World's largest manufacturer of construction and mining equipment and a leading provider of engines and power generation systems Diversity of products, end markets, and geography, supported by the industry's strongest dealer network A competitive cost structure supporting good operating margin, though with variability over the cycle Highly cyclical and competitive industry, with deep inventory correction cycles, and high working and fixed capital needs Currently weak demand and uncertain near-term outlook for high margin mining equipment that is pressuring revenues and profit margins Conservative financial policies, notwithstanding a tolerance for large debt-funded acquisitions Credit measures that we expect will continue to exhibit high volatility in correlation with the demand cycle Strong liquidity from ample cash reserves and a variety of funding
