HYSTER-YALE MATERIALS HANDLING, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (tabular amounts in millions, except per share and percentage data) (Form 10-Q)

Hyster-Yale Materials Handling, Inc. ("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,
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. The materials handling
business historically has been cyclical because the rate of orders for lift
trucks fluctuates depending on the general level of economic activity in the
various industries and countries its customers serve. 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 Maximal Forklift (Zhejiang) Co., Ltd. ("Hyster-Yale Maximal") is a
Chinese manufacturer of low-intensity and standard lift trucks and specialized
material handling equipment. Hyster-Yale Maximal also designs and produces
specialized products in the port equipment and rough terrain forklift markets.
During 2021, the Company signed an Equity Transfer Agreement with Y-C Hongkong
Holding Co., Limited ("HK Holding Co"). In June 2022, the Company purchased 15%
of the equity interest of Hyster-Yale Maximal from HK Holding Co for an
aggregate purchase price of $25.2 million, which will be paid in annual
installments of $8.4 million beginning June 2022 through June 2024. The Company
has 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. As of September 30, 2022, the Company owns a 90% majority interest in
Hyster-Yale Maximal.

The Company operates Bolzoni S.p.A. ("Bolzoni"). 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. Through the design,
production and distribution of a wide range of attachments, Bolzoni has a strong
presence in the market niche of lift truck attachments and industrial material
handling.

The Company operates Nuvera Fuel Cells, LLC (“Nuvera”). Nuvera is an alternative energy technology company focused on the design, manufacture and sale of fuel cells and hydrogen engines.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Please refer to the discussion of Critical Accounting Policies and Estimates as
disclosed on pages 15 through 18 in the Company's Annual Report on Form 10-K for
the year ended December 31, 2021. Critical Accounting Policies and Estimates
have not materially changed since December 31, 2021.

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FINANCIAL ANALYSIS

The operating results of the Company are as follows:

                                                 THREE MONTHS ENDED                    Favorable /                   NINE MONTHS ENDED                   Favorable /
                                                    SEPTEMBER 30                      (Unfavorable)                    SEPTEMBER 30                     (Unfavorable)
                                                2022                2021                % Change                  2022               2021                 % Change
Lift truck unit shipments (in thousands)
Americas                                        13.9                13.7                         1.5  %            42.4               39.0                         8.7  %
EMEA                                             7.1                 6.2                        14.5  %            21.4               18.6                        15.1  %
JAPIC                                            3.5                 3.3                         6.1  %             9.9               10.6                        (6.6) %
                                                24.5                23.2                         5.6  %            73.7               68.2                         8.1  %
Revenues
Americas                                  $    571.3             $ 494.3                        15.6  %       $ 1,725.6          $ 1,433.1                        20.4  %
EMEA                                           159.4               153.4                         3.9  %           513.9              499.2                         2.9  %
JAPIC                                           65.5                56.1                        16.8  %           182.1              181.6                         0.3  %
Lift truck business                            796.2               703.8                        13.1  %         2,421.6            2,113.9                        14.6  %
Bolzoni                                         82.2                90.0                        (8.7) %           263.7              254.3                         3.7  %
Nuvera                                           1.2                 0.2                       500.0  %             2.1                0.5                       320.0  %
Eliminations                                   (39.5)              (45.8)                      (13.8) %          (124.3)            (122.7)                        1.3  %
                                          $    840.1             $ 748.2                        12.3  %       $ 2,563.1          $ 2,246.0                        14.1  %
Gross profit (loss)
Americas                                  $     60.2             $  44.5                        35.3  %       $   193.3          $   190.2                         1.6  %
EMEA                                             8.3                18.5                       (55.1) %            34.0               68.6                       (50.4) %
JAPIC                                            6.1                 3.9                        56.4  %            14.5               16.7                       (13.2) %
Lift truck business                             74.6                66.9                        11.5  %           241.8              275.5                       (12.2) %
Bolzoni                                         13.7                15.2                        (9.9) %            51.4               47.4                         8.4  %
Nuvera                                          (2.0)              (16.5)                       87.9  %            (5.5)             (22.3)                       75.3  %
Eliminations                                     0.6                (0.5)                          n.m.            (0.5)              (0.7)                          n.m.
                                          $     86.9             $  65.1                        33.5  %       $   287.2          $   299.9                        (4.2) %
Selling, general and administrative
expenses
Americas                                  $     59.3             $  61.4                         3.4  %       $   184.9          $   178.9                        (3.4) %
EMEA                                            21.5                19.4                       (10.8) %            69.4               65.7                        (5.6) %
JAPIC                                            9.0                 7.4                       (21.6) %            25.1               24.6                        (2.0) %
Lift truck business                             89.8                88.2                        (1.8) %           279.4              269.2                        (3.8) %
Bolzoni                                         15.0                15.2                         1.3  %            47.2               47.0                        (0.4) %
Nuvera                                           7.0                16.0                        56.3  %            19.5               29.0                        32.8  %

                                          $    111.8             $ 119.4                         6.4  %       $   346.1          $   345.2                        (0.3) %
Operating profit (loss)
Americas                                  $      0.9             $ (16.9)                      105.3  %       $     8.4          $    11.3                       (25.7) %
EMEA                                           (13.2)               (0.9)                          n.m.           (35.4)               2.9                           n.m.
JAPIC                                           (2.9)               (3.5)                       17.1  %           (10.6)              (7.9)                      (34.2) %
Lift truck business                            (15.2)              (21.3)                       28.6  %           (37.6)               6.3                           n.m.
Bolzoni                                         (1.3)                  -                           n.m.             4.2                0.4                           n.m.
Nuvera                                          (9.0)              (32.5)                       72.3  %           (25.0)             (51.3)                       51.3  %
Eliminations                                     0.6                (0.5)                          n.m.            (0.5)              (0.7)                          n.m.
                                          $    (24.9)            $ (54.3)                          n.m.       $   (58.9)         $   (45.3)                          n.m.
Interest expense                          $      7.7             $   4.1                       (87.8) %       $    18.9          $    10.7                       (76.6) %
Other (income) expense                    $     (0.2)            $  (2.1)                      (90.5) %       $    (2.3)         $    (8.1)                      (71.6) %


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                                             THREE MONTHS ENDED                  Favorable /                 NINE MONTHS ENDED                  Favorable /
                                                SEPTEMBER 30                    (Unfavorable)                   SEPTEMBER 30                   (Unfavorable)
                                            2022              2021                % Change                 2022              2021                % Change

Net loss attributable to shareholders $(37.3) $(77.2)

              51.7  %       $  (81.7)         $ (69.7)                      (17.2) %
Loss per share                          $   (2.20)         $ (4.59)                       52.1  %       $  (4.84)         $ (4.15)                      (16.6) %
Reported income tax rate                    (13.0) %         (36.4) %                                       (5.3) %         (42.8) %
n.m. - not meaningful



Following is the detail of the Company's unit shipments, bookings and backlog of
unfilled orders placed with its manufacturing and assembly operations for new
lift trucks, reflected in thousands of units. Unit backlog as of September 30,
2022, excludes 2,600 suspended orders, for which the Company currently has no
defined plans to fulfill. As of September 30, 2022, substantially all of the
Company's backlog is expected to be sold within the next twelve months.

                                             THREE MONTHS ENDED                NINE MONTHS ENDED
                                                SEPTEMBER 30                      SEPTEMBER 30
                                          2022                2021          2022                2021
Unit backlog, beginning of period       112.0                84.9         105.3                40.6
Unit shipments                          (24.5)              (23.2)        (73.7)              (68.2)
Unit bookings                            20.7                37.1          76.6               126.4

Unit backlog, end of period             108.2                98.8         108.2                98.8



The following is the detail of the approximate sales value of the Company's lift
truck unit bookings and backlog, reflected in millions of dollars. The dollar
value of bookings and backlog is calculated using the current unit bookings and
backlog and the forecasted average sales price per unit.
                                            THREE MONTHS ENDED              NINE MONTHS ENDED
                                               SEPTEMBER 30                   SEPTEMBER 30
                                             2022            2021           2022          2021
Bookings, approximate sales value      $      680          $   910      $    2,390      $ 2,950
Backlog, approximate sales value       $    3,700          $ 2,450      $   

3,700 $2,450

Third quarter of 2022 versus third quarter of 2021

The following table identifies the components of the change in revenue for the third quarter of 2022 compared to the third quarter of 2021:

                                     Revenues
2021                                $  748.2
Increase (decrease) in 2022 from:
Price                                   81.7
Parts                                   22.5
Unit volume and product mix             10.9
Other                                    7.7
Eliminations                             6.3
Nuvera revenues                          1.0
Foreign currency                       (30.4)
Bolzoni revenues                        (7.8)

2022                                $  840.1



Revenues increased 12.3% to $840.1 million in the third quarter of 2022 from
$748.2 million in the third quarter of 2021. The increase was primarily due to
improved pricing and higher parts volumes, mainly in the Americas. The
improvement in revenue was partially offset by unfavorable currency movements,
primarily in EMEA, from the translation of sales into U.S. dollars.

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America’s revenue increased in Q3 2022 compared to Q3 2021, primarily due to improved pricing and higher parts sales.

EMEA's revenues increased in the third quarter of 2022 compared with the third
quarter of 2021 due to improved unit and parts volume and favorable pricing.
These improvements were partially offset by unfavorable foreign currency
movements of $27.6 million from the translation of sales into U.S. dollars.

JAPIC’s revenues increased in the third quarter of 2022 compared to the third quarter of 2021, mainly due to higher unit volume and improved prices, partially offset by unfavorable foreign exchange movements of $2.3 million translation of sales into WE dollars.

by Bolzoni revenue decreased in the third quarter of 2022 compared to the third quarter of 2021 primarily due to lower volume and unfavorable currency movements of $5.5 million translation of sales into WE
dollars, partially offset by improved prices.

The following table identifies the components of change in operating profit
(loss) for the third quarter of 2022 compared with the third quarter of 2021:
                                                           Operating Profit (Loss)
2021                                                      $                  (54.3)

Increase (decrease) in 2022 from:
Nuvera operations                                                           

23.5

Lift truck gross profit                                                     

8.8

Lift truck selling, general and administrative expenses                       (1.6)
Bolzoni operations                                                            (1.3)

2022                                                      $                  (24.9)



The Company recognized an operating loss of $24.9 million in the third quarter
of 2022 compared with an operating loss of $54.3 million in the third quarter of
2021. The change in operating loss was primarily from the absence of $24.8
million of charges related to the impairment of Nuvera's property, plant and
equipment and inventory losses recorded in the third quarter of 2021. Lift truck
gross profit increased due to improved pricing of $81.7 million and higher unit
and parts volumes. The increase in gross profit was partially offset by $68.4
million of material and freight cost inflation as well as manufacturing
inefficiencies due to supply chain and logistics constraints, primarily in the
Americas and EMEA. In addition, unfavorable foreign currency movements,
including derivative contracts, of $13.6 million reduced the improvements in
lift truck gross profit.

The Americas recognized operating profit of $0.9 million in the third quarter of
2022 compared with an operating loss of $16.9 million in the third quarter of
2021 due to an increase in gross profit. Gross profit improved primarily due to
higher pricing of $64.9 million and increased parts and units volume. The
improvement in gross profit was partly offset by material cost inflation of
$30.3 million, higher manufacturing costs of $15.3 million resulting from
inefficiencies associated with component shortages and unfavorable foreign
currency movements of $8.5 million.

EMEA recognized an operating loss of $13.2 million in the third quarter of 2022
compared with $0.9 million in the third quarter of 2021. Gross profit decreased
primarily from increases in material and freight costs and higher manufacturing
costs resulting from inefficiencies associated with component shortages and
unfavorable foreign currency movements of $5.2 million. These decreases more
than offset the favorable impact of improved pricing and higher unit and parts
volumes.

JAPIC's operating loss decreased to $2.9 million in the third quarter of 2022
compared with $3.5 million in the third quarter of 2021, primarily due to higher
gross profit from improved pricing and higher unit volume, partially offset by
an unfavorable shift in sales to lower-margin trucks.

Bolzoni's operating loss increased by $1.3 million in the third quarter of 2022
from the third quarter of 2021, mainly due to lower gross profit from material
cost inflation partially offset by higher pricing.

Nuvera's operating loss decreased to $9.0 million in the third quarter of 2022
compared with $32.5 million in the third quarter of 2021 from the absence of
$24.8 million of charges related to the impairment of Nuvera's property, plant
and equipment and inventory losses recorded in the third quarter of 2021.
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Contents

The Company recognized a net loss attributable to stockholders of $37.3 million
in the third quarter of 2022 compared with $77.2 million in the third quarter of
2021. The decrease in net loss was primarily the result of the factors affecting
operating loss and the absence of $38.4 million provided against deferred tax
assets in the third quarter of 2021. See Note 5 of the Company's condensed
consolidated financial statements for further discussion of the Company's income
tax provision. The improved net loss was partially offset by higher interest and
pension expense.

Comparison of the first nine months of 2022 with the first nine months of 2021

The following table identifies the components of the variation in revenue for the first nine months of 2022 compared to the first nine months of 2021:

                                        Revenues
2021                                   $ 2,246.0
Increase (decrease) in 2022 from:
Price                                      185.5
Unit volume and product mix                 89.2
Parts                                       64.3
Other                                       32.5
Bolzoni revenues                             9.4
Nuvera revenues                              1.6
Foreign currency                           (63.8)
Eliminations                                (1.6)

2022                                   $ 2,563.1



Revenues increased 14.1% to $2,563.1 million in the first nine months of 2022
from $2,246.0 million in the first nine months of 2021. The increase was
primarily due to improved pricing and a shift in sales to higher-priced lift
trucks in the Americas and EMEA, higher unit and parts volume in the Americas,
EMEA and Bolzoni and favorable aftermarket sales. The improvement in revenue was
partially offset by unfavorable currency movements from the translation of sales
into U.S. dollars.

America's revenues increased in the first nine months of 2022 compared with the
first nine months of 2021, primarily from improved pricing of lift trucks,
favorable aftermarket sales, including part sales, higher unit volumes and a
shift in sales to higher-priced lift trucks.

EMEA revenue increased primarily due to improved unit and parts volume and favorable pricing. These improvements were partially offset by unfavorable foreign exchange movements of $63.1 million translation of sales into
WE dollars.

JAPIC's revenues increased slightly as a result of improved pricing, partially
offset by lower unit and part volumes and unfavorable foreign currency movements
of $4.1 million.

Bolzoni's revenues increased mainly due to improved pricing, partially offset by
unfavorable foreign currency movements of $13.8 million from the translation of
sales into U.S. dollars in the first nine months of 2022 compared with the first
nine months of 2021.

The following table identifies the components of the change in operating profit for the first nine months of 2022 compared to the first nine months of 2021:

                                                                                  Operating
                                                                                Profit (Loss)
2021                                                                           $      (45.3)

Increase (decrease) in 2022 from:
Lift truck gross profit                                                     

(33.5)

Lift truck selling, general and administrative expenses                               (10.2)

Nuvera operations                                                                      26.3
Bolzoni operations                                                                      3.8
2022                                                                           $      (58.9)


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The Company recognized an operating loss of $58.9 million in the first nine
months of 2022 compared with an operating loss of $45.3 million in the first
nine months of 2021. The higher operating loss was primarily due to lower gross
profit in the lift truck business partially offset by the absence of $24.8
million of charges related to the impairment of Nuvera's property, plant and
equipment and inventory losses recorded in the first nine months of 2021. Lift
truck gross profit declined mainly due to $222.9 million of material cost
inflation and higher manufacturing costs resulting from inefficiencies
associated with component shortages and unfavorable foreign currency movements,
including derivative contracts, of $30.5 million. The decrease in gross profit
was partially offset by favorable pricing of $185.6 million and improved parts
volume in the Americas and EMEA.

Operating profit in the Americas decreased to $8.4 million in the first nine
months of 2022 compared with $11.3 million in the first nine months of 2021 as a
result of higher operating expenses partially offset by an increase in gross
profit. The increase in selling, general and administrative expenses primarily
resulted from higher employee-related expenses, including $9.5 million of
incentive compensation. Gross profit improved as result of favorable pricing of
$156.2 million and improved parts volume. The increase in gross profit was
partially offset as result of material and freight cost inflation of $113.8
million, higher manufacturing costs resulting from inefficiencies associated
with component shortages of $43.1 million and unfavorable foreign currency
movements, including derivative contracts, of $18.4 million.

EMEA recognized an operating loss of $35.4 million in the first nine months of
2022 compared with operating profit of $2.9 million in the first nine months of
2021 mainly as a result of lower gross profit. Gross profit decreased due to
material cost inflation of $54.5 million, unfavorable foreign currency movements
of $11.6 million and higher manufacturing costs resulting from inefficiencies
associated with component shortages. The decrease in gross profit was partially
offset by improved pricing and higher unit and parts volumes.

JAPIC's operating loss increased to $10.6 million in the first nine months of
2022 from $7.9 million in the first nine months of 2021, primarily due to lower
gross profit from a shift in mix to lower-margin products, material cost
inflation and manufacturing inefficiencies, partially offset by improved
pricing.

Bolzoni's operating profit increased to $4.2 million in the first nine months of
2022 compared with $0.4 million in the first nine months of 2021 due to higher
gross profit from improved pricing and a shift in mix to higher-margin products,
partially offset by material cost inflation and unfavorable foreign currency
exchange rates.

Nuvera's operating loss decreased to $25.0 million in the first nine months of
2022 compared with $51.3 million in the first nine months of 2021 from the
absence of $24.8 million of charges related to the impairment of Nuvera's
property, plant and equipment and inventory losses recorded in the first nine
months of 2021.

The Company recognized a net loss attributable to stockholders of $81.7 million
in the first nine months of 2022 compared with $69.7 million in the first nine
months of 2021. The increase in net loss was primarily the result of the factors
affecting the operating loss, higher interest expense, the absence of a $4.6
million gain related to the sale of the Company's preferred shares of OneH2,
Inc. in the first nine months of 2021 and higher pension expense. The increase
was partially offset by the absence a valuation allowance of $38.4 million
provided against deferred tax assets in the third quarter of 2021. See Note 5 of
the Company's condensed consolidated financial statements for further discussion
of the Company's income tax provision.

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LIQUIDITY AND CAPITAL RESOURCES

Cash flow

The following tables detail the changes in cash flow for the nine months ended
September 30:
                                                         2022          2021         Change
Operating activities:
Net loss                                               $ (79.5)     $  (68.4)      $ (11.1)
Depreciation and amortization                             33.0          34.7          (1.7)
Dividends from unconsolidated affiliates                  15.6           5.5          10.1

Impairment charge                                            -          10.0         (10.0)
Working capital changes
Accounts receivable                                      (41.3)        (70.6)         29.3
Inventories                                              (43.6)       (261.9)        218.3
Accounts payable and other liabilities                   156.8         173.1         (16.3)
Other current assets                                      (3.4)        (12.2)          8.8
Other operating activities                                (3.3)         (2.0)         (1.3)
Net cash provided by (used for) operating activities      34.3        (191.8)        226.1
Investing activities:
Expenditures for property, plant and equipment           (19.7)        (29.5)          9.8
Proceeds from the sale of assets and investment            0.9          19.4         (18.5)
Purchase of noncontrolling interest                       (8.4)            

– (8.4)

Net cash used for investing activities                   (27.2)        

(10.1) (17.1)

Cash flow before financing activities                  $   7.1      $ 

(201.9) $209.0


Net cash provided by (used for) operating activities changed $226.1 million in
the first nine months of 2022 compared with the first nine months of 2021,
primarily as a result of changes in working capital items and the net loss. The
changes in working capital were mainly due to a smaller increase in inventory,
accounts receivable and accounts payable in the first nine months of 2022
compared with the first nine months of 2021.

The change in net cash used for investing activities during the first nine
months of 2022 compared with the first nine months of 2021 was due to the
absence of the proceeds from the sale of preferred shares of OneH2 in 2021 and
the current year's installment purchase of Hyster-Yale Maximal's noncontrolling
interest in 2022.
                                                               2022               2021              Change
Financing activities:
Net increase of long-term debt and revolving credit
agreements                                                 $    14.7          $   138.7          $  (124.0)
Cash dividends paid                                            (16.4)             (16.2)              (0.2)
Financing fees paid                                                -               (7.6)               7.6
Other                                                           (0.2)              (0.2)                 -

Net cash provided by (used for) financing activities $(1.9)

$114.7 $(116.6)



The change in net cash provided by (used for) financing activities in the first
nine months of 2022 compared with the first nine months of 2021 was primarily
due to a smaller increase in borrowings during the first nine months of 2022
versus the first nine months of 2021, partially offset by the absence of
financing fees paid in 2021.

Fundraising activities

The Company has a $300.0 million secured, floating-rate revolving credit
facility (the "Facility") that expires in June 2026. There were $127.0 million
of borrowings outstanding under the Facility at September 30, 2022. The
availability under the Facility at September 30, 2022 was $168.8 million, which
reflects reductions of $4.2 million for letters of credit and other
restrictions. As of September 30, 2022, the Facility consisted of a U.S.
revolving credit facility of $210.0 million and a non-U.S. revolving credit
facility of $90.0 million. The Facility can be increased up to $400.0 million
over the term of the Facility in minimum increments of $10.0 million, subject to
approval by the lenders. The obligations under the Facility are generally
secured by a first priority lien on working capital assets of the borrowers in
the Facility, which includes but is not limited to
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cash and cash equivalents, accounts receivable and inventory, and a second
priority lien on the present and future shares of capital stock, fixtures and
general intangibles consisting of intellectual property. The approximate book
value of assets held as collateral under the Facility was $1.0 billion as of
September 30, 2022.

Borrowings under the Facility bear interest at a floating rate, which can be a
base rate, LIBOR or EURIBOR, as defined in the Facility, plus an applicable
margin. The applicable margins are based on the total excess availability, as
defined in the Facility, and range from 0.25% to 0.75% for U.S. base rate loans
and 1.25% to 1.75% for LIBOR, EURIBOR and non-U.S. base rate loans. The
applicable margins, as of September 30, 2022, for U.S. base rate loans and LIBOR
loans were 0.50% and 1.50%, respectively. The applicable margin, as of
September 30, 2022, for non-U.S. base rate loans and LIBOR loans was 1.50%. The
applicable interest rate for borrowings outstanding under the Facility on
September 30, 2022 was 6.75% and 2.18% for the U.S. and foreign base rate loans,
respectively. There were no U.S. base rates loans outstanding on September 30,
2022. The applicable interest rates for borrowings for the U.S. LIBOR loans
ranged from 4.05% to 4.62% at September 30, 2022. The Facility also required the
payment of a fee of 0.25% per annum on the unused commitments as of
September 30, 2022.

The Facility includes restrictive covenants, which, among other things, limit
additional borrowings and investments of the Company subject to certain
thresholds, as provided in the Facility. The Facility limits the payment of
dividends and other restricted payments the Company may make unless certain
total excess availability and/or fixed charge coverage ratio thresholds, each as
set forth in the Facility, are satisfied. The Facility also requires the Company
to achieve a minimum fixed charge coverage ratio when total excess availability
is less than the greater of 10% of the total borrowing base, as defined in the
Facility, and $20.0 million. At September 30, 2022, the Company was in
compliance with the covenants in the Facility.

The Company also has a $225.0 million term loan (the "Term Loan"), which matures
in May 2028. The Term Loan requires quarterly principal payments on the last day
of each March, June, September and December in an amount equal to $562,500 and
the final principal repayment is due in May 2028. The Company may also be
required to make mandatory prepayments, in certain circumstances, as provided in
the Term Loan. At September 30, 2022, there was $222.2 million of principal
outstanding under the Term Loan which has been reduced in the unaudited
condensed consolidated balance sheet by $4.3 million for discounts and
unamortized deferred financing fees.

The obligations under the Term Loan are generally secured by a first priority
lien on the present and future shares of capital stock, U.S. material real
property, fixtures and general intangibles consisting of intellectual property
and a second priority lien on U.S. working capital assets of certain borrowers
of the Facility, which includes, but is not limited to cash and cash
equivalents, accounts receivable and inventory. The approximate book value of
assets held as collateral under the Term Loan was $730 million as of
September 30, 2022.


Borrowings under the Term Loan bear interest at a floating rate, which can be a
base rate or Eurodollar rate, as defined in the Term Loan, plus an applicable
margin. The applicable margin, as provided in the Term Loan, is 2.50% for base
rate loans and 3.50% for Eurodollar loans. In addition, the Term Loan includes a
Eurodollar rate floor of 0.50%. The interest rate on the amount outstanding
under the Term Loan at September 30, 2022 was 6.62%. The Company holds $180.0
million of contracts that hedge interest payments of Term Loan borrowings. See
Note 7 of the Company's condensed consolidated financial statements for further
discussion.


In addition, the Term Loan includes restrictive covenants, which, among other
things, limit additional borrowings and investments of the Company subject to
certain thresholds, as provided in the Term Loan. The Term Loan limits the
payment of dividends and other restricted payments the Company may make up to
$50.0 million in any fiscal year, unless the consolidated total net leverage
ratio, as defined in the Term Loan, does not exceed 2.50 to 1.00 at the time of
the payment. At September 30, 2022, the Company was in compliance with the
covenants in the Term Loan.

The Company had other debt outstanding, excluding finance leases, of
approximately $170.2 million at September 30, 2022. In addition to the excess
availability under the Facility of $168.8 million, the Company had remaining
availability of $21.9 million related to other non-U.S. revolving credit
agreements.

The Company estimates that the funds available from cash, the facility, other available lines of credit and operating cash flow will provide sufficient liquidity to meet its operating needs and commitments over the next twelve months and until the expiry of the facility in June 2026.

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Contractual Obligations, Contingent Liabilities and Commitments

Since December 31, 2021, there have been no significant changes in the total
amount of the Company's contractual obligations or commercial commitments, or
the timing of cash flows in accordance with those obligations, as reported on
pages 25 and 26 in the Company's Annual Report on Form 10-K for the year ended
December 31, 2021.

Capital Expenditures

The following table summarizes actual and planned capital expenditures:

                                                Nine Months Ended           Planned for           Planned 2022
                                               September 30, 2022        Remainder of 2022            Total              Actual 2021
Lift truck business                            $           14.7          $         10.5          $       25.2          $       30.6
Bolzoni                                                     3.7                     2.1                   5.8                  10.4
Nuvera                                                      1.3                     2.4                   3.7                   3.3
                                               $           19.7          $         15.0          $       34.7          $       44.3


Planned spending for the remainder of 2022 is primarily for product development, improving information technology infrastructure, and improving manufacturing sites and manufacturing equipment. The primary sources of funding for these capital expenditures are expected to be internally generated funds and bank financing.

Capital structure

The capital structure of the Company is shown below:

                                        SEPTEMBER 30       DECEMBER 31
                                            2022               2021            Change
Cash and cash equivalents              $      68.6        $      65.5        $    3.1
Other net tangible assets                    519.5              728.7          (209.2)
Intangible assets                             43.1               50.7            (7.6)
Goodwill                                      49.0               56.5            (7.5)
Net assets                                   680.2              901.4          (221.2)
Total debt                                  (545.0)            (518.5)          (26.5)

Total temporary and permanent equity $135.2 $382.9

  $ (247.7)
Debt to total capitalization                    80  %              58  %           22  %



PERSPECTIVES AND OUTLOOK

Market Commentary

The global economic outlook remains constrained due to several factors,
including aggressive central bank actions designed to control inflation as well
as the effects of COVID lockdowns in China and the ongoing Russia/Ukraine
conflict. The latter, combined with forecasted oil production declines, have
driven energy prices higher and lowered economic activity, particularly in
Europe. The latest publicly available lift truck market data showed a 2022
second quarter global decline versus a robust 2021 second quarter period as
decreases in China and EMEA were partly offset by growth in the Americas.
Internal company estimates indicated a global lift truck market decline in the
third quarter of 2022 across all geographic regions, compared with both the
prior year quarter and 2022's second quarter.

Looking ahead, the global lift truck market is expected to decrease further in
the fourth quarter 2022 and full-year 2023 compared with the respective prior
year periods. However, global market unit volumes in 2023 are expected to remain
relatively strong and above pre-pandemic levels, despite an increasing
possibility of a global or regional recession.

After several years of extraordinary lift truck market growth that stretched
supplier capacity to, and in some cases beyond, its limits, a market slowdown
could allow the lift truck component supply base to meet the Company's
requirements more effectively.

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Operational Perspectives - Lift Truck Business

The ongoing market decline and the Company's focus on booking orders with a
strong margin profile resulted in a significant decrease in lift truck bookings
from robust prior-year levels and a sequential decline from the 2022 second
quarter. Looking forward, bookings levels are expected to decrease
year-over-year in the fourth quarter 2022 and full-year 2023 due to the market
outlook and the Company's continued focus on booking higher-margin orders. These
anticipated decreases combined with planned production levels should help the
Company bring its backlog to more competitive levels over the course of 2023.

Backlog levels have trended down modestly over the past two quarters as bookings
have declined, but lead times are still extended. Incoming order selectivity has
resulted in higher average prices and margins for both unit bookings and
backlog. As the Company moves through its backlog in the fourth quarter of 2022
and in 2023, lower-margin units, priced in prior years, will have been shipped
and the majority of 2023 shipments will be produced from the currently existing
higher-margin backlog. As a result, average unit margins are expected to
continue to improve. The Company believes that its current significant backlog
level, including expected built-in margin increases over time, and anticipated
continued selective bookings at higher margins will lead to improvements in
operating profit in 2023. In addition, the Company's extended backlog is
expected to help mitigate the strain on the business in a recessionary
environment.

The Company expects fourth-quarter 2022 production and shipment volumes to
increase over the third quarter 2022 as a result of gradually diminishing supply
chain bottlenecks and the substantial backlog level. Full-year 2023 production
and shipment volumes are expected to increase versus 2022 given the current
substantial backlog and as additional supply chain improvements are anticipated
to be achieved, further reducing lead times. New bookings, consistent with the
market outlook, are expected to have sound margins when those trucks are
produced in late 2023 and 2024, particularly in the context of more competitive
lead times as backlogs are reduced.

The Company continues to experience cost increases, particularly in EMEA, in
part due to higher energy costs as a result of the ongoing Russia/Ukraine
conflict. In contrast, Americas and JAPIC cost increases have slowed
significantly. Forward economic indicators suggest moderate cost inflation
trends in 2023, absent any additional effects from the Russia/Ukraine conflict
or COVID-related global supply chain constraints. Due to the substantial
inflationary pressure over the past 18 months, the Lift Truck business
implemented several price increases. Generally, these price increases are
expected to more than fully offset inflationary pressures in 2022 and 2023, and
are expected to provide higher margins for trucks which will be produced in
upcoming quarters.

As a result of the above factors, and the expected ongoing benefits from
cost-savings initiatives, the Lift Truck business expects to generate operating
profit in the 2022 fourth quarter. Further improvements are anticipated in 2023
as production volumes are expected to increase and margins are expected to rise
due to an improving price to cost ratio. The Company's strategic programs are
also expected to further enhance margins as they mature, including the further
expansion of its modular and scalable product families. Therefore, the Lift
Truck business expects to generate a substantial operating profit in 2023. These
assumptions, however, are highly sensitive to the effect of various market
forces, particularly those that impact global supply chains.

Strategic Insights – Forklift

From a broader perspective, the Lift Truck Business has three core strategies
that are expected to have a transformational impact on the Company's
competitiveness, market position and economic performance as it emerges from the
current period of mismatched costs and pricing: (1) provide the lowest cost of
ownership while enhancing customer productivity, with a primary focus on new
modular and scalable product projects and projects geared toward electrification
of trucks, automation product options and providing telemetry and operator
assist systems, (2) be the leader in the delivery of industry- and
customer-focused solutions, focused primarily on transforming the Company's
sales approach to be industry focused to meet customers' needs, and (3) be the
leader in independent distribution, focused on dealer and major account
coverage, dealer excellence and ensuring outstanding dealer ownership globally.
The Company continues to make progress on its high-priority projects. Notably,
early in the fourth quarter of 2022, the Company announced that its first
hydrogen fuel cell powered container handler, powered by Nuvera® fuel cell
engines, began its testing pilot in the Port of Los Angeles.

Operational and strategic outlook – Bolzoni

In the fourth quarter of 2022, Bolzoni expects to return to profitability based
on projected sales volume increases over the third quarter due to moderating
component shortages and improved manufacturing efficiencies. Benefits are also
expected from lower material cost inflation and ongoing strict cost controls.
Over the course of 2023, Bolzoni expects component shortages to continue to
moderate and increasing prices to help offset higher costs, resulting in
increased margins over time and higher operating profit in 2023 versus 2022.
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Contents

Bolzoni continues to focus on implementing its "One Company - 3 Brands" approach
and increasing its Americas business by strengthening its ability to serve key
attachment industries and customers in the North America market. Bolzoni is also
increasing its sales, marketing and product support capabilities both in North
America and Europe based on an industry-specific approach.

Operational and Strategic Outlook – Nuvera

Nuvera continues to focus on applying its strategy of placing 45kW and 60kW fuel
cell engines in niche, heavy-duty vehicle applications with expected significant
fuel cell adoption potential. Over the first nine months of 2022, Nuvera has
announced several projects with various third parties who are testing, or
planning to test, Nuvera® engines in heavy-duty applications, including the Port
of Los Angeles and European ports. Nuvera is also developing a new 125kW fuel
cell engine for heavier-duty applications.

During the fourth quarter of 2022 and in 2023, Nuvera expects continued focus on
ramping up demonstrations, quotes and bookings of these products. The Company
expects moderately reduced losses at Nuvera in the fourth quarter of 2022. In
2023, Nuvera expects higher sales with moderately higher costs, resulting in
comparable losses to 2022.

Consolidated Outlook

On a consolidated basis, the Company continues to project a modest operating
profit and income before tax in the fourth quarter of 2022. However, the Company
expects a modest net loss in the fourth quarter due to tax expense on profits in
areas where a valuation allowance is not currently provided. In future periods,
tax benefits currently offset by valuation allowances are expected to be
recognized.

The Company's ongoing efforts to build out its layers of lower-priced,
lower-margin backlog in the remainder of 2022 and early 2023 are expected to
lead to improving margins and a return to solid operating profit and net income
for the 2023 full year. These expectations are based on the Company's continuing
ability to manage component shortages at planned production levels and
reasonable stabilization of material and freight costs.

The Company is laser-focused on its cash flows, with detailed action plans to
improve future results. These actions include tightly managing capital
expenditures, operating expenses and production plans to maintain adequate
liquidity levels. Capital expenditures are expected to be approximately $35
million for full-year 2022. The Company expects to continue its disciplined
approach to cash outflows, including some delays in the timing of certain
strategic program investments. These capital expenditures and investments will
be made over time to support profitable growth. Working capital continues to be
an area of intense focus for the Company. Inventory levels remain above normal
levels due to production delays created by parts shortages. Reducing inventory
levels in the fourth quarter of 2022 and in the first half of 2023 by focusing
on the use of current inventory coupled with limited inventory purchases to
build trucks, remains a top priority. As a result of these cash conserving
actions, the Company expects solid cash flow before financing activities for the
full-year 2022 compared with a significant use of cash in 2021.

EFFECTS OF FOREIGN CURRENCY

The Company operates internationally and enters into transactions denominated in
foreign currencies. As a result, the Company is subject to the variability that
arises from exchange rate movements. The effects of foreign currency
fluctuations on revenues, operating profit and net income (loss) are addressed
in the previous discussions of operating results. See also Item 3, "Quantitative
and Qualitative Disclosures About Market Risk," in Part I of this Quarterly
Report on Form 10-Q.

FORWARD-LOOKING STATEMENTS

The statements contained in this Form 10-Q that are not historical facts are
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements are made subject to certain risks and uncertainties,
which could cause actual results to differ materially from those presented.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Among the factors that could
cause plans, actions and results to differ materially from current expectations
are, without limitation: (1) delays in delivery and other supply chain
disruptions, or increases in costs as a result of inflation or otherwise,
including materials and transportation costs and shortages, the imposition of
tariffs, or the
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renewal of tariff exclusions, on raw materials or sourced products, and labor,
or changes in or unavailability of quality suppliers or transporters, including
the impacts of the foregoing risks on the Company's liquidity, (2) delays in
manufacturing and delivery schedules, (3) customer acceptance of pricing, (4)
any preventive or protective actions taken by governmental authorities related
to the COVID-19 pandemic, and any unfavorable effects of the COVID-19 pandemic
on either the Company's or its suppliers plants' capabilities to produce and
ship products, (5) unfavorable effects of geopolitical and legislative
developments on global operations, including without limitation the entry into
new trade agreements and the imposition of tariffs and/or economic sanctions, as
well as armed conflicts, including the Russia/Ukraine conflict, and their
regional effects, (6) the ability of the Company and its dealers, suppliers and
end-users to access credit in the current economic environment, or obtain
financing at reasonable rates, or at all, as a result of interest rate
volatility and current economic and market conditions, including inflation, (7)
reduction in demand for lift trucks, attachments and related aftermarket parts
and service on a global basis, including any reduction in demand as a result of
an economic recession, (8) exchange rate fluctuations, interest rate volatility
and monetary policies and other changes in the regulatory climate in the
countries in which the Company operates and/or sells products, (9) impairment
charges or charges due to valuation allowances, (10) the effectiveness of the
cost reduction programs implemented globally, including the successful
implementation of procurement and sourcing initiatives, (11) the successful
commercialization of Nuvera's technology, (12) the political and economic
uncertainties in the countries where the Company does business, as well as the
effects of any withdrawals from such countries, (13) bankruptcy of or loss of
major dealers, retail customers or suppliers, (14) customer acceptance of,
changes in the costs of, or delays in the development of new products, (15)
introduction of new products by, more favorable product pricing offered by or
shorter lead times available through competitors, (16) product liability or
other litigation, warranty claims or returns of products, (17) changes mandated
by federal, state and other regulation, including tax, health, safety or
environmental legislation, and (18) the ability to attract, retain, and replace
workforce and administrative employees.

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