Oshkosh Corporation First Quarter Fiscal 2013 January 25, 2013 Charles L. Szews Chief Executive Officer Wilson R. Jones President and Chief Operating Officer David M. Sagehorn Executive Vice President and Chief Financial Officer Patrick N. Davidson Vice President, Investor Relations
Forward-Looking Statements This presentation includes 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,” “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, especially in the current environment where there are conflicting signs regarding the global economic outlook and the ability of the U.S. government to resolve budgetary and debt issues; the expected level and timing of the U.S. DoD procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; the ability to comply with laws and regulations applicable to U.S. government contractors; the 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 the Company’s exit from its ambulance business, including the amounts of related costs and charges; 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 weakness, 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; the potential for the U.S. government to competitively bid the Company’s Army and Marine Corps contracts; 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; risks related to actions of activist shareholders; 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 press release. 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. 2 OSK First Quarter 2013 Earnings Call January 25, 2013
Strong Start to Fiscal 2013 • Adjusted EPS* of $0.60 OSK Fiscal Q1 Performance – Results exceeded $3,000 $1.00 expectations $2,500 • Margins expanded in all non- $0.75 Adjusted EPS* defense segments Net Sales $1,876 $2,000 $0.60 $1,761 (millions) – Exceeded expectations in $1,500 $0.50 $0.39 defense $1,000 $0.25 • Generated $39 million in free $500 cash flow* $0 $0.00 FY13 FY12 • Repurchased 4.25 million Net Sales EPS shares • Increasing FY13 Adjusted EPS* estimates to a range of $2.80 to $3.05 Non-GAAP results. See appendix for reconciliation to GAAP results. * 3 OSK First Quarter 2013 Earnings Call January 25, 2013
Strong Foundation Supporting Outlook for FY13 and Beyond • MOVE strategy provides direction and focus – Framework drives daily actions – Already delivering results • Benefiting from strengthening U.S. housing market • Large delivery orders received for core defense programs Source: National Association of Home Builders 4 OSK First Quarter 2013 Earnings Call January 25, 2013
Defense • Strong execution led to outperformance • Awarded ~$800M of DoD contracts in Q1, solidifying sales outlook for existing U.S. programs through FY14 – FHTV – FMTV • Initial U.A.E. M-ATV shipments ahead of schedule • Progressing on JLTV EMD program; building 22 test units 5 OSK First Quarter 2013 Earnings Call January 25, 2013
Access Equipment • North American market remains strong – Driven largely by replacement equipment – Key metrics remain solid – Independents increasingly active • Global markets mixed – Europe remains soft – Year over year sales growth in Latin America and Pacific Rim • Strong backlog growth in Q1 6 OSK First Quarter 2013 Earnings Call January 25, 2013
Fire & Emergency • Improved results despite markets that remain soft – Evidence of municipal demand stabilizing, but federal spending still declining • Timing of international deliveries benefited quarter • Florida operations continue to improve • Ambulance business wind down expected to be complete in Q2 7 OSK First Quarter 2013 Earnings Call January 25, 2013
Commercial • Benefiting from housing market recovery – Concrete mixer orders continue to grow – Aftermarket parts and service growth continues • Refuse collection fleets continue to embrace CNG • Remain focused on operational improvements to deliver higher margins 8 OSK First Quarter 2013 Earnings Call January 25, 2013
Consolidated Results (Dollars in millions, except per share amounts) First Quarter Comments 2013 2012 • Sales impacted by: Net Sales $1,761.0 $1,875.7 ‒ Lower defense M-ATV and related aftermarket parts % Change (6.1)% 10.5% volumes + Non-defense demand Adjusted + Timing of deliveries Operating Income* $97.7 $79.2 • Margins impacted by: % Change 23.3% (56.4)% + Price realization % Margin 5.6% 4.2% + Improved fire & emergency performance Adjusted EPS* $0.60 $0.39 • Repurchased 4.25 million shares at aggregate cost % Change 53.8% (63.9)% of $125 million * Non-GAAP results. See Appendix for reconciliation to GAAP results. 9 OSK First Quarter 2013 Earnings Call January 25, 2013
Updated Expectations for FY13* • Revenues of $7.4 billion to $7.7 billion • Adjusted operating income of $420 million to $455 million • Adjusted EPS from continuing operations of $2.80 to $3.05 Segment information Access Fire & Measure Defense Commercial Equipment Emergency Sales $2.8-$3.0 $3.2-$3.3 $0.72-$0.75 $0.72-$0.75 (billions) Operating ~10.5% ~6.5% 2.0%-2.5% 4.5%-5.0% Income Margin Additional expectations Comments on Second Quarter • Expect to benefit from seasonally • Adjusted corporate expenses ~$130 - $135 million driven construction demand and (share-based compensation and higher IT investment) U.A.E. M-ATV sales • Tax rate of ~32%; including R&D credit reinstatement benefit • CapEx of ~$60 million • Free cash flow $100 - $125 million FY13 expectations exclude certain non-GAAP adjustments (see Appendix) * Excludes impact of any additional share repurchases in Q2 – Q4 ** • Share count** of ~89 million 10 OSK First Quarter 2013 Earnings Call January 25, 2013
For information contact: Patrick N. Davidson Vice President, Investor Relations (920) 966-5939 pdavidson@oshkoshcorp.com Tina Schmiedel Director, Investor Relations (920) 233-9235 tschmiedel@oshkoshcorp.com
Appendix: Access Equipment (Dollars in millions) Comments First Quarter • Sales impacted by: 2013 2012* Elimination of intersegment Net Sales $581.3 $627.7 M-ATV sales to defense segment % Change (7.4)% 91.8% Higher telehandler and aftermarket volume in North America Adjusted Price realization Operating Income** $48.9 $12.6 • Margins impacted by: % Change 289.3% 342.3% Price realization % Margin 8.4% 2.0% Lower intersegment sales Product mix • Backlog down 2.3% vs. prior year to $767 million Up sharply from prior quarter due to timing of orders from * FY12 results include $122.6 million of intersegment revenue for M-ATV production. large rental customers ** Non-GAAP results. See Appendix for reconciliation to GAAP results. 12 OSK First Quarter 2013 Earnings Call January 25, 2013
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