ISI Conference March 8, 2011

Transcription

1 ISI Conference March 8, 2011 Wilson Jones Executive Vice President and President, Access Equipment Pat Davidson Vice President, Investor Relations

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 FY10: Strong Performance 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 History of strong shareholder value creation 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. See Appendix. 6

7 Revenue Growth $12B 10 SALES (billions) FISCAL YEAR 7

8 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 8

9 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 9

10 Recent Operating Highlights Completed delivery of original 8,079 M-ATVs Received orders for M-ATV variants and bolt-on protection kits FMTV ramping up Program-to-date ~$2.4 billion in contracts Includes deliveries for FY12-FY13; expect more than original bid quantity Access equipment orders from external customers doubled in Q1 FY11 vs. Q1 FY10 North America and emerging markets driving increase Disappointing results at fire & emergency and commercial segments Challenging market conditions continue Implementing additional cost reductions Maintaining commitment to new product development 10

11 Agenda I. Who We Are II. III. IV. 11

12 Going Global Improved Operations and Lower Costs Non-Defense Markets Recovering New Program Opportunities 12

13 Fiscal 2011: A Strong Transition Year Preparing for return to acquisitions Continued debt reduction, stronger balance sheet Non-defense businesses transitioning to growth Solid defense performance YoY, excluding M-ATV 13

14 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 14

15 Agenda I. Who We Are II. III. IV. 15

16 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 16

17 DEFENSE Defense Outlook Lack of FY11 DoD budget may impact timing of fiscal 2011 sales FY12 budget request levels a mixed bag FMTV FHTV Visibility into 2015 Competing for broad array of contracts 17

18 DEFENSE Many Defense Opportunities Additional M-ATV variants/orders International opportunities Additional FMTV orders Bridge contract for FHTV Humvee and other recap Technology insertion/ block modifications MRAP sustainment Remanufacturing JLTV 18

19 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 19

20 ACCESS EQUIPMENT Industry Data Strengthening Encouraging Market Indicators: Aging fleets and rising values Average Age (in months) AWP Articulating Boom 54.2 AWP Scissor Lifts 52.9 AWP Telescopic Boom 57.6 Used Equipment Values (OLV) +6.6% 6 months +2.8% 6 months +6.2% 6 months Source: Rouse Asset Services, January

21 FIRE & EMERGENCY Premium Industry Brands Global leader in firefighting & emergency vehicles Innovative products and features Robust new product pipeline Growing international profile 21

22 FIRE & EMERGENCY Market Gains, Global Opportunities Substantial global opportunities International airport growth Desire for technology in emerging markets Recovering broadcast demand U.S. fire truck market sales at historically low levels Pierce gaining share despite weak municipal spending 30% of sales to new customers 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 U.S. Recovery and Emerging Markets Driving 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 24

25 Agenda I. Who We Are II. III. IV. 25

26 Clear Performance Goals >10% annual organic sales growth >10% consolidated operating income margin >15% ROIC >15% EPS growth and Record of Achievement 26

27 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 Preparing for return to acquisitions Non-defense recovery Broad defense opportunities Global growth Optimize operations 27

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

29 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) 29

30 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 30