Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Investor Day (May 2021)
115 slides from Hyster-yale's investor day presentation, May 25, 2021
Slide 1: Transforming Hyster-Yale: An Industry Approach
INVESTOR DAY May 25, 2021 TRANSFORMING HYSTER-YALE AN INDUSTRY APPROACH
Slide 2: Welcome & Introduction
Welcome & Introduction Christina Kmetko Investor Relations
Slide 3: Safe Harbor Statement & Disclosure
Safe Harbor Statement & Disclosure This presentation includes forward-looking statements 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). The forward-
Slide 4: Today's Presenters
Today’s Presenters 10:00 am Welcome Christina Kmetko 10:05 am Strategic Overview Alfred Rankin, Jr. Products and 10:20 am Rajiv Prasad Operations Commercial ALFRED M. RANKIN, JR RAJIV PRASAD 10:35 am Tony Salgado TONY SALGADO Operations Chairman and CEO President Chief Operating Officer 10:55 am Vid
Slide 5: Strategic Overview
Strategic Overview Alfred Rankin, Jr. Chairman and CEO of Hyster-Yale Materials Handling, Inc. Chairman of Hyster-Yale Group
Slide 6: 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 n CEO n P&L and balance sheet n Tai
Slide 7: 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 LTM 3/31/2021 Lift Truck Bolzoni Nuvera truck manufacturer offering a broad array of solutions aimed at Revenue $2,616.4 $275.3 $2.5
Slide 8: 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 Lift Truck Bolzoni NUVERA • Focus on increasing sales near term Operating Profit ROTCE • Focus on reducing 7% >20% losses and moving to profitability over time Transforming Hys
Slide 9: 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 six 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 Be the Leader in
Slide 10: Hyster-Yale Strategic Projects Expected To Be Transformative
Hyster-Yale Strategic Projects Expected To Be Transformative… Priority Projects Our Core Lift Truck Business Our Attachments Business Our Fuel Cell Business Product Operations • One Company, 3 Brands • Sales of Certified E45kW and E60kW • Modular Products • North America Expansion Engines • Plant Fo
Slide 11: Strategic Projects Gaining Traction
Strategic Projects Gaining Traction Modular & Industry Best Solution Tailored Solutions Selling System Industry Segment Specific Scalable Platforms Offering and Capturing Economic Mass Customization Greater Value Added Transforming Hyster-Yale 11
Slide 12: 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, but with a ver
Slide 13: Timing of Achieving Objectives
Timing of Achieving Objectives Lift Truck and Bolzoni expected to meet targets WITHIN 5 YEARS Focus is on accelerating the impact of projects and as a result, achievement of the businesses’ long-term objectives NEXT 2-3 Nuvera aims to reduce losses over the next 2 YEARS years and achieve breakeven i
Slide 14: 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 • Strong Operating Cash Generation Fuel Cell • Val
Slide 15: Lift Truck Business
Lift Truck Business Rajiv Prasad President of Hyster-Yale Materials Handling, Inc. President and Chief Executive Officer of Hyster-Yale Group
Slide 16: Strong long-term market foundation provided support through COVID-era volatility
Strong long-term market foundation provided support through recent COVID-era volatility Technology-driven growth supported by stable industry and company Global Market Quarterly Booking Trend 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - 2002 Q1 2021 Q1 Transforming Hyster-Yale 16
Slide 17: COVID both a Challenge and Accelerator for our company and industry
COVID both a Challenge and Accelerator for our company and industry Coming out of COVID stronger and better positioned for the future Drive for Clean Energy accelerates Motive Technology Supports Worker Safety Power Solutions Transforming Hyster-Yale 17
Slide 18: Core Strategy Mobilization Maturing
Core Strategy Mobilization Maturing Steadily expanding value added and capture Value proposition growing Highly tailored & economic Unique solution selling in scope & precision solutions system in place Telematics Modular Industry Focus Operator Assist Systems Scalable Directly driving the Clean Ene
Slide 19: Products and Operations
Products and Operations iy HYSTER-YALE
Slide 20: Growth Driven by Strategic Projects
Growth Driven by Strategic Projects We are in an industry tied to GDP, with rapidly evolving needs The strategic projects cohesively deploy our lift truck strategies to drive profitable growth MANUFACTURING CUSTOMER NEEDS SUPPLY CHAIN COMMERCIAL TECHNOLOGY OPERATIONS INDUSTRY & PRODUCTS G R O W T H
Slide 21: 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 22: Modular and Scalable Platforms
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. Transforming Hyster-Yale 22
Slide 23: Low-Intensity Products
Low-Intensity Products Some customers Low-intensity applications include: need lift trucks that Rental n Retail n Light manufacturing n Support functions n have low-intensity Garden centers n Agriculture n Light logistics use A simple and robust product at a lower cost is the right solution for low
Slide 24: Electrification Products
Electrification Products Electrifying traditional ICE products using new energy and power solutions to meet the demand for increasing productivity and sustainability needs 2-3T Integrated Li-ion Electric Truck 8T Integrated Li-ion 16T Integrated Li-ion Electric Truck Electric Big Truck Transforming
Slide 25: Fuel Cell Products
Fuel Cell Products Fuel cells are ideal for high-intensity, multi-shift operations that need an electric solution to meet Counterbalanced Truck with Fuel Cell large energy demand with high availability Battery Box Replacement (BBR) 52T Integrated Fuel Cells Laden Container Handler Transforming Hyste
Slide 26: Telemetry Solutions
Telemetry Solutions 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 Transforming Hyster-Yale 26
Slide 27: Operator Assist Systems
Operator Assist Systems Technologically Advanced Dynamic Stability advanced features designed to help reinforce safe and Proximity Detection productive truck operation that help Object Detection customers meet operational challenges Real Time Location RTLS System Transforming Hyster-Yale 27
Slide 28: Automation Products
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 Transforming Hyster-
Slide 29: Manufacturing Optimization
Manufacturing Optimization Hyster-Yale has global manufacturing capability to respond to customers needs while optimizing our footprint by improving scale and implementing lean processes Craigavon, N Ireland Nijmegen, Netherlands Berea, KY Masate, Italy Fuyang, China Obu, Japan Greenville, NC Shangh
Slide 30: Supply Chain
Supply Chain Supply chain uses the ‘center of gravity O P T I M I Z E D T O TA L C O S T suppliers’ to maximize scale to achieve low component and material costs while improving geographic and economic resiliency BUILD RESILIENCY BUILD FLEXIBILITY B U I L D S U P P LY B A S E SUPPLIER SELECTION Tran
Slide 31: HY Leading in Industry and Customer Solutions
HY Leading in Industry and Customer Solutions Transforming Hyster-Yale 31
Slide 32: Commercial Transformation - An Industry Approach
Commercial Transformation - An Industry Approach Tony Salgado Chief Operating Officer at Hyster-Yale Group
Slide 33: Macro trends are affecting our customers and their businesses
Macro trends are affecting our customers and their businesses LABOR WORKPLACE E L E C T R I F I C AT I O N INTERNET OF SAFETY THINGS (IOT) T E L E M AT I C S D I G I T I Z AT I O N GLOBAL E-COMMERCE SOURCING Transforming Hyster-Yale 33
Slide 34: Objective is to Transform HY's Commercial Competitiveness
Objective is to Transform HY’s Commercial Competitiveness in an Evolving Market Hyster-Yale Evolving Sales Transformation Customer’s HY Industry Industry-Focused Participation Focused Advanced Selling 360 Degree Aftersales Highly Connected Transformative Requirements Approach Sales Management System
Slide 35: Five Maturing Strategic Commercial Projects Driving Transformation
Five Maturing Strategic Commercial Projects Driving Transformation Linking commercial H Y CO M M E RC I A L L EA D E RS H I P operations initiatives with FIND CHOOSE STAY WITH THE RIGHT PARTNER THE RIGHT PARTNER THE RIGHT PARTNER broader HY strategy, …earlier in the Buying Cycle. …when making a Purc
Slide 36: Industry-Focused Specialization Aims to Create Differentiated Value
Industry-Focused Specialization Aims to Create Differentiated Value Achieve breakthrough market share through sales and service specialization Sales system delivers highly • Industry segment blueprinting competitive customer focus in each • Focused commercial playbooks unique industry segment • 360°
Slide 37: Industry-Focused Approach through Product Modularity & Scalability
Industry-Focused Approach Planned to be Realized through Product Modularity & Scalability Increasing competitiveness by Industry segments through product specification scalability CURRENT NEW New Low Intensity Product Line FT/VX Incremental XT/MX UT/UX Scalability LOW APPLICATION INTENSITY HIGH FUTU
Slide 38: Industry-Focused Approach Enhanced Through Emerging Technologies
Industry-Focused Approach Expected to be Enhanced Through Emerging Technologies Maturing commercial processes designed to connect customers with Emerging Technology solutions to solve their toughest problems MOTIVE ROBOTICS T E L E M AT I C S AT TA C H M E N T S CUSTOM POWER & & FLEET LIFT TRUCK O P
Slide 39: 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 40: Evolving Sales Management Systems Designed to Expand Market Participation
Evolving Sales Management Systems Designed to Expand Market Participation Greatly expanding participation through 60% OF MARKET UNIT TOP BUYERS INDUSTRY ACCOUNTS location-focused VOLUME sales strategy, and Taking a Greater Lead in the Sales Process buyer-focused sales LARGER connectivity INDUSTRY AC
Slide 41: HY Impact Selling Systems Designed to Optimize Sales Engagement
HY Impact Selling Systems Designed to Optimize Sales Engagement Effective engagement with Deploying best- customer stakeholders practice selling systems to partner Leverage specialization to with customer solve problems decision makers to solve their Standardized through toughest problems certificat
Slide 42: 360° Aftersales Solutions Designed to Deliver Enhanced Customer Value
360° Aftersales Solutions Designed to Deliver Enhanced Customer Value Developing a Empowered Managed Variable Material Handling service model to Self-Service Service Ownership as a Service deliver industry focused aftersales AWARENESS INTEREST CONSIDERATION PURCHASE POST PURCHASE REPLACEMENT custome
Slide 43: Highly Connected Customer Experience Intended to Increase Customer Loyalty
Highly Connected Customer Experience Intended to Increase Customer Loyalty Enhanced customer experience through deployment of complementary end-to-end personal and digital connectivity …from lead generation, to marketing, to sales process, to aftersales Systems & Process Lead Generation & Enhanced W
Slide 44: Early Results Confirm Effectiveness of HY Commercial Strategy Direction
Early Results Confirm Effectiveness of HY Commercial Strategy Direction Maturing of system-wide new and enhanced commercial operations delivers growth in participation and competitiveness Lead Generation Growth Sales Activity Growth Sales Pipeline Growth Bookings Growth Bookings up sharply from Q2 2
Slide 45: Commercial Transformation Designed to Deliver Sustainable Revenue Growth
Commercial Transformation Designed to Deliver Sustainable Revenue Growth Customer’s HY commercial strategy, anchored in Industry Approach and HY Industry Sales Operational Excellence, will create a robust market Transformative Requirements and differentiation moving forward Solutions Toughest Proble
Slide 46: Lift Truck Summary – FY 2020 vs. FY 2019
Lift Truck Summary – FY 2020 vs. FY 2019 Financial Results HY Lift Truck HY Lift Truck 14.4% COVID-driven Variance ($ in millions, except backlog) FY 2020 FY 2019 Revenue reduction in Revenues $2,672.9 $3,124.2 ($451.3) unit, parts and attachments offset by Gross Profit $424.8 $495.0 ($70.2) price O
Slide 47: Lift Truck Summary – Q1 2021 vs. Q1 2020
Lift Truck Summary – Q1 2021 vs. Q1 2020 Unit production restricted by severe Financial Results HY Lift Truck HY Lift Truck supplier and freight logistics Variance ($ in millions, except backlog) Q1 2021 Q1 2020 constraints Revenues $690.9 $747.4 ($56.5) Lower volume (mainly Americas) Gross Profit $
Slide 48: Bolzoni
BOLZONI Roberto Scotti President and Chief Executive Officer of Bolzoni S.p.A.
Slide 49: Global Leader Providing Strong Returns and Step Change Productivity
Global Leader Providing Strong Returns and Step Change Productivity to HY’s Industry Solutions Global Center OEMs Beverage Attachments GERMANY Salzgitter Piacenza ITALY Attachments/Cylinders for Americas Flexible to serve local markets Sulligent – Alabama BRAZIL Serra/ES USA Leading Paper Attachment
Slide 50: Strong Base and Opportunities to Leverage Materials Handling Solutions
Strong Base and Opportunities to Leverage Materials Handling Solutions One of the world’s leading PORTFOLIO PRODUCTS manufacturers of lift truck attachments, forks and lift tables, of the Bolzoni Group Lift tables 3% cylinders and transmissions with an extensive product range Transmissions 30% Attac
Slide 51: Commercial Footprint Mobilized by Global Centers of Excellence
Commercial Footprint Mobilized by Global Centers of Excellence 18 5 3000 COMPANIES CONTINENTS PRODUCTS 1300 7 EMPLOYEES PRODUCT PLANTS NETWORK BRANCHES & INDEPENDENT DEALERS Transforming Hyster-Yale 51
Slide 52: Core strategies: Multiple Dimensions of Growth Opportunities
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 TARGET N
Slide 53: Bolzoni Transformation: Increasing Commercial Agilities
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 54: 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 55: 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 56: HY / Bolzoni Strategic Synergies
HY / Bolzoni Strategic Synergies China & Asia- AGV HY in Order Pacific Americas Picker EMEA HY Major Accounts Support New HY A&N EMEA Series Pricelist One-Face Integration Project Transforming Hyster-Yale 56
Slide 57: Strong OEM Foundation
Strong OEM Foundation OEM OEM OEM TOP CUSTOMERS(1)(2) SALES BY REGION(1)(2) SALES BY PRODUCT LINE(1)(2) OtherOEM HOOK-ON SIDE OEM5 5% SHIFTERS 5% 3% JAPIC 9% OEM4 FORKS OEM1 13% 27% 32% AMERICA EUROPE INTEGRAL SIDE OEM3 33% 58% SHIFTERS & 17% CARRIAGES OEM2 53% 30% ATTACHMENTS 15% (1) For the 12 mon
Slide 58: Technology-Driven Solutions – The 4.0 Challenge
Technology-Driven Solutions – The 4.0 Challenge Cooperating with AGV producers to develop, design and manufacture special handling attachments for AGV applications Hydraulic and electric driven products for specific industry applications - Paper - Tobacco - Food and Beverage - Automotive - Home appl
Slide 59: Industry-Specific Solutions – Target New Customer Strategy
Industry-Specific Solutions – Target New Customer Strategy WHITE GOODS BEVERAGE P U L P & PA P E R 3PLS / AUTOMOTIVE A unique extensive strategy – applied • Strong sales team worldwide globally and customized locally • Direct product promotion approach with international companies Focused on strateg
Slide 60: Market Growth and End User Approach
Market Growth and End User Approach Beverage Home Appliances Generate demand of Multi Pallet Handler within Generate demand of carton clamps in home appliance beverage manufacturers, 3PL and distributors manufacturers, e-commerce platforms and 3PL Transforming Hyster-Yale 60
Slide 61: Market Growth and End User Approach
Market Growth and End User Approach Pulp & Paper Automotive & 3PL Target paper mills and follow the logistic chain to Target Automotive and 3PL customers and end users and find new leads and develop dedicated activities lift truck OEMs to attract new customers Transforming Hyster-Yale 61
Slide 62: Silver Line – A Unique Product Offering
Silver Line – A Unique Product Offering Fully leverage global cost position and high performance • Unique attachments manufacturer offering two lines: Premium Line – Silver Line • Silver Line range designed in Germany, manufactured in Wuxi to address all markets • Stock centralization in Europe and
Slide 63: Rental and Second-Hand Attachment Sales
Rental and Second-Hand Attachment Sales New opportunities in rental, used products and service expected to provide competitive advantage and improved profitability Building this business by: • Determining estimated rental market size • Establishing a dedicated rental and service manager • Supporting
Slide 64: Bolzoni Summary – FY 2020 vs. FY 2019
Bolzoni Summary – FY 2020 vs. FY 2019 Bolzoni Bolzoni Trends Financial Results Variance • 18% COVID-driven volume reduction ($ in millions) FY 2020 FY 2019 Revenues: Volume/Revenue Core Business $198.4 $239.6 ($41.2) • $2.1M positive currency on net sales Legacy Business $85.3 $105.8 ($20.5) • Produ
Slide 65: Bolzoni Summary – Q1 2021 vs. Q1 2020
Bolzoni Summary – Q1 2021 vs. Q1 2020 Financial Results Bolzoni Bolzoni Trends/Volume/Revenue Variance ($ in millions) Q1 2021 Q1 2020 • Pandemic-related global economic Revenues decline and fewer shipments at Sulligent Core Business $56.9 $56.5 $0.4 plant from supply chain constraints Legacy Busine
Slide 66: Nuvera Fuel Cells, LLC
Nuvera Fuel Cells, LLC Lucien M. J. Robroek President and Chief Executive Officer of Nuvera Fuel Cells
Slide 67: Fuel Cell Engines as a rapidly expanding solution to 'Green Mobility'
Fuel Cell Engines as a rapidly expanding solution to ‘Green Mobility’ Fuel Cell Engine Market: We believe inflection point is now OTHER HEAVY DUTY VEHICLES $237mm 2020-2030 CAGR NM 2030 MATERIAL HANDLING $394mm Total Consolidated 2020-2030 CAGR 12.6% Addressable Market COMMERCIAL TRANSPORT 2020-2030
Slide 68: Nuvera targets the most compelling hydrogen applications
Fuel Cell Engines as a rapidly expanding solution to ‘Green Mobility’ Nuvera targets the most Hydrogen in mobile equipment Nuvera compelling hydrogen ++ applications versus fully battery power • Emission free • Heavy duty operations • No charging required -- versus combustion engines ++ Source: Inte
Slide 69: Technology: Optimized Fuel Cell Engine Design
Technology: Optimized Fuel Cell Engine Design Nuvera FC Engines are designed to make the electrical vehicle a success Unique engine control Efficient and reliable Vehicle integration Optimal battery and FC engine life Telemetry Effective remote monitoring of FC engine Transforming Hyster-Yale 69
Slide 70: Technology: Stack as Core of the Fuel Cell Engine
Technology: Stack as Core of the Fuel Cell Engine Nuvera uses unique stack technology High power density Compact design with high performance High fuel efficiency Longer duty cycle - same amount of hydrogen Broad market application Modular and most scalable in the market Transforming Hyster-Yale 70
Slide 71: Technology: Stack/Engine Longevity is Key
Technology: Stack/Engine Longevity is Key Installed base has provided substantial learnings to increase durability • Component durability • Factory and supplier quality control • Extended stack and engine life Transforming Hyster-Yale 71
Slide 72: Product Platforms: Comprehensive approach to hydrogen mobility market
Product Platforms: Comprehensive approach to hydrogen mobility market Nuvera makes FC technology WORK for customers Engines E-series: E45 and E60 Stacks / ‘Complete’ engine: easy Subsystems to integrate For OEMs that understand For heavy duty stack deployment equipment / vehicles Broadly applicable:
Slide 73: Product Platforms: Integrated service / support to customers
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 NUVERA Tra
Slide 74: Product Platforms: examples
Product Platforms: examples Dannar® Mobile Power Station: FC concept development Hyster Toploader: Demo unit KingLong bus: Certification Off-road equipment n Different phases of the Application Trucks n Buses n customer journey Focus Delivery Vans & Commercial Vehicles n Capacity Terminal Tractors:
Slide 75: Product Platforms: Opportunities in Terminal Tractors / Shunt Trucks
Product Platforms: Opportunities in Terminal Tractors / Shunt Trucks Joining forces towards zero- emission in: Large Warehouses Container Ports Distribution Transforming Hyster-Yale 75
Slide 76: Manufacturing Strategy
Manufacturing Strategy Lean assembly for volume build Series production capability realized of engines Automation of stack building Transforming Hyster-Yale 76
Slide 77: Manufacturing Strategy
Manufacturing Strategy Installed production solutions are scalable in volume and deployable close to market of consumption Transforming Hyster-Yale 77
Slide 78: Supply Chain
Supply Chain Using the best possible suppliers available Continuous component evaluation Vertical integration of major stack components Protect Intellectual Property Transforming Hyster-Yale 78
Slide 79: Commercialization: Global Business Development
Commercialization: Global Business Development Nuvera has substantially widened Nuvera Global Business Development set up its geographic reach • Regional leadership in place • Clear support structure, local and central • Implemented sound commercial processes and tools T O TA L C U S T O M E R E N G
Slide 80: Commercialization: Global Business Development
Commercialization: Global Business Development Sales team investments showing accelerating customer engagements across global markets Apr-21 Mar-21 N America Feb-21 Europe Asia Jan-21 Dec-20 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 # of Customer Engagements Transforming Hyster-Ya
Slide 81: Commercialization: Global Business Development
Commercialization: Global Business Development Nuvera accelerating conversion of customer interactions to demos (orders) SALES PIPELINE DEVELOPMENT 170 160 150 140 130 120 110 100 90 Demo Proposal/Quote 80 70 Integration Design 60 50 40 30 20 10 0 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Transforming Hyst
Slide 82: Commercialization: Full Customer Journey Strategy
Commercialization: Full Customer Journey Strategy Ready for taking GLOBAL DEMAND FOR the customer to FUEL CELLS volume Ready for volume, expanding across sectors • Commercial process active • Manufacturing/ Logistics in place • Parts and Aftermarket support ________ Source: Internal company estimate
Slide 83: Nuvera Summary – FY 2020 vs. FY 2019
Nuvera Summary – FY 2020 vs. FY 2019 Trends Financial Results Nuvera Nuvera • Hydrogen expansion and development ($ in millions) Variance projects delayed by pandemic FY 2020 FY 2019 • Focused on heavy-duty applications and Revenues $3.9 $10.1 ($6.2) commercialization Gross Profit (Loss) ($12.2) ($1
Slide 84: Nuvera Summary – Q1 2021 vs. Q1 2020
Nuvera Summary – Q1 2021 vs. Q1 2020 Trends Financial Results Nuvera Nuvera • Acceleration of business development ($ in millions) Variance Q1 2021 Q1 2020 in heavy-duty applications (not yet visible in revenues) Revenues $- $1.4 ($1.4) Gross Profit (Loss) ($3.3) ($2.6) ($0.7) Volume/Revenue • Reven
Slide 85: Hyster-Yale Materials Handling Financial Summary
Hyster-Yale Materials Handling Financial Summary Kenneth C. Schilling Senior Vice President and Chief Financial Officer
Slide 86: Key Drivers Over Last 5 Quarters
Key Drivers Over Last 5 Quarters 2020 2021 Q1/Q2 Q3/Q4 Q1 EARLY PANDEMIC STAGES MID-PANDEMIC STAGES STRONG RECOVERY BEGINS • Severe CV-19 Impact • Steady Recovery in Bookings • Very Strong Bookings • Utilized Backlog • Balanced Manufacturing • New/renewed Supply Chain Challenges • Implemented CV-19
Slide 87: Consolidated Results FY 2020 vs. FY 2019
Consolidated Results FY 2020 vs. FY 2019 HY FY HY FY 15% COVID-driven ($ in millions) Lift Truck(1) Bolzoni(1) Nuvera(1) Variance 12/31/20 12/31/19 Revenue reduction in unit, parts and Revenues $2,672.9 $283.7 $3.9 $2,812.1 $3,291.8 ($479.7) attachments offset by higher prices Gross Profit (Loss) $4
Slide 88: Consolidated Key Financial Metrics
Consolidated Key Financial Metrics Working Capital, Cash Flow Variance CV-19 Cost & Liquidity 2020 2019 Programs successfully and Capitalization ($ in millions) Fav/(Unfav) reduced Working Capital and increased Cash Flow Net Working Capital(1) $493.4 $611.1 $117.7 from Operations LTM Cash Flow befor
Slide 89: Continued Uncertainty as Economy Recovers
Continued Uncertainty as Economy Recovers New and intensifying headwinds are presenting significant challenges to operations in early 2021 As a result, uncertainty continues to limit HY’s ability to forecast Full-Year results Timing of price Logistic delays increases to match up and capacity Supplie
Slide 90: Consolidated Results Q1 2021 vs. Q1 2020
Consolidated Results Q1 2021 vs. Q1 2020 Unit production restricted HY HY ($ in millions) Lift Truck(1) Bolzoni(1) Nuvera(1) Variance by severe supplier and Q1 2021 Q1 2020 freight logistics constraints Revenues $690.9 $79.5 $- $732.2 $785.7 ($53.5) Lower volume (mainly Americas), reduced mfg. absor
Slide 91: Trends Affecting Lift Truck in 2020/2021
Trends Affecting Lift Truck in 2020/2021 Lift Truck Operating Profit and Operating Profit Margin % $30 $28 7.0% $24 Operating Profit Operating Profit Margin % (in millions) $20 $17 $16 5.0% $12 $10 3.7% 3.6% 3.0% 1.8% 2.7% 2.6% $0 1.0% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Remainder 2021 B
Slide 92: Liquidity: Hyster-Yale Priorities for Use of Cash
Liquidity: Hyster-Yale Priorities for Use of Cash INVESTMENTS Fuel Cell Business Lift Truck Business Focus on Investments to Expense and capital Maintaining commercialize investments in strategic Nuvera fuel cell programs to accelerate Return Cash to Liquidity technology growth and enhance Stockhold
Slide 93: 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 90 140 80 (total $ in millions) 120 70 (total $ in millions) 100 60 50 80 40 60 30 40 20 10 20 0 0 2016 2017 2018 2019 Original Actual Estimated 2016 2017 2018 2019 Original Actual Estimated 2020* 2020 2021* 2020* 202
Slide 94: Hyster-Yale Lift Truck Target Economics
Hyster-Yale Lift Truck Target Economics Lift Trucks Sold 149,000 As we make progress toward the 140,000 unit Lift Trucks Produced in HY plants 140,000 production levels, the Lift Truck Business is expected to generate significant incremental Revenues $4,500 operating profit contribution. Gross Profi
Slide 95: Target Economics Goal and Gap to Target
Target Economics Goal and Gap to Target Q1 2021 LTM Gap to Target Economics Actual Lift Truck Operating Profit Margin % 2.7% Margin % Variances – including impact of Tariffs 0.6% Expect to exceed 7% operating profit target as Volume % Variances* programs mature Manufacturing variances/other 2.4% Ope
Slide 96: Earnings Perspective – Q2 2021
Earnings Perspective – Q2 2021 LIFT TRUCK BOLZONI NUVERA Anticipated continued recovery Activity focused on sales Increasing unit volume of Global Counterbalanced lift prospect development for dependent upon supplier Revenues production of component and truck market expected to drive certified Fuel
Slide 97: Earnings Perspective – Long-Term Perspective
Earnings Perspective – LONG-TERM PERSPECTIVE LIFT TRUCK BOLZONI NUVERA Transformational programs Transformational programs to including Modular/Scalable Truck Continued introduction of new enhance the America and JAPIC program, new Low-Intensity truck Fuel Cell engine and stack capabilities along wi
Slide 98: HY – A Solid Investment Option
HY – A Solid Investment Option Through key strategic projects, HY is transforming its business using an Industry Approach to achieve financial targets Lift Truck Transformation Bolzoni Transformation Nuvera Transformation Transformative Products Transformation of Global Business • Commercialization
Slide 99: Appendix
Appendix iy HYSTER-YALE
Slide 100: Non-GAAP Disclosure
Non-GAAP Disclosure EBITDA and return on total capital employed are not measurements under U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures, and are not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines each as the foll
Slide 101: Non-GAAP Reconciliation EBITDA
Non-GAAP Reconciliation EBITDA ($ in millions) Year Ended December 31 Qtr. Qtr. LTM LTM Consolidated 2016 2017 2018 2019 2020 3/31/20 3/31/21 3/31/20 3/31/21 Reconciliation of EBITDA Net income attributable to stockholders $42.8 $48.6 $34.7 $35.8 $37.1 $15.3 $5.6 $47.7 $27.4 Nuvera asset impairment
Slide 102: Non-GAAP Reconciliation EBITDA continued
Non-GAAP Reconciliation EBITDA continued 9 Mths. ($ in millions) Ended Year Ended December 31 Qtr. Qtr. LTM LTM Bolzoni (1) 12/31/16 2017 2018 2019 2020 3/31/20 3/31/21 3/31/20 3/31/21 Reconciliation of EBITDA Net income (loss) attributable to stockholders $(0.3) $3.9 $5.8 $2.8 $0.2 $2.7 $0.6 $5.2 $
Slide 103: Non-GAAP Reconciliation ROTCE
Non-GAAP Reconciliation ROTCE ($ in millions) Reconciliation of Return on Total Capital Employed (ROTCE) Consolidated Lift Truck(1) Bolzoni Nuvera LTM 3/31/21 Average Stockholders' Equity (3/31/21, 12/31/20, 9/30/20, 6/30/20, and 3/31/20) $562.1 $685.9 $168.9 $34.6 Average Debt (3/31/21, 12/31/20, 9
Slide 104: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation CONSOLIDATED ($ in millions) Year Ended December 31 Qtr. LTM 2016 2017 2018 2019 2020 3/31/21 3/31/21 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operating activities $(48.9) $164.7 $67.6 $76.7 $166.9 $(47.1) $165.5 Net cash pro
Slide 105: Supplemental Information
Supplemental Information iy HYSTER-YALE
Slide 106: Hyster-Yale's Global Footprint
Hyster-Yale’s Global Footprint Danville, Illinois Gävle, Sweden Järvenpää, Finland Homewood, Illinois Frimley, UK Commercial Attachment Parts Distribution Center Inventory and Parts; Customer Moscow, Russia Hebei, China Wuxi, China Irvine, Scotland Division Headquarters; Subsidiary Manufacture Servi
Slide 107: Full Lift Truck Product Line
Full Lift Truck Product Line - Over 500 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 1.5T
Slide 108: 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 109: Overview and Sources of Revenue for FY 2020
Overview and Sources of Revenue for FY 2020 A leading global lift truck manufacturer HY sales of ~ 84,500 lift truck Additional ~ 6,600 lift Large installed population truck units sold in units in LTM 3/31/21 that drives parts sales ~71,500 units sold – produced in HY plants 2020 by Sumitomo Over 94
Slide 110: Global Lift Truck Market Rates of Change
Global Lift Truck Market Rates of Change ( 3 & 12 months rate of change trend) North Latin America America Brazil (excluding Brazil) Western Eastern Middle Europe Europe East & Africa Asia (excluding Japan China China & Japan) _____________________ Source: WITS. Bookings Reports. Transforming Hyster
Slide 111: Lift Truck Market Size Data
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 98,338 136,050
Slide 112: 2020 - 2021 Product Launches
2020 - 2021 Product Launches Hyster-Yale Products Expected to be Launched in Short-term: Launched in 2020: Hyster® UT and Yale® UX lift trucks for all countries New 2.5-3 ton integrated lithium-ion Electric Rider for Americas and EMEA markets New Reach Truck for Americas market Upgraded 6-
Slide 113: Life Cycle Costs
Life Cycle Costs Typical Truck Cost/Hour* Factors Impacting Low Cost of Ownership 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 114: Distribution Engagement
Distribution Engagement Independent n Exclusive n Entrepreneurial n Profitable n Committed partner n 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 115: Transforming the Future
Long-Term Focused, not Short-Term Oriented Transforming Partners the Future Suppliers Shareholders Dealers Employees Customers Transforming Hyster-Yale 115
Hyster-Yale Materials Handling — Investor Day (May 2021) on 6ix