MOVING THE WORLD AT WORK
Oshkosh Corporation
First Quarter Fiscal 2014
January 28, 2014
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
MOVING THE WORLD AT WORK
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 outlook for 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 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 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; 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.
January 28, 2014 OSK First Quarter 2014 Earnings Call 2
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A Strong Start to FY14
EPS of $0.63 exceeded expectations
Disciplined execution
Favorable product mix
Improved performance in all non-
defense segments offset defense
earnings decline
MOVE drove higher operating income
margins
Exceeded share repurchase
program goal with $347 million
repurchased since November 2012
Paid first dividend under reinstated
program
Increasing FY14 EPS expectations
to a range of $3.40 to $3.65
Net
Sale
s
(bil
lio
ns
)
Ad
jus
ted
EP
S
OSK Fiscal Q1 Performance
* Non-GAAP results. See appendix for reconciliation to GAAP results.
January 28, 2014 OSK First Quarter 2014 Earnings Call 3
$1.53
$1.75
$0.63 $0.62
$0.00
$0.25
$0.50
$0.75
$1.00
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
FY14 FY13*Net Sales EPS
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Defense
Q1 results exceeded expectations
Focused on execution in period of lower
projected program volumes
International business development
remains a priority
Introducing new M-ATV variants
New programs moving at uneven pace
Important trials occurring this Spring
Submitted proposal and test vehicles
for Canadian MSVS SMP program
Pleased with progress of JLTV EMD
program
January 28, 2014 OSK First Quarter 2014 Earnings Call 4
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Access Equipment
Strong results driven by several factors
Higher volume
Continued improved operational
performance
Strong product mix impacted by Tier 4 timing
North American market remained strong
National rental company negotiations nearly
complete; orders shifting to Q2 & Q3
Largely improved global markets
Europe and Middle East stronger
Positive conditions in Latin America
Australia remained weak
Expect strong new product launches
at ConExpo
January 28, 2014 OSK First Quarter 2014 Earnings Call 5
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Fire & Emergency
Improved results with mixed
domestic markets
Municipal fire truck demand
improved
Expecting market to grow slowly
in 2014
Federal market remained weak due
to lower funding for equipment
Improvements in operations
underway, driven by MOVE
Expect greater benefit in 2H 2014
and throughout 2015
Plans for strong new product
launches at FDIC show this Spring
January 28, 2014 OSK First Quarter 2014 Earnings Call 6
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Commercial
U.S. housing starts growth trend
continued
Supports positive concrete mixer
market dynamics
U.S. refuse collection vehicle
market expected to grow slightly
in 2014
Remain focused on operational
improvements to deliver higher
margins
Expect greater benefit in 2H 2014
and throughout 2015
January 28, 2014 OSK First Quarter 2014 Earnings Call 7
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Consolidated Results
Sales impacted by:
‒ Significantly lower defense
volumes
+ Non-defense demand
Margins impacted by:
+ Strong access equipment results
Lower defense segment sales
Higher corporate spending
Repurchased 2.96 million
shares at aggregate cost of
$145 million
Comments
(Dollars in millions, except per share amounts)
First Quarter
Net Sales $1,530.2 $1,749.8
% Change (12.6)% (6.4)%
Adjusted
Operating Income $96.5 $96.6
% Change (0.1)% 18.1%
% Margin 6.3% 5.5%
Adjusted EPS $0.63 $0.62
% Change 1.6% 55.0%
2014 2013*
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
January 28, 2014 OSK First Quarter 2014 Earnings Call 8
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Updated Expectations for FY14
Additional expectations Corporate expenses flat with adjusted FY13*
Tax rate of ~32%
CapEx of ~$80 million
Free cash flow* ~$200 million
Assumes share count of ~85.5 million
Segment information
Measure Access
Equipment Defense
Fire &
Emergency Commercial
Sales
(billions) $3.35-$3.40 $1.75 - $1.80 $0.80 - $0.825 $0.85 - $0.90
Operating
Income Margin 14.25% - 14.5% 3.75% - 4.0% 4.0% - 4.5% 6.75% - 7.0%
• Revenues of $6.65 billion to $6.85 billion
• Operating income of $490 million to $520 million
• EPS of $3.40 to $3.65
Comments on FY14 Second Quarter
Expect improved year-over-year results in
non-defense segments
Expect significantly lower defense segment
sales and operating income
Prior year quarter had strong
M-ATV sales
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
January 28, 2014 OSK First Quarter 2014 Earnings Call 9
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For information
contact:
Patrick N. Davidson
Vice President, Investor Relations
(920) 966-5939
Jeff Watt
Director, Investor Relations
(920) 233-9406
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Net Sales $668.6 $581.3
% Change 15.0%* (7.4)%
Operating Income $90.3 $48.9
% Change 84.6% 273.5%
% Margin 13.5% 8.4%
First Quarter
(Dollars in millions)
2014 2013
Appendix: Access Equipment
Sales impacted by:
Higher North American AWP volume
(partially Tier 4 timing)
Higher European volume
Price realization
Lower U.S. military telehandler sales
Margins impacted by:
Product mix
Price realization
Positive impact of military contract
finalization
Backlog down 39% vs. prior year to
$468 million due to timing of orders
Strong January 2014
orders
Comments
January 28, 2014 OSK First Quarter 2014 Earnings Call 11
* 17.2% excluding military. Non-GAAP results.
See Appendix for reconciliation to GAAP results.
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Appendix: Defense
Sales impacted by:
Significantly lower volume
due to reduced U.S.
defense spending
Higher international M-ATV
sales
Margins impacted by:
Significantly lower volume
Improved operations
performance and product
mix
Backlog down 48%
vs. prior year to
$1.6 billion
Comments
Net Sales $481.3 $828.7
% Change (41.9)% (21.1)%
Operating Income $24.8 $60.9
% Change (59.3)% (34.1)%
% Margin 5.2% 7.4%
First Quarter
(Dollars in millions)
2014 2013
January 28, 2014 OSK First Quarter 2014 Earnings Call 12
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Net Sales $198.0 $182.1
% Change 8.7% 19.1%
Operating Income $6.9 $5.4
% Change 28.5% 185.2%
Margin 3.5% 2.9%
First Quarter
(Dollars in millions)
2014 2013
Appendix: Fire & Emergency
Sales impacted by:
+ Volume, primarily
international airport and
domestic fire truck
deliveries
Margins impacted by:
+ Prior year claim
Backlog up 6% vs. prior
year at $507 million
Comments
January 28, 2014 OSK First Quarter 2014 Earnings Call 13
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Appendix: Commercial
Sales impacted by:
+ Higher parts & service
sales
+ Higher concrete placement
volume
Margins impacted by:
+ Improved absorption on
higher sales
Backlog up 17% vs. prior
year to $171 million
Comments
Net Sales $192.6 $177.3
% Change 8.6% 3.3%
Operating Income $10.2 $8.0
% Change 27.7% 16.2%
% Margin 5.3% 4.5%
First Quarter
(Dollars in millions)
2014 2013
January 28, 2014 OSK First Quarter 2014 Earnings Call 14
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Appendix: Commonly Used Acronyms ARFF Aircraft Rescue and Firefighting MECV Modernized Expanded Capability Vehicle
AWP Aerial Work Platform MRAP Mine Resistant Ambush Protected
CNG Compressed Natural Gas MSVS Medium Support Vehicle System (Canada)
DoD Department of Defense MTT Medium Tactical Truck
EAME Europe, Africa & Middle East NPD New Product Development
EMD Engineering & Manufacturing Development OI Operating Income
EPS Diluted Earnings Per Share PLS Palletized Load System
FHTV Family of Heavy Tactical Vehicles PUC Pierce Ultimate Configuration
FMS Foreign Military Sales RCV Refuse Collection Vehicle
FMTV Family of Medium Tactical Vehicles RFP Request for Proposal
HEMTT Heavy Expanded Mobility Tactical Truck ROW Rest of World
HET Heavy Equipment Transporter SMP Standard Military Pattern (Canadian MSVS)
HEWATT HEMTT-Based Water Tender TACOM Tank-automotive and Armaments Command
HMMWV High Mobility Multi-Purpose Wheeled Vehicle TDP Technical Data Package
JLTV Joint Light Tactical Vehicle TFFT Tactical Fire Fighting Truck
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
M-ATV MRAP All-Terrain Vehicle
January 28, 2014 OSK First Quarter 2014 Earnings Call 15
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Appendix: Non-GAAP to GAAP
Reconciliation • The tables 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):
January 28, 2014 OSK First Quarter 2014 Earnings Call 16
2013 2012
Access equipment segment sales excluding military (Non-GAAP) 661.1$ 564.1$
Military telehandler sales - 17.2
Final pricing adjustment on multi-year military contract 7.5 -
Access equipment segment sales (GAAP) 668.6$ 581.3$
Non-GAAP operating expenses-Corporate (35.6)$ (26.4)$
Tender offer and proxy contest costs - (16.3)
GAAP operating expenses-Corporate (35.6)$ (42.7)$
Non-GAAP operating income 96.5$ 96.6$
Tender offer and proxy contest costs - (16.3)
GAAP operating income 96.5$ 80.3$
Non-GAAP income from continuing operations, net of tax 54.9$ 56.7$
Tender offer and proxy contest costs, net of tax - (10.4)
GAAP income from continuing operations, net of tax 54.9$ 46.3$
Non-GAAP earnings per share from continuing operations-diluted 0.63$ 0.62$
Tender offer and proxy contest costs, net of tax - (0.11)
GAAP earnings per share from continuing operations-diluted 0.63$ 0.51$
Fiscal Year Ended
September 30, 2013
Non-GAAP operating expenses-Corporate (147.6)$
Tender offer and proxy contest costs (16.3)
GAAP operating expenses-Corporate (163.9)$
Three Months Ended
December 31,
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Appendix: Non-GAAP to GAAP
Reconciliation • The tables 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):
January 28, 2014 OSK First Quarter 2014 Earnings Call 17
Fiscal 2014
Expectations
Net cash flows provided by operating activities 293.0$
Additions to property, plant and equipment (80.0)
Additions to equipment held for rental (13.0)
Proceeds from sale of equipment held for rental -
Free cash flow 200.0$