Paccar Inc. · NASDAQ:PCAR
Paccar — Q1 2015 Earnings Presentation
36 slides from Paccar's earnings presentation, May 2015
Slide 1: PACCAR
PACCAR ..
Slide 2: Forward-looking statements disclaimer
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
Slide 3: May 2015 Page 2
May 2015 Page 2
Slide 4: PACCAR divisions and operations
PACCAR.. ff DAE PACCARFINANCIAL PACCARPARTS rl PACCAR MEXICO PACCARENGINES Fam a at Div vision LEYLAND TRUCKS S PACCAR WINCH DIVISION BRADEN carco Gearmatic PAICCAIR TECHNICAL CENTER 7) Kenworth DYNACGRAFT. Australia —* »acem May 2015
Slide 5: >16T Truck Manufacturing
>16T Truck Manufacturing 2014 Production (Units 000s) Daimler Volvo Volkswagen Dongfeng PACCAR #5 Sinotruk FAW Beijing Foton Shaanxi Tata Motors Hino Navistar Jianghuai KamAZ Isuzu Iveco Ashok Leyland Total Production 2014 = Hongyan 1.8 Million Hualing Ford 0 50 100 150 200 250 May 2015 Page 4
Slide 6: PACCAR Revenues and Profit
PACCAR Revenues and Profit 76 consecutive years of net profit Dividends every year since 1941 ($ Millions) 1st Quarter Full Year 2015 2014 2014 2013 Revenues $4,833 $4,380 $18,997 $17,124 Net Income 378 274 1,359 1,171 Diluted EPS 1.06 0.77 3.82 3.30 May 2015 Page 5
Slide 7: PACCAR Inc balance sheet
PACCAR Inc A+/A1 Credit Ratings ($ Millions) 3/31/15 Cash & Securities $2,715 Manufacturing Assets 5,774 Investment in Financial Services 2,355 Total Assets $10,844 Manufacturing Debt $0 Manufacturing Liabilities 4,112 Shareholders' Equity 6,732 Total Liabilities & Equity $10,844 May 2015 Page 6
Slide 8: PACCAR Overview – Q1 2015
PACCAR Overview – Q1 2015 Consolidated Sales & Revenues $4.83 Billion $378 Million Net Income PACCAR Financial Pre-Tax Profit $89 Million PACCAR Parts Pre-Tax Profit $139 Million $6.73B Stockholders’ Equity A1/A+ Credit Ratings Shareholder Return of 18% in 2014 Regular Dividend More than Doubled in
Slide 9: Excellent Financial Performance Throughout the Business Cycle
PACCAR Excellent Financial Performance Throughout the Business Cycle $ Billions Revenue $ Billions $ Millions Net Income $ Millions 20 20 1,500 1,500 16 16 1,200 1,200 12 12 900 900 8 8 600 600 4 4 300 300 0 0 0 0 05 06 07 08 09 10 11 12 13 14 05 06 07 08 09 10 11 12 13 14 Operating Cash Flow Capita
Slide 10: Annualized Shareholder Total Return %
Annualized Shareholder Total Return % Fifteen Years, As of March 31, 2015 Hino Deere Caterpillar Volvo Isuzu Honda Daimler Toyota S&P 500 Ford Navistar -5 0 5 10 15 20 May 2015 Page 9
Slide 11: Quality Technology Innovation
Quality Technology Innovation Automotive News PACE Innovation Partnership Award 2014 Kenworth T880 - Commercial Truck of the Year 2015 Operational and Workplace Leadership Awards DAF XF Euro 6 – 2014 Fleet Truck of the Year in the U.K. GreenFleet Vehicle Manufacturer of the Year 2014 Engineering and
Slide 12: Commercial Vehicles, Aftermarket Support, Powertrain
Commercial Vehicles Aftermarket Support Powertrain Information Technology Financial Services May 2015 Page 11
Slide 13: Heavy Duty Commercial Vehicles
Heavy Duty Commercial Vehicles Units (000s) Units 000s Units (000s) 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 97 99 01 03 05 07 09 11 13 15 Fcst US & Canada Europe South America May 2015 Page 12
Slide 14: New Products and Technologies
New Products and Technologies Fault Off-Board Automated Action Resolution Detected Diagnostics Notification Plan May 2015 Page 13
Slide 15: New Facility Investments
New Facility Investments • Westerlo DAF, Ponta Grossa, Brasil DAF, Westerlo, Belgium Kenworth, Chillicothe, Ohio Tech Center, Mt. Vernon, WA May 2015 Page 14
Slide 16: PACCAR Engines Worldwide
PACCAR Engines Worldwide PACCAR PX-5 PACCAR PX-7 PACCAR PX-9 4.5 Liter 6.7 Liter 8.9 Liter PACCAR PR PACCAR MX-11 PACCAR MX-13 9.2 Liter 10.8 Liter 12.9 Liter May 2015 Page 15
Slide 17: PACCAR MX Engines In Operation
PACCAR MX Engines In Operation Engines (000s) Engines (000s) 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 DAF MX-13 KW/PB MX-13 DAF MX-11 May 2015 Page 16
Slide 18: Heavy Duty Market Share
PACCAR Heavy Duty Market Share 50% 50% 45% 45% 40% 40% 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% S. America Europe Australia U.S. Canada Mexico 2004 2014 May 2015 Page 17
Slide 19: PACCAR Parts Revenue
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 1,000 500 500 0 0 05 06 07 08 09 10 11 12 13 14 May 2015 Page 18
Slide 20: Parts Distribution Centers and Dealers
PACCAR Parts Distribution Centers and Dealers PACCAR Distribution Centers May 2015 Page 19
Slide 21: Parts Investments
PACCAR Parts Investments Eindhoven, NL Lancaster, PA Renton, WA Ponta Grossa, BR May 2015 Page 20
Slide 22: Global Dealer Network
PACCAR Global Dealer Network May 2015 Page 21
Slide 23: Rigorous Cost Control
Rigorous Cost Control $ Millions SG&A % 500 5 400 4 300 3 200 2 05 06 07 08 09 10 11 12 13 14 Dollars % to Sales • Reliability • Efficiency • Eliminate Defects • Fast & Easy Assembly • Productivity • Reduce Variation • Robust Design • Streamlined Processes • Consistent Performance May 2015 Page 22
Slide 24: Supplier partners salute
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. May 2015 Page 23
Slide 25: >6t Regional Truck Market Growth
>6t Regional Truck Market Growth Russia/CIS Europe 175 95 305 370 China 14% Growth 990 1,010 North 4% Growth America 475 505 1% Growth India 0% Growth 365 215 Africa & Australia Latin America Middle East 185 200 11% Growth 21 26 195 240 2% Growth 4% Growth 4% Growth Rest of Asia 280 320 >6t Global M
Slide 26: Taiwan Russia Brasil
Taiwan Russia Brasil India May 2015 Page 25
Slide 27: May 2015 Page 26
PACCAR... Page 26 May 2015
Slide 28: Financial Services – Q1 2015
PACCAR Financial Services – Q1 2015 $11.8 Billion in Assets $89 Million Pretax Profit 168,000 Vehicles Financed 50,000 Customers Dealer Floorplan Retail Financing Full Service Leasing May 2015 Page 27
Slide 29: Financial Services Competitive Advantages
PACCAR Financial Services Competitive Advantages A+/A1 Credit Ratings Quality Portfolio Technology Leadership May 2015 Page 28
Slide 30: Financial Services Assets
PACCAR Financial Services Assets 20% Australia 23% PacLease Australia Europe & Mexico Europe & Mexico PacLease 13% 10% 10% 20% US & Canada 53% US & Canada 50% 2004 - $7.0 Billion 1Q15 - $11.8 Billion May 2015 Page 29
Slide 31: Financial Europe
PACCAR Financial Europe Trucks Trucks 000’s 000’s 50 50 40 40 30 30 20 20 $2.3 Billion in Assets 10 10 200 DAF Dealers 0 0 15 European Countries 05 06 07 08 09 10 11 12 13 14 May 2015 Page 30
Slide 32: Leasing
PACCAR Leasing Trucks Trucks 000’s 000’s 40 40 35 35 30 30 25 25 20 20 560 Service Locations 15 15 38,000 Vehicles 10 10 05 06 07 08 09 10 11 12 13 14 $2.4 Billion Assets May 2015 Page 31
Slide 33: Financial Services Delivers Strong Performance
PACCAR Financial Services Delivers Strong Performance Low 30+ Days Past Due Assets and Pretax Profit Assets Pretax Profit % % $ Billions $ Millions 8 8 16 400 7 7 14 350 6 6 12 300 5 5 10 250 4 4 8 200 3 3 6 150 2 2 4 100 1 1 2 50 0 0 0 0 90 92 94 96 98 00 02 04 06 08 10 12 14 05 06 07 08 09 10 11 1
Slide 34: Financial Services balance sheet
PACCAR Financial Services ($ Millions) 3/31/15 Finance & Other Receivables $8,928 Equipment on Operating Leases 2,256 Other Assets 654 Total Financial Services Assets $11,838 Commercial Paper $2,175 Term Notes & Bank Loans 6,000 Deferred Taxes & Other Liabilities 1,308 Total Financial Services Liabi
Slide 35: PACCAR Competitive Advantages
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 Financia
Slide 36: May 2015 Page 35
PACCAR... May 2015 Page 35