Slide 1: Third Quarter 2021 Financial and Operational Results
THIRD 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, acquisitions, expansion and modernization plans, production levels, engineering expense, exchange rate impacts, pricing, market share ga
Slide 3: Financial Summary
FINANCIAL SUMMARY $M** Q3 21 v YTD 21 v Reported Q3 21 YTD 21 Q3 20 YTD 20 Net Sales $2,725.1 9.1% $7,983.1 24.1% Gross margin 23.0% -20bps 23.7% +90bps Operating income $251.9 12.5% $737.4 74.9% Operating margin 9.2% +30bps 9.2% +270bps Diluted EPS $2.40 $0.31 $8.11 $4.25 Q3 21 v YTD 21 v Adjusted
Slide 4: Industry Overview
INDUSTRY OVERVIEW September 2021 Year-to-Date Retail Units 2021 vs. 2020 Tractors* Industry 17% North America Combines Industry 20% Tractors Industry 18% Western Europe Combines Industry 14% Tractors Industry 23% South America Combines Industry 28% 4 * Excludes compact tractors
Slide 5: 2021 Production
2021 PRODUCTION AGCO Production Hours +25% +40% +14% (19)% • Q3 21 production up ~14% vs. Q3 20 • Full year 2021 production expected to be up 20-25% vs. 2020 Q1 Q2 Q3 Q4E 2020 Production 2021 Production 5
Slide 6: Regional Net Sales Results
REGIONAL NET SALES RESULTS September YTD 2021 $8.0B Q3 21 vs. Q3 20 Net Sales Excluding Currency Translation* North America South North 25% EME America APA America Consol. South EME America 56% EME 8% South America 57% APA 11% 7% APA 8% 3% 37% (2%) 9% 8% September YTD 2020 $6.4B YTD 21 vs. YTD 20 Ne
Slide 7: Net Sales, Adjusted Operating Income and Operating Margins
NET SALES, ADJUSTED OPERATING INCOME AND OPERATING MARGINS Q3 20 to Q3 21 September YTD Sales Adj. Op. $M Margin* $3,000 12% $745M $2,500 10% 9.3 % $2,000 Adj. Op. Margin* 8% $447M Adj. Op. Margin* $1,500 6% 7.0% Net Sales $1,000 4% Adj. Op. Income* $500 2% $0 0% Q320 Q420 Q121 Q221 Q321 2020 2021 7
Slide 8: Grain and Protein Results
GRAIN AND PROTEIN RESULTS Grain / Seed / Protein Production Equipment September 2021 YTD Sales By Region ● September YTD 2021 net sales increased South America ~20% vs 2020 ‒ Increase in sales of grain and seed equipment of ~24% APA ‒ Increase in sales of protein production North America EME $820M 5
Slide 9: Liquidity / Free Cash Flow
LIQUIDITY / FREE CASH FLOW* September YTD Free Cash Flow Cashflow / Liquidity 2021 2020 ● Closely managing costs and cash $41M expenditures ● Supply chain constraints-related inventory build ● Repaid $276M of term loan facility during Q1 21 ● Paid an annual variable special dividend in ($157M) Q2 21
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 ~2% + Pricing ~5.5% + Market share gains • Engineering expense +20% vs ‘20 • Operating margin Up ~150 bps vs ‘20 • Effective tax rate 27-29% 11
Slide 12: 2021 Outlook
2021 OUTLOOK Sales Adjusted EPS CAPEX Free Cash Flow* $10.9B to $11.1B $8.75 to $9.00 ~$300M $200M-$300M • 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: Free Cash Flow
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow $M Nine months Nine months ended ended September 30, September 30, 2021 2020 Net cash (used in) provided by operating activities $41.5 $224.1 Less: Capital expenditures (198.7) (183.1) Free cash flow ($157.2) $41.0 Note: Free cash flow is defined as net
Slide 15: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow $M Full Year 2021E Net cash (used in) provided by operating activities $500 - $600 Less: Capital expenditures $(300) Free cash flow $200 - $300 Note: Free cash flow is defined as net cash (used in) provided by operating activities less capital expenditu
Slide 16: 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 2021 2020 2020 $ % North America $ 638.7 $ 582.2 9.7% $ 7.1 1.2% South America 383.3 273.9 39.9% 9.1 3.3% Europe/Middle East 1,462.4
Slide 17: 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 2021 2020 2020 $ % North America $ 1,984.5 $ 1,689.9 17.4% $ 30.9 1.8% South America 902.1 606.3 48.8% (28.2) (4.7)% Europe/Middle Eas
Slide 18: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Three Months Ended September 30, 2021 2020 Income From Net Net Income Income From Net Net Income Operations Income (1) Per Share Operations Income Per Share(1) As reported $ 251.9 $ 181.3 $ 2.40 $ 224.0 $ 157.3 $ 2.09 Restructur
Slide 19: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Nine Months Ended September 30, 2021 2020 Income From Net Income Income From Net Net Income Operations(1) Net Income Per Share Operations(1) Income (1) Per Share As reported $ 737.4 $ 614.9 $ 8.11 $ 421.7 $ 291.7 $ 3.86 Goodwill
Slide 20: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Net Income Per Share As targeted $9.56 to $9.81 Restructuring expenses 0.08 Deferred income tax adjustment (0.89) As adjusted targeted $8.75 to $9.00 20