Cummins India Limited · NSE:CUMMINSIND
Cummins India — Shareholder Meeting (August 2020)
28 slides from Cummins India's shareholder meeting presentation, Aug 25, 2020
Slide 1: Intimation of AGM presentation to stock exchanges
Ref: STEX/SECT/2020 August 25, 2020 The Relationship Manager, National Stock Exchange of India Limited DCS-CRD Exchange Plaza, 5th Floor, BSE Limited, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra – Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai 400 001 Mumbai 400 051 BSE Scrip
Slide 2: Cummins India Limited 59th Annual General Meeting 2020
Cummins India Limited 59th Annual General Meeting 2020 Ashwath Ram, Managing Director, Cummins India Limited August 25, 2020 Public
Slide 3: Why We Exist
WHY WE EXIST Public HOW WE WILL DO [T te la a INTEGRITY Doing what you say you v 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 others EXCELLE
Slide 4: Cummins Power Generation celebrates 100 years of success
Cummins Power Generation celebrates 100 years of success and its commitment to the next generation of power 3
Slide 5: Cummins Inc. Highlights
Cummins Inc. Highlights ✓ PLANET 2050 – new environmental strategy ✓ Gender Representation in Leadership – Reached 50% level ✓ Cummins Powers Women Program - Impacting the lives of 100,000 people to promote equality. ✓ Investing in future- Record $1 billion invested in research, development and engi
Slide 6: Current Scenario
Current Scenario 5
Slide 7: Impact of COVID 19
Impact of COVID 19 230 lakh+ 30 lakh + affected affected globally In India ▪ Worst disruption ever witnessed ▪ More than 200 countries impacted ▪ Both human and economic loss ▪ Maharashtra holds the highest percentage of affected cases in India 6
Slide 8: Challenging market conditions impacting revenues
Challenging market conditions impacting revenues 7
Slide 9: Despite ongoing recovery, Indian economy expected to contract in FY21
Despite ongoing recovery, Indian economy expected to contract in FY21 ₹ Cr COVID-19 – Weighing on the Indian Growth Story FY 19 - 6.8% FY 20 - 4.2% Inflation Highlights 9.0% 8.2% 8.0% 7.1% 7.0% 6.6% 5.8% 6.0% 5.0% 5.0% 4.5% 4.7% • Covid-19 exacerbated slowing economic growth, Q4 4.0% 3.1% Negative 3
Slide 10: India's Cummins response to the pandemic
Cummins India’s response to the pandemic 9
Slide 11: Cummins India's Response to the pandemic
Cummins India’s Response to the pandemic ✓ Living our Brand Promise of Dependability ✓ Safe Return to work as our plants and offices have restarted operations gradually ✓ Cummins has a COVID19 Safe Work Playbook (internal as well as an external version) 10
Slide 12: Making people's lives better: Our impact till date
Cummins India’s Response to the pandemic Making people’s lives better (Our Impact Till Date ) ₹ 3.15 Cr spent till date on 5,500+ Safety goggles donated COVID relief to hospitals PPE kits donated at Sassoon General 10,000+ Face shields donated Hospital 8,350+ N95 masks donated to hospitals to hospit
Slide 13: Top priorities
Top 3 priorities s Se (1) Health and safety of our employees is paramount “ at all times. &88, 2} We continue to serve our customers, who are providing SF A critical elements to the economy. ’ . riiy O) Our Company continues into the future, it's really GY 7 important that we continue. Cummins | 12
Slide 14: Cummins India Limited - Performance
Cummins India Limited- Performance 13 13
Slide 15: Highlights
Highlights ✓ Products- Launched 40 kVA genset, KTA-19 engine and RoHS compliant low kVA products Phaltan Model Town 70 chronic dumping spots cleaned K-19 on display at trade show in Middle East in export market; Executed first-ever order of QSK 95 ✓ Service- Rendered unconditional support during cyc
Slide 16: How we have performed: 2019-20 Financial Performance
How we have performed 2019-20 Financial Performance ▪ Revenue Cash ▪ Profitability Profit before generated Net Sales from Interest Tax operations ▪ Cash Flow ₹ 5,062 Cr ₹ 799 Cr ₹ 599 Cr ▪ Dividend Dividend 700% * Excluding Exceptional Item (Employee Actions) 15
Slide 17: CIL Revenue Trend
CIL Revenue Trend ₹ Cr 5526 5,310 4,967 5,030 351 379 79 5,526 4,958 4,952 5,062 CAGR: 2.5% 4,588 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Sales Excise Total FY20 revenue impacted due to Covid-19 related lockdown and softness in the global economies * Excise duty part of sales from FY16 onwards; howe
Slide 18: CIL PBIT Trend
CIL PBIT Trend ₹ Cr • FY20 PBIT impacted due to volume loss and sales mix • Cost optimization measures to deliver value during challenging times * Above excludes exceptional items 17
Slide 19: Domestic vs Exports Trend
Domestic vs Exports Trend ₹ Cr 5,526 CAGR since FY 2016 4,958 4,952 5,062 4,588 Overall: 2.5% 1,652 1,291 1,611 1,574 68% (6)% 70% 1,663 68% 68% 64% 3,873 3,771 3,348 3,378 2,925 7% 36% 32% 32% 32% 30% FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Domestic Export FY20 revenue impacted due to Covid-19 rela
Slide 20: Domestic Revenue: Segment wise
Domestic Revenue: Segment wise ₹ Cr CAGR: 15% CAGR: 6% Industrial Distribution 1,345 1,344 938 975 1,243 1,174 1,068 760 688 554 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 CAGR: 3% CAGR: 6% Powergen GDP Growth (%) 8.0% 8.3% 1,592 7.0% 1,434 6.1% 1,249 1,332 1,333
Slide 21: Export Revenue: Segment wise
Export Revenue: Segment wise ₹ Cr CAGR: 1% CAGR: (14)% HHP Exports LHP Exports 803 894 782 772 726 674 740 727 482 694 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 CAGR: 4% Spares 115 123 • Exports impacted by slowing end markets and 89 82 competitive pressure 69 •
Slide 22: Dividend Trend
Dividend Trend 600 850% 900% ₹ Cr 750% 800% 500 700% 700% 700% 700% 400 600% 500% 300 568 400% 501 467 467 200 428 300% 200% 100 100% - 0% FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Dividend (₹ Cr) Dividend % FY FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Dividend Pay- 62% 64% 71% 79% 68% out% * Including
Slide 23: Corporate Responsibility: Powering Prosperous Communities
India ABO Corporate Responsibility 2019 Powering Prosperous communities 83% employees completed EEEC hours 45,000+ of EEEC hrs. utilized in CR projects Udgam Livelihood project for 53000+ Trees 3,500+ Mn 50+ Women, Implement sustained. gallons water across 7 locations harvested Cummins Powers Women
Slide 24: Cummins - Well positioned to navigate challenges
Cummins - Well positioned to navigate challenges 23 23
Slide 25: Managing the cycles
Managing the cycles Cummins Revenues 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 24
Slide 26: CIL Growth Strategy
CIL Growth Strategy CORE CAPABILITIES GROWTH PLATFORMS Technology Leadership Core New Power Industrial Telematics Generation Scale Advantage Market Share Growth Electrification Distribution Network Content Growth Renewables Distribution Export Alternate Fuels Partnerships & Customers New Products Ad
Slide 27: Experienced Leadership Team
Experienced Leadership Team Ashwath Ram Managing Director, Cummins India Limited Anjali Mandar Shveta Sowmya Aditi TBD Rajiv Ajay Nagarajan TBD Ram Anupama Anubhav Pandey Deo Arya Chaturvedi Sharma Batra Patil Balanaga Ottikkutti Kaul Kapoor Distribution Strategy Vice Chief Chief Information Enginee
Slide 28: What we are doing to win in downturn
What we are doing to win in downturn Investing in new technologies and launching Working closely with the Govt. to be new products in existing markets part of the key roadmap to improve Introducing better products and fighting harder to energy and infrastructure of the country gain market share and