Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Investor Presentation (March 2018)
47 slides from Hyster-yale's investor presentation, Mar 1, 2018
Slide 1: Investor Presentation
Exhibit 99 Investor Presentation March 1, 2018 Solutions that DRIVEProductivity
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: Hyster-Yale at a Glance
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. Separate lift truck, attachment and hydrogen power s
Slide 4: Hyster-Yale is a Full-Line Lift Truck Supplier
Hyster-Yale is a Full-Line Lift Truck Supplier… CLASS 1 CLASS 2 CLASS 3 CLASS 4 CLASS 5 Electric Internal Electric Narrow Electric Hand Combustion Internal Combustion Engine Counterbalanced Aisle Trucks Trucks Engine (pneumatic tire) Rider Trucks (cushion tire) 1.0T to 5.5T 1.5T to 6.0T 1.5T to 8.0T
Slide 5: …with a 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 CLASS4 & 5 Clamps Forks Push Pulls Multipallets Electric Counterbalanced Rider Trucks Rotators Internal Combustion Engine (cushion tire) Electric Narrow Aisle Trucks Internal Combustion Engine (p
Slide 6: Hyster-Yale's Global Footprint
Hyster-Yale’s Global Footprint Gävle, Sweden Järvenpää, Finland Frimley, UK Commercial Attachment Moscow, Russia Danville, Illinois Homewood, Illinois Irvine, Scotland Division Headquarters; Hebei, China Parts Distribution Center Subsidiary Manufacture Commercial Attachment Manufacture European Admi
Slide 7: Maximal Transaction
Maximal Transaction • December 6, 2017 announced agreement to acquire 75% of the outstanding shares of, and a controlling interest in, Zhejiang Maximal Forklift Company Limited (“Maximal”) Aggregate purchase price $90 million • New company, Hyster-Yale Maximal Materials Handling Co. Ltd. (“HY Maxima
Slide 8: Maximal Transaction Rationale
Maximal Transaction R – ationale Low-cost source in China supports growth across our business and enhances ability to meet global customer needs: • Further strengthens and broadens HY’s product portfolio o Comprehensive range of UTILEV® trucks produced in-house o Utility and standard products to mee
Slide 9: Five Key Perspectives to Emphasize
Five Key Perspectives to Emphasize Global market unit levels expected to be relatively strong at a high level for next several years Lift Truck business objective of 7% operating profit margin in the medium term, with an added focus on progressive revenue growth and maintaining ROTCE above 20% Inves
Slide 10: Lift Truck Industry Overview
Lift Truck Industry Overview Global Lift Truck Industry Size Global Lift Truck Industry Breakdown (Units) (units in thousands) Middle East & Long-term CAGR (2004 2017) – = 5.4% Asia-Pacific 7% Africa 4% 1,200 Japan 6% 900 Europe 33% 600 China 27% 300 872 547 794 975 944 1,010 1,094 1,100 1,182 1,395
Slide 11: Global Lift Truck Market Rates of Change
Global Lift Truck Market Rates of Change ( 3 & 12 months rate of change trend) North Latin America America Brazil (excluding Brazil) Western Eastern Middle Europe East & Europe Africa Asia (excluding Japan China China & Japan) _____________________ Source: WITS. Bookings Reports. Solutions that DRIV
Slide 12: A Positive Profitability Trend
A Positive Profitability Trend Key Variables Impacting Impact on HY Performance 2016 2017 ($ in millions) 7% OPERATING PROFIT MARGIN TARGET Market Cycle by Country _ + 7.0% $145.0 2.9% Market Size by Industry _ 6.0% + 4.0% Gap $120.0 Gap 5.0% Market Size by Product _ =/+ 4.1% $95.0 Prior Cycle 4.0%
Slide 13: Lift Truck Business Target Economics Goal and Gap to Target
Lift Truck Business Target Economics Goal and Gap to Target FY 12/31/17 Gap to Target Economics Achieve 7% Target operating profit Actual Lift Truck Operating Profit Margin % 4.1% Economics gap margintarget over Margin Variances 1.0% closure can be Unit margin 1.2% achieved with the medium term unit
Slide 14: Share Gain Drives Our Economic Engine
Share Gain Drives Our Economic Engine Hyster-Yale’s economic engine is driven by increasing unit volume and economies of scale. Core strategic initiatives were designed to drive the economic engine by increasing share... Worldwide Geographic Volume Distribution and Product Economies Strength to Driv
Slide 15: Hydrogen-Powered Lift Truck Advantages & Opportunities
Hydrogen-Powered Lift Truck Advantages & Opportunities Benefits Growth Opportunities Population of Fuel Cell Powered Lift Trucks in • Constant power N. America North America 175,000+ 18,000 • As quick as 3 minute electric trucks sold 16,000 14,000 per year refuel 12,000 Global 10,000 • Operator prod
Slide 16: Companies Using Hydrogen Fuel Cells in Forklift Operations
Companies Using Hydrogen Fuel Cells in Forklift Operations Amazon Sysco FoodsWalmart Ace Hardware CVS Lowe’s TestaProduce Associated Wholesale EARP Distribution LPC Unified Grocers Grocers FedEx Martignetti United Natural Foods Baldor Specialty Foods GeneralMotors Martin Brower U.S. Foodservice BMW
Slide 17: Nuvera Highlights
NuveraHighlights Strengthening backlog • Backlog of over 300 units at 12/31/17 Existing Users • Evaluating measured volume increases Fuel Cell Hybrid Truck Reinstatement of U.S. tax credit expected Gen1 Engine / Integrated to drive higher demand and margins Solution Strong IP / Patent portfolio Pipe
Slide 18: Business Reconfiguration – Fuel Cell
Business ReconfigurationFuel – Cell Design of Fuel Cell Stacks ReliabilityGrowth Manufacture of Fuel Cell Sales &Marketing to Development of and Engines Engineering Stacks and Engines OEM’s and Partners Hydrogen Compression Technology & Products Lift Truck Business Design of BBR and ReliabilityGrowt
Slide 19: The Nuvera Plan 2018+
The NuveraPlan 2018 + At At Lift Truck Business Development of supply chain Build out sales, marketing and product support Increase Mean Time Between Failure (MTBF) to Complete product line-up of Battery Box industry leading levels Replacements (BBR) Ramp up in fuel cell stack and engine production
Slide 20: Bolzoni
Bolzoni JAPIC 5% Bolzoniis one of the worldwide leading manufacturers of lift truck attachments, forks Americas 57% and lift tables with an extensive product range 43% 22% • Managed as separate business segment EMEA • Separation to maintain OEM information 73% integrity MARKET / INDUSTRIES 2017 CUST
Slide 21: HY Path for Future Growth Includes Other Important Elements
HY Path for Future Growth Includes Other Important Elements… Fuel Cells Through Investment in New Technologies Through Partnership Automation Through Acquisition Through Core Lift Truck Business Share Gain Telematics Solutions that DRIVEProductivity 21
Slide 22: Share Gain Drivers
Strategy Roadmap for Share Gain Through New Account Acquisition Products & Solutions Focus Share Gain Drivers One-by-One Customer Focus Geographic Industry Focus Focus Industry / Customer Focus • Industry segment identification • Targeted messaging • Customers by segment • Disciplined contact manage
Slide 23: 2017 Fourth Quarter and Outlook
2017 Fourth Quarter and Outlook ($ in millions) 2017Fourth Quarter FY 12/31/17 Results Margins $ / % from Q4 16 Results Margins Consolidated Revenue $795.5(1) $104.9/ 15.2% $2,885.2(1) Consolidated Operating Profit $16.4 2.1% $8.0/ 95.2% $76.0 2.6% Consolidated Net Income (Loss) $(2.4) n/m $(14.6)/
Slide 24: Hyster-Yale Use of Cash Priorities
Hyster-Yale Use of Cash Priorities Investments in Core Lift Truck Business Strategic initiatives to accelerate growth or enhance margins Investments in Share Gain Programs Investments to commercialize Nuvera’s technology Investments in Hydrogen Power Business Acquisitions of technologies and other f
Slide 25: Valuation Approach Needs to Vary By Business
Valuation Approach Needs to Vary By Business Lift Truck and Attachment Businesses Hydrogen Power Business Mature Cyclical Industry Developing / Technology Industry Distinct Technology / Patents in Fuel Cell Market Leading Products and Position and Hydrogen Generation Operating Cash Invested in New P
Slide 26: A Solid Investment Option
A Solid Investment Option Leading Products & Customer Focused & Market Position Solutions Oriented Cash Generation & Strategies to Gain Share Commitment to in all Segments & Shareholder Return HYSTER-YALE Markets Strong Balance Investment & Growth in Sheet Game Changing Strong Return Technologies on
Slide 27: Financial Appendix
Appendix Financial Appendix Solutions that DRIVEProductivity
Slide 28: Non-GAAP Disclosure
Non-GAAP Disclosure EBITDAand return on total capitalemployedare not measurementsunder U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures,and are not necessarilycomparablewith similarlytitled measuresof other companies.Hyster-Yaledefineseachasthe following: EBITDAi
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) Year Ended December 31 Consolidated 2013 2014 2015 2016 2017 Reconciliation of EBITDA Net income attributable to stockholders $ 110.0 $ 109.8 $ 74.7 $ 42.8 $ 48.6 Nuveraasset impairment - - - - 4.9 Noncontrolling interest income (loss) 0.2 0.4 0.4 (0.5) 0.3 In
Slide 30: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) ($ in millions) Year Ended December 31 Nuvera 2014 2015 2016 2017 Reconciliation of EBITDA Net loss attributable to stockholders $ (1.4) $ (14.6) $ (23.8) $ (26.7) Nuveraasset impairment - - - 4.9 Noncontrollinginterest income - - - - Income tax benefit (0.8) (10.
Slide 31: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) ($ in millions) Reconciliation ofReturnonTotalCapitalEmployed / AdjustedReturnonCapitalEmployed (ROTCE) (1) Consolidated Lift Truck Nuvera Bolzoni 12/31/17 12/31/17 12/31/17 12/31/17 Average Stockholders' Equity (12/31/17, 9/30/17, 6/30/17, 3/31/17, and 12/31/16)
Slide 32: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation Consolidated ($ in millions) Year Ended December 31 2013 2014 2015 2016 2017 Reconciliation of Cash Flow before Financing Netcashprovidedby(usedfor)operatingactivities $152.9 $100.0 $89.4 $(48.9) $164.7 Net cash used for investing activities (26.1) (44.4) (31.3
Slide 33: Supplemental Information
Appendix Supplemental Information Solutions that DRIVEProductivity
Slide 34: The History of Hyster-Yale and its brands
The History of Hyster-Yale and its brands NMHG, HY’s NMHG operating introduces the company, HY announces UTILEV ® lift acquires Nuvera pending Hyster founded in Company name First Hyster Hyster truck for the to enter the fast- acquisition of Portland Oregon officially changed container introduces th
Slide 35: Overview and Sources of Revenue
Overview and Sources of Revenue A leading global lift truck manufacturer in terms of units sold Large installed lift truck HY sales of 93,400 lift Additional >6,900 lift #4 base that drives parts truck units in 2017 86,900 units sold -produced in HY truck units soldin Japan Globally in 2016 sales pl
Slide 36: Historical Consolidated Revenue
Historical Consolidated Revenue ($ in millions) $4,000 $2,885 $3,000 $2,720 $2,824 $2,666 $2,767 $2,578 $2,570 $2,541 $2,469 $2,400 $2,489 $2,057 $2,000 $1,802 $1,475 $1,000 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Solutions that DRIVEProductivity 36
Slide 37: Lift Truck Unit Class Shipments
Lift Truck Unit Class Shipments Industry Units by Geography Industry Units by Class Industry Unit Revenue by Class Asia- Middle Estimated Industry Revenue Mix Pacific East & 7% Africa 4% Class 1 Class 1 Japan 6% Electric Class 2 Electric Europe Class 5 17% 33% Electric 19% Class 2 ICE 10% Electric 3
Slide 38: 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 39: Our Long-Term Philosophy
Our Long-Term Philosophy Long-term Long-term Shareholder Senior Increase growth shareholders protection management shareholder value incentivized as Return on Capital long-term Employed and Market shareholders Share Increase focus Solutions that DRIVEProductivity 39
Slide 40: Product Philosophy
Product Philosophy Guiding Product Product Portfolio Focus Key Product Attributes Philosophy • Full product line • Support growth • Fit for market and application initiatives • Segmented solutions • Reliability and durability • Fill the factories • Scalable modular platforms • Energy efficiency • Di
Slide 41: Core Strategic Initiatives Update
Core Strategic Initiatives Update Initiative Strategic Objective Highlights Leader in Delivery of • Building industry focused teams to create and ensure • Provide the right product execution to meet industry needs Industry-& Customer- and solution to meet the • Increasing and realigning sales & mark
Slide 42: Core Strategic Initiatives Update
Core Strategic Initiatives Update Initiative Strategic Objective Highlights Leader in • Develop the strongest • Significant strengthening in core U.S. market Independent independent, • Growth of dual-brand coverage Distribution exclusive dealer • New dealers appointed in EMEA network • Enhanced deal
Slide 43: Core Strategic Initiatives Update
Core Strategic Initiatives Update Initiative Strategic Objective Highlights Leader in Fuel Cells • Nuvera: • Nuvera: Provide • Global partnership focus & Their Applications differentiated, cost effective • Supply chain and manufacturing improvements fuel cell stacks and engines • Increasing mean tim
Slide 44: Our Investment in R&D
Our Investment in R&D Lift Truck R&D Investment Full Product Line* % of Revenue 2.6% 2.6% 2.7% 2.9% 2.9% $78 FULL $ in millions $71 $71 $69 $69 MIN 2013 2014 2015 2016 2017 HY COMPETITORS * Full Product Line C – lass 1 through Class 5, including Big Truck Solutions that DRIVEProductivity 44
Slide 45: Areas of Focus
Areas of Focus Telematics Alternative Power • Internet of Things Battery Box Integrated • Asset management Solutions solutions • Fleet and truck data Diesel • Use of telematics Lead acid Automation LPG • Partnered approach • Camera and laser- Lithium ion based systems Lithium ion • Focus on integrat
Slide 46: Bolzoni's Brands
Bolzoni’s Brands BOLZONI Foundedin Italy in 1945,focusonlift truckattachments, forksandlifttables.A leading marketpositionthrough the developmentof a worldwide network of subsidiariesand dealers,aswell asstrategicacquisitions. AURAMO Founded in Finland in 1947, focus on paper roll clamps,bale clamps
Slide 47: FY 2017 Bolzoni Revenue by Product Line
FY 2017 Bolzoni Revenue by Product Line Other Revenues* Lift Table € 5,2 M Forks € 8,4 M 3% € 22,6 M 5% 15% € 157,7 M Attachments € 121,5 M 77% ___________ * Other Revenes –Rental business and Customer care. Note –Revenue by product line and percentages presented represent 2017 revenues in euros. So
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