Investor Presentation November 6, 2017 Exhibit 99
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 Hyster-Yale’s reports filed on Forms 8-K (current), 10-Q (quarterly), and 10-K (annual) for information on factors that could cause actual results to differ materially from information in this presentation and for information reconciling financial measures to GAAP. Past performance may not be representative of future results. Guidance noted in the following slides was effective as of the company’s most recent earnings release and conference call (November 3, 2017). Nothing in this presentation should be construed as reaffirming or disaffirming such guidance. This presentation is not an offer to sell or a solicitation of offers to buy any of Hyster-Yale’s securities.
Hyster-Yale at a Glance Hyster-Yale Materials Handling, Inc. (NYSE:HY) is a leading globally integrated, full-line lift truck manufacturer offering a broad array of solutions aimed at meeting the specific materials handling needs of its customers. _____________________ EBITDA and ROTCE are non-GAAP measures and should not be considered in isolation or as a substitute for GAAP measures. See non-GAAP explanations and the related reconciliations to GAAP measures in the Financial Appendix starting on page 27. Key Metrics In millions (except employee data) LTM 9/30/17 Lift Truck Nuvera Bolzoni Revenue $2,624.7 $3.9 $168.3 Net Income (loss) $84.0 $(24.5) $4.9 EBITDA(1) $141.9 $(39.1) $18.1 ROTCE(1) (Net debt basis) 20.2% n/m 3.5% Net Debt at end of period $18.5 n/m $38.0 Approximate # of Employees (globally) 5,700 200 800 LTM 9/30/17 Sales by Segment Separate lift truck, attachment and hydrogen power segments
4 Solutions that DRIVE Productivity Forklifts Internal Combustion Engine Lithium-Ion Reach Stackers Big Trucks Very Narrow Aisle Trucks Hyster-Yale is a Full-Line Lift Truck Supplier… Electric Counterbalanced Rider Trucks Electric Narrow Aisle Trucks Electric Hand Trucks Internal Combustion Engine (cushion tire) Internal Combustion Engine (pneumatic tire) 3 wheel Electric 4 wheel Electric Pallet Trucks Stackers Order Pickers Reach Trucks Empty / Laden CLASS 1 CLASS 2 CLASS 3 CLASS 4 CLASS 5 1.0T to 5.5T 1.5T to 6.0T 1.5T to 8.0T 1.0T to 7.0T 1.0T to 52.0T Warehouse Equipment Warehouse Equipment Over 280 different truck models available Electric CB Electric CB Container Handlers Internal Combustion Engine Counterbalance |
…with a Broad Range of Power Options, Attachments and Solutions Electric Counterbalanced Rider Trucks Electric Narrow Aisle Trucks Electric Hand Trucks Internal Combustion Engine (cushion tire) Internal Combustion Engine (pneumatic tire) CLASS 1, 2 & 3 Lead-Acid Battery Fuel Cell Engine LPG & Bi-fuel Diesel Tier 3 / Stage III LPG & CNG Diesel Tier 4 / Stage IV Lithium-ion Battery CLASS 4 & 5 Power Options 55,000+ assets under management Technology Architecture Solutions Attachments Clamps Multipallets Rotators Sideshifters Fork Positioners Push Pulls Lifting Tables Forks
Six Key Perspectives to Emphasize Global market unit levels expected to be relatively strong at a high level for next several years Strong recovery underway in key markets and segments that have been depressed 7% operating margin at properly balanced HY factory-produced 115,000 units in this cycle remains Lift Truck business target Programs needed to achieve Lift Truck business target in place; timing of results cannot be forecast with specificity Investments made to reinforce position in Lift Truck business and speed achievement to targeted 115,000 units Nuvera remains a venture business with developed technology; break even pushed out but confidence remains for long-term profitability
Lift Truck Industry Overview (units in thousands) Global Lift Truck Industry Size _____________________ Trend line represents 4.4% long-term CAGR Average Industry Size. Source: WITS. Represents order intake. North America Retail Lift Truck Below Peak Trend _____________________ Source: WITS. LTM 12/31/15 Orders Reports. Long-term CAGR (2004 – 2016) = 4.4% Lift Truck Industry – Unit Distribution by Class _____________________ Source: WITS. LTM 9/30/17 Orders Reports. ICE = Internal Combustion Engine Total Industry = 1,330k Units Class 4 ICE 4% Market Size - $ _____________________ Source: Internal Company estimates Market Size - Units Class 5 ICE 54% Class 1 Electric 20% Class 2 Electric 13% Class 3 Electric 9% Estimated Industry Revenue Mix _____________________ Source: WITS. LTM 9/30/17 Orders Reports. Global Lift Truck Industry Breakdown (Units) Trend Upper Limit Lower Limit NA
Japan Western Europe Eastern Europe Brazil North America Middle East & Africa Latin America (excluding Brazil) Asia (excluding China & Japan) China ( 3 & 12 months rate of change trend) Global Lift Truck Market Rates of Change _____________________ Source: WITS. Bookings Reports.
A Positive Profitability Trend ($ in millions) 7% OPERATING PROFIT MARGIN TARGET 4.0% Gap 3.1% Gap Key Variables Impacting Performance Impact on HY 2016 2017 Market Cycle by Country _ + Market Size by Industry _ + Market Size by Product _ = / + Commodity Prices = _ Pricing _ + Strength of Dollar _ = Operational Effectiveness = + Core SG&A Expenses _ = Prior Cycle Market Peak
Lift Truck Business Target Economics Goal and Gap to Target Achieve 7% operating profit margin target at the next mid-cycle Target Economics gap closure can be achieved with unit volume… Stronger Industry + Share Growth = Volume Leverage LTM 9/30/17 Gap to Target Economics Actual Lift Truck Operating Profit Margin % 3.9% Margin Variances 0.8% Unit margin 1.1% Parts/other (0.3%) Volume Variances 2.3% Manufacturing variances/other 0.5% Operating Expenses 1.8% Lift Truck Operating Profit Margin % Gap 3.1% Lift Truck Operating Profit Margin % Target 7.0%
Share Gain Drives Our Economic Engine Basic Business Areas Our strategies are designed to drive increased share, which in turn increases the lift truck population, which drives parts and service volumes. Geographic and Product Balance Worldwide Distribution Strength to Drive Market Share Parts and Service Volume Large Lift Truck Population in Service Volume Economies of Scale Design Component Commonality Supply Chain Manufacturing Quality Marketing Parts Infrastructure Capital Requirements Improve Warehouse Position Enhance Independent Distribution Succeed in Asia Enhance Big Truck Market Position Strengthen the Sales and Marketing Organization Low Cost of Ownership Understand Customer Needs Hyster-Yale’s economic engine is driven by increasing unit volume and economies of scale. Core strategic initiatives were designed to drive the economic engine by increasing share... Leverage Solutions and Technology Drivers A large lift truck population base drives parts and service volume resulting in enhanced profitability for Hyster-Yale and dealers
Hydrogen-Powered Lift Truck Advantages & Opportunities N. America electric trucks sold per year 150,000+ 25-50% Estimated up to can benefit from Fuel cell solutions Global 700,000+ electric trucks sold per year DOE reported N. America Constant power As quick as 3 minute refuel Operator productivity gains Environmentally clean No batteries / battery charging rooms Lead to Lower Cost of Ownership Population of Fuel Cell Powered Lift Trucks in North America DOE Hydrogen and Fuel Cells Program Record Record #: 17003 Date: 5/25/2017 Benefits Growth Opportunities Strategy: Establish production of “best in class” fuel cells for material handling industry Engage strength of existing global lift truck distribution network to increase penetration of the fuel cell market through converting existing fuel cell users, increasing penetration of existing lead-acid battery users and building new markets with existing ICE truck users Trend in population of fuel cell powered lift trucks in North America expected to continue
Companies Using Hydrogen Fuel Cells in Forklift Operations Amazon Walmart Sysco Foods Ace Hardware Associated Wholesale Grocers Baldor Specialty Foods BMW Bridgestone Canadian Tire Carter’s Central Grocers Coca-Cola CVS EARP Distribution FedEx General Motors Golden State Foods The Home Depot Honda IKEA Kimberly-Clark/GENCO Kroger Co. Lowe’s LPC Martignetti Martin Brower Mercedes Nestlé Waters Newark Farmers Market Nissan North America Proctor & Gamble Stihl Testa Produce Unified Grocers United Natural Foods U.S. Foodservice U.S. Postal Service Volkswagen Wegmans Whole Foods Market WinCo Foods
Purchased for a small investment Investing pre-tax expense dollars to commercialize fuel cell technology Solutions span Hydrogen Value Chain Strong IP / Patent portfolio Pipeline of new technologies Provides strong base for entry into other industries Nuvera’s association with HY provides: Industry and customer expertise Strong distribution channel leverage Financial stability Financing options through HYG Financial Services Product validation process Supply chain leverage and expertise No longer one player niche market Growing power source alternative for lift trucks The Nuvera Story Ace Hardware Bals BMW Canadian Tire Central Grocers Coca-Cola CVS FedEx Golden State Foods Home Depot Honda IKEA Kroger Lowes Existing Users Gen1 Drop-In BBR / Integrated Solution Gen2 Fuel Cell Hybrid Truck Engine / Integrated Solution Approximate Engine Power Requirement [kW] 1-3 3-10 10-20 20-30 30-50 50-150
Business Reconfiguration – Fuel Cell Lift Truck Business Design of Fuel Cell Stacks and Engines Reliability Growth Engineering Manufacture of Fuel Cell Stacks and Engines Sales & Marketing to OEM’s and Partners Development of Hydrogen Compression Technology & Products Design of BBR and Integrated Solutions Reliability Growth Engineering Manufacture of BBR and Integrated Solutions Sales & Marketing Product Support in Field
The Nuvera Plan 2018 + Development of supply chain Increase Mean Time Between Failure (MTBF) to industry leading levels Ramp up in fuel cell stack and engine production Launch of Orion® 2 fuel cell stack with increased power density and lower cost Execute partner opportunities Expansion into EMEA and JAPIC markets Launch of advanced hydrogen compression technology beyond 2020 Target break even by quarter in late 2019 Profitability at or above Hyster-Yale target economics over longer term At At Lift Truck Business Build out sales, marketing and product support Complete product line-up of Battery Box Replacements (BBR) Ramp up in production of BBR and integrated solutions at Greenville, NC plant Continued focus on reducing cost of product to target costs Expansion into EMEA and JAPIC markets Profitability at or above Hyster-Yale target economics over longer term
Bolzoni Bolzoni is one of the worldwide leading manufacturers of lift truck attachments, forks and lift tables with an extensive product range LTM Q3 2017 Sales by Region Managed as separate business segment Separation to maintain OEM information integrity 2016 CUSTOMER MIX Lift Truck Manufacturers – OEM Dealers of Lift Trucks & Material Handling MARKET – INDUSTRIES Logistics Automotive Food & Beverage Pulp & Paper Appliances & Electronics Other Material Handling Synergy Opportunities Stand-Alone Supplier Preferred supplier to HY Arms-length sales Commercial confidentiality Key supplier partner Purchasing leverage Broader market access Part of Hyster-Yale Growth of Attachment Business in Americas Leveraging HY strength in core industries Component resourcing and purchasing leverage Bolzoni as global supplier of forks & basic attachments to HY globally Convert business from other suppliers to Bolzoni Reduce purchase price of core components HY leverage of available Bolzoni manufacturing capacity
HY Path for Future Growth Includes Other Important Elements… GROWTH Through Core Lift Truck Business Share Gain Through Acquisition Through Partnership Through Investment in New Technologies Fuel Cells Automation Telematics
Strategy Roadmap for Share Gain Through New Account Acquisition Facilitating Structures Account Identification teams in each region New CRM/CPQ global tool Application Centers Industry Strategies / Application Guides Special Truck Engineering for rapid product customization Industry / Customer Focus Industry cluster identification Customers by cluster identification (80/20 rule) Targeted messaging Disciplined contact management Established base position and grow penetration over time One-by- One Customer Focus Share Gain Drivers Products & Solutions Focus Industry Focus Geographic Focus
Lift Truck Volume Leverage & Target Economics Incremental Units Produced +5,000 Trucks Sales $156m Gross Profit $34m Operating Expenses $10m Operating Profit $24m Incremental Operating Profit % 15.2% As we make progress toward the 115,000 unit production levels, the Lift Truck business will generate significant incremental operating profit contribution Importance of volume growth to reaching target Investor Day KCS Slide: Target Results Use only the HY Lift Truck Target on a single slide 42626 Will use a bullet point slide to describe Target to Nuvera and Bolzoni Lift Trucks Sold 124000 Lift Trucks Produced in HY plants 115000 Revenues $3,590m 100 189 Gross Profit $640m 25 0 Operating Expenses $390m -25 0 Operating Profit $250m 0 13.8 0 7.301587301587302E-2 Operating Margin 7.7% 2 22.200000000000003
2017 Third Quarter and Outlook 2017 Third Quarter Highlights 2017 Third Quarter LTM 9/30/17 Results Margins $ / % r from Q3 16 Results Margins Consolidated Revenue $691.1(1) 100.0% $61.8/ 9.8% $2,780.3(1) 100.0% Consolidated Operating Profit $17.9 2.6% $12.5 / 231.5% $68.0 2.4% Consolidated Net Income $16.5 2.4% $4.2 / 34.1% $63.2 2.3% EBITDA(4) $30.5 4.4% $10.6 / 53.3% $120.4 4.3% Lift Truck Operating Profit $24.1 3.7%(3) $3.6 / 17.6% $102.6 3.9%(3) Bolzoni Operating Profit $2.1(2) 4.7%(3) $4.6/ n/m $6.6(2) 3.9%(3) Nuvera Operating Loss $(8.1) n/m(3) n/m $(40.7) n/m(3) ($ in millions) 2017 and 2018 Outlook LIFT TRUCK Revenues increased 9.6%, shipments increased 8.4% over Q3 2016 Strong bookings and ending backlog Benefits of higher unit shipments and price increases, net of material cost inflation, were partly offset by higher operating expenses BOLZONI Revenues increased 22.4% over Q3 2016 NUVERA Nuvera realignment progressing Operating loss of $8.1m decreased from both Q2 2017 and Q3 2016 _____________________ Revenues: Lift Truck $652.3m ( LTM $2,624.7m), Bolzoni $44.3m (LTM $168.3m), Nuvera $0.3m (LTM $3.9m) Bolzoni Q3 & LTM Operating Profit includes $1.4m and $4.3m, respectively of amortization on acquired assets Operating Profit (Loss) Margin % is calculated based on the respective business segment’s revenues for the respective period. EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. See non-GAAP explanations and the related reconciliations to GAAP measures in the Financial Appendix starting on page 27 LIFT TRUCK Global market expected to maintain strength in Q4 2017, 2018 comparable to 2017 Sales volumes and unit & parts revenues expected to increase Q4 2017 and 2018 Operating profit expected to increase in Q4 2017, moderate increase in 2018 Q4 2017 net income comparable to Q4 2016, 2018 net income expected to decrease modestly on higher effective income tax rate BOLZONI Revenues expected to increase in Q4 2017 over Q4 2016 Substantial growth in operating profit and net income over Q4 2016 Revenues, operating profit and net income improvement expected in 2018 over 2017 NUVERA Realignment continuing to progress as expected Target break even by quarter in late 2019
Hyster-Yale Use of Cash Priorities Strategic initiatives to accelerate growth or enhance margins Acquisitions of technologies and other forklift-related businesses, including Bolzoni Investments to commercialize Nuvera’s technology 2015 2016 YTD 2017 Annual Dividends (1) $18.4m $1.14/share $19.2m $1.18/share $14.8m $1.21/share 2012 to 2014 Share Buyback $49.8m / 694,653 shares of Class A common stock (1) Dollars represent total dividends paid during calendar year, while dividend per share represents the annualized dividend rate after each May increase in 2015, 2016 and 2017 Investments in Core Lift Truck Business Investments in Hydrogen Power Business Return Cash to Stockholders Investments in Adjacent or Complementary Businesses Investments in Share Gain Programs
by selling and producing 115,000 HY-factory trucks In Summary, Over the Next Few Years…. Get to approximately $3.6 billion HY Lift Truck segment revenue irrespective of industry size to Fill existing assembly line capacity through Significant share growth Which leverages Technology accelerators and business acquisitions
Valuation Approach Needs to Vary By Business Lift Truck and Attachment Businesses Hydrogen Power Business Board Oversight as Separate Businesses Incentives Tied to Individual Businesses Strong Operating Cash Generation Market Leading Products and Position Mature Cyclical Industry Value using Traditional Valuation Model of EBITDA Multiple on a Net Debt Basis Multiple should reflect ROIC levels and growth prospects Developing / Technology Industry Distinct Technology / Patents in Fuel Cell and Hydrogen Generation Operating Cash Invested in New Product Commercialization / Ramp Up Value as Venture Business with Developed Technology
A Solid Investment Option HYSTER-YALE Strong Balance Sheet Cash Generation & Commitment to Shareholder Return Investment & Growth in Game Changing Technologies Leading Products & Market Position Strategies to Gain Share in all Segments & Markets Customer Focused & Solutions Oriented Strong Return on Capital
Financial Appendix Appendix
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: EBITDA is defined as income (loss) before income taxes and noncontrolling interest income (loss) plus net interest expense and depreciation and amortization expense; Return on total capital employed (“ROTCE”) is defined as net income (loss) before interest expense, after tax, divided by average capital employed. Average capital employed is defined as average stockholders’ equity plus average debt less average cash. For reconciliations from GAAP measurements to non-GAAP measurements, see the following pages.
Non-GAAP Reconciliation _____________________ Note: EBITDA in this investor presentation is provided solely as a supplemental disclosure with respect to operating results. EBITDA does not represent net income (loss), 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. The Company defines EBITDA as income (loss) before income taxes and noncontrolling interest income (loss) 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. ($ in millions) Year Ended December 31 Qtr. Trailing 12 Months Consolidated 2013 2014 2015 2016 9/30/17 9/30/17 Reconciliation of EBITDA Net income attributable to stockholders $ 110.0 $ 109.8 $ 74.7 $ 42.8 $ 16.5 $ 63.2 Noncontrolling interest income (loss) 0.2 0.4 0.4 (0.5) 0.2 0.1 Income tax provision (benefit) 17.2 39.9 29.4 (4.0) (0.8) 5.9 Interest expense 9.0 3.9 4.7 6.7 6.2 12.3 Interest income (1.8) (1.1) (1.5) (2.0) (2.0) (3.2) Depreciation and amortization expense 30.2 29.7 28.9 39.1 10.4 42.1 EBITDA $ 164.8 $ 182.6 $ 136.6 $ 82.1 $ 30.5 $ 120.4 ($ in millions) Year Ended December 31 Qtr. Trailing 12 Months Lift Truck 2013 2014 2015 2016 9/30/17 9/30/17 Reconciliation of EBITDA Net income attributable to stockholders $ 110.0 $ 111.2 $ 89.3 $ 66.9 $ 19.7 $ 84.0 Noncontrolling interest income (loss) 0.2 0.4 0.4 (0.5) - (0.5) Income tax provision 17.2 40.7 39.4 12.2 2.6 20.7 Interest expense 9.0 3.9 4.7 6.9 6.1 11.9 Interest income (1.8) (1.1) (1.5) (3.0) (2.1) (3.6) Depreciation and amortization expense 30.2 29.6 27.3 28.1 7.3 29.4 EBITDA $ 164.8 $ 184.7 $ 159.6 $ 110.6 $ 33.6 $ 141.9
Non-GAAP Reconciliation (continued) _____________________ Note: EBITDA in this investor presentation is provided solely as a supplemental disclosure with respect to operating results. EBITDA does not represent net income (loss), 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. The Company defines EBITDA as income (loss) before income taxes and noncontrolling interest income (loss) 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. ($ in millions) Year Ended December 31 Qtr. Trailing 12 Months Nuvera 2014 2015 2016 9/30/17 9/30/17 Reconciliation of EBITDA Net loss attributable to stockholders $ (1.4) $ (14.6) $ (23.8) $ (4.9) $ (24.5) Noncontrolling interest income - - - - - Income tax benefit (0.8) (10.0) (15.8) (3.2) (16.2) Interest expense - - - - - Interest income - - - - - Depreciation and amortization expense 0.1 1.6 1.5 0.4 1.6 EBITDA $ (2.1) $ (23.0) $ (38.1) $ (7.7) $ (39.1) Qtr. Trailing 12 Months ($ in millions) Bolzoni 9/30/17 9/30/17 Reconciliation of EBITDA Net income attributable to stockholders $ 1.9 $ 4.9 Noncontrolling interest income 0.2 0.6 Income tax provision (benefit) (0.2) 0.7 Interest expense 0.2 0.8 Interest income - - Depreciation and amortization expense 2.7 11.1 EBITDA $ 4.8 $ 18.1
Non-GAAP Reconciliation (continued) _____________________ 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. (1) Lift Truck return on capital employed excludes the average initial investment of $99.3 million for the acquisition of Bolzoni and continuing average investments of $69.1 million in Nuvera. Investment numbers are based on a 5-point average. Reconciliation of Return on Total Capital Employed (ROTCE) Consolidated Lift Truck(1) Nuvera Bolzoni LTM 9/30/17 LTM 9/30/17 LTM 9/30/17 LTM 9/30/17 Average Stockholders' Equity (9/30/17, 6/30/17, 3/31/17, 12/31/16, and 9/30/16) $506.9 $555.2 $21.5 $109.8 Average Debt (9/30/17, 6/30/17, 3/31/17, 12/31/16, and 9/30/16) 220.3 178.5 2.3 53.8 Average Cash (9/30/17, 6/30/17, 3/31/17, 12/31/16, and 9/30/16) (134.3) (292.3) - (10.2) Average capital employed $592.9 $441.4 $23.8 $153.4 Net income (loss) $63.2 $84.0 $(24.5) $4.9 Plus: Interest expense, net 9.1 8.3 - 0.8 Less: Income taxes on interest expense, net at 38% (3.5) (3.2) - (0.3) Actual return on capital employed = actual net income (loss) before interest expense, net, after tax $68.8 $89.1 $(24.5) $5.4 Actual return on capital employed percentage 11.6% 20.2% n/m 3.5% ($ in millions)
Cash Flow before Financing Calculation .. Consolidated ($ in millions) Year Ended December 31 Qtr. Trailing 12 Months 2013 2014 2015 2016 9/30/17 9/30/17 Reconciliation of Cash Flow before Financing Net cash provided by (used for) operating activities $152.9 $100.0 $89.4 $(48.9) $17.0 $85.5 Net cash used for investing activities (26.1) (44.4) (31.3) (145.1) (7.9) (49.2) Cash Flow before Financing $126.8 $55.6 $58.1 $(194.0) $9.1 $36.3
Supplemental Information Appendix
Hyster founded in Portland Oregon as the Willamette Ersted Company 1929 1944 1959 Company name officially changed to Hyster Company First Hyster container handling trucks 1875 1920 Yale Lock Mfg. broadens its scope into materials handling Yale and Towne launched a new battery powered low-lift platform truck 1963 Yale forklift truck business merges with Eaton Mfg. Industrial Truck Division 1950 Yale added gas, LP gas and diesel-powered fork lift trucks to its range Hyster introduces the famous Monotrol® pedal 1971 Yale forges a partnership with Sumitomo Ltd 2011 NMHG introduces the UTILEV® lift truck for the utility segment of the market 2016 1985 Yale acquired by NACCO Industries 1989 Hyster acquired by NACCO Industries NMHG renamed Hyster-Yale Group HY completes acquisition of 100% of Bolzoni S.p.A. The History of Hyster-Yale and its brands 1989 2012 Hyster-Yale formed as independent public company following spin-off by NACCO 2014 NMHG, HY’s operating company, acquires Nuvera to enter the fast-growing hydrogen fuel cell market Hyster and Yale merge to form NACCO Materials Handling Group (NMHG)
Hyster-Yale’s Global Footprint Ramos Arizpé, Mexico Fabrication Manufacture Sulligent, Alabama Component Manufacture Berea, Kentucky Lift Truck Manufacture Greenville, North Carolina Division Headquarters; Lift Truck Manufacture; Warehouse Development Center Cleveland, Ohio Corporate Headquarters Danville, Illinois Parts Distribution Center Charlotte, North Carolina Experience Center Barueri, Brazil Brazil Marketing and Administration Center Itu, Brazil Lift Truck Manufacture; Parts Distribution Center Craigavon, N. Ireland Lift Truck Manufacture Nijmegen, Netherlands Lift Truck Manufacture; Big Truck Development Center; Parts Distribution Center Masate, Italy Lift Truck Manufacture; European Warehouse Development Center Shanghai, China (JV) Lift Truck Manufacture; Parts Distribution; China Marketing and Administration Center Obu, Japan (JV) Lift Truck Manufacture; Parts Distribution Cavite, Philippines (JV) Fabrication Manufacture Irvine, Scotland European Administration Center Hanoi, Vietnam (JV) Component Manufacture Sydney, Australia Division Headquarters; Parts Distribution Pune, India Engineering, Supply Chain and Marketing Center Frimley, UK Division Headquarters; Engineering Concept Centre Kuala Lumpur, Malaysia Asia Support Office Hefei, China Supply Chain Center Fairview, Oregon Counterbalanced Development Center; Administration Center San Donato, Italy European Offices; Research & Development; Testing Facilities Billerica, Massachusetts Hydrogen Power Business Headquarters; Research and Development; Manufacturing and Sales Homewood, Illinois Attachment Manufacture Piacenza, Italy Bolzoni Headquarters; Attachment, Lift Table and Fork Manufacture Järvenpää, Finland Attachment Manufacture Salzgitter, Germany Attachment Manufacture Wuxi, China Attachment Manufacture Hebei, China Fork Manufacture Pointe-Claire, Canada Commercial Subsidiary Prestons, Australia Commercial Subsidiary Warrington, UK Commercial Subsidiary Montcarda/Reixac, Spain Commercial Subsidiary Forbach, France Commercial Subsidiary Prato, Italy Attachment Manufacture Lublin, Poland Commercial Subsidiary Moscow, Russia Commercial Subsidiary Korschenbroich, Germany Commercial Subsidiary Gävle, Sweden Commercial Subsidiary Helmond, Netherlands Commercial Subsidiary Lift Truck Business locations Hydrogen Power Business (Nuvera) locations Attachment Business (Bolzoni) locations Global Headquarters LEGEND: Tyler, Texas HY Telematics Chessy, France Commercial Offices Neu-Isenburg, Germany Commercial Offices Weeze, Germany Experience & Test Center
Lift Truck Overview and Sources of Revenue 2016 Worldwide Sales by Product _____________________ Represents Hyster-Yale North American Lift Truck unit shipments by industry. Includes Big Truck sales that represent 10.9% of total sales. Bolzoni revenues of $115.6 million included in parts. A leading global lift truck manufacturer in terms of units sold 2016 Retail Shipments by End Market (1) #4 Globally in 2016 Large installed base that drives parts sales Over 827,000 units worldwide at 12/31/16 HY sales of 90,400 units in LTM 9/30/17 84,000 units sold - produced in HY plants 6,400 units sold – produced by JV or other third parties Additional >6,300 units sold in Japan in 2016 Direct sales by JV partner (2) 2016 Distribution Channel Mix
Historical Consolidated Revenue ’04 – ’16: 1.9% CAGR ($ in millions)
37 Solutions that DRIVE Productivity Class 1 Electric 20% Class 2 Electric 10% Class 3 Electric 7% Class 4 ICE 13% Class 5 ICE 50% Industry Units by Geography Lift Truck Unit Class Shipments Europe 34% Americas 22% China 27% Japan 6% Asia- Pacific 7% Middle East & Africa 4% _____________________ Source: Company: LTM 9/30/17 Units Shipped Note: Units sold direct by SN JV are not included HY Lift Truck Units Sold by Geography Americas 62% EMEA 31% Asia- Pacific/ Japan 4% China 3% _____________________ Source: WITS. LTM 9/30/17 Orders Reports. Class 1 Electric 17% Class 2 Electric 10% Class 3 Electric 34% Class 4 ICE 3% Class 5 ICE 36% _____________________ Source: WITS. LTM 9/30/17 Orders Reports. ICE = Internal Combustion Engine Class 1 Electric 20% Class 2 Electric 10% Class 3 Electric 29% Class 4 ICE 10% Class 5 ICE 32% _____________________ Source: Company: LTM 9/30/17 Units Shipped Note: Units sold direct by SN JV are not included ICE = Internal Combustion Engine Industry Units by Class HY Lift Truck Units by Class Class 1 Electric 20% Class 2 Electric 13% Class 3 Electric 9% Class 4 ICE 4% Class 5 ICE 54% _____________________ Source: Internal Company estimates Estimated Industry Revenue Mix Industry Unit Revenue by Class HY Lift Truck Unit Revenue by Class _____________________ Source: Company: LTM 9/30/17 Unit Revenues |
Lift Truck Market Size Data Lift Truck Market Size Data WITS Orders Basis (1) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Europe 265,896 278,024 312,455 327,173 380,557 445,583 411,107 222,883 299,387 368,286 North America 147,322 155,191 186,192 198,058 212,953 191,384 159,279 98,338 136,050 169,589 Total Americas 158,388 168,471 206,225 221,155 242,186 234,353 200,178 118,835 180,903 224,501 A/P, China and Japan (1a) 138,452 155,094 185,530 201,062 232,438 271,018 260,246 205,114 314,162 381,795 Global Market 562,736 601,589 704,210 749,390 855,181 950,954 871,531 546,832 794,452 974,582 2012 2013 2014 2015 2016 2017E Europe 351,441 357,452 387,905 412,642 457,333 501,000 North America 181,191 200,939 219,444 235,128 240,836 242,000 Total Americas 229,565 252,930 267,546 277,315 280,827 274,000 A/P, China and Japan (1a) 363,399 399,395 438,510 409,923 443,938 549,000 Global Market 944,405 1,009,777 1,093,961 1,099,880 1,182,098 1,324,000 (1) In 2009, Hyster-Yale switched to tracking Industry data on a World Industrial Truck Statistics ("WITS") Orders Basis. WITS statistics began in 2002. (1a) Beginning in 2014 includes India local production Industry forecast (light blue columns) – source: Derived from DRI-WEFA and Oxford Economic Forecasts 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Europe (FEM/JIVA) (3) 150,250 121,922 135,318 152,667 174,953 176,294 187,902 219,615 227,697 274,681 North America (2) (3) 106,590 120,679 154,167 162,725 152,763 178,456 192,192 197,436 205,033 145,967 Total Americas (2) (3) 114,411 127,308 162,261 171,682 168,170 193,413 207,018 209,843 223,499 161,316 A/P, China and Japan (3) 134,635 123,913 119,733 135,050 148,135 148,441 111,848 104,781 122,354 123,780 2002 2003 2004 2005 2006 2007 2008 2009 Europe (FEM/JIVA) (3) 256,717 263,972 286,546 302,158 337,326 382,047 376,945 201,352 North America (2) (3) 144,529 151,911 182,450 194,475 207,919 185,726 149,863 95,562 Total Americas (2) (3) 156,702 166,328 203,552 218,908 238,141 229,509 192,134 115,752 A/P, China and Japan (3) 129,333 146,334 171,000 195,386 222,074 250,684 257,604 199,159 Non-WITS Prior Year Information: Lift truck market size history – source: Industrial Truck Association, Japan Industrials Vehicle Association ("JIVA"), European Federation of Materials Handling ("FEM"), World Industrial Truck Association (2) Total Americas numbers for 1992-2008 include North America Commercial, Government and Latin America. Prior years are North America Commercial only. (3) Industry information is based upon the reporting basis of each individual region, which varies according to the industry trade groups in that region: Americas - North America & Government - Retail bookings Americas - Latin America - Factory bookings Europe & Japan - Factory shipments A/P & China - Factory bookings
39 Solutions that DRIVE Productivity Our Long-Term Philosophy Long-term growth Long-term shareholders Shareholder protection Senior management incentivized as long-term shareholders Increase shareholder value Return on Capital Employed and Market Share Increase focus |
40 Solutions that DRIVE Productivity Product Philosophy • Full product line • Segmented solutions • Scalable modular platforms • Leverage core assets • Technology partners • Fit for market and application • Reliability and durability • Energy efficiency • Operator productivity • Support growth initiatives • Fill the factories • Differentiation • Innovation Guiding Product Philosophy Guiding Product Philosophy Key Product Attributes Key Product Attributes Product Portfolio Focus Product Portfolio Focus |
41 Solutions that DRIVE Productivity Core Strategic Initiatives Update Highlights Initiative Highlights Strategic Objective • Provide the right product and solution to meet the specific needs of different customers by industry segments • Understand industry trends, key drivers and applications by segment • Product fit for application • Premium, Standard and Utility products • Unique innovations • Leverage automation partnership & telemetry • Leverage Bolzoni relationship • Market leadership in U.S., such as heavy duty industries, e.g. Paper, Automotive • Growing success in trucking industry and beverage industries Understand Customer Needs Strategic Objective • Deliver lowest cost of ownership for all customers based on their specific application Initiative Low Cost of Ownership • Improved fuel / energy consumption • Engine to electric conversion • Expanding data services on growing number of telemetry systems (30K+) • Leverage Fleet Management Solution for Cost Compression Outcome: Win in Targeted Major Accounts and Applications Outcome: Competitive Advantage across Product Segments |
Core Strategic Initiatives Update Initiative Initiative Strategic Objective Highlights Develop the strongest independent, exclusive dealer network Enhance Independent Distribution Strategic Objective Highlights Strengthen penetration of the growing warehouse segment Improve Warehouse Position Significant strengthening in core U.S. market Growth of dual-brand coverage New dealers appointed in EMEA Enhanced dealer profitability Excellence programs in all theaters Outcome: Best Distribution Channels in the Industry Outcome: Be a Top Tier Global Competitor in Warehouse Major wins in marquee accounts Continued success penetrating Food & Beverage and Retail accounts New products, including new End Rider Industry specialization sales training regimen Dealers investing in industry specialization Expanding industry-focused direct sales force Increase in dealer competence via Warehouse Academy
Core Strategic Initiatives Update Strategic Objective Highlights Initiative Succeed in Asia Strategic Objective Highlights Initiative Enhance Big Truck Market Position Expand market penetration throughout Asia Increase leading market position and become supplier of choice in Big Truck segment Outcome: Increase Share and Strengthen Distribution at Accelerated Pace Outcome: Enhance leading market position in Big Trucks Successful new product launches Heart-of-market products under development Diesel to Electric solutions Increased success with large port operators Focus on industry and solutions Distributing large cushion tire products (RICO) in the U.S. Deployed improved organization structure and global sales processes Development of long-term strategic partnerships Improved product line-up for China and India through localization Big Truck growth in Southeast Asia Appointed new national dealer in India
Core Strategic Initiatives Update Strategic Objective Highlights Initiative Strengthen Sales and Marketing Organization Strengthen and align sales and marketing organization in all geographic regions Outcome: Gain momentum leading to higher unit volumes and enhanced market share Expanding industry-focused direct-selling teams in all regions Enhancing solutions selling skills Building industry-focused cross functional teams to execute action plans and improve customer and dealer satisfaction Increasing global account focus Leverage Solutions & Technology Drivers Development of Nuvera fuel cell engines and hydrogen generation units Developing Lithium-ion strategies Partnership with BALYO (automation) Offering factory fit of specialized Bolzoni attachments Strengthening HY's telematics offering Become a one-stop materials handling solutions provider Outcome: Increase business from existing customers and new customers attracted to HY’s integrated solutions Strategic Objective Highlights Initiative
Our Investment in R&D Full Product Line* Lift Truck R&D Investment * Full Product Line – Class 1 through Class 5, including Big Truck 2.8% 2.6% 2.6% 2.7% 2.9% % of Revenue $ in millions
Cost of Operation / Hour Factors Impacting Low Cost of Ownership *Typical truck cost/hour for 5,000lb North American applications Lease Fleet optimization Service & Repair Cost/hour Fuel Energy usage Mode control Alternative powertrains ICE to ER Telematics Fleet Management Extended Warranty Residuals Price management Cost control Operator Productivity Ergonomics/ fatigue Automated trucks Auto functions
Areas of Focus Telematics Internet of Things Asset management Fleet and truck data Use of telematics Partnered approach Camera and laser-based systems Focus on integration and value proposition Automation Alternative Power Lead acid Lithium ion Fuel cell Diesel LPG Lithium ion Fuel cell Battery Box Solutions Integrated solutions
Bolzoni’s Brands BOLZONI Founded in Italy in 1945, focus on lift truck attachments, forks and lift tables. A leading market position through the development of a worldwide network of subsidiaries and dealers, as well as strategic acquisitions. AURAMO Founded in Finland in 1947, focus on paper roll clamps, bale clamps and other specialized handling attachments. The worldwide recognized paper handling specialist. AURAMO was acquired by BOLZONI Group in 2001. MEYER Founded in Germany in 1953, focus on a wide range of lift truck attachment industry. The worldwide recognized multiple pallet handler inventor. MEYER was acquired by BOLZONI Group in 2006.
LTM Q3 2017 Bolzoni Revenue by Product Line € 152,8 M Other Revenues* € 5,3 M 3% Forks € 20,0 M 13% Lift Table € 8,6 M 6% Attachments € 118,9 M 78% ___________ * Other Revenes – Rental business and Customer care. Note – Revenue by product line and percentages presented represent LTM Q3 2017 revenues in euros.
