Jefferies 2014 Global Industrials Conference slides

MOVING THE WORLD AT WORK
Oshkosh Corporation (NYSE:OSK)
Jefferies 2014 Global Industrials Conference
Investor Handout
August 2014

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 pace of U.S. and
European economic recoveries; the strength of emerging market growth and projected adoption rate 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; 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 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; the impact of cyber security risk 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 July 29, 2014. 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.
Oshkosh Corporation Investor Handout August 2014 2

Oshkosh Corporation
 Leading global provider of specialty
vehicles
- Moving the World at Work
 Nearly 100 years in business;
incorporated in 1917
 Four business segments
 TTM Revenue: $6.9 billion (1)
 Market Capitalization (2): $3.9 billion
 Responsible capital allocation
(1) As of June 30, 2014
(2) As of July 31, 2014
Access Equipment
Defense
Defense
Fire & Emergency
Commercial
Commercial

Oshkosh Corporation Profile – FY14
Revenue by Segment
First Nine Months FY14
50%
10%
12%
Access Equipment Defense Fire & Emergency Commercial
Compared with FY13 through Nine Months:
 Non-Defense Segment Revenues Increased 8.8%
 Non-Defense Segment Operating Income Increased 25.0%
Source: Oshkosh Corporation 10-Q Filing dated July 29, 2014
28%
Revenue by Geography
First Nine Months FY14
77%
10% 5%
8%
United States Other NA EAME Rest of World

Strong Free Cash Flow(1)
2006 2007 2008 2009 2010 2011 2012 2013
Fiscal Year
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$-
Cumulative Free Cash Flow (millions)
(1) Free cash flow is cash from operations less net capital expenditures
 Targeting free cash
flow to approximate net
income or higher over
the course of a cycle
 Historically relatively
low annual capital
spending requirements:
$50 - $100 million
 Significant cash flow
available to execute
capital allocation
strategy

Responsible Capital Allocation Strategy
Re-invest in core
business
 Reinstated $0.15 quarterly cash dividend
 Repurchased 9.8M OSK shares for $368M; July 2012 – June 30, 2014
 Refinanced $250M in Sr. Notes, now due March 2022
─ Interest rate reduced from 8.25% to 5.375%
6
Return capital to
shareholders
Invest in external
growth
opportunities
Hold cash
Reduce debt
Long-term
targeted capital
structure
Oshkosh Corporation Investor Handout August 2014

Transforming Oshkosh with
MOVE

Transforming – More Diverse,
Global Industrial Company
Non-Defense Sales Become Majority of Revenue by FY15
FY15E Sales (1)
FY11 Sales
Defense Non-Defense
FY13 Sales
(1) Based on Company estimates as of September 2012 Analyst Day

MOVE – The Right Strategy
 Focuses on drivers that create highest shareholder value
 Expected to drive higher incremental margins across non-Defense
businesses over cycle
FY15 EPS Target
$4.00 to $4.50

Powering Our Transformation –
The Oshkosh Operating System
 Customer-centric application
of lean principles
─ Develops talent to deliver value
for customers
 Improves processes needed to
deliver key elements of MOVE
 Supports drive to improve
cash flow
 Implementation gaining
momentum
 Company-wide foundation for
building shareholder value

Oshkosh Segment Overview

Access Equipment
 Market leader with innovative product
offerings
- Aerial work platforms
- Telehandlers
 Innovation focus evident at ConExpo
trade show, March 2014
 185’ Ultra Boom AWP
 Refreshed North America’s top telehandler
brand, SkyTrak®
 Industry’s first hybrid diesel-electric boom lift
 Introduced global telehandler - RS series
 Strong execution driven by MOVE
strategy
 Positive global trends

North American Metrics Remain Solid
Refreshing Fleets, Increasing Penetration
Based on International Rental News/Dan Kaplan sample of medium to large NA
rental equipment companies (United Rentals, RSC, H&E, HERC).
Residential and Non-Residential Spending
(Y-O-Y % Change)
20%
10%
0%
‐10%
‐20%
‐30%
‐40%
2008 2009 2010 2011 2012 2013 2014E 2015E
Residential Non‐Residential
N.A. Rental Equipment Access - Fleet Age
(AWP & TMH)
N.A. Rental Equipment Company Fleet Utilization
Recent Used Equipment Value Trends
(OLV)
Source: Global Insight Estimates, June 2014
(% Change) (% Time Utilization)
OLV(% of Cost)
60
55
50
45
Source: Rouse Rental Report. Calendar year-end data for 2008-13, 2014YTD through June
(Age in Months)
13
Source: Rouse Asset Services, July 2014
Note: Rouse rebased the Rouse Value IndexTM in January 2014
45.0
40.0
35.0
30.0
25.0
AWP - Articulating Boom AWP - Scissor Lifts
AWP - Telescopic Boom Forklifts Hi-Reach
40
2008 2009 2010 2011 2012 2013 2014YTD

Defense Team Driving Hard Through Downturn
 Leading supplier to U.S. DoD for medium and
heavy payload TWVs
 Managing programs with lower expected funding
 Working on multiple international opportunities
- Middle East: M-ATV, Medium & Heavy
TWV platforms
- Canada: MSVS SMP
DoD Funding Drives Lower Defense Outlook Through FY15
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
$4.0
$3.0
$1.725-$1.75 $1.5
Target (1)
$0.8
Baseline (1)
FY12 FY13 FY14E FY15E
Sales in Billions
(1) FY15 estimates as of September 2012 Analyst Day
(*) Non-GAAP results. See Appendix: Non-GAAP to GAAP Reconciliation
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
6.0%
7.4%
~4.75%*
Baseline
~2.0% (1)
FY12 FY13 FY14E FY15E
Operating Income Margin

Competing in Light TWV Market
Joint Light Tactical Vehicle Program
 JLTV represents opportunity to recreate
the business
- One of three EMD phase suppliers
- Strong congressional and pentagon
program support
- Large unit potential
o Initial contract ~17,000
o Total U.S. requirements of ~55,000
o Attractive global customer prospects
- Leverages Oshkosh strengths
- Contract award scheduled for
summer 2015

Fire & Emergency
 Industry-leading brands
- Pierce firetrucks
- Oshkosh ARFF and snow removal
vehicles
- Frontline broadcast vehicles
 Extensive new product launches at
FDIC show in April 2014
 Slowly recovering U.S. municipal
demand
 Lower funding limiting federal
demand
 Investing in operations to achieve
MOVE targets
 Expect greater benefit in 4Q FY14
and throughout FY15

Domestic Fire Market Drivers Recovering
• Municipal fire truck orders improving with tax receipts
14%
12%
10%
8%
6%
4%
2%
0%
‐2%
‐4%
‐6%
‐8%
Year‐Over‐Year Percent Change In Housing Prices vs. Local Property Taxes
Recession
Housing Price Index
Local Property Taxes
Source: Rockefeller Institute analysis of U.S. Census Bureau Quarterly Summary of State and Local Government Tax Revenue and Federal
Housing Finance Agency, House Price Indexes data (All Transactions).
HOUSING PRICES & LOCAL PROPERTY TAXES
(4‐quarter moving average)

Commercial
 Strong concrete mixer and
RCV brands
 Positive outlook for U.S.
concrete mixer market
 Housing trend generally
positive
 Strong ConExpo trade show
 Expect flat U.S. RCV
market in 2014
 Remain focused on driving
improved segment results
 Expect greater benefit in
Q4 FY14 and into FY15

Construction: Substantial Mixer
Opportunities with Modest Recovery
Housing Starts and
Mixer Shipments (1959-2013)
2.5
2.0
1.5
1.0
0.5
0.0
Housing Starts (Units in Millions)
Housing Starts Mixer Units Shipped
2012 2013 2014E 2015E
19
12,000
10,000
8,000
6,000
4,000
2,000
0
Mixer units
Sources: Housing Starts - U.S. Census Bureau. Mixer Shipments - Truck Mixer Manufacturers Bureau; U.S. and Canada.
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
Moody’s – June ’14
Global Insight – June ’14
PCA – April ’14
Housing Starts (units in millions)
U.S. Housing Starts Forecast
Moodys Portland Cement Association
Global Insight Average Analyst Estimate

Moving Forward in FY14

Q3 Performance Highlights
 Adjusted EPS* of $1.23
 Improved access equipment
and commercial performance
offset by expected lower
defense results
 Access equipment posted all
time records for revenue and
operating income
 Strong investments in NPD
 Announced quarterly dividend
of $0.15 per share
Net Sales
(billions)
Adjusted EPS*
OSK Fiscal Q3 Performance
$1.9
$2.2
$1.23
$1.67
$2.00
$1.75
$1.50
$1.25
$1.00
$0.75
$0.50
$0.25
$0.00
$2.5
$2.0
$1.5
$1.0
$0.5
$0.0
FY14 FY13
Net Sales Adjusted EPS*
* Non-GAAP results. See Appendix for reconciliation to GAAP results.

Expectations for FY14
• Revenues of $6.7 billion to $6.75 billion
• Adjusted operating income* of $490 million to $505 million
• Adjusted EPS* of $3.40 to $3.55
Segment information
Equipment Defense Fire &
Emergency Commercial
Measure Access
Sales
(billions) $3.40 - $3.425 $1.725 - $1.75 ~$0.775 ~$0.85
Operating
Income Margin ~14.6% ~4.75%* ~3.5% ~6.0%
Additional expectations
 Corporate expenses ~$10 million higher than
adjusted FY13*
 Tax rate* of ~32.0%
 CapEx of ~$100 million
 Free cash flow* ~$100 million
 Assumes share count of ~86.0 million
* Non-GAAP results. See Appendix for reconciliation to GAAP results.

MOVE Investments Providing Returns
 Recovering demand for
non-defense businesses
in North America
- Europe looking stronger
 Additional cost take-out
- Focus on product, process
and overhead costs
- Dedicated teams leveraging
the Oshkosh Operating
System
 Innovations improving
customers’ performance
at work
 Driving to grow
international sales

Our Commitment to Shareholders
 Continue executing MOVE to drive shareholder value
- Finish FY14 with strength
- Impacted by housing starts; expect follow on growth in non-residential
construction and municipal recovery
- MOVE initiatives driving margin expansion
- Targeting FY15 EPS of $4.00 to $4.50
 Oshkosh Operating System developing
processes and talent
Transforming to Sustain Long-Term Value Creation for Shareholders
24

For information
contact:
Patrick N. Davidson
Vice President, Investor Relations
(920) 966-5939
pdavidson@oshkoshcorp.com
Jeffrey D. Watt
Director, Investor Relations
(920) 233-9406
jwatt@oshkoshcorp.com

Appendix: Commonly Used Acronyms
26
ARFF Aircraft Rescue and Firefighting M-ATV MRAP All-Terrain Vehicle
AWP Aerial Work Platform MECV Modernized Expanded Capability Vehicle
CapEx Capital Expenditures MRAP Mine Resistant Ambush Protected
CNG Compressed Natural Gas MSVS Medium Support Vehicle System (Canada)
DGE Diesel Gallon Equivalent NOL Net Operating Loss
DoD Department of Defense NPD New Product Development
EAME Europe, Africa & Middle East NRC National Rental Company
EMD Engineering & Manufacturing Development OI Operating Income
EPS Diluted Earnings Per Share OOS Oshkosh Operating System
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
HEMTT Heavy Expanded Mobility Tactical Truck RCV Refuse Collection Vehicle
HET Heavy Equipment Transporter RFP Request for Proposal
HMMWV High Mobility Multi-Purpose Wheeled Vehicle ROW Rest of World
IRC Independent Rental Company SMP Standard Military Pattern (Canadian MSVS)
IT Information Technology TACOM Tank-automotive and Armaments Command
JLTV Joint Light Tactical Vehicle TDP Technical Data Package
JPO Joint Program Office TPV Tactical Protector Vehicle
JROC Joint Requirements Oversight Council TWV Tactical Wheeled Vehicle
JUONS Joint Urgent Operational Needs Statement UCA Undefinitized Contract Action
L-ATV Light Combat Tactical All-Terrain Vehicle UIK Underbody Improvement Kit (for M-ATV)
LVSR Logistic Vehicle System Replacement

Appendix:
Non-GAAP to GAAP Reconciliation
• The tables below present a reconciliation of the Company’s presented non-GAAP measures to the most directly
comparable GAAP measures:
Adjusted earnings per share from continuing
Three Months Ended
June 30,
operations-diluted (non-GAAP) $ 1.23 $ 1.67
Contract pricing adjustment for OPEB
costs, net of tax (0.08) -
OPEB curtailment gain, net of tax 0.07 -
Earnings per share from continuing
2014 2013

Appendix:
comparable GAAP measures (in millions, except per share amounts):
Fiscal 2014 Expectations
Adjusted operating income (non-GAAP) $ 4 90.0 $ 505.0
Contract pricing adjustment for OPEB costs (10.7) (10.7)
OPEB curtailment gain 9.7 9 .7
Pension curtailment loss (4.1) ( 4.1)
Operating income (GAAP) $ 4 84.9 $ 499.9
Adjusted earnings per share from continuing
Reduction of valuation allowance on net operating loss carryforward 0.14 0.14
Contract pricing adjustment for OPEB costs, net of tax (0.08) (0.08)
OPEB curtailment gain, net of tax 0.07 0.07
Pension curtailment loss, net of tax (0.03) (0.03)
Debt extinguishment costs, net of tax (0.08) (0.08)
Earnings per share from continuing operations-diluted (GAAP) $ 3.42 $ 3.57
Fiscal Year Ended
September 30, 2013
Adjusted operating expenses-Corporate (non-GAAP) $ (147.6)
Tender offer and proxy contest costs (16.3)
Operating expenses-Corporate (GAAP) $ (163.9)
Low High

Appendix:
comparable GAAP measures (in millions):
Net cash flows provided by operating activities $ 2 13.0
Additions to property, plant and equipment (100.0)
Additions to equipment held for rental (19.0)
Proceeds from sale of equipment held for rental 6.0
Free cash flow $ 1 00.0
Effective tax rate (non-GAAP) 32.0%
Reduction of valuation allowance on net
operating loss carryforward (3.0)%
Effective tax rate (GAAP) 29.0%
Defense adjusted operating income margin (non-GAAP) 4.75%
Contract pricing adjustment for OPEB costs (0.62)%
OPEB curtailment gain 0.56%
Pension curtailment loss (0.24)%
Defense operating income margin (GAAP) 4.45%
Fiscal 2014
Expectations

Jefferies 2014 Global Industrials Conference slides

Recommended

Recommended

More Related Content

What's hot

What's hot (8)

Viewers also liked

Viewers also liked (20)

Similar to Jefferies 2014 Global Industrials Conference slides

Similar to Jefferies 2014 Global Industrials Conference slides (20)

More from Oshkosh_Investors

More from Oshkosh_Investors (9)

Jefferies 2014 Global Industrials Conference slides