2016 ANNUAL REPORT ENGiNEERiNG FOOd SeCurity - AGCO

Capital AllocationWe intend to continue investing in our business toimprove efficiency and maintain the pace of our newproduct introductions. Over the last decade, we have builta solid capital structure and keeping our investment gradecredit rating is a priority. AGCO will remain opportunisticwith regards to acquisitions in order to add new productsand expand our geographic reach.Our healthy balance sheet and strong cash generationhas enabled us to return cash to shareholders and thesedistributions will remain an important component of ourlong-term capital allocation plan. Over the past three years,we executed share repurchases of 1 billion which reducedour share count by approximately 20 percent. Our Boardof Directors has approved a new 300 million repurchaseprogram which expires in December 2019 and is expectedto be funded with operating cash flow.In summary, we are taking aggressive actions to align ourcosts and working capital with the weaker market demandthat we are facing today. However, our long-term view remainsoptimistic for our industry and for AGCO, and our strategy isaimed at growing our business and improving the returns forour shareholders as we continue to provide solutions thatwill help engineer global food security.our long-term view remainsoptimistic for our industry andfor AGCO, and our strategy isaimed at growing our businessand improving the returnsfor our shareholders as wecontinue to provide solutionsthat will help engineer globalfood security.”The AGCO team – approximately 20,000 strong – is energizedand committed, and I am deeply appreciative of all their talent,efforts, and determination. Collectively, we are grateful forour customers, dealers, and partners who ultimately driveour success. And finally, we are thankful to our shareholdersfor your continued confidence across the business cycle.We look forward to working with all of you for manyprosperous years ahead.Sincerely,Martin RichenhagenCHAIRMAN, PRESIDENTAND CHIEF EXECUTIVE OFFICER2016 Annual Report AGCO 09

OUR COMMITMENT TOengINEERING foodsecurityEnsuring the world has enough to eat isnot an easy task, but it is a key driver behind ourbusiness – the business of supporting food producersaround the world. Through responsible managementof its portfolio of brands, AGCO is one of the world’sleading agricultural industry influencersand is actively involved in all stages of theagricultural life cycle.AGCO is focused on delivering practical solutions toincrease agricultural production with mechanizationand boost productivity using precision farmingtechnology. We also encourage healthy animalprotein production with efficient and responsiblesolutions and support the delivery of more food tomarket by reducing post-harvest losses with betterharvesting and grain handling.Our global expertise and innovative technologiesare focused on meeting the challenges that farmersface around the world. Through our developmentand innovation commitments, our goal is toempower farmers to find solutions to thosechallenges. That empowerment will help uscollectively engineer food security and ensurethe sustainability of our business, our industry,and our planet.As a global thought leader, AGCO supports theUnited Nations’ Sustainable Development Goalsand plays a critical role in notably addressingGoal 2* to end hunger, achieve food security, improvenutrition, and promote sustainable agriculture;and Goal 12* to ensure sustainable consumptionand production patterns such as reducingpost-harvest losses.United Nations SUSTAINABLE DEVELOPMENT GOALS** sustainabledevelopment.un.org/sdgs10 AGCOAGCO20162016AnnualAnnualReportReport

Development and growth are integral toensuring global food security while creatingvalue for all our stakeholders. At AGCO,we continue to strengthen our businessthrough acquisition, collaboration, andoperational efficiency, and our multi-brandstrategy helps us advance food securityaround the world.ELOPENDE VTSWe are committed:MENT COMMITM To proactively grow our product offering andgeographic reach to address food securityand help reduce post-harvest losses To meet the growth in changing diets To develop our relationships with strategic partners To grow and develop our multi-brand strategyaround the world To operate efficiently, drive ROI and create valuefor all stakeholdersResearch and development are at thecore of AGCO’s innovation engine anddrive our leadership in advancingagricultural technology.Our ongoing strategic investments inR&D bring upgrades across all our brands,maintain a high rate of new productlaunches, and deliver innovative solutionsto drive growth and maximize the valueof our portfolio of world-leading brands.We are committed:OENTSI NNVAT ION COMMTIM To invest in R&D to drive leadership in advancingagricultural technologies To launch new and innovative products andupgrades across all brands To help farmers optimize their farms withFuse Technologies To invest in state-of-the-art manufacturing To promote thought leadership in the emergingbiomass sector20162016AnnualAnnualReportReportAGCOAGCO 11

AGCO’Sfood securitysolutionsCOMMITMENTTO REDUCingPOST-HARVESTLOSSesAGCO’s commitment to post-harvestloss reduction is at the core ofinvestments in its GSI business ofcutting-edge, scalable technologiesfor grain and perishables storage.The 2016 acquisition of Cimbria, a leadingmanufacturer of products and solutions forthe processing, handling, and storage of seedand grain, has added global leadership in theseed-handling industry as well as new grainmarkets to the AGCO portfolio. This supportsbetter inputs for farmers and helps reducepost-harvest losses.With its strong GSI family of brands, whichinclude grain handling and seed-processing,as well as poultry, egg, and swine production,AGCO is well positioned to meet future shiftsin global dietary demands.12 AGCO 2016 Annual Report

Responsibly meeting the challengeof protein demandGlobal demand for high quality protein is increasing due to anexpanding middle class and improving animal welfare is becomingmore critical. Through GSI’s animal protein production brands,we are meeting these challenges by providing the most efficientanimal production systems. As a leader in commercial eggsystems, GSI offers one of the most comprehensive globalportfolios for commercial egg production. In Europe and NorthAmerica, GSI is a leader in enriched and cage-free systems andwill continue to lead the industry with its launch of next generationaviary solutions as well as through its continuous commitmentto product innovation for developing leading products for thecommercial egg production market worldwide.PROMOTing INNOVATIVESOLAR-POWERED COLDSTORAGE SOLUTIONSFood storage systems can be a critical way of boosting farmproductivity and food security in Africa, where significant lossesoccur annually due to inadequate post-harvest infrastructure.A promising innovation is a village-level, solar-powered coldstorage for perishables. This will allow smallholder farmers toreduce post-harvest losses and improve their market accessby extending the shelf life of perishables until they can be soldat a fair price.Annual2016AnnualReportReport2016 AGCO 13

AGCO’Sfood securitysolutionsCONTINUEDINVESTING INNEW PRODUCTLAUNCHES ANDUPGRADESWe are committed to deliveringinnovative, practical solutions thatempower farmers, shape the longterm sustainability of agriculture,and strengthen food security aroundthe world. Our Global Series tractorplatform, for example, representsthe heart of AGCO and what we do –provide machinery to feed the world.The Global Series is an investment in thefuture that addresses tractor productionand development in the all-importantlow to medium horsepower sector. Thisplatform expresses our commitment tobrand-new designs, to delivering sustainablemanufacturing in all parts of the world, andto transforming agriculture through theproduction of machines with appropriatetechnology to support a wide range offarming sectors.14 AGCO 2016 Annual Report

continuing investmentin fuse TechnologiesWe are continuing our investment in our Fuse initiative,developing precision farming solutions to drive productivityand increase yields.The past year marked the most significant yet for FuseTechnologies. New development partnerships will allowAGCO to deliver farm optimization services to its customersand give farmers actionable insights into their fleets, fields,and farms to support waste reduction, yield increases, andimproved profitability.INVESTING IN STATE-OFTHE-ART MANUFACTURINGAGCO’s manufacturing facilities are quality-driven and state-ofthe-art, and we are constantly making investments to ensurewe stay efficient, innovative, and on the cutting edge.In 2016, our tractor manufacturing facility in Beauvais, Francewon the Factory of the Year 2016 award from L’Usine Nouvelle,France’s leading industrial magazine. Some 14,500 MasseyFerguson tractors roll off the assembly lines each year at thissite. An implementation of lean manufacturing standards hasbrought high levels of efficiency and agility that let us respondquickly to changing market demands.Annual2016AnnualReportReport2016 AGCO 15

AGCO’Sfood securitysolutionsCONTINUEDIncreasing farm productivity and food security is at theheart of AGCO’s Africa strategy.Drivingagriculturalmechanizationin AfricaOur 150-hectare Future Farmin Zambia now features the fullline of Fuse technologies. Itsfacilities, which also include cropdemonstration plots and GSI grainstorage and protein productionunits, provide training in agronomyand modern agricultural practicesto farmers, equipment operators,and service people. Plans for asecond Future Farm in Frenchspeaking West Africa are underway.AGCO’s partnership with theinternational non-profit organizationCultivating New Frontiers in16 AGCO 2016 Annual ReportAgriculture is part of our visionto transform African agriculturethrough inclusive, sustainablemechanization solutions. Ournew Massey Ferguson FarmMechanization Package, whichconsists of a tractor and multiplecompatible implements, is aimedat farmers taking their first stepsin mechanized agriculture.Our annual Africa Summit bringstogether international leaders toshare innovative approaches tofurther the development of theagricultural sector on the continent.

LEADING THE WAY IN THE EMERGINGBIOMASS INDUSTRYAGCO is involved with developing the emerging biomassindustry. We are working with academia and leading businessesto perfect best practices, and developing the right equipmentto get crops off the field and to market as quickly andefficiently as possible.AGCO’S SOLUTIONS ARE DrivINGshareholder returnsOur global expertise and localized knowledge ensures we aresupporting sustainable agricultural development while drivingshareholder returns. Our focus remains on efficient operations,global purchasing excellence, research and development,and growth of our product offerings and geographic reachof our family of brands.2016 Annual Report AGCO 17

officersAND DIRECTORSSENIOR MANAGEMENT11 Martin H. RichenhagenChairman, President andChief Executive Officer9 Roger N. BatkinVice President,General Counseland Corporate Secretary20 Andrew H. BeckSenior Vice President,Chief Financial Officer15 Gary L. CollarSenior Vice President,General Manager,Asia/Pacific and Africa*Not an Officer or Director.18 AGCO 2016 Annual ReportBOARD OF DIRECTORS12 Robert B. CrainSenior Vice President,General Manager,Americas7 Ulrich Stockheim*Global Head of CorporateCommunications andMarketing2 Helmut R. EndresSenior Vice President,Engineering6 Eric P. HansotiaSenior Vice President,Global Crop Cycle andFuse ConnectedServices14 Lucinda B. SmithSenior Vice President,Global Business Services13 Rob SmithSenior Vice President,General Manager,Europe and Middle East21 Hans-Bernd VeltmaatSenior Vice President,Chief Supply Chain Officer17 Thomas F. WelkeSenior Vice President,Global Grain andProtein, GSI11 Martin H. RichenhagenChairman, President and ChiefExecutive OfficerAGCO16 Roy V. ArmesFormer Executive Chairman,President and CEOCooper Tire andRubber Company19 Michael C. ArnoldFormer President and CEORyerson Inc.3 P. George BensonProfessor of Decision Sciencesand former PresidentCollege of Charleston5 Wolfgang DemlFormer President andChief Executive OfficerBayWa Corporation

AGCO 2016 BOARD COMMITTEES4 Luiz Fernando FurlanFormer Minister ofDevelopment, Industryand Foreign Trade of Brazil18 George E. MinnichFormer Senior VicePresident and CFOITT Corporation10 Gerald L. ShaheenFormer Group PresidentCaterpillar Inc.8 Mallika SrinivasanChairman and CEOTractors and FarmEquipment Limited (TAFE)1 Hendrikus VisserFormer ChairmanRoyal Huisman Shipyards N.V.Executive CommitteeMartin H. Richenhagen, ChairmanP. George BensonWolfgang DemlGeorge E. MinnichGerald L. ShaheenHendrikus VisserAudit CommitteeGeorge E. Minnich, ChairmanMichael C. ArnoldP. George BensonHendrikus Visser32541216911Compensation CommitteeGerald L. Shaheen, ChairmanRoy V. ArmesLuiz Fernando FurlanGeorge E. MinnichFinance CommitteeHendrikus Visser, ChairmanGeorge E. MinnichGerald L. Shaheen1317 16781014151920Governance CommitteeP. George Benson, ChairmanMichael C. ArnoldWolfgang DemlMallika Srinivasan (Guest)Hendrikus VisserSuccession Planning CommitteeWolfgang Deml, ChairmanRoy V. ArmesLuiz Fernando FurlanMartin H. RichenhagenGerald L. ShaheenMallika Srinivasan21182016 Annual Report AGCO 19

Selected Financial DataYears Ended December 31,(In millions, except per share amounts)Operating Data:Net salesGross profitIncome from operationsNet incomeNet (income) loss attributable to noncontrolling interestsNet income attributable to AGCO Corporation and subsidiariesNet income per common share – dilutedCash dividends declared and paid per common shareWeighted average shares outstanding – diluted20162015 7,410.51,515.5288.4160.2(0.1) 160.1 1.96 0.5281.7 7,467.31,560.6361.1264.02.4 266.4 3.06 0.4887.120162015As of December 31(In millions, except number of employees)Balance Sheet Data:Cash and cash equivalentsTotal assets(1)Total long-term debt, excluding current portionStockholders’ equityOther Data:Number of employees 429.77,168.41,610.02,837.2 5404.26.2 410.4 4.36 0.4494.2 10,786.92,390.6900.7592.34.9 597.2 6.01 0.4099.420142013 19,58819,795363.77,364.5993.33,496.9 1,047.28,390.2932.94,044.820,8282012 9,962.22,123.2693.2516.45.7522.15.30–98.62012 22,111781.37,693.31,028.73,481.520,320(1) Total assets have been retroactively adjusted for December 31, 2015 and all prior year periods related to the adoption of the change in the presentation of debtissuance costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of a deferred charge (an asset). Refer toNote 1 of our Consolidated Financial Statements for further information.(2) The Company makes reference to adjusted earnings per share, as reconciled below:20152016Net income per common share – dilutedRestructuring expenses(3)(4)Tax adjustments(5)(6)Impairment charge(3)(7)Net income per common share – adjusted201420132012 1.960.120.39– 3.060.18–– 4.360.34–– 6.01––– 5.30–(0.27)0.22 2.47 3.24 4.70 6.01 5.25The following is a reconciliation to net cash provided by operating activities The following is a reconciliation of reported net incometo free cash flow for the year ended December 31, 2016 (in millions):to adjusted net income for the year ended December 31,2016 (in millions):20162016Net Income(3)Net cash provided by operating activitiesLess:Capital expenditures Free cash flow (201.0)(3) After tax.(4) The restructuring expenses recorded during 2016, 2015 and 2014 relatedprimarily to severance and other costs associated with the rationalizationof the Company’s operations in the United States, South America, Europeand China.(5) During the second quarter of 2016, the Company recorded a non-cashadjustment to increase the valuation allowance against its U.S. net deferredincome tax assets.(6) During the fourth quarter of 2012, the Company recorded a non-cash tax gainassociated with the recognition of certain U.S. deferred tax assets from thereversal of its U.S. deferred tax valuation allowance and the recognition of certainU.S. research and development tax credits.20 AGCO 2016 Annual Report369.5168.5As reportedRestructuring expenses(3)(4)Deferred income tax adjustment(5) 160.19.931.6As adjusted 201.6(7) During the fourth quarter of 2012, the Company recorded an impairmentcharge of approximately 22.4 million with respect to goodwill and certainother identifiable intangible assets associated with the Company’s Chineseharvesting business.The above notes are more fully described in the Company’s audited ConsolidatedFinancial Statements and Notes to its Consolidated Financial Statements, whichare included in the Company’s Annual Report on Form 10-K.

Consolidated Statements of Operations(In millions, except per share data)Years Ended December 31, Net income attributable to AGCO Corporation and subsidiariesNet income per common share attributable to AGCO Corporation and subsidiaries:Basic DilutedCash dividends declared and paid per common shareWeighted average number of common and common equivalent shares outstanding:BasicDiluted20152016Net salesCost of goods soldGross profitSelling, general and administrative expensesEngineering expensesRestructuring expensesAmortization of intangiblesIncome from operationsInterest expense, netOther expense, netIncome before income taxes and equity in net earnings of affiliatesIncome tax provisionIncome before equity in net earnings of affiliatesEquity in net earnings of affiliatesNet incomeNet (income) loss attributable to noncontrolling interests20147,410.5 4

2016 AnnuAl RepoRt AGCO 07 2016 FinAnCiAl ReCAp our industry and AGCo (the "Company") experienced soft market demand last year. A record grain harvest in the u .S. combined with healthy crop production across e urope and Brazil resulted in increased grain inventories and lower soft commodity prices.