AGCO Corp at Morgan Stanley Laguna Conference Transcript

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

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : <_ALACRA_META_ABSTRACT>So maybe just to dive in and listen that, there's clearly a lot of debates to the cycle, right? And particularly as we head into '25, what that's going to look like for agriculture. So I want to maybe tackle that a little bit by region. Maybe starting with the one that gets the most play, but perhaps not the most significant one for you given that you're more European exposed, but North America, that's an area where, again, that's where the investor focus tends to be. So from an inventory perspective, can you talk about just how you -- what the setup is right now in terms of inventory, dealer inventories, how you guys are managing it?

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : Perfect. And maybe just to the extent that, that impacts your views on pricing or the industry dynamic there, I think that's where probably the most skepticism is in terms of investor base thinking that there might be a little bit more pressure on the pricing side, right? Yet what I hear, when I speak to the company, it's a little bit more discipline around the pricing side on North America. So what are you seeing both on the new and used side and maybe what the strategy is?

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : That's very helpful. And maybe just to continue on that because you mentioned marketer, the dynamic there, obviously, you have your strategy around Fendt. I think also farmers talked about Massey Ferguson strategy as well. But one of the things that was notable as you made it clear that you're not going to use discounting lever as a means of growing your market share and driving that incremental growth in those businesses. But I think you'd mentioned in one of the meetings, you have been having some success with the Fendt market share. So can you talk a little bit more about that strategy how do you grow those businesses, grow the market share and keep pulling perhaps on that lever?

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : And what about the Massey side, so the strategy there to double that brand? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2024 / 10:45PM, AGCO.N - AGCO Corp at Morgan Stanley Laguna Conference

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : And how are you seeing the ability to capture market share in this downturn? Is that evolving or changing versus where we were perhaps within (inaudible)

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : Right. And I definitely want to get back to some of the offerings because I think you also announced some from progress that I thought was interesting. So maybe sticking with this, just the last one on North America early order programs or on the seasonal larger equipment, what are you seeing there in terms of early reads into fiscal year '25? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2024 / 10:45PM, AGCO.N - AGCO Corp at Morgan Stanley Laguna Conference

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : Okay. Got it. And maybe switching over to Europe. I think you described this as one of the less volatile markets versus the other regions. Can you just talk about what's the latest there? I think your inventories are in place. But as we think about indication into '25, what are the early signals in terms of direction that you're seeing?

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : And then that's the [2%] of your revenue, correct?

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : One interesting thing that I find about Europe is it is least volatile, but it's actually the most fragmented of the regions. Can you talk about maybe what allows for it to be perhaps showing a little bit more disciplined or a little bit narrower of volatility when you would expect theoretically that the more fragmented market is, it's probably going to face more competition, more lack of discipline. And yet, it seems to be have a little bit narrower. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2024 / 10:45PM, AGCO.N - AGCO Corp at Morgan Stanley Laguna Conference

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : That's very helpful. And I guess as you think about you mentioned the market share of Fendt, that's been continuing very well. Is there an ability to do consolidation in the industry in Europe? Or is it just about taking share over time with the product offering with innovation?

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : Right. Maybe pivoting to South America. I guess, before I move on, any questions from the audience? I think we have one up here, if we could get a mic down here. yeah, I think it's for the webcast. I don't know if we're doing one for this. All right. It's actually all the way up. Go ahead. Unidentified Participant The Trimble acquisition. Could you talk about that and about your tech stack and how that differentiates from your competitors?

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : I think we have one over here. Unidentified Participant Could you just help us understand what's going on with TAFE and where you're not seeing eye to eye?

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : Any other questions? Now I wanted to move on to the Precision Ag side, particularly, you mentioned the PTx announcement, the autonomous cart. I guess, I wanted to dig in a little bit more, not just from what you're seeing in terms of the early insights from customers, the take rates on the products at this, but also the receptivity to more of the subscription models around some of these products.

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : Yeah. No, that's very helpful. And then maybe just one last one on the Precision Ag. Just you had a goal for $2 billion in Precision Ag by 2028. You mentioned Trimble, you mentioned Precision Planting. How do you think about your technology stack where you are today in terms of your capabilities? And as you look to achieve that $2 billion number, how much of that is maybe organic or inorganic? And again, maybe where is the white space around the tech stack? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2024 / 10:45PM, AGCO.N - AGCO Corp at Morgan Stanley Laguna Conference

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : Perfect. And then maybe just with the last minute we have, just shareholder returns, how are you thinking about that, particularly given the cycle and some of the pressures that we're seeing in the market today? Just how are you thinking about the shareholder return?

Question: Angel Castillo - Morgan Stanley & Co LLC - Analyst : Perfect. And I think that brings us to the time. Again, gentlemen. Appreciate the time.