Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Q1 2023 Earnings Presentation
60 slides from Hyster-yale's earnings presentation, May 3, 2023
Slide 1: Q1 2023 Quarterly Investor Presentation
Q1 2023 QUARTERLY INVESTOR PRESENTATION EXHIBIT 99
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 @) HYSTER-YALE
Slide 4: Our Businesses
Our Businesses 4 Hyster-Yale Materials Handling, Inc. (NYSE:HY) is one company with three separately managed businesses F O R E A C H B U S I N E S S Board of Directors CEO P&L and balance sheet Tailored incentive plans Our Attachments Business Bolzoni Our Core Lift Truck Business Hyster-Yale
Slide 5: Key Takeaways – Q1 2023
Price-to-cost ratio improving Cost inflation rate slowing, fewer supplier constraints Americas improvement outpacing EMEA Key Takeaways – Q1 2023 5 Strong 2023 Results Expected Net income of $26.6M was ahead of expectations Backlog decrease of ~13% from Q1 2022 peak due to higher shipments and lower
Slide 6: 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 6 Q1 2023: Lift Truck Bolzoni Nuvera Revenue $948.7
Slide 7: Strong, but Moderating Global Lift Truck Market
872 547 794 975 944 1,010 1,094 1,100 1,182 1,395 1,538 1,507 1,638 2,341 2,183 0 300 600 900 1,200 1,500 1,800 2,100 2,400 2,700 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CAGR (2004 – 2022) = 6.5% _____________________ Source: ITA. Represents quarterly order intake
Slide 8: Lift Truck Unit Class Shipments and Industry Mix
Class 1 Electric 25% Class 2 Electric 15% Class 3 Electric 12% Class 4 ICE 6% Class 5 ICE 42% Europe 28% Americas 23% China 35% Japan 4% Asia-Pacific 7% Middle East & Africa 3% Lift Truck Unit Class Shipments as of 12/31/22 (Industry / HY) 8 Class 1 Electric 22% Class 2 Electric 11% Class 3 Electric
Slide 9: Impact of Headwinds on HY are Moderating
Impact of Headwinds on HY are Moderating 9 Supplier component volume shortages Freight costs and constraints Component cost inflation Timing of price increases to match cost increases Potential Headwinds Russia/Ukraine conflict expansion Economic Recessionary Trends Q4 21 Q4 21 Q4 21 Q4 21 Q4 22 Q4
Slide 10: Improved Q1 2023 Consolidated Results versus Q1 2022
Improved Q1 2023 Consolidated Results versus Q1 2022 10 ________ (1) EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. See non-GAAP explanations and the related reconciliations to GAAP measures in the Appendix starting on page 56. Shipments
Slide 11: Results for Q1 2023 Consolidated vs. Q1 2022
CONSOLIDATED HY HY Q1 2023 Q1 2022 Variance Shipments 25,200 23,900 1,300 Revenues $999.3 $827.6 $171.7 Gross Profit $174.4 $101.2 $73.2 Operating Expenses ($131.8) ($119.5) ($12.3) Operating Profit (Loss) $42.6 ($18.3) $60.9 Net Income (Loss) $26.6 ($25.0) $51.6 EBITDA(2) $56.7 ($5.3) $62.0 SEGMENT
Slide 12: Improving 2023 Outlook
12 Comparable operating loss in 2023 vs. 2022, but higher volume of demos should enhance foundation for improved returns Bolzoni Nuvera Expect a significant increase in revenues and a substantial operating profit in 2023 Lift Truck Improving 2023 Outlook Expect increased margins over time and higher
Slide 13: Disciplined Approach to Capital Allocation and Cash Usage
Disciplined Approach to Capital Allocation and Cash Usage 13 Return Cash to Stockholders Annual Dividends(1) 2021 2022 YTD 2023 $21.6m $1.29/ share $21.8m $1.29/ share $5.6m $1.29/ share (1) Dollars represent total dividends paid during calendar year, while dividend per share represents the annualiz
Slide 14: Core Strategies Designed to Drive Economic Engine
Bolzoni Strategic Projects Parts and Service Volume Large Lift Truck Population in Service Volume Economies of Scale Geographic and Product Balance Worldwide Distribution Strength to Drive Market Share Be the Leader in Independent Distribution Provide Lowest Cost of Ownership, while Enhancing Produc
Slide 15: Transformational Projects Create a Strong Long-Term Investment Option
Transformational Projects Create a Strong Long-Term Investment Option 15 • Commercialization of E-45 / E-60 engines globally • Development of 360kW and 470kW modular fuel cell-powered generators • Development of larger E125 engine • Commercial Partnerships Bolzoni Transformation Nuvera Transformatio
Slide 16: Strategic Perspective
STRATEGIC PERSPECTIVE @) HYSTER-YALE
Slide 17: Overview
Overview {jy HYSTER-YALE
Slide 18: Overview and Sources of Revenue
ICE Units 43% Electric Units 30% Bolzoni 5% Nuvera <1% Aftermarket 15% Service, Rental & Other 7% Overview and Sources of Revenue 2022 Worldwide Sales by Product _____________________ (1) Includes Big Truck sales that represent 9% of total sales. (2) Represents Hyster-Yale North American Lift Truck
Slide 19: Full Lift Truck Product Line - Over 600 Truck Models
Reach Truck Internal Combustion EngineReach Trucks Counterbalance 4-wheel Diesel Forklift Port MachineryICEWarehouse EquipmentElectric Internal Combustion Engine Lithium-Ion Very Narrow Aisle Trucks Full Lift Truck Product Line - Over 600 Different Truck Models Available…. 19 Electric Counterbalance
Slide 20: Broad Range of Power Options, Attachments and Solutions
…with a Broad Range of Power Options, Attachments and Solutions 20 Push Pulls Lifting Tables Clamps Multipallets Rotators Sideshifters Fork Positioners Forks 70,000+ assets under management Attachments Solutions Electric Counterbalanced Rider Trucks Electric Narrow Aisle Trucks Electric Hand Trucks
Slide 21: Global Manufacturing and Sales Footprint
Hyster-Yale has a Global Manufacturing and Sales 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 Cente
Slide 22: Global Lift Truck Market is Moderating
EuropeBrazilNorth America Asia/ Pacific (excluding China) China 22 _____________________ Source: WITS. Bookings Reports through 12/31/22. WITS Industry Data reported one quarter in arrears. Global Lift Truck Market is Moderating, with Decreases in all Geographic Areas from Peaks in 2021 Global Lift
Slide 23: Industry Lift Truck Market Size Data
Industry Lift Truck Market Size Data 23 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 147,322 155,191 186,192 198,058 212,953 191,38
Slide 24: HY Lift Truck Unit Shipments as of 3/31/23 and LTM
Class 1 Electric 21% Class 2 Electric 7% Class 3 Electric 31% Class 4 ICE 5% Class 5 ICE 36% ____________________ Source: Company: Q1 2023 Units Shipped Note: Units sold direct by SN JV are not included ICE = Internal Combustion Engine Class 1 Electric 22% Class 2 Electric 11% Class 3 Electric 7%Cla
Slide 25: Committed to Achieving Its Financial Targets
Hyster-Yale is Committed to Achieving Its Financial Targets Bolzoni Operating Profit 7% NUVERA • Focus on increasing sales near term • Focus on reducing losses and moving to profitability over time Each of the three businesses has long-term financial objectives 25 Lift Truck Operating Profit 7% ROTC
Slide 26: Lift Truck Long-Term Operating Profit Margin Target
26 Lift Truck Long-Term Operating Profit Margin Target Target Economics 7.0% FY Operating Profit Margin @ 140,000 unit production Actual Q1 2023 5.0% Actual LTM 3/31/23 1.4% (0.7%) Maintain discipline as volume increases +3.0% Improving Production Efficiencies as Supply Chain shortages dissipate
Slide 27: Capital and R&D Expenditures
0 10 20 30 40 50 60 70 2019 2020 2021 2022 Estimate 2023 Core Forklift Investments IT Systems Nuvera Bolzoni Capital and R&D Expenditures 27 Cap Ex spend in 2023 estimated to be higher than reduced 2022 spend (to ta l $ in m ill io ns ) C A P I TA L E X P E N D I T U R E S R & D E X P E N D I T U R
Slide 28: Lift Truck
Lift Truck {jy HYSTER-YALE
Slide 29: New Yale Brand Identity Launched in March 2023
New Yale® Brand Identity Launched in March 2023 29 Launched new brand identity for Yale Yale Lift Truck Technologies focused on solving the toughest labor, safety and productivity challenges through technology integration and a customer-success philosophy designed specifically to address custome
Slide 30: Products and Technology
Primary industry trends are creating significant opportunities to use product and technology development to offer breakthrough solutions Products and Technology 30 Right truck at the right price Right products for low-intensity use Cost of ownership and environment Integrated with focus on productiv
Slide 31: Product Launches in Q1 2023 and Expected in 2023
Launched in Q1 2023: New Platform double stacker with drive by wire steering and enhanced productivity for EMEA region. New 12-liter diesel engine option (Tier 3 emissions) for the Reach Stackers for AP region. New 14-meter mast option for the Moving Mast Reach Truck (MMRT) for global regions.
Slide 32: Life Cycle Costs
Life Cycle Costs 32 *Typical truck cost/hour for 5,000lb North American applications Operator 69% Fuel 11% Finance 9% Service & repair 11% Cost/hour Fleet management Extended warranty Telematics Productivity Ergonomics/ fatigue Auto functions Automated trucks Energy usage Alternative powertrains Int
Slide 33: Lift Truck Modular and Scalable Platforms
Lift Truck Modular and Scalable Platforms 33 Customers seek efficiency in their operations. Scalable configurations provide optimal solutions. Launching as the Hyster® A Series and the Yale® Series N
Slide 34: Telemetry and Operator Assist System Solutions
Lift Truck Telemetry and Operator Assist System Solutions 34 Telemetry: Data and analysis is becoming increasingly important to operations Telemetry can provide a complete wireless asset management solution • Total cost of operation visibility • Productivity and utilization • Operator performance Op
Slide 35: Lift Truck Automation Products
TT Lift Truck Automation Products 35 Horizontal Vertical Partner Solutions Customers are seeing great value in operator free, continuous operations HY-automated lift trucks provide an infrastructure independent and flexible solution Modular, Scalable Internally Developed Automation
Slide 36: Transform Commercial Competitiveness in an Evolving Market
Objective is to Transform Commercial Competitiveness in an Evolving Market 36 Customer’s Industry Requirements and Toughest Problems to be Solved HY Transformative Solutions Hyster-Yale Evolving Sales Transformation Participation-Focused Sales Management Advanced Selling Systems Industry-Focused App
Slide 37: Independent Dealer Network Drives Competitive Value
37 Increasing HY engagement in the distribution process to deliver an “As One” customer experience with our dealer partners Independent Dealer Network Drives Competitive Value HY Augmented Sales Efforts Expands Market Participation Scaling Global Distribution to Achieve HY Strategies Enhanced Distri
Slide 38: Distribution Engagement
Distribution Engagement 38 Enhancing performance Dealer Excellence programs Dealer alignment Term-based contracts Hyster-Yale providing additional support ~900 global dealer locations ~2,900 application consultants ~11,000 service technicians Independent Exclusive Entrepreneurial Profitable
Slide 39: Bolzoni
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Slide 40: Strong Base and Opportunities to Leverage Materials Handling Solutions
Strong Base and Opportunities to Leverage Materials Handling Solutions 40 One of the world’s leading manufacturers of lift truck attachments, forks and lift tables, cylinders and transmissions with an extensive product range PORTFOLIO PRODUCTS of the Bolzoni Group(1) Lift tables 2% Attachments 51% F
Slide 41: Bolzoni Core Strategies: Multiple Dimensions of Growth
Bolzoni Core Strategies: Multiple Dimensions of Growth Opportunities 41 BOLZONI TRANSFORMATION HY – BOLZONI SYNERGIES TARGET NEW CUSTOMER BOLZONI TECHNOLOGY DRIVEN SOLUTION OEM RELATIONSHIP SILVER LINE LEVERAGE GLOBAL COST SOLUTION BOLZONI FINANCIALS RENTAL & SECOND HAND ATTACHMENTS BOLZONI GROWTH A
Slide 42: Bolzoni Transformation: Increasing Commercial Agilities
Bolzoni Transformation: Increasing Commercial Agilities in the Global Market G R O U P S T R A T E G Y C H A N G E S I N O R G A N I Z A T I O N C H A N G E S I N M A N A G E M E N T P R O C E S S E S Alignment among the companies ONE solid and committed team Fix a common target Share best practices
Slide 43: Bolzoni Auramo Inc – Sulligent, AL - Growth Drivers
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 44: Bolzoni China: Growth Drivers in Place
Bolzoni China: Growth Drivers in Place Wuxi (Attachments) • Product localization focused on specific local and global market requirements • Competitive pricing and quick delivery time • Improved productivity and efficiency from production process improvements • Silver Line range manufacturing addres
Slide 45: Bolzoni Has a Strong OEM Foundation
Bolzoni Has a Strong OEM Foundation 45 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 (1) For the 12 months ended 12/31/22 (2) Excludes cylinder sales to HY OEM 1 31% OEM 2 23% OEM 3
Slide 46: Nuvera
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Slide 47: Nuvera Is a Transformational Opportunity
Nuvera Is a Transformational Opportunity 47 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 Experience • 75+ engine
Slide 48: Nuvera Has a Distinctive Place Within Hyster-Yale
Nuvera Has a Distinctive Place Within Hyster-Yale 48 Growing hydrogen fuel cell market provides opportunities for Nuvera to add significant value to HY • Venture business, with strong commercialized products, focusing on gaining sales • Important supplier fit as part of HY’s focus on a broad range o
Slide 49: Technology: Optimized Fuel Cell Engine Design
Technology: Optimized Fuel Cell Engine Design 49 Embedded controls For ease of integration, reliability, and durability Unique Stack architecture High efficiency and power density Telemetry Effective remote monitoring of FC engine Nuvera® FC Engines enable commercial and industrial vehicle electrifi
Slide 50: Nuvera Product Platforms
Nuvera Product Platforms: Comprehensive approach to hydrogen mobility market 50 E-Series Fuel Cell Engines: E-45 and E-60 Easily integrated fuel cell module For medium- and heavy- duty equipment and vehicles EN-125 In development Stacks / Subsystems For OEMs that understand stack deployment Broadly
Slide 51: Integrated Service / Support to Customers
Nuvera Product Platforms: Integrated service / support to customers 51 Nuvera supports customers along their lengthy hydrogen implementation journey Decision GO ELECTRIC Decision USE FUEL CELLS Decision CHOOSE NUVERA Vehicle Test Electrification Integration Design Demo Vehicle Decision GO TO SERIES
Slide 52: Product Platforms: Application Focus Markets
Product Platforms: Application Focus Markets Capacity Terminal Tractors In Demonstration RUAG Hybrid-APU In Demonstration Hyster® Toploader In Demonstration H2e Power Bus with OIL India Under Development ZRHE / KingLong Bus In Demonstration 52 Devinn Mobile Charger In Demonstration Off-Road Equipm
Slide 53: Integration Partners in Focus Markets
Nuvera Product Platforms: Integration Partners in Focus Markets 53 Strategic Partnerships Application Development Vehicle Demonstration + Deployment -Dayco (global) -UMS (Europe) -ZRHE (China) -he2 Power (India) -Hyster Yale (Global)
Slide 54: Key Takeaways – Q1 2023
Price-to-cost ratio improving Cost inflation rate slowing, fewer supplier constraints Americas improvement outpacing EMEA Key Takeaways – Q1 2023 54 Strong 2023 Results Expected Net income of $26.6M was ahead of expectations Backlog decrease of ~13% from Q1 2022 peak due to higher shipments and lowe
Slide 55: Appendix
APPENDIX {jy HYSTER-YALE
Slide 56: Non-GAAP Disclosure
Non-GAAP Disclosure 56 Adjusted EBITDA is not a measurement under U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures, and is not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines Adjusted EBITDA as the following: Adjust
Slide 57: Reconciliation of Adjusted EBITDA
($ in millions) Year Ended December 31 LTM Qtr. Qtr. Consolidated 2018 2019 2020 2021 2022 3/31/23 3/31/23 3/31/22 Reconciliation of Adjusted EBITDA Net income (loss) attributable to stockholders $34.7 $35.8 $37.1 $(173.0) $(74.1) $(22.5) $26.6 $(25.0) Goodwill and other intangible assets impairment
Slide 58: Non-GAAP Reconciliation Adjusted EBITDA continued
Non-GAAP Reconciliation Adjusted EBITDA continued 58 ($ in millions) Year Ended December 31 LTM Qtr. Bolzoni 2018 2019 2020 2021 2022 3/31/23 3/31/23 Reconciliation of Adjusted EBITDA Operating Profit (Loss) $9.5 $4.7 $1.0 $(1.8) $6.2 $8.5 $4.4 Other income (expense) (0.3) (0.2) - 0.5 0.3 0.6 0.1 De
Slide 59: Valuation Approach Should Vary by Business
Valuation Approach Should Vary by Business 59 Lift Truck & Attachments Businesses Fuel Cell Business • Mature Cyclical Industry • Market Leading Products and Position • Operating Cash Generation • Value Using Traditional Valuation Model of EBITDA Multiple on a Net Debt Basis Multiple should reflect
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Hyster-Yale Materials Handling — Q1 2023 Earnings Presentation on 6ix