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MOVING THE WORLD AT WORK
Oshkosh Corporation (NYSE:OSK)J.P. Morgan Aviation, Transportation &
Industrials ConferenceMarch 12, 2014
MOVING THE WORLD AT WORK
Forward-Looking Statements
22014 J.P. Morgan Industrials Conference March 12, 2014
This presentation contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, withoutlimitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs,earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, areforward-looking statements. When used in this presentation, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially with the current outlook for the U.S. and European economic recoveries; the strength of emerging market growth and projected adoption rate of work at height machinery; the expected level and timing of DoD and international defense customers procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures, sequestration and an uncertain DoD tactical wheeled vehicle strategy, including the Company’s ability to successfullymanage the cost reductions required as a result of the significant projected decrease in sales levels in the defense segment; the Company’s ability to win a U.S. JLTV production contract award; the Company’s ability to increase prices to raise margins or offset higher input costs; increasing commodity and other raw material costs, particularly in a sustained economic recovery; risks related to facilities consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; the duration of the ongoing global economic uncertainty, which could lead to additional impairment charges related to many of the Company’s intangible assets and/or a slower recovery in the Company’s cyclical businesses thanCompany or equity market expectations; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company’s products; risks related to production or shipment delays arising from quality or production issues; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; the Company’s ability to comply with complex laws and regulations applicable to U.S. government contractors; and risks related to the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission, including the Form 8-K filed January 28, 2014. All forward-looking statements speak only as of the date of this presentation. The Company assumes no obligation, and disclaims any obligation, to update information contained in this presentation. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.
MOVING THE WORLD AT WORK
Oshkosh Corporation Leading provider of specialty vehicles
• Moving the World at Work
Nearly 100 years in business; incorporated in 1917
Four business segments
FY13 Revenue: $7.7 billion
Market Capitalization (1): $4.9 billion
December 2013 Net Debt (2): $380 million
15 year TSR(3): ~1,200%1 year TSR(3): ~80%
(1) As of March 7, 2014(2) Net debt is total debt less cash(3) TSR is Total Shareholder Return. Source: ThomsonONE. From September 30, 1998 to September 30, 2013 and
September 28, 2012 to September 30, 2013, respectively
Access Equipment Defense
Fire & Emergency Commercial
32014 J.P. Morgan Industrials Conference March 12, 2014
MOVING THE WORLD AT WORK
Transforming – More Diverse, Global Industrial Company
FY15E Sales (1)
FY11 Sales
Defense Non-Defense
Non-Defense Sales Become Majority of Revenue by FY15
FY13 Sales
(1) Based on Company estimates as of September 2012 Analyst Day
42014 J.P. Morgan Industrials Conference March 12, 2014
MOVING THE WORLD AT WORK
MOVE is DeliveringStrong Financial Results
MOVING THE WORLD AT WORK
MOVE – The Right Strategy
Focuses on drivers that create highest shareholder value Expected to drive higher incremental margins across non-Defense
businesses over cycle
FY15 EPS Target$4.00 to $4.50
62014 J.P. Morgan Industrials Conference March 12, 2014
MOVING THE WORLD AT WORK
Strong Performance in FY13…
(1) Non-GAAP results. See Appendix: Non-GAAP to GAAP Reconciliation(2) Variance calculated from high end of range.
Analyst Day FY13 Measure FY13 Estimates Actual %Variance(2)
Revenue $7.5 - $7.8B $7.7B (1.7%) Solid non-defense growth largely offset anticipated defense decline
Adjusted Operating Income(1) $380 - $420M $535M 27.4% MOVE initiatives provide strong foundationfor growth to FY15 objectives
Adjusted EPS(1) $2.35 - $2.60 $3.74 43.8% Strong growth despite lower defense revenue
Free Cash Flow(1) $75 - $100M $386M 286.0%Consistent generator of strong FCF
72014 J.P. Morgan Industrials Conference March 12, 2014
…Driving Toward FY15 Targets
MOVING THE WORLD AT WORK
Strong Free Cash Flow(1)
82014 J.P. Morgan Industrials Conference March 12, 2014
Free cash flow consistently approximates net income or higher
Relatively low annual capital spending requirements:$50 - $100 million
Result: significant cash flow available to execute capital allocation strategy
(1) Free cash flow is cash from operations less net capital expenditures
Fiscal Year
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2006 2007 2008 2009 2010 2011 2012 2013
Cum
ulat
ive
Free
Cas
h Fl
ow (m
illio
ns)
MOVING THE WORLD AT WORK
Responsible Capital Allocation Strategy
Reinstated $0.15 quarterly cash dividend Repurchased 9.8M OSK shares for $368M; July 2012 - Feb. 3, 2014 Refinanced $250M in Sr. Notes due March 2022
• Interest rate reduced from 8.25% to 5.375%
9
Return capital to shareholders
Re-invest in core business
Invest in external growth
opportunities
Hold cash
Reduce debt
Long-term targeted capital
structure
2014 J.P. Morgan Industrials Conference March 12, 2014
MOVING THE WORLD AT WORK
Powering Our Transformation –The Oshkosh Operating System Customer-centric application
of lean principles• Develops talent to deliver value
for customers
Improves processes needed todeliver key elements of MOVE
Supports drive to improve cash flow
Implementation gaining momentum
Company-wide foundation for building shareholder value
102014 J.P. Morgan Industrials Conference March 12, 2014
MOVING THE WORLD AT WORK
Customer Supporting Systems
11
Leaders Cascade Training
Driving Our Customer-Centric CultureOOS Foundational Training
Customer Satisfaction
Launched September 2013
Launched December 2013
Customer First
Launched November 2012
2014 J.P. Morgan Industrials Conference March 12, 2014
MOVING THE WORLD AT WORK
Transforming Operations –Continuous Improvement Events
122014 J.P. Morgan Industrials Conference March 12, 2014
Using Problem Solving Tools to Improve Paint Quality
Developing Customer-Centric Key Performance Indicators
Using Process Mapping to Reduce Lead Time
Improving Station Layout to Reduce Non-Value Added Motion
MOVING THE WORLD AT WORK
Continue to Advance OOS Culture
132014 J.P. Morgan Industrials Conference
The OOS Journey
Phase Zero:Exploration
Phase One:Building the foundation
Phase Two:Expanding with tools and deeper thinking
Phase Three:Integration and reinforcement
Phase Four:Building the momentum
March 12, 2014
MOVING THE WORLD AT WORK
Favorable Near-TermMarket Outlook SupportsBusiness Transformation
MOVING THE WORLD AT WORK
Access Equipment
Extensive new product launch activity at ConExpo
Replacement demand continues to drive North American market• NRCs: ~flat; IRCs: up• Fleet growth with a few customers
Improving in select global markets• Europe and Middle East stronger• Positive conditions in Latin America• Australia remains weak
Severe weather has caused supplier disruptions and production delays• Will impact Q2 sales and earnings• Full year results are not expected to
be impacted
March 12, 20142014 J.P. Morgan Industrials Conference 15
MOVING THE WORLD AT WORK
North American Metrics Remain SolidRefreshing Fleets, Increasing Penetration
Residential and Non-Residential Spending(Y-O-Y % Change)
N.A. Rental Equipment Access - Fleet Age(AWP & TMH)
N.A. Rental Equipment Company Fleet Utilization
Recent Used Equipment Value Trends(OLV)
Source: Global Insight Estimates, December 2013
Based on International Rental News/Dan Kaplan sample of medium to large NA rental equipment companies (United Rentals, RSC, H&E, HERC).
(% C
hang
e)(%
Tim
e U
tiliz
atio
n)
OLV
(% o
f Cos
t)
Source: Rouse Rental Report. Calendar year-end data for 2008-13
(Age
in M
onth
s)
16
Source: Rouse Asset Services, January 2014Note: Rouse rebased the Rouse Value IndexTM in January 2014
‐40%
‐30%
‐20%
‐10%
0%
10%
20%
30%
2008 2009 2010 2011 2012 2013E 2014E 2015E
Residential Non‐Residential
50
55
60
65
70
75
Ind. Avg.
March 12, 20142014 J.P. Morgan Industrials Conference
40
45
50
55
60
2008 2009 2010 2011 2012 2013
25.0
30.0
35.0
40.0
45.0
Articulating Booms Scissor LiftsTelescopic Booms Telehandlers
MOVING THE WORLD AT WORK
March 12, 20142014 J.P. Morgan Industrials Conference 17
• Managing programs with lower expected funding• Operations continue to improve
• Working on multiple international upside opportunities- Middle East: M-ATV, Medium & Heavy
TWV platforms- Canada MSVS SMP
Defense Team Driving Hard Through Downturn
(1) FY15 estimates as of September 2012 Analyst Day
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
FY11 FY12 FY13 FY14E FY15E
Sale
s in
Bill
ions
$4.4$4.0
$3.0
$1.75 - $1.80$1.5 Target (1)
0.0%
5.0%
10.0%
15.0%
FY11 FY12 FY13 FY14E FY15E
12.4%
6.0%7.5%*
3.75% – 4.0% Baseline~2.0% (1)
Ope
ratin
g In
com
e M
argi
n
DoD Funding Drives Lower Outlook Through FY15
$0.8 Baseline (1)
MOVING THE WORLD AT WORK
Competing in Light TWV MarketJoint Light Tactical Vehicle Program
JLTV represents opportunity to rebuild the business• One of three potential suppliers • Large unit potential
o Initial contract ~17,000o Total U.S. requirements of ~55,500o Attractive global customer prospects
• Leverages Oshkosh strengths• Contract award scheduled for 2015
March 12, 20142014 J.P. Morgan Industrials Conference 18
MOVING THE WORLD AT WORK
Fire & Emergency
Municipal fire truck demand slowly improving• Expecting market growth in 2014
Federal market remains weak• Lower equipment funding
Operational improvement initiatives underway, driven by MOVE• Expect greater benefit in 2H 2014
and throughout 2015 Multiple new product launches at
FDIC show next month
March 12, 20142014 J.P. Morgan Industrials Conference 19
MOVING THE WORLD AT WORK
Domestic Fire Market Drivers Stabilizing • Municipal fire truck orders improving with recovering tax receipts• Stronger customer activity
Recent Headlines
Construction Spending Highest in Nearly Five Years- Reuters, January 2, 2014
Home prices rise more than expected- USA Today, February 25, 2014
Solid new-home sales lift hopes for housing market - Washington Post,February 26, 2014
HOUSING PRICES & LOCAL PROPERTY TAXES
20March 12, 20142014 J.P. Morgan Industrials Conference
MOVING THE WORLD AT WORK
Commercial
U.S. housing recovery driving concrete mixer sales
Remain focused on operational improvements to deliver higher margins• Expect greater benefit in 2H 2014
and throughout 2015 Expect RCV market to return to
growth in 2014
March 12, 20142014 J.P. Morgan Industrials Conference 21
MOVING THE WORLD AT WORK
Trending in line with Analyst Day expectations through FY15
Construction: Substantial MixerOpportunities with Modest Recovery
Housing Starts and Mixer Shipments (1959-2013)
22
Sources: Housing Starts - U.S. Census Bureau. Mixer Shipments - Truck Mixer Manufacturers Bureau; U.S. and Canada.
March 12, 20142014 J.P. Morgan Industrials Conference
0.5
0.7
0.9
1.1
1.3
1.5
1.7
1.9
2012 2013 2014E 2015EHou
sing
Sta
rts
(uni
ts in
mill
ions
)
U.S. Housing Starts Forecasts
Moodys Portland Cement AssociationGlobal Insight Average Analyst Estimate
0
2,000
4,000
6,000
8,000
10,000
12,000
0
500
1,000
1,500
2,000
2,500
Mixer units
Hou
sing
Sta
rts
in M
illio
ns
Housing Starts Mixer Units Shipped Moody’s – Jan.’14Global Insight – Dec. ’13PCA – Nov. ‘13
MOVING THE WORLD AT WORK
Slowly Recovering RCV Market• Slight market contraction in FY13‒ Lower unit volumes in western U.S.
• Municipal tax receipts continue to improve• Fleet age reduction, construction and municipal spending
increase drive demand through FY15
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13E FY14E FY15E
Mar
ket S
ize
(uni
ts)
Source: WASTEC Industry Data
March 12, 20142014 J.P. Morgan Industrials Conference 23
MOVING THE WORLD AT WORK
What to Look for in FY14
MOVING THE WORLD AT WORK
MOVE Investments Providing Returns Recovering demand for
non-defense businesses in North America• Europe looking stronger Additional cost take-out
• Focus on product, process and overhead costs
• Dedicated teams leveraging the Oshkosh Operating System
Innovations improving customers’ performance at work Increased international
orders/sales
25March 12, 20142014 J.P. Morgan Industrials Conference
MOVING THE WORLD AT WORK
A Strong Start to FY14 EPS of $0.63 exceeded expectations
• Disciplined execution• Favorable product mix
Improved performance in all non-defense segments offset defense earnings decline• MOVE drove higher operating income
margins
Repurchased 3.0 million shares for $146 million in Q1
Paid first dividend under reinstated program
Increased FY14 EPS expectations to a range of $3.40 to $3.65
Net
Sal
es(b
illio
ns)
Adjusted EPS
OSK Fiscal Q1 Performance
* Non-GAAP results. See appendix for reconciliation to GAAP results.
March 12, 20142014 J.P. Morgan Industrials Conference 26
$1.53
$1.75
$0.63 $0.62
$0.00
$0.25
$0.50
$0.75
$1.00
$0.0$0.2$0.4$0.6$0.8$1.0$1.2$1.4$1.6$1.8$2.0
FY14 FY13*Net Sales EPS
MOVING THE WORLD AT WORK
Expectations for FY14
Additional expectations Corporate expenses flat with adjusted FY13* Tax rate of ~32% CapEx of ~$80 million Free cash flow* ~$200 million Assumes share count of ~85.5 million
Segment information
Measure Access Equipment Defense Fire &
Emergency Commercial
Sales(billions) $3.35 - $3.40 $1.75 - $1.80 $0.80 - $0.825 $0.85 - $0.90
Operating Income Margin 14.25% - 14.5% 3.75% - 4.0% 4.0% - 4.5% 6.75% - 7.0%
• Revenues of $6.65 billion to $6.85 billion• Operating income of $490 million to $520 million• EPS of $3.40 to $3.65
Comments on FY14 Second Quarter Some impact due to severe weather Expect improved year-over-year results in non-
defense segments Expect significantly lower defense segment sales
and operating income Prior year quarter had strong
M-ATV sales
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
March 12, 20142014 J.P. Morgan Industrials Conference 27
MOVING THE WORLD AT WORK
Our Commitment to Shareholders Continue executing MOVE to drive shareholder value
• Impressive FY13 results, strong start to FY14 in Q1• Benefiting from improved housing starts; expect follow on growth
in non-residential construction and municipal recovery• MOVE initiatives driving margin expansion• On track to achieve FY15 EPS of $4.00 to $4.50
Oshkosh Operating System developing processes and talent to sustain superior growth for shareholders
28
Transforming to Sustain Long-Term Value Creation for Shareholders
2014 J.P. Morgan Industrials Conference March 12, 2014
MOVING THE WORLD AT WORK
For informationcontact:
Patrick N. DavidsonVice President, Investor Relations(920) [email protected]
Jeffrey D. WattDirector, Investor Relations(920) [email protected]
MOVING THE WORLD AT WORK
Appendix: Commonly Used Acronyms
30
ARFF Aircraft Rescue and Firefighting M-ATV MRAP All-Terrain VehicleAWP Aerial Work Platform MECV Modernized Expanded Capability VehicleCapEx Capital Expenditures MRAP Mine Resistant Ambush ProtectedCNG Compressed Natural Gas MSVS Medium Support Vehicle System (Canada)DGE Diesel Gallon Equivalent NOL Net Operating LossDoD Department of Defense NPD New Product Development
EAME Europe, Africa & Middle East NRC National Rental Company
EMD Engineering & Manufacturing Development OI Operating IncomeEPS Diluted Earnings Per Share OOS Oshkosh Operating SystemFHTV Family of Heavy Tactical Vehicles PLS Palletized Load SystemFMS Foreign Military Sales PUC Pierce Ultimate ConfigurationFMTV Family of Medium Tactical Vehicles R&D Research & DevelopmentHEMTT Heavy Expanded Mobility Tactical Truck RCV Refuse Collection VehicleHET Heavy Equipment Transporter RFP Request for ProposalHMMWV High Mobility Multi-Purpose Wheeled Vehicle ROW Rest of WorldIRC Independent Rental Company SMP Standard Military Pattern (Canadian MSVS)
IT Information Technology TACOM Tank-automotive and Armaments Command
JLTV Joint Light Tactical Vehicle TDP Technical Data PackageJPO Joint Program Office TPV Tactical Protector VehicleJROC Joint Requirements Oversight Council TWV Tactical Wheeled VehicleJUONS Joint Urgent Operational Needs Statement UCA Undefinitized Contract Action
L-ATV Light Combat Tactical All-Terrain Vehicle UIK Underbody Improvement Kit (for M-ATV)
LVSR Logistic Vehicle System Replacement
March 12, 20142014 J.P. Morgan Industrials Conference
MOVING THE WORLD AT WORK
Appendix: Non-GAAP to GAAP Reconciliation
31
The table below presents a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures (in millions, except per share amounts):
Fiscal Year EndedSeptember 30,
2013
Non-GAAP operating income 534.8$ Tender offer and proxy contest costs (16.3) Impairment charge (9.0) Union contract ratification costs (3.8) GAAP operating income 505.7$
Non-GAAP earnings per share from continuing operations-diluted 3.74$ Tender offer and proxy contest costs, net of tax (0.12) Impairment charge, net of tax (0.06) Union contract ratification costs, net of tax (0.03) GAAP earnings per share from continuing
operations-diluted 3.53$
Net cash flows provided by operating activities 438.0$ Additions to property, plant and equipment (46.0) Additions to equipment held for rental (13.9) Proceeds from sale of property, plant and equipment 0.1 Proceeds from sale of equipment held for rental 7.5 Free cash flow 385.7$
Non-GAAP operating expenses-Corporate (147.6)$ Tender offer and proxy contest costs (16.3) GAAP operating expenses-Corporate (163.9)$
March 12, 20142014 J.P. Morgan Industrials Conference
MOVING THE WORLD AT WORK
Appendix: Non-GAAP to GAAP Reconciliation
32
The table below presents a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures (in millions, except per share amounts):
Fiscal 2014Expectations
Net cash flows provided by operating activities 293.0$ Additions to property, plant and equipment (80.0) Additions to equipment held for rental (13.0) Proceeds from sale of equipment held for rental - Free cash flow 200.0$
2013 2012
Non-GAAP earnings per share from continuing operations-diluted 0.63$ 0.62$ Tender offer and proxy contest costs, net of tax - (0.11) GAAP earnings per share from continuing operations-diluted 0.63$ 0.51$
Three Months EndedDecember 31,
March 12, 20142014 J.P. Morgan Industrials Conference