Performance That Endures

1. Performance That Endures

2. Sustainability • Many definitions • New term – old concept • Triple Bottom Line - economic, environmental, and social balance

3. John Deere Values • “I will never put my name on a plow that does not have in it the best that is in me.” • Integrity, Quality, Commitment

4. John Deere History – Worker Safety • 1901--Worker Compensation introduced 10 yrs ahead of State Laws • 1947--Corporate Industrial Safety Dept established • 1975—Safety program established in Total Quality Mngt. framework resulting in continuous improvement through 2002 • 1983—Off-the-Job Safety Program introduced • 1984—Ergonomics program formally introduced • 2000 – ZERO Safety Incident Goal established

5. John Deere History - Product Safety • 1938 Product Safety Committees Formed • 1940 PTO shields made standard on tractors and retrofit program established • 1963 Starting interlock for lawn & garden tractors • 1966 ROPS introduced • 1972 ROPS retrofit option provided for most post - 1960 tractors • 1984 Bypass Override Valve developed and introduced • 1990 Operator presence system for cotton pickers established • 1999 New Turn-signal modules introduced for lighting and marking tractors and implements

6. John Deere History - Environment • 1920 First cloth screen exhaust filters installed • 1936 First foundry with complete mould and core and finishing dept dust control system • 1949 First boiler emission control system • 1957 Deere adopts strict water effluent standards • 1962 First pollution prevention projects involving cyanide elimination installed. • 1967 First Corporate environmental policy established • 1973 Formal Energy Management program started • 1981 Pollution Prevention program installed • 1993 Chlorofluorocarbons eliminated as a refrigerant for all product A/C systems • 2000 Soybean used as base material for sheet molded panels

7. John Deere Today Minneapolis, MN Valley City, ND Burnsville, MN Edmonton, Alberta Fargo, ND Zweibruecken, Germany Woodstock, Ontario Filipstad, Sweden Langley, British Columbia Welland, Ontario Bruchsal, Germany Joensuu, Finland Rock Valley, IA Enschede, Netherlands Klemme, IA Des Moines, IA Exeter, England Horst, Netherlands Waterloo, IA Ottumwa, IA Gummersbach, Germany Dubuque, IA Stadtlohn, Germany Horicon, WI Springfield, MO Davenport, IA Mannheim, Germany Coffeyville, KS Moline, IL Jiamusi, China Greeneville, TN East Moline, IL Beijing, China Springfield, IL Paragould, AR Toano, VA Tianjin, China Redondo Beach, CA Piqua,OH Jeffersonville, IN Alpharetta, GA Raleigh, NC Augusta, GA Torreon, Mexico Monterrey, Mexico Pune, India Thibodaux, LA Saltillo, Mexico Madrid, Spain Santiago, Chile Richards Bay, South Africa Saran, France Catalao, Brazil Melbourne, Australia Nigel, South Africa Arc-les-Gray, France Santo Angelo, Brazil Horizontina, Brazil Tokoroa, New Zealand Rosario, Argentina *

8. 2001 Sales: $13.3 Billion Construction & Forestry 16% Agricultural 47% Other 6% Credit 11% Commercial & Consumer 20%

9. Sustainability Today • Agriculture - provide customers with tools to meet demands for less intensive, less intrusive farming • No till planting • Precision farming • Soybean based plastics

10. Sustainability Today • Forestry - provide products with less impact on forest during logging • Life cycle assessment – tree harvester • Recyclability analysis – feller/buncher • Operator training • “Walker”

12. Recognition • Crain’s Chicago Business - named John Deere lllinois’ most-trusted company; in a nation-wide survey, Deere beat 13 other prominent companies • Business Ethics magazine - named Deere one of its 100 Best Corporate Citizens for 2002, ranking the company 64th on its annual list • Manager of the Summit Total Social Impact Fund, a Cincinnati-based mutual fund, recently ranked Deere among the top five companies in the S&P 500 for its ethical behavior

13. John Deere’s Challenge • “Build a business as good as our products” –Bob Lane, CEO • Improve performance, but • “Performance that Endures”

14. Global Challenges • Machine recyclability – steel vs. plastic • Machine safety – ROPs in India • Facility location – brownfields in China • Rapid changes • Employee turnover

15. Integration with Key Business Processes • Business Conduct Guidelines • Environmental Policy • Environmental Management System • Auditing and evaluation • Standards and Guidance

16. Introducing Sustainability • Should the term “sustainability” be used? • Work within the processes & structures already in place. • Three Distinct Entry Points: • Long Range Planning • Environmental Management System • Supply Management

17. A Range of Approaches to Sustainable Development Introverts Extroverts Bottom-liners Top-liners Transformers Thrust Stay with the pack Take the high road Cost leadership Differentiation Growth Questions Should I do anything? How can I better align with stake- holders How can I get cost advantage? How can I capitalize on SD? How can I leverage SD to transform the organization? Action Wait and see; track the issues Strengthen communities and environmental protection Improve eco-efficiency of processes Create products and services with unique characteristics Leverage SD to better learn innovate, and manage for the future

18. Understand Your Reality • Understand your company impacts • Understand your customer impacts • Understand the forces that will shape the future for you and your customers • Identify your strengths

19. Final Thoughts • Focus on core values • Focus on your markets and customers • No guarantee • Technologies • Culture

20. Nothing Runs Like a Deere