Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Investor Day (November 2019)
171 slides from Hyster-yale's investor day presentation, Nov 19, 2019
Slide 1: Transforming the Future Investor Day 2019
TRANSFORMING THE FUTURE INVESTOR DAY 2019 TUESDAY, NOVEMBER 19 Mass Customization Electrification Automation Globalization Digitization Exhibit 99
Slide 2: Introduction
ENTER SESSION TITLE HERE… Presenter Name Introduction Christina Kmetko, Investor Relations
Slide 3: 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 4: Today's Presenters
Today’s Presenters Transforming the Future 8:15 – 8:20 am Christina Kmetko 8:20 – 8:40 am Alfred Rankin, Jr. 8:40 – 9:00 am David LeBlanc 9:00 – 9:30 am Tony Salgado 9:30 – 9:55 am Rajiv Prasad 9:55 – 10:00 am Colin Wilson 10:00 – 10:35 am Break & Questions 10:35 – 10:55 am Roberto Scotti 10:55 – 11
Slide 5: Email for Questions Submitted by Webcast Audience
ir@hyster-yale.com Subject: Investor Day Question Transforming the Future E-mail for Questions Submitted by Webcast Audience
Slide 6: Strategic Overview
ENTER SESSION TITLE HERE… Presenter Name Strategic overview Alfred Rankin, Jr., Chairman, President and CEO of Hyster-Yale Materials Handling Chairman of Hyster-Yale Group
Slide 7: Our Businesses
Our Businesses Our Attachment Business Our Fuel Cell Business Transforming the Future Our Core Lift Truck Business
Slide 8: Our Long-Term Approach
Our Long-Term Approach Long-term growth Long-term shareholders Shareholder protection Senior management incentivized as long-term shareholders Increase shareholder value Transforming the Future
Slide 9: 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 _____________________ Note: Throughout this investor
Slide 10: Overview and Sources of Revenue
Overview and Sources of Revenue _____________________ Company estimate. Number of units as of 12/31/18 A leading global lift truck manufacturer in terms of units sold Transforming the Future Diverse source of revenue by product segments Diverse customer base in more than 780 industries worldwide Dis
Slide 11: 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 12: Full Lift Truck Product Line
Reach Trucks Counterbalance 4-wheel Diesel Forklift Port Machinery ICE Warehouse Equipment Electric Forklifts 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 Counterbalanced Ri
Slide 13: 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 14: Lift Truck Profitability Trend
Lift Truck Profitability Trend –Impacted by Tariffs, but Improving ($ in millions) 7% LIFT TRUCK OPERATING PROFIT MARGIN TARGET * Prior Peak ** Current Peak / 2018 Operating Profit Margin impacted by effect of tariffs Transforming the Future
Slide 15: 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
Slide 16: Basic Business Areas
Basic Business Areas Geographic and Product Balance Worldwide Distribution Strength to Drive Market Share Parts and Service Volume Large Lift Truck Population in Service Volume Economies of Scale Design Component commonality Supply Chain Manufacturing Quality Marketing Parts Infrastructure Capital r
Slide 17: Core Strategies and Transformational Initiatives
Core Strategies and Transformational Initiatives Provide Lowest Cost of Ownership, while Enhancing Productivity for Customers Be the Leader in the Delivery of Industry- & Customer-Focused Solutions Be the Leader in Independent Distribution Be the Leader in the Attachments Business Grow in Emerging M
Slide 18: Our Financial Objectives Over the Next Few Years
Our Financial Objectives Over the Next Few Years ROTCE Operating profit 7% >20% Transforming the Future Achieved by reaching target volumes and margins with required SG&A
Slide 19: Our Agenda and Presenters Today
Our Agenda and Presenters Today Alfred Rankin, Jr. Strategic Overview David LeBlanc Lift Truck Industry Overview Tony Salgado Core Lift Truck Business Positioning Rajiv Prasad Product and Technology Colin Wilson Summary of Lift Truck Roberto Scotti The Attachment Business Lucien Robroek The Fuel Cel
Slide 20: Lift Truck Industry Overview
ENTER SESSION TITLE HERE… Presenter Name Lift Truck Industry overview David LeBlanc, Vice President, Strategy, Planning, and Business Development
Slide 21: Macro Drivers Affecting All Industries Today
Macro Drivers Affecting All Industries Today URBANIZATION DEMOGRAPHICS GLOBALIZATION INNOVATION Disruptive Forces Driving Growth & Opportunity Increased Value Added, Leverage of Core, Economies of Scale
Slide 22: Industry Overview Summary
Industry Overview Summary Tightening labor markets – In West & high-growth regions Global trade – Increasing freight & material movements Rise of e-commerce - Redrawing supply chains Technology driven growth Supported by stable industry & company foundation Operator demographics - Ergonomics & Safet
Slide 23: Global Lift Truck Industry Size
Global Lift Truck Industry Size _____________________ Source: WITS. Long-term CAGR (2004 – 2018) = 5.7% (units in thousands) _____________________ Source: WITS. LTM 9/30/19 Orders Reports. Global Lift Truck Industry Breakdown (Units) Class II/III Class I Class IV/V (ICE) CHINA AMERICAS ASIA-PACIFIC
Slide 24: Global Lift Truck Industry Trajectory
Global Lift Truck Industry Trajectory Solid core growth, adjusting to volatility in global trade dynamics _____________________ Source: WITS. LTM 9/30/19 Orders Reports. Demand stabilizing at trend levels Supply chain re-balance drives more efficient & profitable growth _____________________ Source:
Slide 25: The Rise of E-commerce
Global Lift Truck Industry: The rise of e-commerce Availability Optimization Service & Experience Competition Warehouse & Fulfillment Center Growth Inventory Held in Stores Supply Chain Optimization Redrawing Supply Chain Infrastructure … To Clicks From Bricks… Source: US Census Bureau, Construction
Slide 26: Rising E-commerce & Increasing Global Trade
Global Lift Truck Industry: Rising e-commerce & increasing global trade New Distribution Centers & Global Trade Drive Industry Volume Growth Over 700 million square feet of warehouse space added since 2006 E-commerce as part of total retail sales 2006 2017 2022 $460B $750B $150B 3% 13% 17% 1 Lift Tr
Slide 27: Tight Labor Markets
Multiple Drivers of Value-Added Expansion: Tight labor markets 6.5% 6.5% 22.0% 20.1% 12.0% 6.0% 10.3% 8.1% 6.0% 4.3% 4.3% 1.3% 1.3% 26.3% and the East In the West U.S. – Civilian unemployment rate Seasonally adjusted, 1990 - 2019 Source: National Bureau of Statistics of China - 2018 China average ye
Slide 28: Growing Customer Concern for Workplace Safety
Multiple Drivers of Value-Added Expansion: Growing customer concern for workplace safety Source: Occupational Health and Safety Administration (OSHA) and Industrial Truck Association (ITA) According to OSHA estimates: 61,800 fork truck lost time accidents annually 34,900 serious fork truck accidents
Slide 29: Distribution Center Productivity
Multiple Drivers of Value-Added Expansion: Distribution center productivity 6.5% 6.5% 22.0% 20.1% 12.0% 6.0% 10.3% 8.1% 6.0% 4.3% 4.3% 1.3% 1.3% 26.3% DC’s are the core of e-commerce operations Warehouse productivity increasingly key success factor
Slide 30: Technology Accelerators Drive Differentiation
Technology Accelerators Drive Differentiation, Value Capture & Share Gain 19.5% 14.6% 9.0% 7.5% 6.3% 6.2% 6.5% 6.5% 22.0% 20.1% 12.0% 6.0% 10.3% 8.1% 6.0% 4.3% 4.3% 1.3% 1.3% 26.3% Electrification & Clean Energy Electric Products growth trajectory graphic 2018 Key Automotive Trends “Fuel cell electr
Slide 31: Digital Transformation – Telemetry
6.2% 6.5% 6.5% 22.0% 4.3% 4.3% 1.3% 1.3% 26.3% Technology Accelerators: Digital Transformation – Telemetry Taking service excellence & low cost of ownership to the next level Service Excellence: Taking low cost of ownership to the next level Predictive Maintenance Incident Tracking Equipment Utiliza
Slide 32: Digital Transformation – Operator Assist
Technology Accelerators: Digital Transformation – Operator Assist Significantly expanding the productivity solution set Operator Assist significantly expanding productivity solution set Awareness options
Slide 33: Expanded Productivity Tools & Operator Assistance
Expanded Productivity Tools & Operator Assistance Benchmarking & Leveraging the Automotive Industry… Direct customer education Ensure price communicates value Create application specific or packaged offerings Available updates to keep technologies fresh Driving Customer Adoption Is Key … Operator As
Slide 34: Internet of Things – Data Analytics
Critical Point of Information Capture Turning Data into Insights Technology Accelerators: Internet of Things – Data Analytics Telemetry leadership foundation for unique customer productivity solutions
Slide 35: Digital Transformation – Commercial Excellence
Direct Customer Engagement Technology Accelerators: Digital Transformation – Commercial Excellence Economics of directly engaging with customers have changed Sales Force Excellence Industry Consultant Solution Selling Sales Complexity Product and Solution Differentiation Transactional Selling
Slide 36: Automation Solutions
INDOOR Controlled Environment Horizontal & Vertical Technology Accelerators: Automation Solutions Fully Automated • Hybrid Solutions • Application Focused OUTDOOR Low Controlled Environment COMPLEX Complex Applications Other Load Formats Warehouses Manufacturing Truck Loading Ports & Terminals Paper
Slide 37: Technology Driven Growth Supported by Stable Foundation
Technology Driven Growth Supported by Stable Industry & Company Foundation Solid Core Market Increasing Value Add Technology Accelerators Clear secular growth drivers Increasing margins & differentiation Increasing scope for differentiation & share gain Rise of e-commerce Increasing global trade Dim
Slide 38: Core Lift Truck Business Positioning
ENTER SESSION TITLE HERE… Presenter Name Tony Salgado, Chief Operating Officer Core Lift Truck Business Positioning
Slide 39: Core Lift Truck Business as Foundation
Core Lift Truck Business as Foundation for Future Expansion Continually Improving, Strong Lift Truck Core Business Mature business model delivering significant market share in developed markets Broad and competitive product portfolio Strong suite of solutions to address industry needs High level of
Slide 40: Further Strengthening Core Business – Operational Excellence
7 Steps of Sales Scalable Product Development Flexible Lean Manufacturing Digitally Enhanced Business Processes Industry-Based Sales Approach Independent Distribution Support Systems Robust Global Supply Chain Connected and Responsive After-Sales Support Further Strengthening Core Business – Operati
Slide 41: Commercial Expansion
Core Lift Truck Business Commercial Expansion GLOBALIZATION PRODUCT RANGE COVERAGE ß Increasing HY market participation capability à 41
Slide 42: Globalization – Investing in High-Growth Regions
Globalization – Investing in High-Growth Regions INDIA Distribution Design Sourcing Manufacturing SINGAPORE New Asia-Pacific HQ HY flagship regional distribution MEXICO Product manufacturing CHINA Expanding global distribution BRAZIL Broadening production range Export source for Latin America
Slide 43: Globalization – Leveraging China Operations
Globalization – Leveraging China Operations Addressing key barriers to global growth: Lack of critical mass in Asia region Insufficient low-intensity product range New China investment to drive share growth in: Greater Asia region and emerging markets Global low-intensity markets ___________________
Slide 44: Case Study: Hyster-Yale Maximal Acquisition Success
Case Study: Hyster-Yale Maximal Acquisition Success Asia Operations Investment Success Integration plan on track New global low-intensity product range launched Production growth plan expanded Catalyst for product development, sourcing and sales synergies Driving value proposition for independent di
Slide 45: Emerging Market Development Center
Emerging Market Development Center Increasing speed to market by combining HY design discipline and low-intensity lift truck design experience
Slide 46: Low-Intensity Products
Low-Intensity Products Hours Speeds Load to max capacity Lift to max height Counterbalanced Big Truck Low-Intensity Applications Warehouse
Slide 47: Product Range – Expanding through Low-Intensity Offering
Product Range – Expanding through Low-Intensity Offering Right specification at right price for unique global customers and applications Lowest Initial Cost APPLICATION INTENSITY INITIAL COST UT/UX XT/MX FT/VX NEW! Expanding Class 1 & 5 Counterbalance and Class 3 Warehouse product lines to serve low
Slide 48: Coverage – Expanding Distribution Capacity
Coverage – Expanding Distribution Capacity Greater distribution value proposition Broader, more capable distribution coverage Increasing OEM-Dealer synergy
Slide 49: Transforming Commercial Systems
Transforming Commercial Systems: Connecting Value to Requirements Evolving Business Needs HY Transformative Solutions HY Sales Transformation Scale Targeted Industry Sales Deploy Value Selling Process Increase Direct Engagement Focus on Customer Experience Commercialize Emerging Technologies
Slide 50: Scaling Industry Sales Approach
Scaling Industry Sales Approach Tailor to industry segments Scale Targeted Industry Sales NORTH AMERICA Accelerate adoption Develop strategy playbooks
Slide 51: Targeting Industry Sales Approach
Targeting Industry Sales Approach Scale Targeted Industry Sales Dealer Sales Team Industry Sales Team National Accounts Team MARKET SHARE HY SALES APPROACH TOP BUYERS 25% OF MARKET INDUSTRY LEADERS 40% OF MARKET REST OF THE MARKET 35% OF MARKET
Slide 52: Connecting Through Transformative Selling Processes
Connecting Through Transformative Selling Processes Deploy strategy playbooks Digitally enable selling process to optimize engagement Standardize sales approach Deploy Value Selling Process
Slide 53: Delivering Increased Value Through Direct Engagement
Delivering Increased Value Through Direct Engagement Investing in selling resources Specialization in industry Direct selling Augmenting dealer selling Supported dealer selling + Increase Direct Engagement
Slide 54: Optimizing Customer Experience
Optimizing Customer Experience Investing in digital transformation to: Harness B2B buying trends through new web presence tools Create transformative unified digital experience for the customer Synch solutions seamlessly with customer and dealer systems Focus on Customer Experience
Slide 55: Commercialize Emerging Technologies
Transformative Sales System to Commercialize Emerging Technologies Leverage successful technology commercialization models Industry sales approach to tailor solutions to applications Confidence in buying, installation, user and service support Telemetry Solutions Power, Automation, Operator Assist…
Slide 56: Well Positioned to Deliver our Unique Strategic Value
Well Positioned to Deliver our Unique Strategic Value Strong Core Lift Truck Business Long-Term Growth & Operational Excellence Expanding Commercial Footprint Industry Focused Sales Systems and Digitally Enabled Customer Experience Tailored & Mobilized Emerging Technologies
Slide 57: Product and Technology
ENTER SESSION TITLE HERE… Presenter Name Product and Technology Rajiv Prasad, Chief Product and Operations Officer
Slide 58: Modular Solutions to Optimize Customer Productivity
Modular Solutions to Optimize Customer Productivity Productivity Optimal fleet size Service Right price Uptime Right solutions Operational Excellence Scalability from Base (STD) to Premium One Truck, Multiple Configurations Common Systems Premium Configuration Premium+ Configuration Standard Configu
Slide 59: 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 60: Configuring the Right Solution
Configure Solution Select Best Solution Assess Solutions Alternative Solutions Application Requirements Configuring the Right Solution Customer Application Li+ Transforming the Future
Slide 61: Modular Design Approach
Modular Design Approach Common Modules Reduce cost & complexity Common assembly, manufacturing, procurement Modular Design Approach Define module interfaces Rules for part placement Optimization to reduce cost Transforming the Future
Slide 62: Product Line Plans - Counterbalanced
Less Parts More Function Perfect Fit Solution Less Cost Product Line Plans - Counterbalanced Modular Scalable Li+ One Platform Configurable NEW PLATFORM Transforming the Future
Slide 63: Using Scalability to Drive Configurations
Using Scalability to Drive Configurations 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 System Right Cost Right Function Transforming the Fu
Slide 64: Electrification – Lower Life Cycle Cost
Electrification – Lower Life Cycle Cost OIL 80V AC LI-ION Transforming the Future
Slide 65: Integrated Lithium-Ion Truck
Integrated Lithium-Ion Truck 30KW Li-Ion Floor Weight Center of Gravity Integrated Lithium-Ion Head Clearance Entry/ Exit Leg Room Opportunity Charge Transforming the Future
Slide 66: Electrification – Integrated Truck
Electrification – Integrated Truck Hydraulic pumps moved under stairs Hydrogen tanks horizontal and above flat battery pack 2 X Fuel cell engines including cooling Modular frame mounting for hydrogen and battery pack Transforming the Future
Slide 67: 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
Slide 68: Product Line Plans – Big Trucks
Product Line Plans – Big Trucks Engines Cabs China India PRODUCT UPGRADES ELECTRIFICATION GLOBALIZATION Transforming the Future
Slide 69: Lift Truck Global Manufacturing Footprint
Lift Truck Global Manufacturing Footprint Ramos Arizpé, Mexico Greenville, NC Berea, Kentucky Obu, Japan (JV) Itu, Brazil Craigavon, N. Ireland Nijmegen, Netherlands Masate, Italy Pune, India Shanghai, China Fuyang, China (JV) Hanoi, Vietnam (JV) Cavite, Philippines (JV) … Transforming the Future
Slide 70: Technology Accelerators
ENTER SESSION TITLE HERE… Presenter Name Technology accelerators To Enhance Customer Productivity
Slide 71: Trends and Drivers
Trends Drivers URBANIZATION DEMOGRAPHICS GLOBALIZATION INNOVATION Electrification E-Commerce Global Sourcing IoT Operator Assist Systems Digitization Automation H2 … Telematics Transforming the Future
Slide 72: Technology as Productivity Accelerator
Technology as Productivity Accelerator Work: Pallets Containers Attachments p P Truck based productivity Operations based productivity Automation E-Commerce Electrification Operator Assist Systems IoT Global Sourcing … Digitization Transforming the Future Telematics
Slide 73: Operator Assist System Journey
Operator Assist System Journey Object Detection Detection Systems Location System Dynamic Stability Transforming the Future
Slide 74: Order Picking Journey
Order Picking Journey Travel Accuracy Remote Pick Assist XY Location Transforming the Future
Slide 75: Automation Journey
Automation Journey Horizontal (Balyo) Vertical (JBT) Partner Solutions Internally Developed Automation … Transforming the Future
Slide 76: Telemetry Journey
Telemetry Journey 2,500 5,600 10,800 15,100 18,700 First cellular-based OEM solution on the market (others were Wifi only) 2013 2014 2015 2016 2017 2018 2019 Over 50,000 systems sold Immersion-based training curriculum & “OnStar-like” support Started the Dealer Advisory Board & Program Improvement S
Slide 77: Electrification Journey
Electrification Journey LITHIUM-ION LEAD ACID Using motive power strength as a gateway for truck sales, share growth HYDROGEN ? Transforming the Future
Slide 78: Summary of Lift Truck
ENTER SESSION TITLE HERE… Presenter Name Summary of Lift Truck Colin Wilson, President and Chief Executive Officer of Hyster-Yale Group
Slide 79: Core Strategies and Transformational Initiatives
Core Strategies and Transformational Initiatives Provide Lowest Cost of Ownership, while Enhancing Productivity for Customers Be the Leader in the Delivery of Industry- & Customer-Focused Solutions Be the Leader in Independent Distribution Be the Leader in the Attachments Business Grow in Emerging M
Slide 80: Synergy Amplification
Synergy Amplification Transforming the Future Synergy Provide Lowest Cost of Ownership, while Enhancing Productivity for Customers Be the Leader in the Delivery of Industry- & Customer-Focused Solutions Be the Leader in Independent Distribution Grow in Emerging Markets China Sourcing Distribution En
Slide 81: Combining to Drive Operating Profit Towards 7%
Combining to Drive Operating Profit Towards 7% Transforming the Future Solid Core Business New Core Offerings 2020-2023 Connected Solutions Breakthrough Initiatives Focus on High Value Opportunities
Slide 82: Questions?
Questions? ir@hyster-yale.com Subject: Investor Day Question Transforming the Future
Slide 83: The Attachment Business
ENTER SESSION TITLE HERE… Presenter Name The ATTACHMENT BUSINESS Roberto Scotti, President and Chief Executive Officer of Bolzoni
Slide 84: Bolzoni – Solutions for Handling Materials
Bolzoni – Solutions for Handling Materials Transforming the Future
Slide 85: Bolzoni at a Glance
Bolzoni at a Glance _____________________ Notes: Excludes $2.5 million of restructuring charges. 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 sta
Slide 86: A Solid and Widespread Presence in the World
A Solid and Widespread Presence in the World Transforming the Future 20 companies 6 manufacturing plants A wide dealer network … offering quality products, services and consultancy globally
Slide 87: Bolzoni and HY, a Compelling Combination
Bolzoni and HY, a Compelling Combination Transforming the Future Bolt on acquisition Increase Bolzoni business in North America Enhance HY business in EMEA Synergy opportunities Expansion of solutions capability
Slide 88: Operated as a Separate Business Unit
Operated as a Separate Business Unit Transforming the Future Confidentiality of all competitor information Dedicated teams focused on revenue and profitability Transaction on arms-length commercial basis Develop Business with all OEM’s Growth in all industry segments Primary Supplier to HY Bolzoni G
Slide 89: Integration Progressing Well
Integration Progressing Well Transforming the Future Promote through HY distribution system Achieve procurement and logistics cost savings Products factory fitted at HY as option for integrated offer to market place Develop Bolzoni as global supplier of attachments & forks to HY Accelerate growth of
Slide 90: Enhance Strong OEM Relationships
Enhance Strong OEM Relationships Transforming the Future OEM TOP CUSTOMERS(1) OEM SALES BY REGION(1) OEM SALES BY PRODUCT LINE(1)(2) STRONG AND LONG TERM RELATIONSHIPS RESULTING IN BUSINESS GROWTH ACROSS ALL REGIONS As of 9 months end 9/30/19 Excludes cylinder sales to HY
Slide 91: Growth Plans
Growth Plans Transforming the Future Grow rapidly in North America Establish manufacturing footprint in Latin America Talent growth plan Expand high margin specialty products Industry focus Develop products for automation industry Fork expansion Develop standard products for global markets, China so
Slide 92: Plans for Rapid North American Expansion
Plans for Rapid North American Expansion Transforming the Future Sulligent location converted to Bolzoni facility - more than tripling U.S. production capacity
Slide 93: Bolzoni's Sulligent Location Investment and Opportunity
Bolzoni’s Sulligent location is a ready-to-go facility offering space, capability, leadership and experience Bolzoni – Sulligent Location Investment and Opportunity in the US Transforming the Future $2.5M $0.8M to $1.5M Severance, plant rearrangement and moving expenses Investments to complete trans
Slide 94: Bolzoni – Sulligent Location An Investment in Growth
Bolzoni – Sulligent Location An Investment in Growth Transforming the Future On-shoring production Improved IT systems Increased volumes and products New access for cylinders and other components Team stability Improved internal sales support with technical and engineering expertise Expanded service
Slide 95: A New Business Line for Bolzoni
State of the art plant specialized in manufacturing quality cylinders for forklift truck companies Expansion opportunities also in other areas such as construction and agriculture equipment, etc. Great opportunity to expand the business in North America Bolzoni – Sulligent Location A New Business Li
Slide 96: Attachment Business in Asia
Attachment Business in Asia New segment of standard attachments High quality Low price Manufactured in China for the international market Bolzoni Auramo (Wuxi) – China Transforming the Future Transforming the Future
Slide 97: Expand Asia Distribution Footprint
Expand Asia Distribution Footprint Transforming the Future Bolzoni India team Bolzoni South East Asia dealer network Bolzoni Auramo (Wuxi) China attachment manufacturing plant Independent distributor Production site Bolzoni China Production sites
Slide 98: Strengthened Latin America Sales Presence
Strengthened Latin America Sales Presence New Subsidiary in Brazil BAM LATINO AMERICA Guatemala - GUATEMALA BOLZONI SOUTH AMERICA Santiago - CILE BOLZONI SOUTH AMERICA ACESSORIOS PARA EMPILHADEIRAS LTDA Serra - BRAZIL MEXICO sales directly covered by BOLZONI Sulligent - USA Latin America sales team
Slide 99: Industry Focus
Industry Focus Transforming the Future Designed to increase our Market Share Based on developing direct business with international companies BEVERAGE WHITE GOODS 3PLs PAPER AUTOMOTIVE
Slide 100: Paper Industry: Global Presence in the Logistics Chain
Paper Industry: Global Presence in the Logistics Chain Transforming the Future Wide lift truck attachment range offering solutions for handling forest products, pulp bales and paper rolls in all applications Hyster S-120 handling Paper Rolls in a Paper Mill - USA Ship unloading with Multiple Paper R
Slide 101: AGV – A New Market Segment
AGV – A New Market Segment Transforming the Future Intelligent Attachments for Automated Guided Vehicles
Slide 102: Bolzoni Fork Business
Bolzoni Fork Business Transforming the Future Bolzoni (Hebei) – China Smart Fork solutions Fork Business Growth Fork Business Growth Est. Q4
Slide 103: Bolzoni Core Strategies for Growth
Bolzoni Core Strategies for Growth Transforming the Future North American Expansion Enhance OEM Business Far East Expansion AGV Market Presence Expansion Industry Focus Fork Business Growth
Slide 104: The Fuel Cell Business
ENTER SESSION TITLE HERE… Presenter Name The Fuel Cell Business Lucien Robroek, Chief Executive Officer of Nuvera Fuel Cells, LLC
Slide 105: Controlling the Power of Hydrogen
Controlling the Power of Hydrogen Membrane 4- 4+ electrons protons Electricity 4- 4+ 4- 4+ electrons protons Water Hydrogen Oxygen Heat 4- 4+ Transforming the Future
Slide 106: Building a Fuel Cell Stack
Building a Fuel Cell Stack Electricity Water Hydrogen Air cell cell cell cell cell cell cell Transforming the Future
Slide 107: Fuel Cell Powered Electric Mobility
Fuel Cell Powered Electric Mobility Small engines Materials handling Industrial machines Buses, utility trucks Automotive engines Transforming the Future
Slide 108: 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 Other regions have activity but small volume Source: FCEV Market Report 2025, GMI Inc. 2019. Transforming the Future
Slide 109: Market Trends / Activity
Market Trends / Activity Europe City & Country bans on ICE Large push for public facing H2 stations Increasing focus on Bus (12 meter) Current activity focused on Auto, Materials Handling North America Currently dominated by Materials Handling (>25k units) Auto gaining traction: Toyota, Hyundai, Hon
Slide 110: Fuel Cell Buzz around the world
Fuel Cell Buzz around the world …World Economic Council, June 11, 2019 Hydrogen isn't the fuel of the future. It's already here. …Thomas Edison …Jeff Weiner …2018 KPMG Automotive Survey …Matt Canavan, Minister for Resources and Northern Australia July 1, 2019 77% of automotive executives believe tha
Slide 111: What it Takes to Win
What it Takes to Win Good science/technology (design, system architecture, process control) Industrialized components and production Application knowledge and capabilities Market engagement Institutional stability Transforming the Future
Slide 112: Nuvera at a Glance
Nuvera at a Glance Technology History 75+ engineers 8th generation of Fuel Cell concept 20 years of Fuel Cell demo vehicles Application Portfolio Electric mobility Highly diverse applications High efficiency Fuel Cell engine Intellectual Property 650+ live patents Fuel Cell core tech Next Generation
Slide 113: Nuvera Advanced Technology
Nuvera Advanced Technology MEA GDL Flow-Field Separator Plate MEA GDL Flow-Field / Separator traditional open Source: Nuvera R&D calculations, 2018-2019. Transforming the Future
Slide 114: Industrialized Product
Industrialized Product Uncoated metal plates Superior resistance to shock and vibration Application-flexible architecture Cost-effective manufacture and rebuilds Active supplier development Scale-up and robustness of component chain Transforming the Future
Slide 115: Application knowledge and capabilities
Application knowledge and capabilities Transforming the Future
Slide 116: Market Engagement
Market Engagement Automotive Delivery trucks SUVs Materials Handling Battery Box Replacements Integrated fuel cell engines Buses/Trucks 8-10 meter bus 12+meter bus Long distance trucks Heavy Industry Port equipment Excavator OEMs System suppliers Transforming the Future
Slide 117: Institutional Stability
Institutional Stability Leveraging HY Strengths HY Lift Truck business - solid, launching customer for BBR* business Balancing product portfolio Aftermarket support and parts service Global supply chain and production Well-paced roadmap to grow as OEM Transforming the Future * Battery box replacemen
Slide 118: Electric Vehicle Exponential Growth
Electric Vehicle Exponential Growth Source: Center of Automotive Management Sources indicate the new electric vehicles share of the new vehicle market will increase significantly over the next 10 years Transforming the Future North America Europe China 800% Increase 500% Increase 300% Increase 2020
Slide 119: Building Nuvera Product Portfolio
Building Nuvera Product Portfolio Automotive Lift Trucks Small Engines Industrial Fleets, HD Potential* Annual Volume Efficient Stack Performance Engine Integration Reliable Power Modules 100,000+ 10,000 – 50,000 3,000-10,000 *Company Estimates Customer/Market: Nuvera Unique Selling Point: Transform
Slide 120: Building Nuvera Product Portfolio
Building Nuvera Product Portfolio Source: Center of Automotive Management Europe China North America - + + + + + + + + + - - + + + + + Transforming the Future Automotive Lift Trucks; Small Engines Industrial Fleets, HD
Slide 121: Focus on Fuel Cells in China
Focus on Fuel Cells in China Source: Nuvera China customers information, 2019. Transforming the Future Nuvera forecast on China : Volume driver in Fuel Cell vehicles Basis for cost reduction
Slide 122: Nuvera Entering Chinese Bus Market
Nuvera Entering Chinese Bus Market Transforming the Future Partnering with ZRHE (Runfeng) Nuvera 45kW Fuel Cell engines certified for China; vehicle testing in progress Discussion with various bus OEMs Building engine production capacity
Slide 123: Preparing for Industrial Fleets and Heavy Duty
Preparing for Industrial Fleets and Heavy Duty Transforming the Future Leveraging Hyster CH prototypes Working with US/EU OEMs of mobile machinery First applications public in 2020 Demo programs in Heavy Industry 123
Slide 124: Preparing to support volume growth
Preparing to support volume growth Source: Nuvera Forecasts: subject to change. Transforming the Future Source: Nuvera China customers information, 2019.
Slide 125: Preparing to Support Volume Growth
Automated assembly and control equipment Unique production capacity build-up in US and China 2019 increasing capacity and quality control Production development is key Preparing to Support Volume Growth Transforming the Future
Slide 126: Nuvera – Fuyang Location An Investment in Growth
Nuvera – Fuyang Location An Investment in Growth Transforming the Future Scalable stack production in the area of consumption Spare parts support Development of product and production Option to assemble and test engines Improved sales support with technical and engineering expertise Expanded service
Slide 127: Preparing to Support Volume Growth
Preparing to Support Volume Growth Billerica Plant Fuyang Plant Phase 1 Fuyang Plant Phase 2 Source: Nuvera China customers information, 2019. Transforming the Future
Slide 128: Nuvera Fuel Cells: Transforming Motive Power
Nuvera Fuel Cells: Transforming Motive Power Engines based on fuel cells are the way forward to electrification Global use in mobile machinery and vehicles will further accelerate Nuvera’s technology and products are well positioned Right launching partners in the right global areas Completing produ
Slide 129: Summary of Attachments and Fuel Cells
ENTER SESSION TITLE HERE… Presenter Name Summary of Attachments and Fuel Cells Colin Wilson, President and Chief Executive Officer of Hyster-Yale Group
Slide 130: Core Strategies and Transformational Initiatives
Core Strategies and Transformational Initiatives Provide Lowest Cost of Ownership, while Enhancing Productivity for Customers Be the Leader in the Delivery of Industry- & Customer-Focused Solutions Be the Leader in Independent Distribution Be the Leader in the Attachments Business Grow in Emerging M
Slide 131: Bolzoni Acquisition Has Been Successful
Bolzoni Acquistion Has Been Successful Transforming the Future Expansion of solutions capability Bolt on acquisition Increase Bolzoni business in North America Enhance HY business in EMEA Core Business Tracking to Achieve Target Returns
Slide 132: Nuvera is a Transformational Opportunity
Nuvera is a Transformational Opportunity Transforming the Future Market Leading Technology Strong and Growing Demand Successful Early Stage Adoption Entering Mass Commercialization Phase Expected Transformational Impact on Hyster-Yale Future Profitability
Slide 133: Financial Overview
ENTER SESSION TITLE HERE… Presenter Name Financial Overview Ken Schilling, Senior Vice President and Chief Financial Officer of Hyster-Yale Materials Handling and Hyster-Yale Group
Slide 134: Key Drivers
Global lift truck markets, while declining, are still at historically robust levels Strategic focus on optimized lift truck customer experience, along with technology enablers, commercial fuel cell offerings and expanded global coverage in attachments Strong pipeline of new product introductions in
Slide 135: Results for YTD Q3 2019 Consolidated vs. YTD Q3 2018
Results for YTD Q3 2019 Consolidated vs. YTD Q3 2018 Hyster-Yale’s business units are at different stages, which makes the variance best understood by individual business unit ($ in millions) _____________________ These entities are presented on a stand-alone basis, and as such, do not sum to the co
Slide 136: Lift Truck Summary Financial Results
Lift Truck Summary Financial Results _____________________ 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 158. Trends Markets off
Slide 137: Significant 2018 and 2019 Trends
Significant 2018 and 2019 Trends Transforming the Future Steel Tariffs/Prices China Tariffs BT Supplier Constraints Price Volume CB Supplier Constraints Program Spend Revenue in millions Revenue and Operating Profit Operating Profit Margin % Operating Profit in millions $ $ $ $ $ $ $ $ $ $ $
Slide 138: Bolzoni Summary
(In thousands) Bolzoni Summary Trends Bolzoni adjusting to reduced EMEA markets N. America strategic program milestones reached driving one time restructuring costs Q4 2019 Outlook Q4 expected to be tempered by EMEA market decline Full quarter of Sulligent production for N. America Worldwide YTD 9/3
Slide 139: Nuvera Summary
Nuvera Summary Trends Growth opportunities driven by tax credits and subsidies in China and US 45kW Fuel Cell engine introduction Reducing product cost Q4 2019 Outlook Key milestones consistent with tightly focused scope on fuel cell stacks and engines Financial Results ($ in millions) _____________
Slide 140: Consolidated Key Financial Metrics
Consolidated Key Financial Metrics _____________________ (1) Working Capital is defined as Accounts Receivable plus Inventory less Accounts Payable. (2) Cash Flow before Financing is defined as cash from operating activities less cash from investing activities for the respective period. (3) Debt to
Slide 141: Hyster-Yale Use of Cash Priorities
Interconnected Circular Diagram with 5 Key Points Return Cash to Stockholders Investments in Share Gain Programs Investments in Adjacent or Complementary Businesses Investments in Fuel Cell Business Investments in Lift Truck & Attachments Businesses Hyster-Yale Use of Cash Priorities Expense and Cap
Slide 142: Key Capital Expenditures and R&D
Key Capital Expenditures and R&D Capital expenditures and R&D directed to support key HY lift truck product initiatives along with development of Bolzoni and Nuvera products and facilities (total $ in millions) * Estimated Capex R&D Transforming the Future (total $ in millions)
Slide 143: Earnings Perspective - Lift Truck Business
Earnings Perspective - Lift Truck Business FY 2019 2020 Outlook LT Perspective Unit and Parts Volume Overall global lift truck market expected to decline modestly from 2018 Continued softening of global lift truck markets with positive impact of new products on share Overall global lift truck market
Slide 144: Earnings Perspective - Bolzoni Attachment Business
Earnings Perspective - Bolzoni Attachment Business FY 2019 2020 Outlook LT Perspective Revenues Revenues expected to decrease modestly from 2018 as a result of weakened EMEA market and currency Revenues expected to improve modestly over 2019 with impact of reduced EMEA market more than offset by sha
Slide 145: Earnings Perspective - Nuvera Fuel Cell Business
Earnings Perspective - Nuvera Fuel Cell Business FY 2019 2020 Outlook LT Perspective Revenues Revenues expected to decrease due to prior year revenue recognition change made in Q4 2018 Expect increasing revenues from commercial sales of new 45kW fuel cell engine and Lift Truck demand for additional
Slide 146: Lift Truck Business Target Economics
Lift Truck Business Target Economics Goal and Gap to Target Achieve 7% operating profit margin target over the medium term Achieve ROTCE > 20% YTD 9/30/19 Gap to Target Economics Actual Lift Truck Operating Profit Margin % 2.9% Margin Variances – including impact of Tariffs 2.0% Volume Variances* Ma
Slide 147: HY Lift Truck Incremental Volume Leverage
Sales $137m Gross Profit $32m Operating Expenses $12m Operating Profit $20m Incremental Operating Profit % 14.0% HY Lift Truck Incremental Volume Leverage Incremental Units Produced +5,000 trucks As we make progress toward the 122,000 unit production levels, HY Lift Truck will generate significant i
Slide 148: Target Economics
Target Economics HY Lift Truck Target is to move from significant loss to break-even in late 2020 then on towards significant profitability in the long term Importance of volume growth to reaching target operating margin Expect to exceed 7% operating profit target as programs mature Transforming the
Slide 149: Transforming Results
TITLE HERE… Presenter Name Transforming results Alfred Rankin, Jr., Chairman, President and CEO of Hyster-Yale Materials Handling Chairman of Hyster-Yale Group
Slide 150: Core Strategies and Transformational Initiatives
Core Strategies and Transformational Initiatives Provide Lowest Cost of Ownership, while Enhancing Productivity for Customers Be the Leader in the Delivery of Industry- & Customer-Focused Solutions Be the Leader in Independent Distribution Be the Leader in the Attachments Business Grow in Emerging M
Slide 151: 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 152: An Alternative Flywheel
An Alternative Flywheel Passion About products and solutions Excellent At distribution Drives Economic Engine Economies of Scale Develop right products at right cost to provide LCO & enhance customer productivity Be a leader in industry and customer solutions Build increased distribution strength In
Slide 153: Our Financial Objectives Over the Next Few Years
Our Financial Objectives Over the Next Few Years ROTCE Operating profit 7% >20% Transforming the Future Achieved by reaching target volumes and margins with required SG&A
Slide 154: Valuation Approach Needs to Vary By Business
Valuation Approach Needs to Vary By Business Lift Truck and Attachment Businesses Fuel Cell Business Board Oversight as Separate Businesses Incentives Tied to Individual Businesses Strong Operating Cash Generation Market Leading Products and Position Mature Cyclical Industry Value using Traditional
Slide 155: An Objective of Significant Profitability Enhancement
An Objective of Significant Profitability Enhancement HYSTER-YALE Solid Balance Sheet Commitment to Shareholder Return Leading Products & Market Position Strategies to Gain Share in all Segments & Markets Solid Return on Capital Investment & Growth in Game Changing Technologies Customer Focused & So
Slide 156: Questions?
Questions? ir@hyster-yale.com Subject: Investor Day Question Transforming the Future
Slide 157: Appendix
ENTER SESSION TITLE HERE… Presenter Name APPENDIX
Slide 158: Non-GAAP Disclosure
158 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-Y
Slide 159: 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 160: 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 161: 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 162: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation Consolidated ($ in millions) Year Ended December 31 Qtr. YTD Trailing 12 Months 2014 2015 2016 2017 2018 9/30/2019 9/30/2019 9/30/2019 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operating activities $100.0 $89.4 $(48.9) $164.7
Slide 163: Biography Alfred M. Rankin, Jr.
Biography Transforming the Future Alfred M. Rankin, Jr. Chairman, President and Chief Executive Officer of Hyster-Yale Materials Handling Chairman, Hyster-Yale Group Mr. Rankin became Chairman, President and Chief Executive Officer of Hyster-Yale Materials Handling, Inc. in September 2012 when Hyste
Slide 164: Biography Colin Wilson
Biography Transforming the Future Colin Wilson President and Chief Executive Officer, Hyster-Yale Group Colin Wilson became President and Chief Executive Officer of Hyster-Yale Group in September 2014 and is charged with providing the strategic vision and global leadership that keeps Hyster-Yale Gro
Slide 165: Rajiv K. Prasad
Rajiv K. Prasad Chief Product and Operations Officer As Chief Product and Operations Officer, Mr. Prasad guides all aspects of the Hyster-Yale Group operation. His ultimate responsibility is to ensure that products and innovations along with sales and marketing processes introduced by Hyster-Yale Gr
Slide 166: Biography Anthony J. Salgado
Biography Transforming the Future Anthony J. Salgado Chief Operating Officer Mr. Salgado became Chief Operating Officer of Hyster-Yale Group in July 2019 and is responsible for performance of the company’s global lift truck business operations and interests across the Americas, EMEA, Asia-Pacific, I
Slide 167: David LeBlanc
David LeBlanc Vice President, Strategy, Planning, and Business Development Mr. LeBlanc joined Hyster-Yale Group in 2018 as Vice President, Strategy, Planning, and Business Development. In this role he oversees the company’s financial planning and analysis activities, which include the development of
Slide 168: Roberto Scotti
Roberto Scotti President and Chief Executive Officer of Bolzoni S.p.A. Roberto Scotti obtained his high school diploma in mechanical engineering in 1970. From 1970 to 1973 he attended the faculty of Mechanical Engineering at the University of Milan. From 1973 to 1979 Mr. Scotti was Sales Manager for
Slide 169: Lucien Robroek
Lucien Robroek Chief Executive Officer of Nuvera Fuel Cells Mr. Robroek joined Nuvera as Chief Executive Officer in November 2018. His involvement with Nuvera started in 2015 when he worked as Vice President Big Trucks for Hyster-Yale Group, Nuvera’s parent company. In addition to his 12 years with
Slide 170: Kenneth C. Schilling
Kenneth C. Schilling Senior Vice President, Chief Financial Officer Mr. Schilling oversees public financial reporting, accounting, tax compliance and strategies, treasury activities and investor relations at Hyster-Yale. Currently, Mr. Schilling is the Vice President and Chief Financial Officer of H
Slide 171: Christina Kmetko, CPA, IRC Investor Relations
Christina Kmetko, CPA, IRC Investor Relations Ms. Kmetko is the President and Owner of Evergreen Consulting & Associates, L.L.C., formed in January 2010, which provides investor relations support to Hyster-Yale Materials Handling, Inc. and NACCO Industries, Inc. (Hyster-Yale’s previous parent compan
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