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Contents: Page I. II. III. IV. V. VI. Introduction Marketing Communications (Marcom) Sales Support Sales Tools Sales Training Resources 3 4 23 30 34 37 39

VII. Glossary of Marcom Terms

I. Introduction
This document provides a multi-channel marketing plan that will be employed in 2012 to support both enterprise-wide and business unit-specific strategies. All marketing channel efforts will be focused on the achievement of five initiatives, with each channel contributing to the success of individual initiatives in different capacities. The EPD Marketing Plan is a totally integrated activity that combines the diverse elements of Marcom, Sales Training, Sales Support and Sales Tools Development. The EPD Marketing Team will support the marcom efforts of the diesel team and provide consultative support for the gas, product support, CPGS, Solutions, and rental teams in 2012.

II. Marketing Communications (Marcom)

Marcom Planning Process
Since 2005, our marcom plans have consistently delivered a well-balanced integrated marketing mix, coupled with detailed tracking metrics, to support our activities. In 2012, the core digital components of this plan will continue to drive lead generation activity and will account for over 85% of our marcom investment. This plan will also retain a well-rounded marketing effort to maximize the momentum of longterm messaging and global awareness objectives set in place during 2011. As in the past, our planning process has included the active participation and buy-in of key stakeholders, including the EP commercial marketing team and MPC marketing representatives. In addition to our Electric Power teams, we will also continue to work closely with our key marketing partners to take full advantage of each of their specialized services. Through seamless integration of these services we will eliminate duplication, maximize resource expenditures, deliver a more consistent message and provide a superior overall customer experience. Our marketing partners include: Marketing Profit Centers (MPC) A key partner in our marketing process provides direction and support for our lead management activities with regional expertise and direct contact with dealers. Customer Services Support Division Multi-Channel Marketing Consultants (MMC) Provide marketing communications support from strategy development through execution, including tactical elements, budget management, messaging, metrics and planning. Customer Services Support (CSS) Owners of all Cat.com websites, corporate social media direction, customer-facing applications (e.g., Spec Sheet Wizard, etc.) and management of salesforce.com (lead management/CRM platform).

Gelia Provides strategic marcom consultation/planning, creative and message development, VOC research, media planning, public relations support, global lead management, metrics and measurement. Mind Share Provides search engine marketing support for keywords purchased on the Chinese search engine, Baidu. Lithium Provides strategic consultation, technical development and management support for the Power Generation Online Community.

2011 Marcom Highlights

The following pages provide a brief summary of 2011 marcom activities and accomplishments, many of which are recommended for continuation in the coming year. The activities are grouped based on their alignment with 2011 marcom objectives. 1. Generate Leads 2. Engage Customers 3. Deliver Information 4. Support MPCs and Dealers

1. Generate Leads 2011 Year-End Metrics An integrated mix of marcom activities delivered over 1.6 million marketing impressions, resulting in over 2 million visits to the Caterpillar Power Generation Resource Center microsite, generating 41,741 global sales leads and identifying over $2.5 billion in potential generator set sales. 2011 Cat and Olympian sales resulting from the marcom effort are projected at over $205 million.

Global Lead Management An expanded lead management process in 2011 included telephone qualification of leads in EPNA, EPLA and EAME and online self-qualification in EPAP. Over 40,000 leads passed through the system and those with a planned purchased intent were electronically distributed to dealers in 253 different countries. Additional process improvements included global standardization of call sheets and registration forms, enhanced tracking/reporting and expanded dealer feedback capabilities.

Power Generation Resource Center Microsite Major improvements to the Power Generation Resource Center included development of 4 additional language versions (Chinese, French, Portuguese, Spanish), condensed and globally standardized registration forms and direct RSS feeds of spec sheets to ensure consistency with cat.com and other online resources. A mobile version of the site was also launched in 2011 to more effectively communicate with visitors who choose to use mobile devices to access information.

2011 Leads by Source

Online Directories
Seach Engine Spec Sizer

E-Media Cat.com
PR Misc. Print Media

Global Search Engine Marketing (SEM) SEM activities combined global campaigns in English, French, Portuguese and Spanish with regionally targeted campaigns in Africa, China, Latin America and the Middle East. These campaigns utilized multiple search engines including Google, Baidu and Yahoo/Bing. The 2011 SEM effort resulted in over 1.2 million marketing impressions and over 2 million visits to the Power Generation Resource Center with nearly 18,000 sales leads captured. SEM marketing accounted for over 90% of overall link activity and 43% of total leads generated.

Online Directories Targeted placements within online directories including GlobalSpec, BuyersZone, ElectricNet, Power Online, Direct Industry and GlobalGeneratorSets.com delivered cost-effective lead generation, resulting in over 5,400 sales leads representing 13% of total lead activity. These large, digital directories offer visitors the ability to search a wide variety of industrial classifications including electric power. Positioning within appropriate categories on these highly trafficked sites delivered additional brand exposure and the required registration enhanced our lead generation efforts. Additionally, online directories aggressively purchase keywords on traditional search engines (Google, Yahoo!, etc.) to drive traffic to their sites. This search engine activity complemented our own paid search activity, effectively multiplying the potential for a prospect to receive the Cat EP message.

Media Advertising (Print and Online) An integrated media campaign combined print, online display ads and e-blasts to deliver the Cat EP quality message to electrical consultants and contractors around the globe. The scope of the campaign included 19 publications, 10 websites and 13 electronic list sources, delivered in 4 different languages. All ads included direct links, dedicated URL tracking codes or QR tags directing visitors to the Power Generation Resource Center.

SpecSizer/SpecSheet Wizard (Cat.com) Cross-marketing efforts with Cat.com allowed us to capitalize the lead generation potential resulting from requests for SpecSizer software and those using the SpecSheet Wizard functionality. Over 4,400 sales leads resulted from this effort.

2. Engage Customers Continued Development of the Power Generation Online Community Expansion of the community widened the forum to engage customers, encourage dialogue, deliver information and allow users to address each others electric power issues. The result was more people visiting the site and more people participating in the discussion. Caterpillar-originated 8

content included a steady stream of industry pertinent blog postings on a bi-weekly basis. This expanded forum, coupled with promotional efforts such as e-blasts, banner ads on industry websites, social media and Cat.com, helped to increase overall traffic to the community by 52%. Research conducted in August 2011 helped strengthen our understanding of our community users, including demographics, purchase behavior and loyalty measures. It also helped strengthen our understanding of the value provided by the community both to users and to Caterpillar. A high level summary of the research results are illustrated below: 74% said that the Power Generation Online Community met or exceeded their expectations 24% of users said that the Online Community helped them make a purchase decision 29% stated that it is absolutely critical that manufacturers offer online communities as a resource for their customers 63% purchase diesel generator sets 49% purchase over 1MW generator sets

A 6 Sigma project was also conducted in 2011 to determine the value of the Power Generation Online Community. While the project provided estimates on sales/marketing return, it was determined by the team that the true value lies in the use of the information garnered and a new project should be launched to develop a system for collecting, analyzing and disseminating information to the appropriate teams within the Electric Power Division. ROI figures included $629,367 in sales (unit price), $11,300 in public relations value and $12,000 as a result of the blogs. Cost avoidance estimates were also calculated: $15,000 (online enclosure focus group event), $22,800 (new content creation), $96,000 (e-mail/name generation for future marketing e-blasts) and $100,000 (organic search). The Online Community continues to contribute to Caterpillars industry leadership position. By engaging with customers, we are creating valuable relationships that will clearly lead to an impact on sales.

Social Media Metrics In 2011 we expanded our social media strategy, originally created in 2010 in partnership with the Corporate Executive Boards Marketing Leadership Council. By aligning social media tactics with primary business objectives, we leveraged our ongoing communications plans with social marketing elements. Specific tactics employed to support the strategy included:

Registered Users: 6,265* Community Page Views: 526,371 Blogs Posted: 20 Blog Page Views: 114,049
*Registered Users includes total community

Likes: 1,311 Post Views: 89,089

Videos Uploaded: 17 Page Views: 59,162

3. Deliver Information Continued Development of Content on Cat.com and Global Websites Cat.com and the related global websites continued as an important portal for information delivery. Upgrades and enhancements completed in 2011 included: Maintained rotating operator tips and customer testimonials Added over 50 items to RSS newsfeed Completed China.cat.com overhaul Developed 3516C-HD Tier 4/CARB diesel generator set resource page Created EMCP4 controller resource page Updated ATS page to expand product listing and marketing materials Overhauled rental page for improved navigation and content Added Facebook like gadget

Spec Sheet RSS Feeds for Dealer Websites Dealers can now feature the latest, most up-to-date electric power spec sheets on their own websites with no maintenance required on their part. This is made possible by new data feeds made available in 2011 by the global marcom team. With just a few hours of work, dealers can connect their sites directly to Cat.com and have confidence that their site is always synchronized with Caterpillar. A 6 Sigma project was completed to gather dealer feedback and refine the communications plan as this is rolled to dealers worldwide. At the conclusion of 2011, the feeds included Cat brand generator sets in 4 languages, with additional languages planned in 2012. Also available are feeds for Olympian brand gensets in 9 languages, plus English feeds for UPS, ATS, Switchgear and Rental Gensets. Each dealer can choose the feeds that are relevant to the products they sell in their territory and display them on their website. 10

4. Support MPCs and Dealers Dealer Marketing/Training Meetings Dealer marcom training updates were focused on individual dealers in each of the MPCs in 2011. Dealers in EPAP attended a training seminar focused on retail products, specifically the Olympian product line. Attendees received additional information on lead generation, online promotions and marcom tactics to incorporate at the dealer level to support overall global marcom initiatives. Members of the global marcom team also visited dealers in Brazil, the U.S. and China to deliver an update on current marcom initiatives and drive strategy development for continued sales growth in 2012.

Dealer Website Reviews In 2011, several dealer website reviews were conducted. The marcom team provided consultation on the elements below. If applicable, a social media overview and audit were also performed. Websites reviewed in 2011 included Alban, Peterson, Western States and CGT. In addition, marcom and web best practices were presented to several North American dealers (Hawthorne, Quinn, NMC, Foley and Wyoming) in conjunction with the DSD. Web Consultation: Customer value messaging Content development Navigation/layout best practices Image recommendations Search engine optimization Metrics/analytics 11

CRM strategy Social integration

Regional Marcom Activities Electric Power funding and resource support assisted the MPCs in completing several regional marcom initiatives. Some of the activities of note included:

EAME SEM programs in Franco Africa, Nigeria, Pakistan, Saudi Arabia and the United Arab Emirates. EAME targeted e-blast campaigns for high opportunity industries including telecom, healthcare and construction. EPLA SEM programs in Argentina, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela. EPLA disaster preparedness campaign including e-media, social media, e-blast and landing page components resulted in the sale of 120 retail units each with a parts offering and ESC. Total dealer revenue was in excess of $2 million. EPAP Search Engine Optimization (SEO) sites were launched for numerous countries to provide in-language content for customers searching on local search engines. All sites are fully tied into a lead management process and drive leads back to EPAP dealers for follow-up. EPNA key customer list acquisition, research and targeted media placements to support regional healthcare marketing effort. EPNA sponsored webcast on Tier 4 Generator Ratings and Applications in October 2011. Presented by Ray Marfell, the webcast drew 1,352 registrations and resulted in over 1,100 leads processed through our lead management system.

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2012 Marcom Objectives and Tactical Execution

This plan recommends multi-channel communications to achieve our 5 marcom objectives. 1. Generate Leads 2. Engage Customers 3. Deliver Information 4. Support MPCs and Dealers Specific communication tactics used to achieve these objectives are listed below:

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1. Generate Leads Online marketing is the most efficient and cost-effective method of communicating with customers and will continue to be the primary focus of our marcom efforts. All marcom tactics, both online and traditional, will have a digital component that connects customers to our lead management process. Once again in 2012, over 80% of our marcom investment will be digitally connected. Global Search Engine Marketing (SEM) Cat EP sponsored keywords are seen by millions of searchers on a global basis and, as a result, SEM has consistently generated the most cost-efficient targeted traffic to our landing pages. Google research states that 70% of buyers have already made a purchase decision based on online research prior to their actual purchase. The 2012 SEM program will combine both global and regionally targeted campaigns designed to reach the largest number of prospective customers and deliver the most cost-effective lead generation possible. The chart below provides a high level summary of intended 2012 SEM: Campaign Language EP - English EP - French EP - Mandarin EP - Portuguese EP - Spanish Rental - English Search Engine Google Google Google, Baidu Google Google Google Geographic Coverage Global Global Global, China Global Global Global

Electronic Direct Marketing (EDM) A combination of internal proprietary databases and thirdparty list sources will be used to distribute a series of e-blasts to electrical engineers and contractors, as well as end-users in targeted high opportunity industry segments. The e-blasts will include links to the Power Generation Resource Center, which will provide visitors the opportunity to download relevant materials in exchange for providing their registration information. The EDM campaign will include global and regional distribution and, where appropriate, MPCs/dealers will be encouraged to distribute the e-blasts on a local basis to further extend the reach of the campaign. Paid E-Media Advertising may include rich media applications, widgets/gadgets, video, banners, buttons and profiles on business-to-business websites. These materials will be posted on highly trafficked websites and e-newsletters with links to the Power Generation Resource Center. In all cases, underlying tracking will provide activity reporting and ongoing performance evaluation. E14

media will continue to play a prominent role in building brand awareness, as well as contributing to the lead generation objective. Online Directories and Marketplaces Directories will offer visitors the ability to search a wide variety of industrial classifications including electric power. Positioning within appropriate categories on these highly trafficked sites will deliver additional brand exposure and the required registration will enhance our lead generation efforts. Additionally, online directories aggressively purchase keywords on traditional search engines (Google, Yahoo!, etc.) to drive traffic to their sites. This search engine activity complements our own SEM activity, effectively multiplying the potential for a prospect to receive information on Cat products and services. Caterpillar EP will participate in the following directories in 2012:

Trade Print Advertising Print advertising will continue to play a key role in an overall media mix by providing a vehicle to deliver a strong visual brand, product and value message. Independent research indicates business-to-business publications support brand awareness by providing a primary avenue for prospects to learn about new products. While online media supports the pursuit of the active buyer, print media complements this effort by providing a method to reach a targeted audience, even if they may not be specifically looking for the advertisers products at the time they are reading. A well-integrated media mix will support lead generation activity. To increase global awareness, communicate a customer focused message and generate sales opportunities in 2012, we will conduct an engaging trade print media advertising campaign specifically targeting electrical consulting engineers and contractors. Publications will be selected not only based on cost-effective delivery and maximized audience reach, but also because they deliver the Cat EP message wrapped in well-respected, relevant editorial content. All print ads will include dedicated URLs and QR codes that will link directly to the Power Generation Resource Center, increasing lead generation potential. Landing Pages Through 2010 and 2011, substantial enhancements were made to the Power Generation Resource Center. These improvements included expansion of languages (Mandarin, French, Portuguese and Spanish), RSS feeding of spec sheets, updated content and mobile optimization. In 2012 we anticipate adding a Russian language page to the Power Generation Resource Center. The Rental Power landing page was also redesigned in 2011 with expanded content and simplified registration requirements. In 2012 these 2 landing pages will continue to be our primary sources of lead capture. 15

Lead Management The global lead management system will continue to combine telephone lead qualification (EAME, EPLA, EPLA) with online self-qualification (EPAP) techniques to capture, prioritize and deliver sales leads to the global dealer network. We will continue to evolve the system to meet the unique needs of the MPCs while maintaining global consistency where necessary. In addition, we will continue to expand the program, where possible, to integrate MPC marketing activities into the lead tracking system. The global lead management system encompasses the following processes: Registration (lead capture) Lead tracking Database development Lead qualification Electronic fulfillment Metrics reporting

2. Engage Customers Social Media Strategy will be enhanced within the parameters of the corporate social media direction. This strategy will include efforts in relation to third-party communities (i.e., Facebook), events, blogs, video portals (i.e., YouTube), as well as other emerging social media opportunities. Social media will continue to be integrated into our Public Relations strategy and will include capitalizing on robust blog content for media pitching. Power Generation Online Community A steady stream of industry relevant blogs, topic threads and interactive events will be included in the content of the Online Community to encourage peerto-peer customer dialogue and support the positioning of Caterpillar as an industry leader in the electric power category. Online postings will also be supported by external marketing efforts to increase traffic to the community and participation in the online discussions. Ongoing updates and improvements will be made to the community, with the ultimate goal of creating the most robust customer-oriented/user-friendly environment possible. Greater emphasis will be placed on VOC analysis as our database of user-generated content continues to grow. Marketing Automation/Lead Nurturing Strategy will be developed for pilot programs to identify and test the retargeting of customers and prospects currently in our lead management database. These pilots may include cross-promotional efforts with related business units such as gas, rental power and product support. The goal of the effort will be to more deeply and frequently engage with our customers to maximize sales opportunity. This strategy will be developed in close cooperation with the Customer Services Support Division and the anticipated introduction of the enterprise marketing automation platform.

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3. Deliver Information Public Relations Globally, organizations are using Public Relations to deliver a highly credible message to audiences who may not be reachable through traditional paid advertising. It has been demonstrated that organizations that are able to effectively develop, manage and distribute their content are gaining a leadership position within their target markets and increased consideration scores with their customers. The 2012 Public Relations strategy will focus on the following areas: Expanded Online Presence As many media outlets continue to grow their online channels, our Public Relations efforts will play a stronger role in driving customers to our online resources. Content Development Will include materials for self-publishing on our internal communication portals including Cat.com, Olympianpower.com, online directories, the Power Generation Online Community and the Power Generation Resource Center. Where appropriate, content may also be shared with targeted trade publications and relevant industry websites. Media Relations Will garner editorial coverage that broadens our message, emphasizes quality and value, and positions Caterpillar as an industry leader and resource. May include remote media relations or interview coordination at selected trade shows. Subject Matter Expert (SME) Promotion and Support May include the identification of opportunities to demonstrate Caterpillar expertise and enhance leadership positioning on a variety of topics and the development of appropriate content that can be disseminated through multiple venues such as: Media interviews Bylined articles Blogs

Cat.com/Global Websites/Olympianpower.com Will be refreshed with new dynamic electric power content where available. Our 2012 content initiatives will include messaging enhancements for integrated systems (i.e., UPS, ATS and Switchgear) on the North American and global sites. Targeted regional enhancements will be completed for Mexico, Middle East/Africa, Australia, U.K., Ireland and Southeast Asia.

4.

Support MPCs and Dealers MPC Market Segmentation As part of our 2012 planning process, marketing contacts within each of the MPCs participated in a market segmentation exercise. The goal of the exercise was to prioritize target industries based on sales growth opportunities within their respective regions and 17

to identify specific customer needs and pain points within those industry segments. The output from the exercise was the identification of 6 target segments: Data centers Healthcare Utilities Construction Mining Nuclear

These segments have been integrated into our global messaging, media and Public Relations planning. We anticipate continuing to support the segments highlighted below throughout 2012:
EPAD North America Latin America Data Centers Mining Health Care Utilities Municipality Manufacturing Telecom Data Center Construction Telecom Transportation Commercial Business Construction Waste Water Treatment EAME Brazil Data Center Health Care Construction Manufacturing Banks / Financial Commercial Business Europe Data Centers Health Care Construction Telecom CIS Mining Utilities Africa Utilities Mining Health Care Construction Telecom Middle East Health Care Utilities Construction Telecom Mining Data Centers EPAP China Data Center Manufacturing Construction Commercial Buildings AUA Data Center Utilities Mining Health Care Construction Telecom

MPC Marcom Goals: Americas North Goals: Raise Product & Service Awareness Generate/Nurture Leads Support Dealers

Tactical Marketing Goals: Segment Marketing Datacenters (7x24, web & literature development) Healthcare (ASHE, IFMA, web & literature development) Municipalities (ASHE, NJPA, web development & e-Blast campaign/s) Telecom (CTIA, e-Blast campaign, 30-60 kW package promotion) Transportation (Ports/Tier 4 literature development, Rail) Consultant Coverage Consultants day event (April 23-27) Systems & Services message development Product Introductions C175-20 UPS (flywheel & double conversion) Compact Diesel 40-175 kW Telecom Package 30-60 kW 18

Lead Generation/Nurture Continuous improvement of lead follow-up Segment focused lead generation/e-blast campaigns Increased dealer conversion through online lead generation Implement CRM system for Caterpillar marketing and sales representatives Identify Marketing Synergy Opportunities with EP Americas Organization Telecom sales growth E-marketing campaigns Dealer web Development

Americas South Goals: Deliver Superior Results Achieve ATS of 6,526 shipments at $134M area dealer net ($130.6M net/net) utilizing less than 4% variance Profitably grow EPD business in Latin America Develop CSA/ESC sales/marketing pieces for dealers/customers

Tactical Marketing Goals: Drive Customer Focus Implement SFM reporting at EPLA top 10 dealers by end of year Develop and implement 3 targeted, segmented lead generation programs (Manufacturing, commercial segments plus at least one targeted in Brazil) by end of year Manage Google keyword search campaigns in Spanish/Portuguese, meet with EPD marketing/Gelia twice in 2012 to refine/update Optimize current dealer web presence at 5 dealers by end of year Profitably Grow EPD Business Drive CSA/ESC sales in Latin America to 4% of EPLA Retail Sales to have CSA/ESC coverage.

Asia Pacific Goals: Expand systems/solution demonstration program and targeted marketing to drive $ 5 million solution sales for 2012 Increase marketing efforts to drive participation to drive PINS improvement Ensure EPD NPI programs are backed up by well executed marketing program Increase marketing team customer interaction to drive marketing teams understanding of customer needs especially on system/solution products 19

Tactical Marketing Goals: Systems/Solution Demonstration Program Drive targeted demonstration programs for UPS module. Build additional EFIC and ATS module for above Promote critical power module in targeted areas. PINS Improvement Improve SEO results outside India Define best process for marketing to emerging data centre markets. NPI Programs Identify NPI program calendar for 2012 Define with sales team year 1 goals, design and execute marketing programs for the same Customer Interaction Revive quarterly updates from EP Marcom team to understand global best practice Conduct quarterly meetings with sales team to understand needs, trends and get feedback on existing programs

EAME Goals: Targeted marketing contributing to $25 million above BP 2012 sales Increase awareness with consultants, critical power, mining, retail, utilities, construction and telecom Develop EAME-CIS dealer marketing plans and customer profile with 4 EAME-CIS dealers Implement marketing planning measurement process with the top 10 EAME-CIS dealers with coop support

Tactical Marketing Goals: Segment Marketing Critical power: targeted exhibitions & PR coverage, web & video profile Construction: targeted exhibitions & PR coverage, web & video profile Google keyword search campaigns: standardize minimum dealer requirements for 2012 Consultant Coverage Malaga consultants day event (April 24-26) Develop dealer integrated consultant plans as per top 10 EAME-CIS dealers 20

Product Introduction NPI for 2012: E-marketing & target introductions Dealer focused plans and roll-out Memorable Moments 007 Bond: Licensed to power: Campaign and events London Olympics: Prospect initiative

Regional Marcom Funding As in the past, our 2012 plan will allocate a budget to directly support MPC digital marcom efforts. With this support we will stretch our global resources by identifying those opportunities and tactics that are most appropriate to be globally centralized and those that are best suited to be regionally managed and funded. Our previous activities, including regional SEM and EDM programs, have proven that locally managed marcom activities can be very successful and potentially more cost-effective. MPCs are closest to the dealers and dealers are closest to the customers, so it is only logical that each of these groups plays a more active role in our marcom process. We envision the role of the global marcom team continuing to evolve into more of a consultative resource, where MPCs and product groups would collaborate with the team to solve marketing challenges, identify opportunities and determine appropriate communication vehicles that complement each other on the local and global level. Dealer Marcom Training Scheduled dealer marcom training meetings will be necessary to ensure message consistency, proper use of the dealer marketing kit, adherence to global branding requirements and use of web best practices. Opportunities for training will be identified in 2012. Electric Power Global Dealer Marketing Communications Kit As needed, additional modules will be developed to provide MPCs and dealers with the materials they need to promote Cat Electric Power products on a local/regional level. Components of the modules may include templates for print ads, banners ads, direct mail, e-blasts, outdoor and POP advertising. The EP global team will continue to evaluate the usage of the kit to determine demand and identify the need for future modules and modifications.

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2012 Marcom Measurement and Metrics

Our measurement processes will track metrics to specifically address the impact on our marcom objectives. Generate Leads Quantitative data collection and tabulation derived from lead generation and management activities. The primary metrics tracked will include: Links Leads Active leads Potential sales Cat sales Data matching

Engage Customers Quantitative data collection and tabulation derived from analytics on the landing pages, Cat.com and the Online Community. The primary metrics tracked will include: Number of visitors to each destination Number of registered users Number of highly active discussion contributors Time spent on each site/page Areas/pages most frequently visited on each destination Frequency of content downloaded/popularity of content Most popular referring URLs Number of interactions/percent interaction Visitor geography

Deliver Information Will be measured based on the volume of viewing and downloading of information provided on the various online portals. This data will be collected using the tracking tools noted above.

Supporting MPCs and Dealers Will be measured based on qualitative evaluations of MPC/dealer support of and participation in the Cat Electric Power marcom plan, gained during regional dealer training sessions and remote teleconferences.

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III. Sales Support

2011 Sales Support Highlights
The sales support group is comprised of a team of marketing professionals who provide leadership and manage the marketing activities to support NPI, product maintenance and 6 Sigma program deliverables for Cat and Olympian branded diesel and gas generator sets, along with control and system products. The NPI-related tasks in which the team members are involved include: A consultative role to the NPI team within the early stages of an NPI program Management of the NPI GW 5.5 release of marketing materials in order to deliver complete, accurate, sales support materials to support the product launch 30 days in advance of the Open Order Board date to internal EP Marketing Profit Centers Follow-up through GW7 in order to ensure a successful launch and to capture lessons learned

Similar support to that shown above is provided for product maintenance and 6 Sigma programs. Power Net is the preferred delivery method for these marketing materials. As a whole (i.e., all industry segments), Power Net had 7.2 million page views in 2011; Electric Power was responsible for 3 million of those. EP Power Net hits were up 50% in 2011, compared to 2010.

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The sales support group enabled the effective launch in 2011 of projects with a combined NPV of over $54 million. The graphic below highlights the projects supported in 2011 with the NPV of each respective project (when available):

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2012 Sales Support Tactics

NPI, Product Maintenance and 6 Sigma Programs The EP product group continues to respond to customer needs and industry trends by developing quality, reliable products. The sales support group will enable the effective launch in 2012 of 25 NPI projects and 18 maintenance programs. The graphic below highlights the projects to be supported and the anticipated NPV for each respective project:
2012 Marketing NPI and Maintenance / 6 Sigma Programs
Retail NPI Programs (14) OLY Lean 400 / Kubota @ Larne/APS Lean 1103 PSB OLY 1106A TAG3 & TAG4 Intro Larne OLY 1106A TAG1 - TAG4 Intro APS OLY Navistar 1606 Intro Larne CAT Lean I6 ROW (C13) Larne Lean I6 ROW (C13) Newberry Lean I6 ROW (C13) APS Lean I6 ROW (C13) PSB Lean I6 ROW (C15 & C18) Newberry Lean I6 ROW (C15 & C18) PSB Lean I6 ROW (C15 & C18) APS CAT Compact (4.4 & 6.6) EPNA C9 Transition to Newberry Investor NPI Programs (8) C27 Newberry (T2 & Low BSFC) Transition C32 Newberry (T2 & Low BSFC) Transition V12 Enclosure 3512 w/ SR5 3516C Tier 4 Interim (2.0MW) C175-16 Tier 4 C175-20 4000MW Standby C175-20 (Prime/Continuous Launch Systems NPI Programs (3) UPSB 1100 UPSB 805 UPSB 500 Retail Maintenance / 6 Sigma Programs (4) Lean I6 EMCP 4.3 & 4.4 into Larne Lean I6 EMCP 4.3 & 4.4 into APS Cat I6 EMCP 4.3 & 4.4 into Newberry OLY EU3 Lean 1100 S3 88-110kVA Investor Maintenance / 6 Sigma Programs (9) 3500 EMCP 4.3 & 4.4 into Larne 3500 EMCP 4.3 & 4.4 into Lafayette 3500 EMCP 4.3 & 4.4 into Newberry 3500A/B Positive Build 3500C Positive Build 3512 Larne Auto Upload 3516 Larne Auto Upload 3500 50Hz EPS rating 50Hz Mission Critical rating Systems Maintenance / 6 Sigma Programs (5) ATS Updates SWGR Updates Controls Updates UPSF Tool and Resource Development UPSB Tool and Resource Development

We will support multiple NPI, product maintenance and 6 Sigma programs in 2012, including those of Tier 4 and the EMCP4, with established materials such as Product News, spec sheets, sales brochures, TMI information and Power Net content. Within the materials mentioned, a special emphasis will be placed on communicating the value proposition of our products. Web Presence The Internet will continue to be the preferred source for product information. We will continue developing technical and sales support content to be used by dealers and customers on EP Power Net, Cat.com and Olympianpower.com. This will include adding content, restructuring web pages and removing outdated information to ensure a quality experience for the user. Approximately 3.5 million hits are anticipated for EP Power Net in 2012.

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Technical Marketing Information (TMI) Support The TMI website is the driver of technical data for all Cat EP products and is one of the most used websites by both Caterpillar and Cat Dealer personnel. In fact, as shown in the graphic below, over 81% of TMI users are dealer personnel; a further split shows that TMI utilization is driven by service, sales, parts and other departments (including engineering), in that order. 2011 TMI Users by Affiliation 2011 TMI Users by Job Role

Notwithstanding the fact that an overwhelming number of TMI users (94.8%) are satisfied with their experience, we will continue to work with owners of product information, including engineering groups and the Commercial Processes Division, to validate the data displayed.

2011 TMI User Experience

Engineering product group ownership of TMI data and drawings packages is critical. The high level of user satisfaction we have experienced is based on the ongoing efforts of the EPD Commercial Marketing team to fix erroneous data. 26

Support Materials Marketing materials are crucial in communicating not only with end-users, but also the dealer community that works closely with customers on sales and product support activities. Based on requirements from the NPI, product maintenance and 6 Sigma programs, we will continue to develop quality, accurate support materials (videos, brochures, images, drawings, renderings, manuals, etc.) that emphasize our value proposition.

Ratings Guides including Spanish Olympian version

IBC Testing Videos

SpecSheet Wizard SpecSheet Wizard is an interactive tool that allows us to support 25,000 custom product spec sheets that can be printed in 7 languages. Customers can create a dynamic spec sheet that becomes the foundation of technical data on our products. We will continue to improve data in TMI, which is pulled in to the SpecSheet Wizard, to increase the accuracy and usefulness of the more than 15,600 spec sheets created on the Wizard each year. In 2012, SpecSheet Wizard will directly support the launch of NPI programs with an anticipated NPV of $104 million.

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Installation Drawings for Mechanical and Electrical Schematics New composite-style installation drawings are being released for all NPI launches in 2012; in addition we are working with the Product Group to streamline the drawing creation process. In 2012 we will refocus our marketing efforts to create customer-friendly installation drawings (mechanical and electrical) for our retail products (600kW and less) to make it easier to do business with Electric Power.

Communications Regular communications are valuable to ensure that global dealers and internal employees are kept updated regarding content available for both sales and service activities. The monthly EP Commercial Marketing team newsletter covers Sales Support, Marcom, Sales Tools, Sales Training and Application Support Center/Application and Installation/ Design to Order activities for both Cat and Olympian brand products. We will continue to expand the monthly newsletter to reach even more dealer and internal employees and make changes by continually gathering VOC. The newsletter is e-mailed to over 510 Caterpillar and Cat Dealer personnel. The newsletter is then posted and archived on the EP Power Net in the News section.

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Industry Presence Because of the technical nature of the electric power industry, manufacturers of generator sets are looked upon to identify trends and educate the general marketplace. We will continue to be a trusted source for not only Cat and Olympian product information, but also a knowledgeable source for industry trends and customer needs by working with trade publications and trade associations, as well as producing white papers.

MPC Support By working closely with dealers, the EP MPCs provide a better sense of customer needs and suggest improvements for sales support. We will continue to communicate directly with each of the MPCs and increase overall training opportunities to provide greater product knowledge. Additionally, regular teleconferences and webinars will help facilitate communication.

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IV. Sales Tools

2011 Sales Tool Highlights
Requests for SpecSizer software, which is distributed primarily through electronic file transfer, come mainly through a landing page on the web. A total of 4,567 such requests were received in 2011; the details gathered from the request process were then fed into our lead management database.

Of the SpecSizer inquiries received in 2011, we converted 2,746 to registered users (i.e., individuals that actually loaded the SpecSizer software and sent in registration details for updates). That is an increase of 75% over the registered users we had in 2010, bringing the total number of registered users to 6,423. A breakdown of the registered users shows the geographic dispersion and usage across a broad spectrum of customer groups.
EAME EPAP EPLA EPNA TOTAL

Consultant
Contractor Dealer

523
100 365

246
35 244

270
30 147

2,581
167 565

3,620
332 1,321

Employee End User

Installer Other

39 152
43 30

20 87
19 11

2 80
16 11

72 406
43 65

133 725
121 117

Supplier
TOTAL

25
1,277

10
672

1
557

18
3,917

54
6,423

There were 2 releases of the SpecSizer software in 2011, Version 2.6 and Version 2.7. As expected, these updates reflected our NPI activities and product maintenance changes; in addition they also incorporated a 30

number of enhancements learned through VOC. The net result is a program that, based on user feedback, continues to lead the industry. Version 2.6
Supports new installations using Windows 7 and 64-bit operating systems Ambient temperature down to 10 degrees C Expanded altitude range from 3,000 to 3,200 meters (display and calculation) Update for "Go To Best Fit Genset" capability

Version 2.7
Added Olympian High Ambient and Canopy Sizing Added 2 new ATS guide specs: Cat Contactor ATS and Cat Breaker ATS Added new UPS guide specs and added UPS to Guide Spec UI dialogue Added filtering option on EPNA for Tier 4 gensets Revised Guide Spec UI to add EMCP 4.1-4.4

In mid-March 2011 we began to capture aggregated usage information for SpecSizer. This provides us with insight as to the actual utilization of SpecSizer - how many of our registered users are active users, for what size of gensets and applications are they performing sizing calculations and what features are they selecting. We are also able to look at utilization of SpecSizer by saved sizing files, which provides a good indication of user acceptance.

As mentioned, a number of additional details can be gathered with these reports, including usage by application and size. Reviewing the 2011 statistics we can see that most sizing files are for standby gensets at an average rating of 678 kW.

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Given the number and diversity of SpecSizer users, it is not surprising to see that the actual usage is skewed, where 24% of active users perform 76% of the saved sizing file calculations.

In an effort to increase SpecSizer utilization, training was provided in 2011 for each MPC, reaching approximately 255 dealer personnel and 135 customers.

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2012 Sales Tool Tactics

Ensure Data Integrity SpecSizer presently draws data from a number of technical sources, some of which present challenges as to accuracy and completeness. To rectify data issues, the SpecSizer manager presently vets all data before each release - a time-consuming endeavor which impacts our velocity. Work is already underway to itemize the specific data issues encountered, identify root causes and determine work required to ensure data integrity without the intervention of the SpecSizer manager.

Capture Discrete User Information In 2012, subject to user agreement, we plan to capture and disseminate SpecSizer usage information by individual user. This will allow us to engage SpecSizer users in a number of focused activities including quick identification of high potential opportunities, ensuring adequate sales coverage of our most active/high value users and/or targeting training opportunities.

Improved SpecSizer User Experience The importance of the effective utilization of SpecSizer, both by dealers and customers (i.e., engineers, contractors and end-users) cannot be overemphasized. SpecSizer recommends the optimal generator set based on a number of customer inputs. Lack of familiarity with SpecSizer by the user means that inputs that best describe the application are overlooked, often causing the generator set to be oversized, which ends up costing the customer extra or could cause Caterpillar to lose the sale due to an unnecessary price premium. We plan to expand SpecSizer training beyond dealers and selected customers to as many registered users as possible. The discrete user information mentioned above will help us to target this training.

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V. Sales Training
2011 Sales Training Highlights
Dealers continue to be engaged in our sales training initiatives. As a result, we were able to meet our 2011 EP Foundational Certification goals. As of December 31, 2011, there were 1,836 EP Foundational Certified sales professionals around the world.

We introduced 8 new dealer courses and 4 new customer courses in 2011.

Dealer Courses
Selling Cat UPS Systems Cat Electronic Communications EMCP4 Fundamentals of Paralleling Gensets Basics of Owning and Operating Costs Selling Cat Systems CSAs Introduction to AES (Advanced Electrical Services) Electric Power Sales Alternatives

Customer Courses
Cat Electronic Communications EMCP4 Basics of Electricity Fundamentals of Paralleling Gensets

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Beyond taking the courses required for Foundational Certification, dealer personnel are able to take hundreds of other web-based training courses on the Dealer Performance Center (DPC). These include a further 35 Electric Power courses which can be considered electives. In the past 12 months, approximately 1,230 dealer personnel have taken over 3,300 elective courses. As shown in the following table, which is based on completed Electric Power electives, these learners are spread throughout the world:

Beyond courses released for customers, we reach out to customers through Cat reps using the Seminar in a Box concept. This consists of a presentation, script and automated process to provide Continuing Education Credits (CEUs) for dealer-hosted seminars. In 2011, there were approximately 235 customers involved in Seminar in a Box events.

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2012 Sales Training Tactics

Maintain Integrity of Web-Based Training Courses Some of our training courses were actually created before we launched the campus in 2007. We have made updates to courses as required but will conduct a review in 2012 to determine what, if any, updates are still required. Interactive Instructor-Led Training We believe web-based training provides excellent value in terms of course availability and geographical reach for most of our sales training needs. However, dealers continue to request instructor-led training courses. Given the increased availability of web conferencing applications, we are planning to test the concept of interactive instructor-led training in the second quarter of 2012. The interactive component will come from a series of periodic pop-up questions that ensure learner engagement and comprehension. Customer Focus Uptake by Cat reps and their dealers has been increasing and reps have multiple Seminar in a Box events planned for 2012. We will continue to leverage existing material to create additional Seminar in a Box topics with a goal to having 4 of these offerings by year-end. In terms of web-based training, we have a total of 11 courses focused on customers and plan to expand the availability of the web-based training courses for them in 2012.

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VI. Resources
Contacts Sales Support Mark LaRue Training and Tools Bryan Schaefer Global - Diesel Chuck Boysen Mitch Colgan Glenn Woodard Vicki Seaman EAME Bob Woodley EPAP Parthan Nagarajan Eugene Khaw K.T. Chandrashekar EPLA Lisa Demetrius-Walker Demetrius-Walker_Lisa_N@cat.com
Alex Rojas Rojas_Alex_N@cat.com +1 954 885 3182 +1 954 885 3179

LaRue_Mark_A@cat.com

+1 309-578-3516

Schaefer_Bryan_D@cat.com

+1 770- 233-4047

Boysen_Charles@cat.com Colgan_Mitch_J@cat.com Woodard_Glenn@cat.com Seaman_Vicki_J@cat.com

+1 309-578-4962 +1 309-578-3646 +1 309-578-3212 +1 309-578-3545

Woodley_Robert_F@cat.com

+41 22 849 4059

Parthan_N@cat.com khaw_eugene@cat.com
chandrashekar_k_t@cat.com

+1 65 6828 7531
+65 6828 7661

+91 80 4111 7930

EPNA Jennie Tylec Diane Samp Tylec_Jennie_D@cat.com Samp_Diane_M@cat.com

+1 309-578-3471 +1 309-578-6708

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Electric Power Reference Links Power Net Resources: https://engines.cat.com/ep/marketing Resource Center Landing Page: www.catelectricpowerinfo.com Cat.com: http://www.cat.com/power-generation Cat.com mobile: http://m.cat.com/cda/files/2029846 Olympianpower.com: http://www.olympianpower.com Online Community: Home Page: http://www.catelectricpowerinfo.com/connect Power Perspectives Blog: http://www.catelectricpowerinfo.com/blog YouTube: http://www.youtube.com/user/CatPowerGeneration Facebook: http://www.facebook.com/Caterpillar.Electric.Power

Caterpillar Inc. (Corporate) Reference Links Cat.com: http://www.cat.com Cat.com mobile: http://m.cat.com Online Community: https://caterpillar.lithium.com YouTube: http://www.youtube.com/caterpillarinc Facebook: http://www.facebook.com/caterpillarinc Twitter: https://twitter.com/CaterpillarInc

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VII. Glossary of Marcom Terms

General Internet/Web Terms
Bail Out A measure of visitors to a web page who leave the page without taking any action. Bounce Back A measure of e-mails that are not delivered and are returned by the intended recipients server. Bounce Rate A measure or percentage of website visitors who leave a website without taking any action on that site. CTR or Click Through Rate A measure of the percentage of respondents who click links within banner ads or e-blasts. Landing Page The first page a user sees after clicking on a link. For Cat EP, landing pages are further defined as including registration functionality to encourage lead generation. Microsite A condensed, topic-specific website, designed to support a specific marcom activity. Open Rate A measure of the number of e-blasts that get opened by recipients. Page Views A measure of the number of times individual website pages are viewed by visitors. Portal The door users enter when accessing the web. Cat EP defines its portals as Cat.com, landing pages or the Power Generation Online Community. Referring Sites Analytics that identify where website visitors came from. Splash Page The first page a user sees after clicking on a link. Includes content specific to a marcom message. Can be part of a landing page or microsite. Tag A barcode design that, when scanned with a mobile phone application, connects to a designed online location. Tag Reader An electronic device for reading printed barcodes (tags). Traditionally downloaded as an application. Can sometimes be pre-loaded on a mobile phone. Unique Visitors A measure of the number of unique individual visitors to a website during a set reporting period. URL An address that a browser uses to find and display a website. Visitors A measure of total number of times a website is visited.

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Lead Management Terms

Active Lead Prospect who has indicated that they plan to purchase within 12 months. Lead A prospect with full contact information (name, address, etc.). Lead Follow-Up Process of re-contacting active leads after 90 days to determine if there is still potential for a sale. Link An action taken by a prospect that results in a visit to one of our online portals. Is also sometimes referred to as a Click. Profiled Contact A person who has registered on the landing page, but who has not indicated a specific timing for their purchase. Prospect A potential customer who has responded to our marcom activities. Tracking URL Unique tracking code displayed as an extension to a URL that allows us to monitor link counts.

Marketing Terms
Marketing The 4 Ps of Marketing: Product - Characteristics of our products and integrated customer solutions that satisfy and meet their needs; Price - Price package strategy that the customer perceives as a value package; Promotions - Communication channels appropriate to targeted customer groups; and Placement - Distribution of products and services available to the customer groups we serve. Marketing Communications (Marcom) Message development and delivery direct from Caterpillar to the marketplace using a variety of media including web and print advertising, paid search, public relations, corporate websites, landing pages, sponsorships, Power Profiles, white papers, etc. Sales Support Content development and delivery of technical/sales materials from Caterpillar to dealers including spec sheets, SpecSheet Wizard, data sheets, ratings guides, Product News, A&I Guides, dealer/customer training modules, sales presentations and tools.

Media /E-Media Terms

Banner Ad A standard online ad unit, most commonly 468x60 pixels. Button Ad A standard online ad unit also referred to as a Tile. E-Blast An e-mail sent to multiple recipients at the same time. Can be HTML or text format. Impression A measure of the number of individuals that have viewed a communication. Podcast Audio presentation that can be downloaded to a computer or MP3 player. Rich Media Technologies that enhance interaction, multi-media and transaction activity between users and web content. Webcast/Webinar An audio/video presentation transmitted over the Internet. Can be live or prerecorded material broadcast online.

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Search Engine Terms

CPC or Cost-Per-Click The amount paid each time a visitor clicks on a purchased keyword link. Keyword Word or phrase used to find related web pages via a search engine. Keyword Ranking The position the keyword is presented relevant to competing advertisers. Typical target ranking is 1st to 3rd position. Paid Search The process of purchasing targeted keywords on search engines. Also referred to as PPC or Pay-Per-Click. Organic Search Natural results (listings) that appear as a result to a search engine query. Relevancy A measure of the quality of the match between the search query and the content of the results. SEM or Search Engine Marketing The process of purchasing targeted keywords on search engines. SEO or Search Engine Optimization The process of making pages of a website more easily searched to improve organic search positioning.

Social Media Terms

Blog Publicly available web page expressing the opinions and observations of a particular person on a specific topic. Chat Real-time personal communication via typed messages. Facebook Predominant social networking service that allows users to share content, participate in interest groups and engage in one-toone conversations. Forums A space to encourage online conversation on a specific topic. Online Community An online space that provides multiple forums for participants who share common interests. Post Individual question, response or comment posted online. Re-Tweet To repost another user's message on Twitter, a micro-blogging service. RSS or Really Simple Syndication Allows for direct feeds of selected news or content to be automatically delivered to an individuals computer. Social Media Online technologies and practices that people use to share opinions, insights, experiences and perspectives. It can take many different forms, including text, images, audio and video. Social media sites typically use technologies such as blogs, vlogs, message boards, podcasts and wikis to allow users to interact. Social Networking Linking people of like interests and creating opportunities for them to interact through instant messaging, e-mail, discussion group, forums, bulletin boards, blogs and other features. Thread Discussion topic introduced to encourage online dialogue. Tweet A 140-character post or status update on Twitter, a micro-blogging service. Twitter Micro-blogging service used to deliver frequent, short messages (140 characters or less), often with links to more detailed content. YouTube Searchable video hosting service that encourages viewer feedback. Wiki A web page that allows multiple users to easily create and edit content.

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