Oshkosh Corporation (NYSE:OSK) · Oshkosh Corporation (NYSE:OSK) 2014 Annual Shareholders’...

MOVING THE WORLD AT WORK

Oshkosh Corporation (NYSE:OSK)2014 Annual Shareholders’ Meeting

February 4, 2014MOVE: Strategy and Business Transformation


Forward-Looking Statements

22014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 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 U.S. and European economic recoveries; the strength of emerging market growth and projected adoption rateof work at height machinery; the expected level and timing of DoD and international defense customers procurement of productsand 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.


February 4, 20142014 Oshkosh Corporation Annual Shareholders' Meeting 3

Charlie Szews - Chief Executive Officer2014 Annual Shareholders’ Meeting

February 4, 2014MOVE: The Strategy


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): $4.5 billion

December 2013 Net Debt (2): $380 million

15 year TSR(3): ~1,200%1 year TSR(3): ~80%

(1) As of January 31, 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



Transforming – More Diverse, Global Industrial Company

FY15E Sales (1)

FY11 Sales

Defense Non-Defense

Non-Defense Sales Become Significant Majority of Revenue by FY15

FY13 Sales

(1) Based on Company estimates as of September 2012 Analyst Day



Strong Performance in FY13…

(1) Non-GAAP results. See Appendix: Non-GAAP to GAAP Reconciliation(2) Variance calculated from high end of range.

FY13 Analyst FY13 Measure Day 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


…Driving Toward FY15 Targets


Strong Free Cash Flow(1)…

7

Fiscal Year(Cumulative)

(Millions)


Free cash flow consistently approximates net income or higher

Relatively low annual capital spending requirements:$50 - $100 million

Result: significant cash flow available to return cash to shareholders or invest in the business/acquisitions

(1) Free cash flow is cash from operations less net capital expenditures

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2006 2007 2008 2009 2010 2011 2012 2013


…Responsible Capital Allocation

Completed $300M share repurchase plan Reinstated dividend – annualized $0.60/share Working capital initiatives helping drive Free Cash Flow

8

Return capital to shareholders

Re-invest in core business

Invest in external growth

opportunities

Hold cash

Reduce debt

Long-term targeted capital

structure



FY15 Targets

FY13 MOVE ScorecardOn Track to Achieve FY15 Targets

(1) Compared with FY12 expectations as of September 2012 Analyst Day.(2) Net of investment costs and compared with consolidated FY11 operating income margins.

Initiative

9

FY13Result

Bottom Line – Results for Shareholders

FY15Estimate



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

Exceeded share repurchase program goal with $347 million repurchased since November 2012

Paid first dividend under reinstated program

Increasing 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.


$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



Oshkosh Business Transformation –To Serve and Delight Customers


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


Customer Supporting Systems

13

Leaders Cascade Training

Driving Our Customer-Centric Culture:OOS Foundational Training

Customer Satisfaction

Launched September 2013

Launched December 2013

Customer First

Launched November 2012



Continue to Advance OOS Culture

142014 Oshkosh Corporation Annual Shareholders' Meeting

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

February 4, 2014


Transforming Operations –Continuous Improvement Events


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


16

Transforming Operations –Quality Initiatives



17

Transforming Operations –Customer First, Customer Focused



Sustainable Business PracticesContinue the Transformation

18

Emphasis on Green Initiatives

Corporate Wide Environmental KPI’s

Strong Community Outreach Programs

External Recognition



19

Transforming Business Culture –Oshkosh Excellence Awards


Delighting Customers

Human Development

Innovative Excellence

Environmental Responsibility


Our Commitment to Shareholders Executing MOVE to drive shareholder value Impressive FY13 results Benefiting from improving 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

20

Transforming to Sustain Long-Term Value Creation for Shareholders



Oshkosh Corporation (NYSE:OSK)2014 Annual Shareholders’ Meeting

February 4, 2014MOVE: Strategy and Business Transformation


Appendix: Non-GAAP to GAAP Reconciliation

22

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$

February 4, 20142014 Oshkosh Corporation Annual Shareholders' Meeting


Appendix: Non-GAAP to GAAP Reconciliation The table below presents a reconciliation of the Company’s presented non-GAAP measures to the

most directly comparable GAAP measures:


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,

Oshkosh Corporation (NYSE:OSK) · Oshkosh Corporation (NYSE:OSK) 2014 Annual Shareholders’...

Documents

Transcript of Oshkosh Corporation (NYSE:OSK) · Oshkosh Corporation (NYSE:OSK) 2014 Annual Shareholders’...