Oshkosh Truck Corporation 2007 Annual Report Exponential Growth

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Oshkosh Truck Corporation 2007 Annual Report Exponential Growth Bold Moves. Smart Growth. Oshkosh Truck Corporation 2007 Annual Report Exponential growth put this year and global leadership over and above all the rest. Net sales Operating income ACCESS (Dollars in millions) (Dollars in millions) EQUIPMENT $2,539.5 $268.4 2005 2006 2007 2005 2006 2007 First year of ownership; business First year of ownership; business was acquired in December 2006. was acquired in December 2006. Competitive advantages • Global leader in aerial work platforms and telehandlers • Outstanding global distribution and market penetration • Premium brand recognized for strong performance and quality • Exclusive worldwide manufacturer of Caterpillar® and Same Deutz-Fahr brand telehandlers • Single-source solution provider • Marketing synergies between JLG’s military telehandler business • Innovative equipment designs that integrate cutting, welding, and Oshkosh’s strong defense group communications and other work systems • Leader in global aftermarket support Industry outlook • Strong international demand for access equipment across • U.S. residential construction expected to remain weak in fi scal diverse industries and applications 2008; non-residential construction expected to soften in second half of fi scal 2008 • International growth expected to be highest throughout China, India, Eastern Europe and other emerging countries • Strong markets attracting new competitors due to commercial and infrastructure construction • Increased emphasis on safety and productivity helping drive demand Products and services Aerial work platforms (AWP): Telescopic boom lifts; articulated boom lifts; mast-style boom lifts; towable boom lifts; scissors lifts; vertical personnel lifts; stock-picking products. Telehandlers: All-wheel steer telehandlers; rear-pivot steer telehandlers; precision placement telehandlers; drop-deck trailers. Services: Parts distribution, service, maintenance, reconditioning, remanufacturing, training, equipment fi nancing and leasing. JLG® aerial work platform SkyTrak® telehandler Toucan™ mast-style boom lift 74004 OT07AR-Cover.indd BC2 12/4/07 6:31:18 PM Net sales Operating income DEFENSE (Dollars in millions) 2-yr CAGR 15.5% (Dollars in millions) 2-yr CAGR 8.0% $1,416.5 $242.2 $245.0 $1,317.2 $210.2 $1,061.1 2005 2006 2007 2005 2006 2007 CAGR: compound annual growth rate Defense segment sales grew 7.5% in fi scal Operating income margin decreased to 17.3% as 2007 driven by continuing demand for new and the business moved toward a sales mix of lower remanufactured tactical trucks, partially offset margin contracts. by lower aftermarket parts & service sales. Competitive advantages • Broad product line; equipment payload capacities from 21/2 • Flexible manufacturing capabilities with signifi cant vehicle to 70+ tons production, remanufacturing and service capacity • Strong brand recognized for superior performance and reliability • Teaming agreement with Ceradyne, Inc., and Ideal Innovations, Inc. (I-3) to offer The Bull™ EFP-resistant MRAP vehicle for • Global service network supports troops in theater of operations protecting troops • Innovation leadership includes development of ProPulse® diesel- electric drive, on-board vehicle power, TAK-4® independent suspension system, TerraMax™ unmanned ground vehicle and Joint Light Tactical Vehicle (JLTV) concept design The Bull™ is a trademark of I-3. Industry outlook • Strong defense funding and supplemental contracts driving • Expanded parts and service requirements on global scale; substantial vehicle volume emphasis on remanufacturing U.S. fl eet to restore value • U.S. Department of Defense planning for continued signifi cant • Increased support required for Army Reserve and National Guard troop deployments for 15 or more years • Sustained demand for technology features such as unmanned • Militaries require cab armor and troop carriers to sustain and vehicles, IED and EFP threat protection, crew survivability, protect troops in Iraq, Afghanistan and elsewhere; extensive reduced maintenance and network-centric vehicles wear on vehicles from extended use in harsh climates • Homeland Security and disaster readiness initiatives continue • Increased Army demand for heavy-payload tactical trucks to to drive global demand support modular brigade concept Products and services Heavy Expanded Mobility Tactical Truck (HEMTT); HEMTT-Load Handling Systems (LHS); Palletized Load System (PLS) trucks and trailers; Logistics Vehicle System Replacement (LVSR); Heavy Equipment Transporter (HET); Medium Tactical Truck (MTT); Medium Tactical Vehicle Replacement (MTVR); Mine Resistant, Ambush Protected (MRAP) vehicles; wheeled tankers; armored personnel carriers; high-mobility trailers; simulator shelters; remanufacturing; armoring; and worldwide integrated logistics support. Oshkosh® Palletized Load System (PLS) truck Oshkosh® Medium Tactical Vehicle Replacement (MTVR) Oshkosh services equipment at company facilities and on military bases in Iraq, Afghanistan and around the world. 74004 OT07AR-Cover.indd BC2 12/4/07 6:31:18 PM Net sales Operating income FIRE & (Dollars in millions) 2-yr CAGR 16.5% (Dollars in millions) 2-yr CAGR 16.2% $1,142.2 $107.5 EMERGENCY $961.5 $90.0 $841.5 $79.6 2005 2006 2007 2005 2006 2007 Fire & Emergency segment sales grew 18.8% in fi scal The segment’s operating income margin was 2007 with strong performances by Pierce, Airport equivalent with the prior year at 9.4%. Products, Jerr-Dan and the full-year contribution of Oshkosh Specialty Vehicles. Competitive advantages • Innovation leader and #1 worldwide brand of fi re and • Strong distribution and service networks rescue apparatus • Introduction of Pierce Ultimate Confi guration (PUC), • Leading global position for ARFF and airport snow-removal multi-purpose response system; surging demand for innovative vehicles new Velocity™ and Impel™ custom chassis • Outstanding reputation for design and safety innovations • Comprehensive product lines for fi re and Homeland Security as well as customer service applications • America’s top-selling brand of towing and recovery equipment • Market leadership in mobile medical, broadcast and command vehicles Industry outlook • Market softness after 2007 diesel engine emissions standards • Strong demand for ARFF vehicles in China and other change is expected to continue into fi scal 2008, slightly affecting emerging economies fi re truck and recovery vehicle demand • Defi cit Reduction Act (DRA) has negatively impacted mobile • Municipal spending expected to be fl at or lower in fi scal 2008 medical vehicle market • Increased general emergencies driving demand for more multi- • Federal mandate for High Defi nition TV broadcasting by 2009 purpose rescue/response vehicles, added storage space and expected to drive demand for new mobile broadcast units integration of communications systems Products and services Custom and commercial fi re apparatus; rescue and homeland security apparatus; aircraft rescue and fi refi ghting (ARFF) vehicles; ambulances; snow blowers and plow trucks; towing and recovery equipment; mobile broadcast and mobile medical vehicles; fi nancing; aftermarket service; training. Pierce® Hazardous Materials Command unit Oshkosh® Aircraft Rescue and Firefi ghting (ARFF) vehicle Medtec® ambulance 74004 OT07AR-foldout.indd BC1 12/5/07 2:25:35 PM Net sales Operating income COMMERCIAL (Dollars in millions) 2-yr CAGR 7.2% (Dollars in millions) 2-yr CAGR 55.7% $1,190.3 $1,248.3 $66.2 $1,085.7 $57.7 $23.8 2005 2006 2007 2005 2006 2007 Sales for the Commercial segment grew 4.9% Operating income margin declined to 4.6% due in fi scal 2007 due to strong U.S. refuse collection to lower sales in the concrete mixer business vehicle sales and the inclusion of a full year of and restructuring costs in the European refuse IMT sales. collection vehicle business. Competitive advantages • No. 1 worldwide manufacturer of refuse collection vehicles • Industry-changing Revolution® mixer drums increase productivity/ payload capacity for concrete producers • No. 1 North American manufacturer of concrete mixers and batch plants • Extensive sales and service networks • Leader in service vehicle and truck-mounted crane markets • Large installed base provides strong aftermarket parts and service opportunities • Total solution provider for concrete mixers, refuse bodies, batch plants, all-make parts and service Industry outlook • U.S. residential construction expected to remain weak in fi scal • Route consolidation in U.S. refuse collection 2008; non-residential construction expected to soften in second half of fi scal 2008 • Fleet purchases driven by need for operational simplicity, low cost of maintenance and ownership • Municipal spending expected to be fl at or lower in fi scal 2008 • Consolidation continues among large multinational concrete • 2010 emission standards change likely to boost pre-buy sales producers and U.S. refuse haulers activity starting in late calendar 2008 Products and services Mixers: Rear-discharge mixers; front-discharge mixers; lightweight Revolution® mixer drums; concrete batch plants; all-make parts; aftermarket service; training; fi nancing. Refuse: Refuse collection vehicles; rear loaders; front loaders; side loaders and automated mobile and stationary compactors; demountable containers and container-handling equipment; bin lifters; all-make parts; aftermarket service; training; fi nancing. Industrial service: Mechanics trucks; tire service trucks; lubrication trucks; telescopic and articulating truck-mounted cranes; catch basin cleaners; hydraulic loaders. London®
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