Cummins India Limited · NSE:CUMMINSIND
Cummins India — CIL Analysts Meet Feb 2012
35 slides from Cummins India's investor presentation, Feb 22, 2012
Slide 1: Cummins India Ltd. – Update
Cummins India Ltd. – Update 22nd February, 2012
Slide 2: Cummins in India - Since 1962
Cummins in India - Since 1962 CES/ CBS/ Others Cummins Exhaust CTT(I) India Ltd ReCon CEIL Kirloskar Fleetguard Tata Nelson Divestment Cummins Cummins Cummins Filters Cummins Engg India Ltd. Technologies Ltd. Ltd. Ltd. Ltd. India Ltd 1962 1967 1987 1989 1993 1994 1997 1998 2000 2002 2003 2008 2010 2
Slide 3: Cummins in India
Cummins in India 8 companies (4 JVs) Over 11,000 employees - New Plants - Factory $2.3B 2011 sales Dewas, Pithampur New Delhi CTIL- CTT (DTA, SEZ) Valvoline Cummins CTIL- Recon (SEZ) Jamshedpur Daman Tata Cummins Ltd CIL (PGBU) Fleetguard Filters Pune Pune/Mumbai Cummins India Ltd KPIT-Cummins CGT F
Slide 4: Strategic Leadership Team
Strategic Leadership Team Anant Talaulicar President – Components Group and Managing Director – India ABO Raj Menon Rajiv Batra Sudha Dhar Nagarajan Government Qureish Chief Operating Finance & Chief Balanaga Relations Shipchandler Officer Strategy Information Human Internal Officer Resources Audit
Slide 5: Operating Leadership Team
Operating Leadership Team Raj Menon Chief Operating Officer – India ABO Mahesh Narang Bhavana Amit Kumar Sandeep Sinha Vipul Tandon Ashwath Ram Industrial Engine Bindra Power New & ReCon Distribution Tata Cummins Business Auto Business Generation Parts India Business Operations Arun Ramachandran Anj
Slide 6: Organization Structure
Organization Structure Cummins in India Entities : Business Units: 1. Cummins India Ltd. Engine Business 2. Cummins Research & Technology India Automotive Ltd. Industrial 3. Cummins Generator Technologies India ReCon Ltd. Power Generation Business 4. Cummins Technologies India Ltd. Gener
Slide 7: Cummins India Ltd.
Cummins India Ltd. Established in 1962, 51% subsidiary of Cummins Inc. Manufactures a variety of engines operating on diesel, natural gas and dual fuel Provides innovative solutions across Industrial, Power Generation and Automotive applications Manufactures over 40,000 engines p.a. Amongs
Slide 8: CIL – Sales Trend
CIL — Sales Trend INR Cr. 4,500 4 3,500 2,500 1,500 + 3,945 3,304 3,062 | 2.845 2008-09 2009-10 2010-11 YTD2011-12 VeBRAY, eBEBP AT
Slide 9: CIL – PAT Trend
CIL— PAT Trend INR Cr. 900 5 r 18.0% 15.6% 800 15.0% 14.6% | 16.0% — 700 | 12.3% ~~ L 14.0% 591 600 | 11.1% 497% 10.8% + 12.0% ——(- + 500 + 434 444 447 | 10.0% 400 + 8.0% 281 300 4 242 | 6.0% 176 200 + 137 F 4.0% 109 86 4 109 wan | o oO I oom ty) . a : . : 7 . 7 7 : 7 | 0.0% 2000-01 2001-02 2002-03
Slide 10: CIL – Dividend Trend
CIL – Dividend Trend INR Cr. 250% # * * Dividend before Dividend distribution tax # Interim Dividend post bonus issue 10
Slide 11: CIL Strategy
CIL Strategy • Hub for LHP export applications • Establish world-class office campus and technical centre for existing and future work-force Invest in Capacity for Future Growth Strategy Encircle Fit for Market Key OEMs & Products Customers • Grow and diversify business • Upgrade products to meet ne
Slide 12: Industrial Business Update
Industrial Business Update 12
Slide 13: IBU Revenue growth Story
IBU Revenue growth Story INR M 6000 5,530 5000 2005-2011 CAGR : 21 % 5,080 2011 vs 2010 : 9% 4000 3,910 3,400 3000 2,721 2000 2,156 1,730 1000 0 2005 2006 2007 2008 2009 2010 2011 13
Slide 14: Industrial Markets
Industrial Markets Construction Light Mining Marine Rail Oil & Gas & Compressors Construction Dumpers Excavators Excavators Defence Locomotives Oil Rigs Dozers Main Propulsion Power Car Gas Compression Compressors Surface Miners Industrial & Fire Pumps Commercial Marine Market Drivers Life Cycle C
Slide 15: Key Markets Outlook
Key Markets Outlook Mining Marine Rail • Demand supply gap in power sector Geographical advantage of Indian • Govt. proposed outlay in the 11th and growth in Steel & Cement sector Peninsula & abundance of rivers, Five Year Plan is 40% higher over fueling demand for Mining of Coal, → Shipping secto
Slide 16: PowerGen Business Update
PowerGen Business Update 16
Slide 17: Journey till now ..
Journey till now .. PGBU Growth Staircase Current Power Generation Products (7.5- 3000kVA) Revenue CAGR LHP Domestic 2005-2011: 17% • X series- Gensets Profit CAGR • S series- G drive 2005-2011: 20% MHP/ HHP Domestic • B Series- G drive LHP Export G drive Products • Spares • X series- Gensets •C
Slide 18: Market outlook: Power Situation
Market outlook: Power Situation Power Outlook: Weak Peak Demand/Supply gap continued to be >13% in Jan-12, while average deficit eased to 9.3% from 11.3% in Dec-11 India’s installed generation capacity increased only 2.8% from Sep’11 to Jan’12 97% of all capacity addition above, came from Coal-ba
Slide 19: MNRE Biomass Based Power Generation Targets & Market Potential
MNRE Biomass Based Power Generation Targets & Market Potential 12th 5 year Plan: 2012 – 2017 13th 5 year Plan: 2017 – 2022 Biomass Agro Residue Plantation Biomass Agro Residue Plantation IPP 500 500 IPP 900 2200 Tail End 400 100 Tail End 1450 850 Off Grid 125 75 Off Grid 100 25 CoGen 100 0 CoGen 175
Slide 20: The Cummins Advantage
The Cummins Advantage Low HP genset hub Future ready of world competitive offerings Pan India coverage(Distribution GOEM partnership & After market Proven Integrated People strength- player(Diesel/Gas) Best in industry THE CUMMINS ADVANTAGE 20
Slide 21: Distribution Business Update
Distribution Business Update 21
Slide 22: Government and key Account
Extending dependable services to customers across India, Nepal and Bhutan Business Model All India Footprint Distribution Business Unit • 4 Zonal Offices • 19 Area Offices Customer Support • 1 PDC • 7 Parts Depots New Recon Service • 1 HHP Rebuild Centre Parts Engine Engine CBD • 2 Regional Repair C
Slide 23: Improving Net Promoter Score (NPS)
Improving Net Promoter Score (NPS) – a reflection of growing customer satisfaction NPS performance trend Focus on enhancing customer experience - Driving initiatives based on feedback received during NPS surveys • NPS focused Last Mile Six Sigma Projects • NPS Council and loyalty workshops 23 Cummin
Slide 24: Key customer segments
Key customer segments Market-wise sales revenue 3% 5% 10% 39% 21% 0% 3% 2% 2% 2% 5% 3% 3% 2% Mining Agriculture Oil & Gas Defence Marine Railways Const + Pumps Water-well rigs + Compre Realty/ resi Mfg Agro Mfg (Pharma Chem & Discreet) Mfg Textile Telecom/ IT/ ITES Auto 24 Cummins Confidential
Slide 25: Key economic sector growth and opportunities
Key economic sector growth and opportunities • Installed capacity at ~186 GW, as of Jan 2012 • Base load and peak load deficits for the month of Jan 2012 stand at 8.5% and 9.3% Power • Coal shortages for power gen sector – power deficit expected to continue Generation • Limitations in transmission n
Slide 26: Megasite Update
Megasite Update 26
Slide 27: Megasite Rationale
Megasite Rationale Support Cummins growth plans in India Avail Megasite tax incentives Obtain better cost synergies Supports the ‘One Cummins’ brand strategy 27
Slide 28: Megasite Expansion Plan
Megasite Expansion Plan Domestic TCL-2 ReCon HHP Rebuild PDC CIL Projects PGBU B Uplift & BPI SEZ ReCon HHP EBU facility PGBU CIL Project Completed In progress 28 Future Projects
Slide 29: Megasite Domestic Tariff Area
Megasite Domestic Tariff Area Megasite DTA (150 Acres) TCL2 – B Plant TCL3 - ISLe and B Plant BCL Upfit Plant Common Facilities – IT Building, Water and Fire fighting Tank, Electrical Sub station, Day Care Centre, 17 Acre Medical & Fitness Center Plot for Fuel System HHP Rebuild & Recon India* Parts
Slide 30: India Office Campus Update
India Office Campus Update 30
Slide 31: India Office Campus
India Office Campus 7 a. . i . 4 « 7 a +9 a faa +96 1962+ 2012 +++ 31 :
Slide 32: India Office Campus
India Office Campus 32 \EBRAN, 3 Mey +++ 1962+ 2012 +++
Slide 33: Rational for IOC
Rational for IOC Enable Cummins Growth in India – Cummins in India grew from $640M in 2004 to $1.9B in 2010 and is expected to grow to $7B by 2016 – Cummins Professional workforce will need increase to support the India growth plans Reduction in Scattered Offices – Currently Cummins operates fro
Slide 34: CIL Capex Projections
CIL Capex Projections CapEx at Megasite 84.8 137.6 121.0 58.2 48.1 449.7 India Office Campus 90.3 128.0 229.0 236.0 162.4 845.7 Other Capex 75.9 86.1 203.7 102.6 87.4 555.7 Cummins India Ltd. 250.9 351.7 553.8 396.8 297.9 1,851.1 A EBRAD, 3 Mey a5 2a +96 1962+ 2012 +++
Slide 35: Thank you
Thank you +96 1962+ 2012 +++