Market Overview

CNH Industrial reported 2018 first quarter consolidated revenues up 17% to $6.8 billion, net income at $202 million, or $0.14 per share. Net industrial debt(3)(4) at $1.9 billion

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CNH Industrial reported 2018 first quarter consolidated revenues up 17% to $6.8 billion, net income at $202 million, or $0.14 per share. Net industrial debt(3)(4) at $1.9 billion

Financial results presented under U.S. GAAP(1)(2)

  • Industrial Activities net sales up 19% (up 11% on a constant currency basis) driven by strong performance in all segments
  • Adjusted EBITDA(3)(4) of Industrial Activities increased 40% to $547 million, with an adjusted EBITDA margin of 8.7%
  • Adjusted net income(3)(4) was $204 million in the first quarter of 2018, with adjusted diluted EPS(3)(4) of $0.14
  • Net industrial debt was $1.9 billion at March 31, 2018, $1.0 billion higher than at December 31, 2017 as a result of normal seasonality in working capital in the first quarter
  • Full year guidance increased to the upper-end of the range, with net sales of Industrial Activities of approximately $28 billion and adjusted diluted EPS of $0.65-0.67. Net industrial debt guidance confirmed to between $0.8 billion and $1.0 billion
  CNH INDUSTRIAL
Summary of Results  ($ million except EPS)
   
   
    Three Months ended March 31,  
    2018 2017 Change  
  Consolidated revenues 6,773 5,785 17.1%  
  Net income (loss) 202 46 156  
  Adjusted net income 204 55 149  
           
  Basic EPS ($) 0.14 0.03 0.11  
  Diluted EPS ($) 0.14 0.03 0.11  
  Adjusted diluted EPS ($) 0.14 0.04 0.10  
     

London (UK)   (April 27, 2018) CNH Industrial N.V. (NYSE:CNHI) today announced consolidated revenues of $6,773 million for the first quarter of 2018, up 17% compared to the first quarter of 2017. Net sales of Industrial Activities were $6,300 million in the first quarter of 2018, up 19% compared to the first quarter of 2017. Net income was $202 million for the first quarter of 2018.

Adjusted net income was $204 million for the first quarter of 2018 compared to $55 million in the first quarter of 2017, with an adjusted diluted EPS of $0.14 ($0.04 in the first quarter of 2017).

Adjusted EBITDA of Industrial Activities was up 40% to $547 million for the first quarter of 2018 compared to $391 million for the first quarter of 2017, with an adjusted EBITDA margin of 8.7%, up 1.3 percentage points ("p.p.") compared to the first quarter of 2017.

Income taxes were $63 million in the first quarter of 2018 ($51 million in the first quarter of 2017). Adjusted income taxes(1)(2) for the first quarter of 2018 were $64 million ($54 million in the first quarter of 2017). The adjusted effective tax rate (adjusted ETR)(1)(2) of 26% (59% in the first quarter of 2017) improved as a result of a favorable geographic mix of earnings, and the lower U.S. tax rate. For the full year 2018, the Company updates its expectation of an adjusted ETR of approximately 30%.

Net industrial debt of $1.9 billion at March 31, 2018 increased by $1.0 billion from December 31, 2017, as a result of normal seasonality in working capital in the first quarter. Total debt of $24.7 billion at March 31, 2018, was down $1.2 billion compared to December 31, 2017 primarily as a result of the repayment at maturity of the remaining outstanding CNH Industrial Finance Europe S.A. 6.25% Notes of approximately $1 billion. At March 31, 2018, available liquidity(1)(2) was $7.6 billion, down $1.7 billion compared to December 31, 2017. During the first quarter of 2018, the Company repurchased 6.8 million of its common shares for a total amount of $90 million under the buy-back program authorized by the Annual General Meeting of Shareholders ("AGM") held on April 14, 2017. The program has been reauthorized and increased to $700 million from $300 million. Furthermore, in April 2018, the Company repaid at maturity the outstanding $600 million of the CNH Industrial Capital LLC 3.625% Notes from available cash.

On April 16, 2018, the Company announced that, as a consequence of a favorable judgment issued by the United States Supreme Court in February 2018, the Company determined to modify the healthcare benefits (the "Benefits") provided to certain of the Company's U.S. retirees to make them consistent with the Benefits provided to current eligible CNH Industrial retirees who had been represented by the UAW Union. These Benefits modifications are estimated to result in a reduction of the plan liability by approximately $500 million to $550 million in the second quarter of 2018.

Segment Results

  CNH INDUSTRIAL
Revenues by Segment  ($ million)
     
 
    Three Months ended March 31,  
    2018 2017 % change % change excl. FX(1)  
  Agricultural Equipment 2,579 2,240 15.1 10.8  
  Construction Equipment 682 502 35.9 31.5  
  Commercial Vehicles 2,495 2,125 17.4 4.7  
  Powertrain 1,186 1,001 18.5 5.2  
  Eliminations and other (642) (578) - -  
  Total Industrial Activities 6,300 5,290 19.1 10.6  
  Financial Services 502 512 -2.0 -4.1  
  Eliminations and other (29) (17) - -  
  Total 6,773 5,785 17.1 9.2  
 "Change excl. FX" or "constant currency" is a non-GAAP financial measure. Refer to the "About this Press Release" and "Non-GAAP Financial Information" sections of this press release for information regarding non-GAAP financial measures.


  CNH INDUSTRIAL
Adjusted EBITDA by Segment  ($ million)
       
   
      Three Months ended March 31,    
    2018 2017 $ change 2018 adjusted EBITDA margin 2017 adjusted EBITDA margin    
  Agricultural Equipment 265 194 71 10.3% 8.7%    
  Construction Equipment 16 (15) 31 2.3% (3.0)%    
  Commercial Vehicles 206 142 64 8.3% 6.7%    
  Powertrain 129 104 25 10.9% 10.4%    
  Unallocated items, eliminations and other (69) (34) (35) - -    
  Total Industrial Activities 547 391 156 8.7% 7.4%    
  Financial Services 210 192 18 41.8% 37.5%    
  Eliminations and other - - - - -    
  Total 757 583 174 11.2% 10.1%    
       


  CNH INDUSTRIAL
Adjusted EBIT(1)(2) by Segment  ($ million)
       
   
      Three Months ended March 31,    
    2018 2017 $ change 2018 adjusted EBIT margin 2017 adjusted EBIT margin    
  Agricultural Equipment 186 115 71 7.2% 5.1%    
  Construction Equipment 0 (31) 31 0.0% (6.2)%    
  Commercial Vehicles 49 17 32 2.0% 0.8%    
  Powertrain 95 74 21 8.0% 7.4%    
  Unallocated items, eliminations and other (69) (34) (35) - -    
  Total Industrial Activities 261 141 120 4.1% 2.7%    
  Financial Services 143 126 17 28.5% 24.6%    
  Eliminations and other - - - - -    
  Total 404 267 137 6.0% 4.6%    
  This item is a non-GAAP financial measure. Refer to the "About this Press Release" and "Non-GAAP Financial Information" sections 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.    

Agricultural Equipment's net sales increased 15% in the first quarter of 2018 compared to the first quarter of 2017 (up 11% on a constant currency basis). The increase was the result of higher sales volumes and positive net price realization. Industry demand was overall flat, with strong industry volume in APAC and lower demand in LATAM.

Adjusted EBIT was $186 million in the first quarter of 2018 ($115 million in the first quarter of 2017). Adjusted EBIT margin increased 2.1 p.p. to 7.2% compared to the first quarter of 2017. The increase was due to favorable volume, better mix, and higher production levels, with NAFTA row crop production matching retail demand, as a result of an achieved balanced inventory of used equipment. Price realization, net of a negative foreign exchange transaction impact, represented 2.5% of revenues, and was partially offset by raw material cost increases and higher overhead costs. The Company continues to invest in its product development program for precision farming and compliance with Stage V emissions requirements.

Construction Equipment's net sales increased 36% in the first quarter of 2018 compared to the first quarter of 2017 (up 32% on a constant currency basis), as a result of a solid rebound in worldwide demand and market share gains across most regions.

Adjusted EBIT achieved breakeven in the first quarter of 2018 from a negative adjusted EBIT of $31 million in the first quarter of 2017. Results were favorably impacted by higher sales volume due to improved end-user demand, as well as the related 30% increase in production. Pricing conditions remain favorable, more than offsetting unfavorable foreign exchange impact and raw material cost increases. The order book is up approximately 20% relative to the prior year period.

Commercial Vehicles' net sales increased 17% in the first quarter of 2018 compared to the first quarter of 2017 (up 5% on a constant currency basis), primarily as a result of higher industry volumes in the light commercial vehicle market in Europe. Net sales increased in APAC and were flat in LATAM.

Adjusted EBIT was $49 million for the first quarter of 2018 (up from $17 million in the first quarter of 2017). Adjusted EBIT margin increased 1.2 p.p. to 2.0% compared to the first quarter of 2017. The increase was mainly due to favorable end-user demand in light commercial vehicles, improved pricing and manufacturing efficiencies, partially offset by increased spending in new product development initiatives.

Powertrain's net sales increased 19% in the first quarter of 2018 compared to the first quarter of 2017 (up 5% on a constant currency basis), as a result of higher sales volume in engine applications. Sales to external customers accounted for 48% of total net sales (45% in the first quarter of 2017).

Adjusted EBIT was $95 million for the first quarter of 2018, a $21 million increase compared to the first quarter of 2017, with an adjusted EBIT margin of 8.0%, up 0.6 p.p. compared to the first quarter of 2017, as a result of the higher volumes and manufacturing efficiencies.

Financial Services' revenues totaled $502 million in the first quarter of 2018, a decrease of 2% compared to the first quarter of 2017.

In the first quarter of 2018, retail loan originations (including unconsolidated joint ventures) were $2.2 billion, up $0.3 billion compared to the first quarter of 2017. The managed portfolio (including unconsolidated joint ventures) was $26.5 billion as of March 31, 2018 (of which retail was 62% and wholesale 38%), up $1.8 billion compared to March 31, 2017. Excluding the impact of currency translation, the managed portfolio increased $0.5 billion compared to the same period in 2017.

Net income was $103 million in the first quarter of 2018, an increase of $16 million compared to the first quarter of 2017, primarily due to a better performance in EMEA and LATAM, and due to the lower U.S. tax rate.

2018 Outlook(1)

As a result of the stronger than anticipated results in the first quarter of 2018 and positive developments in end-user demand, CNH Industrial is increasing its net sales and adjusted diluted EPS guidance for the full year 2018 to the upper-end of its range as follows:

  • Net sales of Industrial Activities of approximately $28 billion;
  • Adjusted diluted EPS(2) of $0.65 to $0.67;
  • Net industrial debt at the end of 2018 unchanged at between $0.8 billion and $1.0 billion.

About CNH Industrial

CNH Industrial N.V. (NYSE:CNHI) is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and STEYR for tractors and agricultural machinery; CASE and New Holland Construction for earth moving equipment; IVECO for commercial vehicles; IVECO BUS and Heuliez Bus for buses and coaches; IVECO ASTRA for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions. More information can be found on the corporate website: www.cnhindustrial.com

About this Press Release

On January 1, 2018, the Company adopted, on a retrospective basis, updated FASB accounting standards for revenue recognition (ASC 606), retirement benefits accounting (ASU 2017-07) and cash flow presentation (ASU 2016-18). 2017 figures presented in this press release have been recast to reflect the adoption of such updated accounting standards.

Furthermore, concurrently with the change in accounting standards, the Company reviewed the metrics on which the operating segments will be assessed. Effective January 1, 2018, the Chief Operating Decision Maker began to assess segment performance and make decisions about resource allocation based upon Adjusted EBIT and Adjusted EBITDA.

As such, we have introduced Adjusted EBIT and Adjusted EBITDA as new non-GAAP measures in our earnings releases this year. These measures replaced our previous Operating Profit non-GAAP measure. The Company believes Adjusted EBIT and Adjusted EBITDA more fully reflect segment and consolidated profitability. See "Non-GAAP Financial Information" for information about these measures, including how CNH Industrial calculates them.

On April 16, 2018, the Company published a presentation and a webcast to summarize the key impacts on its prior periods' consolidated financial statements deriving from the adoption of the new accounting standards, as well as the introduction of the new metrics Adjusted EBIT and Adjusted EBITDA.

Additional Information

Today, at 3:30 p.m. CEST / 2:30 p.m. BST / 9:30 a.m. EDT, management will hold a conference call to present 2018 first quarter results to financial analysts and institutional investors. The call can be followed live online at: http://bit.ly/CNH_Industrial_Q1_2018 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.

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 results and allow management and investors to assess CNH Industrial's and our segments' operating trends, 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 and our business segments' core operations. These non-GAAP financial measures have no standardized meaning presented in U.S. GAAP or EU-IFRS and are unlikely to be comparable to other similarly titled measures used by other companies due to potential differences between the companies in calculations. As a result, the use of these non-GAAP measures has limitations and they should not be considered as substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP and/or EU-IFRS.

CNH Industrial non-GAAP financial measures are defined as follows:

  • Adjusted EBIT under U.S. GAAP: is defined as net income (loss) before income taxes, interest expenses of Industrial Activities, net, restructuring expenses, the finance and non-service component of pension and other post-employment benefit costs, foreign exchange gains/(losses), 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 EBITDA under U.S. GAAP: is defined as Adjusted EBIT plus depreciation and amortization (including on assets sold under operating leases and assets sold under buy-back commitments).
  • Adjusted EBIT under EU-IFRS: is defined as profit/(loss) before taxes, financial income/(expense) of Industrial Activities, restructuring costs, and certain non-recurring items.
  • Adjusted EBITDA under EU-IFRS: is defined as Adjusted EBIT plus depreciation and amortization (including on assets sold under operating leases and assets sold under buy-back commitments).
  • 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.
  • 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 Debt and Net Debt of Industrial Activities (or Net Industrial Debt): Net Debt is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash and derivative hedging debt. CNH Industrial provides the reconciliation of Net 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 Debt of Industrial Activities.
  • Available Liquidity: is defined as cash and cash equivalents plus restricted cash and undrawn committed facilities.
  • 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.

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.

Forward-looking statements

All statements other than statements of historical fact contained in this earning release including statements regarding our 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, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. These statements may include terminology such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "outlook", "continue", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "prospects", "plan", or similar terminology. Forward-looking statements 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 other assumptions underlying any of the forward-looking statements prove to be incorrect, 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 many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products; general economic conditions in each of our markets; changes in government policies regarding banking, monetary and fiscal policies; legislation, particularly relating 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; 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; a decline in the price of 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 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; our pension plans and other post-employment obligations; political and civil unrest; volatility and deterioration of capital and financial markets, including possible effects of "Brexit", terror attacks in Europe and elsewhere, and other similar risks and uncertainties and our success in managing the risks involved in the foregoing. Further information concerning factors, risks, and uncertainties that could materially affect the Company's financial results is included in our annual report on Form 20-F for the year ended December 31, 2017, prepared in accordance with U.S. GAAP, and in the Company's EU Annual Report at December 31, 2017, prepared in accordance with EU-IFRS. Investors should refer to and consider the incorporated information on risks, factors, and uncertainties in addition to the information presented here.

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. Our actual results could differ materially from those anticipated in such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update or revise publicly our forward-looking statements. Further information concerning CNH Industrial and its businesses, 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").All future written and oral forward-looking statements by CNH Industrial or persons acting on the behalf of CNH Industrial are expressly qualified in their entirety by the cautionary statements contained herein or referred to above.

Contacts                                                                                       

Media Inquiries                                                                                                              Investor Relations

United Kingdom                                                                                                               United Kingdom

Richard Gadeselli                                                                                                            Federico Donati
Tel: +44 207 7660 346                                                                                                      Tel: +44 207 7660 386

Laura Overall                                                                                                                    United States
Tel: +44 207 7660 338
                                                                                                                                           Noah Weiss
                                                                                                                                           Tel: +1 630 887 3745

CNH INDUSTRIAL N.V.
Condensed Consolidated Statements of Operations
For The Three Months Ended March 31, 2018 and 2017
(Unaudited)

(U.S. GAAP)

($ million) Three Months Ended March 31,
2018   2017(*)
Revenues      
Net sales 6,300   5,290
Finance, interest and other income 473   495
TOTAL REVENUES 6,773   5,785
Costs and Expenses      
Cost of goods sold 5,256   4,482
Selling, general and administrative expenses 590   539
Research and development expenses 227   191
Restructuring expenses 3   12
Interest expense 200   219
Other, net 251   263
TOTAL COSTS AND EXPENSES 6,527   5,706
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES 246   79
Income tax (expense) (63)   (51)
Equity in income of unconsolidated subsidiaries and affiliates 19   18
NET INCOME (LOSS) 202   46
Net income (loss) attributable to noncontrolling interests 6   3
NET INCOME (LOSS) ATTRIBUTABLE TO CNH INDUSTRIAL N.V. 196   43
       
(in $)      
Earnings (loss) per share attributable to common shareholders      
Basic 0.14   0.03
Diluted 0.14   0.03
Cash dividends declared per common share -   -

Notes:
(*)     2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the updated accounting standards for revenue recognition (ASC 606) and retirement benefits accounting (ASU 2017-07).

CNH INDUSTRIAL N.V.
Condensed Consolidated Balance Sheets
As of March 31, 2018 and December 31, 2017
(Unaudited)

(U.S. GAAP)

($ million)     March 31, 2018   December 31, 2017(*)
ASSETS          
Cash and cash equivalents     3,615   5,430
Restricted cash     773   770
Trade receivables, net     542   496
Financing receivables, net     19,488   19,795
Inventories, net     7,421   6,452
Property, plant and equipment, net     6,770   6,831
Investments in unconsolidated subsidiaries and affiliates     563   561
Equipment under operating leases     1,781   1,845
Goodwill     2,469   2,472
Other intangible assets, net     783   792
Deferred tax assets     879   852
Derivative assets     104   77
Other assets     2,007   1,925
TOTAL ASSETS     47,195   48,298
LIABILITIES AND EQUITY          
Debt     24,650   25,895
Trade payables     6,299   6,060
Deferred tax liabilities     96   94
Pension, postretirement and other postemployment benefits     2,315   2,300
Derivative liabilities     108   98
Other liabilities     9,607   9,594
Total Liabilities     43,075   44,041
Redeemable noncontrolling interest     26   25
Equity     4,094   4,232
TOTAL LIABILITIES AND EQUITY     47,195   48,298

Notes:
(*)     2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the updated accounting standard for revenue recognition (ASC 606).

CNH INDUSTRIAL N.V.
Condensed Consolidated Statements of Cash Flows
For The Three Months Ended March 31, 2018 and 2017
(Unaudited)

(U.S. GAAP)

($ million) Three Months Ended March 31,
2018 2017(*)
Operating activities:    
Net income (loss) 202 46
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization expense, net of assets under operating
leases and assets sold under buy-back commitments
185 177
Depreciation and amortization expense of assets under operating leases
and assets sold under buy-back commitments
168 139
Loss from disposal of assets - -
Undistributed income (loss) of unconsolidated subsidiaries 10 8
Other non-cash items 50 38
Changes in operating assets and liabilities:    
Provisions (126) (73)
Deferred income taxes (24) (24)
Trade and financing receivables related to sales, net 185 201
Inventories, net (755) (564)
Trade payables 145 198
Other assets and liabilities (114) (132)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (74) 14
Investing activities:    
Additions to retail receivables (959) (846)
Collections of retail receivables 1,089 1,050
Proceeds from the sale of assets, net of assets under operating leases and
assets sold under buy-back commitments
1 2
Expenditures for property, plant and equipment and intangible assets, net of
assets under operating leases and assets sold under buy-back commitments
(62) (74)
Expenditures for assets under operating leases and assets sold under buy-back
commitments
(305) (393)
Other (47) (72)
NET CASH USED IN INVESTING ACTIVITIES (283) (333)
Financing activities:    
Net increase (decrease) in debt (1,428) (947)
Dividends paid (1) (1)
Other (90) -
NET CASH USED IN FINANCING ACTIVITIES (1,519) (948)
Effect of foreign exchange rate changes on cash and cash equivalents 64 80
DECREASE IN CASH AND CASH EQUIVALENTS (1,812) (1,187)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 6,200 5,854
CASH AND CASH EQUIVALENTS, END OF PERIOD 4,388 4,667

Notes:
(*)     2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the updated accounting standards for revenue recognition (ASC 606) and cash flow presentation (ASU 2016-18).

CNH INDUSTRIAL N.V.
Supplemental Statements of Operations
            For The Three Months Ended March 31, 2018 and 2017
(Unaudited)

(U.S. GAAP)


Industrial Activities   Financial Services
($ million) Three Months Ended March 31,   Three Months Ended March 31,
2018 2017(*)   2018 2017(*)
Revenues          
Net sales 6,300 5,290   - -
Finance, interest and other income 27 36   502 512
TOTAL REVENUES 6,327 5,326   502 512
Costs and Expenses          
Cost of goods sold 5,256 4,482   - -
Selling, general and administrative expenses 527 474   63 65
Research and development expenses 227 191   - -
Restructuring expenses 3 11   - 1
Interest expense 120 139   136 131
Other, net 80 69   171 196
TOTAL COSTS AND EXPENSES 6,213 5,366   370 393
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES 114 (40)   132 119
Income tax (expense) (23) (13)   (40) (38)
Equity in income of unconsolidated subsidiaries and affiliates 8 12   11 6
Results from intersegment investments 103 87   - -
NET INCOME (LOSS) 202 46   103 87

Notes:
(*)     2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the updated accounting standards for revenue recognition (ASC 606) and retirement benefits accounting (ASU 2017-07).

CNH INDUSTRIAL N.V.
Supplemental Balance Sheets
As of March 31, 2018 and December 31, 2017
(Unaudited)

(U.S. GAAP)

  Industrial Activities   Financial Services  
($ million) March 31, 2018 December 31, 2017(*)   March 31, 2018 December 31, 2017(*)
ASSETS          
Cash and cash equivalents 3,119 4,901   496 529
Restricted cash 1 -   772 770
Trade receivables 536 490   44 53
Financing receivables 1,405 1,718   20,212 20,699
Inventories, net 7,200 6,236   221 216
Property, plant and equipment, net 6,768 6,829   2 2
Investments in unconsolidated subsidiaries and affiliates 3,212 3,173   223 205
Equipment under operating leases 37 35   1,744 1,810
Goodwill 2,314 2,316   155 156
Other intangible assets, net 770 779   13 13
Deferred tax assets 877 869   197 198
Derivative assets 97 73   15 14
Other assets 1,877 1,742   311 358
TOTAL ASSETS 28,213 29,161   24,405 25,023
LIABILITIES AND EQUITY          
Debt 6,349 7,443   20,430 21,075
Trade payables 6,194 5,936   163 193
Deferred tax liabilities 96 94   196 215
Pension, postretirement and other postemployment benefits 2,288 2,280   27 20
Derivative liabilities 95 88   21 20
Other liabilities 9,071 9,063   699 686
Total Liabilities 24,093 24,904   21,536 22,209
Redeemable noncontrolling interest 26 25   - -
Equity 4,094 4,232   2,869 2,814
TOTAL LIABILITIES AND EQUITY 28,213 29,161   24,405 25,023

Notes:
(*)     2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the updated accounting standard for revenue recognition (ASC 606).

CNH INDUSTRIAL N.V.
Supplemental Statements of Cash Flows
For The Three Months Ended March 31, 2018 and 2017
(Unaudited)

(U.S. GAAP)

  Industrial Activities   Financial Services
($ million) Three Months Ended March 31,   Three Months Ended March 31,
Operating activities: 2018 2017(*)   2018 2017(*)
Net income (loss) 202 46   103 87
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:          
Depreciation and amortization expense, net of assets under operating leases and assets sold under buy-back commitments 184 176   1 1
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments 102 74   66 65
Loss from disposal of assets - -   - -
Undistributed income (loss) of unconsolidated subsidiaries (30) 31   (11) (6)
Other non-cash items 30 14   20 24
Changes in operating assets and liabilities:          
Provisions (119) (67)   (7) (6)
Deferred income taxes (7) (14)   (17) (10)
Trade and financing receivables related to sales, net (41) 72   234 131
Inventories, net (848) (691)   93 127
Trade payables 167 254   (28) (60)
Other assets and liabilities (194) (154)   78 24
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (554) (259)   532 377
Investing activities:          
Additions to retail receivables - -   (959) (846)
Collections of retail receivables - -   1,089 1,050
Proceeds from the sale of assets, net of assets sold under operating leases and assets sold under buy-back commitments 1 2   - -
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments (61) (74)   (1) -
Expenditures for assets under operating leases and assets sold under buy-back commitments (196) (229)   (109) (164)
Other 109 (496)   (156) 424
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (147) (797)   (136) 464
Financing activities:          
Net increase (decrease) in debt (1,057) (104)   (371) (843)
Dividends paid (1) (1)   (52) (104)
Other (90) -   - -
NET CASH USED IN FINANCING ACTIVITIES (1,148) (105)   (423) (947)
Effect of foreign exchange rate changes on cash and cash equivalents 68 69   (4) 11
DECREASE IN CASH AND CASH EQUIVALENTS (1,781) (1,092)   (31) (95)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 4,901 4,649   1,299 1,205
CASH AND CASH EQUIVALENTS, END OF PERIOD 3,120 3,557   1,268 1,110

Notes:
(*)     2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the updated accounting standards for revenue recognition (ASC 606) and cash flow presentation (ASU 2016-18).

CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)

  CNH INDUSTRIAL
Reconciliation of Net Income (loss) to Adjusted EBIT and Adjusted EBITDA by segment under U.S. GAAP
($ million)
     
     
            Three Months ended March 31, 2018    
    Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Unallocated items, eliminations and other Total Industrial Activities Financial Services Total    
  Net income (loss)(1) - - - - - 99 103 202    
  Add back:                    
  Interest expenses of Industrial Activities, net of interest income and eliminations - - - - - 93 - 93    
  Foreign exchange (gains) losses, net - - - - - 25 - 25    
  Finance and non-service component of Pension and other post-employment benefit costs - - - - - 18 - 18    
  Income tax expense - - - - - 23 40 63    
  Adjustments:                    
  Restructuring expenses - - 3 - - 3 - 3    
  Adjusted EBIT 186 0 49 95 (69) 261 143 404    
Depreciation and Amortization 79 16 55 34 - 184 1 185    
Depreciation of assets under operating leases and assets sold with buy-back commitments - - 102 - - 102 66 168    
Adjusted EBITDA 265 16 206 129 (69) 547 210 757    
       
  Three Months ended March 31, 2017    
  Agricultural Equipment Construction Equipment Commercial Vehicles Powertrain Unallocated items, eliminations and other Total Industrial Activities Financial Services Total    
Net income (loss)(1) - - - - - (41) 87 46    
Add back:                    
Interest expenses of Industrial Activities, net of interest income and eliminations - - - - - 103 - 103    
Foreign exchange (gains) losses, net - - - - - 32 - 32    
Finance and non-service component of Pension and other post-employment benefit costs - - - - - 23 - 23    
Income tax expense - - - - - 13 38 51    
Adjustments:                    
Restructuring expenses 5 3 3 - - 11 1 12    
Adjusted EBIT 115 (31) 17 74 (34) 141 126 267    
Depreciation and Amortization 79 16 51 30 - 176 1 177    
Depreciation of assets under operating leases and assets sold with buy-back commitments - - 74 - - 74 65 139    
Adjusted EBITDA 194 (15) 142 104 (34) 391 192 583    
For Industrial Activities, net income (loss) net of "Results from intersegment investments".    

CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)

CNH INDUSTRIAL
Reconciliation of Total Debt to Net debt under U.S. GAAP  ($ million)
       
       
    Consolidated   Industrial Activities   Financial Activities  
    March 31,
 2018
December 31, 2017   March 31,
2018
December 31, 2017   March 31,
 2018
December 31, 2017    
  Third party debt 24,650 25,895   5,537 6,461   19,113 19,434    
  Intersegment notes payable - -   812 982   1,317 1,641    
  Total Debt(1) 24,650 25,895   6,349 7,443   20,430 21,075    
  Less:
Cash and cash equivalents
3,615 5,430   3,119 4,901   496 529    
  Restricted cash 773 770   1 -   772 770    
  Intersegment notes receivable - -   1,317 1,641   812 982    
  Derivatives hedging debt (11) (7)   (11) (7)   - -    
  Net debt (cash)(2) 20,273 19,702   1,923 908   18,350 18,794    
Total Debt of Industrial Activities includes Intersegment notes payable to Financial Services of $812 million and $982 million as of March 31, 2018 and December 31, 2017, respectively. Total Debt of Financial Services includes Intersegment notes payable to Industrial Activities of $1,317 million and $1,641 million as of March 31, 2018 and December 31, 2017, respectively. The net intersegment receivable/payable balance owed by Financial Services to Industrial Activities was $505 million and $659 million as of March 31, 2018 and December 31, 2017, respectively.    


CNH INDUSTRIAL
Reconciliation of Cash and cash equivalents to Available liquidity under U.S. GAAP 
($ million)
 
 
       

March 31, 2018
 

December 31, 2017
 
  Cash and cash equivalents   3,615 5,430  
  Restricted cash   773 770  
  Undrawn committed facilities   3,254 3,180  
  Available liquidity   7,642 9,380  
   


CNH INDUSTRIAL
Change in Net industrial debt under U.S. GAAP  ($ million)
   
   
      Three Months ended March 31,  
      2018   2017  
  Net industrial (debt)/cash at beginning of period   (908)   (1,609)  
  Adjusted EBITDA of Industrial Activities   547   391  
  Cash interest and taxes   (162)   (180)  
  Changes in provisions and similar(1)   (134)   (82)  
  Change in working capital   (1,005)   (622)  
  Operating cash flow   (754)   (493)  
  Investments in property, plant and equipment, and intangible assets(2)   (61)   (74)  
  Other changes   (10)   35  
  Net industrial cash flow   (825)   (532)  
  Capital increases and dividends(3)   (91)   (1)  
  Currency translation differences and other   (99)   (28)  
  Change in Net industrial debt   (1,015)   (561)  
  Net industrial (debt)/cash at end of period   (1,923)   (2,170)  
  Including other cash flow items related to operating lease and buy-back activities. Excluding assets sold under buy-back commitments and assets under operating leases. Including share buy-back transactions.  

CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)

CNH INDUSTRIAL
Reconciliation of Adjusted net income and Adjusted income tax (expense) to Net income (loss) and Income tax (expense) and calculation of Adjusted diluted EPS and Adjusted ETR under U.S.GAAP
($ million, except per share data)
   
   
      Three Months ended March 31,  
      2018   2017  
  Net income (loss)   202   46  
  Adjustments impacting Income (loss) before income tax (expense) and equity in income of unconsolidated subsidiaries and affiliates (a)   3   12  
  Adjustments impacting Income tax (expense) (b)   (1)   (3)  
  Adjusted net income   204   55  
  Adjusted net income attributable to CNH Industrial N.V.   198   52  
  Weighted average shares outstanding  diluted (million)   1,368   1,366  
  Adjusted diluted EPS ($)   0.14   0.04  
     
  Income (loss) before income tax (expense) and equity in income of unconsolidated subsidiaries and affiliates   246   79  
  Adjustments impacting Income (loss) before income tax (expense) and equity in income of unconsolidated subsidiaries and affiliates (a)   3   12  
  Adjusted income (loss) before income tax (expense) and equity in income of unconsolidated subsidiaries and affiliates (A)   249   91  
     
  Income tax (expense)   (63)   (51)  
  Adjustments impacting Income tax (expense) (b)   (1)   (3)  
  Adjusted income tax (expense) (B)   (64)   (54)  
     
  Adjusted Effective Tax Rate (Adjusted ETR) (C=B/A)   26%   59%  
     
  Adjustments impacting Income (loss) before income tax (expense) and equity in income of unconsolidated subsidiaries and affiliates  
  Restructuring expenses   3   12  
  Total   3   12  
     
  Adjustments impacting Income tax (expense)  
  Tax effect of adjustments impacting Income (loss) before income tax (expense) and equity in income of unconsolidated subsidiaries and affiliates   (1)   (3)  
  Total   (1)   (3)  
         

CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)

  CNH INDUSTRIAL
Revenues by Segment under EU-IFRS  ($ million)
     
 
    Three Months ended March 31,  
    2018 2017   % change  
  Agricultural Equipment 2,579 2,240   15.1  
  Construction Equipment 682 502   35.9  
  Commercial Vehicles 2,495 2,125   17.4  
  Powertrain 1,186 1,001   18.5  
  Eliminations and other (642) (578)   -  
  Total Industrial Activities 6,300 5,290   19.1  
  Financial Services 502 512   -2.0  
  Eliminations and other (50) (38)   -  
  Total 6,752 5,764   17.1  
   


  CNH INDUSTRIAL
Adjusted EBITDA(1)(2) by Segment under EU-IFRS  ($ million)
       
   
      Three Months ended March 31,    
    2018 2017 $ change 2018 adjusted EBITDA margin 2017 adjusted EBITDA margin    
  Agricultural Equipment 306 226 80 11.9% 10.1%    
  Construction Equipment 20 (10) 30 2.9% (2.0)%    
  Commercial Vehicles 238 165 73 9.5% 7.8%    
  Powertrain 135 109 26 11.4% 10.9%    
  Unallocated items, eliminations and other (70) (34) (36) - -    
  Total Industrial Activities 629 456 173 10.0% 8.6%    
  Financial Services 211 192 19 42.0% 37.5%    
  Eliminations and other - - - - -    
  Total 840 648 192 12.4% 11.2%    
Concurrently with the changes following the adoption of the new accounting standards, the Company reviewed the metrics on which the operating segments will be assessed. Starting in 2018, the Chief Operating Decision Maker began to assess segment performance and make decisions about resource allocation based upon Adjusted EBIT and Adjusted EBITDA. This item is a non-GAAP financial measure. Refer to the "About this Press Release" and "Non-GAAP Financial Information" sections of this press release for information regarding non-GAAP financial measures.    


  CNH INDUSTRIAL
Adjusted EBIT(1)(2) by Segment under EU-IFRS  ($ million)
       
   
      Three Months ended March 31,    
    2018 2017 $ change 2018 adjusted EBIT margin 2017 adjusted
EBIT margin
   
  Agricultural Equipment 167 92 75 6.5% 4.1%    
  Construction Equipment (8) (40) 32 (1.2)% (8.0)%    
  Commercial Vehicles 44 6 38 1.8% 0.3%    
  Powertrain 90 69 21 7.6% 6.9%    
  Unallocated items, eliminations and other (71) (34) (37) - -    
  Total Industrial Activities 222 93 129 3.5% 1.8%    
  Financial Services 143 126 17 28.5% 24.6%    
  Eliminations and other - - - - -    
  Total 365 219 146 5.4% 3.8%    
Concurrently with the changes following the adoption of the new accounting standards, the Company reviewed the metrics on which the operating segments will be assessed. Starting in 2018, the Chief Operating Decision Maker began to assess segment performance and make decisions about resource allocation based upon Adjusted EBIT and Adjusted EBITDA. This item is a non-GAAP financial measure. Refer to the "About this Press Release" and "Non-GAAP Financial Information" sections of this press release for information regarding non-GAAP financial measures.    

CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)

CNH INDUSTRIAL
Key Balance Sheet data under EU-IFRS   ($ million)
   
   
      March 31, 2018 December 31, 2017  
  Total Assets   49,809 50,798  
  Total Equity   6,664 6,684  
  Equity attributable to CNH Industrial N.V.   6,646 6,671  
  Net debt   (20,384) (19,835)  
  Of which Net industrial debt(1)   (1,975) (1,023)  
  This item is a non-GAAP financial measure. Refer to the "About this Press Release" and "Non-GAAP Financial Information" sections of this press release for information regarding non-GAAP financial measures.  


CNH INDUSTRIAL
Net income reconciliation U.S. GAAP to EU-IFRS  ($ million)
   
   
      Three Months ended March 31,  
      2018 2017  
  Net income (loss) in accordance with U.S. GAAP   202 46  
  Adjustments to conform with EU-IFRS:        
  Development costs   (26) (42)  
  Other adjustments   3 10  
  Tax impact on adjustments   9 10  
  Deferred tax assets and tax contingencies recognition   (4) (4)  
  Total adjustments   (18) (26)  
  Profit (loss) in accordance with EU-IFRS   184 20  
     

CNH INDUSTRIAL N.V.
Other Supplemental Financial Information
(Unaudited)

CNH INDUSTRIAL
Total Equity reconciliation U.S. GAAP to EU-IFRS  ($ million)
   
     
    March 31, 2018 December 31, 2017  
  Total Equity under U.S. GAAP 4,094 4,232  
  Adjustments to conform with EU-IFRS:      
  Development costs 2,498 2,477  
  Other adjustments (39) (112)  
  Tax impact on adjustments (627) (645)  
  Deferred tax assets and tax contingencies recognition 738 732  
  Total adjustments 2,570 2,452  
  Total Equity under EU-IFRS 6,664 6,684  
   
 

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:

  Three Months Ended
March 31, 2018
  At December 31, 2017   Three Months Ended
March 31, 2017
 
  Average At March 31       Average At March 31
Euro 0.814 0.812   0.834   0.939 0.935
Pound sterling 0.719 0.710   0.740   0.808 0.800
Swiss franc 0.948 0.956   0.976   1.004 1.000
Polish zloty 3.400 3.417   3.483   4.058 3.953
Brazilian real 3.245 3.323   3.313   3.143 3.162
Canadian dollar 1.264 1.290   1.254   1.324 1.334
Argentine peso 19.693 20.110   18.840   15.670 15.410
Turkish lira 3.815 3.975   3.791   3.698 3.638

CNH INDUSTRIAL N.V.
Condensed Consolidated Income Statement(*)
For The Three Months Ended March 31, 2018 and 2017
(Unaudited)

(EU-IFRS)

Three Months Ended March 31,
($ million) 2018 2017(**)
Net revenues 6,752 5,764
Cost of sales 5,537 4,793
Selling, general and administrative costs 570 516
Research and development costs 262 240
Result from investments: 21 19
Share of the profit/(loss) of investees accounted for using the equity method 21 19
Other income/(expenses) from investments - -
Gains/(losses) on the disposal of investments - -
Restructuring costs 3 13
Other income/(expenses) (39) (15)
Financial income/(expenses) (120) (141)
PROFIT/(LOSS) BEFORE TAXES 242 65
Income tax (expense) (58) (45)
PROFIT/(LOSS) FROM CONTINUING OPERATIONS 184 20
PROFIT/(LOSS) FOR THE PERIOD 184 20
     
PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO:    
Owners of the parent 178 17
Non-controlling interests 6 3
     
     
     
(in $)    
BASIC EARNINGS/(LOSS) PER COMMON SHARE 0.13 0.01
DILUTED EARNINGS/(LOSS) PER COMMON SHARE 0.13 0.01

Notes:
(*)      Concurrently with the changes following the adoption of the new accounting standards, CNH Industrial reviewed the metrics on which the operating segments will be assessed. Starting in 2018, the Chief Operating Decision Maker began to assess segment performance and make decision about resource allocation based upon Adjusted EBIT and Adjusted EBITDA. As a consequence, CNH Industrial no longer reports Trading Profit and Operating Profit on the face of the Income Statement.
(**)   2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the updated accounting standard for revenue recognition (IFRS 15).

CNH INDUSTRIAL N.V.
Condensed Consolidated Statement of Financial Position
As of March 31, 2018, December 31, 2017 and January 1, 2017
(Unaudited)

(EU-IFRS)

($ million)   March 31, 2018 December 31, 2017(*) January 1, 2017(*)
ASSETS        
Intangible assets   5,655 5,644 5,504
Property, plant and equipment   6,852 6,830 6,278
Investments and other financial assets:   624 631 554
Investments accounted for using the equity method   589 590 505
Other investments and financial assets   35 41 49
Leased assets   1,781 1,845 1,907
Defined benefit plan assets   27 28 5
Deferred tax assets   1,022 982 997
Total Non-current assets   15,961 15,960 15,245
Inventories   7,440 6,453 5,729
Trade receivables   539 496 623
Receivables from financing activities   19,488 19,795 18,614
Current tax receivables   306 303 430
Other current assets   1,570 1,501 1,234
Current financial assets:   104 77 95
Current securities   - - -
Other financial assets   104 77 95
Cash and cash equivalents   4,388 6,200 5,854
Total Current assets   33,835 34,825 32,579
Assets held for sale   13 13 22
TOTAL ASSETS   49,809 50,798 47,846
EQUITY AND LIABILITIES        
Issued capital and reserves attributable to owners of the parent   6,646 6,671 6,497
Non-controlling interests   18 13 10
Total Equity   6,664 6,684 6,507
Provisions:   5,799 5,977 5,351
Employee benefits   2,461 2,587 2,532
Other provisions   3,338 3,390 2,819
Debt:   24,768 26,014 25,434
Asset-backed financing   11,467 12,028 11,784
Other debt   13,301 13,986 13,650
Other financial liabilities   108 98 249
Trade payables   6,299 6,060 5,185
Current tax payables   76 86 229
Deferred tax liabilities   138 138 186
Other current liabilities   5,957 5,741 4,705
Liabilities held for sale   - - -
Total Liabilities   43,145 44,114 41,339
TOTAL EQUITY AND LIABILITIES   49,809 50,798 47,846

Notes:
(*)     2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the updated accounting standard for revenue recognition (IFRS 15).

CNH INDUSTRIAL N.V.
Condensed Consolidated Statement of Cash Flows
For The Three Months Ended March 31, 2018 and 2017
(Unaudited)

(EU-IFRS)

Three Months Ended March 31,
($ million) 2018 2017(*)
A) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 6,200 5,854
B) CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES:    
Profit/(loss) for the period 184 20
Amortization and depreciation (net of vehicles sold under buy-back commitments and operating leases) 307 291
(Gains)/losses on disposal of non-current assets (net of vehicles sold under buy-back commitments) - -
Other non-cash items 3 5
Dividends received 29 25
Change in provisions (261) (168)
Change in deferred income taxes (29) (17)
Change in items due to buy-back commitments(1) 33 (17)
Change in operating lease items(2) 51 23
Change in working capital (821) (482)
TOTAL (504) (320)
C) CASH FLOWS FROM/(USED IN) INVESTMENT ACTIVITIES:    
Investments in:    
Property, plant and equipment and intangible assets (net of vehicles sold under buy-back commitments and operating leases) (159) (148)
Consolidated subsidiaries and other equity investments - (5)
Proceeds from the sale of non-current assets (net of vehicles sold under buy-back commitments) 6 2
Net change in receivables from financing activities 333 372
Change in current securities - -
Other changes (31) (112)
TOTAL 149 109
D) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES:    
Net change in debt and other financial assets/liabilities (1,430) (1,054)
Capital increase - -
Dividends paid (1) (1)
(Purchase)/sale of treasury shares (90) -
(Purchase)/sale of ownership interests in subsidiaries - -
TOTAL (1,521) (1,055)
Translation exchange differences 64 79
E) TOTAL CHANGE IN CASH AND CASH EQUIVALENTS (1,812) (1,187)
F) CASH AND CASH EQUIVALENTS AT END OF PERIOD 4,388 4,667
  1. 2017 figures have been recast following the retrospective adoption, on January 1, 2018, of the updated accounting standard for revenue recognition (IFRS 15).
  2. Cash generated by the sale of vehicles under buy-back commitments, net of the amounts included in Profit/(loss), is recognized under operating activities in a single line item, which includes changes in working capital, capital expenditure, depreciation and impairment losses. The item also includes gains and losses arising from the sale of vehicles subject to buy-back commitments before the end of the agreement and without repossession of the vehicle.
  3. Cash from operating lease is recognized under operating activities in a single line item which includes capital expenditure, depreciation, write-down and changes in inventory.

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