Cummins Inc. · NYSE:CMI
Cummins — Merger or Acquisition (February 2022)
6 slides from Cummins's merger presentation, Feb 22, 2022
Slide 1: Cummins to Acquire Meritor
Cummins to Acquire Meritor February 22, 2022
Slide 2: Cautionary Language Regarding Forward-Looking Statements
‘Cautionary Language Regarding Forward-Looking Thispresetaton contains cern forwardooking statements wehin the meaning fhe safe harbor prvsonsof he Pate Secures Ligation Reform Act of 1995 elated othe proposed an Cummins nd Werte. nluing the Benes arate ring ofthe as wes he comp rosucts ana makes, F
Slide 3: Meritor is an Industry Leader in Drivetrain Systems
Meritor is an Industry Leader in Drivetrain Systems Cy2021 Revenue Breakdown By Segment By Geography + A110-yearhistory and strong brand reputation as a ‘global supplier of broad range of powertrain Regn a integrated systems, modules and components to bs OEMs and the aftermarket for commercial vehic
Slide 4: Strong Strategic Rationale for Transaction
Strong Strategic Rationale for Transaction ¥ Adds a global leader in axle and brake technology to CMI's portfolio Right time to pursue combination, with complementary technology and capabilities to address one of the most challenging technology transitions of our age: developing economically viable
Slide 5: Combined Portfolio Creates an Attractive Platform to Deliver Optimized Powertrain Solutions
Combined Portfolio Creates an Attractive Platform to Deliver Optimized Powertrain Solutions ‘Complementary Products Across the Traditional Axles and Brakes are Sustainable Content, Powertrain Agnostic to Propulsion Type oma = Internal Batley ‘Fue Cell io a Combustion Ete “electra —— —_ Engine Vehicl
Slide 6: Summary Transaction Terms
Summary Transaction Terms Purchase Price Offer price of $36.50 in cash per Meritor share, implying a total enterprise value of $3.7Bn including assumed debt and net of acquired cash Imples a FY2022E EBITDA |) transaction multiple of ~5.9x including run-rate synergies (~7.4x excl. synergies) Synergy