Caterpillar Inc Fireside Chat Hosted by JPMorgan Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tami Zakaria - JPMorgan - Analyst : Perfect. So, John, Denise, let's start with margins. So Caterpillar has been a very impressive (technical difficulty) and we are pragmatic time for a lot of them operating profit after charges, (technical difficulty)

Question: Tami Zakaria - JPMorgan - Analyst : Perfect. So let's talk about growth opportunities. Investors are very excited, Caterpillar's growth opportunities ahead. So Dennis, probably I'll start with you. For mining, of course, how is Caterpillar's Resource Industry segment is positioning itself to capitalize on the rising demand of some of the critical minerals like aluminum or copper, cobalt, lithium driven by RI and the increasing demand for power generation?

Question: Tami Zakaria - JPMorgan - Analyst : Appropriate. So we will go to autonomy in a bit. innovate. But, Joe, beyond (inaudible) segment what are growth opportunity to (technical difficulty)

Question: Tami Zakaria - JPMorgan - Analyst : That's very clear. So I wanted to take deeper on a top of my topic, which is data center, (inaudible). Does growth in data center (technical difficulty) opportunities with the IRF segment (inaudible)and demand for copper expand your total (inaudible) market?

Question: Tami Zakaria - JPMorgan - Analyst : Perfect. So let's talk about technology and innovation. I think technology seems to be an under appreciated assets for Cat or advantage for Cat. Denise, we have seen Cat as a leading innovator in autonomous and electric solutions from mining and quarry customers. Talk to us about Cats latest and greatest innovations in that space. What's the payback period? What's the customer uptake? Any insights you can share? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 24, 2024 / 4:30PM, JPM.N - Caterpillar Inc Fireside Chat Hosted by JPMorgan

Question: Tami Zakaria - JPMorgan - Analyst : I think investors are excited, too. So going back to you, Joe, given your recent experience as Group President of the Energy & Transportation segment, can you explain how the E&T segment differentiates Caterpillar and promotes an integrated approach to the mine site of the future?

Question: Tami Zakaria - JPMorgan - Analyst : I think that's a perfect transition to my next question, which is on competition. If I'm a customer, why should I choose Caterpillar? What differentiates you from the others?

Question: Tami Zakaria - JPMorgan - Analyst : So autonomy, let's talk about that. Denise, what drives customers to adopt autonomy in general and how about specifically with Cat solutions. What are the drivers of adoption? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 24, 2024 / 4:30PM, JPM.N - Caterpillar Inc Fireside Chat Hosted by JPMorgan

Question: Tami Zakaria - JPMorgan - Analyst : Joe, would you want to add something about some of the semi-autonomous solutions outside of RA segment?

Question: Tami Zakaria - JPMorgan - Analyst : Perfect. So let's talk about connected assets. We've heard management talk about $1.5 million of connected assets and access to massive amounts of data. So, Denise the question to you, the data that you have right now, does it give you any insights on the optimal age or equalization of mining trucks and equipment versus where the fleet is today and is a great replacement on the come based on the data? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 24, 2024 / 4:30PM, JPM.N - Caterpillar Inc Fireside Chat Hosted by JPMorgan

Question: Tami Zakaria - JPMorgan - Analyst : Got it. Just to build on that, what would customers need to see to begin meaningful product replacement from here on?

Question: Tami Zakaria - JPMorgan - Analyst : Got it. That's super helpful. So let's talk about services. How does a customer's capital discipline benefit the services business of Caterpillar?

Question: Tami Zakaria - JPMorgan - Analyst : Perfect. So another key topic amongst investors is Caterpillar's free cash flow generation, which has seen a remarkable improvement over the last 10 years. And so I think it was about a $10 billion last June? And so remind us how you have accomplished this growth and how to think about that from here on?

Question: Tami Zakaria - JPMorgan - Analyst : Great. So I wanted to ask you about capacity. So this is a question for you, Joe. Are you well positioned to support the growth ambitions across all the segments of Caterpillar over the coming decade? Or do you need to invest in additional capacity?

Question: Tami Zakaria - JPMorgan - Analyst : Perfect. So another trending topic or within the investment community is the topic of pricing. And so Joe, just a question for you. We hear cat talk about pricing every quarter and how does mix and a product feature improvement play into the pricing decision of products? And can this be a driver of price growth in the coming years?

Question: Tami Zakaria - JPMorgan - Analyst : Perfect. So I wanted to pivot to infrastructure spending and Can either of you talk about the pace of spending you're seeing from mega projects driven by stimulus as part of the IAG, IRA chipset?

Question: Tami Zakaria - JPMorgan - Analyst : Any thoughts and M&A, any areas where Caterpillar could do acquisitions to round out the portfolio either in RI or overall within the Cat portfolio?

Question: Tami Zakaria - JPMorgan - Analyst : Amazing. So we are near the end of our discussion. So one question for you, Denise. As RI segment presidents, it's been quite a journey for you. And can you talk about how the segment has really transformed over the past decade and how you are prepared to support your customers today and going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 24, 2024 / 4:30PM, JPM.N - Caterpillar Inc Fireside Chat Hosted by JPMorgan

Question: Tami Zakaria - JPMorgan - Analyst : Great. Joe, anything you would leave us with?