Slide 1: Third Quarter 2010 Earnings Conference Call
Third Quarter 2010 Earnings Conference Call 18 August 2010 Exhibit 99.3 (Furnished herewith) 24
Slide 2: Safe Harbor Statement & Disclosures
| 3rd Quarter 2010 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: Third Quarter Overview
| 3rd Quarter 2010 Earnings Conference Call 3 Third Quarter Overview (in millions of dollars except per share amounts) Q3 2010 Q3 2009 Change Net Sales and Revenues $6,837 $5,885 +16% Net Sales $6,224 $5,283 +18% Net Income Attributable to Deere & Company $617 $420 +47% Diluted EPS $1.44 $.99 +45% 2
Slide 4: Third Quarter Overview: Net Sales
| 3rd Quarter 2010 Earnings Conference Call 4 Third Quarter Overview Net Sales Equipment operations net sales: Up 18% in Q3 2010 vs. Q3 2009 Currency translation: flat Price realization: +2 points 27
Slide 5: Production Tonnage
| 3rd Quarter 2010 Earnings Conference Call 5 Production Tonnage* % Change Q3 2010 Actual Q3 2010 Previous Forecast Q4 2010 Forecast FY 2010 Forecast FY 2010 Previous Forecast Total Worldwide +31 +31 +53 +14 +11 Worldwide A&T +24 +25 +47 +10 +8 Worldwide C&F +96 +92 +94 +55 +45 U.S. and Canada +23 +
Slide 6: Company Outlook
Deere & Company Forecast as of 18 August 2010 (Previous Forecast as of 19 May 2010) | 3rd Quarter 2010 Earnings Conference Call 6 2010 Company Outlook Fourth Quarter 2010 Forecast Net sales up ~ 32% vs. Q4 2009 Currency translation: ~ (1) point Net income attributable to Deere & Company ~ $375 milli
Slide 7: U.S. Commodity Price Estimates
| 3rd Quarter 2010 Earnings Conference Call 8 U.S. Commodity Price Estimates 2008/09 2009/10 Forecast Previous 2009/10 2010/11 Forecast Previous 2010/11 Corn (dollars per bushel) $4.06 $3.55 $3.50 $3.90 $3.60 Wheat (dollars per bushel) $6.78 $4.87 $4.90 $5.25 $4.75 Soybeans (dollars per bushel) $9.9
Slide 8: U.S. Farm Cash Receipts
| 3rd Quarter 2010 Earnings Conference Call 9 U.S. Farm Cash Receipts (in billions of dollars) 2009 Previous 2009 2010 Forecast Previous 2010 2011 Forecast Previous 2011 Crops 166.3 166.3 171.4 167.5 179.0 171.3 Livestock 118.8 118.8 133.3 133.0 133.0 134.6 Government Payments 12.9 12.9 12.4 12.4 11
Slide 9: European (EU-27) Economic Update
| 3rd Quarter 2010 Earnings Conference Call 10 European (EU-27) Economic Update Deere & Company Forecast as of 18 August 2010 General Economy Debt crises in Portugal, Italy, Ireland, Greece, and Spain have been addressed Euro has recovered from recent lows Farm Economy Crop prices have risen, allowi
Slide 10: Russia and Eastern Europe
| 3rd Quarter 2010 Earnings Conference Call 11 Russia and Eastern Europe Severe drought coupled with hot weather and fires Fires and Smoke in Russia, acquired August 4, 2010 Source: NASA Earth Observatory, http://earthobservatory.nasa.gov Heatwave in Russia, acquired July 20 - 27, 2010 Source: NASA
Slide 11: Farm Net Income (Loss) Brazil and Argentina
| 3rd Quarter 2010 Earnings Conference Call 12 Farm Net Income (Loss) Brazil and Argentina Brazil (in billions of U.S. dollars) 2009 2010 Forecast Previous 2010 2011 Forecast Soybeans 2.7 1.9 1.8 2.3 Sugarcane 2.3 6.4 6.6 7.9 Other* (2.6) (3.0) (2.8) (1.1) Total 2.4 5.3 5.6 9.1 Argentina (in billion
Slide 12: John Deere India – New Product Introduction
John Deere India – New Product Introduction 35 and 41 HP tractors introduced June 2010 | 3rd Quarter 2010 Earnings Conference Call 13 India Industry Tractor Sales R12 June’10 (~ 422,000 units) 5036C and 5041C tractor models Designed and developed in India specifically for the India market Cost effec
Slide 13: Agriculture & Turf Retail Sales Industry Outlook – Fiscal 2010
| 3rd Quarter 2010 Earnings Conference Call 14 Agriculture & Turf Retail Sales Industry Outlook – Fiscal 2010 U.S. and Canada Ag: Up 5-10% No change from previous forecast Western Europe Ag: Down 15-20% Previous forecast: Down 10-15% Central Europe and the CIS* countries Ag: Expected to remain under
Slide 14: Worldwide Agriculture & Turf Outlook
| 3rd Quarter 2010 Earnings Conference Call 15 Worldwide Agriculture & Turf Deere & Company Outlook Fiscal Year 2010 Forecast Net sales projected to be up ~ 8% Currency translation: ~ +2 points Previous forecast up 9-11% Currency translation: ~ +3 points Deere & Company Forecast as of 18 August 2010
Slide 15: Worldwide Construction & Forestry Third Quarter Overview
| 3rd Quarter 2010 Earnings Conference Call 16 Worldwide Construction & Forestry Third Quarter Overview (in millions of dollars) Q3 2010 Q3 2009 Change Net Sales $1,007 $632 +59% Operating Profit*/(Loss) $66 ($28) N/A Production Tonnage +96% Incremental Margin ~ 25% *Operating profit impacted by: Hi
Slide 16: Worldwide Construction & Forestry Outlook
U.S. Economic Indicators 2010 Forecast 2011 Forecast GDP Growth (annual percentage rate) +3.1% +2.7% Housing Starts (thousands) 638 962 Non-Residential Spending Growth (annual percentage rate) -11.7% -7.7% Government Spending Growth (annual percentage rate) -2.4% +3.9% | 3rd Quarter 2010 Earnings Co
Slide 17: Worldwide Credit Operations Credit Loss History
| 3rd Quarter 2010 Earnings Conference Call 18 Worldwide Credit Operations Credit Loss History Provision for Credit Losses / Average Owned Portfolio * Year-to-date July results annualized .49% 41 0.00% 0.50% 1.00% 1.50% 2.00% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Slide 18: Credit Operations Owned Portfolio Past-Dues and Write-offs
| 3rd Quarter 2010 Earnings Conference Call 19 Past-Dues Annualized Write-offs July 2010 July 2009 Q3 2010 Q3 2009 A&T – Retail Notes 0.13% 0.18% 0.20% 0.05% C&F – Retail Notes 0.37% 0.66% 0.03% 2.27% Revolving Charge Accounts 0.97% 1.25% 2.80% 3.04% Financing Leases 0.71% 0.71% 0.18% 1.31% Total Ow
Slide 19: Worldwide Credit Operations
| 3rd Quarter 2010 Earnings Conference Call 20 Worldwide Credit Operations Third Quarter 2010 Net income attributable to Deere & Company $95 million in Q3 2010 vs. $99 million in Q3 2009 Fiscal Year 2010 Forecast Net income attributable to Deere & Company of ~ $325 million Previous forecast ~ $300 m
Slide 20: Consolidated Trade Receivables & Inventory
| 3rd Quarter 2010 Earnings Conference Call 21 Consolidated Trade Receivables & Inventory (in millions of dollars) Q3 2010* Actual 2010** Forecast 2010** Previous Forecast A&T 234 675 500 C&F 219 275 200 Total, as reported 453 950 700 Total, constant exchange 444 1,150 775 * Change at 31 July 2010 v
Slide 21: July 2010 Retail Sales and Dealer Inventories
| 3rd Quarter 2010 Earnings Conference Call 22 Retail Sales U.S. and Canada Ag Industry* Deere** Utility Tractors 3% double digits Row-Crop Tractors 10% in-line with industry 4WD Tractors 2% double digits Combines 7% slightly less than industry July 2010 Retail Sales and Dealer Inventories * As repo
Slide 22: July 2010 Retail Sales
| 3rd Quarter 2010 Earnings Conference Call 23 July 2010 Retail Sales Western Europe Deere* Tractors double digits Combines double digits U.S. and Canada Deere Selected Turf & Utility Equipment a single digit * Based on EU Government Reporting of Registrations U.S. and Canada – Construction & Forest
Slide 23: Material Costs and Freight
| 3rd Quarter 2010 Earnings Conference Call 24 Material Costs and Freight Equipment Operations Third Quarter 2010 Up ~ $10 million vs. Q3 2009 Fiscal Year 2010 Forecast Down ~ $150 million vs. FY 2009 By division Agriculture & Turf ~ $175 million Construction & Forestry ~ $25 million Previous foreca
Slide 24: Research & Development Expense
| 3rd Quarter 2010 Earnings Conference Call 25 Research & Development Expense Equipment Operations Third Quarter 2010 Up ~ 5% vs. Q3 2009 Currency translation: ~ (2) points Fiscal Year 2010 Forecast Up ~ 10% vs. FY 2009 Previous forecast up ~ 13% vs. FY 2009 Deere & Company Forecast as of 18 August
Slide 25: Pension and OPEB Expense
| 3rd Quarter 2010 Earnings Conference Call 26 Pension and OPEB Expense Third Quarter 2010 Up ~ $100 million vs. Q3 2009 Fiscal Year 2010 Forecast Up ~ $350 million vs. FY 2009 Change by category COS ~ $275 million (previous forecast ~ $300 million) SA&G ~ $75 million (previous forecast ~ $50 millio
Slide 26: Selling, Administrative & General Expense
| 3rd Quarter 2010 Earnings Conference Call 27 Selling, Administrative & General Expense Equipment Operations Third Quarter 2010 Up ~ 17% vs. Q3 2009 Variable incentive compensation: ~ +8 points Pension and OPEB expense: ~ +3 points Fiscal Year 2010 Forecast Up ~ 9% vs. FY 2009 Variable incentive co
Slide 27: Income Taxes
| 3rd Quarter 2010 Earnings Conference Call 28 Income Taxes Equipment Operations Third Quarter 2010 Effective tax rate of ~34% Fiscal Year 2010 Forecast Projected effective tax rate, as reported ~ 40% Tax expense related to U.S. health-care legislation ~ 6% ~ $130 million, recognized in second quart
Slide 28: Continued Strong Operating Performance
| 3rd Quarter 2010 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 Forecast: ~ $2.4 billion Previous forecast: ~ $2.5 billion Deere & Company Forecast as
Slide 29: Share Repurchase
| 3rd Quarter 2010 Earnings Conference Call 30 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 YTD 1.7 $0.1 Total 116.2 $5.7 Cumulat
Slide 30: Other Information
| 3rd Quarter 2010 Earnings Conference Call 31 Other Information Fiscal Year 2010 Forecast Equipment Operations Capital Expenditures ~ $850 million Previous forecast ~ $900 million Depreciation and Amortization ~ $550 million No change from previous forecast Pension/OPEB Contributions ~ $700 million
Slide 31: Appendix
| 3rd Quarter 2010 Earnings Conference Call 32 Appendix 55
Slide 32: Supplemental Data – Fiscal 2009
| 3rd Quarter 2010 Earnings Conference Call 33 Supplemental Data – Fiscal 2009 NOTE: Due to the magnitude of the amounts for the items listed above, management believes the above additional supplemental data provides valuable insight into the operating performance for fiscal year 2009. Management be
Slide 33: U.S. Farm Prices
| 3rd Quarter 2010 Earnings Conference Call 34 U.S. Farm Prices Source: Actual Data: USDA Forecast Data: Deere & Company Forecast as of 18 August 2010 57 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Wheat Corn Soybeans
Slide 34: World Farm Fundamentals
| 3rd Quarter 2010 Earnings Conference Call 35 World Farm Fundamentals Global Stocks-To-Use Ratios Corn Wheat Soybeans Source: USDA - 12 August 2010 Cotton 58
Slide 35: U.S. Net Farm Cash Income
| 3rd Quarter 2010 Earnings Conference Call 36 U.S. Net Farm Cash Income (in billions of dollars) 2009 Previous 2009 2010 Forecast Previous 2010 2011 Forecast Previous 2011 Total Cash Receipts 298.0 298.0 317.1 312.9 323.9 317.8 Other Cash Income 20.7 20.7 21.6 21.6 22.5 22.5 Gross Cash Income 318.7
Slide 36: Credit Operations Non-Performing Receivables
| 3rd Quarter 2010 Earnings Conference Call 37 July 2010 July 2009 A&T – Retail Notes* 1.62% 1.59% C&F – Retail Notes 2.39% 1.17% Revolving Charge Accounts 0.05% 0.04% Financing Leases 2.57% 2.55% Total Owned Non-Performing Receivables** 1.24% 1.23% * As of 31 July 2010 and 2009, Brazil non-performi
Slide 37: John Deere Capital Corporation Past-Dues and Write-offs
| 3rd Quarter 2010 Earnings Conference Call 38 Past-Dues Annualized Write-offs July 2010 July 2009 Q3 2010 Q3 2009 A&T – Retail Notes 0.14% 0.20% -0.02% 0.04% C&F – Retail Notes 0.36% 0.69% -0.07% 2.59% Revolving Charge Accounts 0.95% 1.26% 2.87% 3.12% Financing Leases 1.52% 1.48% -0.41% 0.41% Total
Slide 38: John Deere Capital Corporation Non-Performing Receivables
| 3rd Quarter 2010 Earnings Conference Call 39 July 2010 July 2009 A&T – Retail Notes 0.56% 0.35% C&F – Retail Notes 2.70% 1.29% Revolving Charge Accounts 0.04% 0.04% Financing Leases 4.15% 3.77% Total Owned Non-Performing Receivables 0.68% 0.59% John Deere Capital Corporation Owned Portfolio Non-Pe
Slide 39: Fourth quarter 2010 conference call scheduled
Deere’s fourth quarter 2010 conference call is scheduled for 9:00 a.m. central time on Wednesday, November 24, 2010 63