06-02-16 KeyBanc Discussion FINAL...Jun 02, 2016 · Strong RCV Fleet Replenishment and New Product Launches Investor Handout June 2, 2016 9 Fleet replenishment driving RCV market

MOVING THE WORLD AT WORK

Oshkosh Corporation (NYSE:OSK)

KeyBanc Industrial ConferenceJune 2, 2016


Forward-Looking Statements

2June 2, 2016Investor Handout

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 U.S. dollar and its impact on Company exports, translation of foreign sales and purchased materials; the expected level and timing of U.S. Department of Defense (“DoD”) and international defense customer procurement of products and services and funding or paymentsthereof; 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 payment 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 thatmay 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; risksrelated 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 April 28, 2016. All forward-looking statements speak only as of April 28, 2016. 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.


Why Oshkosh Corporation?


Defense , F&E and RCV+ Solid market outlook+ Strong backlogs+ JLTV ramp & Int’l M-ATVs+ Fire & Emergency and RCV share gains+ Improving OI margins

Access Equipment / Concrete Mixers+ Benefitting from construction growth- Cautious approach by customers- Soft replacement-driven access equipment

demand

OSK:A Different Integrated

Global Industrial

Expected FCF Provides Options+ Solid earnings+ Working capital reduction


Oshkosh Corporation –A Different Integrated Global Industrial

Technology leader supplying industry's top specialty vehicles& access equipment Serial innovator of game

changing new products Focused on delivering value to

customers and shareholders Leverage cross segment

expertise and resources

4

(1) As of May 25, 2016

Access Equipment Defense

Fire & Emergency

June 2, 2016Investor Handout

Fire & Emergency CommercialIncorporated 1917- Nearly 100 Yearsin Business

Market Cap (1) - $3.3 billion

OSK – NYSE ticker


MOVE Strategy Evolves to Drive Performance…

Focuses on drivers that create highest shareholder value Supports higher margin

targets through the cycle


…In FY16 and Beyond


DefenseReturning to Growth on a Strong Foundation

June 2, 2016Investor Handout 6

Improved defense segment outlook

JLTV ramp up gaining momentum− Production ramp up (FY17-19) quicker

than previous expectations

Positive multi-year domestic outlook− FY16 contract awards

− FY17 budget request

Continue to be active internationally − Awarded contract for more than 1,000

M-ATVs (finalizing funding and delivery schedule)

− Pursuing multiple other opportunities


Access EquipmentPositive Long-Term Outlook Despite Near Term Challenges


Mixed global market conditions continue

Positive sentiment at recent trade shows− BAUMA 2016− ARA Rental Show

Strong new product launches

Inventory reduction expected to continue in second half of FY16

Believe long-term trends are positive− Construction growth− Global product adoption− New applications for access

equipment


Fire & EmergencyImproving Execution Driving Market Leadership to New Heights


Continued modest market recovery Improved municipal spending Large city fleet replacement

Revolutionary Ascendant™ two-axle aerial ladder truck continues to gain momentum– Three new variants launched at FDIC− Contributing to share gains

Raising production rate in FY16 Leveraging improved operational

performance Increased production rate in February Additional increase planned in Q4


CommercialStrong RCV Fleet Replenishment and New Product Launches


Fleet replenishment driving RCV market growth– OSK products achieving share gains

New lighter weight Meridian front end loader RCV began shipping in 1H FY16− Market anticipation is high

Improved concrete mixer order rates in Q2; cautious tone remains

Believe long-term concrete mixer dynamics are favorable− Increased construction activity− Recently passed highway bill

(FAST Act)− Fleets continue to age


Responsible Capital AllocationStrong Free Cash Flow Provides Options


Reinvesting in core business remains preferred option

Return of capital balanced with continued investments– Provides options for the

business– Over $1.0 billion returned to

shareholders over the past four years

– Dividend increased annually since reinstatement in November 2013 201.8

403.3

200.4100.1

50.7

53.1

28.0

$0

$100

$200

$300

$400

$500

FY13 FY14 FY15 FY16YTD*Share Repurchases Dividends

($ m

illio

ns)

Cash Returned to Shareholders

* Data current as of March 31, 2016

Capital Allocation Priorities


Going Forward with Oshkosh - Expectations

MOVE strategy evolves– Market leadership with a focus

on delighting customers– Margin improvement– Technology drives game-changing

new products– Compete vigorously for business

around the world

Defense to drive growth

– JLTV award is historic, provides strong foundation and visibility into future

– Demand for international M-ATVs

Solid results in 2H FY16 in Access Equipment segment

Continued improvement in Fire & Emergency and Commercial segments



For informationcontact:

Patrick N. DavidsonVice President, Investor Relations(920) [email protected]

12

Jeffrey D. WattDirector, Investor Relations(920) [email protected]



Appendix: Commonly Used Acronyms


ARFF Aircraft Rescue and Firefighting MRAP Mine Resistant Ambush ProtectedAWP Aerial Work Platform MSVS Medium Support Vehicle System (Canada)CapEx Capital Expenditures NOL Net Operating LossCNG Compressed Natural Gas NPD New Product DevelopmentDGE Diesel Gallon Equivalent NRC National Rental CompanyDoD Department of Defense OCO Overseas Contingency OperationsEAME Europe, Africa & Middle East OH OverheadEMD Engineering & Manufacturing Development OI Operating IncomeEPS Diluted Earnings Per Share OOS Oshkosh Operating SystemFHTV Family of Heavy Tactical Vehicles OPEB Other Post-Employment BenefitsFMS Foreign Military Sales PLS Palletized Load SystemFMTV Family of Medium Tactical Vehicles PUC Pierce Ultimate ConfigurationGAAP U.S. Generally Accepted Accounting Principles R&D Research & DevelopmentGAO Government Accountability Office RCV Refuse Collection VehicleHEMTT Heavy Expanded Mobility Tactical Truck RFP Request for ProposalHET Heavy Equipment Transporter ROW Rest of WorldHMMWV High Mobility Multi-Purpose Wheeled Vehicle SMP Standard Military Pattern (Canadian MSVS)IRC Independent Rental Company TACOM Tank-automotive and Armaments CommandIT Information Technology TDP Technical Data PackageJLTV Joint Light Tactical Vehicle TPV Tactical Protector VehicleJPO Joint Program Office TWV Tactical Wheeled VehicleJROC Joint Requirements Oversight Council UCA Undefinitized Contract ActionJUONS Joint Urgent Operational Needs Statement UIK Underbody Improvement Kit (for M-ATV)L-ATV Light Combat Tactical All-Terrain Vehicle UK United KingdomLVSR Logistic Vehicle System Replacement ZR Zero Radius

M-ATV MRAP All-Terrain Vehicle


Appendix: Expectations for FY16*

Additional expectations Corporate expenses of $140 - $145 million Tax rate of ~ 30% CapEx of ~ $100 million Free Cash Flow** ~ $275 million Assumes share count of ~ 74.5 million

Segment information

Revenues of ~ $5.7 to $6.0 billion Operating income of $305 million to $345 million EPS of $2.30 to $2.70

* Information current as of April 28, 2016** Non-GAAP results. See Appendix for reconciliation to GAAP results.

14

Earnings weighted to second half Seasonality Cautious construction equipment customers Expect higher operating income margins compared

to first half in all segments, except defense segment Expect third quarter will be highest EPS quarter of

the year

Measure Access Equipment Defense Fire &

Emergency Commercial

Sales(billions) $2.8 to $2.95 $1.15 to $1.20 ~ $0.9 ~ $1.0

Operating Income Margin ~10.0% ~ 5.25% ~ 6.0% ~ 7.0%

June 2, 2016Investor Handout


Appendix: Consolidated Results

Sales impacted by: Lower access equipment volume Higher defense, fire &

emergency and commercial segment sales

EPS impacted by: Lower access equipment

segment results Higher corporate expenses Higher defense, fire &

emergency and commercial segment results

Discrete tax items Lower share count

Q2 Comments

(Dollars in millions, except per share amounts)

Second Quarter

Net Sales $1,524.3 $1,554.2% Change (1.9)% (7.4)%

Operating Income $91.4 $109.7% Change (16.7)% (8.1)%% Margin 6.0% 7.1%

Adjusted EPS $0.76 $0.81*% Change (6.2)% 1.3%

2016 2015

* Non-GAAP results for 2015. See Appendix for reconciliation to GAAP results.



Net Sales $754.3 $981.8% Change (23.2)% 13.4%

Operating Income $75.7 $136.9% Change (44.7)% 17.4%% Margin 10.0% 13.9%

Second Quarter

(Dollars in millions)

2016 2015

Appendix: Access Equipment

Sales impacted by: Lower North American volume,

primarily telehandlers

Operating income impacted by: Lower sales volume Challenging pricing Prior year favorable vendor

recovery Unfavorable absorption Lower spending on emissions

standards changes

Backlog up 2% vs. prior year to $665 million

Q2 Comments



Appendix: Defense

Sales impacted by: FHTV sales International M-ATV sales

Operating income impacted by: Higher sales volume Favorable product mix

Backlog up 193% vs. prior year to $1.68 billion*

Q2 Comments

Net Sales $297.0 $158.7% Change 87.1% (67.2)%

Operating Income / (Loss) $27.8 $(12.0)

% Change 333.0% (134.6)%% Margin 9.4% (7.5)%

Second Quarter


2016 2015


* Recently received international contract for more than 1,000 M-ATVs not included in defense segment March 31, 2016 backlog


Net Sales $240.4 $202.9% Change 18.5% 30.0%

Operating Income $14.9 $9.0% Change 66.0% 750.1%% Margin 6.2% 4.4%

Second Quarter


2016 2015

Appendix: Fire & Emergency

Sales impacted by: Higher fire apparatus volume

Operating income impacted by: Higher sales volume Improved operational efficiencies

Backlog up 26% vs. prior year to $903 million

Q2 Comments



Appendix: Commercial

Sales impacted by: Higher RCV volume

Operating income impacted by: Improved product mix Higher sales volume

Backlog down 1% vs. prior year to $289 million

Q2 Comments

Net Sales $236.7 $220.9% Change 7.1% 21.2%

Operating Income $17.2 $8.6% Change 99.0% 59.9%% Margin 7.3% 3.9%

Second Quarter


2016 2015




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):

Three Months EndedMarch 31, 2015

Adjusted earnings per share-diluted (non-GAAP) 0.81$ Debt extinguishment costs, net of tax (0.12)

Earnings per share-diluted (GAAP) 0.69$

Fiscal 2016Expectations

Net cash flows provided by operating activities 375.0$ Additions to property, plant and equipment (100.0) Free cash flow 275.0$

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06-02-16 KeyBanc Discussion FINAL...Jun 02, 2016 · Strong RCV Fleet Replenishment and New Product Launches Investor Handout June 2, 2016 9 Fleet replenishment driving RCV market