This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially. A summary of risks and uncertainties is described in more detail in our periodic reports filed with the Securities and Exchange Commission (SEC). We undertake no duty to update or revise this presentation, whether as a result of new information, future events or otherwise. For the most recent financial, risk and other information about PACCAR, please see our SEC filings and most recent earnings release available on the Investor Resources page of www.paccar.com.
May 2015
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May 2015
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>16T Truck Manufacturing 2014 Production (Units 000s)
Daimler Volvo Volkswagen Dongfeng PACCAR Sinotruk FAW Beijing Foton Shaanxi Tata Motors Hino Navistar Jianghuai KamAZ Isuzu Iveco Ashok Leyland Hongyan Hualing Ford
#5
Total Production 2014 = 1.8 Million 0
May 2015
50
100
150
200
250 Page 4
PACCAR Revenues and Profit 76 consecutive years of net profit Dividends every year since 1941 ($ Millions) Revenues
1st Quarter 2015 2014 $4,833 $4,380
Full Year 2014 2013 $18,997 $17,124
Net Income
378
274
1,359
1,171
Diluted EPS
1.06
0.77
3.82
3.30
May 2015
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PACCAR Inc
A+/A1 Credit Ratings ($ Millions)
May 2015
Cash & Securities Manufacturing Assets Investment in Financial Services Total Assets
3/31/15 $2,715 5,774 2,355 $10,844
Manufacturing Debt Manufacturing Liabilities Shareholders' Equity Total Liabilities & Equity
$0 4,112 6,732 $10,844 Page 6
PACCAR Overview – Q1 2015 Consolidated Sales & Revenues $4.83 Billion $378 Million Net Income PACCAR Financial Pre-Tax Profit $89 Million PACCAR Parts Pre-Tax Profit $139 Million $6.73B Stockholders’ Equity A1/A+ Credit Ratings Shareholder Return of 18% in 2014 Regular Dividend More than Doubled in Last 10 years May 2015
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PACCAR
Excellent Financial Performance Throughout the Business Cycle $ Billions 20
Revenue
$ Billions $ Millions 20 1,500
Net Income
$ Millions 1,500
16
16
1,200
12
12
900
900
8
8
600
600
4
4
300
300
0
0
0
0 05 06 07 08 09 10 11 12 13 14
05 06 07 08 09 10 11 12 13 14
Capital Investments and R&D Expenses
Operating Cash Flow $ Millions 2,400
1,200
$ Millions $ Millions 2,400 900
$ Millions 900
2,000
2,000
750
750
1,600
1,600
600
600
1,200
1,200
450
450
800
800
300
300
400
400
150
150
0
0 05 06 07 08 09 10 11 12 13 14
0
0 05 06 07 08 09 10 11 12 13 14 Capital
May 2015
R&D Page 8
Annualized Shareholder Total Return % Fifteen Years, As of March 31, 2015 Hino Deere Caterpillar Volvo Isuzu Honda Daimler Toyota S&P 500 Ford Navistar
-5
May 2015
0
5
10
15
20
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Quality
Technology
Innovation
Automotive News PACE Innovation Partnership Award 2014
Kenworth T880 - Commercial Truck of the Year 2015
Operational and Workplace Leadership Awards
DAF XF Euro 6 – 2014 Fleet Truck of the Year in the U.K.
GreenFleet Vehicle Manufacturer of the Year 2014
Engineering and Production Technology Leadership Awards May 2015
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Aftermarket Support
Commercial Vehicles
Powertrain
Information Technology May 2015
Financial Services Page 11
Heavy Duty Commercial Vehicles Units (000s) 000s Units
Units (000s)
350
350
300
300
250
250
200
200
150
150
100
100
50
50
0
0 97
99
01
03
05
07
09
11
13
15 Fcst
US & Canada May 2015
Europe
South America Page 12
New Products and Technologies
Fault Detected
May 2015
Off-Board Diagnostics
Automated Notification
Action Plan
Resolution
Page 13
New Facility Investments
• Westerlo
DAF, Ponta Grossa, Brasil
DAF, Westerlo, Belgium
Kenworth, Chillicothe, Ohio
Tech Center, Mt. Vernon, WA
May 2015
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PACCAR Engines Worldwide
May 2015
PACCAR PX-5
PACCAR PX-7
PACCAR PX-9
4.5 Liter
6.7 Liter
8.9 Liter
PACCAR PR
PACCAR MX-11
PACCAR MX-13
9.2 Liter
10.8 Liter
12.9 Liter Page 15
PACCAR MX Engines In Operation Engines (000s)
Engines (000s)
400
400
350
350
300
300
250
250
200
200
150
150
100
100
50
50
0
0 2006
2007
2008
DAF MX-13 May 2015
2009
2010
2011
KW/PB MX-13
2012
2013
2014
DAF MX-11 Page 16
PACCAR Heavy Duty Market Share 50%
50%
45%
45%
40%
40%
35%
35%
30%
30%
25%
25%
20%
20%
15%
15%
10%
10%
5%
5%
0%
0% S. America
Europe
Australia
2004 May 2015
U.S.
Canada
Mexico
2014 Page 17
PACCAR Parts Revenue $ Millions
$ Millions
3,500
3,500
3,000
3,000
2,500
2,500
2,000
2,000
1,500
1,500
1,000
1,000
500
500
0
0 05
May 2015
06
07
08
09
10
11
12
13
14 Page 18
PACCAR Parts Distribution Centers and Dealers
PACCAR Distribution Centers
May 2015
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PACCAR Parts Investments
Eindhoven, NL
Renton, WA May 2015
Lancaster, PA
Ponta Grossa, BR Page 20
PACCAR Global Dealer Network
May 2015
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Rigorous Cost Control SG&A
$ Millions
%
500
5
400
4
300
3
200
2 05
06
07
08
09 Dollars
10
11
12
13
14
% to Sales
• Reliability
• Efficiency
• Eliminate Defects
• Fast & Easy Assembly
• Productivity
• Reduce Variation
• Robust Design
• Streamlined Processes
• Consistent Performance
May 2015
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Throughout the world, PACCAR has earned a reputation for unsurpassed quality. Much of the credit for this global success goes to PACCAR partner suppliers. We salute these companies who join with us to make product quality the ultimate competitive advantage.
May 2015
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>6t Regional Truck Market Growth Russia/CIS
Europe
95 305
175
China
370
14% Growth 990 1,010
North America 475
4% Growth
505
1% Growth
India Africa & Middle East
Latin America 195
185 200
240
2% Growth
4% Growth
Growth Rate is Annualized 2014-2019 May 2015
215
365
11% Growth Rest of Asia
0% Growth Australia 21
26
4% Growth
280 320
2014
>6t Global Market Size
2019
Units in Thousands
3% Growth
2014 – 2.8 Million 2019 – 3.2 Million Page 24
May 2015
Taiwan
Russia
Brasil
India Page 25
May 2015
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PACCAR Financial Services – Q1 2015 $11.8 Billion in Assets $89 Million Pretax Profit 168,000 Vehicles Financed 50,000 Customers Dealer Floorplan Retail Financing Full Service Leasing May 2015
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PACCAR Financial Services Competitive Advantages A+/A1 Credit Ratings Quality Portfolio Technology Leadership
May 2015
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PACCAR Financial Services Assets
23% Europe
Australia & Mexico 10%
PacLease 13%
US & Canada 53%
2004 - $7.0 Billion May 2015
Australia & Mexico
10%
20% Europe PacLease 20%
US & Canada 50%
1Q15 - $11.8 Billion Page 29
PACCAR Financial Europe Trucks 000’s
Trucks 000’s
50
50
40
40
30
30
20
20
10
10
200 DAF Dealers
0
0
15 European Countries
05 06 07 08 09 10 11 12 13 14 May 2015
$2.3 Billion in Assets
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PACCAR Leasing Trucks 000’s
Trucks 000’s
40
40
35
35
30
30
25
25
20
20
560 Service Locations
15
15
38,000 Vehicles
10
10
$2.4 Billion Assets
05 06 07 08 09 10 11 12 13 14 May 2015
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PACCAR Financial Services Delivers Strong Performance Low 30+ Days Past Due
Assets and Pretax Profit Pretax Profit $ Millions
%
%
Assets $ Billions
8
8
16
400
7
7
14
350
6
6
12
300
5
5
10
250
4
4
8
200
3
3
6
150
2
2
4
100
1
1
2
50
0
0
0
0
90 92 94 96 98 00 02 04 06 08 10 12 14
05 06 07 08 09 10 11 12 13 14
Avg. Earning Assets
May 2015
Pretax Profit
Page 32
PACCAR Financial Services
($ Millions)
May 2015
Finance & Other Receivables Equipment on Operating Leases Other Assets Total Financial Services Assets
3/31/15 $8,928 2,256 654 $11,838
Commercial Paper Term Notes & Bank Loans Deferred Taxes & Other Liabilities Total Financial Services Liabilities Equity Total Liabilities & Equity
$2,175 6,000 1,308 9,483 2,355 $11,838 Page 33
PACCAR Competitive Advantages Excellent Shareholder Return Experienced Management Team Highest Quality Products Rigorous Cost Control Balanced Global Diversification Excellent Supplier Partnerships Extensive Capital Investments Innovative Technology Global Aftermarket Parts Sales Profitable Financial Services Strongest Dealer Network May 2015
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May 2015
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