press release...2020/07/31 · visitors this year. "more than 100,000 of the 450,000 trade...

Press release

Fendt® is a worldwide brand of AGCO.© $year AGCO GmbH. All rights reserved. www.fendt.com | page 1 of 7

If you have any questions, please contact:

Fendt Press Office / PRPhone: +49 (0) 8342 / 77 - 343Mail: [email protected]: www.fendt.comSepp Nuscheler (mobile): +49 (0) 171 / 41 35 58 1Manja Morawitz (mobile): +49 (0) 151 / 18 03 38 43

Fendt at Agritechnica 2017 – Greatness in every fieldFendt ran its stand at this year's Agritechnica under the motto "Greatness in every field". Andthey did not disappoint, presenting a significantly expanded product range including newfeatures and innovations for almost every agricultural application. New products includeproduct enhancements in forage harvesting technology, with round balers and combi trailers,new plant protection technology and, for the first time, tracked tractors. One of the headlineacts of this year's Agritechnica, Fendt launched its new large combine Fendt IDEAL – a realcrowd-pleaser for the

450,000 visitors.

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Tangible willingness to invest in all areas and outstandinginterest in new solutions

Roland Schmidt, Vice President Fendt Marketing

Roland Schmidt, Vice President of FendtMarketing, is delighted with the high level ofinterest in the Fendt stand: "The way tradefair visitors have reacted to our productenhancements is extremely positive. Withskilled product experts on every machine, wecan give the farmers the best advice oneverything from the new Fendt 200 Vario, toFendt plant protection technology, to Fendtround balers and loading wagons. And theinterest is so concrete that we have alreadytaken orders for models across the productgroups." This is also reflected in approvalsfrom the German Agricultural Society (DLG)and the German Engineering Federation(VDMA), reporting their evaluations of visitorsurveys on the last day of the trade fair.

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"Two-thirds of German farmers want to invest. The mood is very good, especially in WesternEurope and the large agricultural markets of Germany and France", explained Dr. BerndScherer, Managing Director of Agricultural Technology at the German Engineering Federation(VDMA), at Agritechnica's closing press conference. “The main theme of the fair is digitisation,which is what two-thirds of farmers are investing in. Electrification and energy efficiency comesecond and third", he adds. AGCO/Fendt is introducing brand new concepts in these areas,including its trade-fair launch of the agrirouter™ data platform from the cross-vendorconsortium, DKE, of which AGCO/Fendt is a member. With this, farmers can now exchange dataon platforms from different manufacturers. The Fendt Xaver robot, used in swarm fleets forsowing, unites digitisation, autonomous working and electrification for the first time. "We areexperiencing an overwhelming rush for our battery-powered Fendt e100 Vario. It's very clearthat farmers are increasingly grappling with the issue of sustainability and alternativepropulsion – seeing things like the use of self-generated electricity with photovoltaics or biogasas a logical option for powering tractors. Fendt foresees a hybridised approach to machineequipment used in farming. We will still need large diesel-powered tractors and high-performance machines such as the Fendt IDEAL, the Fendt 1000 Vario and the new Fendt 900Vario MT tracked tractor in the coming years, but more efficient solutions such as the e100Vario and Fendt Xaver can be integrated into our agricultural processes," says Schmidt.

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According to initial estimates by DLG, there is an even greater proportion of internationalvisitors this year. "More than 100,000 of the 450,000 trade fair visitors come from abroad, froma total of 138 different countries. We are seeing a significant increase in visitors from EasternEurope and North America. Once again this confirms the importance of Agritechnica as theworld's leading trade fair for agricultural technology at the world's largest exhibition venue,"said DLG CEO, Dr. Reinhard Grandke. "We have welcomed customers from all over the world,including large groups of visitors from North America, Australia, New Zealand and Russia. Westill have huge growth opportunities for Fendt in those countries, and are concentrating onexporting our tractors and harvesting machines there. Agritechnica is an ideal platform forbuilding up and intensifying business relations." confirms Roland Schmidt.

With the introduction of the Fendt IDEAL, new customer segments in harvesting technology canalso be addressed. Christian Erkens, Director of Fendt Sales EME is delighted with theoverwhelming reception of the Fendt IDEAL; "For the first time we are offering a large combinein performance class 9, with a rotor threshing system and up to 647 hp. Large businesses andcontractors looking for a solution in this performance class have used the trade fair to get allthe information they need. And there has been some extremely positive feedback on the manysolutions embedded in the newly developed large combine. We are already looking forward tothe next harvest season so we can show what the Fendt IDEAL can do."

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A shower of awards for outstanding technologyAs well as the hordes of visitors to the stand and some excellent discussions at the fair, Fendtwas able to collect a whole host of awards. Fendt triumphed at Agritechnica 2017, winning"Tractor of the Year" for special tractors, 5 DLG silver medals, 3 awards for "2018 Machine ofthe Year" and 4 "DLG approved" seals. "We are particularly proud of the fact that we receivedspecial honours in almost all product groups and performance classes – from the Fendt 211 VVario, our compact narrow gauge tractor, to the large combine Fendt IDEAL, to the futuretechnologies of e100 Vario and Fendt Xaver. And we are offering just that – excellent solutionsin all areas, underlined by our trade fair motto, greatness in every field," Schmidt sums up oneof the most successful Agritechnica fairs ever for Fendt.

About Fendt

Fendt is the leading high-tech brand within the AGCO Corporation for customers who demand nothing but thebest quality from machines and services. Fendt tractors and harvesting machines work around the globe, bothon professional farms and in non-agricultural applications. Customers benefit from innovative technology toimprove performance, efficiency and profitability. Using resource-friendly solutions from Fendt helps farmersand contractors worldwide to work in a sustainable way. At its German sites in Marktoberdorf, Asbach-Bäumenheim, Hohenmölsen, Feucht, Waldstetten and Wolfenbüttel, AGCO employs around 6,000 people inthe areas of Research & Development, Sales & Marketing as well as Production, Service and Administration.www.fendt.com, www.fendt.tv, www.facebook.com/fendtglobal, www.youtube.com/FendtTV,https://www.instagram.com/fendt.global/

About AGCO

AGCO (NYSE:AGCO) is a global leader in the design, manufacture and distribution of agricultural solutions anddelivers high-tech solutions for farmers feeding the world through its full line of equipment and relatedservices. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson®and Valtra®, supported by Fuse® smart farming solutions. Founded in 1990 and headquartered in Duluth,Georgia, USA, AGCO had net sales of $9 billion in 2019. For more information, visit http://www.AGCOcorp.com.For company news, information and events, please follow us on Twitter: @AGCOCorp. For financial news onTwitter, please follow the hashtag #AGCOIR.

Safe Harbor Statement

Statements that are not historical facts, including the projections of earnings per share, sales, industrydemand, market conditions, world population, biofuel use and protein consumption, currency translation, farmincome levels, margin levels, industry inventory levels, investments in product and technology development,cost reduction initiatives, production volumes, and general economic conditions, are forward-looking andsubject to risks that could cause actual results to differ materially from those suggested by the statements.The following are among the factors that could cause actual results to differ materially from the results

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discussed in or implied by the forward-looking statements.

Our financial results depend entirely upon the agricultural industry, and factors that adversely affectthe agricultural industry generally, including declines in the general economy, increases in farm inputcosts, lower commodity prices, lower farm income and changes in the availability of credit for our retailcustomers, will adversely affect us.

A majority of our sales and manufacturing take place outside the United States, and, many of our salesinvolve products that are manufactured in one country and sold in a different country, and as a result,we are exposed to risks related to foreign laws, taxes and tariffs, trade restrictions, economicconditions, labor supply and relations, political conditions and governmental policies. These risks maydelay or reduce our realization of value from our international operations. Among these risks are theuncertain consequences of Brexit, Russian sanctions and tariffs imposed on exports to and imports fromChina.

Most retail sales of the products that we manufacture are financed, either by our joint ventures withRabobank or by a bank or other private lender. Our joint ventures with Rabobank, which are controlledby Rabobank and are dependent upon Rabobank for financing as well, finance approximately 40% to50% of the retail sales of our tractors and combines in the markets where the joint ventures operate.Any difficulty by Rabobank to continue to provide that financing, or any business decision by Rabobankas the controlling member not to fund the business or particular aspects of it (for example, a particularcountry or region), would require the joint ventures to find other sources of financing (which may bedifficult to obtain), or us to find another source of retail financing for our customers, or our customerswould be required to utilize other retail financing providers. As a result of the recent economicdownturn, financing for capital equipment purchases generally has become more difficult in certainregions and in some cases, can be expensive to obtain. To the extent that financing is not available oravailable only at unattractive prices, our sales would be negatively impacted.

Both AGCO and our finance joint ventures have substantial account receivables from dealers and endcustomers, and we would be adversely impacted if the collectability of these receivables was notconsistent with historical experience; this collectability is dependent upon the financial strength of thefarm industry, which in turn is dependent upon the general economy and commodity prices, as well asseveral of the other factors listed in this section.

We have experienced substantial and sustained volatility with respect to currency exchange rate andinterest rate changes, which can adversely affect our reported results of operations and thecompetitiveness of our products.

Our success depends on the introduction of new products, particularly engines that comply withemission requirements, which requires substantial expenditures.

Our production levels and capacity constraints at our facilities, including those resulting from plantexpansions and systems upgrades at our manufacturing facilities, could adversely affect our results.

Our expansion plans in emerging markets, including establishing a greater manufacturing andmarketing presence and growing our use of component suppliers, could entail significant risks.

Our business increasingly is subject to regulations relating to privacy and data protection, and if weviolate any of those regulations or otherwise are the victim of a cyber attack, we could incur significantlosses and liability.

We depend on suppliers for components, parts and raw materials for our products, and any failure by

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our suppliers to provide products as needed, or by us to promptly address supplier issues, will adverselyimpact our ability to timely and efficiently manufacture and sell products. We also are subject to rawmaterial price fluctuations, which can adversely affect our manufacturing costs.

We face significant competition, and if we are unable to compete successfully against other agriculturalequipment manufacturers, we would lose customers and our net sales and profitability would decline.

We have a substantial amount of indebtedness, and, as a result, we are subject to certain restrictivecovenants and payment obligations that may adversely affect our ability to operate and expand ourbusiness.

Further information concerning these and other factors is included in AGCO’s filings with the Securities andExchange Commission, including its Form 10-K for the year ended December 31, 2018 and subsequent Form10-Qs. AGCO disclaims any obligation to update any forward-looking statements except as required by law.

press release...2020/07/31 · visitors this year. "more than 100,000 of the 450,000 trade...

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