Cummins India Limited · NSE:CUMMINSIND
Cummins India — Shareholder Meeting (August 2014)
33 slides from Cummins India's shareholder meeting presentation, Aug 1, 2014
Slide 1: Cummins India Limited 53rd Annual General Meeting
Cummins India Limited 53rd Annual General Meeting August 1, 2014
Slide 2: Cummins Inc.
Cummins Inc. Engine Business Distribution Business Power Generation Business Components Group 1919 - Commenced in Cummins Operations in 190 Countries Columbus, Indiana Business Services More than 90 plants 48,000 employees 600 distributor locations R&D: Over $700 m 6,500 dealer locations Making peop
Slide 3: Cummins Business Model
Cummins Business Model Guiding Principles - Vision, Mission, Core Values Corporate & BU Objectives, Strategies, Initiatives, Projects -- (Goal Trees) Cummins Operating System (COS): – Ten Common Practices – Functional Excellence Framework (Ten Function Leaders, FE Statements, Measures, Process
Slide 4: Why We Are Here – Guiding Principles
Why We Are Here – Guiding Principles Vision: “Making people’s lives better by unleashing the Power of Cummins” Personality: Decisive Driven To Win Agile Passionate Caring Core Values: Mission: Integrity Motivating people to act like owners working together Innovation Exceeding cust
Slide 5: COS 10 Practices
COS 10 Practices Put the Synchronize Design quality Involve people Ensure equipment customer flows (material, in every step of and promote and tools are first, and physical and the process teamwork available and provide real information) capable value Create Establish the Treat preferred Follow comm
Slide 6: Cummins Inc. - 2013 Revenue by Region
Cummins Inc. - 2013 Revenue by Region Total CMI Revenue: $17.3 B 6
Slide 7: 2013-2014 GDP Decline Bottomed Out
2013-2014 GDP Decline Bottomed Out 10% 8% Q1-2013 Q4-2013 6% Q1-2014 4% 2% 0% China India Brazil US EU -2% 7
Slide 8: Cummins in India
Cummins Turbo Cummins in India Technologies Fleetguard Filters • In India since 1962 Valvoline Rudrapur Cummins • 8 companies (including 3 JVs and 1 Service JV) Cummins SVAM Tata Cummins • Over 9,000 employees NCR Fleetguard Filters • INR 98B combined sales Jamshedpur Cummins Turbo Technologies Engi
Slide 9: India Organization Snapshot
India Organization Snapshot Cummins in India Entities : Business Units : 1. Cummins India Ltd. Engine 2. Cummins Research & Technology India • Automotive Ltd. • Industrial 3. Cummins Generator Technologies India • Parts & ReCon Ltd. Power Generation 4. Cummins Technologies India Ltd. • Generator
Slide 10: Strategic Leadership Team
Strategic Leadership Team Anant Talaulicar President – Components Group and Managing Director – India ABO Ashish Nagarajan TBD Qureish Mahesh Narang Rajiv Batra Sudha Dhar Aggarwal Balanaga Legal & Shipchandler Chief Operating Finance & Chief Government Human Secretarial Internal Officer Strategy In
Slide 11: Operating Leadership Team
Operating Leadership Team Mahesh Narang Chief Operating Officer – India ABO Sandeep Sinha Bhavana Amit Kumar Vipul Tandon Milind Madani Ashwath Ram Industrial Engine Bindra Power Distribution New & ReCon Tata Cummins Business Auto Business Generation Business Parts India Operations Anjali Pandey Pau
Slide 12: Cummins in India – 2014
Cummins in India – 2014 Common Critical Initiatives Goal Tree Become Excellent in Customer Support Objectives Strategies Develop a Growth Mindset Grow to $3B Domestic Market Share Drive Emission Leadership by 2019 Leadership Exceed Move from Multinational to 17.5% PBIT Global Deliver 45% Achieve Sup
Slide 13: Cummins India Limited – Year 2013-14
Cummins India Limited – Year 2013-14 Sales and profits – Net Sales : INR 3,899 crores – Operating Profit (before exceptional items) : INR 644 crores (16.5% of sales) Strong balance sheet, strong cash reserves, no debt Investments for growth – New Projects at the Cummins Megasite in Phaltan – I
Slide 14: Cummins India Limited - Financial Performance 2013-14
Cummins India Limited - Financial Performance 2013-14 14
Slide 15: Sales: Domestic & Exports
Cummins India Limited - Sales: Domestic & Exports Rs Crores Sales Growth: Domestic: 3% & Exports: 29% CAGR 15
Slide 16: Sales: By Business Units
Cummins India Limited - Sales : By Business Units Rs Crores CAGR : 2% CAGR: 29% CAGR: 8% CAGR: 5% CAGR: (-18%) 16
Slide 17: Strong ROE Performance
Cummins India Limited - Strong ROE Performance 17
Slide 18: Dividend Trend
Dividend Trend FY 13-14 • 250% Interim Dividend • 400% Proposed Final Dividend 18
Slide 19: Share Price Appreciation
Cummins India Limited - Share Price Appreciation * As on 14th July 2014 on BSE Sensex 19
Slide 20: Shareholder Return (Last 5 Years)
Cummins India Limited - Shareholder Return (Last 5 Years) * * * Shareholder return computed as a % change in the share price (adjusted for bonus) and dividend payout Source : BSE India website 20
Slide 21: Cummins India Limited – Strongly Positioned
Cummins India Limited – Strongly Positioned Strong balance sheet – Debt to capital Zero Debt – Cash & Equivalents Rs. 582 Cr Grew our business – Sales growth (5 Yrs CAGR) 8% Returned value to shareholders – Return on equity (5 Yrs) 38% – Share appreciation (5 Yrs) 35% – 650% Dividend (2013-14)
Slide 22: Dependable Products
Dependable Products Launched projects at the Megasite – HHP Rebuild Center – India Parts Distribution Center – Phaltan Midrange Upfit Center – Exports unit for generator sets and G-drives Upcoming Projects – Two world-class Training Centers – Global Technical Center – Expanded Warehouse to suppo
Slide 23: Dependable Services
Dependable Services Driving Customer Support Excellence (CSE) – Online and instructor led training modules – Customer Focused Six Sigma Projects : 89 – Common Dealer Operating System – Maintenance and repair contracts Net Promoter Score has increased to 65% in 2013-14 from 63% in 2012-13 23
Slide 24: Great Place To Work
Great Place To Work Leadership Excellence Cummins Performance Operating Ethic – System CPMS/IDP/ODR Corporate Diversity & Responsibility Great Place Inclusion to Work Recruitment Employee and Engagement Onboarding Survey & Actions Compensation, Employee Benefits & Communication Recognition 24
Slide 25: Employee Engagement Model
Employee Engagement Model Career Opportunities for Growth Good Meaningful Manager Work Work-Life Recognition Balance & Rewards Work Learning & Environment Development and Culture Senior Leadership 25
Slide 26: Dependable People
Dependable People Building the Right Environment – World-class facilities – Leadership Development • Five critical skills • Leadership Conversation sessions • Partnerships for Sponsored Education (Kelley School of Business, S.P. Jain, IIM-A, ARAI-VIT) • Six Sigma : 1,123 trained belts – Health & S
Slide 27: Dependable People
Dependable People Building the Right Environment – Growth Opportunities • Global internal Moves Policy & iRecruit • Fresh hires : 183 • Rotations across functions and businesses : 387 – Diversity : Gender/Regional Representation and Inclusion • Women constitute 28% of professional employees, and 1
Slide 28: Dependable People
Dependable People Strengthening Our Communities : – Sustainable projects • Cummins Scholarship Program : 125 up from 100 last year • Cummins College of Engineering for Women : Skill Development Program • Catch them Young : 75 cities and more than 2L students • Zero Garbage Project in Baner - Balew
Slide 29: Recognition
Recognition Environment & Safety : – Environment Award for Green Building Project : For the newly opened Power Generation plant, situated in the Special Economic Zone (SEZ) of the Megasite – Chairman Environment Award for Water Conservation, the Safety Milestone Bronze and Gold Award, and the Cummi
Slide 30: Financial Performance Q1 14-15 vs Q1 13-14
Financial Performance Q1 14-15 vs Q1 13-14 30
Slide 31: Financial Performance Q1 14-15 vs Q4 13-14
Financial Performance Q1 14-15 vs Q4 13-14 * 31
Slide 32: Macro Trends and Our Capabilities Will Drive Profitable Growth
Macro Trends and Our Capabilities Will Drive Profitable Growth Macro Trends Key Capabilities Growing Middle Class Technology & GDP Leadership Environmental Local Manufacturing Regulations Infrastructure Strong Partnerships Development Diverse Talent & Energy – Leadership Price/Availability Strong Cu
Slide 33: Outlook and Conclusion
Outlook and Conclusion Well positioned to leverage the economic revival We remain steadfast on : – Guiding Principles (Vision, Mission, Values, Personality) – Objectives, strategies, initiatives – Cummins Business Model / Cummins Operating System – Inclusiveness based performance ethic – Brand P