EX-99.1 2 dex991.htm SLIDE PRESENTATION FOR ANALYST DAY WEB CAST TO BE HELD ON JANUARY 22, 2009 Slide Presentation for Analyst Day Web Cast to be held on January 22, 2009
Investor & Analyst Day
Melrose Park
January 22, 2009
Exhibit 99.1

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 of our Form 10-K for the fiscal year ended October 31, 2008, which was
filed on December 30, 2008.
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
Other Cautionary Legends
•
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.

Agenda
•
Review Strategy
–
Short Term
–
Longer Term
•
Ingredients of Success
•
Q & A
•
Product and Technology Tour
4

5
Original FY2009 Goal
•
Original Goal was $15+ Billion Revenue-$1.6
Billion Manufacturing Segment Profit at
415,000 Industry
•
Now 2009 Volumes are unknown
•
Focus is on reducing impact of cyclicality
–
Non-Traditional/Expansion Markets
–
Grow Parts
•
Improve cost structure while developing
synergistic niche businesses with richer
margins
•
Improve conversion rate of operating
income into net income
•
Controlling our Destiny
Leveraging
What We Have and What Others Have Built

6
Controlling Our Destiny
Leveraging
What We Have and What Others Have Built
•
Market share –
Ahead of Plan
•
ProStar
®
•
Lonestar
®
•
Hybrids
•
MaxxForce™
11L/13L Launch
•
EGR Proprietary Solutions
On target:
•
Manufacturing
•
Sourcing
•
Commodities
•
2008 Capital Spending
<$200M
•
Parts Revenue Growth
•
Strong Military
•
CAT J.V. Pending
•
South America Engine

Leveraging Assets & Controlling Our Destiny
Dealing with the Unanticipated
7
*Excludes
$358
million
of
asset
impairment
charges
and
$37
million
other
costs
related
to
expectations
of
significant
permanent
reductions
related
to
Ford
engine
volume. 
Note:  SEC Reg
G reconciliation slide in appendix

Actions to Overcome Industry Volume
•
Market share improvement
•
SG&A and business restructuring cost reductions
•
Presence in other expansion areas
•
Military
•
Emissions strategy
8

Leveraging Our Assets while Controlling
Our Destiny
•
When we were at $7 -
$8
Billion in revenues, we
spent $300 -
$500 Million in
Capital Expenditures*
•
Now ~$15 Billion in
revenues and our goal is to
spend $250 -
$350 Million
in Capital Expenditures
–
FY 2006 -
$230M
–
FY 2007 -
$312M
–
FY 2008 -
$176M
9
*Exclusive of purchases of equipment leased to others

10
Investment
Facilities/Sourcing
Military parts distribution center
West Point Military Assembly
-
Facility
-
Contract employees
Garland
Escobedo
South America block line
Paint assembly
Leveraging Our Assets while Controlling
Our Destiny

Leveraging Assets -
Engine Growth-9.3L 570 Platform Expansion
NGD 9.3L
Euro IV
NGD 9.3L
Euro III and IV
11
11

Management Team
12
Daniel C. Ustian
Chairman,
President and
Chief Executive
Officer
Terry M. Endsley
Executive Vice
President and Chief
Financial Officer

Strategy to Lead
13
•
Class 6 through 8
•
Class 3 through 5
•
Niche markets
•
Military
•
Global expansion
Commercial Trucks, Buses and Diesels

Medium
Truck
Strategy to Lead-Great Products
Total FY2008 Class 6-8 Market Share was 31%
*
14
55% Market Share
School
Bus
36% Market Share
37% Market Share
Severe
Service
Truck*
Heavy
Truck
19% Market Share
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
FY07 Retail Share
FY08 Retail Share
FY08 Order Share
#1 in market share despite
industry consolidation
First Student announced
potential $1.2 billion purchase
agreement with Navistar’s IC
Bus
MaxxForce™
EGR
engines
#1 in market share
A leader in medium hybrid
MaxxForce™
EGR
engines
#1 in market share
3
straight
year
of
increasing
market share
MaxxForce™
EGR
engines
#4 in market share
Executing
on strategy
-
ProStar
®
launch in early
FY2007; derivatives
launched in FY2008
-
LoneStar
®
launched in late
FY2008
*Includes U.S. Military shipments
rd

MaxxForce™
DT Series 9/10
MaxxForce™
7
Ford V8
MaxxForce™
5
South American
Engines
MaxxForce™
Big Bore
11L/13L
6.4L V8
4.5L V6
7.6L/9.3L
Strategy to Lead
Great Products:                       Engine
Complete line of
3L-7L products
I4/I6
Built for power, reliability, durability and fuel economy
36% Market Share
Mid-Range Engines
15

Extra
Fluid
Additional
Maintenance
Additional
Driver
Training
Extra
Exhaust
Hardware
Environmental Strategy to Lead:
EGR Takes the Emissions Burden Off Customers
16

17
Environmental Leadership
Red
Bull
Purchases
New
International
®
DuraStar™
Hybrid Delivery Trucks
Trucks save 30%-40% fuel costs while reducing emissions
UPS, EPA, Eaton, Navistar Agree: “Hydraulic
Hybrid Vehicles Ready for Prime Time”
Electric Step Van

Strategy to Lead: Military
~70% Wins on Contracts
18

19
Engine Global Diversification
2008
2013
China
India
Russia
North
America
South
America
Other
ROW
South
America
North
America
N.A. Growth
Ford
315,000
Engines
460,000
Engines

Strategy to Lead: Global Engine Strategy
20
•
South American product expansion
•
Integrate with Navistar Truck growth
–
Military
–
Bus
–
Rest of World (ROW)
•
MaxxForce
11L/13L/15L
•
Diversification of customers
TM

Seen as independent manufacturer of diesel engines
Seen as independent manufacturer of diesel engines
Complete product line up: 50 hp to 375 hp
Complete product line up: 50 hp to 375 hp
Develops technology according to customer needs
Develops technology according to customer needs
Strong brand equity (MWM)
Strong brand equity (MWM)
Present in various segments: vehicular, wheel tractors, industrial, Genset
Present in various segments: vehicular, wheel tractors, industrial, Genset
Wide customer portfolio
Wide customer portfolio
Strategically located
Strategically located
Customer intimacy
Customer intimacy
Flexibility
Flexibility
Lean organization
Lean organization
Exports represent 30% of net sales
Exports represent 30% of net sales
How and Why South America is so Successful
21

Engine-South America Customers & Applications
22

2 Foundries
3 Machining
3 Assembly
3 Machining
2 Assembly
1 Assembly
1 Machining
1 Assembly
2 Foundries
3 Machining
3 Assembly
3 Machining
2 Assembly
1 Assembly
1 Machining
1 Assembly
Engine Global Operations Strategy
Supply Chain
•
Source where assembled
•
Local presence advantage
•
Leveraging global scale
•
Multiple cost competitive sources
•
Global sourcing to 50%
23
Manufacturing
•
Assemble products where sold
•
Manufacturing location flexibility
•
Multiple changing customers varying
volumes
•
Adapting to local needs
•
North American plant rationalization

•
Commercial growth
India and exports
-
New full line Class 4-8 in
development
-
New plant for trucks and
engines in 2009
-
2011 target volume 40,000
units/year (market 400,000
Class 3-8)
-
MNAL plans on selling  ~13K
light trucks and buses in
2009
-
MNAL will also begin
production of the new heavy-
duty truck  
24
Continued Focus on Global Growth
•
CAT J.V. pending
•
Commercial bus
•
Russia
•
China
•
Australia
•
Grow existing markets
-Latin America
-South Africa
-Middle East
•
Dedicated dealers in all 
key markets
Rest of World-Truck
India
Rest of World-Engine
•
Russia
•
India
•
China
•
Grow existing
markets
-Latin America
-South America

•
Base plan challenged
–
Industry
–
Pension & OPEB –
year-over-year $250
million increase
–
Military
25
Summary
•
Increase market share
•
Cost reductions
–
Design
–
SG&A
•
Increase military
•
Plant rationalization
•
Target $5.10 to $5.60
2009 with Actions
2009 Base Plan
2010 Actions
Industry
Global opportunities
Pension
Revenue
EPS
*For additional information please see Reg
G slide in appendix

Jack Allen
President,
N. A. Truck Group

Leveraging Assets/Controlling Destiny
Leveraging
What We Have and What Others Have Built
27

Medium Trucks
37% Market Share
Modern high-quality
cab and chassis
MaxxForce ™ EGR
engines
Best dealer network
Leadership in hybrid
vehicles
28

Medium Trucks: Class 6 / 7
TranStar
WorkStar
Springfield Flexibility
New
Contract
Hybrid DuraStar
Blue Diamond JV
MaxxForce™
Diesels
Platform Scale
-
Cab
-
Chassis
Medium Industry
Medium Share
29
Cost
Growth

Severe Service
3   straight year of
increasing market share
Rugged tailored 
products for niche
applications
MaxxForce™
EGR
engines
Best dealer network
36% Market Share
30
rd

Severe Service
31
5900 Set Back Axle
LCOE
Garland   
Modification Center
MaxxForce™
11L/13L
Platform
Scale
-
Cab
-
Chassis
Severe Industry
Severe Share*
Garland      
cost structure
Cost
Growth
NOTE: ALF J.V. and CAT J.V. Pending
*Excludes military shipments

Heavy Trucks
32
19% Market Share
#1 with 30% market share
in Regional Haul with
11L/13L engines
New products
-
ProStar
®
launch in early
FY2007; derivatives
launched in FY2008
-
LoneStar
®
launched in
late FY2008
•
Best fuel economy in
class
•
Best dealer network
•
Incoming order share at
20+%

MaxxForce™
Big Bore
11L, 13L, 15L
ProStar
®
&        
LoneStar
®
Innovative
interior design
Heavy Industry
Heavy Share
Heavy Trucks: Class 8
Manufacturing
cost opportunity
Cab Scale
33
Cost
Growth

Supply Base and Competitor Migration South
•
Competitor:
x
•
Supplier:  
OEM         Mexico
OEM         Exited business
OEM         Consolidated
operations
Supplier 1         Nuevo
Supplier 2         Mexico
Supplier 3         San Luis
Supplier 4         Texas
•
Customer Growth
in Southern
corridor:
Escobedo Plant
x
x
x
Chatham Plant
34

Big Bore Engine Volume Transition
35
Today
2009 Transition
2010
Big Bore
11L-15L
11L/13L
46%
15L
54%
<425 hp
12%
425-455 hp
64%
475-550 hp
24%
MaxxForce™
11L/13L
330 hp-475 hp @ 1900
rpm
1250-1700 hp lb.–ft.
@ 1000 rpm

2010 EGR Advantage
•
In 2009 all
MaxxForce engines meet or
exceed the government NOx Standard 
•
No other engine OEM has accumulated a
significant number of credits by exceeding
EPA standards
•
Advanced EGR provides us with a 2010
solution without the need for additional
equipment
Advanced EGR In-Cylinder
NOx Reduction
SCR-based solution 
requires urea for after
treatment
Additional parts,
components and complex
electrical interfaces could
reduce SCR system
reliability
vs.
Urea requires
infrastructure
and increases
operating cost
Benefits of EGR
•
Cost
36

Dee Kapur
President,
Truck Group

Australia
South Africa
India*
Mercosur
Other
LA
30,000
335,000
129,000
22,000
25,000
54,000
North
America
443,000
Western
Europe
345,000
China
746,000
Turkey
Middle
East
53,000
Russia
147,000
Mexico
44,000
Note: Includes Medium and Heavy Trucks >6T only  Source: JD Power; Monitor Analysis, Mahindra Data (*India >3.5T)
Global Truck Market Overview
•
Global Truck market provides a significant
opportunity for growth for Navistar
38
Low Growth
Medium Growth
High Growth

39
World Economies:  The Fundamentals for
Continued Growth
United States
2009  2011   2013
GDP Growth
Prospects
0.6
3.7
3.2
South America
2009  2011   2013
GDP Growth
Prospects
4.1
4.1
4.1
South Africa
2009  2011   2013
GDP Growth
Prospects
3.9
4.8
4.8
Saudi Arabia
2009  2011   2013
GDP Growth
Prospects
5.6
5.6
5.8
Australia
2009  2011   2013
GDP Growth
Prospects
3.1
3.4
3.5
Russia
2009  2011   2013
GDP Growth
Prospects
6.3
5.9
5.6
GDP (US$ trillions)
$0
$2
$4
$6
$8
$10
$12
$14
$16
United States
China
India
Western
Europe
Annual GDP Growth
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
United States
China
India
Western
Europe
Population (millions)
0
200
400
600
800
1000
1200
1400
United States
China
India
Western Europe
Source:  World Bank 2008
Regions with
significant natural
resources have
promising prospects

40
Navistar Global Growth
CATJV & China Partner
Partnership for global
growth including expansion
into China
MNAL
Growth through
partnership with
Mahindra for India
and exports
EXPORTS 
Opportunistic exports                    
of current North
America products
Growth potential into next generation
Growth potential into next generation
200k+ units/year
200k+ units/year
$7+ Billion revenue
$7+ Billion revenue
40
NOTE: CAT J.V. Pending

Expanding Navistar’s Global Footprint
Phase I:  Export opportunities—12,000 units in 2008
41

Expanding Navistar’s Global Footprint
Phase II:  Launch Mahindra-Navistar products/production in India in 2009
42
Mahindra
+

Expanding Navistar’s Global Footprint
Phase III:  Expand with Caterpillar into rest of world, including China
43
Mahindra
+
+
NOTE: CAT J.V. Pending

44
Global Strategy: Leveraging What We Have
and What Others Have Built
Strong, well capitalized global distribution
Customer relationships in
construction/machinery
Well known and respected global brand
Best-in-class truck knowledge and
experience
Strong presence in Latin America and South
Africa
Leader in Indian light truck market
Mahindra-Navistar JV to build cost-
competitive COE platforms for local
markets
Talks ongoing between Navistar,
Caterpillar and a top-tier Chinese
commercial vehicle manufacturer
Mahindra
China
Partner
NOTE: CAT J.V. Pending

Global Commercial Bus Opportunities
Mexico
Industry 15k+
India
Industry 30k+
North America
Industry 15k+
Latin America
Industry 9k+
Russia, Africa,
Middle East
Industry 9k+
Mercosul
Industry 25k+
45
Key enablers to global commercial bus growth
•
Crude oil prices WILL rise again
•
Increased focus on environmental conservation
•
Ridership on mass transit breaks records –
USA Today,
June 16, 2008
Global market assumptions based on information from the Freedonia Group

Leveraging Assets
46
J.V. with Neobus
Neobus:
2
Largest
body
manufacturer in Brazil
Low cost/high quality
design capability
MIDI Bus targeted for Mexico in 2009
Leverage truck chassis capabilities
Leverage distribution network
Study U.S./Canada opportunities
School Bus
Solidify North American leadership with
EGR
Review global opportunities for safe school-
student transportation
Preliminary discussions in U.K. and China
Motorcoach
J.V. with Neobus
or
Monaco
U.S./Canada market
EGR advantage
Existing distribution
Preliminary discussions
with number 1 carrier
NOTE: J.V. Pending
nd

47
Note:  Truck prices are estimated retail
prices (McKinsey, Booz, Monitor)
Australia
South Africa
Turkey
Middle
East
India
Russia
Mercosur
Other
LA
Mexico
China
Western
Europe
North
America
Avg. heavy truck price
<$50K
$50-$100K
$100-$150K
>$150K
Conclusions
•
Marriage of U.S. Technology and low cost/high quality
manufacturing (India/China/Brazil)
•
Products tailored to local markets
•
Global distribution footprint with partners (CAT, Mahindra)
•
Potential 200,000 vehicles; $7 Billion revenue

Archie Massicotte
President, Navistar
Defense

Leveraging Assets/Controlling Destiny
Market Opportunity
49
Benefits
•
Sharing of engine and truck
development cost
•
Increased volume in current
product offerings
•
Expanding the product
portfolio with new products
•
Gaining access to the
global marketplace by
providing products and
services to the U.S.
government and their allies
throughout the world
•
Entry into a less cyclical
business

World War II  (1942)
International M-3-4                             1
½
ton
Cargo
Truck
WW I
•
International Model H
•
Deployed in Europe
Navistar Military History
•
Gulf War 12/90
•
Near Hafar
Al-Batin
•
Seventy Five F5070 6x4s
•
Launch of "Desert Storm"
•
Transported  fully loaded,                                     
battle ready, M1A1 "Abraham" tanks,
artillery, APCs, M88 artillery and Bradely’s
50

Competitive Landscape
HET
HEMTT
HEMTT -
PLS
M915
FMTV
MTVR
HMMWV
51

Global Parts Distribution
•
North America (9)
•
Dubai, UAE
•
South Africa
•
In Theater -
Iraq and
Afghanistan
Sustainment
•
1,100 locations worldwide
•
80 plus locations in 70
countries        
Manufacturing
•
Extremely flexible assembly
facilities to meet urgent
requirements
Engineering
•
1,200 engineers
•
Designed for assembly
•
Rapid response
•
Global resources/capabilities
–
Suppliers integrated into
design
ENABLERS FOR OUR SUCCESS
ENABLERS FOR OUR SUCCESS
Leveraging What We Have
52

School Bus
Class 6 and 7
Combined Class 8
19,000 to 22,000
19,000 to 22,000
Units per year
Units per year
Engines
38,000 to 78,000
38,000 to 78,000
Units per year
Units per year
37,000 to 73,000
37,000 to 73,000
Units per year
Units per year
405,000 to 520,000
405,000 to 520,000
Units per year
Units per year
Leveraging What We Have
53

Navistar Defense Growth
54

Family of Products
Commercial Off The Shelf (COTS)
COTS with Military Features
True Tactical Wheeled Vehicles
55

WorkStar
-
Severe Service
56
TM

MaxxPro
MaxxPro MEAP
MaxxPro Plus
MaxxPro Plus w/ EFP
MaxxPro Dash
MEAP Integration
(Delivered April ’08)
EFP Installation
(Delivered May ’08)
53k GVW Upgrade
(Launched April ’08)
Dash Ambulance
(Under development)
Leveraging What We Have
57

Afghan (AFMTV) and MTV Contract
•
Original AFMTV contract ordered 2,916 units and $420M
(Delivered)
•
New MTV contract potential –
7,072
units for $1.3B
•
Products supported by in-country dealer
58

Tacom Contracts
Iraq and Afghan Reconstruction Efforts
59

Canadian Military
•
Medium Support Vehicle System (MSVS) program
•
MILCOTS contract of 1,300 units production –
$230M –
18 months
•
Logistics backbone of the Army
•
Leads path to standard military pattern vehicles
(SMP) –
1,500 units
60

•
Customer: JLTV Program Office (U.S. Army, U.S. Marines),
Air Force, Special Forces –
Replace HMMWV in some roles –
better mobility, survivability and transportability
•
Customer need: 8 year production, 60,000 vehicles + trailers
•
Incumbent: AM General
•
Summary of family of vehicles: Three weight categories, 11
variants with high commonality across classes and variants
•
Government Acquisition Strategy: Four phases
Technology
Demonstrator (TD)
System
Development &
Demonstration
(SDD)
Low Rate Initial
Production
(LRIP)
Full Rate
Production (2015-
2019)
Full Rate
Production
(2020+)
7 vehicles, 4 ballistic
hulls, 4 trailers
~100 vehicles
600 vehicles
29,400 vehicles
30,000 vehicles
27 mos
21 mos
24 mos
5 yrs
3 yrs
3 –
4 awards
Full open competition
2 awards
Full open competition
1 award
Down-select
1 award sole source
for 1    5 yrs
1 award sole source
Re-compete FRP
JLTV
61
st

Navistar Defense/
BAE Systems
Lockheed Martin/
Armor Holdings (BAE)
General Dynamics/AM General
General Tactical Vehicles (GTV)
Oshkosh/Northrop Grumman /
Plassan
Force Protection/DRS
Textron/Boeing/Ford
Raytheon/Blackwater
JLTV Competitors
62

63
MRAP –
All Terrain Vehicle
(M-ATV)
•
The U.S. Department of Defense plans to acquire M-ATVs in support of an
approved Joint Urgent Operational Needs Statement (JUONS)
•
The M-ATV will be lighter than current MRAP vehicles and must provide
maximum protection levels while delivering unprecedented off-road mobility
•
Government will make up to five indefinite delivery/indefinite quantity (IDIQ)
awards
•
Proposal due 1/12/09
•
Two vehicles due 2/23/09
•
IDIQ award scheduled for 4/19/09
•
Government intends to award ONE vendor May 2009
•
Projected volume 2,080 –
10,000

TSV -
Tactical Support Vehicle (HUSKY)
•Up to 262 units on initial buy
•To support operations in Afghanistan
•Deliveries to start spring 2009
•Armored 4x4 with PAYLOAD capacity (3,000 PLUS pounds)
OUVS-
Operational Utility Vehicle System
(4,000 –
8,000 units)
•2 categories -
light and heavy
•Navistar Defense down selected in both
•MXT platform similar to TSV above
UK -
Opportunities
64

Exciting new business for Navistar Defense
Leverages our Parts expertise
This is an opportunity to bring new capabilities to DOD
and re-invent traditional government fleet sustainment
MRAP Sustainment
MRAP Sustainment
•
Field service representatives
•
Vehicle upgrades
•
ECP retrofit
•
Battle damage assessment and repair
•
New equipment training
•
Spares
•
Supply distribution system
•
Technical data management
•
RESET (CONUS and OCONUS)
•
Fleet management
•
Manufacturing and production
65

Funding Outlook
Funding Outlook
Defense spending outlook
•
President Obama supports de-escalating the war in Iraq but
also endorses focusing more resources on Afghanistan
•
Administration working on an economic stimulus package
therefore it would be difficult to envision a cut to defense
spending during a recession
•
Obama’s appointments indicate a more centrist approach
•
Obama
desires
to
increase
“Readiness”
and
he
supports
the 
“grow the Army”
strategy
•
Senate Democrats didn’t achieve filibuster proof majority
Conclusions
•
Over the moderate term, defense spending will most likely grow
•
FY2011, appears to be the 1   year that can be significantly
impacted by the new administration
•
Pulling out of Iraq and leaving behind equipment will present
opportunities for Navistar
•
Obama’s administration’s dedication  to rooting out
inefficiencies in government and finding ways to streamline
operations benefits Navistar
•
Increasing
readiness
levels,“
grow
the
Army’”
strategies,
and
an
Afghanistan troop surge all present opportunities
66
st

FY2009 Global War on Terror (GWOT)
Supplemental
67
Secretary
Gates
estimate
for
additional
amount
of
funding
needed
by
DoD
for
remainder
of
FY2009
–
submitted
Dec
2008

•
Foreign military opportunities identified in over 20
countries
–
Iraq
–
Netherlands
–
UK
–
Romania
–
Saudi Arabia
–
Australia
–
Canada
–
Poland
–
Turkey
•
Navistar Defense-contract manufacturer (FMTV, MRAP
reset/recap)
•
Contract logistic support/integrated logistic support
revenue streams
–
Mexico
–
Singapore
–
Taiwan
–
UAE
–
Greece
–
Hungry
–
Croatia
–
Portugal
Other Opportunities
68

Delivery is Just the Beginning
Sustainment
Matters
69

70
Sustainment/Reset/Remanufacturing
Tactical
•
7000 MV
•
AFMTV
•
MTV
•
Taiwan
•
FMS-UK (TSV)
•
JLTV –
down
selected
•
OUVS –
down
selected
•
FMS –
other
Militarized/
supporting vehicles
•5000 MV
•Armored Line
•Haul Tractor
•TACOM
–
other
urgent requirements
•MXT
MRAP
U.S. & foreign
MRAP variants (6+)
•CAT I & II base
•Larger vehicle –
increased protection
(PLUS)
•Smaller vehicle
(DASH)
•Ambulance
Future opportunities
•M-ATV
•FMTV
•MMPV
•MILCOTS
-
Canada
•SMP
-
Canada
•M915
•JLTV
•OUVS
•HET
•STS
We believe the military business (including parts) is sustainable at ~$2 Billion
In FY2008 we delivered ~ $4 Billion in revenues
Navistar Defense Group

Looking Forward
•
Fleet is aging faster than planned
•
Recognition of new capabilities and technologies
•
Operation Iraqi Freedom/Operation Enduring Freedom is approaching a
major decision point
•
Equipping Iraqi Army if U.S. withdraws is large opportunity
•
Resetting U.S. Fleet if U.S. withdraws is large opportunity
•
Lessons learned from MRAP form basis for new vehicles
•
Rest of World opportunities
•
Navistar Defense has developed unrivaled reputation in U.S.
Armed Forces –
should lead to major new opportunities
71
Military vehicles as an industry is undergoing rapid change;
Represents huge opportunity for Navistar Defense

Purchaser
“This is a significant achievement. This
program has gone from zero to ten
thousand in just about a year and a half.
These vehicles have proven themselves on
the battlefield and are saving lives.”
Secretary of Defense –
Robert Gates
Delivery of 10,000   MRAP
End Customer
“Our MRAPs
have saved no less than thirty Soldiers’
lives from IED attacks that would surely have been more
catastrophic in less protected vehicles. The IRON BCT
Soliders
pictured above are just a few of our troops who
have endured IED strikes in their MRAPs
and walked
away no problem”.
Please pass on this “Thanks!”
to your employees.
COL Robert P. White –
Commanding Officer
2    Brigade Combat Team, 1   Armored Division
Measurement of Success
72
th
nd
st

WE’RE IN.
WE’RE IN.

Terry Endsley
Executive Vice
President and Chief
Financial Officer

Ford Settlement
•
Lawsuits have been withdrawn
–
Agreement on intellectual property
–
Warranty dispute resolved
•
Supply agreement –
December 2009
•
Received cash settlement
•
Blue Diamond ventures restructured
75

76
10/31/2009 Cash Goal
$ (Millions)
Revised
Goal
Manufacturing Cash¹ Balance:
10/31/2007
10/31/2008
10/31/2009
October 31, 2006
$1,078
October 31, 2007
$716
Approximate Cash¹ Flows:*
From Operations
($231)
$414
Dividends from NFC
$400
$15
From Investing / (Cap Ex)
($70)
($216)
From Financing / (Debt Paydown)
($480)
($133)
Exchange Rate Effect
$19
($21)
Manufacturing Cash¹ Balance:
October 31, 2007
$716
October 31, 2008
$775
October 31, 2009
$500 to $600
¹Cash = Cash & Cash Equivalents
*The
above
unaudited
non-GAAP
manufacturing
cash
and
cash
flow
information
has
been
revised
to
reflect
the
correction
of
certain
errors.
The
corrections
within
the
unaudited
non-GAAP
manufacturing
cash
flow
information,
which
are
not
considered
material,
had
no
effect
on
previously
reported
unaudited
non-
GAAP
manufacturing
cash
balances.

77
NFC Liquidity Remains Strong
•
NFC has total available undrawn committed funding of approximately $900 million at 10/31/2008
•
We expect NFC profitability to rebound in 2009
–
Volumes and margins will remain depressed for first half
–
Impact of derivative accounting depends on interest rate movement after October 2008
–
Margins improving –
finance competitors on sidelines/not aggressive
•
NFC retail activity primarily funded by facilities that do not require refinancing until 2010
•
NFC has continued to obtain access to bank conduit markets to fund retail note acquisitions
•
Over $1.2B in retail notes have been sold and securitized since the subprime issues began to impact the asset securitization
market
•
Serviced receivables balances tracking to truck market trough
•
Truck financing is available for quality credits, especially conquest accounts
Retail Notes
Bank Revolver
•
$500 million revolving
warehouse (TRIP)
–
Acquired notes sold into TRIP
–
TRIP warehouses, then
securitizes via bank conduits
•
TRIP terms
–
Matures June 2010
On-balance sheet
•
$1.4B facility
–
Initial funding of retail
note acquisitions
–
Also funds
dealer/customer
open accounts
•
Revolver terms
–
Matures July 2010
On-balance sheet
Dealer Floor Plan (DFP)
•
Current situation
–
~$1.0B funding facility
(NFSC)
–
Available $345 million
•
NFSC terms
–
Bank conduit portion 
(VFC) renewed October
2008
–
Public portion matures
February 2010
Off-balance sheet

78
Capital Structure –
Next Steps
•
Intend to execute at least 1 million share repurchase
•
Anticipated cash flow in excess of CapEx/Investments allows consideration of debt
buyback
–
Currently 68 cents to $1 par
–
Debt reduction, gain on extinguishment
•
Recent key financing renewals ensure NFC liquidity for 2009
–
Must
have
NFC-U.S.
revolver
refinanced
by
Q2
2010
-
$1.4B,
relationship
banks
•
Parent company has no need to refinance in near-term –
not until late 2011
–
Using
combo
of
parent
company
and
NFC-U.S.
availability
to
meet
Mexican
truck
market
inventory
financing
demands
on
NFC-Mexico
–
$340M unutilized committed credit facilities
–
Benefiting from low Libor interest rate (next reset less than 5%)
–
Debt buyback now could greatly facilitate ease of refinancing later
•
We have sufficient liquidity/borrowing capacity to execute our strategies

79
Original FY2009 Goal
•
Original Goal was $15+ Billion Revenue-$1.6
Billion Manufacturing Segment Profit at
415,000 Industry
•
Now-2009 Volumes are unknown
•
Focus is on reducing impact of cyclicality
–
Non-Traditional/Expansion Markets
–
Grow Parts
•
Improve cost structure while developing
synergistic niche businesses with richer
margins
•
Improve conversion rate of operating
income into net income
•
Controlling our Destiny
Leveraging
What We Have and What Others Have Built

Q&A

Appendix

82
2009 Guidance
($ Millions (excluding EPS))
Truck Industry Units
244K
to
256K
Revenue
$15,000
to
$16,000
Mfg. Segment Profit*
$1,000
to
$1,050
Below the line items
~$(590)
Profit Before Tax
$410
to
$460
Net Income
$370
to
$410
EPS
$5.10
to
$5.60
# of shares
~73M
Guidance
*For additional information please see Reg G slide in appendix

Navistar
1st Q
2nd Q
3rd Q
4th Q
Full Year
1st Q
2nd Q
3rd Q
4th Q
Full Year
Bus (School)
60%
60%
59%
59%
60%
57%
57%
48%
58%
55%
Medium (Class 6-7)
37%
34%
34%
37%
36%
34%
35%
39%
36%
36%
   Heavy (LH & RH)
16%
12%
15%
17%
15%
16%
15%
19%
25%
19%
Severe Service
24%
28%
26%
32%
27%
35%
36%
34%
41%
37%
Combined Class 8
18%
17%
19%
22%
19%
23%
23%
25%
30%
25%
Combined Market Share
25%
25%
27%
31%
27%
29%
29%
30%
35%
31%
Navistar
1st Q
2nd Q
3rd Q
4th Q
Full Year
1st Q
2nd Q
3rd Q
4th Q
Full Year
Bus (School)
60%
60%
59%
59%
60%
57%
57%
48%
58%
55%
Medium (Class 6-7)
37%
34%
34%
37%
36%
34%
35%
39%
36%
36%
   Heavy (LH & RH)
16%
12%
15%
17%
15%
16%
15%
19%
25%
19%
Severe Service
23%
26%
24%
28%
25%
28%
26%
26%
29%
27%
Combined Class 8
18%
16%
19%
21%
18%
20%
19%
21%
26%
22%
Combined Market Share
25%
25%
27%
31%
26%
27%
27%
28%
33%
29%
2007
2008
Market Share - US & Canada School Bus and Class 6-8
2007
2008
Market Share –
U.S. & Canada School Bus
and Class 6-8
83

84
Truck Shipments
Note:  Information shown below is based on Navistar’s fiscal year-end
Fiscal Year 2006
1Q06
2Q06
3Q06
4Q06
Full Year 2006
BUS
4,100
4,500
4,300
5,100
18,000
MEDIUM
7,300
11,500
12,100
14,300
45,200
HEAVY
7,900
9,900
10,200
15,400
43,400
SEVERE
3,900
4,500
4,300
6,300
19,000
TOTAL
23,200
30,400
30,900
41,100
125,600
MILITARY (U.S. & Foreign)
400
500
1,200
800
2,900
EXPANSIONARY
5,800
6,600
7,500
7,000
26,900
WORLD WIDE TRUCK
29,400
37,500
39,600
48,900
155,400
Fiscal Year 2007
1Q07
2Q07
3Q07
4Q07
Full Year 2007
BUS
3,400
4,100
3,200
3,900
14,600
MEDIUM
9,700
6,800
5,600
6,600
28,700
HEAVY
7,000
4,500
2,600
3,300
17,400
SEVERE
3,900
3,300
3,500
3,700
14,400
TOTAL
24,000
18,700
14,900
17,500
75,100
MILITARY (U.S. & Foreign)
600
900
700
1,000
3,200
EXPANSIONARY
9,100
8,700
9,000
8,500
35,300
WORLD WIDE TRUCK
33,700
28,300
24,600
27,000
113,600
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
3,400
3,600
12,800
TOTAL
11,800
16,900
16,400
20,300
65,400
MILITARY (U.S. & Foreign)
1,600
2,200
2,300
2,600
8,700
EXPANSIONARY
6,000
8,100
8,400
5,600
28,100
WORLD WIDE TRUCK
19,400
27,200
27,100
28,500
102,200

85
World Wide Engine Shipments
Navistar
1st Q
2nd Q
3rd Q
4th Q
Full Year
Ford
80,200
  
92,200
  
75,200
  
68,100
  
315,700
 
Other OEM's (All Models)
25,300
  
29,000
  
26,500
  
24,100
  
104,900
 
Engine Shipments to Truck Group
17,600
  
24,300
  
25,100
  
32,100
  
99,100
   
Total Shipments
123,100
145,500
126,800
124,300
519,700
 
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's (All Models)
25,900
  
31,500
  
35,100
  
37,400
  
129,900
 
Engine Shipments to Truck Group
12,900
  
15,700
  
19,000
  
16,000
  
63,600
   
Total Shipments
85,800
  
102,500
79,300
  
77,900
  
345,500
 
2008
World Wide Engine Shipments 
2007
2006

86
Order Receipts –
U.S. & Canada
Navistar (Order receipt data)
FY 2007
FY 2008
Bus (School)
9,600
            
11,900
   
Medium (Class 6-7)
21,400
          
19,400
   
Combined Class 8 (Heavy & Severe Service)
26,200
          
45,700
   
Total Navistar
57,200
          
77,000
   
Industry (Order receipt data)
FY 2007
FY 2008
Bus (School)
19,400
          
20,900
   
Medium (Class 6-7)
50,500
          
54,600
   
Combined Class 8 (Heavy & Severe Service)
107,500
        
157,200
 
Total Industry
177,400
        
232,700
 
Order receipts:  U.S. & Canada (Units)

87
Traditional U.S. and Canada Retail Sales
Class 6 –
8 Industry Landscape
Economic uncertainty about 2009
and 2010:
•
2009 no longer the peak
•
2010 no longer the trough
Reality:
•
Age of fleet increasing
•
Fuel prices coming down
2nd half of 2009 will determine total industry size
Industry
FY99
FY00
FY01
FY02
FY03
FY04
FY 05
FY06
FY 07
FY08
School Bus
33,800
33,900
27,900
27,400
29,200
26,200
26,800
28,200
24,500
24,400
22,000
24,000
Class 6-7 - Medium
126,000
129,600
96,000
72,700
74,900
99,200
104,600
110,400
88,500
59,600
56,000
64,000
Combined Class 8 (Heavy & Severe Service)
286,000
258,300
163,700
163,300
159,300
219,300
282,900
316,100
206,000
160,100
166,000
168,000
Total Industry Demand
445,800
421,800
287,600
263,400
263,400
344,700
414,300
454,700
319,000
244,100
244,000
256,000
Navistar Order Receipt Share*
NA
NA
NA
NA
NA
23.7%
26.8%
29.8%
30.7%
33.1%
*U.S. and Canada Class 6-8 (includes U.S. military)
Historical Information
FY 09
Guidance
Current
Actual
United States and Canadian Class 6-8 Truck Industry -  Retail Sales Volume

88
SEC Regulation G
The above non-GAAP financial measures are unaudited and reflect a 2007 change in segment reporting methodology. This presentation is not in accordance with, or an alternative for, U.S. generally accepted
accounting principles (GAAP). The non-GAAP financial information presented herein should be considered
supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance
with GAAP.
However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our GAAP
reporting by identifying items that may not be related to the core manufacturing business.
Management often uses this information to assess and measure the performance of our operating segments. We have
chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving
effect to the non-GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance.
DEBT
YE 2005
YE 2006
YE 2007
YE 2008
(in millions)
Manufacturing operations
January 2007 Loan Facility (Libor + 325 matures January 2012) 
-
$             
-
$             
1,330
$     
1,330
$     
Bridge Loan Facility (Libor + 500)
-
               
1,500
       
-
               
-
               
Financing arrangements and capital lease obligations 
408
          
401
          
369
          
306
          
6.25% Senior Notes
400
          
-
               
-
               
-
               
9.375% Senior Notes
393
          
-
               
-
               
-
               
7.5% Senior Notes
249
          
15
            
15
            
15
            
Majority owned dealership debt
245
          
484
          
267
          
157
          
4.75% Subordinated Exchangeable Notes, due 2009
202
          
1
              
1
              
1
              
2.5% Senior Convertible Notes
190
          
-
               
-
               
-
               
9.95% Senior Notes
13
            
11
            
8
              
6
              
Other
24
            
60
            
39
            
19
            
Total manufacturing operations debt
2,124
       
2,472
       
2,029
       
1,834
       
Financial services operations  
Borrowing secured by asset-backed securities, at variable rates, due serially through 2011
2,779
$     
3,104
$     
2,748
$     
2,076
$     
Bank revolvers, variable rates, due 2010
838
          
1,426
       
1,354
       
1,370
       
Revolving retail warehouse facility, variable rates, due 2010
500
          
500
          
500
          
500
          
Commercial Paper (Mexican Finance Subsidary)
-
               
28
            
117
          
162
          
Borrowing secured by operating and finance leases
148
          
116
          
133
          
132
          
Total financial services operations debt
4,265
$     
5,174
$     
4,852
$     
4,240
$     
Cash & Cash Equivalents
YE 2005
YE 2006
YE 2007
YE 2008
Manufacturing non-GAAP (Unaudited)
776
$        
1,078
$     
716
$        
775
$        
Financial Services non-GAAP (Unaudited)
53
            
79
            
61
            
86
            
Consolidated US GAAP (Audited)
829
$        
1,157
$     
777
$        
861
$        
(Audited)

89
SEC Regulation G
The above non-GAAP financial measures are unaudited and reflect a 2007 change in segment reporting methodology. 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.
FY 2006
($Billions)
FY 2007
($Billions)
FY 2008
($Billions)
As Reported
As Reported
As Reported
Revenues
$14
$12
$15
$15
$16
($Millions)
($Millions)
($Millions)
Manufacturing Segment Profit
$838
$426
$1,114
$1,000
$1,050
$750
$800
Asset Impairment Charges & Related Costs*
NA
NA
($395)
Manufacturing Segment Profit
$838
$426
$719
$1,000
$1,050
$750
$800
Sub total - Below the line range:
($443)
($499)
($528)
($500)
($330)
Consolidated Income Before Income Tax
$395
($73)
$191
$410
$460
$1,100
$1,270
$160
$210
Taxes Benefit (Expense)
($94)
($47)
($57)
($40)
($50)
($40)
($50)
Net Income (Loss)
$301
($120)
$134
$370
$410
$120
$160
Diluted EPS
$4.12
($1.70)
$1.82
$5.10
$5.60
$1.65
$2.20
Memo - Professional fees included above in
corporate items:
($70)
($224)
($154)
($40)
($30)
($30)
($20)
($40)
($30)
*Related to reductions in Ford engine volumes
$1,600
FY 2009
($Billions)
FY 2009
($Billions)
Goal @ 244K to
256K unit
industry -
Current
Guidance
Original Goal @
414.5K unit
industry
$15+
($590)
Full Year
FY 2009
($Billions)
Goal @ 244K to
256K unit
industry -
Implied
Guidance
$15+
($Millions)
NA
($Millions)
NA
($590)
($Millions)
NA
$1,600