Deere & Company · NYSE:DE
Deere & — Q3 2020 Earnings Presentation
21 slides from Deere &'s earnings presentation, Aug 21, 2020
Slide 1: 3Q 2020 Earnings Call
3Q 2020 Earnings Call 21 August 2020
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: 3Q 2020 Results
3Q 2020 Results ($ millions except where noted) Net Sales & Net Sales Net Income Diluted EPS (Equipment Operations) (attributable to ($ per share) Revenues Deere & Company) $8,969 $899 $2.81 $10,036 $811 $2.57 $8,925 $7,859 3Q 2019 3Q 2020 3Q 2019 3Q 2020 3Q 2019 3Q 2020 3Q 2019 3Q 2020 11% 12% 10%
Slide 4: Worldwide Agriculture & Turf
Worldwide Agriculture & Turf 3Q 2020 Results $ in millions Net Sales 5% Operating Profit Comparison $5,946 $942 $5,672 $612 ($52) $262 ($100) $46 ($15) $145 ($37) $81 3Q 2019 3Q 2020 3Q19 Volume/ Price Currency Warranty Production SA&G/ Special Other 3Q20 Mix Costs R&D Items 4 John Deere | 3Q20 Earn
Slide 5: Agriculture & Turf Industry Outlook – FY20
Agriculture & Turf Industry Outlook – FY20 U.S. & CANADA AG EUROPE AG SOUTH AMERICA AG (tractors and combines) ~5-10% ~5%-10% ~10%-15% ASIA AG U.S. & CANADA TURF & UTILITY Slightly ~5% Source: Deere & Company forecast as of 21 August 2020 5 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 6: Worldwide Agriculture & Turf Divisional Outlook
Worldwide Agriculture & Turf Divisional Outlook NET SALES OPERATING MARGIN ~11.5% ~10% $23,666 10.6% FY2019 FY2020 Fcst FY2019 FY2020 Fcst Source: Deere & Company forecast as of 21 August 2020 6 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 7: Smart Industrial Operating Model
Smart Industrial Operating Model PRODUCTION SYSTEMS TECHNOLOGY STACK LIFECYCLE SOLUTIONS 7 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 8: Production Systems
Production Systems CORN & SOY SMALL GRAINS SUGAR CANE COTTON PRODUCTION SYSTEMS APPROACH LEADS TO INNOVATIONS LIKE THESE 8 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 9: Worldwide Construction & Forestry
Worldwide Construction & Forestry 3Q 2020 Results $ in millions Operating Profit Comparison Net Sales 28% $378 $3,023 $2,187 $205 ($306) $84 ($14) $14 $2 $35 $12 3Q 2019 3Q 2020 3Q19 Volume/Mix Price Currency Warranty Production SA&G/ Other 3Q20 Costs R&D 9 John Deere | 3Q20 Earnings Call | August 2
Slide 10: Construction & Forestry Industry Outlook
Construction & Forestry Industry Outlook NORTH AMERICAN GLOBAL FORESTRY CONSTRUCTION EQUIPMENT ~20% ~20-25% Source: Deere & Company forecast as of 21 August 2020 10 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 11: Worldwide Construction & Forestry Divisional Outlook
Worldwide Construction & Forestry Divisional Outlook NET SALES OPERATING MARGIN ~25% 10.8% ~5.0% $11,220 FY2019 FY2020 Fcst FY2019 FY2020 Fcst Source: Deere & Company forecast as of 21 August 2020 11 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 12: Worldwide Financial Services
Worldwide Financial Services Net Income - 3Q20 Results and Outlook ACTUAL 3Q20 FY2020 FORECAST $183 $539 $175 $510 3Q19 3Q20 FY2019 FY2020 Fcst Source: Deere & Company forecast as of 21 August 2020 12 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 13: Deere & Company Outlook
Deere & Company Outlook FY20 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* ~$2.25B 27-29% ~$2.8B *Equipment Operations Source: Deere & Company forecast as of 21 August 2020 13 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 14: Strategic Priorities
Strategic Priorities CES Analyst Day – January 2020 Smart Industrial Model 14 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 15: Appendix
Appendix 15 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 16: Other Financial Information
Other Financial Information Equipment Operations Fiscal 2020 ($ millions) 3Q20 Forecast COS (percent of Net Sales)* 74% ~77% SA&G* 18% ~7% Research and Development* 14% ~ 5% Capital Expenditures ~ $850 Pension/OPEB Expense ~ $80 Pension/OPEB Contributions ~ $830 *As reported (including Voluntary Sep
Slide 17: July 2020 Retail Sales and Dealer Inventories
July 2020 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 31% Less than the industry 2WD Tractors (40 < 100 PTO hp) 21% Flat 2WD Tractors (100+ PTO hp) 7% More than the industry 4WD Tractors 13% Less than the industr
Slide 18: July 2020 Retail Sales
July 2020 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Single digit Combines Double digits Retail Sales U.S. and Canada Deere* Selected Turf & Utility Equipment Single digit Construction & Forestry First-in-the-Dirt Double digits Settlements Double digits * Based on interna
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 access to low-cost and readily Committed to “A” Rating available short- and long-term funding mechanisms ➢ Reflects the strategic nature of our financial services oper
Slide 20: 4Q 2020 earnings call scheduled
Deere & Company’s 4Q 2020 earnings call is scheduled for 9:00 a.m. central time on Wednesday, 25 November 2020. 20 John Deere | 3Q20 Earnings Call | August 21, 2020
Slide 21: John Deere
@ JOHN DEERE