Caterpillar, Inc. · NYSE:CAT
Caterpillar — ISI 2014 Industrial Conference
23 slides from Caterpillar's conference presentation, Mar 11, 2014
Slide 1: ISI 2014 Industrial Conference
ISI 2014 Industrial Conference Julie Lagacy – Vice President Finance Services Rich Moore – Director of Investor Relations March 11, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this filing 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,” “will,” “would,” “expect,” “anticipate,
Slide 3: Agenda
Agenda • 2010 Strategy Refresh • Across the Table Initiative • Lean / Integrated Value Chains • Energy and Transportation • Cash Deployment
Slide 4: In 2010 … significant changes to our strategy
In 2010 … significant changes to our strategy External focus on beating competitors and helping customers succeed CPS, quality, and cost management … internal issues we needed to fix We put the fundamentals in play driving the Caterpillar Business Model We focused on employees and Leadership Develop
Slide 5: We've Updated our Strategy
We’ve Updated our Strategy Our 2010 strategy set the right direction … We are updating it and focusing on key imperatives that will drive us to 2018
Slide 6: The key elements we're focused on are …
The key elements we’re focused on are … More flexible cost structure We took out significant costs in 2013, but minimize trough to peak structural cost need to be better prepared and more growth & improve asset utilization flexible Accelerate growth with PINS, We’ve improved PINS the last 3 years an
Slide 7: From an Investor Standpoint …
From an Investor Standpoint … … these are the key points to remember Our long-term investment thesis is intact… a global leader in equipment and services for construction, infrastructure, mining, energy, and transportation We understand we’re in cyclical industries … and are focused on the levers we
Slide 8: Agenda
Agenda • 2010 Strategy Refresh • Across the Table Initiative • Lean / Integrated Value Chains • Energy and Transportation • Cash Deployment
Slide 9: Across The Table
Across The Table Relationship Based on What we value ‐‐ Long‐Standing Principles then and now The Foundation • Character and reputation • Business enterprise • Capital and financing • Product line experience • Territory knowledge • Co-operative relationships
Slide 10: Across The Table
Across The Table Business Model Excellence • Improve overall Dealer performance • Improve our competitive advantage • Drive significant growth in field population • Consistent outstanding customer experience • Be easy to do business with • Serve multiple customer requirements through Dealer channel
Slide 11: Agenda
Agenda • 2010 Strategy Refresh • Across the Table Initiative • Lean / Integrated Value Chains • Energy and Transportation • Cash Deployment
Slide 12: Caterpillar Value Chain Framework
Caterpillar Value Chain Framework Market Back Internal & Product Product Customer External Logistics Operations Strategy Distribution Requirements Suppliers Strategy Capability Performance Enterprise Excellence Strong CPS Customer Satisfaction Customer Service Promise Lean Transformation
Slide 13: Agenda
Agenda • 2010 Strategy Refresh • Across the Table Initiative • Lean / Integrated Value Chains • Energy and Transportation • Cash Deployment
Slide 14: Energy & Transportation
1) ih ait eee a SS eS b> bs BOS ee BUILT FOR IT.
Slide 15: Energy & Transportation
Energy & Transportation Billions of $ 2010 2011 2012 2013 Sales $ 15.5 $ 20.1 $ 21.1 $ 20.2 Profit $ 2.3 $ 3.1 $ 3.4 $ 3.4 Diverse end markets, customers and product line
Slide 16: Energy & Transportation 2013 Sales
Energy & Transportation 2013 Sales Transportation Industrial Power Generation Oil & Gas
Slide 17: Oil & Gas
OIL & GAS
Slide 18: Global Energy Demand
Global Energy Demand 20.000 56% 28% Million tons oil equivalent 15.000 Oil 23% 33% Increase in 10.000 Energy 22% demand 2010-2040 5.000 Coal 27% 28% 2010 2020 2030 2040 Source: EIA – International Annual Energy Outlook, July 25, 2013
Slide 19: Oil & Gas Products and Applications
OIL & GAS PRODUCTS • Reciprocating Engines • Pumps & Transmissions • Gas Turbines & Compressors APPLICATIONS • Offshore & Land Drilling • Well Service • Production • Gas Compression
Slide 20: Agenda
Agenda • 2010 Strategy Refresh • Across the Table Initiative • Energy and Transportation • Cash Deployment
Slide 21: We Invest for … Financial Strength and Growth
We Invest for … Financial Strength and Growth * We expect significant cash to invest * Includes dividend declared for 1Q 2013, but paid in December 2012
Slide 22: Our strategic financial performance goals…
Our strategic financial performance goals… TSR in the top 25% of the S&P 500 over the long-term Profit growth 15%+ over the cycle… that means incremental operating profit pull through of about 25% We’re in cyclical industries … some years it’ll be more than 15% … some years less
Slide 23: ISI 2014 Industrial Conference
ISI 2014 Industrial Conference Julie Lagacy – Vice President Finance Services Rich Moore – Director of Investor Relations March 11, 2014