1. Fourth Quarter 2007
Earnings
Teleconference
February 1, 2008

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. Key Messages
4th straight year of record sales and profits
Operational improvement beginning in
Components
Acceleration of earnings growth in 2008
Investing in longer-term global growth story
4

5. Targets
Sales growth: 12%
Cummins Inc. EBIT margin: 10%
ROANA: 25%
Selected Financial Data ROE: 20%
Change Change
$ Millions Q407 Q406 Amount Percent
Sales 3,516 3,033 483 16%
EBIT 324 303 21 7%
% of Sales 9.2% 10.0%
ROANA (LTM) 29% 31%
ROE (LTM) 21% 25%
Global customer demand leading to growth in nearly every market
Gaining market share due to our technology leadership
Investing in profitable growth opportunities in each operating
segment, and in domestic and international markets
5

6. Cummins Inc.
Selected Income Statement Data
Q407 Q406
Net Earnings ($M) 198 189
Earnings Per Share $1.00 $0.94
Product Coverage (% of Net Sales) 3.4% 2.3%
Gross Margin (% of Net Sales) 19.4% 21.0%
SAR (% of Net Sales) 12.9% 12.5%
Earnings before interest and taxes (EBIT) at 9.2% of sales
As expected, lower gross margins due to higher costs associated with the
launch of the EPA ’07 products, partially offset by higher pricing for new
products
Higher warranty accrual rate during introductory year of EPA ’07 products
Less overhead recovery from significantly lower heavy-duty and pick-up
truck volumes
6

7. Targets
Power Generation Sales growth: 15%
EBIT margin: 10%
Segment
Selected Financial Data
Change Change
$ Millions Q407 Q406 Amount Percent
Sales 840 658 182 28%
EBIT 86 62 24 39%
% of Sales 10.2% 9.4%
Strong sales of commercial generator sets and alternator equipment
across the globe
Consumer growth as portables, commercial mobile, recreational marine,
and auxiliary power units offset softness in recreational vehicles
Strong price realization for commercial generator sets and alternators
7

8. Targets
Distribution Segment Sales growth: 15%
EBIT margin: 11%
Selected Financial Data
Change Change
$ Millions Q407 Q406 Amount Percent
Sales 468 386 82 21%
EBIT 56 39 17 44%
% of Sales 12.0% 10.1%
Organic growth of 25% excluding the reporting change of a North American
distributor, currency and acquisitions
Global demand for our products remain strong, particularly in Europe, the
Middle East, Singapore, and Africa
Joint venture earnings contributed $25 million to segment earnings on
strength of sales of power generation equipment in North America plus
contribution from new joint ventures
8

9. Targets
Engine Segment Sales growth: 13%
EBIT margin: 8.5%
Selected Financial Data
Change Change
$ Millions Q407 Q406 Amount Percent
Sales 2,155 1,952 203 10%
EBIT 120 181 (61) (34%)
% of Sales 5.6% 9.3%
Growth in both Industrial and Medium-duty Truck & Bus revenue
Lower gross margins due to higher costs associated with the launch of the
EPA ’07 products, partially offset by higher pricing for new products
Higher warranty accrual rate during introductory year of EPA ’07 products
Investing in new growth opportunities and additional capacity
Less overhead recovery from significantly lower heavy-duty and pick-up
truck volumes
9

10. Engine Segment
Sales by Market – On-highway
Change Change
$ Millions Q407 Q406 Amount Percent
Heavy-duty truck 531 640 (109) (17%)
Medium-duty truck and bus 398 256 142 55%
Light-duty automotive/RV 247 322 (75) (23%)
Total on-highway 1,176 1,218 (42) (3%)
North America Heavy-duty Truck engine shipments down 38% - much better than
market due to significant market share gains
Medium-duty Truck shipments up 21% with strength in Brazil and Europe
together with market share gains in North America
Bus shipments up 80% on strength in Europe, China, and North America
North America Light-duty Automotive shipments down 47% due to US economic
uncertainty
10

11. Engine Segment
Sales by Market – Industrial
Change Change
$ Millions Q407 Q406 Amount Percent
Total Industrial 733 559 174 31%
Total shipments up 20% with growth in nearly all applications, but primarily
in international markets
Global construction equipment shipments up 17% driven by demand in East
Asia, Europe, and Korea
Worldwide shipments for mining up 16% with growth in China, Russia, Latin
America, and Australia
Commercial marine shipments up 18% with successful launch of our Tier 2
product
Increasing high-horsepower capacity another 30% by mid 2008
11

12. Targets
Components Segment Sales growth: 20%
EBIT margin: 9%
Selected Financial Data
Change Change
$ Millions Q407 Q406 Amount Percent
Sales 777 599 178 30%
EBIT 47 23 24 104%
% of Sales 6.0% 3.8%
Growth in all businesses on sales of new products to meet emission standards,
particularly Emission Solutions (up $81M or 167%) and Turbo Technologies (up
$72M or 44%)
Filtration (up $19M or 7%) saw strong economic-driven revenue growth in
Eastern Europe, Russia, and the Middle East
New product introduction costs, metal market cost increases, and aggressive
production ramp up provided challenges for each of the businesses
12

13. Joint Venture Income
$ Millions Q407 Q406
Engine 26 16
On-highway 18 10
Off-highway 6 4
Rec. Marine 2 2
Power Generation 5 2
Distribution 25 16
Components 3 1
Total JV Income 59 35
Engine joint venture income up primarily due to continued strengthening in
the Chinese on-highway truck market
Distribution increased 56% on strength of power generation equipment sales
in North America
13

14. Cash Flow
Q407 Q406
Operating Cash Flow ($M) 287 227
Capital Expenditures ($M) 171 97
Pension Funding ($M) 106 112
Share Repurchase ($M) 125 45
Working Capital (% of Net Sales) 17.3% 16.9%
Cash flow strategy to maintain a strong balance sheet, including funding our
liabilities; investing in profitable growth; and returning value to our shareholders
Working capital net cash inflow of $11 million in Q407 compared to net cash
outflow of $10 million in Q406
Repurchased 2.1 million shares (split-adjusted) during the quarter
14

15. Guidance for 2008
Consolidated Results
Item Full Year Guidance
Revenue Up 12%
Earnings from Joint Ventures Up 5 – 10%
EBIT Margin (%) 10%
Effective Tax Rate 35%
Capital Expenditures ($M) $550 to $600
Global Pension Funding ($M) $95 to $105
15

16. Forecasting 12% Growth in Revenue
14,900
14,400
Revenue ($ M)
13,900
13,400
12,900
12,400
2007 Volume Distributor Price New Products 2008
Acquisition
and
Consolidation
16

17. 10% EBIT Margin Yields Nearly 20%
Profit Growth
13%
12%
EBIT (% of Net Sales)
11%
10%
9%
8%
2007 Overhead Price Cost Investment 2008
Leverage Reduction in Growth
17

18. Guidance for 2008
Segment Results
Power
Item Engine Components Distribution
Generation
Revenue Up 5-10% Up 10-15% Up 17-22% Up 20-25%
Slightly Slightly Slightly
Between
EBIT Relative
Below 8.5% Above 10% Below 11%
to Target 6-7%
target target target
18

19. 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
19

20. Appendix

21. Cummins Inc.
2007 Revenue by Segment
Components
Macro growth trends Segment 19%
play to Cummins’
Engine
strengths Segment 52%
Disciplined Distribution
Segment 10%
investment for
growth
Demonstrated
technology
leadership
Power Gen
Segment 19%
FYE 2007 Data
Sales: $13.0 billion
EBIT: $1,227 million
EBIT Margin: 9.4%
21

22. Cummins Inc.
2007 Revenue by Marketing Territory
Africa/Middle East
International revenue Canada 5%
3%
is 54% of consolidated
revenue in 2007 Mexico/Latin
America
Most international 9%
areas growing at
double digit rate
United States
Asia/Australia
Demonstrates our 46%
19%
geographic diversity
Europe/CIS
18%
22

23. 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
23

24. Engine Segment
2007 Revenue by Product
Emission regulations
create opportunities Midrange
Parts and
(3-9L) 40%
Emerging markets Service 21%
Strategic OEM
partnerships
New engine platforms
Aftermarket revenue
creates stable earnings
High
Horsepower
(19-91L) 17%
FYE 2007 Data
Heavy-Duty
Sales: $8.2 billion (10-15L) 22%
EBIT: $589 million
EBIT Margin: 7.2%
24

25. Engine Segment
2007 Revenue by Market Application
Gaining market share in Stationary
Power 11%
on-highway markets Heavy-duty
truck 24%
Industrial markets Mining/Rail
Govt/O&G
supported by non- Marine 15%
residential construction
and commodity markets
Expanding capacity to
meet growing demand
Construction Medium-duty
& Ag 18% Truck & bus 16%
FYE 2007 Data
Light-duty
Sales: $8.2 billion Automotive
EBIT: $589 million & RV 16%
EBIT Margin: 7.2%
25

26. 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
26

27. Power Generation Segment
2007 Revenue by Product
Capitalize on industry Alternators
Commercial
20%
growth 58%
Leverage existing
Rental
market leadership 2%
Establish leadership in
all major markets
Expand into new and Consumer
11%
adjacent markets
Power
Electronics
4%
FYE 2007 Segment Data Energy
Sales: $3.1 billion Solutions
5%
EBIT: $334 million
EBIT Margin: 10.9%
27

28. 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
28

29. Components Segment
2007 Revenue by Product
Specialty
New products launched Filtration
Air Intake
6%
Industry leading Systems
9%
technology Turbocharger
29%
Capacity expansion Acoustic
Grow with CMI and non- Exhaust
10%
CMI engine volumes
Leverage global
distribution to grow
aftermarket Engine Fuel
Filtration Systems
17% 14%
FYE 2007 Segment Data Catalytic
Sales: $2.9 billion Exhaust
EBIT: $153 million 15%
EBIT Margin: 5.2%
29

30. 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
30

31. Distribution Segment
2007 Revenue by Product
Service
Continue acquisitions, 17%
consolidations and Engines
21%
integrations
Leverage Cummins
equipment growth
World-class
customer support
Build capabilities – invest
in growing regions Power
Parts,
Generation
Filters, &
FYE 2007 Segment Data 25%
Consumables
Sales: $1.5 billion 37%
EBIT: $187 million
EBIT Margin: 12.1%
31

32. 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
32

33. 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
company to consolidate the results of certain JVs. 33

34. 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
34

35. Non-GAAP
Reconciliations

36. Non-GAAP Reconciliation – EBIT
Three Months Ended
Millions December 31, December 31, September 30,
2007 2006 2007
Segment EBIT $ 324 $ 303 $ 306
Less: Interest Expense $ 14 $ 20 $ 14
Earnings before income taxes and minority $ 310 $ 283 $ 292
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.
36

37. Non-GAAP Reconciliation – EBIT
Years Ended
Millions December 31, December 31,
2007 2006
Segment EBIT $ 1,227 $ 1,179
Less: Interest Expense $ 58 $ 96
Earnings before income taxes and minority $ 1,169 $ 1,083
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.
37

38. Non-GAAP Reconciliation – EBITDA
Three Months Ended
Millions December 31, December 31, September 30,
2007 2006 2007
Segment EBIT $ 324 $ 303 $ 306
Add back: Depreciation & Amortization $ 75 $ 74 $ 73
EBITDA $ 399 $ 377 $ 379
We define EBITDA as earnings before interest expense, provision for income taxes, minority interests in earnings of
consolidated subsidiaries and depreciation and amortization expense. 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, income taxes or depreciation methods. 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.
38

39. Non-GAAP Reconciliation – EBITDA
Years Ended
Millions December 31, December 31,
2007 2006
Segment EBIT $ 1,227 $ 1,179
Add back: Depreciation & Amortization $ 290 $ 296
EBITDA $ 1,517 $ 1,475
We define EBITDA as earnings before interest expense, provision for income taxes, minority interests in earnings of
consolidated subsidiaries and depreciation and amortization expense. 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, income taxes or depreciation methods. 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.
39

40. Non-GAAP Reconciliation – Cash From
Operations Excluding Pension Contributions
Years Ended
Millions December 31, December 31,
2007 2006
Cash provided by operations $ 810 $ 840
Add back: pension contributions $ 250 $ 266
Cash provided by operations
$ 1,060 $ 1,106
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.
40

41. Non-GAAP Reconciliation – Net
Assets
December 31, December 31,
Millions
2007 2006
Net assets for operating segments $ 4,434 $ 4,056
Liabilities deducted in computing net assets 3,759 3,510
Minimum pension liability excluded from net assets - (837)
Pension and other postretirement liabilities (570) -
Deferred tax assets not allocated to segments 546 710
Debt-related costs not allocated to segments 26 26
Total assets $ 8,195 $ 7,465
A reconciliation of net assets for operating segments to total assets in our Consolidated Financial Statements is shown in the
table above.
41

42. Non-GAAP Reconciliation – Equity Used for
Return on Equity Calculation
December 31, December 31,
Millions
2007 2006
Equity used for return on equity calculation $ 3,409 $ 2,802
less Defined other postretirement benefits - 3
less Defined benefit pension plans 378 508
less Minimum pension liability adjustment - -
Total shareholder’s equity $ 3,787 $ 3,313
A reconciliation of equity used for return on equity calculation to total shareholder’s equity in our Consolidated Financial
Statements is shown in the table above.
42