Deere & Company · NYSE:DE
Deere & — Q4 2023 Earnings Presentation
20 slides from Deere &'s earnings presentation, Nov 22, 2023
Slide 1: 4Q 2023 Earnings Call
4Q 2023 Earnings Call 22 November 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This earnings call and accompanying materials may include forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “forecast,” “gu
Slide 3: FY 2023 Results
FY 2023 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $61,251 $10,166 $34.63 $52,577 $55,565 $47,917 $7,131 $23.28 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023
Slide 4: 4Q 2023 Results
4Q 2023 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $15,536 $15,412 $2,369 $8.26 $14,351 $13,801 $2,246 $7.44 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 1%
Slide 5: Production and Precision Ag
Production and Precision Ag 4Q 2023 Results $ in millions Net Sales 6% Operating Profit Comparison $40 ($58) $70 ($67) $7,434 $729 ($14) $18 $6,965 ($622) $1,836 $1,740 4Q 2022 4Q 2023 4Q 2022 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2023 Mix Costs R&D Items 5 John Deere | 4
Slide 6: Small Ag and Turf
Small Ag and Turf 4Q 2023 Results $ in millions Net Sales 13% Operating Profit Comparison $3,544 ($189) $168 $1 ($31) $35 ($49) $3,094 $506 $8 ($5) $444 4Q 2022 4Q 2023 4Q 2022 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2023 Mix Costs R&D Items 6 John Deere | 4Q 2023 Earnings
Slide 7: Ag and Turf Industry Outlook (in units) – FY 2024
Ag and Turf Industry Outlook (in units) – FY 2024 U.S. and CANADA U.S. and CANADA EUROPE AG LARGE AG SMALL AG and TURF 10-15% 5-10% ~10% SOUTH AMERICA AG ASIA AG (tractors and combines) ~10% Down moderately Source: Deere & Company forecast as of 22 November 2023 7 John Deere | 4Q 2023 Earnings Call
Slide 8: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook $ in millions Net Sales Operating Margin 23-24% 15-20% $26,790 26.1% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 22 November 2023 8 John Deere | 4Q 2023 Earnings Call | November 22, 2023
Slide 9: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook $ in millions Net Sales Operating Margin 10-15% 15-16% $13,980 17.7% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 22 November 2023 9 John Deere | 4Q 2023 Earnings Call | November 22, 2023
Slide 10: Construction and Forestry
Construction and Forestry 4Q 2023 Results $ in millions Net Sales 11% Operating Profit Comparison $214 ($28) $3,742 $1 ($84) $3,373 $32 ($25) $0 ($8) $516 $414 4Q 2022 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2023 4Q 2022 4Q 2023 Mix Costs R&D Items 10 John Deere | 4Q 2023 E
Slide 11: Construction and Forestry Industry Outlook (in units) – FY 2024
Construction and Forestry Industry Outlook (in units) – FY 2024 U.S. and CANADA U.S. and CANADA COMPACT CONSTRUCTION EQUIPMENT CONSTRUCTION EQUIPMENT 5-10% Flat to down 5% GLOBAL FORESTRY GLOBAL ROADBUILDING ~10% Flat Source: Deere & Company forecast as of 22 November 2023 11 John Deere | 4Q 2023 Ea
Slide 12: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook $ in millions Net Sales Operating Margin 17-18% ~10% $14,795 18.2% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 22 November 2023 12 John Deere | 4Q 2023 Earnings Call | November 22, 2023
Slide 13: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook $ in millions Quarter Results Fiscal Year Outlook $232 ~ $770 $190 $619 4Q 2022 4Q 2023 FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 22 November 2023 13 John Deere | 4Q 2023 Earnings Call | November 22, 2023
Slide 14: Deere & Company Outlook
Deere & Company Outlook FY 2024 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* $7.75-8.25B 24-26% $8.0-8.5B Research and Development Expenses* Flat to slightly up Capital Expenditures* ~$1.9B *Equipment Operations Source: Deere & Company forecast as of
Slide 15: Appendix
Appendix 15 John Deere | 4Q 2023 Earnings Call | November 22, 2023
Slide 16: October 2023 Retail Sales and Dealer Inventories
October 2023 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 7% More than the industry 2WD Tractors (40 < 100 PTO hp) 6% More than the industry 2WD Tractors (100+ PTO hp) 3% In line with the industry 4WD Tractors 42%
Slide 17: October 2023 Retail Sales (Rolling 3 Months)
October 2023 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 Up double digits Construction and Forestry First-in-the-Dirt High single digit Settlements Single digit * Bas
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: Deere & Company's 1Q 2024 earnings call
Deere & Company’s 1Q 2024 earnings call is scheduled for 9:00 a.m. Central Time on Thursday, 15 February 2024. 19 John Deere | 4Q 2023 Earnings Call | November 22, 2023
Slide 20: John Deere
@ JOHN DEERE