32nd German Brazilian Economic Meeting Hamburg, 1st September, 2014
Senior Vice President and General Manager for AGCO South America André Carioba Senior Vice President and General Manager for AGCO South America
Agenda 1 AGCO Overview 2 Brazilian Agribusiness Overview 3 Brazilian Tractors and Combines Market
Global Presence 23 Manufacturing sites 7 assembly sites 20.320 employees 3.150 dealers + de 140 countries
AGCO South America: Strong Distribution Argentina Bolívia Colômbia Equador Peru Uruguai Costa Rica República Dominicana Honduras Venezuela Chile Panamá Strong Distribution 550 Authorized Dealers in South America Brazil Paraguay
AGCO South America: Production Canoas - RS Tractors, Sprayers and backhoes Production Capability : 2,400/month Area: 200,000 m2 Employees: 1,705 Mogi das Cruzes – SP Tractors and Engines Production Capability: 1,320/month Area: 140,000 m2 Employees: 1.020 Santa Rosa – RS Combines Production Capability : 200/month Area: 260,000 m2 Employees: 767 Ibiruba – RS Implements Production Capability: 330/month Area: 200,000 m2 Employees: 373 Marau - RS GSI Storage and equipment for the production of proteins Area : 126,000 m2 Employees: 452 Ribeirao Preto - SP Santal – Production of combines, planters and equipment for sugar cane Area: 58,000 m2 Employees: 352 Jundiai - SP AGCO Parts Distribution Center Total Area: 14,653 m2 Area: 18,000 m2 Employees: 96 General Rodriguez - Argentina Production of and AGCO Power engines The unit is capable of producing 3,5 thousand tractors and 2 thousand engines annually. Employees: 171
Agenda 1 AGCO Overview 2 Brazilian Agribusiness Overview 3 Brazilian Tractors and Combines Market
Agribusiness - Brazil’s Available Area Total Area 100%: 851.5 Mi. Hect. Urban area, Native Forest and Protected 56%: 478.6 Mi. Hect. Total Agricultural Area 44%: 372.9 Mi. Hect. Duplicate Use 6%: 22.8Mi. Hect. Available 34%: 128.1 Mi. Hect. Pasture 43%: 158.7 Mi. Hect. Agriculture15%: 55.9 Mi. Hect. Sugarcane 2%: 8.9 Mi. Hect. Planted Forest 2%: 7.1 Mi. Hect. Source: Carlos Cogo Consultant
Record grain production In Tons Fonte: Conab ( jun/14) – *Projection Carlos Cogo
Brazil: Agribusiness 2013 Results Total GDP = US$ 2,065 trillion Agribusiness corresponded to 21,4% (US$ 442,8 bi) of Brazil GDP in 2013 Agriculture (70%) US$ 308,2 billion Livestock (30%) US$ 134,6 billion Exports US$ 242,2 billion Jobs (Total Brazil) 95,2 million Other Sectors US$ 142,2 billion Agribusiness US$ 100,0 billion Other sectors 63,8 million Agribusiness 31,4 million
Brazil: Main Agribusiness Exports Destinations 2013
Agenda 1 AGCO Overview 2 Brazilian Agribusiness Overview 3 Brazilian Tractors and Combines Market
Brazil has a small fleet of tractors and combines per area. Brazil has a small fleet compared to US and EU, even with the growth in production and area . Tractors: Hectares / Machinery Combines: Hectares / Machinery Fontes: Fao/Ibge/Carlos Cogo Consulting * OBS: computed only machines in working condition (scrapped excluded)
Brazil Tractor Market Evolution The market average 13% growth 2005-2014* -10/15% over 2013 13% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (estimate ANFAVEA*)2014 (estimate ANFAVEA*)2014 (estimate ANFAVEA*) YTD 2014 (July 2014)YTD 2014 (July 2014)YTD 2014 (July 2014)
Brazil Combine Market Evolution The market average 19% growth 2005-2014* -10/15% over 2013 19% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (estimate ANFAVEA*)2014 (estimate ANFAVEA*)2014 (estimate ANFAVEA*) YTD 2014 (July 2014)YTD 2014 (July 2014)YTD 2014 (July 2014)
AGCO’s Brazil main export markets: Tractors + Combines AGCO export markets 2013 Argentina Argeria Bolivia Paraguay Chile Other 62 countries Venezuela
Thank you!