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Oshkosh Corporation 2016 Analyst Day Presentation

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Oshkosh Corporation 2016 Analyst Day Presentation

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Oshkosh Corporation 2016 Analyst Day Presentation

  1. 1. Oshkosh Corporation Analyst Day Executive Officer Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  2. 2. Oshkosh Corporation Analyst Day Pat Davidson Vice President, Investor Relations Executive Officer Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  3. 3. September 23, 2016Oshkosh Corporation Analyst Day 3 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, which are particularly impacted by the strength of U.S. and European economies and construction seasons; the Company’s estimates of access equipment demand which, among other factors, is influenced by customer historical buying patterns and rental company fleet replacement strategies; the strength of the dollar and its impact on Company exports, translation of foreign sales and purchased materials; the expected level and timing of U.S. DoD and international defense customer procurement of products and services and acceptance and funding or payments thereof; the Company’s ability to utilize material and components which it has committed to purchase from suppliers; higher material costs resulting from production variability due to uncertainty of timing of funding or payments from international defense customers; risks related to reductions in government expenditures in light of U.S. defense budget pressures, sequestration and an uncertain DoD tactical wheeled vehicle strategy; the impact of any DoD solicitation for competition for future contracts to produce military vehicles, including a future FMTV production contract; 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; projected adoption rates of work at height machinery in emerging markets; the impact of severe weather or natural disasters that may affect the Company, its suppliers or its customers; 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 compliance with the Foreign Corrupt Practices Act; the Company’s ability to comply with complex laws and regulations applicable to U.S. government contractors; cybersecurity 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 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.
  4. 4. Agenda September 23, 2016Oshkosh Corporation Analyst Day 4 8:00 am Welcome Pat Davidson Oshkosh Overview & Strategy Wilson Jones Defense John Bryant Access Equipment Frank Nerenhausen Commercial Brad Nelson Fire & Emergency Jim Johnson 10:00 am Break 10:20 am Financial Summary Dave Sagehorn Concluding Remarks Wilson Jones 11:00 am Q&A Panel All Presenters 12:00 pm Lunch/Wrap-up
  5. 5. Wilson Jones President and Chief Executive Officer Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  6. 6.  A different integrated global industrial  MOVE – Evolving to deliver more value  Positioned for long-term success 6 Oshkosh Corporation Key Messages September 23, 2016Oshkosh Corporation Analyst Day
  7. 7.  Leading provider of specialty vehicles  Nearly 100 years in business; incorporated in 1917  Focused on delivering value to customers and shareholders  Serial innovator of game- changing new products ACCESS EQUIPMENT DEFENSE FIRE & EMERGENCY COMMERCIAL 7 Moving the World at Work Making a Difference September 23, 2016Oshkosh Corporation Analyst Day
  8. 8. Oshkosh Corporation Profile – FY16YTD(1) 8 49% Access Equipment 20% Defense 15% Fire & Emergency 16% Commercial Revenue by Segment 77% United States 4% Other NA 12% EAME 7% Rest of World Revenue by Geography  Revenue growth in Defense and Fire & Emergency Segments  Delivering a stronger international mix (1) Through 06/30/16 September 23, 2016Oshkosh Corporation Analyst Day
  9. 9. Fire Apparatus 9 Concrete Mixers/Batch Plants #1Heavy Defense Trucks (Army & Marines) Medium Defense Trucks (Army & Marines) Light Defense Trucks (JLTV – beginning FY17) Airport Products (Rescue and Firefighting & Snow Removal) Aerial Work Platforms/Telehandlers Refuse Collection Vehicles Industry Leadership Strong Brands  Value Creation Wreckers & Carriers (1) Company estimates NORTH AMERICA RANK (1) #1 #1 #1 #1 #1 #1 #2 GLOBAL RANK (1) #1 September 23, 2016Oshkosh Corporation Analyst Day
  10. 10. MOVE Strategy Has Delivered FY13 - FY15 strong operational results offset by weaker than expected market recovery 10  Focused execution ‒ Improved cost structure ‒ New game-changing products  Strong results despite numerous challenges ‒ Slower than expected domestic construction rebound ‒ Slow growth in international markets ‒ Impact of weak oil & gas prices ‒ Strong U.S. dollar  Grew EPS(3) at ~10% CAGR September 23, 2016Oshkosh Corporation Analyst Day
  11. 11. MOVE Impact at Oshkosh Strong operational results Gained share in North America, despite a weaker than expected economic recovery Refuse Collection Vehicles Fire Trucks 11September 23, 2016Oshkosh Corporation Analyst Day
  12. 12. 12Oshkosh Corporation Analyst Day Generated cost savings of $200M, exceeding target by ~30% MOVE Impact at Oshkosh Strong operational results Fire & Emergency Access Equipment September 23, 2016
  13. 13. 13Oshkosh Corporation Analyst Day Extensive new product launches across the enterprise MOVE Impact at Oshkosh Strong operational results Ascendant two-axle ladder truck Revolutionary JLTV Defense offering Tier 4 compliant telehandlers September 23, 2016
  14. 14. 14Oshkosh Corporation Analyst Day International product launches and expanded sales & service presence MOVE Impact at Oshkosh Strong operational results ARFF sales into Europe Growth in Middle East sales with new M-ATV variants Extending the reach of access equipment across the globe September 23, 2016
  15. 15. A DIFFERENT INTEGRATED GLOBAL INDUSTRIAL
  16. 16. Leveraging Our Unique Position 16 Diverse End Markets Leverage Best Attributes of Two Distinct Approaches Integrated Operations September 23, 2016Oshkosh Corporation Analyst Day
  17. 17. Favorable and Diverse End Market Drivers 17  Defense recovery – JLTV ramp-up – Solid U.S. base program funding – International opportunities  U.S. construction slowly improving, though uneven – both residential and non-residential  Municipal spending recovering  Aging fleets in multiple markets  Significant access equipment product adoption opportunities globally – Despite current market challenges  Population growth and urbanization Mid to high single-digit FY16 to FY17 revenue growth – despite Access Equipment Segment expected decline September 23, 2016Oshkosh Corporation Analyst Day
  18. 18. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E Non-Defense Defense Annual OSK Revenues ($inBillions) (1) 1 2 3 4 Diversification strategy implemented in 1996 to grow organically and by acquisition Defense begins to accelerate in early 2000s as a result of 9/11 attacks and U.S. response Economic downturn of 2008-2010 and Middle East conflicts resulted in a more defense-centric company Non-defense businesses recovery in FY12 – FY15, led by Access Equipment, helped to offset a significant cyclical downturn in Defense Growing Defense business expected to drive performance beyond 2016 5 (1) Mid-point of Company guidance (1) 18 Historical Benefits of Diverse End Markets September 23, 2016Oshkosh Corporation Analyst Day 1 2 3 4 5
  19. 19. Integrated Enterprise Approach Drives Opportunity/Efficiency Across Business Segments 19  Global product development  Enterprise-wide operations  Global procurement and supply chain ‒ Leverage scale of OSK  One Oshkosh culture ‒ People, Purpose, Performance Take Advantage of Opportunities Unavailable to Many Companies September 23, 2016Oshkosh Corporation Analyst Day
  20. 20. Global Product Development 20  Common product development process  Shared expertise and technology ‒ Material science ‒ Modeling and simulation Structural design – booms and ladders ‒ Core technologies – electrical, hydraulics, powertrain, software, suspension/off-road expertise ‒ Design to cost  Engineering resource planning ‒ Managing through cycles ‒ Retain knowledge, reduce cost September 23, 2016Oshkosh Corporation Analyst Day
  21. 21. Enterprise-wide Operations 21  Lean culture as a foundation  Enterprise-wide capacity planning ‒ Leveraging standardized process drives improved utilization ‒ Manufacturing Centers of Excellence to optimize core competencies  Inter-segment manufacturing integration  Standardized manufacturing idea and information sharing for best practices  Strategic partnerships with preferred equipment suppliers ‒ Facilitates resource commonization and troubleshooting September 23, 2016Oshkosh Corporation Analyst Day
  22. 22. Global Procurement and Supply Chain  Diverse end markets lead to more stable demand; drives investment by OSK suppliers ‒ Vendor managed inventory ‒ Supplier Cost Reduction Idea Program (SCRIP) ‒ Long-term supply agreements ‒ Quality performance investments Oshkosh Corporation Analyst Day 22  Integrated Enterprise approach allows OSK to leverage size and scale ‒ Common suppliers across segments ‒ Centralized logistics ‒ Material order quantity optimization ‒ Global process adherence ‒ Global sourcing capabilities ‒ Training and education ‒ Transferability of talent September 23, 2016
  23. 23. 23 One Oshkosh Culture Motivated team members led by experienced management team  Building a stronger and deeper Oshkosh culture  Diverse and complementary backgrounds  Continually developing/acquiring talent  Acting decisively for shareholders Oshkosh Corporation Analyst Day September 23, 2016
  24. 24. MOVE – EVOLVING TO DELIVER MORE VALUE
  25. 25. 25 Grow profitably by maintaining intense focus on customer experience Optimize our costs and capital structure to provide value for customers and shareholders Lead in innovation over the product life cycle Drive international growth in targeted geographies Evolving to Deliver More Value September 23, 2016Oshkosh Corporation Analyst Day
  26. 26. Market Leader Delighting Customers Grow profitably by maintaining intense focus on customer experience 26 Enhance customer experience by:  Increasing use of standard processes and tools to drive consistent customer experience  Providing total customer care solutions over product life cycle  Expanding use of Advanced Product Quality Planning  Utilizing Voice of Customer to deliver superior products and solutions September 23, 2016Oshkosh Corporation Analyst Day
  27. 27. 27 Targeting ~$55 million yr/yr cost reduction in FY17  Build on current practices for product, process and overhead improvements ‒ Component commonality ‒ Supply chain optimization ‒ Weight reduction  Incrementally improve margins independent of volume through simplification actions September 23, 2016Oshkosh Corporation Analyst Day Optimize Cost and Capital Structure Optimize our costs and capital structure to provide value for customers and shareholders
  28. 28. Shared Production Facility in Mexico Strategically positioned for long-term cost competitiveness 28September 23, 2016Oshkosh Corporation Analyst Day  Cross-segment facility designed for growth ‒ Vertically integrated  Cutting  Bending  Machining  Welding  Paint  Final assembly  Provides alternatives for regional sourcing and distribution
  29. 29. 29 Organizational Simplification Focus on what drives value 20% 20% 80% 80% Activities Revenue & Profit ‒ Focus ‒ Innovate ‒ Grow September 23, 2016Oshkosh Corporation Analyst Day  Data-driven process  Provides a method to identify the “critical few” in our business  Objectively determines where to allocate time and resources
  30. 30. 30 Applying Simplification to the Business Commercial Segment: Simplify business approach at IMT Stable operating income despite ~20% revenue decline at IMT September 23, 2016Oshkosh Corporation Analyst Day Revenue OI % Simplification Activities Completed  Established core Simplify cross functional team  Segmented customers and products to identify value drivers  Reallocated resources to focus on higher value activities  Eliminated lower profitability/lower volume product offerings  Flattened organization to push down ownership and responsibility  Focused operations on eliminating waste and driving process improvement
  31. 31. Value Innovation Target 15 - 20% annual revenue(1) from new products in FY17  Continue innovation leadership  Further development of value/global products  Leverage benefits of multi- generational product and technology plans (1) Revenues from new products tracked through the first 24 months following the initial sale for all new products and new product development projects Next generation protection and mobility JLTV Game-changing 107 foot two-axle aerial Ascendant TM Aerial Ladder Balances high payload, low body weight JLG 1500AJP Articulating Boom Lift World’s tallest articulating boom lift Meridian Front-end Loader RCV 31September 23, 2016Oshkosh Corporation Analyst Day
  32. 32. 24% 0% 10% 20% 30% 40% 50% FY16E FY17E % of OSK Sales Outside U.S. Emerging Market Growth 32 Drive international growth in targeted geographies  ~15% - 20% increase in international sales – From estimated $1.5 billion in FY16 to an estimated $1.75 billion in FY17 – Driving international to 25% - 30% of OSK sales  Growth driven by Defense and Access Equipment  Expanding our reach across the globe (1) 25% - 30% September 23, 2016Oshkosh Corporation Analyst Day 24%
  33. 33. POSITIONED FOR LONG-TERM SUCCESS
  34. 34. Expecting to grow in FY17: – Revenue – Operating income – EPS  Favorable end markets for Defense, Fire & Emergency and Commercial  Managing costs and maintaining market leadership in a lower access equipment market  Low FY17 free cash flow due to increased working capital usage to support increased international sales, leads to strong free cash flow in FY18 Oshkosh Corporation (NYSE: OSK) FY16E FY17E % Growth(1) Revenue $6.1B - $6.2B $6.5B - $6.7B ~7% Operating Income $360M - $375M(2) $390M - $430M ~11% OI Margin % ~6.0%(2) 6.0% - 7.0% ~8% EPS $2.85 - $3.00(2) $3.00 - $3.40 ~10% (1) Calculated using rounded mid-point of Company FY16 & FY17 guidance (2) Non-GAAP results. See appendix for reconciliation to GAAP results (3) Source: NYSE/FactSet; calendar year analyst estimates 2016–2017 EPS Growth(3) S&P 500: ~14.0% Industrials: ~9.0% 34 Oshkosh Corporation The next 12 months September 23, 2016Oshkosh Corporation Analyst Day
  35. 35. Positive Long-term Outlook Convergence of favorable market dynamics and benefits of MOVE position OSK to deliver strong results 35September 23, 2016Oshkosh Corporation Analyst Day  Favorable market dynamics ‒ JLTV provides multi-year visibility for Defense ‒ Current access equipment replacement demand headwind becomes future tailwind ‒ Fleet ages help to drive Fire & Emergency and Commercial Segment demand  MOVE strategy will continue to drive results  Expected strong free cash flow over the cycle provides capital allocation alternatives A Different Integrated Global Industrial Company
  36. 36. 36 A different integrated global industrial MOVE – Evolving to deliver more value Positioned for long-term success Oshkosh Corporation Key Messages September 23, 2016Oshkosh Corporation Analyst Day
  37. 37. Oshkosh Corporation Analyst Day John Bryant President, Oshkosh Defense Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  38. 38. Defense Segment Key Messages Targeting high single-digit operating income margins over the next few years  #1 provider of light, medium, MRAP and heavy tactical wheeled vehicles in the world(1)  Winning strategy based on breakthrough technologies, operational agility, life cycle value and defense expertise that delivers exceptional technical, operational and economic value for our military customers  Solid budget visibility for the multi-year, multi-billion dollar U.S. JLTV program, as well as international market potential (1) Company estimates 38September 23, 2016Oshkosh Corporation Analyst Day
  39. 39. 92% 8% Defense Sales(1) U.S. DoD International Defense FY16 Estimates Revenue: ~$1.35 billion Operating income margin: ~8.5% Defense Segment Overview Tactical wheeled vehicles (TWV), integration & life cycle services for the defense industry  Global headquarters in Oshkosh, WI  Founded in 1917  The globally recognized leader in TWVs – More than 150,000 vehicles delivered and sustained – Customers in more than 20 countries – Logistics and support network that spans 6 continents – Comprehensive systems integration and life cycle products and services – Engineering and manufacturing advanced systems and components that drive value for our customers (1) FY15 sales from Oshkosh Corporation 10-K dated November 13, 2015 39September 23, 2016Oshkosh Corporation Analyst Day
  40. 40. Oshkosh Defense Vehicle and Systems Portfolio September 23, 2016Oshkosh Corporation Analyst Day 40 Heavy TWV Medium TWV & ARFF MRAP & Light TWV C4ISR & Systems Integration HEMTT HET LVSR FMTV MTVR P-19R ARFF M-ATV L-ATV / JLTV L-ATV / JLTV Unmanned Ground Vehicles Suspension Systems
  41. 41. Defense Aftermarket Products and Services September 23, 2016Oshkosh Corporation Analyst Day 41 Parts & Kits Training Technical Support Reset/Recap
  42. 42. Next-Generation Technologies from Shared R&D Support Our Growth Roadmap TAK-4® Family of Independent Suspension Systems Command Zone® Integrated Diagnostics TerraMax® Unmanned Ground Vehicle Technology ProPulse® Hybrid Diesel Electric NetReady C4ISR & Systems Integration 42September 23, 2016Oshkosh Corporation Analyst Day
  43. 43. JLTV A traditional 10+ year U.S. procurement process with a sophisticated Best Value evaluation methodology M-ATV Family of Vehicles An urgent U.S. requirement based on technical performance and schedule, followed by an Oshkosh-funded product strategy to address international markets FMTV A competition to leverage the U.S. Government owned technical data package to reduce cost and improve quality Continuous investment in breakthrough technologies Lean, agile operations Focus on providing exceptional life cycle value Defense contracting and compliance expertise 43September 23, 2016Oshkosh Corporation Analyst Day Defense Segment Strategy Leveraging deep experience, technical expertise and a strong team for the winning approach
  44. 44. JLTV Redefining Light TWV Performance Breakthrough technologies September 23, 2016Oshkosh Corporation Analyst Day 44 Next-Generation Protected Mobility Extending our portfolio of industry leading suspension technology Systems engineering for optimal survivability; Armor manufacturing Fully integrated networking and C4ISR for field ready vehicles
  45. 45. Joint Light Tactical Vehicle (JLTV) U.S. JLTV Production Contract Overview  ~$6.7 billion  Base award plus 8 ordering years  Program scope includes: – 4 Mission Package Configurations – Mission Kits – Interim Contractor Support (ICS) – Total Package Fielding (TPF) – System Technical Support (STS) – Technical Data Package  Quantity: 18,000+ vehicles(1) – Vehicle deliveries expected through 2024 September 23, 2016Oshkosh Corporation Analyst Day 45 Utility 2Door4Door General Purpose Close Combat Weapons Carrier Heavy Guns Carrier Future Variants (1) Source: FY17 U.S. President’s Budget
  46. 46. U.S. JLTV Program Schedule September 23, 2016Oshkosh Corporation Analyst Day 46 FY17 President’s Budget Funding Request Order Quantity Sales Quantity FY16 804 FY17 2,020 ~750 FY18 3,377 ~2,000 FY19 4,603 ~3,000 FY20 5,019 ~4,500 FY21 2,764 ~5,000 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Deliveries & Testing Armor Coupon Testing Blast Hull Testing LRIP(1) YR 1 LRIP YR 2 LRIP YR 3 FRP(2) YR 1 FRP YR 2 FRP YR 3 Performance, Reliability & Live Fire Testing Full Rate Production Milestone Delivering unprecedented performance. On-time. On-budget. (1) Low Rate Initial Production (2) Full Rate Production
  47. 47. Global Light TWV Market Potential Today’s HMMWV Installed Base(1)  240,000 HMMWVs  60 countries  30+ configurations The Oshkosh JLTV Will Shape the History of Light Military Vehicles 53%47% Armor Capable HMMWV Unarmored HMMWV JLTV is Next-Generation Protected Mobility for the Modern Battlefield HMMWVJeep JLTV (1) Source: Government publications, IHS Jane’s, SIPRI, AM General Website 47September 23, 2016Oshkosh Corporation Analyst Day
  48. 48. Delivering Long-Term Value HEMTT 1981 2016 Heavy Expanded Mobility Tactical Truck 7,491 vehicles 35,000+ vehicles M-ATV Family of Vehicles 2009 2016 Mine Resistant Ambush Protected All-Terrain Vehicle 2,244 vehicles 10,000+ vehicles HEMTT A2 HEMTT A4 HEMTT Recap Base UIK Upgrade M-ATV Family of VehiclesRPG Upgrade HEMTT A0 HEMTT A1 HEMTT Reset Training JLTV 2015 2040E Joint Light Tactical Vehicle 16,901 vehicles(1) 55,000+ vehicles(2) 48September 23, 2016Oshkosh Corporation Analyst Day (1) Estimate of customer contractual requirements as of initial award date (2) Government stated estimate of quantity – subject to funding and production contract recompete
  49. 49. United States $560.40 Western Europe $217.03 Rest of Asia $189.04 China $181.98 Eastern Europe $90.80 Middle East $80.53 Saudi Arabia $47.61 Africa $38.77 Australia $29.63 Brazil $20.85 Rest of the Americas $22.10 Canada $14.66 Worldwide Defense Spending $0 $400,000 $800,000 Rest of World Next 15 countries United States $271,227 $661,776 $560,400 2015 Defense Spending (in millions, USD) Source: IHS Jane’s Defense Budgets 9/1/16 Positioned for International Growth via FMS* and DCS* Channels * FMS = Foreign Military Sales; DCS = Direct Commercial Sales 49September 23, 2016Oshkosh Corporation Analyst Day
  50. 50. Future Military Operating Environment  Increased velocity of change  Increased diversity of threats  Wider access to lethal & disruptive technologies  Adaptive & unpredictable enemies  Increased prevalence of urban warfare  Nation-on-nation conflicts more likely Budget Constraints Force Reductions Procurement Reform Increase Readiness Adaptable, Agile Force Multiple Conflicts & Threats Sources: Institute of Land Warfare Report, Sept 2015; Multiple US DoD Strategy Documents U.S. Defense Market Drivers & Constraints 50September 23, 2016Oshkosh Corporation Analyst Day
  51. 51. Defense Revenue Expectations September 23, 2016Oshkosh Corporation Analyst Day 51 $0 $1 $2 $3 $4 $5 $6 $7 $8 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E FY19E Net Sales (in billions) Revenue JLTV Non-JLTV Family of Heavy Tactical Vehicles (FHTV) Family of Medium Tactical Vehicles (FMTV) Joint Light Tactical Vehicle (JLTV) Medium Tactical Vehicle Replacement (MTVR) Logistics Vehicle System Replacement (LVSR) Global Integrated Product Support (GIPS) - Aftermarket U.S. M-ATV Global MRAP All-Terrain Vehicle (M-ATV) P-19R ARFF Targeting $1.7 - $2.0 billion of sales in FY17 – FY19 JLTV approaching ~50% of sales by FY19 (1) (1) (1) Mid-point of revenue range expectations
  52. 52. $4,365 $3,951 $3,050 $1,725 $940 ~$1,350 ~$1,850 12.4% 6.0% 7.4% 4.4% 1.0% ~8.5% ~9.5% 0% 2% 4% 6% 8% 10% 12% 14% $0 $1,000 $2,000 $3,000 $4,000 $5,000 FY11 FY12 FY13 FY14 FY15 FY16E FY17E Revenue Operating Income Margin Revenue & Margin on a Growth Trajectory Revenue ($ in millions) OI Margin % Estimates Revenue Expectations  FY16 and FY17 benefit from international M-ATV sales  Steady U.S. medium and heavy volumes  JLTV sales ramp begins in FY17; full-rate production begins in FY19 Operating Income Margin Expectations  OI margin increase vs. FY15 driven by higher sales volume, a balanced TWV product mix and steady aftermarket performance  Targeting high single-digit OI margin in FY18 – FY19 Financial information presented on a GAAP basis 52September 23, 2016Oshkosh Corporation Analyst Day
  53. 53. (1) Company estimates Defense Segment Summary Targeting high single-digit operating income margins over the next few years  #1 provider of light, medium, MRAP and heavy tactical wheeled vehicles in the world(1)  Winning strategy based on breakthrough technologies, operational agility, life cycle value and defense expertise that delivers exceptional technical, operational and economic value for our military customers  Solid budget visibility for the multi-year, multi-billion dollar U.S. JLTV program, as well as international market potential 53September 23, 2016Oshkosh Corporation Analyst Day
  54. 54. Oshkosh Corporation Analyst Day Executive Officer Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  55. 55. Frank Nerenhausen President, Access Equipment Segmentr Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  56. 56. 56September 23, 2016Oshkosh Corporation Analyst Day  Global leader in access equipment  Focused strategy built on simplifying the business, continuing to lead in innovation and expanding aftermarket parts and services  Well positioned for long-term global success as near-term headwind of replacement demand cycle becomes a tailwind and product adoption grows Access Equipment Segment Key Messages Targeting higher operating income margins across the cycle
  57. 57.  Global headquarters in Hagerstown, MD  Founded in 1969  Global market leader in access equipment  Global footprint: – 4 regional headquarters – 10 manufacturing facilities/4 continents – 19 sales and service centers – 4 parts distribution centers – 4 engineering centers  Sales through 3,500+ customer locations on 6 continents  Leader in towing and recovery 48% 33% 19% Access Equipment Sales(1) Aerial Work Platforms Telehandlers Other Access Equipment Segment Overview Aerial work platforms, telehandlers and towing equipment 57 Access Equipment FY16 Estimates Revenue: ~$2.95 billion Operating income margin: ~9.6%(2) September 23, 2016Oshkosh Corporation Analyst Day (1) FY15 sales from Oshkosh Corporation 10-K dated November 13, 2015 (2) Non-GAAP results. See appendix for reconciliation to GAAP results
  58. 58. Telehandlers (TMH) Low Pivot High Pivot Private Label Aerial Work Platforms (AWP) Boom Lifts Scissor Lifts Vertical Lifts Low-Level Access Wreckers Towing Equipment Rotators Carriers 58 Broad Product Portfolio September 23, 2016Oshkosh Corporation Analyst Day
  59. 59.  Fleet replacement cycle negatively impacting market as fleet growth flattens in mature markets (U.S. and Canada)  Positive outlook for modest growth in North American residential and nonresidential construction  Adoption and growth in Mexico while challenging business environment continues in Brazil Prior Peak 2012 2013 2014 2015 2016E 2017E 0 200 400 600 800 Residential CAGR 7.9% Nonresidential CAGR 1.4% North American Construction Forecast (Billion US $) Source: IHS Global Data; CAGR = 2012 to 2017 Source: Ducker Worldwide for IPAF; AWP = Booms, Scissor and Vertical Mast lifts 59 Access Equipment Market Trends: Americas September 23, 2016Oshkosh Corporation Analyst Day
  60. 60. (1) June 2016 IHS estimates (2) Internal modeling for industry unit shipments • Machine replacement cycle of around 7 - 8 years was correlated with an economic downturn in the previous 2 cycles (early 2000s and 2009/2010) • U.S. GDP forecasts do not predict a recessionary component in the short to medium-term view (current downturn driven by a pause in replacement only) North American Access Equipment Market Impact of business and replacement cycles 60 7 – 8 Years N.A. Market Shipments(2) Forecast N.A. Market Shipments(2) U.S. GDP Growth Forecast GDP Growth(1) 7 – 8 Years 7 – 8 Years September 23, 2016Oshkosh Corporation Analyst Day
  61. 61. Current North America Fleet Replacement Demand Negatively impacted by low sales during last recession… (1) Rouse Services: Age composition of Access Equipment of “Rouse 8” fleets in North America as of 6/30/2016 61 … Believe Becomes a Demand Driver in Future Years 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2016 Partial 2015201420132012201120102009 Model Year of Fleet Composition of Rental Fleet in 2016 as Percent of Total Units(1) Current Headwind September 23, 2016Oshkosh Corporation Analyst Day
  62. 62. Access Equipment Market Trends: EMEA  Construction trending flat in Europe and Africa  Fleet growth flattening in mature European markets; Southern European markets (Italy, Spain) beginning to recover  Volatility driving cautious approach  Turkey, Poland, South Africa and developing Middle East countries key to future growth  Rental fleet age in Europe estimated to be significantly higher than current North American fleet 0 200 400 600 800 1000 1200 1400 1600 1800 Prior Peak 2012 2013 2014 2015 2016E 2017E Residential CAGR 1.3% Nonresidential CAGR 0.3% Construction Forecast – Europe & Africa (Billion 2010 US $) Source: IHS Global Data; CAGR = 2012 to 2017 Source: Ducker Worldwide for IPAF; AWP = Booms, Scissor and Vertical Mast lifts 62September 23, 2016Oshkosh Corporation Analyst Day
  63. 63.  Growth rates have eased slightly in Asia but remain elevated versus other regions  Rental model proliferating in China, driving AWP growth  Replacement demand growing in Korea and Japan  Australian market focused on extending equipment life  Other markets of interest include: Taiwan, Thailand, Vietnam and Malaysia 0 500 1000 1500 2000 2012 2013 2014 2015 2016 2017 Residential CAGR 3.8% Nonresidential CAGR 9.2% Construction Forecast – China (Billion 2010 US $) Source: IHS Global Data; CAGR = 2012 to 2017 Source: Ducker Worldwide for IPAF; AWP = Booms, Scissor and Vertical Mast lifts 63 Access Equipment Market Trends: Asia-Pacific September 23, 2016Oshkosh Corporation Analyst Day
  64. 64. AWP Market CAGR: 1% – 2%(1) TMH Market CAGR: 4% – 6%(1) AWP Market CAGR: 2% – 4%(1) TMH Market CAGR: 4% – 6%(1) AWP Market CAGR: 1% – 2%(1) TMH Market CAGR: 2% – 3%(1) AWP Market CAGR: 2% – 6%(1) TMH Market CAGR: 2% – 4%(1) AWP Market CAGR: 8% – 10%(1) TMH Market CAGR: 5% – 8%(1) North America Latin America EMEA Pac Rim Australia Global AWP and TMH Market Outlook(1) 64September 23, 2016Oshkosh Corporation Analyst Day (1) FY16-FY21 CAGR based on internal estimates of market units
  65. 65. Simplify the business to reduce cost and complexity Expand our portfolio of aftermarket services Build on our history of innovation leadership Access Equipment Strategy Driving cash flow, creating leverage for the next cycle 65 Managing the business through the replacement cycle September 23, 2016Oshkosh Corporation Analyst Day
  66. 66.  Commercialize life cycle management by expanding the aftermarket portfolio  Grow in mature markets – West coast U.S. parts distribution center – Increase mobile service – Drive toward connectivity  Australia model well developed and successful – Australian service model has generated approximately 10% more service and parts revenue, as a percentage of sales, vs. current North American model 66 Expanding Our Aftermarket Portfolio September 23, 2016Oshkosh Corporation Analyst Day
  67. 67. ADAPTATIONS FOR ADJACENT MARKETS CORE PRODUCTS  New R Series Scissors MARKET EXPANDERS  World’s Tallest Articulating Boom  Hybrid 340AJ  53 ft Rough Terrain Scissor  New Compact Crawler Boom  14 ft LiftPod  New Agriculture Spec TMH  Power Towers Product Family EXPERIMENTAL/ BLUE OCEAN IDEAS 67 Innovation Leadership Fielded 24 innovative products in fiscal 2016 September 23, 2016Oshkosh Corporation Analyst Day
  68. 68. TRAINING ACCIDENT AVOIDANCE ROBOTICS  Training Simulators  Augmented Reality  SkyGuard  RFID  Obstruction Detection  Proactive Sensors  Autonomous Products 68 Innovation Leadership Pioneering new safety solutions September 23, 2016Oshkosh Corporation Analyst Day
  69. 69. $3.21 $2.05 $2.92 $3.12 $3.51 $3.40 ~$2.95 $2.7 – $2.8 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 FY08 FY11 FY12 FY13 FY14 FY15 FY16E FY17E Revenue Operating Income Margin Revenue Expectations  North American replacement demand pressures revenue in the short term  Low growth in EMEA and continued double-digit growth in Asia Pacific not sufficient to offset North America replacement demand declines Operating Income Margin Expectations  Focused on margin improvement initiatives through the North American replacement cycle  Cost reduction and simplification efforts mitigating a portion of volume, price and material cost headwinds Estimates 69 Revenue and Operating Income Outlook Managing cost during a period of lower demand 7.75%–8.5% ~9.6%(1) 12.0% 14.3% 12.2% 7.9% 3.2% 11.3% September 23, 2016Oshkosh Corporation Analyst Day (1) Non-GAAP results. See appendix for reconciliation to GAAP results. Other financial information presented on a GAAP basis Revenue ($ in billions) OI Margin %
  70. 70. Access Equipment Summary Targeting higher operating income margins across the cycle 70  Global leader in access equipment  Focused strategy built on simplifying the business, continuing to lead in innovation and expanding aftermarket parts and services  Well positioned for long-term global success as near-term headwind of replacement demand cycle becomes a tailwind and product adoption grows September 23, 2016Oshkosh Corporation Analyst Day
  71. 71. Brad Nelson President – Commercial Segment Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  72. 72.  Differentiated leader in North American refuse collection vehicle and concrete mixer markets with broad product lineup, operational scale and well-respected brands  Strategy focused on innovation, simplification and supporting customers through the product life cycle  Promising market fundamentals and elevated customer fleet ages drive performance opportunities Commercial Segment Key Messages Targeting 10% operating income margins over time Oshkosh Corporation Analyst Day 72September 23, 2016
  73. 73. Commercial Segment Overview  Global headquarters in Dodge Center, MN  Founded in 1970  Market-leading provider of RCVs, concrete mixers, mechanics trucks and concrete batch plants  Industry-leading scale and footprint: – Operations in U.S., Mexico and Canada – Outstanding service delivered through 30 company-owned branches with close proximity to customers – 76 domestic and 48 international dealers September 23, 2016 73 39% 47% 14% Commercial Sales(1) Refuse Concrete Other Refuse collection vehicles (RCV), concrete placement, field service vehicles Commercial FY16 Estimates Revenue: ~$1.0 billion Operating income margin: ~6.75% Oshkosh Corporation Analyst Day (1) FY15 sales from Oshkosh Corporation 10-K dated November 13, 2015
  74. 74. Diversified Market and Customer Balance 74  Industry leader in North America  Strong presence in Latin America provides balance  Diversified across multiple product lines and customer segments – Fleet – Independent/Private – Municipalities  Strong aftermarket parts and service helps stabilize revenue across cycle  Scale, scope and localized presence valued by customers of all sizes September 23, 2016Oshkosh Corporation Analyst Day
  75. 75. Aftermarket Concrete Mixers Rear Discharge Industry Leader with Broadest Product Line 75 Refuse Collection Vehicles Mechanics Trucks, Truck Mounted Cranes, Concrete Batch Plants Front Discharge Batch Plants Rear Loader Side Loader Dominator Articulating Cranes Front Loader BridgeMaster™ Branch Network Mobile Service eCommerce September 23, 2016Oshkosh Corporation Analyst Day
  76. 76. Technology and Innovation Leadership 76September 23, 2016Oshkosh Corporation Analyst Day
  77. 77. 0 2 4 6 8 10 12 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Average concrete mixer fleet age¹ Average fleet age in years 77 North American Concrete Mixer Market Outlook Poised for growth due to housing fundamentals and advanced fleet age  Concrete mixer market strongly correlated to housing starts  Fleet age is high; ~10 years  North American rear discharge concrete mixer market still below (~25%) long-term average  Despite solid construction activity, concrete mixer customers remain cautious  Home ownership at lowest level in 50 years  Slight tailwind expected from highway bill (FAST act) 0 50 100 150 200 250 300 350 400 450 500 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Rear discharge Front discharge Concrete yards poured Concreteyardspoured(000s) Concretemixerunits September 23, 2016 Concrete mixer market and yards of concrete poured² Oshkosh Corporation Analyst Day (1) Source: 2001-2014 Truck Mixer Manufacturing Bureau (TMMB) (2) Source: Mixer Units through 2015 from TMMB, Concrete Yards Poured through 2014 from National Ready Mix Association, 2016-2017 units company estimates, 2015-2016 yards poured company estimates
  78. 78. 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 225 235 245 255 265 275 285 FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15 MunicipalSolidWaste(tonsinmillions) U.S. Refuse collection vehicles and MSW¹ WASTEC Units MSW Generated -60% -40% -20% 0% 20% 40% -20% -15% -10% -5% 0% 5% 10% 15% FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15 U.S.RCVmarketYOYChange U.S. Refuse collection vehicles and single-family housing starts YOY change³ RCV domestic market YOY Change Single Family Housing Starts YOY change Single-familyhousingstartsYOYchangeU.S.RCVsales(units) 6.5% CAGR FY 11-16 U.S. Refuse Collection Vehicle Market Outlook Steadiness driven by fleet age, growth in GDP, construction and population 78  Fleet age elevated – Large operators >8 years(2)  Fleets seeing volume growth due to increase in waste generation  Share growth past 2 years  Solid municipal spending as tax receipts rebound  Expect waste hauling market consolidation to continue – Trend toward privatization  Housing starts drive higher waste volumes September 23, 2016Oshkosh Corporation Analyst Day (1) Municipal Solid Waste (MSW) 1999-2013 as reported by EPA, 2014 – 2016 OSK internal estimates, Refuse Collection Vehicles 1999 – 2015 Waste Equipment Technology Association (WASTEC), 2016 OSK Internal Estimates (2) Estimates based on publicly traded refuse company information and OSK internal estimates (3) Refuse Collection Vehicles 2005 – 2015 WASTEC, single-family housing starts as reported by IHS
  79. 79. • Differentiate through innovation and customer intimacy • Simplify • Diversify through the cycle • Enable our winning team Expand leadership positions in our markets through MOVE Commercial Segment Strategy 79September 23, 2016Oshkosh Corporation Analyst Day
  80. 80. Case Study: Aftermarket 80 Opportunity Initiatives and Timing Results Differentiation: Growth, stability and profit across the cycle  Investing in new branches and mobile service expansion  Customer proximity; now 30 parts and service locations  Capturing full product life cycle value  Compressed Natural Gas installs and inspections provide adjacent opportunity  Best in class eCommerce platform Whole Good Unit Sale: ~45% of potential life cycle profit Annuity Parts and Service: ~30% of potential life cycle profit Drum Replacement: ~15% of potential life cycle profit Used Truck Disposition: ~10% of potential life cycle profit  Commercial Segment aftermarket sales have grown at 14% CAGR from FY10 – FY15 Over half of total product life cycle profit comes after initial sale Concrete Mixer September 23, 2016Oshkosh Corporation Analyst Day FY10 FY11 FY12 FY13 FY14 FY15 Commercial Aftermarket Sales CommercialAftermarket Revenue 14% CAGR FY10-FY15
  81. 81. $565 $697 $767 $866 $978 ~$1,000 ~$1,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 0 200 400 600 800 1,000 1,200 FY11 FY12 FY13 FY14 FY15 FY16E FY17E Revenue Operating Income Margin Operating Income Margin Expectations  Operating income margin CAGR of 46% (FY11-17E)  MOVE investments in FY17 support long-term margin improvement Estimates 81 Long-Term Positive Outlook Near-term growth tempered by concrete mixer market caution Revenue Expectations  Share gains and increased aftermarket sales contributed to historical revenue growth  Market fundamentals and MOVE initiatives drive future growth September 23, 2016 0.7% 4.6% 5.3% 6.2% 6.6% ~6.75% ~6.75% Revenue ($ in millions) Oshkosh Corporation Analyst Day Financial information presented on a GAAP basis OI Margin %
  82. 82. 82September 23, 2016 Targeting 10% operating income margins over time  Differentiated leader in North American refuse collection vehicle and concrete mixer markets with broad product lineup, operational scale and well-respected brands  Strategy focused on innovation, simplification and supporting customers through the product life cycle  Promising market fundamentals and elevated customer fleet ages drive performance opportunities Oshkosh Corporation Analyst Day Commercial Segment Summary
  83. 83. Jim Johnson President – Fire & Emergency Segment Officer Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  84. 84.  Leader in U.S. fire truck and global airport products(1) with industry-leading brands, products and distribution network  Strategy focused on operational excellence, simplification and continuing to lead in innovation  Aging fleets and steady growth in municipal demand support solid outlook Fire & Emergency Segment Key Messages Oshkosh Corporation Analyst Day 84September 23, 2016 Targeting double-digit operating income margins in the near term (1) Aircraft Rescue and Firefighting (ARFF) and Snow Removal
  85. 85. 85 Fire & Emergency Segment Overview Fire trucks, airport products, communications vehicles 75% 18% 7%Fire & Emergency Sales(1) Fire Trucks Airport Products Other  Global headquarters in Appleton, WI  Founded in 1913  Operations in Wisconsin and Florida  Global distribution network with the strongest dealer network in the industry  Industry’s innovation and technology leader  Leading North American fire truck and airport products manufacturer Fire & Emergency FY16 Estimates Revenue: ~$950 million Operating income margin: ~6.75% (1) FY15 sales breakdown per internal Company financial data Oshkosh Corporation Analyst Day September 23, 2016
  86. 86. Pumpers Superior Product Portfolio 86 Aerials Rescues Military Simulators Blowers Brooms Broadcast Command ARFF Pierce® Fire Trucks Oshkosh Airport Products Frontline Communications Oshkosh Corporation Analyst Day September 23, 2016
  87. 87. • Operational excellence and simplification methodology to tailor the customer experience • First to market with disruptive technology and market- shaping new products • Leverage best-in-class global sales and service network • Collaborative environment that fosters empowerment, trust and personal initiative Innovate, Simplify, Serve 87 Fire & Emergency Strategy Leveraging the power of our brands and strength in technology to expand sales and operating margins globally Oshkosh Corporation Analyst Day September 23, 2016
  88. 88. 88 AerialsPumpersRescues Tankers Ladder Tiller Rear Mount Platform Mid Mount Platform Custom Custom PUC Commercial Mini Pumper Non-Walk-In Walk-In Dryside Elliptical Oshkosh Corporation Analyst Day September 23, 2016 Pierce Engineers and Builds a Full Spectrum of Vehicles for the Fire Service
  89. 89. 89 Continual Launch of New Products and Technology, Disruptive to the Industry TAK-4® Suspension Ascendant Aerial Command Zone™  Legacy of industry firsts - Independent suspension - Side and frontal airbags - Electronic stability control - Foam retardant systems - Multiplexing  Voice of customer: 10,000 – 12,000 visits per year Oshkosh Corporation Analyst Day September 23, 2016
  90. 90. Leading Dealer Network, Investing for Growth 90  Leading dealer network in North America, with global reach of sales, service and parts  In past 18 months, 11 dealers made investments totaling 200,000 sq feet of expansion  Pierce dealer MacQueen Equipment Group’s service facility in Saint Paul, MN MacQueen Equipment Service Center Sponsored video in Times Square Golden State Fire New Sacramento, CA Facility Oshkosh Corporation Analyst Day September 23, 2016
  91. 91. 91  Housing prices and local property taxes have continued to recover  Aging fleets coupled with improving state and local tax receipts have led to steady growth in municipal demand Domestic Fire Truck Market Drivers Gaining Momentum Oshkosh Corporation Analyst Day September 23, 2016 Increasing Home Prices and Property Taxes 1990 1995 2000 2005 2010 2015
  92. 92. MARKET EXPANDERS 92 EXPERIMENTAL/ BLUE OCEAN IDEAS  U.S. fire truck market has grown modestly off recession lows  New product innovations and broad product lineup driving share gains  Large cities placing multiple unit, multiple year orders has become more common  Pierce dealer network continues to invest in new sales and service infrastructure Trends for U.S. Fire Truck Market U.S. Fire Truck Market (units) U.S. Fire Truck market hasn’t recovered to pre-recession levels 0 1000 2000 3000 4000 5000 6000 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Oshkosh Corporation Analyst Day September 23, 2016
  93. 93. 93 Winning in Global Fire Truck and ARFF Markets(1) Latin America EMEA APAC North America Mexico Airport Authority 18 ARFF Peru and Puerto Rico 25 ARFF Australian Military 28 Air Transportable ARFF Multiple Provinces in China Over 100 Pierce Civil Aviation Authority, Philippines 41 ARFF Saudi Aramco, Saudi Arabia 22 Pierce Kuwait Fire Service 11 ARFF (1) Select bookings and deliveries from FY15 and FY16, in units Oshkosh Corporation Analyst Day September 23, 2016
  94. 94. $754 $769 $792 $757 $815 ~$950 ~$1,000 2.3% 1.1% 3.0% 3.5% 5.4% ~6.75% ~8.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 0 200 400 600 800 1,000 1,200 FY11 FY12 FY13 FY14 FY15 FY16E FY17E Revenue Operating Income Margin 94 Revenue Expectations  Recovering municipal spending coupled with share gains result in record backlog  Efficiency gains and capacity improvements yield improved output, revenue growth Operating Income Margin Expectations  Simplification activities, line rate increases and successful product launches all contributing to margin improvement Revenue Growth on Path to Exceed $1 Billion; Approaching Double-Digit Margin EstimatesRevenue ($ in millions) Financial information presented on a GAAP basis OI Margin % Oshkosh Corporation Analyst Day September 23, 2016
  95. 95. Fire & Emergency Segment Summary Targeting double-digit operating income margins in the near term  Leader in U.S. fire truck and global airport products(1) with industry-leading brands, products and distribution network  Strategy focused on operational excellence, simplification and continuing to lead in innovation  Aging fleets and steady growth in municipal demand support solid outlook (1) Aircraft Rescue and Firefighting (ARFF) and Snow Removal 95Oshkosh Corporation Analyst Day September 23, 2016
  96. 96. Oshkosh Corporation Analyst Day Executive Officer Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  97. 97. Dave Sagehorn Chief Financial Officer Executive Officer Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  98. 98. September 23, 2016Oshkosh Corporation Analyst Day 98 Oshkosh Corporation Focused on creating shareholder value  Defense, Fire & Emergency and Commercial Segments’ performance offsetting near-term Access Equipment Segment headwinds  Expected strong free cash flow over the cycle  Responsible capital allocation strategy
  99. 99. MACRO OVERVIEW AND FINANCIAL OUTLOOK
  100. 100. Oshkosh Corporation Analyst Day 100 U.S. GDP and Housing Starts 2.7% 1.8% -0.3% -2.8% 2.5% 1.6% 2.3% 2.2% 2.4% 2.6% 1.8% 2.4% 2.3% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 U.S. GDP (YoY % change) U.S. Housing Starts (Millions) Current Forecast(1) Actual (1) Source: U.S. GDP and Housing Starts average of PCA, IHS, Moody’s and ITR projections as of August 24, 2016  Positive, slow growth expected for GDP and housing starts(1)  Population growth expected to continue to support higher projected housing starts over the long term  Macroeconomic growth coupled with aging fleet dynamics supports demand drivers 1.8 1.3 0.9 0.6 0.6 0.6 0.8 0.9 1.0 1.1 1.2 1.3 1.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 September 23, 2016
  101. 101. Oshkosh Corporation Analyst Day 101 U.S. Non-residential Construction and Municipal Spending 5.1% 15.4% 7.3% -7.0% -13.7% -5.9% 4.0% -3.2% 3.6% 7.9% 4.1% 2.3% 3.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 U.S. Non-residential Construction (YoY % change) 0.9% 1.5% 0.3% 1.6% -2.7% -3.3% -1.9% -1.0% 0.6% 2.8% 2.4% 3.5% 3.1% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 U.S. Municipal Spending (YoY % change) Current Forecast(1) Actual (1) Source: U.S. Non-residential Construction average of PCA, IHS, Moody’s and ITR projections as of August 24, 2016; U.S. Municipal Spending from ITR Economics dated June 7, 2016.  Moderating, but still positive, non-residential construction growth expected in 2017 and 2018  Municipal spending expected to continue to grow over the forecast horizon September 23, 2016
  102. 102. Oshkosh Corporation Analyst Day 102 International Macroeconomic Outlook -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2010 2011 2012 2013 2014 2015 2016 2017 Euro Area Australia China Mexico Brazil Global GDP(1) (YoY % change)  Continued slowing of GDP growth rate in China  Slow economic growth environment for Europe, Australia and Mexico  China and Mexico present continued product adoption opportunities  Brazil continues to struggle with political and fiscal crises (1) Source: OECD - June 1, 2016 September 23, 2016
  103. 103. Updated Estimates for FY16 Additional estimates – Corporate expenses of $150 - $155 million – Tax rate of ~31% – CapEx of ~$100 million – Free Cash Flow(1) ~$400 million – Assumes share count of ~74.5 million – Sale of ~325 international M-ATVs in Q4 (~600 total units in FY16)  Revenues of $6.1 to $6.2 billion  Adjusted operating income of $360 million to $375 million(1)  Adjusted EPS of $2.85 to $3.00(1) (1) Non-GAAP results. See appendix for reconciliation to GAAP results. 103 Segment information Measure Access Equipment Defense Fire & Emergency Commercial Sales (billions) ~$2.95 ~$1.35 ~$0.95 ~$1.0 Operating Income Margin ~9.6%(1) ~8.5% ~6.75% ~6.75% Oshkosh Corporation Analyst Day September 23, 2016
  104. 104. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 FY16E Revenue Mid-point Access Defense Commercial F&E FY17E Revenue $6.15 ($Billions) $6.5 - $6.7 104 FY17 Revenue Estimates Annual Revenues  Defense Segment benefits from ramp of JLTV production and ~1,000 international M-ATVs  Modest Fire & Emergency and Commercial Segment sales growth  Access Equipment continues to be impacted by lower North American market replacement demand (1) (1) Mid-point of company FY16 Revenue guidance Oshkosh Corporation Analyst Day September 23, 2016
  105. 105. $0 $100 $200 $300 $400 $500 $600 $700 FY16E OI Mid-point Access Defense Commercial F&E Corporate FY17E OI $370 $390 - $430 ($Millions) 105 FY17 Operating Income Estimates  Defense Segment growth driven by international M-ATV shipments and JLTV production ramp  Higher operating income margins expected for Fire & Emergency and Defense Segments  Access Equipment Segment managing headwinds and cost structure in softer market Operating Income (1,2) Oshkosh Corporation Analyst Day September 23, 2016 (1) Rounded mid-point of company FY16 Operating Income guidance (2) Non-GAAP results. See appendix for reconciliation to GAAP results
  106. 106. $0.00 $1.00 $2.00 $3.00 $4.00 FY16E EPS Mid-point Access Equipment Defense Commercial F&E Corporate & Other FY17 EPS Range $2.90 EPS FY17 Earnings Per Share Estimates Oshkosh Corporation Analyst Day 106 (1) Rounded mid-point of company FY16 EPS guidance (2) Non-GAAP results. See appendix for reconciliation to GAAP results (3) Versus rounded mid-point of company FY16 EPS guidance  EPS growth(3) of ~10% at mid-point despite Access Equipment Segment sales decline  Defense Segment biggest driver of EPS growth (1,2) $3.00 - $3.40 September 23, 2016
  107. 107. $0 $100 $200 $300 $400 $500 $600 $700 FY16 FCF FY17 Net Income Non-Cash add back Working Capital Cap-Ex Other FY17 FCF FY18 FCF ~$400 $0 - $50 ($Millions) Free Cash Flow (FCF) Outlook 107  FY17 working capital use due to international M-ATV contract (drives strong cash generation from working capital in FY18)  Target ~100% free cash flow conversion over a cycle Free Cash Flow(1) (1) Non-GAAP results. See appendix for reconciliation to GAAP results. (2) Driven by earnings and cash generation from working capital. Oshkosh Corporation Analyst Day September 23, 2016
  108. 108. FY17 Early View Estimates 108  Revenues of $6.5 to $6.7 billion  Operating income of $390 million to $430 million  EPS of $3.00 to $3.40 Assumptions – No recession – Sale of ~1,000 International M-ATVs – Continued caution by construction equipment customers – Slow recovery of N.A. fire apparatus market continues – Modest refuse collection vehicle market growth – Working capital build to support international defense sales Additional estimates – Corporate expenses of $140 - $145 million – Tax rate of ~33% – CapEx of ~$100 million – Free Cash Flow(1) of $0 to $50 million – Assumes share count of ~74.5 million Segment information Measure Access Equipment Defense Fire & Emergency Commercial Sales (billions) $2.7 to $2.8 ~$1.85 ~$1.0 ~$1.0 Operating Income Margin 7.75% - 8.5% ~9.5% ~8.5% ~6.75% Oshkosh Corporation Analyst Day September 23, 2016 (1) Non-GAAP results. See appendix for reconciliation to GAAP results.
  109. 109. CAPITAL ALLOCATION
  110. 110. Oshkosh Corporation Analyst Day 110 Responsible Capital Allocation Strategy Long-term targeted capital structure Drives sales and EPS growth Reinvest in core business Invest in external growth (M&A) Return cash to shareholders Reduce debt Hold cash Debt to EBITDA target ~2.0X Opportunistic levers to drive additional shareholder value September 23, 2016
  111. 111. Strong Balance Sheet, Credit and Liquidity  Strong balance sheet(1) – Debt/Capital ~30% – Total debt: $855 million  Responsible leverage profile – Target: Debt/EBITDA ~2x  Strong interest coverage – Consistently > 7x  Manageable debt maturities Oshkosh Corporation Analyst Day 111 9/30/15 9/30/16E Debt/EBITDA(2) 1.8x 1.7x EBITDA(2)/Interest Exp. 9.3x 8.4x Debt/Total Capital 32.9% 30.0% Debt $939M $855M Liquidity $766M $963M $5 $20 $20 $315 $850 $250 $250 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Debt Maturities ($ Millions) Term Loan Revolver 2022 Notes 2025 Notes (1) Estimated at 09/30/16. (2) Non-GAAP results. See appendix for reconciliation to GAAP results. Rating Outlook S&P BB+ Stable Moody’s Ba2 Stable September 23, 2016
  112. 112. 70 75 80 85 90 95 09/30/12 09/30/13 09/30/14 9/30/2015 6/30/2016 # Outstanding Shares (Millions) $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 FY14 FY15 FY16 Annualized Dividend Payment Committed to Returning Capital to Shareholders 112 * Through 06/30/16 ~27% Increase ~20% Reduction  Repurchased shares at favorable prices; ~$900 million in share repurchases from FY13 - FY16 YTD*  Reinstated dividend in Q1 FY14; increased annually since reinstatement – Targeting regular annual dividend increases  Target returning ~50% of free cash flow to shareholders over the cycle Oshkosh Corporation Analyst Day September 23, 2016
  113. 113. M&A Strategy Summary  Historically a large part of Oshkosh strategy  Strong expected free cash flow provides opportunities  Industrial transaction valuations have remained high; OSK continues to be selective and patient  More likely to consider bolt-ons as opposed to transformational acquisitions  Characteristics of targets include the following: – Market leaders – Technology-oriented and complementary products to OSK businesses – Return profile (ROIC, EPS accretion) that delivers clear value creation over time – Strong synergy opportunities – Ideally less cyclical than existing businesses – Open to various geographies Oshkosh Corporation Analyst Day 113September 23, 2016
  114. 114. Oshkosh Corporation Focused on creating shareholder value Oshkosh Corporation Analyst Day 114September 23, 2016  Defense, Fire & Emergency and Commercial Segments’ performance offsetting near-term Access Equipment Segment headwinds  Expected strong free cash flow over the cycle  Responsible capital allocation strategy
  115. 115. Wilson Jones President and Chief Executive Officer Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016
  116. 116. 116 A different integrated global industrial MOVE – Evolving to deliver more value Positioned for long-term success Oshkosh Corporation Key Messages September 23, 2016Oshkosh Corporation Analyst Day
  117. 117. Appendix
  118. 118. September 23, 2016Oshkosh Corporation Analyst Day 118 Appendix: Non-GAAP to GAAP Reconciliation The table below presents a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures (in millions, except per share amounts): 2012 2015 Adjusted earnings per share - diluted (non-GAAP) 2.30$ 3.02$ Debt extinguishment costs, net of tax - (0.12) Pension and OPEB curtailment/settlement, net of tax (0.02) 0.03 Performance share valuation adjustment, net of tax (0.05) - Tender offer and proxy contest costs, net of tax (0.05) - Discrete tax benefits 0.49 - Restructuring charges, net of tax - (0.03) Earnings per share - diluted (GAAP) 2.67$ 2.90$ Low High Operating income As presented 360.0$ 375.0$ Restructuring charges (27.0) (27.0) GAAP 333.0$ 348.0$ Earnings per share - diluted As presented 2.85$ 3.00$ Restructuring charges, net of tax (0.23) (0.23) GAAP 2.62$ 2.77$ Fiscal 2016 Estimates Access Equipment operating income margin As presented ~9.6% Restructuring charges ~(0.9)% GAAP ~8.7% September 30, Fiscal 2016 Estimates
  119. 119. September 23, 2016Oshkosh Corporation Analyst Day 119 The table below presents a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures (in millions): Fiscal 2016 Estimates Low High Net cash flows provided by operating activities 500.0$ 100.0$ 150.0$ Additions to property, plant and equipment (100.0) (100.0) (100.0) Free cash flow 400.0$ -$ 50.0$ Fiscal 2017 Estimates Fiscal 2015 Low High Operating income (GAAP) 398.6$ 333.0$ 348.0$ Depreciation 64.9 73.0 73.0 Amortization of purchased intangibles 53.2 53.0 53.0 OPEB curtailment gain (3.4) - - Restructuring charges 2.9 27.0 27.0 EBITDA 516.2$ 486.0$ 501.0$ Fiscal 2016 Estimates Appendix: Non-GAAP to GAAP Reconciliation
  120. 120. September 23, 2016Oshkosh Corporation Analyst Day 120 Appendix: Commonly Used Acronyms ARFF Aircraft Rescue and Firefighting LVSR Logistic Vehicle System Replacement AWP Aerial Work Platform M-ATV MRAP All-Terrain Vehicle AMPS Aftermarket parts & service MRAP Mine Resistant Ambush Protected C4ISR Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance MSVS Medium Support Vehicle System (Canada) CAGR Compound Annual Growth Rate NOL Net Operating Loss CapEx Capital Expenditures NPD New Product Development DCS Direct Commercial Sales NRC National Rental Company DoD Department of Defense OCO Overseas Contingency Operations EMEA Europe, Middle East & Africa OH Overhead EMD Engineering & Manufacturing Development OI Operating Income EPS Diluted Earnings Per Share OOS Oshkosh Operating System FAST Act Fixing America’s Surface Transportation Act OPEB Other Post-Employment Benefits FHTV Family of Heavy Tactical Vehicles PLS Palletized Load System FMS Foreign Military Sales PUC Pierce Ultimate Configuration FMTV Family of Medium Tactical Vehicles R&D Research & Development GAAP U.S. Generally Accepted Accounting Principles RCV Refuse Collection Vehicle GAO Government Accountability Office RFP Request for Proposal HEMTT Heavy Expanded Mobility Tactical Truck ROW Rest of World HET Heavy Equipment Transporter SMP Standard Military Pattern (Canadian MSVS) HMMWV High Mobility Multi-Purpose Wheeled Vehicle TACOM Tank-automotive and Armaments Command IRC Independent Rental Company TDP Technical Data Package IT Information Technology TMH Telescopic Material Handler JLTV Joint Light Tactical Vehicle TWV Tactical Wheeled Vehicle JPO Joint Program Office UCA Undefinitized Contract Action JROC Joint Requirements Oversight Council UIK Underbody Improvement Kit (for M-ATV) JUONS Joint Urgent Operational Needs Statement UK United Kingdom L-ATV Light Combat Tactical All-Terrain Vehicle ZR Zero Radius
  121. 121. Oshkosh Corporation Analyst Day Executive Officer Oshkosh Corporation Analyst Day (NYSE:OSK) September 23, 2016

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