What changed in this filing

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Item 1. Business

2024-02-27 compared with 2023-02-27 · 128 added, 76 removed, 174 unchanged (54% of the section changed)

1 unchanged sentence

("Hyster-Yale" or the "Company") and its subsidiaries, including its operating company Hyster-Yale Group, Inc.

("HYG"), 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, telematics, automation and fleet management services, as well as a variety of other power options for its lift trucks.

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.

("HYG"), is a globally integrated company offering a full line of high-quality, application-tailored lift trucks and solutions aimed at meeting the specific materials handling needs of its customers.

The Company's solutions include attachments and hydrogen fuel cell power products, telematics, automation and fleet management services, as well as a variety of other power options for its lift trucks.

The Company is headquartered in Cleveland, Ohio.

Through HYG, the Company 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.

The Company owns a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.

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

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

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

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

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

Sales of internal combustion engine lift trucks and electric lift trucks were approximately 43% and approximately 30% of annual revenues in 2022, respectively.

Sales of internal combustion engine and electric lift trucks as a percentage of the Company's revenues were as follows for the year ended December 31:

2023 2022 2021

Internal combustion 44 % 43 % 42 %

Electric 30 % 30 % 31 %

Total lift truck sales 74 % 73 % 73 %

Manufacturing and Assembly

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The Company sells Hyster ® - and Yale ® -branded aftermarket parts to dealers for Hyster ® and Yale ® lift trucks.

The Company also sells aftermarket parts under the UNISOURCE™ and PREMIER™ brands to Hyster ® and Yale ® dealers for the service of

competitor lift trucks.

The Company has a contractual relationship with a third-party, multi-brand, aftermarket parts wholesaler in the Americas and EMEA whereby orders from the Company's dealers for parts for lift trucks are fulfilled by the third party who then pays the Company a commission.

The Company also sells aftermarket parts under the UNISOURCE™ and PREMIER™ brands to Hyster ® and Yale ® dealers for the service of competitor lift trucks.

The Company has a contractual relationship with a third-party, multi-brand, aftermarket parts wholesaler in the Americas and EMEA whereby orders from the Company's dealers for parts are fulfilled by the third party who then pays the Company a commission.

The Company’s marketing organization is structured in three regional divisions:

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independent dealers and a direct sales program to major customers.

In addition, the Company distributes aftermarket parts and service for its lift trucks through its independent dealers.

The Company’s end-user base is diverse and fragmented, including, among others, light and heavy manufacturers, trucking and automotive companies, rental companies, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food and beverage distributors, container handling companies and U.S.

In addition, the Company distributes aftermarket parts and services for its lift trucks through its independent dealers.

The Company’s end-user base is diverse and fragmented, including but not limited to the following industries:

light and heavy manufacturers, trucking and automotive, rental, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food and beverage distributors, container handling and U.S.

governmental agencies.

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Global Accounts

The Company operates a direct sales program to major customers for both Hyster ® and Yale ® .

The Company operates a direct sales program to major customers or global accounts for both Hyster ® and Yale ® .

This program focuses on large customers with centralized purchasing and geographically dispersed operations in multiple dealer territories.

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

During 2022, the agreement was amended to extend the term through December 2028 and automatically renews for additional one-year terms unless written notice is given by either party at least 180 days prior to termination.

During 2022, the agreement was amended to extend the term through December 2028.

The agreement 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.

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For some of these arrangements, the Company provides recourse or repurchase obligations to HYGFS or to others.

In substantially all of these transactions, a perfected security interest is maintained in the lift trucks financed, so that in the event

of a default, the Company has the ability to take title to the assets financed and sell it through the Hyster ® or Yale ® dealer network.

In substantially all of these transactions, a perfected security interest is maintained in the lift trucks financed, so that in the event of a default, the Company has the ability to take title to the assets financed and sell it through the Hyster ® or Yale ® dealer network.

Furthermore, the Company has established reserves for exposures under these agreements when required.

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Key Suppliers and Raw Materials

The Company has experienced and may continue to experience 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.

During 2022 and 2021, the Company experienced significant increases in material costs, primarily from global price increases for industrial metals, including steel, lead and copper and other commodity products, such as rubber, as a result of increased demand and limited supply.

During 2023 the Company experienced declines in some material costs which helped sustain the Company's strong margin position, however ongoing volatility in global markets and the impact on demand and supply may result in unanticipated cost increases for our product.

The Company attempts to pass these increased costs along to its customers in the form of higher prices for its products.

However, given a certain portion of the Company's current backlog is subject to fixed pricing, it may not be able to fully offset the increased market-based costs of industrial metals and other commodities due to overall market conditions and the lag time involved in implementing price increases for its products.

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

Other significant components for the Company's lift trucks are engines, axles, brakes, transmissions, batteries and chargers.

In addition, the Company depends on a limited number of suppliers for some of the Company's crucial components, including diesel and gasoline engines, which are supplied by, among others, Power Solutions International, Inc., Kubota Corp., and Cummins Inc., drive-system components, which are supplied by, among others, Dana Corporation and ZF Company, and cast-iron counterweights used to counter balance some lift trucks, which are obtained from, among others, North Vernon Industry Corp.

and Eagle Quest International Ltd.

and Kubota Corp., drive-system components, which are supplied by, among others, Dana Corporation, ZF Company and Zapi Inc., and cast-iron counterweights used to counter balance some lift trucks, which are obtained from, among others, Eagle Quest International Ltd.

and BTS5 Incorporated.

Some of these critical components are imported and subject to regulations, such as customary inspection by the U.S.

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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 and may continue to experience significant shortages of key components for certain products, which has negatively affected production levels.

Although most components are available from numerous sources or in quantities sufficient to meet requirements, the Company has experienced and may continue to experience significant shortages of key components for certain products, which has negatively affected and may in the future negatively affect production levels.

Government and Trade Regulations

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In addition, the Company’s business has been affected in the past by trade disputes between the United States and Europe.

In the future, to the extent the Company is affected by trade disputes with other foreign jurisdictions, and increased tariffs are levied on its goods or the materials the Company purchases, its results of operations may be materially adversely affected.

In the future, the Company's results of operations may be materially adversely affected to the extent the Company is affected by trade disputes with other foreign jurisdictions, and increased tariffs are levied on its goods or the materials the Company purchases.

The Company is one of the leaders in the lift truck industry with respect to market share in the Americas and worldwide.

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.

Competition in the lift truck industry is based primarily on strength and quality of dealers, brand loyalty, customer service, new lift truck sales prices, availability of products and aftermarket parts, comprehensive product line offerings, product performance, quality and innovation, including 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 companies.

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Certain employees in the Danville, Illinois parts depot operations are unionized.

The Danville union contract expires every three years at which time salaries, certain employee policies and a limited number of benefits are negotiated for the following three-year period.

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

Generally, employee benefits for Danville union employees are aligned with non-union U.S.

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

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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 are expected to 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.

The Company has established specific cost-effective corporate projects through its 2026 Aspirations program that are expected to reduce its impact on the environment and conserve natural resources.

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

The Company's priority on people focuses on five main areas:

occupational health and safety, employment, training and education, diversity and equal opportunity and engagement with local communities.

occupational health and safety, employment, diversity and equal opportunity, training and education and engagement with local communities.

Occupational Health & Safety

Strong health and safety performance is essential to the success of the Company.

The framework includes the monitoring and measurement of key performance indicators as the Company strives to ensure the health and safety of employees.

The Company believes injury and illness should be avoided, and requires all employees to be effectively trained and responsible for the assurance of safety on a daily basis.

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

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.

In February 2020, a global task force was put into place with leaders from across the Company’s global footprint to better monitor and respond to the escalating health crisis.

Since that time, this group has met consistently to focus on and establish appropriate protocols to protect the health and well-being of our employees and the various external parties that interact with our Company, as well as monitor the ongoing challenges and demands of the business.

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.

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 COVID-19 pandemic.

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

The Company works to match employees with assignments to capitalize on the skills, talents and potential of each employee.

The Company maintains seven core competencies for all employees:

be innovative, be strategic, engage others, demonstrate presence, drive for results, develop and empower, and demonstrate business acumen.

Training and Education

The Company encourages employees to pursue professional and personal development through training and educational opportunities such as the Company's "Learning and Development Guide" and "Hyster-Yale Learning Center." 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.

A robust focus on health and safety performance is a fundamental driver of the Company’s achievements.

Within the “Safety First” framework, there is diligent oversight and assessment of key performance indicators, a testament to the Company's dedication to safeguarding the holistic well-being of our workforce.

The Company's safety aspiration is for zero occupational injury or illness rates, based on the philosophy that all such injuries and illnesses are preventable.

The Company requires comprehensive training and accountability from all employees to uphold safety as a daily priority.

The Company's workforce is empowered to initiate safety improvements, engage in safety committees and reinforce safety behaviors at all times.

The Company recognizes that employees engaged in the work are the most knowledgeable about associated risks.

Therefore, the Company requires that the local safety/environmental improvement teams contain employee representatives reflective of their workforce, including hourly employees.

As expressed in the Global Environmental/Occupational Health and Safety Policy, the Company considers environmental protection, occupational health and safety and site security to be paramount to our employees, contractors and visitors and seeks to minimize and control risks to people and the environment and do so by participating in industry standard third-party certifications.

Furthermore, the Company's facilities undergo annual internal inspections against our environmental, occupational health and safety and security standards.

The Company thrives when employees feel valued, motivated and involved.

Knowing this, the Company actively seeks to align our employees with fulfilling and impactful tasks which leverage their skills, talent and potential.

The Company is committed to investing in initiatives for recruitment and talent development aimed at attracting and retaining a diverse, competent and qualified pool of skilled individuals.

Some of the employment initiatives offered include various training opportunities, an educational assistance program, competitive wage and benefit programs, promotion of diversity and inclusion initiatives, a wellness program and cultivation of an energetic corporate atmosphere.

In each country where the Company operates, the Company reviews the competitive markets to develop comprehensive benefits packages that address health and well-being, such as medical, dental and vision coverages;

financial security programs such as retirement and savings plans;

paid time off for vacation and holiday time and more.

Diversity and Equal Opportunity

The Company believes in hiring, engaging, developing and promoting people who are fully able to meet the demands of each position, regardless of race, color, religion, gender, sexual orientation, gender identity, national origin, age, veteran status or disability.

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.

The Company is dedicated to fostering a respectful and inclusive work environment.

The aspiration is for every employee and potential employee to be treated with dignity and fairness, free from any discrimination or harassment on the basis of race, color, national origin, religion, age, gender, sexual orientation or disability.

The Company firmly stands against inappropriate behavior or remarks in the workplace.

This includes conduct that creates a hostile or offensive atmosphere, disrupts work performance or harms employment opportunities.

All forms of harassment, including sexual, verbal, physical or visual, are strictly prohibited.

The Anti-Harassment and Anti-Discrimination Policy is a key component of the Company's Corporate Compliance Program.

The Company recognizes the importance of different voices and experiences in steering our growth and innovation forward.

The Company continues to develop our female employees through our Leadership Exploration and Development (LEAD) program, which is an eight-month program empowering women with skills and mindset for impactful leadership.

Through interactive sessions, readings and reflective activities, participants develop a comprehensive understanding of their strengths and learn to lead with clarity, courage, compassion and a strong business acumen.

Attendees are nominated based on their current roles as well as their potential for leadership, their career goals and aspirations as well as other key criteria.

The Company also maintains several Employee Resource Groups ("ERG"), such as the W41 Women’s Network, HYG Veterans Group, Emerging Professionals Network, Green Team and the Young Professionals Network.

These groups are employee-led and employee-run which promote diversity by bringing together employees who share similar interests or affinities.

They offer access to resources, development and leadership opportunities, and are designed to leverage the individual talents, perspectives and experiences of employees to support an inclusive workplace environment.

All regular, full-time employees are eligible to join any ERG.

Furthermore, each ERG must have a leadership sponsor who provides guidance and feedback on the group’s strategies and objectives.

Training and Education

The Company believes in the 70/20/10 Model of Employee Development, where 70% of development occurs through on-the-job experiences, 20% is learned from others and 10% is through formal training.

The Company also believes in developing its existing employee base, seeking to retain the best and brightest talent.

Therefore, employees are encouraged to seek out a mix of opportunities to enhance their professional and personal growth.

A multitude of training and educational opportunities are offered through the Company's Learning and Development Guide and the Hyster-Yale Learning Center.

Each employee is provided access to this guide and to a digital learning platform, receiving a detailed overview of the wide variety of development opportunities available to all employees at little or no cost to them.

The Company's dedication to the growth and advancement of its employees is emphasized in the Performance Management Program ("PMP").

This program harmonizes individual performance with business objectives, creating a platform for employees to make meaningful contributions to the organization through ongoing feedback and development while ultimately driving outstanding business outcomes.

The PMP encourages employee reviews in a structured manner that allows for the employee and their manager to reflect upon and discuss progress at mid-year and at year-end.

All salaried employees participate in the program, and the Company is piloting the program with hourly employees.

Engagement with Local Communities

As a major employer within many of our operating locations, the Company supports its local communities and is committed to helping them remain safe, healthy and resilient.

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

The Company believes it has a civic obligation to support educational and charitable causes.

The Board of Director’s Charitable Contributions Committee encourages the Company and each of its subsidiaries to maintain programs in support of the local communities where employees live and work.

This committee focuses its efforts on charitable contributions towards programs of the arts and sponsoring cultural, education, civic, health and welfare organizations, health care programs and minority and women’s groups, as well as other charitable programs in areas in which the Company operates.

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;

As the scope of environmental laws and regulations increases across the world, it is imperative to stay focused on the Company's compliance obligations.

In response, the Company has developed policies and procedures to address standards for the environment, which are designed to meet or exceed applicable laws and regulations.

At a minimum, all employees must adhere to the Code of Corporate Conduct, including compliance with applicable environmental, health and safety requirements as well as laws and regulations.

The Company's strategy comprises three key tenants:

• comply with all applicable environmental and health and safety requirements;

• 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.

Although the Company has generally made progress, year over year progress was limited by COVID-19 labor shortages and supply chain disruption from 2019 to 2022.

The Company manages its compliance with government and industry product safety information.

The majority of new products follow a structured and rigorous six-stage development process, with lift truck production taking place within ISO- and OHSAS-certified manufacturing sites.

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

The Company’s supply network includes both large international suppliers as well as smaller specialized providers, all of which are required to meet the stringent requirements outlined in the Company’s Supplier Quality Manual and Code of Corporate Conduct for Business Partners.

As part of the Company’s supplier screening process, all direct materials suppliers are required to ensure that they and their suppliers are compliant with The Company’s UK Modern Slavery and Forced Labor Statements, Conflict Minerals Policy and Supplier Expectations Manual and applicable data privacy and environmental laws.

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.

• comply with reporting requirements of the Company and government agencies

The Company strives to efficiently manage operational energy use and mitigate the carbon footprint across global operations.

The Company reviews and validates globally reported environmental data and seeks to normalize environmental metrics according to sequence of event hours, allowing better understanding of the efficiency of key performance indicators while accounting for changes in business volume.

Periodically, the Company will partner with a third party to perform external reviews and validations to enhance the program and build confidence with our stakeholders.

To effectively manage this program, the Company's energy and emissions management strategy is built upon three pillars:

• reduce energy consumption within the Company's operations;

• pursue renewable energy and other low-carbon sources

• collaborate with suppliers to understand their energy challenges and develop solutions

• design and deliver products that improve energy efficiency and decrease operating costs

The Company has a deep appreciation for energy and energy efficiency.

The Company consumes energy to create powerful equipment and this equipment, in turn, consumes energy while in-use.

The Company recognizes the importance of managing energy consumption as efficiently as possible both during the production and use phase of products.

To ensure there is internal accountability, oversight and focus in place for managing energy usage reduction, the Company has established divisional waste and energy committees in both the Americas and EMEA.

These committees meet monthly to discuss progress and updates on current year energy and waste reduction projects as well as plans for future initiatives.

The committees provide quarterly updates to key stakeholders within the organization to keep the business engaged with the topic and updated on the steps the Company is taking to decrease its environmental footprint among other priorities.

The Company is implementing site-specific energy policies at manufacturing facilities to support local energy management practices.

These policies ask each location to define a strategy for reducing energy consumption, to set objectives and aspirations and to periodically review and track the reduction of energy use and carbon emissions.

The implementation of these local energy policies is expected to guide the energy consumption reduction progress across the Company's internal operations.

The Company understands the importance of responsible material use, including how to manage and dispose of wastes generated within its operations.

The Company has documented source reduction as a universal first step in minimizing waste generated within chemical and waste management procedures.

Furthermore, as waste disposal options vary based on several factors, each of the Company's sites has specific policies and procedures in place to guide their materials management processes, including waste reuse and recycling efforts.

The Company also provides formal training to address handling and storage of materials, including spill prevention and emergency response procedures.

Relevant employees who routinely handle hazardous materials go through additional training, including handling, storage and disposal methods as well as additional spill response and emergency procedures.

For these employees, the Company administers an annual hazardous material management test to confirm they are prepared to work with and around such materials.

The Company's approach to waste management is built upon three pillars.

This pillar of the Company's waste management program is threaded throughout its operations from the design stage to raw materials selection to safe and efficient operations at the Company's facilities.

The reduction of raw materials purchased and consumed reduces not only operational costs but also lowers environmental impacts from the upstream raw materials to the downstream disposal methods.

Curtailing the storage of excessive materials and limiting exposure to on-site chemicals also reduces potential safety and environmental hazards.

As a result, raw material reduction and efficiency efforts are a concerted focus across the Company.

With regards to raw materials and the circular economy, the Company's “Remanufacturing” program covers 12 key components, which enable customers to exchange used parts for remanufactured items.

The Company has strived to optimize its use of raw materials and allow valuable resources to remain in circulation.

As part of the Company's Supplier Engagement Manual, specific procedures are in place to assess whether its customers are supported and their expectations are met.

The Company has also implemented rules around packaging to assess whether the design and strength of the packaging minimizes cost of materials, labor and shipping.

The Company's sites prioritize waste minimization first, followed by reuse and recycling.

Waste reduction efforts have been further supported by ongoing initiatives and campaigns to increase awareness of recycling capabilities.

The three pillar approach drives zero waste to landfill aspirations within the Company's 2026 Aspirations program:

• Minimize and reduce landfilled waste at all global facilities

• Encourage non-pollution technologies in product research and development

• Remanufacturing program to return used parts and replace them with remanufactured parts

• Ensure multiple lifecycles of the Company's reusable parts, mitigating the need for raw materials for new parts

• Widespread use of returnable packaging across the Company's product lines

• Emphasized use of material reduction and recyclability for expendable packaging

• Supplier packaging guidelines to promote the use of recyclable materials

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