Global Product Development and Innovation An overview of CNH Industrial Product Development process Melbourne APAC 14 March 2015 Contains confidential proprietary and trade secrets information of CNH Industrial. Any use of this work without express written consent is strictly prohibited. FIAT RELATED BRANDS/BUSINESSES CORPORATE OVERVIEW CORPORATE OVERVIEW 2 March, 2015 Global Product Development CNH INDUSTRIAL: Key Facts CORPORATE OVERVIEW AS AT 31 DECEMBER, 2013: One group Present in 190 countries Operating across five segments 12 commercial brands ~€ 25.8/$ 34.2 bln. in revenues ~6,000 dealers ~71,000 employees 62 plants 48 R&D centres (~16% of total employees) ~€ 934/$ 1,240 mln. investment in R&D CNH Industrial Capital LLC – captive finance company 2 March, 2015 FRO M 1 O CT O BER 2013 All 100% CNH-I owned subsidiaries and listed on the NYSE & the MTA (Milan Stock Exchange). GLO BAL T O P #3 CAPIT AL AN D IN DUST RIALGO O DS CO MPAN Y. GLO BAL T O P # 2 IN AGRICULT URE EQ UIPMEN T . GLO BAL T O P # 2 IN CO MERCIAL VEH ICLES. GLO BAL T O P T IER IN CO N ST RUCT IO N EQ UIPMEN T . LEADIN G PO W ERT RAIN T ECH N O LO GY. Global Product Development 3 CNH INDUSTRIAL: Broad Industrial Product & Service Coverage CORPORATE OVERVIEW Light to Heavy Commercial Vehicles (incl. mining) Financial Services Buses Powertrain design, development and manufacturing Defence Vehicles Emergency Services Vehicles Construction Equipment Alternative Fuel Powertrains for AE, CE & CV Agricultural Equipment Retail Non-OE Commercial Vehicle Parts 2 March, 2015 Global Product Development Wholesale & Retail OE Parts 4 CNH INDUSTRIAL: Our Products CORPORATE OVERVIEW Trucks Buses Firefighting and Emergency Equipment Crawler Excavators Defence Wheel Loaders 2 March, 2015 Combines Global Product Development Tractors Engines and Transmissions 5 CNH INDUSTRIAL: Product Sustainability CORPORATE OVERVIEW IVECO: CASE IH and New Holland: Industry leading fuel efficiency, reliability and hybrid bus technology. Only producer to offer bio-diesel and natural gas engines on its entire range of vehicles. Global leadership in alternative fuel solutions. Emphasis on innovative, fuel efficient product offering geared towards efficiency and productivity (local focus on bio-diesel). Compliance with Euro VI standard prior to deadline courtesy of Hi-eSCR technology. >43% of natural gas-powered vehicles sold worldwide. >75% of agricultural equipment already compliant with Tier4A/Stage IIIB standards. FPT Industrial: Global leadership in fuel efficiency and emissions reductions. 2 March, 2015 Global Product Development 6 IVECO IN AUSTRALIA AUSTRALIAN COMMERCIAL VEHICLE PRODUCT RANGE IMPORTED DAILY (Cab and Van) LIGHT DUTY EUROCARGO MEDIUM DUTY STRALIS TRAKKER HEAVY DUTY AUSTRALIAN PRODUCED OR ASSEMBLED ACCO STRALIS ~85% 2 March, 2015 ~55% POWERSTAR ~60% Global Product Development POWERSTAR Road Train ~65% BUS CHASSIS ~65% 7 GPD Global Product Development process GPD is CNH Industrial global process aimed to regulate the Product Development projects GPD is utilized by all Brands of CNH Industrial, for each individual Product Development project, irrespective of its nature, investment, location or duration The GPD process consists of a set of development phases, each one acccesed throught a Milestone gate, where specific decisions are required There are SEVEN milestones in the GPD process, and SIX development phases. 2 March, 2015 Global Product Development 8 GPD Phases and Milestones Each Product Development project is originated by an EXTERNAL INPUT: Regulation, Product Demand, Safety, Productivity, etc. PROGRAM PLANNING: Project definition, investment and timing estimation DEVELOP CONCEPT: Design options evaluation, refine project KPIs. Suppliers involvement. PROVE FEASIBILITY: guarantee all functionalities of the product fully respond to the project requirements. PROGRAM APPROVAL: Allocation of majority of investment, project execution commences 2 March, 2015 Global Product Development 9 GPD Phases and Milestones OPTIMIZATION and VERIFICATION: Prototypes manufactured and tested, results matched with KPIs OK TO BUILD: Validation fully completed, approval to manufacture the first production units IMPLEMENTATION: Further quality monitoring on manufacturing process OK TO SHIP; all projects KPIs fully met, product is dispatched to Customers 2 March, 2015 Global Product Development 10 GPD – The role of Platform Projects Management and Coordination MANUFACTURING ENGINEERING QUALITY PRODUCT PLANNING PLATFORM SALES & MARKETING SUPPLIERS PURCHASING AFTER SALES 2 March, 2015 Global Product Development 11 Products developed with GPD process CNH Industrial CASE 600 Quadtrac 2 March, 2015 Global Product Development 12 Products developed with GPD process CNH Industrial MAGIRUS Super Dragon X8 2 March, 2015 Global Product Development 13 Products developed with GPD process CNH Industrial New ACCO 2 March, 2015 Global Product Development 14 Products developed with GPD process CNH Industrial POWERSTAR 7800 Road Train 2 March, 2015 Global Product Development 15 THANK YOU 2 March, 2015 Global Product Development 16