isi conference march 8, 2011s2.q4cdn.com/024929968/files/doc_presentations/osk_isi_030811.pdf ·...

ISI ConferenceMarch 8, 2011

Wilson JonesExecutive Vice President and President, Access Equipment

Pat DavidsonVice President, Investor Relations

ISI CONFERENCE MARCH 2011

Forward Looking Statements and Discontinued Operations

2

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 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, 2011. The Company disclaims any obligation to update such forward-looking statements.

All operating results included in this presentation reflect results from continuing operations only.

Agenda

I. Who We Are

II. Growth Drivers

III. Business Units

IV. Takeaways

3 ISI CONFERENCE MARCH 2011

Oshkosh Corporation at a Glance

4

Who We Are

Growth Drivers

Business Units

Takeaways

DEFENSE FIRE & EMERGENCY COMMERCIALACCESS EQUIPMENT


A Portfolio of Market Leaders

5

GLOBAL RANK

NORTH AMERICA RANKAccess Equipment #1

Fire Apparatus #1

Airport Products #1

Heavy Defense Trucks #1(Army & Marines)

Concrete Mixers / Batch Plants #1

Refuse Collection Vehicles #1

Medium Defense Trucks #1(Army starts 2011 & Marines)

Who We Are

Growth Drivers

Business Units

Takeaways



FY10: Strong Performance

6

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.

Who We Are

Growth Drivers

Business Units

Takeaways


Revenue Growth

7

960

2

4

8

$12B

6

10

97 98 00 02 05 07 0999 01 03 04 06 08 10

FISCAL YEAR

SALE

S (b

illion

s)

Who We Are

Growth Drivers

Business Units

Takeaways


Cash Generation

8

0

Sales

150

300

600

$900

450

750

FRE

E C

AS

H F

LOW

(m

illion

s)

YEAR

Strong track record of free cash flow

0

2

4

8

$12B

6

10

SALE

S (b

illion

s)

96 97 98 00 02 05 07 0999 01 03 04 06 08 10

Free Cash Flow

Who We Are

Growth Drivers

Business Units

Takeaways

Free Cash Flow is a non-GAAP number – See Appendix


OSK Greatly Outperforms Benchmarks

9

Mid 400S&P 500OSK0

800

1,600%

400

1,200

Ret

urn

(%)

Shareholder return from Sept 30, 1996 to Sept 30, 2010

Who We Are

Growth Drivers

Business Units

Takeaways

DOW

Source: Thomson Financial


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

Recent Operating HighlightsWho We Are

Growth Drivers

Business Units

Takeaways


Agenda

11

I. Who We Are

II. Growth Drivers

III. Business Units

IV. Takeaways



Growth Drivers

12

New Program Opportunities

Going Global

Improved Operations and

Lower Costs

Non-Defense Markets

Recovering

Who We Are

Growth Drivers

Business Units

Takeaways


Fiscal 2011: A Strong Transition Year

13

Who We Are

Growth Drivers

Business Units

Takeaways

Solid defense performanceYoY, excluding M-ATV

Non-defense businesses transitioning to growth

Continued debt reduction, stronger balance sheet

Preparing for return to acquisitions


2011 Focus Areas: Positioning the Company for Growth

14

Optimizing Operations

Global Expansion Driven by

BRICsMarket

Leading Innovations

Investing in People and Systems

Customer Engagement

Who We Are

Growth Drivers

Business Units

Takeaways


Agenda

15

I. Who We Are

II. Growth Drivers

III. Business Units

IV. Takeaways



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

Who We Are

Growth Drivers

Business Units

Takeaways

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

DEFENSEWho We Are

Growth Drivers

Business Units

Takeaways


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

DEFENSEWho We Are

Growth Drivers

Business Units

Takeaways


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

ACCESS EQUIPMENTWho We Are

Growth Drivers

Business Units

Takeaways


Industry Data Strengthening

20

ACCESS EQUIPMENT

Encouraging Market Indicators: Aging fleets and rising values

Source: Rouse Asset Services, January 2011.

AWP – Articulating Boom 54.2

AWP – Scissor Lifts 52.9

AWP – Telescopic Boom 57.6

+6.6%6 months

+2.8%6 months

+6.2%6 months

Average Age(in months)

Used Equipment Values(OLV)

Who We Are

Growth Drivers

Business Units

Takeaways


Premium Industry Brands

Global leader in firefighting & emergency vehicles

Innovative products and features

Robust new product pipeline

Growing international profile

21

FIRE & EMERGENCYWho We Are

Growth Drivers

Business Units

Takeaways


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

FIRE & EMERGENCYWho We Are

Growth Drivers

Business Units

Takeaways


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

COMMERCIALWho We Are

Growth Drivers

Business Units

Takeaways


Domestic mixer replacement at unsustainably low levels

Expanding international markets

Growing sales of green, energy efficient solutions

U.S. Industry Mixer Sales

0

2,000

4,000

8,000

10,000

6,000

FISCAL YEAR

TOTA

L U

NIT

S

96 97 98 00 02 05 07 0999 01 03 04 06 08 10

U.S. Recovery and Emerging Markets Driving Growth

24

COMMERCIALWho We Are

Growth Drivers

Business Units

Takeaways

Source: TMMB –Truck Mixer Manufacturers Bureau


Agenda

25

I. Who We Are

II. Growth Drivers

III. Business Units

IV. Takeaways



Clear Performance Goals…

26

>15% ROIC

>10% annual organic sales growth

Who We Are

Growth Drivers

Business Units

Takeaways

>15% EPS

growth>10% consolidated

operating income margin

…and Record of Achievement


OSK: Reasons to Invest

27

Leader in KeyMarkets

Strong Cash Generation and Balance Sheet

Growth Drivers

Generally #1 share

Industry innovator

Strong distribution networks

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

Who We Are

Growth Drivers

Business Units

Takeaways

For information contact:

Patrick DavidsonVice President, Investor Relations

920 966-5939

[email protected]

Tina SchmiedelDirector, Investor Relations

920 233-9235

[email protected]


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:

2010 2009

Non-GAAP operating income 1,419.7$ 210.7$ 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 813.1$ -$ Intangible asset impairment charges (25.6) (1,190.2) Income tax benefit associated with intangible asset impairment charges 5.4 23.2 GAAP income (loss) from continuing operations, net of tax 792.9$ (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)$


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

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Net cash provided (used) by operating activities (16.2)$ 65.8$ 79.9$ 39.0$ 49.7$ (8.4)$ 264.0$ 105.3$ 134.9$ 212.3$ 177.4$ 406.0$ 390.4$ 898.9$ 619.7$ 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)$ 242.6$ 74.2$ 95.9$ 153.1$ 94.3$ 293.4$ 284.8$ 837.8$ 536.5$

(1) Excludes equipment held for rental

isi conference march 8, 2011s2.q4cdn.com/024929968/files/doc_presentations/osk_isi_030811.pdf ·...

Documents