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Oshkosh Oshkosh CorporationCorporation
Investor PresentationInvestor Presentation
September 2013September 2013
OSK Investor Slides September 2013
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, withoutlimitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs,, g g p y p , gy, g , p j , ,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 state e ts ese acto s c ude t e cyc ca atu e o t e Co pa y s access equ p e t, co e c a a d e & e e ge cymarkets, especially in the current environment where there are conflicting signs regarding the global economic outlook and the ability of the U.S. government to resolve budgetary and debt issues; the expected level and timing of the DoD 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 increase prices to raise margins or offset higher input costs; increasing commodityand other raw material costs particularly in a sustained economic recovery; risks related to facilities consolidation andand 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 weakness, 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 delaysarising 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 andfluctuations 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 itsstrategic 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 30, 2013.
All forward-looking statements speak only as of July 30, 2013. 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
OSK Investor Slides September 2013
such information until the Company s next quarterly earnings conference call, if at all.
2
Oshkosh Corporation – (NYSE: OSK)
Q3 YTD Performance FY13 FY12 % Change Revenue $5 94B $6 09B (2 5%)Revenue $5.94B $6.09B (2.5%)
Solid non-defense growth largely offset anticipated defense decline
Adjusted EPS (1) $3.23 $1.66 94.6% St th d it l d fStrong growth despite lower defense revenue
Free Cash Flow (1) $216M $38M 468.0%Consistent generator of strong FCF
• Four Strong Segments
• Employees (2): ~12,000• Market Cap (2): $3.9B
• Incorporated in 1917
OSK Investor Slides September 2013
(1) Non-GAAP results. See Appendix for reconciliation to GAAP results.(2) As of August 30, 2013.
3
MOVE – The Right StrategySummary of Primary Opportunities – FY12 to FY15
FY15 TargetsFY15 TargetsInitiativeInitiative
• Focuses on drivers that create highest shareholder valueg
• Expected to drive higher incremental margins across non-Defense businesses over cycle
OSK Investor Slides September 2013
(1) Expected benefits of market recovery captured in financial estimates vs. September 2012 Analyst Day estimate of FY12. Does notinclude benefits of other MOVE initiatives.
(2) Net of investment costs and compared with consolidated FY11 operating income margins.(3) Compared with FY12.
4
Poised to Deliver ResultsExpect to overcome effects of defense downturn
Industry Leading Brands Industry Leading Brands (1)(1)
Access Equipment #1 Global
# GFire Apparatus #1 Global
Airport Products #1 Global
Defense TWV (2) #1 Global
Concrete Mixers #1 Americas
Refuse Collection #1 Americas(1) Based on Company estimates.
• MOVE strategy expected to deliver higher margins throughout cycle• Strong Q3 FY13 revenue and income performance
(2) Oshkosh Defense is the leading supplier of heavy and medium tactical wheeled vehicles for the U.S. Armed Services.
g p• Oshkosh processes and team support execution of MOVE
– Powered by Oshkosh Operating System
OSK Investor Slides September 2013
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
5
The Access Equipment Advantageg
Global Leader in Access Equipment
Global Market Presence
Industry Leading
Innovation
Flexible Manufacturing
and Supply Innovation
Superior P d t R
Full Spectrum Parts Service
pp yChain
Product RangeParts, Service, and Support
OSK Investor Slides September 2013
JLG is positioned for sustained industry leading performance
6
North American Rental Companies Refreshing Their Fleets, Increasing Market Penetration
Total Construction Spending(Y-O-Y % Change)
NA Rental Equipment Access - Fleet Age(AWP and TMH)
60
10
20
(% C
hang
e)
45
50
55
(Age
in M
onth
s)
‐10
0
10
C NA Rental Equipment Company CapEx
Source: IHS Global data/projections, August, 2013 Source: Rouse Rental Report. Calendar year-end data for 2009-12
402009 2010 2011 2012
Age (months)
‐202006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E
United States Canada
NA Rental Equipment Company Fleet Utilization NA Rental Equipment Company CapEx (Y-O-Y % Change)
zatio
n)
e) 6090
120
150
65
70
75
(% T
ime
Util
iz
(% C
hang
‐90
‐60
‐30
0
30
2004 2005 2006 2007 2008 2009 2010 2011 2012
50
55
60
Q'10Q'
10Q'
10Q'
10Q'
11Q'
11Q'
11Q'
11Q'
12Q'
12Q'
12Q'
12Q'
13Q'
13
OSK Investor Slides September 2013
Based on International Rental News/Dan Kaplan sample of medium to large NA rental equipment companies (United Rental, RSC, H&E, HERC).
Based on International Rental News/Dan Kaplan sample of medium to large NA rental equipment companies (United Rental, RSC, HERC, Ameco, Neff).
2004 2005 2006 2007 2008 2009 2010 2011 2012
CapEx
7
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Ind. Avg.
Positive North America Leading Indicators
AWP – Articulating Boom 51.7
Average Age(in months)
Recent Used Equipment Value Trends(OLV)
39.7%
43.2%
35.0
40.0
45.0
OLV
(% o
f Cos
t)
AWP – Scissor Lifts 54.8
Jul
Aug
Sep Oct
Nov
Dec Jan
Feb
Mar Apr
May
June JulyO
38.4%
44.0%
35.0
40.0
45.0
Jul
ug ep Oct ov ec an eb ar Apr ay ne ulyO
LV (%
of C
ost)
S R A t S i A t 2013
AWP – Telescopic Boom 55.3
J Au
Se O No
De Ja Fe M A Ma
Jun
Ju
30.9%31.7%
30.0
32.5
35.0
Jul
Aug
Sep Oct
Nov
Dec Jan
Feb
Mar
Apr
May
June JulyO
LV (%
of C
ost)
Source: Rouse Asset Services, August 2013.
U.S. Housing Starts
Seasonally Adjusted Rate 2013 2012 Change
July 896 000 741 000 +20 9%July 896,000 741,000 +20.9%Source: U.S. Census Bureau, August 2013.
OSK Investor Slides September 20138
The Oshkosh Defense Advantageg
Defense Engineering & Product
Development
Service, Lifecycle
Sustainment
Scalable Manufacturing & Operations
Vehicle Fleet Modernization
Vertical Integration of Specialized
Components
Defense Program
Management
D f i d t ti th t l th
OSK Investor Slides September 2013
Defense industry expertise that leverages thefull capabilities of Oshkosh Corporation
9
L-ATVThe Oshkosh JLTV Solution
• The future of light tactical vehicles• JLTV EMD contract award
– 22 prototypes for evaluation– Reliability, Availability and
Maintainability (RAM)testing begins late 2013testing begins late 2013
– Decision expected early 2015• Oshkosh JLTV solution
– Oshkosh TAK-4i intelligent independent suspension system
– Latest automotive technologiesAd anced cre protection s stem– Advanced crew protection system
• Low rate initial production expected in 2016 for contract winner
OSK Investor Slides September 201310
The Fire & Emergency Advantageg
Innovation#1 B d o at oLeader#1 Brands
PremierDistribution and Service
Unrivaled Product
Performance
OSK Investor Slides September 2013
Leading global provider of specialty vehicles that serve, protect and save lives
11
Domestic Fire Market Drivers Stabilizing g• Housing prices recovering, property taxes growing
Recent HeadlinesHOUSING PRICES & LOCAL PROPERTY TAXES
New Home Sales Hit Five-Year High, Prices Soar- Reuters, July 24, 2013
Construction Spending in U.S. Rises, Led By Residential Projects- Bloomberg July 1 2013Bloomberg, July 1, 2013
Apocalypse, Not Now, for Municipal Bonds
B ’ A il 23 2013- Barron’s, April 23, 2013
OSK Investor Slides September 201312
The CommercialAdvantage g
Broadest Product Line
Best in Class Aftermarket Service and
Support Refuse collection vehicle product line
Direct Distribution,
Customer Intimacy
Innovation and New Product Development
Scalable, Flexible
Manufacturing & O ti
Access to Technology, Alternative
Fuels
Integrated factory
& OperationsFuels Leadership
OSK Investor Slides September 2013
Alternative fuel technology
Street Smart, Street Tough13
Construction: SubstantialOpportunity with Modest Recovery
Housing Starts and Mixer Shipments (1959-2012) U.S. Housing Starts Forecast
8,000
10,000
12,000
2,000
2,500
M000s
)
1 6
1.8
2.0
2.2
2.4
in m
illio
ns)
4,000
6,000
500
1,000
1,500
Mixer U
nits Shippe
Hou
sing
Sta
rts
(0
0.8
1.0
1.2
1.4
1.6
sing
Sta
rts
(uni
ts
0
2,000
0
500
ed Housing Starts Mixer Units Shipped
0.62012 2013E 2014E 2015E 2016EH
ous
Moodys Portland Cement Association
Global Insight Average Analyst Estimate
• U.S. housing starts assumed by OSK**: 0.8 million in FY13; 1.2 million in FY14; and 1.4 million in FY15
• July 2013 U S housing starts* at 896 000
OSK Investor Slides September 2013
July 2013 U.S. housing starts at 896,000
14
Sources: Housing Starts - U.S. Census Bureau. Mixer Shipments - Truck Mixer Manufacturers Bureau; U.S. and Canada.
MOVE at Work in Q3*
• Q3 EPS of $1.67– Nearly double Q3 FY12
OSK Fiscal Q3 Performancey
– Access equipment and defense segments led the way
• MOVE initiatives gaining les
ns) E
$2,204 $2,160 $1.67
$1.25
$1.50
$1.75
$2.00
$1 500
$2,000
$2,500
MOVE initiatives gaining momentum
• Benefited from positive market conditions in North America
Net
Sa
(mill
ion
EPS
$0.84
$0.50
$0.75
$1.00
$1.25
$500
$1,000
$1,500
America• Repurchased 1.1 million
shares – 5.4 million shares YTD
$0.00
$0.25
$0FY13 FY12
Net Sales EPS
• Increased FY13 adjusted EPS** estimate range– $3.60 to $3.70
OSK Investor Slides September 201315
* Continuing operations only.
* * FY13 expectations exclude certain non-GAAP adjustments (see Appendix).
Recent PerformanceAccess Equipment• Continue to benefit from replacement demand in
North AmericaNorth America• Global conditions remain mixedDefense• Strong operations execution; effectively managing
recent downsizing• Continuing to pursue international businessFire & Emergency• Municipal demand improving, federal demand
remains low• Benefitting from international salesCommercial• Concrete mixer deliveries and orders remain strong
OSK Investor Slides September 2013
• Concrete mixer deliveries and orders remain strong• Continuing to invest in MOVE
16
Higher Expectations for FY13*• Revenue range of $7.6 billion to $7.7 billion• Adjusted operating income range of $515 million to $525 million• Adjusted EPS from continuing operations range of $3.60 to $3.70Segment Information
MeasureMeasure Access Access EquipmentEquipment DefenseDefense Fire & Fire &
EmergencyEmergency CommercialCommercial
Sales(billions) ~$3.1 ~$3.1 Nearly $0.8 $0.72 - $0.75
Operating 12 0%-12 25% ~7 5% 2 0%-2 5% 4 5%-5 0%
Additional Expectations• Adjusted corporate expenses ~$145 million
Income Margin 12.0%-12.25% 7.5% 2.0%-2.5% 4.5%-5.0%
Comments on Fourth Quarter• Expect lowest quarter EPS of the j
(higher share-based compensation and IT investments vs. FY12)
• Tax rate of ~29.5%• CapEx of ~$45 million
year due to seasonality and defense sales decline.
OSK Investor Slides September 201317
• Free cash flow ~$275-$300 million• Average full year share count** of 88.8 million * FY13 expectations reflect certain non-GAAP adjustments (see Appendix).
** Excludes impact of any additional share repurchases in Q4.
Committed to Shareholders• Aggressively driving to achieve MOVE targets
– Earnings per share of $4.00 to $4.50 in 2015
• Attacking product, process and overhead costs
• Applying disciplined capital allocation strategy• Applying disciplined capital allocation strategy
• Will sustain active shareholder outreach
• Deploying Oshkosh Operating System globallyDeploying Oshkosh Operating System globally to sustain lean culture and drive results
OSK Investor Slides September 201318
For more For more information information contact: contact: Patrick N. DavidsonVice President, Investor Relations(920) 966-5939( )[email protected]
Jeffrey D. WattDirector, Investor Relations(920) 233-9406(920) [email protected]
OSK Investor Slides September 2013
(Dollars in millions)
Appendix: Q3 Access Equipment
Third Quarter
(Dollars in millions)
Comments
Net Sales $941.5 $814.6% Ch 15 6% 40 4%
2013 2012 • Sales impacted by: Higher volume in
North America Price realization% Change 15.6% 40.4%
Operating Income $154 5 $88 2
Price realization Higher aftermarket volume Lower volume in Australia
• Margins impacted by:Operating Income $154.5 $88.2
% Change 75.1% 199.7%% Margin 16.4% 10.8%
Price realization Product and process cost
reduction Product mix
• Backlog down 15% vs.prior year to $621 million Mostly due to lower military
backlog
OSK Investor Slides September 2013
bac og
20
Appendix: Q3 Defense(Dollars in millions)
• Sales impacted by:
CommentsThird Quarter
( )
2013 2012 Lower U.S. DoD volume
International truck shipments
Net Sales $879.6 $958.5% Change (8.2)% (13.4)%
• Margins impacted by: Higher international
sales mixOperating Income $85.8 $40.2
% Change 113 8% (64 3)% Finalization of UCA
pricing
Operational efficienciesB kl d 42%
% Change 113.8% (64.3)%% Margin 9.8% 4.2%
• Backlog down 42% vs. prior year to $1.9 billion
OSK Investor Slides September 2013 21
(Dollars in millions)
Appendix: Q3 Fire & Emergency
Third Quarter*
( )
2013 Sales impacted by:
Comments
Net Sales $204.3 $229.6% Change (11.0)% 10.1%
2013 2012 • Sales impacted by: Lower unit volumes
• Margins impacted by:L b ti
g ( )
OperatingIncome $6 5 $8 1
Lower absorption Price realization
• Backlog* essentially flat with prior year at $503Income $6.5 $8.1
% Change (18.8)% (39.6)%% Margin 3.2% 3.5%
with prior year at $503 million
OSK Investor Slides September 2013 22
* Continuing operations only.
Appendix: Q3 Commercial(Dollars in millions)
• Sales impacted by:
CommentsThird Quarter( )
2013 2012+ Higher concrete mixer
sales+ Higher content units
Net Sales $194.7 $176.2% Change 10.5% 11.2%
Lower RCV sales
• Margins impacted by: Restructuring related
t
Operating Income $10.0 $12.1% Change (17.8)% 224.3%
costs
• Backlog up 13% vs. prior year to $167 million
% Margin 5.1% 6.9%
OSK Investor Slides September 2013 23
Appendix: Commonly UsedAcronymsyARFF Aircraft Rescue and Firefighting M-ATV MRAP All-Terrain Vehicle
AWP Aerial Work Platform MECV Modernized Expanded Capability Vehicle
CapEx Capital Expenditures MRAP Mine Resistant Ambush Protected
CNG Compressed Natural Gas MSVS Medium Support Vehicle System (Canada)
DoD Department of Defense NPD New Product Development
EAME Europe, Africa & Middle East NOL Net Operating Loss
EMD Engineering & Manufacturing Development OI Operating Income
EPS Diluted Earnings Per Share PLS Palletized Load System
FHTV Family of Heavy Tactical Vehicles PUC Pierce Ultimate Configuration
FMS Foreign Military Sales R&D Research & Development
FMTV Family of Medium Tactical Vehicles RCV Refuse Collection Vehicle
HEMTT Heavy Expanded Mobility Tactical Truck RFP Request for Proposal
HET Heavy Equipment Transporter ROW Rest of World
HMMWV High Mobility Multi-Purpose Wheeled Vehicle SMP Standard Military Pattern (Canadian MSVS)
IT Information Technology TACOM Tank-automotive and Armaments Command
JLTV Joint Light Tactical Vehicle TDP Technical Data Package
JPO Joint Program Office TFFT Tactical Fire Fighting Truck
JROC Joint Requirements Oversight Council TPV Tactical Protector Vehicle
JUONS Joint Urgent Operational Needs Statement TWV Tactical Wheeled Vehicle
OSK Investor Slides September 2013 24
L-ATV Light Combat Tactical All-Terrain Vehicle UCA Undefinitized Contract Action
LVSR Logistic Vehicle System Replacement UIK Underbody Improvement Kit (for M-ATV)
Appendix: Non-GAAP to GAAP Reconciliation eco c at o• The table below presents a reconciliation of the Company’s presented non-GAAP measures to the
most directly comparable GAAP measures (in millions, except per share amounts):
Fiscal 2013 ExpectationspCorporateNon-GAAP operating expenses (145.0)$ Tender offer and proxy contest costs (16.3) GAAP operating expenses (161.3)$
Low HighConsolidatedNon-GAAP operating income 515.0$ 525.0$ Tender offer and proxy contest costs (16.3) (16.3)
Fiscal 2013 Expectations
GAAP operating income 498.7$ 508.7$
Non-GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 3.60$ 3.70$ Tender offer and proxy contest costs, net of tax (0.11) (0.11) GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 3.49$ 3.59$
Net cash flows provided by operating activities 335.0$ 360.0$ Additions to property, plant and equipment (45.0) (45.0)
OSK Investor Slides September 2013 25
Additions to equipment held for rental (19.0) (19.0) Proceeds from sale of equipment held for rental 4.0 4.0 Free cash flow 275.0$ 300.0$
Appendix: Non-GAAP to GAAP Reconciliation (Cont’d)eco c at o (Co t d)• 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):
2013 2012Non-GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 3.23$ 1.66$
Nine Months EndedJune 30,
Tender offer and proxy contest costs, net of tax (0.11) (0.05) Discrete tax benefits - 0.15 GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 3.12$ 1.76$
2013 2012
Nine Months EndedJune 30,
Net cash flows provided by operating activities 247.5$ 74.3$ Additions to property, plant and equipment (25.2) (33.9)Additions to equipment held for rental (13.1) (5.9)Proceeds from sale of equipment held for rental 6.9 3.2Free cash flow 216.1$ 37.7$
OSK Investor Slides September 2013 26