Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q3 2022 Earnings Presentation
22 slides from Caterpillar's earnings presentation, Oct 27, 2022
Slide 1: Third Quarter 2022 Financial Review
Third Quarter 2022 Financial Review October 27, 2022 | 1
Slide 2: Forward-Looking Statements
3Q 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 EXECUTING OUR THANK YOU HEALTHY DEMAND STRATEGY FOR LONG- TO OUR ACROSS TERM PROFITABLE GLOBAL TEAM MOST END MARKETS GROWTH | 3
Slide 4: Key Takeaways
Key Takeaways Third Quarter 2022 vs. Third Quarter 2021 Sales Operating Operating Profit Adjusted Profit & Revenues Profit Profit Margin1 Per Share Per Share2 21% 46% 2.8pts 49% 48% $15.0B $2.4B 16.2% $3.87 $3.95 1 Adjusted operating profit margin in the third quarter of 2022 was 16.5%. Adjusted ope
Slide 5: ME&T Free Cash Flow and Capital Deployment
ME&T Free Cash Flow1 and Capital Deployment 3Q 2022 ME&T Free Returned to Dividend Cash Flow1 Shareholders in 3Q 2022 Aristocrat $2.1B $2.0B Expect to deliver Investor Day2 Expect to return substantially Paid higher annual ME&T FCF1 targets for full year all ME&T Free Cash Flow1 to dividends to shar
Slide 6: End Market Commentary
End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES RESOURCE ENERGY INDUSTRIES & TRANSPORTATION | 6
Slide 7: Sustainability
Sustainability BHP haul truck Battery electric machine fleet replacement prototypes at bauma | 7
Slide 8: Financial Results Summary
Financial Results Summary Third Quarter 2022 vs. Third Quarter 2021 SALES & REVENUES OPERATING PROFIT ADJUSTED PROFIT (in billions of dollars) (in billions of dollars) PER SHARE1 (in dollars) $15.0 $2.4 $3.95 $12.4 $1.7 $2.66 2022 2022 2022 2021 1Q 2021 1Q 2022 3Q 2021 3Q 2022 3Q2019 3Q2018 3Q 3Q 1
Slide 9: Consolidated Sales & Revenues
Consolidated Sales & Revenues Third Quarter 2022 vs. Third Quarter 2021 3rd Quarter Highlights Sales & Revenues Increased $2.6B or 21% • Sales increased across the three primary segments • Favorable impact from price realization and higher sales volume • Partially offset by currency impacts related
Slide 10: Consolidated Operating Profit
Consolidated Operating Profit Third Quarter 2022 vs. Third Quarter 2021 3rd Quarter Highlights Operating Profit Increased $761M or 46% • Favorable price realization • Increased sales volume • Unfavorable manufacturing costs largely reflected higher material costs, freight and manufacturing inefficie
Slide 11: Construction Industries
Construction Industries Third Quarter 2022 vs. Third Quarter 2021 3rd 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 $1,021M or 19% • North America – Favorable price realization and hi
Slide 12: Resource Industries
Resource Industries Third Quarter 2022 vs. Third Quarter 2021 3rd 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 $721M or 30% • Favorable price realization and higher sales volume $3.1
Slide 13: Energy & Transportation
Energy & Transportation Third Quarter 2022 vs. Third Quarter 2021 3rd 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 $1,109M or 22% • Oil and Gas – Increase in reciprocating engine aft
Slide 14: Financial Products
Financial Products Third Quarter 2022 vs. Third Quarter 2021 Total Revenues* Segment Profit 3rd Quarter Highlights (in millions of dollars) (in millions of dollars) Total Revenues Increased $57M or 7% $819 $220 • Higher average financing rates in North America and Latin America $762 $173 Segment Pro
Slide 15: ME&T Free Cash Flow and Capital Deployment
ME&T Free Cash Flow1 and Capital Deployment 3Q ME&T Free Returned to Shareholders Enterprise Cash Cash Flow1 in 3Q 2022 Balance $2.1B $2.0B $6.3B Expect to return substantially all Through share repurchases Liquidity remains strong ME&T Free Cash Flow1 to and dividends shareholders over time 1 ME&T
Slide 16: Key Thoughts As We Look Ahead
Key Thoughts As We Look Ahead • Anticipate 4Q 2022 sales to be highest quarter of the year reflecting typical seasonality • Expect 4Q 2022 price realization to more than offset manufacturing cost increases vs 4Q 2021 • Anticipate strong 4Q 2022 adjusted operating profit margin1 • Short-term incentiv
Slide 17: Key Takeaways
Key Takeaways EXECUTING OUR STRONG FINANCIAL $2.1B IN ME&T STRATEGY FOR PERFORMANCE Free Cash Flow1 LONG-TERM IN 3Q 2022 IN 3Q 2022 PROFITABLE GROWTH 1 ME&T free cash flow represents ME&T operating cash flow less capital expenditures, excluding discretionary pension contributions and cash payments r
Slide 18: Q&A
3Q 2022 EARNINGS RELEASE Q&A | 18
Slide 19: 2023 Caterpillar Earnings Call Schedule
2023 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 4th Quarter 2022 Tuesday, January 31, 2023 8:30 a.m. Eastern 1st Quarter 2023 Thursday, April 27, 2023 8:30 a.m. Eastern 2nd Quarter 2023 Tuesday, August 1, 2023 8:30 a.m. Eastern 3rd Quarter 2023 Tuesday, October 31, 20
Slide 20: Dealer Inventory and Order Backlog
Dealer Inventory and Order Backlog Increased Decreased Favorable Dealer $0.7B $0.3B $1.0B Inventories* 3Q 2022 3Q 2021 3Q 2022 *Dealers are independent businesses and control their own inventory. Note: Amounts may not add due to rounding. vs. 2Q 2022 vs. 2Q 2021 Impact on Total Sales Increased Incre
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) 3Q 2021 3Q 2022 ME&T cash flow from operations $ 1.1 $ 1.9 ME&T capital expenditures (0.3) (0.3) Payments made related to settlements with IRS - 0.5 ME&T free cash flow $ 0.8 $ 2.1 N