Slides
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Opportunity | Foundation | Growth INVESTOR DAY BRAZIL 20 25
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WELCOME BEM-VINDOS
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This presentation and accompanying materials may include forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as âforecast,â âguidance,â âproject,â âtarget,â âoutlook,â âprospects,â âexpect,â âestimate,â âwill,â âgoal,â âplan,â âanticipate,â âintend,â âpredict,â âbelieve,â âlikely,â âfuture,â â could,ââmay,â 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 Companyâs 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 Companyâs businesses and customers. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on managementâs current beliefs, expectations and assumptions regarding the future of the Companyâs 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 Companyâs control causing actual results to differ materially from those projected in these forward-looking statements. Among these factors are risks related to the agricultural business cycle which can be unpredictable and affected by agriculture fundamentals, such as prices for commodities; the political and economic geographies in which we operate; international conflicts; adverse macroeconomic conditions impacting consumer practices, including demand for John Deere products; housing starts and supply, non-residential construction, and infrastructure investment; higher interest rates; higher provision for credit losses and write-offs; government policies relating to trade (e.g., increased and proposed tariffs announced by the U.S. government and potential retaliatory trade regulations); competitive markets; production schedules; the ability to execute business strategies; events that damage the companyâs reputation or brand (including legal proceedings brought against the company); dealer practices and their ability to manage inventory (including used inventory and rental fleets) and distribute John Deere products; changes in U.S. and international laws and regulations; and changes in climate. For a discussion of some of these risks and uncertainties see âItem 1A Risk Factorsâ 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 presentation and accompanying materials are based only on information currently available and speaks only as of the date on which it is made. Y oushould 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 Companyâs GAAP measures of performance and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Forward-Looking Statements
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Letâs start with an introduction to the last 25 years of evolution in Brazilian agriculture alongside John Deereâs journey in the region... From Soybeans to Sugarcane: Why Brazil Feeds the World | John Deere Investor Relations
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By leveraging 25 years of experience and innovation, John Deere is driving differentiated value and sustainable growth for our customers in Brazil OPPORTUNITY Why Brazil? FOUNDATION Deereâs Unique Position GROWTH Unlocking Value
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OPPORTUNITY Why Brazil? Cristiano Correia Vice President Production Systems Latin America Isabela Aranovich Manager Production Systems Latin America
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Brazil has become an âag superpowerâ providing opportunities for further growth 24% Global Trade 3rd Production CORN 52% Global Trade 1st Production SUGARCANE 30% Global Trade 3rd Production COTTON Source: USDA; Carlos Cogo Intelligence 1st Production 58% Global Trade SOYBEAN +20% +38%+46% Next 10y Growth: +50% 1st Exports 1st Exports 1st Exports 2nd Exports
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Growing global demand requires additional production Source: S&P Global; World Bank Corn +13% Soybeans +14% Sugar +8% â Population growth â Rising GDP per capita â Increasing biofuel demand 10y Growth Outlook (â24-â34) 582 597 620 665 679 710 721 732 747 735 772 774 826 877 282 308 316 331 339 347 359 369 363 366 389 415 439 471 167 169 170 170 174 173 172 172 175 177 178 179 187 192 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '29E '34E Corn Soybeans Sugar (million metric tons) Global Consumption
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Growing demand for renewable fuel in Brazil is driving increased corn ethanol production 0 10 20 30 40 50 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 Ethanol from Sugar Cane Ethanol from Corn (billion liters) Ethanol Production in Brazil 0 10 20 30 40 50 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 Ethanol Consumption in Brazil (billion liters) +40% Ethanol Consumption 2024-2034 â BLEND MANDATES â â FAVORABLE TAX POLICY â >90% NEW VEHICLES E100 COMPLIANT Corn Ethanol Production to Double 2024-2034 â GROWING CORN INDUSTRY â MATURE SUGARCANE (90+ YRS) â CARBON CREDIT PROGRAM +40% Ethanol Consumption 2024-2034 Source: USDA; Ministry of Mines & Energy ; S&P Global; UNICA; Bra zil MME Ten Year Energy Expansion Plan
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Sustainable Aviation Fuel provides additional upside to consumption estimates as low carbon fuel demand accelerates 3.0 24.6(billion liters) Global SAF Demand Forecast Source: S&P Global 2025 2034
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Brazilâs agricultural landscape Grains South â Soy, Corn, Wheat â Cover crop â Small farms <1k acres Cerrado â Soy, Corn, Cotton â Double crop â Large farms >5k acres Cerrado Center - South Grains South Center - South â Sugarcane â Perennial crop (5-7 yrs) â Large farms >5k acres
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Production growth is driven by expanding area through incorporating degraded, underutilized areas and double cropping practices +27% Grains area growth Next 10 years Public Public + Private untouchable area 66% 30% Agriculture 10% Planted Area 20% Livestock Area 2024 13% Planted Area 17% Livestock Area 2034 Conservation by Region 80% in Forest Area 35% in Cerrado Area 20% All Other Areas Within Legal Amazon Outside Legal Amazon Source: Carlos Cogo Intelligence; Embrapa Meio Ambiente
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Represent ~90% of Brazilâs grain production 297 MMT 170M ac 2035E 2000 2010 2025 64M ac 65 MMT 89M ac 125 MMT +3% CAGR 37% Corn 12% Other 51% Soy Corn & Soy Production ~60% of BR Corn ~50% of BR Soybeans Cerrado Source: Carlos Cogo Intelligence Area Production
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Production ~75% of BR Cotton 0.7 MMT 1.2 MMT +2% CAGR 4.1 MMT 6M ac 2035E 2000 2010 2025 2M ac 2M ac Source: Carlos Cogo Intelligence Cotton Cerrado Area Production Brazil stands as the leading exporter of cotton globally, while also ranking as the worldâs 3rd largest producer
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Sugarcane Replaced degraded pastureland to meet growing demand for sugar and ethanol 257 MMT 605 MMT +1% CAGR 690 MMT 21M ac 2035E 2000 2010 2025 12M ac 18M ac Source: Carlos Cogo Intelligence Area Production Production >90% of BR Sugarcane Center - South
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Our Customers
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Targeted customer outcomes Yield & Cost Efficiency Operational Productivity Real-Time Connectivity
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â 5,000acres â 10+ machines Efficiency yield Manage from anywhere â 20,000acres â 30+ machines Manage at scale and job quality â 1,800,000acres â 600+ machines Efficiency and scale Grain customers we serve Large Family Business X-Large Family Business XXL Corporation
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The majority of acres are managed by a small number of customers XX - Large +25k ac 5k-25k ac X - Large 1k-5k ac Large 11% 90% 17% 7% 34% 3% 38% 1% <1k ac Small/Mid 60% 96% 32% 3% 8% <1% 8% 56% 26% 2% 32% 31% 34% 11% TOTAL 87M 25k 19M 25k 34M 204k Cerrado Center - South Grains South CERRADO Area (ac) Producers CENTER SOUTH Area (ac) Producers GRAIN SOUTH Area (ac) Producers Source: Censo Agro 2017
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CUSTOMER CHALLENGES Narrow Window Between Crops Operational Complexity Insufficient Connectivity Mid-size <1k ac 8% Area Large 1k-5k ac 32% Area X-Large 5k-25 ac 34% Area XX-Large +25k ac 26% Area CERRADO Cerrado is predominantly large growers with unique challenges in grain production Source: Censo Agro 2017
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Double cropping practices provide productivity advantages⌠Yield & Cost Efficiency Real-Time Connectivity Operational Productivity Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Soy Corn Soy Cotton
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âŚBut must be executed within a short window of opportunity⌠Yield & Cost Efficiency Real-Time Connectivity Operational Productivity Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Soy Corn Soy Cotton
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Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Soybeans 2nd Corn -1% yield / day Yield & Cost Efficiency Real-Time Connectivity Operational Productivity Execute job steps with precision â Maximize yield â Reduce production cost Source: NĂłia Jr & Sentelhas (2019); SimĂŁo (2018); Fiorini (2018); Deere Agronomy Study 2nd Corn yield potential per planted date Aug âŚWhere timing is critical to maximize the second cropâŚ
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Yield & Cost Efficiency Real-Time Connectivity Operational ProductivityâŚAnd numerous passes for crop protection are required Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Soy â 8x Corn â 6x Soy â 8x Cotton â 27x 35x TOTAL PASSES 14x
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Average customer machine idle time OPPORTUNITY Improved logistics and uptime AM AC PA AP MT GO MA TO BA PI MS MG SP PR SC RS ES RJ CE SE AL PE PB RN RO RM Yield & Cost Efficiency Real-Time Connectivity Operational Productivity SLC AgrĂcola ⢠1.8M acres ⢠23 farms in 7 states ⢠Different planting windows +600 mi ~30% Source: Company website Extra large growers have unique and complex operational challenges
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Yield & Cost Efficiency Real-Time Connectivity Operational Productivity VALUE OF CONNECTIVITY â Manage farm operations... anytime, anywhere â Optimize logistics â Enhance productivity â Improve uptime & serviceability â Analyze trends, gain insights, & make data-driven decisions â Foundational for future technology ~70% of Brazil lacks reliable cell coverage High Quality Poor Signal Source: Carlos Cogo Intelligence; ANATEL Connectivity coverage Technology is foundational to unlocking value and job quality for customers
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Growing Demand Necessitates Higher Production â +60% T otal Grains Production â +40% Ethanol Production for Biofuels â +30% Grains Acreage Expansion Brazil growth over the next decade: Precision Solutions Address Production Challenges Source: USDA; Ministry of Mines & Energy ; S&P Global; UNICA; Carlos Cogo Intelligence; Bra zil MME Ten Year Energy Expansion Plan Precision solutions are required to meet growing demand in Brazil Challenge Double Cropping Size & Scale Complexity Insufficient Cell Coverage Opportunity Yield & Cost Efficiency Operational Productivity Real-Time Connectivity
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FOUNDATION Deereâs Unique Position Joaquin Fernandez Vice President Manufacturing South America Ag & Turf Antonio Carrere Vice President Marketing & Sales â Latin America
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Deereâs Foundation in Brazil
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25 years of strategic investments 2008: Campinas Parts Distribution Center 2014: Indaiatuba C&F Factory 1999: CatalĂŁo Factory (CAMECO Acquisition) 2008: Montenegro Factory 1999: Horizontina Factory (SLC Acquisition) 2012: Indaiatuba Regional Office 2024: Indaiatuba R&D Center
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8 FACTORIES 4 FACILITIES 1 R&D CENTER 12M ft2 TOTAL AREA HORIZONTINA Combines and Planters MONTENEGRO Tractors CATALĂO Sugar Cane Harvester, Sprayer CAMPINAS Parts Distribution Center CANOAS Sprayer (PLA) PIRACICABA Unimil, Sugarcane Parts INDAIATUBA C&F (Earthmoving & Forestry) Regional Office, R&D Center PORTO ALEGRE C&F (Wirtgen)
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â Combines â Planters â Front End Equipment HORIZONTINA â Sprayers â Sugarcane Harvesters CATALĂO MONTENEGRO â 5, 6, 7 , 8 Series Tractors CAMPINAS INDAIATUBA â Service Parts â Earthmoving â Forestry â EXCELLENT OPERATIONAL PERFORMANCE â COMPETITIVE PRODUCTION COSTS â READY TO SUPPORT TECH STACK ADOPTION Our manufacturing footprint is a strategic advantage
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Product Portfolio
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2004 6 9 12 1 In the beginning, our product portfolio was limited and focused on the singular soybean customer segment
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T oday, our robust product portfolio enables us to bring value to a wide range of customer segments 2025 9 17 6 42 9 9 12 1
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2008 5, 6, 7 Series T ractors 2013 5E Series T ractors 2015 8R Series T ractors 2020 6M Series T ractors 202 4 5E Narrow Cab Series T ractors 7M Series T ractors Models: 12 Max HP: 225 HP New Segments: Grains Sugarcane Livestock HVC 17 225 HP HVC (Citrus) 24 370 HP Grains (L-XXL Customers) 30 400 HP Grains (South) 42 400 HP HVC (Coffee) 42 400 HP Grains Sugarcane Localized tractor portfolio evolution More models, higher specs, expanded customer segments served PORTFOLIO GROWTH
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Preeminent Dealer Channel
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>275 Dealer Locations ď 2.7x 2004-2024 ď 2.8x Avg Dealer Revenue 2014-2024 11% CAGR 2014-2024 >50 Connected Solutions Centers â Providing exceptional support â Reducing downtime â Improving efficiency Dealers demonstrating growth and innovation 500k remote display access sessions in 2024
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Deep Local Knowledge World Class Capabilities ~7 ,000 Employees 3X Growth (â99-â25) Exceptional talent solidifies foundation
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Multiple decades of investments have led us to where we are today ď~2.0X TRACTOR MARKET SHARE 2009-2024 ď~1.5X COMBINE MARKET SHARE 2009-2024 ď~2.5X PLANTER MARKET SHARE 2009-2024 ď~2.0X SPRAYER MARKET SHARE 2009-2024 Positioned for success
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GROWTH Unlocking Value Cristiano Correia Vice President Production Systems Latin America Josh Jepsen Chief Financial Officer
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Deliver outstanding performance to Deere Unlock and deliver distinct value to customers Product Leadership Connectivity T ech Adoption Unlocking value via three strategic pillars Growth in Brazil
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Investing In T echnology & Product Design Developing solutions in BRAZIL for BRAZIL Expanding Manufacturing Footprint Localizing and enabling SEE & SPRAY production ~$100M CATALĂO FACTORY EXPANSION INVESTMENT Delivering New Value 2025 Agrishow LARGEST EVER new product introduction in Brazil 8R410, 9RX S5, S7 , & X9 Sustainability & Cost Savings 3100, 1200 Job Quality Logistics Productivity Creating new value through product leadership ~$25M R&D CENTER INVESTMENT SEE & SPRAY
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JDLINK BOOST >4,000 Units sold in last 6 months Connected Machines (thousands) Satellite solutions enable real -time data and operations management, unlocking the full value of Deereâs precision tech ecosystem Unlocking opportunity with connectivity John Deere Operations Center Unlocks real-time data availability today while enabling future capabilities tomorrow Engaged & Highly Engaged Acres (millions ) 2020 1H â25 2030 17 81 200 2020 1H â25 2030 27 68 100 25% >40% 10% Highly Engaged
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ADVANCED TECH >50% EXACT EMERGE PLANTING >50% EXACT APPLY + INC SPRAYING >80% COMBINE ADVISOR HARVESTING Take Rates (2024) +4,000 Precision Ag Essentials Units (Through 1H25) FOUNDATIONAL TECH System level solutions are driving increased adoption across our technology stack SENSE & ACT + AUTONOMOUS SOLUTIONS Autonomy See & Spray Harvest Automation â Lowers up front cost with SaaS model â Accelerates adoption across fleet â Aligns Deere and customer outcomes Retrofit Precision Upgrades
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Financial Impacts
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DRIVES Brazilâs unique market growth creates a win-win opportunity for customers and Deere CUSTOMER VALUE Size and scale ideal for connected solutions Double cropping accelerates payback periods Precision solutions enable further sustainable practices DEERE PERFORMANCE Market share growth from differentiated product value Higher margins supporting additional R&D investment Structural improvements with precision solutions
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$115 incremental profit per acre driven by John Deere solutions $851,000 total incremental value for a 7 ,400-acre farm REAL SAVINGS. REAL RESUL TS. REAL IMPACT. MODEL FARM DEERE SOLUTIONS VALUEš $43 per acre savings $72 per acre revenue â AutoTrac& AutoPath â Section Control â ExactEmerge â See & Spray Select â Harvest Settings Automation â John Deere Operations Center Mato Grosso 7 ,400 acres double crop operation soy 1st | corn 2nd Source: John Deere Sustainability Impact Report â Brazil 2025 1 All results are internal estimates, will vary, and have not been verified by a third party. Results are calculated based on data gathered from various industry sources and will vary based on the source, year, and region. 40kg CO2e savings per ton of crop produced Deereâs production system solutions drive differentiated economic and sustainable customer value
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STRUCTURAL IMPROVEMENTS (2013 â 2023) NET SALES & OROS Five -year averages 2005 -2009 2020 -20242010 -2014 2015 -2019 OROS â8.3x NET SALES â5.6x Growth Outlook: More than Industry Deereâs business performance has consistently grown over cycles as we execute on our strategy NET SALES: ~1.8x OP PROFIT: ~3.4x OROS: Double Digitsâ
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OPPORTUNITY Why Brazil? FOUNDATION Deereâs Unique Position GROWTH Unlocking Value DEMAND PRODUCTION PRECISION SOLUTIONS PRODUCT LEADERSHIP CONNECTIVITY TECH ADOPTION
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2030 COMMITMENTS Grow connected machines 2.5x Increase engaged acres 50% & highly engaged acres 150% Outpace industry revenue growth through -cycle Obrigado e atĂŠ mais!