Hyster-Yale Materials Handling, Inc. Annual Report 2017

FY2017 Annual Report · Hyster-Yale Materials Handling, Inc.

Loading PDF…

2 17

Solutions That Drive Productivity

Annual Report

Hyster-Yale maintains leading market share
positions in the Americas and worldwide

The Hyster® Jumbo Truck production line in Nijmegen, The Netherlands.

Contents
About the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Selected Financial and Operating Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Letter to Stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Form 10-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17

Directors and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 114

Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Inside Back Cover

Cover Photo Captions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Inside Back Cover

Mission Statement: To be a leading, globally integrated designer,

manufacturer and marketer of a complete range of lift truck solutions by
leveraging its high-quality, application-tailored lift trucks, attachments and power
solutions to offer the lowest cost of ownership and the best overall value.

About the Company

Hyster-Yale Materials Handling, Inc.,

headquartered in Cleveland, Ohio, is a leading,
globally integrated, full-line lift truck manufacturer.
The Company offers a broad array of solutions
aimed at meeting the specific materials handling
needs of its customers.

Lift Trucks

The Company’s operating subsidiary, Hyster-Yale
Group, Inc., designs, engineers, manufactures, sells
and services a comprehensive line of lift trucks and
aftermarket parts marketed globally, primarily under
the Hyster® and Yale® brand names. The Company
manufactures lift trucks and component parts in
the United States, Northern Ireland, Mexico, the
Netherlands, Italy, Vietnam, the Philippines, Japan,
Brazil and China.

Lift truck unit volumes drive the Company’s
economic engine, and its worldwide distribution
strength drives market share, volume, economies
of scale and installed truck population. Hyster-Yale
had an estimated installed population base of
over 830,000 lift trucks in operation at the end of
2017 in more than 800 industries worldwide. This
population, in turn, generates profitable aftermarket
revenue for both Hyster-Yale and its dealers.

Attachments, Forks and Lift Tables

Bolzoni S.p.A. is a leading worldwide designer,

producer and distributor of a wide range of
attachments, forks and lift tables marketed under
the Bolzoni®, Auramo® and Meyer® brand names.
Bolzoni attachments meet the handling needs of

customers in a broad array of industries, including
paper, beverage, automotive and white goods.
Bolzoni products are manufactured in Italy, China,
Germany, Finland and the United States.

Hydrogen Power

Hyster-Yale’s Hydrogen Power business, Nuvera

Fuel Cells, is an alternative-power technology
company focused on hydrogen fuel cell stacks
and engines designed to deliver clean energy
solutions to customers. The Company sees great
opportunity to integrate fuel cell-powered engines
into its product line and to develop partnerships
with companies requiring a reliable source of
high-efficiency fuel cell stacks and engines.

Goals and Strategic Initiatives

The Company’s objective is to provide a wide

range of solutions to its customers to generate
profitable growth through increasing volumes,
which in turn are expected to generate market
share gains and drive improved margins. The
Company plans to accomplish these objectives
by implementing its core strategic initiatives to:
• Be the leader in the delivery of industry-
and customer-focused solutions

• Provide the lowest cost of ownership, while
enhancing productivity for customers

• Be the leader in independent distribution

• Grow in emerging markets

• Be the leader in the attachments business

• Be a leader in fuel cells and their applications

|| 1

Total Revenues
(in billions)

$2.7

$2.8

$2.6

Adjusted EBITDA*
(in millions)

$2.9

$200

$150

$164.8

$182.6

$136.6

$152.5

$82.1

$100

$50

$(50)

$3.0

$2.0

$1.0

■ Lift Truck ■ Bolzoni ■ Nuvera Consolidated

* See page 3 for the calculation of Adjusted EBITDA, the discussion of non-GAAP items and the related reconciliations to U.S. GAAP measures.

Selected Financial and Operating Data

Operating Statement Data:
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Net (income) loss attributable

to noncontrolling interest . . . . . . . . . . . . . . . . . . ..
Net income attributable to stockholders . . . . . . ..
Basic earnings per share

2017(1)

$ 2,885.2
76.0
$
48.9
$

(0.3)
48.6

attributable to stockholders . . . . . . . . . . . . . . . . ..

2.95

Diluted earnings per share

attributable to stockholders . . . . . . . . . . . . . . . . ..

2.94

Balance Sheet Data at December 31:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . ..

$ 220.1
$ 1,647.9
$ 216.2
$ 565.5

2016

Year Ended December 31
2015
(In millions, except per share data)

2014

2013

$ 2,569.7
34.9
$
42.3
$

$ 2,578.1
103.5
$
75.1
$

$ 2,767.2
148.8
$
110.2
$

$ 2,666.3
134.3
$
110.2
$

0.5
42.8

2.61

(0.4)
74.7

4.58

4.57

(0.4)
109.8

6.61

6.58

(0.2)
110.0

6.58

6.54

$
43.2
$ 1,287.1
82.2
$
463.8
$

$
155.1
$ 1,095.9
19.6
$
460.8
$

$
111.4
$ 1,120.8
12.0
$
454.5
$

$
175.7
$ 1,161.3
6.7
$
449.8
$

Cash Flow Data:
Provided by (used for) operating activities . . . . ..
Used for investing activities . . . . . . . . . . . . . . . . . . ..
Cash flow before financing activities(2) . . . . . . ..

$ 164.7
(47.3)
$
117.4
$

$
$
$

(48.9)
(145.1)
(194.0)

2 ||

Provided by (used for) financing activities . . . . . ..

53.1

77.9

$
$
$

89.4
(31.3)
58.1

$
$
$

100.0
(44.4)
55.6

$
$
$

152.9
(26.1)
126.8

(7.1)

(110.5)

(104.4)

Per Share Data:
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Market value at December 31 . . . . . . . . . . . . . . . . ..
Stockholders’ equity at December 31 . . . . . . . . . ..
Actual shares outstanding at December 31 . . . ..
Basic weighted average shares outstanding . . . ..
Diluted weighted average shares outstanding . ..
Total employees at December 31(3) . . . . . . . . . . . . ..

$ 1.2025
$ 85.16
34.35
$
16.462
16.447
16.514
6,800

$ 1.1700
63.77
$
28.30
$
16.391
16.376
16.427
6,500

$ 1.1300
52.45
$
28.23
$
16.324
16.307
16.355
5,400

$ 1.0750
73.20
$
27.98
$
16.241
16.607
16.675
5,400

$ 1.0000
93.16
$
26.91
$
16.714
16.725
16.808
5,100

(1) During 2017, Hyster-Yale recognized $19.8 million of equity income from its financing joint venture and $38.2 million of income tax expense as a result of the new U.S. tax

reform legislation enacted in December 2017.

(2) Cash flow before financing activities is equal to net cash provided by (used for) operating activities less net cash used for investing activities.
(3) Excludes temporary employees.
(4) Adjusted EBITDA in this Annual Report is provided solely as a supplemental disclosure with respect to operating results. Adjusted EBITDA does not represent net income,
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. Hyster-Yale defines Adjusted
EBITDA as income before asset impairment charges, income taxes and noncontrolling interest income (loss) plus net interest 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.

(5) 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.

(6) Return on equity is defined as net income divided by average stockholders’ equity.
(7) 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

$75.6 million in Nuvera. Investment numbers are based on a 5-point average.

(8) These entities are presented on a stand-alone basis, and as such, do not sum to the Consolidated financial information.

|| 3

2 ||

Hyster-Yale Materials Handling I 2017 Annual Report

2017

2016

Year Ended December 31
2015
(In millions)

2014

2013

Calculation of Adjusted EBITDA(4)
Net income attributable to stockholders . . . . . . ..
Nuvera asset impairment . . . . . . . . . . . . . . . . . . . . . ..
Noncontrolling interest income (loss) . . . . . . . . . ..
Income tax provision (benefit) . . . . . . . . . . . . . . . . ..
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Depreciation and amortization expense . . . . . . ..
Adjusted EBITDA(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

48.6
4.9
0.3
44.9
14.6
(3.6)
42.8
$ 152.5

42.8
–
(0.5)
(4.0)
6.7
(2.0)
39.1
82.1

74.7
–
0.4
29.4
4.7
(1.5)
28.9
136.6

109.8
–
0.4
39.9
3.9
(1.1)
29.7
182.6

110.0
–
0.2
17.2
9.0
(1.8)
30.2
164.8

Calculation of Return on Total

Capital Employed

Average stockholders’ equity . . . . . . . . . . . . . . . . . ..
Average debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Average cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Average capital employed . . . . . . . . . . . . . . . . . . ..

Net income (loss) attributable to

stockholders, as reported . . . . . . . . . . . . . . . . . . ..
Plus: Interest expense, net, as reported . . . . . . . ..
Less: Income taxes on interest expense,

net at 38%*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

Actual return on capital employed =

actual net income (loss) before interest
expense, net, after tax . . . . . . . . . . . . . . . . . . . . ..

Plus: Income tax expense impact of U.S.

Year Ended December 31
2017*

(In millions, except percentage data)

2016**

Lift Truck(7)(8)

Nuvera(8)

Bolzoni(8)

Consolidated

571.4
205.6
(325.2)
451.8

71.8
10.2

(3.9)

21.3
2.2
(0.2)
23.3

(26.7)
–

–

117.7
49.0
(10.9)
155.8

3.9
0.8

(0.3)

518.8
247.9
(161.3)
605.4

48.6
11.0

(4.2)

483.6
126.1
(94.6)
515.0

42.8
4.7

(1.8)

|| 3

78.1

(26.7)

4.4

55.4

45.7

tax reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

36.4

Less: U.S. tax reform impact on

equity earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

(19.8)

1.6

–

0.2

–

38.2

(19.8)

–

Adjusted return on capital employed =
actual return on capital employed
less impact of U.S. tax reform . . . . . . . . . . . . ..

Actual return on capital employed

94.7

(25.1)

4.6

73.8

45.7

percentage(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

17.3%

Adjusted return on capital employed

percentage(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

Actual Return on equity percentage(6) . . . . . . ..

21.0%

12.6%

n/m

2.8%

2.9%

3.3%

9.2%

12.2%

9.4%

8.9%

* **2017 Average stockholders’ equity, debt and cash are calculated using 12/31/16 and each of 2017’s quarter ends.
***2016 Average stockholders’ equity, debt and cash are calculated using 12/31/15 and each of 2016’s quarter ends.
*** Tax rate of 38% represents the Company’s target U.S. marginal tax rate compared with the effective income tax rate of 47.9% in 2017 and the non-meaningful effective

income tax rate in 2016.

To Our Stockholders

Introduction

2017 was a much improved year for Hyster-Yale,
which operates three separate businesses: its core
Lift Truck business, its Attachment business, Bolzoni,
and its Hydrogen Power business, Nuvera.

The markets in which the Company competes
were robust and each of Hyster-Yale’s business units
experienced growth. The Company achieved positive
momentum in all of its strategic initiatives and many
of the headwinds that had reduced the financial
results in 2016 abated. The Company maintained its
focus on a carefully paced ramp-up in production
and achievement of price goals through sales of a
richer mix of products, while maintaining a healthy
backlog to achieve production efficiencies. Overall
lift truck unit shipments increased by 10% to 93,400
units while consolidated revenues grew 12% to
$2.9 billion, including a 16% growth in revenues at
Bolzoni, which was acquired in early 2016. Operating
profit increased 118% to $76 million. Both the Lift
Truck and Attachment businesses ended the year
with strong bookings and backlog, which exceeded
the Company’s expectations.

In late December, Congress enacted new U.S.
tax reform legislation that resulted in the Company
taking a discrete tax charge of $38.2 million.

However, this unfavorable effect was partially offset
by the favorable effect of this legislation on the
Company’s financing joint venture through the
recognition of $19.8 million of additional equity
earnings. Including the effects of tax reform, the
Company’s 2017 consolidated net income increased
13.6% to $48.6(1) million from $42.8 million in 2016.

The markets in which the Company
competes were robust and each
of Hyster-Yale’s business units
experienced growth in 2017.

While the Company’s operating results improved

substantially, 2017 was not without challenges.
Material cost inflation was a drag on earnings in
both the Lift Truck and Attachment businesses.
Also, while the Hydrogen Power business made
significant progress, the Company pushed out the
Nuvera break-even target to within the next two
years. In this context, an asset impairment review
of long-lived assets resulted in a $4.9 million

(1) For purposes of this annual report, discussions about net income refer to net income attributable to stockholders.

Left: A Hyster® H40FT pneumatic-tire, internal combustion engine lift truck with a trucking application mast loads pallets onto a trailer.
Right: A European Yale® MO25 multi-level order picker used in warehousing and distribution
applications is capable of lifting up to 2.5 tons.

4 ||

Hyster-Yale Materials Handling I 2017 Annual Report

to customary closing conditions and required
regulatory approvals. In addition, new investments
are being made to develop premium and standard
platforms in core product ranges of Hyster-Yale’s lift
truck portfolio. The Company also announced plans
for an Emerging Market Development Center based
in China to focus on the development of a broader
range of utility and standard products.

A more in-depth understanding of the Company
is best achieved by focusing on each of its three inde-
pendently managed businesses as outlined below.

Our Lift Truck Business

Hyster-Yale is a leading, globally integrated
designer, manufacturer and marketer of a complete
range of lift truck solutions that leverages high-
quality, application-tailored lift trucks, attachments
and power solutions to offer the lowest cost of
ownership, enhanced customer productivity and the
best overall value. Hyster-Yale has established six key
strategic initiatives, which are designed to increase
sustained profitability and market share growth,
and are reinforced by the Company’s corporate
themes of innovation, quality culture, pricing and
cost leadership, services excellence and developing
people capabilities for the future.

During 2017, the global lift truck market grew

18% to 1.4 million units, setting record levels in
many areas of the world. The Japan, Asia-Pacific,
India and China (“JAPIC”) region grew 29% in 2017,
primarily because of a 39% increase in the China
market. The Americas market grew 12% during the
year, with double-digit growth in North America
and Latin America, as well as a 46% increase in
demand in Brazil. The Europe, Middle East and
Africa (“EMEA”) region experienced growth of 11%,
driven primarily by strong Western Europe growth.
All product classes demonstrated year-over-year
growth, but increases were strongest in the lower-
value Class 3 segment.

Looking forward, after a much stronger than
expected market in 2017, the overall global lift truck
market is expected to remain strong in 2018 but be
comparable to last year, with an anticipated modest
decrease in the China market offset by moderate
growth in the Americas, EMEA and other Asia-Pacific
markets. The Company is encouraged with the

|| 5

non-cash impairment charge during the fourth
quarter. Nevertheless, the Company believes that
significant value was added to the Hydrogen Power
business in 2017 and remains upbeat regarding the
prospects for this business over the medium term
with momentum building around Nuvera’s fuel cell
stack and engine solutions.

In May 2017, the Company entered into a new

$200 million Term Loan facility to provide more
appropriate long-term capitalization of the Bolzoni
acquisition, which was completed using cash on
hand and borrowings on the Company’s short-
term revolving credit facility, and to pay down the
Company’s revolving credit facility. The remaining
Term Loan proceeds are available for strategic
investments and future bolt-on acquisitions,
including the recently announced, but not yet
completed, acquisition of a 75% interest in Zhejiang
Maximal Forklift Company Limited (“Maximal”).

Corporate Themes
• Innovation
• Quality Culture
• Pricing and Cost Leadership
• Services Excellence
• Develop People Capabilities for the Future

Throughout 2017, Hyster-Yale continued to look

for investments that would strengthen its ability
to serve its customers, either by expanding the
Company’s already broad product portfolio into
adjacent industries, expanding the breadth and
depth of the Company’s geographic footprint or
investing in new technologies that would enhance
customers’ productivity. In May 2017, the Company
invested $5.6 million in a French automation
company, Balyo, and in December 2017 announced
the intention to invest $90 million to acquire a
75% interest in Maximal, a privately held, Chinese
manufacturer of utility and standard lift trucks and
specialized material handling equipment, located
near Hangzhou. This transaction, expected to
close during the second quarter of 2018, is subject

progress made on its strategic initiatives during 2017
and their positive effect on results, but there is room
for further progress. In this context, Hyster-Yale is
optimistic it can grow in 2018 and gain market share.

Strategic Initiatives
• Be the leader in the delivery of industry-
and customer-focused solutions
• Provide the lowest cost of ownership, while
enhancing productivity for customers
• Be the leader in independent distribution
• Grow in emerging markets
• Be the leader in the attachments business
• Be a leader in fuel cells and their
applications

6 ||

The Lift Truck business achieved return on capital

employed (“ROTCE”) of 17.3% despite the one-
time unfavorable tax reform impact. Excluding the
impact of tax reform, ROTCE was 21.0%. In addition,
Lift Truck operating profit improved more than
50% to $112.2 million in 2017. The Company made
progress in increasing the operating profit margin

from 3.0% in 2016 to 4.1% in 2017. However, this is
still 2.9 percentage points below the Company’s Lift
Truck target operating margin of 7%. The Company
remains focused on closing this gap over the
medium term through aggressive execution of its
strategic initiatives.

In early 2018, the Company restructured its key

strategic initiatives, which are outlined below, to
bring them more in alignment with the current
priorities and focus of its businesses.

Leadership in Delivering Industry- and
Customer-Focused Solutions: The Company is
focused on providing a full range of differentiated
products and solutions for specific industry and
customer applications. To implement this, Hyster-
Yale is reorganizing and increasing the size of its
sales and marketing teams around greater levels of
industry specialization. These changes are aimed at
ensuring that customers benefit from working with
a partner which fully understands their pain points
and which will work to bring them value solutions.
Delivering Lowest Cost of Ownership and
Enhanced Productivity to Customers: Hyster-Yale’s
product portfolio spans all five major product
classes. The Company continues to invest in
broadening its product range and has focused on
designing and developing utility, standard and

From left to right: A Yale® GC050VX Veracitor® cushion-tire, internal combustion engine lift truck with a basic lifting capacity of 5,000 pounds, a Hyster®
W45Z walkie pallet truck with a capacity of 4,500 pounds and a Hyster® S50FT Fortis® cushion-tire, internal combustion
engine lift truck load trailers in a shipping area.

Hyster-Yale Materials Handling I 2017 Annual Report

premium products for its electric-rider, warehouse,
internal combustion engine (“ICE”) and Big Truck
product lines in all appropriate market segments.
The Company currently offers over 280 different
lift truck models with a full range of power options,
including various battery-powered and fuel cell
engine power options for its electric trucks, and an
array of gas- and fuel-powered engine options for its
ICE trucks. Having the right product at the right price
for each application allows the Company to provide
products that consistently meet the specific, but
varied needs of customers at appropriate margins,
give customers the ability to move goods in a more
efficient and cost-effective manner and lower the
life-cycle cost of operating their trucks.

In most markets around the world, electric-
powered trucks are gaining in popularity, due
mainly to growth of the retail, warehousing and
distribution market segments, particularly in North
America and Western Europe during 2017, but also
in part due to environmental concerns. Hyster-Yale
launched new versions of the Class 3 electric-stacker
warehouse truck in EMEA, and a new enclosed end-
rider warehouse truck in both the United States and

Europe. In this context,
sales of electric lift
trucks accounted for
29% of Hyster-Yale’s
revenues in 2017, up
from 27% in 2016. In
2018, the Company
expects to introduce new
electric models and a greater
array of lithium-ion-powered
solutions in all markets. The Company also expects
that Nuvera products will help the Lift Truck business
increase sales in heavy-duty applications, which are
a good fit for fuel cell-powered lift truck solutions.
In 2016, the Company introduced its new 2.0 to 3.0
ton standard Class 5 ICE lift truck, which has been
exceptionally well received by customers. In 2017,
the Company launched its new ReachStacker Big
Truck model dedicated solely to container-handling
applications, and production began on a new 11-ton
empty container handler Big Truck with a taller mast
for higher stacking and double container handling.
The Company is also working with a customer to test
a 52-ton Big Truck powered by a lithium-ion battery

Above: The new Hyster® XT 2.0 to 3.0 ton standard pneumatic-tire, internal combustion engine lift truck series is designed to fit into almost any
application or industry needing a hard-working lift truck.

|| 7

Below left: A Yale® MPR080VG enclosed end-rider truck capable of transporting multiple pallets at one time can be used in warehousing applications.
Below right: Hyster-Yale’s new “state-of-the-art” automated parts distribution system at the Company’s Nijmegen
Parts Distribution Center.

and expects to begin
working on fuel
cell-powered Big
Trucks soon.

Finally, Hyster-
Yale is expanding its
range of Big Trucks
with the addition
of Class 4 Big Trucks
manufactured by RICO, an
Ohio-based manufacturer of
large cushion-tire trucks, explosion-

proof trucks and die- and mold-handling trucks.
These new products, as well as those recently

launched, and the introduction of other new
products in the pipeline, including trucks with
Nuvera battery box replacements (“BBRs”), are
expected to contribute to market share gains,
improve revenues and enhance operating margins
in 2018 and in the long term.

In developing these products, Hyster-Yale

continues to focus on reducing the life-cycle cost of
operating its trucks and enhancing the productivity
of its customers. The Company has also focused on

8 ||

enhancing ergonomics for the operator, reducing
fuel consumption in internal combustion engine
trucks, and improving the energy efficiency and
controllability of its electric trucks, all of which
reduce customers’ direct operating costs. The
Company has also introduced automation and
telematics capabilities in its lift trucks to reduce
customers’ operating costs further. Specifically,
Hyster-Yale has had substantial growth in the use of
telematics on its trucks and now has approximately
30,000 active devices. In addition, substantially more
trucks are now being fitted with telematics before
leaving the plant than just a few years ago when
the majority of the installations were occurring as
retrofits in the field.

An increased safety focus and a shortage of
skilled labor has led to an increase in automation,
particularly in warehouse industries, and the
Company believes the demand for automated
and driverless lift trucks will continue to increase.
The Company has been responding to this trend
and has achieved early success in developing
automated solutions using a combination of its own
capabilities and those of its partners. The electronic

Above: A European Hyster® moving-mast Reach Truck shown with an enclosed cabin for working in cold storage has a basic lifting capacity of
1.4 to 2.5 tons.

The Hyster® E50XN Next Gen 4-wheel, cushion-tire, counterbalanced electric truck, shown moving barrels at a winery,
has a basic lifting capacity of 5,000 pounds.

Hyster-Yale Materials Handling I 2017 Annual Report

enhance the selling process on a global basis by
introducing enhanced sales tools.

Growing in Emerging Markets: Hyster-Yale is
focused on expanding in all markets but is dedicating
particular focus to faster-growing emerging markets.
The Company continues to add sales resources and
appoint new, stronger dealers in these regions.
Attention is also being given to expanding the
product range, as well as the competitiveness of
the products produced, to serve these markets.
As previously mentioned, in December 2017,
the Company announced its intent to acquire a
controlling interest in Maximal, a privately held,
Chinese manufacturer of utility and standard lift
trucks and specialized material handling equipment.
While Hyster-Yale has participated in the China
market for a number of years, the Company’s
market share has been limited and focused in the
premium segment. Maximal has achieved success in
the utility and standard segments in China and in a

A Yale® OS030 warehouse order picker, which has a basic lifting
capacity of 3,000 pounds, is designed for time-sensitive, order-
picking operations that demand reliability.

|| 9

architecture of many of the Company’s electric
trucks is automation-ready and certain warehouse
trucks have been converted to automated trucks
in conjunction with Balyo, Hyster-Yale’s primary
automation partner. These trucks give customers the
flexibility of using a lower-cost automation solution
for the majority of their work, but retaining the
ability to manually drive the trucks when necessary.

The Company continues to
strengthen its exclusive,
independent distribution network.

Strengthening Independent Distribution: The
Company believes that having an entrepreneurial,
exclusive, independent dealer network committed to
investments in technology, personnel development,
facilities and equipment will provide superior
customer satisfaction and a distinct competitive
advantage, while enhancing the ability to maintain
the Lift Truck business’s high ROTCE. Hyster-Yale
works closely with its dealer partners on excellence
initiatives designed to strengthen their functional
capabilities in areas such as new equipment sales,
aftermarket support, asset management, rental
fleet effectiveness, and service excellence, all of
which contribute to profitable dealer growth. The
Company also continues to strengthen its exclusive,
independent distribution network through dealer
consolidations, recapitalizations or competitor dealer
conversions, and through the Company’s dual-brand
representation strategy, in certain markets, which
is based on economies of scale and strong balance
sheets to drive profitable growth.

In 2017, a significant number of dealer transitions

resulted in a stronger overall network. In EMEA, a
new Hyster® dealer was appointed in Spain and
a new Yale® dealer was appointed in Portugal.
In the Americas, the Company increased dual-
brand coverage within the North America market
and helped facilitate an important generational
ownership transfer of a key dealer. Also during
the year, the Company worked with its dealers to

number of export markets.
This joint venture will
allow the Company

to start reaching an
expanded customer
base and more
effectively meet
customers’ needs
by broadening its
product offerings,

expanding the

Company’s low-cost, global
manufacturing capabilities, and

bringing the design and production of Hyster-Yale’s
UTILEV® product in-house. Overall, the acquisition
of Maximal lays the groundwork for increasing the
Company’s participation in the China market and
in the growing global utility and standard market
segments. Further, this joint venture is also expected
to help Hyster-Yale’s current China division operate
at the scale needed for long-term success.

Upon completion of the acquisition, the
Company intends to establish larger production

10 ||

and sourcing capabilities in China, which will
leverage China’s low-cost supply chain to support
the design and manufacture of standard and utility
products that complement Hyster-Yale’s current
standard and premium products. The Company
also believes that, by building on Maximal’s existing
local strengths, it can leverage its expertise in
manufacturing technology, product development,
sales processes and distribution to realize synergies
to provide a set of capabilities that will enhance
the Company’s ability to deliver a full range of
economic solutions to meet global customer needs,
as well as accelerate profitable share growth. To
accomplish this, the Company will establish a new
Emerging Market Development Center based
in China. In the near term, the Emerging Market
Development Center’s focus will be on launching the
next generation of UTILEV® trucks and filling critical
product gaps to permit expansion of the Company’s
customer base. The Emerging Market Development
Center will have engineers in China, at Hyster-Yale’s
facilities in India, and at other global development
centers to accelerate execution of these projects. t

Above: A Maximal Rough Terrain lift truck is available in 2- and 4-wheel drive, with lifting capacities ranging from 1.8 to 5 tons. Hyster-Yale intends to
introduce similar products to its range, supplied by the proposed joint venture.

•

Below left: The new Yale® 50MX standard pneumatic-tire, internal combustion engine lift truck has a basic lifting capacity of 5,000 pounds
and is designed to fit into almost any application or industry needing a hard-working forklift.
Below right: Hyster® R30 Order Pickers, with basic capacities of 3,000 pounds, shown at work
in a large warehouse and fulfillment center.

Hyster-Yale Materials Handling I 2017 Annual Report

Our Attachment Business

One of the Company’s core strategic initiatives is

to build its leadership in the attachments business
through Bolzoni, a stand-alone company under
Hyster-Yale’s umbrella. Bolzoni is committed to
meeting the product and handling solutions
needs of a broad range of lift truck customers,
which include many of the leading global lift truck
manufacturers. Bolzoni expects to achieve leadership
through the design, production and distribution
of a wide range of products utilized in industrial
materials handling, including integral and hook-on
sideshifters, fork positioners, push pulls, multi-pallet
handlers, rotators, paper roll clamps, bale and carton
clamps, forks and lift tables. Bolzoni made solid
progress in 2017, finishing the year strong with a
16% increase in revenues to $177.2 million and net
income of $3.9 million compared with a net loss of
$0.3 million in 2016.

For many customers, the attachment purchase
is the most important aspect of a lift truck purchase
because the attachment is what is directly handling
their goods. Bolzoni is focused on ensuring that the
attachment has all the appropriate characteristics to
move those goods around facilities undamaged and
with greater efficiency. Many of Bolzoni’s intelligent
lift truck attachments include its iMove technology,
which has the capability to analyze loads and apply
the appropriate pressure to ensure products are not
damaged in transport.

Bolzoni finished 2017 strong with
a 16% increase in revenues.

While maintaining the independence of
Bolzoni from Hyster-Yale is critical to Bolzoni’s
customer relationships, the Company still has
many opportunities to create synergies and

|| 11

improve results going forward. Bolzoni, through its
research and development facilities, is focused on
innovation and providing customized solutions for
its customers. The combination of these innovative
qualities with Hyster-Yale’s, and the ability to match
the attachment and forklift truck through the
integration of attachment sourcing for the Lift Truck
business, creates significant opportunities for joint
future growth. Since the acquisition, Hyster-Yale
has continued to implement several key strategic
programs for enhancing attachment sales, including
increased awareness of Bolzoni’s products among
end users and offering customers the option to
have Bolzoni attachments installed on trucks as part
of the manufacturing process. These programs, in
addition to the implementation of other joint Lift
Truck and Bolzoni programs, primarily related to
supplier and material cost synergies, are expected
to generate growth in revenues and a substantial
increase in operating profit and net income over
time, including in 2018, by taking advantage of
the operating leverage of sales growth. As these
programs mature, the Company expects Bolzoni
to exceed its 7% operating profit margin target,
excluding the ongoing non-cash charges associated
with acquisition accounting. t

Above: A Hyster® E50XN Next Gen four-wheel, cushion-tire, electric counterbalanced lift truck, equipped with a Bolzoni® carton clamp for handling
non-palletized loads, has a basic lifting capacity of 5,000 pounds.

12 ||

Our Hydrogen Power Business

Hyster-Yale also has a strategic initiative focused
on being a leader in fuel cells and their applications.
The Company’s acquisition of Nuvera was driven by
its view that having fuel cell power options for lift
truck markets had significant growth opportunities
and could be a product differentiator. This view
has now been reinforced by the strong interest
shown in Nuvera® products by customers, dealers
and potential partners. Hyster-Yale also believes
that the commercialization of the Nuvera fuel
cell-related technologies is an investment that
will reinforce other core strategic initiatives that
will help drive additional lift truck unit market
share growth. It also positions the Company with
an expanded power solution portfolio offering
best-in-class energy solutions to customers by
optimizing the performance and energy efficiency
of the total lift truck system in the context of the
customer application. The Company expects that
once Nuvera’s technology is fully commercialized,
participation in the fuel cell market could be a
significant market share and profit generator.

The Company expects that once
Nuvera’s technology is fully
commercialized, participation
in the fuel cell market could
be a significant market share
and profit generator.

Currently, more than 175,000 electric trucks are

sold each year in the North America market and
more than 850,000 are sold worldwide. The Company
estimates that a significant percentage of these
electric-truck users could use fuel cell-powered lift

trucks to make their operations more cost-effective
and efficient. Currently, Nuvera offers a fuel cell
engine that is a direct replacement for a lead-acid
battery, referred to as a battery box replacement
(“BBR”) unit. While commercialization of these
products is taking longer than anticipated, the
Company is pleased with the design innovation in
Nuvera’s core technologies, as well as in its current
generation of BBRs. However, production costs for
these units currently remain higher than target costs.
Nuvera and Hyster-Yale are focused on reducing
the mean time between failure rates in Nuvera’s fuel
cell BBRs to industry-leading levels and reducing
the manufacturing costs per unit as production
increases. Substantial progress is being made
in both these areas. Once production increases,
greater economies of scale can be achieved, but it
will take time to reach the target cost structure. As
a result of the current high cost structure and low
volumes, Nuvera reported a net loss of $26.7 million
in 2017, which includes the $4.9 million pre-tax asset
impairment charge discussed previously.

Due to the relatively high cost position and
limited product range of currently available BBRs,

Above: A Yale® ERC50VG four-wheel, cushion-tire, electric counterbalanced lift truck powered by a Nuvera® fuel cell battery box replacement.

Hyster-Yale Materials Handling I 2017 Annual Report

Looking Forward

The Company maintains a long-term view and
believes that the necessary strategic initiatives are
in place to help the Company achieve its long-term
business objectives. Underlying Hyster-Yale’s overall
strategic planning process is a broad program
designed to ensure sound corporate responsibility.
The Company believes that embracing social,
environmental and economic health in every part
of the organization will serve the long-term best
interests of the Company’s stockholders, while
contributing to strengthening the Company’s
customers and the communities in which it operates.
Hyster-Yale has established specific cost-effective
corporate responsibility targets through its 2026
Vision program that will minimize the Company’s
impact on the environment and conserve natural
resources. Hyster-Yale’s Corporate Responsibility
report is available at www.hyster-yale.com and

A Yale® NR040 Reach Truck, designed for warehouse
applications, with a fore/aft stance, laser-height selector and a
basic lifting capacity of 4,000 pounds, is shown moving pallets
at a coffee manufacturer.

|| 13

the Company is taking a measured approach to
developing its customer base by focusing on
building relationships with customers that are willing
to pay a premium for the high power density of
the current Nuvera BBR solution and the product
support now offered through the Lift Truck business.
In addition, the Company believes the business will
qualify for the fuel cell federal tax credit, which was
recently extended for a five-year term retroactive to
January 1, 2017. Nuvera expects to take advantage
of this to help reduce its losses during the industry’s
startup period, while keeping prices competitive with
other power options. Shipments of BBRs increased
to over 110 units in 2017. Nuvera expects shipments
to continue to increase gradually throughout 2018.
Hyster-Yale is currently preparing to roll out its BBRs
to other geographic markets. In 2016, the Company
announced an organizational realignment designed
to enhance the overall strategic positioning and
operational effectiveness of its Hydrogen Power
business, with Nuvera focused on fuel cell stacks,
engines and associated components and the Lift
Truck business focused on complete battery box
replacements and integrated engine solutions. This
realignment was completed as of December 31, 2017,
with the exception of the transition of manufacturing
of the current BBRs from Nuvera to the Lift Truck
business. By early 2019, production is expected to
begin at the Lift Truck business’s manufacturing plant
in Greenville, North Carolina, with a steady ramp-up
in demand anticipated. In that same time frame,
BBR manufacturing at Nuvera’s Billerica facility will
be phased out. With the phase-out of battery box
replacement production in Billerica, Nuvera will focus
on the design, manufacture and sales and marketing
of fuel cell stacks and engines. In addition to growing
demand for fuel cell engines used in BBRs, Nuvera
is seeing significant interest for its stacks and fuel
cell engines in applications outside of the BBR
market and believes this will become a significant
and profitable growth opportunity across a broad
spectrum of industries and applications.

The Company’s current target is to achieve break-
even within the next two years, although this target
could be achieved earlier or later depending on both
achievement of its cost reduction targets and on the
level of sales volumes for fuel cell-powered lift trucks,
as well as sales in other markets. t

describes the Company’s commitment to promote
a culture of corporate responsibility throughout the
business and the product value chain as it strives
toward the 2026 Vision.

Lift Trucks: Hyster-Yale is committed to achieving
its core Lift Truck target operating margin of 7% and
maintaining a greater than 20% ROTCE, excluding
the impact of the one-time tax reform legislation
adjustment in 2017. With expected moderate
growth in markets over the next few years, and the
increasing maturity of its strategic initiatives, the
Company believes it can attain the required volume
leverage to achieve its financial objectives. With the
substantial progress made in 2017, the anticipated
completion of the Maximal acquisition in 2018,
and additional momentum from the execution of
the core strategic initiatives, the Company believes
it is poised to grow through the rest of this market

The new European Yale® MS warehouse truck is a highly
controllable and agile pedestrian stacker suitable for lift heights
ranging from 12 to 20 feet.

14 ||

Hyster-Yale is committed
to achieving its core Lift Truck
target operating margin of
7% and maintaining a greater
than 20% ROTCE.

cycle. Key to this is its focus on increasing market
share industry-by-industry, customer-by-customer.
The Company has been investing in its strategic
initiatives, which has resulted in increasing operating
expenses. While the Company’s 2017 Lift Truck
business operating profit margin of 4.1% is below
its 7% operating profit margin target, Hyster-Yale
believes this gap can be closed mainly by increasing
unit volumes at target margins through improved
market share, but also by leveraging its technology
accelerators and its business acquisitions, despite
modest market growth. In summary, the Company
expects operating margins to increase as it
increases volume and leverages its fixed costs
and operating expenses.

Attachments, Forks and Lift Tables: The
Company expects to develop its Attachment
business into a larger business by forging strong
relationships with end users, dealers and original
equipment manufacturers, growing in lower-share
markets, and integrating attachment sourcing for the
Lift Truck business. Bolzoni’s long-term target is to
achieve at least its operating margin target of 7%.
Hydrogen Power: The Company expects its
Hydrogen Power business, over the longer term, to
move from a significant loss position to profitability
as it introduces new products, increases volumes,
lowers product costs, improves quality to industry-
leading levels and develops non-lift truck partner
arrangements. The Lift Truck business will also focus
on integrated fuel cell solutions in order to provide
even more cost-effective applications. Nuvera’s
objective is to reach breakeven over the next two
years, with a slower decline in operating losses in
2018 than in 2019 as Nuvera ramps up cost-effective

Hyster-Yale Materials Handling I 2017 Annual Report

solutions for the Lift Truck business and becomes
a trusted supplier to other customers.

Valuation: Hyster-Yale’s objective is to create
value in all of its business units. However, when
all of the businesses are viewed as one, some
valuation metrics can be misleading. The Company
believes its valuation should be the sum of the
separately assessed values of each of its businesses.
The Lift Truck and Attachment businesses, which are
in a mature, cyclical industry with market-leading
positions and solid operating cash generation,
are focused on creating value by increasing unit
volume and market share through the execution
of core strategic initiatives and gaining significant
aftermarket parts business over the longer term as
a result of the continued increase in the Company’s
installed lift truck population base. These initiatives
are expected to lead to achieving the financial
targets of these businesses.

The Hydrogen Power business, on the
other hand, is a startup business focused on

commercializing products that are complementary
and additive to the Lift Truck business. Nuvera is
in a developing-technology industry with its own
distinct characteristics. The use of hydrogen as an
alternative and clean energy source is growing and
the Company aims to be a key player in this industry
over the medium and long term. As a result, given
the early stage of the current commercialization
of Nuvera’s products, the Company believes this
business should be valued independently as a
venture business.

Hyster-Yale’s objective is to create
value in all of its business units.

Dividend and Uses of Cash: The Company
increased its annual dividend 2.5% to $1.21, or
30.25 cents per share on a quarterly basis. In the

The newly designed Hyster® J175, lithium-ion-powered, electric 8 to 9 ton lift truck for heavy-duty indoor and outdoor applications offers
a comparable performance to diesel/gas lift trucks but with zero emissions.

|| 15

future, the Company may consider additional
dividend increases or share repurchases at prices
attractive to its stockholders.

his experiences in the internal combustion engine
business over many years. We appreciate his many
contributions and wish him well.

We are a customer-focused and solutions-

We would also like to welcome H. Vincent Poor,

oriented business. We have strategies in place to gain
market share in all segments and in all markets, and
we have made investments in growth and game-
changing technologies to help us achieve our goal

Distinguished Professor of Electrical Engineering
of Princeton University, who joined our Board of
Directors in April 2017. We are privileged to have
him as a Director.

We have strategies in place to gain market share in all segments
and in all markets, and we have made investments in growth
and game-changing technologies to help us achieve our goal of becoming
a broader lift truck solutions partner.

16 ||

of becoming a broader lift truck solutions partner
to the materials handling market, one industry and
one customer at a time. We believe that our business
strategy, combined with a strong balance sheet,
financial flexibility, a solid cash position and solid
returns on capital employed in our core business,
reinforces our commitment to stockholder returns
over time and makes Hyster-Yale a compelling long-
term investment opportunity. By clearly articulating
and executing our core strategies in each of our
businesses, we believe an enhanced market multiple
valuation will be reasonable in the future.

We have great confidence in the ability of our
management team to achieve the Company’s market
share and financial objectives in the years ahead
as our many experienced and highly motivated
professionals build on the Company’s strong 2017
financial results.

t t t

In closing, we would like to recognize Joe
Loughrey, who did not stand for re-election this
past May, for his service as a director and as chair of
our Audit Review Committee. Joe brought unique
and valuable perspective to the Board as a result of

Finally, we would like to take this opportunity to
thank all of our customers, dealers and suppliers and
all of the Hyster-Yale stockholders for their continued
support. We also want to thank all of our employees
most sincerely for their hard work and commitments
to achieving our long-term goals. We are pleased
with our 2017 results and look forward to continuing
to execute our strategic plan in 2018.

We have a decades-old business with strong
brands that have earned the trust of our customers
who depend upon the performance of our products
and solutions every day. We look forward to building
successfully on this legacy for many years to come.

Alfred M. Rankin, Jr.
Chairman, President and Chief Executive Officer,
Hyster-Yale Materials Handling, Inc. and
Chairman, Hyster-Yale Group, Inc.

Colin Wilson
President and Chief Executive Officer,
Hyster-Yale Group, Inc.

This annual report to stockholders contains forward-looking statements. For a discussion of the factors that may cause the Company’s actual results to differ
from these forward-looking statements, please see page 34 in the attached Form 10-K.

Directors and Officers

Directors and Officers of Hyster-Yale Materials Handling, Inc.
Directors:

Officers:

Alfred M. Rankin, Jr.
Chairman, President and Chief Executive Officer
Colin Wilson
President and Chief Executive Officer,
Hyster-Yale Group, Inc.
Gregory J. Breier
Vice President, Tax
Brian K. Frentzko
Vice President, Treasurer
Amy E. Gerbick
Associate General Counsel, Director of Corporate Compliance
and Assistant Secretary
Jennifer M. Langer
Vice President, Controller
Lauren E. Miller
Senior Vice President, Chief Marketing Officer
Kenneth C. Schilling
Senior Vice President and Chief Financial Officer
Suzanne S. Taylor
Senior Vice President, General Counsel and Secretary

J.C. Butler, Jr.
President and Chief Executive Officer, NACCO Industries, Inc.
President and Chief Executive Officer of
The North American Coal Corporation
Carolyn Corvi
Retired Vice President and General Manager –
Airplane Programs of The Boeing Company
John P. Jumper
Retired Chief of Staff, United States Air Force
Dennis W. LaBarre
Retired Partner, Jones Day
H. Vincent Poor
Distinguished Professor of Electrical Engineering of
Princeton University
Alfred M. Rankin, Jr.
Chairman, President and Chief Executive Officer of
Hyster-Yale Materials Handling, Inc.
Chairman of Hyster-Yale Group, Inc.
Non-Executive Chairman of NACCO Industries, Inc.
Executive Chairman of Hamilton Beach Brands
Holding Company
Claiborne R. Rankin
Manager of NCAF Management, LLC, the managing member
of North Coast Angel Fund, LLC
John M. Stropki
Retired Executive Chairman of Lincoln Electric Holdings, Inc.
Britton T. Taplin
Self-employed (personal investments)
Eugene Wong
Professor Emeritus of the University of California at Berkeley

Executives and Officers of Hyster-Yale Group, Inc. and its Subsidiary Companies

Alfred M. Rankin, Jr.
Chairman
Colin Wilson
President and Chief Executive Officer
Gregory J. Breier
Vice President, Tax
Brian K. Frentzko
Vice President, Treasurer
Amy E. Gerbick
Associate General Counsel, Director of Corporate Compliance
and Assistant Secretary
Stephen J. Karas
Vice President, Global Supply Chain
Jennifer M. Langer
Vice President, Controller
Lauren E. Miller
Senior Vice President, Chief Marketing Officer
Charles F. Pascarelli
Senior Vice President, President, Americas
Rajiv K. Prasad
Chief Product and Operations Officer

Anthony J. Salgado
Senior Vice President, Japan, Asia-Pacific, India and China
Harry Sands
Senior Vice President, Managing Director, Europe,
Middle East and Africa
Kenneth C. Schilling
Senior Vice President and Chief Financial Officer
Roberto Scotti
President and Chief Executive Officer of Bolzoni S.p.A.
Gopichand Somayajula
Vice President, Global Product Development
Jon C. Taylor
President and Chief Executive Officer
of Nuvera Fuel Cells, LLC
Suzanne S. Taylor
Senior Vice President, General Counsel and Secretary
Mark H. Trivett
Vice President Finance, Europe, Middle East and Africa
Raymond C. Ulmer
Vice President Finance, Americas

Hyster-Yale maintains leading market share

positions in the Americas and worldwide

Corporate Information

Annual Meeting

Independent Registered Public Accounting Firm

The Annual Meeting of Stockholders of Hyster-Yale
Materials Handling, Inc. will be held on May 9, 2018,
at 9:00 a.m. at the corporate office located at:
5875 Landerbrook Drive, Cleveland, Ohio 44124

Form 10-K

Additional copies of the Company’s Form 10-K filed
with the Securities and Exchange Commission are
available free of charge through Hyster-Yale’s website
(www.hyster-yale.com) or by request to:

Investor Relations
Hyster-Yale Materials Handling, Inc.
5875 Landerbrook Drive, Suite 300
Cleveland, Ohio 44124
(440) 229-5168

Stock Transfer Agent and Registrar

Stockholder Correspondence:
Computershare
P.O. Box 505000
Louisville, KY 40233-5000

Overnight Correspondence:
Computershare
462 South 4th St., Suite 1600
Louisville, KY 40202

(877) 373-6374 (U.S., Canada and Puerto Rico)
(781) 575-2879 (International)

Legal Counsel
Jones Day
North Point
901 Lakeside Avenue
Cleveland, Ohio 44114

Ernst & Young LLP
950 Main Avenue, Suite 1800
Cleveland, Ohio 44113

Stock Exchange Listing

The New York Stock Exchange
Symbol: HY

Investor Relations Contact

Investor questions may be addressed to:
Investor Relations
Hyster-Yale Materials Handling, Inc.
5875 Landerbrook Drive, Suite 300
Cleveland, Ohio 44124
(440) 229-5168
E-mail: ir@hyster-yale.com

Hyster-Yale Materials Handling, Inc. Website

Additional information on Hyster-Yale may be found at the
corporate website, www.hyster-yale.com. The Company
considers this website to be one of the primary sources of
information for investors and other interested parties.

Hyster Global:

www.hyster.com

Yale Global:

www.yale.com

Nuvera Fuel Cells:

www.nuvera.com

Bolzoni:

www.bolzonigroup.com

On the Cover:
Top Right: Hyster's H90FT Fortis® internal combustion engine, pneumatic-tire lift truck has a basic lifting capacity of up to 9,000 pounds and is
equipped with a Bolzoni® paper roll attachment.
Top Left: A Yale® NR040 Reach Truck for use in warehouse applications is available in basic lifting capacities between 3,500 and 4,000 pounds.
Bottom Right: A Yale® ERC50VG four-wheel, cushion-tire, electric counterbalanced lift truck powered by a Nuvera® fuel cell battery box replacement.
Bottom Left: A Hyster® H115OHD-CH Dedicated Container Handler, equipped with a wide axle and capable of stacking containers six high, is shown
positioning a container at a port operation in California.

The Hyster® Jumbo Truck production line in Nijmegen, The Netherlands.

Contents

About the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Selected Financial and Operating Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Letter to Stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Form 10-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Directors and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114

Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Inside Back Cover

Cover Photo Captions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Inside Back Cover

Mission Statement: To be a leading, globally integrated designer,

manufacturer and marketer of a complete range of lift truck solutions by

leveraging its high-quality, application-tailored lift trucks, attachments and power

solutions to offer the lowest cost of ownership and the best overall value.

5875 Landerbrook Drive, Suite 300 | Cleveland, Ohio 44124 | www.hyster-yale.com

An Equal Opportunity Employer