Exhibit 99.1

 

		2021 SECOND QUARTER RESULTS		PRESS RELEASE

2021 SECOND QUARTER RESULTS

 

 

CNH Industrial reports strong second quarter performance. Consolidated revenues of $8.9 billion (up 60% compared to Q2 2020), net income of $699 million, adjusted diluted EPS of $0.42, and adjusted EBIT of Industrial Activities of $699 million (up $757 million). $1.0 billion free cash flow of Industrial Activities.

Financial results presented under U.S. GAAP

“I am extremely proud of the outstanding execution of our CNH Industrial team in the second quarter, especially for their commitment to delivering for our customers and dealers around the world. Despite ongoing supply chain challenges and inflationary pressures, the continued strength of our end markets in conjunction with aggressive pricing activity, margin expansion initiatives, and solid teamwork propelled us to record second quarter earnings. Our industry is clearly in a cyclical upturn and the sound fundamental performance of our businesses and operations is enabling us to capture much of the benefit. This robust environment contributed to growth across AG, CE, and C&SV order books, which also reflected the excellent Q2 performance of each of these businesses. With the acquisition of Raven Industries, the largest in our company’s history, we are adding significantly to our precision agriculture capabilities and establishing the foundation for building this into a sustainable competitive advantage. We also began the first phase of our organization redesign, directed both at eliminating bureaucratic obstacles to customer centricity and to positioning each business in preparation for the spin. Both SpinCo and RemainCo remain laser focused on delivering for our customers throughout these activities, and with market demand and customer sentiment rising, our production facilities moving mountains to satisfy customer needs, and a comprehensive plan being nimbly executed by our dedicated team, CNH Industrial is poised for a noteworthy second half and an even brighter future.”

Scott Wine, Chief Executive Officer

 

 

2021 Second Quarter Results

(all amounts $ million, unless otherwise stated – comparison vs Q2 2020)

 

US GAAP

NON GAAP(1)

Consolidated revenues

8,911

+60

%

+51%c.c.(*)

Adjusted EBIT of Industrial Activities

699

+1,305

%

of which Net sales of Industrial Activities

8,490

+65

%

+55%c.c.

Adjusted EBIT Margin of Industrial Activities

8.2

%

+930

bps

Net income

699

+338

Adjusted net income

583

+668

Diluted EPS $

0.51

+0.25

Adjusted diluted EPS $

0.42

+0.49

Cash flow from operating activities

999

-68

Free cash flow of Industrial Activities

1,008

+911

Cash and cash equivalents

7,820

+761

(**)

Available liquidity

14,423

+537

(**)

(*) c.c. means at constant currency                (**) comparison vs March 31, 2021

 

Refer to section “Notes” at page 4 for an explanation of the items referenced on this page and to page 12 onwards for the reconciliations (*) Net sales reflecting the exchange rate of 1.20 EUR/USD		1

		PRESS RELEASE

 

AGRICULTURE

In North America, tractor demand was up 3% for tractors under 140 HP, and up 49% for tractors over 140 HP; combines were up 10%. In Europe, tractor and combine demand were up 31% and 13%, respectively. South America tractor and combine demand were up 38%. In Rest of World tractor and combine demand increased 38% and 12%, respectively.   Net sales were up 56%, mainly due to higher industry demand, better mix in all regions, and favorable price realization.   Adjusted EBIT was $582 million, with Adjusted EBIT margin at 14.7%. The $379 million increase was driven by higher volume, favorable mix and positive price realization, partially offset by higher raw material and freight costs, higher SG&A and R&D spend from the low levels of previous year, as well as higher variable compensation.

Q2 2021

Q2 2020

Change

Change at c.c.(*)

Net sales ($ million)

3,970

2,541

+56.2%

+49.2%

Adjusted EBIT ($ million)

582

203

+379

Adjusted EBIT margin

14.7%

8.0%

+670

bps

 

CONSTRUCTION

Global demand for construction equipment increased in both Heavy and Light sub-segments, with Heavy up 6% and Light up 21%. Demand increased 42% in North America, 36% in Europe and 102% in South America, but decreased 4% in Rest of World.   Net sales were up 92%, as a result of higher volumes driven by industry demand, channel destocking actions in 2020, and better price realization.   Adjusted EBIT increased $111 million due to favorable volume and mix, positive price realization and favorable quality performance, partially offset by higher material and freight costs. Adjusted EBIT margin at 3.0%.

Q2 2021

Q2 2020

Change

Change at c.c.(*)

Net sales ($ million)

808

420

+92.4%

+86.2%

Adjusted EBIT ($ million)

24

(87

)

+111

Adjusted EBIT margin

3.0%

(20.7

)%

+2,370

bps

 

COMMERCIAL AND SPECIALTY VEHICLES

European truck market was up 45% year over year, with light-duty trucks (“LCV”) up 40%, while medium and heavy trucks (“M&H”) were up 61%. South American truck market was up 73% in LCV and up 80% in M&H. Order book is strong across all regions. Bus registrations increased 21% in Europe and 91% in South America.   Net sales were up 85%, primarily driven by higher truck volumes.   Adjusted EBIT was $100 million, with Adjusted EBIT margin at 3.1%. The $256 million increase was driven by favorable volume and mix, and positive price realization, partially offset by higher material costs, higher SG&A and R&D spend from low levels of prior year, as well as higher variable compensation.

Q2 2021

Q2 2020

Change

Change at c.c.(*)

Net sales ($ million)

3,220

1,739

+85.2%

+71.4%

Adjusted EBIT ($ million)

100

(156

)

+256

Adjusted EBIT margin

3.1%

(9.0

)%

+1,210

bps

 

POWERTRAIN

Net sales were up 69% due to higher sales volume with both captive and external customers. Sales to external customers accounted for 42% of total net sales (63% in Q2 2020).   Adjusted EBIT increased $42 million to $74 million, with Adjusted EBIT margin at 5.7%. Favorable volume and mix, and positive price realization more than offset higher freight costs and higher spending for regulatory and new programs.

Q2 2021

Q2 2020

Change

Change at c.c.(*)

Net sales ($ million)

1,287

763

+68.7%

+55.0%

Adjusted EBIT ($ million)

74

32

+42

Adjusted EBIT margin

5.7%

4.2%

+150

bps

 

FINANCIAL SERVICES																								Revenues were flat due to lower average portfolio in North America and lower loan yields, offset by the positive impact of currency translation. Retail loan and leases originations were up 21% on the back of higher industrial sales.   Net income increased $46 million to $99 million, primarily due to lower risk costs and improved pricing on used equipment sales.   The managed portfolio (including unconsolidated joint ventures) was $27.0 billion at the end of the quarter, up $2.4 billion compared to June 30, 2020 (up $1.2 billion on a constant currency basis). The receivable balance greater than 30 days past due as a percentage of receivables was 2.0% (2.8% as of June 30, 2020).
				Q2 2021				Q2 2020				Change				Change at c.c.(*)
		Revenues ($ million)			439				441				-0.5%				-4.1%
		Net income ($ million)			99				53				+46
		Equity at quarter-end ($ million)			3,030				2,693				+337
		Retail loan originations ($ million)			2,878				2,372				+21%

 

Refer to section “Notes” at page 4 for an explanation of the items referenced on this page and to page 12 onwards for the reconciliations		2

		PRESS RELEASE

 

RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2021

 

 

Consolidated revenues of $16.4 billion (up 48% year on year), net income of $1,124 million, with adjusted diluted EPS of $0.74, adjusted EBIT of Industrial Activities of $1,244 million, and $0.6 billion free cash flow of Industrial Activities, as a result of the strong operating performance.

 

 

Results for the Six Months Ended June 30, 2021

(all amounts $ million, unless otherwise stated – comparison vs six months ended June 30, 2020)

 

US GAAP

NON GAAP(1)

Consolidated revenues

16,384

+48

%

+42%c.c.

(*)

Adjusted EBIT of Industrial Activities

1,244

+704

%

of which Net sales of Industrial Activities

15,533

+53

%

+46%c.c.

Adjusted EBIT Margin of Industrial Activities

8.0

%

+1,000

bps

Net income

1,124

+817

Adjusted net income

1,037

+1,188

Diluted EPS $

0.81

+0.60

Adjusted diluted EPS $

0.74

+0.87

Cash flows from operating activities

1,371

+836

Free cash flow of Industrial Activities

637

+2,063

Cash and cash equivalents

7,820

-965

(**)

Available liquidity

14,423

-1,448

(**)

(*) c.c. means at constant currency                (**) comparison vs December 31, 2020

 

 

 

 

Refer to section “Notes” at page 4 for an explanation of the items referenced on this page and to page 12 onwards for the reconciliations		3

		PRESS RELEASE

 

Notes

 

CNH Industrial reports quarterly and annual consolidated financial results under U.S. GAAP and EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with U.S. GAAP. Financial results under EU-IFRS are shown in specific tables at the end of this press release.

 

(1)

This item is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Information” section 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.

 

(*)	c.c. means at constant currency.

 

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 operating results and enhance the readers’ ability to assess CNH Industrial’s 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 core operations. These non-GAAP financial measures have no standardized meaning under U.S. GAAP or EU-IFRS and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP and/or EU-IFRS.

 

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

 

•

Adjusted EBIT of Industrial Activities under U.S. GAAP: is defined as net income (loss) before income taxes, Financial Services’ results, Industrial Activities’ interest expenses, net, foreign exchange gains/losses, finance and non-service component of pension and other post-employment benefit costs, restructuring expenses, 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 EBIT of Industrial Activities under EU-IFRS: is defined as profit/(loss) before taxes, Financial Services’ results, Industrial Activities’ financial expenses, restructuring costs, and certain non-recurring items.

 

•

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 a 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 or benefits.

 

•

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 Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total debt less intersegment notes receivable, cash and cash equivalents, restricted cash, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and derivative hedging debt. CNH Industrial provides the reconciliation of Net Cash (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 Cash (Debt) of Industrial Activities.

 

•

Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities, only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in assets sold under buy-back commitments, assets under operating leases, property, plant and equipment and intangible assets; change in derivatives hedging debt of Industrial Activities; as well as other changes and intersegment eliminations.

 

•

Available Liquidity: is defined as cash and cash equivalents plus restricted cash, undrawn medium-term unsecured committed facilities and other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties).

 

•

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 under “2021 Outlook” and statements regarding our future responses to and effects of the COVID-19 pandemic; 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, liquidity, 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, including those related to the COVID- 19 pandemic, 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 they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, 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 unknown duration and economic, operational and financial impacts of the global COVID-19 pandemic and the actions taken or contemplated by governmental authorities or others in connection with the pandemic on our business, our employees, customers and suppliers, including supply chain disruptions caused by mandated shutdowns and the adverse impact on customers, borrowers and other third parties to fulfill their obligations to us; disruption caused by business responses to COVID-19, including remote working arrangements, which may create increased vulnerability to cybersecurity or data privacy incidents; our ability to execute business continuity plans as a result of COVID-19; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products, including demand uncertainty caused by COVID-19;

 

		4

		PRESS RELEASE

 

general economic conditions in each of our markets, including the significant economic uncertainty and volatility caused by COVID-19; travel bans, border closures, other free movement restrictions, and the introduction of social distancing measures in our facilities may affect in the future our ability to operate as well as the ability of our suppliers and distributors to operate; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining 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; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; 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; price pressure on new and 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; further developments of the COVID-19 pandemic on our operations, supply chains, distribution network, and level of demand for our products, as well as negative evolutions of the economic and financial conditions at global and regional levels; political and civil unrest; volatility and deterioration of capital and financial markets, including possible effects of “Brexit”, other pandemics, terrorist attacks in Europe and elsewhere; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan; the impact of significant or unanticipated material extraordinary transactions or any business combinations and other similar transaction on our businesses, our 2021 Outlook and other financial or business projections; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures, including our proposed acquisition of Raven Industries, Inc.; expected benefits and costs of the proposed spin-off of the Company’s On-Highway business; the expected timing of completion of the spin-off transaction; the ability of the Company to complete the spin-off transaction considering the various conditions to the completion of the spin-off transaction (some of which are outside the Company’s control); business disruption during the pendency of or following the spin-off transaction, diversion of management time on the spin-off transaction-related issues, 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, 2020, prepared in accordance with U.S. GAAP and in the Company’s EU Annual Report at December 31, 2020, prepared in accordance with EU-IFRS. Investors are expressly invited to refer to and consider the information on risks, factors, and uncertainties incorporated in the above-mentioned documents, 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, whether as a result of new developments or otherwise. The impact of COVID-19 has already exacerbated and is expected to further exacerbate all or part of the risks discussed in this section. 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.

 

Conference

Call and Webcast

 

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 2021 second quarter and first half results to financial analysts and institutional investors. The call can be followed live online at https://bit.ly/CNH_Industrial_Q2_2021 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.

 

London,

July 30, 2021

 

CONTACTS

 

 

 

		5

		PRESS RELEASE

 

CNH INDUSTRIAL N.V.

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020

(Unaudited, U.S. GAAP)

 

		Three Months Ended June 30,								Six Months Ended June 30,
($ million)		2021				2020				2021				2020
Revenues
Net sales			8,490				5,150				15,533				10,143
Finance, interest and other income			421				428				851				896
TOTAL REVENUES			8,911				5,578				16,384				11,039
Costs and Expenses
Cost of goods sold			6,867				5,114				12,600				9,528
Selling, general and administrative expenses			622				484				1,162				1,010
Research and development expenses			329				203				592				417
Restructuring expenses			8				7				10				12
Interest expense			147				170				308				351
Goodwill impairment charge			-				585				-				585
Other, net(1)			81				(1,295	)			298				(1,098	)
TOTAL COSTS AND EXPENSES			8,054				5,268				14,970				10,805
INCOME BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES			857				310				1,414				234
Income tax (expense) benefit			(188	)			40				(345	)			63
Equity in income of unconsolidated subsidiaries and affiliates			30				11				55				10
NET INCOME			699				361				1,124				307
Net income attributable to noncontrolling interests			9				11				26				22
NET INCOME ATTRIBUTABLE TO CNH INDUSTRIAL N.V.			690				350				1,098				285
(in $)
Earnings per share attributable to common shareholders
Basic			0.51				0.26				0.81				0.21
Diluted			0.51				0.26				0.81				0.21
Cash dividends declared per common share			0.132				-				0.132				-

Notes:

(1)	In the three and six months ended June 30, 2020, Other, net included the pre-tax gain of $1,475 million from the remeasurement at fair value of the investment in Nikola Corporation (pre-tax gain of $107 million and $72 million in the three and six months ended June 30, 2021, respectively).

These Condensed Consolidated Statements of Operations should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the Year Ended December 31, 2020 included in the Annual Report on Form 20-F. These Condensed Consolidated Statements of Operations represent the consolidation of all CNH Industrial N.V. subsidiaries.

 

		6

		PRESS RELEASE

 

CNH INDUSTRIAL N.V.

Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020

(Unaudited, U.S. GAAP)

 

($ million)		June 30, 2021				December 31, 2020
ASSETS
Cash and cash equivalents			7,820				8,785
Restricted cash			764				844
Trade receivables, net			522				506
Financing receivables, net			18,729				18,457
Inventories, net			7,471				6,022
Property, plant and equipment, net			4,667				4,923
Investments in unconsolidated subsidiaries and affiliates			504				529
Investments at fair value through profit and loss			464				392
Equipment under operating leases			1,910				1,978
Goodwill, net			1,925				1,924
Other intangible assets, net			763				772
Deferred tax assets			1,418				1,451
Derivative assets			136				160
Other assets			2,129				1,976
TOTAL ASSETS			49,222				48,719
LIABILITIES AND EQUITY
Debt			24,512				26,053
Trade payables			7,103				6,357
Deferred tax liabilities			106				112
Pension, postretirement and other postemployment benefits			1,531				1,617
Derivative liabilities			171				139
Other liabilities			9,725				9,412
Total Liabilities			43,148				43,690
Redeemable noncontrolling interest			44				40
Equity			6,030				4,989
TOTAL LIABILITIES AND EQUITY			49,222				48,719

These Condensed Consolidated Balance Sheets should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the Year Ended December 31, 2020 included in the Annual Report on Form 20-F. These Condensed Consolidated Balance Sheets represent the consolidation of all CNH Industrial N.V. subsidiaries.

 

		7

		PRESS RELEASE

 

CNH INDUSTRIAL N.V.

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020

(Unaudited, U.S. GAAP)

 

		Six Months Ended June 30,
($ million)		2021				2020
Operating activities:
Net income			1,124				307
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			306				307
Depreciation and amortization expense of assets under operating leases and assets sold under buy-back commitments			271				259
Loss on repurchase of notes			8				-
Undistributed income of unconsolidated subsidiaries			27				21
Goodwill impairment charge			-				585
Other non-cash items(1)			-				(978	)
Changes in operating assets and liabilities:
Provisions			151				(152	)
Deferred income taxes			(1	)			(161	)
Trade and financing receivables related to sales, net			(344	)			984
Inventories, net			(1,205	)			299
Trade payables			806				(954	)
Other assets and liabilities			228				18
NET CASH PROVIDED BY OPERATING ACTIVITIES			1,371				535
Investing activities:
Additions to retail receivables			(2,398	)			(2,069	)
Collections of retail receivables			2,397				2,129
Proceeds from sale of assets, net of assets under operating leases and assets sold under buy-back commitments			13				5
Expenditures for property, plant and equipment and intangible assets, net of assets under operating leases and assets sold under buy-back commitments			(203	)			(132	)
Expenditures for assets under operating leases and assets sold under buy-back commitments			(606	)			(482	)
Other			32				(86	)
NET CASH USED IN INVESTING ACTIVITIES			(765	)			(635	)
Financing activities:
Net increase (decrease) in debt			(1,298	)			372
Dividends paid			(183	)			(3	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			(1,481	)			369
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash			(170	)			(174	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH			(1,045	)			95
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR			9,629				5,773
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD			8,584				5,868

Notes:

(1)	In the six months ended June 30, 2020, this item included the pre-tax gain of $1,475 million from the remeasurement at fair value of the investment in Nikola Corporation (pre-tax gain of $72 million in the six months ended June 30, 2021).

These Condensed Consolidated Statements of Cash Flows should be read in conjunction with the Company’s Audited Consolidated Financial Statements and Notes for the Year Ended December 31, 2020 included in the Annual Report on Form 20-F. These Condensed Consolidated Statements of Cash Flows represent the consolidation of all CNH Industrial N.V. subsidiaries.

 

		8

		PRESS RELEASE

 

CNH INDUSTRIAL N.V.

Supplemental Statements of Operations for the three months ended June 30, 2021 and 2020

(Unaudited, U.S. GAAP)

 

		Three Months Ended June 30, 2021																		Three Months Ended June 30, 2020
($ million)		Industrial Activities(1)				Financial Services				Eliminations				Consolidated						Industrial Activities(1)				Financial Services				Eliminations				Consolidated
Revenues
Net sales			8,490				-				-				8,490						5,150				-				-				5,150
Finance, interest and other income			17				439				(35	) (2)			421						13				441				(26	) (2)			428
TOTAL REVENUES			8,507				439				(35	)			8,911						5,163				441				(26	)			5,578
Costs and Expenses
Cost of goods sold			6,867								-				6,867						5,114				-				-				5,114
Selling, general and administrative expenses			580				42				-				622						396				88				-				484
Research and development expenses			329				-				-				329						203				-				-				203
Restructuring expenses			8				-				-				8						7				-				-				7
Interest expense			76				106				(35	) (3)			147						72				124				(26	) (3)			170
Goodwill impairment charge			-				-				-				-						585				-				-				585
Other, net			(87	)			168				-				81						(1,455	)			160				-				(1,295	)
TOTAL COSTS AND EXPENSES			7,773				316				(35	)			8,054						4,922				372				(26	)			5,268
INCOME BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES			734				123				-				857						241				69				-				310
Income tax (expense) benefit			(158	)			(30	)			-				(188	)					60				(20	)			-				40
Equity in income of unconsolidated subsidiaries and affiliates			24				6				-				30						7				4				-				11
NET INCOME (LOSS)			600				99				-				699						308				53				-				361

Notes:

(1)

Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.

(2)	Elimination of Financial Services’ interest income earned from Industrial Activities.

(3)	Elimination of Industrial Activities’ interest expense to Financial Services.

CNH INDUSTRIAL N.V.

Supplemental Statements of Operations for the six months ended June 30, 2021 and 2020

(Unaudited, U.S. GAAP)

 

		Six Months Ended June 30, 2021																		Six Months Ended June 30, 2020
($ million)		Industrial Activities(1)				Financial Services				Eliminations				Consolidated						Industrial Activities(1)				Financial Services				Eliminations				Consolidated
Revenues
Net sales			15,533				-				-				15,533						10,143				-				-				10,143
Finance, interest and other income			33				887				(69	) (2)			851						28				930				(62	) (2)			896
TOTAL REVENUES			15,566				887				(69	)			16,384						10,171				930				(62	)			11,039
Costs and Expenses
Cost of goods sold			12,600				-				-				12,600						9,528				-				-				9,528
Selling, general and administrative expenses			1,066				96				-				1,162						860				150				-				1,010
Research and development expenses			592				-				-				592						417				-				-				417
Restructuring expenses			10				-				-				10						12				-				-				12
Interest expense			158				219				(69	) (3)			308						146				267				(62	) (3)			351
Goodwill impairment charge			-				-				-				-						585				-				-				585
Other, net			(33	)			331				-				298						(1,440	)			342				-				(1,098	)
TOTAL COSTS AND EXPENSES			14,393				646				(69	)			14,970						10,108				759				(62	)			10,805
INCOME BEFORE INCOME TAXES AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES			1,173				241				-				1,414						63				171				-				234
Income tax (expense) benefit			(282	)			(63	)			-				(345	)					113				(50	)			-				63
Equity in income of unconsolidated subsidiaries and affiliates			43				12				-				55						(2	)			12				-				10
NET INCOME			934				190				-				1,124						174				133				-				307

Notes:

(1)

Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.

(2)	Elimination of Financial Services’ interest income earned from Industrial Activities.

(3)	Elimination of Industrial Activities’ interest expense to Financial Services.

 

		9

		PRESS RELEASE

 

CNH INDUSTRIAL N.V.

Supplemental Balance Sheets as of June 30, 2021 and December 31, 2020

(Unaudited, U.S. GAAP)

 

		June 30, 2021																				December 31, 2020
($ million)		Industrial Activities(1)				Financial Services				Eliminations				Consolidated								Industrial Activities(1)				Financial Services				Eliminations				Consolidated
ASSETS
Cash and cash equivalents			7,306				514				-				7,820								8,017				768				-				8,785
Restricted cash			125				639				-				764								99				745				-				844
Trade receivables, net			524				18				(20	) (2)			522								508				23				(25	) (2)			506
Financing receivables, net			1,309				19,944				(2,524	) (3)			18,729								902				19,428				(1,873	) (3)			18,457
Inventories, net			7,450				21				-				7,471								5,981				41				-				6,022
Property, plant and equipment, net			4,666				1				-				4,667								4,922				1				-				4,923
Investments in unconsolidated subsidiaries and affiliates			265				239				-				504								256				273				-				529
Investments at fair value through profit and loss			464				-				-				464								392				-				-				392
Equipment under operating leases			62				1,848				-				1,910								65				1,913				-				1,978
Goodwill, net			1,768				157				-				1,925								1,767				157				-				1,924
Other intangible assets, net			747				16				-				763								755				17				-				772
Deferred tax assets			1,405				177				(164	) (4)			1,418								1,422				189				(160	) (4)			1,451
Derivative assets			84				65				(13	) (5)			136								103				76				(19	) (5)			160
Other assets			2,081				168				(120	) (2)			2,129								1,919				172				(115	) (2)			1,976
TOTAL ASSETS			28,256				23,807				(2,841	)			49,222								27,108				23,803				(2,192	)			48,719
LIABILITIES AND EQUITY
Debt			7,454				19,581				(2,523	) (3)			24,512								8,288				19,638				(1,873	) (3)			26,053
Trade payables			6,947				178				(22	) (2)			7,103								6,167				220				(30	) (2)			6,357
Deferred tax liabilities			11				259				(164	) (4)			106								14				258				(160	) (4)			112
Pension, postretirement and other postemployment benefits			1,510				21				-				1,531								1,597				20				-				1,617
Derivative liabilities			140				44				(13	) (5)			171								102				56				(19	) (5)			139
Other liabilities			9,150				694				(119	) (2)			9,725								8,842				680				(110	) (2)			9,412
Total Liabilities			25,212				20,777				(2,841	)			43,148								25,010				20,872				(2,192	)			43,690
Redeemable noncontrolling interest			44				-				-				44								40				-				-				40
Equity			3,000				3,030				-				6,030								2,058				2,931				-				4,989
TOTAL LIABILITIES AND EQUITY			28,256				23,807				(2,841	)			49,222								27,108				23,803				(2,192	)			48,719

Notes:

(1)

Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes the Company’s Agriculture, Construction, Commercial and Specialty Vehicles and Powertrain segments, and other corporate assets, liabilities, revenues and expenses not reflected within Financial Services.

(2)	Eliminations of primarily receivables/payables between Industrial Activities and Financial Services.

(3)	Eliminations of financing receivables/payables between Industrial Activities and Financial Services.

(4)	Reclassification of deferred tax assets/liabilities in the same jurisdiction and reclassification needed for appropriate consolidated presentation.

(5)	Elimination of derivative assets/liabilities between Industrial Activities and Financial Services.

 

		10