July 28, 2006

1
Second Quarter 2006 Results

• July 28, 2006

2
Safe Harbor
Todays presentation includes forward looking
statements that involve risks. Please refer to
March Form 10Q for details on factors that may
influence results.
3
Second Quarter 2006 Results

• Record revenues
• Record earnings of 0.95 per share
• 14 increase compared to 2Q 2005
• Upper end of forecast EPS range 0.90 to 0.95

Continued Performance Improvement, Record
Revenues and Earnings
4
Second Quarter 2006 Results

• Most major-end markets enjoyed excellent activity
  in the first half
• Construction Commercial, Road Development
• Industrial
• Transport refrigeration
• Residential building activity slowed somewhat in
  2Q
• Total revenue increased by 10, 9 organic
• Recurring revenues of 612 Million, 20 of sales
• Up 11 in 2Q 2006, up 13 year-to-date
• Robust order growth ? up 14
• Double-digit growth at Climate Control,
  Construction and Security Technologies

Strong Second Quarter Performance
5
Increasing Investments for Growth by 80 Million
In 2006

• New product development
• Expand global presence ? high potential markets
  India, China
• Covers all five of our business sectors
• Spent about 32 Million year-to-date
• 25 Million per quarter in second half of 2006

China
India
Investments Targeted to Add 200 Million to 2007
Revenues and 300 Million to 2008 Revenues
6
Priorities for Cash Flow

• Available cash flow target range for 2006
  850 to 900 Million
• Progressing on bolt-on acquisitions
• Accelerated share repurchase
• Purchased 5 Million shares for 220 Million in 2Q
• Purchased 2.5 Million shares for 100 Million in
  July
• Target to repurchase 800 Million of shares in
  2006

Exploring Prospect to Expand Stock Buyback
Activity Beyond the 800 Million Target for 2006
7
North American Refrigerated Trailer Market

• Refrigerated trailer market continued to grow in
  second quarter
• Year-to-date shipments 6, build up 8
• Europe market up 5 year-to-date
• Heavy truck orders and shipments growth rates
  exceed refrigerated trailers due to 2007 emission
  standards
• Refrigerated trailer under-shipment 7,000 to
  8,000 units

• TriPac auxiliary power unit sales increased in
  the second quarter
• 40 Million for the first half of 2006
• 90 to 100 Million target for 2006
• Solid margins

Thermo King North American Trailer Revenues
Forecast to Increase 5 to 10 in 2006
8
Residential Activity - Bobcat

• Difficult year-over-year comparisons
• First half 2006 N. America skid-steer business,
  down slightly
• Mini-excavator and track loader up 20
• Overseas growth, especially Europe
• Parts and attachments growth
• New products in 2007 to bolster revenue growth

Revenue for Second Half of 2006 Expected to
Increase by Mid Single Digits
9
Residential Activity Security Technologies

• 500 Million annual residential revenues
• Majority of residential sales to big box
  retailers
• 75 of sales to expanding commercial construction
  market
• Second half 2006
• Revenues expected to increase 8 to 10
• Annual operating margins 17 to 18

10
Second Quarter 2006

• Excellent second quarter
• Expect record performance for 2006
• Revenues
• Earnings
• Available cash flow
• Continue to execute strategy
• Deploy cash to generate value for shareholders
• Diversified portfolio of businesses and lean
  business model will dampen cycles

11
Second Quarter 2006 Results
12
Second Quarter EPS Bridge
(.06)
.21
Net Inflation
(.05)
.02
Volume Price
Growth Investments
Shares net of FAS 123 (R)
Net Productivity
.97 Continuing
.85 Continuing
2006 Actual
2005 Actual
EPS From Continuing Operations Increased By 14
13
Revenues
Second Quarter Year-Over-Year Growth
19
11
10
9
Asia Pacific
Europe
Americas
Total Ingersoll Rand
Growth In All Regions
14
Climate Control Technologies
Millions

• Climate Control Americas
• Revenues up 13
• Growth across all businesses
• Climate Control International
• Revenues up 4
• European growth offsetting modest declines in
  Asia Pacific
• Operating Margin
• Material inflation
• One-time inventory adjustment
• Partially offset by higher volumes and pricing

798
10
728
Operating Margins
11.1
11.5
2005
2006
15
Compact Vehicle Technologies
Millions

• Bobcat revenues up 7
• Strong international growth
• New products
• Parts and Attachments growth
• Club Car revenues up 14
• Golf car market share gain
• Utility vehicle, aftermarket and strong
  international growth
• Operating Margin
• Growth leverage and productivity offsetting
  material inflation

789
9
727
Operating Margins
17.4
16.1
2005
2006
16
Construction Technologies
Millions

• Road Development
• Revenues up 6
• Pavers and compaction equipment
• Utility Equipment Attachments
• Revenues up 25
• Complete unit aftermarket growth
• Growth in all major regions
• Operating Margin
• Growth leverage
• Productivity improvements
• Offsetting material inflation and growth
  investments

389
13
343
Operating Margins
12.2
13.8
2005
2006
17
Industrial Technologies
Millions

• Air Solutions up 12
• Strong worldwide industrial markets driving
  revenue growth in all major regions
• Productivity Solutions up 14
• New products
• Recurring revenue
• International and domestic growth
• Operating margin
• Material inflation
• Resolved facility work stoppage
• Partially offset by growth leverage and
  productivity improvements

483
12
432
Operating Margins
13.0
13.7
2005
2006
18
Security Technologies
Millions

• Revenue Growth in all regions
• Americas up 4
• Strong commercial markets
• Softening residential markets
• ESA up 10
• Asia Pacific up sharply
• Operating Margin
• Materials inflation
• Inclusion of lower-margin acquisitions
• Growth investments
• Partially offset by productivity and growth
  leverage

583
10
530
Operating Margins
16.8
17.9
2005
2006
19
Balance Sheet Indicators
Q2 2006
Q2 2005
Inventory Turns 5.8 5.9 Receivables
(DSO) 59 62 Payables (DPO) 37 41 Total Debt 2.2
B 1.6 B Debt to Capital 27.9 21.1 Capital
Expenditures 38 M 52 M Depreciation and
Amortization 46 M 48 M
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2006 Earnings Outlook

• End markets showing solid demand, orders
  increased 14
• Expect revenues to increase 6 to 8 in second
  half of 2006
• Higher metals and transportation costs
• Full-year material cost increase forecast 180 to
  190 Million
• Up from 125 Million to 140 Million in previous
  forecast
• Offset cost increases by productivity and pricing

Strategy on Track and Performance Improving
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2006 Earnings Outlook Full Year
EPS Growth Continuing Operations 3.57 -
3.67 16 - 19 Discontinued Operations (0.12)
Total Operations 3.45 - 3.55 15 - 19
Growth calculation excludes the 2005 gains on
sales of businesses
22
2006 Earnings Outlook Q3
EPS Growth Continuing Operations 0.85 -
0.90 13 - 20 Discontinued Operations (0.03)
Total Operations 0.82 - 0.87 14 - 21
Growth calculation excludes the 2005 gains on
sales of businesses
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