Iveco N : Iveco Group 2022 Second Quarter Results

2022 Second Quarter Results(1)(2)

(all amounts € million, unless otherwise stated - comparison vs Q2 2021)

EARNINGS

PRESS RELEASE

Turin, 28th July 2022

Iveco Group 2022 Second Quarter Results

Iveco Group consolidated revenues of €3.4 billion (up ~2% year on year).

Adjusted net income of €60 million and adjusted EBIT of €118 million.

Net cash of Industrial Activities at €625 million.

"As we anticipated, the second quarter was fiercely challenged by continued supply chain issues, raw material and energy cost increases, and political instability. And yet, this didn't stop us in both running our business effectively and strengthening our partnership network. We achieved a remarkable €118 million of Adjusted EBIT, mainly driven by solid industrial activity performance and higher profitability in our captive financial business, and our book-to-bill is decidedly positive, showing that the demand for our products remains strong across the board. On the partnership side, we forged close ties with Eni on several programmes, and just lately we announced the supply of fuel cells by HTWO, a Hyundai brand, for our future hydrogen buses. All in all we are on track, delivering sound results and running the industrial machine at the right pace: we have now built the fleet we need to swiftly supply our customers, in the coming months and across all segments, with the vehicles and engines they demand."

Gerrit Marx, Chief Executive Officer

	EU-IFRS FINANCIAL MEASURES					NON IFRS FINANCIAL MEASURES (3)
	Consolidated revenues	3,371	+1.5%				Adjusted EBIT	118	-8
	of which Net revenues of Industrial Activities	3,329	+1.1%				of which Adjusted EBIT of Industrial Activities	91	-19
	Profit/(loss) for the period		-40				Adjusted net income		-17
	36				60
	Diluted EPS €		-0.14				Adjusted diluted EPS €		-0.06
	0.11				0.20
	Cash flow from operating activities		-262				Free cash flow of Industrial Activities		-293
	113				(111)
	Cash and cash equivalents		-307 (*)				Available liquidity		+105	(*)
	1,431				3,495

(*) comparison vs 31st March 2022

Consolidated revenues of €3,371 million, up 1.5%. Net revenues of Industrial Activities of €3,329 million, up 1.1%, mainly due to strong positive price realization.

Adjusted EBIT of €118 million (€126 million in Q2 2021), with a 3.5% margin (3.8% margin in Q2 2021). Adjusted EBIT of Industrial Activities of €91 million (€110 million in Q2 2021), with positive price realization close to offset higher raw material and energy cost.

Adjusted net income of €60 million (adjusted net income of €77 million in Q2 2021), which excludes a negative after-tax impact of €15 million from the first time adoption of the hyperinflationary accounting in Turkey. Adjusted diluted earnings per share of €0.20 (adjusted diluted earnings per share of €0.26 in Q2 2021).

Reported income tax expense of €29 million, with adjusted effective tax rate (adjusted ETR(3)) of 33% in Q2 2022 (35% in H1 2022). The adjusted ETR reflects the different tax rates applied in the jurisdictions where the Group operates and other discrete items.

Net cash of Industrial Activities(3) at €625 million (€1,063 million at 31st December 2021 or €765 million at 31st March 2022). Free cash flow of Industrial Activities was negative €111 million, €293 million lower compared to Q2 2021 due to working capital absorption deriving from the impact of component shortages on inventory level and lower production vs Q2 2021.

Available liquidity at €3,495 million as of 30th June 2022, up €105 million from 31st March 2022, including €2,000 million of undrawn committed facilities.

In April, Iveco Group and Eni signed a Letter of Intent to explore potential cooperation on sustainable mobility initiatives in the commercial vehicle sector in Europe and accelerate the decarbonisation of transport. In May, Iveco

Group, CNH Industrial and Eni signed a Memorandum of Understanding for potential joint social development initiatives in countries of common interest in the areas of agriculture, sustainable mobility and education. In June, the Company announced plans to restart production of buses in Italy. In July, FPT Industrial and Blue Energy Motors signed an agreement to introduce the first Liquified Natural Gas trucks powered by FPT 6.7-liter engines on Indian roads by the end of 2022. In the same month, Iveco Group, through its brand IVECO BUS, announced that it will partner with Hyundai Motor Group to equip its future European hydrogen-powered buses with world-leading fuel cell systems.

2022 Outlook(*)

The Company expects global supply chain to continue to represent the main challenge for the year, with increased cost and availability of energy, raw material price increases and components availability.

Based on current visibility, the Company is providing the following 2022 preliminary financial outlook:

1. • Consolidated Adjusted EBIT between €400 million and €420 million
   • Net revenues of Industrial Activities(**) up from 3% to 4% versus full year 2021
   • SG&A costs of Industrial Activities lower than 6.5% of net revenues
   • Net cash of Industrial Activities at ~€1.2 billion.
2. A significant escalation or expansion of economic disruption due to COVID-19 pandemic, Russia / Ukraine war, supply chain issues, and energy price and supply could have a material adverse effect on Iveco Group financial results.
   (**) Including currency translation effects.

Notes, see page 4

Pag. 2

2022 Q2 Performance and Results by Segments

Iveco Group continued to record a solid quarterly performance despite the challenging environment, including global supply chain, which continues to represent the main challenge for our operations, raw material price increases, exacerbated by the ongoing Russia-Ukraine conflict(*), cost and availability of energy, and components availability.

Worldwide Trucks' order intake was down 10% year over year, with light duty trucks down 12%, and medium & heavy duty trucks down 7%, as a consequence of continuing to restrict the order slotting to manage the quality in the order books and the cost of inflation. Truck book-to-bill in Europe at 1.29.

1. Iveco Group has operations in both Russia and Ukraine. On 20th July, the Company executed a dissolution agreement with the Russian JV, IVECO AMT, also formally presenting its withdrawal from the legal entity. Accordingly, the Iveco Group stake (33.3%) was returned to IVECO AMT. Russia and Ukraine do not constitute a material portion of the Group business, however, the Group is closely monitoring the impact of the Russia-Ukraine conflict on its employees and all aspects of its business, the Group's results of operations, financial condition and cash flows.

Commercial and Specialty Vehicles
	Q2 2022	Q2 2021	Change		European truck market was down 18% year over year, with light-duty trucks ("LCV")
Net revenues					down 24%, and medium and heavy trucks ("M&H") down 2%. South American truck
				market was up 13% in LCV and down 5% in M&H. Bus registrations decreased 11%
(€ million)	2,790	2,673	+4.4%
	and 4% in Europe and in South America, respectively.
Adjusted EBIT					Net revenues were up 4.4%, primarily driven by positive price realization and
(€ million)	78	94	-16		increased volumes in bus in Europe and in trucks in South America, partially offset by
	lower truck volumes in Europe due to components shortage.
Adjusted EBIT
				Adjusted EBIT was €78 million (€94 million in Q2 2021), driven by higher product costs,
margin	2.8%	3.5%	-70	bps
mainly due to increased raw material and energy costs, partially offset by positive price
					realization. Adjusted EBIT margin at 2.8%.

Powertrain

			Q2 2022		Q2 2021	Change			Net revenues were down 4.5% due to lower volumes towards third parties. Sales to
										external customer accounted for 56% (60% in Q2 2021).
	Net revenues
									Adjusted EBIT was €47 million (€59 million in Q2 2021), mainly due to unfavorable
	(€ million)		1,023		1,071	-4.5%
					volume and mix. Positive price realization offset raw material and energy costs
	Adjusted EBIT									increase. Adjusted EBIT margin at 4.6%.
	(€ million)		47		59	-12
	Adjusted EBIT
	margin		4.6%		5.5%	-90	bps

Financial Services

			Q2 2022	Q2 2021	Change			Net revenues were up 33.3% compared to Q2 2021, mainly due to higher wholesale
									originations and higher base rates.
	Net revenues
								Adjusted EBIT increased €11 million to €27 million, primarily due to higher wholesale
	(€ million)		60		45	+33.3%
					portfolio and better collection performances on managed receivables.
	Adjusted EBIT								The managed portfolio (including unconsolidated joint ventures) was €5,706 million
	(€ million)		27		16	+11			at the end of the quarter (of which retail was 49% and wholesale 51%), up €460 million
					compared to 30th June 2021.
	Equity at								The receivable balance greater than 30 days past due as a percentage of portfolio was
	quarter-end
								3.6% (4.7% as of 30th June 2021).
	(€ million)		752		725	+27
	Retail loan
	originations
	(€ million)		313		387	-74

Pag. 3

Iveco Group 2022 First Half Results

Iveco Group consolidated revenues of €6.4 billion (up ~2% year on year).

Adjusted net income of €102 million and adjusted EBIT of €220 million.

2022 First Half Results(1)(2)

(all amounts € million, unless otherwise stated - comparison vs H1 2021)

	EU-IFRS FINANCIAL MEASURES						NON IFRS FINANCIAL MEASURES (3)
	Consolidated revenues	6,419	+1.6%					Adjusted EBIT	220	-40
	of which Net revenues of Industrial Activities	6,339	+1.3%					of which Adjusted EBIT of Industrial Activities	173	-53
	Profit/(loss) for the period	21	-122					Adjusted net income	102	-44
	Diluted EPS €	0.05	-0.41					Adjusted diluted EPS €	0.35	-0.12
	Cash flow from operating activities	12	-169					Free cash flow of Industrial Activities	(277)	-156
	Cash and cash equivalents	1,431	+534	(*)				Available liquidity	3,495	+2,059	(*)

(*) comparison vs 31st December 2021

Commercial and Specialty Vehicles

		H1 2022		H1 2021	Change
	Net revenues
	(€ million)	5,294	5,001	+5.9%
	Adjusted EBIT
	(€ million)	171	153	+18
	Adjusted EBIT
	margin	3.2%	3.1%	+10	bps

Powertrain

		H1 2022	H1 2021	Change
	Net revenues
	(€ million)	1,998	2,096	-4.7%
	Adjusted EBIT
	(€ million)	92	148	-56
	Adjusted EBIT
	margin	4.6%	7.1%	-250	bps

Financial Services

		H1 2022	H1 2021	Change
	Net revenues
	(€ million)	109	95	+14.7%
	Adjusted EBIT
	(€ million)	47	34	+13

Pag. 4

Notes

1. Iveco Group reports quarterly and annual consolidated financial results under EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with EU-IFRS.
2. On 1 January 2022 the demerger of CNH Industrial N.V. took legal effect. The 2021 figures presented in this press release relate to activities transferred to Iveco Group N.V. and are derived from CNH Industrial consolidated financial statements for the semi-annual of 2021 and for the year ended 31 December 2021.
3. Non-IFRSfinancial measures: refer to the "Non-IFRS Financial Information" section of this press release for information regarding non-IFRS financial measures. Refer to the specific table in the "Other Supplemental Financial Information" section of this press release for the reconciliation between the non-IFRS financial measure and the most comparable IFRS financial measure.

Non-IFRS Financial Information

Iveco Group monitors its operations through the use of several non-IFRS financial measures. Iveco Group's management believes that these non-IFRS financial measures provide useful and relevant information regarding its operating results and enhance the readers' ability to assess Iveco Group's financial performance and financial position. Management uses these non-IFRS measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-IFRS financial measures have no standardized meaning under EU-IFRS and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with EU-IFRS.

Iveco Group's non-IFRS financial measures are defined as follows:

• Adjusted EBIT: is defined as EBIT before restructuring costs and non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities.
• Adjusted Net Income/(Loss): is defined as profit/(loss) for the period, less restructuring costs and non-recurring items, after tax.
• Adjusted Diluted EPS: is computed by dividing Adjusted Net Income/(Loss) attributable to Iveco Group N.V. by a weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the Iveco Group share-based payment awards, when inclusion is not anti-dilutive. When we provide guidance for adjusted diluted EPS, we do not provide guidance on an earnings per share basis because the IFRS measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end.
• Adjusted Income Taxes: is defined as income taxes less the tax effect of restructuring expenses and non-recurring items, and non-recurring tax charges or benefits.
• Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing a) adjusted income taxes by b) profit (loss) before income taxes, less restructuring expenses and non-recurring items.
• Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total Debt plus Derivative liabilities, net of Cash and cash equivalents, Derivative assets and other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and financial receivables from CNH Industrial deriving from financing activities and sale of trade receivables. Iveco Group provides the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable EU-IFRS financial measure included in the Group's consolidated statement of financial position. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities.
• Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities, only, and is computed as consolidated cash flow from operating
  activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in property, plant and equipment and intangible assets; as well as other changes and intersegment eliminations.
• Available Liquidity: is defined as cash and cash equivalents, including restricted cash, undrawn medium-term unsecured committed facilities, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties), and financial receivables from CNH Industrial deriving from financing activities and sale of trade receivables.

Forward-looking statements

All statements other than statements of historical fact contained in this earning release, including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. Forward looking statements also include statements regarding the future performance of Iveco Group and its subsidiaries on a standalone basis. These statements may include terminology such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "outlook", "continue", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "prospects", "plan", or similar terminology. Forward-looking statements, including those related to the COVID-19 pandemic and Russia-Ukraine war, are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: the continued uncertainties related to the unknown duration and economic, operational and financial impacts of the global COVID-19 pandemic and the actions taken or contemplated by governmental authorities or others in connection with the pandemic on our business, our employees, customers and suppliers; supply chain disruptions, including delays caused by mandated shutdowns, industry capacity constraints, material availability, and global logistics delays and constraints; disruption caused by business responses to COVID-19, including remote working arrangements, which may create increased vulnerability to cybersecurity or data privacy incidents; our ability to execute business continuity plans as a result of COVID-19; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products, including demand uncertainty caused by COVID-19; general economic conditions in each of our markets, including the significant economic uncertainty and volatility caused by COVID-19; travel bans, border closures, other free movement restrictions, and the introduction of social distancing measures in our facilities may affect in the future our ability to operate as well as the ability of our suppliers and distributors to operate; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as agriculture, the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international

Pag. 5

trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; inflation and deflation; energy prices; our ability to obtain financing or to refinance existing debt; price pressure on new and used vehicles; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, follow-on private litigation in various jurisdictions after the settlement of the EU antitrust investigation of the Iveco Group announced on 19th July 2016, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of Iveco Group and its suppliers and dealers; security breaches with respect to our products; our pension plans and other post-employment obligations; further developments of the COVID-19 pandemic on our operations, supply chains, distribution network, as well as negative evolutions of the economic and financial conditions at global and regional levels; political and civil unrest; volatility and deterioration of capital and financial markets, including other pandemics, terrorist attacks in Europe and elsewhere; our ability to realize the anticipated benefits from our business initiatives as part of our strategic plan; our failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing.

Forward-looking statements are based upon assumptions relating to the factors described in this earnings release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside Iveco Group's control. Iveco Group expressly disclaims any intention or obligation to provide, update or revise any forward- looking statements in this announcement to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Further information concerning Iveco Group, including factors that potentially could materially affect Iveco Group's financial results, is included in Iveco Group's reports and filings with the Autoriteit Financiële Markten ("AFM").

About Iveco Group

Iveco Group N.V. (MI: IVG) is the home of unique people and brands that power your business and mission to advance a more sustainable society. The eight brands are

each a major force in its specific business: IVECO, a pioneering commercial vehicles brand that designs, manufactures, and markets heavy, medium, and light-duty trucks; FPT Industrial, a global leader in a vast array of advanced powertrain technologies in the agriculture, construction, marine, power generation, and commercial vehicles sectors; IVECO BUS and HEULIEZ, mass-transit and premium bus and coach brands; IDV, for highly-specialised defence and civil protection equipment; ASTRA, a leader in large-scaleheavy-duty quarry and construction vehicles; MAGIRUS, the industry-reputed firefighting vehicle and equipment manufacturer; and IVECO CAPITAL, the financing arm which supports them all. Iveco Group employs approximately 34,000 people around the world and has 28 manufacturing plants and 29 R&D centres. Further information is available on the Company's website www.ivecogroup.com

Conference Call and Webcast

Today, at 10:30 am CEST / 9:30 am BST, management will hold a conference call to present the second quarter and first half 2022 results to financial analysts and institutional investors. The call can be followed live online at Q2 2022_IVECO GROUP webcastand a recording will be available later on the Company's website www.ivecogroup.com. A presentation will be made available on the Company's website prior to the call.

Contacts

Media:	Investor Relations:
Francesco Polsinelli, Tel: [phone]	Federico Donati, Tel: [phone]
Fabio Lepore, Tel: [phone]	E-mail:[e-mail]
E-mail:[e-mail]