Oshkosh Oshkosh Corporation Corporation
Investor Presentation Investor Presentation
September 2013 September 2013
OSK Investor Slides September 2013
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Oshkosh Oshkosh Corporation Corporation Investor Presentation Investor Presentation September 2013 September 2013 OSK Investor Slides September 2013 Forward-Looking Statements This presentation contains statements that the Company
OSK Investor Slides September 2013
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, , g g p y p , gy, g , p j , , 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
state e ts ese acto s c ude t e cyc ca atu e o t e Co pa y s access equ p e t, co e c a a d e & e e ge cy markets, especially in the current environment where there are conflicting signs regarding the global economic outlook and the ability of the U.S. government to resolve budgetary and debt issues; the expected level and timing of the DoD 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 the significant projected decrease in sales levels in the defense segment; 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 consolidation and and other raw material costs, particularly in a sustained economic recovery; risks related to facilities consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; the duration of the ongoing global economic weakness, 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 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; 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, 2013. All forward-looking statements speak only as of July 30, 2013. The Company assumes no obligation, and disclaims any
such information until the Company’s next quarterly earnings conference call if at all
OSK Investor Slides September 2013
such information until the Company s next quarterly earnings conference call, if at all.
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Solid non-defense growth largely offset anticipated defense decline
St th d it l d f Strong growth despite lower defense revenue
Consistent generator of strong FCF
OSK Investor Slides September 2013
(1) Non-GAAP results. See Appendix for reconciliation to GAAP results. (2) As of August 30, 2013.
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OSK Investor Slides September 2013
(1) Expected benefits of market recovery captured in financial estimates vs. September 2012 Analyst Day estimate of FY12. Does not include benefits of other MOVE initiatives. (2) Net of investment costs and compared with consolidated FY11 operating income margins. (3) Compared with FY12.
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Industry Leading Brands Industry Leading Brands (1)
(1)
Access Equipment #1 Global # G Fire Apparatus #1 Global Airport Products #1 Global Defense TWV (2) #1 Global Concrete Mixers #1 Americas Refuse Collection #1 Americas
(1) Based on Company estimates.
(2) Oshkosh Defense is the leading supplier of heavy and medium tactical wheeled vehicles for the U.S. Armed Services.
– Powered by Oshkosh Operating System
OSK Investor Slides September 2013 * Non-GAAP results. See Appendix for reconciliation to GAAP results.
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Global Leader in Access Equipment Global Market Presence Industry Leading Innovation Flexible Manufacturing and Supply Innovation Superior P d t R Full Spectrum Parts Service pp y Chain Product Range Parts, Service, and Support
OSK Investor Slides September 2013
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Total Construction Spending (Y-O-Y % Change) NA Rental Equipment Access - Fleet Age (AWP and TMH)
60
10 20
(% Change)
45 50 55
(Age in Months)
‐10 10
C NA Rental Equipment Company CapEx
Source: IHS Global data/projections, August, 2013 Source: Rouse Rental Report. Calendar year-end data for 2009-12
40 2009 2010 2011 2012
Age (months)‐20 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E United States Canada
NA Rental Equipment Company Fleet Utilization NA Rental Equipment Company CapEx (Y-O-Y % Change)
zation) e)
60 90 120 150 65 70 75
(% Time Utiliz (% Chang
‐90 ‐60 ‐30 30 2004 2005 2006 2007 2008 2009 2010 2011 2012 50 55 60 Q ' 1 Q ' 1 Q ' 1 Q ' 1 Q ' 1 1 Q ' 1 1 Q ' 1 1 Q ' 1 1 Q ' 1 2 Q ' 1 2 Q ' 1 2 Q ' 1 2 Q ' 1 3 Q ' 1 3 OSK Investor Slides September 2013
Based on International Rental News/Dan Kaplan sample of medium to large NA rental equipment companies (United Rental, RSC, H&E, HERC). Based on International Rental News/Dan Kaplan sample of medium to large NA rental equipment companies (United Rental, RSC, HERC, Ameco, Neff).
2004 2005 2006 2007 2008 2009 2010 2011 2012
CapEx 7
1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q
AWP – Articulating Boom 51.7
Average Age (in months) Recent Used Equipment Value Trends (OLV)
39.7% 43.2%
35.0 40.0 45.0
OLV (% of Cost)
AWP – Scissor Lifts 54.8
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July
O
38.4% 44.0%
35.0 40.0 45.0 Jul ug ep Oct
ec an eb ar Apr ay ne uly
OLV (% of Cost)
S R A t S i A t 2013
AWP – Telescopic Boom 55.3
J Au Se O No De Ja Fe M A Ma Jun Ju
30.9% 31.7%
30.0 32.5 35.0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July
OLV (% of Cost)
Source: Rouse Asset Services, August 2013.
U.S. Housing Starts Seasonally Adjusted Rate 2013 2012 Change July 896 000 741 000 +20 9% July 896,000 741,000 +20.9%
Source: U.S. Census Bureau, August 2013.
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Defense Engineering & Product Development Service, Lifecycle Sustainment Scalable Manufacturing & Operations Vehicle Fleet Modernization Vertical Integration of Specialized Components Defense Program Management
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Innovation #1 B d
Leader #1 Brands Premier Distribution and Service Unrivaled Product Performance
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Recent Headlines
HOUSING PRICES & LOCAL PROPERTY TAXES
New Home Sales Hit Five- Year High, Prices Soar
Construction Spending in U.S. Rises, Led By Residential Projects
Bloomberg, July 1, 2013
Apocalypse, Not Now, for Municipal Bonds
B ’ A il 23 2013
OSK Investor Slides September 2013
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Broadest Product Line Best in Class Aftermarket Service and Support
Refuse collection vehicle product line
Direct Distribution, Customer Intimacy Innovation and New Product Development Scalable, Flexible Manufacturing & O ti Access to Technology, Alternative Fuels
Integrated factory
& Operations Fuels Leadership
OSK Investor Slides September 2013
Alternative fuel technology
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U.S. Housing Starts Forecast
8,000 10,000 12,000 2,000 2,500
M
000s)
1 6 1.8 2.0 2.2 2.4 in millions)
4,000 6,000 500 1,000 1,500
Mixer Units Shippe
Housing Starts (0
0.8 1.0 1.2 1.4 1.6 sing Starts (units
2,000 500
ed Housing Starts Mixer Units Shipped
0.6 2012 2013E 2014E 2015E 2016E Hous
Moodys Portland Cement Association Global Insight Average Analyst Estimate
1.4 million in FY15
OSK Investor Slides September 2013
July 2013 U.S. housing starts at 896,000
14 Sources: Housing Starts - U.S. Census Bureau. Mixer Shipments - Truck Mixer Manufacturers Bureau; U.S. and Canada.
– Nearly double Q3 FY12
y – Access equipment and defense segments led the way
les
ns)
E
$2,204 $2,160 $1.67 $1.25 $1.50 $1.75 $2.00 $1 500 $2,000 $2,500
Net Sa
(million
EPS
$0.84 $0.50 $0.75 $1.00 $1.25 $500 $1,000 $1,500
– 5.4 million shares YTD
$0.00 $0.25 $0 FY13 FY12 Net Sales EPS
– $3.60 to $3.70
OSK Investor Slides September 2013
15 * Continuing operations only. * * FY13 expectations exclude certain non-GAAP adjustments (see Appendix).
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Sales (billions) ~$3.1 ~$3.1 Nearly $0.8 $0.72 - $0.75 Operating 12 0%-12 25% ~7 5% 2 0%-2 5% 4 5%-5 0%
Income Margin 12.0%-12.25% 7.5% 2.0%-2.5% 4.5%-5.0%
j (higher share-based compensation and IT investments vs. FY12)
year due to seasonality and defense sales decline.
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* FY13 expectations reflect certain non-GAAP adjustments (see Appendix). ** Excludes impact of any additional share repurchases in Q4.
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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 (920) 233-9406 jwatt@oshkoshcorp.com
OSK Investor Slides September 2013
(Dollars in millions)
(Dollars in millions)
Higher volume in North America Price realization
Price realization Higher aftermarket volume Lower volume in Australia
Price realization Product and process cost reduction Product mix
prior year to $621 million
Mostly due to lower military backlog
OSK Investor Slides September 2013
bac og
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(Dollars in millions)
( )
Lower U.S. DoD volume International truck shipments
Higher international sales mix
Finalization of UCA pricing Operational efficiencies
OSK Investor Slides September 2013
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(Dollars in millions)
( )
Lower unit volumes
L b ti
Lower absorption Price realization
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* Continuing operations only.
(Dollars in millions)
( )
+ Higher concrete mixer sales + Higher content units
Lower RCV sales
Restructuring related t
costs
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ARFF Aircraft Rescue and Firefighting M-ATV MRAP All-Terrain Vehicle AWP Aerial Work Platform MECV Modernized Expanded Capability Vehicle CapEx Capital Expenditures MRAP Mine Resistant Ambush Protected CNG Compressed Natural Gas MSVS Medium Support Vehicle System (Canada) DoD Department of Defense NPD New Product Development EAME Europe, Africa & Middle East NOL Net Operating Loss EMD Engineering & Manufacturing Development OI Operating Income EPS Diluted Earnings Per Share PLS Palletized Load System FHTV Family of Heavy Tactical Vehicles PUC Pierce Ultimate Configuration FMS Foreign Military Sales R&D Research & Development FMTV Family of Medium Tactical Vehicles RCV Refuse Collection Vehicle HEMTT Heavy Expanded Mobility Tactical Truck RFP Request for Proposal HET Heavy Equipment Transporter ROW Rest of World HMMWV High Mobility Multi-Purpose Wheeled Vehicle 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 TFFT Tactical Fire Fighting Truck JROC Joint Requirements Oversight Council TPV Tactical Protector Vehicle JUONS Joint Urgent Operational Needs Statement TWV Tactical Wheeled Vehicle
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L-ATV Light Combat Tactical All-Terrain Vehicle UCA Undefinitized Contract Action LVSR Logistic Vehicle System Replacement UIK Underbody Improvement Kit (for M-ATV)
most directly comparable GAAP measures (in millions, except per share amounts):
Fiscal 2013 Expectations p Corporate Non-GAAP operating expenses (145.0) $ Tender offer and proxy contest costs (16.3) GAAP operating expenses (161.3) $ Low High Consolidated Non-GAAP operating income 515.0 $ 525.0 $ Tender offer and proxy contest costs (16.3) (16.3)
Fiscal 2013 Expectations
GAAP operating income 498.7 $ 508.7 $ Non-GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 3.60 $ 3.70 $ Tender offer and proxy contest costs, net of tax (0.11) (0.11) GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 3.49 $ 3.59 $ Net cash flows provided by operating activities 335.0 $ 360.0 $ Additions to property, plant and equipment (45.0) (45.0)
OSK Investor Slides September 2013
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Additions to equipment held for rental (19.0) (19.0) Proceeds from sale of equipment held for rental 4.0 4.0 Free cash flow 275.0 $ 300.0 $
most directly comparable GAAP measures (in millions, except per share amounts):
2013 2012 Non-GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 3.23 $ 1.66 $ Nine Months Ended June 30, Tender offer and proxy contest costs, net of tax (0.11) (0.05) Discrete tax benefits
GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 3.12 $ 1.76 $ 2013 2012 Nine Months Ended June 30, Net cash flows provided by operating activities 247.5 $ 74.3 $ Additions to property, plant and equipment (25.2) (33.9) Additions to equipment held for rental (13.1) (5.9) Proceeds from sale of equipment held for rental 6.9 3.2 Free cash flow 216.1 $ 37.7 $
OSK Investor Slides September 2013
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