January 2021 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.

January 2021 Page 2 PACCAR A Global Technology Company in Commercial Vehicles

2020 Revenues $18.7B 2020 Net Income $1.30B 2020 Avg Dividend Yield 2.5% 82 Years of Consecutive Profitability; Dividend Paid Every Year Since 1941

Truck and Other $13.2B Revenues Aftermarket Parts Premium Quality Light, Medium and $3.9B Revenues Heavy Commercial Vehicles, Diesel and Distribute Aftermarket Parts through Global Alternative Fuel Powertrains Network of over 2,200 Dealerships

Parts 21% Financial Services Truck $1.6B Revenues and Finance and leasing portfolio of 203,000 Other Fin Svcs trucks and trailers, with assets of $15.80B 71% 8%

January 2021 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

January 2021 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.

January 2021 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

January 2021 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.

January 2021 Page 7 PACCAR Truck Production Over 1.5 Million Trucks Produced 2011 - 2020

PACCAR produced 133,300 trucks in 2020

Units 198.8 (000s) 189.1 200 Brasil 154.7 158.9 142.9 Australia 138.0 140.4 137.1 140.9 133.3 Mexico 150 Canada US 100 Europe

50

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

January 2021 Page 8 PACCAR Excellent Financial Performance Throughout the Business Cycle

$ Billions Revenues $ Billions • Reputation for superior operational 28 28 excellence and premium-quality 24 24 20 20 products and services 16 16 12 12 8 8 • Long-term growth in revenues and net 4 4 income reflect increased market share 0 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 in North America and Europe, excellent aftermarket parts performance and growth in financial $ Billions Net Income $ Billions services 2.5 2.5 2.0 2.0 1.5 1.5 • Maintain profitability throughout the 1.0 1.0 cycle due to strong cost control 0.5 0.5 discipline and experienced 0.0 0.0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 management team

January 2021 Page 9 Strong Liquidity

PACCAR maintains a strong liquidity position to manage through all phases of the business cycle

$ Billions PACCAR Liquidity Reserve $ Billions • Strong cash & marketable securities 10 10 position: $5.0 billion as of Dec 31, 2020 8 8

• No manufacturing debt 6 6

• Excellent liquidity reserve for Financial 4 4 Services debt maturities 2 2 • Credit ratings: S&P A+, Moody’s A1 • Finance Company: - - − High quality portfolio secured by truck (2) (2) collateral (4) (4) − Conservative debt to equity ratio of 3.1 (6) (6) as of Dec 31, 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 − Matched-term funding Debt Maturing Next 12 Months Cash & Securities − Currency matched Committed Credit Lines Liquidity Reserve

January 2021 Page 10 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 employees. -6% -6%

-9% -9% 11 12 13 14 15 16 17 18 19 20

PACCAR Volvo Daimler Traton Iveco Navistar

January 2021 Page 11 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 11 12 13 14 15 16 17 18 19 20 PACCAR Volvo Daimler Traton CNH Navistar

January 2021 Page 12 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% 11 12 13 14 15 16 17 18 19 20 PACCAR Volvo Daimler Traton CNH Navistar

January 2021 Page 13 Net Income per Truck

• Net income per truck is Truck Units $/Truck PACCAR’s net income divided by (000s) total truck unit sales. 200 14,000 175 12,250

• Truck sales not only generate 150 10,500 profit from the sale, but also 125 8,750 parts and finance profit. This illustrates the strength of 100 7,000 PACCAR’s business model, 75 5,250 providing the highest quality trucks, aftermarket support and 50 3,500 financing. 25 1,750

0 0 • PACCAR achieved $9,700 net 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 income per truck in 2020. Trucks Net Income per Truck

January 2021 Page 14 Capital Allocation Strategy

• High ROI Capital Investments • 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 10-year annualized growth of 13% • Share Buybacks − $500 Million authorized; $390 Million remaining as of 12/31/2020 • Strategic M&A − Disciplined valuation and screening process − Clear path to value creation • No Unfunded Pension Obligation

January 2021 Page 15 Dividends Declared and Stock Repurchases

$ Millions CAGR = 8% $ Millions 1,500 1,500

1,200 1,200

900 900

600 600

300 300

0 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

Dividends Stock Repurchased

January 2021 Page 16 Excellent Dividend Yield

Average Dividend Yield = 3.5% • PACCAR’s dividend yield, 6% 6% reflects the total quarterly + special dividends declared 5% 5% in the year, divided by the average stock price for the 4% 4% year

3% 3% • PACCAR’s dividend yield has averaged 3.5% over the 2% 2% last ten years 1% 1%

0% 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

January 2021 Page 17 Trucking Moves the Economy 74% 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 - 74% of all the freight transported in 2020. 36.9 million commercial trucks, including Rail 3.9 million heavy-duty trucks, move that 11% freight. The percentage of tonnage by mode is stable over time. Truck 74% Pipeline 10%

Water 5%

January 2021 Page 18 >6t Truck Market

>6t Global Truck Market 2000000 2015 – 2.4 Million China 2020 –3.0 Million 1,750 Europe Russia/CIS

1500000 320 270 60 90

1000000

750

500000 North America

0 385 310

Rest of Asia

300299 210 India Africa & South America Middle East 260 120 185 115

125 125

Australia

20 21 PACCAR Truck Assembly 2015 2020 Units in Thousands >16t Truck Market Size

Units (000s) Units (000s)

350 350

300 300 2021 Market Forecast Estimate

250 250 U.S. and Canada 250,000 – 280,000 200 200 Europe 250,000 – 280,000 150 150 S. America 100,000 – 110,000 100 100

50 50

0 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

US & Canada Europe South America

January 2021 Page 20 January 2021 Page 21 PACCAR Strategy

Quality Technology Innovation Brand Values

Premium Products and Services

Profitable Market Share Growth

Profitable Growth Profitable Geographic Expansion

January 2021 Page 22 PACCAR Investing Throughout the Business Cycle

Operating Cash Flow • Operating cash flow has averaged $2.8 billion for the $ Billions $ Billions last five years and has grown 9% 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 $7.3 billion in capital projects, 0.0 0.0 innovative products and new technologies in the last 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 decade through 2020 • Key investments: Capital Investments and R&D Expenses − DAF XF/CF trucks $ Millions $ Millions 1,200 1,200 − PACCAR MX-13 and MX-11 engine factory in North 1,000 1,000 America 800 800 − Kenworth and Peterbilt 2.1 meter wide cab program in 600 600 North America, South America, and Australia 400 400 200 200 − DAF Brasil factory 0 0 − PACCAR Parts distribution centers 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Capital R&D

January 2021 Page 23 Cumulative PACCAR MX Engines Produced

Cumulative PACCAR MX Engines Produced • The PACCAR MX-13 is the flagship of PACCAR’s # of # of engine line-up with over 530,000 engines produced in Engines Engines Europe and over 240,000 engines installed in North (000s) (000s) America and a growing presence in South America 900 900 and Australia. 800 800 • The PACCAR engine factory in Columbus, MS, 700 700 celebrated 10 years of manufacturing excellence in 600 600 2020 500 500 • PACCAR expanded its engine program in 2013 with 400 400 the introduction of the PACCAR MX-11 in Europe. 300 300 The MX-11 was launched in North America in January 200 200 2016. 100 100 0 0 11 12 13 14 15 16 17 18 19 20

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

January 2021 Page 24 Zero Emission Trucks – Production Begins in Q2 2021

Peterbilt 220 EV Peterbilt 579EV Peterbilt 520 EV

Kenworth 270E Kenworth T680E DAF CF Electric

January 2021 Page 25 Battery Charging Solutions

• PACCAR Parts has introduced new electric vehicle charging stations to support the global launch of electric vehicles • Compatible with Kenworth, Peterbilt and DAF electric trucks and other brands • Charging power from 20 kW up to 350 kW • PACCAR is collaborating with Faith Technologies and Schneider Electric to provide charging infrastructure solutions for customers who purchase Kenworth and Peterbilt electric trucks in the US and Canada.

January 2021 Page 26 Zero Emission Kenworth & Peterbilt Conquer Pikes Peak

• October 16, 2020, Kenworth’s T680 hydrogen fuel cell & Peterbilt’s 579EV battery electric truck became the first Class 8 Zero Emissions vehicles to summit Pikes Peak in Colorado. • Both vehicles made the 14.2 mile Pikes Peak climb with superb acceleration up the steep grades while exhibiting excellent drivability over the 156 turns it takes to reach the 14,115 ft. summit.

January 2021 Page 27 Autonomous Trucks

• In January 2021, PACCAR and Aurora formed a global strategic partnership to develop autonomous Peterbilt 579 and Kenworth T680 trucks • PACCAR’s autonomous vehicle platform will be integrated with the Aurora self- driving technologies • PACCAR customers will benefit from the autonomous vehicles’ enhanced safety and operational efficiency • Kenworth T680 and Peterbilt 579 trucks utilizing the Aurora Driver are expected to be delivered in the next several years Autonomous Peterbilt 579 Test Vehicle with Aurora Driver

January 2021 Page 28 Connected Services

Enhancing connected service for over 400,000 Kenworth, Peterbilt, and DAF trucks

January 2021 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 autonomous trucks • PACCAR Innovation Center establishes strategic partnerships, such as the autonomous vehicle collaboration with Aurora • The Innovation Center truck lab is equipped with the tools needed to integrate emerging technologies.

January 2021 Page 30 PACCAR Global Embedded Services

PACCAR has three embedded service technology centers located at Kenworth in Kirkland, WA, at DAF in Eindhoven, the Netherlands; and in Pune, India. The centers will accelerate embedded software development and connected vehicle solutions to benefit customers’ operating efficiency. Digital Technology Center, Eindhoven, NL

Kenworth Embedded Engineering Center, Kirkland, WA Embedded Service Center, Pune, India

January 2021 Page 31 PACCAR Facility Investments

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

PACCAR Engine Factories Kenworth New Cab Paint Facility, Chillicothe, OH PACCAR Parts Strategy

PACCAR Parts achieved $3.91 billion in sales in PACCAR Parts Sales $ Millions $ Millions 2020. PACCAR Parts has achieved a sales CAGR = 6% 5,000 5,000 CAGR of 6% over the last 15 years. 4,000 4,000 3,000 3,000 Long-Term Growth Drivers: 2,000 2,000 • Growing population of Kenworth, Peterbilt and 1,000 1,000 DAF trucks due to geographic expansion and 0 0 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 market share growth Engine Parts Sales Parts Sales • 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. Louisville PDC will be added in 2022. • Proprietary, PACCAR Genuine and TRP branded parts enhance margins • Growing network of TRP stores Louisville, KY, PDC to Open Early 2022

January 2021 Page 33 PACCAR Parts Distribution Centers and Dealers 18 PDCs in 11 Countries; 2,200+ Dealer Locations

PACCAR Distribution Centers KW, PB, DAF Dealers January 2021 Page 34 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

January 2021 Page 35 Growth in Kenworth and Peterbilt Dealer Locations U.S. and Canada

Locations Locations

900 900 PACCAR MX-13 Introduced in 2010

800 Dealer Investments of $1.9 Billion since 2010 800

70% Growth in Dealer Locations 700 700 Drives Long-Term PACCAR Parts Growth 600 600

500 500

400 400 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

January 2021 Page 36 PACCAR Financial Services Strategy

• PACCAR Financial Services supports truck Total Assets 12/31/20 = $15.8 Billion sales by providing financing and leasing Australia, Mexico & Brasil $1.6 Billion services to PACCAR customers 10% U.S. & Canada $7.5 Billion • In 2020, PACCAR Financial financed 28% of Europe 48% all Kenworth, Peterbilt and DAF trucks $4.1 Billion 26% PacLease • Geographical diversification, disciplined credit $2.6 Billion 16% underwriting, and rigorous portfolio management have enabled PACCAR Financial to earn excellent profits throughout % Low 30+ Days Past Due % the business cycle. 6 6 • Key strategies and investments: 5 5 − Predictive data analytics for credit quality 4 4 3 3 − Expanded used truck centers 2 2 − Mobile finance and credit system 1 1 − E-contract and e-signature 0 0 − Customer on-line portal 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 January 2021 Page 37 Long-Term Growth in PACCAR Heavy Duty Market Share

32% 32%

• Since 2000, PACCAR’s above 16 tonne 28% 28% market share has increased in North America, Europe and South America 24% 24% • Kenworth is the market leader in Australia 20% 20% • PACCAR’s investment in truck 16% 16% manufacturing in Brasil supports 12% 12% PACCAR’s medium-term goal of 10% market share for Kenworth and DAF 8% 8% products in South America. 4% 4%

0% 0% North America Australia Europe S. America

2000 2010 2020

January 2021 Page 38 Long-Term Growth in PACCAR Medium Duty Market Share

25% 25%

• Since 2000, PACCAR’s medium duty 20% 20% market share has increased the U.S. and Canada and in Europe 15% 15% • In the U.S. and Canada, Kenworth and Peterbilt achieved a record share of 22.6% in 2020 10% 10% • DAF share increased to 9.5% in Europe in 2020 5% 5%

0% 0% U.S. and Canada Europe

2000 2010 2020

January 2021 Page 39 Environmental Leadership

CDP “A” Rating Facilities

PACCAR Achieved an “A‐ ” rating for its Environmental Practices; Over 90% of PACCAR Top 15% of over 9,500 Manufacturing Locations Reporting Companies have Achieved ISO 14001 Certification

Science Based Targets

PACCAR announced that it will establish Over 80% of PACCAR new emission reduction Locations are “Zero targets in partnership Waste to Landfill” with the Science Based Targets Initiative

January 2021 Page 40 Fourth Quarter 2020 Earnings

January 2021 Page 41 PACCAR Revenues and Profit

82 consecutive years of net profit

Dividends every year since 1941

4th Quarter Full Year ($ in Millions) 2020 2019 2020 2019 Revenues $5,569 $6,117 $18,729 $25,600

Net Income $406 $531 $1,298 $2,388 Return on Revenues 7.3% 8.7% 6.9% 9.3% Diluted EPS $1.17 $1.53 $3.74 $6.87 New Truck Deliveries (units) 40,800 45,700 133,300 198,800

January 2021 Page 42 2020 Financial Results Fourth Quarter 2020 vs. Fourth Quarter 2019

Sales and Revenues Net Income (Billions of Dollars) (Millions of Dollars) • Sales and Revenues of $5.57 Billion $6.12 $5.57 • Net Income of $405.8 Million $531 • After-tax Return on Revenues of 7.3% $406 • PACCAR Parts Revenues of $1.07 Billion • PACCAR Parts Pretax Income of $222.5 Million • Financial Services Pretax Income of $63.8 Million • R&D Expenses of $71.7 Million • Capital Investments of $130.7 Million

2019 2020 2019 2020 • Deliveries of 40,800 Trucks

January 2021 Page 43 Historical Annual Gross Margins

• Truck margins increased through 2019 due to new products and operating efficiencies Total Manufacturing 15% 15% • Truck margins in 2020 affected by lower production volumes and global pandemic 14% 14% • Parts margins have benefited from distribution 13% 13% and technology investments and growing 12% 12% populations of PACCAR trucks and engines in operation 11% 11% 13 14 15 16 17 18 19 20

Truck Parts 14% 14% 29% 29% 12% 12% 28% 28% 10% 10% 27% 27% 8% 8% 26% 26% 6% 6% 25% 25% 13 14 15 16 17 18 19 20 13 14 15 16 17 18 19 20

January 2021 Page 44 Truck Fourth Quarter 2020 vs. Fourth Quarter 2019

Sales Segment (Billions of Dollars) Pretax Profit $4.69 (Millions of Dollars) • Sales decreased 14%

$4.04 $396 • Pretax operating profit of $234.4 million

• Fourth quarter 2020 deliveries of 40,800 trucks compared to 45,700 trucks in the $234 same period a year ago

2019 2020 2019 2020

January 2021 Page 45 Aftermarket Parts Fourth Quarter 2020 vs. Fourth Quarter 2019

Sales Segment (Millions of Dollars) Pretax Profit (Millions of Dollars) $1,074 • Record 4th quarter sales of $1.07 billion, an $994 $223 increase of 8% $205 • Pretax profit increased 8% to $223 million

• Fourth quarter parts sales and profits benefited from a stronger economy, increased vehicle utilization and growth in PACCAR Parts’ e-commerce platform

2019 2020 2019 2020

January 2021 Page 46 Financial Services Balance Sheet & Fourth Quarter Profit

$ Millions Segment Pretax Profit (Millions of Dollars) 12/31/2020

Finance & Other Receivables $11,821 $68 $64 Equipment on Operating Leases 3,163 Other Assets 816 Total Financial Services Assets $15,800

Commercial Paper & Bank Loans $3,344 2019 2020 Term Notes 7,509 • Robust new financing business Deferred Taxes & Other Liabilities 1,416 • Portfolio performed well with low provision for bad debt and 0.5% past dues Total Financial Services Liabilities 12,269 • High quality portfolio of 203,000 trucks and trailers Equity 3,531 • Increased demand for used trucks and higher pricing • Used truck centers recently opened in Lyon, France, Total Liabilities & Equity $15,800 Denton, Texas, and Prague, Czech Republic. Madrid, Spain, center will open in 2021.

January 2021 Page 47 PACCAR Inc A+/A1 Credit Ratings

($ Millions) • Superb balance sheet 12/31/20 Mfg Cash & Securities $ 4,834 • $4.8 billion in manufacturing cash and securities to support growth Other Manufacturing Assets 7,651 opportunities and investments in all Financial Services Assets 15,800 phases of the cycle Total Assets $ 28,285

• No manufacturing debt – a capital structure that has proven beneficial Manufacturing Debt $ - throughout the business cycle Manufacturing Liabilities 5,601 Financial Services Liabilities 12,269 • A+/A1 credit rating provides excellent Shareholders' Equity 10,415 access to the credit markets for Total Liabilities & Equity $ 28,285 PACCAR Financial Services

January 2021 Page 48 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

January 2021 Page 49 January 2021 Page 50