Deere & Company · NYSE:DE
Deere & — Q2 2022 Earnings Presentation
21 slides from Deere &'s earnings presentation, May 20, 2022
Slide 1: 2Q 2022 Earnings Call
2Q 2022 Earnings Call 20 May 2022
Slide 2: Safe Harbor Statement and Disclosures
Safe Harbor Statement and Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market ac
Slide 3: 2Q 2022 Results
2Q 2022 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $13,370 $12,034 $2,098 $12,058 $10,998 $6.81 $1,790 $5.68 2Q 2021 2Q 2022 2Q 2021 2Q 2022 2Q 2021 2Q 2022 2Q 2021 2Q 2022 11%
Slide 4: Production and Precision Ag
Production and Precision Ag 2Q 2022 Results $ in millions Net Sales 13% Operating Profit Comparison $62 $24 ($627) $502 $5,117 $4,529 $212 ($58) ($46) ($19) $1,007 $1,057 2Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 2Q 2022 2Q 2021 2Q 2022 Mix Costs R&D Items 4 John Deere |
Slide 5: Small Ag and Turf
Small Ag and Turf 2Q 2022 Results $ in millions Net Sales 5% Operating Profit Comparison $277 ($5) $8 ($330) $3,570 $3,390 ($42) ($35) $648 ($1) $520 2Q 2021 Volume/ Mix Price Currency Warranty Production SA&G/ Special 2Q 2022 2Q 2021 2Q 2022 Costs R&D Items 5 John Deere | 2Q 2022 Earnings Call | Ma
Slide 6: Ag and Turf Industry Outlook – FY 2022
Ag and Turf Industry Outlook – FY 2022 U.S. and CANADA U.S. and CANADA EUROPE AG LARGE AG SMALL AG and TURF ~20% Flat ~5% SOUTH AMERICA AG ASIA AG (tractors and combines) ~10% Down moderately Source: Deere & Company forecast as of 20 May 2022 6 John Deere | 2Q 2022 Earnings Call | May 20, 2022
Slide 7: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook Net Sales Operating Margin 25-30% 21-22% 20.2% $16,509 FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 20 May 2022 7 John Deere | 2Q 2022 Earnings Call | May 20, 2022
Slide 8: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook Net Sales Operating Margin ~15% 15.5-16.5% 17.2% $11,860 FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 20 May 2022 8 John Deere | 2Q 2022 Earnings Call | May 20, 2022
Slide 9: Construction and Forestry
Construction and Forestry 2Q 2022 Results $ in millions Net Sales 9% Operating Profit Comparison $279 ($27) $19 ($237) $303 $9 $814 $3,347 $3,079 ($15) ($6) $489 2Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 2Q 2022 2Q 2021 2Q 2022 Mix Costs R&D Items 9 John Deere | 2Q 2022
Slide 10: Construction and Forestry Industry Outlook – FY 2022
Construction and Forestry Industry Outlook – FY 2022 NORTH AMERICA NORTH AMERICA COMPACT CONSTRUCTION EQUIPMENT CONSTRUCTION EQUIPMENT ~10% Flat to up 5% GLOBAL FORESTRY GLOBAL ROADBUILDING Flat to up 5% Flat to up 5% Source: Deere & Company forecast as of 20 May 2022 10 John Deere | 2Q 2022 Earning
Slide 11: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook Net Sales Operating Margin 10-15% 15.5-16.5% $11,368 13.1% FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 20 May 2022 11 John Deere | 2Q 2022 Earnings Call | May 20, 2022
Slide 12: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook Quarter Results Fiscal Year Outlook $222 $208 $881 $870 2Q 2021 2Q 2022 FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 20 May 2022 12 John Deere | 2Q 2022 Earnings Call | May 20, 2022
Slide 13: Deere & Company Outlook
Deere & Company Outlook FY 2022 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* $7.0-7.4B 22-24% $5.6-6.0B *Equipment Operations Source: Deere & Company forecast as of 20 May 2022 13 John Deere | 2Q 2022 Earnings Call | May 20, 2022
Slide 14: Appendix
Appendix 14 John Deere | 2Q 2022 Earnings Call | May 20, 2022
Slide 15: Other Financial Information
Other Financial Information Equipment Operations FY 2022 ($ millions) 2Q 2022 Forecast Cost of Sales (percent of Net Sales) 74% ~73% Selling, Administrative and General Expenses 3% ~9% Research and Development Expenses 20% ~17% Capital Expenditures ~ $1,175 Pension/OPEB Expenses ~ $35 Pension/OPEB C
Slide 16: April 2022 Retail Sales and Dealer Inventories
April 2022 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 19% In line with the industry 2WD Tractors (40 < 100 PTO hp) 11% Flat 2WD Tractors (100+ PTO hp) 8% In line with the industry 4WD Tractors 23% More than the
Slide 17: April 2022 Retail Sales (Rolling 3 Months)
April 2022 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Single digit Combines Single digit Retail Sales U.S. and Canada Deere* Selected Turf and Utility Equipment Low double digits Construction and Forestry First-in-the-Dirt Double digits Settlements Double digits * Based o
Slide 18: Deere Use-of-Cash Priorities
Deere Use-of-Cash Priorities CASH FROM OPERATIONS Manage the balance sheet, including liquidity, to support a rating that provides COMMITTED access to low-cost and readily available short- and long-term funding TO “A” RATING mechanisms (reflects the strategic nature of our financial services operati
Slide 19: Analyst Day May 2022
Analyst Day 26 May 2022 8:00 a.m. Central Time Join us virtually at www.investor.deere.com 19 John Deere | 2Q 2022 Earnings Call | May 20, 2022
Slide 20: Deere & Company's 3Q 2022 earnings call
Deere & Company’s 3Q 2022 earnings call is scheduled for 9:00 a.m. Central Time on Friday, 19 August 2022. 20 John Deere | 2Q 2022 Earnings Call | May 20, 2022
Slide 21: John Deere
@ JOHN DEERE