12/14/2018 MACHINERY / MULTI-INDUSTRYCAT November Retail Sales Statistics: Machine Sales Resilient Despite Tougher Comps:CATreported November retail stats, citing Machine sales up 16% y/y, compared to October which was up18%. However, this was on tougher comps for both Resources and Construction. Despite toughercomps, Resources sales accelerated to up 47%, from up 46% in October, with NA improving to 66%(from 46%), Lat. Am. up 49% (from up 82% but on much tougher comps), EAME up 12% (vs up 11% lastmonth), and Asia Pacific up 81% (vs up 85% in October). Construction sales were up 9% vs up 12% inOctober, though on tougher comps. Asia Pacific was up 5% (from up 8%), EAME was up 10% (from up9%), Lat. Am. was down 3% (from down 1%) and North America was up 13% (from up 18%).E&T SalesImprove on Similar Comps:E&T sales were up 13% in November, better than October which was up7%. O&G held up nicely, up 20% and same as last month despite tougher comps. Transportation wasdown 9% (vs down 27% last month) while Power Gen improved to up 21% (from up 13% though oneasier comps). Finally Industrial was down 6%, following an 11% decline in October. (Link to Note)Caterpillar Board of Directors Elects CEO Jim Umpleby as Chairman; Elects Dave Calhoun asPresiding Director:The Board of Directors of Caterpillar Inc. elected Jim Umpleby, the company's ChiefExecutive Officer, to the additional position of Chairman of the Board. Umpleby has been a member ofthe Board and Chief Executive Officer since January 1, 2017. Dave Calhoun, who has served as non- executive Chairman since April 1, 2017, will remain on the Board as Presiding Director. Both moves areeffective immediately.Caterpillar Announces New Responsibilities for Officers and Appointment of New Vice President: Caterpillar Inc. today announced several changes in responsibilities for current vice presidents. Thecompany's board of directors also appointed a new vice president. All moves are effective January 1,2019.New Responsibilities for Distribution Services Leaders:Caterpillar's Services, Distribution andDigital (SD&D) segment is restructuring its distribution divisions to better serve its global customer anddealer base. By concentrating our distribution support into three distinct regions, we are better able tosupport our dealers and customers around the world, said SD&D Group President Bob De Lange. Ourleaders will provide the expertise and focused local resources to support our dealers in offering theproducts, solutions and services our customers deserve. Raymond Chan, who was first named a vicepresident in 2015 and currently has responsibility for the Asia Pacific, CIS, Africa & Middle EastDistribution Services Division, will now oversee the Asia Pacific Distribution Services Division. PhilKelliher will transition from the vice president of the Americas and Europe Distribution Services Divisionto the vice president of the Americas Distribution Services Division. Kelliher has been a Caterpillar vicepresident since 2015. Nigel Lewis, currently vice president of Global Aftermarket Solutions Division, willnow have responsibility for the Europe, Africa and Middle East Distribution Services Division. Lewisbecame a Caterpillar vice president in 2012.New Leadership for Global Aftermarket SolutionsDivision:Current Global Construction & Infrastructure (GCI) Division Vice President Damien Giraud,who was named a vice president in 2017, will now lead the Global Aftermarket Solutions Division withinSD&D. Damien's deep product and marketing background will serve him well in his new role overseeingour aftermarket division, which is key to growing our services offerings, said De Lange.New VicePresident Appointed for Global Construction & Infrastructure Division:Caterpillar's board ofdirectors has appointed Jason Conklin, currently industry region manager within GCI, to the position ofvice president of GCI. Jason brings nearly 20 years of progressive sales and product experience to thisrole and a strong background in building relationships with dealers and customers during assignmentsaround the world. Combined with his ability to execute on strategic priorities, he is an excellent fit to leadGCI, said Construction Industries Group President Tom Pellette. Conklin joined Caterpillar as an internin 1998 before moving into marketing and sales roles around the United States in various constructiondivisions. In 2012, he became the industry sales manager for the Building Construction ProductsDivision. He moved to Switzerland in 2015 to become a product manager within Caterpillar'sEarthmoving Division before taking on his current role as industry region manager within GCI. Conklinholds a bachelor's degree in Business Administration from the University of Illinois.United Rentals Presents Strategic Vision and 2019 Financial Guidance at Investor Day; Reaffirms2018 Guidance; Resumes Share Repurchase Program:United Rentals, Inc. held its biennial InvestorDay in New York City on December 11, 2018, to provide an in-depth look at a range of key initiatives.The event, hosted by senior leadership for members of the investment community, focused on thecompany’s strategic vision, sustainable competitive advantages and emphasis on long-term valuemaximization. The company reaffirmed its 2018 financial guidance and announced full year financialguidance for 2019. Michael Kneeland, chief executive officer of United Rentals, said, “We’re continuing toposition the company for enduring success by balancing growth, margins, returns and free cash flow.Differentiation is a critical element of our strategy – our business is firmly grounded in sustainablecompetitive advantages that we believe will benefit our shareholders in any environment.” Kneelandcontinued, “Our 2019 guidance reflects the healthy momentum we see going into year-end and our12/14/2018 confidence that positive conditions will prevail in the coming year. Our five 2018 acquisitions have beensuccessfully integrated, increasing the tailwinds in our gen-rent and specialty segments. We look forwardto reporting our fourth quarter results on January 23.” Additionally, the company announced that it willresume its $1.25 billion share repurchase program this month. The program was initiated in July 2018,with approximately $210 million of shares purchased through September 30, 2018. The Companysubsequently paused the program on November 1, 2018 to focus on the integration of the BlueLineacquisition. The company intends to complete the program by the end of 2019. ( 2019 Outlook:Totalrevenue: $9.15 billion to $9.55 billion; Adjusted EBITDA: $4.35 billion to $4.55 billion)Caterpillar Inc. Maintains Dividend:The board of directors of Caterpillar Inc. voted to maintain thequarterly cash dividend of eighty-six cents ($0.86) per share of common stock, payable February 20,2019, to shareholders of record at the close of business on January 22, 2019. Caterpillar has paid higherdividends to its shareholders for 25 consecutive years and, since 2009, the company's quarterly cashdividend has more than doubled. Caterpillar has paid a cash dividend every year since the company wasformed and has paid a quarterly dividend since 1933.Ashtead Group – Q219 Results – Initial Take:CS analyst Daniel Hobden published the following in anote:Overall:A good set of results from Ashtead with a c.6% beat vs. consensus estimates at theadjusted EBITDA line and management expecting full year results ahead of prior expectations.Performance held up despite the tougher comparables with management not seeing at the ground levelthe challenges being implied by the financial markets.Key numbers:Invested 1,063m in capital and afurther 362m spent on bolt-on acquisitions (Q217; 298m) adding 80 locations and fleet growth of 15%;ND/EBITDA 1.8x (Q218; 1.8x); Interim dividend increased by 18% to 6.5p per share; Sunbelt US grewrental only revenue by 19% (16% organic and 3% bolt-on), in line with Q119 and despite