Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q1 2022 Earnings Presentation
22 slides from Caterpillar's earnings presentation, Apr 28, 2022
Slide 1: First Quarter 2022 Financial Review
First Quarter 2022 Financial Review April 28, 2022 | 1
Slide 2: Forward-Looking Statements
1Q 2022 EARNINGS RELEASE Forward-Looking Statements Certain statements in this financial review relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “wil
Slide 3: Strong Performance from our Global Team
Strong Performance from our Global Team THANK YOU CONTINUING TO EXECUTE OUR STRONG TO OUR GLOBAL TEAM STRATEGY FOR LONG-TERM END-USER DEMAND PROFITABLE GROWTH | 3
Slide 4: Financial Results Summary
Financial Results Summary First Quarter 2022 vs. First Quarter 2021 Sales Operating Profit Adjusted Profit & Revenues Profit Margin1 Per Share Per Share2 $13.6B 13.7% $2.86 $2.88 1.6pts 14% 3% 0% 1 Adjusted operating profit margin in the first quarter of 2022 was 13.7%. Adjusted operating profit mar
Slide 5: ME&T Free Cash Flow and Capital Deployment
ME&T Free Cash Flow1 and Capital Deployment Returned to Dividend ME&T Free Shareholders in 1Q 2022 Aristocrat Cash Flow1 $1.4B Through dividends and Proud of our status as a Expect to return substantially all share repurchases Dividend Aristocrat ME&T free cash flow1 over time 1 ME&T free cash flow
Slide 6: End Market Commentary
End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES RESOURCE ENERGY INDUSTRIES & TRANSPORTATION | 6
Slide 7: Services, Technology and Sustainability
Services, Technology and Sustainability Helping our customers build a better world First Autonomous Greenfield Site in the United States MAY 17 | 7
Slide 8: Financial Results Summary
Financial Results Summary First Quarter 2022 vs. First Quarter 2021 SALES & REVENUES OPERATING PROFIT ADJUSTED PROFIT (in billions of dollars) (in billions of dollars) PER SHARE1 (in dollars) $13.6 $11.9 $1.9 $2.87 $2.88 $1.8 2022 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 2021 2022 1Q2019 1Q2018 1Q 1Q 1
Slide 9: Consolidated Sales & Revenues
Consolidated Sales & Revenues First Quarter 2022 vs. First Quarter 2021 1st Quarter Highlights Sales & Revenues Increased $1.7B or 14% • Sales increased across the three primary segments • Higher end-user demand for equipment and services • Favorable impact from changes in dealer inventories and pri
Slide 10: Consolidated Operating Profit
Consolidated Operating Profit First Quarter 2022 vs. First Quarter 2021 1st Quarter Highlights Operating Profit Increased $41M or 2% • Favorable price realization • Increased sales volume • Unfavorable manufacturing costs primarily reflected higher material and freight • Higher SG&A/R&D expenses | 1
Slide 11: Construction Industries
Construction Industries First Quarter 2022 vs. First Quarter 2021 1st Quarter Highlights Total Sales* Segment Profit Segment Profit (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $656M or 12% • North America – Higher volume and favorable price re
Slide 12: Resource Industries
Resource Industries First Quarter 2022 vs. First Quarter 2021 1st Quarter Highlights Total Sales* Segment Profit Segment Profit (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $652M or 30% $2.8 • Increase due to higher sales volume and favorable p
Slide 13: Energy & Transportation
Energy & Transportation First Quarter 2022 vs. First Quarter 2021 1st Quarter Highlights Total Sales* Segment Profit Segment Profit (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $531M or 12% • Oil and Gas – Increase in reciprocating engine after
Slide 14: Financial Products
Financial Products First Quarter 2022 vs. First Quarter 2021 Total Revenues* Segment Profit 1st Quarter Highlights (in millions of dollars) (in millions of dollars) Total Revenues Increased $22M or 3% • Favorable impact from returned or repossessed equipment $761 $783 $244 $238 • Higher average earn
Slide 15: ME&T Free Cash Flow and Capital Deployment
ME&T Free Cash Flow1 and Capital Deployment 1Q ME&T Free Returned to Shareholders Enterprise Cash Cash Flow1 in 1Q 2022 Balance ($0.4B) $1.4B $6.5B Expect to deliver Investor Day2 Through dividends and share Liquidity remains strong ME&T FCF1 targets for full year repurchases 1 ME&T free cash flow r
Slide 16: Key Thoughts As We Look Ahead
Key Thoughts As We Look Ahead • Anticipate 2Q 2022 sales to increase vs 1Q 2022 from continued strong end-user demand and pricing • 2Q 2022 Adjusted Operating Profit Margin1 expected to be similar to 2Q 2021 • Continue to anticipate price increases to more than offset manufacturing cost increases in
Slide 17: Key Takeaways
Key Takeaways End-user demand Expect to achieve Executing our strategy for remains strong Investor Day targets1 long-term profitable growth 1 Investor Day Targets based on Caterpillar Investor Day held in 2019. Caterpillar communicated improvements in Adjusted Operating Profit Margins of 3% - 6% and
Slide 18: Q&A
1Q 2022 EARNINGS RELEASE Q&A | 18
Slide 19: 2022 Caterpillar Earnings Call Schedule
2022 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 2nd Quarter 2022 Tuesday, August 2, 2022 8:30 a.m. Eastern 3rd Quarter 2022 Thursday, October 27, 2022 8:30 a.m. Eastern | 19
Slide 20: Dealer Inventory and Order Backlog
Dealer Inventory and Order Backlog Increased Increased Favorable Dealer $1.3B $0.7B $0.6B Inventories* 1Q 2022 1Q 2021 1Q 2022 *Dealers are independent businesses and control their own inventory Note: Amounts may not add due to rounding vs. 4Q 2021 vs. 4Q 2020 Impact on Sales Increased Increased Inc
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Note: Amounts may not add due to rounding. | 21
Slide 22: Reconciliation to U.S. GAAP
Reconciliation to U.S. GAAP Reconciliation of ME&T Cash Flow from Operations to ME&T Free Cash Flow (USD in billions) 1Q 2021 1Q 2022 ME&T cash flow from operations $1.9 ($0.1) ME&T capital expenditures (0.3) (0.3) ME&T free cash flow $1.7 ($0.4) Note: Amounts may not add due to rounding. Note: See