Slide 1: Second Quarter 2022 Financial and Operational Results
SECOND QUARTER 2022 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** Q2 22 vs. YTD 22 vs. Reported Q2 22 YTD 22 Q2 21 YTD 21 Net Sales $2,945.2 2.3% $5,630.9 7.1% Gross margin 23.4% -60bps 23.5% -50bps Operating income $263.5 (9.2)% $467.5 (3.7)% Operating margin 8.9% -120bps 8.3% -90bps Diluted EPS $2.37 $(1.36) $4.40 $(1.31) Q2 22 vs. YTD 22
Slide 4: Industry Overview
INDUSTRY OVERVIEW June 2022 Year-to-Date Retail Units 2022 vs. 2021 Tractors* Industry (7)% North America Combines Industry (8)% Tractors Industry (10)% Western Europe Combines Industry (16)% Tractors Industry 7% South America Combines Industry (5)% * Excludes compact tractors Note: Amounts based on
Slide 5: 2022 Production
2022 PRODUCTION AGCO Production Hours +6% • Q2 22 production impacted by cyberattack - (8)% down ~8% vs. Q2 21 • Full year 2022 production expected to be up 5-7% vs. 2021 • Current production rates on target to meet 2H production plan Q1 Q2 Q3E Q4E 2021 Production Hours 2022 Production Hours 5
Slide 6: Focus on Growing High Margin Businesses
FOCUS ON GROWING HIGH MARGIN BUSINESSES Global Fendt Full-line Precision Global Parts & Ag Services Business 6 SUSTAINABILITY
Slide 7: Smart Farming Solutions Dramatically Increase Addressable Market
AGCO’S SMART FARMING SOLUTIONS DRAMATICALLY INCREASE ADDRESSABLE MARKET Across The Crop Cycle Repairs and Grain Drying Other Storage Maintenance 2% Hired Labor 1% Harvesting 4% 3% Seed Land (Fixed) Pest Expanding 7% 29% Control Revenue Fertilization addressable Crop Protection Weed Control Yield 7%
Slide 8: Precision Ag Business
PRECISION AG BUSINESS Driving Revenue And Margin Growth $900M+ New Goal Ahead of Fuse Precision Ag Schedule $800M+ • Expanded portfolio Original Goal • Channel development • Global penetration ~$400M Retrofit • Innovation • Retrofit industry globally • Expansion across the crop cycle 2020 2021 2022
Slide 9: Regional Net Sales Results
REGIONAL NET SALES RESULTS Q2 22 vs. Q2 21 Net Sales Excluding Currency Translation* June YTD 2022 $5.6B South North North America EME America APA America Consol. 25% EME 51% South America 16% APA 8% 3% 77% 2% 1% 10% June YTD 2021 $5.3B YTD 22 vs. YTD 21 Net Sales Excluding Currency Translation* Nor
Slide 10: Net Sales, Adjusted Operating Income and Operating Margins
NET SALES, ADJUSTED OPERATING INCOME AND OPERATING MARGINS Q2 21 to Q2 22 June YTD Sales Adj. Op. $M Margin* $3,000 12% $507M $2,500 10% $492M $2,000 8% Adj. Op. Margin* 9.3% 9.0 % $1,500 6% Net Sales $1,000 4% Adj. Op. Margin* $500 2% Adj. Op. Income* $0 0% Q221 Q321 Q421 Q122 Q222 2021 2022 10 * R
Slide 11: Grain & Protein Results
GRAIN & PROTEIN RESULTS Grain / Seed / Protein Production Equipment June 2022 YTD Sales By Region ● June YTD 2022 net sales decreased ~1% South America vs. 2021 ‒ Increase in sales of grain and seed equipment of ~19% APA ‒ Decrease in sales of protein production North America EME $526M 57% APA equip
Slide 12: Free Cash Flow
FREE CASH FLOW* June YTD Free Cash Flow Full Year Free Cash Flow Free Cash Flow ● Supply chain constraints - related inventory 2022 2021 2022E 2021 build ● Second half of year seasonally stronger for free cash flow ● Targeting ~$600M free cash flow in 2022 ● Paid variable special dividend of $4.50 p
Slide 13: 2022 Market Outlook
2022 MARKET OUTLOOK Regional Market Outlook – Industry Unit Retail Tractor Sales N. America* S. America Western Europe Up 5-10% 136K ~Flat 115K 52K Up ~10% 2021 2022E 2021 2022E 2021 2022E 13 *Excludes compact tractors
Slide 14: 2022 Assumptions: Summary
2022 ASSUMPTIONS: SUMMARY • 2022 sales vs. 2021 + Improved end-market demand - Negative currency impact of (7%) + Pricing ~10% + Market share gains • Engineering expense +15-20% vs ‘21 • Operating margin ~9.9% • Effective tax rate 28-29% 14
Slide 15: 2022 Outlook
2022 OUTLOOK Sales Adjusted EPS* CAPEX Free Cash Flow* $12.4 to $12.6B $11.70 to $11.90 ~$325M ~$600M Note: Free cash flow is defined as net cash (used in) provided by operating activities less capital expenditures. * See reconciliations in the appendix to this presentation. • See reconciliation to
Slide 16: Focus on Growing High Margin Businesses
FOCUS ON GROWING HIGH MARGIN BUSINESSES Global Fendt Full-line Precision Global Parts & Ag Services Business 16 SUSTAINABILITY
Slide 17: Appendix
APPENDIX 17
Slide 18: Non-GAAP to GAAP Reconciliation: Free Cash Flow
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow $M Six months Six months ended ended June 30, June 30, 2022 2021 Net cash used in operating activities $ (570.5) $ (124.9) Less: Capital expenditures (139.2) (120.6) Free cash flow $ (709.7) $ (245.5) Note: Free cash flow is defined as net cash used in
Slide 19: Non-GAAP to GAAP Reconciliation: Free Cash Flow
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow $M Full Year Full Year 2022E 2021 Net cash provided by operating activities ~$ 925 $682.9 Less: Capital expenditures ~$(325) $(269.8) Free cash flow ~$ 600 $413.1 Note: Free cash flow is defined as net cash provided by operating activities less capital
Slide 20: Non-GAAP to GAAP Reconciliation: Net Sales
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Net Sales $M Three Months Ended June 30, Change due to currency translation % change 2022 2021 from 2021 $ % North America $ 739.9 $ 734.7 0.7 % $ (5.3) (0.7)% South America 519.2 278.3 86.6 % 26.0 9.3 % Europe/Middle East 1,467
Slide 21: Non-GAAP to GAAP Reconciliation: Net Sales
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Net Sales $M Six Months Ended June 30, Change due to currency translation % change 2022 2021 from 2021 $ % North America $ 1,440.9 $ 1,345.8 7.1 % $ (6.9) (0.5)% South America 875.6 518.8 68.8 % 41.4 8.0 % Europe/Middle East 2,8
Slide 22: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Three Months Ended June 30, 2022 2021 Income From Net Income Income From Net Income Operations(1) Net Income Per Share Operations Net Income Per Share(1) As reported $ 263.5 $ 177.7 $ 2.37 $ 290.3 $ 282.8 $ 3.73 Restructuring ex
Slide 23: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) Six Months Ended June 30, 2022 2021 Income From Net Income Income From Net Net Income Operations(1) Net Income (1) Per Share(1) Operations(1) Income (1) Per Share As reported $ 467.5 $ 329.5 $ 4.40 $ 485.5 $ 433.6 $ 5.71 Impairm