Q1 2016 earnings slides final

MOVING THE WORLD AT WORK

First Quarter Fiscal 2016January 28, 2016

Wilson R. JonesPresident and Chief Executive Officer

David M. SagehornExecutive Vice President and Chief Financial Officer

Patrick N. DavidsonVice President, Investor Relations

Oshkosh Corporation (NYSE:OSK)


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 strength of U.S. and European economies and construction seasons; the Company’s estimates of access equipment demand which, among other factors, is influenced by customer historical buying patterns and rental company fleet replacement strategies; the strength of the U.S. dollar and its impact on Company exports, translation of foreign sales and purchased materials; the expected level and timing of U.S. Department of Defense (“DoD”) and international defense customer procurement of products and services and funding thereof; the Company’s ability to utilize material and components which it has committed to purchase from suppliers; risks related to reductions in government expenditures in light of U.S. defense budget pressures, sequestration and an uncertain DoD tactical wheeled vehicle strategy; risks related to the Company’s future defense segment results depending upon the outcome of a competitor’s lawsuit regarding the JLTV production contract award to the Company; 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 expansion, consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; 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; projected adoption rates of work at height machinery in emerging markets; the impact of severe weather or natural disasters that may affect the Company, its suppliers or its customers; 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 compliance with the Foreign Corrupt Practices Act; the Company’s ability to comply with complex laws andregulations applicable to U.S. government contractors; cybersecurity risks 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 dateof 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, 2016OSK First Quarter 2016 Earnings Call 2


Q1 FY16

Q1 EPS of $0.19− Largely in line with expectations

Improved fire & emergency and defense segment results

Strong yr/yr orders at fire & emergency

Restarted work on JLTV− Remain confident that award to

Oshkosh will be upheld Updating full year EPS outlook

to range of $2.20 to $2.60− Timing of expected large

international M-ATV contract delayed

− Lower expectations for access equipment segment

Net Sales(billions)

AdjustedEPS*

3

$1.3 $1.4

$0.19

$0.41

$0.00

$0.25

$0.50

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

FY16 FY15Net Sales Adjusted EPS*

* Non-GAAP results for FY15. See Appendix for reconciliation to GAAP results.

OSK Fiscal Q1 Performance

January 28, 2016OSK First Quarter 2016 Earnings Call


Access Equipment Lowering FY16 outlook despite Q1

results in line with expectations

North America replacement demand slowdown continued− Lower telehandler sales due to strong prior

year demand (Tier 4 emissions)

− Cautious approach to FY16 CapEx Solid orders; positive national rental

company negotiations

Mixed international market conditions

Reduced production levels as planned Positive long-term trends− Construction growth in the U.S.− Global product adoption



Defense

Executing foundational programs− FMTV

− FHTV

More than 200 international M-ATV shipments in Q1(of 273 unit order received in Q4 FY15)

JLTV activities ramping up− Executing to contract requirements− Successful start of work meeting with

government customer



Fire & Emergency

Strong Pierce fire apparatus orders and share gains to start out the year Continued market recovery Successful new product launches

Higher backlog Continued progress driving

improved operational efficiencies Higher production rate compared to

prior year Additional production rate increase

planned Still more work to do



Commercial

Continued positive RCV trends− Ongoing market recovery− Share gains

Concrete mixer market caution continued in Q1− Waiting to confirm solid 2016

construction season Positive dynamics support

longer-term concrete mixer growth opportunities− Expected U.S. construction

growth− U.S. Highway Bill− Continued fleet aging



Consolidated Results

Sales impacted by: Lower access equipment and

commercial segment sales

Higher defense and fire & emergency segment sales

EPS impacted by: Lower access equipment

segment results

Higher defense and fire & emergency segment results

Discrete tax items

Lower share count

Q1 Comments

(Dollars in millions, except per share amounts)

First Quarter

Net Sales $1,252.0 $1,353.3% Change (7.5)% (11.6)%

Adjusted Operating Income $30.3 $62.3*

% Change (51.3)% (35.5)%% Margin 2.4% 4.6%

Adjusted EPS $0.19 $0.41*% Change (53.7)% (34.9)%

2016 2015

* Non-GAAP results for 2015. See Appendix for reconciliation to GAAP results.



Updated Expectations for FY16

Additional expectations Corporate expenses of $130 - $135 million Tax rate of ~ 32% CapEx of ~ $100 million Free Cash Flow* ~ $275 million Assumes share count of ~ 74.5 million

Segment information

Revenues of ~ $5.7 to $6.0 billion Operating income of $300 million to $340 million EPS of $2.20 to $2.60

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

9

Quarterly commentary Earnings weighted to second half, unchanged

from prior expectations Seasonality Cautious construction equipment customers

Meaningfully lower yr/yr second quarter earnings

Measure Access Equipment Defense Fire &

Emergency Commercial

Sales(billions) $2.8 to $2.95 ~ $1.15 ~ $0.9 ~ $1.0

Operating Income Margin ~10% ~ 4.5% ~ 6.0% ~ 7.0%

January 28, 2016OSK First Quarter 2016 Earnings Call


For informationcontact:

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

Jeffrey D. WattDirector, Investor Relations(920) [email protected]



Net Sales $529.8 $716.7% Change (26.1)% 7.2%

Operating Income $20.4 $77.2% Change (73.5)% (14.5)%% Margin 3.9% 10.8%

First Quarter

(Dollars in millions)

2016 2015

Appendix: Access Equipment

Sales impacted by: Lower North America volume

(mostly telehandlers) Unfavorable foreign currency

Operating income impacted by: Lower sales volume Unfavorable absorption Restructuring costs

Backlog down 9% vs. prior year to $725 million

Q1 Comments



Appendix: Defense

Sales impacted by: International M-ATV sales M-ATV reset volume Lower FHTV and FMTV sales

Operating income impacted by: Favorable product mix Higher sales volume

Backlog up 85% vs. prior year to $1.2 billion

Q1 Comments

Net Sales $318.0 $269.3% Change 18.1% (44.1)%

Adjusted Operating Income $23.2 $6.4*

% Change 262.0% (74.2)%% Margin 7.3% 2.4%

First Quarter


2016 2015


* Non-GAAP results for 2015. See Appendix for reconciliation to GAAP results.


Net Sales $207.5 $167.0% Change 24.2% (15.6)%

Operating Income $10.1 $1.5% Change 556.8% (77.6)%% Margin 4.9% 0.9%

First Quarter


2016 2015

Appendix: Fire & Emergency

Sales impacted by: Higher fire apparatus volume

Operating income impacted by: Higher sales volume

Backlog up 28% vs. prior year to $898 million

Q1 Comments



Appendix: Commercial

Sales impacted by: Lower concrete mixer volume Higher RCV volume

Operating income impacted by: Lower sales volume Unfavorable warranty

Backlog up 14% vs. prior year to $270 million

Q1 Comments

Net Sales $200.3 $210.2% Change (4.7)% 9.1%

Operating Income $8.9 $12.4% Change (28.3)% 20.9%% Margin 4.4% 5.9%

First Quarter


2016 2015



Appendix: Commonly Used Acronyms

15January 28, 2016OSK First Quarter 2016 Earnings Call

ARFF Aircraft Rescue and Firefighting MRAP Mine Resistant Ambush ProtectedAWP Aerial Work Platform MSVS Medium Support Vehicle System (Canada)CapEx Capital Expenditures NOL Net Operating LossCNG Compressed Natural Gas NPD New Product DevelopmentDGE Diesel Gallon Equivalent NRC National Rental CompanyDoD Department of Defense OCO Overseas Contingency OperationsEAME Europe, Africa & Middle East OH OverheadEMD Engineering & Manufacturing Development OI Operating IncomeEPS Diluted Earnings Per Share OOS Oshkosh Operating SystemFHTV Family of Heavy Tactical Vehicles OPEB Other Post-Employment BenefitsFMS Foreign Military Sales PLS Palletized Load SystemFMTV Family of Medium Tactical Vehicles PUC Pierce Ultimate ConfigurationGAAP U.S. Generally Accepted Accounting Principles R&D Research & DevelopmentGAO Government Accountability Office RCV Refuse Collection VehicleHEMTT Heavy Expanded Mobility Tactical Truck RFP Request for ProposalHET Heavy Equipment Transporter ROW Rest of WorldHMMWV High Mobility Multi-Purpose Wheeled Vehicle SMP Standard Military Pattern (Canadian MSVS)IRC Independent Rental Company TACOM Tank-automotive and Armaments CommandIT Information Technology TDP Technical Data PackageJLTV Joint Light Tactical Vehicle TPV Tactical Protector VehicleJPO Joint Program Office TWV Tactical Wheeled VehicleJROC Joint Requirements Oversight Council UCA Undefinitized Contract ActionJUONS Joint Urgent Operational Needs Statement UIK Underbody Improvement Kit (for M-ATV)L-ATV Light Combat Tactical All-Terrain Vehicle UK United KingdomLVSR Logistic Vehicle System Replacement ZR Zero Radius

M-ATV MRAP All-Terrain Vehicle



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 (in millions, except per share amounts):

Three Months EndedDecember 31, 2014

Adjusted defense segment operating income (non-GAAP) 6.4$ OPEB curtailment/settlement 3.4 Defense segment operating income (GAAP) 9.8$

Adjusted operating income (non-GAAP) 62.3$ OPEB curtailment/settlement 3.4 Operating income (GAAP) 65.7$

Adjusted earnings per share-diluted (non-GAAP) 0.41$ OPEB curtailment/settlement, net of tax 0.02 Earnings per share-diluted (GAAP) 0.43$



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 (in millions):

Fiscal 2016Expectations

Net cash flows provided by operating activities 375.0$ Additions to property, plant and equipment (100.0) Free cash flow 275.0$

Q1 2016 earnings slides final

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