Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Q3 2021 Earnings Presentation
46 slides from Hyster-yale's earnings presentation, Nov 3, 2021
Slide 1: Transforming Hyster-Yale: An Industry Approach
Q3 2021 INVESTOR PRESENTATION TRANSFORMING HYSTER-YALE AN INDUSTRY APPROACH
Slide 2: Safe Harbor Statement & Disclosure
Safe Harbor Statement & Disclosure This presentation includes forward-looking comments subject to important risks and uncertainties. It may also contain financial measures that are not in conformance with accounting principles generally accepted in the United States of America (GAAP). Refer to Hyste
Slide 3: 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 4: 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 9/30/2021 Lift Truck Bolzoni Nuvera truck manufacturer offering a broad array of solutions aimed at Revenue $2,797.8 $322.6 $1.6
Slide 5: Results for Q3 2021 Consolidated vs. Q3 2020
Results for Q3 2021 Consolidated vs. Q3 2020 HY HY HY LTM HY LTM ($ in millions) (1) (1) (1) Lift Truck Bolzoni Nuvera Q3 2021 Q3 2020 Variance 9/30/21 9/30/20 Variance Revenues $703.8 $90.0 $0.2 $748.2 $652.4 $95.8 $2,965.6 $2,927.3 $38.3 Gross Profit (Loss) $66.9 $15.2 ($16.5) $65.1 $103.4 ($38.3)
Slide 6: Business Prospects (Outlook)
Business Prospects (Outlook) ▪ Market and bookings Q4 2021 and 2022 expected to: ($ in millions) • Lift Truck Market – Q4 2021 decrease from Q4 2020, and FY2022 expected to recede from 2021 historical highs • Both periods expected to remain significantly higher than pre-pandemic levels • Bookings –
Slide 7: 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 8: Liquidity: Hyster-Yale Priorities for Use of Cash
Liquidity: Hyster-Yale Priorities for Use of Cash INVESTMENTS Lift Truck Business Fuel Cell Business Focus on Expense and capital Investments to Maintaining investments in strategic commercialize programs to accelerate Nuvera fuel cell Return Cash to Liquidity growth and enhance technology margins S
Slide 9: 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 10: 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 11: Global Lift Truck Market
Global Lift Truck Market Global Lift Truck Industry Size Lift Truck Industry Q4 2020 versus Q3, Q2 and Q1 2021 (units in thousands) Long-term CAGR (2004 – 2020) = 5.4% 2,400 2,100 1,800 1,500 1,200 900 600 300 872 547 794 975 944 1,010 1,094 1,100 1,182 1,395 1,538 1,507 1,638 2,258 0 2008 2009 2010
Slide 12: Global Lift Truck Market Rates of Change
Global Lift Truck Market Rates of Change Recovery in bookings in all Geographic areas since Q2 2020 lows ( 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) _________
Slide 13: Lift Truck Unit Class Shipments
Lift Truck Unit Class Shipments Industry Units by Geography Industry Units by Class Industry Unit Revenue by Class Middle East & Estimated Industry Revenue Mix Asia-Pacific Africa 6% 3% Class 2 Class 1 Electric Japan Electric 7% 4% 16% Class 1 Electric Europe Class 5 ICE 23% 29% 31% Class 5 ICE Chin
Slide 14: HY Faces Significant Headwinds as Economy Continues to Recover
HY Faces Significant Headwinds as Economy Continues to Recover Headwinds presenting significant challenges to operations in fourth quarter of 2021 and are expected to continue in first half of 2022 Timing of price Logistic delays increases to match and capacity Supplier cost increase timing constrai
Slide 15: Target Economics Goal and Gap to Target
Target Economics Goal and Gap to Target Lift Truck Business Q3 2021 LTM Gap to Target Economics Actual Lift Truck Operating Profit Margin % 1.1% Expect to exceed 7% operating Margin % Variances – including impact of Tariffs 4.1% profit target as programs Volume % Variances* mature Manufacturing vari
Slide 16: 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 17: Lift Truck Modular and Scalable Platforms
Lift Truck Modular and Scalable Platforms Customers seek efficiency in their Launching as the Hyster® A Series and the Yale® Series N operations. Scalable configurations provide optimal solutions. Transforming Hyster-Yale 17
Slide 18: Lift Truck Telemetry and Operator Assist System Solutions
Lift Truck Telemetry and Operator Assist System Solutions Operator Assist Systems: Technologically advanced features designed to help reinforce safe and Telemetry: Data and analysis is becoming productive increasingly important to operations truck operation that help Telemetry can provide a complete
Slide 19: Lift Truck Automation Products
Lift Truck Automation Products Customers are seeing great value in operator free, continuous operations Partner Solutions Modular, Scalable Internally Developed Automation Horizontal Vertical (Balyo) (JBT) HY-automated lift trucks provide an infrastructure independent and flexible solution TT Transf
Slide 20: Transform Commercial Competitiveness in an Evolving Market
Objective is to Transform Commercial Competitiveness in an Evolving Market Hyster-Yale Evolving Sales Transformation Customer’s HY Industry Industry-Focused Participation-Focused Advanced 360 Degree Highly Connected Transformative Requirements Approach Sales Management Selling Systems Aftersales Sol
Slide 21: Bolzoni Core Strategies: Multiple Dimensions of Growth Opportunities
Bolzoni Core Strategies: Multiple Dimensions of Growth Opportunities BOLZONI TRANSFORMATION BOLZONI GROWTH BOLZONI AMERICAS & CHINA FINANCIALS BOLZONI Transformation HY – BOLZONI SYNERGIES RENTAL & SECOND HAND ATTACHMENTS OEM RELATIONSHIP SILVER LINE LEVERAGE GLOBAL COST SOLUTION BOLZONI TECHNOLOGY
Slide 22: Nuvera Product Platforms: Hydrogen Mobility Market
Nuvera 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 appl
Slide 23: Nuvera Product Platforms: Integrated Service / Support to Customers
Nuvera Product Platforms: Integrated service / support to customers Nuvera supports customers along their lengthy hydrogen implementation journey Decision Electrification Integration Design Demo Vehicle GO TO SERIES VOLUME Decision Decision Decision Vehicle Test GO ELECTRIC USE FUEL CELLS CHOOSE NUV
Slide 24: 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 25: 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 • Commercialization of E-45 / E-60 engines Transformat
Slide 26: Appendix
Appendix iy HYSTER-YALE
Slide 27: 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 28: Non-GAAP Reconciliation EBITDA
Non-GAAP Reconciliation EBITDA ($ in millions) Year Ended December 31 Qtr. Qtr. LTM LTM Consolidated 2016 2017 2018 2019 2020 9/30/20 9/30/21 9/30/20 9/30/21 Reconciliation of EBITDA Net income (loss) attributable to stockholders $42.8 $48.6 $34.7 $35.8 $37.1 $5.1 $(77.2) $27.4 $(56.6) Nuvera asset
Slide 29: Non-GAAP Reconciliation EBITDA continued
Non-GAAP Reconciliation EBITDA continued 9 Mths. ($ in millions) Ended Year Ended December 31 Qtr. Qtr. LTM LTM Bolzoni (1) 12/31/16 2017 2018 2019 2020 9/30/20 9/30/21 9/30/20 9/30/21 Reconciliation of EBITDA Net income (loss) attributable to stockholders $(0.3) $3.9 $5.8 $2.8 $0.2 $0.1 $2.2 $2.4 $
Slide 30: 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 9/30/21 Average Stockholders' Equity (9/30/21, 6/30/21, 3/31/21, 12/31/20, and 9/30/20) $567.9 $707.7 $175.6 $24.9 Average Debt (9/30/21, 6/30/21, 3/
Slide 31: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation CONSOLIDATED ($ in millions) Year Ended December 31 Qtr. LTM 2016 2017 2018 2019 2020 9/30/21 9/30/21 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operating activities $(48.9) $164.7 $67.6 $76.7 $166.9 $(91.1) $(101.0) Net cash u
Slide 32: Supplemental Information
Supplemental Information iy HYSTER-YALE
Slide 33: 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 34: Overview and Sources of Revenue
Overview and Sources of Revenue A leading global lift truck manufacturer HY sales of ~ 90,100 lift truck Additional ~ 6,600 lift Large installed population truck units sold in units in LTM 9/30/21 that drives parts sales ~74,900 units sold – produced in HY plants 2020 by Sumitomo Over 941,000 lift t
Slide 35: 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 36: 2021 Product Launches
2021 Product Launches Hyster-Yale Products Expected to be Launched in Short-term: ▪ Launched to date in 2021: ▪ New modular, standard 2-3.5 ton ICE trucks for EMEA market ▪ New 2.5-3 ton integrated Li-ion Cushion Electric Rider for Americas ▪ Stage V engine option for 18-22 and 25-32 ton forklift tr
Slide 37: 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 38: 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 39: 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 40: 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 41: Strong Base and Opportunities to Leverage Materials Handling Solutions
Strong Base and Opportunities to Leverage Materials Handling Solutions PORTFOLIO PRODUCTS One of the world’s leading of the Bolzoni Group(1) manufacturers of lift truck Lift tables 3% attachments, forks and lift tables, cylinders and transmissions with an extensive product range Transmissions 26% At
Slide 42: Bolzoni has a Strong OEM Foundation
Bolzoni has a Strong OEM Foundation OEM OEM OEM TOP CUSTOMERS(1)(2) SALES BY REGION(1)(2) SALES BY PRODUCT LINE(1)(2) HOOK-ON SIDE OtherOEM OEM5 SHIFTERS 5% 5% 3% JAPIC 9% FORKS OEM4 OEM1 27% 13% 32% AMERICA EUROPE INTEGRAL SIDE OEM3 33% 58% SHIFTERS & 17% CARRIAGES OEM2 53% 30% ATTACHMENTS 15% (1)
Slide 43: Nuvera is a Transformational Opportunity
Nuvera is a Transformational Opportunity At a Glance: Application Portfolio Leading, Patented Technology Technology • E45 (45kW) as well as E60 (59kW) Fuel Cell History engines SMVIC-certified • 75+ engineers Demand Tapered in Short-term • 8th generation of Fuel • First Bus with E-series engine MIIT
Slide 44: 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 45: 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 45
Slide 46: 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: