Sustainable Performance in Global On-Highway Markets

Mid America Truck ShowMarch 22, 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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Welcome and Introductions

David Geraghty – Commercial Vehicle Engine BusinessDan Davis – Emission Solutions – Global OEM BusinessRich Eikill – Consumer Business, Power GenerationShawn Wasson – Auxiliary Power Unit Business, Power Generation

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Diversified Global Power Leader

Four Complementary Businesses

Engines PowerGeneration

Components Distribution

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Creating Greater Shareholder Value

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46% Average Annual

Total Shareholder Return

Over last 4 years

CMI S&P 500 Peer Avg.

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Cummins is a Long-Term Player in Global On-Highway Markets

We have fundamentally changed our business model

Customers recognize Cummins for our technology leadership and dependability

We are investing in the next generation of profitable growth opportunities in global automotive markets

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Aggressively Pursuing Cost Leadership

Six Sigma

Technical productivity

Global sourcing

Lean manufacturing$3,435 $3,582

$5,424

$6,657

$7,511

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

2002 2003 2004 2005 2006

Segm

ent N

et S

ales

($M

)

$0

$100

$200

$300

$400

$500

$600

$700

$800

Segm

ent E

BIT

($M

)

Segment Net Sales Segment EBIT

Engine Segment

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Virtual Integration with OEM Partners

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Growing Share with OEM Partners

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Delivering Great End-Customer Value

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Vehicle, engine and aftertreatment . . . a single system designed to optimize performance, reliability, cost and emissions

System Integration is Critical

Controls Integration

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Investing in Global Light Duty Diesel

6000 – 8500 lb GVW >8500 lb GVW

Light Truck (includes PU trucks, SUVs and Vans)

<6000 lb GVW

6.6 M 0.85 M2.9 M

0% Diesel 67% Diesel

North America

0.85 M11.7 M

10% Diesel 67% Diesel

Worldwide

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Investing in Emerging On-highway Markets

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Company-owned

Joint Venture

Independent

Investing in Our Distribution Channel

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Cummins Emission Solutions

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Components Segment

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

SpecialtyFiltration

6%Air IntakeSystems

11% Turbocharger27%

FuelSystems

17%Engine

Filtration21%

AcousticExhaust

12%

CatalyticExhaust

6%

2006 Segment DataSales: $2.3 billionEBIT: $107 millionEBIT Margin: 4.7% (Target: 7-9%)

2006 Revenue by Product

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Fuel Systems

Electronic Controls

Air Handling Systems

Filtration and Aftertreatment

Combustion Technologies

Unique Technology Integration

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Why Cummins Emission Solutions exists

0 1 2 3 4 50.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.10

NOx [g/bhp-hr]

Par

ticu

late

s [g

/bh

p-h

r]

0.11

Limits of In-Cylinder PM

US98US02 Tier III

Limits ofIn-Cylinder

NOx

US07/US10/Tier 4

EURO-IVEURO-V

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NOx Adsorber Catalyst

Periodic Fuel InjectionNOx AdsorberActive Particulate Filter

NOx Control Using Urea SCRUrea (NH3)

Soot

Ash

Soot

Ash

The Right Technology Matters

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Three Product Segments in Aftertreatment Market

Packaging (canning)Components (e.g. dosing systems, controls)System Integration– Single point of contact for an OEM– Responsible for the entire aftertreatment

system (catalyst, dosing units, controls, packaging)

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Cummins Emission Solutions Technology Creates On-Highway MD/HD Truck Market Leadership Position

EPA 2007 Market Share

CES35%

C27%

B22%

A12%

D5%

Euro 4 Market Share

CES27%

A19%

B15%

C10%

D10%

3 Others19%

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Evolving global emission standards creates growth opportunities

Global Market Size for On-highway Commercial Vehicle Diesel Catalytic

Exhaust ($B)$0 $1 $2 $3 $4 $5 $6

2006

2010

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Cummins Power Generation Auxiliary Power Units

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Power Generation Segment

Commercial56%

Alternators19%

Rental2%

Consumer13%

PowerElectronics

6%Energy

Solutions4%

2006 Revenue by ProductTurnaround completeStrengthening marketsExpanding market shareConsumer growth opportunitiesGrowing project business capability

2006 Segment DataSales: $2.4 billionEBIT: $220 millionEBIT Margin: 9.1% (Target: 7-9%)

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Commercial Mobile

Consumer Products Adjacencies

TruckOEMs

RVOEMs

Consumers ProfessionalsHome

Standby

Recreational Vehicles

Aux. Power Unit

Portables

Trailers

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ComfortGuard APU System

Integrated system which eliminates the need to idle the main vehicle engineReduces fuel consumption up to 80%Payback period of 1-2 years for HD TrucksUtilize 5.5 kw Diesel platform used in all Consumer markets– Proven Design– Minimal Investment– Fast to Market

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Positioned for Growth in APU Market

0

10

20

30

40

50

60

2003 2005 2007E

Uni

ts (T

hous

ands

)

Strong and respected brandIndustry leading support networkRespected relationships with Owner Operators, large fleets, and OEMsLeveraging Cummins Power Generation experience in mobile power applications

APU Market Size

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Cummins is a Long-Term Player in Global On-Highway Markets

We have fundamentally changed our business model

Customers recognize Cummins for our technology leadership and dependability

We are investing in the next generation of profitable growth opportunities in global automotive markets

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Appendix

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Cummins Inc.

2006 – Outstanding YearRecord revenue and EBIT for the company and each operating segmentRecord net incomeRecord cash flow from operations for the year

ComponentsSegment 17%

EngineSegment 55%

Power GenSegment 18%

DistributionSegment 10%

2006 DataSales: $11.4 billionEBIT: $1,179 millionEBIT Margin: 10.4% (Target: 7-10%)

2006 Revenue by Segment

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Cummins Inc.

Mexico/Latin America

8%

Africa/Middle East5%Canada

7%

United States50%

Asia/Australia16%

Europe/CIS14%

2006 Revenue by Marketing TerritoryInternational revenue is 50% of consolidated revenuePre-emission demand has accelerated US growth rateMost international areas growing at double digit rate

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Cummins – Historical Performance

$139$181

$543

$907

$1,179

0

200

400

600

800

1000

1200

1400

2002 2003 2004 2005 2006

$ M

illon

s

$5,853$6,296

$8,438

$9,918

$11,362

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2002 2003 2004 2005 2006

$ M

illon

s

Sales EBIT

34

Engine Segment

Emission regulations create opportunitiesAftermarket revenue creates stable earningsEmerging marketsStrategic OEM partnerships

HighHorsepower

(19-91L) 14%

Midrange(3-9L) 37%

Heavy-Duty(10-15L) 29%

Parts andService 20%

2006 Segment DataSales: $7.5 billionEBIT: $733 millionEBIT Margin: 9.8% (Target: 7-10%)

2006 Revenue by Product

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Engine Segment

Heavy-duty Truck demand remains strongShare gains in Medium-duty Truck & BusOff-highway markets supported by non-residential construction and commodity markets

Light-duty Automotive & RV 17%

Heavy-dutytruck 33%

Medium-dutyTruck & bus 13%

StationaryPower 10%

Construction& Ag 15%

Mining/RailGovt/O&G

Marine 12%

2006 Revenue by Market Application

2006 Segment DataSales: $7.5 billionEBIT: $733 millionEBIT Margin: 9.8% (Target: 7-10%)

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Engines – Historical Performance

$37$62

$328

$582

$733

0

100

200

300

400

500

600

700

800

2002 2003 2004 2005 2006

$ M

$3,435 $3,582

$5,424

$6,657

$7,511

0

1000

2000

3000

4000

5000

6000

7000

8000

2002 2003 2004 2005 2006

$ M

Sales Segment EBIT

37

Power Generation Segment

Commercial56%

Alternators19%

Rental2%

Consumer13%

PowerElectronics

6%Energy

Solutions4%

2006 Revenue by ProductTurnaround completeStrengthening marketsExpanding market shareConsumer growth opportunitiesGrowing project business capability

2006 Segment DataSales: $2.4 billionEBIT: $220 millionEBIT Margin: 9.1% (Target: 7-9%)

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Power Generation – Historical Performance

($25) ($19)

$60

$145

$220

-50

0

50

100

150

200

250

2002 2003 2004 2005 2006

$ M

$1,226$1,329

$1,842$1,999

$2,416

0

500

1000

1500

2000

2500

3000

2002 2003 2004 2005 2006

$ M

Sales Segment EBIT

39

Components Segment

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

SpecialtyFiltration

6%Air IntakeSystems

11% Turbocharger27%

FuelSystems

17%Engine

Filtration21%

AcousticExhaust

12%

CatalyticExhaust

6%

2006 Segment DataSales: $2.3 billionEBIT: $107 millionEBIT Margin: 4.7% (Target: 7-9%)

2006 Revenue by Product

40

Components – Historical Performance

$94$86 $84

$89

$107

0

20

40

60

80

100

120

2002 2003 2004 2005 2006

$ M

$951

$1,292

$1,783

$2,000

$2,281

0

500

1000

1500

2000

2500

2002 2003 2004 2005 2006

$ M

Sales Segment EBIT

41

Distribution Segment

Broadening product offeringExpanding global coverageIncreasing equity ownershipExcelling in customer support Parts,

Filters, &Consumables

38%

Service18%

Engines20%

PowerGeneration

24%

2006 Revenue by Product

2006 Segment DataSales: $1.4 billionEBIT: $144 millionEBIT Margin: 10.4% (Target: 8-10%)

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Distribution – Historical Performance

$33

$51

$79

$107

$144

0

20

40

60

80

100

120

140

160

2002 2003 2004 2005 2006

$ M

$574$669

$973

$1,191

$1,385

0

200

400

600

800

1000

1200

1400

1600

2002 2003 2004 2005 2006

$ M

Sales Segment EBIT