Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Investor Presentation (March 2013)
33 slides from Hyster-yale's investor presentation, Mar 26, 2013
Slide 1: Investor Presentation March 2013
Exhibit 99.1 INVESTOR PRESENTATION March 2013
Slide 2: Safe Harbor Statement
Safe Harbor Statement Thefollowinginformation includesforward-looking statements withinthemeaningofSection27Aof theSecurities Actof1933,as amended,andSection21Eof theSecurities Exchange Actof 1934,asamended.Anyandallstatements regardingtheCompany’s expected future financial position, results of oper
Slide 3: Hyster-Yale Snapshot
Hyster-Yale Snapshot Hyster-Yale Materials Handling, Inc. (NYSE:HY) Leading global designer, manufacturer and marketer of lift trucks and provider of aftermarket parts and support Headquartered in Cleveland, Ohio Over 5,300 employees in 13 countries FY 2012 Revenue $2.5 – billion FY2012NetIncome- $9
Slide 4: Economic Engine is Driven by Unit Volume
Economic Engine is Driven by Unit Volume Hyster-Yale’s model yields competitive advantages Worldwide Geographic Volume Distribution and Product Economies Strength to Drive Basic Business Areas Balance of Scale Market Share Design Component Commonality Supply Chain Manufacturing Quality Marketing Par
Slide 5: Industry Overview
Industry Overview Global Lift Truck Industry Size Global Lift Truck Industry Breakdown (units in thousands) Middle East & Africa Asia Pacific 6% Long-term CAGR (2002 2012) – = 5.3% 8% 1,200 Japan Europe 951 975 944 7% 872 32% 900 794 547 600 300 Americas 24% 0 2007 2008 2009 2010 2011 2012 China ___
Slide 6: Hyster-Yale Overview
Hyster-Yale Overview Key Highlights Global Footprint Leading global lift truck brands in terms of units sold – #3 globally in 2011 (2012 data not yet available) Large installed base that drives parts sales – Over 798,000 units worldwide – Sales of more than 76,900 units in 2012 – Sales of more than
Slide 7: Diverse Global Customer Base and Served Markets
Diverse Global Customer Base and Served Markets National Accounts Blue Chip Customer Base Focused on strategic customers with centralized purchasing and geographically dispersed operations across dealer territories Fleet Management Program provides customers with value-added services that include se
Slide 8: Key Highlights
Key Highlights Comprehensive, updated global product line Product development for 2013-2014 focuses on: – Completing introduction of full line of next generation electric rider products including some with “ICE-like” Products capabilities – Updating narrow aisle products with latest technology for i
Slide 9: Key Highlights (continued)
Key Highlights (continued) Reliability engineering and lean manufacturing focus have led to low warranty costs and increased customer Quality satisfaction Focus on continuous improvement Global independent, exclusive dealer network Increasing use of dual brand representation Dealer Network Strengthe
Slide 10: Operating Profit Margins have Substantially Improved
Operating Profit Margins have Substantially Improved Operating Profit $ and % of Sales ($ in millions) Prior Cycle Market Peak Mid-cycle Market $150 6.0% $125 $110.0 $111.7 $100 4.5% 4.0% 4.3% $75 $57.3 $50 2.0% 2.1% $25 $0 0.0% 2007 2011 2012 9
Slide 11: Gap to Target Economics
Gap to Target Economics Goal of achieving minimum operating margin of 7% at mid-cycle over the next 3 – 5 years 2012 Gap to Target Economics Target economics Gap Closure can be achieved by: Gap equals: (2.5% ) / $62m 1. Increased margin on ICE trucks Margin Variances: (1.3%) - Segmentation – Unit Ma
Slide 12: Five Key Strategic Initiatives to Drive Margins and Market Share
Five Key Strategic Initiatives to Drive Margins and Market Share Over the Next 3 - 5 Years Unit Margin Unit Share Master of the World of Low Cost Ownership Significantly Improve Warehouse Business Position Enhance Independent Distribution Succeed in Asian Markets Enhanced Understanding of Customer N
Slide 13: Masters of the World of Low Cost of Ownership
Masters of the World of Low Cost of Ownership Strategic Objectives Key Elements Sell More Trucks Understand Major Cost Drivers: Sell More Parts Direct (truck price, fuel, service, operator) Sell More Services Indirect (safety, litigation, pollution) And develop solutions that constantly By Deliverin
Slide 14: Significantly Improve Warehouse Business Position
Significantly Improve Warehouse Business Position Strategic Objectives Key Elements Focused approach to gain share against Direct support for dealer sales specialized market leaders Identify, qualify, assign and track performance of Improve dealer value proposition key customers Engage dealers to de
Slide 15: Enhanced Independent Distribution
Enhanced Independent Distribution Strategic Objectives Key Elements Recruit/develop strongest dealers in each territory Dual brand strategy Ensure opportunities for dealers to make strong Sales specialization returns on investment Dedicated dealer development team Combine dealer entrepreneurship and
Slide 16: Succeed in Asian Markets
Succeed in Asian Markets Strategic Objectives Key Elements Enhanced Dealer Organization and Structure Strategic Alliances for New Products/Components Develop Strategic Partners Build on Sumitomo Strength with Japanese Customers - Sales/engineering/manufacturing/sourcing Strong local partners in Chin
Slide 17: Enhanced Understanding of Customer Needs to Drive Tailored Solutions
Enhanced Understanding of Customer Needs to Drive Tailored Solutions Strategic Objectives Key Elements Best product fit for customer application Understand customer needs at a detailed level Related services to maximize customer Create differentiated product/service solutions and satisfaction more e
Slide 18: Positive Environment for Hyster-Yale to Gain Share and Margin Performance
Positive Environment for Hyster-Yale to Gain Share and Margin Performance Over Next 3- 5 Years Product gaps filled to position H-Y in most application segments and improve margins Favorable cost structure relative to Japanese-centric and German-centric competitors Second-tier competitors in the ICE
Slide 19: Share Gain Focus Varies by Market
Share Gain Focus Varies by Market Region Focus Improve warehouse business position by enhancing product and non-product services North America Continue to implement dual brand dealer network strategy Strengthen dealer networks by attracting new dealers and building upon our stronger dealers Europe a
Slide 20: Historical Revenue
Historical Revenue Revenue ($ in millions) $3,000 $2,720 $2,824 $2,400 $2,489 $2,541 $2,469 $2,057 $2,000 $1,780 $1,802 $1,588 $1,475 $1,000 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 19
Slide 21: Q4 2012 Highlights
Q 4 2012 Highlights Q4 2012 Results ($ in millions) 2012 Fourth Quarter 2012 Full Year $ % $ % Revenue pressure from lower year-over-year unit shipments and Revenue $652.0 100.0% $2,469.1 100.0% unfavorable foreign currency movements due to the weakening euro Operating and Brazilian real 29.0 4.4% 1
Slide 22: Strong Free Cash Generation and Conservative Capital Structure
Strong Free Cash Generation and Conservative Capital Structure Hyster-Yale has had strong cash flow, generating $309 million cumulative cash flow before financing from 2009 to 2012 – $151.3 million cash available as of 12/31/12 Hyster-Yale has a conservative capital structure – Gross debt leverage i
Slide 23: Why Invest in Hyster-Yale?
Why Invest in Hyster-Yale? 1) Leading position in growing industry benefiting from globalization and worldwide economic recovery and development 2) Premierbrands,comprehensive globalproductlineandexclusive, globalindependent distribution network 3) Strong economic engine driven by volume economies o
Slide 24: Appendix
Appendix MATERIALS HANDLING |_| HYSTER-YALE
Slide 25: Non-GAAP Disclosure
Non-GAAP Disclosure EBITDAand returnon totalcapitalemployedarenotmeasurements underU.S.GAAP,shouldnotbe considered in isolation or as a substitute for GAAP measures, and are not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines each as the following: EBITD
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) Year Ended December 31 2009 2010 2011 2012 Reconciliation of EBITDA Net income (loss) attributable to stockholders ($43.1) $32.4 $82.6 $98.0 Noncontrolling interest income (loss) (0.1) (0.1) – 0.1 Income taxes provision (benefit) (3.6) 1.8 18.9 7.0 Interest ex
Slide 27: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) ($ in millions) Reconciliation of Return on Total Capital Employed (ROTCE) 2012 2012 Average Equity (12/31/12, 9/30/12, 6/30/12, 3/31/12 and 12/31/11) $333.3 2012 Average Debt (12/31/12, 9/30/12, 6/30/12, 3/31/12 and 12/31/11) 175.9 2012 Average Cash (12/31/12, 9/
Slide 28: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation ($ in millions) Year Ended December 31 2009 2010 2011 2012 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operations $115.9 $47.5 $54.6 $128.7 Net cash provided by (used for) investing activities 5.8 (8.5) (15.9) (19.5) Cash Flow b
Slide 29: Supplemental Perspective
Supplemental Perspective | _ HYSTER-YALE TERIALS HANDLING
Slide 30: Mission Statement
Mission Statement Be a leading globally integrated designer, manufacturer and marketer of a complete range of high quality, application-tailored lift trucks, offering the lowest cost of ownership, outstanding parts and service support and the best overall value 29
Slide 31: Experienced Management Team
Experienced Management Team Hyster-Yale’s Executive Leadership Alfred M. Rankin Jr. Chairman, President and CEO of NACCO Industries since 1994 Chairman, President and Former Vice Chairman, Chief Operating Officer and Director of Eaton Chief Executive Officer Corporation Michael Brogan Former Executi
Slide 32: Comprehensive Updated Global Product Line
Comprehensive Updated Global Product Line Class Capacity Range Description / Illustrative Application Electric counterbalanced trucks used in warehousing and manufacturing operations where noise or fuel emissions are undesirable Class I 1 ton – 5.5 tons A distribution center customer uses a Class I
Slide 33: Key Investment Highlights
Key Investment Highlights Leading Market Comprehensive Share in Materials Global Product Line Handling High-Impact Large Installed Strategic Initiatives Base Worldwide Modest Leverage Established & Strong Brand Strength Cash Flow Global Experienced Independent Dealer Management Team Network Highly F
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