Deere & Company · NYSE:DE
Deere & — Q4 2021 Earnings Presentation
21 slides from Deere &'s earnings presentation, Nov 24, 2021
Slide 1: 4Q 2021 Earnings Call
4Q 2021 Earnings Call 24 November 2021
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: FY 2021 Results
FY 2021 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $44,024 $39,737 $5,963 $18.99 $35,540 $31,272 $2,751 $8.69 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 24
Slide 4: 4Q 2021 Results
4Q 2021 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $1,283 $11,327 $10,276 $4.12 $9,731 $8,659 $757 $2.39 4Q 2020 4Q 2021 4Q 2020 4Q 2021 4Q 2020 4Q 2021 4Q 2020 4Q 2021 16% 19%
Slide 5: Production and Precision Ag
Production and Precision Ag 4Q 2021 Results $ in millions Net Sales 23% Operating Profit Comparison $57 $5 ($391) $280 $4,661 $201 $87 ($22) $3,801 ($18) $777 $578 4Q 2020 4Q 2021 4Q 2020 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2021 Mix Costs R&D Items 5 John Deere | 4Q 202
Slide 6: Small Ag and Turf
Small Ag and Turf 4Q 2021 Results $ in millions Net Sales 17% Operating Profit Comparison $11 $8 ($203) $99 $2,809 $2,397 $119 $77 ($13) ($34) $346 $282 4Q 2020 4Q 2021 4Q 2020 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2021 Mix Costs R&D Items 6 John Deere | 4Q 2021 Earnings
Slide 7: 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 ~5% SOUTH AMERICA AG ASIA AG (tractors and combines) ~5% Flat Source: Deere & Company forecast as of 24 November 2021 7 John Deere | 4Q 2021 Earnings Call | November 24, 2021
Slide 8: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook Net Sales Operating Margin 20-25% 20-21% 20.2% $16,509 FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 24 November 2021 8 John Deere | 4Q 2021 Earnings Call | November 24, 2021
Slide 9: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook Net Sales Operating Margin 15-20% 16-17% 17.2% $11,860 FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 24 November 2021 9 John Deere | 4Q 2021 Earnings Call | November 24, 2021
Slide 10: Construction and Forestry
Construction and Forestry 4Q 2021 Results $ in millions Net Sales 14% Operating Profit Comparison $151 ($1) ($20) $2,806 ($118) $2,461 ($63) $76 $67 ($18) $270 $196 4Q 2020 4Q 2021 4Q 2020 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2021 Mix Costs R&D Items 10 John Deere | 4Q 2
Slide 11: Construction and Forestry Industry Outlook – FY 2022
Construction and Forestry Industry Outlook – FY 2022 NORTH AMERICA NORTH AMERICA COMPACT GLOBAL FORESTRY CONSTRUCTION EQUIPMENT CONSTRUCTION EQUIPMENT 5-10% 5-10% 10-15% Source: Deere & Company forecast as of 24 November 2021 11 John Deere | 4Q 2021 Earnings Call | November 24, 2021
Slide 12: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook Net Sales Operating Margin 10-15% 13.5-14.5% $11,368 13.1% FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 24 November 2021 12 John Deere | 4Q 2021 Earnings Call | November 24, 2021
Slide 13: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook Quarter Results Fiscal Year Results and Outlook $227 $881 $870 $186 $566 4Q 2020 4Q 2021 FY 2020 FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 24 November 2021 13 John Deere | 4Q 2021 Earnings Call | November 24, 2021
Slide 14: Deere & Company Outlook
Deere & Company Outlook FY 2022 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* $6.5-7.0B 25-27% $6.0-6.5B *Equipment Operations Source: Deere & Company forecast as of 24 November 2021 14 John Deere | 4Q 2021 Earnings Call | November 24, 2021
Slide 15: Appendix
Appendix 15 John Deere | 4Q 2021 Earnings Call | November 24, 2021
Slide 16: Other Financial Information
Other Financial Information Equipment Operations FY 2022 ($ millions) 4Q 2021 FY 2021 Forecast Cost of Sales (percent of Net Sales)* 76% 73% ~73% Selling, Administrative and General Expenses* 10% ~6% Research and Development Expenses* 2% 4% ~17% Capital Expenditures $845 ~ $1,175 Pension/OPEB Expens
Slide 17: October 2021 Retail Sales and Dealer Inventories
October 2021 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 5% More than the industry 2WD Tractors (40 < 100 PTO hp) 3% More than the industry 2WD Tractors (100+ PTO hp) 18% More than the industry 4WD Tractors 5% In
Slide 18: October 2021 Retail Sales (Rolling 3 Months)
October 2021 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Low double digits Combines Single digit Retail Sales U.S. and Canada Deere* Selected Turf and Utility Equipment Flat Construction and Forestry First-in-the-Dirt Low double digits Settlements Double digits * Based on
Slide 19: 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 20: Next earnings call scheduled for 18 February 2022
Deere & Company’s 1Q 2022 earnings call is scheduled for 9:00 a.m. central time on Friday, 18 February 2022. 20 John Deere | 4Q 2021 Earnings Call | November 24, 2021
Slide 21: John Deere
@ JOHN DEERE