Oshkosh Corporation Analyst Day
September 14, 2012
2012 Oshkosh Corporation Analyst Day September 14, 2012 Pat Davidson Investor Relations
Oshkosh Corporation Analyst Day
September 14, 2012
2012 Oshkosh Corporation Analyst Day September 14, 2012 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 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 cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially in the current environment where there are conflicting signs regarding the future global economic outlook; the expected level and timing of the U.S. Department of Defense (DoD) procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; risks that profit on the definitization of contracts with the DoD could differ from the Company’s estimates; increasing commodity and other raw material costs, particularly in a sustained economic recovery; the ability to increase prices to raise margins or offset higher input costs; risks related to the Company’s exit from its ambulance and European mobile medical businesses, including the amounts of related costs and charges; risks related to facilities consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; 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 Company or equity market expectations; 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; risks related to the collectabilityof 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 or shipment delays arising from 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 actions of activist shareholders; and the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation, and disclaims any obligation, to update information contained in this presentation. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.
3 2012 Oshkosh Corporation Analyst Day September 14, 2012 Charlie Szews CEO
Oshkosh Corporation Analyst Day
September 14, 2012
2012 Oshkosh Corporation Analyst Day September 14, 2012 Doubling EPS by FY15
• MOVE strategy expected to Oshkosh Corporation deliver higher margins EPS Opportunity throughout the cycle $4.00 to $4.50 • The recovery from a deep cycle has commenced and is expected to overcome defense downturn $2.05 to $2.15 • Oshkosh has the processes 23%-30% and team to deliver MOVE CAGR
FY12E(1) FY15E
(1) Excludes costs to exit ambulance and European mobile medical businesses
5 2012 Oshkosh Corporation Analyst Day September 14, 2012 Agenda
Welcome Pat Davidson
Doubling into a Global Industrial Charlie Szews
MOVE Delivers Wilson Jones
Frank Nerenhausen John Urias Supporting Our Recovery Outlook Jim Johnson Todd Fierro Processes and Team to Deliver MOVE: • Quality & Continuous Improvement Colleen Moynihan • Global Procurement & Supply Chain Greg Fredericksen • Innovation Gary Schmiedel
Financial Summary Dave Sagehorn
Concluding Remarks Charlie Szews
Q & A Panel All Presenters
6 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh’s Rich History
2012 Oshkosh Corporation Analyst Day September 14, 2012 Mission Driven
• 95 years performing mission critical work • Innovative, high performance culture • 13,000 dedicated employees working for customers around the world • Board of Directors and management team committed to driving shareholder value
8 2012 Oshkosh Corporation Analyst Day September 14, 2012 Moving the World at Work
• Our vehicles move people and materials at work – Most protect people or property – Many lift people or property – All do so safely and efficiently • Often share common customers/ distribution channels – JLG, Jerr-Dan, IMT, McNeilus and Pierce sell into rental channel – Every segment sells to the U.S. federal government • Share common components/suppliers, technologies and manufacturing processes
9 2012 Oshkosh Corporation Analyst Day September 14, 2012 History of Growth and Successful Transition
Annual Revenues $10.0
$8.0
$6.0
$4.0
($ in Billions) $2.0
$0.0 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
• Predominantly a small specialty truck company (1917 – mid 1990s) • Diversification strategy implemented in 1996 to grow organically and by acquisition; grew into Fortune 500 (#337 in 2011) • Expanding global industrial company prior to recession • Economic downturn of 2008-2010 and Middle East conflicts resulted in a more defense-centric company
(1) From FY96 through FY08
10 2012 Oshkosh Corporation Analyst Day September 14, 2012 Doubling into a Global Industrial
2012 Oshkosh Corporation Analyst Day September 14, 2012 Transitioning Again – Global Industrial
Non-Defense Sales Become Significant Majority of Revenue by FY15
FY10 Sales FY15 Sales (1) Defense Non-Defense
• Defense led strong results in FY10 and FY11 • Defense spending downturn requires another transition • Industrial recovery now in early stages • MOVE strategy expected to drive global expansion, higher margins and superior shareholder returns over the cycle • Defense expected to remain profitable on significantly lower volumes
(1) Based on Company estimates on September 14, 2012
12 2012 Oshkosh Corporation Analyst Day September 14, 2012 The Route to Doubling Earnings
2012 Oshkosh Corporation Analyst Day September 14, 2012 MOVE – The Right Strategy
• Focuses on drivers that create highest shareholder value • Recognizes constraints of markets, balance sheet and business valuations • Expected to drive higher incremental margins across non-defense businesses over cycle • Targeting 23%-30% CAGR in EPS through FY15
14 2012 Oshkosh Corporation Analyst Day September 14, 2012 Market Recovery Overcomes Defense Downturn
• Key North American markets in slow recovery – Old fleets need to be renewed – Construction recovery expected to strengthen in FY13 and beyond • Mining, infrastructure and economic development aiding key Oshkosh markets in Latin America, Australia, Middle East & Asia • European recovery delayed, but expected to extend AWP cycle • Green solutions, rising safety standards and productivity requirements suggest stronger demand for Oshkosh products • Oshkosh will manage its defense business to remain profitable
15 2012 Oshkosh Corporation Analyst Day September 14, 2012 Leveraging a Common Structure: Oshkosh Operating System
• Customer-centric application • Improves processes needed to of lean principles deliver key elements of MOVE – Sets guiding principles for • Supports drive to improve relationships with customers cash flow • Implementation gaining momentum • Company-wide foundation for building shareholder value
16 2012 Oshkosh Corporation Analyst Day September 14, 2012 Focused Board and Management Team
• Successfully navigated through unprecedented economic conditions • Diverse & complementary backgrounds – Continually developing/acquiring talent • Incentive compensation objectives strongly aligned with shareholder interests • Acting decisively for shareholders
17 2012 Oshkosh Corporation Analyst Day September 14, 2012 MOVE is Delivering in FY12
• Raised outlook by one-third as year Total Shareholder Return progressed (CAGRs) Since 1996(2) • Capturing access equipment recovery OSK 19.2% • Addressing challenges All Peers 10.9% – FMTV profitable; margins have continued to improve S&P 500 6.6% – Exiting underperforming non-core businesses • International sales up 31% YTD(1) FY12 – 750 M-ATVs for U.A.E. for FY13 Total Shareholder Return Calendar YTD 2012(2) • Accelerating Oshkosh Operating System deployment OSK 24.8% • Exercising prudent capital allocation strategy
(1) Through June 30, 2012 (2) Through September 7, 2012
18 2012 Oshkosh Corporation Analyst Day September 14, 2012 Poised to Deliver Results
Oshkosh Corporation EPS Opportunity Industry Leading Brands $4.00 to Access Equipment #1 Global $4.50
Fire Apparatus #1 Global
Airport Products #1 Global $2.05 to $2.15 Defense TWV #1 Global 23%-30% CAGR Concrete Mixers #1 Americas
Refuse Collection #1 Americas FY12E(1) FY15E
• MOVE strategy expected to deliver higher margins throughout cycle • Market recovery, from deep cycle, has commenced – Is expected to overcome defense downturn • Oshkosh processes and team support execution of MOVE
(1) Excludes costs to exit ambulance and European mobile medical businesses 19 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Corporation Analyst Day
September 14, 2012
2012 Oshkosh Corporation Analyst Day September 14, 2012 Wilson Jones President and COO
Oshkosh Corporation Analyst Day
September 14, 2012
2012 Oshkosh Corporation Analyst Day September 14, 2012 Doubling EPS by FY15
• MOVE strategy expected to Oshkosh Corporation deliver higher margins EPS Opportunity throughout the cycle $4.00 to $4.50 • The recovery from a deep cycle has commenced, and is expected to overcome defense downturn $2.05 to $2.15 • Oshkosh has the processes 23%-30% and team to deliver MOVE CAGR
FY12E (1) FY15E
(1) Excludes costs to exit ambulance and European mobile medical businesses
22 2012 Oshkosh Corporation Analyst Day September 14, 2012 Our Commitment to Deliver
23 2012 Oshkosh Corporation Analyst Day September 14, 2012 Market Recovery and Growth
Non-Defense Revenue (1) Non-Defense Operating (1) 6 ($ in Billions) Income ($ in Millions)
400
350 4 300
250
~10% CAGR 200 2 (FY12-FY15) 150 ~$220M 100 Opportunity (FY12-FY15) 50
0 0 FY11 FY12E FY15E FY11 FY12E (2) FY15E
(1) Reflects estimated benefits of market recovery captured in financial estimates. Does not include benefits of other MOVE initiatives. Market recovery operating income growth opportunity from FY11 to prior peak sales levels for non-defense segments estimated at ~$500 million. (2) Excludes costs to exit ambulance and European mobile medical businesses 24 2012 Oshkosh Corporation Analyst Day September 14, 2012 Deliver with Strong Sales, Inventory and Operations Planning
• Disciplined demand planning – Correlate demand factors, voice of customer and order pipeline – Weekly course corrections – Right inventory in right regions globally Volume • Integrated teams focused on and Margin lead time reduction Capture – Reducing WIP & inventory – Increasing flexibility to react
• Strong incremental revenue opportunities
25 2012 Oshkosh Corporation Analyst Day September 14, 2012 Optimize Cost and Capital Structure Targeting 250 bps incremental operating income margin by FY15 (1)
• Product, process and overhead improvements
• Dedicated cost reduction teams
• No compromises: reduce cost structure with no negative impact to customers or brand
• Incrementally improved margins in economic recovery
Mission Deployment Center • Opportunity not dependent on volume increases
(1) Versus FY11 26 2012 Oshkosh Corporation Analyst Day September 14, 2012 Optimize Cost and Capital Structure Measure Processes, Drive Results
• Common tools and KPIs
27 2012 Oshkosh Corporation Analyst Day September 14, 2012 Delivering Results - Product
Previous offering New offering
Weight Reduction Industry’s Lightest Unit
28 2012 Oshkosh Corporation Analyst Day September 14, 2012 Breakdown of Major Sub-systems Redesign
New Platform ++ Weight Reduction
Previous offering New Frame +++ Weight Reduction
New Axles and Spindles
New CWT and Rear Hoods +++ Weight Reduction
New Turntable ++ Weight Reduction
29 2012 Oshkosh Corporation Analyst Day September 14, 2012 Redesign Reduces AWP Weight “Moves to best-in-class weight”
Dramatic Weight Reduction
Pre MOVE Post MOVE Comp 1 Comp 2 Comp 3 Comp 4 AWP AWP
30 2012 Oshkosh Corporation Analyst Day September 14, 2012 Delivering Results - Process Improvement
• Commercial Segment 4 in 1 line efficiency has improved by more than 20% • Commonized platforms simplify fixturing • Flexible fixturing enables multiple products to be produced on one line to free up Realizing strong efficiencies with 4 in 1 line space
31 2012 Oshkosh Corporation Analyst Day September 14, 2012 Delivering Results - Overhead Reduction
• Transferred 450/510 AWP production from Belgium to Romania, permitting closure of 25,000 sq. ft. facility
• Achieving quality, delivery and cost targets – Defects per unit well below goal – Positive trend for on time delivery – 109% of labor savings goal attained
• Additional insourcing possibilities
32 2012 Oshkosh Corporation Analyst Day September 14, 2012 Optimize Cost Progression
Targeted Operating Income Margin Impact
250 250 bps
200
150 ~130 bps
100 ~75 bps
50 ~5bps
0 FY12E FY13E FY14E FY15E (Basis Points Operating Income / Sales)
• Targeting 250 bps of consolidated operating income margin improvement by FY15 in addition to absorption benefit from higher sales volume(1)
• Expect annualized 60+ bps impact for FY13 from actions implemented YTD in FY12
(1) Net of investment costs and compared with consolidated FY11 operating income margins.
33 2012 Oshkosh Corporation Analyst Day September 14, 2012 Value Innovation (1) Driving ~$350 million incremental annual revenue by FY15
$400 Incremental Revenue vs FY12E ($ in Millions) ~$350
$300 ~$250
$200 ~$175
(Millions of Dollars) $100
$0 FY13E FY14E FY15E • Disciplined, resourced execution of multi-generational product and technology plans in all segments
• Integrated project teams charged with improving product launch processes and adherence to project KPIs
• Customer First focus driving all innovation
(1) Compared with FY12.
34 2012 Oshkosh Corporation Analyst Day September 14, 2012 Value Innovation - RS Scissor
• Opens new markets for JLG
• Innovation targeting price-value segment
• Field validation underway
• Global customers pleased with RS quality and value
New RS Tianjin Scissor Facility
35 2012 Oshkosh Corporation Analyst Day September 14, 2012 Global Presence
Countries where Oshkosh has a presence
36 2012 Oshkosh Corporation Analyst Day September 14, 2012 Emerging Market Expansion > 25% of revenues by FY15 (30% by FY16)
• Expanding sales, service and manufacturing operations • Forward deploying business development professionals for defense • Developing products for global markets • Leveraging international facilities across segments
Sales Outside the U.S. >25%
~20% 17%
~10%-15% CAGR (FY12-FY15) (Percent of Revenue) (Percent of
FY11FY12E FY15E
37 2012 Oshkosh Corporation Analyst Day September 14, 2012 MOVE-ing Forward
• Right Strategy
• Recovery has Begun
• Right Processes & Team
38 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Corporation Analyst Day
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40 2012 Oshkosh Corporation Analyst Day September 14, 2012 Frank Nerenhausen Access Equipment
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2012 Oshkosh Corporation Analyst Day September 14, 2012 The Access Equipment Advantage
2012 Oshkosh Corporation Analyst Day September 14, 2012 The Access Equipment Advantage
Global Leader Global Market in Access Presence Equipment
Flexible Industry Manufacturing Leading and Supply Innovation Chain
Full Spectrum Superior Parts, Service, Product Range and Support
JLG is positioned for sustained industry leading performance
43 2012 Oshkosh Corporation Analyst Day September 14, 2012 Broadest Product Portfolio: Elevating People and Materials Safely and Efficiently
Straight Boom LiftsArticulated Boom Lifts Scissor Lifts Vertical Lifts JLG Aerial Work Platforms Platform Heights 6’ – 150’
JLG Skytrak Lull Compact Military
Telehandlers Max Lift Capacity 5,500lb – 12,000lb Max Lift Height 18’ – 55’
Wreckers Carriers Rotators
Jerr-Dan Recovery Vehicles
Product Innovation: A clear JLG advantage
44 2012 Oshkosh Corporation Analyst Day September 14, 2012 Industry Leading Lifecycle Solutions: A Clear JLG Advantage
Deep ExperienceLeading Systems and Processes World Class Solutions
Worldwide Parts and Customer Support Enabling Technology Next Phase Service Network • Cutting edge training • Online Express of Equipment Life • Full range of JLG program • Industry-leading call centers • Mobile Apps • Pre-owned and competitive parts • Telematics • Reconditioning • Extended service network
Deep installed base provides runway for growth
45 2012 Oshkosh Corporation Analyst Day September 14, 2012 Global Market Presence: A Clear JLG Advantage
3 Regional Headquarters 9 Manufacturing Facilities 19 Sales and Service Centers Customer Global Flexible Leveraged Support in Product Global Global 4 Parts Distribution Centers all Regions Platforms Operations Supply 3 Engineering Centers Chain
46 2012 Oshkosh Corporation Analyst Day September 14, 2012 Supporting the Outlook
2012 Oshkosh Corporation Analyst Day September 14, 2012 North American Rental Companies are Refreshing Their Fleets, Increasing Market Penetration
Total Construction Spending NA Rental Equipment Access - Fleet Age (Y-O-Y % Change) (AWP and TMH) 20 60
10 55
0 50
(% Change) (% -10 45 (Age in Months) in (Age -20 40 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2009 2010 2011 2012 United States Canada Age (months)
Source: IHS Global data/projections Source: Rouse Rental Report
NA Rental Equipment Company CapEx NA Rental Equipment Company Fleet Utilization (Y-O-Y % Change) 75 150 120 70 90
65 60 30 60 0 ‐30 (% Change) (%
(% Utilization) (% 55 ‐60
50 ‐90 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 2004 2005 2006 2007 2008 2009 2010 2011 Ind. Avg. CapEx Based on International Rental News/Dan Kaplan sample of medium to large NA Based on International Rental News/Dan Kaplan sample of medium to large NA rental rental equipment companies (United Rental, RSC, HERC, Ameco, Neff). equipment companies (United Rental, RSC, H&E, HERC).
48 2012 Oshkosh Corporation Analyst Day September 14, 2012 North America – Strong Rental and Market Conditions, Sustained Growth Cycle • Favorable construction spending outlook • Rental industry robust FY15E still – Fleet age 55+ months (near peak) well short of prior peak unit – Utilization near 70% (trending up) volume – Strong CapEx plans • Rental penetration continues upward trajectory • Energy projects, industrial retooling driving demand
(1) Telehandlers AWPs 97 80 80 75 70 73
80 67 42 60 57 59 59 17 16 35
(Units in Thousands) 17 13 12 14 16 20 13 447 13 FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15E
Source: AEM data and Company estimates (1) Prior Telehandler peak volume of 23,000 units in FY06
49 2012 Oshkosh Corporation Analyst Day September 14, 2012 EAME – Some Bright Spots Despite Economic Uncertainty
• Nordics, Benelux and Germany • Russia (infrastructure), South Africa (mining) and Middle East (energy and infrastructure) FY15E AWP volume ~50% of peak; • Relative stability in agriculture Telehandler volume higher as 60% of • Economic uncertainty in Southern Europe demand comes from Ag Telehandlers AWPs 94 JLG primarily serves the AWP market in EAME
54 55 61 46 49 51 28 35 24 30 19 20 21 15 12
(Units in Thousands) 40 27 29 30 31 33 20 18
FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15E
Source: AEM data and Company estimates
50 2012 Oshkosh Corporation Analyst Day September 14, 2012 Latin America – Brazil Remains Attractive, Construction Strengthening Throughout
• Major projects with over $500 billion in investment expected in Brazil Demand driven • Rental concept strengthening by Olympics, FIFA World Cup • Product adoption increasing in Mexico, Chile and and mining Panama • Inconsistent supply of capital Telehandlers AWPs 13 11 10 8 7 11 9 8 4 4 6 2 5
(Units in Thousands) 3 3 2 2 2 2 2 2 1 0 1 FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15E
Source: AEM data and Company estimates
51 2012 Oshkosh Corporation Analyst Day September 14, 2012 Asia Pacific – Australia Steady, China in Early Phase of Adoption
• Australia energy, mining and supporting infrastructure • Rental concept emerging in China Product adoption drives growth • Vietnam, Indonesia and Malaysia showing potential faster than GDP • Singapore adoption growing increase • Slow recovery in Japan and South Korea
Telehandlers AWPs
JLG – Led 17 Formation of China Work Safety 15 Committee (WSC) 14 12 10 14 9 6 8 13 13 9 11 6 8
(Units in Thousands) 5 3 1 2 1 1 1 1 2 FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15E
Source: AEM data and Company estimates
52 2012 Oshkosh Corporation Analyst Day September 14, 2012 Financial Outlook
2012 Oshkosh Corporation Analyst Day September 14, 2012 Access Equipment Sales Outlook(1)
~$4.0 $4.0
$3.5
$3.0 ~$2.8 $2.8 – $3.0
$2.5 $2.0 $2.0
$1.5
(Sales in Billions) $1.0
$0.5
$0.0 FY11 FY12E FY13E FY15E
• Cost pass throughs of emission standards changes, Caterpillar telehandler volume and pricing expected to lift sales beyond $3.2 billion prior peak • Sales growth expected to accelerate in FY14, and particularly in FY15, as fleet expansion follows U.S. nonresidential construction recovery
(1) Sales to external customers
54 2012 Oshkosh Corporation Analyst Day September 14, 2012 Access Equipment Operating Income Margin Outlook
20.0% 18.0% 16.0% ~15.0% 14.0% 12.0% 9.5%-10.0% 10.0% ~7.7% 8.0% 6.0% 4.0% 3.2% (Operating Income Margin %) (Operating Income Margin 2.0% 0.0% FY11 FY12E FY13E FY15E
• Steady margin improvement expected over next three years • Operating income margin in the last cycle peaked at 11.3% • Operating income margins reduced by ~ $50 million of annual intangible amortization
55 2012 Oshkosh Corporation Analyst Day September 14, 2012 Access Equipment Operating Income Margin Drivers
20.0%
18.0% 16.0% ~15.0% 14.0%
12.0% 11.3%
10.0% ~7.7% 8.0%
6.0%
4.0%
(Operating Income Margin %) (Operating Income Margin 2.0%
0.0% Prior Peak FY12E "M" "O" "V" "E" FY15E (FY08) Initiatives Initiatives Initiatives Initiatives • MOVE impact expected to accelerate in FY14 and FY15 as FY12 and FY13 investments provide returns • Numerous “O” initiatives already providing benefits
56 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Corporation Analyst Day
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2012 Oshkosh Corporation Analyst Day September 14, 2012 John Urias Defense
Oshkosh Corporation Analyst Day
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2012 Oshkosh Corporation Analyst Day September 14, 2012 The Oshkosh Defense Advantage
2012 Oshkosh Corporation Analyst Day September 14, 2012 The Oshkosh Defense Advantage
Defense Service, Engineering Lifecycle & Product Sustainment Development
Scalable Vehicle Fleet Manufacturing Modernization & Operations
Vertical Defense Integration of Program Specialized Management Components
Defense industry expertise that leverages the full capabilities of Oshkosh Corporation
60 2012 Oshkosh Corporation Analyst Day September 14, 2012 Leading Global Defense Tactical Vehicle Portfolio
Heavy Equipment Palletized Load Logistics Vehicle System Heavy Expanded Mobility Transporter (HET) System (PLS) Replacement (LVSR) Tactical Truck (HEMTT)
Heavy
Family of Medium Tactical Medium Tactical Vehicle MRAP All-Terrain Vehicle M-ATV Special Vehicles (FMTV) Replacement (MTVR) (M-ATV) Base Variant Forces Variant
Medium & MRAP
Light Combat Tactical All- HMMWV Modernization Ground Mobility SandCat Tactical Terrain Vehicle (L-ATV) Solutions Vehicle (GMV) 1.1 Protector Vehicle (TPV)
Light
61 2012 Oshkosh Corporation Analyst Day September 14, 2012 L-ATV The Oshkosh JLTV Solution
• The future of light tactical vehicles
• JLTV EMD contract award – 22 prototypes – Testing and evaluation
• Oshkosh JLTV solution – Oshkosh TAK-4i intelligent independent suspension system – Latest automotive technologies
The Oshkosh JLTV solution was – Advanced crew protection designed with a purpose – to keep system Warfighters safe on future battlefields with unpredictable terrain, tactics, and threats.
62 2012 Oshkosh Corporation Analyst Day September 14, 2012 Defense Product Lifecycle Solutions
Military ExperienceLean Processes Quality Management System
Recapitalization Reset Tech Upgrades/Kits Field Maintenance In-factory modernization In-theater or in-factory Adding new capability on and Support to the latest configuration; upgrade to restore capability an urgent needs basis Field Service Reps provide returned with zero technical support in-theater; mile/hour warranty full range of logistics and training solutions support operational readiness
Defense vehicle engineering, design and supply chain expertise creates differentiation for our aftermarket solutions
63 2012 Oshkosh Corporation Analyst Day September 14, 2012 Supporting the Outlook
2012 Oshkosh Corporation Analyst Day September 14, 2012 Global Defense Spending Forecast
West Europe East Europe Russia & CIS 2012a 63,870 2012a 6,625 2012a 21,567 North America 2017f 63,772 2017f 6,994 2017f 28,108 2012a 206,591 CAGR ‐0.03% CAGR 1.09% CAGR 5.44% 2017f 198,135 12‐17(f) 363,249 12‐17(f) 40,232 12‐17(f) 150,570 CAGR ‐0.83% 12‐17(f) 1,224,340 MENA South Europe East Asia 2012a 37,953 2012a 11,205 2012a 23,787 2017f 44,905 2017f 12,360 2017f 32,987 CAGR 3.42% CAGR 1.98% CAGR 6.76% 12‐17(f) 248,005 12‐17(f) 68,893 12‐17(f) 172,063 South Asia Latin America 2012a 17,951 South East Asia 2012a 14,916 2017f 25,210 2012a 8,759 2017f 20,280 CAGR 7.03% 2017f 11,696 CAGR 6.34% 12‐17(f) 129,020 CAGR 5.96% 12‐17(f) 103,809 12‐17(f) 129,020
- U.S. Defense spending represents nearly 50% of global spend 2012-2017 - Regional spending increases driven by air and sea - Ground vehicle opportunities exist
Source: Jane’s Defence Budgets, June 13, 2012
65 2012 Oshkosh Corporation Analyst Day September 14, 2012 U.S. DOD Program (1) Acquisition Budget
Proposed FY13 Weapon Systems Proposed FY13 Ground Systems Base & OCO: $178.8 Billion Base & OCO: $10.9 Billion Combat Ship-building Weapons, Vehicles, & Maritime, Heavy Space $1.0 $1.7 $22.6 Tactical Systems, $8.0 Aircraft, $47.6 Vehicles, $1.0 RDT&E S&T, Medium $11.9 Tactical C4I Systems, Vehicles, $8.2 $0.4
Mission Ground Support, $50.4 Systems, Light Missile $10.9 Defense, $9.0 Tactical Missiles & Support Vehicles, Munitions, Equipment, JLTV and GMV $0.5 $10.2 $6.3 are only new start programs in next three years
45% reduction in tactical vehicle acquisition from FY13-17(1) reflects new Defense strategy, lower operational tempo, and force reduction
(1) Based on FY13 Presidential Budget request; does not reflect Sequestration impact 66 2012 Oshkosh Corporation Analyst Day September 14, 2012 Macro Defense Market Trends
Offset U.S. Competitive U.S. “I've made clear, and Req’t Acquisition Landscape Defense Reform Spending I'll continue to do so, that if sequestration is allowed to go into effect, it'll be a disaster for national defense and it would be a disaster, frankly, for defense communities as well.”
Leon Panetta International Export Policies U.S. Defense Secretary Business to Support U.S. Vertical Opportunities Industrial Base Reset Integration
Macro market trends will redefine the competitive landscape for vehicle contracts of all types and sizes
67 2012 Oshkosh Corporation Analyst Day September 14, 2012 Adapting to the Domestic Defense Spending Downturn
Current Operations Profile Future Operations Profile
Aftermarket & New Vehicle Modernization Production Aftermarket & Modernization New Vehicle Production Tech & Product Tech & Product Development Development
HEAVY, MEDIUM & MRAP VEHICLES MEDIUM, MRAP & LIGHT VEHICLES – Compete to win in the Light vehicle segment – Optimize our cost structure
68 2012 Oshkosh Corporation Analyst Day September 14, 2012 Capture International Business
Oshkosh Defense Vehicles Operating in more than 20 Countries
Tanker HET HEMTTMTVR MTT FMTV M-ATV TPV
69 2012 Oshkosh Corporation Analyst Day September 14, 2012 Deliver Product Lifecycle Solutions
Technology kits to modernize Total lifecycle support – existing vehicle fleets anywhere in the world
0 Operational Independent Readiness Suspension Upgrade Kits
Vehicle Service Years Field Service
Crew 10 Protection Field Upgrades Upgrade Kits
Reset Unmanned Ground 20 Vehicle Recapitalization Upgrade Kits
70 2012 Oshkosh Corporation Analyst Day September 14, 2012 Financial Outlook
2012 Oshkosh Corporation Analyst Day September 14, 2012 Baseline Defense Revenue
Net Sales ($ in Billions) JLTV EMD GMV 1.1 Sales Baseline(1) Target HMMWV Upgrades $8.0 Int’l M-ATV $7.0 MSVS $6.0 P-19R, and More $5.0 $4.0 $3.0 $1.5-$2.0 $2.0 $0.8-$1.5 $1.0 $0.0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15E
Family of Heavy Tactical Vehicles (FHTV)
Logistics Vehicle System Replacement (LVSR) Medium Tactical Vehicle Replacement (MTVR)
M-ATV Int’l M-ATV and Other Family of Medium Tactical Vehicles (FMTV)
SandCat
Vehicle Support, Aftermarket and Lifecycle Sustainment Services
(1) Baseline assumed in Oshkosh’s EPS outlook
2012 Oshkosh Corporation Analyst Day September 14, 2012 72 Defense Sales Outlook
$5.0
$4.5 $4.4
$4.0 ~ $3.9
$3.5 $3.3 - $3.4
$3.0
$2.5 $2.0 Target $2.0 $1.5 Target $1.5 (1) (Sales in Billions) $1.5 Baseline $1.0
$0.8 Baseline (1) $0.5
$0.0 FY11 FY12E FY13E FY14E FY15E • Baseline sales in FY15E, assuming no contract wins, decline to $800 million • Target sales for FY15E is $1.5 billion based on initiatives to drive global and aftermarket sales
(1) Baseline assumed in Oshkosh’s EPS outlook
73 2012 Oshkosh Corporation Analyst Day September 14, 2012 Defense Operating Income Margin Outlook
16.0%
14.0% 12.4% 12.0%
10.0%
8.0%
6.0% ~5.5% 5.0%-5.5% Baseline 4.0% ~3.0% Baseline ~2.0% (Operating Income Margin %) (Operating Income Margin 2.0%
0.0% FY11 FY12E FY13E FY14E FY15E • Company will adjust cost structure as needed to remain profitable • New contract wins present upside to Baseline
74 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Corporation Analyst Day
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76 2012 Oshkosh Corporation Analyst Day September 14, 2012 Jim Johnson Fire & Emergency
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2012 Oshkosh Corporation Analyst Day September 14, 2012 The Fire & Emergency Advantage
2012 Oshkosh Corporation Analyst Day September 14, 2012 The Fire & Emergency Advantage
Innovation #1 Brands Leader
Unrivaled Premier Product Distribution Performance and Service
Leading global provider of specialty vehicles that serve, protect and save lives
79 2012 Oshkosh Corporation Analyst Day September 14, 2012 Delivering Market Leading Products
Custom PumpersAerials Rescues Commercial Pumpers
Pierce Fire Apparatus
Aircraft Rescue & Firefighting Airport Snow Removal
Oshkosh Airport Products
Broadcast Command Military Simulators
Frontline Communications Products
Diverse solutions for fire, emergency and broadcast professionals
80 2012 Oshkosh Corporation Analyst Day September 14, 2012 Going Global to Offset Domestic Pressure
Added 22 dealers in Asia in past 3 years
Fire & Emergency headquarters Manufacturing facilities Fire and ARFF dealers Snow Removal dealers Frontline dealers Company owned sales/service Changi Airport Commissioning Ceremony, Singapore
81 2012 Oshkosh Corporation Analyst Day September 14, 2012 Leveraging Premier Dealer Network
•Pierce – Domestic – 30 exclusive dealers with ~300 sales representatives – 60 service centers with more than 600 service technicians – Direct sales to Department of Defense – International dealer network Atlantic Emergency Solutions – Added 11 new dealers in FY12 • Airport – Domestic dealers and direct sales representatives – 60 international sales representatives and dealers • Oshkosh international offices – Dubai, United Arab Emirates – Beijing and Shanghai, China
– Moscow, Russia Oshkosh Warehouse, Singapore – Singapore – New Delhi, India
82 2012 Oshkosh Corporation Analyst Day September 14, 2012 Supporting the Outlook
2012 Oshkosh Corporation Analyst Day September 14, 2012 Domestic Fire Market Drivers Stabilizing
Housing prices and property taxes appear to have bottomed HOUSING PRICES & LOCAL PROPERTY TAXES Recent Headlines
More contract signings point to housing recovery - Associated Press, August 2012
Housing starts projected to rise significantly over next 3 years - Moody’s
Firefighters feel the squeeze of shrinking budgets - Governing magazine
Municipal-debt defaults will remain infrequent and isolated events… - Moody’s
84 2012 Oshkosh Corporation Analyst Day September 14, 2012 Poised for Success in Challenging U.S. Market
U.S. Fire Apparatus Market (Units) • Lower federal funding expected 5,000 Expect U.S. fire to impact FY13 markets to bottom in FY13, modest • Expect modest municipal improvement on the recovery beginning in FY14 4,000 horizon • Improving cost structure
– Exiting under-performing 3,000 businesses – Rightsizing 2,000 • Targeting market share growth of core products – Custom pumpers 1,000 – Aerials 0
Source: Fire Apparatus Manufacturers Association and Company estimates
85 2012 Oshkosh Corporation Analyst Day September 14, 2012 International Market Growth Opportunities
(1) • Expect continued growth in World Air Traffic developing countries 2012 - 2014 Projected Average Annual Growth Rate 12%
– Investing in safety and security 10% – Expanding infrastructure 8% 6% • World air traffic projected to 4% continue growing 2% 0% – Middle East and Asia Pacific expected to increase 8%-10% per year – Driving increased demand for Oshkosh Airport Products
• International customers seeking technologically superior products
Pierce Industrial Pumper, Liaoning Province, China (1) Source: Air Traffic Growth (regional growth in passenger kilometers) per International Civil Aviation Organization
86 2012 Oshkosh Corporation Analyst Day September 14, 2012 Capitalizing on International Opportunities
Recent Headlines Airport conquest Chongqing, accounts in China Strategic Action Plan Europe 17 high rise to Improve Aviation pumpers Safety in Africa -International Civil Aviation Organization
India Invests in Airport Development -Asian Aviation
Oshkosh Fire & Emergency Sales Singapore Surge in China Changi Airport -Fire Engineering Brasilia, Brazil 7 ARFF & Pierce 30 custom China to Build 70 pumpers Airports by 2015 -The Telegraph
Recent orders Pierce Oshkosh Airport
87 2012 Oshkosh Corporation Analyst Day September 14, 2012 Financial Outlook
2012 Oshkosh Corporation Analyst Day September 14, 2012 Fire & Emergency Sales Outlook
$1,000
$900 (1) $800 (1) ~$825 ~$825 $800 $725-$750 $700 $600 $500 $400 $300 (Sales in Millions) $200 $100 $0 FY11 FY12E FY13E FY15E
• Businesses exited represent sales of ~$70M in FY12E and ~$15M in first half of FY13E • Expect domestic fire apparatus to bottom in FY13E then begin slow recovery • Solid airport products and broadcast growth expected from FY13E – FY15E, buoyed by international demand
(1) Includes sales of exited businesses 89 2012 Oshkosh Corporation Analyst Day September 14, 2012 Fire & Emergency Operating Income Margin Outlook
10.0%
8.0%
~6.0% 6.0%
4.0% 2.0% - 2.5% 2.0%
0.0% (Operating Income Margin %) Income (Operating (0.4%) (0.8%) (1) -2.0% FY11 FY12E (2) FY13E FY15E
• Exit of under performing businesses lifts margins ~2% in FY13; when exit complete, Company will seek to accelerate margin improvement • Operating income margin expected to recover to mid-single digits in FY14
(1) Excludes impact of non-cash impairment charges (2) Excludes costs to exit ambulance and European mobile medical businesses
90 2012 Oshkosh Corporation Analyst Day September 14, 2012 Fire & Emergency Operating Income Margin Drivers
10.0% 9.3%
8.0%
~6.0% 6.0%
4.0%
2.0% (0.8%) 0.0%
(Operating Income Margin %) (Operating Income Margin Prior Peak FY12E(1) "M" "O" "V" "E" FY15E (FY08) Initiatives Initiatives Initiatives Initiatives -2.0%
• Margins impacted by emerging market investments
• Over time, Company will seek to accelerate margin recovery targets despite soft domestic markets
(1) Excludes costs to exit ambulance and European mobile medical businesses
91 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Corporation Analyst Day
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2012 Oshkosh Corporation Analyst Day September 14, 2012 Todd Fierro Commercial
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2012 Oshkosh Corporation Analyst Day September 14, 2012 The Commercial Advantage
2012 Oshkosh Corporation Analyst Day September 14, 2012 The Commercial Advantage: Street Smart, Street Tough
Best in class Aftermarket Broadest Service and Product Line Support Refuse collection vehicle product line
Direct Innovation and Distribution, New Product Customer Development Intimacy
Integrated factory
Access to Scalable, Technology, Flexible Alternative Manufacturing Fuels & Operations Leadership
Alternative fuel technology
95 2012 Oshkosh Corporation Analyst Day September 14, 2012 Broadest Product Line
Standard Bridgemaster Front Discharge
Concrete Mixers
Front Loader Rear Loader Side Loader
Refuse Collection Vehicles
DominatorArticulating Cranes Batch Plants
Service Bodies, Cranes, Plants
96 2012 Oshkosh Corporation Analyst Day September 14, 2012 Distribution and Operations Advantages
• Distribution Advantages • Operations Advantages – 23 factory owned – Scalable and flexible capacity branch locations – Lean manufacturing initiatives – Customer intimacy via direct sales force – Parts distribution managed close to customers
97 2012 Oshkosh Corporation Analyst Day September 14, 2012 Supporting the Outlook
2012 Oshkosh Corporation Analyst Day September 14, 2012 Construction: Tremendous Opportunity with Modest Recovery
Housing Starts and Housing Starts and Mixer Mixer Shipments (1959-2011) Shipments (1959-2011)
2,500 12,000 12,000
10,000 2,000 10,000
8,000
Mixer Units Shipped Shipped Mixer Units 8,000 1,500
6,000 6,000
1,000
Housing Starts (000s) Housing Starts 4,000 4,000
500 Mixer Units Shipped 2,000 2,000
0 0 0 500 1,000 1,500 2,000 2,500
Housing Starts Mixer Units Shipped Housing Starts (in '000's)
Mixer Units Shipped Linear (Mixer Units Shipped)
Sources: Unit data - Truck Mixer Manufacturing Board; Housing Starts – U.S. Census Bureau
99 2012 Oshkosh Corporation Analyst Day September 14, 2012 U.S. Mixer Market Unit Growth Analysis
Housing Starts Forecast FY12 - FY15 CAGR 46% 2.0 12,000 1.8 Assumed one 1.6 10,000 year delay in 1.4 mixer demand vs. 1.2 8,000 starts correlation! < 50% of 1.0 6,000 FY06 0.8 Volume
0.6 (Units) Market Size 4,000
Housing Starts In Millions 0.4 0.2 2,000 0.0 2011 2012E 2013E 2014E 2015E 0
Moodys Portland Cement Association Global Insight Average Analyst Estimate • Housing starts assumptions: 0.8 million in FY13; 1.2 million in FY14; and 1.4 million in FY15 • Concrete mixer parts demand is up 25% YTD June FY12 and up >100% from the recessionary low • Wallboard loader demand recovery recently started
100 2012 Oshkosh Corporation Analyst Day September 14, 2012 Significant Opportunity with Modest RCV Recovery
• RCV market expected to be driven by: – Population growth – CAGR 1% Realistic – Market recovery / fleet age – CAGR 1% projections based on – Construction and demolition –CAGR 1% historical data
10,000
9,000
8,000
7,000
6,000
5,000
4,000
Market Size (units) Market Size 3,000
2,000
1,000
0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15E
101 2012 Oshkosh Corporation Analyst Day September 14, 2012 Financial Outlook
2012 Oshkosh Corporation Analyst Day September 14, 2012 Commercial Sales Outlook
$1,400 ~$1,250 $1,200
$1,000
$725 – $750 $800 ~$680 $565 $600 (Sales in Millions) (Sales in $400
$200
$0 FY11E FY12E FY13E FY15E
Mixer and Other Refuse
• Housing recovery expected to drive strong concrete mixer demand by FY15 – > 40% concrete mixer FY12E - FY15E sales CAGR • Modest refuse collection vehicle growth outlook
103 2012 Oshkosh Corporation Analyst Day September 14, 2012 Commercial Operating Income Margin Outlook
12.0%
>10.0% 10.0%
8.0%
6.0% 4.5% - 5.0% ~4.0% 4.0% (Operating Income Margin %) Income (Operating 2.0% 0.7%
0.0% FY11 FY12E FY13E FY15E • Margin improvement expected to accelerate in FY14 and FY15 as concrete mixer volumes recover
104 2012 Oshkosh Corporation Analyst Day September 14, 2012 Commercial Operating Income Margin Drivers
12.0% >10.0% 10.0% 8.2% 8.0%
6.0% ~4.0% 4.0%
2.0% (Operating Income Margin %) Income (Operating
0.0% Prior Peak FY12E "M" "O" "V" "E" FY15E (FY00) Initiatives Initiatives Initiatives Initiatives
• Reasonable market recovery assumptions drive significant fixed cost absorption benefits • Growth in Americas outside U.S. is included in “M” initiatives driver • Segment continues to study emerging market initiatives outside of the Americas
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108 2012 Oshkosh Corporation Analyst Day September 14, 2012 Colleen Moynihan Quality & Continuous Improvement Oshkosh Corporation Analyst Day
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2012 Oshkosh Corporation Analyst Day September 14, 2012 Q&CI Priorities Support MOVE
Provide Coaching and Training Customer First
Deploy Systems And Standards Customer Supporting Systems
Measure Results And Delight Customer Satisfaction
110 2012 Oshkosh Corporation Analyst Day September 14, 2012 The Oshkosh Operating System and Our Deployment Journey
2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System
112 2012 Oshkosh Corporation Analyst Day September 14, 2012 One System Customer First Guiding Principles
• Develop deep understanding of our customers • Provide superior performance and quality • Promote a “Customer First” culture
113 2012 Oshkosh Corporation Analyst Day September 14, 2012 One Team Customer Supporting Systems
• Align our objectives and establish plans to deliver improvement • Create processes that provide value to our customers • Use lean tools to continually improve costs, performance and delight our customers
114 2012 Oshkosh Corporation Analyst Day September 14, 2012 One Oshkosh Customer Satisfaction
• Verify customer satisfaction and reinforce partnership • Develop customer- supplier relationships, internally and externally • Utilize measurement systems to drive improvement
115 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System Accelerates MOVE
• Create common way of thinking and operating • Establish standard set of practices that will improve our business • Engage all of our employees in delighting our customers
116 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System Deployment
The OOS Journey
Phase Two: Phase Three: Phase Four: Phase Zero: Phase One: Expanding Integration and Building the Exploration Building the reinforcement momentum foundation with tools and deeper thinking
From Jamie Flinchbaugh and Andy Carlino, Hitchhiker’s Guide to Lean
117 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System Deployment Expanding with Tools and Deeper Thinking
Communication Deploy a top down communication strategy Implement an education program for Education OOS principles, systems and tools (Oshkosh University) Define, develop and deploy the OOS tools, Tools and Methods methods, and measurement systems Execute OOS projects to meet business Application performance targets Implement organizational structure to deploy and Infrastructure sustain OOS across the enterprise Strengthen leadership behaviors to Leadership Engagement reinforce OOS
118 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System Deployment Launch Oshkosh University
119 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System Standardize Tools and Methods
We’ve Got It… We’ve Found It…
Business Oshkosh Unit Quality Procedures Management System
External We’re Developing It… Best Practices
Customer Acceptance Validation
Customer Six Quality Experience Pilot Projects
120 2012 Oshkosh Corporation Analyst Day September 14, 2012 The Oshkosh Operating System and Execution of our MOVE Strategy
2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System Results Increasing Manufacturing Efficiency
JLG - Boom Fab Cell Flow Improvement OOS Project Results: • Reduced Work In Process by 50% - raw and finished booms • Reduced floor space usage through consolidation of 800 boom upper fly and carrier tube build cells • Reduced wait time… New layout enabled use of 5th Before: Excessive WIP, After: Reduced WIP, improved inefficient cell layout, wait time labor utilization overhead crane which reduced wait time Pierce Appleton – Cab Paint Improvement OOS Project Results: • Reduced indirect supplies through changes in material selection • Reduced direct labor involved in taping and unmasking
Before: Masking tape and paper After: New primer surface eliminated applied to all openings. need for taping and unmasking Defense – Line Balance Improvement OOS Project Results: • Redeployed assemblers to new business needs • Reduced overtime • Reduced floor space usage by 20,000 sq. ft.
Before: Operator utilization at After: Operator utilization at 73% of takt time 92% of takt time
122 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System Results Optimizing Material Flow
JLG - Boom Fab Cell Material Improvement OOS Project Results: • Improved inventory control by receiving parts in sets • Reduced material handling • Improved safety through ergonomic improvements
Before: Parts received in After: Parts paired and received separate wire baskets in returnable container McNeilus – Material Flow Improvement OOS Project Results: • Reduced inventory significantly • Reclaimed valuable production floor space • Improved production efficiency in part delivery by shortening chain from supermarket to production line
Before: Racking congested plant After: Additional 5,000 sq. ft. for floor space production Defense – Material Presentation OOS Project Results: • Reduced inventory and parts shortages • Reduced non-value added walk time and wait time • Improved safety through ergonomic improvements
Before: Excessive inventory, no After: Reduced inventory, visual control improved labor utilization
123 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System Results Improving Product Quality
FMTV Pre-Delivery Inspection Results
50% Reduction
FY11 Baseline FY12 Q3 Actual
FMTV Internal Customer Inspection Results Contract Goal 74% Reduction
FY11 Baseline FY12 Q3 Actual Defects per Unit
FMTV External Customer Inspection Results
81% Reduction
FY11 Baseline FY12 Q3 Actual
124 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System Results Expanding Lean to Business Processes
Visual Management Standard Work to Align and in Corporate Finance Execute our Objectives Through Strategy Value Stream Mapping Deployment the Product Development Process
125 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Operating System How We Will Succeed
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128 2012 Oshkosh Corporation Analyst Day September 14, 2012 Greg Fredericksen GPSC
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2012 Oshkosh Corporation Analyst Day September 14, 2012 GPSC Four Priorities
Delivery / Supply Chain
Quality / Launch
NPD - Program Management
Competitiveness
Suppliers Must Perform To All Four Priorities
130 2012 Oshkosh Corporation Analyst Day September 14, 2012 Building a World Class Procurement Organization
• Talent and expertise upgraded • Active participation in design process to drive cost & quality • Cost management leveraging size & scale across the segments • Forensic cost tool box to address all cost drivers
131 2012 Oshkosh Corporation Analyst Day September 14, 2012 High Impact Successes
• M-ATV supplier management
• Access Equipment Tianjin plant start up
• Access Equipment global capacity management
•FMTV
132 2012 Oshkosh Corporation Analyst Day September 14, 2012 Cross Segment Synergies
• Fabrications/commodities – weldments, steel, etc. • Powertrain – engines, transmissions and component “dress” items • Driveline – axles, drive components and suspension systems • Hydraulics – cylinders, valves, hoses and fittings • Chassis – configurations across multiple manufacturers • Wheels and tires – including components and the assembly process to provide our plants a single subassembly to install
133 2012 Oshkosh Corporation Analyst Day September 14, 2012 MOVE is Deployed
• Optimize cost • Value innovation – Past four years we have – Supplier technology to OSK first minimized material cost impacts – NPD supplier management to our products – SCRIPs – Supplier development improvements – Forensic cost driver analysis
134 2012 Oshkosh Corporation Analyst Day September 14, 2012 Future Focus
• Operational excellence: ‒ Cost driver analytics tied to our NPD process ‒ Continued development of Supplier Cost Reduction & Improvement Process (SCRIPs) • Lean supply chain: increase inventory turns / reduce lead times • Advance supplier metrics • Evolution of GPSC academy to suppliers
135 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Corporation Analyst Day
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2012 Oshkosh Corporation Analyst Day September 14, 2012 Gary Schmiedel Technology
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2012 Oshkosh Corporation Analyst Day September 14, 2012 OSK Engineering Priorities
Innovation Leadership
NPD Program Management
Competitiveness Cost & Weight
Quality & Launch
138 2012 Oshkosh Corporation Analyst Day September 14, 2012 NPD Program Management
“Effectively Deliver What Customers Competitiveness Want” Cost & Weight Innovation Leadership “Provide Best Value for our Customers” “Improve our Customers’ Work”
Quality & Launch
“Flawlessly Launch to Customers”
139 2012 Oshkosh Corporation Analyst Day September 14, 2012 Cross Segment Collaboration
• Engineering Summit • Core Competency Teams Annual • Project Reviews Quarterly Access Commercial Equipment Engineering Engineering
Corporate Engineering
Fire & Defense Emergency Engineering • Best Practices Sharing Engineering • Engineering Leadership Ongoing Discussions • Project Team Meetings Weekly
• Competitive Events 140 2012 Oshkosh Corporation Analyst Day September 14, 2012 Innovation Leadership
2012 Oshkosh Corporation Analyst Day September 14, 2012 Vehicle Mobility
Oshkosh continues as the gold standard for off road mobility
142 2012 Oshkosh Corporation Analyst Day September 14, 2012 Safety Systems
Cab Crush Resistance Frontal Impact Protection
SkyGuard™ Control Panel Unsurpassed Visibility and Cab Roominess Protection
143 2012 Oshkosh Corporation Analyst Day September 14, 2012 Safety Systems
Electronic stability control
144 2012 Oshkosh Corporation Analyst Day September 14, 2012 Autonomy • Cargo Unmanned Ground Vehicle (Cargo-UGV) – Customer evaluation completed August 2012 – System suitable for a wide range of host vehicles – Vehicle remains human driveable – Full autonomy – Shadow mode – Remote control
Autonomous vehicles operating in dusty conditions
Handheld tele-operation controller
145 2012 Oshkosh Corporation Analyst Day September 14, 2012 New Product Introductions
2012 Oshkosh Corporation Analyst Day September 14, 2012 New Products – Access Equipment
• Telehandlers – Emissions updates: EU machines to Stage IIIB, NA machines to Tier 4i – Improved visibility • 1500SJ New North American and European Telehandler Configurations – 150 foot working height – Transportable without oversize height or width permits • RS Scissors – Manufactured in Tianjin, China – 6m and 10m configurations • 340AJ – Named “Best Product of the Year” by Hire and Rental Industry Association – 34 foot lift, 17 foot up and over capability – Dual fuel (propane/gasoline) or diesel 1500SJ engines available RS Scissors 340AJ
147 2012 Oshkosh Corporation Analyst Day September 14, 2012 New Products – Defense
• Joint Light Tactical Vehicle (JLTV)
• HMMWV upgrades and replacements Joint Light Tactical Vehicle • Ground Mobility Vehicle (GMV) (JLTV) • Multi Mission Recovery System (MMRS)
HMMWV Suspension Upgrade
Ground Mobility Vehicle (GMV)
Multi-Mission Recovery System (MMRS)
148 2012 Oshkosh Corporation Analyst Day September 14, 2012 New Products – Fire & Emergency
Dash Cab Forward aerial H-Series with Oshkosh broom subsystem
3000 gallon capacity Global Striker Pierce Industrial Pumper – Chongqing, China
149 2012 Oshkosh Corporation Analyst Day September 14, 2012 New Products – Commercial
• Compressed natural gas continues to grow as an alternative fuel – CNG variants available in all primary product configurations • Main stream products refined for cost and weight improvements • Niche products address specific markets
Split rear loader, 60/40 Contender front loader CNG Powered front and rear loaders
Extended reach Zero Radius Organics front Ready mix market embracing CNG as a fuel side loader loader
150 2012 Oshkosh Corporation Analyst Day September 14, 2012
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2012 Oshkosh Corporation Analyst Day September 14, 2012 Dave Sagehorn CFO
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2012 Oshkosh Corporation Analyst Day September 14, 2012 Consolidated Sales Bridge
$10.0
~$8.1 $8.0 $6.5-$6.9
$6.0
$4.0 (Sales in Billions)
$2.0
$0.0 FY12E Defense "M" "V" "E" FY15E Decline(1) Initiatives Initiatives Initiatives • Defense sales upside exists from baseline levels • Expect MOVE to significantly offset Defense segment sales decline • Assumes no acquisitions
(1) Sales decline to baseline level, assuming no new sales capture beyond current Oshkosh programs
154 2012 Oshkosh Corporation Analyst Day September 14, 2012 Consolidated Operating Income Margin Bridge
10.0% 9.2%-9.8%
8.0%
6.0% 4.3%-4.4%
4.0%
2.0% (Operating Income Margin %) (Operating Income Margin
0.0% FY12E(1) Defense "M" "O" "V " "E" FY15E Decline Initiatives Initiatives Initiatives Initiatives • Expect MOVE to more than offset impact of lower Defense sales on operating income margins • Potential for Defense operating income upside from sales above baseline level
(1) Excludes costs to exit ambulance and European mobile medical businesses
155 2012 Oshkosh Corporation Analyst Day September 14, 2012 Doubling EPS by FY15 Oshkosh Corporation
EPS Opportunity $4.00 to $4.50
$2.05 to $2.15 23%-30% CAGR
FY12E(1) FY15E • Other FY15 Assumptions – Interest expense and other ~$55 million – Tax rate ~34% – Share count ~ 90.5 million
(1) Excludes costs to exit ambulance and European mobile medical businesses 156 2012 Oshkosh Corporation Analyst Day September 14, 2012 Consolidated Free Cash Flow (FCF) (1) Summary
$350 $300-$350
$300
$250 $175-$200 $200
$150
$100 (Dollars in Millions) $50
$0 FY12E FY15E
• FY12E FCF higher than previous expectations due to timing of Defense customer payments • FY13E FCF expected to be lower than FY12 due to shift in sales to more working capital intensive segments and continued “performance-based payment” drawdown in Defense segment • Expect all FY13E – FY14E FCF to be attributable to Access Equipment segment • FY15E reflects higher earnings and stabilization of working capital requirements
(1) Defined as cash flow from operations less net capital expenditures
157 2012 Oshkosh Corporation Analyst Day September 14, 2012 FY13 Early View Estimates
Full Year Low High
Sales (billions) $7.5 $7.8
Operating Income (millions) $380 $420
Diluted EPS $2.35 $2.60
• Comments on First Quarter – Seasonally lowest sales and EPS quarter – International M-ATV sales begin in Q2 – Potential customer pause pending outcome of November elections
158 2012 Oshkosh Corporation Analyst Day September 14, 2012 FY13 Early View Estimates (Continued)
Segment expectations Access Fire & Measure Defense Commercial Equipment Emergency Sales $2.8-$3.0 $3.3-$3.4 $0.72-$0.75 $0.72-$0.75 (billions) Operating 9.5%-10.0% 5.0%-5.5% 2.0%-2.5% 4.5%-5.0% Income Margin
• Corporate expenses up ~10% (higher IT investment) • Tax rate of ~33% • CapEx of ~$70 million • Free cash flow $75 - $100 million • Share count of ~91.5 million
159 2012 Oshkosh Corporation Analyst Day September 14, 2012 Capital Allocation Strategy
2012 Oshkosh Corporation Analyst Day September 14, 2012 Disciplined Capital Allocation Framework
Long-term targeted capital structure
Re-invest in core business
Invest in external Return capital to growth shareholders opportunities
Reduce debt
• Continually review capital structure Hold cash • Apply free cash flow to uses that we believe provide highest returns • Expect to opportunistically use capital for share repurchases or acquisitions
161 2012 Oshkosh Corporation Analyst Day September 14, 2012 Solid Debt Metrics
Debt Maturity Schedule Leverage
TLA TLA Amort Senior Notes Leverage Covenant Optimal Target Range
$400 8 $350 7 $300 6 $250 5 $200 4
$150 Leverage 3 $100 2 Debt Level Debt Level ($ millions) $50 1 $0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY08 FY09 FY10 FY11 FY12
Fixed / Floating Debt Ratio
Fixed / Floating Debt Ratio Optimal Target Range
100% 90% 80% • Manageable debt maturities 70% 60% • Appropriate fixed / floating mix 50% 40% 30% • Responsible leverage profile 20% 10%
Fixed Rate Debt Percentage 0% Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12
162 2012 Oshkosh Corporation Analyst Day September 14, 2012 Returning Capital to Shareholders
Enhancing long-term shareholder value • Driving share price over the long-term • Share Repurchase Program – Invest in attractive internal rate of return opportunities – Established 10b5-1 share repurchase program • While maintaining a solid balance sheet
(1) Shares repurchased since July 31 ~547,000
Average price per share $24.40
(1) As of September 7, 2012
163 2012 Oshkosh Corporation Analyst Day September 14, 2012 External Growth Opportunities
• Opportunistic acquirer mindset – Right target – Right time – Right price ….No compelling need to make an acquisition at this time • Potential deal characteristics – Target similar to existing products, but different end markets – Market leader – Large enough to make a difference, but not too big – Domestic or internationally located • Focused on improving OSK valuation
164 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Corporation Analyst Day
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168 2012 Oshkosh Corporation Analyst Day September 14, 2012 The Road to Doubling to a Global Industrial
September 14, 2012
2012 Oshkosh Corporation Analyst Day September 14, 2012 Doubling EPS by FY15
• MOVE strategy expected to Oshkosh Corporation deliver higher margins EPS Opportunity throughout the cycle $4.00 to $4.50 • The recovery from a deep cycle has commenced and is expected to overcome defense downturn $2.05 to $2.15 • Oshkosh has the processes 23%-30% and team to deliver MOVE CAGR
FY12E(1) FY15E
(1) Excludes costs to exit ambulance and European mobile medical businesses
170 2012 Oshkosh Corporation Analyst Day September 14, 2012 Appendix
2012 Oshkosh Corporation Analyst Day September 14, 2012 Non-GAAP Reconciliations The table below presents a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures ($ in millions, except per share amounts)
Fire & Emergency Fiscal 2012 Estimates Segment Consolidated Operating income (loss): Low High Low High As presented $ (6.6) $ (6.6) $ 345.0 $ 355.0 Costs to exit ambulance and European mobile medical businesses (18.0) (14.0) (18.0) (14.0) GAAP $ (24.6) $ (20.6) $ 327.0 $ 341.0 Operating income (loss) margin: As presented (0.8)% (0.8)% 4.3% 4.4% Impact of costs to exit ambulance and European mobile medical businesses (2.2)% (1.7)% (0.2)% (0.2)% GAAP (3.0)% (2.5)% 4.1% 4.2% EPS: As presented $ 2.05 $ 2.15 Impact of costs to exit ambulance and European mobile medical businesses, net of tax (0.15) (0.12) GAAP $ 1.90 $ 2.03 Fiscal 2012E to 2015E EPS CAGR (1) As presented 23% 30% Based on GAAP EPS 25% 33%
(1) CAGR – compound annual growth rate
172 2012 Oshkosh Corporation Analyst Day September 14, 2012 Non-GAAP Reconciliations (continued) The table below presents a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures ($ in millions)
Fiscal 2011 Operating Income (Loss) (1) Revenue $ % of Revenue Non-Defense As reported: Consolidated $ 7,584.7 $ 500.9 6.6% Less Defense segment (4,359.9) (543.0) Plus Corporate expense - 107.1 Non-Defense segments $ 3,224.8 $ 65.0 2.0% Plus goodwill and long-lived asset impairment charges - 4.8 Non-GAAP – non-Defense segments as presented $ 3,224.8 $ 69.8 2.2%
Fire & Emergency As reported $ 782.3 $ (8.2) (1.0)% Plus goodwill and long-lived asset impairment charges - 4.8 Non-GAAP Fire & Emergency as presented $ 782.3 $ (3.4) (0.4)%
(1) To external customers
173 2012 Oshkosh Corporation Analyst Day September 14, 2012 Non-GAAP Reconciliations (continued)
The table below presents a reconciliation of the Company’s presented non-GAAP free cash flow measures to the most directly comparable GAAP measures ($ in millions)
Fiscal 2012E Fiscal 2013E Fiscal 2015E Low High Low High Low High
GAAP -- Net cash provided by operating activities$ 224.0 $ 249.0 $ 149.0 $ 174.0 $ 385.0 $ 435.0 Additions to: Property, plant & equipment (54.0) (54.0) (70.0) (70.0) (80.0) (80.0) Equipment held for rental (6.0) (6.0) (12.0) (12.0) (10.0) (10.0) Proceeds from sale of: Property, plant & equipment 8.0 8.0 - - - - Equipment held for rental 3.0 3.0 8.0 8.0 5.0 5.0
Non-GAAP -- free cash flow as presented$ 175.0 $ 200.0 $ 75.0 $ 100.0 $ 300.0 $ 350.0
174 2012 Oshkosh Corporation Analyst Day September 14, 2012 Oshkosh Corporation Analyst Day
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2012 Oshkosh Corporation Analyst Day September 14, 2012 Slide intentionally left blank
176 2012 Oshkosh Corporation Analyst Day September 14, 2012 Executive Biographies
• Charles L. Szews • Charles L. Szews is Oshkosh Corporation Chief Executive Officer (CEO). Most recently, Szews served as President and CEO, a position he was appointed to in January 2011. Szews joined the company in 1996 as Vice President and Chief Financial Officer (CFO), was appointed Executive Vice President in October 1997, and appointed President and Chief Operating Officer (COO) in October 2007. Szews was elected to the Oshkosh Board of Directors in 2007, a position he holds in addition to his other responsibilities. • Prior to joining Oshkosh, Szews spent eight years with Fort Howard Corporation, holding a series of positions with increasing responsibility, most recently as vice president and controller. • Szews holds a bachelor's degree summa cum laude in business administration from the University of Wisconsin - Eau Claire. He received his certified public accountant certification in 1980 and has 10 years of independent auditing experience with Ernst & Young. • Szews currently also serves on the board of directors of Gardner Denver, Inc., a recognized leader in compressed air and gas, vacuum and fluid transfer technologies to industries throughout the world.
177 Analyst Day Executive Biographies September 2012 Executive Biographies
• Wilson R. Jones • Wilson R. Jones is Oshkosh Corporation President and Chief Operating Officer (COO), a position he was appointed to in August 2012. Most recently, Jones served as Executive Vice President and President, Access Equipment where he drove domestic and international growth, customer experiences with access products and strategically developed the segment’s global position. • Prior to joining the Access Equipment segment, Jones was Executive Vice President and President, Fire & Emergency, a position which he was promoted to in September 2008. Jones was also the President of Pierce Manufacturing Inc.; he was appointed to this position in July 2007. • In addition, Jones has served as Vice President of Sales and Marketing for the Fire & Emergency segment. Jones joined Oshkosh Corporation in 2005 as the Vice President and General Manager of the Airport Products Business Unit, where he led a strategic international initiative for the company. • Jones has been in specialty vehicle manufacturing for more than 20 years. Jones has served on the Board of Directors for the Fire Apparatus Manufacturers’ Association and the American Ambulance Association. Jones holds a bachelor’s of business administration degree from the University of North Texas.
178 Analyst Day Executive Biographies September 2012 Executive Biographies
• Frank R. Nerenhausen • Frank R. Nerenhausen is Oshkosh Corporation Executive Vice President and President, Access Equipment, a position he was appointed to in August 2012. Nerenhausen oversees all aspects of the company’s Access Equipment segment, which includes JLG Industries, Inc. and Jerr-Dan Corporation. • Most recently, Nerenhausen served as Oshkosh Corporation’s Executive Vice President and President, Commercial, where he was responsible for all companies within the Commercial business segment including McNeilus, CON-E-CO, London Machinery and IMT. • Nerenhausen has had positions of increasing responsibility in various functional areas since joining Oshkosh Corporation in 1986. Nerenhausen has a bachelor’s of Business Administration degree in Finance and Management Information Systems and an MBA with a marketing emphasis from the University of Wisconsin-Oshkosh.
179 Analyst Day Executive Biographies September 2012 Executive Biographies
• John M. Urias • John M. Urias is Oshkosh Corporation Executive Vice President and President, Defense. He was appointed to this position in October 2011. Urias is responsible for leading all aspects of the company’s global defense business, including vehicle programs, new product development, life-cycle sustainment and aftermarket services. • Urias is a former Army major general with 31 years of distinguished service. Before retiring from the Army, he served as commanding general of the Joint Contracting Command – Iran/Afghanistan in support of Operation Iraqi Freedom and Operation Enduring Freedom. His additional Army experience includes serving as the program executive officer of Air, Space & Missile Defense and deputy for systems acquisition at the Tank-Automotive and Armaments Command (TACOM). • Prior to joining Oshkosh, Urias worked for Raytheon Company, where he most recently served as vice president of programs for Raytheon Integrated Defense Systems. In this role, he served as an advisor with senior international and domestic government officials. He also identified and developed new business opportunities, supported international business efforts, and was a key participant in national theater and security programs. • Urias holds a master’s degree in national security and strategic studies from the Naval War College, a master’s degree in electrical engineering from the Naval Postgraduate School, and a bachelor’s degree in biological sciences from the University of California, Davis.
180 Analyst Day Executive Biographies September 2012 Executive Biographies
• James W. Johnson • James W. Johnson is Executive Vice President and President, Fire & Emergency. He is responsible for the overall operations of the entire Fire & Emergency Segment, consisting of the Pierce®, Oshkosh® Airport Products, Oshkosh Specialty Vehicles and Frontline™ brands. • Prior to his current role, Johnson was the Sr. Vice President of Sales and Marketing for Pierce Manufacturing. He first joined Oshkosh Corporation in 2007, as the Director of Dealer Development for Pierce. Johnson has been in specialty vehicle manufacturing for 10 years, holding positions of increasing responsibility in sales and marketing in the recreational vehicle industry with Coachmen Industries and Forest River, Inc. He is also an attorney who spent several years practicing law in Indianapolis, Indiana focusing on commercial litigation. • Johnson holds a Bachelor of Science degree in Business from Indiana University, Bloomington and a Juris Doctorate degree from Indiana University, Indianapolis.
181 Analyst Day Executive Biographies September 2012 Executive Biographies
• Todd Fierro • Todd Fierro is Senior Vice President and President, Commercial. Fierro oversees all aspects of the company’s Commercial segment, which includes McNeilus, CON-E-CO, London Machinery and IMT. • Fierro joined Oshkosh in April 2011 as Vice President of Operations for the Commercial segment. He was instrumental in driving improved operational efficiencies and quality, while launching the principles and tools of the Oshkosh Operating System throughout the Commercial operations. • Fierro has nearly 18 years of experience with Ford Motor Company, where he held a number of operations and engineering leadership positions. Prior to coming to Oshkosh, he managed start-up operations for Bloom Energy and Eclipse Aviation. Fierro has a bachelor’s degree in Manufacturing Engineering from Wayne State University.
182 Analyst Day Executive Biographies September 2012 Executive Biographies • Colleen Moynihan • Colleen Moynihan is Oshkosh Corporation Senior Vice President, Quality & Continuous Improvement, joining the company in July 2011. Moynihan is responsible for leading the deployment of the Oshkosh Operating System and implementing a Global Quality Management System. • Moynihan brings 26 years of quality, manufacturing operations, and engineering experience to Oshkosh Corporation. She came to Oshkosh from Caterpillar Incorporated, one of the world’s largest manufacturers of construction and mining equipment. As Director of Global Quality & Manufacturing Engineering at Caterpillar, Moynihan unified all business divisions under one Quality Management System and led Manufacturing Engineering implementation of the Caterpillar Production System. • Prior to Caterpillar, Moynihan progressed through multiple transformational leadership positions at Ford Motor Company, and was one of the pioneers in the evolution of the Ford Production System. During her last four years, as Global Quality Director of Ford Powertrain, her expertise contributed to Ford’s industry-leading quality reputation. • Moynihan is certified as a Six Sigma Black Belt. She holds a master’s degree in Mechanical Engineering from the University of Michigan, Ann Arbor, and a bachelor’s degree in Mechanical Engineering from the State University of New York at Stony Brook. 183 Analyst Day Executive Biographies September 2012 Executive Biographies • Gregory L. Fredericksen • Gregory (Greg) L. Fredericksen is Oshkosh Corporation Executive Vice President, Chief Procurement Officer, a position he was appointed in May 2010. Prior to this, Greg served as Senior Vice President, Chief Procurement Officer which he was appointed to in February 2008 when joining Oshkosh. • Greg is responsible for procurement of all materials and capital equipment throughout the company, acquisition of all logistics services, supplier development and supplier quality programs, and procurement support for new product development and acquisitions. • Greg brings 23 years of purchasing and supplier quality experience from General Motors, where he began his career in 1986 with Saturn Corporation. He held various executive positions at GM in Corporate Advance Purchasing, GM Truck Group and GM Supplier Quality through 2001. At that time he was appointed to an executive position in Worldwide Purchasing for the GM-FIAT Joint Venture Group in Europe from 2001 through 2004. Prior to coming to Oshkosh he was Executive Director, Global Purchasing for global steel and structures system requirements at GM. • Greg received a bachelor’s degree in business administration from Central Michigan University in 1983 and participated in a GM-Harvard Business School senior management program in 2001.
184 Analyst Day Executive Biographies September 2012 Executive Biographies
• Gary W. Schmiedel • Gary W. Schmiedel is Oshkosh Corporation Executive Vice President, Technology, a position he was appointed to in February 2011. Schmiedel oversees all aspects of the company’s technology development efforts supporting all four business segments. • Most recently, Schmiedel served as Senior Vice President, Defense Engineering and Technology where he oversaw engineering efforts in product training, Integrated Logistics Support, vehicle design, research and development, systems engineering and new product development. He has been a leader in advanced products and corporate electronics, supporting all business units within the company. • Schmiedel has had various engineering-focused positions of increasing responsibility since his start with the company in 1983 as a liaison at the Aberdeen Test Center. After Oshkosh’s acquisition of JLG Industries, Inc., Schmiedel led integration efforts of engineering teams and has been a leader in the MRAP All-Terrain Vehicle (M-ATV) production and variant development. He oversaw the development of Oshkosh’s TerraMax™ unmanned ground vehicle efforts and also led the implementation of the TAK-4™ independent suspension system into numerous vehicles. • Schmiedel holds a bachelor’s degree in mechanical engineering from Michigan Technological University and is also a licensed professional engineer.
185 Analyst Day Executive Biographies September 2012 Executive Biographies
• David M. Sagehorn • David M. Sagehorn is Oshkosh Corporation Executive Vice President, Chief Financial Officer responsible for directing the company’s overall financial policies, as well as managing all financial functions including accounting, investor relations, credit, information technology and insurance. • Sagehorn joined Oshkosh in March 2000 in the role of senior manager, mergers and acquisitions, and subsequently assumed roles of increasing responsibility, including director and vice president of business development; vice president, finance for Oshkosh’s defense group; and vice president and treasurer for the corporation before being promoted to his current position. He was also responsible for mergers & acquisitions (M&A) and strategic planning for the corporation, supporting the company’s growth and diversification strategies. • Prior to joining Oshkosh, Sagehorn worked in corporate finance at CNH Global (formerly Case Corporation). He began his career at a public accounting firm in Madison, Wis., achieving the position of audit manager. • Sagehorn holds a bachelor's degree in accounting from the University of Wisconsin – Platteville and an MBA from Marquette University. He is a certified public accountant.
186 Analyst Day Executive Biographies September 2012 Executive Biographies
• Patrick N. Davidson • Patrick Davidson has been with Oshkosh Corporation since 2006 as the vice president of investor relations. He is responsible for communications with analysts, investors and financial media. He works cross-functionally with strong support throughout Oshkosh to educate and inform stakeholders regarding the company and its strategies so that Oshkosh is appropriately and accurately valued by the investing community. • Prior to his work at Oshkosh, Davidson spent 14 years at Harley-Davidson, Inc. in a variety of positions including factory supervisor, Asia-Pacific marketing, corporate purchasing and director of investor relations. He began his career at Motorola as a product engineer in the semiconductor products sector in Austin, Texas and spent time at S.C. Johnson Wax in Racine, Wisconsin. • Davidson holds a bachelor of science degree in Chemical Engineering from the University of Wisconsin-Madison, and a master’s degree in business administration from Northwestern University’s Kellogg School of Management.
187 Analyst Day Executive Biographies September 2012 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
EAME Europe, Africa & Middle East NPD New Product Development
EMD Engineering & Manufacturing Development OI Operating Income
FHTV Family of Heavy Tactical Vehicles PLS Palletized Load System
FMS Foreign Military Sales PUC Pierce Ultimate Configuration
FMTV Family of Medium Tactical Vehicles RCV Refuse Collection Vehicle
HEMTT Heavy Expanded Mobility Tactical Truck RFP Request for Proposal
HET Heavy Equipment Transporter ROW Rest of World
HEWATT HEMTT-Based Water Tender SMP Standard Military Pattern (Canadian MSVS)
HMMWV High Mobility Multi-Purpose Wheeled Vehicle TACOM Tank-automotive and Armaments Command
JLTV Joint Light Tactical Vehicle TDP Technical Data Package
JPO Joint Program Office TFFT Tactical Fire Fighting Truck
JROC Joint Requirements Oversight Council TPV Tactical Protector Vehicle
JUONS Joint Urgent Operational Needs Statement TWV Tactical Wheeled Vehicle
L-ATV Light Combat Tactical All-Terrain Vehicle UCA Undefinitized Contract Action
LVSR Logistic Vehicle System Replacement UIK Underbody Improvement Kit (for M-ATV)
M-ATV MRAP All-Terrain Vehicle
188 Oshkosh Corporation Analyst Day
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2012 Oshkosh Corporation Analyst Day September 14, 2012