Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q1 2021 Earnings Presentation
22 slides from Caterpillar's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Financial Review
First Quarter 2021 Financial Review April 29, 2021 | 1
Slide 2: Forward-Looking Statements
1Q 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 Performance from our Global Team
Strong Performance from our Global Team SAFELY CONTINUED SALES GROWTH AND SUPPORTING EXECUTING OUR MARGIN EXPANSION OUR CUSTOMERS STRATEGY ACROSS THREE PRIMARY SEGMENTS | 3
Slide 4: Financial Results Summary
Financial Results Summary First Quarter 2021 vs. First Quarter 2020 Sales Operating Profit Adjusted Profit & Revenues Profit Margin Per Share Per Share1 $11.9B 15.3% $2.77 $2.87 12% 2.1pts 40% 74% 1 First-quarter 2021 adjusted profit per share excluded restructuring expenses of $0.10 per share. Firs
Slide 5: End Market Commentary
End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES RESOURCE ENERGY INDUSTRIES & TRANSPORTATION | 5
Slide 6: 2021 versus Investor Day Targets
2021 versus Investor Day Targets EXPECT TO MEET EXPECT TO ACHIEVE PAID HIGHER ANNUAL ADJUSTED OPERATING ME&T FREE CASH DIVIDENDS FOR 27 MARGIN TARGET FLOW TARGET CONSECUTIVE YEARS | 6
Slide 7: Advancing Our Strategy
Advancing Our Strategy Launched Leveraging Diversity and SPM Oil & Gas Connected Inclusion Report Assets | 7
Slide 8: Financial Results Summary
Financial Results Summary First Quarter 2021 vs. First Quarter 2020 SALES & REVENUES OPERATING PROFIT ADJUSTED PROFIT (in billions of dollars) (in billions of dollars) PER SHARE1 (in dollars) $11.9 $2.87 $10.6 $1.8 $1.4 $1.65 1Q 2021 2020 2021 1Q 2020 2020 1Q 2021 1Q 2020 1Q2018 1Q2019 1Q 1 First-qu
Slide 9: Consolidated Sales & Revenues
Consolidated Sales & Revenues First Quarter 2021 vs. First Quarter 2020 1st Quarter Highlights Sales & Revenues Increased $1.3B or 12% • Sales volume increased across the three primary segments • Strong growth in Asia Pacific, Latin America and EAME, while North America was flat • Higher end-user de
Slide 10: Consolidated Operating Profit
Consolidated Operating Profit First Quarter 2021 vs. First Quarter 2020 1st Quarter Highlights Operating Profit Increased $410M or 29% • Increased sales volume • Strength in Financial Products • Unfavorable SG&A/R&D expenses, driven by reinstatement of incentive compensation • Unfavorable price real
Slide 11: Construction Industries
Construction Industries First Quarter 2021 vs. First Quarter 2020 Total Sales* Segment Profit Segment Profit 1st Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $1,153M or 27% 19.0% • Asia/Pacific – Increase due to higher sales
Slide 12: Resource Industries
Resource Industries First Quarter 2021 vs. First Quarter 2020 Total Sales* Segment Profit Segment Profit 1st Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $132M or 6% • Increase due to impact of changes in dealer inventories $
Slide 13: Energy & Transportation
Energy & Transportation First Quarter 2021 vs. First Quarter 2020 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 $158M or 4% $666 • Oil and Gas – Increase in reciprocating engine $
Slide 14: Financial Products
Financial Products First Quarter 2021 vs. First Quarter 2020 Total Revenues* Segment Profit 1st Quarter Highlights (in millions of dollars) (in millions of dollars) Total Revenues Decreased ($53M) or (7%) • Lower average financing rates $814 $244 $761 • Lower average earning assets Segment Profit In
Slide 15: ME&T Free Cash Flow and Capital Deployment
ME&T Free Cash Flow1 and Capital Deployment 1Q ME&T Free Enterprise Cash Capital Cash Flow1 Balance Deployment $1.7B $11.3B On track to deliver 21% increase from Intention remains to return Investor Day ME&T FCF 4Q 2020 substantially all ME&T FCF targets for 2021 through the cycles 1 ME&T Free Cash
Slide 16: 2Q 2021 Key Thoughts
2Q 2021 Key Thoughts We expect: • Normal seasonality for 2Q • Sales to users to improve in Construction Industries, led by North America • Improving end-user demand in Resource Industries in both Mining as well as Heavy Construction and Quarry and Aggregates • Sales in Energy & Transportation to inc
Slide 17: Key Takeaways
Key Takeaways Expect to deliver Sales and Margin improvement Continuing to execute our Investor Day targets across the three primary strategy for for both Adjusted Operating segments while proactively long-term Margin and managing supply chain risks profitable growth ME&T Free Cash Flow1 1 ME&T Free
Slide 18: 1Q 2021 Earnings Release
1Q 2021 EARNINGS RELEASE OUR SOLUTIONS HELP OUR CUSTOMERS BUILD A BETTER WORLD CATERPILLAR |
Slide 19: 2021 Caterpillar Earnings Call Schedule
2021 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 2nd Quarter 2021 Friday, July 30, 2021 8:30 a.m. Eastern 3rd Quarter 2021 Thursday, October 28, 2021 8:30 a.m. Eastern | 19
Slide 20: Dealer Inventory and Order Backlog
Dealer Inventory and Order Backlog Increased Increased Favorable Dealer $0.7B $0.1B $0.5B Inventories* 1Q 2021 1Q 2020 1Q 2021 *Dealers are independent businesses and control their own inventory Note: Amounts may not add due to rounding vs. 4Q 2020 vs. 4Q 2019 Impact on Sales Increased Increased Inc
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) 1Q 2020 1Q 2021 ME&T cash flow from operations $0.3 $1.9 ME&T capital expenditures (0.3) (0.3) ME&T free cash flow $0.0 $1.7 Note: Amounts may not add due to rounding. Note: See reco