MOVING THE WORLD AT WORK Oshkosh Corporation (NYSE:OSK) Stifel - PowerPoint PPT Presentation

MOVING THE WORLD AT WORK Oshkosh Corporation (NYSE:OSK) Stifel 2015 Industrials Conference June 16, 2015

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 press release, words such as “may,” “will,” “expect,” “target,” “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; 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 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 lower customer orders in the defense segment; the Company’s ability to win a U.S. Joint Light Tactical Vehicle production contract award and international defense contract awards; 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; 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 and regulations applicable to U.S. government contractors; the impact of severe weather or natural disasters that may affect the Company, its suppliers or its customers; 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 April 28, 2015. All forward-looking statements speak only as of April 28, 2015 except as specifically updated herein. 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. MOVING THE WORLD AT WORK Oshkosh Corporation Investor Presentation June 16, 2015 2

Oshkosh Corporation Access Equipment Defense Fire & Emergency Commercial  Market Capitalization (1) :  $4.2 billion  Leading provider of specialty vehicles  FY14 Revenue: $6.8 billion – Moving the World at Work  Focused on delivering value to  Nearly 100 years in business; customers and shareholders incorporated in 1917  Serial innovator of game changing new products (1) As of May 26, 2015 MOVING THE WORLD AT WORK Oshkosh Corporation Investor Presentation June 16, 2015 3

Oshkosh Corporation Profile – FY14 Revenue by Segment Revenue by Geography 51% 77% 25% 8% 13% 10% 11% 5% Access Equipment Defense Fire & Emergency Commercial United States Other NA EAME Rest of World  Non-Defense Segment Revenues and Operating Income Both Grew in FY14 MOVING THE WORLD AT WORK Source: Oshkosh Corporation 2014 Annual Report Oshkosh Corporation Investor Presentation June 16, 2015 4

A Positive Outlook for OSK  Expect Solid Performance in FY15 – Strong customer sentiment – Updating full year adjusted EPS* estimate range to $3.75 to $4.00  Positive Outlook Beyond FY15 – Additional market recovery opportunities in non-defense segments – Significant upside opportunities in defense – MOVE to deliver margin expansion and growth MOVING THE WORLD AT WORK * Non-GAAP results. See Appendix for reconciliation to GAAP results. Oshkosh Corporation Investor Presentation June 16, 2015 5

Basis for Positive Outlook MOVING THE WORLD AT WORK Oshkosh Corporation Investor Presentation June 16, 2015 6

MOVE Strategy Driving Performance  Focuses on drivers that create highest shareholder value  Supports higher margin targets across non- Defense businesses over the cycle MOVING THE WORLD AT WORK Oshkosh Corporation Investor Presentation June 16, 2015 7

Access Equipment – The Market Leader Reaching Out – Rising to Every Challenge  MOVE delivered in FY14  Expect continued growth in FY15 – Exciting new products – Moderate growth in North America and Europe – Strong incremental margins – Mixed outlook in other regions – Record revenues, operating income and operating income  Strong new product launches margin during the year MOVING THE WORLD AT WORK Oshkosh Corporation Investor Presentation June 16, 2015 8

Slow U.S. Construction Recovery is Continuing Housing Starts U.S. Non-Residential Spending Thousands $ Millions 1,200 650,000 1,100 1,000 600,000 900 800 550,000 700 600 500,000 500 400 450,000 Jan ‐ 2010 Jul ‐ 2010 Jan ‐ 2011 Jul ‐ 2011 Jan ‐ 2012 Jul ‐ 2012 Jan ‐ 2013 Jul ‐ 2013 Jan ‐ 2014 Jul ‐ 2014 Jan ‐ 2015 Jan ‐ 2010 Jul ‐ 2010 Jan ‐ 2011 Jul ‐ 2011 Jan ‐ 2012 Jul ‐ 2012 Jan ‐ 2013 Jul ‐ 2013 Jan ‐ 2014 Jul ‐ 2014 Jan ‐ 2015 Source: U.S. Census Bureau, June 1, 2015 Source: U.S. Census Bureau, May 19, 2015 U.S. Nonresidential Construction (yr/yr Growth) - Current Analyst Estimates U.S. Housing Starts - Current Annual Forecasts (millions ) Date 2014 2015 2016 Date 2014 2015 2016 Portland Cement Association Apr-15 8.2% 8.8% 8.3% Global Insight May-15 1.00 1.08 1.30 FMI Source Mar-15 6.0% 8.0% 7.0% Moody's - Slower Recovery May-15 1.00 1.11 1.42 Global Insight Mar-15 2.8% 2.2% 3.6% Moody's – Slower Recovery May-15 6.9% 3.6% 5.2% Portland Cement Association Apr-15 1.00 1.18 1.34 Construction Market Data Mar-15 3.9% 8.2% 8.6% Average Analyst Estimate 1.00 1.12 1.35 Dodge Data & Analytics Mar-15 13.5% 10.9% 13.0% Average Analyst Estimate 6.9% 7.0% 7.6% MOVING THE WORLD AT WORK Oshkosh Corporation Investor Presentation June 16, 2015 9

Operating Income Margin Expansion Remains a Priority ACCESS EQUIPMENT (Operating Income Margin %) 20.0% 18.0% 17% 16.0% 16 % ~ 14.5% 14.3% 14.0% 12.0% 10.0% FY14 FY15E Target  Expect biggest impact from optimize cost and value innovation initiatives still to come MOVING THE WORLD AT WORK Oshkosh Corporation Investor Presentation June 16, 2015 10

Defense – Reduced Cost Structure with Upside Opportunities Mission Proven – World-Class Performance  Believe FY15 will be trough year for  Continuing pursuit of sales of both revenues and operating income thousands of M-ATVs  Submitted proposal for JLTV program – International in February – Reset opportunities in U.S. – Expect decision on winning bidder  Generally favorable FY16 budget in August or September 2015 funding requests for our programs  Canada MSVS program award decision expected in June 2015 MOVING THE WORLD AT WORK Oshkosh Corporation Investor Presentation June 16, 2015 11