01 Group Financials Target

8/6/2019 01 Group Financials Target

1/15


2/15

2Lingotto - November 8 & 9, 2006

2007-10 P lan Group Financial Highlights

Continuing operating performance improvements across all

businesses

Group revenues at ~67bn in 2010 (2005-10 CAGR of 7.6%)

2010 Group trading profit at ~5bn, 5x 2005 trading profit

Year over year improvement at all businesses

2010 net income projected at ~3.5bn Sound capex & R&D spending to support growth

~16bn 2007-10

1.26x D&A Net cash-on-hand of ~3bn in 2010, after cumulative

dividend pay-out of ~2bn in plan period (assuming 25%

pay-out ratio)


3/15


2007-10 P lan Group Financial Targets

2005-10 CAGR revenue of 7.6%

2010 trading margin 7.2% -7.8% , trading profit target ~5bn

(bn)

~67~63

~58~54

46.54.5%

5.9%

6.7%

7.2%

3.7%

5.1%

6.5%

7.3%

7.8%

3.2%

2.1%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2005A 2006E 2007E 2008E 2009E 2010E0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Revenues Trading margin range - Low Trading margin range - High


4/154Lingotto - November 8 & 9, 2006

2007E Autos CNH Trucks FPT Marelli Elim.&Oth. 2010E

2007-10 P lan - Revenues Growth by Businesses

~54

~67

8

2.5

1

1.5

1 -1bn


5/155Lingotto - November 8 & 9, 2006

2007-10 P lan - Net Industrial Debt/Equity

Industrial Net Debt 1.92 x 0.34 x 0.25 x 0.18 x 0.06 x n.s. n.s.

Group Equity

11.0

15.5

3.22.0

0.8

(3.0)

18.5

9.4

13.0

10.0

4.9

(0.7)

2.5

9.4

-5.0

0.0

5.0

10.0

15.0

20.0

2004A 2005A 2006E 2007E 2008E 2009E 2010E

Equity Industrial Net Debt


6/15


2007-10 P lan - Dividends

Dividend policy

applying a 25% ratio on yearly net income (w/o unusual item)

bn

Total 2bn overfour years

0.2

0.6

0.8

0.4

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

2007 2008 2009 2010


7/15


2007-10 P lan - EBITDA

bn

3.6

5.5

7.8

8.6

6.7

4.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2005A 2006E 2007E 2008E 2009E 2010E


8/15


2007-10 Plan - Industrial Capex/Depreciation Ratio

1.32

1.31

1.34

1.22

1.12

1.25 1.32

1.03

1.19

1.20 1.211.10

0.70

0.80

0.90

1.00

1.10

1.20

1.301.40

2005A 2006E 2007E 2008E 2009E 2010E

Capex / Depreciation Capex & R&D / Depreciation


9/15


2007-10 P lan - Industrial Capex andCapex/Depreciation Ratio

mn

1.03

1.12

1.22

1.32

1.25

1.32

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2005A 2006E 2007E 2008E 2009E 2010E

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Auto CNH Iveco Other Ratio


10/15


2007-10 P lan - R&D Expenses

mn

2.9%

2.7%

2.9%3.1% 3.1%

3.2%

0

500

1,000

1,500

2,000

2005A 2006E 2007E 2008E 2009E 2010E

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Auto CNH Iveco Other R&D on Sales


11/15


Share Buy-back Philosophy

Generally favored, if

EPS accretive and

consistent with quickest possible route tore-establishment of investment grade rating

for the Group

Subject to

Availability of corporate reserves

Availability of funding

Board of Directors and

Shareholders approval


12/15


2007-10 P lan Simulation of Down Cycle 2008

Assumptions

Base case 2008 plan

Volumes down ~20% across all sectors concurrently

Cost containment within 6 months

Results

Sales ~10bn lower

2.3bn reduction in trading profit without corrective actions

No sector negative

0.5bn in trading profit recoverable through interventions

Net income after interventions down 65%, still positive in

excess of 0.5bn

Net debt levels up after working capital adjustments 2bn


13/15


2008 Plan Simulated Down Cycle Margins

Down cycle group margins

w ithout interventions ~2.0-2.3%

7.8%

10.4%

4.0%4.4% 4.9%

6.2%

4.6%

7.1%

1.6%

3.9%

2.2%3.5%

0.0%

2.0%

4.0%6.0%

8.0%

10.0%

12.0%

Group Auto CNH Iveco FPT Marelli

Targeted Margins Down Cycle Margins


14/15


2007-10 P lan Investments Income

Auto 85Of which: Industrial 25

Fin. Services 60

CNH 30Of which: Industrial 25

Fin. Services 5

Iveco 13Of which: Industrial 6

Fin.Services 7

Auto 210Of which: Industrial 125

Fin. Services 85

CNH 30Of which: Industrial 25

Fin. Services 5

Iveco 40Of which: Industrial 30

Fin.Services 10

FPT 35

85

21030

30

13

40

35

5

2007E 2010E

Auto CNH Iveco FPT Other

130

320

mn

2


15/15


2007-10 P lan Financial Targets

*Assuming dividend pay-out at a rate of 25% of annual net income (~2.0bn over period)

2007 2008

GroupRevenues

Group

TradingProfit/ margin

GroupNet Income

2005-10 Revenue CAGR 7.6%

3.4-3.6bn

EPS 2.65/ 2.80

Group NetIndustrial

Debt*

~5.0bn7.2%-7.8%

Net debt toGroup equity

01 Group Financials Target

Documents

Transcript of 01 Group Financials Target