Cummins India Limited · NSE:CUMMINSIND
Cummins India — Investor Presentation (May 2012)
30 slides from Cummins India's investor presentation, May 16, 2012
Slide 1: Cummins India Limited Analyst Meet
Cummins India Limited Analyst Meet May 16, 2012
Slide 2: Cummins Inc.
Cummins Inc. Engine Business Distribution Business Power Generation Business Components Group HQ in Columbus, Cummins Operations in 190 Countries Indiana since 1919 Business Services 50 manufacturing locations 44,000 employees 500 distributor locations R&D: $329 million 5,200 dealer locations Making
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 (FE Statements, Measures, Processes, Tools, People Deve
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. 2011 Revenue by Segment
Cummins Inc. 2011 Revenue by Macro growth trends Segment play to Cummins’ Distribution Business strength 14% Vision/Mission/Values Demonstrated Components technology leadership Group 18% Global footprint Leaders Engine Power Generation Business Business 52% 16% 2011 Data Sales: $18.0 billi
Slide 7: Targeting $30B in Sales and 18% EBIT by 2015
Targeting $ 30B in Sales and 18% EBIT by 2015 Sales (US $) EBIT % 30.0 30 18.0% 18% 25 16% 14.5% 14.8% 19.8 14% 20 18.0 12% 10% 9.4% 15 13.0 8% 10 6% 4% 5 2% 0 0% 2007 2011 2012F 2015 2007 2011 2012F 2015 7
Slide 8: Cummins in India
Cummins Turbo Cummins in India Technologies Fleetguard Filters • In India since 1962 Valvoline Rudrapur Cummins • 8 companies (4 JVs, 1 Service JV) Cummins SVAM Tata Cummins • 14,500 employees New Delhi Fleetguard Filters • $2.3B combined sales Jamshedpur Cummins Turbo Technologies Engine Value Pack
Slide 9: India Organization Snapshot
India Organization Snapshot 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. •
Slide 10: Strategic Leadership Team
Strategic Leadership Team Anant Talaulicar President – Components Group and Managing Director – India ABO Raj Menon Rajiv Batra Sudha Dhar Ashish Chief Operating Finance & Chief Aggarwal Officer Strategy Information Government Officer Relations Nagarajan Sameer Qureish Balanaga Chugh Shipchandler Hu
Slide 11: Operating Leadership Team
Operating Leadership Team Raj Menon Chief Operating Officer – India ABO Mahesh Narang Bhavana Amit Kumar Vipul Tandon Sandeep Sinha Ashwath Ram Industrial Engine Bindra Power Distribution New & ReCon Tata Cummins Business Auto Business Generation Business Parts India Operations Arun Ramachandran Anj
Slide 12: Cummins India Limited - Overview
Cummins India Limited - Overview 50 years of successful operation Transformation over last decade Accelerated growth in the current decade Prepared for market volatility 12
Slide 13: Cummins India Limited – Year 2011
Cummins India Limited – Year 2011 2011 : Best Year Ever Record sales and profits Strong balance sheet Bonus shares declared at the 50th AGM Dividend increase Investments for growth – New Projects at the Megasite in Phaltan (Engine upfit Center, Power Generation, TCL3, Fuel Systems, High
Slide 14: Financial Performance 2011-12
Cummins India Limited - Financial Performance 2011-12 * Total Revenue includes Sales & Other Operating Income 14
Slide 15: Sales and Profit After Tax (PAT) – Last 5 years
Cummins India Limited - Sales and Profit After Tax (PAT) – Last 5 years Sales (Rs. Cr) PAT (Rs. Cr) 15
Slide 16: 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 16
Slide 17: Summary of Gross Material Cost Savings
Cummins India Limited - Summary of Gross Material Cost Savings Gross Savings (Rs. Cr) Data for 2005, 2006 and 2007 represents only IEBU 17
Slide 18: Productivity – Revenue/Employee
Cummins India Limited - Productivity – Revenue/Employee (Rs crores) 18
Slide 19: Financial Performance – Q4 11-12
Cummins India Limited - Financial Performance – Q4 11-12 * Total Revenue includes Sales & Other Operating Income 19
Slide 20: Macro Trends that Continue to Drive Sustainable Growth
Macro Trends that Continue to Drive Sustainable Growth GDP growth Significant infrastructure development Power deficits Significant & growing middle class Regulations converging to international standards Opportunity to leverage low cost products/services globally 20
Slide 21: Cummins in India - Goal Tree
Cummins in India - Goal Common Critical Initiatives Tree Fit For Market Offerings Build capacity ahead of Objectives Strategies demand Supply Chain Excellence Grow to $6B by Enhance 2016 Domestic Market Capture adjacent business Leadership opportunities Exceed 25% Leverage Cross – ROANA Leverage Ind
Slide 22: New Product Launches
Cummins India Limited - New Product Launches Engine Business – QSK60 – Extends manufacturing line to >2500 hp – Targeted towards domestic and export Power Generation Business and various industrial applications Power Generation Business - S3.8 & 6BTA5.9 (Urja - Genset) – Targeted at low kVA expo
Slide 23: Upcoming Projects: India Technical Center in Pune
Cummins India Limited - Upcoming Projects India Technical Center in Pune 23
Slide 24: Upcoming Projects: Engine Upfit Center
Cummins India Limited - Upcoming Projects Engine Upfit Center for B & C series and manufacturing of L series at Megasite in Phaltan 24
Slide 25: Upcoming Projects: Generator Set Plant at SEZ
Cummins India Limited - Upcoming Projects Generator Set Plant at SEZ, Megasite in Phaltan 25
Slide 26: Capital Spend at the Megasite (next 5 years)
Cummins India Limited - Capital Spend at the Megasite (next 5 years) 26
Slide 27: Capital Spend (next 5 years)
Cummins India Limited - Capital Spend (next 5 years) 27
Slide 28: Right Environment for Success
Right Environment for Success Established through the Vision, Mission and Values Centralized hiring and Onboarding Representation at College Hires Diversity One Cummins - leveraging synergies Leadership and Employee development Performance Ethic Improved Code of Business Conduct gove
Slide 29: Corporate Responsibility
Corporate Responsibility Far higher focus in this area Prioritized higher education, energy/environment and infrastructure development Cummins College of Engineering for Women - Signature project Every Employee Every Community Environmental Challenge Cummins Scholarship Program 29
Slide 30: Summary
Summary Positioned for Growth – Values based performance ethic – Market leadership – Long term customer and supplier partnerships – Global technology with localization capabilities – Customer support capabilities – Sustaining business strategy – Strong balance sheet – Experienced management team –