Cnh Industrial N.v. · NYSE:CNH
Cnh Industrial — Q3 2021 Earnings Presentation
45 slides from Cnh Industrial's earnings presentation, Nov 4, 2021
Slide 1: CNHI Q3 2021 Results Review
CNHI | Q3 2021 Results Review November 4th, 2021
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 statements under “2021 Outlook” and statements regarding our future responses to and effects of the COVID-19 pandemic; competitive strengths; business strategy; fu
Slide 3: Third Quarter 2021 Summary
Third Quarter 2021 | Summary 3 Revenue and Profit – net sales improvements across segments vs. Q3 2020, with margin up in AG, CE and C&SV, down in PT, as anticipated Supply Chain – delays continued across regions, worsening in the latter part of the quarter due to severe semiconductor related shorta
Slide 4: Off-Road Third Quarter 2021 Unit Performances vs. Q3 2020
OFF - ROAD Third Quarter 2021 | Unit Performances vs. Q3 2020 4 North America Europe South America Rest of World Worldwide 0-140 HP 3% Industry Tractors 5% 8% (7%) (3%) 140+ HP 29% Combines 29% 55% 16% 28% 29% Light 8% 10% 60% (19%) (2%) Heavy 14% 12% 108% (8%) 2% TRACTORS COMBINES LIGHT HEAVY Compa
Slide 5: Off-Road Full Year 2021E Industry Unit Performances
OFF - ROAD Full Year 2021E | Industry Unit Performances vs. FY 2020 5 North America Europe South America Rest of World Worldwide 0-140 HP ~ 10% Tractors 10-15% 15-20% 10-15% 10-15% 140+ HP 20-25% Combines 20% 10-15% 20% ~ 20% 20% Light ~ 25% 10-15% ~ 60% FLAT-5% 10-15% Heavy 15-20% 15-20% ~ 75% ~ 5%
Slide 6: Off-Road Growth Initiatives
OFF - ROAD Growth Initiatives 6 Robust integration planning in place to maximize value of Raven’s existing technology and accelerate near-term Broad mini and midi excavator portfolio under the product development opportunities while building Eurocomach brand that solidifies CNHI’s presence in integr
Slide 7: Off-Road Q3 2021 New Product Launches
OFF - ROAD Q3 2021 | New Product Launches 7 New Holland Launched Speedrower PLUS New Holland launched new T7 Heavy Duty Case IH launched New Optum AFS Connect Series Self-Propelled Windrowers Tillage Prescription Technology Enhances Productivity and Agronomic Benefits CASE launches the tv620b New CA
Slide 8: Off-Road AG Technology Building Blocks
OFF - ROAD AG | Technology Building Blocks 8 Connected Ecosystem Automation & Autonomy Alternative Energy Note: Augmenta, Monarch Tractor and Bennamann Ltd. are not controlled companies. Raven Industries Inc. will be fully owned upon closing of the announced transaction November 4th, 2021 Q3 2021 Re
Slide 9: On-Road Third Quarter 2021 Unit Performances vs. Q3 2020
ON - ROAD Third Quarter 2021 | Unit Performances vs. Q3 2020 9 Europe South America Rest of World Worldwide Industry LCV (11%) 9% (5%) (8%) M&H 6% 42% 15% 17% Buses 3% (10%) 11% 1% LIGHT DUTY TRUCKS MEDIUM & HEAVY Company Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q120 Q220 Q320 Q420 Q121 Q221 Q321 COMPANY
Slide 10: On-Road Full Year 2021E Industry Unit Performances
ON - ROAD Full Year 2021E | Industry Unit Performances vs. FY 2020 10 Europe South America Rest of World Worldwide LCV ~ 10% 25% ~ 10% 10 - 15% M&H ~ 25% 40 - 45% ~ 25% 25 - 30% Buses ~ FLAT 5 - 10% ~ 5% FLAT - 5% NOTE: Total Industry Volume % change FY 2021 vs. FY 2020 reflecting aggregate for key
Slide 11: On-Road IVECO and Nikola: Another Milestone Delivered
ON - ROAD IVECO and Nikola | Another Milestone Delivered 11 645 HP 560 KM continuous range 120 MIN 753 KWH avg. charge battery pack On September 15th in Ulm, Germany the manufacturing facility dedicated to the Nikola Tre electric heavy-duty trucks unveiled, ready to start production by year end. A m
Slide 12: On-Road Unveiled Corporate Name and Logo
ON - ROAD Unveiled Corporate Name and Logo 12 November 18th Iveco Group Investor Day A live streaming will begin at 2:30 p.m. CET / 1:30 p.m. GMT / 8:30 a.m. EST The event will be followed by a non-deal road show starting November 19th A new On-Highway reality takes shape November 4th, 2021 Q3 2021
Slide 13: Third Quarter Financial Highlights
Third Quarter | Financial Highlights 13 Net Sales % chg. y-o-y Net Sales at $7.5bn up 23% at constant currency, with year over year improvements across all segments on higher volumes and ~7% price realization $7.5bn +23% Industrial Activities Gross Margin bps chg. y-o-y Gross profit up $374mn vs. sa
Slide 14: Industrial Activities Adj EBIT Walk
Third Quarter 2021 | Ind. Activities Adj EBIT Walk (Driver & Segment) 14 6.2% 3.9% 238 275 445 (359) (78) (62) 7 3 469 Adj. EBIT (1) UNALLOCATED, Adj. EBIT (1) VOL & MIX PRICING NET PROD COST SG&A R&D FX | OTHER Q320 ELIM & OTHER Q321 Gross Adj EBIT Margin Margin Walk by Segment AG 144 305 (226) (49
Slide 15: Third Quarter 2021 Financial Services
Third Quarter 2021 | Financial Services 15 ($mn) Net Income Profitability Ratios 3.0% 3.7% 3.0% 3.2% Q3 2021 118 1.8% 1.3% 2.4% 1.9% Q3 2020 56 Q1 Q3 Q3 Q4 Q1 Q3 Q3 Q4 Q1 Q3 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2021 Gross Margin / Average Assets on Book ROA (**) Managed Portfolio (*) & Retail Originations
Slide 16: Free Cash Flow and Debt Maturity Profile
Third Quarter 2021| Free Cash Flow and Debt Maturity Profile 16 ($mn) Industrial Activities | Free Cash Flow (*) 682 (175) (1,114) 41 (159) (3) (728) CASH INTEREST CHG IN CHG IN PROVISIONS. & IA | ADJ EBITDA PP&E CAPEX (2) OTHER CHANGES IA FREE CASH FLOW AND TAXES WORKING CAPITAL OTHERS (1) Δ vs. 22
Slide 17: FY 2021E Guidance
FY 2021E Guidance 17 Previous Guidance Updated Guidance (As of July 30th, 2021) Net Sales (*) Up between Lower end of previous (including currency translation effects) 24% and 28% guidance Industrial Activities SG&A ≤ 7.5% of Net Sales Confirmed Positive in Free Cash Flow (1) Positive at ~$1.0bn exc
Slide 18: Q3 2021 Final Remarks
Q3 2021 Final Remarks Corporate Presentation 2017
Slide 19: Spin-Off – Twice as Strong
Spin-Off – Twice as Strong 19 EXTRAORDINARY GENERAL MEETING INVESTOR DAY (February 22nd) INVESTOR DAY Non-deal Road Show (Nov 18th – Nov 24th) October 2021 November 2021 December 2021 Q1 2022 PROSPECTUS APPROVAL AFM FINAL REGULATORY APPROVALS (Autoriteit Financiële Markten) First Day of Trading Spin
Slide 20: CEO Takeaway Messages
CEO Takeaway Messages 20 Solid industry trend expected to continue across regions, semiconductors shortage will negatively affect shipments to dealers Company moving aggressively and innovatively to manage through supply chain issues in order to meet continued strong demand and best serve its dealer
Slide 21: Appendix
Appendix INDUSTRIAL
Slide 22: Third Quarter 2021 Financial Summary
Third Quarter 2021 | Financial Summary 22 Q3 2021 Q3 2020 Δ U.S. GAAP Revenues ($mn) 7,972 6,492 23% Net Sales | Industrial Activities ($mn) 7,537 6,107 23% Net Income ($mn) 329 (932) 1,261 Diluted EPS ($) 0.24 (0.70) 0.94 Non – GAAP (1) Net Sales | Industrial Activities @CC ($mn) 7,491 6,107 23% Ad
Slide 23: Industrial Activities Net Sales vs. Q3 2020
Third Quarter 2021 | Industrial Activities Net Sales vs. Q3 2020 23 AG CE C&SV PT Industrial Activities (1) $3,563mn $773mn $2,879mn $953mn $7,537mn +31% +30% @CC +34% +33% @CC +21% +21% @CC +5% +5% @CC +23% +23% @CC By Region As reported By Region As reported NA EU SA RoW NA EU SA RoW NA EU SA RoW
Slide 24: Third Quarter 2021 Financials by Segment
Third Quarter 2021 | Financials by Segment 24 REVENUES GROSS PROFIT Adj. EBIT Adj. EBIT Margin % D&A Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 AG 3,563 2,713 787 552 415 274 11.6% 10.1% 62 63 CE 773 576 94 40 21 (24) 2.7% (4.2%) 9 9 C&SV 2,879 2,371 303 210 51 (7) 1.8% (0.3%) 115 1
Slide 25: Third Quarter 2021 Net Sales and Adj EBIT breakdown
Third Quarter 2021 | Net Sales and Adj EBIT breakdown 25 Net Sales Split AG CE C&SV PT Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 NA 1,290 937 NA 342 269 NA n.m. n.m. NA 42 27 EU 1,021 893 EU 143 97 EU 2,228 1,922 EU 634 603 SA 625 373 SA 153 85 SA 285 140 SA 96 44 RoW 627 510 RoW 135 125 RoW 3
Slide 26: Sep YTD 2021 Financial Summary
First Half 2021 | Financial Summary 26 Sep YTD 2021 Sep YTD 2020 Δ U.S. GAAP Revenues ($mn) 24,356 17,531 39% Net Sales | Industrial Activities ($mn) 23,070 16,250 42% Net Income ($mn) 1,453 (625) 2,078 Diluted EPS ($) 1.04 (0.49) 1.53 Non – GAAP (1) Net Sales | Industrial Activities @CC ($mn) 22,29
Slide 27: Sep YTD 2021 Financials by Segment
Sep YTD 2021 | Financials by Segment 27 REVENUES GROSS PROFIT Adj. EBIT Adj. EBIT Margin % D&A Sep YTD 21 Sep YTD 20 Sep YTD 21 Sep YTD 20 Sep YTD 21 Sep YTD 20 Sep YTD 21 Sep YTD 20 Sep YTD 21 Sep YTD 20 AG 10,571 7,498 2,451 1,369 1,396 501 13.2% 6.7% 189 189 CE 2,237 1,418 288 (3) 70 (194) 3.1% (
Slide 28: Sep YTD 2021 Net Sales and Adj EBIT breakdown
Sep YTD 2021 | Net Sales and Adj EBIT breakdown 28 Net Sales Split AG CE C&SV PT Sep YTD Sep YTD Sep YTD Sep YTD Sep YTD Sep YTD Sep YTD Sep YTD 21 20 21 20 21 20 21 20 NA 3,634 2,662 NA 994 600 NA n.m. n.m. NA 125 76 EU 3,446 2,613 EU 443 277 EU 7,020 4,944 EU 2,402 1,613 SA 1,589 975 SA 359 222 SA
Slide 29: Capex and R&D
Capex and R&D (1) 29 ($mn) Q3 Q3 Sep YTD Sep YTD 2021 2020 2021 2020 Investments in property, plant and equipment, and intangible assets (1) 159 96 361 228 Breakdown by Category NEW PRODUCT & TECHNOLOGY 38% 47% 44% 51% MAINTENANCE & OTHER 50% 51% 48% 47% INDUSTRIAL CAPACITY EXPANSION & LT INVESTMENT
Slide 30: Debt Maturity Schedule Breakdown
Debt Maturity Schedule | Breakdown 30 ($mn) Outstanding Sep 30, 2021 3M 2021 2022 2023 2024 2025 Beyond 2.6 Bank Debt 0.3 1.4 0.4 0.2 0.1 0.2 10.1 Capital Market 0.7 0.9 2.0 1.9 0.9 3.6 0.3 Other Debt 0.1 0.2 0.0 0.0 0.0 0.0 13.0 Cash Portion of (Debt) Maturities 1.1 2.5 2.4 2.2 1.0 3.8 of which Ind
Slide 31: Europe Trucks Company Performance Q3
Europe Trucks | Company performance 31 Q3 2018 2019 2020 2021 MKT SHARE(1) Light (3.5-7.49t) 14.1% 13.3% 10.8% 13.5% M&H (≥7.5t) 7.1% 6.8% 9.4% 9.5% Europe (*) 11.4% 11.3% 10.4% 12.3% B-TO-B Light (3.5-7.49t) 0.95 0.89 1.42 1.89 M&H (≥7.5t) 0.89 0.97 1.25 1.83 Europe (*) 0.94 0.91 1.37 1.87 Δ 18/19
Slide 32: Europe Trucks Company Performance Sep YTD
Europe Trucks | Company performance 32 Sep YTD 2018 2019 2020 2021 MKT SHARE(1) Light (3.5-7.49t) 14.0% 12.9% 10.9% 12.9% M&H (≥7.5t) 8.0% 6.3% 8.7% 9.0% Europe (*) 11.7% 10.6% 10.2% 11.7% B-TO-B Light (3.5-7.49t) 1.02 1.00 1.36 1.58 M&H (≥7.5t) 0.91 1.02 1.23 1.75 Europe (*) 0.99 1.00 1.33 1.63 Δ 1
Slide 33: Reconciliations
Reconciliations INDUSTRIAL
Slide 34: Reconciliation of Net Income to Adj. EBIT by Segment Q3 2021
Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) 34 Q3 2021 Unallocated Industrial ($mn) AG CE CV PT Items, Elim. & Activities Other Consolidated Net income 329 Less: Consolidated Income tax (expense) benefit (79) Consolidated Income before taxes 408 Less: Financial Services Fin
Slide 35: Reconciliation of Net Income to Adj. EBIT by Segment Q3 2020
Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) 35 ($mn) Q3 2020 Unallocated Industrial AG CE CV PT Items, Elim. & Activities Other Consolidated Net income (loss) (932) Less: Consolidated Income tax (expense) benefit 15 Consolidated Income (loss) before taxes (947) Less: Financ
Slide 36: Reconciliation of Net Income to Adj. EBIT Sep YTD 2021
Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) 36 Sep YTD 2021 Unallocated Industrial ($mn) AG CE CV PT Items, Elim. & Activities Other Consolidated Net income 1,453 Less: Consolidated Income tax (expense) benefit (424) Consolidated Income before taxes 1,877 Less: Financial Se
Slide 37: Reconciliation of Net Income to Adj. EBIT Sep YTD 2020
Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) 37 ($mn) Sep YTD 2020 Unallocated Industrial AG CE CV PT Items, Elim. & Activities Other Consolidated Net income (loss) (625) Less: Consolidated Income tax (expense) benefit 78 Consolidated Income (loss) before taxes (703) Less: F
Slide 38: Reconciliation of Adj. Net Income and Adj. Diluted EPS
Third Quarter 2021 38 Reconciliation of Adj. net income and Adj. income tax (expense) benefit to Net Income (loss) and Income tax (expense) ($mn) benefit and calculation of Adj. diluted EPS and Adj. ETR under U.S.GAAP Sep YTD Sep YTD Q3 2021 Q3 2020 2021 2020 1,453 (625) Net income (loss) 329 (932)
Slide 39: Adjustments to Income Before Tax
Third Quarter 2021 39 Reconciliation of Adj. net income and Adj. income tax (expense) benefit to Net Income (loss) and Income tax (expense) ($mn) benefit and calculation of Adj. diluted EPS and Adj. ETR under U.S.GAAP Sep YTD Sep YTD Q3 2021 Q3 2020 2021 2020 (a) Adjustments impacting Income (loss)
Slide 40: Reconciliation of Total Debt to Net Debt
Reconciliation of Total Debt to Net Debt (US GAAP) 40 ($mn) Consolidated Industrial Activities Financial Services September 30, December 31, September 30, December 31, September 30, December 31, 2021 2020 2021 2020 2021 2020 Third party debt (23,749) (26,053) (5,637) (7,271) (18,112) (18,782) Inters
Slide 41: Reconciliation to Free Cash Flow of Industrial Activities
Third Quarter 2021 41 Reconciliation of Net cash provided by (used in) Operating Activities to Free cash flow of Industrial Activities under U.S. GAAP ($mn) Q3 2021 Q3 2020 Sep YTD 2021 Sep YTD 2020 Net cash provided by (used in) Operating Activities 521 2,228 1,892 2,763 Less: Cash flows from Opera
Slide 42: Reconciliation of Cash to Available Liquidity
Third Quarter 2021 42 Reconciliation of Cash and cash equivalents to Available liquidity under U.S.-GAAP ($mn) September 30, 2021 December 31, 2020 Cash and cash equivalent 7,149 8,785 Restricted cash 765 844 Undrawn committed facilities 5,338 6,148 Other current financial assets(1) 224 94 Available
Slide 43: Geographic Information
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; ▪ South America: C
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 ▪ Federico Donati – Head of Global Investor Relations +44 (207) 76 - 60386 +39 (011) 00 - 71929 ▪ Noah Weiss – Investor Relations North America +1 (630) 887 - 3745 ▪ Giovanni Somajni – Investor Relations Europe +44 (207) 76 - 60369 e-mail: investor.relations@cnhind.co