Drew Osika Jack Hainline Dan Glotzbach Greg Bruno December 7, 2010

Agenda  Company Overview  Sources of Revenue  Recent Financial Results  SWOT  Management Assessment  Competitors  Valuation

Company Overview  The company traces its origins back to the 1925, merger between C.L. Best and Holt Caterpillar which formed Caterpillar Tractor Co. The name was changed to Caterpillar Inc. in  Began trading on the NYSE exchange January 2, 1962, under the ticker symbol CAT.  Headquartered in Peoria, IL, and has 102,336 employees worldwide.  Chairman and CEO – Douglas Oberhelman  CAT manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide.  CAT is an industry leader and the company’s products are recognized worldwide.

Sources of Revenue  Machinery Manufactures and sells construction, mining, and forestry machines. Has over 300 different types of machines ranging from skid loaders and backhoe loaders to underground mining equipment and articulated trucks. This sector represented 65% of 3Q 2010 revenue. Quarterly Results for 3Q 2010 Page 7

Sources of Revenue  Engines World’s largest manufacturer of medium speed engines and also the world’s largest manufacturer of high speed diesel engines. Caterpillar engines provide power to trucks, ships and boats, and their own construction and mining equipment. This sector represented 29% of 3Q 2010 revenue. Quarterly Results for 3Q 2010 Page 7

Sources of Revenue  Financial Products Provides financing alternatives and loans to customers and dealers for Caterpillar’s machinery, engines, and other equipment and marine vessels. They also offer different types of insurance to customers and dealers to support the purchase of their equipment. This sector represented 6% of 3Q 2010 revenue. Quarterly Results for 3Q 2010 Page 7

Recent Financial Results  3Q 2010 Earnings Reported October 21, 2010 CAT realized a profit of $796 M for the quarter, 96% higher than the 3Q 2009 number of $404 M Profit/Share was $1.22 an increase from $0.64 for 3Q 2009 and an increase from the 2Q 2010 number of $1.09 Sales and Revenue were $ B for the quarter, 53% higher than the 3Q 2009 number of $7.298 B 2010 is shaping up to be one of the most significant YOY increases in sales and revenue in the company’s history 2010 Profit/Share revised to $3.80 to $4.00 from the 2Q 2010 range of $3.15 to $3.85 Preliminary 2011 sales and revenue expected to reach $50 B with continued growth in developing countries and weak, but continued, growth in the developed countries. Quarterly Results for 3Q 2010 Pages 1 and 5 pm.pdf

Recent Financial Results (Revenue in Billions of $) Quarterly Results for 4Q 2009 – 3Q 2010 Page 5 in all reports

Revenue Breakdown Geographically for 3Q % Quarterly Results for 3Q 2010 Page 7

SWOT Analysis  Strengths: Global Market Leader / Brand Strength Diversified Revenue Streams Innovation  Weaknesses: Highly Debt Leveraged (Slow Improvement) Reliance on Credit Sales to Customers

SWOT Analysis  Opportunities: Investment in Emerging Markets Expect large increase in excavator production capacity in China Continued Expansion into Mining Industry (November Acquisition of Bucyrus International Inc.)  Threats: Manufacturing Capacity to Meet Growing Sales Demand Changing prices in raw material inputs (Hedge only for foreign exchange/interest rates)

Management Assessment  “How We Win”  Strategic Initiatives  Focus: Rising demand in energy and the ability of CAT to provide an efficient product  Continued Global Leadership and Growth M&A and Direct Investment  Dividends per share continue to rise

Competitors  Deere & Company Leading producer of agricultural and forestry equipment  Komatsu Ltd. World’s 2 nd largest manufacturer of construction and mining equipment Larger presence than CAT in China and Japan  CNH Global Created in 1999 after New Holland N.V. and Case Corporation merged Fiat S.p.A. owns the majority of CNH’s common shares  Volvo AB Diverse business that competes with CAT on construction equipment, heavy-duty trucks and engines.

5-Year Stock Performance

Comparable Analysis  Multiples are in line with industry  Heavy debt but large future earnings growth expected

Comparable Analysis

Recommendation  Do not recommend a buy at this time. Put on Watch List.