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Andy Beck Senior Vice President and CFO Agenda

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Andy Beck Senior Vice President and CFO Agenda Andy Beck Senior Vice President and CFO Agenda • Recent transactions • Investing in the business • AGCO Finance performance • 2011 preliminary targets 2 Strong Financial Position – Reinvesting in the Business Reducing Net Debt to Total Capital* • Investments in developing markets • New products • Production / productivity improvements • Tactical acquisitions Note: Net debt to total capital is defined as (total debt less cash) divided by (total debt less cash) + total equity 3 Sparex Acquisition • Late life cycle UK-based parts retailer • 2009 sales of approximately $85M – mostly European – also in Africa, Middle East, Asia and North America • Gives AGCO access to independent service shops • Provides market share opportunity for AGCO dealer parts sales • Strong margin business • £53M purchase price 4 Amity Acquisition • 50% joint venture in U.S. • Expands AGCO’s product offering: air seeders and tillage products • Strong margin business • Primarily in US today, opportunity for international growth 5 Laverda Acquisition • Remaining 50% interest acquired • Additional volume and scale • Shared R&D • Opportunity for integration of purchasing and marketing organizations • New home for European combine production Combines / Balers / Grass and Hay Equipment 6 Agenda • Recent transactions • Investing in the business • AGCO Finance performance • 2010 preliminary targets 7 Growing R&D R&D Spending ($ millions) • Continuing to invest in new products – high horsepower tractors – harvesting products • Tier 4 interim products to be launched in 2011 • Expect increased in spend in 2011 8 Multiple New Product Launches and Upgrades – Tractors Development Schedule 2010 2011 2012 2013 2014 NR NRNRNRNR 40-100 hp 2 - 1 1 - 5 3 - 2 - 100-150 hp - 1 1 3 - 4 1 1 - 1 150-250 hp 1 1 - 4 2 - - 1 - 2 250+ hp 2 1 - 1 - 1 - 3 - 2 N = New R = Repowering/Upgrade Total New and Repowering: 47 9 Multiple New Product Launches and Upgrades – Combines Development Schedule 2010 2011 2012 2013 2014 NR NRNRNRNR Class VII, VIII, IX - 1 1 1 - 1 - 3 - 2 Class IV, V, VI 1 1 - 4 2 - - 1 - 2 Headers 1 - 1 - 1 - - - 1 - Forage Harvesters - - 1 - - - - - - - Sugar Cane Harvesters - - - - 1 - - - - - N = New R = Repowering /Upgrade Total New and Repowering: 24 10 New Tractor Products Massey Ferguson Valtra – “A” series 8000 series Fendt 800-900 series 11 New Harvesting and Sprayer Products TERRAGATOR CVT Hybrid Equipped Sprayer Combine Forage Harvester 12 Capital Expenditures – Investing for Growth Continuing to Invest 2010 Capex Components $250- $251M 300M Maintenance / $215M Cost Reduction $175- 200M Capex New Products $141M $129M $88M Dep. & Amort. $78M Software/ Factory IT Productivity 13 Investing in Tractor Technology and Fendt Growth Fendt Capacity • Growth in professional farming 17K segment driving Fendt growth TransmissionsTransmissions • Fendt continues to be technology leader TractorsTractors • €70-80M investment in 2011 to: – improve manufacturing flow and efficiency – increase tractor assembly capacity 06 07 08 09 10E 14 Investing in Production Facilities - China China Operation •2011 Activities focused on developing local Daqing assembly capabilities – High horsepower assembly in Daqing – Low horsepower localization and Beijing assembly in Changzou Changzhou Shanghai Total investment of $200M over 4 years 15 Agenda • Recent transactions • Investing in the business • AGCO Finance performance • 2010 preliminary targets 16 Solid, Growing Finance Business • JV with Rabobank Managed Portfolio ($B) – triple A rated Dutch Bank • 49% owned by AGCO • Funded by Rabobank • $6.9 billion portfolio • Growing market share • Robust financial performance 17 AGCO Finance – A Closer Look By Product By Region 13% Wholesale Floor-plan 31% North America 36% Western Europe 3% Australia/New 87% 30% Zealand South America Retail Financing 18 2011 Preliminary Market Outlook Regional Market Outlook – Industry Unit Retail Tractor Sales Volume in Units North America South America Western Europe Flat to +5% 185-190K 180-185K Flat • Reduced impact from small tractor programs in Brazil Down 65-70K ~10% 19 2011 Preliminary Assumptions – Summary • Sales growth from exchange, acquisitions and market share gains • ~2.5% pricing • 10-15% increase in engineering expense for new product development and tier 4 emission requirements • Gross margin improvement • More normal seasonality in 2011 • Effective tax rate 35-37% • Additional expenses for growth in developing markets 20 2011 Preliminary Outlook 2011 Estimates Net Sales +10% to 15% Operating Margin +50 to 100 bps EPS $2.50 to $2.75 CAPEX $250-$300 Million Free Cash Flow Approx. $100 Million Note: Free cash flow is defined as net cash provided by operating activities less capital expenditures. 21 IN SUMMARY Our Priorities Are Clear Execute plans for margin 1 improvement Capitalize on AGCO’s sales 2 growth opportunities Meet our ambitions for 3 long term earnings growth 22.
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