On this page of StockholderLetter.com we present the 1/11/2023 shareholder letter from DEERE & CO — ticker symbol DE. Reading current and past DE letters to shareholders can bring important insights into the investment thesis.

 •  1/11/2023 Letter Continued (Full PDF)
 •  1/10/2024 DE Stockholder Letter
 •  1/10/2025 DE Stockholder Letter
 •  DE Benford's Law Stock Score = 98

DE 1/11/2023 Shareholder/Stockholder Letter Transcript:

2022
Annual Report

02
John Deere 2022 Annual Report
CEO Letter
John Deere extended its record of strong performance in 2022. The company
achieved outstanding    nancial results while overcoming major supplier challenges
and responding to healthy customer demand. Net sales and revenues, net income,
and SVA* were the highest in company history. Deere shareholders fared well, too,
realizing a total return on their investment of 17 percent at    scal year end.
Deere also enhanced its competitive position, adding customers throughout the
world. Demand for our precision technologies continued to move ahead. To give our
smart-industrial operating model more strength and de   nition, a series of exacting
metrics, known as Leap Ambitions, was introduced. They set aggressive goals for
unlocking value for our customers as well as producing strong    nancial and
sustainability outcomes for John Deere.
$52,577
NET SALES & REVENUES
$52.58
$44,024
$35,540
Chairman & CEO
BILLION
2022
2021
2020
$6,229
SHAREHOLDER
VALUE ADDED*
$6.23
BILLION
JOHN
MAY
$5,128
$1,679
2022
2021
2020
$7,131
NET INCOME
(attributable to Deere & Company)
$7.13
$5,963
$2,751
BILLION
2022
2021
2020
The amounts shown in the charts above represent millions of dollars.
* Shareholder Value Added (SVA), referred to throughout this report, is a non-GAAP    nancial measure.
See page 15, and related footnotes, for further details.
Unless indicated otherwise, all capitalized names of products and services are trademarks of Deere & Company.
On the cover:
In 2022 John Deere unveiled its    rst fully autonomous tractor for large-scale
production. The autonomous 8R tractor offers advanced technologies,
including six pairs of stereo cameras that provide 360-degree vision to see
objects in the    eld and determine distance.

John Deere 2022 Annual Report
CEO Letter
03
Chairman & CEO Letter
STRONG MARKETS,
SOUND STRATEGY
PACE RECORD YEAR
John Deere extended its record of strong
performance in 2022, achieving outstanding
   nancial results while overcoming major supplier
challenges and responding to vigorous demand for
our products.
Our achievements were many: We brought out
important new products with the latest technology
and advanced features, improved our competitive
position in much of the world, and made further
progress ensuring the success of our strategic
plan and business model. We made investments
that help our customers be more pro   table,
productive, and sustainable. We also launched a set
of challenging metrics to inspire superior customer,
   nancial, and sustainable outcomes.
From a    nancial standpoint, 2022 was a memorable
year. Net income totaled $7.13 billion versus $5.96
billion in the previous year. Net sales and revenues
increased 19 percent to $52.58 billion. Pro   tability
in relation to sales (operating pro   t/net sales) was
the best in modern times.
The investment community took note of our
success. Deere shareholders realized a total return
on their investment of 17 percent, compared with
a decline in the overall market. The quarterly
dividend rate on Deere stock was increased by 8
percent during the    scal year and roughly 10 million
shares, representing an expenditure of $3.6 billion,
were repurchased. (The dividend was increased by
an additional 6 percent in December.)

04
John Deere 2022 Annual Report
CEO Letter
India-built 5115M tractor is part of the updated 5M series of utility
tractors. These tractors offer tremendous versatility     from baling
to tillage to loader work     with connectivity included.
OPERATIONS MOVE AHEAD
Precision & Production Agriculture     our largest
business, accounting for almost half of our sales    
bene   ted from the success of new products such as
large tractors, sprayers, and combines. Customers
continued to adopt the latest in high-value precision
technologies, many of which include autonomous
capabilities. Results for Small Agriculture & Turf
re   ected positive consumer sentiment and the impact
of new products.
Construction & Forestry (C&F) operations set new
highs in sales and pro   t, aided by solid markets for
earthmoving, forestry, and roadbuilding equipment.
Helping the division were higher sales of backhoes,
utility and production loaders, large dump trucks,
and compact equipment.
Deere   s    nancial-services unit made a substantial
contribution to company earnings while    nancing
roughly half of the new equipment sold by our dealers.
Credit quality remained impressive, and the loan and
lease portfolio grew to more than $50 billion for
the    rst time.
NAVIGATING CHALLENGES
Our results were achieved in the face of persistent
supply-chain pressures and higher material costs.
Over the course of the year, many Deere factories
experienced slowdowns or disruptions due to parts
or component shortages. We are proud of the tireless
efforts of our employees to help manage the situation,
ramp up production, and get much-needed products
to our customers    farms and jobsites. As well, Deere
faced stiff headwinds related to higher costs for raw
materials and freight.
The XUV 835R Signature Series Gator is our
most comfortable and advanced three-passenger
crossover utility vehicle. The premium cab features
automotive-like controls, leather seats, touchscreen infotainment with Apple CarPlay and
Android Auto, and sliding back window. These
machines are available with a gas or diesel engine.
Z370R residential zero-turn
mower is the    rst electric
lithium-ion battery product from
John Deere. It offers reduced
maintenance, less noise, and
zero-emissions while mowing    
and performance similar to gaspowered models. (It is available
for order February 7, 2023.)

John Deere 2022 Annual Report
CEO Letter
05
The new GUSS (Global Unmanned Spray System) herbicide sprayer is the world   s    rst autonomous sprayer for orchards.
Its nine sensors precisely detect, target, and spot spray weeds throughout the growing season. Through a joint venture with GUSS
Automation, John Deere now offers growers of orchards, vineyards, and other high-value crops a lineup of autonomous sprayers.
Deere   s dealer channel continued to serve
customers while strengthening its technical
capabilities and making wide use of
digital tools. Remote diagnostic sessions
between customers and dealers increased
more than 60 percent and have more
than doubled in the last two years. Dealer
support, which helps keep customers up and
running and realize even more value from
their equipment, has taken on even more
importance as our products become more
technologically advanced.
OPERATING MODEL MAKING IMPACT
Again in 2022, Deere   s smart-industrial
operating model produced strong results.
Deere added customers, brought more
focus to its business portfolio, and made
further technological advances. Based in
large part on changes driven by the strategy,
the company has generated higher levels of
pro   t and pro   tability.
The operating model is organized by
production systems (   the way our
customers work   ), establishing a centralized
technology group, and putting more
emphasis on delivering value to customers
across the lifecycle of the product. The
strategy also stresses increasing speed
and accountability.
Deere continued to make investments
in support of its strategy. They included
acquiring a majority stake in an Austrian-
based leader in battery-electric technology
and entering a joint venture with a company
that makes semi-autonomous orchard and
vineyard sprayers. Deere also invested in
a handful of other    rms to strengthen its
technology stack.
We invested in our people, too. To ensure
that Deere remains a premier employer,
the company made enhancements
in compensation, bene   ts, and work
arrangements. Of   ce locations were opened
in Austin and Chicago as part of an effort to
attract a wider range of employee talent. On
the production side, collective-bargaining
agreements approved by the autoworkers
(UAW) and machinists (IAM) unions set a new
standard for wage roles in our industries.
AMBITIONS SHOWCASE GROWTH,
SUSTAINABILITY
During the year, a series of exacting metrics
was introduced to demonstrate what the
smart-industrial operating model can
deliver. The Leap Ambitions, as they are
known, are focused on creating value for
our customers. Perhaps most important,
they show Deere has ample room for
growth, identifying incremental value
creation of at least $150 billion.
The ambitions set aggressive goals for
   nancial performance and sustainability.
These include a 20 percent return on midcycle sales and 10 percent recurring revenue
by 2030 as well as a signi   cant reduction
in emissions from our operations and
products. Our focus on recurring revenue
is intended to enhance the value we deliver
to customers, support the adoption of
technology, and optimize equipment value
over its lifecycle. The ambitions also call
for increasing the number of connected
machines and engaged acres, enabling
customers to make data-driven decisions to
improve their pro   tability and sustainability.
In response to the ambitions    focus on
sustainability, Deere has accelerated efforts
to improve the ef   ciency and limit the
environmental impact of its products. To
reduce emissions in line with our goals, the
company is exploring ways to supplement
its traditional diesel-powered engines with
alternative propulsion systems such as
battery-electric and alternative fuels.
Our plans include having at least 20
battery-electric or hybrid-electric
construction and forestry machines on the
market by 2026 and offering a range of
electric options in turf-care and compacttractor products. Last year, our Wirtgen
roadbuilding unit introduced electric
tandem rollers and mini pavers. Deere also
unveiled concept models of battery-electric
mowers, utility vehicles, and small tractors,
and has plans to offer a battery-electric
residential zero-turn mower in 2023.



 1/11/2023 Letter Continued (Full PDF)