Cummins India Limited · NSE:CUMMINSIND

Cummins India — Shareholder Meeting (August 2013)

35 slides from Cummins India's shareholder meeting presentation, Aug 1, 2013

  1. Slide 1: Cummins India Limited 52nd Annual General Meeting

    Cummins India Limited 52nd Annual General Meeting August 1, 2013

  2. 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 50 manufacturing locations 44,000 employees 500 distributor locations R&D: $329 million 5,200 dealer locations Mak

  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: 2012 Revenue by Marketing Territory

    Cummins Inc. 2012 Revenue by Marketing Territory Africa 1% Canada 4% India 4% China 6% Other Asia / Australia 11% U.S. 48% Mexico / Latin America 10% 2012 CMI Revenue: Europe / Middle $17.3B East 16% 6

  7. Slide 7: 2012-13 Real GDP Trend at Constant Price

    2012-13 Real GDP Trend at Constant Price (over same quarter previous year) 7

  8. Slide 8: Cummins in India

    Cummins Turbo Cummins in India Technologies Fleetguard Filters • In India since 1962 Valvoline Rudrapur Cummins • 9 companies (including 3 JVs and 1 Service JV) Cummins SVAM Tata Cummins • Over 9,000 employees NCR Fleetguard Filters • $2.1B combined sales Jamshedpur Cummins Turbo Technologies Engine

  9. 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

  10. Slide 10: 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

  11. 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 R.S. Raman Industrial Engine Bindra Power Distribution New & ReCon Tata Cummins Generator Business Auto Business Generation Business Operations Technolo

  12. Slide 12: Cummins in India - Goal Tree 2013

    Cummins in India - Goal Common Critical Tree 2013 Initiatives Strategic Principles Become Excellent in Objectives Customer Support Develop a Growth Mindset $5.3 B by 2017 with Retain & Grow Market Move from Multinational to Share Global min. 20% PBIT Achieve Supply Chain Relentlessly Pursue Cost Exc

  13. Slide 13: Cummins India Limited – Year 2012-13

    Cummins India Limited – Year 2012-13  Best Year Ever  Record sales and profits – Net Sales : INR 4,509 crores – PBIT (before exceptional items) : INR 994 crores (22.1% PBIT)  Strong balance sheet  Dividend increase  Investments for growth – New Projects at the Cummins Megasite in Phaltan – Indi

  14. Slide 14: Cummins India Limited - Financial Performance 2012-13

    Cummins India Limited - Financial Performance 2012-13 14

  15. Slide 15: 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. 15

  16. Slide 16: 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 16

  17. Slide 17: Sales: Domestic & Exports

    Cummins India Limited - Sales: Domestic & Exports Rs Crores 17

  18. Slide 18: Sales: By Business Units

    Cummins India Limited - Sales : By Business Units Rs Crores CAGR – 13% CAGR – 0% CAGR – 14% CAGR – 10% CAGR – 11% * CAGR for 5 Years 18

  19. Slide 19: Strong ROE Performance

    Cummins India Limited - Strong ROE Performance 19

  20. Slide 20: Dividend trend

    Dividend trend % of PAT 41% 54% 50% 52% 47% FY 12-13 • 250% Interim Dividend • 400% Proposed Final Dividend 20

  21. Slide 21: Share Price Appreciation

    Cummins India Limited - Share Price Appreciation 17% Share Price Appreciation In Last Five Years * As on 30th July 2013 on BSE Sensex Share prices upto Mar’10 have been adjusted to bonus issue 21

  22. Slide 22: Share price appreciation (Last 5 Years)

    Cummins India Limited - Share price appreciation (Last 5 Years) Shareholders return including dividend (last 5 years) : 19% Share price appreciation ( last 5 years) : 17% Shareholder return computed as a % change in the share price (adjusted for bonus) Share price appreciation ( 1962- 2013) : 19% 22

  23. Slide 23: Bettering lives of Shareholders

    Bettering lives of Shareholders  Strong balance sheet – Debt to capital Zero Debt – Cash & Equivalents Rs. 982 Cr  Grew our business – Sales growth (5 Yrs CAGR) 8%  Returned value to shareholders – Return on equity (5 Yrs Avg) 31 % – Share appreciation (5 Yrs) 17% – 650% Dividend (2012-13) Rs. 36

  24. Slide 24: Decisive

    Decisive  Continuing to Invest in the Future – Operational Projects • Phaltan Midrange Upfit Center – Upcoming Projects • Exports unit for manufacturing generator sets and G-drives • High horsepower engines for exports in the 19 - 60 litre range • Plant for L series engine for automotive, power gen

  25. Slide 25: Driven to Win

    Driven to Win  Fit-for-Market Solutions – Generator sets engines complaint with CPCBII – Mechanically controlled 5.9 litre for automotive and construction segments – 19 litre engine for rail power cars – Lower kilowatt generator sets  Enhancing Dealership Operational Excellence – Cummins SVAM Sale

  26. Slide 26: Agile

    Agile Reducing Cost and Improving Efficiencies :  Six Sigma – Now in its 13th year – 399 projects closed – Rs. 48 Crores in savings – Leadership development tool  TRIMS (Total Reduction in Indirect Materials and Services) – Rs. 7.52 Crores in bottom line savings and Rs. 22.9 Crores in avoidance sa

  27. Slide 27: Passionate Towards our Customers’ Success

    Passionate Towards our Customers’ Success: Established Training Centers : –Global Training Center in partnership with OEM, Jakson Power Solutions –Cummins Comprehensive Technical Training Facility –Chhindwara Center of Excellence Introduced Common Dealer Operating System 27

  28. Slide 28: Caring – Towards Employees

    Caring Towards Employees:  Hire-to-Develop Philosophy – Global Leadership Development Program – Sponsoring higher education in management and technical streams – Campus recruitment – Rotations across functions and businesses  Leadership Development – Leadership Culture Series – Building Success in

  29. Slide 29: Caring – Towards Employees

    Caring Towards Employees:  Revised Wage Agreement for associates at the largest manufacturing unit  Recognition Program, CMD Awards, in its 7th year  Second Cummins in India Management Conference  Employee Participation in Corporate Responsibility – 99% last year as compared to 88% the previous

  30. Slide 30: Caring – Towards Communities

    Caring Towards Communities:  Higher Education – Cummins Scholarship Program – Cummins College of Engineering for Women – Phaltan ITI Sponsorship – Phaltan Engineering College Involvement  Energy & Environment – Zero Garbage Project at the second ward in Balewadi, Pune – ‘Catch them Young’ – A comm

  31. Slide 31: Recognition

    Recognition Tata Motors Technology and Innovation Award Engineering Export Promotion Council’s National Award for the 24th successive year Long Association Award from Asia Motor Works Six Sigma : Six projects received the CMI Chairman’s Quality Award Corporate Responsibility : - Recognition fro

  32. Slide 32: Financial Performance Q1 13-14 vs Q1 12-13

    Financial Performance Q1 13-14 vs Q1 12-13 32

  33. Slide 33: Financial Performance Q1 13-14 vs Q4 12-13

    Financial Performance Q1 13-14 vs Q4 12-13 * 33

  34. Slide 34: The Road Ahead - Macro Trends and Our Capabilities

    The Road Ahead - Macro Trends and Our Capabilities Will Drive Profitable Growth Macro Trends Key Capabilities GDP Growth Technology Leadership Infrastructure Development Local Manufacturing and Growing Middle Class Scale Successful Power Deficits Partnerships Emissions Converging to Strong Customer

  35. Slide 35: Outlook and Conclusion

    Outlook and Conclusion  Well positioned to weather market fluctuations  Bright outlook on a sustained basis  We remain steadfast on : – Guiding Principles (Vision, Mission, Values, Personality) – Objectives, strategy – Cummins Business Model / Cummins Operating System – Inclusiveness based perfor

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