BOSCH CONNECTED WORLD BERLIN MegaTrends Changing Our May 15 - 16, 2019 Business FRANCESCA PROTANO, M&A, CNH INDUSTRIAL AGENDA 1. CNH INDUSTRIAL OVERVIEW 2. MEGA TRENDS CHANGING ALL OUR BUSINESSES 3. IMPLICATIONS FOR THE AGRICULTURE SECTOR 4. DIGITALIZATION INFLUENCES OF CNH INDUSTRIAL SEGMENTS 2 CNH INDUSTRIAL 1. OVERVIEW 3 OUR HISTORY OF SUCCESSFUL ENTREPRENEURS 1842 1985 Case founded Case acquires by Jerome Increase Case International Harvester 1996 Acquisition of STEYR Landmaschinentechnik AG 1895 1986 2005 New Holland founded Ford buys New Holland, merging it by Abe Zimmerman with Ford’s tractor operations Fiat, Fiat-Kobelko, O&K, New Holland and Fiat Allis are united under the New Holland Construction brand 1918 1991 1999 Fiat, led by Giovanni Agnelli, FiatAgri purchases Case IH and builds first tractor Ford New Holland New Holland merge to form CNH Global TODAY 2011 2013 2005 Fiat Industrial merger with CNH Global to form CNH Industrial (dual listed on NY and Milan Stock Exchanges) 1864 1937 1975 1986 IVECO Motors and Fiat’s Fiat spins out its Conrad Dietrich Lancia Veicoli Fiat forms Iveco Acquisition automotive engine department Commercial Vehicles Magirus starts Industriali open brand by merging of Astra Piacenza merge into FPT, grouping all and Powertrain his company facility for the operations of several automotive and industrial businesses and its production of truck brands powertrain activities. 87% ownership in military trucks CNH Global to form Fiat Industrial 4 OUR SEGMENTS FINANCIAL SERVICES AND PRODUCTS A GLOBAL LEADER IN EQUIPMENT FINANCE, SUPPORTING CUSTOMERS AND DEALERS WITH TAILOR-MADE SOLUTIONS POWERTRAIN GLOBAL LEADER IN HIGHLY REGULATED MARKETS, PRODUCING MORE THAN HALF A MILLION INDUSTRIAL ENGINES A YEAR AND MARKET LEADER AGRICULTURE IN ALTERNATIVE FUELS POWERTRAINS SECOND LARGEST MANUFACTURER OF AGRICULTURAL MACHINERY 5 COMMERCIAL & SPECIALTY VEHICLES FIFTH LARGEST MANUFACTURER OF COMMERCIAL VEHICLES AND THE EUROPEAN LEADER IN NATURAL GAS COMMERCIAL VEHICLES AND BUSES CONSTRUCTION A GLOBAL PLAYER IN THE MANUFACTURING OF CONSTRUCTION EQUIPMENT 5 ONE OF THE LARGEST CAPITAL GOODS COMPANIES ON THE PLANET KEY FIGURES 12 64, 625 BRANDS EMPLOYEES 6 66 REVENUES 180 MANUFACTURING $29.7 Bn NATIONAL PLANTS MARKETS 54 $1.1 Bn R&D CENTERS in R&D SPENDING 6 OUR COMMITMENT TO SUSTAINABILITY 8th 9629 YEAR AS INDUSTRY LEADER IN DOW JONES SUSTAINABILITY WORLD AND EUROPE ACTIVE PATENTS OWNED INDEXES as of 2018 $ 5.7 $ 79 MILLION INVESTED IN LOCAL COMMUNITIES MILLION SPENT ON HEALTH AND SAFETY 56% $ 38 OF ELECTRICAL ENERGY FROM MILLION P.A. SPENT ON PROTECTING RENEWABLE SOURCES THE ENVIRONMENT 92% 95% OF PROCUREMENT SPENDING OF WASTE RECOVERED WITH LOCAL SUPPLIERS 7 Data refers to 2017; variations are compared with previous year MEGA TRENDS 2. CHANGING ALL OUR BUSINESSES 8 MEGA TRENDS ARE CHANGING ALL OUR BUSINESSES ALTERNATIVE FUELS DIGITALIZATION AUTOMATION CNH INDUSTRIAL INVESTS USD 500 M P.A. IN THESE TRENDS 9 DIESEL TO LNG TO ELECTRIFICATION AND FUEL CELLS LNG is a bridging strategy for heavy duty applications . Reduction of NO2 emissions by 90% . Decreases particulate matter by 99% . Decreases CO2 up to 15% – up to 95% with biomethane In 2018 FPT launched the e-Powertrain organization in Arborn, Switzerland . Hydrogen Fuel Cell Concept Powertrain, developed by FPT Industrial for heavy duty commercial applications . New E-Axles, and Diesel-Hybrid and Gas- Hybrid Powertrains 10 DIGITALIZATION DRIVES PRECISION TECHNOLOGIES AND TELEMATICS AND INFLUENCES ALL OUR SEGMENTS: . Remote service tools provide remote diagnosis, software updates and fault codes reset . Smart Technology for in-house automation systems, increased sensor usage and advanced automation . Assisted drive for fully automated finish grading Control Room to monitor truck fleets Remote service tools - FPT Industrial Telematics Kit Precision construction - Telematics solution 11 AUTOMATION AND AUTONOMOUS DRIVING . Benefit in terms of productivity with the introduction of autonomous technology . Increased safety and lower emissions, with benefits on the total cost of ownership . Increased operators’ efficiency through assisted operation Advanced driving assist systems: Electronic Brake System (EBS) with the new Brake Assistant System (BAS) ESP available on the full range of 4x2 tractors Hill Holder for facilitating hill starts Adaptive Cruise Control Lane Departure Warning System 12 IMPLICATIONS 3. FOR THE AGRICULTURE SECTOR 13 DIGITALIZATION ENABLING PRECISION FARMING AND TELEMATICS . Open connectivity empowers our customers to leverage data, agronomy and technology to make the best decisions . Strategic partnership with AgDNA, The Climate Corp., Farmers Edge, extending planning, analysis, execution and agronomic information . CNH Industrial’s NexGen digital platform will launch this year, allowing for superior on-board connectivity for all our brands 14 AUTONOMOUS DRIVING & AUTOMATION . Productivity improvement and downtime reduction . Development and monitoring of tailored agronomic plans . Prevention of driving accidents due to human error . Building on our leadership position, we continue to automate all harvesting processes from forage to crops to grapes. 15 THE DATA ECOSYSTEM 3rd Party Services Tractor Service Delivery Platform Electronic backdoor to vehicle Electronically or in- equipped with the Connectivity person module Data input/output, conversion and storage Telematics portal API or Web Gather machine data Give the possibility to share data with into the software third party services in order to receive insights and help in decision making Category Services Farm Management Task/Planning, reporting, data visualization, livestock Accounting Finance, administration, personnel management Precision Agriculture Mapping, VRA, Yield monitoring Agronomy Crop health, weather, weed/pest control, irrigation,.. Legal Regulations, Legal documentation Food Traceability Quality, Certifications 16 DIGITALIZATION INFLUENCES 4. ALL CNH INDUSTRIAL SEGMENTS 17 CONTROL ROOM CONCEPT Improve the Customer Experience with remote monitoring and management combined with consumer sentiment to proactively engage with customers, and a comprehensive, integrated service approach to customer care Reduce Costs and Deliver Better Service with predictive maintenance and other advanced services that automate action, preempt equipment failure and provide a first-time fix every time Create High Level Service by supporting the creation of end-to-end digital services and service-centric relationships that provide significant value for customers 18 CNH INDUSTRIAL CONTROL ROOM 19 THANK YOU!.