CATERPILLAR FINANCIAL SERVICES

Transcription

1 CATERPILLAR FINANCIAL SERVICES Team CAN-I Stacey Kemner, Russ Poush, Anthony Spencer September 12, 2006

2 Background CAT Financial offers financial services to Dealers, Users, and CATBUs and is a wholly owned subsidiary of Caterpillar Incorporated. Caterpillar Incorporated markets include: general, heavy and compact equipment construction, engines, power generation, lift trucks, asphalt paving, marine, and forestry. Mission & Vision Statements Malcolm Baldrige National Quality Award Profits 6 Sigma Results Critical Success Factors (CSFs) Customer Service

3 Mission & Vision Statement Figure P-4 Business Excellence Vision Mission Critical Success Factors 6 Sigma Vision We will be a significant Mission reason customers select Caterpillar worldwide. Helping Caterpillar Critical and Success our customers Factors succeed We will through leverage financial our intellectual service capital Customer deliver customer-driven Satisfaction excellence. solutions and enhance Shared shareholder Values Growth value. We are a people of integrity who We will respect Reliable Returns grow on and our care strong for foundation others in as a caring our Employee and workplace learning Satisfaction and organization. our world. We Leadership are driven by the freedom and responsibility to exceed expectations World-Class of Core those Processes we work with and serve. Shared Values Caterpillar Financial Service Corporation, Summary, 2

4 Malcolm Baldrige National Quality Award Began using the Baldrige program as part of the Tennessee Quality Award process Won Tennessee Quality Excellence Award with Global Excellence Commendation Won Malcolm Baldrige National Quality Award

5 6 Sigma Results CFSC was able to fully recoup all 6 Sigma start-up costs in 2001, the first year of deployment, and is yielding significant benefits, with 2002 after-tax savings exceeding $9 million. Good $ '00 '01 '02 '03 YTD '04 EST Figure 7.3-7, Caterpillar Financial Services Corporation Summary, 46

6 Profits CFSC % Total Caterpillar Earnings Figure Reliable Returns to Caterpillar, Inc. Good Since 1998, CFSC has increased assets 34% and profit 54% (industry performance has declined 21% & 35%, respectively) CFSC s contribution to Caterpillar s total earnings increased from 5.6% (1998) to over 17% (2002) Caterpillar Financial Service Corporation, Summary, 44-45

7 CSF Indicators Reliable Returns - Portfolio Health Product/Services Expansions Top 20 Users (na) Past Due Results Inactive Accounts Restructures (na) Repossessions Potential Losses >500k (na) Defaults Allowance for Credit Losses Good Portfolio Factors % Past Dues % Inactives Repo Units % Allowance YTD Industry Benchmark Caterpillar Financial Services Corporation Summary,53

8 CSF Indicators % Employee Retention YTD CSFC CFSC with Regional Offices % Non Voluntary/Voluntary Industry/Top Quartile Investment in Employee Recognition Employee Satisfaction/Health Retention Compensation Competitiveness Succession Planning Diversity Development $ YTD Eye On quality Cat Bucks 6 Sigma Rewards Caterpillar Financial Services Corporation Summary, 48

9 CSF Indicators Leadership Health Strategic Retreat ALC Shared Values Community Support Community Support % Favorable Good National Norm Baldrige Winner Caterpillar Financial Services Corporation Summary, 55

10 Customer Service CAT Financial meets or exceeds customer s expectations Flexible financial lending requirements allow all but a small percentage of loans to be approved User/Dealer Focus Groups & Surveys re: staff performance, overall satisfaction, future intentions, loyalty, competitive competition , Internet, Intranet, Extranet - Allow for quick response to customer needs Caterpillar Financial Services Corporation Summary,53

11 CATERPILLAR FINANCIAL SERVICES QUESTIONS??

12 CATERPILLAR FINANCIAL SERVICES THANKS FOR LISTENING!!!

13 CATERPILLAR FINANCIAL SERVICES