Worldwide Farm Machinery Markets New Delhi, 6 th December 2013 Gerd Wiesendorfer Coordinator Agrievolution Economic Committee 1 Fourth World Summit on Agriculture Machinery December 5-6, 2013 ~ New Delhi, India

Business climate in the global industry is favourable … Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 2

… with clear upward trends in most regions Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 3

Increasing orders for agricultural machinery in major markets … Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 4

… lead to expansionary turnover expectations for the next months. Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 5

Fläche für Grafik Source: VDMA (Forecast status October 2013) Development of the agricultural machinery production Index 2008 = 100, based on nominal terms in Euro e World European Union China North America India Latin America Production has experienced a very dynamic phase in the past 5 years Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 6

Regional shifts of production – with China being a major driver Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 7

Strong tractor markets 2013: America and Asia Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 8 New tractor sales (in units)

New production and market peak 2013 Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 9

Weaker drivers for new machinery demand in Western Europe, but basic economic conditions remain favourable Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 10

General conditions for the global markets 2014/2015 Comparatively good prices for agricultural commodities and slightly lower costs Investor´s liquidity predominantly on a good level Conditions on the capital market generally good Higher degree of mechanization due to a growing demand for efficiency Structural change increases the demand for high capacity machines Agricultural policy will continue to be a stimulus for investment, following different politcal objectives Emerging markets: Higher degree of mechanization, modernization of fleets East Europe: Self-sufficiency gains (food) and export position (grains) Europe: Promotion of smaller and diversified structures + „greening“ USA: Income stability for farmers and promotion of bioenergy production Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 11

Decline of market and production volume 2014 remains very limited Fourth World Summit on Agriculture Machinery ~ December 5- 6, 2013 ~ New Delhi, India 12