POWER SYSTEMS RESEARCH

1
POWER SYSTEMS RESEARCH Integrating Islands of
Information Mackinaw Islands October 10,
2002 J.F.Shaner Caterpillar, Inc
2
POWER SYSTEMS MARKETING DIVISIONS STRATEGIC
SERVICES
FUNCTIONS Economic, Energy Market Outlooks
Product Line Forecasts Demand
Management Financial Reporting MBU/Product
Group Support
3
Organization
Rich Thompson Group President
Perkins Engines Company Limited Mike
Baunton Vice President
Engine Products Division Doug Oberhelman Vice
President
Performance Engine Products Division Dan
Murphy Vice President
Technical Services Division Sherril West Vice
President
Large Engine Products Fuel System Division Don
Western Vice President
Solar Turbines Inc. Gary Stroup Vice President
4
Vision

• Worldwide leader in power systems
• Technology innovation, differentiated engine
  products and deep integration of Cat vehicles
• Lead competition in profitability and return on
  investment

5
Global Distribution
Representation in over 200 countries Over 6,000
dealers, branches distributors Global Service
24 x 7
6
Leadership Position

• 1 in distributed generation
• 1 in electric power rental
• 1 in industrial turbines to 30,000hp
• 1 in small industrial engines
• 1 in oil gas market
• 1 in combined heavy duty and mid range
  truck North America PINS since 1998
• 1 in pleasure craft business

7
Engine Strategies

• Growth
• Leadership position
• Balance
• Market
• Geographic
• Expand product line
• Technology leadership
• Reduce costs
• Increase scope of supply
• Optimize brands

8
Growth Strategy
Engines 47 of Sales by 2006
Engines 26 of Sales In 1990
14 B
8 B
4 B
3B
9
Market Balance
2006
2000
Oil Gas 17
Truck 19
Truck 27
Marine 9
Oil Gas 19
Industrial 12
Industrial 13
Marine 8
Electric Power 43
Electric Power 33
10
Geographic Balance
2006
2000
Asia Pacific
Asia Pacific
Latin America
Latin America
North America
North America
EAME
EAME
11
Expand Product Line
Bigger
Size
Smaller
1,000,000s
100s
1,000s
100,000s
Quantity
12
Engine Product Line
HFO
HFO
DIESEL
GAS
GAS
15K
10K
5K
2K
1K
500
200
50
100
5
20K
Horsepower
13
Best Brands
14
Brand Positioning
15
Market Segment Strategies
Cat Vehicles
Electric Power
Truck
Industrial
Rail
Marine
Petroleum
16
Increase Scope of Supply
UPS
Systems Growth
Switchgear
ATS
Small
Large
Packaging and Mechanical Components
17
Electric Power Solutions

• Quality Power (Cat UPS)
• Continuous power
• Eliminates voltage fluctuations
• Virtual Power Plants
• Aggregating Distribution Generation units
• Combined Heat and Power
• Increases efficiencies from 35 to 85
• Services (Power by the hour, Rental, Lease,
  Service Contracts)

18
Brazil Site View
19
Caterpillar Oil Gas
20
Industry Outlook
Simmons Co International
21
Cat Marine Power
Leader in ocean-going marine and pleasure craft
market
22
Kiel - Marine Leader
World Class in Everything We Do
23
Caterpillar Truck Engines
24
Industry PINS

• 1 in Heavy Duty PINS
• 1 in combined Heavy Duty and Medium Duty
  PINS
• Customer Survey 92 will buy Cat truck engines
  again

25
Technology
26
ACERT
27
Value of ACERT

• Extension of Proven Technology

• Simple

• Quiet

• Durable

• Positioned for 2007

• Ready for Tier III Off-Road

28
Technology Leadership

• Drivers
• Performance
• Fuel Economy
• Reliability
• Durability
• Emissions
• Life Cycle Costs

29
Industrial Power Sectors
Construction
Agriculture
Rail
Mining
Material Handling
Building Services
Forestry
30
Packaging/Systems
Lafayette, IN
Northern Ireland
Griffin, GA
China
Mexico
Brazil
India
South Africa
31
High Volume - Low Customization
Highly Complex
Degree of Customization
3500/3412/C9/C18 Gensets Lister/PEP/Navistar Olymp
ian Gensets
Std Product
Unit Volume
200
1,500
32
Medium Volume - Medium Customization
Highly Complex
Power Modules Walk-In Enclosures Well Servicing
Units Switchgear Control
Degree of Customization
Std Product
Unit Volume
200
1,500
33
Low Volume - High Customization
Highly Complex
Combined Heat/Power Packages Pump
Packages Power Modules Walk-In Enclosures Switchge
ar Controls
Degree of Customization
Std Product
Unit Volume
200
1,500
34
Perkins Brand Engines
35
Typical Applications
36
(No Transcript)
37
Turbine Families
SATURN 1 MW
CENTAUR 2 - 4 MW
MERCURY 4 MW
TAURUS 5-8 MW
MARS 9 - 11 MW
TITAN 14 MW
38
Gas Compressor Package
Turbine
Controls
Compressor
Ancillary Equipment
39
Power Generation Products
Ancillary Equipment
Exhaust Heat Recovery
40
Construction Services Products
Turbomachinery Package
Control Room
41
WW Marine PINS Estimates
Cat
MaK
Perkins Sabre
Horsepower
42
Power Generation PINS - 2000
1 to 20 MW
Top Competitors
Solar
43
Oil and Gas PINS - 2000
1,000 to 30,000 HP
Solar
Competition
44
Cat 3500 Leadership

• Caterpillar Delivers What Customers Want
• Reliability Durability
• Low Owning Operating Costs
• Customer Support
• Performance
• Efficiency
• Emissions

2000 PINS 1 to 2.25 MW

• Result - Customers choose Caterpillar more
  than twice as often as the next largest
  competitor

45
(No Transcript)
46
(No Transcript)