Slide 1: Second Quarter 2011 Earnings Conference Call
Second Quarter 2011 Earnings Conference Call 18 May 2011 Exhibit 99.3 (Furnished herewith) 27
Slide 2: Safe Harbor Statement & Disclosures
| 2nd Quarter 2011 Earnings Conference Call 2 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the company’s projections, plans and objectives for the future, including estimates and assumptions with respect t
Slide 3: Second Quarter Overview
| 2nd Quarter 2011 Earnings Conference Call 3 Second Quarter Overview (in millions of dollars except per share amounts) Q2 2011 Q2 2010 Change Net Sales and Revenues $8,910 $7,131 +25% Net Sales $8,328 $6,548 +27% Net Income Attributable to Deere & Company $904 $547 +65% Diluted EPS $2.12 $1.28 +66%
Slide 4: Supplemental Data – Second Quarter 2010
| 2nd Quarter 2011 Earnings Conference Call 4 Supplemental Data – Second Quarter 2010 NOTE: Due to the magnitude of the amount for the item listed above, management believes the above additional supplemental data provides valuable insight into the operating performance for second quarter 2010. Manag
Slide 5: Second Quarter Overview: Net Sales
| 2nd Quarter 2011 Earnings Conference Call 5 Second Quarter Overview Net Sales Equipment operations net sales: Up 27% in Q2 2011 vs. Q2 2010 Price realization: +4 points Currency translation: +3 points 31
Slide 6: Production Tonnage
| 2nd Quarter 2011 Earnings Conference Call 6 Production Tonnage Approximate % Change* Q2 2011 Actual Q2 2011 Previous Forecast Q3 2011 Forecast FY 2011 Forecast FY 2011 Previous Forecast Total Worldwide +27 +26 +11 +19 +16 Worldwide A&T +24 +23 +12 +17 +14 Worldwide C&F +51 +52 +7 +36 +29 U.S. and
Slide 7: 2011 Company Outlook
| 2nd Quarter 2011 Earnings Conference Call 7 2011 Company Outlook Third Quarter 2011 Forecast Net sales up ~ 20% vs. Q3 2010 Currency translation: ~ +6 points Fiscal Year 2011 Forecast Net sales up 21-23% vs. FY 2010 Currency translation: ~ +3 points Price realization: ~ +3 points Previous forecast
Slide 8: Worldwide Agriculture & Turf Second Quarter Overview
| 2nd Quarter 2011 Earnings Conference Call 8 Worldwide Agriculture & Turf Second Quarter Overview (in millions of dollars) Q2 2011 Q2 2010 Change Net Sales $6,999 $5,637 +24% Operating Profit* $1,163 $952 +22% Production Tonnage +24% Incremental Margin ~ 15% *Q2 2011 operating profit impacted by: H
Slide 9: U.S. Commodity Price Estimates
| 2nd Quarter 2011 Earnings Conference Call 9 U.S. Commodity Price Estimates (dollars per bushel, except cotton, which is dollars per pound) 2009/10 2010/11 Estimate Previous 2010/11 2011/12 Forecast Previous 2011/12 Corn $3.55 $5.20 $5.20 $5.50 $4.90 Wheat $4.87 $5.75 $5.75 $7.25 $6.35 Soybeans $9.
Slide 10: U.S. Farm Cash Receipts
| 2nd Quarter 2011 Earnings Conference Call 10 U.S. Farm Cash Receipts (in billions of dollars) 2009 2010 Forecast Previous 2010 2011 Forecast Previous 2011 2012 Forecast Crops $163.7 $170.9 $171.2 $210.1 $205.1 $202.0 Livestock $119.8 $141.5 $137.5 $149.4 $142.2 $152.0 Government Payments $12.3 $12
Slide 11: U.S. Acres Planted and Crop Yields
(Yield in bushels per acre, except cotton, which is pounds per acre) Acres Planted (millions) Yield 2010/11 Estimate 2011/12 Forecast 2010/11 Estimate 2011/12 Forecast Corn 88.2 91.9 152.8 163.4 Wheat 53.6 58.0 46.4 42.8 Soybeans 77.4 76.6 43.5 43.8 Cotton 11.0 12.6 812 800 | 2nd Quarter 2011 Earnin
Slide 12: EU Economic Update
| 2nd Quarter 2011 Earnings Conference Call 12 EU 27 Economic Update Deere & Company Forecast as of 18 May 2011 Farm income stable to positive due to improved prices Regions and segments differ Fundamentals remain positive Grain, beef, and milk prices remain at good levels Pork prices recovering, fo
Slide 13: Farm Net Income (Loss) Brazil and Argentina
| 2nd Quarter 2011 Earnings Conference Call 13 Farm Net Income (Loss) Brazil and Argentina Brazil (in billions of U.S. dollars) 2009 2010 Previous 2010 2011 Forecast Previous 2011 2012 Forecast Soybeans 2.8 4.5 4.4 8.8 8.8 6.7 Sugarcane 2.3 10.3 10.3 13.4 13.4 13.6 Other* (2.7) 0.6 (1.5) 3.9 1.5 1.9
Slide 14: Agriculture & Turf Retail Sales Industry Outlook – Fiscal 2011
| 2nd Quarter 2011 Earnings Conference Call 14 Agriculture & Turf Retail Sales Industry Outlook – Fiscal 2011 U.S. and Canada Ag: Up 5-10% Previous forecast: Up ~ 5% EU 27 Ag: Up ~ 15% Previous forecast: Up ~ 10% CIS* countries Ag: Notably stronger gains from the previous year’s depressed level Prev
Slide 15: Worldwide Agriculture & Turf Outlook
| 2nd Quarter 2011 Earnings Conference Call 15 Worldwide Agriculture & Turf Deere & Company Outlook Fiscal Year 2011 Forecast Net sales projected to be up ~ 20% Currency translation: ~ +4 points Previous forecast: Up ~ 16% Deere & Company Forecast as of 18 May 2011 (Previous Forecast as of 16 Februa
Slide 16: Product Expansion - Large Square Baler
Product Expansion - Large Square Baler | 2nd Quarter 2011 Earnings Conference Call 16 John Deere and Kuhn Group announce strategic cooperation Provides John Deere branded machines to EAME and CIS countries in 2012, worldwide by 2014 Adds key product offering for livestock, commercial, and contractor
Slide 17: New Operations - China
| 2nd Quarter 2011 Earnings Conference Call 17 Construction of an agricultural equipment factory Located in Harbin, Heilongjiang Province Initial outlay of ~ $80 million Expect production to begin late 2012 Support demand for large agricultural machinery Mid- and large-sized tractors, sprayers, plan
Slide 18: Worldwide Construction & Forestry Second Quarter Overview
| 2nd Quarter 2011 Earnings Conference Call 18 Worldwide Construction & Forestry Second Quarter Overview (in millions of dollars) Q2 2011 Q2 2010 Change Net Sales $1,329 $911 +46% Operating Profit* $105 $36 +192% Production Tonnage +51% Incremental Margin ~ 17% *Q2 2011 operating profit impacted by:
Slide 19: Worldwide Construction & Forestry Outlook
U.S. Economic Indicators 2011 Forecast 2012 Forecast GDP Growth (annual percentage rate) +2.8% +2.9% Housing Starts (thousands) 616 1,036 Non-Residential Spending Growth (annual percentage rate) -2.7% -3.0% Government Spending Growth (annual percentage rate) -3.2% -1.8% | 2nd Quarter 2011 Earnings C
Slide 20: Worldwide Financial Services Credit Loss History
| 2nd Quarter 2011 Earnings Conference Call 20 Worldwide Financial Services Credit Loss History 0.10% Provision for Credit Losses / Average Owned Portfolio * Annualized provision for credit losses as of 30 April 2011 46 0.00% 0.50% 1.00% 1.50% 2.00% 1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1
Slide 21: Worldwide Financial Services Second Quarter 2011
| 2nd Quarter 2011 Earnings Conference Call 21 Worldwide Financial Services Second Quarter 2011 Net income attributable to Deere & Company $105 million in Q2 2011 vs. $87 million in Q2 2010 Fiscal Year 2011 Forecast Net income attributable to Deere & Company of ~ $435 million Previous forecast: ~ $4
Slide 22: Consolidated Trade Receivables & Inventory
| 2nd Quarter 2011 Earnings Conference Call 22 Consolidated Trade Receivables & Inventory (in millions of dollars) Q2 2011* Actual 2011** Forecast 2011** Previous Forecast A&T 1,331 125 350 C&F 496 225 100 Total, as reported 1,827 100 250 Total, constant exchange 1,392 50 225 * Change at 30 April 20
Slide 23: Retail Sales and Dealer Inventories
| 2nd Quarter 2011 Earnings Conference Call 23 Retail Sales U.S. and Canada Ag Industry* Deere** Utility Tractors 5% in line with the industry Row-Crop Tractors 1% a low single digit 4WD Tractors 4% a single digit Combines 19% more than industry April 2011 Retail Sales and Dealer Inventories * As re
Slide 24: April 2011 Retail Sales
| 2nd Quarter 2011 Earnings Conference Call 24 April 2011 Retail Sales EU 27 Deere* Tractors double digits Combines double digits U.S. and Canada Deere* Selected Turf & Utility Equipment double digits * Based on internal sales reports U.S. and Canada – Construction & Forestry Deere* First-in-the-Dir
Slide 25: Material Costs and Freight
| 2nd Quarter 2011 Earnings Conference Call 25 Material Costs and Freight Equipment Operations Second Quarter 2011 Up ~ $175 million vs. Q2 2010 Fiscal Year 2011 Forecast Margin impact: ~ (2) points vs. FY 2010 Previous forecast: (1-2) points Deere & Company Forecast as of 18 May 2011 (Previous Fore
Slide 26: Selling, Administrative & General Expense
| 2nd Quarter 2011 Earnings Conference Call 27 Selling, Administrative & General Expense Equipment Operations Second Quarter 2011 Up ~ 19% vs. Q2 2010 Incentive compensation: ~ +8 points Currency translation: ~ +2 points Growth: ~ +1 point Fiscal Year 2011 Forecast Up ~ 14% vs. FY 2010 Incentive com
Slide 27: Income Taxes
| 2nd Quarter 2011 Earnings Conference Call 28 Income Taxes Equipment Operations Second Quarter 2011 Effective tax rate of ~ 32% Fiscal Year 2011 Forecast Projected effective tax rate of 33-35% No change from previous forecast Deere & Company Forecast as of 18 May 2011 (Previous Forecast as of 16 Fe
Slide 28: Continued Strong Operating Performance
| 2nd Quarter 2011 Earnings Conference Call 29 Continued Strong Operating Performance Equipment Operations Cash Flows from Operations Fiscal Year 2008: $2.4 billion Fiscal Year 2009: $1.4 billion Fiscal Year 2010: $2.5 billion Fiscal Year 2011 Forecast: ~ $3.1 billion Previous forecast: ~ $3.3 billi
Slide 29: Other Information
| 2nd Quarter 2011 Earnings Conference Call 30 Other Information Fiscal Year 2011 Forecast Equipment Operations Capital Expenditures ~ $1.1 billion No change from previous forecast Depreciation and Amortization ~ $600 million No change from previous forecast Pension/OPEB Contributions ~ $115 million
Slide 30: Share Repurchase
| 2nd Quarter 2011 Earnings Conference Call 31 Share Repurchase As Part of Publicly Announced Plans Actual Shares Repurchased* (in millions) Total Amount** (in billions) 2004 5.9 $0.2 2005 27.7 $0.9 2006 34.0 $1.3 2007 25.7 $1.5 2008 21.2 $1.7 2009 0.0 $0.0 2010 5.2 $0.4 2011 YTD 6.8 $0.6 Cumulative
Slide 31: Appendix
| 2nd Quarter 2011 Earnings Conference Call 32 Appendix 58
Slide 32: Deere Use-of-Cash Priorities
Deere Use-of-Cash Priorities | 2nd Quarter 2011 Earnings Conference Call 33 Manage the balance sheet, including liquidity, to support a rating that provides access to low-cost and readily available short- and long-term funding mechanisms Reflects the strategic nature of our financial services operat
Slide 33: Worldwide Financial Services Unsecured Term Debt Maturities
| 2nd Quarter 2011 Earnings Conference Call 34 Worldwide Financial Services Unsecured Term Debt Maturities* * Maturities as of 30 April 2011 60
Slide 34: Sources and Uses of Cash
| 2nd Quarter 2011 Earnings Conference Call 35 Sources and Uses of Cash Fiscal 2004–2010 Equipment Operations ~55% of cash from operations returned to shareholders (1) Other includes excess tax benefits from share-based compensation, effect of exchange rates on cash and cash equivalents, proceeds fr
Slide 35: U.S. Farm Prices
U.S. Farm Prices | 2nd Quarter 2011 Earnings Conference Call 36 Source: Actual Data: USDA Forecast Data: Deere & Company Forecast as of 18 May 2011 62
Slide 36: World Farm Fundamentals
| 2nd Quarter 2011 Earnings Conference Call 37 World Farm Fundamentals Global Stocks-To-Use Ratios Corn Wheat Soybeans Source: USDA - 11 May 2011 Cotton 63
Slide 37: U.S. Net Farm Cash Income
| 2nd Quarter 2011 Earnings Conference Call 38 U.S. Net Farm Cash Income (in billions of dollars) 2009 2010 Forecast Previous 2010 2011 Forecast Previous 2011 2012 Forecast Total Cash Receipts $295.8 $324.6 $321.1 $371.4 $359.2 $366.3 Other Cash Income $22.0 $21.0 $22.8 $21.1 $23.3 $23.8 Gross Cash
Slide 38: Third quarter 2011 conference call scheduled
Deere’s third quarter 2011 conference call is scheduled for 9:00 a.m. central time on Wednesday, August 17, 2011 65