Slide 1: First Quarter 2011 Financial and Operational Results
First Quarter 2011 Financial and Operational Results April 26, 2011 © 2011 AGCO Corporation All rights reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements Statements that are not historical facts, including the projections of earnings per share, sales, market conditions, margin improvements, profitability, the effect of acquisitions, new product development and market expansion, factory productivity, production, investments
Slide 3: Financial Summary
Financial Summary $ Millions, Q1 11 vs. except per share values Q1 11 Q1 10 Net Sales 1,797.7 +35.3% Gross Profit 355.9 +58.5% Adj. Op. Inc.* 108.9 +890.0% Adj. Op. Margin* 6.1% +523 bps Adj. Diluted EPS* $0.81 +$0.69 * Reflects adjusted results, which exclude restructuring and other infrequent item
Slide 4: Tractor/Combine Production
Tractor/Combine Production Production Units +18% • Production Up 17% in Q111 vs. Q110 • Strong Increases in Q1 in EAME and NA • Full year 2011 production projected to increase 5-10% vs. 2010 Q1 Est. Q2 Est. Q3 Est. Q4 2010 Production 2011 Production 4
Slide 5: Industry Overview
Industry Overview March 2011 YTD Retail Units North America YTD11 vs. YTD10 Tractors • Industry +6% Combines • Industry +37% Western Europe YTD11 vs. YTD10 Tractors • Industry +18% South America YTD11 vs. YTD10 Tractors • Industry +2% Combines • Industry -1% 5
Slide 6: Regional Net Sales Results
Regional Net Sales Results YTD 2011 $1.8B North America South 20% ROW America 23% 5% Q1 11 vs. Q1 10 Net Sales EAME Excluding Currency Translation* 52% +70% +51% +32% YTD 2010 $1.3B +25% +1% North America EAME South ROW North Consol. South 21% America America America ROW 29% 5% EAME E A ME SA ROW NA
Slide 7: Net Sales and Margins
Net Sales and Margins Sales Adj. Op. March YTD $M Margin* 8% $108.9M $2,000 Sales Adj. Adj. Op. Op. Inc.* Inc.* 6% 6.1% $1,500 4% $1,000 Adj. Op. Margin* Adj. Op. Margin* 2% $500 $11.0M 0.8% $0 0% YTD 2010 YTD 2011 Q110 Q210 Q310 Q410 Q111 * Reflects adjusted results, which exclude restructuring and
Slide 8: Improved North American Profitability
Improved North American Profitability North American Sales and Margins $368M $359M Significant progress $283M over last 3 years Improvement despite declining or flat sales 3.5% Progress driven by: – New products – Factory productivity – Pricing initiatives Q1 08 Q1 10 Q1 11 -2.6% -3.5% 8
Slide 9: Free Cash Flow*
Free Cash Flow* Q1 Free Cash Flow (3 Months Ended March 31 ) • Seasonal working capital build in first Q1 10 Q1 11 half of year • Second half of year seasonally stronger for free cash flow -$204M • Targeting positive -$226M free cash flow in 2011 Note: Free cash flow is defined as net cash used in o
Slide 10: Capital Expenditures: Investing for Growth
Capital Expenditures: Investing for Growth Continuing to Invest $250- 300M • Factory efficiency initiatives deferred in $236M 2010 Capex $207M • 2011 CAPEX will include plant $167M investments in $141M Germany and China $129M $88M $78M Dep. & Amort. 2004 2005 2006 2007 2008 2009 2010 2011E 10
Slide 11: 2011 Market Outlook
2011 Market Outlook Regional Market Outlook – Industry Unit Retail Tractor Sales Volume in Units North America South America Western Europe UP 188K 5-10% UP • Reduced impact from small tractor programs ~15% 141K in Brazil Down 73K 5-10% 2010E 2011E 2010E 2011E 11
Slide 12: 2011 Outlook
2011 Outlook 2011 Estimates Net Sales $8.3B to $8.5B Operating Margin +100 to 150 bps EPS $3.50 to $3.75 CAPEX $250-$300 Million Free Cash Flow* $100 Million + Note: Free cash flow is defined as net cash provided by operating activities less capital expenditures. * Please see reconciliation to GAAP
Slide 13: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Free Cash Flow $M Quarter Quarter ended ended March 31, March 31, 2011 2010 Net cash used in operating activities $ (167.4) $ (202.3) Less: Capital expenditures (36.8) (24.1) Free cash flow $ (204.2) $ (226.4) Note: Free cash flow is defined as net cash used in operat
Slide 14: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation $M (except per share amts) Three months ended March 31, 2011 2010 Income Earnings Income Earnings From Net Per From Net Per Operations Income(1) Share(1) Operations Income(1) Share(1) As adjusted $ 108.9 $ 80.1 $ 0.81 $ 11.0 $ 11.3 $ 0.12 Restructuring and other infre
Slide 15: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation AGCO Regional Net Sales (in millions) Three Months Ended March 31, % change from 2010 due to % change currency (1) (1) 2011 2010 from 2010 translation (1) North America $ 359.4 $ 282.9 + 27.0% + 1.6% South America 410.5 377.3 + 8.8% + 7.4% EAME 928.7 612.3 + 51.7% + 1
Slide 16: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Net Sales $M Three Months Ended March 31, % change 2011 at 2011 at from 2010 Actual Adjusted due to Exchange Exchange currency (1) Rates Rates translation North America $359.4 $354.9 1.6% South America 410.5 382.5 7.4% EAME 928.7 922.3 1.0% Rest of World 99.1 94.5 8.3