2012 YEAR IN REVIEW ROCK SOLID Potential | Position | Plan | People | Performance In a global marketplace filled with shifting dynamics, our customers count on Caterpillar as a dependable source of products, services and solutions to meet their needs. This strategy is the stabilizing force behind our business. Today, we’re as confident of our rock solid strength as at any time in our history. ROCK SOLID 2012 Year in Review Forward-Looking Statements Certain statements in this 2012 Year in Review relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and we do not undertake to update our forward-looking statements. Caterpillar’s actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global economic conditions and economic conditions in the industries and markets we serve; (ii) government monetary or fiscal policies and infrastructure spending; (iii) commodity or component price increases, fluctuations in demand for our products, or limited availability of raw materials and component products, including steel; (iv) our and our customers’, dealers’ and suppliers’ ability to access and manage liquidity; (v) political and economic risks and instability, including national or international conflicts and civil unrest; (vi) our and Cat Financial’s ability to: maintain credit ratings, avoid material increases in borrowing costs, and access capital markets; (vii) the financial condition and credit worthiness of Cat Financial’s customers; (viii) changes in interest rates or market liquidity; (ix) changes in financial services regulation; (x) inability to realize expected benefits from acquisitions, including ERA Mining Machinery Limited, and divestitures, including the divestiture of the Bucyrus International, Inc. distribution business to our independent dealers; (xi) international trade and investment policies; (xii) market acceptance of our products and services; (xiii) changes in the competitive environment, including market share, pricing and geographic and product mix of sales; (xiv) successful implementation of capacity expansion projects, cost reduction initiatives and efficiency or productivity initiatives, including the Caterpillar Production System; (xv) inventory management decisions and sourcing practices of our dealers or original equipment manufacturers; (xvi) compliance with environmental laws and regulations; (xvii) alleged or actual violations of trade or anti-corruption laws and regulations; (xviii) additional tax expense or exposure; (xix) currency fluctuations; (xx) our or Cat Financial’s compliance with financial covenants; (xxi) increased pension plan funding obligations; (xxii) union disputes or other labor matters; (xxiii) significant legal proceedings, claims, lawsuits or investigations; (xxiv) compliance requirements imposed if carbon emissions legislation and/or regulations are adopted; (xxv) changes in accounting standards; (xxvi) failure or breach of information technology security; (xxvii) adverse effects of natural disasters; and (xxviii) other factors described in more detail under “Item 1A. Risk Factors” in our Form 10-K filed with the SEC on February 19, 2013 for the year ended December 31, 2012. This filing is available on our website atwww.caterpillar.com/secfilings. Trademark Information CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the POWER EDGE trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. Cat and Caterpillar are registered trademarks of Caterpillar Inc., 100 N.E. Adams, Peoria IL 61629. © 2013 CATERPILLAR PUBLIC RELEASE All Rights Reserved. Printed in the U.S.A. ROCK SOLID 2012 Year in Review 2 Forward-LOOKING Statements & TRADEMARK Information 4 CHAIRMAN’S MESSAGE 6 ROCK SOLID POTENTIAL It’s hard to think of another company that touches as many industries with as attractive long-term demand fundamentals as Caterpillar. 11 ROCK SOLID POSITION Today, our global reach is unmatched in the industry. The breadth and depth of our product portfolio, combined with our global dealer network sets us apart from competitors. An unprecedented level of additional capacity and product development is ensuring that we not only maintain, but also fortify and expand this unique position. 16 ROCK SOLID PLAN Caterpillar’s strength depends on providing our customers with the best products, the best service and the best value proposition in the marketplace. 21 ROCK SOLID PEOPLE Caterpillar’s extended value chain is comprised of employees, dealers and suppliers around the world who are focused on the same customer-driven goals. The talent and commitment of this team is critical to our success. That’s why we’re investing in our people and working together more cohesively than ever before. 27 ROCK SOLID PERFORMANCE Our renewed focus on customers is delivering results. When Caterpillar products and services deliver world-class performance for our customers, we are positioned to deliver world-class financial performance for our stockholders. We accomplished this in 2012 by translating record sales and revenues into solid profitability. 33 BUSINESS SEGMENTS 39 PERFORMANCE SUMMARY 47 ABOUT caterpillar 50 EXECUTIVE OFFICERS 51 OFFICERS 52 BOARD OF DIRECTORS 54 THE Caterpillar Foundation ROCK SOLID 2012 Year in Review Chairman’s When faced with challenges, it’s how we respond that defines us. 2012 was full of challenges for the Caterpillar team, but our response Message to everything that was thrown at us was rock solid. Doug Oberhelman, Chairman and CEO Nowadays it seems there aren’t many things that are rock solid. The global marketplace is constantly FURTHER POSITIONING OURSELVES shifting and economies around the world face uncertainty on a variety of fronts — fiscally, politically FOR SUCCESS: GLOBAL GOVERNMENT and socially. The world struggles to address concerns like energy, infrastructure, workforce & CORPORATE AFFAIRS readiness and how to compete in the global economy. And our customers also face challenges like never before. We believe that Caterpillar and our dealers deliver the best products and It’s hard to grasp anything solid, steady and reliable anymore. But that’s exactly what we try to be services in the world. However, the for our customers, stockholders, employees, dealers and suppliers. We live by our core values of actions that governments take around Integrity, Excellence, Teamwork and Commitment. And as we do business in every corner of the the world can have significant impact on globe, our values guide us to be fair and consistent. You know what to expect when you deal our business, our employees, customers with Caterpillar. and stockholders. The world is a big place, and we have big issues to face. Our products have always been made to be tough, durable and reliable. And we keep a constant But at Caterpillar, we don’t just watch focus on quality. In 2012 product quality was at a historically high level. Great news! But it’s even the world go by — we get involved. better when you note that we also had historically high volumes and were introducing Tier 4 Interim products to the market. We have a strong voice on the key issues — trade, energy, infrastructure The team has really delivered. I’m happy with quality, but even more importantly, our customers and tax — that ensure growth and global are happy. We are receiving very positive input from the field — rock solid! competitiveness in the world’s economy. In 2012, we led the way in support of a But our job doesn’t end there. Today our customers count on us for much more. new U.S. highway bill — sending over 40,000 letters from employees, dealers, That’s why we innovate. In 2012 we spent $2.5 billion on research and development. Our engineers suppliers and customers for legislation and technologists are working on products and services for our customers both today and well that will provide investment in robust, into the future. modern infrastructure that can handle the rising exports to our customers That’s why we lead. Caterpillar has been an outspoken voice on the issues that affect our customers. around the world. (continued) It’s up to us to educate our employees, communities and government officials on our position regarding topics like trade, tax, infrastructure and energy. (continued) Chairman’s Message 4 ROCK SOLID 2012 Year in Review Chairman’s Message (continued) Sales & Revenues Operating Profit Research & Development 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 $2,466 $65,875 $8,573 $2,297 $60,138 $7,153 $51,324 $1,905 $1,728 $42,588 $1,421 $4,448 $32,396 $3,963 $577 $ in millions $ in millions $ in millions And that’s why we maintain internal strength. At Caterpillar, we talk about controlling what we can (continued) within our four walls. The world around us is going to keep changing, and we have to be ready We were also a leading voice in urging for anything. We do that with rock solid operations. We focus on maintaining a strong balance Congress to establish Permanent Normal sheet, having efficient processes in our factories and offices and developing the best team. Trade Relations (PNTR) with Russia — That’s how we stay strong. another step toward job creation and investment that will open markets and Rock solid doesn’t imply perfection. We make mistakes — everyone does. But we learn from them, increase economic growth. and the lessons we learn make us stronger. While these are important victories, And you’ll see that strength throughout our Year in Review. Our customers, our employees and we still have a lot of work to do.