integrity quality commitment innovation industry perspective joanne howard challenges and...
TRANSCRIPT
INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Industry Perspective
Joanne Howard
Challenges and Opportunities in Managing Agricultural Operationsfor a Low-Carbon Economy
18 July 2007
2INTEGRITY • QUALITY • COMMITMENT • INNOVATION
John Deere Today
#1 provider to agricultural and forestry businesses worldwide
#2 construction equipment provider in North America
Quality leader in lawn, grounds and turf care equipment
A leading worldwide manufacturer of off-highway diesel engines
One of the largest equipment finance companies in the U.S.
Key investor in alternative energy sources
Exciting new entities: John Deere Agri Services, Intelligent Mobile Equipment Technologies, Landscapes, Wind Energy
An American icon – founded in 1837 – growing outside the United States for more than 50 years
3INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Mannheim, Germany
Richards Bay, South Africa
Pune, India
Jiamusi, China
Stadtlohn, GermanyGummersbach, Germany
Horst, NetherlandsEnschede, Netherlands
Bruchsal, Germany
Zweibruecken, Germany
Arc-les-Gray, France
Saran, France
Madrid, Spain
Catalao, Brazil
Horizontina, Brazil
Rosario, Argentina
Saltillo, MexicoMonterrey, Mexico
Torreon, Mexico
Valley City, NDFargo, ND
Minneapolis, MN
Dubuque, IAHoricon, WI
Waterloo, IA
Moline, IL
East Moline, IL
Welland, Ontario
Edmonton, Alberta
Davenport, IA
Des Moines, IA
Langley, British Columbia
Ottumwa, IA
Springfield, MO
Coffeyville, KS
Thibodaux, LA
Fuquay-Varina, NC
Greeneville, TN
Augusta, GA
Kernersville, NC
Joensuu, Finland
Rock Valley, IAKlemme, IA
Tokoroa, New Zealand
Tianjin, China
Orenburg, Russia
Tampere, Finland
John Deere Today
Montenegro, Brazil
Brisbane, Australia
4INTEGRITY • QUALITY • COMMITMENT • INNOVATION
2006 Net Sales & Revenues: $22.148 Billion
Commercial & Consumer 18%
Agricultural 46%
Credit 8%Construction & Forestry 26%
Other 2%
Investing nearly $2 million per day in research and development
5INTEGRITY • QUALITY • COMMITMENT • INNOVATION
We Contribute…We Solve
Our Factories/Buildings• Direct / Indirect
Emissions
Customers/Dealers• Carbon sequestration:
agricultural, forestry, mowing opportunities
Product• Engine Emissions• Biofuel Usage
Research & Development• Renewable energy sources• Biomass Activities
7INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Greenhouse Gas Accounting Protocols
ConsistencyCompany A’s ton of GHG = Company B’s ton of GHG
8INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Deere’s Direct vs. Indirect Emissions
Largest Direct Processes• Foundry• Heat Treat• Painting• Powerhouses• Testing Operations
31% Direct 69% Indirect
Purchased Electricity & Steam
Deere’s GHG Emissions
9INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Annual GHG Inventory
2006 Percent By Region (Absolute Basis)
U.S.80%
Europe11%
Canada3%
Mexico4%
South America
1%
Asia / Pacific Rim3%
Year Energy Cost (US$)2003 $78,685,8802004 $87,130,0722005 $100,139,9302006 $111,983,6800
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2003 2004 2005 2006
To
ns
CO
2-E
qu
iv
Direct Indirect
10INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Manufacturing - Direct29%
Manufacturing - Indirect
60%
Offices - Owned 4%
Offices - Leased
1%
Fleet2%
Warehouses4%
2006 CO2 Tonnage Breakdown (FY2006 Data)
Manufacturing: 89%
11INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Enhanced External Communications
2006 Global Citizenship Report
External Web Page
14INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Industry Perspective: We Contribute
• Standardization• Uniform federal framework of climate legislation• Uniform guidelines for GHG inventory and registry
• Credit for Early Action
16INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Fuel Efficient Diesel EnginesJohn Deere Power Systems
Performance optimized Tier 3 PowerTech Plus™ engines providing industry-leading fuel economy, power, response
17INTEGRITY • QUALITY • COMMITMENT • INNOVATION
8430 Tractor: Set new record as most fuel-efficient row crop tractor ever tested in the Nebraska Test Lab
18INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Use of Renewable MaterialsJohn Deere Power Systems
25 x ‘25 Renewable Fuels Champion
Promoting quality standards, handling, distribution and use of biodiesel fuels
20INTEGRITY • QUALITY • COMMITMENT • INNOVATION
"The pneumatic down pressure feature on my 1770NT planter easily adjusts from the tractor cab and provides more down pressure options than you will ever find that you need." — Kenneth Wisehart, Shirley, Ind.
"The single-disc fertilizer openers provide efficient fertilizer placement with minimal soil disturbance." — Grant Troop, Quarryville, Pa.
Conservation Tillage Equipment
21INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Precision Farming EquipmentJohn Deere Ag Management Solutions
• GreenStar AutoTrac
• iTECPro
Multiple precision Ag applications
Precision Ag Solutions for Growers Worldwide
Precision Ag Solutions for Growers Worldwide
22INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Nutrient Application Equipment and SolutionsJohn Deere Agri Services
Turning information into insight and strategies that add value and strengthen businesses across the agri-food supply chain
• OptiGro
• Soil Information Systems
23INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Financial Services
John Deere Wind Energy • Provide advice, debt and equity
investment and the foundation for a successful project through:• Long-term, comprehensive project
management services• Turbine supply• A stream-lined project approval
process and technical support• Expertise in agriculture, financial
services and wind energy technology
24INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Wind Climate benefits
• A single turbine displaces 2700 tons of Carbon Dioxide annually
• Current fleet of installed turbines in US• Avoid 19 million CO2 tons annually • Avoids burning 16 million tons of coal each year or 50
million Barrels of Oil• Avoids consumption of Water in fossil fuel generation
• Avg. per person consumption for energy: 100,000 gallons of water
25INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Project Locations 17 April 2007
= Operating = In Construction = Planned (Approved) (75.2 MW) (228.5 MW) (233.15 MW)
27INTEGRITY • QUALITY • COMMITMENT • INNOVATION
One Farmer’s Sentiments on Wind Energy
"I think it's one of the greatest things that ever happened. It's good for my pocketbook. It's good for the environment.”
-- Chuck Goodman, retired farmer near Alta, Iowa; Has three wind turbines on his land
28INTEGRITY • QUALITY • COMMITMENT • INNOVATION
We Solve: Summary
• Fuel-efficient diesel engines• Use of renewable materials in products• Corn- and soy-based plastics for some
combine and tractor components• Conservation tillage equipment: planters, air
seeders, drills• Precision farming equipment: GreenStar
AutoTrac and iTEC Pro• Nutrient application equipment and solutions:
OptiGro and Soil Information System• Wind energy service provider
29INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Industry Perspective: We Solve• Technology Policies and Measures:
• Renewables - use / research / standards• Emission Offsets:
• Ensuring robust and reliable participation by agricultural and forestry sectors in climate policies• Offsets should include a variety of options, e.g. soil, plant, forest
sequestration, methane capture, renewable energy• Offsets must be verifiable• Development of a single, nationwide standard for verifying and
accounting for agriculture and forestry offsets is needed
30INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Questions?For further information:
Joanne Howard309 765 5152