1. A New Cummins
Tim Solso
Chairman and Chief Executive Officer
Citigroup's 19th Annual Global
Industrial Manufacturing Conference
March 8, 2006

2. Disclosure Regarding Forward-Looking
Statements & non-GAAP Financial Measures
This presentation contains certain forward-looking information.
Any forward-looking statement involves risk and uncertainty.
The Company’s future results may be affected by changes in general
economic conditions and by the actions of customers and competitors.
Actual outcomes may differ materially from what is expressed in any
forward-looking statement. A more complete disclosure about
forward-looking statements begins on page 60 of our 2005 Form 10-K,
and it applies to this presentation.
This presentation contains certain non-GAAP financial measures such
as earnings before interest and taxes (EBIT). Please refer to our
website (www.cummins.com) for the reconciliation of EBIT to GAAP
financial measures.

3. Delivering on Commitments
Target 2005
Revenue Growth 8% - 10% 18%
EBIT Margin 7% - 10% 9%
Cap Ex < D&A 63% of D&A
Debt to Capital Ratio 30% - 40% 42%
Credit Rating Investment S&P BBB-
Grade Moody Ba1
ROE 18% 26%
ROANA 22% 27%

4. Delivering on Commitments
l de r
400 o
areh 5
h
tal S 003 - 0
o
ge T for 2
350
vera turn
A
50%
Re
300
Stock Price Index
250
200
150
100
50
Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05
CMI S&P 500 Peer Avg.

5. Delivering on Commitments
• Six Sigma
• Market share
gains
• Best products
• Recognition

6. Key Strategic Principles
• Increase Profitability
• Leverage
Complementary and Cash Flow
Businesses
• Reduce Debt and
• Create
Invest in Growth
Shareholder Value
• Low-Cost Producer • Create
Shareholder Value
• Grow in
Related Markets
• Performance Ethic

7. P/E Valuation – Opportunity
16 14.5 14.1
13.0
14
12
P/E Multiplier
9.8
8.7
10 8.1
8
6
4
2
0
1999 2005 2006
CMI Peer Group

8. Investment Community Perception
• Cyclicality
• Volatility in performance
• Cash management
• OEM vertical integration
• ’07 emission impact

9. North America Heavy-duty Truck
Total Revenue
1999 2005
14%
19%
81% 86%
NA HD Truck Original Equipment Sales
Sales to All Other Markets

10. Heavy Duty Engine Business
Low Point 2005
Revenue $1.18B $2.43B
EBIT From loss to significant contribution
NA Market Share 21% 26%
Build Rate 135/day 430/day
PED 8.6 3.6
Inventory Turns 30.2 36.7
Break Even Point Reduced by more than 50%

11. Growing Stable Diversified Earnings
• Larger contributor to
EBIT
total EBIT
$1,000 $907M
• Less cyclical
$750
US$ Millions
• Growth demonstrates
$500
return on investment
$316M*
– Distribution Channel
$250
– Emerging Markets
$0 – Aftermarket
1999* 2005
Stable Cyclical
* Excludes restructuring charges

12. Distribution Ownership – 1999
Company-owned
Joint Venture
Independent

13. Distribution Ownership – Today
Company-owned
Joint Venture
Independent

14. Growing Total China Sales to
$3B by 2010
• Well Positioned
1200
R
AG for Future Growth
%C
26
1000
– East Asia R&D Center
US$ Millions
800
– Medium duty
600
electronic products
400
– Heavy duty entry
200
– Expanded component
manufacturing
0
2000 2001 2002 2003 2004 2005
Consolidated Unconsolidated
Net Sales JV Net Sales

15. Growing Total India Sales to
$2B by 2010
• Well Positioned
900
for Future Growth
GR
800
CA
%
18 – Increased exports
700
US$ Millions
600
– Local electronic
products
500
400 `
– Major capacity
300
increases
200
• TCL ISB Engines 45%
100
• Turbochargers 46%
0
• KV Engines 70%
2000 2001 2002 2003 2004 2005
Consolidated Unconsolidated
Net Sales JV Net Sales

16. Profitable Joint Venture Growth
Number of Unconsolidated JV's Earnings from Unconsolidated JV's
40 140
35 120
30 100
25 80
20
60
15
40
10
20
5
0
0 1999 2005
-20
1999 2005
-40

17. Growth in Chrysler Shipments
180,000
160,000
140,000
GR
CA
120,000
24%
100,000
80,000
60,000
40,000
20,000
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

18. Focused Cash Management
Operating Cash Flow
$800
$760
• Building a Strong
$700
$614
Balance Sheet
$600
$500
• Investing in growth
$472
Millions USD
$400
• Returning value to
$307
$300
our shareholders
$193
$200
$158
$152
$100
$0
1999 2000 2001 2002 2003 2004 2005

19. Building a Strong Balance Sheet
• Reducing Debt $292M in 2005
At least $250M in 2006
• Funding Liabilities Pension funding:
$151M in 2005
$170-180M in 2006

20. Investing in Growth
Capital Expenditures
$450 300%
$405
$400
250%
$304
$350
Capex in millions USD
Capex as % of D&A
$271
$300 200%
$223
$250
$228
$250
$215 $206 150%
$186
$200
$151
$150 100%
$90 $111
$100
50%
$50
$0 0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006F

21. Focusing Capital on Returns
8% 30%
7% 25%
6%
Capex/Revenue (%)
20%
5%
ROANA
15%
4%
10%
3%
5%
2%
0%
1%
0% -5%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
ROANA % Capex/Revenue (%)

22. Returning Value to Shareholders
Total Shareholder Returns at
12/31/05
60%
• Dividends
50%
40%
30%
• Share repurchase
20%
10%
0%
-10%
-20%
1 year 2 year 3 year
CMI S&P 500 Index Peer Average

23. Living With Vertical Integration
• Cost
• Brand
• Global presence
• Technology

24. Confident about 2007
• No major change in product platform
• No degradation of fuel economy
• Proactively assuring customers of reliability
• Field testing with end-users well underway
• Limited OEM capacity to support pre-buy
• Growing markets and share gains

25. This is the New Cummins
Profitable
Global
Power-Generation
Engine Business
Business
Strong Global
Growing Key
Distribution
Technologies in
Network
Components

26. A New Cummins

27. Appendix

28. Engine Segment
2005 Revenue by Market 2005 Revenue by Product
High Horsepower
(19-91L) 18%
Heavy-Duty
Truck 36%
Light-Duty /
RV 19%
Midrange
(3-9L) 45%
Heavy-Duty
(10-15L) 37%
Construction /
Mining / Marine /
Ag 17%
Rail / O&G /
Govt 13%
Medium-Duty Truck
and Bus 15%
2005 Segment Data
Sales: $6.7 billion
EBIT: $582 million
EBIT Margin: 8.7% (Target: 7-10%)

29. Power Generation Segment
2005 Revenue by Market 2005 Revenue by Product
Alternators
18%
Distributed
Power
Rental
Commercial 3%
54%
Consumer
16%
Mobile
Power Standby
Power Power
Electronics
6%
Energy
Solutions 3%
2005 Segment Data
Sales: $2.0 billion
EBIT: $145 million
EBIT Margin: 7.3% (Target: 7-9%)

30. Distribution Segment
2005 Revenue by Product
Service
• Broadening product 18%
offering Engines
21%
• Expanding global
coverage
• Increasing equity Parts,
Filters, &
ownership Consumables
Power
41%
• Excelling in Generation
20%
customer support
2005 Segment Data
Sales: $1.2 billion
EBIT: $107 million
EBIT Margin: 9.0% (Target: 8-10%)

31. Components Segment
2005 Revenue by Product
• Strategic advantage
Specialty
Filtration 5%
Air Intake
in emissions
Systems 11% Turbocharger
compliance
26%
• Significant future
growth in revenue
Exhaust
Systems
and earnings
18%
• New product
introductions
Fuel
Systems
16%
Engine
Filtration 22% 2005 Segment Data
Sales: $2.0 billion Fuel
EBIT: $89 millionSystems
EBIT Margin: 4.5% 11%
(Target: 7-9%)

32. Non-GAAP Reconciliation –
EBIT
Millions Three Months Ended For the Years Ended
Dec. 31, Dec. 31, Sept. 25, Dec. 31, Dec. 31,
2005 2004 2005 2005 2004
Earnings before interest, income taxes, minority $ 269 $ 172 $ 240 $ 907 $ 543
interest and restructuring charges
Restructuring, asset impairment and other $ - $ - $ - $ - $ -
Earnings before interest, income taxes and $ 269 $ 172 $ 240 $ 907 $ 543
minority interest
Interest Expense $ (26) $ (30) $ (27) $ (109) $ (111)
Provision for income taxes $ (63) $ (12) $ (61) $ (216) $ (56)
Minority Interests in earnings of unconsolidated $ (13) $ (11) $ (7) $ (32) $ (26)
subsidiaries
Net Earnings $ 167 $ 119 $ 145 $ 550 $ 350
EBIT = Earnings before interest, taxes, and minority interests.
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 net earnings, for each of the applicable periods.

33. Non-GAAP Reconciliation – Net
Assets
Millions Dec. 31, Dec. 31, Sept. 25,
2005 2004 2005
Net assets for operating segments $ 3,479 $ 3,151 $ 3,312
Liabilities deducted in computing net assets 3,354 3,168 3,421
Minimum pension liability excluded from net (837) (826) (826)
assets
Deferred tax assets not allocated to segments 863 990 928
Debt-related costs not allocated to segments 26 27 27
Total assets $ 6,885 $ 6,510 $ 6,862

34. Non-GAAP Reconciliation – ROANA
Millions Three Months For the Year
Ended Ended
Dec. 31, 2005 Dec. 31, 2005
Earnings before interest, income taxes and $ 269 $ 907
minority interest
Net Assets for operating segments at 3,312 3,151
beginning of period
Net Assets for operating segments at end of 3,479 3,479
period
Average Net Assets for operating segments 3,396 3,315
for period
ROANA 32% 27%