FULL THROTTLE OSHKOSH TRUCK CORPORATION 2004 ANNUAL REPORT NET SALES OPERATING INCOME AND PERCENT GROWTH AND PERCENT GROWTH (DOLLARS IN MILLIONS) (DOLLARS IN MILLIONS) $2,262.3 $180.4 (17.5%) (39.6%) 2004 2004 $1,926.0 $129.2 (16.3%) 2003 (10.5%) 2003 $1,743.6 $111.1 (13.0%) 2002 (20.6%) 2002 $1,445.3 $98.3 2001 (8.7%) 2001 (0.2%) $1,329.5 $98.1 2000 (13.6%) 2000 (28.7%) SUMMARY FINANCIAL HIGHLIGHTS(1) OSHKOSH TRUCK CORPORATION SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA. FISCAL YEARS ENDED SEPTEMBER 30. (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2000(9)(10) 2001(10)(11) 2002(10)(12) 2003(12) 2004(7)(12) NET SALES $ 1,329,516 $ 1,445,293 $ 1,743,592 $ 1,926,010 $ 2,262,305 OPERATING INCOME 98,051 98,296 111,118 129,199 180,410 INCOME FROM CONTINUING OPERATIONS(2)(3) 48,508 50,864 59,598 75,620 112,806 PER SHARE ASSUMING DILUTION(2)(3) 1.47 1.49 1.72 2.16 3.13 INCOME FROM DISCONTINUED OPERATIONS(4) 2,015 - - - - PER SHARE ASSUMING DILUTION(4) 0.06 - - - - NET INCOME(2)(3)(4) 49,703 50,864 59,598 75,620 112,806 PER SHARE ASSUMING DILUTION(2)(3)(4) 1.51 1.49 1.72 2.16 3.13 TOTAL ASSETS 796,380 1,089,268 1,024,329 1,083,132 1,452,414 NET WORKING CAPITAL (DEFICIT)(5)(6)(7) 76,500 123,949 33,964 (1,436) 31,026 LONG-TERM DEBT (INCLUDING CURRENT MATURITIES)(5)(6)(7)(8) 162,782 294,080 149,958 1,735 3,851 SHAREHOLDERS’ EQUITY(8) 301,057 347,026 409,760 518,863 636,093 BOOK VALUE PER SHARE(8) 9.03 10.38 12.06 14.88 18.00 BACKLOG 608,000 799,000 908,000 1,205,000 1,551,000 EPS AND PERCENT GROWTH (DOLLARS IN MILLIONS) TABLE OF CONTENTS $3.13 (44.9%) 2004 LETTER TO SHAREHOLDERS 2 $2.16 POWER 8 (25.6%) BUSINESS OVERVIEW 10 2003 OVERDRIVE 12 $1.72 FUEL 18 (15.4%) 2002 DIRECTORS AND OFFICERS 20 $1.49 MANAGEMENT’S DISCUSSION & ANALYSIS 23 (1.4%) REPORT OF REGISTERED INDEPENDENT 2001 PUBLIC ACCOUNTING FIRM 44 $1.47 CONSOLIDATED FINANCIAL STATEMENTS 45 2000 (23.5%) SHAREHOLDERS’ INFORMATION 77 Please refer to the definition of "markets" and forward-looking statements on page 23. All references to "markets" and forward-looking statements made in this 2004 annual report should be read in conjunction with this disclosure. (1) All references to per share amounts have been restated to (6) In fiscal 2004, the Company borrowed $80,000 and for fiscal 2000 and 2001, respectively: operating income — reflect the two-for-one split of the Company’s Common Stock €15,000 under its revolving credit facility to acquire JerrDan $104,580 and $105,483; income from continuing operations — effected on August 13, 2003 in the form of a 100% stock dividend. and BAI, respectively. On September 29, 2004, the Company $54,646 and $57,522; income from continuing operations per replaced its $170,000 secured revolving credit facility with a share assuming dilution — $1.66 and $1.68; net income — (2) Fiscal 2000 includes after-tax charges of $820 ($0.02 per new unsecured five-year $500,000 revolving credit facility, $55,481 and $57,522; net income per share assuming share) related to early retirement of debt. Fiscal 2003 results which may be increased to $750,000 under certain conditions. dilution — $1.70 and $1.68; and amortization of goodwill, include a $3,945 after-tax charge ($0.11 per share) related to purchased intangible assets and deferred financing costs — the payment of the call premium and related costs and the (7) On July 8, 2004, the Company acquired for $79,854 in cash $5,489 and $5,800. write-off of capitalized deferred financing costs due to the (subject to certain post-closing working capital adjustments) all of September 19, 2003 early retirement of the Company’s the issued and outstanding capital stock of JerrDan. On July 29, (11) On October 30, 2000, the Company acquired for $14,466 $100,000 of 8 3/4% senior subordinated notes due March 2008. 2004, the Company acquired for €6,282 ($7,635) in cash, plus in cash, all of the issued and outstanding capital stock of Fiscal 2003 results also include a $3,400 reduction in income debt assumed of €10,891 ($13,238), 75% of the outstanding Medtec. On March 6, 2001, the Company purchased certain tax expense and corresponding increase in income from quotas (ownership interests) of BAI. Amounts include acquisition assets from TEMCO for cash of $8,139 and credits to the continuing operations and net income and related per share costs and are net of cash acquired. Fiscal 2004 results include seller valued at $7,558, for total consideration of $15,697. amounts ($0.10 per share) as a result of the September 2003 sales of $35,408 and operating income of $1,189 related to On July 25, 2001, the Company acquired for $137,636 in cash favorable settlement of an income tax audit covering fiscal 1999 JerrDan and BAI following their acquisition in July 2004. all of the issued and outstanding capital stock of the Geesink through 2001. Fiscal 2004 results include a $204 after-tax See Note 4 of the Notes to Consolidated Financial Statements. Norba Group. Amounts include acquisition costs and are net charge ($0.01 per share) related to the write-off of capitalized of cash acquired. deferred financing costs due to the September 29, 2004 (8) On November 24, 1999, the Company prepaid $93,500 of refinancing of the Company’s bank credit agreement. See (6). term debt under its senior credit facility with proceeds from the (12) In fiscal 2002, the Company increased the margin sale of 7,590,000 shares of Common Stock. On July 23, 2001, percentage recognized on the MTVR contract by one (3) Fiscal 2001 includes a $1,727 foreign currency transaction gain the Company amended and restated its senior credit facility and percentage point as a result of a contract modification and in connection with euros acquired prior to the purchase of the borrowed $140,000 under a new term loan under its senior favorable cost performance compared to previous estimates. Geesink Norba Group and includes a $1,400 reduction in income credit facility in connection with the acquisition of the Geesink In fiscal 2003 and 2004, the Company recorded cumulative tax expense related to settlement of certain income tax audits. Norba Group. In fiscal 2002, the Company prepaid $6,000 of catch-up adjustments to increase the overall margin its term loan A and $126,250 of its term loan B from cash percentage on the MTVR contract by 1.2 and 2.1 percentage (4) In fiscal 2000, the Company recorded a $2,015 after-tax generated from operating activities. See (5). points, respectively, as a result of favorable cost gain resulting from a technology transfer agreement and performance compared to previous estimates. These collection of previously written-off receivables related to the (9) On November 1, 1999, the Company acquired assets, changes in estimates, recorded as cumulative catch-up Company’s former bus chassis joint venture in Mexico. assumed certain liabilities and entered into related non- adjustments, increased operating income, net income and compete agreements for Kewaunee for $5,467 in cash. net income per share by $4,264, $3,000, and $0.08 in fiscal (5) On September 19, 2003, the Company prepaid its $100,000 On April 28, 2000, the Company acquired for cash all of the 2002; $9,235, $5,818 and $0.17 in fiscal 2003; and $19,457, of 8 3/4% senior subordinated notes due March 2008 with issued and outstanding capital stock of Viking for $1,680. $12,258 and $0.34 in fiscal 2004, respectively, including borrowings under its bank credit facility and from available cash. $1,658, $1,044 and $0.03 in 2002; $5,717, $3,602 and $0.10 Fiscal 2002 cash from operating activities, including an $86,300 (10) In fiscal 2002, the Company adopted provisions of SFAS in fiscal 2003 and $16,161, $10,181 and $0.28 in fiscal 2004, On the Cover: The new Pierce® performance-based payment received on September 30, 2002 No. 142 which eliminated the amortization of goodwill and respectively, relating to prior year revenues. See Note 1 of the ® on the Company’s MTVR contract, was principally used to indefinite-lived assets. Had SFAS No. 142 been in effect for the Notes to Consolidated Financial Statements. Quantum , the company’s flagship prepay long-term debt. See (8). earliest period presented, results would have been as follows chassis, was redesigned in 2004. 1 ROBERT G. BOHN Chairman, President and Chief Executive Officer Oshkosh Truck Corporation FULL THROTTLE AN OUTSTANDING YEAR We also closed on three acquisitions within the span of six Fiscal 2004 has been an outstanding year for Oshkosh months: JerrDan Corporation, Brescia Antincendi International Truck Corporation. For the first time in company history, sales S.r.l. (“BAI”) and Concrete Equipment Company, Inc. topped the $2 billion mark at $2.3 billion, up 17.5 percent from (“CON-E-CO”). By adding JerrDan to our corporate fiscal 2003. We generated $112.8 million in net income, up portfolio, we moved into the towing and recovery equipment 49.2 percent year-over-year, and our return on invested capital market. We’re pleased with the strength of JerrDan’s brand and reached 18.3 percent, up from 14.4 percent in fiscal 2003.