This presentation may contain statements that are forward · December 2016 Page 30 Road to Autonomous Commercial Vehicles • Anti Lock Braking • Lane Departure Warning • Object

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 2December 2016

Page 3December 2016

Aftermarket Support

Financial ServicesInformation Technology

Powertrain

Commercial Vehicles

Page 4December 2016

PACCAR Strategy

Premium Products and Services

Profitable Market Share Growth

Geographic Expansion

QualityQuality TechnologyTechnology InnovationInnovation

Page 5December 2016

PACCAR Values

Highest Integrity

Operational Excellence

Conservative Financial

ManagementQuality Long Term

Perspective

Page 6December 2016

Trucking Moves the EconomyIf you bought it, it probably was delivered by a truck

69%

15% 10% 6%Truck Rail Pipeline Water

% Total U.S. Freight Tonnage Hauled by Transportation Mode

Page 7December 2016

Units in ThousandsPACCAR Truck Assembly

2010 – 2.7 Million2015 – 2.5 Million2020 – 2.7 Million

2010 2015 2020

390 340

130 170

North America

South America

190

215

320

225 225

315

Africa & Middle East

EU28

235

175

276100 255 330

1280.266

845

87.1 55115

750

India201

362.7365 365200

Rest of Asia

Russia/CIS China

1520.62015 21

Australia

85

1,280

275

Global >6T Truck Markets

Page 8December 2016

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 16Fcst

Units (000s)Units 000s

US & Canada Europe South America

Page 9December 2016

PACCAR Heavy Duty Market Share

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

S. America Europe Australia U.S. and Canada Mexico

2005 2015

Page 10December 2016

>16T Truck Manufacturing2015 Production (Units 000’s)

0 50 100 150 200 250 300

DayunHualing

FordKAMaz

IsuzuJianghuai

Ashok LeylandIveco

NavistarHino

Beijing FotonShaanxi

FAWTata Motors

SinotrukDongfengPACCAR

VolkswagenVolvo

Daimler

#4

Total Production 2015 = 1.6 Million


0

20

40

60

80

100

120

140

160

180

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Brasil

Australia

Europe

Mexico

Canada

US

166,800

133,900125,900

61,000

78,800

138,000140,400

137,100

PACCAR Truck Production1.3 Million Trucks Produced 2006‐2015

142,900154,700


0150300450600750900

0150300450600750900

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

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

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

Operating Cash Flow$ Millions$ Millions$ Billions$ Billions

0

5

10

15

20

0

5

10

15

20

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

$ Billions$ Billions Revenue

0.0

0.3

0.6

0.9

1.2

1.5

1.8

0.0

0.3

0.6

0.9

1.2

1.5

1.8

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

$ Millions$ Millions Net Income

7%10%

11%


Best‐in‐Class Operating Efficiency

-9%-6%-3%0%3%6%9%12%15%

-9%-6%-3%0%3%6%9%

12%15%

06 07 08 09 10 11 12 13 14 15

CV Segment Operating Margin

PACCAR Volkswagen Daimler Volvo Iveco Navistar

-10%

0%

10%

20%

30%

40%

-10%

0%

10%

20%

30%

40%

06 07 08 09 10 11 12 13 14 15

After-Tax Return on Equity %

PACCAR Volkswagen Daimler

Volvo CNH

0%

5%

10%

15%

20%

0%

5%

10%

15%

20%

06 07 08 09 10 11 12 13 14 15

SG&A % of Sales

PACCAR Volkswagen Daimler Volvo CNH Navistar

0

5

10

15

20

25

0

5

10

15

20

25

06 07 08 09 10 11 12 13 14 15

Inventory Turns

PACCAR Volkswagen Daimler

Volvo CNH Navistar


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

90 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

Units (000s) $/Truck

Trucks Delivered Net Income per Truck


Annualized Shareholder Total Return %Fifteen Years, As of September 30, 2016

Volvo

Deere

Caterpillar

Isuzu

Volkswagen

Hino

Daimler

Toyota

Ford

Navistar

S&P 500

-5 0 5 10 15 20


PACCAR IncA+/A1 Credit Ratings

9/30/16Cash & Securities $ 2,801Manufacturing Assets 5,794Financial Services Assets 12,374Total Assets $ 20,969

Manufacturing Debt $ 0Manufacturing Liabilities 4,154Financial Services Liabilities 9,837Shareholders' Equity 6,978Total Liabilities & Equity $ 20,969

($ Millions)


PACCAR Overview – Q3 2016

Consolidated Sales & Revenues $4.25 Billion

Net Income $346 Million

PACCAR Financial Pre‐Tax Profit $71 Million

PACCAR Parts Pre‐Tax Profit $138 Million

Stockholders’ Equity $6.98 Billion

A1/A+ Credit Ratings

Regular Dividend Increased 30% in Last 5 Years

Note: See appendix for supplementary information on non-GAAP financial measures


PACCAR Revenues and Profit

($ Millions) 3rd Quarter Nine Months2016 2015 2016 2015

Revenues $4,249 $4,847 $12,963 $14,760

Adjusted Net Income (Non‐GAAP) 346 431 1,066 1,257Return on Revenue 8.1% 8.9% 8.2% 8.5%Adjusted Diluted EPS 0.98 1.21 3.03 3.53

Net Income 346 431 233 1,257Diluted EPS 0.98 1.21 0.66 3.53

Note: See appendix for supplementary information on non-GAAP financial measures

77 consecutive years of net profit

Dividends every year since 1941


PACCAR Capital Allocation

• 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

Capex$1.8

R&D$1.3

Dividend$2.5

Share Repurchase

$0.7

Finance Company

$1.0

Debt Repayment

$0.2 Increase in Cash$1.3

Uses of Cash Flow2011 – 2015: $9 Billion

Capital Allocation Strategy


New Products and Technologies

Action Plan

Automated Notification

Off-BoardDiagnostics

ResolutionFaultDetected

Remote Diagnostics


New Facility Investments

Kenworth, Chillicothe, Ohio PACCAR Parts Distribution Center, Renton, WA

Peterbilt, Denton, Texas DAF, Westerlo, Belgium


Dividends Declared and Stock Repurchases

0

200

400

600

800

1,000

1,200

0

200

400

600

800

1,000

1,200

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

$ Millions$ Millions

Dividends Stock Repurchased


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


0

50

100

150

200

250

300

350

400

450

500

0

50

100

150

200

250

300

350

400

450

500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD

Engines (000s)Engines (000s)

PACCAR MX Engines In Operation

KW/PB MX-13 MX-11DAF MX-13


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

06 07 08 09 10 11 12 13 14 15

$ Millions $ Millions

PACCAR Parts Revenue

6%


PACCAR Parts Distribution Centers and Dealers

PACCARDistributionCenters


PACCAR Parts Investments

Renton, WA Ponta Grossa, BR

Eindhoven, NL Lancaster, PA


PACCAR Global Dealer Network


Brasil India

Taiwan Russia

PACCAR Global Expansion


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 Fleets Safety, Fuel Efficiency and Truck Utilization

• Increases Truck Content

• Increases Parts Demand

• Vehicle to Vehicle Network

• Driver Monitoring

Network Integration

2018‐2024


Environmental Leadership

Ranked in Top 10% of Companies Reporting to CDP (Carbon Disclosure Project)

Reduce Environmental Impact Through Product Design

Product Recyclability90%+ Reduction in NOx and Particulate Emissions

Alternative Fuel Vehicles (Natural Gas, Hybrid)Zero Waste to Landfill

Environmental Certification (ISO 14001) EPA SmartWay


$12.4 Billion in Assets

Pre‐tax Profit $71 Million

Full Service Leasing

Dealer FloorplanRetail Financing

176,000 Vehicles Financed

PACCAR Financial Services – Q3 2016


PACCAR Financial Services23 Countries on Four Continents

PACCAR Financial Regional Offices


PACCAR Financial Services Assets

2005 - $8.4 Billion 3Q16 - $12.4 Billion

U.S. & Canada

$6.2 Billion 51%

PacLease$2.3 Billion

18%

Europe$2.7 Billion

22%U.S. &

Canada$4.6 Billion

55%

Europe$1.8 Billion

22%

Australia & Mexico$0.8 Billion

9%

PacLease$1.2 Billion

14%

Australia & Mexico$1.2 Billion

9%


45,800 Vehicles

200 DAF Dealers

16 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

06 07 08 09 10 11 12 13 14 15

Assets € Billions

Assets € Billions


10

15

20

25

30

35

40

10

15

20

25

30

35

40

06 07 08 09 10 11 12 13 14 15

Trucks000’s

Trucks000’s

564 Service Locations

37,600 Vehicles

$2.3 Billion Assets

PACCAR Leasing


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 Assets and Pretax ProfitAssets

$ BillionsPre-tax Profit

$ Millions

0

50

100

150

200

250

300

350

400

0

2

4

6

8

10

12

14

16

06 07 08 09 10 11 12 13 14 15

Pretax Profit Avg Earnings Assets


PACCAR Financial Services9/30/16

Finance & Other Receivables $9,078Equipment on Operating Leases 2,609Other Assets 687Total Financial Services Assets $12,374

Commercial Paper & Bank Loans $2,516Term Notes 6,014Deferred Taxes & Other Liabilities 1,307Total Financial Services Liabilities 9,837Equity 2,537Total Liabilities & Equity $12,374

($ Millions)


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


AppendixReconciliation 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 GAAPand 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 $ 232.9

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


Documents

This presentation may contain statements that are forward · December 2016 Page 30 Road to Autonomous Commercial Vehicles • Anti Lock Braking • Lane Departure Warning • Object