27 slides from Oshkosh Corporation (holding Company)'s proxy contest presentation, Nov 28, 2011
Slide 1: Oshkosh Corporation Investor Handout November 2011
Oshkosh Corporation Investor Handout November 2011
Slide 2: Forward Looking Statements
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
Slide 3: Mission Driven: To Move the World at Work – Agenda
Oshkosh Corporation Mission Driven: To Move the World at Work Agenda Business overview Market conditions review MOVE strategy
Slide 4: Business Overview
Business Overview - MISSION DRIVEN: Investor Handout November, 2011
Slide 5: Oshkosh Corporation Moves the World at Work
Oshkosh Corporation Moves the World at Work DEFENSE ACCESS EQUIPMENT FIRE & EMERGENCY COMMERCIAL
Slide 6: A Portfolio of Leaders
A Portfolio of Leaders GLOBAL RANK Access Equipment #1 Fire Apparatus #1 Airport Products #1 NORTH AMERICA1 RANK Heavy Defense Trucks #1 (Army & Marines) Concrete Mixers / Batch Plants #1 Refuse Collection Vehicles #1 Medium Defense Trucks #1 (Army & Marines) 1 The leading supplier of heavy, medium
Slide 7: FY11 Performance Metrics
FY11 Performance Metrics Strong performance in FY11, following record FY10 that featured ~7,500 M-ATVs and related sales Access equipment segment rebound from prior year Solid year of retiring debt with ~18% additional reduction in FY11 * Income from continuing operations; excludes after-tax non-cas
Slide 8: Current Operating Environment
Current Operating Environment
Slide 9: Defense Spending Outlook
Defense Spending Outlook U.S. Defense budget top line remains unsettled: Troops pulling out of Iraq Spending reductions coming Supercommittee failed to reach agreement on future government spending cuts Global instability remains, particularly in Middle East Several countries considering large TWV p
Slide 10: Ready for a New Era of Competition
Ready for a New Era of Competition Many Defense Opportunities DEFENSE Opportunity Expected RFP Expected Award Expected Production Start Estimated Quantity TAPV Aug-11 July-12 Sep-14 500 MSVS Nov-11 Sep-12 Sep- 13 1,533 MECV*-Army Nov-11 May-12 2014 5,750 JLTV-EMD Dec-11 Q3FY12 2016 20/20,750 Middle
Slide 11: FMTV Contract Status
FMTV Contract Status Largest requirements of any TWV program of record 18,500 trucks and 7,900 trailers under contract Ramp-up challenges Tripling of truck orders Orders ahead of price increases TDP and new contract language Expect to be profitable in Q2 FY12* * Information stated as of November 16,
Slide 12: U.S. Market Conditions: Industry Data Continues to Strengthen
U.S. Market Conditions Industry Data Continues to Strengthen Encouraging Market Indicators: Aging fleets and rising values ACCESS EQUIPMENT +8.0% 6 months +14.3% 6 months +8.8% 6 months Source: Rouse Asset Services, October 2011. Average Age (in months) Used Equipment Values (OLV) AWP – Articulating
Slide 13: Global Opportunities Despite U.S. Municipal Headwinds
Global Opportunities Despite U.S. Municipal Headwinds Substantial global opportunities International airport growth Desire for technology in emerging markets Recovering broadcast demand U.S. fire truck market at historically low levels 30% of Pierce sales to new customers FIRE & EMERGENCY Source: FA
Slide 14: U.S. Recovery and Emerging Markets Drive Opportunities
U.S. Recovery and Emerging Markets Drive Opportunities Domestic mixer market at unsustainable low levels International markets represent strong opportunities Green energy efficient solutions continuing to grow COMMERCIAL Source: TMMB –Truck Mixer Manufacturers Bureau, US Census Bureau, Moody’s Analy
Slide 15: MOVE Strategy
MOVE Strategy A MISSION DRIVEN: Investor Handout November, 2011
Slide 16: Executing MOVE Strategy
Executing MOVE Strategy Completed comprehensive strategic planning process Considered strategic alternatives Asset sales/dispositions don’t add fair value at this time Focusing on most impactful initiatives under current economic conditions Reducing costs aggressively Seeking organic growth Focusing
Slide 17: Mission Driven: To Move the World at Work
Mission Driven: To Move the World at Work Primary Objectives Execute a strong global growth strategy to drive superior shareholder value regardless of market conditions Optimize operations and performance during transition period Leverage mission driven culture to support and enhance new strategic d
Slide 18: MOVE Strategy
MOVE Strategy M O V E arket recovery and growth Capture full upside of economic recovery and market growth with strong focus on execution and conquest sales ptimize cost and capital structure Optimize our cost and capital structure to provide value for customers and shareholders value innovation Con
Slide 19: Market Recovery and Growth
- Market Recovery and Growth Major non-defense markets have significant upside potential M OSK Operating Income ($ millions) Approaching $500M opportunity in recovery * Prior Peak Operating Income: Access $363M – FY08, F&E $96M – FY07, Commercial $76M – FY07. ** Operating income adjusted for impairm
Slide 20: Optimize Cost and Capital Structure
- Optimize Cost and Capital Structure Targeting cost reduction to drive mid single digit margins at cycle bottom Dedicated teams focused on process and product cost reduction Facilities rationalization Manufacturing footprint reduced by ~20% since FY07 Evaluating further opportunities Standardize an
Slide 21: Value Innovation
- Value Innovation Increased focus on delivering value-enhancing solutions Expect significant near term Defense opportunities Drive share gains and margin expansion Proven history of industry-leading innovations TAK-4®- independent suspension - the platinum standard Dash Cab Forward (CF) Expected to
Slide 22: Emerging Market Expansion
- Emerging Market Expansion Targeting high growth regions for organic growth, including BRICs Attractive markets with low product penetration rates Work-at-height equipment Fire & emergency apparatus Infrastructure expansion International non-BRIC also strong potential Global opportunities for defen
Slide 23: OSK: Investment Highlights
OSK: Investment Highlights Top Tier Asset Base and Solid Reputation Market leading brands Strong distribution network Industry leading innovator Experienced management team Strong Balance Sheet and Improved Financial Profile ~$2 billion debt reduction since FY08 Facility rationalizations improving c
Slide 24: For information contact
For information contact: Patrick N. Davidson Vice President, Investor Relations 920 966-5939 pdavidson@oshkoshcorp.com Tina Schmiedel Director, Investor Relations 920 233-9235 tschmiedel@oshkoshcorp.com
Slide 25: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures The table below presents a reconciliation of the Company’s presented non-GAAP measures to the most directlycomparable GAAP measures (in millions, except per share amounts): Fiscal Year Ended September 30, 2011 Defense segment Non-GAAP operating income 546.4 $ Lo
Slide 26: Appendix: Commonly Used Acronyms
Appendix: Commonly Used Acronyms ARFF Aircraft Rescue and Firefighting MECV Modernized Expanded Capability Vehicle AWP Aerial Work Platform MRAP Mine Resistant Ambush Protected CNG Compressed Natural Gas MSVS Medium Support Vehicle System (Canada) DoD Department of Defense MTT Medium Tactical Truck
Slide 27: Additional Information and Where to Find It
Additional Information and Where to Find It On November 18, 2011, Oshkosh Corporation (the “Company”) filed a preliminary proxy statement with the Securities and Exchange Commission (the “SEC”) in connection with its 2012 Annual Meeting of Shareholders (the “Annual Meeting”). Prior to the Annual Mee