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

MOVING THE WORLD AT WORK Oshkosh Corporation (NYSE:OSK) Baird’s 2015 Industrial Conference November 10, 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 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; the Company’s estimates of access equipment demand; 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; 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 sales as a result of the outcome of a competitor’s protest of the JLTV production contract award to the Company; the Company’s ability to finalize an international contract for more than 1,000 M-ATVs, with the majority of the units sold in fiscal 2016; 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 and regulations 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. 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. MOVING THE WORLD AT WORK Baird's 2015 Industrial Conference November 10, 2015 2

Oshkosh Corporation Access Equipment Defense Fire & Emergency Commercial  Market Capitalization (1) :  $3.3 billion  Leading provider of specialty vehicles  FY15 Revenue: $6.1 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 November 2, 2015 MOVING THE WORLD AT WORK Baird's 2015 Industrial Conference November 10, 2015 3

Oshkosh Corporation Profile - FY15 Revenue by Segment Revenue by Geography 56% 79% 15% 7% 16% 9% 13% 5% Access Equipment Defense Fire & Emergency Commercial United States Other NA EAME Rest of World  Continuing to evolve to a more global industrial − Defense growing faster than other segments MOVING THE WORLD AT WORK Baird's 2015 Industrial Conference November 10, 2015 4

FY15 Results Compared with FY14  Full year results negatively impacted by: OSK Full Year Performance – Trough in Defense earnings – Mid-cycle dip in Access $10.0 $5.00 Equipment demand $8.0 $4.00  Set foundation for strong $3.62 Adjusted EPS** Net Sales $6.8 (billions) $6.1 $3.02 Defense earnings growth $6.0 $3.00  Sustained margin enhancement $4.0 $2.00 at Fire & Emergency and Commercial $2.0 $1.00  Repurchased 4.9 million shares $0.0 $0.00 or 6.1% of outstanding shares FY15 FY14 Net Sales Adjusted EPS*  Announced 12% dividend increase effective November  FY16 EPS estimate range of $3.00 to $3.40 MOVING THE WORLD AT WORK * Non-GAAP results. See Appendix for reconciliation to GAAP results. Baird's 2015 Industrial Conference November 10, 2015 5

Expectations for FY16  Revenues of ~ $6.2 - $6.5 billion  Operating income of $400 million to $440 million  EPS of $3.00 to $3.40 Segment information Access Fire & Measure Defense Commercial Equipment Emergency Sales $2.9 to $3.05 ~ $1.55 ~ $0.9 ~ $1.0 (billions) Operating ~ 10.5% ~ 8.75% ~ 6.0% ~ 7.0% Income Margin Quarterly commentary Additional expectations  Corporate expenses of $145 - $150 million  Earnings weighted to second half  Tax rate of ~ 34%  Increased international M-ATV sales  CapEx of ~ $100 million  Seasonality   Free Cash Flow* ~ $350 million Cautious construction equipment customers  First quarter slightly profitable  Assumes share count of ~ 75 million MOVING THE WORLD AT WORK * Non-GAAP results. See Appendix for reconciliation to GAAP results. Baird's 2015 Industrial Conference November 10, 2015 6

Positive Near-Term Outlook Despite Some Short-Term Challenges  Defense segment  Access Equipment segment – Pursuing significant international – Softer Q1/Q2 demand growth opportunities for FY16 & FY17 – Actively managing costs and – Re-started FHTV production inventory levels – Aftermarket opportunities growing – Strong underlying drivers – Won U.S. DoD JLTV contract  Fire & Emergency and Commercial segments  Raises Oshkosh profile with DoD  Provides strong Defense business base – Higher market shares beginning in FY18 – Higher margin initiatives – Higher backlog at Y/E FY15 MOVING THE WORLD AT WORK Baird's 2015 Industrial Conference November 10, 2015 7

Oshkosh L-ATV is JLTV Anything Else is Something Less  Named winner of intensive competition on August 25, 2015  Program requirements of ~55,000 vehicles over 20+ years – Oshkosh contract valued at $6.7B for ~17,000 vehicles over 8 years – Full rate production begins in 3+ years  Highly protected, extreme mobility, affordable  Oshkosh viewed in new light by DoD  Significant international interest  Confident to retain contract following protest MOVING THE WORLD AT WORK Baird's 2015 Industrial Conference November 10, 2015 8

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 …In FY16 and Beyond Baird's 2015 Industrial Conference November 10, 2015 9

Capital Allocation Contributing to TSR (1) Disciples of “The Outsiders” Annualized Dividend Payment # Outstanding Shares 95 $0.90 $0.80 ~27% Increase 90 $0.70 ~21% Reduction $0.60 85 $0.50 $0.40 80 $0.30 $0.20 75 $0.10 $0.00 70 FY13 FY14 FY15 FY16E 09/30/12 09/30/13 09/30/14 09/30/15  Aggressively retiring shares at favorable prices; $805 million allocated to share repurchases in FY13 - FY15  Reinstated dividend in December 2013; increased twice in two years (1.65% yield (2) ) (1) Total shareholder return (2) As of October 30, 2015 E = Estimated MOVING THE WORLD AT WORK Baird's 2015 Industrial Conference November 10, 2015 10