2. Agenda
Welcome
8:00 a.m. to 9:45 a.m. – Presentations / Q and A
9:45 a.m. to 10:00 a.m. – Break
10:00 a.m. to 12:00 p.m. – Presentations / Q and A
12:00 p.m. to 12:45 p.m. – Lunch / exhibits
12:45 p.m. to 3:00 p.m. – Turbocharger plant tour
1
3. 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 3 of our 2007 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.
2
5. Presenters
Rich Freeland
- President, Components
Jim Lyons
- Vice President & President, Cummins Turbo Technologies
Ray Amlung
- Vice President & General Manager, Cummins Fuel Systems
Joseph Saoud
- Vice President & President, Cummins Filtration
Srikanth Padmanabhan
- Vice President & General Manager, Cummins Emissions Solutions
4
6. Components Overview
Who we are
Purpose
Growth drivers
Technology leadership
Improving financials
5
7. Who we are
Four distinct business units
Cummins Turbo Technologies
Cummins Fuel Systems
Cummins Filtration
Cummins Emission Solutions
6
8. Purpose
Differentiate Cummins engines
Revenue growth
Earnings growth opportunity
Technology leadership
Large captive customer – provides scale
Long aftermarket annuity
Synergies between Components business
7
9. Components Segment
Business Unit Revenue
Q308 LTM - $3.2B 2011 - $6.0B
Filtration
Turbos
Turbos
28%
31%
Filtration 33%
38%
Fuel Systems
Fuel Systems
9%
14%
Emission Emission
Solutions 17% Solutions 30%
8
11. Components Revenue
by Marketing Territory
Q308 LTM 2011
Other AsiaPac 2%
Other AsiaPac 6% India 2%
India 2%
China 12%
China 5%
EMEA
17%
EMEA
26%
Latin
America 5%
Latin N America
N America
America 4% 62%
57%
10
13. Long-term Trends
Tougher global emission standards
Demand for fuel efficiency
12
14. Tougher Global Emission Standards
Off-
highway
2011-14
Europe
2009 China
US /
2011
Canada
2010
Australia
2008
India
Mexico Brazil
2010
2008 2009
13
15. Components Segment
Sales EBIT
$600
$7,000
$540
GR R
$6,000
AG
$6,000
CA
$500
C
3% 5%
$5,000
2 3
$400
$ Millons
$ Millons
$4,000
$3,253 $300
$3,000 $222
$200
$2,000
$2,000
$89
$100
$1,000
$0 $0
2005 Q308 2011 2005 Q308 2011
LTM LTM
14
17. Summary
Components group is well positioned to grow
Technology leadership creates a significant
advantage
Demonstrating progress toward 9% EBIT target
16
24. Competitive Advantages
Focused on commercial diesel applications
Cummins is only turbo manufacturer
with in-house engine division
23
25. Advantage of Technology Leadership
Industry-leading Variable Geometry Turbo
Thermal management
Exhaust Gas Recirculation control
Exhaust braking
Modulating Two-stage for Light Duty Applications
Enables emissions to be met
Good transient response/driveability
Controls IP
Integrated packaging to minimize space claim
24
26. Reward for Technology Leadership
Gaining Market Share
Benefiting from Cummins engine share gains
Leveraging Cummins relationships globally
Demonstrated capability to develop technology
for multiple OEMs
CTT projecting revenue growth of 25% through 2011
compared to global turbo market size growth of 8%
25
27. Financial Performance Improving
Focus on operational efficiency
Productivity gains
Cost reduction
Increasing capacity and output in low cost regions
Global sourcing
Pricing improvements for value
of technology leadership
26
28. Financial Performance Improving
Growth in OE business over last 4 years
is delivering aftermarket growth
Leveraging global distribution network
to maximize aftermarket opportunity
Well positioned in emerging markets
27
29. Summary
Exciting growth opportunities
Industry leading technology
Improving operating margins
28
31. Overview
Who we are
Fuel Systems technology
Growth drivers
Growth opportunities
Earnings growth
30
32. Fuel Systems Business
Design, develop, manufacture and remanufacture
leading-edge fuel systems
Partner with Scania
JV’s for the HPI and XPI fuel systems
Sharing of development and capital expenses
Currently limiting XPI sales
to Cummins and Scania
31
33. Cummins Fuel Systems
Sales Trends By Marketing Territory
$0.6
0.5
China
$0.5
Latin America 3%
0.45
2%
0.4 0.4
$0.4 EMEA
16%
0.3
$B
$0.3
$0.2
$0.1
N. America
$0.0
79%
2005 2006 2007 Q3'08 2011
LTM
32
34. Fuel System Types
Unit Injector Common Rail System
System
Injector
Injector
High Pressure Fuel Pump Common Rail
Fuel Pump
33
35. Fuel System Technology
Fuel system capability is a key for current and
future emission standards
Injection pressure is the key feature
Cummins Fuel Systems provides the highest
injection pressure available in the industry today
34
37. Growth Drivers
Global adoption of tougher emission standards
Focus on fuel economy improvements
Trend for bigger truck engines in
developing countries
Technical complexity of modern fuel systems
which drives higher share in the aftermarket
36
38. Growth Opportunities
Cummins growth
• Mid-range and heavy-duty growth in China
• Expanding down into Cummins mid-range engines
Continued growth of remanufactured
fuel systems
Sales to additional U.S. and European
engine manufacturers
37
39. Earnings Growth
Operations efficiency
Material cost reduction
Fixed cost reduction as transition to XPI
is completed
Continued growth of high margin
aftermarket business
38
40. Summary
Industry leading technology
Significant growth occurring in XPI JV
Consistently improving operating margins
39
43. Overview
Who we are
Growth drivers
Sustainable earnings growth
Summary
42
44. Leading Technologies in Emissions
Insulated Tubes
Soot
Air Systems
ULSD Fuels
Low Ash Oils
High Pressure
Fuel System Filter Crankcase
Coolant Systems Biodiesel
43
45. Cummins Filtration Global Locations
160 Countries
160 Countries
5,600 Employees
5,600 Employees
21 Manufacturing Facilities
21 Manufacturing Facilities
14 Distribution Centers
14 Distribution Centers
3 Technology Centers
3 Technology Centers
30,000+ Points of Sale
30,000+ Points of Sale
Office Location Distribution Center Sales Office Manufacturing Facility Joint Venture
44
46. Cummins Filtration
Sales Trends By Marketing Territory
$1.8 1.7 Other AsiaPac
13%
$1.6 China
India 1% N America
$1.4
1% 55%
1.2
$1.2 Latin
1.1
America
1.0 1.0
$1.0 12%
$B
$0.8
$0.6
$0.4
EMEA
$0.2 22%
$0.0
2005 2006 2007 Q3'08 2011 Q308 LTM
LTM
= non-strategic businesses exited
45
47. Bridging the Revenue Growth
$1.9
1.7
$1.7
$1.5
$1.3 1.2
$B
$1.1
$0.9
$0.7
$0.5
2008 LTM New Products Global Inflation 2011
and Platforms Aftermarket
Growth
46
48. Growth through New Products
and New Engine Platforms
New Products
As a result of tougher emissions standards
• Added content
• Added value
Focus on air filtration
New engine platforms
47
49. Growth through Aftermarket
Growth of OE First Fit leads to sustainable
aftermarket growth
Patented technology leads to sustainable
aftermarket growth
Focus on Emerging Markets
World class delivery and customer support
48
51. Summary
Cummins Filtration is well positioned for growth
New technologies, engine integration and the
aftermarket will sustain earnings growth
Relentless focus on being low cost producer
50
56. Emission Solutions
Sales Trends By Marketing Territory
$2.0
1.80 Asia Pac
$1.8 1%
$1.6
Europe N America
$1.4 28% 71%
$1.2
$B
$1.0
$0.8
0.55
$0.6
0.45
$0.4
0.15
$0.2 0.10
$0.0
2005 2006 2007 Q3'08 2011
LTM
55
57. Creating Sustainable
Earnings Growth
Cummins Emission Solutions is well-positioned
to capture long-term growth trends
Technology leadership creates
a significant advantage
Improving operating margins
56
58. Long-term Growth Trends
Global adoption of tougher emission standards
New markets (Emerging markets)
New applications (off highway)
More content (DPF + SCR)
Focus on fuel economy improvements
Delivering very high levels of NOx reduction
Reducing system back pressure (dP) significantly
Reducing regeneration fuel consumption
57
59. Tougher Emission Standards
Off-
highway
2011-14
Europe
2009 China
US /
2011
Canada
2010
Australia
2008
Brazil India
Mexico
2009- 2010
2008
2011
58
60. Function of Aftertreatment
Emissions reduction
Particulate matter – soot and unburned hydrocarbons
Oxides of Nitrogen (NOx)
Acoustic performance
Sociability
No odor, smoke
Unregulated emissions
59
62. Why Do Engine OEMs Choose Us?
Component Technology excellence and
system integration capabilities
Proven technology – reliability and durability
Developing new products for future
emissions regulations
Full-system provider
61
65. Emission Systems in
Production & Development
Successfully introduced on-highway aftertreatment for:
EPA 2004
Euro 4
EPA 2007
Euro V
We are currently developing new products for:
EPA 2010
Global Euro IV / V / VI platform
Light Duty Diesel platform
Tier4 / Stage IIIB off-highway
64
67. Summary
Exploding market in a ten-year window
Worldwide industry leading technology and
system integration capabilities
Improving operating margins
66
68. Thank You for Your Interest in
Cummins
We will now take your questions.
Contact Information:
Dean Cantrell
Director – Investor Relations
(812) 377-3121
Investor_Relations@Cummins.com
www.cummins.com
67
70. Components Segment
Q3 2008 LTM
New products launched
Revenue by Product
Industry leading
technology
Filtration
Capacity expansion Turbocharger
38%
31%
Grow with CMI and non-
CMI engine volumes
Leverage global
distribution to grow
aftermarket Fuel
Systems
14%
Q3 2008 LTM Segment Data
Emission
Sales: $3.3 billion
Solutions 17%
EBIT: $222 million
EBIT Margin: 6.8%
69
72. Components Segment
Revenue by Customer Revenue by Geography
Other AsiaPac
6%
China
India 5%
2%
Latin America
CMI First Fit 4%
Aftermarket
33%
35%
North America
57%
EMEA
26%
Other
OEM's First
Fit
32%
Q3 2008 LTM Sales: $3.3 Billion
71
73. Revenue by Marketing Territory
Cummins Turbo Technologies
Q308 LTM 2011
Other AsiaPac
Other AsiaPac
China
China 3%
3%
10%
12%
India
4%
India
Latin America
5%
3%
Latin America
North America
3%
45%
North America
59%
EMEA
21%
EMEA
32%
72
74. Revenue by Marketing Territory
Cummins Fuel Systems
Q308 LTM 2011
China
China
Latin America 9%
3% Latin America
2%
2%
EMEA
EMEA
5%
16%
North America
North America
79%
84%
73
75. Revenue by Marketing Territory
Catalytic Exhaust
Q308 LTM 2011
China Other AsiaPac
2% 2%
China
21%
India
EMEA
1%
28%
Latin America
6%
North America
61%
North America
68% EMEA
11%
74
76. Revenue by Marketing Territory
Cummins Filtration
Q308 LTM 2011
Other AsiaPac
China 4%
Other AsiaPac
4%
13% India
2%
China Latin America
India 1% 8%
1%
Latin America
8%
North America
North America
55%
57%
EMEA
25%
EMEA
22%
75
77. Cummins Turbo Technologies
Revenue by Customer Revenue by Geography
Other AsiaPac
China 3%
Aftermarket 12%
25%
CMI First Fit India
35% 5%
Latin America North America
3% 45%
Other
OEM's First
Fit EMEA
32%
40%
Q3 2008 LTM Sales: $1,023 Million
76
78. Cummins Turbo Technologies
Market Share / Competition
North America Europe
Other Other
CMI
1% 10%
MHI 17%
14% MHI
CMI
30% 5%
Honeywell Borg
Honeywell
23% Warner
27% 41%
Borg
Warner
32%
77
79. Cummins Turbo Technologies
Main Customers Major Operations
Cummins Guarulhos, Brazil
Fiat Power Train Charleston, South Carolina
Volvo Wuxi, China
Scania Huddersfield, England
Daimler Dewas, India
Pithampur, India
Dongfeng Cummins Engine
Co
First Auto Works, China
CNHTC, China
Weifang Diesel, China
Tata Motors, India
78
81. Cummins Fuel Systems
Revenue by Customer Revenue by Geography
China
Latin America
3%
2%
Aftermarket
26%
EMEA
16%
Other
CMI First Fit
OEM's First
65%
Fit
9%
North America
79%
Q3 2008 LTM Sales: $451 Million
80
82. Cummins Fuel Systems
Major Operations
Main Customers
Cummins Columbus, Indiana
Scania Ciudad Juarez, Mexico
Komatsu El Paso, Texas
Wuhan, China
Södertälje, Sweden
81
83. Cummins Filtration
Revenue by Customer Revenue by Geography
CMI First Fit
Other AsiaPac
6%
13%
China
India 1%
1%
Other
Latin America
OEM's First
8%
Fit
35%
North America
55%
Aftermarket
59%
EMEA
22%
Q3 2008 LTM Sales: $1,227 Million
82
84. Cummins Filtration
Revenue by Application
Coolant /
Industrial Chemicals
Air Intake
4%
Silencers
Systems
3%
22%
Exhaust
Systems
20%
Intank Filters
4%
Hydraulic
Filters
5%
Water Filters
3%
Lube Filters
22%
Fuel
Filters/FWS
Q3 2008 LTM Sales: $1,227 Million
83
85. Cummins Filtration
Market Share / Competition
North America Europe
CMI CMI
Donaldson
4% 9%
9%
Clarcor
M&H
8%
28%
Luberfiner
Other
4% 50%
Other Mahle
75% Donalson 10%
3%
84
86. Cummins Filtration
Main Customers Major Operations
International Daman, India
Paccar/Kenworth Pune, India
Case/Case New Holland Kilsyth & Scoresby, Australia
Deere Sao Paulo, Brazil
Volvo/Novabus Quimper, France
Freightliner / Western Star Pietermaritzburg, South Africa
Komatsu Johannesburg, South Africa
Cummins Shanghai, China
Distributors San Luis Potosi, Mexico
Kyungki-Do, Korea
Singapore
Multiple US locations in Tennessee,
Iowa , Wisconsin and Ohio
85
87. Cummins Filtration Global Locations
Mechelen and Rumst,
Belgium
Filtration
Rugby, UK
Filtration
Kyungki-Do, Korea
Filtration
Lake Mills, IA
Filtration
Tokyo, Japan
Findlay, OH Filtration
Quimper, France
LDA/Specialty Filtration Filtration
Nashville, TN
Filtration Corporate
Cookeville, TN
Shanghai, China
Filtration
Cummins Filtration
Daman, India
Shanghai Fleetguard
San Luis Potosi, Mexico Exhaust
Filtration
Xiangfan, China
Xiangfan Fleetguard Exhaust
Sao Paulo, Pune, India
Brazil Fleetguard Filtrum JV
Filtration,
160 Countries Exhaust
Singapore,
5,600 Employees Filtration
21 Manufacturing Facilities Johannesburg,
14 Distribution Centers South Africa
Filtration
Kilsyth and Scoresby,
Pietermaritzburg,
3 Technology Centers
Australia
South Africa
30,000+ Points of Sale Filtration, Coolant & Exhaust
Filtration
Office Location Distribution Center Sales Office Manufacturing Facility Joint Venture
86
88. Cummins Emission Solutions
Revenue by Customer Revenue by Geography
Aftermarket China Other AsiaPac
3% 2%
2%
Other
OEM's First
Fit
29%
EMEA
28%
CMI First Fit North America
68%
68%
Q3 2008 LTM Sales: $552 Million
19
90. Cummins Emission Solutions
Market Share - Europe
Market Share – N. America
Other
11% Other
Cummins
22%
Donaldson 26%
4%
Tenneco
10%
Cummins
55%
Emcon
Emcon
Eberspaecher
20%
22%
20%
Tenneco
10%
21
91. Cummins Emission Solutions
Main Customers Major Operations
International Mineral Point, Wisconsin
Paccar/Kenworth Darlington, England
Volvo/BlueBird/Novabus Pretoria, South Africa
Freightliner / Western Star Columbus, Indiana
Distributors Stoughton, Wisconsin
22
92. Thank You for Your Interest in
Cummins
We will now take your questions.
Contact Information:
Dean Cantrell
Director – Investor Relations
(812) 377-3121
Investor_Relations@Cummins.com
www.cummins.com
23
