Construction & Forestry Division Analyst Update

March 2014

Mike Mack
President, C&F Division

Safe Harbor Statement & Disclosures

This presentation and accompanying material include forward-looking comments and information concerning the companys plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that impact our businesses and customers. They also may include financial measures that are not in conformance with accounting principles generally accepted in the United States of America (GAAP). Words such as forecast, projection, outlook, prospects, expected, estimated, will, plan, anticipate, intend, believe, or other similar words or phrases often identify forward-looking statements. Actual results may differ materially from those projected in these forwardlooking statements based on a number of factors and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the companys most recent Form 8-K and periodic report filed with the U.S. Securities and Exchange Commission, and is incorporated by reference herein. Investors should refer to and consider the incorporated information on risks and uncertainties in addition to the information presented here. Investors should consider non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. The company, except as required by law, undertakes no obligation to update or revise its forward-looking statements whether as a result of new developments or otherwise. This presentation and accompanying materials are not an offer to sell or a solicitation of offers to buy any of the companys securities.

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Enterprise Strategy

Our Strategy

GLOBAL GROWTH OPERATIONS

Agricultural Equipment

Construction Equipment

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Our Strategy

COMPLEMENTARY OPERATIONS

Turf Equipment

Forestry Equipment

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Our Strategy

SUPPORTING OPERATIONS

Financial Services

Power Systems

Turf Equipment

Worldwide Parts Services

Intelligent Solutions Group

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Construction Market Conditions

Explanatory variable for equipment sales U.S. Construction Spending Investment

State & Local, Federal Gov't Infrastructure Nonresidential Structures
Billions of Real 2009 Dollars 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0

State & Local, Federal Gov't Structures Residential Structures

Sources: Actual - U.S. Bureau of Economic Analysis; Forecast - IHS Global Insight

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Housing Starts 1960 to 2015 Forecast

2.50 2.25 2.00 1.75 Millions of Units 1.50 1.25 1.00 0.75 0.50 0.25 0.00

Sources: Actual - Housing starts from the U.S. Census Bureau; Forecast - IHS Global Insight

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U.S. GDP Growth

Pessimistic GDP Growth
4% 3% 2% 1% 0% -1% -2% -3% -4%

GDP Growth

Bureau of Economic Analysis, IHS Global Insight October / November 2013 Sources: Actual - GDP from U.S. Bureau of Economic Analysis; Forecast IHS Global Insight

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GDP Growth

U.S./Canada Construction Equipment Industry The Shift to Rental

To manage uncertainty, contractors are increasingly renting equipment Dealer-owned rental fleets lead the trend
120,000 36% 40% 35% 27% 80,000 26% 60,000 16% 40,000 10% 20,000 9% 10% 5% 0% 30%

Rental, % of Industry Total Rental

Rental % of Industry

100,000

US/C CE Industry, Units

DORF IRC Industry Sales, units Non-Rental DORF IRC

25% 20% 15%

Source: Off-Highway Research

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U.S./Canada Construction Equipment Industry Sales and Cyclicality

120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

US/C Construction Industry Unit Sales R12

-67% 48 Mo

Source: AEM

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C&F in U.S. and Canada Feet on the Ground

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C&F Dealer Channel

Strong dealers who make the investments required to service large customer needs
1998 Owner Groups Dealer Locations Total Sales Equipment Sales Parts Sales Service Sales Total Assets Adjusted Equity $ 85 415 2014 41 427 Change - 52% + 3% +303% +293% +329% +343% +397% +534%

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Emissions Product Launches Investing in Final Tier 4 Technology

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John Deere Davenport Works Investing for Growth

Dramatic Factory Improvements
30% more capacity/output 25% faster cycle times More efficient layout Improved productivity Improved quality

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The Worlds Broadest Forestry Product Line Improving Our #1 Position

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Forestry Harvest Processes / Machine Systems

Cut-To-Length and Full-Tree systems: 80% of global sites

Delimb, Cut Length

Cut-To Length
Delimb, Cut Length

Full Tree South

Delimb, Cut Length

Full Tree North

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John Deere WorkSight Industry-Leading Technology Improves Uptime

Machine, Jobsite, and Uptime Optimization

Machine

Jobsite

Dealer

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Corporate Business Division Growing Our Large Customer Base

Single point of contact Listening and responding better than anyone else

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Production Class Equipment Expanding Our Big Iron Product Offerings

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Deere and Hitachi Relationship

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Relationship is stronger than everfocused on execution and growth

Deere-Hitachi Manufacturing Operations Expanding in Kernersville, North Carolina

Objectives
Increase capacity Reduce cost Improve flexibility
New Assembly & Warehouse North Expansion East Expansion

Paint

Engineering/Quality Audit

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Brazil just wouldnt be the same without a little green AND yellow.

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C&F in Brazil John Deere and Deere-Hitachi Operations

Two factories completed in September 2013 Located in Indaiatuba, Sao Paulo

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John Deere Brazil Building Backhoes and 4WD Loaders

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Deere-Hitachi Brazil Building Excavators

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Brazil Dealer Coverage Five Strong Channel Partners

MEGA Sao Paulo

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C&F in Latin America Significant Opportunities

Chile, Peru, Columbia & Mexico forecasting healthy GDP growth Significant infrastructure, utility, oil and gas investments John Deere is well-positioned
Full product line 29 dealers with 114 locations

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C&F in China Tianjin Construction Works

WL56 4WD Loader Shipping to China, Russia, North Africa and South America E240 Excavator Shipping to China and Russia

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C&F in India Ashok Leyland - John Deere Joint Venture

Backhoe specifically designed for worlds largest market

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C&F in Russia Eyes on the Horizon

Significant increases in infrastructure investment and development Forestry market
John Deere in leading position

Construction market
Leverage Deere Enterprise to enable CE entry Graders and backhoes lead penetration

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C&F Division Financial Results

C&F Division Financial Results

$M Net Sales Operating Profit* Incremental Margin

Q1 2014 $1,353 $94 ~45%

Q1 2013 $1,302 $71

Change +4% +32%

Q1 2014 Operating Profit* impacted by: + Production costs + Research and development expenses + Price realization - Production levels; Q1 receivables and inventory $265

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C&F Division Financial Forecast

Fiscal Year 2014 Forecast Net sales +10% No change from previous forecast
U.S. Economic Indicators GDP Growth*
(APR) (thousands) (APR)

2014 Forecast +2.7% 1,162 +1.6% +1.1%

Housing Starts

Non-Residential Spending Growth* Government Spending Growth*

(APR)

* Change from prior year in real dollars Source: Global Insight, Calendar year estimates January 2014 Deere & Company Forecast February 12, 2014 (previous forecast November 20, 2013)

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