This is Cummins Power Generation
Cummins Confidential2
Content
Cummins Inc. Power Generation business What makes the difference
Cummins Confidential3
CUMMINS INC.This is Cummins Power Generation
Cummins Confidential4
Cummins Inc. – A Worldwide Company
Cummins Confidential5
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 Confidential6
Cummins Inc. – A Worldwide Company
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 Confidential7
Cummins Inc. – A Worldwide Company
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 Confidential8
Cummins Inc. – A Worldwide Company
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 Confidential9
Cummins Inc. – A Worldwide Company
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 Confidential10
Cummins Inc. – A Worldwide Company
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 Confidential11
Cummins Inc. – A Worldwide Company
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
Cummins Confidential12
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%
2012Sales: $17.3 billion
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
Cummins Confidential13
Africa 1%
Canada 3%
United States 41%
Other Asia / Australia
11%
Europe / Middle East
19%
Mexico / Latin
America 12%
India 5%
China8%
2011Sales: $18.0 billion
2012Sales: $17.3 billion
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 Confidential14
Cummins Inc – Historic Sales Performance
Cummins Confidential15
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 Confidential16
Cummins Inc. – How We Do It
POWER GENERATION BUSINESS
COMPONENTS BUSINESS
DISTRIBUTION BUSINESS
ENGINE BUSINESS
Cummins Confidential17
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 Confidential20
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
Cummins Confidential21
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 Confidential22
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
Cummins Confidential23
POWER GENERATION BUSINESSThis is Cummins Power Generation
Cummins Confidential24
Power Generation Business
Clessie Cummins D.W.Onan
CUMMINS AND ONAN HERITAGE
Henry Percy BowlerJames Arthur Peters
8 hp diesel engine
Ten-lite generator
Cummins Confidential25
Power Generation Business
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
2011Sales: $3.5 billion
2012Sales: $3.3 billion
Generator Technologies
19%
Power Solutions
11%
Power Products47%
$3.3 Billion
Power Generation Business – Revenue by LOB
Cummins Confidential26
Power Systems
23%
Generator Technologies
17%
Power Solutions
9%
Power Products51%
Power Systems
23%
Power Generation Business – Historic Sales Performance
Cummins Confidential27
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 Generation Business
Cummins Confidential28
Power Systems
Line of Business
Power Products Power Solutions
Cummins Confidential29
Cummins Confidential30
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
Cummins Confidential31
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
Cummins Confidential32
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
Cummins Confidential33
Cummins Confidential34
The Power of One TM – Two DimensionsTHE POWER OF ONE TM MEANS A SINGLE PROVIDER OF PRE-INTEGRATED SYSTEMS
Cummins Confidential35
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
Cummins Confidential36
Products Systems Solutions
Cummins Confidential37
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...
Cummins Confidential38
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...
Cummins Confidential39
Cummins Confidential40
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.”
Cummins Confidential41
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.”
Cummins Confidential42
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
.
Cummins Confidential43
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.”
Cummins Confidential44
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.”
Cummins Confidential45
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.
Cummins Confidential46
WHAT MAKES THE DIFFERENCE?This is Cummins Power Generation
Cummins Confidential47
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
Cummins Confidential48
Cummins Confidential49
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
Cummins Confidential51
What Makes The Difference? – Capabilities to provide power
…however, wherever and whenever you need it.
Cummins Confidential52
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
Cummins Confidential53