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Global mkt   this is cpg - final extended version - april2013
 

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  • InternationalSales outside the United States have been accounting for about 60 percent of the Company’s revenues in recent quarters.More Cummins Employees work outside the United States than Inside.Manufacturing Facilities:United States:Columbus – ISB6.7Seymour – K19 / V903 / QSK19 & QST30 (JV)Jamestown – ISX12 / ISX15Rocky Mount – B / C series, ISB6.7 / ISC8.3 / ISL9,ISL G, QSB / QSC / QSLCharleston – Marine EnginesClovis – CNGMemphis – ReConMexico:San Luis Potosi – ReCon Engines - B / C Series, L10 / M11 / N14 / K19, ISB / ISC / ISL / ISM / ISXBrazil:Sao Paulo – B / C series, N14, ISB / ISMUnited Kingdom:Cumbernauld - ReCon Engines - B / C / M11 / NT / N14 / K19 / QSK19, ISB / ISCDarlington – B / C series,ISB / ISC / ISL, QSB / QSCDaventry – K / QSK / QSVTurkey:Izmir – B / C series (Lic)China:Chongqing – M / N / K (JV)Xiangfan – B / C series (JV)Beijing – 2.8 / 3.8L (JV)Xi’an – M (JV)IndiaPune – C / N / K19 / V28 /K38/50 / QSK60Jamshedpur – B-series (JV)JapanOyama – B / C series (JV)
  • InternationalSales outside the United States have been accounting for about 60 percent of the Company’s revenues in recent quarters.More Cummins Employees work outside the United States than Inside.Manufacturing Facilities:United States:Columbus – ISB6.7Seymour – K19 / V903 / QSK19 & QST30 (JV)Jamestown – ISX12 / ISX15Rocky Mount – B / C series, ISB6.7 / ISC8.3 / ISL9,ISL G, QSB / QSC / QSLCharleston – Marine EnginesClovis – CNGMemphis – ReConMexico:San Luis Potosi – ReCon Engines - B / C Series, L10 / M11 / N14 / K19, ISB / ISC / ISL / ISM / ISXBrazil:Sao Paulo – B / C series, N14, ISB / ISMUnited Kingdom:Cumbernauld - ReCon Engines - B / C / M11 / NT / N14 / K19 / QSK19, ISB / ISCDarlington – B / C series,ISB / ISC / ISL, QSB / QSCDaventry – K / QSK / QSVTurkey:Izmir – B / C series (Lic)China:Chongqing – M / N / K (JV)Xiangfan – B / C series (JV)Beijing – 2.8 / 3.8L (JV)Xi’an – M (JV)IndiaPune – C / N / K19 / V28 /K38/50 / QSK60Jamshedpur – B-series (JV)JapanOyama – B / C series (JV)
  • InternationalSales outside the United States have been accounting for about 60 percent of the Company’s revenues in recent quarters.More Cummins Employees work outside the United States than Inside.Manufacturing Facilities:United States:Columbus – ISB6.7Seymour – K19 / V903 / QSK19 & QST30 (JV)Jamestown – ISX12 / ISX15Rocky Mount – B / C series, ISB6.7 / ISC8.3 / ISL9,ISL G, QSB / QSC / QSLCharleston – Marine EnginesClovis – CNGMemphis – ReConMexico:San Luis Potosi – ReCon Engines - B / C Series, L10 / M11 / N14 / K19, ISB / ISC / ISL / ISM / ISXBrazil:Sao Paulo – B / C series, N14, ISB / ISMUnited Kingdom:Cumbernauld - ReCon Engines - B / C / M11 / NT / N14 / K19 / QSK19, ISB / ISCDarlington – B / C series,ISB / ISC / ISL, QSB / QSCDaventry – K / QSK / QSVTurkey:Izmir – B / C series (Lic)China:Chongqing – M / N / K (JV)Xiangfan – B / C series (JV)Beijing – 2.8 / 3.8L (JV)Xi’an – M (JV)IndiaPune – C / N / K19 / V28 /K38/50 / QSK60Jamshedpur – B-series (JV)JapanOyama – B / C series (JV)
  • InternationalSales outside the United States have been accounting for about 60 percent of the Company’s revenues in recent quarters.More Cummins Employees work outside the United States than Inside.Manufacturing Facilities:United States:Columbus – ISB6.7Seymour – K19 / V903 / QSK19 & QST30 (JV)Jamestown – ISX12 / ISX15Rocky Mount – B / C series, ISB6.7 / ISC8.3 / ISL9,ISL G, QSB / QSC / QSLCharleston – Marine EnginesClovis – CNGMemphis – ReConMexico:San Luis Potosi – ReCon Engines - B / C Series, L10 / M11 / N14 / K19, ISB / ISC / ISL / ISM / ISXBrazil:Sao Paulo – B / C series, N14, ISB / ISMUnited Kingdom:Cumbernauld - ReCon Engines - B / C / M11 / NT / N14 / K19 / QSK19, ISB / ISCDarlington – B / C series,ISB / ISC / ISL, QSB / QSCDaventry – K / QSK / QSVTurkey:Izmir – B / C series (Lic)China:Chongqing – M / N / K (JV)Xiangfan – B / C series (JV)Beijing – 2.8 / 3.8L (JV)Xi’an – M (JV)IndiaPune – C / N / K19 / V28 /K38/50 / QSK60Jamshedpur – B-series (JV)JapanOyama – B / C series (JV)
  • InternationalSales outside the United States have been accounting for about 60 percent of the Company’s revenues in recent quarters.More Cummins Employees work outside the United States than Inside.Manufacturing Facilities:United States:Columbus – ISB6.7Seymour – K19 / V903 / QSK19 & QST30 (JV)Jamestown – ISX12 / ISX15Rocky Mount – B / C series, ISB6.7 / ISC8.3 / ISL9,ISL G, QSB / QSC / QSLCharleston – Marine EnginesClovis – CNGMemphis – ReConMexico:San Luis Potosi – ReCon Engines - B / C Series, L10 / M11 / N14 / K19, ISB / ISC / ISL / ISM / ISXBrazil:Sao Paulo – B / C series, N14, ISB / ISMUnited Kingdom:Cumbernauld - ReCon Engines - B / C / M11 / NT / N14 / K19 / QSK19, ISB / ISCDarlington – B / C series,ISB / ISC / ISL, QSB / QSCDaventry – K / QSK / QSVTurkey:Izmir – B / C series (Lic)China:Chongqing – M / N / K (JV)Xiangfan – B / C series (JV)Beijing – 2.8 / 3.8L (JV)Xi’an – M (JV)IndiaPune – C / N / K19 / V28 /K38/50 / QSK60Jamshedpur – B-series (JV)JapanOyama – B / C series (JV)
  • InternationalSales outside the United States have been accounting for about 60 percent of the Company’s revenues in recent quarters.More Cummins Employees work outside the United States than Inside.Manufacturing Facilities:United States:Columbus – ISB6.7Seymour – K19 / V903 / QSK19 & QST30 (JV)Jamestown – ISX12 / ISX15Rocky Mount – B / C series, ISB6.7 / ISC8.3 / ISL9,ISL G, QSB / QSC / QSLCharleston – Marine EnginesClovis – CNGMemphis – ReConMexico:San Luis Potosi – ReCon Engines - B / C Series, L10 / M11 / N14 / K19, ISB / ISC / ISL / ISM / ISXBrazil:Sao Paulo – B / C series, N14, ISB / ISMUnited Kingdom:Cumbernauld - ReCon Engines - B / C / M11 / NT / N14 / K19 / QSK19, ISB / ISCDarlington – B / C series,ISB / ISC / ISL, QSB / QSCDaventry – K / QSK / QSVTurkey:Izmir – B / C series (Lic)China:Chongqing – M / N / K (JV)Xiangfan – B / C series (JV)Beijing – 2.8 / 3.8L (JV)Xi’an – M (JV)IndiaPune – C / N / K19 / V28 /K38/50 / QSK60Jamshedpur – B-series (JV)JapanOyama – B / C series (JV)
  • InternationalSales outside the United States have been accounting for about 60 percent of the Company’s revenues in recent quarters.More Cummins Employees work outside the United States than Inside.Manufacturing Facilities:United States:Columbus – ISB6.7Seymour – K19 / V903 / QSK19 & QST30 (JV)Jamestown – ISX12 / ISX15Rocky Mount – B / C series, ISB6.7 / ISC8.3 / ISL9,ISL G, QSB / QSC / QSLCharleston – Marine EnginesClovis – CNGMemphis – ReConMexico:San Luis Potosi – ReCon Engines - B / C Series, L10 / M11 / N14 / K19, ISB / ISC / ISL / ISM / ISXBrazil:Sao Paulo – B / C series, N14, ISB / ISMUnited Kingdom:Cumbernauld - ReCon Engines - B / C / M11 / NT / N14 / K19 / QSK19, ISB / ISCDarlington – B / C series,ISB / ISC / ISL, QSB / QSCDaventry – K / QSK / QSVTurkey:Izmir – B / C series (Lic)China:Chongqing – M / N / K (JV)Xiangfan – B / C series (JV)Beijing – 2.8 / 3.8L (JV)Xi’an – M (JV)IndiaPune – C / N / K19 / V28 /K38/50 / QSK60Jamshedpur – B-series (JV)JapanOyama – B / C series (JV)
  • InternationalSales outside the United States have been accounting for about 60 percent of the Company’s revenues in recent quarters.More Cummins Employees work outside the United States than Inside.Manufacturing Facilities:United States:Columbus – ISB6.7Seymour – K19 / V903 / QSK19 & QST30 (JV)Jamestown – ISX12 / ISX15Rocky Mount – B / C series, ISB6.7 / ISC8.3 / ISL9,ISL G, QSB / QSC / QSLCharleston – Marine EnginesClovis – CNGMemphis – ReConMexico:San Luis Potosi – ReCon Engines - B / C Series, L10 / M11 / N14 / K19, ISB / ISC / ISL / ISM / ISXBrazil:Sao Paulo – B / C series, N14, ISB / ISMUnited Kingdom:Cumbernauld - ReCon Engines - B / C / M11 / NT / N14 / K19 / QSK19, ISB / ISCDarlington – B / C series,ISB / ISC / ISL, QSB / QSCDaventry – K / QSK / QSVTurkey:Izmir – B / C series (Lic)China:Chongqing – M / N / K (JV)Xiangfan – B / C series (JV)Beijing – 2.8 / 3.8L (JV)Xi’an – M (JV)IndiaPune – C / N / K19 / V28 /K38/50 / QSK60Jamshedpur – B-series (JV)JapanOyama – B / C series (JV)
  • Cummins Inc.Sales of $17.3 billion in 2012Over 950,000 engines built in 2012Increasingly global business portfolioStrengthsThe world’s largest independent manufacturer of diesel enginesGlobal manufacturing Broadest and most capable distribution and customer support networkPowering more types of equipment in more markets than any other engine companyStrong global positionThis is CumminsSustainable growthEmissions leadershipLong term strategic partnershipsDiverse product line across marketsLargest and most capable service and support network
  • Key Message: Cummins is a diversified global power leader, comprised of four business segmentsEBU: on- & off-highway applications; Midrange, heavy-duty & HHP engines from 2.8 to 95 liters and 49 to 4200 horsepower.The Engine Business Unit made up 50% of Cummins revenue in 2012.PGBU: global provider of power generation systems, components and services from 5 kW to 2,750 kW; leading supplier of alternators from 0.6 to 30,000 kVA15% of Cummins revenue in 2012.Components: filtration, aftertreatment, turbochargers and fuel systems; key technologies for meeting stringent emission standards and for delivering customer value19% of Cummins revenue in 2012.Distribution: retail and wholesale of engines and power generation equipment; parts and service for engines; business solutions for end-user requirements16% of Cummins revenue in 2012.
  • Cummins is a company with a purpose that is larger than simply generating wealth for our stakeholders. Our simple, straightforward vision statement was developed based on input from Cummins employees around the world. While this vision statement refers to the application of our products, it also speaks directly to empowering and engaging the talents and energy of our employees. The Cummins Mission Statement lays out the foundation for how we will live our vision.
  • Our Core Values are an important extension of our heritage and a clear statement about who we are, how we work and what we aspire to. We refer to these as core values because they are at the heart of everything we do. In a world of rapid and continuing change, it is important that Cummins people know they can count on the stability of these values. We expect all employees to consistently demonstrate them as well as help others live them. Leaders, in particular, must be able to do more than simply explain the core values. They must also consistently demonstrate them as role models, and help others realize the importance of living up to the values.
  • These are the personality traits that Cummins looks for in its employees. These characteristics are the keys to our success.
  • We strive for Process Excellence by applying a set of tools we call the 10 COS Practices. The 10 Practices help us collectively work together to attain our business objectives. At the same time, we are working to improve our capabilities. The COS practices give us a common language and provide a framework for the pursuit of excellence. They also establish a practical map to continuous improvement. The COS practices were developed from research and benchmarking conducted in the late 1980s and early 1990s at Cummins. The practices were first established in our manufacturing plants and technical centers. Then we realized that every business process has the 10 practices imbedded in it. So we decided to use this approach to manage and improve our business processes, regardless of whether the process is related to compensation in Human Resources or product design in Engineering. 6 Sigma SuccessSix Sigma statistical quality methodology & tool set permeates every aspect of our business - driven by customer critical workOver 1.5 million hours of 6S employee training and more than 28,000 projects closed has amounted to $4.4B in savingsEnsures highest levels of manufacturing qualityTargets mature levels of reliability from product launch2012 is the 12th anniversary of 6S at Cummins.Our goal is to become a company that continuously improves business results by reducing variation and eliminating waste. This is the purpose of the Cummins Operating System.We ensure our processes are reliable & consistent worldwide to ensure customer satisfaction.We use 6S tools to eliminate variations in the process and improve both quality & efficiency.6S has extended beyond manufacturing to product design and customer service. We work together with customers on 6S projects.
  • Talked about a “New Cummins” in the beginning of this presentation. One that is less cyclical, more diversified, better positioned to be a global leader. We have been able to achieve these results while remaining true to our core values of ethical business behavior and corporate social responsibility.EnvironmentalIn 2012, Cummins was named a winner in the Greenhouse Gas (GHG) Goal achievement category of the inaugural Climate Leadership Awards for excellence in industrial energy efficiency. The U.S. Environmental Protection Agency (EPA) and three other groups sponsored the awards to recognize corporate, organizational and individual leadership in addressing climate change and reducing carbon emissions.Cummins was named to the Dow Jones Sustainability Index for the seventh consecutive year in September 2011. The index represents the top 10 percent of the world’s largest companies rated by Dow Jones across a range of economic, environmental and social responsibility measures.Cummins finished in the top third of the companies reviewed as part of Newsweek’s environmental rankings of the 500 largest U.S. companies in the fall of 2011. The magazine partnered with two environmental research organizations to review the environmental footprints of companies along with their policies and transparency in reporting.FSTE4Good Group selects companies for the index based on their environmental records, whether they develop positive relationships with their stakeholders and whether they support universal human rights. Governance, ethics and corporate responsibilityIn 2012, Cummins was again named one of the World’s Most Ethical Companies by the Ethisphere Institute. The institute evaluates companies’ commitment to ethical leadership, compliance practices and corporate responsibility. This was the fifth straight year that Ethisphere selected Cummins for this honor.Corporate Responsibility magazine again named Cummins to its 2012 list of the world’s 100 Best Corporate Citizens. It was the 12th time in the last 13 years that the Company has been named to the list. Overall, Cummins was number 81. Cummins China Investment Co., Limited won the Outstanding Corporate Citizen Award in 2011 from the China Association of Social Workers for the fourth consecutive time. The awards ceremony was held in the Great Hall of the People in Beijing. Cummins was honored for undertaking corporate responsibility activities while making great commercial achievements.Governance Metrics International (GMI ) - Received highest rating of 10 for best-in-class corporate governance standards by Governance Metrics international (2010). Only 45 of more than 4,000 companies rated received a perfect score.Workplace, diversity, peopleCummins was named one of the Top 50 Companies for Diversity by Diversity Inc magazine for the sixth consecutive year in 2012. Cummins ranked 18th on the list, the same position the Company held in 2011.In 2012, Cummins received a perfect rating for a seventh consecutive year from the Human Rights Campaign, the largest advocacy group for gay, lesbian, bisexual and transgender employees. The group rated more than 800 employers as part of its 2012 Corporate Equality Index. The index reviews companies on their LGBT policies, practices and more.Cummins in 2011 was honored with the Company Driver Safety Award at the ninth Annual Fleet Safety Forum Awards for Excellence in Staffordshire (U.K.) sponsored by Brake, a road safety charity. Cummins was recognized for its efforts to create a global driver risk assessment, as well as for the monitoring and improvement program developed through the Virtual Risk Manager application.Cummins received an IHS SPECTRUM Excellence Award in 2011 in recognition of the company’s superior use of advanced information technology to achieve environmental, health and safety compliance and sustainability (EHS&S) business goals.Cummins received an Honorable Mention C. Everett Koop National Health Award in 2011, presented by The Health Project, a non-profit, private-public consortium chaired by the former U.S. Surgeon General. The project honors organizations that have met rigorous results criteria and documented improved health and decreased medical costs.6 Sigma CEO of the Year -- awarded by Global Six Sigma Awards Organization -- July, 2007 Per Tim in 2002, "We are adopting the Six Sigma methodology not only to ensure that our products remain among the most reliable, durable and efficient in the world, but also to make our processes, such as paying our bills, managing our orders and responding to customer issues, world class. Our customers and shareholders deserve nothing less.” “In 2006 we saved $340 million and completed 2,200 projects. Since the inception of the program in September 1999, we’ve saved or avoided spending more than $1 billion, completed 7,500 projects and trained 6,000 Belts with almost a million hours of training.” Through 2008, annualized savings of $2.5B, more than 9500 belts trained, 1.5 million hours of employee training and 13,300 projects closed.Product Awards:Motor Trend magazine named the 2010 Dodge Ram Heavy Duty Truck, featuring our 6.7-liter engine, as its Truck of the Year (2010)Leadership in Lifting Equipment and Aerial Platforms (LLEAP) Gold Award for Design Leadership for Tier 4 QSB6.7 for both engine and particulate filter (2008)PACE Award for significant product innovation with the 6.7L Turbo Diesel Engine from Automotive News (2008)National Society of Professional Engineers Best New Product Award for the Cummins Particulate Filter (2008)Newsmaker Of The Year for advancements in diesel engine and emissions technology to Cummins Inc. from Diesel Progress (2007)Regional Awards: South AmericaEnvironmental Award (Automotive Engineering Association - 2008)Social Responsibility (Positivo Magazine - 2008)South PacificAustralian Government Equal Opportunity for Women in the Workplace Agency (EOWA) Employer of Choice Citation-2nd year (2008) and Leading CEO for the Advancement of Women (2007)IndiaCummins India Limited was honored with the Helen Keller award for its commitment to hiring people with disabilities (2008)Cummins Generator Technologies India Ltd., Pune, received the Greentech Environmental Excellence Award in recognition of its commitment to environmental management (2008)ChinaChongqing Cummins Engine Co. (CCEC) ranked as one of Leading Brands in Chongqing (2008) Cummins Generator Technologies (CGT) China awarded with “Best Foreign-invested Enterprises in China” (2008)
  • Cummins and Onan were founded by two contemporary entrepreneurs, Clessie Cummins and D.W. Onan. Cummins was founded in 1919. Cummins’ first diesel engine was the 1.5 to 8 hp HVID used by farmers for powering pumps. Cummins is still located at the original factory site in Columbus, Indiana. Onan was founded in 1920. Onan’s first product was the ten-lite generator. The ten-lite was developed for ice fishing cabins, providing the equivalent of 10 light bulbs worth of power. It was the product that launched 90 years of leadership in the power generation industry.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, Inc. called Cummins Power Generation.PETers + BOWler = PETBOW
  • 2011Market leadership in China, India, Russia, and Latin AmericaEnergy shortfalls will continue in emerging marketsCompared to the prior year, improved demand in China and North America was partially offset by weaker demand in India.Fridley, USA 111,000 consumer, 17,700 industrial annuallyKent, UK 12,000 industrial annuallyGuarulhos, Brazil 1,000 industrial annuallyPune, India 4,000 industrial annuallyWuhan, China 600 industrial annually
  • Cummins serves customers in approximately 190 countries and territories through a network of more than 600 Company-owned and independent distributor locations and approximately 6,500 dealer locations.Supply Chain: low-cost global sourcingOperations/Components: 48 international locations, increasing global focusDistribution: extensive reach,built over decades, hard to replicate, fortified positions in key markets, thousands of customers (who provide constant feedback, enabling us to provide integrated solutions/services that truly create value)Service:look for info
  • Message:Our success is due to more than our products – it is also about the quality & commitment of our people.Our workforce is highly diverse and globally orientated to reflect the fact that over 50% of sales are outside the US.

Global mkt   this is cpg - final extended version - april2013 Global mkt this is cpg - final extended version - april2013 Presentation Transcript

  • This is Cummins Power Generation
  • Content  Cummins Inc.  Power Generation business  What makes the difference2 Cummins Confidential
  • This is Cummins Power Generation CUMMINS INC.3 Cummins Confidential
  • Cummins Inc. – A Worldwide Company4 Cummins Confidential
  • Cummins Inc. – A Worldwide Company NORTH AMERICA Cummins was established in Columbus, Indiana in 1919. Today, it is home to the company’s corporate headquarters as well a number of business unit operations and the Cummins Technical Center. More than 6,000 Cummins employees work in the Columbus area.5 Cummins Confidential
  • Cummins Inc. – A Worldwide Company MEXICO Cummins has had a wholly- owned manufacturing presence in San Luis Potosí, Mexico since the early 1980s and employs approximately 2,000 people in the city. The company’s presence in the country, however, goes back to the 1960s.6 Cummins Confidential
  • Cummins Inc. – A Worldwide Company BRAZIL Cummins Brazil was established in 1971 and today is home to divisions of the engine business, the distribution business, emission solutions, turbo technologies, filtration and power generation. About 2,000 employees work for Cummins Brazil. Sales in Brazil grew by about 70 percent from 2009 to 2010.7 Cummins Confidential
  • Cummins Inc. – A Worldwide Company UNITED KINGDOM Cummins acquired its first overseas manufacturing facility in 1956 in Shotts, Scotland, Today, the company has seven plants in the United Kingdom including facilities in Darlington, Daventry, Hudders field, Ramsgate and Stamford in England and Cumbernauld, Scotland.8 Cummins Confidential
  • Cummins Inc. – A Worldwide Company AFRICA Cummins is making a major push in Africa. The company opened a new corporate Africa headquarters in Woodmead, South Africa in June 2011.9 Cummins Confidential
  • Cummins Inc. – A Worldwide Company INDIA Cummins celebrated its fiftieth anniversary in business in India in 2012. The company has over 1 million engines in operation and over 10,000 employees in the country, working across some 200 locations.10 Cummins Confidential
  • Cummins Inc. – A Worldwide Company CHINA Cummins was one of the first American companies to expand to China. The company’s efforts in the country date back to 1975. Today, Cummins has over 1.5 million engines in operation and over 7,000 employees in China.11 Cummins Confidential
  • Cummins Inc – Who We Are SALES / EARNINGS In 2012, Cummins EBIT was $2.35 billion on sales of $17.3 billion12 Cummins Confidential
  • Cummins Inc – Revenue by Business Unit 2011 2012 Sales: $18.0 billion Sales: $17.3 billion Distribution Distribution Segment Segment Engine 14% Engine 16% Segment Segment 50% 52% Power Gen Segment 16% $17.3 Billion Power Gen Segment 15% In global sales Components Components Segment Segment 19% 18%13 Cummins Confidential
  • Cummins Inc – Revenue by Market Territory 2011 2012 Sales: $18.0 billion Sales: $17.3 billion Africa Canada Canada India1% 3% Africa India 1% 4% 5% United 4% United States China States China 48% 8% 41% 6% Other Asia /Other Asia Australia/ Australia 11% 11% Mexico / Latin America Mexico / Latin 10% America 12% Europe / Europe / Middle East Middle East 19% 16%14 Cummins Confidential
  • Cummins Inc – Historic Sales Performance $20,000 Net Sales ($ in millions) $18,000 $18,000 $17,334 $16,000 $14,342 $14,000 $13,226 $13,048 $12,000 $11,362 $10,800 $9,918 $10,000 $8,438 $8,000 $6,296 $5,853 $6,000 $4,000 $2,000 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201215 Cummins Confidential
  • Cummins Inc. – How We Do It ENGINE BUSINESS POWER GENERATION BUSINESS COMPONENTS BUSINESS DISTRIBUTION BUSINESS16 Cummins Confidential
  • Cummins Inc. – Vision and Mission Vision “Making people’s lives better by unleashing the power of Cummins.” Mission We unleash the power of Cummins by:  Motivating people to act like owners, working together.  Exceeding customer expectations by always being the first to market with the best products.  Partnering with our customers to make sure they succeed.  Demanding that everything we do leads to a cleaner, healthier, safer environment.  Creating wealth for all stakeholders.17 Cummins Confidential
  • Cummins Inc. – Core Values Delivering Integrity Innovation Superior Results Corporate Diversity Global Responsibility Involvement18 Cummins Confidential
  • Cummins Inc. – Personality traits Decisive Driven to Win Agile Passionate Caring19 Cummins Confidential
  • Cummins Inc. – Operating System Put the customer Synchronize flows Design quality in Involve people Ensure equipment first, and provide (material, physical every step of the and promote and tools are real value and information) process teamwork available and capable Create Establish Treat preferred Follow common Use Six Sigma as the functional the right suppliers as problem-solving primary process excellence environment partners techniques improvement method20 Cummins Confidential
  • Cummins Inc. – Recognition ENVIRONMENTAL  In 2012, Cummins was named a winner in the Greenhouse Gas (GHG) Goal achievement category of the inaugural Climate Leadership Awards for excellence in industrial energy efficiency.  Cummins was named to the Dow Jones Sustainability Index for the seventh consecutive year in September 2011.  Cummins finished in the top third of the companies reviewed as part of Newsweek’s environmental rankings of the 500 largest U.S. companies in the fall of 2011. GOVERNANCE ETHICS AND CORPORATE RESPONSIBILITY  In 2012, Cummins was again named one of the World’s Most Ethical Companies by the Ethisphere Institute.  Corporate Responsibility magazine again named Cummins to its 2012 list of the world’s 100 Best Corporate Citizens WORKPLACE, DIVERSITY, PEOPLE  Cummins was named one of the Top 50 Companies for Diversity by Diversity Inc magazine for the sixth consecutive year in 2012.  In 2012, Cummins received a perfect rating for a seventh consecutive year from the Human Rights Campaign, the largest advocacy group for gay, lesbian, bisexual and transgender employees.21 Cummins Confidential
  • Cummins Inc. – Climate Change Principles A Legacy of Responsibility “… we believe that our survival in the very long run is asdependent upon responsible citizenship in our communities and the society, as it is on responsible technological, financial and production performance.” J. Irwin Miller, former chairman of Cummins, 1972 http://cumminspower.com/en/about/environmental/22 Cummins Confidential
  • This is Cummins Power Generation POWER GENERATION BUSINESS23 Cummins Confidential
  • Power Generation Business CUMMINS AND ONAN HERITAGE Ten-lite generator Clessie Cummins D.W.Onan 8 hp diesel engine James Arthur Peters Henry Percy Bowler24 Cummins Confidential
  • Power Generation Business CORPORATE HEADQUARTERS 3850 Victoria Street North St. Paul, MN 55126 Phone: 651−787−6001 WEBSITE power.cummins.com GLOBAL FACTORIES Fridley, USA Kent, UK Guarulhos, Brazil Wuhan, China Pune, India25 Cummins Confidential
  • Power Generation Business – Revenue by LOB 2011 2012 Sales: $3.5 billion Sales: $3.3 billion Generator Generator Power Products Power Products Technologies Technologies 47% 51% 19% 17% $3.3 Billion PowerSystems Power In global sales Systems 23% 23% Power Solutions Power 11% Solutions 9%26 Cummins Confidential
  • Power Generation Business – Historic Sales Performance $4,000 Net Sales ($ in millions) $3,500 $3,495 $3,500 $3,265 $3,060 $3,000 $2,919 $2,500 $2,416 $2,417 $1,999 $2,000 $1,842 $1,500 $1,329 $1,226 $1,000 $500 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201227 Cummins Confidential
  • Power Generation Business28 Cummins Confidential
  • Line of Business Power Products Power Systems Power Solutions29 Cummins Confidential
  • Power Products Segments  Rental  Telecom  Residential and Commercial Properties  Recreational Vehicles  Commercial Mobile  Marine  Military  Office buildings  Retail  Gas stations  Dwellings  Educational facilities Applications  Emergency Standby power  Prime power  Base Load (Continuous) power30 Cummins Confidential
  • Power Systems Segments  Airports  Data centers  Government facilities  Healthcare facilities  Large commercial buildings  Manufacturing  Mining  Waste and wastewater treatment Applications  Emergency Standby power  Prime power  Peak power  Data Center Continuous  Distributed energy  Power management31 Cummins Confidential
  • Power Solutions32 Cummins Confidential
  • The Power of One TM – Two Dimensions THE POWER OF ONE TM MEANS A SINGLE PROVIDER OF PRE-INTEGRATED SYSTEMS DIESEL GAS ALTERNATOR CONTROLS ATS TURBOCHARGERS FILTRATION ENGINE ENGINE SWITCHGEAR SYSTEMS33 Cummins Confidential
  • The Power of One TM – Two DimensionsTHE POWER OF ONE TM MEANS A SINGLE PROVIDER OF PRE-INTEGRATED SYSTEMS34 Cummins Confidential
  • The Power of One TM – Two Dimensions THE POWER OF ONE TM MEANS A SINGLE PROVIDER OF SOLUTIONS35 Cummins Confidential
  • The Power of One TM ONE COMPANY, ONE SOURCE FOR COMPLETE POWER SOLUTIONS Products Systems Solutions36 Cummins Confidential
  • Cummins Power Generation OUR PRODUCTS  Diesel Generator Sets – 50 Hz and 60 Hz – From 12 kW to 2750 kW  Lean-burn Gas Generator Sets – 50 Hz and 60 Hz – From 995 kW to 2 MW  Spark-ignited Generator Sets – 50 Hz and 60 Hz – From 20 kW to 125 KW  Residential Generator Sets – 50 Hz and 60 Hz – From 10 kW to 100 kW  Marine Generator Sets – 50 Hz and 60 Hz – From 4 kW to 99 kW  Generator Sets for Commercial Mobile Applications - Gasoline, LP, Diesel, Hydraulic – From 2 kW to 20 kW  Generator Sets for RV Applications - Gasoline, LP, Diesel – From 2.5 kW to 12 kW  Sound-attenuated and Weather-protective Generator Sets  Power Box – 50 Hz and 60 Hz  Mobile Power for rental  Automatic Transfer Switches – From 40 to 4000 Amps  Digital Paralleling Systems and Switchgear  Software and Networking37 Cummins Confidential
  • Markets and customers we serve... Datacenters/High Tech: Health Care: Industry: Military: Amazon.com Brigham & Womens Hospital AMEC Department of Defense America on Line (AOL) Carolinas Medical Center Boeing Pensacola Naval Air Station Automated Data Processing Cook Inc. Cessna Rock Island Arsenal Bank America Hospital Corporation of America Continental Airlines Scott AFB Citigroup Howard Hughes Medical Center Engineered Fluid Inc. U.S State Department GMAC Jordan Hospital FedEx U.S. Army Hewlitt Packard (HP) Massachusetts General Hospital Honda Intel Merry Health Group Iron Mountain Retail: Lehman Brothers PeaceHealth Monsanto Bass Pro Shops Metropolitan Life (Met Life) Sacred Heart Medical Center North American Lighting Cracker Barrel Microsoft SIU School of Medicine PacCar Dillards Real Networks St. Josephs Hospital (Ga) Raytheon Aircraft (Beech) Ingles Speak Easy St. Judes Hospital Reynolds Metals Kroger Travelers Insurance Touro Hospital Sysco Foods Nike Vanguard University of Alabama Medical Center Trielectron Publix Verisign UT Hospital Turner Logistics Schnucks Wells Fargo World Travel Partners Target38 Cummins Confidential
  • Markets and customers we serve... Facilities/Gaming: Telecom: Pharmaceutical: Emerald Queen Casino Alltel Boston Scientific Harrahs Casino AT&T Johnson & Johnson Hollywood Casino Bell South Lilly Horseshoe Casino Century Telephone Merck Mohegan Sun Casino Charter Communications Pfizer Museum of Modern Art Cingular Wireless Rx Solutions Seven Cedars Casino Comcast Schering Plough Seven Feathers Casino MCI Seattle Genetics Superdome Motorola Nextel Residential Construction: Oil & Gas: TPC SBC Atmos Energy Sprint Water/Wastewater: British Petroleum US Cellular Gateway FountainSt Kansas Board of Public Utilities Verizon Wireless Metro Sewer and Water National Fuel Gas Headquarters of St. Louis Sempra Energy39 Cummins Confidential
  • Telecom – Case Study Remote cellular antenna sites for Verizon Wireless in upstate New York, USA Primary choice factors: What: Product reliability, PowerCommand® integrated digital More than 300-40 kW diesel generating sets providing controls and maintenance contract. standby power at remote cellular sites; 500 kW and 750 kW units at several major switching stations. “Verizon Wireless was one of the leading cell phone Purpose: providers in the telecommunications industry to make Standby power to prevent loss of cellular phone service. this kind of an investment in power reliability.”40 Cummins Confidential
  • Mobile Power – Case Study Minnesota State Fair, St. Paul, Minnesota, USA What: Primary choice factors: Special event auxiliary power Low-noise, fuel-efficient Mobile Power units backed by responsive local, factory-trained service personnel Purpose: “In general, mobile power generators simply give us a Provide Mobile Power for the State Fair’s Midway high level of flexibility as demand for power goes up rides, grandstand lighting and cooling, and event on- and down. They also give us flexibility in placement of site trash compacting the rides and games. With mobile power generators, we can move the power as we need to.”41 Cummins Confidential
  • Data Center – Case Study Dataplex, Budapest, Hungary What: Primary choice factors: Four generator sets, model C2000 D5, powered by Proven reliability and quality of Cummins Power QSK60 engine. Generator controls include DMC 300 Generation products digital master control system, switchgear and utility Ability for installation to meet unique requirements of paralleling project such as low noise-emission factor Purpose: Cummins Power Generation’s ability to provide short time Provision of a reliable source of standby power for to market delivery to meet specific customer Hungary’s largest data center to ensure all operations requirements are unaffected in the event of a power blackout42 Cummins Confidential
  • Health Care – Case Study Al Ahli Hospital in Doha, Qatar What: Primary choice factors: Integrated standby power system including generator System reliability, performance and efficiency in order to sets, paralleling switchgear and digital master control ensure patient safety and excellent service for a multi-building hospital complex Purpose: “We are very happy that we selected Cummins Power To provide reliable and seamless emergency backup Generation, because the system is very reliable, it power for critical hospital needs during utility power ensures our patients’ safety and it is very efficient.” outages43 Cummins Confidential
  • Cogeneration – Case Study American Honda Corporate Campus, Torrance, California, USA What: Primary choice factors: A turnkey combined heat and power (CHP) system The reputation of products from Cummins Power producing 1.25 MW of electricity and 10 MMBtu of heat Generation, positive comments from other per hour to operate an absorption chiller and offset customers, and the flexibility and engineering expertise power purchased from the utility demonstrated by the distributor, Cummins Cal Pacific Purpose: To save up to 30 percent annually on total campus energy “Our decision to install cogeneration was an entirely expenditures and demonstrate corporate leadership logical one — it took our environmental commitment a and environmental responsibility step further. It was time to begin generating our own power.”44 Cummins Confidential
  • Waste-to-Energy – Case Study South Ockendon landfill near Dartford, “Cummins ESB offered the most bangs per buck. They came out ahead in cost per kilowatt, and also in the London, UK operations and maintenance cost, other solutions What: were just offering straight replacements, four for four. Three 1750 LBTU 1.75 MWe generator sets This way we reduced it to three generator sets, and we got a higher installed capacity. Also, the way the Purpose: containerized units could swing in and swing out was To recover methane from landfill and generate low-cost a definite advantage. And Cummins ESB fitted out electricity the buildings very well.” Primary choice factors: “We went to Cummins ESB as they had the best proposal Environmental conditions are stable, and gas to fit into the building. The four previous generator sets continues to be produced from waste that is in were in one big hall. There were health and safety the ground already. Even without further implications and it was a very noisy environment. One tipping, the site could continue to generate of the things Cummins ESB did was to build cells to electricity for 15 years or more. accommodate the three new generator sets.”45 Cummins Confidential
  • This is Cummins Power Generation WHAT MAKES THE DIFFERENCE?46 Cummins Confidential
  • What Makes The Difference? – Customer Excellence Focus Put the customer Create functional first, and provide real excellence value …Our Promise47 Cummins Confidential
  • What Makes The Difference? – Emissions Leadership  Cummins works closely with the EPA and other regulatory agencies worldwide to ensure emission levels are technically feasible  We go beyond just meeting emissions to enhance engine performance to meet or exceed customer needs  Ready with the proven diesel technologies as economies adopt ULSD and near zero emissions  Cummins Power Generation has developed an EPA-certified aftertreatment solution for our high- horsepower generators with power nodes from 750 kW – 2750 kW, using a number of exclusive features …Environmental Stewardship48 Cummins Confidential
  • What Makes The Difference – Technology and Quality …Innovation49 Cummins Confidential
  • What Makes The Difference? – Global Company Supply Operations Distribution Service Chain  44,000 employees in 190 countries   88 manufacturing facilities 19 technical centers …Local Support  6,000 sales and service locations  20 parts distribution centers  600 distributor locations50 Cummins Confidential
  • What Makes The Difference? – Capabilities to provide power …however, wherever and whenever you need it.51 Cummins Confidential
  • What Makes The Difference? Our People… ““Dependability is our key brand attribute and goes beyond product performance or response to a service event. Dependability means the customer can always count on …Your Partner Cummins to do what we say we will do.” Tom Linebarger, Cummins Chairman & CEO52 Cummins Confidential
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