Cummins

COMPANY PROFILE

Cummins Inc.

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TABLE OF CONTENTS

Company Overview..............................................................................................3

Key Facts...............................................................................................................3

Business Description...........................................................................................4

History...................................................................................................................6

Key Employees...................................................................................................10

Key Employee Biographies................................................................................12

Major Products and Services............................................................................18

Revenue Analysis...............................................................................................19

SWOT Analysis...................................................................................................21

Top Competitors.................................................................................................27

Company View.....................................................................................................28

Locations and Subsidiaries...............................................................................31

Cummins Inc. Page 2© MarketLine

Cummins Inc.TABLE OF CONTENTS

COMPANY OVERVIEW

Cummins Inc. (Cummins or "the company") is engaged in the manufacturing of diesel and naturalgas engines as well as engine-related components. The company operates globally with majorpresence in the US. It is headquartered in Columbus, Indiana and employed approximately 46,000people as on December 31, 2012.

The company recorded revenues of $17,334 million during the financial year ended December 2012(FY2012), a decrease of 4% as compared to FY2011. The operating profit of the company was$2,254 million year FY2012, a decrease of 15.9% as compared to FY2011.The net profit was $1,645million in FY2012, a decrease of 11% as compared to FY2011.

KEY FACTS

Cummins Inc.Head Office500 Jackson StreetColumbusIndiana 47202 3005USA

1 812 377 5000Phone

Fax

http://www.cummins.comWeb Address

17,334.0Revenue / turnover(USD Mn)

DecemberFinancial Year End

46,000Employees

CMINew York Ticker


Cummins Inc.Company Overview

BUSINESS DESCRIPTION

Cummins designs, manufactures, distributes and services diesel and natural gas engines and otherengine-related products.The company produces range of products including filtration, after treatment,turbochargers, fuel systems, controls systems, air handling systems and electric power generationsystems. Cummins sells products to original equipment manufacturers (OEMs), distributors andother customers.

The company serves its customers through a network of approximately 600 company owned andindependent distributor locations and approximately 6,500 dealer locations in more than 190 countriesand territories with major presence in the US, China, Brazil, India, Mexico, the UK and Canada.

The company operates through four business segments: engine, distribution, components and powergeneration.

The engine segment manufactures and markets diesel and natural gas-powered engines under theCummins brand name, as well as certain customer brand names. The segment offers engines witha displacement range of 2.8 to 91 liters and horsepower ranging from 48 to 3,500. It also offers newparts and service as well as remanufactured parts and engines. The engine segment is organizedby engine displacement size and serves range of end-user markets including heavy-duty trucks,medium-duty trucks and buses, light-duty automotive and recreational vehicles (RVs), and industrialvehicles.

The distribution segment consists of 23 company-owned distributors and 18 joint ventures thatdistribute the company's products and services to end-users at approximately 400 locations in around80 distribution territories.Through this network, the company provides parts and service, full servicesolutions including maintenance contracts, engineering services, and integrated products.

Cummins' components segment supplies products which complement its engine segment, includingfiltration products, turbochargers, aftertreatment systems and fuel systems for commercial dieselapplications. It manufactures filtration and exhaust systems for on and off highway heavy duty andmid-range equipment. This segment is a supplier of filtration products for industrial and passengercar applications. In addition, it develops aftertreatment and exhaust systems to help its customersmeet emission standards. The components segment operates through four businesses: emissionsolutions, turbo technologies, filtration, and fuel systems.

The emission solutions business is engaged in the designing, manufacturing and integrating exhaustaftertreatment technology and solutions for the commercial on-and off-highway medium-duty,heavy-duty and high-horsepower engine markets. The turbo technologies business designs,manufactures, and markets turbochargers for light-duty, mid-range, heavy-duty, and high horsepowerdiesel applications. Fuel systems business designs and manufactures new and replacement fuelsystems primarily for heavy-duty on-highway diesel engine applications and also remanufacturesfuel systems and engine control modules.


Cummins Inc.Business Description

The power generation segment designs and manufactures power generation systems, includingengines, controls, alternators, transfer switches, and switchgear. This segment serves the need forstandby power, distributed generation power, as well as auxiliary power in specialty mobileapplications. The power generation segment operates through power products, power systems,generator technologies, and power solutions.


Cummins Inc.Business Description

HISTORY

Cummins' predecessor Cummins Engine Company was established by William Glanton Irwin, aninvestment banker in 1919. The Irwin family helped a mechanic, Clessie Lyle Cummins, set up thebusiness.The business flourished during World War I, owing to government contracts.The company'sfirst major contract was from Dutch diesel licensor, Hvid.

The company installed a diesel engine for Packard limousine and created the first diesel poweredcar in the US in 1929. Mr. Clessie made several prototypes through which he promoted diesel-enginepowered cars among the mass public. After World War II, the company witnessed high demand forits engines; and by the late 1950s, the company had sales of over $100 million. During the 1960s,Cummins Engine Company entered other countries. By the end of that decade, the company had2,500 dealers in 98 countries.

During the 1980s and 1990s, Cummins Engine Company undertook a modernization program,investing $1.3 billion in new plants, equipment, and engine designs. The company shortened itsname from Cummins Engine Company to Cummins in 2000.

The company entered into a supply agreement with PACCAR in 2001. The agreement coveredCummins' heavy-duty ISX, Signature, N14, ISM, and ISL engine models. Cummins also suppliedmedium-duty engines for the DAF LF Series trucks of DAF Trucks, a European subsidiary of PACCAR.During the same year, Cummins also formed a joint venture named Cummins Westport with Westport,to develop and market low-emission, high performance natural gas engines.

In 2002, the company signed a distribution agreement with Kawasaki Gas Turbines to sell andservice generator sets and power systems powered by Kawasaki Gas Turbines in the US. In thefollowing year, Cummins Westport signed a memorandum of understanding (MoU) with DongfengCummins Engine (DCEC) of China for a comprehensive supply agreement enabling DCEC tomanufacture CWI natural gas B-series engines in China. Also in 2003, the company extended itsexclusive supply agreement with Chrysler for diesel engines used in the Dodge Ram heavy-dutypickup truck. In addition, the company established Cummins Research and Technology India (CRTI)in India.This partially-owned subsidiary provides services such as structural dynamics, computationalfluid dynamics, and design to all the company's entities.

During 2004, Cummins established its first technical centre in China. In the following year, Cumminsinitiated a feasibility agreement with China's Shaanxi Automobile for the formation of a 50/50 jointventure company to produce the Cummins ISM 11-liter heavy duty engine.

In 2006, the company formed a joint venture with KAMAZ, a vehicle manufacturer in Russia, toproduce B Series engines (120-275 horsepower) under the name Cummins Kama. In the same year,Tata Cummins (TCL), a joint venture between Cummins and Tata Motors, began manufacturing ISBengines. In addition, Cummins launched its on-highway engine product line to meet the USEnvironmental Protection Agency (EPA) and California Air Resources Board (CARB) emissions


Cummins Inc.History

standards for 2007. Subsequently, Cummins Turbo Technologies, a subsidiary of Cummins, openeda manufacturing plant in Charleston to produce turbochargers for heavy-duty diesel engines.

Further in 2006, DCEC opened a technical center in central China's Wuhan City. In the same year,Cummins launched Dodge Ram Turbo Diesel engines with features like increased displacement of6.7 liters and increased horsepower and torque for Dodge Ram 2500 and 3500 models trucks.Additionally, Cummins and Beiqi Foton Motor joined to form a 50/50 joint venture company, BeijingFoton Cummins Engine (BFCEC), to produce Cummins light-duty, high-performance diesel enginesin Beijing. Moreover, the company launched ComfortGuard, a power unit system for over-the-roadtrucks.

In 2007, Cummins launched Cummins Turbo Diesel, the 6.7-liter turbo diesel engine, used in DodgeRam 2500 and 3500 Heavy Duty pickup trucks, by fulfilling the 2010 Environmental Protection Agency(EPA) nitrogen oxide (NOx) standard. In the same year, the company entered into a joint venturewith A.G. Leventis, to form a new Cummins West Africa operation in Lagos, to build power generators.Subsequently, the company reached an agreement with the Stirling Group to sell universal silencer.Later in the year, the company received an order of diesel engines from Beijing Public TransportHoldings and Hangzhou Public Transport. Subsequently, the company introduced a new 650-hpdiesel engine for luxury motorhomes.

The company entered into a co-operation agreement with Elmarco in 2008, to develop innovativesolutions in nano-fiber media technologies. In the same year, the company and Volvo Trucks NorthAmerica extended the agreement for the availability of the Cummins ISX engine in Volvo VN trucks.Later in the year, Cummins Filtration introduced Fleetguard direct flow air system. Subsequently, italso launched replaceable centrifuge rotor for servicing Spinner II assemblies.

Further in 2008, the company concluded respective joint ventures with two Fiat Group companies,CNH Global (CNH) and Iveco. Under the agreement, Cummins purchased CNH's equity stake inConsolidated Diesel Company and sold its interest in the European Engine Alliance. In addition,Cummins and Westport Innovations' joint venture, Cummins Westport (CWI), and Cummins Indiareceived an order from Delhi Transport for 3,125 natural gas buses equipped with CWI's B Gas Plusengines. During the same period, it also received an order from North American Bus Industries, for260 compressed natural gas CWI ISL G engines for CompoBus buses.

During 2009, the company received a contract from Mowag, to supply 198 ISBe 5.9 litre enginesrated at 250hp (186 kW) to power Eagle IV patrol vehicles for the German army. In the same year,the company launched the QSK60 offshore-drilling power module for the oil and gas market.

Cummins announced a multiyear extension of its current agreement with Chrysler Group, in 2010.Cummins will supply 6.7-liter turbo diesel engines for Ram Heavy Duty pickups and Chassis Cabtrucks while continuing to grow its partnership with Chrysler, which began 21 years ago. In the sameyear, Cummins Filtration and Ashland Consumer Markets announced a new alliance to package,market, and distribute diesel exhaust fluid in North America. Additionally, Cummins signed amemorandum of understanding (MOU) with KAMAZ to negotiate licensing its advanced Euro VI


Cummins Inc.History

emissions technology to ZAO Cummins KAMA, the joint venture Cummins operates with KAMAZ inRussia.

Further in 2010, Cummins expanded its High-Horsepower Technical Center and high-horsepowerengine product line at its manufacturing facility in Seymour. In the same year, Cummins commencedthe production and supply of the first EPA Tier 4 Interim and EU Stage IIIB certified engines andaftertreatment for early installation by off-highway equipment customers. In addition, the companyunveiled the QTR Series Transmission line specifically designed to meet the strenuous requirementsof high-horsepower pressure pumping operations in the oil and gas well-servicing industry. Also in2010, Cummins planned to build a multi-phased manufacturing site at the Aegean Free Trade Zonein Izmir, Turkey. The company planned to build a filtration manufacturing plant and follow with afacility to produce alternators for its power generation business.

In 2011, Cummins Power Generation, a business unit of Cummins, dedicated the production linefor its newest line of mobile power generators for use by the US Army. In the same year, the companysold its exhaust business to Global Tube, a portfolio company of private equity firm Point Partners.In addition, the company started the construction of its $70 million multi-phased manufacturing siteat the Aegean Free Trade Zone in Izmir, Turkey. Later in 2011, Cummins entered into an agreementto sell its light duty filtration operations to Industrial Opportunity Partners (IOP), a private equityinvestment firm based in Evanston, Illinois.

Further in 2011, Cummins and Guangxi LiuGong Machinery announced a joint-venture partnershipto manufacture MidRange engines at a new facility to be built in Liuzhou City, Guangxi Province, insouthern China. Also in 2011, Cummins Emission Solutions, a division of Cummins, announced thatit is in the advanced development stages of a new urea dosing system named the EcoFit UreaDosing System.This new aftertreatment product innovation is designed to meet emission regulationsin China, India, and Russia. Towards the end of 2011, the company announced an investment of$24 million over three years to expand the research and development capabilities at its technicalcenter in North Charleston, South Carolina.

In the end of 2011, Cummins and Mercury Marine announced to move their Cummins MerCruiserDiesel Marine (CMD) joint venture to a strategic supply arrangement to more effectively and efficientlyserve customers in the global diesel marine market.

In February 2012, Cummins and Grupo Laeisz announced a joint-venture partnership to distributeand service Cummins engines, generators, and parts in a region that includes Costa Rica, El Salvadorand Honduras. The new joint venture, to be called Cummins Centroamerica, will be an 80/20 jointventure. In the following month, the company began the development of a 15-liter heavy-duty,spark-ignited natural gas engine. Also in March 2012, Cummins Filtration, a division of Cummins,officially launched its Fleetguard filter recycling management program named Filtering Change. Laterin the month, the company opened a new parts complex in Belgium.

The company announced a significant expansion of its Seymour campus in April 2012 that includesinvesting $219 million in new construction to support the company's global high horsepower enginebusiness. In July 2012, Cummins acquired the emission control assets of Hilite International in


Cummins Inc.History

Marktheidenfeld, Germany. In the same month, the company also acquired an additional 45% interestin Cummins Central Power for consideration of approximately $20 million.

In September 2012, Hyundai Heavy Industries and Cummins announced a 50/50 joint venturepartnership to manufacture MidRange engines in Korea extending for application in a wide rangeof Hyundai construction and industrial equipment.

In October 2012, the company received certification for its ISX15 engine from the US EnvironmentalProtection Agency (EPA) which meets both the EPA 2013 regulations and the new greenhouse gasand fuel-efficiency rules that will take effect in 2014. In the same month, Cummins Westport beganthe development on the ISB6.7 G, a mid-range 6.7 liter natural gas engine. Later in October 2012,Navistar International reached long-term supply agreements for its heavy-duty diesel engines andemissions aftertreatment technologies with Cummins. Through these agreements, the companywould provide Cummins ISX15 for Navistar’s International ProStar, PayStar and 9900 models. Inaddition, Navistar would utilize the Cummins Emission Solutions aftertreatment system for itsproprietary heavy-duty big bore engines.

In March 2013, Eaton and Cummins unveiled a new powertrain package for the North Americanheavy-duty truck market. In the same month, the first Cummins L9.3 engine was rolled out off theproduction line at Guangxi Cummins Engine Company (Guangxi Cummins), the 50:50 joint venturebetween Cummins and LiuGong Machinery, marking the official start of operations in Liuzhou,southern China.

During April 2013, Cummins broke ground for a new plant and office building in Germany for theCompany’s Cummins Marktheidenfeld (CMHF) business. In the same month, Cummins launchedthe QSM12, a 6-cylinder, 12-liter engine for heavy-duty applications.

In June 2013, a combined team of engineers and technicians from Ad Astra Rocket Company andCummins Power Generation, a business unit of Cummins, have successfully powered a Cummins-builtelectrical generator using mixtures of hydrogen and biogas.


Cummins Inc.History

KEY EMPLOYEES

CompensationBoardJob TitleName

13159687 USDExecutive BoardChairman and Chief ExecutiveOfficer

N. Thomas Linebarger

205363 USDNon Executive BoardDirectorRobert J. Bernhard

198363 USDNon Executive BoardDirectorFranklin R. Chang Diaz

197363 USDNon Executive BoardDirectorStephen B. Dobbs

214363 USDNon Executive BoardDirectorRobert K. Herdman

248329 USDNon Executive BoardDirectorAlexis M. Herman

242364 USDNon Executive BoardDirectorWilliam I. Miller

216510 USDNon Executive BoardDirectorGeorgia R. Nelson

209556 USDNon Executive BoardDirectorCarl Ware

5927370 USDSenior ManagementVice President and Chief FinancialOfficer

Patrick J. Ward

Senior ManagementChief Information OfficerSherry Aaholm

4808621 USDSenior ManagementVice President and President,Components Group; andChairman,Cummins India

Anant J. Talaulicar

Senior ManagementVice President and President,Engine Business

Richard J. Freeland

4817469 USDSenior ManagementVice President and President, PowerGeneration

Livingston L. Satterthwaite

Senior ManagementVice President and President,Cummins Distribution Business

Pamela L. Carter

Senior ManagementVice President and Group VicePresident, China and Russia

Steven M. Chapman

Senior ManagementVice President and Chief TechnicalOfficer

John C. Wall

Senior ManagementVice President, Global Supply Chainand Manufacturing

Lisa M.Yoder

Senior ManagementVice President and Chief HumanResource Officer

Jill E. Cook

Senior ManagementVice President and ChiefAdministrative Officer

Marya M. Rose

Senior ManagementVice President and General CounselSharon R. Barner

Senior ManagementVice President, Engineering, Heavy,Medium and Light Duty Products

Jennifer Rumsey


Cummins Inc.Key Employees

CompensationBoardJob TitleName

Senior ManagementExecutive Vice President, CorporateResponsibility and Community

Mark Levett

Relations and Chief ExecutiveOfficer, Cummins Foundation


Cummins Inc.Key Employees

KEY EMPLOYEE BIOGRAPHIES

N.Thomas Linebarger

Board: Executive BoardJob Title: Chairman and Chief Executive OfficerSince: 2012Age: 50

Mr. Linebarger has been the Chairman and Chief Executive Officer at Cummins since 2012.Previously, he served as the President and Chief Operating Officer from 2008 to 2011 after servingas the Executive Vice President and President of Power Generation Business from 2003 to 2008and as the Vice President and Chief Financial Officer from 2000 to 2003. From 1998 to 2000, hewas the Vice President of Supply Chain Management, after holding various other positions withCummins. Mr. Linebarger was a Director at Pactiv from 2005 to 2010 and has been a Director atHarley-Davidson since 2008.

Robert J. Bernhard

Board: Non Executive BoardJob Title: DirectorSince: 2008Age: 60

Mr. Bernhard has been a Non Executive Director at Cummins since 2008. He joined the Universityof Notre Dame in 2007 and prior to that was an Associate Vice President for Research at PurdueUniversity since 2004. He also held Assistant, Associate and full Professor positions at PurdueUniversity, where he remains an Adjunct Professor. Mr. Bernhard was a Director of the Ray W.Herrick Laboratories at Purdue's School of Mechanical Engineering from 1994 to 2005. He is currentlySecretary General of the International Institute of Noise Control Engineering (I-INCE), and is also amember of the Board of Directors of the INCE Foundation.

Franklin R. Chang Diaz


Dr. Chang-Diaz has been a Non Executive Director at Cummins since 2009. He is the Chairmanand Chief Executive Officer at Ad Astra Rocket. Dr. Chang-Diaz founded Ad Astra in 2005 followinghis retirement from NASA after a 25- year. In 1994, Dr. Chang-Diaz founded and directed NASA's


Cummins Inc.Key Employee Biographies

Advanced Space Propulsion Laboratory at the Johnson Space Center where he managed amulticenter research team developing new plasma rocket technology. Dr. Chang-Diaz also servesas an Adjunct Professor of Physics at Rice University and the University of Houston.

Stephen B. Dobbs


Mr. Dobbs has been a Non Executive Director at Cummins since 2010. He presently serves asSenior Group President of Fluor Corporation's Industrial and Infrastructure Group. He has servedFluor in numerous U.S. and international locations including southern Africa, Europe and China.

Robert K. Herdman


Mr. Herdman has been a Non Executive Director at Cummins since 2008. He has been the ManagingDirector at Kalorama Partners since 2004. Prior to joining Kalorama, he was the Chief Accountantat the SEC from 2001 to 2002. Prior to joining the SEC, he was Ernst & Young's Vice Chairman ofProfessional Practice for its Assurance and Advisory Business Services (AABS) practice in theAmericas and the Global Director of AABS Professional Practice for Ernst & Young International.Since 2011, he has been a member of the Board of Directors at WPX Energy. Mr. Herdman hasbeen a member of the Board of Directors at HSBC Finance since 2004.

Alexis M. Herman


Ms. Herman has been a Non Executive Director at Cummins since 2001. She serves as the Chairand Chief Executive Officer at New Ventures since 2001. Ms. Herman also serves as Chair at ToyotaMotor’s North American Diversity Advisory Board. From 1997 to 2001, she served as US Secretaryof Labor. She has also been a Director at The Coca Cola since 2007, Entergy since 2003, and MGMMirage since 2002. In addition, Ms. Herman is a member of the Board of Directors at the ClintonBush Haiti Fund



William I. Miller


Mr. Miller has been a Non Executive Director at Cummins since 1989. In 2011, Mr. Miller was namedthe President at Wallace Foundation. He was the Chairman at Irwin Management from 1990 to 2011.From 1990 to 2009, he was the Chairman and Chief Executive Officer at Irwin Financial. Mr. Milleris also the Chairman of the Board at Tipton Lakes. He is a Director or trustee of the New PerspectiveFund, the New World Fund and EuroPacific Growth Fund.

Georgia R. Nelson


Ms. Nelson has been a Non Executive Director at Cummins since 2004. She became the Presidentand Chief Executive Officer at PTI Resources in 2005. Prior to this role, Ms. Nelson retired in 2005from Edison International, where she had been the President of Midwest Generation EME since1999 and General Manager at Edison Mission Energy Americas since 2002. Previously, she hasserved as a Director at Ball Corporation since 2006 and CH2M Hill since 2010. She was also aDirector at Tower Automotive from 2001 to 2007 and Nicor from 2005 to 2011.

Carl Ware


Mr.Ware has been a Non Executive Director at Cummins since 2004. He retired from The Coca-Colain 2003 as the Executive Vice President of Public Affairs and Administration following a 28-yearcareer holding positions of increasing responsibility. From 1993 to 2000, Mr. Ware served as thePresident and Chief Operating Officer at Coke's Africa Group. He was elected to the Atlanta CityCouncil in 1973 and served as the President at City Council until 1979. From 1970 to 1973, he servedthe Atlanta Housing Authority as a Director of Family and Community Services and a Deputy Directorof Urban Redevelopment. Mr. Ware served as a Director at Chevron since 2001 and as a Directorat Coca-Cola Bottling Co. Consolidated from 2000 to 2010. In addition, he also serves as a Directorat PGA Tour Golf Course Properties.



Patrick J. Ward

Board: Senior ManagementJob Title: Vice President and Chief Financial OfficerSince: 2008Age: 49

Mr. Ward has been the Vice President and Chief Financial Officer at Cummins since 2008. Prior tothat, he was the Vice President and Engine Business Controller from 2006 to 2008. In addition, hewas also the Executive Director and Engine Business Controller from 2005 to 2006. Before that, Mr.Ward served as the Executive Director and Power Generation Business Controller at Cummins from2003 to 2005.

Sherry Aaholm

Board: Senior ManagementJob Title: Chief Information OfficerSince: 2013

Mr. Aaholm has been the Chief Information Officer at Cummins since 2013. Prior to this she wasassociated with FedEx for over 15 years. Most recently, she served as the Executive Vice President,Information Technology, at FedEx.

Anant J.Talaulicar

Board: Senior ManagementJob Title: Vice President and President, Components Group; and Chairman,Cummins IndiaSince: 2010Age: 51

Mr. Talaulicar has been the Vice President and President of Components Group at Cummins since2010. He currently serves as the Managing Director at India ABO since 2004. In addition, he is alsothe Chairman and Managing Director at Cummins India since 2003.

Richard J. Freeland

Board: Senior ManagementJob Title: Vice President and President, Engine BusinessSince: 2010Age: 55

Mr. Freeland has been the Vice President and President of Engine Business at Cummins since2010. Prior to that, he served as the Vice President and President of Components Group from 2008



to 2010. In addition, Mr. Freeland also served as the Vice President and President of WorldwideDistribution Business at Cummins from 2005 to 2008.

Livingston L. Satterthwaite

Board: Senior ManagementJob Title: Vice President and President, Power GenerationSince: 2008Age: 52

Mr. Satterthwaite has been the Vice President and President of Power Generation business atCummins since 2008. He was also the Vice President of Generator Set Business at Cummins from2003 to 2008.

Pamela L. Carter

Board: Senior ManagementJob Title: Vice President and President, Cummins Distribution BusinessSince: 2007Age: 63

Ms. Carter has been the Vice President and President of Distribution Business at Cummins since2007. Prior to that, she was the Vice President and President of Cummins Filtration from 2005 to2007.

Steven M. Chapman

Board: Senior ManagementJob Title: Vice President and Group Vice President, China and RussiaSince: 2009Age: 58

Mr. Chapman has been the Vice President and the Group Vice President for China and Russia atCummins since 2009. He also served as the Vice President of Emerging Markets and Businessesat Cummins from 2005 to 2009.

John C. Wall

Board: Senior ManagementJob Title: Vice President and Chief Technical OfficerSince: 2000Age: 61



Mr. Wall has been the Vice President and Chief Technical Officer at Cummins since 2000.

Lisa M.Yoder

Board: Senior ManagementJob Title: Vice President, Global Supply Chain and ManufacturingSince: 2011Age: 49

Ms.Yoder has been the Vice President of Global Supply Chain and Manufacturing at Cumminssince 2011. Previously, she served as the Vice President of Supply Chain from 2010 to 2011, andas an Executive Director of Supply Chain and Operations for Power Generation at the companyfrom 2007 to 2010.

Jill E. Cook

Board: Senior ManagementJob Title: Vice President and Chief Human Resource OfficerSince: 2003Age: 49

Mr. Cook has been the Vice President and Chief Human Resource Officer at Cummins since 2003.



MAJOR PRODUCTS AND SERVICES

Cummins is engaged in the manufacturing of diesel and natural gas engines as well as engine-related components. The company's key products and services include the following:

Products:

Aftertreatment systems Alternative fuel engines Alternators Commercial power systems Diesel engines Emission systems Exhaust systems Filtration systems Gas turbine power generation High horsepower engines Industrial engines Industrial hydraulic filtration In-tank fuel filtration Marine engines Natural gas engines Turbocharging systemsRemanufactured engines Remanufactured components

Services:

Distribution Maintenance servicesEngineering services

Brands:

Cummins Cummins Onan Stamford AVK Markon


Cummins Inc.Major Products and Services

REVENUE ANALYSIS

Overview

Cummins recorded revenues of $17,334 million during FY2012, a decrease of 4% as compared toFY2011. In FY2012, the US, the company’s largest geographic market, accounted for 46.8% of thetotal revenues.

Cummins generates revenues through four business segments: engine (52.5% of the total revenuesin FY2012), distribution (18.8%), components (16.2%) and power generation (12.5%).

Revenues by segment

During the FY2012, the engine segment recorded revenues of $9,101 million, a decrease of 5.7%as compared to FY2011.

The distribution segment recorded revenues of $3,261 million in FY2012, an increase of 7.9% overFY2011.

The components segment recorded revenues of $2,809 million in FY2012, a decrease of 2.7% ascompared to FY2011.

The power generation segment recorded revenues of $2,163 million in FY2012, a decrease of 13.2%as compared to FY2011.

Revenues by geography

The US, Cummins’ largest geographic market, accounted for 46.8% of the total revenues in theFY2012. Revenues from the US reached $8,107 million in FY2012, an increase of 10.2% overFY2011.

China accounted for 6.1% of the total revenues in the FY2012. Revenues from China reached $1,056million in FY2012, a decrease of 27.3% as compared to FY2011.

Brazil accounted for 4.6% of the total revenues in the FY2012. Revenues from Brazil reached $798million in FY2012, a decrease of 37.9% as compared to FY2011.

India accounted for 4.4% of the total revenues in the FY2012. Revenues from India reached $757million in FY2012, a decrease of 11.9% as compared to FY2011.

Mexico accounted for 4% of the total revenues in the FY2012. Revenues from Mexico reached $692million in FY2012, an increase of 9.7% over FY2011.


Cummins Inc.Revenue Analysis

The UK accounted for 3.8% of the total revenues in the FY2012. Revenues from the UK reached$660 million in FY2012, a decrease of 9.2% as compared to FY2011.

Canada accounted for 3.7% of the total revenues in the FY2012. Revenues from Canada reached$642 million in FY2012, a decrease of 1.7% as compared to FY2011.

Other foreign countries accounted for 26.7% of the total revenues in the FY2012. Revenues fromother foreign countries reached $4,622 million in FY2012, a decrease of 9.1% as compared toFY2011.


Cummins Inc.Revenue Analysis

SWOT ANALYSIS

Cummins is engaged in the manufacturing of diesel and natural gas engines as well as engine-relatedcomponents. A robust global distribution network complements the company’s operations andsupports in enhancing its market share. However, weak global economic recovery could negativelyimpact demand for the company’s products which in turn may pressurize its growth and earnings.

WeaknessesStrengths

Heavy dependence on few suppliersRobust global distribution networkComprehensive products and servicesGlobally diversified operations and largecustomer base

ThreatsOpportunities

Weak global economic recoveryGrowing demand for emission controlproducts Intense competitionIncreasing global demand for diesel engines Environmental compliancesRevival of global automobiles industry

Strengths

Robust global distribution network

Cummins serves its end-users at approximately 400 locations in approximately 80 distributionterritories through its robust distribution network. The company-owned distributors are located inkey markets, including North America, Australia, Europe, the Middle East, India, China, Africa,Russia, Japan, Brazil, Singapore and Central America. Its joint venture distributors are located inNorth America, South America, Africa, China, Thailand, Singapore and Vietnam.

The distribution channel in North America includes 11 unconsolidated partially-owned distributors.North and Central America are comprised of a network of partially-owned distributors. Internationally,its network consists of independent, partially-owned and wholly-owned distributors. Through thesenetworks, the company provides parts and service to its customers. These full-service solutionsinclude maintenance contracts, engineering services and integrated products, where the companycustomizes its products to cater to specific needs of end-users. Cummins’ distributors also serveand develop dealers, predominantly OEM dealers, in their territories by providing new products,technical support, tools, training, parts and product information.


Cummins Inc.SWOT Analysis

Moreover, the company’s distribution network reaches a highly diverse customer base withapproximately 45% of its 2012 sales being generated from new engines and power generationequipment, with its remaining sales generated by parts and filtration and service revenue. Hence,robust global distribution network complements the company’s operations and supports in enhancingits market share.

Comprehensive products and services

Cummins offers a wide range of products and services to its customers. The company operatesthrough four business segments: engine, distribution, components and power generation. Thesesegments are organized according to the products and markets each segment serves and allowsmanagement to focus its efforts on providing enhanced service to a wide range of customers.

The engine segment produces engines and parts for sale to customers in on-highway and variousindustrial markets. The engines are used in trucks of all sizes, buses, and recreational vehicles, aswell as various industrial applications including construction, mining, agriculture, marine, oil and gas,rail, and military.The components segment sells filtration products, exhaust aftertreatment systems,turbochargers, and fuel systems.The distribution segment includes wholly-owned and partially-owneddistributorships engaged in wholesaling engines, generator sets, and service parts, as well asperforming service and repair activities on its products and maintaining relationships with variousOEMs throughout the world. Similarly, the power generation segment is an integrated provider ofpower systems which sells engines, generator sets and alternators.

Thus, comprehensive products and services reduce Cummins business risks and provide crossselling opportunities. In addition, it enables the company to tap opportunities in new as well asexisting markets.

Globally diversified operations and large customer base

Cummins has worldwide operations, including technical centers, manufacturing operations anddistribution networks.These geographically spread business connections provide the company withnumerous opportunities for low-cost sourcing and profitable growth in new markets. The companyserves its customers through a network of approximately 600 company owned and independentdistributor locations and approximately 6,500 dealer locations in more than 190 countries andterritories with major presence in the US, China, Brazil, India, Mexico, the UK and Canada.

Along with the globally diversified operational bases the company has large customer base. Forinstance, the principal customers of the company’s heavy and medium-duty truck engines includetruck manufacturers such as PACCAR, Daimler Trucks North America, Ford Motor, InternationalTruck, MAN Latin America and Volvo. It also sells industrial engines to manufacturers of construction,agricultural and marine equipment, including Komatsu, Belaz, Hyundai, Hitachi and JLG.The principalcustomers of the company’s light-duty on-highway engines are Chrysler and manufacturers of RVs(recreational vehicle).



Hence, a globally diversified operation and large customer base helps the company in mitigatingrisk associated with the regional supply and demand fluctuations for its products and services. Thisin turn helps the company deliver sustainable business performance.

Weaknesses

Heavy dependence on few suppliers

Cummins is engaged in long term contracts with few suppliers for obtaining raw materials andmanufactured components. Around 60% to 70% of the company's total types of parts in its productdesigns were sourced from a single supplier in FY2012. Sometimes, the company faces delay inprocuring the raw materials from its supplier as a result of a number of factors affecting the supplierssuch as capacity constraints, labor disputes, impaired financial condition of a particular supplier,suppliers' allocations to other purchasers, and weather emergencies. Thus, any delay in receivingsupplies could impair the ability of the company to deliver products to its customers and accordinglyit could have a material adverse effect on its business and operations.

Opportunities

Growing demand for emission control products

The prominence of emission control catalysts has been increasing as environmental concerns andmeasures to fight pollution have become vital globally. As a result, Cummins is currently experiencinggrowing demand from its customers as an increasing number of regions adopt tougher emissionsstandards.

According to industry estimates, the global catalyst market is expected to grow at around 10%annually over the next five years. The global emission control catalyst market for automobile sectoris forecast to grow at an average annual rate of almost 10.8% to 2015. The major segment is thecatalyst market for light-duty vehicles.The driving factors for growth include tightening of regulationsin the US, the European Union and Japan, as well as the introduction of emission standards forheavy-duty diesel vehicles in China, India, Russia, the Republic of Korea and Brazil in the recentpast.

To capitalize on the huge potential in the growing emissions controls market, in April 2013, Cumminsbroke ground for a new plant and office building for its Cummins Marktheidenfeld (CMHF) business.The new facility will design and manufacture selective catalytic reduction (SCR) dosing systems, acritical part of the emissions controls for diesel engines. This new plant would position the companyto meet the growing needs of customers throughout Europe and the world. Thus, growing demandfor emission control products would enable the company to cater to the wide customer base. Thisin turn would further enhance Cummins’ market presence and help drive its business growth.



Increasing global demand for diesel engines

Demand for diesel engines and related products are forecast to rise in the future. The factorsinfluencing the demand for diesel engines include rebounding consumer confidence and looseningcredit standards as well as increasing gasoline prices.These factors will encourage truck fleet ownersand managers to purchase new vehicles, virtually all of which are outfitted with diesel engines.According to the industry experts, the global demand for diesel engines is projected to grow 6.7%yearly to 2015 to $197.3 billion.

China and India will be the key drivers for growth in Asia through 2015, as expanding output of motorvehicles and off-highway equipment combine with higher levels of fixed investment to stimulatesignificant increases in diesel engine demand.The sales of diesel engines in Asia Pacific region areexpected to grow approximately 7.6% per year through 2015, with China alone accounting forone-third of the rise in global demand between 2010 and 2015. The medium and heavy vehiclediesel engine segment is also expected to experience the greatest gains in this regional market indollar terms, accounting for 53% of total sales in 2015.

Demand for diesel engines in the Africa and Mideast region is also expected to expand 7.3% peryear through 2015, fueled by rising output of medium and heavy vehicles and off-highway equipment,in addition to climbing fixed investment. The Eastern Europe and Central and South America dieselengine markets will also grow at healthy rates from 2010 to 2015, supported by growth in motorvehicle production, fixed investment, and agricultural, construction, and mining machinery output.In addition, demand for diesel engines in North America and Western Europe is also expected togrow with renewed strength following a period of weakness, bolstered by rebounds in production ofmotor vehicles and off-highway equipment.

Cummins designs, manufactures, distributes, and services a wide range of diesel engines andmarkets them around the world. Therefore, growing diesel engine market represents an opportunityfor Cummins to capitalize on this market and to expand its revenues and profits.

Revival of global automobiles industry

The global automotive industry was severely affected by the economic downturn, with a decline inrevenues being recorded in 2008 and 2009. However, 2011 saw a strong rebound which has continuedinto 2012. According to MarketLine (a unit of Informa plc), the global automotive manufacturingindustry grew by 8.9% in 2012 to reach a value of $1,563.9 billion.The cars segment was the largestsegment of the global automotive manufacturing industry, accounting for 55.9% of the industry'stotal value.

The performance of the industry is forecast to accelerate, with an anticipated compound annualgrowth rate (CAGR) of 6.7% for the four-year period 2012-16, which is expected to drive the industryto a value of $2,025.4 billion by the end of 2016.Thus, a growing automobile market is likely to drivedemand for Cummins' products.The company is well positioned to tap the opportunities arising fromthese growing automotive markets.



Threats

Weak global economic recovery

Cummins could face challenges arising from continued weak economic data in a number of regionsand increasing levels of uncertainty regarding the direction of the global economy. The politicaldecisions in the US regarding federal tax and budget issues could continue to create economicuncertainty that may limit capital investments and negatively impact the overall North Americaneconomy in the first half of 2013. In addition, demand for the company’s products in certain Europeanmarkets could continue to decline due to economic uncertainty in the region.The company generatedapproximately 8% of its net sales from Euro zone countries in 2012.

Emerging economies like China and India are also currently facing downward pressure on theireconomies. China's PMI (purchasing managers’ index) fell in April 2013 to 50.6 from 50.9 in March2013.This signals a fragile growth recovery of the Chinese economy as external demand deterioratesand buildup of high inventory levels due to weak demand. Similarly, India's factory sector lost furthermomentum in March 2013 as output growth slipped to its weakest level in more than four years andits PMI fell to 52 from 54.2 in February 2013. Hence, weak global economic recovery could negativelyimpact demand for the company’s products which in turn may pressurize its growth and earnings.

Intense competition

The markets in which Cummins operate are highly competitive. The company competes worldwidewith a number of other manufacturers and distributors that produce and sell similar products. Itsproducts primarily compete on the basis of price, performance, fuel economy, speed of delivery,quality, customer support and price. In the markets served by Cummins engine segment, it competeswith independent engine manufacturers as well as OEMs who manufacture engines for their ownproducts. Its primary competitors in North America are International Truck and Engine Corporation(Engine Division), Detroit Diesel, Caterpillar and Volvo Powertrain. Other engine manufacturers ininternational markets include Weichai Power, MAN AG, Fiat Power Systems, GE Jenbacher, Tognum,Volvo, Yanmar, GuangxiYuchai Group and Deutz.

The power generation segment of Cummins competes with a variety of engine manufacturers andgenerator set assemblers across the world. Caterpillar, Tognum, and Mitsubishi Heavy Industriesremain its primary competitors. It also competes with FG Wilson (Caterpillar group), Kohler, Generac,and numerous regional generator set assemblers including Emerson Electric, Marathon Electric andMeccalte, among others. The company's components segment competes with other manufacturersof filtration, exhaust and fuel systems and turbochargers. Primary competitors of components segmentinclude Donaldson, Clarcor, Mann+Hummel Group, Honeywell International, Borg-Warner, RobertBosch, Tenneco, Eberspacher Holding and Denso. The company's distributors compete withdistributors or dealers that offer similar products.



Thus, intense competition across all the business divisions of the company could force it to reduceprices, which may in turn affect the bargaining power of Cummins and strain its margins.

Environmental compliances

The company's engines are subject to extensive statutory and regulatory requirements governingemissions and noise. These include standards imposed by the EPA, the European Union, stateregulatory agencies, such as the California Air Resources Board (CARB), and other regulatoryagencies around the world. Cummins has made, and will be required to continue to make, significantcapital and research expenditures to comply with these regulatory standards. Developing enginesto meet changing government regulatory requirements, with different implementation timelines andemissions requirements, makes developing engines efficiently for multiple markets complicated andcould result in substantial additional costs that may be difficult to recover in certain markets.

The company’s ability to comply with these and future emission standards is an essential elementin maintaining its leadership position in regulated markets. Further, the successful development andintroduction of new and enhanced products in order to comply with new regulatory requirements aresubject to other risks, such as delays in product development, cost over-runs, and unanticipatedtechnical and manufacturing difficulties. Thus, failure to comply with these standards could result inadverse effects on the company’s future financial results.



TOP COMPETITORS

The following companies are the major competitors of Cummins Inc.

Caterpillar, Inc.DEUTZ AGYanmar Co LtdFiat Power SystemsFord Motor CompanyGE JenbacherGuangxiYuchai GroupHino PowerInternational Truck and Engine CorporationMAN Nutzfahrzeuge AGTognum AGVolvo


Cummins Inc.Top Competitors

COMPANY VIEW

A statement by N. Thomas Linebarger, Chairman and Chief Executive Officer at Cummins is givenbelow. The statement has been taken from the company's website.

To Our Shareholders

Thanks to the work of our employees around the world, 2012 proved to be a solid year in terms offinancial performance despite challenging global economic conditions, especially in the second halfof the year. Even in difficult times, our employees’ agility, dedication and ability to work in globalcollaborative teams ensured that the Company had our second best year for financial performancein the face of weakening demand in most major geographies and end markets.

2012 financial performance

In 2012, sales of $17.3 billion were down 4 percent from 2011. Earnings before interest and taxes(EBIT), excluding special items, was $2.35 billion or 13.6 percent of sales, compared to $2.56 billion,or 14.2 percent of sales, in 2011. Net income attributable to Cummins Inc. was $1.65 billion, comparedto $1.85 billion in 2011. Cash from operations totaled $1.53 billion compared to $2.1 billion in 2011.

Providing shareholder value

The Company continued its focus on providing shareholder value by increasing our investments inprojects that will produce profitable growth in the future by maintaining strong profit margins evenin difficult market conditions and by raising the dividend by 25 percent. In addition, the Companycontinued to execute the share repurchase program authorized in February 2011 and has completed$774 million of the existing $1 billion share repurchase program as of December 31, 2012. TheBoard of Directors authorized an additional repurchase program of $1 billion to commence uponcompletion of the existing program. These actions are indicative of the Company’s strong balancesheet, financial discipline and management’s confidence in the Company’s future growth prospects.In recognition of the Company’s financial strength, Fitch’s Rating Agency upgraded Cummins’long-term debt ratings from “A-” to “A” with a stable outlook.

Responding to conditions while ensuring our long term success

We responded to the declining market conditions in 2012 with a number of actions that reducedcosts and ensured that we delivered strong profit margins and cash flow, including: reducingdiscretionary spending; completing enterprise-wide restructuring actions; reducing inventory whereappropriate; and delivering supply chain improvements, which will help our Company realize costsavings, improve efficiency and ultimately best serve our customers.

Investing in future growth


Cummins Inc.Company View

To secure our long term success, we continued in 2012 to invest at record levels in key growthprograms that we expect will contribute significantly to our profitable growth in the future, such as:a number of new engine and component products to meet future emission standards and drivegreater fuel efficiency; an expanded distribution footprint to drive growth and better serve customersin key markets like China, Africa and Latin America; and important global partnerships andrelationships including a new engine joint venture in South Korea in our Engine Business, theacquisition of the emissions control assets of Hilite International in our Components Business, andthe ground breaking at our Guangxi Cummins Industrial Power joint venture partnership facility inChina.

We also continued to lead in innovation last year to make us better, faster and first when: Weannounced that our U.S. on-highway products would meet greenhouse gas regulations one yearahead of the EPA deadline; Our Power Generation products received EPA Tier 4 interim certificationfor the North American market three years ahead of deadline; and We launched new fuel filtrationsystems with Cummins proprietary Nanotechnology media allowing our engines and generator setsto operate effectively in harsh environments.

Living our corporate values

At Cummins, even during difficult times, we continued to live our corporate values every day includingour corporate responsibility work where we seek to serve and improve the communities in which welive, as well as other corporate values such as diversity. Specifically in 2012:

Cummins employees logged more than 221,000 Every Employee, Every Community volunteer hoursglobally, the highest number on record and a 69 percent increase year-over-year;

We continued strategic initiatives such as TEC: Technical Education for Communities, which aimsto increase access to good jobs through industry-relevant skills training, leading to a stronger andgrowing employment base in our communities;

We have grown our rural electrification program, known as Power to Prosper. Power to Prosper ishelping to bring income-generating power to underserved rural communities in India; and

We have expanded the Cummins Environmental Challenge to further harness the skills and interestsof our employees to benefit the environment. In 2012, more than 12,000 employees from 19 countriesworked on a total of 109 Environmental Challenge projects. Through 80,000 hours volunteered,these projects resulted in the reduction of more than 4,300 tons of greenhouse gas, the planting ofmore than 5,000 trees and the removal of more than 25,000 tons of trash.

Newsweek acknowledged our deep commitment to the environment and sustainability by rankingus first among industrial companies in their 2012 Green Rankings. More information about how weare working to improve the environments in which we live is available in the Cummins SustainabilityReport or online at www.cummins.com/sustainability.



For the fifth consecutive year, Cummins was named one of the world’s most ethical companies byThe Ethisphere Institute.

For the sixth consecutive year, Cummins was ranked as one of the Top Companies for Diversity byDiversity, Inc.

Our Company has a lot to be proud of in 2012. Even during difficult times, our employees workedto meet customer commitments, executed on our key initiatives and projects and remained true toour company values, putting us in a terrific position for future success and growth. It is an honor andprivilege to lead the team at Cummins and I am thankful to all the employees, customers, shareholdersand partners who make our Company’s success possible.



LOCATIONS AND SUBSIDIARIESHead Office

Cummins Inc.500 Jackson StreetColumbusIndiana 47202 3005USAP:1 812 377 5000http://www.cummins.com

Other Locations and Subsidiaries

Cummins Asia Pacific Pte. Ltd.Cummins Beijing Co. Ltd.SGPBeijing

CHN

Cummins Canada LimitedCummins Fuel SystemsCANCiudad Juarez

MEX

Cummins Filtration GmbHCMB Technologies Pty. Ltd.DEUAdelaide

AUS

Cummins Italia S.P.A.Cummins India Ltd. - CorporateHeadquarters ITAKothrudPune 411 038BRA

Cummins PowerRent Comercio e Locacao,Ltda.

OOO CumminsRUS

BRA


Cummins Inc.Locations and Subsidiaries

MARKETLINE | 119 FARRINGDON ROAD | LONDON, UNITED KINGDOM, EC1R 3DAT: +44 161 238 4040 | F: +44 870 134 4371 | E: [email protected] | W: www.marketline.com

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