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Page 1: OUR SENIOR LEADERSHIP TEAM - WordPress.com...International Truck announced today that it has started production of its first International® ®WorkStar vocational trucks powered by
Page 2: OUR SENIOR LEADERSHIP TEAM - WordPress.com...International Truck announced today that it has started production of its first International® ®WorkStar vocational trucks powered by

OUR SENIOR LEADERSHIP TEAM

Troy Clarke

President and Chief

Executive Officer

Walter Borst

Executive Vice President

& Chief Financial Officer

Perio Lisboa

President, Operations

Bill Kozek

President, Truck &

Parts

Jeff Sass

Senior Vice President,

Sales and Marketing

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IT’S UPTIME

2015 • Highest quality products in decades

• Positive cash flow

• Improved market share

• Big product announcements

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Q2 2015 SUMMARY

Positive Momentum:

• Chargeouts are up 38% vs. last quarter; up 10% year-over-year

• Ends quarter with $784 million in manufacturing cash on positive

cash flow for the quarter

• Class 8 and medium duty industry outlooks for 2015 are strong

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Trucks that are designed to stay on the road

• Warranty spend is down year over year and quarter over quarter

Build defect-free trucks, delivered on the date promised

• All of our SCR products launched on-time or ahead of schedule

Fast service and repair at our dealerships

• Lower costs per repair

Real-time vehicle monitoring and support

• OnCommand Connection is the only open architecture telematics solution in the industry!

Our Uptime Focus

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AND THE

MOMENTUM

CONTINUES TO

BUILD

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International Truck and Quality Companies

have finalized a three-year supply

agreement for International® ProStar®,

LoneStar® Class 8 tractors powered by the

Cummins ISX-15. Following the 1,050

truck order announced last week,

International Truck announced it has

finalized the remaining 7,950 orders from

Quality Companies, Inc., a wholly owned

subsidiary of Celadon Group, Inc.

The 9,000 vehicle commitment consists

primarily of International® ProStar® and

LoneStar ® vehicles powered by Cummins®

ISX-15 engines, and will be spread across

the next three years.

Quality Companies is a very sophisticated

company that pays close attention to

tracking and understanding the cost of

ownership (including uptime and fuel

economy) for new truck purchases. They

have told us that our products outperform

anything else in their fleet. The 9,000 truck

order is a strong vote of confidence from

an industry leader.

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International Truck invited each of its Class 8 competitors to

participate in an open performance testing to compare fuel

economy and drivability of their new trucks. During the week

of August 31, at the Navistar Proving Grounds in New

Carlisle, Ind., International Truck’s Class 8 competitors will

have the opportunity to bring their two best performing

vehicles with regards to fuel economy and drivability.

So far, Freightliner and Volvo have declined to participate. We

are awaiting a response from Paccar.

The tests will include SAE Type III fuel economy testing and

aerodynamic coast down testing as well as ride vibration and

harshness, curb-to-curb cornering ability, forward visibility and

interior noise.

The heavy duty products we are building today are the

highest quality trucks we have built in decades, and are easily

the most fuel efficient trucks we have ever built. The fact that

Freightliner and Volvo have declined indicates they are

scared of us—they know how well the new ProStar performs

and realize that it’s a game they likely would not win.

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The ProStar® ES is part of an ecosystem

that combines superior aerodynamics

with an optimized drivetrain, customized

by our highly experienced Performance

Engineering Team and monitored through

our exclusive OnCommand™ Connection

system

THE RESULT?

Up to 13% fuel efficiency improvement vs. our fuel efficiency baseline.

Baseline is a 2010 ProStar with MaxxForce13 engine and 10-speed manual transmission

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Navistar will be first-to-market with the Eaton Procision™ line of dual-clutch transmissions for its International® DuraStar® medium-duty

trucks and IC Bus™ CE series school buses, available in late 2015. Based on Eaton's testing, the new 7-speed transmissions deliver a

significant fuel economy advantage compared to a similarly equipped vehicle with a torque converter automatic transmission. The Eaton

Procision transmission features a dual-clutch design and electronic shifting that uses grade, vehicle weight and throttle input to provide

optimal fuel efficiency and smooth, continuous delivery of torque.

Eaton Procision transmissions utilize a new synthetic transmission fluid that

provides component protection while reducing maintenance costs, as part of

150,000 mile or 4-year lube and filter change intervals. The internal sump filter

and electrical system do not require maintenance.

We are investing in all of our products, including medium duty. Our Open Integration

philosophy allows us to bring new innovations like the Eaton Procision transmission

to our customers before any other OEM. The addition of the Procision reinforces

the value proposition of the DuraStar as the most versatile medium duty trucks

on the road, offering new choices that the other OEMs don’t have.

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Navistar announced that it will launch a new

line of premium vocational trucks for the

severe service segment beginning in early-2016,

leveraging shared technology and intellectual

property from its venture with Caterpillar. Navistar

and Caterpillar have had a strong, collaborative

working relationship through a number of projects

and partnerships for many, many years. This next

phase provides Navistar with an exciting

opportunity to introduce new technologies and

product features into our new line of premium

vocational trucks that we'll launch in 2016.

We are not standing still. Our vocational

customers are very important to us, which is why

we are investing in a brand new truck to replace

PayStar to better serve the premium vocational

market. This addition to our full lineup of

commercial trucks will add even more

momentum to our recent successes.

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The International® ProStar® is available with Bendix® Wingman® Fusion™, an integration of advanced safety technologies,

offering exclusive new capabilities and unparalleled performance to North American fleets and drivers. Bendix Wingman

Fusion combines a proven suite of Bendix advanced safety technologies—radar, camera, the vehicle's brake system, and

SafetyDirect® by Bendix Commercial Vehicle Systems—into a comprehensive driver assistance system more powerful than

any other system or combination of safety technologies in the commercial vehicle industry today

We're committed to providing our customers with industry-leading technologies and bringing them to market quickly. Being the

first to introduce the Bendix Wingman Fusion to our heavy-duty line-up is an important step toward that goal.

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International Truck announced today that it has started production of its first International® WorkStar® vocational trucks powered by the

Cummins® ISB6.7 engine. Both the WorkStar and the International DuraStar® medium-duty truck are available with the ISB6.7 as an

engine option.

Production of the WorkStar with Cummins ISB6.7 is an important milestone in meeting the needs of vocational customers by providing a

comprehensive offering of proven components. The WorkStar with Cummins ISB6.7 gives customers a winning combination of

performance and strength. The International WorkStar with Cummins ISB6.7 is the right truck for many of our vocational customers.

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International® Truck announced the industry's first telematics credit, available through approved,

integrated telematics providers—effective immediately. The telematics hardware and a two-year

data plan from one of several providers will be standard and available at no cost to the customer

through this program. Hardware and data from the other telematics service provider partners will

be partially covered by this program. The credit bundle goes into effect on new orders placed

since July 1, 2015 in the U.S. and Canada, and will be available to customers buying directly

through the International Truck dealer organization.

OnCommand™ Connection and the telematics bundle credit is an important part of International

Truck's commitment to Uptime. We want every customer in the industry to improve their uptime,

so we took the initiative to offer a technology bundle with a portfolio of telematics providers our

customers already know and trust.

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…and we can demonstrate uptime

improvements for these customers. It’s one of

the most important new developments in

trucking…and Heavy Duty Trucking magazine

agrees—it named OnCommand Connection one

of its top 20 products of 2014.

OnCommand™ Connection

currently supports more than

130,000 vehicles

OnCommand Connection will enables us to increase our customers’ vehicle uptime,

supports quicker repairs and helps to control maintenance and repair costs.

After six months of using On Command Connection, one customer experienced a

28% decrease in down days and 31% decrease in repair costs

is now STANDARD on all new International Trucks!

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Navistar has opened the Navistar Proving Grounds in New Carlisle,

Indiana where the company will test its entire portfolio of

products: Class 5-8 commercial trucks, school buses and military

vehicles. Recently purchased from Robert Bosch LLC, the 668-acre

site includes a three-mile paved and banked oval with several

additional testing capabilities.

Specialized testing such as vehicle noise and handling, center-of-

gravity, rollover and roof crush testing, grade-ability up to 60

percent, traction control, powertrain durability among others

Located about 90 miles from Navistar headquarters in Lisle, Ill., the

close proximity of Navistar Proving Grounds in New Carlisle, Ind.

will complement the company's validation center in Melrose Park,

Ill., driving efficiencies and allowing test capabilities to be managed

in-house by Navistar.

Uptime is not just an ad campaign—it is truly a commitment

by the company to keep getting better every day.

The new Navistar Proving Grounds will play an

important role in our mission to deliver industry-leading

uptime for our customers. Beyond testing, we will also

use the site as a customer center to showcase new

products and give customers an opportunity to

experience our vehicles firsthand.

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The company's financial condition and results continue to improve steadily, and we have begun to generate positive

cash flow. We're investing in new products and advancing on our Uptime strategy in the market, driven by our focus on

connected vehicles. The term loan renewal will provide us additional flexibility to pursue these initiatives. This also

demonstrates that the financial community believes in our strategy and is optimistic about our future.

Navistar has the resources to invest in future products and deliver best in class solutions for our customers. Our

financial position continues to improve, and the investment community believes in where we are headed.

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DON’T JUST

TAKE OUR

WORD FOR IT…

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“THEY TOLD US WE’D SEE A

HUGE GAIN IN FUEL ECONOMY,

AND THEY WERE RIGHT.”

—BLAINE KELLY, FLEET MANAGER

Bulk Carriers just purchased 15

brand new ProStars with N13

engines after fleet manager Blaine

Kelly, son of owner Jack Kelly, met

with a pack of Navistar engineers.

“Right then and there we made the

deal,” Blaine says. Since then, he’s

been stunned by the leap in

performance. “They told us we’d

see a huge gain in fuel economy,

and they were right. It’s three-

quarters of a mile better [per gallon].

I don’t care who you are; that’s

where you make your money at the

end of the day.”

http://www.internationaltrucks.com/trucks/experience/prostar_bulk_carriers

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"We've run our DuraStar with the 9-liter (with SCR) for around

40,000 miles during the last two months," said Robbie Easley,

owner, Easley Trucking. "We haul mail and the 9-liter has

performed well on the steep hills our trucks climb daily. This truck

runs between Phoenix and Yuma, Arizona, one of the hottest environments you can find, and it hasn't missed a beat."

Robbie Easley Owner, Easley Trucking

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“The versatility of the DuraStar

is perfect for us. essentially, it

functions as two vehicles in one.”

Greg Raver, Vice President of Fleet

Operations, Miller Pipeline

“It doesn’t matter whether it’s hilly terrain in the Southeast or the

flatlands in the Midwest. The feedback that I’ve gotten from our drivers

has been very positive in terms of comfort, and how they handle

different conditions. With the increased power and torque, our drivers

are able to get from job site to job site more quickly— and that adds to

our bottom line.” –Greg Raver, Miller Pipeline

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“Our trucks never shut off. From the

time the driver starts in the morning

until the time he’s done at night,

they’re running. We do get decent

fuel economy for what we’re doing,

a little better than the Macks.”

-Jim Hawkins

Owner, J Hawk Water Service

A CONSTRUCTION COMPANY TURNS TO INTERNATIONAL FOR

TOUGHER TRUCKS AND SOLID SERVICE

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2015 & BEYOND

• Best in class quality

and uptime

• Best in class fuel

economy

• Continued technology

leadership

• Continued design and

innovation leadership

LOOKING INTO

THE FUTURE

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