Cnh Industrial N.v. · NYSE:CNH
Cnh Industrial — Investor Presentation (May 2025)
39 slides from Cnh Industrial's investor presentation, May 8, 2025
Slide 1: 2025 Investor Presentation
2025 INVESTOR PRESENTATION
Slide 2: Contents
CONTENTS Chapters Page # 1. CNH overview 3 2. Agriculture segment overview 10 3. Agriculture financial targets 20 4. Construction segment overview & financial targets 28 5. Appendix 35 2
Slide 3: CNH Overview
CNH OVERVIEW 3
Slide 4: Overview
OVERVIEW W O R L D - C L A S S PA RT N E R O F C H O I C E F O R FA R M E R S A N D B U I L D E R S A R O U N D T H E W O R L D #2 180+ Global agriculture original Years as U.S. construction equipment manufacturer machinery provider $15-25B ~36,000 Revenues Full-time employees (through cycle1) 4 1.
Slide 5: Our History
OUR HISTORY A H E R I TA G E O F S U C C E S S S PA N N I N G M O R E T H A N 1 8 0 Y E A R S 1842 1985 1996 CASE CASE acquires Acquisition founded International Harvester of STEYR by Jerome Case 1902 International Harvester founded 1918 1991 1999 2013 2021 2022 2024 Fiat starts mass FiatGeotech Cas
Slide 6: CNH Segments
CNH SEGMENTS Agriculture Construction Financial Services World’s second largest Top 5 player in the Americas Global financier supporting manufacturer of agricultural with broad portfolio and brands, customers, and dealers machinery global distribution ▪ Full-line of equipment delivered ▪ Operating a
Slide 7: Agriculture Equipment Cycle
AGRICULTURE EQUIPMENT CYCLE C Y C L I C A L I N D U S T R Y H I G H LY C O R R E L A T E D T O C O M M O D I T Y P R I C E S Agriculture Equipment Total Industry Volumes S&P GSCI Grains Select Composite Index 2012-2013: Commodity boom 80 due to droughts Key industry cycle drivers include: 75 2020-20
Slide 8: CNH: Path to 2030
CNH: PATH TO 2030 Breaking new ground on Iron + Tech Expanding mid-cycle Adj. EBIT margin Expanding Advancing Driving Operational Quality as a product Iron + Tech commercial efficiencies mindset leadership integration excellence #1 or #2 16%-17% Ag player in all major markets Agriculture Adj. EBIT m
Slide 9: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES 1 Organic growth and margin expansion 2 Balance sheet strength and strong credit rating Support organic growth through investment in commercial actions, operational Preserve investment grade credit rating as efficiencies, and quality improvements foundational commitment
Slide 10: Agriculture Segment Overview
AGRICULTURE SEGMENT OVERVIEW 10
Slide 11: Balanced Sales Portfolio Across Regions
BALANCED SALES PORTFOLIO ACROSS REGIONS U S I N G A R E G I O N A L LY-TA I LO R E D N E T W O R K S T R AT E G Y Agriculture Net Sales by Brand1, % Farm size: Large Mid-large Mid-small Small #1 customer reach with ~6,000 points of sale & service globally EMEA North America ~30% APAC ~40% ~10% ~2,00
Slide 12: Strong CNH Brand Identity
STRONG CNH BRAND IDENTITY T W O D I S T I N C T B R A N D S W I T H S T R O N G I D E N T I T Y, C L E A R P O S I T I O N I N G , A N D I N D U S T R Y - L E A D I N G C U S TO M E R R E A C H $5-10B $6-8B Historical peak-to-trough Historical peak-to-trough sales1 sales1 ~2,200 points of sale globa
Slide 13: Customer-Driven Product Design
CUSTOMER-DRIVEN PRODUCT DESIGN D E V E L O P I N G P R O D U C T S T H AT I M P R O V E FA R M E R P R O D U C T I V I T Y A N D P R O F I TA B I L I T Y CR11 Steiger 785 Quadtrac onnected Digita +30% C Ecosystem l +10% greater harvest capacity with new HP increase over Steiger 715 flagship combines
Slide 14: Equipment Portfolio Launches
EQUIPMENT PORTFOLIO LAUNCHES REFRESHING OUR EQUIPMENT LINEUP Avg. % of total Ag Net Sales 2019-2024 New product launches/refreshes 2024-2030 ~55% New generation combine harvesters offer 15% Total Cost of Ownership (TCO) improvement New 4WD tractors purpose-built for pulling the highest productivity
Slide 15: Precision Tech Portfolio
PRECISION TECH PORTFOLIO D R I V I N G VA L U E F O R FA R M E R S A C R O SS T H E C R O P C Y C L E Combine Automation Tillage Automation (2018 launch) onnected Digita (2019 launch) C l Ecosystem Baler Automation Crop Cycle Autonomous Tillage (2022 launch) (Coming soon) Fi el st d ve Pr 25% Har ep
Slide 16: Precision Tech Growth
PRECISION TECH GROWTH I N N O VAT I N G T O D R I V E G R O W T H I N P R E C I S I O N T E C H S A L E S A N D M A R G I N Evolution of CNH’s current Precision Tech portfolio Precision Tech sales contribution growth % of total Precision Tech cost % of Agriculture Net Sales 20% 10% ~10% 5.6% 75% 3rd
Slide 17: Precision Tech Evolution
PRECISION TECH EVOLUTION E V O LV I N G O U R P R E C I S I O N T E C H S O L U T I O N S TO M E E T FA R M E R N E E D S Current offering Launch by 2030 Supervised Autonomy / Full Autonomy Specialty Autonomy Autonomous Tillage Unmanned vehicles; fully self-operating Green-on-Brown Spraying Green-on
Slide 18: New Deal with the Dealers
NEW DEAL WITH THE DEALERS R EIN FO R C IN G PART N ER SHIP WIT H G R O WT H -O R IEN T ED DEAL ER S Maximize dealer Invest in growth-oriented Establish common engagement dealers back-end architecture 1 ~100 bps 100% Newly dedicated commercial Of annual margin invested Dealer network onboarded by org
Slide 19: CNH Multi-Brand Dealer Network
CNH MULTI-BRAND DEALER NETWORK B AL AN C IN G SIN G L E AN D DUAL-B R AN D DEAL ER S B ASED O N C USTO MER MIX , DEAL ER ST R EN G T HS, T ER R ITO RY C O VER AG E dealer dealer Dual-brand dealer Today Future state Key benefits Customers CIH “D” “E” (C+D) Faster and better service NH “A” NH “A” Deal
Slide 20: Agriculture Financial Targets
AGRICULTURE FINANCIAL TARGETS 20 20
Slide 21: Historical Margin
HISTORICAL MARGIN T H R O U G H - C Y C L E M A R G I N E X P A N S I O N D R I V E N B Y C O M M E R C I A L A C T I O N S A N D O P E R AT I O N A L E F F I C I E N C I E S Ag segment Adj. EBIT margin walk, 2021-2024 360 bps (200) bps (220) bps 370 bps (190) bps 12.3% (230) bps 130 bps 12.5% (200)
Slide 22: Advancing Iron + Tech Integration
ADVANCING IRON + TECH INTEGRATION GROWING THE PRECISION TECH BUSINESS BY 2030 Precision Tech evolution, % of Agriculture Net Sales 75-175 bps ~10% 50-100 bps 200-250 bps 5.6% +50-75 bps Adj. EBIT margin with higher Precision 2024 Increase in Aftermarket New products 2030E Tech mix by 2030 factory-fi
Slide 23: Driving Commercial Excellence
DRIVING COMMERCIAL EXCELLENCE G O -T O - M A R K E T T R A N S F O R M A T I O N Integrated and Partnership Enhanced customer- regionally-tailored with network centric service dealer network capabilities and brand strategy “New deal with the dealers” +50-75 bps Adj. EBIT margin by 2030 23
Slide 24: Operational Efficiencies
OPERATIONAL EFFICIENCIES I M P L E M E N T I N G O P E R AT I O N A L E F F I C I E N C Y A C T I O N S Strategic sourcing Plant efficiency Manufacturing footprint Multi-wave program Lean manufacturing Footprint reconfiguration launched in 2022, with initiatives, with ~100 projects initiatives, with
Slide 25: Quality as a Mindset
QUALITY AS A MINDSET A N E X P A N S I V E V I E W O F Q U A L I T Y W I L L D R I V E B E N E F I T S A C R O S S M U LT I P L E D I M E N S I O N S We take a 360-degree view of quality Driving impact across multiple dimensions Improved customer Total cost of non-quality loyalty and growing Dealers
Slide 26: Go-Forward Mid-Cycle Margin
GO-FORWARD MID-CYCLE MARGIN D R I V E N B Y C O M M E R C I A L A C T I O N S , O P E R AT I O N A L E F F I C I E N C I E S , A N D Q U A L I T Y I M P R O V E M E N T S Ag segment mid-cycle Adj. EBIT margin walk, 2024-2030 200-250 bps (50-75) bps (100-125) bps 0 bps 16.0-17.0% 200-250 bps 100-150
Slide 27: Mid-Cycle Margin Profile
MID-CYCLE MARGIN PROFILE DRIVING ANOTHER 350 -450 BPS OF MARGIN EXPANSION THROUGH THE CYCLE 2021 margin profile 2024 margin profile 2030E margin profile: upper & lower bound 20% 19% CNH Ag Segment Adj. EBIT margin 18% 350-450 bps 17% margin expansion by 2030 16% 16.0-17.0% 15% 2030E at mid-cycle 14%
Slide 28: Construction Segment Overview & Financial Targets
CONSTRUCTION SEGMENT OVERVIEW & FINANCIAL TARGETS 28 28
Slide 29: Construction Overview
CONSTRUCTION OVERVIEW W E L L- E S T A B L I S H E D B R A N D S T H A T G E N E R AT E S T R O N G E B I T A N D C A S H F L O W Net Sales by Region Top 5 Player in the Americas ~$3.5B Net Sales1 180+ ~70% NA EMEA APAC in the Americas ~50% ~25% Years of history ~5% LATAM ~20% 13 ~1,600 Product line
Slide 30: Construction Turnaround
CONSTRUCTION TURNAROUND S I G N I F I C A N T LY I M P R O V E D M A R G I N P R O F I L E O V E R T H E P A S T 4 Y E A R S Construction segment Adj. EBIT margin bridge, 2021-2024 90 bps 30 bps (40) bps (80) bps 260 bps 5.5% 2.9% 2021 Adj. EBIT Sourcing Manufacturing Parts and R&D investments SG&A
Slide 31: Go-Forward Strategy
GO-FORWARD STRATEGY CONTINUING TO DRIVE THROUGH-CYCLE GROWTH AND MARGIN EXPANSION Invest in Iron + Enhance Develop people Boost Cost Tech offerings distribution and talent aftermarket sales optimization New product Invest in select high- Partner with leading Expand attachments Plant efficiency launc
Slide 32: Product Roadmap
PRODUCT ROADMAP L A U N C H I N G N E W P R O D U C T S W H I C H I N T E G R AT E I R O N + T E C H 2022-2024 2025-2026 2027+ 30+ product launches New generations of core Integration of Iron + Tech & entry in 3 new categories1 products & digital offering Iron Heavy • Wheel Loader range extension •
Slide 33: Structural Margin Expansion
STRUCTURAL MARGIN EXPANSION E X P A N D I N G M A R G I N S B Y 1 5 0 - 2 5 0 B P S V I A S O U R C I N G I M P R O V E M E N T S A N D M A N U FA C T U R I N G O P T I M I Z AT I O N Construction segment Adj. EBIT margin walk, 2024-2030 50-75 bps ~(25) bps 0 bps 7.0-8.0% 50-75 bps 75-125 bps 5.5% 2
Slide 34: Structural Margin Profile
STRUCTURAL MARGIN PROFILE G E N E R AT I N G 1 5 0 - 2 5 0 B P S A D J . E B I T M A R G I N E X P A N S I O N B Y 2 0 3 0 2021 margin profile 2024 margin profile 2030E margin profile: upper & lower bound 9% 2030E margin 7.0-8.0% CNH Construction Segment Adj. EBIT margin 8% 7% 150-250 bps margin exp
Slide 35: Appendix
APPENDIX 35
Slide 36: Safe Harbor Statement and Disclosures
SAFE HARBOR STATEMENT AND DISCLOSURES 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) pe
Slide 37: Geographic Information
GEOGRAPHIC INFORMATION The composition of our regions part of the geographic information is as follows: • North America: United States, Canada, and Mexico • Europe, Middle East, and Africa (EMEA): member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine, B
Slide 38: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES CNH monitors its operations through the use of several non-GAAP financial measures. CNH’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH’s fi
Slide 39: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS investor.relations@cnh.com investors.cnh.com +1 (630) 740 8079 Jason Omerza jason.omerza@cnh.com +39 (345) 605 6218 Federico Pavesi federico.pavesi@cnh.com 39