MOVING THE WORLD AT WORK
Oshkosh Corporation
(NYSE:OSK)
2015 Annual Shareholders’ Meeting
February 3, 2015
Oshkosh Corporation (NYSE:OSK) 2015 Annual Shareholders Meeting - - PowerPoint PPT Presentation
MOVING THE WORLD AT WORK Oshkosh Corporation (NYSE:OSK) 2015 Annual Shareholders Meeting February 3, 2015 Forward-Looking Statements This presentation contains statements that the Company believes to be forward-looking statements
February 3, 2015
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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
“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 strength of emerging market growth and projected adoption rates of work at height machinery; 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 U.S. JLTV production contract award and international defense contract awards; 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; 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 foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; the Company’s ability to comply with complex laws and regulations applicable to U.S. government contractors; the impact of severe weather or natural disasters that may affect the Company, its suppliers or its customers; cyber security 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 January 27, 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.
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Source: NYSE March 29,1996 to December 31, 2014
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500 1,000 1,500 2,000 2,500 3,000 3,500 Mar-96 Sep-96 Mar-97 Sep-97 Mar-98 Sep-98 Mar-99 Sep-99 Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Total Return (%) OSK S&P 500 BRK.A GD TDY
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$6.8 $7.7 $3.62 $3.74 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 FY14 FY13
Net Sales Adjusted EPS*
Net Sales
(billions)
Adjusted EPS*
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
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$0.0 $2.0 $4.0 $6.0 $8.0 $10.0
Net Sales
FY12 FY13 FY14
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$0.0 $2.0 $4.0 $6.0
Net Sales
FY12 FY13 FY14
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* Non-GAAP results. See Appendix for reconciliation to GAAP results.
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$0 $100 $200 $300 $400 $500 $600 $700 Non-Defense Operating Income*
FY12 FY13 FY14
$0 $100 $200 $300 $400 $500 $600 $700 Adjusted Operating Income**
FY12 FY13 FY14
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(1) Total shareholder return P = Projected February 3, 2015 2015 Annual Shareholders' Meeting
70 75 80 85 90 95 09/30/12 09/30/13 09/30/14
(Shares in millions)
>12% Reduction
$0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 FY13 FY14 FY15(P)
13% Increase
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impact of aged fleets and growing UK market
in Australia
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Saber Chassis Enforcer Chassis
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(1) Compared with FY12 expectations as of September 2012 Analyst Day. (2) Net of investment costs and compared with consolidated FY11 operating income margins.
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* Non-GAAP results. See Appendix for reconciliation to GAAP results.
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* Non-GAAP results. See Appendix for reconciliation to GAAP results.
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7.0% 7.5% ~ 8.0% 10.0%+
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
2013 2014 2015E Target
Consolidated Adjusted Operating Income Margin *
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
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Patrick N. Davidson Vice President, Investor Relations (920) 966-5939 pdavidson@oshkoshcorp.com Jeffrey D. Watt Director, Investor Relations (920) 233-9406 jwatt@oshkoshcorp.com
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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 OH Overhead EMD Engineering & Manufacturing Development OI Operating Income EPS Diluted Earnings Per Share OOS Oshkosh Operating System FHTV Family of Heavy Tactical Vehicles OPEB Other Post-Employment Benefits FMS Foreign Military Sales PLS Palletized Load System FMTV Family of Medium Tactical Vehicles PUC Pierce Ultimate Configuration GAAP U.S. Generally Accepted Accounting Principles R&D Research & Development HEMTT Heavy Expanded Mobility Tactical Truck RCV Refuse Collection Vehicle HET Heavy Equipment Transporter RFP Request for Proposal HMMWV High Mobility Multi-Purpose Wheeled Vehicle ROW Rest of World IRC Independent Rental Company SMP Standard Military Pattern (Canadian MSVS) IT Information Technology TACOM Tank-automotive and Armaments Command JLTV Joint Light Tactical Vehicle TDP Technical Data Package JPO Joint Program Office TPV Tactical Protector Vehicle JROC Joint Requirements Oversight Council TWV Tactical Wheeled Vehicle JUONS Joint Urgent Operational Needs Statement UCA Undefinitized Contract Action L-ATV Light Combat Tactical All-Terrain Vehicle UIK Underbody Improvement Kit (for M-ATV) LVSR Logistic Vehicle System Replacement UK United Kingdom M-ATV MRAP All-Terrain Vehicle
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comparable GAAP measures:
2014 2013 Adjusted earnings per share from continuing
3.62 $ 3.74 $ Reduction of valuation allowance on net
0.14
(0.08)
(0.08)
0.07
(0.06)
Intangible asset impairment charge, net of tax
Union contract ratification costs, net of tax
Earnings per share from continuing
3.61 $ 3.53 $ Low High Adjusted earnings per share from continuing
4.00 $ 4.25 $ Debt extinguishment costs, net of tax (0.11) (0.11) OPEB curtailment gain, net of tax 0.02 0.02 Earnings per share from continuing operations-diluted (GAAP) 3.91 $ 4.16 $ Fiscal 2015 Expectations Fiscal Year Ended September 30,
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comparable GAAP measures (in millions):
Fiscal Year Ended September 30, 2012 2013 2014 2015E Adjusted operating income (non-GAAP) $ 404.7 $ 534.8 $ 512.2 $ 525.0 Union contract ratification costs
(7.0)
(3.4)
3.4 Tender offer and proxy contest costs (6.6) (16.3)
$ 387.7 $ 505.7 $ 503.3 $ 528.4
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comparable GAAP measures:
2013 2014 2015E Consolidated operating income margins (non-GAAP) 7.0% 7.5% 8.0% Union contract ratification costs
6.6% 7.4% 8.0% Fiscal Year Ended September 30,
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comparable GAAP measures (in millions):
2012 2013 2014 Non-Defense Segment Sales 4,385.1 $ 4,680.1 $ 5,128.9 $ Defense Segment Sales 3,950.5 3,049.7 1,724.5 Intersegment eliminations (194.5) (64.7) (45.2) Consolidated Net Sales 8,141.1 $ 7,665.1 $ 6,808.2 $ 2012 2013 2014 Non-Defense Segment Operating Income 270.1 $ 444.7 $ 581.6 $ Defense Segment Operating Income 236.5 224.9 76.4 Corporate (119.1) (163.9) (154.7) Intersegment eliminations 0.2
387.7 $ 505.7 $ 503.3 $ Fiscal Year Ended September 30, Fiscal Year Ended September 30,