Slide 1: Fourth Quarter 2020 Financial and Operational Results
FOURTH QUARTER 2020 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** Q4 20 v YTD 20 v Reported Reported Q4 20 Q4 19 YTD 20 YTD 19 Net Sales $2,717.1 8.1% $9,149.7 1.2% Gross margin 21.9% +150bps 22.5% +50bps Operating income $178.0 457.4% $599.7 72.3% Operating margin 6.6% +850bps 6.6% +270bps Diluted EPS $1.78 $2.95 $5.65 $4.02 Q4 20 v YTD 20
Slide 4: Industry Overview
INDUSTRY OVERVIEW 2020 Retail Units North America 2020 vs. 2019 Tractors* Industry 10% Combines Industry --% Western Europe 2020 vs. 2019 Tractors Industry (1)% Combines Industry 1% South America 2020 vs. 2019 Tractors Industry 12% Combines Industry 20% * Excludes compact tractors 4 4
Slide 5: AGCO Response to COVID-19
AGCO RESPONSE TO COVID-19 Focus on health and well-being of AGCO’s workforce and our communities Support our dealers and farmers to promote food security Secure business continuity and liquidity of AGCO business operations 5
Slide 6: 2020 Production
2020 PRODUCTION AGCO Production Hours (9)% ~ Flat 10% (19)% • Q420 production ~ Flat vs. Q419 • Full year 2020 production was down approximately 5% vs. 2019 Q1 Q2 Q3 Q4 2019 Production 2020 Production 6 6
Slide 7: Regional Net Sales Results
Regional Net Sales Results Q4 20 vs. Q4 19 Net Sales Excluding Currency Translation* 2020 $9.1B South North EME America APA America Consol. North North America America 24% 28%South South America America 9% EME EME 8% APA 59% 57% APA 8% 7% 8% 53% (4)% (10)% 7% 2019 $9.0B 2020 vs. 2019 Net Sales Exclu
Slide 8: Net Sales, Operating Income and Operating Margins
NET SALES, OPERATING INCOME AND OPERATING MARGINS Sales Q4 19 to Q4 20 Adj. Op. Full Year $M Margin* $3,000 10% $639M $2,500 8% $534M Net Sales 7.0% $2,000 Adj. Op. Margin* Adj. Op. Margin* 6% 5.9% $1,500 4% Adj. Op. Income* $1,000 2% $500 $0 0% Q419 Q120 Q220 Q320 Q420 2019 2020 * Reflects adjusted
Slide 9: Grain and Protein Results
GRAIN AND PROTEIN RESULTS December 2020 YTD Sales 2020 net sales decreased ~11% vs 2019 on a constant currency By Region By Product basis $902M $902M ─ Decline in sales of grain and seed equipment of ~15% SA ─ Decline in sales of protein production equipment ~7% APA Protein EAME Longer term: 47%
Slide 10: Free Cash Flow
FREE CASH FLOW* Full-Year Free Cash Flow Liquidity $627M ● $627M of FCF in 2020 ● Significant working capital contribution o Inventory reduction contributed $423M $120M ● Targeting another year of strong FCF in 2021 2019 2020 Note: Free cash flow is defined as net cash provided by operating activiti
Slide 11: 2021 Market Outlook
2021 MARKET OUTLOOK Regional Market Outlook – Industry Unit Retail Tractor Sales N. America* S. America Western Europe 137K Flat Up 100K 5-10% 52K Up ~5% 2020 2021E 2020 2021E 2020 2021E 11 *Excludes 11 compact tractors
Slide 12: 2021 Assumptions: Summary
2021 ASSUMPTIONS: SUMMARY • 2021 sales vs. 2020 + Improved end market demand + Positive currency impact of ~4% + Pricing +2.5% to 3.0% + Market share gains • Engineering expense ~4% of sales • Operating margin Up 80 to100bps vs ‘20 • Effective tax rate 30-32% 12
Slide 13: 2021 Outlook
2021 OUTLOOK 2021 Estimates Sales $10.2B to $10.4B Reported and Adjusted EPS $7.00 to $7.25 CAPEX ~$300M Free Cash Flow* $400M-$450M • See reconciliation to GAAP metrics in the appendix of this presentation. 13 • Note: Free cash flow is defined as net cash provided by operating activities less capit
Slide 14: Save the Date - 2021 Virtual Analyst Briefing
SAVE THE DATE - 2021 VIRTUAL ANALYST BRIEFING When: Wednesday, March 3, 2021 8:30 a.m. – 10:30 a.m. Where: http://investors.agcocorp.com Company Presenters: Eric Hansotia, Chairman, President, and CEO Andy Beck, SVP and CFO Seth Crawford, SVP Precision Ag and DCX Registration http://investors.agcoco
Slide 15: Appendix
APPENDIX 14
Slide 16: Non-GAAP to GAAP Reconciliation: Free Cash Flow
NON-GAAP TO GAAP RECONCILIATION Free Cash Flow (in Millions) 2021E 2020 2019 Net cash provided by operating activities $700 to $750 $ 896.5 $ 695.9 Less: capital expenditures ~$(300) $ (269.9) $ (273.4) Free cash flow $400 to $450 $ 626.6 $ 422.5 Note: Free cash flow is defined as net cash provided
Slide 17: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) 16
Slide 18: Non-GAAP to GAAP Reconciliation
NON-GAAP TO GAAP RECONCILIATION (In millions, except per share amounts) 17
Slide 19: Reconciliation of Currency Translation and Acquisition Impacts to Net Sales
RECONCILIATION OF CURRENCY TRANSLATION AND ACQUISITION IMPACTS TO NET SALES Net Sales (In millions) 18
Slide 20: Non-GAAP to GAAP Reconciliation: Net Debt
NON-GAAP TO GAAP RECONCILIATION Net Debt (In millions) 19