What changed in this filing

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Item 1. Business

2024-02-27 compared with 2023-03-01 · 127 added, 271 removed, 176 unchanged (69% of the section changed)

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Unless otherwise indicated, all references in this Form 10-K to “AGCO,” “we,” “us” or the “Company” include AGCO Corporation and its subsidiaries.

We are a leading manufacturer and distributor of agricultural equipment and related replacement parts throughout the world.

We are a global leader in the design, manufacture and distribution of agricultural machinery and precision agriculture technology.

Our purpose is to provide farmer-focused solutions to sustainably feed our world.

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We also provide retail and wholesale financing through our finance joint ventures with Coöperatieve Rabobank U.A., which, together with its affiliates, we refer to as “Rabobank.”

On September 28, 2023, the Company entered into a Sale and Contribution Agreement with Trimble Inc.

("Trimble") to form a joint venture ("Trimble Ag joint venture") (i) to which Trimble will contribute its agricultural business (other than certain Global Navigation Satellite System and guidance technologies) and AGCO will contribute JCA Technologies, and (ii) AGCO will acquire an 85% interest in the joint venture for cash consideration of $2.0 billion.

We believe the joint venture will create a global-leading mixed-fleet precision ag platform.

We will be the exclusive provider of Trimble’s comprehensive technology offering, supporting the future development and distribution of next-generation agriculture technologies.

Trimble offers a wide variety of user-friendly technologies compatible across brands, equipment models and farm types.

Its hardware, software and cloud-based applications span all aspects of the crop cycle, from land preparation to planting and seeding to harvest.

We expect the transaction to close during the first half of 2024.

The closing is subject to customary conditions, including compliance with antitrust and similar laws.

See Note 2 of our Consolidated Financial Statements contained in Item 8, "Financial Statements and Supplementary Data," for further information.

The following table sets forth a description of the Company’s more significant products and their percentage of net sales:

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typically used on small farms and specialty agricultural industries, as well as for landscaping, equestrian and residential uses

Replacement Parts • Replacement parts for all of the products we sell, including products no longer in production.

Most of our products can be economically maintained with parts and service for a period of ten to 20 years.

Our parts inventories are maintained and distributed through a network of master and regional warehouses throughout North America, South America, Europe, Africa, China and Australia in order to provide timely response to customer demand for replacement parts 13 % 15 % 16 %

Grain Storage and Protein Production Systems • Grain storage bins and related drying and handling equipment systems;

seed-processing systems;

swine and poultry feed storage and delivery, ventilation and watering systems;

egg production systems, and broiler production equipment 9 % 10 % 10 %

Combines • Combines, sold with a variety of threshing technologies and complemented by a variety of crop-harvesting heads;

typically used in harvesting grain crops such as corn, wheat, soybeans and rice 4 % 5 % 4 %

Hay Tools and Forage Equipment, Planters, Implements & Other Equipment • Round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners;

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used for a variety of tasks, including lifting and transporting hay crops

Combines • Combines, sold with a variety of threshing technologies and complemented by a variety of crop-harvesting heads;

typically used in harvesting grain crops such as corn, wheat, soybeans and rice 5 % 4 % 3 %

Application Equipment • Self-propelled, three and four wheeled vehicles and related equipment;

for use in the application of liquid and dry fertilizers and crop protection chemicals both prior to planting crops (“pre-emergence”) and after crops emerge from the ground (“post-emergence”)

Replacement Parts • Replacement parts for all of the products we sell, including products no longer in production.

Most of our products can be economically maintained with parts and service for a period of 10 to 20 years.

13 % 13 % 15 %

(1) The summation of these individual percentages does not total due to rounding.

Grain Storage and Protein Production Systems • Grain storage bins and related drying and handling equipment systems;

seed-processing systems;

swine and poultry feed storage and delivery, ventilation and watering systems;

egg production systems, and broiler production equipment 7 % 9 % 10 %

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(1) The summation of these individual percentages may not total due to rounding.

Precision Agriculture

We offer solutions to farmers to optimize farming performance, while improving ease of use.

We offer solutions to farmers to optimize performance, while improving ease of use.

These solutions are reflected in the table above.

We provide telemetry-based fleet management tools, including remote monitoring and diagnostics, which help farmers improve uptime, machine and yield optimization, mixed fleet optimization and decision support, with critical data privacy choices and convenient mobile tools that offer access to data and information.

These products ultimately result in improved yields or reduced waste as well as increased profitability for farmers to help to enable sustainable farming.

These products ultimately result in improved yields or reduced waste as well as increased profitability for farmers to help enable sustainable farming.

In addition, our precision agriculture solutions are based on connectivity, automation and digitalization and include satellite-based steering, field data collection, product self-adjustment and yield-mapping.

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These technologies are developed internally or sourced from third parties and integrated into our products.

We believe that these products and related devices are highly valued by professional farmers globally and are integral to the current and future growth of our equipment sales and revenues.

We believe that these products and related devices are highly valued by farmers globally and are integral to the current and future growth of our equipment sales and revenues.

The planned Trimble Ag joint venture will complement and enhance AGCO’s existing precision agriculture portfolio to deliver even more industry leading solutions across the crop cycle.

The Trimble Ag joint venture will allow us to have over 500,000 connectable machines.

combining these two precision agriculture portfolios, we will be positioned to drive outsized growth and better provide next-generation technologies to even more farmers around the world.

Market Conditions

Demand for agricultural equipment is cyclical, influenced by, among other things, farm input costs, farm income, farm land values and debt levels, acreage planted, crop yields, weather conditions, the demand for agricultural commodities, commodity and protein prices, agricultural product demand and general economic conditions, and government policies and subsidies.

The COVID-19 pandemic, the conflict in Ukraine and other economic factors continue to create volatility in the global economy, including employment disruptions, supply chain constraints and logistics interruptions.

Elevated agricultural commodity prices have supported favorable farm economics resulting in farmers upgrading and replacing aging fleets.

Supply chain constraints negatively affected industry production during 2022.

Future demand for agricultural equipment will be influenced by the factors noted above.

Despite global supply chain and logistics disruptions, farmer economics are healthy and continue to bolster market demand.

Demand for agricultural equipment is cyclical, influenced by, among other things, farm income, farm land values and debt levels, financing costs, acreage planted, crop yields, weather conditions, the demand for agricultural commodities, commodity and protein prices, agricultural product demand and general economic conditions and government policies and subsidies.

Geopolitical factors, including inflation and regional conflicts, continue to create volatility in the global economy, including the potential for energy shortages, employment disruptions, supply chain constraints and delays in deliveries, as well as logistics interruptions.

Farmer input costs have moderated from levels experienced during 2022, and easing supply chain constraints in 2023 enabled industry production to meet market demand.

Elevated agricultural commodity prices in 2022 and 2023 have supported favorable farm economics resulting in farmers upgrading and replacing aging fleets.

However, agricultural commodity prices began to moderate in the second half of 2023, and we expect lower farm income and lower commodity prices in 2024.

The future demand for agricultural equipment will be influenced by the factors noted above.

In response to market and business conditions, management continues to evaluate strategic alternatives for its grain and protein systems business.

Strategic alternatives being considered include divestiture, partnerships or other arrangements with third parties or retaining the business.

2023 Compared to 2022 Financial Highlights

Net income attributable to AGCO Corporation and subsidiaries for 2022 was $889.6 million, or $11.87 per diluted share, compared to $897.0 million, or $11.85 per diluted share for 2021.

Net sales for 2022 were approximately $12,651.4 million, or 13.6% higher than 2021, primarily due to improved market demand and favorable pricing impacts.

Net income for 2023 was $1,171.4 million, or $15.63 per diluted share, compared to $889.6 million, or $11.87 per diluted share for 2022.

Net sales for 2023 were $14,412.4 million, or 13.9% higher than 2022, primarily due to favorable pricing impacts, improved product mix and favorable currency impacts.

Income from operations was $1,700.4 million in 2023 compared to $1,265.4 million in 2022.

The increase in income from operations in 2022 was primarily the result of higher net sales and production volumes along with significant pricing to offset inflationary cost increases.

Income from operations was also impacted by impairment charges recorded during the first quarter of 2022 related to our joint ventures in Russia of approximately $36.0 million.

The increase in income from operations in 2023 was primarily the result of positive net pricing and favorable product mix, partially offset by higher selling, general, and administrative expenses and engineering expenses.

See “Financial Highlights” under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for additional information.

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We have regional competitors around the world that have significant market share in a single country or a group of countries.

Additionally, the industry is attracting technology-focused companies and start-up ventures as technology increasingly impacts all aspects of the crop cycle.

We believe several key factors influence a buyer’s choice of farm equipment, including the strength and quality of a company’s dealers, the quality and pricing of products, dealer or brand loyalty, product availability, terms of financing and customer service.

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Our dealers generally have sales territories for which they are responsible.

We believe that our ability to offer our dealers a full product line of agricultural equipment and related replacement parts, as well as our digital tools to support the dealer’s sales, marketing, warranty and servicing efforts, helps ensure the vitality and increase the competitiveness of our dealer network.

We believe that our ability to offer our dealers a full product line of agricultural machines and precision agriculture technology, as well as our digital tools to support the dealer’s sales, marketing, warranty and servicing efforts, helps ensure the vitality and increases the competitiveness of our dealer network.

We also maintain dealer advisory groups to obtain dealer feedback on our operations.

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We also assist in the development of these products or component parts based upon our own design requirements.

Our past experience with outside suppliers generally has been favorable, although in 2021 and 2022 we experienced supply chain disruptions for several key components such as the global semiconductor shortage.

Our past experience with outside suppliers generally has been favorable, although from 2020 to 2022 we experienced supply chain disruptions for several key components, such as semiconductors.

These supply chain disruptions eased over the course of 2023.

Intellectual Property

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We consider our intellectual property rights, including our right to use our trade and brand names, important in the operation of our businesses.

However, we do not believe we are dependent on any single patent or group of patents, although several of our trade and brand names are internationally recognized and are vital to our operations.

However, we do not believe we are dependent on any single patent or group of patents, although several of our trade and brand names are internationally recognized and are important to our operations.

We intend to maintain the separate strengths and identities of our core brand names and product lines.

Engineering and Research

We make significant expenditures for engineering and applied research to improve the quality and performance of our products, to develop new products and to comply with government safety and engine emissions regulations.

Engineering, Research and Innovation

We make significant expenditures for engineering and applied research to improve the quality and performance of our products, to develop new products and technologies which enhance agriculture and integrate sustainability and to comply with government safety and engine emissions regulations.

Through our newly launched AGCO Ventures, we source and fund new technologies to drive and support farmers worldwide.

This initiative actively connects our business needs with industry and market perspectives to identify investment opportunities in startup companies, corporate venture funds, incubators, accelerators, higher education and research institutions.

AGCO Ventures supports the accelerated development of critical capabilities and competencies across three strategic areas:

information management and analytics, agriculture technology and environmental and alternative fuel sources.

Wholesale Financing, Sales Terms and Accounts Receivable Sales Agreement

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These typically are specified programs, predominantly in the United States and Canada, where interest is charged after a period of up to 24 months, depending on various factors including dealers’ sales volumes during the preceding year.

We also provide financing to dealers on used equipment accepted in trade.

We generally obtain a security interest in the new and used equipment we finance.

Typically, sales terms outside the United States and Canada are of a shorter duration, generally ranging from 30 to 180 days.

Sales terms outside the United States and Canada are typically of a shorter duration, generally ranging from 30 to 180 days.

In many cases, we retain a security interest in the equipment sold on extended terms.

In certain international markets, our sales often are backed by letters of credit or credit insurance.

In certain international markets, our sales are often backed by letters of credit or credit insurance.

Sales of grain storage and protein production systems both in the United States and in other countries generally are payable within 30 days of shipment.

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Upon transfer, the wholesale receivables maintain standard payment terms, including required regular principal payments on amounts outstanding and interest charges at market rates.

Qualified dealers may obtain additional

financing through our U.S., Canadian, European and Brazilian finance joint ventures at the joint ventures’ discretion.

Qualified dealers may obtain additional financing through our U.S., Canadian, European and Brazilian finance joint ventures at the joint ventures’ discretion.

In addition, our AGCO Finance joint ventures may provide wholesale financing directly to dealers in Europe, Brazil and Australia.

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Besides contributing to our overall profitability, the AGCO Finance joint ventures enhance our sales efforts by tailoring retail finance programs to prevailing market conditions.

Our finance joint ventures are located in the United States, Canada, Europe, Brazil, Argentina and Australia and are owned by AGCO and by a wholly-owned subsidiary of Rabobank.

Refer to “Finance Joint Ventures” within Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” for further information.

In addition, Rabobank is the primary lender with respect to our credit facility and our senior term loan, as are more fully described in “Liquidity and Capital Resources” within Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Our historical relationship with Rabobank has been strong, and we anticipate its continued long-term support of our business.

Our AGCO Finance joint ventures provide both retail financing and wholesale financing to our dealers in the United States, Canada, Europe, Brazil, Argentina and Australia.

We have a minority interest in the joint ventures and they are owned by AGCO and a wholly-owned subsidiary of Rabobank.

The majority of the assets of the finance joint ventures consist of finance receivables.

The majority of the liabilities consist of notes payable and accrued interest.

Under the various joint venture agreements, Rabobank provides financing to the AGCO finance joint ventures, primarily through lines of credit.

We do not guarantee the debt obligations of the joint ventures.

In the United States and Canada, we guarantee certain minimum residual values to those joint ventures upon expiration of certain eligible leases between the finance joint ventures and end users.

We also have other guarantees with our other finance joint ventures.

Refer to Note 22 of our Consolidated Financial Statements contained in Item 8, “Financial Statements and Supplementary Data,” for additional information.

In addition, Rabobank is the primary lender with respect to our credit facility, our senior term loan and the loans related to the planned Trimble Ag joint venture, as are more fully described in “Liquidity and Capital Resources” within Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Our historical relationship with Rabobank has been strong, and we anticipate its continued long-term support of our business.

Generally, retail sales by dealers to farmers are highly seasonal and largely are a function of the timing of the planting and harvesting seasons.

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The fourth quarter is also typically a period for higher retail sales because of our customers’ year-end tax planning considerations, the increase in the availability of funds from completed harvests and the timing of dealer incentives.

Our net sales and income from operations historically have been the lowest in the first quarter and have increased in subsequent quarters.

Environmental Regulations

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However, we believe that any expense or liability we may incur in connection with noncompliance with laws or regulations or the cleanup of any of our properties will not have a materially adverse effect on us.

The engines manufactured by our AGCO Power division, which specializes in the manufacturing of non-road engines in the 75 to 500 horsepower range, currently comply with emissions standards and related requirements set by European, Brazilian and U.S.

The engines manufactured by our AGCO Power division, which specializes in manufacturing off-road engines in the 75 to 500 horsepower range, currently comply with emissions standards and related requirements set by European, Brazilian and U.S.

regulatory authorities, including both the United States Environmental Protection Agency and various state authorities.

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In some markets, such as the United States, we must obtain governmental environmental approvals in order to import our products, and these approvals can be difficult and time-consuming to obtain or may not be obtainable at all.

For example, our AGCO Power division and our engine suppliers are subject to air quality standards, and production at our facilities and sales of our products could be impaired if AGCO Power and these suppliers are unable to timely respond to any changes in environmental laws and regulations affecting engine emissions, including the emissions of greenhouse gases (“GHG”).

Production at our facilities and sales of our products could be impaired if AGCO Power and our other engine suppliers are unable to timely respond to any changes in environmental laws and regulations affecting engine emissions, including the emissions of greenhouse gases (“GHG”).

Compliance with environmental and safety regulations has added, and will continue to add, to the cost of our products and increase the capital-intensive nature of our business.

Cybersecurity

We have a cybersecurity incident response plan in place that provides a documented framework for handling high severity security incidents and includes facilitated coordination across multiple functions of the Company.

We invest in threat intelligence and are active participants in industry and government forums to strive to improve our overall capabilities with respect to cybersecurity.

We routinely perform reviews of threat intelligence and vulnerability management capabilities, while performing simulations and drills at both technical and management levels.

We incorporate external expertise in all aspects of our program utilizing best practice guidance from third-party cybersecurity advisors to provide objective assessments of our capabilities.

We maintain a cyber and internet security and privacy liability insurance coverage.

We also have policies and practices in place to address data privacy regulations.

Our cybersecurity program is reviewed and assessed by external information security specialists or by our internal audit group at least annually.

Further, we conduct annual cybersecurity awareness training for employees and targeted training for high-risk functions of the Company.

We also conduct phishing exercises and correlated education with our employees.

As part of its risk oversight role, our Audit Committee oversees cyber risk, information security and technology risk, including management’s actions to identify, assess, mitigate and remediate material cybersecurity issues and risks.

The Audit Committee receives regular reporting several times each year from our Chief Information Security Officer as well as our Chief Information Officer on our technology and cyber risk profile, enterprise cybersecurity program and key enterprise cybersecurity activities.

During 2022, we established a Cybersecurity Council comprised of members of our senior management team that is regularly briefed on cybersecurity matters and provides input to our overall approach to cybersecurity.

Our formal cybersecurity program is structured and governed around the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework, as well as other global standards and best practices.

On May 5, 2022, we discovered that we had been subject to a sophisticated cyberattack.

The attack resulted in the temporary closure of most of our production sites and parts operations.

A majority of the affected locations resumed operations within approximately two weeks after the attack was discovered.

There was some data exfiltration as a result of the attack, and a portion of the exfiltrated data subsequently was released publicly.

We do not have significant retail operations, and we do not believe that the exfiltrated data included privacy-protected consumer data or that the exfiltration was consequential.

We have invested heavily in maturing our information technology and cybersecurity operations and continue to review and improve our safeguards to minimize our exposure to future attacks.

We do not believe the cost of remediation to the impacted systems will be material.

To date, the cost of those efforts has not been consequential.

We have cyber insurance coverage, and filed a claim associated with the attack.

Regulation and Government Policy

Domestic and foreign political developments and government regulations and policies directly affect the agricultural industry and both directly and indirectly affect the agricultural equipment business in the United States and abroad.

The application, modification or adoption of laws, regulations or policies could have an adverse effect on our business.

We have manufacturing facilities or other physical presence in approximately 32 countries and sell our products in approximately 140 countries.

This subjects us to a range of trade, product, foreign exchange, employment, tax and other laws and regulations, in addition to the environmental regulations discussed previously, in a significant number of jurisdictions.

Many jurisdictions and a variety of laws regulate the contractual relationships with our dealers.

We have manufacturing facilities or other physical presence in approximately 31 countries and sell our products primarily through independent dealers and distributors in approximately 140 countries.

This subjects us to a range of trade, product, foreign exchange, employment, tax, environmental and other laws and regulations, in addition to the environmental regulations discussed previously, in a significant number of jurisdictions.

Many jurisdictions and a variety of laws regulate the

contractual relationships with our dealers.

These laws impose substantive standards on the relationships between us and our dealers, including events of default, grounds for termination, non-renewal of dealer contracts and equipment repurchase requirements.

Such laws could adversely affect our ability to terminate our dealers.

In addition, each of the jurisdictions within which we operate or sell products has an important interest in the success of its agricultural industry and the consistency of the availability of reasonably priced food sources.

In addition, each of the jurisdictions in which we operate or sell products has an important interest in the success of its agricultural industry and the consistency of the availability of reasonably priced food sources.

These interests result in active political involvement in the agricultural industry, which in turn, can impact our business in a variety of ways.

Sustainability

Our products span the entire crop cycle, from seeding to storage.

We support our farmer customers with high-quality, smart tools and exceptional customer experience to grow their operations profitably and sustainably.

Corporate sustainability is a core business imperative that underpins our strategy to build a more valuable enterprise through long-term economic, social and environmental sustainability initiatives in support of our key stakeholders and communities.

This aligns with our purpose to provide farmer-focused solutions to sustainably feed our world.

We see opportunities in every aspect of our agricultural value chain to address many of today’s most significant challenges, including food security, farmer livelihood and resource efficiency.

AGCO succeeds when our farmers succeed, and ensuring the sustainability of farmers’ operations is essential to their long-term productivity.

We are committed to accelerating progress in integrating sustainability into the design, manufacturing and distribution of smart agricultural solutions across all of our brands and geographical regions.

There are many ways we can contribute to sustainability in agriculture, as well as inside our own operations, as further highlighted below.

We believe that a successful sustainability strategy is possible only if supported by sound corporate governance.

We are working to further integrate sustainability oversight across our organization as well as management processes and systems.

During 2021, we established a sustainability council, which is an executive-level group charged with driving implementation of sustainability policies and initiatives across significant businesses, locations and functions.

The council monitors sustainability-related operational risks, opportunities and progress and assists with the removal of any barriers of integrating sustainability into our business.

The council is supported by a global sustainability core team who ensure implementation of the council’s decisions and who execute initiatives and programs.

“Green leaders” within the core team champion sustainability, drive knowledge and encourage the sharing of best practices throughout the business, providing expertise to sustainability workstreams and day-to-day operations.

In 2022, we established a Sustainability Committee within our Board of Directors.

The committee was formed to aid the Board of Directors in overseeing the Company’s sustainability strategy, policies, and programs with respect to climate change, environmental matters, workplace safety, human rights, and other sustainability matters.

The Sustainability Committee also assesses current aspects of the Company’s sustainability performance and monitors progress against publicly stated goals.

This includes overseeing processes to ensure compliance with applicable laws and regulations and programs to identify, assess and manage risks relating to sustainability matters (including those risks that are mitigated with our enterprise risk management system and the overall risk oversight and direction provided by the Audit Committee of the Board).

This significant enhancement of our sustainability governance demonstrates how we are aligning with best practices and intentionality of our governance efforts as we bring to the environmental and social aspects of our commitment to sustainability.

The Sustainability Committee generally meets three times annually.

In addition, the Board of Directors reviews sustainability matters at one meeting each year.

Farming is deeply vulnerable to the effects of climate change, which can include extreme weather events such as drought in some regions and flooding in others, rising average temperatures, and other challenges.

Climate change affects where we work and live, fueled by GHGs, particularly carbon dioxide.

Farmers can play a vital role in the critical challenge of reducing GHGs.

More than one-fifth of the world’s GHG emissions come from the food sector, and almost one-third of the world’s energy usage is attributable to agriculture and the food industries.

Climate Change

The potential impacts from climate-related risks are significant to AGCO.

We are focused not only on reducing the carbon footprint of our own operations and products but also innovating products for farmers to support them to sustainably increase their crop yields while at the same time reducing in-field GHG emissions and sequestering more carbon in the soil.

AGCO has adopted the Task Force on Climate-Related Financial Disclosures (“TCFD”) framework to guide our approach to understanding and managing climate-related risks and opportunities and to further improve transparency in our reporting.

We submitted our first full submission to the Carbon Disclosure Project (“CDP”) in 2022.

We continue to incorporate the TCFD framework into our sustainability program and remain committed to working towards addressing both the risks and opportunities that most materially impact us, while also increasing our preparedness for potential physical and transitional impacts associated with climate change risks.

Please refer to our TCFD disclosures within our Sustainability Report and our CDP Climate Questionnaire for more information in the “Sustainability” section on our website located under “Our Commitment.”

Climate change is a significant topic of discussion and will generate regulatory responses in the U.S.

and around the world.

It is impracticable to predict with any certainty the impact on our business of climate change or the regulatory responses to it, although we recognize that they likely will be significant.

And while we are beginning to conduct scenario analyses under the TCFD framework to analyze potential impacts, it will be some time before that enables us to predict with any certainty the ultimate impact of additional regulation, either directionally or quantitatively, on our overall business, results of operations or financial condition.

We assessed climate risks related to AGCO by conducting our first scenario analysis during 2021 based on guidance set forth in the recommendations from the TCFD, as well as other published frameworks.

In order to enhance our sustainability efforts, we began benchmarking ourselves against our industry peers, by gathering stakeholders and subject matter experts across various functions within our Company, in order to compile a list of potential and prioritized climate change risks and opportunities.

We then conducted a scenario analysis using two scenarios to qualitatively and quantitatively assess the strategic and financial impacts of such risks, as well as their potential likelihood.

After risks and opportunities were ranked with respect to risk exposure, we held further discussions with subject matter experts within our Company to determine preparedness and mitigation steps for the prioritized risks, as well as strategies with respect to potential business opportunities.

Risks identified included, but were not limited to, market demand for our products, technological innovation (i.e., lower carbon, energy efficient solutions), reputation, and government policy and legal constraints.

Identified possible opportunities ranged from resource efficiency, energy source alternatives, development of new products and services, development of new emerging markets and partnerships and resilience planning.

Building on the work completed in 2021, during 2022 we undertook a quantitative climate risk assessment in order to develop mitigation and resilience plans to manage physical risks.

We anticipate climate-related physical risks affecting our customers to drive the highest impacts to our future business, including ultimate potential impact to our revenue growth and business operations overall.

With our farmer-first strategy, we aim to drive success in partnership with our farmer customers, given they are affected first hand by climate change impacts.

The agricultural industry is currently responsible for a large proportion of global GHG emissions.

Farmers can potentially play a pivotal role in reducing agricultural greenhouse gas emissions through carbon sequestration.

In pursuit of identified potential opportunities, our existing and future investments in precision agricultural technologies, on-site renewable energy, energy efficient projects, as well as research and development (“R&D”) activities focused on automation, robotics, electrification and future alternative fuels provide significant prospects to capitalize on climate-related opportunities.

We currently spend approximately 3.5% of our net sales with respect to R&D activities, and we are prioritizing and advancing those projects that target these specific areas as further discussed below.

We believe the objectives resulting from our 2021 and 2022 assessments provide us with a better understanding on how to position AGCO to build resilience to changing climate conditions, but to also emerge as a strong partner to our customers and stakeholders in creating future value for our business and farmer customers, while contributing towards global efforts to combat climate-related impacts.

Rising temperatures and extreme weather events, including drought and flooding, take a heavy toll on farming in many regions of the planet.

Many farmers struggle to maintain crop yields under increasingly adverse environmental conditions.

We believe that we have a responsibility to design and build machines and precision agriculture tools that help farmers operate more sustainably.

We are also committed to a reduction of emissions within our own operations.

Please also refer to “Climate Change and Other Environmental Risks” within Item 1A, “Risk Factors” for further information.

We also publish further reporting on our corporate website at www.agcocorp.com under the heading “Our Commitment” with respect to climate risks and other sustainability program efforts.

We center our sustainability efforts around four strategic focus areas where we believe we can have the biggest impact:

• Decarbonizing our operations and products

• Advancing soil health and soil carbon sequestration through smart solutions

• Prioritizing animal welfare in food production

• Elevating employee health, safety and well-being

Decarbonizing our Operations and Products

We believe a combination of strategies will be needed to achieve AGCO’s decarbonization goals.

Our reduction plans include activities to reduce the direct GHG emissions across our global operations as well as the indirect emissions from purchased energy, such as steam, natural gas and electricity, while reducing other material emissions from across our upstream and downstream value chain.

Our current product offerings of tractors and implements reduce fossil fuel consumption and GHG emissions compared to equipment of the past.

The most direct and immediate way to support farmers in reducing GHGs is to increase the carbon dioxide equivalent (“CO2e”) efficiency of current machines, introduce and increase adoption of low carbon powertrains (such as battery electric vehicles, plug-in hybrid electric vehicles, and biogas) and lower fuel emission intensity of CO2e by replacing diesel with low or zero emission fuels.

Our aspiration is zero carbon emissions.

Solutions are being developed to provide an all-electric tractor, which is in the advanced pilot stage and targeted for commercial launch in 2024.

This tractor has the potential to be especially useful in the livestock, specialty crop and municipality applications.

Our engineering teams also are developing a prototype tractor powered by carbon-free, hydrogen-based fuel cell technology and are experimenting and researching tractors that run on biomethane and

natural gas, which are carbon-neutral or reduced emission fuels.

Our product development has been focused on reducing tractor fuel consumption without compromising performance, such as through the efficiency of our continuously variable transmissions (“CVT”s).

We also are researching ways to limit the emission of nitrogen oxides (“NOx”), gases that at high levels can be harmful to the environment and human health.

We are committed in the near term to improve the efficiency of vehicles that rely on internal combustion engines.

Our AGCO engines are Tier 4 compliant in the United States and Stage V compliant in Europe.

We were one of the first in our industry to adopt Selective Catalytic Reduction (“SCR”) technology.

SCR systems are highly efficient at treating engine-out exhaust and significantly reduce NOx emissions as well as carbon release.

Building a more circular economy is a win-win for farmers and the environment.

It saves farmers money by repurposing and extending the life cycle of their existing equipment, but also reduces the use of precious resources and raw materials in manufacturing.

The reuse of manufactured items is a cornerstone of sustainability.

We have been active in helping move farms towards a circular economy through our remanufactured product lines.

Remanufacturing promotes resource-preserving practices with energy, emission and waste savings.

Across our brands many of our components in our tractors, from electronics to engines to hydraulics, are available as remanufactured items with warranties.

Our precision agriculture solutions discussed further below are provided as both factory installed OEM solutions as well as through retrofit solutions that upgrade the performance of existing OEM solutions from any major manufacturer.

We are committed to achieving highly sustainable manufacturing operations by working to increase the use of renewable electricity through regional and market-specific opportunities, such as green supply contracts.

We have on-site solar photovoltaic systems at a number of our facilities and are adding them to other locations.

We also are increasing the use of biodiesel in our processes, applying energy and heat recovery technologies, and using biomass-based heating solutions, among other efforts.

We also are integrating sustainability into the way we manage our procurement processes.

We are working closely with suppliers to assess and advance joint sustainability efforts through the use of sustainability audits and sharing practices.

We encourage innovation and collaborative efforts by hosting workshops that focus on the topic of sustainability with our suppliers and have also established a supplier sustainability and resiliency awards program.

Advancing Soil Health and Soil-carbon Sequestration

Everything we do revolves around what we can do for farmers, and we are committed to be an innovation leader in sustainable agriculture.

Over the past several years, we have invested in both demonstration farms and agronomy research to test and demonstrate the latest technologies that support core agronomy principles.

Preserving farmlands and their productivity is becoming more challenging with advancing climate change.

Not only is ensuring farmlands’ resilience and adaptability in the face of climate change essential to farming profitability, it is also critical to global food security.

We are focused on supporting farmers to become more effective stewards of their land.

One focus of that support is maintaining soil health.

Healthy soil, rich in nutrients, is productive soil, and can serve to keep carbon harmlessly trapped within soil instead of releasing it to the atmosphere as carbon dioxide, the primary greenhouse gas.

That is why we consider preserving soil health and related carbon sequestration as one of our four pillars of sustainability.

Through our products, technology, research and outreach, we can help farmers protect soil by reducing compaction and disturbance, optimizing nutrients, maintaining moisture, resisting erosion and promoting carbon sequestration.

One new way we are supporting our farmers is by partnering with carbon credit registries to connect our machines and data so that farmers can more easily monetize the adoption of regenerative agriculture practices such as reducing tillage.

A growing number of carbon-credit registries reward farmers for sequestering carbon through changes to farming practices.

These companies typically require participating farmers to input years worth of their farming-activity data, frequently by manually entering it on a registry website, a time-consuming and error-prone process.

We have been partnering with a growing number of carbon-credit registries to automate the data-entry process for farmers.

The process is automated by connecting farmers’ machines to a farm management information system.

The majority of AGCO machines available today are connected as a standard or optional feature, a capability first introduced in 2010.

One of the biggest challenges to protecting farm soil is avoiding soil compaction which is the compression of soil that takes place as equipment crosses the field.

Yields potentially fall by as much as 50% where there is compacted soil.

Additionally, compaction compromises the soil’s ability to drain, making it more vulnerable to both flooding and drought.

Waterlogged or dry soil, in turn, leads to even lower yields, and is more likely to erode.

One important way to reduce compaction is to minimize the area over which the equipment travels.

AGCO’s smart-farming technology and precision agriculture tools provide intelligent guidance and sensing, enabling equipment to shorten routes and minimize turns.

And because our precision agriculture tools place seeds, fertilizer and other inputs exactly where they are needed for optimal outcomes, they can often reduce the amount of inputs required.

Reducing or even eliminating tillage can be helpful to soil and the environment.

Tillage can worsen erosion, remove the protective residue from previous crops, disrupt needed organic matter and microorganisms and release carbon dioxide.

Our precision agriculture tools support reduced-till and no-till farming by neatly slicing through residue and firm, untilled soil in order to pace seeds and other inputs at the ideal depth, while preserving the surrounding soil’s integrity and organic-matter content.

Soil characteristics such as organic matter, vital nutrients and moisture can vary from farm to farm, across a single farm from point to point, and over time at any one point.

Farmers rely on soil testing, typically performed by professional agronomists.

To provide farmers with repeatable, reliable, and timely soil nutrient level results, AGCO’s Precision Planting ® brand launched Radicle Agronomics TM in 2022, a powerful set of new soil sampling and soil-analysis tools designed for use by agronomists across the globe that produces accurate results in minutes.

Smarter interconnected equipment and the ability to gather, analyze and leverage data enables farming sustainability and improved profitability.

Our FUSE ® technologies allow for integration of data coming in from sensors on our equipment which can be integrated into networks that monitor how the equipment is functioning as well as crop and field conditions.

Changing climate, legal requirements and labor shortages are significant challenges for farmers worldwide.

Our FendtONE ® solution provides software tools for planning and optimizing farm work processes.

On-board diagnostics provide insights into equipment performance, so that managers can adjust the equipment and processes in real time to optimize workflow and correct problems.

Animal Welfare in Food Production

As farmers look for ways to productively raise more animals to meet rising global demands for animal protein, they also want to ensure they are raising healthy animals and doing more to protect animal welfare.

AGCO actively participates in efforts to advance industry standards and academic research in animal welfare.

We offer a range of products that help farmers monitor, control and accurately report environmental conditions around animals, facilitating practices that reduce stress, discomfort and disease, and promoting good nutrition and normal animal behavior.

Our products include aviary climate-control, housing, biosecurity, and feeding and watering systems aimed at protecting animal welfare for poultry and egg production farms.

These systems provide hens and chicks the freedom of movement along with automated watering, feeding, egg collection, ventilation and cleaning capabilities.

We also recently acquired a company that develops and manufactures a robot that moves throughout the barn measuring temperature, air quality, light and noise, enlisting artificial intelligence to spot potential health, welfare and other problems.

Digitalization of the farm not only provides valuable insight to inform product and service evolution to the farmer, but it also provides food transparencies that consumers care about.

The foundation to our approach to animal welfare seeks to align with the five domains of animal welfare, covering nutrition, environment, health, behavior and the mental and emotional state of the animal.

We continue to develop our future strategies around the design, engineering and manufacturing of industry-leading protein solutions, building upon our advanced aviary systems, precision-feeding systems and organic sheds.

During 2022, we took several significant steps to strengthen the scope and impact of our expert advisory animal welfare panel.

Established in 2021, the panel brings together an array of experts to meet at least twice a year in order to advise us on how our product solutions can help prioritize animal health and welfare at animal-raising operations while supporting productivity and profitability.

Composed of leading experts from outside our Company, the panel helps bring diverse, independent perspectives to AGCO’s animal-welfare strategy.

One of the changes we made in 2022 was to split the panel members across the species groups we serve in order to dive more deeply into the health and welfare challenges specific to each group.

Employee Health, Safety and Well-being

Safety is a top priority at AGCO, and we want to ensure that all of our workplaces protect the health and safety of our employees, as well as prevent long-term occupational health risks.

We conduct occupational risk assessments regularly, leveraging our long-term shop floor experience, and are targeting improvement in our accident incident rates in our facilities.

During 2021, we refreshed and started to embed a new enterprise-wide model to advance our culture of health and safety, built upon the success of our current health and safety program that was launched in 2014, and we have made further refinements of that program in 2022, including the appointment of a global director to lead our initiatives.

See further discussion below on Employee Health, Safety and Well-being.

Our People and our Communities

We foster a culture centered around a simple, clear purpose:

farmer-focused solutions to sustainably feed our world.

Our goal is for every AGCO employee to feel connected to that purpose, as well as to each other, and to act in accordance with our core values of Integrity, Trust, Respect, Team Spirit and Accountability.

We believe that working at AGCO should feel rewarding, meaningful, supportive and safe, and, that if it does, the results will translate to positive outcomes for farmers, our planet and our success.

AGCO Agriculture Foundation

As a farmer-focused, purpose-driven company, we keenly feel the value of community, and we look for ways to contribute to the many communities in which we operate.

We launched the AGCO Agriculture Foundation (the “Foundation”) during 2018, as a reaffirmation of our dedication to support farmers as they strive to feed the world.

The Foundation also demonstrates our support of specific United Nations Sustainable Development Goals aimed at preventing and relieving global hunger, and providing farmer-centric support to farming communities.

Through the Foundation, as well as our brand and regional engagement activities, we support a variety of non-profit organizations and local community-based groups.

The Foundation added an employee advisory board in 2022 made up of volunteer employees to strengthen our relationship with our AGCO communities and employees, and to guide the Foundation’s resources to promote inclusive agricultural prosperity and improved livelihood for farmers in our AGCO regions.

Our farmers continue to face increased challenges due to climate change.

Our goal is to ensure that farmers have the machines and technologies they need to sustainability feed the world.

Our products enable smart farming to help farms and machines run more efficiently with lower inputs and higher yields.

Our precision agriculture products enable farmers to precisely place optimal amounts of inputs such as fertilizer, weed control and seeds.

In addition, we are committed to driving down machinery emissions through battery powered electric tractors and other alternative fuel propulsion solutions to help farmers decarbonize and optimize their operations.

AGCO also supports retrofit products to customers which provide more flexibility, extend product lifecycles, and generate less emissions compared to new products.

While much of our focus is on innovating sustainable solutions, we are also committed to integrating sustainability into our core business strategy.

Our low-carbon transition plan establishes key levers to reduce our climate impact by addressing both operational and value chain emissions.

In our operations, we are embracing renewable energy and furthering initiatives to make our sites more energy efficient.

Throughout our value chain, we attempt to deliver sustainable product solutions, optimize our transportation and logistics networks and engage supply chain partners to help drive environmental progress.

Human Capital

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Through ongoing talent development, comprehensive compensation and benefits, and a focus on health, safety and employee well being, we strive to help our employees in all aspects of their lives so they can do their best work.

Employees are further guided by our global Code of Conduct, which builds on the foundation of our embedded core values:

Integrity, Trust, Respect, Team Spirit and Accountability.

Employees are further guided by our global Code of Conduct.

We also maintain a global anonymous reporting mechanism for the receipt, retention and treatment of complaints or concerns regarding accounting or other possible violations of our global Code of Conduct.

While fluctuations may occur within our workforce from time to time, we track and attempt to manage our attrition rates, while also ensuring that key positions critical to our performance our appropriately staffed.

We also analyze employee departure data so that we can continually improve upon the employee experience.

During 2022, our employee turnover rate related to voluntary terminations was approximately 9.5% as compared to 7.7% in 2021.

Unions, Collective Bargaining Agreements and Work Councils

Of our worldwide employees, approximately 5,700 are located in the United States and Canada.

Of our worldwide employees, approximately 5,800 are located in the United States.

Many of our global manufacturing employees, and some other employees, are represented by unions and works councils, and a significant number of our employees are subject to collective bargaining agreements that typically are for terms of three to five years and are renegotiated in connection with renewals.

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Some examples of key programs and initiatives that we are focused on to enable us to attract, retain and develop our diverse workforce are described below.

To facilitate talent attraction and retention, we strive to make AGCO an inclusive and safe workplace, with opportunities for our employees to grow and develop in their careers, supported by strong compensation, benefits and health and wellness programs, and by platforms that build connections between our employees and their communities.

Over the past year, our employees have completed online, self-directed instructor-led courses across a broad range of categories – leadership, inclusion and diversity, professional skills, technical competencies and compliance.

Compliance training includes education in AGCO’s culture and values and compliance with our global Code of Conduct, which, in turn, includes compliance with anti-bribery/corruption laws and policies, compliance with data privacy and cybersecurity protocols,

conflicts of interest, discrimination and workplace harassment policies and sexual harassment policies.

To facilitate talent attraction, engagement and retention, we strive to make AGCO an inclusive and safe workplace, with opportunities for our employees to find success in their current roles as well as grow and develop in their careers, supported by strong compensation, benefits and health and wellness programs, and by platforms that build connections between our employees and their communities.

Our employees engage in learning and development targeted to their current roles and future career aspirations.

This includes completing online, self-directed and instructor-led courses across a broad range of categories – leadership, inclusion and diversity, professional skills, technical competencies and compliance.

We are deeply committed to identifying and developing the next generation of top-tier leadership with a special focus on diverse and technologically innovative talent.

We conduct annual in-depth talent and succession reviews with our senior leadership team that focus on accelerating talent development, strengthening succession pipelines, and advancing diversity representation for our most critical roles.

This analysis was reviewed by our Board’s Talent and Compensation Committee in 2022 and is planned for review in March 2023.

Our diversity representation targets have been set for completion through 2030 with annual targets and quarterly progress reporting planned during that period.

Furthermore, we have a performance management process that includes annual goal setting, mid-year reviews and annual performance appraisals.

We now conduct quarterly in-depth talent and succession reviews with our senior leadership team that focus on accelerating talent development, strengthening succession pipelines and advancing diversity representation for our most critical roles.

In 2023, we expanded our focus, not only looking at rising leadership talent but also identifying the expert talent within the organization that we must engage, develop and retain to deliver on our organizational goals.

We review our succession plans with our Board’s Talent and Compensation Committee annually.

Furthermore, we have a performance management process that includes annual goal setting and annual performance appraisals.

Both employees and managers play an active part in our performance management process, promoting a culture of accountability that fosters employee development.

We regularly review surveys of market rates for jobs to ensure our compensation practices are competitive.

We continue to strive to offer a variety of working arrangements, including flexible schedules, telecommuting and job sharing, to help employees manage work and life balance.

During 2023, our employee turnover rate related to voluntary terminations was approximately 7.5% as compared to 9.5% in 2022.

We periodically review surveys of market rates for jobs to ensure our compensation practices are competitive.

We continue to strive to offer a variety of working arrangements, including flexible schedules to help employees manage work and life balance.

We are committed to providing total rewards that are market-competitive and performance-based, driving innovation and operational excellence.

Our compensation programs, practices, and policies reflect our commitment to reward short- and long-term performance that aligns with, and drives stockholder value.

Our compensation programs, practices, and policies reflect our commitment to reward short and long-term performance that aligns with and drives shareholder value.

Total direct compensation is generally positioned within a competitive range of the market median, with differentiation based on tenure, skills, proficiency and performance to attract and retain key talent.

In addition to salaries, our compensation programs include annual incentive bonuses, stock awards, and participation in various retirement savings plans, dependent upon the position and level of employee, and the countries in which we operate.

We also invest in talent development initiatives to support the ongoing career development of all employees, including learning management and leadership programs targeted towards female and minority populations.

In addition to salaries, our compensation programs include annual short-term and long-term incentive programs and participation in various retirement savings plans, dependent upon the position and level of employee and the countries in which we operate.

We also invest in talent development initiatives to support the ongoing career development of all employees, including learning management and leadership programs.

Health, Wellness and Safety

We are also committed to the health, safety and wellness of our employees, striving to work safe, every day in every way.

As previously discussed, our health and safety program focuses on risk reduction and safety management systems that promote preventative measures.

In response to the COVID-19 pandemic, we have implemented and continue to implement significant changes that we have determined were in the best interest of our employees, as well as the communities in which we operate, and which comply with government regulations.

During 2020 and 2021, we ensured safety protocols were in place for employees who were required to work onsite, including partitioning screens in factories and enhanced cleaning and sanitation practices.

We continued to apply these protocols during 2022 throughout our operations as conditions warranted, regularly evaluating changing conditions as a result of emerging variants of COVID-19 and adjusted government requirements to ensure we provide a safe environment for employees, visitors and third party contractors.

For employees that can work from home, we have deployed new technologies to strengthen virtual connectivity across the globe.

Our global safety initiative is a company core value.

We continued the journey with the goal of achieving world-class health and safety results during 2022.

We have implemented many leading and lagging indicators, with each being critical key performance.

Indicators that are measured with goal metrics that aid in closing gaps across our global operations.

Leading indicators are measured using proactive prevention programs that are designed to reduce the overall risks by implementing risk assessments, ergonomic assessments and incident investigation to include detailed root cause corrective action analysis, near-miss corrective actions, and behavioral-based safety programs.

We are committed to the health, safety and wellness of our employees, striving to work safe, every day in every way.

Our health and safety program focuses on risk reduction and safety management systems that promote preventative measures.

We have implemented many leading and lagging indicators for enabling employee health and safety.

Leading indicators are measured using proactive prevention programs that are designed to reduce overall risks by implementing risk assessments, ergonomic assessments and incident investigations to include detailed root cause corrective action analysis, near-miss corrective actions, and behavioral-based safety programs.

The lagging indicators are measured by each of our facilities and demonstrate the current state regarding injury rates such as total case incident rate (“TCIR”).

We reported a global TCIR of 2.18 in 2022, which is a 15% decrease compared to 2021.

Our global safety initiative includes the intention to add 80 AGCO sites into the program during 2023, up from 53 sites in 2022, ensuring that we are capturing and regularly reporting safety statistics to ensure a complete understanding of our global safety performance.

We will continue to focus on the leading indicators in 2023 with a major emphasis on risk reduction by completing projects using tools such as risk/ergonomic assessments and behavioral-based safety programs.

All sites worldwide have established objectives and targets outlined in a three-year glide path to aid in achieving a target regarding TCIR equal to 1.50 or less by 2025.

In addition, during 2021 and 2022, we designed and implemented health, safety and well-being training programs for a large portion of our employees, with most of these employees completing the assigned training.

We believe that our employees’ unique and diverse capabilities positively impact our success.

While we faced numerous external and internal challenges in light of the global pandemic, we were able to effectively advance our Diversity, Equity and Inclusion (“DE&I”) initiatives.

We demonstrated our commitment in this regard by creating the role of global director of DE&I.

This role’s exclusive responsibility is to serve as the catalyst that drives our progressive DE&I footprint and best-in-class performance.

Beginning in 2021 and throughout 2022, we developed and implemented training resources to ensure consistency in inclusion awareness and anti-bias principles from our executive team to the shop floor.

Our commitment to diversity and inclusion starts at the top with a highly skilled and diverse board.

This is the third year in a row we achieved double digit improvement in our global TCIR rate.

We reported a global TCIR of 1.86 in 2023, which is an approximate 15% decrease compared to 2022.

In 2023, we focused on a global safety initiative to collect data from all sites, which added 80 additional AGCO sites into the program during 2023, up from 53 sites in 2022.

This initiative is designed to ensure that we are capturing and regularly reporting safety statistics to ensure a complete understanding of our global safety performance.

We intend to continue to focus

on the leading indicators in 2024 with an emphasis on Behavior and Culture, high frequency injury reduction and high severity risk reduction.

We will be targeting improvement actions at our sites based on the inputs we receive from internal and vendor surveys that will drive further feedback.

All sites worldwide have established objectives and targets to aid in achieving a target TCIR equal to 1.50 or less by 2025 .

Our employees are our greatest asset and a key enabler of our success.

We remain committed to advancing diversity, equity and inclusion ("DE&I") in our workplace to ensure every employee thrives and feels a sense of belonging.

Our success will be impacted by how well diversity, equity and inclusion are embedded into our organizational culture and business practices.

Our objective is to increase diversity, strengthen inclusion and advance equity.

To accomplish this, in 2023, we developed a new strategy focused on four foundational pillars, Talent, Culture, Marketplace and Community.

In addition, we identified key enablers that will ensure we meet our overarching objectives – Leadership Engagement, Accountability, Education and Communication.

This newly designed framework will drive sustainable progress and best-in-class performance.

Our commitment to diversity and inclusion starts at the top with a highly-skilled and gender-diverse board.

Three of our ten board members are women.

Women represent approximately 13% of our full-time executive positions at the senior vice president and vice president levels, and approximately 19% of our overall full-time management-level employees.

We have been nationally recognized in the United States as a female-friendly employer of choice.

We are committed to increasing the percentage of female representation in our full time management-level employee group and our overall global employee base, as well as to further initiatives for compensation equity, employee engagement, development and inclusion.

We believe that incorporating DE&I initiatives into our everyday business practices enhances innovation and enables diversity of thought.

Building upon our core values, our employees value learning from different perspectives and welcome the opportunity to work with those of diverse backgrounds.

Through our global DE&I initiatives, employees take part in robust training, such as creating an inclusive environment and cultural training.

We also provide our employees with employee resource groups (“ERG’s”), such as AGCO’s Global Women’s Network and AGCO’s Black Employee Network, to help foster a diverse and inclusive workplace as well as provide for the growth and development of underrepresented groups.

We plan to expand our employee resource groups in the future, with executive sponsorship for each ERG.

We believe that embedding inclusion and equity into our everyday business practices enhances innovation and delivers better business results.

Building upon our cultural beliefs, our employees value learning opportunities that increase awareness and understanding of the diverse cultures that exist within our workforce and throughout the countries in which we operate.

Through our global DE&I initiatives, employees take part in robust training, including creating an inclusive environment and cultural training.

We established employee resource groups (“ERGs”), such as AGCO’s Global Women’s Network and AGCO’s Black Employee Network, to help foster a diverse and inclusive workplace as well as support the growth and development of underrepresented groups.

To support the global expansion of our ERGs, we have established a new framework to accelerate growth and organizational impact.

Through our DE&I initiatives, we encourage employees to become involved in their communities, contributing time and talent for the improvement of the communities in which they live and work.

During 2022, we administered a global employee engagement and experience survey for all of our employees to seek feedback on the employee experience.

79% of our workforce participated in the survey with a 69% level of favorable engagement with respect to our core employment engagement index metrics.

We intend to repeat the survey on an annual basis.

During 2023, we administered our third global employee experience and engagement survey.

The survey is an opportunity for all employees across our offices and shop floor locations worldwide to provide feedback on what we are doing well and where we can improve.

84% of our workforce participated in the survey, with a favorable engagement result of approximately 71%, which aligns with our core employee engagement index metric.

We intend to repeat the global survey annually, and in 2024 we will increase the cadence of measurement of engagement as part of our commitment to delivering an exceptional employee experience across the employee lifecycle.

Human Rights Policy

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business