Basis of preparation

The 2014 statutory fi nancial statements of the parent company, CNH Industrial N.V., have been prepared in accordance with the legal requirements of Title 9, Book 2 of the Dutch Civil Code. Section 362 (8), Book 2, Dutch Civil Code, allows companies that apply IFRS as adopted by the European Union in their consolidated fi nancial statements to use the same measurement principles in their statutory fi nancial statements. The accounting policies are described in a specifi c section, Signifi cant accounting policies, of the Consolidated Financial Statements included in this Annual Report. However, as allowed by the law, subsidiaries are accounted for using the net equity value in the statutory fi nancial statements.

Format of the financial statements

As a consequence of the acquisition of the manufacturing activity carried out in Basildon, CNH Industrial N.V.

presents an income statement using a classifi cation based on the function of the expenses (also referred to as the “cost of sales” method) rather than one based on their nature, as this is believed to provide information that is more relevant.

In 2014, the presentation within certain income statement headings has been modifi ed with respect to previous year. Comparatives have been reclassifi ed accordingly.