Slide 1: Fourth Quarter 2024 Financial and Operational Results
FOURTH QUARTER 2024 Financial and Operational Results February 6, 2025
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 ben
Slide 3: Financial Summary
Q4 24 vs. YTD 24 vs. REPORTED Q4 24 YTD 24 Q4 23 YTD 23 NET SALES $2,887.3 (24.0)% $11,661.9 (19.1)% GROSS MARGIN 23.9% (200)bps 24.9% (130)bps OPERATING INCOME (LOSS) $(268.8) (168.4)% $(122.1) (107.2)% OPERATING MARGIN (9.3)% (1,960)bps (1.0)% (1,280)bps FINANCIAL DILUTED EPS $(3.42) $(7.95) $(5.6
Slide 4: Industry Overview
INDUSTRY OVERVIEW December 2024 Year-to-Date Retail Units NORTH AMERICA WESTERN EUROPE(2) BRAZIL(2) Tractors(1) Combines Tractors Combines Tractors Combines Industry Industry Industry Industry Industry Industry (13)% (22)% (6)% (32)% (4)% (33)% 2024 vs. 2023 2024 vs. 2023 2024 vs. 2023 2024 vs. 2023
Slide 5: Production
Q3 2023 EARNINGS RELEASE PRODUCTION* AGCO Production Hours 2024 Production DOWN ~28% vs. 2023 Down 28% Down 15% - 20% Projected Full-Year 2025 Production 2023 2024 2025E DOWN 15 - 20% vs. 2024 Production Hours 5 *Production hours related to the divested Grain & Protein business have been excluded fo
Slide 6: 3 Growth Levers Will Drive Volume and Margin Improvement
3 GROWTH LEVERS WILL DRIVE VOLUME AND MARGIN IMPROVEMENT GLOBAL FENDT FULL-LINE 14%-15% adjusted operating margin at mid-cycle by 2029(1) GLOBAL PRECISION AG PARTS & SERVICES 4%-5% above industry volume growth 75%-100% annual free cash flow conversion(2) FARMER FIRST STRATEGY (1) Adjusted operating
Slide 7: Precision Planting Winter Conference 2025
PRECISION PLANTING WINTER CONFERENCE 2025 PREMIER EVENT FOCUSED SymphonyVision DIFFERENTIATED PRODUCT ON LATEST TECHNOLOGY DELIVERIES IN Q1 2025 AND DEALER NETWORK ▪ Over 4,000 attendees across 10 ▪ Targeted spray solution retrofittable ▪ Product lineup caters to early locations onto all sprayers so
Slide 8: Precision Ag Business
PRECISION AG BUSINESS EXPANDING TOTAL GROWING DRIVING HIGH ADDRESSABLE MARKET TECHNOLOGY STACK MARGIN REVENUE PTx Net Sales (FIXED) ($bn) LAND ADDRESSABLE MARKET $2.0(2) 29% Fertilizer 1% Machinery (Fixed) 2% Machinery Fuel 3% $0.8(1)(2) Crop Protection 4% Seed Innovation Across All Makes 7% 27% Hir
Slide 9: Regional Net Sales Results
REGIONAL NET SALES RESULTS Q4 24 vs. Q4 23 Net Sales Excluding Currency Translation December YTD and Acquisition of a Business* 2024 24% NA SA APA $11.7B (17)% 58% 11% (24)% (28)% (24)% EME (39)% 6% EME SA APA NA Consolidated December YTD YTD 24 vs. YTD 23 Net Sales Excluding Currency Translation an
Slide 10: Net Sales, Adjusted Operating Income and Adjusted Operating Margins
NET SALES, ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING MARGINS Q4 23 to Q4 24 December Year-to-Date $4.5 16% $4.0 $3.8B $1,732.3M 14% $3.2B Adj. Op. Income* ($M) $3.5 12% $2.9B $2.9B Net Sales ($B) Adj. Op. Margin* $3.0 $2.6B 10% 10.7% 10.3% $1,043.3M $2.5 9.6% 9.9% 8% 12.0% $2.0 6% $1.5 8.9% $
Slide 11: Free Cash Flow
Q3 2023 EARNINGS RELEASE FREE CASH FLOW* FOURTH QUARTER SEASONALLY STRONGEST FULL YEAR ▪ Generated $684 million in free cash flow in Q4 2024 FREE CASH FLOW FREE CASH FLOW CONVERSION Source of Cash ▪ Free Cash Flow Conversion was 53% in 2024 vs. 50% in 2023 in $ Mils ▪ Working capital benefit smaller
Slide 12: 2025 Market Outlook
2025 MARKET OUTLOOK Regional Market Outlook – Industry Unit Tractor Sales NORTH AMERICA(1) WESTERN EUROPE(2) BRAZIL(2) 125K 92K Down Large Ag Down ~25% 0%-5% 47K ~Flat Small Ag Down ~0%-5% 2024 2025E 2024 2025E 2024 2025E (1) Excludes compact tractors (2) Amounts based on Company estimates 12
Slide 13: 2025 Key Assumptions
2025 KEY ASSUMPTIONS: 2025 SALES vs. 2024 ENGINEERING EXPENSE Softening Demand ~Flat vs. 2024 (Industry ~85% of Mid-Cycle) Pricing Flat to +1% ADJUSTED Grain & Protein Divested Nov. 1, 2024 OPERATING MARGIN (Net Sales ~$850M in 2024) 7% - 7.5% (3)% Foreign Currency Impact Market Share Gains EFFECTIV
Slide 14: 2025 Outlook
2025 OUTLOOK 2023 OUTLOOK $4.00 – 75% - 100% ~$9.6B $4.50 ~$375M Free Cash Flow Net Sales Capex Adjusted Earnings Conversion(1) Per Share 14 (1) Free Cash Flow Conversion is a non-GAAP measure and is defined as (Cash Flow from Operations less purchases of property, plant and equipment) / Adjusted Ne
Slide 15: Appendix
APPENDIX 15
Slide 16: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions FREE CASH FLOW FREE CASH FLOW CONVERSION Years Ended December 31, Three Months Ended 2024 2023 December 31, 2024 Net cash (used in) operating activities $ 689.9 $ 1,103.1 $ 797.9 Less: purchases of property plant and equipment (393.3) (518.1) (114.0) Free
Slide 17: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages NET SALES Change excluding Change due to currency and Change due to acquisition of a acquisition of a Three Months Ended December 31, currency translation business business % change from 2024 2023 2023 % % % North America $ 546.8 $ 891.
Slide 18: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages NET SALES Change excluding Change due to currency and Change due to acquisition of a acquisition of a Twelve Months Ended December 31, currency translation business business % change from 2024 2023 2023 % % % North America $ 2,850.3 $ 3
Slide 19: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Per Share Amounts Three Months Ended December 31, INCOME (LOSS) FROM OPERATIONS 2024 2023 NET INCOME (LOSS) Income (Loss) Net Income NET INCOME (LOSS) PER SHARE Net Income (Loss) Net Net Income From Income From (1) (1) (1)(2) (1)(2) Operations (Los
Slide 20: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Per Share Amounts Years Ended December 31, INCOME (LOSS) FROM OPERATIONS 2024 2023 NET INCOME (LOSS) Income Net Income NET INCOME (LOSS) PER SHARE Net Income (Loss) Income From Net Income (Loss) From (1) (1) (2) (1) (1)(2) Operations (Loss) Per Sha
Slide 21: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages OPERATING MARGIN Three Months Ended 2024 2023 Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Net Sales $ 2,887.3 $ 2,599.3 $ 3,246.6 $ 2,928.7 $ 3,800.7 Income (Loss) from Operations (268.8) 114.8 (241.7) 273.6 393.1 (1) $ 285.3 $ 143.8 $ 333.
Slide 22: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages OPERATING MARGIN Years Ended December 31, 2024 2023 Net Sales $ 11,661.9 $ 14,412.4 Income (Loss) from Operations (122.1) 1,700.4 (1) Adjusted income from operations $ 1,043.0 $ 1,732.3 (2) (1.0) % 11.8 % Operating margin (2) Adjusted o