John Deere IT4 Power Solutions. June 24, 2010
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1 John Deere IT4 Power Solutions June 24, 2010
2 Welcome Representing John Deere for today s Webcast: Barry Nelson Manager, Media Relations Geoff Stigler Product Marketing Manager, JDPS Steve Meinzen Emissions Technology Integration Manager Rachelle Thibert Emissions Technology Manager Susan Karlix Manager, Investor Communications Important Web link for images, videos, and additional information: 2
3 Safe Harbor Statement & Disclosure This call and accompanying material include forward-looking comments and information concerning the company s plans and objectives for the future, including estimates and assumptions with respect to technological and other factors that impact our businesses and customers. Words such as expected, estimated, will, plan, anticipate, intend, believe, or other similar words or phrases often identify forward-looking statements. Actual results may differ materially from those projected in these forwardlooking 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 10-Q and Form 10-K reports 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. 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. The call and accompanying materials are not an offer to sell or a solicitation of offers to buy any of the company s securities. 3
4 Interim Tier 4 Engine Solutions Geoff Stigler Product Marketing Manager - John Deere Power Systems IT4 Emissions Regulations Deere IT4 Solutions John Deere Value Proposition The Right Technology. Right Now. 4
5 U.S. and European Emissions Regulations Interim Tier 4/Stage IIIB -90% -45% -80% 5
6 Interim Tier 4 Technology PM & NOx Emissions Reduction Alternatives Particulate Matter (PM) Reduction 1) Combustion Process In-Cylinder High Pressure Fuel System Multiple Injection Engine Timing Power Cylinder Optimization 2) Exhaust Filter with DOC/DPF 3) Combination Solution In-Cylinder Solution Exhaust Filter Oxides of Nitrogen (NOx) Reduction 1) Cooled EGR 2) Selective Catalytic Reduction (SCR) 6
7 Interim Tier 4 Technology PM & NOx Emissions Reduction Alternatives Cooled EGR and Exhaust Filter Selective Catalytic Reduction (SCR) 7
8 Interim Tier 4 Technology PM & NOx Emissions Reduction Alternatives Cooled EGR and Exhaust Filter Selective Catalytic Reduction (SCR) Cooled EGR system EGR cooler EGR valve SCR system SCR catalyst DEF tank DEF filter DEF sensors that monitor tank temperature and measure tank level Urea heating elements NOx sensor Variable Geometry Turbocharger (VGT) or Series Turbochargers (VGT & Fixed) Exhaust filter (DOC & DPF) Intake throttle valve Fixed geometry turbocharger In-cylinder solution Single fluid (diesel) Two fluids (diesel fuel & DEF) 8
9 Interim Tier 4 Technology PM & NOx Emissions Reduction Alternatives Cooled EGR and Exhaust Filter Selective Catalytic Reduction (SCR) Cooled EGR system EGR cooler EGR valve SCR system SCR catalyst DEF tank DEF filter DEF sensors that monitor tank temperature and measure tank level Urea heating elements NOx sensor Variable Geometry Turbocharger (VGT) or Series Turbochargers (VGT & Fixed) Exhaust filter (DOC & DPF) Intake throttle valve Fixed geometry turbocharger In-cylinder solution Single fluid (diesel) Two fluids (diesel fuel & DEF) 9
10 Preference Modeling Results: 174hp Preference Index % US / Agriculture US / Construction John Deere Independent Research EGR SCR 10
11 Interim Tier 4 Engine Technology The PowerTech TM Interim Tier 4 Solution PM Reduction (90%) with Exhaust Filter NOx Reduction (45%) with Cooled EGR 11
12 Interim Tier 4 High Pressure Fuel Systems Background Electronic - multiple fuel injections High pressure injection atomizes fuel into finer particles which burn more completely and reduce PM Deere fuel systems are the first step in equipment integrated for fuel economy Interim Tier 4 Increase HPCR injection pressures up to 2000 bar (29,000 psi) 6.8L, & 9.0L Engines Increase EUI injection pressures up to 2275 bar (33,000 psi) 13.5L engine Deere fuel systems optimize fuel economy, reducing operating costs 12
13 Interim Tier 4 Cooled EGR System Background Tier 3 Platform uses 10-15% EGR flow rates NOx formation occurs during high combustion temperatures EGR lowers oxygen levels during combustion, lowering combustion temps Cooling of EGR flow also helps to lower combustion temps Interim Tier 4 Increasing EGR flow rates to 20-30% to further reduce NOx levels Optimized combustion from precise measurement of EGR flow rates The ECU is a key enabler of accurate EGR valve actuation, measurement and emissions control Deere s EGR systems enable a single fluid IT4/S3B solution 13
14 Interim Tier 4 Naming PowerTech M 2.4L PowerTech E 2.4L PowerTech PVX 9.0L Displacement Exhaust Filter X Diesel Oxidation Catalyst (DOC) & Diesel Particulate Filter (DPF) Turbocharger S Series (VGT & Fixed) V Variable Geometry Turbocharger (VGT) W Wastegate F Fixed Technology P Plus E Electronic M Mechanical Plus Engine 4-Valve Cooled Exhaust Gas Recirculation (EGR) Electronic Engine Controls High-Pressure Common-Rail (HPCR) or Electronic Unit Injector (EUI) Fuel System Electronic Engine 2-Valve Electronic Engine Controls Electronic Unit Pump (EUP) Fuel System Mechanical Engine 2-Valve Mechanical Engine Controls Mechanical Unit Pump (MUP) Fuel System 14
15 Interim Tier 4 Technology Cooled EGR optimized flow measurement Exhaust Filter with DOC/DPF Passive & Active filter cleaning External Hydrocarbon Dosing System Exhaust Temperature Management PVX Variable Geometry Turbocharger (VGT) PSX - Series Turbocharging Variable Geometry Turbocharger (high pressure) Fixed Geometry Turbocharger (low pressure) High Pressure Fuel Systems Four-Valve Cylinder Head Electronic Control Unit (ECU) with Aftertreatment Controls Deere designed a simpler, more convenient IT4/S3B solution 15
16 Interim Tier 4 Engine Technology The PowerTech TM Interim Tier 4 Solution Cooled EGR for NOx Reduction The Simple Solution Cooled EGR provides customers with a simple solution for IT4 Single fluid solution simplifies operator involvement Monitor and fill only one tank with diesel fuel Eliminates all DEF availability and storage concerns No DEF freezing or degradation concerns No de-rate issues for EGR that are associated with SCR Cooled EGR First PowerTech Plus engines adopted cooled EGR technology for T3/Stage IIIA Cooled EGR technology is an important building block in meeting the requirements for Interim and Final Tier 4 emissions standards Deere 9.0L is the first engine to be IT4/Stage 3B Certified Current IT4 Customer Equivalent Hours - 240,000 Engine 42,000 Vehicle (>174hp only) 16
17 The Right Technology. Right Now. Steve Meinzen Emissions Tech Integration Manager The John Deere IT4/Stage III B advantage is clear: A simple solution A field proven solution An integrated equipment solution A fuel efficient solution A fully supported solution Customer Preferred Technology Fully Validated 17
18 18 Integrated Vehicle
19 19 A Fuel Efficient Solution
20 Medium to Heavy Pulling Loads 20
21 Medium-Duty Loads at Reduced Engine RPM 21
22 Fuel Efficiency at 75% of Pull, Maximum Power HP-hr/gal John Deere 8320R ( hp) Company A -1 Company A-2 Company B-1 Company B-2 Results from Nebraska Tractor Test Lab 22
23 Fuel-Efficiency 75% of Pull, Reduced Engine Speed HP-Hr/Gal John Deere 8320R ( hp) Company A-1 Company A-2 Company B-1 Company B-2 Results from Nebraska Tractor Test Lab 23
24 Dealer Tools Customize Solutions for Customer Rachelle Thibert Emissions Technology Manager Service ADVISOR Engine Control Unit (ECU) Downloads Interpretation of the customer specific data Recommendations about improvement opportunities Product Operation Product Specifications Product Combinations 24
25 Example - A specific Customer Vehicle - Tractor 295 engine hours (903 gal. fuel consumed) 25
26 Percent of Time at Various Speeds and Loads 26
27 Power Curve/Fuel Map 27
28 28
29 29
30 Dealer Communication about Interim Tier 4 Multiple touch points with dealers including Printed announcements Live virtual meetings Webinars Dedicated website repository for 24 hour access to information Field Manager support Dealer Readiness Program 30
31 31
32 Dealer Engagement on Interim Tier 4 Training Opportunities John Deere University currently offers more than 200 classes in more than 12 languages to dealers all over the world dealing with emissions related topics Training covers a broad range of topics from emission compliance regulations to service and repair of all emission related components to maintenance requirements To date, more than 26,000 training hours have been delivered to US and Canadian Ag dealer personnel 32
33 The Right Technology. Right Now. The John Deere IT4/Stage III B advantage is clear: A simple solution A field proven solution An integrated equipment solution A fuel efficient solution A fully supported solution Customer Preferred Technology Fully Validated 33
34 John Deere Interim Tier 4 Engine Solutions Questions? 34
35 Other Resources Phone number for call back interviews following the Webcast: Important Web link for images, videos, and additional information: 35
36 36
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