Powertrain. Aftermarket Support. Commercial Vehicles. Financial Services. Information Technology. April 2018 Page 4

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2 Page 2 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

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4 Powertrain Aftermarket Support Commercial Vehicles Page 4 Information Technology Financial Services

5 Quality PACCAR Strategy Technology Innovation Premium Products and Services Profitable Market Share Growth Geographic Expansion Page 5

6 PACCAR Values Quality Highest Integrity Operational Excellence Conservative Financial Management Long-Term Perspective Page 6

7 Trucking Moves the Economy If you bought it, it probably was delivered by a truck 8% 7% 6% 5% 4% 3% 2% 1% % 71% 13% 1% 6% Truck Rail Pipeline Water % Total U.S. Freight Tonnage Hauled by Transportation Mode Page 7

8 Global >6t Truck Market Million Million EU Russia/CIS China ,345 North America Rest of Asia South America Africa & Middle East India PACCAR Truck Assembly Units in Thousands Australia 2 24

9 >16t Truck Market Size Units (s) Units (s) US & Canada Europe South America Page 9

10 PACCAR Heavy Duty Market Share 4% 35% 3% 25% 2% 15% 1% 5% % S. America Europe Australia U.S. and Canada Mexico 4% 35% 3% 25% 2% 15% 1% 5% % Page 1

11 >16t Truck Manufacturing 217 Production (Units s) FAW Daimler Dongfeng Sinotruk Volvo Shaanxi Volkswagen PACCAR Beijing Foton Tata Motors Ashok Leyland Jianghuai Hongyan Hino Iveco KamAZ Isuzu Navistar Dayun Hualing Total Production 217 = 2.3 Million #8 Page 11

12 PACCAR Truck Production 1.3 Million Trucks Produced Units (s) Brasil Australia Mexico Canada US Europe Page 12

13 PACCAR Excellent Financial Performance Throughout the Business Cycle $ Billions Revenue $ Billions $ Billions Net Income CAGR = 5% CAGR = 8% $ Billions Net Income Adj Net Inc * Tax Benefit ** Operating Cash Flow $ Billions $ Billions CAGR = 1% Capital Investments and R&D Expenses $ Millions $ Millions Capital R&D Page 13 * 216 adjusted net income excludes non-recurring European Commission charge of $833 million. ** 217 One-time tax benefit of $173 million from the new U.S. tax law. S PACCAR 217 1K f l t i f ti N GAAP

14 Best-in-Class Operating Efficiency Commercial Vehicle Segment Operating Margin 12% 9% 6% 3% % -3% -6% -9% PACCAR Volvo Daimler Volkswagen Iveco Navistar 12% 9% 6% 3% % -3% -6% -9% Page 14

15 Best-in-Class Operating Efficiency Inventory Turns PACCAR Volvo Daimler Volkswagen CNH Navistar Page 15

16 Best-in-Class Operating Efficiency SG&A % of Sales 16% 16% 12% 12% 8% 8% 4% 4% % PACCAR Volvo Daimler Volkswagen CNH Navistar % Page 16

17 Net Income per Truck Units (s) $/Truck 11,25 1, 8,75 7,5 6,25 5, 3,75 2,5 1,25 Trucks Net Income per Truck Page 17

18 PACCAR Inc A+/A1 Credit Ratings ($ Millions) 3/31/18 Cash & Securities $ 3,472 Manufacturing Assets 6,72 Financial Services Assets 13,59 Total Assets $ 23,782 Manufacturing Debt $ Manufacturing Liabilities 4,841 Financial Services Liabilities 1,373 Shareholders' Equity 8,568 Total Liabilities & Equity $ 23,782 Page 18

19 PACCAR Overview Q1 218 Consolidated Sales & Revenues $5.65 Billion Net Income $512 Million PACCAR Financial Pre Tax Profit $68 Million PACCAR Parts Record Pre Tax Profit $192 Million Stockholders Equity $8.57 Billion A1/A+ Credit Ratings Regular Dividend Increased 25% in Last 5 Years Page 19

20 PACCAR Revenues and Profit 79 consecutive years of net profit Dividends every year since 1941 First Quarter ($ in Millions) Revenues $4,238 $5,654 Net Income $31 $512 Return on Revenues 7.3% 9.1% Diluted EPS $.88 $1.45 Number of Trucks Delivered 35, 44,5 Page 2

21 PACCAR Capital Allocation Uses of Cash Flow : $8.7 Billion Capital Allocation Strategy Debt Repayment $.2 Finance Company $.9 Share Repurchase $.3 Increase in Cash $1.2 Dividend $3. Capex $1.9 R&D $1.2 Quarterly plus special dividends Strategic share repurchases 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 Page 21

22 New Products New DAF XF and CF PACCAR Powertrain Kenworth Australia T61 Peterbilt Model 579 UltraLoft

23 Innovative Technologies Zero-Emissions Kenworth T68 DAF Connect/Truck Tech/Smart LinQ Platooning Autonomous Driving Technologies

24 PACCAR Investments DAF Sales Office, Haddenham, U.K. Dynacraft, McKinney, Texas PACCAR Engine Factories DAF Cab Paint Facility, Westerlo, Belgium

25 Dividends Declared and Stock Repurchases $ Millions 1,2 1, $ Millions 1,2 1, Dividends Stock Repurchased Page 25

26 PACCAR Engines Worldwide PACCAR PX Liter PACCAR PX Liter PACCAR PX Liter PACCAR PR 9.2 Liter PACCAR MX Liter PACCAR MX Liter Page 26

27 Cumulative PACCAR MX Engines Produced # of Engines (s) # of Engines (s) DAF MX 13 KW/PB MX 13 MX 11 Page 27

28 PACCAR Parts Revenues $ Millions 3,5 3, 2,5 2, 1,5 1, 5 CAGR = 8% $ Millions 3,5 3, 2,5 2, 1,5 1, Page 28

29 Parts Distribution Centers and Dealers PACCAR Distribution Centers KW, PB, DAF Dealers Page 29 29

30 PACCAR Parts Investments Toronto, Canada Panama City, Panama Renton, Washington Brisbane, Australia

31 PACCAR Global Dealer Network

32 DAF Brasil

33 Road to Autonomous Commercial Vehicles Component Controls System Integration Network Integration Automated Vehicle 225+ Anti Lock Braking Lane Departure Warning Object Detection Adaptive Cruise Control Autonomous Emergency Braking Predictive Cruise Control Lane Keeping Assist Traffic Jam Assist Platooning Driver Monitoring Vehicle to Infrastructure Network Automatic Lane Change Automatic Routing Greater Vehicle Autonomy Improves Fleets Safety, Fuel Efficiency and Truck Utilization Increases Truck Content Increases Parts Demand Page 33

34 Environmental Leadership Member CDP (Carbon Disclosure Project) Reduce Environmental Impact Through Product Design Product Recyclability 9%+ Reduction in NOx and Particulate Emissions Alternative Fuel Vehicles (Natural Gas, Hybrid) Zero Waste to Landfill Environmental Certification (ISO 141) EPA SmartWay

35 PACCAR Financial Services Q1 218 $13.6 Billion in Assets Pre tax Profit $68 Million 187, Vehicles Financed Dealer Floorplan Retail Financing Full Service Leasing Page 35

36 PACCAR Financial Services 24 Countries on Four Continents Bellevue Salt Lake Los Angeles Mexicali Chicago Denton Toronto Philadelphia Spartanburg Atlanta London Paris Madrid Eindhoven Warsaw Prague Milan Mexico City PACCAR Financial Regional Offices Page 36 Melbourne

37 PACCAR Financial Services Low 3+ Days Past Due Total Assets 12/31/17 = $13.2 Billion % 8 7 % 8 7 Australia & Mexico $1.3 Billion 1% Europe $3.2 Billion 24% PacLease $2.4 Billion 18% U.S. & Canada $6.3 Billion 48% Page 37

38 PACCAR Financial Europe Assets Billions 3. Assets Billions ,3 Vehicles 2 DAF Dealers European Countries Page 38

39 PACCAR Leasing Trucks (s) Trucks (s) ,9 Vehicles Locations $2.4 Billion in Assets Page 39

40 PACCAR Financial Services ($ Millions) 3/31/18 Finance & Other Receivables $1,14 Equipment on Operating Leases 2,874 Other Assets 612 Total Financial Services Assets $13,59 Commercial Paper & Bank Loans $3,234 Term Notes 5,896 Deferred Taxes & Other Liabilities 1,243 Total Financial Services Liabilities 1,373 Equity 3,217 Total Liabilities & Equity $13,59 Page 4

41 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 Page 41

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