Slide 1: Third Quarter 2011 Financial and Operational Results
Third Quarter 2011 Financial and Operational Results October 25, 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, commodity prices, farmer income and sentiment, industry demand, the impacts of currency translation, new product development and market
Slide 3: Financial Summary
Financial Summary $ Millions, Q3 11 vs. YTD YTD11 vs. except per share values Q3 11 Q3 10 2011 YTD10 Net Sales 2,099.1 +26.7% 6,255.4 +32.3% Gross Profit 407.8 +34.2% 1,252.0 +47.4% Adj. Op. Inc.* 114.3 +48.2% 423.9 +129.0% Adj. Op. Margin* 5.4% +79 bps 6.8% +286 bps Adj. Diluted EPS* $0.87 +$0.21 $
Slide 4: Tractor/Combine Production
Tractor/Combine Production Production Units +8% +23% Flat • Production flat in Q311 vs. Q310 • Q3 increases in EAME and NA partially offset by decrease in SA • Full year 2011 production projected to increase ~9% vs. 2010 Q1 Q2 Q3 Est. Q4 2010 Production 2011 Production 4
Slide 5: Industry Overview
Industry Overview September 2011 YTD Retail Units North America YTD11 vs. YTD10 Tractors • Industry +1% Combines • Industry -4% Western Europe YTD11 vs. YTD10 Tractors • Industry +12% Combines • Industry +38% South America YTD11 vs. YTD10 Tractors • Industry -4% Combines • Industry +24% 5
Slide 6: Acquisition
Acquisition Segments Equipment Acquisition Rationale Strong Business Grain Bins Material Handling Conditioning Model Grain Storage 61% of Synergies 2011Sales Attractive Industry Fundamentals Common End- Feed / Watering Climate Confinement Market Focus Systems Control Nesting Protein Production Impro
Slide 7: Regional Net Sales Results
Regional Net Sales Results YTD 2011 $6.3B Q311 vs. Q310 Net Sales Excluding Currency Translation* North America South America 19% ROW 5% 23% +38% +15% +19% Flat +10% EAME 53% EAME South ROW North Consol. America America YTD 2010 $4.7B YTD11 vs. YTD10 Net Sales North Excluding Currency Translation* A
Slide 8: Net Sales and Margins
Net Sales and Margins Sales Adj. Op. September YTD $M Margin* $424M Sales $2,000 8% 6.8% Adj. Op. Margin* $1,500 6% Adj. Op. Margin* $185M 3.9% $1,000 4% Adj. Adj. Op. Op. Inc.* Inc.* $500 2% YTD 2010 YTD 2011 $0 0% Q310 Q410 Q111 Q211 Q311 * Reflects adjusted results, which exclude restructuring an
Slide 9: Improved North American Profitability
Improved North American Profitability North American Sales and Operating Margins $1,274M $1,172M Significant progress $1,026M over last 4 years Sales Sales Improvement despite declining or flat sales 4.1% Progress driven by: – New products Op. Margin – Factory productivity 1.4% -0.8% YTD08 YTD10 YTD
Slide 10: Free Cash Flow*
Free Cash Flow* YTD Free Cash Flow (9 Months Ended Sept. 30 ) • Seasonal working capital build in first +$83M half of year • Second half of year -$79M seasonally stronger for free cash flow • Targeting free cash flow of $150M+ in YTD10 YTD11 2011 Note: Free cash flow is defined as net cash generated
Slide 11: 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 significant $167M plant investments in $141M Germany and China $129M $88M $78M Dep. & Amort. 2004 2005 2006 2007 2008 2009 2010 201
Slide 12: 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 0-5% UP 10-15% 141K Down 73K 5-10% 2010 2011E 2010 2011E 2010 2011E 12
Slide 13: 2011 Outlook
2011 Outlook 2011 Estimates Net Sales $8.7B to $8.8B Operating Margin 200+ bps EPS ~$4.30 CAPEX $250-$300 Million Free Cash Flow* $150 Million + Note: Free cash flow is defined as net cash provided by operating activities less capital expenditures. * Please see reconciliation to GAAP metrics provide
Slide 14: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Free Cash Flow $M Nine months Nine months ended ended September 30, September 30, 2011 2010 Net cash provided by operating activities $ 270.5 $ 4.1 Less: Capital expenditures (187.2) (82.8) Free cash flow $ 83.3 $ (78.7) Note: Free cash flow is defined as net cash pro
Slide 15: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation $M (except per share amts) Three months ended September 30, 2011 2010 Income Earnings Income Earnings From Net Per From Net Per Operations Income(1) Share(1) Operations Income(1) Share(1) As adjusted $ 114.3 $ 84.4 $ 0.87 $ 77.1 $ 63.1 $ 0.66 Restructuring and other i
Slide 16: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation $M (except per share amts) Nine months ended September 30, 2011 2010 Income Earnings Income Earnings From Net Per From Net Per Operations Income(1) Share(1) Operations Income(1) Share(1) As adjusted $ 423.9 $ 297.6 $ 3.04 $ 185.1 $ 137.7 $ 1.43 Restructuring and other
Slide 17: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation AGCO Regional Net Sales (in millions) % change from 2010 due to % change currency Net sales from 2010 translation(1) Three months ended September 30, 2011 North America $ 417.7 11.9% 1.5% South America 515.7 5.7% 6.2% Europe/Africa/Middle East 1,054.1 48.7% 10.5% Rest
Slide 18: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Net Sales $M Three Months Ended September 30, % change from 2010 2011 at Actual 2011 at Adjusted due to currency (1) Exchange Rates Exchange Rates translation North America $417.7 $412.2 1.5% South America 515.7 485.6 6.2% Europe/Africa/Middle East 1,054.1 979.6 10.5%
Slide 19: Non-GAAP To GAAP Reconciliation
Non-GAAP To GAAP Reconciliation Net Sales $M Nine Months Ended September 30, % change from 2010 2011 at Actual 2011 at Adjusted due to currency (1) Exchange Rates Exchange Rates translation North America $1,171.9 $1,155.6 1.6% South America 1,423.0 1,314.4 8.3% Europe/Africa/Middle East 3,334.4 3,09