Caterpillar Financial Services Corporation Caterpillar International Finance Limited Caterpillar Finance Corporation

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1 DRAFT Caterpillar Financial Services Corporation (A company incorporated in the State of Delaware) Caterpillar International Finance Limited (A company incorporated with limited liability in Ireland with registered number ) Caterpillar Finance Corporation (A company incorporated in Japan) Caterpillar Financial Australia Limited (A company incorporated in Australia registered under Australian Company Number ) Caterpillar Financial Services Limited (A company incorporated in Province of Ontario, Canada) 5,000,000,000 Euro Medium Term Note Programme With maturities of one month or longer unconditionally and irrevocably guaranteed in the case of Notes issued by Caterpillar International Finance Limited, Caterpillar Finance Corporation, Caterpillar Financial Australia Limited and Caterpillar Financial Services Limited by Caterpillar Financial Services Corporation On 17th December, 1997, Caterpillar Financial Services Corporation ("Cat Financial") and Caterpillar International Finance Limited ("CIF") (previously Caterpillar International Finance p.l.c.) established a Euro Medium Term Note Programme (the "Programme") and issued an offering circular on that date describing the Programme. On 15th March, 2013, Caterpillar Financial Australia Limited ("CFA") and Caterpillar Financial Services Limited ("CFS") were added as Issuers to the Programme. This offering circular (the "Offering Circular") supersedes any offering circular with respect to the Programme published prior to the date hereof. Any Notes (as defined below) issued under the Programme on or after the date of this Offering Circular are issued subject to the provisions described herein, but this Offering Circular does not affect the terms of any Notes issued prior to the date hereof. Under the Programme, Cat Financial, CIF, Caterpillar Finance Corporation ("CFC"), CFA and CFS (each an "Issuer" and together the "Issuers") may from time to time issue Euro Medium Term Notes unconditionally and irrevocably guaranteed by Cat Financial (in such capacity, the "Guarantor") in respect of Notes issued by CIF, CFC, CFA and CFS. The Notes will have maturities of one month or longer (or such minimum or maximum maturity as may be allowed or required from time to time by the relevant central bank (or equivalent body however called) or any laws or regulations applicable to the relevant currency) and, subject as set out herein, the maximum aggregate principal amount of all Notes from time to time outstanding will not exceed 5,000,000,000 (or its equivalent in other currencies calculated as described in the Dealer Agreement described herein) subject to increase as described herein. The Notes may be issued in bearer or registered form (respectively, "Bearer Notes" and "Registered Notes" and together the "Notes"). Absent further clarification of relevant U.S. tax law, it is unlikely that Cat Financial and CIF will issue Bearer Notes. The Notes will be issued on a continuing basis to one or more of the initial Dealers specified under "Overview of the Programme" (each a "Dealer" and together the "Dealers"), which expression shall include any person appointed as a Dealer under the Programme from time to time. An investment in Notes issued under the Programme involves certain risks. For a discussion of these, see "Risk Factors". The relevant Issuer may agree with any Dealer and the Fiscal Agent (as defined herein) that Notes may be issued in a form not contemplated by the Terms and Conditions of the Notes herein, in which event a drawdown offering circular to this Offering Circular will be made available which will describe the effect of the agreement reached in relation to such Notes. Application has been made to the Commission de Surveillance du Secteur Financier (the "CSSF"), in its capacity as competent authority under the Luxembourg Act dated 10th July, 2005 on prospectuses for securities, as amended (the "Prospectus Act 2005"), to approve this document as a base prospectus for each of the Issuers. According to the Prospectus Act 2005, the CSSF is not competent to approve prospectuses for the listing of money market instruments having a maturity upon issuance of less than 12 months and complying with the definition of securities. By approving this Prospectus, the CSSF shall give no undertaking as to the economic and financial soundness of the operation or the quality or solvency of each Issuer in accordance with Article 7(7) of the Prospectus Act Application has also been made to the

2 Luxembourg Stock Exchange for Notes issued under the Programme to be admitted to trading on the Bourse de Luxembourg, which is the Luxembourg Stock Exchange's regulated market (the "Regulated Market") and to be listed on the Official List of the Luxembourg Stock Exchange. The requirement to publish a prospectus under the Prospectus Directive (as defined below) only applies to Notes which are to be admitted to trading on a regulated market in the European Economic Area and/or offered to the public in the European Economic Area other than in circumstances where an exemption is available under Article 3.2 of the Prospectus Directive (as implemented in the relevant Member State(s)). References in this Offering Circular to "Exempt Notes" are to Notes for which no prospectus is required to be published under the Prospectus Directive. The CSSF has neither approved nor reviewed information contained in this Offering Circular in connection with Exempt Notes. Notice of the aggregate nominal amount of Notes, interest (if any) payable in respect of Notes, the issue price of Notes and certain other information which is applicable to each Tranche (as defined herein) of Notes will (other than in the case of Exempt Notes, as defined above) be set out in a final terms document (the "Final Terms"), which will be filed with the CSSF. Copies of Final Terms in relation to Notes to be listed on the Luxembourg Stock Exchange will also be published on the website of the Luxembourg Stock Exchange ( In the case of Exempt Notes, notice of the aggregate nominal amount of Notes, interest (if any) payable in respect of Notes, the issue price of Notes and certain other information which is applicable to each Tranche will be set out in a pricing supplement document (the "Pricing Supplement"). References in this Offering Circular to notes being "listed" (and all related references) shall mean that such Notes have been admitted to trading on the Regulated Market and have been listed on the Official List of the Luxembourg Stock Exchange. The Regulated Market is a regulated market for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC ("MiFID")). The Programme provides that Notes may be listed or admitted to trading, as the case may be, on such other or further stock exchange(s) or markets as may be agreed between the relevant Issuer and the relevant Dealer(s). Each Issuer may also issue unlisted Notes and/or Notes not admitted to trading on any market. The relevant Final Terms (as defined below) in respect of the issue of any Notes will specify whether or not such Notes will be listed on the Luxembourg Stock Exchange (or any other stock exchange). The Programme has been rated A by Standard & Poor's Ratings Services ("S&P") and A2 by Moody s Investors Service, Inc. ("Moody's "). Neither S&P nor Moody's is established in the European Union nor registered in accordance with Regulation (EC) No. 1060/2009 (as amended) (the "CRA Regulation"). However, Standard & Poor's Credit Market Services Europe Limited and Moody's Investors Service Ltd., each of which is established in the European Union and registered under the CRA Regulation, has endorsed the global sale ratings assigned by their respective non-eu entities, including Moody's and S&P. Notes issued under the Programme may be rated or unrated by any one or more of the rating agencies referred to above. Where a Tranche of Notes is rated, such rating will be disclosed in the Final Terms (or Pricing Supplement, in the case of Exempt Notes) and will not necessarily be the same as the rating assigned to the Programme by the relevant rating agency. A security rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency. Arranger Barclays Dealers Barclays J.P. Morgan Société Générale Corporate & Investment Banking Offering Circular dated 13th March, ICM:

3 IMPORTANT INFORMATION This Offering Circular comprises five base prospectuses, one for each of the Issuers, in respect of all Notes other than Exempt Notes issued under the Programme for the purposes of Article 5.4 of the Prospectus Directive. "Prospectus Directive" means Directive 2003/71/EC (as amended, including by Directive 2010/73/EU), and includes any relevant implementing measure in a relevant Member State of the European Economic Area. The Issuers accept responsibility for the information contained in this Offering Circular and the Final Terms for each Tranche of Notes issued under the Programme. To the best of the knowledge and belief of the Issuers (each having taken all reasonable care to ensure that such is the case), the information contained in this Offering Circular is in accordance with the facts and does not omit anything likely to affect the import of such information. This Offering Circular is to be read in conjunction with all documents which are deemed to be incorporated herein by reference (see "Documents Incorporated by Reference"). This Offering Circular shall be read and construed on the basis that such documents are incorporated by reference and form part of this Offering Circular. No person is or has been authorised to give any information or to make any representation other than those contained in this Offering Circular in connection with the issue or sale of the Notes or the giving of the Guarantee (as defined in Condition 3(b)) and, if given or made, such information or representation must not be relied upon as having been authorised by any of the Issuers or any of the Dealers or the Arranger (as defined in "Overview of the Programme"). Neither the delivery of this Offering Circular nor any sale made in connection herewith shall, under any circumstances, create any implication that the information contained herein concerning the Issuers is correct at any time subsequent to the date hereof or that any other information supplied in connection with the Programme is correct as of any time subsequent to the date on which it is supplied or, if different, the date indicated in the document containing the same. Neither the Notes nor the Guarantee have been or will be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any U.S. state securities laws, and the Notes may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons as defined in Regulation S under the Securities Act ("Regulation S") unless an exemption from the registration requirements of the Securities Act is available and in accordance with all applicable securities laws of any state of the United States and any other jurisdiction. The Notes have also not been, and will not be, qualified for sale under the securities laws of any province or territory of Canada and the Notes may not be offered, sold or delivered, directly or indirectly, in Canada or to, or for the benefit of any resident of Canada unless in accordance with all applicable Canadian provincial and/or territorial securities laws, or an available exemption therefrom, and, in the case of Notes issued by CFS, with the written permission of CFS. See "Form of the Notes" for a description of the manner in which Notes will be issued. The Notes are subject to certain restrictions on transfers (see "Subscription and Sale"). The Bearer Notes are subject to U.S. tax law requirements and may not be offered, sold or delivered within the United States or its possessions or to United States persons, except in certain transactions permitted by U.S. Treasury regulations. Terms used in this paragraph have the meanings given to them by the U.S. Internal Revenue Code of 1986 and the regulations promulgated thereunder. This Offering Circular does not constitute an offer to sell or the solicitation of an offer to buy any Notes in any jurisdiction to any person to whom it is unlawful to make the offer or solicitation in such jurisdiction. The distribution of this Offering Circular and the offer or sale of Notes may be restricted by law in certain jurisdictions. The Issuers, the Arranger and the Dealers do not represent that this Offering Circular may be lawfully distributed, or that any Notes may be lawfully offered, in compliance with any applicable registration or other requirements in any such jurisdiction, or pursuant to an exemption available thereunder, or assume any responsibility for facilitating any such distribution or offering. In particular, no action has been taken by the Issuers, the Arranger or the Dealers which is intended to permit a public offering of any Notes or distribution of this document in any jurisdiction where action for that purpose is required. Accordingly, no Notes may be offered or sold, directly or indirectly, and neither this Offering Circular nor any advertisement or other offering material may be 3

4 IMPORTANT INFORMATION distributed or published in any jurisdiction, except under circumstances that will result in compliance with any applicable laws and regulations. Persons into whose possession this Offering Circular or any Notes may come must inform themselves about, and observe, any such restrictions on the distribution of this Offering Circular and the offering and sale of Notes. In particular, there are restrictions on the distribution of this Offering Circular and the offer or sale of Notes in the United States, the European Economic Area (including the United Kingdom, Ireland and France), the Russian Federation, Hong Kong, the People's Republic of China, Singapore, Australia, Japan and Canada (see "Subscription and Sale"). This Offering Circular has been prepared on a basis that would permit an offer of Notes with a denomination of less than 100,000 (or its equivalent in any other currency) only in circumstances where there is an exemption from the obligation under the Prospectus Directive to publish a prospectus. As a result, any offer of Notes in any Member State of the European Economic Area which has implemented the Prospectus Directive (each, a "Relevant Member State") must be made pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the requirement to publish a prospectus for offers of Notes. Accordingly, any person making or intending to make an offer of Notes in that Relevant Member State may only do so in circumstances in which no obligation arises for any Issuer or any Dealer to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. None of the Issuers or Dealers has authorised, nor do any of them authorise, the making of any offer of Notes in circumstances in which an obligation arises for any Issuer or any Dealer to publish or supplement a prospectus for such offer. The Notes may not be a suitable investment for all investors. Each potential investor in the Notes must determine the suitability of that investment in light of its own circumstances. In particular, each potential investor may wish to consider, either on its own or with the help of its financial and other professional advisers, whether it: (i) (ii) (iii) (iv) (v) has sufficient knowledge and experience to make a meaningful evaluation of the Notes, the merits and risks of investing in the Notes and the information contained or incorporated by reference in this Offering Circular or any applicable supplement; has access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its particular financial situation, an investment in the Notes and the impact the Notes will have on its overall investment portfolio; has sufficient financial resources and liquidity to bear all of the risks of an investment in the Notes, including Notes with principal or interest payable in one or more currencies, or where the currency for principal or interest payments is different from the potential investor's currency; understands thoroughly the terms of the Notes and is familiar with the behaviour of any relevant indices and financial markets; and is able to evaluate possible scenarios for economic, interest rate and other factors that may affect its investment and its ability to bear the applicable risks. Legal investment considerations may restrict certain investments. The investment activities of certain investors are subject to legal investment laws and regulations, or review or regulation by certain authorities. Each potential investor should consult its legal advisers to determine whether and to what extent (1) Notes are legal investments for it, (2) Notes can be used as collateral for various types of borrowing and (3) other restrictions apply to its purchase or pledge of any Notes. Financial institutions should consult their legal advisers or the appropriate regulators to determine the appropriate treatment of Notes under any applicable risk-based capital or similar rules. The Notes issued by CFC are not, as part of the distribution by the Dealers at any time, to be offered or sold to, or for the benefit of, any person other than (i) a beneficial owner that is, for Japanese tax 4

5 IMPORTANT INFORMATION purposes, neither (x) an individual resident of Japan or a Japanese corporation, nor (y) an individual non-resident of Japan or a non-japanese corporation that in either case is a person having a special relationship with CFC as described in Article 6, paragraph (4) of the Act on Special Measures Concerning Taxation of Japan (Act No. 26 of 1957) (as amended) (the "Act on Special Measures Concerning Taxation") (a "specially-related person of CFC"), or (ii) a Japanese financial institution, as designated in Article paragraph (29) of the Cabinet Order (Cabinet Order No. 43 of 1957) (as amended) (the "Cabinet Order"). BY SUBSCRIBING FOR THE NOTES ISSUED BY CFC, AN INVESTOR WILL BE DEEMED TO HAVE REPRESENTED THAT IT IS A PERSON WHO FALLS INTO THE CATEGORY OF (i) OR (ii) ABOVE. In addition, interest payment on the Notes issued by CFC will be subject to Japanese withholding tax unless it is established that the Notes issued by CFC are held by or for the account of a beneficial owner that is (i) for Japanese tax purposes, neither (x) an individual resident of Japan or a Japanese corporation, nor (y) an individual non-resident of Japan or a non-japanese corporation that in either case is a specially-related person of CFC or (ii) a Japanese designated financial institution, as described in Article 6, paragraph (9) of the Act on Special Measures Concerning Taxation, which complies with the requirement for tax exemption under that paragraph or (with respect to interest to be payable on or after 1st January, 2016) (iii) a public corporation, a financial institution or a financial instruments business operator, etc., described in Article 3-3, Paragraph 6 of the Special Taxation Measures Law which complies with the requirement for tax exemption under that paragraph. For withholding tax with respect to the Notes issued by CFC due and payable in Japan during the period beginning on 1st January, 2013 and ending on 31st December, 2037, a special additional withholding tax is imposed. See "Taxation Japan". CFC will not, under this Programme, issue "Taxable Linked Securities", being securities of which the amount of interest is to be calculated by reference to certain indexes (as prescribed by the Cabinet Order under Article 6, paragraph (4) of the Act on Special Measures Concerning Taxation) relating to CFC or a specially-related person of CFC. The Arranger and the Dealers have not separately verified the information contained in this Offering Circular. Neither the Arranger nor any of the Dealers makes any representation, express or implied, or accepts any responsibility or liability, with respect to the accuracy or completeness of any of the information contained or incorporated by reference in this Offering Circular or any other information provided by the Issuers in connection with the Programme. Neither this Offering Circular nor any other information supplied in connection with the Programme or any Notes (a) is intended to provide the basis of any credit or other evaluation or (b) should be considered as a recommendation by any Issuer, the Arranger or the Dealers that any recipient of this Offering Circular or any other information supplied in connection with the Programme or any Notes should purchase any Notes. Each potential purchaser of Notes should determine for itself the relevance of the information contained in this Offering Circular or any other information supplied in connection with the Programme or any Notes and its purchase of Notes should be based upon such investigation as it deems necessary. None of the Dealers or the Arranger undertakes to review the financial condition or affairs of any Issuer during the life of the arrangements contemplated by this Offering Circular, or to advise any investor or potential investor in the Notes of any information coming to the attention of any of the Arranger or the Dealers. Neither the Arranger nor any of the Dealers accepts any liability in relation to the information contained or incorporated by reference in this Offering Circular or any other information provided by the Issuers in connection with the Programme. Certain of the Dealers have engaged, and may in the future engage, in investment banking and/or commercial banking transactions and may perform services for the Issuers and their respective affiliates in the ordinary course of business. In connection with the issue of any Tranche of Notes, the Dealer or Dealers (if any) appointed as the Stabilisation Manager(s) (or persons acting on behalf of any Stabilisation Manager(s)) may, outside Australia and on a market operated outside Australia, over-allot Notes or effect transactions with a view to supporting the market price of the Notes at a level higher than that which might otherwise 5

6 IMPORTANT INFORMATION prevail. However, there is no assurance that the Stabilisation Manager(s) (or persons acting on behalf of any Stabilisation Manager(s)) will undertake stabilisation action. Any stabilisation action may begin on or after the date on which adequate public disclosure of the terms of the offer of the relevant Tranche of Notes is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the issue date of the relevant Tranche of Notes and 60 days after the date of the allotment of the relevant Tranche of Notes. Any stabilisation action or over-allotment must be conducted by the relevant Stabilisation Manager(s) (or persons acting on behalf of any Stabilisation Manager(s)) in accordance with all applicable laws and rules. According to the Prospectus Act 2005, the CSSF is not competent to approve prospectuses for the listing of money market instruments having a maturity upon issuance of less than 12 months and complying with the definition of securities. PRESENTATION OF INFORMATION In this Offering Circular, all references to: (i) (ii) (iii) (iv) (v) (vi) (vii) "U.S. dollars", "U.S.$" and "$" are to United States dollars; "Yen" and " " are to the lawful currency of Japan; "Renminbi" and "CNY" are to the lawful currency of the People's Republic of China (the "PRC"), excluding the Hong Kong Special Administrative Region ("Hong Kong"), the Macau Special Administrative Region and Taiwan; "Sterling" and " " are to pounds sterling; "euro" and " " are to the currency introduced at the start of the third stage of European economic and monetary union pursuant to the Treaty on the Functioning of the European Union, as amended; "Australian dollars", "AUD" and "A$" are to the currency of Australia; and "Canadian dollars", "CAD" and "C$" are to the currency of Canada. 6

7 TABLE OF CONTENTS RISK FACTORS... 8 OVERVIEW OF THE PROGRAMME DOCUMENTS INCORPORATED BY REFERENCE FORM OF THE NOTES FORM OF FINAL TERMS TERMS AND CONDITIONS OF THE NOTES USE OF PROCEEDS CATERPILLAR FINANCIAL SERVICES CORPORATION CATERPILLAR INTERNATIONAL FINANCE LIMITED CATERPILLAR FINANCE CORPORATION CATERPILLAR FINANCIAL AUSTRALIA LIMITED CATERPILLAR FINANCIAL SERVICES LIMITED TAXATION SUBSCRIPTION AND SALE GENERAL INFORMATION

8 RISK FACTORS In purchasing Notes, investors assume the risk that each Issuer and the Guarantor may become insolvent or otherwise be unable to make all payments due in respect of the Notes. There is a wide range of factors which individually or together could result in each Issuer and the Guarantor becoming unable to make all payments due in respect of the Notes. It is not possible to identify all such factors or to determine which factors are most likely to occur, as each Issuer and the Guarantor may not be aware of all relevant factors and certain factors which they currently deem not to be material may become material as a result of the occurrence of events outside each Issuer's and the Guarantor's control. Each Issuer and the Guarantor have identified in this Offering Circular a number of factors which could materially adversely affect their businesses and ability to make payments due under the Notes. In addition, factors which are material for the purpose of assessing the market risks associated with Notes issued under the Programme are also described below. Prospective investors should also read the detailed information set out elsewhere in this Offering Circular and reach their own views prior to making any investment decision. References in these Risk Factors to "Issuers" shall be to CIF, CFC, CFA, CFS and Cat Financial and, unless the context otherwise requires, references to "Cat Financial" shall be deemed to be references to it in its capacity both as an issuer of Notes under the Programme and as the Guarantor. References in these Risk Factors to "Financing Issuers" shall be to CFC, CFA, CFS and Cat Financial only. Unless the context otherwise requires, for purposes of these Risk Factors, "Cat Financial" shall mean Caterpillar Financial Services Corporation and its consolidated subsidiaries. In addition, unless the context otherwise requires, for purposes of these Risk Factors, "Caterpillar" shall mean Caterpillar Inc. and its subsidiaries other than Cat Financial. Words and expressions defined in "Form of the Notes" and "Terms and Conditions of the Notes" below shall have the same meanings in this section. Factors that may affect the Issuers' ability to fulfil their respective obligations under Notes issued under the Programme Disruptions or volatility in global financial markets could adversely impact the industries and markets in which the Issuers serve and operate. Global economic conditions may cause volatility and disruptions in the capital and credit markets. Should global economic conditions deteriorate or access to credit markets be reduced, the Issuers could experience reduced levels of liquidity and increased credit spreads in the markets they serve. Continuing to meet the Financing Issuers' cash requirements over the long-term could require substantial liquidity and access to sources of funds, including capital and credit markets. The Issuers have continued to maintain access to key global medium-term note and commercial paper markets, but there can be no assurance that such markets will continue to represent a reliable source of financing. If global economic conditions were to deteriorate, the Issuers could face materially higher financing costs, become unable to access adequate funding to operate and grow their respective businesses and/or meet their respective debt service obligations as they mature, and they could be required to draw upon contractually committed lending agreements primarily provided by global banks and/or seek other funding sources. However, under extreme market conditions, there can be no assurance that such agreements and other funding sources would be available or sufficient. Any of these events could negatively impact their respective businesses, results of operations and financial condition ICM:

9 The extent of any impact on the Issuers' ability to meet their respective funding or liquidity needs would depend on several factors, including their respective operating cash flows, the duration of any market disruptions, changes in counterparty credit risk, the impact of government intervention in financial markets, including the effects of any programmes or legislation designed to increase or restrict liquidity for certain areas of the market, general credit conditions, the volatility of equity and debt markets, any credit ratings and the credit capacity of the Issuers and cost of financing, and other general economic and business conditions. Market disruption and volatility may also lead to a number of other risks in connection with these events, including but not limited to: (i) (ii) (iii) (iv) market developments that may affect customer confidence levels and may cause declines in the demand for financing and adverse changes in payment patterns, causing increases in delinquencies and default rates, which could impact the Financing Issuers' write-offs and provision for credit losses; the process the Financing Issuers use to estimate losses inherent in their respective credit exposure requires a high degree of management's judgement regarding numerous subjective, qualitative factors, including forecasts of economic conditions and how economic predictors might impair the ability of their borrowers to repay their loans. If financial market disruption and volatility is experienced, the accuracy of these judgements may be impacted; the Issuers' ability to engage in routine funding transactions or borrow from other financial institutions on acceptable terms or at all could be adversely affected by disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations; and since the Issuers' funding counterparties are financial institutions, their ability to perform in accordance with any of the underlying agreements could be adversely affected by market volatility and/or disruptions in the equity and credit markets. Changes in government monetary or fiscal policies may negatively impact the Issuers' results. Most countries have established central banks to regulate monetary systems and influence economic activities, generally by adjusting interest rates. Interest rate changes affect overall economic growth, which in turn affects Caterpillar's sales and the financing activities of the Financing Issuers. Interest rate changes can also affect customers' ability to finance machine purchases, can change the optimal time to keep machines in a fleet and can impact the ability of Caterpillar's suppliers to finance the production of parts and components necessary to manufacture and support Caterpillar products. An increase in interest rates could result in lower sales of Caterpillar's products and adversely impact the business, results of operations and financial condition of the Issuers. Central banks and other policy arms of many countries may take actions to vary the amount of liquidity and credit available in an economy. Changes in liquidity and credit policies could impact the customers and markets served by the Issuers or their respective suppliers, which could adversely impact their businesses, results of operations and financial condition. Government policies on taxes and spending also affect the Issuers' business. Throughout the world, government spending finances a significant portion of infrastructure development, such as highways, airports, sewer and water systems, and dams. Tax regulations determine depreciation lives and the amount of money users of Caterpillar's products can retain, both of which influence investment decisions. Unfavourable developments, such as declines in government revenues, decisions to reduce public spending or increases in taxes, could negatively impact the Issuers' respective results. The Issuers' operations are exposed to political and economic risks, commercial instability and events beyond their control in the countries in which they operate. The Issuers' operations are dependent upon products manufactured, purchased, sold and financed in the U.S. and internationally, including in countries with political and economic instability. In some cases, these countries have greater political and economic volatility and greater vulnerability to infrastructure and labour disruptions than in the Issuers' other markets. Operating and seeking to ICM:

10 expand business in a number of different regions and countries exposes them to a number of risks, including: (i) (ii) (iii) (iv) (v) (vi) multiple and potentially conflicting legal and regulatory requirements that are subject to change; increased exposure to currency fluctuations and imposition of currency restrictions, restrictions on repatriation of earnings or other similar restraints; difficulty of enforcing agreements and collecting receivables through foreign legal systems; difficulty in staffing and managing (including ensuring compliance with internal policies and controls) geographically widespread operations and the application of foreign labour regulations; natural disasters, embargoes, catastrophic events and national and international conflict, including acts of terrorism; and political and economic instability or civil unrest that may severely disrupt economic activity in affected countries, particularly in emerging markets. The occurrence of one or more of these events may negatively impact the Issuers' respective business, results of operations and financial condition. Failure to maintain the credit ratings relating to the Issuers' debt (including, without limitation, the Notes) would increase their cost of borrowing and could adversely affect their access to the capital markets. Caterpillar's and the Issuers' costs of borrowing and ability to access the capital markets are affected not only by market conditions but also by the short-term and long-term debt ratings assigned to Caterpillar's and the Issuers' debt (including, without limitation, the Notes) by the major credit rating agencies. These ratings are based, in significant part, on each of Caterpillar's and the Issuer's performance as measured by financial metrics such as interest coverage and leverage ratios, as well as transparency with rating agencies and timeliness of financial reporting. There can be no assurance that Caterpillar or the Issuers will be able to maintain their credit ratings. Although Caterpillar and Cat Financial have committed credit facilities to provide liquidity, any downgrades of our credit ratings could increase our cost of borrowing and could adversely affect their cost of funds, liquidity, competitive position and access to the capital markets, including restricting, in whole or in part, their access to the commercial paper market. There can be no assurance that the commercial paper market will continue to be a reliable source of short-term financing for the Issuers or an available source of short-term financing for Caterpillar. An inability of the Issuers to access the capital markets could have a material adverse effect on the Issuers' respective cash flows, results of operations and financial condition. In general, European regulated investors are restricted under Regulation (EC) No. 1060/2009 (as amended) (the "CRA Regulation") from using credit ratings for regulatory purposes, unless such ratings are issued by a credit rating agency established in the EU and registered under the CRA Regulation (and such registration has not been withdrawn or suspended), subject to transitional provisions that apply in certain circumstances whilst the registration application is pending. Such general restriction will also apply in the case of credit ratings issued by non-eu credit rating agencies, unless the relevant credit ratings are endorsed by an EU-registered credit rating agency or the relevant non-eu rating agency is certified in accordance with the CRA Regulation (and such endorsement action or certification, as the case may be, has not been withdrawn or suspended). Certain information with respect to the credit rating agencies and ratings is set out on the cover of this Offering Circular. The list of registered and certified rating agencies published by the European Securities and Markets Authority ("ESMA") on its website in accordance with the CRA Regulation is not conclusive evidence of the status of the relevant rating agency included in such list, as there may be delays between certain supervisory measures being taken against a relevant rating agency and the publication of the updated ESMA list ICM:

11 Credit ratings are for distribution only to a person (a) who is not a "retail client" within the meaning of section 761G of the Corporations Act 2001 of Australia ("Australian Corporations Act") and is also a sophisticated investor, professional investor or other investor in respect of whom disclosure is not required under Parts 6D.2 or 7.9 of the Australian Corporations Act, and (b) who is otherwise permitted to receive credit ratings in accordance with any applicable law in any jurisdiction in which the person may be located. Changes in interest rates, foreign currency exchange rates or market liquidity conditions could adversely affect the Issuers' respective earnings and/or cash flows. Changes in interest rates, foreign currency exchange rates and market liquidity conditions could have a material adverse effect on the Issuers' respective earnings and cash flows. Because Cat Financial's financial results are reported in U.S. dollars, but its operations are conducted internationally, currency exchange rates can have a significant impact on Cat Financial's results. Additionally, because a significant number of the Financing Issuers' loans are made at fixed interest rates, the business of the Financing Issuers is subject to fluctuations in interest rates. Changes in market interest rates may influence the Issuers' financing costs, returns on financial investments and the valuation of derivative contracts and could reduce their respective earnings and/or cash flows. In addition, since the Financing Issuers make a significant number of loans in currencies other than the U.S. dollar, fluctuations in foreign currency exchange rates could also reduce the Issuers' respective earnings and cash flows. Cat Financial also relies on a number of diversified global debt capital markets and funding programmes to provide liquidity for its global operations, including commercial paper, medium-term notes, retail notes, variable denomination floating rate demand notes and bank loans. Significant changes in market liquidity conditions could impact Cat Financial's access to funding and the associated funding cost and reduce its earnings and cash flows. Although the Issuers manage interest rate, foreign currency exchange rate and market liquidity risks with a variety of techniques, including a match funding programme, the selective use of derivatives and a broadly diversified funding programme, there can be no assurance that fluctuations in interest rates, currency exchange rates and market liquidity conditions will not have a material adverse effect on the Issuers' respective earnings and cash flows. If any of the variety of instruments and strategies an Issuer uses to hedge its respective exposure to these various types of risk are ineffective, the relevant Issuer may incur losses. Caterpillar's business is significantly influenced by the credit risk associated with its customers and an increase in delinquencies, repossessions or net losses could adversely affect the Financing Issuers' results. The business of the Financing Issuers is significantly influenced by the credit risk associated with their respective customers. The creditworthiness of each customer and the rate of delinquencies, repossessions and net losses on customer obligations are directly impacted by several factors, including, but not limited to, relevant industry and economic conditions and the availability of capital. Any increase in delinquencies, repossessions and net losses on customer obligations could have a material adverse effect on their respective earnings and cash flows. In addition, although the Financing Issuers evaluate and adjust their allowance for credit losses related to past due and non-performing receivables on a regular basis, adverse economic conditions or other factors that might cause deterioration of the financial health of the Financing Issuers' respective customers could change the timing and level of payments received and necessitate an increase in the Financing Issuers' estimated losses, which could also have a material adverse effect on their respective earnings and cash flows. A decrease in the residual value of the equipment that a Financing Issuer finances could adversely affect its results. Declines in the residual value of equipment financed by a Financing Issuer may reduce its respective earnings. The residual value of leased equipment is determined based on its estimated end-of-term market value at the time of the expiration of the lease term. Each Financing Issuer estimates the residual value of leased equipment at the inception of the lease based on a number of factors, ICM:

12 including historical wholesale market sales prices, past remarketing experience and any known significant market/product trends. If estimated end-of-term market values significantly decline due to economic factors, obsolescence or other adverse circumstances, the relevant Financing Issuer may not realise such residual value, which could reduce such Financing Issuer's earnings, either through an increase in depreciation expense or a decrease in finance revenue. The success of the Issuers' businesses depends upon the demand for Caterpillar's products. The primary businesses of each of the Financing Issuers is to provide retail and wholesale financing alternatives for Caterpillar products to customers and Caterpillar dealers and is therefore largely dependent upon the demand for Caterpillar's products and customers' willingness to enter into financing or leasing agreements which may be negatively affected by challenging global economic conditions. As a result, a significant or prolonged decrease in demand could have a material adverse effect on the Financing Issuers' business, financial condition, results of operations and cash flows. The primary activity of CIF is to provide financing and factoring services to Cat Financial through its subsidiary, Caterpillar International Finance Luxembourg S.a.r.l., to Cat Financial and Caterpillar subsidiaries in Europe, the Middle East and Russia. The demand for Caterpillar's products and the Financing Issuers' products and services is influenced by a number of factors, including: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) general world economic conditions and the level of mining, construction and manufacturing activity; changes and uncertainties in the monetary and fiscal policies of various governmental and regulatory entities; fluctuations in demand and prices for certain commodities; fluctuations in currency exchange rates and interest rates; political, economic and legislative changes; Caterpillar's ability to produce products that meet customers' needs; Caterpillar's ability to maintain key dealer relationships; the ability of Caterpillar dealers to sell Caterpillar products and their practices regarding inventory control; and changes in pricing policies by Caterpillar or its competitors. Any significant adverse changes to these factors could negatively impact the Issuers' results. Changes in the marketing, operational or administrative support that the Issuers receive from Caterpillar could adversely affect their respective results. The Financing Issuers participate in certain marketing programmes sponsored by Caterpillar and/or Caterpillar dealers that allow them to offer financing to customers at interest rates that are below market rates. These marketing programmes provide the Financing Issuers with a significant competitive advantage in financing Caterpillar products. Any change in these marketing programmes or reduction in the Financing Issuers' respective ability to offer competitively priced financing to customers could reduce the percentage of Caterpillar products financed by the Financing Issuers, which could have a material adverse effect on their respective business, financial condition, results of operations and cash flows. Caterpillar also provides the Issuers with other types of operational and administrative support, such as the administration of employee benefit plans, which is integral to the conduct of their respective business. Any changes in the level of support from Caterpillar could also negatively impact their respective results ICM:

13 The success of the Financing Issuers' respective businesses depends on their ability to develop, produce and market quality products and services that meet their customers' needs. The Financing Issuers operate in a highly competitive environment, with financing for users of Caterpillar equipment available through a variety of sources, principally commercial banks and finance and leasing companies. Increasing competition may adversely affect the business of the Financing Issuers if they are unable to match the products and services of their competitors. Also, as noted above, any changes to the marketing programmes sponsored by Caterpillar and/or Caterpillar dealers, which allow the Financing Issuers to offer financing to customers at interest rates that are below market rates, could have a materially adverse effect on the Financing Issuers' respective businesses. New regulations or changes in financial services regulation could adversely impact the Financing Issuers' results of operations and financial condition. The operations of the Financing Issuers are highly regulated by governmental authorities in the locations where they operate, which can impose significant additional costs and/or restrictions on their respective businesses. In the United States, for example, Cat Financial's operations are subject to the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank"). Dodd-Frank was signed into law in July 2010 and is a comprehensive financial reform act that includes extensive provisions regulating the financial services industry. Certain aspects of Dodd-Frank remain to be implemented under the rulemaking and regulatory authority of the United States Securities and Exchange Commission (the "Commission"), the Commodity Futures Trading Commission and federal banking regulators. As such, Cat Financial has become and could continue to become subject to additional regulatory costs both directly and indirectly, through increased costs of doing business with market intermediaries that are now subject to extensive regulation pursuant to Dodd-Frank or other regulatory reforms. For example, derivatives dealers may seek to pass to Cat Financial the cost of any margin, capital or other regulatory requirements that they are subject to under Dodd-Frank or other regulatory reforms. As the regulatory regime is still developing and the rulemaking process has been progressing slowly, the ultimate costs and impact of Dodd-Frank and other regulatory initiatives on Cat Financial's business remains uncertain and may not be known for years. However, such costs could be significant and could have an adverse effect on Cat Financial's results of operations and financial condition. Additional regulations in the United States or internationally impacting the financial services industry could also add significant costs or operational constraints that might have an adverse effect on the Financing Issuers results of operations and financial condition. Cat Financial s global operations are subject to extensive trade and anti-corruption laws and regulations Due to the international scope of Cat Financial's operations, Cat Financial is subject to a complex system of laws and regulations, including U.S. regulations issued by the Office of Foreign Assets Control. Any alleged or actual violations may subject Cat Financial to government scrutiny, investigation and civil and criminal penalties, and may limit Cat Financial's ability to provide financing outside the United States and/or potentially require Cat Financial to divest portions of its existing portfolio under certain circumstances. Furthermore, embargoes and sanctions imposed by the U.S. and other governments prohibiting providing financing to specific persons or countries exposes Cat Financial to criminal and civil sanctions. Cat Financial cannot predict the nature, scope or effect of future regulatory requirements to which its operations might be subject or the manner in which existing laws might be administered or interpreted. In addition, the U.S. Foreign Corrupt Practices Act and similar anti-corruption laws of other countries generally prohibit companies and their intermediaries from making improper payments or providing anything of value to improperly influence foreign government officials for the purpose of obtaining or retaining business, or obtaining an unfair advantage. Recent years have seen a substantial increase in the global enforcement of anti-corruption laws. Cat Financial s continued operation and expansion outside the United States, including in developing countries, could increase the risk of such violations. Notwithstanding the compliance programs applicable to the Financing Issuers' international operations, violations of these laws may result in severe criminal or civil sanctions, ICM: