Historical Performance Analysis Analysts:. 3-Year Compound Average Growth Rates

Historical Performance Analysis

Analysts:

3-Year Compound Average Growth Rates

Total Revenue 8.0% Free Cash Flow 17.9%EBIT 26.2% Total Invested Capital 13.3%

NOPAT 28.2% Total Assets 11.1%Earnings Per Share 35.2% Economic Value-Added 81.2%

Dividends Per Share 30.2% Market Value-Added 98.5%

ANNUALIZED 3-YEAR CAGR

Margins and Yields

2007 2008 2009 2010 2011

7.1% 7.4% 5.2% 9.5% 11.8%5.8% 6.6% 10.2% 7.3% 11.2%7.7% 12.8% 3.3% 5.0% 8.3%0.9% 2.0% 1.1% 0.8% 1.1%

Margins and Yields

Operating MarginFree Cash Flow MarginEarnings YieldDividend Yield

Per Share Metrics

2007 2008 2009 2010 2011

3.72 3.87 2.17 5.29 9.580.43 0.60 0.70 0.88 1.333.16 3.76 1.98 4.51 8.011.91 2.21 (0.32) 1.97 3.65

Per Share Metrics

Earnings

NOPATFree Cash Flow

Dividends

Cumulative Stock Returns Trailing 24 Months

-40%

-30%

-20%

-10%

0%

10%

20%

30%CMI CAT DE

Cumulative Stock Returns vs. the Market

-30%

-20%

-10%

0%

10%

20%

30%CMI ^SPX

Total Revenue and Net Income

$0$2,000$4,000$6,000$8,000

$10,000$12,000$14,000$16,000$18,000$20,000

2006 2007 2008 2009 2010 2011

Total Revenue Net Income

Revenue Per Share

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90

$100

2007 2008 2009 2010 2011

Revenue Per Share CMI CAT

Operating Profit

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2006 2007 2008 2009 2010 2011

EBITDA EBIT

EBITDA Per Share

$0.00 $2.00 $4.00 $6.00 $8.00

$10.00 $12.00 $14.00 $16.00

2007 2008 2009 2010 2011

EBITDA Per Share CMI CAT

Earnings and Dividends Per Share

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

2006 2007 2008 2009 2010 2011

Earnings Per Share Dividends Per Share

Earnings Per Share

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

2007 2008 2009 2010 2011

Earnings Per Share CMI CAT

Dividends Per Share

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00

2007 2008 2009 2010 2011

Dividends Per Share CMI CAT

Gross and Operating Margin

0%

5%

10%

15%

20%

25%

30%

2006 2007 2008 2009 2010 2011

Gross Profit Margin Operating Profit Margin

Gross Profit Margin

0%

5%

10%

15%

20%

25%

30%

2007 2008 2009 2010 2011

Gross Profit Margin CMI CAT

Operating Profit Margin

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%

2007 2008 2009 2010 2011

Operating Profit Margin CMI CAT

Net and Free Cash Flow Margin

0%

2%

4%

6%

8%

10%

12%

2006 2007 2008 2009 2010 2011

Net Profit Margin Free Cash Flow Margin

Net Profit Margin

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2007 2008 2009 2010 2011

Net Profit Margin CMI CAT

Price/Earnings and Price/Free Cash Flow

05

101520253035

2006 2007 2008 2009 2010 2011

Price/Earnings Price/Free Cash Flow

Price/Earnings

0.05.0

10.015.020.025.030.035.040.045.050.0

2007 2008 2009 2010 2011

Price to Earnings CMI CAT

Earnings and Dividend Yield

0%2%4%6%8%

10%12%14%

2006 2007 2008 2009 2010 2011

Earnings Yield Dividend Yield

Dividend Yield

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2007 2008 2009 2010 2011

Dividend Yield CMI CAT

Current and Quick Ratio

0.00.20.40.60.81.01.21.41.6

1.61.71.71.81.81.91.92.02.02.12.1

2006 2007 2008 2009 2010 2011

Current Ratio Quick Ratio

Days Sales Outstanding and Inventory Turnover

0123456789

01020304050607080

2006 2007 2008 2009 2010 2011

Days Sales Outstanding Inventory Turnover

Total Debt to Assets, Long-Term Debt to Equity

0%

5%

10%

15%

20%

25%

2006 2007 2008 2009 2010 2011

Total Debt to Assets Long-Term Debt to Equity

Total Debt to Assets

0%

2%

4%

6%

8%

10%

12%

2007 2008 2009 2010 2011

Total Debt to Assets CMI CAT

Return on Assets, Equity and Capital

0%5%

10%15%20%25%30%35%

2006 2007 2008 2009 2010 2011

ROA ROE ROIC

Return on Assets

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%18.0%

2007 2008 2009 2010 2011

Return on Assets CMI CAT

Return on Equity

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2007 2008 2009 2010 2011

Return on Equity CMI CAT

Net Profit Margin

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2007 2008 2009 2010 2011

Net Profit Margin CMI CAT

Total Asset Turnover

0.00.20.40.60.81.01.21.41.61.8

2007 2008 2009 2010 2011

Total Asset Turnover CMI CAT

NOPAT and Free Cash Flow

-$200$0

$200$400$600$800

$1,000$1,200$1,400$1,600$1,800

2007 2008 2009 2010 2011

Net Oper. Profit After Tax Free Cash Flow

Net Fixed Assets and Total Invested Capital

$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000

2006 2007 2008 2009 2010 2011

Net Fixed Assets Total Invested Capital

Total Capital Per Share

$0 $5

$10 $15 $20 $25 $30 $35 $40

2007 2008 2009 2010 2011

Total Capital Per Share CMI CAT

Return on Invested Capital

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2007 2008 2009 2010 2011

Return on Invested Capital CMI CAT

Free Cash Flow Per Share

($4.00)($3.00)($2.00)($1.00)$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00

2007 2008 2009 2010 2011

Free Cash Flow Per Share CMI CAT

EVA and MVA

02,0004,0006,0008,00010,00012,00014,00016,00018,000

-400

-200

0

200

400

600

800

2006 2007 2008 2009 2010 2011

Economic Value-Added Market Valued-Added

Economic Value-Added Per Share

($3.00)($2.00)($1.00)$0.00 $1.00 $2.00 $3.00 $4.00

2007 2008 2009 2010 2011

Economic Value-Added Per Share CMI CAT

Market Value-Added Per Share

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90

$100

2007 2008 2009 2010 2011

Market Value-Added Per Share CMI CAT

Weighted Average Cost of Capital

Cost of Capital 2011 Weight % Cost Wgt CostEquity Capita l i zation 22,303 97.0% 16.2% 15.7%

Total Debt 686 3.0% 4.5% 0.1%Preferred Stock 0 0.0% 0.0% 0.0%Value of Al l Securities 22,989 100.0%Effective Tax Rate 27.1% Long-Term Growth Rate:Risk-Free Rate 2.27% 0.0%Beta 1.99 Alternative Beta:Market Risk Premium 7.0%CAPM Cost of Equi ty 16.2%

Weighted Average Cost of Capital: 15.8%

Value Creation

Value Creation 2006 2007 2008 2009 2010 2011Economic Value-Added 152 49 107 -307 109 635

Market Valued-Added 3,398 9,599 2,149 5,481 17,091 16,811PV of Future FCFs 3,300 3,443 3,558 4,184 4,458 4,458Value of Non-Oper. Assets 935 697 503 1,120 1,362 1,761Tota l Intrins ic Fi rm Value 4,235 4,140 4,061 5,304 5,820 6,219Intrins ic Va lue of Equity 3,551 3,572 3,423 4,660 5,081 5,533Per Share Intrinsic Value $17.48 $17.87 $17.42 $23.57 $25.77 $28.58Year-End Stock Price $36.84 $48.20 $30.16 $66.06 $105.89 $116.05Over (Under) Va luation/Sh $19.35 $30.33 $12.74 $42.49 $80.12 $87.47% Over (Under) Va lued 52.5% 62.9% 42.3% 64.3% 75.7% 75.4%

Stock Price vs. Intrinsic Value

$0$20$40$60$80

$100$120$140

2006 2007 2008 2009 2010 2011

Year-End Stock Price Per Share Intrinsic Value

Over (Under) Valuation

0%10%20%30%40%50%60%70%80%

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90

$100

2006 2007 2008 2009 2010 2011

Over (Under) Valuation/Sh % Over (Under) Valued

Historical Performance Diffusion Index

Revenues, Profits and Dividends 20.0% Liquidity and Debt 10.0%Tota l Revenue Current RatioEBITDA Quick RatioEPS Days Sa les OutstandingDPS Inventory Turnover

Gross, Operating and Net Margins 15.0% Tota l Debt/AssetsGross Profi t Margin Long-Term Debt/EquityOperating Profi t Margin NOPAT, Total Invested Capital, FCF 15.0%Net Profi t Margin NOPATFree Cash Flow Margin Tota l Invested Capita l

Relative Valuation 15.0% Free Cash FlowPrice/Earnings Value Creation 15.0%Price/Free Cash Flow Economic Va lue-AddedEarnings Yield Market Va lue-AddedDividend Yield Intrins ic Va lue

Profitability 10.0%ROA Score (max = 100%) 0.0%ROEROIC

Historical Performance Diffusion Index