Deere & Company · NYSE:DE
Deere & — Q3 2022 Earnings Presentation
20 slides from Deere &'s earnings presentation, Aug 19, 2022
Slide 1: 3Q 2022 Earnings Call
3Q 2022 Earnings Call 19 August 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: 3Q 2022 Results
3Q 2022 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $14,102 $13,000 $1,884 $1,667 $6.16 $11,527 $10,413 $5.32 3Q 2021 3Q 2022 3Q 2021 3Q 2022 3Q 2021 3Q 2022 3Q 2021 3Q 2022 22%
Slide 4: Production and Precision Ag
Production and Precision Ag 3Q 2022 Results $ in millions Net Sales 43% Operating Profit Comparison $646 ($47) ($2) ($535) $6,096 ($140) $492 $1 ($28) $4,250 $1,293 $906 3Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 3Q 2022 3Q 2021 3Q 2022 Mix Costs R&D Items 4 John Deere |
Slide 5: Small Ag and Turf
Small Ag and Turf 3Q 2022 Results $ in millions Net Sales 16% Operating Profit Comparison $314 ($38) $5 ($304) $3,635 $3,147 $69 ($42) ($27) ($8) $583 $552 3Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 3Q 2022 3Q 2021 3Q 2022 Mix Costs R&D Items 5 John Deere | 3Q 2022 Earnin
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 ~15% Flat Flat SOUTH AMERICA AG ASIA AG (tractors and combines) 10-15% Down moderately Source: Deere & Company forecast in units as of 19 August 2022 6 John Deere | 3Q 2022 Earnings Call | Aug
Slide 7: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook Net Sales Operating Margin 25-30% 20-21% 20.2% $16,509 FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 19 August 2022 7 John Deere | 3Q 2022 Earnings Call | August 19, 2022
Slide 8: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook Net Sales Operating Margin 10-15% 14-15% 17.2% $11,860 FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 19 August 2022 8 John Deere | 3Q 2022 Earnings Call | August 19, 2022
Slide 9: Construction and Forestry
Construction and Forestry 3Q 2022 Results $ in millions Net Sales 8% Operating Profit Comparison $302 $19 ($2) ($262) $3,269 $3,016 ($10) ($1) $10 ($5) $514 $463 3Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 3Q 2022 3Q 2021 3Q 2022 Mix Costs R&D Items 9 John Deere | 3Q 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 down 5% GLOBAL FORESTRY GLOBAL ROADBUILDING Flat to down 5% Flat to up 5% Source: Deere & Company forecast in units as of 19 August 2022 10 John Deere |
Slide 11: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook Net Sales Operating Margin ~10% 15.5-16.5% $11,368 13.1% FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 19 August 2022 11 John Deere | 3Q 2022 Earnings Call | August 19, 2022
Slide 12: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook Quarter Results Fiscal Year Outlook $227 $209 $881 $870 3Q 2021 3Q 2022 FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 19 August 2022 12 John Deere | 3Q 2022 Earnings Call | August 19, 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* $7.0-7.2B 21-23% $5.3-5.5B *Equipment Operations Source: Deere & Company forecast as of 19 August 2022 13 John Deere | 3Q 2022 Earnings Call | August 19, 2022
Slide 14: Appendix
Appendix 14 John Deere | 3Q 2022 Earnings Call | August 19, 2022
Slide 15: Other Financial Information
Other Financial Information Equipment Operations FY 2022 ($ millions) 3Q 2022 Forecast Cost of Sales (percent of Net Sales) 73% ~74% Selling, Administrative and General Expenses 15% ~10% Research and Development Expenses 22% ~21% Capital Expenditures ~ $1,100 Pension/OPEB Expenses ~ $20 Pension/OPEB
Slide 16: July 2022 Retail Sales and Dealer Inventories
July 2022 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 17% In line with the industry 2WD Tractors (40 < 100 PTO hp) 13% Single digit 2WD Tractors (100+ PTO hp) 12% More than the industry 4WD Tractors 2% In line wi
Slide 17: July 2022 Retail Sales (Rolling 3 Months)
July 2022 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Low single digit Combines Double digits Retail Sales U.S. and Canada Deere* Selected Turf and Utility Equipment Single digit Construction and Forestry First-in-the-Dirt Single digit Settlements Single digit * Based on i
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 4Q 2022 earnings call
Deere & Company’s 4Q 2022 earnings call is scheduled for 9:00 a.m. Central Time on Wednesday, 23 November 2022. 19 John Deere | 3Q 2022 Earnings Call | August 19, 2022
Slide 20: John Deere
@ JOHN DEERE