Slide 1: Third Quarter 2023 Financial Review
Third Quarter 2023 Financial Review October 31, 2023
Slide 2: Forward-Looking Statements
3Q 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
3Q 2023 EARNINGS RELEASE Strong Performance EXECUTING OUR THANK YOU HEALTHY DEMAND STRATEGY FOR LONG-TERM TO OUR ACROSS MOST GLOBAL TEAM END MARKETS PROFITABLE GROWTH 3 Caterpillar: Confidential Yellow
Slide 4: Key Takeaways
3Q 2023 EARNINGS RELEASE Key Takeaways Third Quarter 2023 vs. Third Quarter 2022 $16.8B $3.4B $3.5B $5.45 $5.52 12% 42% 41% 41% 40% 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 reconc
Slide 5: ME&T Free Cash Flow and Capital Deployment
3Q 2023 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment 30 $6.8B $4.1B Years September YTD ME&T Returned to Shareholders Dividend Free Cash Flow1 September YTD Aristocrat Expect to return substantially Through share repurchases Higher annual dividends all ME&T Free Cash Flow1 and divide
Slide 6: End Market Commentary
End Market Commentary 3Q 2023 EARNINGS RELEASE CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES ENERGY & TRANSPORTATION 6 Caterpillar: Confidential Yellow
Slide 7: Sustainability
3Q 2023 EARNINGS RELEASE Sustainability Cat ® 980 XE Cat ® G3600 Gen 2 Albemarle 7 Caterpillar: Confidential Yellow
Slide 8: Financial Results Summary
3Q 2023 EARNINGS RELEASE Financial Results Summary Third Quarter 2023 vs. Third Quarter 2022 SALES & REVENUES OPERATING PROFIT ADJUSTED PROFIT (in billions of dollars) (in billions of dollars) PER SHARE1 (in dollars) $16.8 $3.4 $5.52 $15.0 $2.4 $3.95 2022 2022 3Q 2022 1Q 2022 1Q 2023 3Q 2023 2022 20
Slide 9: Consolidated Sales and Revenues
3Q 2023 EARNINGS RELEASE Consolidated Sales and Revenues Third Quarter 2023 vs. Third Quarter 2022 3rd Quarter Highlights Sales & Revenues Increased $1.8B or 12% • Favorable impact from price realization and sales volume • Sales increased across the three primary segments 9 Caterpillar: Confidential
Slide 10: Consolidated Operating Profit
3Q 2023 EARNINGS RELEASE Consolidated Operating Profit Third Quarter 2023 vs. Third Quarter 2022 3rd Quarter Highlights Operating Profit Increased $1.0B or 42% • Favorable price realization, including a favorable geographic mix, and higher sales volume • Partially offset by higher SG&A/R&D expenses
Slide 11: Construction Industries
3Q 2023 EARNINGS RELEASE Construction Industries Third Quarter 2023 vs. Third Quarter 2022 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 $723M or 12% $7.0 $1,847 26.4% • North Ame
Slide 12: Resource Industries
3Q 2023 EARNINGS RELEASE Resource Industries Third Quarter 2023 vs. Third Quarter 2022 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 $264M or 9% $3.4 $730 21.8% • Favorable price
Slide 13: Energy & Transportation
3Q 2023 EARNINGS RELEASE Energy & Transportation Third Quarter 2023 vs. Third Quarter 2022 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 $673M or 11% $6.9 • Oil and Gas – Increase
Slide 14: Financial Products
3Q 2023 EARNINGS RELEASE Financial Products Third Quarter 2023 vs. Third Quarter 2022 Total Revenues* Segment Profit 3rd Quarter Highlights (in millions of dollars) (in millions of dollars) Total Revenues Increased $160M or 20% $220 • Higher average financing rates across all regions $979 $203 $819
Slide 15: ME&T Free Cash Flow and Capital Deployment
3Q 2023 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment $6.8B $4.1B $6.5B September YTD ME&T Returned to Shareholders Enterprise Cash Free Cash Flow1 September YTD Balance Expect to exceed the ME&T free Through share repurchases In addition, hold $4.3B in liquid cash flow1 target range2
Slide 16: Key Thoughts As We Look Ahead
3Q 2023 EARNINGS RELEASE Key Thoughts As We Look Ahead Adjusted Operating Profit Margin1 % Target Ranges 25% • Expect slightly higher fourth-quarter 2023 sales and revenues Adjusted Operating Profit Margin 1 % 21.0% vs fourth-quarter 2022 20% 19.0% 17.0% 18.0% • Adjusted operating profit margin1 in
Slide 17: Third-Quarter 2023 Key Takeaways
3Q 2023 EARNINGS RELEASE Third-Quarter 2023 Key Takeaways YTD ADJUSTED 3Q ADJUSTED YTD PROFIT PER OPERATING ME&T FREE CASH SHARE1 PROFIT MARGIN2 FLOW3 $15.98 INCREASED TO 20.8% $6.8B EXECUTING OUR STRATEGY FOR LONG-TERM PROFITABLE GROWTH 1Adjusted profit per share for year-to-date 2023 excluded rest
Slide 18: Q&A
3Q 2023 EARNINGS RELEASE Q&A 18 Caterpillar: Confidential Yellow
Slide 19: 2024 Caterpillar Earnings Call Schedule
3Q 2023 EARNINGS RELEASE 2024 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 4th Quarter 2023 Monday, February 5, 2024 8:30 a.m. Eastern 1st Quarter 2024 Thursday, April 25, 2024 8:30 a.m. Eastern 2nd Quarter 2024 Tuesday, August 6, 2024 8:30 a.m. Eastern 3rd Quarter 2024
Slide 20: Dealer Inventory and Order Backlog
Dealer Inventory and Order Backlog 3Q 2023 EARNINGS RELEASE Increased Increased Unfavorable Dealer $0.6B $0.7B $0.1B Inventories1 3Q 2023 3Q 2022 3Q 2023 1 Dealers are independent businesses and control their own inventory. Note: Amounts may not add due to rounding. vs. 2Q 2023 vs. 2Q 2022 Impact on
Slide 21: Key Thoughts As We Look Ahead
3Q 2023 EARNINGS RELEASE Key Thoughts As We Look Ahead • Restructuring expense expected to be about $700 million for the full year • Capex about $1.5 billion for the full year • Estimated global tax rate of about 22.5%, excluding discrete items 21 Caterpillar: Confidential Yellow
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures 3Q 2023 EARNINGS RELEASE Note: Amounts may not add due to rounding. 22 Caterpillar: Confidential Yellow
Slide 23: Reconciliation to U.S. GAAP
Reconciliation to U.S. GAAP 3Q 2023 EARNINGS RELEASE Reconciliation of ME&T Cash Flow from Operations to ME&T Free Cash Flow Sep YTD Sep YTD (USD in billions) 3Q 2022 3Q 2023 2022 2023 ME&T cash flow from operations $ 1.9 $ 3.3 $ 3.2 $ 8.0 ME&T capital expenditures (0.3) (0.4) (0.9) (1.1) Payments m