Paccar : Q4 2021 Earnings Statement

PACR

Press Release

PACCAR Inc

Public Affairs Department

P.O. Box 1518

Bellevue, WA 98009

Contact:	Ken Hastings
	[phone]
	[e-mail]

FOR IMMEDIATE RELEASE

PACCAR Achieves Very Good Annual Revenues and Net Income

PACCAR Parts and PACCAR Financial Services Achieve Record Profits

January 25, 2022, Bellevue, Washington - "PACCAR reported very good annual revenues and net income in 2021," said Preston Feight, chief executive officer. "PACCAR's results reflect record aftermarket parts and financial services profits. Customer demand for the new Kenworth, Peterbilt and DAF trucks introduced in 2021 is very strong. Kenworth, Peterbilt and DAF delivered 47,600 trucks in the fourth quarter, 45% higher than in the third quarter, reflecting an improvement in the global supply chain. I am very proud of our employees who have delivered outstanding trucks and transportation solutions to our customers while demonstrating the highest commitment to health and safety."

PACCAR achieved quarterly revenues of $6.69 billion in the fourth quarter of 2021, compared to the $5.57 billion reported in the same period in 2020. The company earned $511.4 million ($1.47 per diluted share) in the fourth quarter of 2021, 26% higher than the $405.8 million ($1.17 per diluted share) earned in the fourth quarter of 2020. PACCAR achieved revenues of $23.52 billion in 2021, compared to revenues of $18.73 billion in 2020. The company earned $1.85 billion ($5.32 per diluted share) in 2021, compared to $1.30 billion ($3.74 per diluted share) earned in 2020.

"PACCAR is investing in new technologies that deliver enhanced operational efficiency and environmental benefits to our customers. PACCAR delivered several important technology and innovation milestones in 2021. These include introducing the exciting new heavy- and medium-duty Kenworth, Peterbilt and DAF vehicles, implementing a strategic partnership to develop autonomous trucks, launching production of zero emissions trucks, and enhancing connected services for Kenworth, Peterbilt and DAF trucks," added Feight.

PACCAR Dividends

PACCAR declared cash dividends of $2.84 per share during 2021. Dividends declared in 2021 included a $1.50 per share extra cash dividend paid in January 2022. "PACCAR has generated excellent shareholder returns and annual net income due to its innovative, premium-quality products, strong growth and profitability of aftermarket parts and services including e-commerce, and continued expansion of its financial services," shared Mark Pigott, executive chairman.

Next Generation Kenworth T680

Business Highlights - 2021

• PACCAR earned its 83rd consecutive year of net income.
• PACCAR delivered 162,700 vehicles worldwide.
• DAF launched the new generation DAF XF, XG and XG+ trucks.
• Kenworth and Peterbilt launched the new Kenworth T680 and Peterbilt 579 heavy-duty trucks.
• Kenworth and Peterbilt launched new medium-duty truck models.
• Kenworth, Peterbilt and DAF began production of battery electric vehicles.
• The new DAF XF, XG and XG+ trucks earned the prestigious International Truck of the Year 2022 award.
• The DAF XF hydrogen powered truck earned the Truck Innovation Award 2022.
• The DAF XF truck earned the U.K. Fleet Truck of the Year award for the third consecutive year.
• Kenworth and Peterbilt achieved five Manufacturing Leadership Awards from the National Association of Manufacturers.
• DAF Brasil was recognized as the Truck Brand of the Year in Brasil for the fourth time by the industry association FENABRAVE.
• PACCAR was honored as a 2021 Top Company for Women to Work for in Transportation, and three PACCAR women executives were recognized for their industry leadership, by the Women in Trucking Association.
• PACCAR earned an elite "A" rating from CDP for its environmental practices, placing the company in the top 200 of over 13,000 reporting companies worldwide.

Financial Highlights - Fourth Quarter 2021

Highlights of PACCAR's financial results during the fourth quarter of 2021 include:

• Consolidated revenues of $6.69 billion.
• Net income of $511.4 million.
• Record PACCAR Parts revenue of $1.31 billion.

• Record PACCAR Parts pretax income of $306.4 million.
• Record PACCAR Financial Services pretax income of $134.6 million.

Financial Highlights - Full Year 2021

Highlights of PACCAR's financial results during 2021 include:

• Consolidated revenues of $23.52 billion.
• Net income of $1.85 billion.
• Record PACCAR Parts revenue of $4.94 billion.
• Record PACCAR Parts pretax income of $1.10 billion.
• Financial Services assets of $15.42 billion.
• Record Financial Services new business volume of $5.67 billion.
• Record Financial Services pretax income of $437.6 million.
• Cash provided by operations of $2.19 billion.
• Dividends declared of $988.1 million.
• Medium-termnote issuances of $1.97 billion.
• PACCAR invested $835.9 million in capital projects and research and development.
• Record stockholders' equity of $11.44 billion.

Global Truck Markets

"U.S. economic growth in 2021 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 250,000 units in 2021. Kenworth and Peterbilt achieved market share of 29.2%," said Darrin Siver, PACCAR senior vice president. "The new Kenworth T680 and Peterbilt 579 vehicles provide customers with up to 7% increased fuel efficiency, which enhances their operating performance and benefits the environment." U.S. and Canada Class 8 truck industry retail sales are estimated to be in a range of 250,000-290,000 trucks in 2022, based on good economic growth and strong freight demand.

Next Generation Peterbilt 579

European above 16-tonne truck industry registrations were 278,000 trucks in 2021. It is estimated that European truck industry registrations in the above 16-tonne market in 2022 will be in the range of 260,000-300,000 trucks. "European truck demand strengthened in 2021 due to good European economic growth," said Harry Wolters, DAF president. "DAF achieved above 16-tonne market share of 15.9% in 2021."

The new DAF XF, XG and XG+ earned the International Truck of the Year 2022 award, as judged by an independent jury of leading European transportation journalists. DAF is the first truck manufacturer to introduce a new generation of trucks utilizing the new European regulations for truck masses and dimensions, resulting in a range of highly attractive and aerodynamic trucks which feature industry-leading fuel efficiency, safety and a luxurious cab for driver comfort. Harry Wolters, DAF president, commented, "The new DAF trucks provide excellent performance and premium features, including a 10% fuel efficiency gain, side view cameras, more interior space and a customizable digital dashboard."

DAF XG+

The South American above 16-tonne truck market was 127,000 vehicles in 2021, and is projected to be in the range of 125,000-135,000 trucks in 2022. DAF Brasil achieved a record 5.7% market share in the Brasil above 16-tonne market in 2021. "DAF was honored as the 2021Truck Brand of the Year by the industry association FENABRAVE, reflecting increased customer demand for the industry-leading DAF trucks," said Mike Kuester, vice president of South America.

Hydrogen Powered DAF Truck Earns Truck Innovation Award 2022

A DAF XF technology truck, powered by an innovative hydrogen engine, earned the Truck Innovation Award 2022. Ron Borsboom, DAF executive director of product development, noted, "This achievement highlights PACCAR's research and development strategy to explore a broad range of propulsion technologies for commercial vehicles. Hydrogen internal combustion

engines offer near-zero emissions and leverage PACCAR's proven technology and manufacturing facilities, while contributing to PACCAR's environmental leadership."

PACCAR Parts Achieves Record Revenues and Profits

PACCAR Parts achieved record fourth quarter pre-tax income of $306.4 million, 38% higher than the $222.5 million earned in the fourth quarter of 2020. Fourth quarter 2021 revenues were a record $1.31 billion compared to $1.07 billion reported in the fourth quarter of 2020. PACCAR Parts achieved record annual pre-tax income of $1.10 billion, 38% higher than the $799.3 million earned in 2020. Annual revenues were $4.94 billion compared to $3.91 billion in 2020. David Danforth, PACCAR vice president and PACCAR Parts general manager, said, "PACCAR Parts provides strong profitability through all phases of the business cycle. PACCAR Parts' long-term growth reflects investments in distribution and technology, initiatives such as e-commerce, TRP all-makes parts, and a growing population of integrated and connected PACCAR vehicles with PACCAR MX Engines."

PACCAR Parts' 18 global distribution centers (PDCs) support over 2,200 DAF, Kenworth and Peterbilt dealer locations and deliver industry-leading customer service. PACCAR will open a new 260,000 square-foot PDC in Louisville, Kentucky this year to further enhance parts availability for customers.

PACCAR Parts Online Parts Counter

PACCAR Financial Services Achieves Record Quarterly Profits

PACCAR Financial Services (PFS) offers competitive retail financing to Peterbilt, Kenworth and DAF dealers and customers. PFS has a portfolio of 204,000 trucks and trailers, with total assets of $15.42 billion. PacLease, a major full-service truck leasing company in North America and Europe with a fleet of over 39,000 vehicles, is included in this segment.

PFS achieved record fourth quarter 2021 pretax income of $134.6 million, more than double the $63.8 million earned in the fourth quarter of 2020. Fourth quarter 2021 revenues were $390.4