this presentation may contain statements that are forward · 2018-07-24 · this presentation may...
TRANSCRIPT
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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 Relations page of www.paccar.com.
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Page 2 July 2016
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Page 3July 2016
Commercial Vehicles Aftermarket Support
Financial ServicesInformation Technology
Powertrain
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Page 4 July 2016
>16T Truck Manufacturing 2015 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
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Page 5 July 2016
PACCAR Revenues and Profit
($ Millions) 2nd Quarter Six Months 2016 2015 2016 2015
Revenues $4,413 $5,080 $8,713 $9,913
Adjusted Net Income (Non-GAAP) 372 447 720 826 Return on Revenue 8.4% 8.8% 8.3% 8.3% Adjusted Diluted EPS 1.06 1.26 2.05 2.32
Net Income (Loss) 481 447 (113) 826 Diluted EPS 1.37 1.26 (0.32) 2.32
77 consecutive years of net profit
Dividends every year since 1941
Note: See appendix for supplementary information on non-GAAP financial measures
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Page 6 July 2016
PACCAR Inc A+/A1 Credit Ratings
6/30/16 Cash & Securities $ 3,397 Manufacturing Assets 5,803 Financial Services Assets 12,227 Total Assets $ 21,427
Manufacturing Debt $ 0 Manufacturing Liabilities 4,990 Financial Services Liabilities 9,727 Shareholders' Equity 6,710 Total Liabilities & Equity $ 21,427
($ Millions)
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Page 7 July 2016
PACCAR Overview – Q2 2016
Consolidated Sales & Revenues $4.41 Billion
$372 Million Adjusted Net Income (Non-GAAP); $481 Million Net Income
PACCAR Financial Pre-Tax Profit $77 Million
PACCAR Parts Pre-Tax Profit $133 Million
$6.71 Billion Stockholders’ Equity
A1/A+ Credit Ratings
Regular Dividend Doubled in Last 5 Years
Total Dividend Yield of Over 4%
Note: See appendix for supplementary information on non-GAAP financial measures
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Page 8 July 2016
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
PACCAR Excellent 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
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Page 9 July 2016
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
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Page 10 July 2016
Industry Operating Margin
-9%
-6%
-3%
0%
3%
6%
9%
12%
15%
-9%
-6%
-3%
0%
3%
6%
9%
12%
15%
05 06 07 08 09 10 11 12 13 14 15PACCAR Iveco Volvo Daimler Volkswagen Navistar
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Page 11 July 2016
Annualized Shareholder Total Return % Fifteen Years, As of June 30, 2016
Deere
Volvo
Caterpillar
Volkswagen
Isuzu
Hino
Daimler
Toyota
Ford
Navistar
S&P 500
-10 -5 0 5 10 15 20
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Page 12 July 2016
Dividends Declared and Stock Repurchases
0
150
300
450
600
750
900
1,050
0
150
300
450
600
750
900
1,050
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
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Page 13 July 2016
Quality Technology Innovation
Truck Fleet Manufacturer of the Year 2016 in the U.K.
DAF LF Truck of the Year 2015 for up to 7.5t in the U.K.
Engineering and Production Technology Leadership Awards
Kenworth T880 - Commercial Truck of the Year 2015
Operational and Workplace Leadership Awards
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Page 14 July 2016
New Products and Technologies
Action Plan
Automated Notification
Off-Board Diagnostics
Resolution Fault Detected
Remote Diagnostics
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Page 15 July 2016
New Facility Investments
• Westerlo
Kenworth, Chillicothe, Ohio PACCAR Parts Distribution Center, Renton, WA
Peterbilt, Denton, Texas DAF, Westerlo, Belgium
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Page 16 July 2016
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
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Page 17 July 2016
0
50
100
150
200
250
300
350
400
450
0
50
100
150
200
250
300
350
400
450
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Engines (000s) Engines (000s)
PACCAR MX Engines In Operation
KW/PB MX-13 DAF MX-11 DAF MX-13
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Page 18 July 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
Units (000s)
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Page 19 July 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. andCanada
Mexico
2005 2015
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Page 20 July 2016
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
133,900 125,900
61,000
78,800
138,000 140,400
137,100
PACCAR Truck Production 1.3 Million Trucks Produced 2006-2015
142,900 154,700
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Page 21 July 2016
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
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Page 22 July 2016
PACCAR Parts Distribution Centers and Dealers
PACCAR Distribution Centers
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Page 23 July 2016
Eindhoven, NL Lancaster, PA
Ponta Grossa, BR
PACCAR Parts Investments
Renton, WA
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Page 24 July 2016
PACCAR Global Dealer Network
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Page 25 July 2016
Rigorous Cost Control
2
3
4
5
200
300
400
500
06 07 08 09 10 11 12 13 14 15
% $ Millions
Dollars % to Sales
SG&A
• Efficiency
• Productivity
• Streamlined Processes
• Reliability
• Fast & Easy Assembly
• Robust Design
• Eliminate Defects
• Reduce Variation
• Consistent Performance
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Page 26 July 2016
Units in Thousands PACCAR Truck Assembly
2010 – 2.7 Million 2015 – 2.5 Million 2020 – 2.7 Million
Global >6T Truck Markets
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 55 115
750
India 201
362.7 365 365 200
Rest of Asia
Russia/CIS China
15 20.6 20 15 21
Australia
85
1,280
275
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Page 27 July 2016
Taiwan Russia
Brasil India
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Page 28 July 2016
Environmental Leadership
Member CDP (Carbon Disclosure Project) Reduce Environmental Impact Through Product
Design Product Recyclability
90%+ Reduction in NOx and Particulate Emissions Alternative Fuel Vehicles (Natural Gas, Hybrid)
Zero Waste to Landfill Environmental Certification (ISO 14001)
EPA SmartWay
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Page 29 July 2016
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Page 30 July 2016
PACCAR Financial Services – Q2 2016
$12.2 Billion in Assets
$77 Million Pre-tax Profit
Full Service Leasing
Dealer Floorplan Retail Financing
175,000 Vehicles Financed
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Page 31 July 2016
Paris Bellevue
Salt Lake City
Mexicali
Chicago
Denton
Melbourne
Atlanta
Philadelphia
Toronto
Spartanburg
Mexico City
Madrid Milan
Warsaw Prague
London Eindhoven
PACCAR Financial Services
PACCAR Financial Regional Offices
Freshen, Germany
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Page 32 July 2016
PACCAR Financial Services Assets
2005 - $8.4 Billion 2Q16 - $12.2 Billion
U.S. & Canada
$6.2 Billion 51%
PacLease $2.3 Billion
19%
Europe $2.6 Billion
21%
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 $1.1 Billion
9%
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Page 33 July 2016
45,400 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
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Page 34 July 2016
10
15
20
25
30
35
40
10
15
20
25
30
35
40
06 07 08 09 10 11 12 13 14 15
Trucks 000’s
Trucks 000’s
564 Service Locations
38,000 Vehicles
$2.3 Billion Assets
PACCAR Leasing
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Page 35 July 2016
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
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 Profit Avg. Earning Assets
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Page 36 July 2016
PACCAR Financial Services 6/30/16
Finance & Other Receivables $9,055 Equipment on Operating Leases 2,504 Other Assets 668 Total Financial Services Assets $12,227
Commercial Paper & Bank Loans $2,426 Term Notes 6,018 Deferred Taxes & Other Liabilities 1,283 Total Financial Services Liabilities 9,727 Equity 2,500 Total Liabilities & Equity $12,227
($ Millions)
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Page 37 July 2016
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
Strongest Dealer Network
Profitable Financial Services
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Page 38 July 2016
Appendix Reconciliation 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 GAAP and 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: Three Months Ended Six Months Ended
(in millions) June 30, 2016 June 30, 2016
Adjusted Net Income (Non-GAAP) $ 371.7 $ 719.7
Non-recurring European Commission Charge 109.6 (833.0)
Net Income (Loss) $ 481.3 $ (113.3)
Three Months Ended Six Months Ended
June 30, 2016 June 30, 2016
Per Diluted Share:
Adjusted Net Income (Non-GAAP) $ 1.06 $ 2.05
Non-Recurring European Commission Charge 0.31 (2.37)
Net Loss $ 1.37 $ (0.32)
Three Months Ended Six Months Ended
(in millions) June 30, 2016 June 30, 2016
Shares used in per diluted share calculations:
Non-GAAP 351.6 351.8
GAAP 351.6 351.1
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Page 39 July 2016