Deere & Company · NYSE:DE
Deere & — Q3 2023 Earnings Presentation
20 slides from Deere &'s earnings presentation, Aug 18, 2023
Slide 1: 3Q 2023 Earnings Call
3Q 2023 Earnings Call 18 August 2023
Slide 2: Safe Harbor Statement and Disclosures
Safe Harbor Statement and Disclosures 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 “for
Slide 3: 3Q 2023 Results
3Q 2023 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $15,801 $2,978 $14,284 $10.20 $14,102 $13,000 $1,884 $6.16 3Q 2022 3Q 2023 3Q 2022 3Q 2023 3Q 2022 3Q 2023 3Q 2022 3Q 2023 12
Slide 4: Production and Precision Ag 3Q 2023 Results
Production and Precision Ag 3Q 2023 Results $ in millions Net Sales 12% Operating Profit Comparison $723 ($41) $4 ($77) ($74) ($1) ($72) $6,806 $6,096 $1,782 $27 $1,293 3Q 2022 3Q 2023 3Q 2022 Volume/ Price Currency Warranty Production SA&G/ Special Other 3Q 2023 Mix Costs R&D Items 4 John Deere | 3
Slide 5: Small Ag and Turf 3Q 2023 Results
Small Ag and Turf 3Q 2023 Results $ in millions Net Sales 3% Operating Profit Comparison $3,739 ($6) $25 ($71) $3,635 $337 ($38) ($8) $0 $732 ($59) $552 3Q 2022 3Q 2023 3Q 2022 Volume/ Price Currency Warranty Production SA&G/ Special Other 3Q 2023 Mix Costs R&D Items 5 John Deere | 3Q 2023 Earnings
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 ~10% 5-10% Flat to up 5% SOUTH AMERICA AG ASIA AG (tractors and combines) Flat to down 5% Down moderately Source: Deere & Company forecast as of 18 August 2023 6 John Deere | 3Q 202
Slide 7: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook $ in millions Net Sales Operating Margin ~20% 25-26% $22,002 19.9% FY 2022 FY 2023 Fcst FY 2022 FY 2023 Fcst Source: Deere & Company forecast as of 18 August 2023 7 John Deere | 3Q 2023 Earnings Call | August 18, 2023
Slide 8: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook $ in millions Net Sales Operating Margin ~5% 17-18% $13,381 14.6% FY 2022 FY 2023 Fcst FY 2022 FY 2023 Fcst Source: Deere & Company forecast as of 18 August 2023 8 John Deere | 3Q 2023 Earnings Call | August 18, 2023
Slide 9: Construction and Forestry 3Q 2023 Results
Construction and Forestry 3Q 2023 Results $ in millions Net Sales 14% Operating Profit Comparison $327 ($17) ($8) ($32) $3,739 ($34) $1 ($61) $3,269 $716 $26 $514 3Q 2022 3Q 2023 3Q 2022 Volume/ Price Currency Warranty Production SA&G/ Special Other 3Q 2023 Mix Costs R&D Items 9 John Deere | 3Q 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 to down 5% Flat to up 5% Source: Deere & Company forecast as of 18 August 2023 10 Joh
Slide 11: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook $ in millions Net Sales Operating Margin 15-20% 18.5-19.5% $12,534 16.1% FY 2022 FY 2023 Fcst FY 2022 FY 2023 Fcst Source: Deere & Company forecast as of 18 August 2023 11 John Deere | 3Q 2023 Earnings Call | August 18, 2023
Slide 12: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook $ in millions Quarter Results Fiscal Year Outlook $209 $216 $880 ~ $630 3Q 2022 3Q 2023 FY 2022 FY 2023 Fcst Source: Deere & Company forecast as of 18 August 2023 12 John Deere | 3Q 2023 Earnings Call | August 18, 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* $9.75-10.0B 21-23% $10.5-11.0B *Equipment Operations Source: Deere & Company forecast as of 18 August 2023 13 John Deere | 3Q 2023 Earnings Call | August 18, 2023
Slide 14: Appendix
Appendix 14 John Deere | 3Q 2023 Earnings Call | August 18, 2023
Slide 15: Other Financial Information
Other Financial Information Equipment Operations FY 2023 ($ millions) 3Q 2023 Forecast Cost of Sales (percent of Net Sales) 67% ~68% Selling, Administrative and General Expenses 13% ~17% Research and Development Expenses 10% ~15% Capital Expenditures ~$1,650 Pension/OPEB Expenses ~$195 Pension/OPEB
Slide 16: July 2023 Retail Sales and Dealer Inventories
July 2023 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 4% More than the industry 2WD Tractors (40 < 100 PTO hp) 4% More than the industry 2WD Tractors (100+ PTO hp) 10% In line with the industry 4WD Tractors 14% L
Slide 17: July 2023 Retail Sales (Rolling 3 Months)
July 2023 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors High 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 Flat Settlements Low double digits * Based on
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 2023 earnings call
Deere & Company’s 4Q 2023 earnings call is scheduled for 9:00 a.m. Central Time on Wednesday, 22 November 2023. 19 John Deere | 3Q 2023 Earnings Call | August 18, 2023
Slide 20: John Deere
@ JOHN DEERE