CNH Industrial Capital Solutions

Presentation of the company

CNH Industrial N.V. (NYSE:. CNHI /MI:. 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.

CNH Industrial was founded in 2013, following the merger of Fiat Industrial and CNH Global, and is a global leader in the capital goods sector. Today, CNH Industrial employs over 64,000 people and has 66 manufacturing plants and 54 research and development centres and is present in over 180 national markets. CNH Industrial is listed on the New York Stock Exchange and on Borsa Italiana: a constituent of the FTSE MIB index. Moody’s Investors Service assigned a ‘Baa3’ senior unsecured rating to CNH Industrial N. V. , with a stable outlook; Fitch Ratings (“Fitch”) has improved the Outlook of CNH Industrial N. V. to Positive from Stable. Fitch has also affirmed CNH Industrial N. V. ’s and CNH Industrial Capital LLC’s Long-Term Issuer Default Ratings at ‘BBB- .

CNH Industrial Capital is a global Financial Services player in the Agricultural, Construction Equipment and Commercial & Specialty Vehicles segments.

CNH Industrial Capital operates around the Globe with more than $26 billion in Managed Assets (including unconsolidated joint ventures).

CNH Industrial Capital supports the CNH Industrial brands’ customers and dealers with a dedicated suite of financial solutions through various wholly owned subsidiaries, joint ventures and vendor programs around the world.

Project Description

The group wishes to borrow € 100 000 over 24 months as part of the Grow Together initiative (which already involved AccorHotels, The Adecco Group, Allianz France, Arkéa, Edenred, ENGIE, Iliad, JCDecaux, SUEZ, Unibail-Rodamco-Westfield e Webhelp).

Thanks to the Grow Together initiative, some major European groups will show the way towards funding diversification for SMEs by borrowing on our lending platform.

In October 2014, a new regulation opening a breach in the banking monopoly allowed SMEs to borrow directly from individuals and institutions alongside the traditional banking system. Small and medium-sized companies now have a choice.

CNH Industrial will enable its SME partner network to borrow up to € 1 000 000 in total, without any upfront fee.

This project, which is part of the Grow Together initiative, is only available to individual investors on the platform. Unlike all the other projects presented on the platform, institutional investors and October’s management cannot lend on the projects of this campaign.

Analyst’s Opinion

The borrower is Italian Financial company of the Group. The financial analysis was carried out on the consolidated financial statements, which reflects the group’s performance.

With a turnover of 29 736 000 000 € in 2018 and an experienced team, the company has a good track record combined with a two-digits operating margin.

The increase in sales and profitability was driven by improved market condition especially for agricultural machinery business unit. The forecast is based on the performance of 2018.

The borrower has a solid repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,86 and a strong financial structure, with a forecast net debt / ebitda ratio of 1,82 and a net debt / shareholder equity of 86%.

Financial debt take into account market value of receivables.

The analysis of the project leads to a credit rating of A+ and a 2,5% annual interest rate.

*The multiple of FCCR at 1,86 means that the company has a safety margin of 86% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong Points:

• Good historical performance based on diversified client base;
• Solid repayment ability with a forecasted FCCR of 1,86;
• Strong Brand Portfolio.

Points of caution:

• Competitive market.