Cummins_SIRAN teleconference

SIRAN TeleconferenceSeptember 5, 2007

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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 EBIT to GAAP financial measures.

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Agenda

Well positioned for sustained earnings growth – Dean Cantrell, Director Investor Relations

Creating cleaner and healthier environment– Tina Vujovich, Vice President, Marketing &

Environmental Policy

Living our Core Values at Cummins– Marya Rose, Vice President, General Counsel &

Corporate Secretary

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Our Vision/MissionVISIONVISION

Making people’s lives better by unleashing the Power of Cummins.

MISSIONMISSION• Motivating people to act like owners working

together.

• Exceeding customers expectations by always being the first to market with the best products.

• Partnering with our customers to make sure they succeed.

• Demanding that everything we do leads to a cleaner, healthier, safer environment.

• Creating wealth for all stakeholders.

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Diversified Global Power Leader

Four Complementary Businesses

Engines PowerGeneration

Components Distribution

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Creating Greater Shareholder Value

Doubled our revenue in 5 yearsHighest period of net earnings as a percent of sales in over 40 yearsGenerated $4.6 billion in EBITDA since 2003Improved debt to capital from 60% in 2003 to 17% todayActively repurchased 3.5 million shares in 2 yearsExceeded both ROANA and ROE targets for over three years

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Focused on Sustained Earnings Growth

Our customers recognize Cummins for our technology leadership

Cummins’ global presence is unmatched by others

Cummins is well positioned for long-term growth

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Global Adoption Emission Standards

Mexico2008

Australia2008

Brazil2009

Europe2009US /

Canada2010

India2010

China2010

Off-highway2011-14

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3500

Car

6000 – 8500 lb GVW >8500 lb GVW

Light Vehicles (<14,000 GVW)

Light Truck (includes PU trucks, SUVs and Vans)

<6000 lb GVW

9.9 M 6.6 M 0.85 M2.9 M

100% gasoline 100% Gasoline 67% Diesel, 33 % Gas

Dieselization of North America

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Profitable Growth – Engines

Light Duty Diesel in U.S. and China

13- and 11-liter Engines in China

Market Share Gains

Midrange Engine Capacity

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2006 OrganicGrowth

NewPlatforms

2010

Engi

ne P

rodu

ctio

n (M

illio

ns)

In 2010, 25% of our engine volume will come from new engine platforms.

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Profitable Growth – Components

$0

$1

$2

$3

$4

$5

$6

2006 2010

Glo

bal M

arke

t Siz

e ($

B)

Strategic advantage in emissions complianceSignificant future growth in revenue and earningsMultiple new product introductionsWinning non-Cummins business

Evolving Global Emission Standards Accelerates Market Growth for

Diesel Catalytic Exhaust

We have 30% of the market today

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Profitable Growth – Distribution

Revenues through our distribution channel are growing 10% CAGR.In 2011, nearly 90% of revenue will flow through fully or partially owned distributors.

20062011

Joint Venture Company Owned Independent

2001

$3.2B $5.4B $8.9B

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Profitable Growth – Power Generation

Pursuing market leadership in commercial generators

Expanding into adjacent consumer markets

Market Leader (# 1 or # 2)

Leader in some segments

Not a market leader

Global Generator Set Consumption (Total Output)Approximate $7 Billion Annual Global Market

Top 8 regions 92% of total

0%

5%

10%

15%

20%

25%

30%

35%

NorthAmerica

WesternEurope

China MiddleEast

India SoutheastAsia

LatinAmerica

Africa All Others

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Agenda

Well positioned for sustained earnings growth – Dean Cantrell, Director Investor Relations

Creating cleaner and healthier environment– Tina Vujovich, Vice President, Marketing &

Environmental Policy

Living our Core Values at Cummins– Marya Rose, Vice President, General Counsel &

Corporate Secretary

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Cummins’ Climate Change Initiative

Cummins joined the EPA’s Climate Leaders Program with aggressive target

For Cummins, reducing GHG emissions is fundamentally about improving energy efficiency.

Cummins pledged to reduce global GHG intensity emissions by 25% from 2005 to 2010

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Facilities GHG Improvement

Complete scope worldwide– Direct and indirect energy consumption– Facilities and processes

Assessing energy efficiency and opportunities at all major facilities

Tracking and reporting

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Product GHG Improvement

Customers worldwide demand energy efficiency from our products

Cummins clean diesels today deliver 30% lower net CO2 emissions than conventional gasoline engines

Additional product strategies will reduce fuel consumption of our products to even more competitive levels

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GHG Initiative to Sustainability

Cummins’ commitment to sustainability is good business

Providing products that help customers succeed is best way for us to compete successfully

We are engaging our most powerful resource –our employees

We are making progress toward goals

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Agenda

Well positioned for sustained earnings growth – Dean Cantrell, Director Investor Relations

Creating cleaner and healthier environment– Tina Vujovich, Vice President, Marketing &

Environmental Policy

Living our Core Values at Cummins– Marya Rose, Vice President, General Counsel &

Corporate Secretary

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Our Core Values

Corporate ResponsibilityDiversityIntegrityGlobal InvolvementInnovationDelivering Superior Results

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Corporate Social Responsibility

Cummins Foundation– Historically served North America, with affiliated

foundations in India and Mexico– Increased global focus – China, Brazil, Europe,

Australia– Emphasis on: health, education, economic

development, assisting people living at margins of society

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Corporate Social Responsibility

Corporate Charitable Donations in 2006– $4 million in Foundation grants– $4 million in direct corporate contributions

Employee Involvement– Community Involvement Teams– Every Employee/Every Community

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Corporate Social Responsibility

Top company for Asian Americans Top company for Asian Americans

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Cummins Export Policy – Basic Tenets

Cummins will:

Remain committed to compliance

Know which countries are subject to sanctions

Know our customers and business partners

Know our products

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Cummins Export Policy - Overview

Cummins scrupulously follows U.S. export laws.

Cummins has strengthened export policies and controls in past year.

Cummins has given export controls training to thousands of employees in the past year.

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Cummins Export Policy - Overview

Cummins has openly communicated export policies and practices to investment community

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Cummins Export Policy – SudanCummins responded decisively to concerns raised regarding JV sales to Sudan.

Cummins’ export policy bans all direct sales of its products to Sudan.

Training has raised awareness and resulted in potential sales to Sudan being halted.

Cummins has actively engaged its joint venture partners in China on this issue.

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Cummins Labor Relations - Overview

Cummins provides fair pay and consistent benefits to all employees.– Competitive wages– Quality, affordable health care– Secure pension benefits– Safe working conditions

Cummins teams with employees to create an inclusive workplace – in both union and non-union locations.

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Cummins Labor Relations – Overview

Cummins has been consistently recognized as an ‘employer of choice.’

Cummins has more than 5,000 unionized workers in the U.S. and works with unions around the world.

Allegations in recent Teamsters report are inaccurate and unfounded.

Questions

Contact information:

Investor_relations@cummins.com(812) 377-3121