Deere & Company · NYSE:DE
Deere & — Q1 2024 Earnings Presentation
20 slides from Deere &'s earnings presentation, Feb 15, 2024
Slide 1: 1Q 2024 Earnings Call
1Q 2024 Earnings Call 15 February 2024
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: 1Q 2024 Results
1Q 2024 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS Revenues (Equipment Operations) (attributable to Deere & Company) ($ per share) $12,652 $12,185 $11,402 $1,959 $6.55 $10,486 $1,751 $6.23 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 4%
Slide 4: Production and Precision Ag 1Q 2024 Results
Production and Precision Ag 1Q 2024 Results $ in millions Net Sales 7% Operating Profit Comparison ($273) $5,198 $202 ($1) ($20) $15 ($89) $4,849 $1,208 $0 $3 $1,045 1Q 2023 1Q 2024 1Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 1Q 2024 Mix Costs R&D Items 4 John Deere | 1Q 2
Slide 5: Small Ag and Turf 1Q 2024 Results
Small Ag and Turf 1Q 2024 Results $ in millions Net Sales 19% Operating Profit Comparison $3,001 ($215) $447 $2,425 $97 ($5) $33 ($21) ($16) $0 $6 $326 1Q 2023 1Q 2024 1Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 1Q 2024 Mix Costs R&D Items 5 John Deere | 1Q 2024 Earnings C
Slide 6: Ag and Turf Industry Outlook – 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% 10-15% SOUTH AMERICA AG ASIA AG (tractors and combines) ~10% Down moderately Source: Deere & Company forecast as of 15 February 2024 6 John Deere | 1Q 2024 Earnings Cal
Slide 7: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook $ in millions Net Sales Operating Margin 21.5-22.5% ~20% $26,790 26.1% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 15 February 2024 7 John Deere | 1Q 2024 Earnings Call | February 15, 2024
Slide 8: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook $ in millions Net Sales Operating Margin 15-16% 10-15% $13,980 17.7% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 15 February 2024 8 John Deere | 1Q 2024 Earnings Call | February 15, 2024
Slide 9: Construction and Forestry 1Q 2024 Results
Construction and Forestry 1Q 2024 Results $ in millions Net Sales Flat Operating Profit Comparison $88 ($27) $3,203 $3,212 ($5) ($49) ($7) ($13) $0 ($46) $625 $566 1Q 2023 1Q 2024 1Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 1Q 2024 Mix Costs R&D Items 9 John Deere | 1Q 202
Slide 10: Construction and Forestry Industry Outlook – FY 2024
Construction and Forestry Industry Outlook (in units) – FY 2024 U.S. and CANADA U.S. and CANADA COMPACT CONSTRUCTION EQUIPMENT CONSTRUCTION EQUIPMENT Flat to down 5% Flat GLOBAL FORESTRY GLOBAL ROADBUILDING ~10% Flat Source: Deere & Company forecast as of 15 February 2024 10 John Deere | 1Q 2024 Ear
Slide 11: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook $ in millions Net Sales Operating Margin 5-10% 17-18% $14,795 18.2% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 15 February 2024 11 John Deere | 1Q 2024 Earnings Call | February 15, 2024
Slide 12: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook $ in millions Quarter Results Fiscal Year Outlook $207 ~ $770 $185 $619 1Q 2023 1Q 2024 FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 15 February 2024 12 John Deere | 1Q 2024 Earnings Call | February 15, 2024
Slide 13: Deere & Company Outlook
Deere & Company Outlook FY 2024 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* $7.5-7.75B 24-26% $7.0-7.5B Research and Development Expenses* Up slightly Other Capital Expenditures* ~$1.9B *Equipment Operations Source: Deere & Company forecast as of 15
Slide 14: Appendix
Appendix 14 John Deere | 1Q 2024 Earnings Call | February 15, 2024
Slide 15: January 2024 Retail Sales and Dealer Inventories
January 2024 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 12% In line with the industry 2WD Tractors (40 < 100 PTO hp) 11% Less than the industry 2WD Tractors (100+ PTO hp) 5% More than the industry 4WD Tractors 1
Slide 16: January 2024 Retail Sales (Rolling 3 Months)
January 2024 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Double digits Combines Double digits 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 * B
Slide 17: 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 18: Great Leaps. For the Good of Everyone.
Great Leaps. For the Good of Everyone. View the 2023 Business Impact Report https://about.deere.com/en-us/sustainability 18 John Deere | 1Q 2024 Earnings Call | February 15, 2024
Slide 19: 2Q 2024 earnings call scheduled for 16 May 2024
Deere & Company’s 2Q 2024 earnings call is scheduled for 9:00 a.m. Central Time on Thursday, 16 May 2024. 19 John Deere | 1Q 2024 Earnings Call | February 15, 2024
Slide 20: John Deere
@ JOHN DEERE