[segment president] president – [segment name] · baird's 2016 industrial conference...

Baird’s 2016 Industrial Conference

November 9, 2016

Oshkosh Corporation (NYSE:OSK)

November 9, 2016 Baird's 2016 Industrial Conference 2

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 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. 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.

3

A different integrated global industrial

MOVE – Evolving to deliver more value

Positioned for long-term success

Oshkosh Corporation Key Messages

November 9, 2016 Baird's 2016 Industrial Conference

Leading provider of

specialty vehicles

Nearly 100 years in business;

incorporated in 1917

Focused on delivering value to

customers and shareholders

Serial innovator of game-

changing new products

ACCESS EQUIPMENT DEFENSE FIRE & EMERGENCY COMMERCIAL

4

Moving the World at Work

Making a Difference


Oshkosh Corporation Profile – FY16

5

48% Access

Equipment 21%

Defense

15% Fire &

Emergency

16% Commercial

Revenue by Segment

76% United States

4% Other NA

14% EAME

6% Rest of World

Revenue by Geography

Revenue growth in Defense

and Fire & Emergency Segments

Delivering a stronger

international mix


Fire Apparatus

6

Concrete Mixers/Batch Plants

#1 Heavy Defense Trucks (Army & Marines)

Medium Defense Trucks (Army & Marines)

Light Defense Trucks (JLTV – beginning FY17)

Airport Products (Rescue and Firefighting & Snow Removal)

Aerial Work Platforms/Telehandlers

Refuse Collection Vehicles

Industry Leadership

Strong Brands Value Creation

Wreckers & Carriers

(1) Company estimates

NORTH AMERICA RANK (1)

#1

#1

#1

#1

#1

#1

#2

GLOBAL RANK (1)

#1

Baird's 2016 Industrial Conference November 9, 2016

7 November 9, 2016 Baird's 2016 Industrial Conference

Strong Execution in FY16

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

OSK Full Year Performance

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

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 million

in free cash flow*

A DIFFERENT INTEGRATED

GLOBAL INDUSTRIAL

Leveraging Our Unique Position

9

Diverse End

Markets

Leverage Best Attributes of Two Distinct Approaches

Integrated

Operations


Favorable and Diverse End Market Drivers

10

Defense recovery

– JLTV ramp-up

– Solid U.S. base program funding

– International opportunities

U.S. construction slowly

improving, though uneven – both

residential and non-residential

Municipal spending recovering

Aging fleets in multiple markets

Significant access

equipment product adoption

opportunities globally

– Despite current market challenges

Population growth

and urbanization

Mid single-digit FY16 to FY17 revenue growth –

despite Access Equipment Segment expected decline


Integrated Enterprise Approach Drives

Opportunity/Efficiency Across Business Segments

11

Global product development

Enterprise-wide operations

Global procurement and

supply chain

‒ Leverage scale of OSK

One Oshkosh culture

‒ People, Purpose, Performance

Take Advantage of Opportunities

Unavailable to Many Companies


MOVE – EVOLVING TO

DELIVER MORE VALUE

13

Grow profitably by maintaining intense focus on

customer experience

Optimize our costs and capital structure to provide

value for customers and shareholders

Lead in innovation over the product life cycle

Drive international growth in targeted geographies

Evolving to Deliver More Value


Market Leader Delighting Customers Grow profitably by maintaining intense focus on customer experience

14

Enhance customer experience by:

Increasing use of standard

processes and tools to drive

consistent customer experience

Providing total customer care

solutions over product life cycle

Expanding use of Advanced

Product Quality Planning

Utilizing Voice of Customer to deliver

superior products and solutions


15

Targeting ~$55 million yr/yr cost

reduction in FY17

Build on current practices for

product, process and overhead

improvements

‒ Component commonality

‒ Supply chain optimization

‒ Weight reduction

Incrementally improve margins

independent of volume through

simplification actions


Optimize Cost and Capital Structure Optimize our costs and capital structure to provide value for customers and shareholders

Value Innovation Target 15 - 20% annual revenue(1) from new products in FY17

Continue innovation leadership

Further development of

value/global products

Leverage benefits of multi-

generational product and

technology plans

(1) Revenues from new products tracked through the first 24 months following the initial sale for all new products and new product development projects

Next generation protection and mobility

JLTV

Game-changing 107 foot two-axle aerial

Ascendant TM Aerial Ladder

Balances high payload,

low body weight

JLG 1500AJP Articulating Boom Lift

World’s tallest articulating

boom lift

Meridian Front-end Loader RCV


24%

0%

10%

20%

30%

40%

50%

FY16 FY17E

% of OSK Sales Outside U.S.

Emerging Market Growth

17

Drive international growth in targeted geographies

~15% - 20% increase in international sales

– From $1.5 billion in FY16 to an estimated $1.75

billion in FY17

– Driving international to 25% - 30% of OSK sales

Growth driven by Defense and Access

Equipment

Expanding our reach across the globe

(1)

25% - 30%


24%

BUSINESS SEGMENT

OVERVIEW

Access Equipment Summary Targeting higher operating income margins

across the cycle

Global leader in access equipment

Focused strategy built on simplifying

the business, continuing to lead in

innovation and expanding aftermarket

parts and services

Well positioned for long-term global

success as near-term headwind of

replacement demand cycle becomes

a tailwind and product adoption grows


Current North America Fleet Replacement Demand Negatively impacted by low sales during last recession…

(1) Rouse Services: Age composition of Access Equipment of “Rouse 8” fleets in North America as of 6/30/2016

… Believe Becomes a Demand Driver in Future Years

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2016Partial

2015201420132012201120102009

Model Year of Fleet

Composition of Rental Fleet in 2016 as Percent of Total Units(1)

Current

Headwind


(1) Company estimates

Defense Segment Summary Targeting high single-digit operating income margins

over the next few years

#1 provider of light, medium, MRAP and

heavy tactical wheeled vehicles in the world(1)

Winning strategy based on breakthrough

technologies, operational agility, life cycle

value and defense expertise that delivers

exceptional technical, operational and

economic value for our military customers

Solid budget visibility for the multi-year,

multi-billion dollar U.S. JLTV program,

as well as international market potential


Joint Light Tactical Vehicle (JLTV) U.S. JLTV Production

Contract Overview

~$6.7 billion

Base award plus 8 order years

Program scope includes:

– 4 Mission Package Configurations

– Mission Kits

– Interim Contractor Support (ICS)

– Total Package Fielding (TPF)

– System Technical Support (STS)

– Technical Data Package

Quantity: 18,000+ vehicles(1)

– Vehicle deliveries expected through 2024


Utility

2 D

oo

r 4

Do

or

General Purpose Close Combat

Weapons Carrier

Heavy Guns Carrier Future Variants

(1) Source: FY17 U.S. President’s Budget

Fire & Emergency Segment Summary Targeting double-digit operating income

margins in the near term

Leader in U.S. fire truck and global airport

products(1) with industry-leading brands,

products and distribution network

Strategy focused on operational excellence,

simplification and continuing to lead

in innovation

Aging fleets, technological changes and

steady growth in municipal demand support

solid outlook

(1) Aircraft Rescue and Firefighting (ARFF) and Snow Removal

23 Baird's 2016 Industrial Conference November 9, 2016

24

Housing prices and local property taxes have continued to recover

Aging fleets coupled with improving state and local tax receipts have led

to steady growth in municipal demand

Domestic Fire Truck Market Drivers Gaining Momentum


Increasing Home Prices and Property Taxes

1990 1995 2000 2005 2010 2015

25 November 9, 2016

Targeting 10% operating income margins over time

Differentiated leader in North American

refuse collection vehicle and concrete mixer

markets with broad product lineup,

operational scale and well-respected brands

Strategy focused on innovation,

simplification and supporting customers

through the product life cycle

Promising market fundamentals and

elevated customer fleet ages drive

performance opportunities

Baird's 2016 Industrial Conference

Commercial Segment Summary

Concrete mixers

Fleet age is high; ~10 years

Customers are cautious near term

North American rear discharge

concrete mixer market still below

(~25%) long-term average

Home ownership at lowest level

in 50 years

RCVs

Large operator fleet age >8 years2

Share growth past 2 years

Fleet volumes growing due to

increase in waste generation

Solid municipal funding as tax

receipts rebound

Expect waste hauling market

consolidation to continue

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Average concrete mixer fleet age¹

Average fleet age in years

26

Concrete Mixers and Refuse Collection Vehicles Aged fleets positively correlated with housing and waste generation


(1) Source: 2001-2014 Truck Mixer Manufacturing Bureau (TMMB)

(2) Estimates based on publicly traded refuse company information and OSK internal estimates

(3) Refuse Collection Vehicles 2005 – 2015 WASTEC, single-family housing starts as reported by IHS

-60%

-40%

-20%

0%

20%

40%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

U.S

. R

CV

ma

rke

t Y

OY

Ch

an

ge

U.S. refuse collection vehicles and single-family housing starts YOY change³

RCV domestic market YOY Change

Single Family Housing Starts YOY change

Sin

gle

-fam

ily h

ou

sin

g s

tarts

YO

Y c

ha

ng

e

CAPITAL ALLOCATION AND

FINANCIAL OUTLOOK

Baird's 2016 Industrial Conference 28

Responsible Capital Allocation Strategy

Long-term

targeted capital

structure

Drives

sales and

EPS growth

Reinvest in core

business

Invest in external

growth (M&A)

Return cash to

shareholders

Reduce debt

Hold cash

Debt to

EBITDA

target ~2.0X

Opportunistic

levers to

drive additional

shareholder

value

November 9, 2016

FY17 Estimates

29

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 RCV 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(1) 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 Income

Margin 7.75% - 8.5% ~9.5% ~8.5% ~6.75%


(1) Non-GAAP results. See appendix for reconciliation to GAAP results.

POSITIONED FOR

LONG-TERM SUCCESS

Positive Long-term Outlook Convergence of favorable market dynamics and

benefits of MOVE position OSK to deliver strong results


Favorable market dynamics

‒ JLTV provides multi-year visibility

for Defense

‒ Current access equipment

replacement demand headwind

becomes future tailwind

‒ Fleet ages help to drive Fire &

Emergency and Commercial

Segment demand

MOVE strategy will continue to

drive results

Expected strong free cash flow

over the cycle provides capital

allocation alternatives

A Different Integrated Global Industrial Company

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]

Appendix

Appendix: Consolidated Results

Sales impacted by:

Higher defense and F&E sales

offset lower access equipment

sales

EPS impacted by:

Lower average share count

Higher defense and F&E

segment operating income

− Lower access equipment

segment operating income

− Higher corporate expenses

Comments

(Dollars in millions, except per share amounts)

Full Year

Net Sales $6,279.2 $6,098.1

% Change 3.0% (10.4)%

Adjusted Operating

Income* $391.8 $398.1

% Change (1.6)% (22.3)%

% Margin 6.2% 6.5%

Adjusted EPS* $3.14 $3.02

% Change 4.0% (16.6)%

2016 2015



Net Sales $3,012.4 $3,400.6

% Change (11.4)% (3.0)%

Adjusted

Operating Income* $291.2 $409.5

% Change (28.9)% (18.3)%

% Margin 9.7% 12.0%

Full Year

(Dollars in millions)

2016 2015

Appendix: Access Equipment

Sales impacted by:

− Lower volume, primarily in

Americas, partially offset by

growth in EMEA & China

− Competitive pricing

Operating income impacted by:

− Lower sales volume

− Competitive pricing

Lower spending on engine

emissions standards changes

Backlog down 14% vs. prior

year to $179 million

Comments



Appendix: Defense

Sales impacted by:

Higher international M-ATV

volume

Higher FHTV volume

− Lower FMTV volume


Higher sales volume

Favorable product mix

Contractual price increases

Backlog up 65% vs. prior year

to $2.3 billion(2)

Comments

Net Sales $1,351.1 $939.8

% Change 43.8% (45.5)%

Adjusted

Operating Income $122.5 $5.8(1)

% Change 1,983.1% (93.1)%

% Margin 9.1% 0.6%

Full Year


2016 2015


(1) Non-GAAP results. See appendix for reconciliation to GAAP results.

(2) Includes $380 million of FMTV orders under protest

Net Sales $953.3 $815.1

% Change 16.9% 7.8%

Operating Income $67.0 $43.8

% Change 53.1% 64.5%

% Margin 7.0% 5.4%

Full Year


2016 2015

Appendix: Fire & Emergency

Sales impacted by:

Higher fire truck volume

Favorable pricing

Improved operational efficiency


Higher sales volume

Favorable pricing

Improved operational efficiency

Backlog up 8% vs. prior year to

$853 million

Comments


Appendix: Commercial

Sales impacted by:

Higher RCV volume

Lower field service truck and

truck mounted crane volume


Favorable mix

Production inefficiencies

MOVE investments

Backlog down 10% vs. prior

year to $173 million

Comments

Net Sales $979.2 $978.0

% Change 0.1% 12.9%

Operating Income $67.6 $64.5

% Change 4.8% 19.7%

% Margin 6.9% 6.6%

Full Year


2016 2015



Appendix: Commonly Used Acronyms ARFF Aircraft Rescue and Firefighting LVSR Logistic Vehicle System Replacement

AWP Aerial Work Platform M-ATV MRAP All-Terrain Vehicle

AMPS Aftermarket parts & service MRAP Mine Resistant Ambush Protected

C4ISR Command, Control, Communications, Computers, Intelligence,

Surveillance and Reconnaissance MSVS Medium Support Vehicle System (Canada)

CAGR Compound Annual Growth Rate NOL Net Operating Loss

CapEx Capital Expenditures NPD New Product Development

DCS Direct Commercial Sales NRC National Rental Company

DoD Department of Defense OCO Overseas Contingency Operations

EMEA Europe, Middle East & Africa OH Overhead

EMD Engineering & Manufacturing Development OI Operating Income

EPS Diluted Earnings Per Share OOS Oshkosh Operating System

FAST Act Fixing America’s Surface Transportation Act OPEB Other Post-Employment Benefits

FHTV Family of Heavy Tactical Vehicles PLS Palletized Load System

FMS Foreign Military Sales PUC Pierce Ultimate Configuration

FMTV Family of Medium Tactical Vehicles R&D Research & Development

GAAP U.S. Generally Accepted Accounting Principles RCV Refuse Collection Vehicle

GAO Government Accountability Office RFP Request for Proposal

HEMTT Heavy Expanded Mobility Tactical Truck ROW Rest of World

HET Heavy Equipment Transporter SMP Standard Military Pattern (Canadian MSVS)

HMMWV High Mobility Multi-Purpose Wheeled Vehicle TACOM Tank-automotive and Armaments Command

IRC Independent Rental Company TDP Technical Data Package

IT Information Technology TMH Telescopic Material Handler

JLTV Joint Light Tactical Vehicle TWV Tactical Wheeled Vehicle

JPO Joint Program Office UCA Undefinitized Contract Action

JROC Joint Requirements Oversight Council UIK Underbody Improvement Kit (for M-ATV)

JUONS Joint Urgent Operational Needs Statement UK United Kingdom

L-ATV Light Combat Tactical 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):

Fiscal Year Ended

September 30,

2016 2015

Adjusted operating income (non-GAAP) $ 391.8 $ 398.1

Long-lived asset impairment charge (26.9) -

OPEB curtailment/settlement - 3.4

Workforce reduction charges (0.9) (2.9)

Operating income (GAAP) $ 364.0 $ 398.6

Adjusted access equipment segment operating

income (non-GAAP) $ 291.2 $ 409.5

Long-lived asset impairment charge (26.9) -

Workforce reduction charges (0.9) (2.5)

Access equipment segment operating income (GAAP) $ 263.4 $ 407.0

Adjusted defense operating income (non-GAAP) $ 5.8

Pension and OPEB curtailment/settlement 3.4

Defense segment operating income (GAAP) $ 9.2

Fiscal Year Ended,

September 30,

2016 2015

Adjusted earnings per share - diluted (non-GAAP) $ 3.14 $ 3.02

Long-lived asset impairment charge, net of tax (0.22) -

OPEB curtailment/settlement, net of tax - 0.03

Workforce reduction charges, net of tax (0.01) (0.03)

Debt extinguishment costs, net of tax - (0.12)

Earnings per share - diluted (GAAP) $ 2.91 $ 2.90


The table below presents a reconciliation of the Company’s presented non-GAAP measures

to the most directly comparable GAAP measures (in millions):

Appendix: Non-GAAP to GAAP Reconciliation

Fiscal 2016

Net cash flows provided by operating activities $ 577.7

Additions to property, plant and equipment (92.5)

Additions to equipment held for rental (34.8)

Proceeds from sale of equipment held for rental 40.2

Free cash flow $ 490.6

Fiscal 2017 Expectations

Low High

Net 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

[segment president] president – [segment name] · baird's 2016 industrial conference...

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