Deere & Company · NYSE:DE
Deere & — Investor Presentation (November 2021)
30 slides from Deere &'s investor presentation, November 2021
Slide 1: Investor Presentation Fiscal 2022
Investor Presentation Fiscal 2022 1 John Deere | Investor Presentation
Slide 2: Safe Harbor Statement & Disclosures
Safe Harbor Statement & Disclosures This presentation includes forward-looking comments subject to important risks and uncertainties. It may also contain financial measures that are not in conformance with accounting principles generally accepted in the United States of America (GAAP). Refer to Deer
Slide 3: Table of Contents
Table of Contents Strategy 4 Financial Performance 16 Use of Cash 24 Appendix 28 3 John Deere | Investor Presentation
Slide 4: John Deere Strategy
John Deere Strategy 4 John Deere | Investor Presentation
Slide 5: John Deere's Smart Industrial strategy
John Deere will deliver intelligent, connected John Deere’s Smart machines and applications that will revolutionize Industrial strategy will production systems in revolutionize agriculture agriculture and construction and construction to unlock customer economic value across the lifecycle in ways th
Slide 6: Execution of the strategy is focused on three key areas
Execution of the strategy is focused on three key areas PRODUCTION SYSTEMS TECHNOLOGY STACK LIFECYCLE SOLUTIONS Unlocks customer value by Enables our machines to be smarter, Adds value throughout the life of the making each step of the system more precise, and more productive product, maximizing upt
Slide 7: Production systems approach leads to customer-focused innovation
Production systems approach leads to customer-focused innovation Unlock economic value Deliver sustainable outcomes 7 John Deere | Investor Presentation
Slide 8: Organizational design aligns with our customers' business
Organizational design aligns with our customers’ business BUSINESS UNITS PRODUCTION SYSTEMS Production and Precision Ag Corn and Soy Small Grains Sugar Cane Cotton Small Ag and Turf Dairy and Livestock High-value Crops Turf and Compact Utility Construction and Forestry Earthmoving Roadbuilding Fores
Slide 9: Technology stack accelerates precision & automation while driving efficiency
Technology stack accelerates precision & automation while driving efficiency Autonomy Full set of technology required to help Automation/Machine IQ customers increase their Connectivity & Digital Solutions productivity, profitability Guidance and sustainability Hardware & Software 9 John Deere | Inv
Slide 10: Our technology stack continues to evolve
Our technology stack continues to evolve Bear Flag Autonomy Blue River Robotics Technologies Autonomous Computer Vision & Solutions Machine Learning Section ExactEmerge/ Combine Advisor Control ExactApply Artificial ExactRate Automation/Machine IQ Intelligence Harvest Profit JD Link Operations Conne
Slide 11: Lifecycle solutions enhance customer experience and extend product value
Lifecycle solutions enhance customer experience and extend product value Support Parts Services Performance Upgrades 11 John Deere | Investor Presentation
Slide 12: Executing strategy delivers sustainable outcomes
Executing strategy delivers sustainable outcomes John Deere machines, stacked with our industry-leading technology, optimize our customers’ complete production cycles – ensuring that every hour, every drop, every seed, every pound, and every pass counts – delivering better outcomes with less resourc
Slide 13: Technology drives sustainability in our customers' operations
Technology drives sustainability in our customers’ operations IMPROVED OUTCOMES DRIVEN BY EXISTING TECHNOLOGIES FUEL FERTILIZER SOYBEANS SAVED REDUCED SAVED HERBICIDES SEED CORN EMISSIONS REDUCED SAVED AVOIDED One farm can achieve lower GHG emissions equivalent to nearly $40/acre 1,000,000 ECONOMIC
Slide 14: Technology drives sustainability in our customers' operations
Technology drives sustainability in our customers’ operations EARTHMOVING – GRADE CONTROL IMPROVED OUTCOMES DRIVEN BY EXISTING TECHNOLOGIES LESS EMISSIONS REDUCED MATERIALS AVOIDED FUEL USED USAGE 1,900 TONS LESS ASPHALT used on an annual basis per machine ROADBUILDING – COLD-IN-PLACE RECYCLING ROAD
Slide 15: Operating sustainably benefits all stakeholders
Operating sustainably benefits all stakeholders OCCUPATIONAL SUSTAINABLE INCREASE SAFETY ENERGY USE RECYCLING PRODUCT PRODUCT COMMUNITY SUSTAINABILITY INNOVATIONS INVESTMENT 15 John Deere | Investor Presentation
Slide 16: Financial Performance
Financial Performance 16 John Deere | Investor Presentation
Slide 17: Net Sales and Revenues by Major Product Lines
Net Sales and Revenues by Major Product Lines Fiscal 2021 $44.0 billion Financial Other Products Forestry 3% 8% 3% Roadbuilding 9% 37% Production Ag Compact Construction 3% Construction 11% 6% 20% Turf Small Ag 17 John Deere | Investor Presentation
Slide 18: Net Sales and Revenues by Major Markets
Net Sales and Revenues by Major Markets Equipment Operations ($ Billions) Focused approach to serve customers $22.8 $18.3 $6.3 $5.2 $4.3 $4.4 $3.6 $2.6 $2.8 $2.0 U.S. & Canada Western Europe Central Europe & CIS Latin America Asia, Africa, Australia, New Zealand & Middle East 2020 2021 18 John Deere
Slide 19: Investment in New Products and Technologies
Investment in New Products and Technologies Consistent R&D investment allocated to biggest opportunities 1,800 8% 1,600 1,400 6% 1,200 $ Millions 1,000 4% 800 600 2% 400 200 0 0% 2007 2009 2011 2013 2015 2017 2019 2021 R&D $ % of Net Sales 19 John Deere | Investor Presentation
Slide 20: Investment in New Products and Technologies: R&D % to Net Sales
Investment in New Products and Technologies Demonstrated commitment to R&D 7.0% 5.9% R&D % to Net Sales 6.0% 5.3% 5.3% 5.1% 5.0% Deere 5.0% 4.0% Key Competitors 3.0% 2016 2017 2018 2019 2020 20 John Deere | Investor Presentation
Slide 21: Exceptional Operating Performance – OROA
Exceptional Operating Performance – OROA1 Equipment Operations Smart Industrial strategy drove strong operating performance in 20212 50% 45% 40% 2021 40% OROA Target Goal 35% 30% 2014 29% 2013 2012 25% 2020 2017 2018 20% 2015 2019 2016 15% 14% 10% 5% 0% 80% 100% 120% % of Mid-Cycle 1) Operating Retu
Slide 22: Exceptional Operating Performance – SVA
Exceptional Operating Performance – SVA1 Equipment Operations $4.7 billion SVA in 20212 $5,000 Adoption of SVA Model $4,000 $3,000 $ Millions $2,000 $1,000 $0 -$1,000 -$2,000 1993 1997 2001 2005 2009 2013 2017 2021 1) Shareholder Value Added; for reconciliation to GAAP see “SVA Reconciliation to GAA
Slide 23: Exceptional Operating Performance – Operating Cash Flow
Exceptional Operating Performance – Operating Cash Flow Equipment Operations $5.9 billion net cash flow in 2021 $7,000 Adoption of SVA Model $6,000 $5,000 Sale of Trade Receivables $ Millions to John Deere Financial $4,000 $3,000 $2,000 $1,000 $0 1993 1997 2001 2005 2009 2013 2017 2021 Note: Over $1
Slide 24: Use-of-Cash
Use-of-Cash 24 John Deere | Investor Presentation
Slide 25: 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 26: Sources and Uses of Cash Fiscal 2004-2021
Sources and Uses of Cash Fiscal 2004-2021 Equipment Operations ~55% of cash from operations returned to shareholders $60,000 $4,642 $456 Cash returned to $50,000 shareholders $14,324 $1,382 = Source of Cash $40,000 = Use of Cash $ Millions $54,581 $11,593 $30,000 $20,000 $18,529 $10,000 $748 $7,200
Slide 27: Deere Quarterly Dividends Declared 1Q 2004 – 4Q 2021
Deere Quarterly Dividends Declared 1Q 2004 – 4Q 2021 Quarterly dividend raised 38% in 2021 $1.05 $1.00 $0.80 $0.60 $0.40 $0.20 $0.11 $0.00 2004 2005 2006 2007* 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 * Adjusted for 2 for 1 stock split on 26 November 2007 27 John Deere |
Slide 28: Appendix
Appendix 28 John Deere | Investor Presentation
Slide 29: SVA Reconciliation to GAAP
SVA Reconciliation to GAAP Equipment Operations ($ millions except where noted) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Net Sales 6,479 7,663 8,830 9,640 11,082 11,926 9,701 11,169 11,077 11,703 13,349 17,673 19,401 19,884 21,489 Average Identifiable Assets With In
Slide 30: John Deere
@ JOHN DEERE
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