Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q3 2021 Earnings Presentation
23 slides from Caterpillar's earnings presentation, Oct 28, 2021
Slide 1: Third Quarter 2021 Financial Review
Third Quarter 2021 Financial Review October 28, 2021 | 1 Caterpillar: Confidential Green
Slide 2: Forward-Looking Statements
3Q 2021 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 Execution from our Global Team
Strong Execution from our Global Team THANK YOU CONTINUED STRONG TO OUR EXECUTION OF END-USER DEMAND GLOBAL TEAM OUR STRATEGY | 3 Caterpillar: Confidential Green
Slide 4: Financial Results Summary
Financial Results Summary Third Quarter 2021 vs. Third Quarter 2020 Sales Operating Profit Adjusted Profit & Revenues Profit Margin1 Per Share Per Share2 $12.4B 13.4% $2.60 $2.66 25% 3.4pts 113% 75% 1 Adjusted operating profit margin in the third quarter of 2021 was 13.7%. Adjusted operating profit
Slide 5: ME&T Free Cash Flow and Capital Deployment
ME&T Free Cash Flow and Capital Deployment We expect to return substantially all of our ME&T Free Cash Flow to shareholders over time ME&T Free Returned to Dividend Cash Flow1 Shareholders in 3Q Aristocrat $0.8B $2.0B In 3Q 2021 Through dividends and Higher dividends paid annually share repurchases
Slide 6: Investor Day Targets
Investor Day Targets1 Adjusted Operating ME&T Free Profit Margin2 Cash Flow3 300 to 600 Incremental $1.0 billion to basis point improvement $2.0 billion annually 1 Investor Day Targets based on Caterpillar Investor Day held in 2019. Caterpillar communicated improvements in Adjusted Operating Profit
Slide 7: End Market Commentary
End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES RESOURCE ENERGY INDUSTRIES & TRANSPORTATION | 7 Caterpillar: Confidential Green
Slide 8: Sustainability Progress
Sustainability Progress Chief Sustainability & Strategy Officer Zero Emissions Battery Storage Enhancing ESG-Related Disclosures Announcements Reducing Emissions Incentive Plan for Executives | 8 Caterpillar: Confidential Green
Slide 9: Financial Results Summary
Financial Results Summary Third Quarter 2021 vs. Third Quarter 2020 SALES & REVENUES OPERATING PROFIT ADJUSTED PROFIT (in billions of dollars) (in billions of dollars) PER SHARE1 (in dollars) $1.7 $2.66 $12.4 $9.9 $1.0 $1.52 3Q 2021 2020 2021 3Q 2020 2020 1Q 2021 1Q 2020 3Q2018 3Q2019 3Q 3Q 1 Third-
Slide 10: Consolidated Sales & Revenues
Consolidated Sales & Revenues Third Quarter 2021 vs. Third Quarter 2020 3rd Quarter Highlights Sales & Revenues Increased $2.5B or 25% • Sales higher across the primary segments • Increased end-user demand • Favorable impact from changes in dealer inventories • Favorable price realization | 10 Cater
Slide 11: Consolidated Operating Profit
Consolidated Operating Profit Third Quarter 2021 vs. Third Quarter 2020 3rd Quarter Highlights Operating Profit Increased $0.7B or 69% • Increased sales volume • Favorable price realization • Unfavorable SG&A/R&D expenses • Higher manufacturing costs Operating Profit Margin of 13.4% Adjusted Operati
Slide 12: Construction Industries
Construction Industries Third Quarter 2021 vs. Third Quarter 2020 Total Sales* Segment Profit Segment Profit 3rd Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $1,199M or 30% • North America – Higher sales volume and favorable
Slide 13: Resource Industries
Resource Industries Third Quarter 2021 vs. Third Quarter 2020 Total Sales* Segment Profit Segment Profit 3rd Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $590M or 32% • Higher end-user demand for equipment and aftermarket par
Slide 14: Energy & Transportation
Energy & Transportation Third Quarter 2021 vs. Third Quarter 2020 Total Sales* Segment Profit Segment Profit 3rd Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $916M or 22% • Oil and Gas – Increase in reciprocating engines and
Slide 15: Financial Products
Financial Products Third Quarter 2021 vs. Third Quarter 2020 Total Revenues* Segment Profit 3rd Quarter Highlights (in millions of dollars) (in millions of dollars) Total Revenues Increased $38M or 5% $173 • Portfolio remained strong $724 $762 $142 Segment Profit Increased $31M or 22% • Favorable im
Slide 16: Balance Sheet and Capital Deployment
Balance Sheet and Capital Deployment ME&T Free Enterprise Cash Returned to Cash Flow1 Balance Shareholders YTD $0.8B in 3Q $9.4B $3.4B $4.2 billion in ME&T Free Cash Strong balance sheet Through dividends and Flow generated September YTD share repurchases 1 ME&T Free Cash Flow represents ME&T operat
Slide 17: Key Thoughts As We Look Ahead
Key Thoughts As We Look Ahead • Expect stronger sales in fourth quarter following normal seasonality • Versus third quarter, expect seasonal pattern of lower adjusted operating profit margin1 in the fourth quarter • Within machines, still anticipate price to offset higher manufacturing costs for ful
Slide 18: Key Takeaways
Key Takeaways Continuing to execute our Continued strength On track to meet our strategy for long-term in end-user Investor Day targets for both profitable growth demand Adjusted Operating Profit Margin1 and ME&T Free Cash Flow2 1 Adjusted operating profit margin is a non-GAAP measure and a reconcil
Slide 19: Q&A
3Q 2021 EARNINGS RELEASE Q&A | 19 Caterpillar: Confidential Green
Slide 20: Calendar 2022 Caterpillar Earnings Calls and Investor Day
Calendar 2022 Caterpillar Earnings Calls and Investor Day Earnings Quarter Release Date Call Time 4th Quarter 2021 Friday, January 28, 2022 8:30 a.m. Eastern 1st Quarter 2022 Thursday, April 28, 2022 8:30 a.m. Eastern 2nd Quarter 2022 Tuesday, August 2, 2022 8:30 a.m. Eastern 3rd Quarter 2022 Thursd
Slide 21: Dealer Inventory and Order Backlog
Dealer Inventory and Order Backlog Decreased Decreased Favorable Dealer ($0.3B) ($0.6B) $0.3B Inventories* 3Q 2021 3Q 2020 3Q 2021 *Dealers are independent businesses and control their own inventory Note: Amounts may not add due to rounding vs. 2Q 2021 vs. 2Q 2020 Impact on Sales Increased Increased
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Note: Amounts may not add due to rounding. | 22 Caterpillar: Confidential Green
Slide 23: 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 2020 3Q 2021 ME&T cash flow from operations $1.1 $1.1 0.0 ME&T capital expenditures (0.2) (0.3) ME&T free cash flow $0.9 $0.8 Note: See reconciliation of ME&T cash flow from opera