CNH Global N.V. Company Overview June 2011

Transcription

1 CNH Global N.V. Company Overview June 2011

2 Fiat Industrial S.p.A. Overview CNH Global N.V. Company Overview June

3 Fiat Industrial at a Glance Global top 3 capital goods platform with FY 2010 Revenues of 21.3bn 1 CNH AG CNH CE Iveco 8.7bn revenue 2 Global No. 2 Top 3 position in virtually all market segments globally 2.2bn revenue 2 Global Top 5 player Global leader in light equipment 8.3bn revenue Global No. 3 truck manufacturer (including JVs) Leadership position in China 2.4bn revenue Top 3 player globally FPT Industrial 1 FY 2010 revenues include FinCo revenues 1.2bn and eliminations 1.5bn 2 CNH AG and CNH CE IFRS Revenues exclude FinCo CNH Global N.V. Company Overview June

4 A Global Leader in the Capital Goods Sector Industrial Revenues 2010A ( bn) 1 Global top 3 capital goods platform Global top 2 in agricultural equipment Fiat Industrial Global top 3 in commercial vehicles 2 Global top tier in construction equipment Leading powertrain technology with substantial global scale in medium and heavy diesel engines Top player in commercial vehicles and heavy machinery in Brazil Well positioned for growth in China, Russia and India Source: Companies annual reports (where currency conversion required, average foreign exchange rate utilized), Fiat Group business plan 1 Fiat Industrial revenues adjusted to exclude Financial Services 2 Light to heavy commercial vehicles, including China JVs CNH Global N.V. Company Overview June

5 Broad global presence and uniquely diversified business model The most extensive and diversified product ranges in the sector and a well balanced global presence with strong position in emerging markets Fiat Industrial RoW 2010A net sales by geography 1 North America Latin America Europe Asia-Pacific 24% EAME 24% North America 38% Latin America 14% RoW 35% North America 65% Asia-Pacific 18% RoW 7% Latin America 11% North America 16% Europe 39% 2010A net sales by product 2 Agriculture Equipment Financial Services Construction Equipment Trucks, Buses & Special Vehicles Financial Services 7% Power System 28% Construction equipment & Others 65% Financial Services 7% Construction equipment & Others 15% Agriculture 78% Financial Services 5% Construction equipment 16% Aero & Penta 7% Trucks & Buses 71% Source: Companies annual reports 1 Geographic areas definition may slightly differ from company to company (Europe, RoW, etc) 2 For Fiat Industrial, FY 2010 product mix based on the sum of Iveco and CNH net sales, excluding FPT CNH Global N.V. Company Overview June

6 CNH Global N.V. Overview CNH Global N.V. Company Overview June

7 Highlights Net Sales increase of 17% to $3.8 billion Agricultural equipment +17% to $3 billion Construction equipment +19% to $700 million Equipment Operations Operating Profit of $246 million, an increase of 71% Operating Margin increased to 6.5% compared to 4.4% in Q Equipment Operations net cash position decreased by $271 million to $1.9 billion Net income before restructuring and exceptional items of $138 million Q Diluted EPS: $0.63/share Diluted EPS before restructuring and exceptional items: $0.57/share CNH Global N.V. Company Overview June

8 Net Sales by Geographic Region* First Quarter (U.S. GAAP, US$ in mils.) $5,000 $4,000 $4,099 $251 $3,797 Rate of Net Sales Change Change Y-o-Y vs. Dec. 10 YTD +17% 100% 11% $3,000 $2,000 $3,241 $181 $292 $1,447 $569 $1,963 $3,237 $3,052 $306 $204 $302 $620 $1,166 $1,001 $425 $609 $1, % (2%) +25 % 16% 33% $1,000 $1,321 $1,316 $1,380 $1,310 $1, % 40% $ % of 2011 total Net Sales North America EAME & CIS Latin America APAC * See Appendix for Geographic Information CNH Global N.V. Company Overview June

9 Net Sales and Operating Profit* Review First Quarter (U.S. GAAP, US$ in mils.) Net Sales Operating Profit $5,000 $400 $4,000 $3,000 $2,000 $1,000 $3,241 $1,124 $2,117 $4,099 $1,174 $2,925 $3,052 $3,237 $480 $611 $2,572 $2,626 $3,797 $726 $3,071 $300 $200 $100 $0 $219 $86 $133 $264 $29 $235 $39 $130 ($91) $144 $180 ($36) $246 $263 ($17) $ ($100) Agricultural Equipment Construction Equipment * See Appendix for Definition and U.S. GAAP Reconciliation CNH Global N.V. Company Overview June

10 CNH Agricultural Equipment Overview Other Eq. 34% Combines 21% Net sales by region (March 2011 LTM) APAC LAR 10% 14% EAME & CIS 32% Net sales by product (March 2011 LTM) Tractors 45% NAR 44% No. 1 or 2 in tractors or combines in nearly every market North American leader in tractor unit sales and No. 2 in combines Leader in European tractor unit sales and No. 2 in combines No. 2 player in highly attractive Brazilian tractor market and market leader in combines Most geographically diversified manufacturer and distributor in the industry with 24 manufacturing facilities on four continents Broadest product range in the sector full line provider for cash grain farms, ranches and dairy farms, orchards and mixed vegetables, landscaping and municipalities strong positioning in high HP machines global leader in specialty harvesting segments (sugarcane, grapes, cotton, coffee) Strong distributor and dealer network with wide geographic coverage Aggressive alliance / JV strategy with local leaders in key high growth emerging markets Market position by region (2009) N. America Europe Latin America Rest of World Combines Top 2 Top 2 Leader Top 3 Leading position in Agricultural Equipment CNH Global N.V. Company Overview June HP tractors Top 2 Leader Top 2 Top 5

11 CNH Construction Equipment Overview Other Eq. 18% Light Eq. 36% LAR 14% Net sales by product (March 2011 LTM) Net sales by region (March 2011 LTM) APAC 10% Heavy Eq. 46% NAR 44% Top 5 player globally in a highly fragmented industry, with market leadership in specific products and regions Top 3 player in light and heavy equipment in the high growth Brazilian market A market leader in light equipment with one in 10 pieces of light equipment globally and one in 5 pieces of light equipment in North America being Case or New Holland products Top 2 player in backhoe loaders and skid steer loaders in both North America and Western Europe Truly global reach and extensive dealer/ distributor network Excellent emerging market strategy through strong local presence in Brazil and JVs in Russia and India JV / alliance with Kobelco and Sumitomo Market position by region (2009) Light Heavy N. America Europe Latin America Top 5 Top 20 Top 2 Top 10 Top 10 Top 3 Top 5 in Construction Equipment EAME & CIS 32% CNH Global N.V. Company Overview June

12 CNH Global Reach Contribution from Equipment Operations JV s Significant unconsolidated subsidiaries Turkey TTF Tractors Equity in Net Income of Equipment Operations Unconsolidated Joint Ventures (U.S. GAAP, US$ in mils.) Japan KCM - Excavators HFT Tractors Pakistan Al Ghazi Tractors India L&T Tractor Loader Backhoes. Compactors Mar 31, 2011 acquired full ownership Other International region consolidated subsidiaries Russia Kamaz - Tractors, Combines, CE China Harbin Tractors Shanghai - Tractors Uzbekistan Tashkent - Tractors, Planters $7 $24 Q1 '10 Q1 '11 Acquisition of full ownership of Indian CE unconsolidated joint venture Acquisition on March 31, 2011; results consolidated starting in Q Production facility certifications: ISO 9001 for design and manufacture of construction and road building equipment ISO certification for environmental management. World Class Manufacturing methodologies will be implemented Distribution network of 144 outlets in India Product portfolio: backhoe loaders and vibratory compactors Plans for the increase of production and expansion of product offering, for local and export markets CNH Global N.V. Company Overview June

13 Inventory Reductions (In Units of Equipment) Agricultural Equipment (Major Equipment) Construction Equipment (Light & Heavy) Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4 10 Q1 11 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Company Inventory Dealer Inventory Company Inventory Dealer Inventory CNH Retails* CNH Production* CNH Retails* CNH Production* First Quarter Overproduction vs. Retail 16% 10% Reduction in Forward Months of Supply First Quarter Underproduction vs. Retail 6% 48% Reduction in Forward Months of Supply * Excluding Joint Ventures Source: CNH Internal Elaboration CNH Global N.V. Company Overview June

14 CNH Agricultural Equipment Sales 2 volume & industry outlook Q1 11 Global AG industry up 10% Tractors Combines FY 10 Q1 11 FY 11E Industry (change vs. prior year) Industry (change vs. prior year) CNH (performance relative to mkt) Industry (change vs. prior year) WW 14% 10% 0-5% NA 3% 5% 5-10% <40hp 4% 6% 5-10% 40+hp 2% 3% 5-10% EAME & CIS 6% 35% 15-20% LA 32% 1% (5-10%) APAC 18% 7% (0-5%) WW 1% 25% 15-20% NA 9% 37% ~15% EAME & CIS (17%) 40% 25-30% Tractors demand up 10%: recovery underway in EAME & CIS from low 2010 base Combines demand up 25%: strong equipment demand from cash crop segments due to sustained strength in commodity prices CNH tractor market share in line with overall market growth as a result of a positive performance in Europe CNH combine market share was down, with exception of APAC; recovery expected in the remaining part of the year as a result of equipment availability, which only became available in the distribution network at the very end of the quarter Company and dealer inventories increased in Q1 to satisfy retail unit deliveries and to accommodate transition stocks for new product launches in higher horsepower segment, but remained in line with or below industry averages FY 11 expectations LA 29% (2%) (0-5%) APAC (8%) 6% ~20% WW AG 14% 10% 0-5% From Jan 1 st onward region split has been changed as follows: NA: USA, Canada and Mexico; EAME & CIS: 27 EU Countries, CIS, Balkans, African continent, Middle East; LA: Central and South America, and Caribbean Islands; APAC: Continental Asia and Oceania Global AG demand flat to up 5% vs Tractors demand flat to up 5% Combines demand up 15-20% CNH Global N.V. Company Overview June

15 CNH Construction Equipment Sales 2 volume & industry outlook Q1 11 Overall CE industry increased 48% Light Heavy FY 10 Q1 11 FY 11E Industry (change vs. prior year) Industry (change vs. prior year) CNH (performance relative to mkt) Industry (change vs. prior year) WW 39% 44% ~25% NA 21% 47% 25-30% EAME & CIS 34% 48% 20-25% LA 88% 46% ~25% APAC 52% 40% 25-30% WW 61% 51% 25-30% NA 16% 49% 20-25% EAME & CIS 49% 63% 25-30% LA 96% 33% ~25% APAC 69% 50% ~30% WW CE 50% 48% ~25% NA up primarily due to fleet restocking LA: market was up 39% driven by strong demand from projects in both public and private sectors APAC: markets rose 47% with continued strong demand in heavy equipment segment in China CNH Light market share down due to low inventory levels as a result of transitioning to new products; expected to be resolved over the remaining part of the year CNH Heavy market share was stable with increased production units in excavator and wheel loader segments due to improved market demand FY 11 expectations (*) Light equipment demand up ~25% Heavy equipment demand up 25-30% (*) Not adjusted for Japanese supply constrains From Jan 1 st onward region split has been changed as follows: NA: USA, Canada and Mexico; EAME & CIS: 27 EU Countries, CIS, Balkans, African continent, Middle East; LA: Central and South America, and Caribbean Islands; APAC: Continental Asia and Oceania CNH Global N.V. Company Overview June

16 CNH Agricultural Equipment Significant investment in broad product suite Significant investment focused on new model launches to complete and strengthen product range Tractors Segment WD 220+ HP HP HP Harvesting Segment Combine CLASS 7, 8, 9 Combine CLASS 4, 5, 6 Combine headers Forage harvester HP Grape harvester 10A New models 4 14 Upgrade 1 3 Repowering 1 3 New models 10A Product actions New models 2 9 Major upgrade Repowering Upgrade 2 6 New models Repowering 0 5 Product actions Major upgrade Repowering Sourcing more engines in-house targeting >90% of engines from FPT Modularize production to be cost competitive produce especially in utility range of tractors More powerful engines, more efficient grain handling systems, upgrades in feeder systems and new headers Modularize production to be cost competitive CNH Global N.V. Company Overview June

17 CNH Construction Equipment Significant investment in broad product suite Light Equipments + Excavators Heavy Equipment Platforms Tractor Loader Backhoe Platforms Wheel Loader Skid Steer Loader Dozer Crawler Excavator Grader Wheel Excavator Compactor 10A New models 1 3 Upgrade 1 4 Repowering 0 9 New models 10A Product actions New models 1 4 Major upgrade Repowering Upgrade 0 1 New models Repowering 0 9 Product actions Major upgrade Repowering CNH Global N.V. Company Overview June

18 Technological leadership Broadest product portfolio and leadership in cost efficient and innovative technologies, compliant with strictest emission standards Powertrain technology is a key value component of the finished product and a main source of competitive advantage FPT Industrial has the widest product range in the market Proprietary SCR technology Euro 6 standards compliant without exhaust gas recirculation, maximizing fuel economy Very high NOx conversion efficiency (>95% vs % of best peers) On-road and off-road full line provider Product offer ranging from 53hp to 870hp Displacement solutions from 2 to 20 litres HC CO Urea N 2 CO 2 Compliant with environmental regulations of all major jurisdictions in the world DOC DPF SCR PM H 2 O NOx More than 90% of engines used by CNH and Iveco (ex JVs) to be supplied by FPT Industrial through a limited DOC: Diesel Oxidation Catalyst DPF: Diesel Particulate Filter EGR: Exhaust Gas Recirculation SCR: Selective Catalytic Reduction number of platforms Strong pipeline of innovations Hybrid technologies Hydrogen MultiAir technology applied to medium and heavy duty diesel engines Results in 2 4% reduction in operating costs CNH Global N.V. Company Overview June

19 2011 Early Trends and Financial Outlook Commodity cost escalation Steel plate, bar, and castings, rubber Expected full cost recovery through pricing in 2011 Japanese supply base Situation being monitored Temporary production curtailments are expected in Q2 and Q3 Estimated full year negative economic impact Revenues $ million and Operating profit $40-60 million Tier 4A/Stage IIIB engines updates Product conversions on schedule Mix of SCR and EGR solution depending on equipment class Full year revenue and earnings growth targets for 2011 re-affirmed Revenue growth of +10% Operating margin range of 7.1% to 7.9% CNH Global N.V. Company Overview June

20 For Further Information Please Contact Investor Relations: Manfred Markevitch Head of Investor Relations Federico Catasta Case New Holland Inc Veterans Boulevard Burr Ridge, Illinois USA Tel: Fax: Website: CNH Global N.V. Company Overview June

21 Forward Looking Statement This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of All statements other than statements of historical fact contained in this presentation, including statements regarding our competitive strengths, business strategy, future financial position, operating results, budgets, projected costs and plans and objectives of management, 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," "goal," or similar terminology. Our outlook is predominantly based on our interpretation of what we consider key economic assumptions and involves risks and uncertainties that could cause actual results to differ. Crop production and commodity prices are strongly affected by weather and can fluctuate significantly. Housing starts and other construction activity are sensitive to the availability of credit and to interest rates and government spending. Some of the other significant factors which may affect our results include general economic and capital market conditions, the cyclical nature of our business, customer buying patterns and preferences, foreign currency exchange rate movements, our hedging practices, our customers' access to credit, restrictive covenants in our debt agreements, actions by rating agencies concerning the ratings of our debt securities and asset backed securities, risks related to our relationship with Fiat Industrial S.p.A., the effect of the demerger transaction consummated by Fiat S.p.A. pursuant to which CNH was separated from Fiat S.p.A.'s automotive business and has become a subsidiary of Fiat Industrial S.p.A, political uncertainty and civil unrest or war in various areas of the world, pricing, product initiatives and other actions by competitors, disruptions in production capacity, excess inventory levels, the effect of changes in laws and regulations (including those related to tax, healthcare, retiree benefits, government subsidies and international trade), the results of legal proceedings, technological difficulties, results of our research and development activities, changes in environmental laws, employee and labor relations, pension and health care costs, relations with and the financial strength of dealers and critical suppliers, the cost and availability of supplies from our suppliers, raw material costs and availability, energy prices, real estate values, animal diseases, crop pests, harvest yields, government farm programs and consumer confidence, housing starts and construction activity, concerns related to modified organisms and fuel and fertilizer costs. Additionally, our achievement of the anticipated benefits of our margin improvement initiatives depends upon, among other things, industry volumes as well as our ability to effectively rationalize our operations and to execute our brand strategy. Further information concerning factors that could significantly affect expected results is included in our annual report on Form 20-F for the year ended December 31, We can give no assurance that the expectations reflected in our forward-looking statements will prove to be correct. Our actual results could differ materially from those anticipated in these forward-looking statements. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by the factors we disclose that could cause our actual results to differ materially from our expectations. We undertake no obligation to update or revise publicly any forward-looking statements. CNH Global N.V. Company Overview June

22 Geographic Information and Market Share/Position Data Geographic Area as Defined by CNH are: North America United States, Canada, and Mexico Europe Africa Middle East & Commonwealth of Independent States (EAME & CIS) 27 EU countries, 10 CIS Countries, Balkans, African continent, and Middle East Latin America Central and South America, and the Caribbean Islands Asia Pacific (APAC) Continental Asia, and Oceania 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 report, management estimates of market share information are generally based on retail unit data in North America, on registrations of equipment in most of Europe, Brazil, and various Rest of 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. In addition, there may also 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. CNH Global N.V. Company Overview June

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