1. automotive and vehicles
2. vehicle rental

MOVING THE WORLD AT WORK
Charles L. Szews
Chief Executive Officer
Oshkosh Corporation
First Quarter Fiscal 2015
January 27, 2015
Wilson R. Jones
President and Chief Operating Officer
David M. Sagehorn
Executive Vice President
and Chief Financial Officer
Patrick N. Davidson
Vice President, Investor Relations
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; 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 today. 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.
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
2
Solid Start to FY15
 Adjusted EPS* of $0.41
OSK Fiscal Q1 Performance
$1.8
$0.75
$1.5
$1.6
 Strong orders and backlogs for
all non-defense segments
(billions)
Net Sales
$1.4
$1.2
$1.0
$0.50
$0.41
$0.8
$0.6
$0.25
$0.4
 Repurchased 1.9 million shares
for $88.1 million
$0.2
$0.0
$0.00
FY15
 Maintaining FY15 adjusted EPS*
estimate range of $4.00 to $4.25
despite negative FX impact
expected in Q2-Q4
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
*
$0.63
$1.4
Net Sales
FY14
Adjuste d EP S*
Non-GAAP results. See Appendix for reconciliation to GAAP results.
January 27, 2015
3
Adjusted EPS*
 Solid execution and timing of
MOVE related spend drove
higher than expected results
Defense
 Remain focused on efficient,
operational execution
 Driving toward mid February JLTV
production proposal submission date
− Expect decision on winning bidder
late Summer 2015
 Continue pursuit of meaningful
international opportunities
– M-ATVs
– Canadian MSVS Program
 FY15 DoD budget finalized in
December
− Positive funding results for OSK
programs
 Incremental OCO opportunities
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
4
Access Equipment
 Solid start to FY15
− Higher mix of telehandlers due to Tier 4
engine emissions standards changes
 Strong orders and backlog evidence
continued market strength
 Broad end market demand expected to
support FY15 outlook
– Customer sentiment in North America
remains positive
 Strong construction activity, despite energy
sector concerns
– Outlook remains mixed in other regions
 Building on FY14 MOVE success
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
5
Fire & Emergency
 Continued to execute operational
efficiency roadmap
− Q1 results better than expected
 New Enforcer and Saber chassis
driving customer demand
 Stable North American fire truck
market
– Modest market growth expected
in FY15
 Additional international success
− ARFF orders in Asia, Australia and
Latin America
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
6
Commercial
 Strong North American concrete
mixer market recovery over last
several years
− Driven by slowly improving
housing market
 RCV market picked up after a
down 2013
 Split-bin and automated RCV
models generating incremental
demand
 MOVE investments continue
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
7
Consolidated Results
(Dollars in millions, except per share amounts)
First Quarter
Net Sales
Comments
2015
2014
$1,353.3
$1,530.2
% Change
Adjusted
Operating Income*
(11.6)%
$62.3
(12.6)%
$96.5
% Change
(35.5)%
(0.1)%
% Margin
4.6%
6.3%
Adjusted EPS*
% Change
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
$0.41
(34.9)%
$0.63
1.6%
 Sales impacted by:
‒ Lower defense segment sales
‒ Planned fire truck production
rate decrease
 Higher access equipment and
commercial segment sales
 EPS impacted by:
‒ Lower defense segment
operating income
‒ Heavier mix of telehandlers in
access equipment segment
‒ MOVE investments
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
January 27, 2015
8
Updated Expectations for FY15
 Revenues of $6.5 billion to $6.6 billion
 Adjusted operating income* of $510 million to $540 million
 Adjusted EPS* of $4.00 to $4.25
Segment information
Measure
Sales
(billions)
Operating
Income Margin
Access
Equipment
Defense
Fire &
Emergency
Commercial
$3.7 - $3.8
~$1.0
~$0.80
~$1.0
~15.0%
Slightly above
break even
~4.25%
~6.5%
Additional expectations
Q2 Commentary
 Corporate expenses of $140 - $145 million
 Refinancing of 8.5% Sr. Notes
 Tax rate of ~31%
 CapEx of ~$150 million
 Free cash flow* ~$200 million
 Assumes share count of ~80 million
MOVING THE WORLD AT WORK
*
OSK First Quarter 2015 Earnings Call
 Expect adjusted EPS in range of Q2 FY14
adjusted EPS*
 Continued higher telehandler sales mix due to Tier 4
 FHTV break in production until contract extension
is finalized
Non-GAAP results. See Appendix for reconciliation to GAAP results.
January 27, 2015
9
MOVING THE WORLD AT WORK
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]
OSK First Quarter 2015 Earnings Call
January 27, 2015
10
Appendix: Access Equipment
(Dollars in millions)
First Quarter
Net Sales
2015
$716.7
% Change
Operating Income
7.2%
$77.2
2014
$668.6
15.0%
$90.3
% Change
(14.5)%
84.6%
% Margin
10.8%
13.5%
Comments
 Sales impacted by:
 Higher North American
telehandler and lower AWP sales
 Higher volume in all regions,
except Latin America
 Operating income impacted by:
 Product mix
 Higher NPD and operating costs
 Prior year military contract
finalization
 Higher sales volume
 Backlog up 69% vs. prior year
to $793 million
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
11
Appendix: Defense
(Dollars in millions)
First Quarter
Net Sales
2015
2014
$269.3
$481.3
% Change
(44.1)%
(41.9)%
Comments
 Sales impacted by:
 Lower sales to U.S. DoD
 Prior year international M-ATV
sales
 Operating income impacted by:
Adjusted
Operating Income*
 Lower sales volume
$6.4
$24.8
% Change
(74.2)%
(59.3)%
% Margin
2.4%
5.2%
 Prior year unfavorable contract
pricing adjustment
 Favorable aftermarket product
mix
 Backlog down 59% vs. prior
year to $670 million
MOVING THE WORLD AT WORK
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
OSK First Quarter 2015 Earnings Call
January 27, 2015
12
Appendix: Fire & Emergency
(Dollars in millions)
First Quarter
Net Sales
2015
2014
$167.0
$198.0
% Change
Operating Income
(15.6)%
$1.5
8.7%
$6.9
% Change
(77.6)%
28.5%
% Margin
0.9%
3.5%
Comments
 Sales impacted by:
 Planned reduction in fire truck
production rate to implement
operational improvements
 Prior year large international
ARFF shipment
 Operating income impacted by:
 Lower sales volume
 Favorable warranty performance
 Backlog up 38% vs. prior year
to $700 million
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
13
Appendix: Commercial
(Dollars in millions)
First Quarter
Net Sales
% Change
2015
2014
$210.2
9.1%
$192.6
8.6%
$12.4
$10.2
Operating Income
% Change
20.9%
27.7%
% Margin
5.9%
5.3%
Comments
 Sales impacted by:
 Higher RCV unit volume
 Higher aftermarket parts &
service
 Operating income impacted by:
 Higher sales volume
 Favorable warranty performance
 Investments in MOVE initiatives
 Backlog up 39% vs. prior year
to $238 million
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
14
Appendix: Commonly Used Acronyms
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
OCO
Overseas Contingency Operations
EMD
Engineering & Manufacturing Development
OH
Overhead
EPS
Diluted Earnings Per Share
OI
Operating Income
FHTV
Family of Heavy Tactical Vehicles
OOS
Oshkosh Operating System
FMS
Foreign Military Sales
OPEB
Other Post-Employment Benefits
FMTV
Family of Medium Tactical Vehicles
PLS
Palletized Load System
GAAP
U.S. Generally Accepted Accounting Principles
PUC
Pierce Ultimate Configuration
HEMTT
Heavy Expanded Mobility Tactical Truck
R&D
Research & Development
HET
Heavy Equipment Transporter
RCV
Refuse Collection Vehicle
HMMWV
High Mobility Multi-Purpose Wheeled Vehicle
RFP
Request for Proposal
IRC
Independent Rental Company
ROW
Rest of World
IT
Information Technology
SMP
Standard Military Pattern (Canadian MSVS)
JLTV
Joint Light Tactical Vehicle
TACOM
Tank-automotive and Armaments Command
JPO
Joint Program Office
TDP
Technical Data Package
JROC
Joint Requirements Oversight Council
TPV
Tactical Protector Vehicle
JUONS
Joint Urgent Operational Needs Statement
TWV
Tactical Wheeled Vehicle
L-ATV
Light Combat Tactical All-Terrain Vehicle
UCA
Undefinitized Contract Action
LVSR
Logistic Vehicle System Replacement
UIK
Underbody Improvement Kit (for M-ATV)
MRAP All-Terrain Vehicle
UK
United Kingdom
M-ATV
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
15
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):
Three Months Ended
December 31,
2015
Adjusted earnings per share - diluted (non-GAAP)
$
OPEB curtailment gain, net of tax
2014
0.41
$
0.02
0.63
-
Earnings per share - diluted (GAAP)
$
0.43
$
0.63
Adjusted operating income (non-GAAP)
$
62.3
$
96.5
OPEB curtailment gain
3.4
-
Operating income (GAAP)
$
65.7
$
96.5
Adjusted defense segment operating income (non-GAAP)
$
6.4
$
24.8
$
24.8
OPEB curtailment gain
3.4
Defense segment operating income (GAAP)
$
9.8
-
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
16
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 2015 Expectations
Low
High
Adjusted operating income (non-GAAP)
OPEB curtailment gain
Operating income (GAAP)
$
Adjusted earnings per share - diluted (non-GAAP)
OPEB curtailment gain, net of tax
Debt extinguishment costs, net of tax
Earnings per share - diluted (GAAP)
$
$
Net cash flows provided by operating activities
Additions to property, plant and equipment
Net additions to equipment held for rental
Free cash flow
$
510.0
3.4
513.4
$
4.00
0.02
(0.11)
3.91
$
$
$
540.0
3.4
543.4
4.25
0.02
(0.11)
4.16
Fiscal 2015
Expectations
$
372.0
(150.0)
(22.0)
$
200.0
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
17
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:
Three Months Ended
March 31, 2014
Adjusted earnings per share - diluted (non-GAAP)
$
0.80
Reduction of valuation allowance on net operating
loss carryforward
0.14
Pension curtailment, net of tax
(0.03)
Debt extinguishment costs, net of tax
(0.08)
Earnings per share - diluted (GAAP)
$
0.83
MOVING THE WORLD AT WORK
OSK First Quarter 2015 Earnings Call
January 27, 2015
18