John Deere had another strong year in 2012. Our

results reflected the sound execution of our business plans,

centered on global expansion and disciplined cost and asset

management. Among our achievements, we delivered our

highest-ever sales and income, made substantial investments

to expand our worldwide footprint, and continued an

aggressive launch of advanced new products. We also built

on our strong record as a responsible corporate citizen and

leading employer. As a result, the company remains well

positioned to earn solid profits even in a fragile global economy

and, longer term, to benefit from broad trends that we believe

hold great promise.

For fiscal 2012, Deere reported income of $3.1 billion, on

net sales and revenues of $36.2 billion. Both figures exceeded

previous highs set in 2011. Income was up 9 percent on a 13

percent increase in sales and revenues. Earnings per share

rose fully 15 percent, reflecting the impact of fewer shares

outstanding. The company has set annual income records

seven times since 2003. That means investing to capitalize on

powerful macroeconomic trends related to a growing, more

affluent global populationlike focus on operational excellence

and customer service. In addition, the company maintained

its strong financial condition. At year-end, Deere’s equipment

operations carried some $5 billion of cash and securities.

WHERE WE'VE

The story of John Deere, who developed

the first commercially successful,

selfscouring steel plow, closely parallels

the settlement and development of the

midwestern USA.

Deere was born in Rutland, Vermont,

on February 7, 1804, the third son of

William Rinold Deere and Sarah Yates

Deere. In 1805, the family moved to

Middlebury, Vermont, where William

engaged in merchant tailoring. In 1808,

he boarded a boat for England, in the

hopes of claiming an inheritance and

making a more comfortable life for his

family. He was never heard from again,

and is presumed to have died at sea.

Raised by a mother on a meager income,

John Deere’s education was probably

rudimentary and limited to the common

schools of Vermont. At the age of 17,

he apprenticed himself and learned the

trade of blacksmithing, which he carried

on at places in Vermont.

In 1836, facing depressed business

conditions in Vermont and with a young

family to care for, Deere traveled alone

to Grand Detour, Illinois, to make a fresh

start. Resourceful and hard working, his

skills as a blacksmith were immediately

in demand.

COME FROM

NET SALES & REVENUES

Our performance was led by the Agriculture &

Turf division (A&T), which had another banner

year. Deere’s largest division brought advanced

new products to market, broadened its customer

base, and reinforced its preeminent position in key

markets. A&T results were aided by positive farm

conditions and higher sales of large equipment,

particularly in the United States.

In other businesses, Construction & Forestry

(C&F) continued a turnaround with operating profit

climbing 21 percent on a sales increase of 19

percent. Division sales have risen well over two-fold

since 2009. C&F introduced advanced new products,

continued its expansion into new geographies and

gained market share in key product categories.

Deere’s financial services organization delivered solid

profits while providing competitive financing to our

equipment customers on an increasingly global scale.

Although net earnings declined slightly from 2011

record levels, the loan portfolio grew by about $4 billion.

Credit quality remained exceptionally strong, with the

provision for loss declining to a negligible amount.

Investors shared in our success of 2012.

FIRST JOHN DEERE Riding mower

FIRST JOHN DEERE harvester

FIRST JOHN DEERE Snowmobile

FIRST JOHN DEERE TRACTOR

FIRST JOHN DEERE PLOW

Recently introduced equipment includes a line of

innovative round balers, a fuller line of versatile

utility tractors, and a family of premium midsize

tractors. Also debuting were recreational-utility

vehicles that can reach a top speed of more

than 50 miles an hour. New construction-

equipment models were highlighted by the

company’s largest-ever articulated dump truck,

as well as backhoes, crawlers and excavators

offering increased levels of performance.

Many of our new products feature John Deere

engine technology that reduces emissions while

meeting customer requirements for power,

reliability and efficiency. Deere’s extensive

engine know-how, encompassing both design

and production, provides customers with an

integrated powertrain solution that optimizes the

performance of our equipment. Long acclaimed

for innovation, John Deere won futuristic honors

for its advanced products and technology.

Among them were three awards from a top farm

magazine and for remote diagnostics software.

John Deere 1804-1886

I WILL NEVER PUT MY NAME ON

A PRODUCT THAT DOES NOT HAVE

THE BEST THAT IS IN ME.

The biggest change that is expected to come out of

agricultural equipment innovations is the technology

that will help farmers improve overall efficiency and field

productivity, Barry nelson, John Deere media relations

manager, said in a statement.

Nelson recently made a statement in which he

described his outlook for farm machinery improvements

in 2013, and what could be next. There are three areas

that every customer should ask their dealer about to

make farm operations more efficient, Nelson said.

These areas include machine optimization, which

helps machines improve their capacity and productivity.

“For example, GPS and AutoTrac assisted steering

will reduce passes through the field, improve overall

fuel economy, save horsepower, and increase overall

comfort to the operator,” he said.

New diesel

Technology

Improved logistics operations are also expected to play

a major role in equipment development, with producers

taking control of growing fleets of tractors and operation

consolidation increasing the size of companies manifold.

Third, Nelson said, is telematics, which includes John

Deere’s JDLink technology.

JDLink Machine Monitoring gives farmers remote

access to their assets, ensuring machines run optimally

and go in for routine maintenance. To underscore the

importance of youth’s involvement in agriculture, 30

students were invited to attend the 2013 USDA Agriculture

Outlook Forum, thanks to award-winning essays.

According to a recent press release from the USDA,

the event afforded students the opportunity to hear from

leading government and industry voices about how they

could impact the future of farming and agriculture.

utility Gator

roundbaler

5eseries

walk behindmower

forageharvester

With 62 hp of muscle, a top speed of 53 MPH and Fox 2.0 Performance Series Shocks to keep things smooth, the all-new, all powerful RSX850i is a whole new species of Gator.

We took stronger parts, stronger conviction, and stronger customer focus to make our newest balers ‘stronger to the core.’

The new 5E Series Reimagined, redesigned, reborn... to work.

Our most exciting commercial walk-behind introduction to date: three different levels of walkbehinds. Hydrostatic models with twin loop controls.

New 7080 Series SPFH models feature a revolutionary new kernel processor that produces higher quality silage without slowing down your harvest, plus the smartest constituent measuring system in the industry.

Cash and cash equivalents

Receivables from unconsolidated affiliates

Trade accounts and notes receivable - net

Financing receivables - net

Financing receivables securitized - net

Other receivables

Equipment on operating leases - net

Inventories

Property and equipment - net

Investments in unconsolidated affiliates

Goodwill

Other intangible assets - net

Retirement benefits

Deferred income taxes

Other assets

Total Assets

$ 4,652.2

1,470.4

59.7

3,799.1

22,159.1

3,617.6

1,790.9

2,527.8

5,170.0

5,011.9

215.0

921.2

105.0

3,280.4

1,465.3

$ 56,265.8

$ 3,647.2

787.3

48.0

3,294.5

19,923.5

2,905.0

1,330.6

2,150.0

4,370.6

4,352.3

201.7

999.8

127.4

30.4

2,858.6 $

$48,207.4

Net income

Adjustments to reconcile net income to net cash

Provision for doubtful receivables

Provision for depreciation and amortization

Goodwill impairment charges

Share-based compensation expense

Undistributed earnings of unconsolidated affiliates

Provision (credit) for deferred income taxes

Changes in assets and liabilities

Trade, notes and financing receivables related to sales

Insurance receivables

Accounts payable and accrued expenses

Accrued income taxes payable/receivable

Net cash provided by operating activities

$ 2,807.8

13.5

914.9

69.0

11.1

168.0

808.9

300.1

1,730.5

1,287.0

1.2

495.3

266.0

$2,326.3

$ 1,874.3

106.4

914.8

27.2

71.2

2.2

175.0

1,095.0

1,052.7

1,057.7

22.1

154.1

337.5

$2,282.2

2013

2013

2012

2012

Assets

Cash From Operating Activites

2013

2013

2013

2012

2012

2012

Liabilities

Cash From Financing Activities

Cash From Financing Activities

Short-term borrowings

Short-term securitization borrowings

Payables to unconsolidated affiliates

Accounts payable and accrued expenses

Deferred income taxes

Long-term borrowings

Retirement benefits and other liabilities

Total liabilities

$ 6,392.5

3,574.8

135.2

8,988.9

164.4

22,453.1

7,694.9

$ 49,403.8

$ 6,852.3

2,777.4

117.7

7,804.8

168.3

16,959.9

6,712.1

$ 41,392.5

Increase (decrease) in total short-term borrowings

Proceeds from long-term borrowings

Payments of long-term borrowings

Proceeds from issuance of common stock

Repurchases of common stock

Dividends paid

Excess tax benefits from share-based compensation

Other

Net cash provided by (used for) financing activities

894.9

10,642.0

5,396.0

61.0

1,587.7

697.9

30.1

66.2

$ 3,880.2

756.0

2,621.1

3,675.7

129.1

358.8

483.5

43.5

41.4

$ 1,009.7

Collections of receivables

Proceeds from maturities and sales of marketable securities

Proceeds from sales of equipment on operating leases

Government grants related to property and equipment

Proceeds from sales of businesses, net of cash sold

Cost of receivables acquired

Purchases of marketable securities

Purchases of property and equipment

Cost of equipment on operating leases acquired

Acquisitions of businesses, net of cash acquired

Other

Net cash used for investing activities

13,064.9

240.3

799.5

99.3

30.2

15,139.0

922.2

1,319.2

801.8

45.3

43.2

$ 4,004.1

12,151.4

32.4

683.4

911.1

13,956.8

586.9

1,056.6

624.2

60.8

113.7

40.4

$ 2,620.7