Deere & Company · NYSE:DE
Deere & — Q1 2023 Earnings Presentation
21 slides from Deere &'s earnings presentation, Feb 17, 2023
Slide 1: 1Q 2023 Earnings Call
1Q 2023 Earnings Call 17 February 2023
Slide 2: Safe Harbor Statement and Disclosures
Safe Harbor Statement and Disclosures The earnings call and accompanying material include “forward-looking statements” within the meaning of the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995 and concern the company’s plans and projections for the future, includi
Slide 3: 1Q 2023 Results
1Q 2023 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $12,652 $11,402 $1,959 $6.55 $9,569 $8,531 $903 $2.92 1Q 2022 1Q 2023 1Q 2022 1Q 2023 1Q 2022 1Q 2023 1Q 2022 1Q 2023 32% 34%
Slide 4: Production and Precision Ag
Production and Precision Ag 1Q 2023 Results $ in millions Net Sales 55% Operating Profit Comparison $741 ($46) ($15) ($256) $5,198 ($127) $53 ($51) $1,208 $3,356 $613 $296 1Q 2022 Volume/ Price Currency Warranty Production SA&G/ Special Other 1Q 2023 1Q 2022 1Q 2023 Mix Costs R&D Items 4 John Deere
Slide 5: Small Ag and Turf
Small Ag and Turf 1Q 2023 Results $ in millions Net Sales 14% Operating Profit Comparison $300 ($18) ($1) ($185) $3,001 $2,631 ($49) $9 ($44) $64 $447 $371 1Q 2022 1Q 2023 1Q 2022 Volume/ Price Currency Warranty Production SA&G/ Special Other 1Q 2023 Mix Costs R&D Items 5 John Deere | 1Q 2023 Earnin
Slide 6: Ag and Turf Industry Outlook (in units) – FY 2023
Ag and Turf Industry Outlook (in units) – FY 2023 U.S. and CANADA U.S. and CANADA EUROPE AG LARGE AG SMALL AG and TURF 5-10% Down ~5% Flat to up 5% SOUTH AMERICA AG ASIA AG (tractors and combines) Flat to up 5% Down moderately Source: Deere & Company forecast as of 17 February 2023 6 John Deere | 1Q
Slide 7: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook Net Sales Operating Margin ~20% 23.5-24.5% $22,002 19.9% FY 2022 FY 2023 Fcst FY 2022 FY 2023 Fcst Source: Deere & Company forecast as of 17 February 2023 7 John Deere | 1Q 2023 Earnings Call | February 17, 2023
Slide 8: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook Net Sales Operating Margin Flat to up 5% 14.5-15.5% $13,381 14.6% FY 2022 FY 2023 Fcst FY 2022 Fcst FY 2023 Fcst Source: Deere & Company forecast as of 17 February 2023 8 John Deere | 1Q 2023 Earnings Call | February 17, 2023
Slide 9: Construction and Forestry
Construction and Forestry 1Q 2023 Results $ in millions Net Sales 26% Operating Profit Comparison $27 ($2) ($187) $3,203 $343 $20 $2,544 ($24) $28 $625 $148 $272 1Q 2022 Volume/ Price Currency Warranty Production SA&G/ Special Other 1Q 2023 1Q 2022 1Q 2023 Mix Costs R&D Items 9 John Deere | 1Q 2023
Slide 10: Construction and Forestry Industry Outlook (in units) – FY 2023
Construction and Forestry Industry Outlook (in units) – FY 2023 NORTH AMERICA NORTH AMERICA COMPACT CONSTRUCTION EQUIPMENT CONSTRUCTION EQUIPMENT Flat to up 5% Flat to up 5% GLOBAL FORESTRY GLOBAL ROADBUILDING Flat Flat Source: Deere & Company forecast as of 17 February 2023 10 John Deere | 1Q 2023
Slide 11: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook Net Sales Operating Margin 10-15% 17-18% $12,534 16.1% FY 2022 FY 2023 Fcst FY 2022 FY 2023 Fcst Source: Deere & Company forecast as of 17 February 2023 11 John Deere | 1Q 2023 Earnings Call | February 17, 2023
Slide 12: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook Quarter Results Fiscal Year Outlook $231 $880 ~ $820 $185 1Q 2022 1Q 2023 FY 2022 FY 2023 Fcst Source: Deere & Company forecast as of 17 February 2023 12 John Deere | 1Q 2023 Earnings Call | February 17, 2023
Slide 13: Deere & Company Outlook
Deere & Company Outlook FY 2023 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* $8.75-9.25B 23-25% $9.25-9.75B *Equipment Operations Source: Deere & Company forecast as of 17 February 2023 13 John Deere | 1Q 2023 Earnings Call | February 17, 2023
Slide 14: Appendix
Appendix 14 John Deere | 1Q 2023 Earnings Call | February 17, 2023
Slide 15: Other Financial Information
Other Financial Information Equipment Operations FY 2023 ($ millions) 1Q 2023 Forecast Cost of Sales (percent of Net Sales) 70% ~69% Selling, Administrative and General Expenses 19% ~16% Research and Development Expenses 23% ~14% Capital Expenditures ~ $1,400 Pension/OPEB Expenses ~ $220 Pension/OPE
Slide 16: January 2023 Retail Sales and Dealer Inventories
January 2023 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 25% More than the industry 2WD Tractors (40 < 100 PTO hp) 9% In line with the industry 2WD Tractors (100+ PTO hp) 4% More than the industry 4WD Tractors 26
Slide 17: January 2023 Retail Sales (Rolling 3 Months)
January 2023 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Single digit Combines Double digits Retail Sales U.S. and Canada Deere* Selected Turf and Utility Equipment High single digit Construction and Forestry First-in-the-Dirt Double digits Settlements Double digits * Base
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: We're running for a world where people and planet prosper
Sustainability We’re running for a world where people and planet prosper. View the 2022 Sustainability Report at: https://www.deere.com/en/our-company/sustainability/ 19 John Deere | 1Q 2023 Earnings Call | February 17, 2023
Slide 20: Deere & Company's 2Q 2023 earnings call
Deere & Company’s 2Q 2023 earnings call is scheduled for 9:00 a.m. Central Time on Friday, 19 May 2023. 20 John Deere | 1Q 2023 Earnings Call | February 17, 2023
Slide 21: John Deere
@ JOHN DEERE