Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Investor Presentation (February 2016)
46 slides from Hyster-yale's investor presentation, Feb 24, 2016
Slide 1: Investor Presentation February 24, 2016
Exhibit 99 Investor Presentation February 24, 2016 Solutionsto ENHANCE Performance
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: Hyster-Yale Snapshot
Hyster-Yale Snapshot Hyster-Yale Materials Handling, Inc. (NYSE:HY) designs, engineers, manufactures, sells and services a comprehensive line of lift trucks and aftermarket parts. Separate lift truck and fuel cell power solutions segments. Headquartered in Cleveland, Ohio Approximately 5,500 employe
Slide 4: Bolzoni Transaction – Acquisition Plan
BolzoniTransaction –Acquisition Plan PENTA HOLDING • On February 14, 2016, signed agreement to acquire Penta S.p.A., a majority stakeholder (50.4%) of Bolzoni S.p.A., an Italian-listed public company and leading worldwide producer of attachments, forks and lift tables under the Bolzoni Auramo and Me
Slide 5: Bolzoni Transaction Rationale
Bolzoni TransactionRationale – PENTA HOLDING External Expand global reach Enhance solutions capabilities Closer to our customers Internal Insource components Leverage excess capacity Accretive to earnings Solutionsto ENHANCE Performance 5
Slide 6: Our Businesses
Our Businesses Our Core Lift Truck Business Our Hydrogen Power Business Organic growth through market share gain Rapid growth in emissions free customer applications Solutionsto ENHANCE Performance 6
Slide 7: Hyster-Yale Is a True Full-Line Lift Truck Supplier
Hyster-Yale Is a True Full-Line Lift Truck Supplier… CLASS 1 CLASS 2 CLASS 3 CLASS 4 CLASS 5 Electric Internal Internal Electric Narrow Electric Hand Counterbalanced Combustion Engine Combustion Engine Aisle Trucks Trucks Rider Trucks (cushion tire) (pneumatic tire) 1.0T to 5.5T 1.5T to 6.0T 1.5T to
Slide 8: …with Full Range of Power Options
…with Full Range of Power Options CLASS 1 CLASS 2 CLASS 3 CLASS 4 CLASS 5 Electric Electric Internal Electric Internal Combustion Counterbalanced Narrow Combustion Engine Hand Engine Rider Trucks Aisle (cushion tire) Trucks (pneumatic tire) Trucks Photo Photo Photo Lead Acid Lithium Ion Fuel Cell LP
Slide 9: Lift Truck Industry Overview
Lift Truck Industry Overview Global Lift Truck Industry Size Global Lift Truck Industry Breakdown (Units) (units in thousands) Middle East & Long-term CAGR (2004 2015) – = 4.1% Africa 5% Asia-Pacific 8% 1,200 Japan 7% 900 Europe 33% 600 Americas 25% 300 951 872 547 794 975 944 1,010 1,094 1,100 Chin
Slide 10: Lift Truck Business Target Economics Goal and Gap to Target
Lift Truck Business Target Economics Goal and Gap to Target LTM 12/31/15 Gap to Target Economics 7% Goal Target Actual Lift Truck Operating Profit Margin 5.0% Achieve minimum Economics gap operating profit Margin Variances (0.6%) closure can be margin of 7% at the Unit margin (0.4%) achieved Parts/o
Slide 11: Leverage Gained from Moving Volume to Full Manufacturing Capacity
Leverage Gained from Moving Volume to Full Manufacturing Capacity Capacity At Full Capacity: 115,000 units / year Expected over next 3 4– years 24% 76% 28,000 Used Unused units of additional volume $30 -$35 million fixed cost absorption by moving from current capacity utilization to full utilization
Slide 12: Over the Remainder of this Market Cycle, Target Volumes Driven by…
Over the Remainder of this Market Cycle, Target Volumes Driven by… Growth of 10-15% by 2019-2020** Growth of 5-10% by 2019-2020** EMEA Industry Americas Industry 500 300 400 250 200 300 150 200 100 Actual Prior Peak Actual Prior Peak 100 50 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013
Slide 13: Hyster-Yale’s Economic Engine & Core Strategic Initiatives
Hyster-Yale’s Economic Engine & Core Strategic Initiatives Hyster-Yale’s economic engine is driven by increasing unit volume and economies of scale. Core strategic initiatives were designed to drive the economic engine by increasing share... Worldwide Geographic Volume Distribution Strength to Drive
Slide 14: Core Strategic Initiatives – Stages of Momentum
Core Strategic Initiatives Stages – of Momentum Our core strategic initiatives are in various stages of maturity. Share gain is expected to take place as they gain Achieved momentum… Early Stage Mid-Stage Breakthrough Understand Customer Needs Low Cost of Ownership Enhance Independent Distribution I
Slide 15: Core Lift Truck Strategic Initiatives Update
Core Lift Truck Strategic Initiatives Update Initiative Strategic Objective Implementation Highlights Key Elements Understand Provide the right product and Increasing penetration of the Metals , Trucking Segmentation of products and solution to meet the specific and Paper segments industries Custome
Slide 16: Core Lift Truck Strategic Initiatives Update
Core Lift Truck Strategic Initiatives Update Initiative Strategic Objective Implementation Highlights Key Elements Enhance • Develop the • Completed a major restructuring of network in • Develop all dealers strongest North America that included a competitor dealer • Appoint / convert successful deal
Slide 17: Core Lift Truck Strategic Initiatives Update
Core Lift Truck Strategic Initiatives Update Initiative Strategic Objective Implementation Highlights Key Elements • Expand market • 5 new dealers appointed in 2015 • Organic growth through Succeed in Asia penetration throughout • Direct sales support on large accounts development of dealer network
Slide 18: Core Lift Truck Strategic Initiatives Update
Core Lift Truck Strategic Initiatives Update Initiative Strategic Objective Implementation Highlights Key Elements Strengthen Sales • Strengthen and align sales • Recruited experienced individuals with • Greater accountability for and Marketing and marketing organization deep knowledge of the lift t
Slide 19: Nuvera Hydrogen Power Business
NuveraHydrogen Power Business Initiative Strategic Objective Implementation Highlights Key Elements Commercialize • Commercialize Nuvera’s • Secured first total power solution • Enables active participation in Nuvera’s Fuel technology through agreement with a customer in Q4 the growing hydrogen and
Slide 20: Hydrogen Power for Lift Trucks – Advantages and Opportunities
Hydrogen Power for Lift Trucks Hyster-Yale acquired Nuvera in December 2014 and intends to use the technology to offer its customers a unique and value-creating packaged total power solution. Advantages and Opportunities Limited Maintenance Rapid Refueling Emissions Free Emerging Market Scalable Sol
Slide 21: The Hydrogen Power Market
The Hydrogen Power Market Fuel Cell Power penetration projected to triple by 2025 Short Term Target N. America Lift Truck Market Estimated up to 140,000+ 25-50% electric trucks sold can benefit from per year Fuel Cell solutions Productivity Increase Floor Space Time saved refueling and Utilization c
Slide 22: The Nuvera Total Power Solution
The NuveraTotal Power Solution PowerTap ® Hydrogen Generation PowerEdge ®Fuel Cell Low fixed costs ideal for Engine small to medium size fleets Hydrogen Refueling Scalable Onsite generation Orion® Fuel Cell Engine Current: ideally suited to Total Power lift truck customer Next Generation: Leap in So
Slide 23: Capturing More Lifecycle Value
Capturing More Lifecycle Value Lead Acid Battery* PowerEdge ®Solution* Energy Utility Company Utility Company Energy Fuel (PowerTap®) Nuvera/Dealer HY/Dealer Maint Maint HY/Dealer Battery Supplier Batteries & Charger PowerEdge® Nuvera Batteries $18-20k lifetime Eligible for Hyster-Yale Truck spend (
Slide 24: Our Hydrogen Power Business – The Nuvera Story
Our Hydrogen Power Business The Nuvera Story Purchased for a small Only one main investment amount competitor in lift truck Investing pre-tax expense space dollars to break-even Developing turnkey Solutions across Hydrogen option for lift truck Value Chain customers Strong IP / Patent Provides stron
Slide 25: The Nuvera Plan
The Nuvera Plan Phase 1 Phase 2 Phase 3 2015 -2016 2016 –2017 2017 –2018 Develop PowerEdge ® units for full Hyster-Yale dealer engagement 700 PowerEdge ® and 10 PowerTap ® range of electric lift trucks units per quarter at target margins “Try-to-buy” PowerEdge ® program achieves break-even operating
Slide 26: 2015 Fourth Quarter Highlights
2015 Fourth Quarter Highlights ($ in millions) 2015 Fourth Quarter LTM 12/31/15 Consolidated Revenue $645.0 100.0% $2,578.1 100.0% Lift Truck Operating Profit 32.3 5.0% 128.1 5.0% Nuvera Operating Loss (6.1) (0.9)% (24.6) (1.0)% Consolidated Operating Profit 26.2 4.1% 103.5 4.0% Consolidated Net Inc
Slide 27: Valuation Approach By Business
Valuation Approach By Business Lift Truck Business Fuel Cell Business Mature Cyclical Industry Developing / Technology Industry Distinct Technology / Patents in Fuel Cell Market Leading Products and Position and Hydrogen Generation Operating Cash Invested in New Product Strong Operating Cash Generat
Slide 28: Our Competitive Advantages
Our Competitive Advantages Global Customer Relationships Long relationships Able to meet customers needs globally Able to meet most needs Global economies of scale National Account programs Full Product Line Dealer Relationships Young/ fresh product line Independent distribution model Broad array of
Slide 29: A Solid Investment Option
A Solid Investment Option Leading Products & Customer Focused & Market Position Solutions Oriented Cash Generation & Strategies to Gain Commitment to HYSTER-YALE Share in Growth Shareholder Return Segments & Markets Strong Balance Investment & Growth in Sheet Game Changing Technologies 29 Solutionst
Slide 30: Hyster-Yale Use of Cash Priorities
Hyster-Yale Use of Cash Priorities Investments in Core Lift Truck Business Strategic initiatives to accelerate growth or enhance margins Investments in Share Gain Programs Investments to commercialize Nuvera’s technology Investments in Hydrogen Power Business Acquisitions of technologies and other f
Slide 31: Appendix
Appendix Solutionsto ENHANCE Performance
Slide 32: Non-GAAP Disclosure
Non-GAAP Disclosure AdjustedLift TruckBusinessOperatingProfit, EBITDAand return on total capital employedare not measurementsunder U.S.GAAP,should not be consideredin isolation or as a substitute for GAAPmeasures,andare not necessarilycomparablewith similarlytitled measuresof other companies.Hyster-
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) Year Ended December 31 2011 2012 2013 2014 2015 Reconciliation of EBITDA Net income attributable to stockholders $82.6 $98.0 $110.0 $109.8 $74.7 Noncontrolling interest income (loss) – 0.1 0.2 0.4 0.4 Income taxes provision 18.9 7.0 17.2 39.9 29.4 Interest exp
Slide 34: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) ($ in millions) Reconciliation of Return on Total Capital Employed (ROTCE) 2015 2015 Average Stockholders’ Equity (12/31/15, 9/30/15, 6/30/15, 3/31/15, and 12/31/14) $449.7 2015 Average Debt (12/31/15, 9/30/15, 6/30/15, 3/31/15, and 12/31/14) 44.1 2015 Average Cas
Slide 35: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation Year Ended December 31 ($ in millions) 2011 2012 2013 2014 2015 Reconciliation of Cash Flow before Financing Net cash provided by operations $54.6 $128.7 $152.9 $100.0 $89.4 Net cash used for investing activities (15.9) (19.5) (26.1) (44.4) (31.3) Cash Flow bef
Slide 36: Supplemental Information
Supplemental Information Solutionsto ENHANCE Performance
Slide 37: The History of Hyster-Yale and its brands
The History of Hyster-Yale and its brands 1875 Yale Lock Mfg. broadens its scope into materials handling 1929 Hyster founded in Portland, Oregon as the Willamette Ersted Company 1944 Company name officially changed to Hyster Company 1963 Yale forklift truck business merges with Eaton Mfg. Industrial
Slide 38: Hyster-Yale Global Footprint
Hyster-Yale Global Footprint Solutionsto ENHANCE Performance 38
Slide 39: Historical Consolidated Revenue
Historical Consolidated Revenue ($ in millions) $3,000 $2,824 $2,767 $2,720 $2,666 $2,541 $2,578 $2,400 $2,489 $2,469 $2,057 $2,000 $1,802 $1,475 $1,000 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Solutionsto ENHANCE Performance 39
Slide 40: Lift Truck Business Operating Profit Trends and % of Sales
Lift Truck Business Operating Profit Trends and % of Sales ($ in millions) 7% TARGET $150.0 7.0% Prior Cycle Market Peak Mid-Cycle Market $151.0 2.0% Gap (1) Closure $125.0 6.0% 5.5% 5.0% 5.0% $100.0 4.5% 4.8% 5.0% $134.4 $75.0 $133.3 (2) $128.1 4.0% $111.7 $50.0 $57.5 3.0% 2.1% $25.0 2.0% 2007 2012
Slide 41: Our Business Has Been Transformed
Our Business Has Been Transformed Product Range Manufacturing Comprehensive, updated product line Globally integrated, lean operations with economies of scale Average product age since last upgrade – less than 4 years Assembled in market of sale Designed to meet customer needs Continuous efficiency
Slide 42: Our Business Has Been Transformed
Our Business Has Been Transformed Supply Chain Quality Aftermarket Centralized supply chain Customer driven programs High first time fill % management North America’s warranty Comprehensive all makes Highly flexible low cost supply rates reduced significantly parts program chain over the last five y
Slide 43: Lift Truck Overview and Sources of Revenue
Lift Truck Overview and Sources of Revenue Key Highlights • Leading global lift truck manufacturer in terms of units sold • Diverse customer and application base – #3 globally in 2014 • Global independent dealer network – Large installed base that drives parts sales • Comprehensive, updated global p
Slide 44: Distribution Channel Strength and Diverse Customer Base
Distribution Channel Strength and Diverse Customer Base National Accounts Profile Distribution Mix Blue Chip Customer Base • Focused on strategic customers with centralized National Accounts purchasing and geographically dispersed 16% operations across dealer territories • Fleet Management Program p
Slide 45: Positive Environment to Gain Share and Margin Performance Over Next Two Years
Positive Environment to Gain Share and Margin Performance Over Next Two Years Product gaps filled to position Hyster-Yale in most application segments and improve margins Second-tier competitors in the ICE segment more vulnerable due to their weak economies of scale position Key warehouse segment co
Slide 46: Our Long-Term Philosophy
Our Long-Term Philosophy Long-term Long-term Shareholder Senior Increase growth shareholders protection management shareholder value incentivized as Return on Capital long-term Employed and Market shareholders Share Increase focus Solutionsto ENHANCE Performance 46
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