Cnh Industrial N.v. · NYSE:CNH
Cnh Industrial — Q1 2015 Earnings Presentation
39 slides from Cnh Industrial's earnings presentation, May 19, 2015
Slide 1: CNH Industrial N.V. May 2015
Exhibit CNH May 2015 Industrial 99.1 N.V.
Slide 2: Agenda
CNH Industrial Overview Q1 2015 Results Summary FY 2015E US GAAP Guidance Agenda
Slide 3: CNH Industrial Products
CNHProducts Our Professional Best Full Note: May line lifecycle in 2015 Industrial All class distribution figures EUindustrial powertrain product are Roadshow—CNH are tiedprovided model together services equipment technologies with herein bywide Industrial Common andon commercial geographic a USPurp
Slide 4: Global Footprint
CNH2015 Global EMPLOYEES NAFTA LATAM MANUFACTURING EMEA APAC (December May Industrial 8% 8 4 Industrial 3417% LATAM 15% EMEA EU 2014) EMEA Roadshow—CNH (Total: Footprint 626LATAM NAFTA 60% FACILITIES 69k) (excl. 10 12 NAFTA Industrial JVs) R&D 13 CENTERS N.V. 4 (Total: 64) (Total: 49)
Slide 5: Well-Known Brands
CNH Well-Known Agricultural Brands ?Key May Commercial Iveco powertrains. Light Medium Heavy Commuter Touring Quarry Specialty Construction Case New Tractor Wheel Skid EU Graders Dozers Excavators FPT Powertrain 870 On-Road Off-Road Marineine 5Industrial Axles Transmissions Tractors Case New Steyr:
Slide 6: Technological Leadership in Powertrain
CNH Technological MAINTAINING COMBUSTION ENGINE MECHANICAL Advanced INVESTMENT environmental AFTER New HI-eSCR Selective eSCR) requirement BENEFITS? SYNERGIES Waste ENERGY BENEFITS ?BEST-IN-CLASS 3-8 base May 6EU Applications: Widest Efficiency: Performance: Strengthening Diesel Innovative Emission
Slide 7: Wide Global Dealer Network
CNH Wide GLOBAL Global NAFTA Ag Dealers’ APAC Trucks Construction Powertrain ?Network ²¹Over May Includes Sales Drives Realignment 976 2015 5,200 Industrial Distribution dealer /Ag EMEA CVs¹ CVs local distribution parts allows 7dealers DEALERS EU 8928? dealers parts 111 79 N/A 69 network relationshi
Slide 8: Integrated Financial Services Managed Portfolio
CNH Integrated MANAGED NAFTA 0.9 3.5% 14.4 7.6 4.8% 5.7% 6.0% 6.7% 3.2 EMEA 3% 2010 12% LATAM Trade 4% Wholesale 31% 71% CV CE 6% 59% Managed (December May 1.2 Financing TRADE Installment 2015 2011 Industrial Finance APAC 28% Portfolio* and EU 2012 /2014) AG PORTFOLIO 53% Roadshow—CNH diversified Ca
Slide 9: DJSI Leader
Growing Industry 87 DJSI Machinery Eligible CNH May872015 World Industrial companies: Leader Responsibly EU and – Roadshow—CNH Electrical Highest among for 4th 98and Admitted the consecutive score Equipment Sustainably Sustainability DJSIcompanies: Industrial world year 50 Leaders industry N.V. 11 9
Slide 10: Agenda
CNH Industrial Overview Q1 2015 Results Summary 2015E US GAAP Guidance Agenda
Slide 11: Executive Summary Q1 2015
Executive INDUSTRIAL Q1 223 5.6 7.2 412 NET 3.1 Dec. 0.02 2.7 Note: currency 11.9% $223mn basis restructuring ?down vs. May EU 11 Revenues Industrial Operating EPS Net$2.7bn 2015 ‘14 0.07 Roadshow—CNH 2015 31, SALES INDUSTRIAL vs. Industrial All $0.11 at on Q1down 2014 $0.02 last basis figures aSumm
Slide 12: Q1 2015 Results
Q1 2015 From ($mn) Industrial Operating Restructuring Income Net ($) EPS Basic May EU 12 Roadshow—CNH Income (basic) (diluted) 2015 Operating EPS Q1before taxes Activities 2015 Profit before /23 attributable 0.02 (Loss) (77) 0.02 expenses income 101 Q1 Profit 284 0.07 restructuring (143) 0.07 2014 (
Slide 13: Q1 Net Industrial Cash Flow
213 Q1 Cash NET ($MN) 23 (3,051) (2,691) 630 (88)172 2015 (55) INDUSTRIAL Flow (1,039) DEC EQUITY CHANGE Net (360) Change May EU (992) 31, (5) in – Change Roadshow—CNH Industrial 2015 NET EFFECTS Net IN NET Cash D&A CASH inIndustrial DebtDEBT Flow at Net CHANGE 2015 FLOW Industrial $(0.4)bn atOTHERS
Slide 14: Capex
TOTAL 142 -38% New 88 BY 9% Agricultural 6% Delta May Industrial 60% 29% 11% Q1 61% 19% 15% Commercial 14 2014 2015 CATEGORY SEGMENT 41% 5% 2015 Product % 30%CAPEX Q1 Q1 Activities—Capex Capacity EU’15 Equipment Vehicles 2015 &Roadshow—CNH Technology vs. ($MN) 50% Expansion Q1Powertrain ‘14 35% Cons
Slide 15: Q1 Liquidity and Debt Maturity Schedule
Q1 Liquidity Debt Available $2.3 $2.8 $3.4 $7.2 $1.0 As Cash 21Capital May ?COMPANY $8.9bn Increase operating Financial Negative $4.5bn differences $2.7bn EU 15Available Represents Ofof 03/31/2015 2015 Roadshow—CNH $2.5 which 2015 Maturity Undrawn 9M at of undrawn Market incurrency Services December
Slide 16: Q1 Focus on Net Debt
(44%) Q1 Focus Dec. 3.5 6.5 0.2 10.2 1.3 11.5 (4.7) (4.1) 2.7 Note: ?Memo: of Q4 3NET (2.5) (4.5) Key Capital Proactive decrease Add: 2015 2012) Bank Capital Other Net 1(3.3) Total 31, Subtract: INTERSEGMENT Numbers Highlights onDebt Dec. 2014 Intersegment Market Debt Industrial Represents May EU 16
Slide 17: Capital Market Activity
Capital Major €700mn €1.0bn 2.875% €1.2bn 2.750% $1.5bn 6.250% $254mn 7.875% 2014 7.250% Total Note: May 2015 2015 amount FX bond (5Y) (7Y) Market (7Y) (20Y) $/€ EU 2016 issues assumed outstanding Roadshow—CNH 2017 outstanding 2018 at 1.076 at 2019 $4.9bn (Face Industrial 2020 value 2021and N.V. 202
Slide 18: Industrial Activities
Industrial Activities Agricultural Construction Commercial Powertrain Equipment Vehicles Equipment
Slide 19: Industrial Activities Net Sales and Operating Profit
Industrial NET 1,201 6,356 7,213 2,308 (731) 2,438 Agricultural Other, Impact Q1 EUR, 1.370 $BRL, Note: May / AUD GBP 2014 2015 ’14 ‘14 2015 SALES 901 9% Net 412 (857) 223 40% 1.126 7% on Q1 vs. 1.655 0.897 Organic FOREIGN Activities BRL Sales: 250 1,077 774 P&L EU Q1 ’15 1.076 Equipment (US Roadsho
Slide 20: Industrial Activities Net Sales and Operating Profit by Segment
Industrial NET 2,308 2,577 3,706 5,625 7,213 1,201 2,037 -30.5% (23.9%) Y-o-Y OPERATING Q1 204 412 464 34 -56.0% 3-45.9% 20 36 2015 2014 +5.9%223 SALES -22.0% 901 %-11.7% 0(16.9%) Agricultural 7.9% 12.5% 2015 May EU Q1 change Activities (70) 774 2015 Roadshow—CNH 2015 Operating 0.0% 0.4% -100% ($MN)
Slide 21: Agricultural Equipment
Agricultural May 2015 EU Equipment Roadshow—CNH Industrial N.V.
Slide 22: Agricultural Net Sales and Operating Profit
Agricultural NET 12% 11% LATAM Tractors 58% 25% 17% Volume Negative OPERATING 45 23 12.5% 464 12 (15) 22 Q1 Net 204 15 (340) ?7.9%2015 Price NAFTA SALES sales Operating May EU & Combines 32% Operating ‘14 Financial Translation Mix were Equipment BY 45% APAC Roadshow—CNH 2015 resilience Volume PROFIT
Slide 23: Agricultural Inventory and Industry Outlook
Agricultural Inventory Industry AGRICULTURAL (MAJOR 0-40 40-140 Q1 NAFTA Q1-13 LATAM Company APAC ?Worldwide Overproduction (*) May EU 23First Production Excluding 2015 Roadshow—CNH HP 2015 quarter Q2-13 (19%) HP (2%) (44%) 2% Units (35%) FY EQUIPMENT) management Inventory 4% (14%) (26%) Equipment F
Slide 24: Agricultural Proactive Measures
Agricultural Proactive HHP (34%) NAFTA TOTAL (37%) Q1 Row Delta May 24 142015 Crop TRACTOR %Q1 (49%) (25%) ROW HHP Q1 measures 15 EU sector ’15 Equipment Q1 (41%) (5%) Tractor Roadshow—CNH CROP vs. 14 production PRODUCTION Q1 for Q1 PRODUCTION Production row ‘14 15 Mar14 Q1 crop scaled 14market (38%
Slide 25: Construction Equipment
Construction May 2015 EUEquipment Roadshow—CNH Industrial N.V.
Slide 26: Construction Net Sales and Operating Profit
Construction Q1 NET 17% 9% 53% APAC 47% ?Light 50% Volume Negative 37OPERATING 12Net 0.4% (27) 26 ?Q1 2015 NAFTA LATAM 21% SALES sales Heavy 3% Efficiency Improved May EU Operating ‘14 & 1Financial Translation Mix were Other Equipment BY EMEA PROFIT in / $602mn Breakeven Roadshow—CNH 2015 Volume res
Slide 27: Construction Inventory and Industry Outlook
Construction Inventory Industry CONSTRUCTION (LIGHT NAFTA Q1 Q1-13 Company LATAM ?APAC Worldwide Overproduction Note: for May EU 27First Heavy 2015 Roadshow—CNH 2015 As quarter Q2-13 (28%) 11% & Units (35%) FY ofmanagement Inventory Construction HEAVY) (4%) (19%) Q2 2015E Equipment Flat (5%) Q3-13 o
Slide 28: Commercial Vehicles
Commercial May 2015 EUVehicles Roadshow—CNH Industrial N.V.
Slide 29: Commercial Vehicles Net Sales and Operating Profit
Commercial NET 9% APAC Buses 42 (3.0%) ?77% Product (K 27.8 30.5 35.1 20.7 -1% 4.2 3.0 EMEA Q1 May EU 29Net units) ‘14 2014 2015 4.4 2.9 7% Roadshow—CNH 6.0 27.5 22.6 (7) (70) 2015 SALES Sales Specialty 11.9 16% volumes LATAM Volume mix +9% Financial Q1 Book order 25.9 3.1 at1in Vehicles 2015 BY $2.
Slide 30: Commercial Vehicles Inventory and Industry Outlook
Commercial Inventory COMMERCIAL (ALL Company Industry Q1 ?EMEA* *For Brazil, May First Dealer Reflects ‘13 2015 Q2 2015 EQUIPMENT) quarter Argentina Q2 2015, Units 12% and FY management Inventory aggregate EU ‘13 Vehicles 2015E Company increased 5% overproduction Roadshow—CNH Q3VEHICLES and to‘13 De
Slide 31: Powertrain
May 2015 EU Roadshow—CNH Industrial N.V. Powertrain
Slide 32: Powertrain Net Sales and Operating Profit
Powertrain NET 16% EMEA 8% NAFTA 9% 71% Engines KEY 89% Net equipment Operating Product Industrial SG&A Q1 May EU 32 2015 2% Roadshow—CNH sales 5% 2015 SALES HIGHLIGHTS expenses LATAM mix Gearboxes Financial third were efficiencies profit demand Captive BY party $901mn, APAC of reduction REGION& Res
Slide 33: Powertrain Units Sold
Powertrain Units ?Q1 ENGINES 5% TRANSMISSIONS 70k AXLES Transmissions Axles Engines May EU 33 Units ‘15 and Roadshow—CNH units, 2015 Sold upvs. sold 54% down sold 3.1% 3.1% up Q1 (% (17.6%) by to 1.4% ‘14 change 17.6% down at business external third 41.4k KEY vs. (8.2%) 8.2% party to y-o-y) Industri
Slide 34: Financial Services Key Highlights and Net Income
Financial KEY NET Negative ($MN) 86 -1.2% Delinquencies ?2014. Q1 Gross RoA Delta (**) May Retail Managed Q1 85 2015 2014 RoA 2015 ** ’15 INCOME? HIGHLIGHTS % were Margin originations =Q1 Q1 Profitability impact Services defined 2.1% EU portfolio* offset ’15 2015 /Roadshow—CNH on-book Average vs. Ne
Slide 35: Agenda
CNH Industrial Overview Q1 2015 Results Summary FY 2015E US GAAP Guidance Agenda
Slide 36: FY 2015E Guidance
?FY Note: May Full Net 2015E 2015 sales Guidance year EU US guidance of Industrial GAAP Roadshow—CNH – FXisFinancial $/€ confirmed Activities assumedTargets Industrial reflecting in at the 1.10range – N.V. current BRL/$ of36 $26-27bn, assumed currencywith at exchange 3.10 an operating rates asmargin
Slide 37: FY 2015E Segment Outlook
Construction FY The Agricultural Recovering Reduction ?Product Improved May EU 37 Announced Product Strong Unit Commercial Construction SG&A Excavator 2015E Roadshow—CNH Company 2015 volume specialization Q1 cost line operating –ofEnd manufacturing 2015 Operating Equipment. Equipment Structural reor
Slide 38: Safe Harbor Statement
Safe Certain include “should”, Forward-looking are results materially related sanctions, compliance interest price crisis, Company’s measures light periods in The often and AFM May EU 38 accordance such outside Roadshow—CNH its Company’s Harbor 2015 of of revised. and other or businesses, products;
Slide 39: Investor Relations Contacts
Investor ?Contacts e-mail: website: May EU 39Federico Noah Roadshow—CNH 2015 investor.relations@cnhind.com Weiss Relations www.cnhindustrial.com Donati – Investor –Team Head Industrial Relations of Investor N.V. North Relations America? +39 ? +1(011) (630)00—62756 887—3745