Cnh Industrial N.v. · NYSE:CNH

Cnh Industrial — Investor Day (September 2019)

13 slides from Cnh Industrial's investor day presentation, Sep 3, 2019

  1. Slide 1: Construction – Capital Markets Day 2019

    New York City September 3, 2019 Carl Gustaf CONSTRUCTION Göransson President Construction CAPITAL MARKETS DAY 2019

  2. Slide 2: Global Construction Equipment Presence

    GLOBAL CONSTRUCTION EQUIPMENT PRESENCE PRESENT IN ALL MARKETS ANNUAL NET SALES, 2018 INDUSTRY CYCLE EU NA $1.5B $0.5B RoW SA NORTH EUROPE AMERICA OUTLOOK  NA: Current market showing signs of softening  EU: Nearing peak amid slower $0.4B $0.6B economic performance  SA: Slow recovery despite volati

  3. Slide 3: Product Overview: Operating in Three Main Segments

    PRODUCT OVERVIEW OPERATING IN THREE MAIN SEGMENTS COMPACT & GENERAL ROAD BUILDING & SERVICE CONSTRUCTION SITE PREPARATION TIV* 47% 44% 9% Units 73% 19% 8% CNH Industrial Net Sales 51% 39% 10% Market Share Gross Margin * Total Industry Volumes (units); Data as of 2018 3 Legend: Green: Leading; Yellow

  4. Slide 4: Our Mission

    OUR MISSION WINNING CUSTOMER LOYALTY BY PROVIDING RELIABLE, INTUITIVE AND SUSTAINABLE SOLUTIONS 4

  5. Slide 5: Construction Strategy

    CONSTRUCTION Construction STRATEGY Infrastructure Expand into Rental attractive segments Industrial Application Earn the right to grow by excelling at Wheel Loader the fundamentals and Strengthen core Crawler Excavator product offering focusing on attractive Compact Equipment Fundamentals customer s

  6. Slide 6: Construction and Agriculture Synergies

    CONSTRUCTION AND AGRICULTURE SYNERGIES CONSTRUCTION SEGMENT IS A STRONG COMPLEMENT TO AG Low High  Common customer base  Complementary product range  400+ shared dealers Customer & go-to-market  Similar vehicle architecture & electronics  Aligned telematics and fleet mgmt. approach  Common mec

  7. Slide 7: 80/20 Simplification: Product

    80/20 SIMPLIFICATION: PRODUCT FOCUSING ON THE MOST VALUABLE PRODUCTS FOR OUR CUSTOMERS TODAY 2022 TARGET (NORTH AMERICA) Product configurations A B 60%+ +300 40% SKUs Reduction bps on Adj. 7% Dealers in SKUs EBIT margin A 70% Sales Dealers ACTIONS BEING IMPLEMENTED  Discontinue 44 models (out of 17

  8. Slide 8: 80/20 Simplification: Distribution

    80/20 SIMPLIFICATION: DISTRIBUTION DRIVING DEALER CONSOLIDATION AND PROFESSIONALIZATION TODAY 2024 TARGET (GLOBAL) Product configurations - 25% A B dealers in NA and EU 40% SKUs 7% Dealers + 10% dealers in RoW and SA A 70% Sales Dealers ACTIONS BEING IMPLEMENTED  Network consolidation – Providing c

  9. Slide 9: Quality: Pursuing Clear Path to Become Industry Leader

    QUALITY PURSUING CLEAR PATH TO BECOME INDUSTRY LEADER 2024 TARGETS ACTIONS TAKEN -25% Reduction in # claims 11 Initiatives running  World Class Engineering -20% Reduction in Time To Repair  End-to-end customer advocacy  360° Net Promoter Score  End-to-end product management <1.5% Cost of non-qua

  10. Slide 10: Aftermarket & Digital Solutions

    AFTERMARKET & DIGITAL SOLUTIONS USE DIGITAL CHANNELS AND REMOTE SERVICES TO INCREASE CUSTOMER PROXIMITY EXTENDING OFFERING: +10%  New channel: Dealer e-commerce platform AMS AMS* Revenues growth  New product: Reman and Attachments (2019-2024 CAGR)  New Service: Digital and connected TARGETING INC

  11. Slide 11: New Products & Offering

    NEW PRODUCTS & OFFERING LAUNCHING 10+ NEW PRODUCTS TO PENETRATE EXISTING AND NEW SEGMENTS COMPACT WHEEL LOADER CRAWLER EXCAVATOR Segments/Region New /Upgrade Minotaur (2020) G Series 2 (2020) Next Gen E Series (2020) Product B-series CTL/SSL (2020) CNG WL (2023) Localization in India (2020) Next gen

  12. Slide 12: Targets 2024

    TARGETS 2024 EXCELLING AT THE BASICS AND FOCUSING ON ATTRACTIVE CUSTOMERS TO TRIPLE EBIT MARGIN INVESTMENTS NET SALES $1.2B $3.0B $3.8B $4.6B Product Roadmap ADJ. EBIT 9% Mega Trends Maintenance & Other 80/20 simplification Manufacturing efficiency Quality excellence 6% 19% Build on India 3% Supply

  13. Slide 13: Safe Harbor Statement and Disclosure

    SAFE HARBOR STATEMENT AND DISCLOSURE All statements other than statements of historical fact contained in the slides presented today including statements regarding our competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to reven

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