2. 2
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
Certain statements contained in this presentation are forward-looking and involve
risks, assumptions and uncertainties that cause actual results of Caterpillar to be
materially different from those projected or implied in the forward looking
statements. In this context, words such as quot;willquot;, “believes,” “expects,” “estimates,”
“anticipates,” “will be,” “should” and similar words or expressions identify forward-
looking statements made on behalf of Caterpillar. It is important to note that actual
results of Caterpillar may differ materially from those described or implied in such
forward-looking statements based on a number of factors and uncertainties,
including, but not limited to, changes in economic conditions; currency exchange or
interest rates; political stability; market acceptance of Caterpillar's products and
services; significant changes in the competitive environment; changes in law,
regulations and tax rates; and other general economic, business and financing
conditions and factors.
A more complete summary of risks and uncertainties is described in more detail in
Caterpillar's Form 10Q filed with the Securities and Exchange Commission on May
2, 2008. Caterpillar undertakes no obligation to update these forward-looking
statements.
3. 3
Sales and Costs
Caterpillar Overview
Machinery & Engines
Sales & Revenues
Operating Costs $37B in 2007
$45B in 2007
Factory
Labor &
Material
Overhead
Costs
Machines
63%
56% 31%
30%
Engines
7%
9%
4%
SG & A
R&D
Financial Products
4. 4
End markets Machines
Infrastructure
Nonresidential Industrial
Residential
Waste Forestry
Energy
Mining & Quarrying
5. 5
From a mini-excavator that fits in
Machines the back of a pick-up to … big iron
Operator
6. 6
End markets Engines
Petroleum
Cat Machines
Electric Power
Industrial
On-Highway Marine
Truck
7. 7
Engines … and everything
in between
Model 3616
Model 3003
8. 8
Synergistic growth &
Sales and Revenues improved earnings stability
2007 Sales and Revenues
Genuine Cat
$45 Billion
Replacement Parts
Products 64%
$29 Billion
Integrated
Services 36%
Solar Customer Services
$16 Billion
9. 9
Geographic Diversity The Global Leader
Geographic Mix - Sales and Revenues
Caterpillar
• Broadest footprint in the industry
Outside Outside
• About 105,000 Employees North
North North
North
America
America America America
• About 300 Facilities 44%
43% 56%
57%
• In about 50 countries
1997 2007
Caterpillar Dealers
• 181 Cat dealers
• 3,000+ branches & rental stores
• Over 120,000 employees
10. 10
36% EPS CAGR 2002 to 2007
6 Years of Growth
Sales and Revenues Earnings Per Share
About $50 About $6.00
$45
$43
$36
$30
$23
$20
2008
2007
2005
2004 2006
2003
2002
2007 2008
2005
2004 2006
2003
2002
Outlook
Outlook
11. 11
Growth is largely
2008 Sales and Revenues outside North America
Sales and Revenues were up $2.3 Billion …. or 20% vs. the 2nd Quarter of 2007
2008 Full Year Outlook
2nd Quarter Increase by Region
Consolidated $50B, up 11%
North America Flat to up 3%
EAME Up 10–15%
Asia Pacific Up 25-30%
Latin America Up 25-30%
12. 12
Record Sales & Revenues
2nd Quarter 2008 Results and EPS despite a very
weak US economy
13. 13
We expect another
2008 Outlook record year despite U.S.
weakness
14. 14
Long-term Positive
Key Longer-term Trends for Caterpillar
We expect continued strong
growth in worldwide infrastructure
spending over the next decade
Significant growth in the developing world … and
they have the money!
Significant need to improve and rebuild
infrastructure in the developed world … after years
of under investment
15. 15
Mining & Energy A Very Positive Future
• Growing demand, particularly from the developing world
• Prolonged underinvestment in the 80’s and 90’s
16. 16
16
Replacement
Worldwide Mining Fleets opportunity
% of Machines More Than 10 Years Old (2007)
Units 657
1,160
1,075
10,254
907
7,838
69%
65%
57%
56%
54%
50%
Coal Mines Metals Mines
Source: Parker Bay.
Crawlers Trucks Wheel Loaders
17. 6.6
6.4
6.1
17
3.6
3.4
3.2 3.2
3.1
3.0
2.9
2.8 2.8
2.6 2.6
2.5
1.6
1.5
1.3
World North America EAME Latin America Asia Pacific Japan
1990 - 1999 2000 - 2008 2009 - 2017
World Economic Growth
Global infrastructure needs
Our customers
“Make Progress Possible”
No company is
better positioned
than Caterpillar
Broadest product line
On a foundation of a large
population of machines & engines
Unparalleled global dealer network Global manufacturing footprint
18. 18
Valuation We are in an unusual position
Profits have fallen faster than
• S&P 500 average PE is
stock prices … as usual for an
elevated economic downturn
Low PE at Cat usually reflects a
• Cat’s PE is 10-11 … at
peak. Current situation is:
the low end of our historic
range. • US machine sales to end users are
in the 3rd year of significant decline.
• European sales to users declining
• Asia, Africa, Middle East, CIS, Latin
America are very strong
• Energy and Mining strong worldwide
