Slide 1: First Quarter 2024 Financial and Operational Results
FIRST QUARTER 2024 Financial and Operational Results May 2, 2024
Slide 2: Safe Harbor
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 our expectations with respect to the costs and benef
Slide 3: Financial Summary
Q1 24 vs. REPORTED Q1 24 Q1 23 NET SALES $2,928.7 (12.1)% GROSS MARGIN 26.3% 70bps OPERATING INCOME $273.6 (29.4)% OPERATING MARGIN 9.3% (230)bps FINANCIAL DILUTED EPS $2.25 $(0.85) SUMMARY $M** ADJUSTED Q1 24 Q1 24 vs. Q1 23 ADJ. OPERATING $280.8 (27.8)% INCOME* ADJ. OPERATING 9.6% (210)bps MARGIN*
Slide 4: Industry Overview
INDUSTRY OVERVIEW March 2024 Year-to-Date Retail Units NORTH AMERICA WESTERN EUROPE(2) SOUTH AMERICA(2) Tractors(1) Combines Tractors Combines Tractors Combines Industry Industry Industry Industry Industry Industry (9)% (17)% (8)% (30)% (18)% (40)% 2024 vs. 2023 2024 vs. 2023 2024 vs. 2023 2024 vs.
Slide 5: Production
Q3 2023 EARNINGS RELEASE PRODUCTION AGCO Production Hours Q1 2024 Production -16% DOWN ~16% vs. 2023 Projected Full-Year 2024 Production Q1 Q2E Q3E Q4E DOWN 12% - 15% vs. 2023 Production 2024 Production Plan 2023 5
Slide 6: 3 Growth Levers Will Drive Volume and Margin Improvement
3 GROWTH LEVERS WILL DRIVE VOLUME AND MARGIN IMPROVEMENT GLOBAL FENDT 12% ADJUSTED OPERATING MARGIN FULL-LINE AT MIDCYCLE BY YEAR 2026(1) PRECISION GLOBAL 4% - 5% ABOVE INDUSTRY VOLUME AG PARTS & GROWTH SERVICES 75% - 100% ANNUAL FREE CASH FLOW CONVERSION(2) SUSTAINABILITY (1) Adjusted operating mar
Slide 7: PTx Precision Agriculture
P T x Precision Advanced Multiplication agriculture technologies We’re increasing the impact we create by bringing our technologies and solutions together in seamless, intelligent and farmer-centric ways. 7
Slide 8: Building the PTx Brand
po @ CA TECHNOLOGIES. ® Trimble. Agriculture ve bi NY Prx Trimble ilberry = muvter” ELEKTRONIK A TRIMBLE COMPANY V Precision Planting HEADSIGHT Wy Precision Planting IntelligentAg™ AGCO Your Agriculture Company
Slide 9: Precision Ag Business
PRECISION AG BUSINESS EXPANDING TOTAL GROWING DRIVING HIGH ADDRESSABLE MARKET TECHNOLOGY STACK MARGIN REVENUE $2B* Goal (FIXED) LAND ADDRESSABLE MARKET 29% Fertilizer Global Technology $1.3B* 1% Machinery (Fixed) Mixed Fleet Across 2% Machinery Fuel Leader Distribution the Crop Cycle 3% Crop Protect
Slide 10: Regional Net Sales Results
REGIONAL NET SALES RESULTS Q1 2024 25% NA SA APA $2.9B 59% 10% EME Q1 24 vs. Q1 23 Net Sales Excluding Currency Translation* 6% 0% (42)% (16)% (13)% (21)% Q1 2023 28% EME SA APA NA Consolidated NA SA APA 51% $3.3B EME 15% 6% 10 NA – North America SA – South America EME – Europe/Middle East APA – Asi
Slide 11: Net Sales, Adjusted Operating Income and Adjusted Operating Margins
NET SALES, ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING MARGINS Q1 23 to Q1 24 March Year-to-Date $4.5 16% $4.0 $3.8B $3.8B 14% $3.5B $388.8M $3.3B Adj. Op. Income* ($M) $3.5 13.1% 12.6% $2.9B 12% Net Sales ($B) Adj. Op. Margin* $3.0 11.7% 10% $280.8M $2.5 10.7% 9.6% 8% 11.7% $2.0 6% 9.6% $1.5 4
Slide 12: Free Cash Flow
Q3 2023 EARNINGS RELEASE Q1 FREE CASH FLOW FREE CASH FLOW* 2023 2024 Source / (Use) of Cash in $ Mils $(465)M $(682)M FIRST QUARTER SEASONALLY WEAKEST ▪ Used $465 million in Q1 2024, $217 million less than Q1 2023 ▪ Normal seasonal working capital build ▪ Second half of year is strongest for cash fl
Slide 13: 2024 Market Outlook
2024 MARKET OUTLOOK Regional Market Outlook – Industry Unit Retail Tractor Sales NORTH AMERICA(1) WESTERN EUROPE(2) SOUTH AMERICA(2) 133K Down 106K 5%-10% Down ~10% 67K Down ~20% 2023 2024E 2023 2024E 2023 2024E (1) Excludes compact tractors (2) Amounts based on Company estimates 13
Slide 14: 2024 Outlook Changes versus February 6, 2024
2024 OUTLOOK CHANGES VERSUS FEBRUARY 6, 2024 In Billions, Except Percentages and Per Share Amounts AGCO Excluding PTx Trimble Impacts PTx Trimble Impacts Outlook Industry, Outlook Feb. 6, Currency, Interest PTx May 2, 2024 & Other ( 1) Tax Rate Subtotal Expense Trimble ( 2 ) 2024 Net Sales ~$13.6 $(
Slide 15: 2024 Key Assumptions
2024 KEY ASSUMPTIONS: ENGINEERING EXPENSE Up ~3% vs. 2023 2024 SALES vs. 2023 Softening Demand ADJUSTED OPERATING MARGIN 1% Adverse Foreign Currency Impact ~11.3% Pricing ~1.0% Market Share Gains EFFECTIVE TAX RATE ~28% - 29% 15
Slide 16: 2024 Outlook Inclusive of PTx Trimble
2024 OUTLOOK INCLUSIVE OF PTx TRIMBLE 2023 OUTLOOK ~$12.00 75% - 100% ~$13.5B Adjusted Earnings ~$475M Free Cash Flow Net Sales Capex Per Share Conversion(1) 16 (1) Free Cash Flow Conversion is a non-GAAP measure and is defined as (Cash Flow from Operations less purchases of property, plant and equi
Slide 17: Appendix
APPENDIX 17
Slide 18: Grain & Protein Results
Q3 2023 EARNINGS RELEASE GRAIN & PROTEIN RESULTS Grain / Seed / Protein Production Equipment MARCH YTD 2024 SALES MARCH 2024 YTD NET SALES $30M DECREASED ~20% vs. MARCH 2023 BY REGION $24M SA Decrease in Sales of Grain and Seed Equipment of ~19% $205M APA $129M $22M EME Decrease in Sales of Protein
Slide 19: Non-GAAP to GAAP Reconciliation: Free Cash Flow
NON-GAAP TO GAAP RECONCILIATION In Millions FREE CASH FLOW Three Months Ended March 31, 2024 2023 Net cash (used in) operating activities $ (370.0) $ (557.1) Less: purchases of property, plant and equipment (95.0) (125.3) Free Cash Flow $ (465.0) $ (682.4) 19 Note: Free cash flow is defined as net c
Slide 20: Non-GAAP to GAAP Reconciliation: Net Sales
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages NET SALES Three Months Ended March 31, Change due to currency translation % change from 2024 2023 2023 $ % North America $ 729.6 $ 923.1 (21.0)% $ 3.1 0.3 % South America 303.4 503.8 (39.8) % 11.4 2.3 % Europe/Middle East 1,729.0 1,703.
Slide 21: Non-GAAP to GAAP Reconciliation: Income, Net Income, EPS
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Per Share Amounts INCOME FROM OPERATIONS NET INCOME NET INCOME PER SHARE Three Months Ended March 31, 2024 2023 Income From Net Net Income Income From Net Net Income Operations Income (1) Per Share (1) Operations (2) Income (1)(2) Per Share(1)(2) A
Slide 22: Non-GAAP to GAAP Reconciliation: Operating Margin
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages OPERATING MARGIN Three Months Ended March 31, 2024 2023 Net sales $ 2,928.7 $ 3,333.5 Income from operations 273.6 387.3 Adjusted income from operations(1) $ 280.8 $ 388.8 Operating margin(2) 9.3 % 11.6 % Adjusted operating margin(2) 9.
Slide 23: Non-GAAP to GAAP Reconciliation: Free Cash Flow Conversion
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages FREE CASH FLOW CONVERSION Projected Year Ended December 31, 2024 Net cash provided by (used in) operating activities $1,150 to $1,375 Less: capital expenditures (~$475) Free Cash Flow $675 to $900 Adj Net Income ~$900 Free Cash Flow Con