Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Q3 2020 Earnings Presentation
42 slides from Hyster-yale's earnings presentation, Nov 10, 2020
Slide 1: Q3 2020 Investor Presentation
Mass Customization Electrification Automation Globalization Digitization Q3 2020 INVESTOR PRESENTATION Exhibit 99
Slide 2: Safe Harbor Statement & Disclosure
Safe Harbor Statement & Disclosure Transforming the Future 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 Americ
Slide 3: Our Businesses
Our Businesses Our Attachments Business Our Fuel Cell Business Transforming the Future Our Core Lift Truck Business
Slide 4: Hyster-Yale at a Glance
Hyster-Yale Materials Handling, Inc. (NYSE:HY) is a leading globally integrated, full-line lift truck manufacturer offering a broad array of solutions aimed at meeting the specific materials handling needs of its customers. Hyster-Yale at a Glance Lift Truck Bolzoni Nuvera Revenue $2,787.2 $302.4 $3
Slide 5: Full Lift Truck Product Line
Internal Combustion Engine Reach Trucks Counterbalance 4-wheel Diesel Forklift Port Machinery ICE Warehouse Equipment Electric Internal Combustion Engine Lithium-Ion Reach Stackers Big Trucks Very Narrow Aisle Trucks Full Lift Truck Product Line - Over 400 Different Truck Models Available Electric C
Slide 6: Broad Range of Power Options, Attachments and Solutions
…with a Broad Range of Power Options, Attachments and Solutions Push Pulls Lifting Tables Electric Counterbalanced Rider Trucks Electric Narrow Aisle Trucks Electric Hand Trucks Internal Combustion Engine (cushion tire) Internal Combustion Engine (pneumatic tire) CLASS 1, 2 & 3 Fuel Cell Engine LPG
Slide 7: Global Lift Truck Industry Size
Long-term CAGR (2004 – 2019) = 5.2% _____________________ Source: ITA. Represents quarterly order intake. (units in thousands) Global Lift Truck Industry Size _____________________ Trend line represents 5.2% long-term CAGR Average Industry Size. Source: WITS. Represents annual order intake. North Am
Slide 8: Lift Truck Unit Class Shipments
Lift Truck Unit Class Shipments _____________________ Source: Company: LTM 9/30/20 Unit Revenues Industry Units by Geography _____________________ Source: Company: LTM 9/30/20 Units Shipped Note: Units sold direct by SN JV are not included _____________________ Source: WITS. LTM 9/30/20 Orders Repor
Slide 9: Q3 2020 results affected by COVID-19
Q3 2020 results were adversely affected by the continuing COVID-19 pandemic: Significant declines in economic activity from shutdowns in Q2 2020 continued to effect global demand for HY’s products in Q3 2020 Shipments decreased vs. Q3 2019, but increased over Q2 2020, which was significantly impacte
Slide 10: Operational and Cost Containment Actions
Operational Actions: Procedures implemented to limit employees’ exposure to COVID-19 Carefully managing shipments, backlog and lead times to match market conditions while also maintaining adequate production levels and minimal open production slots Focused on adapting production levels quickly to ma
Slide 11: Path to Execution of Strategic Initiatives
Path to Execution of Strategic Initiatives In total, Hyster-Yale projects maturing over the next 1 to 4 years are transformative and have the objective of driving revenue and profitability to target New Utility Products New Standard Products New Premium Products HY Maximal Integration BBR Range Expa
Slide 12: Key Capital Expenditures
Key Capital Expenditures Capital expenditures directed to support key HY lift truck product initiatives along with development of Bolzoni and Nuvera products and facilities. The Company continues to evaluate the amount and timing of 2020 capital expenditures in relation to the current economic outlo
Slide 13: Focus on Maintaining Liquidity
Focus on Maintaining Liquidity during Economic Downturn brought on by COVID-19 Investments in Fuel Cell Business Investments in Lift Truck Business Liquidity: Hyster-Yale Priorities for Use of Cash Expense and capital investments in strategic programs to accelerate growth and enhance margins Investm
Slide 14: Results for Q3 2020
($ in millions) Results for Q3 2020 Consolidated vs. Q3 2019 Q3 2020 Results Revenue decrease due to lower units and parts volumes in all Lift Truck geographic segments & at Bolzoni as a result of lower Q2 2020 bookings and the decline in global economic activity subsequent to the pandemic-related s
Slide 15: Valuation Approach Should Vary By Business
Valuation Approach Should Vary By Business Lift Truck and Attachment Businesses Fuel Cell Business Board Oversight as Three Separate Businesses Incentives Tied to Individual Businesses Strong Operating Cash Generation Market Leading Products and Position Mature Cyclical Industry Value using Traditio
Slide 16: Financial Appendix
ENTER SESSION TITLE HERE… Presenter Name FINANCIAL APPENDIX
Slide 17: Non-GAAP Disclosure
17 Non-GAAP Disclosure Transforming the Future EBITDA and return on total capital employed 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-Ya
Slide 18: Non-GAAP Reconciliation EBITDA
Non-GAAP Reconciliation EBITDA _____________________ Note: EBITDA in this investor presentation is provided solely as a supplemental disclosure with respect to operating results. EBITDA does not represent net income (loss), as defined by U.S. GAAP and should not be considered as a substitute for net
Slide 19: Non-GAAP Reconciliation EBITDA (continued)
Non-GAAP Reconciliation EBITDA (continued) _____________________ Note: EBITDA in this investor presentation is provided solely as a supplemental disclosure with respect to operating results. EBITDA does not represent net income (loss), as defined by U.S. GAAP and should not be considered as a substi
Slide 20: Non-GAAP Reconciliation ROTCE
Non-GAAP Reconciliation ROTCE _____________________ Note: Return on capital employed is provided solely as a supplemental disclosure with respect to income generation because management believes it provides useful information with respect to earnings in a form that is comparable to the Company’s cos
Slide 21: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation Transforming the Future CONSOLIDATED ($ in millions) Year Ended December 31 Qtr. LTM 2015 2016 2017 2018 2019 9/30/2020 9/30/2020 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operating activities $89.4 ($48.9) $164.7 $67.6 $76.7
Slide 22: Supplemental Information
ENTER SESSION TITLE HERE… Presenter Name Supplemental Information
Slide 23: Hyster-Yale's Global Footprint
Hyster-Yale’s Global Footprint Ramos Arizpé, Mexico Fabrication Manufacture Sulligent, Alabama Attachment and Component Manufacture Berea, Kentucky Lift Truck Manufacture Greenville, North Carolina Division Headquarters; Lift Truck Manufacture; Warehouse Development Center Cleveland, Ohio Corporate
Slide 24: Overview and Sources of Revenue for FY 2019
Overview and Sources of Revenue for FY 2019 2019 Worldwide Sales by Product _____________________ Company estimate. Includes Big Truck sales that represent 11.4% of total sales. Represents Hyster-Yale North American Lift Truck unit shipments by industry. A leading global lift truck manufacturer 2019
Slide 25: Global Lift Truck Market Rates of Change
Japan Western Europe Eastern Europe Brazil North America Middle East & Africa Latin America (excluding Brazil) Asia (excluding China & Japan) China ( 3 & 12 months rate of change trend) Global Lift Truck Market Rates of Change _____________________ Source: WITS. Bookings Reports. Transforming the Fu
Slide 26: Modular Solutions to Optimize Customer Productivity
LOW COST HIGH FUNCTION Operator Compartment Overhead Guard Basic Cab Premium Cab Powertrain Basic Electronic Advanced Steering Hydraulic Electric Electrical System Basic Full Featured + + + = + + = + Right Modules Right Cost Right Function Transforming the Future One Truck Multiple Configurations Mo
Slide 27: Modular Solutions to Optimize Customer Productivity (continued)
Transforming the Future Modular Solutions to Optimize Customer Productivity (continued) Primary product focus is on modular and scalable product families covering both internal combustion engine (ICE) and electric trucks Products expected to provide customers with enhanced flexibility for meeting ap
Slide 28: Direct Customer Engagement: Connecting Value to Requirements
Direct Customer Engagement: Connecting Value to Requirements Evolving Business Needs HY Transformative Solutions HY Sales Transformation Enhanced Industry Sales Strategy Deploy Value Selling Process Increase Direct Engagement Focus on Customer Experience Commercialize Emerging Telemetry, IoT & Digit
Slide 29: Direct Customer Engagement (continued)
Direct Customer Engagement: Connecting Value to Requirements (continued) Transforming the Future COVID-19 Implications for Direct Customer Engagement: Direct Customer Engagement = both Physically and Digitally COVID-19 has accelerated the shift toward digitizing the buying process Customers want an
Slide 30: Delivering Increased Value Through Direct Engagement
Delivering Increased Value Through Direct Engagement Specialization in industry Direct selling Augmenting dealer selling Supported dealer selling Increase Direct Engagement Transforming the Future
Slide 31: Product Line Plans - Warehouse
Product Line Plans - Warehouse New End Rider New Range of Class 3 Trucks New Range of Reach Trucks Transforming the Future E-commerce Industry Products
Slide 32: 2020 Product Launches
2020 Product Launches Transforming the Future Hyster-Yale Products Expected to be Launched in Short-term: Launched in first nine months of 2020: Hyster® UT and Yale® UX lift trucks for all countries New 2.5-3 ton integrated lithium-ion Electric Rider for Americas and EMEA markets New Reach Truck for
Slide 33: Life Cycle Costs
Life Cycle Costs *Typical truck cost/hour for 5,000lb North American applications Operator 69% Fuel 11% Finance 9% Service & repair 11% Typical Truck Cost/Hour* Factors Impacting Low Cost of Ownership Fleet optimization Price management Cost control Residuals Cost/hour Fleet management Extended warr
Slide 34: Automation Journey
Automation Journey Horizontal (Balyo) Vertical (JBT) Partner Solutions Modular, Scalable Internally Developed Automation … Transforming the Future Targeted Introduction of Initial Applications in 2021
Slide 35: Distribution Engagement
Distribution Engagement Enhancing performance Dealer Excellence programs Dealer alignment Term-based contracts Hyster-Yale providing additional support ~950 global dealer locations 2,800+ application consultants 11,500+ service technicians Independent n Exclusive n Entrepreneurial n Profitable n Com
Slide 36: Bolzoni Core Strategies for Growth
Bolzoni Core Strategies for Growth Transforming the Future One Company, 3 Brands Industry Focus AGV Market Presence Expansion North America Expansion Enhance OEM Business JAPIC Expansion
Slide 37: Bolzoni – Focused Investments During COVID-19
Transforming the Future Bolzoni – Focused Investments During COVID -19 Expansion of JAPIC Footprint Increased focus on region Expansion of fork production in China Silver-Line products One Company 3 Brands Bolzoni® Bolzoni Group Auramo® Meyer® Local production Improved internal sales support with te
Slide 38: Bolzoni: Enhance Strong OEM Relationships
Bolzoni: Enhance Strong OEM Relationships Transforming the Future OEM TOP CUSTOMERS(1)(2) OEM SALES BY REGION(1)(2) OEM SALES BY PRODUCT LINE(1)(2) STRONG AND LONG-TERM RELATIONSHIPS RESULTING IN BUSINESS GROWTH ACROSS ALL REGIONS For the 12 months ended 12/31/19 Excludes cylinder sales to HY
Slide 39: Nuvera is a Transformational Opportunity
Nuvera is a Transformational Opportunity Transforming the Future Leading, Patented Technology Demand Tapered in Short-term Successful Early Stage Adoption Automated Fuel Cell Stack Assembly Lines for Series Production Expected Transformational Impact on Hyster-Yale Future Profitability Technology Hi
Slide 40: Strong Demand Growth for Fuel Cells
Strong Demand Growth for Fuel Cells Global mobility market is large and expected to grow fast Three main regions for growth Covid-19 impact has caused some delay Source: FCEV Market Report 2025, GMI Inc. 2019. Transforming the Future
Slide 41: Market Trends / Nuvera Activity
Market Trends / Nuvera Activity Europe Market Trend: City & Country bans on ICE Nuvera has started cooperation in Fuel Cell European groups Increasing focus on Bus (12 meter) Current activity focused on systems for industrial machines North America Market Trend: Currently dominated by Materials Hand
Slide 42: Long-Term Focused, not Short-Term Oriented
Long-Term Focused, not Short-Term Oriented Transforming the Future Partners Shareholders Employees Dealers Suppliers Transforming the Future Customers
Hyster-Yale Materials Handling — Q3 2020 Earnings Presentation on 6ix