Slide 1: Second Quarter 2024 Financial and Operational Results
SECOND QUARTER 2024 Financial and Operational Results July 30, 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
Q2 24 vs. YTD 24 vs. REPORTED Q2 24 YTD 24 Q2 23 YTD 23 NET SALES $3,246.6 (15.1)% $6,175.3 (13.7)% GROSS MARGIN 25.8% (50)bps 26.0% flat OPERATING INCOME (LOSS) $(241.7) (148.7)% $31.9 (96.4)% OPERATING MARGIN (7.4)% (2,040)bps 0.5% (1,180)bps FINANCIAL DILUTED EPS $(4.92) $(9.18) $(2.67) $(10.03)
Slide 4: Industry Overview
INDUSTRY OVERVIEW June 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 (8)% (11)% (5)% (20)% (14)% (35)% 2024 vs. 2023 2024 vs. 2023 2024 vs. 2023 2024 vs. 2
Slide 5: Production
Q3 2023 EARNINGS RELEASE PRODUCTION AGCO Production Hours Q2 2024 Production -16% DOWN ~23% vs. 2023 -23% Projected Full-Year 2024 Production Q1 Q2 Q3E Q4E DOWN ~20%-25% vs. 2023 2023 Production 2024 Production Plan 5
Slide 6: 3 Growth Levers Will Drive Volume and Margin Improvement
3 GROWTH LEVERS WILL DRIVE VOLUME AND MARGIN IMPROVEMENT GLOBAL FENDT FULL-LINE 12% adjusted operating margin at midcycle by year 2026(1) GLOBAL PRECISION AG PARTS & SERVICES 4%-5% above industry volume growth 75%-100% annual free cash flow conversion(2) SUSTAINABILITY (1) Adjusted operating margins
Slide 7: 2024 Technology Event Highlighted Commitment to Farmer-Focused Solutions for the Mixed Fleet
2024 TECHNOLOGY EVENT HIGHLIGHTED COMMITMENT TO FARMER-FOCUSED SOLUTIONS FOR THE MIXED FLEET AFTERMARKET & RETROFIT PTx OEM SOLUTIONS New capabilities to existing machines of almost any make and Technology and services for OEM customers around the world, vintage including AGCO’s equipment brands: Fe
Slide 8: 2024 Technology Event Demonstrated Progress on Smart Solutions and Connectivity
2024 TECHNOLOGY EVENT DEMONSTRATED PROGRESS ON SMART SOLUTIONS AND CONNECTIVITY ACROSS THE FARM RETROFIT OFFERING in 2024 Vehicle Sync PTx Trimble Ag Auto Sync OEM SOLUTION targeted for Software Over the Air TARGETED SPRAYING 2026 AUTONOMOUS RETROFIT SOLUTIONS targeted for 2025 FULLY AUTONOMOUS AUTO
Slide 9: Regional Net Sales Results
REGIONAL NET SALES RESULTS Q2 24 vs. Q2 23 Net Sales Excluding Currency Translation Q2 2024 and Acquisition of a Business* 26% NA SA APA $3.2B (5)% (18)% (16)% 58% 11% (35)% EME (40)% 5% EME SA APA NA Consolidated YTD 24 vs. YTD 23 Net Sales Excluding Currency Translation Q2 2023 and Acquisition of
Slide 10: Net Sales, Adjusted Operating Income and Adjusted Operating Margins
NET SALES, ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING MARGINS Q2 23 to Q2 24 June Year-to-Date $4.5 16% $4.0 $3.8B $3.8B 14% $3.5B $891.2M $3.2B Adj. Op. Income* ($M) $3.5 13.1% 12.6% $2.9B 12% Net Sales ($B) Adj. Op. Margin* $3.0 10% $2.5 10.7% 10.3% $614.2M 9.6% 8% 12.5% $2.0 6% 9.9% $1.5 4%
Slide 11: Free Cash Flow
Q3 2023 EARNINGS RELEASE JUNE YTD FREE CASH FLOW FREE CASH FLOW* 2023 2024 Source / (Use) of Cash $(328)M in $ Mils $(602)M SECOND HALF OF YEAR SEASONALLY STRONGER ▪ Used $328 million in cash through June YTD 2024, $274 million less than through June YTD 2023 ▪ Normal seasonal working capital build
Slide 12: 2024 Market Outlook
2024 MARKET OUTLOOK Regional Market Outlook – Industry Unit Retail Tractor Sales NORTH AMERICA(1) WESTERN EUROPE(2) SOUTH AMERICA(3) 133K Down 106K Down 5%-10% 10%-15% 67K Down 25%-30% 2023 2024E 2023 2024E 2023 2024E (1) Excludes compact tractors (2) Amounts based on Company estimates 12 (3) Amount
Slide 13: 2024 Key Assumptions
2024 KEY ASSUMPTIONS: ENGINEERING EXPENSE ~Flat vs. 2023 2024 SALES vs. 2023 Increased Softening Demand ADJUSTED OPERATING MARGIN (1)% Foreign Currency Impact ~9% Pricing ~0.0% Market Share Gains EFFECTIVE TAX RATE ~30% 13
Slide 14: Terms of Restructuring and Announced Sale of Grain and Protein
Announced Sale of Grain Restructuring and Protein (“G&P”) ▪ In response to continued ▪ On July 25, 2024, AGCO entered TERMS OF weakening ag industry demand into a definitive agreement to sell the majority of its G&P business RESTRUCTURING ▪ Target to reduce structural cost, streamline workforce, enh
Slide 15: 2024 Outlook
2024 OUTLOOK 2023 OUTLOOK ~$8.00 75% - 100% ~$12.5B Adjusted Earnings ~$475M Free Cash Flow Net Sales Capex Per Share Conversion(1) 15 (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 Net Inco
Slide 16: Appendix
APPENDIX 16
Slide 17: 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 $1.3B* 1% Machinery (Fixed) 2% Machinery Fuel 3% Crop Protection 4% Seed Innovation Across All Makes 7% 27% Hired Labor $700M $541M R
Slide 18: Grain & Protein Results
Q3 2023 EARNINGS RELEASE GRAIN & PROTEIN RESULTS Grain / Seed / Protein Production Equipment JUNE 2024 YTD NET SALES DECREASED ~12% vs. JUNE 2023 JUNE YTD 2024 SALES Decrease in Sales of Grain and Seed Equipment of ~9% $63M Decrease in Sales of Protein Production Equipment of ~18% BY REGION $43M SA
Slide 19: Non-GAAP to GAAP Reconciliation: Free Cash Flow
NON-GAAP TO GAAP RECONCILIATION In Millions FREE CASH FLOW Six Months Ended June 30, 2024 2023 Net cash (used in) operating activities ($134.5) ($365.0) Less: purchases of property plant and equipment (193.0) (237.0) Free Cash Flow ($327.5) ($602.0) 19 Note: Free cash flow is defined as net cash use
Slide 20: Non-GAAP to GAAP Reconciliation: Net Sales, Three Months
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages NET SALES Change excluding Change due to Change due to currency and currency acquisition of a acquisition of a Three Months Ended June 30, translation business business % change from 2024 2023 2023 % % % North America $ 837.8 $ 996.8 (1
Slide 21: Non-GAAP to GAAP Reconciliation: Net Sales, Six Months
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages NET SALES Change excluding Change due to Change due to currency and currency acquisition of a acquisition of a Six Months Ended June 30, translation business business % change from 2024 2023 2023 % % % North America $ 1,567.4 $ 1,919.9
Slide 22: Non-GAAP to GAAP Reconciliation: Three Months Income and EPS
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Per Share Amounts INCOME (LOSS) FROM OPERATIONS NET INCOME (LOSS) NET INCOME (LOSS) PER SHARE Three Months Ended June 30, 2024 2023 Income (Loss) Net Net Income Income From Net Net Income From Income (Loss) Per (2) (1)(2) (1) Operations (1) (1) Ope
Slide 23: Non-GAAP to GAAP Reconciliation: Six Months Income and EPS
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Per Share Amounts INCOME FROM OPERATIONS NET INCOME (LOSS) NET INCOME (LOSS) PER SHARE Six Months Ended June 30, 2024 2023 Net Net Income Income From Income From Net Net Income Income (Loss) Per Operations Operations (1) (1)(2) (1) (1) Income Per S
Slide 24: Non-GAAP to GAAP Reconciliation: Operating Margin, Quarterly
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages OPERATING MARGIN Three Months Ended 2024 2023 Jun 30, Mar 31, Dec 31, Sep 30, June 30, Net Sales $ 3,246.6 $ 2,928.7 $ 3,800.7 $ 3,455.5 $ 3,822.7 Income (Loss) from Operations (241.7) 273.6 393.1 423.6 496.4 (1) $ 333.4 $ 280.8 $ 405.3
Slide 25: Non-GAAP to GAAP Reconciliation: Operating Margin, Six Months
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages OPERATING MARGIN Six Months Ended June 30, 2024 2023 Net Sales $ 6,175.3 $ 7,156.2 Income from Operations 31.9 883.7 (1) $ 614.2 $ 891.2 Adjusted income from operations (2) 0.5 % 12.3 % Operating margin (2) 9.9 % 12.5 % Adjusted operati
Slide 26: 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 $925 to $1,075 Less: capital expenditures (~$475) Free Cash Flow $450 to $600 Adj Net Income ~$600 Free Cash Flow Conve