Iveco Group presents its Business, Strategy and 2026 Financial Ambitions

Demerger will create a leading, global Commercial and Specialty Vehicles, Powertrain and related Financial Services company

Focus on sustainable value creation through the continued embrace of new technologies and smart partnerships for a step change in financial performance

2026 Ambitions:

•            Total net revenues of Industrial Activities at between €16.5 – 17.5 billion (2019: €11.8 billion)

•            Adjusted EBIT margin of Industrial Activities at between 5.0% – 6.0% (2019: 3.6%)

•            Adjusted Net Profit at between €0.6 – 0.8 billion (2019: €0.3 billion)

Shareholders to receive 1 new #iveco Group N.V. share for every 5 CNH Industrial N.V. shares owned

Iveco Group signed The Climate Pledge, a commitment co-founded by Amazon and Global Optimism to reach net zero carbon by 2040

In the context of the demerger (the “Demerger”) of #iveco Group (“Iveco Group” or “the Group” or  “the Company”) from CNH  Industrial N.V. (“CNH  Industrial”), Iveco Group’s senior management is meeting today with the financial community to  present the Company’s business, strategy, and 2026 financial ambitions, as well as the terms of the Demerger that will result in the listing of its common shares on the regulated market of Euronext Milan stock exchange expected on January 3, 2022, subject to shareholders and regulatory approvals.

Demerger Rationale

For full details on the Reasons for the Demerger, please refer to section 4.1 of the Prospectus, which is available on the Company’s website, at the url:

 www.ivecogroup.com/investo_relations/demerger_documents

The Demerger of #iveco Group from CNH Industrial will create an independent ‘pure player’ focused on its leading Commercial and Specialty Vehicles, Powertrain, and Financial Services businesses. The intention to separate its “On-Highway” (now named “Iveco Group”) and “Off-Highway” (Agriculture and Construction) businesses was first announced by CNH Industrial at its Capital Markets Day, held on September 3, 2019.

The reasons presented for the Demerger remain valid and follow the completion of a deep portfolio review process, taking into account, among other things, strategic, investor, and synergy considerations. This review highlighted that the “On-Highway” and “Off-Highway” businesses have diverging regulatory and customer requirements and are impacted differently by the accelerating industry megatrends. The Demerger is intended to maximize management focus and flexibility, aligns investment priorities and incentives, better meets respective business needs, and optimizes the cost and capital structure of each Company to drive profitable growth.

The creation of #iveco Group is expected to allow the intrinsic value of the Company to be properly  expressed  for  the  first  time  and  to  better  enable  it  to  capture  the  significant opportunities of an industry undergoing fundamental changes. Specifically, it is expected that #iveco Group will be better able to anticipate its customers’ changing mobility needs, investing and partnering in the technologies of the future to address, amongst other things, the requirements of ever-stricter emissions standards worldwide.

The #iveco Group believes it is well-placed to benefit from these trends thanks to:

•            Its strong, historic presence across the full range of Commercial and Specialty Vehicles;

•            Its focus on innovation and the development of advanced and sustainable solutions, including reduced- and zero-emissions powertrains, the development of advanced, cloud-connected driver assistance systems, and the exploration of emerging autonomous driving technologies; and

•            A proven ability to reinforce these existing competitive strengths through the creation of innovative and mutually beneficial partnerships.

A New, Independent Leader with a Well-Balanced, Diversified Business

For full details on the Business Description, please refer to section 10 of the Prospectus, available at the url: www.ivecogroup.com/investor_relations/demerger_documents

As a result of the Demerger, #iveco Group N.V. will become the holding company of a leading global capital goods group engaged in the design, production, marketing, sale, servicing, and financing of trucks, commercial vehicles, buses and specialty vehicles for firefighting, defence and other uses, as well as combustion engines, alternative propulsion systems, transmissions and axles for those vehicles and engines and alternative propulsion systems for agricultural and construction equipment and for marine and power generation applications.

In particular, Commercial and Specialty Vehicles designs, manufactures, and distributes a full range of light, medium, and heavy vehicles for the transportation and distribution of goods under the IVECO brand; city and intercity buses and tourist coaches under the IVECO BUS and HEULIEZ brands; vehicles for civil defense and peace-keeping missions under the Iveco Defence Vehicles brand; quarry and mining equipment under the ASTRA brand; firefighting vehicles under the Magirus brand.

Powertrain designs, manufactures, and distributes, under the FPT Industrial brand, a range of combustion engines, alternative propulsion systems, transmission systems and axles for on- and off-road applications, as well as for marine and power generation.

Financial Services offers a range of financial products and services to Iveco Group dealers and customers under the IVECO CAPITAL brand. Additionally, Financial Services, leveraging on its specific expertise, will grant support to CNH Industrial post-demerger financial services in Europe, Africa and the Middle East, by providing business process services and receiving fees for the services rendered.

The Company’s statutory seat is in Amsterdam, the Netherlands, and its principal office and business address is via Puglia 35, Turin, Italy. Following the Demerger, the Group will employ some 33,500 people, with manufacturing, commercial, and financial services companies in 36 countries.

Iveco Group’s Strengths and Strategies

For full details on the Group’s Strength and Strategies, please refer to section 10.3 of the Prospectus, available at the url: www.ivecogroup.com/investor_relations/demerger_documents

Guided by a strong and talented management team led by designated Chief Executive Officer Gerrit Marx, the Company will strive to deliver the best value performance and quality across its business areas and superior customer service delivery, while leveraging on a strong ecosystem of mutually beneficial partnerships.

•            Diversified Business Portfolio with Strong Market Positions

The Group is a leading Light Commercial Vehicles (LCV) player, with strong brand positions in Europe and South America. In Europe, it is number three in the >3.5-ton LCV segment through the #iveco Daily product line, one of the most successful light commercial vehicles, especially in the body-on-frame segment (6.01 tons ‒ 7.49 tons) where it has a consolidated #1 leadership position.

It has a longstanding presence in the Medium and Heavy-Duty #truck segments, as a full-line, value-for-money manufacturer. It offers applications for both on- and off-road usage, and it is the leader in the fast-growing natural gas-powered long-haul commercial vehicles market in Europe, with a 50% share.

The Group further enjoys a strong bus business, being the market leader in European intercity and city segments.

•            Complete Powertrain Offering Gives the Group an Edge for the Upcoming Powertrain Revolution

Iveco Group’s Powertrain business is a competitive and innovative player with a diverse customer base, holding a leading market position globally in non-captive powertrain sales, and a strong core offering in internal combustion diesel and natural gas engines.

Thanks to in-house capabilities and smart partnerships, the complete powertrain offering  is complemented  by  a  synergistic  driveline  business  which  enhances  the technological intellectual property (IP) and usability of its innovative powertrains (e.g., e-Axle).

The Group is well positioned for the Low-to-Zero-Emission future of propulsion. This is thanks to a balanced strategy, leveraging its consolidated presence in highly efficient and low-emission internal combustion diesel engines, its leadership in Liquefied and Compressed Natural Gas (LNG/CNG) technology, and Battery Electric/Fuel Cell Electric Vehicle (BEV/FCEV) technologies for the future, with the goal to achieve net zero emissions by 2040. 

Further information in the press release to download