NACCO Industries, Inc. Annual Report 2014

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FY2014 Annual Report · NACCO Industries, Inc.

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NACCO Industries, Inc.
2014 Annual Report
Strategic Update

NACCO Industries, Inc. at a Glance

Principal Businesses

2014
Financial Results

Market Positions

MINING

North American Coal (“NACoal”)
Headquarters: Dallas, Texas
North American Coal mines and markets
steam and metallurgical coal for use in power
generation and steel production and provides
selected value-added mining services for other
natural resources companies. North American
Coal operates eight surface coal mining
operations and has two additional coal mines
under development.

The company also provides dragline mining
services operating under the name “North
American Mining Company” for independently
owned limerock quarries in Florida.

Hamilton Beach Brands (“HBB”)
Headquarters: Richmond, Virginia
HBB is a leading designer, marketer and
distributor of small electric household and
specialty housewares appliances, as well as
commercial products for restaurants, bars
and hotels.

HBB has a broad portfolio of some of the
most recognized and respected brands in
the small electric appliance industry, including
Hamilton Beach®, Proctor Silex®, Hamilton
Beach® Commercial and Weston®. HBB also
sells products under licensed brands such as
Jamba® and Wolf Gourmet®.

Kitchen Collection
Headquarters: Chillicothe, Ohio
Kitchen Collection is a national specialty
retailer of kitchenware in outlet and traditional
malls throughout the United States.

NACoal:
North American Coal is
among the ten largest
coal producers in the
United States.

Coal is delivered from
developed mines in North
Dakota, Texas, Mississippi,
Louisiana and Alabama,
primarily to adjacent or
nearby power plants.

HBB:
HBB is a leading company
in retail and commercial
small appliances, with
strong share positions in
many of the categories
in which it competes.

HBB products are prima-
rily distributed through
mass merchants, national
department stores,
wholesale distributors
and other retail sales
outlets.

Kitchen Collection:
Kitchen Collection is
the nation’s leading
specialty retailer of
kitchen and related
products in factory
outlet malls with 248
stores throughout
the United States at
December 31, 2014.

NACoal:
Revenues:

$172.7 million
Operating loss:
$89.0 million

Net loss:

$51.0 million
Adjusted income:(1)
$15.5 million

Equity:

$103.1 million
Return on Equity:(1)

(36.5%)

Return on Capital
Employed:(1)
(15.0%)

HBB:
Revenues:

$559.7 million
Operating profit:
$35.8 million

Net income:

$23.1 million

Equity:

$49.6 million
Return on Equity:(1)

43.2%

Return on Capital
Employed:(1)
28.7%

Kitchen Collection:
Revenues:

$168.5 million
Operating loss:
$7.1 million

Net loss:

$4.6 million

Equity:

$32.2 million
Return on Equity:(1)

(14.3%)

Return on Capital
Employed:(1)
(11.4%)

(1) This Annual Report contains references to non-GAAP financial measures. Presentations of, and quantitative reconciliations to, the most directly comparable financial

measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”) appear on page 14.

* Jamba® is a registered trademark of the Jamba Juice Company.
** Wolf Gourmet® is a registered trademark of the Sub-Zero Group, Inc.

NACCO Industries, Inc. is an operating holding company with subsidiaries in the following principal
industries: mining, small appliances and specialty retail.

Competitive Advantages

Financial Objectives

Strategic Initiatives

NACoal:
• Actively pursue domestic opportunities for new

coal mining projects

• Expand capabilities in the non-coal mining market

NACoal:
• Coal mines provide steady income and
cash flow before financing activities
• Steam coal contracts are structured to
minimize exposure to market fluctua-
tions of coal prices

• 2.0 billion tons of lignite coal reserves,
of which approximately 1.1 billion tons
are committed to current customers
• Outstanding operational and techno-

logical mining skills

• Highly efficient heavy equipment

utilization

• Excellent record of environmental
responsibility and employee safety

NACoal:
Earn a minimum return
on capital employed of
13 percent, attain positive
Economic Value Income
from all existing consoli-
dated mining operations
and any new projects,
maintain or increase the
profitability of all existing
unconsolidated mining
operations and achieve
substantial income growth
from development of new
mining ventures

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

HBB:
Achieve $750 million in
sales and a minimum
operating profit margin
target of 10 percent

HBB:
• Enhance placements in the North American consumer

business

• Achieve a leadership position in internet sales by

providing best-in-class retailer support and increased
consumer content and engagement

• Enter the “only-the-best” market with strong brands

and broad product line

• Expand internationally in emerging Asian and Latin

American markets

• Achieve further penetration of the global Commercial

market through an enhanced global product line

Kitchen Collection:
• Highly analytical merchandising skills

and disciplined operating controls
• A leading Kitchen Collection® store

format in outlet malls

Kitchen Collection:
Achieve a minimum
operating profit margin
target of 5 percent

Kitchen Collection:
• Create a solid core store portfolio and increase

comparable store sales
– Enhance sales volume and profitability through

refinement of store formats and specific product
offerings

– Improve inventory efficiency and store inventory

controls

– Selectively increase the number of Kitchen
Collection® stores in strong outlet malls in
well-positioned locations

Selected Financial and Operating Data
NACCO Industries, Inc. and Subsidiaries

Year Ended December 31
2014(1) 2013 2012(2) 2011(2)(3) 2010(2)(3)
(In millions, except per share data)

Operating Statement Data :
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating profit (loss) . . . . . . . . . . . . . . . . . . . . . . . .

$ 896.8
$ (66.3)

$ 932.7
$ 61.3

Income (loss) from continuing operations . . . . . . .
Discontinued operations, net-of-tax(2). . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (38.1)
–
$ (38.1)

$ 44.5
–
$ 44.5

$ 873.4
$ 67.6

$ 42.2
66.5
$ 108.7

$ 790.5
$ 64.1

$ 79.5
82.6
$ 162.1

$ 885.6
$ 94.2

$ 47.1
32.4
$ 79.5

Basic Earnings (Loss) per Share:
Income (loss) from continuing operations . . . . . . .
Discontinued operations, net-of-tax(2) . . . . . . . . . . .
Basic earnings (loss) per share . . . . . . . . . . . . . . . . .

Diluted Earnings (Loss) per Share:
Income (loss) from continuing operations . . . . . . .
Discontinued operations, net-of-tax(2) . . . . . . . . . . .
Diluted earnings (loss) per share . . . . . . . . . . . . . . .

$ (5.02)
–
$ (5.02)

$ 5.48
–
$ 5.48

$ 5.04
7.93
$ 12.97

$ 9.49
9.85
$ 19.34

$ 5.66
3.89
$ 9.55

$ (5.02)
–
$ (5.02)

$ 5.47
–
$ 5.47

$ 5.02
7.90
$ 12.92

$ 9.46
9.82
$ 19.28

$ 5.65
3.88
$ 9.53

Per Share and Share Data:
Cash dividends(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Market value at December 31. . . . . . . . . . . . . . . . . .
Stockholders’ equity at December 31 . . . . . . . . . . .

$ 1.023
$ 59.36
$ 29.23

Actual shares outstanding at December 31 . . . . . .
Basic weighted average shares outstanding . . . . .
Diluted weighted average shares outstanding . . .

7.236
7.590
7.590

Balance Sheet Data at December 31:
Cash(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 61.1
$ 770.5
$ 191.4
$ 211.5

$ 1.000
$ 62.19
$ 37.83

7.872
8.105
8.124

$ 95.4
$ 810.0
$ 152.4
$ 297.8

$ 5.378
$ 60.69
$ 33.68

8.353
8.384
8.414

$ 139.9
$ 776.3
$ 135.4
$ 281.3

$ 2.120
$ 89.22
$ 68.81

8.374
8.383
8.408

$ 153.8
$ 1,808.8
$ 74.5
$ 576.2

$ 2.085
$ 108.37
$ 53.69

8.333
8.328
8.344

$ 92.4
$ 1,670.9
$ 139.8
$ 447.4

(1) During the fourth quarter of 2014, NACoal determined that indicators of impairment existed at its Reed Minerals mining operations and as a result reviewed
the Reed Minerals’ long-lived assets for impairment. NACoal recorded a non-cash, asset impairment charge of $105.1 million for the Reed Minerals’ long-lived
asset group.

(2) During 2012, NACCO spun off Hyster-Yale, a former subsidiary. The results of operations of Hyster-Yale for all periods shown have been reclassified to reflect

Hyster-Yale’s operating results as discontinued operations.

(3) In 2006, NACCO initiated litigation in the Delaware Chancery Court against Applica Incorporated (“Applica”) and individuals and entities affiliated with Applica’s

shareholder, Harbinger Capital Partners Master Fund, Ltd. The litigation alleged a number of contract and tort claims against the defendants related to the failed
transaction with Applica, which had been previously announced. On February 14, 2011, the parties to this litigation entered into a settlement agreement. The
settlement agreement provided for, among other things, the payment of $60 million to NACCO and dismissal of the lawsuit with prejudice. The payment was
received in February 2011. Litigation costs related to this matter were $2.8 million and $18.8 million in 2011 and 2010, respectively.

(4) Cash dividends in 2012 include a one-time special cash dividend of $3.50 per share. The $0.25 dividend paid in the fourth quarter of 2012 was the first regular

quarterly dividend following the spin-off of Hyster-Yale.

This Annual Report contains references to non-GAAP financial measures. Presentations of, and quantitative reconciliations to, the most directly comparable
financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”) appear on page 3 and page 14. For
certain pre-tax disclosures included in the “Discussion of 2014 Results” on page 4, the resulting after-tax amount and the related income tax amount have
been included and reconciled on page 14. Certain after-tax amounts are considered non-GAAP measures in accordance with Regulation G. Management
believes that after-tax information is useful in analyzing the Company’s net income.

Year Ended December 31
2014(1) 2013 2012(2) 2011(2)(3) 2010(2)(3)
(In millions, except employee data)
Cash Flow Data:
Operating Activities
North American Coal Corporation . . . . . . . . . . . .
Hamilton Beach Brands . . . . . . . . . . . . . . . . . . . . .
Kitchen Collection . . . . . . . . . . . . . . . . . . . . . . . . . .
NACCO and Other . . . . . . . . . . . . . . . . . . . . . . . . . .
Provided by operating activities
from continuing operations . . . . . . . . . . . . . . . . . .

$ (6.1)
18.6
7.1
0.2

$ 29.5
40.8
(10.1)
(7.1)

$ 50.2
27.4
3.8
(7.1)

$ 31.7
24.2
4.9
39.8

$ 25.9
15.0
6.3
(31.6)

$ 100.6

$ 74.3

$ 53.1

$ 15.6

$ 19.8

Investing Activities
North American Coal Corporation . . . . . . . . . . . .
Hamilton Beach Brands . . . . . . . . . . . . . . . . . . . . .
Kitchen Collection . . . . . . . . . . . . . . . . . . . . . . . . . .
NACCO and Other . . . . . . . . . . . . . . . . . . . . . . . . . .
Used for investing activities
from continuing operations . . . . . . . . . . . . . . . . . .

Cash Flow before Financing Activities(5)
North American Coal Corporation . . . . . . . . . . . .
Hamilton Beach Brands . . . . . . . . . . . . . . . . . . . . .
Kitchen Collection . . . . . . . . . . . . . . . . . . . . . . . . . .
NACCO and Other . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Cash Flow before Financing Activities
from continuing operations(5) . . . . . . . . . . . . . . . . . .

Provided by (used for) financing activities
from continuing operations . . . . . . . . . . . . . . . . . .

Other Data:
Adjusted EBITDA(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total employees at December 31(7) . . . . . . . . . . . . .

$ (44.1)
(29.5)
(0.8)
(0.5)

$ (56.2)
(2.3)
(2.1)
(0.1)

$ (56.3)
(3.2)
(3.9)
(0.4)

$ (10.7)
(3.7)
(2.3)
(0.1)

$ 6.9
(2.2)
(2.7)
0.7

$ (74.9)

$ (60.7)

$ (63.8)

$ (16.8)

$ (2.7)

$ (50.2)
(10.9)
6.3
(0.3)

$ (26.7)
38.5
(12.2)
(7.2)

$ (6.1)
24.2
(0.1)
(7.5)

$ 21.0
20.5
2.6
39.7

$ 32.8
12.8
3.6
(30.9)

$ (55.1)

$ (7.6)

$ 10.5

$ 83.8

$ 18.3

$ 21.0

$ (36.8)

$ (24.5)

$ (22.4)

$ (18.9)

$ 63.4

$ 88.8

$ 81.9

$ 80.0

$ 110.3

4,000

4,100

4,300

4,000

3,900

(5) Cash Flow before Financing Activities is equal to net cash provided by operating activities less net cash used for investing activities.
(6) Adjusted EBITDA is provided solely as a supplemental disclosure with respect to operating results. Adjusted EBITDA does not represent net income, as
defined by U.S. GAAP and should not be considered as a substitute for net income or net loss, or as an indicator of our operating performance. NACCO
defines Adjusted EBITDA as income before discontinued operations, Applica settlement and litigation charges, long-lived asset and goodwill impairment
charges and income taxes plus net interest expense and depreciation, depletion and amortization expense. Adjusted EBITDA is not a measurement
under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies.

(7) Includes employees of Weston Brands starting in 2014, Reed Minerals starting in 2012 and the unconsolidated mines for all years presented. Excludes

employees of Hyster-Yale for all years presented.

Year Ended December 31
2014(1) 2013 2012(2) 2011(2)(3) 2010(2)(3)
(In millions)
Calculation of Adjusted EBITDA(6)
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discontinued operations, net of tax . . . . . . . . . . . . .
Applica settlement and litigation costs . . . . . . . . . .
Reed Minerals long-lived asset
impairment charge . . . . . . . . . . . . . . . . . . . . . . . . .
Reed Minerals goodwill impairment charge . . . . . .
Income tax provision (benefit) . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation, depletion and amortization
expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted EBITDA(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

105.1
—
(38.5)
7.6
(0.8)

—
4.0
11.3
4.8
(0.3)

—
—
15.8
6.1
(0.2)

—
—
32.8
8.8
(0.3)

—
—
15.6
10.8
(0.3)

$ 162.1
(82.6)
(57.1)

$ (38.1)
—
—

$ 44.5
—
—

$ 108.7
(66.5)
—

$ 79.5
(32.4)
18.8

16.3
$ 80.0

24.5
$ 88.8

18.3
$ 110.3

18.0
$ 81.9

28.1
$ 63.4

Discussion of 2014 Results

NACCO Industries, Inc. and its subsidiaries operate in the mining, small appliances and specialty retail
industries – all industries that experienced their own set of diﬃculties in 2014. While the overall economy improved
during 2014, the middle-market mass consumer, the target consumer for the Company’s Hamilton Beach Brands
(“HBB”) and Kitchen Collection businesses, continued to struggle with ﬁnancial and economic concerns, leading
to weak retail market conditions for small appliances and other kitchen products. In addition, customer visits
to stores, particularly at traditional and outlet malls, continued to decline. North American Coal (“NACoal”)
performed as expected in 2014 with the exception of the Reed Minerals operations, where decreased demand
and depressed coal prices, particularly in the metallurgical coal market, caused signiﬁcant losses. Given these
conditions, 2014 was a challenging year. Consolidated revenues decreased to $896.8 million in 2014 from $932.7
million in 2013 primarily due to reduced sales at Kitchen Collection from closing underperforming stores and
fewer customer visits at comparable stores, and lower royalty income and reduced deliveries at NACoal. However,
HBB’s revenues increased slightly as a result of an increase in sales of new products with higher price points.

The Company faces a very diﬃcult situation with its Reed Minerals operation. When this business was
acquired in 2012, NACoal believed the metallurgical coal market was at a relative low point. However, that has
not proven to be the case as demand for metallurgical coal has fallen signiﬁcantly and the price of metallurgical
coal has deteriorated far beyond the Company’s expectations. Since the acquisition in 2012, NACoal has made
signiﬁcant investments to improve productivity and reduce operating costs at Reed Minerals.

In January 2015, Reed Minerals’ largest thermal coal customer clariﬁed the plan it will adopt to comply with

the U.S. Environmental Protection Agency’s new Mercury and Air Toxics Standards (“MATS”) beginning in the
fourth quarter of 2015. This plan includes more stringent coal quality requirements than previously anticipated
and is expected to contribute to an overall increase in coal processing costs at Reed Minerals beginning in late
2015 without an increase in selling price. Revisions made early in 2015 to the Reed Minerals’ 2015 operating
plan and long-range outlook reﬂected this new information about MATS compliance, decreased demand and
depressed coal prices and the lack of any reliable indicators of a recovery in coal demand or price. As a result of
these factors, NACoal recorded a non-cash impairment charge of $105.1 million, or $66.4 million after tax, for 2014
related to the long-lived assets of its Reed Minerals mining operations. In 2013, NACoal determined that the $4.0
million, or $2.6 million after tax, of goodwill related to the 2012 acquisition of Reed Minerals was fully impaired.
Including these impairment charges, NACoal’s net loss was $51.0 million in 2014 compared with net income
of $31.9 million in 2013, while NACCO incurred a consolidated net loss of $38.1 million, or $5.02 per diluted share,
in 2014, compared with net income of $44.5 million, or $5.47 per diluted share, in 2013.

Excluding these impairments, NACoal reported adjusted income of $15.5 million in 2014 compared with
adjusted income of $34.5 million in 2013. “Adjusted income or loss” refers to net income or net loss results
that exclude long-lived asset and goodwill impairment charges. (For reconciliations from GAAP results to the
adjusted non-GAAP results, see page 14.) Improved results at the unconsolidated mining operations were
oﬀset by a reduction in proﬁtability at the consolidated mines and a signiﬁcant reduction in royalty and other
income in 2014. Adjusted income for 2014 was negatively aﬀected by the consolidated mines due to increased
operating costs at Reed Minerals and a reduction in lignite tons sold at Mississippi Lignite Mining Company as
a result of an increase in planned and unplanned outage days at the customer’s power plant during the year.

While HBB’s revenues and gross proﬁt improved during 2014 from increased sales of new products with
higher price points and higher margins, net income declined to $23.1 million in 2014 from $25.1 million in 2013 as
selling, general and administrative expenses increased and foreign currency movements negatively aﬀected results.
Finally, Kitchen Collection made signiﬁcant improvements in its operations during 2014. Although revenues
decreased substantially from the closure of unproﬁtable stores, a reduction in operating expenses and a shift in
sales mix to higher-margin products helped Kitchen Collection achieve a lower net loss of $4.6 million in 2014
compared with a net loss of $6.9 million in 2013.

Consolidated adjusted income for the year ended December 31, 2014 was $28.3 million, or $3.72 per diluted

share, compared with adjusted income in 2013 of $47.0 million, or $5.79 per diluted share.

Additional discussion of these results, the Reed Minerals long-lived asset impairment and the 2015 outlook
for each of the Company’s businesses can be found starting on page 15 of this Annual Report on Form 10-K
or is available on the Company’s website.

Coal Lake and the surrounding grasslands, a pristine wildlife habitat area benefiting farmers, ranchers and hunters, was donated by North American Coal
and The Falkirk Mining Company’s customer as part of an environmental project to donate certain reclaimed land to the North Dakota Department of
Transportation. Coal Lake was formed from one of the mining pits at the Falkirk Mine, which can be seen mining a new area in the distance.

To Our Stockholders

Introduction

NACCO Industries, Inc., headquartered in

selected value-added mining services for other

Cleveland, Ohio, is an operating holding company

natural resources companies.

with a long-term objective of increasing stock-

Hamilton Beach Brands, Inc., headquartered

holder wealth, with a particular focus on taxable

in Richmond, Virginia, is a leading designer,

investors. The business of NACCO Industries

marketer and distributor of small electric

is conducted through three separate and

household and specialty housewares appliances,

independently managed subsidiaries, with a

as well as commercial products for restaurants,

small core of people performing public company

bars and hotels.

activities at the corporate headquarters.

The Kitchen Collection, LLC, headquartered

The North American Coal Corporation,

in Chillicothe, Ohio, is a national specialty retailer

headquartered in Dallas, Texas, mines and markets

steam and metallurgical coal for use in power

generation and steel production and provides

of kitchenware operating under the Kitchen
Collection® store name in outlet and traditional
malls throughout the United States.

North American Coal
Unconsolidated Mines

more traditional business model, where NACoal

provides the capital for the mine and sells coal

North American Coal (“NACoal”) employs a

produced to customers. These mines are referred

different business model than most other coal

to as the “consolidated mines” because they are

industry participants. A large majority of NACoal’s

consolidated in the Company’s financial state-

mines operate under contracts to supply coal to

ments. At Mississippi Lignite Mining Company

an individual customer’s power plant for a long

(“MLMC”), coal is delivered to a single power plant

period of time, often for decades. The mines

which is adjacent to the mine. MLMC’s coal

and the customer facilities are in close proximity,

prices are fixed, but they escalate pursuant

often adjacent to one another. These contracts

to established indices over time and are not

include “cost-plus” pricing terms under which

subject to spot coal market fluctuations. MLMC’s

NACoal’s compensation includes all operating

contract expires in 2032.

costs, plus a comparatively small but consistent

The Centennial Natural Resources coal

amount of agreed profit on tons or heating

mining business in Alabama, formerly known as

units (btu) delivered. All but two of NACoal’s coal

Reed Minerals until the beginning of 2015, was

mining operations operate pursuant to cost-plus

acquired in August 2012 as the foundation of

contracts. This contractual approach also applies

what was expected to become a metallurgical

to NACoal’s value-added service operations, such

coal platform for NACoal. Key to this acquisition

as its Florida dragline mining operations, where

was an existing multi-year contract to sell a

NACoal personnel operate and maintain draglines

majority of the coal produced as steam coal for

for extraction of limerock at customer-owned

use by a significant U.S.-based public utility.

limerock mines.

NACoal viewed this contract as providing stability

While the pre-tax profits generated from

against the recognized volatility in the market for

these mines are included in NACoal’s income

metallurgical coal, which accounted for the balance

statement, these mines, which are referred to as

of Centennial’s coal production. Centennial is

the “unconsolidated mines,” are not consolidated

the only part of NACoal’s business that has any

in the Company’s financial statements. Financing

exposure to fluctuations in spot coal prices.

for these mines is supported by, or in some

When this business was acquired in 2012, the

instances, actually provided by customers to

Company believed the metallurgical coal market

minimize costs. NACoal and its customers believe

was at a relative low point. Market analysis at the

strongly that these long-term contracts fully align

time of the acquisition indicated that the metal-

the long-term interests of the mine and the

lurgical coal market was close to bottom and

customer facility in a way that assures low costs

suggested that improvements in both price and

for the customer over the long term. NACoal’s

demand were on the horizon. That analysis was

analysis of historical data supports that conclusion.

proven to be incorrect as global demand for

Consolidated Mines

metallurgical coal has fallen significantly, including

in important export markets such as China, and

Two of NACoal’s coal mines, one in Mississippi

the price for metallurgical coal has deteriorated

and one in Alabama, operate pursuant to a

far beyond what NACoal expected. Customer

for the fourth quarter of 2014. This non-cash

accounting charge does not impact the Company’s

cash flow from operations.

NACoal faces a very difficult situation with the

Centennial operation. Until markets improve, the

Centennial business will be managed based on

cash generation. The management team is right-

sizing operations in line with conservative volume

estimates, altering mining plans, investigating

less costly coal processing methods, managing

production volumes to optimize cash flow,

evaluating capital employed and considering sales

of non-core assets if appropriate. The Company

believes that efforts to manage the business

around conservative volume expectations and

manage for cash will help position this business

to take advantage of any rebound in the coal

market that may occur over time.

Safety and Environmental Excellence
NACoal consistently ranks among the

safest and most environmentally responsible

coal mining companies in the country. In 2014,

the Mine Safety and Health Administration

A new dragline and surface miner
were put into service in 2014 at North
American Coal’s newest mine, Caddo Creek
Resources Company, which commenced
delivering coal in late 2014.

demand and pricing for all types of coal in the

(MSHA) listed NACoal as the safest large coal

Alabama market have declined and remain weak.

mining company in the country. Safety is at the

Clearly this result is very disappointing to us and

very core of NACoal’s culture, embedded deeply

to our stockholders. In addition, we now believe

in employee training programs, operating

regulatory changes on the immediate horizon,

procedures and best practices shared among

including the Environmental Protection Agency’s

all of NACoal’s operations.

costly and controversial Mercury and Air Toxics

NACoal’s permitting, mining and reclamation

Standards regulation, which requires significant

activities utilize state-of-the-art technology and a

reductions in mercury emissions from power

commitment to excellence to ensure that activities

plants, will increase Centennial’s operating costs

comply with, or exceed, legal requirements. Work

without corresponding increases in coal selling

on the mine site is performed with the greatest

prices. These pricing, demand and regulatory

degree of care to ensure that land is returned to

pressures led to recognition of a very substantial

a productive natural state. Frequently, NACoal

non-cash impairment charge related to the

employees and their families are farmers, ranchers

Centennial mining operations’ long-lived assets

and outdoorsmen who live near mining areas.

They care deeply about the land, water and

to 2012, the outlook at Centennial is poor at this

wildlife where they live and are excellent stewards.

time due to low coal prices, low demand and

As representative evidence of this corporate

the aforementioned regulatory challenges. We

and individual commitment to the environment,

currently are not prepared to forecast significant

MLMC received one of only three 2014 Excellence

GAAP earnings at Centennial, and will not until

in Surface Coal Mining Reclamation Awards from

these price and demand conditions improve.

the U.S. Department of the Interior’s Office of

NACoal expects to continue its record of

Surface Mining and Reclamation.

operational excellence in safety, environmental

stewardship and production at each of its mining

Strategic Initiatives and Long-Term View

operations and, over time, to deliver profitability

NACoal’s unconsolidated operations, which

that exceeds its financial objectives, with the

constitute a large majority of its earnings and

exception of the Centennial operations.

cash flow capabilities, provide a strong core to

Given the current unsupportive regulatory

NACoal’s business model. NACoal has been very

environment for developing new traditional

fortunate to enter into six new agreements over

coal-fired power plants, and based on lessons

the last several years to develop new mines

learned at Centennial, NACoal is taking a very

or provide services to customers. Generally,

disciplined approach with respect to growth.

the power plants served by NACoal are among

Opportunities may exist, although limited, to

the lower-cost producers of electricity on their

provide coal to customers for use other than as

respective grids. NACoal expects to continue to

a power-generation fuel, or to serve as a cost-plus

be a low-cost miner of coal at existing mines and

contract miner for non-coal operations, such as

its mines in development, in support of customer

aggregates or other minerals. Also, strategic

needs. Over the longer term, NACoal’s goal is to

growth could possibly come from projects based

increase earnings of its unconsolidated operations

on new technologies that utilize coal, such as

by approximately 50 percent by 2017 over 2012

integrated gasification combined-cycle power

results through the development and maturation

generation, and production of alternative

of its new mines in development and normal

fuels made from coal, as well as other clean

escalation of contractual compensation at its

coal technologies and non-traditional products

existing unconsolidated mines. NACoal continues

derived from coal. NACoal is working with a

to anticipate it will achieve this goal.

range of technical experts and potential partners

NACoal also has had a goal of at least doubling

who could help develop projects based on these

the earnings contribution of its consolidated

advanced technologies. However, any significant

mining operations by 2017 from 2012 levels due

growth in domestic opportunities is largely

to benefits from anticipated continued operational

dependent on the United States adopting a

improvements at MLMC’s customer’s power plant

more balanced energy policy in which coal

and from the company’s execution of its long-term

continues to play a key role, including through

plan at the Centennial operations. While NACoal

new coal technologies.

continues to expect meaningful improvements

NACoal believes that a large majority of

of financial results at the MLMC mine compared

consumers in the United States will benefit

from a domestic energy policy that balances

Overall, NACoal’s focus on safety and

affordability, energy needs and environmental

environmental compliance and its unusual but

responsibility. The company believes that, for the

attractive business model, based largely on long-

foreseeable future, coal must remain an integral

term cost reimbursable contracts, provide a solid

part of the nation’s total energy mix for the

foundation for all of the company’s coal and

United States to continue to be competitive in a

limerock mining operations, as well as stable

global economy. NACoal will continue to monitor

cash flow before financing activities with minimal

pending regulations and legislation and will take

capital investment, other than at MLMC, which

a leadership role to help encourage reasonable

will continue to require ongoing replacement

regulation by the government. Importantly,

capital. NACoal will continue to pursue growth

NACoal expects to address currently anticipated

over the next few years mainly as the company’s

changes to domestic environmental regulatory

new mines currently in development reach full

requirements by working collaboratively with its

production and by reaching its five-year targets

customers, trade associations, representatives

for its consolidated and unconsolidated mines,

of regulatory bodies, and government officials.

other than Centennial.

Hamilton Beach Brands
Overview

Hamilton Beach Brands’ (“HBB”) vision is to

be a leading designer, marketer and distributor

of small electric household, specialty housewares

and commercial appliances sold worldwide under

strong brand names and to achieve profitable

growth from innovative solutions that improve

everyday living.

HBB develops and invests in several core

competencies that are critical to achieving that

vision. Most importantly HBB has a culture based

on a foundation of Good Thinking™. Whether

developing innovation to address consumers’

unmet needs, solving a challenge in the supply

chain or partnering with a retail customer, HBB’s

Good Thinking™ culture provides a competitive

advantage. The only way to achieve that culture

is by hiring and retaining talented and dedicated

employees globally. In addition, HBB believes it

is best in class at sourcing and logistics as well as

support systems to meet the needs of retail and

commercial customers. HBB pursues market and

Hamilton Beach Brands’ new Wolf Gourmet®
Blender, just one appliance in a line of luxury
countertop appliances created through a
licensing agreement with Sub-Zero Group, Inc.
to enter the “only-the-best” market segment.

product development expertise to help ensure

products delight consumers across the most

desirable market opportunities. Finally, HBB

maintains and invests in a strong brand portfolio

to increase customer and consumer confidence

that HBB’s family of products is right for them.

Strategic Initiatives and Long-Term View

HBB’s vision includes delivering growth above

historic rates to reach sales of approximately

$750 million over the next four to five years. As

the company moves toward this target sales level,

HBB expects to take advantage of increasing

economies of scale to improve return on sales

by focusing on its five key strategic initiatives.

First, HBB is focused on enhancing place-

ments in the North American consumer business

through consumer-driven innovative products

and strong sales and marketing support. The

company’s product and placement track record is

strong due to innovation processes centered on

understanding and meeting end-user needs and

focusing on quality and best-in-class customer

service. In the North American consumer market,

HBB believes it has a stronger and deeper portfolio

of new products than its competitors. HBB expects

its product pipeline in 2015 and beyond to be at

or above 2014 levels, leveraging strong brands

and best-in-class products.

Products available from Hamilton Beach Brands’
new acquisition Weston Brands, include,
clockwise from top: Weston® Fruit & Wine Press,
Weston® Pro Series Meat Grinder,
Weston® Professional Advantage Vacuum Sealer,
Weston® Electric Pasta Machine and
Weston® Cabbage Shredder

In pursuit of growing placements, HBB

Table segment has grown almost 10 percent over

acquired the Weston Products business (now

the past decade. In the Farm-to-Table segment,

called Weston Brands) near the end of 2014.

about one-third of the U.S. population participates

Weston Brands markets and distributes appliances
and accessories under the proprietary Weston®
brand and private label brands for consumers who

in gardening or home harvesting. As interest in

home harvesting, farmers’ markets and more

wholesome food choices continues to expand, this

are hunters, gardeners and food enthusiasts who

acquisition is expected to deliver growth at a rate

have a passion for Farm-to-Table and Field-to-Table

at or above HBB’s core kitchen appliance business.

foods, and for knowing the origin of their food.

A second area of growth opportunity is

The U.S. population participating in the Field-to-

through the enhancement of online sales and

communications. In the past few years, online

growth markets of Asia and Latin America by

sales of small kitchen appliances have grown

increasing product offerings designed specifically

significantly. During 2014, approximately 17 percent

for those market needs and by expanding

of small kitchen appliances were purchased

distribution channels and sales and marketing

online. Retailers are looking for partners that

capabilities. HBB’s historical strength has been

can provide not only products, but also the

in the North American consumer goods market,

capabilities and support for promotion, marketing

with approximately 20 percent of its total sales

and distribution programs appropriate for that

occurring outside the United States in 2014. HBB’s

channel. As consumers’ shopping habits evolve

objective is to increase international sales to 35 to

to rely more on the Internet, HBB is focused on

45 percent of total sales by concentrating on key

providing best-in-class retailer support, increasing

markets. HBB’s efforts will focus on continuing to

engagement with end users, including maintaining

expand its positions in Mexico, Canada, Central

a website that is appropriate for mobile devices,

America and South America, as well as in the

and enhancing its programs designed to make

emerging markets of China, India and Brazil. To

HBB the preferred source for small appliances.

achieve this growth, HBB is working to enhance

Third, in 2014 HBB announced its entry

its understanding of local consumers’ needs,

into the “only-the-best” high-end small kitchen

increasing sales and marketing resources allocated

appliance market segment through multi-year

to these markets and developing products to

licensing agreements with the Sub-Zero Group,

meet those needs, especially in the mid- to high-

Inc. and the Jamba Juice Company. HBB and

end segments of these markets. HBB began

Sub–Zero Group will be launching a full line of
Wolf Gourmet® branded small kitchen appliances
and cooking tools in 2015 for sale in high-end

selling retail products in China in 2013, and in

Brazil and India in 2014. HBB expects to increase

sales in these areas in 2015.

retail channels, in Sub-Zero and Wolf showrooms

Fifth, while HBB has a solid position in

and on the Internet. This “only-the-best” segment

the commercial market, it continues to focus

is a strong growth opportunity area in which HBB

on achieving further penetration of the global

has not previously participated. This segment

commercial market through a commitment to

accounts for approximately one-third of the U.S.

an enhanced global product line for chains and

small kitchen appliance market, and its target

distributors serving the global food service and

consumer is financially strong. The company also

hospitality markets. HBB is enhancing its global

is currently working with the Jamba Juice Company

commercial product line, particularly with new

to create a product line focused on blending and
juicing under the Jamba® brand. HBB will introduce
the first Jamba® branded products in 2015. HBB is
pursuing other opportunities to create additional

innovative blending and mixing platforms, and

strengthening its food service and hospitality

offerings in order to achieve further market

penetration in this segment. Over the near term,

product lines that can be distributed in high-end

HBB anticipates continuing to build distribution

or specialty stores and on the Internet.

capabilities and resources in the international

Fourth, HBB is focused on expanding its

food service market, where products and services

retail presence internationally in the emerging

will be directed at global food service chains.

HBB is optimistic that it will be able to build

During 2014, Kitchen Collection closed a

on the momentum achieved in 2014 by focusing

significant number of stores early in the year and

on these five strategic initiatives as a solid set of

opened a smaller number of stores toward the

strategies for profitable growth. HBB believes

end of the year. By the end of 2014, essentially

it is well-positioned to continue its leadership

most of the stores with recurring poor results

position in the small kitchen appliances industry.

were closed or were scheduled for closure in

Achieving its $750 million sales objective will

help move the company toward achieving

its near-term financial objective of 8 percent

operating profit margin and its long-term financial

early 2015. As part of this process, the remaining
Le Gourmet Chef® outlet stores will be evaluated,
and some may be converted to Kitchen Collection®
stores. The company will also continue to evaluate

objective of a minimum 10 percent operating

and, as lease contracts permit, close or restructure

profit margin in the years ahead. It also expects

leases for underperforming stores.

to continue to be a substantial generator of cash

flow before financing activities, with a continued

low level of capital expenditures required.

Kitchen Collection

Kitchen Collection’s vision is to be a leading

Kitchen Collection has a strong core in its
Kitchen Collection® store format in outlet malls.
In the near term, Kitchen Collection expects to

add stores cautiously and focus its growth on
its Kitchen Collection® store format, with new
stores expected to be located in sound positions

specialty retailer of kitchenware in outlet malls

in strong outlet malls. As the company reaches

and to a lesser degree traditional malls through-

a solid core store portfolio, focus will shift to

out the United States. However, to achieve this

comparable store sales growth. Kitchen Collection

vision, Kitchen Collection must increase the

expects to accomplish this by enhancing sales

number of customers coming into its stores, which

volume and profitability through continued

is difficult in an environment in which many of its

refinement of its format and ongoing review of

target consumers are financially stressed. High

specific product offerings, merchandise mix, store

unemployment or underemployment, fewer two-

displays and appearance, while continuing to

income families and lower rates of household

improve inventory efficiency and store inventory

formation have resulted in fewer visits to many of

controls. A particular focus will be on increasing

the malls and outlets where Kitchen Collection has

sales of higher-margin products. Nonetheless,

store locations. In addition, intense competitive

at current mall and store traffic levels, reaching

pressure for value has resulted in additional

the company’s 5 percent operating profit margin

discounting and brought margins under pressure.

target will be challenging.

In this environment, not all malls where Kitchen

Overall, Kitchen Collection is dealing with a

Collection maintains stores are doing well. In the

difficult environment and evolving aggressively in

strong malls in which Kitchen Collection has a

a constructive manner. Capital expenditures are

good store position, its stores do well, but stores in

expected to be modest, with generation of positive

struggling malls with poor store locations are not

cash flow before financing activities expected.

doing well, despite improvements to the Kitchen
Collection® store format over the past few years.

Conclusion and NACCO Outlook

the stock repurchase program the Company

NACCO is a strong, multi-industry company

announced in November 2013, which permits the

with leading businesses in the mining and small

repurchase of up to $60 million of the Company’s

appliances industries. The Company continues to

outstanding Class A common stock. Under a

believe HBB’s growth opportunities are significant.

previous stock repurchase program which ran

While growth opportunities also are significant

from November 2011 to November 2013, the

at NACoal, they are largely based on growth at

Company repurchased approximately 624,000

existing mines and those in development. Both

shares of Class A common stock for an aggregate

HBB and NACoal will be prudent in pursuing

purchase price of $35.6 million.

any new opportunities. NACCO is confident that

NACoal and HBB have the right strategic initiatives

n n n

in place to move them closer to achieving their

We would like to recognize Jack Turben, who

long-term growth and financial objectives. Kitchen

chose to retire from the NACCO and subsidiary

Collection’s long-term prospects at this time are

Boards this past May, after serving for 17 years.

uncertain, but its near-term prospects are positive

He also served as chair of our Finance Committee.

and should improve significantly. NACCO is well

Jack brought unique and valuable perspectives

positioned to support its individual businesses

to the Board from his experiences as a real

in the years ahead. Each subsidiary is benefitting

pioneer and leader in the private equity arena.

from programs previously put in place which,

We appreciate his many contributions and wish

when combined with the initiatives now being

him well in retirement.

implemented, should improve income and return

In closing, we would like to thank all of our

on total capital employed at each business over

subsidiaries’ customers, retailers and suppliers,

the next few years. In addition, the Company

and all of NACCO’s stockholders, for their

expects each business to generate significant

continued support. Most importantly, we would

cash flow before financing over time, which it

also like to thank all employees of NACCO and its

expects to use mainly to pay dividends, repurchase

subsidiary companies for their continued hard

stock when that is an attractive investment for

work. We continue to have great confidence

its stockholders, and reduce debt.

in the management teams leading each of our

As of December 31, 2014, NACCO had

subsidiaries and the parent company, and we

repurchased 680,013 shares of its Class A common

are confident these teams can successfully

stock for an aggregate purchase price of $36.0

implement their respective strategic initiatives

million, including $35.1 million of stock purchased

to enhance the Company’s sales and profits over

during 2014. These purchases were made under

the next few years.

Alfred M. Rankin, Jr.
Chairman, President and Chief Executive Officer
NACCO Industries, Inc.

Robert L. Benson
President and Chief Executive Officer
The North American Coal Corporation

Gregory H. Trepp
President and Chief Executive Officer
Hamilton Beach Brands, Inc.
Chief Executive Officer
The Kitchen Collection, LLC

Supplemental Data

Reconciliation of 2014 and 2013 Net Income (Loss) “As reported” to Adjusted Income:

2014 Net Loss, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-lived asset impairment charge, after taxes of $38,680 . . . . . . . . . . . . . .
2014 Adjusted Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(In thousands, except per share data)

NACoal

Consolidated

Year Ended
2014

$ (50,977)
66,439
15,462

Year Ended
2014

$ (38,118)
66,439
28,321

Year Ended
2013

Diluted
earnings per
share

(5.02)
8.74
3.72

Diluted
earnings per
share

2013 Net Income, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill impairment charge, after taxes of $1,400 . . . . . . . . . . . . . . . . . . . . .
2013 Adjusted Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31,926
2,573
34,499

44,450
2,573
47,023

5.47
0.32
5.79

Adjusted Income is a measure of income that diﬀers from Net Income (Loss) measured in accordance with U.S. GAAP. The Company has reported Adjusted
Income and Diluted earnings per share for the years ended December 31, 2014 and 2013 excluding the net eﬀect of the long-lived asset and goodwill impairment
charges, respectively. Management believes a discussion excluding these impairment charges is more reﬂective of NACCO’s and NACoal’s underlying business
operations and enables investors to better understand the results of operations of the Company.

Calculation of Return on Capital Employed and Return on Equity:

(In millions, except percentage data)

2014
2014 Average Equity (12/31/2013 and each of 2014’s quarter ends) . . . . . . .
2014 Average Debt (12/31/2013 and at each of 2014’s quarter ends) . . . . . .
2014 Average Cash (12/31/2013 and at each of 2014’s quarter ends) . . . . . .
Total 2014 average capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2014 Net income (loss), as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2014 Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2014 interest expense at 38%* . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed = actual net income (loss)

before interest expense, net, after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed percentage(1) . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on equity percentage(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of Return on Capital Employed and Return on Equity:

2013
2013 Average Equity (12/31/2012 and each of 2013’s quarter ends) . . . . . . . .
2013 Average Debt (12/31/2012 and at each of 2013’s quarter ends) . . . . . . .
2013 Average Cash (12/31/2012 and at each of 2013’s quarter ends) . . . . . . .
Total 2013 average capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2013 Net income (loss), as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2013 Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2013 interest expense at 38%**. . . . . . . . . . . . . . . . . . . .
Actual return on capital employed = actual net income (loss)

NACoal

HBB

Kitchen
Collection

139.8
179.8

(0.1)
319.5

(51.0)
5.2
(2.0)

(47.8)
(15.0%)
(36.5%)

53.5
32.3
(2.8)
83.0

23.1
1.1
(0.4)

23.8
28.7%
43.2%

NACoal

HBB

121.2
140.3

(1.2)
260.3

31.9
3.1
(1.2)

33.8
13.0%
26.3%

48.8
27.2
(1.8)
74.2

25.1
1.3
(0.5)

25.9
34.9%
51.4%

32.2
8.1
(1.7)
38.6

(4.6)
0.4
(0.2)

(4.4)
(11.4%)
(14.3%)

Kitchen
Collection

38.8
7.3
(3.1)
43.0

(6.9)
0.4
(0.2)

(6.7)
(15.6%)
(17.8%)

(1) Return on capital employed is provided solely as a supplemental disclosure with respect to income generation because management believes it provides

useful information with respect to earnings in a form that is comparable to the Company’s cost of capital employed, which includes both equity and debt
securities, net of cash.

(2) Return on equity is deﬁned as net income divided by average equity.

* Tax rate of 38% represents the Company’s target marginal tax rate compared with 2014’s eﬀective income tax rate of 50.2%.
** Tax rate of 38% represents the Company’s target marginal tax rate compared with 2013’s eﬀective income tax rate of 20.2%.

Directors and Oﬃcers

NACCO Industries, Inc.

Officers of Subsidiaries

The North American Coal
Corporation

Alfred M. Rankin, Jr.
Chairman
Robert L. Benson
President and Chief Executive Officer
J.C. Butler, Jr.
Senior Vice President-Project
Development, Administration and
Mississippi Operations
Carroll L. Dewing
Vice President-North Dakota, Texas
and Florida Operations, Human
Resources and External Affairs,
President, The Coteau Properties
Company
Michael J. Gregory
Vice President-Marketing and
Special Projects
Miles B. Haberer
Associate General Counsel,
Assistant Secretary and Director-Land
Mary D. Maloney
Associate General Counsel, Assistant
Secretary and Senior Director-
Benefits & Compensation
John D. Neumann
Vice President, General Counsel
and Secretary
J. Patrick Sullivan, Jr.
Vice President and
Chief Financial Officer
Harry B. Tipton III
Vice President-Engineering, and
Alabama and Louisiana Operations
Jesse L. Adkins
Associate Counsel and
Assistant Secretary
K. Donald Grischow
Treasurer, Director-Compensation and
Benefits and Global Risk Management
John R. Pokorny
Controller

Hamilton Beach Brands, Inc.

Alfred M. Rankin, Jr.
Chairman
Gregory H. Trepp
President and Chief Executive Officer
Gregory E. Salyers
Senior Vice President,
Global Operations
R. Scott Tidey
Senior Vice President, North America
Sales and Marketing
Keith B. Burns
Vice President, Engineering and
Information Technology
Kathleen L. Diller
Vice President, General Counsel
and Secretary
Dana B. Sykes
Associate General Counsel, Assistant
Secretary and Senior Director, Human
Resources
James H. Taylor
Vice President and
Chief Financial Officer
Richard E. Moss
Senior Director, Finance & Treasurer
J.C. Butler, Jr.
Assistant Secretary
John D. Neumann
Assistant Secretary

The Kitchen Collection, LLC

Alfred M. Rankin, Jr.
Chairman
Gregory H. Trepp
Chief Executive Officer
Robert O. Strenski
President
Randy L. Sklenar
Vice President-Field Operations and
Human Resources
Karen E. Cavender
Controller
L.J. Kennedy
Secretary and Treasurer
J.C. Butler, Jr.
Assistant Secretary
John D. Neumann
Assistant Secretary

Directors:

Scott S. Cowen
President Emeritus, Tulane University
Former Professor and Dean of
Weatherhead School of Management
at Case Western Reserve University
John P. Jumper
Chairman of the Board of
Leidos Holdings, Inc.
Retired Chief of Staff,
United States Air Force
Dennis W. LaBarre
Retired Partner, Jones Day
Richard de J. Osborne
Retired Chairman and Chief Executive
Officer, ASARCO Incorporated
Alfred M. Rankin, Jr.
Chairman, President and
Chief Executive Officer,
NACCO Industries, Inc.
Chairman, President and
Chief Executive Officer,
Hyster-Yale Materials Handling, Inc.
James A. Ratner
Executive Vice President of Forest City
Enterprises, Inc. and Chairman and
Chief Executive Officer of Forest City
Commercial Group
Britton T. Taplin
Self employed (personal investments)
David F. Taplin
Self employed (tree farming)
David B. H. Williams
Partner of Williams, Bax & Saltzman, P.C.

Officers:

Alfred M. Rankin, Jr.
Chairman, President and
Chief Executive Officer
J.C. Butler, Jr.
Senior Vice President–Finance, Treasurer
and Chief Administrative Officer
Elizabeth I. Loveman
Vice President and Controller
John D. Neumann
Vice President, General Counsel and
Secretary
Miles B. Haberer
Associate General Counsel and
Assistant Secretary
Mary D. Maloney
Associate General Counsel,
Assistant Secretary and Senior Director-
Benefits & Human Resources
Robert L. Benson
President and Chief Executive Officer –
The North American Coal Corporation
Gregory H. Trepp
President and Chief Executive Officer –
Hamilton Beach Brands, Inc.
Jesse L. Adkins
Associate Counsel and
Assistant Secretary

Corporate Information

Annual Meeting

The Annual Meeting of Stockholders of NACCO
Industries, Inc. will be held on May 14, 2015, at
9:30 a.m. at the corporate office located at:
5875 Landerbrook Drive, Cleveland, Ohio 44124

Form 10-K

Additional copies of the Company’s Form 10-K filed
with the Securities and Exchange Commission are
available free of charge through NACCO Industries’
website (www.nacco.com) or by request to:

Investor Relations
NACCO Industries, Inc.
5875 Landerbrook Drive, Suite 220
Cleveland, Ohio 44124
(440) 229-5130

Stock Transfer Agent and Registrar

Stockholder Correspondence:
Computershare
P.O. Box 30170
College Station, TX 77842-3170

Overnight Correspondence:
Computershare
211 Quality Circle, Suite 210
College Station, TX 77845

(800) 622-6757 (U.S., Canada and Puerto Rico)
(781) 575-4735 (International)

Legal Counsel

McDermott Will & Emery LLP
227 West Monroe Street
Chicago, Illinois 60606

Independent Registered Public
Accounting Firm

Ernst & Young LLP
950 Main Ave., Suite 1800
Cleveland, Ohio 44113

Stock Exchange Listing

The New York Stock Exchange
Symbol: NC

Investor Relations Contact

Investor questions may be addressed to:

Investor Relations
NACCO Industries, Inc.
5875 Landerbrook Drive, Suite 220
Cleveland, Ohio 44124
(440) 229-5130
E-mail: ir@naccoind.com

NACCO Industries Website

Additional information on NACCO Industries
may be found at the corporate website,
www.nacco.com. The Company considers this
website to be one of the primary sources of
information for investors and other interested
parties.

Subsidiary Company Websites

The websites for NACCO’s subsidiaries are
as follows:

Hamilton Beach Brands–U.S.:
www.hamiltonbeach.com
www.proctorsilex.com
www.commercial.hamiltonbeach.com
Hamilton Beach Brands–Mexico:
www.hamiltonbeach.com.mx
Weston Brands:
www.westonproducts.com
Kitchen Collection:
www.kitchencollection.com
www.legourmetchef.com
North American Coal:
www.nacoal.com

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Environmental Benefits

This Annual Report on Form 10K is printed using postconsumer waste recycled paper and vegetablebased inks.
By using this environmental paper, HysterYale Materials Handling, Inc. saved the following resources:

29 trees pre
served for the
future

83 lbs. water
borne waste
not created

12,260 gal.
wastewater
flow saved

1,356 lbs.
solid waste
not generated

2,671 lbs. net
greenhouse
gases prevented

20,442,500
BTUs energy
not consumed

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5875 Landerbrook Drive, Suite 220 • Cleveland, Ohio 44124
An Equal Opportunity Employer