Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q2 2022 Earnings Presentation
22 slides from Caterpillar's earnings presentation, Aug 2, 2022
Slide 1: Second Quarter 2022 Financial Review
Second Quarter 2022 Financial Review August 2, 2022 | 1
Slide 2: Forward-Looking Statements
2Q 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 HEALTHY DEMAND FOR TO OUR GLOBAL TEAM STRATEGY FOR LONG-TERM EQUIPMENT AND SERVICES PROFITABLE GROWTH | 3
Slide 4: Financial Results Summary
Financial Results Summary Second Quarter 2022 vs. Second Quarter 2021 Sales Operating Profit Adjusted Profit & Revenues Profit Margin1 Per Share Per Share2 $14.2B 13.6% $3.13 $3.18 0.3pts 11% 22% 22% 1 Adjusted operating profit margin in the second quarter of 2022 was 13.8%. Adjusted operating profi
Slide 5: ME&T Free Cash Flow and Capital Deployment
ME&T Free Cash Flow1 and Capital Deployment ME&T Free Returned to Increased Cash Flow1 Shareholders in 2Q 2022 Dividend $1.1B $1.7B 8% Expect to deliver Investor Day2 Through share repurchases Proud of our status as a ME&T FCF1 targets for full year and dividends Dividend Aristocrat 1 ME&T free cash
Slide 6: End Market Commentary
End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES RESOURCE ENERGY INDUSTRIES & TRANSPORTATION | 6
Slide 7: Sustainability
Sustainability Sustainability Report District Energy Tangent Energy St. Paul Solutions SUSTAINABILITY | 7
Slide 8: Financial Results Summary
Financial Results Summary Second Quarter 2022 vs. Second Quarter 2021 SALES & REVENUES OPERATING PROFIT ADJUSTED PROFIT (in billions of dollars) (in billions of dollars) PER SHARE1 (in dollars) $14.2 $3.18 $12.9 $1.8 $1.9 $2.60 2022 2022 2Q 2021 2Q 2022 1Q 2022 2021 1Q 2021 2022 2Q2018 2Q2019 2Q 2Q
Slide 9: Consolidated Sales & Revenues
Consolidated Sales & Revenues Second Quarter 2022 vs. Second Quarter 2021 2nd Quarter Highlights Sales & Revenues Increased $1.4B or 11% • Sales increased across the three primary segments • Favorable impact from price realization • Higher volume from services • Partially offset by lower sales of eq
Slide 10: Consolidated Operating Profit
Consolidated Operating Profit Second Quarter 2022 vs. Second Quarter 2021 2nd Quarter Highlights Operating Profit Increased $155M or 9% • Favorable price realization • Increased sales volume • Unfavorable manufacturing costs primarily from higher material and freight • Higher SG&A/R&D expenses • Adj
Slide 11: Construction Industries
Construction Industries Second Quarter 2022 vs. Second Quarter 2021 2nd 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 $377M or 7% • North America – Higher sales due to favorable price
Slide 12: Resource Industries
Resource Industries Second Quarter 2022 vs. Second Quarter 2021 2nd 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 $414M or 16% • Increase due to favorable price realization and higher
Slide 13: Energy & Transportation
Energy & Transportation Second Quarter 2022 vs. Second Quarter 2021 2nd 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 $730M or 15% • Oil and Gas – Increase in reciprocating engine aft
Slide 14: Financial Products
Financial Products Second Quarter 2022 vs. Second Quarter 2021 Total Revenues* Segment Profit 2nd Quarter Highlights (in millions of dollars) (in millions of dollars) Total Revenues Increased $24M or 3% • Favorable impact from returned or repossessed equipment $774 $798 $243 • Higher average financi
Slide 15: ME&T Free Cash Flow and Capital Deployment
ME&T Free Cash Flow1 and Capital Deployment 2Q ME&T Free Returned to Shareholders Enterprise Cash Cash Flow1 in 2Q 2022 Balance $1.1B $1.7B $6.0B Expect to deliver Investor Day2 Through share repurchases Liquidity remains strong ME&T FCF1 targets for full year and dividends 1 ME&T free cash flow rep
Slide 16: Key Thoughts As We Look Ahead
Key Thoughts As We Look Ahead • Anticipate 3Q sales to increase from higher sales to users and price realization • Adjusted operating profit margin1 to improve in second half of 2022 • Continue to anticipate price realization to more than offset manufacturing cost increases • Short-term incentive co
Slide 17: Key Takeaways
Key Takeaways Underlying 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 2022. Caterpillar communicated a progressive adjusted operating profit margin target range of
Slide 18: Q&A
2Q 2022 EARNINGS RELEASE Q&A | 18
Slide 19: 2022 Caterpillar Earnings Call Schedule
2022 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 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 Decreased Decreased Flat Dealer $0.4B $0.4B $0.0B Inventories* 2Q 2022 2Q 2021 2Q 2022 *Dealers are independent businesses and control their own inventory. Note: Amounts may not add due to rounding. vs. 1Q 2022 vs. 1Q 2021 Impact on Total Sales Increased Increased
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) 2Q 2021 2Q 2022 ME&T cash flow from operations $ 1.9 $ 1.4 ME&T capital expenditures (0.2) (0.2) ME&T free cash flow $ 1.7 $ 1.1 Note: Amounts may not add due to rounding. Note: See