8 23-16 invest m-nt conf august 16, 2016 investor handout

MOVING THE WORLD AT WORK

Oshkosh Corporation (NYSE:OSK)

Investor HandoutAugust 2016


Forward-Looking Statements

2August 2016Investor Handout

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 press release, 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 funding or paymentsthereof; the Company’s ability to utilize material and components which it has committed to purchase from suppliers; higher material costs resulting from production variability due to uncertainty of timing of payment 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 FMTV 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 thatmay 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; risksrelated 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 28, 2016. All forward-looking statements speak only as ofJuly 28, 2016. 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.


Why Oshkosh Corporation?


Defense , F&E and RCV+ Solid market outlook+ Strong backlogs+ JLTV ramp & Int’l M-ATVs+ Fire & Emergency and RCV share gains+ Improving OI margins

Access Equipment / Concrete Mixers+ Benefitting from construction growth- Cautious approach by customers- Soft replacement-driven access equipment

demand

OSK:A Different Integrated

Global Industrial

Expected FCF Provides Options+ Solid earnings+ Working capital reduction


Oshkosh Corporation –A Different Integrated Global Industrial

Technology leader supplying industry's top specialty vehicles& access equipment Serial innovator of game

changing new products Focused on delivering value to

customers and shareholders Leverage cross segment

expertise and resources

4

* - As of August 15, 2016

Access Equipment Defense

Fire & Emergency

August 2016Investor Handout

Fire & Emergency CommercialIncorporated 1917- Nearly 100 Yearsin Business

Market Cap* - $3.9 billion

OSK – NYSE ticker


MOVE Strategy Evolves to Drive Performance…

Focuses on drivers that create highest shareholder value Supports higher margin

targets through the cycle


…In FY16 and Beyond


Q3 FY16

Q3 FY16 EPS of $1.13

− Equal to Q3 FY15

Higher defense and fire & emergency segment sales

Higher operating income margin vs. prior year in defense, fire & emergency and commercial segments

Progress on funding and delivery schedules for the large international M-ATV order

Increased full year EPS outlook to range of $2.60 to $2.80

Net Sales(billions) EPS

6

$1.7 $1.6

$1.13 $1.13

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$0.0$0.2$0.4$0.6$0.8$1.0$1.2$1.4$1.6$1.8$2.0

FY16 FY15Net Sales EPS

OSK Fiscal Q3 Performance



DefenseReturning to Growth on a Strong Foundation

August 2016Investor Handout 7

Improved defense segment outlook− FY16 contract awards− FY17 budget request

JLTV ramp up gaining momentum− Production ramp up (FY17-19) quicker

than previous expectations New segment president –John Bryant − Ret. USMC colonel - 28 years experience− Led Oshkosh U.S. TWV programs

Continue to be active internationally − Working to deliver contract for M-ATVs

(~175 deliveries in FY16 and ~1,000 in FY17)− Pursuing multiple other opportunities


Access EquipmentPositive Long-Term Outlook Despite Near Term Challenges


Mixed global market conditions continue– North America market remains

cautious Lower replacement demand Rental companies selective with capital

expenditures– Solid activity in Europe– Brazil extremely depressed– Asia-Pacific growth and ongoing

impact of mining slowdown in Australia Challenging pricing environment Believe long-term trends are positive− Construction growth− Global product adoption− New applications for access

equipment


Fire & EmergencyImproving Execution Driving Market Leadership to New Heights


Continued modest market recovery Pierce gaining share in North America Improved municipal spending Large city fleet replacement

Revolutionary Ascendant™ two-axle aerial ladder truck continues to gain momentum– Three new variants launched at FDIC− Contributing to share gains

Raising production rate in FY16 Leveraging improved operational

performance Increased production rate in Q2 Additional increase in Q4


CommercialStrong RCV Fleet Replenishment and New Product Launches


Continued solid RCV business− Replacement demand− Solid construction activity and improved

municipal tax receipts− Share gains

New lighter weight Meridian front end loader RCV driving excitement

Seasonal concrete mixer demand increase− Solid front discharge demand− Cautious rear discharge customers

Believe long-term concrete mixer dynamics are favorable− Increased construction activity− Recently passed highway bill

(FAST Act)− Fleets continue to age


Responsible Capital AllocationStrong Free Cash Flow Provides Options


Reinvesting in core business remains preferred option

Return of capital balanced with continued investments– Provides options for the

business– Over $1.0 billion returned to

shareholders over the past four years

– Dividend increased annually since reinstatement in November 2013 201.8

403.3

200.4100.1

50.7

53.1

41.9

$0

$100

$200

$300

$400

$500

FY13 FY14 FY15 FY16YTD*Share Repurchases Dividends

($ m

illio

ns)

Cash Returned to Shareholders

* Data current as of June 30, 2016

Capital Allocation Priorities


Updated Expectations for FY16

Additional expectations Corporate expenses of $150 - $155 million Tax rate of ~ 32% CapEx of ~ $100 million Free Cash Flow* ~ $400 million Assumes share count of ~ 74.5 million

Segment information

Revenues of ~ $6.0 to $6.1 billion Operating income of $340 million to $360 million EPS of $2.60 to $2.80

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

12

Increased full year EPS estimate range Added ~ 175 international M-ATVs in Q4 Improved F&E performance Reduced access equipment operating margin

expectations Increased incentive compensation expense Higher tax rate

Measure Access Equipment Defense Fire &

Emergency Commercial

Sales(billions) $2.9 to $2.95 ~$1.25 ~ $0.95 ~ $1.0

Operating Income Margin 9.5% - 9.75% ~ 7.75% ~ 6.75% ~ 7.0%



Going Forward with Oshkosh - Expectations

MOVE strategy evolves– Market leadership with a focus

on delighting customers– Margin improvement– Technology drives game-changing

new products– Compete vigorously for business

around the world

Defense to drive growth– JLTV award is historic, provides strong

foundation and visibility into future

– Demand for international M-ATVs

– Strong legacy programs

Manage costs during period of softer demand for Access Equipment

Continued improvement in Fire & Emergency and Commercial segments



For informationcontact:

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

14

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



Appendix: Consolidated Q3 Results

Sales impacted by: Higher defense, fire &

emergency and access equipment segment sales

EPS impacted by: Higher defense, fire &

emergency and commercial segment results

Lower share count

Lower access equipment segment results

Higher tax rate

Higher incentive compensation

Q3 Comments

(Dollars in millions, except per share amounts)

Third Quarter

Net Sales $1,747.5 $1,612.3% Change 8.4% (16.6)%

Operating Income $146.8 $136.6% Change 7.5% (22.1)%% Margin 8.4% 8.5%

EPS $1.13 $1.13% Change 0.0% (7.4)%

2016 2015



Net Sales $952.5 $932.6% Change 2.1% (10.3)%

Operating Income $122.1 $136.4% Change (10.4)% (18.2)%% Margin 12.8% 14.6%

Third Quarter

(Dollars in millions)

2016 2015

Appendix: Access Equipment

Sales impacted by: Higher volume in North America,

primarily telehandlers− Competitive pricing

Operating income impacted by:− Competitive pricing− Prior year reversal of accrued

incentive compensation expense Lower spending on engine

emissions standards changes Higher sales volume

Backlog down 5% vs. prior year to $375 million

Q3 Comments



Appendix: Defense

Sales impacted by: Higher FHTV volume

Operating income impacted by: Favorable product mix Contractual price increases Higher sales volume

Backlog up 88% vs. prior year to $2.3 billion

Q3 Comments

Net Sales $264.3 $194.2% Change 36.1% (58.7)%

Operating Income / (Loss) $19.1 $(7.1)

% Change 369.3% (137.0)%% Margin 7.2% (3.7)%

Third Quarter


2016 2015



Net Sales $248.5 $199.8% Change 24.4% 6.6%

Operating Income $19.7 $9.6% Change 105.0% 55.5%% Margin 7.9% 4.8%

Third Quarter


2016 2015

Appendix: Fire & Emergency

Sales impacted by: Higher Pierce fire truck volume

Operating income impacted by: Higher sales volume Improved pricing

Backlog up 12% vs. prior year to $853 million

Q3 Comments



Appendix: Commercial

Sales impacted by:− Lower international RCV volume

Operating income impacted by: Improved product mix

Backlog down 5% vs. prior year to $206 million

Q3 Comments

Net Sales $287.9 $294.0% Change (2.1)% 18.9%

Operating Income $23.8 $22.4% Change 6.2% 12.9%% Margin 8.3% 7.6%

Third Quarter


2016 2015



Appendix: Commonly Used Acronyms


ARFF Aircraft Rescue and Firefighting M-ATV MRAP All-Terrain VehicleAWP Aerial Work Platform MRAP Mine Resistant Ambush ProtectedAMPS Aftermarket parts & service MSVS Medium Support Vehicle System (Canada)CapEx Capital Expenditures NOL Net Operating LossCNG Compressed Natural Gas NPD New Product DevelopmentDGE Diesel Gallon Equivalent NRC National Rental CompanyDoD Department of Defense OCO Overseas Contingency OperationsEAME Europe, Africa & Middle East OH OverheadEMD Engineering & Manufacturing Development OI Operating IncomeEPS Diluted Earnings Per Share OOS Oshkosh Operating SystemFAST Act Fixing America’s Surface Transportation Act OPEB Other Post-Employment BenefitsFHTV Family of Heavy Tactical Vehicles PLS Palletized Load SystemFMS Foreign Military Sales PUC Pierce Ultimate ConfigurationFMTV Family of Medium Tactical Vehicles R&D Research & DevelopmentGAAP U.S. Generally Accepted Accounting Principles RCV Refuse Collection VehicleGAO Government Accountability Office RFP Request for ProposalHEMTT Heavy Expanded Mobility Tactical Truck ROW Rest of WorldHET Heavy Equipment Transporter SMP Standard Military Pattern (Canadian MSVS)HMMWV High Mobility Multi-Purpose Wheeled Vehicle TACOM Tank-automotive and Armaments CommandIRC Independent Rental Company TDP Technical Data PackageIT Information Technology TPV Tactical Protector VehicleJLTV Joint Light Tactical Vehicle TWV Tactical Wheeled VehicleJPO Joint Program Office UCA Undefinitized Contract ActionJROC Joint Requirements Oversight Council UIK Underbody Improvement Kit (for M-ATV)JUONS Joint Urgent Operational Needs Statement UK United KingdomL-ATV Light Combat Tactical All-Terrain Vehicle ZR Zero Radius

LVSR Logistic Vehicle System Replacement



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 2016Expectations

Net cash flows provided by operating activities $ 500.0 Additions to property, plant and equipment (100.0)Free cash flow $ 400.0

8 23-16 invest m-nt conf august 16, 2016 investor handout

Investor Relations

Transcript of 8 23-16 invest m-nt conf august 16, 2016 investor handout