q2 2013 earnings release slides final...osk second quarter 2013 earnings call april 30, 2013 18 •...

Oshkosh CorporationSecond Quarter Fiscal 2013April 30, 2013

Charles L. SzewsChief Executive Officer

Wilson R. JonesPresident and Chief Operating Officer

David M. SagehornExecutive Vice President and Chief Financial Officer

Patrick N. DavidsonVice President, Investor Relations

Forward-Looking StatementsThis presentation includes 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, withoutlimitation, 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, areforward-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, 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 U.S. DoDprocurement 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 comply with laws and regulations applicable to U.S. government contractors; the Company’s ability to increase prices to raise margins or offset higher input costs; increasing commodity andother 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 theongoing 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 fromquality or production issues; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; 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 press release. 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.

2April 30, 2013OSK Second Quarter 2013 Earnings Call

Strong Performance Continuesin Fiscal 2013*

• $0.96 Q2 EPS– More than double Q2FY12

• Operating income margins expanded in all segments

• Focused on disciplined execution of MOVE strategy

• Increasing FY13 adjusted EPS** estimate range– $2.90 to $3.15

3OSK Second Quarter 2013 Earnings Call April 30, 2013

Net

Sal

es(m

illio

ns) EPS

OSK Fiscal Q2 Performance

$1,984 $2,062 $0.96

$0.47

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

FY13 FY12Net Sales EPS

* Continuing operations only.

* * FY13 expectations exclude certain non-GAAP adjustments (see Appendix).

MOVE Strategy Continues toGuide Outlook Through 2015


• Executing MOVE initiatives– Generally on schedule

• Oshkosh Operating System provides framework and tools to execute strategy– Utilize strategy deployment to

manage initiatives

• Driving for global revenue growth

• Pierce celebrating 100-year anniversary

Defense

• Manufacturing efficiency improvements evident

• International M-ATV sales enhancedQ2 results

• Continuing to pursue international business development opportunities

– Received initial M-ATV order from Kingdom of Saudi Arabia for FY14 delivery

• Managing a 30% decline in daily production beginning June 2013

– Announced reductions in staffing levels to match expected lower volume

• Expect minimal impact from sequestration in FY13


Access Equipment• Team and processes focused on

execution– Delivering margin improvement goals– Realizing previously announced price

increases• Continuing to benefit from

replacement demand– Primarily in North America– Independents returning to market

• Global picture remains mixed– Slow growth in Europe with solid

BAUMA attendance– Expected growth in Latin America– Australia impacted by mining and

energy slowdown• Multiple new product launches

OSK Second Quarter 2013 Earnings Call6

April 30, 2013

Fire & Emergency

• Signs of improving municipal demand, but federal demand still declining

• Ambulance business exit completed

• Investing in MOVE initiatives• ARFF team pursuing many

international opportunities– 22-unit order for Japan

• 100 years of Pierce Manufacturing


April 30, 2013

Commercial

• Brad Nelson new segment president

• Continuing to invest in MOVE• Concrete placement products

– Mixer orders remained strong– Aftermarket parts and service

business strengthened

• Refuse collection vehicles– Order timing impacted Q2 results– CNG remains strong– New product introductions at Waste

Expo in Q3


April 30, 2013

Consolidated Results*

• Sales impacted by:‒ Lower volume in defense

Increases in all non-defense segments

• Margins impacted by:+ Price realization

+ International M-ATV sales

+ Operational efficiencies

Comments

(Dollars in millions, except per share amounts)

Second Quarter2013 2012


April 30, 2013

Net Sales $1,984.4 $2,062.3% Change (3.8)% 18.9%

Operating Income $134.6 $84.1

% Change 60.0% (38.8)%

% Margin 6.8% 4.1%

EPS $0.96 $0.47% Change 104.3% (39.7)%


Increasing Expectationsfor FY13*

10

Additional expectations• Adjusted corporate expenses ~$140 - $145 million

(higher share-based compensation and IT investments)

• Tax rate of ~31%; including R&D income tax credit reinstatement benefit

• CapEx of ~$50 million• Free cash flow $110 - $135 million• Assumes share count** of ~89 million

Segment information

Measure Access Equipment Defense Fire &

Emergency Commercial

Sales(billions) $2.85 - $3.05 $3.1 - $3.2 $0.72 - $0.75 $0.72 - $0.75

Operating Income Margin 10.5%-11.0% ~7.0% 2.0%-2.5% 4.5%-5.0%

• Revenues range of $7.35 billion to $7.65 billion• Adjusted operating income range of $430 million to $465 million• Adjusted EPS from continuing operations range of $2.90 to $3.15

Comments on Third Quarter• Expect highest quarter for EPS driven

by seasonality and international M-ATV sales volume

* FY13 expectations exclude certain non-GAAP adjustments (see Appendix).

April 30, 2013OSK Second Quarter 2013 Earnings Call

** Excludes impact of any additional share repurchases in Q3 – Q4.

Going Forward• Disciplined Execution

• Tracking to MOVE Goals

• Targeting FY15 EPS of $4.00 to $4.50


For information contact:

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

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

Net Sales $817.4 $760.4% Change 7.5% 61.4%

Operating Income $95.0 $68.4% Change 38.9% 285.3%% Margin 11.6% 9.0%

Second Quarter

(Dollars in millions)

2013 2012

Appendix: Access Equipment

• Sales impacted by: Higher telehandler volume in

North America Price realization Higher aftermarket volume- Lower volume in Australia

• Margins impacted by: Price realization Benefits of MOVE initiatives

• Backlog down 17% vs.prior year to $779 million

Comments

April 30, 2013OSK Second Quarter 2013 Earnings Call13

Appendix: Defense

• Sales impacted by: Lower M-ATV aftermarket

and FMTV volume

International M-ATV shipments

• Margins impacted by: Higher M-ATV mix

Operational efficiencies• Backlog down 34% vs.

prior year to $2.6 billion

Comments

Net Sales $827.6 $987.3% Change (16.2)% 1.5%

Operating Income $67.0* $41.9% Change 59.7% (70.4)%% Margin 8.1% 4.2%

Second Quarter


2013 2012


* Includes $1.4 million of net costs related to announced workforce reduction.

Net Sales $174.0 $168.5% Change 3.3% 1.8%

OperatingIncome (Loss) $2.7 $(3.0)

% Change 189.1% (104.7)%% Margin 1.6% (1.8)%

Second Quarter*


2013 2012

Appendix: Fire & Emergency

• Sales impacted by:+ Product mix+ Price realization- Lower unit volumes

• Margins impacted by:+ Price realization+ Lower operating

expenses- Lower absorption

• Backlog* down 6% vs. prior year to $500 million

Comments



Appendix: Commercial

• Sales impacted by:+ Higher concrete mixer

volume + Aftermarket parts Lower RCV volume

• Margins impacted by:+ Absorption from higher

volume

• Backlog up 24% vs. prior year to $171 million

April 30, 2013 16OSK Second Quarter 2013 Earnings Call

Comments

Net Sales $185.5 $167.7% Change 10.6% 10.6%

Operating Income $7.6 $3.9% Change 97.8% (27.7)%% Margin 4.1% 2.3%

Second Quarter(Dollars in millions)

2013 2012

Appendix: Commonly UsedAcronyms


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 OI Operating Income

EMD Engineering & Manufacturing Development PLS Palletized Load System

EPS Diluted Earnings Per Share PUC Pierce Ultimate Configuration

FHTV Family of Heavy Tactical Vehicles R&D Research & Development

FMS Foreign Military Sales RCV Refuse Collection Vehicle

FMTV Family of Medium Tactical Vehicles RFP Request for Proposal

HEMTT Heavy Expanded Mobility Tactical Truck ROW Rest of World

HET Heavy Equipment Transporter SMP Standard Military Pattern (Canadian MSVS)

HMMWV High Mobility Multi-Purpose Wheeled Vehicle TACOM Tank-automotive and Armaments Command

IT Information Technology TDP Technical Data Package

JLTV Joint Light Tactical Vehicle TFFT Tactical Fire Fighting Truck

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

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):

Low HighCorporateNon-GAAP operating expenses (140.0)$ (145.0)$ Tender offer and proxy contest costs (16.3) (16.3) GAAP operating expenses (156.3)$ (161.3)$

ConsolidatedNon-GAAP operating income 430.0$ 465.0$ Tender offer and proxy contest costs (16.3) (16.3) GAAP operating income 413.7$ 448.7$

Non-GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 2.90$ 3.15$ 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 2.79$ 3.04$

Net cash flows provided by operating activities 175.0$ 200.0$ Additions to property, plant and equipment (50.0) (50.0) 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 110.0$ 135.0$

Fiscal 2013 Expectations

q2 2013 earnings release slides final...osk second quarter 2013 earnings call april 30, 2013 18 •...

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