Deere & Company (DE) Investor presentation summary

Cash management and capital allocation priorities

• Maintains a strong balance sheet to support an 'A' credit rating and access to low-cost funding.

• Prioritizes funding for operating and growth needs, including both organic and inorganic investments.

• Consistently raises dividends, targeting a 25-35% payout ratio of mid-cycle earnings.

• Deploys remaining free cash flow to shareholders through share repurchases.

Financial services portfolio and performance

• Gross administered portfolio reached $65.4 billion as of November 2025, with 82% in Ag & Turf and 18% in Construction & Forestry.

• Largest market exposure is in the United States (77%), followed by Canada (11%) and Europe (6%).

• Portfolio growth has been steady, with net income rising to $799 million in 2025.

• Write-offs as a percentage of the owned portfolio remain low, indicating effective risk management.

Credit quality and risk management

• Credit losses have increased due to a softening market but are showing signs of stabilization.

• Dealer reserves, data analytics, and a dedicated remarketing team help manage risks and losses.

• Reserve levels are capped between 0.5% and 3.0% of the outstanding portfolio.