Oshkosh Corporation -...

MOVING THE WORLD AT WORK

Oshkosh Corporation

First Quarter Fiscal 2014

January 28, 2014

Charles L. Szews

Chief Executive Officer

Wilson R. Jones

President and Chief Operating Officer

David M. Sagehorn

Executive Vice President and Chief Financial Officer

Patrick N. Davidson

Vice President, Investor Relations


Forward-Looking Statements 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, 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, especially with the

current outlook for 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 uncertain DoD tactical wheeled vehicle strategy, including the Company’s ability to successfully

manage 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 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; 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.

January 28, 2014 OSK First Quarter 2014 Earnings Call 2


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

Sale

s

(bil

lio

ns

)

Ad

jus

ted

EP

S

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


Defense

Q1 results exceeded expectations

Focused on execution in period of lower

projected program volumes

International business development

remains a priority

Introducing new M-ATV variants

New programs moving at uneven pace

Important trials occurring this Spring

Submitted proposal and test vehicles

for Canadian MSVS SMP program

Pleased with progress of JLTV EMD

program



Access Equipment

Strong results driven by several factors

Higher volume

Continued improved operational

performance

Strong product mix impacted by Tier 4 timing

North American market remained strong

National rental company negotiations nearly

complete; orders shifting to Q2 & Q3

Largely improved global markets

Europe and Middle East stronger

Positive conditions in Latin America

Australia remained weak

Expect strong new product launches

at ConExpo



Fire & Emergency

Improved results with mixed

domestic markets

Municipal fire truck demand

improved

Expecting market to grow slowly

in 2014

Federal market remained weak due

to lower funding for equipment

Improvements in operations

underway, driven by MOVE

Expect greater benefit in 2H 2014

and throughout 2015

Plans for strong new product

launches at FDIC show this Spring



Commercial

U.S. housing starts growth trend

continued

Supports positive concrete mixer

market dynamics

U.S. refuse collection vehicle

market expected to grow slightly

in 2014

Remain focused on operational

improvements to deliver higher

margins

Expect greater benefit in 2H 2014

and throughout 2015



Consolidated Results

Sales impacted by:

‒ Significantly lower defense

volumes

+ Non-defense demand

Margins impacted by:

+ Strong access equipment results

Lower defense segment sales

Higher corporate spending

Repurchased 2.96 million

shares at aggregate cost of

$145 million

Comments

(Dollars in millions, except per share amounts)

First Quarter

Net Sales $1,530.2 $1,749.8

% Change (12.6)% (6.4)%

Adjusted

Operating Income $96.5 $96.6

% Change (0.1)% 18.1%

% Margin 6.3% 5.5%

Adjusted EPS $0.63 $0.62

% Change 1.6% 55.0%

2014 2013*

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



Updated 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

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.



For information

contact:

Patrick N. Davidson

Vice President, Investor Relations

(920) 966-5939

[email protected]

Jeff Watt

Director, Investor Relations

(920) 233-9406

[email protected]


Net Sales $668.6 $581.3

% Change 15.0%* (7.4)%


% Change 84.6% 273.5%

% Margin 13.5% 8.4%

First Quarter

(Dollars in millions)

2014 2013

Appendix: Access Equipment

Sales impacted by:

Higher North American AWP volume

(partially Tier 4 timing)

Higher European volume

Price realization

Lower U.S. military telehandler sales


Product mix

Price realization

Positive impact of military contract

finalization

Backlog down 39% vs. prior year to

$468 million due to timing of orders

Strong January 2014

orders

Comments


* 17.2% excluding military. 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

Higher international M-ATV

sales


Significantly lower volume

Improved operations

performance and product

mix

Backlog down 48%

vs. prior year to

$1.6 billion

Comments

Net Sales $481.3 $828.7

% Change (41.9)% (21.1)%


% Change (59.3)% (34.1)%

% Margin 5.2% 7.4%

First Quarter


2014 2013



Net Sales $198.0 $182.1

% Change 8.7% 19.1%


% Change 28.5% 185.2%

Margin 3.5% 2.9%

First Quarter


2014 2013

Appendix: Fire & Emergency

Sales impacted by:

+ Volume, primarily

international airport and

domestic fire truck

deliveries


+ Prior year claim

Backlog up 6% vs. prior

year at $507 million

Comments



Appendix: Commercial

Sales impacted by:

+ Higher parts & service

sales

+ Higher concrete placement

volume


+ Improved absorption on

higher sales

Backlog up 17% vs. prior

year to $171 million

Comments

Net Sales $192.6 $177.3

% Change 8.6% 3.3%


% Change 27.7% 16.2%

% Margin 5.3% 4.5%

First Quarter


2014 2013



Appendix: Commonly Used Acronyms ARFF 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 OI Operating Income

EPS Diluted Earnings Per Share PLS Palletized Load System

FHTV Family of Heavy Tactical Vehicles PUC Pierce Ultimate Configuration

FMS Foreign Military Sales RCV Refuse Collection Vehicle

FMTV Family of Medium Tactical Vehicles RFP Request for Proposal

HEMTT Heavy Expanded Mobility Tactical Truck ROW Rest of World

HET Heavy Equipment Transporter SMP Standard Military Pattern (Canadian MSVS)

HEWATT HEMTT-Based Water Tender TACOM Tank-automotive and Armaments Command

HMMWV High Mobility Multi-Purpose Wheeled Vehicle TDP Technical Data Package

JLTV Joint Light Tactical Vehicle TFFT Tactical Fire Fighting Truck

JPO Joint Program Office TPV Tactical Protector Vehicle

JROC Joint Requirements Oversight Council TWV Tactical Wheeled Vehicle

JUONS 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

M-ATV MRAP All-Terrain Vehicle



Appendix: Non-GAAP to GAAP

Reconciliation • The tables 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):


2013 2012

Access equipment segment sales excluding military (Non-GAAP) 661.1$ 564.1$

Military telehandler sales - 17.2

Final pricing adjustment on multi-year military contract 7.5 -

Access equipment segment sales (GAAP) 668.6$ 581.3$

Non-GAAP operating expenses-Corporate (35.6)$ (26.4)$

Tender offer and proxy contest costs - (16.3)

GAAP operating expenses-Corporate (35.6)$ (42.7)$

Non-GAAP operating income 96.5$ 96.6$

Tender offer and proxy contest costs - (16.3)

GAAP operating income 96.5$ 80.3$

Non-GAAP income from continuing operations, net of tax 54.9$ 56.7$

Tender offer and proxy contest costs, net of tax - (10.4)

GAAP income from continuing operations, net of tax 54.9$ 46.3$

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$

Fiscal Year Ended

September 30, 2013

Non-GAAP operating expenses-Corporate (147.6)$

Tender offer and proxy contest costs (16.3)

GAAP operating expenses-Corporate (163.9)$

Three Months Ended

December 31,


Appendix: Non-GAAP to GAAP

Reconciliation • The tables 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 2014

Expectations

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$

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