CEO Business Overview. March 2017

Transcription

1 CEO Business Overview March

2 Safe Harbor Statement & Disclosures This presentation includes forward-looking comments subject to important risks and uncertainties. It may also contain financial measures that are not in conformance with accounting principles generally accepted in the United States of America (GAAP). Refer to Deere s reports filed on Forms 8-K (current), 10-Q (quarterly), and 10-K (annual) for information on factors that could cause actual results to differ materially from information in this presentation and for information reconciling financial measures to GAAP. Past performance may not be representative of future results. Guidance noted in the following slides was effective as of the company s most recent earnings release and earnings call (17 February 2017). Nothing in this presentation should be construed as reaffirming or disaffirming such guidance. This presentation is not an offer to sell or a solicitation of offers to buy any of Deere s securities. 2

3 Table of Contents Slide Fiscal 2016 Review 4 Fiscal 2017 Forecast 9 John Deere Strategy 12 Supplemental Information Foundational Success Factors 27 Global Markets 37 John Deere Financial Services 48 Agriculture Fundamentals 53 Construction & Forestry Fundamentals 60 Appendix 63 3

4 4 Fiscal 2016 Review

5 Fiscal 2016 Review Equipment Operations ($ millions except where noted) Fiscal 2016 Net Sales $23,387 Net Income (attributable to Deere & Company) $1,524 Cash Flow (from operations) $2,906 OROA* 14.4% SVA** $310 * Operating Return on Operating Assets ** Shareholder Value Added; for reconciliation to GAAP see SVA* Reconciliation to GAAP slide in Appendix 5

6 Net Sales by Product Category Equipment Operations Fiscal 2016 Agriculture & Turf $18.5 billion Construction & Forestry $4.9 billion Turf Large Ag Compact Other Forestry Small Ag Construction 6

7 Net Sales and Net Income Deere & Company Much-improved performance vs. prior downturns $40 $4 $30 U.S. & Canada Large Ag* Industry Decline ~ 60% ~ 24% ~ 35% ~ 60% $3 Deere Net Sales Decline ~ 35% ~ 16% ~ 19% ~ 33% $ Billions $20 $10 Net Income Decline (attributable to Deere & Company) ~ 191% ~ 91% ~ 77% ~ 57% $2 $1 $ Billions $0 $0 -$ $1 Net Sales Net Income * Tractors > 220 hp and combines Source: Association of Equipment Manufacturers, October

8 Net Sales and Diluted EPS Deere & Company Much-improved EPS* performance vs. prior downturns $40 $10 $30 $8 $ Billions $20 $10 $5 $3 Per Share $0 $0 -$ $3 Net Sales Diluted EPS * Earnings Per Share 8

9 Fiscal 2017 Forecast 9

10 Fiscal 2017 Forecast Equipment Operations ($ billions except where noted) Fiscal 2017 Forecast Net Sales ~ 4% Price realization Currency translation ~ 1 point ~ Flat Net Income (attributable to Deere & Company) ~ $1.5 Cash Flow (from operations) ~ $2.6 Source: Deere & Company forecast as of 17 February

11 Fiscal 2017 Forecast Agriculture & Turf Deere worldwide net sales up ~ 3% U.S. and Canada ag industry down 5-10% EU 28 ag industry down ~ 5% South America ag (tractors and combines) industry up 15-20% Construction & Forestry Deere worldwide net sales up ~ 7% Generally slow economic growth worldwide Worldwide forestry industry flat to down 5% John Deere Financial Net income attributable to Deere & Company of ~ $480 million Source: Deere & Company forecast as of 17 February

12 12 John Deere Strategy

13 Long-Term Macroeconomic Tailwinds Still Intact Population growing in size and affluence By 2050, world population will reach ~ 9.7 billion, up from ~ 7.3 billion today Most growth in Asia and Africa Large middle class emerging in China, India and other parts of Asia Opportunity #1: Feeding the world Agricultural output needs to nearly double over the first half of the century Natural resources under strain, especially water and land Opportunity #2: Massive urbanization Migration from rural areas creates need for infrastructure development By 2050, nearly 70% of the global population will live in urban areas, up from more than 50% today Source: UN,

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15 Our Aspirations Growing revenue at a faster rate than our competitors Explanation of Relative Growth Metric 7 enterprise competitors 4 primary agriculture peers 2 primary construction peers 1 primary turf peer Excluded competitor segments not comparable to Deere Objective to outgrow median Revenue measured quarterly Performance metric: comparison of last 4 quarters Health metric: comparison of last 3 and 5 years 15

16 16 Critical Success Factors

17 Precision Ag Today s machines are more productive Greater productivity emerges with added technology Bigger Faster Stronger Easier Smarter More Precise 17

18 Equipment + Precision Ag Technology Large Ag Equipment Core Precision Ag Technologies Digital Solutions JDLink Connect Mobile Data Transfer Harvest Mobile John Deere Operations Center AutoTrac HarvestLab Rate Controller MyOperations API s Premium Activation Doc & Section Control Machine Sync & Coverage Map Sharing MyAnalyzer 18

19 Innovative New Products Precision Ag John Deere Operations Center Launch Field Analyzer helps the grower to learn performance over time MyOperations and MyAnalyzer apps allow better management of farm information MyJobConnect & MyJobConnect Premium Solution Intuitive and professional work-order management system for contractor job optimization on multi-color fleets First ag navigation system including tools for harvest logistics optimization on multi-color fleets StarFire 6000 Receiver with SF3 Signal and Real Time Kinematic Accuracy levels improve by 40% with SF3 signal to +/-3 cm Flexible RTK mitigates the effects of scintillation by enabling longer periods of time for uptime performance 19

20 Precision Ag Equipment + Technology + Services Better machine performance Better job performance Better agronomic decisions Ensure machines function as expected Maximize machine performance Increase operator consistency Achieve quality outcomes for each job Coordinate machines to execute jobs more effectively and efficiently Monitor job progress and adjust operational plans See, collaborate and direct information when needed and where needed with an online set of tools Automate collection and transfer of data from the machine to platform 20

21 Acquisition and Joint Venture Monosem Accelerates European market reach in precision planting equipment and adds engineering expertise Acquisition completed 3 February 2016 Hagie Manufacturing Allows market entrance into high-clearance spraying equipment that extends window for applying nutrients Joint Venture announced 29 March 2016 Deere acquired 80% ownership of Hagie Manufacturing 21

22 Innovative New Products Large Ag Equipment 4-Series Sprayers AutoTrac Vision and RowSense, industry-leading vision and feeler guidance solutions extend capabilities in the growing season Industry-unique carbon fiber boom increases performance and uptime without weight or fuel penalties S-Series Combines Capacity Update ConnectedCombine package boosts capacity up to 20% through remote machine optimization New large DynaFlo Plus Cleaning Shoe including Active Terrain Adjustment which automatically adjusts the combine in hilly terrain CH570/670 Cane Harvesters 20% more productive with 12% less fuel consumption Improved cleaning, new operator interface and integrated with Precision Ag capabilities 22

23 Innovative New Products Tractors 8400R Tractors New top model in the 8R Series delivering higher maximum drawbar performance, enabling our customers to pull faster/wider implements In testing, demonstrated a world record in terms of fuel consumption in field and transport applications 6230R / 6250R Tractors 2 new flagship models out of the factory in Mannheim, Germany Designed with high Power Density and new CommandPRO driving strategy to deliver the highest performance and comfort in transport applications Large Chassis 2R Series Tractors 2 models; 32 engine horsepower and the new 38 engine horsepower tractor provides optimum productivity and operator comfort Industry-exclusive features; AutoConnect and CommandCut along with new 220R loader and 260B backhoe 23

24 Innovative New Products Small Ag, Turf and Utility Equipment F441R and C441R Series Balers Best-in-class Fixed Chamber Baler Multicrop capacity ready to bale in all crop types, from very wet to very dry conditions 9009A Terrain Cut Mower Superior cut control and cut quality; industry-leading side-hill capacity LoadMatch Power management Best-in-class operator station for noise, accessibility and control XUV 590i Superior operator ergonomics Improved performance 57% more speed Best-in-class operator station for noise vibration and harshness 24

25 Innovative New Products Construction Equipment 700K/750K/850K SmartGrade TM Crawler Dozer Factory installed, fully integrated, mastless 3D grade control system with the exclusive John Deere Auto SmartGrade TM feature to improve grade control efficiency on the job 844K-III Aggregate Handler A true two-pass configuration that can easily load 24 tons of processed aggregates in two passes instead of three, cutting customer loading times by 30% over the standard 844K-III G-series Skid Steer & Compact Track Loaders Broadens the line-up of Skid Steers & Compact Track Loaders by providing two new value-spec models for rental and export markets, and seven premium models designed to meet ag, construction and landscaper needs 25

26 Innovative New Products Forestry Equipment G-Series Forestry Swing Machines Increased engine power and hydraulic flow, coupled with a larger cooling system, to provide increased durability and uptime Completely redesigned, climate controlled cab equipped with fatiguereducing features to boost operator productivity during long shifts 1910G Forwarder Building off the industry s first and highly innovative Intelligent Boom Control, IBC 2.0 introduces new productivity-enhancing features such as intelligent Slew Control New electrical system for improved durability and uptime 1270G/1470G Harvester 8 wheel drive (8WD) technology ideally suited to high-productivity harvesting on steep slope and soft ground conditions New electrical system for improved durability and uptime 26

27 27 Foundational Success Factors

28 Exceptional Operating Performance - OROA Equipment Operations 14.4% OROA* in % % 20% % % 10% 12% % OROA (SVA** Neutral) % % 80% 100% 120% % of Mid-Cycle Volume * Operating Return on Operating Assets ** Shareholder Value Added; for reconciliation to GAAP see SVA* Reconciliation to GAAP slide in Appendix 28

29 Exceptional Operating Performance SVA Equipment Operations $310 million SVA* in 2016 $4,000 Adoption of SVA Model $3,000 $2,000 $ Millions $1,000 $0 -$1,000 -$2, * Shareholder Value Added; for reconciliation to GAAP see SVA* Reconciliation to GAAP slide in Appendix 29

30 Exceptional Operating Performance Net Cash Flow Equipment Operations $2.9 billion Net Cash Flow in 2016 $5,000 Adoption of SVA* Model $4,000 Sale of Trade Receivables to John Deere Financial $ Millions $3,000 $2,000 $1,000 $ * Shareholder Value Added Note: Over $8 billion in Pension/OPEB contributions from

31 Asset Management Receivable level in 2016 lower than 1998, with 2x the sales Trade Receivables and Net Sales Quarterly Receivables & Inventory as a % of Previous 12 Months Sales $25,000 60% $20,000 50% $ Millions $15,000 $10,000 40% 30% 20% $5,000 10% $0 Trade Receivables Net Sales 0% Current Year Prior Year 31

32 Investment in New Products and Technologies Consistently spending at or above competition on technology and innovation R&D as Percent of Net Sales $1,800 8% $ Millions $1,500 $1,200 $900 $600 $300 6% 4% 2% $ Deere R&D $ Deere % Competitor A % Competitor B % 0% Source: Deere & Company and competitor SEC filings 32

33 Deere Use-of-Cash Priorities Cash from Operations Committed to A Rating Manage the balance sheet, including liquidity, to support a rating that provides access to low-cost and readily available short- and long-term funding mechanisms Reflects the strategic nature of our financial services operation Fund Operating and Growth Needs Fund value-creating investments in our businesses Common Stock Dividend Consistently and moderately raise dividend targeting a 25%-35% payout ratio of mid-cycle earnings Share Repurchase Consider share repurchase as a means to deploy excess cash to shareholders, once above requirements are met and repurchase is viewed as value-enhancing 33

34 Deere Quarterly Dividends Declared 1Q Q 2017 Dividend raised 114% since 2010 $0.70 $0.60 $0.60 $0.50 $0.40 $0.30 $0.20 $0.28 $0.10 $0.00 $ * * Adjusted for 2 for 1 stock split on 26 November

35 Share Repurchase As Part of Publicly Announced Plans 36% net share reduction since Q 2017: Cumulative cost of repurchases $16.4 billion Shares repurchased million Average repurchase price $66.96 December 2013 authorization of $8 billion: Amount remaining $3.3 billion Millions of Shares* Share Repurchase $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $ Billions 29 January 2017 period ended basic shares million 1Q 2017 average diluted shares million YTD Shares Repurchased Amount Spent $0.0 * All shares adjusted for two-for-one stock split effective 26 November

36 Sources and Uses of Cash Fiscal Equipment Operations $50,000 $40,000 $835 ~ 62% of cash from operations returned to shareholders = Source of Cash = Use of Cash $10,060 $ Millions $30,000 $20,000 $34,488 $1,325 $3,102 $7,084 $10,000 $14,427 $473 $0 $4,287 $3,141 Beginning Cash & Cash Equivalents (Fiscal 2004) Cash From Operations Divestitures, net of Acquisitions Capital Expenditures Investment in Financial Services Net Change in Debt and Intercompany Balances Dividends Share Repurchase, net of Common Stock Issuances Other* Ending Cash & Cash Equivalents (Fiscal 2016) * Other includes proceeds from maturities and sales of marketable securities and purchases of marketable securities and reconciliation for non-cash items including excess tax benefits from share-based compensation and the effect of exchange rates on cash and cash equivalents Source: Deere & Company SEC filings 36

37 37 Global Markets

38 Net Sales by Major Markets Equipment Operations U.S. & Canada* $20.8 $21.8 $20.2 $14.8 $17.4 $16.6 $14.4 Western Europe Latin America $3.4 $4.4 $4.3 $4.4 $4.4 $3.3 $3.2 $2.6 $3.6 $3.6 $4.3 $4.1 $2.4 $ Asia, Africa & Middle East $1.4 $1.9 $2.1 $2.1 $2.0 $1.9 $1.5 Central Europe & CIS $0.7 $1.4 $1.7 $1.6 $1.4 $1.0 $1.3 Asia Pacific, Australia & New Zealand $0.6 $0.8 $1.0 $0.8 $0.8 $0.6 $ $ Billions * U.S. & Canada not to scale with other markets

39 U.S. and Canada Factory Locations British Columbia, Canada Log Loaders & Specialty Products Alberta, Canada Remanufactured Components North Dakota, USA Air Seeding Equipment Electronics Tillage Equipment Wisconsin, USA Lawn & Garden Equipment Utility Vehicles Golf & Turf Reel Mowers Iowa, USA Cotton Harvesting Equipment Planting Equipment Spraying Equipment Tillage Equipment Ag Tractors Components Foundry Engines Hay & Forage Equipment Articulated Dump Trucks 4WD Loaders Motor Graders Skidders Wheeled Feller Bunchers Backhoes Compact Tracked Loaders Crawler Dozers High-Speed Dozers Knuckleboom Loaders Skid Steer Loaders Tracked Feller Bunchers Tracked Harvesters High Clearance Sprayers (JV) Illinois, USA Combine Harvesters Headers Planting Equipment Hydraulic Cylinders Tennessee, USA Lawn Tractors North Carolina, USA Commercial Mowers Golf & Turf Mowers Utility Vehicles Hydraulic Excavators Georgia, USA Utility Tractors Compact Utility Tractors California, USA Satellite Receivers Kansas, USA Power Transmission Equipment Missouri, USA Remanufactured Components Louisiana, USA Sugarcane Harvesting Equipment Tractor Loaders Scrapers Cotton Strippers 39

40 EU 28 Factory Locations Horst, The Netherlands Spraying Equipment Joensuu, Finland Wheel Forwarders Wheel Harvesters Forestry Attachments Saran, France Engines Stadtlohn, Germany Headers Largeasse, France Planting Equipment Gummersbach, Germany Walk-Behind & Autonomous Mowers Arc-les-Gray, France Balers Ag Loaders Bruchsal, Germany Tractor & Harvesting Cabs Mannheim, Germany Tractors Madrid, Spain Components Zweibrücken, Germany Combines & Forage Harvesters 40

41 Brazil Factory Locations Catalão, Brazil Sugarcane Harvesters Sprayers Horizontina, Brazil Combine Harvesters Planters Indaiatuba, Brazil Backhoe Loaders 4WD Loaders Motor Graders Excavators (JV) Montenegro, Brazil Tractors 41

42 CIS Factory Locations Domodedovo, Russia Tractors Combine Harvesters Motor Graders Orenburg, Russia Seeding Equipment Tillage Equipment 42

43 China Factory Locations Jiamusi, China Combine Harvesters Corn Pickers Cotton Pickers Tianjin (TEDA), China 4WD Loaders Excavators Engines ( hp) Tractors ( hp) Ningbo, China Tractors (28-55 hp) Cane Harvesters 43

44 India Factory Locations Sirhind, India Combine Harvesters Pune, India Engines Transmissions Tractors (36-75 hp) Electronics Dewas, India Tractors (36-50 hp) 44

45 Other Regions Factory Locations Ramos, Mexico Ag Loaders Compact Utility Tractor Loaders Utility Tractor Cabs Hydraulic Cylinders Monterrey, Mexico Rotary Cutters Implements Components Kibbutz Beit Hashita, Israel Cotton Picker Components Torreon, Mexico Axles Engines Electronics Saltillo, Mexico Ag Tractors Transaxles Rosario, Argentina Engines Tractors Combines Tokoroa, New Zealand Forestry Harvester Heads 45

46 Worldwide Parts Services Supporting the Growth of Our Equipment Operations Highlights: China footprint Strategic distribution locations to support China market, operational 2016 Campinas, Brazil Expansion of existing facility, operational March 2015 Nagpur, India India Parts Distribution Center, opened November 2014 Anchor Parts Distribution Centers Regional Parts Distribution Centers or Depots 46

47 Engine Emissions 2017 Worldwide Off-Road Emissions Regulations > 75 hp U.S. and Canada Final Tier 4 EU28* Stage V starting 2019 Russia Ag tractors: Stage II China China NR III India TREM 3A >50hp Stage II/Tier 2 Stage IIIA/Tier 3/TREM 3A/MAR 1/China NR III Stage IV/Final Tier 4 (> hp) Brazil MAR 1: Construction equipment Ag equipment >100hp * Includes some non-eu28 countries that follow EU28 emissions regulations 47

48 48 John Deere Financial Services

49 John Deere Financial Services Supporting the Growth of Our Equipment Operations Owned Operations Bank/Finance Company Partners Retail programs through JDF not currently offered 49

50 John Deere Financial Services Consistent earnings throughout the cycle $4,000 Net Income $3,000 $ Millions $2,000 $1,000 $0 -$1,000 -$2, John Deere Financial (attributable to Deere & Company) Deere & Company 50

51 John Deere Financial Services $38.1 billion Net Owned Portfolio as of 31 October 2016 Portfolio Composition by Segment Portfolio Composition by Geography Portfolio Composition by Product C&F 15% Latin America 6% Australia 3% Asia 1% Operating Lease 16% Europe 5% Canada 10% Revolving Credit 8% A&T 85% U.S. 75% Wholesale/ Floorplan 19% Installment and Finance Lease 57% Note: Information above includes all Deere & Company lending activities worldwide. John Deere Capital Corporation is the largest lending operation of Deere & Company. 51

52 John Deere Capital Corporation Continued extremely low write-offs in Agriculture & Turf and Construction & Forestry Agriculture & Turf* Construction & Forestry 4.0% 4.0% 3.0% 3.0% 2.0% 2.0% 1.0% 1.0% 0.0% 0.0% -1.0% % Net Write-offs (Ag) Installments 60+DPD (Ag) Net Write-offs (C&F) Installments 60+DPD (C&F) * includes construction; includes lawn & grounds care; 2009 forward includes ag & turf equipment; as % of owned losses after dealer reserve charges Source: internal reporting, JDCC 10-K filings, internal reporting 52

53 53 Agriculture Fundamentals

54 Global Stocks-to-Use Ratios 60% 120% 50% 100% 40% Wheat Cotton 80% 30% 20% Corn Soybeans 60% 40% Cotton Ratios 10% 20% 0% P 0% Source: USDA, 9 February

55 Global Grain Supply and Demand 3,000 2,500 Million Metric Tons 2,000 1,500 1, /93 94/95 96/97 98/99 00/01 02/03 04/05 06/07 08/09 10/11 12/13 14/15 16/17 Production Consumption Source: USDA, 9 February

56 Global Grain Demand With and Without Biofuel Use 3,000 3,000 Million Metric Tons 2,000 1,000 Million Metric Tons 2,000 1, F F Consumption with biofuel use Consumption without biofuel use * Compound Annual Growth Rate Source: OECD-FAO Agricultural Outlook , July

57 U.S. Farm Cash Receipts $500 $400 $ Billions $300 $200 $100 $ F Crops Livestock Government Payments Source: : USDA, 7 February F 2017F: Deere & Company forecast as of 17 February

58 U.S. Farm Balance Sheet $3,500 30% $3,000 $2,500 25% $ Billions $2,000 $1,500 20% $1,000 15% $500 $0 10% F Farm Debt Farm Equity Debt to Equity Ratio (%) Debt to Asset Ratio (%) Source: : USDA, 7 February F 2017F: Deere & Company forecast as of 17 February

59 U.S. Corn Supply and Use Scenario 1: Scenario 2: 25-year trend yield would result in ~ 3% yield reduction from 2016/17 forecast and ending stocks of ~ 1.9 billion bushels Drought conditions similar to 2012 would result in ~ 26% yield reduction from 2016/17 forecast 2012/ / / /16 Estimate 2016/17 Forecast 2017/18 Scenario /18 Scenario 2 Area Planted (million acres) Area Harvested (million acres) Yield (bushels/harvested acre) ~ 3% ~ 26% Total Supply (million bushels) 11,904 14,686 15,479 15,400 17,013 Total Use (million bushels) 11,083 13,454 13,748 13,662 14,610 Ending Stocks (million bushels) 821 1,232 1,731 1,738 2,403 1,852 0 Stocks/Use Ratio 7.4% 9.2% 12.6% 12.7% 16.4% Average Farm Price ($/bushel) $6.89 $4.46 $3.70 $3.61 $3.30 Source: 2012/ /17: USDA, 9 November /18: Illustrative scenarios, not USDA forecasts 59

60 60 Construction & Forestry Fundamentals

61 U.S. Housing Starts Millions of Units F Multi-Family Housing Starts Single-Family Housing Starts Source: : U.S. Census Bureau, January F 2017F: Deere & Company forecast as of 17 February

62 U.S. Construction Spending $ Billions* $2,400 $2,000 $1,600 $1,200 $800 $400 60% 40% 20% 0% -20% -40% -60% -80% -100% -120% -140% % Total Construction Spend $0-160% F Government Infrastructure Investment Nonresidential Investment in Structures * 2009$ base Source: : U.S. Bureau of Economic Analysis, January F 2017F: Deere & Company forecast as of 17 February 2017 Government Investment in Structures Residential Investment in Structures 62

63 63 Appendix

64 SVA* Reconciliation to GAAP Equipment Operations ($ millions except where noted) Net Sales 6,479 7,663 8,830 9,640 11,082 11,926 9,701 11,169 11,077 11,703 13,349 17,673 Average Identifiable Assets With Inventories at LIFO With Inventories at Standard Cost 5,449 6,442 5,551 6,494 6,187 7,131 6,502 7,488 6,682 7,703 7,672 8,711 7,724 8,739 8,069 9,039 8,743 9,678 6,229 7,147 5,965 6,925 6,482 7,477 Operating Profit Percent of Net Sales % % 1, % 1, % 1, % 1, % % % (46) (0.4%) % % 1, % Operating Return on Assets With Inventories at LIFO With Inventories at Standard Cost 4.4% 3.8% 15.3% 13.0% 16.3% 14.1% 17.3% 15.0% 21.0% 18.2% 19.3% 16.9% 3.5% 3.1% 8.6% 7.7% (0.5%) (0.5%) 6.4% 5.6% 11.9% 10.2% 29.4% 25.5% SVA Cost of Assets (773) (780) (856) (898) (924) (1,045) (1,049) (1,085) (1,162) (858) (831) (897) SVA (531) (776) (392) (1,208) (457) (123) 1,008 ($ millions except where noted) Net Sales 19,401 19,884 21,489 25,803 20,756 23,573 29,466 33,501 34,998 32,961 25,775 23,387 Average Identifiable Assets With Inventories at LIFO With Inventories at Standard Cost 7,248 8,312 7,546 8,634 8,092 9,205 9,652 10,812 9,647 10,950 9,196 10,494 11,516 12,875 13,594 14,965 14,569 15,924 14,113 15,493 12,491 13,840 11,816 13,092 Operating Profit Percent of Net Sales 1, % 1, % 2, % 2, % 1, % 2, % 3, % 4, % 5, % 4, % 2, % 1, % Operating Return on Assets With Inventories at LIFO With Inventories at Standard Cost 25.4% 22.2% 25.2% 22.1% 28.6% 25.2% 30.3% 27.1% 14.1% 12.5% 31.6% 27.7% 33.3% 29.8% 32.3% 29.4% 34.7% 31.8% 30.4% 27.7% 17.4% 15.7% 15.9% 14.4% SVA Cost of Assets (998) (1,036) (1,094) (1,284) (1,301) (1,259) (1,545) (1,795) (1,911) (1,860) (1,661) (1,570) SVA ,224 1, ,650 2,294 2,602 3,147 2, * Shareholder Value Added 64

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