Hamilton Beach 2009 Annual Report Download - page 3

NACCO Industries, Inc. is an operating holding company with subsidiaries in the following principal
industries: lift trucks, small appliances, speciality retail and mining. In 2009, total revenues were
$2.3 billion and net income*was $31.1 million.
HBB:
•Strong heritage brands with leading market
shares
•Strong relationships with leading retailers
•Highly professional and experienced
management team
•Successful track record of product line
expansion and new product innovation
•Industry-leading working capital management
Kitchen Collection:
•Highly analytical merchandising skills and
disciplined operating controls
•Two well-established, complementary retail
store formats –Kitchen Collection®and
Le Gourmet Chef®
NACoal:
•Coal mines provide steady income and cash
flow before financing activities and high return
on equity
•Contracts are structured to minimize exposure
to market fluctuations of coal prices
•2.2 billion tons of lignite coal reserves, of
which approximately 1.2 billion tons are
committed to current customers
•Outstanding operational and technological
mining skills
•Highly efficient heavy equipment utilization
•Excellent record of environmental responsibility
and employee safety
Competitive Advantages
NMHG:
•Leading market share positions in the
Americas and worldwide
•Highly recognized Hyster®and Yale®brand
names
•Large installed population base of lift trucks;
an estimated 804,000 Hyster®and Yale®lift
trucks in operation worldwide
•Highly diverse customer base with more than
600 different end-user applications in more
than 600 industries
•Comprehensive global product line
•Strong dealer network
•Industry-leading national account coverage
in the Americas
•Globally integrated operations with significant
economies of scale
Financial Objectives
NMHG:
Achieve a minimum
operating profit margin
target of 9 percent at
the peak of the market
cycle
HBB:
Achieve a minimum
operating profit margin
target of 10 percent
Kitchen Collection:
Achieve a minimum
operating profit margin
target of 5 percent
NACoal:
Earn a minimum return
on capital employed of
13 percent and attain
positive Economic
Value Income from all
existing consolidated
mining operations
and any new projects,
while maintaining
or increasing the
profitability of all
existing unconsolidated
mining operations
Key Strategies
NMHG:
• Innovation in our products and services
- Lowest cost of ownership
- Application-focused solutions
• Quality and efficiency
- Improve operational effectiveness while delivering
high-quality products
- Continually reduce manufacturing and supply chain costs
- Manufacturing in market of sale
• Sales and service excellence
- Independent dealer networks with dual brand representation
if dealerships meet criteria
- Strong national account direct sales group to support large,
geographically dispersed customers
• Global coverage with local tailoring of products, services,
processes and systems
• Organizational excellence
- People development
NACoal:
• Mining and reclamation expertise
- Innovative and low cost
- Equipment maintenance
- Efficient processes and systems
• Safety focus
• Long-term partnerships with current and future customers
• Pursue new business opportunities
- Domestic and international
- Coal and value-added mining services
• Organizational excellence
- People development
- Highly disciplined mine management teams
Kitchen Collection:
• Unique, high-quality, widest variety of affordable products
in creative store environments
• Store improvement and expansion
- Kitchen Collection®outlet mall expansion
- Le Gourmet Chef®outlet and traditional mall expansion
- Internet channel expansion
• Cost control
- Continually reduce store and warehousing costs
- Control capital costs
• Partnerships with our suppliers
• Organizational excellence
- People and processes development
HBB:
• Innovation in our products
• Sales and marketing excellence
- Professional and efficient sales and marketing teams,
processes and systems
- Building brand equity of our current brands and
increasing the number of brands
• Quality and efficiency
- Ensure operational excellence while delivering
high-quality products
- Continually reduce supply chain costs
• Partnerships with our customers and suppliers
• Organizational excellence
- People and processes development