Sr. Vice President, Finance Vice President, Investor...

ISI Industrial ConferenceMarch 3, 2009

Tom PolnaszekSr. Vice President, Financeand Controller

Pat DavidsonVice President, Investor Relations

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Forward Looking StatementsOur remarks that follow, including answers to your questions and these slides, include statements that we believe are “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 consequences of financial leverage associated with the JLG acquisition, especially given turmoil in the credit markets, the level of the Company’s borrowing costs and the Company’s ability to successfully amend its credit agreement to provide financial covenant relief; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a global recession and credit crisis; the Company’s ability to obtain cost reductions on steel and other raw materials following sharp cost increases in 2008, obtain other cost decreases or achieve product selling price increases; the duration of the global recession and its adverse impact on the Company’s share price, which could lead to impairment charges related to many of the Company’s intangible assets; the expected level and timing of U.S. Department of Defense procurement of products and services and funding thereof; risks related to reductions in government expenditures and the uncertainty of government contracts; risks associated with international operations and sales, including foreign currency fluctuations; the Company’s ability to turn around its Geesink business; risks related to the collectibility of receivables during a recession, especially access equipment receivables; and the potential for increased costs relating to compliance with changes in laws and regulations. Additional information concerning these and other factors and assumptions is contained in our filings with the SEC, including our Form 8-K filed January 29, 2009. Except as set forth in such Form 8-K, we disclaim any obligation to update such forward-looking statements.

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Oshkosh: Global Leader in Specialty Vehicles

DefenseDefense Fire & EmergencyFire & Emergency CommercialCommercialAccess EquipmentAccess Equipment

Access Equipment$3.08 billion

Commercial$1.04 billion

Fire & Emergency$1.19 billion

Defense$1.89 billion

43%

14%

Portion of 2008 Sales

27% 16% 14%

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Oshkosh Revenues: A Strong Foundation

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Fiscal Year

$680M

$7.1BRevenues

($B)

24% CAGR

Organic CAGR 15% since 1997

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Increasing Global Footprint

FY06 FY08

Rest of World

6%

North America

72%

Europe, Africa, Middle East

22%

North America84%

Rest of World

3%

Europe, Africa, Middle East

13%

Stronger International Revenues

$3.4 billion $7.1 billion

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Wreckers & Carriers

Heavy Defense Trucks (Army & Marines)

Medium Defense Trucks (Marines)

Airport Products

Concrete Mixers/Batch Plants

Aerial Work Platforms / Telehandlers

Refuse Truck Bodies

Fire Apparatus

Leader In Our Markets

#1

#1

#1

#1

#1

#1

#1

N O R T H A M E R I C A R A N K

G L O B A L R A N K

Strong brands value creation

#2

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Innovative Products and TechnologiesBringing game changing technologies to mature markets

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Outstanding Service and Quality■

Oshkosh means premium products, support and the best value

■

Products backed by our 24/7/365 Global Service Network

■

Customer outreach captures ‘Voice of the Customer’

■

Global benchmarking of world class organizations

■

Focusing on Lean Operations–

Continuous process and quality improvement

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Oshkosh Fiscal Q1 2009 Results

■

Sales decreased 7.6% to $1.39 billion

■

Net loss of $20.6 million

■

Strong free cash flow

–

$260.8 million cash on hand at quarter end

–

$81.5 million of debt reduction

■

Inventory reduced by $61 million over prior year

■

Compliant with financial covenants

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Recent Conditions – Strength for Some, Soft & Uncertain for Others

■

A few core businesses remain strong:

–

Defense: Strong backlog, multiple new business opportunities

–

Fire apparatus/airport products: Significant market share gains; full backlog for fiscal 2009

–

Domestic refuse vehicles: Strong backlog and Q1 orders

■

While all other businesses remained weak or deteriorated further in Q1:

–

Access equipment, concrete mixer and towing equipment orders fell more sharply than expected in Q1

–

Lack of available credit, volatile currencies and general economic uncertainty are limiting demand and visibility

■

Impact of volatile currencies and commodity prices increasing margin volatility

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Oshkosh Response to Softer and Uncertain Market Conditions■

Further cost reduction actions

–

Workforce reduction of 7%, cumulative reduction of 17%

–

Reducing fiscal 2009 overhead and operating expenses by $50 million, cumulative reduction of more than $150 million since summer 2008

■

Reducing production to better match lower demand

■

Seeking credit agreement amendment in fiscal Q2

–

Launched discussion with banking group on February 18

–

Expect to execute amendment in March

–

Expect upfront fees and higher interest expense

–

Expect lower debt reduction in fiscal 2009

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Access Equipment

■

Competitive Advantages:–

Global leader in aerial work platforms–

Premium brand recognized for strong performance, technology and quality

–

Single-source solution provider–

Outstanding global distribution

■

Challenges:–

Soft construction markets; global spread of economic weakness

■

Our Actions:–

Reducing cost structure: staffing, supply chain and expenses

–

Rationalizing production schedules–

Leveraging strengths and relationships –

Going global for sales

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Fire & Emergency■

Competitive advantages:–

Innovation leader and #1 worldwide brand of fire and rescue apparatus

–

Leading market positions –

Outstanding reputation for design and safety innovations, as well as customer service and distribution

■

Challenges:–

Reduced tax receipts expected to lead to soft municipal spending environment

–

Economic weakness in North America and Europe

■

Our Actions:–

New products and stronger distribution leading to share gains

–

Lower cost structure; selected investments in growth opportunities

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Spotlight on Pierce Fire Apparatus

■

North American leader in fire truck technology–

Strongest product lineup–

Strongest dealer & service network–

Strongest value proposition

■

Winning new business with new products–

Velocity and Impel chassis–

PUC pumphouse

■

FDIC firefighter conference in

Indianapolis, April

■

Growing opportunities–

Military offerings -

HEWATT and TFFT–

Latin America, Middle East

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Spotlight on Airport Products

■

Two-pronged offering to customers–

Organic business developed by Oshkosh–

Engineering leadership and innovations–

Likely to benefit from stimulus package

■

ARFF -

Emergency response units for airports

–

Product features and performance lead the industry

–

Particular strength in Latin America and Middle East

■

H-Series snow removal–

Strong domestic sales–

Growing international sales–

Military replenishment

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Commercial■

Competitive Advantages:–

Market leader in refuse collection vehicles, concrete mixers and service vehicles

–

Extensive sales and service networks–

Large installed base provides strong aftermarket opportunities

–

Reduced emission CNG-powered vehicles

■

Challenges:–

Economic weakness across the globe–

Soft domestic concrete demand

■

Our Actions:–

Lowered cost structure; restructured European refuse operations

–

Serving market demands with new “green”

products (CNG-powered vehicles)

–

International expansion of concrete products

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Spotlight on McNeilus Refuse Collection Vehicles

■

North American leader in refuse collection vehicles (RCVs) and replacement parts

–

Strongest product lineup–

Total solution provider–

Best value proposition

■

Leader in the private segment

■

Growing municipal opportunities–

New York City

■

CNG providing a platform for growth–

Recent announcements in New York and Washington states–

Best-positioned OEM in domestic markets

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Defense■

Competitive advantages:–

Strong brand recognized for superior performance and reliability

–

Broad product line supported by

global service network

–

Innovations such as ProPulse®

and TAK-4®

–

Efficient and flexible manufacturing capacity■

Challenges:–

Funding for reset & recapitalization of equipment–

Margin pressure–

Capitalizing on new business opportunities■

Our Actions:–

Expanding armored vehicle and

component sales

–

Reinforcing leadership in heavy and

medium tactical vehicles

–

Competing for several U.S. and int’l programs

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Spotlight on Oshkosh Defense

■

Family of Heavy Tactical Vehicles (“FHTV”) for U.S. Army

■

All medium and heavy tactical vehicles for U.S. Marine Corps

■

Foreign military sales

■

Extensive reset and recapitalization activities, including in theater

■

Global parts and service access

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Defense Products: Cross-Company Opportunities

Fire & Emergency:Tactical Fire Fighting Truck

Access Equipment:Millennia Military Vehicle (MMV) and ATLAS II

Fire & Emergency:Flight Simulator

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Oshkosh: The Tactical Vehicle Innovator

■

ProPulse® hybrid-electric■

Diesel-electric drive■

Three-time DARPA Challenge finalist; autonomous vehicle races

■

Patented TAK-4® independent suspension

–

Next generation now available for light vehicles

■

Command Zone™

multiplexing technology

■

CMMI certified■

Patented transfer case

HEMTT A3 with ProPulse

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Axles-Under-MRAP Opportunity

■

Issue: 15,000+ unit MRAP fleet has limited off road capability/durability, especially for Afghanistan

■

Opportunity: Install TAK-4, and potentially other components to improve mobility, maneuverability, durability and payload capacity of significant portion of the current MRAP fleet

■

Status: Testing in cooperation with MRAP Joint Program Office

■

SOCOM also expressing interest

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Oshkosh MOshkosh M--ATVATV

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Survivable. Mobile. Mission proven.Production ready. Best value.

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M-ATV Program Summary■

A requirement for “off-road”

missions for the rough terrain of Afghanistan

■

Oshkosh offering is based on the rugged and durable MTVR–

Over 10,000 MTVRs produced to date–

TAK-4®

independent suspension with high ground clearance,

low center of gravity

–

Battle-proven in Afghanistan and Iraq; (70% off-road) mission profile

–

Plus Plasan’s proven crew protection capsule

■

Milestone dates for the program–

Feb 23, 2009 Vehicles delivered–

May 2009 Production contract awards–

Summer 2009 Production begins

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■Powerful leading brands■Strong defense, fire and domestic refuse vehicle backlogs■Aggressively attacking costs■Lower production volumes■Plans to obtain financial covenant relief■Pursuing new business opportunities

Moving Forward


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