Publics ENGL 295/CINE 295 401/COML ... - Department of English
This presentation may contain statements that are …2016 – 2.7 Million 2011 2016 330 100 North...
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Transcript of This presentation may contain statements that are …2016 – 2.7 Million 2011 2016 330 100 North...
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 2017
Page 3 July 2017
Aftermarket Support
Financial Services Information Technology
Powertrain
Commercial Vehicles
Page 4 July 2017
PACCAR Strategy
Premium Products and Services
Profitable Market Share Growth
Geographic Expansion
Quality Technology Innovation
Page 5 July 2017
PACCAR Values
Highest Integrity
Operational Excellence
Conservative Financial
Management Quality Long Term
Perspective
Page 6 July 2017
Trucking Moves the Economy If you bought it, it probably was delivered by a truck
69%
15% 10% 6% Truck Rail Pipeline Water
% Total U.S. Freight Tonnage Hauled by Transportation Mode
Page 7 July 2017
Units in Thousands PACCAR Truck Assembly
2011 – 2.9 Million 2016 – 2.7 Million
2011 2016
330
100
North America
South America
275
235
355
215
Africa & Middle East
EU28
305
205
332583 295
1172.559
132.4
60 960
India 213
355 210
Rest of Asia
Russia/CIS China
17 20 17
Australia
130 1,175
335
Global >6T Truck Markets
Page 8 July 2017
Heavy Duty Commercial Vehicles
0
50
100
150
200
250
300
350
0
50
100
150
200
250
300
350
99 01 03 05 07 09 11 13 15 17 Fcst
Units (000s) Units (000s)
US & Canada Europe South America
Page 9 July 2017
PACCAR Heavy Duty Market Share
0%
5%
10%
15%
20%
25%
30%
35%
40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
S. America Europe Australia U.S. and Canada Mexico
2006 2016
Page 10 July 2017
>16T Truck Manufacturing 2016 Production (Units 000’s)
0 50 100 150 200 250
HualingHongyan
DayunIsuzu
NavistarKAMaz
HinoIveco
JianghuaiAshok Leyland
Beijing FotonTata Motors
ShaanxiSinotrukPACCAR
DongfengVolkswagen
FAWVolvo
Daimler
#6
Total Production 2016 = 1.8 Million
Page 11 July 2017
0
20
40
60
80
100
120
140
160
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Brasil
Australia
Europe
Mexico
Canada
US
133,900 125,900
61,000
78,800
138,000 140,400
137,100
PACCAR Truck Production 1.3 Million Trucks Produced 2007-2016
142,900 154,700
140,900
Page 12 July 2017
0150300450600750900
0150300450600750900
96 98 00 02 04 06 08 10 12 14 16
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 98 00 02 04 06 08 10 12 14 16
Operating Cash Flow $ Millions $ Millions $ Billions $ Billions
0
5
10
15
20
0
5
10
15
20
96 98 00 02 04 06 08 10 12 14 16
$ Billions $ Billions Revenue
0.00.30.60.91.21.51.8
0.00.30.60.91.21.51.8
96 98 00 02 04 06 08 10 12 14 16*
$ Millions $ Millions Net Income
Net Income Adjusted Net Income *
7% 5% (10% Adj. NI)**
10%
* 2016 adjusted net income excludes non-recurring European Commission charge of $833 million. See appendix for supplementary information on Non-GAAP measures. ** 10% Compounded Annual Growth Rate was determined using Adjusted Net Income of $1,355 million.
Page 13 July 2017
Best-in-Class Operating Efficiency Commercial Vehicle Segment Operating Margin
-9%
-6%
-3%
0%
3%
6%
9%
12%
15%
-9%
-6%
-3%
0%
3%
6%
9%
12%
15%
07 08 09 10 11 12 13 14 15 16
PACCAR Volkswagen Daimler Volvo Iveco Navistar
Page 14 July 2017
Best-in-Class Operating Efficiency Inventory Turns
0
5
10
15
20
25
0
5
10
15
20
25
07 08 09 10 11 12 13 14 15 16
# Inventory Turns # Inventory Turns
PACCAR Volkswagen Daimler Volvo CNH Navistar
Page 15 July 2017
Best-in-Class Operating Efficiency SG&A % of Sales
0%
5%
10%
15%
20%
0%
5%
10%
15%
20%
07 08 09 10 11 12 13 14 15 16
PACCAR Volkswagen Daimler Volvo CNH Navistar
Page 16 July 2017
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 16*Trucks Net Income per Truck Adjusted Net Income Per Truck *
Units (000s) $/Truck
* 2016 Adjusted Net Income Per Truck was determined using Adjusted Net Income of $1,355 million, which excludes non-recurring European Commission charge of $833 million. See appendix for supplementary information on non-GAAP measures.
Page 17 July 2017
Annualized Shareholder Total Return % Fifteen Years, As of June 30, 2017
Deere
Volvo
Caterpillar
Eaton
Hino
Volkswagen
Toyota
Daimler
Ford
Navistar
S&P 500
-4 0 4 8 12 16
Page 18 July 2017
PACCAR Inc A+/A1 Credit Ratings
6/30/17 Cash & Securities $ 3,005 Manufacturing Assets 6,360 Financial Services Assets 12,688 Total Assets $ 22,053
Manufacturing Debt $ 0 Manufacturing Liabilities 4,598 Financial Services Liabilities 9,955 Shareholders' Equity 7,500 Total Liabilities & Equity $ 22,053
($ Millions)
Page 19 July 2017
PACCAR Overview – Q2 2017
Consolidated Sales & Revenues $4.7 Billion
Net Income $373 Million
PACCAR Financial Pre-Tax Profit $63 Million
PACCAR Parts Record Pre-Tax Profit $152 Million
Stockholders’ Equity $7.5 Billion
A1/A+ Credit Ratings
Regular Dividend Increased 25% in Last 5 Years
Page 20 July 2017
PACCAR Revenues and Profit
($ Millions) 2nd Quarter Six Months 2017 2016 2017 2016
Revenues $4,704 $4,413 $8,942 $8,713
Net Income (Loss) 373 481 683 (113) Diluted EPS 1.06 1.37 1.94 (0.32)
Adjusted Net Income (Non-GAAP) 372 720 Adjusted Diluted EPS 1.06 2.05
78 consecutive years of net profit
Dividends every year since 1941
Note: See appendix for supplementary information on non-GAAP financial measures
Page 21 July 2017
PACCAR Capital Allocation
• R&D and capex investments drive future growth
• Credit rating of A+/A1 reflects strategic nature of our financial services operations
• Long history of successful acquisitions; highly selective, strategic, clear path to value creation
• Quarterly plus special dividends • Strategic share repurchases
Capex $1.9
R&D $1.2
Dividend $3.2
Share Repurchase
$0.5 Finance Company
$1.0
Debt Repayment
$0.2
Uses of Cash Flow 2012 – 2016: $8 Billion
Capital Allocation Strategy
Page 22 July 2017
New Products and Technologies
Platooning HoloLens – Augmented Reality
2017 DAF CF & XF PACCAR Axles
Page 23 July 2017
PACCAR Investments
DAF Sales Office, Haddenham, U.K.
PACCAR Engine Factory, Columbus, Mississippi PACCAR Parts Distribution Center, Toronto, Canada
DAF, Westerlo, Belgium
Page 24 July 2017
Dividends Declared and Stock Repurchases
0
200
400
600
800
1,000
1,200
0
200
400
600
800
1,000
1,200
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
$ Millions $ Millions
Dividends Stock Repurchased
Page 25 July 2017
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 26 July 2017
0
50
100
150
200
250
300
350
400
450
500
550
0
50
100
150
200
250
300
350
400
450
500
550
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Engines (000s) Engines (000s)
Cumulative PACCAR MX Engines Produced
KW/PB MX-13 MX-11 DAF MX-13
Page 27 July 2017
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
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
$ Millions $ Millions
PACCAR Parts Revenue
8%
Page 28 July 2017
PACCAR Parts Distribution Centers and Dealers
PACCAR Distribution Centers KW, PB, DAF Dealers
Page 29 July 2017
PACCAR Parts Investments
Renton, WA Ponta Grossa, BR
Eindhoven, NL Lancaster, PA
Page 30 July 2017
PACCAR Global Dealer Network
Page 31 July 2017
DAF Brasil
Page 32 July 2017
Road to Autonomous Commercial Vehicles
• Anti Lock Braking
• Lane Departure Warning
• Object Detection
• Adaptive Cruise Control
Component Controls
1980-2014
• Collision Avoidance
• Lane Keeping Assist
• Predictive Cruise Control
System Integration
2015-2017
• Vehicle to Infrastructure Network
• Automatic Lane Change
• Automatic Routing
Automated Vehicle
2025+
Greater Vehicle Autonomy
• Improves Safety, Fuel Efficiency and Truck Utilization
• Increases Truck Content
• Increases Parts Demand
• Vehicle to Vehicle Network
• Driver Monitoring
Network Integration
2018-2024
Page 33 July 2017
Environmental Leadership
Ranked in Top 10% of Companies Reporting to 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 34 July 2017
$12.7 Billion in Assets
Pre-tax Profit $63 Million
Full Service Leasing
Dealer Floorplan Retail Financing
180,000 Vehicles Financed
PACCAR Financial Services – Q2 2017
Page 35 July 2017
PACCAR Financial Services 24 Countries on Four Continents
PACCAR Financial Regional Offices
Page 36 July 2017
PACCAR Financial Services Assets
2006 - $9.8 Billion 2Q17 - $12.7 Billion
U.S. & Canada
$6.2 Billion 49%
PacLease $2.2 Billion
18%
Europe $2.9 Billion
23% U.S. &
Canada $5.2 Billion
53%
Europe $2.2 Billion
22%
Australia & Mexico $0.9 Billion
9%
PacLease $1.5 Billion
16%
Australia & Mexico $1.4 Billion
10%
Page 37 July 2017
48,200 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
07 08 09 10 11 12 13 14 15 16
Assets € Billions
Assets € Billions
Page 38 July 2017
10
15
20
25
30
35
40
10
15
20
25
30
35
40
07 08 09 10 11 12 13 14 15 16
Trucks 000’s
Trucks 000’s
PACCAR Leasing
Page 39 July 2017
PACCAR Financial Services Delivers Strong Performance
0
1
2
3
4
5
6
7
8
0
1
2
3
4
5
6
7
8
90 92 94 96 98 00 02 04 06 08 10 12 14 16
% %
Low 30+ Days Past Due Assets and Pretax Profit
0
50
100
150
200
250
300
350
400
0
2
4
6
8
10
12
14
16
07 08 09 10 11 12 13 14 15 16
Assets $ Billions
Pretax Profit Avg Earnings Assets
Pre-tax Profit $ Millions
Page 40 July 2017
PACCAR Financial Services 6/30/17
Finance & Other Receivables $9,229 Equipment on Operating Leases 2,788 Other Assets 671 Total Financial Services Assets $12,688
Commercial Paper & Bank Loans $2,889 Term Notes 5,655 Deferred Taxes & Other Liabilities 1,411 Total Financial Services Liabilities 9,955 Equity 2,733 Total Liabilities & Equity $12,688
($ Millions)
Page 41 July 2017
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
PACCAR Competitive Advantages
Page 42 July 2017
Appendix Reconciliation of GAAP to Non-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 in 2016. 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 from the most directly comparable GAAP measures to adjusted net income (non-GAAP) and adjusted net income per diluted share (non-GAAP) are as follows:
Three Months Ended Six Months Ended
(in millions) June 30, 2016 June 30, 2016
Net Income (Loss) $ 481.3 $ (113.3)
Non-Recurring European Commission Charge (109.6) 833.0
Adjusted Net Income (Non-GAAP) $ 371.7 $ 348.0
Per Diluted Share:
Net Income (Loss) 1.37 $ (0.32)
Non-Recurring European Commission Charge (0.31) 2.37
Adjusted Net Income (Non-GAAP) 1.06 $ 2.05
(in millions)
Shares used in per diluted share calculations:
GAAP 351.6 351.1
Non-GAAP 351.6 351.8
