Navistar International 8K 1st Quarter 2010 Earnings Presentation | NAV 10 Mar 10

NYSE: NAV

1st Quarter 2010 Earnings Presentation

March 10, 2010

Exhibit 99.1

NYSE: NAV

Safe Harbor

Statement

Information provided and statements contained in this presentation that are not purely historical are

forward-looking statements within the meaning of Section

27A of the Securities Act of 1933, as

amended, Section

21E of the Securities Exchange Act of 1934, as amended, and the Private Securities

Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this

presentation and the Company assumes no obligation to update the

information included in this

presentation. Such forward-looking statements include information concerning our possible or assumed

future results of operations, including descriptions of our business strategy. These statements often

include words such as “believe,”

“expect,”

“anticipate,”

“intend,”

“plan,”

“estimate,”

or similar

expressions. These statements are not guarantees of performance or results and they involve risks,

uncertainties, and assumptions. For a further description of these factors, see Item

1A, Risk Factors,

included within our Form 10-K for the year ended October

31, 2009, which was filed on

December 21, 2009. Although we believe that these forward-looking statements are based on

reasonable assumptions, there are many factors that could affect

our actual financial results or results

of operations and could cause actual results to differ materially from those in the forward-looking

statements. All future written and oral forward-looking statements by us or persons acting on our behalf

are expressly qualified in their entirety by the cautionary statements contained or referred to above.

Except for our ongoing obligations to disclose material information as required by the federal securities

laws, we do not have any obligations or intention to release publicly any revisions to any forward-

looking statements to reflect events or circumstances in the future or to reflect the occurrence of

unanticipated events.

NYSE: NAV

Other Cautionary Notes

•

The financial information herein contains audited and unaudited

information and has been prepared by management in good faith

and based on data currently available to the Company.

•

Certain Non-GAAP measures are used in this presentation to assist

the reader in understanding our core manufacturing business.

believe this information is useful and relevant to assess and

measure the performance of our core manufacturing business as it

illustrates manufacturing performance without regard to selected

historical legacy costs (i.e. pension and other postretirement costs).

It also excludes financial services and other expenses that may not

be related to the core manufacturing business. Management often

uses this information to assess and measure the performance of our

operating segments.

A reconciliation to the most appropriate GAAP

number is included in the appendix of this presentation.

NYSE: NAV

•

Focus is on reducing impact of cyclicality

–

Non-traditional/expansion markets

–

Grow parts

•

Improve cost structure while developing synergistic

niche businesses with richer margins

•

Improve conversion rate of operating income into

net income

•

Controlling our Destiny

Strategy: Leveraging What We Have and

What Others Have Built

NYSE: NAV

What We Said at Analyst Day….

Past Objective

Status

$15 billion revenue at

peak

2008 at low industry

•

$20+ billion

$1.6 billion segment

profit at peak industry

Ready –

when market

returns

•

Global impacts

Profitable at bottom

(while investing)

2008/2009/2010 while

we invest in the future

Cash

Best results in N.A.

industry

•

Improve core margins

while growing global

business

Postretirement

Contained

•

Permanent fix

Capital structure

Parent -

Finalized

Financial Services -

TBD

•

Where to invest excess

cash

NYSE: NAV

What We Said at Analyst Day….

2010 Outlook -

$1.75 to $2.25 EPS

2010 vs. 2009

Note

Industry U.S. &

Canada

+5% to 10%

half flat/3

qtr down/4

qtr

Diesel

Ford concluded

12/31/2009

3-4 months 2010 engine

transition

Military revenue

Down $700M to $900M

$500M Truck $200M Parts

Interest expense

GAAP interest expense up

~$60M

Cash interest expense down

$6M in FY2010

Truck margins

•

Same as 2009 in 1

half

•

Up in 2

half

•

Same as 2009 in 1

half

•

Up in 2

half

Global/niche

markets

Up in 2

half

Mahindra launch 1

half

NC2 –

2011+

R&D

Similar

Other

2010 launch costs $50M

Mostly 1

half

NYSE: NAV

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1Q09

1Q10

5,000

10,000

15,000

20,000

25,000

1Q09

1Q10

Traditional

Expansionary

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

1Q09

1Q10

All Other

U.S. and Canada Ford

2010 1Q Information

14,800

$2,809

Key Take Away:

•

Q1 seasonally lower operating days

•

Q1 2010 military revenue $350 million

compared to $960 million in Q1 2009

•

Ford diesel production ceased 12/31/09

15,300

4,900

3,900

12,600

24,700

38,300

49,100

50,900

73,800

19,700

19,200*

$2,970

*Note: Expansionary excludes 900 units from BDT (F650 & F750) consolidation as well as 600 units from Monaco towables.

NYSE: NAV

2010 1Q Information:

Profitable at all points in the cycle

Key Take Away:

•

Cost of production reduced due to Chatham,

Conway, and material savings

•

Taxes $15 million higher than Q109

Note: This slide contains both GAAP and non-GAAP information, please see the Reg G in appendix for detailed reconciliation.

(A)

1Q09 information excludes a benefit of $196M due to the Ford Settlement.

(B)

1Q10 includes a benefit of $17 million due to the Ford settlement and also a charge of $12 million related to settlement of various

tax contingencies related to Brazil; excludes net income attributable to non-controlling interests.

$211

$168

$50

$100

$150

$200

$250

1Q09

1Q10

$37

$25

$10

$15

$20

$25

$30

$35

$40

1Q09

1Q10

$0.67

$0.23

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

1Q09

1Q10

(A)

(B)

NYSE: NAV

What We Said at Analyst Day…

•

Market Share expected 2010

–

Bus up; Severe Service up; Medium up

–

Heavy 25% average for year

–

Transition in 1

half of 2010

–

Industry move to 13L

•

2010 Emissions

–

Ready with improvements

–

15L launch pulled up

•

Military $2 billion ongoing

–

Opportunity for more in 2010

•

Other Growth

–

Mixers

–

Class 4/5

–

Global

•

Controlling our Destiny

–

Pure Power Technologies

•

Balance Sheet Improvements

NYSE: NAV

Medium

Truck

Great Products –

Market Share

60% Market Share

1Q10

Severe

Service

Truck*

Heavy

Truck

FY07

60%

FY08

55%

FY09

61%

1Q10

60%

*Excludes U.S. Military shipments. See market share slide in appendix for shipments with and without military shipments.

FY07

36%

FY08

36%

FY09

35%

1Q10

33%

FY07

25%

FY08

27%

FY09

34%

1Q10

34%

FY07

15%

FY08

19%

FY09

25%

1Q10

23%

Class 8**

School

Bus

(U.S. & Canada)

**Market share based on brand

33% Market Share

1Q10

34% Market Share

1Q10

23% Market Share

1Q10

26% Market Share

1Q10

School Bus & Combined Class 6-8 Market Share –

1Q FY08: ; 1Q FY09: ; 1Q FY10:

NYSE: NAV

2010 Heavy Strategy

2010 Goal –

Maintain 25%

Heavy Market Share

2010 Strategy

–

Utilize transition inventory

–

Convert customers to 13L

–

Drive customer –

pre/post buy

27%

23%

21%

22%

23%

24%

25%

26%

27%

28%

1st Half 2010

2nd Half 2010

U.S. & Canada Heavy Market Share

15%

19%

25%

10%

15%

20%

25%

30%

FY07

FY08

FY09

Market Share

Class 8 Heavy Truck

2009 Transition

2010

Big Bore

11L-15L

11L/13L

46%

15L

54%

<425 hp

12%

425

-455 hp

64%

475

-550 hp

24%

MaxxForce

11L/13L

330 hp-475 hp @ 1900

rpm

1250

-1700 hp lb.

–ft.

@ 1000 rpm

Configurations

NYSE: NAV

Advanced EGR Gives Us a

Competitive Advantage

60% Market Share

1Q10

School

Bus

33% Market Share

1Q10

34% Market Share

1Q10

Severe

Service

Truck*

Heavy

Truck**

23% Market share

1Q10

Medium

Truck

*Excludes U.S. Military deliveries

**Market share based on brand

30%

36%

51%

10%

20%

30%

40%

50%

60%

FY 2008

FY 2009

4 mos. ended

February 2010

U.S. & Canada School Bus and Class 6-8

Order Receipt Share

2009 Industry:

Heavy

Day

Cab

–

16%

Heavy

Sleeper

–

30%

NYSE: NAV

Summary –

2010 Emission Strategy Status

2010 emission strategy on/ahead of schedule

•

All engines will be between 0.4 and 0.5 NOx

•

Engine durability testing is on track and plan to over-test and stress many parts of

the system

•

In most cases, vehicles will have equal to or better fuel economy than 2009

vehicles

•

Base engine will have less heat than 2009 engines

•

ProStar

vehicle weight will be reduced by over 700 lbs

•

100 test vehicles in operation today

•

School bus –

2010 diesels in market –

performing

NYSE: NAV

2010 vs. 2007 Total Vehicle Specs

EGR -

Navistar

Engine

Truck

Total Vehicle

Weight

Better

Down

Performance

Better

Life

Same

Better

Fuel economy

Better

Neutral

Better

After treatment

No change

UREA -

SCR

Total Vehicle

UREA usage

???

Urea cost

Smoke test underway in the wind tunnel.

Photos Credit: Lawrence Livermore National Laboratory

NYSE: NAV

Navistar Defense 2010 Sales Mix

Goal: $2 Billion Sustainable

Prior outlook provided on January 19th

Updated outlook

~ $2.0 -

$2.2 Billion Revenue

Parts

Capability

Insertion

Vehicles

2010

U.S. and FMS

Vehicles

Direct Foreign

Vehicles

Services

Parts

Firm Orders

~ $1 Billion Revenue

Opportunity (strong confidence)

~ $1.0 -

$1.2 Billion Revenue

~ $2.4 -

$2.6 Billion Revenue with potential upside

Parts

Capability

Insertion

Vehicles

2010

U.S. and FMS

Vehicles

Direct Foreign

Vehicles

Services

Parts

Firm Orders

~ $1.7 Billion Revenue

Opportunity (strong confidence)

~ $0.7 to $0.9 Billion Revenue

NYSE: NAV

DXM Retrofit Opportunities

Dash production with

DXM Suspension

Fielded Dash

DXM upgrade

via rolling chassis

BDAR or value

based decision for

all

variants

NYSE: NAV

MRAPs to Support Allies

Defense Secretary Gates Pledges MRAPs to International Security

Assistance Force Partner Nations

Navistar Defense is leading

“Category I”

MRAP provider

•6,444 MRAP units fielded

•Supporting ISAF builds Navistar’s

global network

NYSE: NAV

Recent Awards and Opportunities

MaxxPro

Dash with DXM

Independent Suspension

•

$752 million for 1,050 units

•

Deliveries to begin in April

•

Completed by the end of summer 2010

DXM Suspension provided by

Hendrickson and AxleTech

•

Added mobility

•

Ease of integration for in-theater retrofits

-1,222 MaxxPro

Dash units fielded

5,222 MaxxPro

units fielded

8,100

International

7000 Series

units fielded with Afghan National

Army/Afghan National Police

NYSE: NAV

Total U.S. Mixer Market

Business and Market Overview

Great Products

Concrete Mixer Industry

Body/Chassis/Engine Integration

•

Cost reduction

•

Functionality

•

EGR benefits

•

Eliminate waste

•

Portfolio expansion

•

Market impacted by construction collapse

•

2009 historic low

•

Anticipate gradual recovery in 2010 and beyond

Expanded North America Distribution

•

30 Navistar dealers with Continental contract

•

50% more than top competitor

•

One stop sales, parts, service for body and chassis

FY 2010

fcst

~3,000

•

Market –

80% rear discharge

•

Market share target >30%

•

Global expansion –

Latin America, India, Mexico

NYSE: NAV

Next Up –

Truck

Class 4/5

Enablers to Future Integrated Products

DuraStar

Cab

Day, Extended & Crew

CF Chassis

Drop Rails

MaxxForce

Engine

Leveraged Our Assets

10%

20%

30%

40%

50%

60%

70%

80%

Industry Sales: 4,5 -

6,7 percent mix of trucks

GVW 4,5

GVW 6,7

•

Market has shifted from 6/7 to 4/5

•

Prior to exiting, GM had 20% market share with a

focus on commercial

and retail

•

Only product in this class with customer friendly

EGR diesel engines

•

20% of commercial customers buy 76% of the

industry volume, and we already sell to most of

these customers

•

Opportunity for significant advantage in complex

body applications (i.e. utility and ambulance)

NYSE: NAV

Next Up –

Bus

Type A School

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

School Bus Results

8 Body Companies

4 Chassis Suppliers

3 Integrated Mfrs

14 Body Companies

4 Chassis Suppliers

1+ Integrated Mfrs

Commercial Bus Vision

2006

2016

Cutaway Commercial

Market size: 10K

Market size: 8K

NYSE: NAV

Global Demand

2008 Global Market

U.S./Canada Market = 359,000

Rest of World

= 1,858,000

Sources: Compilation of JD Power 2008, World

Truck Manufacturers Report, Econometrix

NYSE: NAV

Tailored to the Region

Faster Development

Higher Quality

Lower Costs

Differentiation

Leveraging Our Assets: Common Platforms

NYSE: NAV

MNAL Launch

•

Full range of benchmark cabover products

•

Proprietary dump bodies and buses

•

Proprietary engines

•

Cost structure tailored to local market

NYSE: NAV

Next Up –

Global Truck

Global

United States & Canada

Our International

ProStar

made

its

industry debut February 10 at the

recently inaugurated service, parts and

sales facilities of Tracto

Camiones

USA in Lima, Peru.

15%

19%

25%

10%

15%

20%

25%

30%

FY07

FY08

FY09

Market Share

Class 8 Heavy Truck

NYSE: NAV

Leveraging our Assets

•

Full range of benchmark cabover products

•

Proprietary dump bodies and buses

•

Proprietary engines

•

Cost structure tailored to local market

•

$110 to $130 million total revenue

projected for 2010

Note: Mahindra FY –

April to March

Mahindra/Navistar J.V. is a 51%/49% joint venture

150,000

170,000

190,000

210,000

230,000

250,000

270,000

290,000

310,000

330,000

350,000

FY 2009

Actual

FY 2010

Estimate

FY 2011

Estimate

FY 2012

Estimate

Overall commercial vehicle industry

(in units)

•

Product technology

•

Manufacturing

•

International brand equity

•

Selling expertise/

marketing

•

Great global brand

•

Strong global distribution

•

Extensive customer

relationships

•

Complementary technical

skills

•

Productions expected in early 2011 for North

American strategic alliance

strategic alliance

with projected

revenues of $200 to $300 million at full production

•

50/50 joint venture for commercial trucks outside of

North America

$300 to $400 million total JV revenue project for

2011 on volume of 3,000 to 4,000 units

NYSE: NAV

1Q 2010 Financial Summary

•

Manufacturing Cash

•

Capital Structure

•

Below the Line Items

•

Summary

NYSE: NAV

1Q 2010 Manufacturing Cash

Note: This slide contains non-GAAP information, please see the Reg

G in appendix for detailed reconciliation.

Memo:

•Intercompany

receivable

from

NFC

used

for

bridge

until

strategic

deal

with

completed

•Lower engine production/Ford

•Lower

truck

production

–

Garland

Bus

due

shutdown

•Transition engine bank

October 31, 2010 ending manufacturing cash and marketable securities

$1,152

EBITDA*

$124

Change in net working capital

($486)

Other cash flow from operations

$28

Cash flow from operations

($334)

Capital / investment spending

($84)

Financing cash flow (including exchange rate effects)

($66)

Net change in manufacturing cash

($484)

January 31, 2010 manufacturing cash and marketable securities

$668

Reversal of cash attributable to non-controlling interest

($8)

January 31, 2010 ending manufacturing cash and marketable securities attributable to controlling interest

$660

*Includes depreciation of equipment leased to others

NYSE: NAV

What We Said at Analyst Day….

Capital Structure –

Refinance to Create Value

•

Refinanced $1.5 billion -

long-term structure with

staggered maturities

–

5 year/12 year

–

No dilution until >$60/share

•

Manufacturing debt is cost

effective: 6.34% annual cash

interest

NIC –

Status

NFC –

Status

•

2009 systematic refinancing

•

Three-year bank facility in place

•

Position to fund expansion

NIC –

What’s Next

NFC –

What’s Next

•

Focus on strategy execution

•

2010 –

Challenge is fleet financing

NYSE: NAV

Strategic Alliance with GE Capital

Leveraging what we have and what others have built

•

Wholesale vehicle and

parts financing, and

factored fleets in the U.S.

•

Wholesale vehicle and

parts financing, and retail

financing in Mexico

Financing the sale of Navistar products

New Retail Program in the U.S.

•Aligns with stronger partner

•Strengthens product offerings:

–

Enhanced ability to support large

fleets

–

Leasing

–

Syndications

•

Reduces leverage

•

Retail financing in the U.S.

•

Wholesale vehicle and

parts financing, and retail

financing in Canada

NYSE: NAV

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010 Q1

Future

NFC Debt

NYSE: NAV

Postretirement Pension & Health Care

•

Closed plan to new entrants in 2002

Majority of new entrants closed in 1996

Annual service cost is decreasing

•

2009 higher cost caused by 2008 market decline

Revised investment strategy/investment advisor

FY2009 return 15.8% for pension plan and 15.6% for OPEB

Expect cost to improve/neutral

•

Aggressive cost control, without service cuts (health care)

Cost contained

•

Next steps

Contained

Note: For further information, please see FAQ in the appendix.

NYSE: NAV

2010 Outlook –

$1.75 to $2.25 EPS

* Represents Corporate and Eliminations Interest Expense as shown in Footnote 14, Segment Reporting, of 2010 First Quarter 10Q.

2010 vs. 2009

2nd

Quarter

Full Year Note

Industry –

U.S.

& Canada

Flat to slightly up

Down

•

half flat

•

qtr / 3

qtr down

•

qtr up

Diesel

Ford concluded 12/31/2009

2010 product

launches

•

half 2010 engine transition

•

2010 Product Launches

Military

revenue

$2.4B to $2.6B with upside

Clarification of

capability insertion

program –

timing

Capability insertion program timing

could drive revenues higher

Mfg. interest

expense

GAAP interest expense up

~ $60M

Similar to Q1 2010

Timing of cash interest expense

down $6M in FY 2010

Truck margins

•

Same as 2009 in 1

half

•

Up in 2

half

Same as 2009

•

Same as 2009 in 1

half

•

Up in 2

half

Global/niche

markets

Up in 2

half

Product launch

Investing in future growth

R&D

Similar

Incr. launch spend

Similar to 2009 spend

Other

2010 launch costs $50M

Incr. launch spend

Mostly 1

half

NYSE: NAV

2010 Outlook & Beyond

•

Strong results in a down economy

–

Profitable 1

quarter

–

Product cost savings

–

Controlled discretionary spending

–

Capital structure NFC

•

Military opportunities –

finalize timing

•

Investing in future growth –

global strategy

•

Positioned well for economic recovery

NYSE: NAV

Appendix

NYSE: NAV

Manufacturing Cash Flow

($ in millions)

Note: This slide contains non-GAAP information, please see the Reg

G in appendix for detailed reconciliation

Beginning Mfg. Cash

Balance

Fiscal 2007

Fiscal 2008

Fiscal 2009

Q1 2010

October 31, 2006

$1,214

October 31, 2007

$722

October 31, 2008

$777

October 31, 2009

$1,152

Approximate Cash Flows:

From Operations

($231)

$414

$514

($334)

Dividends from NFC

$400

$15

From Investing / (Cap Ex)

($200)

($220)

($284)

($84)

From Financing / (Debt Pay Down)

($480)

($133)

$56

($59)

Exchange Rate Effect

$19

($21)

($7)

Net Cash Flow

($492)

$55

$295

($484)

Blue Diamond Consolidation

$80

Ending Mfg. Cash

Balance:

October 31, 2007

$722

October 31, 2008

$777

October 31, 2009

$1,152

January 31, 2010

$668

Cash = Cash, Cash Equivalents & Marketable Securities

Includes cash attributable to non-controlling interest

NYSE: NAV

Impact of Ford Settlement on 2009

Business Impact of Settlement

•

Loss of U.S. automotive customer

•

Less intensive capital/product requirements

•

Restructured business

•

Impact of increased equity stake in BDT & BDP

Note: For additional

information, please see

footnote 2, Ford settlement

and related charges, of our

10Q filed on March 9, 2010.

Settlement and Related Restructuring - 2009 PBT Impact

(in millions)

Full Year

Cash

200

Warranty

Restructuring charges

(58)

(4)

(59)

Other related income (expense)

(27)

(35)

(12)

(56)

190

(32)

(16)

160

Actual

NYSE: NAV

Market Share –

U.S. & Canada School Bus and Class 6-8

Navistar

1st Q

2nd Q

3rd Q

4th Q

Full Year

1st Q

2nd Q

3rd Q

4th Q

Full Year

1st Q

2nd Q

3rd Q

4th Q

Jan. YTD

Bus (School)

57%

48%

58%

55%

56%

60%

61%

66%

61%

60%

Medium (Class 6-7)

34%

35%

39%

35%

36%

30%

39%

33%

39%

35%

33%

Heavy (LH & RH)

16%

15%

19%

25%

19%

24%

23%

29%

24%

25%

23%

Severe Service

28%

26%

29%

27%

32%

36%

33%

34%

Combined Class 8

20%

19%

21%

26%

22%

26%

28%

30%

27%

28%

26%

Combined Market Share

27%

28%

32%

29%

30%

35%

36%

34%

31%

2010

Market Share - U.S. & Canada School Bus and Class 6-8

2008

2009

NYSE: NAV

Truck Chargeouts

Note: Information shown below is based on Navistar’s fiscal year

Fiscal year 2008

1Q08

2Q08

3Q08

4Q08

Full Year 2008

BUS

3,100

3,300

2,700

4,400

13,500

MEDIUM

3,700

6,300

5,800

4,500

20,300

HEAVY

2,600

3,900

4,500

7,800

18,800

SEVERE

2,400

3,400

3,300

3,700

12,800

TOTAL

11,800

16,900

16,300

20,400

65,400

MILITARY (U.S. & Foreign)

1,600

2,200

2,300

2,600

8,700

EXPANSIONARY

5,900

8,100

8,400

5,700

28,100

WORLD WIDE TRUCK

19,300

27,200

27,000

28,700

102,200

Fiscal year 2009

1Q09

2Q09

3Q09

4Q09

Full Year 2009

BUS

2,700

3,100

3,500

4,500

13,800

MEDIUM

3,200

3,400

2,600

3,800

13,000

HEAVY

6,100

3,200

4,500

5,300

19,100

SEVERE

2,800

2,700

2,800

2,700

11,000

TOTAL

14,800

12,400

13,400

16,300

56,900

MILITARY (U.S. & Foreign)

2,500

2,100

1,200

2,000

7,800

EXPANSIONARY

2,400

1,900

2,400

5,400

12,100

WORLD WIDE TRUCK

19,700

16,400

17,000

23,700

76,800

Fiscal year 2010

1Q10

2Q10

3Q10

4Q10

Full Year 2010

BUS

3,100

MEDIUM

3,900

HEAVY

5,200

SEVERE

3,100

TOTAL

15,300

MILITARY (U.S. & Foreign)

900

EXPANSIONARY

4,500

WORLD WIDE TRUCK

20,700

NYSE: NAV

World Wide Engine Shipments

Navistar

1st Q

2nd Q

3rd Q

4th Q

Full Year

Ford

47,000

55,300

25,200

24,500

152,000

Other OEM sales

25,900

31,500

34,100

37,100

128,600

Intercompany sales

12,900

15,700

20,000

16,300

64,900

Total Shipments

85,800

102,500

79,300

77,900

345,500

Navistar

1st Q

2nd Q

3rd Q

4th Q

Full Year

Ford

14,100

29,000

26,200

44,300

113,600

Other OEM sales

22,500

22,200

24,600

29,100

98,400

Intercompany sales

14,300

12,700

12,800

17,500

57,300

Total Shipments

50,900

63,900

63,600

90,900

269,300

Navistar

1st Q

2nd Q

3rd Q

4th Q

Jan. YTD

OEM sales - South America

31,000

Ford sales - U.S. and Canada

24,700

Other OEM sales

1,700

Intercompany sales

16,400

Total Shipments

73,800

2010

2008

2009

NYSE: NAV

Order Receipts –

U.S. & Canada

Percentage

2010

2009

Change

1,600

3,200

(1,600)

(50)

7,100

2,800

4,300

154

Class 8 heavy trucks

6,200

5,400

800

Class 8 severe service trucks

3,400

2,400

1,000

18,300

13,800

4,500

9,600

7,800

1,800

Three Months Ended

January 31,

Order Receipts: U.S. & Canada (Units)

Total "Traditional" Markets

Combined Class 8 (Heavy and Severe Service)

"Traditional" Markets

School buses

Class 6 and 7 medium trucks

NYSE: NAV

NFC Liquidity Remains Strong

Retail Notes

Bank Facility

•

NFC had total available undrawn committed funding of more than $500M at 01/31/2010

NFC refinanced its bank revolver in December

Since November, NFC has sold $600M of wholesale floor plan notes

to support dealer inventory

funding

On 02/15/10 we refinanced with a new TALF eligible transaction in the amount of $250M

•

NFC profitability rebounded in 2009 and looks to hold steady in 2010

–

Margins improving

–

Portfolio quality stabilizing for several quarters

–

Interest rates stabilized

•

$500M revolving warehouse (TRIP)

–

Acquired notes sold into TRIP

–

TRIP warehouses, then securitizes

via bank conduits

•

TRIP terms

–

Matures June 2010

On-balance sheet

•

$815M facility

–

Funding for retail notes,

wholesale notes, retail

accounts, and dealer open

accounts

–

Matures December 2012

On-balance sheet

•

Situation as of 01/31/2010

–

~$1.1B funding facility

(NFSC)

–

Available $300M

•

NFSC terms

–

Bank conduit portion (VFC)

renewed August 2009

–

Public portions mature:

February 2010 and October

2012

Off-balance sheet

NYSE: NAV

International Dealer Stock Inventory (Units)

U.S. and Canada Dealer Stock Inventory

*Includes U.S. and Canada Class 4-8 and school bus inventory, but does not include Workhorse Custom Chassis inventory.

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

NYSE: NAV

Frequently Asked Questions

Q1:

What should we assume for capital expenditures in 2010?

For

2010,

excluding

our

NFC

and

Dealcor

acquisition

vehicles

for

leasing,

expect

our

capital

expenditures

below

our

normal

$250

million

$350

million

range.

continue

fund

our

strategic

programs.

Q2:

What is in your Dealcor

debt?

Dealcor

debt is comprised of wholesale (floor plan) financing and also retail financing on lease and

rental fleets for company owned dealers.

Q3:

How many Dealcor

dealers did you have as of January 31, 2010?

our

281

primary

NAFTA

dealers,

have

ownership

interest

DealCor

dealers

January

31,

2010.

expect

further

reduce

our

DealCor

dealers

before

October

31,

2010.

Q4:

What percentage of truck purchases do you fund?

We consistently fund about 95% of floor plan inventory for our dealers in the U.S. and approximately

9-12% of retail purchases.

Q5:

When is the next refinancing due at NFC?

Our TRIP facility, which we use as a warehouse for our retail notes, is due for renewal in June 2010.

We are still working through our plans relative to TRIP but at present do not expect to need to renew

this type of facility.

NYSE: NAV

Frequently Asked Questions

Q6:

Are there any requirements for NFC leverage?

NFC is compliant with our revolver leverage covenant of 6 to 1. This ratio calculation excludes qualified

retail and lease securitization debt.

Q7:

How do you fund your wholesale business?

We primarily finance our wholesale portfolio in traditional private or public securitizations, and through

our bank facility.

Q8:

How are your dealers doing?

We think our dealers, which have always been one of our strengths, are well positioned. We

traditionally have not had any significant dealer losses and expect that trend to continue in the future.

Q9:

What kind of rates do you charge your dealers and customers?

Generally, our rates vary (those with higher credit risk have always had to pay higher interest rates)

and are usually in line with the market.

Q10:

How is your NFC portfolio performing?

The portfolio is performing as we would expect.

Repossessions, past due accounts and losses peaked

in 2008 and have continued to gradually show improvement, consistent with prior cycles.

NYSE: NAV

Frequently Asked Questions

Q11:

What is your total amount of capacity at NFC?

Total availability in our funding facilities is more than $500 million as of January 31, 2010.

Q12:

How does your NFC derivative expense compare to last year?

Our derivative expense for Q1 2010 was $4 million, which compares favorably to our derivative

expense of $22 million for the three months ended January 31, 2009.

Q13:

How

your

repossession

percentages

compare

the

overall

size

your

portfolios?

Repossessions

percent

retail

balances

were

approximately

3.8%

for

2010.

Q14:

What is the current JLTV status?

Navistar and BAE completed the Critical Design Review (CDR) in November 2009. The CDR was

completed as part of the 27-month JLTV Technology Development (TD) contract received in October

2008.

The

CDR

marks

the

completion

the

design

process

and

the

start

vehicle

integration,

assembly, test and checkout (IAT&C) activities to deliver test vehicles to the government by May 2010.

Australia and India have also joined the program and interest has been expressed by Canada, Israel

and Britain.

NYSE: NAV

Frequently Asked Questions

Q15:

What changes have occurred in Defense spending due to the increase in troops heading to

Afghanistan?

According to a Pentagon reprogramming document signed on December 1, the Defense Department is

shifting $2.7 billion from the Mine Resistant Ambush Protected vehicle fund. Approximately $1.8 billion

will go to the MRAP account for government furnished equipment, engineering change proposals, and

initial logistics support for operating forces in Afghanistan.

Q16:

Why did Navistar select the DXM independent suspension over other systems?

Navistar conducted an extensive industry study to determine which product performs well and can be

easily

retrofitted

onto

the

MaxxPro

vehicle

design.

The

DXM

no-compromises

solution

that

can

also

integrated

into

MaxxPro

vehicles

currently

theater.

Q17:

When will MXT Tactical Support Vehicles (Husky) arrive in theater?

Vehicles for the U.K. are currently being deployed to Afghanistan.

Q18:

Will Navistar submit a proposal for the Ground Combat Vehicles program?

We are currently evaluating the government’s request for proposals to determine the potential

opportunities for Navistar.

NYSE: NAV

Frequently Asked Questions

Q19:

What are the 2010 emissions requirements?

The rules allow manufacturers to go to 0.5 NOx if they clean up the environment earlier with advanced

technology; manufacturers need to be at 0.2 NOx if they choose not to introduce advanced

technologies earlier.

Q20:

How much net operating losses remains, and why is there still a valuation allowance against

deferred tax assets?

The Company has approximately $288 million of U.S. federal net operating losses available as of

October 31, 2009 to offset future taxable income. Applying a federal tax rate of 35%, these losses

have an undiscounted cash value of $101 million. In addition, the value of our state and foreign NOLs

are $82 million and $102 million, respectively, for a total value of tax-effected, undiscounted cash of

$285 million.

A substantial portion of these NOL assets are subject to a valuation allowance. In addition to the

deferred tax assets attributable to the NOLs, we have other deferred tax assets arising from

temporary book-tax differences subject to a valuation allowance of $1.7 billion, for a total balance of

deferred tax assets subject to a valuation allowance of $2 billion. Under U.S. GAAP rules, when the

Company is able to demonstrate sufficient earnings (both historically and in the future) to absorb

these future deductions, the Company will release these valuation allowances to income.

NYSE: NAV

Frequently Asked Questions

Q21:

How has The Worker, Homeownership, and Business Assistance Act of 2009 affected Navistar?

This legislation provides an opportunity to carry back alternative minimum tax net operating losses

from the Company’s 2010 fiscal year and to receive a refund of alternative minimum tax payments

made in the prior five fiscal years. The Company intends to take advantage of this opportunity to the

fullest extent allowable by law.

Q22:

How will President Obama’s international tax policies impact Navistar, if enacted?

The President’s 2010 proposals would have anti-competitive implications for U.S. based companies

with global operations, such as Navistar. In the near term we would not anticipate a material adverse

impact on our financial statements due to the fact that we currently have a full valuation allowance

against

large

portion

our

deferred

tax

assets

and

are

still

utilizing

U.S.

net

operating

losses.

continue to monitor these developments and will make changes to our operations, as appropriate, to

address any such tax changes if ultimately adopted.

Q23:

What makes up our consolidated tax expense?

Our

pre-tax

operating

profits

reflects

our

worldwide

operations,

that

our

consolidated

tax

expense

reflects the impact of differing tax positions throughout the world. In general, we currently have full

valuation

allowances

against

the

deferred

tax

assets

our

U.S.

and

Canadian

operations.

Consequently, our tax expense in those jurisdictions is generally limited to current state or local taxes

and the impact of alternative minimum taxes. Our Brazilian and Mexican operations are profitable and

as a result we accrue taxes in those jurisdictions. This combination of factors causes our overall

consolidated effective tax rate to be fairly low.

NYSE: NAV

Frequently Asked Questions

Q24:

What

contributed

$15

million

increase

income

tax

expense

2010

compared

Q1 2009?

In general one would expect our tax expense to decrease quarter to quarter in line with the reduction

of pretax profit from Q1 2009 to Q1 2010. The increase in income tax expense in primarily driven by

two items:

A change in the Company’s quarterly provision process to include projected U.S. operations (only

Canada is now excluded) in the annual effective tax rate calculation.

Had our Q1 2009 tax provision been consistent with this method, our Q1 2009 provision would have

increased by approximately $16 million.

During the quarter, the Company elected to participate in a tax amnesty program in Brazil in an effort

to both manage future risks as well as obtain future cash benefits not otherwise available.

The costs incurred in participating in this program will be recovered by the ability to access certain benefits in

the future. Participation in this program resulted in a reduction to pretax income of $12 million and an

increase to tax expense of $3 million in Q1 (which will be reduced by $3 million in tax benefits realized

in succeeding quarters).

The Company also expects to resolve certain tax disputes that will result in a reduction of future tax expense

by approximately $5 to $10 million.

NYSE: NAV

Frequently Asked Questions

Q25:

Your

tax

footnote

the

10K

discloses

gross

deferred

tax

assets

$2.2

billion.

How

will

those

assets be used to offset future taxable income?

Simply put, deferred tax assets represent the value of future tax deductions attributable to items that

have already been expensed or deducted for book purposes. The most commonly understood

component of deferred tax assets is the value of our net operating losses, which will serve to reduce

taxable income in the future. In addition, we have several other major components of deferred taxes

which will reduce taxable income in the future. For example, the Company has accrued significant

OPEB, pension and other employee benefit expenses during prior years based on expected payments

to be made in the future. As these payments are made, the Company will realize tax deductions to the

extent of its future taxable income.

Q26:

What is your expected 2010 pension and OPEB GAAP expense?

Assuming no further containment actions and no curtailment events, we anticipate 2010 pension and

OPEB GAAP expense of approximately $185 to $200 million. In 2009, pension and OPEB GAAP

expense was $233 million.

Q27:

What are your expected 2010 and beyond pension funding requirements?

Current forecasts indicate that we may need to contribute approximately $150 million in 2010.

Assuming

further

actions

Congress,

from

2011

through

2013,

the

Company

will

required

contribute

least

$256

million

per

year

the

plans

depending

asset

performance

and

discount

rates in the next several years.

NYSE: NAV

Frequently Asked Questions

Q28:

What causes the variance between manufacturing cash interest payments and GAAP

interest expense?

The main variance between cash and GAAP interest results from the recent issuance of new

manufacturing debt. In October 2009, our manufacturing company issued $1 billion of senior

unsecured high yield notes and $570 million of senior subordinated convertible notes. As a

result of this issuance, future manufacturing interest expense will be higher than cash interest

payments due to the amortization of debt issuance costs are amortized over the life of each

note ($36 million), amortization of the original issue discount of the high yield notes ($37 million)

and amortization of the embedded call option in the convertible notes ($114 million). In

FY 2010, this variance will be much larger due to the timing of interest payments on the high

yield notes. Interest payment dates are in May and November starting in May 2010. Therefore,

we will only have one cash payment this fiscal year even though expense will show the full year

amount. As a result of this and other non-cash interest expense, FY 2010 may show a variance

of approximately $66 million between cash and GAAP interest.

NYSE: NAV

SEC Regulation G

This

presentation

not

accordance

with,

alternative

for,

U.S.

generally

accepted

accounting

principles

(GAAP).

The

non-GAAP

financial

information

presented

herein

should

considered

supplemental

to,

and

not

substitute

for,

superior

to,

financial

measures

calculated

accordance

with

GAAP.

However,

believe

that

non-GAAP

reporting,

giving

effect

the

adjustments

shown

the

reconciliation

above,

provides

meaningful

information

and

therefore

use

supplement

our

GAAP

reporting

identifying

items

that

may

not

the

core

manufacturing

business.

Management

often

uses

this

information

assess

and

measure

the

performance

our

operating

segments.

have

chosen

provide

this

supplemental

information

investors,

analysts

and

other

interested

parties

enable

them

perform

additional

analyses

operating

results,

illustrate

the results of operations giving effect to the non-GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance.

DEBT

January 31,

2010

October 31,

2009

(in millions)

Manufacturing operations

8.25% Senior Notes, due 2021, net of unamortized discount of $36 and $37 million at the

respective dates

964

963

3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $109

and $114 at the respective dates

461

456

Debt of majority owned dealership

131

148

Financing arrangements and capital lease obligations

249

271

Other

Total manufacturing operations debt

1,826

1,861

Less: Current portion

(189)

(191)

Net long-term manufacturing operations debt

1,637

1,670

Financial services operations

Asset-backed debt issued by consolidated SPEs, at variable rates, due serially through 2016

1,187

1,227

Bank revolvers, at fixed and variable rates, due dates from 2010 through 2015

1,100

1,518

Revolving retail warehouse facility, at variable rates, due 2010

500

Commercial Paper, at variable rates, due serially through 2010

Borrowing secured by operating and finance leases, at various rate, due serially through 2016

137

134

Total financial services operations debt

2,958

3,431

Less: Current portion

(834)

(945)

Net long-term financial services operations debt

2,124

2,486

Cash & Cash Equivalents

January 31,

2010

October 31,

2009

Manufacturing non-GAAP (Unaudited)

618

1,152

Financial Services non-GAAP (Unaudited)

Consolidated US GAAP (Audited)

690

1,212

Manufacturing Cash & Cash Equivalents non-GAAP (Unaudited)

618

1,152

Manufacturing Marketable Securities non-GAAP (Unaudited)

Manufacturing Cash, Cash Equivalents & Marketable Securities non-GAAP (Unaudited)

668

1,152

*Includes increase in cash and cash equivalents from consolidating Blue Diamond Truck and Blue Diamond Parts

Unaudited

NYSE: NAV

SEC Regulation G

Three Months Ended January 31st

($ millions)

FY 2010

Net income (loss) attributable to NIC

$17

Add back income taxes

Income before income taxes

$25

Less equity income from financial service operations

($12)

Income before income taxes and equity income from financial service operations

$13

Add back interest expense

$39

EBIT

$52

Add back depreciation and amortization*

$72

EBITDA

$124

*Includes depreciation of equipment leased to others

Navistar International Corporation (Manufacturing operations

with financial services operations on a pre-tax equity basis)

NYSE: NAV

SEC Regulation G –

Fiscal Year Comparison

This presentation is not in accordance with, or an alternative for, U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information presented herein should be

considered

supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

However, we believe that non-GAAP reporting, giving effect to the

adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our

GAAP

reporting by identifying items that may not be related to the

core manufacturing business.

Management often uses this information to assess and measure the

performance of our operating segments. We have chosen to provide this supplemental

information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the

non-

GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance.

2009

2008

Non GAAP

As Reported

Non GAAP

As Reported

Without

Impacts

With Impacts

Without

Impacts

With Impacts

U.S. and Canada Industry

181,800

244,100

($billions)

Sales and revenues, net

11.6

14.7

($millions)

Manufacturing segment profit*

707

1,088

Ford settlement net of related charges

160

(37)

Impairment of property, plant and equipment

(31)

(358)

Manufacturing segment profit

707

129

836

1,088

(395)

693

Below the line items

(excluding items listed below)

(468)

(502)

Write-off of debt issuance cost

(11)

Below the line items

(468)

(11)

(479)

(502)

Income (loss) excluding income tax

239

118

357

586

(395)

191

Income tax benefit (expense)

(34)

(3)

(37)

(58)

(57)

Net Income (loss) attributable to Navistar International Corporation

205

115

320

528

(394)

134

Diluted earnings (loss) per share ($'s)

2.86

1.60

4.46

7.21

(5.39)

1.82

Weighted average shares outstanding: diluted (millions)

71.8

73.2

* Includes: minority interest in net income of subsidiaries net of tax; extraordinary gain net of tax

NYSE: NAV

SEC Regulation G –

Goal Reconciliation

Future

2009

Current

Target

@ 350k

Industry

Original

Target

@ 414.5k

Industry

U.S. and Canada Industry

350,000

414,500

($billions)

Sales and revenues, net

$ 20 +

$ 15 +

($millions)

Manufacturing segment profit

1,780

1,600

Below the line items (including tax)

(888)

(775)

Net Income attributable to Navistar International Corporation

892

825

Diluted earnings (loss) per share ($'s) attributable to Navistar International Corporation

12.31

11.46

Weighted average shares outstanding: diluted (millions)

~ 72.5

NYSE: NAV

SEC Regulation G –

Quarterly Comparison

This

presentation

not

accordance

with,

alternative

for,

U.S.

generally

accepted

accounting

principles

(GAAP).

The

non-GAAP

financial

information

presented

herein

should

considered

supplemental

to,

and

not

substitute

for,

superior

to,

financial

measures

calculated

accordance

with

GAAP.

However,

believe

that

non-GAAP

reporting,

giving

effect

the

adjustments

shown

the

reconciliation

above,

provides

meaningful

information

and

therefore

use

supplement

our

GAAP

reporting

identifying

items

that

may

not

the

core

manufacturing

business.

Management

often

uses

this

information

assess

and

measure

the

performance

our

operating

segments.

have

chosen

provide

this

supplemental

information

investors,

analysts

and

other

interested

parties

enable

them

perform

additional

analyses

operating

results,

illustrate

the

results

operations

giving

effect

the

non-GAAP

adjustments

shown

the

above

reconciliations

and

provide

additional

measure

performance.

2010 Q1

2009 Q1

As Reported

Non GAAP

As Reported

Without

Impacts

With Impacts

($billions)

Sales and revenues, net

2.8

3.0

($millions)

Manufacturing segment profit

168

211

196

407

Below the line items

(143)

(174)

(6)

(180)

Income excluding income tax

190

227

Income tax benefit (expense)

(8)

(4)

Net Income attributable to Navistar International Corporation

186

234

Diluted earnings per share ($'s) attributable to Navistar International Corporation

0.23

0.67

2.60

3.27

Weighted average shares outstanding: diluted (millions)

72.1

71.6

* Includes: minority interest in net income of subsidiaries net of tax; extraordinary gain net of tax

Navistar International (NAV) 8-K1st Quarter 2010 Earnings Presentation