CONEXPO%20Investor%20Presentation%202008

Ric KleineVice President Industrial Business

Meeting Tier 4 Emissions

2

Engine Segment

$7.5

$13.3

2006 2011

Where We’re HeadedFuture Performance

$1.5

$3.7

2006 2011

13% CAGR

13% CAGR

20% CAGR

20% CAGR

Joint Venture Sales Unconsolidated ($B)Consolidated Sales ($B)

How We’re Getting There

Emission regulations

Emerging markets

Strategic OEM partnerships

New engine platforms

Steady aftermarket revenue growth

Construction& Ag 18%

Market Application Geographic

Mining/RailGovt/O&G

Marine 15%

Light-duty Automotive & RV 16%

US/Canada55%

Heavy-dutytruck 24%

Medium-dutyTruck & bus 16%

StationaryPower 11%

EMEA 14%

Latin America &

Mexico 12%

East Asia 5%

SE/NE Asia 5%

India 7% South Pacific 2%

Who We Are

2007 Sales: $8.2B

Where We’ve BeenHistorical Performance

$3.6

$5.4

$6.7

$7.5

$8.2

2003 2004 2005 2006 2007

$0.8

$1.2 $1.3

$1.5

$1.9

2003 2004 2005 2006 2007

Joint Venture Sales Unconsolidated ($B)Consolidated Sales ($B)

23% CAGR

23% CAGR

25% CAGR

25% CAGR

3

Stronger Industrial Engine Sales Mix

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2004 2005 2006 2007

$ M

US ROW

$1,380

$1,791

$2,063

$2,676

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2004 2005 2006 2007

$ M

CON/AG HHP markets

$1,380

$1,791

$2,063

$2,676

By GeographyBy Industrial Application

Engine Segment

4

Tougher Global Emission Standards

Mexico2008

Mexico2008

Australia2008

Australia2008

Brazil2009

Brazil2009

Europe2009

Europe2009US /

Canada2010

US / Canada

2010

India2010India2010

China2010

China2010

Off-highway2011-14

Off-highway2011-14

5

0 0.54PM g/kW-hr

NO

x g/

kW-h

r

0.2

9.2

6.4

4.0

Tier 1 / Stage 1 (1996)

Tier 2 / Stage II (2001)

Tier 3 / Stage IIIA (2005)

Tier 4 Interim / Stage IIIB (2011)

Tier 4 Final / Stage IV (2014)

2.0

0.4

0.02

Tier 4 Regulations Approaching Near Zero Emissions

90% lower

90% lower

174-751 hp Power Category

45% lower

6

0 0.5 2 3 4 50.00

0.04

0.08

0.12

0..16

Engine Engine -- out NOx [g/kWout NOx [g/kW--hr]hr]

Engi

ne

Engi

ne --

out

Part

icul

ate

[g/k

Wou

t Pa

rtic

ulat

e [g

/kW

-- hr]hr]

1 2.51.5 4.53.5 5.5 6

0.20Tier 2

Tier 3

Tier 4 InterimTier 4 Final

In-Cylinder Combustion Optimization

Cooled EGR, VG Turbo & Combustion Optimization

ParticulateFilter

Incremental Architecture

A Proven Technology Route

174-751 hp Technology Route

7

Direct Flow Air Intake

Crankcase Filtration

Particulate Filter

System Integration Advantage

HPCR

VG Turbo

Integrated control system from ECM

All core technologies for Tier 4 are available from within Cummins own resources

Better integrated & performance optimized

8

Equipment factors Many different types Wide variations in duty cycles & load factorsSpace restrictions

Operational factorsVibration & shock loadsDust & dirtAngularity No ram air cooling

+

Integration with OEM Chassis

9

Designed for the Customer

High UptimeLow Operating CostsLow MaintenanceInitial Machine Cost

Packaging / CoolingHigher PerformanceSafe OperationClean Engine Sociability

Lowest Cost of Ownership

10

Thank You for Your Interest in

For Additional Information Contact:Dean Cantrell, Director – Investor Relations

(812) 377-3121 [email protected]

www.Cummins.com

Appendix

12

Cummins Inc.

Macro growth trends play to Cummins’strengthsDisciplined investment for growthDemonstrated technology leadership

ComponentsSegment 19%

EngineSegment 52%

Power GenSegment 19%

DistributionSegment 10%

FYE 2007 DataSales: $13.0 billionEBIT: $1,227 millionEBIT Margin: 9.4%

2007 Revenue by Segment

13

Cummins Inc.

Mexico/Latin America

9%

Africa/Middle East5%Canada

3%

United States46%

Asia/Australia19%

Europe/CIS18%

2007 Revenue by Marketing TerritoryInternational revenue is 54% of consolidated revenue in 2007Most international areas growing at double digit rateDemonstrates our geographic diversity

14

Cummins – Historical Performance

$181

$543

$907

$1,179$1,227

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2003 2004 2005 2006 2007

$ M

illon

s

$6,296

$8,438

$9,918

$11,362

$13,048

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2003 2004 2005 2006 2007

$ M

illon

s

EBITSales

15

Engine Segment

Emission regulations create opportunitiesEmerging marketsStrategic OEM partnershipsNew engine platformsAftermarket revenue creates stable earnings

HighHorsepower

(19-91L) 17%

Midrange(3-9L) 40%

Heavy-Duty(10-15L) 22%

Parts andService 21%

2007 Revenue by Product

FYE 2007 DataSales: $8.2 billionEBIT: $589 millionEBIT Margin: 7.2%

16

Engine Segment

Gaining market share in on-highway marketsIndustrial markets supported by non-residential construction and commodity marketsExpanding capacity to meet growing demand

Light-duty Automotive & RV 16%

Heavy-dutytruck 24%

Medium-dutyTruck & bus 16%

StationaryPower 11%

2007 Revenue by Market Application

Construction& Ag 18%

Mining/RailGovt/O&G

Marine 15%

FYE 2007 DataSales: $8.2 billionEBIT: $589 millionEBIT Margin: 7.2%

17

Engines – Historical Performance

$62

$328

$582

$733

$589

$0

$100

$200

$300

$400

$500

$600

$700

$800

2003 2004 2005 2006 2007

$ M

$3,582

$5,424

$6,657

$7,511$8,182

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

2003 2004 2005 2006 2007

$ M

Segment EBITSales

18

Power Generation Segment

Commercial58%

Alternators20%

Rental2%

Consumer11%

PowerElectronics

4%Energy

Solutions5%

2007 Revenue by ProductCapitalize on industry growthLeverage existing market leadershipEstablish leadership in all major marketsExpand into new and adjacent markets

FYE 2007 Segment DataSales: $3.1 billionEBIT: $334 millionEBIT Margin: 10.9%

19

Power Generation – Historical Performance

($19)

$60

$145

$220

$334

($50)

$0

$50

$100

$150

$200

$250

$300

$350

$400

2003 2004 2005 2006 2007

$ M

$1,329

$1,842$1,999

$2,416

$3,060

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2003 2004 2005 2006 2007

$ M

Segment EBITSales

20

Components Segment

New products launchedIndustry leading technologyCapacity expansionGrow with CMI and non-CMI engine volumesLeverage global distribution to grow aftermarket

SpecialtyFiltration

6%Air IntakeSystems

9% Turbocharger29%

FuelSystems

14%

EngineFiltration

17%

AcousticExhaust

10%



CatalyticExhaust

15%

21

Components – Historical Performance

$86 $84 $89

$107

$153

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

2003 2004 2005 2006 2007

$ M

$1,292

$1,783$2,000

$2,281

$2,932

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2003 2004 2005 2006 2007

$ M

Segment EBITSales

22

Distribution Segment

Continue acquisitions, consolidations and integrationsLeverage Cummins equipment growthWorld-class customer supportBuild capabilities – invest in growing regions

Parts,Filters, &

Consumables37%

Service17%

Engines21%

PowerGeneration

25%



23

Distribution – Historical Performance

$51

$79

$107

$144

$187

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2003 2004 2005 2006 2007

$ M

$669

$973

$1,191

$1,385

$1,540

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2003 2004 2005 2006 2007

$ M

Segment EBITSales

24

Joint Venture Sales Unconsolidated

$529

$1,474

$1,285$1,232

$1,940

$0

$500

$1,000

$1,500

$2,000

$2,500

2003 2004 2005 2006 2007

$ M

illio

ns $1,316

$1,029$1,204

$1,715

$2,497

$3,435

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2003 2004 2005 2006 2007

$ M

illio

ns

Engines Distribution

In 2003, sales from certain JVs (colored red above) were treatedas unconsolidated; adoption of FIN 46R in 2004 required the company to consolidate the results of certain JVs.

25

$162

$72

$105

$130

$166

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

2003 2004 2005 2006 2007

$ M

illio

ns

$72

$94

$110$123

$175

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2003 2004 2005 2006 2007

$ M

illio

ns

Joint Venture Sales Unconsolidated

Power Generation Components

Non-GAAP Reconciliations

27

Non-GAAP Reconciliation – EBIT

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.

$ 1,169

$ 58

$ 1,227

2007

$ 91

$ 90

$ 181

2003

$ 1,083$ 798$ 432Earnings before income taxes and minority interests

$ 96$ 109$ 111Less: Interest Expense

$ 1,179$ 907$ 543EBIT

200620052004Millions

Years Ended

CONEXPO%20Investor%20Presentation%202008

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