Deere & Company · NYSE:DE
Deere & — Q1 2022 Earnings Presentation
25 slides from Deere &'s earnings presentation, Feb 18, 2022
Slide 1: 1Q 2022 Earnings Call
1Q 2022 Earnings Call 18 February 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: 1Q 2022 Results
1Q 2022 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $9,112 $9,569 $8,051 $8,531 $1,224 $3.87 $903 $2.92 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 5% 6% 26%
Slide 4: Production and Precision Ag
Production and Precision Ag 1Q 2022 Results $ in millions Net Sales 9% Operating Profit Comparison $39 ($407) $55 $244 $3,356 $3,069 ($105) $643 ($49) ($101) ($23) $296 1Q 2021 1Q 2022 1Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 1Q 2022 Mix Costs R&D Items 4 John Deere | 1
Slide 5: Small Ag and Turf
Small Ag and Turf 1Q 2022 Results $ in millions Net Sales 5% Operating Profit Comparison $29 ($239) $16 $161 $2,631 $2,515 ($14) ($18) ($6) ($27) $469 $371 1Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 1Q 2022 1Q 2021 1Q 2022 Mix Costs R&D Items 5 John Deere | 1Q 2022 Earnin
Slide 6: 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 ~20% Flat ~5% SOUTH AMERICA AG ASIA AG (tractors and combines) 5-10% Flat Source: Deere & Company forecast as of 18 February 2022 6 John Deere | 1Q 2022 Earnings Call | February 18, 2022
Slide 7: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook Net Sales Operating Margin 25-30% 21-22% 20.2% $16,509 FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 18 February 2022 7 John Deere | 1Q 2022 Earnings Call | February 18, 2022
Slide 8: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook Net Sales Operating Margin ~15% 15.5-16.5% 17.2% $11,860 FY 2021 FY 2022 Fcst FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 18 February 2022 8 John Deere | 1Q 2022 Earnings Call | February 18, 2022
Slide 9: Construction and Forestry
Construction and Forestry 1Q 2022 Results $ in millions Net Sales 3% Operating Profit Comparison $177 ($4) $12 ($132) $2,467 $2,544 $26 $9 ($22) ($62) $268 $272 1Q 2021 1Q 2022 1Q 2021 Volume/ Price Currency Warranty Production SA&G/ Special Other 1Q 2022 Mix Costs R&D Items 9 John Deere | 1Q 2022 E
Slide 10: Construction and Forestry Industry Outlook – FY 2022
Construction and Forestry Industry Outlook – FY 2022 NORTH AMERICA NORTH AMERICA COMPACT CONSTRUCTION EQUIPMENT CONSTRUCTION EQUIPMENT 5-10% Flat to up 5% GLOBAL ROADBUILDING GLOBAL FORESTRY 5-10% 10-15% Source: Deere & Company forecast as of 18 February 2022 10 John Deere | 1Q 2022 Earnings Call |
Slide 11: 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 18 February 2022 11 John Deere | 1Q 2022 Earnings Call | February 18, 2022
Slide 12: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook Quarter Results Fiscal Year Outlook $231 $204 $881 $870 1Q 2021 1Q 2022 FY 2021 FY 2022 Fcst Source: Deere & Company forecast as of 18 February 2022 12 John Deere | 1Q 2022 Earnings Call | February 18, 2022
Slide 13: Deere & Company Outlook
Deere & Company Outlook FY 2022 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* $6.7-7.1B 25-27% $6.2-6.6B *Equipment Operations Source: Deere & Company forecast as of 18 February 2022 13 John Deere | 1Q 2022 Earnings Call | February 18, 2022
Slide 14: Leap Ambitions
Leap Ambitions 14 John Deere | 1Q 2022 Earnings Call | February 18, 2022
Slide 15: Economic and sustainable value for customers through advanced technology
JOHN DEERE is uniquely positioned to deliver both ECONOMIC and SUSTAINABLE VALUE for our customers through ADVANCED TECHNOLOGY and SOLUTIONS. 15 John Deere | 1Q 2022 Earnings Call | February 18, 2022
Slide 16: Incremental Addressable Market Opportunities >$150B: Executing Our Strategy
INCREMENTAL ADDRESSABLE MARKET OPPORTUNITIES >$150B EXECUTING OUR STRATEGY PRODUCTION & PRECISION AG SMALL AG & TURF CONSTRUCTION & FORESTRY Grow engaged, highly engaged and Accelerate tech stack integration by Deliver electric/hybrid options and sustainability engaged acres focusing on connectivity
Slide 17: Appendix
Appendix 17 John Deere | 1Q 2022 Earnings Call | February 18, 2022
Slide 18: >$150 Billion Incremental Addressable Market Opportunity
INCREMENTAL ADDRESSABLE MARKET OPPORTUNITY >$150 BILLION PRODUCTION & PRECISION AG SMALL AG & TURF CONSTRUCTION & FORESTRY EXECUTING OUR STRATEGY By 2026 By 2026 By 2026 – Reach 500 million engaged acres – Ensure 100% of new Small Ag equipment is – Deliver 20+ electric and hybrid-electric with 50% h
Slide 19: Leap Ambitions Glossary
Leap Ambitions Glossary Leap Ambitions The performance and sustainability measures of the John Deere Smart Industrial strategy. Incremental Addressable Market Opportunity The new opportunity for all stakeholders across the applicable acres and job sites that John Deere solutions operate in beyond th
Slide 20: Other Financial Information
Other Financial Information Equipment Operations FY 2022 ($ millions) 1Q 2022 Forecast Cost of Sales (percent of Net Sales) 78% ~73% Selling, Administrative and General Expenses 1% ~9% Research and Development Expenses 10% ~17% Capital Expenditures ~ $1,175 Pension/OPEB Expenses ~ $20 Pension/OPEB C
Slide 21: January 2022 Retail Sales and Dealer Inventories
January 2022 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 2% More than the industry 2WD Tractors (40 < 100 PTO hp) 1% More than the industry 2WD Tractors (100+ PTO hp) 26% More than the industry 4WD Tractors 1% Do
Slide 22: January 2022 Retail Sales (Rolling 3 Months)
January 2022 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 Single digit Construction and Forestry First-in-the-Dirt Single digit Settlements Single digit * Based o
Slide 23: 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 24: Deere & Company's 2Q 2022 earnings call
Deere & Company’s 2Q 2022 earnings call is scheduled for 9:00 a.m. central time on Friday, 20 May 2022. 24 John Deere | 1Q 2022 Earnings Call | February 18, 2022
Slide 25: John Deere
@ JOHN DEERE