 3rd Quarter 2010 Earnings Presentation September 8th, 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. |
 4 4 NYSE: NAV Agenda • 3Q financials • Full-year assumptions • Strategic update • Driving shareowner value |
 5 NYSE: NAV Strategy Note: This slide contains non-GAAP information, please see the Reg G in appendix for detailed reconciliation. |
 6 2010 Product Launches MaxxForce ® 7 MaxxForce ® 13 MaxxForce ® DT 6 NYSE: NAV |
 NYSE: NAV 2010 3Q Information: Profitable at all points in the cycle Positioned well for the future Note: This slide contains non-GAAP information, please see the Reg G in appendix for detailed reconciliation. • Improved core business • Strong military shipments – delivered approximately 1,000 MRAPs in 3Q 2010 • MWM engine business – strong South America economy • Financial services $110 $278 $0 $50 $100 $150 $200 $250 $300 3Q09 3Q10 ($0.16) $1.83 -$0.50 $0.00 $0.50 $1.00 $1.50 $2.00 3Q09 3Q10 Notes: * 2008 excludes Impairment ** 2009 excludes Ford and 1-time items *** Assumes attainment of mature global growth by end of calendar year 2013 7 Traditional Industry Volume (Thousands of Units) $1.8B Segment Profit Goal @ 350k units*** Original $1.6B Segment Profit Goal @ 415k units |
 8 NYSE: NAV 13,500 14,400 3,500 6,200 0 5,000 10,000 15,000 20,000 25,000 3Q09 3Q10 Traditional Expansionary 14,600 19,300 22,900 26,100 33,600 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 3Q09 3Q10 All Other U.S. & Canada Ford OEM Sales South America $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 3Q09 3Q10 2010 3Q Information $3,221 63,600 52,900 $2,506 Base Base Military Military N.A. Ford 17,000 20,600 • Improved core business • Strong military shipments – delivered approximately 1,000 MRAPs in 3Q • MWM engine business – strong South America economy • No U.S. and Canada Ford business in quarter |
 9 Medium Truck Great Products – Market Share 52% Market Share 3Q10 Severe Service Truck Heavy Truck FY07 60% FY08 55% FY09 61% July YTD10 59% FY07 36% FY08 36% FY09 35% July YTD10 38% FY07 25% FY08 27% FY09 34% July YTD10 35% FY07 15% FY08 19% FY09 25% July YTD10 25% Class 8 School Bus (U.S. & Canada) Note: Market share based on brand and Severe Service Truck market share excludes military 36% Market Share 3Q10 35% Market Share 3Q10 30% Market Share 3Q10 31% Market Share 3Q10 School Bus & Combined Class 6-8 Market Share – 9 NYSE: NAV 3Q FY08: ; 3Q FY09: ; 3Q FY10: |
 10 NYSE: NAV Industry Dynamics Source: ATA Source: ACT Source: FTR Source: ACT |
 11 NYSE: NAV Full Year 2010 Revenues Full Year 2010 Prior 2010 Guidance Revised 2010 Guidance Key takeaways U.S. and Canada Retail Sales Industry 195,000 to 215,000 190,000 to 195,000 Retail sales growth flattens out Military $2.6 to $2.8B $2.0 to $2.2B Deferring military creates a clear view of 2011: Rolling Chassis, Independent suspension kits, Parts Diluted EPS $2.75 to $3.25 $2.75 to $3.25 Strong finish to FY 2010 •Improved core business - 2010 emissions pricing - N.A. parts margins up 3% - Pure Power Technologies - Logistic partnerships $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Prior Guidance Revised Guidance $13.2 to $13.7B $12.2 to $12.5B |
 NYSE: NAV Assumptions for 4 th Quarter • Military revenue: ~$500M to $600M • Full year market share: – Bus 60%+ – Medium 38%+ – Severe Service 34%+ – Heavy 25% • Product Development – NC ² – 15L – Commercial bus • Product launches – Vesta ™ RV – TerraStar ™ (Class 4/5) • Expect to deliver over 17,000 units in U.S. and Canada • Huntsville Engine Plant – MaxxForce ® 13L production at ~ 90 per day 12 |
 13 13 NYSE: NAV Actions Taken in 2010 That Impact Our Strategy Strategy: Leveraging What We Have and What Others Have Built • Products • Pro Star+ ® • 2010 Emissions • 13L • TerraStar™ • Class A bus • Vesta™ RV • Manufacturing flexibility versus focused facilities • Dealer strategy • Defense sustainability • Global |
 14 14 NYSE: NAV Up to 4.5% Fuel Economy Improvement vs. 2009 ProStar ® Leadership Continues |
 15 15 Product Differentiation – Leadership “Highest in Customer Satisfaction among Vocational Segment Class 8 Trucks” “Highest in Customer Satisfaction with Heavy-Duty Truck Dealer Service” 15 |
 16 Market Share YTD Order Receipts Market Share Full Year 2009 3Q 2010 YTD July 2010 YTD July Full Year 2010 Goal School Bus 61% 52% 59% 46% 60% + Medium 35% 36% 38% 48% 40% + Severe Service 34% 35% 35% 40% 35% + Heavy 25% 30% 25% 27% 25% _ Our Emission Strategy Gives Us a Competitive Advantage 59% Market Share YTD2010 School Bus 38% Market Share YTD2010 35% Market Share YTD2010 Severe Service Truck Heavy Truck 25% Market share YTD2010 Medium Truck Heavy Sleeper – 30% Note: Market share based on brand and Severe Service Truck market share excludes military 16 NYSE: NAV |
 17 2010 U.S. and Canada Heavy Strategy – Maintain 25% Class 8 Heavy share 2010 Strategy •Convert customers to the 13L •Drive customer – pre/post buy 17 NYSE: NAV |
 18 18 NYSE: NAV North America Growth Opportunity Fully vertically integrated “Motorhome of the Future” Class 4/5 Type A School Bus All Electric Vehicle |
 19 19 NYSE: NAV • Moving from focused facilities to flexible manufacturing to maximize logistics cost • School bus: All assembly in Tulsa • Huntsville – ability to produce V8/I6/DT on same line What’s next? • Engineering consolidation Competitive Cost Structure |
 20 20 NYSE: NAV Attracting New Dealers/Quality • Minneapolis – Lee Walquist – Dealer founded in 1927 (Ford/Sterling) – Best-in-Class facilities and people • Boston – Richard Witcher – Premier commercial vehicle distributor for over 20 years with Ford/Sterling – Serving on ATD/NADA boards • Southern Georgia – Jim Stephenson – Founded in 1914 – Nation’s first CAT dealer – Strong Georgia footprint with multiple locations • Philadelphia – Wayne Bromley – Founded in 1916 – 3 rd generation Caterpillar dealership – Strong footprint in Eastern PA, South NJ • Phoenix/Tucson – Bob Cunningham – CEO of $3.4B for-hire carrier with 16,000 trucks – Freightliner Dealer 1998-2005 • Utah/Idaho – Marvin Rush – Operates the largest network of truck dealerships in North America – Began business in Houston in 1965 – Acquired Lake City International – 8 th largest dealer market in North America • Indianapolis – Shelby Howard – Founded in 1992, has grown to 8 stores in 2 states – Award wining dealer (Mack/Volvo) |
 NYSE: NAV 2010 2011 Goal $1.5 to $2.0 Billion Revenue $2.0 to $2.2 Billion Revenue Navistar Defense Revenue 21 |
 Diversification DLA Parts and Service U.K. MoD Canada DND TACOM JPO U.S. and Allies 22 NYSE: NAV |
 23 23 NYSE: NAV Global Growth Mahindra/Navistar and NC 2 • Launched a World Class Plant in Chakan with quality to deliver cabs for the Rest of the World • Great channel - Distribution channel is ramping up and first class • Engine JV is ready to deliver the 7.2L MWM engine for integration in MNAL H&MCV vehicles • 2010 Invest in the future • Select countries that have the largest opportunities • Productions expected in early 2011 for North American strategic strategic alliance alliance |
 Actions Taken in 2010 That Impact Our Strategy Driving Shareowner Value: • Income from Operations • Focus on Cash Flow • Improve Balance Sheet - Managing Legacy Costs - Tax Strategies 24 NYSE: NAV Note: This slide contains non-GAAP information, please see the Reg G in appendix for detailed reconciliation. |
 25 25 NYSE: NAV Manufacturing Cash Update ($ millions) $630 Adjusted manufacturing EBITDA $235 Change in net working capital 2 $103 Capital expenditures ($83) Other cash flows ($128) 1 $757 Forecasted October 31, 2010 ending manufacturing cash and marketable securities $1,000 - $1,200 1 Includes cash from the consolidation of minority interests 2 NWC = A/R, Inventory, Other Current Assets, A/P & Other Current Liabilities April 30, 2010 ending manufacturing cash and marketable securities 1 July 31, 2010 ending manufacturing cash and marketable securities Note: This slide contains non-GAAP information, please see the Reg G in appendix for detailed reconciliation. |
 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 • Alliance with GE Capital • Retail financing in the U.S. • Wholesale vehicle and parts financing, and retail financing in Canada 26 NYSE: NAV |
 27 NYSE: NAV Retail Loan Originations Program Origination Percent • Transitioning is proceeding - Programs - Rate 0% 11% 37% 63% 100% 100% 100% 100% 89% 63% 37% 0% 20% 40% 60% 80% 100% Apr May Jun Jul Aug-e Sep-e Oct-e |
 28 28 NYSE: NAV Balance Sheet Focus on Shareholder Value • Health Care - Actively working to contain health care cost, lower costs vs 2009 - Med Part D Participation - Continued dialogue around long term solution • Pension funding - Pension Relief Act allows Navistar to defer $300-400 million of funding between 2010-2014 • Working Capital - Working through 2010 product transition - Taking advantage of low demand to improve processes - Global Strategy will present new challenges, value of partners • Taxes – Leveraging Tax Strategies, - 2010 tax rate ~ 10% - Long Term Outlook - NOL will be consumed - Value of Deferred Tax Assets will have positive impact Balance Sheet |
 29 29 NYSE: NAV * U.S. & Canada Class 6-8 & School Bus FY 2010 Guidance: $2.75 - $3.25 |
 30 30 NYSE: NAV Strategy Positions Navistar for Industry Recovery 2010 2011 2012 2013+ N. A. Truck Actions in place Full value of 2010 emission strategy Industry returns Continuous improvement Expansionary U.S. Investment Marginally profitable Industry returns Continuous improvement Expansionary Global Investment Break even Profitable Strong Military Another strong year Clear view of $1.5 to $2.0B Clear view of $1.5 to $2.0B with possible next level of break thru Diesel Engines Life without Ford Growth with truck Pure Power technologies OEM Opportunities Parts Year over year 3% commercial margin percentage increase Realize benefits of Truck and Engine Strategy Parts Segment: Double digit top line growth with excellent return on assets |
 NYSE: NAV Results Will Flow With Recovery 31 Notes: * 2008 excludes Impairment ** 2009 excludes Ford and 1-time items *** Assumes attainment of mature global growth by end of calendar year 2013 Performed at high end or above range for the last several years NYSE: NAV 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. |
 32 NYSE: NAV Appendix |
 33 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 July YTD Bus (School) 57% 57% 48% 58% 55% 56% 60% 61% 66% 61% 60% 63% 52% NA 59% Medium (Class 6-7) 34% 35% 39% 35% 36% 30% 39% 33% 39% 35% 33% 44% 36% NA 38% Heavy (LH & RH) 16% 15% 19% 25% 19% 24% 23% 29% 24% 25% 23% 22% 30% NA 25% Severe Service 28% 26% 26% 29% 27% 32% 36% 33% 33% 34% 34% 35% 35% NA 35% Combined Class 8 20% 19% 21% 26% 22% 26% 27% 30% 27% 28% 26% 26% 31% NA 28% Combined Market Share 27% 27% 28% 32% 29% 30% 35% 36% 36% 34% 31% 35% 34% NA 33% 2009 2010 Market Share — U.S. & Canada School Bus and Class 6-8 2008 33 NYSE: NAV |
 NYSE: NAV Truck Chargeouts Note: Information shown below is based on Navistar’s fiscal year 34 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 YTD July 2010 BUS 3,100 3,100 2,300 NA 8,500 MEDIUM 3,900 5,300 3,900 NA 13,100 HEAVY 5,200 4,600 6,400 NA 16,200 SEVERE 3,100 3,000 1,800 NA 7,900 TOTAL 15,300 16,000 14,400 NA 45,700 MILITARY (U.S. & Foreign) 900 900 1,600 NA 3,400 EXPANSIONARY 3,900 4,500 4,600 NA 13,000 WORLD WIDE TRUCK 20,100 21,400 20,600 NA 62,100 |
 35 35 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 July YTD OEM sales - South America 30,700 34,600 33,600 NA 98,900 Ford sales - U.S. and Canada 24,700 200 - NA 24,900 Other OEM sales 2,000 3,600 3,700 NA 9,300 Intercompany sales 16,400 17,700 15,600 NA 49,700 Total Shipments 73,800 56,100 52,900 NA 182,800 2010 2008 2007 2009 |
 36 36 NYSE: NAV Order Receipts – U.S. & Canada Percentage Percentage 2010 2009 Change Change 2010 2009 Change Change 1,100 3,200 (2,100) (66) 4,600 9,200 (4,600) (50) 3,100 2,700 400 15 12,500 8,000 4,500 56 Class 8 heavy trucks 3,000 3,800 (800) (21) 16,100 12,900 3,200 25 Class 8 severe service trucks 1,700 2,500 (800) (32) 7,800 7,400 400 5 8,900 12,200 (3,300) (27) 41,000 37,500 3,500 9 4,700 6,300 (1,600) (25) 23,900 20,300 3,600 18 Total "Traditional" Markets Combined Class 8 (Heavy and Severe Service) "Traditional" Markets School buses Class 6 and 7 medium trucks Nine Months Ended July 31, Order Receipts: U.S. & Canada (Units) Three Months Ended July 31, The three and nine months ended July 31, 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. |
 37 37 NYSE: NAV NFC Liquidity Remains Strong Retail Notes Bank Facility • NFC stabilized liquidity and improved earnings profile in 2010 - Significant improvement in retail portfolio performance - As of July 31, 2010, NFC had total available undrawn committed funding of more than $750M • Completed the sale of $919M of asset-backed retail notes in a 144-A transaction - Improved net interest spread and enhanced liquidity • Renewed $500M conduit-based facility to support dealer inventory funding • Formed strategic alliance with GE Capital for retail program in the U.S. – NFC will need less liquidity / capital to support new retail sales – NFC’s liquidity will also be enhanced as existing notes pay off • $500M revolving warehouse (TRIP) paid off in June 2010 • New $919M 144-A transaction in Q3 – 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 July 31, 2010 – ~$1.1B funding facility (NFSC) – $699M available • NFSC terms – Bank conduit portion renewed; matures August 2011 – Public portions mature January 2012 and October 2012 On balance sheet Dealer Floor Plan |
 38 38 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. |
 39 39 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 July 31, 2010? A: Of our 278 primary NAFTA dealers, we have ownership interest in 13 DealCor dealers as of July 31, 2010. We expect to further reduce our number of Dealcor dealers before October 31, 2010. Q4: When is the next refinancing due at NFC? A: Our TRAC facility, which funds fleets and national accounts, matures in October of 2010. We are currently in discussion to effectively renew this facility. Q5: 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. |
 40 40 NYSE: NAV Frequently Asked Questions Q6: 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. Q7: 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. Q8: 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. Q9: How is your NFC portfolio performing? A: NFC portfolio performance is improving, which has resulted in a lower provision for losses. Repossessions, past due accounts and losses peaked in 2008 and have continued to show improvement, with considerable improvement lately. Q10: What is your total amount of capacity at NFC? A: Total availability in our funding facilities is more than $750 million as of July 31, 2010. Q11: What is the status of the retail financing alliance with GE Capital in the United States? A: Navistar Capital – the alliance we formed with GE Capital to support the sale of Navistar products – is off to a great start and progressing consistent with expectations. |
 41 41 NYSE: NAV Frequently Asked Questions Q12: Why have NFC’s wholesale receivables and debt moved onto the balance sheet? A: NFC amended its wholesale securitization trust to allow NFC some control over receivables transferred to the trust, which is a variable interest entity of which NFC is the primary beneficiary. Under current accounting rules, the amendment requires NFC to consolidate the assets and liabilities of the wholesale securitization trust onto the balance sheet. Q13: How does the latest Ground Combat Vehicle (GCV) program announcement affect Navistar? A: Navistar was not originally part of the GCV program. Recently, the Army announced it would cancel the contract solicitation and issue a revised Request for Proposal (RFP). Navistar will evaluate potential opportunities once the RFP has been issued. Q14: What is the current Joint Light Tactical Vehicle (JLTV) program status? A: As part of the Technology Development (TD) phase, Navistar and BAE delivered right-hand drive prototypes to Australia on June 21 following delivery of prototypes to the U.S. in May. Q15: 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. Navistar has produced 1,130 MaxxPro Dash units with DXM independent suspension and will retrofit another 1,222 Dash units in theater with the capability. |
 42 42 NYSE: NAV Frequently Asked Questions 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. Q17: 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. Q18: 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. |
 43 43 NYSE: NAV Frequently Asked Questions Q19: 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 would release its valuation allowances. Based on evidence to date, we believe it is reasonably possible that the Company may release all or a portion of its U.S. valuation allowance in the next twelve months. When the full valuation allowance is released, $72 million would favorably impact shareowner’s equity and the balance would favorably impact net income. |
 44 44 NYSE: NAV Frequently Asked Questions Q20: How has recent legislation affected Navistar? A: The Worker, Homeownership, and Business Assistance Act of 2009 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. Other recent international legislation would not have a material impact on our financial statements in the near term, due to the fact that we currently have a full valuation allowance against our U.S. deferred tax assets and are still utilizing U.S. net operating losses. We continually monitor legislative changes to address adverse tax implications that may occur in the future. Q21: 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. Q22: What contributed to the $29 million increase in income tax expense in Q3 over Q2? A: During Q3 the company’s tax expense was primarily driven by solid worldwide earnings. There were no material discrete tax adjustments during the quarter. |
 NYSE: NAV Frequently Asked Questions 45 Q23: 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. Q24: 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 $165 million. In 2009, pension and OPEB GAAP expense was $233 million. |
 NYSE: NAV Frequently Asked Questions Q25: What are your expected 2010 and beyond pension funding requirements? A: Current forecasts indicate that we may need to contribute approximately $113 million in 2010. We believe the recently enacted pension funding relief legislation Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 will materially reduce the amount of required cash contributions into our major US defined benefit plans over the next five years. Although certain specific regulations related to funding relief have not yet been defined, we anticipate that minimum required cash contributions will be reduced by a minimum of $60 million per year compared with our estimate of minimum required cash contributions before funding relief. In total, between 2010 and 2014, we anticipate the cumulative impact will be a reduction in cash contributions of between $300 and $400 million. Q26: 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 September 7, 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 2010 Guidance Truck Industry Units 190,000 to 195,000 Revenue ($ Billions) 12.2 to 12.5 ($ Millions (excluding EPS)) Mfg. Segment Profit 750 to 800 Below the line items (525) to (534) Profit Excluding Tax 225 to 266 Net Income attributable to NIC 202 to 238 Tax Rate 10% to 11% Diluted EPS attributable to NIC $2.75 to $3.25 # of shares ~73.3M Guidance 48 |
 49 49 NYSE: NAV ($ in millions) 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 ($34) Dividends from NFC $400 $15 $0 $0 From Investing / (Cap Ex) ($200) ($220) ($284) ($255) From Financing / (Debt Pay Down) ($480) ($133) $56 ($102) Exchange Rate Effect $19 ($21) $9 ($4) Net Cash Flow ($492) $55 $295 ($395) 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 July 31, 2010 2 $757 1 Cash = Cash, Cash Equivalents & Marketable Securities 2 Includes cash from the consolidation of minority interests Note: This slide contains non-GAAP information, please see the Reg G in appendix for detailed reconciliation |
 NYSE: NAV SEC Regulation G DEBT July 31, 2010 October 31, 2009 (in millions) Manufacturing operations 8.25% Senior Notes, due 2021, net of unamortized discount of $35 and $37 million at the respective dates 965 $ 963 $ 3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $99 and $114 at the respective dates 471 456 Debt of majority owned dealership 67 148 Financing arrangements and capital lease obligations 227 271 Other 18 23 Total manufacturing operations debt 1,748 $ 1,861 $ Less: Current portion (145) (191) Net long-term manufacturing operations debt 1,603 $ 1,670 $ Financial services operations Asset-backed debt issued by consolidated SPEs, at variable rates, due serially through 2018 1,828 $ 1,227 $ Bank revolvers, at fixed and variable rates, due dates from 2010 through 2016 1,022 1,518 Revolving retail warehouse facility, at variable rates, due 2010 - 500 Commercial Paper, at variable rates, due serially through 2011 63 52 Borrowing secured by operating and finance leases, at various rate, due serially through 2017 125 134 Total financial services operations debt 3,038 $ 3,431 $ Less: Current portion (516) (945) Net long-term financial services operations debt 2,522 $ 2,486 $ Cash & Cash Equivalents July 31, 2010 October 31, 2009 Manufacturing non-GAAP (Unaudited) 476 $ 1,152 $ Financial Services non-GAAP (Unaudited) 39 60 Consolidated US GAAP (Audited) 515 $ 1,212 $ Manufacturing Cash & Cash Equivalents non-GAAP (Unaudited) 476 $ 1,152 $ Manufacturing Marketable Securities non-GAAP (Unaudited) 281 - Manufacturing Cash, Cash Equivalents & Marketable Securities non-GAAP (Unaudited) 757 $ 1,152 $ Unaudited Unaudited 50 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 July 31, 2010 ($ millions) Net income (loss) attributable to NIC $137 Add back income taxes $19 Income before income taxes $156 Less equity income from financial service operations ($33) Income before income taxes and equity income from financial service operations $123 Add back manufacturing interest expense $40 Manufacturing EBIT $163 $72 Adjusted manufacturing EBITDA $235 1 Includes depreciation of equipment leased to others and excludes debt issuance cost/discount amortization Add back manufacturing depreciation and amortization 1 |
 52 52 NYSE: NAV SEC Regulation G – Fiscal Year Comparison Future 2009 Manufacturing Segment Profit is not in accordance with, or an alternative for, U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our GAAP reporting by identifying items that may not be related to the core manufacturing business. Management often uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance. U.S. and Canada Industry 414,500 350,000 ($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 $11.46 1,190 |
 53 53 NYSE: NAV SEC Regulation G – Fiscal Year Comparison This presentation is not in accordance with, or an alternative for, U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our GAAP reporting by identifying items that may not be related to the core manufacturing business. Management often uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance. 2009 2008 Non GAAP Non GAAP As Reported Non GAAP Non GAAP As Reported Without Impacts Impacts With Impacts Without Impacts Impacts With Impacts U.S. and Canada Industry 181,800 244,100 ($billions) Sales and revenues, net 11.6 $ 14.7 $ ($millions) Manufacturing segment profit (excluding items listed below) 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) 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 |
 NYSE: NAV SEC Regulation G – Quarterly Comparison 54 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. Note: In the third quarter 2010, related to the ratification of a new collective bargaining agreement at ICC, we incurred $10 million of restructuring benefits offset by $6 million of charges in costs of products sold for supplemental unemployment and healthcare benefits. 2010 Q3 2009 Q3 2010 Nine Months 2009 Nine Months As Reported As Reported As Reported As Reported Sales and revenues, net 3.2 $ 2.5 $ 8.8 $ 8.3 $ ($ millions) Manufacturing segment profit 278 110 595 604 Below the line items (122) (92) (394) (338) Income (loss) excluding income tax 156 18 201 266 Income tax benefit (expense) (19) (30) (17) (32) Net Income (loss) attributable to navistar International Corporation 137 $ (12) $ 184 $ 234 $ Diluted earnings (loss) per share ($'s) attributable to Navistar International Corporation 1.84 $ (0.16) $ 2.58 $ 3.27 $ Weighted average shares outstanding: diluted (millions) 74.3 70.8 73.1 71.7 |