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. Forward-looking information noted in the following slides was effective as of the Company’s most recent earnings release and conference call (August 2, 2023). Nothing in this presentation should be construed as reaffirming or disaffirming the outlook provided as of that date. This presentation is not an offer to sell or a solicitation of offers to buy any of Hyster-Yale’s securities.
QUARTERLY OVERVIEW
Our Businesses Hyster-Yale Materials Handling, Inc. (NYSE:HY) is one company with three separately managed businesses FOR EACH BUSINESS Board of Directors n CEO n P&L and balance sheet n Tailored incentive plans Our Attachments Business Bolzoni Our Core Lift Truck Business Hyster-Yale Group Our Fuel Cell Business Nuvera
Key Takeaways – Q2 2023 Strong 2023 Financial Results Expected Backlog value increasing: Avg. sales price/ backlog unit up 23% from Q2 ’22 Backlog units down 19% from ’22 peak: higher shipments and bookings deceleration 64% debt to total capital down 160 bps from Q3 ‘22 peak Improving returns Lower debt levels Financial Leverage Improving Improving Backlog Improving lead times, dissipating supply headwinds and maturing strategic initiatives $58.8M Operating Profit Q2 ’22 loss 38% above Q1 ‘23 $1.1B revenue 22% above Q2‘22 9% above Q1 '23 Growing Results Improving supply chain conditions Positive price-to-cost ratio continues Americas improvement outpacing EMEA and JAPIC Dissipating Headwinds
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. Hyster-Yale at a Glance Q2 2023: Lift Truck Bolzoni Nuvera Revenue $1,038.7 $96.6 $1.0 Operating Profit (Loss) $62.5 $5.4 ($9.2) EBITDA(1) $70.6 $8.2 ($9.0) YTD 6/30/23: Revenue $1,987.4 $195.2 $2.6 Operating Profit (Loss) $110.3 $9.8 ($19.0) EBITDA(1) $129.2 $15.7 ($18.6) Net Debt at end of period ($429.7) ($32.1) ($5.3) Approximate # of Employees (globally) 6,900 1,200 200 Key Metrics In millions (except employee data) _____________________ (1) EBITDA is a 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 Appendix starting on page 56. ~
CAGR (2004 – 2022) = 6.5% _____________________ Source: ITA. Represents quarterly order intake through Q2 2023. (units in thousands) Global Lift Truck Industry Size* _____________________ Trend line represents 6.5% long-term CAGR Average Industry Size. Source: WITS*. Represents annual order intake through 3/31/23. _____________________ Source: WITS* Orders Reports. * WITS Industry Data reported one quarter in arrears. Global Lift Truck Market remains healthy, above pre-pandemic levels North America Retail Lift Truck at Trend Line Trend Upper Limit Lower Limit NA Lift Truck Industry Q1* 23 vs Q1 22, Q2 22, Q3 22 and Q4 22
Lift Truck Unit Class Shipments as of 3/31/23 (Industry / HY) _____________________ Source: Company: LTM 3/31/23 Unit Revenues ICE = Internal Combustion Engine Industry Units by Geography _____________________ Source: WITS*. LTM 3/31/23 Orders Reports. * WITS Industry Data reported one quarter in arrears. _____________________ Source: Internal Company estimates through 3/31/23 HY Lift Truck Unit Revenue by Class HY Lift Truck Units Sold by Geography Industry Unit Revenue by Class Estimated Industry Revenue Mix HY unit sales mix more heavily weighted toward the Americas HY revenue mix weighted toward higher-priced Class 4 & 5 ICE units _____________________ Source: Company: LTM 3/31/23 Units Shipped Note: Units sold direct by SN JV are not included
Impact of Headwinds on HY are Dissipating Supplier component volume shortages Freight costs and constraints Component cost inflation Price-to-Cost Ratio Potential Headwinds Russia/Ukraine conflict expansion Economic Recessionary Trends Q4 21 Q4 21 Q4 21 Q4 21 Q4 22 Q4 22 Q4 22 Q4 22 Q1 23 Q1 23 Q1 23 Q1 23 Marks progress against headwinds: Q4 21 Q4 22 Q1 23 Q2 23 Q2 23 Q2 23 Q2 23 Q2 23 Q3 23 Q3 23 Q3 23 Q3 23 Q3 23
Significantly Improved Q2 2023 Financial Results versus Prior Year ________ (1) 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 Appendix starting on page 56. Shipments Revenues Operating Profit Net Income EBITDA(1) 2,400 units 27,700 $1.1B 22% $58.8M $38.3M $69.9M $74.5M $57.7M $74.8M Substantial financial progress made since Q2 2022 Q2 2023 consolidated revenues exceeded $1 billion, growing 22% over Q2 2022 Growth propelled by higher pricing, increased sales volumes and favorable sales mix shift Improved unit margins drove substantial Q2 2023 profitability improvements versus Q2 2022 losses
($ in millions) Results for Q2 2023 Consolidated vs. Q2 2022 ________ (1) These entities are presented on a stand-alone basis, and as such, do not sum to the Consolidated financial information. (2) 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 Appendix starting on page 56. ($ in millions) Lift Truck Revenue topped $1 billion, growing 23% year-over-year led by volume and price increases as well as mix benefits Better-than-expected operating profit increased substantially over Q2 ’22 loss due to strong sales channel and truck mix and an improving price-to-cost ratio 6% operating profit margin; operating expenses at 11% of sales, in line with prior year's rate Bolzoni Revenues increased 12% while operating profit increased 59% over prior year Profit improvement driven by price increase benefits, higher sales volumes and lower manufacturing costs Nuvera Increased revenues due to higher after-market component and engine sales to the Lift Truck Business Higher product development and employee-related costs offset benefit from increased volumes CONSOLIDATED HY HY Q2 2023 Q2 2022 Variance Shipments 27,700 25,300 2,400 Revenues $1,090.5999999999999 $895.4 $195.19999999999993 Gross Profit $197.9 $99.1 $98.800000000000011 Operating Expenses $-,139.10000000000002 $-,114.8 $-24.300000000000026 Operating Profit (Loss) $58.8 $-15.7 $74.5 Asset Impairment/Inv. Adj. $56.9 $0 $56.9 Adj. Op Profit (Loss) $-50.1 $13.7 $-63.8 Net Income (Loss) $38.299999999999997 $-19.399999999999999 $57.699999999999996 Asset Impairment/Inv. Adj. $45.2 $0 #REF! Val . Allowance Def. Taxes $19.399999999999999 $0 #REF! Adj. Net Income (Loss) $-38.700000000000003 $13.1 #REF! EBITDA(2) $69.900000000000006 $-4.9000000000000004 $74.800000000000011 SEGMENTS Q2 2023 Q2 2023 Q2 2023 Lift Truck(1) Bolzoni(1) Nuvera(1) Revenues $1,038.7 $96.6 $1 Gross Profit (Loss) $177 $22.6 $-1.8 Operating Expenses $-,114.5 $-17.200000000000003 $-7.3999999999999995 Operating Profit (Loss) $62.5 $5.4 $-9.1999999999999993 Asset Impairment/Inv. Adj. $55.6 $0 $1.3 Adj. Op Profit (Loss) $-37.6 $-2.2000000000000002 $-9.6999999999999993 Net Income (Loss) Asset Impairment/Inv. Adj. $43.9 $0 $1.3 Val . Allowance Def. Taxes $12.6 $0.6 $6.2 Adj. Net Income (Loss) $-38.1 $-1.8 $-3.4 EBITDA(2) $70.599999999999994 $8.1999999999999993 $-9 CONSOLIDATED HY HY Q2 2023 Q2 2022 Variance Shipments 27,700 25,300 2,400 Revenues $1,090.5999999999999 $895.4 $195.19999999999993 Gross Profit $197.9 $99.1 $98.800000000000011 Operating Expenses $-,139.10000000000002 $-,114.8 $-24.300000000000026 Operating Profit (Loss) $58.8 $-15.7 $74.5 Asset Impairment/Inv. Adj. $56.9 $0 $56.9 Adj. Op Profit (Loss) $-50.1 $13.7 $-63.8 Net Income (Loss) $38.299999999999997 $-19.399999999999999 $57.699999999999996 Asset Impairment/Inv. Adj. $45.2 $0 #REF! Val . Allowance Def. Taxes $19.399999999999999 $0 #REF! Adj. Net Income (Loss) $-38.700000000000003 $13.1 #REF! EBITDA(2) $69.900000000000006 $-4.9000000000000004 $74.800000000000011 SEGMENTS Q2 2023 Q2 2023 Q2 2023 Lift Truck(1) Bolzoni(1) Nuvera(1) Revenues $1,038.7 $96.6 $1 Gross Profit (Loss) $177 $22.6 $-1.8 Operating Expenses $-,114.5 $-17.200000000000003 $-7.3999999999999995 Operating Profit (Loss) $62.5 $5.4 $-9.1999999999999993 Asset Impairment/Inv. Adj. $55.6 $0 $1.3 Adj. Op Profit (Loss) $-37.6 $-2.2000000000000002 $-9.6999999999999993 Net Income (Loss) Asset Impairment/Inv. Adj. $43.9 $0 $1.3 Val . Allowance Def. Taxes $12.6 $0.6 $6.2 Adj. Net Income (Loss) $-38.1 $-1.8 $-3.4 EBITDA(2) $70.599999999999994 $8.1999999999999993 $-9
Lower operating loss in H2 ‘23 vs. H2 ’22 from higher shipments moderated by increased product development costs Bolzoni Nuvera Significant increase in revenues and operating profit expected in H2 ‘23 vs. H2 ’22 from expected improving margins Lift Truck Strong H2 2023 Outlook Substantial operating profit increase in H2 ’23 over H2 ’22, moderating from H1 ’23 levels due to lower volumes Consolidated H2 2023 profitability expected to increase significantly over H2 2022 Average sales price/backlog unit increased by ~ 23% over Q2 ‘22 and ~ 5% over Q1 ’23 By end of Q2 ’23, worked through essentially all the lower-margin unit backlog booked before price increases implemented Backlog levels expected to drive future performance and support unit margin expansion Avg. Sales Price/ Unit Backlog Bookings Backlog Avg. Sales Price/Unit Backlog **As of June 30, 2023, March 31, 2023 and June 30, 2022, Unit Backlogs were reduced by 2,500 units, 2,600 units and 2,700 units, respectively, while Unit Backlog $ values were reduced by $42 million, $44 million and $45 million, respectively, due to suspended orders from Russian dealers for which the Company currently has no defined fulfillment plans.
Disciplined Approach to Capital Allocation and Cash Usage Return Cash to Stockholders Annual Dividends(1) 2021 2022 YTD 2023 $21.6m $1.29/ share $21.8m $1.29/ share $11.1m $1.30/ share (1) Dollars represent total dividends paid during calendar year, while dividend per share represents the annualized dividend rate after May increase in 2021 and 2023. Unused Borrowing Capacity of ~$216m and ~$66m in Cash @ 6/30/23 Managing capital expenditure timing for strategic initiatives; ongoing cost control focus Inventory reductions remain a key priority Nuvera Investments to commercialize Nuvera fuel cell technology Bolzoni Expense and capital investments in strategic programs to accelerate growth and enhance margins INVESTMENTS Lift Truck Expense and capital investments in strategic programs to accelerate growth and enhance margins Protecting Liquidity in uncertain economic environment ($ in millions) Debt to Total Capital rate improving vs. Q3 ‘22 peak
Bolzoni Strategic Projects Parts and Service Volume Large Lift Truck Population in Service Volume Economies of Scale Geographic and Product Balance Worldwide Distribution Strength to Drive Market Share Be the Leader in Independent Distribution Be the Leader in Independent Distribution Provide Lowest Cost of Ownership, while Enhancing Productivity for Customers Be the Leader in the Delivery of Industry- & Customer-Focused Solutions Be the Leader in the Attachments Business Hyster-Yale has five core strategies to drive growth, with each supported by strategic projects Core Strategies Designed to Drive Economic Engine by Increasing Market Share Be a Leader in Fuel Cells & their Applications Lift Truck Strategic Projects Nuvera Strategic Projects Nuvera Bolzoni Lift Truck Business
Transformational Initiatives Create a Strong Long-Term Investment Option Commercialization of E-45 / E-60 engines globally Development of 360kW and 470kW modular fuel cell-powered generators Development of larger E125 engine Commercial Partnerships Bolzoni Transformation Nuvera Transformation Through key strategic projects, HY is transforming its business using an Industry Approach to achieve financial targets Transformation of Global Business Structure One Company / 3 Brands Growth Projects for Americas (locally-produced products), EMEA (Smart Products) & JAPIC (Silver Line) Industry approach Long-term Focused, not Short-term Oriented Transformative Products Modular & Scalable (1, 2) Low Intensity (1, 2) Technological Accelerators Electrification, Fuel Cell, Telemetry, Automation & Web Presence (1, 2) Transformation of Sales Approach AsOne, HY Impact + HY Flow programs (3) Industry approach (2) Lift Truck Transformation Legend – Core Strategies 1 - Provide Lowest Cost of Ownership, while Enhancing Productivity for Customers 2 - Be the Leader in the Delivery of Industry- & Customer-Focused Solutions 3 - Be the Leader in Independent Distribution
STRATEGIC PERSPECTIVE
Overview
Overview and Sources of Revenue 2022 Worldwide Sales by Product _____________________ Includes Big Truck sales that represent 9% of total sales. Represents Hyster-Yale North American Lift Truck unit shipments by industry. A leading global lift truck manufacturer 2022 Retail Lift Truck Shipments by End Market (2) Large installed population that drives parts sales ~ 990,000 lift truck units worldwide at 12/31/22 HY sales of ~ 105,200 lift truck units in LTM 6/30/23 ~79,900 units sold – produced in HY plants ~14,900 units sold – produced by HY Maximal ~10,400 units sold – produced by JV or other third parties Additional ~ 8,000 lift truck units sold in 2022 by Sumitomo- NACCO JV (1) 2022 Lift Truck Distribution Channel Mix
Reach Truck Internal Combustion Engine Reach Trucks Counterbalance 4-wheel Diesel Forklift Port Machinery ICE Warehouse Equipment Electric Internal Combustion Engine Lithium-Ion Very Narrow Aisle Trucks Full Lift Truck Product Line - Over 600 Different Truck Models Available…. Electric Counterbalanced Rider Trucks Electric Narrow Aisle Trucks Electric Hand Trucks ICE (cushion tire) Internal Combustion Engine (ICE) (pneumatic tire) 3-wheel Electric 4-wheel Electric Stackers Order Pickers CLASS 1 CLASS 2 CLASS 3 CLASS 4 CLASS 5 1.5T to 8.0T 1.5T to 6.0T 1.5T to 8.0T 1.5T to 7.0T 1.5T to 52.0T 1.5T to 5.0T 1.0T to 2.0T 1.0T to 2.0T 1.5T to 45.0T CLASS 1 CLASS 2 CLASS 3 CLASS 5 Empty Container Handler Reach Stacker Rough Terrain Forklift Very Narrow Aisle Truck 3-wheel Hyster® & Yale® ~ 380 models HY Maximal ~ 250 models Stacker Pallet Truck Gas & LPG Forklift OTHER End Rider Reach Stackers Big Trucks Laden / Empty Container Handlers Electric CB Warehouse Equipment Note: Approximate model count is as of 6/30/2023 Side Loader
…with a Broad Range of Power Options, Attachments and Solutions Push Pulls Lifting Tables Clamps Multipallets Rotators Sideshifters Fork Positioners Forks 72,000+ assets under management Attachments 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 Fuel Cell Engine LPG, Bi-Fuel, CNG EPA LSI / Stage V Diesel GB III / Stage III Diesel Tier 4 / Stage V CLASS 4 & 5 Power Options Lithium-ion Battery Lead-Acid Battery Note: Approximate assets under management count is as of 6/30/2023
Hyster-Yale has a Global Footprint Ramos Arizpé, Mexico Fabrication Manufacture Sulligent, Alabama Attachment and Component Manufacture Berea, Kentucky Lift Truck Manufacture Greenville, North Carolina Division Headquarters; Lift Truck Manufacture; Warehouse Development Center Cleveland, Ohio Corporate Headquarters 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 Obu, Japan (JV) Lift Truck Manufacture; Parts Distribution Hanoi, Vietnam (JV) Component Manufacture Pune, India Engineering, Supply Chain and Marketing Center Frimley, UK Division Headquarters; Engineering Concept Centre Fairview, Oregon Counterbalanced Development Center; Administration Center Billerica, Massachusetts Fuel Cell Business Headquarters; Research and Development; Manufacturing and Sales 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 Lift Truck Business locations Fuel Cell Business (Nuvera) locations Attachment Business (Bolzoni) locations Global Headquarters LEGEND: Hangzhou, China (JV) Lift Truck Manufacture; Parts Distribution; Marketing and Administration Center (Maximal) Singapore Division Headquarters and Retail Dealership Hyster-Yale is a globally connected enterprise; designing, engineering, manufacturing and selling a broad array of lift trucks, attachments and technology solutions to help its customers solve their toughest challenges.
Europe Brazil North America Asia/ Pacific (excluding China) China _____________________ Source: WITS. Bookings Reports through 3//31/23. WITS Industry Data reported one quarter in arrears. Global Lift Truck Market is Decreasing, with Declines in all Geographic Areas from Peaks in 2021 Global Lift Truck Market Rates of Change through 3/31/22 ( 3 & 12-month rates of change trend)
Industry Lift Truck Market Size Data *Note: 2023E based on WITS information through 3/31/23 and company estimates. WITS Industry Data reported one quarter in arrears. _____________________ Source: WITS*. LTM 3//31/23 Orders Reports ICE = Internal Combustion Engine Industry Units by Class
____________________ Source: Company: Q2 2023 Units Shipped Note: Units sold direct by SN JV are not included ICE = Internal Combustion Engine HY Lift Truck Unit Shipments as of 6/30/23 and LTM 6/30/23 _____________________ Source: Company: LTM 6/30/23 Unit Revenues _____________________ Source: Company: LTM 6/30/23 Units Shipped Note: Units sold direct by SN JV are not included ____________________ Source: Company: LTM 6/30/23 Units Shipped Note: Units sold direct by SN JV are not included ICE = Internal Combustion Engine HY Quarterly Lift Truck Unit Revenue by Class HY Quarterly Lift Truck Units by Class HY Quarterly Lift Truck Units Sold by Geography HY FY Lift Truck Units Sold by Geography HY FY Lift Truck Units by Class HY FY Lift Truck Unit Revenue by Class
Hyster-Yale is Committed to Achieving Its Financial Targets Bolzoni MATURE BUSINESS Operating Profit 7% NUVERA VENTURE BUSINESS Focus on increasing sales near term Focus on reducing losses and moving to profitability over time Each of the three businesses has long-term financial objectives Lift Truck MATURE BUSINESS Operating Profit 7% ROTCE >20% HY’s Strategic Initiatives and Related Projects Expected to Drive Results to Targets
Lift Truck Long-Term Operating Profit Margin Target Target Economics 7.0% FY Operating Profit Margin @ 140,000 unit production Actual Q2 2023 6.0% Actual LTM 6/30/23 3.3% (0.5%) Maintain discipline as volume increases +3.4% Improving Production Efficiencies as Supply Chain challenges dissipate Economies of scale with modular/ scalable products As material cost inflation moderates and supply chain conditions improve, Gap to Target Economics are expected to narrow +0.8% Increasing shipments of higher-margin backlog Balanced plant production mix Moderating cost inflation Margins (1.4%) Volume/Manufacturing Inefficiencies +3.0% Operating expenses (0.6%) Operating Profit Margin
Capital and R&D Expenditures Cap Ex spend in 2023 estimated to be higher than reduced 2022 spend (total $ in millions) CAPITAL EXPENDITURES R&D EXPENDITURES Target R&D spend is 2.5% of revenues (total $ in millions) Note: Internal estimates are as of 6/30/23 ~36% of HY revenues come from new products released in the past 5 years 3.5% 3.6% 3.5% 2.8% 2.8%
Lift Truck
Primary industry trends are creating significant opportunities to use product and technology development to offer breakthrough solutions Products and Technology Right truck at the right price Right products for low-intensity use Cost of ownership and environment Integrated with focus on productivity Connected with data analytics Operator productivity and safety Operating cost and continuous operations Modular, scalable platforms Low-intensity products Electrification Fuel cells Telemetry Operator assist system (OAS) Automation STRATEGIC PROJECTS OBJECTIVES/ BENEFITS
Launched in Q1 and Q2 2023: New Platform double stacker with drive by wire steering and enhanced productivity for EMEA region. New high performance 2- to 3.5-ton integrated Li-ion counterbalanced Maximal-branded truck for global regions. New 45-ton Electric Reach Stacker with Li-ion battery Maximal-branded truck for China region. New mini 5 ton @ 600mm load center ICE counterbalanced Hyster® UT, Yale® UX lift trucks for AP region. New 2- to 3.5-ton ICE modular production started for the Asia-Pacific region. Expected Launches in H2 2023: Additional options for 2- to 3.5-ton modular products for the Americas , EMEA, and AP regions. New 8- to 10-ton high performance integrated Li-ion electric counterbalanced truck for China region. New 12-liter diesel engine option (Tier 3 emissions) for Asia-Pacific region Reach Stackers. Deliver Hydrogen-powered Reach Stacker to Port of Valencia, Spain for testing. Deliver first hydrogen-powered Terminal Tractor to port in Hamburg, Germany for testing. Upgrade of certain warehouse products for the EMEA and Americas markets. Expand options for Hyster® UT, Yale® UX, and Maximal-branded lift trucks for all regions. Targeted introductions of internally developed, modular automated trucks. HY Product Launches Above list is based on current information and launches could be adjusted based on market conditions
Life Cycle Costs *Typical truck cost/hour for 5,000lb North American applications Operator 69% Fuel 11% Finance 9% Service & repair 11% Cost/hour Fleet management Extended warranty Telematics Productivity Ergonomics/ fatigue Auto functions Automated trucks Energy usage Alternative powertrains Internal Combustion Engine to Electric Rider Mode control Typical Truck Cost/Hour* Factors Impacting Low Cost of Ownership Fleet optimization Price management Cost control Residuals
Lift Truck Modular and Scalable Platforms Customers seek efficiency in their operations. Scalable configurations provide optimal solutions. Launching as the Hyster® A Series and the Yale® Series N
Innovation Telemetry: Data and analysis is becoming increasingly important to operations Telemetry can provide a complete wireless asset management solution Total cost of operation visibility Productivity and utilization Operator performance Operator Assist Systems: Technologically advanced features designed to help reinforce safe and productive truck operation that help customers meet operational challenges
TT Lift Truck Automation Products Horizontal Vertical Partner Solutions Customers are seeing great value in operator free, continuous operations HY-automated lift trucks provide an infrastructure independent and flexible solution Modular, Scalable Internally Developed Automation TARGETED INTRODUCTIONS OF INITIAL APPLICATIONS EXPECTED IN LATE 2023
Objective is to Transform Commercial Competitiveness in an Evolving Market Customer’s Industry Requirements and Toughest Problems to be Solved HY Transformative Solutions Hyster-Yale Evolving Sales Transformation Participation-Focused Sales Management Advanced Selling Systems Industry-Focused Approach Highly Connected Customer Experience 360 Degree Aftersales Solutions
Increasing HY engagement in the distribution process to deliver an “As One” customer experience with our dealer partners Independent Dealer Network Drives Competitive Value HY Augmented Sales Efforts Expands Market Participation Scaling Global Distribution to Achieve HY Strategies Enhanced Distribution Capabilities Intended to Increase Competitive Advantage
Distribution Engagement Enhancing performance Dealer Excellence programs Dealer alignment Term-based contracts Hyster-Yale providing additional support ~900 global dealer locations ~3,300 application consultants ~11,200 service technicians Independent n Exclusive n Entrepreneurial n Profitable n Committed partner n Dual-line or single Strengthening the distribution footprint Industry-focused sales support Competitor acquisitions In-territory acquisitions Enhanced digital customer experience systems Dealership succession planning
Bolzoni
Strong Base and Opportunities to Leverage Materials Handling Solutions One of the world’s leading manufacturers of lift truck attachments, forks and lift tables, cylinders and transmissions with an extensive product range PORTFOLIO PRODUCTS of the Bolzoni Group(1) (1) Percentages based on first six months of 2023 results.
Bolzoni Core Strategies: Multiple Dimensions of Growth Opportunities BOLZONI TRANSFORMATION HY – BOLZONI SYNERGIES TARGET NEW CUSTOMER BOLZONI TECHNOLOGY DRIVEN SOLUTION OEM RELATIONSHIP SILVER LINE LEVERAGE GLOBAL COST SOLUTION BOLZONI FINANCIALS RENTAL & SECOND HAND ATTACHMENTS BOLZONI GROWTH AMERICAS & CHINA
Bolzoni Transformation: Increasing Commercial Agilities in the Global Market GROUP STRATEGY CHANGES IN ORGANIZATION CHANGES IN MANAGEMENT PROCESSES Alignment among the companies ONE solid and committed team Fix a common target Share best practices Allocate and coordinate resources where needed New common talent approach Marketing unification Gain speed in the market Key factors to execute a successful BOLZONI Transformation
Bolzoni Auramo Inc – Sulligent, AL - Growth Drivers in Place A plant to serve the Americas market Product localization focused on specific local market requirements Wide-handling attachments range, as well as forks North America and Latin America market coverage Expanded manufacturing of cylinders provides opportunity for Americas market
Bolzoni China: Growth Drivers in Place Wuxi (Attachments) Product localization focused on specific local and global market requirements Competitive pricing and quick delivery time Improved productivity and efficiency from production process improvements Silver Line range manufacturing addressed to all markets Hebei (Forks) Manufactures a complete range of forks for lift trucks, construction and agricultural material handling machines Fork range includes reach forks and smart-fork solutions Range developed to meet global market needs Continuously improving production processes Competitively positions Bolzoni on cost in emerging markets
Bolzoni Has a Strong OEM Foundation OEM TOP CUSTOMERS(1)(2) OEM SALES BY REGION(1)(2) OEM SALES BY PRODUCT LINE(1)(2) STRONG AND LONG-TERM RELATIONSHIPS RESULTING IN BUSINESS GROWTH ACROSS ALL REGIONS For the 12 months ended 12/31/22 Excludes cylinder sales to HY HOOK-ON SIDE SHIFTERS ATTACHMENTS
Nuvera Fuel Cells
Nuvera Is a Transformational Opportunity Leading, Patented Technology Demand Tapered in Short-term Successful Early-Stage Adoption Automated Fuel Cell Stack Assembly Lines for Series Production Expected Transformational Impact on Hyster-Yale Future Profitability Technology Experience 75+ engineers 8th generation of Fuel Cell technology 20+ years of Fuel Cell vehicle integration Application Portfolio E-45kW & E-60kW Fuel Cell engines SMVIC-certified First bus with E-series engine MIIT certified High-efficiency Fuel Cell stacks Intellectual Property 425+ active patents Fuel Cell core technology Separate Business Unit Focus on core product (Fuel Cell Stacks and Engines) Leveraging Hyster-Yale strengths Ramping up for growth At a Glance:
Nuvera Has a Distinctive Place Within Hyster-Yale Growing hydrogen fuel cell market provides opportunities for Nuvera to add significant value to HY Venture business, with strong commercialized products, focusing on gaining sales Important supplier fit as part of HY’s focus on a broad range of alternative power systems for lift trucks, with a significant market opportunity outside the lift truck market Key sales and profitability milestones established but timing cannot be predicted with precision Despite losses, HY believes Nuvera is creating significant value for HY shareholders
Technology: Optimized Fuel Cell Engine Design Embedded controls For ease of integration, reliability, and durability Unique Stack architecture High efficiency and power density Telemetry Effective remote monitoring of FC engine The Port of Valencia is expected to be the first in Europe to incorporate hydrogen reach stackers into operation Nuvera® FC Engines enable commercial and industrial vehicle electrification
Nuvera Product Platforms: Comprehensive approach to hydrogen mobility market E-Series Fuel Cell Engines: E-45 and E-60 Easily integrated fuel cell module For medium- and heavy- duty equipment and vehicles EN-125 In development Stacks / Subsystems For OEMs that understand stack deployment Broadly applicable: scalable and modular Nuvera makes FC technology WORK for customers
Nuvera Product Platforms: Integrated service / support to customers Nuvera supports customers along their lengthy hydrogen implementation journey Decision GO ELECTRIC Decision USE FUEL CELLS Decision CHOOSE NUVERA Vehicle Test Electrification Integration Design Demo Vehicle Decision GO TO SERIES VOLUME A minimum of an 18-month process
Product Platforms: Application Focus Markets Capacity Terminal Tractors In Demonstration Hyster® Toploader In Demonstration H2e Power Bus with OIL India In Demonstration ZRHE / KingLong Bus In Demonstration Off-Road Equipment Trucks Buses Delivery Vans & Commercial Vehicles Specialty/Utility Vehicles
Product Platforms: Application Focus Markets Continued RUAG Hybrid-APU In Demonstration Devinn Mobile Charger In Demonstration Nexus-Power Pack In Demonstration Off-Road Equipment Trucks Buses Delivery Vans & Commercial Vehicles Specialty/Utility Vehicles
Nuvera Product Platforms: Integration Partners in Focus Markets Strategic Partnerships Application Development Vehicle Demonstration + Deployment -Dayco (global) -UMS (Europe) -ZRHE (China) -he2 Power (India) -Hyster-Yale (Global)
Key Takeaways – Q2 2023 Strong 2023 Financial Results Expected Backlog value increasing: Avg. sales price/ backlog unit up 23% from Q2 ’22 Backlog units down 19% from ’22 peak: higher shipments and bookings deceleration 64% debt to total capital down 160 bps from Q3 ‘22 peak Improving returns Lower debt levels Financial Leverage Improving Improving Backlog Improving lead times, dissipating supply headwinds and maturing strategic initiatives $58.8M Operating Profit Q2 ’22 loss 38% above Q1 ‘23 $1.1B revenue 22% above Q2‘22 9% above Q1 '23 Growing Results Improving supply chain conditions Positive price-to-cost ratio continues Americas improvement outpacing EMEA and JAPIC Dissipating Headwinds
APPENDIX
Non-GAAP Disclosure Adjusted EBITDA is not a measurement under U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures, and is not necessarily comparable with similarly titled measures of other companies. Hyster-Yale defines Adjusted EBITDA as the following: Adjusted EBITDA is defined as income (loss) before Goodwill and fixed asset impairment charges, income taxes and noncontrolling interest plus net interest expense and depreciation and amortization expense For reconciliations from GAAP measurements to non-GAAP measurements, see the following pages.
($ in millions) Year Ended December 31 Year Ended December 31 YTD Qtr. Qtr. Consolidated 2018 2019 2020 2021 2022 6/30/23 6/30/23 6/30/22 Reconciliation of Adjusted EBITDA Net income (loss) attributable to stockholders $34.7 $35.8 $37.1 $(173.0) $(74.1) $64.9 $38.3 $(19.4) Goodwill and other intangible assets impairment charges - - - 55.6 - - - - Fixed Asset impairment charges - - - 10.0 - - - - Noncontrolling interest income and dividends (0.4) 0.8 1.4 (10.2) 2.5 1.1 0.5 0.7 Income tax provision (benefit) 2.3 11.3 3.7 28.3 9.2 20.7 12.0 (3.1) Interest expense 16.0 19.8 13.7 15.5 28.4 18.6 8.4 6.1 Interest income (2.4) (1.8) (1.4) (0.6) (1.1) (1.2) (0.6) (0.2) Depreciation and amortization expense 44.0 43.3 42.9 46.2 43.4 22.5 11.3 11.0 Adjusted EBITDA $94.2 $109.2 $97.4 $(28.2) $8.3 $126.6 $69.9 $(4.9) ($ in millions) Year Ended December 31 Year Ended December 31 YTD Qtr. Lift Truck 2018 2019 2020 2021 2022 6/30/23 6/30/23 Reconciliation of Adjusted EBITDA Operating Profit (Loss) $67.5 $85.6 $85.6 $(86.9) $(10.4) $110.3 $62.5 Goodwill and other intangible assets impairment charges - - - 55.6 - - - Other income (expense) 11.7 10.9 3.3 7.3 3.7 2.7 (0.1) Depreciation and amortization expense 33.5 30.6 30.1 32.3 31.0 16.2 8.2 Adjusted EBITDA $112.7 $127.1 $119.0 $8.3 $24.3 $129.2 $70.6 Non-GAAP Reconciliation Adjusted EBITDA _____________________ Note: Adjusted EBITDA in this investor presentation is provided solely as a supplemental disclosure with respect to operating results. Adjusted EBITDA does not represent net income (loss) or operating income (loss), as defined by U.S. GAAP, and should not be considered as a substitute for net income or net loss or operating profit or loss, or as an indicator of operating performance. The Company defines Consolidated Adjusted EBITDA as income (loss) before Goodwill and fixed asset impairment charges, income taxes and noncontrolling interest plus net interest expense and depreciation and amortization expense. The Company defines Adjusted EBITDA for the segments as operating profit (loss) before Goodwill, fixed asset and other intangible assets impairment charges plus other income (expense) and depreciation and amortization expense. Adjusted EBITDA is not a measurement under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies.
Non-GAAP Reconciliation Adjusted EBITDA continued ($ in millions) Year Ended December 31 YTD Qtr. Bolzoni 2018 2019 2020 2021 2022 6/30/23 6/30/23 Reconciliation of Adjusted EBITDA Operating Profit (Loss) $9.5 $4.7 $1.0 $(1.8) $6.2 $9.8 $5.4 Other income (expense) (0.3) (0.2) - 0.5 0.3 - (0.1) Depreciation and amortization expense 9.7 11.7 11.7 12.7 11.7 5.9 2.9 Adjusted EBITDA $18.9 $16.2 $12.7 $11.4 $18.2 $15.7 $8.2 ($ in millions) Year Ended December 31 Year Ended December 31 YTD Qtr. Nuvera 2018 2019 2020 2021 2022 6/30/23 6/30/23 Reconciliation of Adjusted EBITDA Operating Profit (Loss) $(38.3) $(36.3) $(36.1) $(62.3) $(34.3) $(19.0) $(9.2) Goodwill and other intangible assets impairment charges - - - - - - - Fixed asset impairment charges - - - 10.0 - - - Other income (expense) - 1.3 1.3 4.5 - - - Depreciation and amortization expense 0.8 1.0 1.1 1.2 0.7 0.4 0.2 Adjusted EBITDA $(37.5) $(34.0) $(33.7) $(46.6) $(33.6) $(18.6) $(9.0) _____________________ Note: Adjusted EBITDA in this investor presentation is provided solely as a supplemental disclosure with respect to operating results. Adjusted EBITDA does not represent net income (loss) or operating income (loss), as defined by U.S. GAAP, and should not be considered as a substitute for net income or net loss or operating profit or loss, or as an indicator of operating performance. The Company defines Consolidated Adjusted EBITDA as income (loss) before Goodwill and fixed asset impairment charges, income taxes and noncontrolling interest plus net interest expense and depreciation and amortization expense. The Company defines Adjusted EBITDA for the segments as operating profit (loss) before Goodwill, fixed asset and other intangible assets impairment charges plus other income (expense) and depreciation and amortization expense. Adjusted EBITDA is not a measurement under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies.
Valuation Approach Should Vary by Business Lift Truck & Attachments Businesses Fuel Cell Business Mature Cyclical Industry Market Leading Products and Position Operating Cash Generation Value Using Traditional Valuation Model of EBITDA Multiple on a Net Debt Basis Multiple should reflect ROIC levels due to Hyster-Yale’s distribution strategy Venture / Technology Industry Distinct Technology / Patents in Fuel Cell Operating Cash Invested in New Product Commercialization / Ramp Up Value as Venture Business with Developed Technology Fuel Cell Business