Hamilton Beach Brands Holding Company · NYSE:HBB
Hamilton Beach Brands — Three Part Advisors Midwest IDEAS Conference 2022
36 slides from Hamilton Beach Brands's conference presentation, Aug 24, 2022
Slide 1: Three Part Advisors Midwest Ideas Conference – August 24, 2022
Investor Presentation Three Part Advisors Midwest Ideas Conference – August 24, 2022
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT: This presentation and any Q&A to follow may include forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue
Slide 3: Company Overview
Company Overview and Leading Provider of Small Kitchen Appliances Hamilton Beach Brands Hamilton Beach Brands (HBB) Holding Company HBB is a wholly owned subsidiary of (HBBHC) HBBHC. HBB is a leading designer, marketer and distributor of a wide range of HBBHC was spun off branded small electric hous
Slide 4: Investment Highlights
Investment Highlights Competitive Advantages Position HBB to Drive Results ▪ Commitment to Building Long-Term Shareholder Value ▪ Experienced Team with Deep Industry, Customer and Consumer Knowledge ▪ Leader in an Industry with Strong, Proven, Durable Demand ▪ Leading Portfolio of Trusted, Preferred
Slide 5: Millennials and Boomers Are Driving Industry Demand
Millennials and Boomers Are Driving Industry Demand ▪ The pandemic accelerated broader and deeper consumer adoption of small kitchen appliances that has continued as the pandemic has receded. ▪ The small kitchen appliance category has proven to be resilient during economic downturns. 5
Slide 6: Comprehensive Portfolio of Well-Known Trusted Brands
Comprehensive Portfolio of Well-Known Trusted Brands Value to Luxury, 50+ Categories Enables HBB to Meet the Needs of Most Retailers and Consumers Luxury Value Fondue Set #50+ Coffee #1 Category Coverage 6
Slide 7: Strategic Initiatives to Drive Long-Term Growth
Strategic Initiatives to Drive Long-Term Growth Deliver Profitable Growth from Innovative Solutions that Improve Everyday Living 7
Slide 8: 100+ Years of Market Leading Innovation
100+ Years of Market Leading Innovation New Product Development Is Focused On: Research-Driven Consumer Needs, Wants, Value Add Higher Priced, Higher Margin Products Large, Fast-Growing Categories Breakthrough/Disruptive Innovation Number of New Product Platforms Introduced Expect to Introduce ~130
Slide 9: 2022 New Products Across Brands and Categories
2022 New Products Across Brands and Categories 9
Slide 10: Strategic Initiative: Drive Core Growth
Strategic Initiative: Drive Core Growth Focused on Growth of Our Flagship Brands in Our Core North American Market (United States, Canada, Mexico, Latin America) • HB is the #1 brand in the USA with • Strong brand with a robust portfolio of products extremely high brand awareness and 4.4 and 4.4 sta
Slide 11: Hamilton Beach Is the #1 SKA Brand in USA
Hamilton Beach® Is the #1 SKA Brand in USA Hamilton Beach Brands Drives Retailer Traffic in Stores and Online % UNIT SHARE U.S. SMALL KITCHEN ELECTRICS Hamilton Beach® is ranked the #1 small kitchen appliance brand in the USA, in brick-and-mortar and ecommerce channels, based on units sold 9.5 7.9 6
Slide 12: Hamilton Beach Holds a Top Share in Categories
Hamilton Beach® Holds A Top 3 Share in 27 Categories Air Fryers Food Processors Multi Cookers Blending (Traditional) Food Chopper Pasta Makers Blending (Single Serve) Food Steamers Popcorn Makers Other Blending & Processing Fryers Pressure Cookers Bread Makers Garment Steamer Rice Cooker Citrus Juic
Slide 13: FlexBrew Trio
5 single-serve sizes to choose from Brew 7 single servings without refilling 56 oz. water reservoir —— _——— Hamilton Beach 13
Slide 14: Driving Growth of Proctor Silex Brand
Driving Growth of Proctor Silex® Brand ‘Simply Better’ Positioning ▪ Strong brand participating in a wide variety of categories. ▪ Building on storied brand heritage and solid levels of awareness with target consumer. ▪ Incorporating innovation and building out new Platinum Series line. ▪ Investing
Slide 15: Strong Lineup of Proctor Silex New Products
Strong Lineup of Proctor Silex® New Products 15
Slide 16: Strategic Initiative: Gain Share In The Premium Market
Strategic Initiative: Gain Share In The Premium Market Focused on Owned and Licensed Brands Growing Through Innovation, Exclusive Multiyear Licensing Agreements, Acquisitions 40% U.S. Small Kitchen Appliance Industry Dollars in the Premium segment have grown to ~40% of total In 2021, sales of the Co
Slide 17: Wolf Gourmet Countertop Appliances
Wolf Gourmet® Countertop Appliances Luxury Line Covers 10 of the Highest Demand Categories ▪ The Wolf Gourmet countertop portfolio is expected to continue to grow in sales, product category, and channel coverage ▪ Wolf Gourmet countertop appliances have a 4.6 star average online rating 17
Slide 18: New Bartesian Models: Commercial and Duet
New Bartesian® Models: Commercial and Duet Expertly Crafted Cocktails in Seconds • Bartesian has been a very strong seller since launch • Introducing Generation 2 with enhanced functionality • New: First Commercial model with exclusive bottle lock • New: 2-bottle model • Variety without complexity •
Slide 19: CHI Full-Sized Handheld Steamer
CHI® Full-Sized Handheld Steamer 19
Slide 20: Hamilton Beach Professional Line Leverages Commercial Expertise
Hamilton Beach Professional® Line Leverages Commercial Expertise For C ook s W ho Wa nt t o A c hie ve Prof e s s iona l R e s ult s a t H ome ▪ Commercial grade quality for home kitchens ▪ Full line covering 14 high- demand categories ▪ HBB continues robust new product development for this premium
Slide 21: Magnolia Bakery Hand Mixer by Hamilton Beach
Magnolia Bakery® Hand Mixer by Hamilton Beach® 21
Slide 22: Weston Line Targets Hunters and Gatherers
Weston® Line Targets Hunters and Gatherers Field-to-Table and Farm-to-Table Food Preparation Products ▪ Targeted to home chefs, hunters and gatherers who take a self- sustaining approach to food ▪ Line of enduring, well-built products for meat grinding and processing, food preservation ▪ HBB continu
Slide 23: Weston 2-in-1 Indoor Smoker & Slow Cooker
Weston® 2-in-1 6 Quart Indoor Smoker & Slow Cooker 23
Slide 24: Strategic Initiative: Expand in Home Health & Wellness Market
Strategic Initiative: Expand in Home Health & Wellness Market AIR PURIFICATION WATER FILTRATION HOME MEDICAL PERSONAL CARE Electric countertop Smart Sharps BinTM Oral Care, Air Purifiers and Filters water filtration system Injection Care Facial Cleaning Brush Management System 24 24
Slide 25: Clorox Air Purifiers
Clorox Tabletop True HEPA Air Purifier TA} 80-200sq.ft. 3 2-stage 360° filtration ee 3fan speeds Clorox Medium True HEPA Air Purifier ") 3-stage360°filtration (Re Real-time ar quality monitoring Clorox Large True HEPA Air Purifier =) =) 320-15005q,.Ft. & ? 3-stage 360° filtration (Zz Real-time air q
Slide 26: Water Filtration: Hamilton Beach + Brita Partnership
Water Filtration: Hamilton Beach + Brita Partnership • Water filtration category $873M and growing. Bottled water sales have exceeded $18B. • We have partnered with the #1 Brand in water filtration. • #1 trusted filtration brand • Premium brand with leading equity • Appeals to consumers’ desire for
Slide 27: Health Beacon + Hamilton Beach Brands
Health Beacon + Hamilton Beach Brands Smart Sharps BinTM For Managing Injectible Medications At Home Hamilton Beach Brands • Exclusive marketer and distributor in the U.S. and Canada. • Launched online in Q1 2022 on dedicated DTC site and Amazon. HealthBeacon • Pioneered the world’s first and only F
Slide 28: Strategic Initiative: Lead In Global Commercial Market
Strategic Initiative: Lead In Global Commercial Market Commercial Products Generally Deliver Higher Margins Than Consumer Products In 2021, sales of the Company’s Commercial Products increased 36.3% and accounted for 6.2% of total revenue. This business rebounded strongly in 2021 from pandemic-drive
Slide 29: Expanding Our Commercial Leadership Position
Expanding Our Commercial Leadership Position Investing in Resources to Expand Our Leadership Position in the Global Food Service and Hospitality Markets ▪ We sell to restaurant and hotel chains and independents via distributors, and we are building our distribution capabilities. ▪ Our brand reputati
Slide 30: Commercial Food Preparation Products
Commercial Food Preparation Products Continued strength in the Growing in the Back-of-House Front-of-House Food Prep Products Heated Products Culinary Blending Juicing Mixing Blending 30
Slide 31: Strategic Initiative: Accelerate Digital Transformation
Strategic Initiative: Accelerate Digital Transformation Ecommerce Greatly Expands Distribution and Consumer Education Opportunities BRAND Star Rating ▪ HBB is a leader in ecommerce with a strong presence across multiple platforms globally. Hamilton Beach 4.4 Proctor Silex 4.4 ▪ All 10 HBB brands ear
Slide 32: Strategic Initiative: Leverage Partnerships & Acquisitions
Strategic Initiative: Leverage Partnerships & Acquisitions Acquisition Strategy is A Disciplined Approach – Right Fit at the Right Valuation HBB is actively engaged in the pursuit of additional licensing agreements, partnerships and acquisitions that would drive growth in all of its strategic market
Slide 33: Cash Management
Cash Management FCF Has Been Consistently Positive Due to Relatively Stable Margins, Asset Light Model (notwithstanding working capital timing fluctuations) PRIORITY USES OF CASH ▪ Pay Down Debt ▪ Reinvest in Core Growth ▪ Support Strategic Initiatives – Our Highest Growth and Return Opportunities ▪
Slide 34: Global Infrastructure Is Asset Light
Global Infrastructure Is Asset Light Minneapolis, Minnesota Markham, Ontario Sales Office Belleville, Ontario Canada HQ - Sales and Marketing Distribution Center Geel, Belgium Richmond, Virginia Distribution Center Corporate Headquarters Seattle, Washington All Disciplines Shanghai, China Sales Sale
Slide 35: Summary: Why Invest In HBB?
Summary: Why Invest In HBB? Commitment to Building Long-Term Shareholder Value Experienced Leader Strong Brand Hamilton Beach® Proven Innovator Team in Industry with Portfolio is #1 U.S. Unit Brand 100+ Years of Durable Demand Value to Luxury in B&M and New Products 50+ Categories Ecommerce Relation
Slide 36: Thank You for Your Interest in HBB
Thank You for Your Interest in HBB 36
Hamilton Beach Brands Holding Company — Three Part Advisors Midwest IDEAS Conference 2022 on 6ix