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 Third Quarter Fiscal 2014 Wilson R. Jones President and Chief Operating Officer July 29, 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 pace of U.S. and European economic recoveries; the strength of emerging market growth and projected adoption rate 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; 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; the duration of the ongoing 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; the impact of cyber security risk 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 Third Quarter 2014 Earnings Call July 29, 2014 2

Q3 Performance Highlights  Adjusted EPS* of $1.23 OSK Fiscal Q3 Performance  Improved access equipment $2.5 $2.00 and commercial performance $2.2 $1.67 $1.75 $1.9 Adjusted EPS* offset by expected lower $2.0 $1.50 Net Sales $1.23 (billions) $1.25 defense results $1.5 $1.00  Narrowing FY14 adjusted $1.0 $0.75 $0.50 EPS* range to $3.40 to $3.55 $0.5 $0.25 $0.0 $0.00  Announced quarterly dividend FY14 FY13 Net Sales Adjusted EPS* of $0.15 per share MOVING THE WORLD AT WORK Non-GAAP results. See Appendix for reconciliation to GAAP results. * OSK Third Quarter 2014 Earnings Call July 29, 2014 3

Positive Outlook  Non-defense markets improving, although not all at pace expected at 2012 Analyst Day  Importantly, North American markets are strong  MOVE strategy, powered by the Oshkosh Operating System, is delivering  Expected to continue contributing to margin expansion in non-defense segments in 2015 and beyond  Continuing to pursue international defense opportunities MOVING THE WORLD AT WORK OSK Third Quarter 2014 Earnings Call July 29, 2014 4

Defense  Completed workforce reduction to match lower production volume  Scalable capacity to ramp-up for potential new vehicle programs  JLTV activities  Completed 200,000 RAM miles to support EMD testing  Participated in DoD’s production draft RFP industry session  Work continues on multiple international opportunities MOVING THE WORLD AT WORK OSK Third Quarter 2014 Earnings Call July 29, 2014 5

Access Equipment  Record quarterly sales and operating income  In spite of EAME market at ~50% of prior peak  Highest Q3 sales growth rates in EAME and Asia  Solid demand continues in North America  Strong fleet metrics  Slowdown in Latin America  Positive customer response to recent new product launches 1850AJ at work MOVING THE WORLD AT WORK OSK Third Quarter 2014 Earnings Call July 29, 2014 6

Fire & Emergency  Positive operational trends evidenced later in quarter  Reflects MOVE benefits  Expect continued improvement in Q4 and into 2015  Multi-unit international deliveries expected in Q4  Slight pause in U.S. market recovery  Not expected to be a trend MOVING THE WORLD AT WORK OSK Third Quarter 2014 Earnings Call July 29, 2014 7

Commercial  Highest quarterly operating income margin since 2007  North America concrete mixer market still ~40% below normal  Expect slightly higher U.S. RCV sales in 2014  Remain focused on driving improved segment results  Expect greater benefits in 2015 MOVING THE WORLD AT WORK OSK Third Quarter 2014 Earnings Call July 29, 2014 8

Consolidated Results (Dollars in millions, except per share amounts) Third Quarter Comments 2014 2013  Sales impacted by: Net Sales $1,932.4 $2,204.4 ‒ Significantly lower defense volume % Change (12.3)% 2.1% + Access equipment and concrete mixer demand Adjusted Operating Income* $175.3 $225.6  EPS impacted by: % Change (22.3)% 78.8%  Lower defense sales % Margin 9.0% 10.2%  Prior year discrete tax benefits + Improved access equipment Adjusted EPS* $1.23 $1.67 and commercial results % Change (26.3)% 116.9% * Non-GAAP results. See Appendix for reconciliation to GAAP results. MOVING THE WORLD AT WORK OSK Third Quarter 2014 Earnings Call July 29, 2014 9

Updated Expectations for FY14 • Revenues of $6.7 billion to $6.75 billion • Adjusted operating income* of $490 million to $505 million • Adjusted EPS* of $3.40 to $3.55 Segment information Access Fire & Measure Defense Commercial Equipment Emergency Sales $3.40 - $3.425 $1.725 - $1.75 ~$0.775 ~$0.85 (billions) Operating ~14.6% ~4.75%* ~3.5% ~6.0% Income Margin Additional expectations  Corporate expenses ~$10 million higher than adjusted FY13*  Tax rate* of ~32.0%  CapEx of ~$100 million Free cash flow* ~$100 million   Assumes share count of ~86.0 million MOVING THE WORLD AT WORK * Non-GAAP results. See Appendix for reconciliation to GAAP results. OSK Third Quarter 2014 Earnings Call July 29, 2014 10

MOVING THE WORLD AT WORK For information Patrick N. Davidson Vice President, Investor Relations contact: (920) 966-5939 pdavidson@oshkoshcorp.com Jeff Watt Director, Investor Relations (920) 233-9406 jwatt@oshkoshcorp.com

Appendix: Access Equipment (Dollars in millions) Comments Third Quarter  Sales impacted by: 2014 2013  Higher volumes, particularly Net Sales $1,039.2 $941.5 EAME and North America % Change 10.4%* 15.6%  Higher pricing  Lower U.S. military telehandler Operating Income $166.8 $154.5 sales  Operating Income impacted by: % Change 8.0% 75.1%  Higher sales volume % Margin 16.0% 16.4%  Cost reduction initiatives  NPD spending  Higher operating costs  Backlog down 21.6% vs. prior year to $487 million (down 19.3% excluding military telehandlers) MOVING THE WORLD AT WORK * 13.2% excluding military telehandlers. Non-GAAP results. See Appendix for reconciliation to GAAP results. OSK Third Quarter 2014 Earnings Call July 29, 2014 12