Cnh Industrial N.v. · NYSE:CNH
Cnh Industrial — IPO Roadshow (March 2015)
42 slides from Cnh Industrial's IPO roadshow presentation, Mar 10, 2015
Slide 1: CNH Industrial N.V.
Exhibit 99.1 CNH Industrial N.V. March 10-11th, 2015
Slide 2: Agenda
Agenda CNH Industrial Overview FY 2014 Results Summary FY 2015E US GAAP Guidance
Slide 3: CNH Industrial
CNH Industrial Our Products are tied together by Common Purpose Professional industrial equipment and commercial vehicle customers Full line distribution model with wide geographic coverage Best in class powertrain technologies Full lifecycle product services Note: All figures are provided herein on
Slide 4: FY 2014 Industrial Activities Overview
CNH Industrial FY 2014 Industrial - Activities Overview Net sales at $31.2bn Operating profit at $2.0bn Operating Margin at 6.4% 2014 Net Sales by Segment 2014 Operating Profit by Segment 2014 Net Sales by Region Powertrain Powertrain APAC, Commercial 11% 11% 13% Agricultural Vehicles NAFTA, Equipme
Slide 5: Global Industrial Footprint
CNH Industrial Global Industrial Footprint (excl. JVs) EMPLOYEES (Total: 69k) NAFTA 17% EMEA 60% APAC 8% LATAM 15% MANUFACTURING FACILITIES R&D CENTERS (Total: 64) (Total: 49) EMEA 34 EMEA 26 NAFTA 12 NAFTA 13 APAC 8 4 APAC LATAM 6 LATAM 10 (December 2014) March 10-11th , 2015 Roadshow – New York &
Slide 6: Well-Known Brands and Deep Product Portfolio
CNH Industrial Well-Known Brands and Deep Product Portfolio Agricultural Equipment Commercial Vehicles Construction Equipment Powertrain Brands Case IH: The premium Iveco (Trucks & CV): Full line Case Construction: Full line FPT Industrial: agriculture equipment partner of commercial vehicles. Offer
Slide 7: Technological Leadership, Best-In-Class Powertrain Capabilities
CNH Industrial Technological Leadership, Best-In-Class Powertrain Capabilities MAINTAININGTECHNOLOGICAL LEADERSHIP ENGINE AFTER TREATMENT ENERGYRECOVERY COMBUSTION AIR HANDLING HI-eSCR ENERGY RECOVERY New high efficiency Advanced turbocharger fast combustionand Wasteheat recoveryon conceptswith ball
Slide 8: Wide Distribution Network with Long-Standing Dealer Relationships
CNH Industrial Wide Distribution Network with Long-Standing Dealer Relationships GLOBAL DEALERS • Global dealer network provides worldwide distribution channel • Over 5,200 dealers worldwide¹ NAFTA EMEA Ag 976 Ag 928 ~60 depots distribute aftermarket parts within Trucks / CVs N/A Trucks / CVs 501 th
Slide 9: Growing Responsibly and Sustainably
CNH Industrial Growing Responsibly and Sustainably CNH Industrial Industry Leader for th4consecutive year 87 87 DJSI World – Machinery and Electrical Equipment 50 Eligible companies: 98 Admitted companies: 11 CNH Industrial Highest score DJSI world industry average score CNH Industrial among the Sus
Slide 10: Agenda
Agenda CNH Industrial Overview FY 2014 Results Summary 2015E US GAAP Guidance
Slide 11: FY 2014 Highlights
FY 2014 Highlights Consolidated Revenues at $32.6bn down 3.8% (down 2.1% on a constant currency basis) vs. last year Net incomeat $708mndown 14.5%vs.last year Net incomebeforerestructuring andother exceptionalitemsat $940mnflat vs.last year EPS at $0.52 flat vs. last year; EPS before restructuring a
Slide 12: From operating profit to net income (US GAAP)
FY 2014 From operating profit to net income (US GAAP) ($mn) FY 2014 FY 2013 Industrial Activities Operating profit 1,988 2,095 (107) Financial Services Operating profit 554 514 40 Elimination & Other (343) (332) (11) Operating Profit 2,199 2,277 (78) Restructuring expenses (184) (71) (113) Interest
Slide 13: Cash Flow – Change in Net Industrial Debt
FY 2014 Cash Flow – Change in Net Industrial Debt ($mn) NET INDUSTRIAL CASH FLOW (676) 725 708 (87) (2,214) (2,691) (1,025) 563 8 $(2.2) / (2.4)bn (1,005) (364) DEC 31, NET D&A CHANGE IN CHANGE TANGIBLE & CHANGE IN CAPITAL FX DEC 31, FY 2015E 2013 INCOME FUNDS & IN WC INTANGIBLE INVESTMENT, INCREASE
Slide 14: Industrial Activities - Capex breakdown
FY 2014 Industrial Activities - Capex breakdown BY CATEGORY FY 2013 FY 2014 TOTAL C APEX ($MN ) 16% 28% 33% FY 1,220 41% -18% 1,005 43% Q4 576 39% 417 Industrial Capacity Expansion & New Product & Technology Maintenance & Other LT Investments Q3 244 246 BY SEGMENT Q2 216 200 FY 2013 FY 2014 Q1 184 1
Slide 15: Liquidity & Debt Maturity
FY 2014 Liquidity & Debt Maturity (December 31st, 2014) COMPANY AVAILABLE LIQUIDITY Available liquidity at December 31, 2014 was $8.9bn, compared to Available 1 Liquidity ($bn) Debt Maturity Schedule($bn) $8.7bn at December 31, 2013 Cash generation from operating Capital expenditures $8.9 activities
Slide 16: Industrial Activities
Industrial Activities Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain th March 10-11 , 2015 Roadshow – New York & Boston
Slide 17: Net Sales Performance by Industrial Activities
FY 2014 Net Sales Performance by Industrial Activities NETSALES ($MN) FY 2013 FY 2014 FY 2015E Target 32,661 31,198 ~28bn 16,763 15,204 -4.5% 11,278 10,888 -9.3% 4,412 4,464 3,258 3,346 -3.5% +2.7% +1.2% (3,050) (2,704) Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Eli
Slide 18: US GAAP Industrial Activities Net Sales - Growth Composition
FY 2014 US GAAP Industrial Activities Net Sales - Growth Composition Q4 2014 (US GAAP, $/mn) FY 2014 32,661 31,198 8,996 31,748 8,468 8,018 4,412 4,474 4,464 1,331 1,077 (913) (550) (528) 988 11,278 (450) 11,094 10,888 3,551 3,582 3,354 -5.9% -5.0% 3,258 -2.8% 3,425 -1.7% 3,346 832 828 800 16,763 15
Slide 19: Operating Profit Performance by Industrial Activities
FY 2014 Operating Profit Performance by Industrial Activities OPERATING PROFIT ($MN) FY 2013 FY 2014 FY 2015E Target 2,095 2,008 1,988 1,770 -11.9% -5.1% 223 79 74 29 187 19.3% n.m. -60.8% (97) (77) (113) Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Eliminations & Oth
Slide 20: Efficiency Program
Efficiency Program FY 2014 ($MN) Main efficiency actions and restructuring charges in the year: AG:primarily due to the closureof a JVin Chinaand cost reduction activities as a result of negative demand conditions Total charges 184 CE:mainly due to the realignmentof the dealer networksin EMEA asa re
Slide 21: Agricultural Equipment
Agricultural Equipment th March 10-11 , 2015 Roadshow – New York & Boston
Slide 22: Agricultural Equipment FY 2014 Financial Results
Agricultural Equipment FY 2014 Financial Results FY 2014 NET SALES BY REGION & PRODUCT ($) FY 2014 OPERATING PROFIT WALK ($) 11% 2,008 41 24% 57% 356 66 1,770 13% NAFTA EMEA Tractors (34) (54) 45% Combines LATAM (613) 11.6% Other 12.0% APAC 31% 19% FY 13 Volume / Pricing, net Prod. Cost SG&A R&D FX
Slide 23: Agricultural Equipment Inventory Management
Agricultural Equipment Inventorymanagement(unitsof equipment)–Industryunits Industry Units AGRICULTURAL EQUIPMENT FY 2014 FY 2015E (MAJOR EQUIPMENT) 0-40 HP +8% Flat 40-140 HP +9% Flat to (5%) 140+ HP (25%) (15%) to (20%) NAFTA +3% Flat to (5%) EMEA (8%) Flat to (5%) LATAM (15%) (15%) to (20%) APAC
Slide 24: Agricultural Equipment Industry Drivers & Looking Ahead
Agricultural Equipment Main industry drivers & Looking ahead MONTHLYCOMMODITYPRICE(US$PERMETRICTON)* US NET FARM INCOME ** Billion dollars While net farm income is projected to fall from record high in 2013, it remains above (22%) the average of the 2001-10 decade (8%) (10%) LOOKING AHEAD Structural
Slide 25: Construction Equipment
Construction Equipment th March 10-11 , 2015 Roadshow – New York & Boston
Slide 26: Construction Equipment FY 2014 Financial Results
Construction Equipment FY 2014 Financial Results FY 2014 NET SALES BY REGION & PRODUCT ($) FY 2014 OPERATING PROFIT WALK ($) 9% 2% 25 79 48% 67 27% 44% NAFTA (16) Light 21 2.4% EMEA Heavy 50 LATAM Other 29 APAC (3.0)% 20% 50% (97) FY 13 Volume / Pricing, net Prod. Cost SG&A R&D FX / Other FY 14 Mix
Slide 27: Construction Equipment Inventory Management
Construction Equipment Inventorymanagement(unitsof equipment)–Industryunits Industry Units CONSTRUCTION EQUIPMENT FY 2014 FY 2015E Light (LIGHT & HEAVY) NAFTA +12% Flat to 5% EMEA +12% Flat to 5% LATAM (24%) (5%) to (10%) APAC (1%) Flat to 5% Worldwide +5% Flat to 5% FY 2014 FY 2015E Heavy NAFTA +12
Slide 28: Construction Equipment Industry Drivers & Looking Ahead
Construction Equipment Main industry drivers & Looking ahead GROSS DOMESTIC PRODUCT GROWTH (YOY % CHANGE) ** 2014 F 2015 F Y-o-Y (14/15) 2016 F World 2.7% 3.0% 3.4% North America 2.3% 2.7% 2.6% Europe 1.4% 1.8% 2.1% Commonwealth 0.4% -0.3% 1.5% Asia (less Japan) 5.8% 5.6% 5.9% Latin America 0.6% 1.1
Slide 29: Commercial Vehicles
Commercial Vehicles th March 10-11 , 2015 Roadshow – New York & Boston
Slide 30: Commercial Vehicles FY 2014 Financial Results
Commercial Vehicles FY 2014 Financial Results FY 2014 NET SALES BY REGION & PRODUCT ($) FY 2014 OPERATING PROFIT WALK ($) 10% 74 13% 42 0 29 EMEA 0.7% 16% LATAM 15% Trucks 67 0.3% Buses APAC 21 Specialty Vehicles 74% 72% (138) (37) FY 13 Volume / Pricing, net Prod. Cost SG&A R&D FX / Other FY 14 Mix
Slide 31: Commercial Vehicles Inventory Management
Commercial Vehicles Inventory management (units of equipment) – Industry units Industry Units COMMERCIAL VEHICLES (ALL EQUIPMENT) Light Medium Heavy FY 2014 FY 2015E EMEA* +1% Flat to 5% LATAM* (16%) (5%) to (10%) APAC* (3%) (5%) to (10%) Fourth quarter underproduction vs. retail at 18% (LATAM under
Slide 32: Commercial Vehicles Industry Drivers & Looking Ahead
Commercial Vehicles Main industry drivers & Looking ahead EUROPEAN HISTORICAL TRUCKS MARKET MCV(>6T – ONLY) & HCV LOOKING AHEAD Only 7%of fleet (>6t) are EUROVI,while agedtrucks running on a higheroperational TCO EU freight indicators for 2015 are a positive support for a restart of demand recovery
Slide 33: Powertrain
Powertrain th March 10-11 , 2015 Roadshow – New York & Boston
Slide 34: Powertrain FY 2014 Financial Results
Powertrain FY 2014 Financial Results FY 2014 NET SALES BY REGION& PRODUCT ($) 11% 4% 8% NAFTA EMEA FY 2014 KEY HIGHLIGHTS LATAM APAC Net sales were $4.5bn in 2014, up 1.2% compared to 76% 2013 (up 1.4% on a constant currency basis), primarily attributable to higher volumes 9% Operating profit of $22
Slide 35: Powertrain Units Sold
Powertrain Units Sold (% change y-o-y) Units Sold FY ‘14 vs. FY ‘13 FY 2014 KEY HIGHLIGHTS Units sold by business line ENGINES +7% • Engines up 7% to 584k units (CV 24%, AG 24%, CE 5% and GEARBOXES +3% 47% to external customers); third party sales at 274k units up25%vs. last year AXLES Flat • Gearbo
Slide 36: Financial Services performance
FY 2014 Financial Services performance KEY HIGHLIGHTS NET INCOME Net incomeof FinancialServiceswas $364mnin FY2014, comparedto ($MN) +6% 364 FY 342 $342mn last year, as a result of a higher average portfolio value, offset by 98 higher provisions for credit losses and higher income taxes Q4 122 75 Q3
Slide 37: Financial Services performance
FY 2014 Financial Services performance Retailloanoriginationsin the year were $10.8bn,a decreaseof 7.6 14.4 0.9 $0.6bn compared to 2013 NAFTA 53% 28% EMEA 3% Managedportfolio* at $27.3bn(of which retail 65%and wholesale 3.2 APAC 1.2 35%)was up $0.4bncomparedto December 31, 2013. Excluding LATAM 12%
Slide 38: Agenda
Agenda CNH Industrial Overview FY 2014 Results Summary FY 2015E US GAAP Guidance
Slide 39: FY 2015E US GAAP Guidance
FY 2015E US GAAP Guidance * Net Sales of Industrial Activities at ~$28bn Operating Margin of Industrial Activities between 6.1%-6.4% NetIndustrialDebtbetween$2.2bn- $2.4bn WE EXPECT THESE ACTIONS ARE FORESEEN TO MITIGATE, BUT NOT FULLY OFFSET + Improved profitability in Commercial Vehicles and Const
Slide 40: Q1 2015E Preliminary view
Q1 2015E Preliminary view -30% AG Unit Production by Quarter WHAT IS EXPECTED FOR Q1 2015 -14% Agricultural Equipment • Significantly lower profitability in Q1 2015 as we maintain Q1E 15 Q2 14 Q3 14 Q4 14 low production levels throughout H1 2015 in order to reduce inventory (decremental margin of lo
Slide 41: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in this presentation that are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. They may also include financial measures that are not in conformance with ac
Slide 42: Investor Relations Team
Contacts Investor Relations Team Federico DonatiHead – of Investor Relations +39 (011) 00 62756 - Noah Weiss Investor – Relations North America +1 (630) 887 3745 - e-mail: investor.relations@cnhind.com website: www.cnhindustrial.com th March 10-11 , 2015 Roadshow – New York & Boston 42