Caterpillar, Inc. · NYSE:CAT
Caterpillar — Shareholder Meeting (June 2007)
16 slides from Caterpillar's shareholder meeting presentation, Jun 13, 2007
Slide 1: Annual Meeting of Stockholders
MAKING PROGRESS POSSIBLE Annual Meeting of Stockholders June 13, 2007 Jim Owens Chairman & CEO
Slide 2: Safe Harbor Statement
Safe Harbor Statement UNDER THE SECURITIES LITIGATION REFORM ACT OF 1995 Certain statements contained in this presentation are forward-looking andinvolve uncertainties that could significantly impact results. Therefore, actual results could differ materially from those projected in the forward-looki
Slide 3: Looking Back: Strong Performance in 2006
Looking Back STRONG PERFORMANCE IN 2006 • 4 th straight year of double-digit profit growth • 3 rd consecutive year of record sales and profitability • Significant new product development • Strategic acquisitions, dividend increase, stock repurchase
Slide 4: Financial Performance: Five Years of Growth
20 23 30 36 41 02 03 04 05 06 1.15 1.56 2.88 4.04 5.17 02 03 04 05 06 Financial Performance FIVE YEARS OF GROWTH Sales & Revenues ($B) Profit Per Share ($) 07* 5.45 07* *Midpoint of the outlook
Slide 5: Historical Performance: Sales & Revenues Growth
Historical Performance SALES & REVENUES GROWTH 1990-2006 Sales & Revenues CAGR = 8% 1990-2006 Profit per Share CAGR = 20% *Midpoint of the outlook
Slide 6: Caterpillar Versus the S&P
Caterpillar Versus the S&P COMPOUND ANNUAL PROFIT PER SHARE GROWTH S&P Caterpillar years through 2006 9% 22% years through 2006 8% 11% years through 2006 27% 35%
Slide 7: Looking Ahead: Well-Positioned for Future Success
Looking Ahead WELL-POSITIONED FOR FUTURE SUCCESS • Strongest product lineup in history • Breadth and diversity of products, services, end markets and geographic footprint • Continued investment in capacity and technology • Strong cash flow funding growth, pension and benefit plans, dividend increase
Slide 8: Near-term Industry Outlook
Weak Industries • On-highway Truck Engines • U.S. Construction Near-term Industry Outlook CONTINUED STRENGTH IN MOST INDUSTRIES WE SERVE Strong Industries • Global Mining • Global Oil & Gas • Large Infrastructure • Construction Outside North America • Marine Engines • Distributed Power
Slide 9: Longer-term Trends Positive for Caterpillar
Longer-term Trends POSITIVE FOR CATERPILLAR • Past underinvestment – inadequate infrastructure and capital equipment • Low inflation and interest rates • Good liquidity and less risk of severe financial crises in emerging markets • Naturally hedged against currency fluctuations
Slide 10: Good Economic Growth Expected Worldwide
Good Economic Growth Expected Worldwide DRIVING DEMAND FOR OUR PRODUCTS 2.8 3.2 1.9 3.2 6.6 1.0 3.0 2.7 2.7 3.0 6.5 1.6 3.5 2.8 2.9 4.0 6.6 2.7 3.5 3.2 2.8 3.6 6.1 2.5 World North America Europe, Africa, Middle East Latin America Asia Pacific Japan - 1999 - 2006 2007-2010 2011-2015
Slide 11: Commodity Prices Generally Positive for Investment
Commodity Prices GENERALLY POSITIVE FOR INVESTMENT Crude Oil Coal 15.00 4.00 7.50 3.35 4.50 1.30 Natural Gas Copper Maximum Price Estimated threshold for new investment Recent Price
Slide 12: Outlook & 2010 Goals
Actual Outlook Goal Sales & Revenues $41.5B $42B - $44B $50B* Profit per Share $5.17 $5.30 - $5.80 15-20% CAGR * Plausible range of $45B to $60B Outlook & 2010 Goals HIGH EXPECTATIONS
Slide 13: Enterprise Strategy: Focus on Execution
STRATEGIC GOALS People CRITICAL SUCCESS FACTORS TROUGH STRATEGIC PROFILE Performance Products & Process Profitable Growth PEOPLE PRODUCT QUALILTY VELOCITY DISTRIBUTION CHINA VISION Our Values in Action – INTEGRITY, EXCELLENCE, TEAMWORK, COMMITMENT WORLDWIDE CODE OF CONDUCT ENTERPRISE STRATEGIC AREAS
Slide 14: Employee Safety: Encouraging Progress
75% improvement in recordable injuries 86% improvement in lost-time cases Employee Safety ENCOURAGING PROGRESS • More than 20,000 recordable injures avoided • 80% of facilities have 2 or fewer injuries this year
Slide 15: Sustainable Development
Sustainable Development ENDLESS CHALLENGES & OPPORTUNITIES • Improving our own energy efficiency • Dramatically reducing product emissions • Growing our remanufacturing business • Pursuing the use of alternative / renewable fuels • Advocating economically and environmentally responsible policies
Slide 16: Caterpillar is Ready!
Caterpillar is Ready! GLOBAL LEADERSHIP • Best products, brands, manufacturing footprint, distribution and product support network, value proposition, technology, people… • Extraordinarily well positioned to compete and win in the global economy