Hamilton Beach 2012 Annual Report Download - page 7

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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®
Competitive Advantages Financial Objectives
HBB:
Achieve a minimum
operating profit margin
target of 10 percent
Kitchen Collection:
Achieve a minimum
operating profit margin
target of 5 percent
Key Initiatives
Kitchen Collection:
• Grow comparable store sales and create a solid store portfolio
• Enhance sales volume and profitability through refinement
of store formats and specific product offerings
• Improve inventory efficiency and store inventory controls
• Grow the number of Kitchen Collection®stores through
identification of the best positions in the best outlet malls
• Explore growth opportunities in textiles and gourmet foods,
as well as in e-commerce
HBB:
• Enhance placements in the North American consumer business
• Enhance internet sales by providing best-in-class retailer
support and increased consumer content and engagement
• Achieve further penetration of the global Commercial market
through an enhanced global product line
• Expand internationally in the emerging Asian and Latin
American markets
• Enter the “only-the-best” market with a strong brand and
broad product line
NACCO Industries, Inc. is an operating holding company with subsidiaries in the following
principal industries: mining, small appliances and specialty retail. In 2012, total revenues
were $873.4 million and net income was $108.7 million.
NACoal:
• Coal mines provide steady income and
cash flow before financing activities and
high returns on equity
• Steam coal contracts are structured to
minimize exposure to market fluctuations
of coal prices
• 2.2 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 respon-
sibility and employee safety
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 prof-
itability of all existing
unconsolidated mining
operations and achieve
substantial income
growth by developing
new mining ventures
NACoal:
• Actively pursue domestic opportunities for new coal
mining projects
• Develop a metallurgical coal business platform
• Actively pursue international opportunities for new
value-added mining services and exports
• Expand capabilities in the aggregates market
• Pursue a technologically enhanced fuel strategic platform