The document is a presentation by Tim Solso, Chairman and CEO of Cummins, at Baird's 2005 Industrial Conference. It summarizes Cummins' financial performance and commitments, including exceeding targets for revenue growth, EBIT margin, capital expenditures, debt ratios, and returns. It outlines strategies to increase profitability, reduce debt, invest in growth areas, and create shareholder value. Cummins is well positioned for future growth in emerging markets like China and India. The presentation also discusses strategies for heavy duty engines, components and distribution businesses, and preparations for 2007 emissions regulations.

1. A New Cummins
Tim Solso
Chairman and Chief Executive Officer
Baird’s 2005 Industrial Conference
November 8, 2005

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. Delivering on Commitments
Target 2005LTM
Revenue Growth 8% -10% 12.8%
EBIT Margin 7% - 10% 8.5%
Cap Ex < D&A 67% of D&A
Debt to Capital Ratio 30% - 40% 43%
Investment Grade 2005 S&P BBB-
Moody Ba1
ROE 18% 24%
ROANA 22% 26%

4. Delivering on Commitments
er
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400
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t al S 003/ 0
To r 2
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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.

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

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

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

10. 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

11. 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%

12. Growing Stable Diversified Earnings
1999* LTM
2005
$316M $810M
Stable & Diversified EBIT
Cyclical EBIT
* Excludes restructuring charges

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

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

15. Growing Total China Sales to $3B
by 2010
• Well Positioned
1,200
GR for Future Growth
CA
1,000
%
35
– East Asia R&D Center
800
US$ Millions
– Medium duty
600
electronic products
400
– Heavy duty entry
200
– Expanded component
manufacturing
0
2000 2001 2002 2003 2004
Consolidated Unconsolidated
Net Sales JV Net Sales

16. Growing Total India Sales to $2B
by 2010
700
• Well Positioned
GR
for Future Growth
CA
600
%
14
– Increased exports
500
US$ Millions
– Local electronic
400
products
300
– Major capacity
increases
200
• Turbochargers 46%
100
• KV Engines 70%
0
• Valvoline 50%
2000 2001 2002 2003 2004
Consolidated Unconsolidated
Net Sales JV Net Sales

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

18. 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

19. Generating More Cash
from Operations
Operating Cash Flow
$700
$631
$614
$600
$472
$500
Millions USD
$400
$307
$300
$193
$200 $158
$152
$100
$0
LTM
1999 2000 2001 2002 2003 2004 2005

20. Reducing Debt Levels
Total Debt- 2005
$1,800 80%
$1,626
$1,600 70%
$1,429
$1,352
$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 September ’05

21. Using Capital Wisely
Capital Expenditures
$450 300%
$405
$400
250%
$304
$350
Capex in millions USD
Capex as % of D&A
$271
$300 200%
$223
$228
$250 $215 $206 150%
$194
$200
$151
$150 100%
$90 $111
$100
50%
$50
$0 0%
LTM
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

22. Returning value to shareholders
• Dividends
• Share repurchase

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

24. Ready For 2007
Emissions Change
• 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

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

26. A New Cummins

27. Appendix

28. Non-GAAP Reconciliation – EBIT
$ Millions Year ended LTM
12/31/99 12/31/04 9/30/05
Earnings before interest, income taxes,
minority interest and restructuring charges $ 316 $ 543 $ 810
Restructuring, asset impairment and other (56) - -
Earnings before interest, income taxes and $ 260 $ 543 $ 810
minority interest
Interest Expense (75) (111) (113)
Provision for income taxes (47) (56) (165)
Minority Interests in earnings of unconsolidated (6) (26) (30)
subsidiaries
Net Earnings $ 132 $ 350 $ 502
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.

29. Non-GAAP Reconciliation – Net
Assets
$ Millions September September
25, 2005 26, 2004
Net assets for operating segments $ 3,312 $ 2,876
Liabilities deducted in computing net assets 3,421 3,040
(826) (698)
Minimum pension liability excluded from net assets
Deferred tax assets not allocated to segments 928 903
Debt-related costs not allocated to segments 27 28
Total assets $ 6,862 $ 6,149

30. Non-GAAP Reconciliation – ROANA
$ Millions LTM
9/30/05
Earnings before interest, income taxes and minority interest $ 810
Net Assets for operating segments at beginning of period 2,876
(September 26, 2004)
Net Assets for operating segments at end of period 3,312
(September 25, 2005)
Average Net Assets for operating segments for period 3,094
ROANA 26%

31. 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.