2. Content
Cummins Inc.
Power Generation business
What makes the difference
2 Cummins Confidential
3. This is Cummins Power Generation
CUMMINS INC.
3 Cummins Confidential
4. Cummins Inc. – A Worldwide Company
4 Cummins Confidential
5. 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
6. 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
7. 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
8. 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
9. 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
10. 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
11. 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
12. Cummins Inc – Who We Are
SALES / EARNINGS
In 2012, Cummins EBIT was
$2.35 billion
on sales of
$17.3 billion
12 Cummins Confidential
13. 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
14. 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
16. Cummins Inc. – How We Do It
ENGINE BUSINESS
POWER GENERATION BUSINESS
COMPONENTS BUSINESS
DISTRIBUTION BUSINESS
16 Cummins Confidential
17. 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
18. Cummins Inc. – Core Values
Delivering
Integrity Innovation
Superior Results
Corporate Diversity Global
Responsibility Involvement
18 Cummins Confidential
19. Cummins Inc. – Personality traits
Decisive Driven to Win Agile
Passionate Caring
19 Cummins Confidential
20. 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 method
20 Cummins Confidential
21. 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
22. Cummins Inc. – Climate Change Principles
A Legacy of Responsibility
“… we believe that our survival in the very long run is as
dependent 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
23. This is Cummins Power Generation
POWER GENERATION BUSINESS
23 Cummins Confidential
24. Power Generation Business
CUMMINS AND ONAN HERITAGE
Ten-lite generator
Clessie Cummins D.W.Onan
8 hp diesel engine
James Arthur Peters Henry Percy Bowler
24 Cummins Confidential
25. 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, India
25 Cummins Confidential
26. 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
Power
Systems Power In global sales
Systems
23%
23%
Power
Solutions Power
11% Solutions
9%
26 Cummins Confidential
29. Line of Business
Power Products Power Systems Power Solutions
29 Cummins Confidential
30. 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) power
30 Cummins Confidential
31. 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 management
31 Cummins Confidential
33. 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 SYSTEMS
33 Cummins Confidential
34. The Power of One TM – Two Dimensions
THE POWER OF ONE TM MEANS A SINGLE PROVIDER OF PRE-INTEGRATED SYSTEMS
34 Cummins Confidential
35. The Power of One TM – Two Dimensions
THE POWER OF ONE TM MEANS A SINGLE PROVIDER OF SOLUTIONS
35 Cummins Confidential
36. The Power of One TM
ONE COMPANY, ONE SOURCE FOR COMPLETE POWER SOLUTIONS
Products Systems Solutions
36 Cummins Confidential
37. 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 Networking
37 Cummins Confidential
38. Markets and customers we serve...
Datacenters/High Tech: Health Care: Industry: Military:
Amazon.com Brigham & Women's 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. Joseph's 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 Target
38 Cummins Confidential
39. Markets and customers we serve...
Facilities/Gaming: Telecom: Pharmaceutical:
Emerald Queen Casino Alltel Boston Scientific
Harrah's 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 Energy
39 Cummins Confidential
40. 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
41. 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
42. 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 blackout
42 Cummins Confidential
43. 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.”
outages
43 Cummins Confidential
44. 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
45. 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
46. This is Cummins Power Generation
WHAT MAKES THE DIFFERENCE?
46 Cummins Confidential
47. What Makes The Difference? – Customer Excellence Focus
Put the customer Create functional
first, and provide real excellence
value
…Our Promise
47 Cummins Confidential
48. 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 Stewardship
48 Cummins Confidential
49. What Makes The Difference – Technology and Quality
…Innovation
49 Cummins Confidential
50. 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 locations
50 Cummins Confidential
51. What Makes The Difference? – Capabilities to provide power
…however, wherever and whenever you need it.
51 Cummins Confidential
52. 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 & CEO
52 Cummins Confidential
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.