Immigration Reform Info Session

1. Immigration Reform Info Session Friday, June 7

2. Safety Briefing Remote participants, please review safety information for your location • Room Hazards and Exits • Take Cover (Red – Cover your head) • Evacuation (White – Take flight) • Who will be the Emergency Caller? • Who is CPR/AED or First Responder Certified? Please note that Caterpillar policy does not allow for All Employee Meetings or other meetings to be recorded with smart phones or other devices unless specific approvals have been sought and granted prior to the beginning of the meeting.

4. Agenda • Why Immigration Reform? • Gwenne Henricks, Chief Technology Officer & VP • Senate Bill – S. 744 Overview • Mark Peters, Immigration Counsel • Outlook & Progress to Date • Katie Hays, Governmental Affairs Manager • Q&A

5. Caterpillar is a Global Leader……with Global Competition

6. How We Will Remain Competitive? We must innovate to differentiate our products and meet our customers’ needs. Engine Emissions Hybrid Technology Autonomous Solutions Alternative Fuels Electric Drive Technology

7. Industry Leading Investment in R&D $8 Million 3.7% of Sales & Revenues per Working Day

8. Leveraging Deep Technical Expertise 10,000+ Global Technical Community Patents Active Worldwide Patents Granted in 2012 Technical Stewards 7,000+ 994 100+

9. How Do We Keep the Pace? Continued innovation requires a sustainable pipeline of workers with an education in the fields of science, technology, engineering and math (STEM)

10. Building the Pipeline • Pipeline programs for students of all ages • Internships & practicum opportunities • Strategic university partnerships • Diversity & inclusion initiatives • Scholarship programs

11. It’s Not Enough • STEM job growth through 2018: 17% • Non-STEM jobs growth through 2018: 9.8% • STEM graduates have steadily declined since 2003 • In 2008, just 4% of all bachelor’s degrees were in engineering

12. How Do We Close the Gap? Caterpillar relies on highly-skilled foreign nationals to help us remain competitive and productive today, but it’s not easy. • Tedious process • Insufficient visa allotment • Limited mobility • Backlog and long wait times for green card

13. Agenda • Why Immigration Reform? • Gwenne Henricks, Chief Technology Officer & VP • Senate Bill – S. 744 Overview • Mark Peters, Immigration Counsel • Outlook & Progress to Date • Katie Hays, Governmental Affairs Manager • Q&A

14. Senate Bill – S. 744 • Border Security, Economic Opportunity and Immigration Modernization Act • Introduced April 17, 2013 by the “Gang of Eight” • Bipartisan – 4 Democrat, 4 Republican Senators • No comprehensive bill introduced in the House yet • “Mark-up” on Senate bill completed May 23, 2013 • Debate in the Senate will begin on June 10, 2013

15. Senate Bill – S. 744 Overview • Secure the Borders • Provide a pathway for those illegal to become Registered Provisional Immigrants (RPI) • Provide a new low-skilled worker visa “W Visa”

16. Senate Bill – S. 744 Overview • Non-immigrant Visa • F-1: Establishes dual intent status for student visas • H-1B • Adjust cap from 65,000 to 115,000 with possible market based increases up to 180,000 • Increase master’s cap from 20,000 to 25,000 • H-4 Spousal Employment • Allows certain aliens to revalidate visas in the US

17. Senate Bill – S. 744 Overview • Green Card / PR Backlog • Exempt EB-1s, PHDs, US university advanced STEM degree holders and family members from the cap • Eliminate per country limits • Green Card / PR Portability • Employee with approved labor certification / immigrant petition could change jobs or employers without losing place in line for PR if the job is similar to occupational classification • Early Adjustment of Status (AOS)

18. Legal Services’ Role • Work closely with Governmental Affairs Office • US Chamber of Commerce • Provide input on proposed legislation, bills and amendments • April 24 and 25: Met with staffers from House and Senate offices to discuss Caterpillar’s views in Immigration Reform • Reforming Immigration for a Better America forum, Washington DC, April 26 • Illinois Business Immigration Coalition

19. Agenda • Why Immigration Reform? • Gwenne Henricks, Chief Technology Officer & VP • Senate Bill – S. 744 Overview • Mark Peters, Immigration Counsel • Outlook & Progress to Date • Katie Hays, Governmental Affairs Manager • Q&A

20. Outlook for Immigration Reform • After 2012 elections, it appeared all sides, especially Republicans, want to pass Comprehensive Immigration Reform (CIR). • The Senate “Gang of 8” worked tirelessly to produce a balanced package that all 8 pledged to support and pass. • Out of the gate, there were many outside groups pushing for CIR including liberal and conservative groups. • Still unclear what a final package may look like, but we keep moving forward – it will take broad support to get it over the goal line. • Senate passage is only the first big test. Many details remain to get it signed by the President following the Senate vote.

21. Senate • Markup of S. 744 was completed on May 22, after three weeks and hundreds of amendments. • Vote out of Committee was bipartisan and ensured that the Gang of 8 was indeed sticking together. • Amendments to improve the bill were included. • Senate will begin debate on S. 744 next week and should have a vote on final passage before June 28. • Gang of Eight hoping to have close to 70 votes to pass (must have 60 to get past a filibuster).

22. House of Representatives • House Judiciary Committee hearings will begin in June. • Another Gang of Eight working in the House – have hit some snags but still hope to introduce a bill. • Three bills introduced: E-verify, Ag worker, and high-skilled. • Following hearings on those bills and following passage in the Senate, House leadership will determine the best way forward – either to go to Conference with Senate, Pass Senate bill, or pass pieces of bill.

23. SENATE IS HERE

24. Caterpillar’s Role Very active and engaged role to date: February – Gwenne Henricks interviewed for Financial Times and Kim Hauer interviewed for the Free Enterprise Magazine. March – Joined the InSPIRE STEM coalition and CEO attended White House Meeting. April – Oberhelman speech on CIR with Mayor Rahm Emmanuel, Hays presented at NAM Panel, LA Times interview, and Peters participated in Chamber Panel. May – Henricks testifies in Senate Commerce Committee, Hays panel with House Immigration Caucus.

25. Coalition Partners • inSPIRE STEM – started by Microsoft in January 2013 to promote the need for High-Skilled immigration along with the need to do more to inspire US students to go into STEM fields. • Partnership for a New American Economy • Illinois Business Immigration Coalition

26. How Can You Help? Visit our Governmental Affairs Website! • http://catgovernmentalaffairs.com • Read our position and documents on Immigration Reform • Learn what our partners are saying Write your Members of Congress! • We will direct you to where you can write letters to your Senators and Congressmen to encourage them to pass CIR. Tell your Story! • Do you have a compelling story to illustrate your experience with our broken system? Let us know if you want to share it!

27. Any Questions? http://catgovernmentalaffairs.com