ghs conference investor presentation final

MOVING THE WORLD AT WORK

Oshkosh Corporation (NYSE:OSK)

Global Hunter Securities 4th Annual Industrials ConferenceSeptember 2, 2015


Forward-Looking Statements

2September 2, 2015Oshkosh Corporation Investor Presentation

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 ofaccess 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, an uncertain DoD tactical wheeled vehicle strategy and uncertainties associated with government contracts; risks related to the JLTV production contract award that the Company recently received, including those associated with commencement of production under the contract; the Company’s ability to 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 July 30, 2015. 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.


Oshkosh Corporation

Leading provider of specialty vehicles– Moving the World at Work

Nearly 100 years in business; incorporated in 1917

Serial innovator of game changing new products

Market Capitalization(1): $3.3 billion

FY14 Revenue: $6.8 billion

Focused on delivering value to customers and shareholders

3

(1) As of August 31, 2015

Access Equipment Defense Fire & Emergency Commercial

September 2, 2015Oshkosh Corporation Investor Presentation


MOVE Strategy Driving Performance… Focuses on drivers that

create highest shareholder value Supports higher margin

targets across non-defense businesses over the cycle


…And Beyond FY15


Recent PerformanceSome Success, Some Near-Term Challenges

Access equipment demand softened beginning in Q3– Actively managing costs and

inventory levels Increased sales, operating income

and backlog in Q3 at Fire & Emergency and Commercial segments

Won U.S. DoD JLTV contract to supply Armed Forces for 8 years

Inflection point in defense earnings in Q4– Re-starting FHTV production– Backlog up 38% at June 30; first

increase since Q4 FY11 International contracts expected

to drive return to growth in FY16 and FY17



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

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

6

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%


** As of July 30, 2015.


Continuing to MOVE ForwardOvercoming Short-Term ChallengesExpectations: Solid EPS growth in FY16 and FY17 Defense returning to meaningful growth

– From trough earnings in FY15 Continued recovery in commercial and fire &

emergency segments Overcome mid-cycle dip in access equipment

demand in FY15/FY16– Partially mitigate impact with cost reduction

Resuming meaningful share repurchases – Repurchased ~ 2.6 million shares during Q4 FY15

to August 31– New 10 million share

authorization




Basis for Outlook


Access Equipment –The Market Leader

MOVE is delivering− Margin improvement remains a

top opportunity− New products driving customer

demand− Product adoption continues globally− Market recovery element

continues to lag

Believe longer-term fundamental business drivers remain intact– Improving residential and non-

residential construction– Replacement demand in Europe– Product adoption in developing markets

Expect 5 – 10% sales decline in FY16

9

Reaching Out – Rising to Every Challenge



Slow U.S. Construction Recovery is Continuing

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Source: U.S. Census Bureau, August 18, 2015 Source: U.S. Census Bureau, September 1, 2015

U.S. Housing Starts - Current Annual Forecasts (millions)

Date 2015 2016 2017Global Insight May-15 1.08 1.30 1.45Moody's - Slower Recovery Jul-15 1.04 1.20 1.64Portland Cement Association Apr-15 1.18 1.34 1.53Average Analyst Estimate 1.10 1.28 1.54

U.S. Nonresidential Construction (yr/yr Growth) - Current Analyst EstimatesDate 2015 2016 2017

Portland Cement Association Apr-15 8.8% 8.3% 6.3%FMI Source Jun-15 8.0% 6.0% 5.0%Global Insight Jun-15 1.8% 4.0% 2.8%Moody's – Slower Recovery Jul-15 5.3% 6.2% 7.9%Construction Market Data Aug-15 10.4% 7.8% N/A Dodge Data & Analytics Aug-15 11.6% 12.8% N/AAverage Analyst Estimate 7.7% 7.5% 5.5%

Thousands $ MillionsU.S. Non-Residential SpendingHousing Starts


400

500

600

700

800

900

1,000

1,100

1,200

1,300

Jan‐2010

Jul‐2

010

Jan‐2011

Jul‐2

011

Jan‐2012

Jul‐2

012

Jan‐2013

Jul‐2

013

Jan‐2014

Jul‐2

014

Jan‐2015

Jul‐1

5

450,000

500,000

550,000

600,000

650,000

700,000

Jan‐2010

Jul‐2

010

Jan‐2011

Jul‐2

011

Jan‐2012

Jul‐2

012

Jan‐2013

Jul‐2

013

Jan‐2014

Jul‐2

014

Jan‐2015

Jul‐1

5


Defense –Returning to Growth with Upside Opportunities

Believe FY15 will be trough year for both revenues and operating income

Winner of JLTV production contract – awarded on August 25

Secured major contract orders for FHTV recap and FMTV

First year-over-year backlog increase since FY11

Pursuing thousands of international M-ATV unit sales– Broad family of variants– Few hundred on contract in FY15– Expect contract for > 1,000 in early

FY16; majority for FY16 delivery– Expect additional contracts for

2,000+ M-ATV’s in FY16 for delivery after FY16

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Mission Proven – World-Class Performance



Oshkosh L-ATV is JLTVAnything Else is Something Less

Named winner of intensive competition on August 25, 2015

Program requirements of ~55,000 units over 20+ years– Oshkosh contract valued at $6.7B for

~17,000 units over 8 years– Full rate production begins in 3 years

Highly protected, extreme mobility, affordable

Significant international interest

September 2, 2015Oshkosh Corporation Investor Presentation 12


Fire & Emergency –Operational Improvements Leading the Way

Continuing to execute operational efficiency roadmap− Completed assembly line changes

Positive response to recent new product launches– Revolutionary Ascendant™ two

axle aerial ladder vehicle

Modest market growth expectedin North America in FY15– Strong orders at Pierce led to

share gains Additional international success− ARFF orders in Asia, Australia

and Latin America

13

Recently Launched New Products Driving Customer Interest



Commercial –Progress Continues

MOVE investments continue Solid North American concrete

mixer market recovery over last several years− Driven by slowly improving

housing market− Experienced order slowdown in

Q3 FY15

Double digit sales growth in FY15 led by RCV products– Growing RCV share in a slowly improving

market Split Body Rear Loader and Automated

Side Loader RCV models generating incremental demand

Meridian Lightweight Front End Loader commences production in Q2 FY16

14

North American Market Leader Split Body Rear Loader



Driving to the Future


Driving to the Future


What to Expect from Oshkosh?

MOVE strategy evolves– Margin improvement in non-

Defense segments– Launch game-changing new

products– Compete vigorously for business

around the world

Target defense contract awards

Maintain strong customer focus

Increase industry-leading quality to higher level

Drive shareholder value



What Are Our Performance Targets? Continued improvement

Execute effectively to deliver positive FY16/FY17 outlook

Continue operating income margin expansion – Target 16% – 17% at Access Equipment– Initially target 10% at other segments

Prudent capital allocation– Deploy cash with crocodile patience Reinvest in business Opportunistic share repurchases

– Target annual dividend increases Sustain talent and process

improvement to outperform with Oshkosh Operating System

17

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


5.0%

7.0%7.5% 6.5% – 7.0%

10.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

FY12 FY13 FY14 FY15E Target

Consolidated Adjusted Operating Income Margins*


Oshkosh Corporation Profile - FY15 YTD

Source: Oshkosh Corporation Form 10-Q for quarter ended June 30, 2015

18Oshkosh Corporation Investor Presentation September 2, 2015

58%

14%

12%

16%

Revenue by Segment

Access Equipment Defense Fire & Emergency Commercial

79%

5%8%

8%

Revenue by Geography

United States Other NA EAME Rest of World

Continuing to evolve to a more global industrial− Defense expected to contribute to global footprint


19

Continuing to MOVE ForwardOvercoming Short-Term ChallengesExpectations:


Solid EPS growth in FY16 and FY17 Defense returning to meaningful growth

– From trough earnings in FY15 Continued recovery in commercial and fire &

emergency segments Overcome mid-cycle dip in access equipment

demand in FY15/FY16– Partially mitigate impact with cost reduction

Resuming meaningful share repurchases – Repurchased ~ 2.6 million shares during Q4 FY15

to August 31– New 10 million share

authorization


For informationcontact:

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

20

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



21

Appendix: Commonly Used AcronymsARFF Aircraft Rescue and Firefighting MECV Modernized Expanded Capability VehicleAWP Aerial Work Platform MRAP Mine Resistant Ambush ProtectedCapEx Capital Expenditures MSVS Medium Support Vehicle System (Canada)CNG Compressed Natural Gas NOL Net Operating LossDGE Diesel Gallon Equivalent NPD New Product DevelopmentDoD Department of Defense NRC National Rental CompanyEAME 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 & DevelopmentHEMTT Heavy Expanded Mobility Tactical Truck RCV Refuse Collection VehicleHET Heavy Equipment Transporter RFP Request for ProposalHMMWV High Mobility Multi-Purpose Wheeled Vehicle ROW Rest of WorldIRC Independent Rental Company SMP Standard Military Pattern (Canadian MSVS)IT Information Technology TACOM Tank-automotive and Armaments CommandJLTV Joint Light Tactical Vehicle TDP Technical Data PackageJPO Joint Program Office TPV Tactical Protector VehicleJROC Joint Requirements Oversight Council TWV Tactical Wheeled VehicleJUONS Joint Urgent Operational Needs Statement UCA Undefinitized Contract ActionL-ATV Light Combat Tactical All-Terrain Vehicle UIK Underbody Improvement Kit (for M-ATV)LVSR Logistic Vehicle System Replacement UK United KingdomM-ATV MRAP All-Terrain Vehicle ZR 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):

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 2015Expectations

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



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 :

Fiscal Year EndedSeptember 30,

2012 2013 2014 2015E

Consolidated operating income margins (non-GAAP) 5.0% 7.0% 7.5% 7.0%Union contract ratification costs - -0.1% - -Performance share valuation adjustment -0.1% - - -Pension and OPEB curtailment gain - - 0.1% -Tender offer and proxy contest costs -0.1% -0.2% - -Impairment charge - -0.1% - -Contract pricing adjustment for OPEB costs - - -0.2% -Consolidated operating income margins (GAAP) 4.8% 6.6% 7.4% 7.0%