Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q4 2022 Earnings Presentation
26 slides from Caterpillar's earnings presentation, Jan 31, 2023
Slide 1: Fourth Quarter and Full Year 2022 Financial Review
Fourth Quarter and Full Year 2022 Financial Review January 31, 2023
Slide 2: Forward-Looking Statements
4Q 2022 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
4Q 2022 EARNINGS RELEASE Strong Performance THANK YOU HEALTHY DEMAND EXECUTING OUR TO OUR STRATEGY FOR ACROSS MOST LONG-TERM GLOBAL TEAM END MARKETS PROFITABLE GROWTH 3
Slide 4: Key Takeaways: Fourth Quarter 2022 vs Fourth Quarter 2021
4Q 2022 EARNINGS RELEASE Key Takeaways Fourth Quarter 2022 vs Fourth Quarter 2021 $16.6B $1.7B $2.8B $2.79 $3.86 (29%) 20% 4% 78% 43% Sales & Operating Adjusted Profit Per Adjusted Revenues Profit Operating Share Profit Per Profit1 Share2 1 Adjusted operating profit margin is a non-GAAP measure, and
Slide 5: Key Takeaways: Full Year 2022 vs Full Year 2021
4Q 2022 EARNINGS RELEASE Key Takeaways Full Year 2022 vs Full Year 2021 $59.4B $7.9B $9.1B $12.64 $13.84 17% 15% 31% 7% 28% Sales & Operating Adjusted Profit Per Adjusted Revenues Profit Operating Share Profit Per Profit1 Share2 1 Adjusted operating profit margin is a non-GAAP measure, and a reconci
Slide 6: ME&T Free Cash Flow and Capital Deployment
4Q 2022 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment 29 $5.8B $6.7B years 2022 ME&T Returned to Dividend Free Cash Flow1 Shareholders in 2022 Aristocrat In line with ME&T FCF1 Expect to return substantially Paid higher annual dividends targets2 for full year all ME&T Free Cash Flow1
Slide 7: End Market Commentary
End Market Commentary 4Q 2022 EARNINGS RELEASE CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES ENERGY & TRANSPORTATION 7
Slide 8: Sustainability
Sustainability 4Q 2022 EARNINGS RELEASE First battery electric Expanding autonomy to large mining Quarry & Aggregates truck prototype * Logos are registered trademarks of the companies listed on the screen 8
Slide 9: Financial Results Summary
4Q 2022 EARNINGS RELEASE Financial Results Summary Fourth Quarter 2022 vs Fourth Quarter 2021 SALES & REVENUES OPERATING PROFIT ADJUSTED PROFIT (in billions of dollars) (in billions of dollars) PER SHARE1 (in dollars) $16.6 $1.7 $3.86 $13.8 $1.6 $2.69 2022 2022 2021 2022 4Q 2021 4Q 2022 1Q 2021 1Q 2
Slide 10: Consolidated Sales and Revenues
Consolidated Sales and Revenues 4Q 2022 EARNINGS RELEASE Fourth Quarter 2022 vs Fourth Quarter 2021 4th Quarter Highlights Sales & Revenues Increased $2.8B or 20% • Sales increased across the three primary segments • Favorable impact from price realization and higher sales volume • Partially offset
Slide 11: Consolidated Operating Profit
Consolidated Operating Profit 4Q 2022 EARNINGS RELEASE Fourth Quarter 2022 vs Fourth Quarter 2021 4th Quarter Highlights Operating Profit Increased $69M or 4% • Favorable price realization and increased sales volume • Mostly offset by a goodwill impairment charge, higher manufacturing costs and rest
Slide 12: 2023 Adjusted Operating Profit Margin Target
4Q 2022 EARNINGS RELEASE 2023 Adjusted Operating Profit Margin1 Target 25% • Progressive adjusted operating profit margin1 targets Adjusted Operating Profit Margin %1 21.0% 20% • Updating curve for extraordinary inflation 17.0% 18.0% 15% 13.0% • Curve reflects ~9% global inflation2 for 2022 14.0% 10
Slide 13: Construction Industries
Construction Industries 4Q 2022 EARNINGS RELEASE Fourth Quarter 2022 vs Fourth Quarter 2021 4th 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 $1,109M or 19% • North America – Favorabl
Slide 14: Resource Industries
Resource Industries 4Q 2022 EARNINGS RELEASE Fourth Quarter 2022 vs Fourth Quarter 2021 4th 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 $717M or 26% • Favorable price realization an
Slide 15: Energy & Transportation
Energy & Transportation 4Q 2022 EARNINGS RELEASE Fourth Quarter 2022 vs Fourth Quarter 2021 4th 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 $1,095M or 19% • Oil and Gas – Increase i
Slide 16: Financial Products
Financial Products 4Q 2022 EARNINGS RELEASE Fourth Quarter 2022 vs Fourth Quarter 2021 Total Revenues* Segment Profit 4th Quarter Highlights (in millions of dollars) (in millions of dollars) Total Revenues Increased $77M or 10% $853 • Higher average financing rates across all regions $776 $248 $189
Slide 17: ME&T Free Cash Flow and Capital Deployment
4Q 2022 EARNINGS RELEASE ME&T Free Cash Flow1 and Capital Deployment $3.0B $1.5B $7.0B 4Q ME&T Returned to Enterprise Cash Free Cash Flow1 Shareholders in 4Q 2022 Balance Expect to return substantially all Through share repurchases Liquidity remains strong ME&T Free Cash Flow1 to and dividends share
Slide 18: Key Thoughts For Full-Year 2023
4Q 2022 EARNINGS RELEASE Key Thoughts For Full-Year 2023 • Expect sales in 2023 to increase versus 2022 supported by favorable price • Expect stronger sales to users in 2023 and no significant change in dealer inventory1 by year-end • Expect 2023 adj. operating profit2 to increase versus 2022 and to
Slide 19: Key Takeaways
4Q 2022 EARNINGS RELEASE Key Takeaways EXECUTING OUR STRATEGY STRONG FINANCIAL $3.0B IN SERVICES FOR LONG-TERM PERFORMANCE ME&T FREE REVENUES2 IN 2022 CASH FLOW1 IN INCREASED TO PROFITABLE 4Q 2022 $22 BILLION GROWTH IN 2022 1 ME&T free cash flow represents ME&T operating cash flow less capital expen
Slide 20: We Help Our Customers Build a Better, More Sustainable World
4Q 2022 EARNINGS RELEASE WE HELP OUR CUSTOMERS BUILD A BETTER, MORE SUSTAINABLE WORLD. CATERPILLAR 0
Slide 21: 2023 Caterpillar Earnings Call Schedule
4Q 2022 EARNINGS RELEASE 2023 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 1st Quarter 2023 Thursday, April 27, 2023 8:30 a.m. Eastern 2nd Quarter 2023 Tuesday, August 1, 2023 8:30 a.m. Eastern 3rd Quarter 2023 Tuesday, October 31, 2023 8:30 a.m. Eastern 21
Slide 22: Dealer Inventory and Order Backlog
Dealer Inventory and Order Backlog 4Q 2022 EARNINGS RELEASE Increased Decreased Favorable Dealer $0.7B $0.1B $0.8B Inventories1 4Q 2022 4Q 2021 4Q 2022 1Dealers are independent businesses and control their own inventory. Note: Amounts may not add due to rounding. vs. 3Q 2022 vs. 3Q 2021 Impact on To
Slide 23: Non-GAAP Financial Measures
4Q 2022 EARNINGS RELEASE Non-GAAP Financial Measures Note: Amounts may not add due to rounding. 23
Slide 24: Reconciliation to U.S. GAAP
Reconciliation to U.S. GAAP 4Q 2022 EARNINGS RELEASE Reconciliation of ME&T Cash Flow from Operations to ME&T Free Cash Flow (USD in billions) 2021 2022 ME&T cash flow from operations $ 7.2 $ 6.4 ME&T capital expenditures (1.1) (1.3) Payments made related to settlements with IRS - 0.7 ME&T free cash
Slide 25: Consolidated Full Year Sales and Revenues
Consolidated Full Year Sales and Revenues 4Q 2022 EARNINGS RELEASE Full Year 2022 vs Full Year 2021 25
Slide 26: Consolidated Full Year Operating Profit
Consolidated Full Year Operating Profit 4Q 2022 EARNINGS RELEASE Full Year 2022 vs Full Year 2021 1 1 Includes restructuring expenses for both ME&T and Financial Products 26