global mkt this is cpg - final extended version - april2013

This is Cummins Power Generation

Cummins Confidential2

Content

Cummins Inc. Power Generation business What makes the difference


CUMMINS INC.This is Cummins Power Generation


Cummins Inc. – A Worldwide Company



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.

NORTH AMERICA



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.

MEXICO



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.

BRAZIL



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.

UNITED KINGDOM



Cummins is making a major push in Africa. The company opened a new corporate Africa headquarters in Woodmead, South Africa in June 2011.

AFRICA



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.

INDIA



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.

CHINA


SALES / EARNINGS

In 2012, Cummins EBIT was

$2.35 billionon sales of

$17.3 billion

Cummins Inc – Who We Are

In global sales

Components Segment

18%

2011Sales: $18.0 billion

Distribution Segment

14%


Power Gen Segment

16%

Engine Segment

52%

Components Segment

19%

Power Gen Segment

15%

Distribution Segment

16%Engine

Segment 50%

Cummins Inc – Revenue by Business Unit

$17.3 Billion


Africa 1%

Canada 3%

United States 41%

Other Asia / Australia

11%

Europe / Middle East

19%

Mexico / Latin

America 12%

India 5%

China8%



Africa 1%

Canada 4%

United States 48%

Other Asia / Australia

11%

Europe / Middle East

16%

Mexico / Latin

America10%

India 4%

China 6%

Cummins Inc – Revenue by Market Territory


Cummins Inc – Historic Sales Performance


2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$5,853 $6,296

$8,438

$9,918

$11,362

$13,048

$14,342

$10,800

$13,226

$18,000 $17,334

Net Sales ($ in millions)


Cummins Inc. – How We Do It

POWER GENERATION BUSINESS

COMPONENTS BUSINESS

DISTRIBUTION BUSINESS

ENGINE BUSINESS


Cummins Inc. – Vision and Mission

Vision

“Making people’s lives better by unleashing the power of Cummins.”

MissionWe 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.

Cummins Inc. – Core Values

Integrity Innovation Delivering Superior Results

Corporate Responsibilit

y

Diversity Global Involveme

ntCummins Confidential18

Cummins Inc. – Personality traits

19 Cummins Confidential

Decisive Driven to Win

Agile

Passionate Caring


Cummins Inc. – Operating System

Put the customer first, and provide

real value

Synchronize flows (material,

physical and information)

Design quality in every step of the

process

Involve people and promote

teamwork

Ensure equipment and tools are available and

capable

Create functional excellence

Establish the right

environment

Treat preferred suppliers as

partners

Follow common problem-solving

techniques

Use Six Sigma as the primary process

improvement method

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.


Cummins Inc. – Climate Change Principles

http://cumminspower.com/en/about/environmental/

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/

http://www.cumminspowerdocs.com/climate/pdf/Climate-Change-PrincipleBroch_v07.pdf


POWER GENERATION BUSINESSThis is Cummins Power Generation


Power Generation Business

Clessie Cummins D.W.Onan

CUMMINS AND ONAN HERITAGE

Henry Percy BowlerJames Arthur Peters

8 hp diesel engine

Ten-lite generator



Fridley, USA Pune, IndiaGuarulhos, Brazil Wuhan, China

GLOBAL FACTORIES

Kent, UK

WEBSITE power.cummins.com

CORPORATEHEADQUARTERS 3850 Victoria Street NorthSt. Paul, MN 55126Phone: 651−787−6001

In global sales



Generator Technologies

19%

Power Solutions

11%

Power Products47%

$3.3 Billion

Power Generation Business – Revenue by LOB


Power Systems

23%

Generator Technologies

17%

Power Solutions

9%

Power Products51%

Power Systems

23%

Power Generation Business – Historic Sales Performance


2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$1,226 $1,329

$1,842 $1,999

$2,416

$3,060

$3,500

$2,417

$2,919

$3,495

$3,265

Net Sales ($ in millions)

Power Systems

Line of Business

Power Products Power Solutions



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


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


Power Solutions

The Power of One TM – Two DimensionsTHE POWER OF ONE TM MEANS A SINGLE PROVIDER OF PRE-INTEGRATED SYSTEMS

DIESEL ENGINE

GAS ENGINE

ALTERNATOR CONTROLS ATS SWITCHGEAR

TURBOCHARGERS FILTRATION SYSTEMS



The Power of One TM – Two DimensionsTHE POWER OF ONE TM MEANS A SINGLE PROVIDER OF PRE-INTEGRATED SYSTEMS


The Power of One TM – Two DimensionsTHE POWER OF ONE TM MEANS A SINGLE PROVIDER OF SOLUTIONS

The Power of One TM ONE COMPANY, ONE SOURCE FOR COMPLETE POWER SOLUTIONS


Products Systems Solutions


OUR PRODUCTS

Cummins Power Generation

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

Wells Fargo

Verisign

Vanguard

Travelers Insurance

Speak Easy

Real Networks

Microsoft

Metropolitan Life (Met Life)

Lehman Brothers

Intel

Hewlitt Packard (HP)

GMAC

Citigroup

Bank America

Automated Data Processing

America on Line (AOL)

Amazon.com

Datacenters/High Tech:

UT Hospital

University of Alabama Medical Center

Touro Hospital

St. Judes Hospital

St. Joseph's Hospital (Ga)

SIU School of Medicine

Sacred Heart Medical Center

PeaceHealth

Merry Health Group

Massachusetts General Hospital

Jordan Hospital

Howard Hughes Medical Center

Hospital Corporation of America

Cook Inc.

Carolinas Medical Center

Brigham & Women's Hospital

Health Care:

World Travel Partners

Turner Logistics

Trielectron

Sysco Foods

Reynolds Metals

Raytheon Aircraft (Beech)

PacCar

North American Lighting

Monsanto

Iron Mountain

Honda

FedEx

Engineered Fluid Inc.

Continental Airlines

Cessna

Boeing

AMEC

Industry:

U.S. Army

U.S State Department

Scott AFB

Rock Island Arsenal

Pensacola Naval Air Station

Department of Defense

Military:

Target

Schnucks

Publix

Nike

Kroger

Ingles

Dillards

Cracker Barrel

Bass Pro Shops

Retail:

Markets and customers we serve...


Superdome

Seven Feathers Casino

Seven Cedars Casino

Museum of Modern Art

Mohegan Sun Casino

Horseshoe Casino

Hollywood Casino

Harrah's Casino

Emerald Queen Casino

Facilities/Gaming:

Sempra Energy

National Fuel Gas Headquarters

Kansas Board of Public Utilities

British Petroleum

Atmos Energy

Oil & Gas:

Verizon Wireless

US Cellular

Sprint

SBC

Nextel

Motorola

MCI

Comcast

Cingular Wireless

Charter Communications

Century Telephone

Bell South

AT&T

Alltel

Telecom:

Seattle Genetics

Schering Plough

Rx Solutions

Pfizer

Merck

Lilly

Johnson & Johnson

Boston Scientific

Pharmaceutical:

TPC

Residential Construction:

Metro Sewer and Water of St. Louis

Gateway FountainStWater/Wastewater:

Markets and customers we serve...



Telecom – Case Study

Remote cellular antenna sites for Verizon Wireless in upstate New York, USA

What:More than 300-40 kW diesel generating sets providing

standby power at remote cellular sites; 500 kW and 750 kW units at several major switching stations.

Purpose:Standby power to prevent loss of cellular phone service.

Primary choice factors:Product reliability, PowerCommand® integrated digital

controls and maintenance contract.

“Verizon Wireless was one of the leading cell phone providers in the telecommunications industry to make this kind of an investment in power reliability.”


Mobile Power – Case Study

Minnesota State Fair, St. Paul, Minnesota, USA

What:Special event auxiliary power

Purpose:Provide Mobile Power for the State Fair’s Midway rides,

grandstand lighting and cooling, and event on-site trash compacting

Primary choice factors:Low-noise, fuel-efficient Mobile Power units backed by

responsive local, factory-trained service personnel

“In general, mobile power generators simply give us a high level of flexibility as demand for power goes up and down. They also give us flexibility in placement of the rides and games. With mobile power generators, we can move the power as we need to.”


Data Center – Case Study

Dataplex, Budapest, Hungary

What:Four generator sets, model C2000 D5, powered by

QSK60 engine. Generator controls include DMC 300 digital master control system, switchgear and utility paralleling

Purpose:Provision of a reliable source of standby power for

Hungary’s largest data center to ensure all operations are unaffected in the event of a power blackout

Primary choice factors:Proven reliability and quality of Cummins Power

Generation productsAbility for installation to meet unique requirements of

project such as low noise-emission factorCummins Power Generation’s ability to provide short time

to market delivery to meet specific customer requirements

.


Health Care – Case Study

Al Ahli Hospital in Doha, Qatar

What:Integrated standby power system including generator

sets, paralleling switchgear and digital master control for a multi-building hospital complex

Purpose:To provide reliable and seamless emergency backup

power for critical hospital needs during utility power outages

Primary choice factors:System reliability, performance and efficiency in order to

ensure patient safety and excellent service

“We are very happy that we selected Cummins Power Generation, because the system is very reliable, it ensures our patients’ safety and it is very efficient.”


Cogeneration – Case Study

American Honda Corporate Campus, Torrance, California, USA

What:A turnkey combined heat and power (CHP) system

producing 1.25 MW of electricity and 10 MMBtu of heat per hour to operate an absorption chiller and offset power purchased from the utility

Purpose:To save up to 30 percent annually on total campus energy

expenditures and demonstrate corporate leadership and environmental responsibility

Primary choice factors:The reputation of products from Cummins Power

Generation, positive comments from other customers, and the flexibility and engineering expertise demonstrated by the distributor, Cummins Cal Pacific

“Our decision to install cogeneration was an entirely logical one — it took our environmental commitment a step further. It was time to begin generating our own power.”


Waste-to-Energy – Case Study

South Ockendon landfill near Dartford,London, UKWhat:Three 1750 LBTU 1.75 MWe generator setsPurpose:To recover methane from landfill and generate low-cost

electricityPrimary choice factors:“We went to Cummins ESB as they had the best

proposal to fit into the building. The four previous generator sets were in one big hall. There were health and safety implications and it was a very noisy environment. One of the things Cummins ESB did was to build cells to accommodate the three new generator sets.”

“Cummins ESB offered the most bangs per buck. They came out ahead in cost per kilowatt, and also in the operations and maintenance cost, other solutions were just offering straight replacements, four for four. This way we reduced it to three generator sets, and we got a higher installed capacity. Also, the way the containerized units could swing in and swing out was a definite advantage. And Cummins ESB fitted out the buildings very well.”

Environmental conditions are stable, and gas continues to be produced from waste that is in the ground already. Even without further tipping, the site could continue to generate electricity for 15 years or more.


WHAT MAKES THE DIFFERENCE?This is Cummins Power Generation


What Makes The Difference? – Customer Excellence Focus

Put the customer first, and provide

real value

Create functional excellence

…Our Promise

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

What Makes The Difference? – Emissions Leadership

…Environmental Stewardship



What Makes The Difference – Technology and Quality

…Innovation

Cummins Confidential

What Makes The Difference? – Global Company

50

…Local Support 44,000 employees in 190 countries 88 manufacturing facilities 19 technical centers 6,000 sales and service locations 20 parts distribution centers 600 distributor locations

SupplyChain

Operations Distribution Service


What Makes The Difference? – Capabilities to provide power

…however, wherever and whenever you need it.


What Makes The Difference?

…Your Partner

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 Cummins to do what we say we will do.”

Tom Linebarger, Cummins Chairman & CEO