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1
Investor PresentationMay – July 2018
2
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 Deere’s reports filed on Forms 8-K (current), 10-Q (quarterly), and 10-K (annual) for
information on factors that could cause actual results to differ materially from information in this
presentation and for information reconciling financial measures to GAAP. Past performance may
not be representative of future results.
Guidance noted in the following slides was effective as of the company’s most recent earnings
release and earnings call (18 May 2018). Nothing in this presentation should be construed as
reaffirming or disaffirming such guidance.
This presentation is not an offer to sell or a solicitation of offers to buy any of Deere’s securities.
3
Table of Contents
Slide
John Deere Strategy 4
Use-of-Cash 17
Global Markets 22
John Deere Financial Services 33
Agriculture Fundamentals 38
Construction & Forestry Fundamentals 44
Appendix 49
4
John Deere Strategy
5
6
Exceptional Operating Performance - OROAEquipment Operations
* Operating Return on Operating Assets** Shareholder Value Added; for reconciliation to GAAP see “SVA* Reconciliation to GAAP” slide in Appendix
21.0% OROA* in 2017
12%
20%
28%
2001
2002
2003
2004
20052006
20072008
2009
2010
2011
2012
2013
2014
20152016
2017
-10%
0%
10%
20%
30%
40%
12% OROA (SVA** Neutral)
% of Mid-Cycle Volume
80% 100% 120%
7
Exceptional Operating Performance – SVAEquipment Operations
* Shareholder Value Added; for reconciliation to GAAP see “SVA* Reconciliation to GAAP” slide in Appendix
$1.2 billion SVA* in 2017
-$2,000
-$1,000
$0
$1,000
$2,000
$3,000
$4,000
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
$ M
illions
Adoption of SVA Model
8
Exceptional Operating Performance – Net Cash FlowEquipment Operations
* Shareholder Value AddedNote: Over $8 billion in Pension/OPEB contributions from 2001-2017
$2.4 billion Net Cash Flow in 2017
$0
$1,000
$2,000
$3,000
$4,000
$5,000
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
$ M
illions
Sale of Trade Receivables to John Deere Financial
Adoption of SVA* Model
9
Asset Management
Receivable level in 2017 lower than 1998, with more than 2x the sales
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Trade Receivables Net Sales
$ M
illions
1998 2017
10
Productivity Improvement
Net Sales and Revenues per Employee
$0
$100
$200
$300
$400
$500
$600
$700
1989 1993 1997 2001 2005 2009 2013 2017
$ T
housands
~ 5% CAGR* over 30 years
* Compound Annual Growth Rate
11
Investment in New Products and Technologies
Source: Deere & Company and competitor SEC filings
0%
2%
4%
6%
8%
$0
$300
$600
$900
$1,200
$1,500
$1,800
2003 2005 2007 2009 2011 2013 2015 2017
Deere R&D $ Deere % Competitor A % Competitor B %
Consistently spending at or above competition on technology and innovation
R&D as Percent of Net Sales
$ M
illions
12
Automated. Easy to Use. More Precise.Bigger. Faster. Stronger.
Next Frontier of AgricultureTraditional Agriculture
13
Precision AgThe Future of Farming Has Always Been Led by John Deere
Our commitment to game-changing innovation makes farming easier, smarter and more precise
14
Better machine performance
Precision AgEquipment + Technology + Services
Better job performance Better agronomic decisions
– Ensure machines function as expected
– Maximize machine performance & uptime
− John Deere Connected Support uses predictive analytics to generate notifications and repair instructions to minimize machine downtime
– Ease of use increases operator consistency
– Ensure best outcome for each pass across the field
– Coordinate machines to execute jobs more effectively and efficiently
– Monitor job progress and adjust operational plans in near real time
– See, collaborate and direct information when needed and where needed with an online set of tools
– Automate collection and transfer of data from the machine to platform
– Manage the farm from anywhere and any device
15
+Precision Ag Equipment
Precision Ag Technology
Dealer Services & Support+ =
15
16
Net Sales by Product CategoryEquipment Operations – Fiscal 2017
Agriculture & Turf$20.2 billion
Construction & Forestry$5.7 billion
Small Ag
Turf
Compact
Construction
Forestry
Other
Large Ag
17
Use-of-Cash
18
Manage the balance sheet, including liquidity, to support a rating that provides access to low-cost and readily available short- and long-term funding mechanisms
Reflects the strategic nature of our financial services operation
Committed to “A” Rating
Cash from Operations
Fund Operating and Growth Needs
Common Stock Dividend
Share Repurchase
Fund value-creating investments in our businesses
Consistently and moderately raise dividend targeting a 25%-35% payout ratio of mid-cycle earnings
Consider share repurchase as a means to deploy excess cash to shareholders, once above requirements are met and repurchase is viewed as value-enhancing
Deere Use-of-Cash Priorities
19
$0.11
$0.28
$0.60
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
2004 2005 2006 2007* 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deere Quarterly Dividends Declared 1Q 2004 – 2Q 2018
* Adjusted for 2 for 1 stock split on 26 November 2007
Dividend raised 114% since 2010
20
Share RepurchaseAs Part of Publicly Announced Plans
* All shares adjusted for two-for-one stock split effective 26 November 2007
2004–2Q 2018:
Cumulative cost of repurchases $16.5 billion
Shares repurchased 245.0 million
Average repurchase price $67.08
December 2013 authorization of $8 billion:
Amount remaining $3.2 billion
29 April 2018 period ended basic shares 324.3 million
2Q 2018 average diluted shares 329.2 million$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
0
10
20
30
40
2004 2006 2008 2010 2012 2014 2016 2018
YTD
$ B
illions
Millions o
f Share
s*
Shares Repurchased Amount Spent
Share Repurchase
35% net share reduction since 2004
21
$4,287$8,168
$37,440
$665 $146
$10,652
$1,345
$7,848
$13,904
$621
$0
$10,000
$20,000
$30,000
$40,000
$50,000
Beginning Cash
& Cash
Equivalents
(Fiscal 2004)
Cash From
Operations
Divestitures,
net of
Acquisitions
Net Change in
Debt and
Intercompany
Balances
Capital
Expenditures
Investment in
Financial
Services
Dividends Share
Repurchase, net
of Common
Stock Issuances
Other* Ending Cash &
Cash
Equivalents
(Fiscal 2017)
Sources and Uses of Cash Fiscal 2004-2017Equipment Operations
$ M
illions
~ 58% of cash from operations returned to
shareholders
* Other includes proceeds from maturities and sales of marketable securities and purchases of marketable securities and reconciliation for non-cash items including the effect of exchange rates on cash and cash equivalentsNote: “Cash from Operations” adjusted with the adoption of FASB ASU No. 2016-09 “Improvements to Employee Share-Based Payment Accounting”Source: Deere & Company SEC filings
= Source of Cash
= Use of Cash
22
Global Markets
23
Net Sales by Major MarketsEquipment Operations
$ Billions* U.S. & Canada not to scale with other markets
$17.4
$20.8$21.8
$20.2
$16.6
$14.5 $15.1
2011 2012 2013 2014 2015 2016 2017
U.S. & Canada*
$4.4 $4.3 $4.4 $4.4
$3.3 $3.2 $3.3
2011 2012 2013 2014 2015 2016 2017
Western Europe
$3.6 $3.6$4.3 $4.1
$2.4 $2.4$3.2
2011 2012 2013 2014 2015 2016 2017
Latin America
$1.9 $2.1 $2.1 $2.0 $1.9$1.4 $1.7
2011 2012 2013 2014 2015 2016 2017
Asia, Africa & Middle East
$1.4 $1.7 $1.6 $1.4 $1.0 $1.2$1.7
2011 2012 2013 2014 2015 2016 2017
Central Europe & CIS
$0.8 $1.0 $0.8 $0.8 $0.6 $0.7 $0.9
2011 2012 2013 2014 2015 2016 2017
Asia Pacific, Australia & New Zealand
24
U.S. and CanadaFactory Locations
Iowa, USA• Cotton Harvesting Equipment• Planting Equipment• Spraying Equipment• Tillage Equipment• Ag Tractors• Components• Foundry• Engines•Hay & Forage Equipment• Articulated Dump Trucks• 4WD Loaders•Motor Graders• Skidders•Wheeled Feller Bunchers• Backhoes• Compact Tracked Loaders• Crawler Dozers•High-Speed Dozers• Knuckleboom Loaders• Skid Steer Loaders• Tracked Feller Bunchers• Tracked Harvesters•High Clearance Sprayers (JV)
British Columbia, Canada• Log Loaders & Specialty Products
Alberta, Canada• Remanufactured Components
North Dakota, USA• Air Seeding Equipment• Electronics• Tillage Equipment
Wisconsin, USA• Lawn & Garden Equipment•Utility Vehicles•Golf & Turf Reel Mowers
Illinois, USA• Combine Harvesters•Headers• Planting Equipment•Hydraulic Cylinders
Tennessee, USA• Lawn Tractors
North Carolina, USA• Commercial Mowers•Golf & Turf Mowers•Utility Vehicles•Hydraulic Excavators
Georgia, USA•Utility Tractors• Compact Utility Tractors
Louisiana, USA• Sugarcane Harvesting Equipment• Tractor Loaders• Scrapers• Cotton Strippers
Missouri, USA• Remanufactured Components
Kansas, USA• Power Transmission Equipment
California, USA• Satellite Receivers
25
EU 28Factory Locations
Joensuu, Finland•Wheel Forwarders•Wheel Harvesters• Forestry Attachments
GermanyMannheim• Tractors
Zweibrücken• Combines & Forage Harvesters
Stadtlohn•Headers
Bruchsal• Tractor & Harvesting Cabs
Gummersbach•Walk-Behind & Autonomous Mowers
Windhagen•Wirtgen Milling Machines, Concrete Paving, Recyclers, Surface Miners
Tirschenreuth•Hamm Compactors
Ludwigshafen• Vögele Asphalt Paving
Göppingen • Kleemann Crushers & Screens
Mülheim• Benninghoven Asphalt Plants
Wittlich• Benninghoven Asphalt Plants
Madrid, Spain• Components
Arc-les-Gray, France• Balers• Ag Loaders
Largeasse, France• Planting Equipment
Saran, France• Engines
Horst, The Netherlands• Spraying Equipment
Ravenna, Italy• Sprayers
26
BrazilFactory Locations
Catalão, Brazil• Sugarcane Harvesters• Sprayers
Indaiatuba, Brazil• Backhoe Loaders• 4WD Loaders• Crawler Dozers• Excavators (JV)
Montenegro, Brazil• Tractors
Horizontina, Brazil• Combine Harvesters• Planters
Porto Alegre, Brazil•Wirtgen Milling Machines• Vögele Pavers•Hamm Rollers• Ciber Asphalt Mixing Plants
27
CISFactory Locations
Domodedovo, Russia• Tractors• Combine Harvesters•Motor Graders
Orenburg, Russia• Seeding Equipment• Tillage Equipment
28
ChinaFactory Locations
Jiamusi, China• Combine Harvesters• Cotton Pickers• Round Balers
Tianjin (TEDA), China• 4WD Loaders• Excavators• Engines (85-254 hp)• Tractors (85-320 hp)
Ningbo, China• Tractors (30-55 hp)• Cane Harvesters
Langfang, China•Wirtgen Milling Machines• Vögele Asphalt Paving•Hamm Rollers
29
IndiaFactory Locations
Pune, India• Engines• Transmissions• Tractors (36-75 hp)• Electronics•Hamm Rollers• Kleemann Screens• Vögele Pavers
Sirhind, India• Combine Harvesters
Dewas, India• Tractors (36-50 hp)
30
Other RegionsFactory Locations
Ramos, Mexico• Ag Loaders• Compact Utility Tractor Loaders•Utility Tractor Cabs•Hydraulic Cylinders
Monterrey, Mexico• Rotary Cutters• Implements• Components
Saltillo, Mexico• Ag Tractors• Transaxles
Torreon, Mexico• Axles• Engines• Electronics
Rosario, Argentina• Engines• Tractors• Combines
Kibbutz Beit Hashita, Israel• Cotton Picker Components
Tokoroa, New Zealand• Forestry Harvester Heads
Campana, Argentina• Carbon Fiber Technology Products
31
Worldwide Parts ServicesSupporting the Growth of Our Equipment Operations
Highlights:
– Miami, Florida (United States)– Directly supports the Latin America dealer
network, operational November 2017
– China footprint– Strategic distribution locations to support
China market, operational 2016
– Campinas, Brazil– Expansion of existing facility, operational
March 2015
Anchor Parts Distribution Centers
Regional Parts Distribution Centers or Depots
32
Engine Emissions2018 Worldwide Off-Road Emissions Regulations > 75 hp
Stage II/Tier 2
Stage IIIA/Tier 3/TREM 3A/MAR 1/China NR III
Stage IV/Final Tier 4 (> 75-750 hp)
* Includes some non-EU28 countries that follow EU28 emissions regulations
U.S. and CanadaFinal Tier 4
RussiaAg tractors: Stage II
EU28*Stage V – starting 2019
ChinaChina NR III
IndiaTREM 3A >50hp
BrazilMAR 1:• Construction equipment• Ag equipment >100hp
33
John Deere Financial Services
34
John Deere Financial ServicesSupporting the Growth of Our Equipment Operations
Owned Operations
Bank/Finance Company Partners
Retail programs through JDF not currently offered
35
John Deere Financial Services
Net Income
-$2,000
-$1,000
$0
$1,000
$2,000
$3,000
$4,000
1989 1993 1997 2001 2005 2009 2013 2017
John Deere Financial (attributable to Deere & Company) Deere & Company
$ M
illions
Consistent earnings throughout the cycle
36
Portfolio Composition by Segment
John Deere Financial Services
Portfolio Composition by Geography Portfolio Composition by Product
A&T
84%
C&F
16%
Installment
and Finance
Lease
55%
Wholesale/
Floorplan
19%
Revolving
Credit
9%
Operating
Lease
17%
U.S.
72%
Canada
11%
Europe
6%
Latin
America
7%
Australia
3% Asia
1%
Note: Information above includes all Deere & Company lending activities worldwide. John Deere Capital Corporation is the largest lending operation of Deere & Company.
$40.0 billion Net Owned Portfolio as of 29 October 2017
37
John Deere Capital Corporation
Agriculture & Turf* Construction & Forestry
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
1983 1988 1993 1998 2003 2008 2013
Net Write-offs (Ag) Installments 60+DPD (Ag)
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
1995 2000 2005 2010 2015
Net Write-offs (C&F) Installments 60+DPD (C&F)
* 1983–1985 includes construction; 1986-1994 includes lawn & grounds care; 2009 forward includes ag & turf equipment; as % of owned losses after dealer reserve charges Source: 1983–1994 internal reporting, 1995-2011 JDCC 10-K filings, 2012-2017 internal reporting
Continued extremely low write-offs in Agriculture & Turf and Construction & Forestry
38
Agriculture Fundamentals
39
Global Stocks-to-Use Ratios
Source: USDA, 10 May 2018
0%
20%
40%
60%
80%
100%
120%
0%
10%
20%
30%
40%
50%
60%
1994 1997 2000 2003 2006 2009 2012 2015 2018P
Cotto
n R
atio
s
CottonWheat
Corn
Soybeans
40
Source: USDA, 10 May 2018
Global Grain Supply and Demand
0
500
1,000
1,500
2,000
2,500
3,000
93/94 95/96 97/98 99/00 01/02 03/04 05/06 07/08 09/10 11/12 13/14 15/16 17/18
Million M
etr
ic T
ons
Production Consumption
41
0
1,000
2,000
3,000
2006 2008 2010 2012 2014 2016 2018F
Million M
etr
ic T
ons
Consumption without biofuel use
Global Grain DemandWith and Without Biofuel Use
0
1,000
2,000
3,000
2006 2008 2010 2012 2014 2016 2018F
Million M
etr
ic T
ons
Consumption with biofuel use
* Compound Annual Growth RateSource: OECD-FAO Agricultural Outlook 2017-2026, July 2017
42
U.S. Farm Cash Receipts
$0
$100
$200
$300
$400
$500
2002 2004 2006 2008 2010 2012 2014 2016 2018F
$ B
illions
Crops Livestock Government Payments
Source: 2001–2016: USDA, 7 February 20182017F–2018F: Deere & Company forecast as of 18 May 2018
43
U.S. Farm Balance Sheet
10%
15%
20%
25%
30%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 2018F
$ B
illions
Farm Debt Farm Equity Debt to Equity Ratio (%) Debt to Asset Ratio (%)
Source: 1974–2016: USDA, 7 February 20182017F–2018F: Deere & Company forecast as of 18 May 2018
44
Construction & Forestry Fundamentals
45
U.S. Housing Starts
0.0
0.5
1.0
1.5
2.0
2.5
1968 1973 1978 1983 1988 1993 1998 2003 2008 2013 2018F
Multi-Family Housing Starts Single-Family Housing Starts
Source: 1968–2016: U.S. Census Bureau, April 20182017F–2018F: Deere & Company forecast as of 18 May 2018
Millions o
f U
nits
46
-160%
-140%
-120%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
$0
$400
$800
$1,200
$1,600
$2,000
$2,400
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018F
% T
ota
l Constru
ctio
n S
pend
$ B
illions*
Government Infrastructure Investment Government Investment in Structures
Nonresidential Investment in Structures Residential Investment in Permanent Structures
U.S. Construction Spending
* 2009$ baseSource: 1998–2016: U.S. Bureau of Economic Analysis, April 2018
2017F–2018F: Deere & Company forecast as of 18 May 2018
47
Transaction provides greater exposure to transportation infrastructure, a faster growing, less cyclical sector than broader construction
− Attractive margin opportunity with significant growth tailwinds
− Road construction AND repair emphasized in many countries, resulting in a large installed base of equipment
Road Construction Equipment Spend Construction vs. Transportation Spend
50
100
150
200
250
300
2004 2006 2008 2010 2012 2014Spendin
g I
ndex (
2004=
100)
Total Construction Spending Total Transporatation Spending
Source: BCG; indexed using 2016 figures Source: IHS Global Insight
0
50
100
150
200
2016 2017E 2018E 2019E 2020E 2021E 2022E
Total Transportation Spending
Wirtgen AcquisitionAttractive Industry Fundamentals
48
End to End Road Construction Portfolio
49
Appendix
50
SVA* Reconciliation to GAAPEquipment Operations
* Shareholder Value Added
($ millions except where noted) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
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
Average Identifiable AssetsWith Inventories at LIFOWith Inventories at Standard Cost
5,4496,442
5,5516,494
6,1877,131
6,5027,488
6,6827,703
7,6728,711
7,7248,739
8,0699,039
8,7439,678
6,2297,147
5,9656,925
6,4827,477
7,2488,312
Operating ProfitPercent of Net Sales
2423.7%
84711.1%
1,00611.4%
1,12511.7%
1,40212.6%
1,47612.4%
2722.8%
6936.2%
(46)(0.4%)
4013.4%
7085.3%
1,90510.8%
1,8429.5%
Operating Return on AssetsWith Inventories at LIFOWith Inventories at Standard Cost
4.4%3.8%
15.3%13.0%
16.3%14.1%
17.3%15.0%
21.0%18.2%
19.3%16.9%
3.5%3.1%
8.6%7.7%
(0.5%)(0.5%)
6.4%5.6%
11.9%10.2%
29.4%25.5%
25.4%22.2%
SVA Cost of Assets (773) (780) (856) (898) (924) (1,045) (1,049) (1,085) (1,162) (858) (831) (897) (998)
SVA (531) 68 150 226 477 431 (776) (392) (1,208) (457) (123) 1,008 844
($ millions except where noted) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Net Sales 19,884 21,489 25,803 20,756 23,573 29,466 33,501 34,998 32,961 25,775 23,387 25,885
Average Identifiable AssetsWith Inventories at LIFOWith Inventories at Standard Cost
7,5468,634
8,0929,205
9,65210,812
9,64710,950
9,19610,494
11,51612,875
13,59414,965
14,56915,924
14,11315,493
12,49113,840
11,81613,092
12,15013,421
Operating ProfitPercent of Net Sales
1,9059.6%
2,31810.8%
2,92711.3%
1,3656.6%
2,90912.3%
3,83913.0%
4,39713.1%
5,05814.5%
4,29713.0%
2,1778.4%
1,8808.0%
2,82110.9%
Operating Return on AssetsWith Inventories at LIFOWith Inventories at Standard Cost
25.2%22.1%
28.6%25.2%
30.3%27.1%
14.1%12.5%
31.6%27.7%
33.3%29.8%
32.3%29.4%
34.7%31.8%
30.4%27.7%
17.4%15.7%
15.9%14.4%
23.2%21.0%
SVA Cost of Assets (1,036) (1,094) (1,284) (1,301) (1,259) (1,545) (1,795) (1,911) (1,860) (1,661) (1,570) (1,611)
SVA 869 1,224 1,643 64 1,650 2,294 2,602 3,147 2,437 516 310 1,210