 NYSE: NAV 1 1st Quarter 2010 Earnings Presentation March 10, 2010 Exhibit 99.1 |
 NYSE: NAV 2 2 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 3 3 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. We 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 4 4 • 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 4 |
 NYSE: NAV 5 What We Said at Analyst Day…. Past Objective Status Next $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 5 |
 NYSE: NAV 6 6 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% 1 st half flat/3 rd qtr down/4 th qtr up Diesel Ford concluded 12/31/2009 1 st 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 st half • Up in 2 nd half • Same as 2009 in 1 st half • Up in 2 nd half Global/niche markets Up in 2 nd half Mahindra launch 1 st half NC2 – 2011+ R&D Similar Other 2010 launch costs $50M Mostly 1 st half 6 |
 NYSE: NAV 7 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 1Q09 1Q10 0 5,000 10,000 15,000 20,000 25,000 1Q09 1Q10 Traditional Expansionary 0 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 $0 $50 $100 $150 $200 $250 1Q09 1Q10 $37 $25 $0 $5 $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) (A) (A) (B) (B) (B) 8 |
 NYSE: NAV 9 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 st 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 10 10 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 11 11 2010 Heavy Strategy 11 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% 0% 5% 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 12 12 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% 0% 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 13 13 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 Better Down Performance Better Better Better Life Same Better Better Fuel economy Better Neutral Better After treatment NA No change No change UREA - SCR Total Vehicle UREA usage ??? Urea cost Up Smoke test underway in the wind tunnel. Photos Credit: Lawrence Livermore National Laboratory 14 |
 NYSE: NAV 15 15 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 16 16 DXM Retrofit Opportunities Dash production with DXM Suspension Fielded Dash DXM upgrade DXM upgrade via rolling chassis BDAR or value based decision for all variants |
 NYSE: NAV 17 17 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 18 18 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 19 19 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 20 20 Next Up – Truck Class 4/5 Enablers to Future Integrated Products DuraStar DuraStar Cab Cab Day, Extended & Crew CF Chassis CF Chassis Drop Rails Drop Rails MaxxForce MaxxForce 7 7 ® Engine Engine Leveraged Our Assets Leveraged Our Assets 0% 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 21 21 Next Up – Bus Type A School 0 10 20 30 40 50 60 70 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0 10 20 30 40 50 60 70 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 22 22 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 23 23 Tailored to the Region Faster Development Higher Quality Lower Costs Differentiation Leveraging Our Assets: Common Platforms |
 NYSE: NAV 24 24 MNAL Launch • Full range of benchmark cabover products • Proprietary dump bodies and buses • Proprietary engines • Cost structure tailored to local market 24 |
 NYSE: NAV 25 25 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% 0% 5% 10% 15% 20% 25% 30% FY07 FY08 FY09 Market Share Class 8 Heavy Truck |
 NYSE: NAV 26 26 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 27 27 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 GE completed •Lower engine production/Ford •Lower truck production – Garland & Bus due to 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 28 |
 NYSE: NAV 29 29 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 29 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 30 30 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 31 31 $- $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 32 32 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 33 33 2010 Outlook – $1.75 to $2.25 EPS 33 * 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 • 1 st half flat • 2 nd qtr / 3 rd qtr down • 4 th qtr up Diesel Ford concluded 12/31/2009 2010 product launches • 1 st 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 st half • Up in 2 nd half Same as 2009 • Same as 2009 in 1 st half • Up in 2 nd half Global/niche markets Up in 2 nd half Product launch Investing in future growth R&D Similar Incr. launch spend Similar to 2009 spend Other 2010 launch costs $50M Incr. launch spend Mostly 1 st half |
 NYSE: NAV 34 34 2010 Outlook & Beyond • Strong results in a down economy – Profitable 1 st quarter – Product cost savings – Controlled discretionary spending – Capital structure NFC • Military opportunities – finalize timing • Investing in future growth – global strategy • Positioned well for economic recovery |
 NYSE: NAV 35 Appendix |
 NYSE: NAV Manufacturing Cash Flow ($ in millions) Note: This slide contains non-GAAP information, please see the Reg G in appendix for detailed reconciliation 36 Beginning Mfg. Cash 1 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 $0 $0 From Investing / (Cap Ex) ($200) ($220) ($284) ($84) From Financing / (Debt Pay Down) ($480) ($133) $56 ($59) Exchange Rate Effect $19 ($21) $9 ($7) Net Cash Flow ($492) $55 $295 ($484) Blue Diamond Consolidation $0 $0 $80 $0 Ending Mfg. Cash 1 Balance: October 31, 2007 $722 October 31, 2008 $777 October 31, 2009 2 $1,152 January 31, 2010 2 $668 1 Cash = Cash, Cash Equivalents & Marketable Securities 2 Includes cash attributable to non-controlling interest |
 NYSE: NAV 37 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) Q1 Q2 Q3 Q4 Full Year Cash 200 $ 200 $ Warranty 75 75 Restructuring charges (58) 3 (4) (59) Other related income (expense) (27) (35) 18 (12) (56) 190 $ (32) $ 18 $ (16) $ 160 $ Actual |
 NYSE: NAV 38 38 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% 57% 48% 58% 55% 56% 60% 61% 66% 61% 60% NA NA NA 60% Medium (Class 6-7) 34% 35% 39% 35% 36% 30% 39% 33% 39% 35% 33% NA NA NA 33% Heavy (LH & RH) 16% 15% 19% 25% 19% 24% 23% 29% 24% 25% 23% NA NA NA 23% Severe Service 28% 26% 26% 29% 27% 32% 36% 33% 33% 34% 34% NA NA NA 34% Combined Class 8 20% 19% 21% 26% 22% 26% 28% 30% 27% 28% 26% NA NA NA 26% Combined Market Share 27% 27% 28% 32% 29% 30% 35% 36% 36% 34% 31% NA NA NA 31% 2010 Market Share - U.S. & Canada School Bus and Class 6-8 2008 2009 |
 NYSE: NAV 39 39 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 NA NA NA 3,100 MEDIUM 3,900 NA NA NA 3,900 HEAVY 5,200 NA NA NA 5,200 SEVERE 3,100 NA NA NA 3,100 TOTAL 15,300 NA NA NA 15,300 MILITARY (U.S. & Foreign) 900 NA NA NA 900 EXPANSIONARY 4,500 NA NA NA 4,500 NA NA NA WORLD WIDE TRUCK 20,700 NA NA NA 20,700 |
 NYSE: NAV 40 40 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 NA NA NA 31,000 Ford sales - U.S. and Canada 24,700 NA NA NA 24,700 Other OEM sales 1,700 NA NA NA 1,700 Intercompany sales 16,400 NA NA NA 16,400 Total Shipments 73,800 NA NA NA 73,800 2010 2008 2009 |
 NYSE: NAV 41 41 Order Receipts – U.S. & Canada Percentage 2010 2009 Change Change 1,600 3,200 (1,600) (50) 7,100 2,800 4,300 154 Class 8 heavy trucks 6,200 5,400 800 15 Class 8 severe service trucks 3,400 2,400 1,000 42 18,300 13,800 4,500 33 9,600 7,800 1,800 23 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 42 42 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 43 43 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 44 44 Frequently Asked Questions Q1: What should we assume for capital expenditures in 2010? A: For 2010, excluding our NFC and Dealcor acquisition of vehicles for leasing, we expect our capital expenditures to be below our normal $250 million to $350 million range. We continue to fund our strategic programs. Q2: What is in your Dealcor debt? A: 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? A: Of our 281 primary NAFTA dealers, we have ownership interest in 16 DealCor dealers as of January 31, 2010. We expect to further reduce our DealCor dealers before October 31, 2010. Q4: What percentage of truck purchases do you fund? A: 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? A: 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 45 45 Frequently Asked Questions Q6: Are there any requirements for NFC leverage? A: 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? A: We primarily finance our wholesale portfolio in traditional private or public securitizations, and through our bank facility. Q8: How are your dealers doing? A: 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? A: 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? A: 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 46 46 Frequently Asked Questions Q11: What is your total amount of capacity at NFC? A: 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? A: 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 do your repossession percentages compare to the overall size of your portfolios? A: Repossessions as a percent of retail balances were approximately 3.8% for Q1 2010. Q14: What is the current JLTV status? A: 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 of the design process and the start of 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 47 47 Frequently Asked Questions Q15: What changes have occurred in Defense spending due to the increase in troops heading to Afghanistan? A: 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? A: Navistar conducted an extensive industry study to determine which product performs well and can be easily retrofitted onto the MaxxPro ® vehicle design. The DXM is a no-compromises solution that can also be integrated into MaxxPro ® vehicles currently in theater. Q17: When will MXT Tactical Support Vehicles (Husky) arrive in theater? A: Vehicles for the U.K. are currently being deployed to Afghanistan. Q18: Will Navistar submit a proposal for the Ground Combat Vehicles program? A: We are currently evaluating the government’s request for proposals to determine the potential opportunities for Navistar. |
 NYSE: NAV 48 48 Frequently Asked Questions Q19: What are the 2010 emissions requirements? A: 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? A: 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 49 49 Frequently Asked Questions Q21: How has The Worker, Homeownership, and Business Assistance Act of 2009 affected Navistar? A: 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? A: 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 a large portion of our deferred tax assets and are still utilizing U.S. net operating losses. We 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? A: Our pre-tax operating profits reflects our worldwide operations, so 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 of 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 50 50 Frequently Asked Questions Q24: What contributed to a $15 million increase in income tax expense in Q1 2010 as compared to Q1 2009? A: 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: 1. 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. 2. 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 51 51 Frequently Asked Questions Q25: Your tax footnote in the 10K discloses gross deferred tax assets of $2.2 billion. How will those assets be used to offset future taxable income? A: 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? A: 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? A: Current forecasts indicate that we may need to contribute approximately $150 million in 2010. Assuming no further actions by Congress, from 2011 through 2013, the Company will be required to contribute at least $256 million per year to the plans depending on asset performance and discount rates in the next several years. |
 NYSE: NAV 52 52 Frequently Asked Questions Q28: What causes the variance between manufacturing cash interest payments and GAAP interest expense? A: 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 53 53 SEC Regulation G 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. 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 21 23 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 500 500 Commercial Paper, at variable rates, due serially through 2010 34 52 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) 72 60 Consolidated US GAAP (Audited) 690 $ 1,212 $ Manufacturing Cash & Cash Equivalents non-GAAP (Unaudited) 618 $ 1,152 $ Manufacturing Marketable Securities non-GAAP (Unaudited) 50 - 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 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 $8 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 $124 *Includes depreciation of equipment leased to others Navistar International Corporation (Manufacturing operations with financial services operations on a pre-tax equity basis) 54 |
 NYSE: NAV 55 55 SEC Regulation G – Fiscal Year Comparison This presentation is not in accordance with, or an alternative for, U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our GAAP reporting by identifying items that may not be related to the core manufacturing business. Management often uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non- GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance. 2009 2008 Non GAAP Non GAAP As Reported Non GAAP Non GAAP As Reported Without Impacts Impacts With Impacts Without Impacts Impacts With Impacts U.S. and Canada Industry 181,800 244,100 ($billions) Sales and revenues, net 11.6 $ 14.7 $ ($millions) Manufacturing segment profit* 707 $ 707 $ 1,088 $ 1,088 $ Ford settlement net of related charges 160 160 (37) (37) Impairment of property, plant and equipment (31) (31) (358) (358) Manufacturing segment profit 707 129 836 1,088 (395) 693 Below the line items (excluding items listed below) (468) (468) (502) (502) Write-off of debt issuance cost (11) (11) - Below the line items (468) (11) (479) (502) - (502) Income (loss) excluding income tax 239 118 357 586 (395) 191 Income tax benefit (expense) (34) (3) (37) (58) 1 (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 71.8 73.2 73.2 * Includes: minority interest in net income of subsidiaries net of tax; extraordinary gain net of tax |
 NYSE: NAV 56 56 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 ~ 72.5 |
 NYSE: NAV 57 57 SEC Regulation G – Quarterly 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. 2010 Q1 2009 Q1 As Reported Non GAAP Non GAAP As Reported Without Impacts 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 25 37 190 227 Income tax benefit (expense) (8) 11 (4) 7 Net Income attributable to Navistar International Corporation 17 $ 48 $ 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 71.6 * Includes: minority interest in net income of subsidiaries net of tax; extraordinary gain net of tax |