Slide Presentation for Second Quarter Financial Results Web Cast

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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.

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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.

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.

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10,000

20,000

30,000

40,000

50,000

60,000

70,000

2Q09

2Q10

All Other

U.S. and Canada Ford

2010 2Q Information

$2,743**

26,400

37,500

63,900

56,100

$2,808

* Excludes 1,500 units from BDT (F650 & F750) consolidation ** 2010 Q2 revenue includes ~$300 million of BDT/BDP revenue due to consolidation

55,900

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2Q09

2Q10

Base

Base:

Increase

primarily

due to

NA Truck

Military

N.A.Ford

N.A. Ford

5,000

10,000

15,000

20,000

25,000

2Q09

2Q10

What we have said:

•

Industry –

Retail Sales

–

Half 2010 will be same as end of

2009

–

Half 2010 should be stronger

than 1

Half; 3Q 2010 will be down

with a truck recovery beginning in

4Q 2010

•

Production

16,400

19,900*

NYSE: NAV

2010 Q2 Information:

Profitable at all points in the cycle

$87

$149

$20

$40

$60

$80

$100

$120

$140

$160

2Q09

2Q10

$0.16

$0.42

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

2Q09

2Q10

$21

$20

$10

$15

$20

$25

$30

$35

$40

2Q09

2Q10

–

excludes

income

attributable

non-controlling

interests

$13M

2010 2Q: $149

2009 2Q: $87

B/(W): $62

•

Improved core

business

•

Reduced

military

•

Reduced Ford

•

Brazilian Cost

recovery (VAT)

2010 2Q: $0.42

2009 2Q: $0.16

B/(W): $0.26

Tax benefit:$18

million

2010 2Q: $20

2009 2Q: $21

B/(W): ($1)

•

Annual incentive

expense increased

by ($47) million

•

Retiree costs

decreased by $12

million

•

Interest expense

increased by ($16)

million

•

JV start up

expenses of ($13)

million

Note: This slide contains

non-GAAP

information,

please

see

the

Reg

appendix

for

detailed

reconciliation.

Positioned well for the future

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Our Emission Strategy Gives Us a

Competitive Advantage

61% Market Share

YTD2010

School

Bus

39% Market Share

YTD2010

34% Market Share

YTD2010

Severe

Service

Truck*

Heavy

Truck**

23% Market share

YTD2010

Medium

Truck

*Excludes U.S. Military deliveries

**Market share based on brand

Heavy

Sleeper

–

30%

Market Share

YTD Order

Receipts

Market

Full

Year

2009

2Q 2010

YTD

April

2010

YTD

April

Full Year

2010 Goal

School

Bus

61%

63%

61%

52%

60% +

Medium

35%

44%

39%

53%

40% +

Severe

Service

34%

35%

34%

48%

35% +

Heavy

25%

22%

23%

38%

25% _

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Purchase Consideration for EGR

and SCR Technology

How important are each of the following when it comes to

the decision to purchase an EPA 2010 compliant engine?

saying

very

important;

n=1,

165;

+/-

2.9%)

17.6% -

Undecided

75.4%

70.1%

59.6%

59.0%

44.2%

Fuel efficiency

Proven technology

(production

trucks/engines

have been proven

on-the-road)

Engine

optimization

Scheduled

maintenance

required by the

2010 technology

Weight added by

the 2010

technology

Online study developed by Quixote Group Research and was designed to support the efforts of the communication subcommittee of the North American heavy SCR stakeholder group.

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Our strategy was to reduce NOx

stages, which allowed us to generate

credits and minimize the technological

changes from 2007 to 2010

Proven Technology

Note: Euro V Emissions: 2gNOxg/kwhr or 1.5gNOxg/bhphr

Block

EGR

Cylinder Head

Fuel System

Air System

Euro V

90%

EPA 2007 –

1.1 NOx

55%

Euro VI

EPA 2010 -

0.5 NOx

0.8 NOx

What did we change:

What does this mean for

our customers:

•

Moved cooler

•

Increased fuel

pressures

•

Packaging and air flow

•

Single engine controller

•

Minimal changes to

improve reliability

•

Delivers same to

improved fuel economy

2010 Engine same as 2009

~10,000

EPA

“2007”

engines

field

with

over

1,100

unique

customers

38%

0.2

0.5

1.5

Value Proposition

What

changed

since

developed

the

original

ProStar

•

ProStar+

vs.

Original

ProStar

•

Weight

difference

MaxxForce

13L

vs.

ISX

(900 lbs)

(500 lbs)

Total

2010

ProStar+

Weight

Advantage

Note: Avoids liquid urea of 300 to 400 lbs

(1,400 lbs)

In addition we have avoided another

400 lbs since we don’t use Urea -SCR

What did we change:

What does this mean for our

customers:

•

Improved NVH

•

Jake Brake option

•

Enhanced interior

•

Ultra shift transmission

•

Performance equal or greater

than 15L

•

Increase fuel economy

•

Lower cost

•

Emissions compliance on OEM

Four years ago we launched

ProStar

;

which

has

outsold

all other trucks in its class

over the past 12 months.

Heavy

Truck

FY07

15%

FY08

19%

FY09

25%

YTD10

23%

22% Market Share

2Q10

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$2 Billion Sustainable

Navistar Defense

•

Leverages

base

business

•

Continued

strength

Augment Sustainable base with Selective

Opportunities

Engineering

Manufacturing

Sustainment

Enablers

What’s happened since we talked to you last:

•

May 4 -

$89 million for TACOM vehicles for the Afghan

National Army

•

May

$102

million

for

MaxxPro

Dash

MRAP

capability

insertion

•

May 26 -

$61 million to support Foreign Military Sales (FMS)

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

FY 2008

FY 2009

FY 2010

Guidance

$2 billion sustainable

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Future Opportunities

•

MaxxPro

DXM Upgrade

via Rolling Chassis

Other Capability Insertions

•

Potential long-term

MRAP parts contract

Canada SMP

DXM Rolling Chassis

HMMWV Recap

•

Canada standard military

pattern

Teaming with Tatra

1,500 units

Proposals due fall 2010

Vehicle sustainment

Upcoming programs

•

HMMWV Recap

•

Seven JLTV prototype units and four companion

trailers delivered for TD Phase testing

•

JLTV prototype units and companion trailer to be

delivered to Australia for testing in June

7000-MV Opportunities

•

Afghan National Army and Police

•

Iraq MoD

and MoI

NYSE: NAV

Manufacturing Cash Update

Note: This slide contains non-GAAP information, please see the Reg

G in appendix for detailed reconciliation.

($ millions)

January 31, 2010 ending manufacturing cash and marketable securities

$668

Adjusted manufacturing EBITDA

$113

Change in net working capital

($58)

Capital expenditures

($38)

Other cash flows

($55)

April 30, 2010 manufacturing cash and marketable securities³

$630

FY 2010 Forecast

Manufacturing EBITDA

+ + +

Net Working Capital

NFC Trade Receivable

+ +

2010 Transition Inventory

+ +

Capital & Investment Spending

Forecasted October 31, 2010 ending manufacturing cash and marketable securities

$1,000 -

$1,200

Includes the add back for depreciation of equipment leased to others

NWC = A/R, Inventory, Other Current Assets, A/P & Other Current Liabilities

Includes cash from the consolidation of minority interests

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Below the Line Actions

•

Funded 95% in 2007

–

Minimal service cost for actives

•

Asset returns > liability interest

•

Minimal cash contributions

–

2008

market

impacts

–

negative

impact

on assets

•

Asset returns < liability interest

•

Amortize the investment losses

•

Expanded cash contributions

•

Asset

returns

have

exceeded

assumed annual returns

(fiscal YTD: 12.7%)

–

Relief by extending funding requirements

•

Historically expense > $100

million annually

–

Medicare

advantage

lowered

liability

~$500 million (2007-2009)

–

Medicare Part D -

lowered liability by

$340 million (2010)

–

Health care reform –

increased liability

by ~$100 million (2010)

•

Long

term

objective:

Provide

good health care coverage at an

affordable cost

–

Wellness programs –

promote healthy

living

–

Government supported programs

–

Cost control

Pension

OPEB

2010 Guidance

We continue to invest today, to ensure the future

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Manufacturing Segment Profit is not in accordance with, or an alternative for, U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information presented herein should be considered supplemental to, and not as a

substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and

therefore we use it to supplement our GAAP reporting by identifying items that may not be related to the core manufacturing business. Management often uses this information to assess and measure the performance of our operating

segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the

non-GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance.

6/9/2010

Guidance

U.S. and Canada Industry

195,000 –

215,000

($Billions)

Sales and revenues, net

$13.2 –

$13.7

($Millions)

Manufacturing segment profit*

800 –

850

Below the line items

(582) –

(586)

Income excluding income tax

218 –

264

Income tax expense

(20) –

(30)

Net

income

attributable

Navistar

International

Corp.

(NIC)

$198 –

$234

Diluted earnings per share ($'s) attributable to NIC

$2.75 –

$3.25

Weighted average shares outstanding: diluted (millions)

~ 72.5

* Includes: Net income attributable to non-controlling interests

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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

April YTD

Bus (School)

57%

48%

58%

55%

56%

60%

61%

66%

61%

60%

63%

61%

Medium (Class 6-7)

34%

35%

39%

35%

36%

30%

39%

33%

39%

35%

33%

44%

39%

Heavy (LH & RH)

16%

15%

19%

25%

19%

24%

23%

29%

24%

25%

23%

22%

23%

Severe Service

28%

26%

29%

27%

32%

36%

33%

34%

35%

34%

Combined Class 8

20%

19%

21%

26%

22%

26%

27%

30%

27%

28%

26%

Combined Market Share

27%

28%

32%

29%

30%

35%

36%

34%

31%

35%

33%

2009

2010

Market Share –

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

2008

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Truck Chargeouts

Note: Information shown below is based on Navistar’s fiscal year

Fiscal year 2008

1Q08

2Q08

3Q08

4Q08

Full Year 2008

BUS

3,100

3,300

2,700

4,400

13,500

MEDIUM

3,700

6,300

5,800

4,500

20,300

HEAVY

2,600

3,900

4,500

7,800

18,800

SEVERE

2,400

3,400

3,300

3,700

12,800

TOTAL

11,800

16,900

16,300

20,400

65,400

MILITARY (U.S. & Foreign)

1,600

2,200

2,300

2,600

8,700

EXPANSIONARY

5,900

8,100

8,400

5,700

28,100

WORLD WIDE TRUCK

19,300

27,200

27,000

28,700

102,200

Fiscal year 2009

1Q09

2Q09

3Q09

4Q09

Full Year 2009

BUS

2,700

3,100

3,500

4,500

13,800

MEDIUM

3,200

3,400

2,600

3,800

13,000

HEAVY

6,100

3,200

4,500

5,300

19,100

SEVERE

2,800

2,700

2,800

2,700

11,000

TOTAL

14,800

12,400

13,400

16,300

56,900

MILITARY (U.S. & Foreign)

2,500

2,100

1,200

2,000

7,800

EXPANSIONARY

2,400

1,900

2,300

4,500

11,100

WORLD WIDE TRUCK

19,700

16,400

16,900

22,800

75,800

Fiscal year 2010

1Q10

2Q10

3Q10

4Q10

Full Year 2010

BUS

3,100

6,200

MEDIUM

3,900

5,300

9,200

HEAVY

5,200

4,600

9,800

SEVERE

3,100

3,000

6,100

TOTAL

15,300

16,000

31,300

MILITARY (U.S. & Foreign)

900

1,000

1,900

EXPANSIONARY

3,900

4,400

8,300

WORLD WIDE TRUCK

20,100

21,400

41,500

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World Wide Engine Shipments

Navistar

1st Q

2nd Q

3rd Q

4th Q

Full Year

Ford

60,000

56,200

65,400

53,500

235,100

Other OEM's (All Models)

21,000

26,400

29,100

27,700

104,200

Engine Shipments to Truck Group

23,100

12,100

13,700

16,500

65,400

Total Shipments

104,100

94,700

108,200

97,700

404,700

Navistar

1st Q

2nd Q

3rd Q

4th Q

Full Year

Ford

47,000

55,300

25,200

24,500

152,000

Other OEM sales

25,900

31,500

34,100

37,100

128,600

Intercompany sales

12,900

15,700

20,000

16,300

64,900

Total Shipments

85,800

102,500

79,300

77,900

345,500

Navistar

1st Q

2nd Q

3rd Q

4th Q

Full Year

Ford

14,100

29,000

26,200

44,300

113,600

Other OEM sales

22,400

22,300

24,600

29,100

98,400

Intercompany sales

14,400

12,600

12,800

17,500

57,300

Total Shipments

50,900

63,900

63,600

90,900

269,300

Navistar

1st Q

2nd Q

3rd Q

4th Q

Apr. YTD

OEM sales - South America

31,000

34,600

65,600

Ford sales - U.S. and Canada

24,700

200

24,900

Other OEM sales

1,700

3,600

5,300

Intercompany sales

16,400

17,700

34,100

Total Shipments

73,800

56,100

129,900

2010

2008

World Wide Engine Shipments

2007

2009

NYSE: NAV

Order Receipts –

U.S. & Canada

Percentage

2010

2009

Change

2010

2009

Change

1,900

2,800

(900)

(32)

3,500

6,000

(2,500)

(42)

2,300

2,500

(200)

(8)

9,400

5,300

4,100

Class 8 heavy trucks

6,900

3,700

3,200

13,100

9,100

4,000

Class 8 severe service trucks

2,700

2,500

200

6,100

4,900

1,200

13,800

11,500

2,300

32,100

25,300

6,800

9,600

6,200

3,400

19,200

14,000

5,200

(A) The three and six months ended April 30, 2009 have been recast to exclude 200 and 1,400 units, respectively, related to U.S. military contracts to reflect our new methodology for categorization

of "traditional" units

Total "Traditional" Markets

Combined Class 8 (Heavy and Severe Service)

"Traditional" Markets

School buses

Class 6 and 7 medium trucks

Six Months Ended

April 30,

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

Three Months Ended

April 30,

NYSE: NAV

NFC Liquidity Remains Strong

Retail Notes

Bank Facility

•

As of April 30, 2010, NFC had total available undrawn committed funding of more than $500M

–

Sold $600M of wholesale floor plan notes to support dealer inventory funding since November

–

Refinanced bank revolver in December

•

In May, NFC completed the sale of $881M of asset-backed retail notes in a 144-A transaction

•

In March, NFC announced strategic alliance with GE Capital for retail program in the U.S.

–

NFC will need less liquidity to support new retail sales

–

NFC’s liquidity will also be enhanced as existing notes pay off

•

NFC stabilized and improved earning profile in 2010

•

$500M revolving warehouse (TRIP)

to be paid off in June 2010

•

New $881M 144-A transaction in May

–

Restructured older conduit

transactions

–

Increased liquidity

–

Decreased costs

•

On balance sheet

•

$815M facility

–

Funding for retail notes,

wholesale notes, retail

accounts, and dealer open

accounts

–

Matures December 2012

On balance sheet

•

Situation as of April 30, 2010

–

~$1.1B funding facility

(NFSC)

–

$500M available

•

NFSC terms

–

Bank conduit portion renewed

August 2009

–

Public portions mature

January 2012 and October

2012

Off balance sheet

NYSE: NAV

Frequently Asked Questions

Q1:

What should we assume for capital expenditures in 2010?

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?

Dealcor debt is comprised of wholesale (floor plan) financing and also retail financing on lease and

rental fleets for company owned dealers.

Q3:

How many Dealcor dealers did you have as of April 30, 2010?

Of our 279 primary NAFTA dealers, we have ownership interest in 14 DealCor dealers as of

April 30, 2010.

We expect to further reduce our DealCor dealers before October 31, 2010.

Q4:

What percentage of truck purchases do you fund?

We consistently fund about 95% of floor plan inventory for our dealers in the U.S. and approximately

9-12% of retail purchases.

Q5:

When is the next refinancing due at NFC?

Our VFN facility, which funds dealer inventory, matures in August of 2010. We are currently in

discussion to effectively renew this facility.

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Frequently Asked Questions

Q6:

Are there any requirements for NFC leverage?

NFC is compliant with our revolver leverage covenant of 6 to 1. This ratio calculation excludes qualified

retail and lease securitization debt.

Q7:

How do you fund your wholesale business?

We primarily finance our wholesale portfolio in traditional private or public securitizations, and through

our bank facility.

Q8:

How are your dealers doing?

We think our dealers, which have always been one of our strengths, are well positioned. We

traditionally have not had any significant dealer losses and expect that trend to continue in the future.

Q9:

What kind of rates do you charge your dealers and customers?

Generally, our rates vary (those with higher credit risk have always had to pay higher interest rates)

and are usually in line with the market.

Q10:

How is your NFC portfolio performing?

The portfolio is performing as we would expect.

Repossessions, past due accounts and losses peaked

in 2008 and have continued to gradually show improvement, consistent with prior cycles.

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Frequently Asked Questions

Q11:

What is your total amount of capacity at NFC?

Total availability in our funding facilities is more than $500 million as of April 30, 2010.

Q12:

How does your NFC derivative expense compare to last year?

Our derivative expense for Q2 2010 was $1 million, which compares favorably to our derivative

expense of $9 million for the three months ended April 30, 2009.

Q13:

How

your

repossession

percentages

compare

the

overall

size

your

portfolios?

Loan repossessions as a percent of retail balances were approximately 3.3% (annualized) for Q2 2010.

Q14:

What is the current Joint Light Tactical Vehicle (JLTV) program status?

Navistar and BAE delivered 7 JLTV units and four trailers for testing on May 3 as part of the 27-month

JLTV Technology Development (TD) phase. Australia will also be receiving test units as part of the TD

phase.

Q15:

Does Navistar plan to participate in the Ground Combat Vehicles program?

have

been

looking

into

opportunities,

but

this

program

favors

tracked

vehicles.

Q16:

What are your margins for military vehicles?

We do not break margins out specific to our military vehicles. These numbers are reported as part of

our Truck Group financials.

NYSE: NAV

Frequently Asked Questions

Q17:

What

the

status

any

MaxxPro

Dash

rolling

chassis

orders?

At this time, we stand ready to support any needs from the military should they choose to retrofit the

remainder of the MaxxPro

fleet with DXM independent suspension.

Q18:

What are the 2010 emissions requirements?

The

rules

allow

manufacturers

0.5

NOx

they

cleaned

the

environment

earlier

with

advanced

technology;

manufacturers

need

0.2

NOx

they

chose

not

introduce

advanced

technologies earlier.

Q19:

What will Navistar do to meet the 0.2 NOx

emissions when its credits are depleted?

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

in-cylinder

solutions

along

with

application-specific

solutions

such

the

Amminex

metal

ammine-based

NOx

reductant

delivery

system

which

Navistar

announced

December

2009.

NYSE: NAV

Frequently Asked Questions

Q20:

How

much

net

operating

losses

remain,

and

why

there

still

valuation

allowance

against

deferred tax assets?

The Company has approximately $288 million of U.S. federal net operating losses available as of

October 31, 2009 to offset future taxable income. Applying a federal tax rate of 35%, these losses

have an undiscounted cash value of $101 million. In addition, the value of our state and foreign NOLs

are $82 million and $102 million, respectively, for a total value of tax-effected, undiscounted cash of

$285 million. (The difference from the reported balance is attributed to stock option accounting.)

A substantial portion of these NOL assets are subject to a valuation allowance. In addition to the

deferred tax assets attributable to the NOLs, we have other deferred tax assets arising from temporary

book-tax differences subject to a valuation allowance of $1.7 billion, for a total balance of deferred tax

assets subject to a valuation allowance of $2 billion. Under U.S. GAAP rules, when the Company is

able to demonstrate sufficient earnings (both historically and in the future) to absorb these future

deductions, the Company will release these valuation allowances . When we release the valuation

allowances, $72 million will impact shareowner’s equity and the balance will favorably impact net

income.

NYSE: NAV

Frequently Asked Questions

Q21:

How has The Worker, Homeownership, and Business Assistance Act of 2009 affected Navistar?

This legislation provides an opportunity to carry back alternative minimum tax net operating losses

from the Company’s 2010 fiscal year and to receive a refund of alternative minimum tax payments

made in the prior five fiscal years. The Company intends to take advantage of this opportunity to the

fullest extent allowable by law.

Q22:

How will the recent tax legislative proposals impact Navistar, if enacted?

In the near term we would not anticipate a material impact on our financial statements due to the fact

that we currently have a full valuation allowance against a large portion of our deferred tax assets and

are still utilizing U.S. net operating losses. We continue to monitor these developments and would

address any such tax changes if ultimately adopted.

NYSE: NAV

Frequently Asked Questions

Q23:

What makes up our consolidated tax expense?

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

our

U.S.

and

Canadian

operations.

Consequently, our tax expense in those jurisdictions is generally limited to current state or local taxes

and the impact of alternative minimum taxes. Our Brazilian and Mexican operations are profitable and

as a result we accrue taxes in those jurisdictions. This combination of factors causes our overall

consolidated effective tax rate to be fairly low.

Q24:

What contributed to the $10 million decrease in income tax expense in Q2?

During

the

company

resolved

several

outstanding

tax

audits

the

U.S.,

Canada

and

Mexico

which

generated a $10 million favorable result as compared to amounts previously reserved. There was no

additional expense in the period as a result of lower projected foreign taxes and increased domestic

earnings.

NYSE: NAV

Frequently Asked Questions

Q25:

Your

tax

footnote

the

10K

discloses

gross

deferred

tax

assets

$2.2

billion.

How

will

those

assets be used to offset future taxable income?

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

made

the

future.

these

payments

are

made,

the

Company

will

realize

tax

deductions

the

extent of its future taxable income.

Q26:

What is your expected 2010 pension and OPEB GAAP expense?

Assuming no further containment actions and no curtailment events, we anticipate 2010 pension and

OPEB GAAP expense of approximately $185 to $200 million. In 2009, pension and OPEB GAAP

expense was $233 million.

Q27:

What are your expected 2010 and beyond pension funding requirements?

Current forecasts indicate that we may need to contribute approximately $150 million in 2010.

Assuming

further

actions

Congress,

from

2011

through

2013,

the

Company

will

required

contribute

least

$256

million

per

year

the

plans

depending

asset

performance

and

discount

rates in the next several years.

NYSE: NAV

Frequently Asked Questions

Q28:

What causes the variance between manufacturing cash interest payments and GAAP

interest expense?

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.

NYSE: NAV

Impact of Ford Settlement on 2009

Business

Impact

Settlement

•

Loss of U.S. automotive customer

•

Less intensive capital/product requirements

•

Restructured business

•

Impact of increased equity stake in BDT & BDP

Note: For additional

information, please see

footnote 2, Ford settlement and

related charges, of our 10Q

filed on June 8, 2010.

Settlement and Related Restructuring —

2009 PBT Impact

(in millions)

Full Year

Cash

200

Warranty

Restructuring charges

(58)

(4)

(59)

Other related income (expense)

(27)

(35)

(12)

(56)

190

(32)

(16)

160

Actual

NYSE: NAV

($ in millions)

Note: This slide contains non-GAAP information, please see the Reg

G in appendix for detailed reconciliation

FYTD Manufacturing Cash Flow

Beginning Mfg. Cash

Balance

Fiscal 2007

Fiscal 2008

Fiscal 2009

YTD -

FY 2010

October 31, 2006

$1,214

October 31, 2007

$722

October 31, 2008

$777

October 31, 2009

$1,152

Approximate Cash Flows:

From Operations

($231)

$414

$514

($307)

Dividends from NFC

$400

$15

From Investing / (Cap Ex)

($200)

($220)

($284)

($145)

From Financing / (Debt Pay Down)

($480)

($133)

$56

($66)

Exchange Rate Effect

$19

($21)

($4)

Net Cash Flow

($492)

$55

$295

($522)

Blue Diamond Consolidation

$80

Ending Mfg. Cash

Balance:

October 31, 2007

$722

October 31, 2008

$777

October 31, 2009

$1,152

April 30, 2010

$630

Cash = Cash, Cash Equivalents & Marketable Securities

Includes cash from the consolidation of minority interests

NYSE: NAV

SEC Regulation G

DEBT

April 30,

2010

October 31,

2009

(in millions)

Manufacturing operations

8.25%

Senior

Notes,

due

2021,

net

unamortized

discount

$36

and

$37

million

the

respective dates

964

963

3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of

$104 and $114 at the respective dates

466

456

Debt of majority owned dealership

148

Financing arrangements and capital lease obligations

241

271

Other

Total manufacturing operations debt

1,839

1,861

Less: Current portion

(201)

(191)

Net long-term manufacturing operations debt

1,638

1,670

Financial services operations

Asset-backed debt issued by consolidated SPEs, at variable rates, due serially through 2016

941

1,227

Bank

revolvers,

fixed

and

variable

rates,

due

dates

from

2010

through

2015

1,074

1,518

Revolving retail warehouse facility, at variable rates, due 2010

500

Commercial Paper, at variable rates, due serially through 2010

Borrowing secured by operating and finance leases, at various rate, due serially through 2016

131

134

Total financial services operations debt

2,706

3,431

Less: Current portion

(805)

(945)

Net long-term financial services operations debt

1,901

2,486

Cash & Cash Equivalents

April 30,

2010

October 31,

2009

Manufacturing non-GAAP (Unaudited)

455

1,152

Financial Services non-GAAP (Unaudited)

Consolidated US GAAP (Audited)

508

1,212

Manufacturing Cash & Cash Equivalents non-GAAP (Unaudited)

455

1,152

Manufacturing Marketable Securities non-GAAP (Unaudited)

175

Manufacturing Cash, Cash Equivalents & Marketable Securities non-GAAP (Unaudited)

630

1,152

*Includes cash and cash equivalents from consolidating Blue Diamond Truck and Blue Diamond Parts

Unaudited

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.

NYSE: NAV

SEC Regulation G

Three Months Ended April 30th, 2010

($ millions)

Net income (loss) attributable to NIC

$30

Add back income taxes

($10)

Income before income taxes

$20

Less equity income from financial service operations

($16)

Income before income taxes and equity income from financial service operations

Add back manufacturing interest expense

$37

Manufacturing

EBIT

$41

Add back manufacturing depreciation and amortization

$72

Adjusted manufacturing

EBITDA

$113

Includes debt issuance costs/discount amortization

Navistar International Corporation (Manufacturing

operations with financial services operations on a pre-tax

Includes depreciation of equipment leased to others and excludes debt issuance cost/discount amortization

NYSE: NAV

SEC Regulation G –

Fiscal Year Comparison

Future

2009

*Includes net income attributable to non-controlling interests

U.S. and Canada Industry

414,500

350,000

($billions)

Sales and revenues, net

$ 15 +

$ 20 +

($millions)

Manufacturing segment profit*

$ 1,600

Below the line items

Income excluding income tax

Income tax expense

(298)

Net Income attributable to Navistar International Corporation (NIC)

Diluted earnings per share ($'s) attributable to NIC

$12.31

Weighted average shares outstanding: diluted (millions)

Original Target

@ 414.5k Industry

Revised Target

@ 350k Industry

$ 1,780

(590)

~ 72.5

$892

~ 72.5

(500)

1,100

(275)

$825

$11.46

1,190

Manufacturing Segment Profit is not in accordance with, or an alternative for, U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information presented

herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP

reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our GAAP reporting by identifying

items that may not be related to the core manufacturing business. Management often uses this information to assess and measure the performance of our operating segments. We

have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate

the results of operations giving effect to the non-GAAP adjustments shown in the above reconciliations and to provide an additional measure of performance.

NYSE: NAV

SEC Regulation G –

Quarterly Comparison

2010 Q2

2009 Q2

2010 Six Months

2009 Six Months

As Reported With

Impacts

As Reported With

Impacts

As Reported With

Impacts

As Reported With

Impacts

($billions)

Sales and revenues, net

2.7

2.8

5.6

5.8

($millions)

Manufacturing segment profit

149

317

494

Below the line items

(129)

(66)

(272)

(246)

Income (loss) excluding income tax

248

Income tax benefit (expense)

(9)

(2)

Net Income (loss) attributable to Navistar International Corporation

246

Diluted earnings (loss) per share ($'s) attributable to Navistar International Corporation

0.42

0.16

0.65

3.44

Weighted average shares outstanding: diluted (millions)

72.8

71.3

72.4

71.5

This presentation is not in accordance with, or an alternative for, U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information presented herein should be considered

supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the

reconciliation above, provides meaningful information and therefore we use it to supplement our GAAP reporting by identifying items that may not be related to the core manufacturing business. Management

often uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to

enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the above reconciliations and to provide an additional

measure of performance.