Slide 1: First Quarter 2021 Financial and Operational Results
FIRST QUARTER 2021 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 and timing of those plans, acquisition, expansion and modernization plans and our expectations with respect to the costs and benefits of
Slide 3: Financial Summary
FINANCIAL SUMMARY $M** Reported Q1 21 Q1 21 v Q1 20 Net Sales $2,378.7 23.4% Gross margin 24.0% +60bps Operating income $195.2 94.4% Operating margin 8.2% +300bps Diluted EPS $1.99 $1.14 Adjusted Q1 21 Q1 21 v Q1 20 Adj. Operating income* $196.5 94.2% Adj. Operating margin* 8.3% +300bps Diluted Adju
Slide 4: Industry Overview
INDUSTRY OVERVIEW Q1 2021 Retail Units 2021 vs. 2020 Tractors* Industry 31% North America Combines Industry 17% Tractors Industry 23% Western Europe Combines Industry 16% Tractors Industry 33% South America Combines Industry 26% 4 * Excludes compact tractors
Slide 5: 2021 Production
2021 PRODUCTION AGCO Production Hours +25% (19)% • Q121 production up ~25% vs. Q120 • Full year 2021 production expected to be up 10-12% vs. 2020 Q1 Q2 Q3 Q4 2020 Production 2021 Production 5
Slide 6: Regional Net Sales Results
REGIONAL NET SALES RESULTS Q1 2021 $2.4B North America 26% South EME America 56% EME 8% Q1 21 vs. Q1 20 Net Sales Excluding Currency Translation* South America 57% APA 10% 7% South North APA EME America APA America Consol. 8% Q1 2020 $1.9B North America 28% 12% 84% 66% 10% 20% EME 58% South America
Slide 7: Net Sales, Operating Income and Operating Margins
NET SALES, OPERATING INCOME AND OPERATING MARGINS Q1 20 to Q1 21 March YTD Sales Adj. Op. $M Margin* $3,000 10% $197M 8.3 % $2,500 8% $2,000 Adj. Op. Margin* Adj. Op. Margin* 6% $101M $1,500 5.2% Net Sales 4% $1,000 Adj. Op. Income* 2% $500 $0 0% Q120 Q220 Q320 Q420 Q121 2020 2021 7 * Reflects adjus
Slide 8: Grain and Protein Results
GRAIN AND PROTEIN RESULTS Grain / Seed / Protein Production Equipment March 2021 YTD Sales By Region ● March YTD 2021 net sales increased ~21% South America vs 2020 on a constant currency basis ‒ Increase in sales of grain and seed equipment of ~18% APA ‒ Increase in sales of protein production Nort
Slide 9: Liquidity / Free Cash Flow
LIQUIDITY / FREE CASH FLOW* Q1 Free Cash Flow Liquidity Q1 20 Q1 21 ● Closely managing costs and cash expenditures ● Increased dividend ● Re-starting share repurchases ● Declared an annual variable special dividend ● Repaid $276M of term loan facility during ($379M) Q1 21 ($496M) ● Normal seasonal b
Slide 10: 2021 Market Outlook
2021 MARKET OUTLOOK Regional Market Outlook – Industry Unit Retail Tractor Sales N. America* S. America Western Europe 137K Up 0-5% Up 100K ~15% 52K Up 5-10% 2020 2021E 2020 2021E 2020 2021E 10 *Excludes compact tractors
Slide 11: 2021 Assumptions: Summary
2021 ASSUMPTIONS: SUMMARY • 2021 sales vs. 2020 + Improved end market demand + Positive currency impact of ~3% + Pricing +3.5% to 4.0% + Market share gains • Engineering expense +20% vs ‘20 • Operating margin Up 150 bps vs ‘20 • Effective tax rate 28-30% 11
Slide 12: 2021 Outlook
2021 OUTLOOK Reported and Sales CAPEX Free Cash Flow* Adjusted EPS $10.6B to $10.8B $8.40 to $8.60 ~$300M $450M-$500M • See reconciliation to GAAP metrics in the appendix of this presentation. 12 • Note: Free cash flow is defined as net cash provided by operating activities less capital expenditures
Slide 13: Appendix
APPENDIX 13
Slide 14: Non-GAAP to GAAP Reconciliation: Free Cash Flow
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow $M Quarter ended Quarter ended March 31, March 31, 2021 2020 Net cash used in operating activities $ (315.3) $ (435.3) Less: Capital expenditures (63.5) (60.6) Free cash flow $ (378.8) $ (495.9) Note: Free cash flow is defined as net cash used in operat
Slide 15: Non-GAAP to GAAP Reconciliation: Free Cash Flow 2021E
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow $M 2021E Net cash provided by operating activities $750 - $800 Less: Capital expenditures $(300) Free cash flow $450 - $500 Note: Free cash flow is defined as net cash provided by operating activities less capital expenditures. 15
Slide 16: Reconciliation of Currency Translation and Acquisition Impacts to Net Sales
RECONCILIATION OF CURRENCY TRANSLATION AND ACQUISITION IMPACTS TO NET SALES Net Sales $M 16
Slide 17: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) (1) (1) Rounding may impact summation of amounts 17