Hyster-Yale Materials Handling, Inc. (NYSE:HY) Q2 2021 Results Conference Call August 4, 2021 11:00 AM ET Company Participants Christina Kmetko - IR Al Rankin - Chairman and CEO Rajiv Prasad - President Ken Schilling - SVP and CFO Conference Call Participants Steve Ferazani - Sidoti & Company Brett Kearney - Gabelli Funds Operator Good day, and thank you for standing by, and welcome to the Hyster-Yale Q2 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speak ...

| Part I. | FINANCIAL | | Number | | --- | --- | --- | --- | | | INFORMATION | | | | | Item 1 | Financial Statements | | | | | Unaudited Condensed Consolidated Balance Sheets | 2 | | | | Unaudited Condensed Consolidated Statements of Operations | 3 | | | | Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) | 4 | | | | Unaudited Condensed Consolidated Statements of Cash Flows | 5 | | | | Unaudited Condensed Consolidated Statements of Changes in Equity | 6 | | | | Notes to Unaudited Co ...

Financial Data and Key Metrics Changes - In Q1 2021, consolidated revenues decreased by 6.8% to $732.2 million from $785.7 million in Q1 2020, primarily due to lower shipments in the Americas [16][18] - Consolidated net income fell to $5.6 million or $0.33 per share, down from $15.3 million or $0.91 per share in the prior year [18] - Operating profit decreased to $3.1 million from $20.2 million in the prior year, impacted by increased material costs and manufacturing variances [17][18] Business Line Data and Key Metrics Changes - In the Lift Truck business, operating profit decreased by $2.2 million from $28 million in the prior year quarter due to supply chain challenges [19] - Bolzoni's revenues decreased by 9.6%, with operating profit dropping to $8,000 from $2.7 million in the prior year [19][20] - Nuvera experienced a revenue decrease and an increase in operating loss to $9.8 million from $9.4 million in the previous year [21] Market Data and Key Metrics Changes - The global lift truck market grew significantly, with a 46% increase compared to Q1 2020, excluding China [24] - In Q1 2021, the global lift truck market, including China, increased by 20% compared to Q4 2020, driven by strong demand in EMEA and the Americas [25] - Despite increased bookings, unit shipments were lower than Q1 2020 due to production rate adjustments to match component availability [26] Company Strategy and Development Direction - The company is focusing on strategic projects to enhance market share and has introduced new modular product families for both internal combustion and electric trucks [31][32] - Bolzoni is implementing a "One Company Three Brands" approach to streamline operations and strengthen its North American presence [34] - Nuvera is concentrating on heavy-duty applications and accelerating commercialization of its hydrogen engines [36] Management's Comments on Operating Environment and Future Outlook - Management noted that supply chain disruptions significantly impacted production and material costs, leading to lower earnings in Q1 2021 [8][10] - The company expects market growth to moderate but anticipates increased bookings for the full year compared to 2020 [28][29] - Future production levels are uncertain due to ongoing supply chain challenges, but management is optimistic about resolving these issues in the second half of the year [43][44] Other Important Information - The company reinstated pre-pandemic salaries and benefits effective January 1, 2021, while continuing other cost containment measures [39] - As of March 31, 2021, the company had cash on hand of $103 million and debt of $285.4 million, with unused borrowing capacity of approximately $265.3 million [50] Q&A Session Summary Question: Did supply chain constraints become more challenging as Q1 progressed? - Management indicated that while challenges persisted throughout the quarter, visibility into the supply chain improved over time, with specific issues being addressed [58][62] Question: How sticky is the backlog? - Management expressed confidence that the majority of the backlog is stable, as customers are aware of lead times and market challenges [65][67] Question: What is the impact of tariff exclusions? - Management highlighted concerns regarding the lack of a tariff exclusion process under the new administration, which could lead to increased costs [73][74] Question: What opportunities exist for Nuvera? - Management noted increased opportunities for product demonstrations, particularly in heavy-duty vehicle markets, with traction seen in Europe and North America [84][86]

Part I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements for the quarter ended March 31, 2021 [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Q1 2021 financials show a slight asset increase, a sharp decline in net income, and negative operating cash flow Condensed Consolidated Balance Sheets | | MARCH 31, 2021 | DECEMBER 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $1,185.0 million | $1,129.7 million | | **Total Assets** | $1,874.1 million | $1,859.5 million | | **Total Current Liabilities** | $823.2 million | $755.9 million | | **Total Liabilities** | $1,258.3 million | $1,208.4 million | | **Total Equity** | $615.8 million | $651.1 million | Condensed Consolidated Statements of Operations | | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Revenues** | $732.2 million | $785.7 million | | **Gross Profit** | $118.4 million | $136.7 million | | **Operating Profit** | $3.1 million | $20.2 million | | **Net Income Attributable to Stockholders** | $5.6 million | $15.3 million | | **Diluted Earnings per Share** | $0.33 | $0.91 | Condensed Consolidated Statements of Cash Flows | | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Net cash used for operating activities** | ($47.1) million | ($45.7) million | | **Net cash provided by (used for) investing activities** | $9.5 million | ($17.4) million | | **Net cash provided by (used for) financing activities** | ($8.0) million | $53.1 million | | **Cash and Cash Equivalents, end of period** | $103.0 million | $50.4 million | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the negative impact of the COVID-19 pandemic, including supply chain constraints and cost inflation - In Q1 2021, the company experienced **pandemic-related supply chain constraints**, component shortages, shipping issues, and **significant material cost inflation**[21](index=21&type=chunk)[83](index=83&type=chunk) Revenues by Segment | Segment | Q1 2021 Revenue | Q1 2020 Revenue | | :--- | :--- | :--- | | Americas | $459.7 million | $550.7 million | | EMEA | $170.7 million | $152.1 million | | JAPIC | $60.5 million | $44.6 million | | Bolzoni | $79.5 million | $87.9 million | | Nuvera | $0 million | $1.4 million | Operating Profit (Loss) by Segment | Segment | Q1 2021 Operating Profit (Loss) | Q1 2020 Operating Profit (Loss) | | :--- | :--- | :--- | | Americas | $14.6 million | $38.5 million | | EMEA | $0.1 million | ($4.5) million | | JAPIC | ($2.5) million | ($6.0) million | | Bolzoni | $0.8 million | $2.7 million | | Nuvera | ($9.8) million | ($9.4) million | - As of March 31, 2021, the company had total recourse or repurchase obligations of **$120.6 million** related to financing arrangements[73](index=73&type=chunk) - The company sold its investment in OneH2, Inc for **$15.7 million** during Q1 2021, recognizing a gain of **$4.6 million**[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant Q1 2021 performance decline to supply chain constraints and cost inflation [Financial Review](index=24&type=section&id=Financial%20Review) Q1 2021 revenues and operating profit declined sharply due to lower volumes and significant cost inflation Key Financial Metrics | Metric | Q1 2021 | Q1 2020 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $732.2 M | $785.7 M | (6.8)% | | **Gross profit** | $118.4 M | $136.7 M | (13.4)% | | **Operating profit** | $3.1 M | $20.2 M | (84.7)% | | **Net income attributable to stockholders** | $5.6 M | $15.3 M | (63.4)% | Bookings and Backlog | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | **Unit Bookings (thousands)** | 42.4 | 19.4 | | **Unit Backlog, end of period (thousands)** | 60.7 | 37.3 | | **Backlog, approx. sales value** | $1,520 million | $960 million | - The decrease in operating profit was mainly due to a **$17.1 million decline** in lift truck gross profit and a **$1.9 million decrease** from Bolzoni operations[94](index=94&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity tightened with decreased cash, though it maintained access to significant credit facilities - Net cash used for operating activities increased slightly to **$47.1 million** in Q1 2021 from $45.7 million in Q1 2020, primarily due to lower net income[100](index=100&type=chunk)[101](index=101&type=chunk) - As of March 31, 2021, the company had **$235.5 million available** under its $240.0 million secured revolving credit facility and was in compliance with all debt covenants[104](index=104&type=chunk)[106](index=106&type=chunk) Key Liquidity and Capitalization Metrics | | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $103.0 million | $151.4 million | | **Total debt** | $285.4 million | $289.2 million | | **Total equity** | $615.8 million | $651.1 million | | **Debt to total capitalization** | 32% | 31% | [Business Prospects](index=29&type=section&id=Business%20Prospects) Management expects near-term headwinds from supply chain issues but anticipates improved Q2 2021 results - Lift truck markets grew significantly faster than anticipated in Q1 2021, leading to a substantial increase in the company's bookings and a **record-high backlog**[115](index=115&type=chunk)[121](index=121&type=chunk) - **Production headwinds** from supply chain constraints, **significant material cost inflation**, and higher freight costs are expected to continue into Q2 and Q3 2021[121](index=121&type=chunk) - Operating profit and net income in Q2 2021 are expected to be **significantly higher** than the very low results of Q2 2020 and Q1 2021[122](index=122&type=chunk) - Long-term strategy focuses on key initiatives expected to have a **transformational impact** on competitiveness and performance[126](index=126&type=chunk)[127](index=127&type=chunk)[131](index=131&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposures since its 2020 Annual Report - There have been **no material changes** in the Company's market risk exposures since December 31, 2020[138](index=138&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021 - Based on an evaluation, the principal executive and financial officers concluded that the Company's disclosure controls and procedures were **effective**[140](index=140&type=chunk) - During the first quarter of 2021, there were **no changes** in the Company's internal control over financial reporting that materially affected its internal controls[141](index=141&type=chunk) Part II. OTHER INFORMATION [Item 1. Legal Proceedings, Item 1A. Risk Factors, and Other Items](index=33&type=section&id=Item%201.%20Legal%20Proceedings%2C%20Item%201A.%20Risk%20Factors%2C%20and%20Other%20Items) The company reports no new legal proceedings or material changes to previously disclosed risk factors - The company reports **no new legal proceedings**[142](index=142&type=chunk) - There have been **no material changes** from risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020[142](index=142&type=chunk)

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2020 decreased to $719.6 million, down 13.8% from the previous year, primarily due to lower shipments resulting from the pandemic [11] - Operating profit increased significantly to $13.7 million from $8.1 million in the prior year quarter, attributed to lower operating expenses [11] - Net income rose to $13.1 million or $0.78 per share from $3.4 million or $0.20 per share in the prior year quarter [12] Business Line Data and Key Metrics Changes - Lift truck business revenues decreased 14.3% to $683.9 million from $798.2 million in 2019, mainly due to fewer shipments in the Americas and EMEA segments [12] - Operating profit in the lift truck business increased 37.9% from the prior year quarter, mainly due to lower operating expenses and European government subsidies [13] - Bolzoni segment revenues decreased 21.5%, reporting an operating loss of $1.3 million compared to an operating profit of $500,000 in Q4 2019 [14] Market Data and Key Metrics Changes - The global lift truck market increased 9.3% compared to Q4 2019, with a significant increase in bookings in December 2020 [16] - Excluding China, the global lift truck market grew 9.3%, while China saw a 56% increase over the prior year [16] - The backlog level was close to pre-pandemic levels due to strong bookings in Q4 2020 [17] Company Strategy and Development Direction - The company continues to execute long-term strategic initiatives despite near-term economic volatility, focusing on cost containment and operational efficiency [18] - New product introductions are prioritized, including a modular, scalable product family for both internal combustion engine and electric trucks, with a launch expected in Q2 2021 [19] - Bolzoni is enhancing its North America growth strategy by introducing locally produced attachments and implementing a streamlined organizational approach [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market recovery but acknowledged ongoing challenges such as supply chain constraints and cost inflation [24][28] - The company plans to increase capital expenditures to approximately $71 million in 2021, up from $51.7 million in 2020, while maintaining liquidity [33] - Future bookings and shipments remain uncertain due to the pandemic's impact, but management expects improved conditions as vaccinations become widespread [30][32] Other Important Information - The company recognized a restructuring charge of approximately $4.4 million in Q4 2020, with anticipated annual benefits of approximately $10.4 million starting in 2022 [26] - Cash on hand increased to $151.4 million at year-end 2020, with unused borrowing capacity of approximately $266.4 million under existing revolving credit facilities [34] Q&A Session Summary Question: How can we think about 2021 sales compared to pre-pandemic 2019 sales? - Management highlighted uncertainty in forecasting due to pandemic impacts but noted strong bookings and backlog returning to pre-pandemic levels [41][42] Question: Can you quantify the percentage of costs that are going to be reinstated in the earlier part of the year? - Management indicated that a significant portion of cost savings programs have been reinstated, particularly salaries and benefits, but efforts to hold costs down will continue [44][45] Question: What is the outlook for Nuvera and its market potential? - Management expressed confidence in Nuvera's growth potential and ongoing efforts to build commercial operations globally, including traction in various markets [49][53]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 000-54799 HYSTER-YALE MATERIALS HANDLING, INC. (Exact name of registrant as specified in its charter) Delaware 31-1637659 (State or other jurisdiction of incorporation or orga ...

HYSTER-YALE MATERIALS HANDLING Mass Customization Bank of America 2020 Leveraged Finance Virtual Conference Electrification Automation Digitization Globalization 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- ...

Hyster-Yale Materials Handling, Inc. (NYSE:HY) Q3 2020 Earnings Conference Call November 4, 2020 11:00 AM ET Company Participants Christina Kmetko - Investor Relations Al Rankin - Chairman, President and Chief Executive Officer Rajiv Prasad - President and Chief Executive Officer, Hyster-Yale Group, Inc. Ken Schilling - Senior Vice President and Chief Financial Officer Conference Call Participants Michael Sesser - DWS Mike Shlisky - Colliers Securities Operator Thank you for standing by, and welcome to the ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _______________________________________________________________________________________________________________________________________________________________________________________________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE ...

HYSTER-YALE MATERIALS HANDLING Mass Customization SIDOTI FALL 2020 VIRTUAL Electrification Automation Digitization INVESTOR CONFERENCE Globalization 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) ...