EX-99.1 2 d376753dex991.htm SLIDE PRESENTATION Slide Presentation
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July 6, 2012
Next Generation Engine Technology Update
July 6, 2012
Exhibit 99.1


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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, 2011 and quarterly reports for fiscal 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.


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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.
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. Measures may also be adjusted to
exclude certain adjustments which are not considered to be part of our ongoing
business and are not representative of our underlying performance. 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 is in the appendix of this presentation.


Navistar Strategy
In-cylinder technology (ICT)
Air
Fuel
Control modules
Liquid-based after-treatment
Solid state after-treatment (EGNR)
Reformer
Hybrid of these technologies
Goal
of
$20
billion
in
Revenue
with $1.8 billion in Manufacturing
Segment Profit at 350K unit
industry
Global Emission Solutions
Note:
This slide contains non-GAAP information; please see the REG G for a
detailed reconciliation. 
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Global Emission Solutions
EGNR
Air
Fuel
Controls
Liquid-based after-treatment
ICT
Solid state after-treatment
Reformer


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Basket of Engine Technologies
Brazil:
Liquid-based after-treatment
& ICT+
U.S. & Canada:
13L ICT/ICT+
Australia:
ICT
China:
3.2L ICT
EGNR
India:
ICT
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ICT – in-cylinder technology
+ – ability to use hybrid of after-treatment solutions


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ICT+ Timing
Beginning early 2013 with 13L engine
15L to follow
ICT
+
Liquid based after-treatment
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13L
13L
15L
15L
DuraStar
®
4400 Euro V Truck


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Benefits of ICT+
Continue developing in-cylinder technology
Air/fuel/control modules
Incorporate liquid based after-treatment =
ICT+
Benefits of ICT+
Base engine stays the same
Significant fuel economy improvement
Capable of exceeding emission regulations


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Shared new technology path with EPA and CARB
Both supportive of direction
Reviewed status of NCPs and emission credits
Understand importance during transition
EPA and CARB willing to engage immediately in review of:
Engine performance
Certification time line
Discussions on maintaining uninterrupted sales during transition
Transition Plan


History of Environmental Leadership
First smokeless diesel engine
Natural gas partnerships
Only purpose-built electric vehicle
Collaboration
Red
Bull
Purchases
New
International
®
DuraStar
®
Hybrid Delivery Trucks
Trucks save 30%-40% fuel costs while reducing CO2 emissions
UPS, EPA, Eaton, Navistar Agree: “Hydraulic Hybrid
Vehicles Ready for Prime Time”
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Navistar Strategy
In-cylinder technology (ICT)
Air
Fuel
Control modules
Liquid-based after-treatment
Solid state after-treatment (EGNR)
Reformer
Hybrid of these technologies
Goal
of
$20
billion
in
Revenue
with $1.8 billion in Manufacturing
Segment Profit at 350K unit
industry
Global Emission Solutions
Note:
This slide contains non-GAAP information; please see the REG G for a
detailed reconciliation. 
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Q1:
While you are working toward a resolution with the EPA, what is the impact on your
financial situation and liquidity?
A:
Q2:
How long will the transition take, and what will be the impact to your cost structure?
A:
In the near term, this will require some additional product development in order to execute
the plan and some incremental costs to our products.  We do believe that with the
attributes
we
are
delivering
and
the
trends
in
the
market
place,
there
will
be
some
opportunity to offset these costs with pricing.  Long term, as we fully integrate these
technologies across our platforms, we expect to reduce our cost structure and expand our
margins.
Frequently Asked Questions
We are working diligently to create a path forward with the EPA, which we believe will bring
clarity to the market and help us execute our business plan and achieve our goals. At this
time, we believe it would be best to allow the process with the EPA to come to completion
before we comment further on our financial forecasts. As to liquidity, our current position
remains stable, and we believe we have access to additional financing sources if
appropriate.


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SEC Regulation G –
Manufacturing Segment Profit at Normalized Annual Rate
Target
U.S. & Canada Industry
350,000
Sales
and
revenues,
net
(in
billions)
$20 +
(in millions)
Net income (loss) attributable to Navistar International Corporation
$      892
Less: Financial services segment profit, Corporate and eliminations, and income taxes
(888)
Manufacturing segment profit
$   1,780