Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q1 2023 Earnings Presentation
22 slides from Caterpillar's earnings presentation, Apr 27, 2023
Slide 1: First Quarter 2023 Financial Review
First Quarter 2023 Financial Review April 27, 2023
Slide 2: Forward-Looking Statements
1Q 2023 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
1Q 2023 EARNINGS RELEASE Strong Performance THANK YOU HEALTHY DEMAND EXECUTING OUR TO OUR STRATEGY FOR ACROSS MOST LONG-TERM GLOBAL TEAM END MARKETS PROFITABLE GROWTH 3
Slide 4: Key Takeaways
1Q 2023 EARNINGS RELEASE Key Takeaways First Quarter 2023 vs First Quarter 2022 $15.9B $2.7B $3.3B $3.74 $4.91 17% 47% 79% 31% 70% Sales & Operating Adjusted Profit Per Adjusted Revenues Profit Operating Share Profit Per Profit1 Share2 1 Adjusted operating profit is a non-GAAP measure, and a reconci
Slide 5: ME&T Free Cash Flow and Capital Deployment
1Q 2023 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment 29 $1.4B $1.0B years 1Q 2023 ME&T Returned to Dividend Free Cash Flow1 Shareholders in 1Q 2023 Aristocrat Expect to return substantially Through dividends and Paid higher annual dividends all ME&T Free Cash Flow1 share repurchases
Slide 6: End Market Commentary
End Market Commentary 1Q 2023 EARNINGS RELEASE CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES ENERGY & TRANSPORTATION 6
Slide 7: Sustainability
Sustainability 1Q 2023 EARNINGS RELEASE Helping our customers achieve their climate-related objectives while improving operational efficiencies 7
Slide 8: Financial Results Summary
1Q 2023 EARNINGS RELEASE Financial Results Summary First Quarter 2023 vs First Quarter 2022 SALES & REVENUES OPERATING PROFIT ADJUSTED PROFIT (in billions of dollars) (in billions of dollars) PER SHARE1 (in dollars) $2.7 $15.9 $4.91 $1.9 $13.6 $2.88 2022 2022 2022 2023 1Q 2022 1Q 2023 1Q 2022 1Q 202
Slide 9: Consolidated Sales and Revenues
Consolidated Sales and Revenues 1Q 2023 EARNINGS RELEASE First Quarter 2023 vs First Quarter 2022 1st Quarter Highlights Sales & Revenues Increased $2.3B or 17% • Favorable impact from price realization and sales volume • Partially offset by unfavorable currency impacts • Sales increased across the
Slide 10: Consolidated Operating Profit
Consolidated Operating Profit 1Q 2023 EARNINGS RELEASE First Quarter 2023 vs First Quarter 2022 1st Quarter Highlights Operating Profit Increased $876M or 47% • Favorable price realization and sales volume • Partially offset by impact of the divestiture of the company’s Longwall business and higher
Slide 11: Construction Industries
Construction Industries 1Q 2023 EARNINGS RELEASE First Quarter 2023 vs First Quarter 2022 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 $631M or 10% • North America – Favorable pr
Slide 12: Resource Industries
Resource Industries 1Q 2023 EARNINGS RELEASE First Quarter 2023 vs First Quarter 2022 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 $597M or 21% • Favorable price realization and
Slide 13: Energy & Transportation
Energy & Transportation 1Q 2023 EARNINGS RELEASE First Quarter 2023 vs First Quarter 2022 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 $1,216M or 24% • Oil and Gas – Increase in
Slide 14: Financial Products
Financial Products 1Q 2023 EARNINGS RELEASE First Quarter 2023 vs First Quarter 2022 Total Revenues* Segment Profit 1st Quarter Highlights (in millions of dollars) (in millions of dollars) $238 Total Revenues Increased $119M or 15% $902 $232 • Higher average financing rates across all regions $783 S
Slide 15: ME&T Free Cash Flow and Capital Deployment
1Q 2023 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment $1.4B $1.0B $6.8B 1Q 2023 ME&T Returned to Enterprise Cash Free Cash Flow1 Shareholders in 1Q 2023 Balance Expect to be at the top half of the Through dividends and share Liquidity remains strong ME&T free cash flow1 target range2
Slide 16: Key Thoughts As We Look Ahead
1Q 2023 EARNINGS RELEASE Key Thoughts As We Look Ahead • Expect strong sales to users and no significant change in dealer inventory1 versus year-end 2022 • Full-year 2023 adjusted operating profit margin2 to be in the top half of our target range3 • Expect 2Q 2023 sales to increase vs 1Q 2023 in lin
Slide 17: First-Quarter 2023 Key Takeaways
1Q 2023 EARNINGS RELEASE First-Quarter 2023 Key Takeaways SALES GROWTH ADJUSTED $1.4B IN ME&T EXECUTING OUR STRATEGY OPERATING PROFIT FOR LONG-TERM ACROSS THE THREE FREE CASH MARGIN1 PROFITABLE PRIMARY FLOW2 INCREASED TO GROWTH SEGMENTS 21.1% 1 Adjusted operating profit margin is a non-GAAP measure,
Slide 18: Q&A
1Q 2023 EARNINGS RELEASE Q&A 18
Slide 19: 2023 Caterpillar Earnings Call Schedule
1Q 2023 EARNINGS RELEASE 2023 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 2nd Quarter 2023 Tuesday, August 1, 2023 8:30 a.m. Eastern 3rd Quarter 2023 Tuesday, October 31, 2023 8:30 a.m. Eastern 19
Slide 20: Dealer Inventory and Order Backlog
Dealer Inventory and Order Backlog 1Q 2023 EARNINGS RELEASE Increased Increased Favorable Dealer $1.4B $1.3B $0.1B Inventories1 1Q 2023 1Q 2022 1Q 2023 1 Dealers are independent businesses and control their own inventory. Note: Amounts may not add due to rounding. vs. 4Q 2022 vs. 4Q 2021 Impact on T
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures 1Q 2023 EARNINGS RELEASE Note: Amounts may not add due to rounding. 21
Slide 22: Reconciliation to U.S. GAAP
Reconciliation to U.S. GAAP 1Q 2023 EARNINGS RELEASE Reconciliation of ME&T Cash Flow from Operations to ME&T Free Cash Flow (USD in billions) 1Q 2022 1Q 2023 ME&T cash flow from operations $ (0.1) $ 1.8 ME&T capital expenditures (0.3) (0.4) ME&T free cash flow $ (0.4) $ 1.4 Note: Amounts may not ad