Paccar : Q4 2020 Earnings Statement

PACR

Press Release

PACCAR Inc

Public Affairs Department

P.O. Box 1518

Bellevue, WA 98009

Contact: Ken Hastings

1. [e-mail]

FOR IMMEDIATE RELEASE

PACCAR Achieves Good Annual Revenues and Net Income

Strong Truck Deliveries and Aftermarket Sales Drive Results

January 26, 2021, Bellevue, Washington - "PACCAR reported good annual revenues and profits in 2020," said Preston Feight, chief executive officer. "PACCAR's results reflect the company's premium-quality products and services, excellent operational efficiency and strong aftermarket parts sales. I am very proud of our employees who have delivered outstanding products and transportation solutions to our customers while demonstrating the highest commitment to health and safety at all PACCAR facilities."

"PACCAR is investing in new technologies that will deliver enhanced operational efficiency and environmental benefits to our customers. PACCAR made progress on several important technology and innovation initiatives in 2020, including a strategic partnership to develop autonomous trucks, the launch of electric truck production, and enhancing connected services for Kenworth, Peterbilt and DAF trucks," added Feight.

PACCAR achieved quarterly revenues of $5.57 billion in the fourth quarter of 2020, compared to the $6.12 billion reported in the same period in 2019. The company earned $405.8 million ($1.17 per diluted share) in the fourth quarter of 2020, compared to earnings of $531.3 million ($1.53 per diluted share) in the fourth quarter of 2019. PACCAR achieved revenues of $18.73 billion in 2020, compared to revenues of $25.60 billion in 2019. The company earned $1.30 billion ($3.74 per diluted share) in 2020, compared to $2.39 billion ($6.87 per diluted share) earned in 2019.

Peterbilt 220EV Battery Electric Truck

PACCAR Dividends

PACCAR declared cash dividends of $1.98 per share during 2020. Dividends declared in 2020 included a $.70 per share extra cash dividend paid in January 2021. "PACCAR has generated excellent shareholder returns and annual net income due to its industry leading premium-quality global products, strong growth of aftermarket parts and services, innovative use of technology, including e-commerce, and continued expansion of its financial services," shared Mark Pigott, executive chairman.

Business Highlights - 2020

• PACCAR earned its 82nd consecutive year of net income.
• PACCAR delivered 133,300 vehicles worldwide.
• Kenworth and Peterbilt increased U.S. and Canada Class 8 retail sales market share to 30.1%.
• Kenworth and Peterbilt increased U.S. and Canada medium-duty retail sales market share to a record 22.6%.
• DAF increased Europe above 16-tonne registrations market share to 16.3%.
• DAF Brasil achieved record above 16-tonne retail sales market share of 5.7%.
• The DAF XF truck earned the Fleet Truck of the Year 2020 award in the United Kingdom.
• The DAF CF and XF model ranges won the prestigious international Good Design Awards for outstanding design and innovation.
• DAF Leyland received the prestigious Queen's Award for Enterprise in International Trade 2020 for increasing exports by almost 50% over the last three years.
• PACCAR achieved five awards from the National Association of Manufacturers: Kenworth Chillicothe earned two Operational Excellence Leadership awards; Peterbilt achieved a Talent Management Leadership award and an Operational Excellence Leadership award; and PACCAR Ste-Therese was recognized in Manufacturing Leadership.
• PACCAR Inc, Peterbilt, Kenworth, PACCAR Parts and Dynacraft were each recognized as top workplaces for women by Women in Trucking, an organization that promotes the employment and success of women in the trucking industry.
• PACCAR earned an "A-" rating from CDP for its environmental practices, placing the company in the top 15% of over 9,500 reporting companies worldwide.

Financial Highlights - Fourth Quarter 2020

Highlights of PACCAR's financial results during the fourth quarter of 2020 include:

• Consolidated net sales and revenues of $5.57 billion.
• Net income of $405.8 million.
• Record quarterly PACCAR Parts revenue of $1.07 billion.
• Record quarterly PACCAR Parts pretax income of $222.5 million.
• PACCAR Financial Services pretax income of $63.8 million.
• PACCAR invested $202.4 million in capital projects and research and development.

Financial Highlights - Full Year 2020

Highlights of PACCAR's financial results during 2020 include:

• Consolidated revenues of $18.73 billion.
• Net income of $1.30 billion.
• PACCAR Parts revenue of $3.91 billion.
• PACCAR Parts pretax income of $799.3 million.

• Financial Services assets of $15.80 billion.
• Financial Services new business volume of $5.02 billion.
• Financial Services pretax income of $223.1 million.
• Cash provided by operations of $2.99 billion.
• Dividends declared of $687.1 million.
• Medium-termnote issuances of $1.99 billion.
• PACCAR invested $843.4 million in capital projects and research and development.
• Record year-end stockholders' equity of $10.42 billion.

Global Truck Markets

"A strong rebound in manufacturing, housing starts, automotive production and consumer spending in the second half of 2020 resulted in good freight tonnage and robust demand for Kenworth and Peterbilt trucks. Class 8 truck industry retail sales in the U.S. and Canada were 216,500 units in 2020. Kenworth and Peterbilt achieved market share of 30.1%," said Darrin Siver, PACCAR senior vice president. "PACCAR has increased its estimate of 2021 U.S. and Canada Class 8 truck industry retail sales to a range of 250,000-280,000 trucks."

European above 16-tonne truck industry registrations were 230,500 trucks in 2020. It is estimated that European truck industry registrations in the above 16-tonne market in 2021 will be in the range of 250,000-280,000 trucks. "European truck demand improved in the second half of the year along with the European economies," said Harry Wolters, DAF president. "DAF achieved excellent above 16-tonne market share of 16.3% in 2020. DAF trucks deliver premium quality, exceptional fuel efficiency and superior driver comfort for its customers."

The South American above 16-tonne truck market was 93,000 vehicles in 2020, and is projected to be in a range of 100,000-110,000 trucks in 2021. DAF Brasil achieved a record 5.7% market share in the Brasil above 16-tonne market in 2020. "DAF Brasil's record market share reflects increased customer demand for the industry-leading DAF XF trucks introduced this year," said Mike Kuester, assistant vice president of South America.

PACCAR Announces Strategic Partnership with Aurora to Develop Autonomous Trucks PACCAR signed a global strategic agreement with Aurora, a leader in autonomous driving technologies, to develop autonomous Peterbilt 579 and Kenworth T680 trucks. "This partnership will integrate PACCAR's autonomous vehicle platform with the Aurora self-drivingtechnologies. PACCAR's customers will benefit from the autonomous vehicles' enhanced safety and operational efficiency," said Kyle Quinn, PACCAR chief technology officer. "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

Kenworth, Peterbilt and DAF Demonstrate Zero Emissions Leadership

A fuel cell electric Kenworth T680 and a battery electric Peterbilt 579EV recently became the first Class 8 zero emissions vehicles to drive to the 14,115 foot summit of Pikes Peak in Colorado. Both vehicles displayed superb power and exhibited excellent drivability over the 156 turns and switchbacks during the 4,700-foot elevation gain to the summit. The trucks handily negotiated the famous Pikes Peak International Hill Climb course. "PACCAR leads the industry in the development of zero emissions commercial vehicles," said Darryl Oster, chief engineer global zero emissions.

Peterbilt 579EV and Kenworth T680 Fuel Cell Trucks Ascend Pikes Peak

The Kenworth T680 fuel cell electric vehicle offers 470 hp and a 350-mile range with a 15- minute refill time. Kenworth and Toyota Motor North America are collaborating on a project to develop Kenworth T680 zero emissions trucks powered by hydrogen fuel cell electric powertrains.