Agco Corporation · NYSE:AGCO
Agco — Merger or Acquisition (September 2023)
16 slides from Agco's merger presentation, Sep 29, 2023
Slide 1: AGCO to Acquire Trimble Ag Assets and Technologies Through a Joint Venture
AGCO to Acquire Trimble Ag Assets and Technologies Through a Joint Venture Focused on Next-Generation Precision Ag Technology September 28th, 2023
Slide 2: Legal Disclaimer
Forward-looking statements in this presentation, including statements about the transaction and our strategic plans as well as synergies, growth in revenue and EBITDA, accretion of the transaction to growth, margin and earnings, and our ability to close the transaction and the timing of the closing,
Slide 3: Today's Participants
3 Today’s Participants Eric Hansotia Chairman, President and Chief Executive Officer Damon Audia Chief Financial Officer Rob Painter President and Chief Executive Officer
Slide 4: Advances Farmer-First Technology Strategy
4 Advances Farmer-First Technology Strategy Landmark Transaction Further Transforming AGCO • AGCO has agreed to acquire an 85% interest in Trimble’s portfolio of Ag assets and technologies through a joint venture that will create a market leading mixed-fleet focused Precision Ag platform • Joint ven
Slide 5: Trimble Ag Has Been an Ag Market Innovator Since 1978
Global Market Reach 5 Trimble Ag Has Been an Ag Market Innovator Since 1978 Trimble Ag is A Leading Precision Ag Provider Globally • Trimble and its global network of dealers designs, engineers, and distributes market-leading Precision Ag hardware, software, and cloud-based platforms that are design
Slide 6: Innovative Precision Ag Solutions Across the Entire Farm Ecosystem
6 Innovative Precision Ag Solutions Solving Complex Technology Challenges Across the Entire Farm Ecosystem Trimble Ag Solutions Cover the Entire Crop Production Cycle Land Preparation Planting & Seeding Crop ProtectionNutrient Management Water Management Harvest & Autonomy Optimizes production throu
Slide 7: Transaction Significantly Strengthens AGCO's Tech Transformation
7 Transaction Significantly Strengthens AGCO’s Tech Transformation Foundational Architecture Retrofit & Embedded Guidance Systems Integration & Advanced Features Connected & Advanced Sensing Rapidly Expanding Connectivity Data Management & Logistics Connected Farm Enablement Automation & Artificial
Slide 8: Trimble Ag and AGCO Combination Provides Industry-Leading Technology Suite
8 Trimble Ag and AGCO Combination Provides an Industry-Leading Suite of Advanced Technology Solutions for Farmers Around the World Marrying two complementary tech stacks to further expand AGCO’s mixed-fleet solutions throughout the crop cycle 10,000+ equipment models supported Vastly expands AGCO’s
Slide 9: Joint Venture Growth Magnified via AGCO's Three Customer Channels
9 Joint Venture Growth is Magnified via AGCO’s Three Distinct Customer Channels Leveraging the Power of AGCO’s Global Channel Access AGCO Channels Description OE-FUSE OEM • Large, multi-location dealerships focused on sales of new equipment with factory-installed technology Aftermarket • Dealer-inst
Slide 10: Transaction Summary & Key Highlights
10 Transaction Summary & Key Highlights Financial Impact & Synergy Opportunity • Financial results of the joint venture will be consolidated into AGCO’s financial statements • Acquisition expected to be accretive to AGCO’s revenue growth, operating margin profile, and earnings per share in the first
Slide 11: Overview of the Joint Venture Structure
11 Overview of the Joint Venture Structure Assets Contributed AGCO Contribution Joint Venture 85% AGCO Ownership 15% Trimble Ownership Supply Agreement • Governs GNSS and guidance hardware and technology that Trimble will supply to the JV for sale to AGCO dealers and other OEMs • Minimum term of sev
Slide 12: Precision Ag Revenue Now Expected to Exceed $2.0 Billion by 2028
2020 2021 2022 Pro Forma 2023E Pro Forma 2028E 12 Pro Forma Precision Ag Revenue is Now Expected to Exceed $2.0 Billion by 2028 Combination Drives Outsized Precision Ag Revenue Growth for AGCO ~$400M $1.3-1.4Bn >$2Bn Goal AGCO Trimble Precision Ag AGCO Precision Ag Revenue
Slide 13: Joint Venture Projected EBITDA Expected to Grow by ~2x by 2028
13 Joint Venture Projected EBITDA Expected to Grow by ~2x by 2028 AGCO Channels to Accelerate the Joint Venture’s EBITDA Growth Joint Venture Projected EBITDA Joint Venture Projected Standalone Trimble Ag 2023 EBITDA Precision Ag Market Growth Growth in AGCO's OEM and Aftermarket Channel Growth in A
Slide 14: AGCO Committed to Accelerating Sustainability Progress
14 AGCO is Committed to Accelerating Progress By Integrating Sustainability into the Design, Manufacturing and Distribution of Smart Agricultural Solutions Across the Entire Value Chain Joint Venture’s Technologies Are at the Heart of Sustainability of the Farm AGCO’s Sustainability Objectives • JV
Slide 15: Joint Venture Will Become a Market Leading Global Mixed-Fleet Precision Ag Business
15 Joint Venture Will Become A Market Leading Global Mixed-Fleet Precision Ag Business Transaction Accelerates AGCO’s Strategic Transformation ✓ Creates a market leading mixed-fleet Precision Ag platform – transforming AGCO’s technology stack and customer offering ✓ Enhances AGCO’s comprehensive tec
Slide 16: Q&A
Asacco & Trimble. Your Agriculture Company Q&A