Baird’s 2017 Global Industrial Conference€¦ · to steady growth in municipal demand. Domestic Fire Truck Market Drivers Gaining Momentum. Baird's 2017 Global Industrial Conference

Oshkosh Corporation (NYSE:OSK)Baird’s 2017 Global Industrial Conference

NOVEMBER 8, 2017

Dave SagehornExecutive Vice President & CFO

Patrick DavidsonSr. Vice President, Investor Relations

November 8, 2017Baird's 2017 Global Industrial Conference 2

Forward-Looking StatementsThis 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 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 acceptance of and funding or payments for such products and services; 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 Family of Medium Tactical Vehicles 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; projected adoption rates of work at height machinery in emerging markets; the impact of severe weather or natural disasters that may 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; 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 data security threats and breaches; 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 October 31, 2017. All forward-looking statements speak only as of October 31, 2017. 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.

3

A different integrated global industrial

MOVE – Evolving to deliver more valuePositioned for long-term

success

Oshkosh Corporation Key Messages

November 8, 2017Baird's 2017 Global Industrial Conference

Leading provider of specialty vehicles Celebrating 100 years

in 2017

A different integrated global industrial

Focused on delivering value to customers and shareholders

Serial innovator of game-changing new products

ACCESS EQUIPMENT DEFENSE FIRE & EMERGENCY COMMERCIAL

Build. Serve. Defend. Protect.


Oshkosh Corporation Profile - FY17

5

44%Access Equipment

27%Defense

15%Fire &

Emergency

14%Commercial

Revenue by Segment

74%United States

3%Other NA

17%EMEA

6%Rest of World

Revenue by Geography


FY17 global revenue of $6.8 billionacross four segments

Integrated approach drives opportunity/efficiency across enterprise

Fire Apparatus

6

Concrete Mixers/Batch Plants

#1

Military Tactical Wheeled Vehicles

Airport Products (ARFF/Snow Removal)

Aerial Work Platforms/Telehandlers

Refuse Collection Vehicles

Broad Industry Leadership

Strong Brands Value Creation

Wreckers & Carriers

(1) Company estimates

NORTH AMERICA RANK (1)

#1

#1

#1

#1

#2

GLOBAL RANK (1)

Baird's 2017 Global Industrial Conference November 8, 2017

#1

Leveraging Our Unique Position

7

Diverse End Markets

Integrated Operations


Take Advantage of Opportunities Unavailable to Many Companies

8

Grow profitably by maintaining intense focus on customer experience

Optimize our costs and capital structure to provide value for customers and shareholders - Simplify

Lead in innovation over the product life cycle

Drive international growth in targeted geographies

Evolving to Deliver More Value


9November 8, 2017Baird's 2017 Global Industrial Conference

People First Culture

Maturing the concept

Driving better results

Engage. Develop. Connect.

OSK Full Year Performance

Strong Performance During 100th Year

Access equipment, defense and fire & emergency segments all achieved full year adjusted operating income* margin ≥10%

People First culture maturing Focus on simplifying our

businesses 4th consecutive year of

increasing dividends; goal of raising annually

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


Net Sales(billions) Adjusted EPS*

$3.14

$4.25

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

FY16 FY17

$6.3$6.8

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

FY16 FY17

Strong close to FY17 – full year results higher than originally expected

Customer sentiment and demand remain solid in North America‒ Rental company fleet metrics

support positive outlook Generally positive U.S.

construction trends Positive outlook for international

markets in FY18 Restructuring activities on track to

achieve targeted improvements Expect to grow in FY18


Access EquipmentRecent Highlights

Defense Recent Highlights Strong full-year results driven by

JLTV ramp and international M-ATV shipments

JLTV program on track‒ Pleased with results during government

testing and evaluation activities − International interest is growing

Strong backlog supports FY18 outlook FMTV recompete winner expected to

be announced in Q2 FY18

U.S. operating under Continuing Resolution− Not expected to impact segment in

FY18, but FY19 could be impacted if budget delays persist


Joint Light Tactical Vehicle (JLTV)U.S. JLTV Production Contract Overview

~$6.7 billion initial announced value Base award plus 8 order years Program scope includes:

– 4 Mission Package Configurations– Mission Kits– Interim Contractor Support (ICS)– Total Package Fielding (TPF)– System Technical Support (STS)– Technical Data Package

Quantity: 18,000+ vehicles(1)

– Vehicle deliveries expected through 2024


Utility

2 D

oor

4 D

oor

General Purpose Close Combat Weapons Carrier

Heavy Guns Carrier Future Variants

(1) Source: FY17 U.S. President’s Budget

U.S. JLTV Program Schedule


FY18 President’s Budget Funding Request

OrderQuantity

Expected SalesQuantity

FY16 804 ---

FY17(3) 2,020 ~600 to 650

FY18(4) 2,637 ~1,500 to 2,000

FY19(4) 4,737 ~3,000

FY20(4) 5,190 ~4,500

FY21(4) 3,838 ~5,000

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Deliveries& Testing

Armor Coupon Testing

Ballistic Testing

LRIP(1) YR 1 LRIP YR 2 LRIP YR 3

FRP(2) YR 1

Performance, Reliability & Live Fire Testing

Full Rate Production Milestone

Delivering unprecedented performance. On-time. On-budget.(1) Low Rate Initial Production(2) Full Rate Production(3) Actual(4) FY18-FY21 Order Quantity values based on FY18 President's Budget Request

FRP YR 2

Army First Unit Equipped

Marine Corps Fielding Decision

Global Light TWV Market PotentialToday’s HMMWV Installed Base(1)

240,000 HMMWVs

60 countries

30+ configurations

The Oshkosh JLTV Will Shape the History of Light Military Vehicles

53%47%

Armor CapableHMMWVUnarmoredHMMWV

JLTV is Next-Generation Protected Mobility for the Modern Battlefield

HMMWVJeep JLTV

(1) Source: Government publications, IHS Jane’s, SIPRI, AM General Website


Achieved >10% full year operating income margin− Earlier than anticipated − Disciplined commitment to

simplification U.S. fire apparatus market stable in

FY17 compared to FY16− Aging fleets and solid municipal tax

receipts support positive outlook Solid Q4 international contribution

and positive outlook − China 5-yr Plan targets 260

international airports by 2020


Fire & Emergency Recent Highlights

17

Housing prices and local property taxes have continued to recover

Aging fleets coupled with improving state and local tax receipts have led to steady growth in municipal demand

Domestic Fire Truck Market Drivers Gaining Momentum


Increasing Home Prices and Property Taxes

1990 1995 2000 2005 2010 2015

Data through June 2017

$ Billions

Q4 results in line with expectations Committed to improved performance− Driving lasting change through

simplification activities− Time needed to translate into

meaningfully better financial results

U.S. RCV market grew in FY17− Now above pre-recession levels

U.S. concrete mixer market remains well below pre-recession levels− Fleets continue to age

Positive longer-term market outlook


Commercial Recent Highlights

19

Revenues of $6.9 to $7.1 billion

Adjusted operating income* of $515 million to $565 million

Adjusted EPS* of $4.25 to $4.65

Additional expectations Corporate expenses of ~$150 million Adjusted tax rate* of ~30.5% CapEx of ~$100 million Free Cash Flow* of ~$350 million Assumes share count of ~76.0 million

Segment information

Measure Access Equipment Defense Fire &

Emergency Commercial

Sales(billions) $3.1 - $3.2 ~ $1.8 – $1.85 ~ $1.1 $0.95 - $0.975

Adj. Operating Income Margin 10.5% - 11.0%* 9.5% - 9.75% 10.5% - 11.0% 5.75% - 6.25%


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

Q1 Commentary Expect higher yr/yr sales and adjusted

earnings driven by defense segment Higher access equipment segment sales;

incremental margins impacted by higher material costs

FY18 Estimates – Growth Continues

Positive Long-term OutlookConvergence of favorable market dynamics and benefits of MOVE position OSK to deliver strong results


Favorable market dynamics‒ JLTV provides multi-year visibility

for Defense‒ Access Equipment replacement

demand opportunities‒ Fleet ages help to drive Fire &

Emergency and Commercial Segment demand

MOVE strategy drives results

Expected strong free cash flow over the cycle provides capital allocation alternatives

Expect revenue and operatingincome margin growth to continue

A Different Integrated Global Industrial Company

For informationcontact:

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

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

Appendix: Consolidated Results

Comments

(Dollars in millions, except per share amounts)

Full Year

Net Sales $6,829.6 $6,279.2% Change 8.8% 3.0%

Adjusted OperatingIncome* $506.3 $391.8

% Change 29.2% (1.6)%% Margin 7.4% 6.2%

Adjusted EPS* $4.25 $3.14% Change 35.4% 4.0%

2017 2016



Sales impacted by:+ Higher sales in defense and

fire & emergency

Adjusted EPS* impacted by:+ Higher defense, fire &

emergency and access equipment segment operating income

+ Lower tax rate− Lower commercial segment

operating income

Appendix: Access Equipment


Net Sales $3,026.4 $3,012.4% Change 0.5% (11.4)%

Adjusted Operating Income* $302.4 $291.2

% Change 3.8% (28.9)%% Margin 10.0% 9.7%

Full Year2017 2016

(Dollars in millions)

Sales impacted by:+ Higher AWP volume− Lower telehandler volume

Adjusted operating income* impacted by:+ Improved absorption+ Favorable mix‒ Higher incentive compensation

Backlog up 152.2% vs. prior year to $452 million

Comments


Appendix: Defense

Net Sales $1,820.1 $1,351.1% Change 34.7% 43.8%

Operating Income $207.9 $122.5% Change 69.7% 1,983.1%% Margin 11.4% 9.1%

Full Year


2017 2016


Sales impacted by:+ Ramp-up of JLTV program+ M-ATV international sales+ FHTV sales

Operating income impacted by:+ Higher sales volume‒ Higher SG&A

Backlog down 10.6% vs. prior year to $2.1 billion

Comments

Appendix: Fire & Emergency

Sales impacted by:+ Improved pricing+ Higher content units+ Increased volume

Operating income impacted by:+ Improved pricing



Net Sales $1,030.9 $953.3% Change 8.1% 16.9%

Operating Income $104.2 $67.0% Change 55.5% 53.1%% Margin 10.1% 7.0%

Full Year2017 2016


Comments

Appendix: Commercial


Net Sales $970.3 $979.2% Change (0.9)% 0.1%

Operating Income $43.8 $67.6% Change (35.2)% 4.8%% Margin 4.5% 6.9%

Full Year2017 2016


Sales impacted by:‒ Lower RCV volume+ Higher package sales+ Higher concrete mixer volume

Operating income impacted by:− Lower sales volume− Operational inefficiencies


Comments


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):

2017 2016

Adjusted earnings per share-diluted (non-GAAP) 4.25$ 3.14$ Long-lived asset impairment charge, net of tax - (0.22) Restructuring-related costs, net of tax (0.48) (0.01) Earnings per share-diluted (GAAP) 3.77$ 2.91$

Adjusted consolidated operating income (non-GAAP) 506.3$ 391.8$ Long-lived asset impairment charge - (26.9) Restructuring-related costs (43.3) (0.9) Consolidated operating income (GAAP) 463.0$ 364.0$

Adjusted access equipment segment operating income (non-GAAP) 302.4$ 291.2$ Long-lived asset impairment charge - (26.9) Restructuring-related costs (43.3) (0.9) Access equipment segment operating income (GAAP) 259.1$ 263.4$

Fiscal Year EndedSeptember 30,



• 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 High

Adjusted earnings per share-diluted (non-GAAP) 4.25$ 4.65$ Restructuring-related costs, net of tax (0.05) (0.05) Earnings per share-diluted (GAAP) 4.20$ 4.60$

Adjusted consolidated operating income (non-GAAP) 515.0$ 565.0$ Restructuring-related costs (5.0) (5.0) Consolidated operating income (GAAP) 510.0$ 560.0$

Adjusted access equipment operating income margin (Non-GAAP) 10.5% 11.0%Restructuring-related costs (0.2%) (0.2%)Access equipment operating income margin (GAAP) 10.3% 10.8%

September 30, 2018 ExpectationsFiscal Year Ended



• The table below presents a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures (in millions):

Fiscal 2018Expectations

Net cash flows provided by operating activities 450.0$ Additions to property, plant and equipment (100.0) Free cash flow 350.0$

Adjusted effective income tax rate (Non-GAAP) 30.5%Impact of restructuring-related costs on effective income tax rate (0.2%)Effective income tax rate (GAAP) 30.3%

Appendix: Commonly Used Acronyms


ARFF Aircraft Rescue and Firefighting LVSR Logistic Vehicle System ReplacementAWP Aerial Work Platform M-ATV MRAP All-Terrain VehicleAMPS Aftermarket Parts & Service MRAP Mine Resistant Ambush ProtectedCapEx Capital Expenditures MSVS Medium Support Vehicle System (Canada)CNG Compressed Natural Gas NOL Net Operating LossDGE Diesel Gallon Equivalent NPD New Product DevelopmentDoD Department of Defense NRC National Rental CompanyEMD Engineering & Manufacturing Development OCO Overseas Contingency OperationsEMEA Europe, Middle East & Africa OH OverheadEPS Diluted Earnings Per Share OI Operating IncomeFAST Act Fixing America’s Surface Transportation Act OOS Oshkosh Operating SystemFDIC Fire Department Instructors Conference 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

LRIP Low Rate Initial Production

Documents

Baird’s 2017 Global Industrial Conference€¦ · to steady growth in municipal demand. Domestic Fire Truck Market Drivers Gaining Momentum. Baird's 2017 Global Industrial Conference