2011 Annual Shareholders Meeting February 1, 2011

Transcription

1 2011 Annual Shareholders Meeting February 1, 2011

2 Forward Looking Statements and Discontinued Operations This presentation contains statements that the Company believes to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 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 impact on revenues and margins of the decrease in M-ATV production rates; the cyclical nature of the Company s access equipment, commercial and fire & emergency markets, especially during periods of global economic weakness and tight credit markets; the Company s ability to produce vehicles under the FMTV contract at targeted margins; the duration of the ongoing 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 equity market expectations; the expected level and timing of DoD procurement of products and services and funding thereof, especially in an environment when the U.S. government is operating under a Continuing Resolution budget action; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; the potential for the U.S. government to competitively bid the Company s Army and Marine Corps contracts; the consequences of financial leverage, which could limit the Company s ability to pursue various opportunities; the potential for commodity and other raw material costs to rise sharply, particularly in a future economic recovery; risks related to costs and charges as a result of facilities consolidation and alignment, including that anticipated cost savings may not be achieved; 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 delays arising from supplier quality or production issues; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; risks related to work stoppages and other labor matters: the potential for disruptions or cost overruns in the Company s global enterprise system implementation; the potential for increased costs relating to compliance with changes in laws and regulations; and risks related to disruptions in the Company s distribution networks. 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 January 28, The Company disclaims any obligation to update such forward-looking statements. All operating results included in this presentation reflect results from continuing operations only. 2

3 2011 Annual Shareholders Meeting February 1, 2011

4 Oshkosh Corporation partners with customers to deliver superior solutions that safely and efficiently move people and materials at work, around the globe and around the clock. 4

5 Oshkosh Corporation A Readiness Company DEFENSE ACCESS EQUIPMENT FIRE & EMERGENCY COMMERCIAL 5

6 Since we talked last year 6

7 Since we talked last year 7

8 Mission Driven in

9 SALES (billions) Revenue Growth $12 $10 $8 $6 $4 $2 $ FISCAL YEAR 9

10 SALES (billions) FREE CASH FLOW (millions) Cash Generation Strong track record of free cash flow $12 $900 $10 $750 $8 $600 $6 $450 $4 $300 $2 $150 $ $0 Sales Free Cash Flow FISCAL YEAR Free Cash Flow is a non-gaap number See Appendix 10

11 Return OSK Greatly Outperforms Benchmarks Shareholder return from Sept 30, 1996 to Sept 30, ,600% 1,200% 800% 400% 0% OSK S&P 500 DOW Mid 400 Source: Thomson Financial 11

12 Strong Financials, Preparing for Opportunities De-levered balance sheet with debt to EBITDA ratio under 2 to 1 Strong cash flow and operating income Track record of investing in innovation Gearing up for a return to acquisition strategy Outstanding performance in FY10 on virtually every measure vs. FY09 Sales $9.8B 87.4% Operating Income * $1.4B 574% Operating Income Margin 14.4% 10.4% EPS * $8.94 Debt Reduction $736M * Income from continuing operations; excludes after-tax non-cash charges for goodwill and other long-lived asset impairments 12

13 Mission Driven in 2010: Leading Edge Technologies 13

14 Mission Driven in 2010: Defense 14

15 Mission Driven in 2010: Access Equipment 15

16 Mission Driven in 2010: Fire & Emergency 16

17 Mission Driven in 2010: Commercial 17

18 Mission Driven in 2010: Oshkosh Operating System 18

19 Fiscal 2011: A Solid Transition Year Preparing for return to acquisitions Continued debt reduction, stronger balance sheet Non-defense businesses transitioning to growth Defense revenue growth YoY excluding M-ATV 19

20 Fiscal 2011 Growth Drivers Going Global Improved Operations and Lower Costs Non-Defense Markets Recovering New Program Opportunities 20

21 Proven Performer Leader in Key Markets Generally #1 share Industry innovator Strong distribution networks Strong Cash Generation and Balance Sheet Proven history of generating cash Improved balance sheet, strong credit metrics Preparing for return to acquisitions Growth Drivers Non-defense recovery Broad defense opportunities Global growth Optimize operations 21

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23 2011 Annual Shareholders Meeting February 1, 2011

24 Appendix: Non-GAAP Financial Measures The table below presents reconciliations of the Company s presented non-gaap measures to the most directly comparable GAAP measures (in millions, except per share amounts) for the year ended September 30: Non-GAAP operating income $ 1,419.7 $ Intangible asset impairment charges (25.6) (1,190.2) GAAP operating income (loss) $ 1,394.1 $ (979.5) Non-GAAP income (loss) from continuing operations, net of tax $ $ - Intangible asset impairment charges (25.6) (1,190.2) Income tax benefit associated with intangible asset impairment charges GAAP income (loss) from continuing operations, net of tax $ $ (1,167.0) Non-GAAP income (loss) per share from continuing operations $ 8.94 $ - Intangible asset impairment charges per share, net of tax (0.22) (15.26) GAAP income (loss) per share from continuing operations $ 8.72 $ (15.26) 24

25 Appendix: Non-GAAP Financial Measures The table below presents reconciliations of the Company s presented non-gaap measures to the most directly comparable GAAP measures for the year ended September 30: Free Cash Flow Net cash provided (used) by operating activities $ (16.2) $ 65.8 $ 79.9 $ 39.0 $ 49.7 $ (8.4) $ $ $ $ $ $ $ $ $ Additions to property, plant and equipment (1) (5.4) (6.3) (8.5) (18.0) (22.7) (18.5) (15.6) (24.7) (29.9) (43.2) (56.0) (83.0) (75.8) (46.2) (83.2) Dividends paid (4.4) (4.2) (4.2) (4.2) (5.4) (5.7) (5.8) (6.4) (9.1) (16.0) (27.1) (29.6) (29.8) (14.9) - $ (26.0) $ 55.3 $ 67.2 $ 16.8 $ 21.6 $ (32.6) $ $ 74.2 $ 95.9 $ $ 94.3 $ $ $ $ (1) Excludes equipment held for rental 25