Call Start: 08:30 January 1, 0000 9:28 AM ET Caterpillar Inc. (NYSE:CAT) Q2 2021 Earnings Conference Call July 30, 2021 8:30 AM ET Company Participants Jim Umpleby – Chairman of the Board and CEO Andrew Bonfield – CFO Kyle Epley – Vice President of Global Finance Services Division Rod Rengle – Senior IR Manager Jennifer Driscoll – Director of Investor Relations Conference Call Participants Jamie Cook – Credit Suisse Jerry Revich – Goldman Sachs Rob Wertheimer – Melius Research David Raso – Evercore ISI Step ...

Caterpillar Inc. Conference Call Summary Company Overview - **Company**: Caterpillar Inc. (NYSE: CAT) - **Event**: Alliance Bernstein 37th Annual Strategic Decisions Conference - **Date**: June 2, 2021 Key Points Company Strategy - **Three Main Pillars**: - **Operational Excellence**: Focus on safety, quality, lean operations, and a competitive cost structure [5] - **Expanded Offerings**: Introduction of life cycle value products to capture a broader customer base without discounting premium products [6] - **Services**: Emphasis on post-sale customer support to drive long-term profitable growth [7] Financial Performance - **Investor Day Targets**: Caterpillar aims to achieve 300 to 600 basis points higher operating margin compared to historical performance (2010-2016) [8] - **Free Cash Flow**: Achieved $5 billion to $6 billion in free cash flow from 2017 to 2019, and over $3 billion during the pandemic despite a 22% drop in top-line revenue [10] - **Dividends**: Caterpillar has a history of 27 years of increasing dividends, with intentions to return all free cash flow to shareholders [10] Services Growth - **Revenue Target**: Aim to double services revenue from $14 billion in 2016 to $28 billion by 2026 [11] - **Digital Investments**: Significant investments in digital capabilities, including AI and connected assets, to enhance service offerings [11] Sustainability Initiatives - **2030 Goals**: New sustainability report with aggressive goals for operations and customer support in achieving sustainability objectives [12] - **Innovative Products**: Introduction of products like dynamic gas blending engines and hydrogen-capable engines to reduce carbon footprints [13] Mining Sector Opportunities - **Commodity Demand**: Strong demand for commodities driven by energy transition, with Caterpillar positioned to benefit from this trend [14] - **Autonomous Solutions**: Caterpillar has hundreds of autonomous trucks in operation, enhancing productivity and operational efficiency [15] Supply Chain and Pricing - **Supply Chain Challenges**: Acknowledgment of ongoing supply chain issues, particularly with semiconductors, but efforts to mitigate impacts on customer demand [28] - **Pricing Power**: Caterpillar is focused on maintaining competitive pricing while managing structural costs and leveraging strong commodity prices for operational leverage [25] Competitive Landscape - **China Market**: Caterpillar has a strong presence in China, accounting for 5% to 10% of revenues, and is focused on competing effectively against local players [47] - **Autonomous Technology**: Continuous investment in autonomous solutions, including recent acquisitions to enhance capabilities [52] Future Outlook - **Investment in R&D**: Caterpillar is committed to investing in R&D to remain competitive, particularly in digital and sustainability initiatives [66] - **Portfolio Optimization**: Ongoing evaluation of business units to ensure resources are allocated to areas with the best growth potential [72] Cash Flow Management - **Channel Inventory Management**: Introduction of new processes to optimize dealer inventory and reduce volatility in supply [76] Additional Insights - **Customer Engagement**: Caterpillar is actively engaging with customers to understand their needs for sustainability and product offerings [44] - **Service Growth Focus**: Construction industries represent the largest opportunity for service growth, with strategies in place to enhance service offerings across all segments [60] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Caterpillar's commitment to operational excellence, sustainability, and customer success in a competitive landscape.

Caterpillar Inc. (NYSE:CAT) Q1 2021 Earnings Conference Call April 29, 2021 8:30 AM ET Company Participants Jennifer Driscoll - Director, Investor Relations Jim Umpleby - Chairman and Chief Executive Officer Andrew Bonfield - Chief Financial Officer Kyle Epley - Vice President, Global Finance Services Division Rob Rengel - Senior IR Manager Conference Call Participants Ann Duignan - JPMorgan Brett Linzey - Vertical Research Jamie Cook - Credit Suisse Mircea Dobre - Baird Rob Wertheimer - Melius Research Ros ...

Financial Performance - Caterpillar's adjusted operating profit for the three months ended December 31, 2020, was $1438 million, resulting in an adjusted operating profit margin of 12.8%[17] - For the same period in 2019, the adjusted operating profit was $1904 million, with an adjusted operating profit margin of 14.5%[17] - For the full year 2020, Caterpillar's adjusted operating profit was $4907 million, yielding an adjusted operating profit margin of 11.8%[17] - In 2019, the full-year adjusted operating profit was $8526 million, and the adjusted operating profit margin was 15.8%[17] - Caterpillar returned 110% of ME&T (Machinery, Energy & Transportation) Free Cash Flow to shareholders[7] - Services revenues reached $16 billion[7] Segment Performance - Construction Industries sales amounted to $16.9 billion with a segment margin of 14.0%[7] - Energy & Transportation sales reached $17.5 billion with a segment margin of 13.8%[9] Cash Flow - ME&T free cash flow was $3.1 billion in 2020[19] - ME&T free cash flow was $5.3 billion in 2019[20] Strategy and Innovation - New GX Excavator models were launched in China, with 2 released and 3 more expected in 2021[10] - Customers using MineStarTM technology have seen productivity increases of up to 30%[10]

Caterpillar Inc (NYSE:CAT) Conference Call Summary Company Overview - **Company**: Caterpillar Inc - **Date**: March 2, 2021 - **Participants**: - Jennifer Driscoll - Director of Investor Relations - Andrew Bonfield - CFO Key Points Financial Performance - **Sales and Revenues**: $41.7 billion, down 22% year-on-year [4] - **Adjusted Operating Margins**: 11.8%, down 400 basis points due to lower volume and unfavorable pricing [4] - **Profit per Share**: - Down to $5.46 (adjusted profit per share) [4] - Restructuring profit per share: $6.56 [4] - **Free Cash Flow**: Returned 110% of ME&T free cash flow to shareholders over the last three years, retiring approximately 10% of average shares [4] Market Segments - **Services Revenue**: Represented about 41% of total ME&T sales, although down year-on-year [6] - **Sales Decline**: All three segments saw sales down by over 20% [6] - **New Product Launch**: Launched GX excavators in China, targeting utility-type customers [7][8] Investment and R&D - **Investment in Business**: Continued investment in R&D despite pandemic challenges [9] - **Focus on Electrification and Hydrogen Technologies**: Significant investments in these areas, including a Clean Air Excellence Award for Dynamic Gas Blending engine [10][11] Operational Excellence - **Operational Focus**: Emphasis on improving efficiency and reducing procurement costs [12][14] - **Restructuring**: Sale of marine propulsion business and restructuring of longwall mining and hydraulic mining shovels businesses [13] Market Outlook - **Upcycle Capacity**: Sufficient capacity for the upcoming upcycle, with modest CapEx needs anticipated [16] - **Cash Generation**: Generated $3.1 billion in cash flow during a down year, indicating strong cash generation ability [17] - **Revenue and EPS Growth**: Historical framework suggests revenues could more than double and EPS could triple in a recovery cycle [19][21] Strategic Acquisitions - **M&A Strategy**: Focus on opportunistic acquisitions aligned with market conditions and strategic goals, including technology and services [26][28] - **Recent Acquisition**: Acquired Marble Robotics to enhance capabilities in autonomy within mining [28] Autonomy and Technology - **Growing Interest in Autonomy**: Increased conversations with Tier 1 miners regarding autonomous solutions [38] - **Challenges in Retrofitting**: Existing mines face challenges in retrofitting for autonomy due to infrastructure needs [39] ESG and Future Investments - **Commitment to ESG**: Investments in technologies that reduce emissions and improve sustainability [10][11] - **Future Technology Focus**: Open to acquiring technologies that enhance competitive advantage, particularly in electrification [34][35] Conclusion - **Positive Outlook for 2021**: Expectations for a positive year ahead, with a focus on meeting demand and managing supply effectively [45] This summary encapsulates the key insights from the conference call, highlighting Caterpillar's financial performance, market strategies, and future outlook.