Peterbilt Motors Model 320 Hydraulic Launch Assist Peterbilt Research and Development 4/21/2017 Peterbilt Motors Model 320 Hydraulic Launch Assist Good afternoon ladies and gentlemen. This time last year I was pleased to stand before you and tell you about the hybrid history of Peterbilt Motors. You were also allowed to drive examples of our medium-duty hybrid electric and heavy duty hybrid hydraulic units. Today I am pleased to tell you we are currently well into a fleet test program of both of those units, and hope to have updates on how they are performing to you soon. This year in addition to a quick overview of our hybrid products, for those of you here for the first time, I would like to focus a little more on our heavy-duty hybrid applications. (CLICK) Paccar Proprietary and Confidential Data

Peterbilt Research and Development 4/21/2017 Natural Gas Benefits Good near term solution for lower emissions, but for only a couple years (2010) Landfill’s have the ability to produce own fuel Reduces demand for foreign oil Peterbilt / Cummins Westport LNG Trucks Peterbilt has just started a fleet trial with the Houston Advanced Research Center. This program is fielding 12 of these trucks, with the first four going to Waste Management in Houston. The truck you’ll see and drive at the show is the first of these units. To align with the production launch of these units next year, we encourage you to include them in budget process now. (CLICK) Paccar Proprietary and Confidential Data

Natural Gas Challenges Peterbilt Research and Development 4/21/2017 Natural Gas Challenges Lower energy density requires numerous CNG or expensive LNG tanks Lower acceleration vs. horsepower Extensive infrastructure for delivery Special provisions for servicing Higher initial procurement and maintenance cost Peterbilt has just started a fleet trial with the Houston Advanced Research Center. This program is fielding 12 of these trucks, with the first four going to Waste Management in Houston. The truck you’ll see and drive at the show is the first of these units. To align with the production launch of these units next year, we encourage you to include them in budget process now. (CLICK) LNG Refueling Station Paccar Proprietary and Confidential Data

Peterbilt Research and Development 4/21/2017 Emissions Reduction Particulates (g/kWh) By 2010 Diesel Engines will be as clean as natural gas 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 1991 2002 1998 1994 2010 2007 1 2 3 4 5 6 7 NOX (g/kWh) Paccar Proprietary and Confidential Data

Peterbilt Research and Development 4/21/2017 HLA Benefits Reduces emissions by launching the vehicle using pure hydraulic or blended power Regenerative braking reduces brake wear Lower maintenance cost Reduces particulate matter emissions from brake dust. Improved fuel economy reduces demand for foreign oil Technology and trucks developed in Denton, Texas Peterbilt has just started a fleet trial with the Houston Advanced Research Center. This program is fielding 12 of these trucks, with the first four going to Waste Management in Houston. The truck you’ll see and drive at the show is the first of these units. To align with the production launch of these units next year, we encourage you to include them in budget process now. (CLICK) Paccar Proprietary and Confidential Data

How does the HLA System work? Peterbilt Research and Development How does the HLA System work? 4/21/2017 Regeneration Mode During braking, the vehicle’s kinetic energy drives the pump/motor as a pump, transferring hydraulic fluid from the low pressure reservoir to the high pressure accumulator. The fluid compresses nitrogen gas in the accumulator and pressurizes the system. Launch Assist Mode During acceleration, fluid in the high pressure accumulator is metered out to drive the pump/motor as a motor. The system propels the vehicle by transmitting torque to the driveshaft. The core of the hydraulic hybrid is Eaton’s Hydraulic Launch Assist System. (click) The system provides 380 horsepower (CLICK) and 2550 ft-lbs of torque. Similar to hybrid electrics, all this power is available at 0 rpm. Paccar Proprietary and Confidential Data

Peterbilt Research and Development Hydraulic Launch System 4/21/2017 Reservoir Pump/Motor Transfer case 380 Horsepower 2550 Ft-lbs Torque Drive shaft Coupling The core of the hydraulic hybrid is Eaton’s Hydraulic Launch Assist System. (click) The system provides 380 horsepower (CLICK) and 2550 ft-lbs of torque. Similar to hybrid electrics, all this power is available at 0 rpm. Filter High-pressure accumulator Paccar Proprietary and Confidential Data

Peterbilt Research and Development 4/21/2017 Test Data Peterbilt 320 chassis 63,000lb ( 28.5 Tonne ) GVW CAT C-10 315 hp engine Allison 4560 5-speed automatic transmission 100 feet ( 30 metres ) between stops ABS braking system Peterbilt has just started a fleet trial with the Houston Advanced Research Center. This program is fielding 12 of these trucks, with the first four going to Waste Management in Houston. The truck you’ll see and drive at the show is the first of these units. To align with the production launch of these units next year, we encourage you to include them in budget process now. (CLICK) Paccar Proprietary and Confidential Data

Peterbilt Research and Development 4/21/2017 Fleet Trial Houston Advanced Research Center 12 Truck Fleet Evaluation Customers Waste Management (4) City of Houston (2) City of Denver, CO (1) City of Dallas (4) City of Denton (1) Peterbilt has just started a fleet trial with the Houston Advanced Research Center. This program is fielding 12 of these trucks, with the first four going to Waste Management in Houston. The truck you’ll see and drive at the show is the first of these units. To align with the production launch of these units next year, we encourage you to include them in budget process now. (CLICK) Paccar Proprietary and Confidential Data