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MOVING THE WORLD AT WORK
Oshkosh Corporation (NYSE:OSK)2014 Annual Shareholders’ Meeting
February 4, 2014MOVE: Strategy and Business Transformation
MOVING THE WORLD AT WORK
Forward-Looking Statements
22014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
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, withoutlimitation, 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, areforward-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 rateof work at height machinery; the expected level and timing of DoD and international defense customers procurement of productsand 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 successfullymanage 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 thanCompany 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 January 28, 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.
MOVING THE WORLD AT WORK
February 4, 20142014 Oshkosh Corporation Annual Shareholders' Meeting 3
Charlie Szews - Chief Executive Officer2014 Annual Shareholders’ Meeting
February 4, 2014MOVE: The Strategy
MOVING THE WORLD AT WORK
Oshkosh Corporation Leading provider of specialty vehicles
Moving the World at Work
Nearly 100 years in business; incorporated in 1917
Four business segments
FY13 Revenue: $7.7 billion
Market Capitalization (1): $4.5 billion
December 2013 Net Debt (2): $380 million
15 year TSR(3): ~1,200%1 year TSR(3): ~80%
(1) As of January 31, 2014(2) Net debt is total debt less cash(3) TSR is Total Shareholder Return. Source: ThomsonONE. From September 30, 1998 to September 30, 2013 and
September 28, 2012 to September 30, 2013, respectively
Access Equipment Defense
Fire & Emergency Commercial
42014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
MOVING THE WORLD AT WORK
Transforming – More Diverse, Global Industrial Company
FY15E Sales (1)
FY11 Sales
Defense Non-Defense
Non-Defense Sales Become Significant Majority of Revenue by FY15
FY13 Sales
(1) Based on Company estimates as of September 2012 Analyst Day
52014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
MOVING THE WORLD AT WORK
Strong Performance in FY13…
(1) Non-GAAP results. See Appendix: Non-GAAP to GAAP Reconciliation(2) Variance calculated from high end of range.
FY13 Analyst FY13 Measure Day Estimates Actual %Variance(2)
Revenue $7.5 - $7.8B $7.7B (1.7%) Solid non-defense growth largely offset anticipated defense decline
Adjusted Operating Income(1) $380 - $420M $535M 27.4% MOVE initiatives provide strong foundationfor growth to FY15 objectives
Adjusted EPS(1) $2.35 - $2.60 $3.74 43.8% Strong growth despite lower defense revenue
Free Cash Flow(1) $75 - $100M $386M 286.0%Consistent generator of strong FCF
62014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
…Driving Toward FY15 Targets
MOVING THE WORLD AT WORK
Strong Free Cash Flow(1)…
7
Fiscal Year(Cumulative)
(Millions)
2014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
Free cash flow consistently approximates net income or higher
Relatively low annual capital spending requirements:$50 - $100 million
Result: significant cash flow available to return cash to shareholders or invest in the business/acquisitions
(1) Free cash flow is cash from operations less net capital expenditures
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2006 2007 2008 2009 2010 2011 2012 2013
MOVING THE WORLD AT WORK
…Responsible Capital Allocation
Completed $300M share repurchase plan Reinstated dividend – annualized $0.60/share Working capital initiatives helping drive Free Cash Flow
8
Return capital to shareholders
Re-invest in core business
Invest in external growth
opportunities
Hold cash
Reduce debt
Long-term targeted capital
structure
2014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
MOVING THE WORLD AT WORK
FY15 Targets
FY13 MOVE ScorecardOn Track to Achieve FY15 Targets
(1) Compared with FY12 expectations as of September 2012 Analyst Day.(2) Net of investment costs and compared with consolidated FY11 operating income margins.
Initiative
9
FY13Result
Bottom Line – Results for Shareholders
FY15Estimate
2014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
MOVING THE WORLD AT WORK
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
Sal
es(b
illio
ns)
Adjusted EPS
OSK Fiscal Q1 Performance
* Non-GAAP results. See appendix for reconciliation to GAAP results.
February 4, 20142014 Oshkosh Corporation Annual Shareholders' Meeting 10
$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
MOVING THE WORLD AT WORK
February 4, 20142014 Oshkosh Corporation Annual Shareholders' Meeting 11
Oshkosh Business Transformation –To Serve and Delight Customers
MOVING THE WORLD AT WORK
Powering Our Transformation –The Oshkosh Operating System Customer-centric application
of lean principles─ Develops talent to deliver value
for customers
February 4, 20142014 Oshkosh Corporation Annual Shareholders' Meeting 12
Improves processes needed todeliver key elements of MOVE
Supports drive to improve cash flow
Implementation gaining momentum
Company-wide foundation for building shareholder value
MOVING THE WORLD AT WORK
Customer Supporting Systems
13
Leaders Cascade Training
Driving Our Customer-Centric Culture:OOS Foundational Training
Customer Satisfaction
Launched September 2013
Launched December 2013
Customer First
Launched November 2012
2014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
MOVING THE WORLD AT WORK
Continue to Advance OOS Culture
142014 Oshkosh Corporation Annual Shareholders' Meeting
The OOS Journey
Phase Zero:Exploration
Phase One:Building the foundation
Phase Two:Expanding with tools and deeper thinking
Phase Three:Integration and reinforcement
Phase Four:Building the momentum
February 4, 2014
MOVING THE WORLD AT WORK
Transforming Operations –Continuous Improvement Events
152014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
Using Problem Solving Tools to Improve Paint Quality
Developing Customer-Centric Key Performance Indicators
Using Process Mapping to Reduce Lead Time
Improving Station Layout to Reduce Non-Value Added Motion
MOVING THE WORLD AT WORK
16
Transforming Operations –Quality Initiatives
2014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
MOVING THE WORLD AT WORK
17
Transforming Operations –Customer First, Customer Focused
2014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
MOVING THE WORLD AT WORK
Sustainable Business PracticesContinue the Transformation
18
Emphasis on Green Initiatives
Corporate Wide Environmental KPI’s
Strong Community Outreach Programs
External Recognition
2014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
MOVING THE WORLD AT WORK
19
Transforming Business Culture –Oshkosh Excellence Awards
2014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
Delighting Customers
Human Development
Innovative Excellence
Environmental Responsibility
MOVING THE WORLD AT WORK
Our Commitment to Shareholders Executing MOVE to drive shareholder value Impressive FY13 results Benefiting from improving housing starts; expect follow on growth
in non-residential construction and municipal recovery MOVE initiatives driving margin expansion On track to achieve FY15 EPS of $4.00 to $4.50
Oshkosh Operating System developing processes and talent to sustain superior growth for shareholders
20
Transforming to Sustain Long-Term Value Creation for Shareholders
2014 Oshkosh Corporation Annual Shareholders' Meeting February 4, 2014
MOVING THE WORLD AT WORK
Oshkosh Corporation (NYSE:OSK)2014 Annual Shareholders’ Meeting
February 4, 2014MOVE: Strategy and Business Transformation
MOVING THE WORLD AT WORK
Appendix: Non-GAAP to GAAP Reconciliation
22
The table below presents a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures (in millions, except per share amounts):
Fiscal Year EndedSeptember 30,
2013
Non-GAAP operating income 534.8$ Tender offer and proxy contest costs (16.3) Impairment charge (9.0) Union contract ratification costs (3.8) GAAP operating income 505.7$
Non-GAAP earnings per share from continuing operations-diluted 3.74$ Tender offer and proxy contest costs, net of tax (0.12) Impairment charge, net of tax (0.06) Union contract ratification costs, net of tax (0.03) GAAP earnings per share from continuing operations-diluted 3.53$
Net cash flows provided by operating activities 438.0$ Additions to property, plant and equipment (46.0) Additions to equipment held for rental (13.9) Proceeds from sale of property, plant and equipment 0.1 Proceeds from sale of equipment held for rental 7.5 Free cash flow 385.7$
February 4, 20142014 Oshkosh Corporation Annual Shareholders' Meeting
MOVING THE WORLD AT WORK
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:
February 4, 20142014 Oshkosh Corporation Annual Shareholders' Meeting 23
2013 2012
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$
Three Months EndedDecember 31,