UPTIME MEANS MORE THAN BUILDING A LINE OF TRUCKS THAT STAY ON THE ROAD LONGER. UPTIME IS A CHANGE IN OUR MINDSET. UPTIME IS A SHIFT IN OUR PRIORITIES. UPTIME IS A RENEWED COMMITMENT TO OUR DEALERS SO THAT THEY CAN COUNT ON US TO DELIVER. UPTIME IS OUR DEDICATION TO TECHNOLOGY, INNOVATION, TOOLS AND SERVICES THAT ALLOWS OUR CUSTOMERS TO KEEP MOVING FORWARD. IT’S TIME TO PERFORM WELL BEYOND EXPECTATIONS. IT’S TIME FOR A NEW VISION THAT STARTS WITH EACH ONE OF US. IT’S TIME TO MAKE EVERY DAY BETTER THAN THE DAY BEFORE. OUR HISTORY STARTS TODAY.

OUR NEW SENIOR LEADERSHIP TEAM

Troy Clarke President and Chief

Executive Officer

Walter Borst Executive Vice President & Chief Financial Officer

Perio Lisboa President, Operations

Bill Kozek President, Truck &

Parts

TRANSFORMATION Gone through ten years of change in the last two years. •  We’ve streamlined the business, divested non-core businesses and joint ventures •  We’ve consolidated manufacturing to reduce costs and improve quality We’ll continue to look at and evaluate: •  What we do, how and where we do it: This includes:

Businesses and Business Units Products, Markets, Segments, Make vs. Buy, Facilities, etc.

NAVISTAR’S TRANSFORMATION TIMELINE

2013 2014 2015 & Beyond

Q1-Q2 2013 11/15: Launched ProStar with ISX, ahead of schedule 3/7: Troy Clarke Named President and CEO 4/11: Launched 9900i, PayStar 5900 with Cummins ISX15 4/16: Named Jack Allen COO 4/16: Achieved EPA cert on 13L SCR 4/29: Launched ProStar with N13

Q3-Q4 2013 5/20: Bill Kozek named President, NA Truck and Parts 5/30: Named Bill Osborne SVP, Global Quality 7/16: Launched WorkStar with N13 8/8: Launched TranStar with N13 8/12: Navistar and Cummins reach 10,000 orders

•  Best in class quality and uptime •  Best in class fuel economy •  Continued technology leadership •  Restore brand reputation •  Continued design and innovation

leadership •  Regain profitable market share •  8-­‐10%  EBITDA  run  rate  goal  by  end  of  2015  

Q3/Q4 2014 5/8: Largest one time sale of LoneStars 7/15: Launched N9/N10 in DuraStar and WorkStar 7/28: Diamond Renewed program launched 9/3: Positive PBT achieved 9/3: Launched propane bus 10/5: Launched New OCC Features 11/6: New Leadership Team 12/5: Launched ProStar ES

Q1-Q2 2014 12/19: Launched DuraStar with ISB6.7 1/26: Navistar sweeps ATD Truck of the Year with ProStar and TerraStar 4x4 3/5: Work Truck Magazine names TerraStar 4x4 Truck of the year

Q1 –

Q2

Q3 –

Q4

Q1 2015 11/6: Persio Lisboa joins senior leadership 12/5: ProStar ES launches 2/3: WorkStar available with ISB 2/23: CE Series Bus available with Propane

IT’S UPTIME

2015 •  Improved Financials/EBITDA •  Lowered Structural Costs •  Highest quality products •  Good cash position •  Good core product volume

Q1 2015 SUMMARY

Positive Sales Momentum: • Chargeouts up 17%

Class 6-7 Medium up 25% School Bus up 42%

• Backlog up 27% • Parts up 7%

Q1 Performance: • $91 million year-over-year adjusted EBITDA improvement

Significant Progress on Cost: • Reduced warranty spend and expense • Improved material, manufacturing, and structural costs

REVENUE & PROFITABILITY

Q1-2015 revenues were $2.4 billion,

up $213 million or 10%, vs. Q1-2014.

We reported a Q1-2015 net loss of $42 million, compared to a Q1-2014 net loss of $248 million—a $206 million year-over-year improvement.

 

EBITDA

Q1-2015 EBITDA was $101 million vs. an EBITDA loss of $110 million in Q1-2014. The $211 million year-over-year improvement reflects the increase in sales and favorable product mix in core markets as well as the continuation of lower warranty expense and reduced operational and structural costs.

LEAN

Proof:

1.  Manufacturing costs are improving while quality continues to improve as well

2.  We continue to manage and improve our SG&A costs

3.  We have shed non-core; poorer performing assets

Structural cost reduction driven by lean cultural shift enterprise-wide focusing on eliminating waste and continuous improvement.

LEADING VEHICLE UPTIME STARTS WITH QUALITY AT EVERY TURN

11  

Trucks that are designed to stay on the road

• Warranty spend is down year over year and quarter over quarter

Build defect-free trucks, delivered on the date promised

• All of our SCR products launched on-time or ahead of schedule

Fast service and repair at our dealerships

•  Lower costs per repair

Real-time vehicle monitoring and support

• OnCommand Connection is the only open architecture telematics solution in the industry!

Our Uptime Focus

SERVING MORE SEGMENTS

0%

20%

40%

60%

80%

100%

120%

With the transition to SCR and product enhancements being rolled out throughout 2014- like the Allison 3000 series in the DuraStar ISB6.7, WorkStar with N9/10 and several other key features in other products- we are better positioned to serve more customers. Currently we can serve:

Product enhancements aimed at nearly full coverage in 2015

HEAVY MEDIUM SEVERE

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f to

tal vo

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e a

va

ilab

le

Enhancements taking place through

FY2015 will further increase

our severe coverage

Increased coverage

lead to increased

market

share

TRUCK PERFORMANCE

The truck segment demonstrated over $190 Million Dollar improvement.  

For Q1-2015, the Truck segment recorded a loss of $18 million, compared with a year-ago first quarter loss of $208 million

The Truck segment’s year-over-year improvement was driven by a shift in product mix toward medium trucks and school buses as well as a $55 million benefit for adjustments to pre-existing warranties.

PARTS

For Q1-2015, the Parts segment recorded a profit of $145 million, compared to a year-ago first quarter profit of $108 million. The 34% increase in the Parts segment profit was primarily due to higher revenues.

OUR PRODUCTS ARE

PERFORMING

WHAT IS THE PROSTAR ES?

The ProStar® ES is part of an ecosystem that combines superior aerodynamics with an optimized drivetrain, customized by our highly experienced Performance Engineering Team and monitored through our exclusive OnCommand™ Connection system. It’s a revolutionary new package designed to provide the best fuel economy.

THE RESULT?

Up to 11% fuel efficiency improvement vs. our fuel efficiency baseline.

Baseline is a 2010 ProStar with MaxxForce13 engine and 10-speed manual transmission

International® ProStar ® with ISX15 in field delivering

nearly 10 MPG!

See the report here: http://www.cumberlandc10.com/performance-

report.html

…and we can demonstrate uptime improvements for these customers. It’s one of the most important new developments in trucking…and Heavy Duty Trucking magazine agrees—it named OnCommand Connection one of its top 20 products of 2014.

UPDATE

OnCommand™ Connection currently supports more than

87,000 vehicles over 200 customers

OnCommand Connection will enables us to increase our customers’ vehicle uptime, supports quicker repairs and helps to control maintenance and repair costs.

After six months of using On Command Connection, one customer experienced a

28% decrease in down days and 31% decrease in repair costs

UPDATE

AIM NationaLease is using the OnCommand Connection portal to quickly respond to fault codes.

Navistar’s OnCommand Connection portal gives fleets a standard platform to monitor the health of vehicles from any manufacturer and quickly respond to fault codes.

Diagnosis from afar: Navistar hitting its stride through telematics - Jack Roberts, CCJ

“Conservatively, McGregor (Fleet manager for Transway) estimates the remote diagnostics portal saves the company $2,000 per day by preventing a breakdown or an unnecessary trip to the dealer that would result in lost revenue and additional driver expenses.” “Fleets are encouraged by its successful and potentially ‘game changing’ work in remote diagnostics and fleet management.”

View the article: http://www.ccjdigital.com/diagnosis-from-afar-navistar-hitting-its-stride-through-telematics/

DON’T JUST TAKE OUR

WORD FOR IT…

“THEY TOLD US WE’D SEE A HUGE GAIN IN FUEL ECONOMY,

AND THEY WERE RIGHT.” —BLAINE KELLY, FLEET MANAGER

Bulk Carriers just purchased 15 brand new ProStars with N13 engines after fleet manager Blaine Kelly, son of owner Jack Kelly, met with a pack of Navistar engineers.

“Right then and there we made the deal,” Blaine says. Since then, he’s been stunned by the leap in performance. “They told us we’d see a huge gain in fuel economy,

and they were right. It’s three-quarters of a mile better [per gallon]. I don’t care who you are; that’s where you make your money at the

end of the day.”

http://www.internationaltrucks.com/trucks/experience/prostar_bulk_carriers

Last year, Royal Trucking purchased 30 brand-new 2014 ProStar trucks. Powered by the new SCR-equipped N13 engine, the trucks are averaging 4% better fuel mileage compared with the previous generation. “With the N13 we are definitely seeing an increase in fuel mileage, but we’re also seeing less downtime,” says Jessie Flemings, Royal’s maintenance manager. “I really think this engine is going to be a star for International.” “We were excited to try the new N13 engines,” adds Royal’s president, Billy Milican. “We have approximately 120,000 miles on the oldest ones and, so far, they perform better and are more economical to run. They’re a big part of our future.”

"We've run our DuraStar with the 9-liter (with SCR) for around 40,000 miles during the last two months," said Robbie Easley, owner, Easley Trucking. "We haul mail and the 9-liter has performed well on the steep hills our trucks climb daily. This truck runs between Phoenix and Yuma, Arizona, one of the hottest environments you can find, and it hasn't missed a beat."

Robbie Easley Owner, Easley Trucking  

“Everyone who runs these trucks is going to see an improvement in fuel economy. The two drivers who are testing the vehicle say it’s quiet and smooth and it has plenty of power. Our people are really happy with it.” -Royal Jones Owner, Mesilla Valley Transportation

TEST TRUCK PERFORMANCE GIVES MESILLA VALLEY TRANSPORTATION TOTAL CONFIDENCE IN NAVISTAR’S N13 WITH SCR.

“Our trucks never shut off. From the time the driver starts in the morning until the time he’s done at night, they’re running. We do get decent fuel economy for what we’re doing, a little better than the Macks.” -Jim Hawkins Owner, J Hawk Water Service

A CONSTRUCTION COMPANY TURNS TO INTERNATIONAL FOR TOUGHER TRUCKS AND SOLID SERVICE

“The versatility of the DuraStar is perfect for us. essentially, it functions as two vehicles in one.”

Greg Raver, Vice President of Fleet Operations, Miller Pipeline

“It doesn’t matter whether it’s hilly terrain in the Southeast or the flatlands in the Midwest. The feedback that I’ve gotten from our drivers has been very positive in terms of comfort, and how they handle different conditions. With the increased power and torque, our drivers are able to get from job site to job site more quickly— and that adds to our bottom line.” –Greg Raver, Miller Pipeline

The results of integration leadership and our laser focus on

quality are undeniable. The

industry recognized our products as being

the best when we

swept the ATD truck of the year awards

with ProStar and TerraStar.

We are seeing great results and the trade industry, as well as investors, are positive about our future.

March  3,  2015  

“Navistar Cuts Fiscal 1Q Loss

“NAV Shows

Improvement:

Outperforms Near-Term

Expectations”

March  3,  2015    

“Navistar reports $42M

first quarter net loss in big

year-over-year gain”

“Navistar Q1 revenues up, losses

down”

March  3,  2015  

“Solid 1Q Beat as Turnaround Progresses”

March  3,  2015   March  3,  2015   March  3,  2015

 

“Navistar Narrows Loss on Cost-Cutting

Initiatives, Higher

Demand”

2015 & BEYOND

•  Best in class quality and uptime

•  Best in class fuel economy

•  Continued technology leadership

•  Continued design and innovation leadership

LOOKING INTO THE FUTURE