Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Q4 2021 Earnings Presentation
49 slides from Hyster-yale's earnings presentation, Mar 1, 2022
Slide 1: Transforming Hyster-Yale: An Industry Approach
Q4 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 CEO P&L and balance sheet 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 globally integrated, full-line lift In millions (except employee data) FY 12/31/2021 Lift Truck Bolzoni Nuvera truck manufacturer offering a broad array of solutions aimed at Revenue $2,897.4 $347.8 $0.7
Slide 5: Full Lift Truck Product Line - Over 560 Different Truck Models Available
Full Lift Truck Product Line - Over 560 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 6: …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 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 7: Global Lift Truck Market
Global Lift Truck Market Global Lift Truck Industry Size Lift Truck Industry Q4 2020 versus Q4, Q3, Q2 and Q1 2021 (units in thousands) Long-term CAGR (2004 – 2021) = 7.3% 2,700 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 2,341 0 2008
Slide 8: Global Lift Truck Market Rates of Change
Global Lift Truck Market Rates of Change ( 3 & 12 months rate of change trend) Recovery in bookings in all Geographic areas since Q2 2020 lows, but moderating in past 3 to 6 months North Latin America America Brazil (excluding Brazil) Western Eastern Middle Europe Europe East & Africa Asia (excludin
Slide 9: 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 6% Africa 3% Japan Class 1 Class 2 4% Electric Electric 16% 8% Class 1 Electric Europe Class 5 ICE 24% 30% 29% Class 5 ICE Chin
Slide 10: HY Faces Significant Headwinds as Economy Continues to Grow
HY Faces Significant Headwinds as Economy Continues to Grow Headwinds presented significant challenges in 2021, and many are expected to continue, with some moderation, into the third quarter of 2022 Timing of price Logistic delays increases to match and capacity Supplier cost increase timing constr
Slide 11: Results for Q4 2021 Consolidated vs. Q4 2020
Results for Q4 2021 Consolidated vs. Q4 2020 HY HY HY FY HY FY ($ in millions) (1) (1) (1) Lift Truck Bolzoni Nuvera Q4 2021 Q4 2020 Variance 12/31/21 12/31/20 Variance Revenues $783.5 $93.5 $0.2 $829.7 $719.6 $110.1 $3,075.7 $2,812.1 $263.6 Gross Profit (Loss) $54.4 $14.1 ($4.4) $63.5 $121.7 ($58.2
Slide 12: Results for Q4 2021 Consolidated vs. Q4 2020 continued
Results for Q4 2021 Consolidated vs. Q4 2020 continued ($ in millions) Lift Truck bookings increased 16.5% over Q4 2020 levels, but at a more moderate pace than in the first three quarters of 2021 due to a moderating market Consolidated revenues increased 15.3% over Q4 2020 due to a 24.2% increa
Slide 13: Business Prospects (Outlook)
Business Prospects (Outlook) Lift Truck Market($and bookings in millions) • FY 2022 Lift Truck Market expected to recede from 2021 historical highs • Expected to remain higher than pre-pandemic levels • Bookings – substantial decrease anticipated in 2022 compared with 2021, with rate of decrease e
Slide 14: Liquidity: Hyster-Yale Priorities for Use of Cash
Liquidity: Hyster-Yale Priorities for Use of Cash Focus on Maintaining Liquidity • Unused Borrowing Capacity of INVESTMENTS ~$165.1m and ~$65.5m in Cash @ 12/31/21 • HY managing capital Lift Truck Business Fuel Cell Business expenditures, operating Expense and capital Investments to expenses and pro
Slide 15: 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 (total $ in millions) 70 60 100 50 80 40 60 30 40 20 10 20 0 0 2017 2018 2019 Estimate Actual Actual Estimate 2017 2018 2019 Estimate Actual Actual Estimate 2020 2020 2021 2022 2020
Slide 16: Target Economics Goal and Gap to Target
Target Economics Goal and Gap to Target Lift Truck Business Q4 2021 Gap to Target Economics Actual Lift Truck Operating Profit Margin % (11.9)% Margin % Variances – including impact of Tariffs 10.0% Expect to exceed 7% operating profit target as programs Volume % Variances* mature Manufacturing vari
Slide 17: 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 18: 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 18
Slide 19: 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 20: 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 21: Objective is to 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 22: 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 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: Nuvera Product Platforms: Comprehensive approach to hydrogen mobility market
Nuvera Product Platforms: Comprehensive approach to hydrogen mobility market Nuvera makes FC technology WORK for customers E-Series Fuel Cell Engines: Stacks / E-45 and E-60 Subsystems Easily integrated fuel cell module For OEMs that understand stack deployment For medium- and heavy- duty equipment
Slide 25: 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 26: HY – A Solid Investment Option
HY – A Solid Investment Option Fuellarge At Lift Truck business, progressive improvement expected from Cell losses in Lift to Q1 2022 Truck & Attachments significant profit in Q4 2022 and in 2023 Fuel Cell Business Businesses Business At Bolzoni, progress expected from moderate profit in Q1 2022
Slide 27: HY – A Solid Investment Option: Transformation Through Key Strategic Projects
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 28: Appendix
Appendix ti) HYSTER-YALE
Slide 29: Non-GAAP Disclosure
Non-GAAP Disclosure Adjusted EBITDA, Adjusted Cash Flow before Financing, Adjusted Operating Profit (Loss) and Adjusted Net Income (Loss) 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 similarl
Slide 30: Non-GAAP Reconciliation Adjusted EBITDA
Non-GAAP Reconciliation Adjusted EBITDA ($ in millions) Year Ended December 31 Qtr. Qtr. Consolidated 2017 2018 2019 2020 2021 12/31/20 12/31/21 Reconciliation of EBITDA Net income (loss) attributable to stockholders $48.6 $34.7 $35.8 $37.1 $(173.0) $13.1 $(103.3) Goodwill and other intangible asset
Slide 31: Non-GAAP Reconciliation Adjusted EBITDA continued
Non-GAAP Reconciliation Adjusted EBITDA continued ($ in millions) Year Ended December 31 Qtr. Qtr. Bolzoni 2017 2018 2019 2020 2021 12/31/20 12/31/21 Reconciliation of EBITDA Net income (loss) attributable to stockholders $3.9 $5.8 $2.8 $0.2 $(0.2) $(2.0) $(2.4) Noncontrolling interest income 0.7 0.
Slide 32: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation CONSOLIDATED ($ in millions) Year Ended December 31 Qtr. 2017 2018 2019 2020 2021 12/31/21 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operating activities $164.7 $67.6 $76.7 $166.9 $(253.5) $(61.7) Net cash used for investing a
Slide 33: Reconciliations for Adjusted Operating Profit (Loss)
Reconciliations for Adjusted Operating Profit (Loss) ($ in millions) Reconciliations of Adjusted Operating Profit (Loss) Consolidated Lift Truck(1) Bolzoni(1) Nuvera(1) FY 12/31/21 Operating Profit (Loss) $(152.3) $(86.9) $(1.8) $(62.3) Asset impairment charges 65.6 55.6 - 10.0 Nuvera inventory adju
Slide 34: Reconciliations for Adjusted Net Income (Loss)
Reconciliations for Adjusted Net Income (Loss) ($ in millions) Reconciliations of Adjusted Net Income (Loss) Consolidated Lift Truck(1) Bolzoni(1) Nuvera(1) FY 12/31/21 Net income (loss) attributable to stockholders $(173.0) $(111.9) $(0.2) $(59.4) Asset impairment charges 65.6 55.6 - 10.0 Nuvera in
Slide 35: Supplemental Information
Supplemental Information ti) HYSTER-YALE
Slide 36: 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 Moscow, Russia Hebei, China Wuxi, China Inventory and Parts; Customer Irvine, Scotland Division Headquarters; Subsidiary Manufacture Servi
Slide 37: Overview and Sources of Revenue
Overview and Sources of Revenue A leading global lift truck manufacturer HY sales of ~ 95,200 lift truck Additional ~ 7,300 lift Large installed population truck units sold in units in FY 12/31/21 that drives parts sales ~77,100 units sold – produced in HY plants 2021 by Sumitomo Over 960,000 lift t
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: HY Product Launches
HY Product Launches Launched in 2021: Counterbalanced • 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 market • Upgrades to Fuel Cell Battery Box Replacements (BBR) for Electric Riders Big Trucks • Market launch of
Slide 40: 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 41: 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 42: 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 43: Distribution Engagement
Distribution Engagement Independent Exclusive Entrepreneurial Profitable Committed partner 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 44: 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 2% attachments, forks and lift tables, cylinders and transmissions with an extensive product range Transmissions 27% At
Slide 45: 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 SHIFTERS OEM 5 3% OEM Other JAPIC 6% 10% 16% OEM 4 OEM 1 INTEGRAL 13% 34% SIDE EUROPE FORKS SHIFTERS & 49% 38% AMERICAS CARRIAGES OEM 3 45% 35% 13% OEM 2 27% 11% ATTACHM
Slide 46: Nuvera Is a Transformational Opportunity
Nuvera Is a Transformational Opportunity At a Glance: Application Portfolio • E-45 (45kW) as well as E-60 Leading, Patented Technology Technology (59kW) Fuel Cell engines SMVIC-certified Experience • First bus with E-series • 75+ engineers engine MIIT certified Demand Tapered in Short-term • 8th gen
Slide 47: 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, with a signifi
Slide 48: Technology: Optimized Fuel Cell Engine Design
Technology: Optimized Fuel Cell Engine Design Nuvera FC Engines enable commercial and industrial vehicle electrification Embedded controls For ease of integration, reliability, and durability Unique Stack architecture High efficiency and power density Telemetry Effective remote monitoring of FC engi
Slide 49: Product Platforms: examples
Product Platforms: examples Dannar® Mobile Power Station: FC concept development Hyster Toploader: Demo unit KingLong bus: Certification Different phases of the Application Off-road equipment Trucks Buses customer journey Focus Delivery Vans & Commercial Vehicles Capacity Terminal Tractors: