Cummins India Limited · NSE:CUMMINSIND

Cummins India — Shareholder Meeting (August 2012)

37 slides from Cummins India's shareholder meeting presentation, Aug 2, 2012

  1. Slide 1: Cummins India Limited 51st Annual General Meeting

    Cummins India Limited 51st Annual General Meeting August 2, 2012

  2. 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

  3. 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

  4. 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

  5. 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

  6. Slide 6: Cummins Inc. 2011 Revenue by Segment

    Cummins Inc. 2011 Revenue by  Macro growth trends Segment playing to Cummins’ Distribution Business strength 14%  Vision/Mission/Values  Demonstrated Components technology leadership Group 18%  Global footprint Engine 2011 Data Sales: $18.0 billion Power Generation Business Business EBIT : $2.6

  7. Slide 7: Cummins in India

    Cummins Turbo Cummins in India Technologies Fleetguard Filters • In India since 1962 Valvoline Rudrapur Cummins • 9 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

  8. Slide 8: 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. •

  9. Slide 9: Strategic Leadership Team

    Strategic Leadership Team Anant Talaulicar President – Components Group and Managing Director – India ABO Mahesh Narang Rajiv Batra Sudha Dhar Ashish Nagarajan Sameer Qureish Chief Operating Finance, Chief Aggarwal Balanaga Chugh Shipchandler Officer Strategy, Information Government Human Legal & In

  10. Slide 10: Operating Leadership Team

    Operating Leadership Team Mahesh Narang Chief Operating Officer – India ABO Mahesh Narang Amit Kumar Bhavana Vipul Tandon Sandeep Sinha Ashwath Ram Industrial Engine Power Bindra Distribution New & ReCon Tata Cummins Business Generation Auto Business Business Parts Operations Arun Ramachandran Anjal

  11. Slide 11: Cummins in India - Goal Tree

    Cummins in India - Goal Common Critical Initiatives Tree Fit For Market Offerings Capture Adjacent Business Objectives Strategies Opportunities Excel in VPI / VPC Grow to $6B by Enhance 2016 Domestic Market Enhance & Leverage Leadership Partnerships Exceed 25% Excel in Product Quality ROANA Leverage

  12. Slide 12: Cummins India Limited - Overview

    Cummins India Limited - Overview  50 years of successful operation  Over last decade: – Transformation & acceleration in profitable growth  Prepared for market volatility  Poised for continued accelerated, profitable growth 12

  13. Slide 13: Cummins India Limited – Year 2011-12

    Cummins India Limited – Year 2011-12  Best Year Ever  Record sales and profits – Net Sales : INR 4,052.2 crores – PBT : INR 824.6 crores (20.4% PBT)  Strong balance sheet  Bonus shares declared at the 50th AGM  Increased dividend  Increased investments for growth – New Projects at the Cummins

  14. Slide 14: Financial Performance 2011-12

    Cummins India Limited - Financial Performance 2011-12 * * Income from CEIL Divestment 14

  15. Slide 15: Reducing Cost and Improving Efficiencies

    Reducing Cost and Improving Efficiencies  Six Sigma – Now in its 12th year – 475 projects closed – Rs. 100 crores in savings – Six projects received the CMI Chairman’s Quality Award – Leadership development tool  ACE III – Rs. 53.8 crores in savings in the first year of implementation. Expected sa

  16. Slide 16: 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 16

  17. Slide 17: Sales and Profit After Tax – Last 5 years

    Cummins India Limited - Sales and Profit After Tax (PAT) – Last 5 years Sales PAT Rs Crores Rs Crores Note: 2006-07 & 2007-08 Sales & PAT includes DBU (erstwhile CSS) 17

  18. Slide 18: Sales: Domestic & Exports

    Cummins India Limited - Sales: Domestic & Exports Rs Crores * * * Including DBU (erstwhile CSS); Net of elimination 18

  19. Slide 19: Sales: By Business Units

    Cummins India Limited - Sales : By Business Units Rs Crores CAGR – 10% CAGR – 65% CAGR – 8% CAGR – 11% CAGR – (2)% * CAGR for 3 Years 19

  20. Slide 20: Strong ROE Performance

    Cummins India Limited - Strong ROE Performance 20

  21. Slide 21: Share Price Appreciation

    Cummins India Limited - Share Price Appreciation * As on July 30, 2012 on BSE Sensex Share prices up to Mar’12 have been adjusted for bonus issue 21

  22. Slide 22: 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 22

  23. Slide 23: Bettering lives of Shareholders

    Bettering lives of Shareholders  Strong balance sheet – Debt to capital Zero Debt – Cash & Equivalents Rs. 750 Cr  Grew our business – Sales growth (5 Yrs CAGR) 14%  Returned value to shareholders – Return on equity (5 Yrs) 24% – Share appreciation (5 Yrs) 21% – 550% Dividend (2011-12) Rs. 305 Cr

  24. Slide 24: Bettering lives of Customers

    Bettering lives of Customers  QSK60 – Extends manufacturing line to 2,875 hp – Domestic Power Generation and various Industrial applications  S3.8 & 6BTA5.9 – Targeted at low kVA export market  CNG series hybrid technology 24

  25. Slide 25: OEBRAT

    OEBRAT <ey VOY CB. +++ 1962+ 2012 +++

  26. Slide 26: Bettering lives of Customers

    Bettering lives of Customers  Upfit Center for 3.9 – 8.9L diesel and natural gas engines at Megasite in Phaltan 26

  27. Slide 27: Bettering lives of Customers

    Bettering lives of Customers  Generator Set Plant at SEZ, Megasite in Phaltan 27

  28. Slide 28: Bettering lives of Customers

    Bettering lives of Customers  India Technical Center in Pune 28

  29. Slide 29: Bettering lives of Suppliers

    Bettering lives of Suppliers  Completed 34 Supplier Focused Six Sigma projects  National Electronic Fund Transfer  Training Programs  A Dedicated Foundry Expert  Supplier Code of Conduct 29

  30. Slide 30: Bettering lives of Employees

    Bettering lives of Employees  Hire to Develop  Global and site Onboarding  Organizational development across levels, functions, BU’s  Association with premier institutes / universities – SP Jain institute (India) and the Kelley School of Business (Indiana) – Added IIM, Ahmedabad – Added ARAI-Vel

  31. Slide 31: Bettering lives of Communities

    Bettering lives of Communities  Cummins College of Engineering for Women - Signature project  Cummins Scholarship Program – graduate level  Lila Poonawala Foundation – post graduate level  Upgradation of ITI Phaltan  Developing Nandal into a Model village with YCC & KVK  Environmental Challeng

  32. Slide 32: \EBRA 7,

    32 \EBRA 7, & P Ng we, 4a, ¢ +9 +1962 2012 +++

  33. Slide 33: Financial Performance Q1 12-13 vs Q1 11-12

    Financial Performance Q1 12-13 vs Q1 11-12 * 33 * Income from CEIL Divestment

  34. Slide 34: Financial Performance Q1 12-13 vs Q4 11-12

    Financial Performance Q1 12-13 vs Q4 11-12 34

  35. Slide 35: The Road Ahead - Key Growth Drivers

    The Road Ahead - Key Growth Drivers  Significant & growing middle class  Infrastructure investments  GDP growth  Growing power needs  Regulations converging to international standards  Opportunity to leverage low cost products/services globally 35

  36. Slide 36: Company Positioned Strongly

    Company Positioned Strongly  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  Div

  37. Slide 37: Outlook and Conclusion

    Outlook and Conclusion  Disappointing demand outlook short term  Well positioned to weather market fluctuations  Bright outlook longer term  We remain steadfast on : – Guiding Principles (Vision, Mission, Values, Personality) – Objectives, Four-fold strategy – Cummins Business Model / Cummins Op

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