Hyster-yale, Inc. · NYSE:HY
Hyster-yale — Hyster-Yale Materials Handling — Q1 2020 Earnings Presentation
27 slides from Hyster-yale's earnings presentation, June 2020
Slide 1: Q1 2020 Investor Presentation
Mass Customization Q1 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 Attachments Business 3 Our Fuel Cell 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 3/31/2020 Lift Truck Bolzoni Nuvera truck manufacturer offering a broad array of solutions aimed at Revenue $3,083.6 $341.5 $7.0
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: Weakening Global Lift Truck Industry
Weakening Global Lift Truck Industry Global Lift Truck Industry Size Lift Truck Industry Q4 2019 versus Q1 2020 (units in thousands) Long-term CAGR (2004 – 2019) = 5.2% Global Industry Americas Industry (units in thousands) (units in thousands) 1,500 400.0 90.0 1,200 350.0 75.0 900 300.0 60.0 600 25
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- Middle Estimated Industry Revenue Mix Pacific East & Class 2 Africa Class 1 7% Electric Japan Electric Class 1 3% 9% Class 5 16% Electric 6% ICE 22% Class 2 Europe 33% Class 5 Ele
Slide 9: COVID-19 Impact on Hyster-Yale
COVID-19 Impact on Hyster-Yale Q1 2020 results only moderately affected • Lift Truck and Bolzoni Chinese plant shutdowns early in quarter, and in Italy later in the quarter • EMEA plant shutdowns late in quarter A gradually weakening lift truck market deteriorated rapidly late in Q1 and even more so
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: production reduced/suspended as a result of government requirements, adjusted shift schedules, enhanced cleaning and sanitation practices, and instituted rem
Slide 11: 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 12: 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 13: Hyster-Yale strategic programs are transformative
Hyster-Yale strategic programs are transformative… …have the objective of driving revenue and profitability to target, but timing uncertain due to COVID-19 impact Our Core Lift Truck Business Our Attachments Business Our Fuel Cell Business New Low-Intensity Products New Standard Products Industry St
Slide 14: Results for Q1 2020 Consolidated vs. Q1 2019
Results for Q1 2020 Consolidated vs. Q1 2019 HY HY HY LTM HY LTM (1) (1) (1) ($ in millions) Lift Truck Bolzoni Nuvera Q1 2020 Q1 2019 Variance 3/31/20 3/31/19 Variance Revenues $747.4 $87.9 $1.4 $785.7 $834.8 ($49.1) $3,242.7 $3,225.4 $17.3 Gross Profit (Loss) $123.5 $16.9 ($2.6) $136.7 $126.2 $10.
Slide 15: Valuation Approach Should Vary By Business
Valuation Approach Should Vary By Business Lift Truck and Attachment Businesses Fuel Cell Business Mature Cyclical Industry Developing / Technology Industry Distinct Technology / Patents in Fuel Cell and Market Leading Products and Position Hydrogen Generation Operating Cash Invested in New Product
Slide 16: Financial Appendix
FINANCIAL ENTER SESSION APPENDIX TITLE HERE… Presenter Name
Slide 17: Non-GAAP Disclosure
Non-GAAP Disclosure EBITDA is not a measurement under U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures, and is not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines EBITDA as follows: EBITDA is defined as income (loss
Slide 18: Non-GAAP Reconciliation EBITDA
Non-GAAP Reconciliation EBITDA ($ in millions) Year Ended December 31 Qtr. Qtr. LTM Consolidated 2015 2016 2017 2018 2019 3/31/2019 3/31/2020 3/31/2020 Reconciliation of EBITDA Net income (loss) attributable to stockholders $ 74.7 $ 42.8 $ 48.6 $ 34.7 $ 35.8 $ 3.4 $ 15.3 $ 47.7 Nuvera asset impairme
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 3/31/2019 3/31/2020 3/31/2020 Reconciliation of EBITDA Net loss attributable to stockholders $ (14.6) $ (23.8) $ (26.7) $ (27.9) $ (25.2) $ (6.1) $ (6.7) $ (25.8) Nuvera as
Slide 20: Cash Flow before Financing Calculation
Cash Flow before Financing Calculation ($ in millions) Year Ended December 31 Qtr. LTM 2015 2016 2017 2018 2019 3/31/2020 3/31/2020 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operating $89.4 ($48.9) $164.7 $67.6 $76.7 ($45.7) $53.4 activities Net cash used for inves
Slide 21: Supplemental Information
SUPPLEMENTAL INFORMATION ENTER SESSION TITLE HERE… Presenter Name
Slide 22: Hyster-Yale's Global Footprint
Hyster-Yale’s Global Footprint Gävle, Sweden Järvenpää, Finland Homewood, Illinois Frimley, UK Commercial Attachment Danville, Illinois Inventory and Parts; Customer Irvine, Scotland Moscow, Russia Hebei, China Wuxi, China Division Headquarters; Subsidiary Manufacture Parts Distribution Center Servi
Slide 23: 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 24: 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 25: 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 26: Bolzoni: Enhance Strong OEM Relationships
Bolzoni: Enhance Strong OEM Relationships OEM OEM OEM TOP CUSTOMERS(1) SALES BY REGION(1) 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 50% 5%
Slide 27: Transforming the Future
Long-Term Focused, not Short-Term Oriented Transforming Partners the Future Suppliers Shareholders Dealers Employees Customers Transforming the Future 27
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