Oshkosh Corporation
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AT-A-GLANCE Oshkosh Corporation is a leading designer, The top priorities of our 13,800 team members manufacturer and marketer of a broad range are to serve and delight our customers as well of access equipment, specialty military, fire & as drive superior operating performance to emergency and commercial vehicles and vehicle benefit our shareholders. We do this through bodies. Our products are valued worldwide by rental execution of our MOVE strategy and by leveraging companies, defense forces, concrete placement our strengths and resources in engineering, and refuse businesses, fire & emergency departments manufacturing, purchasing and distribution and municipal and airport services, where high across our four business segments. quality, superior performance, rugged reliability and long-term value are paramount. Approximately 24% of our revenues came from outside the United States in fiscal 2016 and we We partner with our customers to deliver superior have manufacturing operations in eight U.S. states solutions that safely and efficiently move people and in Australia, Belgium, Canada, China, France, and materials at work, around the globe and around Mexico, Romania and the United Kingdom as well the clock. as operations to support sales or deliver service in over 150 countries. We believe our business model makes us a different integrated global industrial and supports our Our company was founded in 1917 and we look goals of driving superior value for both customers forward to celebrating our 100th anniversary in and shareholders. Our business model brings 2017. We are proud of our strong culture and together a unique set of integrated capabilities and operating performance that contribute to our diverse end markets to position our company to be positive outlook as we prepare to celebrate 100 successful in a variety of economic environments. years of Oshkosh Strong!” We grew revenues and earnings per share in fiscal WILSON JONES 2016 and believe we have an outstanding opportunity President and Chief Executive Officer to grow revenues, operating income and earnings per share in fiscal 2017. We are proud to have been named to the 2016 World’s Most Ethical Company® list by the Ethisphere Institute, the global leader in defining and advancing the standards of ethical businesses. Our team members embody ethical behavior in everything they do and this award is a tribute to their diligence and commitment. A DIFFERENT INTEGRATED GLOBAL INDUSTRIAL LEVERAGING OUR FAVORABLE AND DIVERSE UNIQUE POSITION END MARKET DRIVERS LeverageBestAttributesofTwoDistinctApproaches » Defense recovery » U.S. construction slowly improving, though uneven—both residential and non-residential » Municipal spending recovering » Aging fleets in multiple markets » Significant access equipment product adoption opportunities globally » Population growth and urbanization DIVERSE INTEGRATED END MARKETS CAPABILITIES INTEGRATED ENTERPRISE APPROACH DRIVES OPPORTUNITY/ EFFICIENCY ACROSS BUSINESS SEGMENTS GLOBAL PRODUCT ENTERPRISE-WIDE OPERATIONS GLOBAL PROCUREMENT ONE OSHKOSH CULTURE DEVELOPMENT » Lean culture as a foundation AND SUPPLY CHAIN » Building a stronger and » Common product development » Enterprise-wide capacity » Diverse end markets lead to deeper Oshkosh culture process planning more stable demand; drives » Diverse and complementary » Shared expertise and technology » Inter-segment manufacturing investment by Oshkosh suppliers backgrounds » Engineering resource planning integration » Integrated enterprise » Continually developing/ » Standardized manufacturing approach allows Oshkosh acquiring talent idea and information sharing to leverage size and scale » Acting decisively for for best practices shareholders » Strategic partnerships with preferred equipment suppliers 02 OSHKOSH CORPORATION MOVE EVOLVING TO DELIVER MORE VALUE MARKET LEADER OPTIMIZE COST AND VALUE EMERGING DELIGHTING CUSTOMERS CAPITAL STRUCTURE INNOVATION MARKET EXPANSION ENHANCE CUSTOMER TARGETING ~$55 MILLION YR/YR TARGETING 15%–20% ANNUAL TARGETING 15%–20% EXPERIENCE BY: COST REDUCTION IN FY17 REVENUE FROM NEW INCREASE IN INTERNATIONAL » Increasing use of standard » Build on current practices for PRODUCTS IN FY17 SALES IN FY17 processes and tools to drive product, process and overhead » Continue innovation leadership » From ~$1.5 billion in FY16 to an consistent customer experience improvements » Further development of value/ estimated $1.75 billion in FY17 » Providing total customer care • Component commonality global products » Driving international to solutions over product life cycle • Supply chain optimization » Leverage benefits of multi- 25%–30% of Oshkosh sales » Expanding use of Advanced • Weight reduction generational product and » Growth driven by Defense and Product Quality Planning » Incrementally improve margins technology plans Access Equipment Segments » Utilizing Voice of Customer independent of volume through » Expanding our reach across to deliver superior products simplification actions the globe and solutions POSITIVE LONG-TERM OUTLOOK » Favorable market dynamics • JLTV provides multi-year visibility for Defense Convergenceoffavorablemarketdynamics • Current access equipment replacement demand headwind becomes future tailwind andbenefitsofMOVEpositionOshkoshto • Fleet ages help to drive Fire & Emergency and Commercial Segment demand » MOVE strategy will continue to drive results deliverstrongresults » Expected strong free cash flow over the cycle provides capital allocation alternatives AT A GLANCE 03 ACCESS EQUIPMENT AERIAL WORK PLATFORMS, TELEHANDLERS AND TOWING EQUIPMENT GLOBAL HEADQUARTERS IN KEY MESSAGES HAGERSTOWN, MD Targetinghigheroperatingincome marginsacrossthecycle » GLOBAL LEADER in access FOUNDED IN equipment 1969 » FOCUSED STRATEGY built on simplifying the business, continuing to lead in innovation and expanding OVERVIEW aftermarket parts and services » GLOBAL MARKET LEADER » WELL POSITIONED FOR LONG-TERM in access equipment GLOBAL SUCCESS as near-term » GLOBAL FOOTPRINT: headwind of replacement demand • 4 regional headquarters cycle becomes a tailwind and product adoption grows globally • 10 manufacturing facilities/ 4 continents • 19 sales and service centers STRATEGY • 4 parts distribution centers Drivingcashflow,creating • 4 engineering centers leverageforthenextcycle » Simplify the business to reduce » Sales through 3,500+ CUSTOMER cost and complexity LOCATIONS on 6 CONTINENTS » Expand our portfolio of » LEADER in towing and recovery aftermarket services » Build on our history of innovation FINANCIALS leadership » Managing the business through $ 3,506.5 the replacement cycle 14.3% $3,400.6 12.0% $3,120.8 12.2% $3,012.4 FY16 SALES BREAKDOWN 9.7%* 51% 23% 26% Aerial Work Platform Telehandler Other FY13 FY14 FY15 FY16* Revenue ($ in millions) OperatingIncomeMargin *Non-GAAPresults.SeeNon-GAAPtoGAAPreconciliation. 04 OSHKOSH CORPORATION DEFENSE TACTICAL WHEELED VEHICLES (TWVS), INTEGRATION & LIFE CYCLE SERVICES FOR MILITARY AND SECURITY ORGANIZATIONS AROUND THE WORLD GLOBAL HEADQUARTERS IN KEY MESSAGES OSHKOSH, WI Targetinghighsingle-digit operatingincomemargins overthenextfewyears FOUNDED IN » PROVIDER of light, 1917 medium, MRAP and heavy tactical wheeled vehicles in the world(1) OVERVIEW » WINNING STRATEGY based » The GLOBALLY recognized leader on breakthrough technologies, in TWVs: operational agility, life cycle value and defense expertise that • More than 150,000 VEHICLES delivers exceptional technical, delivered and sustained operational and economic value • Customers in more than for our military customers 20 COUNTRIES » SOLID BUDGET VISIBILITY for • Logistics and support network the multi-year, multi-billion dollar that spans 6 CONTINENTS U.S. JLTV program and other domestic programs, as well as • Comprehensive systems international market potential integration and life cycle products and services • Engineering and manufacturing STRATEGY advanced systems and Leveragingdeepexperience, components that drive value technicalexpertiseandastrong for our customers teamforthewinningapproach • Technologically advanced » Continuous investment in TWVs that provide strategic breakthrough technologies and tactical advantages for our military customers » Lean, agile operations » Focus on providing exceptional life cycle value FINANCIALS » Defense contracting and compliance expertise $3,049.7 7.4% FY16 SALES BREAKDOWN 86% 14% $1,724.5 4.4% $1,351.1 9.1% $939.8 1.0% U.S. DoD Defense FY13 FY14 FY15 FY16 International Defense, Other Revenue ($ in millions) OperatingIncomeMargin (1)Companyestimates AT A GLANCE 05 FIRE & EMERGENCY FIRE TRUCKS, AIRPORT PRODUCTS, COMMUNICATIONS VEHICLES GLOBAL HEADQUARTERS IN KEY MESSAGES APPLETON, WI Targetingdouble-digitoperating incomemarginsinthenearterm » LEADER in U.S. fire truck and FOUNDED IN global airport products(1) with 1913 industry-leading brands, products and distribution network » on operational OVERVIEW STRATEGY FOCUSED excellence, simplification and » Operations in Wisconsin continuing to lead in innovation and Florida » Aging fleets and steady growth » GLOBAL DISTRIBUTION in municipal demand support NETWORK with the strongest SOLID OUTLOOK dealer network in the industry » INDUSTRY’S INNOVATION STRATEGY AND TECHNOLOGY LEADER Leveragingthepowerofour » LEADING North American brandsandstrengthintechnology fire truck and airport products toexpandsalesandoperating manufacturer marginsglobally » Operational excellence and FINANCIALS simplification methodology to tailor the customer experience $ 953.3 » First to