Cummins India Limited Registered Office Cummins India Office Campus Tower A, 5th Floor, Survey No. 21, Balewadi
Pune 411 045 Maharashtra, India
Phone +91 20 67067000 Fax +91 20 67067015
cumminsindia.com [email protected] CIN : L29112PN1962PLC012276
Ref: SEC/STEX/2018/NSE/BSE June 04, 2018
The Relationship Manager BSE Limited P. J. Towers, Dalal Street, Fort Mumbai 400001. BSE Scrip Code: 500480
National Stock Exchange of India Limited ‘Exchange Plaza’, C - 1, Block G, Bandra-Kurla Complex, Bandra (E), Mumbai 400051. NSE Symbol: CUMMINSIND
Subject: Intimation of presentation at the analyst meeting held on June 01, 2018. Dear Sir/Madam, With reference to our intimation dated May 25, 2018 and May 30, 2018 towards the analyst
meeting, we are enclosing for your records a copy of the presentation made at the said
analyst meeting conducted by the Company on June 01, 2018.
We request you to kindly take this intimation on your records.
Thanking you,
Yours truly, For Cummins India Limited, K. Venkata Ramana Group Vice President – Legal & Company Secretary ICSI Membership No. – FCS 4138 Encl.: As above
(This letter is digitally signed)
Confidential
June 1
Cummins
India Limited
Analyst and
Investor Meet Rajiv Batra Chief Financial OfficerCummins India Limited
2
Cummins in India – Since 1962
KirloskarCumminsLtd.
CumminsDiesel Sales &Service India(CDS&S)
NewageJV withCrompton
1962 2003200220001989 19981967 2010
CumminsExhaustIndia Ltd (CEIL)
CumminsSales &Service India
CumminsGeneratorTechnologies
LHP SEZ at Megasite
CSS Merged into CIL(2009)
Exhaust Business(CEIL) Divested
KPITCummins Infosystems Ltd.
ValvolineCumminsLtd.
CumminsResearch & Technology India Ltd.
2011 2014 2015
Cummins Residential Campus
Cummins Technical Training Center
India Office Campus
India PDC
HHP RebuildCenter
KPIT Divested
3
Legal Entities BusinessesCummins India Limited
Cummins Sales and Service Pvt. Ltd.
Valvoline Cummins Pvt. Ltd.
Cummins Generator Technologies Pvt. Ltd.
Wholly owned service dealership
Lubricants
Industrial
Cummins India – Business Overview
Powergen Distribution
4
Cummins India Limited
• Established in 1962, 51% subsidiary of Cummins Inc.
• Manufactures a variety of engines operating on diesel, natural gas anddual fuel
• Provides innovative solutions across• Industrial Business• Power-generation• Service support (Distribution Business)
• Manufacturing capacity of over 75,000 engines p.a.
• Plants manufacture engines of various models – NTs, V28, K/KV & Qseries
• Amongst India’s largest exporters of Engineering Products
• Plants: Kothrud, PDC at Phaltan, Power Generation Exports plant(at Phaltan SEZ)
1962- Cummins India Limited , Kothrud Plant
2014- Power Generation Plant SEZ, Phaltan
2010 - Parts Distribution Center , Phaltan
5
2,845
3,951 4,052 4,509
3,899 4,321 4,588
4,958 4,952
379 351
79
2,845
3,951 4,052
4,509
3,899 4,321
4,967 5,310
5,030
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
CIL Revenue Trend
* Excise duty part of sales from FY16 onwards; however excluded from CAGR calculation
₹ Cr
CAGR: 7%
CAGR: 6%
6
Domestic vs Exports Trend₹ Cr
2,412 2,920 2,880
3,240 2,701 2,599
2,925 3,347 3,378
433
1,026 1,172
1,269
1,198 1,722 1,663
1,611 1,574
2,845
3,945 4,052
4,509
3,899
4,321 4,588
4,958 4,951
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Domestic Export
CAGR since FY
2010
7%
6%
CAGR since FY
2014
18%
4%
7
Domestic Revenue: Segment wise₹ Cr
518 507 554
688 760
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Industrial
991 984 1,068
1,174 1,243
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Distribution
1,124 1,055
1,249 1,332 1,333
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Powergen
CAGR: 10%
CAGR: 6%
CAGR: 4%
8
Export Revenue: Segment wise₹ Cr
767 846
694 740 782
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
HHP Exports
381
815 894
772 674
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
LHP Exports
50 61
69
89
115
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Spares
CAGR: 1%
CAGR: 15% (FY14)CAGR: -6% (FY15)
CAGR: 24%
9
CIL PBIT Trend₹ Cr
* Above excludes one-time income
613
807 779
994822 859 920 925 867
21.5%20.4%
19.2%
22.1%21.1% 19.9% 20.1%
18.7%17.5%
0.0%
5.0%
10.0%
15.0%
20.0%
0
200
400
600
800
1000
1200
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Future
.
10
Dividend Trend₹ Cr
238
297 305
360 360 388 388 388
416
600%
750%
550%
650% 650%700% 700% 700%
750%
-200%
-100%
0%
100%
200%
300%
400%
500%
600%
700%
800%
-
50
100
150
200
250
300
350
400
450
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
* Excluding Dividend Distribution tax * Drop in dividend % in 2012 – owing to bonus share; No drop in absolute dividend value
11
CIL Share Price Performance
-50%
0%
50%
100%
150%
200%
Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18Cummins India Limited Sensex
CIL TSR since inception: 21% CAGR₹ 100 invested in CIL in 1965 would give ₹ 28.5 Lakhs in Mar-18
Ret
urn
over
Mar
-10 CIL: 9%
Sensex: 8%
CAGR
12
CIL – Domestic and Exports Business
India Limited
Rail Mining Marine ConstructionCompressor
INDUSTRIAL
POWERGEN DISTRIBUTION
DO
MES
TIC
EXPO
RTS
Engines From Kothrud
Engines (23L, 60L) and HHP gensets from Megasite
LHP Engines and Gensetsfrom Megasite
India Limited
Technologies India Limited
For HHP Gensets, Engines to be sourced from CIL
13
Bettering lives of Shareholders Strong balance sheet
• Debt to capital
• Cash & Equivalents #
Grew our business
• Sales growth (8 Yrs CAGR)
Returned value to shareholders
• Total shareholders’ return* (5 Yrs)• Total shareholders’ return* since inception
Zero Debt₹ 725 Cr
11%
# Includes Cash & Bank balances and Investments.* Share price appreciation + return on dividend reinvestment (Annualized)
7%
21%
14
In Summary
CIL will continue its journey on the PROFITABLE Growth Path
CIL will continue to look at COST OPTIMIZATION to maintain and improve GROSS MARGINS
CIL will be ready for FUTURE EMISSION changes ( CPCB III, CEV BSIV)
CIL will continue to grow and be the DOMESTIC FACING ARM for Cummins in India
1515
Confidential
June 1
Cummins
India Limited
Analyst and
Investor Meet Sandeep SinhaManaging Director Cummins India Limited
17
AGENDAOur Growth Strategy 01
02 Capabilities
03 Growth
04 Culture
05 Q + A
18
Rajiv BatraChief Financial Officer
Mark FirthEngineering
Mandar DeoPower Systems
Sandeep Sinha
Managing Director – India ABO
Amit KumarStrategy Officer
Sophia ManivelInformation Technology
Venkat RamanaLegal & Secretarial
Aditi SharmaQuality
Ashwath RamEngine Business
Anjali PandeyComponents Business
Bhavana BindraDistribution Business
Prafulla NeemaSupply Chain
Vikas ThapaHuman Resources
India Leadership Team
19
Makes people lives betterby powering a more prosperous world.
2020
Powering the Power House of the Nation
2121
Metro Station (Nearly 100 Stations)– New Delhi
2222
Amazon Warehouse- Hyderabad
2323
ISRO- Sriharikota
2424
Tirupathi- Tirumala City
2525
DLF- Cyber City- Gurugram
2626
Akshardham Temple- New Delhi
2727
Leh
2828
DEMUDEMU -
2929
SPART-Powered by N14 engines
3030
Mining Dump Truck ( Application ) Mining – Dump Truck
3131
Tata Hitachi 20T Excavator powered by our 6BTA – One of the largest selling excavators in India
32
Hyundai Rolex 210 - 21T Excavator Powered by our 6BTA Engine being used for Rock Breaking
3333
Construction – Liugong Wheel Loader powered by our QSB6.7 engine
3434
L&T KSM 303 – Surface Miner Powered by VTA 28
3535
Bore Wells
3636
Marine- SLNS Sayurala, the first Offshore Patrol Vessel (OPV) constructed by Goa Shipyard Ltd. for Sri Lankan Navy; Powered by 4 nos. VTA28 D(M) DG sets
3737
Marine- Surveillance Vessel for Indian Navy built at Hindustan Shipyard Ltd., Vizag; 3 vessels each powered by QSK60-DM DG set
3838
Oil & GasOil & Gas
39
CMI Inc. Growth StrategyCORE CAPABILITIES GROWTH PLATFORMS
NEW TECHNOLOGIES
Engine
Components
PowerSystems
Distribution
Technology Leadership
Scale Advantage
Distribution Network
Partnerships & Customers
Build on our strength in Powertrain
Data-Enabled Services
Leverage our Global
Distribution Channel
Increase Participation in Attractive
Markets
40
CIL Growth Strategy
Content Growth
Core New
CORE CAPABILITIES GROWTH PLATFORMS
CONTINUOUS IMPROVEMENT INITIATIVES(ACE, AMaZe, aSCent)
Power Generation
Distribution
Industrial
Export
Technology Leadership
Scale Advantage
Distribution Network
Partnerships & Customers
Telematics
Electrification
Advanced Analytics
Renewables
Alternate Fuels
Market Share Growth
New Products
4141
SCALE ADVANTAGE
4242
TECHNOLOGY LEADERSHIP
QSK 50
Advance Test Cells Marine
Silent Power Car
4343
DISTRIBUTION NETWORK
44
STRONG PARTNERSHIP AND CUSTOMERS
4545
CORE GROWTH
MARKET SHARE
CONTENT GROWTH NEW PRODUCTS
Rail Marine
Construction
Commercial Realty
Hospitality
Datacenters
CPCB III products
Gas Genset CEV- BS IV
Construction
4646
NEW GROWTH
TELEMATICS
RENEWABLES
ELECTRIFICATION
BATTERY TECHNOLOGY
ALTERNATE FUELS GAS ENGINE
CONNECTED AND ADVANCE ANALYTICS
FUEL CELL
47
Continuous Improvement initiatives
ACE AMaZe aSCeNt
Accelerated Cost Efficiency
Six Sigma
Accelerated Supply Chain Excellence and Transformation
Accelerated Move towards Zero
defects
48
Leadership
Our People Collaboration Diversity and Inclusion
49
Phaltan
Pune
JamshedpurDewas
Pithampur
Equivalent of 14000 + MT of carbon footprint avoided
9240 employees donated blood saving 27000+ lives
95,000+ trees Sustained
12000+ Million gallons water harvested
3.67 million students reached through Coach them Young
12 Model Villages sustained
TEC sites in Kolhapur and Phaltan sustained
CCEW in Pune in Nagpur1100+ students awarded Cummins Scholarship
Internal Use Only
and counting
People Positively Impacted
2,600clean cook stoves
Monsoon Resilient Maharashtra: Water conservation across 3,500 hectares, making 5,500 residents water secure
Income Generation Program for 80+ Women
Our Community
5050
Our Community Fort Cleaning
Water Conversation ,Model Town – Phaltan
Cummins College of Engineering
ITI Center Skill Development – Kolhapur
515151
DOMESTIC EXPORTS
Over a cycle of 5 Years
9-11%Over a cycle of 5 Years
0-5 %
52
Q+A
5353