NACCO Industries, Inc. Annual Report 2016

FY2016 Annual Report · NACCO Industries, Inc.

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NACCO Industries, Inc.
2016 Annual Report
Strategic Update

NACCO Industries, Inc. at a Glance

Principal Businesses

2016
Financial Results

Market Positions

North American Coal (“NACoal”)
Headquarters: Dallas, Texas
North American Coal mines coal primarily
for use in power generation and provides
value-added services for natural resource
companies.

MINING

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 Wolf Gourmet® and CHI®**.

Kitchen Collection
Headquarters: Chillicothe, Ohio
Kitchen Collection is a national specialty
retailer of kitchenware in outlet 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 within the
Navajo Nation in New
Mexico to adjacent or
nearby power plants or
coal processing facilities.

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 primarily
distributed through mass
merchants, national
department stores, whole-
sale distributors, other
retail sales outlets and
the Internet.

Kitchen Collection:
Kitchen Collection is
a leading specialty
retailer of kitchen and
related products in
outlet malls with 223
stores throughout
the United States at
December 31, 2016.

NACoal:
Revenues:

$111.1 million
Operating profit:
$5.6 million

Net income:

$8.2 million
Adjusted income:(1)
$25.4 million

Equity:

$105.6 million
Return on Equity:(1)

7.5%

Return on Capital
Employed:(1)
5.2%

HBB:
Revenues:

$605.2 million
Operating profit:
$43.0 million

Net income:

$26.6 million

Equity:

$44.1 million
Return on Equity:(1)

51.1%

Return on Capital
Employed:(1)
30.5%

Kitchen Collection:
Revenues:

$144.4 million
Operating profit:
$0.4 million

Net loss:

$0.4 million

Equity:

$21.4 million
Return on Equity:(1)

(1.6%)

Return on Capital
Employed:(1)
(1.2%)

(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.

**Wolf Gourmet® is a registered trademark of the Sub-Zero Group, Inc.
**CHI® is a registered trademark of Farouk Systems, 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:
Earn a minimum return
on capital employed of
13 percent, maintain or
increase the profitability
of all existing mining
operations and achieve
income growth from
development of new
mining and services
ventures

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

NACoal:
• Coal mines provide steady income and
cash flow before financing activities
• Coal sales contracts are structured
to eliminate exposure to market
fluctuations of coal prices

• 1.9 billion tons of lignite coal reserves,
of which approximately 1.0 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

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
• Strong core Kitchen Collection® store

portfolio in outlet malls

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

NACoal:
• Using a disciplined approach and utilizing NACoal’s

core cost-plus business model, pursue:
– Additional opportunities to serve as a contract

miner in new or existing coal mining operations
– Opportunities in non-coal mining operations, such

as aggregates or other minerals

– Opportunities to expand value-added services

HBB:
• Enhance placements in the North American consumer

business

• Achieve a leadership position in ecommerce by

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

• Expand placements in the “only-the-best” high-end
market with strong brands and broad product lines
• Expand internationally in emerging Asian and Latin

American markets

• Achieve further penetration of the global commercial

market through an enhanced global product line

• Leverage brands, sourcing, distribution and ecommerce

expertise to achieve category and channel expansion

Kitchen Collection:
• Focus on improvement of comparable store sales growth
– Enhance sales volume and profitability through refine-
ment of store formats and specific product offerings to
improve customer transaction closure rates

– Enhance customers’ store experience through

improved customer interaction

• Maintain inventory efficiency and store inventory controls
• Increase sales of higher-margin products
• Optimize store portfolio with Kitchen Collection® stores
in high-traffic locations in strong outlet malls and exit
stores that do not generate acceptable returns

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

Year Ended December 31

(In thousands, except per share data)

2016(1)

2015

2014(1)

2013

2012(2)

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

$856,438
$ 41,715

$ 915,860
$ 31,827

$ 896,782
$ (66,309)

$932,666
$ 61,336

$873,364
$ 67,642

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

$ 29,607
–
$ 29,607

$ 21,984
–
$ 21,984

$ (38,118)
–
$ (38,118)

$ 44,450
–
$ 44,450

$ 42,163
66,535
$108,698

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 . . . . . . . . . . . . . . .

$ 4.34
–
$ 4.34

$ 3.14
–
$ 3.14

$ (5.02)
–
$ (5.02)

$ 5.48
–
$ 5.48

$ 5.04
7.93
$ 12.97

$ 4.32
–
$ 4.32

$ 3.13
–
$ 3.13

$ (5.02)
–
$ (5.02)

$ 5.47
–
$ 5.47

$ 5.02
7.90
$ 12.92

Per Share and Share Data:
Cash dividends(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Market value at December 31. . . . . . . . . . . . . . . . . .
Stockholders’ equity at December 31 . . . . . . . . . . .

$ 1.0650
$ 90.55
$ 32.50

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

6,779
6,818
6,854

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

$ 80,648
$668,021
$120,295
$220,293

$ 1.0450
$ 42.20
$ 29.42

6,837
7,001
7,022

$ 1.0225
$ 59.36
$ 29.23

7,236
7,590
7,590

$ 1.0000
$ 62.19
$ 37.83

7,872
8,105
8,124

$ 5.3775
$ 60.69
$ 33.68

8,353
8,384
8,414

$ 52,499
$ 655,408
$ 160,113
$ 201,138

$ 61,135
$ 770,520
$ 191,431
$ 211,474

$ 95,390
$809,956
$152,431
$297,780

$139,855
$776,306
$135,448
$281,331

(1) During 2014, NACoal recorded a non-cash, asset impairment charge of $105.1 million pre-tax for Centennial’s long-lived asset group. Centennial ceased active
mining operations at the end of 2015. During the third quarter of 2016, NACoal recorded an additional non-cash impairment charge of $17.4 million pre-tax
related to Centennial’s assets.

(2) During 2012, NACCO spun off Hyster-Yale Materials Handling, Inc., 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) 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.

Year Ended December 31

2016(1)

2015

2014(1)

2013

2012(2)

(In thousands, 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 . . . . . . . . . . . . . . . . . .

$ (6,082)
18,581
7,097
203

$ 95,925
13,941
12,548
(14,412)

$ 34,940
58,731
3,833
(3,569)

$ 19,799

$ 108,002

$ 93,935

$ 29,525
40,754
(10,071)
(7,143)

$ 53,065

$ 50,158
27,390
3,754
(6,96 7)

$ 74,335

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(4)
North American Coal Corporation . . . . . . . . . . . .
Hamilton Beach Brands . . . . . . . . . . . . . . . . . . . . .
Kitchen Collection . . . . . . . . . . . . . . . . . . . . . . . . . .
NACCO and Other . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Cash Flow before Financing Activities
from continuing operations(4) . . . . . . . . . . . . . . . . . .

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

Other Data:
Adjusted EBITDA(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (3,916)
(4,788)
(1,137)
24

$ (1,512)
(4,775)
(1,768)
(236)

$ (44,143)
(29,516)
(792)
(483)

$ (56,185)
(2,278)
(2,113)
(158)

$ (56,320)
(3,215)
(3,852)
(381)

$ (9,817)

$ (8,291)

$ (74,934)

$ (60,734)

$ (63,768)

$ 31,024
53,943
2,696
(3,545)

$ 94,413
9,166
10,780
(14,648)

$ (50,225)
(10,935)
6,305
(280)

$ (26,660)
38,476
(12,184)
(7,301)

$ (6,162)
24,175
(98)
(7,348)

$ 84,118

$ 99,711

$ (55,135)

$ (7,669)

$ 10,567

$ (55,710)

$(108,301)

$ 20,979

$ (36,776)

$ (24,520)

$ 76,685

$ 54,929

$ 63,351

$ 88,815

$ 81,946

Total employees at December 31(6) . . . . . . . . . . . . . .

3,600

4,000

4,100

4,300

(4) Cash Flow before Financing Activities is equal to net cash provided by operating activities less net cash used for investing activities.
(5) 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, 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.

(6) Includes employees of Weston Brands starting in 2014, Centennial from 2012 to 2014 and the unconsolidated mines for all years presented. Excludes

employees of Hyster-Yale for all years presented.

Year Ended December 31

2016(1)

2015

2014(1)

2013

2012(2)

$ 29,607
–

(In thousands)
Calculation of Adjusted EBITDA(5)
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discontinued operations, net of tax . . . . . . . . . . . . .
Centennial long-lived asset
impairment charge . . . . . . . . . . . . . . . . . . . . . . . . . .
Centennial goodwill impairment charge . . . . . . . . .
Income tax provision (benefit) . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation, depletion and amortization
expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted EBITDA(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17,443
–
4,863
5,692
(196)

–
–
2,815
6,924
(474)

105,119
–
(38,455)
7,566
(831)

$ (38,118)
–

28,070
$ 63,351

23,680
$ 54,929

19,276
$ 76,685

$ 21,984
–

$ 44,450
–

$ 108,698
(66,535)

–
3,973
11,270
4,775
(225)

–
–
15,865
6,088
(162)

24,572
$ 88,815

17,992
$ 81,946

Discussion of 2016 Results

NACCO Industries, Inc. had a solid 2016. Consolidated results showed a substantial

improvement over 2015 primarily driven by strong results at the Company’s Hamilton Beach

Brands subsidiary. NACCO operates through three separate subsidiaries in the mining, small

appliances and specialty retail industries.

NACCO’s largest subsidiary, North American Coal (“NACoal”), performed as expected in

2016. While revenues decreased due largely to the cessation of coal production at Centennial

at the end of 2015, net income improved to $8.2 million from $5.6 million in 2015. Both 2016

and 2015 were unfavorably affected by substantial charges and operating losses at NACoal’s

Centennial operations.

Excluding Centennial, NACoal reported adjusted income of $25.4 million in 2016 compared

with adjusted income of $27.3 million in 2015. “Adjusted income” refers to net income adjusted

to exclude Centennial. (For reconciliations from GAAP results to the adjusted non-GAAP results,

see page 14.)

NACoal’s 2016 adjusted income benefited from a full year of deliveries at Camino Real,

commencement of production in May 2016 at Coyote Creek and improved operating results at

its limerock operations from a substantial increase in customer deliveries. In addition, Liberty

Fuels began delivering coal to its customer for facility testing and commissioning in July 2016.

These benefits were more than offset by a decrease in operating results from lower coal sales

pricing, as expected, and a reduction in tons sold at Mississippi Lignite Mining Company, as well

as higher operating expenses and reduced royalty and other income.

The Company’s Hamilton Beach Brands (“HBB”) subsidiary had an outstanding year. HBB’s

2016 net income increased substantially to $26.6 million from $19.7 million primarily as a result

of a shift in sales mix to higher-priced and higher-margin products, along with benefits from

lower costs. This improvement was partly offset by reduced sales volumes — the primary

driver of the decrease in HBB’s revenues.

A shift in consumer shopping patterns has continued to challenge the retail industry.

Despite this, the small loss position of Kitchen Collection, the Company’s retail subsidiary, held

steady in 2016. Kitchen Collection was successful in improving its gross margins, average sales

transaction value and transaction closure rates while it continued to close unprofitable stores

throughout the year. Kitchen Collection’s revenues declined as a result of store closures and

it reported a small net loss of $0.4 million in both 2016 and 2015.

Overall, 2016 consolidated net income improved to $29.6 million, or $4.32 per diluted

share, from $22.0 million, or $3.13 per diluted share in 2015. Consolidated revenues were

$856.4 million in 2016 compared with $915.9 million in 2015. Consolidated adjusted income

for the year ended December 31, 2016 was $46.8 million, or $6.82 per diluted share, compared

with adjusted income in 2015 of $43.7 million, or $6.22 per diluted share.

The first bucket of coal severed at North American Coal’s Coyote Creek Mine in North Dakota is loaded into a waiting truck on April 15, 2016.
Deliveries of coal to the Coyote Station near Beulah, ND began in the second quarter of 2016.

To Our Stockholders

Introduction

NACCO Industries, Inc., headquartered in
Cleveland, Ohio, is an operating holding company
with an established objective of increasing long-
term shareholder wealth, with a particular focus
on taxable investors. NACCO Industries operates
through three separate and independently
managed subsidiaries, with a small core of people
performing public company activities at the
corporate headquarters.

The North American Coal Corporation,
headquartered in Dallas, Texas, mines coal
primarily for use in power generation and

provides value-added services for natural
resource companies.

Hamilton Beach Brands, Inc., headquartered

in Richmond, Virginia, 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.

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

North American Coal

North American Coal’s (NACoal) mines operate

under contracts to supply coal to an individual

customer’s power plant or coal processing facility

for a long period of time, typically for decades.

The mines and the customer facilities are in close

proximity, often adjacent to one another. NACoal

also provides value-added services, such as

maintaining and operating draglines for independ-

ently owned limerock quarries through its North

American Mining division, operating and main-

taining a coal-processing system for a customer’s

power plant and providing ash-hauling services

for power plants and other facilities.

Unconsolidated Mines

NACoal employs a business model that

differs from most other mining industry partici-

pants. All but one of NACoal’s contracts include

“cost-plus” pricing terms under which NACoal’s

compensation includes reimbursement of all

operating costs, plus a comparatively small but

consistent amount of fees on each ton of coal or

heating unit (btu) delivered. The company refers

to these cost-plus mines as “unconsolidated

mines” because they are not consolidated in the

Company’s financial statements. The pre-tax

profits generated from these mines are shown

separately in the Company’s income statement

as “Earnings of unconsolidated mines.”

Each cost-plus contract specifies the indices

and mechanics by which agreed profits change

over time, generally in line with broad measures

of U.S. inflation rates. Financing for these mines

is supported by, or in some instances actually

provided by, NACoal’s customers to minimize costs

and is without recourse to NACoal or NACCO.

NACoal took over operations of a mine for

the Navajo Transitional Energy Company (NTEC)

on January 1, 2017. Under this agreement NACoal,

through its wholly owned subsidiary, Bisti Fuels,

acts as NTEC’s contract miner at NTEC’s Navajo
Mine, a surface coal mine located within the
Navajo Nation near Fruitland, New Mexico. Similar
to most of NACoal’s other mining agreements, the
agreement with NTEC is a cost-plus arrangement,
under which NTEC reimburses Bisti’s operating
costs, provides the capital required for the mine
and pays NACoal an agreed fee per btu of heating
value delivered. NTEC delivers that coal to the
third-party owners of the nearby Four Corners
Generating Station. Production is anticipated to
be 5 million to 6 million tons of coal per year when
the Four Corners Generating Station is operating
at anticipated levels.

NACoal and its customers strongly believe
that the structure of these long-term contracts
fully aligns long-term interests of the mine and
the customer in a way that assures low customer
costs over the long term. NACoal’s analysis of
historical data indicates that the power plants
served by NACoal are lower-cost producers of
electricity on their respective grids.

Consolidated Mines

NACoal has two consolidated mines, one

active and one inactive. The Company refers to
these mines as “consolidated mines” because
their results are consolidated in the Company’s
financial statements. NACoal’s active coal mine,
Mississippi Lignite Mining Company (MLMC),
operates pursuant to a more traditional business
model in which NACoal pays all operating costs
and provides the capital for the mine.

MLMC delivers coal to a single power plant
adjacent to the mine. MLMC’s coal sales price is
not subject to spot coal market fluctuations, as
its customer pays a contractually agreed-upon
price which adjusts monthly, primarily based on
changes in the level of established indices, which
reflect general U.S. inflation rates, including cost
components such as labor and diesel fuel. MLMC’s
contract with its customer expires in 2032.

American Mining. North American Mining’s
compensation includes reimbursement for
all costs, plus an agreed profit on cubic yards
excavated or limerock delivered. During 2016,
NACoal expanded the geographic scope of a
cost-plus agreement with an existing customer
to cover new quarries in Central Florida and
extended this contract through 2023. In addition,
during the fourth quarter of 2016, NACoal began
operating and maintaining draglines for a new
customer in Central Florida under a cost-plus
arrangement.

NACoal also provides coal handling, pro-
cessing and drying services for a number of
customers. For example, NoDak Energy Services,
LLC operates and maintains a coal processing
system for a power plant customer pursuant
to a cost-plus arrangement.

North American Coal Royalty Company, a
consolidated entity, provides surface and mineral
acquisition and lease maintenance services
related to NACoal’s operations.

Safety and Environmental Excellence

NACoal consistently ranks among the safest

and most environmentally responsible coal mining
companies in the country. The National Mining
Association ranked NACoal among the safest coal
mining companies in the United States based
on 2016 Mine Safety and Health Administration
(MSHA) incident rates. Safety is at the very core of
NACoal’s culture, embedded deeply in employee
training programs, operating procedures and best
practices shared among all of NACoal’s operations.
NACoal’s permitting, mining and reclamation
activities utilize state-of-the-art technology and a
commitment to excellence to ensure that activities
comply with, or exceed, legal requirements. Work
on mine sites is performed with the greatest
degree of care to ensure that land is returned to
a productive natural state. Frequently, NACoal
employees and their families are farmers, ranchers

A dragline operated and maintained by NACoal’s
North American Mining division excavates lime-
rock from a quarry in Florida. North American
Mining expanded its Florida dragline services
business in 2016 by extending an existing contract
and entering into a contract with a new customer.

NACoal ceased coal production at its Alabama
mining operation, Centennial Natural Resources, at
the end of 2015. The cessation of coal production
at Centennial eliminated NACoal’s only direct
exposure to coal market price volatility. Centennial
continues to evaluate strategies to maximize
cash flow, including through the sale of mineral
reserves and equipment. Most of the equipment
and parts inventory utilized at Centennial were
sold in 2016. Cash expenditures related to mine
reclamation at Centennial will continue until
reclamation is complete, or ownership of, or
responsibility for, the mines is transferred. NACoal
is also evaluating a range of strategies for its
Alabama mineral reserves, including holding
reserves with substantial unmined coal tons
for sale or contract mining when conditions in
Alabama and global coal markets improve.

Value-added Services

NACoal’s “cost-plus” business model also
applies to its value-added service operations.
NACoal maintains and operates draglines for
extraction of limerock at independently owned
limerock quarries. This business is operated as
a division of NACoal, and is referred to as North

and outdoor enthusiasts who live near mining
areas. They care deeply about the land, water and
wildlife where they live, and are excellent stewards.

As evidence of this corporate and individual

commitment to the environment, NACoal’s
Freedom Mine was recognized by the North
Dakota Public Service Commission with its 2016
Excellence in Surface Coal Mining and Reclamation
Award. The Freedom Mine completed land recla-
mation ahead of schedule and far in advance
of regulatory requirements.

Strategic Initiatives and Long-term View
NACoal’s unconsolidated operations, which

constitute a large majority of its earnings and
cash flow capabilities, provide a strong core that
is central to NACoal’s business model. NACoal
has been very fortunate to enter into cost-plus
agreements with eight new customers since 2009
to develop or operate new mines, or provide
value-added services to customers. Coyote Creek
began delivering coal to its customer in mid-2016,
Liberty Fuels’ customer began accepting deliveries
during the second half of 2016 for startup and
testing at its facility, and Bisti Fuels’ customer
began accepting deliveries on January 1, 2017.
Since 2009, NACoal has also successfully extended
a number of key mining contracts with existing
customers. NACoal expects to continue to be a
low-cost miner of coal for delivery to its customers.

Profitability at MLMC, NACoal’s only operat-

ing consolidated coal mine, is affected by its

customer’s demand for coal, changes in the

indices that determine MLMC’s index-based

sales price and actual costs incurred. As diesel

fuel is heavily weighted among the indices used

Bisti Fuels Company severed its first coal
at the Navajo Mine for its customer, Navajo
Transitional Energy Company, on January 1, 2017.
The Navajo Mine is located within the
Navajo Nation in New Mexico.

from the 2012 level of $45.2 million through
the development and maturation of its newer
operations and normal escalation of contractual
compensation at its existing operations. Income
related to NACoal’s newer mines, including the
income from commencement of production at
Bisti Fuels and increased deliveries at Liberty
Fuels, is expected to advance progress toward
this goal in 2017 and beyond. In recent years,
generally low U.S. inflation rates have slowed
the rate by which fees at unconsolidated mines
have escalated, and some newer mines, such
as Liberty Fuels, have experienced slower than
anticipated growth in customer demand. As a
result, achievement of the goal to increase
earnings of the unconsolidated operations by
50% is currently expected to occur in 2020 or
2021, later than previously anticipated, with the
timing ultimately dependent on future inflation
rates and customer demand.

to determine coal sales prices, the persistence of

NACoal believes that a large majority of

low diesel fuel prices negatively affects earnings

at MLMC.

Over the longer term, NACoal continues
to expect that the earnings of its unconsolidated
operations will increase by approximately 50%

consumers in the United States would benefit
from a domestic energy policy that balances
affordability, energy needs and environmental
responsibility. The company believes that, for the
foreseeable future, coal must remain an integral

part of the nation’s total energy mix for the United
States to continue to be competitive in a global
economy. NACoal will continue to monitor pending
regulations and legislation and will take a leader-
ship role to help encourage reasonable regulation
by the government. Importantly, NACoal expects
to continue to address changes to domestic envi-
ronmental regulatory requirements by working
collaboratively with its customers, trade associa-
tions, representatives of regulatory bodies, and
government officials.

Given the unsupportive regulatory environ-
ment that has existed over the last several years
for developing new traditional coal-fired power
plants, and based on lessons learned at Centennial,
NACoal continues to take an extremely disciplined
approach with respect to growth. This includes
thoughtful deployment of NACoal’s core skills,
strengths and relationships. Opportunities may
exist to serve as a cost-plus contract miner for
those who continue to need coal for power
generation or other processes using coal. Also,
strategic growth could come from projects based
on new technologies that utilize coal, such as
integrated gasification combined cycle power
generation, and production of alternative fuels
made from coal, as well as other clean coal tech-
nologies and non-traditional products derived
from coal. NACoal is working with a range of
technical experts and potential partners who
could help develop projects based on these
technologies. NACoal is also well suited to serve
as a cost-plus contract miner in non-coal mining
operations, such as aggregates or other minerals.
Any significant growth in domestic coal mining
opportunities is largely dependent on the United
States adopting a more balanced energy policy in
which coal continues to play a key role, including
through new coal technologies. Developing new
opportunities and securing new contracts is a
long-term initiative that will take time. This is a
significant strategic priority for NACoal.

Overall, NACoal’s attractive but unusual
business model, based largely on long-term
cost-plus contracts, provides a solid foundation
for all of the company’s coal and limerock mining
operations and value-added service businesses.
This business model offers generally stable cash
flow before financing activities and requires
minimal capital investment, other than at MLMC,
which will continue to require ongoing replace-
ment capital. NACoal will continue to pursue
growth as the company’s newer mines reach full
production. NACoal expects to continue its record
of operational excellence in safety, environmental
stewardship and production at each of its mining
operations and, over time, to deliver profitability
that exceeds its financial objectives.

Hamilton Beach Brands
Overview

Hamilton Beach Brands’ (HBB) vision is to be

a leading designer, marketer and distributor of
small electric household and specialty housewares
appliances and of commercial products sold
worldwide under preferred brand names, and
to achieve profitable growth from innovative
solutions that improve everyday living.

Hamilton Beach Brands’ focus on consumer-
driven innovation led to the development of the
FlexBrew® Dual Single-Serve coffeemaker which
allows the consumer the flexibility to brew either
a single cup of coffee or two cups at once.

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 meaningful
competitive advantage. The only way to maintain
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 product development
expertise to help ensure that its 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 sales of
approximately $750 million over time by focusing
on its key strategic initiatives. As the company
focuses on this target sales level, HBB expects to
take advantage of increasing economies of scale
to improve its return on sales. HBB’s strategic
initiatives are as follows:

Placement Expertise: The most impactful
component of increasing market presence and
profitability is through increasing placements and
revenue in HBB’s core North American consumer
business. 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
will continue to introduce new products across a

The Hamilton Beach® Professional 14-Cup Dicing
food processor, one of the products in
Hamilton Beach’s premium line of counter-top
kitchen appliances, brings commercial quality
performance to the consumer’s kitchen.

wide range of brands, price points and categories,
leveraging its strong brand portfolio which includes
Proctor Silex®, Hamilton Beach®, Weston®, Wolf
Gourmet®, Hamilton Beach® Professional and a
new brand addition, CHI®, in 2017. HBB’s place-
ment success during the past several years has
enabled the Hamilton Beach® brand to become
the number-one small kitchen appliance brand
in the United States as measured by units sold.
Ecommerce: Ecommerce plays a significant
role in the industries in which HBB competes.
The U.S. small appliance industry has one of the
highest ecommerce penetration levels, with over
25% of total industry revenue generated through
ecommerce partners. Ecommerce penetration
in other countries varies significantly, but it is
growing quickly in every country where HBB
competes. HBB is investing in people, products
and capabilities to ensure its global ecommerce
sales grow at a faster rate than the industry.
Retailers are looking for partners that can not
only provide products, but also have the capabili-
ties and support for promotion, marketing and
distribution programs appropriate for the online

channel. As consumers’ shopping habits evolve
to rely more on the Internet, HBB is focused on
providing best-in-class retailer support, increasing
engagement with end users, including maintaining
websites that are appropriate for mobile devices,
and enhancing its programs designed to make
HBB the preferred partner for small appliances.
Only-the-Best Expansion: HBB has increased

focus and investment around its strategy to
become a leader in the “only-the-best” high-end
small appliance market segment. This segment
accounts for approximately one-third of the U.S.
small kitchen appliance market as measured by
revenue, and the target consumer is financially
strong. This “only-the-best” segment offers a
strong growth opportunity in an area in which HBB
has not historically participated. HBB participates
in the “only-the-best” high-end small kitchen
appliance market segment through a multi-year
licensing agreement with Sub-Zero Group, Inc.,
which began in 2014. The first phase of Wolf
Gourmet® products, including small appliances,
cutlery and cookware, is currently available in
a number of North American retail outlets and
is selling well. A robust roadmap of additional
product introductions is scheduled over the
coming years, and HBB expects to expand distri-
bution to additional countries around the globe.
In addition, HBB recently launched the Hamilton
Beach® Professional line, which was created to
leverage HBB’s commercial product development
expertise and provide products that enable
consumers to achieve professional results at
home. HBB is expanding the Weston® brand,
which is focused on the food-to-table and farm-
to-table segments, to include products sold in the
“only-the-best” category. CHI® is the most recent
addition to HBB’s brand portfolio. HBB expects to
introduce a CHI®-branded garment care line as a
result of a multi-year licensing deal with Farouk
Systems, Inc., the owner of the CHI® brand and
a proven global leader in the fashion industry.

International Market Growth: HBB is focused

on expanding its retail presence internationally,

specifically in the emerging growth markets of

Asia and Latin America. To achieve this growth,

HBB is working to enhance its understanding

of local consumers’ needs, developing products

to meet those needs and increasing sales and

marketing resources allocated to these markets,

especially in the mid- to high-end segments. While

HBB has a long-standing presence in the global

commercial products market, HBB’s historical

strength in the retail segment has been in the

U.S. consumer goods market, with approximately

20% of its total sales occurring outside the United

States in 2016. HBB’s objective is to increase

international sales to 35 to 45% of total sales

by concentrating on key markets. HBB’s efforts

will focus on continuing to expand its established

positions in Canada, Mexico, Central America and

South America, as well as further expanding HBB’s

position in the emerging markets of China and

Brazil. HBB expects to selectively pursue other

markets primarily by leveraging the Hamilton
Beach® and Wolf Gourmet® brands.

Hamilton Beach Brands’ Wolf Gourmet®
blender, 4-Slice toaster and 2-Slice toaster
are some of the latest products available in
a line of luxury countertop appliances created
through a licensing agreement with
Sub-Zero Group, Inc.

Global Commercial Leadership: While HBB
has a leading position in the commercial market,
it continues to focus on achieving further pene-
tration of the global commercial market through
a commitment to an enhanced global product
line for chains and distributors serving the
global food service and hospitality markets. HBB
is enhancing its global commercial product line,
particularly with innovative, new juicing, blending
and mixing platforms, and is strengthening its
food service and hospitality offerings to achieve
further market penetration in this segment. As the
Internet begins to alter the food-service industry
from a product marketing, customer penetration
and selling perspective, HBB is increasing invest-
ments and expertise to ensure it has industry-
leading capabilities.

Category and Channel Expansion: Driven
by changes brought about by ecommerce, HBB
sees a meaningful opportunity to leverage its
brands, sourcing, distribution and ecommerce
expertise by expanding more quickly into new
appliance categories through ecommerce part-
ners. Consumers trust HBB to bring high-quality,
safe products to market at the right value propo-
sition. Once HBB establishes ecommerce success
in a particular new category, it expects to be well
positioned to expand those new categories into
existing and new physical retail outlets.

HBB made meaningful progress in most
segments of its business in 2016. HBB believes
it is well-positioned to continue its leadership
position in the retail and commercial small
appliance industries. Achieving its $750 million
sales objective will help move the company
toward achieving its near-term financial objective
of 8% operating profit margin and its long-term
financial objective of a minimum 10% operating
profit margin in the years ahead. It also expects
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
specialty retailer of kitchenware in outlet malls
throughout the United States. A shift in consumer
shopping patterns has led to declining consumer
traffic to physical retail locations and reduced
in-store transactions as consumers buy more over
the Internet or utilize the Internet for comparison
shopping. Financial pressures on middle-market
consumers interested in housewares and small
appliances continue to persist and have also
adversely affected sales trends in these categories
over the last few years.

Over the past several years, Kitchen Collection
has taken a number of strategic steps to position
the business to deliver an acceptable financial
return in the near term. A number of performance
metrics have shown meaningful improvement
while other important challenges persist. Kitchen
Collection has consistently generated strong
gross margins, closed unprofitable stores,
reduced the inventory levels needed to run the
business, increased cash flow, improved its
customer transaction closure rate and reduced
overhead costs. While these efforts have signifi-
cantly improved and stabilized performance of
the business, the progress has not been enough
to overcome the challenge of reduced foot traffic
to physical retail locations.

As the business moves into 2017, Kitchen

Collection will continue to focus on the core
Kitchen Collection® store format in outlet malls.
Additional store closures are likely as Kitchen
Collection continues to focus on a smaller core
group of profitable Kitchen Collection® outlet
stores. The company will continue to optimize its
store portfolio with stores in high-traffic locations
in strong outlet malls and exit stores that do not
generate acceptable returns. Importantly, focus
will remain on improving comparable store sales
growth. Kitchen Collection expects to accomplish
this by increasing customer transaction closure

rates through further refinement of its format,
ongoing review of specific product offerings,
merchandise mix, store displays and appearance,
and enhancing customers’ store experience
through improved customer interactions. A
particular focus will be on increasing sales of
higher-margin products. Nonetheless, at the
current foot traffic levels, reaching the company’s
long-term 5% operating profit margin target will
be challenging. Capital expenditures are expected
to be modest, and cash flow before financing
activities is expected to be positive.

Overall, Kitchen Collection is dealing with a
difficult environment and evolving aggressively
in a constructive manner.

Conclusion and NACCO Outlook

NACCO is a strong, multi-industry company
with leading businesses in the mining and small
appliances industries. The Company continues to
believe HBB’s growth opportunities are signifi-
cant. NACCO is confident that HBB has the right
strategic initiatives in place to move it closer to
achieving its long-term growth and financial
objectives. While growth opportunities are also
significant at NACoal, they are largely based on
growth at existing and newer mines and expansion
of value-added services for natural resource
companies. Both HBB and NACoal will be prudent
in pursuing any new opportunities. Kitchen
Collection’s long-term prospects at this time are
uncertain, but its near-term prospects are positive
and should improve. NACCO is well-positioned
to support its individual businesses in the years
ahead. Each subsidiary is benefitting from
programs previously put in place which, when

combined with the initiatives now being imple-
mented, should improve income and return on
total capital employed at each business over
the next few years. In addition, the Company
expects North American Coal and Hamilton Beach
to generate significant cash flow before financing
over time, which it expects to use mainly to pay
dividends, repurchase stock, when that is an
attractive investment for its shareholders, and
reduce debt. Of course, NACoal and HBB will
continue to look for internal and external oppor-
tunities to expand their range of activities in the
long term.

In May 2016, the Company announced a
stock repurchase program, which permits the
repurchase of up to $50 million of the Company's
outstanding Class A common stock. Since incep-
tion, NACCO has repurchased approximately
109,300 shares for an aggregate purchase price
of $6.0 million.

n n n

In closing, we would like to thank all of our
subsidiaries’ customers, retailers and suppliers,
and all of NACCO’s stockholders, for their
continued support. Most importantly, we would
also like to thank all employees of NACCO and its
subsidiary companies for their continued hard
work. We continue to have great confidence in
the management teams leading each of our
subsidiaries and the parent company, and we
are confident these teams can successfully
implement their respective strategic initiatives
to enhance the Company’s sales and profits
over the next few years.

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

J.C. Butler, Jr.
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 2016 and 2015 Net Income "As reported" to Adjusted Income:

(In thousands, except per share data)

NACoal

Consolidated

Year Ended
2016

Diluted
earnings per
share

2016 Net Income, as reported. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to eliminate Centennial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 Adjusted Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,244
17,159
25,403

29,607
17,159
46,766

4.32
2.50
6.82

Year Ended
2015

Diluted
earnings per
share

2015 Net Income, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to eliminate Centennial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 Adjusted Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,619
21,684
27,303

21,984
21,684
43,668

3.13
3.09
6.22

Adjusted Income is a measure of income that diﬀers from Net Income measured in accordance with U.S. GAAP. The Company has reported Adjusted
Income and Diluted earnings per share for the years ended December 31, 2016 and 2015 excluding the net eﬀect of adjustments to eliminate Centennial.
Management believes a discussion excluding these adjustments to eliminate Centennial is more reﬂective of NACCO’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 thousands, except percentage data)

2016
2016 Average Equity (12/31/2015 and each of 2016’s quarter ends) . . . . . . . .
2016 Average Debt (12/31/2015 and at each of 2016’s quarter ends) . . . . . . .
2016 Average Cash (12/31/2015 and at each of 2016’s quarter ends) . . . . . . .
Total 2016 average capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NACoal
$ 110,554
108,020
(10,884)
$ 207,690

2016 Net income (loss), as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2016 Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2016 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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,244
4,140
(1,573)

10,811
5.2%
7.5%

HBB
51,954
40,167
(2,616)
89,505

26,557
1,165
(443)

27,279
30.5%
51.1%

2015
2015 Average Equity (12/31/2014 and each of 2015’s quarter ends) . . . . . . .
2015 Average Debt (12/31/2014 and at each of 2015’s quarter ends) . . . . . .
2015 Average Cash (12/31/2014 and at each of 2015’s quarter ends) . . . . . .
Total 2015 average capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NACoal
$ 107,240
132,308

(2,886)

$ 236,662

HBB
51,541
58,870
(1,373)
$ 109,038

2015 Net income (loss), as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2015 Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2015 interest expense at 38%** . . . . . . . . . . . . . . . . . .
Actual return on capital employed = actual net income (loss)

5,619
4,545
(1,727)

8,437
3.6%
5.2%

19,749
1,775
(675)

20,849
19.1%
38.3%

Kitchen
Collection

21,633
3,082
(5,370)
19,345

(355)
209
(79)

(225)
(1.2%)
(1.6%)

Kitchen
Collection

30,101
795
(4,681)
26,215

(420)
131
(50)

(339)
(1.3%)
(1.4%)

(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 2016’s eﬀective income tax rate of 14.1%.
** Tax rate of 38% represents the Company’s target marginal tax rate compared with 2015’s eﬀective income tax rate of 11.4%.

Directors and Oﬃcers

NACCO Industries, Inc.

Officers of Subsidiaries

The North American Coal
Corporation

Alfred M. Rankin, Jr.
Chairman
J.C. Butler, Jr.
President and Chief Executive Officer
Carroll L. Dewing
Vice President-Operations
Miles B. Haberer
Associate General Counsel,
Assistant Secretary and President,
North American Coal Royalty Company
Mary D. Maloney
Associate General Counsel and
Assistant Secretary
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
Jesse L. Adkins
Associate Counsel and
Assistant Secretary
Eric A. Dale
Treasurer and Senior Director,
Financial Planning and Analysis
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
Erin M. Israel
Vice President, Marketing and
Business Development
Dana B. Sykes
Vice President, General Counsel
and Secretary
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
D. Scott Butler
Corporate Controller

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
L. J. Kennedy
Director of Finance, Treasurer
and Secretary
J.C. Butler, Jr.
Assistant Secretary
John D. Neumann
Assistant Secretary

Directors:

John P. Jumper
Retired Chief of Staff,
United States Air Force
Dennis W. LaBarre
Retired Partner, Jones Day
Michael S. Miller
Retired Managing Director,
The Vanguard Group
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
Non-Executive Chairman
of Forest City Realty Trust, Inc.
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
President and Chief Executive Officer –
The North American Coal Corporation
Elizabeth I. Loveman
Vice President and Controller
John D. Neumann
Vice President, General Counsel and
Secretary
Miles B. Haberer
Associate General Counsel
Mary D. Maloney
Associate General Counsel,
Assistant Secretary and Senior Director-
Benefits & Human Resources
Gregory H. Trepp
President and Chief Executive Officer –
Hamilton Beach Brands, Inc.
Chief Executive Officer –
The Kitchen Collection, LLC
Jesse L. Adkins
Associate Counsel and
Assistant Secretary
Thomas A. Maxwell
Director of Financial Planning and
Analysis and Assistant Treasurer

Corporate Information

Annual Meeting

The Annual Meeting of Stockholders of NACCO
Industries, Inc. will be held on May 9, 2017, at
2:30 p.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
North American Coal:
www.nacoal.com

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

Environmental Benefits
E

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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(cid:3)

(cid:3)

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