PACCAR Inc. (NASDAQ:PCAR) Q1 2024 Earnings Conference Call April 30, 2024 11:00 AM ET Company Participants Ken Hastings – Director of Investor Relations Preston Feight – Chief Executive Officer Harrie Schippers – President and Chief Financial Officer Brice Poplawski – Vice President and Controller Conference Call Participants Tami Zakaria – JPMorgan Angel Castillo – Morgan Stanley Rob Wertheimer – Melius Research Steve Volkmann – Jefferies Jaime Cook – Truist Chad Dillard – Bernstein David Raso – Evercore I ...

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. Excellent Dividend Yield 5 PACCAR Brands 46 Financial Services Strategy 29 10 49 31 12 51 33 14 54 35 16 56 37 18 58 39 20 60 41 Manufacturing Capacity Investments 23 2023 Revenues $35.1B 2023 ...

Financial Performance - PACCAR reported quarterly revenues of $8.74 billion in Q1 2024, up from $8.47 billion in Q1 2023, representing a 3.2% increase[2] - Net income for Q1 2024 was $1.20 billion ($2.27 per diluted share), compared to $733.9 million ($1.40 per diluted share) in Q1 2023, marking a significant increase[2] - Total sales and revenues for Q1 2024 reached $8,744.3 million, a 3.2% increase from $8,473.3 million in Q1 2023[26] - The company reported a pretax profit of $1,534.5 million, significantly higher than $919.0 million in the same quarter last year[26] - Investment income and other contributed $83.2 million, a recovery from a loss of $562.7 million in the previous year[26] Revenue Breakdown - Truck sales contributed $6,541.0 million, up from $6,413.8 million, while parts sales increased to $1,675.9 million from $1,623.0 million[26] - PACCAR Parts achieved record revenues of $1.68 billion in Q1 2024, up from $1.62 billion in the same period last year, with pre-tax income rising to $455.8 million from $438.6 million[4][9] - Revenue from the United States and Canada increased to $5,674.6 million, up from $5,040.1 million, while European revenue decreased to $1,805.0 million from $2,275.5 million[28] Market Share and Deliveries - PACCAR's Class 8 truck market share in North America increased to 30.3% in Q1 2024, up from 29.5% in the same period last year[5] - DAF Brasil achieved a record market share of 10.7% in the above 16-tonne truck market in Q1 2024, compared to 8.6% in Q1 2023[8] - New truck deliveries in the United States and Canada rose to 29,500 units, compared to 26,000 units in Q1 2023, while deliveries in Europe decreased to 11,600 units from 17,400 units[30] Operational Cash Flow - Cash provided by operations was $1.47 billion in Q1 2024, compared to $684.8 million in Q1 2023, indicating strong operational cash flow[4][24] Investments and Expenditures - The company invested $164.3 million in capital projects and $105.5 million in R&D expenses during Q1 2024, with projected capital expenditures for 2024 estimated between $700-$750 million[14] - The company anticipates investing $600-$900 million in a joint venture for advanced battery cell manufacturing, with production expected to start in 2027[14] Adjusted Financial Metrics - Adjusted net income for Q1 2023 was $1,180.3 million, excluding a $600.0 million charge related to EC claims, compared to a net income of $733.9 million[34] - Adjusted net income per diluted share for Q1 2023 was $2.25, compared to $1.40 for net income[34] Non-Recurring Charges - The company recorded a non-recurring charge of $600.0 million related to civil litigation in Europe, impacting overall financial results[30] Financial Services Performance - PACCAR Financial Services reported pretax income of $113.9 million in Q1 2024, down from $148.8 million in Q1 2023, while revenues increased to a record $509.3 million from $423.2 million[13] Strategic Focus - The overall market expansion strategy continues to focus on increasing truck deliveries and enhancing financial services offerings[30]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ to ____. Commission File Number 001-14817 PACCAR Inc (Exact name of Registrant as specified in its charter) Delaware 91-0351110 (State or other jurisdiction of incorpora ...

− Next generation Kenworth and Peterbilt Class 8 trucks − New Kenworth and Peterbilt Class 5-7 trucks − New generation DAF XD, XF, XG and XG+ trucks − Integrated powertrains including diesel, electric, hybrid and hydrogen fuel cell technologies − PACCAR MX-13 and MX-11 engine factory in North America − DAF Brasil factory − PACCAR Parts distribution centers January 2024 Page 29 Cumulative PACCAR MX Engines Produced • The PACCAR MX-13 is the flagship of PACCAR's engine lineup with over 676,000 engines produce ...

Financial Data and Key Metrics Changes - In 2023, the company achieved record annual revenues of $35.1 billion, net income of $4.6 billion, and an after-tax return on revenue of 13.1% [32] - Fourth quarter revenues were $9 billion, with net income reaching a record $1.42 billion, which was 54% higher than the prior year [48] - The company declared a record dividend of $4.24 per share in 2023, including an extra cash dividend of $3.20 per share [33] Business Line Data and Key Metrics Changes - PACCAR Parts achieved fourth quarter revenues of $1.61 billion and pre-tax profits of $432 million, with annual revenues increasing by 11% to $6.4 billion and pretax profit rising by 18% to $1.7 billion [52][34] - Truck parts and other gross margins were 19.3% for the full year and 19.4% in the fourth quarter, reflecting strong truck deliveries and excellent parts business [36] Market Data and Key Metrics Changes - In 2023, European above 16-tonne truck registrations were 343,000, with DAF's deliveries increasing to a record 63,000 trucks [35] - The U.S. and Canadian Class 8 truck market is forecasted to be in the range of 260,000 to 300,000 vehicles for 2024 [49] - The South American above 16-tonne truck market is expected to remain similar to last year's 110,000 vehicles, with DAF achieving a record 10.2% market share in Brazil [50] Company Strategy and Development Direction - The company is investing in additional manufacturing capacity, including truck factory expansions and a new engine remanufacturing facility [38] - PACCAR is focusing on next-generation clean conversion engines, battery and hydrogen electric powertrains, and advanced driver assistance systems [53] - The company is also expanding its global distribution network with new Parts Distribution Centers [37] Management's Comments on Operating Environment and Future Outlook - Management expects normalization in market sizes, with a 5% to 10% lower market size anticipated in both Europe and North America [24] - The company sees strong global markets, particularly in Australia, Mexico, and South America, while Europe is expected to normalize [42] - Management expressed confidence in continued strong performance in the parts business and truck margins due to new product offerings [8][9] Other Important Information - The company has a strong history of dividend payouts, maintaining a payout ratio of around 50% of net income [144] - PACCAR Financial Services achieved a fourth quarter pretax income of $113 million, with annual pretax income of $540 million [71] Q&A Session Summary Question: Can you expand on pricing dynamics and margin expectations for 2024? - Management indicated good pricing realization against costs and expects gross margins for the first quarter to be in the range of 18.5% to 19% [2][24] Question: How does the margin profile compare between Europe and North America? - Management noted that while Europe is slightly softer, new DAF products continue to provide excellent margins [3][5] Question: What is the outlook for the parts business in 2024? - The company expects parts sales to grow by 4% to 8% compared to the record year last year, driven by favorable pricing and cost increases [25][52] Question: How is the company positioned regarding electric vehicle demand? - Management acknowledged a gradual adoption of EVs and emphasized ongoing investments in battery production to meet future demand [63][104] Question: What are the expectations for used truck prices moving forward? - Management indicated that used truck prices have normalized and expect stabilization at current levels [102][133] Question: How does the company plan to deploy its cash reserves? - The company plans to continue dividend payouts, fund joint ventures, and evaluate strategic acquisitions as opportunities arise [144]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 001-14817 PACCAR Inc (Exact name of registrant as specified in its charter) Delaware 91-0351110 (State or other jurisdiction of incorporation ...

PACCAR Inc. (NASDAQ:PCAR) Q3 2023 Earnings Conference Call October 24, 2023 12:00 PM ET Company Participants Ken Hastings - Director of IR Preston Feight - CEO Harrie Schippers - President & CFO Conference Call Participants Tami Zakaria - JPMorgan Steve Volkmann - Jefferies Chad Dillard - Bernstein Rob Wertheimer - Melius Research David Raso - Evercore ISI Jerry Revich - Goldman Sachs Steven Fisher - UBS Tim Thein - Citigroup Nicole DeBlase - Deutsche Bank Matt Elkott - Cowen Jeff Kauffman - Vertical Resear ...

Disclosure Regarding Forward-Looking Statements 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. Index PACCAR | This presentation may contain statements that are forward looking. These statements are based on current expectations and assumpt ...

For the quarterly period ended June 30, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 001-14817 PACCAR Inc (Exact name of registrant as specified in its charter) Delaware 91-0351110 (State or other jurisdiction of incorporation or or ...