Slide 1: First Quarter 2012 Financial and Operational Results
First Quarter 2012 Financial and Operational Results May 1, 2012
Slide 2: Forward Looking Statements
Forward Looking Statements Statements that are not historical facts, including the projections of earnings per share, sales, free cash flow, market conditions, farmer income, harvests, weather, market share, margin improvements, production levels, new product development, factory productivity, inves
Slide 3: Financial Summary
Financial Summary Q1 12 vs Q1 12 Q1 11 Net Sales 2,273.7 +26.5% Gross margin 21.7% +189 bps Adj. op. income* 169.8 +55.9% Adj. op. margin* 7.5% +141 bps Adj. diluted EPS* $1.21 +$0.40 * Reflects adjusted results, which exclude restructuring and other infrequent items. Please see reconciliations to G
Slide 4: Tractor/Combine Production
Tractor/Combine Production Production Units +12% • Production Up 12% in Q1 12 vs. Q1 11 • Strong Increases in Q1 in EAME and NA • Full year 2012 production projected to increase 10-12% vs. 2011 Q1 Q2E Q3E Q4E 2011 Production 2012 Production 4
Slide 5: Industry Overview
Industry Overview March Year to Date Retail Units North America 2012 vs. 2011 Tractors • Industry +1% Combines • Industry (40%) Western Europe 2012 vs. 2011 Tractors • Industry +1% Combines • Industry +23% South America 2012 vs. 2011 Tractors • Industry (7%) Combines • Industry (3%) 5
Slide 6: Regional Net Sales Results
Regional Net Sales Results Q1 2012 $2.3B North America South America 25% 18% APAC 4% Q1 12 vs. Q1 11 Net Sales Excluding Currency Translation* EAME 53% +66% +59% +29% +7% +31% Q1 2011 $1.8B North EAME South APAC North Consol. America America America South 20% APAC America 23% 3% EAME 54% EAME – Euro
Slide 7: Net Sales and Operating Margins
Net Sales and Operating Margins Sales Adj. Op. March YTD $M Margin* $2,500 10% Sales $170M $2,000 8% 7.5% Adj. Op. Margin* Adj. Op. Margin* $1,500 6% $109M 6.1% Adj. Op. Inc.* $1,000 4% $500 2% $0 0% Q410 Q111 Q211 Q311 Q411 Q112 2011 2012 * Reflects adjusted results, which exclude restructuring and
Slide 8: GSI Results
GSI Results Sales (Qtr Ended Mar. 31 ) $169M EAME SA Protein APAC 39% • Q1 12 Contributed $0.09 of EPS • Targeting 2012 EPS accretion NA Grain $0.45 Storage 61% Q1 12 Q1 12 8
Slide 9: Working Capital
Working Capital Working Capital* to Net Sales 12 month trailing average 14% $800,000 12% • Q1 12 inventory build: Working Capital.* − Normal seasonality $600,000 10% − Plant improvements in Working Cap./Sales Europe 8% $400,000 6% 4% $200,000 2% $0 0% Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 * W
Slide 10: Capital Expenditures – Investing for Growth
Capital Expenditures – Investing for Growth Continuing to Invest 2012 Capex Components ~$350M $300M New Products $237M Capex $207M $167M $141M Dep. & Amort. $129M IT/Other $78M $88M Manufacturing 04 05 06 07 08 09 10 11 12E 10
Slide 11: Free Cash Flow
Free Cash Flow* Q1 Free Cash Flow Full-Year Free Cash Flow $426M ● Seasonal working capital build in first $127M of A/R Sales Q1 12 half of year Q1 11 $299M $200M+ ● Second half of year seasonally stronger for free cash flow ● Targeting $200M+ free cash flow in 2012 -$204M despite increase in Capex
Slide 12: 2012 Market Outlook
2012 Market Outlook Regional Market Outlook – Industry Unit Retail Tractor Sales (Volume in Units) North America South America Western Europe Flat to 192K Up 5% 158K Flat Flat to Down 71K 5% 2011 2012E 2011 2012E 2011 2012E 12
Slide 13: 2012 Forecast Assumptions – Summary
2012 Forecast Assumptions – Summary • Sales growth from pricing, GSI acquisition and market share gains partially offset by negative impact of currency – ~+3.5% pricing – ~ (5.0%) negative impact of currency translation • 10-15% increase in engineering expense for new product development and Tier 4
Slide 14: 2012 Outlook
2012 Outlook 2012 Estimates Sales $10.2B-$10.5B Operating margin +50-75 bps EPS ~$5.50 CAPEX ~$350 Million Free Cash Flow* $200 Million+ * Free cash flow is defined as cash used in operating activities less capital expenditures. Please see the reconciliations to GAAP metrics provided in the appendix
Slide 15: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Free Cash Flow $M Three Months Three Months ended ended March 31, March 31, 2012 2011 Net cash used in operating activities $ (280.5) $ (167.4) Less: Capital expenditures (87.1) (36.8) Free cash flow $ (367.6) $ (204.2) Note: Free cash flow is defined as net cash used
Slide 16: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation $M (except per share amts) Three months ended March 31, 2012 2011 Income Earnings Income Earnings From Net Per From Net Per Operations Income(1) Share(1) Operations Income(1) Share(1) As adjusted $ 169.8 $ 120.2 $ 1.21 $ 108.9 $ 80.1 $ 0.81 Restructuring and other inf
Slide 17: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation AGCO Regional Net Sales (in millions) Three Months Ended March 31, % change from 2011 due to % change currency (1) (1) 2012 2011 from 2011 translation (1) North America $ 566.5 $ 359.4 + 57.6% (1.0%) South America 415.4 410.5 + 1.2% (5.8%) EAME 1,199.8 973.0 + 23.3% (
Slide 18: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Net Sales $M Three Months Ended March 31, % change from 2011 2012 at Actual 2012 at Adjusted due to currency (1) Exchange Rates Exchange Rates translation North America $566.5 $570.1 (1.0)% South America 415.4 439.1 (5.8)% Europe/Africa/Middle East 1,199.8 1,250.5 (5.
Slide 19: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Net Sales $M Three Months Ended March 31, Change due to acquisitions % change 2012 2011 from 2011% $ % North America $ 566.5 $ 359.4 57.6% $ 113.7 31.6% South America 415.4 410.5 1.2% 28.5 7.0% Europe/Africa/Middle East 1,199.8 973.0 23.3% 39.0 4.0% Asia Pacific 92.0