Deere & Company · NYSE:DE
Deere & — Q2 2024 Earnings Presentation
19 slides from Deere &'s earnings presentation, May 16, 2024
Slide 1: 2Q 2024 Earnings Call
2Q 2024 Earnings Call 16 May 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 “forecast,” “gu
Slide 3: 2Q 2024 Results
2Q 2024 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS Revenues (Equipment Operations) (attributable to Deere & Company) ($ per share) $17,387 $16,079 $2,860 $9.65 $15,235 $13,610 $8.53 $2,370 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 12%
Slide 4: Production and Precision Ag
Production and Precision Ag 2Q 2024 Results $ in millions Net Sales 16% Operating Profit Comparison ($627) $7,822 $2,170 $6,581 $137 ($12) $27 ($41) ($21) $0 $17 $1,650 2Q 2023 2Q 2024 2Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 2Q 2024 Mix Costs R&D Items 4 John Deere | 2
Slide 5: Small Ag and Turf
Small Ag and Turf 2Q 2024 Results $ in millions Net Sales 23% Operating Profit Comparison ($307) $4,145 $849 $3,185 $62 ($12) ($10) $6 ($14) $0 ($3) $571 2Q 2023 2Q 2024 2Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 2Q 2024 Mix Costs R&D Items 5 John Deere | 2Q 2024 Earnings
Slide 6: Ag and Turf Industry Outlook – FY 2024
Ag and Turf Industry Outlook (in units) – FY 2024 U.S. and CANADA U.S. and CANADA EUROPE AG LARGE AG SMALL AG and TURF ~15% ~10% ~15% SOUTH AMERICA AG ASIA AG (tractors and combines) 15-20% Down moderately Source: Deere & Company forecast as of 16 May 2024 6 John Deere | 2Q 2024 Earnings Call | May
Slide 7: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook $ in millions Net Sales Operating Margin 20-25% 20.5-21.5% $26,790 26.1% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 16 May 2024 7 John Deere | 2Q 2024 Earnings Call | May 16, 2024
Slide 8: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook $ in millions Net Sales Operating Margin 13.5-14.5% 20-25% $13,980 17.7% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 16 May 2024 8 John Deere | 2Q 2024 Earnings Call | May 16, 2024
Slide 9: Construction and Forestry
Construction and Forestry 2Q 2024 Results $ in millions Net Sales 7% Operating Profit Comparison ($114) $4,112 $3,844 $838 $17 ($15) $9 $4 ($46) $0 ($25) $668 2Q 2023 2Q 2024 2Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 2Q 2024 Mix Costs R&D Items 9 John Deere | 2Q 2024 Ear
Slide 10: Construction and Forestry Industry Outlook – FY 2024
Construction and Forestry Industry Outlook (in units) – FY 2024 U.S. and CANADA U.S. and CANADA COMPACT CONSTRUCTION EQUIPMENT CONSTRUCTION EQUIPMENT Flat to down 5% Flat GLOBAL FORESTRY GLOBAL ROADBUILDING ~10% Flat to down 5% Source: Deere & Company forecast as of 16 May 2024 10 John Deere | 2Q 20
Slide 11: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook $ in millions Net Sales Operating Margin 5-10% ~17% $14,795 18.2% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 16 May 2024 11 John Deere | 2Q 2024 Earnings Call | May 16, 2024
Slide 12: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook $ in millions Quarter Results Fiscal Year Outlook $162 ~ $770 $619 $28 2Q 2023 2Q 2024 FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 16 May 2024 12 John Deere | 2Q 2024 Earnings Call | May 16, 2024
Slide 13: Deere & Company Outlook
Deere & Company Outlook FY 2024 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* ~$7.0B 23-25% $7.0-7.25B Research and Development Expenses* Up slightly Other Capital Expenditures* ~$1.9B *Equipment Operations Source: Deere & Company forecast as of 16 Ma
Slide 14: Appendix
Appendix 14 John Deere | 2Q 2024 Earnings Call | May 16, 2024
Slide 15: April 2024 Retail Sales and Dealer Inventories
April 2024 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 10% In line with the industry 2WD Tractors (40 < 100 PTO hp) 6% Flat 2WD Tractors (100+ PTO hp) 4% More than the industry 4WD Tractors 4% More than the indus
Slide 16: April 2024 Retail Sales (Rolling 3 Months)
April 2024 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 Single digit Construction and Forestry First-in-the-Dirt Single digit Settlements High single digit * Based o
Slide 17: 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 18: 3Q 2024 earnings call scheduled for 15 August 2024
Deere & Company’s 3Q 2024 earnings call is scheduled for 9:00 a.m. Central Time on Thursday, 15 August 2024. 18 John Deere | 2Q 2024 Earnings Call | May 16, 2024
Slide 19: John Deere
@ JOHN DEERE