STATEMENT OF COMPANY BUSINESS PACCAR is a global technology company that designs and manufactures premium  quality light, medium and heavy duty commercial vehicles sold worldwide under  the Kenworth, Peterbilt and DAF nameplates. PACCAR designs and manufactures  diesel engines for use in its own products and for sale to third party manufacturers  of trucks and buses. PACCAR distributes aftermarket truck parts to its dealers  through a worldwide network of Parts Distribution Centers. Finance and leasing  subsidiaries facilitate the sale of PACCAR products in many countries worldwide.  PACCAR manufactures and markets industrial winches under the Braden, Carco  and Gearmatic nameplates. PACCAR maintains exceptionally high standards of  quality for all of its products: they are well engineered, highly customized for  specific applications and sell in the premium segments of their markets, where  they have a reputation for superior performance and pride of ownership. CONTENTS  Financial Highlights  Message to Shareholders  PACCAR Operations  Financial Charts  Stockholder Return Performance Graph  Management’s Discussion and Analysis  Consolidated Statements of Income  Consolidated Balance Sheets  Consolidated Statements of Cash Flows  Consolidated Statements of Stockholders’ Equity  Consolidated Statements of Comprehensive Income  Notes to Consolidated Financial Statements  Management’s Report on Internal Control Over Financial Reporting  Report of Independent Registered Public Accounting Firm on the Company’s Consolidated Financial Statements  Report of Independent Registered Public Accounting Firm on the Company’s Internal Control Over Financial Reporting  Selected Financial Data  Common Stock Market Prices and Dividends  Quarterly Results  Market Risks and Derivative Instruments  Officers and Directors  Divisions and Subsidiaries