Deere & Company · NYSE:DE
Deere & — Investor Presentation (August 2023)
28 slides from Deere &'s investor presentation, August 2023
Slide 1: Investor Presentation
Investor Presentation 1
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 14 Use of Cash 21 Appendix 25 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 Autonomous Robotics Autonomous Tractor/ Autonomy Blue River Tillage Solution Technologies Solutions Computer Vision & Machine Learning Section ExactEmerge/ Combine Advisor See & Control ExactApply Artificial ExactRate Spray ExactShot Automation/Mach
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: Our Leap Ambitions measure our ability to execute this Smart Industrial strategy
Our Leap Ambitions measure our ability to execute this Smart Industrial strategy JOHN DEERE is uniquely positioned to deliver both ECONOMIC and SUSTAINABLE VALUE for our customers through ADVANCED TECHNOLOGY and SOLUTIONS. 12 John Deere | Investor Presentation
Slide 13: >$150 Billion Incremental Addressable Market Opportunity
INCREMENTAL ADDRESSABLE MARKET OPPORTUNITY >$150 BILLION PRODUCTION & SMALL AG & TURF CONSTRUCTION & PRECISION AG FORESTRY By 2026 By 2026 By 2026 – Reach 500 million engaged acres – Ensure 100% of new Small Ag equipment is – Deliver 20+ electric and hybrid electric with 50% highly engaged connectiv
Slide 14: Financial Performance
Financial Performance 14 John Deere | Investor Presentation
Slide 15: Net Sales and Revenues by Major Product Lines
Net Sales and Revenues by Major Product Lines Fiscal 2022 $52.6 billion Financial Other Products Forestry 3% 7% Roadbuilding 3% 7% Compact Construction 3% 41% Production Ag Construction 11% 6% 19% Turf Small Ag 15 John Deere | Investor Presentation
Slide 16: Net Sales and Revenues by Major Markets
Net Sales and Revenues by Major Markets Equipment Operations ($ billions) Focused approach to serve customers $29.1 $22.8 $7.0 $6.3 $6.2 $4.3 $4.4 $4.3 $2.6 $2.2 U.S. & Canada Western Europe Central Europe & CIS Latin America Asia, Africa, Australia, New Zealand & Middle East 2021 2022 16 John Deere
Slide 17: Investment in New Products and Technologies
Investment in New Products and Technologies Consistent R&D investment allocated to biggest opportunities 2,000 8% 1,800 1,600 6% 1,400 1,200 $ Millions 1,000 4% 800 600 2% 400 200 0 0% 2008 2010 2012 2014 2016 2018 2020 2022 R&D $ % of Net Sales 17 John Deere | Investor Presentation
Slide 18: Exceptional Operating Performance – OROA
Exceptional Operating Performance – OROA1 Equipment Operations Smart Industrial strategy drives strong operating performance 50% OROA Target 2022 40% 2021 40% 30% 2014 30% 2013 2017 2020 2018 20% 2019 2015 2016 15% 10% 0% 80% 100% 120% % of Mid-Cycle 1) Operating Return on Operating Assets - beginni
Slide 19: Exceptional Operating Performance – SVA
Exceptional Operating Performance – SVA1 Equipment Operations $5.8 billion SVA in 20222 $7,000 Adoption of SVA Model $6,000 $5,000 $4,000 $ Millions $3,000 $2,000 $1,000 $0 -$1,000 -$2,000 1993 1997 2002 2007 2012 2017 2022 1) Shareholder Value Added; for reconciliation to GAAP see “SVA Reconciliati
Slide 20: Exceptional Operating Performance – Operating Cash Flow
Exceptional Operating Performance – Operating Cash Flow Equipment Operations $6.2 billion net cash flow in 2022 $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 2002 2007 2012 2017 2022 Note: ~$13.2 billi
Slide 21: Use-of-Cash
Use-of-Cash 21 John Deere | Investor Presentation
Slide 22: 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 23: Sources and Uses of Cash Fiscal 2004-2022
Sources and Uses of Cash Fiscal 2004-2022 Equipment Operations ~57% of cash from operations returned to shareholders $70,000 $5,140 $3,171 Cash returned to $60,000 shareholders $50,000 $15,455 = Source of Cash $1,375 = Use of Cash $ Millions $40,000 $60,820 $12,906 $30,000 $20,000 $22,063 $10,000 $1
Slide 24: Deere Quarterly Dividends Declared 1Q 2004 – 3Q 2023
Deere Quarterly Dividends Declared 1Q 2004 – 3Q 2023 Quarterly dividend raised 64% since 2020 $1.25 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00 2004 2005 2006 2007* 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 * Adjusted for 2 for 1 stock split on 26 November 2007 24 John
Slide 25: Appendix
Appendix 25 John Deere | Investor Presentation
Slide 26: Leap Ambitions Glossary
Leap Ambitions Glossary Leap Ambitions The performance and sustainability measures of the John Deere Smart Industrial strategy. Incremental Addressable Market Opportunity The new opportunity for all stakeholders across the applicable acres and job sites that John Deere solutions operate in beyond th
Slide 27: SVA Reconciliation to GAAP
SVA Reconciliation to GAAP Equipment Operations ($ 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 28: John Deere
@ JOHN DEERE
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