Good day, and welcome to the CNH conference call. At this time, I'd like to hand the call over to Federico Donati. Please go ahead, sir. Good day, and welcome to today's CNH conference call and webcast. At this time, I'll hand the call over to Federico Donati. Please go ahead. Thank you, Sergei. Good morning, good afternoon to everyone. We would like to welcome you to the webcast and conference call for CNH Industrial's fourth quarter and full year results for the period ending December 31, 2022. This call 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 express written consent of CNH Industrial is strictly prohibited. Hosting today's call are CNH Industrial CEO, Scott Wine, and CFO, Oddone Incisa. They will use the material available for download from the CNH Industrial website. Please note that any forward-looking statements that we might be making during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included in the presentation material. Additional information pertaining to factors that could cause actual results to differ materially is contained in the company's most recent report, Form 20-F and EU annual report, as well as other periodic reports and filings with the U.S. Securities and Exchange Commission and the equivalent authorities in the Netherlands and Italy. The company presentation includes certain non-GAAP financial measures. Additional information, including reconciliations to the most directly comparable U.S. GAAP financial measures, is included in the presentation material. I will now turn the call over to Scott. Thank you, Jason, and thanks everyone for joining our call. We finished 2022 with solid results as fourth quarter revenues were up over 27%, driving full year consolidated revenues up 21%. Deliveries and product mix improved in both Agriculture and Construction. Our strength was broad-based with double-digit year-over-year price realization coming from all regions. We expanded profit margins in both Agriculture and Construction despite significant input cost increases. The industry faced many other headwinds during the year, including a choppy supply chain, elevated freight cost and ongoing inflation. Late in the year, these issues began to modestly improve, we anticipate that will continue into 2023. The CNH team's creativity, hard work and strong execution resulted in company records for both Adjusted net income of $2 billion for the year and Adjusted EPS at $1.46, up 14% over 2021. We also generated $2 billion in free cash flow from industrial activities in the fourth quarter and $1.6 billion for the full year as we over-delivered on our plans to complete and ship our accumulation of partially built units. This benefited our dealers and put us in a net cash position well ahead of our plan. Last year, we launched two potent margin improvement initiatives, the strategic sourcing program and the CNH Industrial Business System, which we refer to as CBS. Continuous improvement is hard, especially in pursuit of breakthrough results, but our team has embraced this lean mindset and is poised to deliver value across the business. Looking ahead, we remain focused on executing our strategy, including significant investments in our tech stack and product development. Derek Neilson and his team continue to drive exceptional performance, delivering a strong fourth quarter with full year net sales for the Ag business up 22%. This growth was largely propelled by robust industry demand and significant year-over-year price realization, especially in North and South America. We saw improved product mix, including precision Ag revenues up 32%, which benefited from both an increased take rate for factory fit precision options and incremental Raven sales. AG profitability remained healthy with Q4 gross margins up 280 basis points and Adjusted EBIT margin up 310 points, admittedly against an easy comp. Margins were down sequentially versus our record third-quarter performance impacted by regional mix and the non-standard work required to finish units. Overall, I'm extremely pleased with the AG team's performance and results. For 2022, AG Adjusted EBIT was nearly $2.5 billion, marking our highest profit in more than a decade. Customers have responded with continued demand for our high-end products at prices offsetting increased escalated production costs. They have also recognized us with improved Net Promoter Scores, 5% higher than in 2021. Derek and his team are ensuring that customers at the center of all we do driving the right behaviors and results. Stefano Pampalone and his construction team executed quite well in the fourth quarter. With strong momentum from the Sampierana integration, manufacturing improvements and enhanced customer focus, we expect even better progress in 2023 and beyond. 2022 net sales were up 16% for both the full year and the fourth quarter, with noteworthy growth in Europe and South America. Organic growth accounted for about two-thirds of the increase in the remainder, with the remainder attributed to Sampierana. Their excavator portfolio and technology innovations have enhanced our ability to meet customer needs. Their Eurocomach platforms provide an outstanding foundation for electrification. Construction Adjusted EBIT for the quarter was $34 million at a 3.5% margin. Full year Adjusted EBIT was up 38% to $124 million. We are encouraged by the ongoing progress in construction. The team is well-positioned to deliver on their strategic initiatives, support their dealers and customers, and gain market share. This past December, we held an engaging tech day to showcase our extensive suite of precision ag technology. Attendees met our deep team of experts in automation, autonomy, and connected platforms to better understand the cutting-edge products we are developing. Through a series of live demo stations, the team exhibited the real-world applications of our groundbreaking smart iron. The products and technology that we demonstrated at tech day, that you see here on this page, and those we will be releasing over the next few years prove our commitment to being a leader in precision agriculture. We reiterate our expectation to deliver over $1 billion of precision ag sales in 2023. I also wanna highlight two recent investments made through our CNH Industrial Ventures arm. Stout Industrial Technology is a U.S.-based startup focused on AI-powered smart agriculture implements. EarthOptics has proprietary sensor technology that precisely measures soil health and structure. By taking minority stakes in these and similar companies through our ventures portfolio, CNH is staying on the cutting edge of emerging technology to develop solutions that provide real advantages for customers. CNH remains committed to adding value and creating profitable growth for its customers and shareholders through sustainability. We have a strong history of sustainability performance as evidenced by our recognitions and our innovative products, including the New Holland methane tractor and electric mini excavator pictured here. In 2022, we pledged to set Science Based Targets that will enhance our operations, Scope 1 and 2 emissions goals, and establish first-time decarbonization goals related to our products, which we will announce later this year. With that, I will turn it over to Oddone to take you through our financial results. Oddone? Thank you, Scott Wine, good morning, good afternoon to everyone on the call. Fourth quarter net sales from industrial activities of nearly $6.4 billion were up over 27% net of adverse effects impacts. Full year net sales of industrial activities of $21.5 billion were up 21% or over 24% at constant currency. Continued price adjustments were significant drivers for our top line growth in the quarter, volume and mix also accounted for around 15% sales increase from Q4 2021. For our industrial segments, fourth quarter gross margin was 21.7% and 22.2% for the full year. The year-over-year margin improvement of 1.5 points is mainly due to strong and profitable growth in South America and disciplined price realization globally, which more than offset rising production costs. Q4 Adjusted EBIT came in at $680 million, up $302 million from 2021, with a corresponding EBIT margin of 10.7% at 310 basis points improvement versus prior year. Full year Adjusted EBIT of industrial activities was $2.4 billion with a margin of 11.3%, up 140 basis points from 2021. Free cash flow from industrial activities was $1.6 billion in 2022, which turned our initial industrial activities net debt into a net cash position of $362 million at the end of the year, as Scott discussed in his introductory slide. Adjusted net income for the quarter was $486 million, up $61 million compared to prior year. This resulted in Adjusted EPS of $0.36, up $0.05 year-over-year. Full-year Adjusted EPS was $1.46. Adjusted net income for the quarter was affected by a higher tax rate due to discrete items booked in Q4. The full-year adjusted effective tax rate was about 28%, mainly due to the jurisdictional mix of pre-tax profits, with higher rates coming from South America. We will likely see the tax rate a point or two lower in 2023. Available liquidity as of December 31 was $10.6 billion. At the annual general meeting, the board of CNH Industrial is planning to recommend an annual cash dividend of $0.36 per common share, totaling a little over $500 million in distribution to shareholders. In the fourth quarter, strong volumes and double-digit price realization continued to shield us from the steep increase in production costs. R&D and SG&A expenses were higher, tied to technology investments, inflation, and newly acquired businesses. Energy costs increased year-over-year, but still accounted for about half a percentage point of our total production costs worldwide. Agricultural Adjusted EBIT increased by $287 million to reach $701 million with a margin of 13.1%, up more than 300 basis points from the same quarter in 2021. The higher profits were driven by higher volumes and favorable pricing, which offset higher product costs, SG&A, and R&D expenses. Gross profit was at $394 million compared to Q4 2021, exceeding $1.2 billion with a margin of 13.1%. For the full year, gross profit was up at $989 million, or up 140 basis points from 2021, largely driven by strong price realization coming from all regions and better product mix, including margin-rich technology-related sales growing by about 32%. Construction equipment Adjusted EBIT for Q4 increased by $14 million compared to Q4 2021, reaching $34 million with a margin of 3.5%. These results were driven by favorable volume and positive price realization, production costs, including strike-related costs, were an outsized headwind for the business. Gross profit across the year was up $82 million compared to the full year 2021, mainly due to higher volumes and stronger pricing. For our financial service business, net income in the fourth quarter was $75 million, down $50 million compared to 2021. Factors include high risk costs, provisions linked to the termination of the construction business in China, increased labor costs, and compressed margin in North America, slightly mitigated by robust volumes across all regions, as well as high recovery of used equipment. Retail originations were $2.9 billion in the quarter, reaching $10 billion for the year, up to $100 million from 2021. The managed portfolio at the end of 2022 was $23.8 billion, up $4 billion on a constant currency basis. Delinquencies remain at a low level, up 10 basis points year-over-year to 1.3%. The increase from December 2021 is explained by the sourcing of the revolving credit account portfolio that was purchased in October 2022. CNH Industrial Capital America acquired the receivables previously held by Citi on a private label program that will now be run and booked by our company. Free cash flow from Industry Activities in the quarter was over $2 billion on the back of a $1.5 billion change in working capital, driven in large part by the reduction of manufacturing inventory, as we mentioned before. At the end of the year, the total gross debt for Industry Activity was $5 billion, with a net cash position of $362 million. Within the first year of the spin-off, we were able to improve our net financial position by $1.5 billion on the back of the cash generated by the operations. This takes to our capital allocation priorities, and we have target spending $4.4 billion in combined R&D and CapEx over the 2022, 2024 plan period, almost doubling what we were spending in the previous three years. In 2022, we spent the first $1.3 billion of that, and we remain committed to investing in our business to fuel profitable growth. We are confident the products and services we will bring to the market with this spending will ensure higher financial performance in the near future, and more importantly, higher efficiencies to our customers. Strong cash generations helps us maintaining our investment-grade rating, which has been reaffirmed or improved by all the rating agencies after the spin-off. We returned nearly $600 million to shareholders in 2022 through dividends and share repurchases. As mentioned earlier, we proposed, the proposed 2023 dividend itself will total above $500 million, and we plan continuing our share buyback program. We have the liquidity to fund inorganic growth, and you are seeing us use the Ventures arm for minority investments when opportunity arise. We remain committed to our capital allocation strategy and focus on maximizing value for our shareholders. This concludes my prepared remarks, and I would now turn it back to Scott. Thank you, Oddone. Overall, demand continues to outstrip the industry's ability to supply, at least in the near term, which despite record sales, has actually dampened industry levels. Soft commodity prices are trending down, but they are still generally above pre-2022 levels. Fortunately for farmers, fertilizer and other input costs are dropping as well. In North America, elevated farm incomes are sustaining demand for high horsepower tractors and combines, while small tractor demand has slowed from the lofty levels seen over the past two years. We see the European Ag industry flattening as the macro environment starts to impact equipment demand there. South America and Brazil in particular is a very good market for us. The business conditions in Brazil are in flux following a presidential election, we believe that the fundamentals are still positive for agriculture in the region. We also see good long-term opportunities in APAC. This year will likely be slightly down. In construction, global demand is trending lower. We expect residential and commercial markets in North America and Europe to decline in 2023 due to rising interest rates. However, public construction spending at least partially fill in those gaps in the United States. In Europe and South America, construction markets will be down in reaction to the overall macro environment. We expect net sales of Industrial Activities to increase 6%-10%. With confidence in the stickiness of our 2022 price increases, we expect to build on our margin gains by taking more cost out of our system. We are committed to growing market share. We have the products, brands, and dealer network to do just that. Returning to full production in our North American plants will also help. Our SG&A as a% of sales remains one of the lowest in the industry. Despite inflationary pressures, we will severely limit SG&A growth. Free cash flow will be between $1.3 billion and $1.5 billion, a little lower than last year, as we have earmarked $1.6 billion for R&D and CapEx, up about $300 million from 2022. Even accounting for the increased R&D costs, our EBIT is projected to grow slightly faster than our top line. We are becoming a simpler, leaner company every day and expect to modestly improve our industrial margins throughout the year. Earlier today, we announced that our board of directors has determined that our shareholders will be best served by a single listing in the U.S. The majority of our trading in CNH Industrial stock has been shifting to the New York Stock Exchange since the spin-off of the Iveco Group, revealing that CNH's new business profile and investor base better fit with a single New York Stock Exchange listing. Concentrating trading in one market will allow for increased liquidity of our stock, improve investor focus, further simplify the company's profile, enable broader index inclusion, and attract more passive investors. The current Italian regulations only permit the delisting of stocks when they are or will be listed on another EU exchange. By definition, the New York Stock Exchange does not qualify. CNH Industrial has an open dialogue with Borsa Italiana Euronext, and we told them of our intention to leave the European listing. The harmonization and modernization of the Italian financial system, which is underway, is expected to include the New York Stock Exchange as an acceptable exchange. This is our preferred path for a smooth delisting from Euronext Milan, but not the only option if this becomes untimely. We are targeting sole trading on the NYSE by the end of 2023, but that could shift into 2024, depending on the timing of the regulation change. Rest assured, we will delist as soon as it is legally possible. At this point, we do not intend to change our incorporation in the Netherlands or our tax domicile in the UK as part of the single listing. Therefore, we do not expect any material tax or trading consequences for our shareholders. Our board of directors and management team are grateful to Euronext Milan for being our listing venue for the past 10 years and excited about the company's full return to the NYSE. I wanna stress that this does not change the company's long-standing commitment to Italy and the Italian market. CNH employs over 5,000 people in Italy, made a significant investment with Sampierana acquisition in late 2021, opened its fifth plant in the country in 2022. We also have three R&D centers in Italy, developing products that are sold around the world. While the delisting is another step in our corporate simplification, real value creation comes from the business. We are now taking orders into Q4 in some markets, and overall demand remains strong. The uncertain macro environment, especially toward the end of 2023, requires vigilance as we strive to support our customers, dealers, suppliers and employees. We expect to escalate combined CapEx and R&D investment as we launch exciting new products and build out the tech stack. We have already introduced some Raven-enabled products and will unveil more in 2023, but the real payoff for these higher-margin precision solution kicks in 2024. We are happy to have finally secured a contract with the UAW in North America. The agreement we reached is fair for our employees and sustainable for the company. Employees returned to work this week, and we expect the two affected plants to ramp up to full production in the coming months. While the pace of inflation is slowing, it is still inflation, and we expect it to have an impact on our manufacturing, energy, SG&A, and R&D costs in 2023. On a more positive note, we are seeing modest supply chain improvements. Our primary margin improvement initiatives, strategic sourcing and CBS, will start to yield results in 2023. I wanna close by emphasizing again how proud I am of the team for what they have accomplished and ensure you that we are ready to do even more in 2023. That concludes our prepared remarks, and I will now turn the call over to Serge to open the line for questions. Thank you, sir. Ladies and gentlemen, if you wish to ask a question at this time, please signal by pressing star one on your telephone keypad. If you find that your question has already been answered, you may remove yourself from the queue by pressing star two. Please make sure the mute function on your phone is switched off to allow your signal to reach our equipment. Thank you. Our first question comes from Kristen Owen from Oppenheimer. Please go ahead. Hi. Good morning. Thank you for the question. Scott, you talked about some of the industry demand outlook for 2023, but I was wondering if you could comment more on, some of the order book trends that were outlined in the press release. You know, if I recall, last quarter you talked about some of the year-over-year declines being driven more by your intentional decision to keep order books relatively short. How far are you open now? Maybe just say more about how you view demand versus order levels for 2023. Yeah. You know, as we talked about, the macro environment is, you know, it's choppy a little bit. You see that in everything you read. You know, our order books really are not open. We haven't opened up Q4 in any markets yet, and we still are allocating. A lot of what's happening in the order book is our choice to allocate markets. I mean, I'm not proud of the fact, you know, we have not delivered on a timely manner in much of 2022. The, the one market where we've been very clear is down is low horsepower tractors. We are seeing softness there. I mentioned, I referred to, you know, the political situation in Brazil. It's really just taking farmers, I think, are just taking a pause. We think the fundamentals in that market are incredibly strong. The world needs that agriculture production, and they need equipment in order to do that. We're just watching that very closely. Overall, you know, Europe is, you know, a little bit, slightly down, but we feel good about, you know, our ability to execute and keep that market relatively flat to the way it was in 2022. You know, overall, I think the demand environment is better than I would have expected to be at this point. You know, we're really, I mean, gonna re-running our factories as fast as we can, as much as we can through the year. Just being careful as we look at the fourth quarter. The fourth quarter is where, you know, we are being cautious at this point. We don't have orders for that yet, but where we have, you know, talked about it, I think we could open that up and probably book it, very quickly. Okay. That's helpful. Just as a follow-up to that question, just how you're thinking about dealer inventory levels exiting 2023. Do you expect to produce in line with dealer inventories build? Just any comments you have there? Yeah. We are still, you know, again, with the exception of low horsepower tractors. We are still below historical levels, and really, quite frankly, still below where most of our dealers would like us to be with dealer inventory. We're gonna work to catch that up. We do not plan to get back to historical levels. We'd like to keep inventory relatively lean. It's careful balancing there because you're running as fast as you can, to provide shipments, and the market's gonna slow down at some point. No, we are not looking to push a lot more dealer inventory into the channel. We've got, you know, some dealer build that we've got to do just to give them acceptable levels of inventory. you know, our goal, and part of, you know, what we're watching for is to make sure we protect dealer inventories going into 2024. Great. Thank you. Thank you. Our next question comes from Steven Fisher from UBS. Please go ahead. Thanks. Good morning. Just on the Q4 order book point, just curious, Scott, why haven't you opened up the order books yet? What will you need to see to fully open them up for Q4? Steven, it really refers to, and again, I'm not proud of the fact, just our inability to deliver, in a timely manner. I mean, we've got a backlog, especially on our high horsepower tractors that is quite long. I think we're just trying to get more confidence in our ability to deliver. You know, we again, inflation is not rising anymore, but it's still out there. We also are making sure we manage our costs. Derek and Stefano are really doing a nice job of managing cost inputs in their business. You know, it's really that making sure we balance the cost price equation. You've seen from our history we're really good at doing that. Also ensure that we can deliver when we say we're gonna deliver if we open up the books. Okay, that's fair. I guess in terms of the ag margins for 2023, can you maybe just give us any color on the puts and takes there? I imagine there were a number of inefficiencies in production in 2022 due to the strike and the supply chain. You have precision ag mix should be helpful, I would think, for 2023. Can you talk about some of those puts and takes and then what you're expecting for price versus cost in 2023? Let me take this, Steve. Yes, you pretty got it. I mean, we expect 2023 to be a play of cost, more than a play of pricing. We expect still to be positive price over cost, as we have been throughout 2022, but the big game will be in getting cost out of the production system and reducing cost onto the production systems. That's a combination of having a smoother supply chain, a more organized cadence, and possibly getting some improvement from our strategic sourcing program. That probably will kick in more at the end of the year rather than the beginning of the year. That's what we're looking at. We have some carryover pricing for 2022 still coming in. You mentioned as well, growing sales in tech, which have generally a higher margin than the pure equipment. Okay. Thank you. Thank you. Our next question comes from David Raso from Evercore ISI. Please go ahead. Hi. Thank you. I'm just trying to square up the implied volumes. I mean, you look at the price, sorry, the revenue guide of the 8%. I mean, currency shouldn't be that much of a drag at these levels. It looks like it's mostly just price in the revenue guide. Is that the right way to interpret it, that basically volumes are flat? If that is the case, if you can give us a little flavor where volume's up versus down, just so we kind of square up any chance of overhead absorption. Volumes are up slightly, modestly. I don't know, slightly modestly define that, but it's, you know, low single digits. You know, North America is really where we see the greatest strength and where we see the biggest backlog and where we've got the most work to do. I think that'll be the volume play. To a great extent. You know, the rest of there's still lots of work to do to deliver in other areas of the world. But that really will be where most of the volume comes from. That's more of a large ag comment? I know the units are bigger in scale. No, you got it. You got it. It's high horsepower tractors and combines in that order. Adoni, the comment about, you know, steel, more about steel than price. Just so I understand what you're implying there. We still think our steel costs are up year-over-year more than price. It's all wrapped in a thought around, do we think gross margins can expand in 2023? I just wanna make sure I understand. I- gross margin comment. I'm sorry if I wasn't clear. I was talking about cost, so price over cost, in general. Cost includes raw material, but the general production cost, so all of our production costs. Price cost expected to be positive for the year to margin? Yes. Neutral to margin? Yes. Positive margin. Positive. If volume's up a little bit and price cost should be net positive to margin, I assume we can infer from that gross margins are expected to expand as well as. Yes. SG&A grow slower than sales growth, with at least that was in the guide. Is that correct? That is exactly correct. What we're looking at. All right. Thank you so much. I appreciate the detail on the delisting. Thank you. Now our next question comes from Jamie Cook from Credit Suisse. Please go ahead. Hi, good morning. Nice quarter. I guess just two questions. You know, Scott, you know, given the performance that you've put up, the positive financial performance you've put up, can you talk about how you're thinking about the ag cycle and, like, the implications for your 2024 financial targets, whether you think there's upside there? I guess my second question, just an update on Raven and where we are relative to your synergy targets. Thank you. Okay. Well, you know, first of all, if you go back a year to Capital Markets Day, you know, we're obviously much. 2022 played out significantly better than we expected. Unfortunately some of that driven by soft commodity prices impacted by the war in Ukraine, which we couldn't have anticipated. Overall, 2022 and then as we look at 2023, are both better than we had anticipated from that. That's really market related. Our performance is actually doing quite well. As we look at our 2024 targets, you know, we obviously feel like we're on a path to do better in some areas, but we've got work to do in some areas. We feel like, you know, generally speaking, you know, we set ambitious targets and we're on path to hit those. You know, we are. I don't wanna be a pessimist, but I just think 2024 could be, you know, we talked about it, could be a more difficult year. The ag cycle, though, as I talked about in my prepared remarks, you know, soft commodity prices are still at relatively good levels and it looks like, you know, that could hold and farmer income, you know, is still at elevated levels and their reluctance to pay taxes and therefore the desire to buy equipment still makes a good setup for the ag cycle. It won't stay positive forever, you know, we feel like, you know, right now, you know, we're not about to call that starting to turn negative in 2023. As far as Raven concerned, I'm honestly not sure I could be more positive on how well that integration has gone. You know, we committed to a reverse integration because we like the team and we like the culture. Our team has embraced that. You know, we are, we are learning from their agile, customer-focused system, and we're building on that, giving them the tools and resources. We've done a tremendous amount of hiring. Really it's, we've talked about the new Patriot sprayer that we brought out with full Raven capability. We'll embed their tools in everything that we can going forward. Really integrating them into our tech stack is where the real value unlock is. Huge aftermarket opportunities there, retrofit opportunities in Raven. You know, overall I'm just really pleased with how the team, both the Raven team and our team have done to bring value, and overdrive on our synergy targets. Thank you. We'll now move to our next question from Dillon Cumming from Morgan Stanley. Please go ahead. Great. Good morning, guys. Thanks for the question. Just wanted to ask on some of the more idiosyncratic margin improvement opportunities you mentioned. You called out the sourcing program and CBS starting to ramp in the quarter. I know Oddone mentioned it would still be a bit more back half-weighted, but can you just maybe earmark kind of how much more of an opportunity that could be on more of a dollar basis or margin basis? Just trying to get a sense of, you know, kind of quantifying what that tailwind could be next year. Yeah. Well, you remember, we actually are not. Our CBS and lean initiatives are not starting from nothing. We've got a great history with WCM employing lean tools throughout the plant network. You know, what we're looking to do is how do we deploy that in other areas of the business and accelerate it in the plants? I think that's what you'll see taking shape this year. You know, obviously the opportunity is quite significant. You know what the teams are working on now is how do we just push back the cost input using various lean tools to get back to where costs were pre-pandemic? You know, that's a lot of heavy lifting. You know, Oddone referred to it. You know, 2022 was a year to price and 2023 is gonna be a year of cost. Focus and our lean tools will be a significant way that we get after that. But more importantly, it's a way we get after delivering value for customers. It's not about just taking cost out. We're gonna use those tools to make quality better, to make delivery better, and overall help us expand margins. That, that's, I wouldn't say short term, but we can do those that we did some of that work in 2022, we're accelerating the work in 2023. A great opportunity across the business to use those tools to create value and expand margins. Strategic sourcing is a longer in the tooth program. It's probably got kicked off last summer and fall. You know, we've got a strong team working through it. You know, that will show some results later this year, but really start to drive notable margin expansion in 2024 and beyond. Both of those, I would say more near-term opportunities with our CBS initiatives, more significant long-term opportunities with strategic sourcing. Okay. That's helpful color. Thanks, Scott. Just my follow-up on the precision ag revenue target. I think at Donay, you mentioned that you exited the year up 32%. You know, you were originally guiding at the tech day to up 11% in 2023. I know it's still a fairly recent target, but just given that exit rate, would you kind of consider any upside to that billion-dollar target for 2023 at this point? I will stick to that target for the time being. Great. Thank you. The next question comes from Tami Zakaria from J.P. Morgan. Please go ahead. Hi. Good morning. Thank you so much. Just to get some color on the volume expectation of low single digit, is that higher for Ag, call it mid-single digit, but negative for construction, so that nets out to a low single-digit growth for the overall company? Is that how we should be thinking about it? No, no. It's actually, you know, the construction business and backlog is quite good. You know, despite, a difficult overall environment, you know, we had so many limitations last year, in our ability to produce, that business is actually reasonably good. Both businesses will have positive volume in 2023. Got it. That's super helpful. second question, what kind of incremental margin should we expect in ag and construction segment, this year? I mean, in line with what the kind of incremental margins that we have had over time, no big difference from that. Probably a little bit more on construction, because construction was more affected by some of the cost headwinds this year. But for ag, I will be pretty much in line with what we have had in the past. Got it. Thank you so much. Now our next question comes from Mig Dobre from Baird. Please go ahead. Good morning. Following up on construction here, I'm wondering if you can give us maybe a little more context around the order book here and the declines that we've seen in both heavy and light equipment. Are you limiting the order book in construction, similarly to what you've done with ag? I'm also kind of curious in your own outlook for 2023 for the industry, you know, you seem arguably a little more pessimistic than some of your peers, when framing 2023. Again, color on that would be helpful as well. I didn't obviously was busy this week, but I didn't really digest the Cat numbers overall, but I don't remember them being overly positive on 2023. I think we're somewhat in line with that was on the construction side. We're really underserving our dealer network with heavy excavators, and we're working diligently to improve that. You know, that's a significant opportunity for us. You know, that's where, you know, some of the backlog reduction has been just 'cause we cannot deliver in that area. On the light side, you know, we've got just really good progress with Sampierana. We'll start to bring, you know, expand the markets where we can serve with that. South America was very strong for construction last year. We don't expect that to repeat. That, that market will be a little bit, from a construction side, be a little bit lighter than it was last year. Overall, again, it's gonna be a positive year. Stefano and his team are doing a nice job with that business, and we like where it's going, and it's got a long, a long range upside for sure in that business. Okay. If, if I can try the price cost question as well. Looking on a consolidated basis, it looks like you've had positive price cost of about $180 million the past couple of quarters. As you contemplate 2023, I'm wondering if this figure holds or if we should expect any significant variance from that. No, directionally, we expect to be positive price cost in 2023 as well. I wouldn't take much different view of what we're seeing. I mean, absolute terms is gonna be different, but I wouldn't take a much different view of what we're seeing throughout 2022. Appreciate it. Our next question comes from Marta Bruska from Berenberg. Please go ahead. Hi. Good afternoon. Thank you for taking my question. If you don't mind, please, it would be helpful to hear your thoughts on the pricing environment and raw materials going forward from a bit different angle. Specifically, you know, given the industry in the past, some of your competitors would hand out steel discounts while the raw materials start to normalize a little bit, you know, to my understanding, haven't been the case in 2022 despite the already positive, you know, base effect versus the prior year. I was just wondering whether you see anything at all that would suggest that this should change in 2023, or what's the risk of some of your competitors, you know, handing out steel discounts to the dealer, and how would you react to that? I have one more, please. We are still expecting inflation to impact our business and therefore our supply chain in 2023 to a lesser extent than it did in 2022. A declining rate of inflation but still seeing inflation. We've seen a decrease in some areas, but overall the cost that we're paying is not coming down. We don't intend and in fact, you know, we're still gonna have to price going into 2023 again at lower levels because of the lower increases. We don't see a decrease in pricing and that, you know, again, the quality and innovation that we're putting in our products would suggest that we don't need to go start competing on price. I think the industry overall is likely gonna take that approach. Perfect. Thank you. Then, I was just wondering, with all the big tech, you know, cutting the workforce, were you able to benefit from the opportunity to tap into the tech talent pool, for your precision ag, kind of hiring, pool, please? you know, that's actually something I've been pushing the team on for quite some time. I mean, we've, we have done significant hiring with our technical team, precision and autonomy. you know, many of the layoffs are not actually the programmers and engineers, so we don't really see that as an opportunity. you know, we did most of our hiring in we'll probably slow down a little bit, but, you know, to the extent that we can bring on great talent at more reasonable prices because of what others are doing. you know, certainly, our commitment to accelerating value that our customers get from precision and autonomy is there. you know, we are continuing to hire in 2023. But no, there's not a significant opportunity for us there just because of where we're hiring and where those, most of those employees are located. Very clear. Thank you. Thank you. Our next question comes from Nicole DeBlase from Deutsche Bank. Please go ahead. Yeah, thanks. Good morning, guys. Morning. Can we just start by talking a little bit about what you're seeing with respect to used equipment values? Any signs of moderation at all from such high levels in 2022 within ag or construction? Used values are still hanging in there just again because availability. I'm not talking about low horsepower tractors because that's a different scenario, and we've seen that market stabilize at a lower. At the high horsepower side, and large ag, you know, we're still not seeing large fleets anywhere in the OEM side or in the used side, so prices are staying reasonably high. Okay, got it. Thank you. Just thinking about the quarterly cadence of earnings throughout 2023 versus normal seasonality, I would kind of suspect that you would see a return to normal seasonality, but if there's anything you guys want to comment on to think about throughout the year, that would be helpful. Thanks. I would say we'll go back to the normal seasonality, which sort of we have seen in 2022 as well, between, you know, production and retail sales. I would say, yeah, going back to the normal. Thank you. I'll pass it on. Thank you. We'll now take our next question from Timothy Thein from Citi. Please go ahead. Yeah, thank you. first, Scott, it's interesting these, I think these order aboard comments in the release have kind of taken a life of their own. I'm just curious, how does Derek and team interpret that? you know, there's so much, seems to be so much noise just in terms of how the world has unfolded over the last year or so and how you and others have shifted to an allocation mode. Just really getting at the underlying significance of these order boards in light of just all the issues around timing of deliveries and meaning, you know, how significant are they? Is I guess the nature of the question. Yeah. I would if I could call Derek up and get him on the call, I think you'd hear a much more positive tone from him than how I think you're reading it. You know, obviously, that was a, you know, we're coming off, you know, an unprecedented demand, and I think we're seeing, you know, regional changes in that. Overall, the net portfolios are still, you know, reasonably good. You know, the collection, what used to have is you'd open up a book, and you'd fill it off in an hour, and we still see that in some markets. You know, generally speaking, it's, it's slowing a little bit in Europe and in low horsepower tractors in almost all markets. You know, overall, I mean, I think a lot of what we're seeing, you know, we didn't expect it, but the Lula election in Brazil really caused a lot of pause for farmers in the region. That had been, has been so good for us, and we expect it to be, but it's taken, I will call it a pause, in orders there. You know, overall, that market, you know, having just been there recently is very strong. I think it's just a matter of timing, and we're trying to manage that appropriately. You know, I think, Derek's managing the business extremely well, as you've seen by the execution. That includes on the sales side to make sure that orders and retail orders come through. He's not at all, sounding an alarm. He's just putting the right measures in place to make sure that, you know, we deliver on a solid year in 2023. Got it. Got it. In back to your earlier comments about just dealer... I think we can all, you know, the low horsepower market weakness I think is pretty well telegraphed and known at this point. Just again, sticking to large ag, obviously far more significant from a bottom line perspective for CNH. Just the notion that any sort of dealer stocking or restocking is likely not happening in 2023. Presumably that could pose some tailwind as we, you know, 2024 is a long ways off, but that's still in front of the company as a whole. Is that a fair takeaway? I think some markets will get, you know, back to reasonable levels of inventory, but I just don't like. I mean, we want to be, you know, our goal, our intent is to make sure as we manage and protect our own cash flow, that we do the same for our dealers. You know, that takes discipline to do, and that's the discipline that we're gonna have as we go through this. You know, the end of the year was a little bit tricky for us because there was so much very good work done to complete this, you know, significant fleet inventories we had literally all over the world, where we just were missing components, and we needed to finish those, get them built and tested out to dealers. The team did a really nice job with that, but it happened so much at the very end of the quarter. We ended up with more inventory in some places that has retail orders. The customers are gonna pick it up right away. We just didn't get it there in time for that to happen. I think the end of the year inventories, you know, aren't really telling a great story, especially in North American market where, you know, that was significant. Overall, you know, we feel like, you know, there's just a tremendous opportunity for us to, you know, keep our factories running and produce for retail customers at this point, and possibly at the end of the year, you know, start to get dealer inventories, you know, back. When I say back up, I mean it's up to acceptable levels, not up to historical levels. All righty. Thank you. Our next question comes from Michael Feniger from Bank of America. Please go ahead. Hey, Scott. Thanks for taking my questions. I believe you phrased it as 2022 was a year of price, 2023 is a year of cost. Just so I understand this a little bit more, you know, if we look at 2022, can you quantify some of the costs embedded in the model attributed to premium freight, transportation, just buckets that, like, cyclically won't be as elevated in 2023? Well, you hit a big one, which we've already seen start to come down, being transportation costs, you know, just the cargo boxes, all of that stuff. We've seen that start to give way. The way our contracts are, we don't always see it, you know, right away. Nonetheless, that is, that's one. Overall, you know, we're just not seeing the spike in prices. Again, inflation's there. We're dealing with it. I think the team's, you know, proven our ability to manage that. You know, semiconductors have also come down. That's at a much more reasonable or, I guess, acceptable level for us. Overall, prices are going to be higher for us in 2023. When I talk about, when we're looking at the entire business portfolio and saying, you know, what costs have we incurred through the pandemic and then the response to the pandemic, where we had to ramp up so quickly to deliver customer orders? How do we get back to running the business very efficiently? You know, that's the work. When we talk about cost, it's getting after that efficiency in all aspects of the business that we might have lost a little bit of during the last couple of years. Understood. I know we just went through the order board comment, but you did also make a comment earlier, I think it was to Jamie Cook, about 2024 could be a more difficult year. Many economists actually think 2024 could We can see in the global economy expanding. I just wanted to narrow in on that a little bit. Why do you think 2024 could just become a more challenging year as you said? Well, remember, we are significantly more exposed to the ag cycle than we are to global GDP. you know, we call it an ag cycle for a reason, which means that it's not a flat line, and it doesn't go in one direction forever. you know, we've had a very high market. I'm not actually not at all talking about a peak here, but I'm just saying we've had a very strong market here, and I'm acknowledging with other global inputs that may at some point impact ag demand. You know, 2024 may be a year that isn't as strong as others. I mean, I think that's. Understood. That's not a negative comment. It's just a fact, actually. All right. Understood, Scott. Just to squeeze one last in, like you did see this inflection in your industrial net debt ahead of time. It was from some of the cash generation from the business in 2022. Just I know you're aggressively investing in the business. You know, how can we think about the fact that you inflected on your industrial net debt ahead of time, and how should we think about that in terms of potentially, you know, share repurchases to kind of close maybe your valuation discount to peers, how you kind of look at that? I know you're aggressively investing in R&D and CapEx, but just that lever to pull, how are you thinking of that? Let me take this one. We set very clear capital allocation priorities. We say that we are investing more in R&D, as you pointed out. We step up our dividend. In 2022, we went back in doing share repurchases at levels that probably we hadn't done in the past. We want to continue doing share repurchases in 2023. That's part of the mix that we have in there. We also wanna have some availability for some sort of M&A, particularly in the tech space, if that helps our profitable growth there. Thank you. Thank you all. Now we have time for one final question. Jerry Revich from Goldman Sachs, please go ahead. Hi. Thanks very much for fitting my last question in. I guess I just wanted to touch on cash. Your guidance for 2023 sort of sees the weaker cash conversion, I was wondering maybe you could just comment a bit more on what you're seeing there and sort of what the moving parts are. Thank you. Yeah. Again, I'll use the opportunity answering your question just to thank the team for delivering such strong cash flow in the fourth quarter, which, you know, gave us a reasonable as a result for the year. You know, we're expecting another, you know, billion-dollar-plus, I think the $1.3 billion-$1.5 billion range of cash flow in 2023. We are spending several hundred million dollars more in CapEx. You know, again, part of our strategy is bringing new products to market, that do allow us to have higher profit, higher gross margins and gain market share. Those things don't come free, so, you know, we're gonna spend more money to get that, and that's the really the key driving factor of it. We'll still be disciplined with inventories and managing that, but that will be the differentiator between year-over-year cash flow generation. Clear. Thank you. Thank you. This concludes today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.