8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report: November 21, 2007

(Date of earliest event reported)

DEERE & COMPANY

(Exact name of registrant as specified in its charter)

DELAWARE	1-4121	36-2382580
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
One John Deere Place
Moline, Illinois 61265
(Address of principal executive offices and zip code)
(309) 765-8000
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Items 2.02 and 8.01 Results of Operations and Financial Condition and Other Events.

           The following consists of Deere & Company’s press release dated November 21, 2007 concerning fourth-quarter of fiscal 2007 financial results and supplemental financial information filed as Exhibit 99.1 to this report and incorporated by reference herein.

Item 9.01	Financial Statements and Exhibits.
	(d)	Exhibits
		(99.1)	Press release and supplemental financial information (Filed herewith)

Items 2.02 and 7.01 Results of Operations and Financial Condition and Regulation FD Disclosure (Furnished herewith)

The attached schedules of Other Financial Information (Exhibit 99.2) and Fourth Quarter 2007 Earnings Conference Call information (Exhibit 99.3) are furnished under Form 8-K Items 2.02 and 7.01. The information is not filed for purposes of the Securities Exchange Act of 1934 and is not deemed incorporated by reference by any general statements incorporating by reference this report or future filings into any filings under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent Deere & Company specifically incorporates the information by reference.

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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized.

	DEERE & COMPANY
	By:	/s/ Marc A. Howze
		Marc A. Howze
		Secretary
Dated:  November 21, 2007

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Exhibit Index

Number and Description of Exhibit
(99.1)	Press release and supplemental financial information (Filed herewith)
(99.2)	Other Financial Information (Furnished herewith)
(99.3)	Fourth Quarter 2007 Earnings Conference Call information (Furnished herewith)

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EX-99.1

	Exhibit 99.1
	(Filed herewith)

NEWS RELEASE — November 21, 2007

For information, call:

Ken Golden

Director, Strategic Public Relations

309-765-5678

Deere Posts Record Earnings for Fourth Quarter and Full Year

•Net income reaches $422 million for quarter, $1.82 billion for full year.

•Quarter’s EPS from continuing operations climbs 57%; net sales and revenues up 20%.

•Agricultural operations pace improvement.

•Further sales and profit gains forecast for 2008.

MOLINE, Illinois (November 21, 2007) — Deere & Company today announced worldwide net income of $422.1 million, or $1.88 per share, for the fourth quarter ended October 31, compared with $277.3 million, or $1.20 per share, for the same period last year. Income from continuing operations was $422.1 million, or $1.88 per share, for the fourth quarter, versus $276.7 million, or $1.20 per share, last year.

For the full year, net income was $1.822 billion, or $8.01 per share, compared with $1.694 billion, or $7.18 per share, last year. Full-year income from continuing operations was $1.822 billion, or $8.01 per share, in comparison with $1.453 billion, or $6.16 per share, a year ago.

Earnings per share figures do not reflect the recently approved two-for-one stock split. The split, in the form of a 100 percent stock dividend on December 3, to holders of record on November 26, was approved by shareholders earlier this month. (Refer to Note 4 in the accompanying consolidated financial statements for further details.)

“Deere’s continuing strong performance reflects improving execution of our plans to create a fundamentally more profitable, resilient business,” said Robert W. Lane, chairman and chief executive officer. “As a result, the company has delivered four

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successive years of record results, and done so in the face of mixed market conditions.” In 2007, Deere benefited from an improving global farm economy yet saw weakening in the construction, forestry, commercial and consumer sectors, chiefly as a result of the U.S. housing downturn. Said Lane, “In addition to our ongoing focus on cost and asset management, Deere has successfully entered new markets, made important acquisitions, and expanded its global customer base with advanced lines of innovative products and services.”

Worldwide net sales and revenues increased 20 percent to $6.141 billion for the fourth quarter and were up 9 percent to $24.082 billion for the full year. Net sales of the equipment operations were $5.423 billion for the quarter and $21.489 billion for the year, compared with $4.486 billion and $19.884 billion for the respective periods last year.

Summary of Operations

Net sales of the worldwide equipment operations increased 21 percent for the quarter and rose 8 percent for the year. Included were positive effects for currency translation and price changes of 6 percent for the quarter and 5 percent for the year. Equipment sales in the U.S. and Canada were up 15 percent for the quarter and flat for the year, while net sales outside the U.S. and Canada increased by 32 percent for the quarter and 27 percent for the year. Currency translation added 9 percentage points to sales outside the U.S. and Canada for the quarter and 7 points for the year.

Deere’s equipment divisions reported operating profit of $511 million for the quarter and $2.318 billion for the year, compared with $276 million and $1.905 billion for the same periods last year. The operating profit improvement for the quarter was largely due to the favorable impact of higher sales volumes and improved price realization, partially offset by higher selling, administrative and general expenses, and increased research and development costs. Full-year operating profit rose primarily due to improved price realization and higher sales and production volumes. Higher selling, administrative and general expenses, increased raw-material costs, and higher research and development costs partially offset the improvement for the full year.

Trade receivables and inventories at the end of the quarter were $5.392 billion, or 25 percent of previous 12-month sales, compared with $4.995 billion, or 25 percent of sales, a year ago.

Financial services reported net income of $96.9 million for the quarter and $363.7 million for the full year versus $87.5 million and $584.3 million for the comparable

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periods last year, which included results from the discontinued health-care business. Income from continuing operations was $96.9 million for the quarter and $363.7 million for the year, versus $86.9 million and $343.7 million a year earlier. The improvement for both periods was primarily due to growth in the credit portfolio, partially offset by increased selling, administrative and general expenses.  Full-year results were affected by a higher provision for credit losses.

Company Outlook

Company equipment sales are projected to increase by about 12 percent for the full year and to be up approximately 25 percent for the first quarter of 2008. LESCO operations are expected to account for about 2 percentage points of the sales increase for the year and 3 points in the first quarter. Deere’s net income is forecast to be about $2.1 billion for 2008 and about $325 million for the first quarter.

Company Summary

In addition to achieving strong financial performance, Deere in 2007 funded a disciplined global growth plan, returned $1.9 billion to investors through share repurchases and dividends, and made further strides in operating and asset efficiency. “Deere is well-positioned to continue benefiting from powerful global economic trends such as growing affluence and increasing demand for food, feed and biofuels,” Lane said. “Our plans for growing a great business are well on track, and yielding impressive results, thanks to the strong support of our employees, customers, suppliers and dealers.”

Equipment Division Performance

Agricultural. Division sales rose 35 percent for the quarter and 18 percent for the full year. For both periods, the increases were a result of higher volumes, the favorable effects of currency translation, and improved price realization. Operating profit was $388 million for the quarter and $1.443 billion for the full year, compared with $143 million and $882 million for the respective periods last year. Operating profit was higher for both the quarter and full year  primarily due to the favorable impact of higher sales and production volumes and improved price realization, partially offset by higher selling, administrative and general expenses, which were attributable in large part to the

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division’s growth initiatives and currency translation.  Also affecting full-year results were increased raw-material costs and higher research and development costs.

Commercial & Consumer. Division sales rose 35 percent for the quarter and 12 percent for the full year compared with 2006. LESCO operations accounted for 29 percentage points of the quarter’s increase and 9 points for the full year. The division had an operating loss of $11 million for the quarter and an operating profit of $304 million for the full year, compared with last year’s operating loss of $3 million for the quarter and operating profit of $221 million for the year. Operating profit declined for the quarter largely due to higher selling, administrative and general expenses, primarily related to LESCO, partially offset by higher sales volumes. The year’s profit increase primarily resulted from the impact of higher sales volumes and improved price realization, partially offset by higher selling, administrative and general expenses largely attributable to LESCO. A supplier of consumable lawn care, landscape, golf course and pest control products, LESCO was acquired by Deere in the third quarter of 2007.

Construction & Forestry. Sales declined 11 percent for the fourth quarter and were down 13 percent for the full year. Operating profit was $134 million for the quarter and $571 million for the full year, compared with $136 million and $802 million a year ago. Operating profit declined for the quarter mainly due to lower sales volumes, largely offset by improved price realization.  The year’s decline in operating profit was primarily due to lower sales and production volumes and higher raw-material costs, partially offset by positive price realization. Last year’s results included expenses related to the closure of a Canadian forestry-equipment facility.

Market Conditions & Outlook

Agricultural.  Driven by continuing strength in the farm sector, worldwide sales of John Deere agricultural equipment are expected to increase by about 17 percent for full-year 2008.  Included in the division’s sales forecast is one percentage point for currency translation and one point related to the acquisition of Ningbo Benye, a Chinese-based tractor manufacturer purchased by Deere in the fourth quarter of 2007.

Worldwide farm conditions remain quite positive, benefiting from growing economic prosperity, healthy commodity prices and demand for renewable fuels. Relative to consumption, global grain stocks such as wheat and corn are continuing to

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run at or near 30-year lows. John Deere sales are expected to receive further support from a large number of advanced new products reaching global customers in 2008.

On an industry basis, sales of farm machinery in the U.S. and Canada are forecast to be up 10 to 15 percent for the year, due in part to a substantial jump in farm cash receipts. Large tractors and combines are expected to pace the sales improvement, while demand for cotton pickers is expected to be lower. Industry sales in Western Europe are forecast to be flat to up slightly for the year with greater increases expected in Eastern Europe and the CIS (Commonwealth of Independent States) countries, including Russia. These latter areas are expected to continue experiencing strong growth due to rising demand for productive farm machinery. South American markets are expected to show further improvement in 2008, with industry sales forecast to increase by 10 to 15 percent. Farm machinery demand in Brazil, while receiving support from strong commodity prices, may be tempered by uncertainties over the status of government-backed financing programs. Deere anticipates its sales will be helped by an expanded product line and additional production capacity associated with the opening of a new tractor-manufacturing facility in Montenegro, Brazil.

Commercial & Consumer.  John Deere commercial and consumer equipment sales are projected to be up about 10 percent for the year, including about 8 percentage points from a full year of LESCO sales.  Division sales, in addition, are expected to benefit from new products, such as an expanded line of innovative commercial mowing equipment. Given the nature of Deere’s commercial and consumer businesses, sales tend to have a high degree of sensitivity to weather patterns and U.S. housing markets.

Construction & Forestry.  U.S. markets for construction and forestry equipment are forecast to remain under pressure in 2008 due in large part to a continuing slump in housing starts. Non-residential construction is expected to remain flat at last year’s relatively strong levels. Pressure on the U.S. housing market is expected to contribute to lower worldwide sales of forestry equipment in 2008, though sales in Europe are forecast to remain at strong levels. Despite this generally weak environment, Deere sales are expected to benefit from new products and a return to factory-production levels in closer alignment with retail demand. Last year, the company made a significant reduction in construction and forestry inventories, which restrained production. In addition, Deere’s sales to the independent rental channel, which saw a large decline in 2007, are expected to be flat in the coming year. For 2008, the company’s worldwide

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sales of construction and forestry equipment are forecast to be approximately equal to the prior year.

Credit.  Full-year 2008 net income for Deere’s credit operations is forecast to be approximately $375 million, with the improvement driven by growth in the credit portfolio.

John Deere Capital Corporation

The following is disclosed on behalf of the company’s credit subsidiary, John Deere Capital Corporation (JDCC), in connection with the disclosure requirements applicable to its periodic issuance of debt securities in the public market.

JDCC’s net income was $82.8 million for the fourth quarter and $311.2 million for the full year, compared with net income of $73.8 million and $291.2 million for the respective periods last year. Results for both periods benefited primarily from growth in the portfolio, partially offset by increased selling, administrative and general expenses. The full year was also affected by a higher provision for credit losses.

Net receivables and leases financed by JDCC were $18.648 billion at October 31, 2007, compared with $17.576 billion last year. Net receivables and leases administered, which include receivables previously sold, totaled $18.871 billion at October 31, 2007, compared with $18.529 billion one year ago.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:  Statements under “Company Outlook,” “Company Summary,” “Market Conditions & Outlook,” and other statements herein that relate to future operating periods are subject to important risks and uncertainties that could cause actual results to differ materially.  Some of these risks and uncertainties could affect particular lines of business, while others could affect all of the Company’s businesses.

Forward-looking statements involve certain factors that are subject to change, including for the Company’s agricultural equipment segment, the many interrelated factors that affect farmers’ confidence.  These factors include worldwide demand for agricultural products, world grain stocks, weather conditions (including drought in the eastern U.S.), soil conditions, harvest yields, prices for commodities and livestock, crop production expenses, availability of transport for crops, the growth of non-food uses for some crops (including ethanol and biodiesel production), real estate values, available

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acreage for farming, the land ownership policies of various governments, changes in government farm programs (including those that may result from farm economic conditions in Brazil), international reaction to such programs, uncertainties over passage of the U.S. Farm Bill, global trade agreements, animal diseases and their effects on poultry and beef consumption and prices (including bovine spongiform encephalopathy, commonly known as “mad cow” disease, and avian flu), crop pests and diseases (including Asian rust), and the level of farm product exports (including concerns about genetically modified organisms).  The success of the fall harvest and the prices realized by farmers for their crops especially affect retail sales of agricultural equipment in the winter.

Factors affecting the outlook for the Company’s commercial and consumer equipment segment include weather conditions, general economic conditions, customer profitability, consumer confidence, consumer borrowing patterns, consumer purchasing preferences, housing starts, infrastructure investment, and spending by municipalities and golf courses.

The number of housing starts, interest rates and consumer spending patterns are especially important to sales of the Company’s construction equipment.  The levels of public and non-residential construction also impact the results of the Company’s construction and forestry segment.  Prices for pulp, lumber and structural panels are important to sales of forestry equipment.

All of the Company’s businesses and its reported results are affected by general economic conditions in, and the political and social stability of, the global markets in which the Company operates; production, design and technological difficulties, including capacity and supply constraints and prices, including for supply commodities such as steel and rubber; the availability and prices of strategically sourced materials, components and whole goods; delays or disruptions in the Company’s supply chain due to weather or natural disasters; start-up of new plants and new products; the success of new product initiatives and customer acceptance of new products; oil and energy prices and supplies; inflation and deflation rates, interest rate levels and foreign currency exchange rates; the availability and cost of freight; trade, monetary and fiscal policies of various countries; wars and other international conflicts and the threat thereof; actions by the U.S. Federal Reserve Board and other central banks; actions by the U.S. Securities and Exchange Commission; actions by environmental regulatory agencies, including those related to engine emissions and the risk of global warming; actions by other

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regulatory bodies; actions by rating agencies; capital market disruptions; customer borrowing and repayment practices, the number and size of customer loan delinquencies and defaults, and the sub-prime credit market crises; actions of competitors in the various industries in which the Company competes, particularly price discounting; dealer practices especially as to levels of new and used field inventories; labor relations; changes to accounting standards; changes in tax rates; the effects of, or response to, terrorism; and changes in laws and regulations affecting the sectors in which the Company operates.  The spread of major epidemics (including influenza, SARS, fevers and other viruses) also could affect Company results.  Company results are also affected by changes in the level of employee retirement benefits, changes in market values of investment assets and the level of interest rates, which impact retirement benefit costs, and significant changes in health care costs.  Other factors that could affect results are changes in Company declared dividends, acquisitions and divestitures of businesses, and common stock issuances and repurchases.

The Company’s outlook is based upon assumptions relating to the factors described above, which are sometimes based upon estimates and data prepared by government agencies.  Such estimates and data are often revised.  The Company, except as required by law, undertakes no obligation to update or revise its outlook, whether as a result of new developments or otherwise.  Further information concerning the Company and its businesses, including factors that potentially could materially affect the Company’s financial results, is included in the Company’s most recent annual report on Form 10-K (including the factors discussed in Item 1A. Risk Factors) and other filings with the U.S. Securities and Exchange Commission.

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Fourth Quarter and 2007 Press Release

(millions of dollars)

	Three Months Ended October 31							Twelve Months Ended October 31
	2007			2006			% Change	2007			2006			% Change
Net sales and revenues:
Agricultural equipment net sales	$	3,188		$	2,370		+35	$	12,121		$	10,232		+18
Commercial and consumer equipment net sales	1,027			758			+35	4,333			3,877			+12
Construction and forestry net sales	1,208			1,358			-11	5,035			5,775			-13
Total net sales *	5,423			4,486			+21	21,489			19,884			+8
Credit revenues	567			502			+13	2,094			1,819			+15
Other revenues	151			130			+16	499			445			+12
Total net sales and revenues *	$	6,141		$	5,118		+20	$	24,082		$	22,148		+9
Operating profit: **
Agricultural equipment	$	388		$	143		+171	$	1,443		$	882		+64
Commercial and consumer equipment	(11		)	(3		)	+267	304			221			+38
Construction and forestry	134			136			-1	571			802			-29
Credit	145			131			+11	548			520			+5
Other	1			(2		)		5			1			+400
Total operating profit *	657			405			+62	2,871			2,426			+18
Interest, corporate expenses and income taxes	(235		)	(129		)	+82	(1,049		)	(973		)	+8
Income from continuing operations	422			276			+53	1,822			1,453			+25
Income from discontinued operations				1							241
Net income	$	422		$	277		+52	$	1,822		$	1,694		+8

*      Includes equipment operations outside the U.S. and Canada as follows:
Net sales	$	2,014	$	1,530	+32	$	7,660	$	6,033	+27
Operating profit	$	217	$	71	+206	$	779	$	460	+69
The company views its operations as consisting of two geographic areas, the “U.S. and Canada”, and “outside the U.S. and Canada”.

**   Operating profit is income from continuing operations before external interest expense, certain foreign exchange gains and losses, income taxes and corporate expenses. However, operating profit of the credit segment includes the effect of interest expense and foreign exchange gains or losses.

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DEERE & COMPANY
STATEMENT OF CONSOLIDATED INCOME
For the Three Months Ended October 31, 2007 and 2006
(In millions of dollars and shares except per share amounts)

	2007		2006
Net Sales and Revenues
Net sales	$	5,423.4	$	4,486.3
Finance and interest income	565.2		494.0
Other income	152.3		137.2
Total	6,140.9		5,117.5
Costs and Expenses
Cost of sales	4,054.2		3,524.2
Research and development expenses	231.4		201.1
Selling, administrative and general expenses	754.2		619.2
Interest expense	309.0		275.4
Other operating expenses	173.5		130.1
Total	5,522.3		4,750.0
Income of Consolidated Group Before Income Taxes	618.6		367.5
Provision for income taxes	202.7		108.0
Income of Consolidated Group	415.9		259.5
Equity in Income of Unconsolidated Affiliates	6.2		17.2
Income from Continuing Operations	422.1		276.7
Income from Discontinued Operations			.6
Net Income	$	422.1	$	277.3
Per Share Data
Basic:
Continuing operations	$	1.91	$	1.21
Discontinued operations
Net income	$	1.91	$	1.21
Diluted:
Continuing operations	$	1.88	$	1.20
Discontinued operations
Net income	$	1.88	$	1.20
Average Shares Outstanding:
Basic	221.0		228.9
Diluted	224.1		231.0

See Notes to Interim Financial Statements.

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DEERE & COMPANY
STATEMENT OF CONSOLIDATED INCOME
For the Years Ended October 31, 2007 and 2006
(In millions of dollars and shares except per share amounts)

	2007		2006
Net Sales and Revenues
Net sales	$	21,489.1	$	19,884.0
Finance and interest income	2,054.8		1,776.8
Other income	538.3		487.0
Total	24,082.2		22,147.8
Costs and Expenses
Cost of sales	16,252.8		15,362.0
Research and development expenses	816.8		725.8
Selling, administrative and general expenses	2,620.8		2,323.9
Interest expense	1,151.2		1,017.5
Other operating expenses	565.1		544.8
Total	21,406.7		19,974.0
Income of Consolidated Group Before Income Taxes	2,675.5		2,173.8
Provision for income taxes	883.0		741.6
Income of Consolidated Group	1,792.5		1,432.2
Equity in Income of Unconsolidated Affiliates	29.2		21.0
Income from Continuing Operations	1,821.7		1,453.2
Income from Discontinued Operations			240.6
Net Income	$	1,821.7	$	1,693.8
Per Share Data
Basic:
Continuing operations	$	8.11	$	6.23
Discontinued operations			1.03
Net income	$	8.11	$	7.26
Diluted:
Continuing operations	$	8.01	$	6.16
Discontinued operations			1.02
Net income	$	8.01	$	7.18
Average Shares Outstanding:
Basic	224.6		233.4
Diluted	227.5		235.8

See Notes to Interim Financial Statements.

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DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEET

As of October 31, 2007 and 2006

(In millions of dollars)

	2007		2006
Assets
Cash and cash equivalents	$	2,278.6	$	1,687.5
Marketable securities	1,623.3		1,816.7
Receivables from unconsolidated affiliates	29.6		22.2
Trade accounts and notes receivable — net	3,055.0		3,037.7
Financing receivables — net	15,631.2		14,004.0
Restricted financing receivables — net	2,289.0		2,370.8
Other receivables	596.3		448.2
Equipment on operating leases — net	1,705.3		1,493.9
Inventories	2,337.3		1,957.3
Property and equipment — net	3,534.0		2,763.6
Investments in unconsolidated affiliates	149.5		124.0
Goodwill	1,234.3		1,110.0
Other intangible assets — net	131.0		56.4
Retirement benefits	1,976.0		2,642.4
Deferred income taxes	1,399.5		582.2
Other assets	605.8		603.5
Total Assets	$	38,575.7	$	34,720.4
Liabilities and Stockholders’ Equity
Short-term borrowings	$	9,969.4	$	8,121.2
Payables to unconsolidated affiliates	136.5		31.0
Accounts payable and accrued expenses	5,357.9		4,482.8
Accrued taxes	274.3		152.5
Deferred income taxes	183.4		64.9
Long-term borrowings	11,798.2		11,584.0
Retirement benefits and other liabilities	3,700.2		2,792.8
Total liabilities	31,419.9		27,229.2
Stockholders’ equity	7,155.8		7,491.2
Total Liabilities and Stockholders’ Equity	$	38,575.7	$	34,720.4

See Notes to Interim Financial Statements.

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DEERE & COMPANY
STATEMENT OF CONSOLIDATED CASH FLOWS
For the Years Ended October 31, 2007 and 2006
(In millions of dollars)

	2007			2006
Cash Flows from Operating Activities
Net income	$	1,821.7		$	1,693.8
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful receivables	71.0			65.9
Provision for depreciation and amortization	744.4			691.4
Share-based compensation expense	82.0			90.7
Gain on the sale of a business				(356.0		)
Undistributed earnings of unconsolidated affiliates	(17.1		)	(18.5		)
Provision (credit) for deferred income taxes	(4.2		)	15.8
Changes in assets and liabilities:
Trade, notes and financing receivables related to sales	131.1			(703.9		)
Inventories	(357.2		)	(78.0		)
Accounts payable and accrued expenses	418.6			155.3
Accrued income taxes payable/receivable	10.5			29.7
Retirement benefit accruals/prepaid pension costs	(163.2		)	(400.0		)
Other	21.8			(213.0		)
Net cash provided by operating activities	2,759.4			973.2
Cash Flows from Investing Activities
Collections of financing receivables	10,335.3			9,274.9
Proceeds from sales of financing receivables	141.4			108.0
Proceeds from maturities and sales of marketable securities	2,458.5			3,006.0
Proceeds from sales of equipment on operating leases	355.2			310.9
Proceeds from sales of businesses, net of cash sold	77.2			440.1
Cost of financing receivables acquired	(11,388.3		)	(10,451.0		)
Purchases of marketable securities	(2,251.6		)	(2,565.6		)
Purchases of property and equipment	(1,022.5		)	(766.0		)
Cost of equipment on operating leases acquired	(461.7		)	(417.4		)
Acquisitions of businesses, net of cash acquired	(189.3		)	(55.7		)
Other	12.5			(33.1		)
Net cash used for investing activities	(1,933.3		)	(1,148.9		)
Cash Flows from Financing Activities
Increase in short-term borrowings	99.4			1,208.7
Proceeds from long-term borrowings	4,283.9			3,140.2
Payments of long-term borrowings	(3,136.5		)	(3,520.6		)
Proceeds from issuance of common stock	285.7			327.6
Repurchases of common stock	(1,517.8		)	(1,299.3		)
Dividends paid	(386.7		)	(348.4		)
Excess tax benefits from share-based compensation	102.2			85.6
Other	(11.2		)	(10.6		)
Net cash used for financing activities	(281.0		)	(416.8		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	46.0			21.8
Net Increase (Decrease) in Cash and Cash Equivalents	591.1			(570.7		)
Cash and Cash Equivalents at Beginning of Year	1,687.5			2,258.2
Cash and Cash Equivalents at End of Year	$	2,278.6		$	1,687.5

See Notes to Interim Financial Statements.

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Notes to Financial Statements

(1) Dividends declared and paid on a per share basis were as follows:

	Three Months Ended October 31				Twelve Months Ended October 31
	2007		2006		2007		2006
Dividends declared	$	.50	$	.39	$	1.82	$	1.56
Dividends paid	$	.44	$	.39	$	1.71	$	1.48

(2)	The calculation of basic net income per share is based on the average number of shares outstanding. The calculation of diluted net income per share recognizes the dilutive effect of the assumed exercise of stock options.
(3)	Comprehensive income, which includes all changes in the Company’s equity during the period except transactions with stockholders, was as follows in millions of dollars:

	Three Months Ended October 31						Twelve Months Ended October 31
	2007			2006			2007			2006
Net income	$	422.1		$	277.3		$	1,821.7		$	1,693.8
Other comprehensive income (loss), net of tax*:
Minimum pension liability adjustment	65.8			21.3			65.8			21.3
Cumulative translation adjustment	147.9			18.7			329.1			79.7
Unrealized gain (loss) on derivatives	(15.0		)	(4.1		)	(14.4		)	.6
Unrealized loss on investments	(.8		)	(3.1		)	(1.0		)	(.9		)
Comprehensive income	$	620.0		$	310.1		$	2,201.2		$	1,794.5

* Does not include the incremental effect on accumulated other comprehensive income from the adoption of FASB Statement No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, at October 31, 2007, as required by the new accounting standard. The incremental effect from the adoption of the new Statement was a decrease in accumulated other comprehensive income (stockholders’ equity) of approximately $1.1 billion.

18

(4) On November 14, 2007, the stockholders of the Company approved a two-for-one stock split effected in the form of a 100 percent stock dividend to stockholders of record on November 26, 2007, to be distributed on December 3, 2007. The proforma share data adjusted for the effects of the stock split are as follows:

	Three Months Ended October 31				Twelve Months Ended October 31
	2007		2006		2007		2006
Per Share Data:
Basic:
Continuing operations	$	.96	$	.61	$	4.05	$	3.11
Discontinued operations							.52
Net income	$	.96	$	.61	$	4.05	$	3.63
Diluted:
Continuing operations	$	.94	$	.60	$	4.00	$	3.08
Discontinued operations							.51
Net income	$	.94	$	.60	$	4.00	$	3.59
Average Shares Outstanding:
Basic	441.9		457.8		449.3		466.8
Diluted	448.1		462.0		455.0		471.6
Dividends:
Dividends declared	$	.25	$	.19 ½	$	.91	$	.78
Dividends paid	$	.22	$	.19 ½	$	.85 ½	$	.74

(5) The consolidated financial statements represent the consolidation of all Deere & Company’s subsidiaries except for the health care operations, which are reported on a discontinued basis in the Statement of Consolidated Income. In the supplemental consolidating data in Note 6 to the financial statements, “Equipment Operations” include the Company’s agricultural equipment, commercial and consumer equipment and construction and forestry operations, with Financial Services reflected on the equity basis except for the health care operations, which are reported on a discontinued basis. The supplemental “Financial Services” data in Note 6 include primarily Deere & Company’s credit operations with the health care operations reported on a discontinued basis. In February 2006, the Company sold its health care operations.

19

(6) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME
For the Three Months Ended October 31, 2007 and 2006

(In millions of dollars)

	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2007		2006		2007		2006
Net Sales and Revenues
Net sales	$	5,423.4	$	4,486.3
Finance and interest income	44.1		27.5		$	595.5	$	540.5
Other income	110.1		104.9		66.0		49.4
Total	5,577.6		4,618.7		661.5		589.9
Costs and Expenses
Cost of sales	4,054.5		3,524.2
Research and development expenses	231.4		201.1
Selling, administrative and general expenses	654.2		508.4		102.1		111.3
Interest expense	50.2		42.1		273.4		247.6
Interest compensation to Financial Services	59.7		59.7
Other operating expenses	55.5		45.0		139.5		101.7
Total	5,105.5		4,380.5		515.0		460.6
Income of Consolidated Group Before Income Taxes	472.1		238.2		146.5		129.3
Provision for income taxes	153.1		65.5		49.6		42.5
Income of Consolidated Group	319.0		172.7		96.9		86.8
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Credit	95.6		88.0				.1
Other	7.5		16.0
Total	103.1		104.0				.1
Income from Continuing Operations	422.1		276.7		96.9		86.9
Income from Discontinued Operations			.6				.6
Net Income	$	422.1	$	277.3	$	96.9	$	87.5

*   Deere & Company with Financial Services on the equity basis except for the health care operations reported on a discontinued basis.

The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

20

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF INCOME
For the Years Ended October 31, 2007 and 2006

(In millions of dollars)

	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2007		2006		2007		2006
Net Sales and Revenues
Net sales	$	21,489.1	$	19,884.0
Finance and interest income	123.4		92.2		$	2,225.2	$	1,980.3
Other income	403.7		383.9		214.3		163.6
Total	22,016.2		20,360.1		2,439.5		2,143.9
Costs and Expenses
Cost of sales	16,254.0		15,362.0
Research and development expenses	816.8		725.8
Selling, administrative and general expenses	2,237.0		1,942.1		390.8		384.3
Interest expense	181.2		193.4		1,017.3		876.1
Interest compensation to Financial Services	246.4		243.7
Other operating expenses	157.8		239.9		478.8		362.9
Total	19,893.2		18,706.9		1,886.9		1,623.3
Income of Consolidated Group Before Income Taxes	2,123.0		1,653.2		552.6		520.6
Provision for income taxes	693.8		564.4		189.3		177.3
Income of Consolidated Group	1,429.2		1,088.8		363.3		343.3
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Credit	360.8		342.8		.4		.4
Other	31.7		21.6
Total	392.5		364.4		.4		.4
Income from Continuing Operations	1,821.7		1,453.2		363.7		343.7
Income from Discontinued Operations			240.6				240.6
Net Income	$	1,821.7	$	1,693.8	$	363.7	$	584.3

*   Deere & Company with Financial Services on the equity basis except for the health care operations reported on a discontinued basis.

The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

21

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEET
As of October 31, 2007 and 2006

(In millions of dollars)

	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2007		2006		2007		2006
Assets
Cash and cash equivalents	$	2,019.6	$	1,476.7	$	259.1	$	210.8
Marketable securities	1,468.2		1,709.0		155.1		107.7
Receivables from unconsolidated subsidiaries and affiliates	437.0		494.2		.2		.1
Trade accounts and notes receivable — net	1,028.8		986.7		2,475.9		2,485.6
Financing receivables — net	11.0		5.3		15,620.2		13,998.7
Restricted financing receivables — net					2,289.0		2,370.8
Other receivables	524.0		317.9		74.2		130.4
Equipment on operating leases — net					1,705.3		1,493.9
Inventories	2,337.3		1,957.3
Property and equipment —net	2,721.4		2,414.0		812.6		349.6
Investments in unconsolidated subsidiaries and affiliates	2,643.4		2,665.3		5.1		4.6
Goodwill	1,234.3		1,110.0
Other intangible assets — net	131.0		56.4
Retirement benefits	1,967.6		2,630.3		9.0		12.1
Deferred income taxes	1,418.5		681.5		46.1		10.6
Other assets	347.6		306.1		259.3		298.3
Total Assets	$	18,289.7	$	16,810.7	$	23,711.1	$	21,473.2
Liabilities and Stockholders’ Equity
Short-term borrowings	$	129.8	$	282.5	$	9,839.7	$	7,838.6
Payables to unconsolidated subsidiaries and affiliates	136.5		31.0		407.4		472.2
Accounts payable and accrued expenses	4,884.4		4,115.2		924.2		803.1
Accrued taxes	242.4		137.9		33.7		14.6
Deferred income taxes	99.8		16.8		148.8		158.0
Long-term borrowings	1,973.2		1,969.5		9,825.0		9,614.5
Retirement benefits and other liabilities	3,667.8		2,766.6		33.1		26.3
Total liabilities	11,133.9		9,319.5		21,211.9		18,927.3
Stockholders’ equity	7,155.8		7,491.2		2,499.2		2,545.9
Total Liabilities and Stockholders’ Equity	$	18,289.7	$	16,810.7	$	23,711.1	$	21,473.2

*   Deere & Company with Financial Services on the equity basis.

The supplemental data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

22

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

STATEMENT OF CASH FLOWS

For the Years Ended October 31, 2007 and 2006

(In millions of dollars)

	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2007			2006			2007			2006
Cash Flows from Operating Activities
Net income	$	1,821.7		$	1,693.8		$	363.7		$	584.3
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful receivables	7.5			14.6			63.5			51.4
Provision for depreciation and amortization	429.2			406.8			374.6			323.2
Gain on the sale of a business				(356.0		)				(356.0		)
Undistributed earnings of unconsolidated subsidiaries and affiliates	207.7			(273.7		)	(.3		)	(.3		)
Provision (credit) for deferred income taxes	39.1			19.1			(43.3		)	(3.4		)
Changes in assets and liabilities:
Receivables	(38.8		)	(108.4		)	(17.0		)	(20.6		)
Inventories	(87.9		)	211.8
Accounts payable and accrued expenses	329.8			83.8			104.0			128.7
Accrued income taxes payable/receivable	(5.1		)	45.1			15.6			(15.4		)
Retirement benefit accruals/prepaid pension costs	(172.1		)	(395.1		)	9.0			(4.9		)
Other	157.6			(30.5		)	(18.8		)	105.2
Net cash provided by operating activities	2,688.7			1,311.3			851.0			792.2
Cash Flows from Investing Activities
Collections of receivables							30,178.1			29,067.2
Proceeds from sales of financing receivables							229.9			139.6
Proceeds from maturities and sales of marketable securities	2,453.5			2,901.6			5.0			104.4
Proceeds from sales of equipment on operating leases							355.2			310.9
Proceeds from sales of businesses, net of cash sold	77.2			440.1
Cost of receivables acquired							(31,195.0		)	(30,907.0		)
Purchases of marketable securities	(2,200.8		)	(2,447.3		)	(50.8		)	(118.3		)
Purchases of property and equipment	(557.3		)	(493.1		)	(465.2		)	(272.9		)
Cost of equipment on operating leases acquired							(825.6		)	(808.9		)
Acquisitions of businesses, net of cash acquired	(189.3		)	(55.7		)
Other	(97.2		)	32.4			48.6			(106.3		)
Net cash provided by (used for) investing activities	(513.9		)	378.0			(1,719.8		)	(2,591.3		)
Cash Flows from Financing Activities
Increase (decrease) in short-term borrowings	(208.0		)	(140.6		)	307.5			1,349.3
Change in intercompany receivables/payables	67.6			(184.4		)	(67.6		)	4.7
Proceeds from long-term borrowings							4,283.8			3,140.2
Payments of long-term borrowings	(7.8		)	(782.7		)	(3,128.7		)	(2,737.8		)
Proceeds from issuance of common stock	285.7			327.6
Repurchases of common stock	(1,517.8		)	(1,299.3		)
Dividends paid	(386.7		)	(348.4		)	(588.1		)	(106.7		)
Excess tax benefits from share-based compensation	102.2			85.6
Other	3.7			(10.6		)	93.4			40.8
Net cash provided by (used for) financing activities	(1,661.1		)	(2,352.8		)	900.3			1,690.5
Effect of Exchange Rate Changes on Cash and Cash Equivalents	29.2			16.6			16.8			5.2
Net Increase (Decrease) in Cash and Cash Equivalents	542.9			(646.9		)	48.3			(103.4		)
Cash and Cash Equivalents at Beginning of Year	1,476.7			2,123.6			210.8			314.2
Cash and Cash Equivalents at End of Year	$	2,019.6		$	1,476.7		$	259.1		$	210.8

*   Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

23

EX-99.2

Exhibit 99.2

(Furnished herewith)

Deere & Company

Other Financial Information

													Commercial and Consumer
For the Twelve Months Ended October 31,	Equipment Operations						Agricultural Equipment						Equipment						Construction and Forestry
Dollars in millions	2007			2006			2007			2006			2007			2006			2007			2006
Net Sales	$	21,489		$	19,884		$	12,121		$	10,232		$	4,333		$	3,877		$	5,035		$	5,775
Average Identifiable Assets
With Inventories at LIFO	$	8,092		$	7,546		$	4,036		$	3,652		$	1,672		$	1,581		$	2,384		$	2,313
With Inventories at Standard Cost	$	9,205		$	8,634		$	4,789		$	4,386		$	1,860		$	1,767		$	2,556		$	2,481
Operating Profit	$	2,318		$	1,905		$	1,443		$	882		$	304		$	221		$	571		$	802
Percent of Net Sales	10.8		%	9.6		%	11.9		%	8.6		%	7.0		%	5.7		%	11.3		%	13.9		%
Operating Return on Assets
With Inventories at LIFO	28.6		%	25.2		%	35.8		%	24.2		%	18.2		%	14.0		%	24.0		%	34.7		%
With Inventories at Standard Cost	25.2		%	22.1		%	30.1		%	20.1		%	16.3		%	12.5		%	22.3		%	32.3		%
SVA Cost of Assets	$	(1,094	)	$	(1,036	)	$	(574	)	$	(526	)	$	(213	)	$	(212	)	$	(307	)	$	(298	)
SVA	$	1,224		$	869		$	869		$	356		$	91		$	9		$	264		$	504

For the Twelve Months Ended October 31,	Financial Services						The Company evaluates its business results on the basis of generally accepted accounting principles. In addition, it uses a metric referred to as Shareholder Value Added (SVA), which management believes is an appropriate measure for the performance of its businesses. SVA is, in effect, the pretax profit left over after subtracting the cost of enterprise capital. The Company is aiming for a sustained creation of SVA and is using this metric for various performance goals. Certain compensation is also determined on the basis of performance using this measure. For purposes of determining SVA, each of the equipment segments is assessed a pretax cost of assets, which on an annual basis is 11-12 percent of the segment’s average identifiable operating assets during the applicable period with inventory at standard cost. Management believes that valuing inventories at standard cost more closely approximates the current cost of inventory and the Company’s investment in the asset. Financial Services is assessed a pretax cost of equity, which on an annual basis is approximately 18 percent of its average equity during the period excluding the allowance for doubtful receivables. The cost of assets or equity, as applicable, is deducted from the operating profit or added to the operating loss of the equipment segments or Financial Services to determine the amount of SVA. For this purpose, the operating profit of Financial Services is net income before income taxes, changes to the allowance for doubtful receivables and discontinued operations. The average equity and operating profit of Financial Services is adjusted for the allowance for doubtful receivables in order to more closely reflect credit losses on a write-off basis.
Dollars in millions	2007			2006
Net Income	$	364		$	584
Average Equity	$	2,524		$	2,466
Return on Equity	14.4		%	23.7		%
Operating Profit	$	553		$	521
Change in Allowance for Doubtful Receivables	$	17		$	15
SVA Income	$	570		$	536
Average Equity Continuing Operations	$	2,524		$	2,424
Average Allowance for Doubtful Receivables	$	167		$	148
SVA Average Equity	$	2,691		$	2,572
Cost of Equity	$	(480	)	$	(457	)
SVA Continuing Operations	$	90		$	79

24

EX-99.3

Exhibit 99.3

(Furnished herewith)

Fourth Quarter 2007 Earnings Conference Call 25 Exhibit 99.3 (Furnished herewith)

Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the company’s projections, plans and objectives for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that impact our businesses and customers. They also may include financial measures that are not in conformance with GAAP (accounting principles generally accepted in the United States of America). Words such as “forecast,” “projection,” “outlook,” “expected,” “estimated,” “will,” “plan,” “anticipate,” “intend,” or other similar words or phrases often identify forward-looking statements. Actual results may differ materially from those projected in these forward-looking statements based on a number of factors and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the company’s most recent Form 8-K and periodic report filed with the Securities and Exchange Commission, and is incorporated by reference herein. Investors should refer to and consider the incorporated information on risks and uncertainties in addition to the information presented here. Investors should consider non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. The company, except as required by law, undertakes no obligation to update or revise its forward-looking statements whether as a result of new developments or otherwise. 26

Stock Split Details Two-for-one stock split approved by shareholders: 14 November 2007 Form: 100% stock dividend Record date: 26 November 2007 Distribution date: 3 December 2007 Price adjustment date: 4 December 2007 27

Supplemental Information Stock Split – Fourth Quarter 2007 As reported and as adjusted to reflect stock split: As Proforma Reported Stock Split Net Income As Reported (millions) $ 422.1 $ 422.1 Average Shares Outstanding (millions): Diluted 224.1 448.1 Earnings Per Share: Diluted $1.88 $0.94 28

Fourth Quarter Overview 53% $276 $422 Income from Continuing Operations 57% $1.20 $1.88 Diluted EPS from Continuing Operations 21% $4,486 $5,423 Net Sales 20% $5,118 $6,141 Net Sales and Revenues Change Q4 2006 Q4 2007 (in millions of dollars except per share amounts) 29

Equipment operations net sales: up 21% in the fourth quarter compared to Q4 2006 Price realization: ~ +2 points Currency translation: ~ +4 points LESCO added ~ $220 million (~ +5 points) Fourth Quarter Overview Net Sales 30

Deere & Company Forecast as of 21 November 2007 (Previous Forecast as of 15 August 2007) -22 +74 +25 +26 +5 -19 +56 +26 Q4 2007 Actual +6 -22 U.S. and Canada C&F +27 +19 U.S. and Canada AG +7 +11 Outside U.S. and Canada +7 +3 Total U.S. and Canada +3 Flat Worldwide CCE Flat -18 Worldwide C&F +9 +16 Worldwide AG +7 +18 +5 Total Worldwide Fiscal 2008 Forecast Q1 2008 Forecast Fiscal 2007 Actual % Change * Percentage change from same period in previous year, excluding purchased product. Production Tonnage* 31

2008 Company Outlook First Quarter 2008 Forecast Net Sales up ~ 25% vs. 1Q 2007 Net Income of ~ $325 million Fiscal Year 2008 Forecast Net Sales up ~ 12% from FY 2007 Net price realization: ~ +2 points LESCO: ~ +2 points Net Income of ~ $2.1 billion Deere & Company Forecast as of 21 November 2007 32

+171% $143 $388 Operating Profit* +56% Production Tonnage +35% $2,370 $3,188 Net Sales Change Q4 2006 Q4 2007 (in millions of dollars) * Operating Profit impacted by: Higher sales and production volumes Improved price realization Higher SA&G Incremental margin: ~ 30% Worldwide Agricultural Equipment Fourth Quarter Overview 33

Global Production vs. Use Wheat, Corn & Soybeans 21.1% -13 234 221 07/08P 27.6% 11 225 236 06/07E 24.6% 215 220 05/06 Soybeans -21 14.5% 763 768 07/08P 14.6% -18 721 703 06/07E 17.5% 704 696 05/06 Corn -41 17.8% -14 618 603 07/08P 20.1% -24 617 594 06/07E 23.6% 624 622 05/06 Wheat Stocks To Use Net Use Production Crop Year Crop (million metric tons) Source: USDA – 9 November 2007 Crop Years: 05/06 – Actual; 06/07 – Estimated; 07/08 - Projected 34 -3 3-Yr. Total -8 5 3-Yr. Total 5 3-Yr. Total 3

U.S. Farm Cash Receipts Estimates 280.2 128.3 139.6 Previous 2008 294.3 134.0 148.0 2008 Forecast 281.9 133.1 135.0 Previous 2007 291.8 138.8 139.4 2007 Forecast 255.1 Total Cash Receipts Government Payments 119.3 Livestock 120.0 Crops 2006 Estimate (in billions of dollars) Deere & Company Forecast as of 21 November 2007 (Previous Forecast as of 15 August 2007) 35 15.8 13.6 13.8 12.3 12.3

U.S. Commodity Price Estimates $.580 $7.65 $4.00 $3.25 Previous 2008/09 $.620 $9.50 $4.75 $3.50 2008/09 Forecast $.480 $7.45 $4.85 $2.90 Previous 2007/08 $.540 $9.40 $6.50 $3.30 2007/08 Forecast $.465 $6.43 $4.26 $3.05 2006/07 Estimate Cotton (per pound) Soybeans (per bushel) Wheat (per bushel) Corn (per bushel) Deere & Company Forecast as of 21 November 2007 (Previous Forecast as of 15 August 2007) 36

1167 995 1323 1603 2100 5050 4800 4500 4100 2900 Source: Informa Forecast – November 2007 Ethanol Outlook Calls for Continued Growth U.S. Corn Used in Ethanol (millions of bushels) '02/03 '03/04 '04/05 '05/06 '06/07F '07/08F '08/09F '09/10F '10/11F '11/12F 37

Agricultural Equipment Retail Sales Industry Outlook U.S. and Canada: Up 10% - 15% for Fiscal 2008 Substantial increase in 2007 farm cash receipts Strength in large tractors and combines Weakness in cotton South America: Up 10% – 15% for Fiscal 2008 Markets recovering, supported by higher commodity prices In Brazil, uncertainties over the status of government-backed financing programs Deere & Company Forecast as of 21 November 2007 38

Farm Net Income Brazil & Argentina 1.2 0.8 0.7 Wheat -0.2 -0.1 -0.5 Rice 4.9 0.7 0.2 3.3 2006 Argentina Brazil (in billions of U.S. dollars) 7.6 5.1 7.2 6.5 -0.5 0.8 0.5 Sunflower 0.9 0.8 1.8 1.2 -1.1 Corn 1.0 2.6 3.3 Sugar Cane 0.6 0.3 -0.2 Cotton 4.7 3.0 4.0 2.5 -2.0 Soybeans 2008 Forecast 2007 Forecast 2008 Forecast 2007 Forecast 2006 Deere & Company estimates as of 21 November 2006 39 Total

 Western Europe: Flat to up slightly for Fiscal 2008 Australia: Up 5% - 10% for Fiscal 2008 Deere & Company Forecast as of 21 November 2007 Agricultural Equipment Retail Sales Industry Outlook 40

Fiscal Year 2008 Forecast Net sales projected to be up ~ 17% Growth in Central Europe and CIS, including Russia Ningbo Benye revenues of ~ $100 million (~ +1 point) Positive currency translation of ~ +1 point New products New tractor factory in Brazil Deere & Company Forecast as of 21 November 2007 Worldwide Agricultural Equipment Deere & Company Outlook 41

+267% -$3 -$11 Operating Profit* +5% Production Tonnage +35% $758 $1,027 Net Sales Change Q4 2006 Q4 2007 (in millions of dollars) Worldwide Commercial & Consumer Equipment Fourth Quarter Overview * Operating Profit impacted by: Higher SA&G expenses, mainly LESCO Higher sales volumes 42

LESCO, Inc. Acquisition closed on 7 May 2007 Income statement impact Net Sales ~ $ 345 million Q3: ~ $125 million Q4: ~ $220 million SA&G ~ $95 million Q3: ~ $35 million Q4: ~ $60 million Breakeven for year Worldwide Commercial & Consumer Equipment 2007 Overview 43

Fiscal Year 2008 Forecast Net sales projected to be up ~ 10% U.S. economic factors Housing starts Regional drought New products Across many product areas LESCO Incremental increase of ~ $350 million Deere & Company Forecast as of 21 November 2007 Worldwide Commercial & Consumer Equipment Deere & Company Outlook 44

-1% $136 $134 Operating Profit* -19% Production Tonnage -11% $1,358 $1,208 Net Sales Change Q4 2006 Q4 2007 (in millions of dollars) * Operating Profit impacted by: Lower sales volumes Improved price realization 4Q 2006 plant closing expenses Worldwide Construction & Forestry Fourth Quarter Overview 45

 U.S. housing starts at 1.1 million Non-residential spending flat at strong level U.S. GDP growth of 2.0% Deere & Company Forecast as of 21 November 2007 Worldwide Construction & Forestry Deere & Company Outlook – 2008 Assumptions 46

Fiscal Year 2008 Forecast Net sales projected to be flat Produce closer to retail demand New products Flat sales to independent rental channel Forestry Europe: Down from high levels U.S. & Canada: Down Deere & Company Forecast as of 21 November 2007 Worldwide Construction & Forestry Deere & Company Outlook 47

Fourth Quarter 2007 Net income of ~ $96 million up 9% vs. Q4 2006 Growth in credit portfolio Higher SA&G expenses Fiscal Year 2008 Forecast Net income ~ $375 million Growth in credit portfolio Deere & Company Forecast as of 21 November 2007 Credit 48

Low losses driven by strong obligor cash flows, low repossession rates and strong used equipment market Credit Loss History 49 Provision for Credit Losses / Average Owned Portfolio 0.00% 0.50% 1.00% 1.50% 2.00% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Flat 2008 Forecast  80  250  225  100  375 2007 Prior Forecast  397 Total, as reported*  96 Total, constant exchange* C&F* CCE* AG (in millions of dollars)  310  114  593 2007 Actual Deere & Company Forecast as of 21 November 2007 (Previous Forecast as of 15 August 2007) * 2007 Actual includes: CCE: ~ $165 million related to LESCO inventory and receivables C&F: A reduction of ~ $50 million related to the sale of Nortrax South Consolidated Trade Receivables & Inventory Change at 31 October: 2007 vs. 2006, 2008 vs. 2007 50

Continued strong asset management in 2007 Consolidated Trade Receivables & Inventory 20% 25% 30% 35% 40% 45% 50% 55% 60% '00 Q3 Q4 '01 Q1 Q2 Q3 Q4 '02 Q1 Q2 Q3 Q4 '03 Q1 Q2 Q3 Q4 '04 Q1 Q2 Q3 Q4 '05 Q1 Q2 Q3 Q4 '06 Q1 Q2 Q3 Q4 '07 Q1 Q2 Q3 Q4 Inventory & Receivables to Sales Prior Year Current Year 51

 Flat  double digits; more than industry  double digits; less than industry  a single digit Deere**  59% 4 WD Tractors  8% Combines  24% Flat Industry* Row-Crop Tractors Utility Tractors * As reported by the Association of Equipment Manufacturers ** As reported to the Association of Equipment Manufacturers October Retail Sales U.S. and Canada 52

2006 2007 Combines 21% 19% Row-Crop Tractors As reported to the Association of Equipment Manufacturers at 31 October – in units as a % of trailing 12 months retail sales Deere Dealer Inventories U.S. and Canada 53 1% 2%

 a single digit  a single digit Deere & Company Combines Tractors Based on EU Government Reporting of Registrations October Retail Sales Western Europe 54

 double digits First-in-the-Dirt  double digits Settlements Construction and Forestry  a single digit Commercial and Consumer Equipment Deere & Company October Retail Sales U.S. and Canada 55

10% Asia, Africa & Middle East -1% Canada 20% Western Europe 52% Central Europe & CIS 60% Central & South America -5% Asia Pacific, Australia & New Zealand Flat $12,246 $12,241 United States $19,884 $21,489 Change 2006 2007 (in millions of dollars) Net Sales by Major Markets Fiscal Years 2007 and 2006 56 Total 8% 420 441 1,565 979 1,025 674 3,889 3,248 1,588 1,605 761 691

 Fourth Quarter 2007 Up ~ $20 million vs. Q4 2006 Fiscal Year 2007 Up ~ $185 million vs. FY2006 Fiscal Year 2008 Up $150 - $175 million vs. FY2007 Deere & Company Forecast as of 21 November 2007 Raw Material and Freight Equipment Operations 57

Deere & Company Forecast as of 21 November 2007 Research & Development Expense Equipment Operations Fourth Quarter 2007 Up 15% vs. Q4 2006 Fiscal Year 2008 Forecast Up ~ 5% vs. FY2007 58

Deere & Company Forecast as of 21 November 2007 Pension & OPEB Expense Equipment Operations Fiscal Year 2008 Forecast Down ~ $125 million vs. FY2007 Cost of Sales: ~ 60% SA&G: ~ 40% Resulting from Higher discount rate Asset growth and performance 59

Fourth Quarter 2007 Up 29% vs. Q4 2006 Includes ~ 17 points related to global growth initiatives (including LESCO) and currency translation Fiscal Year 2008 Forecast anticipates up ~ 5% vs. FY2007 Deere & Company Forecast as of 21 November 2007 Selling, Administrative & General Expense Equipment Operations 60

Fiscal Year 2007 Effective tax rate of ~ 33% Fiscal Year 2008 Forecast Assumes a tax rate of ~ 35% Deere & Company Forecast as of 21 November 2007 Tax Rate Equipment Operations 61

Share Repurchase as Part of Publicly Announced Plans Total $ Amount (in billions) Shares Repurchased (in millions) Actual $0.2 2004 $3.9 46.7 Total $1.5 12.8 2007 $1.3 17.0 2006 $0.9 13.9 2005 Note: All data on a pre-split basis 62 31 Oct 2007 period ending shares: 219.8 million 3.0

Equipment Operations Capital Expenditures $575 million Depreciation and Amortization $429 million Pension/OPEB Contributions $511 million Financial Services Capital Expenditures – wind $448 million Other Information Fiscal Year 2007 63

Equipment Operations Capital Expenditures $600 - $700 million Depreciation and Amortization ~ $450 million Pension/OPEB Contributions ~ $300 million Financial Services Capital Expenditures – wind ~ $550 million Other Information Fiscal Year 2008 Forecast Deere & Company Forecast as of 21 November 2007 64

Appendix 65

Additional Supplemental Information SFAS 158 – Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans 66 In the Fourth Quarter of 2007, Deere & Company adopted SFAS 158. The standard requires recognition of the over-funded or under-funded status of pension and other postretirement benefit plans on the balance sheet. The offset to the additional asset or liability is recorded to equity. The adoption of SFAS 158 reduced Deere stockholders’ equity at October 31, 2007 by approximately $1.1 billion, net of tax. The pronouncement did not affect the results of operations.

Additional Supplemental Information Stock Split – Fiscal Year 2007 455.0 227.5 $4.00 $8.01 2007 448.1 224.1 $0.94 $1.88 Q4 453.6 226.8 $1.18 $2.37 Q3 458.6 229.3 $1.36 $2.72 Q2 459.7 229.8 $0.52 $1.04 Q1 Proforma Stock Split As Reported Proforma Stock Split As Reported As reported and as adjusted to reflect stock split: (shares in millions) 67 Diluted Earnings Per Share Diluted Average Shares Outstanding

NOTE: Due to the magnitude of the amounts for the items listed above either in the quarter or for the year, management believes the above additional supplemental data provides valuable insight into the operating performance for fiscal year 2006. Management believes this presentation will enhance the reader’s understanding of the impact of these items on Deere & Company’s performance during the year. Management does not intend this presentation to be considered in isolation or as a substitute for the related measures under accounting principles generally accepted in the U.S. $290.3 13.6 -- 276.7 (.6) $277.3 Q4 $438.9 3.2 -- 435.7 (.3) $436.0 Q3 $6.47 $1,525.0 $564.0 $231.8 Income from continuing operations, excluding special items .12 27.6 2.8 7.9 Canadian factory closing .19 44.2 44.2 -- Debt securities tender offer Other special items: 6.16 1,453.2 517.0 223.9 Income from continuing operations (1.02) (240.6) (227.6) (12.0) Income from discontinued operations (Health Care) $7.18 $1,693.8 $744.6 $235.9 Net income Diluted EPS Fiscal Year Q2 Q1 Additional Supplemental Information Fiscal Year 2006 68

Deere’s first-quarter 2008 conference call is scheduled for 9:00 a.m. central time on Wednesday, February 13, 2008 69