Cnh Industrial N.v. · NYSE:CNH
Cnh Industrial — Investor Day (February 2022)
22 slides from Cnh Industrial's investor day presentation, Feb 2, 2022
Slide 1: Opening Remarks
Opening Remarks Scott W. Wine CHIEF EXECUTIVE OFFICER
Slide 2: Innovation, Sustainability, Productivity
INNOVATION SUSTAINABILITY PRODUCTIVITY
Slide 3: Today's Presenters
Parag Garg Derek Neilson Stefano Pampalone TODAY’S C H I EF D I G I TA L PR ES I D EN T, PR ES I D EN T, PRESENTERS OF F I C ER A G R I C U L TU R E C ON S TR U C TI O N Precision Technology Agriculture Segment Construction Segment Selin Tur Kelly Manley Oddone Incisa V I C E PR ES I D EN T, C H I E
Slide 4: The New CNH Industrial
THE NEW CNH INDUSTRIAL GREAT IRON GREAT TECHNOLOGY Precision Autonomy Electrification Alternative Agriculture Fuels 1 GREATER CUSTOMER FOCUS A Winning Combination 1. Strategic Partnership 4
Slide 5: Enhancing Our Culture to Drive Results
ENHANCING OUR CULTURE … TO DRIVE RESULTS for customers, employees, shareholders, and all stakeholders OUR BELIEFS Customer first One team Grow together Make it simple Be the best 5
Slide 6: Agriculture and Construction
AGRICULTURE CONSTRUCTION Strong global player in >$100B market Strong brand / network in the Americas Renowned brands supporting growth Healthy outlook for profitable growth Leadership in machine automation Extensive synergies with Agriculture segment Raven accelerates precision / margins Co-investm
Slide 7: A Focused Agriculture and Construction Business
A FOCUSED AGRICULTURE AND CONSTRUCTION BUSINESS Winning through improvements in product, brand and distribution CNH INDUSTRIAL REVENUES, 2021 (PRO FORMA) $19.5B Construction Agriculture 16% 76% Financial Services 8% Consolidated Revenues, CNH Industrial 2021, Pro Forma excluding Iveco Group 7
Slide 8: A Strong Global Presence
A STRONG GLOBAL PRESENCE Significant international balance and reach CNH INDUSTRIAL NET SALES, 2021 (PRO FORMA) $17.8B North EMEA America 37% 37% APAC 10% South America 16% Net Sales of Industrial Activities 8
Slide 9: Competing in a Dynamic World
COMPETING IN A DYNAMIC WORLD COVID-19 Supply chain Geopolitics Cyberthreats Global debt Tech acceleration AI / Machine learning Inflation Electrification / Biofuels Climate change Precision / Autonomy 9
Slide 10: Impact on Our Business
IMPACT ON OUR BUSINESS INDUSTRY DRIVERS Population growth Farm mechanization / digitalization NA infrastructure bill Availability / cost of skilled labor Farm income Residential building Global weather patterns Agriculture cycle Rising interest rates Geopolitical tensions Semiconductor capacity Regu
Slide 11: Strategic Priorities
STRATEGIC PRIORITIES CUSTOMER TECHNOLOGY BRAND OPERATIONAL SUSTAINABILITY INSPIRED LEADERSHIP AND DEALER EXCELLENCE STEWARDSHIP INNOVATION STRENGTH 11
Slide 12: Results Focus: Key Targets by 2024
RESULTS FOCUS Key targets to measure success by 2024 CUSTOMER SUCCESS +15 FREE CASH FLOW >70% NPS points conversion MARKET SHARE GAINS 1 200+ ROIC ~19% basis points industrial MARGIN EXPANSION 24%+ SUSTAINABILITY SBTi gross margin commitment 1. In the major markets and product lines where we compete
Slide 13: Raven Update
SPRAYER AUTOCART RAVEN UPDATE Largest acquisition in CNH Industrial’s history – Accelerating plans for successful integration TEAM / CULTURE Reverse integration progressing well New tech already deployed by joint teams Strong fit with customer-focused culture Plug and play Raven’s innovation process
Slide 14: A Running Start
A RUNNING START CUSTOMER TECHNOLOGY BRAND OPERATIONAL SUSTAINABILITY INSPIRED LEADERSHIP AND DEALER EXCELLENCE STEWARDSHIP INNOVATION STRENGTH Spin / positive transformation Global vision / regional execution Top ESG scores 2x more customer facing roles Agriculture brand synergies / governance Incre
Slide 15: Customer focus drives everything we do
Strategic Priorities CUSTOMER INSPIRED INNOVATION MARGIN EXPANSION Customer focus drives everything we do Solving great challenges CUSTOMER SUCCESS 200+ product launches Superior user experience MARKET Rigorous “in field” R&D at scale SHARE GAINS 100% connected machines SUSTAINABILITY 15
Slide 16: Improve productivity, yield, control and sustainability
Strategic Priorities TECHNOLOGY LEADERSHIP CUSTOMER SUCCESS Improve productivity, yield, control and MARKET SHARE GAINS sustainability Full autonomous farming cycle ROIC Modular and scalable tech stack Accelerating precision offerings MARGIN EXPANSION 10+ products with alternative propulsion CNH Ind
Slide 17: Enhancing brand prominence and dealer engagement
Strategic Priorities BRAND AND DEALER STRENGTH Enhancing brand prominence and dealer engagement CUSTOMER SUCCESS Global brands / preferred local partners Brand-specific product identity MARKET SHARE GAINS 100% of dealers digitalized Optimize brands for profitable growth MARGIN 10M touchpoints from c
Slide 18: Accelerate continuous improvement with CNH Industrial Business System
Strategic Priorities OPERATIONAL EXCELLENCE Accelerate continuous improvement with CNH Industrial Business System CUSTOMER SUCCESS $550M+ operational efficiencies Strategic sourcing = value creation FREE CASH FLOW Customer-focused end-to-end processes 50% injury frequency rate reduction MARGIN World
Slide 19: World-class environmental stewardship built on strong foundations
Strategic Priorities SUSTAINABILITY STEWARDSHIP World-class environmental stewardship built on strong foundations CUSTOMER SUCCESS SBTi commitment 50% CO2 reduction vs. 2018 ROIC Biogas circularity >20% women in leadership roles SUSTAINABILITY New Sustainability Committee 19
Slide 20: Capital Allocation Post-Spin
CAPITAL ALLOCATION POST-SPIN As a stronger company, we will drive shareholder value while maintaining our track record of disciplined capital management THREE YEAR INCREASE IN INVESTMENT Agriculture Construction Technology1 53% 26% 68% Investment to accelerate organic growth Strong balance sheet and
Slide 21: Financial Targets
FINANCIAL TARGETS ~6% CAGR revenue growth and ~300bps EBIT margin improvement for industrial activities 2019A 2021A 2024E Net sales $13.7B $17.8B $20-22B Adj. EBIT margin (ind. activities, %) 12-13% 9.9% 6.4% 2019A 2021A 2024E Agriculture Adj. EBIT margin 8.2% 12.3% 14.5-15.5% Construction Adj. EBIT
Slide 22: What to Expect
WHAT TO EXPECT Enhanced capabilities Bold action Organic strengths Customer focused, and acquired assets playing to win Deep experience Solid foundation One team, pursuing Advancing with common goals purpose and pace 22