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8/9/2019 Oshkosh 2013AAG

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MOVING THE WORLD AT WORK

Oshkosh Corporation At A Glance


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OSHKOSH CORPORATION IS MOVING THE WORLD AT WORK

Oshkosh Corporation is a leading designer,manufacturer and marketer of a broad rangeof access equipment, specialty military, fire &emergency and commercial vehicles and vehiclebodies. Oshkosh’s products are valued worldwideby rental companies, defense forces, concreteplacement and refuse businesses, fire & emergencyunits and municipal and airport services, where high

quality, superior performance, rugged reliabilityand long-term value are paramount.

Oshkosh Corporation partners with customers todeliver superior solutions that safely and efficientlymove people and materials at work, around theglobe and around the clock. In short, we areMoving the World at Work. Our top priorities are to serve and delight our customers as well asdrive superior returns for our shareholders.

Founded in 1917, Oshkosh Corporation hasmanufacturing operations in eight U.S. states andin Australia, Belgium, Canada, China, France andRomania and through an investment in a jointventure in Mexico. The company currentlyemploys approximately 12,000 people worldwide.

FORWARD-LOOKING STATEMENTS This document 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 othistorical 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 obfor future operations, are forward-looking statements. When used in this document, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variatterminology 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 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, commemarkets, especially with the current tepid outlook for the U.S. and European economic recoveries and the struggles the U.S. government has encountered trying to resolve budgetary and debt issues; the strength of emerging markadoption rate of work at height machinery; the expected level and timing of the DoD procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budgand 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; twin 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 recoveryconsolidation 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 weakness, which could lead to additional impto 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 busiconstruction 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 operationscurrency 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 abon its strategic road map and meet its long-term f inancial goals. All forward-looking statements speak only as of November 13, 2013. The Company assumes no obligation, and disclaims any obligation, to update information conInvestors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.

© Oshkosh Corporation 2013

WILSON R. JONESPresident and Chief Operating Officer

CHARLES L. SZEWSChief Executive Officer


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*Adjusted earnings per share from continuing operations excludes net of taxadjustments, including performance share valuation adjustments of $0.05, chargeassociated with the curtailment of pension and other postretirement benefit plansof $0.02, costs incurred in connection with a proxy contest of $0.05 and discretetax benefits of $0.49 from GAAP reported earnings per share of $2.67.

Oshkosh CorporationEPS OPPORTUNITY:

Nearly Doubleby FY15

$2.30*

$4.00 to$4.50

FY15EFY12

HIGHER INTERNATIONAL SALES

International revenue goal of

>25% of total revenues byFY15 and~30% by FY16

MERGING MARKETEXPANSIONE

Delivering Value for Shareholders

Our MOVE strategy supports Oshkosh Corporation’stransformation to a stronger, global industrial company.

ARKET RECOVERYAND GROWTH MNON-DEFENSE OPERATING INCOME GROWT

$220 million opportunityin FY15 compared with FY12

Capture full upside of economicrecovery and market growth withstrong focus on execution andconquest sales.

PTIMIZE COST &

CAPITAL STRUCTURE

OOPERATING INCOME MARGIN IMPROVEMEN

Targeting operating income

margin improvement of250 bps by FY15(1)

Optimize our cost and capitalstructure to provide value forcustomers and shareholders.

ALUE INNOVATION

VINCREMENTAL REVENUE

Driving~$350 millio incremental annual revenue by FY15(2)

Continue to lead in innovationover the entire product life cycle.

Drive international growth intargeted geographies.

(1) Net of investment costs and compared with consolidated FY11 operating income margins.

(2) Compared with FY12 expectations as of Analyst Day, September 2012.


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Fiscal Year Ended September 30

FY11 FY12 FY13Income Statement Data:Net sales $7,538.5 $8,141.1 $7,665.1Operating income 526.1 387.7 505.7Adjusted operating income* 533.9 404.7 534.8

Income from continuing operations attributable to Oshkosh Corporation 290.6 244.6 314.3 Per share assuming dilution 3.18 2.67 3.53 Adjusted per share assuming dilution* 3.11 2.30 3.74Depreciation 77.9 65.5 65.3Amortization of purchased intangibles, deferred financing costs and stock based compensation** 79.9 83.2 85.9Balance Sheet Data:Total assets 4,826.9 4,947.8 4,765.7Net working capital 762.8 990.0 1,172.7Cash and cash equivalents 339.0 540.7 733.5Long-term debt (including current maturities) 1,060.1 955.0 955.0Oshkosh Corporation shareholders’ equity 1,596.5 1,853.5 2,107.8Other Financial Data:Book value per share 17.48 20.24 24.36Backlog 6,478.4 4,046.2 2,838.0Expenditures for property, plant and equipment 82.3 55.9 46.0*Non-GAAP results. See below for GAAP to Non-GAAP Reconciliation.

**Includes amortization of deferred financing costs of $5.1 million in FY11, $7.0 million in FY12 and $4.9 million in FY13.

FINANCIAL HIGHLIGHTS(In millions, except per share amounts)

Oshkosh Corporation // P.O. Box 2566 // Oshkosh, WI USA 54903-2566 // 920.235.91www.oshkoshcorporation.com

ALL TRADEMARKS ARE PROPERTY OF THEIR RESPECTIVE OWNERS. OSK0060-IR-A

NET SALES($ in millions)

40% Access Equipment

40% Defense

10% Fire & Emergency

10% Commercial

82% North America

12% Europe, Africa,

Middle East

6% Rest of World

NET DEBT* ATSEPTEMBER 30

($ in millions)

RETURN ONINVESTED CAPITAL*

OPERATING INCOME*($ in millions)

FY13 NET SALESBY SEGMENT*

FY13 NET SALESBY REGION*

’11 ’11’11’12 ’12’12’13 ’13’11 ’12 ’13 ’13

$ 7

, 5 3 8

. 5

$ 7

, 6 6 5

. 1

$ 8

, 1 4 1

. 1

1 2

. 6 %

1 2

. 8 %

1 0

. 6 %

$ 7 2 1

. 1

$ 2 2 1

. 5

$ 4 1 4

. 3

Fiscal year

*Net Debt is Long-term debt(including current maturities)

less Cash and cash equivalents

*Sales to external customers *See GAAP to Non-GAAPReconciliation

*ROIC is Income from continuingoperations (excluding impairmentcharges) plus the after-tax cost of

interest expense divided by averagetotal capitalization

$ 3 8 7

. 7

$ 5 2 6

. 1

$ 5 0 5

. 7

GAAP

$ 4 0 4

. 7

$ 5 3 3

. 9

$ 5 3 4

. 8

Non-GAAP

’11 ’12 ’13

GAAP to Non-GAAP Reconciliation FY11 FY12 FY13

GAAP earnings per share diluted $ 3.18 $ 2.67 $3.53Restructuring-related charges 0.04 — —Union contract ratication costs — — 0.03Performance share valuation adjustment — 0.05 —Curtailment expense — 0.02 —Tender offer and proxy contest costs — 0.05 0.12Impairment charge 0.01 — 0.06Discrete tax benets (0.12) (0.49) —

Non-GAAP earnings per share diluted $ 3.11 $ 2.30 $3.74

GAAP to Non-GAAP Reconciliation FY11 FY12 FY13

GAAP operating income $526.1 $387.7 $505.7Restructuring-related charges 5.8 — —Union contract ratification costs — — 3.8Performance share valuation adjustment — 7.0 —Curtailment expense — 3.4 —Tender offer and proxy contest costs — 6.6 16.3Impairment charge 2.0 — 9.0

Non-GAAP operating income $533.9 $404.7$534.8


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ACCESS EQUIPMENT

➤ Access equipment demand in NorthAmerica driven by fleet replacement

➤ Improving residential constructionactivity expected to expand growthbeyond North American replacementcycle

➤ Expect non-residential constructionrecovery to follow residentialconstruction recovery

➤ European market trailing NorthAmerican market with expectationof a slow recovery

➤ Australia impacted by mining weakness

➤ Pacific Rim adoption rates vary greatly;longer-term opportunity

➤ Demand in emerging markets driven bymarket penetration, product adoption,safety and infrastructure applications

➤ Work-at-height, safety regulations andincreasing labor rates driving structuralchanges to job site requirements

➤ Recovering U.S. market for towingequipment

➤ Aerial work platforms: Articulatingboom lifts; electric articulating boomlifts; telescopic boom lifts; mast-styleboom lifts; trailer mounted boom lifts;

compact crawler booms; scissors andelectric mast lifts; and stock pickingproducts

➤ Telehandlers: Expansive product linetargeted at construction, agricultureand military markets

➤ Personal portable lift: Push aroundand Liftpod®

➤ Refurbished and pre-owned equipment

➤ Towing and recovery equipment:Standard, medium and heavy dutywreckers and carriers, and self-loadingwreckers

➤ Services: Aftermarket parts; all-makesparts; call center support; in-shopand mobile service; warranty service;training; refurbishment services; andproduct financing

➤ Global leader in access equipment

➤ Premium brand recognized for strongperformance, innovation, technologyand quality

➤ Single-source global solution providerof access equipment, aftermarketparts support, pre-owned equipment,refurbishment services and financing

➤ Technology, manufacturing and supplychain synergies with multiple companysegments

➤ Innovative equipment designs andsystem technologies throughout broadproduct lineup

➤ Global manufacturing and distribution

➤ Leading brand of towing equipmentin U.S.

Brands Industry OutlookProducts and Services Competitive Advantages

JLG IS POSITIONED FOR SUSTAINED INDUSTRY LEADING PERFORMANCE


Sales to external customers grew 11.7% in fisca2013. FY11 and FY12 included sales to defensesegment of $108M and $125M, respectively.

$ 2

, 0 5 2

. 1

’11 ’13

$ 3

, 1 2 0

. 8

’12

$ 2

, 9 1 9

. 5


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DEFENSE


DEFENSE INDUSTRY EXPERTISE THAT LEVERAGES THE FULL CAPABILITIES OF OSHKOSH CO

➤ Family of Heav y Tactical Vehicles(FHTV):• Heavy Expanded Mobility Tactical

Truck (HEMTT),• Heavy Equipment Transporter (HET),• Palletized Load System (PLS)

➤ Family of Medium Tactical Vehicles(FMTV)

➤ Logistic Vehicle System Replacement(LVSR)

➤ Medium Tactical Vehicle Replacement(MTVR)

➤ MRAP All-Terrain Vehicle (M-ATV)Family of Vehicles

➤ Light Combat All-Terrain Vehicle(L-ATV), the Oshkosh JLTV solution

➤ HMMWV Modernization Solutions➤ P19 Aircraft Rescue and Fire Fighting

(ARFF) vehicle➤ High-mobility trailers➤ Integrated crew protection systems

and armor solutions➤ Life cycle support and services includes

C4I and systems integration, fleetmaintenance, diagnostics and repairs,training, spare and repair partssupport, and fleet refurbishment andmodernization services

➤ Strong brand recognized for superiorvehicle performance and integratedlife cycle support

➤ Comprehensive offering of tacticalwheeled vehicles, technologies,components, and sustainment services

➤ Broad product portfolio; MRAP, light,medium and heavy tactical wheeledvehicles

➤ Programs of record for the U.S. Army’sFHTV and FMTV

➤ The leading provider of high-mobilityMRAP vehicles (M-ATV) to militariesaround the globe

➤ Contender for the U.S. Joint LightTactical Vehicle (JLTV) con tract

➤ Flexible, cost-effective manufacturing,supply chain and quality managementcapability and capacity

➤ Total life cycle vehicle and componentsupport delivered worldwide, includingservice in theater

➤ Technical innovation leadershipincludes the energy saving ProPulse® hybrid diesel-electric and ProPulse® diesel-electric on-board vehiclepower, TAK-4® family of independentsuspension systems, TerraMax™unmanned groundvehicle andCommand Zone™ integrated controland diagnostic system

➤ Sequestration and declining U.S.defense budgets continue to putpressure on domestic new vehicleprograms

➤ Growth opportunities in several lighttactical vehicle programs such as JLTVand HMMWV Modernization

➤ Increased global demand for vehicleswith higher levels of off-road mobilityand survivability

➤ Ongoing demand for high performancevehicles for special forces

➤ Refurbishment and recapitalizationopportunities due to extended vehicleuse in harsh terrain and climates aswell as battle damage

➤ Continuing support required for U.S.Army Reserve and National Guard

➤ Growing global demand for survivabilityand efficiency driving new technologiesand services that provide:• Autonomous operability• Improved safety• C4I and systems integration• Integrated crew protection• Mission-based modularity• Fuel efficiency• Operational energy• Onboard system controls and

diagnostics and• Total life cycle cost management

Defense segment sales decreased22.8% in fiscal 2013.


$ 4

, 3 6 5

. 2

’11 ’13

$ 3

, 0 4 9

. 7

’12

$ 3

, 9 5 0

. 5


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FIRE & EMERGENCY


LEADING GLOBAL PROVIDER OF SPECIALTY VEHICLES THAT SERVE, PROTECT AND SAVE

➤ Innovation leader and manufacturer ofNorth America’s top fire truck brand,Pierce

➤ Leading global position for ARFF andairport snow-removal vehicles

➤ Largest distribution and servicenetworks

➤ First to introduce side roll protection,front air bags and electronicstabilitycontrol in custom fire apparatus

➤ Strong acceptance of Pierce UltimateConfiguration (PUC) design technology

➤ Over 30 years building market leadingcustom chassis, including the gamechanging Dash® CF

➤ Improving cost structure for complexvehicles

➤ Comprehensive product lines for fireand Homeland Security applications

➤ Market leadership in broadcast andcommand vehicles

➤ Custom and commercial fire apparatus

➤ Rescue, law enforcement andHomeland Security apparatus

➤

Aircraft rescue and fire fighting (ARFF)vehicles

➤ Airport snow blower, broom and plowtrucks

➤ Broadcast and command vehicles

➤ Simulator shelters

➤ Product financing

➤ Aftermarket service

➤ Training

➤ Domestic fire market drivers stabilizing,modest municipal recovery underway

➤ Continued lower federal demand in 2014

➤

Aging North American fleets drivingdemand for fire apparatus

➤ Airport upgrades and new airports,especially in emerging markets, drivingstrong global demand for ARFF vehicles

➤ Increasing demand for more advancedtechnologies in emerging markets

➤ General emergencies driving demandfor multi-purpose vehicles with addedstorage space and integration ofcommunications systems

➤ Continuing emphasis on safety andrisk management

Fire & Emergency segment salesincreased 3.1% in fiscal 2013.


$ 7 5 4

. 1

’11 ’13

$ 7 9 2

. 4

’12

$ 7 6 8

. 6


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COMMERCIAL


INDUSTRY LEADING VEHICLES AND PARTS & SERVICE OFFERINGS IN THE AMERICAS

➤ Concrete: Rear-discharge mixers;front-discharge mixers; CNG fuelingsystems and installation services;concrete batch plants; all-makes parts;

aftermarket service; training andproduct financing

➤ Refuse: Refuse collection vehicles:rear loaders, front loaders, side loaders;container-handling equipment; CNGfueling systems and installationservices; air compressors; bin lifters;all-makes parts; aftermarket service;training and product financing

➤ Mechanics trucks; tire service trucks;lubrication trucks; telescopic andarticulating truck-mounted cranes;catch basin cleaners; hydraulic loaders;aftermarket service; training andproduct financing

➤ North American concrete mixer, batchplant and wallboard crane marketsimproving with housing recovery

➤ North American refuse marketexpected to grow slowly in FY14following modest decline in FY13

➤ Population growth and strongermunicipal spending environmenthelping drive demand for refusecollection

➤ Growing demand for energy-efficientand low emissions vehicles

➤ Growth in commercial constructiondriving demand in Central America,South America and the Middle East

➤ Leading North American manufacturerof refuse collection vehicles

➤ Top manufacturer of concrete mixersand batch plants for the Americas

➤ Broadest concrete mixer productlineup in industry

➤ Energy efficient leader withCNG-powered vehicles

➤ Leader in service vehicle and truck-mounted crane markets

➤ Best in class aftermarket serviceand support

➤ Direct distribution facilitates strongcustomer service and relationships

➤ Leveraging lift technologies,distribution networks and

manufacturing resources with defenseand access equipment segments

➤ Scalable and flexible manufacturing

Commercial segment salesincreased 10.0% in fiscal 2013.


$ 5 6 4

. 9

’11 ’13

$ 7 6 6

. 9

’12

$ 6 9 7

. 0