MOVING THE WORLD AT WORK Oshkosh Corporation Classification: Highly Restricted Fourth Quarter Fiscal 2015 October 29, 2015 Charles L. Szews Chief Executive Officer 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 Oshkosh Corporation (NYSE:OSK)
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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; the Company’s estimates of access equipment demand; the strength of the U.S. dollar and its impact onCompany 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 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; risks related to the Company’s future defense segment sales as a result of the outcome of a competitor’s protest of the JLTV production contract award to the Company; the Company’s ability to finalize an international contract for a significant quantity of M-ATVs, with the majority of the units sold in fiscal 2016; 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 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 related 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 andregulations 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 today. All forward-looking statements speak only as of the dateof 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.
October 29, 2015OSK Fourth Quarter 2015 Earnings Call 2
Additional expectations Corporate expenses of $145 - $150 million Tax rate of ~ 34% CapEx of ~ $100 million Free Cash Flow* ~ $350 million Assumes share count of ~ 75 million
Segment information
Revenues of ~ $6.2 - $6.5 billion Operating income of $400 million to $440 million EPS of $3.00 to $3.40
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
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Quarterly commentary Earnings weighted to second half
Increased international M-ATV sales Seasonality Cautious construction equipment customers
First quarter slightly profitable
Measure Access Equipment Defense Fire &
Emergency Commercial
Sales(billions) $2.9 to $3.05 ~ $1.55 ~ $0.9 ~ $1.0
ARFF Aircraft Rescue and Firefighting MECV Modernized Expanded Capability VehicleAWP Aerial Work Platform 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 CompanyEAME Europe, Africa & Middle East OCO Overseas Contingency OperationsEMD Engineering & Manufacturing Development OH OverheadEPS Diluted Earnings Per Share OI Operating IncomeFHTV Family of Heavy Tactical Vehicles OOS Oshkosh Operating SystemFMS Foreign Military Sales OPEB Other Post-Employment BenefitsFMTV Family of Medium Tactical Vehicles PLS Palletized Load SystemGAAP U.S. Generally Accepted Accounting Principles PUC Pierce Ultimate ConfigurationGAO Government Accountability Office R&D Research & DevelopmentHEMTT Heavy Expanded Mobility Tactical Truck RCV Refuse Collection VehicleHET Heavy Equipment Transporter RFP Request for ProposalHMMWV High Mobility Multi-Purpose Wheeled Vehicle ROW Rest of WorldIRC Independent Rental Company SMP Standard Military Pattern (Canadian MSVS)IT Information Technology TACOM Tank-automotive and Armaments CommandJLTV Joint Light Tactical Vehicle TDP Technical Data PackageJPO Joint Program Office TPV Tactical Protector VehicleJROC Joint Requirements Oversight Council TWV Tactical Wheeled VehicleJUONS Joint Urgent Operational Needs Statement UCA Undefinitized Contract ActionL-ATV Light Combat Tactical All-Terrain Vehicle UIK Underbody Improvement Kit (for M-ATV)LVSR Logistic Vehicle System Replacement UK United KingdomM-ATV MRAP All-Terrain Vehicle ZR Zero Radius
October 29, 2015OSK Fourth Quarter 2015 Earnings Call 19
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):
2015 2014 2015 2014
Adjusted earnings per share - diluted (non-GAAP) 0.67$ 0.96$ 3.02$ 3.62$ Reduction of valuation allowance on net operating loss carryforward - - - 0.14 Pension and OPEB curtailment/settlement, net of tax - (0.03) 0.03 0.01 Contract pricing adjustment for OPEB costs, net of tax - - - (0.08) Debt extinguishment costs, net of tax - - (0.12) (0.08) Workforce reduction charges, net of tax (0.03) - (0.03) - Earnings per share - diluted (GAAP) 0.64$ 0.93$ 2.90$ 3.61$
Fiscal 2015 Fiscal 2016Actual Expectations
Net cash flows provided by operating activities 82.5$ 475.0$ Additions to property, plant and equipment (131.7) (100.0) Net additions to equipment held for rental 0.5 (25.0) Free cash flow (usage) (48.7)$ 350.0$
Three Months Ended Fiscal Year Ended,September 30, September 30,