Q3 2015 earnings slides (final)

MOVING THE WORLD AT WORK

Oshkosh Corporation Classification: Highly Restricted

Third Quarter Fiscal 2015 July 30, 2015

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

Oshkosh Corporation (NYSE:OSK)



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, which are particularly impacted by the strength of U.S. and European economies; the Company’s estimates of access equipment demand; 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 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 lower customer orders in the defense segment; the Company’s ability to win a JLTV production contract award and finalize international contracts for a significant quantity of M-ATVs, with sales beginning in fiscal 2016; 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 that may 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; risks related 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.

July 30, 2015 OSK Third Quarter 2015 Earnings Call 2



Q3 FY15 Results

Q3 EPS of $1.13

- Below expectations

- Shortfall due to lower year over year sales of access equipment

Updated FY15 adjusted EPS* estimate to range of $3.00 to $3.25

Defense segment positioned for stronger performance in FY16

Magnitude, along with improved fire & emergency and commercial segment results, provides overall positive outlook for Oshkosh EPS growth in FY16

Expect to become active again with share repurchases

Net Sales (billions)

EPS

3

$1.6

$1.9

$1.13 $1.23*

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

$2.0

FY15 FY14Net Sales EPS

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

OSK Fiscal Q3 Performance

July 30, 2015 OSK Third Quarter 2015 Earnings Call



Defense

First yr/yr backlog increase since 2011

Secured contract orders for FHTV

recapitalization and FMTV

FHTV sales to restart in Q4

Expect to ship 150 M-ATVs internationally

in Q4; revenue recognition now assumed

in FY16

Progress pursuing much larger M-ATV

orders to benefit FY16 and beyond

Not awarded Canadian MSVS contract

Expect JLTV decision in September




Access Equipment

Believe fundamental business drivers remain

intact

Improving U.S. residential and non-residential

construction; strong rental company metrics

Moderating replacement demand for aged fleets

in Europe

Product adoption in developing markets

Expect mid-cycle sales decline of

approximately 5% - 10% in FY16 primarily

due to lower U.S. and European replacement

demand

Actions to address inventory levels and costs

Acquired Power Towers low level access

business




Fire & Emergency

Progress addressing operational

efficiencies

Assembly line changes completed

in Q3

Expect modest North American

market growth in 2015

Strong orders at Pierce led to share

gains

Innovative new product offerings at

recent industry gatherings

Revolutionary Ascendant™ single

rear axle 107’ aerial ladder

Oshkosh® XP fire apparatus

introduced at Interschutz 2015




Commercial

Double digit sales growth

led by RCV products

Growing RCV share in a slowly

improving market

New Meridian lighter weight

RCV introduced at Waste

Expo in June

Concrete mixer sales up

Driven by higher content units

Experienced order slowdown

in Q3




Consolidated Results

Sales impacted by:

Lower defense and access

equipment segment sales

Higher commercial and fire &

emergency segment sales

EPS impacted by:

Lower defense and access

equipment segment results

Foreign currency exchange

Higher commercial and fire &

emergency segment results

Lower incentive compensation

Lower share count

Tax audit settlement

Q3 Comments

(Dollars in millions, except per share amounts)

Third Quarter

Net Sales $1,612.3 $1,932.4

% Change (16.6)% (12.3)%

Operating Income $136.6 $175.3*

% Change (22.1)% (22.3)%

% Margin 8.5% 9.0%

EPS $1.13 $1.23*

% Change (8.1)% (26.3)%

2015 2014





Updated Expectations for FY15

Additional expectations Corporate expenses of $125 - $130 million

Tax rate of ~ 32%

CapEx of ~ $150 million

Cash usage* ~ $150 million

Assumes share count of ~ 79.5 million

Segment information

Revenues of ~ $6.1 billion

Adjusted operating income* of $400 million to $425 million

Adjusted EPS* of $3.00 to $3.25


9

Q4 Commentary EPS lower than prior year as a result of lower

expected access equipment sales and operating

income

Measure Access

Equipment Defense

Fire & Emergency Commercial

Sales

(billions) ~ $3.4 ~ $0.9 ~ $0.8 ~ $1.0

Operating

Income Margin ~ 12.8%

Slightly Above

Break Even ~ 4.25% ~ 6.5%

July 30, 2015 OSK Third Quarter 2015 Earnings Call



For information

contact:

Patrick N. Davidson

Vice President, Investor Relations

(920) 966-5939

[email protected]

Jeffrey D. Watt

Director, Investor Relations

(920) 233-9406

[email protected]




Net Sales $932.6 $1,039.2

% Change (10.3)% 10.4%

Operating Income $136.4 $166.8

% Change (18.2)% 8.0%

% Margin 14.6% 16.0%

Third Quarter

(Dollars in millions)

2015 2014

Appendix: Access Equipment

Sales impacted by:

Reduced deliveries as a result of weather-related construction delays and oil & gas price decline

Unfavorable foreign currency

New product launch challenges

Operating income impacted by:

Lower sales volume

Unfavorable currency impact of $6.9 million

New product launch challenges

Lower incentive compensation

Backlog down 19% vs. prior year to $395 million (down 14% on a constant currency basis)

Q3 Comments




Appendix: Defense

Sales impacted by:

FHTV break in production

Lower FMTV sales

International M-ATV sales in prior

year


Lower sales volume

Backlog up 38% vs. prior year

to $1.2 billion

First increase in yr/yr backlog

since Q4 2011

Q3 Comments

Net Sales $194.2 $470.7

% Change (58.7)% (46.5)%

Adjusted Operating

Income / (Loss) $(7.1) $20.1*

% Change (135.3)% (76.6)%

% Margin (3.7)% 4.2%

Third Quarter


2015 2014





Net Sales $199.8 $187.5

% Change 6.6% (8.3)%


% Change 55.5% (5.2)%

% Margin 4.8% 3.3%

Third Quarter


2015 2014

Appendix: Fire & Emergency

Sales impacted by:

Higher content fire trucks

Higher airport products unit

shipments


Higher sales volume

Backlog up 42% vs. prior year

to $761 million

Q3 Comments




Appendix: Commercial

Sales impacted by:

Higher RCV unit sales

Higher content concrete mixer

sales


Higher sales volume

MOVE investments

Backlog up 5.4% vs. prior year

to $218 million

Q3 Comments

Net Sales $294.0 $247.3

% Change 18.9% 27.0%


% Change 12.9% 98.6%

% Margin 7.6% 8.0%

Third Quarter


2015 2014




Appendix: Commonly Used Acronyms

15 July 30, 2015 OSK Third Quarter 2015 Earnings Call

ARFF Aircraft Rescue and Firefighting MECV Modernized Expanded Capability Vehicle

AWP Aerial Work Platform MRAP Mine Resistant Ambush Protected

CapEx Capital Expenditures MSVS Medium Support Vehicle System (Canada)

CNG Compressed Natural Gas NOL Net Operating Loss

DGE Diesel Gallon Equivalent NPD New Product Development

DoD Department of Defense NRC National Rental Company

EAME Europe, Africa & Middle East OCO Overseas Contingency Operations

EMD Engineering & Manufacturing Development OH Overhead

EPS Diluted Earnings Per Share OI Operating Income

FHTV Family of Heavy Tactical Vehicles OOS Oshkosh Operating System

FMS Foreign Military Sales OPEB Other Post-Employment Benefits

FMTV Family of Medium Tactical Vehicles PLS Palletized Load System

GAAP U.S. Generally Accepted Accounting Principles PUC Pierce Ultimate Configuration

HEMTT Heavy Expanded Mobility Tactical Truck R&D Research & Development

HET Heavy Equipment Transporter RCV Refuse Collection Vehicle

HMMWV High Mobility Multi-Purpose Wheeled Vehicle RFP Request for Proposal

IRC Independent Rental Company ROW Rest of World

IT Information Technology SMP Standard Military Pattern (Canadian MSVS)

JLTV Joint Light Tactical Vehicle TACOM Tank-automotive and Armaments Command

JPO Joint Program Office TDP Technical Data Package

JROC Joint Requirements Oversight Council TPV Tactical Protector Vehicle

JUONS Joint Urgent Operational Needs Statement TWV Tactical Wheeled Vehicle

L-ATV Light Combat Tactical All-Terrain Vehicle UCA Undefinitized Contract Action

LVSR Logistic Vehicle System Replacement UIK Underbody Improvement Kit (for M-ATV)

M-ATV MRAP All-Terrain Vehicle UK

ZR

United Kingdom

Zero Radius




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):

2015 2014 2015 2014

Adjusted defense operating income (loss) (non-GAAP) (7.1)$ 20.1$ (12.7)$ 83.5$

Pension and OPEB curtailment - 9.7 3.4 5.6

Contract pricing adjustment for OPEB costs - (10.7) - (10.7)

Defense operating income (loss) (GAAP) (7.1)$ 19.1$ (9.3)$ 78.4$

Adjusted operating income (non-GAAP) 136.6$ 175.3$ 308.6$ 395.3$

Pension and OPEB curtailment - 9.7 3.4 5.6

Contract pricing adjustment for OPEB costs - (10.7) - (10.7)

Operating income (GAAP) 136.6$ 174.3$ 312.0$ 390.2$

Adjusted net income (non-GAAP) 89.9$ 105.7$ 186.4$ 229.6$

Reduction of valuation allowance on net operating

loss carryforward - - - 12.1

Pension and OPEB curtailment, net of tax - 6.2 2.1 3.6

Contract pricing adjustment for OPEB costs, net of tax - (6.8) - (6.8)

Debt extinguishment costs, net of tax - - (9.3) (7.0)

Net income (GAAP) 89.9$ 105.1$ 179.2$ 231.5$

Adjusted earnings per share-diluted (non-GAAP) 1.13$ 1.23$ 2.34$ 2.66$

Reduction of valuation allowance on net operating

loss carryforward - - - 0.14

Pension and OPEB curtailment, net of tax - 0.07 0.03 0.04

Contract pricing adjustment for OPEB costs, net of tax - (0.08) - (0.08)

Debt extinguishment costs, net of tax - - (0.12) (0.08)

Earnings per share-diluted (GAAP) 1.13$ 1.22$ 2.25$ 2.68$

Three Months Ended

June 30,

Nine Months Ended

June 30,




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):

Low High

Adjusted operating income (non-GAAP) 400.0$ 425.0$

OPEB curtailment gain 3.4 3.4

Operating income (GAAP) 403.4$ 428.4$

Adjusted earnings per share - diluted (non-GAAP) 3.00$ 3.25$

OPEB curtailment gain, net of tax 0.03 0.03

Debt extinguishment costs, net of tax (0.12) (0.12)

Earnings per share - diluted (GAAP) 2.91$ 3.16$

Fiscal 2015

Expectations

Net cash flows from operating activities 10.0$

Additions to property, plant and equipment (150.0)

Net additions to equipment held for rental (10.0)

Cash usage (150.0)$

Fiscal 2015 Expectations