This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are

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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 Resources page of

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5 >16T Truck Manufacturing 214 Production (Units s) 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 214 = 1.8 Million Page 4

6 PACCAR Revenues and Profit 76 consecutive years of net profit Dividends every year since 1941 ($ Millions) 3rd Quarter 9 Months Revenues $4,847 $4,928 $14,76 $13,878 Net Income , Diluted EPS Page 5

7 PACCAR Inc A+/A1 Credit Ratings ($ Millions) 9/3/15 Cash & Securities $3,451 Manufacturing Assets 5,711 Investment in Financial Services 2,432 Total Assets $11,594 Manufacturing Debt $ Manufacturing Liabilities 4,25 Shareholders' Equity 7,344 Total Liabilities & Equity $11,594 Page 6

8 PACCAR Overview Q3 215 Consolidated Sales & Revenues $4.85 Billion $431 Million Net Income PACCAR Financial Pre-Tax Profit $93 Million PACCAR Parts Pre-Tax Profit $145 Million $7.34 Billion Stockholders Equity A1/A+ Credit Ratings Regular Dividend Increased over 165% in Last 5 Years Shareholder Return of 18% in 214 Page 7

9 PACCAR Excellent Financial Performance Throughout the Business Cycle Revenue ,5 1, Capital Investments and R&D Expenses Capital Net Income $ Billions $ Billions $ Millions $ Millions $ Millions 2,4 2, 1,6 1,2 8 4 Operating Cash Flow YTD YTD $ Millions 2,4 2, 1,6 1,2 8 4 $ Millions R&D YTD YTD 1,5 1, $ Millions Page 8

10 Quality Technology Innovation Automotive News PACE Innovation Partnership Award 214 Kenworth T88 - Commercial Truck of the Year 215 Operational and Workplace Leadership Awards DAF XF Euro Fleet Truck of the Year in the U.K. GreenFleet Vehicle Manufacturer of the Year 214 Engineering and Production Technology Leadership Awards Page 9

11 Commercial Vehicles Aftermarket Support Powertrain Information Technology Financial Services Page 1

12 Heavy Duty Commercial Vehicles Units (s) Units (s) US & Canada Europe South America Fcst Page 11

13 New Products and Technologies Fault Detected Off-Board Diagnostics Automated Notification Action Plan Resolution Page 12

14 New Facility Investments Westerlo DAF, Ponta Grossa, Brasil DAF, Westerlo, Belgium Kenworth, Chillicothe, Ohio Tech Center, Mt. Vernon, WA Page 13

15 PACCAR Engines Worldwide PACCAR PX Liter PACCAR PX Liter PACCAR PX Liter PACCAR PR 9.2 Liter PACCAR MX Liter PACCAR MX Liter Page 14

16 PACCAR MX Engines In Operation Engines (s) Engines (s) DAF MX-13 KW/PB MX-13 DAF MX-11 Page 15

17 PACCAR Heavy Duty Market Share 5% 45% 4% 35% 3% 25% 2% 15% 1% 5% % S. America Europe Australia U.S. Canada Mexico 5% 45% 4% 35% 3% 25% 2% 15% 1% 5% % Page 16

18 PACCAR Parts Revenue $ Millions $ Millions 3,5 3,5 3, 3, 2,5 2,5 2, 2, 1,5 1,5 1, 1, Page 17

19 PACCAR Parts Distribution Centers and Dealers PACCAR Distribution Centers Page 18

20 PACCAR Parts Investments Eindhoven, NL Lancaster, PA Renton, WA Ponta Grossa, BR Page 19

21 PACCAR Global Dealer Network Page 2

22 $ Millions 5 Rigorous Cost Control SG&A % Dollars % to Sales 2 Reliability Fast & Easy Assembly Robust Design Efficiency Productivity Streamlined Processes Eliminate Defects Reduce Variation Consistent Performance Page 21

23 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. Page 22

24 >6t Regional Truck Market Growth Europe Russia/CIS % Growth China North America 5% Growth % Growth India -1% Growth Latin America Africa & Middle East % Growth Australia % Growth 4% Growth Rest of Asia % Growth Growth Rate is Annualized Units in Thousands 2% Growth >6t Global Market Size Million Million Page 23

25 Taiwan Russia Brasil India Page 24

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27 PACCAR Financial Services Q3 215 $12.4 Billion in Assets $93 Million Pre-tax Profit 174, Vehicles Financed 5, Customers Dealer Floorplan Retail Financing Full Service Leasing Page 26

28 PACCAR Financial Services Competitive Advantages A+/A1 Credit Ratings Quality Portfolio Technology Leadership Page 27

29 PACCAR Financial Services Assets Australia 4% Mexico 6% Europe 23% PacLease 13% Australia 4% Mexico 6% Europe 2% PacLease 19% US & Canada 54% US & Canada 51% 24 - $7. Billion 3Q15 - $12.3 Billion Page 28

30 PACCAR Financial Services Delivers Strong Performance Low 3+ Days Past Due Assets and Pre-tax Profit % % Assets $ Billions Pre-tax Profit $ Millions YTD YTD Avg. Earning Assets Pre-tax Profit Page 29

31 PACCAR Financial Services ($ Millions) 9/3/15 Finance & Other Receivables $9,38 Equipment on Operating Leases 2,397 Other Assets 653 Total Financial Services Assets $12,358 Commercial Paper & Bank Loans $2,536 Term Notes 6,144 Deferred Taxes & Other Liabilities 1,246 Total Financial Services Liabilities 9,926 Equity 2,432 Total Liabilities & Equity $12,358 Page 3

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33 PACCAR Mexico Overview YTD Q3 215 $1,252 Million in Revenues $78 Million Pretax Profit Strong Cash Flow Profitable Throughout the Business Cycle Strongest Dealer Network No Manufacturing Debt $583 Million of Stockholder s Equity Comprehensive Package of Financial Services Page 32

34 Excellent Financial Performance Throughout the Business Cycle Revenue $ Billions $ Billions YTD $79 Million Cumulative Net Income from 26 to Q3 Net Income $ Millions $ Millions Stockholders Equity $ Millions $ Millions YTD YTD Q Q Page 33

35 Mexican Truck Market Units 4, 35, 3, 25, 2, 15, 1, 5, Fcst Tractor Trucks Heavy Duty Trucks Medium Duty Trucks Units 4, 35, 3, 25, 2, 15, 1, 5, Page 34

36 PACCAR Mexico - Truck Sales Production 2, Units Per Day 1 15, 75 1, 5 5, 25 Total Units Sold Fcst Domestic Latin America North America Avg. Build Rate 15,32 17,11 14,51 5,98 1,52 16,46 19,83 15,26 14,46 17,4 Page 35

37 PACCAR Financial Mexico Overview Pretax profit $2 Million YTD Q3 215 $511 Million in Assets at September 3, 215 Over 13,295 units in Portfolio Excellent Capital Market Access New Business Volume of $244 Million YTD Q3 215 Finance Market Share of 34% YTD Q3 215 Diverse products in pesos: Finance Leases, Direct Loans and Full Service Leasing Page 36

38 USD Millions PACCAR Financial Mexico Delivers Strong Performance Pre-Tax Profit Credit Loss Reserve Reserve % to Total Portfolio YTD Q3 Assets and Pretax Profit (USD Millions) % 8 Assets YTD Pre-Tax Income Avg Earning Assets Q Past Due % % YTD Q Page 37

39 PACCAR Financial Mexico Income Statement ($ Millions) 215 YTD Revenues $ 42 Interest, Depreciation and Other (15) General and Administrative Expenses (5) Loss Reserve (2) Income Before Taxes 2 Income Taxes (7) Net Income $ 13 Page 38

40 PACCAR Financial Mexico Balance Sheet ($ Millions) 9/3/15 Finance & Other Receivables $ 399 Fixed Assets (EOL) 67 Other Assets 45 Total Assets $ 511 Commercial Paper $ 58 Term Notes & Bank Loans 183 Intercompany 124 Deferred Taxes & Other Liabilities 17 Total Liabilities 382 Equity 129 Total Liabilities and Equity $ 511 Page 39

41 USD Millions PACCAR Financial Mexico Earning Assets & Debt YTD Earning Assets Debt USD Millions Diversified Funding Sources Currency and Interest Rate Risk Hedged Matched Funding Conservative Debt to Equity Ratio of 2.5:1 Page 4

42 MXN Millions PACCAR Financial Mexico Term Debt Maturity Profile MXN Millions 1,4 1,4 1,2 1,2 1, 989 1,5 1, Page 41

43 PACCAR Financial Mexico Debt Sources Public Debt Dual Program NAFIN Short Term Portion Long Term Portion Size Mx$5. Billion Mx$1. Billion Mx$3.4 Billion Ratings S&P mxa-1+ S&P mxaaa Fitch F1+ (mex) Fitch AAA (mex) Use Working Capital Extend Maturity Profile Diversify Funding Sources Support PACCAR Inc s Keep Well Agreement with PACCAR Financial Mexico Covenants: 1% Stock Ownership, Tangible Net Worth and Liquidity Maintenance $195. Million Available through Committed Syndicated Bank Facilities Page 42

44 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 43

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