Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Baird Industrial Conference 2012
44 slides from Hyster-yale's conference presentation, Nov 6, 2012
Slide 1: Baird Industrial Conference
Exhibit 99.1 BAIRD INDUSTRIAL CONFERENCE November 6,2012
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,andSection21Eof theSecurities Exchange Actof 1934,asamended.Anyandallstatements regardingtheCompany’s expected future financial position, re
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 5,300 employees in 13 countries LTM9/30/12revenue– $2.5billion LTM9/30/12netincome
Slide 4: Economic Engine is Driven by Unit Volume
Economic Engine is Driven by Unit Volume Hyster-Yale’s model yields competitive advantages Worldwide Geographic Volume Distribution and Product Economies Strength to Drive Basic Business Areas Balance of Scale Market Share Design Component Commonality Supply Chain Manufacturing Quality Marketing Par
Slide 5: Parts and Service Contribution to Hyster-Yale's and Dealers' Profitability
Parts and Service Contribution to Hyster-Yale’s and Dealers’ Profitability Average truck life of about 10 years Hyster-Yale realizes significant additional parts margin over the life of an average truck, in some cases, up to 85% of the new unit margin – Parts margin realization varies due to Product
Slide 6: Industry and Hyster-Yale Overview
Industry and Hyster-Yale Overview Industry Overview – 2001-2011 long-term unit market growth rate 5.7% – 975,000 unit market globally in 2011 with Europe, Middle East and Africa at 38%, Americas at 23% and Asia/Pacific at 39% – Hyster-Yale 2011 unit market share at 8% of global market and 21% of the
Slide 7: Industry Overview
Industry Overview Global Lift Truck Industry Size Global Lift Truck Industry Breakdown (units in thousands) Middle East Asia Pacific 5% 7% Long-term CAGR (2001 2011) – = 5.7% 1,200 Japan 951 975 Europe 872 7% 900 794 33% 547 600 300 Americas 23% 0 2007 2008 2009 2010 2011 China _____________________
Slide 8: Hyster-Yale Overview
Hyster-Yale Overview Key Highlights Global Footprint Leading global lift truck brands in terms of units sold – #3 globally Large installed base that drives parts sales – Over 785,000 units worldwide Diverse customer and application base Global independent dealer network Comprehensive, updated global
Slide 9: Global Distribution Network and Diverse Global Customer Base
Global Distribution Network and Diverse Global Customer Base Global Distribution Network – Established brand strength – Independent dealer network – Complimented by a large national accounts program Diverse Global Customer Base – Blue chip customer base – No industry or customer concentration 8
Slide 10: Global Distribution Network with Large Installed Base
Global Distribution Network with Large Installed Base Hyster and Yale brands supported by strength of Hyster and Yale’s global independent dealer network Large Installed Base Across Diverse Markets Independent Dealer Network Sales of more than 79,500 units in 2011 Two brand network strategy optimize
Slide 11: Diverse Global Customer Base and Served Markets
Diverse Global Customer Base and Served Markets National Accounts 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 that include se
Slide 12: Key Highlights
Key Highlights Current strong position with significant improvement plans in – Products – Manufacturing – Supply Chain – Quality – Dealer Network – Operating Expenses – People 11
Slide 13: Key Highlights
Key Highlights Comprehensive, updated global product line Product development for -2013 2014 focuses on: Completing introduction offulllineofnextgeneration electricriderproducts including somewith“ICElike” Products capabilities Updating narrow aisle products with latest technology for increased prod
Slide 14: Key Highlights (continued)
Key Highlights (continued) Reliability engineering and lean manufacturing focus have led to low warranty costs and increased customer Quality satisfaction Focus on continuous improvement Global independent, exclusive dealer network Increasing use of dual brand representation Dealer Network Strengthe
Slide 15: Operating Profit Margins have Substantially Improved
Operating Profit Margins have Substantially Improved Operating Profit $ and % of Sales ($ in millions) Prior Cycle Market Peak Mid-cycle Market $150 6.0% $125 $110.0 $110.7 $100 4.0% 4.3% 4.4% $75 $57.3 $50 2.0% 2.1% $25 $0 0.0% 2007 2011 2012 LTM 14
Slide 16: Gap to Target Economics
Gap to Target Economics Goalof achieving minimum operating marginof 7%atmid-cycle overthenext3 – 5 years 2012 LTM Gap to Target Economics Target economics Gap Closure can be achieved by: Gap equals: (2.6% ) / $63m 1. Increased margin on ICE trucks Margin Variances: – Unit Margins - Segmentation (1.1
Slide 17: Five Key Strategic Initiatives to Drive Margins and Market Share
Five Key Strategic Initiatives to Drive Margins and Market Share Over the Next 3 - 5 Years Unit Margin Unit Share Masters of the World of Low Cost Ownership Significantly Improve Warehouse Business Position Enhance Independent Distribution Succeed in Asian Markets Enhanced Understanding of Customer
Slide 18: Masters of the World of Low Cost of Ownership
Masters of the World of Low Cost of Ownership Strategic Objectives Key Elements Key Deliverables and Timing Strategic Advantages 17
Slide 19: Masters of the World of Low Cost of Ownership
Masters of the World of Low Cost of Ownership Strategic Objectives Key Elements Sell More Trucks Understand Major Cost Drivers: Sell More Parts Direct (truck price, fuel, service, operator) Sell More Services Indirect (safety, litigation, pollution) And develop solutions that constantly By Deliverin
Slide 20: Significantly Improve Warehouse Business Position
Significantly Improve Warehouse Business Position Strategic Objectives Key Elements Key Deliverables and Timing Strategic Advantages 19
Slide 21: Significantly Improve Warehouse Business Position
Significantly Improve Warehouse Business Position Strategic Objectives Key Elements Focused approach to gain share against Direct support for dealer sales specialized market leaders Identify, qualify, assign and track performance of Improve dealer value proposition key customers Engage dealers to de
Slide 22: Enhanced Independent Distribution
Enhanced Independent Distribution Strategic Objectives Key Elements Key Deliverables and Timing Strategic Advantages 21
Slide 23: Enhanced Independent Distribution
Enhanced Independent Distribution Strategic Objectives Key Elements Recruit/develop strongest dealers in each territory Dual brand strategy Ensure opportunities for dealers to make strong Sales specialization returns on investment Dedicated dealer development team Combine dealer entrepreneurship and
Slide 24: Succeed in Asian Markets
Succeed in Asian Markets Strategic Objectives Key Elements Key Deliverables and Timing Strategic Advantages 23
Slide 25: Succeed in Asian Markets
Succeed in Asian Markets Strategic Objectives Key Elements Enhanced Dealer Organization and Structure Strategic Alliances for New Products/Components Develop Strategic Partners Build on Sumitomo Strength with Japanese Customers Sales/engineering/manufacturing/sourcing Strong local partners in China,
Slide 26: Enhanced Understanding of Customer Needs to Drive Tailored Solutions
Enhanced Understanding of Customer Needs to Drive Tailored Solutions Strategic Objectives Key Elements Key Deliverables and Timing Strategic Advantages 25
Slide 27: Enhanced Understanding of Customer Needs to Drive Tailored Solutions
Enhanced Understanding of Customer Needs to Drive Tailored Solutions Strategic Objectives Key Elements Best product fit for customer application Understand customer needs at a detailed level Related services to maximize customer Create differentiated product/service solutions and satisfaction more e
Slide 28: Positive Environment for Hyster-Yale to Gain Share and Margin Performance
Positive Environment for Hyster-Yale to Gain Share and Margin Performance Over Next 3 - 5 Years Product gaps filled to position H-Y in most application segments and improve margins Favorable cost structure relative to Japanese-centric and German-centric competitors Second-tier competitors in the ICE
Slide 29: Share Gain Focus Varies by Market
Share Gain Focus Varies by Market Region Focus Improve warehouse business position by enhancing product and non-product services North America Continue to implement dual brand dealer network strategy Strengthen dealer networks by attracting new dealers and building upon our stronger dealers Europe a
Slide 30: Historical Revenue
Historical Revenue Revenue ($ in millions) ______________________________ Note: 2012 LTM as of September 30, 2012. 29
Slide 31: Q3 2012 and LTM Highlights
Q3 2012 and LTM Highlights 2012 Third Quarter 9/30/12 LTM $ % $ % Revenue $585.6 100.0% $2,494.5 100.0% Operating Profit 28.3 4.8% 110.7 4.4% Net Income 24.9 4.3% 89.2 3.6% EBITDA(1) $37.8 6.5% $145.5 5.8% Debt $144.7 Cash 145.0 Net Debt ($0.3) _____________________ (1) EBITDAis a non-GAAPmeasureand
Slide 32: Q3 2012 Highlights
Q3 2012 Highlights Q3 2012 Results ($ in millions) 2012 Third Quarter 9/30/12 LTM $ % $ % Revenue pressure from unfavorable foreign currency Revenue $585.6 100.0% $2,494.5 100.0% movements due to the weakening euro and Brazilian real Operating Profit 28.3 4.8% 110.7 4.4% and lower year-over-year uni
Slide 33: Strong Free Cash Generation and Conservative Capital Structure
Strong Free Cash Generation and Conservative Capital Structure (1) Hyster-Yale has had strong cash flow, generating $258 million cumulative cash flow before financing from 2009 to 2012 YTD – $145 million cash on 9/30/12 Hyster-Yale has a conservative capital structure – Gross debt leverage is 1.0x E
Slide 34: Why Invest in Hyster-Yale?
Why Invest in Hyster-Yale? 1) Leading position in growing industry benefiting from globalization and worldwide economic recovery and development 2) Premier brands, comprehensive global product line andglobal exclusive, independent distribution network 3) Strong economic engine driven by volume econo
Slide 35: Appendix
Appendix i HYSTER-YALE MATERIALS HANDLING
Slide 36: Non-GAAP Disclosure
Non-GAAP Disclosure EBITDAand returnon totalcapitalemployedarenotmeasurements underU.S.GAAP,shouldnotbe considered in isolation or as a substitute for GAAP measures, and are not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines each as the following: EBITD
Slide 37: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) Year Ended December 31 LTM 2009 2010 2011 9/30/2012 Reconciliation of EBITDA Net income (loss) attributable to stockholders ($43.1) $32.4 $82.6 $89.2 Noncontrolling interest (income) loss (0.1) (0.1) – 0.1 Income taxes provision (benefit) (3.6) 1.8 18.9 15.9 I
Slide 38: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) ($ in millions) Reconciliation of Return on Total Capital Employed (ROTCE) 9/30/12 LTM LTM Average Equity (9/30/12, 6/30/12, 3/31/12, 12/31/11 and 9/30/11) $323.2 LTM Average Debt (9/30/12, 6/30/12, 3/31/12, 12/31/11 and 9/30/11) 192.7 LTM Average Cash (9/30/12, 6
Slide 39: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation ($ in millions) Year Ended December 31 Trailing 12 Months 2009 2010 2011 9/30/2012 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operations $115.9 $47.5 $54.6 $134.3 Net cash provided by (used for) investing activities 5.8 (8.5) (
Slide 40: Supplemental Perspective
Supplemental Perspective i HYSTER-YALE MATERIALS HANDLING
Slide 41: 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 40
Slide 42: Experienced Management Team
Experienced Management Team Hyster-Yale’s Executive Leadership Alfred M. Rankin Jr. Chairman, President and CEO of NACCO Industries since 1994 Chairman, President and Former Vice Chairman, Chief Operating Officer and Director of Eaton Chief Executive Officer Corporation Michael Brogan Former Executi
Slide 43: 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 44: 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
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