Oshkosh Corporation Fourth Quarter Fiscal 2013 October 31, 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 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, especially with the current tepid outlook for the U.S. and European economic recoveries and the struggles the U.S. government has encountered trying to resolve budgetary and debt issues; the strength of emerging market growth and projected adoption rate of work at height machinery; the expected level and timing of the DoD 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 the significant projected decrease in sales levels 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 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; 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; 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. 2 OSK Fourth Quarter 2013 Earnings Call October 31, 2013
Solid Q4 Performance to Close Out FY13 • Adjusted results above high end of most recent expectations* OSK Fiscal Q4 Performance – Solid performance despite $2,500 $1.00 expected decline in defense $2,051 segment $2,000 $1,727 $0.75 Adjusted EPS** • Margins expanded in both $0.64 Net Sales (millions) $1,500 Access Equipment and $0.49 $0.50 Commercial segments $1,000 • Reinstating quarterly cash $0.25 dividend $500 – $0.15 per share $0 $0.00 FY13 FY12 • Repurchased 0.7 million Net Sales EPS shares • Announcing FY14 EPS estimate range of $3.10 to $3.40 Continuing operations only * ** Non-GAAP results. See Appendix: Non-GAAP to GAAP Reconciliation. 3 OSK Fourth Quarter 2013 Earnings Call October 31, 2013
MOVE Impact Evident in Strong Full Year Results* • Operating income and EPS growth despite lower OSK Full Year Performance revenues – Revenue growth in all non- $10.0 $5.00 defense segments $8.1 $7.7 $8.0 $3.74 $4.00 Adjusted EPS** – Margins expanded in ALL Net Sales (billions) segments $6.0 $3.00 $2.30 • Generated $386 million of $4.0 $2.00 free cash flow** $2.0 $1.00 • Repurchased 6.1 million $0.0 $0.00 shares for $202 million FY13 FY12 Net Sales EPS • MOVE providing roadmap for business improvement toward FY15 targets • OOS activities maturing and driving improvement Continuing operations only * ** Non-GAAP results. See Appendix: Non-GAAP to GAAP Reconciliation. 4 OSK Fourth Quarter 2013 Earnings Call October 31, 2013
FY13 MOVE Scorecard On Track to Achieve FY15 Targets FY13 FY15 FY15 Targets Initiative Result 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. 5 OSK Fourth Quarter 2013 Earnings Call October 31, 2013
Defense • Staffing reductions consistent with lower production volume • Continue to pursue international programs – Additional M-ATV sales – Canadian MSVS • Submitted 22 JLTVs to DoD in August – Testing started despite government shutdown and sequestration • Extended union contract through 2021 6 OSK Fourth Quarter 2013 Earnings Call October 31, 2013
Access Equipment • MOVE drove significant operational achievements • North American replacement demand continued to be primary driver • Global conditions for 2014 expected to improve – Slow recovery in Europe; adverse weather further impacted several key markets in 2013 – Growth in the Middle East – Moderate growth in Latin America – Pacific Rim expected to grow; slow recovery in Australia • Announced annual price increase 7 OSK Fourth Quarter 2013 Earnings Call October 31, 2013
Fire & Emergency • Strong finish to the year • Municipal demand improving; federal demand likely has bottomed – Municipal order activity up in most regions • Improvements in Florida operations • Continued focus on global sales – Asia – South America 8 OSK Fourth Quarter 2013 Earnings Call October 31, 2013
Commercial • Early stage investments in MOVE strategy positively impacted performance • Improving U.S. residential construction market drove sales of concrete placement products – Strong yr/yr concrete mixer orders and deliveries – Competition becoming more aggressive • Refuse collection vehicle market down slightly in FY13 – Expected to grow in FY14 • Continued solid demand for CNG-powered units 9 OSK Fourth Quarter 2013 Earnings Call October 31, 2013
Consolidated Results (Dollars in millions, except per share amounts) Fourth Quarter Comments 2013 2012 • Sales impacted by: Net Sales $1,726.5 $2,050.5 – Lower defense volume % Change (15.8)% (2.5)% + Non-defense segment volumes Adjusted • Margins impacted by: Operating Income* $78.0 $108.9 ‒ Lower defense volume % Change (28.4)% 24.7% ‒ Higher corporate expenses % Margin 4.5% 5.3% + Improved access equipment and commercial performance Adjusted EPS* $0.49 $0.64 • Repurchased 0.71 million shares of OSK common % Change (23.4)% 30.6% stock * Non-GAAP results. See Appendix: Non-GAAP to GAAP Reconciliation. 10 OSK Fourth Quarter 2013 Earnings Call October 31, 2013
Expectations for FY14 • Revenues of $6.6B to $6.9B • Operating income of $455M to $490M • EPS of $3.10 to $3.40 Segment information Access Fire & Measure Defense Commercial Equipment Emergency Sales $3.3 - $3.4 $1.75 - $1.85 $0.80 - $0.825 $0.85 - $0.90 (billions) Operating 13.5% - 13.75% 3.5% - 3.7% 4.0% - 4.5% 6.75% - 7.0% Income Margin Additional expectations Comments on 2014 First Quarter • Expect EPS meaningfully lower • Corporate expenses flat with FY13 than Q1 FY13 result (higher IT and OOS investments) • Significantly lower defense sales • Tax rate of ~31% • Seasonal slowdown • CapEx of ~$80 million • MOVE investments • Free cash flow* ~$200 million • Assumes share count of ~86.5 million * Non-GAAP result. See Appendix: Non-GAAP to GAAP Reconciliation. 11 OSK Fourth Quarter 2013 Earnings Call October 31, 2013
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