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 Relations page of

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4 Commercial Vehicles Aftermarket Support Powertrain Information Technology Financial Services Page 3

5 >16t Truck Manufacturing 2015 Production (Units 000 s) Daimler Volvo Volkswagen PACCAR Dongfeng Sinotruk Tata Motors FAW Shaanxi Beijing Foton Hino Navistar Iveco Ashok Leyland Jianghuai Isuzu KAMaz Ford Hualing Dayun #4 Total Production 2015 = 1.6 Million Page 4

6 PACCAR Revenues and Profit 77 consecutive years of net profit Dividends every year since 1941 ($ Millions) 3 rd Quarter Nine Months Revenues $4,249 $4,847 $12,963 $14,760 Adjusted Net Income (Non GAAP) ,066 1,257 Return on Revenue 8.1% 8.9% 8.2% 8.5% Adjusted Diluted EPS Net Income ,257 Diluted EPS Note: See appendix for supplementary information on non-gaap financial measures Page 5

7 PACCAR Inc A+/A1 Credit Ratings ($ Millions) 9/30/16 Cash & Securities $ 2,801 Manufacturing Assets 5,794 Financial Services Assets 12,374 Total Assets $ 20,969 Manufacturing Debt $ 0 Manufacturing Liabilities 4,154 Financial Services Liabilities 9,837 Shareholders' Equity 6,978 Total Liabilities & Equity $ 20,969 Page 6

8 PACCAR Overview Q Consolidated Sales & Revenues $4.25 Billion $346 Million Net Income PACCAR Financial Pre Tax Profit $71 Million PACCAR Parts Pre Tax Profit $138 Million $6.98 Billion Stockholders Equity A1/A+ Credit Ratings Regular Dividend Increased Over 30% in Last 5 Years Total Dividend Yield of Over 4% Note: See appendix for supplementary information on non-gaap financial measures Page 7

9 $ Billions Revenue $ Billions PACCAR Excellent Financial Performance Throughout the Business Cycle Operating Cash Flow $ Billions $ Billions $ Millions Net Income $ Millions Capital Investments and R&D Expenses Capital R&D $ Millions $ Millions Page 8

10 Net Income per Truck Units (000s) $/Truck 11,250 10,000 8,750 7,500 6,250 5,000 3,750 2,500 1, Trucks Delivered Net Income per Truck 0 Page 9

11 Industry Operating Margin 15% 12% 9% 6% 3% 0% -3% -6% -9% PACCAR Daimler Volkswagen Volvo Iveco Navistar 15% 12% 9% 6% 3% 0% -3% -6% -9% Page 10

12 Annualized Shareholder Total Return % Fifteen Years, As of September 30, 2016 Volvo Deere Caterpillar Isuzu Volkswagen Hino Daimler S&P 500 Toyota Ford Navistar Page 11

13 Dividends Declared and Stock Repurchases $ Millions 1, $ Millions 1, Dividends Stock Repurchased Page 12

14 Quality Technology Innovation Kenworth T880 Commercial Truck of the Year 2015 Operational and Workplace Leadership Awards DAF XF U.K. Fleet Truck of the Year 2016 Fenabrave Brasil Brand of the Year 2016 Engineering and Production Technology Leadership Awards Page 13

15 New Products and Technologies Remote Diagnostics Fault Detected Off-Board Diagnostics Automated Notification Action Plan Resolution Page 14

16 New Facility Investments Westerlo Peterbilt, Denton, Texas DAF, Westerlo, Belgium Kenworth, Chillicothe, Ohio PACCAR Parts Distribution Center, Renton, WA Page 15

17 PACCAR Engines Worldwide PACCAR PX Liter PACCAR PX Liter PACCAR PX Liter PACCAR PR 9.2 Liter PACCAR MX Liter PACCAR MX Liter Page 16

18 PACCAR MX Engines In Operation Engines (000s) Engines (000s) DAF MX-13 KW/PB MX-13 DAF MX-11 Page 17

19 Heavy Duty Commercial Vehicles Units 000s 350 Units (000s) Fcst US & Canada Europe South America 0 Page 18

20 PACCAR Heavy Duty Market Share 45% 45% 40% 40% 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% S. America Europe Australia U.S. and Canada Mexico 0% Page 19

21 PACCAR Truck Production 1.3 Million Trucks Produced , , , , , , , ,100 Brasil 120 Australia ,000 78, Europe Mexico Canada US Page 20

22 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, Page 21

23 PACCAR Parts Distribution Centers and Dealers PACCAR Distribution Centers Page 22

24 PACCAR Parts Investments Eindhoven, NL Lancaster, PA Renton, WA Ponta Grossa, BR Page 23

25 PACCAR Global Dealer Network Page 24

26 $ Millions 500 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 25

27 Global >6T Truck Markets Million Million Million EU28 Russia/CIS China , North America Rest of Asia South America Africa & Middle East India Australia PACCAR Truck Assembly Units in Thousands Page 26

28 PACCAR Global Expansion Taiwan Russia Brasil India Page 27

29 Environmental Leadership Member CDP (Carbon Disclosure Project) Reduce Environmental Impact Through Product Design Product Recyclability 90%+ Reduction in NOx and Particulate Emissions Alternative Fuel Vehicles (Natural Gas, Hybrid) Zero Waste to Landfill Environmental Certification (ISO 14001) EPA SmartWay Page 28

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31 PACCAR Financial Services Q $12.4 Billion in Assets $71 Million Pre tax Profit 176,000 Vehicles Financed Dealer Floorplan Retail Financing Full Service Leasing Page 30

32 PACCAR Financial Services Bellevue Salt Lake City Mexicali Toronto Chicago Philadelphia Denton Spartanburg Atlanta Eindhoven London Paris Madrid Freshen, Germany Warsaw Prague Milan Mexico City PACCAR Financial Regional Offices Melbourne Page 31

33 PACCAR Financial Services Assets Australia & Mexico $0.8 Billion 9% Australia & Mexico $1.2 Billion 9% PacLease $1.2 Billion 14% Europe $1.8 Billion 22% U.S. & Canada $4.6 Billion 55% Europe $2.7 Billion 22% PacLease $2.3 Billion 18% U.S. & Canada $6.2 Billion 51% $8.4 Billion 3Q16 - $12.4 Billion Page 32

34 Assets Billions 3.0 PACCAR Financial Europe Assets Billions ,800 Vehicles DAF Dealers European Countries Page 33

35 PACCAR Leasing Trucks 000 s 40 Trucks 000 s Service Locations ,600 Vehicles $2.3 Billion Assets Page 34

36 PACCAR Financial Services Delivers Strong Performance Low 30+ Days Past Due % % Assets $ Billions Assets and Pre tax Profit Pre-tax Profit $ Millions Avg. Earning Assets Pre-tax Profit Page 35

37 PACCAR Financial Services ($ Millions) 9/30/16 Finance & Other Receivables $9,078 Equipment on Operating Leases 2,609 Other Assets 687 Total Financial Services Assets $12,374 Commercial Paper & Bank Loans $2,516 Term Notes 6,014 Deferred Taxes & Other Liabilities 1,307 Total Financial Services Liabilities 9,837 Equity 2,537 Total Liabilities & Equity $12,374 Page 36

38 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 37

39 Appendix Reconciliation of Non GAAP to GAAP Financial Measures This 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 non-recurring European Commission charge. 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 a significant non-recurring charge that is not representative of underlying operating trends. Reconciliations of adjusted net income (non-gaap) and adjusted net income per diluted share (non-gaap) to the most directly comparable GAAP measures are as follows: Nine Months Ended (in millions) September 30, 2016 Adjusted Net Income (Non-GAAP) $ 1,065.9 Non-recurring European Commission Charge (833.0) Net Income $ Nine Months Ended September 30, 2016 Per Diluted Share: Adjusted Net Income (Non-GAAP) $ 3.03 Non-Recurring European Commission Charge (2.37) Net Loss $ 0.66 Page 38

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