SIGNATURES |
1. | Fiat S.p.A. Agricultural and Construction Equipment presentation dated January 30, 2006. |
CNH Global N.V. |
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By: | /s/ Michel Lecomte | |||
Michel Lecomte | ||||
January 30, 2006 | Chief Financial Officer | |||
FY '04 581 FY '05 869 AG CE Capital Q4 '04 1.9 0.9 0.3 Q4 '05 1.8 1.1 0.2 Agricultural and Construction Equipment Working to Close the Gap data data2 Q4 '04 -4 Q4 '05 190 AG CE Capital FY '04 7999 3546 874 FY '05 7851 3971 884 12.7 12.4 7.8 8.0 4.0 3.5 0.9 0.9 3.1 3.1 1.9 1.8 1.0 0.9 0.3 0.3 Net Revenues ($bn) Trading Profit ($mn) FY '05 Revenues up 2.3%; lower AG more than offset by strong CE Stable 2005 AG industry sales in NA, weak LA, up in WE for combines, down for tractors CNH tractor sales down in most markets; combine sales up in most countries, but LA Overall CE demand up 11%, all key markets up Financial Services continued to perform well Q4 '05 Revenues unchanged but diverging trends in reference markets: ex currency AG sales down 2%, CE sales up 8%, NA stronger than Europe Reorganization into 4 distinct global brand structures with full P&L accountability operational in Q4 AG CE Capital |
Higher volumes in CE, favorable pricing in both segments, manufacturing efficiencies and greater profitability of financial services Higher raw material and utilities costs SG&A up for higher marketing and supply chain initiatives R&D spend for new Tier 3 compliant products Agricultural and Construction Equipment - Pricing Recovery Driving Growth Q4 '04 Vol Price Prod Cost Purchasing R&D/SG&A Currency Other Q4 '05 -4 -4 0 0 0 0 0 0 190 0 0 23 117 151 142 142 150 0 23 94 45 11 9 8 40 Trading Profit - Q4 '05 $mn FY '04 Vol Price Prod Cost Purchasing R&D SG&A Currency Other FY '05 581 0 0 0 0 0 0 869 484 484 962 870 847 808 808 808 97 478 123 215 23 39 11 50 Trading Profit - FY '05 $mn 581 (97) 478 (215) (23) 50 869 (39) 123 (4) 27 94 45 (11) (9) 40 190 8 11 |
Agricultural and Construction Equipment The Next Steps - '06 Outlook Market share improvements on relatively flat worldwide markets New brand organization expected to gain traction in '06 Slate of new products with Tier 3 compliant engines in '06 Market drivers continuing to be stronger in CE than AG; US stronger than Europe; weak Latin America, strong Rest of World Continuing pricing improvements in both AG & CE more than offsetting material costs increases Manufacturing/purchasing efficiencies Stable profitability in financial services operations Cash flow generation and further debt reduction 2-5% increase in net revenues FY '06 trading margin at 7.0%-7.5% from 6.8% in '05 Trading Profit - FY '06 Estimate $mn FY '05 Volume Mix/Price Prod cost Purchasing SG&A/R&D Other FY '06 869 0 0 0 0 0 0 990 869 935 1112 1164 1126 990 66 177 52 29 67 136 869 66 177 29 (67) (136) 52 990 |