Cnh Industrial N.v. · NYSE:CNH
Cnh Industrial — FI CBM Holdings — Non-Deal Roadshow (September 2013)
52 slides from Cnh Industrial's roadshow presentation, Sep 27, 2013
Slide 1: CNH Industrial Investor Meetings September 26-30, 2013
Exhibit 99.1 INDUSTRIAL CASE STEYR NEW IVECO MAGIRUS POWERTRAIN FPT HEULIEZBUS CNH Investor September Industrial HOLLAND IH CONSTRUCTION ASRA DEFENCE BUS Meetings AGRICULTURE 26-30,TECHNOLOGIES 2013 AGRICULTURE CONSTRUCTION VEHICLES
Slide 2: Agenda
1 Appendix INDUSTRIAL CNH 765432Agenda September Introduction Key Business Outlook Conclusion Capital Investment Structure 26-30, Overview to CNH 2013 Highlights Considerations Industrial Investor Meetings 2
Slide 3: Speakers
CNHChiara Sergio CHAIRMAN Richard Max GROUP Andrea September Industrial INDUSTRIAL Marchionne Paulis Tobin TREASURER CEO CFO 26-30,– Speakers 2013 Investor Meetings 3
Slide 4: Overview of Combination and Structure Considerations
Overview PRE-COMBINATION INDUSTRIAL FI ~13% Fiat ~87% FPT IVECO Listed NEW Former Listing 100% CNH SHAREHOLDER Incorporated On Listed: Shares Loyalty Introduced Only 3After Special Specialty Sale Large Long-term Expected September years Shareholders New Industrial Industrial of shareholders merger m
Slide 5: Strategic Rationale for Capital Markets Structure
Rationale STRATEGIC INDUSTRIAL CNH Greater Secure Unified CAPITAL Simplify Create Attract Broaden Improve September apowertrain new scale share truly true stock credit research intra-group ownership for MARKETS 26-30, capital peer in aAND structure global liquidity, profile Combination developing an
Slide 6: Global Capital Goods Player
ABy 2012 INDUSTRIAL CATERPILLAR VOLVO CNH €26.1 KOMATSU MAN Cummins PACCAR Kubota NAVISTAR® SCANIA AGCO OSHKOSH 0Allison 321Source: Uniquely Global Leading Top Well September 10 Excluding Ranking Global player 20 positioned global Industrial INDUSTRIAL €15.8 top €7.8 Transmission €11.4 30 Company po
Slide 7: FY 2012 Revenues by Segment and Geography
FY CNH Commercial CASE €8.7bn €12.2bn NEW IVECO AGRICULTURE POWERTRAIN FPT CONSTRUCTION Note: 321€2.9bn Construction INDUSTRIAL Powertrain Trucks Agricultural Equipment GROUP RoW Europe Latin North September Excluding Construction Including 2012 America 17% Industrial Group HOLLAND America III /40%
Slide 8: Why Industrial Capital Goods
WhyIndustrial INDUSTRIAL CNH Lower Evolutionary, Product Customer Brand-loyal, Reliance Similar CONSTRUCTION CASE NEW POWERTRAIN FPT AGRICULTURE September IVECOThese HOLLAND CONSTRUCTION III capital business customer industrial range on willingness 26-30, Businesses well-functioning technologically
Slide 9: Diversified Brand Portfolio
CNH NEW STEYR Since and Steyr CASE For rollers, New IVECO A Product Astra Offers HeuliezBus Dedicated POWERTRAIN FPT With September Powerful range over material Industrial Holland more an has INDUSTRIAL produces 1895, HOLLAND aCONSTRUCTION III crawler MAGIRUS line of extensive full 170 been AGRICULT
Slide 10: Key Products and Market Positions by Segment
AGRICULTURAL INDUSTRIAL CNH Trading 2012 Key Global 10.6% €1.3bn² €12.2bn Harvesting Tractors STEYR Hay Planters Tillage Specialty 5.8% €503mn €8.7bn #2 Buses Trucks MAGIRUS IVECO HEULIEZBUS Medium Commuter Touring Quarry Firefighting Other (1.0%) (€30mn)2 #23 Light Heavy CASE NEW Tractor CONSTRUCTI
Slide 11: Global Footprint: Employees, Manufacturing and R&D
Global EMPLOYEES INDUSTRIAL CNH MANUFACTURING R&D (Total: North Latin Europe Rest Note: September of America CENTERS data America ~68k) 64) 49) Industrial World 62% 37 28 as 26-30, of387% 5914% 17% 10 13 December Footprint 2013FACILITIES Investor 31, (excl. 2012 Meetings JVs) 11
Slide 12: Sustainability Leadership: Dow Jones Sustainability Index
Growing Fiat MEMBER INDUSTRIAL CNH Dow Sustainability In Eligible Admitted ABB ALSTOM ATLAS CUMMINS INGERSOLL-RAND KOMATSU MAN METSO SKF VOLVO 1XYLEM SCORE 49 DJSI Economic 90 53 Environmental Our 46 Social Highest Average 88 September 47Scores Collaboration Company score Score Industrial1 AB Jones
Slide 13: Agenda
1 Appendix INDUSTRIAL CNH 765432Agenda September Introduction Key Business Outlook Conclusion Capital Investment Structure 26-30, Overview to CNH 2013 Highlights Considerations Industrial Investor Meetings 13
Slide 14: Key Investment Highlights
Key DEFENCE MAGIRUS ASTRA 1AGRICULTURE 5432Sector INDUSTRIAL 9876CNH NEW CASE POWERTRAIN FPT HEULIEZBUS BUS IVECO STEYR CONSTRUCTION September Well-Known Technological Wide Positive Global Fully-Aligned Favorable Strong LowInvestment HOLLAND Fundamentals III Valuation Distribution Balance Market 26-
Slide 15: Positive Sector Fundamentals
CNH AGRICULTURAL $51 $76 $70 $66 $62 $57 0.50 1.00 1.50 2.00 Wheat Corn Soybean TRUCKS Europe 322 423 437 447 484 513 South CAGR 2015E 2014E 2013E 283 290 308 315 338 347 CONSTRUCTION 0U.S 1,000 Multi-family Single-family Private Public Source: 2013 2012 2011 2010 2009 200 250 300 350 21400 Underlyi
Slide 16: Global Leadership and Diversified Operations
2 521Global EXTENSIVE INDUSTRIAL 45% Trucks Segment1 Equipment Revenues 40% Geography2 15% 2% Other CATERPILLAR® 28% Engines Construction 34% Agricultural 22% 19% Mining 9% Asia 33% Powertrain 75% Buses 81% Trucks/ 14% 37% 11% 30% 24% RoW 18% 26% 10% 2012 23% 62% 36% CNH €26.1 JOHNDEREE €34.0 VOLVO
Slide 17: Well-Known Brands
3 Well-Known INDUSTRIAL CNH TRUCKS Brands STEYR AGRICULTURAL IVECO MAGIRUS CASE HEULIEZBUS NEW POWERTRAIN FPT CONSTRUCTION IVECO: Case ownership FPT: New Steyr: Light Tractors Tractor On-Road Harvesting Medium Wheel Off-Road Key Hay Heavy Skid Marine Planters Commuter Industrial Excavators Tillage T
Slide 18: Technological Leadership
4Technological A INDUSTRIAL CNH Leading Affordable Leadership Sharing Global Best-in-class Widest Competitive Opportunities Strong Investment Engine September Powertrain complete vehicle base platforms powertrain improvement, of powertrain components 26-30, yet in portfolio of advantage Capabilities
Slide 19: Wide Global Distribution Network
Wide INDUSTRIAL 5CNH GLOBAL North Latin Western Rest Ag Trucks Construction Powertrain Global ~60 Dealers’ Sales Drives Long-standing Network 21Nearly September Dealer Includes 1,158 298 945 927 depots of America /Distribution America distribution parts 6,000 dealer /World Europe CVs CVs1 local Rela
Slide 20: Fully-Aligned Strategic Financial Services
6Fully-Aligned Strategic INDUSTRIAL Provides CNH FINANCE Financial Other PORTFOLIO Total BUSINESS Trucks Agricultural 22% MIX GEOGRAPHIC 78% Equipment €Construction 1Converted Retail Wholesale America RoW Latin Europe North €1.4 €1.8 €6.4 September Captive 8.9 (€BN)1 Wholesale Capital countries / CV
Slide 21: Favorable Financial Trajectory
7 Net INDUSTRIAL CNH €25,785 €24,289 €21,342 3.5% 2.9% 1.7% €900 €694 €369 CAGR: GROUP 8.0% 7.0% 5.1% €2,063 €1,690 €1,096 1% 2012 2011 2010 5.2% 4.1% €1,349 €993 2€872 September Favorable Including of sales income 9.9% 56.2% 37.2% TRADING REVENUES NET CAPEX 26-30, financial Financial before INCOME
Slide 22: Strong Balance Sheet and Liquidity Position
8 Includes Liquidity INDUSTRIAL CNH Strong €3.7bn €1.6bn Well Repaid Available Debt As €1.0 €1.4 €3.7 €2.0 €2.2 €2.7 €1.6 €5.3 Undrawn Cash Beyond 2017 2016 2015 2014 20132 Bank 1Capital 2Other September Strong Represents ofdistributed Maturity Debt 6/30/2013 available of undrawn CNH Market Balance
Slide 23: Favorable Relative Valuation versus Peers
9 Adjusted FV/2014 4.8x Price/2014 Median: 9.7x CNH N/A 6Consensus 3.5% Note: 4321(0.6)% September Low Month Market Noncontrolling Peers 9.8x 20.8x 11.4% INDUSTRIAL INDUSTRIAL1,2 INDUSTRIAL1 Balance Valuation include: 6.7x 12.7x ADTV EBITDA data 8.1x 15.7x 26-30, Revenue 2014E Net for EPS 13.4% disp
Slide 24: Agenda
1 Appendix 765432Agenda September Introduction Key Business Outlook Conclusion Capital Investment Structure 26-30, Overview to CNH 2013 Highlights Considerations Industrial Investor Meetings 24
Slide 25: Agricultural Segment Overview
Agricultural Segment INDUSTRIAL World-class #2 Worldwide 21Product Industrial 2012 2011 €10,189 €8,696 €12,184 % CAGR: €1,253 7.3% 2010 Significant Joint CNH New Al-Ghazi Turk September Ag Distributor of global Holland Traktor sales Equipment Venture 2011 8.9% de€907 18.4% 40.5% line Mexico Overview
Slide 26: Agricultural Competitive Landscape and Footprint
Footprint COMPETITIVE INDUSTRIAL Tractors Combines #2 #3 Manufacturing JV CNH Global Segment Construction Powertrain Trucks Agricultural 2012 Europe RoW Latin EMEA North Source: September AGCO Kubota CNH Manufacturing Industrial Group America 9% 17% 4% INDUSTRIAL America Market /51% Market 18% 40% M
Slide 27: Agricultural Key Strategy and Accomplishments
CNH Agricultural Globally, Focus Increased 2High More AE50 Nine TRACTOR 3T4060F Product Brand-loyal, Customers STRATEGY Leverage Emphasis Effectively Continued KEY NEW TD5 AGRICULTURE T6 T4 CX8000 Conventional CASE 370CVX A8800 MAJOR Opened New 1Greenfield September Awarded Mix Innovative Pricing Au
Slide 28: Trucks Segment Overview
CNH Trucks SEGMENT Develops, A Operates Industry The IVECO MAGIRUS 1HB €8,175 INDUSTRIAL % CAGR: €646 €300 €503 2010 3.7% SIGNIFICANT JOINT INTEREST PRODUCT LOCATION Nanjing, Naveco Med SAIC 50% Chongqing, Heavy September 34%1 % leading ofHEULIEZBUS only of Truck/Bus sales 6.8% 5.8% 2011 INDUSTRIAL
Slide 29: Trucks Competitive Landscape and Footprint
Footprint COMPETITIVE Market MANUFACTURING Manufacturing JV Global Segment 2012 Vans €35.3bn3 #1 DAIMLER €Cars #2 VOLVO Engines Power/Engines €11.7bn #3 MAN Asia Americas CNH #5 Construction €8.7bn Powertrain Agricultural Trucks RoW Latin Europe North 1Source: only; September 24.4bn Global VOLVO DAI
Slide 30: Trucks Key Strategy and Accomplishments
CNH 1Trucks Operating 2R&D Reduced Consolidated STRATEGY European Expansion Leading Technology Leveraging KEY Various Recently IVECO Establishment Sustainability, Specific MAJOR New Continuing Reshaping September Positioned European Euro plant ACCOMPLISHMENTS NEW INDUSTRIAL investment / Bus configur
Slide 31: Construction Segment Overview
CNH Construction SEGMENT Provides Worldwide Focus NEW 1CASE CONSTRUCTION CAGR: INDUSTRIAL €2,934 €2,784 €2,222 % €19 (€29)(1.3%) September 2012 2011 2010 (€30)(1.0%) Construction of0.7% sales INDUSTRIAL HOLLAND on14.9% aproductivity, full, 26-30, service OVERVIEW Equipment Equipment TRADING REVENUES
Slide 32: Construction Competitive Landscape and Footprint
Footprint COMPETITIVE Brazil Heavy #5 Light MANUFACTURING Manufacturing JV Global Segment 2012 Other €15.0bn #1 CATERPILLAR® €Mining #2 KOMATSU Industrial Construction, Asia Americas €7.3bn #3 VOLVO Engines CNH Construction €2.9bn #6 Powertrain Trucks Agricultural RoW Latin Europe North 1Source: Sep
Slide 33: Construction Key Strategy and Accomplishments
CNH 1Construction Operating 2R&D Footprint Shifted STRATEGY Reorganized Product Positioning Focus Expanded KEY CASE 621 SiteWatch Waste 321E M Russia/Eastern NEW Recycling CONSTRUCTION L230 FleetForce C September Positioned Rationalization series series FACCOMPLISHMENTS NEW compact skid INDUSTRIAL i
Slide 34: Powertrain Segment Overview
CNH Segment Powertrain SEGMENT Designs, Five Front Present Over Industry POWERTRAIN FPT 3-8 REVENUES €2,415 TRADING % CAGR: €141 4.8% 2010 MANUFACTURING Manufacturing September ofcylinder engine sales 475,000 €65 2011 2.7% INDUSTRIAL and €3,220 in 10.2% 47.3% leader produces Overview €107 rear appro
Slide 35: Powertrain Key Strategy and Accomplishments
Growth INDUSTRIAL 1CNH 2Vertically R&D Full 3Light Third Claas Ford Perkins Foton Modasa VDL Vermeer CAT Yutong STRATEGY Investment Continued Focus N67 Launch Presented At Start Leveraging KEY Significant Powertrain Ability Significantly September Vertical Investment Mitsubishi the line-up 570 Marin
Slide 36: Agenda
1 Appendix Agenda INDUSTRIAL 765432CNH September Introduction Key Business Outlook Conclusion Capital Investment Structure 26-30, Overview to CNH 2013 Highlights Considerations Industrial Investor Meetings 36
Slide 37: 2013 Industry Outlook
2013 INDUSTRIAL CNH COMBINES TRACTORS Agricultural 15% 35% 20 HEAVY LIGHT 10% Equipment Construction NAFTA EAME (5%)-(10%) 0% INDUSTRY FLAT Worldwide (5%) APAC Trucks FY Flat EU27 Vehicles 5% 1LATAM September As-‘13E 2013 --(5%) /25% per -10% 5% Industry (5%) 20% 40% and &Q2 CIS 26-30, Commercial 20
Slide 38: 2013 Industrial Guidance
INDUSTRIAL CNH “On 2013 TRADING REVENUES NET Up 1Between September Asbetween the per INDUSTRIAL Guidance guidance OUTLOOK1 back Q2 7.5% €1.4bn 26-30, MARGIN 3% 2013 ofand asthe and and follows:” earnings 2013 8.3% Group’s 4% DEBT €1.6bn Investor announcement performance Meetingsto 38date and our exp
Slide 39: Financial Policy and Capital Distribution
Financial INDUSTRIAL CNH CAPITAL Combination Top Excess DISTRIBUTION Expected Group’s Potential Long-Term Stable, September priority value liquidity net target to to Strategy DEPLOYMENT 26-30, Focus provide income, pay ismaximizing simplifies todividend needed dividends, achieve POLICY 2013 Overview
Slide 40: Agenda
1 Appendix Agenda INDUSTRIAL 765432CNH September Introduction Key Business Outlook Conclusion Capital Investment Structure 26-30, Overview to CNH 2013 Highlights Considerations Industrial Investor Meetings 40
Slide 41: Key Investment Highlights Summary
Manufacturer MAGIRUS CASE NEW IVECO STEYR HB 54321FPT INDUSTRIAL 9876CNH September Well-Known Technological Wide Positive Global Fully-Aligned Favorable Strong LowHEULIEZBUS POWERTRAIN is HOLLAND III CONSTRUCTION Relative Distribution ASTRA aBUS DEFENCE Balance Market Best-in-Class AGRICULTURE Secto
Slide 42: Agenda
1 Appendix Agenda INDUSTRIAL 765432CNH September Introduction Key Business Outlook Conclusion Capital Investment Structure 26-30, Overview to CNH 2013 Highlights Considerations Industrial Investor Meetings 42
Slide 43: Funding Structure: Current and New
Funding CURRENT NEW INDUSTRIAL Issuers Bond Treasury FINANCIAL New Global CNH Committed September funding America Inc. Capital Issuers FUNDING funding Structure Vehicles 26-30, revolving FUNDING structure LLC to SERVICES OPERATIONS platform continue STRUCTURE 2013and supports Investor STRUCTURE with
Slide 44: Evolution of Capital Structure
Ourenvisaged INDUSTRIAL Proposed €2.0bn New IVECO-Barclays WHERE Demerger €4.2bn €2.2bn All Over Wholesale Improve merger Core Global Medium CNH September Evolution bilateral Eurozone 20 $2.0bn Capital funding financing bonds revolving bridge international corporate term WE demerger from successfull
Slide 45: Debt Breakdown and Maturity Schedule
INDUSTRIAL CNH Strong €3.7bn €1.6bn Well Repaid GROSS Outstanding Securitization ABS Warehouse 21Sale NET Consolidated Gross Derivatives Net DEBT 6M Bank Capital Other Cash of Undrawn Total September Includes Net which 2013 Debt of distributed DEBT /Available Maturities & Cash Debt of Debt Debt2 Sec
Slide 46: CNH Capital LLC Financials
INDUSTRIAL CNH REVENUES $864 RETURN 1.67% PRE-TAX $248 45.0% NET Note: 2012 2011 2010 36.8% 35.8% 29.5% $214 $202 321$162 September Pre-tax Return NetINCOME $831 $320 2011 Capital margin Financials 1.99% 56.9% on margin ON INCOME 2012 $834 $330 26-30, average ($MN) LLC defined 1.90% 56.9% AVERAGE AN
Slide 47: Demonstrated Access to Funding
INDUSTRIAL Access Demonstrated Increased $150mn (undrawn, $750mn $500mn $600mn Additional $1.1bn $350mn Lehman $1,000 $3,000 $5,000 Funding $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 Total 1Q08 Term Structured ABS -Unsecured CNH $2,123 2009 September - - Total Facilities 2010 ABS 3rd Placement C
Slide 48: Funding Capital Structure Evolution
Funding INDUSTRIAL CNH CAPITAL 4% 11% 7% 5% 73% 2011 AT Strong Delinquencies Capital Profitability 1H INTERMEDIATE Unsecured Trend Secured Debt WHERE Progression Establishment Issuances Reduction Increased Further September 6/30/2013 2013 4% 6% 10% 11% 69% with 2012 portfolio structure 3% 4% diversi
Slide 49: Agenda
1 Appendix Agenda INDUSTRIAL 765432CNH September Introduction Key Business Outlook Conclusion Capital Investment Structure 26-30, Overview to CNH 2013 Highlights Considerations Industrial Investor Meetings 49
Slide 50: Financial Measures
Financial INDUSTRIAL CNH appropriate measures allocations CNHI Trading trading Gains/(losses) and Operating investments Net equivalents, Industrial September arekey Industrial monitors performance not Profit of Measures Activities, Profit financial 26-30, and representative caution and its (ii)Debt
Slide 51: Safe Harbor Statement
Safe INDUSTRIAL CNH Certain statements Company’s Factors worldwide farm issues, development exchange Kobelco worsening Eurozone Forward-looking Industrial reliance publicly This country the 2013. information at Holdings September 100 United Harbor document programs; Shareholders Fagriculture, statem
Slide 52: Investor Relations Contacts
GROUP Contacts INDUSTRIAL CNH –MANFRED FEDERICO NOAH +39(011)00-62756 ENZA +1(630)887-3745 KAREN September HEAD MARSALA WEISS INVESTOR KELLY OF 26-30, DONATI MARKEVITCH INVESTOR 2013 RELATIONS Investor RELATIONS Meetings TEAM52