MAY 6, 2020

CAT® CUSTOMER VALUE

AGREEMENTS (CVAs)

CONSTRUCTION INDUSTRIES STRATEGY

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 North America POS CVA Framework
Hassle Free Ownership & Maintenance | Security of Expert Dealer Support | Peace of Mind from Equipment Health Management
Level 1:
Convenience
✓ Maintenance Parts Kits
(Delivery Preferred)
✓ EPP – Powertrain,
Hydraulics, & Technology
Coverage
✓ Asset Tracking – Touchpoint at
Every PM Interval
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Level 2: Level 3:
Performance Confidence
✓ Maintenance Parts Delivered ✓ Maintenance & Repair Parts
& Installed Delivered & Installed
✓ EPP – Powertrain, ✓ EPP – Premier
Hydraulics, & Technology (Total Machine Coverage)
Coverage
✓ Condition Monitoring – Real ✓ Condition Monitoring – Real
Time Touchpoints Time Touchpoints
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 North America POS CVA Framework

INDUSTRY INITIATIVES CAT CERTIFIED USED (CCU) CFAS

Activate CFAS Dealer

36-MONTH Expand from 6-month Agreements and Offers
Industry Offers
contracts to 12- AND 24

24-MONTH durations
BCP GCI
24.9%

146
Reflect 60-day lag in reporting.

CFAS Cat CVAs

at minimum of 3 years,
up to 5 years

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 North America POS & Aftermarket CVA Framework – Next

~50% of customers believe Similar programs are Future CVA Development

CCM-qualified machines are being offered by dealers
worth more (>4%)* and are valued by • Undercarriage CVA
customers • GET / Bucket CVA
Most customers value • Paver Wear Parts CVA
maintenance history • Hydraulic Hammer CVA
over repairs* • Hydraulic Shear CVA
• Certified Rebuild CVA
• Powertrain Component CVA

*Based on data collected at auction.

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 North America POS & Aftermarket CVA Framework

Customer Issues CVA Advantages

• A CVA allows the customer to know their true maintenance cost

Cash Flow • Typical 5000 HR Parts Only CVA is 1% of Machine List or 2% with Labor

• Customer can focus on other needs knowing the dealer is tracking each asset
On-Time Maintenance • Customer can plan on less failures knowing the maintenance was performed

• Dealer is set up to track all customer assets and schedule PM’s within 50 hours
Asset Tracking • Customer can upgrade from Asset Tracking to Condition Monitoring

• Customer does not need to worry about Filter and Fluids inventory
Parts Stocking • All required parts will be available when the service is due

• The Cat Inspect App provides the customer a tool to avoid unplanned repairs
Unplanned Repairs • The Cat Inspect App gives the customer better visibility to their entire fleet

• Customer can follow the OMM to meet the lowest operating cost for general applications
PM Consist • Customer can adjust intervals and parts consist to match their application needs

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 North America POS & Aftermarket CVA Framework

CVA BENEFITS
Customer Salesperson Dealer Caterpillar
Lower Operating Cost Less Competition More Customer Customer Loyalty
Touchpoints
Less Unscheduled Differentiates the Less Unscheduled Proof of O&O Cost
Down Time Dealer Repairs
Reduction in Parts More Customer Predictable Revenue Predictable Parts
Inventory Touchpoints Logistics
Less Warranty Claims Less Warranty Claims Less Warranty Claims Less Warranty Claims

More More More More

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 QUESTIONS?

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