Deere & Company · NYSE:DE
Deere & — Q2 2021 Earnings Presentation
21 slides from Deere &'s earnings presentation, May 21, 2021
Slide 1: 2Q 2021 Earnings Call
2Q 2021 Earnings Call 21 May 2021 HagieTM STS16 Self-Propelled Sprayer equipped with ExactApplyTM
Slide 2: Safe Harbor Statement & Disclosures
Safe Harbor Statement & 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 acce
Slide 3: 2Q 2021 Results
2Q 2021 Results ($ millions except where noted) Net Sales & Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $12,058 $10,998 $1,790 $5.68 $9,253 $8,224 $666 $2.11 2Q 2020 2Q 2021 2Q 2020 2Q 2021 2Q 2020 2Q 2021 2Q 2020 2Q 2021 30% 34% 1
Slide 4: Production and Precision Ag
Production and Precision Ag 2Q 2021 Results $ in millions Net Sales 35% Operating Profit Comparison $297 ($8) $8 ($139) $4 $37 $5 $4,529 $235 $1,007 $3,365 $568 2Q 2020 Volume/ Price Currency Warranty Production SA&G/ Special Other 2Q 2021 2Q 2020 2Q 2021 Mix Costs R&D Items 4 John Deere | 2Q 2021 E
Slide 5: Small Ag and Turf
Small Ag and Turf 2Q 2021 Results $ in millions Net Sales 30% Operating Profit Comparison $40 $14 ($35) $148 $1 $1 ($33) $3,390 $648 $286 $2,603 $226 2Q 2020 Volume/ Price Currency Warranty Production SA&G/ Special Other 2Q 2021 2Q 2020 2Q 2021 Mix Costs R&D Items 5 John Deere | 2Q 2021 Earnings Cal
Slide 6: Global Ag Environment
Global Ag Environment Fundamentals Demand Challenges ▪ Stocks/Use ▪ Broad Based Strength ▪ Supply Constraints ▪ Cash Receipts ▪ Inventory Position ▪ Material & Logistics ▪ Market Access ▪ COVID-19 6 John Deere | 2Q 2021 Earnings Call | May 21, 2021
Slide 7: Ag & Turf Industry Outlook – FY 2021
Ag & Turf Industry Outlook – FY 2021 U.S. & CANADA U.S. & CANADA EUROPE AG LARGE AG SMALL AG & TURF ~25% ~10% ~10% SOUTH AMERICA AG ASIA AG (tractors and combines) ~20% Slightly Source: Deere & Company forecast as of 21 May 2021 7 John Deere | 2Q 2021 Earnings Call | May 21, 2021
Slide 8: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook Net Sales Operating Margin 25%-30% 20%-21% $12,962 15.2% FY 2020 FY 2021 Fcst FY 2020 FY 2021 Fcst Source: Deere & Company forecast as of 21 May 2021 8 John Deere | 2Q 2021 Earnings Call | May 21, 2021
Slide 9: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook Net Sales Operating Margin 20%-25% 16.5%-17.5% $9,363 10.7% FY 2020 FY 2021 Fcst FY 2020 FY 2021 Fcst Source: Deere & Company forecast as of 21 May 2021 9 John Deere | 2Q 2021 Earnings Call | May 21, 2021
Slide 10: Construction and Forestry
Construction and Forestry 2Q 2021 Results $ in millions Net Sales 36% Operating Profit Comparison $43 $85 $489 $14 ($5) ($29) $104 $3,079 $3 $2,256 $178 $96 2Q 2020 Volume/ Price Currency Warranty Production SA&G/ Special Other 2Q 2021 2Q 2020 2Q 2021 Mix Costs R&D Items 10 John Deere | 2Q 2021 Earn
Slide 11: Construction and Forestry Industry Outlook – FY 2021
Construction and Forestry Industry Outlook – FY 2021 NORTH AMERICA NORTH AMERICA COMPACT GLOBAL FORESTRY CONSTRUCTION EQUIPMENT CONSTRUCTION EQUIPMENT 15-20% 20-25% 15-20% Source: Deere & Company forecast as of 21 May 2021 11 John Deere | 2Q 2021 Earnings Call | May 21, 2021
Slide 12: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook Net Sales Operating Margin 12%-13% 25%-30% $8,947 6.6% FY 2020 FY 2021 Fcst FY 2020 FY 2021 Fcst Source: Deere & Company forecast as of 21 May 2021 12 John Deere | 2Q 2021 Earnings Call | May 21, 2021
Slide 13: Financial Services Net Income - Results and Outlook
Financial Services Net Income - Results and Outlook Quarter Results Fiscal Year Forecast $222 $800 $566 $60 2Q 2020 2Q 2021 FY 2020 FY 2021 Fcst Source: Deere & Company forecast as of 21 May 2021 13 John Deere | 2Q 2021 Earnings Call | May 21, 2021
Slide 14: Deere & Company Outlook
Deere & Company Outlook FY 2021 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* $5.3-5.7B 23-25% $5.1-5.5B *Equipment Operations Source: Deere & Company forecast as of 21 May 2021 14 John Deere | 2Q 2021 Earnings Call | May 21, 2021
Slide 15: Appendix
Appendix 15 John Deere | 2Q 2021 Earnings Call | May 21, 2021
Slide 16: Other Financial Information
Other Financial Information Equipment Operations FY 2021 ($ millions) 2Q 2021 Forecast COS (percent of Net Sales)* 72% ~73% SA&G* 5% ~2% Research and Development* 7% ~3% Capital Expenditures ~ $925 Pension/OPEB Expense ~ $140 Pension/OPEB Contributions ~ $940 *As reported (including Employee Separat
Slide 17: April 2021 Retail Sales and Dealer Inventories
April 2021 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 48% Less than the industry 2WD Tractors (40 < 100 PTO hp) 38% Less than the industry 2WD Tractors (100+ PTO hp) 30% More than the industry 4WD Tractors 21% L
Slide 18: April 2021 Retail Sales (Rolling 3 Months)
April 2021 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Low double digits Combines Double digits Retail Sales U.S. and Canada Deere* Selected Turf & Utility Equipment Double digits Construction & Forestry First-in-the-Dirt Double digits Settlements Double digits * Based on
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 3Q 2021 earnings call
Deere & Company’s 3Q 2021 earnings call is scheduled for 9:00 a.m. central time on Friday, 20 August 2021. 20 John Deere | 2Q 2021 Earnings Call | May 21, 2021
Slide 21: John Deere
@ JOHN DEERE