AGCO Corp at JPMorgan Industrials Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : Understood. How about the other side of it? If the US farmers are slapped with retaliatory tariffs? In the last similar situation, we saw Brazilian farmers benefited from it. Would you expect something similar? And along the same lines, that market was the first one to turn negative. Are you -- is there a sense of optimism in Brazil?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : Understood. And switching to inventory. You're doing a lot of destocking this year. Can you sort of remind us where you are in terms of inventory months in North America, South America, and Europe?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : So staying on that same topic, these inventory months based on next 12 months sales, it's a function of how sales eventually turn out, right? And if you look at the data that came out this morning, Germany, U.K. registrations were very weak. North America also January was weak, combines more so than tractors. And so are these 2 months of data that we have, was this kind of gloomy expectation already embedded in your guide? Or how is the year playing out so far in terms of your retail sales?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : So at any point this year, do you expect retail sales to be flattish or up in any region?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : Understood, okay. And staying on a similar topic, so when you think about production, I think you guided to down [15 to 20] for the year. How should we think about first half versus second half?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : And so how about the margin? So your operating margin target for this year is 7% to 7.5%. How does that compare one half versus the back half? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 7:10PM, AGCO.N - AGCO Corp at JPMorgan Industrials Conference

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : That's very helpful. And I know you're not talking about 2026 yet. Assuming production is, let's say, flattish next year, I'm just throwing a number out there, how should we think about incremental margin in that kind of an environment?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : Perfect. Let's talk about your market share. Can you comment on your market share by region as it was in 2024 versus, let's say, 2019? Did you gain somewhere in some categories? Any color would be helpful.

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : Sorry. And how do you define large ag?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : And it seems like 2024 is, let's say, arguably the trough of this cycle. And how the inflection is going to be in 2026, that remains TBD. But from our perspective, what are some of the leading indicators that we should be looking at to get a sense of whether 2026 is an up year, flat year, down year?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : That's very helpful. So let's switch to PTx Trimble. You had to take a write-down of charge for that. And I think you said your expectation of sales are going to be flat year-over-year this year, so about $850 million. Pro forma, I think, was about $1.3 billion when you acquired and did the JV. So walk us through that math. How is it going to be $850 million this year? And then along the same lines, you're expecting $2 billion-plus by 2029. What gets you to that number? Is it through distribution expansion, OEM relationship expansion, anything else?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : Awesome. Let's take some questions from the audience. If anyone has a question, raise your hand and we can get the mic to you. I think there's one right there. Unidentified Participant Just two quick questions. Just to make sure that I come from what Tami was asking about. You're talking about second half weighted kind of like improvement there, right, for the '25. So is that all predicated on an assumption that '24 was a trough for? And second question is also the -- in terms of the European market. You sound like more positive, from my point of view, like than your peers for European market. And given your exposure, 50%, you said like in Europe, so is it something like you have special setup there like versus your peers? Like what makes you like more positive than them?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : There's a question there. Unidentified Participant Do you expect Precision Ag to have any impact on replacement cycles? Just as it becomes a greater part of the mix, does it change the dynamics around replenishment at all? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 7:10PM, AGCO.N - AGCO Corp at JPMorgan Industrials Conference

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : Any other questions? So we have about a couple of minutes. I want to ask a final question. A lot of your 2029 targets, the 4% to 5% outperformance in terms of volume versus the industry is predicated on share gains. Now if you look at your largest competitor, they have this expansive dealer network, which is one of their strongest moats. What are you doing to cross that hurdle? How do you make sure you gain share having maybe have the presence that they have or even less when it comes to the dealer network, especially in North America?

Question: Tami Zakaria - JPMorgan Chase & Co - Analyst : That's great. That's all the time we have. Thank you so much, Damon, and thanks, everyone, for joining.