Company OverviewCompany Overview
Indiana UniversityIndiana University
Kelley School of BusinessKelley School of BusinessFebruary 10February 10thth, 2005, 2005
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Cummins…...Cummins…...
Global Fortune 500 Company
Design, manufacture and market diesel and alternative fuel engines, filtration and exhaust systems, power generation systems and related components
Largest independent engine manufacturer
Industry leader in engine and manufacturing technologies
Rich history of innovation
Company culture committed to Corporate Responsibility and making a positive impact on the communities in which we operate
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APPLICATIONS…......
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Diesel Industry - PastDiesel Industry - Past
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Diesel Industry - PresentDiesel Industry - Present
"What if you could brush 40 mpg in a big, fast, full-on luxury sedan? That's no longer a rhetorical question, thanks to the brilliant Mercedes E320 CDI. What you get is the same E-Class sedan that's among the best luxury cars in its class, only it's driven by a turbocharged diesel engine that proves a car can save gas and still kick, um, tail."
By Lawrence Ulrich "More Car, Less Gas; Seven Models That Get Great Gas Mileage Without Sacrificing Style Or Performance"
NPR: Morning EditionAugust, 2004
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Diesel Industry – Future is BrightDiesel Industry – Future is Bright
"EPA projections show that if diesels accounted for a third of all vehicle-miles traveled in the country by 2020, the nation could save a million barrels of fuel a day and consumers could save more than $20 billion per year."By Greg Schneider "Will New, Cleaner Diesel Cars Fuel Comeback in U.S.?"The Washington PostFebruary 22, 2004
"And if gas prices have you fuming, you may want to go diesel. Consider these facts. Some 40 percent of new cars sold in Europe are diesel compared to only one percent in the United States. In 2007, new emissions standards will require diesel to burn 90 percent cleaner than it does today. Already, diesel is 30 percent more efficient than gas, gets more miles to the gallon and is cleaner."CNN DaybreakMay 12, 2004
"Diesel engines are an extremely attractive technology to help achieve EPA's future emissions standards."Jeff Holmstead, EPA Assistant Administrator for Air and Radiation"Ford and EPA to Test New Clean Diesel Combustion in Passenger Vehicles"Green Car CongressJanuary 28, 2005
Don’t just take our word for it….
Visit www.dieselforum.org for more information and quotes from external sources like those below.
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Diversified Revenue BaseDiversified Revenue Base .
Revenue by Business Unit and Geographic Region
2004: $8.4 billion
Mexico, 3%
Canada, 7%
Australia / New Zealand,
4%
Brazil / Latin America, 4%Africa / Middle
East, 4%
Europe / CIS, 14%
Asia, 14%
United States, 52%
Filtration & Other15%
Power Gen19%
EBU57%
International Distributor
9%
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Record Shareholder ValueRecord Shareholder Value
Data as of Dec. 31, 2004
15.7%
10.9%
Peer group: Caterpillar, Navistar, Ingersoll-Rand, Paccar, Eaton, ArvinMeritor, Deere, Dana, CNH
12/31/2003 3/31/2003 6/30/2003 9/30/2003 12/31/200450
75
100
125
150
175
200
Sto
ck P
rice
In
dex
CMI S&P 500 Peer Avg.
74.6%
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Confident About Our FutureConfident About Our Future
Strengthening U.S. Economy
Robust Truck Demand
Invested in Right Technology
Secured Business Through Long-Term Agreements
Positioned Well in Emerging Markets
Global Growth in Power Generation
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Cummins CultureCummins Culture
What's our personality? Decisive, Driven to win, Agile, Passionate, Caring
Values: What do we value? Integrity: Strive to do what is right and do what we say we will do Innovation: Apply the creative ingenuity necessary to make us better,
faster, first Delivering Superior Results: Exceed expectations, consistently Corporate Responsibility: Serve and improve the communities in which
we live Diversity: Embrace the diverse perspectives of all people and honor
with both dignity and respect Global Involvement: Seek a world view and act without boundaries
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“In the search for character and commitment, we must rid ourselves of our inherited, even cherished, biases and prejudices. Character, ability and intelligence are not concentrated in one sex over the other, nor in persons with certain accents, or in certain races, or in persons holding degrees from some universities over others.”
“When we indulge ourselves in such irrational prejudices, we damage ourselves most of all and ultimately assure ourselves of failure in competition with those more open and less biased.”
– J. Irwin Miller, former Cummins Chairman and CEO.
External RecognitionExternal Recognition
2004 -- #1 Corporate Citizen2004 -- #1 Corporate Citizen
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Overview ofOverview ofAccounting & FinanceAccounting & Finance
Corporate MI&A (Columbus, IN)
– External reporting
Treasury (Columbus, IN)
– Cash, Risk, Pension
CBS (Nashville, TN)
– AP, AR, GL, Intercompany, Fixed Assets
BA&A (Columbus, IN)
– Internal Auditing
Business Units Planning, Forecasting,
Reporting
– Target Setting, Annual Planning, Monthly Reporting
Strategy & Finance
– Financial Simulation, Business Strategy, Special Projects
Financial Analysis & Accounting at Plants
– Budgeting, Capital Planning, Working Capital Management
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TreasuryTreasury
Corporate
MI&A (Columbus, IN)
– External reporting
Treasury (Columbus, IN)
– Cash, Risk, Pension
CBS (Nashville, TN)
– Business Services (e.g. payroll, etc)
BA&A (Columbus, IN)
– Internal Auditing
Working with world wide entities to assess their cash needs and making sure there is adequate working capital to manage their businesses
Working with the Cash Manager and helping him invest excess funds
Working with treasury managers on a number of financial risk management processes
Working with treasury managers on liquidity issues
Working with pension group on tracking various pension related scenarios and reporting the funded status to the management
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Strategy & FinanceStrategy & Finance
Business Units Planning, Forecasting,
Reporting
– Target Setting, Annual Planning, Monthly Reporting
Strategy & Finance
– Financial Simulation, Business Strategy, Special Projects
Financial Analysis & Accounting at Plants
– Budgeting, Capital Planning, Working Capital Management
Financial Simulation:– Analysis of interaction
between external factors and internal resources of BU to arrive at a likely financial position of the company over the next few years
Business Strategy:
– Portfolio analysis to determine new project funding level and allocation across various products and markets
Special Projects:– Analysis of new business
opportunities (valuation, JV analysis, etc.)
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Career andCareer andTraining OpportunitiesTraining Opportunities
Ongoing education (Sponsored by Cummins)
– MBA, CPA, CMA, CFA
Mentoring Program
– Career path development with manager outside your group
– Go to lunch, meet in work, etc
Buddy Program
– Paired with a peer
– Help with day to day questions, what to do in Columbus, finding place to live
Regular Performance Reviews
– Includes self-assessment, manager review, goal setting, what to work on (Individual Development Plan)
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Questions ?Questions ?
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Career Path – Pam RobertsCareer Path – Pam Roberts
1986 1987 1988 1991 1992
PFR Analyst
Mgr – Financial Analysis
Director – Corporate PFR
Finance Director - European Marketing
Mgr – Financial Architecture
1993
Director – WW ABM
Controller - Aftermarket
Controller - Fleetguard
VP Finance – Filtration BU
Ex Dir - Business Analysis & Audit
Ex Dir - International CBS
1995 1996 1997 2000 2003
2004 – Associate Director, Professional Development
Kelley School of Business
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CAREER PROFILE – SUPPLY CHAINCAREER PROFILE – SUPPLY CHAINRich Freeland – VP & GM – Fuel Systems Business
Vice President - Fuel Systems Business 2001-2004Engine Business Purchasing & Quality
Vice President - Heavy Duty Operations & 1999-2001Fuel Systems Business
Plant Manager - Columbus Engine Plant 1996-1999
Executive Director - Aftermarket Logistics 1993-1996
Plant Manager - Diesel ReCon 1991-1993
Director - Parts Marketing/Logistics 1990-1991
Manager - Materials 1986-1990
MBA - Kelley School of Business 1986
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CAREER PROFILE – FINANCECAREER PROFILE – FINANCEDean Cantrell – Director Treasury Services
Director – Investor Relations 2004 - present
Director- Treasury Services 2002- 2004
Controller - Marine Business 2000-2002
Finance Manager - Columbus Engine Plant 1998-2000
MI& A - Financial Analyst 1996-1998
MBA - Kelley School of Business 1996