 2nd Quarter 2010 Earnings Presentation June 9th, 2010 Exhibit 99.2 NYSE: NAV 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. |
 3 3 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. 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 K. Neal International HYATTSVILLE, MD - JUNE 4: Stephen W. Neal, president and CEO of K. Neal International Trucks gives U.S. President Barack Obama and Vice President Joe Biden a tour of commercial truck dealership and truck parts supplier, K. Neal International on June 4, 2010 in Hyattsville, Maryland. Obama spoke after the tour on the gain of over 400,000 jobs and was encouraging for the economy to get stronger. 4 NYSE: NAV |
 • Results • Strategy - Niche markets - Global • Shareowner value Agenda • Operational – Industry as expected – Expected military revenue of ~$400 million in 2010 2Q; military parts revenue pushed out to second half of the year – Ford N. A. diesel, down by $200 million 2010 2Q vs. 2009 2Q; Ford ceased 12/31/09 – Launches Mahindra 2010 emission products • Non-Operational – EPA/CARB resolution – Healthcare – Annual incentive/Brazilian cost recovery • Investments – Global – Traditional NYSE: NAV 5 |
 6 NYSE: NAV 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2Q09 2Q10 All Other U.S. and Canada Ford 2010 2Q Information $2,743** 26,400 37,500 63,900 56,100 $2,808 * Excludes 1,500 units from BDT (F650 & F750) consolidation ** 2010 Q2 revenue includes ~$300 million of BDT/BDP revenue due to consolidation 55,900 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2Q09 2Q10 Base Base: Increase primarily due to NA Truck Military Military N.A.Ford N.A. Ford 0 5,000 10,000 15,000 20,000 25,000 2Q09 2Q10 What we have said: • Industry – Retail Sales – 1 st Half 2010 will be same as end of 2009 – 2 nd Half 2010 should be stronger than 1 st Half; 3Q 2010 will be down with a truck recovery beginning in 4Q 2010 • Production 16,400 19,900* |
 NYSE: NAV 2010 Q2 Information: Profitable at all points in the cycle $87 $149 $0 $20 $40 $60 $80 $100 $120 $140 $160 2Q09 2Q10 $0.16 $0.42 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 2Q09 2Q10 $21 $20 $0 $5 $10 $15 $20 $25 $30 $35 $40 2Q09 2Q10 A A – excludes income attributable to non-controlling interests of $13M 2010 2Q: $149 2009 2Q: $87 B/(W): $62 • Improved core business • Reduced military • Reduced Ford • Brazilian Cost recovery (VAT) 2010 2Q: $0.42 2009 2Q: $0.16 B/(W): $0.26 Tax benefit:$18 million 2010 2Q: $20 2009 2Q: $21 B/(W): ($1) • Annual incentive expense increased by ($47) million • Retiree costs decreased by $12 million • Interest expense increased by ($16) million • JV start up expenses of ($13) million Note: This slide contains non-GAAP information, please see the Reg G in appendix for detailed reconciliation. 7 Positioned well for the future |
 8 Actions Taken in 2010 That Impact Our Strategy Strategy: Leveraging What We Have and What Others Have Built • 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 8 NYSE: NAV |
 Medium Truck Great Products – Market Share 63% Market Share 2Q10 Severe Service Truck* Heavy Truck FY07 60% FY08 55% FY09 61% YTD10 61% *Excludes U.S. Military shipments FY07 36% FY08 36% FY09 35% YTD10 39% FY07 25% FY08 27% FY09 34% YTD10 34% FY07 15% FY08 19% FY09 25% YTD10 23% Class 8** School Bus (U.S. & Canada) **Market share based on brand 44% Market Share 2Q10 35% Market Share 2Q10 22% Market Share 2Q10 26% Market Share 2Q10 9 School Bus & Combined Class 6-8 Market Share – 2Q FY08: ; 2Q FY09: ; 2Q FY10: NYSE: NAV |
 NYSE: NAV Our Emission Strategy Gives Us a Competitive Advantage 61% Market Share YTD2010 School Bus 39% Market Share YTD2010 34% Market Share YTD2010 Severe Service Truck* Heavy Truck** 23% Market share YTD2010 Medium Truck *Excludes U.S. Military deliveries **Market share based on brand Heavy Sleeper – 30% Market Share YTD Order Receipts Market Share Full Year 2009 2Q 2010 YTD April 2010 YTD April Full Year 2010 Goal School Bus 61% 63% 61% 52% 60% + Medium 35% 44% 39% 53% 40% + Severe Service 34% 35% 34% 48% 35% + Heavy 25% 22% 23% 38% 25% _ 10 |
 11 11 NYSE: NAV 2010 Myths Decreased “green” image Less performance and torque Generates more heat Credits Back up plan Unproven technology Buying business Miles tested Fuel economy Can’t meet emissions |
 12 12 NYSE: NAV Purchase Consideration for EGR and SCR Technology How important are each of the following when it comes to the decision to purchase an EPA 2010 compliant engine? (% saying very important; n=1, 165; +/- 2.9%) 17.6% - Undecided 75.4% 70.1% 59.6% 59.0% 44.2% Fuel efficiency Proven technology (production trucks/engines have been proven on-the-road) Engine optimization Scheduled maintenance required by the 2010 technology Weight added by the 2010 technology Online study developed by Quixote Group Research and was designed to support the efforts of the communication subcommittee of the North American heavy SCR stakeholder group. |
 13 13 NYSE: NAV Our strategy was to reduce NOx in stages, which allowed us to generate credits and minimize the technological changes from 2007 to 2010 Proven Technology Note: Euro V Emissions: 2gNOxg/kwhr or 1.5gNOxg/bhphr Block EGR Cylinder Head Fuel System Air System Euro V 90% EPA 2007 – 1.1 NOx 55% Euro VI EPA 2010 - 0.5 NOx 0.8 NOx What did we change: What does this mean for our customers: • Moved cooler • Increased fuel pressures • Packaging and air flow • Single engine controller • Minimal changes to improve reliability • Delivers same to improved fuel economy 2010 Engine same as 2009 ~10,000 EPA “2007” engines in field with over 1,100 unique customers 38% 0.2 0 0.5 1 1.5 2 |
 Value Proposition What changed since we developed the original ProStar ® : • ProStar+ ® vs. Original ProStar ® • Weight difference MaxxForce 13L vs. ISX (900 lbs) (500 lbs) Total 2010 ProStar+ ® Weight Advantage Note: Avoids liquid urea of 300 to 400 lbs (1,400 lbs) In addition we have avoided another 400 lbs since we don’t use Urea -SCR What did we change: What does this mean for our customers: • Improved NVH • Jake Brake option • Enhanced interior • Ultra shift transmission • Performance equal or greater than 15L • Increase fuel economy • Lower cost • Emissions compliance on OEM Four years ago we launched ProStar ® ; which has outsold all other trucks in its class over the past 12 months. 14 Heavy Truck FY07 15% FY08 19% FY09 25% YTD10 23% 22% Market Share 2Q10 NYSE: NAV |
 15 15 NYSE: NAV 2010 U.S. and Canada Heavy Strategy – Maintain 25% share 2010 Strategy •Convert customers to the 13L •Drive customer – pre/post buy 2009 Transition 2010 Big Bore 11L-15L 11L/13L 46% 15L 54% MaxxForce ® 11L/13L 330 hp-475 hp @ 1900 rpm 1250-1700 hp lb. –ft. @ 1000 rpm <425 hp 12% 425- 455 hp 64% 475 550 hp 24% - Configurations |
 16 16 NYSE: NAV Navistar Defense 2010 Sales Mix Goal: $2 Billion Sustainable FY 2010 (updated June 9 th , 2010) U.S. and FMS Vehicles Direct Foreign Vehicles Services Parts FY 2009 Firm Orders Opportunity ~$2.2B revenue ~$0.4-$0.6B revenue ~$2.6-$2.8B revenue ~$3B revenue U.S. and FMS Vehicles Direct Foreign Vehicles Services Capability Insertion Parts Parts Capability Insertion Vehicles |
 17 17 NYSE: NAV $2 Billion Sustainable Navistar Defense • Leverages base business • Continued strength Augment Sustainable base with Selective Opportunities Engineering Manufacturing Sustainment Enablers What’s happened since we talked to you last: • May 4 - $89 million for TACOM vehicles for the Afghan National Army • May 4 - $102 million for MaxxPro ® Dash MRAP capability insertion • May 26 - $61 million to support Foreign Military Sales (FMS) $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 FY 2008 FY 2009 FY 2010 Guidance $2 billion sustainable |
 18 18 NYSE: NAV MXT Husky Former Prime Minister Gordon Brown in Afghanistan Foreign Military Sales The MaxxPro is now serving with six Allied Nations |
 19 19 NYSE: NAV Future Opportunities • MaxxPro DXM Upgrade via Rolling Chassis - Other Capability Insertions • Potential long-term MRAP parts contract Canada SMP DXM Rolling Chassis HMMWV Recap • Canada standard military pattern - Teaming with Tatra - 1,500 units - Proposals due fall 2010 Vehicle sustainment Upcoming programs • HMMWV Recap • Seven JLTV prototype units and four companion trailers delivered for TD Phase testing • JLTV prototype units and companion trailer to be delivered to Australia for testing in June 7000-MV Opportunities • Afghan National Army and Police • Iraq MoD and MoI |
 20 20 NYSE: NAV Investing in the Future Finished |
 NYSE: NAV 21 DuraStar DuraStar Cab Cab Day, Extended & Crew CF Chassis CF Chassis Drop Rails Drop Rails MaxxForce MaxxForce 7 7 ® Engine Engine North American Niche Market Launches Type A School Launch: May 2011 Cutaway Commercial Launch: January 2011 Class 2c-3 All-Electric Truck Announced: August 2009 Launch: May 2011 Class 4/5 |
 NYSE: NAV 22 22 2014 Global Truck Market Overview Note: Includes Medium and Heavy Trucks >6T only Source: JD Power; Monitor Analysis, Regional Analysis, Econometrix, ERG, and World Truck manufacturer’s Report 0% 2% 4% 6% 8% 10% 12% 2010 2011 2012 2013 2014 Global Projected GDP China India Peru North America South Africa Colombia Chile Brazil |
 Mahindra-Navistar: New Product Launches 49T Launch: Sept 2010 Mahindra-Navistar: New Product Launches 31 T Launch: July 2010 25 T Cowl Launch: June 2010 25 T Tipper Launch: June 2010 40 T Launch: July 2010 25 T Launch: May 2010 NYSE: NAV 23 |
 NYSE: NAV 24 24 NC 2 • 2010 invest in the future • Launch – Leverage our strengths – Select countries that have largest opportunities: South America, India, China, Australia • Goal – 10% segment margins |
 25 Our Strategy Drives Shareholder Value Strategy: Leveraging What We Have and What Others Have Built • 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 NYSE: NAV 25 |
 NYSE: NAV 26 26 Manufacturing Cash Update Note: This slide contains non-GAAP information, please see the Reg G in appendix for detailed reconciliation. ($ millions) January 31, 2010 ending manufacturing cash and marketable securities $668 Adjusted manufacturing EBITDA 1 $113 Change in net working capital 2 ($58) Capital expenditures ($38) Other cash flows ($55) April 30, 2010 manufacturing cash and marketable securities³ $630 FY 2010 Forecast Manufacturing EBITDA + + + Net Working Capital NFC Trade Receivable + + 2010 Transition Inventory + + Capital & Investment Spending - - Forecasted October 31, 2010 ending manufacturing cash and marketable securities $1,000 - $1,200 1 Includes the add back for depreciation of equipment leased to others 2 NWC = A/R, Inventory, Other Current Assets, A/P & Other Current Liabilities 3 Includes cash from the consolidation of minority interests |
 NYSE: NAV 27 27 Below the Line Actions • Funded 95% in 2007 – Minimal service cost for actives • Asset returns > liability interest • Minimal cash contributions – 2008 market impacts – negative impact on assets • Asset returns < liability interest • Amortize the investment losses • Expanded cash contributions • Asset returns have exceeded assumed annual returns (fiscal YTD: 12.7%) – Relief by extending funding requirements • Historically expense > $100 million annually – Medicare advantage - lowered liability by ~$500 million (2007-2009) – Medicare Part D - lowered liability by $340 million (2010) – Health care reform – increased liability by ~$100 million (2010) • Long term objective: Provide good health care coverage at an affordable cost – Wellness programs – promote healthy living – Government supported programs – Cost control Pension OPEB |
 * U.S. & Canada Class 6-8 & School Bus 28 NYSE: NAV |
 2010 Guidance We continue to invest today, to ensure the future NYSE: NAV 29 Manufacturing Segment Profit is not in accordance with, or an alternative for, U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our GAAP reporting by identifying items that may not be related to the core manufacturing business. Management often uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance. 6/9/2010 Guidance U.S. and Canada Industry 195,000 – 215,000 ($Billions) Sales and revenues, net $13.2 – $13.7 ($Millions) Manufacturing segment profit* 800 – 850 Below the line items (582) – (586) Income excluding income tax 218 – 264 Income tax expense (20) – (30) Net income attributable to Navistar International Corp. (NIC) $198 – $234 Diluted earnings per share ($'s) attributable to NIC $2.75 – $3.25 Weighted average shares outstanding: diluted (millions) ~ 72.5 * Includes: Net income attributable to non-controlling interests |
 Summary – Delivering on our Commitments Goal of: • $20 billion in revenue • $1.8 billion in segment profit at average of cycle 30 NYSE: NAV |
 NYSE: NAV 31 Appendix |
 NYSE: NAV Market Share – U.S. & Canada School Bus and Class 6-8 32 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 April YTD Bus (School) 57% 57% 48% 58% 55% 56% 60% 61% 66% 61% 60% 63% NA NA 61% Medium (Class 6-7) 34% 35% 39% 35% 36% 30% 39% 33% 39% 35% 33% 44% NA NA 39% Heavy (LH & RH) 16% 15% 19% 25% 19% 24% 23% 29% 24% 25% 23% 22% NA NA 23% Severe Service 28% 26% 26% 29% 27% 32% 36% 33% 33% 34% 34% 35% NA NA 34% Combined Class 8 20% 19% 21% 26% 22% 26% 27% 30% 27% 28% 26% 26% NA NA 26% Combined Market Share 27% 27% 28% 32% 29% 30% 35% 36% 36% 34% 31% 35% NA NA 33% 2009 2010 Market Share – U.S. & Canada School Bus and Class 6-8 2008 |
 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 2,300 4,500 11,100 WORLD WIDE TRUCK 19,700 16,400 16,900 22,800 75,800 Fiscal year 2010 1Q10 2Q10 3Q10 4Q10 Full Year 2010 BUS 3,100 3,100 NA NA 6,200 MEDIUM 3,900 5,300 NA NA 9,200 HEAVY 5,200 4,600 NA NA 9,800 SEVERE 3,100 3,000 NA NA 6,100 TOTAL 15,300 16,000 NA NA 31,300 MILITARY (U.S. & Foreign) 900 1,000 NA NA 1,900 EXPANSIONARY 3,900 4,400 NA NA 8,300 WORLD WIDE TRUCK 20,100 21,400 NA NA 41,500 33 |
 34 34 NYSE: NAV World Wide Engine Shipments Navistar 1st Q 2nd Q 3rd Q 4th Q Full Year Ford 60,000 56,200 65,400 53,500 235,100 Other OEM's (All Models) 21,000 26,400 29,100 27,700 104,200 Engine Shipments to Truck Group 23,100 12,100 13,700 16,500 65,400 Total Shipments 104,100 94,700 108,200 97,700 404,700 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 22,400 22,300 24,600 29,100 98,400 Intercompany sales 14,400 12,600 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 Apr. YTD OEM sales - South America 31,000 34,600 NA NA 65,600 Ford sales - U.S. and Canada 24,700 200 NA NA 24,900 Other OEM sales 1,700 3,600 NA NA 5,300 Intercompany sales 16,400 17,700 NA NA 34,100 Total Shipments 73,800 56,100 NA NA 129,900 2010 2008 World Wide Engine Shipments 2007 2009 |
 35 35 NYSE: NAV Order Receipts – U.S. & Canada Percentage Percentage 2010 2009 Change Change 2010 2009 Change Change 1,900 2,800 (900) (32) 3,500 6,000 (2,500) (42) 2,300 2,500 (200) (8) 9,400 5,300 4,100 77 Class 8 heavy trucks 6,900 3,700 3,200 86 13,100 9,100 4,000 44 Class 8 severe service trucks 2,700 2,500 200 8 6,100 4,900 1,200 24 13,800 11,500 2,300 20 32,100 25,300 6,800 27 9,600 6,200 3,400 55 19,200 14,000 5,200 37 (A) The three and six months ended April 30, 2009 have been recast to exclude 200 and 1,400 units, respectively, related to U.S. military contracts to reflect our new methodology for categorization of "traditional" units Total "Traditional" Markets Combined Class 8 (Heavy and Severe Service) "Traditional" Markets School buses Class 6 and 7 medium trucks Six Months Ended April 30, Order Receipts: U.S. & Canada (Units) Three Months Ended April 30, |
 36 36 NYSE: NAV NFC Liquidity Remains Strong Retail Notes Bank Facility • As of April 30, 2010, NFC had total available undrawn committed funding of more than $500M – Sold $600M of wholesale floor plan notes to support dealer inventory funding since November – Refinanced bank revolver in December • In May, NFC completed the sale of $881M of asset-backed retail notes in a 144-A transaction • In March, NFC announced strategic alliance with GE Capital for retail program in the U.S. – NFC will need less liquidity to support new retail sales – NFC’s liquidity will also be enhanced as existing notes pay off • NFC stabilized and improved earning profile in 2010 • $500M revolving warehouse (TRIP) to be paid off in June 2010 • New $881M 144-A transaction in May – Restructured older conduit transactions – Increased liquidity – Decreased costs • 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 April 30, 2010 – ~$1.1B funding facility (NFSC) – $500M available • NFSC terms – Bank conduit portion renewed August 2009 – Public portions mature January 2012 and October 2012 Off balance sheet |
 37 37 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 |
 38 38 NYSE: NAV 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 at 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 April 30, 2010? A: Of our 279 primary NAFTA dealers, we have ownership interest in 14 DealCor dealers as of April 30, 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 VFN facility, which funds dealer inventory, matures in August of 2010. We are currently in discussion to effectively renew this facility. |
 39 39 NYSE: NAV 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. |
 40 40 NYSE: NAV 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 April 30, 2010. Q12: How does your NFC derivative expense compare to last year? A: Our derivative expense for Q2 2010 was $1 million, which compares favorably to our derivative expense of $9 million for the three months ended April 30, 2009. Q13: How do your repossession percentages compare to the overall size of your portfolios? A: Loan repossessions as a percent of retail balances were approximately 3.3% (annualized) for Q2 2010. Q14: What is the current Joint Light Tactical Vehicle (JLTV) program status? A: Navistar and BAE delivered 7 JLTV units and four trailers for testing on May 3 as part of the 27-month JLTV Technology Development (TD) phase. Australia will also be receiving test units as part of the TD phase. Q15: Does Navistar plan to participate in the Ground Combat Vehicles program? A: We have been looking into opportunities, but this program favors tracked vehicles. Q16: What are your margins for military vehicles? A: We do not break margins out specific to our military vehicles. These numbers are reported as part of our Truck Group financials. |
 NYSE: NAV Frequently Asked Questions Q17: What is the status of any MaxxPro ® Dash rolling chassis orders? A: At this time, we stand ready to support any needs from the military should they choose to retrofit the remainder of the MaxxPro fleet with DXM independent suspension. Q18: What are the 2010 emissions requirements? A: The rules allow manufacturers to go to 0.5 NOx if they cleaned up the environment earlier with advanced technology; manufacturers need to be at 0.2 NOx if they chose not to introduce advanced technologies earlier. Q19: What will Navistar do to meet the 0.2 NOx emissions when its credits are depleted? A: Navistar remains committed to its strategy of providing solutions that let customers focus on their business, not emissions regulations. Solutions under development are multi-pronged and include our prime path of in-cylinder solutions along with application-specific solutions such as the Amminex metal ammine-based NOx reductant delivery system which Navistar announced in December 2009. 41 |
 42 42 NYSE: NAV Frequently Asked Questions Q20: How much net operating losses remain, 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. (The difference from the reported balance is attributed to stock option accounting.) 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 . When we release the valuation allowances, $72 million will impact shareowner’s equity and the balance will favorably impact net income. |
 43 43 NYSE: NAV 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 the recent tax legislative proposals impact Navistar, if enacted? A: In the near term we would not anticipate a material 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 would address any such tax changes if ultimately adopted. |
 44 44 NYSE: NAV Frequently Asked Questions Q23: What makes up our consolidated tax expense? A: Our pre-tax operating profits reflect our worldwide operations, similarly 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. Q24: What contributed to the $10 million decrease in income tax expense in Q2? A: During Q2 the company resolved several outstanding tax audits in the U.S., Canada and Mexico which generated a $10 million favorable result as compared to amounts previously reserved. There was no additional expense in the period as a result of lower projected foreign taxes and increased domestic earnings. |
 45 45 NYSE: NAV 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 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 which 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. 46 |
 47 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 June 8, 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 |
 2010 Guidance Truck Industry Units 195,000 to 215,000 Revenue ($ Billions) 13.2 to 13.7 ($ Millions (excluding EPS)) Mfg. Segment Profit 800 to 850 Below the line items (582) to (586) Profit Excluding Tax 218 to 264 Net Income attributable to NIC 198 to 234 Tax Rate 9% to 11% Diluted EPS attributable to NIC $2.75 to $3.25 # of shares ~72.5M Guidance NYSE: NAV 48 |
 49 49 NYSE: NAV ($ in millions) Note: This slide contains non-GAAP information, please see the Reg G in appendix for detailed reconciliation FYTD Manufacturing Cash Flow Beginning Mfg. Cash 1 Balance Fiscal 2007 Fiscal 2008 Fiscal 2009 YTD - FY 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 ($307) Dividends from NFC $400 $15 $0 $0 From Investing / (Cap Ex) ($200) ($220) ($284) ($145) From Financing / (Debt Pay Down) ($480) ($133) $56 ($66) Exchange Rate Effect $19 ($21) $9 ($4) Net Cash Flow ($492) $55 $295 ($522) 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 April 30, 2010 2 $630 1 Cash = Cash, Cash Equivalents & Marketable Securities 2 Includes cash from the consolidation of minority interests |
 50 50 NYSE: NAV SEC Regulation G DEBT April 30, 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 $104 and $114 at the respective dates 466 456 Debt of majority owned dealership 148 148 Financing arrangements and capital lease obligations 241 271 Other 20 23 Total manufacturing operations debt 1,839 $ 1,861 $ Less: Current portion (201) (191) Net long-term manufacturing operations debt 1,638 $ 1,670 $ Financial services operations Asset-backed debt issued by consolidated SPEs, at variable rates, due serially through 2016 941 $ 1,227 $ Bank revolvers, at fixed and variable rates, due dates from 2010 through 2015 1,074 1,518 Revolving retail warehouse facility, at variable rates, due 2010 500 500 Commercial Paper, at variable rates, due serially through 2010 60 52 Borrowing secured by operating and finance leases, at various rate, due serially through 2016 131 134 Total financial services operations debt 2,706 $ 3,431 $ Less: Current portion (805) (945) Net long-term financial services operations debt 1,901 $ 2,486 $ Cash & Cash Equivalents April 30, 2010 October 31, 2009 Manufacturing non-GAAP (Unaudited) 455 $ 1,152 $ * Financial Services non-GAAP (Unaudited) 53 60 Consolidated US GAAP (Audited) 508 $ 1,212 $ Manufacturing Cash & Cash Equivalents non-GAAP (Unaudited) 455 $ 1,152 $ * Manufacturing Marketable Securities non-GAAP (Unaudited) 175 - Manufacturing Cash, Cash Equivalents & Marketable Securities non-GAAP (Unaudited) 630 $ 1,152 $ *Includes cash and cash equivalents from consolidating Blue Diamond Truck and Blue Diamond Parts Unaudited Unaudited 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. |
 51 51 NYSE: NAV SEC Regulation G Three Months Ended April 30th, 2010 ($ millions) Net income (loss) attributable to NIC $30 Add back income taxes ($10) Income before income taxes $20 Less equity income from financial service operations ($16) Income before income taxes and equity income from financial service operations $4 Add back manufacturing interest expense 1 $37 Manufacturing EBIT $41 Add back manufacturing depreciation and amortization 2 $72 Adjusted manufacturing EBITDA $113 1 Includes debt issuance costs/discount amortization 2 Navistar International Corporation (Manufacturing operations with financial services operations on a pre-tax Includes depreciation of equipment leased to others and excludes debt issuance cost/discount amortization |
 52 52 NYSE: NAV SEC Regulation G – Fiscal Year Comparison Future 2009 *Includes net income attributable to non-controlling interests U.S. and Canada Industry 414,500 350,000 ($billions) Sales and revenues, net $ 15 + $ 20 + ($millions) Manufacturing segment profit* $ 1,600 Below the line items Income excluding income tax Income tax expense (298) Net Income attributable to Navistar International Corporation (NIC) Diluted earnings per share ($'s) attributable to NIC $12.31 Weighted average shares outstanding: diluted (millions) Original Target @ 414.5k Industry Revised Target @ 350k Industry $ 1,780 (590) ~ 72.5 $892 ~ 72.5 (500) 1,100 (275) $825 $11.46 1,190 Manufacturing Segment Profit is not in accordance with, or an alternative for, U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our GAAP reporting by identifying items that may not be related to the core manufacturing business. Management often uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance. |
 53 53 NYSE: NAV SEC Regulation G – Quarterly Comparison 2010 Q2 2009 Q2 2010 Six Months 2009 Six Months As Reported With Impacts As Reported With Impacts As Reported With Impacts As Reported With Impacts ($billions) Sales and revenues, net 2.7 $ 2.8 $ 5.6 $ 5.8 $ ($millions) Manufacturing segment profit 149 87 317 494 Below the line items (129) (66) (272) (246) Income (loss) excluding income tax 20 21 45 248 Income tax benefit (expense) 10 (9) 2 (2) Net Income (loss) attributable to Navistar International Corporation 30 $ 12 $ 47 $ 246 $ Diluted earnings (loss) per share ($'s) attributable to Navistar International Corporation 0.42 $ 0.16 $ 0.65 $ 3.44 $ Weighted average shares outstanding: diluted (millions) 72.8 71.3 72.4 71.5 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. |