CNH Tech Day 2022 Notes
Date: Sept 5, 2024
Topic: CNH Tech Day 2022 Notes
Author: Handzalah
- Investment in Raven
- Unlocked value from acquisition (Raven) and expects to see more value in it
- Great at passing price to increase shareholders’ value
- 180+ years in business
- Autonomous technology
- Connected platform, automation, and autonomy
- Save $36 per acre from tillage process using their technology
- Planting segment increases 26% in yield using CNH tech
- Precision increased 20% more acres per day
- In harvest segment, save 33% of grain loss
- Inflection point in operational efficiencies
- Educating farmers on tech efficiencies
- Skips and doubles in seeding process reduce efficiency
- Customer focused
- Autonomous grain cart
- Autonomous sprayers
- Focus on what customers want to adopt first
- Labor constraint is real and autonomy is becoming a necessity
- Autosteer changed labor intensity over the years
- Precision sprayers increase productivity, reduce input costs, and reduce farmer fatigue
- Customers say they prefer one display to multitask
- Trends in farms today: farm consolidation, lack of skilled labor, and raising input costs
- Their first liquid methane tractor
- Problem with methane is the low boiling point, solved by cooled liquid methane
- Full electric tractor
- Partnership is key for farmer usage of technology
- Diverse portfolio for different farm size and types
- Almost 1/4 of surveyed farmers expect to adopt new technologies in 2 years
- Transition from retrofit to factory fit
- Expects 14.5-15.5% EBIT margins in 2024
- Expects 10-15% CAGR
- No large investment insight
- 1.5x higher precision ag segment margin relative to overall margin
- Raven now in-house
- Raven -> key part for CNH’s growth
- Flexible payment and don’t overburden themselves with recurring revenue calculation