Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Q3 2020 Earnings Presentation
42 slides from Hyster-yale's earnings presentation, November 2020
Slide 1: Q3 2020 Investor Presentation
Mass Customization Q3 2020 INVESTOR PRESENTATION Electrification Automation Digitization Globalization
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 Fuel Cell Business 3 Our Attachments Business Our Businesses Transforming the Future Our Core Lift Truck Business
Slide 4: Hyster-Yale at a Glance
Hyster-Yale at a Glance Hyster-Yale Materials Handling, Inc. (NYSE:HY) is a leading Key Metrics In millions (except employee data) globally integrated, full-line lift LTM 9/30/2020 Lift Truck Bolzoni Nuvera truck manufacturer offering a broad array of solutions aimed at Revenue $2,787.2 $302.4 $3.8
Slide 5: Full Lift Truck Product Line - Over 400 Different Truck Models Available
Full Lift Truck Product Line - Over 400 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 1.0T 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 2019 versus Q1, Q2 and Q3 2020 (units in thousands) Long-term CAGR (2004 – 2019) = 5.2% Global Industry Americas Industry 1,500 500.0 (units in thousands) (units in thousands) 100.0 450.0 1,200 400.0 90.0 80.0 900 350.0
Slide 8: Lift Truck Unit Class Shipments
Lift Truck Unit Class Shipments Industry Units by Geography Industry Units by Class Industry Unit Revenue by Class Asia- Estimated Industry Revenue Mix Middle Pacific East & Japan 6% Africa Class 2 Class 1 Class 1 5% 3% Electric Electric 8% Electric Europe Class 5 16% 22% 29% ICE 34% Class 5 ICE Cla
Slide 9: COVID-19 Impact on Hyster-Yale
COVID-19 Impact on Hyster-Yale Q3 2020 results were adversely affected by the continuing COVID-19 pandemic: • Significant declines in economic activity from shutdowns in Q2 2020 continued to effect global demand for HY’s products in Q3 2020 • Shipments decreased vs. Q3 2019, but increased over Q2 20
Slide 10: Actions Taken to Moderate Near-Term Impact of COVID-19
Actions Taken to Moderate Near-Term Impact of COVID-19 Operational Actions: • Procedures implemented to limit employees’ exposure to COVID-19 • Carefully managing shipments, backlog and lead times to match market conditions while also maintaining adequate production levels and minimal open productio
Slide 11: Hyster-Yale strategic programs will be transformative…
Hyster-Yale strategic programs will be transformative… …and have the objective of driving revenue and profitability to target, with some uncertainty to implementation timing PRIORITY PROGRAMS* Our Core Lift Truck Business Our Attachments Business Our Fuel Cell Business Product Operations: • Modular
Slide 12: Key Capital Expenditures
Key Capital Expenditures Capital Expenditures 90 80 70 Bolzoni (total $ in millions) 60 50 Nuvera 40 30 IT Systems 20 10 Core Forklift 0 Investments 2016 2017 2018 2019 Original Updated 2020* 2020* Capital expenditures directed to support key HY lift truck product initiatives along with development
Slide 13: Liquidity: Hyster-Yale Priorities for Use of Cash
Liquidity: Hyster-Yale Priorities for Use of Cash Focus on Maintaining Investments in Liquidity during Economic Attachments Business Expense and capital investments in strategic programs Downturn brought on by to accelerate growth and enhance margins COVID-19 Investments in Fuel Cell Business Invest
Slide 14: Results for Q3 2020 Consolidated vs. Q3 2019
Results for Q3 2020 Consolidated vs. Q3 2019 ($ in millions) HY HY HY LTM HY LTM (1) (1) (1) Lift Truck Bolzoni Nuvera Q3 2020 Q3 2019 Variance 9/30/20 9/30/19 Variance Revenues $618.7 $63.3 $0.7 $652.4 $766.0 ($113.6) $2,927.3 $3,297.8 ($370.5) Gross Profit (Loss) $94.3 $12.1 ($2.7) $103.4 $135.0 (
Slide 15: Valuation Approach Should Vary By Business
Valuation Approach Should Vary By Business Lift Truck and Attachment Businesses Fuel Cell Business Mature Cyclical Industry Developing / Technology Industry Distinct Technology / Patents in Fuel Cell and Market Leading Products and Position Hydrogen Generation Operating Cash Invested in New Product
Slide 16: Financial Appendix
FINANCIAL ENTER SESSION APPENDIX TITLE HERE… Presenter Name
Slide 17: Non-GAAP Disclosure
Non-GAAP Disclosure EBITDA and return on total capital employed are not measurements under U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures, and are not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines each as the foll
Slide 18: Non-GAAP Reconciliation EBITDA
Non-GAAP Reconciliation EBITDA ($ in millions) Year Ended December 31 Qtr. Qtr. LTM Consolidated 2015 2016 2017 2018 2019 9/30/2019 9/30/2020 9/30/2020 Reconciliation of EBITDA Net income attributable to stockholders $ 74.7 $ 42.8 $ 48.6 $ 34.7 $ 35.8 $ 12.8 $ 5.1 $ 27.4 Nuvera asset impairment - -
Slide 19: Non-GAAP Reconciliation EBITDA (continued)
Non-GAAP Reconciliation EBITDA (continued) ($ in millions) Year Ended December 31 Qtr. Qtr. LTM Nuvera 2015 2016 2017 2018 2019 9/30/2019 9/30/2020 9/30/2020 Reconciliation of EBITDA Net loss attributable to stockholders $ (14.6) $ (23.8) $ (26.7) $ (27.9) $ (25.2) $ (5.8) $ (6.1) $ (25.9) Nuvera as
Slide 20: Non-GAAP Reconciliation ROTCE
Non-GAAP Reconciliation ROTCE ($ in millions) Reconciliation of Return on Total Capital Employed / Return on Capital Employed (ROTCE) Consolidated Lift Truck(1) Nuvera Bolzoni LTM 9/30/20 Average Stockholders' Equity (9/30/20, 6/30/20, 3/31/20, 12/31/19, and 9/30/19) $533.1 $650.3 $31.7 $156.3 Avera
Slide 21: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation CONSOLIDATED ($ in millions) Year Ended December 31 Qtr. LTM 2015 2016 2017 2018 2019 9/30/2020 9/30/2020 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operating activities $89.4 ($48.9) $164.7 $67.6 $76.7 $88.1 $170.1 Net cash us
Slide 22: Supplemental Information
SUPPLEMENTAL INFORMATION ENTER SESSION TITLE HERE… Presenter Name
Slide 23: 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 Inventory and Parts; Customer Moscow, Russia Hebei, China Wuxi, China Irvine, Scotland Division Headquarters; Subsidiary Manufacture Servi
Slide 24: Overview and Sources of Revenue for FY 2019
Overview and Sources of Revenue for FY 2019 A leading global lift truck manufacturer HY sales of ~ 100,300 lift Additional ~ 7,200 lift Large installed population truck units sold in truck units in FY 2019 that drives parts sales ~91,300 units sold – produced in HY plants 2019 by Sumitomo Over 912,0
Slide 25: 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 Europe East & Africa Asia (excluding Japan China China & Japan) _____________________ Source: WITS. Bookings Reports. Transforming the Fu
Slide 26: Modular Solutions to Optimize Customer Productivity
Modular Solutions to Optimize Customer Productivity LOW COST HIGH FUNCTION + Operator Overhead Basic Cab Premium Cab Right One Truck Compartment Guard + Multiple Configurations Modules Powertrain Basic Electronic Advanced + Steering Hydraulic + Electric Right + + Cost Electrical Basic Full Featured
Slide 27: Modular Solutions to Optimize Customer Productivity (continued)
Modular Solutions to Optimize Customer Productivity (continued) Primary product focus is on modular and scalable product families covering both internal combustion engine (ICE) and electric trucks Products expected to provide customers with enhanced flexibility for meeting application needs comb
Slide 28: Direct Customer Engagement: Connecting Value to Requirements
Direct Customer Engagement: Connecting Value to Requirements HY Sales Transformation Evolving HY Business Increase Direct Enhanced Deploy Value Focus on Transformative Commercialize Needs Engagement Industry Sales Selling Process Customer Emerging Telemetry, Solutions Strategy Experience IoT & Digit
Slide 29: Direct Customer Engagement: Connecting Value to Requirements (continued)
Direct Customer Engagement: Connecting Value to Requirements (continued) COVID-19 Implications for Direct Customer Engagement: Direct Customer Engagement = both Physically and Digitally COVID-19 has accelerated the shift toward digitizing the buying process Customers want an easy online experi
Slide 30: Delivering Increased Value Through Direct Engagement
Delivering Increased Value Through Direct Engagement Increase Direct Engagement Specialization in industry Direct selling Augmenting dealer selling Supported dealer selling Transforming the Future 30
Slide 31: E-commerce Industry Products: Product Line Plans - Warehouse
E-commerce Industry Products Product Line Plans - Warehouse New End Rider New Range of Class 3 Trucks New Range of Reach Trucks Transforming the Future 31
Slide 32: 2020 Product Launches
2020 Product Launches Hyster-Yale Products Expected to be Launched in Short-term: Launched in first nine months of 2020: Hyster® UT and Yale® UX lift trucks for all countries New 2.5-3 ton integrated lithium-ion Electric Rider for Americas and EMEA markets New Reach Truck for Americas market
Slide 33: 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 34: Automation Journey
Automation Journey Partner Solutions Modular, Scalable Internally Developed Automation Horizontal Vertical … (Balyo) (JBT) Targeted Introduction of Initial Applications in 2021 Transforming the Future 34
Slide 35: 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 36: Bolzoni Core Strategies for Growth
Bolzoni Core Strategies for Growth AGV One North Enhance Industry JAPIC Market Company, America OEM Focus Expansion Presence 3 Brands Expansion Business Expansion Transforming the Future 36
Slide 37: Bolzoni – Focused Investments During COVID-19
Bolzoni – Focused Investments During COVID -19 One Company North America Expansion - Expansion of JAPIC 3 Brands Sulligent, Alabama: Footprint • Local production • Improved internal sales support with technical and Auramo® Bolzoni Meyer® engineering expertise Group • Team stability • Expanded servic
Slide 38: Bolzoni: Enhance Strong OEM Relationships
Bolzoni: Enhance Strong OEM Relationships OEM OEM OEM TOP CUSTOMERS(1)(2) SALES BY REGION(1)(2) SALES BY PRODUCT LINE(1)(2) Other OEM 5 OEM 5% ATTACHMENTS 8% 16% ASIA 9% FORKS OEM 4 OEM 1 29% 9% 33% AMERICA EUROPE INTEGRAL SIDE OEM 3 34% 57% SHIFTERS & 12% HOOK-ON OEM 2 SIDE CARRIAGES 33% SHIFTERS 5
Slide 39: Nuvera is a Transformational Opportunity
Nuvera is a Transformational Opportunity At a Glance: Application Portfolio Leading, Patented Technology Technology • SMVIC-certified E45 (45kW) Fuel Cell engine History • Certifying next level FC • 75+ engineers Demand Tapered in Short-term • 8th generation of Fuel engine E60 (~60kW) • High-efficie
Slide 40: Strong Demand Growth for Fuel Cells
Strong Demand Growth for Fuel Cells 120,000 $9,000 200,000 Global Estimates Units/Revenue $14,000 Regional Estimates Units/Revenue 180,000 $8,000 (US Million) $12,000 100,000 (USD Million) 160,000 $7,000 140,000 $10,000 80,000 $6,000 120,000 $8,000 $5,000 60,000 100,000 $4,000 80,000 $6,000 40,000 $
Slide 41: Market Trends / Nuvera Activity
Market Trends / Nuvera Activity North America Market Europe Market Trend: China Market Trend: Trend: • City & Country bans on ICE • Government subsidy moving to larger • Currently dominated by Materials • Nuvera has started cooperation in engines with early targets as Buses and Handling (>25k units)
Slide 42: Transforming the Future
Long-Term Focused, not Short-Term Oriented Transforming Partners the Future Suppliers Shareholders Dealers Employees Customers Transforming the Future 42
Hyster-Yale Materials Handling — Q3 2020 Earnings Presentation on 6ix