Oshkosh Corporation Second Quarter Fiscal 2012 April 26, 2012 MISSION DRIVEN : To Move the World at Work Charles L. Szews President and Chief Executive 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 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; the expected level and timing of the DoD’s 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; increasing commodity and other raw material costs, particularly in a sustained economic recovery; the ability to increase prices to offset higher input costs; risks related to facilities consolidation and alignment, including costs and charges thereof and that anticipated cost savings may not be achieved; the Company’s ability to produce vehicles under the FMTV contract at targeted margins; 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; the consequences of financial leverage, which could limit the Company’s ability to pursue various opportunities; 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 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 April 26, 2012. 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. MISSION DRIVEN: To Move the World at Work OSK Second Quarter 2012 Earnings Call April 26, 2012 2
Oshkosh Q2 FY12 Results Sales of $2.08 billion and EPS* of $0.41 OSK Fiscal Q2 Performance Access equipment market $3,000 $3.00 recovery led the way $2,500 $2.50 $2,075 Defense segment mix shift Net Sales (millions) $2,000 $2.00 $1,746 towards FMTV continued EPS* $1,500 $1.50 Investments in MOVE $1,000 $1.00 $0.74 initiatives continue $0.41 $500 $0.50 – Optimizing costs $0 $0.00 FY12 FY11 – Product innovation activities Net Sales EPS – Emerging markets growth * EPS results in FY12 include costs of $3.6 million, or $0.02 per diluted share, net of income tax benefits, related to the proxy contest in connection with the Company’s 2012 annual shareholders’ meeting and charges of $2.4 million, or $0.02 per diluted share, net of income tax benefits, related to the Company’s exit from the U.S. mobile medical product line and workforce reductions at Pierce. MISSION DRIVEN: To Move the World at Work OSK Second Quarter 2012 Earnings Call April 26, 2012 3
Market Conditions Business fundamentals support a continued access equipment recovery – North America remains strongest region – Successful Intermat show in Paris FY13 Presidential budget request contains lower proposed future defense funding – $3.9 billion defense backlog at March 31 – Competing for multiple new vehicle and lifecycle sustainment programs U.S. fire truck market remains challenging – Continuing to pursue international sales opportunities Improved sales environment for RCVs and concrete mixers MISSION DRIVEN: To Move the World at Work OSK Second Quarter 2012 Earnings Call April 26, 2012 4
Operations Update Improved margins in access equipment segment – Romania & China production progressing Broad-based cost reduction continues – Integrated project teams continue to drive product, process and overhead cost reductions – Continued improvement in FMTV margins – Improving ambulance production – Exited U.S. mobile medical product line – Right-sized Pierce staffing levels – Commercial segment assembly changes expected to deliver improved operational efficiency MISSION DRIVEN: To Move the World at Work OSK Second Quarter 2012 Earnings Call April 26, 2012 5
Operations Update, continued Extended Oshkosh Operating System launch and lean mindset – Actions support MOVE strategy Multiple new product launches at spring trade shows – Rental Series scissor lifts – Expansion of Dash CF product offering – Ground Mobility Vehicle Global expansion announcements – Canadian defense program management office – Multiple defense business development hires – Breakthrough into European airports MISSION DRIVEN: To Move the World at Work OSK Second Quarter 2012 Earnings Call April 26, 2012 6
Consolidated Results (Dollars in millions, Second Quarter Comments except per share amounts) 2012 2011 Sales impacted by: Net Sales $2,075.3 $1,745.6 + Traditional access equipment demand % Change 18.9% (39.1)% + Higher FMTV volume – Lower FHTV volume – Lower defense Operating Income* $75.9 $132.4 aftermarket parts sales % Change (42.7)% (73.2)% Margins impacted by: % Margin 3.7% 7.6% – Adverse sales mix in defense segment + Higher access equipment Earnings Per Share* $0.41 $0.74 segment margins % Change (44.6)% (77.0)% $32 million of debt reduction * Operating income and EPS results in FY12 include costs of $3.6 million, or $0.02 per diluted share, net of income tax benefits, related to the proxy contest in connection with the Company’s 2012 annual shareholders’ meeting and charges of $2.4 million, or $0.02 per diluted share, net of income tax benefits, related to the Company’s exit from the U.S. mobile medical product line and workforce reductions at Pierce. MISSION DRIVEN: To Move the World at Work OSK Second Quarter 2012 Earnings Call April 26, 2012 7
Updated Expectations for FY12 Measure Access Defense Fire & Commercial Equipment Emergency Sales* 35% - 40% 10% - 15% Up slightly ~15% higher higher lower Operating Income 7.5% - 8.0% Nearly 5% Breakeven Low single Margin digits Slightly higher corporate expenses – Proxy contest costs Tax rate of 32% to 34% Second half EPS modestly higher than first half CapEx of $75 to $85 million Modestly positive free cash flow * All comparisons are vs. FY11. MISSION DRIVEN: To Move the World at Work OSK Second Quarter 2012 Earnings Call April 26, 2012 8
MISSION DRIVEN : To Move the World at Work 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 Second Quarter Sales impacted by: 2012 2011 Global demand, led by North America Net Sales $760.4 $471.2 Price increase % Change 61.4% (53.3)% Margins impacted by: + Improved absorption related Operating Income $68.4 $17.7 to higher volumes % Margin 9.0% 3.8% + Price increase + Improved product mix Higher material costs and new product development spending Backlog up 58% vs. prior year to $941 million MISSION DRIVEN: To Move the World at Work OSK Second Quarter 2012 Earnings Call April 26, 2012 10
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