MOVING THE WORLD AT WORK Charles L. Szews Oshkosh Corporation - PowerPoint PPT Presentation

MOVING THE WORLD AT WORK Charles L. Szews Oshkosh Corporation Chief Executive Officer Fourth Quarter Fiscal 2014 Wilson R. Jones President and Chief Operating Officer October 31, 2014 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, which are particularly impacted by the strength of U.S. and European economies; the strength of emerging market growth and projected adoption rates 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 lower customer orders in the defense segment; the Company’s ability to win a U.S. JLTV 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 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; 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; the impact of severe weather or natural disasters that may affect the Company, its suppliers or its customers; cyber security 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 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 OSK Fourth Quarter 2014 Earnings Call October 31, 2014 2

On the MOVE!  FY14 adjusted EPS** of $3.62, above high end of Company’s initial guidance  FY15 adjusted EPS** estimate range of $4.00 - $4.25 within Company’s 2012 Analyst Day EPS target range for FY15  Non-Defense markets continue to recover, generally slower than 2012 Analyst Day expectations  Oshkosh O, V, & E initiatives expected to meet or exceed Analyst Day targets for FY15 $4.50 Adjusted EPS**  Leveraging balance $4.00 sheet strength $3.50 $3.00  Defense segment offers $2.50 $2.00 biggest upside opportunities $1.50 $1.00 $0.50 $0.00 FY12* FY13* FY14 FY15F MOVING THE WORLD AT WORK * Continuing operations only. ** Non-GAAP results. See Appendix for reconciliation to GAAP results. OSK Fourth Quarter 2014 Earnings Call October 31, 2014 3

Solid Q4 Performance to Close Out FY14  Adjusted results above both prior OSK Fiscal Q4 Performance year and high end of most recent expectations $2.0 $1.25 $1.7 $1.8 $1.7 – Led by continued strong access Adjusted EPS** $0.96 $1.6 $1.00 equipment segment performance Net Sales $1.4 (billions) $1.2 $0.75  Repurchased 5.2 million shares $1.0 $0.49 for $250 million $0.8 $0.50 $0.6  Raising quarterly cash dividend $0.4 $0.25 to $0.17 per share $0.2 $0.0 $0.00  Announcing FY15 adjusted EPS** FY14 FY13* Net Sales Adjusted EPS** estimate range of $4.00 to $4.25 MOVING THE WORLD AT WORK Continuing operations only * ** Non-GAAP results. See Appendix for reconciliation to GAAP results. OSK Fourth Quarter 2014 Earnings Call October 31, 2014 4

MOVE Impact Evident in Strong Full Year Results  Operating income margins increased in all non-Defense OSK Full Year Performance segments – Led by access equipment $10.0 $5.00 segment $7.7 $8.0 $4.00 $3.74 $3.62 Adjusted EPS**  Strong new product launches; $6.8 Net Sales (billions) more to come $6.0 $3.00  Advantageous capital allocation $4.0 $2.00 – Repurchased 8.3 million shares $2.0 $1.00 for $403 million – Reinstated quarterly dividend $0.0 $0.00 FY14 FY13*  OOS activities have driven Net Sales Adjusted EPS** improvement  Work remaining at Pierce to improve operating income margins MOVING THE WORLD AT WORK Continuing operations only * ** Non-GAAP results. See Appendix for reconciliation to GAAP results. OSK Fourth Quarter 2014 Earnings Call October 31, 2014 5

On Track to Achieve in FY15… FY15 Initiative FY15 Targets Estimate …Bottom Line Results for Shareholders (1) Compared with FY12 expectations as of September 2012 Analyst Day. (2) Net of investment costs and compared with consolidated FY11 operating income margins. MOVING THE WORLD AT WORK Non-GAAP results. See Appendix for reconciliation to GAAP results. * OSK Fourth Quarter 2014 Earnings Call October 31, 2014 6

Defense  Successfully concluded JLTV EMD testing – Expect formal Production RFP to be released in November  Continue to pursue international programs – Additional M-ATV sales and Canadian MSVS  Re-purposed production facilities – Announced additional workforce reductions  Expect operating loss in FY15 Q1 & Q2; marginally profitable for year – FHTV production break while new contract is finalized – Investing in pursuit of JLTV and international contract awards MOVING THE WORLD AT WORK OSK Fourth Quarter 2014 Earnings Call October 31, 2014 7

Access Equipment  MOVE delivered in FY14 – Exciting new products – Strong incremental margins – Record revenues, operating income and operating income margin  Continued growth expected in FY15 – Moderate growth in North America – Mixed outlook in other regions  Recent European economic slowdown muting impact of aged fleets and growing UK market  Middle East strong / Latin America softer  Pacific Rim expected to grow; slow recovery in Australia  Increased market competitiveness MOVING THE WORLD AT WORK OSK Fourth Quarter 2014 Earnings Call October 31, 2014 8

Fire & Emergency  Stepped back to better execute business improvement roadmap – Expect FY15 Q1 operating loss  International progress continues  Strong orders for new Enforcer and Saber chassis  North American fire truck demand remains soft – Slow market growth expected in FY15 MOVING THE WORLD AT WORK OSK Fourth Quarter 2014 Earnings Call October 31, 2014 9

Commercial  Solid improvement in FY14 – Strong yr/yr concrete mixer sales – Early stage investments in MOVE initiatives began to impact performance  Expect continued market recovery in FY15 – Modest U.S. housing market growth expected to drive mixer market – Slow growth in refuse collection vehicle market  Success with split-bin and automated units MOVING THE WORLD AT WORK OSK Fourth Quarter 2014 Earnings Call October 31, 2014 10