Slide 1: Second Quarter 2011 Financial and Operational Results
Second Quarter 2011 Financial and Operational Results July 28, 2011 © 2011 AGCO Corporation All rights reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements Statements that are not historical facts, including the projections of earnings per share, sales, market conditions, margin improvements, commodity prices, the impacts of currency translation and acquisitions, new product development and market expansion, factory productiv
Slide 3: Financial Summary
Financial Summary $ Millions, Q2 11 vs. YTD YTD11 vs. except per share values Q2 11 Q2 10 2011 YTD10 Net Sales 2,358.6 +35.3% 4,156.3 +35.3% Gross Profit 488.3 +52.1% 844.2 +54.7% Adj. Op. Inc.* 200.7 +106.9% 309.6 +186.7% Adj. Op. Margin* 8.5% +294 bps 7.4% +393 bps Adj. Diluted EPS* $1.35 +$0.69 $
Slide 4: Tractor/Combine Production
Tractor/Combine Production Production Units +8% +23% • Production Up 8% in Q211 vs. Q210 • Second half increases in EAME and NA partially offset by decrease in SA • Full year 2011 production projected to increase ~9% vs. 2010 Q1 Q2 Est. Q3 Est. Q4 2010 Production 2011 Production 4
Slide 5: Industry Overview
Industry Overview June 2011 YTD Retail Units North America YTD11 vs. YTD10 Tractors • Industry +1% Combines • Industry +8% Western Europe YTD11 vs. YTD10 Tractors • Industry +14% Combines • Industry +25% South America YTD11 vs. YTD10 Tractors • Industry -1% Combines • Industry +17% 5
Slide 6: Regional Net Sales Results
Regional Net Sales Results YTD 2011 $4.2B Q2 11 vs. Q2 10 Net Sales Excluding Currency Translation* North America South America 18% ROW 5% +52% 22% +40% +22% Flat +5% EAME 55% EAME South ROW North Consol. America America YTD 2010 $3.1B YTD11 vs. YTD10 Net Sales North Excluding Currency Translation*
Slide 7: Net Sales and Margins
Net Sales and Margins Sales Adj. Op. June YTD $M Margin* $2,000 Sales 8% $310M 7.4% $1,500 6% Adj. Op. Margin* Adj. Op. Margin* $1,000 4% $108M Adj. Adj. Op. Op. Inc.* Inc.* $500 2% 3.5% YTD 2010 YTD 2011 $0 0% Q210 Q310 Q410 Q111 Q211 * Reflects adjusted results, which exclude restructuring and oth
Slide 8: Improved North American Profitability
Improved North American Profitability North American Sales and Adjusted Operating Margins $466M $395M Significant progress Sales Sales $370M over last 3 years Improvement despite 5.0% declining or flat sales Adj. Op. Margin* Progress driven by: 2.7% – New products – Factory productivity -0.3% Q2 08
Slide 9: Free Cash Flow*
Free Cash Flow* Q2 Free Cash Flow YTD Free Cash Flow (3 Months Ended June 30 ) (6 Months Ended June 30 ) • Seasonal working capital build in +$195M +$193M YTD10 YTD11 first half of year -$11M -$32M • Second half of year seasonally stronger for free cash flow • Targeting positive free cash flow in Q2
Slide 10: Capital Expenditures: Investing for Growth
Capital Expenditures: Investing for Growth Continuing to Invest $250- 300M • Factory efficiency initiatives deferred in $236M 2010 Capex $207M • 2011 CAPEX will include significant $167M plant investments in $141M Germany and China $129M $88M $78M Dep. & Amort. 2004 2005 2006 2007 2008 2009 2010 201
Slide 11: 2011 Market Outlook
2011 Market Outlook Regional Market Outlook – Industry Unit Retail Tractor Sales Volume in Units North America South America Western Europe UP 188K 5-10% UP • Reduction reflects impact from small ~15% 141K tractor programs in Brazil Down 73K 5-10% 2010 2011E 2010 2011E 2010 2011E 11
Slide 12: 2011 Outlook
2011 Outlook 2011 Estimates Net Sales $8.5B to $8.7B Operating Margin +150 to 175 bps EPS ~ $4.00 CAPEX $250-$300 Million Free Cash Flow* $150 Million + Note: Free cash flow is defined as net cash provided by operating activities less capital expenditures. * Please see reconciliation to GAAP metrics
Slide 13: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Free Cash Flow $M Three months Three months ended ended June 30, June 30, 2011 2010 Net cash generated by operating activities $ 268.9 $ 215.8 Less: Capital expenditures (75.6) (21.2) Free cash flow $ 193.3 $ 194.6 Note: Free cash flow is defined as net cash generated
Slide 14: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Free Cash Flow $M Six months Six months ended ended June 30, June 30, 2011 2010 Net cash generated by operating activities $ 101.5 $ 13.5 Less: Capital expenditures (112.4) (45.3) Free cash flow $ (10.9) $ (31.8) Note: Free cash flow is defined as net cash generated b
Slide 15: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation $M (except per share amts) Three months ended June 30, 2011 2010 Income Earnings Income Earnings From Net Per From Net Per Operations Income(1) Share(1) Operations Income(1) Share(1) As adjusted $ 200.7 $ 133.1 $ 1.35 $ 97.0 $ 63.3 $ 0.66 Restructuring and other infre
Slide 16: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation $M (except per share amts) Six months ended June 30, 2011 2010 Income Earnings Income Earnings From Net Per From Net Per Operations Income(1) Share(1) Operations Income(1) Share(1) As adjusted $ 309.6 $ 213.2 $ 2.17 $ 108.0 $ 74.6 $ 0.78 Restructuring and other infreq
Slide 17: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation AGCO Regional Net Sales (in millions) % change from 2010 due to % change currency Net sales from 2010 translation(1) Three months ended June 30, 2011 North America $ 394.8 6.7% 1.7% South America 496.8 10.8% 11.3% Europe/Africa/Middle East 1,351.6 57.5% 18.1% Rest of
Slide 18: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Net Sales Three Months Ended $M June 30, % change from 2010 2011 at Actual 2011 at Adjusted due to currency (1) Exchange Rates Exchange Rates translation North America $394.8 $388.5 1.7% South America 496.8 446.3 11.3% EAME 1,351.6 1,196.7 18.1% Rest of World 115.4 10
Slide 19: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Net Sales $M Six Months Ended June 30, % change from 2010 2011 at Actual 2011 at Adjusted due to currency (1) Exchange Rates Exchange Rates translation North America $754.2 $743.3 1.7% South America 907.3 828.9 9.5% EAME 2,280.3 2,119.0 11.0% Rest of World 214.5 196.0