Slide 1: Q2 2022 Investor Presentation
Q2 2022 INVESTOR PRESENTATION
Slide 2: Safe Harbor Statement & Disclosure
Safe Harbor Statement & Disclosure This presentation includes forward-looking comments subject to important risks and uncertainties. It may also contain financial measures that are not in conformance with accounting principles generally accepted in the United States of America (GAAP). Refer to Hyste
Slide 3: Our Businesses
Our Businesses Hyster-Yale Materials Handling, Inc. (NYSE:HY) is one company with three separately managed businesses Our Core Lift Truck Business Our Attachments Business Our Fuel Cell Business Hyster-Yale Group Bolzoni Nuvera FOR EACH BUSINESS Board of Directors CEO P&L and balance sheet Tai
Slide 4: Hyster-Yale at a Glance
Hyster-Yale at a Glance Hyster-Yale Materials Handling, Inc. (NYSE:HY) is a leading globally integrated, full-line lift truck manufacturer offering a Key Metrics In millions (except employee data) broad array of solutions aimed at LTM 6/30/2022 Lift Truck Bolzoni Nuvera meeting the specific material
Slide 5: Full Lift Truck Product Line
Full Lift Truck Product Line - Over 600 Different Truck Models Available Electric Counterbalanced Electric Narrow ICE Internal Combustion Engine (ICE) Electric Hand Trucks Rider Trucks Aisle Trucks (cushion tire) (pneumatic tire) CLASS 1 CLASS 2 CLASS 3 CLASS 4 CLASS 5 1.5T to 8.0T 1.5T to 6.0T 1.5T
Slide 6: Broad Range of Power Options, Attachments and Solutions
…with a Broad Range of Power Options, Attachments and Solutions Power Options Attachments CLASS 1, 2 & 3 CLASS 4 & 5 Clamps Forks Push Pulls Multipallets Electric Counterbalanced Rider Trucks Internal Combustion Engine (cushion tire) Rotators Electric Narrow Aisle Trucks Internal Combustion Engine (
Slide 7: Global Lift Truck Market
Global Lift Truck Market Global Lift Truck Industry Size* Lift Truck Industry Q4 2021 versus Q1 2022* (units in thousands) Long-term CAGR (2004 – 2021) = 7.3% 2,700 2,400 2,100 1,800 1,500 1,200 900 600 300 872 547 794 975 944 1,010 1,094 1,100 1,182 1,395 1,538 1,507 1,638 2,341 2,400 0 2008 2009 2
Slide 8: Global Lift Truck Market Rates of Change through 3/31/22
Global Lift Truck Market Rates of Change through 3/31/22 ( 3 & 12-month rates of change trend) Lift Truck market levels are moderating in all geographic areas from the 2021 peak North Latin America America Brazil (excluding Brazil) Western Eastern Middle Europe Europe East & Africa Asia (excluding J
Slide 9: Lift Truck Unit Class Shipments as of 3/31/22
Lift Truck Unit Class Shipments as of 3/31/22 (Industry / HY) Industry Units by Geography Industry Units by Class Industry Unit Revenue by Class Middle East & Estimated Industry Revenue Mix Asia-Pacific 6% Africa 3% Japan 4% Class 1 Class 2 Electric Electric Class 5 ICE 17% Class 1 Electric Europe 8
Slide 10: HY Lift Truck Unit Shipments as of 6/30/22
HY Lift Truck Unit Shipments as of 6/30/22 (Quarter & LTM) HY Lift Truck Units Sold by Geography HY Lift Truck Units by Class HY Lift Truck Unit Revenue by Class Asia-Pacific/ Japan China 8% 6% Class 1 Electric Class 1 Electric 20% 22% Class 5 ICE 32% Class 2 Americas Electric Class 5 ICE 55% Class
Slide 11: HY Continues to Face Significant Headwinds
HY Continues to Face Significant Headwinds Ongoing headwinds expected to affect results through 2022, new headwinds/tailwinds emerging… Logistic delays and capacity Supplier constraints China COVID component Component cost lockdowns volume inflation due to shortages commodity prices Economic Russia/
Slide 12: Results for Q2 2022 Consolidated vs. Q2 2021
Results for Q2 2022 Consolidated vs. Q2 2021 HY HY HY LTM HY LTM Consolidated revenues ($ in millions) increased 17.0% over Q2 2021 Q2 2022 Q2 2021 Variance 6/30/22 6/30/21 Variance due to an 11.5% increase in Revenues $895.4 $765.6 $129.8 $3,300.9 $2,869.8 $431.1 consolidated shipments, primarily
Slide 13: Business Prospects (Outlook)
Business Prospects (Outlook) Lift Truck Market and Bookings ($ in millions) • Lift Truck market is expected to continue to decline from historical 2021 highs for the remainder of 2022, while remaining above pre-pandemic levels • Bookings – substantial decrease anticipated during H2 2022 vs. H2 202
Slide 14: Liquidity: Hyster-Yale Priorities for Use of Cash
Liquidity: Hyster-Yale Priorities for Use of Cash Focus on Maintaining Liquidity • Unused Borrowing Capacity of INVESTMENTS ~$156m and ~$76m in Cash @ 6/30/22 • HY managing capital Lift Truck Business Fuel Cell Business expenditures, operating Expense and capital Investments to expenses and producti
Slide 15: Capital and R&D Expenditures
Capital and R&D Expenditures C A P I TA L E X P E N D I T U R E S R&D EXPENDITURES 60 140 (total $ in millions) 50 120 (total $ in millions) 40 100 80 30 60 20 40 10 20 0 0 2018 2019 2020 2021 Estimate 2018 2019 2020 2021 Estimate 2022 2022 Core Forklift Investments IT Systems Nuvera Bolzoni Core Fo
Slide 16: Target Economics Goal and Gap to Target
Target Economics Goal and Gap to Target Lift Truck Business Q2 2022 Gap to Target Economics Actual Lift Truck Operating Profit Margin % (1.4)% Expect to exceed 7% operating Margin % Variances 8.6% profit target as programs Volume % Variances* mature Manufacturing variances/other 0.6% Operating Expen
Slide 17: Hyster-Yale Strategic Projects Expected To Be Transformative
Hyster-Yale Strategic Projects Expected To Be Transformative… Priority Projects Our Core Lift Truck Business Our Attachments Business Our Fuel Cell Business Product Operations • One Company, 3 Brands • Sales of Certified E45kW and E60kW • Modular Products • North America Expansion Engines • Plant Fo
Slide 18: Lift Truck Modular and Scalable Platforms
Lift Truck Modular and Scalable Platforms Customers seek efficiency in their Launching as the Hyster® A Series and the Yale® Series N operations. Scalable configurations provide optimal solutions. 18
Slide 19: Lift Truck Telemetry and Operator Assist System Solutions
Lift Truck Telemetry and Operator Assist System Solutions Operator Assist Systems: Technologically advanced features designed to help reinforce safe and productive Telemetry: Data and analysis is becoming truck operation increasingly important to operations that help Telemetry can provide a complete
Slide 20: Lift Truck Automation Products
Lift Truck Automation Products Customers are seeing great value in operator free, continuous operations Partner Solutions Modular, Scalable Internally Developed Automation Horizontal Vertical (Balyo) (JBT) HY-automated lift trucks provide an infrastructure independent and flexible solution 20 TT
Slide 21: Objective is to Transform Commercial Competitiveness in an Evolving Market
Objective is to Transform Commercial Competitiveness in an Evolving Market Hyster-Yale Evolving Sales Transformation Customer’s HY Industry Industry-Focused Participation-Focused Advanced 360 Degree Highly Connected Transformative Requirements Approach Sales Management Selling Systems Aftersales Sol
Slide 22: Bolzoni Core Strategies: Multiple Dimensions of Growth Opportunities
Bolzoni Core Strategies: Multiple Dimensions of Growth Opportunities BOLZONI TRANSFORMATION BOLZONI GROWTH BOLZONI AMERICAS & CHINA FINANCIALS BOLZONI Transformation HY – BOLZONI SYNERGIES RENTAL & SECOND HAND ATTACHMENTS OEM RELATIONSHIP SILVER LINE LEVERAGE GLOBAL COST SOLUTION BOLZONI TECHNOLOGY
Slide 23: Nuvera Product Platforms: Integrated service / support to customers
Nuvera Product Platforms: Integrated service / support to customers Nuvera supports customers along their lengthy hydrogen implementation journey Decision Electrification Integration Design Demo Vehicle GO TO SERIES VOLUME Decision Decision Decision Vehicle Test GO ELECTRIC USE FUEL CELLS CHOOSE NUV
Slide 24: Nuvera Product Platforms: Comprehensive approach to hydrogen mobility market
Nuvera Product Platforms: Comprehensive approach to hydrogen mobility market Nuvera makes FC technology WORK for customers E-Series Fuel Cell Engines: Stacks / E-45 and E-60 Subsystems Easily integrated fuel cell module For OEMs that understand stack deployment For medium- and heavy- duty equipment
Slide 25: Valuation Approach Should Vary by Business
Valuation Approach Should Vary by Business Fuel Cell Lift Truck & Attachments Fuel Cell Business Businesses Business • Mature Cyclical Industry • Venture / Technology Industry • Market Leading Products and Position • Distinct Technology / Patents in • Operating Cash Generation Fuel Cell • Value Usin
Slide 26: HY – A Solid Investment Option
HY – A Solid Investment Option Lift Truck Bolzoni Nuvera Expect to have an increase, Expect solid operating Expect moderately reduced from significant operating profit in 2022 vs. 2021 losses in 2022, excluding losses, to a substantial operating loss impact of valuation and operating profit in Q4 20
Slide 27: HY Transformational Projects Lead to a Strong Long-Term Investment Option
HY Transformational Projects Lead to a Strong Long-Term Investment Option Through key strategic projects, HY is transforming its business using an Industry Approach to achieve financial targets Lift Truck Transformation Bolzoni Transformation Nuvera Transformation Transformative Products Transformat
Slide 28: Appendix
Appendix i) HYSTER-YALE
Slide 29: Non-GAAP Disclosure
Non-GAAP Disclosure Adjusted EBITDA and Adjusted Cash Flow before Financing are not measurements under U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures, and are not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines each
Slide 30: Non-GAAP Reconciliation Adjusted EBITDA
Non-GAAP Reconciliation Adjusted EBITDA ($ in millions) Year Ended December 31 Qtr. Qtr. Qtr. Qtr. LTM LTM Consolidated 2017 2018 2019 2020 2021 6/30/21 12/31/21 3/31/22 6/30/22 6/30/21 6/30/22 Reconciliation of EBITDA Net income (loss) attributable to stockholders $48.6 $34.7 $35.8 $37.1 $(173.0) $
Slide 31: Non-GAAP Reconciliation Adjusted EBITDA continued
Non-GAAP Reconciliation Adjusted EBITDA continued ($ in millions) Year Ended December 31 Qtr. Qtr. Qtr. Qtr. LTM LTM Bolzoni 2017 2018 2019 2020 2021 6/30/21 12/31/21 3/31/22 6/30/22 6/30/21 6/30/22 Reconciliation of EBITDA Operating Profit (Loss) $6.4 $9.5 $4.7 $1.0 $(1.8) $(0.4) $(2.2) $2.1 $3.4 $
Slide 32: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation CONSOLIDATED ($ in millions) Year Ended December 31 Qtr. LTM 2017 2018 2019 2020 2021 6/30/22 6/30/22 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operating $164.7 $67.6 $76.7 $166.9 $(253.5) $(58.9) $(152.6) activities Net cash
Slide 33: Supplemental Information
Supplemental Information Qi) HYSTER-YALE
Slide 34: Hyster-Yale's Global Footprint
Hyster-Yale’s Global Footprint Danville, Illinois Gävle, Sweden Järvenpää, Finland Homewood, Illinois Frimley, UK Commercial Attachment Parts Distribution Center Moscow, Russia Hebei, China Wuxi, China Inventory and Parts; Customer Irvine, Scotland Division Headquarters; Subsidiary Manufacture Servi
Slide 35: Overview and Sources of Revenue
Overview and Sources of Revenue A leading global lift truck manufacturer HY sales of ~ 99,900 lift truck Additional ~ 7,300 lift Large installed population truck units sold in units in LTM 6/30/22 that drives parts sales ~79,400 units sold – produced in HY plants 2021 by Sumitomo Over 960,000 lift t
Slide 36: Lift Truck Market Size Data
Lift Truck Market Size Data Lift Truck Market Size Data WITS Orders Basis (1) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Europe 265,896 278,024 312,455 327,173 380,557 445,583 411,107 222,883 299,387 368,286 North America 147,322 155,191 186,192 198,058 212,953 191,384 159,279 98,338 136,050
Slide 37: HY Product Launches
HY Product Launches Launched in Q1 and Q2 2022: Production launch of Stage V engine option on 8-18 ton for EU market. Production launch of Stage V 35 to 52-ton forklift trucks for EU market. Production launch of 35 to 52-ton Container Handler with new operator compartment and Cummins 12L engin
Slide 38: Products and Technology
Products and Technology Primary industry trends are creating significant opportunities to use product and technology development to offer breakthrough solutions S T R AT E G I C P R O J E C T S Modular, Low-intensity Electrification Fuel cells Telemetry Operator assist Automation scalable products s
Slide 39: Enhanced Distribution Capabilities Intended to Increase Competitive Advantage
Enhanced Distribution Capabilities Intended to Increase Competitive Advantage Independent Dealer Network Drives Competitive Value Scaling Global Distribution to Achieve HY Strategies Increasing HY engagement in the distribution process to deliver an “As One” customer experience with our dealer partn
Slide 40: Life Cycle Costs
Life Cycle Costs Typical Truck Cost/Hour* Factors Impacting Low Cost of Ownership Productivity Operator Ergonomics/ fatigue Auto functions 69% Automated trucks Energy usage Alternative powertrains Fuel Internal Combustion Engine to Electric Rider 11% Mode control Cost/hour Fleet management Service &
Slide 41: Distribution Engagement
Distribution Engagement Independent Exclusive Entrepreneurial Profitable Committed partner Dual-line or single Enhancing performance Strengthening the distribution footprint Dealer Excellence programs Industry-focused sales support Dealer alignment Competitor acquisitions Term-based contra
Slide 42: Strong Base and Opportunities to Leverage Materials Handling Solutions
Strong Base and Opportunities to Leverage Materials Handling Solutions PORTFOLIO PRODUCTS One of the world’s leading of the Bolzoni Group(1) manufacturers of lift truck Lift tables 3% attachments, forks and lift tables, cylinders and transmissions with an extensive product range Transmissions 22% Cy
Slide 43: Bolzoni Has a Strong OEM Foundation
Bolzoni Has a Strong OEM Foundation OEM OEM OEM TOP CUSTOMERS(1)(2) SALES BY REGION(1)(2) SALES BY PRODUCT LINE(1)(2) HOOK-ON SIDE SHIFTERS OEM 5 3% OEM Other JAPIC 6% 10% 16% OEM 4 OEM 1 INTEGRAL 13% 34% SIDE EUROPE FORKS SHIFTERS & 49% 38% AMERICAS CARRIAGES OEM 3 45% 35% 13% OEM 2 27% 11% ATTACHM
Slide 44: Nuvera Is a Transformational Opportunity
Nuvera Is a Transformational Opportunity At a Glance: Application Portfolio • E-45kW as well as E-60kW Leading, Patented Technology Technology Fuel Cell engines SMVIC- certified Experience • First bus with E-series • 75+ engineers engine MIIT certified Demand Tapered in Short-term • 8th generation o
Slide 45: Nuvera Has a Distinctive Place Within Hyster-Yale
Nuvera Has a Distinctive Place Within Hyster-Yale Growing • Venture business, with strong commercialized products, hydrogen fuel focusing on gaining sales cell market • Important supplier fit as part of HY’s focus on a broad provides range of alternative power systems for lift trucks, with a signifi
Slide 46: Technology: Optimized Fuel Cell Engine Design
Technology: Optimized Fuel Cell Engine Design Nuvera FC Engines enable commercial and industrial vehicle electrification Embedded controls For ease of integration, reliability, and durability Unique Stack architecture High efficiency and power density Telemetry Effective remote monitoring of FC engi
Slide 47: Product Platforms: examples
Product Platforms: examples Dannar® Mobile Power Station: Hyster® Toploader: Demo unit ZRHE / KingLong bus: FC concept in development Operational and in Demonstration Off-road equipment Trucks Application Buses Focus Delivery Vans & Commercial Vehicles Markets Specialty/Utility Vehicles H2