IR 3Q 2001 Results

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Third Quarter2004 Results
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Safe Harbor
Forward looking statements that involve risks.
Please refer to June 30, 2004, Form 10-Q for
details on factors that influence results.
3
Diluted Earnings Per Share
Third Quarter
Change
2004 2003
Continuing EPS 1.18 .83 42 Discontinued Ongo
ing .05 (.01) Gain on Sale .13 .06 TOTAL 1.3
6 .88
TOTAL OPERATIONS 1.23 .82 50
EPS From Total Operations Increased 50
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Third Quarter Results

• Market showing steady improvement
• Gained market share through innovative products
  and solutions
• Expanded recurring revenue
• Revenue up 15
• Infrastructure ? 32
• Industrial Solutions ? 15
• Security Safety ? 11
• Climate Control ? 2

Strong Revenue Growth in the Third Quarter
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Third Quarter Results 2004

• Lowering cost base by productivity improvement
• Price increase and productivity partially offset
  material cost inflation
• Operating margin improved to 11.7 from 10.3 in
  2003
• YTD margin 11.9 vs. 9.3 in 2003
• Announced sale of Dresser-Rand for 1.2 Billion

6
Ingersoll-Rand Portfolio Review 2000
Platforms (top 3)
Fix or Sell (next 5)
Divest (next 2)
Market Value of Equity
Bearings
Dresser-Rand IDP Pumps
Drills
Tools
Air Compressors
Heavy Vehicles (Road)
Thermo King
Architectural Hardware
Compact Vehicles (Bobcat Club Car)
Gross Investment
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Portfolio Progression 2000 - 2004
Year 2000
2004

• Climate Control
• Added stationary refrigeration and service.
  Significant cost and capacity reduction

G
Thermo King
G
Bobcat Club Car Road Machinery Utility
G

• Infrastructure
• New products, manufacturing rationalization

G
G
Y
Y
Y
G
Y
G
G
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Portfolio Progression ? Divestiture
Pumps
Sold in 2000
Red
Bearings
Sold in 2002
Red
Drills
Sold in 2004
Red
Dresser-Rand
Scheduled Sale 4Q 2004
Red
Divested 3.3 Billion of Revenue
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Portfolio Progression Acquisitions Since 2000

• Hussmann ? Stationary Refrigeration
• NRS and Taylor ? Service
• Superstav and Sambron ? Bobcat compact equipment
• Interflex, ETC, FX Technologies ? Electronic
  Security Software and Integration
• Additional branch operations to increase
  recurring revenue

30 Acquisitions Since 2000
10
2004 Pro Forma Revenue from Continuing
Operations
Climate Control 31
Road Utility 10
Industrial Solutions 16
Bobcat Club Car 23
Security Safety 20
9 Billion Diversified Industrial Company
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Financial Targets

• Consistent revenue growth
• 4-6 Organic
• 4-6 Acquisition
• Achieve 15 operating margin
• 12 -15 EPS growth
• Achieve 15 ROIC
• Free cash flow of 500 Million

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Cash Deployment

• Growth of current strategic platforms by bolt-on
  acquisitions
• New products
• New technologies
• Expand geographic coverage
• Accelerate growth of recurring revenue
• Dividends
• Target 25 - 30 of 3 year average FCF
• Yield consistent with diversified industrials
• Share buyback 10 million share authorization
• Excellent value at current prices
• Target to purchase at least 1.0 million shares
  per quarter

Reinvestment Strategy to Maximize Total Return to
Shareholders
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Dramatic Growth Through Innovation
Revenue from New Product Launches
300
Millions
200
2003
2004F
2004F
New Product Launches in 2004 Adds Over 3 to
Organic Growth Rate
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Air Solutions - Innovation
18 Increase in 3Q 2004 Revenues and Orders
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Bobcat Driving Growth through Innovation
Third Quarter Revenues Up Over 30
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Club Car
Rough-terrain Vehicle
Club Car Revenues Up 28 in Third Quarter
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2004 Third Quarter

• Encouraged by operating performance
• On target to deliver improved earnings and cash
  flow
• Executing core strategies
• Dramatic Growth
• Investing in innovation
• Driving continuous improvement
• Grow recurring revenues

On the Right Course to Achieve Profitable Growth
and ROIC Targets
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Third Quarter 2004 Results
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Revenues
Third quarter year-over-year growth
29
15
13
12
Latin America
Asia Pacific
North America
Europe
Revenue Gains in All Major Geographic Regions
20
Climate Control
Millions

• Climate Control Americas
• Revenue down 4
• Decline in display case
• Continued strength in transport
• Climate Control International
• Revenue up 9
• Strong European transport
• Improved display case
• Operating margin improvement
• Favorable product mix
• Operational improvement

2
694
684
Operating Margins
11.3
9.8
2004
2003
21
Industrial Solutions
Millions

• Air Solutions
• Revenue up 18
• New product strength
• Recurring revenue up 13
• Productivity Solutions
• Revenue up 8
• Strength in industrial assembly
• Growth in new products
• Operating margin improvement
• Revenue leverage
• Growth in service business
• New products
• Productivity program

399
15
348
Operating Margins
11.6
7.6
2004
2003
22
Infrastructure
Millions

• Bobcat
• Revenue up 32
• Strong in North America
• Higher attachment volume
• Road Development
• Revenue up 39
• Strong in North America
• Club Car
• Revenue up 28
• Strong demand for Precedent
• Operating Margin Improvement
• Revenue leverage
• New products
• Adverse impact of raw material price increases

812
32
615
Operating Margins
12.2
9.7
2004
2003
23
Security and Safety
Millions

• Strong North American Commercial and Residential
• Electronic Access Control and Solutions up 14
• Operating Margins
• N.A. mechanical margins remain strong
• Growth in Solutions business and International
• Investment in new products
• Raw material cost inflation
• Costs associated with Kryptonite locks

11
463
417
Operating Margins
16.5
21.2
2004
2003
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Balance Sheet Indicators
2004
2003
Inventory Turns Receivables (DSO) Payables
(DPO) Total Debt Debt to Capital Capital
Expenditures Depreciation and Amortization
6.3 61 35 2.0 B 28.2 21 M 43 M
6.1 60 33 2.4 B 36.2 23 M 45 M
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2004 Earnings Outlook Fourth Quarter
Fourth Quarter EPS Continuing Operations 1.16 -
1.26 Discontinued Operations (0.03) Total
Operations 1.13 - 1.23
Fourth Quarter EPS 1.13 - 1.23
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2004 Earnings Outlook Full Year
Full Year EPS Continuing Operations 4.62
4.72 Discontinued Operations On-going
Legacy 0.07 CDSOA from 2003 0.11 Total
Operations 4.80 4.90

Excludes Gain on Sale of Divested Businesses
Outlook Reflects an EPS Increase of More Than 43
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Third Quarter2004 Results