Caterpillar, Inc. · NYSE:CAT
Caterpillar — Morgan Stanley 6th Annual Laguna Conference (September 2018)
13 slides from Caterpillar's conference presentation, Sep 14, 2018
Slide 1: Construction Industries
Construction Industries Tom Pellette, Group President
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking Statements Certain statements in this presentation 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,” “will,
Slide 3: Energy & Transportation | Construction Industries | Resource Industries
Energy & Transportation | Construction Industries | Resource Industries
Slide 4: Our CI Industries
Our CI Industries GENERAL CONSTRUCTION QUARRY & AGGREGATES ROAD CONSTRUCTION AG & LANDSCAPING HEAVY CONSTRUCTION INDUSTRIAL & WASTE FORESTRY DIVERSE MARKETS, CUSTOMERS AND SOLUTIONS 4
Slide 5: We are in Industries with Long Term Growth Potential
We are in Industries with Long Term Growth Potential INCREASED WORLD POPULATION URBANIZATION TODAY: 7.5B 2040: 9B TODAY: 55% 2040: 65% Increasing need for Industry MARKET GLOBAL up +17% VOLATILITY INFRASTRUCTURE in 2018 to continue 5
Slide 6: Product Portfolio
Product Portfolio EARTHMOVING DIVISION Medium Tractor Medium Wheel Motor Paving Products Loaders Graders Products SEM Products EXCAVATION DIVISION Track Wheel Excavators Forestry Machines Excavators Work Tools BUILDING CONSTRUCTION PRODUCTS Backhoe Small Wheel Compact Wheel Small Track- Mini Hydraul
Slide 7: CI Financial Trend
CI Financial Trend Sales, OPACC and Return on Sales (in USD Billions) Segment Profit OPACC ROS Sales* $22.0 $8.0 $20.7 20.0% $19.8 $19.2 $20.0 18.0% $7.0 $17.9 18.1% $15.7 16.9% 16.0% $6.0 $15.0 14.0% $5.0 12.0% $4.0 $10.0 $4.0 10.0% 10.2% 10.3% 10.4% $3.3 8.0% $3.0 $2.1 6.0% $5.0 6.8% $1.8 $2.0 $1.
Slide 8: CI OPACC Breakeven Improvement
CI OPACC Breakeven Improvement 40% IMPROVEMENT • OPACC Biased Resource Allocation Construction Industries OPACC Breakeven Point • Margin Improvement • Structural Cost Reduction – Competitive & Flexible Cost – Lean • Capital Efficiency and Improved Asset Turns 2012 2013 2014 2015 2016 2017 – Footprin
Slide 9: Construction Industries 'Big Rocks'
CONSTRUCTION INDUSTRIES ‘BIG ROCKS’ OPERATIONAL EXCELLENCE • Quality • End-to-End Lean • Competitive & Flexible Cost Structure EXPANDED OFFERINGS • Best Products • LCV / Utility SERVICES • Aftermarket • Retail Channel • Rental / Used 9
Slide 10: Clear Strategy | O&E Model
Clear Strategy | O&E Model • Clear DEFINITION OF WINNING • Fact Based PROFIT POTENTIAL by Market • Resources Aligned to OPACC IMPROVEMENT AGENDA • Disciplined GOVERNANCE Process 10
Slide 11: Next Gen Excavators
NEXT GEN EXCAVATORS Building a legacy that lasts… Built specifically for digital connectivity, ease-of-use and semi-automated functionality: Model 320GC Model 320 Model 323 • Improve Productivity • Lower Total Owning & Operating Costs • Decrease Downtime LOWER IMPROVED INCREASED LOWER Fuel Costs Ope
Slide 12: Scalable Customer Value – Application + Technology
Scalable Customer Value – Application + Technology General Site Work / Utility Slope & Depth Indication Advanced 2D Complex Grade Indication Applications Bulk Earthwork Slope & Depth Indication Slope & Depth Indication Bulk Earthwork Bulk Earthwork Cat Connect 320 / 323 Cat Grade with 3D Cat Connect
Slide 13: CI Key Takeaways…
CI Key Takeaways… Long term growth potential Serve a wide range of customers, industries and solutions Strong financial performance Driving growth through the O&E Model 13
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