April 2019 Page 1 Disclosure Regarding Forward-Looking Statements

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.

April 2019 Page 2 PACCAR A Global Technology Company in Commercial Vehicles

2018 Revenues $23.5B 2018 Net Income $2.2B 2018 Dividend Yield 4.6% 80 Years of Consecutive Profitability; Dividend Paid Every Year Since 1941

Aftermarket Parts $3.8B Revenues Truck and Other Distribute Aftermarket Parts through $18.3B Revenues Global Network of over 2,200 Premium Quality Light, Medium and Dealerships Heavy Commercial Vehicles, Diesel Parts Engines and Powertrain Components Financial 16% Svcs Financial Services 6% Truck $1.4B Revenues and Finance and leasing portfolio of Other 198,000 trucks and trailers, with assets 78% of $14.4B

April 2019 Page 3 Our Culture

PACCAR is a company with a great culture and a bright future. Our focus is on doing things in an ethical and disciplined manner. We make decisions utilizing conservative financial principles and common sense for the long-term benefit of our customers, employees and shareholders.

Conservative Highest Operational Long-Term Quality Financial Integrity Excellence Perspective Management

April 2019 Page 4 PACCAR’s business segments include Commercial Vehicles, Powertrain, Aftermarket Parts, Financial Services and Information Technology. PACCAR’s premium brands Kenworth, Peterbilt and DAF are the premier light, medium and heavy duty commercial trucks in their markets. Other brands include PACCAR Powertrain, PACCAR Parts, PACCAR Financial, and PACCAR Leasing.

April 2019 Page 5 Products

6-16t Vocational >16t

• PACCAR’s product investments deliver industry-leading performance and value to our customers

• Our products reflect our core brand values of quality, innovation and technology

April 2019 Page 6 The integrated PACCAR Powertrain is the most advanced powertrain in the market. The PACCAR MX-13 and MX-11 engines are optimally matched to the advanced PACCAR 12-Speed automated transmission and the efficient 40K tandem drive axle to achieve exceptional performance and fuel economy.

The PACCAR MX-13 engine offers 510 hp and 1,850 lb.-ft. of torque and the PACCAR MX-11 engine features 430 hp and 1,650 lb.-ft. of torque. PACCAR designs MX engines to an industry-leading B10 life of one million miles. This means 90% of PACCAR MX- 13 and MX-11 engines are expected to reach one million miles without the need for a major overhaul.

In addition to the PACCAR tandem drive axle, Kenworth and Peterbilt offer the PACCAR steer axle. DAF trucks include a range of lightweight and durable PACCAR front and rear axles.

April 2019 Page 7 PACCAR Truck Production Over 1.3 Million Trucks Produced 2009 - 2018

PACCAR produced a record 189,100 trucks in 2018

Units (000s) 189.1 200 Brasil 154.7 158.9 Australia 138.0 140.4 137.1 142.9 140.9 Mexico 150 Canada US 78.8 100 Europe 61.0

50

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

April 2019 Page 8 PACCAR Excellent Financial Performance Throughout the Business Cycle

$ Billions Revenues $ Billions 25 25 CAGR = 6% 20 20 • Reputation for superior operational 15 15 excellence 10 10 5 5 • Increase in revenues and net income 0 0 reflect growth in market share in North 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 America and Europe, record aftermarket parts sales and growth in Net Income $ Billions $ Billions financial services 2.4 2.4 2.0 CAGR = 9% 2.0 1.6 1.6 • Maintain profitability throughout the 1.2 1.2 cycle due to strong cost control 0.8 0.8 0.4 0.4 discipline and experienced 0.0 0.0 management team 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

April 2019 Page 9 Best-in-Class Operating Efficiency Commercial Vehicle Segment Operating Margin

• PACCAR’s operating margin 12% 12% has been at the top of the industry since 2012, reflecting 9% 9% the premium value of our 6% 6% products and our leadership in operating efficiency. 3% 3%

0% 0% • This is a testament to the outstanding performance of -3% -3% PACCAR’s 28,000 employees. -6% -6% -9% -9% 09 10 11 12 13 14 15 16 17 18 PACCAR Volvo Daimler Volkswagen Iveco Navistar

April 2019 Page 10 Best-in-Class Operating Efficiency Inventory Turns PACCAR’s inventory turns are the highest in the industry, a result of the PACCAR Production System, Lean Manufacturing and Six Sigma

24 24

20 20

16 16

12 12

8 8

4 4

0 0 09 10 11 12 13 14 15 16 17 18 PACCAR Volvo Daimler Volkswagen CNH Navistar

April 2019 Page 11 Best-in-Class Operating Efficiency SG&A % of Sales PACCAR’s SG&A as a percentage of sales is much lower than its peer group, reflecting strong financial discipline

16% 16%

12% 12%

8% 8%

4% 4%

0% 0% 09 10 11 12 13 14 15 16 17 18 PACCAR Volvo Daimler Volkswagen CNH Navistar

April 2019 Page 12 Net Income per Truck

• Net income per truck is Units (000s) $/Truck PACCAR’s net income divided by 200 12,000 total truck unit sales.

160 9,600 • Truck sales not only generate profit from the sale, but also parts and finance profit. This 120 7,200 illustrates the strength of PACCAR’s business model, 80 4,800 providing the highest quality trucks, aftermarket support and 40 2,400 financing.

0 0 • PACCAR achieved record net 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 income per truck in 2018. Trucks Net Income per Truck

April 2019 Page 13 PACCAR Inc A+/A1 Credit Ratings

($ Millions) • Superb balance sheet 3/31/19 Cash & Securities $ 3,815 • $3.8 billion in cash and securities to Manufacturing Assets 7,433 support growth opportunities and investments in all phases of the cycle Financial Services Assets 14,909 Total Assets $ 26,157 • No manufacturing debt – a capital structure that has proven beneficial Manufacturing Debt $ 0 throughout the business cycle Manufacturing Liabilities 5,593 Financial Services Liabilities 11,459 • A+/A1 credit rating provides excellent Shareholders' Equity 9,105 access to the credit markets for Total Liabilities & Equity $ 26,157 PACCAR Financial Services

April 2019 Page 14 Best-in-Class Return on Invested Capital

PACCAR’s high profitability, strong working capital management and prudent investments resulted in best in class return on invested capital of 25.6% in 2018, and an average of 21.8% over the last five years.

2018 Average 2014 - 2018 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0%

ROIC = NOPAT/(Equity + Manufacturing Debt + Postemployment Benefit Liabilities)

April 2019 Page 15 Capital Allocation Strategy

• High ROI Capital Investments − ROIC 25.6% 2018 • Pay Regular Quarterly and Annual Dividend − Dividend paid every year since 1941 − Total dividends paid approximately 50% of net income for many years − Regular quarterly dividend 20-year annualized growth of 11% − Total 2018 dividends declared increased 41% (yoy) • Opportunistic Share Buybacks − $800 Million authorized; $507 Million remaining as of 3/31/19 • Strategic M&A − Disciplined valuation and screening process − Clear path to value creation • Pension fully funded

April 2019 Page 16 Dividends Declared and Stock Repurchases

$ Millions CAGR = 11% $ Millions 1,500 1,500

1,200 1,200

900 900

600 600

300 300

0 0 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Dividends Stock Repurchased

April 2019 Page 17 Excellent Dividend Yield

Average Dividend Yield = 3.0% • PACCAR’s dividend yield, 5% 5% reflects the total quarterly + special dividends declared in the year, divided by the 4% 4% average stock price for the year 3% 3%

• PACCAR’s dividend yield 2% 2% has increased over the last 10 years, and averaged 3.0% 1% 1%

0% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

April 2019 Page 18 Trucking Moves the Economy 71% of U.S. Freight is Moved by Truck

Trucking is the lifeblood of the economy. In the U.S., the economy depends on trucks to deliver ten billion tons of virtually every commodity consumed - Over 70% of all the freight transported annually. 34 million commercial trucks, including 3.7 million heavy-duty trucks, move that freight. The percentage of tonnage by mode is stable over time.

71%

13% 10% 6% Truck Rail Pipeline Water % Total U.S. Freight Tonnage Hauled by Transportation Mode (Source: ATA)

April 2019 Page 19 >6t Truck Market 2013 – 2.7 Million >6t Global Truck Market 2018 – 3.3 Million Europe China Russia/CIS 1,325

370 1060.943 300298.112 1,060 125123.4 95

North America

410 300

Rest of Asia 355 295296 India Africa & 400 South America Middle East 190188255

195197.3 180 225 130

Australia

2222 27 PACCAR Truck Assembly 2013 2018 Units in Thousands >16t Truck Manufacturing 2018 Production (Units 000s)

Daimler FAW • PACCAR competes globally with Dongfeng truck manufacturers from North Volvo Sinotruk America, Europe and Asia Volkswagen Shaanxi PACCAR #8 th Tata Motors • PACCAR was the 8 largest Beijing Foton heavy-duty manufacturer in the Ashok Leyland th Hino world last year, 4 among the Hongyan multinational competitors. (China Navistar Jianghuai had 4 of the top seven producers KamAZ Total Production 2018 = 2.4 Million on record production in 2018) Dayun Iveco Isuzu Hualing 0 50 100 150 200 250 300

April 2019 Page 21 >16t Truck Market Size Outlook

Units Estimate 2019 U.S. and Canada 295,000 – 315,000 Europe 290,000 – 320,000 S. America 105,000 – 115,000 Units (000s) Units (000s) 350 350

300 300

250 250

200 200

150 150

100 100

50 50

0 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 US & Canada Europe South America

April 2019 Page 22 April 2019 Page 23 PACCAR Strategy

Quality Technology Innovation BrandValues

Premium Products and Services

Profitable Market Share Growth

Profitable Growth Profitable Geographic Expansion

April 2019 Page 24 PACCAR Investing Throughout the Business Cycle

Operating Cash Flow • Operating cash flow has averaged $2.5 billion for the $ Billions $ Billions last five years and has grown 8% annually over the 3.0 3.0 2.5 2.5 last 20 years 2.0 2.0 • Strong operating cash flow enables PACCAR to 1.5 1.5 invest in growth throughout the business cycle 1.0 1.0 0.5 0.5 • PACCAR has invested $6.1 billion in capital projects, 0.0 0.0 innovative products and new technologies in the last 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 decade • Key investments: Capital Investments and R&D Expenses − International Truck of the Year 2018 DAF XF/CF trucks $ Millions $ Millions 1,000 1,000 − PACCAR MX-13 and MX-11 engine factory in North 800 800 America 600 600 − Kenworth and Peterbilt 2.1 meter wide cab program in 400 400 North America, South America, Australia 200 200 − DAF Brasil factory 0 0 − PACCAR Parts Distribution Centers 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Capital R&D

April 2019 Page 25 Cumulative PACCAR MX Engines Produced

• The PACCAR MX-13 is the flagship of PACCAR’s # of Cumulative PACCAR MX Engines Produced # of engine line-up with 454,000 engines in operation in Engines Engines Europe and 188,000 engines in operation in North (000s) (000s) America and a growing presence in South America 700 700 and Australia. 600 600 • Produced the 200,000th MX engine for North 500 500 America in March 2019 • PACCAR expanded its engine program in 2013 400 400 with the introduction of the PACCAR MX-11 in 300 300 Europe. The MX-11 was launched in North America in January 2016. 200 200 100 100

0 0 09 10 11 12 13 14 15 16 17 18

DAF MX 13 KW/PB MX 13 MX 11 PACCAR MX-13 PACCAR MX-11 12.9 Liter 10.8 Liter

April 2019 Page 26 Emerging Truck Technology Trends

PACCAR is deploying many emerging technologies to meet customer expectations and reduce operating costs

Connectivity Human Centered Design Driver Assistance Systems

• Vehicle Uptime • Driver Environment • Road User Safety

• Artificial Intelligence • Human Machine Interface • Driver Shortage

• Advanced Fleet Management • Augmented Reality • Autonomous Trucks

April 2019 Page 27 PACCAR Emerging Technology Programs

Alternative Powertrain Vehicles Connected Trucks

Platooning Autonomous Truck Development Alternative Powertrain Vehicles

PACCAR has introduced several alternative powertrain trucks currently in field-testing with customers

XF/CF Hybrid CF Electric Electric Range 20 Miles Electric Range 75 Miles LF Electric Electric Range 135 Miles

Kenworth Hybrid Electric Electric Range 250 Miles

Peterbilt Electric Refuse Peterbilt Electric Port Kenworth Hydrogen Port Electric Range 80 Miles Electric Range 150 Miles Electric Range 150 Miles

April 2019 Page 29 PACCAR Innovation Center, Sunnyvale, CA

• PACCAR Innovation Center in Silicon Valley enhances PACCAR’s access to emerging technologies and talent from around the world.

• The Innovation Center collaborates with other PACCAR engineering teams to develop next generation technologies such as an SAE Level 4 autonomous truck

• The Innovation Center truck lab is equipped with the tools needed to integrate emerging technologies.

April 2019 Page 30 PACCAR Facility Investments

DAF Factory, Ponta Grossa, Brasil Dynacraft, McKinney, Texas

PACCAR Engine Factories DAF Cab Paint Facility, Westerlo, Belgium PACCAR Parts Strategy

PACCAR Parts achieved $3.8 billion in sales in PACCAR Parts Sales $ Millions $ Millions CAGR = 8% 2018, a 15% increase over a year ago and a 4,000 4,000 CAGR of 8% over the last 15 years 3,000 3,000

2,000 2,000 Growth Drivers: 1,000 1,000 • Growing population of Kenworth, Peterbilt and 0 0 DAF trucks due to geographic expansion and 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 market share growth • Growing population of PACCAR engines due to North America introduction in 2010 • Best-in-class Distribution Network − 18 parts distribution centers and 2,200+ dealer locations • Proprietary, PACCAR Genuine and TRP branded parts enhance margins • Growing network of TRP stores Toronto Parts Distribution Center opened October 2018 April 2019 Page 32 PACCAR Parts Distribution Centers and Dealers 18 PDCs in 11 Countries; 2,200+ Dealer Locations

PACCAR Distribution Centers KW, PB, DAF Dealers April 2019 Page 33 PACCAR Global Dealer Network

• Independent dealer network of 2,200+ dealer locations • Premium customer experience • Strong dealer profitability and expanded opportunities from PACCAR engines and TRP stores • Competitive flooring and retail financing provided by PACCAR Financial and PACCAR Leasing

April 2019 Page 34 Growth in Kenworth and Peterbilt Dealer Locations U.S. and Canada

Locations Locations

800 PACCAR MX-13 Introduced in 2010 800

Dealer Investments of $1.3 Billion since 2010 700 700 70% Growth in Dealer Locations

Drives Long-Term PACCAR Parts Growth 600 600

500 500

400 400 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 April 2019 Page 35 PACCAR Financial Services Strategy

• PACCAR Financial Services supports truck Total Assets 12/31/18 = $14.4 Billion sales by providing financing and leasing Australia & Mexico $1.4 Billion services to PACCAR customers 10% U.S. & Canada $7.0 Billion • In 2018, PACCAR Financial financed 24% of Europe 48% all Kenworth, Peterbilt and DAF trucks $3.6 Billion 25% PacLease • Geographical diversification, disciplined credit $2.4 Billion 17% underwriting, and rigorous portfolio management have enabled PACCAR Financial to earn excellent profits throughout % Low 30+ Days Past Due % the business cycle. 8 8 • Key strategies and investments: 7 6 6 − Predictive data analytics for credit quality 5 4 4 − Expanded used truck centers 3 − Mobile finance and credit system 2 2 1 − E-Contract and e-signature 0 0 − Customer on-line portal 91 94 97 00 03 06 09 12 15 18 April 2019 Page 36 Long-Term Growth in PACCAR Heavy Duty Market Share

30% 30% • Since 1998, PACCAR’s above 16 tonne market share has increased in all home 25% 25% markets 20% 20% • DAF achieved record 16.6% share in Europe in 2018, which improved to 17.1% in 1Q19 15% 15% • Kenworth is the market leader in Australia 10% 10% • PACCAR’s investment in truck manufacturing in Brasil supports 5% 5% PACCAR’s medium-term goal of 10% market share for Kenworth and DAF 0% 0% products in South America. North America Australia Europe S. America

1998 2008 2018

April 2019 Page 37 DAF Brasil

• DAF Entered Market in 2013 • 36 Dealer Locations Off Highway On Highway • Heavy Duty Trucks Sales of 2,300 in 2018 • Market Share 6.7% in 2018 • Local Assembly of PACCAR MX Engines Since 2016 • Fenabrave Brand of the Year in 2016, 2017 & 2018 • Introducing PACCAR Financial in 2019

April 2019 Page 38 PACCAR Mexico

• Kenworth Began Producing Trucks in 1960 • 133 Dealer Locations • 284,000 Units Built • Heavy Duty Trucks Sales of 8,900 in 2018 • Heavy Duty Market Share of 34.7% in 2018 • Kenworth Launched 2.1m Trucks in 2013 • Introduced PACCAR MX-13 Engine in 2013

April 2019 Page 39 DAF Russia

• DAF Russia established in 2011 • Heavy Duty Market – 62,000 Trucks in 2018 • 50 DAF, Kenworth and TRP Dealer Locations • Heavy Duty Trucks Sales of 2,700 in 2018 • Market Share 4.2%; 10.1% of European Brands in 2018

April 2019 Page 40 DAF Taiwan

• Started Production in 2006

• 17 Dealer Locations

• Introduced Medium Duty LF in 2013

• Delivered >6,000 units through 2018

• Trucks Sales of 1,000 in 2018

• Heavy Duty Market Share of 16.3% in 2018

April 2019 Page 41 Environmental Leadership

CDP Climate Change A List – Top 2% of 6,900 Reporting Companies Reduce Environmental Impact Through Product Design Natural Gas Truck Market Share Leader in US and Canada Alternative Powertrain Vehicles (Natural Gas, Hydrogen Fuel Cell, Electric, Hybrid) 93% of Factories are ISO 14001 Certified 75% of Factories are Zero Waste to Landfill

April 2019 Page 42 First Quarter 2019 Earnings

April 2019 Page 43 PACCAR Revenues and Profit

80 consecutive years of net profit

Dividends every year since 1941 First Quarter ($ in Millions) 2018 2019 Revenues $5,654 $6,488

Net Income $512 $629 Return on Revenues 9.1% 9.7% Diluted EPS $1.45 $1.81 Number of Trucks Delivered 44,500 51,500

April 2019 Page 44 2019 Financial Results First Quarter 2019 vs. First Quarter 2018

Sales and Revenues Net Income (Billions of Dollars) (Millions of Dollars) • Record Sales and Revenues of $6.49 Billion $6.49 $629 • Record Deliveries of 51,500 Trucks $5.65 $512 • Record Net Income of $629.0 Million • After-tax Return on Revenues of 9.7% • Record PACCAR Parts Revenues of $1.00 Billion • Record PACCAR Parts Pretax Income of $208 Million, a 20.7% Pretax Return on Revenues • Financial Services Pre-Tax Income of $84 Million • R&D Expenses of $78.3 Million • Capital Investments of $134.3 Million

2018 2019 2018 2019

April 2019 Page 45 Gross Margins

Excellent Truck and Parts Gross Margins Total Manufacturing 16% 16% • Truck margins have increased due to new 15% 15% products and operating efficiencies 14% 14% • Parts margins have benefited from 13% 13% investments and growing populations of PACCAR trucks and engines 12% 12% 13 14 15 16 17 18 1Q19

Truck Parts 13% 13% 28% 28%

12% 12% 27% 27%

11% 11% 26% 26%

10% 10% 25% 25% 13 14 15 16 17 18 1Q19 13 14 15 16 17 18 1Q19

April 2019 Page 46 Truck First Quarter 2019 vs. First Quarter 2018

Sales Segment (Billions of Dollars) Pretax Profit (Millions of Dollars) $517 • Sales Increased 17% (yoy) $5.11

$4.35 $395 • Pretax Profit Increased 31%

• Record Quarterly Deliveries of 51,500

Trucks, a 16% Increase

• Price Realization of 3%

2018 2019 2018 2019

April 2019 Page 47 Aftermarket Parts First Quarter 2019 vs. First Quarter 2018

Sales Segment • Sales Increased 7% (Millions of Dollars) Pretax Profit (Millions of Dollars) • Pretax Profit Increased 8%

$1,005 $940 $208 • Results Driven by Investments in Parts $192 Distribution Centers (PDCs); Increased Dealer Locations, Including TRP Stores; Expanded PACCAR-Branded and TRP All-Makes Product Lines; Fleet Services and e- Commerce Programs; and increased PACCAR trucks and MX engines in operation

2018 2019 2018 2019 • New PDC opened in Toronto in October 2018

April 2019 Page 48 Financial Services First Quarter 2019 vs. First Quarter 2018

Revenues Segment (Millions of Dollars) Pretax Profit • Revenues Increased 5% (Millions of Dollars)

$350 $84 • Pretax Profit Growth of 24% $332

$68 • Increased Earning Assets • Strong Demand for Used Trucks

− Opening Used Truck Centers in Prague, Czech Republic, and Denton, Texas, in 2019

• Record Portfolio of 202,000 Trucks and Trailers

2018 2019 2018 2019 • Total Assets of $14.9 Billion

April 2019 Page 49 PACCAR Competitive Advantages

Experienced Management Team

Highest Quality Products

Rigorous Cost Control

Excellent Supplier Partnerships

Innovative Technology

Global Aftermarket Parts Sales

Profitable Financial Services

Strongest Dealer Network

April 2019 Page 50 April 2019 Page 51