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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 Relations page of www.paccar.com.
Page 2January 2018
Page 3January 2018
Aftermarket Support
Financial ServicesInformation Technology
Powertrain
Commercial Vehicles
Page 4January 2018
PACCAR Strategy
Premium Products and Services
Profitable Market Share Growth
Geographic Expansion
QualityQuality TechnologyTechnology InnovationInnovation
Page 5January 2018
PACCAR Values
Highest Integrity
Operational Excellence
Conservative Financial
ManagementQuality Long‐Term
Perspective
Page 6January 2018
Trucking Moves the EconomyIf you bought it, it probably was delivered by a truck
71%
13% 10% 6%Truck Rail Pipeline Water
% Total U.S. Freight Tonnage Hauled by Transportation Mode
Page 7January 2018
Units in ThousandsPACCAR Truck Assembly
2012 – 2.6 Million2017 – 3.1 Million
2012 2017
330
110
North America
South America
315
220
360
195
Africa & Middle East
EU28
280
195
282215 300
926.27
152.5
90
1,360
India 232
370230
Rest of Asia
Russia/CIS China
20 2220
Australia
155
925
280
Global >6T Truck Markets
Page 8January 2018
Heavy Duty Commercial Vehicles
0
50
100
150
200
250
300
350
0
50
100
150
200
250
300
350
98 00 02 04 06 08 10 12 14 16 18 Fcst
Units (000s)Units (000s)
US & Canada Europe South America
Page 9January 2018
PACCAR Heavy Duty Market Share
0%
5%
10%
15%
20%
25%
30%
35%
40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
S. America Europe Australia U.S. and Canada Mexico
2007 2017
Page 10January 2018
>16T Truck Manufacturing2017 Production (Units 000’s)
0 50 100 150 200 250 300HualingNavistar
DayunIsuzu
KamAZIvecoHino
HongyanJianghuai
Ashok LeylandTata Motors
Beijing FotonPACCAR
VolvoVolkswagen
ShaanxiSinotruk
DongfengDaimler
FAW
#8
Total Production 2017 = 2.3 Million
Page 11January 2018
0
20
40
60
80
100
120
140
160
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Units (000s)
Brasil
Australia
Europe
Mexico
Canada
US
125,900
61,000
78,800
138,000140,400
137,100
PACCAR Truck Production1.3 Million Trucks Produced 2008‐2017
142,900154,700
140,900
158,900
Page 12January 2018
0150300450600750900
0150300450600750900
97 99 01 03 05 07 09 11 13 15 17
Capital Investments and R&D Expenses
Capital R&D
PACCARExcellent Financial Performance Throughout the Business Cycle
0.00.51.01.52.02.53.0
0.00.51.01.52.02.53.0
97 99 01 03 05 07 09 11 13 15 17
Operating Cash Flow$ Millions$ Millions$ Billions$ Billions
0
5
10
15
20
0
5
10
15
20
97 99 01 03 05 07 09 11 13 15 17
$ Billions$ Billions Revenue
0.00.30.60.91.21.51.8
0.00.30.60.91.21.51.8
97 99 01 03 05 07 09 11 13 15 17
$ Billions$ Billions Net Income
Net Income Adj Net Inc * Tax Benefit **
5% 8%
10%
* 2016 adjusted net income excludes non-recurring European Commission charge of $833 million.** 2017 One-time tax benefit of $173 million from the new U.S. tax law.
See appendix for supplementary information on Non-GAAP measures.
Page 13January 2018
Best‐in‐Class Operating EfficiencyCommercial Vehicle Segment Operating Margin
-9%
-6%
-3%
0%
3%
6%
9%
12%
15%
-9%
-6%
-3%
0%
3%
6%
9%
12%
15%
07 08 09 10 11 12 13 14 15 16
PACCAR Volkswagen Daimler Volvo Iveco Navistar
Page 14January 2018
Best‐in‐Class Operating Efficiency Inventory Turns
0
5
10
15
20
25
0
5
10
15
20
25
07 08 09 10 11 12 13 14 15 16
# Inventory Turns# Inventory Turns
PACCAR Volkswagen Daimler Volvo CNH Navistar
Page 15January 2018
Best‐in‐Class Operating EfficiencySG&A % of Sales
0%
5%
10%
15%
20%
0%
5%
10%
15%
20%
07 08 09 10 11 12 13 14 15 16
PACCAR Volkswagen Daimler Volvo CNH Navistar
Page 16January 2018
Net Income per Truck
0
1,250
2,500
3,750
5,000
6,250
7,500
8,750
10,000
11,250
0
20
40
60
80
100
120
140
160
180
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16*17*Trucks Net Income per Truck Adjusted Net Income Per Truck *
Units (000s) $/Truck
2016 Adj Net Income Per Truck was determined using Adj Net Income of $1,355 million, which excludes non-recurring EC charge of $833 million. 2017 Adj Net Income Per Truck was determined using Adj Net Income of $1,502 million, which excludes the one-time benefit of $173 million from the new U.S. tax law. See appendix for supplementary information on non-GAAP measures.
Page 17January 2018
PACCAR IncA+/A1 Credit Ratings
12/31/17Cash & Securities $ 3,622Manufacturing Assets 6,616Financial Services Assets 13,202Total Assets $ 23,440
Manufacturing Debt $ 0Manufacturing Liabilities 5,270Financial Services Liabilities 10,119Shareholders' Equity 8,051Total Liabilities & Equity $ 23,440
($ Millions)
Page 18January 2018
PACCAR Overview – Q4 2017
Consolidated Sales & Revenues $5.46 Billion
Net Income $589 Million; Adjusted Net Income (non‐GAAP) of $416 Million
PACCAR Financial Pre‐Tax Profit $73 Million
PACCAR Parts Record Pre‐Tax Profit $157 Million
Stockholders’ Equity $8.05 Billion
A1/A+ Credit Ratings
Regular Dividend Increased 25% in Last 5 Years
Page 19January 2018
PACCAR Revenues and Profit
($ Millions) 4TH Quarter Full Year2017 2016 2017 2016
Revenues $5,455 $4,071 $19,456 $17,033
Net Income 589 289 1,675 522Diluted EPS 1.67 0.82 4.75 1.48
Adjusted Net Income (Non‐GAAP) 416 1,502 1,355Adjusted Diluted EPS 1.18 4.26 3.85
79 consecutive years of net profit
Dividends every year since 1941
Note: See appendix for supplementary information on non-GAAP financial measures
Page 20January 2018
PACCAR Capital Allocation
• R&D and capex investments drive future growth
• Credit rating of A+/A1 reflects strategic nature of our financial services operations
• Long history of successful acquisitions; highly selective, strategic, clear path to value creation
• Quarterly plus special dividends• Strategic share repurchases
Capex$1.9
R&D$1.2
Dividend$3.0
Share Repurchase
$0.3
Finance Company
$1.2
Debt Repayment
$0.2 Increase in Cash$1.2
Uses of Cash Flow2013 – 2017: $9 Billion
Capital Allocation Strategy
Page 21January 2018
New Products and Technologies
Platooning Zero-Emission Kenworth T680
New DAF CF & XF PACCAR Powertrain
Page 22January 2018
PACCAR Investments
DAF Sales Office, Haddenham, U.K.
PACCAR Engine Factory, Columbus, Mississippi PACCAR Parts Distribution Center, Toronto, Canada
DAF Cab Paint Facility, Westerlo, Belgium
Page 23January 2018
Dividends Declared and Stock Repurchases
0
200
400
600
800
1,000
1,200
0
200
400
600
800
1,000
1,200
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
$ Millions$ Millions
Dividends Stock Repurchased
Page 24January 2018
PACCAR PR9.2 Liter
PACCAR MX‐1312.9 Liter
PACCAR PX‐76.7 Liter
PACCAR PX‐5 4.5 Liter
PACCAR Engines Worldwide
PACCAR MX‐1110.8 Liter
PACCAR PX‐98.9 Liter
Page 25January 2018
0
50
100
150
200
250
300
350
400
450
500
550
600
650
0
50
100
150
200
250
300
350
400
450
500
550
600
650
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Engines (000s)Engines (000s)
Cumulative PACCAR MX Engines Produced
KW/PB MX-13 MX-11DAF MX-13
Page 26January 2018
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
500
1,000
1,500
2,000
2,500
3,000
3,500
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
$ Millions $ Millions
PACCAR Parts Revenue
8%
Page 27January 2018
PACCAR Parts Distribution Centers and Dealers
PACCARDistributionCentersKW, PB, DAF Dealers
Page 28January 2018
PACCAR Parts Investments
Renton, Washington Brisbane, Australia
Eindhoven, the Netherlands Panama City, Panama
Page 29January 2018
PACCAR Global Dealer Network
Page 30January 2018
DAF Brasil
Page 31January 2018
Road to Autonomous Commercial Vehicles
• Anti Lock Braking
• Lane Departure Warning
• Object Detection
• Adaptive Cruise Control
Component Controls
1980‐2014
• Collision Avoidance
• Lane Keeping Assist
• Predictive Cruise Control
System Integration
2015‐2017
• Vehicle to Infrastructure Network
• Automatic Lane Change
• Automatic Routing
Automated Vehicle
2025+
Greater Vehicle Autonomy
• Improves Safety, Fuel Efficiency and Truck Utilization
• Increases Truck Content
• Increases Parts Demand
• Vehicle to Vehicle Network
• Driver Monitoring
Network Integration
2018‐2024
Page 32January 2018
Environmental Leadership
Ranked in Top 20% of Companies Reporting to CDP (Carbon Disclosure Project)
Alternative Fuel Technologies Environmental Certification (ISO 14001)
Zero Waste to Landfill Reduce Environ. Impact Through Product Design
EPA SmartWay90%+ Reduction in NOx and Particulate Emissions
Product Recyclability
Page 33January 2018
$13.2 Billion in Assets
Pre‐tax Profit $73 Million
Full Service Leasing
Dealer FloorplanRetail Financing
188,000 Vehicles Financed
PACCAR Financial Services – Q4 2017
Page 34January 2018
PACCAR Financial Services24 Countries on Four Continents
PACCAR Financial Regional Offices
Page 35January 2018
PACCAR Financial Services Assets
2007 - $10.7 Billion 2017 - $13.2 Billion
U.S. & Canada
$6.3 Billion 48%PacLease
$2.4 Billion 18%
Europe$3.2 Billion
24%U.S. & Canada
$5.0 Billion 46%
Europe$2.7 Billion
25%
Australia & Mexico$1.3 Billion
13%
PacLease$1.7 Billion
16%
Australia & Mexico$1.3 Billion
10%
Page 36January 2018
50,300 Vehicles
200 DAF Dealers
17 European Countries
PACCAR Financial Europe
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
08 09 10 11 12 13 14 15 16 17
Assets € Billions
Assets € Billions
Page 37January 2018
10
15
20
25
30
35
40
10
15
20
25
30
35
40
08 09 10 11 12 13 14 15 16 17
Trucks000’s
Trucks000’s
PACCAR Leasing
Page 38January 2018
PACCAR Financial Services Delivers Strong Performance
0
1
2
3
4
5
6
7
8
0
1
2
3
4
5
6
7
8
91 93 95 97 99 01 03 05 07 09 11 13 15 17
%%
Low 30+ Days Past Due Assets and Pretax Profit
0
50
100
150
200
250
300
350
400
0
2
4
6
8
10
12
14
16
08 09 10 11 12 13 14 15 16 17
Assets $ Billions
Pretax Profit Avg Earnings Assets
Pre-tax Profit$ Millions
Page 39January 2018
PACCAR Financial Services12/31/17
Finance & Other Receivables $9,697Equipment on Operating Leases 2,876Other Assets 629Total Financial Services Assets $13,202
Commercial Paper & Bank Loans $2,934Term Notes 5,945Deferred Taxes & Other Liabilities 1,240Total Financial Services Liabilities 10,119Equity 3,083Total Liabilities & Equity $13,202
($ Millions)
Page 40January 2018
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
Strongest Dealer Network
Profitable Financial Services
PACCAR Competitive Advantages
Page 41January 2018
AppendixReconciliation of GAAP to Non‐GAAP Financial MeasuresThis presentation includes “adjusted net income (non-GAAP)” and “adjusted net income per diluted share (non-GAAP)”, which are financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”), since they exclude the one-time tax benefit from the Tax Cuts and Jobs Act ("new U.S. tax law") in 2017 and the non-recurring European Commission charge in 2016. These measures differ from the most directly comparable measures calculated in accordance with GAAP and may not be comparable to similarly titled non-GAAP financial measures used by other companies.Management utilizes these non-GAAP measures to evaluate the Company’s performance and believes these measures allow investors and management to evaluate operating trends by excluding significant non-recurring items that are not representative of underlying operating trends.Reconciliations from the most directly comparable GAAP measures of: adjusted net income (non-GAAP) and adjusted net income per diluted share (non-GAAP) are as follows:
(in millions)
Year Ended December 31, 2017 2016
Net Income $ 1,675.2 $ 521.7
One-time tax benefit from the new U.S. tax law (173.4)
Non-recurring European Commission Charge 833.0
Adjusted Net Income (Non-GAAP) $ 1,501.8 $ 1,354.7
Year Ended December 31, 2017 2016
Per Diluted Share:
Net Income $ 4.75 $ 1.48
One-time tax benefit from the new U.S. tax law (.49)
Non-recurring European Commission Charge 2.37
Adjusted Net Income (Non-GAAP) $ 4.26 $ 3.85
(in millions)
Three Months Ended December 31, 2017
Net Income $ 589.2
One-time tax benefit from the new U.S. tax law $ (173.4)
Adjusted Net Income (Non-GAAP) $ 415.8
Three Months Ended December 31, 2017
Per Diluted Share:
Net Income $ 1.67
One-time tax benefit from the new U.S. tax law (.49)
Adjusted Net Income (Non-GAAP) $ 1.18