Deere & Company · NYSE:DE
Deere & — Q4 2022 Earnings Presentation
21 slides from Deere &'s earnings presentation, Nov 23, 2022
Slide 1: 4Q 2022 Earnings Call
4Q 2022 Earnings Call 23 November 2022
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 2022 Results
FY 2022 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $52,577 $47,917 $7,131 $23.28 $44,024 $39,737 $5,963 $18.99 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 1
Slide 4: 4Q 2022 Results
4Q 2022 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $15,536 $14,351 $2,246 $7.44 $11,327 $10,276 $1,283 $4.12 4Q 2021 4Q 2022 4Q 2021 4Q 2022 4Q 2021 4Q 2022 4Q 2021 4Q 2022 37%
Slide 5: Production and Precision Ag
Production and Precision Ag 4Q 2022 Results $ in millions Net Sales 59% Operating Profit Comparison $873 ($6) $27 ($586) $7,434 ($141) ($70) ($28) $894 $4,661 $1,740 $777 4Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2022 4Q 2021 4Q 2022 Mix Costs R&D Items 5 John Deere |
Slide 6: Small Ag and Turf
Small Ag and Turf 4Q 2022 Results $ in millions Net Sales 26% Operating Profit Comparison $350 ($30) $7 ($269) $3,544 $2,809 ($56) $191 ($8) ($25) $506 $346 4Q 2021 4Q 2022 4Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2022 Mix Costs R&D Items 6 John Deere | 4Q 2022 Earni
Slide 7: 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 5-10% Flat to down 5% Flat to up 5% SOUTH AMERICA AG ASIA AG (tractors and combines) Flat to up 5% Down moderately Source: Deere & Company forecast as of 23 November 2022 7 John Dee
Slide 8: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook Net Sales Operating Margin 15-20% 22-23% $22,002 19.9% FY 2022 FY 2023 Fcst FY 2022 FY 2023 Fcst Source: Deere & Company forecast as of 23 November 2022 8 John Deere | 4Q 2022 Earnings Call | November 23, 2022
Slide 9: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook Net Sales Operating Margin Flat to up 5% 14.5-15.5% $13,381 14.6% FY 2022 FY 2023 Fcst FY 2022 Fcst FY 2023 Fcst Source: Deere & Company forecast as of 23 November 2022 9 John Deere | 4Q 2022 Earnings Call | November 23, 2022
Slide 10: Construction and Forestry
Construction and Forestry 4Q 2022 Results $ in millions Net Sales 20% Operating Profit Comparison $25 $7 ($260) $357 $3,373 $2,806 ($40) ($50) $30 $75 $414 $270 4Q 2021 4Q 2022 4Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 4Q 2022 Mix Costs R&D Items 10 John Deere | 4Q 2022
Slide 11: 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 Flat Source: Deere & Company forecast as of 23 November 2022 11 John Deere | 4Q 2022
Slide 12: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook Net Sales Operating Margin ~10% 15.5-16.5% $12,534 16.1% FY 2022 FY 2023 Fcst FY 2022 FY 2023 Fcst Source: Deere & Company forecast as of 23 November 2022 12 John Deere | 4Q 2022 Earnings Call | November 23, 2022
Slide 13: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook Quarter Results Fiscal Year Outlook $232 $227 $880 ~ $900 4Q 2021 4Q 2022 FY 2022 FY 2023 Fcst Source: Deere & Company forecast as of 23 November 2022 13 John Deere | 4Q 2022 Earnings Call | November 23, 2022
Slide 14: Deere & Company Outlook
Deere & Company Outlook FY 2023 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* $8.0-8.5B 23-25% $9.0-9.5B *Equipment Operations Source: Deere & Company forecast as of 23 November 2022 14 John Deere | 4Q 2022 Earnings Call | November 23, 2022
Slide 15: Appendix
Appendix 15 John Deere | 4Q 2022 Earnings Call | November 23, 2022
Slide 16: Other Financial Information
Other Financial Information Equipment Operations FY 2023 ($ millions) 4Q 2022 FY 2022 Forecast Cost of Sales (percent of Net Sales) 71% 74% ~71% Selling, Administrative and General Expenses 15% 9% ~14% Research and Development Expenses 28% 21% ~10% Capital Expenditures $1,100 ~ $1,400 Pension/OPEB E
Slide 17: October 2022 Retail Sales and Dealer Inventories
October 2022 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 18% More than the industry 2WD Tractors (40 < 100 PTO hp) 4% Double digits 2WD Tractors (100+ PTO hp) 17% More than the industry 4WD Tractors 1% Single dig
Slide 18: October 2022 Retail Sales (Rolling 3 Months)
October 2022 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 High single digit Construction and Forestry First-in-the-Dirt Single digit Settlements Flat * Based on inte
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: Deere & Company's 1Q 2023 earnings call
Deere & Company’s 1Q 2023 earnings call is scheduled for 9:00 a.m. Central Time on Friday, 17 February 2023. 20 John Deere | 4Q 2022 Earnings Call | November 23, 2022
Slide 21: John Deere
@ JOHN DEERE