this presentation may contain statements that are forward · 2018. 7. 24. · this presentation may...
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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 Resources page of www.paccar.com.
Page 2July 2015
Page 3July 2015
Page 4July 2015
>16T Truck Manufacturing2014 Production (Units 000s)
0 50 100 150 200 250
FordHualing
HongyanAshok Leyland
IvecoIsuzu
KamAZJianghuai
NavistarHino
Tata MotorsShaanxi
Beijing FotonFAW
SinotrukPACCAR
DongfengVolkswagen
VolvoDaimler
#5
Total Production 2014 = 1.8 Million
Page 5July 2015
PACCAR Revenues and Profit
($ Millions) 2nd Quarter 1st Half2015 2014 2015 2014
Revenues $5,080 $4,570 $9,913 $8,950
Net Income 447 319 826 593
Diluted EPS 1.26 0.90 2.32 1.67
76 consecutive years of net profit
Dividends every year since 1941
Page 6July 2015
PACCAR IncA+/A1 Credit Ratings
6/30/15Cash & Securities $3,275Manufacturing Assets 5,841Investment in Financial Services 2,422Total Assets $11,538
Manufacturing Debt $0Manufacturing Liabilities 4,319Shareholders' Equity 7,219Total Liabilities & Equity $11,538
($ Millions)
Page 7July 2015
PACCAR Overview – Q2 2015
Consolidated Sales & Revenues $5.08 Billion
$447 Million Net Income
PACCAR Financial Pre‐Tax Profit $91 Million
PACCAR Parts Pre‐Tax Profit $146 Million
$7.22 Billion Stockholders’ Equity
A1/A+ Credit Ratings
Regular Dividend Increased over 165% in Last 5 Years
Shareholder Return of 18% in 2014
Page 8July 2015
0150300450600750900
0150300450600750900
06 07 08 09 10 11 12 13 14 15
Capital R&D
Capital Investments and R&D Expenses
PACCARExcellent Financial Performance Throughout the Business Cycle
0
4
8
12
16
20
0
4
8
12
16
20
06 07 08 09 10 11 12 13 14 15
Revenue
0
300
600
900
1,200
1,500
0
300
600
900
1,200
1,500
06 07 08 09 10 11 12 13 14 15
Net Income
04008001,2001,6002,0002,400
0400800
1,2001,6002,0002,400
06 07 08 09 10 11 12 13 14 15
Operating Cash Flow
$ Billions$ Billions $ Millions$ Millions
$ Millions$ Millions$ Millions$ Millions
YTD YTD
YTD YTD
Page 9July 2015
Annualized Shareholder Total Return %Fifteen Years, As of June 30, 2015
Caterpillar
Deere
Volvo
Hino
Isuzu
Honda
Daimler
Toyota
S&P 500
Ford
Navistar
-5 0 5 10 15 20
Page 10July 2015
QualityQuality TechnologyTechnology InnovationInnovation
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
Automotive News PACE Innovation Partnership Award 2014
Kenworth T880 - Commercial Truck of the Year 2015
Operational and Workplace Leadership Awards
Page 11July 2015
Commercial Vehicles Aftermarket Support
Financial ServicesInformation Technology
Powertrain
Page 12July 2015
Heavy Duty Commercial Vehicles
0
50
100
150
200
250
300
350
0
50
100
150
200
250
300
350
97 99 01 03 05 07 09 11 13 15
Units (000s)Units 000s
US & Canada Europe South America
15Fcst
Units (000s)
Page 13July 2015
New Products and Technologies
Action Plan
Automated Notification
Off-BoardDiagnostics
ResolutionFaultDetected
Page 14July 2015
New Facility Investments
• Westerlo
DAF, Ponta Grossa, Brasil
Kenworth, Chillicothe, Ohio Tech Center, Mt. Vernon, WA
DAF, Westerlo, Belgium
Page 15July 2015
PACCAR PR
9.2 Liter
PACCAR MX‐13
12.9 Liter
PACCAR PX‐7
6.7 Liter
PACCAR PX‐5
4.5 Liter
PACCAR Engines Worldwide
PACCAR MX‐11
10.8 Liter
PACCAR PX‐9
8.9 Liter
Page 16July 2015
0
50
100
150
200
250
300
350
400
0
50
100
150
200
250
300
350
400
2006 2007 2008 2009 2010 2011 2012 2013 2014
Engines (000s)Engines (000s)
PACCAR MX Engines In Operation
KW/PB MX-13 DAF MX-11DAF MX-13
Page 17July 2015
PACCAR Heavy Duty Market Share
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
S. America Europe Australia U.S. Canada Mexico
2004 2014
Page 18July 2015
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
05 06 07 08 09 10 11 12 13 14
$ Millions $ Millions
PACCAR Parts Revenue
Page 19July 2015
PACCARDistributionCenters
PACCAR Parts Distribution Centers and Dealers
Page 20July 2015
Eindhoven, NL Lancaster, PA
Ponta Grossa, BR
PACCAR Parts Investments
Renton, WA
Page 21July 2015
PACCAR Global Dealer Network
Page 22July 2015
Rigorous Cost Control
2
3
4
5
200
300
400
500
05 06 07 08 09 10 11 12 13 14
%$ Millions
Dollars % to Sales
SG&A
• Efficiency
• Productivity
• Streamlined Processes
• Reliability
• Fast & Easy Assembly
• Robust Design
• Eliminate Defects
• Reduce Variation
• Consistent Performance
Page 23July 2015
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 24July 2015
210350
305
1,015
475 500
200 210190 225
95 160
2014 2019
Units in Thousands
>6t Global Market Size
2014 – 2.8 Million2019 – 3.2 Million
990
375
North America
Latin AmericaAfrica &
Middle East
Europe
India1% Growth
1% Growth
4% Growth
11% Growth
0% Growth
11% Growth
3% Growth320 355
2% Growth
Rest of Asia
Growth Rate is Annualized 2014‐2019
Russia/CIS
China
20 22
2% Growth
Australia
>6t Regional Truck Market Growth
Page 25July 2015
Taiwan Russia
IndiaBrasil
Page 26July 2015
Page 27July 2015
PACCAR Financial Services – Q2 2015
$12.3 Billion in Assets
$91 Million Pre‐tax Profit
Full Service Leasing
Dealer FloorplanRetail Financing
171,000 Vehicles Financed50,000 Customers
Page 28July 2015
PACCAR Financial ServicesCompetitive Advantages
A+/A1 Credit Ratings
Quality Portfolio
Technology Leadership
Page 29July 2015
PACCAR Financial Services Assets
2004 - $7.0 Billion
US & Canada53%
EuropeAustralia & Mexico
2Q15 - $12.3 Billion
PacLease13%
10%
US & Canada50%
20%EuropeAustralia
& Mexico10%
PacLease20%
23%
Page 30July 2015
0
10
20
30
40
50
0
10
20
30
40
50
05 06 07 08 09 10 11 12 13 14
$2.5 Billion in Assets
200 DAF Dealers
15 European Countries
Trucks000’s
Trucks000’s
PACCAR Financial Europe
Page 31July 2015
10
15
20
25
30
35
40
10
15
20
25
30
35
40
05 06 07 08 09 10 11 12 13 14
Trucks000’s
Trucks000’s
564 Service Locations
38,000 Vehicles
$2.4 Billion Assets
PACCAR Leasing
Page 32July 2015
PACCAR Financial Services Delivers Strong Performance
0
1
2
3
4
5
6
7
8
0
1
2
3
4
5
6
7
8
91 93 95 97 99 01 03 05 07 09 11 13 15
% %
Low 30+ Days Past Due
0
2
4
6
8
10
12
14
16
05 06 07 08 09 10 11 12 13 14 150
50
100
150
200
250
300
350
400
Assets and Pre‐tax Profit
Assets$ Billions
Pre-tax Profit$ Millions
Pre-tax ProfitAvg. Earning Assets
YTDYTD
Page 33July 2015
PACCAR Financial Services6/30/15
Finance & Other Receivables $9,313Equipment on Operating Leases 2,369Other Assets 617Total Financial Services Assets $12,299
Commercial Paper $2,656Term Notes & Bank Loans 5,914Deferred Taxes & Other Liabilities 1,308Total Financial Services Liabilities 9,878Equity 2,421Total Liabilities & Equity $12,299
($ Millions)
Page 34July 2015
PACCAR Competitive AdvantagesExcellent 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
Page 35July 2015