Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q4 2021 Earnings Presentation
24 slides from Caterpillar's earnings presentation, Jan 28, 2022
Slide 1: Fourth Quarter and Full Year 2021 Financial Review
Fourth Quarter and Full Year 2021 Financial Review January 28, 2022 | 1
Slide 2: Forward-Looking Statements
4Q 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 BEST SAFETY STRONG TO OUR GLOBAL TEAM PERFORMANCE ON RECORD END-USER DEMAND | 3
Slide 4: Financial Results Summary
Financial Results Summary Fourth Quarter 2021 vs. Fourth Quarter 2020 Sales Operating Profit Adjusted Profit & Revenues Profit Margin1 Per Share Per Share2 $13.8B 11.7% $3.91 $2.69 (0.6pts) 23% 175% 27% 1 Adjusted operating profit margin in the fourth quarter of 2021 was 11.4%. Adjusted operating pr
Slide 5: Investor Day Update
Investor Day Update Met Investor Day Returned to Services Targets1 Shareholders in 2021 Growth 4 5 $5B $19B Adjusted Operating Profit Margin2 Proud of our status as a 17% growth from and ME&T Free Cash Flow3 Dividend Aristocrat prior year 1 Investor Day Targets based on Caterpillar Investor Day held
Slide 6: End Market Commentary
End Market Commentary CONSTRUCTION INDUSTRIES RESOURCE INDUSTRIES RESOURCE ENERGY INDUSTRIES & TRANSPORTATION | 6
Slide 7: Building a Better, More Sustainable World
Building a Better, More Sustainable World Microsoft and Ballard Data Center Collaboration Surface and underground autonomous zero-emissions mining equipment and technology Cat sustainable backup power using hydrogen fuel cells BNSF and Chevron Union Pacific Hydrogen Collaboration 2015-019 working in
Slide 8: Financial Results Summary
Financial Results Summary Fourth Quarter 2021 vs. Fourth Quarter 2020 SALES & OPERATING ADJUSTED PROFIT REVENUES PROFIT PER SHARE1 (in billions of dollars) (in billions of dollars) (in dollars) $13.8 $1.6 $2.69 $11.2 $1.4 $2.12 2020 2021 2020 4Q 2021 1Q 2021 4Q 2020 1Q 2020 4Q2018 4Q2019 4Q 4Q 1 Fou
Slide 9: Consolidated Sales & Revenues
Consolidated Sales & Revenues Fourth Quarter 2021 vs. Fourth Quarter 2020 4th Quarter Highlights Sales & Revenues Increased $2.6B or 23% • Higher sales across the primary segments • Strong end-user demand • Favorable impact from changes in dealer inventories • Favorable price realization | 9
Slide 10: Consolidated Operating Profit
Consolidated Operating Profit Fourth Quarter 2021 vs. Fourth Quarter 2020 4th Quarter Highlights Operating Profit Increased $0.2B or 17% • Increased sales volume • Favorable price realization • Higher manufacturing costs • Unfavorable SG&A/R&D expenses | 10
Slide 11: Construction Industries
Construction Industries Fourth Quarter 2021 vs. Fourth Quarter 2020 Total Sales* Segment Profit Segment Profit 4th Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $1,228M or 27% 14.0% • North America – Higher volume and favorabl
Slide 12: Resource Industries
Resource Industries Fourth Quarter 2021 vs. Fourth Quarter 2020 Total Sales* Segment Profit Segment Profit 4th Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $582M or 27% $2.8 • Higher end-user demand for equipment and aftermar
Slide 13: Energy & Transportation
Energy & Transportation Fourth Quarter 2021 vs. Fourth Quarter 2020 Total Sales* Segment Profit Segment Profit 4th Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increased $917M or 19% $5.7 • Oil and Gas – Increase in reciprocating engin
Slide 14: Financial Products
Financial Products Fourth Quarter 2021 vs. Fourth Quarter 2020 Total Revenues* Segment Profit 4th Quarter Highlights (in millions of dollars) (in millions of dollars) Total Revenues Increased $33M or 4% • Portfolio remained strong $776 $248 $743 • Favorable trend in new retail lending $195 Segment P
Slide 15: Balance Sheet and Capital Deployment
Balance Sheet and Capital Deployment ME&T Free Returned to Enterprise Cash Cash Flow1 Shareholders in 2021 Balance $1.8B in 4Q $5.0B $9.3B $6.0B for full-year 2021 Through share repurchases Strong balance sheet and dividends 1 ME&T Free Cash Flow represents ME&T operating cash flow less capital expe
Slide 16: Key Thoughts As We Look Ahead
Key Thoughts As We Look Ahead • Expect stronger sales in 1Q 2022 versus 1Q 2021; continued strong end-user demand and favorable price • Expect headwinds to adjusted operating profit margin1 in 1Q 2022 versus 1Q 2021; margins to improve throughout 2022 • Anticipate price increases to offset manufactu
Slide 17: Key Takeaways
Key Takeaways Achieved Investor Day targets1 for both Continued strength Continuing to execute strategy for Adjusted Operating Profit Margin2 in end-user demand long-term profitable growth in a and ME&T Free Cash Flow3 challenging environment 1 Investor Day Targets based on Caterpillar Investor Day
Slide 18: Q&A
4Q 2021 EARNINGS RELEASE Q&A | 18
Slide 19: 2022 Caterpillar Earnings Call Dates
2022 Caterpillar Earnings Call Dates Earnings Quarter Release Date Call Time 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 Thursday, October 27, 2022 8:30 a.m. Eastern | 19
Slide 20: Dealer Inventory, Order Backlog and ME&T Services
Dealer Inventory, Order Backlog and ME&T Services Decreased Decreased Favorable Dealer $0.1B $1.1B $1.0B Inventories1 4Q 2021 4Q 2020 4Q 2021 1Dealers are independent businesses and control their own inventory. Change Change Impact on Sales Increased Increased Increased Order $2.5B $2.2B $8.9B Backl
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) 2020 2021 ME&T cash flow from operations $4.1 $7.2 ME&T capital expenditures (1.0) (1.1) ME&T free cash flow $3.1 $6.0 Note: See reconciliation of ME&T cash flow from operations to c
Slide 23: Consolidated Full Year Sales and Revenues
Consolidated Full Year Sales and Revenues Full Year 2021 vs. Full Year 2020 | 23
Slide 24: Consolidated Full Year Operating Profit
Consolidated Full Year Operating Profit Full Year 2021 vs. Full Year 2020 | 24