UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2014
Commission File No. 001-36085
CNH INDUSTRIAL N.V.
(Translation of Registrants Name Into English)
Cranes Farm Road
Basildon
Essex SS14 3AD
United Kingdom
Tel. No.: +44 1268 533000
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A.
CNH INDUSTRIAL N.V.
Form 6-K for the month of May 2014
The following exhibits are furnished herewith:
Exhibit 99.1 | CNH Industrial N.V. Investor Day Presentations, May 8, 2014 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CNH Industrial N.V. | ||
By: | /s/ Roberto Russo | |
Name: | Roberto Russo | |
Title: | Corporate Secretary |
May 9, 2014
Index of Exhibits
Exhibit Number |
Description of Exhibit | |
Exhibit 99.1 | CNH Industrial N.V. Investor Day Presentations, May 8, 2014 |
Exhibit 99.1
|
Exhibit 99.1
Opening remarks
Richard Tobin
|
CNH Industrial
We have the Tools to Compete
1 12 48 62 190
group industry recognized brands R&D centers manufacturing facilities national markets
71,192 6,300 7,710 $ 5,061*
employees individuals dedicated to innovation active patents owned million invested in R&D
(*) Based on last 5 years IFRS at exchange rate of 1.35 USD/EUR (December 2013)
Opening remarks May 8, 2014 2
|
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
Opening remarks
May 8, 2014 3
|
CNH Industrial
The Macro Trends driving our Business Plan
The Industrialization of the farming business Infrastructure modernization
Mission flexibility and efficiency The competitive edge
Opening remarks
Micro Hybrid
Hybrid Transfer Box
Batteries
Cooling Engine ATS Gearbox
May 8, 2014 4
|
CNH Industrial
Plan Objectives
Expand world class agricultural business product portfolio and geographic reach
Re-position Construction Equipment brands and return to profitable growth
Fully realize the potential of the Commercial Vehicles new product pipeline
Leverage industry leading powertrain technologies investments commercial potential
Best in class product support and integration of support functions
Opening remarks May 8, 2014 5
|
CHAIRMAN Group Executive Council (GEC)
Sergio Marchionne
CEO GROUP
Rich Tobin
CHIEF OPERATING
OFFICERS NAFTA EMEA LATAM APAC IVECO POWERTRAIN
Brad Crews Andreas Klauser Vilmar Fistarol Stefano Pampalone Franco Fusignani Giovanni Bartoli
GLOBAL
BRAND Case IH New Holland Case New Holland
PRESIDENTS Ag Equipment Ag Equipment Iveco Construction Construction Parts & Service
Andreas Klauser Carlo Lambro Lorenzo Sistino Rich Tobin Rich Tobin Dino Maggioni
COMMERCIAL/
Chief Chief Precision Specialty
INDUSTRIAL Chief Manufacturing Chief Purchasing Solutions Vehicles
LEADERS Technical Officer Officer Quality Officer Officer & Telematics & GEC Coordinator
Dario Ivaldi Derek Neilson Adrian Pipe Annalisa Stupenengo Dino Maggioni Alessandro Nasi
SUPPORT/ Chief
President Chief Human
CORPORATE Financial Financial Resources
LEADERS Services Officer Officer
Oddone Incisa Max Chiara Linda Knoll
Opening remarks May 8, 2014 6
|
7 CNI
INDUSTRIAL
INVESTOR DAY
AUBURN HILLS
MAY 8TH, 2014
AGENDA
8:30 a.m. Opening Remarks
Case IH Brand
New Holland Agriculture
Precision Farming
Construction Equipment
Iveco
Iveco BUS
Specialty Vehicles
FPT Industrial
10:45 a.m. Break
Parts and Service
EMEA
APAC
LATAM
NAFTA
Manufacturing
12:35 p.m. Lunch
Financial Services
Q1 Results
Financial Forecast
2:50 p.m. Break
Q&A
Closing Comments
|
Investor day auburn hills may 8th, 2014
Case IH Brand
Andreas Klauser
|
Case IH Brand
Our Vision
To be the preferred partner in bringing innovative products and market leading agricultural solutions and services to our customers around the world
Our Focus
Large grain / Row crops Small grain / Cash crops Special crops
Case IH Brand May 8, 2014 9
|
Case IH: A Legacy
Our Heritage
Steiger tractors
are added to the
growing Case IH
IH launches the offering.
revolutionary Axial- Case IH expands its
Flow combine. application offering
Case IH introduces by acquiring Tyler
Case builds the first
gasoline-powered the world to Manufacturing.
tractor. precision farming
Jerome Increase Case founds with AFS.
the Racine Threshing
Machine Works in Racine,
Wisconsin.
1842 1869 1892 1924 1977 1985 1988 1995 1996 1998 2013
The first all-new
machine to come from
J.I. Case and Company the combined Steiger
produces the first steam The agricultural division
engine tractor. of International engineering of Case and Quadtrac is Case IH launches
Harvester is acquired. IH is introduced: the introduced. the first multiple-
Magnum. row sugarcane
harvester.
The world-famous Farmall
tractor is launched.
Case IH Brand May 8, 2014 10
|
Case IH Brand Positioning
Who We Are
Global provider of premium equipment Key segments
Powerful Reliable Highly productive
Large grain & cash crop producers Contractors Specialty crop producers
Case IH Brand May 8, 2014 11
|
Case IH DNA
Recognized Global Leadership Serving Professional Farmers
Leading Products
Quadtrac Axial Flow Magnum Patriot
Feature Innovation
High Service Level Dealer Network Focused on Professional Farmers
Case IH Brand May 8, 2014 12
|
Case IH Agriculture
Product Position by Customer Segment
Cane
Tractor Tractor Rotary Conv. Hay & Planting
Specialty Tillage Cotton Sprayer
< 140hp > 140hp Combine Combine Forage Seeding
Coffee
Large Grain & Row Crop
Small Seed & Grain Crop
Contractors
Specialty Crops
Livestock, Hay And Forage
Vegetable & Fruit Row
Crop
Orchards & Vineyards
Govt & Municipality
Hobby Farmers
Case IH Position New Holland Position
Case IH Brand May 8, 2014 13
|
Industry Dynamics
Case IH Worldwide
Market Trends
Mature Markets
Scale and productivity of farms Shorter working window Higher fuel costs Engineered crops proliferation
More value differentiation in product < 140 hp Off-road emission regulations mandating compliance Agronomics, logistics, fleet mgmt. decision support systems Crop and risk management systems
Emerging Markets
Ag mechanization growth Food sustainability Cost sensitive solutions Initial emission regulations
Case IH Brand May 8, 2014 14
|
Key Product Strengths
Case IH Crop Cycle Solutions
Field Preparation: number 1 in Tillage in NAFTA Planters: Superior Seed Placement Accuracy Sprayers: Innovative Application Control Technology Combines: Best in Class Grain Quality Tractors: number 1 world wide in Track Technology
Case IH Brand May 8, 2014 15
|
Crop Production
Key Product Strengths and Market Position
TILLAGE
N.1 market position in North America
New tillage and fertilizer applicator launches Leverage NAFTA agronomic strength worldwide
Early Riser row units deliver superior seed placement accuracy
New planter technology for improved farmer productivity Leverage NAFTA agronomic strength worldwide
Key Growth Actions
PLANTERS
Key Growth Actions Case IH Brand May 8, 2014 16
|
Crop Production
Key Product Strengths and Market Position
SPRAYERS
Key Growth Actions
SEEDING
Key Growth Actions
Optimized productivity from exclusive AIM Command
New Model Configurations in NAFTA and LATAM Tier III Engine for APAC and EMEA
Precision Seeding systems offer multi-crop flexibility and expanding our market presence
Update and expand line of air carts and air drills Focus on WW dealer distribution strategy
Case IH Brand May 8, 2014 17
|
Sugar Cane Harvesters
Key Product Strengths and Market Position
Features
Multi-Row full launch in October 2014
Smart Cruise
Auto-Tracker
Global Market (2013)
Total industry volume of 2,000 units Primary markets
LATAM74% of Industry
APAC21% of industry (India and China)
Key Growth Actions
Develop new product lines and localization for India Complete development of Multi-Row Harvester Market expansion in India, China, Thailand and Africa
Case IH Brand May 8, 2014 18
|
Combine Harvesters
Key Product Strengths and Market Position
N.2 WW for Rotary Combines
Features
Unique CVT (Continuously Variable Transmission) offering Best in class cab Unique self-leveling cleaning system Best in class grain quality
Key Growth Actions
Develop new product lines and localization in APAC Localize production and model development in LATAM
Leverage SCR engine technology vs. competition
Case IH Brand May 8, 2014 19
|
Key Product and Technology: High HP tractors
Key Product Strengths and Market Position
N.1 WW for High Horsepower Track Solutions
N.2 WW for High Horsepower Tractors
Features
Industry leading Quadtrac technology Best in class fuel efficiency Best in class operator environment CVT transmission offering
Key Growth Actions
Increase HP ranges
Extension of track offering across the line-up Extension of CVT offering across the line-up Localize production and models in APAC
Case IH Brand May 8, 2014 20
|
Case IH Rowtrac
The Best Solution for Row Crops
REFERENCE
INDEX ROWTRAC
COMPETITOR
HORSEPOWER Rated horsepower 370 500
TRACTION Number of tracks 2 4
COMPACTION Ground PSI 12.48 11.38
TURNING POWER Power in turns Skid steer Full power
in turns
OPERATOR COMFORT Cab suspension No Yes
3 pt. hitch lift
CAPACITY 15,300 lbs. 20,000 lbs.
capacity
HYDRAULIC FLOW Max. Up to 60 Up to 113
FUEL TANK CAPACITY Gallons 184 250
Case IH Brand May 8, 2014 21
|
Network Strategy
Mature and Emerging Markets
Mature Markets: Consolidation
Leverage financial strengths, stability Improve customer services, experience Improve technical service capabilities
Emerging Markets: Expansion
Expand key geographic areas Improve coverage, density
Improve service quality and customer experience
Case IH Brand May 8, 2014 22
|
Growth Strategies
Target Professional Farmers Deliver Best in Class Solutions Expand in Emerging Markets Strengthen Dealers & Widen Service Offering
Case IH Brand May 8, 2014 23
|
New Holland Agriculture
Investor day auburn hills may 8th, 2014
Carlo Lambro
|
New Holland Agriculture
Brand Statement
The farming generalist with a complete agricultural equipment product offering, specialized in livestock, hay & forage, small seed crop, orchards & vineyards.
A global presence with customer proximity through a strong dealer network and industry-leading solutions for profitable, sustainable agriculture
May 8, 2014 25
|
New Holland Agriculture
Our History Over 100 Years of Innovation
Fiat Trattori In 1991 Fiat Geotech
became FiatAgri purchased Ford New
and
Merger
First FIAT Case IH
tractor built FiatAgri acquired Meger FiatAgri New Holland
Braud and Fiat Allis
1895 1906 1917 1918 1947 1964 1974 1984 1986 1988 1991 1998 1999 2006 2011 2013
Ford first New Holland Ford bought Sperry New Holland
tractor built changed its name and formed
into Sperry New Ford New Holland Inc
Holland
New Holland
was founded In New Holland acquired Bizon,
Pennsylvania by Sperry New Holland combine manufacturer based
Abe acquired Claeys in Płock, Poland
Zimmermann
Claeys was founded In
Zedelgem by Leon Claeys
HISTORY ACQUISITIONS/MERGERS INTEGRATION
New Holland Agriculture May 8, 2014 26
|
New Holland Agriculture
The Broadest Product Offering
AGRICULTURAL TRACTORS
T4F/V/N TK4000 T4 T5 T6 T7 T8 T9
Specialty tractors Medium horse power tractors High horse power tractors
HARVESTING & COMPACT TRACTORS
Rotary Conventional Conventional Forage Grape Harvester Boomer Rustler Telehandler
Flagship Value Harvester
Combines Self Propelled Forage Harvester Compact tractors
HAY AND FORAGE & APPLICATION EQUIPMENT
Round Large Disc Mower Tedders Wheel rake Air Carts / Air Sprayers
Balers Square Conditioner disk drills
Balers
Hay & Forage Application Equipment
New Holland Agriculture May 8, 2014 27
|
New Holland Agriculture
The Clean Energy Leader®Sustainable, Efficient Technology
The New Holland Clean Energy Leader strategy is based on four key pillars:
1. GROWING ENERGY 2. EFFICIENT PRODUCTIVITY
Biodiesel Bioethanol Biomass
The Energy Independent Farm
Tier 4A and Tier 4B Technology Precision Land Management (PLM) Innovation
3. SUSTAINABLE FARMING 4. COMMITTED BRAND
Carbon Footprint EcoBraud Conservation Agriculture
Plant Certification Recycling
Dow Jones Sustainability Index sector leader
New Holland Agriculture May 8, 2014 28
|
New Holland Agriculture
Engine Technology
THE NEW HOLLAND COMPETITIVE ADVANTAGE
New Holland ECOBlue HI-eSCR Technology
Business as usual. Performance unmatched.
Tier4 Final implementation for the North American and European markets with FPT Hi-eSCR engine technology providing best in class solution for:
Performance Efficiency Simplicity Consistency
Consistency
0 1 2 3 4 5 6 7 8 9 10
0 0.1 0.2 0.3 0.4 0.5 0.6
PM NOx
Tier-4B (2014)
Tier-4A (2011)
Tier-3 (2006)
Tier-2 (2002)
Tier-1 (1996)
New Holland Agriculture May 8, 2014 29
|
New Holland Agriculture
Product Position by Customer Segment
Specialty Cane
Tractor Tractor Rotary Conv. Hay & Planting
(Tractor + Tillage Cotton Sprayer
< 140hp > 140hp Combine Combine Forage Seeding
Grape) Coffee
Large Grain & Row
Crop
Small Seed & Grain
Crop
Contractors
Specialty Crops
Livestock, Hay And
Forage
Vegetable & Fruit
Row Crop
Orchards &
Vineyards
Govt &
Municipality
Hobby Farmers
New Holland Position Case IH Position
New Holland Agriculture May 8, 2014 30
|
Key Product Strengths
Industry Leading Conventional Combine Technology Number 1 Worldwide in Specialty Segment Worldwide Leader in Hay & Forage Equipment Advanced Solutions for Mid-Range Tractor Applications Complete Tier4b Compliance Product Offering
New Holland Agriculture May 8, 2014 31
|
Tractors
Key Product Strengths and Market Position
Number 2 Worldwide in Mid-Range Horse Power Segment
T5 T6 T7 segment:
Features
Eco BlueTM HI-eSCR
3 levels of transmission technology Best in Class Operator environment
Single touch screen monitor can allow control of both tractor and precision farming functions Higher traction levels while reducing soil compaction
Key Growth Actions
New tractor (CCM heavy duty) launch in EMEA, 2015 Fully renewed range (localized production) in LATAM, 2014 to 2016 Utilize CNH Industrial low cost country manufacturing locations to serve NAFTA value segment
New Holland Agriculture May 8, 2014 32
|
Hay & Forage
Key Product Strengths and Market Position
Number 1 Worldwide in Hay & Forage
Balers segment:
Features
Higher capacity and higher density designs Ability to control tractor speed to maximize capacity without constant operator intervention Heavy-Duty models for professional contractors with configurations specific for Europe and NAFTA New high-capacity Rotor Feeder and Rotor Cutter models
Key Growth Actions
Leveraging leadership H&F position for further growth in LATAM and APAC
New launches (big balers heavy duty and roll belt) in EMEA
New Holland Agriculture May 8, 2014 33
|
Specialty
Key Product Strengths and Market Position
Number 1 Worldwide in the Specialty Segment
Self Propelled Grape Harvester and Specialty Tractors:
Features
Suspended SuperSteer Front Axle for best in class 4WD maneuverability and driving comfort Tractors link with Braud harvesters: same driver interface and vehicle to vehicle connectivity BraudOpti-GrapeTM system
Key Growth Actions
Leverage leader position in the segment to further grow in NAFTA
Launch new premium product in EMEA
Launch both new harvesters and specialty tractors in LATAM Product offering for coffee, orange and small fruit harvesting
New Holland Agriculture May 8, 2014 34
|
Combine Harvesters
Key Product Strengths and Market Position
Number 1 Worldwide in Conventional Combines
Flagship and Value Conventional segment:
Features
Best in class productivity
New Harvest SuiteTM Ultra BIC cabs
SmartSieveTM self leveling cleaning with Opti-FanTM system Triple-CleanTM system: 15% increased cleaning in major crops
Key Growth Actions
Additional localized model in Latin America Develop new product lines and localization for APAC New product features to consolidate strong European position
New Holland Agriculture May 8, 2014 35
|
Conventional Combine
New Holland is the Global Leader
COMPARISON REFERENCE NEW HOLLAND
INDEX COMPETITOR FLAGSHIP
ENGINE POWER Max Power 305-449hp 333-490hp
CAPACITY Tonnes/hr 100% 110%
THRESHING Drum dia 600mm 750mm
CLEANING Area 4.8-5.8m2 5.4-6.5m2
Volume
GRAINTANK STORAGE 8,000-11,000 9,000-11,500
(litres)
UNLOAD SPEED Litres/Sec 110 125
SLOPE COMPENSATION System Used Top Sieve Side Cleaning Shoe
Shake Levelling
BEST PRODUCT AVAILABLE IN THE MARKET
New Holland Agriculture May 8, 2014 36
|
New Holland Agriculture
The Largest Dealer Network
Full territory coverage
Proximity to customers
Fast response in service and parts
2013 Basis
REGIONS DEALERS IMPORTERS POINTS OF SALE
NAFTA 640 950
EMEA 540 65 1,200
LATAM 120 30 350
APAC 800 40 2,100
WORLDWIDE 2,100 135 4,600
New Holland Agriculture May 8, 2014 37
|
New Holland Agriculture
Brand Initiatives
CUSTOMER CENTERS SOCIAL MEDIA
Brand website Digital community
Mobile apps offering services to customers
EXPO 2015 METHANE TRACTORS
Feeding the planet, energy for life
Working prototype
4 customer centers
(Belgium, UK, Brazil, Italy)
New Holland Agriculture
May 8, 2014 38
|
New Holland Growth Strategy
Leverage new product introduction Provide Industry-leading Offer the widest agricultural in mature markets and expand solutions for efficient and equipment product range geographical presence in emerging sustainable farming markets
Through a Strong Dealer Network ensuring Proximity to Customers and Complete Business Solutions
New Holland Agriculture
May 8, 2014 39
|
Investor day auburn hills may 8th, 2014
Precision Farming
David Larson
|
Executive Summary
CNH Industrial Precision Farming Direction
1. CNH Industrial Precision Farming base technology
Increasing integration into core products
Some technologies also utilized in Construction and Commercial Vehicles
2. Roles of participants in the Precision Farming market are changing
Telematics will create new data centric opportunities Open Data architecture will become a paradigm for OEM CNH Industrial is well positioned for the evolving market structure
3. CNH Industrial will create alliances with best in class technology providers
Integrating components from these providers into core products To develop open and secure data systems To deliver best in class, flexible, and innovative products
CNH Industrials goal is to enable our customers to realize
full value from their machines and machine data
Precision Farming May 8, 2014 41
|
Precision Farming Product Offering
Major Product Families and Customer Drivers
Factory and dealer installed solutions
Creating value for our customers through the farming cycle: Planting, Growing, Harvesting & Planning
Application Attribute & Yield Telematics &
Guidance
Control Monitoring Integrated Solutions
Displays
Improve efficiency Lower input costs Increase yield Support decisions
Guide the correct Plant/ fertilize / Understand Select paths and turns spray only where needed in-field variability the right seed and fertilizers
CNH Industrial Complete Precision Farming Product Offering
An Integral Part of All New Products Built in not Added On
Precision Farming May 8, 2014 42
|
CNH Industrial Market Facing Approach
Common System with Branded Offerings for Case IH and NH
Precision Farming Brands
Single Precision Farming System across Product Lines, Regions and Brands
Case IH and New Holland offer uniquely branded offerings comprised of common CNH Industrial Precision Farming System components
Precision Farming May 8, 2014 43
|
Precision Farming: Evolution
From a Focus on Single Machine to a Total System Approach
Precision Farming Evolution
Today
Machine Systems
Enabled by
Location based Telematics Based
machine control
Guidance Systems Data Systems
Capability Section control
Yield Monitors Decision Support
Sub-Inch Accuracy Variable Rate Logistics Mgmt
Machine Auto Guidance Application Control Machine Productivity
Crop Yield Mapping Section Control Feedback Systems
Phase I Phase II Phase III
Simple User interface & User experience
Connected telematics platform Open Standard data systems Integrated into machines
CNH Industrial
System Priorities
Moving from a single machine to an integrated system of connected vehicles
with four key system priorities driving the user experience
Precision Farming May 8, 2014 44
|
Agricultural Ecosystem
Simple - Connected - Open Integrated: From Machine Utilization to System Optimization
Machines communicate across Agricultural Ecosystem the Ag Ecosystem through INTEGRATED by data flowing OPEN & secure across Precision Technologies flow of data and Ag Service Providers
Successful delivery of an integrated-connected Ag Ecosytem is becoming a major driver for future equipment purchase decisions
Precision Farming May 8, 2014 45
Single machine optimization with SIMPLE Precision Agriculture Technologies
Efficient systems of CONNECTED machines to manage specific Agricultural processes
|
Market Evolution
Roles of Precision Farming Companies Evolving
Farmers
OEM INPUT PROVIDERS
TECHNOLOGY PROVIDERS
As precision technology costs go down & become integrated into OEM machines
Move from after market hardware-software to factory integrated hardware plus apps OEM & Input providers connecting through open data exchange bypassing traditional technology providers
Disintermediation of Traditional Technology Providers Roles
May 8, 2014 46
Precision Farming
|
Market Evolution
Roles of Precision Farming Companies Evolving
Farmers
OEM INPUT PROVIDERS
NEW PLAYERS IT & Data Companies
TECHNOLOGY
CLOSED TECHNOLOGY PROVIDERS
COMPONENT SUPPLIERS
As precision technology costs go down & become integrated into OEM machines
Move from after market hardware-software to factory integrated hardware plus apps
OEM & Input providers will leverage core competencies through open data exchange bypassing traditional technology providers Technology providers try to defend their business by closing data formats & gateways
Others will move to tighter linkage with OEMs as component suppliers
Open data exchange key for CNH Industrial to connect & integrate equipment
New Players from other businesses entering in the Ag data market/ ecosystem Precision Farming May 8, 2014 47
|
Telematics Next Major Evolution in Farming
From a Focus on Single Machine to an Ecosystem Approach
CNH Industrial Telematics Data Transmission System Data Management Benefits
Case IH & New Holland Grower Customers
Easy transfer of data from machines to office, mobile devices, suppliers, advisors Improve operator & machine productivity through better feedback systems Link machines together to enable total system optimization Improve fleet logistics & remote monitoring of machine health
Case IH & New Holland Dealers
Remote diagnostics & machine locator Proactive service contracts Machine prognostics: Identify potential problems before they occur
CNH Industrial
Data for improved machine testing routines Feedback on machine design and setup
Telematics data: Creating benefits for growers, dealers, equipment manufactures
Precision Farming May 8, 2014 48
|
Highly Focused on Data, the Enabler of Business in Future
Connectivity Platform Enables Data Exchange
Farmer
CNH Industrial Branded Telematics Offerings
Seed Providers Insurance Companies Technology Providers Agronomists Fertilizer Providers
CNH Industrial Connected System
Control user experience Single point access SecureOpen data standards Free data exchange Simple user interface
AFS-PLM Connect: Secure but Open single point of access
connecting machines to multiple participants in the Ag Ecosystem
Precision Farming May 8, 2014 49
|
AFS & PLM Business Evolution
Global Strategy
THE AFS / PLM AG ECOSYSTEM
TODAY
Guidance Lightbars Auto Guidance Variable Rate
Rate & Section Control
Yield Mapping ISOBUS Controls Water Management TOMORROW
Wireless Data
Transfer
Remote Fleet
Management
Remote Diagnostics
Coordinated Machine Operation
App Based Machine Control
Semi-Autonomous
Farming
Full range of products & services to meet the current and future needs of growers
for year round management of land, labor, inputs and associated data
Precision Farming May 8, 2014 50
|
FARM WITH PRECISION
Precision Farming May 8, 2014 51
|
Investor day auburn hills may 8th, 2014
Construction Equipment
Richard Tobin
|
Our History
Case and New Holland Construction Equipment
OEM Agreement
M&A
Birth of DROTT
Case
CNH
1842 1946 1968 1974 1976 1987 1992 1998 1999 2002 2005 2013
CNH
Fiat entry
into CE 5 Brands
business Acquisitions Consolidated
Alliance
JV with Hitachi with Kobelco
Construction Equipment May 8, 2014 53
|
Product Line Up
CNH Industrial Construction Equipment
Light Equipment Heavy Equipment
Tractor Loader Backhoes Crawler Excavators Mini Excavators Wheel Loaders Compact Wheel Loaders Wheeled Excavators Skid Steer Loaders Dozers Telehandlers Graders Rough Terrain Forklifts Compactors
Construction Equipment May 8, 2014 54
|
Main Light Product Lines Profile
CNH Industrial Construction Equipment
2013 Industry: 81k units
Tractor Loader Largest markets: India, North America, Brazil
Backhoes Applications: building construction, rental, utilities & civil engineering
CNH Industrial product range: from 14 to 15 ft (digging depth)
2013 Industry: 125k units
Mini Excavators Largest markets: Europe, North America, Japan, China
Applications: rental, building construction, landscaping
CNH Industrial product range: from 1.1 to 5.6 tons (operating weight)
Skid Steer / 2013 Industry: 93k units
Compact Track Largest markets: North America, Middle East
Applications: building construction, agriculture, landscaping
Loaders CNH Industrial product range: SSL from 1,300 to 3,000 pounds (op. load)
2013 Industry: 23k units
Compact Wheel Largest markets: Japan, Germany
Loaders Applications: landscaping, rental
CNH Industrial product range: from 50 to 80 hp
Source: Industry 2013 AEM actuals
Construction Equipment May 8, 2014 55
|
Main Heavy Product Lines Profile
CNH Industrial Construction Equipment
Crawler Excavators
Wheel
Loaders
Dozers
Graders
2013 Industry: 167k units
Largest markets: China, Japan, North America
Applications: building construction, rental, infrastructure
CNH Industrial product range: from 7.5 to 81 tons (operating weight)
2013 Industry: 121k units
Largest markets: China, North America, Brazil
Applications: building const., road building, agriculture, waste mgmt
CNH Industrial product range: from 123 to 335 hp
2013 Industry: 25k units
Largest markets: North America, China
Applications: rental, building construction, utilities & civil engineering
CNH Industrial product range: from 74 to 214 hp
2013 Industry: 14k units
Largest markets: Brazil, North America
Applications: road building, building const. , municipalities & AG (Brazil)
CNH Industrial product range: from 129 to 219 hp
Source: Industry 2013 AEM actuals
Construction Equipment May 8, 2014 56
|
Manufacturing Footprint
CNH Industrial Construction Equipment
Fargo, ND
NAFTA Wheel loaders EMEA Berlin
Graders APAC
Calhoun, GA
Crawler excavators,
dozers
Burlington, IA
Tractor loader
Tracy
backhoes, tractor
Components
loaders, forklifts
Wichita, KS San Mauro AME
Crawler excavators, mini APAC NAFTA
Skid-steer, compact AME
excavators, wheel
track loaders excavators APAC
Queretaro (JV)
Pithampur
Components
Lecce Tractor loader
Tractor loader backhoes,
Belo Horizonte
backhoes, compactors
Crawler excavators, tractor
telehandlers, Chiba (Sumitomo OEM)
loader backhoes, dozers,
wheel loaders Crawler excavators
graders, wheel loaders
LATAM
Main Sourcing
Flow
Construction Equipment May 8, 2014 57
|
CNH Industrial CE Competitive Position
2013
EMEA
Leading position in Africa & Middle
NAFTA East in TLB and SSL
Top 10 position in light and heavy
Leading position in TLB
Top 5 position in SSL
Top 5 position in heavy
APAC
India: leader in compaction and
#2 in TLB
LATAM In China, CASE is addressing niche
Top 3 in Brazil market for high performance
Leader in TLB and #2 in WL in Brazil applications
Well positioned in the rest of Latin
America
Source: North America & Europe positions from Off-Highway March 2014 report; Brazil, China & India from local associations
Construction Equipment May 8, 2014 58
|
Construction Equipment Industry by Product
2013 2018 Mix Evolution
2013 2018
% Skid-Steer Compact Wheel % Telehandler
Loader Skid-Steer Compact Overall stable product mix
6% Loader
2% Telehandler Loader Wheel Loader 3%
Tractor Loader 5% 4% in value Backhoe 2%
7% Mini Excavator 8%
Mini Excavator Crawler Tractor Loader Crawler Heavy line represents 75%
8% Excavator Backhoe Excavator
8% 42% of total sales: Wheel
Wheel 43%
Wheel
Excavator Loaders and Crawler
Grader Excavator 3%
3% 3% Wheel Loader Excavators are the largest
Wheel Loader Grader 17%
Dozer 19% 4% Dozer segments 7% 7%
China still expected to be largely driven by Heavy equipment
Light line (TLH/MHEX) growing importance in Europe
1% 4% 1% 1% 1% 3% CWL 7% 9% 1% 9% 4%
1% SSL 4%
7% 1% 1%
16% 20% 4% 29%
TLH 7% 18%
8% 4% 23%
13% 1% 3% 5% MHEX 6% 13% 3% 6%
3% GR 12% 5%
TLB 11% 9%
1% DZ 7% WHEX 3% 19% 20% WL 57% 60% 57% 44% 26% 30% CHEX
EUROPE NORTH JAPAN CHINA INDIA REST OF AMERICA WORLD
2018 by Region
Construction Equipment May 8, 2014 59
|
Market Trajectory
Industry by Region & Product Range 2013 2018
Industry by Region Industry by Product Range
CAGR 2013-2018 CAGR 2013-2018
(units 000s) 893 WW +3.5% (units 000s) 869 893 Total +3.5%
869
840 840 804 804 751 766 751 766
430 454 476 Light +3.0% 405 468 382 456 353 358 APAC +5.1% 440 411 416
52 53 53 LATAM +1.2%
50 51 50
170 173 176 176 166 167
EMEA +1.1% 417 Heavy +4.2%
364 384 401 340 350 182 191 201 210 210 210
NAFTA +2.9%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Construction equipment industry expected to grow in the next five years in unit volume
Industry growth driven by APAC and North America
Europe and LATAM anticipated low growth rate AME expected with higher growth rate
Heavy and Light are expected to maintain the same proportion of the total industry over the next five years
Wheel loaders expected to be the highest growth rate product in Heavy range Among Light products, mini and midi excavators expected to maintain a sustained growth rate
Source: 2013 AEM actuals
Construction Equipment
May 8, 2014 60
|
Strategic Initiatives
CNH Industrial Construction Equipment
Initiatives
Brand Re-positioning Excavator Strategy Emerging Markets
Outcome
Two brand positions, distribution networks, target segments and geographical scope:
* Not applicable in LATAM
Full size excavators: new agreement with Sumitomo Heavy Industries
Single partner Single technology
Right to manufacture at designated manufacturing locations
Emerging markets business development
Reinforce product line-up in Latin America Expand line-up in India Strengthen and develop network in APAC
Develop low cost product range for export from established Indian manufacturing sites
Construction Equipment
May 8, 2014 61
|
Brand DNA
Brand Re-positioning
WW Brand Positioning Brand Focus Brand Focus Geography (excl. LATAM) Product Range
APAC North America &
CASE full-liner
Europe
NH focus on Light CASE full-liner
China & India
NH more focused
Only CASE brand on Light
LATAM
CASE & NH full-liner
ContractorsKey Operator) (Owner Small OwnersFleetMediumContractorsLargeAccountsInternational Agriculture / Forestry / Landscaping
Residential Construction
Nonresidential Construction
Rental
Material Handling
Roads / Bridges / Infrastructures
Demolition / Waste Management
Mining / Quarry
3% CWL
4% CTL
5% Midi CHEX NH
6% TLH on
8% SSL More Light 11% TLB Line Focused Liner
17% MHEX
Full
WHEX 1%
Grader 3% 2%
CASE Dozer
WL 16%
CHEX 22%
2013 WW TIV
Source: 2013 AEM actuals
Construction Equipment
May 8, 2014 62
|
Brand DNA
Brand Re-positioning
Focus as full line supplier globally
Emphasis on technology (e.g. SCR technology) and comprehensive service offering (ProCare)
Construction Equipment
North America/Europe
Integration with Agriculture brand distribution Focus on residential and agriculture/landscaping
Brazil
Full liner and expansion of product line
May 8, 2014 63
|
New Agreement with Sumitomo
Excavator Strategy
2011 2012 2013 2014 2015 2016 2017
Termination of Kobelco alliance
OEM agreement with Sumitomo for the CASE brand
New license agreement with Sumitomo
CNH Industrial CE has the right to manufacture excavators using Sumitomo technology in its manufacturing plants in EMEA, LATAM and NAFTA
Right to sell excavators under CNH Industrial brands
Construction Equipment
May 8, 2014 64
|
Construction Equipment
Plan Pillars
1 Re-position Case and New Holland product line-ups in NAFTA and EMEA and reduce capital deployed in the
business
Reduction of research and development expenses
Reduce working capital
2 Utilize New Holland AG network capability in NAFTA and EMEA for New Holland light CE segment
AG and rural markets represent meaningful market TIV
Reduced incremental volume distribution costs
Fully exploit commercial and common systems cost synergies
3 Industrialization of Sumitomo Heavy CHEX in LATAM, EMEA and NAFTA
Increased commercial flexibility for product customization and speed to market
Increase manufacturing footprint activity level in EMEA
Utilization of FPT powertrain components
4 LATAM Significantly widen product line-up with aggressive product plan
5 APAC and AME Leveraging industrial presence in India on R&D, components and
whole goods export potential
Widening product offering for India domestic
Consolidation of SEAP distribution
Construction Equipment
May 8, 2014 65
|
Investor day auburn hills may 8th, 2014
IVECO
Lorenzo Sistino
|
The History of IVECO
Acquisitions and International Expansion
Birth of Iveco Acquisitions Integration
UK
Share 50% Share 100% Italy Spain
1975 1985 1986 1991 1996 1997 1999 2003 2007 2011 2013
Share 50% Share 33%
In LATAM
International expansion
Iveco May 8, 2014 67
|
IVECO
Brand Statement
IVECO
Equipped with best in class powertrain technologies, Iveco
offers the widest commercial vehicle line up across a large
distribution network.
IVECO
May 8, 2014 68
|
IVECO Product History
Light
OM 40 Daily Daily S2000 New Daily
Medium
Z Range Eurocargo New Eurocargo
Heavy
682 Turbostar Eurostar/Tech Stralis Stralis Hi-Way
1975 1978 1984 1991 1992 1999 2003 2008 2012 2014
IVECO
May 8, 2014 69
|
IVECO Line-Up
Light Trucks Medium Trucks Heavy Trucks
ON-ROAD OFF-ROAD
6t 16t
GVW/GCW
Daily (GVW 3.3-7t)
Stralis, 682 Heavy-Off Trakker (GVW/GCW 18-74t) (up to 74t)
Eurocargo (GVW 6-19t)
Extra Heavy-Off ASTRA (up to 400t)
Tector (GVW 9-26t)
LATAM only
IVECO
May 8, 2014 70
|
IVECO with JVs Line-Up
Light Trucks Medium Trucks Heavy Trucks
ON-ROAD OFF-ROAD
6t 16t
GVW/GCW
Daily (GVW 3.3-7t) Stralis, 682
Eurocargo (GVW 6-19t)
Stralis, 682 (GVW/GCW 18-74t)
Heavy-Off Trakker (up to 74t)
S50 (2-2.5t)
Tector (GVW 9-26t)
Extra Heavy-Off ASTRA (up to 400t)
LATAM only
Daily (3.2-5t)
Yuejin Cab-over (3.5-12t)
Kingkan (up to 49t)
Genlyon
(GVW/GCW 18-49t) IVECO
May 8, 2014 71
|
Product Coverage
Semi-forward cabs dominate in Europe and LATAM while Asian cab-overs in APAC and AME
Rear wheel drive vehicles represent 50% of the market in LATAM and Europe Main customer requirements: payload, cargo capacity and maneuverability IVECO: strong image and major player in RWD and cab sub-segments in all regions
Market demand is fragmented in many different configurations and applications Main customer requirements: versatility, ease of body-fitting and mission dedication IVECO: strong image in Europe and growing in LATAM
Long haulage large fleets are becoming predominant in mature markets Main customer requirements: TCO, reliability, service and telematics IVECO: leverage on recent fuel consumption and payload product improvements
Volumes mainly concentrated in emerging markets
Main customer requirements: payload and robustness
IVECO: wide range of products manufactured worldwide
Light
Medium
Heavy
Heavy
off-road
IVECO
May 8, 2014 72
|
IVECO Key Elements of Business Plan
PRODUCT IMPROVEMENTS
DAILY EUROCARGO STRALIS NAVECO & SIH
New product with extended Versatility Fuel efficiency, Service, Value offer for
architecture capability Fuel efficiency Quality, Connectivity emerging markets
FUEL EFFICIENCY & ALTERNATIVE FUELS
Successful launch of Euro VI technology Follow-on fuel economy packages Leader and innovator in alternative fuels
BUSINESS SUPPORT
Service Network Used Vehicles
IVECO
May 8, 2014 73
|
IVECO Light Trucks
IVECO
May 8, 2014 74
|
IVECO Light Trucks
New Daily
A complete new range
200 base versions
700 m USD
delivering 8,000
R&D and Plant potential combinations
In the market by June 2014
IVECO
May 8, 2014 75
|
IVECO Light Trucks
Daily a World-Wide Product
DISTRIBUTED IN 110 COUNTRIES SINCE 1978
2,090,000 EUROPE
420,000 APAC
90,000 LATIN AMERICA
2,600,000 PRODUCTION TO DATE
IVECO
May 8, 2014 76
|
IVECO Light Trucks
Three Generations of Daily
1978 1999 2014
First light truck with First light truck with Two frame layouts to independent front Diesel Common Rail optimize both cab and suspension Injection System van
IVECO
May 8, 2014 77
|
IVECO Light Trucks
New Daily extended Van Line Up
Current Model New Daily
Wheelbase H1 H2 H3 Wheelbase H1 H2 H3
(cm) (cm)
3,000 7.3 m3 9.0 m3 3,000 7.3 m3 9.0 m3
3,000L 8.3 m3 10.2 m3 3,520 8.3 m3 10.8 m3
3,300 12.0 m3 13.2 m3 3,520L 12.0 m3 13.4 m3
3,950 15.6 m3 17.2 m3 4,100 16.0 m3 18.0 m3
4,100L 17.5 m3 19.6 m3
New Wheelbases
New Extra size
IVECO
May 8, 2014 78
|
IVECO Light Trucks
New Daily VAN Leading Performance
REFERENCE
INDEX NEW DAILY
COMPETITOR
130 hp
FUEL CONSUMPTION 7.4 7.4
(NEDC cycle l/100 km)
Medium
PAYLOAD 1,318 kg 1,410 kg
range VAN
Rear Loading
ERGONOMY 675 mm 675 mm
bay height
SAE quality
RIDE & HANDLING 8.52 8.75
index
MANOEUVRABILITY Turning circle 13.6 m 11.9 m
ENGINE POWER Max power 190 hp 205 hp
LOADING WEIGHT Max GVW 5 t 7 t
LOADING VOLUME Max VAN capacity 17 m3 19.6 m3
BEST VEHICLE AVAILABLE ON THE MARKET
IVECO
May 8, 2014 79
|
IVECO Product Plan
Light Trucks
2014 2015 2016 2017 2018
New Daily
EMEA
Daily
LATAM
New Daily
APAC
Exported
from EMEA
Daily
EXPORTED
FROM JVs Cab-Over
Portfolio extension Product improvement New model
IVECO May 8, 2014 80
|
IVECO Light Trucks
Iveco and Fiat Professional Market Coverage (3.5 6t)
Total 3.5-6 t Europe Market Share 2013
368 k units on total 3.5-6t segment
Camper 50 ku Fiat Pro Fiat and Iveco 27.0%
75% Share
Fiat 15.7%
Front
wheel 135 ku
drive
Fiat Pro Iveco 11.3%
15% Share
Rear 173 ku
wheel
drive
Iveco
Cab-over 10 ku 24% Share
IVECO May 8, 2014 81
|
IVECO Medium Trucks
IVECO
May 8, 2014 82
|
IVECO Medium Trucks
Key Attributes
Extended portfolio up to 26 ton GVW
11,000 Product configurations
Best payload Easy body-fitting
Co-leader in Europe
Produced in Europe & LATAM, distributed worldwide
IVECO
May 8, 2014 83
|
IVECO Medium Trucks
Product Technical Highlights
2 ENGINE TYPE Tector 5 (4 cyl.) and Tector 7 (6 cyl.) from 160 to 320 hp
2 HEIGHTS standard or high roof
8 DRIVER CABINS day, sleeper, crew cab
13 TRANSMISSIONS 6 manual, 4 automated, 3 fully automatic
14 GVW VARIANTS from 6 to 26 t
15 WHEELBASE from 2,790 to 6,570 mm
DRIVE 4x2, 4x4 (6x2, 6x4 LATAM only)
IVECO
May 8, 2014 84
|
IVECO Product Plan
Medium Trucks
2014 2015 2016 2017 2018
Eurocargo
EMEA
Tector
LATAM
Eurocargo
APAC
Exported from EMEA Portfolio extension Product improvement New model
May 8, 2014 85
IVECO
|
IVECO Heavy Trucks
May 8, 2014 86
IVECO
|
IVECO Heavy Trucks
Key Attributes
New Stralis Hi-Way Euro VI
Fuel efficiency Payload
Driver assistance devices
Noise reduction
Interiors Look & Feel
20102014: -10% Fuel Consumption Reduction
-7.5%
-2.5%
IVECO
May 8, 2014 87
|
IVECO Heavy Trucks
Hi-eSCR after Treatment Solution
COMPETITORS CHOICE CHOICE
NOX & PM REDUCTION EFFICIENCY
SELECTIVE
EXHAUST GAS
CATALYST
REDUCTION RECIRCULATION
NOX & PM REDUCTION EFFICIENCY
Lower fuel consumption Better payload Lower maintenance
IVECO
May 8, 2014 88
|
IVECO Heavy Trucks
Key Product Development Steps from here
ROADMAP TO FUEL CONSUMPTION AND TCO IMPROVEMENT
PRODUCT UPGRADE NEW MODEL
Fuel economy improvement New electric/ electronic system Vehicle energy management New transmission Predictive GPS based navigation Regulatory compliance
Fuel economy improvement Cab evolution New vehicle front-end Enhanced aerodynamics Advanced connectivity and HMI
IVECO
May 8, 2014 89
|
IVECO Heavy OFF
Key Attributes
Wide product offering Robustness Performance Body-fitting adaptability
Produced and distributed worldwide
IVECO
May 8, 2014 90
|
IVECO ASTRA: Extra Heavy OFF
Key Attributes
Built for extreme off-road missions Basic, durable & robust Overloading capabilities All-wheel drive up to 8x8 Multiple axles and transmissions availability Extra wide-load up to 400t GCW
IVECO
May 8, 2014 91
|
IVECO Product Plan
Heavy Trucks
2014 2015 2016 2017 2018
Stralis Trakker
EMEA
Stralis Trakker
LATAM
APAC Stralis Trakker
Exported
from EMEA
682
EXPORTED
FROM JVs
Portfolio extension Product improvement New model
IVECO May 8, 2014 92
|
IVECO Service
Striving for Excellence
Leverage on current IVECO strengths
Service
Assistance Parts Network Non Stop 24/7 availability capillarity
Calls answered in 20 seconds
The largest assistance network in Europe
Leverage on Group synergies
to improve in After Sales & Service
IVECO May 8, 2014 93
|
IVECO Network
Regional Development
Points of sale
Points of service
EMEA LATAM APAC
EU 797
2,118
208 121
215 225
AME 148
167
EUROPE LATAM APAC
Leverage the best capillarity Reinforce industry leading Leverage on synergy
for service Argentinian heavy truck market opportunities with CNH
Increase Daily sales points position Industrial
AFRICA & MIDDLE EAST Reinforce heavy truck dealer Network capillarity in Russia
network in Brazil and Turkey
Improve network coverage
and repair capacity Increase network coverage in Develop network for CBU in
the rest of Latin America synergy with JVs in China
IVECO May 8, 2014 94
|
IVECO Action Plan
Regional Roadmap
EMEA LATAM APAC
EUROPE BRAZIL APAC
Target Northern and Central EU Improve presence in large fleets Increase penetration in off-road
Markets leveraging Group synergies premium segments mainly in South
Focus on service, TCO, and residual ARGENTINA East Asia
value to increase presence in fleets Leverage on local manufacturing Develop new business
Improve residual value and used presence opportunities through local
vehicle business partnerships
REST OF LATIN AMERICA
AFRICA & MIDDLE EAST Leverage JVs line-up to target value
Improve presence in Chile, Colombia
New JV in South Africa for and Peru segments across the region
distribution in RHD markets
JVs product offer to increase share
in value segment
IVECO May 8, 2014 95
|
TIV Assumptions Incorporated in 5 Year Plan
(Trucks 3.5t)
EMEA
Light Trucks
Medium Trucks CAGR +4.2% Heavy Trucks
1,095
APAC
891
375
CAGR +1.9%
317
LATAM 145
116 4,420 4,028 CAGR +2.4% 458 575
1,155 969
255 2013 2018 459 500
226
135 124
66 2,600 2,765 56
46 54
2013 2018
Note: Light 3.5-6t; Medium 6-16t; Heavy >16t 2013 2018 LATAM figures refer to Brazil, Argentina and Venezuela only APAC figures exclude India
IVECO May 8, 2014 96
|
IVECO
May 8, 2014 97
|
Investor day auburn hills may 8th, 2014
Iveco Bus
Pierre Lahutte
|
Iveco Bus
Deeply Rooted European Business
Birth of Iveco Acquisitions Joint-Venture Re-Branding
50% Iveco
100% Iveco 50% Renault 1975
1991 1996 1998 1999 2003 2013
IVECO BUS May 8, 2014 99
|
Public Transport Scenario
Bus Business Drivers
Urbanization Mobility Congestion Health Funding Liberalization
Bus is the Cheapest and Quickest Solution to address a growing Public Transport Need
Total Cost of Ownership: Fuel Economy and Passenger Capacity Sustainability: Diesel replacement by Gas / Hybrid / Electric / Plug-in Attractiveness: Style, Comfort, Accessibility and Infotainment
Iveco Bus
May 8, 2014 100
|
CNH INDUSTRIAL
START 2014-2018
Iveco Bus
Value Proposition
Unique Hi-eSCR Technology, best Euro VI packaging for bus
Very competitive Total Cost of Ownership with fuel economy advantage Leader in Gas and Hybrid powertrains to reduce noise and emissions High Value proposition due to an attractive and distinctive styling
Minibus
Citybus
Intercity
Coach
A Full Range for Sustainable Public Transport
Iveco Bus
May 8, 2014
101
|
CNH INDUSTRIAL
START 2014-2018
Iveco Bus
European Industry, Iveco Line-up and Segment Position
Citybus
Industry: 11,400u
Intercity
Industry: 6,700u
Coach
Industry: 5,700u
Minibus
Industry: 10,400u
HEULIEZ BUS
GX
IVECO BUS
Urbanway
Crossway
Magelys
Daily
Crossway Low Entry
EU Market Position
2 1 7 3
Iveco Bus
May 8, 2014
102
|
CNH INDUSTRIAL
START 2014-2018
Iveco Bus
Recovering to Pre-Crisis Market high in Citybus and Intercity
Total Industry Volume
(000s)
38 35 33 33 34 32 34 34 36 36
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Segment
Projected TIV Growth by Segment (12-18)
Strategy
Citybus
Intercity
Coach
Minibus
15%
15%
flat
10%
New Euro 6 vehicle and Gas & Hybrid leadership
New Euro 6 vehicle and crossway segment leadership
Opportunistic approach on Line / Tourism sub-segment
New Euro 6 Daily vehicle 23 Seat factory version
Iveco Bus
May 8, 2014
103
|
CNH INDUSTRIAL
START 2014-2018
Citybus
Urbanway
Iveco Bus
May 8, 2014
104
|
CNH INDUSTRIAL
START 2014-2018
Citybus
Leading Powertrain Transition
Major municipalities banning new diesel Citybus purchases Natural gas segment developing in Eastern Europe Hybrid segment developing in Western Europe Electric segment in testing across Europe
Electric
Hybrid
Natural Gas
Diesel
2013 2018 2025
Diesel: 10,000u
14% 86%
Natural Gas: 800u
63% 37%
Hybrid: 250u (*)
50% 50%
CNH Industrial
Others
(*) Continental Europe
May 8, 2014
Iveco Bus
105
|
CNH INDUSTRIAL
START 2014-2018
Citybus
Hybrid Technology
Hybrid Technology
Technology Value Cost
Hybrid Series with Batteries ++ +
Hybrid Series with Supercaps + +
Gearbox Parallel Hybrid with Batteries - ++
Iveco solution
37% CO2 Emission Reductions
Diesel 1426 g/km
Hybrid 963 g/km
Emissions per km
Roller bench test in urban mission
UTAC
Labs & test tracks
Best Hybrid Technology for Citybus
«After an intensive series of tests carried out by Graz Techn. Univ., the leading hybrid bus system is Serial Hybrid with batteries. »
Fuel Economy 18m
Diesel Euro V
Hybrid Euro V
-35%
Hybrid Euro VI
-40%
CO2: - 40 tons/year
Noise: -7 db, Silent at Bus Stops
Iveco Bus
May 8, 2014
106
|
CNH INDUSTRIAL
START 2014-2018
Citybus
Urbanway, the All New Citybus
EFFICIENCY
-800Kg, +10% PASSENGERS
-10% FUEL CONSUMPTION
DRIVERS AREA
«EBSF» ERGONOMICS
COMFORT
«LOUNGE IN THE CITY» WITH NEW CLIMATE CONTROL AND SEAT LAYOUT
DESIGN
NEW STYLE, SMART MAINTENANCE AND BRT OPTIONS
EBSF: European Bus Standard of the Future
Iveco Bus
May 8, 2014
107
|
CNH INDUSTRIAL
START 2014-2018
Citybus
Crealis Version of Urbanway, Leader in «Bus Rapid Transit»
Attractive and Competitive Alternative to Tramway / Light Rail
Iveco Bus
May 8, 2014
108
|
CNH INDUSTRIAL
START 2014-2018
Citybus
Heuliez Bus
Premium brand in the Citybus market
Innovative brand: 1st articulated, 1st Gas, 1st Hybrid
Relevant Electrical Trolleybus knowhow
HB HEULIEZBUS
Iveco Bus
May 8, 2014
109
|
CNH INDUSTRIAL
START 2014-2018
Intercity
Crossway
Iveco Bus
May 8, 2014
110
|
CNH INDUSTRIAL
START 2014-2018
Intercity
Crossway, the Customers Money Maker
PRODUCTIVITY
BEST IN CLASS TOTAL COST OF OWNERSHIP
VERSATILITY
THREE LENGTHS (10.8M - 12M - 13M) ONLY 63 SEAT INTERCITY WITHIN 13M
DESIGN
MODERN STYLE EASY MAINTENANCE
FUEL ECONOMY
LOW CO2 EMISSIONS
Iveco Bus
May 8, 2014
111
|
CNH INDUSTRIAL
START 2014-2018
Iveco Bus
Low Entry
Crossway Low Entry
May 8, 2014
112
|
CNH INDUSTRIAL
START 2014-2018
Low Entry
Crossway Low Entry, the Universal Bus
TCO of an Intercity and Functionality of a Citybus
CROSSWAY INTERCITY
POWERTRAIN / SITTING
URBANWAY CITYBUS
STANDING / ACCESSIBILITY
Best Design for growing Suburban Missions
Iveco Bus
May 8, 2014
113
|
CNH INDUSTRIAL
START 2014-2018
Coach
Magelys
Iveco Bus
May 8, 2014
114
|
CNH INDUSTRIAL
START 2014-2018
Coach
The High Value Coach
EFFICIENCY
HI-eSCR SMART DRIVELINE
SAFETY
ADVANCED ACTIVE AND PASSIVE SAFETY DEVICES: LANE DEPARTURE WARNING SYSTEM & ADAPTIVE CRUISE CONTROL
HIGH COMFORT
NEW HVAC SYSTEM TAILORED SOLUTIONS
DESIGN
NEW LIGHTING WITH LED INTEGRATION
Iveco Bus
May 8, 2014
115
|
CNH INDUSTRIAL
START 2014-2018
Minibus
New Daily
Iveco Bus
May 8, 2014
116
|
CNH INDUSTRIAL
START 2014-2018
Minibus
Game Changer Derived from 19.6m3 New Daily
PRODUCTIVITY
BEST IN CLASS PASSENGER CAPACITY AND FUEL ECONOMY
DESIGN
NEW STYLE AND DASHBOARD
DRIVERS AREA
IMPROVED ERGONOMICS AND DRIVING COMFORT
ACCESSIBILITY
NEW PASSENGER DOOR AND INTERIORS
Iveco Bus
May 8, 2014
117
|
CNH INDUSTRIAL
START 2014-2018
Iveco Bus
Ready to go, Ready to grow!
Iveco Bus
May 8, 2014
118
|
CNH INDUSTRIAL
START 2014-2018
INVESTOR DAY
AUBURN HILLS MAY 8TH 2014
Specialty Vehicles
Alessandro Nasi
|
CNH INDUSTRIAL
START 2014-2018
Specialty Vehicles Businesses at a Glance
IVECO
Specialty Vehicles
Defence
IVECO DEFENCE VEHICLES
Leading global player with complete product portfolio of multi-function, high mobility vehicles in the Armored, Multirole and Truck ranges
Unique vertical integration, from engines and drivelines, to complete protected hulls
Fire Fighting
MAGIRUS
Full-liner, global player in fire fighting applications
Global leader in Turntable Ladders
Major player in Tank Pumpers, Rescue Vehicles, Multi-purpose and Aircrash Rescue Vehicles
Specialty Vehicles
May 8, 2014
120
|
CNH INDUSTRIAL
START 2014-2018
Defence Vehicles
IVECO DEFENCE VEHICLES
Specialty Vehicles
May 8, 2014
121
|
CNH INDUSTRIAL
START 2014-2018
Defence Vehicles Product History
1912 1975 1980 1985 1988 1994 2000 2004 2008 2010 2011 2012 2014
Company founded
Company merged into IVECO
Ariete and Dardo Tracked Vehicles
Centauro 8x8 Wheeled Vehicle
Puma 4x4, 6x6 Wheeled Vehicle
VM 90 Light Reconnaissance Vehicle
ACM 90 4x4
Astra SMR 4x4, 6x6, 8x8
ACTL 4x4
Protected Cabin Trakker and Astra
Light Multirole Vehicle
VBM 8x8 Wheeled Vehicle
VBTP 6x6 Amphibious Vehicle
10x8 Logistic Trakker
VBA/MPC 8x8 Amphibious Vehicle
Medium Multirole Vehicle
Armored
Multirole
Trucks
Specialty Vehicles
May 8, 2014
122
|
CNH INDUSTRIAL
START 2014-2018
Business Overview
Core Business
Leader in mobility and protection for land military applications
Uniquely wide product portfolio:
Armored wheeled 6x6 and 8x8 vehicles in different special applications, also in amphibious versions
Light and medium Multirole armored vehicles
Light, medium and heavy logistic and tactical Trucks with or without armored cabins
Key Business Features
High technology and customization-driven market
Systems integration capabilities
Lead time to delivery up to several years long, based on product complexity
Business influenced by geopolitical situation and political decisions over military spending
Traditional markets characterized by shrinking defence budgets
Emerging markets growing, but mainly price-driven and based on standard technologies
Specialty Vehicles
May 8, 2014
123
|
CNH INDUSTRIAL
START 2014-2018
Competitors Outlook Net Sales 2013
Military Vehicles
2013 Net Sales in USD mn (Land military vehicles, only)
Europe-based Companies
WBAM
WBAM
AMT
WBAM
WBAM
WBA
AMT
WA
BAMT
W Weapons (excluded from sales in graph) B Main Battle Tanks A Armored M Multirole T Trucks
(Source: internal market intelligence)
IVECO DEFENCE VEHICLES
Key Facts
IVECO Defence Vehicles is not present in the weapons and main battle tanks segment
IVECO DV holds third position among European-based land vehicles
Fully-integrated from engines and drivelines to protected hulls
Only European truck manufacturer with a dedicated military vehicles unit
While historically EU-centred, IVECO Defence Vehicles has broadened its geographical scope
Specialty Vehicles
May 8, 2014
124
|
CNH INDUSTRIAL
START 2014-2018
Production Footprint & Commercial Organization
IVECO Defence Vehicles employs >1,000 employees worldwide, located in:
Production facilities in Italy (Bolzano, Vittorio Veneto, Piacenza) and Brazil (Sete Lagoas) Commercial offices throughout Europe and Latin America
Brazil, Sete Lagoas
Defence Vehicles
Commercial Offices Italy, Bolzano Spain, Madrid Norway, Oslo Belgium, Brussels Germany, Ulm France, Paris - Trappes UK, London - Watford Brazil, Belo Horizonte (IVECO)
Plants
Commercial offices
Italy, Piacenza
Astra Defence
Italy, Bolzano
Defence Vehicles
Italy, Vitt.Veneto
Defence Vehicles
Specialty Vehicles
May 8, 2014
125
|
START 2014-2018
Product Portfolio
Armored
Multi-function vehicles with ballistic steel hull and add-on protection
Multirole
High mobility protected tactical carriers for reconnaissance missions and combat support
Tactical & Logistics Trucks
Wide range of on-and off-road standard to high performance, protected and unprotected vehicles
Specialty Vehicles
May 8, 2014
126
|
CNH INDUSTRIAL
START 2014-2018
Product Range Major Developments
Armored Vehicles
Multirole Vehicles
Trucks
Key Product Features
Unique, innovative H-type driveline:
Mobility Protection
Flexible design:
Major developments in both land and amphibious versions
Unique product design (Light Multirole Vehicles):
Operational versatility
Mobility and maneuverability A common-base platform (Medium Multirole Vehicles):
Maintainability, logistics
Ad-hoc mission variants
Utilization of commercial vehicles existing platforms
Wide product range
Extensive international presence
Diverse applications:
Tactical Vehicles
Logistic Vehicles
Further strengthen Brazilian position New technologically advanced engine introduction
Expand geographical presence, implementing local requirements
Light Multirole Vehicles:
Commercial opportunities in both Europe and LATAM
Specific customizations for exports
Medium Multirole Vehicles:
Development of versions with advanced technologies integration
Exploit leading position in tactical vehicles to target growth in selected international markets
Extend commercial presence in key APAC and AME markets
Implement customized variants to meet export requirements
Specialty Vehicles
May 8, 2014
127
|
CNH INDUSTRIAL
START 2014-2018
Focus on VBTP Brazil
Long term contract signed with the Brazilian Army in 2009 Contract for 10 different versions Localized industrial organization established in 2012 with R&D, manufacturing and customer service competencies
VBTE AMB-MR
VBE PC-MR
Specialty Vehicles
May 8, 2014
128
|
CNH INDUSTRIAL
START 2014-2018
Key Areas of Development
Commercial and Geographical Development
The Companys contracted portfolio is over USD 4bn at May 2014
Strengthening of position in European markets
Development of commercial and industrial leadership in LATAM
Focus on development in APAC and AME also through establishment of direct commercial presence
Product Development and Technological Innovation
Continued investment in R&D (following past 10 years upward trend, reaching 8% of net sales in 2013) Enhance product offer in all ranges to address changing market demand
Introduction of new technological features
Expansion from vehicles to platforms, with growing level of sub-systems integration
CNH Industrial Integration
Technology and engineering synergies: IVECO for trucks, FPT for engines and transmissions, CNH for pneumatic and telematics systems
Commercial synergies leveraging on CNH Industrials global network
Specialty Vehicles
May 8, 2014
129
|
CNH INDUSTRIAL
START 2014-2018
Concluding Remarks
IVECO Defence Vehicles Benefits from:
Top player position in Europe and developing market leadership in Brazil Wide international customer base Recognized leadership in technology for protection and mobility
High flexibility to adapt to customer needs and respond to local content requirements
Integration with CNH Industrials technological, industrial, and commercial capabilities
Growth in the coming years will be supported by:
Expansion of business beyond traditional markets
Extension of product portfolio to meet evolving customer requirements New technological applications to develop system-integrator capabilities
Specialty Vehicles
May 8, 2014
130
|
CNH INDUSTRIAL
START 2014-2018
Fire Fighting Vehicles
MAGIRUS
Specialty Vehicles
May 8, 2014
131
|
CNH INDUSTRIAL
START 2014-2018
Magirus Product History
1864 1872 1903 1931 1951 1975 1985 1988 1994 2000 2010 2011 2012 2013
Company founded First fire pumps
Aerials
Ulmer ladder
Vehicles
First self-driven steam fire pump
First steel ladder set for turntable ladders
Worlds highest turntable ladder (52 m)
for
Company acquired by IVECO
First computer controlled turn table ladder
Articulated turntable ladder
Computer stabilized turntable ladder
Single Extension Technology
& 60m ladder
World´s highest articulated ladder (42 m.)
Air Crash Rescue
First air crash vehicles
AluFire- first aluminium composition
New Dragon (Airport rescue)
New Super Impact 6x6 (2,8m wheel track)
Specialty Vehicles
May 8, 2014
132
|
CNH INDUSTRIAL
START 2014-2018
Business Overview
Core Business
Magirus is a fully integrated fire fighting body builder
The superstructure (not truck dependant) accounts for >70% of the overall value
Design & Development Integration & Assembly Full Testing
Chassis Manufacturer
Key Business Features
Tender-driven and highly fragmented market Customers are almost exclusively public entities Direct sales to customer Lead time between tender quotation and delivery 12/15 months (average) Premium markets mainly driven by quality standards and technology
Traditional markets subject to public spending reduction
Expected consistent growth of public investment in fast-growing markets mainly due to changing legislations and higher safety awareness
Specialty Vehicles
May 8, 2014
133
|
CNH INDUSTRIAL
START 2014-2018
Footprint
Product Mgmt.
Marketing
Customer Service
Mfg.
Purchasing
R&D
New Magirus Excellence Centre
Fully Integrated site, all-in-one location
Lead time
Customization
Quality
Efficiency
Customer Satisfaction
> 1,000 Employees
Germany, Ulm
New Magirus Excellence
Centre
France, Chambery
Customization and Service Center
Italy, Brescia
Aircrash Rescue Competence Centre
Austria, Kainbach
Special Applications
Specialty Vehicles
May 8, 2014
134
|
CNH INDUSTRIAL
START 2014-2018
Competitive Landscape
2013 Net Sales in USD mn
TIV Distribution by Players
> 15,000 units worldwide
Global presence, leader in aircrash
Mainly focused on NAFTA and aircrash rescue vehicles
(Source: internal market intelligence)
35%
65%
Mainly focused on Europe and Africa
4 major global players
Full liners
Premium technology
>100 local-based players
Standard technology
Main focus on tank pumpers and rescue vehicles
Target on local customer needs
Specialty Vehicles
May 8, 2014
135
|
CNH INDUSTRIAL
START 2014-2018
Product Portfolio
Aerials (Ladders, Platforms)
Automated and semi-automated turntable ladders and Telescopic platforms
Vehicles
Full range Fire Fighting vehicles for standard and special applications
Aircrash
Full range vehicles from 4X4 to 8X8 for airport aircrash rescue
Specialty Vehicles
May 8, 2014
136
|
CNH INDUSTRIAL
START 2014-2018
Product Range - Major Developments
Aerial Range
Vehicles Range
Aircrash Rescue Range
Distinctive
Features
World leader in Premium Turntable Ladders with full range offer
Highest Standard and Articulated Ladders worldwide (60m, 42m) Computer stabilization system Out rigger stabilizing system
Complete line-up
Global commercial presence High versatility of applications:
wide range of tank/ pump sizes
rescue/logistic customizations
Impact/Super Impact range:
Standard commercial chassis Outstanding acceleration capability Integration with CNH Industrial Engineering, in-house chassis
Dragon:
Developed to respond to the highest level requirements
Key Growth Activities
Increase presence in industrial applications (e.g. Chemicals, Oil & Gas) Extend customer base to platform segments, leveraging ladders improved performance
Increase presence in industrial applications
Establish local presence and operations in emerging markets:
Local body builders
Ad-hoc customizations
Increase presence and operations in fast-growing markets Full-service packages
Specialty Vehicles
May 8, 2014
137
|
CNH INDUSTRIAL
START 2014-2018
Key Areas of Development
Geographic Consolidation and Expansion
Strengthen leadership in Europes premium markets
Develop local presence in China and leverage on existing CNH Industrial network to enter other APAC markets Establish brand value in LATAM with premium imports and future industrialization
Product Development and Technological Innovation
Complete product portfolio renewal by 2016; 5 new product launches in 2014 Leverage the new Magirus Excellence Center capabilities Leverage CNH Industrial engineering to develop new special applications
Global Customer Approach
Leverage CNH Industrials global network to increase worldwide service capabilities Develop new software architecture to support global technical service and spare parts delivery Intensify demo activities through new Magirus Experience Center
Specialty Vehicles
May 8, 2014
138
|
CNH INDUSTRIAL
START 2014-2018
Conclusive Remarks
Magirus benefits from:
150 years of tradition, strong brand recognition with continuous technological innovation All-in-one integrated manufacturer (superstructure, chassis, driveline) Leading market position in Fire Ladders Fully integrated development and manufacturing at New Magirus Excellence Centre CNH Industrial integration opportunities (engineering, suppliers, distribution)
Growth in the coming years will be supported by:
Continued expansion of business beyond traditional markets
Extension of product portfolio to meet evolving customer requirements
Specialty Vehicles
May 8, 2014
139
|
CNH INDUSTRIAL
START 2014-2018
INVESTOR DAY
AUBURN HILLS
MAY 8TH, 2014
FPT Industrial
Giovanni Bartoli
|
CNH INDUSTRIAL
START 2014-2018
FPT Industrial
LIGHT ENGINES
R22
F1
F5
MEDIUM ENGINES
NEF
SERIES
8000
HEAVY ENGINES
CURSOR
VECTOR
TRANSMISSIONS AND AXLES
MANUAL
TRANSMISSIONS
FRONT & REAR
AXLES
ON ROAD
OFF ROAD
MARINE
ENERGY SOLUTIONS
Specialty Vehicles
May 8, 2014
141
|
CNH INDUSTRIAL
START 2014-2018
FPT Industrial DNA
Recognized leader in engine and after treatment solutions
Contribution to the development and first to introduce Common Rail
First to introduce turbocharging technology on diesel engines
First to introduce maintenance free emission reduction system without
Exhaust Gas Recirculation (EGR) and Diesel Particulate Filter (DPF) for Tier 4B
Strategy based on the development of technologies that:
Improve the final customers productivity by increasing performance
Reduce the total cost of ownership by improving efficiency
Maintaining a leadership position:
In fuel consumption
In emission reduction solutions
Specialty Vehicles
May 8, 2014
142
|
CNH INDUSTRIAL
START 2014-2018
FPT Industrials Global Operations
10 PLANTS
6 R&D CENTERS
93 DEALERS AND 899 SERVICE POINTS
EMPLOYING 8,400 PEOPLE OF WHICH
800 ENGINEERS
EUROPE
Dealers: 29 Service points: 460
NAFTA
Dealers: 11
Service points: 276
LATAM
Dealers: 8 Service points: 9
AFME
Dealers: 21 Service points: 42
APAC
Dealers: 24
Service points: 112
Specialty Vehicles
May 8, 2014
143
|
CNH INDUSTRIAL
START 2014-2018
Emission Regulation Scenario and Outlook
Europe and NAFTA
ON ROAD
EURO I
PM = -98%
NOx = -98%
EURO VI A
Introduction measurement instruments
EURO VI B/C
1990
1996
2014
2015
2016
2019
2025
FURTHER RESTRICTION ON CO2 EMISSIONS
PM = -98%
NOx = -98%
INTRODUCTION OF PARTICULATE NUMBER (PN) LIMITS (DPF ADOPTION)
FURTHER RESTRICTION ON CO2 EMISSIONS
EXPECTED TIER 5
OFF ROAD
TIER 4B
TIER 1
Specialty Vehicles
May 8, 2014
144
|
CNH INDUSTRIAL
START 2014-2018
2018 Worldwide Engine Market Scenario
Emissions Legislation Evolution
Volumes
(mln units)
£ Tier 3 & £ EURO III EPA 04
= Tier 4A & = EURO IV/V EPA 07
= Tier 4B & = EURO VI EPA 10
11.5
80%
20%
2009
12.5 40% 40%
20% 2013
15.4 15%
47% 38% 2018
Note: Volumes include on-road, off-road, power generation and marine engines from 2 L to 20 L
Specialty Vehicles
May 8, 2014
145
|
CNH INDUSTRIAL
START 2014-2018
INVESTOR DAY
AUBURN HILLS
MAY 8TH, 2014
FPT Industrial
Innovation & New Technologies
Massimo Siracusa
|
CNH INDUSTRIAL
START 2014-2018
Targeting Best in Class Powertrain Efficiency
Maintaining Technological Leadership on:
Engine air handling, combustion and thermal management
Engine & Driveline mechanical efficiency
After treatment system performances & packaging
Alternative fuels
Introducing new Energy Saving Devices:
Smart auxiliaries
Heat recovery
Hybrids and electrification
Managing all Key Systems to operate at Higher Efficiency:
Model based control
Energy management approach
Specialty Vehicles
May 8, 2014
147
|
CNH INDUSTRIAL
START 2014-2018
Maintaining Technological Leadership
Engine
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
BENEFITS
Efficiency: increasing from best in class 46% to above 50%
Engine emissions: lowering CO2 emissions by 8%
Performance: +10% for same displacement
AIR HANDLING
Advanced turbocharger concepts with ball bearings and improved aerodynamics
MECHANICAL EFFICIENCY
Advanced low friction coatings and superfinishing
Specialty Vehicles
May 8, 2014
148
|
CNH INDUSTRIAL
START 2014-2018
Maintaining Technological Leadership
After Treatment
HI-eSCR
New generation of High Efficiency Selective Catalytic Reduction (HI-eSCR) with:
Diesel Particulate Filter (DPF) integrated on SCR
Innovative mixed oxides washcoat
Enhanced Model based control
BENEFITS
Emission solution: Fulfill future StageV emission requirement (PN reduction) Packaging: Integration of DPF in current Tier 4B after treatment layout avoiding significant investments for vehicle installation
Specialty Vehicles
May 8, 2014
149
|
CNH INDUSTRIAL
START 2014-2018
Maintaining Technology Leadership
Alternative Fuels: Compressed and Liquid Natural Gas (CNG/LNG)
NEW ENGINE ARCHITECTURE
Cylinder head with low swirl inlet port and high resistance material
COMBUSTION
New stoichiometric combustion concept with Exhaust Gas Recirculation (EGR) for low fuel consumption
BENEFITS
Fuel efficiency: with CNG/LNG improving up to 6%
Performances: Cursor 9 diesel based engine with max power up to 415 Hp
Application: Cursor 9 for Truck & Bus and NEF 6 for AG/CE
INJECTION SYSTEM
Low pressure direct injection system for low fuel consumption
AIR HANDLING
Advanced air handling allowing for improved gas exchange while coping with high temperatures
Specialty Vehicles
May 8, 2014
150
|
Introducing New Energy Saving Devices
Waste Heat Recovery and Smart Auxiliaries
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
ENERGY RECOVERY
Mechanical waste heat
recovery through power
turbine linked to crankshaft or
electrified
Specialty Vehicles May 8, 2014 1
Fuel efficiency: improving up to 5%
BENEFITS Applications: Truck & Bus , AG/CE
|
Operating at Best System Efficiency
Energy Management Approach
ENERGY MANAGEMENT PLATFORM
New platform to design and develop components, controls and calibration strategies to optimize overall
efficiency managing them as integrated system
ATS
Engine
Cooling
PTO
Auxiliaries
Gearboxes
MODEL BASED CONTROL
Management of all key systems and components
using dedicated and predictive models instead of maps
Specialty Vehicles May 8, 2014 2
Time to market: Reduction thanks to virtual system design & validation
Fuel efficiency : improvement up to 10% as results of higher efficiency of powertrain
and vehicle systems during operation
BENEFITS
|
Operating at Best System Efficiency
Commercial Vehicle in Multi Drop /City Cycle Mission
MISSION OPTIMIZED
ENERGY MANAGEMENT
Combining energy management with
hybrid optimize supply and
Micro Hybrid
devices to demand energy balance
Hybrid Transfer
Box
Batteries
Cooling Engine ATS Gearbox
Specialty Vehicles May 8, 2014 3
Fuel efficiency : Improvement up to 30% in a multi?drop mission
BENEFITS Emissions: Technology allows to create low/zero local environmental impact vehicles
|
INVESTOR DAY
AUBURN HILLS
MAY 8TH, 2014
Parts & Service
Dino Maggioni INVESTOR DAY AUBURN HILLS MAY 8TH 2014
|
Business Overview Our Mission
Parts & Service
Provide our Commercial Brands and their respective Dealer Networks with the
Support Required to position Parts & Service as a Competitive Advantage.
Maximize parts availability so that sourcing parts from our dealers is convenient and reliable
Supply service, parts and accessories that support the entire machine life cycle
Enhance the dealer network capabilities to drive incremental service opportunities,
increasing the end?user satisfaction with optimal machine performance
Parts & Service May 8, 2014 5
Provide a strong foundation for dealer financial security and brand equity
|
Business Overview Primary Objectives
Parts & Service
Support brand machine sales and market share growth
Enhance dealer retail Parts & Service sales effectiveness
$ Minimize machine Downtime and Total Cost of Ownership
Parts & Service May 8, 2014 6
|
Business Overview Depot Footprint Parts & Service
Worldwide
CURRENT TARGET 57 parts depots* 61 parts depots* NAFTA
Parts Depots* Depot Sq. Meters (000) 11 450 EMEA Parts Depots* Depot Sq. Meters (000) 20 600 36 million lines shipped per year
50 million lines shipped per year
3.5 million serviceable 4.0+ million serviceable
LATAM APAC
machine population machine population Parts Depots
Depot Sq. Meters (000) 5 85 Parts Depots*
Depot Sq. Meters (000) 21 100
Current depot footprint has the capacity to:
ship 150,000+ lines per day
ensure quick deliveries to the dealers
minimize logistics costs Changes to the depot footprint and stock
localization are considered for:
market expansion
harmonization with the population
Parts & Service May 8, 2014 7
and working capital
machine seasonal service needs
* |
|
Including JVs |
|
Machine Life Cycle Service and Parts Penetration
Parts & Service
% CNH Industrial Parts
Penetration Trend $/machine
Genuine Parts
Consumption Trend
WARRANTY MAINTENANCE REPAIR OVERHAUL FIX AS FAIL
First Owner Second Owner Back up machine
Dedicated parts and service offerings for each customer segment and tailored to the vehicles mission
Original Vehicle Life Cycle
Parts & Service May 8, 2014 8
owner vs. subsequent owner
Owners of individual machines vs. large fleets
Growth potential along the entire Machine Life Cycle
|
Key Drivers to Support the Brands
Parts & Service
Partnering with an empowered dealer network measured by
Over?the?counter parts availability
01 Service Excellence CURRENT TARGET
+10 %
Parts availability and delivery measured by Fill Rate
02 Customer Loyalty
+2 %
Measured by CNH Industrial Parts Penetration
Machine Uptime and Total Cost of Ownership
Wider parts, services, and attachments
+10 %
offering of accessories, Productivity improvements
03 Synergies in Fixed Infrastructure and Systems at CNH Industrial
Three largely
independent
One
integrated
Parts & Service May 8, 2014 9
Leverage growth opportunities in emerging markets
(LATAM, AME, APAC, etc.)
depot
networks
depot
network
|
Parts Availability and Delivery
Parts & Service
SUPPLIER SUPPLIER SUPPLIER SUPPLIER SUPPLIER
01 Service Excellence: CURRENT logistic flows
MASTER DEPOT
FACING FACING FACING
DEALER
DEPOT
DEALER
DEPOT
DEPOT DEPOT DEPOT
DEALER
DEPOT
DEALER
DEPOT
DEALER
DEPOT
DEALER
DEPOT
Parts & Service May 8, 2014 10
CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER
|
Parts Availability and Delivery
Parts & Service
Global inventory
management ?
efficient inventory
Investments in
infrastructure and
systems to improve
01 Service Excellence: TARGET logistic flows and change drivers
SUPPLIER SUPPLIER SUPPLIER SUPPLIER SUPPLIER
levels in each region
with adequate safety
stock and critical
parts managed
worldwide.
customer
responsiveness.
Special Processing
Center (SPC)
MASTER DEPOT + SPC
FACING
DEPOT
FACING
DEPOT
FACING
DEPOT
DEALER
DEPOT
DEALER
DEPOT
CUSTOMER
DEALER
DEPOT
DEALER
DEPOT
DEALER
DEPOT
DEALER
DEPOT
CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER
Parts & Service May 8, 2014 11
Empower our dealer network with service support tools, integrated parts ordering and retail inventory management systems
Reduced obsolescence and improved service availability
Velocity of inventory
|
Machine Life Cycle Service and Total Cost of Ownership
Parts & Service
02 Customer Loyalty: Dealership becoming one?stop?shop and increased parts penetration
TARGET CNH Industrial Parts
Second Line Parts
%
$/machine
CURRENT CNH Industrial Parts
Penetration Trend
Parts Consumption Trend
+10 pp
Remanufactured Parts
Penetration Trend
Genuine Parts
Bundled Maintenance
WARRANTY MAINTENANCE REPAIR OVERHAUL FIX AS FAIL
First Owner Second Owner Back up machine
Parts & Service May 8, 2014 12
Continuous product and commercial training for the dealer sales force
Customizable marketing, comprehensive electronic catalogue and promotional materials
|
Common Branding for Genuine Parts
Parts & Service
02 Customer Loyalty: Wide parts catalogue
Only one brand for Genuine parts
Reinforces the CNH Industrial brand image
Savings from standardization, packaging and inventory
Parts & Service May 8, 2014 13
|
Remanufactured Parts Capabilities
Parts & Service
02 Customer Loyalty: Expanding breadth of products
CNH Reman LLC joint venture in Springfield, Missouri (50% JV fully
consolidated)
Engines and engine components
Driveline
Hydraulics
Electronics and injectors
Compressors and turbos
Dedicated FPT powertrain remanufacturing
facility in Garchizy, France
Engines and engine components
Gearboxes
Turbos and pumps
Leverage know?how built up in NAFTA and EMEA
Parts & Service May 8, 2014 14
to expand offering in LATAM and APAC
|
Enhancing Service Opportunities
Parts & Service
ProCare for Construction Equipment
Extended warranty coverage
02 Customer Loyalty: Supporting the brand Image with enhanced service
Machine uptime monitoring through telematics solution
Maintenance contracts for Commercial Vehicles
Elements Program allows customers to tailor maintenance schedules
around their needs
Monthly payments give customers peace of mind over maintenance
cost stability
Harvesting season support for Agricultural Equipment
Increasing shipment frequency to dealers during season peaks
Parts & Service May 8, 2014 15
Partnering with dealers to ensure parts are available in dealer
inventory in advance of the season
|
Productivity Improvements
Parts & Service
Optimization of depot footprint across all brands
03 Synergies in Fixed Infrastructure and Systems
Co?location of parts depots allows more depots in closer proximity to the dealers
Reduce Capex requirements by running multiple brands
Continuous focus on improving depot productivity, performance and working capital
Global inventory management
Same Key Performance Indicators (KPIs):
Part fill rates (ability to ship parts when ordered)
Inventory turns
Parts & Service May 8, 2014 16
Overhead rates
|
Leverage Growth Opportunities Parts & Service
Parts and service availability and delivery are an important ingredient to emerging market growth
03 Synergies in Fixed Infrastructure and Systems CURRENT TARGET
Helps establish a strong brand presence
Used as a point of competitive advantage for machine sales
Provides a strong foundation for dealer financial security
Dealer parts availability to end customer: +10 %
Export know?how in growth markets
Distribution and systems knowledge Established capabilities in North
Leverage in
Part definition and catalogs already released LATAM, AME,
Ease of expanding FPTs sales scope by using the existing parts depot
infrastructure
America and
Europe
and APAC
Primarily in Expand into
NAFTA
Parts & Service May 8, 2014 17
EMEA and
LATAM
|
Leverage Growth Opportunities
Parts & Service
01 Service Excellence
02 Customer Loyalty
03 Synergies in Fixed Infrastructure and Systems
Provide our commercial brands and their respective
dealer networks with the support required to position
Parts & Service as a competitive advantage.
Parts & Service May 8, 2014 18
|
INVESTOR DAY
AUBURN HILLS
MAY 8TH, 2014
EMEA
Andreas Klauser
INVESTOR DAY AUBURN HILLS MAY 8TH, 2014
|
EMEA
The Largest CNH Industrial Region in Terms of Revenue
2013 revenue of $14.2 billion, 42% of total CNH Industrial
revenue
5 segments: AG, CE, CV, PT and Financial Services
Commercial branches in 20 countries
33 Manufacturing plants with 46 product lines
26 R&D Centers
More than 1,700 dealers and importers:
EMEA May 8, 2014 20
~3,600 points of sale
|
EMEA
CNH Industrial is a Leader in the Capital Goods Sector
Agricultural Equipment Commercial Vehicles Construction Equipment
Tractors Ranking* Light Trucks Ranking* Light Ranking*
1
5
11 Medium Trucks
2
2
Combines
Heavy Trucks Heavy
7
8 Major H&F
3 Buses
EMEA May 8, 2014 21
2
(*) 2013 Ranking by number of units sold
|
EMEA ? Distribution
20 Countries with Direct Presence and over 1,700 Dealers
559
1055
734
950
Europe
Dealers POS
Europe
Countries with a commercial branch
*
396
104 93
386
225 189
AME Dealers POS*
South Africa
46 22 28 25
135 117
50 64 61
168
EMEA May 8, 2014 22
* POS: point of sales (primary network)
|
EMEA - Industrial Footprint
33 Plants Serving 6 Business Units and 46 Product Lines
Europe
33 Manufacturing Facilities
Agricultural
Equipment
6 Business Units and 46 Product Lines
Construction
Equipment
CNH Industrial Manufacturing Trucks
Facilities
Consolidated Joint Venture
AG CE
Trucks
Specialty Vehicles
Buses
Specialty
Vehicles
Bus
South Africa Powertrain
EMEA May 8, 2014 23
New Plant Under Construction Powertrain
|
EMEA
Agenda
1 Agricultural Equipment
2 Commercial Vehicles
3 Construction Equipment
4 CNH Industrial Initiatives
EMEA May 8, 2014 24
|
EMEA - Agricultural Equipment
Crop Production is Expected to Grow, Particularly in Africa and Middle East
CAGR 13 18 531 557 Europe
Production of wheat, coarse grain, rice,
oilseeds, cotton, sugar beet and sugar cane
EMEA +0,9% (million metric tons)
(million metric tons) 165 171 44 50 114 118 CAGR 0,8% 55 27 61 62 63 127 133 791 843 206 215
2013 2018 287 Africa & Middle East +2,0% 320 342 205 214 21 20 40 43 11 25 2 12 61 2
13 63
260 15
2013 2018
Sugarbeet
Sugarcane
Cotton
Oilseeds
Rice
EMEA
Source: OECD?FAO Agricultural Outlook 2013?2022
114 127
Note: Oilseeds include soybean, grape seed, ground nuts and other oilseeds 2013 2018
May 8, 2014 25
Wheat
Coarse Grain
|
EMEA - Agricultural Equipment
Strong Opportunity from Agricultural Mechanization in AME
CAGR (14?20) +3%
406
194 235
1138
413
191 261
Population (million) 1312
0%
0% +2%
967
Level of Farm Mechanization (Tractors/100 Sq. Km of Arable Land) Africa and Middle East will
need to increase yield through
Western Europe Eastern Europe Middle East Africa
400
157 46
farm mechanization to
support population growth
Western Europe Eastern Europe Middle East Africa
6.7
3.4 2.5 2.0
Yield Rate 2012* (metric tons per hectare)
EMEA May 8, 2014 26
* * Production of Cereals and Oilcrops, Sugar Beet, Sugar Cane and Cotton
Source: OECD, World Bank
Western Europe Eastern Europe Middle East Africa
|
EMEA - Agricultural Equipment
Industrial Footprint
Croix FR
Antwerp BE
Basildon, UK Plock, PL
Cabins
AG Components
Zedelgem, BE St. Valentin, AT
Coex, FR Jesi, IT
EMEA May 8, 2014 27
Modena, IT
AG Components AG Equipment manufacturing
facilities
|
EMEA - Agricultural Equipment
Tractors Strategy
TIV Trend Period 2014?2018
Total Industry Volume:
Total Industry Value :
Increase market share across tractor segment
Maintain leadership in specialty segment
Leverage India and Turkey sourced tractors to
further penetrate MEA markets
Focus on the professional farmer
Target high horse power segment
CVT transmission competence
EMEA May 8, 2014 28
AFS/ Precision farming
Extension of RTK network
|
EMEA - Agricultural Equipment
Combines Strategy
TIV Trend Period 2014?2018
Total Industry Volume:
Total Industry Value :
Leader in conventional value segment
Broadest and most competitive product range
in conventional flagship
Centers of excellence in Zedelgem and Plock
Advanced PLM solutions
State of the art service and parts network
Focus on larger non?conventional combines
segment
Unique CVT transmission offering
EMEA May 8, 2014 29
Further professionalization of dealer network,
targeting large farmers
|
EMEA - Agricultural Equipment
Hay and Forage Strategy
TIV Trend Period 2014?2018
Total Industry Volume:
Total Industry Value :
Hay & Forage segment represents the largest single
opportunity for product line expansion and future growth
for the New Holland brand
Maintain leadership in large square balers
Leverage round balers offering to grow in the livestock
segment
New investments to complete the offering in implement
business
EMEA May 8, 2014 30
Extend the product offering to target large contractors
|
EMEA
Agenda
1 Agricultural Equipment
Commercial 2 Construction Equipment
3
Vehicles
CNH Industrial Initiatives
4
EMEA May 8, 2014 31
|
EMEA - Construction Equipment 2007-2017 Construction Spending Index 2007 = 100 Index 2007 = 100
Total Construction Residential Structures Infrastructures Non-Residential Structures
By Segment By Area 15% 47% 13% 2013 Value Mix Rest EMEA
AME AME France 42% 31%
2013 Value Mix 122 142 107 117 13% 12%
of Germany Germany
UK Infrastructures 27% 108 119 100 103 89 96 100 94 UK
Total Construction
Non Residential 83 87 88
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 83 85 88
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Africa including only Egypt, Kenya, Senegal, South Africa, Tunisia
France
Structures
Non-Residential Structures
EMEA May 8, 2014 32
In Europe, expected growth led by Germany and driven by rebounds in the non?residential and infrastructure segments
Growth in AME backed by rising infrastructure spending in Africa
Source: Global Insight Dec. 2013
|
(000 units)
EMEA ? Construction Equipment
Market Expected to Grow in Africa, Stable in Europe and ME 22% 20% 2013 2018
CAGR 13?18 WW: 752k units WW: 893k units 29 31 121 126 Europe
Heavy 1.1% Light 78% 80% CAGR 1.1%
92 95 2013 2018 EMEA ROW 115 56 61 166 176 19 20 27 30 46 50
AME 1.7% Heavy 111 2013 2018
2013 2018
Light
Africa represents the fastest
EMEA
growing market for the
Construction business
May 8, 2014 33
|
EMEA - Construction Equipment
Industrial Footprint
Berlin, DE
Tracy?le?Mont, FR
Hydraulic cylinders
Lecce, IT
San Mauro, IT
Excavators
EMEA May 8, 2014 34
CE Manufacturing facilities
|
EMEA - Construction Equipment
Strategy & Top Priorities
Consolidate and strengthen the
distribution network
Reinforce value proposition with focus
Target agriculture/landscaping and small
residential segments
Expand points of on product support (Reman, ProCare)
and Parts performance
Target segments:
presence through New
Holland Agriculture network
Leverage on the new compact wheel
loader to reinforce the new light range
medium sized customers in building
construction segment
rental and key accounts in
infrastructures and road building
together with SSL, TLB and MHEX
EMEA May 8, 2014 35
|
EMEA
Agenda
1 Agricultural Equipment
Commercial Vehicles
2 Construction Equipment
3
CNH Industrial Initiatives
4
EMEA May 8, 2014 36
|
EMEA - Commercial Vehicles
Developing at Steady Growth in AME and Recovering in Europe
(000 units)
661 765 CAGR +4.2%
Europe +3.0%
Trucks Bus
Europe 1.1%
Trucks Bus
CAGR 13?18
891
1,095
2013 2018
34 36
2013 2018
2013 2018
80 94
2013 2018
CAGR +3.3%
Growth Potential in AME
will be addressed through
330 the AME
+7.5%
AME
+4.9%
Trucks Bus
EMEA May 8, 2014 37
South African JV
230
2013 2018
46 58
2013 2018
|
EMEA - Commercial Vehicles
Industrial Footprint
Trucks
Specialty Vehicles
Buses
Brescia, IT Ulm, DE
Rorthais, FR
Vysoke Myto, CZ
Valladolid, SP
Kainbach, AT
Madrid, SP
Annonay, FR Piacenza, IT Suzzara, IT
Bolzano, IT
Vittorio Veneto, IT
EMEA May 8, 2014 38
|
EMEA - Commercial Vehicles
Industrial Localization will Support AME Market Development
Joint-venture (in which IVECO holds 60%) with the
LARIMAR Group
New plant in Rosslyn (Pretoria)
Location: Rosslyn, near Pretoria in the
Automotive Industrial Park
Total Area: 182,000 sqm of which 50,000
covered
EMEA May 8, 2014 39
Product lines: Medium, Heavy Trucks and Bus
Start of Production: during 2014
|
EMEA
Agenda
1 Agricultural Equipment
Commercial Vehicles
2 Construction Equipment
3
4 CNH Industrial Initiatives
EMEA May 8, 2014 40
|
EMEA
Main Drivers for Growth
Realize market
share potential
of EURO VI
product
Expand
commercial
presence in
Re-position
Construction
Equipment
Brands open
Fully exploit
synergy potential
of industrial
launches in
Commercial
Vehicle segment
Eastern Europe
and Africa
and New Holland AG
network to CE
segment
footprint,
common systems
and processes
EMEA May 8, 2014 41
|
INVESTOR DAY
AUBURN HILLS
MAY 8TH, 2014
APAC
Stefano Pampalone
|
APAC
A Key Focus Area for CNH Industrial
From multi-local/ multi-business To structured approach fully deployed by
2018 within CNH Industrial
APAC is a Key Focus Area for CNH Industrial
Asia Pacific May 8, 2014 43
|
APAC
A Region with Growth Potential
CNH Industrial will capture this opportunity leveraging the following key drivers
Deeper
local
presence
New markets and
new businesses
Stronger
industrial
presence
New focus on
multiple product
offer
Bringing the strength of CNH Industrial in all businesses and exploiting synergies of our
Group
keeping high flexibility,
ability to understand local market conditions
and capability to translate it into actions
Asia Pacific May 8, 2014 44
in these highly dynamic markets.
|
APAC
CNH Industrial will Leverage on its International and Local Expertise
CNH Industrial has built in APAC a strong More than 2,000 dealers and importers and approx. more than 5,000 sales points
presence and good knowledge locally
Directly present in 13 countries and more than 5,200 employees
19 Manufacturing plants with 25 product lines
12 Joint Ventures
Long standing presence
12 CNH, 4 IVECO and 2 FPT R&D Centers
Asia Pacific May 8, 2014 45
60 years
in Turkey
EXAMPLES
First Axial Flow
Combine in China 1980
Distribution JV in Japan
since 1952HFT
India TLB & Compactor plant
since 1999
LCV and Light Bus Joint
Venture since 1996
|
APAC
Agenda
1 Agricultural Equipment
2 Construction Equipment
3 Commercial Vehicles
Asia Pacific May 8, 2014 46
|
APACAgricultural Equipment
APAC Accounts for the Majority of Worldwide Crop Production
APAC accounts for
50% of global wheat production 80% of rice 30% of coarse grain 21% of oilseeds 32 35
65 73 1 9 1 11 107 120 Russia & CIS 111 121 China 591 622
As well as 62% of cotton 34% of sugarcane
Production of wheat, coarse grain, rice,
oilseeds, cotton, sugarcane
2013 2018 32 34 Turkey 199 216 109 113
127 125 39 6 42 5 2013 2018
(million metric tons) 585 1,706 1,779 CAGR 0,8% 12 13 18 19 1 1 1 1 2013 2018
Indian Subcontinent
113 1 120 1 3 3 139 150 289 313
SEA & Japan
Sugarcane Cotton Oilseeds Rice
Wheat 331 361 319 345 372 387 79 14 85 15 592 43 48 104 117 130 140 23 24 312 284
619 620 34 38 2013 2018 68 71
Australia & NZ Asia Pacific
Source: OECD-FAO Agricultural Outlook 2013-2022 Coarse Grain
May 8, 2014 47 2013 2018 2013 2018 12 13 21 1 23 1 3 3 30 30 2013 2018
* (million metric tons)
* Graphs on different scales
Source: OECD-FAO Agricultural Outlook 2013-2022
|
APACAgricultural Equipment
Demographics and Progressive Urbanization will Drive Demand for AG Equipment
126 1,381 1,265 240 125 69
1,419 1,341 251 71
Population (million) Increase in population and disposable
income will drive an increase in the
overall demand for agricultural products
-1% +3% +6% +4% +2% 7.0
Level of Farm Mechanization (HP/Ha)
Urbanization and reduction in rural labor
and stagnant acreage of arable land will
put pressure to produce more food from
same area with fewer people dedicated to
Japan China India Indonesia Thailand
4.1 1.0 1.3 1.6
agriculture.
This will translate into a demand for
mechanization, a higher yield and a more
Japan China India Indonesia Thailand 4.14 4.27
1.89 3.15 2.06
Yield Rate 2013* (metric tons per hectare)
professional approach.
APAC countries will need to increase
drastically mechanization to drive
Asia Pacific May 8, 2014 48
productivity
* Production of wheat, coarse grain, rice, and oilseeds Source: OECD, World Bank
Japan China India Indonesia Thailand
|
APACAgricultural Equipment
CNH Industrial will Concentrate its Investment in the Key Areas with Higher
Expected Growth in Terms of Mechanization
China PLANTS Harbin Tract. & Comb.
Urumqi Cotton Pickers [ 14.8%] [ 14.1%] ? Foshan Sugarcane
Indian Subcontinent PLANTS New Delhi Tractors Pune Harvester (2016) Dera Ghazi Khan Harvester Shanghai - Tractors
Point of Sales: 282 Tractors Point of Sales: 762 14.8%] Turkey & Caucasus
PLANTS Ankara Tractors [ 0.8%] Russia & CIS PLANTS Chelny Tractors & Combines
Tashkent - Tractors Point of Sales: 100 Sugarcane [ 2.6%] Cotton Wheat
MAIN CROPS
Point of Sales: 650
SEA & Japan
Australia & NZ
No plant Rice
Coarse Grain
Oilseeds
[%] percentage
of global main
crop production
No plant
Asia Pacific May 8, 2014 49
Point of Sales: 451
(SEA) + 76 (JP)
[6.9%]
SEA Japan
Point of Sales: 268
[1.6%]
Level of Mechanization Very high High Medium Low
Manufacturing Plants CNH Industrial Consolidated JV Unconsolidated JV
|
IndiaAgricultural Equipment
Long Standing Presence in the Country
Joint venture
Ford Tractor / Escort
SOP of Engine S8000
(Assembly and testing)
Export of tractors to
North America & Power
Train to Brazil & Mexico
Before 1998 1998/99 2000 2003 2006 2012 2013
Export of Tractors to
APAC and AME, and
Start of operation in
Launch of CE European
Axle (Value Engineered
CE Axle) & Utility
250,000th Tractor rolled
out; Asia Pacific May 8, 2014 50
components to Europe
fully owned plant with
5575 HP tractors
Medium Std. and HD
Axle
Sugar Cane Harvesters
|
IndiaAgricultural Equipment
All Indicators Point to a Transformation of Agriculture
Demand to outstrip production
Low productivity Low yield
Stagnant arable land and 60% dependent on monsoon
Scarcity of agricultural labor, giving rise to professional farming
Higher inputs costs
Asia Pacific May 8, 2014 51
One of the lowest mechanization levels in APAC
|
IndiaAgricultural Equipment
Low Level of Mechanization across the Crop Cycle
Crop Cycle
Level of Mechanization
~40% ~29% ~35% ~37% ~60%
Wheat / Rice ~ 5% others ~30%
Overall about 40-45%
Tillage & Preparation
Sowing / Planting Fertilizer
Application Irrigation Harvesting Post Harvesting
Plant Protection
Crop Care Predominance of basic
equipment mainly utilized in
Low High the land preparation phases
Level of Mechanization
Asia Pacific May 8, 2014 52
Inter Row cultivation Localized CNH Industrial Product Offer
Not localized CNH Industrial Product Offer
No CNH Industrial Product Offer From tractorization to full mechanization
|
IndiaAgricultural Equipment
Still Significant Losses from Ineffective Harvesting Operations
Food Grains
Basic combine harvester
Grain Loss: 10%15% Output increase from same land
Manual harvesting/ threshers
Grain Loss: 15%20%
Pulses Productivity increase and enhanced
crop Manual harvesting/ threshers
Grain Loss: 15%20%
Oil Seeds intensity
The Future Crop
Driven by dairy and poultry
industries which are growing fast
(10%-15% per year)
Corn
Improve AG practices
Asia Pacific May 8, 2014 53
Space for a quantum leap improvement in yields from introduction of improved agricultural practices
|
IndiaAgricultural Equipment
Key Pillars of CNH Industrial Growth
Enhance offering in the higher segments
Solutions targeted to achieve increase in productivity
Strengthen Tractor Offer
Additional 100+ Harvesting Solutions
Drive mechanization of a key process in the crop cycle,
Multi-crop combine harvesters, sugar cane harvester, cotton picker
dealers by 2018
Enhance competencies to sell more sophisticated equipment
Provide better opportunities for dealers to reinvest in the business Network
Financial Services
Tailored financing solution
Upcoming presence of CNH Industrial Capital for Wholesale & Retail
Asia Pacific May 8, 2014 54
Export Export locally produced products in other markets
|
IndiaAgricultural Equipment
CNH Industrial Continues to Invest in India to Better Satisfy Local Demand
Punjab Uttaranchal
Chandigarh Himachal Pradesh
Jammu and Kashmir
AXLE PLANT TESTING TRACK
PD Whsp TYRE CASTING YARD TRACTOR STORAGE
PUNE (Start of Production Q1 2016) NOIDA (Start of Production 1994)
Uttar Rajasthan Pradesh Delhi
Haryana Bihar Meghalaya Sikkim Manipur Assam Arunachal Pradesh Nagaland
SPD TRACTOR PLANT YARD UTILITY AGG WH CANTEEN PAINT SHOP MAIN GATE
Main Flows Inbound Material Product Outbound Finished Goods People
Madhya Pradesh Tripura Mizoram Orissa Jharkhand West Bengal Maharashtra Dadra & Nagar Haveli
Gujarat Covered area: 43k sqm Daman & Diu
Products: Harverster
Covered area: 80k sqm
Products (~40% Export) : Tractors
P t i i PTO A l
A d d Andhra Pradesh Chattisgarh Karnataka Goa Pondicherry
Harvesting plant to serve Indian market Integrated tractor plant for India and Export
Powertrain engine, PTO, Axles
Asia Pacific May 8, 2014 55
Tamilnadu Andaman and Kerala Nicobar Islands
|
ChinaAgricultural Equipment
Attractive Fundamentals
Large with increasing disposable Leading producer of crops for food, feed and industrial use
population income
Urbanization and decreasing rural labor force
Governments encouraging localization of products
Relatively low mechanization in several crops
Asia Pacific May 8, 2014 56
|
ChinaAgricultural Equipment
Presence in the Market for Over a Hundred Years
Import of the first Tractor
in China Import of the first Case IH
Axial flow combine in
China Presentation of first
grape harvester in China
@ CIAME show
Early 1940 1980 1999 2012 2013
1900 Collaboration between Inauguration two harvesting
Asia Pacific May 8, 2014 57
Inauguration of high HP
tractor plant in Harbin
of specialized plants (Urumqi and Foshan)
International
Harvester and
Chinese university
|
ChinaAgricultural Equipment
Key Pillars of CNH Industrial Growth
Focus on higher end of the market
Higher technological content compared to local competitors
Strengthen Presence in Tractor Harvesting Solutions
Focus on: Corn, Cotton, Sugar Cane
Products developed for China, produced in China Technology AG
Development for China The largest R&D facility in Northeast China
Highly competent local team
Focus on products tailored for the needs of the Chinese market
Wider coverage of provinces increasing number of dealers by 2018
Network targeting excellence in service
Asia Pacific May 8, 2014 58
Financial Services Tailored financing solutions
Upcoming presence of CNH Industrial Capital for Wholesale & Retail
|
ChinaAgricultural Equipment
Significant Manufacturing Expansion
URUMQI (Q3 2013) HARBIN (Q3 2014)
Cotton picker assembly
Covered area: 113k sqm, additional
27k sqm possible
FOSHAN (Q3 2013)
Products: tractors, harvesters and H&F
Solutions for corn production lifecycle
Harvesting assembly
Asia Pacific May 8, 2014 59
|
TurkeyAgricultural Equipment
CNH Industrial is the Market Leader in Tractors and Combines
The most experienced tractor manufacturer in Turkey
The most extensive distribution network
The most wide-ranging product offering
60 years of presence in
the country
Asia Pacific May 8, 2014 60
|
TurkeyAgricultural Equipment
All Indicators Point to an Increasing Sophistication of Demand
? Agricultural market becoming more professional
? Land ownership progressively consolidating due to urbanization
? Mix shift to higher HP ? Growing importance of implements and other equipment and richer content
CNH Industrials target is to strengthen its current position in the market
Asia Pacific May 8, 2014 61
|
TurkeyAgricultural Equipment
Key Pillars of CNH Industrial Growth
Strengthen leadership in all segments above 70hp
Increased focus on specialty tractors
Leadership in Tractor Segment Harvesting Solutions
Maintain leadership in combines
Localize cotton pickers tailored to the market needs
Local R&D Strong R&D center
State of the art production processes
Competitive supplier base
Turk Traktor base for export
Asia Pacific May 8, 2014 62
Strong Network The most extensive and professional network in Turkey
Further develop via dedicated training and tools
|
TurkeyAgricultural Equipment
Strong Manufacturing Footprint
Ankara New Plant Erenler
Start of Production: 1955
Covered area: 83k sqm,
Products: tractors for domestic and
Start of Production: Q3 2014
Covered area: 68k sqm (Phase 1)
export markets worldwide, drivelines
to other CNH Industrial plants
Products: tractors for domestic and
export markets worldwide
Asia Pacific May 8, 2014 63
Fully integrated (engines, drivelines, tractors) Tractors Assembly
|
APACAgricultural Equipment
Key Pillars of CNH Industrial for next 5 Years
Technology portfolio
Significant investments 1 2 3 to
drive mechanization
across the region with
competitive solutions.
Extensive presence region and considerable
knowledge base with excellent service portfolio. in
tailored products and industrial footprint in the p region. Best cost country
FIRST IN THE MARKET
DEEP IN THE MARKET
opportunities.
EFFECTIVE IN THE
MARKET
Asia Pacific May 8, 2014 64
|
APAC
Agenda
1 Agricultural Equipment
3 Commercial Vehicles
2 Construction Equipment
Asia Pacific May 8, 2014 65
|
APACConstruction Equipment
CNH Industrial is Focusing its Attention on India
+0,7% Asia Pacific will continue to represent the
large majority of the worldwide
construction equipment market (51% by
2018 up from 47% in 2013)
27 28 2013 2018
Russia & CIS
150 216
China +7,6%
APAC
SEA & +1,8%
60% 353 454
CAGR 5,1%
12 12
Turkey & Caucasus 2013 2018
+0,3% (000 units)
115 125
2013 2018
41% 40%
59% +10,0%
2013 2018
2013 2018
Light Heavy
expected growth 35
57 2013 2018
India Australia & NZ
+1,7% CAGR 13 18
Asia Pacific May 8, 2014 66
* Charts on different scales
* (000 units)
Pithampur Plant
India: Highest 15 16 in the next several years
2013 2018
|
India - Construction Equipment
Sales of Construction Equipment is Expected to Rise in India
CAGR
25-35 10-15 12-16
Forklift Wheel Loaders
Mobile Cranes
Crawler Excavator
Backhoe Loader
330-450
15-20% 22-27% 13-18% 2012-20
Fundamental growth from traditional
end-user industries
Main growth drivers: 95-120
Transit Mixers Other
25-30% 20-25%
Higher adoption in traditional
applications
Demand from new applications/
segments such as agriculture.
140-190 35-40 14-18 7-8 4-6 160-180
20-25% Growing urbanization
Increased affordability
10 24-27 43-59 4
7-10 11-14 32 65-75
15 9 2 76 4 12-17% 20-25%
Better availability of financing and the
increased use of rentals
Asia Pacific May 8, 2014 67
2012 2016 2020
$ 3 billion $ 7-8 billion $ 16-21 billion
Backhoe loader will continue to dominate the market
(>40% of total demand)
Source: AT Kearney Roadmap for Realizing ECE Industrys Long Term Potential
|
India - Construction Equipment
2nd Position in Backhoe Loader and 1st in Compactors
Renewed line up
Targeting domestic and export markets
Leader in India
Renewal and extension of line up
Asia Pacific May 8, 2014 68
|
APAC - Construction Equipment
Control of Distribution Network in South East Asia and ANZ since 2013
Full of in Korea
control distribution SEA and ANZ since 2013
41 importers & 220 sales points Taiwan
Hong Kong Guam Tahiti
Distributing full line?up of heavy and light equipment
Myanmar Thailand Vietnam
Malaysia Philippines
Aggressive plan to strengthen network and presence
Sri Lanka
Singapore
Indonesia Timor-Leste dealers
Asia Pacific May 8, 2014 69
Australia
|
APAC - Construction Equipment
Key Pillars of CNH Industrial for Next 5 years 1 2 3
Capture growth of domestic Develop and export distribution in Leverage European markets fully exploiting the manufacturing footprint in India South East Asia and ANZ after regaining full control in 2013 manufacturing footprint Asia Pacific May 8, 2014 70
|
APAC
Agenda
1 Agricultural Equipment
2 Construction Equipment
3 Commercial Vehicles
Asia Pacific May 8, 2014 71
|
APAC - Commercial Vehicles
Trucks Market (excl. Areas where IVECO is not present)
21% 13% 22% 13%
2013
WW: M5,145 unit
2018
WW: M 5,770 unit
252 278
Russia & CIS
.0% 1.9% 66% 65%
Turkey
2013 2018
3,367 3,700
2013 2018
China
+1.2% 0
APAC w/o China China ROW
4,028 4,420 66 70 CAGR +1.9%
2013 2018
+1.6% +1.2%
2013 2018
34 36
2013 2018
Australia & NZ
309 335
2013 2018
SEA
Asia Pacific
APAC market is expected to continue to grow and will remain largely dominated by China domestic volumes (84% of APAC)
72 CAGR 13-18
May 8, 2014
(000 units)
|
APAC - Commercial Vehicles
An Heterogeneous Market with Different Product Needs in each Region
65% 19% 6% 41% 29% 40%
2013 2018
Russia & CIS
China 5% 12%
Total APAC 94% 95%
Turkey 63% 21% 36% 71% 1% 9%
2013 2018
37% 69% 6% 5% 2013 2018
89% 86% Australia & NZ
5% 6%
SEA
2013 2018
50% 50% 50% 50%
2013 2018
6% 8%
2013 2018
Low End Value Asia Pacific May 8, 2014 73
Premium With the strength of the Group, CNH Industrial is now better equipped to compete in the region Source: IHS & CNH Industrial Estimates
(units 000s)
|
APAC - Commercial Vehicles
IVECO Product Line-Up is able to Address Different Market Needs
Light Commercial Vehicles GVW 3-7 t Medium trucks
GVW 6-26 t
Heavy trucks
GVW >16 t
Heavy off-road
Trucks up to 300 t GCW
Sourced from EMEA
Van / Cab / Crew-cab Cab / Crew-cab On/Off Road Rigid dumper up to 50 t payload
Light Commercial Vehicles GVW 3,6- 5 t
Van / Cab / Crew-cab
Heavy trucks GVW >16 t
On/Off Road
Minibus Built up 5-7 m 10-19 seats
Light trucks *
GVW 3,5-6 t
Cab / Crew-cab
Sourced from China JV VALUE SEGMENT Domestic
China JV
YUEJIN Brand Light & NAVECO Brand
SIH Brand Heavy trucks
Yuejin & SIH Brand
Asia Pacific May 8, 2014 74
BRANSD Medium Trucks
GVW 3-15 t Light Trucks & Buses
Turbo Daily / Power Daily
GVW >15 t
Special Vehicles
e.g. Wide Tipper Range
|
China - Commercial Vehicles
Differentiated Approach Tailored to Market Needs
China Rest of APAC
Asia Pacific May 8, 2014 75
|
China - Commercial Vehicles
First European OEM to Establish Partnership with Local CV Manufacturer
Establishment of NAVECO - Light and SAIC/FIAT/HY engine JV in Acquisition of Hongyan with SAIC & Chongqing Heavy Iveco DAILY
license to NAC medium duty trucks
Chongqing (SFH) -
Engines
Machinery (SIH) -
On-road and offroad heavy duty trucks
1985 1987 1996 2007
Establishment of SAICIVECO
CV Investment
Company Iveco Representative
Office in China CHINA
First western CV
manufacturer to export from China
Asia Pacific May 8, 2014 76
NAVECO integrates
Yuejin assets
|
China - Commercial Vehicles
Key Market Dynamics
Progressive increase in importance of heavy haulage segments driven by
urbanization and improvement in transport infrastructure
Convergence of technology with global standards to accelerate as emission limits
become stricter
Increasing space in the market for high spec import heavy trucks for specific
missions
Large and price driven low?end segment dominated by non?allied local players
Local players seeking to grow export in value segments leveraging cost advantage
Asia Pacific May 8, 2014 77
|
APAC - Commercial Vehicles
Leveraging JVs Products to Target Value Segment Worldwide
Exclusivity to distribute JVs
products through Iveco network
Full line up of on?road and offroad
Heavy Duty Trucks to address
the value segments in Russia & CIS,
South East Asia, AME, Latin America
Full line up of Cab?Over trucks to
address the core light and medium
truck segments in Russia & CIS,
South East Asia, Australia & New
Zealand, AME
Asia Pacific May 8, 2014 78
AFRICA & MIDDLE EAST
LATIN AMERICA
|
APAC Offers Many Opportunities for Growth
APAC Deeper local presence New markets and new businesses
Stronger industrial presence New focus on multiple product offer
Bringing the strength of the Group to all businesses and exploiting keeping high flexibility, ability to understand local market conditions synergies of the total portfolio
Asia Pacific May 8, 2014 79 and capability to translate it into actions in these highly dynamic markets.
|
INVESTOR DAY AUBURN HILLS MAY 8TH, 2014 LATAM
Vilmar Fistarol
|
LATAM
The Third Largest Region in Terms of Revenue
2013 revenue of $6.4 billion, 19% of total CNH Industrial revenue
5 segments: AG, CE, CV, PT and Financial Services
10 Manufacturing plants with 34 product lines
New Plant: AG/FPT in Cordoba (2013)
5 R&D Centers
More than 340 dealers and importers: approx. 1,050 points of sales
5 Parts Depots: Sorocaba Master Depot is the most advanced depot
in the region, serving all CNH Industrial customers
LATAM May 8, 2014 81
Direct presence in 3 major markets (Brazil, Argentina and
Venezuela) and distributors in all other markets
|
LATAM
CNH Industrial is a Leader in the Capital Goods in LATAM
Tractors Ranking* Light Trucks Ranking* Light Ranking*
Agricultural Equipment Trucks Construction Equipment 2 3 1
Combines Medium Trucks 1 4
Heavy 6 2
Sugar Cane Harvesters Heavy Trucks 2
LATAM May 8, 2014 82
(*) 2013 Ranking by number of units sold
|
LATAM - Distribution
Direct Presence in the Major Markets 370 221 208
LATAM Dealers POS 347 1,055 *
122 85 37 39 64 113 143 192
Brazil Dealers POS
146 486 62 37 12 6 29 116 46 31 101
LATAM May 8, 2014 83
(*) POS (primary network)
|
LATAM
Manufacturing Footprint
10 6 in Brazil
3 in Argentina
1 in Venezuela
Plants 6 Business Units and 34 Product Lines AG CE Trucks Bus AG CE Specialty Vehicles
LATAM Commercial Vehicles Powertrain May 8, 2014 84
Powertrain
|
LATAM
Agenda
1 Agricultural Equipment
2 Construction Equipment
3 Commercial Vehicles
4 CNH Industrial Initiatives
LATAM May 8, 2014 85
|
Brazil
LATAM - Agricultural Equipment
Crop Production is Expected to Grow
CAGR 13-18 722 864 888 1,044
Production of wheat, coarse grain, rice,
oilseeds, cotton, sugar beet and sugar cane
LATAM +3.3%
Other LATAM Sugar cane
(million metric tons)
75 77
77 86
2013 2018
( million metric tons)
CAGR 3.1%
10 9 16 11 18 18 19
104 113
+1.6% 1,123 1,306
Oilseeds
Coarse Grain
52 56 9
2013 2018
32 130 149
Argentina +2.8%
25 30 147 169 772 915
Sugar cane 11 14 54 65 32 158 170 2013 2018 Oilseeds Sugar Cane 75 ton/ha Average Yield in the Region Wheat Sugarcane Cotton
Oilseeds Rice
LATAM May 8, 2014 86
31 36
2013 2018
Soybean 2.8 ton/ha
Coarse Grain Corn 5.3 ton/ha
Source: OECD-FAO Agricultural Outlook 2013-2022
Wheat Coarse Grain
|
LATAM - Agricultural Equipment
Demand Driver
Automotive 9 37 50
Fleet in Brazil
(Millions of Cars)
Ethanol Production
(Billions of Liters)
25 41 12
CAGR 10.5%
29
CAGR 9.7% 46
CAGR 3.9%
Sugarcane Production
(Millions of Tons)
Flex Fuel
Petrol
2014 2020
722 874
2013 2019
2013 2019
LATAM May 8, 2014 87
Flexfuel fleet in Brazil will increase demand for ethanol
|
LATAM - Agricultural Equipment
Industrial Footprint
Piracicaba, BR Sorocaba, BR
Cordoba, ARG Curitiba, BR
LATAM May 8, 2014 88
Agricultural Equipment manufacturing facilities
|
LATAM - Agricultural Equipment
Tractors Strategy
TIV Trend Period 2014?2018
Total Industry Volume:
Total Industry Value :
Full product offering, from Specialty to large HP
tractors
Focus on all segments, including fruit, biomass,
irrigated rice
Maintain leadership in the small and medium
producers
Focus on professional cash grain and sugar cane
producers with advanced technology equipment
Strengthen leadership in the high horse power
segment
LATAM May 8, 2014 89
|
LATAM - Agricultural Equipment
Combines Strategy
TIV Period 2014?2018
Trend Total Industry Volume:
Total Industry Value :
Build on the brand awareness of the longest
established combines presence in Brazil
Complete product offering with both
conventional and rotary combines
Further develop current strong presence in
the South of Brazil with conventional
combines
Advanced technologically oriented products focused
on improving productivity
Further develop the current strong presence in the
large cash grain operations in Brazil central region
(Mato Grosso)
Invest to maintain best in class in the quality grains
through its rotary system combine technology
LATAM May 8, 2014 90
|
LATAM - Agricultural Equipment
Sugar Cane Harvester Strategy
TIV Trend Period 2014?2018
Total Industry Volume:
Total Industry Value :
Focus on the multi-row technology
Leverage auto-guidance and
telematics solutions
LATAM May 8, 2014 91
|
LATAM
Agenda
1 Agricultural Equipment
2 Construction Equipment
Commercial Vehicles
CNH Industrial Initiatives
3
4 LATAM May 8, 2014 92
|
LATAM - Construction Equipment 2007-2017 Construction Spending by Segment by Area
152 146 135 156 141 33% 19%
2013 Value Mix 49% 18% 23%
2013 Value Mix Rest of LATAM Brazil Infrastructures
Total Construction
Non-Residential Structures 123 142 134
Brazil Rest of Mercosur Argentina
127 121 136 119 48% 10% Rest of Mercosur Argentina Residential Structures 111 126 121 100 100
Infrastructures include: Transportation, Public Index 2007 = 100
Total Construction
Residential 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Health and Energy
Non-Residential Structures include: Commercial,
Industrial, Office and Institution Structures Infrastructures
Non-Residential Structures
Cautious optimism in LATAM construction spending outlook (+3,6%
CAGR 2013-2017)
Brazil remain the powerhouse of the Region (~50% LATAM)
Non-residential investments expected to increase 3.9% CAGR
LATAM May 8, 2014 93
Source: Global Insight Dec. 2013
Most economies expected to accelerate from 2014 to 2015 at high pace
(~6%) and slow down decelerate in the future (+2,2% CAGR 2015-2017)
Boost of infrastructure spending in Brazil ~4% CAGR 2012-2017 due to governmental projects:
US$13.6 billion on projects aimed at building low-cost homes
10-year energy plan (total US$507 billion investments)
|
LATAM - Construction Equipment
Market Expected to Sustain High Level
(000 units)
2013 2018
WW: 751k units WW: 893k units
CAGR 13-18
10 12
18 22
Other LATAM 3.7%
Heavy Light
CAGR 1.2% 8 10
2013 2018
31 31
Brazil -0.2 %
26 26
50 53
14 15
17 15
2013 2018
Heavy
Argentina 1.2%
24 27
2013 2018
2 2 Light
1 1
3 3
2013 2018
LATAM Row
Infrastructure and rental are the fastest growing segments
Last 5 years market average was 42.1K units
LATAM May 8, 2014 94
|
LATAM - Construction Equipment
Industrial Footprint
Belo Horizonte, BR
LATAM May 8, 2014 95
Construction Equipment manufacturing facility
|
LATAM - Construction Equipment
Strategy & Top Priorities
Expand product portfolio:
Localized CHEX models offering in Brazil
New dozer localized in Brazil, compactor
Expand product portfolio:
Localized CHEX models offering in Brazil
production, SSL Improve and extend the WL range
Reinforce Parts & Service support
Expand retail financing in the rest of Latin America
Target segments building construction
New dozer localized in Brazil
Increase presence in selected segments: light
mining/quarries, waste handling, sugarcane
Strengthen the network in the rest of Latin America medium?large customers
LATAM May 8, 2014 96
|
LATAM
Agenda
1 Agricultural Equipment
2 Construction Equipment
Commercial Vehicles
CNH Industrial Initiatives
3
4 LATAM May 8, 2014 97
|
LATAM - Commercial Vehicles
Trucks Market Evolution
(000 units) 2013 2018 4% 4%
WW: 5,145k units WW: 5,770k units
Excluding India
16 17 Venezuela
+1.2%
CAGR 13?18
96% 96%
CAGR +2.4%
+2 9%
and NAFTA
2013 2018
226
176 203 255
2013 2018
Brazil
34 35
Argentina +0.6%
2013 2018
50% 10
2013 2018
LATAM Row
LATAM May 8, 2014 98
of total fleet is older than years, generating positive impact on market demand
|
LATAM - Commercial Vehicles
Manufacturing Footprint
La Victoria, Ven. Sete Lagoas, BR
CKD Assembly
Cordoba, ARG
LATAM May 8, 2014 99
Commercial Vehicles
|
LATAM - Commercial Vehicles Growth Drivers
Light Build on Iveco Daily strong recognition as major player in the light
segment Light with leading Chassis-Cab and rear wheel drive
Medium Complement product offering in the vocational applications: Beverage,
Refuse Collectors, Sugar Cane and Concrete Mixers
Heavy Leverage recent launch of Stralis Hi-Way in Brazil (Q4 2013) to grow in the heavy segment
Bus Expand offering on Mini Bus segment and launch of 17 ton in the Defence chassis heavy Bus segment
Further develop the LATAM May 8, 2014 100
long term contract with the Brazilian Army on the 6x6
|
LATAM
Agenda
1 Agricultural Equipment
2 Construction Equipment
Commercial Vehicles
CNH Industrial Initiatives
3
4 LATAM May 8, 2014 101
|
LATAM
Main Drivers for Growth Build on leading position in the
Agricultural segment
Fully exploit potential
Increase capillarity of Argentinas
of distribution
Increase localization
of components in
with significant LATAM to improve
expansion of
product line?up
manufacturing
expansion
across the region cost
competitiveness
LATAM May 8, 2014 102
|
INVESTOR DAY AUBURN HILLS MAY 8th 2014 NAFTA
Brad Crews
|
NAFTA
The Second Largest CNH Industrial Region in Terms of Revenue
2013 revenues of $9.5 billion, 28% of total CNH Industrial revenues
4 segments: AG, CE, PT and Financial Services
11 Manufacturing facilities including 1 joint venture 12 R&D Centers 10 Parts Depots
More than 1,100 dealers and
NAFTA May 8, 2014 104
Approximately 2,300 points of sale
|
NAFTA
CNH Industrial is a Leader in Capital Goods in North America Tractors
Light 2
Ranking*
Ranking*
Agricultural Equipment Construction Equipment 3
Combines Heavy 2
Crop Production 5
Major H&F 1 2
NAFTA
Source: Management estimates, Off Highway Research 105
(*) 2013 Ranking by number of units sold
May 8, 2014
|
NAFTA - Distribution Network
Over 1,100 Dealers
NAFTA Dealers POS *
633 391 989 880 341 24 47 98
POS
New Holland AG selling NH CE 761
Case selling Case CE NAFTA
(*) POS Point of Sale: primary network IH 402
May 8, 2014 106
|
NAFTA - Industrial Footprint
9 in United States
1 in Canada
1 11 Manufacturing Facilities
AG
Joint Venture Mexico
3 Business Units and 46 Product Lines
Tractor and Harvester AG Implements CE Powertrain
AG CE NAFTA Unconsolidated Joint Venture May 8, 2014 107
|
NAFTA
Agenda
1 Agricultural Equipment
2 Construction Equipment
3 CNH Industrial Initiatives
NAFTA May 8, 2014 108
|
NAFTA - Agricultural Equipment
Crop production is expected to remain stable
(million metric tons) Production of wheat, coarse grain, rice,
oilseeds, cotton, sugar beet and sugar cane
NAFTA
(million metric tons)
CAGR 0.1%
CAGR 13- 18 28 3 30 3 27 28 647 648 US & CANADA +0.1% Sugarbeet Sugarcane Cotton 27 28 681 686 Sugar beet 378 373 88 85 6 7 Oilseeds 116 123 Rice Wheat 92 89 117 123 28 3 30 4 Sugar cane Cotton Oilseeds Rice Wheat +1.8% 2013 2018 Coarse grain
408 406 2013 2018 Coarse grain
USA: Planted hectares for corn, soybeans and wheat
30 33 4 4
35 Mexico 38 92.3 87.8 29.3 29.3 In Million Hectares USA Canada - 4%
Canada: Planted hectares for wheat, canola, barley and other major crops Sugarbeet Sugarcane Cotton Oilseeds Rice Wheat NAFTA May 8, 2014 109 Source: OECD-FAO Agricultural Outlook 2013-2022 Note: Oilseeds include soybean, grape seed, ground nuts and other oilseeds 2013 2018 2013 2018 US Source: USDA; Canada: Statistics Canada
Coarse Grain
|
NAFTA - Agricultural Equipment
Industrial Footprint
Manufacturing facilities
Unconsolidated Joint Venture
Saskatoon, SK (Can.) Fargo, ND
Benson, MN Racine, WI
Grand Island, NE New Holland, PA
Queretaro (Mexico) Goodfield, IL
Joint Venture
NAFTA May 8, 2014 110
|
NAFTA - Agricultural Equipment
Tractors Strategy
TIV Trend Period 2014?2018
Total Industry Volume:
Total Industry Value :
Focus on the high horsepower needs of the professional producer
Leverage new offerings of CVT (Continuously
Variable Transmission), RowTrac and QuadTrac
Grow the Precision Farming (AFS) business
Achieve market leadership in 4WD
Grow mid?range tractors business in dairy and livestock segments
Build on the Clean Energy Leader platform
Focus on municipality segments for
NAFTA
Specialty and tractors below 100 HP
May 8, 2014 111
|
NAFTA - Agricultural Equipment
Combines Strategy
TIV Trend Period 2014?2018
Total Industry Volume:
Total Industry Value :
Focus on the professional producer
Leverage the new full line offering of Case IH headers
Leverage position of first rotary combine
Dual?solution approach targeting small grain markets
NAFTA
Leverage partnership with Growth Energy in the ethanol grower markets
May 8, 2014 112
|
NAFTA - Agricultural Equipment
Hay & Forage Strategy
TIV Trend Period 2014-2018
Total Industry Volume:
Total Industry Value :
Focus on the commercial producers large square baler and SP windrower needs Continue to pursue innovation as the market leader New products
Round balers
Disc mower conditioners
Self-propelled windrowers
NAFTA
New self-propelled forage business unit
Leverage partnership with National Cattlemens Beef
Association (NCBA)
May 8, 2014 113
|
NAFTA - Agricultural Equipment
Crop Production Strategy
TIV Trend Period 2014-2018
Total Industry Volume:
Total Industry Value :
Focus on the professional producer and commercial market places
Continue to grow production capacity and product offering
Leverage market leading precision spraying technology
Focus Crop Production unit to grow brand position in small grain markets
NAFTA
Expand presence in disc drill markets with new products
May 8, 2014 114
|
NAFTA
Agenda
1 Agricultural Equipment
2 Construction Equipment
3 CNH Industrial Initiatives
NAFTA May 8, 2014 115
|
NAFTA - Construction Equipment
2007-2017 Construction Spending
Detail by Segment Detail by Sub-Segment: Non Residential and Infrastructures
127 141 120
36% 39% 2013 Value Mix Infrastructures Energy Industrial
99 101 78 100 92 93 111 78 96 90 100 111 74 92 25% Total Construction
Transportation
Public Health Institutional
50 74 62 69 74 Residential Structures Total Construction Residential Structures Commercial Office
44 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Spending on US residential construction expected to show robust growth (7.9% CAGR 2012-2017).
US housing starts growing 15.4% a year in the 2012-2017 period
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Index 2007 = 100
Infrastructures Non-Residential Structures NAFTA
Global economic recovery accelerates exports, boosts business confidence, and leads to a pickup in non-residential investment
Canadian spending/demand fell sharply late 2013. Housing starts expected to retract slightly in 2014 and remain at that level in 2015
Source: Global Insight Dec. 2013
Infrastructures include: Transportation, Public Health and Energy
Non-Residential Structures include: Commercial, Industrial, Office and Institution
May 8, 2014 116
|
NAFTA - Construction Equipment
Moderate Recovery
(000 units) 2013 2018
24% 76% 24% 76%
CAGR 13-18 WW: 752k units WW: 893k units 206
NAFTA (excl. Mexico) 2.9 % Heavy Light
182 210 CAGR 2.9% 130 151 48 55 179 2013 2018
NAFTA ROW 132 153 50 57 Heavy 2013 2018 Light
Market is expected to recover at moderate 2 2 2 2 3 4
2013 2018 Mexico 1.5%
NAFTA May 8, 2014 117
pace after downturn.
Light vs. Heavy proportion will remain stable
|
NAFTA - Construction Equipment
Manufacturing Footprint
Construction Plants
Unconsolidated Joint Venture
Burlington, IA Fargo, ND
Wichita, KS Calhoun, GA
NAFTA
Queretaro (Mexico)
Joint Venture - Components
May 8, 2014 118
|
NAFTA - Construction Equipment
Strategy & Top Priorities Strengthen distribution Leverage Heavy line offering
Leverage on the new compact wheel
loader and complete New Holland product range
Target segments:
Road and building construction, dealer rental yards
Distribution expansion
Target agriculture/landscaping in rural
Reinforce parts support and remanufacturing product offering
markets segment where heritage is strongest
NAFTA May 8, 2014 119
|
NAFTA
Agenda
1 Agricultural Equipment
2 Construction Equipment
3 CNH Industrial Initiatives
NAFTA May 8, 2014 120
|
NAFTA
Execute significant
new AG product
launches scheduled
within the planned period
Expand light CE
distribution through AG network
Lead CNH Industrial precision farming
technology offering
Increase AG share
position in cash crop and hay & forage
product segments
NAFTA
May 8, 2014 121
|
INVESTOR DAY
AUBURN HILLS
MAY 8TH, 2014
Manufacturing
Derek Neilson
|
Manufacturing
Agenda
1 Industrial Footprint
2 World Class Manufacturing
3 New Product Launch and Process Improvements
Manufacturing May 8, 2014 123
|
Manufacturing Locations
By Category
Vehicle Manufacturing Vertically Integrated
37 Vehicle Mfg
Assembly Only 6 62
MFG Plants
Component Mfg
Vertically Integrated 5
Engine Mfg
Vertically Integrated 7
Specialized Mfg
Manufacturing May 8, 2014 124
Vertically Integrated 7
|
Industrial Footprint 8
NAFTA EMEA
11 33 APAC 10
LATAM
Manufacturing May 8, 2014 125
388k Vehicles
62 Main Plants 1.3m Components 45.8k Employees
Note: figures as per YE 2013
|
Significant Manufacturing Investments Pune, India (2014) Investment - $90m
Start of Production: 2016
Combine Harvesters
Sugar Cane Harvesters Cotton Pickers
Rosslyn, South Africa (2013)
Investment - $50m
Start of Production: 2014
Medium and Heavy Trucks Buses
Harbin, China (2011)
Investment - $120m
Start of Production: 2014
High Horsepower Tractors
Combine Harvesters
Cordoba, Argentina (2011)
Investment - $90m
Start of Production: 2013
Manufacturing May 8, 2014 126
Corn Pickers
Square Balers
Combine Harvesters
Specialty Tractors
|
Manufacturing Greenfield Plants
New Plant in Harbin, China Investment $120 million
Products Tractors, Combine Harvesters,
New Plant in Pune, India
Investment: $90 million
Products: Harvesting Equipment
H&F Equipment
Area: 80K sqm covered (Phase 1)
Start of Production Q4 2014
Area: 40k sqm covered area (Phase 1)
Start of Production Q1 2016 Pune Harbin
Manufacturing May 8, 2014 127
|
Manufacturing Greenfield Plants
New Plant in Rosslyn, South Africa
Investment $50 million
Products: Trucks and Buses
New Plant in Cordoba, Argentina
Investment $90 million
Products Tractors, Combine Harvesters
Area: 50k sqm covered
Start of Production: Q3 2014 and Backhoe Loaders
Area: 29K sqm covered
Start of Production Q2 2013
Cordoba
Rosslyn
Manufacturing May 8, 2014 128
|
Manufacturing
Agenda
1 Industrial Footprint
New Product Launch and Process Improvements
2 World Class Manufacturing
3 Manufacturing May 8, 2014 129
|
World Class Manufacturing
A Structured System for Continuous Improvement
World Class Manufacturing principles WCM Objectives Targeting the highest standard of excellence across our plants
Structured system for continuous
improvement, utilizing the most effective manufacturing methodologies, including;
Total Quality Control (TQC)
Total Productive Maintenance (TPM)
Total Industrial Engineering (TIE)
Just In Time (JIT)
Aiming to eliminate all types of waste and losses in the manufacturing plants and
Manufacturing May 8, 2014 130
processes
|
World Class Manufacturing
Technical and Managerial Pillars
System of 10 Technical and 10 Managerial Pillars
Each Pillar using specific tools and methods required to eradicate the identified waste/losses
Structured seven-step approach and auditing process, aligning with progressive improvement through reactive, preventative and proactive phases
One of the main features of the program is the direct relationship between a project and its cost benefits
The cost deployment pillar prioritizes projects acting as a compass for the WCM program.
Manufacturing May 8, 2014 131
Common approach based on a language universally recognized in all CNH Industrial plants and locations
|
WCM - People and Plant Involvement
WCM Pillar Leaders
People Involvement WCM Central Staff 51 754
5,932 WCM Pillar Team Members
36,900 Manufacturing People Enrolment
Plant Involvement Plant Awards
43 45 51 55 56 62 6 7 12 1 2 18 20 4 4 8
100% Participation of CNH Industrial Plants +22 Awarded Plants
Manufacturing May 8, 2014 132
Start 2010 2010 2011 2012 2013 2014F
4 Start 2010 2010 2011 2012 2013 2014F
# of BRONZE Plants # of SILVER Plants # of GOLD Plants
|
WCM - Financial and Project Savings
$692 $871 25.0% 30.0% 750 900 Actual Savings % Actual Savings per Year
Actual Cumulative Financial Savings
$135 $289 $493 10.0% 15.0% 20.0% 300 450 600 Savings
6.7% Average Savings / Year
6.3% 5.9% 7.5% 7.4% 6.2% 0.0% 5.0% 0 150
2010 2011 2012 2013 2014F M$ WCM Projects 9,946 8,768 11,965 10,454 10,500
$13.6
$17.6 $17.0
$19.0
$17.1
Manufacturing May 8, 2014 133
2010 2011 2012 2013 2014F
#PROJECTS AVG Saving/project in $000s
|
WCM - 5 Year Strategic Plan 8
11 14 19 20 1 2 2 3 20 30 40
50 Plant Awards 3 Plants Achieving Gold
18 20 24 22 21 21 4 0 10
Start 2014 2014 2015 2016 2017 2018
+22 New Plant Awards
$1,642
WCM Cummulative Savings
# of BRONZE Plants # of SILVER Plants # of GOLD Plants
WCM Projects
$135
$950m Savings 2014 2018 10,500 10,600 11,200 11,700 11,900
$17.1 $16.0 $15.8 $15.3 $15.1
Manufacturing
2010 2018
May 8, 2014 134
2014 2015 2016 2017 2018
#PROJECTS AVG Saving/project in $000s
|
Plant Certifications
61 plants are ISO 9001 certified for quality management system
55 plants are ISO 14001 certified for environmental management system
53 plants are OHSAS 18001 certified for health and safety management system
34 plants are ISO 50001 certified for energy management system
Manufacturing May 8, 2014 135
|
Manufacturing
Agenda
1 Industrial Footprint
New 2 World Class Manufacturing
3 Product Launch and Process Improvements
Manufacturing May 8, 2014 136
|
New Product Launch and Process Improvements
Introduction of New Products into Manufacturing is key to improve efficiency by;
Implementation of Design For Manufacture (DFM) through efficient and focused Early Product
Management (EPM) WCM Projects
Process Re-layout and Re-organization to maximize efficiency by way of implementing Work Place
Organization (WO) and Logistics (LOG) WCM Projects
Strong collaboration with Key Suppliers to optimize Component Lead Times and Quality
Detailed analysis on Current Product Quality defects to ensure robust and effective solutions are
implemented at source with New Product introduction
Manufacturing May 8, 2014 137
|
INVESTOR DAY
AUBURN HILLS
MAY 8TH, 2014
Financial Services
CNH Industrial Capital
Oddone Incisa
|
Integrated and Diversified across Regions and Asset Classes
CNH Industrial Capital
Managed Portfolio $26.9 billion (YE 2013)
by Region
($ billion) 13.3
by Segment
NAFTA EMEA APAC
9% 69% 22% 8.2 1.1 49% 31% 4%
AG
CE
1.6 2.7
LATAM TRADE CV
More than Run as one business unit since 2013
10% 6%
Financial Services May 8, 2014 139
Common policies and practices across Regions
Multiple operating models
550k customers
and ~3,100 dealers served worldwide
1,330 employees
|
CNH Industrial Capital
Financing Products and Credit
MANAGED PORTFOLIO BY PRODUCT (2013)
Wholesale / Floorplan
29% Trade Finance 6% 37% penetration on CNH Industrial units sold in
2013 Insurance and Extended Warranty plans
Credit for Export (Trade Finance) Revolving Accounts 1%
Installment Financing 59%
COMMON AND CENTRALIZED CREDIT POLICIES Operating
Leasing 5%
GLOBAL CREDIT OFFICE
Global Credit Office with regional deployment
Common delegation of authority and credit policies
Centralized and regional credit monitoring
Focus on process standardization
Global Risk & Credit Office
Risk Analytics Credit Process Credit Administration Global Audit Operational Risk
Financial Services May 8, 2014 140
Regional Credit Offices
|
CNH Industrial Capital
Adaptive Business Models
FULLY OWNED CAPTIVES
Mature captive financial services organizations:
US, Canada, Brazil, Australia and Europe
Licensed banks where required by regulation:
All processes managed internally
Established and robust access to funding
Brazil, Europe
JOINT VENTURES
Large and well established JV in Europe for
Agricultural, Construction and - since 2014 -
Commercial Vehicles
CNH Industrial manages the sales and customer-facing processes, partner manages credit VENDOR PROGRAMS
Co e c a e ces
JV for Commercial Vehicles in Spain
Joint venture in Mexico within the Industrial JV process
Funding fully provided by partner
MANAGED PORTFOLIO BY OWNERSHIP DEC 2013
White-label agreements with banks
Option to evolve into JVs where size allows Off-Book
(JVs)$2.7B
10% On-Book
(fully owned
Financial Services May 8, 2014 141 captives)
$24.2B 90%
|
CNH Industrial Capital
Funding Profile
FUNDINGMIX % OF MANAGED PORTFOLIO NAFTA
Asset Backed Securities (ABS)
Largest equipment ABS issuer
Issuer since 1992
Unsecured bonds Over $2 billion issued since 2011
Dec 2013 Dec 2018 Equity
Affiliated 10% Debt Equity 9% Affiliated D bt 18%
SEC registrant
Bank supported funding facilities
EMEA
JV 18% ABS 39% 6% JV 10% Unsecured
ABS 16% Debt LATAM
Retail banking JV-partner
Wholesale securitizations and banks Unsecured 27%
47% Note: Managed portfolio includes receivables from non-consolidated joint ventures Diverse funding platforms Established access to funding: ABS, unsecured bonds, BNDES, deposits, securitizations
BNDES for retail Brazil Deposits and bonds for wholesale Brazil Banks in other countries
APAC
Financial Services May 8, 2014 142
$2.5 billion in equity, 10.3% capitalization of onbook assets
Australia ABS and banks
Rest of APAC banking partners
|
CNH Industrial Capital
Prepared for Growth
EMEA
NAFTA
High penetration and low delinquencies in Customer Financing JV with BNP Paribas Leasing Solutions Expanded JV to Iveco in 2014 Strong Retail Originations Record low delinquencies Growing unsecured funding Off-book funding Competitive rates Synergies across segments on Wholesale Financing, unifying platforms and funding vehicles
LATAM
#4 AG BNDES lender in Brazil
APAC
Australia, fully-owned Captive China exploring bank partnerships Started originating Iveco customer loans in 2014
Initiated public bond issuance in Brazil Established Finco in Argentina
China, India, launching a pan-Indian financial services partnership
Russia, existing Iveco captive and AG & CE vendor program
Financial Services May 8, 2014 143
|
CNH Industrial Capital
An Integrated Support Function
Integration Across Segments accomplished
Implemented global structure covering legacy CNH Capital and Iveco Capital organizations
One Global Credit Office organization with delegation of authority and credit policies
Extended European JV to Commercial Vehicles business
Originating Iveco receivables with Banco CNH Industrial Capital in Brazil
Fully integrated Trade Finance organization
Way Forward
Continuous focus on credit quality and process efficiency
Back office synergies
Funding diversification, increased access to unsecured debt, reduced recourse to affiliated debt
Target pre-tax of 20% on allocated equity
Financial Services May 8, 2014 144
|
Disclaimer Certain statements and information contained in this presentation that are not statements or information 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, intend, or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views, assumptions, expectations, and projections that, by their nature, become progressively more and more uncertain as they make reference to periods progressively distant in the future. These forward looking statements involve known and unknown
risks, uncertainties and other factors, many of which are outside the Companys 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 including, 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 Companys 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 Companys ability to obtain
financing or to refinance existing debt; a decline in the price of used vehicles; the resolution of pending litigation and investigations; the Companys relations with Kobelco Construction Machinery Co., Ltd and Sumitomo (S.H.I.) Construction Machinery Co., Ltd.; the Companys 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 Companys success in managing the risks involved in the foregoing. Further information concerning factors, risks, and uncertainties that could materially affect the Companys 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 information on risks, 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. Any of the assumptions underlying this presentation or any of the circumstances or data mentioned in this presentation may change. 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
presentation 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 Companys outlook is based upon assumptions relating to the factors described in this presentation , 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. The Company does not assume and expressly disclaims any liability in connection with any inaccuracies in any of these forward looking
statements or in connection with any use by any third party of such forward-looking statements. Further information concerning the Company and its businesses, including factors that potentially could materially affect the Companys financial results, is included in the Companys reports and filings with the U.S. SEC, the AFM, and CONSOB. This presentation does not represent investment advice neither a solicitation, nor a recommendation for the purchase or sale of financial products and/or of any kind
May 8, 2014 of financial services as contemplated by the laws in any country or state. Copyright and other intellectual property rights in the information contained in this presentation belong, except where otherwise expressly provided for, to CNH Industrial N.V. or
its subsidiaries.