 expectations by delivering the highest-quality products  and services in our history. PACCAR’s product quality continued to be recognized  as the industry leader in 2011. Kenworth earned the  J.D. Power Heavy Duty Customer Satisfaction award for  Dealer Service. Peterbilt earned honors in the Heavy  Duty Vocational category. Kenworth’s T700, powered by  the PACCAR MX engine, earned the American Truck  Dealers heavy-duty “Commercial Truck of the Year” award. Nearly 55% of PACCAR’s revenue was generated  outside the United States. The company has realized  excellent synergies globally in product development, sales  and finance activities, purchasing and manufacturing. DAF maintained its leadership in the tractor market  and achieved a record 15.5% share in the overall  European 15+ tonne market. The PACCAR MX engine  has been honored as best-in-class at the Shanghai Bus  Show five years in a row. Leyland Trucks is the United Kingdom’s leading truck manufacturer. Leyland earned two prestigious  manufacturing awards in 2011 — the Shingo Bronze  Medallion and the “Business Development and Change  Award” at the annual Manufacturing Excellence Awards. PACCAR Mexico (KENMEX) had a record year as the  Mexican economy improved and truck fleets increased  their purchases. Its manufacturing facility continues to  deliver outstanding product quality. PACCAR Australia achieved good results in 2011, as the country benefited from ongoing commodity  demand. The introduction of new Kenworth models  and expansion of the DAF product range in Australia  combined for a 20.4% heavy duty market share in 2011. AFTERMARKET CUSTOMER SERVICES  — PACCAR  Parts had a record year in 2011, as dealers and customers  embraced vehicle maintenance programs, integrated  customer logistics and billing systems. With sales of  $2.6 billion, PACCAR Parts is the primary source for  aftermarket parts and services for PACCAR vehicles, as  well as supplying parts for competitive brands to  PACCAR’s dealers around the world. Over six million  heavy duty trucks operate in North America and Europe,  and the average age of North American vehicles is  estimated to be seven years. The large vehicle parc and  aging industry fleet create excellent demand for parts  and service and moderate the cyclicality of truck sales. PACCAR Parts expanded its facilities to enhance  logistics performance to dealers and customers. PACCAR Parts continues to lead the industry with  technology that offers competitive advantages at  PACCAR dealerships. PACCAR Parts enhanced its TRP program, an all-brands merchandise initiative  targeted at competitors’ vehicles. PACCAR Parts’ new  Santiago, Chile, distribution center enhanced its business  with Andean customers. FINANCIAL SERVICES  — PACCAR Financial Services’  (PFS) conservative business approach, coupled with  PACCAR’s superb S&P credit rating of A+ and the  strength of the dealer network, enabled PFS to earn  excellent results in 2011 as worldwide financial markets  steadily improved. PACCAR issued $982 million in  medium-term notes at attractive rates during the year. The PACCAR Financial Services group of companies has  operations covering three continents and 21 countries. The global breadth of PFS and its rigorous credit  application process support a portfolio of nearly 145,000  trucks and trailers, with total assets of $9.4 billion that  earned a pretax profit of $236 million. PACCAR  Financial Corp. (PFC) is the preferred funding source in North America for Peterbilt and Kenworth trucks,  financing 24% of dealer Class 8 sales in the U.S. and  Canada in 2011. Interactive webcasts, strategically  located used truck centers and target marketing enabled  PFS to sell over 8,600 used trucks worldwide. PACCAR Financial Europe (PFE) completed its tenth  year of operation, focusing on the financing of new and  used DAF trucks. PFE provides wholesale and retail  financing for DAF dealers and customers in 16 European  countries and financed over 23% of DAF’s 6+ tonne  vehicle sales in 2011. PACCAR Leasing (PacLease) had a record year and  placed 6,700 new PACCAR vehicles in service in 2011. The North American lease market improved and  PacLease Europe benefited as the German truck market  strengthened. The PacLease fleet is over 32,000 vehicles.  PacLease represents one of the largest full-service truck  rental and leasing operations in North America and  continued to increase its market presence in 2011,  growing its global network to 500 locations.