1. A New Cummins
Tim Solso
Chairman and Chief Executive Officer

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 59 of our 2004 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. Cummins Management Team
Executive Committee
• Joe Loughrey President & Chief Operating Officer
• Jean Blackwell Executive Vice President & Chief Financial Officer
• John Wall Vice President & Chief Technical Officer
• Tom Linebarger Executive Vice President & President – Power Generation
• Mark Gerstle Vice President – Corporate Quality & Chief Risk Officer
Engines
• Jim Kelly Vice President & President – Engine Business
• Ed Pence Vice President & General Manager – Heavy-duty Engine
• Dave Crompton Vice President & General Manager – MidRange Engine
• Mark Levett Vice President & General Manager – HHP Engine
• Christine Vujovich Vice President – Marketing & Environmental Policy
Power Generation
• Tony Satterthwaite Vice President – Worldwide Commercial Gensets

4. Cummins Management Team
Components
• Rick Mills Vice President & President – Components Group
• Pamela Carter Vice President & President – Fleetguard/Nelson
• Ray Amlung General Manager – Fuel Systems Business
• Paul Ibbotson Vice President & Managing Director – Holset Turbochargers
• Mike Cross Vice President & General Manager – Emission Solutions Business
Distribution
• Rich Freeland Vice President & President – Worldwide Distribution
Emerging Markets
• Steve Chapman Group Vice President - Emerging Markets and Businesses
• Anant Talaulicar Vice President & Managing Director – Cummins India Ltd.
• John Watkins Vice President & Managing Director – Cummins East Asia ABO
Corporate
• Richard Harris Vice President – Treasurer
• Marsha Hunt Vice President – Corporate Controller

5. Delivering on Commitments
Target 2005LTM
Revenue Growth 8% -10% 9.5%
EBIT Margin 6% - 9% 7.7%
Cap Ex < D&A 67% of D&A
Debt to Capital Ratio 35% - 45% 43%
Investment Grade 2005 S&P BBB-
Moody Ba1
ROE 15% 26%

6. Delivering on Commitments
er
ol d
400
ar eh 4
h
t al S 003/ 0
To r 2
ge
350
o
a
ver eturn f
A
. 4%
R
77
300
Stock Price Index
250
200
150
100
50
Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05
CMI S&P 500 Peer Avg.

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

8. 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

9. P/E Valuation – Opportunity
20
18
15
14
15
13
P/E Multiplier
10
9
10
5
0
1999 2004 2005
CMI Peer Group

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

11. Growing Stable Diversified Earnings
1999 EBIT* 2004 EBIT
$316M $543M
Stable & Diversified EBIT
Cyclical EBIT
* Excludes restructuring charges

12. Growing International Sales
Consolidated Net Sales
2004
1999
9%
14%
US Asia Mexico / Latin America Australia
Europe Canada Africa / Middle East

13. Growing International Sales
Consolidated & Unconsolidated Net Sales
1999 2004
11%
20%
US Asia Mexico / Latin America Australia
Europe Canada Africa / Middle East

14. Emerging Markets
India
China
700
1,200
GR
GR CA
600
CA %
1,000 14
%
35 500
800
US$ Millions
400
600
300
400
200
200 100
0 0
2000 2001 2002 2003 2004 2000 2001 2002 2003 2004
Consolidated Unconsolidated
Net Sales JV Net Sales

15. N. America Heavy-duty Truck
Total Revenue
1999 2004
14%
19%
81% 86%
NA HD Truck Original Equipment Sales
Sales to All Other Markets

16. Growth in Chrysler Shipments
180,000
160,000
140,000
GR
CA
120,000
2 4%
100,000
80,000
60,000
40,000
20,000
0
1988 1990 1992 1994 1996 1998 2000 2002 2004

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

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

19. Profitable Joint Venture Growth
Number of JV's Earnings from JV's
40 120
35 100
30 80
25
60
20
40
15
20
10
0
5 1999 2004
-20
0
1999 2004 -40

20. A New Cummins

21. Creating Shareholder Value
Jean Blackwell
Chief Financial Officer

22. A New Cummins
1999 2005 LTM
Sales $ 6,639m $ 9,241m
JV Income $ (27m) $ 130m
EBIT $ 260m $ 715m
PAT % 2.0% 5.1%
EPS $ 3.41 $10.10 - $10.30*
ROE 10% 26%
ROANA 11% 24%
*2005 Guidance ($9.60 EPS LTM)

23. Financial Platform
Earnings
Growth
Creating
Shareholder
Value
Focused Cash Reducing
Management Cyclicality

24. Financial Platform
Earnings
Growth
Creating
Shareholder
Value
Focused Cash Reducing
Management Cyclicality

25. Turning Sales into Higher Earnings
Total Sales
$9,241
$10,000
$8,438
$8,000
$6,639 $6,597 $6,296
$5,853
$5,681
$6,000
$4,000
$2,000
$0
($2,000)
($4,000)
LTM
1999 2000 2001 2002 2003 2004 2005
Total Sales

26. Turning Sales into Higher Earnings
Total Sales and Net Earnings
$9,241
$10,000
$560
$8,438
$8,000 $480
$6,639 $6,597 $6,296
$5,853 $400
$5,681
$6,000
$320
$4,000 $240
$160
$2,000
$80
$0 $0
($80)
($2,000)
($160)
($4,000) ($240)
LTM
1999 2000 2001 2002 2003 2004 2005
Total Sales Net Earnings

27. Growing Margin
Gross Margin
25.0%
21.0% 20.7%
19.9%
19.2%
20.0%
17.9%
17.8% 17.8%
15.0%
10.0%
LTM
1999 2000 2001 2002 2003 2004 2005

28. Controlling Expenses
Selling, Administrative and R&D Expense
20.0%
18.0%
16.6% 16.4%
16.0%
15.7%
16.0% 15.4%
14.9% 14.6%
14.0%
12.0%
10.0%
LTM
1999 2000 2001 2002 2003 2004 2005

29. Generating More from JVs
Income from Joint Ventures
$130
$140
$111
$120
$100
$70
$80
Millions USD
$60
$40
$22
$10
$20 $7
$0
($20)
($27)
($40)
LTM
1999 2000 2001 2002 2003 2004 2005

30. Growing EBIT
Earnings Before Interest and Income Tax
9.0%
7.7%
8.0%
7.0% 6.4%
6.0%
5.0%
3.9%
4.0%
2.9%
2.4%
3.0%
1.4%
2.0%
1.0%
0.0%
-1.0%
-0.8%
-2.0%
LTM
1999 2000 2001 2002 2003 2004 2005
EBIT as % of Sales Target EBIT as % of Sales

31. Increasing Earnings per Share
Guidance for 2005
$12.00
$10.10 - $ 10.30
$10.00
$7.39
$8.00
$6.00
$3.41
$4.00
$2.13
$1.27
$2.00
$0.35
$0.00
($2.00)
($2.70)
($4.00)
1999 2000 2001 2002 2003 2004 2005

32. Improving Return on Equity
30%
25.80%
25% 21.30%
20%
15%
10.00%
10% 6.90%
3.80%
5%
1.10%
0%
-5%
-10% -8.60%
-15%
LTM
1999 2000 2001 2002 2003 2004 2005
Return on Equity Target Return on Equity

33. Setting New Targets
Cummins
Sales Growth 8 % - 10 %
EBIT 7 10 %
6%-9%
ROANA 22
18 %
ROE 18 %
15
Debt to Capital 35 % - 45%
30 40%

34. Looking for the Future
With those targets, here is the view
of Cummins in 2010….
2005 2010
LTM
$ 13.5 - $ 15 B
Sales $ 9.2 B
$ 950 - $ 1,500 M
EBIT $ 715 M

35. Financial Platform
Earnings
Growth
Creating
Shareholder
Value
Focused Cash Reducing
Management Cyclicality

36. Balancing Revenue
and Income Sources
• All businesses are profitable
• Less cyclical businesses
growing faster

37. Heavy Duty Engine Business
Low Point 2005LTM
Revenue $1.18B $2.3B
EBIT From loss to significant contribution
NA Market Share 21% 26%
Build Rate 135/day 405/day
PED 8.6 3.8
Inventory Turns 30.2 37.0
Consolidation Savings > $30M annually

38. Heavy Duty Engine Business
Low Point 2005LTM
Revenue $1.18B $2.3B
EBIT From loss to significant contribution
NA Market Share 21% 26%
Build Rate 135/day 405/day
PED 8.6 3.8
Inventory Turns 30.2 37.0
Consolidation Savings > $30M annually
Reduced
Break Even
more than 50%

39. Increasing Global Presence
Total Sales
$10,000
$9,000
$8,000
$7,000 50%
Millions USD
48%
$6,000
39% 43%
$5,000 47%
46% 45%
$4,000
$3,000
50%
52%
61% 57%
$2,000 53%
55%
54%
$1,000
$0
LTM
1999 2000 2001 2002 2003 2004 2005
United States International

40. Financial Platform
Earnings
Growth
Creating
Shareholder
Value
Focused Cash Reducing
Management Cyclicality

41. Generating More Cash
from Operations
Operating Cash Flow
$700
$614
$600
$517
$472
$500
Millions USD
$400
$307
$300
$193
$200 $158
$152
$100
$0
LTM
1999 2000 2001 2002 2003 2004 2005

42. Creating a Strong Cash Position
Cash and Marketable Securities
$800
$673
$700
$600
Millions USD
$500 $457
$400
$298
$300
$195
$200
$94
$75 $64
$100
$0
2005 *
1999 2000 2001 2002 2003 2004
*Balance as of June’05

43. Cash Priorities
• Operational:
– Reducing debt
– Investing in the business
– Funding our liabilities

44. Reducing Debt Levels
Total Debt- 2005
$1,800 80%
$1,626
$1,600 70%
$1,429
$1,368
$1,400
60%
Debt in millions USD
Debt to Capital Ratio
$1,215 $1,197
$1,137
$1,200
50%
$945
$1,000
40%
$800
30%
$600
20%
$400
10%
$200
$0 0%
2005 *
1999 2000 2001 2002 2003 2004
* As of June’05

45. Using Capital Wisely
Capital Expenditures
$450
$405
$400
$350
$304
$300 $271
Millions USD
$228
$250 $223 $215 $206
$192
$200
$151
$150
$111
$90
$100
$50
$0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 LTM

46. Using Capital Wisely
CAPEX as % of Depreciation & Amortization
300%
256%
250%
204%
200%
156%
136%
150%
95%
92% 90%
100%
67%
56%
50%
41%
50%
0%
LTM
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

47. Using Capital Wisely
CAPEX as % of Sales
8%
7.2%
7%
5.8%
6%
5% 4.3% 4.3%
3.6%
3.5%
4%
3.2%
3%
2.1%
1.8% 1.8%
2%
1.5%
1%
0%
LTM
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

48. Effective Balance Sheet
Management
24.3%
Return on Average Net Assets
25%
19.7%
20%
15%
11.1%
10%
6.5%
7.8%
4.1%
5%
-2.1%
0%
LTM
1999 2000 2001 2002 2003 2004 2005
-5%

49. Funding Liabilities
Pensions
• Exceeded statutory contributions
for past 5 years
• Changed retirement plan structure
beginning in 1997

50. Funding Pension Obligations
Actual Funding
$160
$137
$140 $127
$113
$120
Millions USD
$100
$81 $81
$80
$62
$60
$40
$20
$20
$0
2005 LTM
1999 2000 2001 2002 2003 2004

51. Funding Liabilities
OPEB
• Capped future liabilities in 1991
• $80 million liability reduction expected
from Medicare Bill in 2006

52. Cash Priorities
• Operational
$250m debt reduction ‘06
– Reducing debt
– Investing in the business
– Funding our liabilities
• Returning value to shareholders
– Dividends
– Share repurchase $100m repurchase

53. Financial Platform
Earnings
Growth
Creating
Shareholder
Value
Focused Cash Reducing
Management Cyclicality

54. Creating Shareholder Value
400 er
ol d
ar eh 4
h
t al S 003/ 0
350
To r 2
ge o
a
ver eturn f
A
. 4%
300 R
Stock Price Index
77
250
200
150
100
50
Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05
CMI S&P 500 Peer Avg.

55. Creating Shareholder Value
Earnings
Growth
Creating
Shareholder
Value
Focused Cash Reducing
Management Cyclicality

56. A New Cummins

57. The Right Technology
Dr. John Wall
Vice President and
Chief Technical Officer
September 26, 2005

58. Cummins Technology Today
Innovation + Productivity

59. Cummins Technology Today
Innovation
– Emission technology best in world
– Invested in right technologies
– Stable architecture
– System integration
– Global presence
– Best products for each market

60. Cummins Technology Today
Productivity
– Six Sigma
– Analysis Led Design
– Global access
– R&E: 5% 3% sales

61. Our Products Must Meet
Customer Requirements
Low Initial Cost
Fuel Efficient
High Performance
Reliable and Durable
Low
Emissions
Electronic
Integration
Low Maintenance

62. Diversity – Vehicles
& Applications

63. Product Architecture for
The Right Technology
• Develop broad range of modular
technical building blocks
– Analytical models
– Product hardware and software
• Create integrated products tailored
to meet customer needs
– Low cost High feature content
– On-highway Off-highway
– North America India

64. Power Generation System Architecture
Builds on Cummins Synergies
Load Transfer
Switch
Emissions
After Treatment
Networking
Software
Modular Noise
Attenuation Enclosures
Alternator
Controls
System
Master Control
System
Integration

65. Product Line Architecture in Filtration
He
a vy
Du
ty
Sm /O
a ll ff
Ro
En
a
gi d
ne
/R
ec
Af Ve
te h
rm icl
ar e s
ke
n
ig t
es
r
Ai D
i d
pt n
te ig
n
O ck e s
te
Lo d D
Pa n
te ig
is
w tent es
Ta
rD
P a
ul s
od ion
M pt
O

66. The Right Technology …
for Emissions Control
• Integrating
critical
subsystems
– Combustion

67. The Right Technology …
for Emissions Control
• Integrating
critical
subsystems
– Combustion
– Air handling

68. The Right Technology …
for Emissions Control
• Integrating
critical
subsystems
– Combustion
– Air handling
– Fuel systems

69. The Right Technology …
for Emissions Control
• Integrating
critical
subsystems
– Combustion
– Air handling
– Fuel systems
– Electronic
controls
– Aftertreatment

70. The Right Technology …
for Emissions Control
• Integrating critical
subsystems
– Combustion
– Air handling
– Fuel systems
– Electronic controls
– Aftertreatment
… to deliver best customer
value at low emissions

71. Fleetguard
Emission Solutions
• System platforms
– Mobile Selective Catalytic Reduction
(SCR)
– Particulate Filtration
– Euro 4 and EPA 07
• Current product sales
– Over 1,500,000 MD/HD Diesel Oxidation
Catalysts
– Over 10,000 Particulate Filters
– No.1 in US retrofit market
– Plants in US, UK, South Africa

72. 2002 HD Emission Control
Foundation for the Future
Charge Air Cooler
EGR-Cooler
Variable Geometry
Turbocharger

73. 2007 HD Emission Control
Charge Air Cooler
EGR-Cooler
Exhaust
Filter
Variable Geometry
Turbocharger

74. EGR and CGI
Charge Air Cooler
Charge Air Cooler
EGR-Cooler
“CGI”
EGR-Cooler
Variable
Valve
Mechanism Exhaust
Filter
Variable Geometry
Turbocharger

75. 2007 HD Emission Control
Cummins EGR
•Simple
Charge Air Cooler
•Reliable
•Cummins subsystems
•Stable architecture
beyond 2010
EGR-Cooler
Exhaust
Filter
Variable Geometry
Turbocharger

76. Summer 2004

77. Winter 2004-5

78. The Right Technology… for
Industrial and Power Generation Engines
• Tier 3 : No EGR, No aftertreatment
– Lowest cost engine
– Lowest cost installation
• Stable Architecture
=
Tier 2 Tier 3

79. The Right Technology …
for Technical Productivity
• Six Sigma
• Analysis Led Design

80. Six Sigma Tools for Developing
The Right Technology
Process
Technology Product
Improvement
Development Design
Process
TDFSS DFSS
Six Sigma
Six Sigma Tools and Methodology

81. Design for
Design For Six Sigma Training 2000
1900
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1700
1600
International 1500
•• TDFSS-3
International
892 Trained 1400
CRTI-3
•• USUS 1300
China-2
1200
19 Brazil-3
China-1
1100
22
18 CIL-Nov
Brazil -1 UK-May
1000
20 23 Col-Nov
India -1 PGG-2
900
16
27 Col-Sep
Brazil-2
TDFSS-1
800
15 10 30 Col-Aug
Fltg -2 CRTI-1 India-2
700
26 26 11 Col-Jul
PGG-1 UK-2 CRTI-2
600
8 25 10 32 May-06
CCR UK-1 CWI-2 Nov-05
500
21 20 TDFSS-2 33 31
Fltg -1 CWI - 1 Mar-06
Sep-05
400
17 26 44 31 Feb-06
V-LDA L-10 Nov-04 Jul-05
300
13 25 29 30 25
L-3B L- 6 L- 9 Aug-04 CHS-05 UK-Feb
200
20 28 27 32 33
L-3 L-5 L-8 Apr-04 Mar-05 PGG-Jan
100
22 23 23 18 51 30 Jan-06
L-1 L-2 L-4 L-7 Supply Jan-05
0
First Supplier
Launch

82. Analysis-Led Design …
• Computer analysis and simulation
• Virtual product build
• Eliminate expensive prototypes
• More designs evaluated in shorter time
• Engineering Standard Work
Added 2500 hours analysis
Eliminated 5500 hours testing / prototypes
Better Designs Faster at Lower Cost

83. Analysis-Led Design …
Better Designs Faster at Lower Cost
• Combustion Analysis
12 months 5 months per design
10 1000 designs evaluated

84. Combustion Modeling in
Analysis Led Design
Rapid conversion of
precursors to soot
Rich premixed
reaction zone Soot growth region
Injector Cylinder wall
Entrainment
of air Entrainment of
hot products
Diffusion flame between
hot soot and air

85. Combustion Modeling in
Analysis Led Design
Detailed Soot
Rapid conversion of
Kinetics
HRR (MW/gm fuel) precursors to soot
Model
Rich premixed
150
1100+ equations
reaction zone Soot growth region
100
50
0
500100015002000
Temperature (K)
Injector Cylinder wall
Entrainment
of air Entrainment of
hot products
3-D Fluid dynamics Diffusion flame between
Flamelet
hot soot and air
code with improved
Model
spray model

86. Diesel Combustion Analysis
Liquid
Fuel
Fuel
Rich
PM
NOx

87. Analysis-Led Design …
Better Designs Faster at Lower Cost
• Combustion Analysis
12 months 5 months per design
10 1000 designs evaluated
• Filter
35 months 21 months design-to-production
5 50 designs evaluated
60% fewer prototypes
• Generator Set Structure
75 days 28 days per design
60% fewer prototypes

88. Analysis-Led Design …
Better Designs Faster at Lower Cost
System Level Results:
• 2007 Heavy Duty Engine Program
100% more analysis hours
20% lower total program cost
• 2007 Midrange Engine Programs
200% analysis hours
29% lower total program cost

89. Global Presence / Darlington
Daventry
Global Access Ramsgate
France
UK Stamford
Quimper
Huddersfield
USA
Rocky Mount
Jamestown
Japan
Cookeville
Stoughton Oyama
Fridley
Charleston China
Columbus Chongqing
India Xiangfan
Pune
Mexico Brazil Wuhan
Indore Beijing
San Luis Potosi Sao Paulo
Wuxi

90. Global Presence / Darlington
Daventry
Global Access Ramsgate
France
UK Stamford
Quimper
Huddersfield
USA
Rocky Mount
Jamestown
Japan
Cookeville
Stoughton Oyama
Fridley
Charleston China
Columbus Chongqing
India Xiangfan
Pune
Mexico Brazil Wuhan
Indore Beijing
San Luis Potosi Sao Paulo
Wuxi
Cummins Research & Technology India

91. Global Presence / Global Access
East Asia R&D
Beijing (CCI)
Xiangfan (DCEC)
Xi’an (Shaanxi)
Chongqing (CCEC)
Shanghai Fleetguard
Wuxi Holset & Newage
Wuhan (EAR&D)
Hong Kong
1100 km
270 km
660 km
700 km
750 km
940 km

92. The Right Technology for…
A New Cummins

93. A New Cummins
Joe Loughrey
President and Chief Operating Officer

94. Summary -
What you have heard so far
• Diversified by markets, products, customers
and regions
• Well positioned in emerging markets
• Generating higher returns and
setting new targets
• Focused on cash management
• Invested in the right technologies

95. What’s Different
Across the Company
• Converting sales into profits

96. Converting Increased Sales
into Higher Profits
250%
200%
200%
150%
100%
50% 34% 32%
30%
10%
8%
0%
2004-05 LTM
2002-03 2003-04
Revenue Growth EBIT Growth

97. Incremental EBIT%
25%
21%
20%
17%
15%
9%
10%
5%
0%
2004 - 2005 LTM
2002-03 2003-04

98. What’s Different
Across the Company
• Converting sales into profits
• Leaner cost structure

99. Rationalized
Manufacturing
Capacity
Leaner
Cost
Six Sigma Technical
Culture Productivity
Structure
Global
Sourcing

100. Increasing Gross Margins
Leveraging SAR
23%
GM %
21%
19%
17%
SAR %
15%
13%
Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05
Gross Margin % SAR %

101. What’s Different
Across the Company
• Converting sales into profits
• Leaner cost structure
• Strong global truck business

102. Significant Global Player In Trucks
• North America
• Europe
• India
• China
• Mexico
• Brazil
• Engines
• Filters
• Emission Solutions
• Turbochargers
• Fuel Systems

103. What’s Different
Across the Company
• Converting sales into profits
• Leaner cost structure
• Strong global truck business
• Partnerships working

104. Partnerships Working
• New common rail fuel system JV
• Tata Cummins grew by 2.5 times
• Tata Holset grew fourfold
•Manufacturing JVs are booming
•Successful joint development
•B3.3 and QSK78 are success stories
• CMD at 20% CAGR
• 25% of all IT work
KPIT • Electronic controls partner

105. What’s Different
Across the Company
• Converting sales into profits
• Leaner cost structure
• Strong global truck business
• Partnerships working
• Leveraging complementary businesses

106. Leveraging Complementary
Businesses
• Technology
• Cross selling
• Excellence in customer support
• Shared services
• Common operating system

107. What’s Different
Across the Company
• Converting sales into profits
• Leaner cost structure
• Strong global truck business
• Partnerships working
• Leveraging complementary businesses
• Major profitable growth opportunities

108. Major Profitable Growth
Opportunities
• Share growth
• New products
• After-market sales
• Emerging markets

109. What’s Different by Business
• Profitable NA HD truck business
• PowerGen turnaround successful
• Distribution business growing profitably
• Emission Solutions successfully launched

110. Break

111. Business Update
Joe Loughrey
President and Chief Operating Officer

112. Agenda
• Focused on profitable growth
– Engine
– Power Generation
– Components
– Distribution
• Well positioned in emerging markets
– China
– India
• Summary

113. Agenda
• Focused on profitable growth
– Engine
– Power Generation
– Components
– Distribution
• Well positioned in emerging markets
– China
– India
• Summary

114. Engine Business
Products Markets
Other Const/Ag
Parts
Mining/Marine
MR Parts
HD Truck
HHP
Power
Gen
MD Truck/Bus
LDA
HD
2004 Revenue

115. Engines – Historical Performance
Sales Segment EBIT
7000 500 $469
$6,070
6000
$5,424 400
$328
5000
300
4000
$3,435 $3,582
$3,121
200
3000
$M
$M
2000 100
$62
$37
1000
0
2001 2002 2003 2004 2005LTM
0
2001 2002 2003 2004 2005 LTM
-100
-$95

116. Strong Global Presence
2004 Global Production > 700,000 Engines
Europe China
North America
136,000
348,000 43,000
Japan
India
42,000
75,000
South America
59,000

117. Ready For 2007
Emissions Change
• Limited pre-buy
• Best product in ‘07
• End user field testing underway

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

119. Profitable Growth Opportunities
• Emissions driven share gain
• High horsepower
– Oil & Gas
– Marine
– Power Generation
• Parts sales
• Emerging markets
• Below 8500 lbs

120. Agenda
• Focused on profitable growth
– Engine
– Power Generation
– Components
– Distribution
• Well positioned in emerging markets
– China
– India
• Summary

121. Power Generation
Six Lines of Business
Lines of Business
2004 Sales: $1.8 Billion
Commercial
•
Alternators
Consumer
Commercial •
Rental
Alternators
•
Power Electronics
•
Energy Solutions
•
Consumer
Rental
•
Power
Energy Electronics
Solutions

122. Power Generation
Three Major Markets
• Standby Power 2004 Sales: $1.8 Billion
• Mobile Power
Distributed Standby
• Distributed
Generation
Mobile

123. Power Generation –
Historical Performance
Sales Segment EBIT
$1,933
2000 110
$1,842
$87
90 $82
1600
$1,422
70
$1,329
$60
$1,226
1200
50
$M
$M
30
800
10
400
2002 2003
2001 2004 2005 LTM
-10
-$19
0 -30 -$25
2001 2002 2003 2004 2005LTM
-50

124. Turnaround Demonstrating Results
Actions Results
• New Management
Team •Significant Profitability
Improvement
• Global Organization
• Increased Market
• Cost Reduction
Penetration
• Pricing Improvement
• Global Growth
• Collaborative Effort
with Engine Business

125. Well Positioned for
Profitable Growth
• Most markets still strengthening
• Expanding market share
– New products
– Improving distribution network
• Consumer growth
– Portables
• Growing project
business capability

126. Agenda
• Focused on profitable growth
– Engine
– Power Generation
– Components
– Distribution
• Well positioned in emerging markets
– China
– India
• Summary

127. Components Segment –
Four Businesses
• Four businesses within the segment
– Fleetguard
– Emission Solutions
– Holset
– Fuel Systems

128. Components – Historical Performance
Sales Segment EBIT
100
2000 $1,907 $94
$1,783
$86
$84
$80
80
1600
$1,292
$60
60
1200
$M
$951
$M
$889
800 40
20
400
0
0
2001 2002 2003 2004 2005 LTM
2001 2002 2003 2004 2005 LTM

129. Components Segment Strategy
• Improve profitability
• Grow share of business
• Introduce new products

130. Improve Profitability - Fleetguard
• Price increases in 2005
• Eliminate low margin products
• New low cost products in 2006
• Global sourcing
• Positioned for growth
in China and India

131. Grow Share - Holset
• Commercial diesel market leader
• OEMs moving to single source
• VG turbo is technology leader
• Supports OEMs globally
• Additional capacity
– Charleston, SC
– Wuxi, China
– Indore, India

132. Emission Solutions Business
Successfully Launched
• Started with retrofit business
• Leveraged existing relationships
• Low cost plant in South Africa

133. New Fuel System
• Common rail ‘XPI’
• Applied on 8 to 16 litre engines
• Introduced in Q3, 2006
• Partnership with Scania
– Jointly developed
– Manufacturing locations
• Columbus, IN
• Juarez, Mexico

134. Agenda
• Focused on profitable growth
– Engine
– Power Generation
– Components
– Distribution
• Well positioned in emerging markets
– China
– India
• Summary

135. Distribution Segment
• Strengthen the network
• Capture more profitability
• Outstanding customer support

136. Distribution Footprint
Company-owned
Joint Venture
Independent

137. Distribution Footprint
Company owned 75 Independent
• 17 Owned • 11 - US/Canada
• 9 JVs • 27 - Latin America
• 89 countries • 12 - Europe
• 220 Locations • 11 - Middle East
• 4000+ employees • 8 - Africa
• 6 - Asia

138. Distribution – Historical Performance
Sales Segment EBIT
100
1200 $94
$1,099
$973 $79
1000
80
800
60
$669
$M
$51
$574
$M
$562
600
40
$33
400 $27
20
200
0
0
2001 2002 2003 2004 2005
2001 2002 2003 2004 2005

139. Positioned for Profitable Growth
• Broadening product offering
• Expanding internationally
• Increasing equity ownership
• Excelling in customer support

140. Agenda
• Focused on profitable growth
– Engine
– Power Generation
– Components
– Distribution
• Well positioned in emerging markets
– China
– India
• Summary

141. China’s GDP Growth Outpaced the US
Cumulative Real GDP Growth 1980-2004
8
7
CAGR = 8.6%
GDP Multiple (1980 = 1)
6
5
4
3
CAGR = 2.6%
2
1
0
1980 1984 1988 1992 1996 2000 2004
China USA
Source: International Monetary Fund

142. All Four Business Segments
in China
• Entered China in 1975
• Largest foreign investor
• Strong market positions

143. Solid Foundation in China
Wuxi Newage
Xi’an Cummins Cummins Engine Alternators Co.,Ltd.
Engine Co., Ltd. Wuxi Holset Engineering
(Beijing) Co., Ltd.
Co., Ltd.
Dongfeng Cummins
Beijing
Engine Co., Ltd. Shanghai Fleetguard
Xi’an Filter Co., Ltd.
XiangfanWuxi
Shanghai
Chongqing
Wuhan
Chongqing Cummins
Engine Company Ltd.
EA Tech Center

144. CMI China Market Position in 2004
Engine shipment > 150,000 engines
Installed population > 850,000 engines
Largest Cummins bus OEM King Long
Largest Cummins NG bus fleet Beijing
Large Cummins truck OEM Dongfeng

145. 2004 Market Share
Commercial trucks 20%
Buses 17%
Excavators 33%
Mine trucks 85%
Track equipment 73%
Gensets 26%
Alternators 33%
Turbochargers 32%
Source: Company estimates

146. China Sales Have Been Strong
CMI Consolidated and Unconsolidated Sales
1,200
R
AG
1,000
C
35 %
800
US$ Millions
600
400
200
0
2000 2001 2002 2003 2004
Consolidated Net Sales Unconsolidated JV Net Sales

147. 2010 China Market Size $11-13 B
Over 600K Trucks By 2010
Bus &
Key Drivers
Coach
Power Truck
Diesel Rail
Gen
• Road construction
Mining
• Economic growth
Oil &
Gas
• Government policies
Marine
LCV
Construction

148. Well Positioned
for Future Growth
• East Asia R&D Center
• Medium duty electronic products
• Heavy duty entry
• Expanded component manufacturing

149. Agenda
• Focused on profitable growth
– Engine
– Power Generation
– Components
– Distribution
• Well positioned in emerging markets
– China
– India
• Summary

150. India’s GDP Growth also Outpaced the US
Cumulative Real GDP Growth 1980-2004
8.00
7.00
GDP Multiple (1980 = 1.00)
6.00
5.00
CAGR = 5.7%
4.00
3.00
2.00
1.00
CAGR = 2.6%
0.00
1980 1984 1988 1992 1996 2000 2004
India USA
Source: International Monetary Fund

151. All Four Business Segments
in India
• Started in 1962
• Strong market positions

152. Solid Foundation In India
Tata Holset Ltd
Dewas
Valvoline Cummins
New Delhi
Nelson Engine Systems (I) Ltd.
Daman
Tata Cumm ins
Jamshedpur
Cummins India Ltd.
Cummins Diesel Sales & Service Ltd.
KPIT Cumm ins Infosystems Ltd.
New age Electrical India Ltd.
Ahmednagar
International Purchasing Office
Fleetguard Filters Ltd.
Cummins Research & Technology India
Pune

153. CMI India Market Position in 2004
Engine shipment > 75,000 engines
Installed population > 350,000 engines
Large Cummins NG bus fleet Delhi
Large Cummins truck OEM Tata

154. 2004 Market Share
Trucks 40%
Mining 40%
Compressors 55%
Pumps 30%
Rail 50%
Commercial Marine 25%
Construction 18%
Gensets 55%
Alternators 65%
Turbochargers 45%
Filtration 22%
Source: Company estimates

155. India Sales Have Been Strong
CMI Consolidated and Unconsolidated Sales
700
R
G
% CA
600
14
500
US$ Millions
400
300
200
100
0
2000 2001 2002 2003 2004
Consolidated Net Sales Unconsolidated JV Net Sales

156. Leveraging Strong Base
Low Cost Manufacturing
• Global Source
– V28
– K38 and K50 Power Generation Engines
– Components supply base
Services & Solutions
• Valvoline Cummins 30% CAGR
• KPIT Cummins 60% CAGR
• CRTI - R&D worldwide

157. Well Positioned for Future Growth
• Increased exports
• Local electronic products
• Major capacity increases
– Turbochargers 46%
– KV Engines 70%
– Valvoline 50%

158. China / India - Summary
• Long operating experience
• All businesses strong
• Healthy partnerships
• Leveraging assets
• Synergies growing
• Many growth opportunities

159. Agenda
• Focused on profitable growth
– Engine
– Power Generation
– Components
– Distribution
• Well positioned in emerging markets
– China
– India
• Summary

160. This is the New Cummins
Profitable
Restructured
Power-Gen
Engine Business
Business
Growing
Strong Footprint in Components
Emerging Markets and Distribution

161. Focused On Execution
24.3%
Return on Average Net Assets
25%
19.7%
20%
15%
11.1%
10%
6.5%
7.8%
4.1%
5%
-2.1%
0%
2005 LTM
1999 2000 2001 2002 2003 2004
-5%

162. A New Cummins

163. Non-GAAP Reconciliation – EBIT
$ Millions Year ended LTM
12/31/99 12/31/04 6/30/05
Earnings before interest, income taxes,
minority interest and restructuring charges $ 316 $ 543 $ 715
Restructuring, asset impairment and other (56) - -
Earnings before interest, income taxes and $ 260 $ 543 $ 715
minority interest
Interest Expense (75) (111) (113)
Provision for income taxes (47) (56) (100)
Minority Interests in earnings of unconsolidated (6) (26) (29)
subsidiaries
Net Earnings $ 132 $ 350 $ 473
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.

164. Additional Disclosures
As previously announced, effective May 2, 2005, CMI
made certain leadership changes within its management
team and subsequently on July 21, 2005 in Form 8-K,
restated operating segment data for the periods of 2003
to the present.
Operating segment data used in these presentations for
the periods of 1999 through 2002 has not been adjusted
for the changes in segment reporting.
The segment EBIT used in these presentations excludes
restructuring, asset impairment and other charges,
minority interest and preferred dividends.