INTEGRITY QUALITY COMMITMENT INNOVATION Industry Perspective Joanne Howard Challenges and Opportunities in Managing Agricultural Operations for a Low-Carbon Economy 18 July 2007

INTEGRITY QUALITY COMMITMENT INNOVATION 2 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

INTEGRITY QUALITY COMMITMENT INNOVATION 3 Mannheim, Germany Richards Bay, South Africa Pune, India Jiamusi, China Stadtlohn, Germany Gummersbach, Germany Horst, Netherlands Enschede, Netherlands Bruchsal, Germany Zweibruecken, Germany Arc-les-Gray, France Saran, France Madrid, Spain Catalao, Brazil Horizontina, Brazil Rosario, Argentina Saltillo, Mexico Monterrey, Mexico Torreon, Mexico Valley City, ND Fargo, ND Minneapolis, MN Dubuque, IA Horicon, 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, IA Klemme, IA Tokoroa, New Zealand Tianjin, China Orenburg, Russia Tampere, Finland John Deere Today Montenegro, Brazil Brisbane, Australia

INTEGRITY QUALITY COMMITMENT INNOVATION Net Sales & Revenues: $ Billion Commercial & Consumer 18% Agricultural 46% Credit 8% Construction & Forestry 26% Other 2% Investing nearly $2 million per day in research and development

INTEGRITY QUALITY COMMITMENT INNOVATION 5 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

INTEGRITY QUALITY COMMITMENT INNOVATION 6 We Contribute

INTEGRITY QUALITY COMMITMENT INNOVATION 7 Greenhouse Gas Accounting Protocols Consistency Company A’s ton of GHG = Company B’s ton of GHG

INTEGRITY QUALITY COMMITMENT INNOVATION 8 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

INTEGRITY QUALITY COMMITMENT INNOVATION 9 Annual GHG Inventory

INTEGRITY QUALITY COMMITMENT INNOVATION CO2 Tonnage Breakdown (FY2006 Data) Manufacturing: 89%

INTEGRITY QUALITY COMMITMENT INNOVATION 11 Enhanced External Communications 2006 Global Citizenship Report External Web Page

INTEGRITY QUALITY COMMITMENT INNOVATION 12 Voluntary Program Participation

INTEGRITY QUALITY COMMITMENT INNOVATION 13 John Deere & USCAP

INTEGRITY QUALITY COMMITMENT INNOVATION 14 Industry Perspective: We Contribute Standardization Uniform federal framework of climate legislation Uniform guidelines for GHG inventory and registry Credit for Early Action

INTEGRITY QUALITY COMMITMENT INNOVATION 15 We Solve

INTEGRITY QUALITY COMMITMENT INNOVATION 16 Fuel Efficient Diesel Engines John Deere Power Systems Performance optimized Tier 3 PowerTech Plus ™ engines providing industry-leading fuel economy, power, response

INTEGRITY QUALITY COMMITMENT INNOVATION Tractor: Set new record as most fuel- efficient row crop tractor ever tested in the Nebraska Test Lab

INTEGRITY QUALITY COMMITMENT INNOVATION 18 Use of Renewable Materials John Deere Power Systems 25 x ‘25 Renewable Fuels Champion Promoting quality standards, handling, distribution and use of biodiesel fuels

INTEGRITY QUALITY COMMITMENT INNOVATION 19 Use of Recycled Materials in Products

INTEGRITY QUALITY COMMITMENT INNOVATION 20 "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

INTEGRITY QUALITY COMMITMENT INNOVATION 21 Precision Farming Equipment John Deere Ag Management Solutions GreenStar AutoTrac iTECPro Multiple precision Ag applications Precision Ag Solutions for Growers Worldwide

INTEGRITY QUALITY COMMITMENT INNOVATION 22 Nutrient Application Equipment and Solutions John 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

INTEGRITY QUALITY COMMITMENT INNOVATION 23 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

INTEGRITY QUALITY COMMITMENT INNOVATION 24 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

INTEGRITY QUALITY COMMITMENT INNOVATION 25 Project Locations 17 April 2007 = Operating = In Construction = Planned (Approved) (75.2 MW) (228.5 MW) ( MW)

INTEGRITY QUALITY COMMITMENT INNOVATION 26 JD Wind 3

INTEGRITY QUALITY COMMITMENT INNOVATION 27 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

INTEGRITY QUALITY COMMITMENT INNOVATION 28 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

INTEGRITY QUALITY COMMITMENT INNOVATION 29 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

INTEGRITY QUALITY COMMITMENT INNOVATION 30 Questions? For further information: Joanne Howard