Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Q4 2022 Earnings Presentation
58 slides from Hyster-yale's earnings presentation, Feb 28, 2023
Slide 1: Q4 2022 Quarterly Investor Presentation
Q4 2022 QUARTERLY INVESTOR PRESENTATION
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 – Q4 2022
Key Takeaways – Q4 2022 Strong Results Moderating Improving 2023 Long-Term Headwinds Backlog Building on Q4 Growth Record Quarterly Momentum Increasing Revenues Supply Chain Core Strategies to shipments $985.2M Constraints Improving transform HY’s: abating ~10% backlog backlog of competitiveness P
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 Q4 2022: broad array of solutions aimed at Revenue $938.0 $92.0 $1.3 meeting
Slide 7: Strong, but Moderating Global Lift Truck Market
Strong, but Moderating Global Lift Truck Market Global Lift Truck Industry Size* Lift Truck Industry Q3* 2022 vs Q1 2022, Q2 2022 and Q4 2021 (units in thousands) 2,700 2,400 CAGR (2004 – 2021) = 7.3% 2,100 1,800 1,500 1,200 900 600 300 872 547 794 975 944 1,010 1,094 1,100 1,182 1,395 1,538 1,507 1
Slide 8: Lift Truck Unit Class Shipments as of 9/30/22
Lift Truck Unit Class Shipments as of 9/30/22 (Industry / HY) Industry Units by Geography HY Lift Truck Units Sold by Geography Asia-Pacific Middle East & Africa Asia- 7% Pacific/ HY unit sales mix 3% Japan Japan China 4% 6% 7% more heavily Europe 30% EMEA weighted toward the Americas China 29% 58%
Slide 9: Impact of Headwinds on HY are Moderating
Impact of Headwinds on HY are Moderating Q4 21 Q4 22 Q1 23 Supplier component volume shortages Q4 21 Q4 22 Q1 23 Freight costs and constraints Q4 21 Q4 22 Q1 23 Component cost inflation Q4 21 Q4 22 Q1 23 Timing of price increases to match cost increases Potential Headwinds Marks progress against hea
Slide 10: Improved Q4 2022 Consolidated Results versus Q4 2021
Improved Q4 2022 Consolidated Results versus Q4 2021 Operating Net Adjusted Shipments Revenues Profit Income EBITDA(2) 27,100 $985.2M $19.8M $7.6M $32.7M 400 18.7% $126.8M(1) $110.9M(1) $68.1M units Record quarterly consolidated revenues in Q4 2022, up 18.7% versus Q4 2021 due to higher pricing an
Slide 11: Results for Q4 2022 Consolidated vs. Q4 2021
Results for Q4 2022 Consolidated vs. Q4 2021 CONSOLIDATED HY HY ($ in millions) Q4 2022 Q4 2021 Variance Shipments 27,100 26,700 400 Revenues $985.2 $829.7 $155.5 Segment Comments Gross Profit $146.7 $63.5 $83.2 Price increase benefits drove a 19.7% increase in Lift Truck revenues, far outpacing t
Slide 12: Improving 2023 Outlook
Improving 2023 Outlook Backlog levels will drive future performance and support unit margin expansion Lift Truck Bolzoni Nuvera Expect a significant Expect increased Comparable FY increase in margins over time 2023 operating loss Substantial 2023 operating revenues and a and higher versus FY 2022, b
Slide 13: Disciplined Approach to Capital Allocation and Cash Usage
Disciplined Approach to Capital Allocation and Cash Usage Protecting Liquidity in current environment INVESTMENTS • Unused Borrowing Capacity of ~$183m and ~$59m in Cash @ 12/31/22 Lift Truck Nuvera Expense and capital Investments to • Managing capital expenditure investments in strategic commercial
Slide 14: Core Strategies Designed to Drive Economic Engine by Increasing Market Share
Core Strategies Designed to Drive Economic Engine by Increasing 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 Strat
Slide 15: Transformational Projects Create a Strong Long-Term Investment Option
Transformational Projects 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 Transformation
Slide 16: Strategic Perspective
STRATEGIC PERSPECTIVE i) HYSTER-YALE
Slide 17: Overview
Overview i) HYSTER-YALE
Slide 18: Overview and Sources of Revenue
Overview and Sources of Revenue A leading global lift truck manufacturer HY sales of ~ 101,800 lift truck Additional ~ 8,000 lift Large installed population truck units sold in units in LTM 12/31/22 that drives parts sales ~78,700 units sold – produced in HY plants 2022 by Sumitomo ~ 990,000 lift tr
Slide 19: Full Lift Truck Product Line
Full Lift Truck Product Line - Over 600 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 20: 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 21: Hyster-Yale has a Global Manufacturing and Sales Footprint
Hyster-Yale has a Global Manufacturing and Sales Footprint Danville, Illinois Gävle, Sweden Järvenpää, Finland Homewood, Illinois Frimley, UK Commercial Attachment Parts Distribution Center Hebei, China Wuxi, China Inventory and Parts; Customer Irvine, Scotland Division Headquarters; Subsidiary Manu
Slide 22: Lift Truck Market Levels Have Decreased in All Geographic Areas
Lift Truck Market Levels Have Decreased in All Geographic Areas from Peaks in 2021 But Rate of Change is Slowing Global Lift Truck Market Rates of Change through 9/30/22 ( 3 & 12-month rates of change trend) North Brazil Europe America Asia/ China Pacific (excluding China) _____________________ Sour
Slide 23: 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 Europe 265,896 278,024 312,455 327,173 380,557 445,583 411,107 222,883 299,387 368,286 North America 147,322 155,191 186,192 198,058 212,953 191,384 159,279 98,338
Slide 24: HY Lift Truck Unit Shipments as of 12/31/22
HY Lift Truck Unit Shipments as of 12/31/22 (Quarter & Full Year) 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 6% 7% Class 1 Electric Class 1 Electric 20% 21% Class 5 ICE EMEA 35% Class
Slide 25: 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 • Focus on increasing 7% Operating Profit sales
Slide 26: Lift Truck Long-Term Operating Profit Margin Target
Lift Truck Long-Term Operating Profit Margin Target As HY works through low-margin backlog, material cost inflation moderates and supply chain constraints dissipate, Gap to Target Economics are expected to narrow Operating Profit Margin Volume/Manufacturing Operating Actual Q4 2022 Margins Inefficie
Slide 27: 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 70 140 (total $ in millions) 60 2.6% (total $ in millions) 120 3.5% 50 3.5% 3.6% 2.8% 100 40 80 30 60 20 40 10 20 0 2019 2020 2021 2022 Estimate 0 2023 2019 2020 2021 2022 Estimate Core Forklift Investments IT Systems
Slide 28: Lift Truck
Lift Truck i) HYSTER-YALE
Slide 29: 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 30: HY Product Launches
HY Product Launches Launched in 2022: Production of New modular 2-3.5 ton Pneumatic ICE trucks for Americas. Production of additional options for the 2-3.5 modular products for EMEA. Production of new 4 to 5-ton ICE Hyster® UT and Yale® UX lift trucks for EMEA. Production of new 5 to 7-ton I
Slide 31: 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 32: 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. 32
Slide 33: Lift Truck Telemetry and Operator Assist System Solutions
Lift Truck Telemetry and Operator Assist System Solutions Operator Assist Systems: Technologically advanced features designed to help reinforce safe and productive Telemetry: Data and analysis is becoming truck operation increasingly important to operations that help Telemetry can provide a complete
Slide 34: 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 (Balyo) (JBT) HY-automated lift trucks provide an infrastructure independent and flexible solution 34 TT
Slide 35: 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 36: 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 37: 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 38: Bolzoni
Bolzoni i) HYSTER-YALE
Slide 39: 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 3% attachments, forks and lift tables, cylinders and transmissions with an extensive product range Transmissions 24% Cy
Slide 40: Bolzoni Core Strategies: Multiple Dimensions of Growth Opportunities
Bolzoni Core Strategies: Multiple Dimensions of Growth Opportunities BOLZONI TRANSFORMATION BOLZONI GROWTH BOLZONI AMERICAS & CHINA FINANCIALS BOLZONI Transformation HY – BOLZONI SYNERGIES RENTAL & SECOND HAND ATTACHMENTS OEM RELATIONSHIP SILVER LINE LEVERAGE GLOBAL COST SOLUTION BOLZONI TECHNOLOGY
Slide 41: 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 42: 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 43: 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 44: 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 45: Nuvera
i) HYSTER-YALE
Slide 46: 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 • First bus with E-series Experience engine MIIT certified • 75+ engineers • High-efficiency Fuel Cell Demand Tapered in Short-term
Slide 47: 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 48: 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 49: Nuvera Product Platforms: Comprehensive approach to hydrogen mobility market
Nuvera Product Platforms: Comprehensive approach to hydrogen mobility market Nuvera makes FC technology WORK for customers E-Series Fuel Cell Engines: Stacks / E-45 and E-60 Subsystems Easily integrated fuel cell module For OEMs that understand stack deployment For medium- and heavy- duty equipment
Slide 50: Nuvera Product Platforms: Integrated service / support to customers
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 51: Product Platforms: Application Focus Markets
Product Platforms: Application Focus Markets Off-road Delivery Vans & equipment Commercial Vehicles Trucks Specialty/Utility Buses Vehicles Dannar® Mobile Power Station: Hyster® Toploader: Demo unit ZRHE / KingLong bus: FC concept in development Operational and in Demonstration H2e Power B
Slide 52: Nuvera Product Platforms: 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 – Q4 2022
Key Takeaways – Q4 2022 Strong Results Moderating Improving 2023 Long-Term Headwinds Backlog Building on Q4 Growth Record Quarterly Momentum Increasing Revenues Supply Chain Core Strategies to shipments $985.2M Constraints Improving transform HY’s: abating ~10% backlog backlog of competitiveness P
Slide 54: Appendix
APPENDIX i) HYSTER-YALE
Slide 55: Non-GAAP Disclosure
Non-GAAP Disclosure Adjusted EBITDA is not a measurement under U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures, and is not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines Adjusted EBITDA as the following: Adjusted
Slide 56: Non-GAAP Reconciliation Adjusted EBITDA
Non-GAAP Reconciliation Adjusted EBITDA ($ in millions) Year Ended December 31 Qtr. Qtr. Consolidated 2018 2019 2020 2021 2022 12/31/21 12/31/22 Reconciliation of EBITDA Net income (loss) attributable to stockholders $34.7 $35.8 $37.1 $(173.0) $(74.1) $(103.3) $7.6 Goodwill and other intangible asse
Slide 57: Non-GAAP Reconciliation Adjusted EBITDA continued
Non-GAAP Reconciliation Adjusted EBITDA continued ($ in millions) Year Ended December 31 Qtr. Qtr. Bolzoni 2018 2019 2020 2021 2022 12/31/21 12/31/22 Reconciliation of EBITDA Operating Profit (Loss) $9.5 $4.7 $1.0 $(1.8) $6.2 $(2.2) $2.0 Other income (expense) (0.3) (0.2) - 0.5 0.3 0.5 0.3 Depreciat
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