What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-02-28 compared with 2021-02-24 · 57 added, 21 removed, 201 unchanged (28% of the section changed)

4 unchanged sentences

The Company, headquartered in Cleveland, Ohio, through HYG, designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally, primarily under the Hyster ® and Yale ® brand names, mainly to independent Hyster ® and Yale ® retail dealerships.

Lift trucks and component parts are manufactured in the United States, China, Northern Ireland, Mexico, the Netherlands, the Philippines, Japan, Italy, Brazil and Vietnam.

Lift trucks and component parts are manufactured in the United States, China, Northern Ireland, Mexico, the Netherlands, Brazil, the Philippines, Italy, Japan and Vietnam.

Hyster-Yale was incorporated as a Delaware corporation in 1999.

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Hyster-Yale Maximal also designs and produces specialized products in the port equipment and rough terrain forklift markets.

The results of Hyster-Yale Maximal are included in the JAPIC segment since the date of acquisition.

During 2021, the Company signed an Equity Transfer Agreement with Y-C Hongkong Holding Co., Limited (“HK Holding Co”), pursuant to which the Company expects to purchase 15% of the equity interest of Hyster-Yale Maximal from HK Holding Co for an aggregate purchase price of $25.2 million in June 2022, which will be paid in annual installments of $8.4 million beginning in June 2022 through June 2024.

Subsequently, the Company will have an option to purchase HK Holding Co's remaining interest in Hyster-Yale Maximal at any time prior to June 8, 2056 for $16.8 million.

If this option is exercised, the Company will own 100% of the equity interest of Hyster-Yale Maximal.

The Company operates Bolzoni S.p.A.

Bolzoni 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 is a leading worldwide producer and distributor of attachments, forks and lift tables marketed under the Bolzoni ® , Auramo ® and Meyer ® brand names.

Bolzoni products are manufactured in the United States, Italy, China, Germany and Finland.

1 unchanged sentence

The Company operates Nuvera Fuel Cells, LLC ("Nuvera").

Nuvera is an alternative-power, clean-energy technology company focused on the design, manufacture and sale of hydrogen fuel-cell stacks and engines.

During 2020, broad measures taken by governments, businesses and others across the globe to limit the spread of novel coronavirus ("COVID-19") adversely affected the Company.

The resulting significant decline in economic activity also reduced the demand for the Company's products and limited the availability of components from certain suppliers.

Production was significantly reduced or suspended at the Company's Chinese and European facilities for certain periods during the first and second quarters of 2020.

The Company also initiated several cost reduction measures designed to ease liquidity pressure.

These cost containment actions included spending and travel restrictions, significant reductions in temporary personnel, furloughs, suspension of incentive compensation and profit sharing, benefit reductions and salary reductions.

In addition, the Company adjusted production levels at its manufacturing plants to align more closely with the reduced levels of demand, and worked closely with suppliers to help ensure current needs were met while also ensuring continuity as the market improved.

Nuvera is an alternative-power technology company focused on the design, manufacture and sale of hydrogen fuel cell stacks and engines.

The Company makes its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports available, free of charge, through its website, www.hyster-yale.com, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the Securities and Exchange Commission ("SEC").

5 unchanged sentences

Bolzoni 6 % 5 % 5 %

Nuvera less than 1% less than 1% 1 %

Nuvera less than 1% less than 1% less than 1%

Sales of internal combustion engine lift trucks and electric lift trucks were approximately 42% and approximately 31% of annual revenues in 2021, respectively.

3 unchanged sentences

Additionally, components and assembled lift trucks are exported when it is advantageous to meet demand in certain markets.

The Company operates twelve lift truck manufacturing and assembly facilities worldwide with four plants in the Americas, three in EMEA and five in JAPIC, including joint venture operations.

The Company operates eleven lift truck manufacturing and assembly facilities worldwide with four plants in the Americas, three in EMEA and four in JAPIC, including joint venture operations.

In addition, the Company operates six principal Bolzoni manufacturing facilities worldwide.

43 unchanged sentences

("HYGFS"), and receives fees and certain remarketing profits under a joint venture agreement.

The current agreement has an initial term through December 2023 and automatically renews for additional one-year terms unless written notice is given by

either party at least 180 days prior to termination.

The current agreement has an initial term through December 2023 and automatically renews for additional one-year terms unless written notice is given by either party at least 180 days prior to termination.

The Company accounts for its ownership of HYGFS using the equity method of accounting.

10 unchanged sentences

Backlog, approximate sales value (in millions) $ 2,880 $ 2,450 $ 1,070

As of December 31, 2020, the Company expects substantially all of its backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks to be sold during fiscal 2021.

As of December 31, 2021, the Company expects substantially all of its backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks to be sold during the next twelve months.

Backlog represents unfilled lift truck orders placed with the Company’s manufacturing and assembly facilities from dealers and direct sales to customers.

1 unchanged sentence

however, the Company can assess cancellation penalties on dealer orders within a certain period prior to initiating production.

In certain circumstances, dealer orders may be cancelled, for a limited time period without penalty, after receiving notice of a surcharge on the order from the Company.

The dollar value of backlog is calculated using the current unit backlog and the forecasted average sales price per unit.

Key Suppliers and Raw Materials

At times, the Company has experienced significant increases in material costs, primarily as a result of global price increases in industrial metals, including steel, lead and copper and other commodity products, such as rubber, as a result of increased demand and limited supply.

While the Company attempts to pass these increased costs along to its customers in the form of higher prices for its products, it may not be able to fully offset the increased costs of industrial metals and other commodities, due to overall market conditions and the lag time involved in implementing price increases for its products.

The Company has experienced and is currently experiencing significant increases in material costs, primarily as a result of global price increases in industrial metals, including steel, lead and copper and other commodity products, such as rubber, as a result of increased demand and limited supply.

Given the fixed pricing of a significant portion of the current backlog, while the Company attempts to pass these increased costs along to its customers in the form of higher prices for its products, it may not be able to fully offset the increased costs of industrial metals and other commodities, due to overall market conditions and the lag time involved in implementing price increases for its products.

A significant raw material required by the Company's manufacturing operations is steel, which is generally purchased from steel producing companies in the geographic area near each of the Company's manufacturing facilities.

5 unchanged sentences

Department of Homeland Security, as well as the Company's own internal controls and security procedures.

While most components are available from numerous sources or in quantities sufficient to meet requirements, the Company has experienced shortages of key components for certain products which has affected production levels.

While most components are available from numerous sources or in quantities sufficient to meet requirements, the Company has experienced and is currently experiencing significant shortages of key components for certain products which has affected production levels.

Government and Trade Regulations

4 unchanged sentences

Competition in the materials handling industry is intense and is based primarily on strength and quality of distribution, brand loyalty, customer service, new lift truck sales prices, availability of products and aftermarket parts, comprehensive product line offerings, product performance, product quality and features and the cost of ownership over the life of the lift truck.

The Company competes with several global lift truck manufacturers that operate in all major markets, as well as other niche

The Company competes with several global lift truck manufacturers that operate in all major markets, as well as other niche companies.

The lift truck industry also competes with alternative methods of materials handling, including conveyor systems and automated guided vehicles and systems.

44 unchanged sentences

The Company’s contract with the Danville union expires in June 2024.

All employees at the Company's facilities in the United States (other than the Danville, Illinois parts depot) are not represented by unions.

All other employees at the Company's facilities in the United States are not represented by unions.

In Brazil, all employees are represented by a union.

12 unchanged sentences

The Company believes its current labor relations with both union and non-union employees are generally satisfactory.

The Company believes the long-term best interests of its stockholders are best served by embracing economic, social, environmental and health and safety objectives throughout its organization, which also contributes benefits to its customers and the communities in which it operates.

The Company has established specific cost-effective corporate goals through its 2026 Vision program that will reduce its impact on the environment and conserve natural resources.

All of this is being carried out in the context of its leadership in electric forklift and fuel cell markets which have a significant positive environmental impact.

The Company considers its employees as a primary focus area of corporate responsibility.

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Employees are encouraged to initiate safety improvements, participate in safety committees and reinforce safety behaviors at all times.

The Company's goal is to reduce the injury rate in its global operations to zero.

The Company is striving to reduce the injury and illness rates in its global operations to zero by 2026.

The Company's most recent metrics from 2020 showed an approximately 10% reduction in the injury and illness rates from the 2015 baseline.

To protect the Company's employees while maintaining essential business functions, the Company implemented COVID-19 protocols and safety measures.

Examples of these protocols include restricting travel, implementing a remote working policy where able, face covering policies and asking employees to practice self-health monitoring to further minimize potential exposure and spread of the virus.

As appropriate, the Company has also adjusted medical benefits to allow for earlier medication refills, waived fees for virtual care services and encouraged employees to consider the COVID-19 vaccine as part of their ongoing personal safety measures.

Social distancing practices such as decreasing the number of employees working closely together, adjusting workflows and pathways, installing physical protective barriers, limiting access to communal areas (i.e., break room, cafeteria), and increasing the cleaning, sanitizing, and/or disinfecting of areas within the Company's facilities continues.

At the beginning of the pandemic, the Company established divisionally specific processes for tracking and reviewing employee COVID-19 cases.

Whenever a confirmed diagnosis or potential exposure to COVID-19 occurred, teams took action to contain the situation by implementing appropriate testing or quarantine requirements, focused cleaning and sanitization while informing employees of any potential risks.

The Company’s protocols have and continue to be guided by the guidance of the World Health Organization, the Center for Disease Control, Federal/State Occupational Safety, and other governmental and health authorities.

Communication and reinforcement of the Company's COVID-19 protocols have been maintained through the Company's "COVID-19 Pandemic Guide" and ongoing communications to all employees through a variety of methods and channels.

Customer Health & Safety

2 unchanged sentences

Each of the Company's manufacturing sites uses rigorous processes and testing to ensure that its products meet or exceed application requirements.

In addition, the Company provided support and resources to our dealer network and customers to aid them in their response to the COVID-19 pandemic.

This included tools, materials, and training through our "Dealer Portal", connections with

leadership teams, and regular and consistent communications.

An example of the programs provided was the development and launch of "HY-Shield Clean", a lift truck sanitization program designed to help keep facility personnel safe during operation of lift trucks, including daily operation and service calls.

This was launched to help customers deal with fast changing conditions and maintain operations during the pandemic.

The Company recognizes the sustainability of its culture and success is strengthened when employees are respected, motivated and engaged.

5 unchanged sentences

Each employee is provided access to the guide and the digital learning platform providing a wide variety of development opportunities with little or no cost to employees.

In addition, many of our employees are required to complete annual Code of Corporate Conduct training and regular cybersecurity training.

Diversity and Equal Opportunity

1 unchanged sentence

The Company conducts surveys to monitor its performance in these areas.

The Company sponsors several employee resource groups that support employees, including the HYG Women's Network, the Veteran's Network and the Young Professional Network.

Engagement With Local Communities

1 unchanged sentence

The Company's past activities include corporate donations, volunteerism and education.

Environmental Health and Safety Responsibility

The Company is committed to accomplishing its business objectives in a manner that complies with its environmental health and safety obligations and requires all Company personnel to be responsible for their assurance, as outlined in the Code of Corporate Conduct.

All Company personnel, contractors and suppliers are required to adhere to the following guidelines:

• comply with applicable environmental, health and safety requirements;

• advise supervisors of any potential environmental or safety hazards;

• keep all work areas free from environmental, health and safety hazards;

• fulfill compliance obligations of the Company and government agencies.

In 2016, the Company established its 2026 Vision Program which, in part, established programs to be cost effectively achieved compared with a 2015 baseline as follows:

• strive to reduce carbon emission;

• strive to reduce volatile organic compound ("VOC") emissions from painting operations;

• strive to achieve zero waste to landfills at all sites;

• strive to reduce hazardous waste;

• strive to mitigate our waste footprint across all aspects of our value chain by reducing, reusing and recycling effluents and waste;

• strive to reduce water consumption;

• strive to offer alternatives that enable customers to cost-effectively reduce carbon emissions.

The Company continu es to res ponsibly manage products and packaging to make further progress with the projects set forth in the 2026 Vision Program.

While the Company has generally made progress, year over year progress was limited by COVID-19 labor shortages and supply chain disruption from 2019 to 2021.

The Company's ownership of Nuvera is considered a transformational opportunity to be a global leader in a key emerging technology with the potential for zero emissions that can also provide enhanced productivity for heavy-duty motive power applications and for certain forklift truck applications.

The objective for Nuvera is to be the preferred provider of heavy-duty fuel cell engines for zero-emissions mobility customers.

Global interest in clean energy, as well as strong interest in Nuvera products by third parties, is increasingly supporting the achievement of this objective.

In recognition of continued leadership in supplier sustainability initiatives, the Company's Hyster ® brand was listed as an Inbound Logistics’ top 75 Green Supply Chain Partners for the tenth consecutive year due largely to its lithium-ion and hydrogen fuel cell power systems and telemetry solutions.

Environmental Matters

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business