Medichem Congress Amsterdam September 9-11, 2008

1. William B. BunnVP, Health, Safety, Security & ProductivityThomas W. HesterbergDirector, Product Stewardship Innovation and Occupational Health Strategies for Sustainability at Navistar Medichem CongressAmsterdamSeptember 9-11, 2008 1

2. What is Sustainability? Sustainability is the ability to meet the needs of today's people and environment without compromising that of subsequent generations. 2

3. Social Environment Economic Three Pillars of Sustainability 3

4. Why be Sustainable? • Sustainability is good business • Reduce operating costs by cutting waste, energy usage and emissions • Help the environment and save money • Economics and business of sustainability • Working with Dr. Kevin Murphy from the University of Chicago on economics of sustainability • Working with Dr. Ian Parry from Resources for the Future to develop the business case for sustainability at Navistar 4

5. Product Stewardship Facilities Reduce emissions of toxics and greenhouse gases Energy savings Habitat restoration Products Reduce emissions from engines Improve fuel efficiency Environment 5

6. Products & Sustainability • Reduced emissions • CO, HC, PM, NOx • Lower CO2 than gasoline • Better fuel efficiency (MPG) • Aerodynamic designs • Higher MPG than CNG • Hybrids • Lower CO2 emissions • More energy efficient 6

7. Lower Emissions & Higher MPG • Reduced emissions of hydrocarbons (HC) and carbon monoxide (CO) to near-zero levels • Particulate matter (PM) reduced by more than 99% • 2010 engines will cut oxides of nitrogen (NOx) emissions by more than 90 % • Lower CO2 emissions (30-40%)than gasoline • Better fuel efficiency than gasoline or CNG 7

8. Aerodynamic Truck Design Saves Energy • Increased fuel efficiency and reduced emissions • Navistar trucks feature aerodynamic designs • Annual fuel savings of more than 1,300 gallons of diesel fuel • Benefits recognized by the U.S. Environmental Protection Agency (EPA) • Navistar big bore engines have 9 to 13 percent higher MPG than previous models 8

9. Product Stewardship Pursues a Sustainable Path • Commitment to product support • Product stewardship builds on sound science and proven technology • Reduce energy usage and emissions • Address the issue of global climate change • Navistar is a leader in improving today’s diesel technology 9

10. Health and Safety Security Employee practices Community involvement Social 10

11. Health & Sustainability • Health and well-being of our employees directly impacts our bottom line • Encourages a healthy lifestyle • Minimizes absenteeism • Keeps our health care costs manageable • Improves productivity • “1, 2, 3s” of health management and disease prevention –Vital Lives Program • Comprehensive wellness program • Annual Health Assessments • Reduces costs 11

12. Safety and Security • Web-based management system links travel booking to health & security systems • Individual plants put strong emphasis on • Local safety committees • Fostering a culture of safety • Company’s command center tracks security issues system-wide • Disaster planning 12

13. Incident Rate & Disability Costs 13

14. Lost Time & Absenteeism 14

15. Sustainability Promise ProgramEngaging Employees in All Aspects of Sustainability • Program being developed to encourage employees to live more sustainably • Both on and off the job • Focus is on health, safety, environment, community, and security • Linked with the Vital Lives program • Pilot program initiated 15

16. Strategy and organizational profile Cross functional teams Sustainability Steering Group Environment, Health, Safety, Product, Stewardship, Security, Finance Economics (revenues, operating costs, etc.) Green Purchasing Recycling Economic 16

17. Three areas of focus Social Environment Economic Covers products, people and facilities Cross functional teams Sustainability is good business Summary 17