Slide 1: Third Quarter 2022 Financial and Operational Results
THIRD QUARTER 2022 FINANCIAL AND OPERATIONAL RESULTS
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Forward-looking statements in this presentation, include statements regarding demand, product development and capital expenditure plans, acquisitions, expansion and modernization plans, production levels, engineering expense, exchange rate impacts, pricing, market share ga
Slide 3: Financial Summary
FINANCIAL SUMMARY $M** Q3 22 vs. YTD 22 vs. Reported Q3 22 YTD 22 Q3 21 YTD 21 Net Sales $3,121.6 14.5% $8,752.5 9.6% Gross margin 23.7% 70bps 23.5% -10bps Operating income $332.1 31.8% $799.6 8.4% Operating margin 10.6% 140bps 9.1% -10bps Diluted EPS $3.18 $0.78 $7.58 $(0.53) Q3 22 vs. YTD 22 vs. A
Slide 4: Industry Overview
INDUSTRY OVERVIEW September 2022 Year-to-Date Retail Units 2022 vs. 2021 Tractors* Industry (6)% North America Combines Industry 3% Tractors Industry (10)% Western Europe Combines Industry (9)% Tractors Industry 9% South America Combines Industry (3)% * Excludes compact tractors Note: Amounts based
Slide 5: 2022 Production
2022 PRODUCTION AGCO Production Hours 6% 12% • Q3 22 production up 12% vs. Q3 21 (8)% • Full year 2022 production expected to be up 6% vs. 2021 • Current production rates on target to meet Q4 production plan Q1 Q2 Q3 Q4E 2021 Production Hours 2022 Production Hours 55
Slide 6: Focus on Growing High Margin Businesses
FOCUS ON GROWING HIGH MARGIN BUSINESSES Global Fendt Full-line Precision Global Parts & Ag Services Business 6 SUSTAINABILITY
Slide 7: You Dreamt It. We Built It. Fendt 700 Vario
YOU DREAMT IT. WE BUILT IT. FENDT 700 VARIO GEN7 Fendt’s Highest Volume Row-Crop Tractor Superior maneuverability – tighter turning radius* Extended FendtONE Smart Ag Features Best in-class fuel efficiency with: New developed 6-cyl. engine (7.5 L) Fendt iD concept with high torque and low engine
Slide 8: Regional Net Sales Results
REGIONAL NET SALES RESULTS Q3 22 vs. Q3 21 Net Sales Excluding Currency Translation* September YTD 2022 $8.8B South North North America EME America APA America Consol. 27% EME 49% South America 16% APA 8% 15% 50% 15% 44% 26% September YTD 2021 $8.0B YTD 22 vs. YTD 21 Net Sales Excluding Currency Tra
Slide 9: Net Sales, Adjusted Operating Income and Operating Margins
NET SALES, ADJUSTED OPERATING INCOME AND OPERATING MARGINS Q3 21 to Q3 22 September YTD Sales Adj. Op. $M Margin* $3,000 12% $2,500 10% $840M $745M $2,000 Adj. Op. Margin* 8% $1,500 6% 9.6 % Adj. Op. Margin* Net Sales $1,000 4% 9.3% $500 2% Adj. Op. Income* $0 0% Q321 Q421 Q122 Q222 Q322 2021 2022 9
Slide 10: Grain & Protein Results
GRAIN & PROTEIN RESULTS Grain / Seed / Protein Production Equipment September 2022 YTD Sales By Region ● September YTD 2022 net sales increased South America ~2% vs. 2021 ‒ Increase in sales of grain and seed equipment of ~20% APA ‒ Decrease in sales of protein production North America EME $839M 57%
Slide 11: Free Cash Flow
FREE CASH FLOW* September YTD Free Cash Full Year Free Cash Flow Flow Free Cash Flow ● Supply chain constraints - related inventory 2022 2021 2022E 2021 build ● Fourth quarter seasonally strongest for free cash flow generation ● Targeting $400-$500M free cash flow in 2022 ($157M) – Supply chain cons
Slide 12: 2022 Market Outlook
2022 MARKET OUTLOOK Regional Market Outlook – Industry Unit Retail Tractor Sales N. America* S. America Western Europe Down 136K ~5% 115K ~Flat 52K Up ~10% 2021 2022E 2021 2022E 2021 2022E 12 *Excludes compact tractors
Slide 13: 2022 Assumptions: Summary
2022 ASSUMPTIONS: SUMMARY + Healthy Large Ag demand • 2022 sales vs. 2021 - Negative currency impact of (8%) + Pricing 10+% + Market share gains • Engineering expense + ~10% vs. ‘21 • Operating margin ~9.9% • Effective tax rate ~28% 13
Slide 14: 2022 Outlook
2022 OUTLOOK Sales Adjusted EPS* CAPEX Free Cash Flow* $12.5 to $12.6B $11.70 to $11.90 ~$325M $400M-$500M Note: Free cash flow is defined as net cash (used in) provided by operating activities less capital expenditures. * See reconciliations in the appendix to this presentation. • See reconciliatio
Slide 15: Focus on Growing High Margin Businesses
FOCUS ON GROWING HIGH MARGIN BUSINESSES Global Fendt Full-line Precision Global Parts & Ag Services Business 15 SUSTAINABILITY
Slide 16: Appendix
16 APPENDIX Asacco Your Agriculture Company
Slide 17: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow $M Note: Free cash flow is defined as net cash (used in) provided by operating activities less capital expenditures. 17
Slide 18: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow $M Full Year Full Year 2022E 2021 Net cash provided by operating activities $725-$825 $660.2 Less: Capital expenditures ~$(325) $(269.8) Free cash flow $400-$500 $390.4 Note: Free cash flow is defined as net cash provided by operating activities less ca
Slide 19: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Net Sales $M Three Months Ended September 30, Change due to currency translation % change from 2022 2021 2021 $ % North America 910.5 638.7 42.6% (5.9) -0.9% South America 571.2 383.3 49.0% (2.5) -0.7% Europe/Middle East 1,390.1
Slide 20: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Net Sales $M Nine Months Ended September 30, Change due to currency translation % change from 2022 2021 2021 $ % North America 2,351.4 1,984.5 18.5% (12.8) -0.6% South America 1,446.8 902.1 60.4% 38.9 4.3% Europe/Middle East 4,2
Slide 21: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) (1) Rounding may impact summation of amounts 21
Slide 22: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) (1) Rounding may impact summation of amounts 22