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  • 1. Every Promise. Delivered. Mid-America Truck Show March 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 2
  • 3. Engine Segment 2007 Revenue by Market Application Gaining market share in Stationary on-highway markets Power 11% Heavy-duty Industrial markets truck 24% Mining/Rail supported by non- Govt/O&G residential construction Marine 15% and commodity markets Expanding capacity to meet growing demand Construction Medium-duty & Ag 18% Truck & bus 16% 2007 Segment Data Light-duty Sales: $8.2 billion Automotive EBIT: $589 million & RV 16% EBIT Margin: 7.2% 3
  • 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 4
  • 5. North American Heavy-Duty Truck Shipments Engine Market Share*, January 2008 50 1998-2006 2007-2008 CMI 45 Annual Share Jan ‘08 40 44.0% 35 Cummins 30 Percent Share DDC Cat 25 Mack Volvo 20 MBE 15 10 5 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Total Total Total Total Total Total Total Total Total 07 07 07 07 07 07 07 07 07 07 07 07 08 5 * Wards NA Heavy Duty (Class 8 Group 2) Market Share
  • 6. Market Share 0 10 20 30 40 50 60 70 2000 2001 2002 2003 2004 2005 2000 – 2005 Jan-06 Feb-06 Mar-06 Apr-06 Cummins May-06 Jun-06 Jul-06 2006 Aug-06 Sep-06 Caterpillar Oct-06 Nov-06 Dec-06 January 2008 Hino Jan-07 Feb-07 Mar-07 MBE Apr-07 May-07 Jun-07 Class 7 MDT Engine Market Share* Jul-07 ITEC 2007 Aug-07 Sep-07 Oct-07 *Ward’s Class 7 NAFTA truck shipments Nov-07 Dec-07 Jan-08 6
  • 7. Designing For Medium-Duty Customers Reliability Total cost of ownership Low maintenance Power density Overall Best Value Sociability Safe operation Weight/space Minimal driver training Ease of operation Information systems Emissions compliance 7
  • 8. Designing Engines For The Heavy-Duty Market High uptime Low fuel consumption Operational efficiency High residual value Lowest Cost of Ownership High performance Safe operation Ease of operation Driver satisfaction Information systems Sociability Emissions compliance 8
  • 9. Complementing Proprietary Offerings We won’t compete with our OEMs – we help them sell more trucks 9
  • 10. The Right Technology Integrated Technology to Meet EPA 2010 Mid-Range Heavy-Duty Engines Engines Customer Diverse applications Uptime Needs Power range Operational efficiency Best value Low cost of ownership Evolution of 2007 technology Evolution of 2007 technology Proven SCR aftertreatment No NOx aftertreatment HD XPI fuel system 10
  • 11. Cummins Emission Solutions 11
  • 12. Components Segment 2007 Revenue by Product New products launched Specialty Filtration 6% Industry leading Air Intake Systems technology 9% Turbocharger Capacity expansion 29% Acoustic Grow with CMI and non- Exhaust CMI engine volumes 10% Leverage global distribution to grow aftermarket Engine Fuel Filtration Systems 17% 14% 2007 Segment Data Sales: $2.9 billion Catalytic Exhaust EBIT: $153 million 15% EBIT Margin: 5.2% 12
  • 13. What We Do For Customers Cost Effectively Solve Their Emissions Challenges with World-Class Aftertreatment Technology And Service 13
  • 14. System Integration is Critical Environment Controls Integration Vehicle, engine and aftertreatment . . . a single system designed to optimize performance, reliability, cost and emissions 14
  • 15. Why Are Customers Responding? The task is daunting Functionality in ALL applications Reliability Durability Serviceability Integration with controls, engines and vehicles Noise Safety 15
  • 16. CES Capabilities Design Controls – hardware and software Components – dosing systems Reliability Sourcing scale 16
  • 17. Success For EPA2007 – Euro IV – 10 engine platforms – More than 100 vehicle manufacturers – Capacity for 200,000+ units for medium-duty/heavy-duty in North America – Capacity for 150,000+ units in Europe – China, Brazil expansion 17
  • 18. Leadership Position in Medium-duty / Heavy-duty Truck Aftertreatment EPA 2007 Market Share Euro 4 Market Share 4% 5% 10% CES CES 16% 45% 27% 10% 12% 8% 19% 7% 22% 15% 18
  • 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 19
  • 20. Cummins Power Generation Auxiliary Power Units 20
  • 21. Power Generation Segment 2007 Revenue by Product Capitalize on industry Alternators growth Commercial 20% 58% Leverage existing market leadership Rental 2% Establish leadership in all major markets Consumer Expand into new and 11% adjacent markets Power Electronics 4% 2007 Segment Data Energy Sales: $3.1 billion Solutions 5% EBIT: $334 million EBIT Margin: 10.9% 21
  • 22. Expand Into New and Adjacent Markets 22
  • 23. ComfortGuard APU System Integrated system which eliminates the need to idle the main vehicle engine Reduces fuel consumption up to 80%, compared to idling the main engine Payback period of 1-2 years Utilize proven small kw diesel platform used in all Consumer markets Successfully launched in 2007 – Considered among the market leaders by end of first year – Secured first fit availability with Volvo Trucks N.A. 23
  • 24. Cummins Poised for Growth, Even in Down Market APU Market Size APU Business connected to 35 North America Truck Market 30 Cummins channel more Units (Thousands) capable today 25 First fit sales with Volvo 20 CARB approval for Integrated 15 DPF solution, first approved 10 system ComfortGuard is one part of 5 a portfolio of Cummins 0 solutions to address idling 2003 2006 2008E 24
  • 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 25
  • 26. Thank You for Your Interest in For Additional Information Contact: Dean Cantrell, Director – Investor Relations (812) 377-3121 Dean.A.Cantrell@Cummins.com www.Cummins.com 26
  • 27. Appendix
  • 28. Cummins Inc. 2007 Revenue by Segment Macro growth trends Components Segment 19% play to Cummins’ strengths Engine Segment 52% Disciplined Distribution investment for Segment 10% growth Demonstrated technology leadership Power Gen Segment 19% 2007 Data Sales: $13.0 billion EBIT: $1,227 million EBIT Margin: 9.4% 28
  • 29. Cummins Inc. 2007 Revenue by Marketing Territory International revenue Africa/Middle East Canada 5% is 54% of consolidated 3% revenue in 2007 Mexico/Latin Most international America 9% areas growing at double digit rate Demonstrates our United States Asia/Australia 46% 19% geographic diversity Europe/CIS 18% 29
  • 30. Cummins – Historical Performance Sales EBIT $13,048 $14,000 $1,400 $1,227 $1,179 $12,000 $1,200 $11,362 $9,918 $10,000 $1,000 $907 $8,438 $ Millons $ Millons $8,000 $800 $6,296 $543 $6,000 $600 $4,000 $400 $181 $2,000 $200 $0 $0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 30
  • 31. Engine Segment 2007 Revenue by Product Emission regulations Parts and create opportunities Midrange Service 21% (3-9L) 40% Emerging markets Strategic OEM partnerships New engine platforms Aftermarket revenue High creates stable earnings Horsepower (19-91L) 17% 2007 Segment Data Heavy-Duty Sales: $8.2 billion (10-15L) 22% EBIT: $589 million EBIT Margin: 7.2% 31
  • 32. Engine Segment 2007 Revenue by Market Application Gaining market share in Stationary on-highway markets Power 11% Heavy-duty Industrial markets truck 24% Mining/Rail supported by non- Govt/O&G residential construction Marine 15% and commodity markets Expanding capacity to meet growing demand Construction Medium-duty & Ag 18% Truck & bus 16% 2007 Segment Data Light-duty Sales: $8.2 billion Automotive EBIT: $589 million & RV 16% EBIT Margin: 7.2% 32
  • 33. Engines – Historical Performance Sales Segment EBIT $9,000 $800 $733 $8,182 $8,000 $7,511 $700 $6,657 $589 $7,000 $582 $600 $6,000 $5,424 $500 $5,000 $M $M $400 $328 $4,000 $3,582 $300 $3,000 $200 $2,000 $100 $62 $1,000 $0 $0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 33
  • 34. Power Generation Segment 2007 Revenue by Product Capitalize on industry Alternators growth Commercial 20% 58% Leverage existing market leadership Rental 2% Establish leadership in all major markets Expand into new and Consumer adjacent markets 11% Power Electronics 4% Energy Solutions 2007 Segment Data 5% Sales: $3.1 billion EBIT: $334 million EBIT Margin: 10.9% 34
  • 35. Power Generation – Historical Performance Sales Segment EBIT $3,500 $400 $3,060 $334 $350 $3,000 $300 $2,416 $2,500 $250 $220 $1,999 $2,000 $1,842 $200 $M $M $145 $150 $1,500 $1,329 $100 $60 $1,000 $50 $500 $0 ($19) $0 ($50) 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 35
  • 36. Components Segment 2007 Revenue by Product New products launched Specialty Filtration 6% Air Intake Industry leading Systems technology 9% Turbocharger Capacity expansion 29% Acoustic Grow with CMI and non- Exhaust CMI engine volumes 10% Leverage global distribution to grow aftermarket Engine Fuel Filtration Systems 17% 14% 2007 Segment Data Catalytic Sales: $2.9 billion Exhaust EBIT: $153 million 15% EBIT Margin: 5.2% 36
  • 37. Components – Historical Performance Sales Segment EBIT $180 $3,500 $153 $160 $2,932 $3,000 $140 $2,500 $2,281 $120 $107 $2,000 $2,000 $100 $1,783 $89 $M $M $86 $84 $80 $1,500 $1,292 $60 $1,000 $40 $500 $20 $0 $0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 37
  • 38. Distribution Segment 2007 Revenue by Product Continue acquisitions, Service 17% consolidations and Engines integrations 21% Leverage Cummins equipment growth World-class customer support Build capabilities – invest in growing regions Power Parts, Generation Filters, & 2007 Segment Data 25% Consumables Sales: $1.5 billion 37% EBIT: $187 million EBIT Margin: 12.1% 38
  • 39. Distribution – Historical Performance Sales Segment EBIT $1,800 $200 $187 $180 $1,540 $1,600 $1,385 $160 $1,400 $144 $1,191 $140 $1,200 $120 $973 $107 $1,000 $M $M $100 $800 $79 $669 $80 $600 $60 $51 $400 $40 $200 $20 $0 $0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 39
  • 40. Joint Venture Sales Unconsolidated Engines Distribution $2,500 $4,000 $3,435 $3,500 $1,940 $2,000 $3,000 $2,497 $1,474 $2,500 $1,500 $ Millions $ Millions $1,316 $1,232 $1,285 $2,000 $1,715 $529 $1,000 $1,500 $1,204 $1,029 $1,000 $500 $500 $0 $0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 In 2003, sales from certain JVs (colored red above) were treated as unconsolidated; adoption of FIN 46R in 2004 required the 40 company to consolidate the results of certain JVs.
  • 41. Joint Venture Sales Unconsolidated Power Generation Components $180 $200 $166 $162 $175 $180 $160 $160 $140 $130 $140 $120 $123 $105 $120 $110 $ Millions $ Millions $100 $94 $100 $80 $72 $72 $80 $60 $60 $40 $40 $20 $20 $0 $0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 41
  • 42. Non-GAAP Reconciliations
  • 43. Non-GAAP Reconciliation – EBIT Years Ended Millions 2003 2004 2005 2006 2007 EBIT $ 181 $ 543 $ 907 $ 1,179 $ 1,227 Less: Interest Expense $ 90 $ 111 $ 109 $ 96 $ 58 Earnings before income taxes $ 91 $ 432 $ 798 $ 1,083 $ 1,169 and minority interests 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. 43