Navistar International (NAV) 8-K Navistar Reports Fourth Quarter Results

NYSE: NAV

4

TH

QUARTER 2012 EARNINGS

PRESENTATION

December 19, 2012

Exhibit 99.2

2

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Safe Harbor

Statement

Information provided and statements contained in this report 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 report and the Company assumes no obligation to update the information included in

this report. 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 the risk factors set forth in our filings with the Securities and Exchange Commission,

including

our

annual

report

on

Form

10-K

for

the

fiscal

year

ended

October

31,

2012.

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

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

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

items

that

may

not

be

related

to

the

core manufacturing business or underlying results. Management often uses this

information to assess and measure the underlying 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.

The

non-GAAP numbers are reconciled to the most

appropriate GAAP number in the appendix of this presentation.

4

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Agenda

•

2012 Progress on Key Areas of Focus

Lewis Campbell

•

Warranty

Troy Clarke

•

2012 4

th

Quarter and Full Year Results

A. J. Cederoth

•

Drive to Deliver

Troy Clarke

•

2013 Key Areas of Focus and Near-Term

Priorities

Lewis Campbell

NYSE: NAV

Lewis Campbell, Executive Chairman and CEO

2012 PROGRESS ON KEY

AREAS OF FOCUS

6

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

•

Cash

•

ISX launch on schedule

•

Valuation allowance

•

Quality

•

ROIC actions

4

th

Quarter Actions

7

4Q 2012 Earnings – 12/19/2012

•

•

Quality

Quality

•

•

Cost

Cost

•

•

Sense of Urgency

Sense of Urgency

•

•

Great Products

Great Products

•

•

Customer Satisfaction

Customer Satisfaction

•

•

People

People

Near-Term Priorities

Drive to Deliver

Drive to Deliver

Deliver Our

2013 Plans

Hit Our

Launches

Improve

Quality

NYSE: NAV

Troy Clarke, President & COO

WARRANTY

9

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Q4 FY10

Q4 FY11

Q4 FY12*

Q4 FY13*

Quarterly Average

HD Engine # of repairs for the first 12 months

Q4 FY10

Q4 FY11

Q4 FY12*

Q4 FY13*

Quarterly Average

HD Vehicle # of repairs for the first 12 months

•

NOT more issues

•

Fixes are more expensive

than anticipated

•

Data from larger populations

of vehicles in service

pointed to an unresolved

issue

•

More effort required to

ensure engine robustness

–

Field campaign in process

Warranty

Overall quality…

Overall quality…

continues to improve

Primary driver for increase in

Primary driver for increase in

warranty

warranty

* Forecasted

10

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Warranty

•

New calibrations improved performance and uptime

•

Again not more issues; but costlier hardware fixes

•

Once fixes have been identified and solutions validated,

field campaigns may be required

•

Customer satisfaction improving –

this is our

TOP PRIORITY

Engine launches have been a challenge across industry

Engine launches have been a challenge across industry

Bottom Line –

Trucks and Engines are getting better,

we have fixed a lot of issues

NYSE: NAV

A. J. Cederoth, Executive Vice President & CFO

2012 4

TH

QUARTER AND FULL

YEAR  RESULTS

12

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Pre-Existing Warranty

Expense Summary

•

$149M for adjustments to Pre-

Existing Warranties in Q4 and

$404M in 2012

–

Field campaigns

–

True-up for actual expenses

•

Cost/repair > estimates

Warranty

Cash Summary

•

Expect cash to be greater than

expense in 2013

•

Impact of cash will be spread over

several years and is factored into

our forecast

$(51)

$(895)

$(488)

$(413)

$(416)

$(322)

$(310)

$(404)

$(79)

($1,000)

($900)

($800)

($700)

($500)

($400)

($300)

($200)

($100)

$0

2010

2011

2012

Expense

Cash

($600)

Warranty Expense vs. Cash

13

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

•

This decision is complex and based on weighting both

the

positive

and

negative

evidence

–

heavily

relying

upon the negative historical performance, not based on

our future outlook of the business

•

$2.0 billion reserve recorded as tax expense*

•

Non-cash accounting charge

•

Does not impair ability to use tax benefits in future

•

Strategy remains on track

Tax Valuation

* Excludes reversal of $233M in Q1-Q3 for domestic tax benefits.

14

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

4

th

Quarter Actions Improve Future Profitability

Actual 4Q 2012

Estimated 2013

Estimated

2014

Run Rate

($ million)

P&L

Impact

Cash

Impact

P&L

Impact

Cash

Impact

P&L

Impact

Functional Cost/

Restructuring

($73)

($16)

$175

$118

$175+

Garland Assembly

Plant

($4)

$-

($10-$25)

$-

$35

Rationalized

Investments

($31)

($2)

TBD

Positive

Positive

15

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

2012 Manufacturing Cash Update

Mid-point of FY guidance

(as shown on 9/6/2012)

$950

Equity Issuance –

net of fees and expenses

$192

NAV Defense Receivable

$175

Commercial Truck Net Working Capital Improvement

$188

2012 Year End Manufacturing Cash Balance*

$1,505

$ in millions

* Year end cash balance includes marketable securities.

Note:

This slide contains non-GAAP information; please see the REG G in

appendix for a detailed reconciliation. 

Fiscal Year End Balances*

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

16

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

2012 4

th

Quarter and Full Year Results

* Attributable to Navistar International Corporation

2012 Q4

GAAP

FY 2012

GAAP

Revenue (Billions)

$3.3

$12.9

Manufacturing Segment Profit (Loss)

(Millions)

$(371)

$(642)

Profit (Loss)  Before Tax (Millions)

$(566)

$(1,182)

Net Profit (Loss) * (Millions)

$(2,769)

$(3,010)

Diluted Profit (Loss)  Per Share*

$(40.13)

$(43.56)

17

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Manufacturing Segment

•

Truck

–

Material costs increased by $91M

–

Engineering and SG&A increased

by $76M

•

Engine -

profitability declined due:

–

Warranty

–

MWM business lower by $160M

•

Parts

–

Lower Volume, higher material cost

–

Postive pricing

Manufacturing Segment Profit & Corporate

Corporate & Eliminations

•

Corporate spending was lower year over

year

•

Postretirement cost higher

•

Q4 Restructuring

Q4

GAAP

Full Year

GAAP

($ in millions)

2012

2011

2012

2011

Truck

$(160)

$287

$(320)

$336

Engine

$(287)

$58

$(562)

$84

Parts

$76

$87

$240

$287

Total Manufacturing Segment

Profit (Loss)

$(371)

$432

$(642)

$707

Corporate & Eliminations

$(224)

$(204)

$(679)

$(571)

18

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Navistar Financial Corporation

•

FY 2012 segment profit of $91 million vs. $129 million in

FY 2011

•

Wholesale financing renewal –

Completed

•

$959 million of available capacity

•

Debt/Equity Leverage: 3:1

Evaluating dividends

19

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

•

Results below expectations; redirecting strategy

–

Clean engine strategy

•

Product quality is improving

–

Supporting customers and dealers

•

Liquidity is strong -

$1.5 billion

–

Raised capital to support product transition

2012 Recap

20

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

$533

$582

$668

$762

$837

$-

$200

$400

$600

$800

$1,000

$1,200

2008

2009

2010

2011

2012

2013 Forecast

2013 Q1 Manufacturing Cash Update

2012 Year End Manufacturing Cash Balance*

$1,505

Corporate EBITDA

$(50) -

$50

Maintenance CapEx/Cash Interest/Pension/OPEB Funding

$(215)

Change in Net Working Capital –

Lower production

volumes

$(200)

Debt Payments

$(40)

Restructuring Cash

$(50)

2013 Q1 Manufacturing Cash Balance*

$950 -

$1,050

$ in millions

* Cash balance includes marketable securities.

Note:

This slide contains non-GAAP information; please see the REG G in

appendix for a detailed reconciliation. 

Q1 Ending Balances*

21

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Summary

•

Improving market share

•

Cost Reductions

2014

•

Class

8

industry

–

215K

Quality

Sense of Urgency

Great Products

Customer Satisfaction

People

Cost

NYSE: NAV

Troy Clarke, President & COO

DRIVE TO DELIVER

23

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

A Leader in Several Commercial Vehicle Segments

U.S. and Canada School Bus & Class 6-8:  23%

Market Share

FY2012: ~47%

Note: Based on market share position determined by brand

Market Share

FY2012: ~33%

Market Share

FY2012: ~30%

Market Share

FY2012: ~15%

Market Share

Trailing Six

Months: ~47%

Market Share

Trailing Six

Months: ~30%

Market Share

Trailing Six

Months: ~35%

Market Share

Trailing Six

Months: ~14%

24

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

•

Clear P&L accountability across our business units

•

Strong emphasis on functional excellence

•

Organizational changes to align senior leadership for clear

accountability

–

Material procurement

–

Product launches

–

Quality

–

Manufacturing

•

Functional excellence

–

Leader of North American truck and parts also heads up sales and

marketing

–

Leader of global initiatives is responsible for quality

–

Chief procurement officer is responsible for driving our Lean initiatives

–

Head of Defense business is also responsible for Manufacturing

–

Product development is integrated with product planning

Drive To Deliver

ProStar with 15L ISX

FY2012

FY2013

Sep

Oct

Nov

Dec

Jan

Feb

Mar

“We are in Production”

Ahead of Schedule

Hit Our Launches –

Critical Product Introduction Milestones

25

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Test Units

11/12

1

production

build

unit

12/11

Volume

production

12/14

OK to Ship

st

26

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Hit Our Launches –

Critical Product Introduction Milestones

ProStar

with

MaxxForce

13L

SCR

13L with SCR on Track

•

5 million mile test program

•

Same proven SCR after-treatment system used

with ISX

•

Minimal engine hardware changes

New program launch process

•

Use of advanced engineering processes making

milestones possible

•

New quality system improving first time quality

FY2012

FY2013

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

MaxxForce 13L

MaxxForce 13L

with SCR

with SCR

Test Units

1/10

Submit for

EPA

certification

3/05

Start Lead

Unit

Production

4/30

OK

To Ship

27

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Driving Financial Improvement

•

Working capital

•

SG&A

–

VSP/RIF

•

Product

development

•

Fixed and variable

manufacturing

•

Garland closure

Structural Cost Actions

All actions to achieve above

goal are complete;

Additional savings identified

•

Discontinue non-related

engineering programs

•

Discontinue MaxxForce 15L

•

Sale of equity interest in 

Mahindra JV

Capable partner

Capital focus needs to be

allocated to business

opportunities with more

immediate returns

•

Focus on the core North

America Truck, Engine & Parts

businesses

Return on Invested Capital

(ROIC)

Drive to Deliver Summary

•

A lot has been accomplished this past

quarter

Quality -

customer satisfaction

Functional excellence

Launches

ROIC

Structural cost actions

•

Momentum will be evident as 2013

progresses

•

Stay tuned next quarter for updates on

the “Drive to Deliver”

accomplishments

28

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

NYSE: NAV

Lewis Campbell, Executive Chairman and CEO

2013 KEY AREAS OF FOCUS &

NEAR-TERM PRIORITIES

•

•

Quality

Quality

•

•

Cost

Cost

•

•

Sense of Urgency

Sense of Urgency

•

•

Great Products

Great Products

•

•

Customer Satisfaction

Customer Satisfaction

•

•

People

People

Near-Term Priorities

30

Drive to Deliver

Drive to Deliver

Improve

Quality

Hit Our

Launches

Deliver Our

2013 Plans

30

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

31

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Key Metrics Focused on Creating Shareholder

Value and Incentivizing/Retaining Employees

Note:  Additional detail will be provided in our 2013 Proxy.  Incentive goals are subject to shareholder approval.

2013 Incentive Goals:

•

Achieve our operating plans

•

Improve our profits and cash flow

•

Hit our launch dates with appropriate quality

metrics

•

Reduce our SG&A

•

Improve our ROIC

9/6 –

Announced

ROIC

focused

strategy

11/15 –

First

saleable ProStar

with ISX to roll

off line

Drive to Deliver Progress

8/27 –

Announced U.S.

Voluntary Separation

Package results and

need for Reduction In

Force as part of goal to

reduce costs by $150M-

$175M. 10/31 completion

date

Launch ProStar

with MxF13 SCR

in April

12/11 –

Regular

production of

ProStar with

ISX engines

10/23 –

Cummins

contract

finalized

9/6 –

Realigned

Senior Leadership –

weekly meetings.  

Established daily cash

management report

and manufacturing

excellence system

August

September

October

November

December

January

April

8/30 –

EPA

issued final

ruling

10/8 –

Company

adds two new

board

members: 

Vincent J.

Intrieri and

Mark H.

Rachesky

August

September

October

November

December

January

April

August

September

October

November

December

January

April

10/24 –

ROIC

update -

elimination of

MxF15

Equity offering;

confirmed cash

guidance

10/27 –

Board approves

annual incentive plans

that tie to increasing

shareholder value

10/16 –

Board approves

2013 operating plan and

addition of  John C. Pope

to BOD

10/30 –

Announced closure

of Garland facility

10/26 –

Brazil

restructuring

complete;

approx. 700

jobs

eliminated

8/27 –

Lewis

Campbell named

Executive

Chairman and CEO

12/10 –

Company

adds new

board

member:  

Samuel J.

Merksamer

12/18 –

Announced

intent to sell

India equity to

Mahindra

9/6 –

3Q

Earnings

call

12/19 –

4Q

Earnings

call

12/14 –

“OK to

ship”-

five days

ahead of

schedule

32

NYSE: NAV

4Q 2012 Earnings –

12/19/2012

Summary

2014

33

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Quality

Cost

Sense of Urgency

Great Products

Customer Satisfaction

People

Improve

Quality

Hit Our

Launches

Deliver Our

2013 Plans

Drive to Deliver

Ample liquidity to

manage through this

transitional year

2014

Summary

34

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Quality

Cost

Sense of Urgency

Great Products

Customer Satisfaction

People

Questions?

35

NYSE: NAV

4Q

2012

Earnings

–

12/19/2012

NYSE: NAV

APPENDIX

37

NYSE: NAV

Navistar Financial Corporation

•

Increased liquidity

Total U.S. availability of $959M as of October 31, 2012

Consolidated retail securitizations, lower fixed borrowing rate

•

Variable funding facility for dealer floor plan increased to $750M, 

$450M available as of October 31, 2012

•

Bank facility availability of $460M as of October 31, 2012

Retail Notes

Bank Facility

•

$840M facility refinanced in

December 2011, maturity

extended from 2012 to 2016

–

Funding for retail notes,

wholesale notes, retail

accounts, and dealer open

accounts

•

On balance sheet

•

NFSC wholesale trust

–

$974M funding facility 

–

Variable portion matures

August 2013

–

Public portion matures

October 2013

•

On balance sheet

•

Broader product offering

•

Enhanced ability to support

large fleets

•

Better access to less

expensive capital

4Q 2012 Earnings – 12/19/2012

Dealer Floor Plan 

Q4 and Full Year Operational Results

Consolidated Revenues

($ in millions)

Yearly and Quarterly Truck Chargeouts

Yearly and Quarterly Engine Shipments

Military Revenues

($ in millions)

NYSE: NAV

38

4Q 2012 Earnings – 12/19/2012

Supplemental Information –

Truck

Worldwide Truck Chargeouts

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Actual

Actual

Actual

Actual

Q1

Q2

Q3

Q4

Traditional

Expansionary

Towables

4Q 2012 Earnings – 12/19/2012

39

NYSE: NAV

We define our “traditional” markets to include U.S. and Canada School bus and Class 6 through 8 medium and heavy truck. We classify militarized

commercial vehicles sold to the U.S. and Canadian militaries as Class 8 severe service within our “traditional” markets. Our “traditional” markets include

CAT-branded units sold to Caterpillar under our North America supply agreement.

40

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Market Share –

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

We define our “traditional” markets to include U.S. and Canada School bus and Class 6 through 8 medium and heavy truck. We classify militarized

commercial vehicles sold to the U.S. and Canadian militaries as Class 8 severe service within our “traditional” markets.  Beginning in 2011, our competitors

are reporting certain RV and commercial bus chassis units consistently with how we report these units. Our “traditional” markets include CAT-branded units

sold to Caterpillar under our North America supply agreement.

Traditional Market Share

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Q3

Q4

Full Year

School buses

60%

63%

53%

61%

59%

49%

45%

47%

53%

49%

48%

48%

47%

47%

47%

Class 6 and 7 medium trucks

33%

44%

36%

36%

38%

36%

36%

46%

44%

41%

27%

36%

36%

34%

33%

Class 8 heavy trucks

23%

22%

30%

20%

24%

17%

16%

17%

18%

17%

17%

15%

15%

13%

15%

Class 8 severe service trucks

40%

41%

38%

40%

40%

33%

32%

36%

37%

35%

31%

30%

30%

30%

30%

Combined Class 8

28%

28%

32%

25%

28%

21%

19%

21%

22%

21%

19%

18%

18%

17%

18%

Total Traditional Market Share

33%

35%

35%

32%

34%

27%

26%

29%

29%

28%

22%

24%

24%

22%

23%

2010

2011

2012

Market Share

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

41

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Worldwide Truck Chargeouts

We define our “traditional”

markets

to include U.S. and Canada School

bus and Class 6 through 8 medium

and heavy truck. We classify

militarized commercial vehicles

sold to the U.S. and Canadian

militaries as Class 8 severe service

within our “traditional”

markets. Our

“traditional”

markets include CAT-

branded units sold to Caterpillar

under our North America supply

agreement.

FISCAL YEAR 2010

Q1

Q2

Q3

Q4

FULL YEAR

BUS

3,100

3,000

2,400

3,900

12,400

MEDIUM

3,900

5,300

3,900

5,400

18,500

HEAVY

5,200

4,600

6,400

5,400

21,600

SEVERE

3,900

3,800

2,200

4,100

14,000

TOTAL

16,100

16,700

14,900

18,800

66,500

NON-TRADITIONAL MILITARY

100

200

1,000

100

1,400

EXPANSIONARY

3,900

4,500

4,700

6,000

19,100

WORLDWIDE TRUCK

20,100

21,400

20,600

24,900

87,000

FISCAL YEAR 2011

Q1

Q2

Q3

Q4

FULL YEAR

BUS

2,100

2,000

2,200

2,900

9,200

MEDIUM

4,600

7,200

7,400

7,900

27,100

HEAVY

4,700

5,200

6,800

9,000

25,700

SEVERE

2,700

3,200

3,700

3,700

13,300

TOTAL

14,100

17,600

20,100

23,500

75,300

NON-TRADITIONAL MILITARY

100

400

200

700

1,400

EXPANSIONARY

5,300

7,600

8,600

10,200

31,700

WORLDWIDE TRUCK

19,500

25,600

28,900

34,400

108,400

FISCAL YEAR 2012

Q1

Q2

Q3

Q4

FULL YEAR

BUS

1,700

2,600

2,900

2,500

9,700

MEDIUM

4,300

7,100

5,800

4,700

21,900

HEAVY

8,000

7,200

6,300

5,600

27,100

SEVERE

3,300

3,600

3,600

3,100

13,600

TOTAL

17,300

20,500

18,600

15,900

72,300

NON-TRADITIONAL MILITARY

200

400

500

500

1,600

EXPANSIONARY

7,400

7,500

8,000

8,300

31,200

WORLDWIDE TRUCK

24,900

28,400

27,100

24,700

105,100

42

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Worldwide Engine Shipments

Q1

Q2

Q3

Q4

Full Year

OEM sales - South America

30,700

34,600

33,600

33,900

132,800

Ford sales - U.S. and Canada

24,700

200

-

-

24,900

Other OEM sales

2,000

3,600

3,700

4,900

14,200

Intercompany sales

16,400

17,700

15,600

18,800

68,500

Total Shipments

73,800

56,100

52,900

57,600

240,400

Q1

Q2

Q3

Q4

Full Year

OEM sales - South America

27,200

37,100

38,200

36,100

138,600

Other OEM sales

4,500

4,400

3,700

3,600

16,200

Intercompany sales

17,300

23,500

22,300

25,700

88,800

Total Shipments

49,000

65,000

64,200

65,400

243,600

Q1

Q2

Q3

Q4

Full Year

OEM sales - South America

24,100

25,300

28,600

28,700

106,700

Other OEM sales

2,200

2,000

3,000

2,900

10,100

Intercompany sales

21,600

23,400

20,600

17,500

83,100

Total Shipments

47,900

50,700

52,200

49,100

199,900

World Wide Engine Shipments 

2010

2011

2012

43

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Order Receipts –

U.S. & Canada

We

define

our

“traditional”

markets

to

include

U.S.

and

Canada

School

bus

and

Class

6

through

8

medium

and

heavy

truck.

We

classify

militarized

commercial

vehicles

sold

to

the

U.S.

and

Canadian

militaries

as

Class

8

severe

service

within

our

“traditional”

markets.

Our

“traditional”

markets

include

CAT-branded

units

sold

to

Caterpillar

under

our

North

America

supply

agreement.

Percentage

Percentage

2012

2011

Change

Change

2012

2011

Change

Change

3,100

2,300

800

35%

10,900

8,600

2,300

27%

4,600

6,800

(2,200)

-32%

20,300

28,000

(7,700)

-28%

Class 8 heavy trucks

3,800

6,400

(2,600)

-41%

22,500

29,600

(7,100)

-24%

Class 8 severe service trucks

2,400

3,100

(700)

-23%

12,500

13,100

(600)

-5%

13,900

18,600

(4,700)

-25%

66,200

79,300

(13,100)

-17%

6,200

9,500

(3,300)

-35%

35,000

42,700

(7,700)

-18%

Twelve

Months

Ended

October 31,

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

Three Months Ended

October 31,

Total "Traditional" Markets

Combined Class 8 (Heavy and Severe Service)

"Traditional" Markets

School buses

Class 6 and 7 medium trucks

44

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

U.S. and Canada Dealer Stock Inventory*

*Includes U.S. and Canada Class 4-8 and school bus inventory, but does not include U.S. IC Bus or 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

45

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Frequently Asked Questions

Q1:

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.

Q2:

How many Dealcor dealers did you have as of October 31, 2012?  How many points of service do you have now, in addition

to retail outlets in Mexico and the rest of the world?

A:

Of our 269 primary NAFTA dealers, we have ownership interest in five Dealcor dealers as of October 31, 2012.  We currently have

784 retail outlets in U.S. and Canada, 86 retail outlets in Mexico and 292 in the rest of the world.

Q3:

How are your dealers doing?

A:

Our industry leading dealer network continues to make substantial investments in facility upgrades, expansions and acquisitions.

Channel-wide focus on expanding hours of service, technician training, tooling and a re-engagement with their respective Cummins

distributors

in

anticipation

of

our

expanded

engine

line-up

and

enhancement

of

our

big

bore

emissions

solutions

continues

at

a

rapid

pace.

Financial performance across the distribution network in all significant aspects of operations continues to remain strong.

Q4:

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.

Q5:

How do you fund your wholesale business?

A:

We primarily finance our wholesale portfolio through NFC, which uses traditional private or public securitizations and a bank credit

facility.

Q6:

How is your NFC portfolio performing?

A:

NFC’s

wholesale

portfolio

has

not

experienced

any

credit

losses

in

2012.

NFC’s

retail

notes

portfolio

in

the

U.S.

is

in

run-off

mode

now

that

Navistar

Capital,

the

new

GE

Capital

retail

program,

is

financing

retail

customers.

Q7:

What is your total amount of capacity at NFC?

A:

As of October 31, 2012, total availability in our U.S. funding facilities is $959 million.

Q8:

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

in

the

United

States

to

support

the

sale

of

Navistar

products

–

is

progressing

consistent

with

expectations.

Since

its

inception

in

2010,

the

alliance

has

funded

more

than

$1.9

billion

in

retail

financings.

46

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Frequently Asked Questions

Q9:

What is included in Corporate and Eliminations?

A:

The primary drivers of Corporate and Eliminations are Corporate SG&A, pension and OPEB expense (excluding amounts allocated

to the segments), annual incentive, manufacturing interest expense, and the elimination of intercompany sales and profit between

segments.

Q10:

How will the changing Department of Defense (DoD) budget affect Navistar in FY 2013?

A:

We ended FY 2012 with approximately $1.1 billion in military revenues and based on the current environment we expect military

revenues for FY 2013 to be approximately $750 million.  The coming year will present challenges, but Navistar’s commercial

expertise

may

be

an

advantage

when

the

DoD

is

asked

to

“do

more

with

less.”

In

addition,

the

Company

continues

to

pursue

a

number of foreign military opportunities. Finally, the Company has a fleet of more than 34,000 vehicles in operation in approximately

26 countries, including more than 9,000 vehicles operating with Afghan Security Forces. These vehicles will require parts and

sustainment support throughout their lifecycles.

Q11:

How would Sequestration impact Navistar?

A:

The

full

impact

of

Sequestration

is

still

not

known.

While

we

will

likely

see

some

impact

to

the

number

of

defense

orders

if

the

fiscal

cliff is not addressed, our business structure and product portfolio lessen the risk.

Q12:

How does your FY 2013 Class 8 industry compare to ACT Research?

A:

Q13:

What is included in your equity in loss of non-consolidated affiliates?

A:

Equity in loss of non-consolidated affiliates is derived from our ownership interests in partially-owned affiliates that are not

consolidated,

and

is

primarily

comprised

of

continued

investment

and

start-up

losses

associated

with

our

Mahindra

joint

ventures.

Reconciliation to ACT

2013

ACT*

227,500

CY to FY adjustment

(4,500)

Other misc. specialty vehicles  Included in ACT

(3,500)

Total (ACT comparable Class 8 to Navistar)

219,500

Navistar Industry Retail Deliveries Combined Class 8 Trucks

215,000

Navistar difference from ACT:

4,500

2%

*Source:  ACT N.A. Commercial Vehicle Outlook - December, 2012

U.S. and Canadian Class 8 Truck Sales

47

NYSE: NAV

47

4Q 2012 Earnings – 12/19/2012

Frequently Asked Questions

Q14:

What is your net income attributable to non-controlling interests?

A:

Net income attributable to non-controlling interests is the result of the consolidation of subsidiaries in which we do not own 100%,

and is primarily comprised of Ford's non-controlling interest in our Blue Diamond Parts joint venture.

Q15:

Why did the Company establish an additional valuation allowance on its domestic deferred tax assets in the fourth quarter

of 2012?

A:

On a quarterly basis, we are required to evaluate the need to establish a valuation allowance for our deferred tax assets based on

our assessment of whether it is more likely than not that current or deferred tax benefits will be realized through the generation of

future taxable income. We give appropriate consideration to all available evidence, both positive and negative, in assessing the

need

for

a

valuation

allowance.

In

the

fourth

quarter

of

2012

we

concluded

that

with

the

continued

deterioration

of

our

domestic

performance and additional significant warranty charges, there was not sufficient objective evidence of our ability to realize the

benefits of domestic deferred tax assets on a more likely than not basis and accordingly established a full domestic valuation

allowance.

Q16:

How will the establishment of the valuation allowance affect future tax expense?

A:

In the foreseeable future, our tax expense will be limited to our significant foreign locations. Therefore, our effective tax rate could

be impacted and distortive in comparison to our peers without a valuation allowance.

Q17:

What is your expectation for future cash tax payments?

A:

Our

cash

tax

payments

will

remain

low

in

2013

and

will

gradually

increase

as

we

exhaust

available

net

operating

losses

(NOLs)

and tax credits in the future years.

Q18:

What is the current balance of net operating losses as compared to other deferred tax assets?

A:

As of October 31, 2012 the Company has U.S. federal NOLs valued at $319 million, state NOLs valued at $95 million, and foreign

NOLs

valued

at

$169

million,

for

a

total

undiscounted

cash

value

of

$583

million.

In

addition

to

NOLs,

the

Company

has

accumulated tax credits of $218 million and other deferred tax assets of $2.1 billion resulting in net deferred tax assets before

valuation allowances of approximately $2.9 billion. Of this amount, $2.7 billion is subject to a valuation allowance at the end of

FY2012.

Q19:

What are your expected 2013 and beyond pension funding requirements?

A:

Future contributions are dependent upon a number of factors, principally the changes in values of plan assets, changes in interest

rates

and

the

impact

of

any

funding

relief

currently

under

consideration.

In

2013,

we

expect

to

contribute

$166

million

to

meet

the

minimum required contributions for all plans. We currently expect that from 2014 through 2016, the Company will be required to

contribute

at

least

$200

million

per

year

in

to

the

Plans,

depending

on

asset

performance

and

discount

rates.

This

is

lower

than

our

previously

reported

expectations

due

to

the

impact

of

the

Moving

Ahead

for

Progress

in

the

21st

Century

Act

which

was

enacted

in

July 2012.

48

NYSE: NAV

48

4Q 2012 Earnings – 12/19/2012

Frequently Asked Questions

Q20:

What causes the variance between manufacturing cash interest payments and GAAP interest expense?

A:

Manufacturing

GAAP

interest

expense

is

higher

than

cash

interest

payments

due

to

the

amortization

of

debt

issuance

costs

which

are

amortized

over

the

life

of

our

$1

billion

of

senior

unsecured

high

yield

notes,

$1

billion

senior

secured

term

loan

and

$570

million

of senior subordinated convertible notes, amortization of the original issue discount of the high yield notes and amortization of the

embedded call option in the convertible notes.

The timing of interest payments also impacts the overall variance on a quarterly

basis, but not on a fiscal year basis.

Q21:

What is the change in interest expense year over year?

A:

Interest expense will increase by approximately $80 million.

Q22:

What should we assume for capital expenditures in FY2013?

A:

We plan to continue capital spending within the traditionally guided range of $250 million to $350 million for products and

development

although

we

expect

to

be

at

the

lower

end

of

the

range.

Capital

spending

related

to

Engineering

Integration

is

funded

through the RZFBs and is not included in that range.

Q23:

What are the differences between the accounting vs. economic dilution on your convertible debt?

A:

Please

see

the

presentation

on

the

IR

website

(http://ir.navistar.com/dilution.cfm)

entitled

Dilution

overview

resulting

from

the

Convertible Notes issued on October 2009.

49

NYSE: NAV

49

4Q 2012 Earnings – 12/19/2012

Frequently Asked Questions

Q24:

For the manufacturing debt currently outstanding in your most recent financial statement filings, what are the respective

maturity dates and principal amounts outstanding?

A:

The amounts and maturity dates are as follows (the values shown below are the amounts due and exclude the accounting impact of

any OID or bifurcation):

Senior Secured Term Loan Credit Facility, due July 16, 2014

$1,000 million

8.25% Senior Notes due November 1, 2021

$900 million

3.0% Senior Subordinated Convertible Notes due October 15, 2014

$570 million

Debt of majority owned dealerships (various maturity dates)

$60 million

Financing arrangements and capital lease obligations (various maturity dates)

$140 million

Loan Agreement related to the 6.5% Tax Exempt Bonds due October 1, 2040

$225 million

Promissory Note due September 30, 2015

$30 million

Other (various maturity dates)

$67 million

Total

$2,992 million

50

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

Manufacturing Cash Flow

Beginning Mfg. Cash1 Balance

Fiscal 2010

Fiscal 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

October 31, 2009

$1,152

October 31, 2010

$1,100

October 31, 2011

$1,186

January 31, 2012

$837

April 30, 2012

$681

July 31, 2012

$627

Approximate Cash Flows:

From Operations

409

680

(142)

(72)

(78)

(6)

From Investing / (Cap Ex)

(350)

(485)

(125)

(75)

(81)

(81)

From Financing / (Debt Pay Down)

(110)

(106)

(85)

(2)

110

954

Exchange Rate Effect

(1)

(3)

3

(7)

(5)

11

Net Cash Flow

($52)

$86

($349)

($156)

($54)

$878

Ending Mfg. Cash1 Balance:

October 31, 2010

$1,100

October 31, 2011

$1,186

January 31, 2012

$837

April 30, 2012

$681

July 31, 2012

$627

October 31, 2012

$1,505

1Cash = Cash, Cash Equivalents & Marketable Securities

2Includes cash from the consolidation of minority interests

51

NYSE: NAV

51

4Q 2012 Earnings – 12/19/2012

Outstanding Debt Balances

October 31,

October 31,

2012

2011

(in millions)

Manufacturing operations

Senior Secured Term Loan Credit Facility, due 2014, net of unamortized discount of $9……………………………………..

$        991

-

8.25% Senior Notes, due 2021, net of unamortized discount of $28

and $33, respectively …………………………………..

872

$        967

3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $50 and $73, respectively ……..

520

497

Debt of majority-owned dealerships ………………………………………………………………………………………………….

60

94

Financing arrangements and capital lease obligations ……………………………………………………………………………

140

118

Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040…………………………………………………………………

225

225

Promissory Note ……………………………………………………………………………………………………………………….

30

40

Other …………………………………………………………………………………………………………………………………….

67

39

Total manufacturing operations debt ………………………………………………………………………………………………

2,905

1,980

Less: Current portion ………………………………………………………………………………………………………………….

172

99

Net long-term manufacturing operations debt …………………………………………………………………………………..

$     2,733

$     1,881

Financial services operations

Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019 ………………….

$        994

$     1,664

Bank

revolvers,

at

fixed

and

variable

rates,

due

dates

from

2013

through

2019 ………………………………………………..

763

1,072

Commercial paper, at variable rates, due serially through 2013 ………………………………………………………………….

31

70

Borrowings secured by operating and finance leases, at various rates, due serially through 2017 ………………………….

78

70

Total financial services operations debt ………………………………………………………………………………………….

1,866

2,876

Less: Current portion ………………………………………………………………………………………………………………….

1,033

1,280

Net long-term financial services operations debt ……………………………………………………………………………….

$        833

$     1,596

52

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

SEC Regulation G –

Manufacturing Cash Fiscal Year Comparison

Manufacturing cash, cash equivalents, and marketable securities reconciliation:

(Dollars in Millions)

October 31,

2012

October 31,

2011

October 31,

2010

October 31,

2009

Manufacturing segment cash and cash equivalents

1,059

$     

488

$        

534

$        

1,152

$     

Financial services segment cash and cash equivalents

28

51

51

60

Consolidated cash and cash equivalents

1,087

$     

539

$        

585

$        

1,212

$     

Manufacturing marketable securities

446

$        

698

$        

566

$        

-

$         

Financial services segment marketable securities

20

20

20

-

Consolidated marketable securities

466

$        

718

$        

586

$        

-

$         

Manufacturing segment cash and cash equivalents

1,059

$     

488

$        

534

$        

1,152

$     

Manufacturing marketable securities

446

698

566

-

Manufacturing segment cash, cash equivalents and marketable securities

1,505

$     

1,186

$     

1,100

$     

1,152

$     

53

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

SEC Regulation G –

Manufacturing Cash

Manufacturing

Operations

Financial

Services

Operations

Adjustments 

Condensed

Consolidated

Cash Flows

(Dollars in Millions)

For the year ended October 31, 2010

Cash flows from operations

409

698

-

1,107

Cash flows from investing / capital expenditures:

(350)

492

(576)

(434)

Cash flows from financing / debt pay down

(110)

(1,180)

(10)

(1,300)

Effect of exchange rate changes

(1)

1

-

-

Net cash flows

(52)

11

(586)

(627)

Beginning cash, cash equivalents and marketable securities balance

1,152

60

-

1,212

Ending cash, cash equivalents and marketable securities balance

1,100

71

(586)

585

For the year ended October 31, 2011

Cash flows from operations

680

200

-

880

Cash flows from investing / capital expenditures:

(485)

(206)

(132)

(823)

Cash flows from financing / debt pay down

(106)

6

-

(100)

Effect of exchange rate changes

(3)

-

-

(3)

Net cash flows

86

-

(132)

(46)

Beginning cash, cash equivalents and marketable securities balance

1,100

71

(586)

585

Ending cash, cash equivalents and marketable securities balance

1,186

71

(718)

539

Manufacturing segment cash flow reconciliation:

54

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

SEC Regulation G –

Manufacturing Cash

Manufacturing

Operations

Financial

Services

Operations

Adjustments 

Condensed

Consolidated

Cash Flows

(Dollars in Millions)

For the twelve months ended October 31, 2012

Cash flows from operations

(298)

908

-

610

Cash flows from investing / capital expenditures:

(362)

108

252

(2)

Cash flows from financing / debt pay down

977

(1,040)

-

(63)

Effect of exchange rate changes

2

1

-

3

Net cash flows

319

(23)

252

548

Beginning cash, cash equivalents and marketable securities balance

1,186

71

(718)

539

Ending cash, cash equivalents and marketable securities balance

1,505

48

(466)

1,087

For the three months ended October 31, 2012

Cash flows from operations

(6)

270

-

264

Cash flows from investing / capital expenditures:

(81)

110

(307)

(278)

Cash flows from financing / debt pay down

954

(410)

-

544

Effect of exchange rate changes

11

(1)

-

10

Net cash flows

878

(31)

(307)

540

Beginning cash, cash equivalents and marketable securities balance

627

79

(159)

547

Ending cash, cash equivalents and marketable securities balance

1,505

48

(466)

1,087

Manufacturing segment cash flow reconciliation:

55

NYSE: NAV

4Q 2012 Earnings –

12/19/2012

SEC Regulation G –

See notes at slide 57 & 58

Significant items included within our results:

2012

2011

2012

2011

($ in millions)

Engineering

integration

costs

(A)

9

23

66

64

Restructuring

of

North

American

manufacturing

operations

(B)

7

5

45

127

Cost-reduction

actions

and

other

strategic

initiatives

(C)

73

-

73

-

(D)

149

-

404

-

Charges

for

non-conformance

penalties

(E)

14

-

34

-

Impact

of

Medicare

Part

D

legal

ruling

(F)

-

15

-

15

Net

impact

of

income

tax

valuation

allowances

(G)

2,206

(51)

1,785

(1,527)

Diluted weighted shares outstanding

69.0

73.2

69.1

76.1

Three Months Ended

October 31,

For the Year Ended

October 31,

Adjustments to pre-existing warranties

Significant Items – Three Months and Year Ended October 31, 2012

and 2011

56

NYSE: NAV

4Q 2012 Earnings –

12/19/2012

SEC Regulation G –

Manufacturing

Segment

Profit

–

Three

Months

and

Year

Ended

October 31, 2012 and 2011

Manufacturing segment profit (loss) and adjusted manufacturing

segment profit (loss) reconciliation:

2012

2011

2012

2011

($ in millions)

Net income (loss) attributable to Navistar International Corporation

$  (2,769)

$    255

$(3,010)

$  1,723

Less:

     Financial services segment profit

          �� 16

         27

          91

        129

     Corporate and eliminations

        (224)

     (204)

      (679)

      (571)

     Income tax benefit (expense)

     (2,190)

          -  

   (1,780)

     1,458

Manufacturing segment profit (loss) 

$     (371)

$    432

$   (642)

$     707

Three Months Ended

October 31,

For the Year Ended

October 31,

57

NYSE: NAV

4Q 2012 Earnings –

12/19/2012

(A)

Engineering

integration

costs

relate

to

the

consolidation

of

our

truck

and

engine

engineering

operations,

as

well

as

the

relocation

of our world headquarters. For the three months ended October 31, 2012, the charges included other related costs of $9 million,

of which $8 was recognized within our manufacturing operations by our Truck segment. For the three months ended October 31,

2011, the charges included restructuring charges of $6 million and other related costs of $17 million, of which $19 was

recognized

within

our

manufacturing

operations,

primarily

by

our

Truck

segment.

For

the

year

ended

October

31,

2012,

the

charges included restructuring charges of $23 million and other related costs of $43 million, of which $42 million was recognized

within our manufacturing operations, primarily by our Truck and Engine segments. For the year ended October 31, 2011, the

charges included restructuring charges of $29 million and other related costs of $35 million, of which $51 was recognized within

our manufacturing operations, primarily by our Truck segment.

(B)

Restructuring of North American manufacturing operations are impairment charges, restructuring charges, and other related

charges that are the result of our continued efforts to restructure and rationalize our manufacturing operations in an effort to

optimize our cost structure. The Company committed to plans for the restructuring of certain North American manufacturing

operations, including the closure of its Chatham, Ontario heavy truck plant and actions related to Workhorse Custom Chassis and

Monaco RV recreational vehicles operations. In the fourth quarter of 2012, the Company announced its plan to cease operations

and close its Garland, Texas truck manufacturing operations in the first half of 2013. For the three months ended October 31,

2012 and 2011, the charges included restructuring charges of $7 million and $5 million, respectively, recognized within our

manufacturing operations by our Truck segment. For the year ended October 31, 2012, the charges included charges of $45

million recognized within our manufacturing operations by our Truck and Engine segments, of which $38 million related to the

impairment of certain intangible assets. For the year ended October 31, 2011, the charges included charges of $58 million,

impairment charges of $64 million related to certain intangible assets and property and equipment, and $5 million of other related

costs,

of

which

$124

million

was

recognized

by

our

manufacturing

operations

by

our

Truck

segment.

The

charges

for

the

three

months and year ended October 31, 2012 include $4 million related to the pending closure of our Garland, Texas truck

manufacturing operations.

(C)

In the fourth quarter of 2012, we announced actions to control spending across the Company with targeted reductions of certain

costs.

For

the

three

months

and

year

ended

October

31,

2012,

the

charges

included

restructuring

charges

of

$73

million. Of the

restructuring charges, $57 million was recognized within our manufacturing operations, primarily by our Truck and Engine

segments.

SEC Regulation G –

Notes

58

NYSE: NAV

4Q 2012 Earnings –

12/19/2012

(D)

During 2012, we recognized adjustments to pre-existing warranties that were significantly larger than our historical experience.

For the three months and year ended October 31, 2012, we incurred charges of $149 million and $404 million, respectively, for

adjustments to pre-existing warranties.

(E)

For the three months and year ended October 31, 2012, we recorded charges of $14 million and $34 million, respectively, for

NCPs

for

certain

13L

engine

sales.

These

charges

were

recognized

by

our

Engine

segment.

(F)

In the fourth quarter of 2011, we had an unfavorable ruling related to a 2010 administrative change that we made to the

prescription drug program under our OPEB plan affecting plan participants who are Medicare eligible. The charges were

recognized within Corporate.

(G)

During

the

three

months

ended

October

31,

2012,

we

recognized

an

income

tax

expense

of

$1.973

billion

for

the

increase

in

our

income tax valuation allowance on our U.S. deferred tax assets, as well as an income tax expense of $233 million relating to the

reversal of income tax benefits recorded during the first nine months of 2012. For the year ended October 31, 2012, we also

recognized an income tax benefit of $189 million from the release of a significant portion of our valuation allowance on our

Canadian deferred tax assets in the second quarter of 2012.

SEC Regulation G –

Notes

In the third quarter of 2011, we recognized an income tax benefit of $1.476 billion from the release of a portion of our income tax

valuation allowance on our U.S. deferred tax assets. For the three months ended October 31, 2011, we recognized an additional

income tax benefit of $61 million related to the release of a portion of our income tax valuation allowance. As domestic earnings were

taxable upon the release of the income tax valuation allowance, we recognized $10 million of domestic income tax expense in the

three months and year ended October 31, 2011 that would not have been recognized had we not released a portion of the income

tax valuation allowance. The $10 million of domestic income taxes were netted against the benefit of $61 million and $1.537 billion

from the release of a portion of the income tax valuation allowance for the three months and year ended October 31, 2012,

respectively.

59

NYSE: NAV

4Q 2012 Earnings – 12/19/2012

ROIC Definition

(PBT

1

+ Mfg Interest + Implied Interest on Operating Leases) X (1-Cash Tax Rate)

Paid-in-Capital –

Treasury Stock + Retained Earnings

2

+ Book Value of

Operating Leases + Book Value of Mfg Debt

3

–

Mfg Cash

4

1

–

Excludes significant items items such as restructuring, impairments, and

engineering integration expenses

2

–

If an Accumulated Deficit exists, then it will not be included in the calculation

3

–

Excludes Financial Services Operation debt

4

–

Manufacturing Cash includes Cash and cash equivalents + Marketable

securities