Hyster-Yale Materials Handling, Inc. Annual Report 2018

FY2018 Annual Report · Hyster-Yale Materials Handling, Inc.

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Solutions for a changing world
2018 Annual Report

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

◆ The Yale® NTA030SB Turret trucks shown

are for use in very narrow aisle warehouse applications.

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

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

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

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

Directors and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

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 ▪ 2018 Annual Report

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, including
attachments and hydrogen fuel cell power products, as
well as a variety of other power options for its lift trucks,
telematics, automation and fleet management services .

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, China, Northern
Ireland, Mexico, the Netherlands, the Philippines, Italy,
Vietnam, Japan and Brazil .

Lift truck unit volumes drive the Company’s economic

engine, and its worldwide distribution strength drives
volume, market share, economies of scale and installed
truck population . Hyster-Yale had an estimated installed
population base of over 840,000 lift trucks in operation
in more than 780 industries worldwide at the end of
2018 . This population, in turn, generates highly profitable
aftermarket parts and ancillary services 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

The Company’s hydrogen power business, Nuvera

Fuel Cells, LLC, is an alternative-power, clean-energy
technology company focused on the design, manufacture
and sale of hydrogen fuel cell stacks and engines .
Nuvera supplies fuel cell engines for use in battery box
replacements, and for integrated lift truck engines to
Hyster-Yale Group . It also supplies fuel cell stacks and
engines to external customers, integrators and partners
who use them to develop clean-energy power solutions .

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 is working to accomplish these
objectives through its core strategic initiatives:

• Provide the lowest cost of ownership, while
enhancing productivity for customers
• Be the leader in the delivery of industry- and
customer-focused solutions
• 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

Total Revenues
(in billions)

$2.8

$2.6

$3.2

$2.9

$3.5

$2.5

$1.5

Adjusted EBITDA*
(in millions)

$136.6

$152.5

$82.1

$94.2

$182.6

$200

$150

$100

$50

$(50)

■ 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

2018

2017(1)

Year Ended December 31
2016
(In millions, except per share data)

2015

2014

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

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

$ 3,174.4
38.8
$
34.3
$

$ 2,885 .2
74 .1
$
48 .9
$

$ 2,569 .7
32 .9
$
42 .3
$

$ 2,578 .1
103 .5
$
75 .1
$

$ 2,767 .2
148 .8
$
110 .2
$

0.4
34.7

2.10

2.09

(0 .3)
48 .6

2 .95

2 .94

0 .5
42 .8

2 .61

(0 .4)
74 .7

4 .58

4 .57

(0 .4)
109 .8

6 .61

6 .58

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

83.7
$
$ 1,742.1
$ 210.1
$ 527.4

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

$
$
$

67.6
(110.9)
(43.3)

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

(87.6)

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) . . . . . . . . . . . . . .

$ 1.2325
$ 61.96
31.85
$
16.561
16.540
16.602
7,700

220 .1
$
$ 1,647 .9
216 .2
$
565 .5
$

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
$

$
$
$

164 .7
(47 .3)
117 .4

$
$
$

(48 .9)
(145 .1)
(194 .0)

53 .1

77 .9

$
$
$

89 .4
(31 .3)
58 .1

$
$
$

100 .0
(44 .4)
55 .6

(7 .1)

(110 .5)

$ 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

Note: Certain amounts in prior periods have been reclassified to conform to the current period’s presentation .

(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 continuing average investments of $124 .9 million for Bolzoni and $94 .3 million for 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 .

Hyster-Yale Materials Handling ▪ 2018 Annual Report

2018

2017(1)

Year Ended December 31
2016
(In millions)

2015

2014

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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34.7
–
(0.4)
2.3
16.0
(2.4)
44.0
94.2

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

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 of tax*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed =
actual net income (loss) before interest
expense, net, after tax . . . . . . . . . . . . . . . . . . . . . .
Plus: Income tax expense impact of U .S .

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

Less: U .S . tax reform impact on
equity earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted return on capital employed =
actual return on capital employed

Year Ended December 31
2018*

(In millions, except percentage data)

2017(1)**

Lift Truck(7)(8)

Nuvera(8)

Bolzoni(8)

Consolidated

633 .3
248 .3
(368 .1)
513.5

56 .7
12 .8

(3 .3)

14 .4
(1 .6)
–
12.8

(27 .9)
0 .1

–

128 .5
45 .1
(12 .3)
161.3

5 .8
0 .8

(0 .2)

561 .7
289 .0
(161 .2)
689.5

34 .7
13 .6

(3 .5)

518 .8
247 .9
(161 .3)
605.4

48 .6
11 .0

(4 .2)

66.2

(27.8)

6.4

44.8

55.4

–

38 .2

(19 .8)

less impact of U.S. tax reform . . . . . . . . . . . . . .

66.2

(27.8)

6.4

44.8

73.8

Actual return on capital employed
percentage(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted return on capital employed
percentage(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

12.9%

9.0%

n/m

4.0%

4.5%

6.5%

6.2%

9.2%

12.2%

9.4%

* **2018 Average stockholders’ equity, debt and cash are calculated using 12/31/17 and each of 2018’s quarter ends .
***2017 Average stockholders’ equity, debt and cash are calculated using 12/31/16 and each of 2017’s quarter ends .
*** Tax rates of 26% and 38% in 2018 and 2017, respectively, represent the Company’s target U .S . marginal tax rate compared with the effective income tax rate of 6 .3%

in 2018 and 47 .9% in 2017 .

To Our Shareholders

Introduction

Hyster-Yale’s vision is to be the 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 to its customers .

increased substantially . Further investment is expected
to continue in 2019 and remain at a steady level for the
next several years .

Specific to 2018, the Company invested significant
expense dollars in building and enhancing an industry-
focused sales force, and it completed the acquisition of
a controlling interest in a Chinese lift truck manufacturer,

Hyster-Yale Materials Handling is in the midst of undertaking the
largest set of transformational programs in its history.

For a number of years, the Company has been
discussing the core strategies it established to achieve
its vision and financial objectives . These strategies have
evolved as trends continue to change, but in 2018, with
additional investments in its sales force and its products,
the Company saw these strategies start to gain real
traction . In the 2019-2020 timeframe, the Company
expects to see greater results as the overall execution
of these strategic plans and projects begins to fully
come together .

The increased momentum from Hyster-Yale’s strategic
initiatives resulted in a 9% increase in lift truck shipments
to 101,900 units and a 10% increase in revenues to
$3 .2 billion in 2018, up from $2 .9 billion in 2017 . The
Company also ended the year with strong bookings and
a significantly increased high-value backlog, up 30%
from the previous year-end .

Nevertheless, the year brought significant challenges

as the Company dealt with a number of unfavorable
external factors . Much attention was given to combating
rising commodity costs and the significant impact of
tariffs, as well as managing supply chain constraints . In
addition to this external turbulence, the Company is in the
midst of undertaking the largest set of transformational
programs in its history, which are expected to have a
significant positive impact on Hyster-Yale’s competitive-
ness, market position and economic performance over
the next three to five years . During 2017 and 2018, both
capital and expense investments in these programs

Zhejiang Maximal Forklift Co ., Limited, now HY Maximal .
Since its acquisition in June 2018, HY Maximal shipped
3,600 units and contributed $48 .9 million in revenues .
While HY Maximal’s core operations were profitable for
the year ended December 31, 2018, the Company’s
2018 consolidated operating profit was reduced by
$11 .6 million from acquisition-related costs and purchase
price accounting adjustments .

The Company also continued to invest in its

hydrogen fuel cell business, Nuvera, where among other
positive developments, substantial progress toward
commercialization was made in 2018 with two new
deals signed in China .

Finally, in September 2018, the Company and Wells

Fargo Financial Leasing, Inc . extended their vendor-
financing relationship through 2023 . The joint venture,
HYG Financial Services, Inc ., is owned 20% by Hyster-
Yale and 80% by Wells Fargo, and provides financing in
the United States for all Hyster-Yale brands, including
inventory and rental financing, as well as commercial
leases and loans .

Given the challenges faced and the additional
investments made during the year, 2018 consolidated
net income decreased to $34 .7(1) million from $48 .6(2)
million in 2017 . The Company’s balance sheet remained
strong, but more cash was used and the Company
ended the year with higher working capital because
of supply chain constraints and investments made in
its strategic initiatives .

(1) For purposes of this annual report, discussions about net income refer to net income attributable to stockholders .
(2) Included $18 .4 million of unfavorable tax reform adjustments .

Hyster-Yale Materials Handling ▪ 2018 Annual Report

A more in-depth understanding of the Company is

best achieved by focusing on each of its three highly
inter-related but independently managed businesses .

Our Lift Truck Business – Hyster-Yale Group

The global lift truck market grew 10 .2% to 1 .5 million
units in 2018, up from 1 .4 million units in 2017 . Consistent
with the prior year, all product classes had year-over-year
growth, but increases were strongest in the lower-value
Class 3 segment, which is reflective of one of the many
trends affecting the lift truck market . The Company is
currently forecasting strong but moderating lift truck
market levels in 2019, with moderate growth anticipated
in EMEA and modest growth in the Americas, driven by

increases in Brazil and Latin America . The China market
is expected to be comparable to 2018, but the rest of
the JAPIC region is expected to experience a moderate
decrease . This global market strength is expected to
continue over the next few years, but because of current
trends, the areas of strength are shifting with respect
to customer base and geographies, and there could be
pockets of cyclicality .

A number of trends are affecting customer demands
and driving new solutions . Customers are reacting to issues
of workforce availability, safety and productivity, as an
aging workforce, low unemployment and operator costs
have driven a need for more automated or robotic
products and an increased use of wireless communications .

Clockwise from top left:
◆ The Hyster® 46-38LS IH Reach Stacker has a basic lifting capacity of up to 46 tons. This product is produced in Nijmegen, the Netherlands,

and is used in railyard and port applications.

◆ A Yale® GP050MX internal-combustion engine, pneumatic-tire lift truck can handle loads up to 5,000 lbs. in a variety of applications.
◆ HY Maximal’s 45T Reach Stacker handles containers at a terminal.
◆ The new Hyster® end-rider pallet truck, equipped with ergonomic and productivity enhancing features, has a 6,000-8,000 lb. capacity.

In this environment of connectivity and technological
advancements, customers are more empowered, leading
to buyers that are more knowledgeable .

These trends contributed to a shift in product applica-
tions, as well as a shift in the Company’s customer base as
industries in the developed economies of North America
and Western Europe shift away from manufacturing
toward warehousing and distribution . These shifts have
contributed to a long-term secular shift toward electric
trucks from internal-combustion engine (“ICE”) trucks .
Environmental concerns have also helped accelerate this
trend as regulations for cleaner alternatives have grown
and are guiding the need for alternative power sources,
such as fuel cells and lithium-ion batteries .

The Company has six strategic
initiatives that interact together
and are aimed at creating
a unique and sustainable
competitive advantage.

Finally, global economic growth in a low-inflation,
rising interest rate market has driven an increased desire
for lower-cost products and a greater use of global supply
chains for increased purchasing power . This has resulted
in an increasing need for global and low-cost country
sourcing to keep product prices down, as well as the need
for a faster response from suppliers, including the need
to design products faster using more modular platforms .
The global economy has also led to a geographic shift
with strong growth in emerging markets . As a result of
this change, a shift in product demand from standard to
utility trucks has occurred as the emerging markets have
different needs, value propositions and applications .

The Company’s investments in its strategic initiatives,
and a $25 .7 million shortfall in the 2018 results from the
lag between increases in material costs and tariffs and the
realization of price increases to offset those higher costs,
had a substantial impact on the near-term profitability of
the Company’s core lift truck business . Hyster-Yale Group’s
operating profit margin declined to 2 .3% and net income
decreased to $56 .7 million in 2018 . However, while profits

declined from the prior year, the Company’s strategic
initiatives are working as evidenced by Hyster-Yale
Group’s increased market share . Delivering solid near-
term results has been and is expected to continue to be
challenged by market turbulence related to material cost
inflation and tariffs; significant, but planned, investments
in the Company’s strategic initiatives; and conscious
decisions to enter into certain deal-specific pricing
agreements at less-than-target margins to gain targeted
accounts . Despite these challenges, the Company believes
the three-to-five-year path to increased profitability is
clear and is focused on achieving Hyster-Yale Group’s
target operating margin of 7% and return on total capital
employed (“ROTCE”) of 20% or more . Hyster-Yale Group’s
ROTCE was 12 .9% in 2018 . The Company remains focused
on closing the gap in both of these financial objectives
over the medium term through aggressive execution of
its strategic initiatives .

Strategic Initiatives

The Company has six strategic initiatives that
interact together and are aimed at creating a unique
and sustainable competitive advantage . Four of the
Company’s initiatives are focused on Hyster-Yale Group,
while the remaining two are specific to the Attachment
and Fuel Cell businesses . These strategies, outlined below,
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 . The projects required to
execute fully on these initiatives have been implemented
over the last several years and many are now moving
toward completion . Further, as many of the projects
supporting these strategic initiatives are inter-related,
succeeding in one will foster success in others .

Provide the Lowest Cost of Ownership, While Enhancing
Productivity for Customers

The Company can tailor solutions to deliver the
lowest cost of ownership to meet customers’ needs
and help enhance customer productivity . Hyster-Yale
Group’s current core product portfolio spans all five major
product classes, and it continues to invest in broadening
its product range by designing and developing utility,
standard and premium products for its electric-rider,
warehouse, ICE and Big Truck product lines in all

Hyster-Yale Materials Handling ▪ 2018 Annual Report

Clockwise from top left:
◆ A Yale® MO5.0T electric robotic tow tractor with trailer equipped
with “Driven by Balyo” technology can tow up to 10,000 lbs. and
autonomously navigate through warehouse environments.
◆ A Hyster® double Reach truck equipped with robotic technology

selects a load in a warehouse.

◆ The Yale® Vision Mobile App serves as a site tool for fleet management

by providing instant insights into a fleet’s operation.

appropriate market segments . The Company currently
offers over 290 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
various gas- and fuel-powered engine options, including
new Tier V engines, for its ICE trucks . The Company sells
a high percentage of trucks with customized features to
meet the individual application needs of its customers .
Having the right product at the right price for each
application allows the Company to provide products
and solutions 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 trucks . With this focus, the Company has and
continues to develop new products in many segments
that are expected to support its increased market share
objectives . These programs are expected to lay the
groundwork for enhanced market position by providing
lower cost of ownership and enhanced productivity for
the Company’s customers .

At the core of these programs is a transformative new

set of modular and scalable product families covering
both ICE and electric trucks, which are designed to

provide enhanced flexibility for meeting customers’
application needs combined with the benefit of
lowest total cost of ownership . Implementation of
these programs is expected to begin in 2020 with the
introduction of a new range of counterbalanced trucks
that will be expanded comprehensively through 2025
to include larger counterbalanced capacities, Big Trucks
and warehouse trucks . These programs are expected
to incur significant product development and capital
expenditures over the next few years, but are expected to
lead to significant changes in supply chain sourcing and
in the Company’s various manufacturing facilities around
the world . Consolidated component volume sourced
globally from reliable partners is expected to reduce
costs and improve quality as these new products are
brought to market .

A further major initiative in product offerings will
come from the introduction of trucks manufactured by
HY Maximal in China, beginning with the launch of the
2- to 3 .5-ton pneumatic ICE utility truck in 2019, which
will be branded as UTILEV® in certain markets and Hyster®
or Yale® in others . HY Maximal is engineering a line of
high-quality and reliable trucks with enhancements
in styling, performance, ergonomics and productivity
for global markets, and a line of standard trucks for the

Chinese market . In addition, HY Maximal and Hyster-Yale
Group’s partner in India are expected to expand local
production of larger trucks .

Further, in early 2019, a new, award-winning Class 3

end-rider truck was launched in the North America
market . This truck represents a significant investment
and advancement in the Americas warehouse product
range and is targeted to low-level order picking and
horizontal transport applications . A new Reach Truck for
North America, as well as lower-cost Class 3 walkie and
stacker global products, are expected to be introduced
later in the year . Rough terrain and electrified Big
Truck products are being added to the product lineup,
including the expected launch of a new 7- to 9-ton,
dual-mode (economy and premium performance),
lithium-ion counterbalanced truck in mid-to-late 2019
for the global market .

Hyster-Yale Group is also developing automation
solutions for warehouse trucks, initially in combination
with industry partners, to further reduce the life-cycle
cost of operating trucks and enhance productivity for
customers . Some of these products are already in the
market today, and new solutions are expected to be
developed progressively over the next several years . In
addition, Hyster-Yale Group continues to expand sales of

Left:
◆ A Hyster® H16XM-12 16-ton Big Truck, specifically
engineered for foundry/smelter applications, is
shown hard at work in a foundry near Dortmund,
Germany.

Above:
◆ A new Hyster® H2.0-3.5UT utility lift truck, with basic
capacity up to 3.5 tons, is being designed, tested, and
manufactured at the HY Maximal facility in China.

Hyster-Yale Materials Handling ▪ 2018 Annual Report

telemetry products, and new generations of lift trucks will
offer a fully integrated telematics solution to help reduce
customers’ operating costs . Service offerings provide
customer interfaces, equipment connectivity, analytics,
technical integration and enterprise service automation .
Finally, Hyster-Yale Group anticipates introducing new
fuel cell battery box replacements (“BBRs”) for Class 1, 2
and 3 lift trucks over the next two years that are expected
to move the fuel cell BBR business to break-even in 2020 .

The Company believes that
detailed attention to customer
needs is the way to gain a
sustainable leading position in
the marketplace.

These new products and solutions, as well as those
recently launched, are expected to contribute to market
share gains, improve revenues and enhance operating
margins in 2019, with full momentum occurring in the
next two to three years .

Be the Leader in the Delivery of Industry- and
Customer-Focused Solutions

Customers are increasingly more knowledgeable
and expect their suppliers to be as well . The Company
believes that detailed attention to customer needs
is the way to gain a sustainable leading position in
the marketplace . The Company is passionate about
understanding customer pain points and delivering
the product performance, quality and cost to provide
solutions that will remove these pain points . To do this
more effectively, the Company has shifted its focus
from being product-centric to being industry-centric
by focusing on providing a full range of differentiated
products and solutions for specific industry and
customer applications .

To ensure the full benefit from the many product
programs previously described is realized, Hyster-Yale
Group has made a substantial expense investment in
its sales and marketing organizations to realign teams
around industry groupings . Within marketing, industry-

focused resources have been added to develop and
manage industry strategies . The higher-priority industry
strategies have been completed for North America and
Europe . Strategies are expected to be completed for all
countries, or groups of countries, around the world by
the end of 2019 and will mature and be enhanced over
future years . To support execution of these industry
strategies, Hyster-Yale Group has invested in additional
industry-focused sales capabilities to support its dealers
with accounts that are too small to be handled as
National Accounts, but that are too big for some dealers
to compete for effectively . This industry-focused structure
has been in place and highly successful in the National
Account direct sales program and is now being deployed
with the new dealer-support teams . These teams are
largely in place in North America, and to a lesser degree
in EMEA . Additional industry-focused sales capabilities
are expected to be added in other areas around the
world over the next few years . In total, the Company
believes that these investments will put it in a position
to be a leader in the delivery of industry- and customer-
focused solutions worldwide .

Be the Leader in Independent Distribution

The Company believes that independent dealers
committed to investments in technology, personnel
development, facilities and equipment will provide
superior customer satisfaction and a distinct competitive
advantage through their local knowledge and
entrepreneurial behavior, but this requires completely
committed dealers with adequate economies of scale . A
core objective is to have dealers that are fully capable of
maximizing the potential of the Hyster® and Yale® brands
in their territories, and who can leverage Nuvera® and
Bolzoni® products . The Company is committed to helping
its dealers strengthen the excellence of their activities
in all areas of their business, including leadership, sales,
parts, service, rental, leasing and remarketing, to help
differentiate them from the competition . In addition,
during 2018, the Company focused on an increase in
ownership succession-related re-engineering projects .
The Company believes that the strength of formalized
succession plans and the ability to execute accordingly
will mitigate the risk of market disruption, and it will
continue to work closely with its dealers to help facilitate
these transactions when they arise .

Hyster-Yale has been collaborating with its dealers on

initiatives to recruit, train, develop and retain qualified
service technicians, while working with trade schools,
community colleges and high schools to create awareness
around career opportunities within the material handling
industry and within our dealer network .

Also, while the new sales teams and enhanced selling

tools introduced during 2018 will support dealers’ sales
efforts, the Company will continue to upgrade its global
dealer capabilities, including establishing a regional office

in China by moving its existing Shanghai production
facility into the HY Maximal facility, which is expected
to provide improvements in efficiency and margins . This
process is expected to be complete by the end of 2019 .
At the same time, with the help of Hyster-Yale quality
and manufacturing leadership, the Company has already
been able to expand its low-cost, global manufacturing
capabilities and is using these new capabilities to provide
its distribution network with a lower-cost, global utility
product of enhanced quality .

The acquisition of HY Maximal added a wider offering to
Hyster-Yale’s suite of products and enhanced the Company’s
ability to better meet the needs of its customers.

in Singapore in early 2019 to better serve and support
the dealer network in Asia . To help these programs have
maximum impact, the Company is collaborating with its
dealers to expand a technology-based, customer service
satisfaction platform to better understand the quality of
the customers’ service experience .

This initiative, together with delivering industry- and
customer-focused solutions, amount to a new, uniquely
competitive way of serving the markets around the world .

Grow in Emerging Markets

Emerging markets typically have a strong focus on

initial purchase price versus total cost of ownership .
With the growth of emerging markets, the demand for
utility and standard products has more than doubled
over the past 10 years . Hyster-Yale’s product breadth is
mature, but the depth can be improved to better serve
the targeted emerging markets and adequately provide
the right product at the right price, with the right lead
times, to customers in these emerging markets .

The acquisition of HY Maximal added a wider offering

to the Company’s suite of products and enhanced
the Company’s ability to better meet the needs of its
customers by giving the Company a cost-effective China
product source, while also allowing the Company to
increase its participation in the China market and in the
growing global utility and standard market segments .
Hyster-Yale Group is currently rationalizing its footprint

Much of the Hyster® and Yale® utility product creation

is being done by Hyster-Yale Group’s new Emerging
Market Development Center, which is co-located in the
HY Maximal facility . The Emerging Market Development
Center has engineers in China, at Hyster-Yale’s facilities
in India, and at other global development centers to
accelerate the execution of projects . Since June 2018, the
Emerging Market Development Center’s focus has been on
launching the next generation of UTILEV® trucks and filling
critical product gaps to serve an expanding customer base .
As previously mentioned, HY Maximal began production
of the new 2- to 3 .5-ton UTILEV® truck in late 2018 .
With these additional capabilities in JAPIC, the

Company is also applying its expertise in maximizing its
local coverage and enhancing dealer performance by
developing a detailed HY Maximal global distribution
plan aimed at expanding HY Maximal’s presence in both
the emerging markets and developed markets . The
Company has made a number of investments as part
of its integration of HY Maximal to improve some of HY
Maximal’s manufacturing processes, improve its business
systems and integrate processes . The Company expects
these expenditures to continue into 2019 but then
moderate by the end of the year, with the expectation
that HY Maximal will be accretive to earnings in 2020 and
a solid driver in the long-term achievement of Hyster-Yale
Group’s 7% operating profit margin target .

Hyster-Yale Materials Handling ▪ 2018 Annual Report

Clockwise from top:
◆ The new Burns Equipment headquarters, located near Pittsburgh,
Pennsylvania. Burns Equipment is the Hyster® and Yale® dealer
covering territories in Ohio, Pennsylvania and West Virginia.
◆ Hyster's S120FT Fortis® internal-combustion engine, cushion-tire
lift truck has a basic lifting capacity of up to 12,000 pounds and is
equipped with a Bolzoni® paper roll attachment.

◆ Production of the new UTILEV® UT20-35P internal-combustion
engine, utility truck, with a lifting capacity up to 3,500 kg and
manufactured by HY Maximal, began in late 2018.

Our Attachment Business – Bolzoni

The Company’s fifth strategic initiative is to build

its leadership in the attachments business through
Bolzoni, a stand-alone company within Hyster-Yale .
The attachment strategy significantly enhances
the Company’s ability to offer tailored solutions for
customers’ detailed needs . Bolzoni is committed to
meeting the product and material handling solutions
needs of a broad range of lift truck customers,
which include many of the leading global lift truck
manufacturers . For many customers, the attachment
purchase is the most important aspect of a lift truck
purchase because the attachment is directly handling
their goods . Bolzoni is focused on ensuring that the
attachment has all the appropriate characteristics to

move those goods undamaged and with maximum
efficiency . Bolzoni expects to achieve leadership through
the design, production and distribution of a wide range
of products utilized in industrial materials handling, all
capable of improving productivity and reducing costs
for customers .

Bolzoni has had healthy growth rates since being
acquired in 2016 . In 2018, it finished the year strong
with a revenue increase of 13% to $200 .9 million and
a substantial increase in net income to $5 .8 million,
up from $3 .9 million in 2017 . While maintaining the
independence of Bolzoni from Hyster-Yale Group is
critical to Bolzoni’s customer relationships, the Company
still has many opportunities to in-source Hyster-Yale
demand and improve results going forward .

Bolzoni is pursuing aggressive projects to expand

its market position around the world . This includes
strengthening the Company’s ability to serve the North
America market by taking responsibility for Hyster-
Yale Group’s Sulligent plant, where it will manufacture
attachments and continue the plant’s support of Hyster-
Yale Group through the sale of cylinders and various
other components . Bolzoni will phase out production
at its current Homewood, Illinois, facility, but intends
to maintain certain operations in that area .

The North America market, where Hyster-Yale Group
has a strong presence, provides a large opportunity for
growth . To help capture this, Bolzoni plans to introduce
a broader range of locally produced attachments
available with shorter lead times to serve its customer
base, supported by an industry-specific marketing focus .
Bolzoni also has plans to increase its sales, marketing
and product support capabilities in North America .
The Company is also working to develop the
core Bolzoni business globally through continued
implementation of programs for enhancing attachment
sales, including increased awareness of Bolzoni’s products
among large end users and offering customers the
option to have Bolzoni attachments installed on trucks as
part of the manufacturing process . In addition, Bolzoni
has developed a China-sourced standard product line

and has plans to continue to expand this line . Bolzoni’s
current premium line of products coupled with these
standard products and an industry-focused strategy are
expected to give Bolzoni the ability to increase its sales
significantly in the Americas, JAPIC and EMEA regions .
To that end, Bolzoni has plans to establish a presence in
Brazil to help expand in Latin America . Bolzoni’s results
have been improving on a progressive basis since its
acquisition, and these programs are expected to drive
additional increases in the Company’s market position
and profitability, especially over the next three to four
years . As these programs mature, the Company expects
Bolzoni to achieve its 7% operating profit margin target .

Our Hydrogen Power Business – Nuvera

The Company aims to build a technological leadership

in fuel cells and their applications through its Nuvera
Fuel Cells business . The Company’s vision is to establish
Nuvera as the preferred provider of heavy-duty fuel
cell engines to zero-emissions mobility customers .
The Company views its ownership of Nuvera as an
extraordinarily exciting opportunity to become a global
leader in a key emerging technology that can provide
enhanced productivity for certain applications, as well
as meet new emissions solutions where desirable or
required . This view continues to be reinforced by the
strong, global interest shown in Nuvera® products by

Left:
◆ The Yale® European GP35VX internal-combustion engine, pneumatic-
tire lift truck with a Bolzoni double-pallet handling fork attachment,
allows more loads to be handled in less time, increasing productivity
and reducing handling costs.

Above:
◆ A hydrogen fuel cell filling station on the warehouse floor is easily
accessible for refueling lift trucks running with Nuvera® fuel cell
battery box replacements.

Hyster-Yale Materials Handling ▪ 2018 Annual Report

third parties, particularly in China, wanting to partner
with Nuvera through various types of arrangements .
Nuvera believes this interest can be a significant and
profitable near-term growth opportunity .

Because of more field experience with Nuvera’s
products, previously deferred revenues were realized in
2018, resulting in an increase in revenues to $12 .3 million
in 2018 from $3 .7 million in 2017 . However, production
costs for engines and BBR units currently remain higher
than target costs . The higher revenues and absence
of impairment helped to offset the current high-cost
structure, reducing Nuvera’s operating loss to $38 .3 million
in 2018 from $42 .0 million in 2017, but lower tax rates
resulted in Nuvera reporting a net loss of $27 .9 million in
2018, up from a loss of $26 .7 million in 2017 . To enhance
its cost base, Nuvera continues to work on standardizing
its products, developing a lower cost supply base and
automating various elements of stack production .

The Company believes Nuvera is approaching the
point where it will move from being a venture business
focused on commercializing leading technology to a
mature, product-based company serving the lift truck
market, as well as heavy-duty applications such as buses,
trucks and applications in the automotive sector, with an
expanding line of developed products . Nuvera expects its
core technology to move to a new generation of fuel cell
stack design over the next year with broad use in each of
these applications .

Manufacturing of BBR products at the Company’s
plant in Greenville, North Carolina, is expected to begin
during 2019 and ramp up at prudent rates . As that
occurs, BBR manufacturing at Nuvera’s facility in Billerica,
Massachusetts, will be phased out . With the transfer
of the responsibility for development of non-fuel cell
engine components and the overall assembly of BBRs to
Hyster-Yale Group, Nuvera will focus entirely on fuel cell
stacks and engines . To help sharpen its focus, Nuvera sold
its hydrogen-generating PowerTap® business to a third
party, OneH2, Inc ., in exchange for a note and a minority
ownership interest in OneH2 . OneH2 has developed an
important option for hydrogen fuel supply for forklift
truck fuel cell users .

While commercialization of these products has taken
longer than anticipated, the Company is pleased with the
design innovation in Nuvera’s core technologies, which

has led to a number of new partnership opportunities .
In 2018, Nuvera finalized agreements with two new
significant Chinese customers in different segments of
the fuel cell engine market . The first agreement is for
range extenders in the bus market, and the contract
provides compensation to Nuvera in the form of royalty
and technology services income . Fuel cell stacks used
in these engines will be manufactured exclusively by
Nuvera, initially at its facility in Billerica, with localized
China manufacturing expected at a dedicated facility
within HY Maximal in the 2019-2020 period .

The Company is pleased with the
design innovation in Nuvera’s core
technologies, which has led to
new partnership opportunities.

The second agreement is for use in an automotive
customer’s internally developed electric power train .
This agreement is an extension of an initial proof of
performance review completed during the year . The
contract is expected to generate substantial income
during 2019 . Additional phases, if successful, would be
completed over the next four years, and would result
in commercial production and the non-exclusive use
of Nuvera fuel cell stacks by the partner, with Nuvera
retaining rights to use the stacks globally .

In addition to the new Chinese agreements, earlier
in 2018, Nuvera and Hyster-Yale Group were selected
to partner with the Center for Transportation and the
Environment, and in conjunction with the California Air
Resources Board, on a project for the Port of Los Angeles .
This project is to demonstrate operation of a Hyster®
1150-CH Top-Loader Big Truck using an electrified power
train and Nuvera’s Orion®-based fuel cell engine . This will
be the first demonstration of Nuvera’s plan to develop
easily integrated, high-power fuel cell engines for use in
OEM products .

As Nuvera ramps up production of fuel cell stacks
and engines and leverages its partnership opportunities,
losses are expected to moderate substantially during
2019, with the objective of reaching break-even in

both the fourth quarter of 2019 and for the full year
of 2020, with a move toward target profitability over
the following three years .

A Forward-Looking Perspective

Hyster-Yale believes it is approaching an inflection

point in its business . The Company is undergoing a
significant transformation through the execution of
projects supporting its six core strategic initiatives, and
it is beginning to realize a return on these investments,
which is expected to increase over the course of its five-
year planning horizon . While the investment expenses
in all of these programs are expected to impact results
in the early part of 2019, significant improvement is

pricing agreements at less-than-target margins to gain
targeted accounts and for which margin improvement
efforts will take some time to mature . These deals will
have an impact on profitability, mainly in the first half
of 2019, but margins are generally expected to recover
fully from the 2018 material cost inflation and the heavily
discounted deals by the third and fourth quarters of 2019 .
In this context, Hyster-Yale Group income is expected to
improve in 2019 over 2018, but results in the first half of
the year are expected to be lower than the first half of
2018, and then improve in the second half . In 2020 and
2021, a considerable portion of the new projects outlined
above will have reached completion, and the Company
believes the full impact of these programs can lead to

The Company is undergoing a significant transformation through
the execution of projects supporting its six core strategic initiatives.

expected in the second half of the year, resulting in
an overall substantial increase in 2019 consolidated
operating profit . However, the Company’s programs are
structured as multi-year programs . While the Company is
mindful of near-term results, the focus is on achieving its
7% operating profit margin target in this three- to five-
year period . At each of the Company’s three businesses,
the investments being undertaken are expected to lead
to increased operating profit through higher volume .
Lift Trucks: With the increasing momentum and
maturity of its strategic initiatives, the Company believes
it can attain the required volume leverage of 115,000
units produced in Hyster-Yale factories to achieve its
financial objectives . Although Hyster-Yale Group’s 2018
operating profit margin was below its 7% target, the path
to increased profitability is clear . The Company expects
operating margins to improve as it increases volume and
leverages its fixed costs and operating expenses .

In the near term, Hyster-Yale Group’s efforts to find
offsets to the unprecedented, tariff-driven material cost
inflation witnessed in 2018 will mature during 2019, and
efforts to abate the most critical supplier issues, which
are still having an impact on production, are underway
with most expected to be resolved by mid-year . The
current lift truck backlog contains certain deal-specific

profitability improvements for a number of years to come .
The remainder of the programs are expected to come to
fruition in 2022 and 2023, with a few, particularly those
involving dealer structure and excellence, being more in
the nature of continuous improvement rather than
projects that reach maturity at a given time . Beginning
in 2020, further improved results are expected with
significant increases through 2023 . Hyster-Yale Group’s
objective is to meet its 7% operating profit margin target
during this period, assuming reasonable market conditions
continue, and a resolution to Brexit in a way that does not
significantly harm the Company’s business prospects .

Attachments, Forks and Lift Tables: Bolzoni’s results

are expected to improve in 2019 and in the following
years with a target of 7% operating profit, as it has
significant upside potential with its new product plans
and its growth plan, particularly for the Americas market .
Hydrogen Power: Nuvera is still having a significant

impact on the Company’s current profitability, but a
solid path forward has been established . Nuvera’s results
are expected to improve moderately in the first three
quarters with a break-even target for both the fourth
quarter of 2019 and for the 2020 full year . Significantly
improved earnings are expected at Nuvera in the 2021 to
2023 period .

Hyster-Yale Materials Handling ▪ 2018 Annual Report

Corporate Responsibility: Complementing
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 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 .

Valuation: Hyster-Yale’s objective is to create value in
all of its business units . The Company is optimistic about
its future and believes it offers a compelling investment
scenario over the next three to five years because of the

strategies it has in place and the expectations for the
execution of the many related projects over the next few
years . Current market factors, including the impact of
tariffs and deal-specific pricing, are temporary headwinds
in a solid long-term growth plan . In addition, 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 . Hyster-Yale Group and
Bolzoni are mature businesses focused on creating value
by increasing unit volume and market share through the
execution of core strategic initiatives .

Nuvera, on the other hand, is a developing-

technology startup business focused on commercializing
products that are complementary and additive to
Hyster-Yale Group . 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 stage of the
commercialization of Nuvera’s products, the Company
believes this business should be valued independently as
a venture business .

Left:
◆ A Hyster® H210HD-EC Big Truck with a double-container handling attachment lifts empty
containers in a port application.
Above:
◆ A Yale® MPB045VG walkie pallet truck is used to transport goods in a warehouse application.

Dividend and Uses of Cash: The Company increased

its annual dividend 2 .5% to $1 .24, or 31 cents per
share on a quarterly basis . In the future, the Company
may consider additional dividend increases or share
repurchases at prices attractive to its stockholders .

We believe that our business strategy, combined
with a solid balance sheet, financial flexibility and a
solid cash position, 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 2018 financial results .

We would also like to take this opportunity to thank
all of our customers, dealers, suppliers and stockholders
for their continued support . We want to thank all of our
employees most sincerely for their passion, hard work
and commitment to achieving our long-term goals and
effectively executing these transformative programs .
We are pleased with our 2018 sales accomplishments,
but disappointed that this strong year was impacted by
many external variables beyond our control . We know
that our employees are working diligently to improve
our performance in 2019, and we look forward to seeing
our strategic projects come to fruition and to celebrating
great progress in our journey to enhanced growth
and profitability .

Over many years of service, we have earned the trust
of our customers who depend upon the performance of
our products and solutions every day . We look forward to
building on this success in future years .

◆ ◆ ◆

In closing, we would like to welcome James
M . Bemowski, a former Senior Advisor for Doosan
Corporation, retired Vice-Chairman of Doosan Group and
retired Chief Executive Officer of Doosan Corporation
Business Operations, who joined our Board of Directors in
May 2018 . We are privileged to have him as a Director .

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.

◆ An electric Hyster® J3.5XN counter-
balanced truck equipped with a
side-battery exchange option, used
in a beverage application, is having
its battery quickly changed with the
assistance of a Hyster® powered
battery-exchange stacker.

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 31 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
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

James B. Bemowski
Retired Vice Chairman of Doosan Group

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.
Non-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
Stephen J. Karas
Vice President, Global Supply Chain
Jennifer M. Langer
Vice President, Controller
David LeBlanc
Vice President, Strategy, Planning and Business Development
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

Lucien Robroek
Chief Executive Officer of Nuvera Fuel Cells, LLC
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 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
Corporate Information

Annual Meeting
Annual Meeting

The Annual Meeting of Stockholders of Hyster-Yale
Materials Handling, Inc . will be held on May 17, 2019,
The Annual Meeting of Stockholders of Hyster-Yale
at 9:00 a .m . at the corporate office located at:
Materials Handling, Inc. will be held on May 9, 2018,
5875 Landerbrook Drive, Cleveland, Ohio 44124
at 9:00 a.m. at the corporate office located at:
5875 Landerbrook Drive, Cleveland, Ohio 44124

Form 10-K
Form 10-K

Additional copies of the Company’s Form 10-K filed
with the Securities and Exchange Commission are
Additional copies of the Company’s Form 10-K filed
available free of charge through Hyster-Yale’s website
with the Securities and Exchange Commission are
(www.hyster-yale.com) or by request to:
available free of charge through Hyster-Yale’s website
Investor Relations
(www.hyster-yale.com) or by request to:
Hyster-Yale Materials Handling, Inc .
Investor Relations
5875 Landerbrook Drive, Suite 300
Hyster-Yale Materials Handling, Inc.
Cleveland, Ohio 44124
5875 Landerbrook Drive, Suite 300
(440) 229-5168
Cleveland, Ohio 44124
(440) 229-5168

Stock Transfer Agent and Registrar
Stock Transfer Agent and Registrar

Stockholder Correspondence:
Computershare
Stockholder Correspondence:
P .O . Box 505000
Computershare
Louisville, KY 40233-5000
P.O. Box 505000
Louisville, KY 40233-5000
Overnight Correspondence:
Computershare
Overnight Correspondence:
462 South 4th St ., Suite 1600
Computershare
Louisville, KY 40202
462 South 4th St., Suite 1600
Louisville, KY 40202
(877) 373-6374 (U .S ., Canada and Puerto Rico)
(781) 575-2879 (International)
(877) 373-6374 (U.S., Canada and Puerto Rico)
(781) 575-2879 (International)

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

Independent Registered Public Accounting Firm
Independent Registered Public Accounting Firm

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

The New York Stock Exchange
Symbol: HY
The New York Stock Exchange
Symbol: HY

Investor Relations Contact
Investor Relations Contact

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

Hyster-Yale Materials Handling, Inc. Website
Hyster-Yale Materials Handling, Inc. Website

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

Nuvera Fuel Cells:
Bolzoni:

www.nuvera.com
www.bolzonigroup.com

Bolzoni:
Hyster-Yale Maximal:

www.bolzonigroup.com
www.maxforklift.com

On the Cover:
Top from left to right: The new Yale® MPEO60VH end-rider warehouse truck, redesigned to focus on operator needs, with a new extended
On the Cover:
platform, patented shock-absorbing floor cushion, handle and grab bar. ◆ The new 52-ton capacity Hyster® laden container handling
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
electric truck powered by a lithium-ion battery awaits shipment to the Port of Los Angeles to begin the testing phase. ◆ The new Hyster®
equipped with a Bolzoni® paper roll attachment.
electric J8.0XN integrated, lithium-ion battery lift truck has internal-combustion engine-like performance in a zero-emission design and lifts
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.
up to an 8-ton capacity.
Bottom Right: A Yale® ERC50VG four-wheel, cushion-tire, electric counterbalanced lift truck powered by a Nuvera® fuel cell battery box replacement.
Bottom from left to right: A European Yale® ERP20VF with a Bolzoni carton clamp attachment, designed for pallet-less load handling in
Bottom Left: A Hyster® H115OHD-CH Dedicated Container Handler, equipped with a wide axle and capable of stacking containers six high, is shown
warehouse and distribution centers. ◆ The Hyster® tugger (left) and Hyster® masted Walkie electric warehouse trucks are part of the Hyster®
positioning a container at a port operation in California.
robotics family utilizing “Driven by Balyo” technology, and can navigate autonomously through warehouse environments. ◆ A Yale®
ERC050VG 4-wheel electric truck powered by a Nuvera® fuel cell battery box replacement.

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