Cummins Investor Conference Jamestown Engine Plant

Welcome Cummins Investor Conference Jamestown Engine Plant September 2007 Agenda Welcome 9:15 a.m. to 10:40 a.m. Presentations 10:40 a.m. to 10:55 a.m. Break 10:55 a.m. to noon Presentations Noon to 1 p.m. Q and A 1 p.m. to 3 p.m. Lunch, plant tours, exhibits 2 Tim Solso

Presenters Tim Solso, Chairman and CEO Joe Loughrey, President and COO John Wall, Chief Technical Officer Jim Kelly, President, Engine Business Tom Linebarger, President, Power Generation Rich Freeland, President, Distribution Rick Mills, President, Components Steve Chapman, Group Vice President, Emerging Markets Anant Talaulicar, Vice President, Cummins India Jean Blackwell, Chief Financial Officer

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 forwardlooking 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 Earnings Growth Strong balance sheet and cash flows Technical leadership Global presence 4 Tim Solso

Cummins Inc. Joe Loughrey Chief Operating Officer Agenda Macro trends moving our way Well positioned to take advantage Sustained profitable growth 2 Joe Loughrey

Tougher Emission Standards Offhighway 2011-14 US / Canada 2010 Europe 2009 China 2010 Mexico 2008 Brazil 2009 India 2010 Australia 2008 3 Demand for Energy and Fuel Efficiency Higher fuel costs and electricity consumption Energy independence and fuel economy Dependence on reliable electric supply 4 Joe Loughrey

Emerging Markets Turkey GDP 5% CIS GDP 6-7% China GDP 9-11% Nigeria GDP 7% India GDP 8% Vietnam GDP 7-8% 5 Real Growth Opportunity Global diesel engine market growth 6-7% CAGR Gasoline engine markets shifting to diesel Clean diesel engine markets growing faster Global Use of Clean Diesel 2003 2014 6 Joe Loughrey

Well Positioned for Growth Deep technology capability Strong global network Major strategic partnerships New products Capacity expansion Global market leadership Continuous improvement and change 7 Deep Technology Capability Investing in the right technology Great partners World class methods and tools Reflected in results 8 Joe Loughrey

Strong Global Network Technical Centers 9 Strong Global Network Manufacturing 10 Joe Loughrey

Strong Global Network Distribution Company-owned Joint Venture Independent 11 Major Strategic Partnerships MerCruiser Daimler 12 Joe Loughrey

New Products Tier 2 HHP XPI fuel system Light-duty engines Comfort Guard Filtration 13 Capacity Expansion Engines Gensets Alternators Turbochargers Fuel systems Catalytic exhaust systems 14 Joe Loughrey

Global Market Leadership Turbos Alternators SCR Systems MD Truck Mining Excavators Bus HD Truck HD pick-up Bus, RV Marine Turbos Catalytic Exhaust Filtration Power Gen MD Truck Power Gen MD Truck Power Gen Industrial Filtration Turbos Power Gen Filtration 15 Continuous Improvement and Change Cummins Operating System Global sourcing Expansion of Six Sigma Partnering to ensure customer success Global recruiting and development 16 Joe Loughrey

Profitable Growth Sales EBIT $25 $20 12% CAGR $20 $2.5 $2.0 12% CAGR $2.1 $ Billions $15 $10 $11 $ Billions $1.5 $1.0 $1.2 $5 $0.5 $0 2006 2011 $0.0 2006 2011 17 Joe Loughrey

Technology Leadership Dr. John Wall Chief Technical Officer Darlington Daventry Ramsgate UK Stamford Huddersfield France Quimper USA Rocky Mount Jamestown Cookeville Stoughton Fridley Charleston Seymour Columbus Mexico San Luis Potosi Brazil Sao Paulo China Chongqing Xiangfan India Wuhan Pune Beijing Indore Wuxi Jamshedpur Japan Oyama Cummins Major Engineering Centers including Joint Ventures 2 John Wall

Global Engineering Workforce India 506 UK - 646 China 207 Brazil 37 Mexico 26 4000 Engineers worldwide 2500 US Growth in India and China Mechanical Eng Materials Eng Electrical Eng Chemical Eng Chemistry US 2,474 1200 Engineering Technicians 3 Technical Testing Laboratories USA CPG-Fridley 31 Gen Test Cells 2 Cold Cell 24 End Gen Test Cells USA Plant Engr 2 CVS Cells 21Test Cells 27 Test Stands UK 2 CVS Cells 19 Test Cells 1 Cold Cell 6 Gen Set Cells CES/CF-Stoughton 9 Test Cells 22 Test Stands Columbus- 2 Chassis Rolls 17 CVS Cells 81 Perf/End Test Cells 2 Altitude 2 Cold Cells 3 Noise Cells 3 Single Cylinder Cells 4 Gen Set Cells 237 Test Cells 21 Emission cells 63 Test stands 2 vehicle chassis cells Brazil 6 Test Cells Europe Quimper 10 Test Stands India 11 Test Cells China 1 Gen Test Cell 11 Test Cells 4 Turbo Test Stands 4 John Wall

Darlington Daventry Ramsgate UK Stamford Huddersfield France Quimper USA Rocky Mount Jamestown Cookeville Stoughton Fridley Charleston Seymour Columbus Mexico San Luis Potosi Brazil Sao Paulo China Chongqing Xiangfan India Wuhan Pune Beijing Indore Wuxi Jamshedpur Global Integration Japan Oyama 5 Common Technical Objectives Worldwide Innovation + Productivity 6 John Wall

$ Millions $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Technical Productivity R/E % Sales 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 5.5% 4.5% 3.5% 2.5% 1.5% 0.5% Sales R&E % Sales 7 Technical Productivity Common Processes Product Line Architecture Engineering Standard Work Analysis Led Design Six Sigma 8 John Wall

Technical Productivity Common Processes Product Line Architecture Engineering Standard Work Analysis Led Design Six Sigma 9 Diversity - Applications 10 10 John Wall

Global Emission Requirements - 2010 2 3 11 11 Stringency Unregulated Group 1 Group 2 Group 3 Group 4 Group 5 5 3 2 4 2 2 3 3 4 Diversity Engine Technology 3500 hp 31 hp 12 12 John Wall

Product Line Architecture Principles: Standardization, Modularity, Reuse Develop broad range of modular technical building blocks Product hardware and software Simulation tools Leverage capability to create integrated products tailored to meet customer needs worldwide Low cost High feature content On-highway Off-highway North America India Match technology to application 13 13 Stable Emissions Architecture 2002 2007 + Particulate Filter R&D Since Late 1980 s EGR R&D Since Early 1990 s Requires a Long Term View 14 14 John Wall

2010 Products Another Evolutionary Step 2010 Key Enablers Advanced Combustion Technology Next-Generation Cooled EGR Flexible Common-Rail Fuel System Cummins Aftertreatment Cummins VG Turbocharger Electronic Controls Capable Base Engine Design 15 15 Stable Emissions Architecture Tier 2 Tier 3 In-Cylinder. No EGR. No Aftertreatment 16 16 John Wall

OptiAir Filter Product Architecture 17 17 Patented features Technical Productivity Common Processes Product Line Architecture Engineering Standard Work Analysis Led Design Six Sigma 18 18 John Wall

Engineering Standard Work Current best practices uniformly applied. Structured approach to product design Critical for global collaboration 19 19 Base Engine Component Warranty $60 Warranty Cost (Millions) $50 $40 $30 $20 50% Reduction $10 $0 2002 2003 2004 2005 2006 20 20 John Wall

Warranty Expense Percent of Sales 5% 4% 3% 2% 1% EGR DPF 0 2000 2001 2002 2003 2004 2005 2006 2007 21 21 Technical Productivity Common Processes Product Line Architecture Engineering Standard Work Analysis Led Design Six Sigma 22 22 John Wall

Analysis Led Design Use computer analysis and simulation to eliminate expensive prototypes and testing More designs evaluated in shorter time Virtual product build Complex system optimization Implemented through Engineering Standard Work Added 2500 hours analysis Eliminated 5500 hours testing / prototypes Better Designs Faster at Lower Cost 23 23 Analysis Led Design Better Designs Faster at Lower Cost 24 24 John Wall

Analysis Led Design Better Designs Faster at Lower Cost 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 25 25 UK Darlington Daventry Ramsgate Stamford Huddersfield France Quimper Cummins Research & Technology India USA Rocky Mount Jamestown Cookeville Stoughton Fridley Charleston Columbus Mexico San Luis Potosi Brazil Sao Paulo India Pune Indore China Chongqing Xiangfan Wuhan Beijing Wuxi Japan Oyama 26 26 John Wall

USA Rocky Mount Jamestown Cookeville Stoughton Fridley Charleston Columbus 27 27 Mexico San Luis Potosi Brazil Sao Paulo UK CRTI opened January 2004 Pure analysis and design Darlington Daventry Ramsgate Stamford Huddersfield India Pune Indore France Quimper Cummins Research & Technology India CFD: #1 India, Top 2 CMI Structural Analysis: Top 5 India, #1 CMI 160 engineers today 250 engineers YE 2008 $25/hr vs. $60/hr: $10 million savings 2007 China Chongqing Xiangfan Wuhan Beijing Wuxi Japan Oyama Six Sigma in Technology and Product Development Technology Higher Quality Products and Processes Development Design Improvement Technology Development For Six Sigma Design For Six Sigma Process Six Sigma Six Sigma Tools and Methodologies 28 28 John Wall

Our Products Must Meet Customer Requirements 29 29 Our Products Must Meet Customer Requirements High Performance Fuel Efficient Reliable and Durable Highly Low Emissions Sociable Connected and Integrated Systems Low Initial Cost Low Maintenance High Quality and Aesthetics 30 30 John Wall

Innovation Emission technology best in world Invested in right technologies across all our businesses Match right technology to application Better quality through stable architecture System integration builds on Cummins synergies 31 31 Innovation in Critical Component Technologies 20% CMI 80% Other 70% CMI 30% Other 50% CMI 50% Other 70% CMI 30% Other 32 32 John Wall

Innovation in Critical Component Technologies 33 33 Innovation in Critical Component Technologies #170% US CMI DPF #130% Euro Other SCR Closed 20% Crankcase CMI Ventilation 100% 80% US Other Light Duty Diesel 2010 50% CMI #1 US HD VGT 50% Other 70% CMI 30% Other 34 34 John Wall

Hybrid Powertrain 100kW Cummins Power Module Cummins is No. 1 in diesel power for hybrids today 35 35 2007 And Beyond... Integrating Engine and Aftertreatment Active Particulate Filter NOx Adsorber Periodic Fuel Injection NOx Adsorber Catalyst NOx Control Using Urea SCR Soot Urea (NH 3 ) Soot Ash 1 st introduction in US Ash 36 36 John Wall

Cummins Powered Dodge Ram video This is how it all comes together: Cummins components Including the most complex and effective diesel exhaust aftertreatment system in production today Integrated into a power system with our OEM partner Chrysler to deliver - More power 50% less noise 2010 emission levels 37 37 Technical Capability and Global Presence Fuel Future Growth 4 New Engines: 2.8L, 3.8L, LDD, Mid-bore HD New Fuel System 3 New Turbocharger Platforms New Integrated Filter Modules New Aftertreatment 38 38 John Wall

39 39 John Wall

Engine Business Jim Kelly, President Who We Are Market Application Marketing Territory Mining/Rail Govt/O&G Marine 14% Power Generation 11% Heavy-duty truck 28% India, 3% SE/NE Asia, 4% South Pacific,1% East Asia, 5% Latin America & Mexico, 13% Construction & Ag 16% 2 Light-duty Automotive & RV 17% Medium-duty Truck & bus 14% EMEA, 12% Engine Sales LTM $7.7B US/Canada 63% Jim Kelly

Where We ve Been Engine Business Historical Performance $9.0 $8.0 $7.0 $6.0 Consolidated Sales $7.7 $7.5 $6.7 $5.4 $1.8 $1.6 $1.4 $1.2 Joint Venture Sales Unconsolidated $1.2 $1.3 $1.5 $1.6 $ Billions $5.0 $4.0 $3.6 $ Billions $1.0 $0.8 $0.8 $3.0 $0.6 $2.0 $0.4 $1.0 $0.2 $0.0 2003 2004 2005 2006 LTM $0.0 2003 2004 2005 2006 LTM 3 Where We re Headed Engine Business Future Performance $ Billions $14.0 $12.0 Consolidated Sales $10.0 $8.0 $7.5 $7.7 $6.0 $4.0 $2.0 13% CAGR $13.3 $ Billions $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 Joint Venture Sales Unconsolidated $1.6 $1.5 20% CAGR $3.7 $0.0 2006 LTM 2011 $0.0 2006 LTM 2011 4 Jim Kelly

Engine Business Sales Volume Growth North America 2006: 397,000 2011: 708,000 Rest of World 2006: 154,000 2011: 193,000 EMEA 2006: 63,000 2011: 110,000 India 2006: 97,000 2011: 201,000 China 2006: 122,000 2011: 423,000 2006 Total = 833,000 2011 Total = 1,635,000 How We re Getting There Growth drivers Emission regulations Emerging markets Strategic OEM partnerships New engine platforms Steady aftermarket revenue growth 6 Jim Kelly

How We re Getting There Emission Regulations Competitive advantage Right technology Growing market share Expect regulatory changes to continue On board diagnostics Global emissions alignment Carbon regulations Industrial segments: global presence / partnerships 7 How We re Getting There Emerging Markets China Medium Duty Truck Heavy Duty Truck Light Commercial Vehicle Construction India Medium Duty Truck Light Commercial Vehicle Russia Medium Duty Truck Brazil Medium Duty Truck Construction/Agriculture 8 Jim Kelly

How We re Getting There Strategic OEM Partnerships 9 How We re Getting There New Engine Platforms 1,800 Engine Production (Thousands) 1,600 1,400 1,200 1,000 800 600 400 200 0 2006 Organic Growth New Platforms 2011 10 Jim Kelly

How We Are Getting There Steady Aftermarket Revenue Growth $2B sales by 2011 Strong margins create solid earnings platform Growth opportunities Increasing engine population in all platforms, territories Remanufactured product growth Leverage outstanding distribution 11 Growing Margin Dollars Engines Segment EBIT ($ M) $1,400 $1,200 $1,000 $800 $600 12% CAGR $400 $200 $0 2003 2006 2011 12 Jim Kelly

Growth in JV Income Key Joint Ventures Dong Feng Cummins Foton Cummins Tata Cummins Cummins Mercruiser Segment JV Income ($ M) $160 $140 $120 $100 $80 $60 $40 $20 $0 2003 2006 2011 13 Earnings Growth Global Growth Opportunities Positioned Well Technology Partners Leveraging Revenue Growth To Earnings Revenue Growth Segment EBIT % Old Targets 8 10% 7 10% New Targets 13% 8.5% 14 Jim Kelly

Power Generation Tom Linebarger, President Who We Are Market Application Marketing Territory EMEA 34% Standby Power 56% Distributed Generation 32% Latin America 8% North America 36% India 10% Mobile Power 12% Asia Pacific 7% China 5% Power Generation Sales LTM $2.7B 2 Tom Linebarger

Where We ve Been Power Generation Historical Performance Consolidated Sales Segment EBIT $3,000 $2,500 $2,000 23% CAGR $1.8 $2.0 $2.4 $2.7 $300 $250 $200 411% CAGR $220 $284 $ Billions $1,500 $1,000 $1.3 $ Millions $150 $100 $145 $500 $50 $60 $0 2003 2004 2005 2006 LTM $0 -$50 ($19) 2003 2004 2005 2006 LTM 3 Where We re Going Power Generation Future Performance Consolidated Sales Segment EBIT $6,000 $5,000 $4,000 15% CAGR $4.8 $600 $500 $400 17% CAGR $480 $ Billions $3,000 $2,000 $2.4 $2.7 $ Millions $300 $200 $220 $284 $1,000 $100 $0 2006 LTM 2011 $0 2006 LTM 2011 4 Tom Linebarger

How We re Getting There Capitalize on industry growth Leverage existing market leadership Establish leadership in all major markets Expand into new and adjacent markets 5 How We re Getting There Capitalize on Industry Growth Electricity demand Dependence on electricity Developing economies Low investment in generation and distribution 6 Tom Linebarger

How We re Getting There Leverage Existing Market Leadership Mobile Power Distributed Generation Standby Power 85% 30% 40% Motorized RV Basic Power High-spec Standby 40% 33% Alternators 25% Commercial Mobile Recreational Marine 7 Source: Parkinson and company estimates How We re Getting There Establish Leadership in All Major Markets 35% 30% 25% 20% 15% 10% 5% Cummins Leadership Positions Top 8 regions 92% of total Market leader (#1 or #2) Leader in some segments Not a market leader 0% North America Western Europe China Middle East India Southeast Asia Latin America Africa 8 Tom Linebarger

How We re Getting There Expand Into New and Adjacent Markets 9 Earnings Growth Strong growth opportunities Solid leadership team Low cost producer Old Targets New Targets Increased value-add Revenue Growth 8 10% 15% Segment EBIT % 7 9% 10% 10 Tom Linebarger

Distribution Business Rich Freeland, President Who We Are Historical strength of Cummins Global reach Independent franchises Strategy changed in 2002 Consolidate into fewer, larger distributors Cummins takes equity stake Favorable markets Diversified / growing / profitable Counter cyclical Outstanding customer support consistent 1 Rich Freeland

Who We Are Market Application Market Territory Parts and Consumables 6% Engine 20% North America 6% China 6% Africa 5% LA 3% Europe 30% India 8% Service 18% Power Gen 26% M.E. 13% Asia Pacific 29% Distribution LTM Sales $1.4B 2 Where We ve Been 2001 $3.2B 2006 $5.4B Consolidated Joint Venture Independent Cummins participation $3.2B @ 28% = $0.9B Cummins participation $5.4B @ 67% = $3.6B CMI ownership increased from 28% to 67% of total revenues 3 Rich Freeland

Where We ve Been Distribution Historical Performance $2.5 Consolidated Sales $2.5 Joint Venture Sales Unconsolidated $2.2 $2.0 $2.0 $ Billions $1.5 $1.0 $0.7 $1.0 $1.2 $1.4 $ Billions $1.5 $1.0 $0.8 $1.1 $1.3 $0.5 $0.5 $0.0 2003 2004 2005 2006 $0.0 2003 2004 2005 2006 4 Where We ve Been Sales EBIT $ Billions $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.7 27% CAGR $1.0 $1.2 $1.4 $ Millions $160 $140 $120 $100 $80 $60 $51 41% CAGR $79 $107 $144 $0.4 $40 $0.2 $20 $0.0 2003 2004 2005 2006 $0 2003 2004 2005 2006 5 Rich Freeland

Where We re Headed 2006 $5.4B 2011 $8.9B Consolidated Joint Venture Independent Cummins participation $5.4B @ 67% = $3.6B Cummins participation $8.9B @ 88% = $7.8B In 2011, 88% of revenue will flow through fully or partially owned distributors. 6 How We re Getting There Acquisitions and Consolidations North America Equity in 14 of 16 Distributors Latin America Formation of new Joint Ventures Africa Grow/expand West Africa JV Asia Grow/expand Thailand/Vietnam JV 7 Rich Freeland

Where We re Headed Distribution Future Performance Consolidated Sales Joint Venture Sales Unconsolidated $ Billions $5.0 $4.0 $3.0 $2.0 $1.4 15% CAGR $2.8 $ Billios $5.0 $4.0 $3.0 $2.0 $2.2 18% CAGR $5.0 $1.0 $1.0 $0.0 2006 2011 $0.0 2006 2011 8 How We re Getting There Grow Organically Parts and Service Growing engine population worldwide Complexity of products increasing Adding service outlets in emerging markets Power Generation: Building sales capabilities Engines: Small OEMs 9 Rich Freeland

How We re Getting There Build Capabilities Common processes Enterprise resource planning Distributor and BU synergies Customer Support Excellence Proactive and predictive services Re-engineer customer contact centers 10 New Targets Consolidation and acquisitions All distributors/regions to profit target $350 $300 $250 Segment EBIT 17% CAGR $310 Leveraging sales volume Build capabilities invest in growing regions ($ Millions) $200 $150 $100 $51 $144 $50 $0 2003 2006 2011 11 Rich Freeland

Growth in JV Income Almost half of profits by 2011 coming from the JV Income line Leverage North America JVs act as one Continue acquisitions and consolidations and expand markets in newly formed JVs around the globe ($ Millions) $160 $140 $120 $100 $80 $60 $40 $20 $0 Segment JV Income $134 $54 $16 2003 2006 2011 20% CAGR 12 Earnings Growth Leverage Cummins equipment growth Old Targets New Targets Continue acquisitions, consolidations and integrations Revenue Growth 10% 15% World-class customer support Make best Distribution System even better Cannot be duplicated Segment EBIT % 8 10% 11% 13 Rich Freeland

Components Rick Mills, President Who We Are Four distinct business units Emission Solutions Filtration Fuel Systems Turbo Technologies 2 Rick Mills

Who We Are Market Application Marketing Territory Air Intake 11% Specialty 6% Engine Filtration 20% LA 5% AsiaPac 11% Catalytic Exhaust 11% Acoustic Exhaust 11% Fuel Systems 14% Turbos 28% EMEA 23% N America 61% Components Revenue Q2 LTM $2.6B 3 Where We ve Been Components Historical Performance Consolidated Sales $3.0 $2.5 $2.0 $1.8 $2.0 $2.3 $2.6 $ Billions $1.5 $1.0 $1.3 $0.5 $0.0 2003 2004 2005 2006 LTM 4 Rick Mills

Where We re Going Components Future Performance $6.5 $5.5 $4.5 Consolidated Sales 20% CAGR 6.0 $ Billions $3.5 $2.5 2.3 2.6 $1.5 $0.5 2006 LTM 2011 5 How We re Getting There Growth Focus Emissions Fuel Economy Engine Performance 6 Rick Mills

How We re Getting There Emission Solutions Successful 2007 product launches Significant growth opportunity Capacity expansion $1.5B Revenues in 2011 Evolving Global Emission Standards Accelerates Market Growth for Diesel Catalytic Exhaust Global Market Size ($B) $6 $5 $4 $3 $2 $1 We have 30% of the market today $0 2006 2010 7 How We re Getting There Filtration Most profitable business in the segment Profit margins improving Emissions creating new growth opportunities $2B Revenues in 2011 8 Rick Mills

How We re Getting There Fuel Systems Critical to engine performance and emissions Industry leading common rail fuel system Scania partnership Increasing demand $0.5B Revenues in 2011 9 How We re Getting There Turbo Technologies Critical to emissions, fuel economy and engine performance Cummins has the leading technology Demand driving significant capacity expansion $2B Revenues in 2011 Millions 4.5 4 3.5 3 2.5 2 1.5 1 0.5 Turbo Unit Volumes 1.5 1.2 22% CAGR 3.9 0 2005 2006 2011 10 Rick Mills

How We re Getting There Leverage Cummins Strengths Grow with Cummins engines Grow with Cummins OEM partners Leverage global distribution to grow aftermarket 11 How We re Getting There Growth With Cummins OEM Partners Aftertreatment Filtration Fuel Systems Turbos Navistar CNH Volvo Scania Paccar Daimler Komatsu 12 Rick Mills

Business Challenges New plant/product launches High demand causing capacity constraints High start-up costs Escalating metal costs Underperforming businesses 13 Actions Increasing capacity Focus on operating efficiencies Pricing actions Divesting unprofitable businesses 14 Rick Mills

Transitioning New products launched Industry leading technology Capacity expansion Divesting of non-strategic businesses New target margin of 9% Segment EBIT ($ M) $600 $500 $400 $300 $200 $100 $0 Components 2003 2006 2011 15 Earnings Growth Old Targets New Targets Revenue Growth 8 10% 20% Segment EBIT % 7 9% 9% 16 Rick Mills

Emerging Markets China Steve Chapman, Group Vice President Emerging Markets How Cummins Does It Cummins has succeeded in nations renowned for being tough on foreign investors Cummins figured it out well before the competition. (BusinessWeek, August 22/29, 2005) Partnerships local production and minimized capital Empowered local management and employees Global sourcing and exporting Local engineering potential 2 Steve Chapman

Evolution of Cummins in China Imported Products Licensee Manufacturing Joint Ventures Local IP and Support 1975-1985 1985-1995 1995-2005 Today $25M $200M Consolidated > $650M Unconsolidated > $650M Growth 3 Who We Are Xi an XCEC JV Engine Plant Xi an Distributor Shenyang Shenyang Distributor Beijing China Headquarters Genset Assembly Plant BFCEC JV Engine Plant (under construction) Beijing Distributor Emissions Solutions Plant (under construction) Wuxi CTT JV Plant Vanewheel JV Plant CGT Plant Chongqing CCEC JV Engine Plant Urumqi Urumqi Distributor Chengdu Chengdu Distributor Kunming Kunming Distributor Guangdong area Hong Kong Distributor Guangzhou Distributor Shenzhen JV Distributor Urumqi Chengdu Xi an Chongqing Kunming Beijing Wuhan Guangdong Shenyang Wuxi Shanghai Taiwan Shanghai Filtration Campus Filtration JV Plant IPO & Marine Offices China PDC Valvoline JV Shanghai Distributor Wuhan DCEC JV Engine Plant Nelson Exhaust JV Plant Fuel Systems Plant (under construction) EA R&D Center Wuhan Distributor Taiwan Taiwan Distributor 4 Steve Chapman

Who We Are 12 plants, 1 technical center 12 service centers, 1 PDC, 240+ dealers 5000+ employees in wholly-owned and JV entities $140M investment, over $200M committed Consolidated > $650M Unconsolidated > $650M Strong profitability and returns Over 1 million engines in operation 5 Who We Are Engine 43% Consolidated Sales Power Generation 28% Joint Venture Sales Unconsolidated Power Generation 13% Distribution 5% Components 17% Distribution 12% Engine 75% Components 7% LTM Sales - $669M LTM Sales - $691M 6 Steve Chapman

Where We ve Been China Historical Performance Consolidated Sales Joint Venture Sales Unconsolidated $ Millions $800 $700 $600 $500 $400 $300 $286 24% CAGR $580 $572 $454 $669 $ Millions $800 $700 $600 $500 $400 $300 $357 $643 18% CAGR $488 $579 $691 $200 $200 $100 $100 $0 2003 2004 2005 2006 LTM $0 2003 2004 2005 2006 LTM 7 Where We re Headed China Future Performance $Millions $2,000 $1,800 Consolidated Sales $1,600 $1,450 $1,400 $1,200 $1,000 $800 $669 $600 $572 20% CAGR $ Millions $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 Joint Venture Sales Unconsolidated $579 27% CAGR $691 $1,900 $400 $400 $200 $200 $0 2006 LTM 2011 $0 2006 LTM 2011 8 8 Steve Chapman

How We re Getting There Key Growth Drivers GDP growth Significant infrastructure development Regulations converging to international standards Strong market growth 9 How We re Getting There Well Positioned for Growth Long-term partnerships Strong network Complementary businesses Market leadership Capacity growth Continuous improvement and change People Local technology capability New products 10 Steve Chapman

How We re Getting There New Product Platforms Joint Venture Engine Products 2.8L and 3.8L 13L Power Generation Sub Systems & Components Filtration Air Handling Fuel Systems Emissions Solutions 11 12 How We re Getting There 2011 JV Engine Products Engine JVs BFCEC DCEC XCEC CCEC Product ISE ISF B C L ISD ISL ISZ ISM M11 NT QSK19 QSK38 Liters 2.8 3.8 3.9/5.9 8.3 8.9 4.5/6.7 8.9 13 11 11 15 19 38 HP range 107-161 147-174 123-232 217-320 296-354 138-282 286-369 420-540 335-440 176-350 176-450 550-899 1080-1609 Steve Chapman

Earnings Growth Strong position headed into Euro III and IV emission standard changes High localization of content minimizes currency impact $450 $400 $350 $300 China EBIT 22% CAGR Increased share of wallet with key OEM partners Joint Venture income increasing dramatically ($ Millions) $250 $200 $150 $100 $50 $0 2003 2006 2011 13 13 Growth in JV Income Growth from new JVs: Foton Cummins and Xi an Cummins Increased contribution: Dongfeng Cummins Expanded role: Chongqing Cummins ($ Millions) $160 $140 $120 $100 $80 $60 $40 China JV Income 14% CAGR $20 $0 2003 2006 2011 14 14 Steve Chapman

Earnings Growth China strategically important to CMI Great domestic market Multiple, strong OEM partnerships Fantastic infrastructure Well positioned for growth 15 Steve Chapman

Emerging Markets India Anant Talaulicar Vice President Evolution of Cummins in India Joint Venture Component Investments Tata Partnership Majority Position Services 1960s -1970s Late 1980s Mid 1990s 1997 Early 2000s Kirloskar Cummins and CDSS Filtration and Generator Technologies Tata Cummins And Tata Holset Cummins India Ltd. KPIT Cummins and CRTI 2 Anant Talaulicar

Who We Are Dewas Cummins Turbo Technologies New Delhi New Delhi Valvoline Cummins 3 Daman Generators Cummins Exhaust Pune Pune Cummins India Ltd. Cummins Sales & Service KPIT Cummins Cummins Business Services International Purchasing Office Fleetguard Filters Cummins Research & Technology India Dewas Hosur Daman Jamshedpur Ahmednagar Ahmednagar Cummins Generator Technologies Hosur Fleetguard Filters Jamshedpur Tata Cummins Fleetguard Filters Who We Are 15 plants, 2 technical centers 1 service center, 1 PDC, 75 dealers 6500+ employees in wholly-owned and JV entities $275M investment from 2004 through 2010 Consolidated > $650M Unconsolidated > $500M Strong profitability and returns Over 763,000 engines in operation 4 Anant Talaulicar

Who We Are Consolidated Sales Joint Venture Sales Unconsolidated Engine 32% Power Generation 44% Components 11% Distribution 18% Components 7% Distribution 17% Engine 71% LTM Sales - $650M LTM Sales - $500M 5 Where We ve Been India Historical Performance $ Millions $800 $700 $600 $500 $400 $300 $200 Consolidated Sales Domestic Export $691 $518 $432 $354 $267 27% CAGR $ Millions $800 $700 $600 $500 $400 $300 $200 Joint Venture Sales Unconsolidated $192 Domestic 28% CAGR $284 $335 Export $486 $516 $100 $100 6 $0 2003 2004 2005 2006 LTM $0 2003 2004 2005 2006 LTM Anant Talaulicar

Where We re Headed India Future Performance $ Millions $1,600 Consolidated Sales $1,400 $1,350 $1,200 $1,000 $800 $691 $600 $518 $400 $200 21% CAGR $ Millions $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 Joint Venture Sales Unconsolidated $486 20% CAGR $516 $1,200 $0 2006 LTM 2011 $0 2006 LTM 2011 7 How We re Getting There Key Growth Drivers GDP growth Significant infrastructure development Regulations converging to international standards 12% peak power deficit Leveraging low cost products/services globally 8 Anant Talaulicar

How We re Getting There Well Positioned for Growth Market leadership Dominance in heavy commercial vehicles, generators Strong network Complementary businesses Long-term partnerships Continuous improvement and change People Six Sigma and Zero Defect New products Local technology capability Capacity growth new campus near Pune 9 Earnings Growth Strong position headed into Euro III and IV emission standard changes High localization of content minimizes currency impact Manufacturing scale Increasing share of wallet with key OEM partners Strong distribution and customer support ($ Millions) $300 $250 $200 $150 $100 $50 India EBIT Joint Venture earnings $0 2003 2006 2011 10 Anant Talaulicar

Growth in JV Income Tata Cummins capacity to more than double $60 India JV Income ($ Millions) $50 $40 $30 $20 42% CAGR $10 $0 2003 2006 2011 11 Earnings Growth India strategically important to CMI Great domestic market Low cost producer leverage Fantastic infrastructure Well positioned for growth 12 Anant Talaulicar

Cummins Inc. Jean Blackwell, CFO Who We Are Growing Sales Across the Business 12,000 Consolidated Sales 4,500 Joint Venture Sales Unconsolidated 10,000 4,000 3,500 8,000 3,000 Millions $ 6,000 Millions $ 2,500 2,000 4,000 1,500 2,000 1,000 500 0 2003 2004 2005 2006 0 2003 2004 2005 2006 2 Jean Blackwell

Who We Are Growing Earnings Faster Than Sales $16 $14 Total Sales and Net Earnings $11.4B $0.8 $0.7 $12 $9.9B $0.6 In Billions $10 $8 $6 $4 $6.3B $8.4B $0.5 $0.4 $0.3 $0.2 $2 $0.1 $0 2003 2004 2005 2006 $0 Total Sales Net Earnings 3 Who We Are Generating Strong Cash Flow 900 840 800 760 Operating Cash Flow (M$) 700 600 500 400 300 200 158 614 100 0 2003 2004 2005 2006 4 Jean Blackwell

Who We Are Delivering on Commitments Strong balance sheet Reduced debt Funded our liabilities Grew our business Invested for the future Returned value to shareholders Return on equity Share appreciation Dividends Share repurchase $815M debt reduction $800M global pension funding $787M cap ex exceeding target 50% CAGR since 2003 67% dividend increase $370M 5 Where We re Headed Consolidated Sales Joint Venture Sales Unconsolidated 20,000 18,000 16,000 12% CAGR 10,000 9,000 8,000 18% CAGR Millions $ 14,000 12,000 10,000 Millions $ 7,000 6,000 5,000 8,000 4,000 6,000 3,000 4,000 2,000 2,000 1,000 0 2006 2011 0 2006 2011 6 Jean Blackwell

Where We re Headed Geographic Diversity 1999 2006 2011 39% 61% 50% 50% 53% 47% US Consolidated Net Sales ROW Consolidated Net Sales 7 Where We re Headed Delivering on Commitments Strong balance sheet Liquidity Funding commitments Growing our business Investing for the future Returning value to shareholders Share appreciation Dividends Share repurchase 8 Jean Blackwell

Where We re Headed Business Performance Targets Sales Growth EBIT % Engine Business 13% 8.5% Power Generation 15% 10% Distribution 15% 11% Components 20% 9% 9 Where We re Headed Cummins Inc. Performance Targets Sales growth 12% EBIT 10% ROANA 25% ROE 20% 10 Jean Blackwell

How We re Getting There Continued Focus on Strategic Principles Leverage complementary businesses Create shareholder value Low cost producer Grow in related markets Create the right environment for success 11 How We re Getting There A Disciplined Growth Model Earnings Growth Creating Shareholder Value Disciplined Cash Management Managing Risk 12 Jean Blackwell

How We re Getting There Sales growth 12% EBIT 10% R&D 3% Capital exp. 3-4% Disciplined Cash Management Earnings Growth Creating Shareholder Value ROANA 25% ROE 20% Debt/EBITDA 1.25-1.50 Liquidity $2B Managing Risk Cash on hand $300 to $500M Working capital 16.5 to 17.5% 14 How We re Getting There Cash $300 500M Liquidity $2B Investment Opportunities $3.5B Dividends Stable and Growing Share Repurchase Continuing 16 Jean Blackwell

Appendix

Joint Venture Sales Unconsolidated Engines Distribution $1,600 $3,000 $1,474 $1,400 $1,316 $2,497 $1,285 $1,232 $2,500 $1,200 $529 $1,000 $800 $600 $2,000 $1,500 $1,000 $1,715 $1,204 $1,029 $ Millions $ Millions $400 $200 $500 $0 2003 2004 2005 2006 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. $0 2003 2004 2005 2006

Joint Venture Sales Unconsolidated Power Generation Components $180 $160 $140 $120 $100 $80 $162 $130 $105 $72 $140 $120 $100 $80 $60 $123 $110 $94 $72 $ Millions $ Millions $60 $40 $40 $20 $20 $0 $0 2003 2004 2005 2006 2003 2004 2005 2006

Non-GAAP Reconciliations

Non-GAAP Reconciliation EBIT Years Ended Millions 2003 2004 2005 2006 EBIT $ 181 $ 543 $ 907 $ 1,179 Less: Interest Expense $ 90 $ 111 $ 109 $ 96 Earnings before income taxes and minority interests $ 91 $ 432 $ 798 $ 1,083 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.

Non-GAAP Reconciliation EBIT Quarters Ended Millions Q3 06 Q4 06 Q1 07 Q2 07 LTM EBIT $ 296 $ 303 $ 243 $ 354 $ 1,196 Less: Interest Expense $ 23 $ 20 $ 16 $ 14 $ 73 Earnings before income taxes and minority interests $ 273 $ 283 $ 227 $ 340 $ 1,123 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.