The document provides details from Cummins Inc.'s first quarter 2007 earnings teleconference call. It includes: 1) Introductions from Cummins leadership and details on forward-looking statements and non-GAAP measures. 2) Financial highlights for each business segment, noting sales and earnings growth or declines compared to Q1 2006. 3) Consolidated financial results for Cummins, guidance for 2007, and investments to support future growth. 4) Questions were taken from participants on the call.

1. First Quarter 2007
Earnings
Teleconference
April 27, 2007

2. Participants
Tim Solso Chairman and Chief Executive Officer
Jean Blackwell Chief Financial Officer
Joe Loughrey Chief Operating Officer
Tom Linebarger President – Cummins Power Generation
Dean Cantrell Director – Investor Relations
2

3. 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 61 of our 2006 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 those measures to GAAP
financial measures.
3

4. Long-term Targets*
Power Generation Sales growth: 8-10%
EBIT margin: 7-9%
Segment
Selected Financial Data
Change Change
$ Millions Q107 Q106 Amount Percent
Sales 675 536 139 26%
EBIT 77 45 32 71%
% of Sales 11.4% 8.4%
Commercial generator sets and alternator equipment strength in North
America, the Middle East, Europe, Russia, India and Latin America
Consumer growth as portables, residential standby, and auxiliary power
units offset softness in RV and recreational marine
Energy Solutions business sales growth in Europe and the Middle East
Strong price realization for commercial generator sets and alternators
*Targets represent averages across the economic cycle 4

5. Long-term Targets*
Engine Segment Sales growth: 6-8%
EBIT margin: 7-10%
Selected Financial Data
Change Change
$ Millions Q107 Q106 Amount Percent
Sales 1,765 1,821 (56) (3%)
EBIT 128 179 (51) (28%)
% of Sales 7.3% 9.8%
On-highway revenue down 20% due to North American emission regulation
Off-highway revenue up 28% with growth in nearly all markets
Lower gross margins due to higher initial new product costs and loss of
volume leverage in heavy-duty business
Investing in new growth opportunities and additional capacity
*Targets represent averages across the economic cycle 5

6. Engine Segment
Sales by Market – On-highway
Change Change
$ Millions Q107 Q106 Amount Percent
Heavy-duty truck 424 608 (184) (30%)
Medium-duty truck and bus 206 215 (9) (4%)
331 (43) (13%)
Light-duty automotive 288
Total on-highway 918 1,154 (236) (20%)
Global heavy-duty truck shipments down 45%; North America down 58%
Medium-duty truck shipments down 7% with strength in Brazil partially
offsetting weakness in North America
Bus shipments up 16% due to North America school bus and international
transit bus
Light-duty automotive shipments down 27% as the North American pick-up
truck market continues to manage overall dealer inventory
6

7. Engine Segment
Sales by Market – Off-highway
Change Change
$ Millions Q107 Q106 Amount Percent
Total off-highway 617 481 136 28%
Total shipments up 19% with double-digit growth in nearly all markets
Construction equipment shipments up 25% from strength in international
markets
Shipments for mining up 14% with growth in Eastern Europe and China
Oil & Gas revenue growing faster than volume with growth in high-
horsepower engines
Increasing high-horsepower capacity 15% by mid 2008
7

8. Long-term Targets*
Distribution Segment Sales growth: 10%
EBIT margin: 8-10%
Selected Financial Data
Change Change
$ Millions Q107 Q106 Amount Percent
Sales 309 317 (8) (3%)
EBIT 39 31 8 26%
% of Sales 12.6% 9.8%
Sales up 12%, excluding the reporting change of a North American
distributor, driven primarily by Europe and the South Pacific
Earnings from joint ventures increased 89% due to strong performance from
our North American distributors, particularly with sales of power generation
equipment
New acquisitions in Spain and Turkey and new joint ventures in the
Southeast United States, Nigeria and Thailand during the first quarter
*Targets represent averages across the economic cycle 8

9. Long-term Targets*
Components Segment Sales growth: 8-10%
EBIT margin: 7-9%
Selected Financial Data
Change Change
$ Millions Q107 Q106 Amount Percent
Sales 657 555 102 18%
EBIT 24 31 (7) (23%)
% of Sales 3.7% 5.6%
Growth from Emission Solutions (up $54M) and Turbo Technologies (up $37M)
on sales of new products to meet emission standards
Emission Solutions leveraged higher volume to improved margins
Fuel Systems challenged by startup costs for new joint venture and lower heavy-
duty volumes
New product introduction, metal market cost increases, and aggressive
production ramp up at Turbo Technologies negatively impacted gross margins
*Targets represent averages across the economic cycle 9

10. Cummins Inc.
Selected Income Statement Data
Q107 Q106
Net Earnings ($M) 143 135
Earnings Per Share $1.42 $1.35
Product Coverage (% of Net Sales) 2.3% 3.1%
Gross Margin (% of Net Sales) 19.6% 21.1%
SAR (% of Net Sales) 12.9% 13.1%
Earnings before interest and taxes (EBIT) at 8.6% of sales, well within
our targeted range of 7 to 10 percent
Lower interest expense helped net earnings grow 6%
Gross margins lower due to high initial new product costs, partially
offset by higher pricing for new products
10

11. Joint Venture Income
$ Millions Q107 Q106
Engine 17 17
On-highway 9 11
Off-highway 5 5
Rec. Marine 3 1
Power Generation 3 3
Distribution 17 9
2
Components (1)
Total JV Income 36 31
Recreational marine up on European market share growth
Distribution increased 89% on strength of power generation equipment sales
in North America and contribution from newer joint ventures
11

12. Cash Flow
Q107 Q106
18
Operating Cash Flow ($M) (113)
52
Capital Expenditures ($M) 48
Pension Funding ($M) 61 41
Share Repurchase ($M) 13 36
Working Capital (% of Net Sales) 20.0% 17.3%
Cash flow strategy to maintain a strong balance sheet, including funding our
liabilities; invest in profitable growth; and return value to our shareholders
Working capital net cash outflow of $192 million in Q107 compared to net cash
outflow of $161 million in Q106
12

13. Guidance for 2007
Consolidated Results
Item Full Year Guidance
Earning per Share $6.00 to $6.50
Revenue Up 5% to 7%
Joint Venture Earnings Up 10%
Effective Tax Rate 33%
Capital Expenditures ($M) $320 to $350
Global Pension Funding ($M) $230 to $240
13

14. Guidance for 2007
Segment Results
Power
Distribution
Item Engine Generation Components
Revenue Flat Up 15-18% Up 18-22% Up 7-10%
Joint Venture
Down ~5% Up ~8% None Up ~40%
Earnings
Slightly
Below the
EBIT Relative Above top Above top
below or at
low end of
to Target end of target end of target
low end of
target range
Range range range
target range
14

15. Confident in our ability to perform in
2007 and beyond
We have fundamentally changed our
business model
We did what we said we would do
We are investing in the next generation of
profitable growth opportunities
15

16. Revenue from International Markets
offset Decline in US & Canada
2,900
2,817
+99
2,800
+65
2,678
(197)
Revenue ($ M)
2,700 +172
2,600
2,500
2,400
Asia & Q1 '07
Q1 '06 US & EMEA Latin
Australia
Canada America &
Mexico
16

17. Confident in our ability to perform in
2007 and beyond
We have fundamentally changed our
business model
We did what we said we would do
We are investing in the next generation of
profitable growth opportunities
17

18. Growth from new engine platforms
1,400
Engine Production (Thousands)
1,200
1,000
800
600
400
200
0
2006 Organic New 2010
Growth Platforms
18

19. Investment in capacity for current
and future products
CMI Capital Spending JV Capital Spending
250 - 325
320 - 350
249
186
107
82
2005 2006 2007 2005 2006 2007
19

20. SAVE THE DATE
CMI Analyst Day
Tuesday, September 18, 2007
Heavy-duty Engine Plant
Jamestown, NY
Contact Information:
Dean Cantrell
Director – Investor Relations
(812) 377-3121
Investor_Relations@Cummins.com
www.cummins.com
20

21. Thank You for Your Interest in
Cummins
We will now take your questions.
Contact Information:
Dean Cantrell
Director – Investor Relations
(812) 377-3121
Investor_Relations@Cummins.com
www.cummins.com
21

22. Non-GAAP
Reconciliations

23. Non-GAAP Reconciliation – EBIT
Three Months Ended
Millions April 1, April 2, December 31,
2007 2006 2006
Segment EBIT $ 243 $ 255 $ 303
Less: Interest Expense $ 16 $ 27 $ 20
Earnings before income taxes and minority $ 227 $ 228 $ 283
interests
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
earnings before income taxes and minority interests, for each of the applicable periods.
23

24. Non-GAAP Reconciliation – EBITDA
Three Months Ended
Millions April 1, April 2, December 31,
2007 2006 2006
Segment EBIT $ 243 $ 255 $ 303
Depreciation & Amortization $ 68 $ 74 $ 74
EBITDA $ 311 $ 329 $ 377
EBITDA = Earnings before interest, taxes, minority interests, depreciation, and amortization.
24

25. Non-GAAP Reconciliation – Cash From
Operations Excluding Pension Contributions
Three Months Ended
Millions April 1, 2007 April 2, 2006
Cash provided by operations $ (113) $ 18
Add back: pension contributions $ 61 $ 41
Cash provided by operations
$ (52) $ 59
excluding pension contributions
We believe cash provided by operations excluding pension contributions is a useful measure of our operating performance for
the periods presented as it illustrates our operating performance without regard to funding decisions. This measure is not in
accordance with, or an alternative for, GAAP and may not be consistent with measures used by other companies. It should
be considered supplemental data.
25

26. Non-GAAP Reconciliation – Net
Assets
April 1, April 2,
Millions
2007 2006
Net assets for operating segments $ 4,041 $ 3,609
Liabilities deducted in computing net assets 3,516 3,385
Minimum pension liability excluded from net assets - (837)
Pension and other postretirement liabilities (824) -
Deferred tax assets not allocated to segments 689 814
Debt-related costs not allocated to segments 26 26
Total assets $ 7,448 $ 6,997
26

27. Non-GAAP Reconciliation – Equity Used for
Return on Equity Calculation
April 1, April 2,
Millions
2007 2006
Equity used for return on equity calculation $ 3,480 $ 2,501
less Defined other postretirement benefits 5 -
less Defined benefit pension plans 538 -
less Minimum pension liability adjustment - 523
Total shareholder’s equity $ 2,937 $ 1,978
27

28. Appendix

29. Long-term Targets*
Sales growth: 8-10%
Cummins Inc. EBIT margin: 7-10%
ROANA: 22%
Selected Financial Data ROE: 18%
Change Change
$ Millions Q107 Q106 Amount Percent
Sales 2,817 2,678 139 5%
EBIT 243 255 (12) (5%)
% of Sales 8.6% 9.5%
ROANA 31% 30%
ROE 24% 26%
Global customer demand leading to growth in nearly every market
Improved cost structure results in all profitability targets to be met or
exceeded
Investing in profitable growth opportunities in each operating
segment, and in domestic and international markets
*Targets represent averages across the economic cycle 29

30. Cummins Inc.
Q1 2007 LTM Revenue by Segment
Components
Q1 2007 – Great Quarter Segment 17%
Strong global demand Engine
for our product Segment 54%
Distribution
Year-over-year Segment 10%
growth in revenue
and earnings
Investing in profitable
growth opportunities
Power Gen
Segment 19%
Q1 2007 LTM Data
Sales: $11.5 billion
EBIT: $1,167 million
EBIT Margin: 10.1% (Target: 7-10%)
30

31. Cummins Inc.
Q1 2007 LTM Revenue by Marketing Territory
Africa/Middle East
International revenue Canada 5%
6%
is 49% of consolidated
revenue Mexico/Latin
America
International revenue 8%
was 54% in the first
quarter
United States
Most international 49%
areas growing at Asia/Australia
17%
double digit rate
Europe/CIS
15%
31

32. Cummins – Historical Performance
Sales EBIT
$14,000 $1,400
$11,501 $1,179 $1,167
$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 Q1 '07 2003 2004 2005 2006 Q1 '07
LTM LTM
32

33. Engine Segment
Q1 2007 LTM Revenue by Product
Emission regulations Parts and
Service 21%
create opportunities Midrange
(3-9L) 37%
Aftermarket revenue
creates stable earnings
Emerging markets
Strategic OEM
partnerships High
Horsepower
(19-91L) 15%
Q1 2007 LTM Segment Data
Heavy-Duty
Sales: $7.5 billion (10-15L) 27%
EBIT: $682 million
EBIT Margin: 9.1% (Target: 7-10%)
33

34. Engine Segment
Q1 2007 LTM Revenue by Market Application
Heavy-duty Truck Stationary
Power 10%
demand remains strong Mining/Rail Heavy-duty
Govt/O&G truck 31%
Share gains in Medium- Marine 14%
duty Truck & Bus
Off-highway markets
supported by non- Construction
residential construction & Ag 16%
and commodity markets
Medium-duty
Light-duty Truck & bus 13%
Q1 2007 LTM Segment Data
Automotive
Sales: $7.5 billion & RV 16%
EBIT: $682 million
EBIT Margin: 9.1% (Target: 7-10%)
34

35. Engines – Historical Performance
Sales Segment EBIT
$8,000 $800
$7,511 $7,455
$733
$682
$6,657
$7,000 $700
$582
$6,000 $600
$5,424
$5,000 $500
$M
$M
$4,000 $3,582 $400
$328
$3,000 $300
$2,000 $200
$62
$1,000 $100
$0 $0
2003 2004 2005 2006 Q1 '07 2003 2004 2005 2006 Q1 '07
LTM LTM
35

36. Power Generation Segment
Q1 2007 LTM Revenue by Product
Turnaround complete Alternators
Commercial
19%
56%
Strengthening markets
Expanding market share Rental
2%
Consumer growth
opportunities
Growing project business Consumer
13%
capability
Power
Electronics
6%
Q1 2007 LTM Segment Data Energy
Sales: $2.6 billion Solutions
4%
EBIT: $252 million
EBIT Margin: 9.9% (Target: 7-9%)
36

37. Power Generation – Historical Performance
Sales Segment EBIT
$3,000 $300
$252
$2,555
$250
$2,416
$2,500 $220
$200
$1,999
$2,000 $1,842
$145
$150
$M
$M
$1,500 $1,329
$100
$60
$1,000
$50
$500
$0
($19)
$0 ($50)
2003 2004 2005 2006 Q1 '07 2003 2004 2005 2006 Q1 '07
LTM LTM
37

38. Components Segment
Q1 2007 LTM Revenue by Product
Specialty
Strategic advantage in Filtration
6%
Air Intake
emissions compliance Systems
Turbocharger
11%
Significant future growth 27%
in revenue and earnings
Multiple new product
Acoustic
introductions Exhaust
12%
Winning non-CMI Fuel
business Systems
16%
Engine
Filtration
Q1 2007 LTM Segment Data Catalytic
20%
Sales: $2.4 billion Exhaust
EBIT: $100 million 8%
EBIT Margin: 4.2% (Target: 7-9%)
38

39. Components – Historical Performance
Sales Segment EBIT
$120
$3,000
$107
$100
$2,383 $100
$2,500
$2,281 $89
$86 $84
$2,000
$80
$2,000
$1,783
$M
$M
$60
$1,500 $1,292
$40
$1,000
$20
$500
$0
$0
2003 2004 2005 2006 Q1 '07
2003 2004 2005 2006 Q1 '07
LTM
LTM
39

40. Distribution Segment
Q1 2007 LTM Revenue by Product
Service
Broadening product 18%
offering Engines
20%
Expanding global
coverage
Increasing equity
ownership
Excelling in customer Parts,
support Filters, &
Consumables
Power
37%
Generation
Q1 2007 LTM Segment Data 25%
Sales: $1.4 billion
EBIT: $152 million
EBIT Margin: 11.0% (Target: 8-10%)
40

41. Distribution – Historical Performance
Sales Segment EBIT
$1,600 $160 $152
$144
$1,385 $1,377
$1,400 $140
$1,191
$1,200 $120
$107
$973
$1,000 $100
$79
$M
$M
$800 $80
$669
$600 $60 $51
$400 $40
$200 $20
$0 $0
2003 2004 2005 2006 Q1 '07 2003 2004 2005 2006 Q1 '07
LTM LTM
41