Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Q3 2023 Earnings Presentation
58 slides from Hyster-yale's earnings presentation, November 2023
Slide 1: Q3 2023 Quarterly Investor Presentation
Q3 2023 QUARTERLY INVESTOR PRESENTATION ATTACHMENTS LIFT TRUCKS FUEL CELLS Transforming the way the world moves materials from Port to Home
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: Quarterly Overview
QUARTERLY OVERVIEW i) HYSTER-YALE
Slide 4: 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 5: Key Takeaways – Q3 2023
Key Takeaways – Q3 2023 Growing Results Dissipating Healthy Backlog Improving Strong Outlook $1.0B headwinds Increasing backlog Financial Leverage Inflation moderated: Q4 ’23 continuing revenue value: Positive 61% debt to improvement 19% above Q3 ’22 Avg. sales price/ price-to-cost ratio total capit
Slide 6: Hyster-Yale at a Glance
Hyster-Yale at a Glance Hyster-Yale Materials Handling, Inc. (NYSE:HY) is a leading Key Metrics In millions (except employee data) globally integrated, full-line lift Lift Truck Bolzoni Nuvera truck manufacturer offering a Q3 2023: broad array of solutions aimed at Revenue $952.0 $92.8 $1.5 meeting
Slide 7: Global Lift Truck Market remains healthy, above pre-pandemic levels
Global Lift Truck Market remains healthy, above pre-pandemic levels Global Lift Truck Industry Size* Lift Truck Industry Q2* 23 vs. prior ’23 & ’22 Quarters (units in thousands) Global Industry Americas Industry 2,400 2,100 10-Year CAGR (2013 – 2022) = 8.7% (units in thousands) (units in thousands)
Slide 8: Lift Truck Unit Shipments by Class (6/30/23)
Lift Truck Unit Shipments by Class (6/30/23) Industry Units by Geography HY Units Sold by Geography Asia Pacific / Japan Asia-Pacific/ Japan HY lift truck unit sales 11% China 4% 7% mix more heavily EMEA 30% EMEA 28% China 38% Americas Americas 61% weighted toward the 21% Americas __________________
Slide 9: Significantly Improved Q3 2023 Financial Results versus Prior Year
Significantly Improved Q3 2023 Financial Results versus Prior Year Operating Net Shipments Revenues Profit Income EBITDA(1) 25,700 $1.0B $58.6M $35.8M $72.8M 1,200 19% $83.5M $73.1M $87.0M units Substantial financial progress made since Q3 2022; last twelve months net income of $108.3 million Q3
Slide 10: Results for Q3 2023 Consolidated vs. Q3 2022
Results for Q3 2023 Consolidated vs. Q3 2022 CONSOLIDATED HY HY Lift Truck ($ in millions) Q3 2023 Q3 2022 Variance Revenue over $1 billion, growing 19% year-over-year led Shipments 25,700 24,500 1,200 by volume and price increases, as well as sales mix shift Revenues $1,001.2 $840.1 $161.1 Bett
Slide 11: Strong Q4 2023 and FY 2024 Outlook
Strong Q4 2023 and FY 2024 Outlook Backlog levels expected to drive future performance and support margin expansion Lift Truck Bolzoni Nuvera Consolidated HY Q4 ’23 Q4 ’23 operating profit Expected operating profitability should improve Expected higher sales in expected to: profit increases Q4 ‘23 Q
Slide 12: Disciplined Approach to Capital Allocation and Cash Usage
Disciplined Approach to Capital Allocation and Cash Usage Improving Financial Leverage • Unused Borrowing Capacity of ~$254m INVESTMENTS and ~$78m in Cash @ 9/30/23 • Managing capital expenditure timing for strategic initiatives; ongoing cost control Lift Truck Nuvera focus Expense and capital Inves
Slide 13: Core Strategies Designed to Drive Economic Engine and Increase Market Share
Core Strategies Designed to Drive Economic Engine and Increase Market Share Hyster-Yale has five core strategies to drive growth, with each supported by strategic projects Worldwide Geographic Volume Distribution and Product Economies Strength to Drive Balance of Scale Market Share Lift Truck Strate
Slide 14: Transformational Initiatives
Transformational Initiatives Create 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 Transformati
Slide 15: Strategic Perspective
STRATEGIC PERSPECTIVE i) HYSTER-YALE
Slide 16: Overview
Overview i) HYSTER-YALE
Slide 17: Overview and Sources of Revenue
Overview and Sources of Revenue A leading global lift truck manufacturer HY sales of ~ 105,700 lift truck Additional ~ 8,000 lift Large installed population units in LTM 9/30/23 truck units sold in that drives parts sales ~80,500 units sold – produced in HY plants ~ 990,000 lift truck units worldwid
Slide 18: Full Lift Truck Product Line
Full Lift Truck Product Line - Over 650 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.
Slide 19: 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 20: Hyster-Yale has a Global Footprint
Hyster-Yale has a Global Footprint Järvenpää, Finland Frimley, UK Attachment Division Headquarters; Hebei, China Wuxi, China Manufacture Engineering Concept Centre Fork Manufacture Attachment Manufacture Fairview, Oregon Counterbalanced Development Cleveland, Ohio Craigavon, N. Ireland Obu, Japan (J
Slide 21: Declining Global Lift Truck Market from 2021 Peak in all Major Geographic Regions
Declining Global Lift Truck Market from 2021 Peak in all Major Geographic Regions Global Lift Truck Market Rates of Change through 6/30/23 ( 3 & 12-month rates of change trend) North Brazil Europe America Asia/ China Pacific (excluding China) _____________________ Source: WITS. Bookings Reports thro
Slide 22: 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 23: HY Lift Truck Unit Shipments as of 9/30/23 and LTM 9/30/23
HY Lift Truck Unit Shipments as of 9/30/23 and LTM 9/30/23 HY Quarterly Lift Truck Units Sold by Geography HY Quarterly Lift Truck Units by Class HY Quarterly Lift Truck Unit Revenue by Class Asia-Pacific/ Japan China 2% 8% Class 1 Electric Class 1 Electric 19% 23% EMEA Class 5 ICE 23% 34% Class 2 E
Slide 24: Hyster-Yale is Committed to Achieving Its Financial Targets
Hyster-Yale is Committed to Achieving Its Financial Targets Each of the three businesses has long-term financial objectives HY’s Strategic Initiatives and Related Projects Expected to Drive Results to Targets Lift Truck Bolzoni NUVERA Operating Profit Operating Profit • Focus on increasing 7% 7% sal
Slide 25: Lift Truck Long-Term Operating Profit Margin Target
Lift Truck Long-Term Operating Profit Margin Target As material cost inflation moderates and supply chain conditions improve, Gap to Target Economics are expected to narrow Operating Profit Margin Volume/Manufacturing Operating Actual Q3 2023 Margins Inefficiencies expenses Target Economics 6.8% (4.
Slide 26: 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 2.9% (total $ in millions) 120 3.5% 3.5% 40 3.6% 2.8% 100 30 80 20 60 40 10 20 0 2019 2020 2021 2022 Estimate 0 2023 2019 2020 2021 2022 Estimate Core Forklift Investments IT Systems Nu
Slide 27: Lift Truck
Lift Truck i) HYSTER-YALE
Slide 28: 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 29: HY Product Launches
HY Product Launches Launched in Q1-Q3 2023: New 2- to 3.5-ton ICE modular production started for the Asia-Pacific region. New mini 5 ton @ 600mm load center ICE counterbalanced Hyster® UT, Yale® UX lift trucks for AP region. Delivered Hydrogen powered Reach Stacker to Port of Valencia, Spain f
Slide 30: Factors Impacting Low Cost of Ownership
Factors Impacting Low Cost of Ownership Typical Truck Cost/Hour* Life Cycle Costs 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 31: 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. 31
Slide 32: Telemetry and Operator Assist Systems
Innovation Telemetry: Data and Operator Assist analysis is becoming Systems (OAS): increasingly important Technologically to operations advanced features designed Telemetry can provide a to help reinforce complete wireless asset safe and management solution productive truck operation that • Total co
Slide 33: 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 HY-automated lift trucks provide an infrastructure independent and flexible solution 33 TT
Slide 34: 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 35: 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 36: 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 37: Bolzoni
Bolzoni i) HYSTER-YALE
Slide 38: 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 2% attachments, forks and lift tables, cylinders and transmissions with an extensive product range Transmissions 25% Cy
Slide 39: Bolzoni Core Strategies: Multiple Dimensions of Growth Opportunities
Bolzoni Core Strategies: Multiple Dimensions of Growth Opportunities BOLZONI TRANSFORMATION BOLZONI GROWTH BOLZONI AMERICAS & CHINA FINANCIALS HY – BOLZONI SYNERGIES RENTAL & SECOND HAND ATTACHMENTS OEM RELATIONSHIP SILVER LINE LEVERAGE GLOBAL COST SOLUTION BOLZONI TECHNOLOGY DRIVEN SOLUTION TARGET
Slide 40: Bolzoni Transformation: Increasing Commercial Agilities in the Global Market
Bolzoni Transformation: Increasing Commercial Agilities in the Global Market Key factors to execute a successful BOLZONI GROUP CHANGES IN CHANGES IN S T R AT E G Y O R G A N I Z AT I O N MANAGEMENT PROCESSES Alignment among the companies Allocate and coordinate resources where needed ONE solid and c
Slide 41: Bolzoni Auramo Inc – Sulligent, AL - Growth Drivers in Place
Bolzoni Auramo Inc – Sulligent, AL - Growth Drivers in Place A plant to serve the Americas market • Product localization focused on specific local market requirements • Wide-handling attachments range, as well as forks • North America and Latin America market coverage • Expanded manufacturing of cyl
Slide 42: Bolzoni China: Growth Drivers in Place
Bolzoni China: Growth Drivers in Place Competitively positions Bolzoni on cost in emerging markets Wuxi (Attachments) Hebei (Forks) • Product localization focused on specific local • Manufactures a complete range of forks for lift and global market requirements trucks, construction and agricultural
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 Other JAPIC 6% 10% 12% OEM 4 OEM 1 14% 31% FORKS INTEGRAL AMERICAS 31% SIDE 30% SHIFTERS & EUROPE CARRIAGES OEM 3 OEM 2 58% 52% 22% 23% 11% ATTACHMENTS (1)
Slide 44: Nuvera Fuel Cells
Nuvera Fuel Cells i) HYSTER-YALE
Slide 45: Nuvera Is a Transformational Opportunity
Nuvera Is a Transformational Opportunity At a Glance: Application Portfolio • E-45kW & E-60kW Fuel Cell Leading, Patented Technology Technology engines SMVIC-certified • More than 15 customer Experience applications with E-series • 75+ engineers engine in demo/use Demand Tapered in Short-term • 8th
Slide 46: 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 47: 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 eng
Slide 48: Nuvera Product Platforms
Nuvera Product Platforms: Comprehensive approach to hydrogen mobility market Nuvera makes FC technology WORK for customers E-Series Fuel Cell Engines: E-45 and E-60 Stacks / Easily integrated fuel cell Subsystems module For OEMs that understand For medium- and heavy- stack deployment duty equipment
Slide 49: Nuvera supports customers along their lengthy hydrogen implementation journey
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 50: Product Platforms: Application Focus Markets
Product Platforms: Application Focus Markets Off-Road Delivery Vans & Equipment Commercial Trucks Vehicles Buses Specialty/Utility Vehicles Hyster® Toploader ZRHE / KingLong Bus In Demonstration In Demonstration H2e Power Bus with OIL India Capacity Terminal Tractors In Demonstration In Demonst
Slide 51: Product Platforms: Application Focus Markets Continued
Product Platforms: Application Focus Markets Continued Off-Road Delivery Vans & Equipment Commercial Trucks Vehicles Buses Specialty/Utility Vehicles RUAG Hybrid-APU Nexus-Power Pack Devinn Mobile Charger In Demonstration In Demonstration In Demonstration 51
Slide 52: Nuvera Integration Partners in Focus Markets
Nuvera Product Platforms: Integration Partners in Focus Markets Strategic Partnerships -Dayco (global) -UMS (Europe) -ZRHE (China) -he2 Power (India) -Hyster-Yale (Global) Application Development Vehicle Demonstration + Deployment 52
Slide 53: Key Takeaways – Q3 2023
Key Takeaways – Q3 2023 Growing Results Dissipating Healthy Backlog Improving Strong Outlook $1.0B headwinds Increasing backlog Financial Leverage Inflation moderated: Q4 ’23 continuing revenue value: Positive 61% debt to improvement 19% above Q3 ’22 Avg. sales price/ price-to-cost ratio total capit
Slide 54: Appendix
APPENDIX i) HYSTER-YALE
Slide 55: Non-GAAP Disclosure
Non-GAAP Disclosure Adjusted EBITDA is not a measurement under U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures, and is not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines Adjusted EBITDA as the following: Adjusted
Slide 56: Non-GAAP Reconciliation Adjusted EBITDA
Non-GAAP Reconciliation Adjusted EBITDA ($ in millions) Year Ended December 31 YTD Qtr. Qtr. Consolidated 2018 2019 2020 2021 2022 9/30/23 9/30/23 9/30/22 Reconciliation of Adjusted EBITDA Net income (loss) attributable to stockholders $34.7 $35.8 $37.1 $(173.0) $(74.1) $100.7 $35.8 $(37.3) Goodwill
Slide 57: Non-GAAP Reconciliation Adjusted EBITDA continued
Non-GAAP Reconciliation Adjusted EBITDA continued ($ in millions) Year Ended December 31 YTD Qtr. Bolzoni 2018 2019 2020 2021 2022 9/30/23 9/30/23 Reconciliation of Adjusted EBITDA Operating Profit (Loss) $9.5 $4.7 $1.0 $(1.8) $6.2 $12.7 $2.9 Other income (expense) (0.3) (0.2) - 0.5 0.3 0.1 0.1 Depr
Slide 58: 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