Investor Presentation - CNH Industrial Capital Australia - Introducing CNH Industrial Capital
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CNH Industrial Capital Australia
Investor Presentation
CONFIDENTIAL June 2021
Forward Looking Statements 2
This document has been prepared by CNH Industrial Capital Australia Pty. Limited and certain affiliates (collectively, “CNHICA”). The material contained in this presentation and any accompanying documents (collectively, the “information”) is
confidential and provides general background information about CNHICA’s activities current at the date of the presentation and should be viewed solely in conjunction with the oral briefing provided by CNHICA at the time at which the information has
been presented. The information is not a research report and it should not be construed as a research report.
The information has been prepared solely for informational purposes only and does not constitute or form part of any offer for sale or subscription of, or solicitations or any offer to buy or subscribe for, or any invitation to subscribe for or purchase any
securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. The information is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. No action
has been taken to permit the public distribution of the information in any jurisdiction and the information should not be distributed to any person or entity in any jurisdiction or country where such distribution would be contrary to applicable law.
The information has not been lodged with Australian Securities and Investments Commission or any other authority. The information is intended for distribution only to financial institutions and professional investors whose ordinary business includes
the buying or selling of securities in circumstances where disclosure is not required under Chapter 6D.2 or Chapter 7 of the Corporations Act 2001 of Australia (the “Corporations Act”) and only in such other circumstances as may be permitted by
applicable law. The information must not be given, and is not intended to be given, to any “retail client” within the meaning of section 761G of the Corporations Act. Any securities that may be offered by CNHICA in, or into, Australia are offered only
as an offer that would not require disclosure to investors under Part 6D.2 or 7.9 of the Corporations Act. This presentation is directed only to persons to whom disclosure is not required under Part 6D.2 or 7.9 of the Corporations Act. The information
may not be taken or transmitted into the United States or distributed, directly or indirectly, in the United States. Any proposed offering of securities will not be registered under the United States Securities Act of 1933, as amended (the “Securities
Act”). The information may not be taken or transmitted or distributed, directly or indirectly, to a U.S. person (as defined in Regulation S under the Securities Act) or to any officer, employee or affiliate of a U.S. person located in the United States or any
of its territories.
The information is a summary only and does not purport to be complete. It does not amount to an express or implied recommendation or a statement of opinion (or a report or either of those things) with respect to any investment in CNHICA nor does
it constitute a financial product or financial advice. The information does not take into account the investment objectives, financial situation or needs of any particular investor. CNHICA does not provide accounting, tax or legal advice. Prospective
investors are required to make their own independent investigation and appraisal of the business and financial condition of CNHICA and the nature of any securities that may be issued by CNHICA. By accepting receipt of the information, the recipient
will be deemed to represent that they possess, either individually or through their advisers, sufficient investment expertise to understand the risks involved in any purchase or sale of any financial securities discussed herein.
Certain statements contained in the information may be statements of future expectations and other forward-looking statements. These statements involve subjective judgement and analysis and may be based on third party sources and are subject to
significant known and unknown uncertainties, risks and contingencies outside the control of CNHICA which may cause actual results to vary materially from those expressed or implied by these forward looking statement. Forward-looking statements
contained in the information regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as
of the date of this presentation. Opinions expressed are present opinions only and are subject to change without further notice. No representation or warranty is given as to the accuracy or completeness of the information contained herein. There is
no obligation to update, modify or amend the information or to otherwise notify the recipient if information, opinion, projection, forward-looking statement, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
Any offering of any security or other financial instrument that may be related to the subject matter of this communication will be made pursuant to separate and distinct documentation (“Offering Documents”) and in such case the information will be
superseded in its entirety by any such Offering Documents in its final form. In addition, because the information is a summary only, it may not contain all material terms and the information in and of itself should not form the basis for any investment
decision. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in the Offering Documents published in relation to such an offering. Any such offer,
invitation or solicitation will only be made: (a) to investors whose ordinary business is to buy or sell shares, debentures or interests in managed investment schemes, whether as principal or agent; and (b) in circumstances where disclosure is not
required under Part 6D.2 of the Corporations Act and a product disclosure statement is not required to be given under Part 7.9 of the Corporations Act (as applicable), because investors must be “professional investors” within the meaning of the
Corporations Act, the minimum amount payable on acceptable of the offer or invitation by a person is A$500,000 or the offer or invitation is otherwise exempt from disclosure under Parts 6D.2 and 7.9 of the Corporations Act (as applicable). No cooling
off regime would apply in respect of the acquisition of financial products under such an offer, invitation or solicitation.
CNHICA shall have no liability, contingent or otherwise, to any user of the information or to third parties, or any responsibility whatsoever, for the correctness, quality, accuracy, timeliness, pricing, reliability, performance or completeness of the
information. In no event will CNHICA be liable for any special, indirect, incidental or consequential damages which may be incurred or experienced on account of the user using information even if it has been advised of the possibility of such damages.
By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.
CONFIDENTIAL June 2021
3
1. KEY INVESTMENT HIGHLIGHTS
CONFIDENTIAL June 2021
Key Investment Highlights 4
CNH Industrial Capital Australia
Strategic relationship with well positioned
parent company ▪ CNH Industrial N.V. (“CNH Industrial”) is a global leader in the capital goods sector that designs, produces and sells agricultural
and construction equipment, commercial vehicles, buses and specialty vehicles, in addition to a broad portfolio of powertrain
1 applications
▪ Full line distribution model with wide geographic coverage in all major markets worldwide
Leading and profitable equipment lender
▪ A leading captive lender in Australia in an income-producing equipment industry with an operating history of over 40 years
– CNH Industrial Capital Australia provides key financing for CNH Industrial’s agricultural, construction and commercial
2 vehicle equipment end-use customers and dealers in Australia & New Zealand
– Strong dealer network (~140 main dealers with ~240 locations in Australia1 )
Disciplined underwriting and servicing ▪ Disciplined, independent underwriting has led to strong credit performance
3 – Portfolio management is specifically tailored to the agricultural and construction equipment businesses
– Proprietary retail credit scoring system and dealer risk rating system with proven success
Profitable IG captive with ▪ Profitable, even through credit crisis
diverse funding base ▪ Investment-grade rated by Fitch (BBB- rating confirmed in June 2020), Moody’s (Baa3 rating confirmed in December 2020) ,
4 and S&P (BBB rating confirmed in August 2020)
▪ No reliance on intercompany funding
▪ Funding sources include unsecured facilities, unsecured bonds and securitisation
1 As of the quarter ending March 31, 2021
CONFIDENTIAL June 2021
5
2. CNH INDUSTRIAL
OVERVIEW
CONFIDENTIAL June 2021
CNH Industrial N.V.
6
One Of The Largest Capital Goods Companies Globally
REVENUE (2020) KEY FIGURES
$26.0Bn
FINANCIAL SERVICES
7% AGRICULTURAL
EQUIPMENT 12
CONSTRUCTION $1.8bn 42% BRANDS
EQUIPMENT
8% $2.2bn
64,016
EMPLOYEES
POWERTRAIN $3.6bn $10.9bn
14%
180
NATIONAL MARKETS
$9.4bn
57
COMMERCIAL VEHICLES R&D CENTERS
36%
CNH Industrial has confirmed its intention to separate its “On-Highway” and
“Off-Highway” businesses by Q1 2022 with no material impact expected on
CNH Industrial Capital Australia
Note: Source: CNH Industrial N.V. 20F, as of December 31, 2020; Revenue figures are excluding Other Activities, Unallocated Items and Adjustment & Eliminations
CONFIDENTIAL June 2021
CNH Industrial N.V. – 1Q2021 Update 7
Industrial Activities Financial / Business Update
▪ Long-established brands with sustained customer Industrial Activities Net Sales up 41% due to higher volumes
loyalty and valuable dealer network driven by strong industry demand, particularly in AG and C&SV,
together with favorable price realization, primarily in AG
▪ Unique Diversification by Region
Industrial Activities Adj. EBIT(1) $545mn, with all segments up
NET SALES (Q1 21) * year over year. AG adjusted EBIT margin above 13%, PT
above 9%, CE at 3.8%. C&SV adjusted EBIT of $76mn, the
$7.0Bn highest in Q1 since 2013
Free cash flow of Industrial Activities negative $0.4bn. Industrial
18% 20% Net Cash position at $0.6bn
10% BY
REGION Total assets of over $46.7bn with available liquidity of $13.9bn
NA (liquidity on LTM revenues ratio at 50%)
EU
SA Investment-grade rated by
52% RoW Fitch: BBB- Outlook: Stable (June 15, 2020)
Moody’s: Baa3 Outlook: Stable (December 31, 2020)
S&P: BBB Outlook: Stable (August 24, 2020)
Note: * Industrial Activities Net Sales: Excluding Other Activities, Unallocated Items & Adjustment & Eliminations 1. Non-GAAP measures
CONFIDENTIAL June 2021
8
CNH Industrial N.V. - Commitment to Sustainability: main 2020 achievements 1
CARBON FOOTPRINT OCCUPATIONAL SAFETY LIFE-CYCLE THINKING PEOPLE ENGAGEMENT
-8.3% 10,000 $108.9 93.9% 1,410 +48%
million
in CO2 natural gas spent on health of waste employees in supplier
emissions engines sold and safety recovered volunteered sustainability
per hour of during self-assessments
production working hours completed
72% 56% -5% 8.2% 11,210 $7 million
of electricity of key suppliers in employee of spare parts’ dealerships
invested
from renewable monitored for injury net sales from technical invested
in local
sources CO2 emissions frequency rate remanufactured training in local
communities
components sessions communities
completed
With a winning score of 89/100, CNH Industrial is confirmed as
the Industry Leader in the Dow Jones Sustainability World and
Europe Indices for the 10th consecutive year
(1) As of the year ending December 31, 2020 unless otherwise noted. Variations are vs 2019
CONFIDENTIAL June 2021
CNH Industrial Australia & New Zealand 9
Leading capital goods manufacturer and distributor
NET SALES Leadership position in Agriculture market across key segments
A$1.19BN ▪ Broadacre crops (Wheat, Barley, Canola) are among the largest drivers of
Powertrain demand for CNHI products
0.1%
▪ CNHI Australia has a strong competitive position with an established and loyal
customer base
Commercial Vehicles
22%
▪ Technology developments driving influence in brand selection and ever
increasing competitive market
2020 Combines High HP Tractors
Market Position #1 #2
Agricultural Equipment
69%
Commercial Vehicle and Construction segments
▪ CE is predominately targeting metropolitan market, while leveraging the AG
Construction Equipment
9% network for expansion outside the capital cities
▪ Less penetration by Financial Services, CV portfolio at 9% of CNHI Capital
Australia compare to 22% of CNHI Australia
CONFIDENTIAL June 2021
10
3. FINANCIAL SERVICES SEGMENT
CONFIDENTIAL June 2021CNH Industrial, Dealers and Farmers 11
Longstanding, Strong Relationships
• Operates in a mature market
• Relies on repeat customers
• Developed relationships over generations
• CNH Industrial Capital solidifies customer
bond
Dealers: Farmers:
• Rely on CNH Industrial Capital for • Have strong brand loyalty and are repeat customers
financing • Know their local dealer
• Located in rural communities • Rely on a strong relationship with dealer for parts
• Have been in business for many years and onsite service
• Know their customers and buying habits • Depend on their equipment for income
CONFIDENTIAL June 2021CNH Industrial Capital in Australia 12
Support sale of Industrial equipment via the financing of dealerships and end customers
PRODUCTS AND SERVICES
▪ Other Financial Products
▪ Supports all segments: ▪ Wholesale Floorplan
▪ Retail ▪ Dealer Loan
▪ Agriculture (Ag) ▪ Capital has legal title to all financed units (Bailment)
▪ Retail Loans ▪ Trade Finance
▪ Construction Equipment (CE) ▪ New and used equipment and parts
▪ Finance Leases ▪ Assigned Receivables
▪ Commercial & Specialty Vehicles (CV)
▪ Operating Leases
▪ Powertrain (PT)
ANZ Managed Portfolio (A$bn) ANZ Retail and Wholesale Originations (A$bn)
2.19
1.5 1.6 1.5 1.93
1.84
1.77 1.77
1.3 1.60
1.52
1.1 1.1
1.23
0.9
1.35
0.9 1.15
1.31
1.25
1.26
1.22
1.40
1.39
1.37
0.98
1.18
0.90
1.01
0.99
0.88
0.88
0.67
0.57
0.53
0.52
0.51
0.38
0.26
0.25
2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020
AG CE CV Retail Wholesale
*Includes Refinace
CONFIDENTIAL June 2021Agricultural Conditions 13
Consistent rainfall across eastern seaboard produced a strong harvest and a good recovery to the recent drought
Root Zone Soil Moisture: 31 Dec 2019 Root Zone Soil Moisture: 31 Dec 2020
YTD December Rainfall (mm)
1000
900
800
2016
700
600 2017
500 2018
400
2019
300
2020
200
100 5 Yr Avg
0 Source: Bureau of
GERALDTON WONGAN ESPERANCE CUMMINS SA RIVERTON SA HORSHAM VIC SWAN HILL VIC GRIFFITH NSW DUBBO NSW MOREE NSW DALBY QLD Meteorology
WA HILLS WA WA
CONFIDENTIAL June 2021Drought Impact and Response 14
Proactive restructuring of affected retail accounts
CONFIDENTIAL June 2021Covid-19 Impact and Response 15
COVID-19 Response: $2.2M repayments deferred 4 months
Assistance was provided on 308 contracts, as at 31 January, 33 contracts still being managed,
majority with payment arrangements in place which are being met.
Average arrears days at 96 continues to reduce, and arrears total $0.213M
CONFIDENTIAL June 2021Credit Performance 16
Drought - Strong credit performance through the cycle
Delinquencies / Total Managed Receivables
• High quality producers, professional farmers, are resilient, well resourced
and well prepared to manage drought in the normal course of their
0.77%
business. 0.64%
0.60% 0.58%
0.53%
• Successive good seasons 0.47%
0.41%
• Strong equity levels in farm properties and machinery
0.20%
• Farm management deposits at all time highs
• Past dues close to all time lows
2013 2014 2015 2016 2017 2018 2019 2020
8.0
Total ($blns) Farm Management Deposits Allowance for Credit Losses / Total Managed Receivables
6.0
2.8% 2.9%
4.0 2.6%
2.0
1.4%
0.0 1.0%
0.8% 0.8% 0.7%
Jun-99
Jun-00
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
2013 2014 2015 2016 2017 2018 2019 2020
Source: Department of Agriculture and Water Resources
CONFIDENTIAL June 2021Strong recovery rates 17
Strong recovery rates through the cycle
Portfolio Static Loss Curves - Gross Losses Portfolio Static Loss Curves - Net Losses
Months since Origination
CONFIDENTIAL June 2021CNH Industrial Capital Australia 18
Financials
CONFIDENTIAL June 2021Funding & Liquidity 19
Funding
ACT ACT ACT ACT ACT
2016 2017 2018 2019 2020
Interest Coverage Ratio
Net Earnings available for Interest (A$m) 91.92 91.61 92.52 88.47 78.19
Interest Expense (A$m) 40.80 45.45 54.04 53.20 39.28
Ratio 2.25 P 2.02 P 1.71 P 1.66 P 1.990
Target 1.05 1.05 1.05 1.05 1.05
Minimum Net Worth
Equity (A$m) - after dividends 147 P 160 P 165 P 138 P 140
Min 50 50 50 50 50
Net Earnings :
Earning before Interest, Taxation, Depreciation and Ammortisation (EBITDA)
CONFIDENTIAL June 2021Funding & Liquidity 20
Diversified unsecured funding with capital markets access
Description 2020 2017 2013
2021 Highlights
2* 1yr RCF - - $120M
13mth evergreen, committed $100M $100M -
• New public ABS transaction CNHICA
13mth evergreen, committed $100M $100M -
CART Series 2021-1 in May 2021
13mth evergreen, committed $50M - -
13mth evergreen, committed $80M - -
Uncommitted $50M - -
Uncommitted $50M - -
Uncommitted $25M $25M 2020 Highlights
Uncommitted $20M - -
Money Market Loan 1 (11am) $145M $25M - • New Trade Finance Loan facility of $50m
Trade Finance Loan#1 $50M - - in March 2020
Trade Finance Loan#2 $50M - -
Wholesale warehouse $275M $250M $200M • New private ABS transaction CNHICA
CART Series 2020-1 in August 2020
Retail warehouse $600M $650M $650M
MTN Programme $175M - -
CONFIDENTIAL June 2021CNH Industrial Capital Australia 21
Audit and Risk Management
▪ CNHICA is subject to annual external Audit (Ernst & Young), Global Internal Audit together with self-testing
▪ Internal Compliance officer
▪ CNHICA maintains
▪ Ongoing training of key personnel
▪ Training for Responsible Managers
▪ Annual probity checks for key personnel
▪ Consistent updating of Policies and Procedures to reflect system and operational changes
▪ Maintains compliance with key legislative and corporate governance obligations
▪ Code of Conduct / Conflict of Interest / Whistleblower policy
▪ Sarbanes Oxley (US public company requirement)
▪ AML / CTF program
▪ Privacy
▪ Maintains registrations of secured interests on Personal Property Securities Register
▪ Automated lodgement of new retail contracts on PPSR
▪ Automated de-registration of discharged retail security interests
▪ Annual Custody Audits performed in accordance with the requirements of the master trust deed and custodian agreements
CONFIDENTIAL June 202122
4. PROGRAMME OVERVIEW
CONFIDENTIAL June 2021A$ 1bln MTN Programme Overview 23
Summary
Issuer: CNH Industrial Capital Australia, an indirect wholly owned subsidiary of CNH Industrial N.V.
Support Agreement: Issuer benefits from a Support Agreement with its parent, CNH Industrial N.V. (BBB (Stable))
Fitch: BBB- (positive)
CNH Industrial N.V. Long Term Ratings Moodys: Baa3 (stable)
S&P: BBB (stable)
Issue: Unsecured Notes
Change of Control: 101% Plus Accrued and Unpaid Interest
Listing: None
Programme Rating (S&P): Aligns with CNH Industrial N.V. pursuant to the Support Agreement, amongst other considerations
To be added to general funds and used for working capital and other general corporate purposes, including,
Use of Proceeds: among other things, the purchase of receivables or other assets in the ordinary course of business, as well as
repayment of indebtedness as it becomes due
CONFIDENTIAL June 2021A$ 1bln MTN Programme Overview 24
Support Structure
Parent Company Financial Services
Australian Captive
Support CNH Industrial Capital
CNH Industrial N.V. Agreement Australia
▪ Fixed charge coverage ratio at least 1.05x
▪ Consolidated Tangible Net Worth of at least $50 million
▪ Ownership of at least 51%
CONFIDENTIAL June 202125
5. INDUSTRY UPDATE
CONFIDENTIAL June 20210
10
30
40
50
20
60
02-03
WA, 40%
03-04
Million Tonnes
04-05
05-06
06-07
07-08
08-09
09-10
10-11
SA, 21%
11-12
12-13
13-14
Production by State (19/20 s)
14-15
NSW, 11%
15-16
QLD, 2%
16-17
17-18
Australian Total Winter Crop
VIC, 26%
18 - 19
19 - 20 s
20 - 21 f
East coast recovery forecasted
Winter Crop Production
0
2
4
6
8
10
0
5
10
15
20
02-03
02-03
03-04
03-04
Million Tonnes
04-05
Million Tonnes
04-05
05-06
05-06
06-07
06-07
07-08 07-08
08-09 08-09
Source: Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), Australian Crop Report February 2021
09-10 09-10
10-11 10-11
11-12 11-12
Victoria
12-13 12-13
CONFIDENTIAL
13-14 13-14
14-15 14-15
New South Wales
15-16 15-16
16-17 16-17
17-18 17-18
18-19
18 -19
19 - 20 s
19 - 20 s
f ABARES forecast, s ABARES estimate
20 - 21 f
20 - 21 f
0.0
5.0
10.0
15.0
20.0
0
2
4
6
8
10
02-03 02-03
03-04 03-04
Million Tonnes
Million Tonnes
04-05 04-05
05-06 05-06
06-07 06-07
07-08 07-08
08-09 08-09
09-10 09-10
10-11 10-11
11-12 11-12
12-13 12-13
13-14 13-14
South Australia
14-15 14-15
Western Australia
15-16 15-16
16-17 16-17
17-18 17-18
18 - 19 18 - 19
19 - 20 s 19 - 20 s
June 2021
20 - 21 f 20 - 21 f
26Grain Prices 27
Tending counter-cyclical to production volumes
600
500
400
AUD / tonne
300 Domestic
International
200
100
0
1995
1996
1997
1998
1999
2000
2001
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2012
2013
2014
2015
2016
2017
2018
2019
2020
Source: Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), Australian Crop Report February 2021
CONFIDENTIAL June 2021Summary 28
Strategic relationship with well positioned Parent Company
Leading and profitable equipment lender
Disciplined underwriting and servicing
Profitable, IG captive with diverse funding base
CONFIDENTIAL June 2021THANK YOU! CONFIDENTIAL June 2021
6. CNH Industrial N.V. Financials
Appendix
CONFIDENTIAL June 2021CNH Industrial N.V. - Free Cash Flow and Debt Maturity Profile 31
as of March 31, 2021
($mn) Industrial Activities | Free Cash Flow (*)
763 (85) (873) (71) (70) (35) (371)
CASH INTEREST CHG IN CHG IN PROVISIONS. &
IA | ADJ EBITDA PP&E CAPEX (2) OTHER CHANGES IA FREE CASH FLOW
AND TAXES WORKING CAPITAL OTHERS (1)
Δ vs.
691 (6) 420 95 (7) (41) 1,152
Q1 2020
Change in Working Capital AVAILABLE Debt Maturity Profile ($bn)
($bn) LIQUIDITY (4)
Cash
inflow DEBT MATURITY SCHEDULE (3)
($12.7BN)
Cash
outflow
0.9
CHG IN 13.9 3.1 1.6 1.9 1.5 1.0 3.5
TRADE TRADE
INVENTORIES OTHER WORKING
RECEIVABLES PAYABLES
CAPITAL Mar-end ‘21 9M 21 2022 2023 2024 2025 Beyond
Q1 2020 Q1 2021 Cash Undrawn M/T unsecured Committed Lines Capital Market Bank Debt Other
(1) Including other cash flow items related to operating lease and buy-back activities. (3 ) Represents cash portion of debt maturities as of March 31 st , 2021
(*) Non-GAAP measures (reconciliation in appendix)
(2) Excluding assets sold under buy-back commitments and assets under operating leases. (4 ) Of which $0.9bn Restricted Cash
CONFIDENTIAL June 2021Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) 32
Q1 2021
Unallocated
($mn) Industrial
AG CE CV PT Items, Elim.
Activities
& Other
Consolidated Net income 425
Less: Consolidated Income tax (expense) benefit (157)
Consolidated Income before taxes 582
Less: Financial Services
Financial Services Net income 91
Financial Services Income taxes 33
Add back of the following Industrial Activities items:
Interest expenses, net of interest income and eliminations 66
Foreign exchange (gains) losses, net 18
Finance and non-service component of Pension and other post-employment
(34)
benefit costs (1)
Adjustments for the following Industrial Activities items:
Restructuring expenses 2 (1) 1 - - 2
Nikola investment fair value adjustment - - - - 35 35
Adjusted EBIT of Industrial Activities 399 25 76 115 (70) 545
(1) In the three months ended March 31, 2021, this item includes the pre-tax gain of $30 million as a result of the amortization over approximately 4.5 years of the
$527 million positive impact from the modification of a healthcare plan in the U.S.
CONFIDENTIAL June 2021Reconciliation of Net Income (Loss) to Adj. EBIT by Segment (US GAAP) 33
($mn) Q1 2020
Unallocated
Industrial
AG CE CV PT Items, Elim. &
Activities
Other
Consolidated Net income (loss) (54)
Less: Consolidated Income tax (expense) benefit 23
Consolidated Income (loss) before taxes (77)
Less: Financial Services
Financial Services Net income 80
Financial Services Income taxes 30
Add back of the following Industrial Activities items:
Interest expenses, net of interest income and eliminations 59
Foreign exchange (gains) losses, net (2)
Finance and non-service component of Pension and other post-employment
(30)
benefit costs (1)
Adjustments for the following Industrial Activities items:
Restructuring expenses 2 1 2 - - 5
Other discrete items - - - - 7 7
Adjusted EBIT of Industrial Activities 24 (83) (56) 31 (64) (148)
(1) In the three months ended March 31, 2020, this item includes the pre-tax gain of $30 million as a result of the amortization over approximately 4.5 years of the $527 million
positive impact from the modification of a healthcare plan in the U.S.
CONFIDENTIAL June 2021Reconciliation of Total Debt to Net Debt (US GAAP) 34
($mn) Consolidated Industrial Activities Financial Services
March 31, December 31, March 31, December 31, March 31, December 31,
2021 2020 2021 2020 2021 2020
Third party debt (23,805) (26,053) (6,286) (7,271) (17,519) (18,782)
Intersegment notes payable - - (1,148) (1,017) (1,169) (856)
Total (Debt) (1) (23,805) (26,053) (7,434) (8,288) (18,688) (19,638)
Cash and cash equivalents 7,059 8,785 6,590 8,017 469 768
Restricted cash 908 844 104 99 804 745
Intersegment notes
- - 1,169 856 1,148 1,017
receivable
Other current financial
164 94 164 94 - -
assets(2)
Derivatives hedging debt (2) 8 (2) 8 - -
Net Cash (Debt) (3) (15,676) (16,322) 591 786 (16,267) (17,108)
(1) Total (Debt) of Industrial Activities includes Intersegment notes payable to Financial Services of $1,148 million and $1,017 million as of March 31, 2021 and December 31, 2020, respectively. Total (Debt) of Financial Services includes
Intersegment notes payable to Industrial Activities of $1,169 million and $856 million as of March 31, 2021 and December 31, 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 $(21) million and $161 million as of March 31, 2021 and December 31, 2020, respectively.
CONFIDENTIAL June 2021Reconciliation of Cash and cash equivalents to Available liquidity (U.S. GAAP ) 35
($mn)
March 31, 2021 December 31, 2020
Cash and cash equivalent 7,059 8,785
Restricted cash 908 844
Undrawn committed facilities 5,755 6,148
Other current financial assets(1) 164 94
Available liquidity 13,886 15,871
(1) This item includes short-term deposits and investments towards high-credit rating counterparties
CONFIDENTIAL June 2021Reconciliation of Net cash provided by (used in) Operating Activities to
36
Free cash flow of Industrial Activities under U.S. GAAP
($mn) Q1 2021 Q1 2020
Net cash provided by (used in) Operating Activities 372 (532)
Less: Cash flows from Operating Activities of Financial Services net of eliminations 472 841
Change in derivatives hedging debt of Industrial Activities and other (11) 5
Investments in assets sold under buy-back commitments and operating lease assets of Industrial
(155) (98)
Activities
Operating cash flow of Industrial Activities (266) (1,466)
Investments in property, plant and equipment, and intangible assets of Industrial Activities (70) (63)
Other changes (1)
(35) 6
Free cash flow of Industrial Activities (371) (1,523)
(1) This item primarily includes change in intersegment financial receivables and capital increases in intersegment investments
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