Agile in a Manufacturing Environment John Deere Domodedovo Agile in a Manufacturing Environment John Deere Orenburg Eurasian Parts Distribution Center

John Deere's 100 + year History in Russia Before we dive into the future opportunities for the region, I’d like to pause for a moment to reflect on the past. It’s not widely known, but John Deere actually has a long history in Russia. In fact, Deere sales of tillage implements date back 100 years or more. The picture you see here shows an early model John Deere tractor sold in Russia. From 1927 to 1930 John Deere sold 8,200 tractor units in Russia and by 1930 Russia represented nearly 10% of company sales. The C&F division also has significant tenure in the region. The forestry business, originally under the Timberjack brand and now John Deere has had a presence for over 30 years. More recently, the company opened an Ag & Turf sales branch in 2003, the Construction business entered the market with it’s first 2 dealers in January of 2009, and in August of 2010 the company announced the investment in the Manufacturing and Parts Center in Domodedovo which will be opening shortly. All these investments continue to build on the successful 100 year partnership in Russia. ~ 400 Deere employees 18 Agricultural dealer groups with network of 70 locations 6 Construction & Forestry dealer groups with network of 72 locations Indirectly supporting dealer employment of ~ 1300

Technological Eras in Agriculture 1921 Commercial hybrid corn 1996 Herbicide-tolerant and insect-resistance crops 1959 Applied to 47% of cropland by 75% of farms 1935 Hybrid demand exceeds supply 1994 Satellite guidance begins 2006 Precision farming 2012 Telematics 2003 68 M ha, half of the US cropland, sown to GM crops 1960 96% of corn acreage planted to hybrids 1920-40 Expanded use of mechanized power 1940-70 Commercial fertilizer use doubled New slide from JD FarmSight deck from http://share.deere.com/knowledge/isgcommunications/

The Pace of Change is Accelerating 1990 1995 2000 2005 2010 Today Electro-hydraulics Networked controllers Netscape Browser Bt Corn Rotor harvesting technology GPS Parallel Tracking Touch Screens Telematics Electrification Impact Cloud Computing AutoTrac The Pace of Change is Accelerating 1990 to Today

Technology Evolution in Agriculture Time past today future Precision Irrigation Coordination Enabled by Telematics Simplifying Decisions Sub-Inch Accuracy Precision Farming Section Control Technology Level Logistics Management Guidance Systems Automated Guidance Variable Rate Machine Productivity & Uptime New slide from JD FarmSight deck from http://share.deere.com/knowledge/isgcommunications/ Parallel Tracking Mapping Influence on Producer Business Results

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