2. 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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3. 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
3
4. Our Vision/Mission
VISION
Making people’s lives better by unleashing the Power of Cummins.
MISSION
• 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.
4
5. Diversified Global Power Leader
Four Complementary Businesses
Engines Power Components Distribution
Generation
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6. Creating Greater Shareholder Value
Doubled our revenue in 5 years
Highest period of net earnings as a percent of
sales in over 40 years
Generated $4.6 billion in EBITDA since 2003
Improved debt to capital from 60% in 2003 to 17%
today
Actively repurchased 3.5 million shares in 2 years
Exceeded both ROANA and ROE targets for over
three years
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7. 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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8. Global Adoption Emission Standards
Off-
highway
2011-14
Europe
2009
US / China
Canada 2010
2010
Australia
2008
Mexico Brazil India
2008 2009 2010
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9. Dieselization of North America
3500
<6000 lb GVW 6000 – 8500 lb GVW >8500 lb GVW
Car Light Truck (includes PU trucks, SUVs and Vans)
Light Vehicles (<14,000 GVW)
9.9 M 2.9 M 6.6 M 0.85 M
100% gasoline 100% Gasoline 67% Diesel, 33 % Gas
9
10. Profitable Growth – Engines
Light Duty Diesel in 1.4
U.S. and China 1.2
Engine Production (Millions)
1.0
13- and 11-liter 0.8
Engines in China 0.6
0.4
Market Share Gains 0.2
Midrange Engine 0.0
2006 Organic New 2010
Capacity Growth Platforms
In 2010, 25% of our engine volume
will come from new engine platforms.
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11. Profitable Growth – Components
Evolving Global Emission Standards
Strategic advantage in Accelerates Market Growth for
emissions compliance Diesel Catalytic Exhaust
$6
Significant future
$5
growth in revenue and
Global Market Size ($B)
earnings $4
Multiple new product $3
introductions
$2
Winning non- We have 30% of
the market today
Cummins business $1
$0
2006 2010
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12. Profitable Growth – Distribution
2011
2006
2001
$3.2B $5.4B
$8.9B
Joint Venture Company Owned Independent
Revenues through our distribution channel are growing 10% CAGR.
In 2011, nearly 90% of revenue will flow through fully or partially
owned distributors.
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13. Profitable Growth – Power Generation
Pursuing market 35% Global Generator Set Consumption (Total Output)
Approximate $7 Billion Annual Global Market
leadership in 30%
Top 8 regions
commercial 92% of total
25%
generators Market Leader (# 1 or # 2)
20%
Leader in some segments
Expanding into Not a market leader
15%
adjacent consumer 10%
markets
5%
0%
North Western China Middle India Southeast Latin Africa All Others
America Europe East Asia America
13
14. 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
14
15. Cummins’ Climate Change Initiative
Cummins pledged to reduce global GHG
intensity emissions by 25% from 2005 to 2010
Cummins joined the EPA’s Climate Leaders
Program with aggressive target
For Cummins, reducing GHG emissions is
fundamentally about improving energy
efficiency.
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16. 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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17. 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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18. 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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19. 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
19
20. Our Core Values
Corporate Responsibility
Diversity
Integrity
Global Involvement
Innovation
Delivering Superior Results
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21. 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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22. 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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24. 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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25. 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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26. Cummins Export Policy - Overview
Cummins has openly communicated export
policies and practices to investment
community
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27. Cummins Export Policy – Sudan
Cummins 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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28. 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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29. 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.
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