EX-99.1

EX-99.1 2 d270136dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

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

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


		PRESS RELEASE

AGRICULTURE

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

at c.c.^(*)

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

CONSTRUCTION

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

at c.c.^(*)

Net sales ($ million)

3,081

2,170

+42.0%

+40.9%

Adjusted EBIT ($ million)

(184

)

+274

Adjusted EBIT margin

2.9%

(8.5

+1,140

bps

COMMERCIAL AND

SPECIALTY VEHICLES

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.^(*)

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

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.^(*)

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

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.^(*)

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


		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

Consolidated revenues

9,072

+9% c.c.^(*)

Adjusted EBIT of Industrial Activities

401

-119

of which Net sales of Industrial Activities

8,552

+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

at c.c.^(*)

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

Q4 2021

Q4 2020

Change

at c.c.^(*)

Net sales ($ million)

844

752

12.2%

+13.2%

Adjusted EBIT ($ million)

+10

Adjusted EBIT margin

2.4%

1.3%

+110

bps



COMMERCIAL AND SPECIALTY VEHICLES

	Q4 2021		Q4 2020		Change		Change at c.c.^()*
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



POWERTRAIN

		Q4 2021		Q4 2020		Change		Change at c.c.^()*
	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

Q4 2021

Q4 2020

Change

at c.c.^(*)

Revenues ($ million)

533

485

+9.9%

+10.4%

Net income ($ million)

112

+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


		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


		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


		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


		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


		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


		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


		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
($ million)		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
($ million)	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)

(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)

(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)

(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 and Specialty 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⁾

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
($ million)	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)

(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

)

⁽³⁾

(4,570

)

(955

)

(1,015

)

⁽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

)

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)

(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)


		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⁾

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

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

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 Statementfor 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:

(*)


		26