The Power of Cummins 2014


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Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.

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  • Talking points
    This is the story of Cummins, the world’s largest engine maker headquartered in the small midwestern town of Columbus, Indiana; a company that has grown from its humble roots into a global manufacturing powerhouse.
  • Talking points
    Founded in 1919, the result of an unlikely partnership between a banker and an inventor, who shared a belief in the power of ideas and a vision for what ingenuity and hard work could achieve.
    The men were Clessie Cummins and W.G. Irwin, visionaries who saw the potential and power of the simple diesel engine.
    Here is some of the basic history:
    Cummins was founded in 1919 in Columbus Indiana, by mechanic Clessie Cummins and investor W. G. Irwin with the financial support from the Irwin family.
    As one of the 200 companies with the diesel license, Cummins took the available technology and transformed diesel into a reliable and everyday use of transformation power source.
    To promote the diesel engines, Cummins did a lot of creative events to let the world see the reliable power of diesel.
    Coast to coast bus tour powered by Cummins diesel engine in 1932 (started in New York and arrived in Los Angeles in 91 hours 10 min and burned only 365 gallons of fuel, which cost $21.90)
    Cummins car also ran in the Indianapolis 500 in early 1930s
    Clessie also drove a Cummins-powered Auburn car from New York to San Francisco in 1935 on $7.62 worth of fuel
    The Irwin family believed in diesel technology and understood the importance of taking the long view – that investing in innovative ideas take time.
    It took 18 years before Cummins earned its first profit - in 1937. And the rest, as we say, is history.
  • Talking points
    J. Irwin Miller was a visionary and a pioneer, bringing a humanitarian’s sensibilities to the business world. And in doing so he built a legacy that has carried over to this day.
    But let’s provide a little background on Mr. Miller:
    J. Irwin Miller is W.G. Irwin’s great-nephew and started his career with Cummins in 1934 as a general manager.
    He had a different background from traditional businessman. With his experience in U.S. Navy during WWII, Mr. Miller brought a new way of thinking to the company:
    Stakeholder model way of thinking (one of the very first companies in America) – which is stakeholders are more than shareholders, though shareholders are very important. The stakeholders include customers, employees, communities and suppliers – each has a vital interest in the health and success of the company. It is only in recent years that other companies are talking this way about their stakeholders.
    Unlike his contemporaries in the 1940s, he did not actively oppose unions. His position was employees could make a choice – chose not to join United Auto Workers but form own local union.
    Result was more harmonious relationship between company and the union organization.
    Mr. Miller believed that a business was only as strong as the communities where they are located.
    That forms the cornerstone of Cummins’ investments in its communities through the Cummins Foundation.
    Strong communities help business flourish.
    One of his greatest legacies was how he developed a program through the foundation to invest in world-class architects to design new buildings in Columbus.
    Today, our small midwestern city is known as the Athens of the Prairie for its architecture.
    Mr. Miller retired in 1977 and though he passed away in 2004, his influence is deeply felt to this day.
  • Talking points:
    (Background picture: Cummins Corporate Office Building in Columbus Indiana)
    The spirit of Mr. Miller early generation of leaders lives today in vision, mission and values.
    Cummins is a global powerhouse as employees throughout the world work to bring the vision to life.
    Our vision defines who we want to be – a company that makes peoples’ lives better through the work we do on the job or in our communities. It provides inspiration and direction and is aspirational.
    The mission offers a pathway to the vision.
    Helps to define each employee’s role in a company’s journey to success.
    Walk through our mission statements.
  • Talking points:
    Values continue to define who we are and how we live out our vision and mission.
    Integrity – do the right thing, no matter the cost
    Innovation – our creativity and ability to develop products and services ahead of the competition builds our success
    Delivering superior results – not just financial but provide products and services that are of the highest quality
    Corporate Responsibility – through this work we recognize that our communities are vital to the life our company
    Diversity – reflected in our commitment to treat all with dignity and respect everywhere we are located
    Global Involvement – we are a global business that happens to be headquartered in Southern Indiana
  • Talking points
    When we talk about sustainability, we are talking about building a company that lasts for our communities, for our employees, for our customers and suppliers, and for our shareholders.
    And sustainability is more than building cleaner-running engines or reducing waste at our facilities.
    It is building a record of strong financial performance.
    Even when sales declined, as in the recent recession, profitability remained strong and return to shareholders grew.
    That strong performance provides the financial resources to invest in our others areas of sustainability – our communities and the environment.
    J. Irwin Miller said a sustainable future requires a social responsibility, now known as Corporate Responsibility
    Growth requires focused engagement
    Every Employee Every Community - leverage our employees skills for the community’s benefit.
    62 percent participation
    221,646 employee hours
    27,605 employees participating
    Strategic Initiatives to connect employees skills with our business goals (Power to Prosper, Environmental Challenge, Technical Education for Communities)
  • Talking points
    We build a sustainable future through our people, products and practices
    Integral to our vision, mission and values is our approach to sustainability.
    Broad view of sustainability starts with strong financial performance
    Also means considering people, products and practices
    Through our people – building strong communities where we do business, building a diverse workforce
    Through our products – designing and building clean engines, remanufacturing to give a second life to the things we make and use
    Through our practices – designing buildings that are more efficient, recycling, developing generators that run on landfill gas
    Sustainability means we are building a business that will last at least another 100 years
  • Talking points
    We are defined by what we do and what we make
    We unleash the power of Cummins through the engines, generators and a range of related products
    Our products help deliver the food we eat, build the roads and bridges that carry us across our countries, and power our hospitals and schools when the lights go out.
    And we do it with products that are cleaner, more efficient and more dependable than anyone else.
  • Talking points
    But how do we do it? We deliver the power of Cummins through four complementary business units.
    Our four business units combine their products, people and processes in a way that adds value to all of our stakeholders.
    These four business units work together creating a whole that is greater than the sum of its parts:
    Engine Business – builds a range of diesel, natural gas and other engines for on-highway and off-highway applications around the world.
    Components – comprising turbo technologies, emission solutions, fuel systems, filtration and electronics - these are the components that are integrated into the engine to make it run with more power and cleaner
    Power Generation – designs, develops and manufactures products that provide everything from backup power to primary power and all of the accompanying systems. Cummins engines power the generators and Cummins components make them run cleaner and more efficiently.
    Distribution – the biggest customer-facing part of Cummins. Our distributors and dealers are based around the globe providing products, service and support to customers who rely on Cummins products for power.
    Separately, each is a strong and independent business with many of its own customers. Together, integrating innovative technologies with customer demands, they unleash the full power of Cummins.
  • Talking points
    And this shows the relative size of each business unit within Cummins.
    The Engine Business is the largest, delivering about half of all sales and profits
    Components, which provides the technology that makes the engines run cleaner and with more power, is a major supplier to the Engine business, though it has external customers who compete with EBU
    Power Generation provides standby and primary power to global customers
    And Distribution is the part of the business that supports new and existing customers
    Our company ranks 160 on the list of the Fortune 500 and our four complementary businesses combine to deliver $17.3 billion in revenue – making us the largest independent diesel engine company in the world
  • Talking points
    (Background picture: from the smallest engine powering mini, compact excavators to the biggest engine (hedgehog) powering oil and gas, mining equipment)
    This is a snapshot of our largest business – EBU. The first photo shows our smallest engine and our largest, our newest high horsepower engine being designed and built in Seymour, Indiana.
    While the number of engines we built in 2012 is down from the prior year, the result of a global slowdown, it is still an impressive number.
    And it means that Cummins engines are found in nearly every type of vehicle and equipment on earth -- from emergency vehicles to 18-wheelers, berry pickers to 360-ton mining haul trucks, from the mines of Brazil to the oil rigs of the Middle East
  • Talking points
    Cummins engines power the world in on-highway and off-highway applications.
    From tractor-trailers hauling US goods to market to buses transporting the people of Beijing across the city, Cummins makes engines that meet a range of on-highway needs.
    Off-highway our high horsepower engines power everything from farm to construction equipment.
    Our engines are in oil and gas rigs from the Texas to Dubai, in mining equipment, in military vehicles and trains, and in commercial and recreational boats
  • Talking points
    Power Generation - $3.3 billion in revenues in 2012.
    Worldwide provider of electrical generators and power generation systems, components and services in standby power, distributed power generation, as well as auxiliary power in mobile applications to meet the needs of a diversified customer base.
    Products include diesel and alternative-fueled electrical generator sets from 2.5 to 2,700 kW, alternators from 0.6 KVA to 30,000 KVA, transfer switches from 40 amps to 3,000 amps, paralleling switchgear and generator set controls.
    As a result, Power Gen provides a wide range of power solutions, from small generators that power recreational vehicles and boats to large systems that deliver power to small communities.
    Here is a little history:
    Cummins started out as a primary supplier to Onan, then a joint-venture partner.
    Cummins became the sole owner (purchasing all shares in 1992).
    Today, Onan has evolved into a division of Cummins Power Generation.
  • Talking points
    Cummins Power Generation has four sub-businesses – Power Products, Power Systems, Power Solutions and Generator Technologies
    Power Gen offer standby/emergency systems, multi–megawatt utility peaking facilities and sophisticated cogeneration applications.
    The power systems are not just integrated, but pre–integrated — because all of the components are designed and built to work together.
    The result? Smaller equipment footprints, reduced installation time and higher system reliability.
    They call it the power of One.
    Power product:
    Office buildings
    Gas stations
    Educational facilities
    Rental Fleets
    Residential and Commercial Properties
    Commercial Mobile
    Diesel generator sets below 1 MW
    Gas generator sets below 300 kW
    Diesel G-drives
    Low-end ATS
    Power Systems: Segments
    Data Centers
    Health Care
    Waste Water
    Rental Fleets
    Process Industry
    Integrated Power Systems
    Large Range Gensets above 1 MW
    Integrated Controls
    Power Transfer Solutions
    Protection & Switchgear
    Power Projects
  • Talking points
    Strategy of Components is to Be a market leader in the commercial engine and related technology components businesses with superior financial performance while supporting the success of Cummins business units and our people
    Second best year in 2012 with $4 billion in revenue
    Cummins is the technology leader in our industry.
    We have developed in-house expertise on the critical subsystems that drive engine performance, emissions, and fuel efficiency: combustion, fuel systems, air handling, electronic controls, emissions control equipment, and filtration.
    By having these capabilities in house and having our technical people work closely together, we integrate these technologies more effectively. Cummins consistently delivers components, engines and generator sets with better performance, at lower cost, and with better quality than anybody else even when we are all shooting for the same emissions standard.
    This is why our products were ready first for EPA 2002, 2007, and 2010 standards and had more miles with customers before the launch date.
    It is also why our 2010 HD engine will have industry leading fuel economy – 5-6% better than our industry leading 2007 product and as much as 9-10% better than an EGR-only approach.
    It is worth noting that for a heavy duty truck, 1% improvement in fuel economy is worth $600 per year per truck in operating savings.
    As emissions regulations spread around the world, Cummins technology has become more in demand and as an independent manufacturer we are in an ideal position to work with the leading players in each market.
    Even as many of these leading players make some of their own engines, they still need Cummins to ensure that they have the best technology to meet emissions with competitive costs and fuel economy.
  • Talking points
    Cummins has five businesses within Components to deliver integrated technology solutions:
    Emission Solutions
    Develop systems that produce lower levels of air pollutants while balancing the needs for better fuel efficiency and performance.
    With strategic partner, Faurecia Emissions Control Technologies, operate 75 manufacturing facilities with 15 engineering centers, spread across five continents and 23 countries.
    Turbo Technologies
    Designs and manufactures turbochargers and related products, on a global scale, for diesel engines above 3 liters.
    An integral part of a modern diesel engine, it delivers emissions reduction, increased power density and fuel economy and with new technology can deliver engine braking, Exhaust Gas Recirculation (EGR) and intake and exhaust noise reduction.
    Designs, manufactures and distributes heavy-duty air, fuel, hydraulic and lube filtration, chemicals and exhaust system technology products for diesel and gas-powered equipment.
    Fuel Systems
    Produces and remanufactures both unit injector and common rail systems,
    Develops and produces electronic controls systems for engines
  • Talking points
    The Distribution Business is the one segment that has more direct contact with the people and businesses who use our products and we have a business strategy that enables us to deliver the full power of Cummins wherever our customers are located.
    Our Distribution segment consists of more than 120 global distributors that include company-owned, Joint Venture, and independent distributors.
    They service and distribute the full range of our products and services to end-users at approximately 500 locations in approximately 70 distribution territories.
    Our company-owned distributors are located in key markets, including North America, Australia, Europe, the Middle East, India, China, Africa, Russia, Japan, Brazil and Singapore.
    Our joint venture distributors are located in North America, South America, Africa, China, Thailand, Singapore and Vietnam.
    We participate in 22 different application markets across the world. The Distribution segment consists of the following businesses which service and/or distribute the full range of our products and services: Parts and filtration, Power generation, Engines and Service.
  • Talking points
    Distribution is Cummins’ face to the customer.
    Provide solutions for customers, leveraging the full range of Cummins products in over 20 application segments
    Provide service and support through our extensive global distributor and dealer network of factory trained technicians
    Provide training to dealers and employees to ensure the customer sees one Cummins when interacting with our Company
    Also, DBU engineers, manufactures and delivers products fit for the market as well as train, develop and manage dealers.
    DBU adds value to the channel, we don’t just own a bunch of distributors.
    We have grown globally in terms of countries, distributor and dealer locations, employees and sales.
  • Talking points
    We are a company with a strong global footprint with capabilities in all regions of the world.
    We are able to deliver high quality support and service where our customers are located.
  • Talking points
    (Picture background: Cummins’ products and services are present almost everywhere in the world. You see buses on the roads in China and India powered by our engines; you see Cummins’ manufacturing plants and service centers in different parts of the world; you also see our employees supporting customers globally; our footprints are in people’s everyday lives and made the world a better place)
    Cummins strong global position gives it extensive reach - 190 countries, more than 600 distributors and branches, 6,500 dealers, that was built over decades.
    We manufacture Cummins products on 6 continents
    This kind of global presence gives us fortified positions in key markets
    Our global position allows us to understand the local markets and the challenges our customers face
    Our fit for market approach allows us to tailor solutions for customers in their individual markets.
  • Key Message:
    Our global partnerships with our customers and the businesses in our joint ventures
    Our complimentary business model also help us to customize solutions to our customers;
    Engine Business develops products to cater big companies like Dodge while smaller companies are services through our distribution system. (as part of our multi-national to global message)
    Our largest customers include: Paccar…
    We are the exclusive supplier for the Dodge Ram Heavy Duty Truck
    We have built partnerships with the leading truck manufacturers in China and India including Dongfeng (Largest Heady-Duty and Medium-Duty truck manufacturer), Foton (Largest light-duty truck manufacturer) and Tata (Largest truck manufacturer in India)
    We established technology JVs with Westport to extend our capability with natural gas engines and fuel systems.
    New JV in 2012: Guangxi Cummins Industrial Power Co. Ltd and Hyundai Cummins Engine Company
  • Talking points
    None of our success as a growing global business is possible without our 46,000 employees who work in markets throughout the world.
  • Talking points
    Cummins is only as dependable as the people who work on our products and support our customers.
    The quality and commitment of Cummins’ employees sets us apart from other company.
    They embody the message – “I am Cummins, you can depend on me.”
  • Talking points
    (Background picture: our Columbus Engine Plant (CEP) is one of our oldest plants and was built around a two-story civil war era house purchased by Clessie Cummins and W.G. Irwin. It will produce the new Nissan Titan pickup trucks engines)
    We have been recognized by national and international organizations for our employees and Cummins’ unique working culture:
    Named one of the World’s Most Ethical Companies by the Ethisphere in 2013 for six years in a row. The Institute evaluates companies’ commitment to ethical leadership, compliance practices and corporate responsibility.
    For the eighth straight year, Cummins was awarded a perfect score in the 2013 Corporate Equality Index by the Human Rights Campaign (HRC) as part of its Best Places to Work initiative. The ratings were announced in December 2012 by HRC, the largest U.S. civil rights organization for lesbian, gay, bisexual and transgender employees.
    Glassdoor Inc., a website that ranks employers, named Cummins to its annual list of the “Best Places to Work” in December 2012. Cummins ranked 20th on the list which is developed from anonymous employee feedback and input from employers.
    There are a lot more to list…
  • Talking points
    The Business Case sets four key goals for the Company to derive the greatest benefit from diversity.
    Create a workplace population with representation that is similar to the markets in which it operates.
    Demand that the workplace is safe and inclusive for all individuals and organizations.
    Develop a collective behavior that encourages all individuals and employees to best use their talents.
    Capitalize on a diverse workforce to enhance the Company’s competitive position in the marketplace.
    The final section of the Business Case highlights the strategic advantages of diversity: Attract and retain the best talent.
    Create a safe and inclusive work environment that fosters innovation.
    Promote differing viewpoints to enhance problem solving and decision-making.
    Develop a positive reputation in our communities.
    Create a safe and welcoming culture for our employees.
  • Talking points
    We have a long history of Corporate Responsibility in Cummins.
    Our view on the CR business case is embodied J. Irwin Miller’s statement from the 1970s that says CR is as important as the products that we design and engines we sell.
    That is why Corporate Responsibility is one of our six core values.
    This is the basis for both the stakeholder model that we embrace and how we define CR in our values statements.
    Corporate Responsibility helps make our business more sustainable by focusing on solving problems in our communities – the same problems that serve as barriers to our growth: lack of educated workforce, lack of access to modern energy services, and focusing on our commitment to the environment and environmentally sound business practices.
  • Talking points
    (Background picture: In April 2012. The Corporate Responsibility team all traveled to India for a global conference. This picture was taken at the Megasite in Phaltan. Jean Blackwell planted the tree on the grounds and then watered it)
    Cummins focuses its resources on three global priority areas critical to healthy communities:
    Education - Improving the quality and alignment of educational systems to ensure that the students of today are ready for the work force of tomorrow.
    Environment - Ensuring that everything we do leads to a cleaner, healthier and safer environment.
    Social Justice/Equality of Opportunity - Increasing opportunity and equity for those in need.
    CR and the Cummins Foundation are investing resources in three strategic initiatives that connect our business goals with our employees’ technical skills and passions. These programs help remove potential barriers to company growth and hold the promise of driving immense change, particularly in emerging markets.
    Technical Education for Communications (TEC) – TEC is a global program that aims to increase access to good jobs through local vocational education programs. Ultimately, TEC seeks to develop a replicable model that will increase the employment base in communities globally.
    Power to Prosper - Across the world, 1.4 billion people lack access to electricity, 85 percent of whom live in rural areas. We’ve launched a global rural electrification initiative with the Cummins Foundation, using our technical expertise and position as a global power leader to bring income-generating power to underserved rural communities.
    Environmental Challenge - Led by executive sponsor Lisa Yoder, the Challenge harnesses the knowledge, skills, and interests of employees. Each year, CITs worldwide implement great environmental projects and the 15 best are recognized with a $10,000 award to give to the community partner of their choice. In 2012, employees submitted 109 projects, spent 80,000 hours on projects that eliminated 4,300 tons of greenhouse gas.
  • Talking points
    (Background picture: This is a winning 2012 Environmental Challenge project in Guarulhos, Brazil. Employees created an “ecological aisle” to connect two major urban parks)
    2012 was a year of record engagement as employees around the world took time from their work days to devote to community improvement projects
    Employees can contribute at least four hours on company time to their communities.
    221,686 employee hours
    27,605 employees participating
    62 percent participation in 2012
    Community Involvement Teams link communities with primary onsite coordinators for community involvement initiatives.
    In 2007, we had 34 CITs, with only five located in the U.S.
    At the end of 2012, we had a total of 218 globally.
    Community Impact Six Sigma (CISS) uses business tools/skills (Six Sigma) to help communities improve an identified need.
    In 2012, the company closed 106 CISS projects (company goal was 74 projects).
    Through the North American United Way matching gifts program, employee donations together with the Foundation match totaled $5.28 million with 50 percent participation in 2012.
    Programs have also been launched in China, India, and parts of Asia-Pacific region.
  • Please add/replace Global Recognitions with local awards.
    Talking points
    (Background picture: This is a winning 2012 Environmental Challenge project in Guarulhos, Brazil. Employees created an “ecological aisle” to connect two major urban parks)
    Cummins and its employees have constantly been recognized for investment in the communities.
    Cummins was named in September to the Dow Jones Sustainability Index for an eighth consecutive year. The index represents the top 10 percent of the world’s most sustainable companies rated by Dow Jones over a range of economic, environmental and social responsibility factors.
    Cummins finished 25th on the Civic 50, a list of the companies that “best use their time, talent and resources to improve the quality of life in their local communities and beyond” in November 2012. The list is compiled by Bloomberg, the National Conference on Citizenship and the Points of Light foundation.
    Cummins was also named to Newsweek’s Top 500 “Green Rankings” list announced in October 2012. The Company finished 64th in the magazine’s U.S. rankings and 134th in the global rankings. That was up 108 spots over the Company’s ranking in 2011.
  • Talking points
    Cummins has a rich history of innovation from the days of Clessie Cummins to today.
    Clessie Cummins (1888-1968) was awarded more than 30 patents in areas ranging from Fuel Systems to engine brakes and most of those came as he was also running the company.
    After escaping Communist Hungary, Dr. Julius Perr (1931-2005), Cummins' most prolific inventor, submitted more than 300 patents on engine application improvements over his more than 40 year career at Cummins, including 80 patents that are still in use today.
    Dr. Alyn Lyn (1917-2010), not only helped Cummins enter his native China in the 1970s and 1980s, he was a pioneer in detailed combustion modeling which became the foundation for the Analysis Led Design program the company uses today. That computer modeling program allows engineers to study an almost limitless variety of approaches before going to the expense of using a real engine in a test cell.
    The Company's breakthrough XPI Fuel System, built on the work of Clessie Cummins and Julius Perr to deliver fuel to the combustion chamber at pressure levels far exceeding what the Company's competitors could deliver. This enabled cleaner, more complete combustion.
    Cummins achieved many advances in Variable Geometry Turbochargers, a key engine component that not only improves engine performance and power but also helps reduce harmful engine emissions. While other VGTs have many moving parts in controlling the flow of hot gas, Cummins' VGT has one moving flow control surface. As a result of the added durability of Cummins' design, the Company has a more than 90 percent share of the heavy-duty VGT market today.
    Cummins is the only company that produces all of the critical subsystems required to build an engine or genset in-house. The Company's experience with making components work together has established Cummins as the industry leader in systems integration.
    The past 20 years have seen amazing changes in diesel engines and at Cummins as government agencies like the U.S. Environmental Protection Agency required increasingly lower emissions from diesel engines.
    The transformation really started picking up steam in 1997 when the EPA and the Department of Justice accused manufacturers of heavy duty diesel engines, including Cummins, of disengaging the emission control features during certain driving conditions.
    Cummins vehemently denied these accusations, but rather than waging a long and costly legal fight the Company decided to embrace regulations, believing Cummins' technical expertise would give the Company a competitive advantage.
    Cummins became the only manufacturer to commit to meeting a new emission standards 15 months early. It was tough, but in 2002, the Company did it!
    Systems to treat engine emissions after combustion soon followed along with innovations in fuel systems and turbochargers as well as advances in electronic controls capable of getting all of these components to work together in extremely precise ways to reduce emissions
    Through the development of Cooled Exhaust Gas Recirculation (2002), Diesel Particulate Filters (2007) and Selective Catalytic Reduction (2010), Cummins cemented its technical leadership in the diesel engine industry. Unable to match Cummins in meeting the EPA's regulations, some engine makers decided to leave the on-highway market.
  • Investing in technology, research and development is an investment in Cummins’ future.
    In 2012, a year when the company saw markets soften worldwide, more than $700 million was invested in research and development. In fact, that investment was up 16 percent from 2011.
    Cummins decided more than a decade ago to embrace rather than fight clean air standards – the technology has proven to be a critical differentiator as we have led the way in reducing particulate matter and NOx emissions to near zero levels. In 2012, Cummins was the first engine maker to meet new EPA greenhouse gas standards. We have reduced emissions from diesel engines to near zero – that includes particulate matter and NOx.
    Customers could count on Cummins to deliver clean, sustainable and dependable technology.
  • The Company’s commitment to innovation is reflected in the number and range of products it consistently brings to market.
    Since January 2012, the Company has introduced more than 60 new and updated products including engines, components and power generation systems. Here are some highlights
    In 2012, EBU launched new or updated products to meet ever-tightening emission requirements in the US, including a more powerful engine for the Ram pickup truck, ISX12 and ISX15 engines, both EPA 2013 certified, ISB6.7 for marine applications; QSB 4.5 and QSB 6.7 for China; QSB, QSF2.8 and ISLG in Brazil; and announced development of two new natural gas engines to meet growing demand for those products.
    Filtration: Range of filtration products to meet customer needs, including: the NanoNet filter for midrange and some HD engines, that filters more harmful particles than ever; Direct Flow Air Filtration System for Cummins for the following applications - QSB 3.3 & QSB 4.5 engine families and the QSX 11.9 & 15L HD Vulcan engine; Direct Flow Air Filtration System program created specific solutions for Bobcat and Komatsu and Cummins Filtration displaced Donaldson as the air filtration production supplier to Ford/Navistar for the F650 and F750 which are based on the Cummins ISB 6.7L engine; a replacement Fuel Water Separator cartridge with improved water separation performance for the Chrysler Ram truck; a heated Crankcase Ventilation System for Komatsu
    Emission Solutions – selective catalytic reduction (SCR) dosing systems for North American and European markets with improved reliability - one developed at CMHF; EPA 2013 combination system of DOC+DPF and SCR for North America, On-highway and manufactured with FECT in Mineral Point, Wisc.; and EURO V, SCR Technology for engines ISF 2.8 up to ISM for on-highway markets in Brazil manufactured jointly by FECT and CES in Brazil.
    CTT – Holset VGT for Euro 6 Engine Launch in ISB4.5 and 6.7 engines
    Power Generation
    A series of new and updated gensets to meet changing emission standards:
    The Raven genset platform for global consumers markets is a Commercial Mobile 5.5-7Kw updated with an After-treatment System to meet the EPA Phase III and CARB Tier III emissions standards.
    The Roadrunner genset - the 10/12QD RV & CM Gensets revised to meet EPA tier4 emission regulations
    AMMPS - Develop & supply next generation of Advanced Medium Mobile Power Sources (AMMPS), replacing aging, currently fielded, like-size generator sets with high Operations and Support (O&S) sets, in both skid and trailer mounted configurations. Sizes - 5, 10, 15, 30 & 60kw generators with single and multiple generator mounted trailer capability. They are 50/60 & 400 Hz
    Rhino – The new genset that meets emissions levels to achieve EPA NR- G Phase III
    S 3.8 International spec - Genset product that is competitive that meets the international spec for both genset and coolpac at 44-66 KVA range (50hz) and 40-60Kw range (60hz) for global consumer market
    B3.3 30 to 40Kw – replaces the Tier 2 engine with Tier 4i engine
    COHO – marine product offered outside North America as identified by Regional Business Leaders, includes Six Genset nodes from 7 to 19kW in 50Hz only
    URJA 6B – a cost effective international spec genset for the 90 - 175 KVA range from PGI using TCL manufactured 6B engines for the EMEA & rest of Asia stationary market.
    DELTA 1 – Replacement of PCC3100 controller with PC3.3 to prevent a product gap with the KTA 38,50, VTA 28, QST 30 HHP gensets.
    Sockeye – DMC 1500 PowerCommand® Paralleling System, a digital master control for low or medium voltage applications is a microprocessor-based paralleling system designed to directly interface with Cummins Power Generation PowerCommand paralleling generator sets, automatic transfer switches and switchgear. The DMC 1500 allows factories or other large facilities to seamlessly operate multiple generators with no disruption of power. This has been nominated for an award as best in class.
  • Talking points
    Innovation continues
    In the first quarter of 2013, for example, Cummins launched two new off-highway engines, the QSF3.8 (used in mini excavator) and the QSM12 (used in construction/port machinery) for the off-highway market, at a trade show in Munich
    Cummins launched and the new marine version of the QSB6.7 during boat shows in Miami and Shanghai.
    Cummins introduced new turbochargers – need more information about these
    That same quarter, the Company unveiled a new powertrain package developed jointly with Eaton that is expected to deliver a 3 to 6 percent fuel economy improvement as well as a suite of near-market and future turbochargers capable of improving fuel efficiency by at least 6 percent.
  • Talking points
    Meeting emissions standards drove our innovation over the past 20 years.
    They are now approaching new zero levels in mature markets so we need to push ourselves to be more focused on our customers and anticipating what they will need to succeed in an increasingly competitive global marketplace.
    John Wall is leading the way to a market-focused approach to innovation – innovation you can depend on.
    This strategy is built around the following:
    Customers Depend on Cummins to be the Innovation Leader
    Deliver innovative products and services frequently and fast
    Partner effectively with our customers to see where we must be in the future.
    Learn to develop market insight
    Serve and integrate systems for current customers better than anyone else while attracting new customers with new products and services
    Business and Technical Leaders work together to Champion Innovation
    Create a strategic vision of the future
    Synthesize insights from customers, suppliers, employees and markets
    Link market opportunities to new technology ideas
    Create safe space for innovation: Fund and connect personally with exploratory ideas
    Empowered employees deliver innovative products and services
    Develop insights and offer ideas in areas of expertise
    Link new technology ideas to customers
    Flawlessly integrate with customer systems
    Cultivate internal and external connections
  • Talking points
    Through our products
    Our people
    Our global network
    Our innovation
    We unleash the full power of Cummins
  • The Power of Cummins 2014

    1. 1. The Power of Cummins 2014
    2. 2. Founded in 1919 by Clessie Cummins and W.G. Irwin Pioneered the development of diesel engines Promoted diesels as a reliable source of power Earned its first profit in 1937 A Rich History Rooted in Innovation The Power Of Cummins
    3. 3. A transformative and visionary leader The Power Of Cummins J. Irwin Miller Era Embraced stakeholder model Laid foundation for future global growth Integrated values into the fabric of our business
    4. 4. Making people’s lives better by unleashing the Power of Cummins.Vision: • Motivating people to act like owners working together. • Exceeding customer expectations by always being first to market with the best products. • Partnering with our customers to make sure that they succeed. • Demanding that everything we do leads to a cleaner, healthier, safer environment. • Creating wealth for all stakeholders. Mission: The Power Of Cummins
    5. 5. Values • Integrity: Strive to do what is right and do what we say we will do. • Innovation: Apply the creative ingenuity necessary to make us better, faster, first. • Delivering Superior Results: Exceed expectations, consistently. • Corporate Responsibility: Serve and improve the communities in which we live. • Diversity: Embrace the diverse perspectives of all people and honor with both dignity and respect. • Global Involvement: Seek a world view and act without boundaries. The Power Of Cummins
    6. 6. 1 EBIT excludes restructuring charges in 2009, and the gains from the divestiture of two businesses and flood insurance recovery are excluded from 2011. Also, Q2‘12 EBIT excludes $6 million pre-tax additional gain from the divestiture of two businesses in 2011, and Q4’12 EBIT excludes $52 million in restructuring charges. Build a sustainable future for all stakeholders Profitable Growth The Power Of Cummins Steady Financial Growth Strong Shareholder Return EBIT Sales and EBIT Sales Shareholder Return CMI Peer
    7. 7. Sustainability The Power Of Cummins Meeting clean air standards with technology-leading engines and related products Creating a smaller global footprint by recycling, reducing and reusing in our buildings and communities Building strong communities throughout the world with a diverse workforce People Products Practices
    8. 8. Cummins delivers power through our products The Power Of Cummins
    9. 9. Global Power Leader Distribution Business Power Generation Business Components Business Engine Business Complementary Businesses The Power Of Cummins
    10. 10. 2013 Revenue: $17.3 billion Engine 48% Power Generation 14% Distribution 18% Components 20% Complementary Businesses The Power Of Cummins
    11. 11. Engine Business in sales in 2013 Engines in 2013 Broad range of products in every global market The Power Of Cummins
    12. 12. Engine Business Market Applications The Power Of Cummins Heavy-Duty Truck Medium-Duty Truck & Bus Light-Duty Automotive&RV Mining, Marine, Oil&Gas, Government Construction & Agriculture Stationary Power
    13. 13. Power Generation Business in sales 2 kW-2,750 kW power systems from Pre-integrated one one The Power Of Cummins
    14. 14. Lines of Business Power Generation Business The Power Of Cummins Power Systems Power Solutions Generator Technologies Power Generation Business Power Products
    15. 15. Components Business in sales businesses Integrated Key technologies for meeting global emission standards The Power Of Cummins Components Business
    16. 16. Lines of Business Components Business The Power Of Cummins
    17. 17. Distribution Business in sales globaldistributors Delivering products andservice throughmore than direct link The Power Of Cummins
    18. 18. Distribution Business through our extensive global distributor and dealer network of factory trained technicians to dealers and employees to ensure the customer sees one Cummins when interacting with our Company for customers, leveraging the full range of Cummins products in more than 20 application segments The Power Of Cummins Provide solutions Provide service and support Provide training Distribution Business
    19. 19. Cummins delivers power through our network The Power Of Cummins
    20. 20. Global Presence The Power Of Cummins Employees worldwide 48,000190+Countries and territories Develop, design and manufacture products on 6continents
    21. 21. U.S. 52% Europe/ Middle East 16% Mexico/Latin America 10% China 7% Asia Pacific 10% India 4% Africa 1% U.S. 52%Outside U.S. 48% 2013 Global Sales The Power Of Cummins
    22. 22. We deliver products and services to worldwide customers. Global Partnerships The Power Of Cummins v
    23. 23. Customer Support Excellence The Power Of Cummins Customer Success. Every Time Strong global network Same level of support and services Customers’ success = Cummins’ success Customer Support Excellence
    24. 24. Cummins delivers power through our employees The Power Of Cummins
    25. 25. Our employees are the reason for our success. Their hard work, innovation and agility have made Cummins the company it is today. --- Tom Linebarger, Chairman & CEO Our People The Power Of Cummins
    26. 26. Embrace the diverse perspectives of all people and honor with both dignity and respect Diversity The Power Of Cummins Creates an environment where innovation and ideas flourish Builds a workforce that reflects the communities where Cummins does business Encourages all employees to use their best talents Diversity
    27. 27. Serve and improve the communities in which we live While some still argue that business has no social responsibility, we believe that our survival in the very long run is as dependent upon responsible citizenship in our communities and in the society, as it is on responsible technological, financial and production performance. --- J. Irwin Miller Corporate Responsibility The Power Of Cummins
    28. 28. Corporate Responsibility The Power Of Cummins Focused Engagement: Strategic Initiatives: Power to Prosper TEC: Technical Education for Communities Environment Education Social Justice/ Equality of Opportunity
    29. 29. 2013 Engagement Corporate Responsibility The Power Of Cummins 3 Recorded volunteer hours globally 0 8 7 8 3 Every Employee, Every Community Cummins Environmental Challenge employees invested 64,682 hours trees planted or saved tons of garbage diverted from landfills tons of greenhouse gas reduced Corporate Responsibility
    30. 30. The Power Of Cummins Recognition Scored perfect in Corporate Equality Index by Human Rights Campaign for the 9th straight year in 2014 Named one of the World’s Most Ethical Companies by the Ethisphere in 2014 for 7 years in a row Listed Dow Jones Sustainability Index for an 9th consecutive year Ranked in Newsweek’s Top 500 “Green Rankings Listed in Bloomberg’s Civic 50 Ranked No.15 for Top Diversity Companies by DiversityInc. for the seventh consecutive year
    31. 31. Cummins delivers power through innovation The Power Of Cummins
    32. 32. Legacy of Innovation Emission History: challenge becomes opportunity The Power Of Cummins EPA regulates commercial vehicles. EPA alleges industry “cycle beating controls”. Signed consent decree . Cummins decided to commit to the deadline. 1st company to meet the 2010 emission standards. SuperTruck achieves important milestone.
    33. 33. Investing in the Right Technologies The Power Of Cummins $700M R&D investment Emission Standards Focused on delivering technology that is clean sustainable dependable
    34. 34. Innovation in 2013 The Power Of Cummins To meet greenhouse gas standards Fit For Market New and updated Products Innovation in 2013
    35. 35. Innovations The Power Of Cummins ISG QuietConnect & PowerConnect 5.0L V8 Turbo Diesel ISB 6.7 FFM SCR System QSK95 for Rail Innovations
    36. 36. We need to know our markets and individual customers better than anyone else. We need to know our technologies better than anyone else and we need to be able to combine those so we can continue to differentiate our products in the eyes of our customers. ----John Wall, Chief Technology Officer Customer-focused Innovation The Power Of Cummins
    37. 37. The Power Of Cummins The Power of Cummins