Company OverviewCompany Overview

Indiana UniversityIndiana University

Kelley School of BusinessKelley School of BusinessFebruary 10February 10thth, 2005, 2005

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Cummins…...Cummins…...

Global Fortune 500 Company

Design, manufacture and market diesel and alternative fuel engines, filtration and exhaust systems, power generation systems and related components

Largest independent engine manufacturer

Industry leader in engine and manufacturing technologies

Rich history of innovation

Company culture committed to Corporate Responsibility and making a positive impact on the communities in which we operate

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APPLICATIONS…......

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Diesel Industry - PastDiesel Industry - Past

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Diesel Industry - PresentDiesel Industry - Present

"What if you could brush 40 mpg in a big, fast, full-on luxury sedan? That's no longer a rhetorical question, thanks to the brilliant Mercedes E320 CDI. What you get is the same E-Class sedan that's among the best luxury cars in its class, only it's driven by a turbocharged diesel engine that proves a car can save gas and still kick, um, tail."

By Lawrence Ulrich "More Car, Less Gas; Seven Models That Get Great Gas Mileage Without Sacrificing Style Or Performance"

NPR: Morning EditionAugust, 2004

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Diesel Industry – Future is BrightDiesel Industry – Future is Bright

"EPA projections show that if diesels accounted for a third of all vehicle-miles traveled in the country by 2020, the nation could save a million barrels of fuel a day and consumers could save more than $20 billion per year."By Greg Schneider "Will New, Cleaner Diesel Cars Fuel Comeback in U.S.?"The Washington PostFebruary 22, 2004

"And if gas prices have you fuming, you may want to go diesel. Consider these facts. Some 40 percent of new cars sold in Europe are diesel compared to only one percent in the United States. In 2007, new emissions standards will require diesel to burn 90 percent cleaner than it does today. Already, diesel is 30 percent more efficient than gas, gets more miles to the gallon and is cleaner."CNN DaybreakMay 12, 2004

"Diesel engines are an extremely attractive technology to help achieve EPA's future emissions standards."Jeff Holmstead, EPA Assistant Administrator for Air and Radiation"Ford and EPA to Test New Clean Diesel Combustion in Passenger Vehicles"Green Car CongressJanuary 28, 2005

Don’t just take our word for it….

Visit www.dieselforum.org for more information and quotes from external sources like those below.

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Diversified Revenue BaseDiversified Revenue Base .

Revenue by Business Unit and Geographic Region

2004: $8.4 billion

Mexico, 3%

Canada, 7%

Australia / New Zealand,

4%

Brazil / Latin America, 4%Africa / Middle

East, 4%

Europe / CIS, 14%

Asia, 14%

United States, 52%

Filtration & Other15%

Power Gen19%

EBU57%

International Distributor

9%

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Record Shareholder ValueRecord Shareholder Value

Data as of Dec. 31, 2004

15.7%

10.9%

Peer group: Caterpillar, Navistar, Ingersoll-Rand, Paccar, Eaton, ArvinMeritor, Deere, Dana, CNH

12/31/2003 3/31/2003 6/30/2003 9/30/2003 12/31/200450

75

100

125

150

175

200

Sto

ck P

rice

In

dex

CMI S&P 500 Peer Avg.

74.6%

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Confident About Our FutureConfident About Our Future

Strengthening U.S. Economy

Robust Truck Demand

Invested in Right Technology

Secured Business Through Long-Term Agreements

Positioned Well in Emerging Markets

Global Growth in Power Generation

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Cummins CultureCummins Culture

What's our personality? Decisive, Driven to win, Agile, Passionate, Caring

Values: What do we value? Integrity: Strive to do what is right and do what we say we will do Innovation: Apply the creative ingenuity necessary to make us better,

faster, first Delivering Superior Results: Exceed expectations, consistently Corporate Responsibility: Serve and improve the communities in which

we live Diversity: Embrace the diverse perspectives of all people and honor

with both dignity and respect Global Involvement: Seek a world view and act without boundaries

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“In the search for character and commitment, we must rid ourselves of our inherited, even cherished, biases and prejudices. Character, ability and intelligence are not concentrated in one sex over the other, nor in persons with certain accents, or in certain races, or in persons holding degrees from some universities over others.”

“When we indulge ourselves in such irrational prejudices, we damage ourselves most of all and ultimately assure ourselves of failure in competition with those more open and less biased.”

– J. Irwin Miller, former Cummins Chairman and CEO.

External RecognitionExternal Recognition

2004 -- #1 Corporate Citizen2004 -- #1 Corporate Citizen

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Overview ofOverview ofAccounting & FinanceAccounting & Finance

Corporate MI&A (Columbus, IN)

– External reporting

Treasury (Columbus, IN)

– Cash, Risk, Pension

CBS (Nashville, TN)

– AP, AR, GL, Intercompany, Fixed Assets

BA&A (Columbus, IN)

– Internal Auditing

Business Units Planning, Forecasting,

Reporting

– Target Setting, Annual Planning, Monthly Reporting

Strategy & Finance

– Financial Simulation, Business Strategy, Special Projects

Financial Analysis & Accounting at Plants

– Budgeting, Capital Planning, Working Capital Management

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TreasuryTreasury

Corporate

MI&A (Columbus, IN)

– External reporting

Treasury (Columbus, IN)

– Cash, Risk, Pension

CBS (Nashville, TN)

– Business Services (e.g. payroll, etc)

BA&A (Columbus, IN)

– Internal Auditing

Working with world wide entities to assess their cash needs and making sure there is adequate working capital to manage their businesses

Working with the Cash Manager and helping him invest excess funds

Working with treasury managers on a number of financial risk management processes

Working with treasury managers on liquidity issues

Working with pension group on tracking various pension related scenarios and reporting the funded status to the management

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Strategy & FinanceStrategy & Finance

Business Units Planning, Forecasting,

Reporting

– Target Setting, Annual Planning, Monthly Reporting

Strategy & Finance

– Financial Simulation, Business Strategy, Special Projects

Financial Analysis & Accounting at Plants

– Budgeting, Capital Planning, Working Capital Management

Financial Simulation:– Analysis of interaction

between external factors and internal resources of BU to arrive at a likely financial position of the company over the next few years

Business Strategy:

– Portfolio analysis to determine new project funding level and allocation across various products and markets

Special Projects:– Analysis of new business

opportunities (valuation, JV analysis, etc.)

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Career andCareer andTraining OpportunitiesTraining Opportunities

Ongoing education (Sponsored by Cummins)

– MBA, CPA, CMA, CFA

Mentoring Program

– Career path development with manager outside your group

– Go to lunch, meet in work, etc

Buddy Program

– Paired with a peer

– Help with day to day questions, what to do in Columbus, finding place to live

Regular Performance Reviews

– Includes self-assessment, manager review, goal setting, what to work on (Individual Development Plan)

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Questions ?Questions ?

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Career Path – Pam RobertsCareer Path – Pam Roberts

1986 1987 1988 1991 1992

PFR Analyst

Mgr – Financial Analysis

Director – Corporate PFR

Finance Director - European Marketing

Mgr – Financial Architecture

1993

Director – WW ABM

Controller - Aftermarket

Controller - Fleetguard

VP Finance – Filtration BU

Ex Dir - Business Analysis & Audit

Ex Dir - International CBS

1995 1996 1997 2000 2003

2004 – Associate Director, Professional Development

Kelley School of Business

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CAREER PROFILE – SUPPLY CHAINCAREER PROFILE – SUPPLY CHAINRich Freeland – VP & GM – Fuel Systems Business

Vice President - Fuel Systems Business 2001-2004Engine Business Purchasing & Quality

Vice President - Heavy Duty Operations & 1999-2001Fuel Systems Business

Plant Manager - Columbus Engine Plant 1996-1999

Executive Director - Aftermarket Logistics 1993-1996

Plant Manager - Diesel ReCon 1991-1993

Director - Parts Marketing/Logistics 1990-1991

Manager - Materials 1986-1990

MBA - Kelley School of Business 1986

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CAREER PROFILE – FINANCECAREER PROFILE – FINANCEDean Cantrell – Director Treasury Services

Director – Investor Relations 2004 - present

Director- Treasury Services 2002- 2004

Controller - Marine Business 2000-2002

Finance Manager - Columbus Engine Plant 1998-2000

MI& A - Financial Analyst 1996-1998

MBA - Kelley School of Business 1996