Hamilton Beach 2010 Annual Report Download - page 3

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
• 2.1 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 773,000 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 maintain-
ing 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 and processes 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 and traditional mall expansion
- Le Gourmet Chef® outlet mall focus
- 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
- Invest in deep understanding of consumer and customer needs
- Leverage engineering expertise worldwide to develop innovative
solutions that improve everyday living
• 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
NACCO Industries, Inc. is an operating holding company with subsidiaries in the following
principal industries: lift trucks, small appliances, speciality retail and mining. In 2010, total
revenues were $2.7 billion and net income*was $79.5 million.