Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Baird Industrial Conference 2013
25 slides from Hyster-yale's conference presentation, Nov 4, 2013
Slide 1: Baird Industrial Conference
Exhibit 99.1 BAIRD INDUSTRIAL CONFERENCE November 6, 2013
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 5,800 employees in 10 countries LTM 9/30/13 Revenue $2.6 – billion LTM 9/30/13 Net
Slide 4: Economic Engine is Driven by Unit Volume
Economic Engine is Driven by Unit Volume Drivers of long term competitive advantage Worldwide Volume Geographic Distribution Economies and Product Strength to Drive Basic Business Areas Balance of Scale Market Share Design Component Commonality Supply Chain Manufacturing Quality Marketing Parts Infr
Slide 5: Industry Overview
Industry Overview Global Lift Truck Industry Size Global Lift Truck Industry Breakdown (Units) (units in thousands) Long-term CAGR (2002 2012) – = 5.3% _____________________ _____________________ Source: WITS. Represents order intake. Source: WITS. 9/30/13 YTD order intake. Key Themes Growth similar
Slide 6: NMHG – Industry Sales Growth
NMHG –Industry Sales Growth 20% NMHG Sales vs. Global Lift Truck Industry (units in thousands) 15% 9.6% 10.0% 10% 7.3% 7.0% 5% 2.4% 0.3% 0% -2.6% -5% -3.7% Q4-12 Q1-13 Q2-13 Q3-13 WITS Orders NMHG Revenue Key Themes NMHG sales growing faster than industry ~10% Y/Y sales increase in Q2 and Q3 2013 Fo
Slide 7: Operating Profit Continues to Improve
Operating Profit Continues to Improve Operating Profit $ and % of Sales ($ in millions) Prior Cycle Market Peak Mid-Cycle Market $150 6.0% 4.9% $125 4.5% 4.0% $100 $128.3 2.1% $75 $111.7 2.0% $50 $57.3 $25 0.0% 2007 2012 LTM 9/30/13 6
Slide 8: Gap to Target Economics
Gap to Target Economics Goal is to achieve minimum operating marginof 7%atmid-cycle overthenext3 – 5 years 9/30/13 LTM Gap to Target EconomicsTarget Economics Gap Closure can be achieved by: Margin Variances: +0.6% 1. Increased margin on ICE trucks – Unit Margin (0.7%) – Parts/Other +1.3% - Segmenta
Slide 9: 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 NMHG Manufacturing Fixed Cost – Ability to produce 115,000* units annually – At Capacity Approximately $30m additional Fixed Cost Absorption
Slide 10: Over the Remainder of this Market Cycle, Target Volumes Driven by…
Over the Remainder of this Market Cycle, Target Volumes Driven by… – Industry recovery of 15-20% from 2013 levels EMEA 20-25%near - prior peak Americas 10-15% North America near prior peak New peaks in Latin America Asia 10-15%resume - growth to new peaks – Global share growth of approximately 2 per
Slide 11: Five Key Strategic Initiatives to Drive Margins and Market Share
Five Key Strategic Initiatives to Drive Margins and Market Share Over the Next53Years - Unit Margin Unit Share Enhanced Understanding of Customer Needs to Drive Tailored Solutions Masters of the World of Low Cost Ownership Succeed in Asian Markets Enhance Independent Distribution Significantly Impro
Slide 12: 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 – Additional standard and utility models Best product fit for customer application – Separated standard/premium segments – All products available
Slide 13: 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 – Cost reduction programs in conjunction with Expand fleet management Supply Base – Attractive lease rates thr
Slide 14: 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 Strengthened local presence in Asia and India Sales and marketing resources added Continued develo
Slide 15: 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 on investment Dedicated dealer development team Combine dealer entrepreneurship and 24 dual-brand dealers, 1
Slide 16: Significantly Improve Warehouse Business Position
Significantly Improve Warehouse Business Position Strategic Objectives Progress Gain share in faster growing segment of Investment in specialist talent market Improve dealer value proposition New product launches Engage dealers in developing warehouse capabilities Global product developed Product ga
Slide 17: Supplemental Initiatives
Supplemental Initiatives Big Trucks – Growth opportunity – Additional resources Global team Focus on industry / customer solutions – Tier 4 leadership Sales and marketing organization – Alignment with strategy execution – Focus on accountability – Talent management Brazil – New manufacturing facilit
Slide 18: Q3 2013 Highlights
Q3 2013 Highlights Q3 2013 Results 2013 Third Quarter Q3-13 TTM ($ in millions) $ % $ % 10% growth in Q3 2013 revenue and 11% growth in Revenue $643.9 100.0% $2,600.4 100.0% operating income vs Q3 2012 Operating Profit 31.3 4.9% 128.3 4.9% 2013 SG&A share gain investment continues in 2014 Net Income
Slide 19: Strong Free Cash Generation and Conservative Capital Structure
Strong Free Cash Generation and Conservative Capital Structure Strong cash generation with $384 million cumulative cash flow before financing since 2009 Conservative capitalstructure asof9/30/13withdebtof$121.8millionandcashof $184.7 million (1) Cash Flow before Financing (2) Debt / LTM EBITDA ($ in
Slide 20: 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) Premierbrands,comprehensive globalproductlineandexclusive, globalindependent distribution network 3) Strong economic engine driven by volum
Slide 21: Appendix
Appendix | HYSTER-YALE MATERIALS HANDLING
Slide 22: Non-GAAP Disclosure
Non-GAAP Disclosure EBITDAandreturnontotalcapitalemployed arenotmeasurements underU.S.GAAP,shouldnotbeconsidered 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: EBITDA
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($ in millions) Year Ended December 31 LTM 2010 2011 2012 9/30/13 Reconciliation of EBITDA Net income (loss) attributable to stockholders $32.4 $82.6 $98.0 $116.7 Noncontrolling interest income (loss) (0.1) – 0.1 0.2 Income taxes provision (benefit) 1.8 18.9 7.0 6.1 Interest
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) ($ in millions) Reconciliation of Return on Total Capital Employed (ROTCE) 9/30/13 LTM LTM Average Equity (9/30/13, 6/30/13, 3/31/13,12/31/12 and 9/30/12) $373.6 LTM Average Debt (9/30/13, 6/30/13, 3/31/13,12/31/12 and 9/30/12) 136.5 LTM Average Cash (9/30/13, 6/3
Slide 25: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation ($ in millions) Year Ended December 31 Trailing 12 Months 2010 2011 2012 9/30/13 Reconciliation of Cash Flow before Financing Net cash provided by operations $47.5 $54.6 $128.7 $148.8 Net cash used for investing activities (8.5) (15.9) (19.5) (22.5) Cash Flow b
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