Cummins India Limited · NSE:CUMMINSIND
Cummins India — Shareholder Meeting (August 2021)
25 slides from Cummins India's shareholder meeting presentation, Aug 12, 2021
Slide 1: Intimation of presentation at 60th Annual General Meeting
Ref: STEX/SECT/2021 August 12, 2021 The Relationship Manager, National Stock Exchange of India Limited DCS-CRD (NSE), BSE Limited (BSE), Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Dalal Street, Fort, Bandra – Kurla Complex, Mumbai 400 001 Bandra (East), Mumbai 400 0
Slide 2: Cummins India Limited 60th Annual General Meeting
Cummins India Limited (CIL) - 60th Annual General Meeting Ashwath Ram, Managing Director, Cummins India Limited August 12, 2021 Public
Slide 3: Agenda
AGENDA 01 Cummins India Overview 02 Cummins Inc. - Key Highlights and Financial Performance 03 Impact of COVID-19. Our Response. 04 CIL- Key Highlights and Financial Performance 05 The Future. Our Growth Strategy 2
Slide 4: What We Want to Accomplish
WHAT WE WANT TO ACCOMPLISH Public HOW WE WILL DO IT INTEGRITY Doing what you say you will do and doing what is right DIVERSITY & INCLUSION Valuing and including our differences in decision making is our competitive advantage CARING Demonstrating awareness and consideration for the wellbeing of other
Slide 5: Cummins India Limited Overview
Cummins India Limited Overview 4
Slide 6: Cummins India Limited (CIL) - An Overview
Cummins India Limited (CIL)- An Overview Amongst India’s largest exporters of engineering products Manufactures a variety of engines operating on diesel, natural gas and dual fuel Provides innovative solutions across Industrial Business, Power-generation and Aftermarket Country-wide 3,200+ Com
Slide 7: Cummins Inc. Key Highlights and Financial Performance
Cummins Inc. – Key Highlights and Financial Performance 6
Slide 8: Cummins Inc. CY 2020 Highlights
Cummins Inc. CY 2020 Highlights Our path to carbon neutrality includes powering Building more prosperous communities the world’s first hydrogen fuel cell passenger train Grants to communities- $22 Mn(record amount); including $2.5 Mn in pandemic-related relief Launched Cummins Water Works Cumm
Slide 9: Financial Performance CMI Q2 2021
Financial Performance CMI Q2 2021 Revenue: 6.1 Billion Up 59% from Q2 2020 EBITDA*: $974 million, 15.9 percent of sales Compared to $549 Million, 14.3 percent of sales, in Q2’20 8
Slide 10: Impact of COVID-19. Our Response
Impact of COVID-19. Our Response 9
Slide 11: Impact of COVID-19
Impact of COVID-19 Severe health impact Nationwide lockdowns Global travel restrictions Factory shutdowns Temporary decline in customer demand Supply chain disruptions 10
Slide 12: Staying strong, agile and resilient
Staying strong, agile and resilient HEALTH AND SAFETY of our employees is of paramount importance We will continue to SERVE OUR CUSTOMERS who provide critical services to the economy Our company CONTINUES INTO THE FUTURE; we remain committed to bring best-in-class technologies to serve our customers
Slide 13: COVID-19 Vaccination drive
Cummins India* COVID-19 Vaccination drive 19,000+ employees and dependents vaccinations till date across our plants and offices 3 rounds of vaccination drives so far (and counting!) 300+ on-ground volunteers for support Committed to living our core value of CARING * Covers all Cummins India gr
Slide 14: Our Community efforts
Our Community efforts- Helping our society fight the COVID–19 pandemic through the Cummins India Foundation Donated life-saving #100+ Grant appeals 25,000+ 3 Ply masks 5,000+ Virus Testing medical equipment approved - COVID relief donated to hospitals kits donated to local to hospitals in collaborat
Slide 15: Cummins India Limited Key Highlights and Financial Performance
Cummins India Limited- Key Highlights and Financial Performance 14
Slide 16: Cummins India Limited FY 2020-21 Highlights
Cummins India Limited FY 2020-21 Highlights Delivering value to stakeholders New-generation, electronic 4 and 6-cylinder engines for Construction Equipment Vehicle (CEV) applications Product Launches- Compact 50 kVA genset for a special purpose Defense application; PSO600 controller for Low HP r
Slide 17: Financial Performance CIL FY 2020-21
Financial Performance CIL FY 2020-21 Revenue: ₹ 4,256 Cr Profit before Interest Tax: ₹ 824 Cr Cash generated from operations: ₹ 788 Cr Dividend: 750% 16 16
Slide 18: CIL Revenue & PBIT Trend
CIL Revenue & PBIT Trend ₹ Cr Revenue CAGR: (12.2)% 5526 5062 4256 5,526 5,062 4,256 1,047 799 824 FY 2019 FY 2020 FY 2021 Revenue PBIT Sales: • FY 2019 registered record high sales of ₹ 5,526 Cr. • FY 2020 and FY 2021 significantly impacted due to pandemic PBIT : 3.5% PBIT expansion vs. last year a
Slide 19: Domestic vs Exports Trend
Domestic vs Exports Trend Domestic CAGR Exports CAGR ₹ Cr (10.5)% (16.5)% 30% 26% 30% 26% 32% 32% 27% CAGR: (12.2)% 27% 70% 74% 73% 68% 68% 70% 74% 73% 18
Slide 20: Dividend Trend
Dividend Trend ₹ Cr 1000% 850% 500 800% 700% 750% 400 600% 300 400% 471 200 416 388 200% 100 0% - -200% FY 2019 FY 2020 FY 2021 * Excluding Dividend Distribution tax FY FY 2019 FY 2020 FY 2021 Dividend Payout% 79% 68% 67% (as a % of Profit after Tax) 19
Slide 21: The Future. Our Growth Strategy
The Future. Our Growth Strategy 20
Slide 22: Key macroeconomic megatrends
Key macroeconomic megatrends Impetus on infrastructure growth Leapfrog in digitalization and automation Stall in infrastructure spending Faster e-commerce growth, due to COVID giving rise to pent- Artificial Intelligence and Machine up demand Learning, Industry 4.0 Combating climate change Red
Slide 23: CIL Growth Strategy
CIL Growth Strategy Profitable growth OEM Beyond Rail Alternate Exports After-market penetration engines electrification and Beyond Hydrogen Renewal Rail (EBU, PSBU engine & electrification (incl. fuel Sources Supply chain) components cells) 100 bps Cost Material Footprint y-o-y margin ↑ Value selli
Slide 24: The Future - The opportunities are immense!
The Future- The opportunities are immense! Consolidation of global supply chain Clean Diesel around the world Greater penetration in aftermarket India becoming a greater export hub Alternate fuels and Renewables Leveraging capacities in supply chain 23
Slide 25: Well positioned to capitalize on opportunities. Emerge Stronger
#We are well positioned to Capitalize on opportunities. Emerge Stronger Harnessing 60-year legacy Right Strong Our core Stable the global of innovation and investments financial strengths leadership expertise dependability made position team 24