CNH Industrial N.V. December 4 th 5 th, 2014

Transcription

1 CNH Industrial N.V. December 4 th 5 th, 2014

2 Agenda Introduction to CNH Industrial September YTD 2014 Results Summary FY 2014E US GAAP Guidance & FY 2015E US GAAP Outlook Five year Financial Targets Summary

3 CNH Industrial We have tools to compete 1 group 12 industry recognized brands 48 R&D centers 62 manufacturing facilities 190 national markets 71,192 6,300 7,710 $ 5,061 * employees individuals dedicated to innovation active patents owned million invested in R&D (December 2013) (*) Based on last 5 years IFRS at exchange rate of 1.35 USD/EUR 3

4 CNH Industrial Our Products are tied together by Common Purpose Professional industrial equipment and commercial vehicle customers Full line distribution model with wide geographic coverage Best in class powertrain technologies Full lifecycle product services Note: All figures are provided herein on a US GAAP $ basis unless otherwise indicated 4

5 CNH Industrial Company Overview FY 2013 INDUSTRIAL ACTIVITIES NET SALES BY SEGMENT NET SALES BY SEGMENT (FY 2013) 1 Powertrain 12% Construction Equipment 9% Commercial Vehicles 32% Agricultural Equipment 47% INDUSTRIAL OPERATING PROFIT BY SEGMENT (FY 2013) 2 Commercial Vehicles 3% Powertrain 8% Agricultural Equipment 88% GROUP REVENUES BY GEOGRAPHY (FY 2013) 3 APAC 11% LATAM 19% EMEA 42% Note: Group financials prepared under USGAAP standards unless otherwise stated ¹ Excluding financial services and before inter company eliminations ² Construction Equipment segment operating loss of $97mn not shown; ³ Including financial services and after inter company eliminations NAFTA 28% 5

6 CNH Industrial Industrial Activities Overview ($MN) Agricultural Equipment Commercial Vehicles Construction Equipment Powertrain 2013 Revenues 16,763 11,278 3,258 4, Operating Profit 2, (97) Operating Margin 12.0% 0.7% (3.0%) 4.2% 2013 Industrial Activities Net Sales by Product line Hay & Forage / Specialty 20% Harvesting Equipment 25% Tractors 55% Specialty Vehicles 9% Buses 12% Trucks 79% Other 3% Light Equipment 51% Heavy Equipment 46% Axles 9% Gearboxes 2% Engines 89% Key Brands Key Product Lines Tractors Harvesting Equipment Hay Tools Planters and Seeders Tillage Equipment Specialty Crop Equipment Light Trucks (Class 2 3) Medium Trucks (Class 4 7) Heavy Trucks (Class 8) Commuter Buses Touring Coaches Quarry and Mining Equipment Specialty Vehicles Tractor Loader Backhoes Wheel Loaders Skid Steer Loaders Excavators Dozers Graders On Road Engines Off Road Engines Marine Engines Industrial Power Generation Transmissions Axles 6

7 CNH Industrial Global Industrial Footprint (excl. JVs) EMPLOYEES (Total: ~71k) NAFTA 17% EMEA 59% APAC 7% LATAM 17% MANUFACTURING FACILITIES (Total: 62) R&D CENTERS (Total: 48) NAFTA 11 EMEA 33 NAFTA 13 EMEA 26 LATAM 10 APAC 8 LATAM 5 APAC 4 (December 2013) 7

8 CNH Industrial Well Known Brands and Deep Product Portfolio Agricultural Equipment Commercial Vehicles Construction Equipment Powertrain Brands Key Strengths Case IH: The premium agriculture equipment partner supporting customers around the world with a full line of innovative products, solutions and services that maximize productivity New Holland Agriculture: The farming generalist with a complete agricultural equipment product offering, specialized in livestock, hay & forage, cash crop, orchards & vineyards Steyr: The first choice of robust tractors for demanding customers in Europe, offering superior value and customized solutions to ensure sustainable success IVECO: Full line of commercial vehicles. Offers alternative fuel solutions and a unique engine technology achieving Euro VI limits with SCR only, improving total cost of ownership IVECO Bus: Full Range for Sustainable Public Transport. Unique SCR only Technology, best Euro VI packaging for bus. Very competitive Total Cost of Ownership. Leader in Gas and Hybrid powertrains. Specialty Vehicles: Firefighting: fullliner, global player. Global leader in Turntable Ladders. Defense vehicles: Leading global player with complete product portfolio of multi function, high mobility vehicles Case Construction: Full line offered globally, with leading positions in Brazil and North America in backhoe loader and skid steer loader segments New Holland Construction: More focused on Light line with access to CNH Industrial agriculture distribution networks and a recognized leader in the Brazilian construction industry FPT: Major global innovator in engine and emission control technology; performance leader with top ratings from 100 to 870 hp for onand off road, marine and stationary applications Recent Product Launches Magnum Rowtrac New CR Combine Stralis Hi Way Euro VI New Daily L200 Skid Steer Loader F Series Wheel Loader C11 Euro VI Cursor11 Euro VI 8

9 CNH Industrial Technological Leadership, Best In Class Powertrain Capabilities MAINTAINING TECHNOLOGICAL LEADERSHIP COMBUSTION New high efficiency fast combustion and Homogeneous Charge Compression Ignition (HCCI) in selected map areas THERMAL MANAGEMENT Variable flow water and oil circuit load and speed dependent ENGINE AFTER TREATMENT ENERGY RECOVERY AIR HANDLING Advanced turbocharger concepts with ball bearings and improved aerodynamics MECHANICAL EFFICIENCY Advanced low friction coatings and superfinishing HI escr New generation of High Efficiency Selective Catalytic Reduction (HIeSCR) with: Diesel Particulate Filter (DPF) integrated on SCR Innovative mixed oxides washcoat Enhanced Model based control ENERGY RECOVERY Mechanical waste heat recovery through power turbine linked to crankshaft or electrified ENERGY RECOVERY Waste heat recovery on exhaust line through Rankine steam cycle combined with control strategy for optimum system efficiency ENERGY SAVING Smart auxiliaries combined with energy management control BENEFITS Efficiency: increasing from 46 to above 50% Engine emissions: lowering CO2 emissions by 8% Performance: +10% for same displacement BENEFITS Emission solution: Fulfill future Stage V emission requirement (PN reduction) Packaging: Integration of DPF in current Tier 4B after treatment layout avoiding significant investments for vehicle installation BENEFITS Fuel efficiency: improving up to 5% Applications: Truck & Bus, AG/CE INVESTMENT IN KEY VALUE COMPONENTS Strengthening leadership and innovation pattern for cost efficient technologies Engine efficiency improvement, energy management and energy recovery are key drivers for total cost of ownership reduction and environmental care SYNERGIES ACROSS ON & OFF ROAD VEHICLE PLATFORMS Global platforms and localized designs Sharing of components and technologies over regions allowing synergies in R&D and operations Shorter time to market BEST IN CLASS POWERTRAIN OFFERINGS Widest powertrain product range in market with a 3 8 cylinder range and L displacement range Competitive advantage from integration and control capabilities for propulsion systems Opportunities to apply technological solutions on all product lines Strong base of non captive customers 9

10 CNH Industrial Wide Distribution Network with Long Standing Dealer Relationships GLOBAL DEALERS NAFTA Ag 1,024 Trucks / CVs N/A Construction 615 Powertrain 12 LATAM Ag 306 Trucks / CVs 76 Construction 76 Powertrain 8 EMEA Ag 911 Trucks / CVs 503 Construction 194 Powertrain 25 APAC Ag 946 Trucks / CVs¹ 859 Construction 204 Powertrain 59 Global dealer network provides worldwide distribution channel Nearly 6,000 dealers worldwide¹ ~60 depots distribute aftermarket parts within the dealer network² Dealers local relationships are a critical part of the value chain Sales / distribution channel for machines Drives parts and service revenue streams for the installed base Long standing dealer relationships provide a stable competitive advantage Network allows CNHI to cross sell products through existing channels (i.e., Ag and Construction) Nearly 6,000 dealers worldwide¹ ¹ Includes dealers of unconsolidated joint ventures ² Includes 7 parts depot joint ventures (December 2013) 10

11 CNH Industrial Growing Responsibly and Sustainably CNH Industrial Industry Leader for 4 th consecutive year DJSI World Machinery and Electrical Equipment Eligible companies: 98 Admitted companies: 11 CNH Industrial Highest score DJSI world industry average score CNH Industrial among the Sustainability Leaders 11

12 Agenda Introduction to CNH Industrial September YTD 2014 Results Summary FY 2014E US GAAP Guidance & FY 2015E US GAAP Outlook Five year Financial Targets Summary

13 Sep YTD 2014 Highlights Consolidated Revenues at $24.2bn down 1.5% vs. Sep YTD 2013 Net income at $621mn; net income before restructuring and other exceptional items at $773mn EPS at $0.46; EPS before restructuring and other exceptional items at $0.57 Available Liquidity as of September 30, 2014 at $7.9bn (inclusive of $2.5bn in undrawn committed facilities) Industrial Activities Net Sales at $23.2bn down 2.0% vs. Sep YTD 2013 Operating Profit at $1.6bn down $94mn vs. Sep YTD 2013 with margin at 7.0% Net Industrial Debt as of September 30, 2014 at $3.9bn Net Industrial Cash Flow in first nine months negative of $1.9bn 13

14 Sep YTD 2014 From operating profit to net income (US GAAP) ($mn) Sep YTD 2014 Sep YTD 2013 Δ Industrial Activities Operating profit 1,612 1,706 (94) Financial Services Operating profit Elimination & Other (255) (242) (13) Operating Profit 1,764 1,863 (99) Restructuring expenses (98) (32) (66) Interest expenses of Industrial Activities, net of interest income and eliminations (449) (382) (67) Other, net (254) (222) (32) Income before income taxes and Equity in income of unconsolidated subsidiaries and affiliates 963 1,227 (264) Income taxes (408) (541) 133 Equity in income of unconsolidated subsidiaries and affiliates (22) Net Income (153) Net (Income) / Loss attributable to non controlling interest 6 (157) (163) Net Income attributable to CNH Industrial N.V EPS (basic) (0.04) EPS (diluted) (0.04) 14

15 Sep YTD 2014 Net Sales Performance by Industrial Activities NET SALES ($MN) Sep YTD 2013 Sep YTD 2014 FY 2014E Target ~32bn 23,665 23,180 12,621 11, % 6.5% 2,426 2, % 7,727 7, % 3,081 3, % (2,190) (2,177) Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Eliminations & Other Industrial Activities FY 2014E Target 15

16 Sep YTD 2014 US GAAP Industrial Activities Net Sales Growth Composition NET SALES * ($MN) 23,665 3,081 23,280 (385) 3,397 (100) 23,180 3,476 REVENUES BY CURRENCY SEP YTD 2014 Other, 8% AUD, 3% 7, % 7, % 7,534 GBP, 2% CAD, 5% EUR, 36% BRL, 11% 2,426 2,598 2,546 12,621 11,889 11,801 USD, 34% Sep YTD 2013 Organic Growth Sep YTD constant currency FX impact Sep YTD '14 as reported Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain (*) Including Other Activities, Unallocated Items & Adjustment & Eliminations 16

17 Sep YTD 2014 Operating Profit Performance by Industrial Activities OPERATING PROFIT ($MN) Sep YTD 2013 Sep YTD 2014 FY 2014E Target $2.1/2.2bn 1,696 1,529 1,706 1, % 5.5% (44) n.m. (24) (71) +33.1% (40) (73) 195.8% Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Eliminations & Other Industrial Activities FY 2014E Target 17

18 Sep YTD 2014 Operating Profit Variance by Industrial Activities 1, ,529 (49) (6) (4) (22) (360) 13.4% 13.0% Operating Profit at $1.5bn, down 9.8% vs. Sep YTD 2013 Operating Margin at 13.0% down 0.4 p.p. vs. Sep YTD 2013 Sep YTD 13 Volume / Mix Pricing, net Prod. Cost SG&A R&D FX / Other Sep YTD (14) % Operating Profit at $70mn vs. loss of $44mn in Sep YTD 2013 (1.8)% (44) 16 Operating Margin at 2.7% up 4.5 p.p. vs. Sep YTD 2013 Sep YTD 13 Volume / Mix Pricing, net Prod. Cost SG&A R&D FX / Other Sep YTD 14 (24) (95) 6 (33) (71) Operating Loss of $71mn vs. a loss of $24mn in Sep YTD 2013 LATAM negative total impact of approx. $120mn Sep YTD 13 Volume / Mix Pricing, net Prod. Cost SG&A R&D FX / Other Sep YTD 14 Operating Margin at (0.9)%, down 0.6 p.p. vs. Sep YTD

19 Inventory management (units of equipment) Focus on Q3 14 AGRICULTURAL EQUIPMENT (MAJOR EQUIPMENT) CONSTRUCTION EQUIPMENT (LIGHT & HEAVY) COMMERCIAL VEHICLES (ALL EQUIPMENT) Company Inventory AG Retail Sales* Dealer Inventory AG Production* Company Inventory CE Retail Sales* Dealer Inventory CE Production* Company Inventory CVs Retail Sales* Dealer Inventory CVs Production* Third quarter overproduction vs. retail at 10% Production decreased 6% vs. Q3 13 and 12% vs. Q2 14 Lowest quarterly production volume since Q3 11 Company expects to significantly underproduce retail demand in Q4 14 Third quarter overproduction vs. retail at 9% Third quarter overproduction vs. retail at 2% LATAM underproduction vs. retail at ~20% 19

20 Agricultural Equipment Looking ahead our main strengths Quick actions for cost savings INDUSTRIAL FLEXIBILITY (K UNITS) GLOBAL PRODUCT MIXEXPOSURE Cash crop machinery SAVINGS UP TO 10% * Disciplined approach to balance supply with demand Single mission plants for selected HHP tractors and harvesting machinery Reduction of overtime and weekend premiums Reduction of outsourced components capacity protecting fixed cost plant absorption Line rate speed adoption to avoid "stop and go" Cost containment actions FUNCTIONAL COST FLEXIBILITY SAVINGS OF 5 10% ** Discretionary spending reduction in SG&A (non labor at ~50%) INDUSTRY DRIVERS Dairy & livestock machinery Specialty Maintain strong presence in mature markets (EMEA and NAFTA) focused on farmer productivity improvement Increase international expansion to first demand areas (China, India and Brazil) as a result of increased mechanization rate R&D flexibility on non regulatory projects A healthy and well diversified business model * Based on total segment structural manufacturing costs; ** based on total R&D and SG&A segment costs 20

21 Efficiency Program Main efficiency actions and restructuring charges in the first nine months: AG: primarily for the closure of a JV in China Total charges Sep YTD 2014 $98mn CE: mainly due to the re positioning of Case and New Holland brand offerings and the consequent alignment of their dealer networks and the announced closure of an assembly plant in Calhoun, Georgia CV: mainly due to actions to reduce SG&A expenses and business support costs as a result of the transition to CNH Industrial s regional structure Agricultural Equipment Construction Equipment Commercial Vehicles $28mn $34mn $36mn $98mn charges are expected to generate savings of ~$50mn on an annualized basis in

22 Latest Main Product Launches across Segments & Awards International launch held at beginning of June k units sold since launch Orders at ~20k since launch Van of the Year 2015 Magnum Rowtrac tractor Launched at Farm Progress Show New 2015 lineup of Farmall tractors Hay and forage tools unveiled AFS connect 2.0 w/ advanced telematics technology New Tier 4B Genesis T8 SmartTrax Optimized floatation and traction with minimized soil disturbance Purpose developed high clearance, high torque front and rear axles Powertrain signed a contract with the new customer Xiamen King Long United Automotive Industry Co., Ltd (King Long), for the supply of Euro VI compliant Cursor 9 engines for a new 12 metres coach Cursor 9 Driveline plant of Turin has been awarded the Silver Level certification in the WCM program M Series dozers named as one of the 2014 Contractors Top 50 New Products in North America Launched in Europe new F Series range of compact wheel loaders, four models New telematics SiteWatch ipad app worldwide New telematics FleetForce ipad app worldwide Dozer D140B localized in Contagem factory (Brazil) Received certificate of ISGE Benchmarking in Latin America for year

23 Sep YTD 2014 Cash Flow Change in Net Industrial Debt ($MN) NET INDUSTRIAL CASH FLOW (1,855) 552 (2,214) 621 (36) (3,935) $(2.2)/(2.1)bn (2,481) (588) (366) DEC 31, 2013 NET INCOME D&A CHANGE IN FUNDS & OTHERS CHANGE IN WC TANGIBLE & INTANGIBLE CAPEX CHANGE IN INVESTMENT, SCOPE & OTHER CAPITAL INCREASE, DIVIDENDS & EQUITY TRANSACTION FX TRANSLATION EFFECTS SEP 30, 2014 FY 2014E TARGET CHANGE INNET DEBT (1,721) 23

24 Net Industrial Debt A look at our beginnings When CNH Industrial 1 was demerged from the auto business (at December 31 st, 2010), 2.5bn ($3.4bn equivalent) of debt was allocated to CNH Industrial and the company started its life in 2011 with 1.9bn ($2.5bn equivalent) of net debt * During the first three years of our life we had ** : Cash Flow from Operating activities of ~$5bn Total Capex of ~$3bn Investments of ~$0.8bn Distributed a total of ~$1bn dividends (including ~$0.3bn extraordinary dividend to CNH Global shareholders) CNH Industrial plans to be net industrial debt free by end of 2018 * Figures under IFRS accounting standards; FX rate /$ ** Figures under US GAAP accounting standards 1 Formerly Fiat Industrial 24

25 Sep YTD 2014 Industrial Activities Capex breakdown BY CATEGORY TOTAL CAPEX ($MN) 19% New Products & Technology % Maintenance & Other 8.7% 36% Industrial Capacity Expansion & LT Investments BY SEGMENT 11% Sep YTD 2013 Sep YTD 2014 Agricultural Equipment Construction Equipment 40% Commercial Vehicles 44% Powertrain 5% Delta % y-o-y 25

26 Sep YTD 2014 Liquidity & Debt Maturity (September 30th, 2014) COMPANY AVAILABLELIQUIDITY Available Liquidity ($bn) Debt Maturity Schedule 1 ($bn) Available liquidity at September 30, 2014 was $7.9bn, compared to $8.7bn at December 31, 2013 $7.9 Proceeds from: 1bn bond ($1.4bn equivalent) at Dividend payment $1.0 $4.2 $3.0 $3.0 $2.6 $3.2 an annual fixed rate of 2.75%. The notes are due March 2019 $500mn bond issued by CNH Industrial Capital LLC, due July 2019, with a fixed rate coupon of 3.375% 700mn ($881mn) bond issued Cash utilized in operating activities, to support portfolio growth for financial services activities and by negative currency translation differences As of As of Q1 09/30/2014 3M Beyond by CNH Industrial Finance Europe S.A., due September 2021, with a fixed rate coupon of 2.875% Cash Undrawn M/T Committed Lines Bank Debt Capital Market Other $5.4bn of cash 2 1 Represents cash portion of debt maturities as of 09/30/ Of which $0.8bn ABS related & Restricted Cash $2.5bn undrawn under medium term committed unsecured credit lines 26

27 Agenda Introduction to CNH Industrial September YTD 2014 Results Summary FY 2014E US GAAP Guidance & FY 2015E US GAAP Outlook Five year Financial Targets Summary

28 FY 2014 US GAAP Guidance Despite challenging trading condition in the agricultural row crop sector particularly in NAFTA and the general depressed markets in LATAM in Agricultural Equipment and Commercial Vehicles, CNH Industrial is confirming its 2014 U.S. GAAP guidance *, as follows: Net sales of Industrial Activities at approximately $32bn Operating profit of Industrial Activities between $2.1bn and $2.2bn, with margin between 6.5% and 6.9% Net industrial debt between $2.2bn and $2.1bn at the end of the year Consolidated net income before restructuring between $0.9bn and $1.0bn, with earnings per share before restructuring between $0.69 and $0.74 * Guidance confirmed on October 30 th,

29 FY 2015E Industry Outlook units TRACTORS COMBINES Agricultural Equipment FY 2015E 0 40 HP Flat HP Flat 140+ HP (10)% to (15)% NAFTA Flat EMEA (5)% to Flat LATAM (5)% to (10)% APAC Flat to 5% Worldwide Flat FY 2015E NAFTA (10)% to (15)% EMEA (5)% to (10)% LATAM (10)% to (15)% APAC (5)% to (10)% Worldwide (10)% to (15)% LIGHT HEAVY Construction Equipment FY 2015E NAFTA 5% to 10% EMEA Flat to 5% LATAM Flat APAC Flat to 5% Worldwide Flat to 5% FY 2015E NAFTA 5% to 10% EMEA Flat LATAM (10)% to (12)% APAC Flat Worldwide Flat INDUSTRY (>3.5T) Commercial Vehicles EMEA LATAM APAC FY 2015E Flat Flat Flat 29

30 FY 2015E US GAAP Outlook Full Year 2014 operating profit to be held in Improved profitability in Commercial Vehicles and Construction Equipment, coupled with productivity actions and structural cost improvement measures from the Company s Efficiency Program are expected to offset projected challenging conditions in the row crop sector of the agricultural business Agricultural Equipment Commercial Vehicles Actions already begun in 2014 to align cost structure and inventory positions to protect segmental margins Reduced input costs will continue to benefit livestock and dairy sectors of the agricultural industry Trading conditions expected to remain challenging through 2015 (largely in harvesting and high horsepower row crop sectors in NAFTA and LATAM regions) Actions taken in cost structure, improved manufacturing productivity and reduced Euro VI related launch costs EMEA region flat in unit volume overall, and for trading conditions to remain challenging, but no worse in LATAM through 2015 Powertrain Construction Equipment Increased third party sales and manufacturing productivity improvements will offset headwind in AG Headwind of reduced volume demand in Agricultural Equipment Profitability improvement trajectory to continue in 2015 on the back of improved trading conditions in NAFTA and EMEA, and full year realization of the Company Efficiency Program 30

31 Agenda Introduction to CNH Industrial September YTD 2014 Results Summary FY 2014E US GAAP Guidance & FY 2015E US GAAP Outlook Five year Financial Targets Summary

32 Business Plan Financial Targets (US GAAP) ACTUAL (USD billions) E 2016E 2018E INDUSTRIAL ACTIVITIES Net Sales Operating Profit & Margin % % 6.9% % 8.3% % 9.0% CAPEX 1.2 ~ 1.2 ~ 1.2 ~ 0.8 Net Industrial (Debt) / Cash CAGR of 3.2% (2.2) (2.2) (2.1) (1.8) (1.5) Net Income* EPS 0.54 EPS EPS EPS * Net Income and EPS before restructuring for the plan period 32

33 Business Plan Balance Sheet Management Assumptions Driving towards investment grade while interest cost benefit not embedded in the plan Continued focus on rebalancing funding by gradually shifting from Bank Debt to Capital Markets (Capital Market at 50% of total funding at the end of 2013 to 60% at the end of the Plan * ) Financial Services increases stand alone funding and halves reliance on funding from Industrial Activities (Intersegment from $4b to $2b by 2018) * Financial Services rebalances funding sources by shifting to more unsecured funding Utilization of Public ABS market to benefit from its competitive cost structure Liquidity balances maintained at sound levels throughout the plan (15% of Revenue by 2018) Dividend payments assumed at 30% of Consolidated Net Income throughout the plan * Calculated on average debt balances Numbers may not add due to rounding 33

34 Capital Allocation Guidelines Capital to Value Generation cycle ORGANIC Investments Weighted towards the highest return on capital businesses Continued AG and CE expansion in APAC CV/CE product evolution and range extension Completion of Footprint rationalization Fuel efficiency and productivity Capital STRUCTURE Driving towards investment grade Healthy available liquidity Independent funding of FS Shift to unsecured funding while leveraging low cost of funding through the ABS markets Portfolio OPTIONALITY Inorganic growth opportunities RETURN Capital Dividend payout (30% of consolidated Net Income) guaranteeing steady growth in dividends Share repurchase program * *Share repurchase program subject to achieving investment grade and ensuring earnings are accretive 34

35 Safe Harbor Statement Certain statements contained in this earnings release that are not statements of historical fact constitute forward looking statements, notwithstanding that such statements are not specifically identified. These statements may include terminology such as may, will, expect, could, should, intend, estimate, anticipate, believe, remain, on track, design, target, objective, goal, forecast, projection, outlook, prospects, plan, or similar terminology. Forward looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the Company s control and are difficult to predict. If any of these risks and uncertainties materialize or other assumptions underlying any of the forward looking statements prove to be incorrect the actual results or developments may differ materially from any future results or developments expressed or implied by the forward looking statements. Factors, risks, and uncertainties that could cause actual results to differ materially from those contemplated by the forward looking statements include, among others: the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods related products; general economic conditions in each of the Company s markets; changes in government policies regarding banking, monetary and fiscal policies; legislation, particularly relating to capital goods related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; actions of competitors in the various industries in which the Company competes; development and use of new technologies and technological difficulties; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; housing starts and other construction activity; the Company s ability to obtain financing or to refinance existing debt;adecline in the price of used vehicles; the resolution of pending litigation and investigations; the Company s relations with Kobelco Construction Machinery Co., Ltd and Sumitomo (S.H.I.) Construction Machinery Co., Ltd.; the Company s pension plans and other post employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including further worsening of the Eurozone sovereign debt crisis, other similar risks and uncertainties; and the Company s success in managing the risks involved in the foregoing. Further information concerning factors, risks, and uncertainties that could materially affect the Company s financial results is included in our annual report on Form 20 F for the year ended December 31, 2013, prepared in accordance with U.S. GAAP and in our EU Annual Report at December 31, 2013, prepared in accordance with IFRS. Investors should refer and consider the incorporated informationonrisks, factors, and uncertainties in addition to the information presented here. Forward looking statements speak only as of the date on which such statements are made. Furthermore, in light of ongoing difficult macroeconomic conditions, both globally and in the industries in which CNH Industrial operates, it is particularly difficult to forecast results, and any estimates or forecasts of particular periods that are provided in this earnings release are uncertain. Accordingly, investors should not place undue reliance on such forward looking statements. Actual results could differ materially from those anticipated in such forward looking statements. CNH Industrial does not undertake an obligation to update or revise publicly any forward looking statements. The Company s outlook is based upon assumptions relating to the factors described in the earnings release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. The Company undertakes no obligation to update or revise its outlook or forward looking statements, whether as a result of new developments or otherwise. Further information concerning the Company and its businesses, including factors that potentially could materially affect the Company s financial results, is included in the Company s reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB 35

36 Contacts Investor Relations Team Federico Donati Head of Investor Relations +39 (011) Noah Weiss Investor Relations North America +1 (630) e mail: investor.relations@cnhind.com website: 36