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Deere & Company | MEEA, Chicago January 14, 2014 2
John Deere Today
• Over 100 locations
• Operations in 35 countries
• Over 66,000 employees
• 2013 sales $37.7B
John Deere created his plow in 1837
Deere & Company | MEEA, Chicago January 14, 2014 3
INTEGRITY | QUALITY | COMMITMENT | INNOVATION
Deere & Company | MEEA, Chicago January 14, 2014 4
Our Strategy
GLOBAL GROWTH OPERATIONS
Agricultural Equipment Construction Equipment
Deere & Company | MEEA, Chicago January 14, 2014 5
Our Strategy
COMPLEMENTARY OPERATIONS
Turf Equipment Forestry Equipment
Deere & Company | MEEA, Chicago January 14, 2014 6
Our Strategy
Power Systems
Turf Equipment
Financial Services
Worldwide Parts Services Intelligent Solutions Group
SUPPORTING OPERATIONS
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Awards Recognition
2013 List of America’s Most Reputable Companies – Forbes.com Ranked 8th by Reputation Institute
List of World’s Most Ethical Companies – Ethisphere Institute 7th consecutive year
Top 50 Most Admired Companies – Fortune 5th consecutive year
2012 A Top 100 Global Innovator – Thomson Reuters
500 Most Innovative Users of Business Technology InformationWeek Ranked 2nd
Fortune 500 List, Fortune's ranking of largest corporations in United States Ranked 97th
Best Global Brands 2012 – Interbrand Ranked number 85 out of 100
Company founder John Deere inducted into the Association of Equipment Manufacturers Hall of Fame
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Committed to Those Linked to the Land
World Population Will Grow by 50% by 2050
Helping our customers to meet the world’s
dramatically increasing need for:
• Food
• Fuel
• Shelter
• Infrastructure
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2010 2011 2012
Fiscal Year
From 2011 to 2012, up 15.9%
Global Energy Cost
(>> $100M USD)
GHG Reduction = CO2 Reduction = Energy Reduction = Cost Reduction
Energy at John Deere
Deere & Company | MEEA, Chicago January 14, 2014 10
John Deere 2018 Eco-Efficiency Goals
Deere & Company | MEEA, Chicago January 14, 2014 11
John Deere – Energy and Environment
• Energy Efficiency:
• Grow the business, but grow EFFICIENTLY
• Low/No Cost: Treasure Hunts
• Support and utilize effective programs for energy efficiency and peak load reduction
• Take Cost out of our Products
Deere & Company | MEEA, Chicago January 14, 2014 12
Low Cost/No Cost Energy Treasure Hunts
Operations
Day to Day: Low or No
Cost
Procure-
ment Practices
Capital
Projects
Treasure Hunt Focus – Employee Engagement
• Multi-disciplinary approach
• Low Cost / No Cost Opportunities
• Off-Production / On-Production Time
• Drive Process and Behavioral Changes
Deere & Company | MEEA, Chicago January 14, 2014 13
John Deere Waterloo Works Lighting Project • Project Overview:
• 3 factories converted 4,000 Metal Halide fixtures to high-bay T8 fluorescent
• Fixture-mounted occupancy sensors, dimmable ballasts
• System savings 30-50%
Capital: John Deere Lighting
• Innovative Project Strategies:
• Dimming strategy: extends lamp life, improves safety, optimizes system energy use
• Wireless control system: programs and monitors light fixtures
Deere & Company | MEEA, Chicago January 14, 2014 14
John Deere Des Moines Works HVAC Upgrades
• Project Overview:
• Inefficiencies in HVAC and controls
• 4-year plan to study and upgrade
• Implementation of VRF* and large volume fans
Capital: HVAC Upgrades
* Variable Refrigerant Flow (VRF)
• Innovative Project Strategies:
• Comprehensive approach to HVAC needs (not 1:1 replacement)
Deere & Company | MEEA, Chicago January 14, 2014 15
John Deere Des Moines Works HVAC Upgrades
• Project Overview:
• Leak program
• Equipment and Control upgrades
Expense & Capital: Compressed Air Improvements
• Innovative Project Strategies:
• Small compressor at unique load
Deere & Company | MEEA, Chicago January 14, 2014 16
John Deere Des Moines Works HVAC Upgrades
• 1/2 of an additional factory and product*:
• 2,000 homes in the Midwest*:
These 3 Site Examples Previously Described are Approximately…
* Electricity
Deere & Company | MEEA, Chicago January 14, 2014 17
Energy Intensive Process
Electricity Used = 25,000 Homes – Melt: • 50% to 60% of energy consumed
• 1000 T/day, 250,000 T/year
Load Profile – 24 x 7 production
Highly Controllable Load – Demand Control
– Curtailment Customer
John Deere Foundry
Deere & Company | MEEA, Chicago January 14, 2014 18
Gray Iron – 65%
Ductile Iron – 35%
Axle Housing Transmission Housing Diff Case
Hitch Frame Main Frame Gudgeon
High-Volume Complex Castings
Deere & Company | MEEA, Chicago January 14, 2014 19
Central Cavity for a Mold
2012 Produced 2 million Cores
Foundry - Core Manufacturing
Deere & Company | MEEA, Chicago January 14, 2014 20
(Melt)
Pour
Mold Line
Core
Finishing
Overall Process
= for 1 month
2012-13 Energy Efficiency Improvements
Deere & Company | MEEA, Chicago January 14, 2014 21
Foundry Operations
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U.S. and Canada Factory Locations
IA, IL, WI: • 22,900 employees
• 21,500 retirees
• Supplier spend $5.6B/year
• 300+ dealerships
Deere & Company | MEEA, Chicago January 14, 2014 23
John Deere Des Moines Works HVAC Upgrades
• Project Rebates
• Interruptible/Curtailment
• Cost Effectiveness
• Energy Expert Support
• Economic Analysis
• Technical Consultation
• Leverage knowledge, consistency across John Deere sites
• Trade Ally Engagement
Utility Efficiency Program- Key Support Elements