BAIRD INDUSTRIAL CONFERENCE November 6, 2012 Exhibit 99.1 |
1 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 financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans, goals and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the expectations of the Company’s management. The Company does not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include, without limitation, reduction in demand for lift trucks and related aftermarket parts and service on a global basis; the ability of our dealers, suppliers and end-users to obtain financing at reasonable rates, or at all, as a result of current economic and market conditions; customer acceptance of pricing; delays in delivery or increases in costs, including transportation costs, of raw materials or sourced products and labor or changes in or unavailability of quality suppliers; exchange rate fluctuations, changes in foreign import tariffs and monetary policies and other changes in the regulatory climate in the foreign countries in which we operate and/or sell products; delays in manufacturing and delivery schedules; bankruptcy of or loss of major dealers, retail customers or suppliers; customer acceptance of, changes in the costs of, or delays in the development of new products; introduction of new products by, or more favorable product pricing offered by, our competitors; product liability or other litigation, warranty claims or returns of products; the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives; changes mandated by federal, state and other regulation, including health, safety or environmental legislation; and other risks identified in the Company’s Registration Statement on Form S-1 and other filings with the Securities and Exchange Commission. Many of these factors are outside of the Company’s control. |
2 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 LTM 9/30/12 revenue – $2.5 billion LTM 9/30/12 net income - $89.2 million LTM 9/30/12 EBITDA (1) – $145.5 million 9/30/12 net debt – $0.3 million cash LTM 9/30/12 ROTCE (1) of 27.5% (Net Debt Basis) _____________________ (1) EBITDA and ROTCE are non-GAAP measures and should not be considered in isolation or as a substitute for GAAP measures. For discussion of non-GAAP items and the related reconciliations to GAAP measures, see pages starting on 35. |
3 Economic Engine is Driven by Unit Volume Volume Economies of Scale Geographic and Product Balance Worldwide Distribution Strength to Drive Market Share Parts and Service Volume Large Lift Truck Population in Service Design Component Commonality Supply Chain Manufacturing Quality Marketing Parts Infrastructure Capital Requirements A large lift truck population base drives parts and service volume resulting in enhanced profitability for dealers and Hyster-Yale Hyster-Yale’s model yields competitive advantages Basic Business Areas |
4 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 life Application / duty cycle Product category Focus on increasing parts margin realization – Lock in parts (for H-Y and dealer) and service (for dealer) with full service contracts and/or fleet management – Understand needs of customer |
5 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 Americas market Hyster-Yale Overview – #3 in units globally in 2011 – Large installed base of 785,000 units worldwide – Serves broad set of markets – Internal Combustion Engine (ICE) units at 57%, Electric units at 26%, Parts and Other at 17% – Global footprint |
6 Growth near GDP levels in developed markets with emerging markets driving expansion, particularly China Strong demand for warehouse and distribution industry applications Increasing focus on battery technology development Integration of automated technology in products and processes Importance of total lifecycle cost of ownership Ongoing consolidation opportunities Key Themes Industry Overview (units in thousands) Global Lift Truck Industry Size _____________________ Source: WITS. Represents order intake. Global Lift Truck Industry Breakdown Lift Truck Market Share Overview _____________________ Source: WITS and Company data. Represents order intake. Global Americas _____________________ Source: WITS. Represents order intake. Europe 33% China 25% Americas 23% Japan 7% Asia Pacific 7% Middle East 5% Hyster -Yale 21% Hyster -Yale 8% 951 872 547 794 975 0 300 600 900 1,200 2007 2008 2009 2010 2011 Long-term CAGR (2001 – 2011) = 5.7% |
7 Hyster-Yale Overview 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 product line Globally integrated operations with economies of scale Experienced management team _____________________ (1) Represents Hyster-Yale North American unit shipments by industry. (2) Includes Big Truck sales that represent 9% of total sales. Key Highlights Global Footprint 2011 Sales by Geography 2011 Retail Shipments by End Market (1) 2011 Worldwide Sales by Product Electric Units 26% Internal Combustion Engine (“ICE”) Units (2) 57% Parts 13 % Other 4% Manufacturing 23% Wholesale Distribution 14% Home Centers / Retail 13% Rental 12% Food & Beverage 11% Freight & Logistics 9% Paper 6% Auto 5% Other 7% Americas 62% Europe, Africa & Middle East 29% - Asia-Pacific 9% |
8 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 |
9 Global Distribution Network with Large Installed Base Two brand network strategy optimizes local presence and customer reach – Presence in over 130 countries worldwide – Increasing use of dual brand representation Key differentiating factors: – Long-term relationships with dealers – Territorial exclusivity encourages strong, long- term relationships with customers – Brand exclusivity ensures dealers’ selling efforts focused on Hyster-Yale products Hyster-Yale supports its dealer network purchases through strong financing services with concentration on a long-standing partnership with GE Capital primarily with NMHG Financial Services, Inc., (“NFS”) in North America, and with established financing relationships in other regions Hyster and Yale brands supported by strength of Hyster and Yale’s global independent dealer network Sales of more than 79,500 units in 2011 – Sales of more than 4,500 units at Sumitomo NACCO JV in 2011 in Japan Installed base of approximately 785,000 lift trucks Utilized in more than 700 industries No industry or customer concentration Hyster-Yale primarily markets lift trucks and aftermarket parts under two well-recognized and respected brand names that resonate performance and quality Hyster – manufacturer of lift trucks since 1934 Yale – manufacturer of lift trucks since 1920 Large Installed Base Across Diverse Markets Established Brand Strength Independent Dealer Network |
10 Diverse Global Customer Base and Served Markets National Accounts Worldwide Channel Mix 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 service, aftermarket parts and comprehensive management of materials handling needs National Accounts 15% Independent Dealers 85% |
11 Key Highlights Current strong position with significant improvement plans in – Products – Manufacturing – Supply Chain – Quality – Dealer Network – Operating Expenses – People |
12 Key Highlights Comprehensive, updated global product line Product development for 2013 2014 focuses on: Completing introduction of full line of next generation electric rider products including some with “ICE like” capabilities Updating narrow aisle products with latest technology for increased productivity and robustness Enhancing the motorized hand riders for the most demanding, high hour usage Adding a range of utility and standard models to the core premium line for the ICE products Globally integrated, lean operations with economies of scale Assemble in market of sale Focus on continuous improvement in lean processes, quality and cost control Highly flexible low cost supply chain Substantial sourcing from low cost countries Continuing to reduce number of suppliers Extend supplier quality program Focus on continuous improvement - Manufacturing Supply Chain Products |
13 Key Highlights (continued) Quality Reliability engineering and lean manufacturing focus have led to low warranty costs and increased customer satisfaction Focus on continuous improvement Dealer Network Global independent, exclusive dealer network Increasing use of dual brand representation Strengthen networks by attracting new dealers and building on stronger dealers Enhance services to make dealers more profitable and productive Operating Expenses Efficient operating structure Focus on continuous improvement in dealer performance, sales coverage and productivity and pricing processes People Experienced management team Focus on continuous improvement in: Recruiting Talent Management Training |
14 Operating Profit Margins have Substantially Improved Prior Cycle Market Peak Mid-cycle Market Operating Profit $ and % of Sales ($ in millions) $57.3 $110.0 $110.7 2.1% 4.3% 4.4% 0.0% 2.0% 4.0% 6.0% $0 $25 $50 $75 $100 $125 $150 2007 2011 2012 LTM |
15 Gap to Target Economics Goal of achieving minimum operating margin of 7% at mid-cycle over the next 3 – 5 years 2012 LTM Gap to Target Economics Gap equals: (2.6% ) / $63m Margin Variances: Target economics Gap Closure can be achieved by: 1. Increased margin on ICE trucks - Segmentation - Low Cost of Ownership 2. Unit volume - Share Growth - Stronger Industry - Achieve Operating Leverage – – Volume Variances: – – Unit Margins (1.1%) Other 0.9% Manufacturing Variances (1.4%) Operating Expenses (1.0%) |
16 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 Needs to Drive Tailored Solutions |
17 Masters of the World of Low Cost of Ownership Strategic Objectives Key Elements Key Deliverables and Timing Strategic Advantages |
18 Opportunity for a holistic approach: – Operator / Truck / Energy – Service / Safety / Rejuvenation / End of Life Strategic Advantages Strategic Objectives Key Elements Key Deliverables and Timing Masters of the World of Low Cost of Ownership Sell More Trucks Sell More Parts Sell More Services Understand Major Cost Drivers: Short Term (2013) – LCO metrics vs. competition/convert into marketing materials for salesforce Medium / Long Term – Expand fleet management to offer LCO- based services By Delivering Lowest Cost of Ownership (LCO) in all target applications And develop solutions that constantly lower cost of ownership and create differentiated competitive position To create sustainable customer benefit and competitive differentiation Indirect (safety, litigation, pollution) Direct (truck price, fuel, service, operator) |
Significantly Improve Warehouse Business Position Strategic Objectives Key Deliverables and Timing Strategic Advantages 19 Key Elements |
20 Meets needs of specialist market while leveraging economies of scale Focus on the sales/ consultancy process while leveraging its distribution network after-sales support Two brands covering entire market opportunity, focused on different customer segments Strategic Advantages Strategic Objectives Key Elements Key Deliverables and Timing Focused approach to gain share against specialized market leaders Improve dealer value proposition Engage dealers to develop warehouse focus Develop product gap closure plans Direct support for dealer sales Identify, qualify, assign and track performance of key customers Performance guarantees and protection of residual values Detailed project plans 2012 Dedicated warehouse specialist teams in place – US: Q1 2013 Product enhancements complete Q2 2013 Dealer engagement program Q2 2013 Significantly Improve Warehouse Business Position |
21 Enhanced Independent Distribution Strategic Objectives Key Elements Key Deliverables and Timing Strategic Advantages |
22 Exclusive, independent distribution Two brands covering entire industry opportunity, focused on different market segments with a comprehensive product range Strategic Advantages Strategic Objectives Key Elements Key Deliverables and Timing Recruit/develop strongest dealers in each territory Ensure opportunities for dealers to make strong returns on investment Combine dealer entrepreneurship and performance excellence with OEM support Dual brand strategy Sales specialization Dedicated dealer development team Identify, qualify, assign and track performance of key customers Dealer restructuring ongoing – 2013 - 2016 Dealer excellence – Ongoing Customer / market intelligence – Teams formed and deliverables defined Enhanced Independent Distribution |
23 Succeed in Asian Markets Strategic Objectives Key Elements Key Deliverables and Timing Strategic Advantages |
24 Strong Partners Restructured Product Offerings Improved / New Dealer Organization Strengthened Customer Facing Organization Better dealer management Enhanced support structure Strategic Advantages Strategic Objectives Key Elements Key Deliverables and Timing Enhanced Dealer Organization and Structure Develop Strategic Partners Sales/engineering/manufacturing/sourcing Local presence in Asia and India Add New Products tailored to market opportunity Strategic Alliances for New Products/Components Build on Sumitomo Strength with Japanese Customers Strong local partners in China, India & Japan Greater “Fit for Market” Product Offering Increased Asian presence – 2013 Strengthen Dealer Organization – 2013 Develop partners / alliances through 2014 Succeed in Asian Markets |
25 Enhanced Understanding of Customer Needs to Drive Tailored Solutions Strategic Objectives Key Elements Key Deliverables and Timing Strategic Advantages |
26 Deep understanding of the market place and dynamics Build relationships with key customers in target industries Tailored solution for any application with the right truck Development of a culture that understands the market and what it takes to win Best product fit for customer application Related services to maximize customer satisfaction Understand customer needs at a detailed level Create differentiated product/service solutions and more effective selling materials describing our benefits vs. competition Tailored Application Solutions – Develop industry strategies and application guides Product Positioning – New models focus on cost effectively serving the utility and standard market needs and relieve price pressure on premium products by refocusing on the premium segments Enhanced Understanding of Customer Needs to Drive Tailored Solutions Results in: – Market Share Growth – Achievement of Target Margin Key Deliverables and Timing Strategic Advantages Strategic Objectives Key Elements |
27 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 segment more vulnerable due to their weakened economy of scale position and currency Key warehouse segment competitors are regional Key Big Truck segment competitors are niche |
28 Share Gain Focus Varies by Market Region Focus North America Improve warehouse business position by enhancing product and non-product services Continue to implement dual brand dealer network strategy Europe and Other Developed Markets Strengthen dealer networks by attracting new dealers and building upon our stronger dealers Leverage international customers to penetrate large accounts Improve warehouse business position by enhancing product and non-product services Enhance ICE share by focusing on standard and utility products Developing Markets Leverage ICE strength by supplementing current premium offering with utility and standard products Strengthen dealer organization |
29 Historical Revenue ______________________________ Note: 2012 LTM as of September 30, 2012. Revenue ($ in millions) |
30 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) EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. For discussion of non-GAAP items and the related reconciliations to GAAP measures, see pages starting on 35. |
31 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 $37. 8 6.5 % $14 5.5 5.8% Debt $144.7 Cash 145.0 Net Debt Q3 2012 Highlights Q3 2012 Results Hyster-Yale Outlook – Long Term Revenue pressure from unfavorable foreign currency movements due to the weakening euro and Brazilian real and lower year-over-year unit shipments. Net income favorable to the third quarter of 2011 due to improved unit price, unit mix movement towards higher value/margin products and favorable impact of FX contracts. Fourth quarter global lift truck market expected to continue to moderate, with global volumes down slightly from the prior year. Weakness in Western Europe, Japan and Latin America offset by small improvements in other markets. Backlog of almost 25,600 units represents 16 weeks of production and supports 4 quarter production plan. ($ in millions) Hyster-Yale Outlook – Short Term Hyster-Yale is focused on increasing operating profit margins by increasing market share and improving product margins to target levels – Focus on the 5 strategic initiatives – Selective new product introductions _____________________ (1) EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. For discussion of non-GAAP items and the related reconciliations to GAAP measures, see pages starting on 35. th (1) ($0.3) |
32 Strong Free Cash Generation and Conservative Capital Structure Hyster-Yale has had strong cash flow, generating $258 million cumulative cash flow before financing from 2009 to 2012 YTD – $145 million cash on 9/30/12 Hyster-Yale has a conservative capital structure – Gross debt leverage is 1.0x EBITDA – Net debt leverage is 0.0x EBITDA Debt / LTM EBITDA (2) Stability to weather market changes with significant flexibility for growth Cash Flow before Financing (1) ($ in millions) 0.0x Net Debt Gross Debt _____________________ .(1) Cash Flow before Financing is defined as cash from operating activities less cash from investing activities. (2) EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. For discussion of non-GAAP items and the related reconciliations to GAAP measures, see pages starting on 35. $122 $39 $39 $58 $0 $50 $100 $150 2009 2010 2011 2012 YTD 1.0x 0.0x 0.5x 1.0x 1.5x 2.0x 9/30/12 (1) |
33 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 and exclusive, global independent distribution network 3) Strong economic engine driven by volume economies of scale 4) Focused strategic initiatives to gain market share and enhance margins over next 3 – 5 years 5) High potential for partnership and consolidation opportunities 6) Strong balance sheet, financial flexibility and attractive returns on capital employed 7) Focused investment in capital goods sector with growth opportunity: a) In developed countries from exposure to goods movement, distribution and warehousing b) In developing countries (Brazil, Eastern Europe, India and Asia) from exposure to industrialization |
Appendix |
35 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 following: For reconciliations from GAAP measurements to non-GAAP measurements, see pages 36 and 37. EBITDA is defined as income before income taxes and non-controlling interest (income) expense plus net interest expense and depreciation and amortization expense; Return on total capital employed (“ROTCE”) is defined as net income before interest expense, after tax, divided by LTM average capital employed. LTM average capital employed is defined as LTM average equity plus LTM average debt less LTM average cash. |
36 Non-GAAP Reconciliation 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 Interest expense 19.0 16.6 15.8 13.6 Interest income (2.8) (2.3) (1.8) (1.5) Depreciation and amortization expense 36.2 33.9 31.3 28.2 EBITDA $5.6 $82.3 $146.8 $145.5 Reconciliation of cash flow from operations to EBITDA Cash flow provided by operations $115.9 $47.5 $54.6 $134.3 Change in working capital items (113.7) (6.6) 73.1 (21.5) Gain (loss) on sale of assets and businesses 1.4 (6.1) (0.2) (0.1) Restructuring (charges) reversals (9.3) 1.9 – – Difference between deferred income taxes and total tax provision (benefit) (32.1) 1.0 5.2 14.4 Other non-cash items 27.2 30.3 0.1 6.3 Interest expense, net 16.2 14.3 14.0 12.1 EBITDA $5.6 $82.3 $146.8 $145.5 ($ in millions) _____________________ Note: *EBITDA is provided solely as a supplemental disclosure. EBITDA does not represent net income or cash flow from operations, as defined by U.S. GAAP and should not be considered as a substitute for net income or net loss, or as an indicator of operating performance or whether cash flows will be sufficient to fund cash needs. Hyster-Yale defines EBITDA as income before income taxes and non-controlling interest income plus net interest expense and depreciation and amortization expense. EBITDA is not a measurement under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies. |
37 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, 6/30/12, 3/31/12, 12/31/11 and 9/30/11) (160.8) LTM average capital employed $355.1 LTM Net income $89.2 Plus: LTM Interest expense 13.6 Less: Income taxes on LTM interest expense at 38% (5.2) Actual return on capital employed = actual net income before interest expense, after tax $97.6 Actual return on capital employed percentage 27.5% _____________________ Note: Return on capital employed is provided solely as a supplemental disclosure with respect to income generation because management believes it provides useful information with respect to earnings in a form that is comparable to the Company’s cost of capital employed, which includes both equity and debt securities, net of cash. |
38 Cash Flow before Financing Calculation ($ 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) (15.9) (15.9) Cash Flow before Financing $121.7 $39.0 $38.7 $118.4 |
Supplemental Perspective |
40 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 |
41 Experienced Management Team Alfred M. Rankin Jr. Chairman, President and Chief Executive Officer Chairman, President and CEO of NACCO Industries since 1994 Former Vice Chairman, Chief Operating Officer and Director of Eaton Corporation Michael Brogan President and CEO, NACCO Materials Handling Group (“NMHG”) Former Executive Vice President, International Operations of NMHG Joined NMHG in 1983 Former President, NMHG Americas Joined NMHG in 1988 Colin Wilson Vice President and COO Previously Divisional President at Villeroy and Boch AG and VP of Group Marketing at Linde AG Joined NMHG in 2006 Ralf Mock Managing Director, Europe, Africa and Middle East Former VP, Chief Marketing Officer of NMHG Formerly, SVP Strategy & Product Development, Case Corporation Joined NMHG in 1995 Victoria Rickey Vice President, Asia-Pacific Rajiv Prasad Vice President, Global Product Development and Manufacturing Former VP, Global Product Development of NMHG VP Global Product Development for International Truck, Navistar Joined NMHG in 2007 Charles Bittenbender Vice President, General Counsel and Secretary Previously Deputy General Counsel of G.D. Searle & Co. Joined NACCO in 1990 Kenneth Schilling Vice President and CFO Previously CFO of NMHG and Vice President and Controller of NACCO Joined NACCO in 1991 Hyster-Yale’s Executive Leadership |
42 Class Capacity Range Description / Illustrative Application Class I 1 ton – 5.5 tons Electric counterbalanced trucks used in warehousing and manufacturing operations where noise or fuel emissions are undesirable A distribution center customer uses a Class I truck to move pallets from one trailer to another Class II 1.5 tons – 6 tons Electric narrow aisle trucks used indoors to handle high-density storage of materials in narrow-aisled buildings Retail and warehouse customers rely on Class II trucks to pick orders off their shelves Class III 1.5 tons – 8 tons Electric hand trucks used indoors and outdoors for applications requiring the user to select and transport materials Retail customers use Class III trucks to move pallets of goods to their store aisles Class IV 1 ton – 7 tons Internal combustion engine counterbalanced trucks with cushion tires used indoors in warehousing and manufacturing operations and outdoors on smooth surfaces. Utility, standard and premium models for different customer applications. A customer relies on Class IV trucks to move heavy parts on a pallet from the machining area in a factory to assembly Class V 1 ton – 8 tons Internal combustion engine counterbalanced trucks with pneumatic tires used indoors and outdoors in warehousing and manufacturing operations. Utility, standard and premium models to address different customer applications. A warehouse or manufacturer relies on Class V trucks to move coils of steel from the mill to a storage area Class V Big Trucks 8 ton – 52 tons Internal combustion engine counterbalanced trucks with pneumatic tires used indoors and outdoors in ports and heavy manufacturing operations A port relies on Class V Big Trucks to move containers from the port to a rail area Comprehensive Updated Global Product Line |
43 Key Investment Highlights Leading Market Share in Materials Handling Comprehensive Global Product Line Large Installed Base Worldwide Established Brand Strength Global Independent Dealer Network Long-Term Relationships with Diverse Customer Base Experienced Management Team Modest Leverage & Strong Cash Flow High-Impact Strategic Initiatives Continuous Focus on Product Development and Innovation Worldwide Economies of Scale Highly Flexible, Low Cost Supply Chain and Efficient Operating Structure Global Scope of Manufacturing |