Company Overview

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Company Overview
Indiana UniversityKelley School of
BusinessFebruary 10th, 2005
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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 - Past
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Diesel 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 Bright
Dont just take our word for it. Visit
www.dieselforum.org for more information and
quotes from external sources like those below.

• "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

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Diversified Revenue Base
.
Revenue by Business Unit and Geographic Region
2004 8.4 billion
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Record Shareholder Value
200
74.6
175
150
125
Stock Price Index
15.7
100
10.9
75
Peer group Caterpillar, Navistar,
Ingersoll-Rand, Paccar, Eaton, ArvinMeritor,
Deere, Dana, CNH
50
12/31/2003
3/31/2003
6/30/2003
9/30/2003
12/31/2004
CMI
SP 500
Peer Avg.
Data as of Dec. 31, 2004
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Confident 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 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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External Recognition
2004 -- 1 Corporate Citizen

• 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.

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Overview ofAccounting Finance

• Corporate
• MIA (Columbus, IN)
• External reporting
• Treasury (Columbus, IN)
• Cash, Risk, Pension
• CBS (Nashville, TN)
• AP, AR, GL, Intercompany, Fixed Assets
• BAA (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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Treasury

• Corporate
• MIA (Columbus, IN)
• External reporting
• Treasury (Columbus, IN)
• Cash, Risk, Pension
• CBS (Nashville, TN)
• Business Services (e.g. payroll, etc)
• BAA (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 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 andTraining 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 ?
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Career Path Pam Roberts
1986
1988
1987
1991
1992
1993
PFR Analyst
Mgr Financial Architecture
Mgr Financial Analysis
Finance Director - European Marketing
Director Corporate PFR
Director WW ABM
1997
1996
1995
2000
2003
Controller - Fleetguard
Ex Dir - Business Analysis Audit
Controller - Aftermarket
Ex Dir - International CBS
VP Finance Filtration BU
2004 Associate Director, Professional
Development Kelley School of Business
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CAREER PROFILE SUPPLY CHAIN
Rich Freeland VP GM Fuel Systems Business
Vice President - Fuel Systems Business
2001-2004 Engine Business Purchasing
Quality Vice President - Heavy Duty Operations
1999-2001 Fuel 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 FINANCE
Dean Cantrell Director Treasury Services
Director Investor Relations 2004 -
present Director- Treasury Services 2002-
2004 Controller - Marine Business 2000-2002 Fi
nance Manager - Columbus Engine Plant
1998-2000 MI A - Financial Analyst 1996-1998
MBA - Kelley School of Business 1996