Slide 1: Third Quarter 2024 Financial and Operational Results
THIRD QUARTER 2024 Financial and Operational Results November 5, 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
Q3 24 vs. YTD 24 vs. REPORTED Q3 24 YTD 24 Q3 23 YTD 23 NET SALES $2,599.3 (24.8)% $8,774.6 (17.3)% GROSS MARGIN 23.2% (380)bps 25.2% (110)bps OPERATING INCOME $114.8 (72.9)% $146.7 (88.8)% OPERATING MARGIN 4.4% (790)bps 1.7% (1,060)bps FINANCIAL DILUTED EPS $0.40 $(3.34) $(2.27) $(13.37) SUMMARY $M
Slide 4: Industry Overview
INDUSTRY OVERVIEW September 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 (11)% (19)% (6)% (35)% (9)% (34)% 2024 vs. 2023 2024 vs. 2023 2024 vs. 2023 2024
Slide 5: Production
Q3 2023 EARNINGS RELEASE PRODUCTION AGCO Production Hours Q3 2024 Production -16% DOWN ~35% vs. 2023 -23% -35% Projected Full-Year 2024 Production Q1 Q2 Q3 Q4E DOWN ~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: Recent Product Launches Enhance Portfolio and Show Progress on Autonomy
RECENT PRODUCT LAUNCHES ENHANCE PORTFOLIO AND SHOW PROGRESS ON AUTONOMY ACROSS THE CROP CYCLE BY 2030 OUTRUN RETROFIT AUTONOMY KIT MASSEY FERGUSON 9S TRACTOR Mounted on the roof of the grain cart tractor, OutRun kit 310-425 horsepower range with proven technology, better interfaces with the tractor
Slide 8: Regional Net Sales Results
REGIONAL NET SALES RESULTS Q3 24 vs. Q3 23 Net Sales Excluding Currency Translation September YTD and Acquisition of a Business* 2024 26% NA SA APA 56% $8.8B (15)% (21)% (22)% (26)% EME 12% (44)% 6% EME SA APA NA Consolidated September YTD YTD 24 vs. YTD 23 Net Sales Excluding Currency Translation a
Slide 9: Net Sales, Adjusted Operating Income and Adjusted Operating Margins
NET SALES, ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING MARGINS Q3 23 to Q3 24 September Year-to-Date $4.5 16% $3.8B $1,327.0M $4.0 14% $3.5B $3.2B Adj. Op. Income* ($M) $3.5 12% 12.6% $2.9B Net Sales ($B) Adj. Op. Margin* $3.0 $2.6B 10% $2.5 10.7% 10.3% $758.0M 9.6% 8% 12.5% $2.0 6% $1.5 8.6% $
Slide 10: Free Cash Flow
Q3 2023 EARNINGS RELEASE SEPTEMBER YTD FREE FREE CASH FLOW* CASH FLOW 2023 2024 Source / (Use) of Cash $(155)M $(387)M in $ Mils SECOND HALF OF YEAR SEASONALLY STRONGER ▪ Used $387 million in cash through September YTD 2024, $232 million more than through September YTD 2023 ▪ Working Capital primary
Slide 11: 2024 Market Outlook
2024 MARKET OUTLOOK Regional Market Outlook – Industry Unit 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 11 (3) Amounts based
Slide 12: 2024 Key Assumptions
2024 KEY ASSUMPTIONS: ENGINEERING EXPENSE Down ~5% vs. 2023 2024 SALES vs. 2023 Increased Softening Demand ADJUSTED OPERATING MARGIN Pricing ~(0.5)% ~9% Grain & Protein Divested Nov. 1, 2024 No Foreign Currency Impact EFFECTIVE TAX RATE Market Share Gains ~30% 12
Slide 13: 2024 Outlook
2024 OUTLOOK 2023 OUTLOOK ~$7.50 75% - 100% ~$12.0B Adjusted Earnings ~$450M Free Cash Flow Net Sales Capex Per Share Conversion(1) 13 (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 14: Save the Date: AGCO 2024 Analyst Event
SAVE THE DATE AGCO 2024 Analyst Event December 19, 2024, 8:30AM – 11:40AM Eastern Time Join us for a strategic business Midtown New York update and the value of being the most farmer-focused company Farmer First Strategy Update Formal Invitation to PTx Precision Ag Update Follow Financial Update 14
Slide 15: Appendix
APPENDIX 15
Slide 16: 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 17: Grain & Protein Results
Q3 2023 EARNINGS RELEASE GRAIN & PROTEIN RESULTS Grain / Seed / Protein Production Equipment SEPTEMBER 2024 YTD NET SALES DECREASED ~9% vs. SEPTEMBER 2023 SEPTEMBER YTD 2024 SALES Decrease in Sales of Grain and Seed Equipment of ~7% $94M Decrease in Sales of Protein Production Equipment of ~14% BY R
Slide 18: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions FREE CASH FLOW Nine Months Ended September 30, 2024 2023 Net cash (used in) operating activities $(108.0) $202.7 Less: purchases of property plant and equipment (279.3) (357.7) Free Cash Flow $(387.3) $(155.0) 18 Note: Free cash flow is defined as net cash
Slide 19: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages NET SALES Change excluding Change due to currency and Change due to acquisition of a acquisition of a Three Months Ended September 30, currency translation business business % change from 2024 2023 2023 % % % North America $ 736.1 $ 941
Slide 20: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages NET SALES Change excluding Change due to currency and Change due to acquisition of a acquisition of a Nine Months Ended September 30, currency translation business business % change from 2024 2023 2023 % % % North America $ 2,303.5 $ 2,
Slide 21: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Per Share Amounts INCOME FROM OPERATIONS NET INCOME Three Months Ended September 30, NET INCOME PER SHARE 2024 2023 Income From Net Net Income Income From Net Net Income (1) (1) (2) (1) (1) Operations Income Per Share Operations Income Per Share As
Slide 22: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Per Share Amounts INCOME FROM OPERATIONS NET INCOME (LOSS) Nine Months Ended September 30, NET INCOME (LOSS) PER SHARE 2024 2023 Net Income Income From Net (Loss) Per Income From Net Net Income (1) (1) (2) (1) (1)(2) Operations Income (Loss) Share
Slide 23: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages OPERATING MARGIN Three Months Ended 2024 2023 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Net Sales $ 2,599.3 $ 3,246.6 $ 2,928.7 $ 3,800.7 $ 3,455.5 Income (Loss) from Operations 114.8 (241.7) 273.6 393.1 423.6 (1) $ 143.8 $ 333.4 $ 280.8
Slide 24: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION In Millions, Except Percentages OPERATING MARGIN Nine Months Ended September 30, 2024 2023 Net Sales $ 8,774.6 $ 10,611.7 Income from Operations 146.7 1,307.3 (1) Adjusted income from operations $ 758.0 $ 1,327.0 (2) 1.7 % 12.3 % Operating margin (2) Adjusted operatin
Slide 25: Non-GAAP to GAAP Reconciliation
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 $870 to $1,010 Less: capital expenditures (~$450) Free Cash Flow $420 to $560 Adj Net Income ~$560 Free Cash Flow Conve