Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Q4 2023 Earnings Presentation
64 slides from Hyster-yale's earnings presentation, February 2024
Slide 1: Q4 2023 Investor Presentation
Q4 2023 INVESTOR PRESENTATION ATTACHMENTS LIFT TRUCKS FUEL CELLS Transforming the way the world moves materials from Port to Home
Slide 2: Safe Harbor Statement and Disclosure
Safe Harbor Statement and 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 Hys
Slide 3: Q4 2023 Quarterly Overview
Q4 2023 Quarterly Overview th] HYSTER-YALE MATERIALS HANDLING
Slide 4: Hyster-Yale Materials Handling (NYSE: HY)
Hyster-Yale Materials Handling (NYSE: HY) One company with three businesses, each offering a full line of products and services 1 LIFT TRUCK 2 BOLZONI 3 NUVERA Core Business Attachment Business Fuel Cell Business FOR EACH BUSINESS Board of Directors CEO P&L and balance sheet Tailored incentive
Slide 5: Key Takeaways – Q4 2023
Key Takeaways – Q4 2023 GROWING RESULTS HEALTHY BACKLOG IMPROVING FY ’24 OUTLOOK $1.0B Increasing value: FINANCIAL LEVERAGE Higher Operating revenue Avg. sales price/ 55% profit expected +4% vs. PY backlog unit debt to total capital vs. strong PY +16% vs. PY down from 71% at $48.7M Q4 ‘22 On-hand in
Slide 6: Results for Q4 2023 vs. Prior Year
Results for Q4 2023 vs. Prior Year CONSOLIDATED SEGMENTS HY HY Lift Truck(1) Bolzoni(1) Nuvera(1) ($M) Q4 2023 Q4 2022 Variance Q4 2023 Q4 2023 Q4 2023 Shipments 23,600 27,100 (3,500) Revenues $1,027.2 $985.2 $42.0 $981.5 $87.3 $0.2 Operating Profit (Loss) $48.7 $19.8 $28.9 $54.2 $2.6 ($8.0) Net Inc
Slide 7: Quarterly Cash and Debt Positions
Quarterly Cash and Debt Positions Q4 2023 CAPITAL ALLOCATION DEBT TO TOTAL CAPITAL IMPROVING VS. Q3 ’22 PEAK ($M) As of 12/31/23: 500 Net Debt Debt to Total Capital % 80% • ~$79m in Cash 415 70% • Unused Borrowing Capacity of ~$270m 400 • Ongoing working capital reduction and cost 55% 60% 300 contro
Slide 8: 2024 Outlook
2024 Outlook Projected Higher Consolidated Operating Profit; Comparable Net Income LIFT TRUCK BOLZONI NUVERA FUEL CELLS • Revenues & production and shipment rates expected to • Modest revenue • Improved sales activity vs. increase vs. PY improvement anticipated vs. FY ’23 forecasted FY ’23 as attach
Slide 9: Company Overview & Strategy
Image Placeholder Use same image as slide 1; blend of all brands/solutions Company Overview & Strategy
Slide 10: Hyster-Yale Materials Handling (NYSE: HY)
Hyster-Yale Materials Handling (NYSE: HY) One company with three businesses, each offering a full line of products and services 1 LIFT TRUCK 2 BOLZONI 3 NUVERA Core Business Attachment Business Fuel Cell Business ($M) FY 2023 Nuvera ~0% CONSOLIDATED Revenues $4,118 SALES BY FINANCIALS Operating Prof
Slide 11: Global Leader in Material Handling Solutions
Global Leader in Material Handling Solutions Serving customers globally, regionally and locally GLOBAL EMPLOYEES • Lift Truck: 7,200 • Bolzoni: 1,200 • Nuvera: 200 GLOBAL INDUSTRY COVERAGE • Industry application focus • Full-range of classes 1 to 5 lift trucks • Integrated technologies • Full-range
Slide 12: 100+ Years of Leading Innovations and Operational Excellence
100+ Years of Leading Innovations and Operational Excellence Full Range of Products, Power Options and Solutions 4,500 lbs C A PAC IT Y 100,000+ lbs ELECTRIC INTERNAL COMBUSTION (ICE) CLASS 1 CLASS 5 CB* WAREHOUSE EQUIPMENT COUNTERBALANCED BATTERY/FUEL CELL ICE CLASS 1 CLASS 2 CLASS 3 CLASS 4 CLASS
Slide 13: Investment Thesis
Investment Thesis Focused business portfolio and capabilities for long-term growth ATTRACTIVE GLOBAL MARKETS Support solid long-term growth potential in our 3 businesses TECHNOLOGY-ENABLED MATERIAL HANDLING SOLUTIONS Solving our customers’ most difficult problems HYDROGEN FUEL CELL SOLUTIONS Diverse
Slide 14: Well-Defined, Long-Term Strategies Across All Businesses
Well-Defined, Long-Term Strategies Across All Businesses Service plus technology capabilities enhance the core and accelerate performance ENABLE GROW THE CORE ENHANCE POSITION FOR STAKEHOLDERS’ • Growth through COMPETITIVE FUTURE GROWTH SUCCESS Economic engine ADVANTAGE • Accretive capital • Custome
Slide 15: Unique Business Model
Unique Business Model Efficient capital deployment targeting high returns Focus on FINANCIAL investments TARGETS in areas of expertise >20% over ROTCE* investments CAPITAL EFFICIENT INVESTMENTS: that require high capital OPTIMIZE CAPITAL DEPLOYED: 7% • Modular, scalable product platforms • Independe
Slide 16: Operating Structure
Operating Structure Optimized to deliver customer-centric solutions through our 3 businesses CUSTOMERS DISTRIBUTION INTERNAL CAPABILITIES • Global • Exclusive, independent dealers • Modular, scalable platforms • Full product line • Direct sales to major accounts • “Center of gravity” suppliers • Sol
Slide 17: Global Mega Trends Accelerate Growth
Global Mega Trends Accelerate Growth Long-term growth rates supported by market shifts and HY’s unique capabilities TECHNOLOGY SOLVING CHALLENGES PRODUCTIVITY ELECTRIFICATION Industry-specific approach Fuel cells and smart to application challenges batteries EMPLOYEE SAFETY INFORMATION AS A Operator
Slide 18: Lift Trucks are Integral to Our Lives
Lift Trucks are Integral to Our Lives Products are handled numerous times by a forklift before they reach the end customer Note: Forklift touches are estimates. Actual usage may vary per segment and customer 18
Slide 19: Our Economic Engine Drives Compounding Growth
Our Economic Engine Drives Compounding Growth Five core strategies to accelerate growth, each supported by strategic projects Worldwide Geographic Volume Distribution Strength and Product Economies to Drive Market Share Balance of Scale Provide lowest cost of ownership, while enhancing productivity
Slide 20: Strategically Focused with Disciplined Execution
Strategically Focused with Disciplined Execution Connecting strategies to key projects within our businesses to achieve growth objectives PROJECTS FOR REVENUE GROWTH PROFIT GROWTH CASH GENERATION CAPITAL DEPLOYMENT • Modular, scalable • Pricing • “Center of gravity” • Independent products suppliers
Slide 21: 1 Company, 3 Synergistic Businesses
1 Company, 3 Synergistic Businesses Executing on growth strategies with a margin and cash emphasis Central & Regional Structure • Modular, Scalable Platforms • Industry Approach & Solutions Technology to Address Customers’ Challenges • Leverage the HY Distribution Network LIFT TRUCK BOLZONI NUVERA F
Slide 22: Long-Term Financial Objectives
Long-Term Financial Objectives
Slide 23: Strategy Execution Accelerating Progress
Strategy Execution Accelerating Progress All businesses contributing meaningfully to meet long-term targets REVENUE GROWTH OPERATING PROFIT WORKING CAPITAL ROTCE MARGINS GDP ++ 7% Sales 15% Sales >20% • Global market • Modular and • Supply chain and • Increased and expansion scalable vehicles operat
Slide 24: Significant Opportunities Remain
Significant Opportunities Remain Achieve long-term targets, sustain performance, intensify cash flow focus Revenue Operating Profit Margins ACHIEVE TARGETS $M 6,000 GDP++ 8% 7% Target • Modular, scalable products 6% 4% • Industry-specific solutions 4,000 2% • Pricing agility and cost management 0% •
Slide 25: Accretive Capital Allocation Framework
Accretive Capital Allocation Framework Generating consistent cash flows and making disciplined investments Efficient Fixed Cost Effective Working Capital Productivity Utilization Capital Management Strong Operating Cash Flow Maintenance CapEx Routine Debt Service Focus on ~ equal to depreciation bal
Slide 26: Our Path to Long-Term Value Creation
Our Path to Long-Term Value Creation Consistently strong core financial performance enhanced by fuel cell growth business Future Revenue Valuation Working >$5B Multiplier Capital • A leader in the Operating 15% Sales Operating Profit & Margin emerging hydrogen FY 2023 Profit >$350M / 7% economy Reve
Slide 27: HY - A Solid Long-Term Investment Option
HY - A Solid Long-Term Investment Option Innovative, Disciplined, Long-term focused Company • Venture / technology industry provides significant growth opportunities FUEL CELL • Next generation technology / patents in fuel cell BUSINESS • Building for the future • Focused on increasing revenues near
Slide 28: Lift Truck Business
Lift Truck Business (i) HYSTER-YALE MATERIALS HANDLIN 6
Slide 29: Accelerating Financial Performance
Accelerating Financial Performance Diversified across regions and product classes Lift Truck Revenues Unit Revenue by Class Operating Profit Margin ($B) 3.9 23% 3.1 3.4 Class 1 Electric Target 7% 2.7 2.9 8% 6% 5.9% 11% 4% 3.2% Class 2 Electric 2.7% 2% 7% 0% 2019 2020 2021 2022 2023 Class 3 Electric
Slide 30: Revenue Diversification
Revenue Diversification Full-line global lift truck manufacturer serving diverse end markets 2023 Retail Lift Truck 2023 Lift Truck 2023 Lift Truck Sales by Product Shipments by End Market(2) Distribution Channel Mix 6% 46% 37% 16% 19% 81% Service, Rental ICE(1) Retail and Food and Major Independent
Slide 31: Global Lift Truck Industry
Global Lift Truck Industry Growth linked to worldwide movement of all goods Global Lift Truck Industry Size* Industry Units by Class Estimates 7% (units in thousands) 18% 7-Year CAGR (2016 – 2022) = Class 2 Electric 2,400 10.3% 2,341 2,183 Class 1 Electric 2,019 2,100 1,912 1,944 1,638 1,800 1,538 1
Slide 32: Lift Truck Unit Bookings and Revenue by Class
Lift Truck Unit Bookings and Revenue by Class Diversified across regions and product classes Industry Bookings by Geography HY Bookings by Geography 11% 6% Asia-Pacific / Japan China Asia-Pacific / Japan 5% Takeaway EMEA 30% EMEA HY unit bookings 24% China 39% Americas mix weighted _________________
Slide 33: Growth Potential On Top of GDP+ Market
Growth Potential On Top of GDP+ Market Evolving capabilities align with market growth elements Hyster-Yale Competitive Advantages Evolutionary advantages enhance the core • Revolutionary shifts accelerate performance Technology to Enhance User Outcomes Revolutionary Robotics Modular, Scalable GDP++
Slide 34: Key Opportunities for Market Share Growth
Key Opportunities for Market Share Growth Leverage global capabilities to achieve share potential across markets Lift Truck Market Penetration Americas Warehouse vs. Industrials Total Market Size Total Market Size China(1) Market Growth Growth Opportunity Opportunity Americas EMEA JAPIC Warehouse In
Slide 35: Expanding Solutions Address Global Industry Requirements
Expanding Solutions Address Global Industry Requirements Enhancing competitive capabilities across product breadth, scalability and technology MODULAR / EMERGING BREADTH ELECTRIFICATION SCALABLE PLATFORM TECHNOLOGIES Image Simplifies operations; Rapidly adding electrification Complete product range
Slide 36: Core Product Strategy – Modular & Scalable Platforms
Core Product Strategy – Modular & Scalable Platforms Far-reaching effects across all Lift Truck Business operations Modular, Scalable Products: Modular, Scalable Shipments • Configurable to meet exact customer needs (units) Americas EMEA Asia-Pacific (coming ‘24) 6,000 • Simplified assembly operatio
Slide 37: Solving Customers’ Issues with Emerging Technology Solutions
Solving Customers’ Issues with Emerging Technology Solutions Technology innovation driving breakthrough results DATA ANALYTICS SMART MACHINES FULL AUTOMATION ZERO EMISSIONS (ZE) Telemetry data helps Operator assist systems Robotic lift trucks lower Lithium-ion & Hydrogen improve operator safety, hel
Slide 38: Leveraging Independent Distribution to Win
Leveraging Independent Distribution to Win Delivering exceptional customer experience while increasing capital efficiency • Differentiated AsOne value to customer Independent • OEM and dealer aligned business models DISTRIBUTION SYNERGY • Optimizes long-term strategy and agility Model • Capable dual
Slide 39: Lift Truck Business is the Core Platform for Delivering Value
Lift Truck Business is the Core Platform for Delivering Value Vehicle for high-margin solutions and service growth Key Takeaways • Experienced, global market leader • Mature lift truck industry provides core platform for growth • GDP+ market growth with HY share upside potential • Strategically posi
Slide 40: Attachments
Attachments Need a good Bolzoni photo on a Hyster truck
Slide 41: Bolzoni Attachments are Critical to Productivity Solutions
Bolzoni Attachments are Critical to Productivity Solutions Award-winning Attachment Business makes HY a leading player in the industry Focused on serving lift truck OEMs* and other attachment customers using an industry approach and dealer collaboration *OEM: Original Equipment Manufacturer 41
Slide 42: Accelerating Financial Performance
Accelerating Financial Performance Diversified across regions and product classes Net Sales Net Sales by Product Line Operating Profit Margin ($M) 375 2% 345 348 356 8% Target 7% Lift Tables 284 6% 53% 4.1% Attachments 4% 2% 1.4% 0.4% 1.7% 2019 2020 2021 2022 2023 0% (0.5%) 8% (2%) Forks 2019 2020 2
Slide 43: Significant Global Growth Opportunities
Significant Global Growth Opportunities Leveraging high-quality products and deep industry experience GROWTH Bolzoni Attachment Market Penetration* AREAS OF FOCUS EXPANDING MARKET SHARE • Americas and JAPIC markets • Products well aligned with market segment needs Total Market Size INDUSTRY FOCUS Gr
Slide 44: Driving Growth, Industry by Industry
Driving Growth, Industry by Industry Leveraging high-quality, respected brands and products in growth industries HOME AUTOMOTIVE BEVERAGE PULP & PAPER APPLIANCES & 3PL* Meyer Bolzoni Auramo Preferred supplier Innovative double-pallet handler High-tech carton clamp Paper roll clamps of high-performan
Slide 45: Clear Path to Achieving Profitability Goals
Clear Path to Achieving Profitability Goals Substantial opportunities to reach consistent profitability at target margin Addressable Market Growth Product Margin Expansion OEM Top Customers Increase in higher-margin, 5% Increase Americas and JAPIC market Other OEM participation and share technologic
Slide 46: Bolzoni, a Strategic Multiplier for HY
Bolzoni, a Strategic Multiplier for HY Disciplined execution and Sell to operational Working Everyone; efficiencies capital and deepen and cash diversify relationships improvements Key Takeaways focus • Expanding market presence Developing outside Europe Enhance HY ENHANCES future talent market HY V
Slide 47: Nuvera Fuel Cells
Nuvera Fuel Cells (i) HYSTER-YALE MATERIALS HANDLING
Slide 48: Hydrogen-Fueled Solutions are a Competitive Advantage
Hydrogen-Fueled Solutions are a Competitive Advantage Nuvera Fuel Cells makes HY a leading player in zero-emission power products Focused on fuel cell engines and systems for heavy-duty market segments where batteries are a sub-optimal solution 48
Slide 49: Market is Immense, Adoption Rate has Slowed
Market is Immense, Adoption Rate has Slowed Nuvera Fuel Cells focused on scalable products capable of broad market applicability • Market growth behind expectations mostly due to infrastructure gaps • Nuvera targeting early adopting customers and regions worldwide • Nuvera products’ modularity enabl
Slide 50: Hydrogen demand growth has outpaced current availability
Hydrogen demand growth has outpaced current availability Availability increasing but remains an industry bottleneck Announced hydrogen supply ($B) projects through January 2023 • Hydrogen / fuel cells being 117 aggressively supported by governments • Hydrogen infrastructure development accelerating
Slide 51: Nuvera Fuel Cells is focusing on Growth Opportunities in Target Markets
Nuvera Fuel Cells is focusing on Growth Opportunities in Target Markets Increasing number of applications of Nuvera’s fuel cell engines worldwide PORT STATIONARY ON-ROAD OFF-ROAD MARINE EQUIPMENT & PORTABLE • Refrigerated • Wheel Loader • Terminal Tractor • Water Taxi • Stationary Power Delivery Tru
Slide 52: Filling Order Pipeline in Target Markets with Volume Potential
Filling Order Pipeline in Target Markets with Volume Potential Nuvera Fuel Cells actively participating in all phases of customer adoption 2020 – 2 active customer engagements Ongoing product demonstrations 2023 – 100 active customer engagements in over 20 applications 52
Slide 53: Nuvera Fuel Cells is a Strategic Multiplier for HY
Nuvera Fuel Cells is a Strategic Multiplier for HY Step Change in emission-free powertrain solutions Key Takeaways • Clean power source for 20+ applications today • HY Lift Trucks successfully electrified 4 HD models with Nuvera® Fuel Cells • Expanding fuel cell engine portfolio & services • Increas
Slide 54: Appendix
Appendix &] HYSTER-YALE
Slide 55: Non-GAAP Disclosure
Non-GAAP Disclosure Working capital percentage of sales, Return on total capital employed and Adjusted EBITDA 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 c
Slide 56: Working Capital Percentage of Sales Calculation
Working Capital Percentage of Sales Calculation ($M) 2019 2020 2021 2022 2023 Accounts receivable 468.3 412.1 457.4 523.6 497.5 Inventory 559.9 509.4 781.0 799.5 815.7 Accounts payable (417.1) (428.1) (541.4) (607.4) (530.2) Net Working Capital(1) 611.1 493.4 697.0 715.7 783.0 Revenue 3,291.8 2,812.
Slide 57: Non-GAAP Reconciliation ROTCE
Non-GAAP Reconciliation ROTCE ($M) 2019(1) 2020(1) 2021(1) 2022(1) 2023(1) Average Stockholders' Equity 527.8 554.5 525.5 241.9 288.9 Average Debt 324.0 310.3 373.4 535.2 532.2 Average Cash (63.4) (83.4) (93.8) (66.8) (69.3) Average capital employed 788.4 781.4 805.1 710.3 751.8 Net Income (loss) 35
Slide 58: Non-GAAP Reconciliation Adjusted EBITDA
Non-GAAP Reconciliation Adjusted EBITDA ($ in millions) Year Ended December 31 Qtr. Qtr. Consolidated 2019 2020 2021 2022 2023 12/31/23 12/31/22 Reconciliation of Adjusted EBITDA Net income (loss) attributable to stockholders $35.8 $37.1 $(173.0) $(74.1) $125.9 $25.2 $7.6 Goodwill and other intangib
Slide 59: Non-GAAP Reconciliation Adjusted EBITDA continued
Non-GAAP Reconciliation Adjusted EBITDA continued ($ in millions) Year Ended December 31 Qtr. Bolzoni 2019 2020 2021 2022 2023 12/31/23 Reconciliation of Adjusted EBITDA Operating Profit (Loss) $4.7 $1.0 $(1.8) $6.2 $15.3 $2.6 Other income (expense) (0.2) - 0.5 0.3 (0.5) (0.6) Depreciation and amort
Slide 60: Supplemental Information
Supplemental Information &] HYSTER-YALE
Slide 61: Industry Lift Truck Market Size Data
Industry Lift Truck Market Size Data Lift Truck Market Size Data WITS Orders Basis (1) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Europe 265,896 278,024 312,455 327,173 380,557 445,583 411,107 222,883 299,387 368,286 351,441 North America 147,322 155,191 186,192 198,058 212,953 191,384 1
Slide 62: HY Product Launches
HY Product Launches Launched in 2023: Expanded scalable configurations for modular 2-3.5 ton Pneumatic ICE trucks for AM & EMEA regions. New mini 5 ton @ 600mm load center ICE counterbalanced Hyster® UT, Yale® UX lift trucks for AP region. New 8- to 10-ton ICE Hyster® UT, Yale® UX counterbalan
Slide 63: Disciplined Capital and R&D Expenditures
Disciplined Capital and R&D Expenditures C A P I TA L E X P E N D I T U R E S R&D EXPENDITURES ($M) ($M) Lift Truck IT Systems Nuvera Bolzoni 160 4% 100 Bolzoni 80 120 Nuvera 60 80 2% Lift Truck 40 40 R&D % of 20 Revenues 0 0 0% 2020 2021 2022 2023 Est. 2024 2019 2020 2021 2022 2023 Est. 2024 • 2024
Slide 64: HY Lift Truck Unit Shipments @ Quarter and Year-End 12/31/23
HY Lift Truck Unit Shipments @ Quarter and Year-End 12/31/23 HY Q4 ’23 Lift Truck Units Sold by Geography HY Q4 ’23 Lift Truck Units by Class HY Q4 ‘23 Lift Truck Unit Revenue by Class 3% Asia-Pacific / Japan China 8% Class 1* Class 1* 23% Class 5* 25% 31% Class 5* EMEA 51% 23% Class 2* 8% Class 2*