CNH Industrial N.V 6-K, filed Feb 8, 2022
CNH Industrial N.V. (CNH)
About this 6-K
CNH Industrial N.V filed this 6-K on February 8, 2022.
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 February 2022
Commission File No. 001-36085
CNH INDUSTRIAL N.V.
(Translation of Registrant’s Name Into English)
25 St. James’s Street,
London, SW1A 1HA
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 ☒ 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): ☐
CNH INDUSTRIAL N.V.
Form 6-K for the month of February 2022
The following exhibits are furnished herewith:
| Exhibit 99.1 | Press release, dated February 8, 2022 titled: “CNH Industrial reports strong full year performance in 2021, the last year of operations prior to the demerger of Iveco Group effective January 1, 2022. Consolidated revenues of $33.4 billion (up 28% year on year), net income of $1,760 million, with adjusted diluted EPS of $1.35, and adjusted EBIT of Industrial Activities of $2,114 million the highest in Company history. Free cash flow of Industrial Activities positive $1,751 million.” | |
| Exhibit 99.2 | CNH Industrial N.V. Fourth Quarter and Full-Year 2021 Results Review Presentation | |
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: | Chief Legal and Compliance Officer | |
February 8, 2022
Index of Exhibits
| Exhibit Number |
Description of Exhibit | |
| Exhibit 99.1 | Press release, dated February 8, 2022 titled: “CNH Industrial reports strong full year performance in 2021, the last year of operations prior to the demerger of Iveco Group effective January 1, 2022. Consolidated revenues of $33.4 billion (up 28% year on year), net income of $1,760 million, with adjusted diluted EPS of $1.35, and adjusted EBIT of Industrial Activities of $2,114 million the highest in Company history. Free cash flow of Industrial Activities positive $1,751 million.” | |
| Exhibit 99.2 | CNH Industrial N.V. Fourth Quarter and Full-Year 2021 Results Review Presentation | |
Exhibit 99.1
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2021 FOURTH QUARTER AND FULL YEAR RESULTS |
PRESS RELEASE |
2021 FULL YEAR RESULTS - CNH INDUSTRIAL PRE-DEMERGER(1)
CNH Industrial reports strong full year performance in 2021, the last year of operations prior to the demerger of Iveco Group effective January 1, 2022. Consolidated revenues of $33.4 billion (up 28% year on year), net income of $1,760 million, with adjusted diluted EPS of $1.35, and adjusted EBIT of Industrial Activities of $2,114 million the highest in Company history. Free cash flow of Industrial Activities positive $1,751 million.
Financial results presented under U.S. GAAP
“I am proud of, and profusely thankful for, how our CNH Industrial team managed through a difficult year. Between external challenges: COVID, supply chain, etc. and internal opportunities: spin, Raven acquisition and integration, and our customer focused reorganization, they rose to every occasion while still exemplifying our renewed focus on delivering for our customers and dealers. Their efforts drove Company record revenue and earnings per share, and it is especially rewarding to generate such results in our final year as a combined entity. This performance represents a solid foundation for both Iveco Group and CNH Industrial’s future success, particularly as it includes our second consecutive year of net cash, with over $1.7 billion of positive free cash flow of Industrial Activities for 2021. In Q4 we outperformed expectations by managing our supply chain, specifically microchip shortages, better than anticipated, and while these pressures are likely to persist, so is our team’s demonstrated ability to overcome them. With continued strength in our end markets and order books, and a comprehensive strategy for the future, CNH Industrial is excited to enter 2022 as a pure play in agricultural and construction equipment.”
Scott W. Wine, Chief Executive Officer
CNH INDUSTRIAL PRE-DEMERGER
2021 Full Year Results
(all amounts $ million, unless otherwise stated – comparison vs FY 2020)
| US GAAP FY |
NON GAAP(2) FY |
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| Consolidated revenues |
33,428 | +28 | % | +26%c.c.(*) | Adjusted EBIT of Industrial Activities | 2,114 | +1,562 | |||||||||||||||||
| of which Net sales of Industrial Activities | 31,622 | +30 | % | +28%c.c. | Adjusted EBIT Margin of Industrial Activities | 6.7 | % | +440 | bps | |||||||||||||||
| Net income |
1,760 | +2,198 | Adjusted net income | 1,880 | +1,443 | |||||||||||||||||||
| Diluted EPS $ |
1.27 | +1.63 | Adjusted diluted EPS $ | 1.35 | +1.07 | |||||||||||||||||||
| Cash flow from operating activities |
4,082 | -1,447 | Free cash flow of Industrial Activities | 1,751 | -175 | |||||||||||||||||||
| Cash and cash equivalents |
6,006 | -2,779 | Available liquidity | 12,149 | -3,722 | |||||||||||||||||||
(*) c.c. means at constant currency
Extraordinary transactions
On November 30, 2021, CNH Industrial completed its acquisition of Raven Industries, Inc., (“Raven”) a U.S.-based leader in precision agriculture technology. Furthermore, on December 30, 2021, CNH Industrial completed the purchase of 90% of the capital stock of Sampierana S.p.A., a construction equipment company based in Italy. Financial information included in this press release reflects the consolidation, on a line-by-line basis, of the preliminary fair value of acquired assets and liabilities of both companies, with no material impacts on 2021 net income and free cash flow of Industrial Activities.
Until December 31, 2021, CNH Industrial N.V. owned and controlled the Commercial and Specialty Vehicles business, the Powertrain business, and the related Financial Services business (together the “Iveco Group Business” or the “On-Highway Business”), as well as the Agriculture business, the Construction business, and the related Financial Services business (collectively, the “Off-Highway Business”). Effective January 1, 2022, the Iveco Group Business was separated from CNH Industrial N.V. by way of a legal statutory demerger to Iveco Group N.V. (the Demerger) and Iveco Group became a public listed company independent from CNH Industrial. The financial information presented in the first section of this press release refers to CNH Industrial prior to the Demerger (the “CNH Industrial Pre-Demerger” business). To provide additional context to this transaction, a second section of this press release includes non-GAAP pro forma combined financial information referring to CNH Industrial as if the Demerger had happened in previous periods (the “CNH Industrial excluding Iveco Group”). The non-GAAP pro forma financial information presented in the second section of this press release has been prepared to represent the combined historical results of operations, financial position and cash flows of the Off-Highway Business that is now controlled by CNH Industrial N.V. following the Demerger. The non-GAAP pro forma combined financial information presented excludes the Iveco Group financial information for all periods presented in the “CNH Industrial excluding Iveco Group” section of this press release.
Net sales of Industrial Activities of $31,622 million, up 30% with increases in all segments due to continued strong industry demand and price realization.
Adjusted EBIT of Industrial Activities of $2,114 million ($552 million in 2020), with Agriculture adjusted EBIT of $1,810 million and adjusted EBIT margin of 12.3% in the year. Adjusted EBIT increased by $391 million for Commercial and Specialty Vehicles and $274 million for Construction. Powertrain adjusted EBIT of $256 million ($233 million in 2020).
Adjusted net income of $1,880 million, with adjusted diluted earnings per share of $1.35 (adjusted net income of $437 million and adjusted diluted earnings per share of $0.28 in 2020).
Reported income tax expense of $342 million, which includes a $161 million tax benefit related to recognizing certain deferred tax assets. Adjusted effective tax rate (adjusted ETR(2)) of 23%, which reflects a favorable geographic mix of pre-tax earnings.
Free cash flow of Industrial Activities was positive $1.8 billion due to the strong operating performance. Total Debt of $23.7 billion at December 31, 2021 ($26.1 billion at December 31, 2020).
Industrial Activities net cash(2) position at $0.3 billion, a decrease of $0.5 billion from December 31, 2020, primarily due to the cash-out for the acquisition of 100% interest in Raven ($2,246 million) and 90% interest in Sampierana ($86 million).
Available liquidity at $12.1 billion as of December 31, 2021.
CNH Industrial delivered strong performance in 2021 as a result of end-demand for its products rebounding from the first phase of the COVID- 19 pandemic, sustained soft commodity prices, and demand for fuel efficient transportation equipment.
Global supply chain represented the main challenge for our operations in the year, with multiple bottlenecks resulting in increased raw material prices, intermittent subcomponent availability, notably for semiconductors, and increased transportation costs.
Order book in Agriculture was up year over year for tractors and combines, with increases in all regions, and doubling for tractors in North America and Europe.
Construction order book more than doubled year over year in both Heavy and Light sub-segments, driven by strong increases for Heavy equipment in North America and Europe.
Truck order intake in Europe up 81% year over year, with light duty trucks up 76%, and medium & heavy duty trucks up 94%. Truck book-to-bill in Europe at 1.57.
Dividends
The Board of CNH Industrial N.V. intends to recommend to the Company’s shareholders an annual cash dividend of €0.28 per common share, totaling approximately €380 million (~$430 million). The proposed dividend remains subject to formal Board approval and the approval of shareholders at the Annual General Meeting (expected on April 13, 2022). If shareholders approve the annual dividend at the Annual General Meeting, it is anticipated that the record date for the dividend will be April 19, 2022, with an ex-dividend date of April 20, 2022.
| Refer to section “Notes” at page 5 for an explanation of the items referenced on this page and to page 12 onwards for the reconciliations | 1 |
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PRESS RELEASE |
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AGRICULTURE |
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In North America, tractor demand was up 10% for tractors under 140 HP and up 23% for tractors over 140 HP; combines were up 25%. In Europe, tractor and combine demand were up 16% and 17%, respectively. South America tractor demand was up 22% and combine demand was up 19%. In Rest of World, tractor demand increased 15% and combine demand increased 19%.
Net sales were up 33% at constant currency, mainly due to higher industry demand, better mix, favorable price realization of 7%, and lower destocking compared to 2020.
Adjusted EBIT was $1,810 million, with Adjusted EBIT margin at 12.3%. The $930 million increase was driven by higher volume, favorable mix and price realization in all regions, partially offset by higher raw material and freight costs, higher SG&A costs driven higher variable compensation, and R&D spend returning to more normal levels from the low levels experienced in the previous year. | ||||||||||||||||||||||
| FY 2021 | FY 2020 | Change | Change at c.c.(*) |
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| Net sales ($ million) | 14,721 | 10,823 | +34.8% | +33.0% | ||||||||||||||||||||
| Adjusted EBIT ($ million) | 1,810 | 880 | +930 | |||||||||||||||||||||
| Adjusted EBIT margin | 12.3% | 8.1% | +420 | bps | ||||||||||||||||||||
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CONSTRUCTION |
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Global demand for construction equipment was up 14% compared to 2020, with Heavy sub-segment up 16% and Light sub-segment up 13%. Demand increased 23% in North America, 19% in Europe, 87% in South America, and 6% in Rest of World.
Net sales were up 42%, driven by favorable price realization, higher demand, and lower destocking by dealers and distributors.
Adjusted EBIT increased $274 million due to positive price realization and favorable volume and mix, partially offset by higher product costs related to raw material and freight costs, and higher variable compensation. Adjusted EBIT margin at 2.9%. | ||||||||||||||||||||||
| FY 2021 | FY 2020 | Change | Change at c.c.(*) |
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| Net sales ($ million) | 3,081 | 2,170 | +42.0% | +40.9% | ||||||||||||||||||||
| Adjusted EBIT ($ million) | 90 | (184 | ) | +274 | ||||||||||||||||||||
| Adjusted EBIT margin | 2.9% | (8.5 | )% | +1,140 | bps | |||||||||||||||||||
| COMMERCIAL AND SPECIALTY VEHICLES |
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European truck market was up 11% year over year, with light-duty trucks (“LCV”) up 8%, and medium and heavy trucks (“M&H”) up 19%. South American truck market was up 28% in LCV and up 42% in M&H. Order book is strong across all regions. Bus registrations decreased 1% in Europe and increased 4% in South America.
Net sales were up 26% at constant currency, primarily driven by higher truck volumes and positive price realization.
Adjusted EBIT was $282 million, with Adjusted EBIT margin at 2.3%. The $391 million increase was driven by higher volumes and positive price realization, partially offset by increased raw material costs, freight costs, and rework costs due to components shortages. SG&A costs increase was driven by higher variable compensation, while R&D spend returned to more normal levels from the lows of the prior year. | |||||||||||||||||||||
| FY 2021 | FY 2020 | Change | Change at c.c.(*) |
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| Net sales ($ million) | 12,160 | 9,421 | +29.1% | +25.8% | ||||||||||||||||||||
| Adjusted EBIT ($ million) | 282 | (109 | ) | +391 | ||||||||||||||||||||
| Adjusted EBIT margin | 2.3% | (1.2 | )% | +350 | bps | |||||||||||||||||||
|
POWERTRAIN |
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Net sales were up 18% at constant currency mainly due to higher volumes. Sales to external customers accounted for 41% (52% in 2020).
Adjusted EBIT was $256 million, with an increase of $23 million compared to prior year, mainly due to favorable volume and mix in H1, almost offset by unfavorable raw material costs, higher freight costs due to logistics constraints, higher SG&A costs and R&D spend returned to a pre-pandemic level, as well as lower absorption of fixed cost in the second half of the year, due to certain third- party sales discontinuation. Adjusted EBIT margin at 5.8%. | ||||||||||||||||||||||
| FY 2021 | FY 2020 | Change | Change at c.c.(*) |
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| Net sales ($ million) | 4,419 | 3,629 | +21.8% | +17.8% | ||||||||||||||||||||
| Adjusted EBIT ($ million) | 256 | 233 | +23 | |||||||||||||||||||||
| Adjusted EBIT margin | 5.8% | 6.4% | -60 | bps | ||||||||||||||||||||
| FINANCIAL SERVICES |
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Revenues were up $47 million due to higher used equipment sales and higher average portfolios in Europe, South America and Rest of World, partially offset by lower average portfolio in North America due to a reduction in wholesale financing. Retail loan and lease originations were up 14.5% reflecting higher Industrial Activities sales.
Net income increased $171 million to $420 million, primarily due to lower risks cost due to improved market outlook, improved pricing in North America, higher recoveries on used equipment sales, and higher average portfolio.
The managed portfolio (including unconsolidated joint ventures) was $26.7 billion at the end of the year, relatively flat compared to December 31, 2020 (up $1.2 billion on a constant currency basis). The receivable balance greater than 30 days past due as a percentage of receivables was 1.7% (2.1% as of December 31, 2020). | ||||||||||||||||||||||
| FY 2021 | FY 2020 | Change | Change at c.c.(*) |
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| Revenues ($ million) | 1,870 | 1,823 | +2.6% | +1.5% | ||||||||||||||||||||
| Net income ($ million) | 420 | 249 | +171 | |||||||||||||||||||||
| Equity at year-end ($ million) |
2,954 | 2,931 | +23 | |||||||||||||||||||||
| Retail loan originations ($ million) |
11,440 | 9,995 | +14.5% | |||||||||||||||||||||
| Refer to section “Notes” at page 5 for an explanation of the items referenced on this page and to page 12 onwards for the reconciliations | 2 |
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PRESS RELEASE |
2021 FOURTH QUARTER RESULTS - CNH INDUSTRIAL PRE-DEMERGER(1)
In Q4 2021, CNH Industrial reported consolidated revenues of $9.1 billion (up 7% compared to Q4 2020), net income of $307 million, adjusted diluted EPS of $0.25, and adjusted EBIT of Industrial Activities of $401 million (down $119 million). Free cash flow of Industrial Activities positive $1.8 billion.
CNH INDUSTRIAL PRE-DEMERGER
2021 Fourth Quarter Results
(all amounts $ million, unless otherwise stated – comparison vs Q4 2020)
|
US GAAP Q4 |
NON GAAP(2) Q4 |
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| Consolidated revenues |
9,072 | +7 | % | +9% c.c.(*) | Adjusted EBIT of Industrial Activities | 401 | -119 | |||||||||||||||||
| of which Net sales of Industrial Activities |
8,552 | +6 | % | +9% c.c. | Adjusted EBIT Margin of Industrial Activities | 4.7 | % | -180 | bps | |||||||||||||||
| Net income |
307 | +120 | Adjusted net income | 347 | -85 | |||||||||||||||||||
| Diluted EPS $ |
0.22 | +0.10 | Adjusted diluted EPS $ | 0.25 | -0.05 | |||||||||||||||||||
| Cash flows from operating activities |
2,190 | -576 | Free cash flow of Industrial Activities | 1,842 | -523 | |||||||||||||||||||
| Cash and cash equivalents |
6,006 | -1,143 | (**) | Available liquidity | 12,149 | -1,327 | (**) | |||||||||||||||||
(*) c.c. means at constant currency (**) comparison vs September 30, 2021
| AGRICULTURE | ||||||||||||||||||||
| Q4 2021 | Q4 2020 | Change | Change at c.c.(*) |
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| Net sales ($ million) | 4,150 | 3,425 | +21.2% | +22.7% | ||||||||||||||||
| Adjusted EBIT ($ million) | 414 | 379 | +35 | |||||||||||||||||
| Adjusted EBIT margin | 10.0% | 11.1% | -110 | bps | ||||||||||||||||
| CONSTRUCTION |
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| Q4 2021 | Q4 2020 | Change | Change at c.c.(*) |
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| Net sales ($ million) | 844 | 752 | 12.2% | +13.2% | ||||||||||||||||
| Adjusted EBIT ($ million) | 20 | 10 | +10 | |||||||||||||||||
| Adjusted EBIT margin | 2.4% | 1.3% | +110 | bps | ||||||||||||||||
| COMMERCIAL AND SPECIALTY VEHICLES |
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| Q4 2021 | Q4 2020 | Change | Change at c.c.(*) |
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| Net sales ($ million) | 3,256 | 3,290 | -1.0% | +2.4 | % | |||||||||||||||
| Adjusted EBIT ($ million) | 55 | 110 | -55 | |||||||||||||||||
| Adjusted EBIT margin | 1.7% | 3.3% | -160 | bps | ||||||||||||||||
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POWERTRAIN |
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| Q4 2021 | Q4 2020 | Change | Change at c.c.(*) |
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| Net sales ($ million) | 945 | 1,204 | -21.5% | -17.8 | % | |||||||||||||||
| Adjusted EBIT ($ million) | 23 | 110 | -87 | |||||||||||||||||
| Adjusted EBIT margin | 2.4% | 9.1% | -670 | bps | ||||||||||||||||
| FINANCIAL SERVICES |
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| Q4 2021 | Q4 2020 | Change | Change at c.c.(*) |
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| Revenues ($ million) | 533 | 485 | +9.9% | +10.4% | ||||||||||||||||
| Net income ($ million) | 112 | 60 | +52 | |||||||||||||||||
Net sales of Industrial Activities of $8,552 million, up 6%. Agriculture’s net sales increased 21% due to higher industry demand and favorable price realization. Construction’s net sales were up 12% as a result of favorable price realization, higher demand, and lower destocking by dealers and distributors. Commercial and Specialty Vehicles’ net sales decreased 1%, due to unfavorable currency translation, but grew 2.4% at constant currency. Powertrain’s net sales were down 22% (down 18% at constant currency) due to lower deliveries to external customers. Sales in all segments were constrained by manufacturing output which was in turn severely affected by component availability.
Adjusted EBIT of Industrial Activities of $401 million ($520 million in Q4 2020), with adjusted EBIT margin of Industrial Activities at 4.7%. Agriculture adjusted EBIT increased $35 million, Adjusted EBIT margin decreased 110 bps to 10% due to unfavorable mix and higher raw material and freight cost offsetting price realization, as well as higher SG&A expenses and R&D spend. Construction adjusted EBIT increased $10 million due to positive price realization, and favorable volume and mix, partially offset by higher raw material and freight costs. Adjusted EBIT decreased $55 million for Commercial and Specialty Vehicles, driven by higher raw material costs, as well as higher freight, rework costs due to component shortages, and R&D spending. Powertrain adjusted EBIT decreased $87 million, mainly due to unfavorable volume and mix, higher raw material costs, and higher freight costs due to logistics constraints.
Adjusted net income of $347 million, with adjusted diluted earnings per share of $0.25 (adjusted net income of $432 million in 2020, with adjusted diluted earnings per share of $0.30).
Free cash flow of Industrial Activities was positive $1.8 billion due to seasonal reduction in working capital and positive operating performance.
| Refer to section “Notes” at page 5 for an explanation of the items referenced on this page and to page 12 onwards for the reconciliations | 3 |
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PRESS RELEASE |
2021 FULL YEAR PRO FORMA COMBINED RESULTS - CNH INDUSTRIAL EXCLUDING IVECO GROUP(3)
In 2021, CNH Industrial excluding Iveco Group non-GAAP pro forma combined consolidated revenues of $19.5 billion (up 32% compared to 2020), net income of $1,801 million, adjusted diluted EPS of $1.28 ($0.42 in 2020), and adjusted EBIT of Industrial Activities of $1,763 million (up $1,180 million). Free cash flow of Industrial Activities positive $1.9 billion.
CNH INDUSTRIAL EXCLUDING IVECO GROUP
Unaudited 2021 Full Year Non-GAAP Pro Forma Combined Results
(all amounts $ million, unless otherwise stated – comparison vs FY 2020)
|
Pro Forma Combined (under US GAAP) |
NON GAAP(2) | |||||||||||||||||||||||
| Consolidated revenues |
19,496 | +32 | % | +30%c.c.(*) | Adjusted EBIT of Industrial Activities | 1,763 | +1,180 | |||||||||||||||||
| of which Net sales of Industrial Activities |
17,802 | +36 | % | +34%c.c. | Adjusted EBIT Margin of Industrial Activities | 9.9 | % | +540 | bps | |||||||||||||||
| Net income |
1,801 | +1,999 | Adjusted net income | 1,747 | +1,161 | |||||||||||||||||||
| Diluted EPS $ |
1.32 | +1.48 | Adjusted diluted EPS $ | 1.28 | +0.86 | |||||||||||||||||||
| Cash flows from operating activities |
3,198 | -991 | Free cash flow of Industrial Activities | 1,928 | -160 | |||||||||||||||||||
| Cash and cash equivalents |
5,044 | -3,155 | Available liquidity | 10,521 | -3,363 | |||||||||||||||||||
(*) c.c. means at constant currency
Net sales of Industrial Activities of $17,802 million, up 36.1% due to strong industry demand, price realization, and lower destocking by dealers and distributors.
Adjusted EBIT of Industrial Activities of $1,763 million ($583 million in 2020), with Agriculture adjusted EBIT of $1,810 million and adjusted EBIT margin of 12.3%. Adjusted EBIT increased by $274 million for Construction. Adjusted EBIT margin of Industrial Activities at 9.9% of net sales.
Adjusted net income of $1,747 million, with adjusted diluted earnings per share of $1.28 (adjusted net income of $586 million in 2020, with adjusted diluted earnings per share of $0.42).
Free cash flow of Industrial Activities was positive $1.9 billion due to the strong operating performance and stable working capital. Total third-party Debt of $20.9 billion at December 31, 2021 ($22.9 billion at December 31, 2020). Industrial Activities net debt(2) position at $1.1 billion ($0.9 billion at December 31, 2020), primarily due to the cash-out for the acquisition of 100% interest in Raven and related transaction costs ($2,246 million) and the acquisition of 90% interest in Sampierana ($86 million).
Available liquidity at $10.5 billion as of December 31, 2021.
Ratings update
On January 4, 2022 Fitch Ratings raised its Long-Term Issuer Default Rating on CNH Industrial N.V. to ‘BBB+’ from ‘BBB-’. Fitch also upgraded CNH Industrial Finance Europe S.A.’s senior unsecured rating to ‘BBB+’ from ‘BBB-’. The Outlook is Stable. On January 7, 2022 Fitch has upgraded the Long-Term Issuer Default Ratings and senior unsecured debt ratings of CNH Industrial Capital LLC (CNHI Capital) and CNH Industrial Capital Canada Ltd. (CNH Canada) to ‘BBB+’ from ‘BBB-’. The Rating Outlook is Stable. Fitch has also upgraded CNHI Capital’s Short-Term IDR and commercial paper (CP) ratings to ‘F2’ from ‘F3’.
2022 Outlook
The Company is providing the following 2022 outlook for its Industrial Activities:
| • | Net sales(**) to grow 10% to 14% including currency translation effects |
| • | SG&A expenses lower or equal to 7.5% of net sales |
| • | Free Cash Flow in excess of $1 billion |
| • | R&D expenses and Capital expenditures up at around $1.4 billion from around $1.0 billion in 2021. |
| Refer to section “Notes” at page 5 for an explanation of the items referenced on this page and to page 12 onwards for the reconciliations |
4 |
(**) Net sales reflecting the exchange rate of 1.20 EUR/USD
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PRESS RELEASE |
| Notes | |
CNH Industrial reports quarterly and annual consolidated financial results under U.S. GAAP and EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with U.S. GAAP. Financial results under EU-IFRS are shown in specific tables at the end of this press release.
| (1) | Until December 31, 2021, CNH Industrial N.V. owned and controlled the Commercial and Specialty Vehicles business, the Powertrain business and the related Financial Services business (together the “Iveco Group Business” or the “On-Highway Business”), as well as the Agriculture business, the Construction business and the related Financial Services business (collectively, the “Off-Highway Business”). Effective January 1, 2022, the Iveco Group Business was separated from CNH Industrial N.V. in accordance with Section 2:334a (3) of the Dutch Civil Code (Burgerlijk Wetboek) by way of a legal statutory demerger (juridische afsplitsing) to Iveco Group N.V. (the “Demerger”). The financial information presented in this section refers to the CNH Industrial prior to the Demerger (the “CNH Industrial Pre-Demerger”). |
| (2) | This item is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Information” section of this press release for information regarding non-GAAP financial measures. Refer to the specific table in the “Other Supplemental Financial Information” section of this press release for the reconciliation between the non-GAAP financial measure and the most comparable GAAP financial measure. |
| (3) | The unaudited pro forma combined financial information presented in this section refers to the CNH Industrial as if the Demerger had happened in previous periods (the “CNH Industrial excluding Iveco Group”). This pro forma financial information has been prepared to represent the combined historical results of operations, financial position and cash flows of the Off-Highway Business that is now controlled by CNH Industrial N.V. following the Demerger. The pro forma combined financial information presented excludes the Iveco Group financial information for all periods presented. As a consequence, this financial information is considered a non-GAAP financial information. This financial information has been derived from the consolidated financial statements and accounting records of CNH Industrial N.V. This pro forma financial information (1) is presented based on information currently available, (2) is intended for informational purposes, only, (3) is not necessarily indicative of and do not purport to represent what the CNH Industrial excluding Iveco Group operating results would have been had the Demerger occurred as described or what the future operating results will be after giving effect to the Demerger and (4) does not reflect any actions that might be taken by management after the Demerger. |
| (*) | c.c. means at constant currency. |
Non-GAAP Financial Information
CNH Industrial monitors its operations through the use of several non-GAAP financial measures. CNH Industrial’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH Industrial’s financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP or EU-IFRS and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP and/or EU-IFRS.
CNH Industrial’s non-GAAP financial measures are defined as follows:
| • | Adjusted EBIT of Industrial Activities under U.S. GAAP: is defined as net income (loss) before income taxes, Financial Services’ results, Industrial Activities’ interest expenses, net, foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, and certain non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities. |
| • | Adjusted EBIT of Industrial Activities under EU-IFRS: is defined as profit/(loss) before taxes, Financial Services’ results, Industrial Activities’ financial expenses, restructuring costs, and certain non-recurring items. |
| • | Adjusted Net Income (Loss): is defined as net income (loss), less restructuring charges and non-recurring items, after tax. |
| • | Adjusted Diluted EPS: is computed by dividing Adjusted Net Income (loss) attributable to CNH Industrial N.V. by a weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the CNH Industrial share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end. |
| • | Adjusted Income Taxes: is defined as income taxes less the tax effect of restructuring expenses and non-recurring items, and non-recurring tax charges or benefits. |
| • | Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing a) adjusted income taxes by b) income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates, less restructuring expenses and non-recurring items. |
| • | Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and derivative hedging debt. CNH Industrial provides the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable measure included in the consolidated balance sheets. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities. |
| • | Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities, only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under buy-back commitments, assets under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations. |
| • | Available Liquidity: is defined as cash and cash equivalents plus restricted cash, undrawn medium-term unsecured committed facilities and other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties). |
| • | Change excl. FX or Constant Currency: CNH Industrial discusses the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current year’s revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations. |
| • | Unaudited Pro Forma Combined Financial Information: refers to the CNH Industrial as if the Demerger had happened in previous periods. It represents the combined historical results of operations, financial position and cash flows of the Off-Highway Business that is now controlled by CNH Industrial N.V. following the Demerger. It excludes the Iveco Group financial information for all periods presented and has been derived from the consolidated financial statements and accounting records of CNH Industrial N.V. |
The tables attached to this press release provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.
| 5 |
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|
PRESS RELEASE |
Forward-looking statements
All statements other than statements of historical fact contained in this earning release, including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. Forward looking statements also include statements regarding the future performance of CNH Industrial and its subsidiaries on a standalone basis. These statements may include terminology such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “outlook”, “continue”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “prospects”, “plan”, or similar terminology. Forward-looking statements, including those related to the COVID-19 pandemic, are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: the continued uncertainties related to the unknown duration and economic, operational and financial impacts of the global COVID-19 pandemic and the actions taken or contemplated by governmental authorities or others in connection with the pandemic on our business, our employees, customers and suppliers; supply chain disruptions, including delays caused by mandated shutdowns, industry capacity constraints, material availability, and global logistics delays and constraints; disruption caused by business responses to COVID-19, including remote working arrangements, which may create increased vulnerability to cybersecurity or data privacy incidents; our ability to execute business continuity plans as a result of COVID-19; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products, including demand uncertainty caused by COVID-19; general economic conditions in each of our markets, including the significant economic uncertainty and volatility caused by COVID-19; travel bans, border closures, other free movement restrictions, and the introduction of social distancing measures in our facilities may affect in the future our ability to operate as well as the ability of our suppliers and distributors to operate; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities; housing starts and other construction activity; our ability to obtain financing or to refinance existing debt; price pressure on new and used vehicles; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, follow-on private litigation in various jurisdictions after the settlement of the EU antitrust investigation of the Iveco Group announced on July 19, 2016, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH Industrial and its suppliers and dealers; security breaches with respect to our products; our pension plans and other post-employment obligations; further developments of the COVID-19 pandemic on our operations, supply chains, distribution network, as well as negative evolutions of the economic and financial conditions at global and regional levels; political and civil unrest; volatility and deterioration of capital and financial markets, including other pandemics, terrorist attacks in Europe and elsewhere; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing.
Forward-looking statements are based upon assumptions relating to the factors described in this earnings release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside CNH Industrial’s control. CNH Industrial expressly disclaims any intention or obligation to provide, update or revise any forward-looking statements in this announcement to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Further information concerning CNH Industrial, including factors that potentially could materially affect CNH Industrial’s financial results, is included in CNH Industrial’s reports and filings with the U.S. Securities and Exchange Commission (“SEC”), the Autoriteit Financiële Markten (“AFM”) and Commissione Nazionale per le Società e la Borsa (“CONSOB”).
| Conference | Call and Webcast |
Today, at 3:00 p.m. CET / 2:00 p.m. GMT/ 9:00 a.m. EST, management will hold a conference call to present fourth quarter and full year 2021 results to financial analysts and institutional investors. The call can be followed live online at https://bit.ly/CNH_Industrial_Q4FY_2021 and a recording will be available later on the Company’s website www.cnhindustrial.com. A presentation will be made available on the CNH Industrial website prior to the call.
| London, | February 8, 2022 |
| 6 |
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PRESS RELEASE |
| CONTACTS | |
Media Inquiries
United Kingdom
Laura Overall
Tel: +44 207 925 1964
Anna Angelini
Tel: +44 7725 826 007
E-mail: mediarelations@cnhind.com
www.cnhindustrial.com
Investor Relations
United States
Noah Weiss
Tel: +1 630 887 3745
| 7 |
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|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Condensed Consolidated Statements of Operations for the three months and years ended December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
|
|
|
|
|
|||||||||||||
| ($ million) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Revenues |
||||||||||||||||
| Net sales |
8,552 | 8,035 | 31,622 | 24,285 | ||||||||||||
| Finance, interest and other income |
520 | 466 | 1,806 | 1,747 | ||||||||||||
| TOTAL REVENUES |
9,072 | 8,501 | 33,428 | 26,032 | ||||||||||||
| Costs and Expenses |
||||||||||||||||
| Cost of goods sold |
7,116 | 6,621 | 25,951 | 21,327 | ||||||||||||
| Selling, general and administrative expenses |
721 | 644 | 2,443 | 2,155 | ||||||||||||
| Research and development expenses |
354 | 289 | 1,236 | 932 | ||||||||||||
| Restructuring expenses |
42 | 30 | 74 | 49 | ||||||||||||
| Interest expense |
145 | 166 | 596 | 678 | ||||||||||||
| Goodwill impairment charge |
- | - | - | 585 | ||||||||||||
| Other, net(1) |
498 | 521 | 1,148 | 811 | ||||||||||||
| TOTAL COSTS AND EXPENSES |
8,876 | 8,271 | 31,448 | 26,537 | ||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
196 | 230 | 1,980 | (505 | ) | |||||||||||
| Income tax (expense) benefit |
82 | (28 | ) | (342 | ) | 50 | ||||||||||
| Equity in income (loss) of unconsolidated subsidiaries and affiliates |
29 | (15 | ) | 122 | 17 | |||||||||||
| NET INCOME (LOSS) |
307 | 187 | 1,760 | (438 | ) | |||||||||||
| Net income attributable to noncontrolling interests |
5 | 23 | 37 | 55 | ||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO CNH INDUSTRIAL N.V. |
302 | 164 | 1,723 | (493 | ) | |||||||||||
| (in $) | ||||||||||||||||
| Earnings (loss) per share attributable to common shareholders |
||||||||||||||||
| Basic |
0.22 | 0.12 | 1.27 | (0.36 | ) | |||||||||||
| Diluted |
0.22 | 0.12 | 1.27 | (0.36 | ) | |||||||||||
| Cash dividends declared per common share |
- | - | 0.132 | - | ||||||||||||
Notes:
| (1) | In the three months and the year ended December 31, 2021, Other, net includes a pre-tax loss of $20 million and $138 million, respectively, from the remeasurement at fair value of the investment in Nikola Corporation (pre-tax loss of $134 million and pre-tax gain of $134 million, respectively, in the three months and year ended December 31, 2020), separation and transaction costs of $148 million and $187 million, respectively, incurred in connection with the spin-off of the Iveco Group Business (the Demerger), and a charge of $51 million and $57 million, respectively, for transaction costs related to the acquisition of Raven Industries, Inc., as well as a gain of $12 million for a fair value adjustment of Monarch Tractor investment and a loss of $25 million due to the valuation at their recoverable amount of certain assets classified as held for sale. In the year ended December 31, 2021, Other, net also includes the pre- and after-tax gain of $42 million from the sale of the 30.1% interest in Naveco. |
| 8 |
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|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Condensed Consolidated Balance Sheets as of December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| ($ million) | December 31, 2021 | December 31, 2020 | ||||||
| ASSETS |
||||||||
| Cash and cash equivalents |
6,006 | 8,785 | ||||||
| Restricted cash |
856 | 844 | ||||||
| Financing receivables, net |
18,662 | 18,457 | ||||||
| Inventories, net |
7,221 | 6,022 | ||||||
| Property, plant and equipment, net and Equipment under operating leases |
6,499 | 6,901 | ||||||
| Intangible assets, net |
4,639 | 2,696 | ||||||
| Other receivables and assets |
5,533 | 5,014 | ||||||
| TOTAL ASSETS |
49,416 | 48,719 | ||||||
| LIABILITIES AND EQUITY |
||||||||
| Debt |
23,745 | 26,053 | ||||||
| Other payables and liabilities |
18,818 | 17,637 | ||||||
| Total Liabilities |
42,563 | 43,690 | ||||||
| Redeemable noncontrolling interest |
45 | 40 | ||||||
| Equity |
6,808 | 4,989 | ||||||
| TOTAL LIABILITIES AND EQUITY |
49,416 | 48,719 | ||||||
CNH INDUSTRIAL PRE-DEMERGER
Condensed Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| ($ million) | 2021 | 2020 | ||||||
| Net income (loss) |
1,760 | (438 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
2,322 | 5,967 | ||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
4,082 | 5,529 | ||||||
| NET CASH USED IN INVESTING ACTIVITIES |
(5,001 | ) | (2,750 | ) | ||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
(1,445 | ) | 659 | |||||
| Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash |
(403 | ) | 418 | |||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
(2,767 | ) | 3,856 | |||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR |
9,629 | 5,773 | ||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR |
6,862 | 9,629 | ||||||
| 9 |
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|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Supplemental Statements of Operations for the three months ended December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| ($ million) | Three Months Ended December 31, 2021 |
Three Months Ended December 31, 2020 |
||||||||||||||||||||||||||||||||||
| |
Industrial Activities |
(1) |
|
Financial Services |
|
Eliminations | Consolidated | |
Industrial Activities |
(1) |
|
Financial Services |
|
Eliminations | Consolidated | |||||||||||||||||||||
| Revenues |
||||||||||||||||||||||||||||||||||||
| Net sales |
8,552 | - | - | 8,552 | 8,035 | - | - | 8,035 | ||||||||||||||||||||||||||||
| Finance, interest and other income |
20 | 533 | (33 | ) (2) | 520 | 18 | 485 | (37 | ) (2) | 466 | ||||||||||||||||||||||||||
| TOTAL REVENUES |
8,572 | 533 | (33 | ) | 9,072 | 8,053 | 485 | (37 | ) | 8,501 | ||||||||||||||||||||||||||
| Costs and Expenses |
||||||||||||||||||||||||||||||||||||
| Cost of goods sold |
7,116 | - | - | 7,116 | 6,621 | - | - | 6,621 | ||||||||||||||||||||||||||||
| Selling, general and administrative expenses |
656 | 65 | - | 721 | 560 | 84 | - | 644 | ||||||||||||||||||||||||||||
| Research and development expenses |
354 | - | - | 354 | 289 | - | - | 289 | ||||||||||||||||||||||||||||
| Restructuring expenses |
42 | - | - | 42 | 30 | - | - | 30 | ||||||||||||||||||||||||||||
| Interest expense |
75 | 103 | (33 | ) (3) | 145 | 81 | 122 | (37 | ) (3) | 166 | ||||||||||||||||||||||||||
| Other, net |
257 | 241 | - | 498 | 303 | 218 | - | 521 | ||||||||||||||||||||||||||||
| TOTAL COSTS AND EXPENSES | 8,500 | 409 | (33 | ) | 8,876 | 7,884 | 424 | (37 | ) | 8,271 | ||||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
72 | 124 | - | 196 | 169 | 61 | - | 230 | ||||||||||||||||||||||||||||
| Income tax (expense) benefit |
105 | (23 | ) | - | 82 | (19 | ) | (9 | ) | - | (28 | ) | ||||||||||||||||||||||||
| Equity in income (loss) of unconsolidated subsidiaries and affiliates |
18 | 11 | - | 29 | (23 | ) | 8 | - | (15 | ) | ||||||||||||||||||||||||||
| NET INCOME |
195 | 112 | - | 307 | 127 | 60 | - | 187 | ||||||||||||||||||||||||||||
Notes:
| (1) | Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services. |
| (2) | Elimination of Financial Services’ interest income earned from Industrial Activities. |
| (3) | Elimination of Industrial Activities’ interest expense to Financial Services. |
CNH INDUSTRIAL PRE-DEMERGER
Supplemental Statements of Operations for the years ended December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| ($ million) | Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
| Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | |||||||||||||||||||||||||||||
| Revenues |
||||||||||||||||||||||||||||||||||||
| Net sales |
31,622 | - | - | 31,622 | 24,285 | - | - | 24,285 | ||||||||||||||||||||||||||||
| Finance, interest and other income |
70 | 1,870 | (134 | ) (2) | 1,806 | 61 | 1,823 | (137 | ) (2) | 1,747 | ||||||||||||||||||||||||||
| TOTAL REVENUES |
31,692 | 1,870 | (134 | ) | 33,428 | 24,346 | 1,823 | (137 | ) | 26,032 | ||||||||||||||||||||||||||
| Costs and Expenses |
||||||||||||||||||||||||||||||||||||
| Cost of goods sold |
25,951 | - | 25,951 | 21,327 | - | - | 21,327 | |||||||||||||||||||||||||||||
| Selling, general and administrative expenses |
2,240 | 203 | - | 2,443 | 1,849 | 306 | - | 2,155 | ||||||||||||||||||||||||||||
| Research and development expenses |
1,236 | - | - | 1,236 | 932 | - | - | 932 | ||||||||||||||||||||||||||||
| Restructuring expenses |
74 | - | - | 74 | 49 | - | - | 49 | ||||||||||||||||||||||||||||
| Interest expense |
305 | 425 | (134 | ) (3) | 596 | 305 | 510 | (137 | ) (3) | 678 | ||||||||||||||||||||||||||
| Goodwill impairment charge |
- | - | - | - | 585 | - | - | 585 | ||||||||||||||||||||||||||||
| Other, net |
420 | 728 | - | 1,148 | 108 | 703 | - | 811 | ||||||||||||||||||||||||||||
| TOTAL COSTS AND EXPENSES | 30,226 | 1,356 | (134 | ) | 31,448 | 25,155 | 1,519 | (137 | ) | 26,537 | ||||||||||||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES | 1,466 | 514 | - | 1,980 | (809 | ) | 304 | - | (505 | ) | ||||||||||||||||||||||||||
| Income tax (expense) benefit |
(217 | ) | (125 | ) | - | (342 | ) | 133 | (83 | ) | - | 50 | ||||||||||||||||||||||||
| Equity in income (loss) of unconsolidated subsidiaries and affiliates |
91 | 31 | - | 122 | (11 | ) | 28 | - | 17 | |||||||||||||||||||||||||||
| NET INCOME (LOSS) |
1,340 | 420 | - | 1,760 | (687 | ) | 249 | - | (438 | ) | ||||||||||||||||||||||||||
Notes:
| (1) | Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services. |
| (2) | Elimination of Financial Services’ interest income earned from Industrial Activities. |
| (3) | Elimination of Industrial Activities’ interest expense to Financial Services. |
| 10 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Supplemental Balance Sheets as of December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
| ($ million) | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | ||||||||||||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents |
5,190 | 816 | - | 6,006 | 8,017 | 768 | - | 8,785 | ||||||||||||||||||||||||||||
| Restricted cash |
146 | 710 | - | 856 | 99 | 745 | - | 844 | ||||||||||||||||||||||||||||
| Financing receivables, net |
1,104 | 19,411 | (1,853 | ) (2) | 18,662 | 902 | 19,428 | (1,873 | ) (2) | 18,457 | ||||||||||||||||||||||||||
| Inventories, net |
7,190 | 31 | - | 7,221 | 5,981 | 41 | - | 6,022 | ||||||||||||||||||||||||||||
| Property, plant and equipment, net and Equipment under operating leases |
4,752 | 1,747 | - | 6,499 | 4,987 | 1,914 | - | 6,901 | ||||||||||||||||||||||||||||
| Intangible assets, net |
4,461 | 178 | - | 4,639 | 2,522 | 174 | - | 2,696 | ||||||||||||||||||||||||||||
| Other receivables and assets |
5,052 | 738 | (257 | ) (3) | 5,533 | 4,600 | 733 | (319 | ) (3) | 5,014 | ||||||||||||||||||||||||||
| TOTAL ASSETS |
27,895 | 23,631 | (2,110 | ) | 49,416 | 27,108 | 23,803 | (2,192 | ) | 48,719 | ||||||||||||||||||||||||||
| LIABILITIES AND EQUITY |
||||||||||||||||||||||||||||||||||||
| Debt |
6,163 | 19,435 | (1,853 | ) (2) | 23,745 | 8,288 | 19,638 | (1,873 | ) (2) | 26,053 | ||||||||||||||||||||||||||
| Other payables and liabilities |
17,833 | 1,242 | (257 | ) (3) | 18,818 | 16,722 | 1,234 | (319 | ) (3) | 17,637 | ||||||||||||||||||||||||||
| Total Liabilities |
23,996 | 20,677 | (2,110 | ) | 42,563 | 25,010 | 20,872 | (2,192 | ) | 43,690 | ||||||||||||||||||||||||||
| Redeemable noncontrolling interest |
45 | - | - | 45 | 40 | - | - | 40 | ||||||||||||||||||||||||||||
| Equity |
3,854 | 2,954 | - | 6,808 | 2,058 | 2,931 | - | 4,989 | ||||||||||||||||||||||||||||
| TOTAL LIABILITIES AND EQUITY |
27,895 | 23,631 | (2,110 | ) | 49,416 | 27,108 | 23,803 | (2,192 | ) | 48,719 | ||||||||||||||||||||||||||
Notes:
| (1) | Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services. |
| (2) | This item includes the elimination of receivables/payables between Industrial Activities and Financial Services. |
| (3) | This item primarily represents the reclassification of deferred tax assets/liabilities in the same taxing jurisdiction and elimination of intercompany activity between Industrial Activities and Financial Services. |
CNH INDUSTRIAL PRE-DEMERGER
Supplemental Statements of Cash Flows for the years ended December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||
| ($ million) | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | ||||||||||||||||||||||||||||
| Net income (loss) |
1,340 | 420 | - | 1,760 | (687 | ) | 249 | - | (438 | ) | ||||||||||||||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
1,767 | 869 | (314 | ) (2) | 2,322 | 4,002 | 2,117 | (152 | ) (2) | 5,967 | ||||||||||||||||||||||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
3,107 | 1,289 | (314 | ) | 4,082 | 3,315 | 2,366 | (152 | ) | 5,529 | ||||||||||||||||||||||||||
| NET CASH USED IN INVESTING ACTIVITIES |
(3,870 | ) | (1,146 | ) | 15 | (3) | (5,001 | ) | (1,697 | ) | (1,068 | ) | 15 | (3) | (2,750 | ) | ||||||||||||||||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
(1,645 | ) | (99 | ) | 299 | (4) | (1,445 | ) | 1,563 | (1,041 | ) | 137 | (4) | 659 | ||||||||||||||||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash |
(372 | ) | (31 | ) | - | (403 | ) | 408 | 10 | - | 418 | |||||||||||||||||||||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
(2,780 | ) | 13 | - | (2,767 | ) | 3,589 | 267 | - | 3,856 | ||||||||||||||||||||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR |
8,116 | 1,513 | - | 9,629 | 4,527 | 1,246 | - | 5,773 | ||||||||||||||||||||||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR |
5,336 | 1,526 | - | 6,862 | 8,116 | 1,513 | - | 9,629 | ||||||||||||||||||||||||||||
Notes:
| (1) | Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services. |
| (2) | This item includes the elimination of dividends from Financial Services to Industrial Activities. |
| (3) | This item includes the elimination of paid capital from Industrial Activities to Financial Services. |
| (4) | This item includes the elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash provided by operating activities, net of the elimination of paid in capital from Industrial Activities to Financial Services. |
| 11 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Other Supplemental Financial Information
(Unaudited)
| Reconciliation of Consolidated Net Income to Adjusted EBIT of Industrial Activities by segment under U.S. GAAP ($ million)
|
||||||||||||||||||||||||||||
| Three Months ended December 31, 2021 | ||||||||||||||||||||||||||||
| Agriculture | Construction | Commercial and Specialty Vehicles |
Powertrain | Unallocated items, eliminations and other |
Total | |||||||||||||||||||||||
| Consolidated Net income |
307 | |||||||||||||||||||||||||||
| Less: Consolidated Income tax (expense) benefit |
82 | |||||||||||||||||||||||||||
| Consolidated Income before taxes |
225 | |||||||||||||||||||||||||||
| Less: Financial Services |
||||||||||||||||||||||||||||
| Financial Services Net income |
112 | |||||||||||||||||||||||||||
| Financial Services Income taxes |
23 | |||||||||||||||||||||||||||
| Add back of the following Industrial Activities items: |
||||||||||||||||||||||||||||
| Interest expenses, net of interest income and eliminations |
55 | |||||||||||||||||||||||||||
| Foreign exchange (gains) losses, net |
21 | |||||||||||||||||||||||||||
| Finance and non-service component of Pension and other post-employment benefit costs(1) |
(37 | ) | ||||||||||||||||||||||||||
| Adjustments for the following Industrial Activities items: |
||||||||||||||||||||||||||||
| Restructuring expenses |
12 | 2 | 28 | - | - | 42 | ||||||||||||||||||||||
| Other discrete items(2) |
- | - | - | - | 210 | 210 | ||||||||||||||||||||||
| Nikola investment fair value adjustment |
- | - | - | - | 20 | 20 | ||||||||||||||||||||||
| Adjusted EBIT of Industrial Activities |
414 | 20 | 55 | 23 | (111 | ) | 401 | |||||||||||||||||||||
| Three Months ended December 31, 2020 | ||||||||||||||||||||||||||||
| Agriculture | Construction | Commercial and Specialty Vehicles |
Powertrain | Unallocated items, eliminations and other |
Total | |||||||||||||||||||||||
| Consolidated Net income |
187 | |||||||||||||||||||||||||||
| Less: Consolidated Income tax (expense) benefit |
(28 | ) | ||||||||||||||||||||||||||
| Consolidated Income before taxes |
215 | |||||||||||||||||||||||||||
| Less: Financial Services |
||||||||||||||||||||||||||||
| Financial Services Net income |
60 | |||||||||||||||||||||||||||
| Financial Services Income taxes |
9 | |||||||||||||||||||||||||||
| Add back of the following Industrial Activities items: |
||||||||||||||||||||||||||||
| Interest expenses, net of interest income and eliminations |
63 | |||||||||||||||||||||||||||
| Foreign exchange (gains) losses, net |
23 | |||||||||||||||||||||||||||
| Finance and non-service component of Pension and other post-employment benefit costs(1) |
99 | |||||||||||||||||||||||||||
| Adjustments for the following Industrial Activities items: |
||||||||||||||||||||||||||||
| Restructuring expenses |
4 | 4 | 7 | 15 | - | 30 | ||||||||||||||||||||||
| Other discrete items(2) |
- | - | 24 | - | 1 | 25 | ||||||||||||||||||||||
| Nikola investment fair value adjustment |
- | - | - | - | 134 | 134 | ||||||||||||||||||||||
| Adjusted EBIT of Industrial Activities |
379 | 10 | 110 | 110 | (89 | ) | 520 | |||||||||||||||||||||
|
(1) In the three months ended December 31, 2021 and 2020, this item includes the pre-tax gain of $29 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. In the three months ended December 31, 2021, this item also includes a pre-tax gain of $5 million as a result of the amortization over 4 years of the $101 million positive impact from 2021 modifications of a healthcare plan in the U.S. In the three months ended December 31, 2020, this item also included a pre-tax non-cash settlement charge of $124 million resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations. (2) In the three months ended December 31, 2021, this item also includes $146 million separation and transaction costs incurred in connection with the spin-off of the Iveco Group Business (the Demerger), a charge of $51 million for transaction costs related to the acquisition of Raven Industries, Inc., as well as a gain of $12 million for a fair value adjustment of Monarch Tractor investment and a loss of $25 million due to the valuation at their recoverable amount of certain assets classified as held for sale. In the three months ended December 31, 2020, this item included the negative impact from the costs recognized by a Chinese joint venture, accounted for under the equity method, for valuation allowances against deferred tax assets and restructuring actions.
| ||||||||||||||||||||||||||||
| 12 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Other Supplemental Financial Information
(Unaudited)
| Reconciliation of Consolidated Net Income to Adjusted EBIT of Industrial Activities by segment under U.S. GAAP ($ million)
|
||||||||||||||||||||||||||||||
| Year ended December 31, 2021 | ||||||||||||||||||||||||||||||
| Agriculture | Construction | Commercial and Specialty Vehicles |
Powertrain | Unallocated items, eliminations and other |
Total | |||||||||||||||||||||||||
| Consolidated Net income |
1,760 | |||||||||||||||||||||||||||||
| Less: Consolidated Income tax (expense) benefit |
(342 | ) | ||||||||||||||||||||||||||||
| Consolidated Income before taxes |
2,102 | |||||||||||||||||||||||||||||
| Less: Financial Services |
||||||||||||||||||||||||||||||
| Financial Services Net income |
420 | |||||||||||||||||||||||||||||
| Financial Services Income taxes |
125 | |||||||||||||||||||||||||||||
| Add back of the following Industrial Activities items: |
||||||||||||||||||||||||||||||
| Interest expenses, net of interest income and eliminations |
235 | |||||||||||||||||||||||||||||
| Foreign exchange (gains) losses, net |
51 | |||||||||||||||||||||||||||||
| Finance and non-service component of Pension and other post-employment benefit costs(1) |
(141 | ) | ||||||||||||||||||||||||||||
| Adjustments for the following Industrial Activities items: |
||||||||||||||||||||||||||||||
| Restructuring expenses |
20 | 15 | 37 | 2 | - | 74 | ||||||||||||||||||||||||
| Other discrete items(2) |
- | - | (55 | ) | - | 255 | 200 | |||||||||||||||||||||||
| Nikola investment fair value adjustment |
- | - | - | - | 138 | 138 | ||||||||||||||||||||||||
| Adjusted EBIT of Industrial Activities |
1,810 | 90 | 282 | 256 | (324 | ) | 2,114 | |||||||||||||||||||||||
| Year ended December 31, 2020 | ||||||||||||||||||||||||||||||
| Agriculture | Construction | Commercial Vehicles |
Powertrain | Unallocated items, eliminations and other |
Total | |||||||||||||||||||||||||
| Consolidated Net income (loss) |
(438 | ) | ||||||||||||||||||||||||||||
| Less: Consolidated Income tax (expense) benefit |
50 | |||||||||||||||||||||||||||||
| Consolidated Income (loss) before taxes |
(488) | |||||||||||||||||||||||||||||
| Less: Financial Services |
||||||||||||||||||||||||||||||
| Financial Services Net income |
249 | |||||||||||||||||||||||||||||
| Financial Services Income taxes |
83 | |||||||||||||||||||||||||||||
| Add back of the following Industrial Activities items: |
||||||||||||||||||||||||||||||
| Interest expenses, net of interest income and eliminations |
244 | |||||||||||||||||||||||||||||
| Foreign exchange (gains) losses, net |
45 | |||||||||||||||||||||||||||||
| Finance and non-service component of Pension and other post-employment benefit costs(1) |
14 | |||||||||||||||||||||||||||||
| Adjustments for the following Industrial Activities items: |
||||||||||||||||||||||||||||||
| Restructuring expenses |
13 | 9 | 11 | 16 | - | 49 | ||||||||||||||||||||||||
| Goodwill impairment charge |
- | - | - | - | 585 | 585 | ||||||||||||||||||||||||
| Other discrete items(2) |
176 | 72 | 313 | - | 8 | 569 | ||||||||||||||||||||||||
| Nikola investment fair value adjustment |
- | - | - | - | (134 | ) | (134 | ) | ||||||||||||||||||||||
| Adjusted EBIT of Industrial Activities |
880 | (184 | ) | (109 | ) | 233 | (268 | ) | 552 | |||||||||||||||||||||
| (1) In the years ended December 31, 2021, and 2020, this item includes the pre-tax gain of $119 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. In the year ended December 31, 2021, this item also includes a pre-tax gain of $5 million as a result of the amortization over 4 years of the $101 million positive impact from 2021 modifications of a healthcare plan in the U.S. In the year ended December 31, 2020, this item also included a pre-tax non-cash settlement charge of $124 million resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations. (2) In the year ended December 31, 2021, this item includes the pre- and after-tax gain of $42 million from the sale of the 30.1% interest in Naveco, as well as the positive impact of $13 million from the sale of investments by a joint venture accounted for under the equity method, presented in column “Commercial and Specialty Vehicles”. This item also includes $185 million separation and transaction costs in connection with the spin-off of the Iveco Group Business (the Demerger), a charge of $57 million for transaction costs related to the acquisition of Raven Industries, Inc., as well as a gain of $12 million for a fair value adjustment of Monarch Tractor investment and a loss of $25 million due to the valuation at their recoverable amount of certain assets classified as held for sale. In the year ended December 31, 2020, this item mainly includes impairment of intangible and other long-lived assets, asset optimization charges, and the negative impact from the costs recognized by a Chinese joint venture, accounted for under the equity method, for valuation allowances against deferred tax assets and restructuring actions. |
|
|||||||||||||||||||||||||||||
| 13 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Other Supplemental Financial Information
(Unaudited)
| Reconciliation of Total (Debt) to Net Cash (Debt) under U.S.
GAAP ($ million) |
||||||||||||||||||||||||||||||||
|
Consolidated |
Industrial Activities | Financial Services | ||||||||||||||||||||||||||||||
| December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
|||||||||||||||||||||||||||
| Third-party (debt) | (23,745 | ) | (26,053 | ) | (5,365 | ) | (7,271 | ) | (18,380 | ) | (18,782 | ) | ||||||||||||||||||||
| Intersegment notes payable | - | - | (798 | ) | (1,017 | ) | (1,055 | ) | (856 | ) | ||||||||||||||||||||||
| Total (Debt)(1) | (23,745 | ) | (26,053 | ) | (6,163 | ) | (8,288 | ) | (19,435 | ) | (19,638 | ) | ||||||||||||||||||||
| Cash and cash equivalents | 6,006 | 8,785 | 5,190 | 8,017 | 816 | 768 | ||||||||||||||||||||||||||
| Restricted cash | 856 | 844 | 146 | 99 | 710 | 745 | ||||||||||||||||||||||||||
| Intersegment notes receivable | - | - | 1,055 | 856 | 798 | 1,017 | ||||||||||||||||||||||||||
| Other current financial assets(2) | 63 | 94 | 63 | 94 | - | - | ||||||||||||||||||||||||||
| Derivatives hedging debt | (3 | ) | 8 | (3 | ) | 8 | - | - | ||||||||||||||||||||||||
| Net Cash (Debt)(3) | (16,823 | ) | (16,322 | ) | 288 | 786 | (17,111 | ) | (17,108 | ) | ||||||||||||||||||||||
|
(1) Total (Debt) of Industrial Activities includes Intersegment notes payable to Financial Services of $798 million and $1,017 million as of December 31, 2021 and 2020, respectively. Total (Debt) of Financial Services includes Intersegment notes payable to Industrial Activities of $1,055 million and $856 million as of December 31, 2021 and 2020, respectively. (2) This item includes short-term deposits and investments towards high-credit rating counterparties. (3) The net intersegment receivable/(payable) balance recorded by Financial Services relating to Industrial Activities was $(257) million and $161 million as of December 31, 2021 and 2020, respectively.
|
| |||||||||||||||||||||||||||||||
| Reconciliation of Cash and cash equivalents to Available liquidity under U.S.
GAAP ($ million)
|
||||||||||||||
| December 31, 2021 | December 31, 2020 | |||||||||||||
| Cash and cash equivalents | 6,006 | 8,785 | ||||||||||||
| Restricted cash | 856 | 844 | ||||||||||||
| Undrawn committed facilities | 5,224 | 6,148 | ||||||||||||
| Other current financial assets(1) | 63 | 94 | ||||||||||||
| Available liquidity | 12,149 | 15,871 | ||||||||||||
| (1) This item includes short-term deposits and investments towards high-credit rating counterparties. |
||||||||||||||
| Change in Net Cash (Debt) of Industrial Activities under U.S. GAAP ($ million)
|
||||||||||||||||||||
| Year ended December 31, | Three Months ended December 31, | |||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||
| 786 | (854 | ) | Net Cash (Debt) of Industrial Activities at beginning of period | 743 | (1,544 | ) | ||||||||||||||
| 2,114 | 552 | Adjusted EBIT of Industrial Activities | 401 | 520 | ||||||||||||||||
| 608 | 627 | Depreciation and Amortization | 158 | 169 | ||||||||||||||||
| 271 | 284 | Depreciation of assets under operating leases and assets sold with buy-back commitments |
68 | 86 | ||||||||||||||||
| (559 | ) | (233 | ) | Cash interest and taxes | (121) | (35 | ) | |||||||||||||
| 94 | (445 | ) | Changes in provisions and similar(1) | 3 | (60 | ) | ||||||||||||||
| (58 | ) | 1,828 | Change in working capital | 1,657 | 1,964 | |||||||||||||||
| 2,470 | 2,613 | Operating cash flow of Industrial Activities | 2,166 | 2,644 | ||||||||||||||||
| (706 | ) | (481 | ) | Investments in property, plant and equipment, and intangible assets(2) |
(345) | (253 | ) | |||||||||||||
| (13 | ) | (206 | ) | Other changes | 21 | (26 | ) | |||||||||||||
| 1,751 | 1,926 | Free cash flow of Industrial Activities | 1,842 | 2,365 | ||||||||||||||||
| (188 | ) | (8 | ) | Capital increases and dividends | (4) | (4 | ) | |||||||||||||
| (2,061 | ) | (278 | ) | Currency translation differences and other(3) | (2,293) | (31 | ) | |||||||||||||
| (498 | ) | 1,640 | Change in Net Cash (Debt) of Industrial Activities | (455) | 2,330 | |||||||||||||||
| 288 | 786 | Net Cash (Debt) of Industrial Activities at end of period | 288 | 786 | ||||||||||||||||
| (1) Including other cash flow items related to operating lease and buy-back activities. (2) Excluding assets sold under buy-back commitments and assets under operating leases. (3) In the three months ended December 31, 2021, this item includes the cash out of $2,246 million for the acquisition of the 100% interest in Raven Industries, Inc., and $82 million to achieve the 90% interest in Sampierana. In the year ended December 31, 2021, this item includes the cash out of $2,246 million for the acquisition of the 100% interest in Raven Industries, Inc., and $86 million for the acquisition of the 90% interest in Sampierana, as well as the charge of $8 million related to the repurchase of Notes. |
||||||||||||||
| 14 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Other Supplemental Financial Information
(Unaudited)
| Reconciliation of Net cash provided by (used in) Operating Activities | ||||||||||||||||||||||
| to Free cash flow of Industrial
Activities under U.S. GAAP ($ million) |
||||||||||||||||||||||
| Year ended December 31, | Three Months ended December 31, | |||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| 4,082 | 5,529 | Net cash provided by (used in) Operating Activities | 2,190 | 2,766 | ||||||||||||||||||
|
|
(975) | (2,214 | ) | Less: Cash flows from Operating Activities of Financial Services net of eliminations | 94 | 256 | ||||||||||||||||
| 91 | (15 | ) | Change in derivatives hedging debt of Industrial Activities and other | 99 | (24 | ) | ||||||||||||||||
| (728) | (687 | ) | Investments in assets sold under buy-back commitments and operating lease assets of Industrial Activities |
(217 | ) | (354 | ) | |||||||||||||||
| 2,470 | 2,613 | Operating cash flow of Industrial Activities | 2,166 | 2,644 | ||||||||||||||||||
| (706) | (481 | ) | Investments in property, plant and equipment, and intangible assets of Industrial Activities |
(345 | ) | (253 | ) | |||||||||||||||
| (13) | (206 | ) | Other changes(1) | 21 | (26 | ) | ||||||||||||||||
| 1,751 | 1,926 | Free cash flow of Industrial Activities | 1,842 | 2,365 | ||||||||||||||||||
| (1) This item primarily includes change in intersegment financial receivables and capital increases in intersegment investments. |
|
|||||||||||||||||||||
| Reconciliation of Adjusted net income and Adjusted income tax (expense) benefit to Net income (loss) and | ||||||||||||||||
| Income tax (expense) benefit and
calculation of Adjusted diluted EPS and Adjusted ETR under U.S. GAAP ($ million, except per share data) |
||||||||||||||||
| Year ended December 31, | Three Months ended December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| 1,760 | (438) | Net income (loss) | 307 | 187 | ||||||||||||
|
|
311 | 1,051 | Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) | 240 | 261 | |||||||||||
| (13) | 24 | Adjustments impacting Equity in income of unconsolidated subsidiaries and affiliates | - | 24 | ||||||||||||
| (178) | (200) | Adjustments impacting Income tax (expense) benefit (b) | (200) | (40 | ) | |||||||||||
| 1,880 | 437 | Adjusted net income (loss) | 347 | 432 | ||||||||||||
| 1,843 | 379 | Adjusted net income (loss) attributable to CNH Industrial N.V. | 342 | 409 | ||||||||||||
| 1,361 | 1,352 | Weighted average shares outstanding – diluted (million) | 1,363 | 1,353 | ||||||||||||
| 1.35 | 0.28 | Adjusted diluted EPS ($) | 0.25 | 0.30 | ||||||||||||
| 1,980 | (505) | Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates | 196 | 230 | ||||||||||||
| 311 | 1,051 | Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) | 240 | 261 | ||||||||||||
| 2,291 | 546 | Adjusted income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (A) | 436 | 491 | ||||||||||||
| (342) | 50 | Income tax (expense) benefit | 82 | (28 | ) | |||||||||||
| (178) | (200) | Adjustments impacting Income tax (expense) benefit (b) | (200) | (40 | ) | |||||||||||
| (520) | (150) | Adjusted income tax (expense) benefit (B) | (118) | (68 | ) | |||||||||||
| 23% | 27% | Adjusted Effective Tax Rate (Adjusted ETR) (C=B/A) | 27% | 14 | % | |||||||||||
| a) Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates |
||||||||||||||||
| 138 | (134) | Nikola investment fair value adjustment | 20 | 134 | ||||||||||||
| 74 | 49 | Restructuring expenses | 42 | 30 | ||||||||||||
| 8 | - | Loss on repurchase of notes | - | - | ||||||||||||
| (119) | (119) | Pre-tax gain related to the 2018 modification of a healthcare plan in the U.S. | (29) | (29 | ) | |||||||||||
| (5) | - | Pre-tax gain related to the 2021 modifications of a healthcare plan in the U.S. | (5) | - | ||||||||||||
| - | 125 | Pre-tax settlement charge related to the purchase of annuity contracts to settle a portion of U.S. pension obligations | - | 125 | ||||||||||||
| - | 585 | Goodwill impairment charge | - | - | ||||||||||||
| - | 255 | Other assets impairment charges | - | - | ||||||||||||
| - | 282 | Optimization charges on asset portfolio relating to vehicles sold under buy-back commitments | - | - | ||||||||||||
| 187 | 8 | Spin-off costs | 148 | 1 | ||||||||||||
| (42) | - | Gain from the sale of 30.1% interest in Naveco | - | - | ||||||||||||
| 57 | - | Transaction costs for Raven Industries, Inc. acquisition | 51 | - | ||||||||||||
| (12) | - | Monarch Tractor investment fair value adjustment | (12) | - | ||||||||||||
| 25 | - | Impairment of certain assets held for sale | 25 | - | ||||||||||||
| 311 | 1,051 | Total | 240 | 261 | ||||||||||||
| b) Adjustments impacting Income tax (expense) benefit |
||||||||||||||||
| (7) | (106) | Tax effect of adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates | (16) | (32 | ) | |||||||||||
| (161) | (82) | Adjustment to valuation allowances on deferred tax assets | (161) | - | ||||||||||||
| (10) | (12) | Other | (23) | (8 | ) | |||||||||||
| (178) | (200) | Total | (200) | (40 | ) | |||||||||||
| 15 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL EXCLUDING IVECO GROUP
Pro Forma Non-GAAP Combined Condensed Statements of Operations for the years ended December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| Years Ended December 31, | ||||||||
| ($ million) | 2021 | 2020 | ||||||
| Revenues |
||||||||
| Net sales |
17,802 | 13,083 | ||||||
| Finance, interest and other income |
1,694 | 1,696 | ||||||
| TOTAL REVENUES |
19,496 | 14,779 | ||||||
| Costs and Expenses |
||||||||
| Cost of goods sold |
14,109 | 11,152 | ||||||
| Selling, general and administrative expenses |
1,454 | 1,296 | ||||||
| Research and development expenses |
642 | 493 | ||||||
| Restructuring expenses |
35 | 22 | ||||||
| Interest expense |
549 | 660 | ||||||
| Goodwill impairment charge |
- | 585 | ||||||
| Other, net |
768 | 750 | ||||||
| TOTAL COSTS AND EXPENSES |
17,557 | 14,958 | ||||||
| INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES |
1,939 | (179 | ) | |||||
| Income tax (expense) benefit |
(229 | ) | (85 | ) | ||||
| Equity in income (loss) of unconsolidated subsidiaries and affiliates |
91 | 66 | ||||||
| NET INCOME (LOSS) |
1,801 | (198 | ) | |||||
| Net income attributable to noncontrolling interests |
9 | 14 | ||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO CNH INDUSTRIAL N.V. |
1,792 | (212 | ) | |||||
| (in $) | ||||||||
| Earnings (loss) per share attributable to common shareholders |
||||||||
| Basic |
1.32 | (0.16 | ) | |||||
| Diluted |
1.32 | (0.16 | ) | |||||
| Cash dividends declared per common share |
- | |||||||
| 16 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL EXCLUDING IVECO GROUP
Pro Forma Non-GAAP Combined Condensed Balance Sheets as of December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| ($ million) | December 31, 2021 | December 31, 2020 | ||||||
| ASSETS |
||||||||
| Cash and cash equivalents |
5,044 | 8,199 | ||||||
| Restricted cash |
801 | 788 | ||||||
| Financial receivables from Iveco Group |
3,484 | 3,146 | ||||||
| Receivables from financing activities |
15,376 | 14,994 | ||||||
| Inventories, net |
4,216 | 3,260 | ||||||
| Property, plant and equipment, net and Equipment under operating leases |
3,213 | 3,358 | ||||||
| Intangible assets, net |
4,417 | 2,490 | ||||||
| Other receivables and assets |
2,936 | 2,243 | ||||||
| TOTAL ASSETS |
39,487 | 38,478 | ||||||
| LIABILITIES AND EQUITY |
||||||||
| Debt payable to Iveco Group |
3,986 | 4,348 | ||||||
| Other debt |
20,897 | 22,932 | ||||||
| Other payables and liabilities |
9,405 | 7,990 | ||||||
| Total Liabilities |
34,288 | 35,270 | ||||||
| Redeemable noncontrolling interest |
45 | 40 | ||||||
| Equity |
5,154 | 3,168 | ||||||
| TOTAL LIABILITIES AND EQUITY |
39,487 | 38,478 | ||||||
CNH INDUSTRIAL EXCLUDING IVECO GROUP
Pro Forma Non-GAAP Combined Condensed Statements of Cash Flows for the years ended December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| ($ million) | 2021 | 2020 | ||||||
| Net income (loss) |
1,801 | (198 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
1,397 | 4,387 | ||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
3,198 | 4,189 | ||||||
| NET CASH USED IN INVESTING ACTIVITIES |
(4,570 | ) | (1,955 | ) | ||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |
(1,399 | ) | 1,066 | |||||
| Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash |
(371 | ) | 382 | |||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
(3,142 | ) | 3,682 | |||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR |
8,987 | 5,305 | ||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR |
5,845 | 8,987 | ||||||
| 17 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL EXCLUDING IVECO GROUP
Supplemental Pro Forma Non-GAAP Combined Statements of Operations for the years ended December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| ($ million) | Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
| Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | |||||||||||||||||||||||||||||
| Revenues |
||||||||||||||||||||||||||||||||||||
| Net sales |
17,802 | - | - | 17,802 | 13,083 | - | - | 13,083 | ||||||||||||||||||||||||||||
| Finance, interest and other income |
59 | 1,672 | (37 | ) (2) | 1,694 | 67 | 1,660 | (31 | ) (2) | 1,696 | ||||||||||||||||||||||||||
| TOTAL REVENUES |
17,861 | 1,672 | (37 | ) | 19,496 | 13,150 | 1,660 | (31 | ) | 14,779 | ||||||||||||||||||||||||||
| Costs and Expenses |
||||||||||||||||||||||||||||||||||||
| Cost of goods sold |
14,109 | - | - | 14,109 | 11,152 | - | - | 11,152 | ||||||||||||||||||||||||||||
| Selling, general and administrative expenses |
1,327 | 127 | - | 1,454 | 1,108 | 188 | - | 1,296 | ||||||||||||||||||||||||||||
| Research and development expenses |
642 | - | - | 642 | 493 | - | - | 493 | ||||||||||||||||||||||||||||
| Restructuring expenses |
35 | - | - | 35 | 22 | - | - | 22 | ||||||||||||||||||||||||||||
| Interest expense |
177 | 409 | (37 | ) (3) | 549 | 206 | 485 | (31 | ) (3) | 660 | ||||||||||||||||||||||||||
| Goodwill impairment charge |
- | - | - | - | 585 | - | - | 585 | ||||||||||||||||||||||||||||
| Other, net |
73 | 695 | - | 768 | 78 | 672 | - | 750 | ||||||||||||||||||||||||||||
| TOTAL COSTS AND EXPENSES |
16,363 | 1,231 | (37 | ) | 17,557 | 13,644 | 1,345 | (31 | ) | 14,958 | ||||||||||||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES | 1,498 | 441 | - | 1,939 | (494 | ) | 315 | - | (179 | ) | ||||||||||||||||||||||||||
| Income tax (expense) benefit |
(122 | ) | (107 | ) | - | (229 | ) | - | (85 | ) | - | (85 | ) | |||||||||||||||||||||||
| Equity in income of unconsolidated subsidiaries and affiliates |
76 | 15 | - | 91 | 53 | 13 | - | 66 | ||||||||||||||||||||||||||||
| NET INCOME (LOSS) |
1,452 | 349 | - | 1,801 | (441 | ) | 243 | - | (198 | ) | ||||||||||||||||||||||||||
Notes:
| (1) | Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services. |
| (2) | Elimination of Financial Services’ interest income earned from Industrial Activities. |
| (3) | Elimination of Industrial Activities’ interest expense to Financial Services. |
| 18 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL EXCLUDING IVECO GROUP
Supplemental Pro Forma Non-GAAP Combined Balance Sheets as of December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
| ($ million) | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | ||||||||||||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents |
4,386 | 658 | - | 5,044 | 7,507 | 692 | - | 8,199 | ||||||||||||||||||||||||||||
| Restricted cash |
128 | 673 | - | 801 | 85 | 703 | - | 788 | ||||||||||||||||||||||||||||
| Financial receivables from Iveco Group |
3,430 | 54 | - | 3,484 | 3,078 | 68 | - | 3,146 | ||||||||||||||||||||||||||||
| Receivables from financing activities |
199 | 15,508 | (331 | ) (2) | 15,376 | 342 | 15,473 | (821 | ) (2) | 14,994 | ||||||||||||||||||||||||||
| Inventories, net |
4,187 | 29 | - | 4,216 | 3,221 | 39 | - | 3,260 | ||||||||||||||||||||||||||||
| Property, plant and equipment, net and Equipment under operating leases |
1,504 | 1,709 | - | 3,213 | 1,498 | 1,860 | - | 3,358 | ||||||||||||||||||||||||||||
| Intangible assets, net |
4,255 | 162 | - | 4,417 | 2,332 | 158 | - | 2,490 | ||||||||||||||||||||||||||||
| Other receivables and assets |
2,769 | 344 | (177 | ) | 2,936 | 2,108 | 347 | (212 | ) (3) | 2,243 | ||||||||||||||||||||||||||
| TOTAL ASSETS |
20,858 | 19,137 | (508 | ) (3) | 39,487 | 20,171 | 19,340 | (1,033 | ) | 38,478 | ||||||||||||||||||||||||||
| LIABILITIES AND EQUITY |
||||||||||||||||||||||||||||||||||||
| Debt payable to Iveco Group |
3,764 | 222 | - | 3,986 | 4,169 | 179 | - | 4,348 | ||||||||||||||||||||||||||||
| Other debt |
5,485 | 15,743 | (331 | ) (2) | 20,897 | 7,734 | 16,021 | (823 | ) (2) | 22,932 | ||||||||||||||||||||||||||
| Other payables and liabilities |
8,539 | 1,043 | (177 | ) (3) | 9,405 | 7,141 | 1,059 | (210 | ) (3) | 7,990 | ||||||||||||||||||||||||||
| Total Liabilities |
17,788 | 17,008 | (508 | ) | 34,288 | 19,044 | 17,259 | (1,033 | ) | 35,270 | ||||||||||||||||||||||||||
| Redeemable noncontrolling interest |
45 | - | - | 45 | 40 | - | - | 40 | ||||||||||||||||||||||||||||
| Equity |
3,025 | 2,129 | - | 5,154 | 1,087 | 2,081 | - | 3,168 | ||||||||||||||||||||||||||||
| TOTAL LIABILITIES AND EQUITY |
20,858 | 19,137 | (508 | ) | 39,487 | 20,171 | 19,340 | (1,033 | ) | 38,478 | ||||||||||||||||||||||||||
Notes:
| (1) | Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services. |
| (2) | This item includes the elimination of receivables/payables between Industrial Activities and Financial Services. |
| (3) | This item primarily represents the reclassification of deferred taxes assets/liabilities in the same taxing jurisdiction and elimination of intercompany activity between Industrial Activities and Financial Services. |
CNH INDUSTRIAL EXCLUDING IVECO GROUP
Supplemental Pro Forma Non-GAAP Combined Statements of Cash Flows for the years ended December 31, 2021 and 2020
(Unaudited, U.S. GAAP)
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||
| ($ million) | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | ||||||||||||||||||||||||||||
| Net income (loss) |
1,452 | 349 | - | 1,801 | (441 | ) | 243 | - | (198 | ) | ||||||||||||||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
799 | 909 | (311 | ) (2) | 1,397 | 2,775 | 1,763 | (151 | ) (2) | 4,387 | ||||||||||||||||||||||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,251 | 1,258 | (311 | ) | 3,198 | 2,334 | 2,006 | (151 | ) | 4,189 | ||||||||||||||||||||||||||
| NET CASH USED IN INVESTING ACTIVITIES | (3,347 | ) | (1,233 | ) | 10 | (3) | (4,570 | ) | (955 | ) | (1,015 | ) | 15 | (3) | (1,955 | ) | ||||||||||||||||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (1,628 | ) | (72 | ) | 301 | (4) | (1,399 | ) | 1,605 | (675 | ) | 136 | (4) | 1,066 | ||||||||||||||||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | (354 | ) | (17 | ) | - | (371 | ) | 386 | (4 | ) | - | 382 | ||||||||||||||||||||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (3,078 | ) | (64 | ) | - | (3,142 | ) | 3,370 | 312 | - | 3,682 | |||||||||||||||||||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR | 7,592 | 1,395 | - | 8,987 | 4,222 | 1,083 | - | 5,305 | ||||||||||||||||||||||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 4,514 | 1,331 | - | 5,845 | 7,592 | 1,395 | - | 8,987 | ||||||||||||||||||||||||||||
Notes:
| (1) | Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services. |
| (2) | This item includes the elimination of dividends from Financial Services to Industrial Activities. |
| (3) | This item includes the elimination of paid capital from Industrial Activities to Financial Services. |
| (4) | This item includes the elimination of dividends from Financial Services to Industrial Activities, which are included in Industrial Activities net cash provided by operating activities, net of the elimination of paid in capital from Industrial Activities to Financial Services. |
| 19 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL EXCLUDING IVECO GROUP
Other Supplemental Pro Forma Non-GAAP Combined Financial Information
(Unaudited)
| Reconciliation of Consolidated Net Income to Adjusted EBIT of Industrial Activities by segment under U.S. GAAP ($ million)
|
||||||||||||||||||||||||||||
| Year ended December 31, 2021 | ||||||||||||||||||||||||||||
| Agriculture | Construction | Unallocated items, eliminations and other |
Total | |||||||||||||||||||||||||
| Consolidated Net income |
1,801 | |||||||||||||||||||||||||||
| Less: Consolidated Income tax (expense) benefit |
(229 | ) | ||||||||||||||||||||||||||
| Consolidated Income before taxes |
2,030 | |||||||||||||||||||||||||||
| Less: Financial Services |
||||||||||||||||||||||||||||
| Financial Services Net income |
349 | |||||||||||||||||||||||||||
| Financial Services Income taxes |
107 | |||||||||||||||||||||||||||
| Add back of the following Industrial Activities items: |
||||||||||||||||||||||||||||
| Interest expenses, net of interest income and eliminations |
118 | |||||||||||||||||||||||||||
| Foreign exchange (gains) losses, net |
1 | |||||||||||||||||||||||||||
| Finance and non-service component of Pension and other post-employment benefit costs(1) |
(143 | ) | ||||||||||||||||||||||||||
| Adjustments for the following Industrial Activities items: |
||||||||||||||||||||||||||||
| Restructuring expenses |
20 | 15 | - | 35 | ||||||||||||||||||||||||
| Other discrete items(2) |
- | - | 178 | 178 | ||||||||||||||||||||||||
| Adjusted EBIT of Industrial Activities |
1,810 | 90 | (137 | ) | 1,763 | |||||||||||||||||||||||
| Year ended December 31, 2020 | ||||||||||||||||||||||||||||
| Agriculture | Construction | Unallocated items, eliminations and other |
Total | |||||||||||||||||||||||||
| Consolidated Net income (loss) |
(198 | ) | ||||||||||||||||||||||||||
| Less: Consolidated Income tax (expense) benefit |
(85 | ) | ||||||||||||||||||||||||||
| Consolidated Income (loss) before taxes |
(113) | |||||||||||||||||||||||||||
| Less: Financial Services |
||||||||||||||||||||||||||||
| Financial Services Net income |
243 | |||||||||||||||||||||||||||
| Financial Services Income taxes |
85 | |||||||||||||||||||||||||||
| Add back of the following Industrial Activities items: |
||||||||||||||||||||||||||||
| Interest expenses, net of interest income and eliminations |
140 | |||||||||||||||||||||||||||
| Foreign exchange (gains) losses, net |
12 | |||||||||||||||||||||||||||
| Finance and non-service component of Pension and other post-employment benefit costs(1) |
9 | |||||||||||||||||||||||||||
| Adjustments for the following Industrial Activities items: |
||||||||||||||||||||||||||||
| Restructuring expenses |
13 | 9 | - | 22 | ||||||||||||||||||||||||
| Goodwill impairment charge |
- | - | 585 | 585 | ||||||||||||||||||||||||
| Other discrete items(2) |
176 | 72 | 8 | 256 | ||||||||||||||||||||||||
| Adjusted EBIT of Industrial Activities |
880 | (184 | ) | (113 | ) | 583 | ||||||||||||||||||||||
| (1) In the years ended December 31, 2021, and 2020, this item includes the pre-tax gain of $119 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. In the year ended December 31, 2021, this item also includes a pre-tax gain of $5 million as a result of the amortization over 4 years of the $101 million positive impact from 2021 modification of a healthcare plan in the U.S. In the years ended December 31, 2020, this item also included a pre-tax non-cash settlement charge of $124 million resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations. |
|
|||||||||||||||||||||||||||
| (2) In the year ended December 31, 2021, this item includes $133 million separation and transaction costs in connection with the spin-off of the Iveco Group Business (the Demerger), a charge of $57 million for transaction costs related to the acquisition of Raven Industries, Inc., as well as a gain of $12 million for a fair value adjustment of Monarch Tractor investment. In the year ended December 31, 2020, this item mainly includes impairment of intangible and other long-lived assets.
|
|
|||||||||||||||||||||||||||
| 20 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL EXCLUDING IVECO GROUP
Other Supplemental Pro Forma Non-GAAP Combined Financial Information
(Unaudited)
| Reconciliation of Total (Debt) to Net Cash (Debt) under U.S.
GAAP ($ million) |
||||||||||||||||||||||||||||||||
|
Consolidated |
Industrial Activities | Financial Services | ||||||||||||||||||||||||||||||
| December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
|||||||||||||||||||||||||||
| Third-party (debt) | (20,897 | ) | (22,932 | ) | (5,335 | ) | (7,233 | ) | (15,562 | ) | (15,699 | ) | ||||||||||||||||||||
| Intersegment notes payable | - | - | (150 | ) | (501 | ) | (181 | ) | (322 | ) | ||||||||||||||||||||||
| (Debt) payable to Iveco Group | (3,986 | ) | (4,348 | ) | (3,764 | ) | (4,169 | ) | (222 | ) | (179 | ) | ||||||||||||||||||||
| Total (Debt)(1) | (24,883 | ) | (27,280 | ) | (9,249 | ) | (11,903 | ) | (15,965 | ) | (16,200 | ) | ||||||||||||||||||||
| Cash and cash equivalents | 5,044 | 8,199 | 4,386 | 7,507 | 658 | 692 | ||||||||||||||||||||||||||
| Restricted cash | 801 | 788 | 128 | 85 | 673 | 703 | ||||||||||||||||||||||||||
| Intersegment notes receivable | - | - | 181 | 322 | 150 | 501 | ||||||||||||||||||||||||||
| Financial receivables from Iveco Group | 3,484 | 3,146 | 3,430 | 3,078 | 54 | 68 | ||||||||||||||||||||||||||
| Other current financial assets(2) | 1 | 10 | 1 | 10 | - | - | ||||||||||||||||||||||||||
| Derivatives hedging debt | (3 | ) | 8 | (3 | ) | 8 | - | - | ||||||||||||||||||||||||
| Net Cash (Debt)(3) | (15,556 | ) | (15,129 | ) | (1,126 | ) | (893 | ) | (14,430 | ) | (14,236 | ) | ||||||||||||||||||||
| Net Cash (Debt)(3) | (15,556) | (15,129) | (1,126) | (893) | (14,430) | (14,236) | ||||||||||||||||||||||||||
| (1) Total (Debt) of Industrial Activities includes Intersegment notes payable to Financial Services of $150 million and $501 million as of December 31, 2021 and 2020, respectively. Total (Debt) of Financial Services includes Intersegment notes payable to Industrial Activities of $181 million and $322 million as of December 31, 2021 and 2020, respectively. (2) This item includes short-term deposits and investments towards high-credit rating counterparties. (3) The net intersegment receivable/(payable) balance recorded by Financial Services relating to Industrial Activities was $31 million and $179 million as of December 31, 2021 and 2020, respectively.
|
| |||||||||||||||||||||||||||||||
| Reconciliation of Cash and cash equivalents to Available liquidity under U.S. GAAP ($ million)
|
||||||||||||
| December 31, 2021 | December 31, 2020 | |||||||||||
| Cash and cash equivalents | 5,044 | 8,199 | ||||||||||
| Restricted cash | 801 | 788 | ||||||||||
| Undrawn committed facilities | 5,177 | 6,089 | ||||||||||
| Other current financial assets(1) | 1 | 10 | ||||||||||
| Net (Debt) payable to Iveco Group | (502 | ) | (1,202 | ) | ||||||||
| Available liquidity | 10,521 | 13,884 | ||||||||||
| Available liquidity | 10,521 | 13,884 | ||||||||||
|
(1) This item includes short-term deposits and investments towards high-credit rating counterparties. | ||||||||||||
| Change in Net Cash (Debt) of Industrial Activities under U.S. GAAP ($ million)
|
||||||||||||||
| 2021 | 2020 | |||||||||||||
| Net Cash (Debt) of Industrial Activities at beginning of period | (893 | ) | (2,575 | ) | ||||||||||
| Adjusted EBIT of Industrial Activities | 1,763 | 583 | ||||||||||||
| Depreciation and Amortization | 293 | 296 | ||||||||||||
| Depreciation of assets under operating leases and assets sold with buy-back commitments | 2 | 2 | ||||||||||||
| Cash interest and taxes | (376 | ) | (144 | ) | ||||||||||
| Changes in provisions and similar(1) | 395 | 36 | ||||||||||||
| Change in working capital | 248 | 1,554 | ||||||||||||
| Operating cash flow of Industrial Activities | 2,325 | 2,327 | ||||||||||||
| Investments in property, plant and equipment, and intangible assets(2) | (360 | ) | (229 | ) | ||||||||||
| Other changes | (37 | ) | (10 | ) | ||||||||||
| Free cash flow of Industrial Activities | 1,928 | 2,088 | ||||||||||||
| Capital increases and dividends | (188 | ) | (8 | ) | ||||||||||
| Currency translation differences and other(3) | (1,973 | ) | (398 | ) | ||||||||||
| Change in Net Cash (Debt) of Industrial Activities | (233 | ) | 1,682 | |||||||||||
| Net Cash (Debt) of Industrial Activities at end of period | (1,126 | ) | (893 | ) | ||||||||||
|
(1) Including other cash flow items related to operating lease and buy-back activities. (2) Excluding assets sold under buy-back commitments and assets under operating leases. (3) In the year ended December 31, 2021, this item includes the cash out of $2,246 million for the acquisition of the 100% interest in Raven Industries, Inc., and $86 million for the acquisition of the 90% interest in Sampierana, as well as the charge of $8 million related to the repurchase of Notes.
|
|
|||||||||||||
| 21 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL EXCLUDING IVECO GROUP
Other Supplemental Pro Forma Non-GAAP Financial Information
(Unaudited)
| Reconciliation of Net cash provided by (used in)
Operating Activities to Free cash flow of Industrial Activities under U.S. GAAP |
||||||||||||
| ($ million) | ||||||||||||
| 2021 | 2020 |
|||||||||||
| Net cash provided by (used in) Operating Activities | 3,198 | 4,189 | ||||||||||
| Less: Cash flows from Operating Activities of Financial Services net of eliminations | (947) | (1,855) | ||||||||||
| Change in derivatives hedging debt of Industrial Activities and other | 93 | 9 | ||||||||||
|
|
Investments in assets sold under buy-back commitments and operating lease assets of Industrial Activities | (19) | (16) | |||||||||
| Operating cash flow of Industrial Activities | 2,325 | 2,327 | ||||||||||
| Investments in property, plant and equipment, and intangible assets of Industrial Activities | (360) | (229) | ||||||||||
| Other changes(1) | (37) | (10) | ||||||||||
| Free Cash Flow of Industrial Activities | 1,928 | 2,088 | ||||||||||
| (1) This item primarily includes change in intersegment financial receivables and capital increases in intersegment investments. |
||||||||||||
| Reconciliation of Adjusted net
income and Adjusted income tax (expense) benefit to Net income (loss) and Income tax (expense) benefit and calculation of Adjusted diluted EPS and Adjusted ETR under U.S. GAAP |
||||||||||||||
| ($ million, except per share data) | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| Net income (loss) | 1,801 | (198 | ) | |||||||||||
| Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) | 97 | 869 | ||||||||||||
| Adjustments impacting Equity in income of unconsolidated subsidiaries and affiliates | - | - | ||||||||||||
| Adjustments impacting Income tax (expense) benefit (b) | (151 | ) | (85 | ) | ||||||||||
| Adjusted net income (loss) | 1,747 | 586 | ||||||||||||
| Adjusted net income (loss) attributable to CNH Industrial N.V. | 1,738 | 572 | ||||||||||||
| Weighted average shares outstanding – diluted (million) | 1,361 | 1,352 | ||||||||||||
| Adjusted diluted EPS ($) | 1.28 | 0.42 | ||||||||||||
| Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates |
1,939 | (179 | ) | |||||||||||
| Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) | 97 | 869 | ||||||||||||
| Adjusted income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (A) |
2,036 | 690 | ||||||||||||
| Income tax (expense) benefit | (229 | ) | (85 | ) | ||||||||||
| Adjustments impacting Income tax (expense) benefit (b) |
(151 | ) | (85 | ) | ||||||||||
| Adjusted income tax (expense) benefit (B) | (380 | ) | (170 | ) | ||||||||||
| Adjusted Effective Tax Rate (Adjusted ETR) (C=B/A) | 19 | % | 25 | % | ||||||||||
| a) Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates |
|
|||||||||||||
| Restructuring expenses |
35 | 22 | ||||||||||||
| Loss on repurchase of notes | 8 | - | ||||||||||||
| Pre-tax gain related to the 2018 modification of a healthcare plan in the U.S. |
(119 | ) | (119 | ) | ||||||||||
| Pre-tax gain related to the 2021 modifications of a healthcare plan in the U.S. |
(5 | ) | - | |||||||||||
| Pre-tax settlement charge related to the purchase of annuity contracts to settle a portion of U.S. pension obligations | - | 125 | ||||||||||||
| Goodwill impairment charge | - | 585 | ||||||||||||
| Other assets impairment charges | - | 248 | ||||||||||||
| Spin-off costs | 133 | 8 | ||||||||||||
| Transaction costs for Raven Industries, Inc. acquisition | 57 | - | ||||||||||||
| Monarch Tractor investment fair value adjustment | (12 | ) | - | |||||||||||
| Total | 97 | 869 | ||||||||||||
| b) Adjustments impacting Income tax (expense) benefit |
|
|||||||||||||
| Tax effect of adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates | 13 | (44 | ) | |||||||||||
| Adjustment to valuation allowances on deferred tax assets | (161 | ) | (40 | ) | ||||||||||
| Other | (3 | ) | (1 | ) | ||||||||||
| Total |
(151 | ) | (85 | ) | ||||||||||
| 22 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Other Supplemental Financial Information
(Unaudited)
| Revenues by Segment under EU-IFRS | ||||||||||||||||||
| ($ million)
|
||||||||||||||||||
| Year ended December 31, | ||||||||||||||||||
| 2021 | 2020 | % change | ||||||||||||||||
| Agriculture |
14,754 | 10,916 | 35.2 | |||||||||||||||
| Construction |
3,081 | 2,170 | 42.0 | |||||||||||||||
| Eliminations and other |
- | (11 | ) | - | ||||||||||||||
| Total Industrial Activities of Continuing Operations |
17,835 | 13,075 | 36.4 | |||||||||||||||
| Financial Services |
1,664 | 1,644 | 1.2 | |||||||||||||||
| Eliminations and other |
(25 | ) | (23 | ) | - | |||||||||||||
| Total of Continuing Operations |
19,474 | 14,696 | 32.5 | |||||||||||||||
| Commercial and Specialty Vehicles |
12,204 | 9,420 | 29.6 | |||||||||||||||
| Powertrain |
4,435 | 3,633 | 22.1 | |||||||||||||||
| Eliminations and other |
(1,831 | ) | (1,273 | ) | - | |||||||||||||
| Total Industrial Activities of Discontinued Operations |
14,808 | 11,780 | 25.7 | |||||||||||||||
| Financial Services |
230 | 188 | 22.3 | |||||||||||||||
| Eliminations and other |
(75 | ) | (76 | ) | - | |||||||||||||
| Total of Discontinued Operations |
14,963 | 11,892 | 25.8 | |||||||||||||||
| Eliminations and other |
(956 | ) | (604 | ) | - | |||||||||||||
| Total of CNH Industrial Pre-Demerger |
33,481 | 25,984 | 28.9 | |||||||||||||||
| Adjusted EBIT of Industrial Activities(1) by Segment under EU-IFRS ($ million) |
||||||||||||||||||||||||||
| Year ended December 31, | ||||||||||||||||||||||||||
|
|
2021 | 2020 | $ | change | |
2021 adjusted EBIT margin |
|
|
2020 adjusted EBIT margin |
|
||||||||||||||||
| Agriculture | 1,794 | 856 | 938 | 12.2 | % | 7.8 | % | |||||||||||||||||||
| Construction | 83 | (193 | ) | 276 | 2.7 | % | (8.9 | )% | ||||||||||||||||||
| Unallocated items, eliminations and other | (148 | ) | (146 | ) | (2 | ) | - | - | ||||||||||||||||||
| Adjusted EBIT of Industrial Activities of Continuing Operations | 1,729 | 517 | 1,212 | 9.7 | % | 4.0 | % | |||||||||||||||||||
| Commercial and Specialty Vehicles | 300 | (169 | ) | 469 | 2.5 | % | (1.8 | )% | ||||||||||||||||||
| Powertrain | 246 | 223 | 23 | 5.5 | % | 6.1 | % | |||||||||||||||||||
| Unallocated items, eliminations and other | (189 | ) | (155 | ) | (34 | ) | - | - | ||||||||||||||||||
| Adjusted EBIT of Industrial Activities of Discontinued Operations | 357 | (101 | ) | 458 | 2.4 | % | (0.9 | )% | ||||||||||||||||||
| Adjusted EBIT of Industrial Activities of CNH Industrial Pre-Demerger | 2,086 | 416 | 1,670 | 6.6 | % | 1.7 | % | |||||||||||||||||||
|
(1) This item is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Information” section of this press release for information regarding non-GAAP financial measures. |
|
|||||||||||||||||||||||||
| 23 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Other Supplemental Financial Information
(Unaudited)
| Other key data under EU-IFRS | ||||||||||||||
| ($ million) | ||||||||||||||
| December 31, 2021 | December 31, 2020 | |||||||||||||
| Total Assets | 51,122 | 50,556 | ||||||||||||
| Total Equity | 8,426 | 6,735 | ||||||||||||
| Equity attributable to CNH Industrial N.V. | 8,393 | 6,651 | ||||||||||||
| Net Cash (Debt) of Continuing Operations | (15,840 | ) | (15,729 | ) | ||||||||||
| Net Cash (Debt) of Discontinued Operations | (1,480 | ) | (1,145 | ) | ||||||||||
| Net Cash (Debt) of CNH Industrial Pre-Demerger | (17,320 | ) | (16,874 | ) | ||||||||||
| of which Net Cash (Debt) of Industrial Activities(1) of Continuing Operations |
(1,374 | ) | (1,132 | ) | ||||||||||
| of which Net Cash (Debt) of Industrial Activities(1) of Discontinued Operations |
1,204 | 1,429 | ||||||||||||
| of which Net Cash (Debt) of Industrial Activities(1) of CNH Industrial Pre-Demerger |
(170 | ) | 297 | |||||||||||
| Net Income of Financial Services of Continuing Operations | 357 | 273 | ||||||||||||
| Net Income of Financial Services of Discontinued Operations | 71 | 15 | ||||||||||||
| Net Income of Financial Services of CNH Industrial Pre-Demerger | 428 | 288 | ||||||||||||
| (1)Thisitem is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Information” section of this press release for information regarding non-GAAP financial measures. |
|
|||||||||||||
| Net income (loss) reconciliation U.S. GAAP to EU-IFRS | ||||||||||||||
| ($ million) | ||||||||||||||
| Years ended December 31, | ||||||||||||||
|
|
2021 | 2020 | ||||||||||||
| Net income (loss) in accordance with U.S. GAAP |
1,760 | (438 | ) | |||||||||||
| Adjustments to conform with EU-IFRS: |
||||||||||||||
| Development costs |
3 | (192 | ) | |||||||||||
| Nikola investment fair value adjustment |
138 | (134 | ) | |||||||||||
| Other adjustments(1) |
(108 | ) | 64 | |||||||||||
| Tax impact on adjustments and other income tax differences |
(16 | ) | 5 | |||||||||||
| Total adjustments |
17 | (257 | ) | |||||||||||
| Profit (loss) in accordance with EU-IFRS |
1,777 | (695 | ) | |||||||||||
| (1)This item also includes the different accounting impacts from the modifications of a healthcare plan in the U.S. |
|
|||||||||||||
| Total Equity reconciliation U.S. GAAP to EU-IFRS | ||||||||||||||
| ($ million) | ||||||||||||||
| December 31, 2021 | December 31, 2020 | |||||||||||||
| Total Equity under U.S. GAAP | 6,808 | 4,989 | ||||||||||||
| Adjustments to conform with EU-IFRS: |
||||||||||||||
| Development costs |
2,058 | 2,193 | ||||||||||||
| Other adjustments |
28 | 34 | ||||||||||||
| Tax impact on adjustments and other income tax differences |
(468 | ) | (481 | ) | ||||||||||
| Total adjustments |
1,618 | 1,746 | ||||||||||||
| Total Equity under EU-IFRS | 8,426 | 6,735 | ||||||||||||
Translation of financial statements denominated in a currency other than the U.S. dollar
The principal exchange rates used to translate into U.S. dollars the financial statements prepared in currencies other than the U.S. dollar were as follows:
| Average 2021 | At December 31, 2021 | Average 2020 | At December 31, 2020 | |||||||||||||||||
| Euro |
0.845 | 0.883 | 0.876 | 0.815 | ||||||||||||||||
| Pound sterling |
0.727 | 0.742 | 0.779 | 0.733 | ||||||||||||||||
| Swiss franc |
0.914 | 0.912 | 0.937 | 0.880 | ||||||||||||||||
| Polish zloty |
3.860 | 4.059 | 3.890 | 3.716 | ||||||||||||||||
| Brazilian real |
5.392 | 5.571 | 5.160 | 5.194 | ||||||||||||||||
| Canadian dollar |
1.254 | 1.271 | 1.340 | 1.274 | ||||||||||||||||
| Turkish lira |
8.888 | 13.450 | 7.052 | 7.427 | ||||||||||||||||
| 24 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Condensed Consolidated Income Statement for the years ended December 31, 2021 and 2020
(Unaudited, EU-IFRS)
| Years Ended December 31, | ||||||||
| ($ million) | 2021 | 2020(*) | ||||||
| Net revenues |
19,474 | 14,696 | ||||||
| Cost of sales |
15,231 | 12,287 | ||||||
| Selling, general and administrative costs |
1,425 | 1,197 | ||||||
| Research and development costs |
677 | 634 | ||||||
| Result from investments: |
92 | 68 | ||||||
| Share of the profit/(loss) of investees accounted for using the equity method |
92 | 68 | ||||||
| Restructuring costs |
36 | 19 | ||||||
| Goodwill impairment loss |
- | 576 | ||||||
| Other income/(expenses)(1) |
(124 | ) | (82 | ) | ||||
| Financial income/(expenses) |
(151 | ) | (161 | ) | ||||
| PROFIT/(LOSS) BEFORE TAXES |
1,922 | (192 | ) | |||||
| Income tax (expense) benefit |
(236 | ) | (78 | ) | ||||
| PROFIT/(LOSS) FROM CONTINUING OPERATIONS |
1,686 | (270 | ) | |||||
| PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX |
91 | (425 | ) | |||||
| PROFIT/(LOSS) FOR THE PERIOD |
1,777 | (695 | ) | |||||
| PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO: |
||||||||
| Owners of the parent |
1,740 | (750 | ) | |||||
| Non-controlling interests |
37 | 55 | ||||||
| (in $) |
||||||||
| BASIC EARNINGS/(LOSS) PER COMMON SHARE |
1.28 | (0.55 | ) | |||||
| Basic earnings/(loss) per common share from continuing operations |
1.24 | (0.21 | ) | |||||
| DILUTED EARNINGS/(LOSS) PER COMMON SHARE |
1.28 | (0.55 | ) | |||||
| Diluted earnings/(loss) per common share from continuing operations |
1.23 | (0.21 | ) | |||||
Notes:
| (*) | The 2020 data have been re-presented following the classification of the Iveco Group Business as Discontinued Operations for the year ended December 31, 2021, as requested by the IFRS 5 - Non-current assets held for sale and discontinued operations. |
| (1) | In the year ended December 31, 2021, this item also includes the pre-tax gain of $100 million related to 2021 healthcare plan amendments in the U.S. |
CNH INDUSTRIAL PRE-DEMERGER
Condensed Consolidated Statement of Financial Position as of December 31, 2021 and 2020
(Unaudited, EU-IFRS)
| ($ million) | December 31, 2021 | December 31, 2020 | ||||||
| ASSETS |
||||||||
| Intangible assets |
5,159 | 4,832 | ||||||
| Property, plant and equipment and Leased assets |
3,435 | 7,392 | ||||||
| Inventories |
4,228 | 6,000 | ||||||
| Receivables from financing activities |
15,443 | 18,529 | ||||||
| Cash and cash equivalents |
5,845 | 9,629 | ||||||
| Other receivables and assets |
2,535 | 4,174 | ||||||
| Assets held for distribution(*) |
14,477 | - | ||||||
| TOTAL ASSETS |
51,122 | 50,556 | ||||||
| EQUITY AND LIABILITIES |
||||||||
| Issued capital and reserves attributable to owners of the parent |
8,393 | 6,651 | ||||||
| Non-controlling interests |
33 | 84 | ||||||
| Total Equity |
8,426 | 6,735 | ||||||
| Debt |
21,689 | 26,618 | ||||||
| Other payables and liabilities |
9,148 | 17,203 | ||||||
| Liabilities held for distribution(*) |
11,859 | - | ||||||
| Total Liabilities |
42,696 | 43,821 | ||||||
| TOTAL EQUITY AND LIABILITIES |
51,122 | 50,556 | ||||||
Notes:
| (*) | The assets and liabilities of Iveco Group Business have been classified as Assets held for distribution and Liabilities held for distribution within the Consolidated Statements of Financial Position at December 31, 2021, as requested by the IFRS 5 - Non-current assets held for sale and discontinued operations. |
| 25 |
|
|
PRESS RELEASE |
CNH INDUSTRIAL PRE-DEMERGER
Condensed Consolidated Statement of Cash Flows for the years ended December 31, 2021 and 2020
(Unaudited, EU-IFRS)
| ($ million) |
2021 | 2020(*) | ||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR |
9,629 | 5,773 | ||||||
| Profit/(loss) from Continuing Operations |
1,686 | (270 | ) | |||||
| Adjustment to reconcile profit/(loss) from Continuing Operation to cash flows from/(used in) operating activities from Continuing Operations |
989 | 3,111 | ||||||
| CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES FROM CONTINUING OPERATIONS |
2,675 | 2,841 | ||||||
| CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS |
638 | 637 | ||||||
| TOTAL |
3,313 | 3,478 | ||||||
| CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES FROM CONTINUING OPERATIONS |
(4,001 | ) | (541 | ) | ||||
| CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS |
(121 | ) | (33 | ) | ||||
| TOTAL |
(4,122 | ) | (574 | ) | ||||
| CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES FROM CONTINUING OPERATIONS |
(1,447 | ) | 1,002 | |||||
| CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS |
(104 | ) | (465 | ) | ||||
| TOTAL |
(1,551 | ) | 537 | |||||
| Translation exchange differences |
(407 | ) | 415 | |||||
| TOTAL CHANGE IN CASH AND CASH EQUIVALENTS |
(2,767 | ) | 3,856 | |||||
| Less: |
||||||||
| CASH AND EQUIVALENTS AT END OF THE YEAR – INCLUDED WITHIN ASSETS HELD FOR DISTRUBUTION AT THE END OF THE YEAR |
1,017 | - | ||||||
| CASH AND CASH EQUIVALENTS AT END OF THE YEAR |
5,845 | 9,629 |
Notes:
| (*) | The 2020 data have been re-presented following the classification of the Iveco Group Business as Discontinued Operations for the year ended December 31, 2021, as requested by the IFRS 5 - Non-current assets held for sale and discontinued operations. |
| 26 |
CNHI | FY & Q4 2021 Results Review February 8, 2022 Exhibit 99.2
Safe Harbor Statement and Disclosures All statements other than statements of historical fact contained in this presentation including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. Forward looking statements also include statements regarding the future performance of CNH Industrial and its subsidiaries on a standalone basis. These statements may include terminology such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “outlook”, “continue”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “prospects”, “plan”, or similar terminology. Forward-looking statements, including those related to the COVID-19 pandemic, are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: the continued uncertainties related to the unknown duration and economic, operational and financial impacts of the global COVID-19 pandemic and the actions taken or contemplated by governmental authorities or others in connection with the pandemic on our business, our employees, customers and suppliers; supply chain disruptions, including delays caused by mandated shutdowns, industry capacity constraints, material availability, and global logistics delays and constraints; disruption caused by business responses to COVID-19, including remote working arrangements, which may create increased vulnerability to cybersecurity or data privacy incidents; our ability to execute business continuity plans as a result of COVID-19; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products, including demand uncertainty caused by COVID-19; general economic conditions in each of our markets, including the significant economic uncertainty and volatility caused by COVID-19; travel bans, border closures, other free movement restrictions, and the introduction of social distancing measures in our facilities may affect in the future our ability to operate as well as the ability of our suppliers and distributors to operate; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; prices for agricultural commodities; housing starts and other construction activity; our ability to obtain financing or to refinance existing debt; price pressure on new and used vehicles; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, follow-on private litigation in various jurisdictions after the settlement of the EU antitrust investigation of the Iveco Group announced on July 19, 2016, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of CNH Industrial and its suppliers and dealers; security breaches with respect to our products; our pension plans and other post-employment obligations; further developments of the COVID-19 pandemic on our operations, supply chains, distribution network, as well as negative evolutions of the economic and financial conditions at global and regional levels; political and civil unrest; volatility and deterioration of capital and financial markets, including other pandemics, terrorist attacks in Europe and elsewhere; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing. Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are included in this presentation, which is available on our website at www.cnhindustrial.com. Forward-looking statements are based upon assumptions relating to the factors described in this earnings release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside CNH Industrial’s control. CNH Industrial expressly disclaims any intention or obligation to provide, update or revise any forward-looking statements in this announcement to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Further information concerning CNH Industrial, including factors that potentially could materially affect CNH Industrial’s financial results, is included in CNH Industrial’s reports and filings with the U.S. Securities and Exchange Commission (“SEC”), the Autoriteit Financiële Markten (“AFM”) and Commissione Nazionale per le Società e la Borsa (“CONSOB”).
24.3 2.3% 26.1 5.3% Net Sales of Industrial Activities, $bn Adj EBIT Margin, % CNH Industrial | Key Results 2.8 / 1.8% “New” CNH Industrial starting Jan 1, 2022 CNH Industrial through Dec 31, 2021 2.2 / (8.5)% 3.1 / 2.9% 11.0 8.2% 10.9 8.1% 14.7 12.3% 31.6 6.7% Free Cash Flow of Industrial Activities(1), $bn Adjusted EPS(1), $ (1) Non-GAAP measures (definition and reconciliation in appendix)
An Innovative, Sustainable, and Efficient Company Positioning for the future Spin-off M&A Price/Cost Workplace Safety
Fourth Quarter & Full Year | Financial Highlights (1) Non-GAAP measures (definition and reconciliation in appendix) Industrial Activities Net Sales % chg. y-o-y Net sales at $31.6bn, up 30% (28% at constant currency) with increases in all segments due to continued strong industry demand and price realization $8.6bn +6% $31.6 +30% Gross Margin % bps chg. y-o-y Gross profit up $2.2bn vs. 2020 and up $1.2bn vs 2019 Higher production and positive pricing offsetting raw material and supply chain cost Unfavorable mix in AG in Q4 2021, FPT down in sales and margin 16.8% (80)bps 17.9% +350bps Adjusted EBIT (1) $ chg. y-o-y Adjusted EBIT up $1.6bn, driven by profitability improvements in AG, CE and C&SV Adjusted EBIT margin at 6.7% up 440 bps for the year, down 180 bps vs Q4 2020 $401mn $(119)mn $2.1bn +$1.6bn Free Cash Flow (1) $ chg. y-o-y Free Cash Flow was positive $1.8bn due to the strong operating performance Industrial Activities net cash at $0.3bn, a decrease of $0.5bn from Sep 30, 2021 $1.8bn $(523)mn $1.8bn $(175)mn Consolidated Adjusted Diluted EPS (1) $ chg. y-o-y Adjusted Net Income $1.9bn (adjusted net income of $437mn in FY 2020 ) $1.35 Adj. diluted EPS, higher than any historical full year performance $0.25 $(0.05) $1.35 +1.07 Available Liquidity (1) $ chg. vs. previous period Available Liquidity at $12.1bn (liquidity on LTM revenues ratio at 36%) $12.1bn $(1.3)bn $12.1bn $(3.7)bn Board to propose an annual cash dividend of €0.28 per common share for AGM approval Q4 2021 FY 2021
Full Year 2021 | Financial Services Net Income ($mn) (**) RoA defined as: EBIT / average managed assets annualized Profitability Ratios Managed Portfolio (*) & Retail Originations (*) Delinquencies on Book (>30 Days) (*) Including unconsolidated JVs Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 Gross Margin / Average Assets on Book ROA (**) $26.6bn $26.7bn December 31, 2020 December 31, 2021 Retail Wholesale Operating Lease Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 FY 2021 FY 2020 FY ’21 retail originations at $11.4bn, up $1.4bn compared to December 31, 2020 Managed portfolio* at $26.7bn, relatively flat compared to December 31, 2020 (up $1.2bn on a constant currency basis)
Full Year 2021| Net Industrial Cash, Free Cash Flow Change in Working Capital TRADE RECEIVABLES INVENTORIES TRADE PAYABLES OTHER CHG IN WORKING CAPITAL FY 2021 FY 2020 Cash inflow Cash outflow (58) ($mn) ($mn) Net (Debt) / Cash and Free Cash Flow by quarter Industrial Activities (*) Net (Debt) / Cash IA ($bn) Free Cash Flow IA ($bn) 0.3 1.8 786 2,993 (559) (58) 94 (706) (13) (188) (2,061) 288 Dec 31, 2020 IA | ADJ EBITDA CASH INTEREST AND TAXES CHANGE IN WORKING CAPITAL CHANGE IN PROVISIONS & OTHERS (1) PP&E CAPEX (2) OTHER CHANGES DIVIDENDS & EQUITY CHANGES FX & OTHER Dec 31, 2021 Free cash flow of Industrial Activities (*) 1,751 o/w $2.3bn M&A activity (*) Non-GAAP measures (reconciliation in appendix) (1) Including other cash flow items related to operating lease and buy-back activities. (2) Excluding assets sold under buy-back commitments and assets under operating leases.
CNHI excluding Iveco Group FY & Q4 2021 – Pro Forma
Financial Summary (Pro Forma) (1) Q4 2021 FY 2021 FY 2020 FY 2019 Pro Forma Combined Off-Highway Business (under U.S. GAAP) Revenues ($mn) 5,480 19,496 14,779 15,535 Financial Services 478 1,672 1,660 1,789 Net Sales | Industrial Activities ($mn) 4,994 17,802 13,083 13,708 Agriculture 4,150 14,721 10,923 10,959 Construction 844 3,081 2,170 2,768 Net Income (Loss) ($mn) 464 1,801 (198) 797 Net Income (Loss) attributable to Controlling interest 462 1,792 (212) 785 Diluted EPS ($) 0.34 1.32 (0.16) 0.58 Non – GAAP (2) Adjusted EBIT | Industrial Activities ($mn) 378 1,763 583 878 Agriculture 414 1,810 880 897 Construction 20 90 (184) 51 Adjusted EBIT Margin | Industrial Activities (%) 7.6% 9.9% 4.5% 6.4% Adjusted Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates ($mn) 444 2,036 690 1,016 Adjusted Net Income ($mn) 408 1,747 586 876 Adjusted net income attributable to Controlling interest 406 1,738 572 864 Adjusted Diluted EPS ($) 0.30 1.28 0.42 0.64 Free Cash Flow | Industrial Activities ($mn) 1,225 1,928 2,088 (58) Dec 31, 2021 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Net Industrial Cash (Debt) ($mn) (1,126) (1,126) (893) (2,575) Available Liquidity ($mn) 10,521 10,521 13,884 9,241 Note: All figures are provided herein on a US GAAP $ basis unless otherwise indicated and are pro forma unaudited (1) Basis of presentation included in reconciliations section (2) Non-GAAP measures (definition and reconciliation in reconciliations section)
(354) 2021 | Ind. Activities Adj EBIT walk by driver (Pro Forma) (1) 583 949 1,280 (790) (166) (141) 73 (25) 1,763 Adj. EBIT (2) FY20 VOL & MIX PRICING NET PROD COST SG&A R&D FX | OTHER UNALLOCATED, ELIM & OTHER Adj. EBIT (2) FY21 9.9% 4.5% Note: Numbers may not add due to rounding Note | p.p. change vs. FY 2020 FY Q4 102 445 (406) (62) (40) 6 VOL & MIX PRICING NET PROD COST SG&A R&D FX | OTHER AG CE 823 126 1,005 275 (94) (23) (131) (10) 71 2 22.4% +3.3pp 12.3% +4.2pp 12.7% +9.0pp 2.9% +11.4pp Gross Margin Adj EBIT % (696) (143) AG CE 98 4 374 71 (52) (9) (38) (2) 7 (1) 20.3% (0.7)pp 10.0% (1.1)pp 12.3% +1.1pp 2.4% +1.1pp (53) Gross Margin Adj EBIT % (1) Basis of presentation included in reconciliations section (2) Non-GAAP measures (definition and reconciliation in reconciliations section)
Full Year 2021 | FCF, Net Industrial (Debt), Debt Maturity Profile (1) (893) 2,058 (376) 248 395 (360) (37) (188) (1,973) (1,126) Dec 31, 2020 IA | ADJ EBITDA CASH INTEREST AND TAXES CHANGE IN WORKING CAPITAL CHANGE IN PROVISIONS & OTHERS PP&E CAPEX OTHER CHANGES DIVIDENDS & EQUITY CHANGES FX & OTHER Dec 31, 2021 Free cash flow of Industrial Activities (*) 1,928 ($mn) o/w $2.3bn M&A activity Debt Maturity Profile 10.5 2.5 2.4 2.3 1.0 1.8 2.0 Dec-end ’21 2022 2023 2024 2025 2026 Beyond Available Liquidity (***) ($bn) Undrawn M/T unsecured Committed Lines Cash Bank Debt Capital Market Other (*) Non-GAAP measures (reconciliation in appendix) (**) Represents cash portion of debt maturities as of Dec 31st , 2021 (***) Of which $0.8bn Restricted Cash Net (Debt) / Cash and FCF 2019-2021 Industrial Activities Net (Debt) / Cash IA ($bn) Free Cash Flow IA ($mn) Debt Maturity Schedule (**) ($12.0bn) (1) Basis of presentation included in reconciliations section
A Simpler and Stronger Company with a Laser Focus on Execution Differentiated, Customer Focused Technology Capabilities On-Highway Vehicles & Equipment CEO | Remarks Note: Augmenta, Monarch Tractor and Bennamann Ltd. are not controlled companies.
FY 2021 | Unit Performances vs. FY 2020 NOTE: Total Industry Volume % change FY 2021 vs. FY 2020 reflecting aggregate for key markets where Company competes. Regional split definition in Appendix * YoY change for orders to be built as of end of December 2021 North America Europe South America Rest of World Worldwide Tractors 10% 16% 22% 15% 14% 23% Combines 25% 17% 19% 19% 19% Light 24% 18% 72% 0% 13% Heavy 17% 21% 96% 10% 16% 0-140 HP 140+ HP TRACTORS COMBINES LIGHT Heavy COMPANY INVENTORY DEALER INVENTORY RETAIL PRODUCTION Industry Company Up 2.1x Order Book* Up 1.5x Order Book* Up 2.4x Order Book* Up 2.4x Order Book*
Full Year 2022E | Industry Unit vs. FY 2021 (Estimates) North America Europe South America Rest of World Worldwide Tractors Flat Flat - 5% Flat - 5% (5%) - Flat Flat ~15% Combines ~10% Flat - 5% Flat - 5% Flat - 5% Flat - 5% Light Flat - 5% Flat - 5% Flat - 5% (10%) - (5%) (5%) - Flat Heavy Flat - 5% Flat - 5% Flat - 5% (10%) - (5%) (10%) - (5%) 0-140 HP 140+ HP NOTE: Total Industry Volume % change FY 2022E vs. FY 2021 reflecting aggregate for key markets where Company competes Regional split definition in Appendix
Full Year 2022E | Initial Guidance Guidance Industrial Activities Net Sales (*) (including currency translation effects) Up 10 - 14% SG&A ≤ 7.5% of Net Sales Free Cash Flow Positive in excess of ~$1.0bn R&D At ~ $1.4bn Capex (*) Net Sales outlook reflecting €/$ at 1.20 This guidance assumes no further significant disruptions due to lockdown policies in main jurisdictions H1 ’22E to remain impacted by supply chain constraints
CNHI | CMD – SAVE THE DATE CNH Capital Markets Day February 22, 2022 11am – 4pm EST Miami Beach, Florida Presentations by members of the Senior Leadership Team Q&A session Product / Technology exhibits Live webcast will begin at: 12 p.m. EST / 5 p.m. GMT / 6 p.m. CET Join us to see what we have in store for the future
Appendix
Fourth Quarter 2021 | Financials by Segment REVENUES GROSS PROFIT Adj. EBIT Adj. EBIT Margin % D&A Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 AG 4,150 3,425 844 718 414 379 10.0% 11.1% 66 61 CE 844 752 104 84 20 10 2.4% 1.3% 11 12 C&SV 3,256 3,290 386 415 55 110 1.7% 3.3% 119 150 PT 945 1,204 96 190 23 110 2.4% 9.1% 30 32 E&O (643) (636) 6 8 (111) (89) - - IA 8,552 8,035 1,436 1,415 401 520 4.7% 6.5% 226 255 FS 533 485 190 147 E&O (13) (19) - - Total 9,072 8,501 1,626 1,562 Note: Adj EBIT and Adj EBIT Margin % are Non-GAAP measures (definition and reconciliation in appendix) All numbers reported in US GAAP and USD, C&SV and PT will report in IFRS and EUR under Iveco Group
Fourth Quarter 2021 | Net Sales and Adj EBIT breakdown Note: Adj EBIT is a Non-GAAP measures (definition and reconciliation in appendix) Net Sales Split IA | Adj. EBIT Walk Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 NA 1,489 1,132 NA 445 361 NA n.m. n.m. NA 52 35 EU 1,269 1,241 EU 127 140 EU 2,611 2,684 EU 636 833 SA 761 511 SA 142 99 SA 323 201 SA 87 62 RoW 631 541 RoW 130 152 RoW 294 376 RoW 170 274 Tractors 53% 61% Heavy 42% 46% Trucks 72% 67% Engines 88% 90% Combines 26% 20% Light 54% 51% Buses 19% 22% Transm. 2% 1% Others 21% 19% Others 4% 3% Others 9% 11% Axles 10% 9% (*) PT Pricing net within Volume & Mix Adj. EBIT (1) Q4 20 VOL & MIX PRICING NET PROD COST SG&A R&D FX | OTHER UNALLOCATED, ELIM & OTHER Adj. EBIT (1) Q4 21 IA 520 40 540 (539) (83) (72) 17 (22) 401 AG 379 98 374 (354) (53) (38) 7 414 CE 10 4 71 (52) (9) (2) (1) 20 C&SV 110 (2) 94 (106) (20) (38) 16 55 PT (*) 110 (60) (27) (1) 5 (5) 23 AG CE C&SV PT Note: Numbers may not add due to rounding All numbers reported in US GAAP and USD, C&SV and PT will report in IFRS and EUR under Iveco Group
FY 2021 | Financials by Segment REVENUES GROSS PROFIT Adj. EBIT Adj. EBIT Margin % D&A FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 AG 14,721 10,923 3,295 2,087 1,810 880 12.3% 8.1% 255 250 CE 3,081 2,170 392 81 90 (184) 2.9% (8.5%) 38 46 C&SV 12,160 9,421 1,418 835 282 (109) 2.3% (1.2%) 465 493 PT 4,419 3,629 567 480 256 233 5.8% 6.4% 119 120 E&O (2,759) (1,858) (1) 12 (324) (268) - - IA 31,622 24,285 5,671 3,495 2,114 552 6.7% 2.3% 879 911 FS 1,870 1,823 724 615 E&O (64) (76) - - Total 33,428 26,032 6,395 4,110 Note: Adj EBIT and Adj EBIT Margin % are Non-GAAP measures (definition and reconciliation in appendix) Note: Numbers may not add due to rounding All numbers reported in US GAAP and USD, C&SV and PT will report in IFRS and EUR under Iveco Group
FY 2021 | Net Sales and Adj EBIT breakdown Note: Adj EBIT is a Non-GAAP measures (definition and reconciliation in appendix) Net Sales Split IA | Adj. EBIT Walk FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 FY 20 NA 5,123 3,794 NA 1,439 961 NA n.m. n.m. NA 177 111 EU 4,715 3,854 EU 570 417 EU 9,631 7,628 EU 3,038 2,446 SA 2,350 1,486 SA 501 321 SA 1,095 572 SA 355 178 RoW 2,533 1,789 RoW 571 471 RoW 1,330 1,141 RoW 849 894 Tractors 56% 58% Heavy 45% 46% Trucks 78% 72% Engines 89% 91% Combines 24% 21% Light 51% 50% Buses 15% 20% Transm. 2% 1% Others 20% 21% Others 4% 4% Others 7% 8% Axles 9% 8% (*) PT Pricing net within Volume & Mix Adj. EBIT (1) FY 20 VOL & MIX PRICING NET PROD COST SG&A R&D FX | OTHER UNALLOCATED, ELIM & OTHER Adj. EBIT (1) FY 21 IA 552 1,561 1,525 (1,075) (281) (278) 167 (56) 2,114 AG 880 823 1,005 (696) (143) (131) 71 1,810 CE (184) 126 275 (94) (23) (10) 2 90 C&SV (109) 456 244 (193) (91) (109) 83 282 PT (*) 233 156 (92) (24) (28) 11 256 AG CE C&SV PT Note: Numbers may not add due to rounding All numbers reported in US GAAP and USD, C&SV and PT will report in IFRS and EUR under Iveco Group
Capex and R&D (1) (1) Excluding assets sold under buy-back commitments and assets under operating leases FY 2021 FY 2020 Investments in property, plant and equipment, and intangible assets (1) 706 481 Breakdown by Category NEW PRODUCT & TECHNOLOGY 39% 47% MAINTENANCE & OTHER 49% 51% INDUSTRIAL CAPACITY EXPANSION & LT INVESTMENTS 12% 2% Breakdown by Segment AGRICULTURE 43% 39% CONSTRUCTION 8% 9% COMMERCIAL & SPECIALTY VEHICLES 31% 33% POWERTRAIN 18% 19% Research and Development 1,236 932 Total spending (Capex + R&D) in new products 1,080 743 Breakdown by Trend DIGITALIZATION; ELECTRIFICATION; AUTONOMOUS & TELEMATICS 49% 54% REGULATORY 16% 20% OTHER NEW PRODUCTS 35% 26% ($mn) All numbers reported in US GAAP and USD, C&SV and PT will report in IFRS and EUR under Iveco Group
Debt Maturity Schedule | Breakdown Note: Numbers may not add due to rounding ($mn) Outstanding Dec 31, 2021 2022 2023 2024 2025 2026 Beyond 2.8 Bank Debt 1.7 0.4 0.4 0.1 0.1 0.1 9.7 Capital Market 1.3 2.0 1.9 0.9 1.7 1.9 0.2 Other Debt 0.2 0.0 0.0 0.0 0.0 0.0 12.7 Cash Portion of (Debt) Maturities 3.2 2.4 2.3 1.0 1.8 2.0 of which Industrial Activities 0.2 1.0 0.9 0.8 0.6 1.9 of which Financial Services 3.0 1.4 1.4 0.2 1.2 0.1 6.9 Cash & Cash Equivalents 0.9 of which restricted cash 0.1 Other Current Financial Assets (1) 5.2 Undrawn Committed credit lines 12.1 Total Available Liquidity (1) This item includes short-term deposits and investments towards high-credit rating counterparties
Reconciliations
Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) In the three months ended December 31, 2021, this item includes the pre-tax gain of $29 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. In the three months ended December 31, 2021 this item also includes a pre-tax gain of $5 million as a result of the amortization over 4 years of the $101 million positive impact from 2021 modifications of a healthcare plan in the U.S. In the three months ended December 31, 2021, this item also includes $146 million separation and transaction costs incurred in connection with the spin-off of the Iveco Group Business (the Demerger), a charge of $51 million for transaction costs related to the acquisition of Raven, as well as a gain of $12 million for a fair value adjustment of Monarch investment and a loss of $25 million due to the valuation at their recoverable amount of certain assets classified as held for sale. ($mn) Q4 2021 AG CE CV PT Unallocated Items, Elim. & Other Industrial Activities Consolidated Net income 307 Less: Consolidated Income tax (expense) benefit 82 Consolidated Income before taxes 225 Less: Financial Services Financial Services Net income 112 Financial Services Income taxes 23 Add back of the following Industrial Activities items: Interest expenses, net of interest income and eliminations 55 Foreign exchange (gains) losses, net 21 Finance and non-service component of Pension and other post-employment benefit costs (1) (37) Adjustments for the following Industrial Activities items: Restructuring expenses 12 2 28 - - 42 Other discrete items (2) - - - - 210 210 Nikola investment fair value adjustment - - - - 20 20 Adjusted EBIT of Industrial Activities 414 20 55 23 (111) 401 All numbers reported in US GAAP and USD, C&SV and PT will report in IFRS and EUR under Iveco Group
Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) ($mn) Q4 2020 AG CE CV PT Unallocated Items, Elim. & Other Industrial Activities Consolidated Net income 187 Less: Consolidated Income tax (expense) benefit (28) Consolidated Income before taxes 215 Less: Financial Services Financial Services Net income 60 Financial Services Income taxes 9 Add back of the following Industrial Activities items: Interest expenses, net of interest income and eliminations 63 Foreign exchange (gains) losses, net 23 Finance and non-service component of Pension and other post-employment benefit costs (1) 99 Adjustments for the following Industrial Activities items: Restructuring expenses 4 4 7 15 - 30 Other discrete items (2) - - 24 - 1 25 Nikola investment fair value adjustment - - - - 134 134 Adjusted EBIT of Industrial Activities 379 10 110 110 (89) 520 In the three months ended December 31, 2020, this item includes the pre-tax gain of $29 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. In the three months ended December 31, 2020 this item also included a pre-tax non-cash settlement charge of $124 million resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations. In the three months ended December 31, 2020, this item included the negative impact from the costs recognized by a Chinese joint venture, accounted for under the equity method, for valuation allowances against deferred tax assets and restructuring actions. All numbers reported in US GAAP and USD, C&SV and PT will report in IFRS and EUR under Iveco Group
Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) ($mn) FY 2021 AG CE CV PT Unallocated Items, Elim. & Other Industrial Activities Consolidated Net income 1,760 Less: Consolidated Income tax (expense) benefit (342) Consolidated Income before taxes 2,102 Less: Financial Services Financial Services Net income 420 Financial Services Income taxes 125 Add back of the following Industrial Activities items: Interest expenses, net of interest income and eliminations 235 Foreign exchange (gains) losses, net 51 Finance and non-service component of Pension and other post-employment benefit costs (1) (141) Adjustments for the following Industrial Activities items: Restructuring expenses 20 15 37 2 - 74 Other discrete items (2) - - (55) - 255 200 Nikola investment fair value adjustment - - - - 138 138 Adjusted EBIT of Industrial Activities 1,810 90 282 256 (324) 2,114 In the years ended December 31, 2021, this item includes the pre-tax gain of $119 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. In the year ended December 31, 2021, this item also includes a pre-tax gain of $5 million as a result of the amortization over 4 years of the $101 million positive impact from 2021 modifications of a healthcare plan in the U.S. In the year ended December 31, 2021, this item includes the pre- and after-tax gain of $42 million from the sale of the 30.1% interest in Naveco, as well as the positive impact of $13 million from the sale of investments by a joint venture accounted for under the equity method, presented in column “Commercial and Specialty Vehicles”. This item also includes $185 million separation and transaction costs in connection with the spin-off of the Iveco Group Business (the Demerger), a charge of $57 million for transaction costs related to the acquisition of Raven, as well as a gain of $12 million for a fair value adjustment of Monarch investment and a loss of $25 million due to the valuation at their recoverable amount of certain assets classified as held for sale. All numbers reported in US GAAP and USD, C&SV and PT will report in IFRS and EUR under Iveco Group
Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) ($mn) FY 2020 AG CE CV PT Unallocated Items, Elim. & Other Industrial Activities Consolidated Net income (loss) (438) Less: Consolidated Income tax (expense) benefit 50 Consolidated Income (loss) before taxes (488) Less: Financial Services Financial Services Net income 249 Financial Services Income taxes 83 Add back of the following Industrial Activities items: Interest expenses, net of interest income and eliminations 244 Foreign exchange (gains) losses, net 45 Finance and non-service component of Pension and other post-employment benefit costs (1) 14 Adjustments for the following Industrial Activities items: Restructuring expenses 13 9 11 16 - 49 Goodwill impairment charge - - - - 585 585 Other discrete items (2) 176 72 313 - 8 569 Nikola investment fair value adjustment - - - - (134) (134) Adjusted EBIT of Industrial Activities 880 (184) (109) 233 (268) 552 In the years ended December 31, 2020, this item includes the pre-tax gain of $119 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. In the year ended December 31, 2020 this item also included a pre-tax non-cash settlement charge of $124 million resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations. In the year ended December 31, 2020, this item mainly includes impairment of intangible and other long-lived assets, asset optimization charges, and the negative impact from the costs recognized by a Chinese joint venture, accounted for under the equity method, for valuation allowances against deferred tax assets and restructuring actions. All numbers reported in US GAAP and USD, C&SV and PT will report in IFRS and EUR under Iveco Group
Reconciliation of Total Debt to Net Debt (US GAAP) Consolidated Industrial Activities Financial Services ($mn) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Third party debt (23,745) (26,053) (5,365) (7,271) (18,380) (18,782) Intersegment notes payable - - (798) (1,017) (1,055) (856) Total (Debt) (1) (23,745) (26,053) (6,163) (8,288) (19,435) (19,638) Cash and cash equivalents 6,006 8,785 5,190 8,017 816 768 Restricted cash 856 844 146 99 710 745 Intersegment notes receivable - - 1,055 856 798 1,017 Other current financial assets(2) 63 94 63 94 - - Derivatives hedging debt (3) 8 (3) 8 - - Net Cash (Debt) (3) (16,823) (16,322) 288 786 (17,111) (17,108) Total (Debt) of Industrial Activities includes Intersegment notes payable to Financial Services of $798 million and $1,017 million as of December 31, 2021 and 2020, respectively. Total (Debt) of Financial Services includes Intersegment notes payable to Industrial Activities of $1,055 million and $856 million as of December 31, 2021 and 2020, respectively. This item includes short-term deposits and investments towards high-credit rating counterparties. The net intersegment receivable/(payable) balance recorded by Financial Services relating to Industrial Activities was $(257) million and $161 million as of December 31, 2021 and 2020, respectively.
Reconciliation of Cash and cash equivalents to Available liquidity under U.S.-GAAP ($mn) December 31, 2021 December 31, 2020 Cash and cash equivalent 6,006 8,785 Restricted cash 856 844 Undrawn committed facilities 5,224 6,148 Other current financial assets(1) 63 94 Available liquidity 12,149 15,871 (1) This item includes short-term deposits and investments towards high-credit rating counterparties Fourth Quarter 2021
Reconciliation of Net cash provided by (used in) Operating Activities to Free cash flow of Industrial Activities under U.S. GAAP ($mn) Q4 2021 Q4 2020 FY 2021 FY 2020 Net cash provided by (used in) Operating Activities 2,190 2,766 4,082 5,529 Less: Cash flows from Operating Activities of Financial Services net of eliminations 94 256 (975) (2,214) Change in derivatives hedging debt of Industrial Activities and other 99 (24) 91 (15) Investments in assets sold under buy-back commitments and operating lease assets of Industrial Activities (217) (354) (728) (687) Operating cash flow of Industrial Activities 2,166 2,644 2,470 2,613 Investments in property, plant and equipment, and intangible assets of Industrial Activities (345) (253) (706) (481) Other changes (1) 21 (26) (13) (206) Free cash flow of Industrial Activities 1,842 2,365 1,751 1,926 (1) This item primarily includes change in intersegment financial receivables and capital increases in intersegment investments Fourth Quarter 2021
Fourth Quarter 2021 Reconciliation of Adj. net income and Adj. income tax (expense) benefit to Net Income (loss) and Income tax (expense) benefit and calculation of Adj. diluted EPS and Adj. ETR under U.S.GAAP ($mn) FY 2021 FY 2020 Q4 2021 Q4 2020 1,760 (438) Net income (loss) 307 187 311 1,051 Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) 240 261 (13) 24 Adjustments impacting Equity in income of unconsolidated subsidiaries and affiliates - 24 (178) (200) Adjustments impacting Income tax (expense) benefit (b) (200) (40) 1,880 437 Adjusted net income (loss) 347 432 1,843 379 Adjusted net income (loss) attributable to CNH Industrial N.V. 342 409 1,361 1,352 Weighted average shares outstanding – diluted (million) 1,363 1,353 1.35 0.28 Adjusted diluted EPS ($) 0.25 0.30 1,980 (505) Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates 196 230 311 1,051 Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) 240 261 2,291 546 Adjusted income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (A) 436 491 (342) 50 Income tax (expense) benefit 82 (28) (178) (200) Adjustments impacting Income tax (expense) benefit (b) (200) (40) (520) (150) Adjusted income tax (expense) benefit (B) (118) (68) 23% 27% Adjusted Effective Tax Rate (Adjusted ETR) (C=B/A) 27% 14%
Fourth Quarter 2021 ($mn) Reconciliation of Adj. net income and Adj. income tax (expense) benefit to Net Income (loss) and Income tax (expense) benefit and calculation of Adj. diluted EPS and Adj. ETR under U.S.GAAP FY 2021 FY 2020 Q4 2021 Q4 2020 (a) Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates 138 (134) Nikola investment fair value adjustment 20 134 74 49 Restructuring expenses 42 30 8 - Loss on repurchase of notes - - (119) (119) Pre-tax gain related to the 2008 modification of a healthcare plan in the U.S. (29) (29) (5) - Pre-tax gain related to the 2021 modifications of a healthcare plan in the U.S. (5) - - 125 Pre-tax settlement charge related to the purchase of annuity contracts to settle a portion of U.S. pension obligations - 125 - 585 Goodwill impairment charge - - - 255 Other assets impairment charges - - - 282 Optimization charges on asset portfolio relating to vehicles sold under buy-back commitments - - 187 8 Spin-off costs 148 1 (42) - Gain from the sale of 30.1% interest in Naveco - - 57 - Transaction costs for Raven acquisition 51 - (12) - Monarch investment fair value adjustment (12) - 25 - Impairment of certain assets held for sale 25 - - - Other discrete items - - 311 1,051 Total 240 261 (b) Adjustments impacting Income tax (expense) benefit (7) (106) Tax effect of adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (16) (32) (161) (82) Adjustment to valuation allowances on deferred tax assets (161) - (10) (12) Other (23) (8) (178) (200) Total (200) (40)
Basis of the Presentation The unaudited pro forma financial information provided in this presentation has been prepared to represent the combined historical results of operations, financial position and cash flows of the Off-Highway Business structure that will be controlled by CNH Industrial N.V. following the Demerger. The unaudited pro forma financial information presented excludes the Iveco Group financial information for all periods presented. This financial information has been derived from the consolidated financial statements and accounting records of CNH Industrial N.V.. The receivables/payables between CNH Industrial and Iveco Group primarily represent overdraft and advances/utilizations under cash management and/or cash pooling arrangements and loans granted by CNH Industrial central treasury. Beginning with first quarter of 2022, the Iveco Group's financial results for periods prior to the Demerger will be reflected in CNH Industrial N.V. consolidated statement of income, retrospectively, as discontinued operations. Additionally, the related assets and liabilities associated with the discontinued operations in the prior year consolidated balance sheet will be classified as discontinued operations. The unaudited pro forma financial information (1) is presented based on information currently available, (2) is intended for informational purposes only, (3) is not necessarily indicative of and do not purport to represent what the Off-Highway operating results would have been had the Demerger occurred as described or what the future operating results will be after giving effect to the Demerger and (4) does not reflect any actions that might be taken by management after the Demerger.
Net Income (Loss) to Adj. EBIT of Industrial Activities by Segment FY 2021 U.S. GAAP ($mn) Unaudited AG CE Unallocated Items, Elim. & Other Total Pro forma Combined Net income (loss) - - - 1,801 Less: Consolidated Income tax (expense) benefit - - - (229) Pro forma Combined Income (loss) before taxes - - - 2,030 Less: Financial Services Financial Services Net income - - - 349 Financial Services Income taxes - - - 107 Add back of the following Industrial Activities items: Interest expenses, net of interest income and eliminations - - - 118 Foreign exchange (gains) losses, net - - - 1 Finance and non-service component of Pension and other post-employment benefit costs (1) - - - (143) Adjustments for the following Industrial Activities items: Restructuring expenses 20 15 - 35 Other discrete items (2) - - 178 178 Adjusted EBIT of Industrial Activities 1,810 90 (137) 1,763 In the years ended December 31, 2021, and 2020, this item includes the pre-tax gain of $119 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from 2018 modification of a healthcare plan in the U.S. In the year ended December 31, 2021, this item also includes a pre-tax gain of $5 million as a result of the amortization over 4 years of the $101 million positive impact from 2021 modification of a healthcare plan in the U.S. In the years ended December 31, 2020, this item also included a pre-tax non-cash settlement charge of $124 million resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations. In the year ended December 31, 2021, this item includes $133 million separation and transaction costs in connection with the spin-off of the Iveco Group Business (the Demerger), a charge of $57 million for transaction costs related to the acquisition of Raven, as well as a gain of $12 million for a fair value adjustment of Monarch investment. In the year ended December 31, 2020, this item mainly includes impairment of intangible and other long-lived assets..
Net Income (Loss) to Adj. EBIT of Industrial Activities by Segment This item includes the pre-tax gain of $119 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of a healthcare plan in the U.S. This item also includes a pre-tax non-cash settlement charge of $124 million resulting from the purchase of annuity contracts to settle a portion of the outstanding U.S. pension obligations. This item mainly includes impairment of intangible and other long-lived assets, asset optimization charges. FY 2020 U.S. GAAP ($mn) Unaudited AG CE Unallocated Items, Elim. & Other Total Pro forma Combined Net income (loss) - - - (198) Less: Consolidated Income tax (expense) benefit - - - (85) Pro forma Combined Income (loss) before taxes - - - (113) Less: Financial Services Financial Services Net income - - - 243 Financial Services Income taxes - - - 85 Add back of the following Industrial Activities items: Interest expenses, net of interest income and eliminations - - - 140 Foreign exchange (gains) losses, net - - - 12 Finance and non-service component of Pension and other post-employment benefit costs (1) - - - 9 Adjustments for the following Industrial Activities items: Restructuring expenses 13 9 - 22 Goodwill impairment charge - - 585 585 Other discrete items (2) 176 72 8 256 Adjusted EBIT of Industrial Activities 880 (184) (113) 583
Net Income (Loss) to Adj. EBIT of Industrial Activities by Segment This item includes the pre-tax gain of $119 million as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the modification of a healthcare plan in the U.S. This item also includes a $112 million pre-tax non-cash settlement charge resulting from the purchase of a group annuity contract to settle a portion of the outstanding U.S. pension obligations FY 2019 U.S. GAAP ($mn) Unaudited AG CE Unallocated Items, Elim. & Other Total Pro forma Combined Net income - - - 797 Less: Consolidated Income tax (expense) benefit - - - (159) Pro forma Combined Income before taxes - - - 956 Less: Financial Services Financial Services Net income - - - 274 Financial Services Income taxes - - - 87 Add back of the following Industrial Activities items: Interest expenses, net of interest income and eliminations - - - 170 Foreign exchange (gains) losses, net - - - 2 Finance and non-service component of Pension and other post-employment benefit costs (1) - - - 46 Adjustments for the following Industrial Activities items: Restructuring expenses 41 18 1 60 Other discrete items - - 5 5 Adjusted EBIT of Industrial Activities 897 51 (70) 878
FY 2021 – FY 2020 – FY 2019 Reconciliation of Adj. net income and Adj. income tax to Net Income (loss) and Income tax (expense) benefit and calculation of Adj. diluted EPS and Adj. ETR under U.S.GAAP U.S. GAAP ($mn) Unaudited FY 2021 FY 2020 FY 2019 Pro forma Combined Net income (loss) 1,801 (198) 797 Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) 97 869 92 Adjustments impacting Income tax (expense) benefit (b) (151) (85) (13) Adjusted net income 1,747 586 876 Adjusted net income attributable to CNH Industrial N.V. 1,738 572 864 Weighted average shares outstanding – diluted (million) 1,361 1,352 1,354 Adjusted Diluted EPS ($) 1.28 0.42 0.64 Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates 1,939 (179) 924 Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (a) 97 869 92 Adjusted income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates (A) 2,036 690 1,016 Income tax (expense) benefit (229) (85) (159) Adjustments impacting Income tax (expense) benefit (b) (151) (85) (13) Adjusted income tax (expense) benefit (B) (380) (170) (172) Adjusted Effective Tax Rate (Adjusted ETR) (C=B/A) 19% 25% 17%
FY 2021 – FY 2020 – FY 2019 Reconciliation of Adj. net income and Adj. income tax to Net Income (loss) and Income tax (expense) benefit and calculation of Adj. diluted EPS and Adj. ETR under U.S.GAAP U.S. GAAP ($mn) Unaudited FY 2021 FY 2020 FY 2019 (a) Adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates Restructuring expenses 35 22 63 Loss on repurchase of notes 8 - 27 Pre-tax gain related to the 2008 modification of a healthcare plan in the U.S. (119) (119) (119) Pre-tax gain related to the 2021 modifications of a healthcare plan in the U.S. (5) - - Pre-tax settlement charge related to the purchase of annuity contracts to settle a portion of U.S. pension obligations - 125 116 Goodwill impairment charge - 585 - Other assets impairment charges - 248 - Spin-off costs 133 8 5 Transaction costs for Raven acquisition 57 Monarch investment fair value adjustment (12) Other discrete items - - - Total 97 869 92 (b) Adjustments impacting Income tax (expense) benefit Tax effect of adjustments impacting Income (loss) before income tax (expense) benefit and equity in income of unconsolidated subsidiaries and affiliates 13 (44) (9) Adjustment to valuation allowances on deferred tax assets (161) (40) - Other (3) (1) (4) Total (151) (85) (13)
FY 2021 – FY 2020 – FY 2019 FY 2021 FY 2020 FY 2019 Net cash provided by (used in) Operating Activities 3,198 4,189 995 Less: Cash flows from Operating Activities of Financial Services net of eliminations (947) (1,855) (747) Change in derivatives hedging debt of Industrial Activities and other 93 9 7 Investments in assets sold under buy-back commitments and operating lease assets of Industrial Activities (19) (16) (10) Operating cash flow of Industrial Activities 2,325 2,327 245 Investments in property, plant and equipment, and intangible assets of Industrial Activities (360) (229) (287) Other changes (1) (37) (10) (16) Free Cash Flow of Industrial Activities 1,928 2,088 (58) Reconciliation of Net cash provided by (used in) Operating Activities to Free Cash Flow of Industrial Activities under U.S. GAAP U.S. GAAP ($mn) Unaudited (1) This item primarily includes change in intersegment financial receivables and capital increases in intersegment investments.
Full Year 2021 | Total (Debt) To Net (Debt) Consolidated Industrial Activities Financial Services U.S. GAAP ($mn) Unaudited December 31, 2021 December 31, 2020 December 31, 2019 December 31, 2021 December 31, 2020 December 31, 2019 December 31, 2021 December 31, 2020 December 31, 2019 Third party debt (20,897) (22,932) (21,612) (5,335) (7,233) (5,167) (15,562) (15,699) (16,445) Intersegment notes payable - - - (150) (501) (646) (181) (322) (411) Financial Payables vs. On-Highway (3,986) (4,348) (3,815) (3,764) (4,169) (3,679) (222) (179) (136) Total (Debt) (1) (24,883) (27,280) (25,427) (9,249) (11,903) (9,492) (15,965) (16,200) (16,992) Cash and cash equivalents 5,044 8,199 4,455 4,386 7,507 4,111 658 692 344 Restricted cash 801 788 850 128 85 111 673 703 739 Intersegment notes receivable - - - 181 322 411 150 501 646 Financial Receivables vs. On-Highway 3,484 3,146 2,313 3,430 3,078 2,285 54 68 28 Other current financial assets(2) 1 10 - 1 10 - - - - Derivatives hedging debt (3) 8 (1) (3) 8 (1) - - - Net Cash (Debt) (3) (15,556) (15,129) (17,810) (1,126) (893) (2,575) (14,430) (14,236) (15,235) (1) Total (Debt) of Industrial Activities includes Intersegment notes payable to Financial Services of $150 million and $501 million as of December 31, 2021 and 2020, respectively. Total (Debt) of Financial Services includes Intersegment notes payable to Industrial Activities of $181 million and $322 million as of December 31, 2021 and 2020, respectively. (2) This item includes short-term deposits and investments towards high-credit rating counterparties. (3) The net intersegment receivable/(payable) balance recorded by Financial Services relating to Industrial Activities was $31 million and $(179) million as of December 31, 2021 and 2020, respectively.
FY 2021 – FY 2020 – FY 2019 December 31, 2021 December 31, 2020 December 31, 2019 Cash and cash equivalents 5,044 8,199 4,455 Restricted cash 801 788 850 Undrawn committed facilities 5,177 6,089 5,438 Other current financial assets(1) 1 10 - Net (Debt) payable to Iveco Group (502) (1,202) (1,502) Available Liquidity 10,521 13,884 9,241 (*) Receivables vs On-Highway 3,484 3,146 2,313 Payables vs On-Highway (3,986) (4,348) (3,815) NET I/C (502) (1,202) (1,502) Reconciliation of Cash and cash equivalents to Available Liquidity under U.S. GAAP U.S. GAAP ($mn) Unaudited (1) This item includes short-term deposits and investments towards high-credit rating counterparties.
Geographic Information The composition of our regions part of the geographic information is as follow: North America: United States, Canada and Mexico; Europe: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine, and Balkans; South America: Central and South America, and the Caribbean Islands; and Rest of World: Continental Asia (including Turkey and Russia), Oceania and member countries of the Commonwealth of Independent States, and African continent and Middle East. Market Share / Market Position Data Certain industry and market share information in this report has been presented on a worldwide basis which includes all countries. In this presentation, management estimates of past market-share information are generally based on retail unit sales data in North America, on registrations of equipment in most of Europe, Brazil, and various Rest of the World markets, and on retail and shipment unit data collected by a central information bureau appointed by equipment manufacturers associations, including the Association of Equipment Manufacturers’ in North America, the Committee for European Construction Equipment in Europe, the ANFAVEA in Brazil, the Japan Construction Equipment Manufacturers Association, and the Korea Construction Equipment Manufacturers Association, as well as on other shipment data collected by an independent service bureau. Not all agricultural or construction equipment is registered, and registration data may thus underestimate, perhaps substantially, actual retail industry unit sales demand, particularly for local manufacturers in China, Southeast Asia, Eastern Europe, Russia, Turkey, Brazil, and any country where local shipments are not reported. For Commercial Vehicles regions are defined as: Europe (the EU 27 countries where Commercial Vehicles competes, excluding United Kingdom and Ireland, for market share and total industry volume “TIV” reporting purpose); South America (Brazil, Argentina and Venezuela) and RoW (Russia, Turkey, South East Asia, Australia, New Zealand). In addition, there may be a period of time between the shipment, delivery, sale and/or registration of a unit, which must be estimated, in making any adjustments to the shipment, delivery, sale, or registration data to determine our estimates of retail unit data in any period.
Non-GAAP Financial Measures CNH Industrial monitors its operations through the use of several non-GAAP financial measures. CNH Industrial’s management believes that these non-GAAP financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to assess CNH Industrial’s financial performance and financial position. Management uses these non-GAAP measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP or EU-IFRS and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP and/or EU-IFRS. CNH Industrial’s non-GAAP financial measures are defined as follows: Adjusted EBIT of Industrial Activities: is defined as net income (loss) before income taxes, Financial Services’ results, Industrial Activities’ interest expenses, net, foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, and certain non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities Adjusted Net Income (Loss): is defined as net income (loss), less restructuring charges and non-recurring items, after tax. Adjusted Diluted EPS: is computed by dividing Adjusted Net Income (loss) attributable to CNH Industrial N.V. by a weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the CNH Industrial share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on an earnings per share basis because the GAAP measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end. Adjusted Income Taxes: is defined as income taxes less the tax effect of restructuring expenses and non-recurring items, and non-recurring tax charges or benefits. Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing a) adjusted income taxes by b) income (loss) before income taxes and equity in income of unconsolidated subsidiaries and affiliates, less restructuring expenses and non-recurring items. Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and derivative hedging debt. CNH Industrial provides the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable measure included in the consolidated balance sheets. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities. Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities, only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under buy-back commitments, assets under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations. Available Liquidity: is defined as cash and cash equivalents plus restricted cash, undrawn medium-term unsecured committed facilities and other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties). Change excl. FX or Constant Currency: CNH Industrial discusses the fluctuations in revenues on a constant currency basis by applying the prior year average exchange rates to current year’s revenues expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations. Unaudited Pro Forma Combined Financial Information: refers to the CNH Industrial as if the Demerger had happened in previous periods. It represents the combined historical results of operations, financial position and cash flows of the Off-Highway Business that is now controlled by CNH Industrial N.V. following the Demerger. It excludes the Iveco Group financial information for all periods presented and has been derived from the consolidated financial statements and accounting records of CNH Industrial N.V. The tables included in this presentation provide reconciliations of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures.
Investor Relations Team e-mail: noah.weiss@cnhind.com website: www.cnhindustrial.com Noah Weiss – Global Head of Investor Relations ( +1 (630) 887 – 3745