Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Investor Presentation (October 2014)
24 slides from Hyster-yale's investor presentation, Oct 30, 2014
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation October 30, 2014 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The following information includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any and all statements regarding the Company’s expected future financia
Slide 3: Hyster-Yale Snapshot
Hyster-Yale Snapshot Hyster-Yale Materials Handling, Inc. (NYSE:HY) Leading global designer, manufacturer and marketer of lift trucks and provider of aftermarket parts and support Headquartered in Cleveland, Ohio Over 5,200 employees globally LTM9/30/14Revenue – $2.8billion LTM 9/30/14 Net income (1
Slide 4: Industry Overview
Industry Overview Global Lift Truck Industry Size Global Lift Truck Industry Breakdown (Units) (units in thousands) Middle East & Africa Long-term CAGR (2003 2013) – = 5.3% Asia Pacific 5% 7% 1,200 Japan Europe 8% 31% 900 600 300 Americas 951 872 547 794 975 944 1,009 1,071 24% 0 China 25% 2007 2008
Slide 5: Economic Engine is Driven by Unit Volume
Economic Engine is Driven by Unit Volume Drivers of long term competitive advantage Worldwide Geographic Volume Distribution and Product Economies Strength to Drive Balance of Scale Market Share Basic Business Areas Design Component Commonality Supply Chain Manufacturing Quality Marketing Parts Infr
Slide 6: Target Economics Goal and Gap to Target
Target Economics Goal and Gap to Target Goalistoachieve minimumoperatingprofitmarginof7%atmid-cycleandtoachieve7%operating profit margin at the peak of the current market cycle 9/30/14 LTM Gap to Target Economics Target Economics gap closure can be Actual Operating Profit Margin: 5.4% achieved by: M
Slide 7: Leverage Gained from Moving Volume to Full Manufacturing Capacity
Leverage Gained from Moving Volume to Full Manufacturing Capacity 100% 80% 31% 33% 25% 48% 60% Unused Capacity 40% Unit Volume 20% 0% 2010 2011 2012 2013 2016-2017 Objective of minimum 25,000 unit volume increase from 2013 levels $600m additional revenue $70m+ incremental operating profit Approximat
Slide 8: Over the Remainder of this Market Cycle, Target Volumes Driven by…
Over the Remainder of this Market Cycle, Target Volumes Driven by… 500 EMEA Industry Americas Industry 400 200 300 150 200 100 Actual Prior Peak 100 Actual Prior Peak 50 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Growth of 20-25% by 2018-2019* Growth of 10-15% by 2016-2017* Asia Industry 450
Slide 9: Key Strategic & Supplemental Initiatives drive the Economic Engine to Increased Share
Key Strategic & Supplemental Initiatives drive the Economic Engine to Increased Share Drivers of long term competitive advantage Worldwide Geographic Volume Distribution and Product Economies StrengthtoDrive Balance of Scale Basic Business Areas Market Share Leaders in Independent Design Crack the C
Slide 10: Enhanced Understanding of Customer Needs to Drive Tailored Solutions
Enhanced Understanding of Customer Needs to Drive Tailored Solutions Strategic Objective Status Provide the right product and solution to meet Segmentation the specific needs of different customers across – Segmenting in all classes multiple industries – Expanding Standard and Utility truck ranges –
Slide 11: Masters of the World of Low Cost of Ownership
Masters of the World of Low Cost of Ownership Strategic Objective Status Deliver lowest cost of ownership for all of ourCustomer facing customers based on their specific application – Energy efficient product solutions – Factory fitted telematics Key Elements – Enhanced fleet management capabilities
Slide 12: Succeed in Asian Markets
Succeed in Asian Markets Strategic Objective Status Expand market penetration throughout Asia Expanding production in India Electrics Big Trucks Key Elements Increased foreign brand share in China Organic growth through development of Strategic relationship in China dealer network and direct selling
Slide 13: Enhanced Independent Distribution
Enhanced Independent Distribution Strategic Objective Status Develop the strongest independent New dealers recruited dealer network Excellence programs enhanced Enhanced sales specialization Key Elements Enhanced sales messaging Develop all dealers Dealer business plan process implemented Appoint /
Slide 14: Significantly Improve Warehouse Business Position
Significantly Improve Warehouse Business Position Strategic Objective Status Strengthen penetration of the growing Increased NMHG and dealer sales specialization warehouse segment Warehouse solutions groups formed New products launched unique – to market Key Elements Large customer wins Enhance prod
Slide 15: Supplemental Initiatives
Supplemental Initiatives Big Truck Focus Enhanced Sales and Marketing – New products Organization – Specialist teams in each region – Greater accountability for results through smaller sales management – Global team coordination areas – Focus on industry and solutions – Leaders provided with new too
Slide 16: Positive Environment for Hyster-Yale to Gain Share and Margin Performance Over Next 3-5 Years
Positive Environment for Hyster-Yale to Gain Share and Margin Performance Over Next 3-5 Years Product gaps filled to position Hyster-Yale in most application segments and improve margins Low-cost manufacturing base relative to German-centric and Japanese-centric competitors Second-tier competitors i
Slide 17: Share Gain Expected to Take Place Over Time as Momentum is Gained in All Key Areas of Business
Share Gain Expected to Take Place Over Time as Momentum is Gained in All Key Areas of Business New Program Developing Achieved Momentum Product Improvement Supply Chain Manufacturing Quality Pricing Dealer Structure and Excellence Account Identification/Coverage Warehouse and Counterbalanced Solutio
Slide 18: Substantial Cash being returned to Stockholders
Substantial Cash being returned to Stockholders Stockholder returns Quarterly dividend established in November 2012 $50 million stock repurchase program announced in December 2012 Annual Dividends 2013Annualdividend- $1.00pershareor$16.7million 2014Annualdividend– 10%increasein May2014toanannualized
Slide 19: Q3 2014 Highlights
Q3 2014 Highlights Q3 2014 Results Hyster-Yale Outlook Short – Term (1) 2014 Third Quarter 9/30/14 LTM Growth rates for global lift truck market expected to decelerate during ($ in millions) Revenue $695.8 100.0% $2,774.4 100.0% the remainder of 2014, with growth generally concentrated in Western Op
Slide 20: Appendix
Appendix | HYSTER-YALE MATERIALS HANDLING
Slide 21: Non-GAAP Disclosure
Non-GAAP Disclosure EBITDA and return on total capital employed are not measurements under U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures, and are not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines each as the foll
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) Trailing 12 Year Ended December 31 Qtr. Months (1) 2009 2010 2011 2012 2013 9/30/14 9/30/14 Reconciliation of EBITDA Net income (loss) attributable to stockholders ($43.1) $32.4 $82.6 $98.0 $110.0 $28.4 $109.1 Noncontrolling interest income (loss) (0.1) (0.1)
Slide 23: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) ($ in millions) Reconciliation of Return on Total Capital Employed (ROTCE) 9/30/14 LTM LTM Average Stockholders' Equity (9/30/14, 6/30/14, 3/31/14, 12/31/13 and 9/30/13) $460.8 LTM Average Debt (9/30/14, 6/30/14, 3/31/14, 12/31/13 and 9/30/13) 60.9 LTM Average Cas
Slide 24: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation ($ in millions) Trailing 12 Year Ended December 31 Months 2009 2010 2011 2012 2013 9/30/14 Reconciliation of Cash Flow before Financing Net cash provided by operations $115.9 $47.5 $54.6 $128.7 $152.9 $105.3 Net cash provided by (used) for investing activities
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