Slide 1: Second Quarter 2021 Financial and Operational Results
SECOND QUARTER 2021 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 and timing of those plans, acquisition, expansion and modernization plans and our expectations with respect to the costs and benefits of
Slide 3: Financial Summary
FINANCIAL SUMMARY $M** Q2 21 v YTD 21 v Reported Q2 21 YTD 21 Q2 20 YTD 20 Net Sales $2,879.3 43.5% $5,258.0 33.6% Gross margin 24.0% +250bps 24.0% +160bps Operating income $290.3 198.4% $485.5 145.6% Operating margin 10.1% +520bps 9.2% +420bps Diluted EPS $3.73 $2.80 $5.71 $3.93 Q2 21 v YTD 21 v Ad
Slide 4: Industry Overview
INDUSTRY OVERVIEW June 2021 Year-to-Date Retail Units 2021 vs. 2020 Tractors* Industry 22% North America Combines Industry 13% Tractors Industry 27% Western Europe Combines Industry 18% Tractors Industry 35% South America Combines Industry 35% 4 * Excludes compact tractors
Slide 5: 2021 Production
2021 PRODUCTION AGCO Production Hours +25% +40% (19)% • Q2 21 production up ~40% vs. Q2 20 • Full year 2021 production expected to be up 15-20% vs. 2020 Q1 Q2 Q3E Q4E 2020 Production 2021 Production 5
Slide 6: Regional Net Sales Results
REGIONAL NET SALES RESULTS June YTD 2021 $5.3B Q2 21 vs. Q2 20 Net Sales Excluding Currency Translation* North America South North 26% EME America APA America Consol. South EME America 56% EME 8% South America 57% APA 10% 7% APA 8% 34% 53% 40% 29% 35% June YTD 2020 $3.9B YTD 21 vs. YTD 20 Net Sales
Slide 7: Net Sales, Adjusted Operating Income and Operating Margins
NET SALES, ADJUSTED OPERATING INCOME AND OPERATING MARGINS Q2 20 to Q2 21 June YTD Sales Adj. Op. $M Margin* $3,000 12% $492M $2,500 10% 9.3 % $2,000 8% Adj. Op. Margin* Adj. Op. Margin* $222M $1,500 6% 5.7% Net Sales $1,000 4% Adj. Op. Income* $500 2% $0 0% Q220 Q320 Q420 Q121 Q221 2020 2021 7 * Re
Slide 8: Grain and Protein Results
GRAIN AND PROTEIN RESULTS Grain / Seed / Protein Production Equipment June 2021 YTD Sales By Region ● June YTD 2021 net sales increased ~24% vs South America 2020 on a constant currency basis ‒ Increase in sales of grain and seed equipment of ~23% APA ‒ Increase in sales of protein production North
Slide 9: Liquidity / Free Cash Flow
LIQUIDITY / FREE CASH FLOW* June YTD Free Cash Flow Liquidity 1H 21 1H 20 ● Closely managing costs and cash expenditures ● Paid an annual variable special dividend ● Repaid $276M of term loan facility during ($246M) Q1 21 ($339M) ● Share repurchases planned in 2H 21 ● Positioned for strong free cash
Slide 10: 2021 Market Outlook
2021 MARKET OUTLOOK Regional Market Outlook – Industry Unit Retail Tractor Sales N. America* S. America Western Europe Up ~10% 137K Up ~20% 100K 52K Up ~15% 2020 2021E 2020 2021E 2020 2021E 10 *Excludes compact tractors
Slide 11: 2021 Assumptions: Summary
2021 ASSUMPTIONS: SUMMARY • 2021 sales vs. 2020 + Improved end market demand + Positive currency impact of ~3% + Pricing ~4.5% + Market share gains • Engineering expense +20% vs ‘20 • Operating margin Up ~200 bps vs ‘20 • Effective tax rate 27-29% 11
Slide 12: 2021 Outlook
2021 OUTLOOK Sales Adjusted EPS CAPEX Free Cash Flow* $11.3B to $11.5B ~$9.50 ~$300M $450M-500M • See reconciliation to GAAP metrics in the appendix of this presentation. 12 • Note: Free cash flow is defined as net cash provided by operating activities less capital expenditures.
Slide 13: Appendix
APPENDIX 13
Slide 14: Non-GAAP to GAAP Reconciliation: Free Cash Flow
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow $M Six months Six months ended ended June 30, June, 2021 2020 Net cash used in operating activities $ (124.9) $ (221.6) Less: Capital expenditures (120.6) (117.5) Free cash flow $ (245.5) $ (339.1) Note: Free cash flow is defined as net cash (used in) p
Slide 15: Non-GAAP to GAAP Reconciliation: Free Cash Flow 2021E
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow $M Full Year 2021E Net cash provided by operating activities $750 - $800 Less: Capital expenditures $(300) Free cash flow $450 - $500 Note: Free cash flow is defined as net cash (used in) provided by operating activities less capital expenditures. 15
Slide 16: Non-GAAP to GAAP Reconciliation: Net Sales, Three Months
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Net Sales $M Three Months Ended June 30, Change due to currency translation % change from 2021 2020 2020 $ % North America $ 734.7 $ 555.8 32.2 % $ 18.1 3.3 South America 278.3 178.5 55.9 % 5.1 2.9 Europe/Middle East 1,635.2 1,1
Slide 17: Non-GAAP to GAAP Reconciliation: Net Sales, Six Months
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Net Sales $M Six Months Ended June 30, Change due to currency translation % change from 2021 2020 2020 $ % North America $ 1,345.8 $ 1,107.7 21.5 % $ 23.8 2.1% South America 518.8 332.4 56.1 % (37.3) (11.2)% Europe/Middle East 2
Slide 18: Non-GAAP to GAAP Reconciliation: Three Months Income
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Three Months Ended June 30, 2021 2020 Income From Net Income Income From Net Income Operations Net Income Per Share(1) Operations(1) Net Income Per Share As reported $ 290.3 $ 282.8 $ 3.73 $ 97.3 $ 69.7 $ 0.93 Goodwill impairmen
Slide 19: Non-GAAP to GAAP Reconciliation: Six Months Income
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Six Months Ended June 30, 2021 2020 Income From Net Income Income From Net Income Operations Net Income Per Share Operations(1) Net Income Per Share As reported $ 485.5 $ 433.6 $ 5.71 $ 197.7 $ 134.4 $ 1.78 Goodwill impairment c