Cnh Industrial N.v. · NYSE:CNH
Cnh Industrial — Q4 2021 Earnings Presentation
45 slides from Cnh Industrial's earnings presentation, Feb 8, 2022
Slide 1: FY & Q4 2021 Results Review
CNHI | FY & Q4 2021 Results Review February 8, 2022
Slide 2: Safe Harbor Statement and Disclosures
Safe Harbor Statement and Disclosures 2 All statements other than statements of historical fact contained in this presentation including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss)
Slide 3: CNH Industrial | Key Results
Pre-Demerger CNH Industrial | Key Results 3 Net Sales of Industrial Activities, $bn Adj EBIT Margin, % 31.6 6.7% 26.1 5.3% 24.3 2.3% 3.1 / 2.9% CNH Industrial 2.8 / 1.8% 2.2 / (8.5)% through Dec 31, 2021 “New” CNH Industrial starting Jan 1, 2022 11.0 10.9 14.7 8.2% 8.1% 12.3% 2019 2020 2021 Agricult
Slide 4: Positioning for the future
Pre-Demerger An Innovative, Sustainable, and Efficient Company 4 Spin-off M&A Price/Cost Workplace Safety Positioning for the future February 8, 2022 FY & Q4 2021 Results Review
Slide 5: Fourth Quarter & Full Year | Financial Highlights
Pre-Demerger Fourth Quarter & Full Year | Financial Highlights 5 Q4 2021 Net Sales FY 2021 % chg. y-o-y Net sales at $31.6bn, up 30% (28% at constant currency) with increases in all segments due to continued strong industry demand and price realization $8.6bn +6% $31.6 +30% Industrial Activities Gro
Slide 6: Full Year 2021 | Financial Services
Pre-Demerger Full Year 2021 | Financial Services 6 ($mn) Net Income Profitability Ratios 3.7% 3.3% 3.3% 3.0% FY 2021 420 2.1% 1.7% 1.8% 1.1% FY 2020 249 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 Gross Margin / Average Assets on Book ROA (**) Managed Portfolio (*) & Retail O
Slide 7: Full Year 2021 | Net Industrial Cash, Free Cash Flow
Pre-Demerger Full Year 2021| Net Industrial Cash, Free Cash Flow 7 ($mn) FREE CASH FLOW OF INDUSTRIAL ACTIVITIES (*) 1,751 o/w $2.3bn M&A activity 786 2,993 (559) (58) 94 (706) (13) (188) (2,061) 288 CHANGE IN CASH INTEREST CHANGE IN WORKING DIVIDENDS & EQUITY Dec 31, 2020 IA | ADJ EBITDA AND TAXES
Slide 8: CNHI excluding Iveco Group FY & Q4 2021 – Pro Forma
CNHI excluding Iveco Group FY & Q4 2021 – Pro Forma
Slide 9: Financial Summary (Pro Forma)
Excl. Iveco Group Financial Summary (Pro Forma) (1) 9 Q4 2021 FY 2021 FY 2020 FY 2019 Pro Forma Combined Off-Highway Business (under U.S. GAAP) Revenues ($mn) 5,480 19,496 14,779 15,535 Financial Services 478 1,672 1,660 1,789 Net Sales | Industrial Activities ($mn) 4,994 17,802 13,083 13,708 Agricu
Slide 10: 2021 Ind. Activities Adj EBIT walk by driver (Pro Forma)
Excl. Iveco Group 2021 | Ind. Activities Adj EBIT walk by driver (Pro Forma) (1) 10 4.5% 9.9% FY 583 949 1,280 (790) (166) (141) 73 (25) 1,763 Adj. EBIT (2) UNALLOCATED, Adj. EBIT (2) VOL & MIX PRICING NET PROD COST SG&A R&D FX | OTHER FY20 ELIM & OTHER FY21 AG 823 1,005 (696) (143) (131) 71 22.4% +
Slide 11: Full Year 2021 | FCF, Net Industrial (Debt), Debt Maturity Profile
Excl. Iveco Group Full Year 2021 | FCF, Net Industrial (Debt), Debt Maturity Profile (1) 11 ($mn) FREE CASH FLOW OF INDUSTRIAL ACTIVITIES (*) 1,928 o/w $2.3bn M&A activity (893) 2,058 (376) 248 395 (360) (37) (188) (1,973) (1,126) CHANGE IN CASH INTEREST CHANGE IN WORKING DIVIDENDS & EQUITY Dec 31,
Slide 12: CEO Remarks: A Simpler and Stronger Company
Excl. Iveco Group CEO | Remarks 12 Differentiated, Customer Focused Technology Capabilities A Simpler and Stronger Company with a Laser Focus on Execution On-Highway Vehicles & Note: Augmenta, Monarch Tractor and Bennamann Ltd. are not controlled companies. Equipment February 8, 2022 FY & Q4 2021 Re
Slide 13: FY 2021 | Unit Performances vs. FY 2020
Excl. Iveco Group FY 2021 | Unit Performances vs. FY 2020 13 North America Europe South America Rest of World Worldwide 0-140 HP 10% Tractors 16% 22% 15% 14% Industry 140+ HP 23% Combines 25% 17% 19% 19% 19% Light 24% 18% 72% 0% 13% Heavy 17% 21% 96% 10% 16% TRACTORS COMBINES LIGHT HEAVY Company Ord
Slide 14: Full Year 2022E | Industry Unit vs. FY 2021 (Estimates)
Excl. Iveco Group Full Year 2022E | Industry Unit vs. FY 2021 (Estimates) 14 North America Europe South America Rest of World Worldwide 0-140 HP Flat Tractors Flat - 5% Flat - 5% (5%) - Flat Flat 140+ HP ~15% Combines ~10% Flat - 5% Flat - 5% Flat - 5% Flat - 5% Light Flat - 5% Flat - 5% Flat - 5% (
Slide 15: Full Year 2022E | Initial Guidance
Excl. Iveco Group Full Year 2022E | Initial Guidance 15 Guidance Net Sales (*) Up 10 - 14% (including currency translation effects) Industrial Activities SG&A ≤ 7.5% of Net Sales Free Cash Flow Positive in excess of ~$1.0bn R&D At ~ $1.4bn Capex H1 ’22E to remain impacted by supply chain constraints
Slide 16: CNH Capital Markets Day – Save the Date
Excl. Iveco Group CNHI | CMD – SAVE THE DATE 16 CNH Capital Markets Day February 22, 2022 11am – 4pm EST Miami Beach, Florida Presentations by members of the Senior Leadership Team Q&A session Product / Technology exhibits Live webcast will begin at: 12 p.m. EST / 5 p.m. GMT / 6 p.m. CET Join
Slide 17: Appendix
Appendix INDUSTRIAL
Slide 18: Fourth Quarter 2021 | Financials by Segment
Pre-Demerger Fourth Quarter 2021 | Financials by Segment 18 REVENUES GROSS PROFIT Adj. EBIT Adj. EBIT Margin % D&A Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 AG 4,150 3,425 844 718 414 379 10.0% 11.1% 66 61 CE 844 752 104 84 20 10 2.4% 1.3% 11 12 C&SV 3,256 3,290 386 415 55 110 1.7%
Slide 19: Fourth Quarter 2021 | Net Sales and Adj EBIT breakdown
Pre-Demerger Fourth Quarter 2021 | Net Sales and Adj EBIT breakdown 19 Net Sales Split AG CE C&SV PT Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 NA 1,489 1,132 NA 445 361 NA n.m. n.m. NA 52 35 EU 1,269 1,241 EU 127 140 EU 2,611 2,684 EU 636 833 SA 761 511 SA 142 99 SA 323 201 SA 87 62 RoW 631 54
Slide 20: FY 2021 | Financials by Segment
Pre-Demerger FY 2021 | Financials by Segment 20 REVENUES GROSS PROFIT Adj. EBIT Adj. EBIT Margin % D&A FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 AG 14,721 10,923 3,295 2,087 1,810 880 12.3% 8.1% 255 250 CE 3,081 2,170 392 81 90 (184) 2.9% (8.5%) 38 46 C&SV 12,160 9,421 1,418 835 28
Slide 21: FY 2021 | Net Sales and Adj EBIT breakdown
Pre-Demerger FY 2021 | Net Sales and Adj EBIT breakdown 21 Net Sales Split AG CE C&SV PT FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 NA 5,123 3,794 NA 1,439 961 NA n.m. n.m. NA 177 111 EU 4,715 3,854 EU 570 417 EU 9,631 7,628 EU 3,038 2,446 SA 2,350 1,486 SA 501 321 SA 1,095 572 SA 355 178 RoW 2
Slide 22: Capex and R&D
Pre-Demerger Capex and R&D (1) 22 ($mn) FY FY 2021 2020 Investments in property, plant and equipment, and intangible assets (1) 706 481 Breakdown by Category NEW PRODUCT & TECHNOLOGY 39% 47% MAINTENANCE & OTHER 49% 51% INDUSTRIAL CAPACITY EXPANSION & LT INVESTMENTS 12% 2% Breakdown by Segment AGRICU
Slide 23: Debt Maturity Schedule | Breakdown
Pre-Demerger Debt Maturity Schedule | Breakdown 23 ($mn) Outstanding Dec 31, 2021 2022 2023 2024 2025 2026 Beyond 2.8 Bank Debt 1.7 0.4 0.4 0.1 0.1 0.1 9.7 Capital Market 1.3 2.0 1.9 0.9 1.7 1.9 0.2 Other Debt 0.2 0.0 0.0 0.0 0.0 0.0 12.7 Cash Portion of (Debt) Maturities 3.2 2.4 2.3 1.0 1.8 2.0 of
Slide 24: Reconciliations
Reconciliations INDUSTRIAL
Slide 25: Reconciliation of Net Income to Adj. EBIT by Segment (Q4 2021)
Pre-Demerger Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) 25 Q4 2021 Unallocated Industrial ($mn) AG CE CV PT Items, Elim. & Activities Other Consolidated Net income 307 Less: Consolidated Income tax (expense) benefit 82 Consolidated Income before taxes 225 Less: Financial S
Slide 26: Reconciliation of Net Income to Adj. EBIT by Segment (Q4 2020)
Pre-Demerger Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) 26 ($mn) Q4 2020 Unallocated Industrial AG CE CV PT Items, Elim. & Activities Other Consolidated Net income 187 Less: Consolidated Income tax (expense) benefit (28) Consolidated Income before taxes 215 Less: Financial
Slide 27: Reconciliation of Net Income to Adj. EBIT by Segment (FY 2021)
Pre-Demerger Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) 27 FY 2021 Unallocated Industrial ($mn) AG CE CV PT Items, Elim. & Activities Other Consolidated Net income 1,760 Less: Consolidated Income tax (expense) benefit (342) Consolidated Income before taxes 2,102 Less: Fina
Slide 28: Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (FY 2020)
Pre-Demerger Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) 28 ($mn) FY 2020 Unallocated Industrial AG CE CV PT Items, Elim. & Activities Other Consolidated Net income (loss) (438) Less: Consolidated Income tax (expense) benefit 50 Consolidated Income (loss) before taxes (488)
Slide 29: Reconciliation of Total Debt to Net Debt
Pre-Demerger Reconciliation of Total Debt to Net Debt (US GAAP) 29 ($mn) Consolidated Industrial Activities Financial Services December 31, December 31, December 31, December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 Third party debt (23,745) (26,053) (5,365) (7,271) (18,380) (18,7
Slide 30: Reconciliation of Cash to Available Liquidity
Pre-Demerger Fourth Quarter 2021 30 Reconciliation of Cash and cash equivalents to Available liquidity under U.S.-GAAP ($mn) December 31, 2021 December 31, 2020 Cash and cash equivalent 6,006 8,785 Restricted cash 856 844 Undrawn committed facilities 5,224 6,148 Other current financial assets(1) 63
Slide 31: Reconciliation to Free Cash Flow of Industrial Activities
Pre-Demerger Fourth Quarter 2021 31 Reconciliation of Net cash provided by (used in) Operating Activities to Free cash flow of Industrial Activities under U.S. GAAP ($mn) Q4 2021 Q4 2020 FY 2021 FY 2020 Net cash provided by (used in) Operating Activities 2,190 2,766 4,082 5,529 Less: Cash flows from
Slide 32: Reconciliation of Adj. Net Income and Adj. Diluted EPS
Pre-Demerger Fourth Quarter 2021 32 Reconciliation of Adj. net income and Adj. income tax (expense) benefit to Net Income (loss) and Income tax (expense) ($mn) benefit and calculation of Adj. diluted EPS and Adj. ETR under U.S.GAAP FY 2021 FY 2020 Q4 2021 Q4 2020 1,760 (438) Net income (loss) 307 18
Slide 33: Reconciliation of Adj. Net Income: Adjustments Detail
Pre-Demerger Fourth Quarter 2021 33 Reconciliation of Adj. net income and Adj. income tax (expense) benefit to Net Income (loss) and Income tax (expense) ($mn) benefit and calculation of Adj. diluted EPS and Adj. ETR under U.S.GAAP FY 2021 FY 2020 Q4 2021 Q4 2020 (a) Adjustments impacting Income (lo
Slide 34: Basis of the Presentation
Excl. Iveco Group Basis of the Presentation 34 The unaudited pro forma financial information provided in this presentation has been prepared to represent the combined historical results of operations, financial position and cash flows of the Off-Highway Business structure that will be controlled by
Slide 35: Net Income to Adj. EBIT by Segment (Pro Forma FY 2021)
Excl. Iveco Group Net Income (Loss) to Adj. EBIT of Industrial Activities by Segment 35 FY 2021 Unallocated Items, U.S. GAAP ($mn) Unaudited AG CE Total Elim. & Other Pro forma Combined Net income (loss) - - - 1,801 Less: Consolidated Income tax (expense) benefit - - - (229) Pro forma Combined Incom
Slide 36: Net Income to Adj. EBIT by Segment (Pro Forma FY 2020)
Excl. Iveco Group Net Income (Loss) to Adj. EBIT of Industrial Activities by Segment 36 FY 2020 Unallocated Items, U.S. GAAP ($mn) Unaudited AG CE Total Elim. & Other Pro forma Combined Net income (loss) - - - (198) Less: Consolidated Income tax (expense) benefit - - - (85) Pro forma Combined Income
Slide 37: Net Income to Adj. EBIT by Segment (Pro Forma FY 2019)
Excl. Iveco Group Net Income (Loss) to Adj. EBIT of Industrial Activities by Segment 37 FY 2019 Unallocated Items, U.S. GAAP ($mn) Unaudited AG CE Total Elim. & Other Pro forma Combined Net income - - - 797 Less: Consolidated Income tax (expense) benefit - - - (159) Pro forma Combined Income before
Slide 38: Reconciliation of Adj. Net Income and Adj. Diluted EPS (Pro Forma)
Excl. Iveco Group FY 2021 – FY 2020 – FY 2019 38 Reconciliation of Adj. net income and Adj. income tax to Net Income (loss) and Income tax (expense) benefit and calculation of Adj. diluted EPS and Adj. ETR under U.S.GAAP U.S. GAAP ($mn) Unaudited FY 2021 FY 2020 FY 2019 Pro forma Combined Net income
Slide 39: Reconciliation of Adj. Net Income: Adjustments Detail (Pro Forma)
Excl. Iveco Group FY 2021 – FY 2020 – FY 2019 39 Reconciliation of Adj. net income and Adj. income tax to Net Income (loss) and Income tax (expense) benefit and calculation of Adj. diluted EPS and Adj. ETR under U.S.GAAP U.S. GAAP ($mn) Unaudited FY 2021 FY 2020 FY 2019 (a) Adjustments impacting Inc
Slide 40: Reconciliation to Free Cash Flow (Pro Forma)
Excl. Iveco Group FY 2021 – FY 2020 – FY 2019 40 Reconciliation of Net cash provided by (used in) Operating Activities to Free Cash Flow of Industrial Activities under U.S. GAAP U.S. GAAP ($mn) Unaudited FY 2021 FY 2020 FY 2019 Net cash provided by (used in) Operating Activities 3,198 4,189 995 Less
Slide 41: Full Year 2021 | Total (Debt) To Net (Debt)
Excl. Iveco Group Full Year 2021 | Total (Debt) To Net (Debt) 41 U.S. GAAP ($mn) Unaudited Consolidated Industrial Activities Financial Services December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2021 2020 2019 2021 2020 2019 2021 202
Slide 42: Reconciliation of Cash to Available Liquidity (Pro Forma)
Excl. Iveco Group FY 2021 – FY 2020 – FY 2019 42 Reconciliation of Cash and cash equivalents to Available Liquidity under U.S. GAAP U.S. GAAP ($mn) Unaudited December 31, 2021 December 31, 2020 December 31, 2019 Cash and cash equivalents 5,044 8,199 4,455 Restricted cash 801 788 850 Undrawn committe
Slide 43: Geographic Information
Pre-Demerger Geographic Information 43 The composition of our regions part of the geographic information is as follow: North America: United States, Canada and Mexico; Europe: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine, and Balkans; Sou
Slide 44: Non-GAAP Financial Measures
Non-GAAP Financial Measures 44 CNH Industrial monitors its operations through the use of several non-GAAP financial measures. CNH Industrial’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ a
Slide 45: Investor Relations Team
Investor Relations Team Noah Weiss – Global Head of Investor Relations +1 (630) 887 – 3745 e-mail: noah.weiss@cnhind.com website: www.cnhindustrial.com