2. Company Overview World’s largest manufacturer of heavy equipment Markets include construction, mining, agriculture, forestry, and many others Recent acquisition of Bucyrus Competitors Deere & Co., Komatsu Ltd., Joy Mining, CNH Global
3. Additional Brands CAT Logistics World-class supply chain management Serves more than 60 global firms Aerospace, oil and gas, industrial, and high tech CAT Financial Provide customers with a means of financing equipment purchases Insurance provided as well
4. Financial Analysis Strong recovery in 2010 from 2009. Surpassed 2010 2nd quarter figures for 2011. Growth of company continues.
5. Financial Analysis Increased efficiency of assets. Exceptional profitability increase after 2009 economic downturn.
9. Strategy Execute the Business Model Execute at Product Development Simplify and attack cost structure Achieve profit and cash pull through Win in China… grow to leadership in India, ASEAN and CIS Achieve profitable global machine leadership Expand leadership in Mining and Quarry & Aggregates Aggressively grow Power Systems “Big 8” Imperatives
10. Vision Caterpillar is the recognized leader everywhere it does business Our Products, services and solutions help the customer succeed Our distribution system is the competitive advantage Our supply chain is world class
11. Vision Our business model drives superior results Our people are talented and live Our Values in Action Our work today helps our customers create a more sustainable world Our financial performance consistently rewards our stockholders
12. Values Integrity The Power of Honesty Excellence The Power of Quality Teamwork The Power of Working Together Commitment The Power of Responsibility
13. Goals Delivering Superior Results EPS, OPACC, Cash Flow Delivering the Best Team of People World class safety and inclusion Global Leader Everywhere We Do Business Product Quality, PINS, aftermarket parts growth
15. Porter Generic Strategy Differentiation Strategy Michael Porter uses Caterpillar as an example for this strategy Vast Dealer Network - 3,500 Dealers Worldwide in more than 180 Countries Spare-Parts Availability Brand Identity- Quality/Durable Products
35. Questions for the CEO With the recent acquisition of Bucyrus, do you see Caterpillar continuing to pursue further mining acquisitions to increase its market coverage? Caterpillar has acknowledged that their competitor Komatsu is beating them in price. What are some of the ways the Caterpillar is looking at to lower total ownership costs, to better position the company to compete with Komatsu on a cost basis?