MOVING THE WORLD AT WORK Oshkosh Corporation (NYSE:OSK) 2015 Annual Shareholders’ Meeting February 3, 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 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 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; 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 January 27, 2015. 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 2015 Annual Shareholders' Meeting February 3, 2015 2
MOVING THE WORLD AT WORK 2015 Annual Shareholders’ Meeting Charlie Szews - Chief Executive Officer February 3, 2015 MOVE: Enjoy the Ride 2015 Annual Shareholders' Meeting February 3, 2015 3
MOVING THE WORLD AT WORK Compared with “The Outsiders” Outstanding Total Shareholder Returns 2015 Annual Shareholders' Meeting Total Return (%) 1,000 1,500 2,000 2,500 3,000 3,500 500 0 Mar-96 Sep-96 Mar-97 Sep-97 Mar-98 Sep-98 Mar-99 Sep-99 Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Source: NYSE March 29,1996 to December 31, 2014 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 February 3, 2015 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 TDY GD BRK.A S&P 500 OSK 4
MOVING THE WORLD AT WORK Reflections on Fiscal 2014 2015 Annual Shareholders’ Meeting February 3, 2015 5
MOVE Impact Evident in Strong Full Year FY14 Results FY14 adjusted EPS* of $3.62, OSK Full Year Performance above high end of Company’s initial estimates $10.0 $5.00 Non-Defense markets continued $7.7 $8.0 $4.00 $3.74 Adjusted EPS* $3.62 Net Sales $6.8 to recover (billions) $6.0 $3.00 Strong new product launches $4.0 $2.00 Advantageous capital allocation $2.0 $1.00 – Repurchased 8.3 million shares for $403 million $0.0 $0.00 FY14 FY13 – Raised quarterly dividend in Net Sales Adjusted EPS* October 2014 Oshkosh Operating System improving customer satisfaction MOVING THE WORLD AT WORK * Non-GAAP results. See Appendix for reconciliation to GAAP results. 2015 Annual Shareholders' Meeting February 3, 2015 6
Non-Defense Segment Sales Growth Despite challenges from …we have grown non-defense lower defense spending… sales at a solid pace... Non-Defense Segment Sales Consolidated Net Sales ($ billions) ($ billions) $6.0 $10.0 $8.0 $4.0 $6.0 $4.0 $2.0 $2.0 $0.0 $0.0 Net Sales Net Sales FY12 FY13 FY14 FY12 FY13 FY14 MOVING THE WORLD AT WORK 2015 Annual Shareholders' Meeting February 3, 2015 7
Non-Defense Operating Income Growth …and grown non-defense operating income even faster Consolidated Adjusted Non-Defense Segment Operating Income* Operating Income* ($ millions) ($ millions) $700 $700 $600 $600 $500 $500 $400 $400 $300 $300 $200 $200 $100 $100 $0 $0 Non-Defense Operating Income* Adjusted Operating Income** FY12 FY13 FY14 FY12 FY13 FY14 MOVING THE WORLD AT WORK * Non-GAAP results. See Appendix for reconciliation to GAAP results. 2015 Annual Shareholders' Meeting February 3, 2015 8
Capital Allocation Contributing to TSR (1) Annualized Dividend Payment # Outstanding Shares 95 $0.80 13% Increase $0.70 >12% Reduction 90 $0.60 (Shares in millions) $0.50 85 $0.40 $0.30 80 $0.20 $0.10 75 $0.00 FY13 FY14 FY15(P) 70 09/30/12 09/30/13 09/30/14 Aggressively retiring shares at favorable prices; $605 million allocated to share repurchases in FY13 and FY14 Reinstated dividend with > 1% yield in December 2013; announced 13% increase to dividend in October 2014 (1) Total shareholder return P = Projected MOVING THE WORLD AT WORK 2015 Annual Shareholders' Meeting February 3, 2015 9
MOVING THE WORLD AT WORK Our Company – Strong Brands, Market Leaders 2015 Annual Shareholders’ Meeting February 3, 2015 10
Access Equipment – The Market Leader 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 MOVING THE WORLD AT WORK 2015 Annual Shareholders' Meeting February 3, 2015 11
Defense – Reduced Cost Structure with Upside Opportunities Implemented necessary operations changes to match lower demand Canada MSVS program award decision expected by July 2015 $30 billion JLTV program award decision expected in September 2015 – DoD projects initial 8 year contract over $9 billion Continuing pursuit of sales of thousands of M-ATVs – Middle East and North Africa – Eastern Europe – Reset opportunities in U.S. MOVING THE WORLD AT WORK 2015 Annual Shareholders' Meeting February 3, 2015 12
Fire & Emergency – Operational Improvements Leading to Bright Future Stepped back to better execute business improvement roadmap – Expect margins to improve throughout FY15 International progress continues – Manchester, UK ARFF deliveries Saber Chassis Strong orders for new Enforcer and Saber chassis North American fire truck demand remains soft – Slow market growth expected in FY15 Enforcer Chassis MOVING THE WORLD AT WORK 2015 Annual Shareholders' Meeting February 3, 2015 13
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