Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Investor Presentation (May 2014)
38 slides from Hyster-yale's investor presentation, May 6, 2014
Slide 1: Investor Presentation May 2014
Exhibit 99.1 INVESTOR May PRESENTATON 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 5,100 employees globally LTM3/31/14Revenue – $2.7billion LTM3/31/14Netincome- $107.
Slide 4: Industry Overview
Industry Overview Global Lift Truck Industry Size Global Lift Truck Industry Breakdown (Units) (units in thousands) Middle East & Africa Asia Pacific 6% Long-term CAGR (2003 2013) – = 5.3% 7% 1,200 1,033 Japan Europe 951 975 944 1,009 30% 872 7% 900 794 547 600 300 Americas 25% China 0 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 MarketShare Basic Business Areas Design Component Commonality Supply Chain Manufacturing Quality Marketing Parts Infra
Slide 6: Hyster-Yale Overview
Hyster-Yale Overview Key Highlights Global Footprint Leading global lift truck manufacturer in terms of units sold – #3 globally in 2013 – Large installed base that drives parts sales – Over 815,000 units worldwide – Sales of more than 85,500 units in 2013 – Sales of > 4,200 units at SN JV in Japan
Slide 7: Hyster-Yale's Global Manufacturing Footprint
Hyster-Yale’s Global Manufacturing Footprint Strategically located fabrication and assembly footprint using lean processes Danville, Illinois Irvine, Scotland Frimley, Surrey UK Shanghai, China (JV) Fairview, Oregon Americas parts European administrative Divisional Assembly of lift trucks by Global
Slide 8: Distribution Channel Strength and Diverse Customer Base
Distribution Channel Strength and Diverse Customer Base National Accounts Profile Blue Chip Customer Base Focused on strategic customers with centralized purchasing and geographically dispersed operations across dealer territories Fleet Management Program provides customers with value-added services
Slide 9: Parts and Service Contribution to Hyster-Yale's and Dealers' Profitability
Parts and Service Contribution to Hyster-Yale’s and Dealers’ Profitability Growing unit field population of approximately 815,000 units globally at 12/31/13 Hyster-Yale realizes significant additional margin from service parts over the life of the truck Also critical to the success of our Independen
Slide 10: Ongoing Transformation of Business
Ongoing Transformation of Business Comprehensive, updated global product line Product Development focus on delivering Low Cost of Ownership based on customer applications: Deliver Tier 4 solutions Products Electric product with “ICE Like” performance Integrate advanced technology solutions: Lithium
Slide 11: Ongoing Transformation of Business
Ongoing Transformation of Business Warranty Costs (% of Sales) 50% decrease in standard warranty costs in North America3.0%since 2009 Initial quality has improved in North America by >40% since2.0% 2009 Quality 1.0% Model year update to ensure smooth implementation of upgrades 0.0% 2009 2010 2011 20
Slide 12: Hyster-Yale – Industry Sales Growth
Hyster-Yale – Industry Sales Growth Hyster-Yale Sales vs. Global Lift Truck Industry (units in thousands) 45% 41.0% 35% 25% 22.8% 15% 8.0% 9.6% 6.9% 4.8% 5% -5% -3.2% -2.8% FY-11 FY-12 FY-13 Q1-14 WITS Orders Hyster-Yale Revenue Key Themes Hyster-Yale sales grew faster than industry through 2013 Eur
Slide 13: Operating Profit Trends
Operating Profit Trends Operating Profit $ and % of Sales ($ in millions) Prior Cycle Market Peak Mid-Cycle Market $150 6.0% 5.0% 5.0% $125 4.5% $134 4.0% $100 $134 2.1% $75 $112 2.0% $50 $57 $25 0.0% 2007 2012 2013 LTM 3/31/14 12
Slide 14: Gap to Target Economics
Gap to Target Economics Goalis toachieveminimum operating profitmarginof7%atmid-cycle andtoachieve7%operating profitmarginat the peak of the current market cycle 3/31/14 LTM Gap to Target EconomicsTarget Economics gap closure can be achieved by: Margin variances: +0.3% 1. Increased margin on ICE tru
Slide 15: Volume Leverage on Manufacturing Capacity
Volume Leverage on Manufacturing Capacity 100% 80% 31% 33% 25% 48% 60% Unused Capacity 40% Unit Volume 20% 0% 2010 2011 2012 2013 2016-2017 Approximately $125m manufacturing fixed cost – Ability to produce 115,000* units annually – At capacity Approximately $30m additional fixed cost absorption Oper
Slide 16: 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 200 400 150 300 200 100 Actual Prior Peak Actual Prior Peak 100 50 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Growth of 20-25% by 2017 Growth of 10-15% by 2017 Asia Industry 450 Share growth
Slide 17: Enhanced Understanding of Customer Needs to Drive Tailored Solutions
Enhanced Understanding of Customer Needs to Drive Tailored Solutions Strategic Objectives Progress and Expectations Segment the global market Segmentation Best product fit for customer application – Additional standard and utility models Develop solutions for major segments – Separated standard/prem
Slide 18: Masters of the World of Low Cost of Ownership
Masters of the World of Low Cost of Ownership Strategic Objectives Progress and Expectations Revenue growth by delivering lowest cost of Cost of truck/lease ownership in target applications – Supplier Day programs at each factory Expand fleet management – Attractive lease rates through improved unde
Slide 19: Succeed in Asian Markets
Succeed in Asian Markets Strategic Objectives Progress and Expectations Enhanced dealer organization and structure Established new office in Malaysia Add new products tailored to needs of Asian markets Sales and marketing resources added Strengthened local presence in Asia and India Continued develo
Slide 20: Enhanced Independent Distribution
Enhanced Independent Distribution Strategic Objectives Progress and Expectations Recruit/develop strongest dealers Enhanced sales specialization Opportunity for dealers to make strong returns Dedicated dealer development team on investment Combine dealer entrepreneurship and 25 dual-brand dealers, 1
Slide 21: Significantly Improve Warehouse Business Position
Significantly Improve Warehouse Business Position Strategic Objectives Progress and Expectations Gain share in faster growing segment of market Investment in specialist talent Improve dealer value proposition Engage dealers in developing capabilities New product launches Product gap closure Global p
Slide 22: Supplemental Initiatives and a Facilitating Program
Supplemental Initiatives and a Facilitating Program Big Trucks Brazil – Growth opportunity – New manufacturing facility – Additional resources – Strengthened management team Global team – Expand local production Focus on industry and – Enhanced distribution customer solutions – Tier 4 leadership Sal
Slide 23: Key Initiatives Drive Sustainable Long Term Growth
Key Initiatives Drive Sustainable Long Term Growth Leaders inIndependent Distribution National Accounts Understand Needs of Customers Crack the Code in Warehouse Strong Dealer and Customer Loyalty driving a Low Cost of Ownership growing population, increased service and parts revenue and strong prof
Slide 24: 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 Basic Business Areas Market Share Leaders in Design Independent National Understand Needs of Distribution Accounts Com
Slide 25: Positive Environment for Hyster-Yale to Gain Share and Margin Performance Over Next Years
Positive Environment for Hyster-Yale to Gain Share and Margin Performance Over Next 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 in th
Slide 26: Historical Revenue
Historical Revenue Revenue ($ in millions) $3,000 $2,720 $2,824 $2,666 $2,697 $2,400 $2,489 $2,541 $2,469 $2,057 $2,000 $1,780 $1,802 $1,475 $1,000 $0 (1) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM _____________________ (1) As of March 31, 2014. 25
Slide 27: Q1 2014 Results
Q1 2014 Results Hyster-Yale Outlook – ShortTerm 2014 First Quarter 3/31/14 LTM 2014globallifttruckmarketexpectedtogrowmoderately inallmajor ($ in millions) $ % $ % global regions. Revenue $676.0 100.0% $2,697.4 100.0% Expected improvements in unit and parts volumes, market share and Operating grossp
Slide 28: Strong Free Cash Generation and Conservative Capital Structure
Strong Free Cash Generation and Conservative Capital Structure Strong cash generation with $436 million cumulative cash flow before financing from 2009 to 2013 Conservative capital structure as of 3/31/14 with debt of $33 million and cash of $107.3 million (1) Cash Flow before Financing (2) Debt / L
Slide 29: Rationale for Investing in Hyster-Yale
Rationale for Investing in Hyster-Yale 1) Leading position in growing industry benefiting from globalization and worldwide economic recovery and development 2) Premier brands, comprehensive global product line andglobal exclusive, independent distribution network 3) Strong economic engine driven by
Slide 30: Appendix
Appendix | HYSTER-YALE MATERIALS HANDLING
Slide 31: Non-GAAP Disclosure
Non-GAAP Disclosure EBITDAand returnon totalcapitalemployedarenotmeasurements underU.S.GAAP,shouldnotbe considered in isolation or as a substitute for GAAP measures, and are not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines each as the following: EBITD
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) Trailing 12 Year Ended December 31 Qtr. Months 2009 2010 2011 2012 2013 3/31/14 3/31/14 Reconciliation of EBITDA Net income (loss) attributable to stockholders ($43.1) $32.4 $82.6 $98.0 $110.0 $22.1 $107.5 Noncontrolling interest (income) loss (0.1) (0.1) – 0.
Slide 33: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) ($ in millions) Reconciliation of Return on Total Capital Employed (ROTCE) 3/31/14 LTM LTM Average Stockholders' Equity (3/31/14, 12/31/13, 9/30/13, 6/30/13 and 3/31/13) $415.6 LTM Average Debt (3/31/14, 12/31/13, 9/30/13, 6/30/13 and 3/31/13) 99.6 LTM Average Cas
Slide 34: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation ($ in millions) Trailing 12 Year Ended December 31 Months 2009 2010 2011 2012 2013 3/31/14 Reconciliation of Cash Flow before Financing Net cash provided by operations $115.9 $47.5 $54.6 $128.7 $152.9 $135.6 Net cash provided by (used) for investing activities
Slide 35: Supplemental Perspective
Supplemental Perspective 35
Slide 36: Mission Statement
Mission Statement Be a leading globally integrated designer, manufacturer and marketer of a complete range of high quality, application-tailored lift trucks, offering the lowest cost of ownership, outstanding parts and service support and the best overall value 35 L_ BYSTER MALE
Slide 37: Comprehensive Updated Global Product Line
Comprehensive Updated Global Product Line Class Capacity Range Description / Illustrative Application Electric counterbalanced trucks used in warehousing and manufacturing operations where noise or fuel emissions are undesirable Class I 1 ton – 5.5 tons A distribution center customer uses a Class I
Slide 38: Key Investment Highlights
Key Investment Highlights Leading Market Share in Materials Comprehensive Handling Global Product Line High-Impact Large Installed Strategic Initiatives Base Worldwide Modest Leverage Established & Strong Brand Strength Cash Flow Global Experienced Independent Dealer Management Team Network Highly F
Hyster-Yale Materials Handling — Investor Presentation (May 2014) on 6ix