PACCAR Inc. · NASDAQ:PCAR
PACCAR — Investor Day (June 2022)
110 slides from PACCAR's investor day presentation, Jun 1, 2022
Slide 1: Ken Hastings, Director of Investor Relations
Ken Hastings Director of Investor Relations
Slide 2: PACCAR Inc
PACCAR Inc PACCAR Investor Conference presentations 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 uncertainti
Slide 3: Preston Feight, Chief Executive Officer
Preston Feight Chief Executive Officer
Slide 4: 83 Years of Consecutive Profitability
83 Years of Consecutive Profitability 2021 Revenue: $23.5B 2021 Net Income: $1.85B Truck Segment Aftermarket Parts Financial Services 72% 21% 7%
Slide 5: Profitable Growth
PACCAR Strategy Quality Technology Innovation Brand Values Premium Products and Services Profitable Growth Profitable Market Share Growth Business Expansion
Slide 6: $4.2B Invested Over 5 Years
$4.2B Invested Over 5 Years PACCAR Engine Factory Louisville Parts Dist. Center PFE Used Truck Center Madrid Australia Truck Factory DAF Westerlo Truck Factory KW Chillicothe Truck Factory
Slide 7: Ready For The Future
Ready For The Future Battery Electric Trucks Hydrogen Powered Trucks Global Connected Services Autonomous Vehicles
Slide 8: PACCAR Parts: Record Profit 2021 $1.1B
PACCAR Parts Revenue Record Profit 2021 $1.1B Revenue $ Millions $ Millions 6,000 6,000 5,500 5,500 5,000 5,000 4,500 4,500 4,000 4,000 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 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
Slide 9: PACCAR Financial Services: Record Profit 2021 $438M
PACCAR Financial Services Record Profit 2021 $438M Financing, Zero Emissions Trucks as Full-Service Lease Trucks and and Rental a Service Autonomy
Slide 10: Environmental, Social & Governance Leadership
Environmental, Social & Governance Leadership CDP “A” Rating Science Based Targets PACCAR 35%/25% Achieved an CO2 Reduction “A” rating by 2030 Best in Class OSHA Recordable Score Sustainalytics and S&P ESG Rating 8 7 6 5 4 Top Quartile of 3 2 Machinery Companies 1 0 2011 2012 2013 2014 2015 2016 201
Slide 11: Top Company for Women to Work
43 DIVERSITY & INCLUSION soa CONGRATULA),. it Top Company for Women to Work | HIE INFORMATION OFFicg, ‘ LILY LEY PACH R Inc 9021 INFLUENTIAL Wome W ENGINES ® TRUCKING WINNER KENWORTH PACE: PACCAR PARTS PCAR NasdaaL sted Nasdaq r
Slide 12: Global Economy
Global Economy US GDP Growth EU GDP Growth 6% 6% 6% 6% 4% 4% 4% 4% 2% 2% 2% 2% 0% 0% 0% 0% -2% -2% -2% -6.5% -2% -4% -4% -4% -4% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Brasil GDP Growth Australia GDP Growth 6% 6% 6% 6% 4% 4% 4% 4% 2% 2% 2% 2% 0% 0% 0% 0% -2% -2% -2% -2% -4% -4%
Slide 13: Freight Economy
Freight Economy Utilization % Truck Utilization Utilization % Tons (M) Class 8 Tonnage Tons (M) 100 100 1,200 1,200 95 95 1,160 1,160 90 90 1,120 1,120 85 85 1,080 1,080 80 80 1,040 1,040 75 75 70 70 1,000 1,000 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Truck Utilization Class 8 Tr
Slide 14: >16t Truck Market Size Outlook
>16t Truck Market Size Outlook Units (000s) Units (000s) 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 US & Canada Europe South America
Slide 15: Stronger for Longer
Stronger for Longer Elevated Truck Age Supply Chain Disruptions Strong Backlog Elevated Consumer Spending Infrastructure Bill Record Fuel Prices
Slide 16: >16t Global Truck Market Profit Pool 2021
>16t Global Truck Market Profit Pool 2021 Europe % of Global Profit Pool: 28% China % of Global Profit Pool: 16% North America % of Global Profit Pool: 37% India % of Global Profit Pool : 1% South America % of Global Profit Pool: 4% Australia % of Global Profit Pool : 3%
Slide 17: Net Income per Truck
Net Income per Truck Truck Units (000s) $/Truck 200 14,000 Future Trends 175 12,250 • Increased Content • Parts Sales Growth 150 10,500 • PACCAR Financial • Autonomous Systems 125 8,750 • Zero Emissions Vehicles 100 7,000 • Connected Services 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Trucks
Slide 18: The Future is Now
The Future is Now
Slide 19: Mike Dozier, Senior Vice President
Mike Dozier Senior Vice President
Slide 20: New Products
New Products
Slide 21: Slide 21
Slide 22: Slide 22
Slide 23: Slide 23
Slide 24: On Highway
On Highway • Performance-Focused Technology Integration • Class Leading Safety, Efficiency & Driver Comfort • Excellent Resale Values • Lowest Total Cost of Ownership
Slide 25: Vocational
Vocational • Market Leader in the Vocational Segment • Coverage of a Wide Variety of Applications • Outstanding Reliability & Durability • Segment Leading Performance
Slide 26: Medium-Duty
Medium-Duty • Full Range of Class 5 – 7 Configurations • Versatile Conventional and Cabover Products • Extensive Application Coverage • Industry Leading Driver Comfort & Performance Features
Slide 27: PACCAR Powertrain Emissions and Fuel Economy
PACCAR Powertrain Emissions Reductions North America Fuel Economy Improvement 2.5 70% 70% EPA ‘04 Euro 4 60% 60% 50% 50% NOx (g/bhp-h) 40% 40% 1.2 Euro 5 30% 30% EPA ‘07 20% 20% Euro 6 10% 10% .2 EPA ‘10 .02 0% 0% .1 2010 2011 2013 2014 2012 2015 2016 2017 2018 2019 2020 2021 2005 2006 2007 2008 200
Slide 28: PACCAR Zero Emission Product Portfolio
PACCAR Zero Emission Product Portfolio Heavy Duty Products Medium Duty Products Peterbilt 220EV Kenworth T680E Peterbilt 579EV Kenworth K270E Peterbilt 520EV DAF XF Electric DAF LF Electric
Slide 29: Managing Through Supply Disruptions
Managing Through Supply Disruptions
Slide 30: Localized Production
Localized Production 95% of Tier 1 Suppliers Located in Same Region as Manufacturing Operations Truck Assembly Plants (10) Cabs and Axles (3) Engines (3)
Slide 31: Current Business Environment U.S. & Canada
Current Business Environment U.S. & Canada Units (000s) Class 8 Industry Backlog Units (000s) 300 300 240 240 • Strong Backlog 180 180 120 120 • Managing Order Intake 60 60 0 0 2017 2018 2019 2020 2021 2022 • Gradual Increasing Build Units (000s) 50 Class 8 Industry Net Orders and Build Units (000s)
Slide 32: PACCAR Heavy Duty Market Share
PACCAR Heavy Duty Market Share % Share % Share 36% 36% 32% 32% 28% 28% 24% 24% 20% 20% 16% 16% 12% 12% 8% 8% 4% 4% 0% 0% US and Canada Australia Europe South America 2001 2011 2021 Medium-Term Goal
Slide 33: $4.2B Invested Over 5 Years
PACCAR Engine Factory Automated Medium-Duty Cab Build Cell Australia Truck Factory $4.2B Invested Over 5 Years DAF Westerlo Factory KW Chillicothe Factory • Investments in State-of-the-Art Manufacturing Technologies • Focus of Investments − Safety – Quality − Capacity – Efficiency
Slide 34: Summary
Summary • Newest Product Portfolio in Industry • Excellent Customer Feedback • Best-in-Class Fuel Economy • Continued Product & Facility Investments
Slide 35: John Rich, Vice President & Chief Technology Officer
John Rich Vice President & Chief Technology Officer
Slide 36: Emissions Regulations
Emissions Regulations - 15% GHG Euro 7 - 15% GHG Greenhouse Gas - Zero Emission Vehicles - 80% NOx Red. - More ZEVs – 30% 2021 2022 2023 2024 2025 2026 2027 2030 Greenhouse Gas – 25% 14% GHG 5% GHG 6% GHG TBD California: Nationwide: - 75% NOx Reduction - 80-90% NOx Reduction - Progressive ZEV Mandat
Slide 37: ZEV Powertrain Outlook
ZEV Powertrain Outlook Local Battery Electric Regional Battery Hydrogen Electric < 200 mi. 200-400 mi. Longhaul Hydrogen Today 2030+
Slide 38: Battery Electric Product Lineup
Battery Electric Product Lineup Delivering Today: 7 Truck Models 11 Integrated Charging Solutions
Slide 39: PACCAR Global Truck Sales
PACCAR Global Truck Sales 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Year Clean Diesel % Zero Emissions %
Slide 40: BEV Product Strategy
BEV Product Strategy 2021 2022 2023 2024 2025 2026 2027 Phase 2 – Initial Production Volume: 100’s Phase 3 – PACCAR ePowertrain Volume: 1,000’s Phase 4 – PACCAR Systems Volume: 10,000’s
Slide 41: Hydrogen
Hydrogen Hydrogen Fuel Cells Hydrogen Internal Combustion Zero Tailpipe Emissions Zero Tailpipe CO2 Electric Drivetrain Conventional Drivetrain
Slide 42: BEV Aftersales & Service
BEV Aftersales & Service Ongoing Powertrain Service Revenue • Engine • Aftertreatment • Transmission Million-Mile Diesel Powertrain
Slide 43: BEV Aftersales & Service
BEV Aftersales & Service Ongoing Powertrain Service Revenue • Electric Motor & Transmission • Electric Pumps, Compressors • Power Electronics • Heating & Cooling Systems • Lithium-Ion Batteries • Chargers • Charging Management Million-Mile Electric Powertrain
Slide 44: Integrated ZEV Solutions
Integrated ZEV Solutions Connected Services Connected Trucks Connected Chargers
Slide 45: PACCAR Level 2 ADAS Roadmap
PACCAR Level 2 ADAS Roadmap Foundational Vehicle Control Advanced Safety Active Steering Vulnerable Road User ! Detection Adaptive Cruise Driver State Monitoring Automatic Braking Intelligent Braking
Slide 46: Autonomous Vehicle Platform
Autonomous Vehicle Platform Advanced Proprietary Powertrain Embedded Controls Software Redundant Brakes Redundant High Reliability Steering Power Supply
Slide 47: Autonomous Vehicle Platform
Autonomous Vehicle Platform Modular and Scalable Platform Vehicle Platform Actuators Body Controls Redundancy
Slide 48: Autonomous Vehicle Platform
Autonomous Vehicle Platform Modular and Scalable Platform Multiple Developer Partners AV Developer Partner Vehicle Autonomous Platform Driver Actuators Sensors Body Controls Software Redundancy Compute
Slide 49: Autonomous Vehicle Platform
Autonomous Vehicle Platform Modular and Scalable Platform Multiple Developer Partners AV Developer Partner Vehicle Autonomous Platform Driver Actuators Integration Sensors Body Controls Interface Software Redundancy Security Compute
Slide 50: Autonomous Vehicle Platform
Autonomous Vehicle Platform Modular and Scalable Platform Multiple Developer Partners Market Leadership AV Developer Partner Level 4 Vehicle Autonomous Autonomous Platform Driver Truck Actuators Integration Sensors Body Controls Interface Software Redundancy Security Compute
Slide 51: Platform Partnership Strategy
Platform Partnership Strategy Reliable Safe Efficient
Slide 52: PACCAR Enables Autonomous Trucking
PACCAR Enables Autonomous Trucking Engineering and Manufacturing Repair and Maintenance Replacement Parts Connected Services
Slide 53: PACCAR Global Connected Services
7a PACCAR GLOBAL CONNECTED SERVICES CONNECTED SERVICES
Slide 54: Customer Experience – Fleet Business Tools
Customer Experience – Fleet Business Tools What They Have What They Want • Multiple Standalone Devices • Integrated Hardware & Display • Lack of System Integration • Access to Fleet Business Apps
Slide 55: Connected Truck Capabilities
Connected Truck Capabilities Over the Air Software Updates App Store • On-Demand Software Updates • Account Renewals & Payments • Remote Diagnostic Tools • Access to Fleet Business Apps
Slide 56: Connected Capabilities – Support Services
Connected Capabilities – Support Services Customer Call Center Dealer Service Online Tools • Vehicle Uptime Support • Vehicle & Driver Performance • Services Scheduling • Predictive Maintenance Tools
Slide 57: Battery Electric, Hydrogen, Connected Services, Autonomy
Battery Electric Hydrogen Connected Services Autonomy
Slide 58: Laura Bloch, PACCAR Parts General Manager
Laura Bloch Vice President & PACCAR Parts General Manager
Slide 59: PACCAR Parts Worldwide Sales & Profit
PACCAR Parts Worldwide Sales & Profit Sales Profit $ Millions $ Millions $5,000 $1,500 $4,500 $1,350 $4,000 $1,200 $3,500 $1,050 $3,000 $900 $2,500 $750 $2,000 $600 $1,500 $450 $1,000 $300 $500 $150 $0 $0 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Sales Profit
Slide 60: Q1 2022 PACCAR Parts Accomplishments
Q1 2022 PACCAR Parts Accomplishments • Record Sales $1.39B +20% • Record Global Profit $340M +35% • Engine Parts Sales $456M +25% • Fleet Revenue $190M +27% • eCommerce Retail Sales $286M +17% • TRP Store Retail Sales +22%
Slide 61: PACCAR Parts Segmentation Strategy
PACCAR Parts Segmentation Strategy PACCAR Proprietary Increased Customer Loyalty & Margin TRP Vendor Brands
Slide 62: Technology Driven Solutions
Technology Driven Solutions eCommerce Data Analytics BusinessAnalytics • Related Parts Suggestions • A.I. Part Recommendations • Integrated Loyalty Offers • Dealer Performance Insight Connected Service Technology • Real Time Monitoring • Over The Air Diagnostics • Increase Service Efficiency • Integ
Slide 63: 2021 PACCAR N.A. Powertrain Sales Volume
2021 PACCAR N.A. Powertrain EPA 13 99K EPA10 32K Sales Volume EPA17 126K EPA21 27K Maintenance Service Overhaul Second Life Years 1-4 Years 5-8 Years 8-12 Years 12-20 • 285,000 Engines in Service • EPA13 Now Reaching Overhaul • EPA13 & EPA17 Maintenance • EPA10 Second Engine Life
Slide 64: 2030 PACCAR N.A. Powertrain Sales Volume
2030 PACCAR N.A. Powertrain EPA17 EPA21 126K EPA13 110K 99K EPA27 Sales Volume & ZEV EPA24 EPA10 215K 142K 32K Maintenance Service Overhaul Second Life Years 1-4 Years 5-8 Years 8-12 Years 12-20 • 725,000 Powertrains in Service • 2nd & 3rd Owner Lifecycle • Remanufactured Engines • Electric Vehicle
Slide 65: Aftermarket - Electrification
Aftermarket - Electrification eAxle Charger Electric Accessories Battery Box Electric Vehicle Parts PACCAR Chargers • EV Batteries & Safety Systems • PACCAR Chargers for All Makes • New PACCAR EV Parts • Charger Service Agreements
Slide 66: Fleet Services Global Growth
Fleet Services Global Growth Revenue Fleets $800 2,750 $600 2,000 $400 1,250 • National Parts Pricing & Centralized Billing $200 500 • Captive Fleet eCommerce Integrations 2017 2018 2019 2020 2021 • $800M 2022 PACCAR Parts Revenue; +24% PACCAR Revenue Fleets
Slide 67: US & Canada Industry Parts Opportunity
US & Canada Industry Parts Opportunity Truck Years In Service
Slide 68: US & Canada Industry Parts Opportunity
US & Canada Industry Parts Opportunity Truck Years In Service
Slide 69: US & Canada Industry Parts Opportunity
US & Canada Industry Parts Opportunity Truck Years In Service
Slide 70: US & Canada Industry Parts Opportunity
US & Canada Industry Parts Opportunity Truck Years In Service
Slide 71: TRP Retail Stores – Global Expansion
TRP Retail Stores – Global Expansion North America Europe 95 110 South America Australia / Africa / ASEAN 32 16 1st Store 2013 253 Stores 2022
Slide 72: TRP Retail Stores – Global Expansion
TRP Retail Stores – Global Expansion North America Europe 95 110 South America Australia / Africa / ASEAN New Customers! Global Retail Growth! 32 16 1st Store 2013 253 Stores 2022
Slide 73: Global Distribution Excellence
Global Distribution Excellence • 18 World-Class Facilities • 24/7 Uptime Support • Same Day Shipment • 99.99% Shipping Accuracy • Automation & Voice Pick Technology
Slide 74: Distribution Optimization
Distribution Optimization Managed Dealer Inventory Auto Accept Parts Distribution Center Same Day Shipping Dedicated Delivery & Auto Receipt Parts Distribution Center Network Expansion
Slide 75: 85% Delivery Leadtime Reduction
Distribution Optimization Managed Dealer Inventory Auto Accept Parts Distribution Center Same Day Shipping 85% Delivery Leadtime Reduction! Dedicated Delivery & Auto Receipt Parts Distribution Center Network Expansion
Slide 76: Distribution Center Expansion
Distribution Center Expansion Toronto, Canada – October 2018 Ponta Grossa, Brasil – May 2020 Las Vegas – May 2020 Louisville – June 2022
Slide 77: Kenworth and Peterbilt Dealer Locations
Kenworth and Peterbilt Dealer Locations U.S. and Canada Locations Locations 900 900 PACCAR MX-13 Introduced in 2010 800 800 Dealer Investments of $2.1B Over Last 10 Years 700 700 Drives Long-Term PACCAR Parts Growth 600 600 500 500 400 400 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Slide 78: Dealerships & Distribution Centers
Dealerships & Distribution Centers 2,250 Kenworth, Peterbilt, DAF, TRP Locations 18 PACCAR Distribution Centers
Slide 79: PACCAR Parts Global Growth Drivers
PACCAR Parts Global Growth Drivers • Expanding Engine Part Sales • Driving Fleet Parts & Service • TRP All Makes Capture • eCommerce Growth • Electric Vehicle Adoption • Distribution Optimization • Strong Dealer & Customer Loyalty
Slide 80: Todd Hubbard, Vice President - PACCAR Financial Services
Todd Hubbard Vice President - PACCAR Financial Services
Slide 81: PACCAR Financial Services (PFS)
PACCAR Financial Services (PFS) • Industry Leading Financial Services Provider • Improve Truck Market Share • Support Dealer Growth • Ongoing Customer Contact • Enhance Total PACCAR Value PACCAR Financial Offices
Slide 82: PFS Worldwide Operating Trends
PFS Worldwide Operating Trends New Business Volume Total Assets $ Billions $ Billions $ Billions $ Billions 6 6 16 16 12 12 4 4 8 8 2 2 4 4 0 0 0 0 12 13 14 15 16 17 18 19 20 21 12 13 14 15 16 17 18 19 20 21 Pre-tax Profit Past Dues $ Millions $ Millions % % 500 500 5 5 400 400 4 4 300 300 3 3 200 2
Slide 83: Financial Services Peer Comparison
Financial Services Peer Comparison Return on Assets 4.0% 4.0% 3.2% 3.2% 2.4% 2.4% 1.6% 1.6% 0.8% 0.8% 0.0% 0.0% 12 13 14 15 16 17 18 19 20 21 PACCAR Financial CAT Financial Deere Capital Volvo Financial
Slide 84: PACCAR Financial Services 1st Quarter 2022 Accomplishments
PACCAR Financial Services 1st Quarter 2022 Accomplishments Total Assets of $16.0 Billion Record $147 Million Pre-tax Profit 97% Market Coverage of Truck Sales 2,100 Used Trucks Sold Pre-tax Profit $ Millions $ Millions 150 150 120 120 90 90 60 60 30 30 0 0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Slide 85: Competitive Advantages
Competitive Advantages Finance Access to Technology Customer Used Truck Products Customers Platform Interest Rates Remarketing PACCAR Financial Captives Banks
Slide 86: Technology
Technology Operating Platforms Online Services E-Contracts • Enhanced Customer Digital Experience • Upgrading Global Operating Platforms • 24/7 Online Account Management • E-Signatures “Anywhere and Anytime” • Industry-First Dealer Finance Portal Dealer Finance Portal
Slide 87: Leveraging Data Analytics
Leveraging Data Analytics Combine Connected Services Data with the PACCAR Cloud and Advanced Analytical Tools to: Grow Revenue • Predictive Sales Leads • Dynamic Pricing Mitigate Risk • Early Delinquency Warnings • Performance Reporting Enhance Decision-Making • Market Specific Credit Scorecards • A
Slide 88: Used Trucks
Used Trucks Used Truck Centers Germany Salt Lake Chicago Warsaw Paris Prague Denton Lyon Spartanburg Budapest Los Angeles Madrid Current Location Expansion Retail Sales Mix % 50 % 50 • Record 20,700 Pre-Owned Trucks Sold 40 40 • Extensive Remarketing Network 30 30 20 20 • Enhanced Website & e-Commer
Slide 89: Common Carrier vs Private Fleet
Common Carrier Private Fleet Trucks Generate Revenue for Customers Trucks are Expense to Customers Customers Maintain Trucks PacLease Maintains Trucks Customers Want to Own Trucks Customers Don’t Want to Own Trucks
Slide 90: PacLease Overview
| Overview 38,600 Truck Fleet 6,300 Annual Truck Purchases 4,000 Full Service Lease Customers 587 Locations Worldwide
Slide 91: PacLease Business Growth
| PacLease Business Growth Current Services Expanded Services Trucks as a Service • Full-Service Lease • Managed Maintenance • Pay per Use Model ‒ Long Term Contracts ‒ Connected Services ‒ By Mile or Truck Hour • Full Maintenance Programs • Electric Truck Lease & Rental ‒ EV or Autonomous ‒ Truck a
Slide 92: Harrie Schippers, President and Chief Financial Officer
Harrie Schippers President and Chief Financial Officer
Slide 93: Overview
Overview 117 Years of Superior Performance • First Quarter 2022 Results 83 Consecutive Years of Net Profit − $6.5 Billion Revenues − $601 Million Net Income − 43,000 Truck Deliveries − $1.4 Billion Parts Revenues • A1/A+ Credit Ratings • Regular Quarterly Dividend Increased 8% per Year on Average fo
Slide 94: Quarterly Financial Results
Quarterly Financial Results Revenue Net Income $ Billions $ Billions $ Millions $ Millions 7 7 700 700 6 6 600 600 5 5 500 500 4 4 400 400 3 3 300 300 2 2 200 200 1 1 100 100 0 0 0 0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22
Slide 95: Truck, Parts and Other Profit and Margin
Truck, Parts and Other Profit and Margin Gross Profit and Margin Operating Profit and Margin Gross Profit ($M) Gross Margin (%) Operating Profit ($M) Operating Margin (%) 1000 15% 600 12% 500 10% 800 12% 400 8% 600 9% 300 6% 400 6% 200 4% 200 3% 100 2% 0 0% 0 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q
Slide 96: Truck and Parts Gross Profit and Margin
Truck and Parts Gross Profit and Margin Truck Segment Parts Segment Gross Profit ($M) Gross Margin (%) Gross Profit ($M) Gross Margin (%) 500 15% 500 30% 400 12% 400 300 9% 300 27% 200 6% 200 24% 100 3% 100 0 0% 0 21% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q
Slide 97: PACCAR Balance Sheet
PACCAR Balance Sheet - ($ Millions) March 31, December 31, 2022 2021 Cash & Securities $4,672 $4,813 Manufacturing Assets 9,917 9,277 Financial Services Assets 15,997 15,419 Total Assets $30,586 $29,509 Manufacturing Debt $0 $0 Manufacturing Liabilities 6,326 6,269 Financial Services Liabilities 12,
Slide 98: Best-in-Class Return on Invested Capital
Best-in-Class Return on Invested Capital 2021 Average 2017 - 2021 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% ROIC = NOPAT/(Equity + Manufacturing Debt + Postemployment Benefit Liabilities)
Slide 99: Net Profit as % of Revenues
Net Profit as % of Revenues 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% -2% -2% -4% -4% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 PACCAR Volvo Daimler TRATON Iveco
Slide 100: Best-in-Class Operating Efficiency
Best-in-Class Operating Efficiency SG&A as % of Revenues 16% 16% 12% 12% 8% 8% 4% 4% 0% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 PACCAR Volvo Daimler TRATON Iveco
Slide 101: Operating Cash Flow
Operating Cash Flow $ Millions $ Millions 3,000 3,000 2,500 2,500 2,000 2,000 1,500 1,500 1,000 1,000 500 500 0 0 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Slide 102: Dividends Per Share
Dividends Per Share $ Per Share % of EPS 4.00 100% 3.50 90% 3.00 80% 2.50 70% 2.00 60% 1.50 50% 1.00 40% 0.50 30% 0.00 20% 12 13 14 15 16 17 18 19 20 21 Quarterly Annual % of EPS 2016 EPS is adjusted to exclude one-time expenses
Slide 103: Total Dividends Declared and Stock Repurchases
Total Dividends Declared and Stock Repurchases $ Millions $ Millions 1,600 1,600 1,400 1,400 1,200 1,200 1,000 1,000 800 800 600 600 400 400 200 200 0 0 12 13 14 15 16 17 18 19 20 21 Dividends Stock Repurchased
Slide 104: Cash & Equivalents % of Total Assets
Cash & Equivalents % of Total Assets Total Assets Cash % of $ Billions Total Assets 35 35% 30 30% 25 25% 20 20% 15 15% 10 10% 5 5% 0 0% 12 13 14 15 16 17 18 19 20 21 1Q22 Total Assets Cash & Equivalents as a % of Total Assets
Slide 105: Capital Investments and R&D Expenses
Capital Investments and R&D Expenses Strategic Investments Throughout the Business Cycle $ Millions $ Millions 1,200 1,200 1,000 1,000 800 800 600 600 400 400 200 200 0 0 12 13 14 15 16 17 18 19 20 21 22F R&D Capital Investments
Slide 106: Next Gen R&D
Battery Electric Next Gen Hydrogen R&D Connected Services Autonomy
Slide 107: Business Outlook
Business Outlook Second Quarter 2022 • Deliveries: 44,000 - 48,000 • Parts Sales: Up 14% - 16% from 2Q21 • Gross Margin: 13.5% - 14.0% • Strong Performance Financial Services Full Year 2022 • Heavy-Duty Market Size − US & Can: 260,000 - 290,000 − Europe: 270,000 - 300,000 − South America: 125,000 -
Slide 108: PACCAR's Bright Future
PACCAR’s Bright Future • Industry Leading Profitability • PACCAR Parts – Dynamic Growth Business • Stronger for Longer Cycle • Newest Product Portfolio in Industry • ZEV and Autonomous Leadership • Connected Vehicle Revenue Growth • Excellent Margin Growth
Slide 109: Investor Conference Question & Answer Session
Investor Conference Question & Answer Session
Slide 110: PACCAR
PACCAR... F