Hamilton Beach 2011 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 returns on equity
• Contracts are structured to minimize exposure to market
fluctuations of coal prices
• 2.3 billion tons of lignite coal reserves, of which
approximately 1.1 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
785,000 Hyster®and Yale®lift trucks in operation
worldwide
• Highly diverse customer base with more than 600 different
end-user applications in more than 700 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,
and an average operating profit
margin of 7 percent mid-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,
attain positive Economic
Value Income from all existing
consolidated mining operations
and any new projects, maintain
or increase the profitability of
all existing unconsolidated
mining operations and achieve
substantial income growth by
developing new mining ventures
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
• 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 2011, total revenues were
$3.3 billion and net income*was $162.1 million.