Diego LopezYu Wu

Steven WisnoskiBryan Fritz

Agenda• Thesis/Catalysts• Company Overview• Financialso Comparables

• Risks• DCF Model

Thesis• Earnings Announcement: 10/30

• Expansion for Fendt German Manufacturing Facility and Massey Ferguson in France.o $223 Million investment towards expansion

• General increase in population means continual agricultural growth.

AGCO OverviewFounded in 1991, HQ in Duluth, Georgia

Stock price at time of pitch: $47.36

Fair Value: $66.36

Operates under four brands:1. Challenger2. Valtra3. Fendt4. Massey Ferguson

• Products are marketed towards large-scale farmers and contractors

• Pride themselves on higher output with lower operating costs

• Based in Finland and growing reputation in South America

• Superior because tractors are specifically designed for each individual customer

• Customization possibilities

• Offers a full range of tractors from ruggedly simple to high-specification

• Technological enhancements like Selective Catalytic Reduction (SCR) and satellite-based automatic steering

• 20M expansion investment in France, announced 9/12

• Headquartered in Germany and is the leading high tech brand for customers

• New Vario 700 Tractor offers the cutting edge technology in a lower horsepower model

• $223M expansion in Germany, currently in effect

Quarterly Sales By Region

Regional Growth

Population Growth

Brazil

• Large growth forecast in agriculture productiono Large Infrastructure needs to reach

this growth forecast • Agricultural exports have grown nearly 5x

since 2001o Creating large agricultural

economic presence

Brazil• AGCO had announced that it will invest

approximately $55 million through end of 2012 to modernize 3 plants in Brazil.

• This expansion posted higher sales in Brazil on Q2 2012 with an 8.2% compared increase to the first six months of 2011 on a currency basis.

Risks• Seasonality of agricultural industry

o Drastic U.S. sales increase• Exchange rate• Europe• Regulatory

o Externality costs Engineering, capital expense.

Acquisition

• In 2011, AGCO acquired GSI Holding Corp. for $932.2M.o $0.45 EPS accretion expected from GSI Holding

Corp.

• Acquired 80% of Dafeng Machinery Company for about $27M

• Acquired the remaining 50% interest of Laverda Spa for about $88.3M

• Acquired 50% of AGCO-Amity JV for about $25M

Earnings

Insider Activities

Long-Term Performance

Competitor Analysis

Questions?

Ticker: AGCOPrice at Time of Pitch: $47.93

Fair Value: $71.16

Diego LopezYu Wu

Steven WisnoskiBryan Fritz