.6% GROSS MARGIN 24.1% 250bps 23.7% 65bps OPERATING INCOME $465.8 76.4% $1,265.4 26.4% OPERATING MARGIN 11.9% 360bps 10.0% 100bps FINANCIAL DILUTED EPS $4.29 $0.54 $11.87 $0.02 SUMMARY
Slide 5: Industry Overview
Q4 2022 EARNINGS RELEASE NORTH AMERICA WESTERN EUROPE SOUTH AMERICA INDUSTRY OVERVIEW 2022 Full Year Retail Units Tractors* Combines Tractors Combines Tractors Combines Industry Industry Industry Industry Industry Industry (5)% 15% (9)% 10% 3% (2)% 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 2022 vs.
Slide 6: 2022 Production
Q4 2022 EARNINGS RELEASE Q4 2022 EARNINGS RELEASE 2022 PRODUCTION AGCO Production Hours Q4 22 Production UP 6% vs. Q4 21 +3 - 5% +6% Full Year 2023 Production UP 3-5% vs. 2022 2021 2022 2023 6
Slide 7: Focus on Growing High Margin Businesses
Q4 2022 EARNINGS RELEASE GLOBAL FENDT FULL-LINE FOCUS ON GROWING GLOBAL HIGH MARGIN PRECISION AG PARTS & SERVICES BUSINESSES BUSINESS SUSTAINABILITY 7
Slide 8: Precision Ag Update
EARNINGS Q4 2022 EARNINGS | INVESTOR RELEASE DAY PRECISION AG UPDATE ~7,000 Registered Attendees For Precision Planting’s Winter Conference New Panorama App Introduced Product Roadmap Includes: • Retrofit Vision Spraying Products • Radicle AgronomicsTM Soil Testing • New planting features 8
Slide 9: Modernize 20|20 & Fieldview Bridge
Q4 2022 EARNINGS RELEASE Modernize 20|20 & Fieldview Bridge 20|20 Field Data Into Any Platform A simple phone app designed for viewing, sharing, summarizing & analyzing your Precision Planting 20|20 field data 9
Slide 10: Regional Net Sales Results
Q4 2022 EARNINGS RELEASE REGIONAL NET SALES RESULTS Q4 22 vs. Q4 21 Net Sales Excluding Currency Translation* 25% North America Full Year South America 51% 2022 APA 58% $12.7B 38% 33% EME (15)% 23% 17% EME South America APA North America Consol. 7% FY 22 vs. FY 21 Net Sales Excluding Currency Transl
Slide 11: Net Sales, Adjusted Operating Income and Operating Margins
Q4 2022 EARNINGS RELEASE NET SALES, ADJUSTED OPERATING INCOME AND OPERATING MARGINS Q4 21 to Q4 22 Full Year $3.9B $1,308M $3.2B $3.1B $2.9B Adj. Op. Income* ($M) 12.0% $2.7B $1,017M Net Sales ($B) 10.7% 8.6% 9.0% 9.0% 10.3% 9.1% Q421 Q122 Q222 Q322 Q422 2021 2022 Adj. Op. Margin* 11 * Reflects non-
Slide 12: Precision Ag Business
Q4 2022 EARNINGS RELEASE Q4 2022 EARNINGS RELEASE PRECISION AG BUSINESS DRIVING HIGH MARGIN EXPANDING TOTAL REVENUE GROWTH ADDRESSABLE MARKET Innovation Across ADDRESSABLE MARKET All Makes $1B* New Goal 29% Fertilizer Retrofit Channel Globally 1% Machinery (Fixed) 2% $800M+ Machinery Fuel Expansion
Slide 13: Free Cash Flow
Q4 2022 EARNINGS RELEASE Q4 2022 EARNINGS RELEASE FREE CASH FLOW* FULL YEAR FREE CASH FLOW IN-LINE WITH OUTLOOK 13 $450M FOURTH QUARTER SEASONALLY STRONGEST $390M for Free Cash Flow generation -- Generated over $1 billion in Q4 22 SUPPLY CHAIN CONSTRAINTS Related Inventory Build 2021 2022 Targeting
Slide 14: 2023 Market Outlook
Q4 2022 EARNINGS RELEASE 2023 MARKET OUTLOOK Regional Market Outlook – Industry Unit Retail Tractor Sales NORTH AMERICA SOUTH AMERICA WESTERN EUROPE 137K ~Flat 108K ~Flat 73K +0 - 5% 2022 2023E 2022 2023E 2022 2023E 14 *Excludes compact tractors
Slide 15: 2023 Key Assumptions
EARNINGS Q4 2022 EARNINGS | INVESTOR RELEASE DAY ENGINEERING EXPENSE + ~20% vs. ‘22 2023 SALES VS. 2022 OPERATING MARGIN 2023 KEY Healthy Large Ag demand ~10.5% ASSUMPTIONS: Currency Impact of ~(1)% OTHER EXPENSE Pricing ~8% +$50 Million Market Share Gains EFFECTIVE TAX RATE 27% - 28% 15
Slide 16: 2023 Outlook
EARNINGS Q4 2022 EARNINGS | INVESTOR RELEASE DAY 2023 OUTLOOK 75% - 100% ~$14B ~$13.50 ~$375M Free Cash Net Sales EPS Capex Flow Conversion(1) Note: (1) Free Cash Flow conversion is defined as (Cash Flow from Operations less Capex) / Adj. Net Income 16 * See reconciliations in the appendix to this p
Slide 17: Appendix
Q4 2022 EARNINGS RELEASE APPENDIX 17
Slide 18: Grain & Protein Results
Q4 2022 EARNINGS RELEASE Q4 2022 EARNINGS RELEASE GRAIN & PROTEIN RESULTS GRAIN / SEED / PROTEIN PRODUCTION EQUIPMENT FY 2022 SALES FULL YEAR 2022 NET SALES $188K INCREASED ~2% vs. 2021 BY REGION Increase in Sales of Grain and Seed Equipment of ~18% $586K $1,102M $156K South America APA EME $172K De
Slide 19: Non-GAAP To GAAP Reconciliation
Q4 2022 EARNINGS RELEASE Non-GAAP To GAAP Reconciliation FREE CASH FLOW $M Three Months Ended December 31, Years Ended December 31, 2022 2021 2022 2021 Net cash provided by operating activities $ 1,133.3 $ 618.7 $ 838.2 $ 660.2 Less: capital expenditures (117.8) (71.1) (388.3) (269.8) Free cash flow
Slide 20: Non-GAAP To GAAP Reconciliation
Q4 2022 EARNINGS RELEASE Non-GAAP To GAAP Reconciliation (In millions, except per share amounts) NET SALES $M Three Months Ended December 31, Change due to currency translation % change from 2022 2021 2021 $ % North America 823.7 674.7 22.1% (7.8) (1.2)% South America 674.8 405.6 66.4% 34.5 8.5% Eur
Slide 21: Non-GAAP To GAAP Reconciliation
Q4 2022 EARNINGS RELEASE Non-GAAP To GAAP Reconciliation (In millions, except per share amounts) NET SALES $M Years Ended December 31, Change due to currency translation % change from 2022 2021 2021 $ % North America 3,175.2 2,659.2 19.4% (20.6) (0.8)% South America 2,121.6 1,307.7 62.2% 73.4 5.6% E
Slide 22: Non-GAAP To GAAP Reconciliation
Q4 2022 EARNINGS RELEASE Non-GAAP To GAAP Reconciliation (In millions, except per share amounts) Income From Operations Three Months Ended December 31, Net Income 2022 2021 Net Income Per Share Income From Net Net Income Income From Net Income Operations Income(1) Per Share(1) Operations(1) Net Inco
Slide 23: Non-GAAP To GAAP Reconciliation
Q4 2022 EARNINGS RELEASE Non-GAAP To GAAP Reconciliation (In millions, except per share amounts) Income From Operations Years Ended December 31, Net Income 2022 2021 Net Income Per Share Income From Net Net Income Income From Net Income Operations Income(1) Per Share(1) Operations Net Income Per Sha
Slide 24: Non-GAAP To GAAP Reconciliation
Q4 2022 EARNINGS RELEASE Non-GAAP To GAAP Reconciliation (In millions, except per share amounts) Free Cash Flow Conversion Projected Year Ended December 31, 2023 Net cash provided by operating activities $1,125 to $1,375 Less: capital expenditures (~$375) Free cash flow $750 to $1,000 Net income ~$1