Investor%20Presentation%20%20MATS%203-27-08%20-%20FINAL

Every Promise. Delivered.

Mid-America Truck ShowMarch 27, 2008

2

Welcome and Introductions

David Geraghty – Commercial Vehicle Engine Business

Dan Davis – Emission Solutions – Global OEM Business

Shawn Wasson – Auxiliary Power Unit Business, Power Generation

3

Engine Segment

Gaining market share in on-highway marketsIndustrial markets supported by non-residential construction and commodity marketsExpanding capacity to meet growing demand

Light-duty Automotive & RV 16%

Heavy-dutytruck 24%

Medium-dutyTruck & bus 16%

StationaryPower 11%

2007 Revenue by Market Application

Construction& Ag 18%

Mining/RailGovt/O&G

Marine 15%

2007 Segment DataSales: $8.2 billionEBIT: $589 millionEBIT Margin: 7.2%

4

Cummins Delivers the Right Technology– On Time, Every Time –

We developed the best solutions in the market for the EPA07 emissions regulations

We were ready to go when the new rules demanded –Again!

Customers prefer Cummins’ power

5

0

5

10

15

20

25

30

35

40

45

50

1998Total

1999Total

2000Total

2001Total

2002Total

2003Total

2004Total

2005Total

2006Total

Jan-07

Feb-07

Mar-07

Apr-07

May-07

Jun-07

Jul-07

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

Jan-08

Perc

ent

Sha

re

Cummins

DDC

Cat

Mack

Volvo

MBE

North American Heavy-Duty Truck ShipmentsEngine Market Share*, January 2008

* Wards NA Heavy Duty (Class 8 Group 2) Market Share

CMIJan ‘0844.0%

2007-20081998-2006 Annual Share

6

0

10

20

30

40

50

60

70

2000

2001

2002

2003

2004

2005

Jan-

06

Feb-

06

Mar

-06

Apr-

06

May

-06

Jun-

06

Jul-0

6

Aug

-06

Sep

-06

Oct

-06

Nov

-06

Dec

-06

Jan-

07

Feb-

07

Mar

-07

Apr-

07

May

-07

Jun-

07

Jul-0

7

Aug

-07

Sep

-07

Oct

-07

Nov

-07

Dec

-07

Jan-

08

Mar

ket S

hare

Cummins Caterpillar Hino MBE ITEC

2006 2007

Class 7 MDT Engine Market Share*January 2008

2000 – 2005

*Ward’s Class 7 NAFTA truck shipments

7

Designing For Medium-Duty Customers

ReliabilityTotal cost of ownershipLow maintenancePower density

SociabilitySafe operationWeight/spaceMinimal driver trainingEase of operationInformation systemsEmissions compliance

Overall Best Value

8

Lowest Cost of Ownership

Designing Engines For The Heavy-Duty Market

High uptimeLow fuel consumptionOperational efficiencyHigh residual value

High performanceSafe operationEase of operationDriver satisfactionInformation systemsSociabilityEmissions compliance

9

Complementing Proprietary Offerings

We won’t compete with our OEMs – we help them sell more

trucks

10

HeavyHeavy--Duty Duty EnginesEngines

MidMid--Range Range EnginesEngines

The Right TechnologyIntegrated Technology to Meet EPA 2010

CustomerCustomerNeedsNeeds

Diverse applicationsPower rangeBest value

Evolution of 2007 technology Proven SCR aftertreatment

UptimeOperational efficiencyLow cost of ownership

Evolution of 2007 technologyNo NOx aftertreatmentHD XPI fuel system

11

Cummins Emission Solutions

12

Components Segment

New products launchedIndustry leading technologyCapacity expansionGrow with CMI and non-CMI engine volumesLeverage global distribution to grow aftermarket

Specialty Filtration6%Air Intake

Systems9% Turbocharger

29%

FuelSystems

14%

EngineFiltration

17%

AcousticExhaust

10%


2007 Revenue by Product

Catalytic Exhaust15%

13

What We Do For Customers

with

Cost Effectively SolveTheir Emissions Challenges

World-Class AftertreatmentTechnology And Service

14

Vehicle, engine and aftertreatment . . . a single system designed to optimize performance, reliability, cost and emissions

System Integration is Critical

Controls IntegrationEnvironment

15

Why Are Customers Responding?

The task is dauntingFunctionality in ALL applicationsReliabilityDurabilityServiceabilityIntegration with controls, engines and vehiclesNoiseSafety

16

CES Capabilities

DesignControls – hardware and softwareComponents – dosing systemsReliabilitySourcing scale

17

Success For EPA2007 – Euro IV

– 10 engine platforms

– More than 100 vehicle manufacturers

– Capacity for 200,000+ units for medium-duty/heavy-dutyin North America

– Capacity for 150,000+ units in Europe

– China, Brazil expansion

18

Leadership Position in Medium-duty / Heavy-duty Truck AftertreatmentEPA 2007 Market Share Euro 4 Market Share

CES45%

22%

12%

16%

5%

CES27%

19%

15%

7%

8%

10%

10%

4%

19

Investing For The Future

– On-highway• 2010• Euro V / Euro VI• Euro IV in Brazil, India, China

– Off-highway• Tier 4 – North America,

Western Europe, Japan

20

Cummins Power Generation Auxiliary Power Units

21

Power Generation Segment

Commercial58%

Alternators20%

Rental2%

Consumer11%

PowerElectronics

4%Energy

Solutions5%

2007 Revenue by ProductCapitalize on industry growthLeverage existing market leadershipEstablish leadership in all major marketsExpand into new and adjacent markets


22

Expand Into New and Adjacent Markets

23

ComfortGuard APU System

Integrated system which eliminates the need to idle the main vehicle engineReduces fuel consumption up to 80%, compared to idling the main enginePayback period of 1-2 yearsUtilize proven small kw diesel platform used in all Consumer marketsSuccessfully launched in 2007– Considered among the market leaders by

end of first year– Secured first fit availability with Volvo

Trucks N.A.

24

Cummins Poised for Growth, Even in Down Market

0

5

10

15

20

25

30

35

2003 2006 2008E

Uni

ts (T

hous

ands

)

APU Business connected to North America Truck MarketCummins channel more capable todayFirst fit sales with VolvoCARB approval for Integrated DPF solution, first approved systemComfortGuard is one part of a portfolio of Cummins solutions to address idling

APU Market Size

25

Cummins Delivers the Right Technology– On Time, Every Time –

We have developed the best solutions in the market for the EPA ’07 and ‘10 emissions regulations

Customers recognize Cummins for our technology leadership and dependability

We are investing in the next generation of profitable growth opportunities in global on-highway markets

26

Thank You for Your Interest in

For Additional Information Contact:Dean Cantrell, Director – Investor Relations

(812) 377-3121 [email protected]

www.Cummins.com

Appendix

28

Cummins Inc.

Macro growth trends play to Cummins’strengthsDisciplined investment for growthDemonstrated technology leadership

ComponentsSegment 19%

EngineSegment 52%

Power GenSegment 19%

DistributionSegment 10%

2007 DataSales: $13.0 billionEBIT: $1,227 millionEBIT Margin: 9.4%

2007 Revenue by Segment

29

Cummins Inc.

Mexico/Latin America

9%

Africa/Middle East5%Canada

3%

United States46%

Asia/Australia19%

Europe/CIS18%

2007 Revenue by Marketing TerritoryInternational revenue is 54% of consolidated revenue in 2007Most international areas growing at double digit rateDemonstrates our geographic diversity

30

Cummins – Historical Performance

$181

$543

$907

$1,179$1,227

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2003 2004 2005 2006 2007

$ M

illon

s

$6,296

$8,438

$9,918

$11,362

$13,048

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2003 2004 2005 2006 2007

$ M

illon

s

EBITSales

31

Engine Segment

Emission regulations create opportunitiesEmerging marketsStrategic OEM partnershipsNew engine platformsAftermarket revenue creates stable earnings High

Horsepower(19-91L) 17%

Midrange(3-9L) 40%

Heavy-Duty(10-15L) 22%

Parts andService 21%



32

Engine Segment

Gaining market share in on-highway marketsIndustrial markets supported by non-residential construction and commodity marketsExpanding capacity to meet growing demand

Light-duty Automotive & RV 16%

Heavy-dutytruck 24%

Medium-dutyTruck & bus 16%

StationaryPower 11%

2007 Revenue by Market Application

Construction& Ag 18%

Mining/RailGovt/O&G

Marine 15%


33

Engines – Historical Performance

$62

$328

$582

$733

$589

$0

$100

$200

$300

$400

$500

$600

$700

$800

2003 2004 2005 2006 2007

$ M

$3,582

$5,424

$6,657

$7,511$8,182

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

2003 2004 2005 2006 2007

$ M

Segment EBITSales

34

Power Generation Segment

Commercial58%

Alternators20%

Rental2%

Consumer11%

PowerElectronics

4%Energy

Solutions5%

2007 Revenue by ProductCapitalize on industry growthLeverage existing market leadershipEstablish leadership in all major marketsExpand into new and adjacent markets


35

Power Generation – Historical Performance

($19)

$60

$145

$220

$334

($50)

$0

$50

$100

$150

$200

$250

$300

$350

$400

2003 2004 2005 2006 2007

$ M

$1,329

$1,842$1,999

$2,416

$3,060

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2003 2004 2005 2006 2007

$ M

Segment EBITSales

36

Components Segment

New products launchedIndustry leading technologyCapacity expansionGrow with CMI and non-CMI engine volumesLeverage global distribution to grow aftermarket

Specialty Filtration6%Air Intake

Systems9%

Turbocharger29%

FuelSystems

14%

EngineFiltration

17%

AcousticExhaust

10%



CatalyticExhaust

15%

37

Components – Historical Performance

$86 $84 $89

$107

$153

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

2003 2004 2005 2006 2007

$ M

$1,292

$1,783$2,000

$2,281

$2,932

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2003 2004 2005 2006 2007

$ M

Segment EBITSales

38

Distribution Segment

Continue acquisitions, consolidations and integrationsLeverage Cummins equipment growthWorld-class customer supportBuild capabilities – invest in growing regions

Parts,Filters, &

Consumables37%

Service17%

Engines21%

PowerGeneration

25%



39

Distribution – Historical Performance

$51

$79

$107

$144

$187

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2003 2004 2005 2006 2007

$ M

$669

$973

$1,191

$1,385

$1,540

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2003 2004 2005 2006 2007

$ M

Segment EBITSales

40

Joint Venture Sales Unconsolidated

$529

$1,474

$1,285$1,232

$1,940

$0

$500

$1,000

$1,500

$2,000

$2,500

2003 2004 2005 2006 2007

$ M

illio

ns $1,316

$1,029$1,204

$1,715

$2,497

$3,435

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2003 2004 2005 2006 2007

$ M

illio

ns

Engines Distribution

In 2003, sales from certain JVs (colored red above) were treatedas unconsolidated; adoption of FIN 46R in 2004 required the company to consolidate the results of certain JVs.

41

$162

$72

$105

$130

$166

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

2003 2004 2005 2006 2007

$ M

illio

ns

$72

$94

$110$123

$175

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2003 2004 2005 2006 2007

$ M

illio

ns

Joint Venture Sales Unconsolidated

Power Generation Components

Non-GAAP Reconciliations

43

Non-GAAP Reconciliation – EBIT

We define EBIT as earnings before interest expense, provision for income taxes and minority interests in earnings of consolidated subsidiaries. We use EBIT to assess and measure the performance of our operating segments and also as a component in measuring our variable compensation programs. The table above reconciles EBIT, a non-GAAP financial measure, to our consolidated earnings before income taxes and minority interests, for each of the applicable periods.

We believe EBIT is a useful measure of our operating performance for the periods presented as it illustrates our operating performance without regard to financing methods, capital structure or income taxes. This measure is not in accordance with, or an alternative for, accounting principles generally accepted in the United States of America (GAAP) and may not be consistent with measures used by other companies. It should be considered supplemental data.

$ 1,169

$ 58

$ 1,227

2007

$ 91

$ 90

$ 181

2003

$ 1,083$ 798$ 432Earnings before income taxes and minority interests

$ 96$ 109$ 111Less: Interest Expense

$ 1,179$ 907$ 543EBIT

200620052004Millions

Years Ended

Economy & Finance

Investor%20Presentation%20%20MATS%203-27-08%20-%20FINAL