Short Shipments/Pre-Delivery Defects Electric Rope Shovels and Drills February 2013

2 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Agenda Definitions Process review –Short shipments –Pre-delivery defects Process highlights –Short shipments –Pre-delivery defects Contacts

3 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Definition Shipping discrepancies are referred to as Short Ship and apply to situations where parts were ordered with a machine but were not received. Pre-delivery defects are defects encountered during start-up/commissioning that cannot be classified as normal pre-delivery inspection. –Normal pre-delivery inspection includes checks for proper equipment operation, fluid levels, tire pressure, literature, etc.

4 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Short Shipments Please reference Short Shipment Process Flow

5 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Pre-Delivery Defects Please reference Pre-Delivery Defects Process Flow

6 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Revised Warranty Claim Form

7 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Claim Timing The claim for a short shipment must be filed within 60 days of each shipment. The product must be checked upon arrival by the dealer.

8 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Process Highlights—Short Shipment 3 step process involving the CRR and the DPSC Approval: –Dealer identifies need for short shipment –Dealer completes SS Authorization Form and sends to product group contact Short shipment requests under 1,000 USD do not require an authorization form to be submitted –Product group approves/denies request within 2 business days –Approval/denial communicated to dealer Authorized short shipment forms will be ed back to dealer

9 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Process Highlights—Short Shipment Parts Order: –Post short shipment approval, dealer places “P1” parts order through Antares –Antares routes order to appropriate DPSC –DPSC either sources part locally or procures from factory –DPSC ships to dealer –DPSC invoices dealer

10 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Process Highlights—Short Shipment Reimbursement: –Upon placing parts order, dealer completes warranty claim form, indicating a short shipment –Claim form and approval form are sent to CRR –CRR reviews form for completeness and routes to the appropriate warranty contact –Warranty coordinator adjudicates claim and remits payment

11 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Process Highlights—Pre-Delivery Defects Detection: –Dealer technician on site recognizes defective machine component Completes NCR report and notifies supervisor –Dealer supervisor opens work order for defective part –If component is repairable, dealer should proceed with correcting the defect Any parts needed to correct defect should be ordered through Antares –If the component is irreparable, dealer should order new part via Antares –If Dealer determines need for additional engineering assistance from Cat, a DSN ticket should be submitted DSN contacts factory service engineers where necessary

12 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Process Highlights—Pre-Delivery Defects Reimbursement: –Upon completing repair, dealer populates warranty claim form, indicating a pre-delivery defect –Claim form is sent to CRR –CRR reviews form for completeness and routes to the appropriate warranty contact –Warranty coordinator adjudicates claim and remits payment

13 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING Contacts Product LinePre-Delivery DefectsShort Shipment Electric Rope Shovels South America CRR Lisa Krause DrillsSouth America CRR Linda Krueger

14 / Caterpillar Confidential: GREEN / WHEREVER THERE’S MINING