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John DeereCommitted to Those Linked to the Land

Deere & CompanyApril 2011

| Deere & Company | April 2011

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 (16 February 2011). 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

Macro-economic Tailwinds 25

Foundational Success Factors 35

Global Markets and Opportunities 43

John Deere Financial Services 50

John Deere Power Systems 55

Farm Fundamentals 58

Market and Currency Volatility 67

Appendix 70

John Deere Strategy

|5 Deere & Company | April 2011

|

Why is the John Deere Strategy evolving?

– Global macro-trends present significant opportunities for John Deere

– Global population and income growth

– Global infrastructure needs

– New customer segments

– Technology advances

No longer “business as usual”

6 Deere & Company | April 2011

|

We will help our customers – who cultivate, harvest, transform, enrich or build upon the land – meet the world’s dramatically increasing need for food, fuel, shelter and infrastructure

In so doing, we are supporting a higher quality of life around the world


|

Sustainable SVA Growth is delivered by distinctively serving our customers, employees and investors

– In this way, we can extend and enhance our financial and operating achievements of recent years

– Our challenge: to capture anticipated tailwinds by attracting more customers to the John Deere Experience across our six key geographies (US-Canada, EU-27, Brazil, CIS/Russia, India, China) in a manner that meets local needs while leveraging our global scale


|

Integrated portfolio of businesses each with a vital and specific role

Global Growth Businesses

–Invest in global expansion for profitable growth by capitalizing on macro-trends

Complementary Businesses

–Defend and grow share, enhance SVA, strengthen the channel of the Global Growth Businesses

Supporting Businesses

–Strengthen and further differentiate our Global Growth and Complementary Businesses



Agricultural Equipment Solutions Construction Equipment Solutions

Global Growth Businesses


Turf Equipment Solutions Forestry Equipment Solutions

Complementary Businesses


John Deere Financial Services

John DeerePower Systems

Worldwide Parts Services

Supporting Businesses

IntelligentSolutions Group


*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.

Exceptional Operating Performance - Equipment Operations

27.7% OROA in 2010, despite weakness in key regions such as Europe, and key businesses, such as construction equipment

12%

20%

28%

2001

2002

2003

2004

20052006

20072008

2009

2009, adjusted*

2010

0%

5%

10%

15%

20%

25%

30%

% of Normal Volume

80%Low

100%Normal

120%High

12% OROA (SVA Neutral)

|

0

500

1,000

1,500

2,000

2,500

3,000

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

$ M

illio

ns

Sale of Trade Receivables to Credit

Adoption of SVA Model

Deere & Company | April 201114

Over $7 billion in Pension/OPEB contributions, 2001-2010

Net Cash Provided by Operating Activities - Equipment Operations

SVA Model: Higher Cash Flow, More Consistently


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

-1,400

-1,000

-600

-200

200

600

1,000

1,400

1,800

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

SVA (

$ m

illio

ns)

SVA Journey - Equipment Operations, 1991 - 2010

|

SVA Journey - Enterprise, 2002 – 2010

SVA in 2010 was $1.714 billion - the highest in company history


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

-600

-200

200

600

1,000

1,400

1,800

2002 2003 2004 2005 2006 2007 2008 2009 2010

SVA (

$ m

illio

ns)

|

Short-Term Incentive (STI) 2010 2011

Bonus Calculation Based on individual Division’s performance

Based on Enterpriseperformance

Metric Weighting Divisionalperformance


Aligned High-Performance Teamwork

Integral part of strategy, reinforced with compensation

2011 Enterprise Metric

Equipment Ops OROA 50%

Ag & Turf OROA 25%

C&F OROA 15%

Credit ROE 10%

2010 Divisional Metric

Equipment Operations:

A&T or C&F OROA 70%

Corporate Composite 30%

Credit Operations:

Credit ROE 30%

Corporate Composite 70%


STI: Short-Term Incentive – Bonus focuses on OROA/ROECovers most worldwide salaried employees

MTI: Mid-Term Incentive – Bonus driven by sustained SVA creationAbout 8,000 management employees eligible

LTI: Long-Term Incentive – Primarily stock options Top 830 employees eligible

Minimum stock holding requirements for senior management (~ top 125)

Aligned High-Performance Teamwork

Integral part of strategy, reinforced with compensation

Global Performance Management reinforces alignment

Base pay changes linked to achieving goals


Deep Customer Understanding (DCU) - Understanding our customers’ most important local needs, and translating these into winning products and services better than any competitor

Deliver Customer Value (DCV) - Profitably translating our customers’ needs into products and services at prices our customers are willing to pay

World-Class Distribution System - Enabling our customers around the world to participate in the unique John Deere Experience by developing world-class channels of dealers that are professional, profitable and sustainable businesses, oriented to the customer, aligned with John Deere and achieving market preeminence

Grow Extraordinary Global Talent - Enabling preeminent customer value and business results through extraordinary leaders and engaged employees delivering aligned high-performance teamwork globally

Critical to meeting our aspirations of realizing sustainable SVA growth through global expansion

Needed to serve a diverse set of global customers more effectively

|

Commitment to execute and monitor all initiatives critical to our success

Performance metrics

–Traditional financial measures based on what we are delivering today to our stakeholders

Health metrics

–Based on the company’s Success Factors, are the qualities, attributes and actions being introduced to ensure the sustainability of our performance over time



Performance Measures Metric Target

Sales Net Sales Growth Target $50B* (2018, at mid-cycle)

Profitability Return on Sales (Operating Margin) 12% (2014, at mid-cycle)

Asset Efficiency Asset Turns 2.5x (2018, at mid-cycle)

Health Measures Metric Target

Exceptional Operating Performance Quality % JDQPS certification

Disciplined SVA Growth Sales/SVA Mix by Geography % Non-US/Canada

Aligned High-Performance Teamwork Employee Engagement Employee Survey’s

Engagement Index

*Implies a CAGR of ~ 9% (2010 – 2018) vs. historical CAGR of 7-8%

|

Since 1837, the company has delivered innovative products of superior quality built on a tradition of commitment and integrity

–How we do business is critical to our continued success


|

What does this all mean to John Deere?

Sufficient “head room” for global growth in Agricultural Equipment Solutions and Construction Equipment Solutions

John Deere is well-positioned to create solutions that help our customers feed the world, grow alternative fuel stocks, and build major infrastructure

We need to maintain our strength in developed markets and grow in developing markets

Our current success factors (Exceptional Operating Performance, Disciplined SVA Growth, Aligned High Performance Teamwork) are foundational, and necessary but not sufficient, to meet our growth aspirations


|

The John Deere Strategy – In Summary

Accelerated emphasis on global growth –$50 B mid-cycle sales by 2018–>50% outside of U.S./Canada–Capitalize on increased global demand for food, shelter and infrastructure

Focus on improved profitability–12% mid-cycle margin by 2014

Continued adherence to OROA/SVA model–30% OROA at mid-cycle sales (12% at trough) with improved asset turns

Focus on two growth platforms–Global pre-eminence in agricultural-equipment solutions–Global construction-equipment operations (with presence in China)–Complementary/supporting businesses to help drive performance of global growth platforms

Revised metrics reflect strategic direction–“Performance” metrics align compensation to strategy–“Health” metrics introduced to monitor underlying factors (e.g., market share, quality) to ensure performance is sustainable


Macro-economic Tailwinds

Support John Deere’s Global Growth Businesses

|

Population and Income Growth

Most of population growth through 2050 in Asia and Africa• By 2050, world population will reach 9 billion, increasing from

6.3 billion today

• Aging population in North America, modest growth

• Shrinking and aging population in Europe

Large middle-class developing in China and India• 200 million households expected to join the middle class


|

Challenges Created by Population Growth

Feeding the world – agricultural output must double by 2050

• Gross output must increase @ 3.4% annually in next 10 years vs. 2.4% annual growth in past 10 years

• Natural resources under strain, especially water

Massive urbanization – migration from rural areas creates need for roads, power grids, water containment and distribution systems

• 2010 milestone: For first time, more than half the world population lives in cities

• 2050: More than 70 percent will live in cities


|

Sector

657Financial Institutions

621Construction

588Agriculture, Hunting, Forestry, Fishing

373Restaurants and Hotels

370Electricity, Gas, and Water

318Energy Mining and Quarrying

318Computer and Related Activities

Motor Vehicle and Motorcycle Sales, Repair, Maint. 218

Insurance 222

Processed Food

Educational Services

Radio, TV, and Communications Equipment 313

Real Estate & Dwellings 1,060

1,058Wholesale Trade

826

Other Business Activities 1,136

Medical, Dental, Veterinary, Other Health

762Transportation & Storage

Public Admin, Sanitary & Personal Srvs 1,324

692

Communications

Retail Trade except Motor Vehicle, and Motorcycle 543

583

231

3.2

2.9

2.1

3.2

2.9

3.4

2.9

2.8

2.4

2.9

3.6

2.6

2.8

3.1

2.9

3.5

4.5

3.7

2.4

2.3 182323

27

28283234

3536

38

3944

46525659

6670

80Agriculture, Hunting, Forestry, Fishing

Energy Mining and Quarrying

Construction

Processed Food

Electricity, Gas, and Water

Transportation & Storage

Wholesale Trade

Motor Vehicle and Motorcycle Sales, Repair, Maint.

Communications

Restaurants and Hotels

Financial Institutions

Public Admin, Sanitary & Personal Srvs

Radio, TV, and Communications Equipment

Educational Services

Insurance

Real Estate & Dwellings

Retail Trade except Motor Vehicle, and Motorcycle

Computer and Related Activities

Other Business Activities

Medical, Dental, Veterinary, Other Health

Share of growth from BRIIC1

PercentSector

Agriculture and Construction amongst the Top 10 industry sectors in the G-20 countries . . .

. . . Most of the growth in Agriculture and Construction between 2008-2020 will happen in the BRIIC countries

Real value-added 2005 USDNote: G20 countries account for 70% and 73% of agriculture and construction segments respectively.

Total global growth for agriculture is $840B and construction is $850B

1Brazil, Russia, India, Indonesia, China

Source: Global Insight World Industry Monitor

Absolute increase in real value added 2008-20, $ Billions

CAGR 2008-20 Percent

Strong Global Tailwinds in Ag & Construction; Most Growth from Developing Economies


|

Developing Economies Growing Faster

While developed economies have always accounted for a larger share of GDP . . .

10.0

22.934.6

1.3

12.0

28.1

1990

5.2

11.3

1970

46.6

3.8

2008

Real GDP1

$ Trillions

6.1

CAGR,1970-2008Percent

3.3

34.6 43.062.0

12.0

3.0

203920202008

65.5

115.3

53.3

22.546.6

Real GDP1

$ Trillions

4.9

CAGR,2008-2039Percent

... their growth will slow significantly, relative to that of developing economies

1 Real GDP (expenditure method) base year 2005

Developed countries include OECD. Developing countries include all developing markets (Regions as defined by Global Insight)SOURCE: Global Insight World Market Monitor

1.9x2.6x

1.9

Developing Developed



Dynamics of Food Demand

<$1.25per day

$1.25-2.50 per day

$2.50-10per day

>$10 per day

20% of world’s population(2/3rds experience hunger & malnutrition)

27% of world’s population(Most hunger problems solved at $2.50 threshold)

Services

Processed Products

Livestock Products

Commodities

Per Capita Income

Source: World Bank 2008


12

28

72

75

83

12

13

14

15

15

19

21

3

4

4

7

12

20

20

1

2

4

13

16

0 25 50 75 100 125 150 175

2004

2005

2006

2007

2008

2009

2010E

RMB (in billions)

Material Subsidy (basic subsidy for purchase of inputs)Grain Direct Subsidy (for growing encouraged crops)Seed Subsidy (for purchasing high-performing seed)Equipment Subsidy (for purchasing encouraged equipment)

15

17

31

52

103

127

Government Support of AgricultureChina

Source: China Ministry of Agriculture

140

|

(1) - 7.5% small farmers; 9.5% medium/large farmers

(2) - Tractors 6 years; Combines 8 years

(3) - Increases from 5.5% on 4/1/11 to 6.5% for small/medium farmers (<R$90 million annual revenue), and to 8.7% for large farmers (>R$90 million annual revenue)

Program Description Interest RateGrace Period Terms Expiration

MDA “More Food” National, <78 hp tractors 2% 3 yrs 10 yrsPerennialApproval

Pro-Tractor Sao Paulo state, <120 hp tractors 0% 2 yrs 5 yrs 12/31/11

Moderfrota National, equipment & capital goods 7.5%/9.5%(1) 1.5 yrs 6-8 yrs(2) 6/30/11

FINAME PSI National, equipment & capital goods 6.5%/8.7%(3) 2 yrs 10 yrs 12/31/11


• R$116 billion approved for 2010/2011 Agriculture and Livestock Plan

• R$100 billion targeted towards Agribusiness (large-scale operations)

• 8% higher than 2009/2010

• R$16 billion targeted towards family agriculture (small-scale operations)

• Government programs to support equipment purchases

Government Support of AgricultureBrazil


Global Construction and Infrastructure Needs

2,266

2,356

1,888

6,509

2008

2,998

3,555

3,361

9,915

2020

3.6%

Infrastructure is expected to be the fastest growing segment of construction

Estimated gross spending as a percent of 2008 global GDP

2.4

3.5

4.9

ResidentialNon-residentialInfrastructure

CAGR2008-2020Percent

WW Construction spendingGross output, $ 2008 Billions

Construction12%

Mining & Quarrying7% Ag, Hunting,

Forestry & Fishing7%

All Other74%

Note: Construction and Mines & Quarries account for ~5% and ~4% of 2008 value-added WW GDP, respectivelySource: IHS Global Insight, March 2009; Off Highway Research; AEM; CCMA; Yengst; Deere analysis


Construction spending 2020 absolute, Top 10 (Billions of 2008 $s)

2,101

1,439

607

579

409

359

353

289

288

273

China

U.S.

India

Japan

Spain

UK

France

Russia

Italy

Germany

Top 10 countries account for 68% of total U.S. & BRIC represent 47%China & U.S. alone account for 36% of total 2020 spending

Construction spending 2008-2020 change, Top 10 (Billions of 2008 $s)

Top 10 growers account for 78% of 2008-2020 growth China & U.S. represent 51% of total growth7 of top 10 growers are emerging countries

1,340

387

362

109

108

97

74

61

58

56

China

U.S.

India

Russia

Australia

Indonesia

Brazil

Saudi Arabia

Spain

Turkey

Infrastructure

Non-residential

Residential

All Construction

China Construction Market in 2020Forecasted to Surpass the USA in 2010

Infrastructure

Non-residential

Residential

All Construction

Source: IHS Global Insight, March 2009

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%

'00 Q

3Q

4'0

1 Q

1Q

2Q

3Q

4'0

2 Q

1Q

2Q

3Q

4'0

3 Q

1Q

2Q

3Q

4'0

4 Q

1Q

2Q

3Q

4'0

5 Q

1Q

2Q

3Q

4'0

6 Q

1Q

2Q

3Q

4'0

7 Q

1Q

2Q

3Q

4'0

8 Q

1Q

2Q

3Q

4'0

9 Q

1Q

2Q

3Q

4'1

0 Q

1Q

2Q

3Q

4'1

1 Q

1

Rec

eiva

ble

s &

Inve

nto

ry to

Pre

vious

12 M

onth

s Sal

es

Prior Year

Current Year

Trade Receivables and Net Sales

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Trade Receivables Net Sales

$M

illio

ns

1997 2010

• Avoided ~ $3.5 billion in working capital in 2010 vs. 1997

• Receivable level in 2010 consistent with 1997, with over 2x the sales


Deere Quarterly Dividends Declared* Q1 2003 – Q2 2011

$0.11

$0.14$0.16

$0.20$0.22

$0.25

$0.28

$0.30

$0.35

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

'03 Q

1Q

2Q

3Q

4'0

4 Q

1Q

2Q

3Q

4'0

5 Q

1Q

2Q

3Q

4'0

6 Q

1Q

2Q

3Q

4'0

7 Q

1Q

2Q

3Q

4'0

8 Q

1Q

2Q

3Q

4'0

9 Q

1Q

2Q

3Q

4'1

0 Q

1Q

2Q

3Q

4'1

1 Q

1Q

2

* Adjusted for 2 for 1 stock split on 26 November 2007


Productivity Improvement ~6% CAGR over 30 Years

• Deere’s net sales and revenues per employee have increased at a CAGR of ~ 6% since 1980

Net Sales and Revenues per Employee

$0

$100

$200

$300

$400

$500

$600

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010


Manufacturing Efficiencies – Waterloo, IAJourney to a 6-Day Drive Train

Pro

duct

ion D

ays

0

5

10

15

20

25

30

35

40

45

50

Prior to 2005 2005 2006 2007 2008

Relocation of 412 machinesEliminated 155 machines

Total evacuation of multi-story buildingsNew heat treat fully operationalSet-up improvementOn-site forging storageInsourcing of core processes

Machining departments based on part familiesArranged machines using cellular conceptsStarted evacuation of multi-story buildings

Run size optimization and set-up improvementDaily run size parametersOutsourcing non-core processes

-12 Days

-2 Days

-10 Days

-14 Days


Investment in New Products and Technologies

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

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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

R&D as Percent of Net Sales


Committed Bank Group Supports Credit Facility

• Average length of continuous relationship = ~28 Years

• $5.00 billion credit facility supporting commercial paper– $2.75 billion 49-month facility expiring in 2015

– $1.50 billion 37-month facility expiring in 2013– $750 million 364-day facility expiring in 2012

– Have not drawn on facility– $2.8 billion incremental capacity as of 31 January 2011

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total Facility CP Outstanding as of October 31

Credit Facility Size & Commercial Paper Outstanding

$ m

illio

ns

|42

Net Sales by Product CategoryEquipment Operations - Fiscal Year 2010

Agriculture & Turf Construction & Forestry


Construction

Forestry

CWP

Other

Large Ag

Small Ag

Turf

Other

Global Markets and Opportunities

|

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201020%

25%

30%

35%

40%

45%

50%


Growing Global Presence

• FY 2010 equipment net sales outside U.S. & Canada, while below historic FY 2008 levels, remain over 3x the level in FY 2000

$ M

illio

ns

Net Sales Outside U.S. and Canada

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


Net Sales by Major MarketsFiscal Years 2010, 2009, 2008, 2007

(in millions of dollars) 2010 2009%

Change 2008 2007

United States 13,026 11,568 +13% 13,166 12,241

Canada 1,767 1,454 +22% 1,902 1,588

Western Europe 3,360 3,427 -2% 4,610 3,889

Central Europe & CIS 746 749 -0% 1,874 1,025

Central & South America 2,623 1,787 +47% 2,577 1,565

Asia, Africa & Middle East 1,431 1,166 +23% 1,062 761

Asia Pacific, Australia & New Zealand 620 605 +3% 612 420

Total 23,573 20,756 +14% 25,803 21,489


Montenegro, Brazil Tractor Factory

Significant Commitments to Important MarketsBrazil

Horizontina, Brazil Combine Factory

Catalão, Brazil Sugarcane Harvester Factory

• Brazil converted ~14 million hectares from pasture land into crop land in last 10 years- Soybeans and sugar cane

• Deere projects ~20 million hectares will be brought into production in the next decade- Soybeans and corn

• Deere projects a ~5% CAGR in industry equipment sales over the next decade

|

• Russian Federation ~1.7 billion hectares of total land mass–Approximately 120-125 million hectares of arable land–Approximately 20-40 million hectares could come back into use

• Approximately 20 million hectares for production agriculture; remaining 20 million for other agricultural purposes, such as grazing

–Deere estimates “western-style” equipment used <25% of farmed hectares–> 70 dealer locations

• Additional ~60 million hectares of arable land in Belarus, Ukraine and Kazakhstan• Deere construction dealers and forestry distributors cover majority of Russia market

• Recent Announcements:• March 2011 – Plan to double the manufacturing space at the Domodedovo production facility near

Moscow and add new products such as log forwarders

• Plans also include establishing a leasing company in Russia for the sale of agriculture, construction and forestry machinery


Orenburg, Russia Seeding Assembly Factory

Significant Commitments to Important MarketsCIS

Kaluga Region, Land owned for future expansion

Domodedovo, Leased Assembly Facility

|

• Constant land available for Ag (~142 million hectares)

• Infrastructure investment projected to be ~9% of GDP by 2012 (~4.6% in 2008)• Annual industry tractor sales >400,000 units

-Launch of 5038D (38 hp) has significantly contributed to John Deere’s growth in India-5036C and 5041C tractors introduced in June 2010

-Designed and developed in India specifically for the India market-Targets the largest segment of the India tractor market (31 – 40 horsepower)-Export opportunities to select markets

• John Deere is the largest exporter of tractors from India

• Recent Announcements:

• January 2011 - ~ $100 million investment to build a new tractor factory and expand current tractor facility in Pune


Pune, India Technology CenterPune, India Tractor Factory Chennai, India Backhoe and 4-Wheel Drive Loader JV

Significant Commitments to Important MarketsIndia

Sirhind, India Combine Assembly Facility

|

Broad presence in market5 operations in place

Government support of agricultureCentral government spending on rural areas and farmers increased by 20% to 716 billion RMB in 2009The government raised minimum state purchasing prices for grain by 13-15% in 2009

Recent Announcements:December 2011 - ~ $50 million investment to build new factory in China to manufacture construction equipment for sale in China and for export to other markets


Significant Commitments to Important MarketsChina

Tianjin, China Drivetrain Factory

Xuzhou, China XCG Excavator JV

Tianjin, China Tractor Joint Venture

Jiamusi, ChinaCombine Factory

Ningbo, China Tractor Factory

John Deere Financial Services


Portfolio Composition by Market

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

John Deere Financial Services$25.1 Billion Owned Portfolio at 31 October 2010

Australia3%

Latin America6%

Europe7%

U.S.73%

Canada11%

Other1%

Revolving Credit9%

Leasing12%

Installment Financing

57%

Wholesale / Floorplan

21%

Portfolio Composition by Geography

Portfolio Composition by Product

Ag & Turf87%

C&F13%


281271 275 291

311 282

149

319

2003 2004 2005 2006 2007 2008 2009 2010

Net Income ($ Millions)

John Deere Capital CorporationProfitability and Growth

2003 2004 2005 2006 2007 2008 2009 2010

0.50%0.28%

0.16% 0.22% 0.29% 0.33%

0.70%

0.48%

Write-offs/Average Owned Portfolio

2003 2004 2005 2006 2007 2008 2009 2010

14.616.4

17.7 18.6 19.0 19.1 19.321.1

Administered Portfolio Growth ($ Billions)


John Deere Capital Corporation Retail Notes60+ Days Past Due vs. Write-offs

Agriculture & Turf1

• Extremely low write-offs; average ~5 bps for last 10 years

• Even in severe Ag market of the 1980s, losses were comparatively low

-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)

(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 - 2009 JDCC 10-K filings, 2010 Deere & Company 8-K filed with SEC 24 November 2010

-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)

Construction & Forestry• 2010 performance reflective of

market conditions; improving, though conditions remain challenging

|

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 Year 7 Year 8

Time Since Origination

Res

ale

Val

ue

as a

% o

f O

rig

inal

Lis

t Pr

ice

2009 2008 2007 2006 2005 2004


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 Year 7 Year 8

Time Since OriginationR

esal

e V

alue

as a

% o

f O

rigin

al L

ist

Pric

e

2009 2008 2007 2006 2005 2004

U.S. Resale Value vs. Loan Balance7830 Tractor and 9670 Combine

(1) Model 7810 was replaced with Model 7820 in 2004. In 2007 the 7830 series was introduced to the market. Loan balance assumes a 30% down payment on the highest list price financed for 5 years with annual payments at a rate of 6.3%.

(2) Model 9650 was replaced with Model 9660 in 2004. Model 9660 was subsequently replaced with Model 9670 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 6.3%.

Loan Balance

Model Year

7830 Tractor (1)

Source for equipment values: North American Equipment Dealers Association

Model Year

9670 Combine (2)

Loan Balance

John Deere Power Systems

Engine Emissions and Technology


Interim Tier 4 (IT4): • 50% Nitrogen Oxide (NOx) reduction• 90% Particulate Matter (PM) reduction• 100 hp emission break removed

Final Tier 4 (FT4):• 80% NOx reduction• 175 hp emission break removed

Same regulations from 75-750 hp

Tier 4 Engine Implementation

Final Tier 4

0

0.10

0.20

0.30

0.40

0.50

0 2.00 4.00 6.00 8.00 10.00 12.00

Tier 1

Tier 2

Tier 3

Interim Tier 4

NOx, g/kw-hr

PM

, g

/kw

-hr


Interim Tier 4Building on Proven Technology & Fuel Efficiency

Decision to use cooled exhaust gas recirculation (EGR) with diesel oxidation catalyst (DOC)/diesel particulate filter (DPF) driven by customer focus and needs analysis

• A simple solution– No additional fluids (Urea)– More operator friendly– Less complex to maintain

• A fuel efficient solution – optimal performance & fuel-choice flexibility– Tier 3/Stage IIIA cooled EGR John Deere 8320R rated the most fuel efficient tractor ever

reviewed at the Nebraska Test Lab– Operate efficiently with low-sulfur diesel and B5-B20 blends

• A field proven solution– Since 2005, John Deere cooled EGR engines have a proven record of reliability in on-the-farm

use• An integrated vehicle solution

– John Deere designs, manufactures and services the engine, drivetrain, hydraulics, cooling and electrical systems

– John Deere Precision Farming Technology delivers input and labor savings to increase yields• A fully supported solution

– John Deere dealers worldwide are highly trained to provide service and support as well as increase productivity / reliability / utilization of Deere machines

Farm Fundamentals

|

$0

$50

$100

$150

$200

$250

$300

$350

$400

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

$ B

illio

ns

Government Payments Total Cash Receipts


U.S. Farm Cash ReceiptsOperating Cash Receipts and Government Payments

• Total cash receipts remain at historically high levels

• Record levels expected for 2011

Source: 1998 – 2009: USDA 14 February 20112010F – 2011F: Deere & Company Forecast as of 16 February 2011


10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

$0

$500

$1,000

$1,500

$2,000

$2,5001970

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

2010F

2011F

$ B

illio

ns

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

Source: 1970 – 2009P: USDA 11 February 20112010F – 2011F: Deere & Company Forecast as of 16 February 2011

U.S. Farm Balance Sheet Strong


Corn, Soybeans, Wheat and Cotton PricesNearby Futures: 25 Mar 2006– 25 Mar 2011

Source: Chicago Board of Trade – Corn, Soybeans & Wheat; Intercontinental Exchange – Cotton

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

3/25/06 3/25/07 3/25/08 3/25/09 3/25/10 3/25/11

Do

llars

Per

Bu

sh

el

Corn

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

3/25/06 3/25/07 3/25/08 3/25/09 3/25/10 3/25/11

Doll

ars

per

Bu

shel

Soybeans

2.00

4.00

6.00

8.00

10.00

12.00

14.00

3/25/06 3/25/07 3/25/08 3/25/09 3/25/10 3/25/11

Do

llars

per

Bu

sh

el

Wheat

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2.00

2.25

3/25/06 3/25/07 3/25/08 3/25/09 3/25/10 3/25/11

Do

llars

per

Po

un

d

Cotton


Agricultural Growth – Energy2007 U.S. Energy Bill

• Significantly expanded mandatory levels of renewable fuels

0

5

10

15

20

25

30

35

40

2008 2010 2012 2014 2016 2018 2020 2022

Gal

lons

(bill

ions)

Corn-Based Starch Ethanol Advanced Biofuels

Source: Energy Independence and Security Act of 2007


Uses of U.S. Corn Crop 2009-2020

Source: USDA Agricultural Projections to 2020, February 2011

32.0%

32.5%

33.0%

33.5%

34.0%

34.5%

35.0%

35.5%

36.0%

36.5%

37.0%

0

5,000

10,000

15,000

20,000

25,000

Feed & residual Ethanol for fuel Food, Seed, & Industrial (Less Ethanol) ExportsEthanol for Fuel as % of Total Corn Usage

Bush

els

(mill

ions)


World Farm FundamentalsGlobal Stocks-To-Use Ratios

0%

10%

20%

30%

40%

50%

60%

70%1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009E

2010P

Corn

Wheat

Soybeans

Source: USDA - 10 March 2011

Cotton


Agricultural Growth – EnergyU.S. Ethanol

0

1,000

2,000

3,000

4,000

5,000

6,000

99/00 01/02 03/04 05/06 07/08 09/10F 11/12F 13/14F 15/16F

Bush

els

(m

illio

ns)

U.S. Corn Used In Ethanol

Source: Informa – February 2011


Daily Ethanol Margin Per Bushel Corn GrindBased on Nearby Futures Prices (Excl ITDA*)

*Interest, Tax, Depreciation and Amortization (ITDA) totals ~$0.50 and is often disregarded in margin calculations because it does not influence short term production decisionsSource: Informa – March 2011

($0.50)

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

3/2

4/0

7

6/2

4/0

7

9/2

4/0

7

12/2

4/0

7

3/2

4/0

8

6/2

4/0

8

9/2

4/0

8

12/2

4/0

8

3/2

4/0

9

6/2

4/0

9

9/2

4/0

9

12/2

4/0

9

3/2

4/1

0

6/2

4/1

0

9/2

4/1

0

12/2

4/1

0

3/2

4/1

1

Market and Currency Volatility

|

Volatility / Uncertainty Metrics


0

100

200

300

400

Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11

Sp

read

(b

ps)

'A' Industrial Index 3-Year Spread

2005-2006 Avg.: 482007-Aug 08 Avg.: 113Sep 08-Dec 09 Avg.: 2092010 Avg.: 732011 YTD Avg.: 6611 Mar 11: 67

0

25

50

75

100


Perc

en

tag

e P

oin

ts

VIX

0

300

600

900

1,200


Basis

Po

ints

GECC 5 Yr CDS

0

125

250

375

500


Sp

read

(b

ps)

TED Spread




|

Currency Movement Post Credit Crisis


FY 2007 FY 2008 FY 2009 FY 2010 FYTD 2011

Appendix


Enterprise SVA Reconciliation to GAAP

Equipment Operations 2002 2003 2004 2005 2006 2007 2008 2009 2010Net Sales 11,703 13,349 17,673 19,401 19,884 21,489 25,803 20,756 23,573 Average Identifiable Assets

With Inventories at LIFO 6,229 5,965 6,482 7,248 7,546 8,092 9,652 9,647 9,196 With Inventories at Standard Cost 7,147 6,925 7,477 8,312 8,634 9,205 10,812 10,950 10,494

Operating Profit 401 708 1,905 1,842 1,905 2,318 2,927 1,365 2,909 Percent of Net Sales 3.4% 5.3% 10.8% 9.5% 9.6% 10.8% 11.3% 6.6% 12.3%

Operating Return on AssetsWith Inventories at LIFO 6.4% 11.9% 29.4% 25.4% 25.2% 28.6% 30.3% 14.1% 31.6%With Inventories at Standard Cost 5.6% 10.2% 25.5% 22.2% 22.1% 25.2% 27.1% 12.5% 27.7%

SVA Cost of Assets (858) (831) (897) (998) (1,036) (1,094) (1,284) (1,301) (1,259) SVA (457) (123) 1,008 844 869 1,224 1,643 64 1,650

Financial ServicesOperating Profit 373 478 466 491 521 553 493 242 499 Change in Allowance for Doubtful Receivables 16 17 (8) (12) 15 17 (4) 68 (14) SVA Income 389 495 458 479 536 570 489 310 485 Average Equity Continuing Operations 2,019 2,079 2,163 2,110 2,424 2,524 2,355 2,732 3,064 Average Allowance for Doubtful Receivables 161 160 165 150 148 167 183 195 232 SVA Equity 2,180 2,239 2,328 2,260 2,572 2,691 2,538 2,927 3,296 SVA Income 389 495 458 479 536 570 489 310 485 less Cost of Equity (408) (420) (414) (410) (457) (480) (430) (458) (421) SVA Continuing Operations (19) 75 44 69 79 90 59 (148) 64 SVA Discontinued Operations 14 15 (11) 25 - - - - - Financial Services SVA (5) 90 33 94 79 90 59 (148) 64

Deere & Company - Enterprise SVA (462) (33) 1,041 938 948 1,314 1,702 (84) 1,714

(millions of dollars unless stated otherwise)


Equipment Ops SVA Reconciliation to GAAP

Equipment Operations 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000Net Sales 5,848 5,723 6,479 7,663 8,830 9,640 11,082 11,926 9,701 11,169 Average Identifiable Assets

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

Operating Profit 16 77 242 847 1,006 1,125 1,402 1,476 272 693 Percent of Net Sales 0.3% 1.3% 3.7% 11.1% 11.4% 11.7% 12.6% 12.4% 2.8% 6.2%

Operating Return on AssetsWith Inventories at LIFO 0.3% 1.3% 4.4% 15.3% 16.3% 17.3% 21.0% 19.3% 3.5% 8.6%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%

SVA Cost of Assets (804) (821) (773) (780) (856) (898) (924) (1,045) (1,049) (1,085) SVA (788) (744) (531) 67 150 227 477 431 (776) (392)

Equipment Operations 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Net Sales 11,077 11,703 13,349 17,673 19,401 19,884 21,489 25,803 20,756 23,573 Average Identifiable Assets

With Inventories at LIFO 8,743 6,229 5,965 6,482 7,248 7,546 8,092 9,652 9,647 9,196 With Inventories at Standard Cost 9,678 7,147 6,925 7,477 8,312 8,634 9,205 10,812 10,950 10,494

Operating Profit (46) 401 708 1,905 1,842 1,905 2,318 2,927 1,365 2,909 Percent of Net Sales -0.4% 3.4% 5.3% 10.8% 9.5% 9.6% 10.8% 11.3% 6.6% 12.3%

Operating Return on AssetsWith Inventories at LIFO -0.5% 6.4% 11.9% 29.4% 25.4% 25.2% 28.6% 30.3% 14.1% 31.6%With Inventories at Standard Cost -0.5% 5.6% 10.2% 25.5% 22.2% 22.1% 25.2% 27.1% 12.5% 27.7%

SVA Cost of Assets (1,162) (858) (831) (897) (998) (1,036) (1,094) (1,284) (1,301) (1,259) SVA (1,208) (457) (123) 1,008 844 869 1,224 1,643 64 1,650



2009 OROA Reconciliation to GAAPEquipment Operations

Equipment Operations2009, 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 AssetsWith Inventories at LIFO 14.1% 18.1%With Inventories at Standard Cost 12.5% 15.9%


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