Ladies and gentlemen, before we begin today's presentation, please review the safe harbor statement displayed on the screen. Please note that any forward-looking statements we make today are subject to the risk and uncertainties mentioned in the safe harbor statement. Additional information pertaining to factors that could cause actual results to differ materially is contained in the company's reports and filings with the U.S. Securities and Exchange Commission and the equivalent authorities in the Netherlands and Italy. All financial data provided herein is prepared in accordance with U.S. GAAP and denominated in the US dollar. Following the spin-off of the Iveco Group business effective January 1, 2022, we have also provided unaudited pro forma results for CNH Industrial after the spin-off for informational purposes. Additional information regarding the pro forma and non-GAAP measures, including reconciliations to the most directly comparable GAAP financial measures, is included in the presentation material. Ladies and gentlemen, please welcome Head of Investor Relations, Noah Weiss. Good afternoon, ladies and gentlemen. Good afternoon and evening to those who are joining us in the live webcast. Welcome to the 2022 CNH Industrial Capital Markets Day here at the historic Fillmore Theater in Miami Beach, Florida. My name is Noah Weiss, Head of Investor Relations, and we are very excited to have you with us today. This event is being broadcast live on our website and is copyrighted by CNH Industrial. Any other use, recording or transmission of any portion of this broadcast without the expressed written consent of CNH Industrial is strictly prohibited. All of today's presentation material will be uploaded to the CNH Industrial Investor Relations section of our website. By clicking on the banner on the homepage, you will automatically be redirected to the appropriate section. For attendees here in the room, we have provided a tablet that you will see on your table. During the day, as each speaker takes the stage, their respective presentations will be accessible for you to read, as well as being projected on the screen behind me. For those following the webcast, you will see the slides in real time with the option of revisiting prior slides. Now let's take a closer look at today's agenda. We will have two sessions with a 20-minute break after Derek's Ag segment deep dive. We will wrap up the presentations later today with a 45-minute Q&A session alternating between the online and in-room guests. With that, let's get started. Ladies and gentlemen, please welcome Chief Executive Officer, Scott Wine. Good afternoon, and welcome to all online, but specific thanks to all of you that are here. I mean, welcome to Miami Beach. I think it's a scene out front that you probably haven't seen if you've been in this town before, but we're certainly proud to show you what we've got both here on stage and out front. You know, I'd like to start by thanking our chairwoman, Lady Suzanne Heywood, who's here with us today. Really, it was her vision and the support of the board of directors and Exor, our largest shareholder, that made today possible. Because what we're gonna talk a lot about today is being a more customer-focused centric organization. By executing the spin at the beginning of the year, we created two very separate customer-focused organizations, and that's what enabled this. I think what you're gonna see us talk about today is what the new, smaller, more agile, more customer-focused business can be. We're excited that you're here, and we certainly appreciate it. I'm gonna start by playing a quick video that will hopefully give you an idea about why I'm so excited to be part of this team. When you're part of a company that's helped feed generations, built cities, and transformed industry time and time again, it's easy to rest on your laurels. But that's not us. At CNH Industrial, we never stop breaking new ground. In an ever-changing world with never-ending challenges, too much depends on what we do. It's a singular focus shared by each and every member of our team. Breaking new ground leads us to innovations that combine the strength of our past with the intelligence of tomorrow. Creating customer-focused solutions for real-world problems. Providing alternative fuels for ever-changing needs. Autonomous, automated, and precision systems that streamline production and boost profitability. Breaking new ground guides us to greater productivity, allowing us to do more with less. In a fast-moving world, we stay a step ahead, forecasting challenges and finding future-proof solutions, and supporting time-honored skills with cutting-edge science. For us, breaking new ground also goes beyond machinery. Which is why we continue our commitment to sustainability. With alternative fuels and electrification, lower emissions and less waste, we're meeting the challenges of a changing world. From the farm fields to the executive office, finding new ways to improve, challenge, and transform is at the core of all we do. For the people working to feed the world and build for the future, every day is our chance to make a difference. We're CNH Industrial, breaking new ground, relentlessly working for a brighter future. You know, I'm really proud of Laura Overall and the communications team for coming up with this because I think this new purpose, corporate purpose really serves us well. If you think about the idea of breaking new ground, it's what our equipment does, both on the construction and the Ag side, but also innovation, sustainability, and productivity are the things that will drive us going forward. You will see those themes play out in what I talk about today and what each of our presenters talk about because, you know, this represents our North Star of what we will be and what we will follow on the way forward. We're excited about this. It's quite simple, but it really does speak very directly to who we are as a company. You know, I'm proud to be up here today with six other presenters. The seven of us represent the 33,000 employees of CNH Industrial. One of the things I regularly hear from our team is how proud they are of our global diversity, and that's represented on this side. Derek's from Scotland, Selin is from Turkey, we've got a couple of Italians, a couple of Americans, so we do bring a bit of diversity to the crowd. More than that, we bring a lot of experience. Now, the order of the presenters really should give you an idea of where we're putting our priorities as a company. Parag Garg, our new Chief Digital Officer, will come up and really tell you about the Raven acquisition, but how we're integrating that. Parag brings tremendous experience from consumer electronics, where he brought many new products to market, and now he's excited to be with us to do that in the Ag and construction space. Derek will then follow to talk about the Ag business. We're really proud of the fact that that's now the largest part of our business. Derek's got 20-some years with the company, one of the best operators I've ever worked with, and thankful that we've had him through the pandemic and the resulting supply chain situations. I think you'll be really impressed with the story he puts out today. He'll be followed by Stefano Pampalone, who's spent most of his time with us in our international businesses, and you know how tough sometimes those can be. Stefano has led an incredibly strong turnaround in our construction business. I think when we're done today, you'll see why we feel like that's an important part of our future. Selin Tur will come up and follow that with electrification and alternative powertrain technologies and how we expect to be a leader in that space. Selin's background with electrical powertrains more in the high energy automotive sector, but really understanding now how to do that in a little bit slower vehicles, and we're excited to have Selin here today. Kelly Manley will talk about sustainability, and she really leads transformation. I'll talk about culture today. She's leading that effort for us. Really we'll talk about our commitment to continuing the strong sustainability focus we've had as a company over the last decade. Oddone Incisa who will come up and I like to say that, you know, Oddone Incisa's been CFO for just about exactly two years now. I think if you compare what he's done in those two years, it would stack up to what most CFOs do in a decade because it really has been almost everything thrown at him, executing the spin, executing the largest acquisition in the company's history, and really thankful to have Oddone Incisa as a partner with us. Let's jump in. You know, one of the things that I've done is tried to spend as much time out talking to our dealers and customers, and what I regularly heard was this idea that we deliver great iron. If you've got a chance to look at any of the machines out front, I think you can see, you know, why we also believe that true. But the term great iron has really been something that resonates with me, and it gets repeated over and over, and it talks about our brands, it talks about our automation. But they also said, usually in the next sentence, "But we wish that you could be great with technology." With the acquisition of Raven, we don't become great right away, but it puts us on a path to greatness. What we're gonna talk about is this idea of marrying great iron with great technology. It's not just Raven, it's Augmenta, it's our investment in Monarch, it's our partnerships with Trimble. It's just so many different things that we can do with technology now with Raven at the core. What we believe is that by marrying that with a much greater customer focus, we actually can have a very bright future. Everything we do depends on our team, that 33,000 members of our global team that I talked about. I talked about spending time talking to dealers and customers, but I also spent time talking to a lot of our employees at various levels of the company all over the world, and I typically started the conversation with the same five questions. What three things do you want me to change? What three things do you wanna protect? What are you worried I might do? What do you want me to do, and what else do you wanna talk about? Through those conversations, I got the guidepost really for this entire plan. One of the things that came out most significantly was the request to get rid of our bureaucracy. They were very clear about it. "Scott, we're too bureaucratic. We're too slow." In the same sentence, they talked about wanting to be more focused on and do better for our customers. What we as a leadership team, we spent a lot of time with our organization, driving, as we did the spin, reorganizing our company so we would have less managers to be bureaucratic, but also how could we design the organization to be more customer-focused, put more people at the front end of the business, which I'll talk about. Really this idea of culture for us was how do we do that to get rid of our bureaucracy once and for all? Really, what we're doing, Kelly Manley's driving it's all part of our CNHi business system that we'll talk about, but we're driving a culture change to get better results. The better results that we're focused on are that, we call it the focus five, that red circle you see, putting the customer at the middle of everything we do. Striving to deliver better products, better service to our customers. At the same time, we do that by creating incredibly safe working environment for our employees, delivering world-class quality, improving delivery of both the products and services that we deliver at best-in-class levels, and ultimately doing that while driving improving profitability. We believe internally, if we deliver on those five things, we will have achieved success. If you look at the beliefs on the right, almost all of those are about how do we become better for our customers? So our commitment to improving, evolving our culture in a more positive way, we're very, very excited about. Let me tell you why I'm excited about both of our businesses and we do have two strong businesses. Construction's smaller, you'll see that on the next slide. At over $3 billion this year, approaching $4 billion next year, it is a very strong and growing, profitability growing business. Let's first talk about Ag. The business that Derek plays in is over $100 billion total addressable market, worldwide, and we are a very global company. We have renowned brands. You know, I hear a lot of conversations about, you know, how are you gonna manage Case IH and New Holland together? Derek's got a great slide that talks about the parity of those on a worldwide basis. What we believe is we've got the governance now to drive those to a much better place, and allow us to become number one in more places going in the future. Machine automation is something that our customers value. It's in our combines and we drive world-class productivity. Remember, this game in Ag is really about productivity and yield. What you'll see us talk about is how are we delivering that better for our customers going forward. Raven is a nice shot in the arm from a technology perspective. John Preheim is here today. Thrilled to have him leading that technology effort and what they've done so much with autonomy at Raven. We're also, as you'll see with Ling, expect to be leaders in autonomy, alternative powertrains. We really, really like our Ag business. Now let's talk about construction. The Case brand in construction, I've been really surprised how strong it is. New Holland Construction is also really strong. Where we're located, the markets that we serve, predominantly North America and South America, we have great opportunities for profitable growth in construction. The Eurocomach business will certainly help, and we're investing in our partnerships that we can do more driving profitable growth across the portfolio in our business. Really, there's a great opportunity. What we're finding is that as we invest more in Ag, construction gets a lot of the benefits. We get a lot of innovation focused in construction off of tailwinds of Ag. We really like where Stefano's got that business, and I'm excited for you to hear what he's got to say today. Looking at how those break down from a revenue perspective, you can see just over three-quarters of the business is Ag today. Construction is not quite up to 20%, but I suspect, you know, they'll continue to grow over time. Then financial services is a small part of the overall revenue scheme, but very much an enabler to what we drive in the rest of our businesses. Our dealers and our customers rely on our financial services business, and since Oddone ran it for so long, you can trust that that is a very disciplined business and profitable success for our company. Looking at our global footprint, as I mentioned earlier, you know, we're exactly even between North America and Europe. That mostly represents the strength of the Case IH brand in North America and the New Holland brand in Europe. It's not exactly that way, but essentially that's how it falls out. South America, it's only 16% of our business, but I would argue what Vilmar Fistarol has done is created our most successful, our highest net promoter scores. They know how to manage the high swings in inflation in that region. What Chun Woytera has over in APAC is a great opportunity to continue growth in the Asia-Pacific region without a significant reliance on China. We have great opportunities for growth in Indonesia, in India, and across the Asia region without having to rely too much on the very difficult China market. The global reach of our business and our footprint is one of the huge competitive advantages that we have. We also recognize because we're so global, it is a very, very dynamic world. If you read the newspapers this morning or listened to the news last night, you know, with Russia perhaps moving into parts of Ukraine, you never know what's gonna happen over in Asia-Pacific if Xi Jinping thinks that Taiwan is an attractive. I mean, this is a very, very difficult world we're in. We understand that. It's not like we're taking all of these factors into our business. COVID-19 we believe is waning, but we know how to deal with it. The geopolitics, it's probably gonna get worse before it gets better, so we understand that we're gonna deal with it. I'm worried about inflation. Global debt is a big problem, and that usually ties directly to inflation. The Fed's gonna try to handle that here in the U.S. What happens is that drives down market demand. We're factoring that into our thinking. Certainly, the tech acceleration, we all feel it every day. As I was putting this slide together, I realized that 30 years ago, when I graduated from the Naval Academy, I was the last class to graduate without a computer. If you think about the technology that we see every day and that advancement over the last 30 years is probably gonna happen in the next five. That's how fast things are moving. We're gonna be prepared for it. We think more specifically about how those impact our business. You know, we expect to benefit from population growth. We expect to benefit as we provide better precision autonomy to let farmers get more productivity, as skilled labor is so difficult to find. The North American Infrastructure Bill is likely to be helpful. I'm surprised it got passed, but it did. On the negative side, I talked about interest rates, not gonna be helpful. The semiconductor problem is not going away. We'll battle through this year, probably get better in 2023, but it's a challenge. Certainly, the regulatory environment, sometimes it's our friend, and often it's not. We'll be ready no matter what happens. Then the things that we think are just on balance. The one that I'd like to highlight here is the Ag cycle. What we are assuming in this plan is the Ag cycle is not hurtful nor helpful through the plan period. We're essentially gonna see ups and downs through the next three years that are essentially gonna keep us what we think relatively flat from a market perspective. The performance you see is what we believe we can generate without tailwinds of the market. Where does that leave us? With five strategic priorities that I believe if we execute well, and we will, that can make this company better for our customers, better for our dealers, better for our investors, and better for our employees and all other stakeholders. The first is customer-inspired innovation. You will see in all of our presentations that theme coming through loud and clear. Technology leadership, I think if you saw the $2.2 billion check we wrote to bring in Raven, our commitment to being a leader in technology. Parag will talk about it, Selin will talk about it. We really believe that is a very important part of our future. Brand and dealer management. We are pleased with our historical brands. We need to better leverage them, and we need to enhance the relationships with the dealers. We're working towards that. Operational excellence. I think we all know the value of just being better fundamentally, being fundamentally sound. You'll see our commitment to that. Ultimately, the sustainability stewardship is key. What we expect to get when we deliver on those five strategic imperatives. First of all, customer success. We'll measure that with net promoter scores. We have it in our major regions and major product lines. That's where we'll measure it, and we have opportunities for improvement. That puts money behind our commitment to being better for our customers. We expect to gain market share, not massive amounts, but 200 basis points over the three-year plan period is not easy, but you'll see our investments. We need to get that result, over time. Not buying market share. We're gonna derive margin expansion. We believe we can get the entire company to a 24%+ gross margin over the period. Certainly with room to grow from there, but certainly that's a nice near-term target. We also believe we've got to deliver an opportunity. Our business model enables us to generate a lot of cash. We expect to be able to convert most of that and have opportunities, and we'll talk about capital allocation later. Really our returns on invested capital right at 19%, we're pleased with that. We're gonna be careful with our investments and expect to invest in those projects that give us the best return. Ultimately, with sustainability, you know, we'll talk about our deep commitment to getting that right going forward. Let's start quickly with what we've done. This is not a plan that starts out with these grand goals, but we've got to start from ground zero. We've got a running start into this plan, and I'm pretty proud of what the team's done in a very difficult environment. Executing the spin allows us and Iveco Group to be more customer-focused companies. We took the opportunity to rationalize our organization, and we've got, you know, 2x s more customer-focused people in our organization and 5x more people in our tech community as we go forward. Our strong partners in our ecosystem, we've become and with our CNH Industrial Ventures that was announced this morning, we've become a more welcoming partner for those innovative tech companies to come and be part of what we do. Monarch and Augmenta are a perfect example of that. The Raven acquisition, we've talked about it a lot. Parag will explain how we're going to leverage that. Let me just tell you why I'm so happy to have that team as part of our business. You know, we've known them for a long time. They were a supplier. They make great technology that our dealers and customers love. What we didn't realize is how strong that team and culture is, and that's what's driving us to what we call a reverse integration. That's not easy when you're this big global conglomerate to let this little company have their culture and their influence come back on. That's what we're striving to do. They can make us significantly better. Their technology is rock. Their stack, and Parag will talk about the stack. How are we gonna bring Raven in? Not quite plug and play, but darn close to make our stack significantly better for our farmers and growers. We believe the new products, the proof is in the pudding of what products do we bring out with this technology. There's a couple of examples here, and there'll be many, many more over time, but we're really excited to have that team as part of CNH Industrial, and we believe it's good. There were two businesses that we bought that aren't core CNH Industrial. We've got the process underway to find the right owners for those businesses and we believe that will be good for both them and certainly to reduce a little bit of the cost we had there. Overall, we are very pleased with the Raven acquisition and what that will mean for the company going forward. On brand and dealer strength and on operational excellence, there's a lot of work to do, but we're starting, I guess, again, with a running start. You know, we've got an organization that is global in nature but set up in regions. The regions own the brands and the ability to serve customers. We think that will be helpful. We've really put a lot of focus on our dealer engagement, and I think you'll see that we're making a lot of progress there. We've got a leaner, flatter, more agile organization. Our delegations of authority have gone down significantly, so we can do things faster. All of that designed as our employees asked for. Can we reduce the bureaucracy in the company? Then sustainability stewardship. You know, we have a long history of having the best scores on ESG, getting the best awards consistently from the various companies. We got Sustainable Tractor of the Year for our methane tractor this year. Again, all of these things give us a running start into the plan. Very quickly, customer-inspired innovation. This idea of understanding our customers better. Seeing them in the field, on the construction site, understanding how they're using the equipment to just feed that back to our team, so they can deliver exactly what they need, not what we think they need. You know, we've got over 200 Over the plan period, the next three years, I think it's about 150 products in ag and over 50 in construction that we'll bring to the market, understanding what's better for our customers. This rigorous in-field testing is the ability to work with our customers as we're validating the equipment to make it better real-time. Certainly driving connected vehicles is better for our customers and better for us and our dealers, so that's a key part of it. Each of these slides will show this on the right, what metrics we expect to drive as we execute these priorities. Technology leadership, I'll go very quickly through that one because this is exactly what Selin and Parag are gonna talk about. What I want you to see is how far along we are with autonomy, how quickly we can bring that to market when customers demand it, how much better we're making the stack from a precision standpoint, and how much what we can do with this new CNH Industrial Ventures to be able to bring not just our internal capability but external capability into our stack for the benefits of our customers. You look at the right side, there's a lot of benefits we get when we drive technology. It's customer success, it's sustainability improvements, it's margin expansion. This just makes us better and you'll see a significant focus on the people that are involved and the investments we make going forward. Brand and dealer strength. We've got, I mean, truly historic brands, hundreds of years of benefiting customers and so they can feed their families and build things. I mean, that is the strength of the Case IH, the Case, and the New Holland brands. Really what we need to do is give our dealers better tools because if you remember, most of our customers think the OEM behind is the dealer. The OEM relationship they have is with the dealer. David Meyer, our largest dealer, he's here today. David, I hope you're seeing that we're making a commitment to be better for you and better for your customers. That's our goal. We've got a journey here to go on, whether it's CRM capability, whether it's parts support, whether it's technology insertion. Lots of work to do, but ultimately enhancing our brand and distribution. I like to say we can win in this game. If we're great at product brand and distribution, this is a pretty easy game to win. It's hard to do, but our commitment is there. One of the things that Derek Neilson's gonna talk about is brand governance. You know, a lot of people over the years have said, "Scott, the brands compete with each other too much. Way too much, they compete with each other." Actually, Brad Crews is here. He runs the North American business. Both brands report to him. The same is true in Europe, APAC and South America. The governance we now have to leverage both brands to gain market share against the competition, not gain market share at the expense and lower margin internally, is something that those regional leaders are ensuring happens, and we've got good, strong governance and rightly the right culture to make sure that that happens. You know, operational excellence is dear to my heart. I grew up in a factory environment, worked for a couple of companies, we're quite good at it. You know, this is our picture from our St. Valentin factory in Austria. It's probably as good at lean as any factory that I've been in. What we need to do is take that and spread it across the company. The WCM that we used for a long time gave us the fundamentals of lean manufacturing. What we're gonna do now by evolving that into the CNHi business system is how do we involve our employees more, drive customer-focused Kaizen, and drive significant margin benefits for our customers and margin expansion at the same time. We've got to get improvements in quality, we've got to get improvements in productivity, and that's with the CNHi business system. Again, culture is one of the things. Strategic sourcing is another aspect. We can be much better at extracting value from our supply base, not beating them down for better price, but how do we partner with the best suppliers in the world to get better pricing, but also better innovation, better working capital turns, and you'll see us give significant focus to that. I mean, $550 million of operational improvements is how we drive margin expansion without relying on the market. Again, sustainability, we've got a whole section on it, and Kelly will talk about it. You know, we recently, very, very recently actually, with the support of our board, signed the Science Based Targets initiative. You know what that does is give our commitment to reducing greenhouse gases over time. We've got a couple of years to figure out exactly what our targets are gonna be and how we're gonna commit to it, but it is a, as it says, science-based approach to reducing greenhouse gases. We believe it's right for our business. It'll drive innovation. It'll help us be more prepared for regulation when it comes, and we also believe it's just the right thing to do. We've had a good Scope 1 and 2. We've had a good progress of reducing CO2 emissions, and now we'll use science-based initiatives to drive into Scope 3. I'm really excited about what we're doing with the methane tractor. You know, there was a great article in The Wall Street Journal talking about the investments going in there. We are poised with a product in the market right now to be able to take advantage of that. Certainly, our commitment to driving more women in the workplace, and I'm proud that we've got Selin and Kelly Manley here with us today. Really over time, continuing to advance that to make us a better company. You know, I talked about capital allocation, and Oddone will talk about this in more detail, but I figured if I was the CEO that came in in my first four months, asked the board to spend $2.2 billion on a tech company, I probably ought to talk about capital allocation. We are not gonna spend money on acquisitions ever to buy to get bigger. When we do things like Raven, we can buy to build capability, or we can buy to grow more profitably faster, you know, that's more in line. Our first dollar is gonna be driving organic growth, and we think we get really good and improving returns on that. You know, we are committed to a strong balance sheet. Again, the business model allows us to generate a lot of cash, and I think our ability to manage that and return cash to shareholders over the plan period will be significant. Ultimately, we're not, again, not gonna buy to get bigger, but disciplined M&A will be a key part of our future going forward. This is what the financials look like when, not if, we execute this plan. We think revenue growth is a I don't wanna call it. When you deliver 6% growth, I mean, I know a lot of companies over time, 6% organic growth is quite impressive, especially in these industrial markets, and we're not relying on tailwinds for the market. Really it's the 15% improvement over time in EBIT that we're most proud of. Also what really people wanna see is where is ag going. You know, Derek believes that he can get north of 15%. I think it's 14.5%-15.5%, but either one works. We've got a lot of work to do, a lot of plans in place, the right people, the right team to drive that margin expansion and continue. This is not the stopping point, but this is where we can go in the medium term. Construction, getting up to 5.5%-6.5%, you know, that's a tremendous improvement from where they've been. I think when Stefano comes up, you'll see why we're so confident in that ability to deliver that plan and position it for further growth in the years to come. To wrap up, what should you expect? This slide is meant to really, to focus on what you should expect from the rest of the day. I also think it fits on what you should expect from the future of CNH Industrial. First, I think you're gonna see enhanced capabilities. Enhanced capabilities from the Raven acquisition, from a Sampierana acquisition and construction, giving us much more capability. Also in the people we have here, the discipline we have across the company, much stronger, enhanced capabilities. There's deep experience. Not all of the experience is with CNH Industrial, but deep experience in many industries brought to bear by one team working together to make this company better and deliver for our customers. There's also a solid focus on a solid foundation. I mean, there's a rock solid foundation. We were not fixing things at the bottom. We've got a strong foundation to build on, and I'm quite proud of that. But what I'm perhaps most excited, and again, bringing a bunch of tractors and combines right here to Miami Beach is a great example of it. You'll see bold action. Most of the bold action will be for our customers. That's what we're striving to do. There'll be many other times where we could not make the investment, we could not do the hard work, but we're pretty excited and expect you to see that we are playing to win. Trust that we will move with purpose and pace, our shoulders to the wheel, and I think you're gonna see why I'm so confident in our future when the next six presenters come up. I'll be back for Q&A. Thank you. Ladies and gentlemen, please welcome Chief Digital Officer, Parag Garg. Hi, everybody. Thanks for being here today, and thanks for taking the time to spend with us. Before I jump in, I'd like to spend a little bit of time talking about myself to you guys. I've spent the last 20 years of my career developing tech products in the consumer areas. You've probably used many of these products like Microsoft Windows, Amazon Fire TV, and 5G products from T-Mobile. I am here for a reason. After I became a parent, it became my personal mission to have a positive and tangible impact on the world. When Scott gave me the opportunity to join CNH Industrial 10 months ago, I didn't think about it twice. What really motivates me is to use my tech experience to transform and advance our precision technology offering for our agriculture and construction customers. Today, I'm gonna walk you through those challenges our customers are facing and how we've been working hard to deliver smart iron solutions to solve these challenges. As many of you know, in today's environment and the years to come, our customers will need to produce more while utilizing fewer resources. They have to meet the continuously rising demand for crops with less arable land, fewer workers, decreased irrigation, and a reduced usage of chemicals. Helping our customers address these challenges is our purpose. What I get asked all the time is how. Well, precision technology tackles all these challenges by uniting data analysis and machine automation and is the backbone of CNH Industrial's long-term strategy. CNH Industrial has a long history of building great iron and tools to help farmers throughout that entire farming life cycle. An awesome legacy in which our team is building strong precision technology for every season. Our machine automation is best in class to prepare the soil for planting and to efficiently protect and harvest the crop. You know, I've had a chance to drive a combine myself, and these machines are impressive, and our customers love them. The level of automation in our combines has largely taken the need for a skilled operator out of the equation, which is a higher level of automation than our competition. The benefits show up to our farmers as optimized grain quality, minimized grain loss, reduced operator fatigue, and improved fuel consumption. In our digital services, we have the opportunity to advance the customer experience, and we're delivering solutions that are inspired by customer needs and built for customer use. Our vision for the future is to make precision technology so smart and so easy that the customers can focus on what really matters to them. These are the areas that we are investing in to drive that vision. Following the acquisition of Raven, we are better positioned now more than ever to leapfrog the competition by accelerating in each one of these areas. Our digital service tools help our customers manage their businesses better, whether it's in the office or in the field. We will continuously deliver new advancements in automation, the technology that makes our machines automatically adjust themselves, and autonomy. We are combining automation and digital services to pave the way to full autonomy to take the operator out of the cab so farmers can now run their equipment longer, day or night, and with less labor. We have made tremendous strides since Raven was brought into the CNH Industrial family three months ago. Let me give you guys a quick video in which our employees and customers tell you how enthusiastic they are about what we're doing and show you how these two companies come together to advance the future of autonomy. I have confidence that the winning combination of CNH Industrial and Raven will enable the journey to automation, autonomy, the digital customer experience that we aspire to. I'm very excited about Raven's approach. Very tactical, anticipating problems and wanting to solve them. I know that we have kindred spirits on the CNH Industrial side that have the same commitment. We'll work on those common problems together. Bringing Raven into the CNH Industrial family only helps us do that faster and with a larger team of passionate people to enable success. Imagine trying to drive 15 miles an hour all day, keeping your machine centered in crop rows. VSN completely takes that stress away from the operator. You do the flip side of that. Guys who want to take on more acres, they're custom guys. They say, "Now I can make more money." Not only are you improving the lives of the people that are running it, you're also improving the profit margins of the fields that you go through. That is really exciting. We have the complete pieces to the puzzle, and we are paving the way and will continue to be a market leader in autonomy, solving those fundamental issues that happen throughout the world in ag that are really important. What gets me really excited about the roadmap for Raven is autonomy is the goal. That's the ultimate goal. Raven combines all the pieces together. They are very good at each separate piece. They combine all this together and you have an autonomous project. That's awesome. Our biggest challenge is manpower. We can move that man somewhere else and have him keep moving. That's a huge deal for us. Autonomy to me is gonna make everything so much more efficient. With the OMNiDRIVE, I never missed the cart once. With the guy in there, within a half an hour, we ended up spilling twice. It handles so well. It's unbelievable the way it sinks to the combine. It works very well. Man, that video gets me going. That video gets me super excited about CNH Industrial's future and the amazing technologies we're working on together to serve our customers better. Even as we tackle our current challenges and give our customers the support they require in the present, we are simultaneously building the future. Combating these dual challenges requires an organized strategy that we've structured around these four pillars: continuing our customer obsession, constructing a culture that's tech-first, building on our tech stack, and utilizing our partners' ecosystem with a plug-and-play approach. Let's talk about customer obsession. Solving our customers' challenges requires strong collaboration with customers around the globe, and we've really taken that to heart. During the recent harvest season, I had the opportunity to spend some time with Jordan, a fifth-generation, 50,000-acre farmer. Learning about his pain points really made me appreciate the importance of precision technology and how critical it is to his business and the entire farming community. You know, this starts with proactive engagement. Understanding what their needs are and seeing how we can meet them. Putting our engineers in the cab, in the field to test live code on equipment and understand the experiences we create for our farmers. We've deployed on-farm development now, like bringing our mobile command centers to the farms to be really side by side with our customers across all different types of soil and climate conditions. We're not doing that just here in the U.S. We're starting to do this globally. Performance monitoring, really being diligent about ensuring the products perform the way our customers expect them to perform. When they don't, we make sure that we're looking at those numbers and getting them to where they need to be. Simple by design. We've put simplicity at the heart of our designs, so they're so intuitive, which in turn builds trust and loyalty in our technology. Lastly, a stronger than ever enterprise commitment to make this customer obsession possible, from our board to Scott, our senior leadership team, and throughout the entire organization. Let's talk about the team. We've worked towards aligning our culture to be a customer-first mindset. When I joined CNH Industrial, we were in the midst of a transformation to lead with technology. Precision Technology now is a dedicated team at CNH Industrial that's responsible for product development of precision applications. Starting with the tech-minded leadership, we've been infusing new tech talent by hiring experts in the field of technology and engineering. We've empowered our engineers to enable them to make bold decisions to improve technology for our customers. In 2020, we insourced 5x more tech talent compared to the previous year. We've been working internally to eliminate friction, to streamline our development processes. Raven was a natural fit into the precision technology reorganization, and we're seeing amazing synergy between these two companies already. Lastly, we've changed the way we face every new project. We have a clear vision for what we want our tech to be in the future, and this allows us to think of every new development as a building block of a broader system and not a standalone item. The moment you've been waiting for. Let's talk about the tech stack. We've been building a robust tech stack that offers both flexibility and a plug-and-play architecture, allowing for more partners into the ecosystem. We define our tech stack across five dimensions: architecture, connectivity and data platform, guidance, automation and intelligence, and autonomy. It was an important milestone to bring Raven into the CNH Industrial family as they bridge our autonomous gap and add a tremendous amount of capabilities as a leader in sprayer applications and their expanded suite of guidance technology. This is going to lead to a powerful tech stack that accelerates development and will deliver fully autonomous solutions, expand automation, and develop products to optimize each job on the farm. Since I joined CNH Industrial, we started working on this improved stack, and with the close of Raven, we're already starting to see some of that progress come together. Together, the stack is stronger, and it will allow us to develop more comprehensive solutions for our customers to scale easily. Let's talk about the ecosystem. We take pride in the partnerships that we've developed over the years. We have worked towards giving accessibility to other providers with the goal of enhancing our customers' experience by plugging their solutions into our tech stack to further scale our offerings. It also makes it really easy for us when we go look at acquisitions as well as participating in industry partnership opportunities. This balanced approach of internal development, partnerships, and third-party enablement really makes it easy for us to continue to offer our customers the best in industry solutions. Let's talk about how all these pillars come together. We'll use spraying as an example. Customer problem, spraying without precision is wasteful. Solution, precision spraying is a way to reduce chemical usage. Let me tell you, precision spraying is like a complicated orchestration. We need to know where to spray, control the nozzle flow rate, and adjust the boom height in order to deliver the right amount of product at the right location at the right time while traveling at high speeds through bumpy rows of crop without damaging them. We do this so seamlessly on our new Case IH 50 series sprayer. Let me tell you how. Case IH leads with its ultimate operator experience. Fastest field application speeds, ironclad booms, all in a cab-forward, perfectly balanced air ride suspension that delivers the smoothest ride in the roughest terrain. How does Raven fit in? They deliver the automated boom height leveling system, rate control monitoring, the Hawkeye II individual nozzle control, and the VSN vision steering and guidance. Together, they deliver the best sprayer in the market. Good luck getting one. Farmer response has been so incredible, we're sold out for the year. If any of you want one, get in line now. Let me tell you how Augmenta fits in. Augmenta is one of our strategic investments and partners, and they make a vision system that performs a real-time canopy scan of crop health for CNH capabilities. Augmenta's technology can reduce the application of fertilizers by up to 40% while increasing yield. This all comes together on our tech stack, which enables these seamless partner integrations and workflow management for our customers. Augmenta and CNH Industrial are currently testing this combined system in Texas, and in Q2 of this year, we'll start testing CNH capabilities with customer validation. We're also leveraging our relationship with Augmenta and our open ecosystem to test ways to use their technology to drive sustainability improvements and customer value. This is a perfect example of how our versatile tech stack makes it easy for others to participate in our platforms and expedites the delivery of new products. This is one of many new product options you'll see in the future. In conjunction with our products, CNH Industrial has a goal of providing seamless digital solutions that helps our customers make informed decisions with their data to maximize yield, productivity, and vehicle uptime. This includes researching their equipment needs, buying of equipment or parts, planning out their farming operation based on agronomic data, real-time monitoring of their fleet, and finally, reporting and analytics. When I spent time with Jordan, he told me of how incredible our New Holland automation was, but admitted that he had some concerns on how we were progressing in our digital journey. As an example, a sore point for Jordan and the local dealer was our digital reporting capabilities. In order to service him better, we went back to Jordan's office and spent time discussing and understanding what the gaps were. Not just for him, but for farmers across the world. This led to some very rapid product development where we were able to deliver Jordan a customizable reporting solution in less than 30 days, a process that would have taken months prior. That solution is now being offered to farmers in their core experience at CNH Industrial. As CNH Industrial transforms, Jordan will continue to be one of the many partner. Customer partners we work with to help develop and iterate on the future needs of the business. We are incredibly passionate about our future plans for automation. As previously stated, automation is a key strength for CNH Industrial's tech strategy, already bringing benefits to farmers across the world, across the whole cycle, and helping build a backbone for it to deliver an autonomous future. CNH Industrial has been a consistent leader in the field for decades, providing more and more efficiency and productivity for our customers. We're gonna continue to build on that further and to increase our lead across the portfolio. We are leaders in smart tillage. With Soil Command, farmers increase productivity, reduce soil erosion, all while saving on fuel consumption, which then creates the ideal seedbed for plants to thrive. In addition, we're testing future forward solutions to be ready for the market, such as enhancing our vehicle-to-vehicle communications, so machines don't overlap work areas, improving efficiency and paving the way to autonomy. Finally, I wanna talk to you about our autonomy journey. Our rich history in this field started back in 1995, driving significant advancements along the way. In 2016, we were the first to put out a bold vision for what we thought the future of autonomy would look like, and that journey is now being accelerated exponentially. With Raven on board, we've been commercializing autonomous solutions since 2020 with the OMNiPOWER platform. We had our first sales of AutoCart. We started doing testing, customer testing with Auto-Tillage. Together, we're testing Auto-Spread and Auto-Spray on our sprayer platforms, and then pushing on to autonomous solutions across our entire vehicle platforms. As you can see, this has really jumpstarted us in both terms of solutions and market and deep technical acumen for the journey ahead across the entire tech stack. I'm confident that we have all the right ingredients and tools necessary to be leaders in autonomy and help our customers throughout the entire farming cycle. I opened my presentation by discussing how I wanted to make a tangible and positive impact on the world. We know and understand what our farmers need, and I'm really excited about how our team, our technology, and our tech stack come together and make our iron a great way to win in the marketplace. This is gonna be a fantastic ride, and thank you. Ladies and gentlemen, please welcome President of Agriculture, Derek Neilson. Good afternoon, ladies and gentlemen. My name is Derek Neilson, and I have the privilege of leading CNH Industrial's agricultural business. I've been with CNH Industrial for over 20 years, and the constant challenge of supporting our customers and our dealers in a dynamic industry that never stands still keeps me as motivated today as when I first joined this great company. Today, I'm going to talk to you about the rich history of our segment and our plans to shape the future of agriculture in a rapidly changing world. Why am I so proud to lead this business and such a talented team? I think this slide helps explain why. To start with, we have two tremendously strong global brands, Case IH and New Holland, which have an incredible heritage spanning 180 years and seven generations of loyal customers. This is enhanced by a well-balanced and geographical distribution, which includes 200 countries and more than 6,500 sales and service points. Our strong dealer network enables us to foster a trusted partnership with our customers, elevate our brands, and collect and analyze the local data which we can then use to improve both our businesses. Our global customer base can count on the support of 29 manufacturing facilities and 18 research and development centers across the world. With our regional presence, we are where our customers are, which means we can best serve them. Our relentless focus is paying off with revenue growth outpacing our peers by nearly 50% and hitting new profit levels, thanks to price realization, mix improvement, and market share gains. Our record results in 2021 also underscore our commitment to operational excellence as we successfully navigate through significant supply chain challenges. To maintain this momentum, we are continually expanding our product range, both organically by strengthening our positioning in key profit pools and inorganically through partnerships such as Monarch and Bennamann, plus the acquisition of Raven, who you heard of earlier, which I'll talk a little later in the presentation. As you've heard today, our world is changing rapidly, and this presents a unique challenge for our farmers simply to produce more with less. Demand is growing while input costs are rising. At the same time, labor and resources are becoming more and more scarce. As a result, our farmers have a clear mandate to increase productivity that will be driven by technology advancements through the entire value chain. This goes beyond the farmer. It's about us, CNH Industrial, committing to sustainability where precision technology enables farmers to reduce fertilizer, pesticides, water usage, supporting a cleaner world, and alternative propulsion increases the sustainability of the entire farming system. We believe these developments are foundational to a healthier and ultimately more profitable farming ecosystem. All of this is happening in a historic moment where supply chain complexities are adding new pressures on the entire industry, the initial impact felt by ourselves, but ultimately impacting end users. As our customers' needs change, we are investing in our iron and our technology, roughly twice the amount we're used to help them navigate the transition and enhance our partnership with our customers. In short, we are investing to gain market share, to drive up margins, and to make our business less exposed to the agricultural cycle. We are over-indexing investments in new technology, both in terms of precision and ultimate propulsion and alternative propulsion, but we are not forgetting our gray iron, ensuring our customers are safe and our machines meet their demanding quality and reliability requirements, which will always be fundamental to our mission. This will bring us to an improved return on invested capital during the planned period through a balanced one-to-one investment ratio between tech and iron. To make sure everything I just said becomes reality, we'll continue upgrading and enhancing our manufacturing facilities, so we can safely and efficiently build the future of agriculture. Our investments in the ag segment are well-aligned with the strategic priorities Scott discussed and presented to you earlier. We are now a more focused company, allowing us to sharpen our strategy and further leverage our synergies between our agriculture and construction segments. Our strategy is anchored on a singular focus on customer centricity, which you'll hear throughout all the presentations today. We have a structured strategic plan built around our customer where brand, product, and distribution remain key to our success. I will take the opportunity to walk you through these pillars on the next few slides. As I said, everything we do stems from our customer-centric approach, from iron to our innovation, so let me spend a couple of moments discussing how we are partnering with our customers across the globe, ultimately to feed the world. Our customer base is extremely diverse in terms of farm type, farm size, and technology requirements. Understanding and meeting the differing needs is what drives customer-inspired innovation. Our geographical diversity facilitates this, enabling our two primary global brands to deliver a fully competitive portfolio to a truly broad range of farmers. All of this allows us to gain a deep understanding of how farms work and how their needs are evolving. To this, we are building differentiated, customer-inspired agricultural equipment and services to maximize their business, and at the same time, further reinforce and expand our brand's legacy. Seven generations, yes, seven generations of farmers have been loyal to our brands, and we are building on this tremendous heritage by further optimizing our multi-brand strategy. Our brand portfolio leverages two distinct global brands, similar in size. We're focusing on different customer segments, which are then complemented by regional specific brands with focused product offerings, all of this to provide the customer exactly what they need in their respective markets. Across all of this, we provide access to our technology brands, both as factory fit and also as aftermarket kits. Geographic diversification is one of our greatest strengths, and while the revenue contribution from our two global brands is relatively equal, they are strongly characterized by differences in their respective segments and geographies. Case IH, for example, is focused on cash crop, especially on large farms, hence its greater presence here in North America and also in markets such as Australia, where cash crop and large farms are more prevalent. New Holland, however, targets small grain, hay and forage, and livestock customers, and is more tailored to small to mid-size farms. This differentiation makes it the preferred partner in Europe and Asia-Pacific, where the average farm size is smaller. In the remaining areas of the world, it really boils down to the country's specific needs. Where farmers look for powerful and highly productive applications, they gravitate to Case IH. Where farmers feel a more tailored approach is needed, they tend to refer to New Holland. Finally, it's important to note our historical leadership in specialty crops in which brand differentiation is even more evident. Case IH is the preferred partner for sugarcane customers and New Holland for vineyards and orchards across all regions. As I mentioned, great iron and great technology are critical to maintaining our strong partnership with our dealers and customers. Last year, we launched some 40 products, further improving our portfolio, and we have an impressive 150 more launches planned over the next three years. This slide only includes a selection of the most important next generation and upgrades in our product roadmap, and as you can see, we're intensifying our development on automation and autonomous features, and at the same time, bringing in all the innovation which Parag has shown to you earlier. We also have relevant releases for alternative propulsion, which Selin will give you more details later on. Each of these 150 product launches will bring additional value to farmers, dealers, and ultimately to ourselves. This means top line and bottom line incremental growth. I'd love to go through all of the new product launches, but in the interest of time and not boring you too much, I'll focus on three examples. Tractors remain the backbone of our portfolio. We have been building them for over 100 years, racking up many, many industry firsts along the way. Our existing lineup is robust, meaning every type and size of farm can find the right CNH Industrial tractor from narrow vineyards all the way to expansive prairie operations. Our latest advancements are making farming experience even more better and progressive. The new generation tractor you see on the screen behind me, launched last year, not only brings outstanding performance, but also offers the quietest cabin segment combined with powerful climate control and exceptional visibility. Now, if these seem like trivial improvements, remember that a farmer can spend more than 12 straight hours in these machines, and if they can operate them more comfortably for longer, this benefits their wellbeing and benefits the farm's overall productivity. None of this matters if the tractor won't run, if it needs refueling or needs repair. This latest tractor can stay in the field longer than any other before refueling, and time between maintenance is 50% longer than our peers. All of this happens with the tractor being fully connected to other machines, to the farm office, and to third-party applications. If tractors are the backbone of CNH Industrial, sprayers represent a key opportunity for growth where our know-how is further enhanced by Raven. Parag already gave you some of the technical aspects of the new product, but let me try to give you an idea how vital this is for our customers. New performance levels allow our sprayer to cover 20% more acres per day and avoid respraying the same area. The precision technology is a crucial benefit for the environment by reducing nitrogen usage by 9%, use of plant growth regulators by 20% and herbicides by fully 15%. The result for farmers will be to reduce their input costs, minimize damage to their crop, and allow them to be more efficient in a key area of the agricultural cycle. Again, all of this is done without conceding anything in terms of ergonomics or smoothness of ride. Combines represent a core strength in our portfolio today. We are incredibly proud of being global number one in terms of sales. We intend to continue to build on 20 years of industry firsts and numerous awards that have shaped how today's combines function. An automated combine increases productivity by fully 30%-40%. It also preserves grain quality and reduces impurities, which help attain higher grain prices. Additionally, automated combines protect the soil to maximize this season's production, while better preparing the ground for higher yields in the seasons to come. It also allows a semi-skilled operator to fully optimize the output of this critical piece of farming equipment. We will launch these automated features across all of our combine product range, and we are already well advanced in the development of the next iteration of automation. To successfully complement our brands and our products, it's essential we continue to invest and develop our dealer network. Enhancing the network, in particular through digital capabilities, is one of the key pillars of our strategic plan and significantly contributes to improving customer satisfaction. This includes an improvement in front end, connectivity, and back end tools, supporting a fully digital customer experience from sales all the way through to servicing. This will enable our dealers and our teams to improve the overall service level by avoiding, reducing machine downtime. The need for increased productivity opens up new opportunities also for additional service revenues, both through retrofitting to older machines and creating a more captive parts and service business. Until now, we have been more focused on our customer, but strong internal operations enable us to work better and smarter for our customers. We have been actively implementing a number of initiatives to improve our operations, which, as we move beyond the supply chain headwinds, will drive increased efficiency across all of our business. Our execution as we navigated these recent supply chain challenges underscores our ability to find smart solutions to refine our operations, while also taking the opportunity to simplify our product lineup. We have launched an ambitious strategic sourcing plan where our company operates as one team through purchasing, engineering, and manufacturing to engage with the best suppliers for long-term win-win solutions. On top of that, the newly implemented CNH Industrial business system will expand upon our history of lean world-class manufacturing, leading to simpler processes, improved quality, reduced bureaucracy, and better communication through our entire business. We are supremely confident that all of these projects will contribute to solid margin expansion during the plan period in excess of $500 million. As I mentioned earlier, our commitment to sustainability will remain, and this will be focused on two pillars, namely biofuels and electrification, both of which Kelly and Selin will show you in more detail a little later. Our commitment to sustainability is indeed not limited to targeting strong reductions in Scope 1 and 2 greenhouse gas emissions, but we believe we can really propel our ecosystem to drive a significant reduction in Scope 3 and finally target a net zero carbon environment. Why does sustainability really matter? It is fundamentally important to our farmers in a world where their end customers are demanding even more and more sustainable food products. We are also ensuring that we stay ahead of ever-demanding emission regulations. This also benefits our shareholders by further solidifying CNH Industrial's long-standing excellence in sustainability. On the biofuel side, we already launched last year the most sustainable tractor in our market. Now we will expand the same technology and approach progressively to more and more products in our portfolio. We are also well advanced with the Bennamann Biofuels circular economy solution, which you will see in the market very, very soon. Our electrification journey within our strategy is three simple steps: light electrification, such as eImplements, medium electrification, where hybrid solutions will pave the way, and for the final step, we will bring to market fully electric tractors utilizing Monarch technology, which will be launched within the plan horizon. As I said, Selin will take you through these in much more detail in the later presentation. Now let's look at the financials when we bring it all together. We plan to increase revenues by 16% over the next three years, coming from a combination of content, product launches, and pricing. It will be profitable growth as the additional value we deliver to customers translates into higher margins versus traditional products. Combined with our operational efficiency, this will allow us to improve gross margin, fully fund a 50% increase in R&D, and deliver adjusted EBIT expansion in excess of 300 basis points by 2024. In summary, our balanced and extensive footprint puts us close to farmers, even in the most remote locations. We will use this proximity to continue to understand our customers' needs, and this in turn will drive our significant investment to bring them great iron and the great technology they deserve. Over the next three years, we will enhance our already formidable portfolio with a vast array of new products that will fulfill the mandate for increased farm productivity, which we will then sell through an increasingly digitalized and well-trained dealer network. Industry-leading advances in alternative propulsion will bolster our firm commitment to maintain our lead in sustainability. Finally, as a historical pioneer in agriculture, dedicated to serving our customers, we will continue to reach new heights and at the same time, breaking new ground. I thank you for your attention during the presentation. With that, I will invite you all to take a 20-minute break, at which time we will resume proceedings with my colleague for Construction Equipment, Stefano Pampalone. Thank you very much for your time. Ladies and gentlemen, please welcome President of Construction, Stefano Pampalone. Ladies and gentlemen, good afternoon. I've been with CNH Industrial for most of my career in different assignments across the world. This is an exciting time for the construction segment, and I'm delighted to share with you today what we've been working on in the last two years, from product development to enhancing our operations, all to position the business for profitable growth. CNH Industrial's construction equipment segment has a long, storied history. We are a global business with an established presence in all geographies. Our widespread network of dealers and importers, manufacturing plants, and research and development centers mean we are close to our customers wherever they are. Our robust product portfolio, ranging from mini excavators to large wheel loaders, is sold under three brands: Case, New Holland Construction, and the newcomer, Eurocomach from the Sampierana acquisition. Each has a strong heritage and positioning within its respective geography, serving customers with a tailored product offering. Over the past two years, we have taken a number of actions to position the construction segment for profitable growth. These efforts have resulted in doubling the EBIT during this time. This was constrained by headwinds spurred by the COVID-19 pandemic and the resulting supply chain disruptions. We've made structural changes throughout the organization. First, we implemented the regional structure to be closer to our dealers and customers. We enhanced research and development capabilities with the addition of new talent and competence. We improved the quality of our products and prepared our manufacturing system to match the expected demand. We optimized our manufacturing footprint, creating efficiencies, and this constitutes a very strong foundation to drive profitable growth in the coming years. With that strong foundation in place, we are now focused on accelerating the renewal of our product offering. This started with the launch of new wheel loaders and the industry's biggest compact track loader, both with advanced digital features and leading-edge connectivity systems. Additionally, we've expanded our portfolio of mini and midi excavators through the Sampierana acquisition. We are now in the process of launching the Minotaur, a groundbreaking new product that blends the versatility of a large compact track loader with the power of a dozer. We have the biggest growth opportunities in North and South America. In Asia-Pacific, we are strengthening our presence in selected markets such as India, where our manufacturing footprint and supply base is very well established. We are stronger in Europe, thanks to the Sampierana acquisition, and we have created specific value proposition for our residential, non-residential, and dealer rental segments, where we already have a strong position and there is growing demand. Digitalization is radically evolving in our industry. This provides us with the opportunity to offer advanced connected services driven by data collection. All of this enables our customers to increase productivity, safety, and efficiency. We are well-positioned in this changing environment. As I mentioned, the construction industry is undergoing massive transformation, driven by a number of global trends. First and foremost, significant infrastructure investments are underway, driven in large part by the recent infrastructure bill in the U.S., the European Union's long-term budget coupled with NextGenerationEU, and similar programs in other parts of the world. New technologies are being launched at stunning pace, addressing the need for safety, efficiency, and productivity, as well as the lack of skilled personnel. Digitalization is impacting the competitive environment through connectivity, big data, Internet of Things, mobile interfaces, and machine automation. Air quality regulation and noise control are driving the development of alternative forms of propulsion and actuation of the machines. Every player in our industry along the supply chain is moving toward better, more sustainable operations and products. Selin and Kelly will talk more about that. Barriers will fall, new players will emerge. These trends will shape a new construction equipment industry across the world. We welcome the challenge. With almost half of our sales and a significant portion of our margins driven from North America, the infrastructure spending in the U.S. positions us well for growth over the next three to four years. In addition, we are also expecting robust demand to continue in South America. Specifically, in Brazil, we are among the top five players with a long history and a well-established network of dealers. In Europe, the market has yet to reach its historical peak, and we are working to be in a position to meet the expected demand resulting from the stimulus package. Sampierana's fitting product offering will further assist us in achieving this. Our limited exposure in China protects us from the adverse impact of the decline in demand. In the rest of the world, we see opportunities in a number of markets, among which India, Turkey, South Africa. We are geographically well-positioned to capture continued profitable growth in the coming years, and we execute on CNH Industrial strategic priorities. Let's see how we will drive growth by delivering value to our customers through reliable, integrated, and sustainable solutions. It starts with our customers. As you've heard from Scott, Parag, and Derek, partnering with our customers around the world is our top priority. We are with them at every step of the way, from advice during the purchasing process through the life of every machine, with aftermarket sales and service, and beyond. We are designing our machines to elevate the operator's experience and improve overall safety. Digital and automation solution aim to increase safety, productivity, uptime, and profitability. Specifically, machine control solution reduce operator fatigue by eliminating the need for joystick movements. The person detection system alerts operators to people or vehicles approaching machines. Uptime is promoted through planned maintenance contracts, proactive dealer support with telematics alerts, and other services such as oil sampling to detect and predict abnormal functioning. Fleet Management, SiteWatch, enables better machine utilization by identifying and reducing idle time on machines. Each of our customers has different requirements which are continuously evolving, so we are enhancing a wider service and product offering with different price points, levels of investments, and full access to a wide variety of financial services through our CNH Industrial Capital. Scott said it at the beginning of this presentation, we have great iron, and we are committed to maintaining that. Our product portfolio is central to our growth. By 2024, we will have completed the renewal of all the most important ranges, focusing on the uptime, the productivity, and ergonomics critical for our customers. This includes the totality of our heavy line, which will be upgraded with advanced digitalization features, such as cycle automation and a human machine interface. By the end of 2023, we will launch the next generation of small and medium wheel loaders in Europe and North America, as well as the next generation of crawler excavators planned to be launched in Europe in March, and in Q3 2022 in North America. Road building customers will benefit from new electro-hydraulic controls on graders and dozers, enabling machine control automation capabilities. For our compact line, we firmly believe there is an electric future, and for each of the major product lines, we are developing electric versions of selected models. In addition, we are focusing on developing enhanced services and features that can be applicable throughout the range. With the acquisition of Sampierana, we have bought in a competitive range of mini and midi excavators built through a cost-effective supply chain, rooted in a competitive cost country, and a sound Eurocomach business, significantly strengthening our presence in Europe. Sampierana has excellent and agile R&D capabilities, which will support the design of an innovative range of electric mini excavators. One of them is here today on display outside this building in the Case livery. This acquisition is specifically important for the European market, as mini excavators represent the main product. We are now fully committed to increasing the production capacity in order to integrate Sampierana into our existing mini and midi excavator offering, and we will quadruple Sampierana volumes by 2023. Marrying technology leadership with our great iron will drive profitable growth. For us, this means digitalization and automation, which are key to delivering increased productivity and uptime on today's evolving job sites. Thanks to the scale and quality of CNH Industrial competencies, investments, and assets, we are able to achieve significant progress in several areas of digital and automation. The data received from connected machines are used in many ways, including in the design for future product features and digital services, promoting uptime and productivity for our customers through our dealers. Examples include proactive alerts, predictive maintenance, and remote support that are available today on some of our heavy-line products just launched. We are also in the process of scaling up these services, and will be launching them on additional product lines later this year. The enablers are common across the two segments. Machine automation helps improve safety and productivity for our customers. We are working to expand our existing 2D and 3D machine control and guidance solution, and launch new functionality for added safety and productivity, and this will be progressively rolled out across our product lines over the next few years. To enhance the customer experience, our goal is to digitize the entire workflow on the job site, from initial site survey all the way through to the final as-built map. If we look at electrification, the worldwide market for electric vehicles in construction is expected to grow steadily, progressively overcoming challenges. We are introducing electric solution for selected models in our compact line starting this year with the launch of the new electric mini excavator, followed by backhoe loaders, compact wheel loaders, and compact track loaders in the years to come. The experience of an electric machine requires a different approach on the vehicle's overall utilization. It is not just about propulsion. This is the area where we are focusing our efforts, and is strictly linked to a better knowledge and understanding of evolving customer needs. Our dealers are our key assets and our brand ambassadors. They play a crucial role in serving our customers and earning their loyalty. They know the customers' evolving needs and maintain the daily relationship with them, and it is through their knowledge and professional support that we're able to truly satisfy our customer needs. Our strength lies in our capillary network that is constantly evolving with the market. We are working hard to elevate the digital service offerings with our distributor partners and create new value, providing an enhanced customer experience, integrating, for example, dealer management system and our parts platforms. We plan further integration of system to offer new digital tools. We are one of the leaders in compact construction equipment for agriculture and landscape application. The Ag channel, North America and Europe, is a unique asset for us, offering opportunities for further growth. In an industry like ours, one of the biggest challenges has always been and will always be production efficiency. Our smart factory models, initiatives to reduce complexity, and modular approach in product development together will build a highly competitive industrial system. Smart factories are the foundation elements of a digital supply chain, capable of synchronizing product demand with customer satisfaction within the expected timeline. We are in the process of an in-depth review of our current supply chain, moving production and sourcing to where we can obtain the levels of efficiency and productivity we are looking for. We intend to make the most of the unique assets of our commonalities and synergy with the agricultural segment in terms of plants, processes, systems, and suppliers. We are doing all this while always keeping quality for our customers at the forefront, which has been core to our transformation journey and structurally embedded in everything we do. The modular approach in product development combines the need to simplify our processes with the preservation of the offering required by our customers. Our efforts over the last two years have positioned us well to pursue profitable growth. Through the execution of our strategic initiatives, together with an attractive demand outlook and strong plan to significantly increase the technology content of our offering, we have built the opportunity to double our current profitability. Our strategy will sustain the achievement of sales ranging from $3.7 billion-$4.5 billion by 2024, and a 5.5%-6.5% adjusted EBIT margin, driven primarily by new technologies, the addition of Sampierana, and synergies with the agricultural segment. We are confident we have put in place the building blocks necessary to reach these goals. I want to leave here today understanding you, understanding we have a clear roadmap to profitable growth. We have built on our strong foundation by focusing on geographies and end markets where we see the biggest opportunities, benefiting from the addition of Sampierana's products and technology, further enhancing our commercial and operational excellence through synergies with the agricultural segment, and advancing our strong partnerships. Given our strong running start, we have rebuilt a solid foundation for the construction segment to deliver long-term success. Thank you very much. Ladies and gentlemen, please welcome Vice President of Advanced Technologies and Innovations, Selin Tur. Thank you very much for being with us today. I joined CNH Industrial about four years ago as the Director of Electrified Powertrain Engineering at FPT Industrial. Prior to joining the company, I spent over 20 years developing cutting-edge electric and electrified powertrain technologies and their components, including battery packs and propulsion systems. I also worked on their integration into passenger and racing cars, such as in FIA, Formula One, and Formula E, although now I am focusing on much larger and slower vehicles. It is my privilege to talk to you about our electrification and alternative fuel strategy today. Our customers are the driving force behind our journey towards electrification and alternative fuels. Sustainability is something our customers, their customers, and the planet are demanding. Businesses and their stakeholders would like to reduce their carbon footprint and ultimately reach net zero emissions on a global scale. This is true for our customers and for CNH Industrial as a company. This is not only about sustainability. Next generation products deliver a better user experience with reduced noise, better traction, driving, and working features. Controls and automation are more responsive and intuitive. Data is available all the time, everywhere. These benefits open up new use cases in specific environments, enabling additional market opportunities beyond current applications. For example, the use of compact construction equipment indoors and tractors in greenhouses. Although this improves our customers' financial returns, productivity is enhanced with higher efficiency and more responsive controls. Lower operating costs are a result of reduced fuel consumption and fewer maintenance and services requirements. Lastly, users are prepared to comply with the emerging regulations, which are either being introduced or planned in line with Kyoto Protocol, Paris Agreement, COP26 to name a few. Regulations are tightening, and we are getting ready for when they are implemented. The world is changing, and we have products and a product plan for the realities of this new world. Let me show you some world-class products that demonstrate the best of electrification and alternative fuels that CNH Industrial already offers to our customers around the world. Our 100% biomethane tractor was awarded Sustainable Tractor of the Year for 2022. It not only brings net zero impact, but significantly reduces pollutants while having a considerable impact on operating costs and cuts noise by half. We unveiled the industry's first fully electric backhoe loader back at CONEXPO in 2020. Again, it is not only about zero emissions, it is about delivering optimal performance, minimizing job site losses, noise, lowering daily operating costs and maintenance. Electrification is also enabling new ways of working as electric motors have a start-stop feature like in cars, meaning that when the machine is not operating, it shuts down completely and makes zero noise. This gives tremendous value to our construction workers as they used to manually shut down the machine and stop working to be able to communicate with their coworkers. Now they can continue working and communicate at the same time. In agriculture and construction, electrification involves far more than propulsion. Our challenge is improving total vehicle efficiency. In many applications, other functions use more energy than vehicle propulsion. For example, tractors deliver power to implements through power take-offs, and construction equipment delivers powerful machine working functions through hydraulic actuators. Electrification simplifies all this. In agriculture, we successfully introduced e-Source, electrifying a sprayer attached to a traditional tractor. By just supplying electricity to the sprayer through e-Source, we can significantly reduce fuel consumption, emissions, and noise. In construction, we were able to get the benefits of zero emissions and dramatically reduce noise by containing the size of the excavator so that it now fits through domestic doors, opening up new opportunities for construction workers in indoor applications. It is not only about fuel and emissions. Replacing rigid mechanical linkage between the machine and the equipment with a simple cable provides higher maneuverability and better safety. Also, implements and attachments become more reactive compared to hydraulic versions with enhanced automation and sensor integration. Data becomes fully available for applications such as predictive maintenance. As CNH Industrial, we are tackling these emerging trends by capitalizing on our technology and innovation roadmap to become the leader in electrification and alternative fuels. Our mission will be accomplished through a laser-focused three-pillar strategy, alternative fuels, electrification in agriculture, and construction. Being at the forefront of alternative propulsion is something that has been critical for our company since the clean energy leader strategy started back in 2006. Since then, we have continuously demonstrated clean energy solutions and proof of concepts, exploring the limits of the technology and learning about the viability of market introduction. These include a concept fuel cell hydrogen electric tractor in 2009, and our working prototype methane tractor in 2013, and a hybrid tractor concept in 2019. Over time, we have optimized these technologies and continually raised the bar with concepts that were way ahead of their time. In 2019 and 2020, we presented two industry-first concepts. A methane-powered construction vehicle, and an electrified backhoe loader respectively. In 2021, we became the first company to go to market with a 100% biomethane tractor, and have showcased our concept power pack, e-Source, to connect electric implements. We have strong foundation and a clear path to sustain our leadership position in clean energy technologies, and to do this, we continue to advance our tech roadmap. In particular, we are pursuing our strategy for electrification and alternative fuels through both organic and inorganic means. With regards to alternative fuels, CNH Industrial is working with a UK-based alternative fuels tech company, Bennamann, our biomethane production through circular fuel economy and in natural gas tanks. This complements the strong technology know-how built over the years between CNH Industrial and FPT, a partnership that will continue to grow into the future. On the electrification front, we have some of the key capabilities in-house, with Sampierana strengthening our ability to electrify the mini and compact range of construction equipment. Such strengths are further boosted by FPT's capabilities in batteries and e-powertrain, and our investment in Monarch, which brings skills across all areas. We will also continue to collaborate with FPT Industrial on various alternative fuels and electrification innovation programs, which we believe will be applied to our future products. What should you expect from our plan? In the area of alternative fuels, we are an industry leader delivering top solutions. We launched the world's first production 100% biomethane tractor in 2021, and we will complete the global rollout by 2024. Methane tractors significantly reduce well-to-wheel carbon emissions while enabling circular economy, achieving net zero or negative carbon emissions when powered with biomethane produced from waste, such as manure, which in turn could enable energy-independent farms. We intend to further expand our product portfolio with liquid natural gas solutions, aiming at extending autonomy and power capacity. With liquid natural gas, we will more than double the autonomy of our current methane products within the same packaging. While we believe methane is a perfect fit technology for Ag, we also remain committed to our other alternative fuel innovation programs. As a source of propulsion for our biomethane tractor and other alternative fuel vehicles, we are partnering with Bennamann on biogas recovery. When integrated with the circular economy cycle, Bennamann solutions, coupled with our biofuel offering, enable a circular economy model for our farmers, capturing fugitive emissions and delivering a local clean energy revolution. Indeed, agricultural waste can be used to generate electricity, heat, and fuel for vehicles and machinery, all while reducing emissions and opening up new revenue streams. This is already a reality on our New Holland smart farm in Italy. Biogas is produced, stocked, and used on the farm. This is taking out the complexities of a broader infrastructure, allowing farms to be carbon neutral and energy independent. Moving to electrification, we are accelerating the implementation of our strategy from three different angles, as highlighted by Derek. Implement electrification enables us to integrate capabilities to deliver even better precision, while potentially decoupling the machine and the implements. Driveline hybridization increases the power-to-weight ratio of our tractors, helping our customers achieve even higher productivity. Full electric solutions in agriculture eliminate emissions and increase efficiency. e-Source will be the power pack for our electric implements. It has been proven and production-ready since 2021. Right now, we have various eImplements, such as the sprayer in the works. We are also developing our new generation hybrid tractor within the planned horizon. It will improve the power density, enhance dynamic performance, providing power boost, and achieve better traction control. This results in increased productivity, controlling the ground speed independently and responding to instantaneous torque demands during field activities. With regards to full electrification, we will launch the first small battery electric tractor, leveraging our strategic partnership with Monarch. Following that, we will continue to expand our BEV range. We believe we are well-positioned to deliver a range of electric farming products that satisfy our customers' sustainability targets and improve their productivity. We are moving forward in this direction, taking into account the technical constraints the industry has on battery energy density and battery costs in electrifying larger vehicles in the future. We are excited about electrification and construction, and we plan to leverage our Sampierana acquisition to accelerate our electric mini excavator range, as well as expand our electric construction offering. Benefits of electrification of construction equipment are clear. It reduces operational costs, delivers significant reduction in noise and emissions, which is critical to urban construction, and opens up new business opportunities in indoor applications. As Stefano's construction equipment strategy, we will build on our recent success to introduce the new mini excavator platform in 2022, and enlarge our product portfolio with new compact EV products. CNH Industrial has built a strong foundation for the electrification of construction segment to deliver long-term success for our customers. To summarize, CNH Industrial is at the beginning of its electrification and alternative fuels journey, but we are already well-positioned for a net zero carbon future. We have aligned our mission with that of our customers to produce more with less in response to growing focus on sustainability. We are building on a long and compelling history of innovation in clean energy technologies. We will leverage our in-house capabilities boosted by recent acquisitions and our partners' ecosystem. CNH Industrial has the opportunity and obligation to lead the industry in these areas. Thank you very much. Ladies and gentlemen, please welcome Chief Diversity and Inclusion, Sustainability and Transformation Officer, Kelly Manley. Good afternoon. I am so happy to be here. I joined CNH Industrial last year in this capacity, and I have nearly 20 years of experience driving change in large industrial companies. As I stepped into this role, it was immediately clear that sustainability has been an integral part of CNH Industrial's strategy. For the new CNH Industrial, sustainability will continue to drive the decisions we make and the priorities we set for our future. This is absolutely necessary. Since by now, we have all realized that sustainability is vital to the future of our planet, and therefore ensuring our facilities and products are sustainable creates value for the world, our customers, both internal and external stakeholders, and our business. Our work to help address climate change has earned us recognition as one of the world's leaders in sustainability, and we are determined to advance this cause as a focused agriculture and construction business. Our industry has a significant impact on the environment and greenhouse gas emissions, and we see value potential in circular economy and creating an ecological transition on what is delivered as solutions to our customers and society. This is why we believe it is a natural move to commit to the Science Based Targets initiatives. Internally, we see discipline and governance across our facilities and sites worldwide as key enablers to ensure we deliver to all of our stakeholders in these endeavors. CNH Industrial has a strong record of sustainability recognitions. In 2021, we ranked in the top 1% on the annual EcoVadis sustainability assessment, receiving a Platinum Medal certification for one of the foremost providers of business sustainability ratings. For the 11th consecutive year, we were a top score in the Dow Jones Sustainability World Index in machinery and electrical equipment. The Gold Medal certification we received was the only one awarded in our industry. We were one of 56 firms that received CDP's double A score out of a global pool of over 13,000 disclosing companies. Indeed, we made it into both the CDP Climate Change A List and the CDP Water Security A List. For the 8th straight year, we received a AA A rating in the MSCI ESG Ratings assessment. These awards testify to our commitment to address the world's biggest sustainability challenges, setting us apart from our peers. For the new CNH Industrial, we created a strategy centered around these four areas, a natural next step that aligns with our existing priorities. As our company's history is built on such a strong foundation of creating sustainable solutions as the way we do business, it made sense for us to continue on this path. This, coupled with an in-depth materiality analysis, it was reinforced that CO₂ emissions and safety are the most material aspects internally and for our stakeholders. Through our commitment to diversity, equity, and inclusion and to our local communities, these all made sense, recognizing that they are very much intertwined. That being said, this framework is designed to focus investment, drive performance, and create long-term value for our company well into the future. Delivering against these areas remains in line with our stakeholders' expectations, positioning our company and our employees to have a positive impact on our planet, enabling us to win the war for talent and delivering on our key results. Now, as Scott and I have already mentioned, we are committed to taking deliberate actions to reduce our carbon footprint. We must all collectively deliver outcomes that limit the planet's temperature increase to 1.5°C above pre-industrial levels and achieve carbon neutrality by 2050, as stated by the Paris Agreement. To ensure we deliver against what we set out to achieve, we see committing to science-based targets initiatives as a way to develop reduction targets that are certified with a sound reduction strategy. This commitment, recognized as the gold standard for environmental impact, furthers our sustained efforts in this field. As you can see, we are enhancing targets on Scope 1 and 2 emissions of our manufacturing plants and on renewable electricity in line with our previously stated sustainability plans. CNH Industrial is not new at pursuing every effort to reduce its carbon footprint. As an example, between 2020 and 2021, five of our plants around the world were equipped with the PV solar panels, and all of them are now active. The ambition is to get to a total of nine active plants with PV installation by 2024 and to 100% of our plants worldwide by 2040. By working in partnership with our employees, we will continue to identify measures which will further our energy transition. To build upon the pillar of increased circularity and eco-efficiency, we will accelerate our efforts on product, water, and waste optimization. Our biomethane tractor is a perfect example of our commitment to innovation and we will lead with sustainable product design, as it enables a circular economy that removes carbon from the atmosphere. By 2024, we will design all new products according to these criteria. By 2030, new CNH Industrial equipment will be 90% recyclable. This enables our customers the ability to have a direct and personal influence on sustainability and doing it profitably. Our employees have a direct impact on the sustainability as well. Through the products that they produce and their usage by our end customers, our people do meaningful work. Imagine what that means to them and what it is as a motivating factor in retaining a highly skilled workforce. As Parag's presentation clearly demonstrated, our precision technology solutions strongly contribute to circularity and eco-efficiency. Boosting farm productivity and hence profitability gives farmers added incentive to adopt precision technologies with commensurate benefit to the environment. The impact to these enabling technologies will be quantifiable on direct outcomes for our customers, such as productivity, fertilizer use, herbicides, fossil fuels, and water. In addition, we also see indirect outcomes such as improved water quality and soil health. There was an independent study conducted by the Association of Equipment Manufacturers and conjoining groups, and they shared that productivity has increased by an estimated 4% as a result of precision Ag adoption and has the potential to further increase 6% with broader adoption. As a result, cultivating an estimated 10 million acres of cropland was avoided due to more efficient use of existing land. This is an area equivalent to 4.5 Yellowstone National Parks. There is potential to create more efficient use of existing land. We are confident these benefits are tangible and measurable, so we are actively translating data from our connected machines into objective performance, taking the lead to prove the measurable outcomes. Emphasizing inclusion, equity, and engagement is another strategic area. In this regard, CNH Industrial is building an attractive workplace within our industry by acting on multiple fronts. We aspire to continually reflect the societies and communities where employees live, work, and where we do business all around the world. Our company purpose positions us to attract the best talent now and in the future, offering ways to solve some of the world's most complex, yet rewarding challenges. We are creating platforms that give our employees the opportunity to celebrate and be their true selves, ensuring women, ethnic minorities, differently-abled, and LGBTQ+ employees all feel supported and valued in our organization. Our company aspires to represent and reflect society. Internally, we are invested in training our employees and providing holistic solutions designed to ensure we are an injury-free workplace, promoting a culture of inclusion and building communities through our employee resource groups, creating a sense of belonging and allowing us to grow together. Overall, we are a company who innovates, and innovation drives market growth, and diverse teams are best positioned to deliver this. The last of our four key areas drives accountability to deliver everything we set out to achieve. The governance and commitment pillar ensures that our company relies on a formal discipline to guide all matters related to sustainability and deliver results, including the definition and implementation of specific activities and the monitoring of the underlying targets. We will soon be holding a new quarterly executive sustainability committee chaired by our CEO, Scott, while continuing our regular ESG board committee meetings. CNHi is designed to deliver for our customer, from the CEO and board level through our CNHi business system, which is linked to compensation and performance. As part of this focus to deliver on accountability, CNH Industrial is putting in place a new business system we expect will ultimately produce a positive impact on sustainability, driving product innovation and customer focus. Sustainability is a crucial aspect of our corporate strategy, an aspect we will continue to leverage in creating shared value for all of our stakeholders. Our ultimate objective is to become globally recognized as a sustainability leader in the agriculture and construction segments, set science-based measurable targets, and report them according to formal procedure, become the employer of choice in our industries, and keep being accountable to our sustainability performance. All the above are means through which we contribute to the United Nations 2030 Agenda, focusing specifically on the Sustainable Development Goals, or SDGs, deemed most relevant to our business. As stated in our previous plan, we decided to keep focusing on Zero Hunger, Good Health and Well-Being, Decent Work and Economic Growth, Reduced Inequalities, Responsible Consumption and Production, and Climate Action. It's CNH Industrial's way of contributing to a better future for our business, our shareholders, and the global community. Thank you. Ladies and gentlemen, please welcome Chief Financial Officer, Oddone Incisa. Good afternoon. Good afternoon to you, and good evening to the many that are connected via the webcast. Thank you to our colleagues and friends connected from Asia, Europe, for staying up so long with us tonight. Before I start, I need to call your attention on the disclaimer and basis for presentation page here on the screen. Then I'd like to kick off with a quick recap of what we have covered so far this afternoon with our colleagues in the segments, and then a quick outlook of what I will cover with financial services later in the presentation. Derek presented earlier in agriculture, projecting sales of $16.5 billion-$17.5 billion in 2024, and an adjusted EBIT at around 15%. It is on the back of stable industry and globally balanced presence in the world. Our renewed focus on gross margin through commercial discipline and operating efficiencies coming from strategic sourcing and supply chain improvement. Additionally, there's a notable step up in R&D and CapEx for new products and critical technology in precision agriculture, as we heard. This is to respond better to the needs of our customers and ultimately to make us stronger and more resilient. Our profitability in agriculture has improved over the last few years, and we are building on robust foundations that put us squarely in the mid-teens for adjusted EBIT margins for 2024 and beyond, even if the markets were to soften. Construction is a sound transformation story, as we have heard from Stefano. From a market perspective, we view the current U.S. market as strong, and we view some incremental volume coming from the infrastructure bill. We have solid market presence in South America, and with the acquisition of Sampierana, December last year, we are profitably extending the offering for construction in Europe. Lastly, we have, as we have seen, several investment synergies with the agricultural segment for electrification and technology, and this positions agriculture for profitable growth. This is a business that has a respectable top line, and is a business that will double the profit margin in the next three years. Both segments will generate the cash necessary to fund their growth, and I'll talk more about that later. Now, on financial services. Financial services gives a competitive advantage to our industrial segments around the world, with customer knowledge and tailored financing tools. It will grow the portfolio with a combination of increased penetration and higher sales from our equipment operations. We expect to have a net income potential of $360 million-$380 million by 2024. This continuing with a target pre-tax return on equity of around 20%. Two weeks ago, we presented the full year 2021 results, and we discuss the pro forma figures for the new CNH Industrial after the spin-off. As a pure player in agriculture and construction with a strong financial service company, we are a company with almost $20 billion in consolidated revenues, with double-digit margins pre-tax on consolidated numbers, and with a solid cash generation. You may remember 2019 started strong but ended with our industries and markets quite under pressure. In 2020 and 2021, with the pandemic and all the implications that we had on supply and demand during the pandemic, we're working relentlessly for increasing the gross margin of our industrial activities. Of course, industry growth helps us in improving the bottom line margin, but we also posted two years of cash conversion rates well above 100%. Earnings per share in this timeframe doubled from $0.64 - $1.28. Additionally, we made major investments in technology with the acquisition of Raven. We completed an important M&A for the construction business with the acquisition of Sampierana. We simplified our portfolios significantly with the spin-off. All along, we have maintained a healthy balance sheet, and we think we are in a stronger position now for moving forward. We started 2022 as a leaner, more agile company, with, as we heard from our colleagues before, with a sharp focus on customer centricity. Now, the plan that we have presented today relies on minimal to no market growth from 2021, but is really grounded on our conviction that with best-in-class products and technology, together with the strengths of our brands, we will be able to expand market share, and more importantly, to maintain and improve the pricing power that we have gained in the last few years, and that is reflected in the expansion of the gross margin that you see here. For sure, precision agriculture will contribute to the growth with higher content, especially on our combines and the higher power machines, driving market share and margins, and this will grow further after 2024 when we'll have the full implementation of all this or part of this innovations and the full implementation of the integration of Raven. We have regional organizations, as you heard from Scott and from Derek, that are responsible for the management of our brands. Through their specific and their professional dealer network, we will be seeking for higher market share, combined market share, without fighting on pricing, with more disciplined pricing. In addition, on the construction segment, the acquisition of Sampierana is important to us because it opens up new profit pools through the direct entry in the mini and midi excavator segments. On top of this, increased penetration on parts and services also linked to the digitalization effort that we are taking will contribute to higher margins. It is a plan based on a combination of growth and operational improvements through more effective strategic purchasing, improved logistics, lean manufacturing. These will be the drivers for the growth in EBIT between 2021 and 2024. On lean manufacturing under CNH Industrial business system, we will have the entire organization looking at lean with expanding what we have done so far with world-class manufacturing. We expect to have operational improvements of around $35 million per year from our plants, and this will be on top of the savings from the strategic sourcing program. As G&A will grow and will grow proportionately to revenues, but we will remain at today's industry-leading levels of around or below 77.5% of sales. We'll talk about R&D a little bit later. Maybe still on this slide, the return on invested capital is expected to increase to 19% by 2024, which is a 350 basis points increase while we will maintain strong liquidity in the balance sheet and a quite large debt to support it. Over the three years of the plan, operating cash flow coming from the business will be around $6.2 billion. This will provide the funds that are needed for the capital expenditure on products and technologies on top of around $2.6 billion that we will expend during the plan on R&D in our P&L. All in all, cumulative CapEx will be $1.8 billion for the three years, and this is a 35% increase from the run rate that we have so far. Roughly half of these investments, of this CapEx, will be directed to new products, to precision technology, and to alternative propulsion. The balance will be dedicated to improving our facilities and our production sites to be at the forefront of remanufacturing, ensuring people's safety and wellbeing, and a lower impact on the environment. All this guaranteeing that we will have the capacity not to slow down market share growth that we have in the plan. After CapEx, we will have $4.4 billion in free cash flow over the three years, and this of course will be available for shareholders' return, for balance sheet deleveraging, and for targeted M&A. We'll talk more about capital allocation after, but now I'd like to take a few minutes to talk about financial services. Financial services is a global business that provides floor plan financing to our dealers and retail financing and operating leases to our end customers globally. It is a distinctive and competitive element of the way our brands go to market. Over the last few years, our CNH Industrial Capital has modernized its platforms, its IT systems to enhance the customer experience, to get faster approvals on credit, to get flexible terms, and bundling financing and insurance services. In 2022, we will start providing directly credit, revolving credit accounts, which we call Productivity Plus, for parts and services to the customers of our dealer in North America. This is an activity that we have been doing, but we were outsourcing it to an external financial provider. In 2021, we established a new branch in Chile, and this is to support the South American customers outside of the traditional markets of Brazil and Argentina. We will continue expanding to other countries and to other markets wherever captive financing may be needed by our brands and by our dealers. We have in Capital a strong credit performance, and we are one of the larger or probably the largest issuer of ABS in equipment financing in North America. Also we have been differentiating or diversifying our funding as our rating has improved over the last 10 years, and we are now also a frequent issuer of bonds. Today, financial services finance around 37% of the retail sales from our industrial segments. We expect to increase these to more than 40% over the next three years. The receivable portfolio will grow from $20 billion - $26 billion with a combination of higher sales from our brands and higher penetration from our captive financing arm. Also, our European customers will be serviced by the portion of the financial service organization that, with the spin-off, move to Iveco Group. We will retain also in that portfolio risk, responsibility for funding and for risk. Basically we are keeping the operations in common with Iveco, so we're preserving some of the synergies that we have, but we have separate portfolios, separate risks, and separate funding. Now, if we move to the consolidated figures. If we combine the revenues of industrial activities and financial services, we will have revenues for $22 billion-$24 billion in 2024. The other numbers here is that adjusted net income is expected to be at around $2.3 billion in 2024, with adjusted EPS at around $1.70, basically on the same share base, share count that we have today. Capital allocation priorities. I talked before about the organic growth that will be funded by the cash generated by our operations. We remain firmly committed to our rating, and we want to improve it. We can run these operations, the industrial operations with low debt or with no debt, but our financial service business, as I said before, is important for the way we do our business. We think that solid credit rating and a robust liquidity are essential for supporting the balance sheet needed by the captive financing company. We are committed to the credit rating and as I said, we see space for improvement from the current ratings. Over time, we will also reduce gross debt as the bonds we have will come to maturity, and this will moderately reduce the interest expenses from today's levels. Of course, we continue supporting our annual dividend, and we're working in the plan with a range between 25% and 35% of net income, which is consistent with our policy. We will have flexibility around share buybacks, even though we have very little in the plan. We will then maintain the flexibility, as Scott said before, for inorganic investments, including using the CNH Industrial Ventures platform that we announced this morning. We want to further position ourselves as innovation leaders in A g and in CE technologies, and we want to bring to our customer the most advanced features for improving their productivity and their sustainability. We will continue with CNH Industrial Ventures to nurture the investments that we have already done and possibly do more investments in disruptive companies that can support our profitable growth and introduce advanced technology with our products. Now, with numbers, the capital allocation. We started 2022 with around $10.5 billion on available liquidity, and that's a combination of cash and committed credit lines. We will. The industrial operation will provide more than $6 billion in cash over the plan, and we talk about the $1.8 billion that we are dedicating on CapEx for organic growth. We will deleverage our balance sheet by around $1.5 billion-$2 billion, and we will return to our shareholders $1.5 billion. The plan shows here $12 billion in available liquidity at the end of 2024. There's some contribution from the financial services there as well, and this assumes that we have no funds earmarked here for M&A, but of course it leaves headroom for strategic investments over the next few years. Here I'd like to summarize the figures in the plan that we have presented today. We are assuming limited or no growth from our industries from 2021 to 2024, but we see a 6% top line CAGR. We have more than 300 basis points in gross margin growth. We see 2-3 percentage points in adjusted EBIT margin growth, and we see our agricultural business to achieve and maintain a margin at around 15%. We see construction equipment set to continue building on profitability above 6% after 2024. We have discussed about cash flow and investments. I'd like to confirm here that we expect to be net debt-free for industrial operations again in 2023, and that our earnings per share are expected to be above $1.70 by 2024. Concluding here, I would say that we have set forth a very clear path for the creation of shareholders' value with a leaner and more focused industrial and financial service businesses, all working toward a defined goal of improving shareholders' return. We will step up the investment in new products and new services, not only with a view of solid financial results, but also in contributing to our sustainability targets we talked about before. This means running the business with a clear sense where we want our balance sheet to be, while we're investing for the future. I would say in summary, we are showcasing a company that aims to provide superior and sustainable products and services to our customers, and a management team who intends to provide robust returns to the shareholders and a positive contribution to society. Thank you. Ladies and gentlemen, please welcome back to the stage Scott Wine. Well, I promise you that's the last slide you will see from us today. It's been a long afternoon or evening in Europe, and we appreciate all of you sitting through this. Hopefully, it's our goal that you actually learn something, and more importantly, understand where we're going with the company. I'm extremely excited about our future. It's very much a self-help plan. We're not asking or counting on support from the market or anyone else. These are things that we have a lot of control of, and I'm really confident in the team's ability to deliver on that. An example was, I walked in the cafeteria two weeks ago, someone came up to me and he said, "Scott, I just want to tell you, I look forward to getting up in the morning, and I have a lot more energy coming to work." That's not really to me. That's the entire leadership team that is leading a transformation that is gonna make this a better place to work, not just for us, but for our customers. I think you saw it through all of the presentations, that idea that we're gonna put our customers first. We're gonna be good stewards of capital. We're gonna be really good stewards of the environment, and I think you saw that in Kelly's presentation. First and foremost, we're gonna be good stewards for our customers, and when we do that, we can be good stewards for our shareholders. We think there's a lot of value here. There's a lot of work to do. We're not afraid of work. As you saw, I'm really proud of the way the team got through 2021 and the supply chain challenges. It doesn't look like it's gonna get easier from a geopolitical standpoint. We have the people, we have the team to deliver this, and I hopefully you saw it, we have the plan that we can do. You know, I talk a lot internally about accountability. For us, we talk about a say-do ratio. That means that how often do people actually do what they say they're gonna do? Really, it's what I'm asking you of us, you have to count on the fact that we're going to do what we say we're gonna do to deliver this plan and be better for all of our stakeholders. That will wrap up the overall conversation. We're gonna ask some chairs to be brought out. The whole team will be here. We've got about 45 minutes of Q&A. Obviously, we'll be around afterwards for a little bit of questions as well. 45 minutes, and we'll alternate between questions taken here in the room and also those coming in online. We will now be conducting the Q&A session for the next 45 minutes. As a reminder, if you are interested in asking a question, please raise your hand in the room or online, and we will take the questions in the order they come, alternating between the online and the house. Please take our first question from the house audience. Okay. David? Of course. Thank you. I was curious, the decision to not put any real capital allocation into the 2024 targets, and then also you're saying you'll be EBITDA around $3.2 billion in 2024, and by then, presumably, almost net cash. Can you give us a sense of your comfort level when we try to think of how much firepower that, say, your net cash $1 billion, EBITDA is $3 billion. Are you willing to go to one-turn EBITDA or more? Just so we have some sense of the firepower. Thank you. Yeah, I think I had the slide with the liquidity at the end of the period where I would say we expect to be at the level of liquidity. We can't be at the level of liquidity we were at the end of 2021, beginning of 2022. The firepower is the difference that we have in there for cash allocation to either M&A or shareholders distribution. The decision not to put any capital allocation in the guidance? That's how we put it, and we want to keep some level of flexibility, of course. Just to follow up, can you clarify then where you're looking to allocate that capital as we sit today, a balance between repo or M&A? If it is more M&A, what are the things on your agenda, if nothing? I think you mentioned maybe not quite as big as Raven. Well, I mean, one of the things is that. I mean, you're asking the question because we generate a lot of cash. We're going to have a good bit. With the Iveco Group off, you know, we have better places to put it right now. I think I said it in my prepared remarks, and Donnie said it in his. We kinda rank it order. First is organic growth. You see a lot of it, you know, in a big increase in how we're funding Derek's business and Stefano's business and a lot of it going to technology. So that's our first dollar. Second dollar, we've got to maintain a good credit rating. We have a big balance sheet for our financial services business, and I think with this plan, our credit rating will be improving perhaps. The next two blocks are distributing to shareholders and driving inorganic growth. We didn't put in there where that allocation would go because we don't know. It's up to the board of directors ultimately, but really, it's also what the opportunity's like. We really see opportunities to advance our capabilities, mostly with technology, both with what Parag and Selin talked about, but really to how we can drive profitable growth. I think what we did with Eurocomach is an example of spending money where we can drive profitable growth in our construction business. How much of that goes there versus towards share buybacks and dividends, I think that's just the conversation we have to have with the board, and we didn't feel like at this point putting out an allocation between the two because we don't know what the other opportunities are gonna be on the M&A side. Great. Thanks guys for the day. First I was hoping could you flush out the 200 basis points plus of market share gains? You know, how does that vary by segment, by region, even by brand, if you had an idea there that you could talk about? I mean, really, market share gains are based. The plan builds it together. I mean, driving the improvement we're doing with our dealers and better leveraging our brands helps, but it's mostly the product. We talked about 200 product launches between the two businesses. You know, that certainly helps. Obviously, the improvements that product's driving on the precision also is a key enabler of it as well. But you put them all together, and we think in our major markets, being, you know, South America, North America, and Europe, you know, we feel confident that that should be. I mean, I'll be disappointed if it's not a little bit more than that, actually. If we look at our growth over the last two years in the Ag segment, it's been fairly balanced between the four regions and the two brands. Again, we're expecting a similar path for the next three years as well, not necessarily favoring one versus the other. Got it. Thanks, guys. On the construction side there also, Stefano. How should we be thinking about market share on that one? On our side, I think with the Sampierana acquisition, we have the technology and the product that we've been missing, or not also considering the OEM shortage of supply as well, that we can really fill our network with a great demand of product. I think that comes easy. If you compare similar compact line products, we have market share in the range of high single digit, if not double digit in some. This is one product line where we are really low in share. It's something which is highly demanded by our dealers. That's an easy one, I would say. Plus, there are some geographies where we have opportunities, certainly North America and the Southern belt, where we have to strengthen, and we are strengthening our network. I see lots of opportunities coming out of there. Europe, of course, where this product is probably the majority of the TIV, of the total industry volume. Just one real quick one, just following up on David's question. You know, do you guys have to achieve your net debt free by 2023 before you explore share repurchases? No. Thanks. Let's go ahead and take one question from the online audience. Daniela Costa, please. Hi. Good morning. Hope you can hear me. I was actually, if I can, going to ask three things. One on construction equipment, one on Ag, and one generic, and I'll actually start by these orders. First on the margins, I understand 14.5%-15.5%, you don't have market growing that, but obviously your end markets are highly cyclical. If you could help us understand sort of the peak-to-trough volatility that you expect going forward to put this in context if the market effectively doesn't grow 0% and fluctuates as it has in the past. My question on Ag was related to service penetration. I think you said after market sharing, one of the slides was 20%, if I saw it correctly. What's the penetration in the install base today, and where do you want it to be in 2024? Sort of how, what is the potential further beyond that? My question on CE is regarding the synergies you get from having CE on in the business. How much of the 5.5%-6.5% is because you are in the group? I know portfolios are not totally comparable, but there are peers out there that have double-digit margins. Is that something you could aspire to further down the line? Thank you. Maybe I'll start with the first one on the industry. In 2022, we're expecting demand to exceed supply. We're expecting another troublesome year from a supply chain perspective. While we expect the overall industry and market to be up, we expect that to spill into 2023. Although we do then expect to have the inflection point where the supply base starts to, you know, meet our demands and our industrial facilities to meet the customers' needs. 2022 will be higher, 2023 will be slightly lower, and then we're expecting 2024 to normalize to a similar level of 2021. Again, we're not uncomfortable with that situation because if we look at the industry of 2021, it's up, again, different region by region, but 10%, 20%, 30% across major product lines and major regions as well. So it's still a very, very good market for us. I think we've demonstrated today that we are not building a plan that needs the industry growth to realize. We're building a plan to drive market share growth, to buy out, to drive gross margin improvement on an industrial side and with our products, such that if the market is higher in 2024, we'll capitalize and take full advantage of that as well. It's not heavily dependent on the industry coming back towards us. I think these last couple of years have taught us that the predictability of the industry is very complicated as well. Again, pandemics can change the industry ± 15, 20%. We are well-balanced and well-placed to accommodate whatever that industry looks like going forward. For construction, I mean, in reality, the synergies we see with Ag are mainly in the investment area, where we see the opportunity to really benefit from what Ag anyway has to do, and we get it for free. For what is related to the plan, we do not count significantly on those synergies to realize EBIT, for instance. I think it's solid on our own with the foundation that we have rebuilt. In terms of expectation for future growth, I mean, this is the first leg of a long journey. I think we are coming out of a period where construction has not been performing, as you know, particularly well. I think the trajectory that we have taken and the performance progressively during the quarters is showing that our foundation is pretty solid. The first leg. I think it's doubling the EBIT compared to today, and plus, I think it's a significant target. Then another leg. With Nicole. Thanks. Maybe just first question around the Ag outlook and, when you put together the revenue outlook, is there any contribution from pricing? The reason I ask is obviously, pricing has been really strong in the industry. Maybe the second question is, are you guys seeing any sort of evidence of elasticity of demand developing in the Ag space? We envisage incremental pricing in 2022. In 2023, 2024, we're expecting costs to normalize. Obviously, we are pricing for the, you know, significant hike that we've seen in utility prices, raw material costs. Again, difficult to predict if, where and when, but our expectation at this point, that will start to normalize in 2023, which then will limit our opportunity for pricing in 2023, 2024. Obviously, I think we've demonstrated in the last 12, 18 months, where there are headwinds in cost, we are more than capable of pricing above those headwinds as well. At some point, there has to be an inflection point where the elasticity of price and we were discussing with David earlier, where there comes a point where the customer will wait for the next cycle rather than continue to demand that price. We're ahead of the game. We intend to stay ahead of the game in 2022 with price exceeding cost. It's difficult and, you know, we see the circumstances today with Ukraine and Russia, which is another potential cost hike coming towards us. We're managing that, you know, meticulous as we go forward, and that to normalize with no significant growth in 2023, 2024. If it happens, we'll be there to take full advantage of it. Next question. Hi. Thanks. If you could just comment, Parag, obviously, you know, you showed us the pathway to some more autonomous solutions. Just curious how you're thinking about the business model for monetizing a lot of these solutions. Will it be more of a recurring model or more a point of sale. And then just as a follow-up to some of the comments about the Ag market, if you can also comment, you know, I think you talked about channel inventories being very low, but how you think about restocking the channel inventories when you talk about your outlook over the next couple of years. Do you wanna take the monetization? Yeah. I mean, let me give you an example rather than give you a hypothetical answer. If you look in Midwest corn today with the input costs and the commodity prices, with a fully deployed precision solution, which gives you higher yields, gives you lower input costs in terms of, you know, less needs for pesticides, et c., and also an improvement in labor costs as well, it will give you around 40% improvement on a vehicle or equipment that's non-precision equipped. Obviously, we've seen, you know, prices and input costs move dramatically over the last period, so we're seeing between 30%-50%. So again, we're expecting the requirement, the need and the uptake of those solutions to be really significant. Obviously, you know, as we develop a portfolio, there'll be more and more take in there as well. Again, with regard to, you know, recurring revenues, everyone has a prediction. It's 10% in 2030. It's 20% in 2027. All we can say is with the plan that we have and the solutions that we have and the roadmap, we're confident we'll be there to take full advantage of that recurring revenue, without predicting something that's gonna be seven, eight years from now. Yeah. I would add right now from a technology side, we're focused on solving customer problems, and so we're creating value for them. As Derek's saying, if there's a 30%-50% opportunity for them in terms of efficiency, we have the tools in place to be able to participate in that. Whether it turns into a SaaS model, a one-time purchase, a participation in the value that's created, that's Derek and Oddone and Scott's call to make on how that works. Right now, the technology teams are focused on getting great products out to customers that are actually solving the problems that they have and making sure that they're happy with them. Great. Let's go with an online question next. Martino. Hello, can you hear me? Yes, we can. Okay. Thank you. Good afternoon. Good evening, everybody. Scott, in your initial remarks, you mentioned Raven makes you stronger, but not enough. What's missing and what you are looking for, I suppose, through acquisitions? Still on Raven, you provided the guidance for revenues and EBITDA synergies when you announced that the acquisition was on the 2025. Could you provide us an update on what you're embedded in your in your guidance? One question for Oddone on the bridge, on the operating profit bridge. If you could elaborate a bit on the blocks that you call growth, because they are the most important ones in the bridge, and they are composed by several different drivers. If you could indicate what are the most important ones? Thank you. Well, thank you. First of all, I mean, I don't wanna suggest that we're not absolutely thrilled with the Raven acquisition, but it doesn't completely close the gap. We never thought it would. What we got was a great team and great technology, and hopefully, you saw that coming through. You know, what we wanna do is have an industry-leading solutions across precision and autonomy. Just because we own them doesn't mean that we can rapidly accelerate what is deployed in our equipment. It's mostly plug-and-play. We can go rather quickly, but it needs more software engineers. We need to advance the stack a little bit faster. So there's work to do. It's work we know how to do. It's a clear path to get there, but it just doesn't. Because we closed the acquisition, doesn't immediately close the gap in terms of where we want to be with our precision autonomy offerings. Parag, do you wanna add? Yeah. I would just say from the time we've closed Raven, you know, you just have to remember, we've had decade-long partnership with them. We've been working with them for years. What we are seeing immediately now is this natural kind of glove and fit of the Raven team and the CNH precision teams. They're together working through, like, what that future looks like. Where Scott's going is, like, it's not a magic band-aid. You just buy Raven and everything switches, right? You have to get you know, the teams are together, the stacks are coming together, the solutions are coming together, you know, Derek's team and the brand leaders are coming in, and we are getting a really clear path of how we're solving these customer problems, and we're just cranking on that. I think Scott's point is we need some time on it, and we're creating customer value and demonstrating customer solutions, and then we'll monetize. Our original finance targets that we talked about, I think we're certainly maintaining those. I believe we see opportunities to go a little bit faster and do more. Remember, it's we work and then we start to get the benefit. Really, it's 2024, 2025 and beyond where the margins and really the real integration benefits start to come in. We're absolutely. There's nothing negative surprising about what we got. It's a really solid business with a solid outlook. Martino had a question about the growth components of the margin. Well, there we have some of the pricing that Derek was referring to before. We have mix of richer products and we think that there's space for growth within agriculture in the highest power tractors in North America and in the combines in North America, which of course has an impact on the overall mix. And we have higher content coming from technology and from better products. So those are, I would say, the four largest components. Of course, pricing and is also a consequence of a better, more focused regional management of our brands and of our network and of how we compete in the regional markets. Maybe going back to the question we had before about the inventory situation and the stock in the market. I mean, our pricing also depends since we are a distributed business with dealership. It also depends on the levels of inventories and the pressure that we have on the channel. We have very healthy levels now. We have space for some growth there into our channel, but we will maintain the discipline to make sure that we will not give up on pricing over time. Over to you. Wanting to ask about the electrification and alternative powertrain investment. First of all, can you just summarize for us what the total cost of that investment is over the plan horizon, how that splits or how that's being allocated in your operating margin bridge between Ag and construction? Then just how much of that demand is being driven by the end user versus your outlook for the regulatory environment? Gotcha. Let me start, and then I'll let these guys fill in with the details. One of the things we really like about this, the plan that Selin pitched, it's somewhat asset light. The fact that we've got a great relationship with our sister or former sister division at FPT, which is a long-term TSA that will help us drive, you know, a lot of the, especially the biofuel stuff there, but also some of the electric powertrain capability that they have. Our investment in Monarch is gonna be a heavy yield to especially the low horsepower tractors for electrification, and that is a great, again, asset light in the terms that we get access to it without owning it. You wanna add anything to that? No. I mean, we are investing. We're not over-investing, expecting the industry to go there. We're investing in line with where we expect the industry to go. Again, I was responsible for many other things back in 2016, 2017, was commercial vehicle product development. I was there when we put electrification and natural gas in our trucks or buses, which again were all profitable in our development products that we developed in the commercial vehicle at the time. You can't underestimate the benefit that we have of four or five years of technology advancement and development that we can bring into our off-highway portfolio. Again, we don't have to repeat a lot of that investment because the core base investment has already taken place in the last five years, and we can take full advantage of that. The way we're thinking about electrification is that there is an inflection point coming. We're not there yet. It's going to happen. I mean, even automobiles, we're hearing all the talk about it, still a small percentage of what's being built. We know it's gonna happen. We know there's gonna be customers in both Ag and construction that want electrification. We wanna be positioned to be able to provide the best solution to those customer when it comes. Anything you wanna add on the actual- No, I think. -application? I think you said. I mean, it's not the predominant part of our investment or of our step up in investments. With all that's said, the thing that Scott said is it is something we're investing in, but it's not predominant. And- by any means into our investment. Again, from our intelligence and where the industry's going, we do expect there to be a significant increase in regulatory requirements for the next period as well. We're staying ahead of that curve. As we go to our next question, if there's anybody online that has a question, please remember to raise your hand. Thank you. Thanks, Scott. The operational content here was excellent. My question is more on the governance side, and some opportunities there. Any thought as it relates to dual listing of the stock now that you're more of a North American company, thoughts on S&P 500 inclusion. There's some real opportunities here to get more passive investors into your stock. I just wanted to pick your brain as to how the board's looking at that as well. Yeah, no, we're having those active discussions with the board. You know, obviously there's benefits and then there's offsets. We're trying to balance those two. Really quantify how good the benefit is and if it's worth the thing. It's absolutely a discussion that we're deep in, but it's gonna be an objective decision that we get the data for, and then the board makes the subjective decision about whether it's the right thing to do. We're in the midst of having the analysis and we're having that discussion now. We don't have the answer for you. Steven Fisher. Hold on. Give Steven the phone. Yep. You can't go back to David before Steven gets you. No, no, we're gonna go with Steve. Great. Thank you. Scott, how optimized would you say your dealer network is at this point on both construction and Ag? And to what extent do you have initiatives to incentivize consolidation or strengthening of that distribution network? You know, I would say on overall, I'm very pleased with our distribution networks. In fact, I've been invited to go down to Texas for a new Case dealership going in down there. There are points that we can add to that'll be constructive, pardon the pun, on construction specifically. The one area to possibly clean up, if that's a term I can use, is because of the history of brand competition, there are places where we have New Holland and Case dealers perhaps closer to each other than is necessarily helpful. We've already seen consolidation happen in those markets. I think, you know, we're seeing some of our larger, better dealers. Really, the dealer principals make all the difference in the world. I mean, it's not as much about where they are, it's do we have the right people. I think what we're seeing across our network is the kind of the cream rises to the top. You know, we will continue to support and facilitate that, but not mandate it. Okay. Just a couple of follow-ups. You mentioned you started the process of finding new owners for the non-core- Mm-hmm. Raven businesses. To what extent do you have any of that assumed, any proceeds baked in your capital allocation plan? Just my other follow-up on this M&A process is, to what extent should we necessarily assume that businesses you might buy will be either non-revenue generating or nonprofit generating, given that you're looking for more emerging technologies? Or are there some companies you could buy and add on that are already going to be accretive initially? Um. Let me start. There's no capital coming from the disposition of the tool business in the capital allocation that we showed. Yeah, we're gonna get it. We're just conservative and not accounting for it. Yeah, of course. Yeah, no, there's. It's not a rounding error. It's helpful, and it will certainly improve our cash position in 2022. That's that. The other question was about... Businesses we might buy. Businesses we might buy. I mean, obviously. I mean, when we first started looking at Raven, I mean, I'm an industrial guy. I come from an industrial background, and we're paying revenue multiples, and I was uncomfortable with that. I can't see that we're gonna go out and spend a ton of money on non-revenue things because that would make me even more uncomfortable. Now, I do know that some of our competitors have done that and had wild success with it, so I won't rule it out. We do need to build capability, and I think there are times where we will do that. It may be the new CNH Industrial Ventures that we announced this morning, Michele Lombardi, who leads that. I mean, they've got a very good process to identify those technologies early on and the likelihood that some of those will be non-revenue producing and maybe we want to buy them. I wouldn't say that's our goal to do that, but certainly wouldn't rule it out either. Okay. I think we're gonna go with an online question at this point with François. Please go ahead. We can't hear you. We can't hear you, François. I think you're on mute. I think that's mute. I'm in mute. There you go. Now we can hear you. Okay. Thank you very much. Just a couple of questions from my side, more about the current events and how they are reflecting your guidance. First point is, current Ukraine crisis. You mentioned geopolitics as a potential source of threat, in your core points. Can you just come back on this point? Given the impact it seems to have currently on crop prices, can you just give us some more details on the moving parts, from that side? The other question is on the rising interest rate environment in the U.S., and how do you reflect it in your Ag demand forecast? Thank you. All of those were. We didn't know about them, but all of them, as I showed on the chart of what was impacting our business, were anticipated. We're gonna have geopolitical. We knew interest rates were going up. We were relatively balanced in that we do get benefits. You're seeing, you know, wheat price is going up right now. Corn is actually better than we thought it was gonna be. The input cost on the other side, oil, for example, is going up. We anticipated a dynamic environment. I doubt we got every one right or wrong. I think you mentioned Ukraine in there. Was that correct? Yeah. Yeah. I'll start off with that. Yeah, I mean. Listen, the first thing related to the issue we have between Ukraine and Russia is the safety and wellbeing of our employees. Again, we've taken all the precautionary measures to make sure our employees and employees of our dealers are obviously safe and Their families. Their families are well protected in this next period as well. We haven't seen any material change to the market quite transparently in the last 24, 40 hours. We are fully aware that things will change, and we are fully prepared to adapt to those changes as well. It's obviously a very unpredictable situation. It's changing by the hour, if not by the minute. We are watching that space, and we have you know every opportunity or avenue covered from what we consider, and we'll play those cards as we need to as this thing unfolds. As you currently look at it, most of our dealers in most of the farming areas is outside of the regions that are currently in play, if you will. Certainly watching it very closely. Any question from David? Hi, Don, I apologize if I missed in the presentation something with the structure of the thing called changing. If not, you're showing the portfolio grows 30%- Yep In the next three years, but the netting comes only up six. Is that? I mean, sometimes Well, well, yeah. It's hard to find. There's a growth in penetration there. Yeah. Also the portfolio being retail loans and leases, there's a sort of certification there. We have been growing the last two years on sales, and that will add up in the growth of the portfolio. There's an impact on penetration rate moving from 37%-41%. One of the things that happens when interest rates go up is that there's less liquidity in the market, there's less competition from independent banks going into retail financing of farmers. Normally the captive is used more, and so there will be growth in there as well. that's why I'm so surprised, the gap, though, between 30% portfolio growth and only 6% on net income. Is there something there about you're getting big lease gains now and- There's- Expect them not to be- There's gonna be. Remember that portfolio also has floor plan financing for the dealers. There's gonna be some more exposure to the dealers. There is some funding of the growth. Correct ... with the margins. Correct. Thank you. Appreciate it. Tammy? Thanks. This is Tami Zakaria from JP Morgan. My first question is, how do you feel about your pricing power should there be a downturn? I have a follow-up. Yeah, I mean, I think if you look over the last 12, 18 months, our pricing power has been particularly good. If you compare yourself versus our peers, I think we are outpacing them in terms of price positioning. Looking forward, I mean, we have pricing in place where we already see, you know, negative headwinds on utility costs, raw material costs, semiconductors. So again, we're well-prepared and well-balanced for what we know coming towards us. We're also conscious that it's a very, very volatile market we're dealing with from a commodity perspective. Again, another outbreak of COVID, heaven forbid, could have another impact on Tier 2, Tier 3 suppliers that could then have a knock-on effect as well. So we're monitoring religiously. We're staying ahead of the game. Again, I think rather than tell you what we're gonna do in the next 12, 18 months, I think you can look what we've done over the past 12, 18 months and know that we're ahead of the game, and we intend to stay so. Maybe I would go back and look at the channel as well, right? I mean, that's compared to other situations where we had much more inventory in the channel, and it was more difficult to pass pricing. We expect that this time, starting from a much cleaner situation, even if the market were to slow down, there will be still a buffer for, you know, first for sales, but also for being more disciplined on pricing. Again, there will be an inflection point. We said earlier about elasticity of price. There will be a point where customers will wait another cycle. We're not there yet, but again, that could come in the near term if we continue to see these cost hikes. Yeah. To add on, Don, I think more than cleaner, it's depleted in the sense that we have lower inventory than normally we should. We don't see immediately a supply chain improvement as such that will make sure that we can replenish in the short term. We see still difficulties continuing. Thank you. That's helpful. One quick follow-up. I think you quantified some operational efficiencies in both the segments. How do those phase in over the next three years, ratably or back-end loaded? Well, the supply chain savings are more back-end loaded because it's an investment in time and effort to get that. The others is more ratable over time. It's the supply chain that will be certainly year two, year three elevating. With regard to the balance, I mean, we showed you the normalized supply chain conditions, the strategic sourcing and the lean operations. The expected savings are fairly well balanced between the three of them as well. We're not, again, heavily dependent on one criteria. Just to support what Scott said, I mean, when the supply chain normalizes, we'll take immediate advantage of it. Again, it's certainly not going to happen in the first half of this year, and there's still a lot of questions as to what normality we'll get in the second half of the year as well. Again, once that normalizes, we'll take full advantage. The sooner, the better. We're gonna take our next online question from Ross Gilardi. Hey, everybody. Thanks for fitting me in. Scott, I just wanted to get your, you know, your general sense. Your biggest competitor in the world is highlighting $150 billion addressable, you know, incremental addressable market in Ag by the end of the decade. I mean, you're reflecting none of that in your outlook. You're reflecting no cyclical tailwinds in your outlook. Certainly, the content in your deck today seems to support and convey a lot of enthusiasm just on the structural growth opportunity in the market. That's really just a statement, but feel free to respond to that. Just generally, I mean, if one, you know, naturally wants to take the view that your revenue assumptions for 2023 or 2024 are simply too low, what sort of incremental margin assumptions would you suggest is appropriate? I mean, in the past, you've done, you know, about 25%. Is there any reason to think you cannot do that if the market turns out to be more of a friend than you're assuming in your projections? Thanks. Well, in terms of total addressable market, I think, you know, we talked about $100+ billion for Derek, and obviously Stefano and the overall market's probably about the same. As far as putting another $150 billion of incremental on top of it, I mean, we are clearly positioning ourselves to be an incredibly worthy competitor with our technology stack, our alternative and electrical powertrains, and the capability of our iron overall. Not to mention what we do with our brands. We don't feel like we're gonna give up much as we continue this self-help project that we're on over time. As far as the cycle goes, I mean, if we're wrong, obviously we get better revenue growth and better margin expansion over time. Just the assumptions that we chose to take is that the geopolitical and the inflation, all of these things together are probably gonna not lead to growth in the out years once we get past this inflection point. We think it's a prudent way to plan, but if it comes across better than that, incremental margins, what do you think? Yeah, I mean, the number you mentioned, Ross, is in line with what we have seen historically and is in line with what we will have in our plan with the growth in revenues. Of course, in our plan, we also have these operating efficiencies that are independent from the volumes, right? You can say 24% + gross margins. For the company. Not the company. You're gonna do much better than that. Yeah. Plus. Less. This question is specifically for Parag, and just wanted to get your concept or your idea about how you think about developing the technology stack. Just given your background, it's a little bit different from a traditional capital goods market. How you think about deriving value for CNH beyond just that original point of sale and maybe disaggregating that value for the customer as cycle times hasten ahead of sort of the capital goods cycle? Yeah, I mean, you know, Derek and I spend a lot of time talking about, you know, our vehicles are platforms, right? Our applications are platforms. When you start thinking about the long cycle of a iron good, and you talk about the shorter cycle of a technical good, you know, we're working together on making sure that we continue to create more and more value on our platforms. As we find new technologies and new ways to connect into them, we're gonna add them to the platforms and make them available to our customers. That also goes for augmented technologies, right? When you start thinking about our perception stack and our visual stack and, all these different, you know, technology improvements, we'll continue to be able to add those opportunities to our customers. Again, we wanna win hearts and minds, right? We want our customers to know we have the best technology, and as that becomes available, when possible and economically right, we'll make it available to customers. I think there was a little question earlier about, you know, how are we gonna monetize, and software is evolving all the time. We know that, we recognize that, and that's part of the plan, and we'll continue to keep adding value to our customers. As we do, they can participate, they will. Anything else to add? I think we've emphasized it multiple times over the presentations. This starts with the customer. If the customer has tangible value in the precision technology, then they're prepared to use it, prepared to pay for it. Again, it all starts from the customer. It's not that we want to put the most profitable thing in the hands of the customer that doesn't add value. It's what the customer needs is what we provide to support in there as well, which makes us confident that our roadmaps and our plan is gonna be more successful than maybe others. Yeah. I mean, we talked about in my presentation, but like, both on the iron side and the technology side, like, we have farmers in our company that do this stuff, right? They really know what our customers want and need, and we're empowering them to go build solutions. Not only do we have our regular roadmap development sprints of the work that needs to be done, but we also have, like, innovation cycles and sprints that allows us to go find new opportunities to innovate. Scott will probably shoot me if I talk about it here, but like, we have all this cool, fun stuff we're working on that, you know, as we're showing it to the brand leaders and to, you know, to Derek and others. They're, like, getting really excited about how all this stuff comes together and how we make our customers more successful. That's all I'll say. We have a few minutes left here if there are any other questions in the room. If you're online, please raise your hand if you have a question. Okay. If there are no other questions, Scott- It must be a thirsty crowd. Yeah. Cocktails. All right. Well, any final questions? That will conclude the event. We certainly appreciate your participation. For those of you in the room, there'll be cocktails and hors d'oeuvres outside. For those of you online, get some sleep. Thank you very much. Thank you.