Oshkosh Corporation Charles L. Szews Chief Executive...

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Oshkosh Corporation

Second Quarter Fiscal 2014April 29, 2014

Charles L. SzewsChief Executive Officer

Wilson R. JonesPresident and Chief Operating Officer

David M. SagehornExecutive Vice President and Chief Financial Officer

Patrick N. DavidsonVice President, Investor Relations


Forward-Looking StatementsThis 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, without limitation, 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, are forward-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, which are particularly impacted by the pace of 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 customer 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 uncertainDoD tactical wheeled vehicle strategy, including the Company’s ability to successfully manage the cost reductions required as a result of lower customer orders 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 inthe Company’s cyclical businesses than Company 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; the impact of severe weather or natural disasters that may affect either the Company, the Company’s suppliers or its customers; the impact of cyber security risk and costs of defending against, mitigating and responding to a data security breach; 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 today. 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.

April 29, 2014OSK Second Quarter 2014 Earnings Call 2


Q2 Performance Highlights

Adjusted EPS* of $0.80 Solid performance despite

significant defense sales decline Market conditions improved for

most non-defense businesses Strong international order trend

in access equipment continuedin Q2

Important new product launches at trade shows

Refinanced debt Reiterating FY14 adjusted EPS*

expectations of $3.40 to $3.65

Net

Sal

es(b

illio

ns)

Adjusted EPS*

OSK Fiscal Q2 Performance

* Non-GAAP results. See Appendix for reconciliation to GAAP results.


$1.68

$1.98

$0.80

$0.96

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

FY14 FY13Net Sales Adjusted EPS*


Defense

Sales down significantly compared to prior year quarter As expected

Announced plans for layoffs to match expected lower production volume

Low funding in President’s 2015 budget request for OSK programs Potential OCO funding

Negotiating multi-year FHTV contract Continued pursuit of future

opportunities JLTV program International business (primarily Middle

East, Canada and Eastern Europe)



Access Equipment Strong execution despite weather-related

disruptions Overcame material shortages and

production delays Sales up in all regions except Australia

Innovation focus evident at ConExpo trade show 185’ Ultra Boom AWP Refreshed North America’s top telehandler

brand, SkyTrak®

Industry’s first hybrid diesel-electric boom lift Introduced global telehandler - RS series

Positive global trends



Fire & Emergency

Extensive new product launches at FDIC show

Challenging quarter Production delays Sales timing

Investing in operations to achieve MOVE targets Expect greater benefit in 2H 2014

and throughout 2015 Expect continuation of slow

recovery in U.S. municipal demand Federal demand remained lower in

response to lower funding



Commercial Positive outlook for U.S.

concrete mixer market Housing trend generally

positive Strong ConExpo trade

show

Expect flat U.S. RCV market in 2014 Remain focused on

driving improved segment results Expect greater benefit in

2H 2014 and into 2015



Consolidated Results

Sales impacted by:

‒ Significantly lower defense volumes

+ Access equipment demand

Margins impacted by:

+ Strong access equipment results

Lower defense segment sales

Repurchased 146,365 shares at aggregate cost of $7.3 million

Comments

(Dollars in millions, except per share amounts)

Second Quarter

Net Sales $1,677.9 $1,984.4 % Change (15.4)% (3.8)%

Adjusted Operating Income* $123.5 $134.6

% Change (8.2)% 53.5%% Margin 7.4% 6.8%

Adjusted EPS* $0.80 $0.96% Change (16.7)% 95.9%

2014 2013




Updated Expectations for FY14

Additional expectations Corporate expenses ~$10 million higher than

adjusted FY13* Tax rate* of ~32% CapEx of ~$80 million Free cash flow* ~$200 million Share count of ~86.0 million

Segment information

Measure Access Equipment Defense Fire &

Emergency Commercial

Sales(billions) $3.40 - $3.45 $1.725 - $1.75 ~$0.80 $0.85 - $0.875

Operating Income Margin 14.5% - 14.75% 4.5% - 4.75%* 3.5% - 3.75% 6.0% - 6.25%

• Revenues of $6.7 billion to $6.8 billion• Adjusted operating income* of $490 million to $520 million• Adjusted EPS* of $3.40 to $3.65

Comments on FY14 Second Half Expect Q3 to be strongest earnings quarter

of the year Expect reduction in defense segment sales

and operating income from Q3 to Q4




For informationcontact:

Patrick N. DavidsonVice President, Investor Relations(920) [email protected]

Jeff WattDirector, Investor Relations(920) [email protected]


Net Sales $866.0 $817.4% Change 5.9%* 7.5%

Operating Income $116.6 $95.0% Change 22.7% 38.9%% Margin 13.5% 11.6%

Second Quarter

(Dollars in millions)

2014 2013

Appendix: Access Equipment

Sales impacted by: Higher unit and aftermarket volume Price realization Lower U.S. military telehandler

sales

Margins impacted by: MOVE initiatives Price realization Product mix NPD spending

Backlog down 6.7% vs. prior year to $726.5 million (down1.8% excluding military telehandlers)

Comments


* 9.3% excluding military telehandlers. Non-GAAP results. See Appendix for reconciliation to GAAP results.


Appendix: Defense

Sales impacted by: Significantly lower volume due

to reduced U.S. defense spending

Lower international M-ATV sales

Margins impacted by: Continued NPD investments Significantly lower volume Favorable pension cost

reimbursement Favorable warranty experience

Backlog down 51.9%vs. prior year to $1.24 billion

Comments

Net Sales $484.4 $827.6% Change (41.5)% (16.2)%

Adjusted Operating Income* $38.6 $67.0

% Change (42.4)% 59.7%% Margin 8.0% 8.1%

Second Quarter


2014 2013




Net Sales $156.1 $174.0% Change (10.3)% 3.3%

Operating Income $1.0 $2.7% Change (60.9)% 189.1%% Margin 0.7% 1.6%

Second Quarter


2014 2013

Appendix: Fire & Emergency

Sales impacted by: Production delays Lower international

deliveries

Margins impacted by: Lower volume impact on

absorption Favorable warranty

experience

Backlog up 6.7% vs. prior year to $534 million

Comments



Appendix: Commercial

Sales impacted by: Lower sales of units with

chassis (weather-related) Lower intersegment

defense sales Front discharge mixer

rebuild sales

Margins impacted by: Investments in MOVE

initiatives

Backlog up 31.5% vs. prior year to $224.5 million

Comments

Net Sales $182.3 $185.5% Change (1.7)% 10.6%

Operating Income $5.4 $7.6% Change (28.8)% 97.8%% Margin 3.0% 4.1%

Second Quarter


2014 2013



Appendix: Commonly Used AcronymsARFF Aircraft Rescue and Firefighting MECV Modernized Expanded Capability Vehicle

AWP Aerial Work Platform MRAP Mine Resistant Ambush Protected

CNG Compressed Natural Gas MSVS Medium Support Vehicle System (Canada)

DoD Department of Defense MTT Medium Tactical Truck

EAME Europe, Africa & Middle East NPD New Product Development

EMD Engineering & Manufacturing Development OCO Overseas Contingency Operations

EPS Diluted Earnings Per Share OI Operating Income

FHTV Family of Heavy Tactical Vehicles PLS Palletized Load System

FMS Foreign Military Sales PUC Pierce Ultimate Configuration

FMTV Family of Medium Tactical Vehicles RCV Refuse Collection Vehicle

HEMTT Heavy Expanded Mobility Tactical Truck RFP Request for Proposal

HET Heavy Equipment Transporter ROW Rest of World

HEWATT HEMTT-Based Water Tender SMP Standard Military Pattern (Canadian MSVS)

HMMWV High Mobility Multi-Purpose Wheeled Vehicle TACOM Tank-automotive and Armaments Command

JLTV Joint Light Tactical Vehicle TDP Technical Data Package

JPO Joint Program Office TFFT Tactical Fire Fighting Truck

JROC Joint Requirements Oversight Council TPV Tactical Protector Vehicle

JUONS Joint Urgent Operational Needs Statement TWV Tactical Wheeled Vehicle

L-ATV Light Combat Tactical All-Terrain Vehicle UCA Undefinitized Contract Action

LVSR Logistic Vehicle System Replacement UIK Underbody Improvement Kit (for M-ATV)

M-ATV MRAP All-Terrain Vehicle



Appendix: Non-GAAP to GAAP Reconciliation

• The tables below present a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures (in millions, except per share amounts):


2014 2013

Access equipment segment sales excludingmilitary (non-GAAP) 866.0$ 792.0$

Military telehandler sales - 25.4 Access equipment segment sales (GAAP) 866.0$ 817.4$

Defense operating income (non-GAAP) 38.6$ 67.0$ Pension curtailment (4.1) - Defense operating income (GAAP) 34.5$ 67.0$

Adjusted operating income (non-GAAP) 123.5$ 134.6$ Pension curtailment (4.1) - Operating income (GAAP) 119.4$ 134.6$

Adjusted earnings per share from continuingoperations-diluted (non-GAAP) 0.80$ 0.96$

Reduction of valuation allowance on net operatingloss carryforward 0.14 -

Pension curtailment, net of tax (0.03) - Debt extinguishment costs, net of tax (0.08) -

Earnings per share from continuingoperations-diluted (GAAP) 0.83$ 0.96$

Three Months EndedMarch 31,





Fiscal Year EndedSeptember 30, 2013

Non-GAAP operating expenses-Corporate $ (147.6)Tender offer and proxy contest costs (16.3)GAAP operating expenses-Corporate $ (163.9)

Low High

Adjusted operating income (non-GAAP) 490.0$ 520.0$ Pension curtailment (4.1) (4.1) Operating income (GAAP) 485.9$ 515.9$

Adjusted earnings per share from continuing operations-diluted (non-GAAP) 3.40$ 3.65$ Reduction of valuation allowance on net operating loss carryforward 0.14 0.14 Pension curtailment, net of tax (0.03) (0.03) Debt extinguishment costs, net of tax (0.08) (0.08) Earnings per share from continuing operations-diluted (GAAP) 3.43$ 3.68$

Defense adjusted operating income margin (non-GAAP) 4.50% 4.75%Pension curtailment (0.25)% (0.25)%Defense operating income margin (GAAP) 4.25% 4.50%

Fiscal 2014 Expectations





Fiscal 2014Expectations

Net cash flows provided by operating activities 290.0$ Additions to property, plant and equipment (80.0) Additions to equipment held for rental (13.0) Proceeds from sale of equipment held for rental 3.0

Free cash flow 200.0$

Effective tax rate (non-GAAP) 32.0%Reduction of valuation allowance on net operating loss carryforward (3.0)%Effective tax rate (GAAP) 29.0%

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