AEM Investor Conference March 23, 2011 Charlie Szews

Transcription

1 AEM Investor Conference March 23, 2011 Charlie Szews President and Chief Executive Officer

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 Agenda I. Who We Are II. III. IV. 3

4 Oshkosh Corporation at a Glance DEFENSE ACCESS EQUIPMENT FIRE & EMERGENCY COMMERCIAL 4

5 A Portfolio of Market Leaders GLOBAL RANK Access Equipment # 1 NORTH AMERICA RANK Fire Apparatus # 1 Airport Products # 1 Heavy Defense Trucks # 1 (Army & Marines) Medium Defense Trucks # 1 (Army starts 2011 & Marines) Concrete Mixers / Batch Plants # 1 Refuse Collection Vehicles # 1 5

6 Revenue Growth $12B 10 SALES (billions) FISCAL YEAR 6

7 Cash Generation Strong track record of free cash flow $12B $ SALES (billions) FREE CASH FLOW (millions) Sales Free Cash Flow YEAR Free Cash Flow is a non-gaap number See Appendix 7

8 OSK Greatly Outperforms Benchmarks Shareholder return from Sept 30, 1996 to Sept 30, ,600% 1,200 Return (%) OSK S&P 500 DOW Mid 400 Source: Thomson Financial 8

9 Agenda I. Who We Are II. III. IV. 9

10 Fiscal 2011: A Transition Year Evaluating acquisition environment Continued debt reduction, stronger balance sheet Non-defense businesses transitioning to growth Solid revenue performance YoY excluding M-ATV 10

11 Going Global Improved Operations and Lower Costs Non-Defense Markets Recovering New Program Opportunities 11

12 2011 Focus Areas: Positioning the Company for Growth Investing in People and Systems Optimizing Operations Global Expansion Driven by BRICs Market Leading Innovations Customer Engagement 12

13 Agenda I. Who We Are II. III. IV. 13

14 DEFENSE Industry s Strongest Vehicle Line Up Leading provider of military tactical wheeled vehicles to U.S. Department of Defense Driving technological innovations Strong field service provider with support in theater 14

15 FIRE & EMERGENCY Premium Industry Brands Global leader in firefighting & emergency vehicles Innovative products and features Robust new product pipeline Growing international profile 15

16 ACCESS EQUIPMENT The Global Leader World s top supplier of access equipment Strong technology and quality Extensive service network Intensified focus on operations New factory in China Lean efforts accelerating Building out global distribution 16

17 ACCESS EQUIPMENT Product Portfolio Aerial Work Platforms Wreckers and Carriers Telehandlers 17

18 ACCESS EQUIPMENT Geographic Reach FY10 Revenues Rest of World 20% Europe, Africa & Middle East 20% North America 60% 18

19 ACCESS EQUIPMENT Product Adoption 19

20 ACCESS EQUIPMENT Market Conditions Industry Data Strengthening Encouraging Market Indicators: Aging fleets and rising values Average Age (in months) AWP Articulating Boom 53.9 AWP Scissor Lifts 53.4 AWP Telescopic Boom 57.9 Used Equipment Values (OLV) +4.7% 6 months +2.8% 6 months +2.4% 6 months Source: Rouse Asset Services, February

21 ACCESS EQUIPMENT New Products and Technologies 1500SJ Ultra Boom 340AJ Articulating Boom Lift Compact Crawler Boom Lifts Liftpod FS60 Toucan Mast Boom 21

22 ACCESS EQUIPMENT Strategic Focus for 2011 and Beyond Emerging markets Operational excellence Lead in market innovation Expand aftermarket services to lead in lifecycle management 22

23 COMMERCIAL Industry Leader: Improving Customer Productivity Concrete placement, refuse collection and service vehicles Proven efficiency, uptime, reliability, durability and ease of service Extensive sales and service networks Leader in green solutions 23

24 COMMERCIAL Product Portfolio Front and Rear Discharge Mixers Batch Plants Service Trucks Refuse Collection Vehicles 24

25 COMMERCIAL Market Conditions U.S. Recovery and Emerging Markets will Drive Growth Domestic mixer replacement at unsustainably low levels Expanding international markets Growing sales of green, energy efficient solutions U.S. Industry Mixer Sales 10,000 8,000 TOTAL UNITS 6,000 4,000 2, Source: TMMB Truck Mixer Manufacturers Bureau FISCAL YEAR 25

26 COMMERCIAL New Products and Technologies CNG Mixer Composite Chutes IMT Dominator: Series 3 Lo-Pro RCV International Mixer 26

27 COMMERCIAL Strategic Focus for 2011 and Beyond Grow organic revenue Capitalize on the economic upturn Optimize distribution model Aftermarket parts & service growth Operational excellence Continue to lead in product and technology innovation International expansion 27

28 Agenda I. Who We Are II. III. IV. 28

29 OSK: Reasons to Invest 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 Evaluating acquisition environment Non-defense recovery Broad defense opportunities Global growth Optimize operations 29

30 For information contact: Patrick Davidson Vice President, Investor Relations Tina Schmiedel Director, Investor Relations

31 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) 31

32 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 32