Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q2 2021 Earnings Presentation
22 slides from Caterpillar's earnings presentation, Jul 30, 2021
Slide 1: Second Quarter 2021 Financial Review
Second Quarter 2021 Financial Review July 30, 2021 | 1
Slide 2: Forward-Looking Statements
2Q 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 THANK YOU CONTINUED HIGHER TO OUR EXECUTION OF END-USER DEMAND GLOBAL TEAM OUR STRATEGY | 3
Slide 4: Financial Results Summary
Financial Results Summary Second Quarter 2021 vs. Second Quarter 2020 Sales Operating Profit Adjusted Profit & Revenues Profit Margin1 Per Share Per Share2 $12.9B 13.9% $2.56 $2.60 29% 6.1pts 205% 105% 1 Adjusted operating profit margin in the second quarter of 2021 was 14.1%. Adjusted operating pro
Slide 5: Investor Day Targets
Investor Day Targets 2Q ME&T Free Returned to Achieve Investor Cash Flow1 Shareholders in 2Q Day Targets $1.7B $0.8B Strong cash generation Announced 8% increase in Adjusted Operating in the quarter quarterly dividend and Profit Margin2 and resumed share repurchases ME&T Free Cash Flow1 1 ME&T Free
Slide 6: End Market Commentary
End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES RESOURCE ENERGY INDUSTRIES & TRANSPORTATION | 6
Slide 7: Sustainability Progress
Sustainability Progress Sustainability Report & Nouveau Monde Climate and Energy Graphite Inc. Statement Zero-emission solution with Cat® machines by 2028 | 7
Slide 8: Financial Results Summary
Financial Results Summary Second Quarter 2021 vs. Second Quarter 2020 SALES & REVENUES OPERATING PROFIT ADJUSTED PROFIT (in billions of dollars) (in billions of dollars) PER SHARE1 (in dollars) $1.8 $12.9 $2.60 $10.0 $0.8 $1.27 2Q 2021 2020 2021 2Q 2020 2020 1Q 2021 1Q 2020 2Q2018 2Q2019 2Q 2Q 1 Sec
Slide 9: Consolidated Sales & Revenues
Consolidated Sales & Revenues Second Quarter 2021 vs. Second Quarter 2020 2nd Quarter Highlights Sales & Revenues Increased $2.9B or 29% • Sales higher across all regions and segments • Higher end-user demand • Favorable impact from changes in dealer inventories • Favorable currency and price realiz
Slide 10: Consolidated Operating Profit
Consolidated Operating Profit Second Quarter 2021 vs. Second Quarter 2020 2nd Quarter Highlights Operating Profit Increased $1.0B or 128% • Increased sales volume • Favorable price realization • Strength in Financial Products • Lower restructuring expenses (included in Other) • Unfavorable SG&A/R&D
Slide 11: Construction Industries
Construction Industries Second Quarter 2021 vs. Second Quarter 2020 Total Sales* Segment Profit Segment Profit 2nd Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $1,608M or 40% • North America – Higher sales volume and favorabl
Slide 12: Resource Industries
Resource Industries Second Quarter 2021 vs. Second Quarter 2020 Total Sales* Segment Profit Segment Profit 2nd Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $753M or 41% 14.0% • Increase due to higher end-user demand for equip
Slide 13: Energy & Transportation
Energy & Transportation Second Quarter 2021 vs. Second Quarter 2020 Total Sales* Segment Profit Segment Profit 2nd Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $826M or 20% • Oil and Gas – Increase in reciprocating engine $73
Slide 14: Financial Products
Financial Products Second Quarter 2021 vs. Second Quarter 2020 Total Revenues* Segment Profit 2nd Quarter Highlights (in millions of dollars) (in millions of dollars) Total Revenues Increased $11M or 1% • Growth in new business volume, led by North America $763 $774 $243 Segment Profit Increased $95
Slide 15: Investor Day Targets
Investor Day Targets Achieve Investor Returned to Capital Day Targets Shareholders in 2Q Deployment $0.8B Adjusted Operating Profit Margin1 Announced increase in dividend Maintained status as and ME&T Free Cash Flow2 and resumed share repurchases a Dividend Aristocrat 1 Adjusted operating profit mar
Slide 16: Key Thoughts As We Look Ahead
Key Thoughts As We Look Ahead • Expect strong volume growth in 3Q 2021 while managing supply chain challenges • Within machines, expect price to offset higher manufacturing costs for FY 2021 • Expect 3Q 2021 adjusted operating profit margin1 to be higher than 3Q 2020 on increased volume; margins to
Slide 17: Key Takeaways
Key Takeaways Continuing to execute our Strong demand Expect to deliver Investor Day targets for strategy for long-term in all regions both Adjusted Operating Profit Margin1 profitable growth and ME&T Free Cash Flow2 1 Adjusted operating profit margin is a non-GAAP measure and a reconciliation to th
Slide 18: Q&A
2Q 2021 EARNINGS RELEASE Q&A | 18
Slide 19: 2021 Caterpillar Earnings Call Schedule
2021 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 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 Decreased Decreased Favorable Dealer ($0.4B) ($1.4B) $1.0B Inventories* 2Q 2021 2Q 2020 2Q 2021 *Dealers are independent businesses and control their own inventory Note: Amounts may not add due to rounding vs. 1Q 2021 vs. 1Q 2020 Impact on Sales Increased Increased
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) 2Q 2020 2Q 2021 ME&T cash flow from operations $0.7 $1.9 ME&T capital expenditures (0.2) (0.2) ME&T free cash flow $0.5 $1.7 Note: See reconciliation of ME&T cash flow from operation