Deere mpany : 2Q Earnings Call Earnings Call Presentation

2Q 2024 Earnings Call

16 May 2024

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," "guidance," "project," "target," "outlook," "prospects," "expect," "estimate," "will," "goal," "plan," "anticipate," "intend," "predict," "believe," "likely," "future," "could," "may," or other similar words or phrases, including the negative variations of such words or phrases. Examples of forward-looking statements include, among others, 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 acceptance, acquisitions and divestitures of businesses, anticipated transaction costs, the integration of new businesses, anticipated benefits of acquisitions, and other factors that impact the company's businesses and customers.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management's current beliefs, expectations and assumptions regarding the future of the company's business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, changes in circumstances, and other factors that are difficult to predict and many of which are outside of the Company's control causing actual results to differ materially from those projected in these forward-looking statements. Among these factors are risks related to changes in U.S. and international laws and regulations, the political and economic geographies in which we operate, international conflicts, adverse macroeconomic conditions impacting consumer practices, including demand for John Deere products, and changes in climate patterns. For a discussion of some of these risks and uncertainties see "Item 1A Risk Factors" in our most recent Annual Report on Form 10-K, as updated by our subsequent filings with the U.S. Securities and Exchange Commission. Investors should refer to and consider the information on risks and uncertainties in addition to the information presented here.

All forward-looking statements made in this earnings call and accompanying materials are based only on information currently available and speaks only as of the date on which it is made. You should not place undue reliance on forward-looking statements. The Company, except as required by law, undertakes no obligation to update or revise any forward-looking statements whether as a result of new developments or otherwise.

This earnings call and accompanying materials may contain non-GAAP financial measures. Non-GAAP measures should be viewed as a supplement to, and not in isolation from, or as a substitute for the Company's GAAP measures of performance and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated.

2 John Deere | 2Q 2024 Earnings Call | May 16, 2024

2Q 2024 Results

($ millions except where noted)

Net Sales and

Revenues

$17,387	$15,235
2Q 2023	2Q 2024
	12%

Net Sales

(Equipment Operations)

$16,079
	$13,610
2Q 2023	2Q 2024
	15%

Net Income

(attributable to

Deere & Company)

$2,860
	$2,370
2Q 2023	2Q 2024
	17%

Diluted EPS

($ per share)

$9.65	$8.53
2Q 2023	2Q 2024
	12%

3 John Deere | 2Q 2024 Earnings Call | May 16, 2024

Production and Precision Ag

2Q 2024 Results $ in millions

Net Sales	16%			Operating Profit Comparison
$7,822			($627)
	$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 | 2Q 2024 Earnings Call | May 16, 2024

Small Ag and Turf

2Q 2024 Results $ in millions

Net Sales	23%			Operating Profit Comparison
$4,145			($307)
	$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 Call | May 16, 2024

Ag and Turf

Industry Outlook (in units) - FY 2024

U.S. and CANADA	U.S. and CANADA
LARGE AG	SMALL AG and TURF

~15%

~10%

SOUTH AMERICA AG

ASIA AG

(tractors and combines)

15-20%

Down moderately

Source: Deere & Company forecast as of 16 May 2024

EUROPE AG

~15%

6 John Deere | 2Q 2024 Earnings Call | May 16, 2024

Production and Precision Ag

Business Segment Outlook $ in millions

Net Sales

	20-25%
$26,790
FY 2023	FY 2024 Fcst

Operating Margin

	20.5-21.5%
26.1%
FY 2023	FY 2024 Fcst

Source: Deere & Company forecast as of 16 May 2024

7 John Deere | 2Q 2024 Earnings Call | May 16, 2024

Small Ag and Turf

Business Segment Outlook $ in millions

Net Sales

	20-25%
$13,980
FY 2023	FY 2024 Fcst

Operating Margin

	13.5-14.5%
17.7%
FY 2023	FY 2024 Fcst

Source: Deere & Company forecast as of 16 May 2024

8 John Deere | 2Q 2024 Earnings Call | May 16, 2024

Construction and Forestry

2Q 2024 Results $ in millions

Net Sales	7%			Operating Profit Comparison
$4,112			($114)
$3,844	$838			($15)
		$17	$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 Earnings Call | May 16, 2024

Construction and Forestry

Industry Outlook (in units) - FY 2024

U.S. and CANADA

CONSTRUCTION EQUIPMENT

Flat to down 5%

U.S. and CANADA COMPACT CONSTRUCTION EQUIPMENT

Flat

GLOBAL FORESTRY

~10%

Source: Deere & Company forecast as of 16 May 2024

GLOBAL ROADBUILDING

Flat to down 5%

10 John Deere | 2Q 2024 Earnings Call | May 16, 2024