q4 2016 earnings slides v8

MOVING THE WORLD AT WORK

Fourth Quarter Fiscal 2016November 1, 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 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 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 U.S. dollar and its impact on Company exports, translation of foreign sales and purchased materials; the expected level and timing of U.S. Department of Defense (DoD) and international defense customer procurement of products and services and acceptance of and funding or payments for such products and services; the outcome of a competitor’s protest of orders we received from the DoD; 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 Family of Medium Tactical Vehicle 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 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.

November 1, 2016OSK Fourth Quarter 2016Earnings Call 2


Q4 FY16 Results

Q4 FY16 adjusted EPS* of $1.05

Higher defense segment sales

− 325 international M-ATVs

Higher adjusted operating income margin vs. prior year in defense and access equipment segments

Strong free cash flow

Maintaining full year FY17 EPS outlook range of $3.00 to $3.40

Net Sales(billions) Adjusted EPS*

3

OSK Fiscal Q4 Performance

November 1, 2016OSK Fourth Quarter 2016 Earnings Call

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

$1.05

$0.67

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

FY16 FY15

$1.8$1.6

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

$2.0

FY16 FY15


OSK Full Year Performance

Full Year FY16 Results

Revenue and adjusted EPS growth driven by:– Strong defense shipments– Improved fire & emergency

results

Improving operations− Focus on operational efficiencies

and simplifying our businesses

Repurchased 2.5 million shares or ~3% of outstanding shares

Announced 11% dividend increase effective November 17

Generated $490 millionfree cash flow*

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

4November 1, 2016OSK Fourth Quarter 2016 Earnings Call

Net Sales(billions) Adjusted EPS*

$3.14 $3.02

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

FY16 FY15

$6.3 $6.1

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

FY16 FY15


Access Equipment

Maintaining previous outlook for FY17 North America market remains cautious− Rental companies selective with new

equipment purchases− Lower replacement demand Growth in Europe− Signs of recovery in southern Europe− Continued recovery in Benelux and

Nordics− Brexit driven pause in UK

Achieved inventory reduction goal Plan to outsource aftermarket parts

distribution Long-term outlook remains positive

November 1, 2016OSK Fourth Quarter 2016 Earnings Call 5


Defense Strong finish to strong year Initial deliveries of JLTV started in Q4− Supports government testing during LRIP− Eight years of U.S. DoD demand with

initial contract− Solid long-term international opportunity

FMTV update− Additional orders received in September

as expected− Competitor filed protest with GAO;

resolution expected in January 2017 Continuing to work towards additional

opportunities for international sales− Positive impact on FY16 performance

with growth in FY17



Fire & Emergency Strong performance driven by

streamlined operations and improved North American market− 160 bps increase in operating

income margin in FY16− Q4 operating income margin

supports full year FY17 margin target Building on strengths in traditional

fire truck market − New products/technology− Improved municipal tax receipts− Dealer network investing for growth

Airport products revenue lower− Large international sales in Q4 FY15− Strong U.S. dollar Aging fleets support longer

term outlook



Commercial Slightly higher full year results and

operating income margin compared to prior year on flat sales

RCV business remains solid despite expected moderation in near term− Strong municipal tax receipts and

construction support continuing demand Concrete mixer customers remain

cautious− Waiting for positive construction

trends to be more pronounced− Fleet age expected to become

positive driver Committed to deliver margin

improvement



Consolidated Results

Sales impacted by: Higher sales in each segment,

led by defense

EPS impacted by: Higher defense and access

equipment segment operating income

Lower average share count

− Higher corporate expenses

Q4 Comments

(Dollars in millions, except per share amounts)

Fourth Quarter

Net Sales $1,755.4 $1,578.3% Change 11.2% (5.4)%

Adjusted OperatingIncome* $123.3 $89.5

% Change 37.7% (23.4)%% Margin 7.0% 5.7%

Adjusted EPS* $1.05 $0.67% Change 56.7% (30.2)%

2016 2015


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


FY17 Estimates

10

Revenues of $6.5 to $6.7 billion

Operating income of $390 million to $430 million

EPS of $3.00 to $3.40

Assumptions– No recession– Sale of ~1,000 International M-ATVs– Continued caution by construction equipment customers– Slow recovery of N.A. fire apparatus market continues– Moderating refuse collection vehicle market growth– Working capital build to support international

defense sales

Additional estimates– Corporate expenses of $140 - $145 million– Tax rate of ~33%– CapEx of ~$100 million– Free Cash Flow* of $0 to $50 million– Assumes share count of ~74.5 million

Segment information

Measure Access Equipment Defense Fire &

Emergency Commercial

Sales(billions) $2.7 to $2.8 ~$1.85 ~$1.0 ~$1.0

Operating IncomeMargin 7.75% - 8.5% ~9.5% ~8.5% ~6.75%

OSK Fourth Quarter 2016 Earnings Call November 1, 2016



Positive Long-Term Outlook for OshkoshA Different Integrated Global Industrial Favorable end market drivers Shared operations People First culture

MOVE – Evolving to deliver more valueWell positioned for long-term success



For informationcontact:

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

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



Net Sales $775.8 $769.5% Change 0.8% (17.5)%

Adjusted Operating Income* $73.0 $59.0

% Change 23.7% (53.7)%% Margin 9.4% 7.7%

Fourth Quarter

(Dollars in millions)

2016 2015

Appendix: Access Equipment

Sales impacted by: Higher volume in EMEA and

Pacific Rim− Competitive pricing

Operating income impacted by: Lower spending on engine

emissions standards changes Lower material costs Lower provisions for valuation

reserves on used equipment− Competitive pricing

Backlog down 14% vs. prior year to $179 million

Q4 Comments




Appendix: Defense

Sales impacted by: Higher international M-ATV and

FHTV volume

Operating income impacted by: Higher sales volume Prior year provisions for

contract audits

Backlog up 65% vs. prior year to $2.3 billion*

Q4 Comments

Net Sales $471.8 $317.6% Change 48.5% 10.3%

Operating Income $52.4 $18.5% Change 183.4% 989.8%% Margin 11.1% 5.8%

Fourth Quarter


2016 2015


* Includes $380 million of FMTV orders under protest.


Net Sales $256.9 $245.4% Change 4.7% 14.2%

Operating Income $22.3 $23.7% Change (5.8)% 89.2%% Margin 8.7% 9.6%

Fourth Quarter


2016 2015

Appendix: Fire & Emergency

Sales impacted by: Higher Pierce fire truck volume− Lower airport products volume

Operating income impacted by:− Unfavorable airport products

and broadcast vehicle mix Higher sales volume

Backlog up 8% vs. prior year to $853 million

Q4 Comments



Appendix: Commercial

Sales impacted by: Higher concrete mixer volume− Lower service truck volume

Operating income impacted by:− Production inefficiencies

associated with new product launches

− Investments in MOVE initiatives

Backlog down 10% vs. prior year to $173 million

Q4 Comments

Net Sales $254.3 $252.9% Change 0.6% 3.8%

Operating Income $17.7 $21.1% Change (15.9)% 14.6%% Margin 7.0% 8.4%

Fourth Quarter


2016 2015




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):

Fiscal 2016Net cash flows provided by operating activities $ 577.7Additions to property, plant and equipment (92.5)Additions to equipment held for rental (34.8)Proceeds from sale of equipment held for rental 40.2Free cash flow $ 490.6

Fiscal 2017 Fiscal 2017Low High

Expectations ExpectationsNet cash flows provided by operating activities $ 100.0 $ 150.0 Additions to property, plant and equipment (100.0) (100.0)Free cash flow $ - $ 50.0



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):

2016 2015 2016 2015

Adjusted access equipment segment operatingincome (non-GAAP) 73.0$ 59.0$ 291.2$ 409.5$

Long-lived asset impairment charge (26.9) - (26.9) - Workforce reduction charges (0.9) (2.5) (0.9) (2.5) Access equipment segment operating income (GAAP) 45.2$ 56.5$ 263.4$ 407.0$

Adjusted operating income (non-GAAP) 123.3$ 89.5$ 391.8$ 398.1$ Long-lived asset impairment charge (26.9) - (26.9) - OPEB curtailment / settlement - - - 3.4 Workforce reduction charges (0.9) (2.9) (0.9) (2.9) Operating income (GAAP) 95.5$ 86.6$ 364.0$ 398.6$

Adjusted earnings per share-diluted (non-GAAP) 1.05$ 0.67$ 3.14$ 3.02$ Long-lived asset impairment charge, net of tax (0.22) - (0.22) - OPEB curtailment / settlement, net of tax - - - 0.03 Workforce reduction charges, net of tax (0.01) (0.03) (0.01) (0.03) Debt extinguishment costs, net of tax - - - (0.12) Earnings per share-diluted (GAAP) 0.82$ 0.64$ 2.91$ 2.90$

Three Months Ended Fiscal Year EndedSeptember 30, September 30,


Appendix: Commonly Used Acronyms

19November 1, 2016OSK Fourth Quarter 2016 Earnings Call

ARFF Aircraft Rescue and Firefighting LVSR Logistic Vehicle System ReplacementAWP Aerial Work Platform M-ATV MRAP All-Terrain VehicleAMPS Aftermarket Parts & Service 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 OCO Overseas Contingency OperationsEMD Engineering & Manufacturing Development OH OverheadEPS Diluted Earnings Per Share OI Operating IncomeFAST Act Fixing America’s Surface Transportation Act 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 KingdomLRIP Low Rate Initial Production ZR Zero Radius