Deere & Company Investor Relations Deere & Company | July 2013 Safe Harbor Statement & Disclosures...

John Deere Committed to Those Linked to the Land Investor Presentation

Deere & Company

July 2013

| Deere & Company | July 2013

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.

Guidance noted in the following slides was effective as of the company’s most

recent earnings release and conference call (15 May 2013). 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.

2

|

Table of Contents

Slide #

John Deere Strategy 4

Foundational Success Factors 9

Global Markets and Opportunities 18

John Deere Financial Services 38

John Deere Power Systems 44

Market Fundamentals 48

Appendix 54

Deere & Company | July 2013 3

John Deere Strategy

| 5 Deere & Company | July 2013

* SVA: Shareholder Value Added

*

*


* OROA: Operating Return on Operating Assets

** SVA: Shareholder Value Added

*** Excludes fiscal 2009 expenses related to goodwill impairment and voluntary employee-separation, for reconciliation to GAAP see “2009 OROA* Reconciliation to GAAP” slide in Appendix.

The John Deere Strategy Foundational Success Factors

Exceptional Operating Performance - Equipment Operations

− 29.4% OROA* in 2012

12%

20%

28%

2001

2002

2003

2004

2005 2006

2007 2008

2009

2009, adjusted***

2010

2011 2012

-5%

0%

5%

10%

15%

20%

25%

30%

35%

% of Normal Volume

80% Low

100% Normal

120% High

12% OROA (SVA** Neutral)

6


Exceptional Operating Performance - Equipment Operations

− Higher Net Cash Flow, More Consistently


0

500

1,000

1,500

2,000

2,500

3,000

3,500

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$ M

illions

Sale of Trade Receivables to Credit

Adoption of SVA* Model

Over $7.5 billion in Pension/OPEB contributions, 2001-2012

7


|

-1,600

-1,200

-800

-400

0

400

800

1,200

1,600

2,000

2,400

2,800

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Deere & Company | July 2013

SVA (

$ m

illions)


Note: For reconciliation of SVA to GAAP, please see “SVA* Reconciliation to GAAP” slide in Appendix

Disciplined SVA* Growth - Equipment Operations

− SVA Journey, 1991 - 2012

8


Adoption of SVA Model

Foundational Success Factors Building on Core Strengths That Have Guided Our Success


Asset Management Dramatic Reduction in Asset Intensity

20%

25%

30%

35%

40%

45%

50%

55%

60%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*

Prior Year

Current Year

Trade Receivables and Net Sales

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Trade Receivables Net Sales

$ M

illions

1998 2012

• Avoided ~ $7.5 billion in working capital in 2012 vs. 1998

• Receivable level in 2012 consistent with 1998, with almost 3x the sales

Quarterly Receivables & Inventory as a % of Previous 12 Months Sales

10

*Through 2nd quarter 2013


Productivity Improvement ~ 6% CAGR over 30 Years

• Deere’s net sales and revenues per employee have increased at a CAGR of ~ 6% over last 30 years

Net Sales and Revenues per Employee

$0

$100

$200

$300

$400

$500

$600

1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

$ T

housands

11


Investment in New Products and Technologies

R&D as Percent of Net Sales

Source: Deere & Company and competitor SEC filings

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Deere R&D $ Deere % Competitor A % Competitor B % Competitor C %

12

|

Net Sales by Product Category Equipment Operations - Fiscal Year 2012


Agriculture & Turf – $27.1B Construction & Forestry – $6.4B

Construction

Forestry

Commercial Worksite Products

Other

Large Ag

Small Ag

Turf

Other

13


Deere Use-of-Cash Priorities

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

14


Share Repurchase As Part of Publicly Announced Plans

15

* All shares adjusted for two-for-one stock split effective 26 November 2007 ** Rounded totals for each period – sum may not tie to cumulative cost of repurchases 2004-2Q2013

Cumulative cost of repurchases 2004-2Q2013: ~ $9.5 billion

Amount remaining on May 2008 authorization of $5 billion: ~ $2.2 billion

30 April 2013 period ended shares: ~ 388.0 million

2Q2013 average diluted shares: ~ 3.9 million

Shares repurchased 2004-2Q2013: ~ 164.0 million

Average repurchase price 2004-2Q2013: $57.70

Actual

Shares Repurchased*

(in millions)

Total Amount**

(in billions)

2004 5.9 $0.2

2005 27.7 $0.9

2006 34.0 $1.3

2007 25.7 $1.5

2008 21.2 $1.7

2009 0.0 $0.0

2010 5.2 $0.4

2011 20.8 $1.7

2012 20.2 $1.6

2013 YTD 3.3 $0.3


Deere Quarterly Dividends Declared* Q1 2003 – Q3 2013

* Adjusted for 2 for 1 stock split on 26 November 2007 ** See slide 5 for John Deere Strategy

16

$0.11

$0.14 $0.16

$0.20 $0.22

$0.25

$0.28 $0.30

$0.35

$0.41

$0.46

$0.51

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

'03 Q

1

Q2

Q3

Q4

'04 Q

1

Q2

Q3

Q4

'05 Q

1

Q2

Q3

Q4

'06 Q

1

Q2

Q3

Q4

'07 Q

1

Q2

Q3

Q4

'08 Q

1

Q2

Q3

Q4

'09 Q

1

Q2

Q3

Q4

'10 Q

1

Q2

Q3

Q4

'11 Q

1

Q2

Q3

Q4

'12 Q

1

Q2

Q3

Q4

'13 Q

1

Q2

Q3

Dividend raised 82% since launch of the revised John Deere Strategy in 2010**


Sources and Uses of Cash Fiscal 2004 - 2012 Equipment Operations

Source: Deere & Company SEC filings

17

= Source of Cash

= Use of Cash

(1) Other includes proceeds from maturities and sales of marketable securities and purchases of marketable securities and reconciliation for non-cash items including excess tax benefits from share-based compensation and the effect of exchange rates on cash and cash equivalents

$4,287

$19,326

$668

$6,530

$1,081

$101

$3,967

$7,720

$974

$0

$3,000

$6,000

$9,000

$12,000

$15,000

$18,000

$21,000

$24,000

$27,000

BeginningCash & CashEquivalents(10/31/03)

Cash FromOperations

Divestitures,net of

Acquisitions

CapitalExpenditures

Investment inFinancialServices

Net Change inDebt and

IntercompanyBalances

Dividends ShareRepurchase,

net ofCommon

StockIssuances

Other Ending Cash &Cash

Equivalents(10/31/12)

(1)

$ M

illions

$3,908 ~60% of cash from operations returned to shareholders

Global Markets and Opportunities


Growing Global Presence

• FY 2012 equipment net sales outside U.S. & Canada over 4x the level in FY 2000

20%

25%

30%

35%

40%

45%

50%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$ M

illions

Net Sales Outside U.S. and Canada

Net Sales Outside U.S. & Canada % of Total Net Sales

19

|

Global Growth Major Equipment Factory Investments


New Factories Major Expansions or Modernizations

Indaiatuba, Brazil C&F Division

• Backhoe Loaders • 4WD Loaders

Indaiatuba, Brazil (JV) C&F Division

• Excavators

Orenburg, Russia A&T Division

• Seeding Equipment • Tillage Equipment

Dewas, India A&T Division

• Tractors

Harbin, China A&T Division

• Combine Harvesters • Tractors • Sprayers • Irrigation Products

Tianjin (TEDA), China C&F Division

• 4WD Loaders • Excavators

Tianjin (TEDA), China John Deere Power Systems

• Engines

Des Moines, IA, USA A&T Division

• Spraying Equipment • Cotton Harvesting Equipment • Tillage Equipment • Seeding Equipment

Domodedovo, Russia A&T and C&F Division

• Tractors • Combine Harvesters

Pune, India A&T Division

• Engines • Transmissions • Tractors

Rosario, Argentina A&T Divison and

John Deere Power Systems • Engines • Tractors • Combines

Waterloo, IA, USA A&T Division

• Foundry

Waterloo, IA, USA A&T Division

• Ag Tractors

Davenport, IA, USA C&F Division

• Articulated Dump Trucks • 4WD Loaders • Motor Graders • Skidders • Wheeled Feller Bunchers

Moline, IL, USA Cylinder Division

• Hydraulic Cylinders

Valley City, ND, USA A&T Division

• Seeding Equipment • Tillage Equipment

Moline, IL, USA A&T Division

• Planting Equipment


Net Sales by Major Markets Equipment Operations

21

$13.8 $15.1

$13.0

$14.8

$17.4

$20.8

20

07

20

08

20

09

20

10

20

11

20

12

U.S. & Canada

9% CAGR

$3.9 $4.6

$3.4 $3.4

$4.4 $4.3

20

07

20

08

20

09

20

10

20

11

20

12

Western Europe

2% CAGR

$1.0

$1.9

$0.7 $0.7

$1.4 $1.7

20

07

20

08

20

09

20

10

20

11

20

12

Central Europe & CIS

11% CAGR

$1.6

$2.6 $1.8

$2.6

$3.6 $3.6

20

07

20

08

20

09

20

10

20

11

20

12

Central & South America 18% CAGR

$0.8 $1.1 $1.2 $1.4

$1.9 $2.1

20

07

20

08

20

09

20

10

20

11

20

12

Asia, Africa & Middle East

21% CAGR

$0.4 $0.6 $0.6 $0.6 $0.8 $1.0

20

07

20

08

20

09

20

10

20

11

20

12

Australia & New Zealand 20% CAGR

|

U.S. and Canada Factory 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

Illinois, USA • Combine Harvesters • Headers • Planting Equipment • Hydraulic Cylinders

North Dakota, USA • Air Seeding Equipment • Electronics

North Carolina, USA • Commercial Mowers • Golf & Turf Mowers • Utility Vehicles • Hydraulic Excavators

Alberta, Canada • Remanufactured Components

British Columbia, Canada • Log Loaders & Specialty Products

California, USA • Satellite Receivers

Kansas, USA • Power Transmission Equipment

Missouri, USA • Remanufactured Components

Louisiana, USA • Sugarcane Harvesting Equipment • Tractor Loaders • Scrapers • Cotton Strippers

Georgia, USA • Utility Tractors • Compact Utility Tractors

Tennessee, USA • Lawn Tractors

Wisconsin, USA • Lawn & Garden Equipment • Utility Vehicles • Golf & Turf Reel Mowers


U.S. and Canada Growth-Related Announcements

• November 2012 – $58 million investment at Moline, IL planter factory to enhance efficiency and quality

• June 2012 – $47 million investment at Moline, IL cylinder operations to expand manufacturing capacity

• March 2012 – Final Tier 4/Stage IV solution to combine proven EGR Interim Tier 4 platform with customized selective catalytic reduction (SCR) system

• March 2012 – $70 million investment at Waterloo, IA factory to expand production of large farm tractors by 10%

• January 2012 – Strategic agreement with MacDon to manufacture self-propelled windrowers

• December 2011 – $85 million in capital improvements at Des Moines, IA factory to expand production of self-propelled sprayers

23

2008-

2010

2010-

2012

2012-

2013

25%

15%

10%

Waterloo Works Capacity Expansion

2008 to 2013

Deere & Company Forecast as of 15 May 2013


EU 27 Factory Locations

Joensuu, Finland • Wheel Forwarders • Wheel Harvesters • Forestry Attachments

Bruchsal, Germany • Tractor, Harvesting & Forestry Cabs

Mannheim, Germany • Tractors

Zweibrücken, Germany • Combines & Forage Harvesters

Arc-les-Gray, France • Forage Equipment • Balers • Ag Loaders

Saran, France • Engines

Madrid, Spain • Components

Horst, The Netherlands • Spraying Equipment

Stadtlohn, Germany • Headers

Gummersbach, Germany • Walk-Behind Mowers

24


EU 27 Growth-Related Announcements

* Region 2: EU 27, CIS (including Russia), Mediterranean countries in Africa, and the Near and Middle East

25

• October 2012 – Grand opening of new Polish branch headquarters and training center

• Represents a $26 million investment in the region

• November 2011 – Awards received at Agritechnica 2011

• 7280R – “Tractor of the Year 2012”

• 6R tractor – “Machine of the Year”

• Five silver medals

• June 2011 – Largest new product introduction for Region 2*

• Over 100 new products

• 80% of large tractor and combine models new or updated

• Focus on Dealer of Tomorrow strategy

• May 2011 – John Deere and Kuhn Group sign strategic cooperation

• Provides large square balers into Region 2* in 2012

|

Brazil Factory Locations


São Paulo, Brazil (JV) • Components

Catalão, Brazil • Sugarcane Harvesters • Sprayers

Montenegro, Brazil • Tractors

Horizontina, Brazil • Combine Harvesters • Planters

Indaiatuba, Brazil • Backhoe Loaders • 4WD Loaders

Indaiatuba, Brazil (JV) • Excavators


26

Existing Under Construction


Brazil Growth-Related Announcements

• October 2011 – Two new factories in São Paulo to manufacture construction equipment

• Solely-owned Deere factory

• Backhoes and four-wheel-drive loaders

• Partner with Hitachi in second factory

• Excavators

• Expect production to begin in 2014

1 Carta da Anfavea, January 2012 and January 2013


• Agriculture portfolio and dealer expansion

• 50 new or updated products in 2010/2011

• Dealer locations roughly doubled since 2007

• Achieved about 6 points of tractor market share in 2-year period - CY 2011 and CY 20121

27

|

CIS Factory Locations


Orenburg, Russia • Seeding Equipment • Tillage Equipment

Domodedovo, Russia • Tractors • Combine Harvesters


CIS Growth-Related Announcements

• November 2011 – Orenburg, Russia

• Move existing operations to a new, larger facility

• Increase available manufacturing space by ~ 600 percent

• Expand product offering from four to fifteen models

• Production commenced January 2013

• March 2011 – Domodedovo, Russia

• Double manufacturing space at the factory

• Expand capacity for existing products

29

|

China Factory Locations


Ningbo, China • Tractors (28-70 hp) • Small Combine Harvesters • Hydraulic Cylinders

Tianjin (TEDA), China • Tractors (75-135 hp) • Transmissions

Jiamusi, China • Large Combine Harvesters • Corn Pickers • Cotton Pickers

Harbin, China • Combine Harvesters • Tractors (150+ hp) • Sprayers • Irrigation Products

Tianjin (TEDA), China • 4WD Loaders • Excavators

Tianjin (TEDA), China • Engines (50-220 hp)

30


China Growth-Related Announcements

Construction Equipment

Engines

Product Test (PV&V)

Office

Tianjin Economic-Technological Development Area (TEDA) Site

Tractors & Drivetrain

• May 2011 – New engine facility in Tianjin

• ~ $60 million investment

• Initial occupancy July 2012

• Production commenced April 2013

• May 2011 – New factory in Harbin

• ~ $80 million initial outlay

• Production commenced November 2012

• December 2010 – New construction equipment factory in Tianjin


• Initial occupancy July 2012

• Production commenced January 2013

31

|

India Factory Locations


Gummidipoondi, India (JV) • Side-Shift Backhoes • 4WD Loaders (planned production 2014)

Pune, India • Engines • Transmissions • Tractors (36-75 hp) • Electronics

Sirhind, India • Combine Harvesters

Dewas, India • Tractors (36-50 hp)


32

Existing Under Construction

|

• January 2011 – New tractor factory in Dewas and expand current tractor facility in Pune


• Expect production in Dewas to begin in 2013

• October 2010 – Ashok Leyland John Deere Construction Equipment Company inauguration

• Production of backhoes commenced in 2011

• Four-wheel-drive loader production expected in 2014

• September 2010 – New combine factory in Sirhind

• Production commenced February 2012

• John Deere has been the largest exporter of tractors from India for past 10 years


India Growth-Related Announcements


33

|

Other Regions Factory Locations


Kibbutz Beit Hashita, Israel • Cotton Picker Components

Rosario, Argentina • Engines • Tractors • Combines

Monterrey, Mexico • Rotary Cutters • Implements • Components

Ramos, Mexico • Ag Loaders • Compact Utility Tractor Loaders • Utility Tractor Cabs • Hydraulic Cylinders

Saltillo, Mexico • Ag Tractors • Transaxles

Torreon, Mexico • Axles • Engines • Electronics

Richards Bay, South Africa • Articulated Dump Trucks • Loaders

Tokoroa, New Zealand • Forestry Harvester Heads

|

Worldwide Parts Services Supporting the Global Growth of Our Equipment Operations


Highlights:

● Nagpur, India

Announced India Parts Distribution Center… target to open in 2H 2014

● Johannesburg, South Africa

New, larger Regional Distribution Center opened 4Q 2012

● Rosario, Argentina

New, larger Regional Distribution Center opened 4Q 2012

● Stockholm, Sweden

New, larger Regional Distribution Center serving C&F and A&T opened May 2012

● Bruchsal, Germany

E-PDC deconsolidation & packaging facility opened Nov 2011

Anchor Parts Distribution Centers

Regional Parts Distribution Centers

or Depots

Distribution Centers under

construction


John Deere FarmSightTM

36

Integrated wireless technology linking the equipment, managers, operators, dealers, and agricultural consultants to provide more productivity and efficiency to a farm or business.

● Machine Optimization

● Solutions that get the most out of machinery

● Use of automation and machine sensors

● Increased machine uptime, and higher levels of machine productivity, including the impact machines have on crop productivity & input efficiency

● Logistics Optimization

● Coordination of field activities and resources

● Enable fleet management decisions from web enabled devices

● Machine-to-machine communication for in-field logistics

● Ag Decision Support

● Easy data flow between machines and trusted advisors

● Platform for secure, trusted data sharing

● Enable proactive management decisions through insights


John Deere Water

37

Leveraging our leadership in global agriculture to provide innovative and efficient agricultural water management solutions to enable higher crop yields

● Innovative solutions ● A leading producer of drip tape/lines worldwide

● Fully integrated Field Connect™ soil sensing system

● Tailored flow/spacing solutions for unique crop/field types

● Integration of machinery and technology ● Field Connect™ provides agronomic decision support

which provides insight into key soil and crop requirements (plant, spray, harvest)

● Field Connect™ soil information designed to work in concert with Deere’s on-farm eco-system

● Enables increased yields and higher quality crops

● Improves water use efficiency and reduces grower input costs

● Partnering with our customers ● Supported by our dedicated channel partners

● Focused on optimizing farm operations and crop output

● Enabling good stewardship of the environment and water resources

http://www.deere.com/en_US/water/applications/convertingtodrip/articles_sugarcane1.html

John Deere Financial Services

|

John Deere Financial Services Supporting the Global Growth of Our Equipment Operations



39

• New JDF operations:

• Russia (2012)

• India (2012)

• Chile (2012)

• Thailand (2012)

• China (2011)

• Expanding EU-27 coverage to majority of countries

Owned Operations

Bank/Finance Company Partners

Retail programs through JDF not currently offered


Portfolio Composition by Market

John Deere Financial Services $31.9 Billion Owned Portfolio at 31 October 2012

Portfolio Composition by Geography

Portfolio Composition by Product

Information above includes all Deere lending activities worldwide. John Deere Capital Corporation is the largest lending operation of Deere & Company.

Ag & Turf 87%

C&F 13%

U.S. 72%

Canada 12%

Europe 7%

Latin America 6%

Australia 3%

40

Installment Financing

57%

Wholesale / Floorplan

23%

Leasing 12%

Revolving Credit 8%


John Deere Capital Corporation Profitability and Growth

41

383

275 291 311

282

149

319 364

2005 2006 2007 2008 2009 2010 2011 2012

Net Income ($ Millions)

0.16% 0.22%

0.29% 0.33%

0.70%

0.48%

0.12% 0.05%

2005 2006 2007 2008 2009 2010 2011 2012

Write-offs/Average Owned Portfolio

17.7 18.6 19.0 19.1 19.3 21.1

23.3

26.6

2005 2006 2007 2008 2009 2010 2011 2012

Administered Portfolio Growth ($ Billions)


John Deere Capital Corporation Retail Notes 60+ Days Past Due vs. Write-offs

Agriculture & Turf1

• Continued extremely low write-offs

• Average write-offs less than 5 bps over last 10 years

Construction & Forestry

• Extremely low write-offs in 2012

• Steady decline in write-offs since 2009

(1) 1982 – 1985 includes Construction; 1986 - 1994 includes Lawn & Grounds Care; beginning in 2009 includes both Ag and Turf equipment; As % of Owned Losses After Dealer Reserve Charges

Source: 1982 – 1994 internal reporting, 1995 - 2011 JDCC 10-K filings, 2012 internal reporting

42

-0.05%

0.45%

0.95%

1.45%

1.95%

2.45%

2.95%

3.45%

3.95%

'83 '86 '89 '92 '95 '98 '01 '04 '07 '10

Net Write-offs (Ag) Installments 60+DPD (Ag)

-0.05%

0.45%

0.95%

1.45%

1.95%

2.45%

2.95%

3.45%

3.95%

'95 '98 '01 '04 '07 '10

Net Write-offs (C&F) Installments 60+DPD (C&F)

|

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Resale

Valu

e a

s a

% o

f O

rigin

al Lis

t Price

Time Since Origination

2011 2010 2009 2008 2007 2006

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Resale

Valu

e a

s a

% o

f O

rigin

al Lis

t Price

Time Since Origination

2011 2010 2009 2008 2007 2006


U.S. Resale Value vs. Loan Balance 7230R Tractor and S660 Combine

(1) In 2011, the 7230R was introduced and replaced the 7830 series. In 2007, the 7830 series was introduced to the market replacing the 7820. Loan balance assumes a 30% down payment on the highest list price financed for 5 years with annual payments at a rate of 6.50%.

(2) Model S660 replaced model 9670 in 2012. Model 9670 replaced Model 9660 in 2006. Loan balance assumes a 30% down payment on the highest list price financed for 5 years with annual payments at a rate of 6.50%.

Source for equipment values: North American Equipment Dealers Association – wholesale prices

7230R Tractor (1)

43

Loan Balance

Model Year Model Year

Loan Balance

S660 Combine (2)

John Deere Power Systems Engine Emissions and Technology

|

Engine Emissions Interim Tier 4


Successful Transition

• Integrated vehicle solution

• Meeting customer performance and reliability requirements

• Nearly 60 applications launched*

• More than 40,000 engines in the field with >15 million customer hours*

• Warranty claims on 9.0L engine 33% lower compared to Tier 3

• Fuel economy 1-5% better than competitive equipment on tractors with 9.0L engine**

• * As of 31 October 2012

•** Per Nebraska Tractor Test Laboratory results

|

Engine Emissions Final Tier 4


• Challenge to absorb costs of continuing new emissions technologies

• SCR introduces packaging and other new challenges

• DEF freezing can be a concern in colder climates

• Shorter implementation horizon than iT4

• More applications to transition to FT4 than past programs

• Maintain Tier 2 and Tier 3 solutions for global markets

iT4 success gives confidence in our ability to meet FT4 challenges

|

Engine Emissions Worldwide Emissions Regulations


Stage II

Stage IIIA/Tier 3

Stage IIIB/Interim Tier 4

None

2013 Emissions Regulations

* Includes some non-EU27 countries that follow EU27 emissions regulations

U.S. and Canada Transition to Stage IV/Final Tier 4 • > 175 hp: Jan 2014 • < 175 hp: Jan 2015

EU27* Transition to Stage IV/Final Tier 4 • > 175 hp: Jan 2014 • < 175 hp: Oct 2014

Russia Proposed transition to Stage IIIA Jan 2014

China Proposed transition to Stage IIIA Jan 2015

Brazil Proposed transition to Stage IIIA: • Construction Equipment: Jan 2015 • Ag Equipment: Jan 2017

India No set date to transition from Stage IIIA

Market Fundamentals


U.S. Farm Cash Receipts

49

Source: 1998 – 2011: USDA 11 February 2013 2012F – 2013F: Deere & Company Forecast as of 15 May 2013

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F 2013F

$ B

illions

Government Payments Total Cash Receipts

Total cash receipts remain at historically high levels


U.S. Farm Balance Sheet Strong

Source: 1970 – 2011: USDA 11 February 2013 2012F – 2013F: Deere & Company Forecast as of 15 May 2013

50

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,0001970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012F

2013F

$ B

illions

Farm Debt Farm Equity Debt to Equity Ratio (%) Debt to Asset Ratio (%)

|

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012E

2013P

World Farm Fundamentals Global Stocks-To-Use Ratios

Source: USDA - 11 July 2013


Cotton

Wheat

Corn

Soybeans


U.S. Housing Starts

52

Source: 1960 – 2011: U.S. Census Bureau December 2012 2012F – 2013F: Deere & Company Forecast as of 15 May 2013

0.000

0.250

0.500

0.750

1.000

1.250

1.500

1.750

2.000

2.250

2.500

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012F

2013F

Housing Starts (Millions of Units)

Multi-Family Housing Starts

Single-Family Housing Starts


U.S. Construction Spending

53

Source: 1995 – 2011: U.S. Bureau of Economic Analysis December 2012 2012F – 2013F: Deere & Company Forecast as of 15 May 2013

-160%

-150%

-140%

-130%

-120%

-110%

-100%

-90%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,3001995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012F

2013F

% T

ota

l Constru

ctio

n S

pend

Billions, 2005 C

hain

ed $

’s

U.S. Construction Spending (Billions, 2005 Chained $’s)

Residential Investment in Structures

Nonresidential Investment in Structures

Government Investment in Structures

Government Infrastructure Investment

Appendix


2009 OROA* Reconciliation to GAAP Equipment Operations

Equipment Operations

2009, as

Reported

Exclude Goodwill

Impairment &

Voluntary Employee-

Separation

2009, as

Adjusted

Net Sales 20,756 20,756

Average Identifiable Assets

With Inventories at LIFO 9,647 9,647

With Inventories at Standard Cost 10,950 10,950

Operating Profit 1,365 380 1,745

Percent of Net Sales 6.6% 8.4%

Operating Return on Assets

With Inventories at LIFO 14.1% 18.1%

With Inventories at Standard Cost 12.5% 15.9%

(millions of dollars unless stated otherwise)

55

* OROA: Operating Return on Operating Assets


SVA* Reconciliation to GAAP Equipment Operations

Equipment Operations 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Net Sales 5,848 5,723 6,479 7,663 8,830 9,640 11,082 11,926 9,701 11,169 11,077


With Inventories at LIFO 5,585 5,765 5,449 5,551 6,187 6,502 6,682 7,672 7,724 8,069 8,743

With Inventories at Standard Cost 6,702 6,846 6,442 6,494 7,131 7,488 7,703 8,711 8,739 9,039 9,678

Operating Profit 16 77 242 847 1,006 1,125 1,402 1,476 272 693 (46)

Percent of Net Sales 0.3% 1.3% 3.7% 11.1% 11.4% 11.7% 12.6% 12.4% 2.8% 6.2% -0.4%


With Inventories at LIFO 0.3% 1.3% 4.4% 15.3% 16.3% 17.3% 21.0% 19.3% 3.5% 8.6% -0.5%

With Inventories at Standard Cost 0.2% 1.1% 3.8% 13.0% 14.1% 15.0% 18.2% 16.9% 3.1% 7.7% -0.5%

SVA Cost of Assets (804) (821) (773) (780) (856) (898) (924) (1,045) (1,049) (1,085) (1,162)

SVA (788) (744) (531) 67 150 227 477 431 (776) (392) (1,208)

Equipment Operations 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Net Sales 11,703 13,349 17,673 19,401 19,884 21,489 25,803 20,756 23,573 29,466 33,501


With Inventories at LIFO 6,229 5,965 6,482 7,248 7,546 8,092 9,652 9,647 9,196 11,516 13,594

With Inventories at Standard Cost 7,147 6,925 7,477 8,312 8,634 9,205 10,812 10,950 10,494 12,875 14,965

Operating Profit 401 708 1,905 1,842 1,905 2,318 2,927 1,365 2,909 3,839 4,397

Percent of Net Sales 3.4% 5.3% 10.8% 9.5% 9.6% 10.8% 11.3% 6.6% 12.3% 13.0% 13.1%


With Inventories at LIFO 6.4% 11.9% 29.4% 25.4% 25.2% 28.6% 30.3% 14.1% 31.6% 33.3% 32.3%

With Inventories at Standard Cost 5.6% 10.2% 25.5% 22.2% 22.1% 25.2% 27.1% 12.5% 27.7% 29.8% 29.4%

SVA Cost of Assets (858) (831) (897) (998) (1,036) (1,094) (1,284) (1,301) (1,259) (1,545) (1,795)

SVA (457) (123) 1,008 844 869 1,224 1,643 64 1,650 2,294 2,602

(millions of dollars unless stated otherwise)

56


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