Mining & Construction Equipment Division Decatur, Illinois February 1, 2006

85,000+ employees who ­generate over $36 billion in annual sales and revenues ­work on every continent of the world ­share a vision of $50 billion ­share a mission to make progress possible around the world

World's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. ­Build roads, dams, houses and mines. ­Provide transportation and electric power to the world. ­Support the logistics needs of a variety of companies. Technology leader in construction, transportation, forestry, energy, logistics and electric power generation.

Caterpillar Confidential: Green (11/09/05)

We design, develop and deliver superior products... that delight our customers.... that deliver superior value to our customers.... that give our customers the best alternate. Superior products Superior products is our Driving Force. The best product always wins. Our products are the reason every job here exists.

We design, develop and deliver superior products which create excellent value for our: Excellent Value... Customers: Product and Delivery Performance... Employees: Fulfillment, Development, Compensation... Community: Growth, Philanthropy and Environment... Suppliers: Collaboration, Development and Sales... Stockholders: Share Value and Dividends

... from the money we make selling our products we create value that :... pays our salaries, benefits and retirement... pays our suppliers... allows us to invest in future products... allows us to invest in our plant... allows us to invest in our community Excellent Value

We are proud to be healthy, high-performing members of Team Caterpillar that design, develop and deliver superior products which create excellent value for our employees, customers, suppliers, stockholders and community. One healthy, high-performing team Engaged people are critical to our success. A Constructive Culture engages people.

What is Culture? Culture is the shared beliefs and values guiding the thinking and behavior of the organization. The impact of a constructive culture can be measured on the bottom line. Constructive cultures provide the customer better products and services than defensive cultures. Source Michael O’Brien: Human Synergistics International What is Its Impact?

Copyright © 1998 Human Synergistics International. All Rights Reserved. The Circumplex: Red: Aggressive/Defensive Styles Green: Passive/Defensive Styles Blue: Constructive Styles

Defensive Cultures Constructive Cultures 166% 74% 1% Revenue Stock Prices Net Income 682% 901% 756% 11 Year Change in Circumplex/OCI Copyright 1998 Human Synergistics International. All Rights Reserved. Financial information from Kotter & Heskett "Corporate Culture and Performance," Free Press 1992 Culture and Performance Kotter & Heskett: Study of 207 firms over an eleven year period as reported in their book Corporate Culture and Performance

Defensive CulturesConstructive Cultures Circumplex/OCI Copyright 1998 Human Synergistics International. All Rights Reserved. Financial information from Kotter & Heskett "Corporate Culture and Performance," Free Press 1992 Encourages Employees to be: Inactive and Reactive Resists change Assigns blame when something goes wrong Uses Chain of Command to control and direct Encourages Employees to be: Proactive Communicate open and freely Takes responsibility and accountability Is innovative and take risks

Our Goal: Transform Decatur into a constructive culture where: people enjoy coming to work people retire as healthy as they started customers receive superior products on time we deliver excellent value

Individuals Leaders Culture People create our products. People make the difference. We are proud to be healthy, high performing members of Team Caterpillar that design, develop and deliver superior products which create excellent value for our employees, customers, suppliers, stockholders and community.

Organizational Culture Cultural Consensus Building Values in Action - Behaviors Future Mar 2003 Personal Effectiveness Imagine 21 – Employees/Spouses Pathways to Excellence Imagine 21 – Community Leaders Leadership Effectiveness Leadership Impact Leadership Facilitator Education Purpose in Life Organizational Effectiveness One healthy, high-performing team

IMPROVEMENT Upper Management +213

Current Culture IMPROVEMENT +148

Organizational Culture Cultural Consensus Building Values in Action - Behaviors Goal Mar 2003 Personal Effectiveness Imagine 21 – Employees/Spouses Pathways to Excellence Imagine 21 – Community Leaders Leadership Effectiveness Leadership Impact Leadership Facilitator Education Purpose in Life May 2005 One healthy, high performing team

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