Nacco Industries, Inc. · NYSE:NC
Nacco Industries — Investor Presentation (April 2025)
35 slides from Nacco Industries's investor presentation, Apr 9, 2025
Slide 1: Bringing Natural Resources to Life: 2024 Investor Presentation
Bringing Natural Resources to Life 2024 Investor Presentation
Slide 2: Safe Harbor Statement and Disclosure
Safe Harbor Statement and Disclosure ▪ This presentation includes forward-looking statements subject to important risks and uncertainties. It may also contain financial measures that are not in conformance with accounting principles generally accepted in the United States of America (GAAP). ▪ Refer
Slide 3: Company Overview
Company Overview NACCO Industries® brings natural resources to life by delivering aggregates, minerals, reliable fuels and environmental solutions through its robust portfolio of NACCO Natural Resources® businesses
Slide 4: Charting Our Future
Charting Our Future Provides exclusive Manages a growing A leading provider of Provides a range of Developing energy and comprehensive and increasingly specialized mining ecological energy-related projects mining services for diversified portfolio services for restoration services to address increas
Slide 5: Diversified portfolio provides critical inputs for key industries
Diversified portfolio provides critical inputs for key industries…. …where current economic trends… INDUSTRIES SERVED Strong Regional Data Growth and Growth Increasing Electrification Onshoring Electricity Manufacturing Generation Where our businesses Increased demand operate Construction & Developm
Slide 6: Our Fundamental Commitment
Our Fundamental Commitment Safety People Community Environment Safety is our #1 priority, and Employees fuel our success Long-term community Environmental Excellence is at we operate in a culture of and are encouraged to pursue investments make an impact in our core. We are experts in safety excelle
Slide 7: NACCO Industries (NYSE: NC) – At a Glance
NACCO Industries (NYSE: NC) – At a Glance In millions Year Ended December 31 ▪ Priorities for Cash 2024 2023(1) ➢ Invest in projects with high internal As Reported As Reported Adjustments Adjusted rates of return that leverage our competitive strengths to advance Operating profit (loss) $35.7 ($70.1
Slide 8: Coal Mining Segment
North American® COAL Coal Mining Segment
Slide 9: North American Coal
North American Coal We provide comprehensive coal mining services under long-term contracts pursuant to a service-based business model Land Acquisition Reserve Acquisition Load & Haul Reclamation Mining Customer Operations Permitting Coal Handling Bond Release Power Plant Operation Mine Planning & M
Slide 10: Strong & Consistent Cash Flow Generation
Strong & Consistent Cash Flow Generation ▪ Focused on managing coal production costs The Falkirk Mining Company The Coteau Properties Company ➢ Helps customers provide reliable and affordable energy Coyote Creek Mining Company ➢ Benefits customers and NACCO as fuel cost is a significant Mississippi
Slide 11: Mississippi Lignite Mining Company (MLMC)
Mississippi Lignite Mining Company (MLMC) ▪ Exclusive coal provider to the Red Hills Power Plant, which supplies electricity to Tennessee Valley Authority (TVA) ➢ Current contract through Q1 2032 ▪ Contractually determined coal sales price adjusts based on changes in the level of established indices
Slide 12: Coal Mining Outlook
Coal Mining Outlook ▪ Annuity-like earnings from Coteau, Falkirk and Coyote Creek provide steady income and cash flow over the long-term with minimal capital investment ▪ MLMC expected to contribute significant cash flow over remaining 7 years of contract ▪ Current economic trends and an improving r
Slide 13: North American Mining Segment
North American Mining Segment
Slide 14: North American Mining
North American Mining A leading provider of broad range of specialized contract mining services for producers of industrial minerals Customer Operations ▪ Business developed out of our core competencies in coal mining ▪ Precision mining services are integrated into customer operations ▪ Expertise in
Slide 15: North American Mining Expansion
North American Mining Expansion ▪ As of December 31, 2024: ➢ Projects in 7 states and growing ➢ Operate 31 draglines, majority serving Florida aggregates market ▪ Several new contracts to begin production in 2026 NAMining Locations as of 12/31/24 Arizona: starting in 2026 Sawtooth Mining: exclusive
Slide 16: North American Mining Growth Execution
North American Mining Growth Execution ▪ Precision mining expertise allowed us to successfully secure new contracts and extend existing contracts ▪ Poised to benefit from additional revenue streams and economies of scale as new contracts begin delivering consistent income and cash flows in 2026 ▪ Ac
Slide 17: Minerals Management Segment
Minerals Management Segment
Slide 18: Minerals Management's Reserve Locations
Minerals Management’s Reserve Locations ▪ Current portfolio includes mineral and royalty interests in premier U.S. oil and gas producing regions and legacy coal reserves ▪ Total oil and gas mineral and royalty interests included 198,457 gross acres and 63,919 net royalty acres at December 31, 2024 M
Slide 19: Minerals Management Business Model
Minerals Management Business Model ▪ Catapult Mineral Partners manages the growth activity of the Minerals Management Segment ➢ Has constructed a high-quality, diversified portfolio of U.S. oil and gas mineral and royalty interests, with a significant geographic footprint in some of the premier U.S.
Slide 20: Catapult Oil and Gas Portfolio Overview
Catapult Oil and Gas Portfolio Overview Appalachia Gulf Coast Permian Rockies Williston Totals 2024 Gross Acres 34,661 27,932 121,437 13,233 1,194 198,457 2024 Net Royalty Acres 36,199 20,105 4,568 659 2,388 63,919 2024 Production (BOE) 598,847 814,296 207,420 7,754 0 1,628,318 NGL Oil 6% NGL 7% NGL
Slide 21: Executing Growth
Executing Growth ▪ Catapult Mineral Partners is successfully growing and diversifying ▪ Total capital deployed of ~$90 million since 2020 ➢ Acquisitions totaling ~$70 million in mineral and royalty interests augment our legacy assets ➢ Invested $18.5 million in a company that holds non- operated wor
Slide 22: Acquisition Strategy
Acquisition Strategy ▪ Multi-basin, multi-operator expansion and diversification strategy expected to position us to deliver long-term value and generate increasing levels of operating profit and EBITDA, while mitigating risk ▪ Disciplined, data-driven acquisition evaluation process: ➢ Leverages pub
Slide 23: Mitigation Resources
Mitigation” Resources OF NORTH AMERICA Mitigation Resources
Slide 24: Providing Essential Ecological Services
Providing Essential Ecological Services ▪ Business established as natural extension of our legacy mining and award-winning environmental skill set ▪ Ecological restoration services provided: ➢ Develop stream and wetland mitigation solutions ➢ Comprehensive reclamation and restoration construction se
Slide 25: Coverage Continues to Expand
Coverage Continues to Expand Priority Markets 11 mitigation banks plus other reclamation and Headquarters restoration projects as of December 31, 2024 25
Slide 26: Mitigation Resources: Focused on Growth
Mitigation Resources: Focused on Growth ▪ Focused on high-growth markets with substantial upside potential ➢ Expanded into Florida market in early 2024 with Pomona mitigation bank; credit sales expected to commence in 2027 ▪ Expanded scope of business to include reclamation of abandoned mine land fo
Slide 27: ReGen Resources
ReGen Resources
Slide 28: Developing long-term energy & energy related projects
Developing long-term energy & energy related projects ▪ Established in 2023 to address rapidly increasing demand for power generation sources in U.S. ▪ Projects, primarily on reclaimed mining properties, utilize multi-generation technologies, such as solar combined with gas-fired generation ▪ Existi
Slide 29: Why Invest in NACCO?
Why Invest in NACCO? Transformed from business tied almost exclusively to coal mining into a well- diversified portfolio of leading and growing U.S.-based natural resources companies ▪ We are at a pivotal point in our transformation. Strong businesses with long-term business models provide competiti
Slide 30: Financial Results and Non-GAAP Reconciliation
Financial Results and Non-GAAP Reconciliation
Slide 31: Historical Operating Results
Historical Operating Results Coal Mining NAMining Minerals Management Consolidated Operating Profit (in millions) Segment(4) Consolidated 38.3 20 60 52.2 80 70.0 45 60 24.3 35.7 20 40 40 (5) 28.9 20 10 0 5.8 19.4 (30) 20 (20) 2.2 3.3 (40) (55) (60) (80) (71.3) 0 0 (80) (70.1) (1)(2) (1) (1) (1) 2022
Slide 32: Non-GAAP Disclosure
Non-GAAP Disclosure This presentation contains non-GAAP financial measures. Included in this presentation are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP").
Slide 33: Non-GAAP Reconciliation Consolidated Adjusted EBITDA
Non-GAAP Reconciliation Consolidated Adjusted EBITDA ($ in thousands) 2022(1)(2) 2023(1) 2024 Net income (loss) $74,158 ($39,587) $33,741 Long-lived asset impairment charges (1) 3,939 65,887 - Contract termination settlements (2) (30,882) - - Income tax provision (benefit) 13,565 (24,571) (95) Inter
Slide 34: Non-GAAP Reconciliation Segment Adjusted EBITDA
Non-GAAP Reconciliation Segment Adjusted EBITDA ($ in thousands) Minerals Coal Mining NAMining Unallocated Eliminations Consolidated Management 2024 Operating Profit (Loss) $24,311 $5,772 $28,927 ($23,317) $12 $35,705 Depreciation, Depletion and Amortization 9,476 9,811 4,273 1,092 - 24,652 Segment
Slide 35: AY wacco
AY wacco INDUSTRIES | NATURAL RESOURCES North American A y/ North® 7 / Mitigation’ ReGen RORDAMenCalr ( COAL : MU). V/) enna) [TI Resources Catapult RESOURCES
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