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.

Page 2 July 2016

Page 3July 2016

Commercial Vehicles Aftermarket Support

Financial ServicesInformation Technology

Powertrain

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

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

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)

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

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

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

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

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

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

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

Page 14 July 2016

New Products and Technologies

Action Plan

Automated Notification

Off-Board Diagnostics

Resolution Fault Detected

Remote Diagnostics

Page 15 July 2016

New Facility Investments

• Westerlo

Kenworth, Chillicothe, Ohio PACCAR Parts Distribution Center, Renton, WA

Peterbilt, Denton, Texas DAF, Westerlo, Belgium

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

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

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)

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

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

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

Page 22 July 2016

PACCAR Parts Distribution Centers and Dealers

PACCAR Distribution Centers

Page 23 July 2016

Eindhoven, NL Lancaster, PA

Ponta Grossa, BR

PACCAR Parts Investments

Renton, WA

Page 24 July 2016

PACCAR Global Dealer Network

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

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

Page 27 July 2016

Taiwan Russia

Brasil India

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

Page 29 July 2016

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

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

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%

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

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

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

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)

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

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

Page 39 July 2016