Oshkosh Corporation Q2 2016 Earnings Slides

MOVING THE WORLD AT WORK

Second Quarter Fiscal 2016April 28, 2016

Wilson R. JonesPresident and Chief Executive Officer

David M. SagehornExecutive Vice President and Chief Financial Officer

Patrick N. DavidsonVice President, Investor Relations

Oshkosh Corporation (NYSE:OSK)


Forward-Looking StatementsThis 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 dollar and its impact on Company exports, translation of foreign sales and purchased materials; the expected level and timing of U.S. DoD and international defense customer procurement of products and services and funding or payments thereof; 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 funding or payments 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 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.

April 28, 2016OSK Second Quarter 2016 Earnings Call 2


Q2 FY16

Q2 EPS of $0.76− Exceeded expectations (timing,

performance and tax) Higher sales, operating income

and operating income margin vs. prior year in all segments except access equipment

JLTV protest resolved Awarded international contract

for more than 1,000 M-ATVs Slight increase in full year EPS

outlook range to $2.30 to $2.70− Driven primarily by lower tax rate

and increased defense estimates

Net Sales(billions)

AdjustedEPS*

3

$1.5 $1.6

$0.76 $0.81

$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

FY16 FY15Net Sales Adjusted EPS*

* Non-GAAP results for FY15. See Appendix for reconciliation to GAAP results.

OSK Fiscal Q2 Performance

April 28, 2016OSK Second Quarter 2016 Earnings Call


Access Equipment Stronger than expected demand in Q2

− Believe largely timing

− Supportive of responsible level of fleet investment

Backlog supports second half of 2016 outlook

Positive sentiment at recent trade shows− BAUMA 2016

− ARA Rental Show

Mixed global market conditions continue

Inventory reduction in Q2; expected to continue in second half

Believe long-term trends continue to be positive− Construction growth

− Global product adoption

− New applications for access equipment



Defense Defense segment outlook

continued to improve JLTV ramp up gaining momentum− Competitor protest actions withdrawn− Production ramp up expected to be

quicker than previous expectations Positive multi-year domestic outlook− FY16 contract awards− FY17 President’s budget request

Actively pursuing international contracts Awarded contract for more than 1,000

M-ATVs (funding and delivery schedule not yet finalized)

Multiple other opportunities



Fire & Emergency Another quarter of improved

performance Continued modest market recovery Improved municipal spending Large city fleet replacement

Revolutionary Ascendant™ two-axle aerial ladder truck continues to gain momentum− Contributing to share gains

Raised production rate during the quarter Leveraging improved operational

performance Additional production rate increase

planned later in calendar 2016



Commercial Improved results compared to prior

year quarter Fleet replenishment drove continued

RCV market demand New lighter weight Meridian front

end loader RCV− Beginning initial shipments− Market anticipation is high

Improved yr/yr concrete mixer order rate 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



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.



Updated 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

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

9

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%

April 28, 2016OSK Second Quarter 2016 Earnings Call


For informationcontact:

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

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



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 excluded from 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: Commonly Used Acronyms

15April 28, 2016OSK Second Quarter 2016 Earnings Call

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: 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$