1 2014 ANNUAL REPORT AT DECEMBER 31, 2014
2 IN ITS FIRST FULL YEAR OF OPERATION, CNH INDUSTRIAL HAS ACHIEVED A NUMBER OF GLOBAL OBJECTIVES BOTH AT CORPORATE AS WELL AS THROUGH ITS BRANDS. THE GROUP ENACTED IMPORTANT CHANGES WITHIN ITS BUSINESSES, EXPANDED ITS PRESENCE TO NEW GEOGRAPHIC AREAS AND CONFIRMED ITS STANDING AS A GLOBAL LEADER IN CAPITAL GOODS. SERGIO MARCHIONNE CHAIRMAN
3 2 ANNUAL GENERAL MEETING Shareholders are notified that the Annual General Meeting of Shareholders (the AGM ) of CNH Industrial N.V. (the Company ) is convened at 12:00 p.m. CET on Wednesday April 15, 2015, at the Hotel Sofitel Legend The Grand Amsterdam, Oudezijds Voorburgwal 197, 1012 EX, in Amsterdam, The Netherlands. The language of the meeting shall be English. The AGM is convened to discuss and decide on the following: Agenda 1. Opening 2. Annual Report 2014 a. Application of the remuneration policy in 2014 (discussion only item) b. Policy on additions to reserves and on dividends (discussion only item) c. Adoption of the 2014 Annual Financial Statements (voting item) d. Determination and distribution of dividend (voting item) e. Release from liability of the executive directors and the non-executive directors of the Board (voting item) 3. Re-appointment of the executive directors and the non-executive directors a. Re-appointment of Sergio Marchionne (voting item) b. Re-appointment of Richard J. Tobin (voting item) c. Re-appointment of John P. Elkann (voting item) d. Re-appointment of Mina Gerowin (voting item) e. Re-appointment of Maria Patrizia Grieco (voting item) f. Re-appointment of Léo W. Houle (voting item) g. Re-appointment of Peter Kalantzis (voting item) h. Re-appointment of John B. Lanaway (voting item) i. Re-appointment of Guido Tabellini (voting item) j. Re-appointment of Jacqueline Tammenoms Bakker (voting item) k. Re-appointment of Jacques Theurillat (voting item) 4. Replacement of the existing delegation to the Board of the authority to acquire common shares in the capital of the Company and related matters (voting item) 5. Close of meeting AGM documentation The AGM notice and documentation are available on the Company s website (www.cnhindustrial.com/investors/shareholder Info/Shareholder Meetings) and at the Company s offices at Cranes Farm Road, Basildon, Essex SS14 3AD (United Kingdom). Shareholders and other persons entitled to attend the meeting may request free copies of the relevant documents.
4 3 Participation and voting Under Dutch law and the Company s Articles of Association, persons entitled to attend and to vote at the AGM are (i) shareholders (which for the purposes of this notice include holders of a Dutch law right of usufruct) as of March 18, 2015 (record date) registered in the AGM Register established for that purpose by the Board of Directors after all debit and credit entries have been handled as per the record date, regardless of whether the shares are still held by them at the date of the AGM and (ii) in addition have registered themselves in the manner mentioned below. Company shares can be held in three ways: registered in the loyalty register - Shareholders holding special voting shares and common shares or shareholders holding common shares for which they have elected to receive special voting shares. The loyalty register is maintained on behalf of the Company in the records of the Company s agents: Computershare Trust Co. NA and Computershare S.p.A. (each the Agent and both the Agents ). as registered shareholders if shareholders hold shares directly in their own name in the United States of America, such shares are held in registered form in an account at Computershare Trust Co. NA as the transfer agent of the Company. in a bank, brokerage or other intermediary account through Cede & Co., as the nominee of the Depository Trust Company ( DTCC ), including shares in an intermediary account with a participant in the Monte Titoli clearing system (these shares are included in the shareholder register in the name of Cede & Co.) The Agents will send AGM meeting materials to shareholders registered in the loyalty register and/or registered shareholders, at the addresses of such shareholders as they appear from the records maintained by the Agents, including a proxy form also available on the Company website - that allows them to give someone else the right to vote their shares in accordance with their instructions. Shareholders registered in the loyalty register and/or registered shareholders, will be entitled to attend the AGM (either in person or by proxy, please note proxy instructions below) if they have notified the relevant Agent by 11:00 p.m. CET on April 8, 2015 of their attendance in writing or electronically (contact details at the end of this announcement). Shareholders holding their shares in an intermediary account with a participant in the Monte Titoli clearing system and intending to attend the AGM (either in person or by proxy) should ask their intermediary to obtain the entitlement to be registered in the AGM Register and be sent the documents necessary to attend the AGM (the Attendance Card). Intermediaries must submit registration requests ultimately by 11:00 p.m. CET on April 8, 2015 to Computershare S.p.A. The abovementioned shareholders may give their voting instructions through the proxy form located on the Company s website They can also cast their vote in advance of the AGM via the web procedure made available on the Company s website (www.cnhindustrial.com/investors/ Shareholder Info/Shareholder Meetings). If the above shareholders have requested to attend the AGM (either in person or by proxy), they will receive, as previously mentioned, the Attendance Card issued in their name. This will serve as admission certificate and the shareholder (or his or her proxy) will need to submit the Attendance Card at the AGM on April 15, 2015 to enter the AGM. For this purpose the Attendance Card also contains a proxy form section. Prior to the AGM, the attendance card and as well as a copy of the written power of attorney when applicable shall have to be handed over at the registration desk. Shareholders whose shares are held in a bank, brokerage or intermediary account in the United States of America will need to follow the directions provided by the bank or brokerage firm in order to vote their shares and/or attend the AGM. Representation by proxy Subject to compliance with the above provisions, shareholders can attend and vote at the AGM in person or by proxy. In order to give proxy and voting instructions, the shareholder (a) must have registered his or her shares as set out above and (b) must ensure that the duly completed and signed proxy including, as appropriate, voting instructions, will be received by the relevant Agent by 11:00 p.m. CET on April 8, 2015 in writing or electronically pursuant to instructions contained in the proxy forms. Identification Persons entitled to attend the AGM may be requested to identify themselves at the registration desk prior to admission to the AGM and are therefore requested to bring a valid identity document.
5 4 CONTENTS O1 THE GROUP AT A GLANCE 10 O2 REPORT ON OPERATIONS 22 CONTENTS O3 CNH INDUSTRIAL CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, BOARD OF DIRECTORS AND AUDITOR 6 LETTER FROM THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER 8 O4 CNH INDUSTRIAL N.V. STATUTORY FINANCIAL STATEMENTS AT DECEMBER 31, O5 APPENDIX 228 O6 INDEPENDENT AUDITOR S REPORT 236
6 In Summary 12 Income Statement 204 THE GROUP AT A GLANCE Introduction 14 Group Structure 16 Brands 17 CNH Industrial around the World 18 Our Commitment to Sustainable Development 20 Highlights 24 Highlights by Segment 25 CNH INDUSTRIAL N.V. STATUTORY FINANCIAL STATEMENTS AT DECEMBER 31, 2014 Statement of Financial Position 205 Notes to the Statutory Financial Statements 206 Other Information 224 Shareholders 26 REPORT ON OPERATIONS Main Risks and Uncertainties to which CNH Industrial N.V. and the Group are exposed 30 Business Overview 44 Research and Development 72 Human Resources 73 Financial Review 76 Corporate Governance 94 Remuneration of Directors 108 Subsequent Events and Outlook 115 APPENDIX CNH Industrial Group Companies at December 31, Consolidated Income Statement 118 Independent Auditor s Report 238 CNH INDUSTRIAL CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2014 Consolidated Statement of Comprehensive Income 119 Consolidated Statement of Financial Position 120 Consolidated Statement of Cash Flows 122 Consolidated Statement of Changes in Equity 123 Notes to the Consolidated Financial Statements 124 INDEPENDENT AUDITOR S REPORT
7 6 BOARD OF DIRECTORS AND AUDITOR BOARD OF DIRECTORS AND AUDITOR BOARD OF DIRECTORS CHAIRMAN SERGIO MARCHIONNE INDEPENDENT AUDITOR ERNST & YOUNG ACCOUNTANTS LLP CHIEF EXECUTIVE OFFICER RICHARD J. TOBIN DIRECTORS JACQUELINE A. TAMMENOMS BAKKER (2) JOHN ELKANN (2) (3) MINA GEROWIN (2) MARIA PATRIZIA GRIECO (3) LÉO W. HOULE (3) PETER KALANTZIS (1) (3) JOHN LANAWAY (1) GUIDO TABELLINI (*) JACQUES THEURILLAT (1) (1) Member of the Audit Committee (2) Member of the Governance and Sustainability Committee (3) Member of the Compensation Committee (*) Member of the Audit Committee until October 30, 2014
8 7 Disclaimer All statements other than statements of historical fact contained in this filing, including statements regarding Group s 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, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. 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 are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the Group s control and are difficult to predict. If any of these risks and uncertainties materialize or other assumptions underlying any of the forward-looking statements prove to be incorrect the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements, including, among others: the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products; general economic conditions in each of the Group s markets; changes in government policies regarding banking, monetary and fiscal policies; legislation, particularly relating to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; actions of competitors in the various industries in which the Group competes; development and use of new technologies and technological difficulties; compliance requirements imposed if additional engine emissions legislation and/or regulations are adopted; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; housing starts and other construction activity; the Group s ability to obtain financing or to refinance existing debt; a decline in the price of used vehicles; the resolution of pending litigation and investigations; the evolution of the Group s alliance with Kobelco Construction Machinery Co., Ltd. and Sumitomo (S.H.I.) Construction Machinery Co., Ltd.; the Group s pension plans and other post-employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including further decline of the Eurozone sovereign debt crisis, other similar risks and uncertainties and the Group s success in managing the risks involved in the foregoing. Forward-looking statements speak only as of the date on which such statements are made. Furthermore, in light of ongoing difficult macroeconomic conditions, both globally and in the industries in which CNH Industrial operates, it is particularly difficult to forecast results and any estimates or forecasts of particular periods that CNH Industrial provides are uncertain. Accordingly, investors should not place undue reliance on such forward-looking statements. CNH Industrial can give no assurance that the expectations reflected in the forward-looking statements will prove to be correct. CNH Industrial s outlook is based upon assumptions, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. CNH Industrial s actual results could differ materially from those anticipated in such forward-looking statements. CNH Industrial undertakes no obligation to update or revise publicly any forward-looking statements. Additional factors which could cause actual results and developments to differ from those expressed or implied by the forward-looking statements are included in the section Main risks and uncertainties to which CNH Industrial N.V. and the Group are exposed of this Annual Report. Further information concerning CNH Industrial and its businesses, 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 Exchange Commission ( SEC ), the Autoriteit Financiële Markten ( AFM ) and Commissione Nazionale per le Società e la Borsa ( CONSOB ).
9 8 LETTER FROM THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER LETTER FROM THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER Dear Shareholders, 2014 was a landmark year for our Company. Not only was it our first full year of operation as CNH Industrial, but it was also one that saw us achieve a number of global objectives both at corporate level as well as through our brands. It was a year that saw us challenge ourselves to enact important changes within our businesses as well as expand our presence to new geographic areas. As our common shares are listed on both the New York Stock Exchange and Milan s Mercato Telematico Azionario, we sought to raise our profile and confirm our standing as a global leader in capital goods. This will be an ongoing endeavor as we continue to educate financial analysts and investors about CNH Industrial and our businesses. Last May, we presented our ambitious five-year ( ) strategic business plan ( Plan ) to financial analysts and institutional investors, which has the aim of growing our businesses and continuing to build a truly unique organization with even greater potential. The Plan brings together the core aspects of our businesses to spotlight the different regions where we operate our four industrial segments (Agricultural Equipment, Construction Equipment, Commercial Vehicles and Powertrain) and Financial Services, our 12 global brands, our manufacturing footprint and programs, the developments arising from our work in innovation and our determination to deliver sustainable longterm value. CNH Industrial closed 2014 with positive results that were reflective of changing global market trends across its operating segments. The Company s Efficiency Program, announced in July 2014, includes restructuring activities deemed essential by management. We are confident that the long-term benefits of the Efficiency Program will maximize productivity throughout our global operations and align our manufacturing capacity to reflect the current and future market demand. Net Revenues for 2014 totaled $33.0 billion. Trading profit was $2.4 billion for the year with trading margin at 7.3%. Net profit was $916 million. On the basis of those results, the Board of Directors recommended to shareholders a dividend payment of 0.20 per common share, corresponding to a total dividend of approximately 271 million (approximately $305 million). Overall, it was a year full of new challenges, but also new opportunities and accomplishments. In terms of growing our global footprint, in July, we opened a new manufacturing complex in Harbin, China. It is the largest agricultural equipment production plant in Northeast China. We also acquired a new business in 2014: precision spraying equipment manufacturer Miller-St. Nazianz, Inc. The business has become part of New Holland Agriculture. This acquisition further builds upon our expertise in the professional and broad acreage segment of the agricultural industry and provides a strong platform to grow the self-propelled sprayer business on a global scale. For the fourth consecutive year, CNH Industrial was confirmed as Industry Leader in the prestigious Dow Jones Sustainability World and Europe indexes. We achieved the highest score in the principal areas of analysis in the environmental dimension (environmental policies and management systems, climate strategy and water related risks) as well as in the economic dimension (supply chain and innovation management). In addition, CNH Industrial was named as world leader in the CDP s Climate Performance Leadership Index 2014, for its superior approach to climate change mitigation, and in the Italy Climate Disclosure Leadership Index, based on the quality of climate change data disclosed to the market through CDP.
10 9 We also had good news to share with respect to our product segments. Each of our brands registered notable recognition and achievements in 2014, which included: The Iveco Daily being named International Van of the Year 2015 at the IAA Hanover Motor Show; Innovations from our Agricultural Equipment brands, Case IH and New Holland Agriculture, being ranked among The American Society of Agricultural and Biological Engineers AE50 list of the top 50 agricultural technology products; The Magnum 380 CVX from Case IH winning the Tractor of the Year title (TOTY 2015) and the T3F from New Holland Agriculture winning for Best of Specialized Tractor at EIMA International 2014; FPT Industrial winning the Diesel of the Year 2014 title for its Cursor 16 engine; Iveco Bus and Heuliez Bus both winning major tenders with Paris public transport operator RATP; The official launch of Iveco Bus in Brazil; New Holland Agriculture celebrating 50 years of operation in the United Kingdom (Basildon), Belgium (Antwerp) and Mexico (Queretaro); setting a new GUINNESS WORLD RECORDS title for most wheat harvested within eight hours by a combine harvester; and the opening of a second tractor plant as part of its TürkTraktör joint venture in Turkey. These are a few of the achievements that we attained last year. We expect to maintain this momentum for 2015, where we are already off to a good start. As already announced, we anticipate improved profitability in Commercial Vehicles and Construction Equipment in 2015, coupled with structural cost improvement measures from the Company s Efficiency Program now extended to Agricultural Equipment, mitigating, but not fully offsetting, the continuing negative impact of challenging trading conditions in the agricultural row crop sector, as well as the negative translation impact from the recent significant appreciation of the U.S. dollar. We would like to thank all shareholders for your continued support during 2014 and look forward to our ongoing dialogue as CNH Industrial continues on its ambitious development path as we pursue our five-year business plan targets. Sergio Marchionne Richard J. Tobin CHAIRMAN CHIEF EXECUTIVE OFFICER
11 O1 THE GROUP AT A GLANCE
12 In Summary Introduction Group Structure Brands CNH Industrial around the World Our Commitment to Sustainable Development
13 12 THE GROUP AT A GLANCE 2014 IN SUMMARY 2014 IN SUMMARY FINANCIAL RESULTS REVENUES TRADING PROFIT PROFIT $33.0 BILLION $2.4 BILLION $0.9 BILLION NET INDUSTRIAL DEBT TOTAL AVAILABLE LIQUIDITY $2.9 BILLION $8.9 BILLION THE GROUP 12 BRANDS 64 PLANTS $1.1 BILLION INVESTED IN R&D 190 NATIONAL MARKETS 69,207 EMPLOYEES 49 R&D CENTERS 6,100 INDIVIDUALS DEDICATED TO INNOVATION
14 13 REVENUES ($ MILLION) TRADING PROFIT ($ MILLION) , , , , , , ,000 20,000 30, ,000 2,000 3,000 PROFIT/(LOSS) ($ MILLION) NET DEBT ($ MILLION) ,874 23, , ,195 23, , ,166 21,102-1, , ,000 20,000 30,000 CNH Industrial Group Industrial Activities
15 14 THE GROUP INTRODUCTION AT A GLANCE INTRODUCTION CNH Industrial N.V. is the company formed by the merger, completed on September 29, 2013, between Fiat Industrial S.p.A. and its majority owned subsidiary CNH Global N.V. CNH Industrial N.V. is incorporated in, and under the laws of, The Netherlands. CNH Industrial N.V. has its corporate seat in Amsterdam, The Netherlands, and its principal office in Basildon, United Kingdom. The merger had no impact on the consolidated activities of the former Fiat Industrial S.p.A. and its subsidiaries (the Fiat Industrial Group ) and therefore the results presented herein are consistent and comparable with those previously published by Fiat Industrial. However, as of the merger closing date, net profit and net equity that previously would have been attributed to the ex-cnh Global N.V. minority shareholders are included in the profit and net equity attributable to owners of the parent. Change in presentation currency and in reportable segments Until December 31, 2013, CNH Industrial N.V. (and collectively with its subsidiaries the CNH Industrial Group, or CNH Industrial, or the Group ) presented its Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards ( IFRS ) as issued by the International Accounting Standards Board ( IASB ) and adopted by the European Union, in euros and including three reportable segments: Agricultural and Construction Equipment inclusive of its financial services activities, Trucks and Commercial Vehicles inclusive of its financial services activities, and Powertrain. Beginning with the filing with the SEC of its Annual Report on Form 20-F for the fiscal year ended December 31, 2013, prepared in accordance with accounting standards generally accepted in the United States ( U.S. GAAP ), CNH Industrial reports quarterly and annual financial results both under U.S. GAAP for SEC reporting purposes and under IFRS for European listing purposes and Dutch law requirements. Financial statements under both sets of accounting principles use U.S. dollar as the reporting currency. Prior period results, prepared in euro, have been consistently recast. In addition, CNH Industrial has expanded its reportable segments from three (Agricultural and Construction Equipment inclusive of its financial services activities, Trucks and Commercial Vehicles inclusive of its financial services activities, and Powertrain) to five (Agricultural Equipment, Construction Equipment, Commercial Vehicles, Powertrain and Financial Services). The activities carried out by the four industrial segments Agricultural Equipment, Construction Equipment, Commercial Vehicles and Powertrain, as well as Corporate functions, are collectively referred to as Industrial Activities. Prior period results have been consistently recast. Additional information on the adoption of the U.S. dollar as the reporting currency and on the change in the reportable segments is presented in the Notes to the Consolidated Financial Statements, section Significant accounting policies. Financial information included in this Annual Report is prepared in accordance with IFRS and presented in U.S. dollars, with segment reporting based on five segments. Certain other information Certain financial information in this report has been presented by geographic area. The Group s geographic regions are: NAFTA, EMEA, LATAM and APAC. The geographic designations have the following meanings: NAFTA: United States, Canada and Mexico; EMEA: member countries of the European Union, member countries of the European Free Trade Association ( EFTA ), Ukraine, Balkans, African continent and the Middle East (excluding Turkey); LATAM: Central and South America, and the Caribbean Islands; and APAC: Continental Asia (including Turkey and Russia), Oceania and member countries of the Commonwealth of Independent States ( CIS ) (excluding Ukraine). Certain industry and market share information in this Annual Report has been presented on a worldwide basis which includes all countries. In this Annual Report, management estimates of 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 APAC markets, and on retail and shipment unit data collected by a central information bureau
16 15 appointed by equipment manufacturers associations, including the Association of Equipment Manufacturers in North America, the Committee for European Construction Equipment in Europe, the Associação Nacional dos Fabricantes de Veículos Automotores ( 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 independent service bureaus. 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 for both market share and total industry volume ( TIV ) as: Europe (27 countries reflecting key markets where the segment competes), LATAM (Brazil, Argentina and Venezuela) and APAC (Russia, Turkey, South East Asia, Australia and 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 the Group s estimates of retail unit data in any period. Non-GAAP financial information CNH Industrial monitors its operations through the use of several non-gaap financial measures. CNH Industrial believes that these non-gaap financial measures provide useful and relevant information regarding its operating results and enhance the reader s ability to assess CNH Industrial s financial performance and financial position. They provide measures which facilitate management s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions. These and similar measures are widely used in the industries in which the Group operates. These financial measures may not 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 IFRS. CNH Industrial non-gaap financial measures are defined as follows: Trading Profit is computed starting from Net revenues less Cost of sales, Selling, general and administrative costs, Research and development costs, and other operating income and expenses; Operating Profit: is computed starting from Trading Profit plus/minus restructuring costs, other income (expenses) that are unusual in the ordinary course of business (such as gains and losses on the disposal of investments and other unusual items arising from infrequent external events or market conditions); Net Debt and Net Debt of Industrial Activities (or Net Industrial Debt): CNH Industrial provides the reconciliation of Net Debt to Total Debt, which is the most directly comparable measure included in the consolidated statement of financial position. 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 receivables from financing activities for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Debt of Industrial Activities; Working capital: it is defined as trade receivables, net, plus inventories, less trade payables, plus other assets (liabilities), net; and constant currency: CNH Industrial discusses the fluctuations in revenues and certain non-gaap financial measures on a constant currency basis by applying the prior-year exchange rates to current year s values expressed in local currency in order to eliminate the impact of foreign exchange rate fluctuations.
17 16 THE GROUP GROUP AT A GLANCE STRUCTURE GROUP STRUCTURE CNH Industrial is a leading global capital goods group engaged in the design, production, marketing, sale and financing of agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for those vehicles and engines for marine and power generation applications. Present in all major markets worldwide, CNH Industrial is focused on expanding its presence in high-growth markets, including through joint ventures. The Group has industrial and financial services companies located in 45 countries and a commercial presence in approximately 190 countries. The Group had net revenues of $32,957 million in 2014 and, as of December 31, 2014, had 69,207 employees. As described in the Introduction, Group segments presented in this Annual Report are as follows: Agricultural Equipment, which designs, manufactures and distributes a full line of farm machinery and implements, including two-wheel and four-wheel drive tractors, crawler tractors (Quadtrac ), combines, cotton pickers, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements and material handling equipment. Agricultural equipment is sold under the New Holland Agriculture and Case IH Agriculture brands, as well as the Steyr brand in Europe. Subsequent to the acquisition of substantially all of the assets of Miller-St. Nazianz Inc. ( Miller ) in November 2014, certain agricultural equipment products are also sold under the Miller brand, primarily in North America; Construction Equipment, which designs, manufactures and distributes a full line of construction equipment including excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, telehandlers and trenchers. Construction equipment is sold under the New Holland Construction and Case Construction Equipment brands; Commercial Vehicles, which designs, produces and sells a full range of light, medium and heavy vehicles for the transportation and distribution of goods through the Iveco brand, commuter buses and touring coaches through the Iveco Bus (previously Iveco Irisbus) and Heuliez Bus brands, quarry and mining equipment through the Iveco Astra brand, firefighting vehicles through the Magirus brand and vehicles for civil defense and peace-keeping missions under the Iveco Defence Vehicles brand; Powertrain, which designs, manufactures and offers a range of propulsion and transmission systems and axles for on- and off-road applications, as well as engines for marine application and power generation through the FPT Industrial brand; and Financial Services, which offers a range of financial services to dealers and customers. Financial Services provides and administers retail financing to customers for the purchase or lease of new and used industrial equipment or vehicles and other equipment sold by CNH Industrial dealers. In addition, Financial Services provides wholesale financing to CNH Industrial dealers, which primarily consists of floor plan financing and allows the dealers to purchase and maintain a representative inventory of products.
18 BRANDS THE GROUP 17 AT A GLANCE BRANDS POWERTRAIN COMMERCIAL CONSTRUCTION AGRICULTURAL VEHICLES EQUIPMENT EQUIPMENT CASE IH AGRICULTURE CASE CONSTRUCTION EQUIPMENT IVECO HEULIEZ BUS FPT INDUSTRIAL NEW HOLLAND AGRICULTURE NEW HOLLAND CONSTRUCTION IVECO ASTRA MAGIRUS STEYR IVECO BUS IVECO DEFENCE VEHICLES
19 18 THE GROUP CNH INDUSTRIAL AT A GLANCE AROUND THE WORLD CNH INDUSTRIAL AROUND THE WORLD NAFTA $33,0 billion Revenues $9,447 million REVENUES 11,647 EMPLOYEES 12 PLANTS 13 R&D CENTERS 69,207 Employees 64 Plants 49 R&D Centers LATAM $4,914 million REVENUES 10,485 EMPLOYEES 10 PLANTS 6 R&D CENTERS
20 19 EMEA CNH INDUSTRIAL: A GLOBAL GROUP WITH A MAJOR INDUSTRIAL AND COMMERCIAL PRESENCE EMPLOYING A GLOBAL VISION BUT INTERACTING AT THE LOCAL LEVEL, THE GROUP EXPANDED GEOGRAPHICALLY IN ORDER TO FULLY LEVERAGE THE OPPORTUNITIES IN EACH MARKET AND RESPOND RAPIDLY TO THE NEEDS OF CUSTOMERS. $14,951 million REVENUES 41,756 EMPLOYEES 34 PLANTS 26 R&D CENTERS APAC $3,645 million REVENUES 5,319 EMPLOYEES 8 PLANTS 4 R&D CENTERS