Hamilton Beach Brands Holding Company · NYSE:HBB
Hamilton Beach Brands — Baird 2019 Global Consumer, Technology & Services Conference
22 slides from Hamilton Beach Brands's conference presentation, Jun 5, 2019
Slide 1: 2019 Global Consumer, Technology & Services Conference
2019 Global Consumer, Technology & Services Conference Greg Trepp President and CEO Michelle Mosier Vice President, CFO and Treasurer Scott Tidey Senior Vice President, North American Sales and Marketing @rwbaird #BairdCTS
Slide 2: Hamilton Beach Brands Holding Company
HAMILTON BEACH BRANDS HOLDING COMPANY Baird 2019 Global Consumer, Technology & Services Conference
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation and the Q and A to follow may include forward-looking statements subject to important risks and uncertainties. Refer to Hamilton Beach Brands Holding Company’s reports filed on Forms 10-Q and 10-K for information on factors that could cause actual results to d
Slide 4: HBBHC 2018 Revenue - $743M
HBBHC 2018 REVENUE - $743M KC $634M 15% HBB 2018 Revenue 2018 $114M Revenue by KC 2018 Revenue Segment HBBHC: Operating Profit: $32M Net Income: $22M HBB 85% 2018 Revenues of $743.2 million is net of $4.1 million of eliminations (intercompany sales) 3
Slide 5: Strong Cash Flow Provides Financial Flexibility
STRONG CASH FLOW Provides Financial Flexibility $86M PRIORITY USES OF CASH Reinvest in Core Growth Support Strategic Initiatives HBBHC CASH FLOW Pay Down Debt BEFORE FINANCING Return Capital to Shareholders GENERATED OVER Dividends PAST 3 YEARS Share Repurchases Accretive Acquisitions
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS Proven Business Model Drives Results Commitment to Building Long-Term Shareholder Value Experienced Team Focused on Our Customers and Consumers Iconic Brands Serving Consumer and Commercial Markets Globally Comprehensive Product Offering - Value to Luxury Broad Custom
Slide 7: Global Footprint
GLOBAL FOOTPRINT Strategically Located to Serve Customers Markham, Ontario Corporate HQ Operations Canada Sales and Picton, Regional HQ Sales Administration Ontario 3rd Party Manufacturers Minneapolis, Headquarters Distribution Minnesota Center Sales Office Richmond, Virginia Seattle, Corporate Head
Slide 8: Comprehensive Offering
COMPREHENSIVE OFFERING Brands, Price Points, 50+ Categories Luxury PRICE POINT COVERAGE Value Coffee Fondue Set #1 $ rank #50+ $ rank CATEGORY COVERAGE 7
Slide 9: Hamilton Beach Is the #1 Brand
® HAMILTON BEACH IS THE #1 BRAND Hamilton Beach Drives Retailers’ Traffic In Stores and Online % Unit Share – U.S. Small Kitchen Electrics 12.3 8.5 5.6 4.9 4.7 4.4 4.4 4.3 3.5 Hamilton Black + Decker Oster Mr.Coffee Instant Pot Crock Pot Keurig Cuisinart Kitchen Aid Beach Source: NPD POS database, 1
Slide 10: HBB Brands Are Top 3 in 28 Categories
HBB BRANDS ARE TOP 3 IN 28 CATEGORIES Gained Share in 26 Categories in 2018 • Air Fryers • Espresso Maker • Other Waffle Iron/Sandwich • Blending (Traditional) • Food Processor Maker • Blending (Single Serve) • Food Chopper • Pizza Ovens • Other Blending & Processing • Food Steamer • Popcorn Makers
Slide 11: Focus on Innovation
FOCUS ON INNOVATION “Good Thinking” Process Drives New Product Development New Product Platform Introductions 90 87 70 67 58 59 58 53 51 49 50 37 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 HBB generated approximately 30% of its revenue in the last 3 years from products that are less
Slide 12: Growth Objective
GROWTH OBJECTIVE Long-Term Growth Goal (excludes KC): $750 M - $1 B in Revenue and 9% - 10% Operating Profit 11
Slide 13: Only-The-Best
ONLY-THE-BEST Increasing Share in High–End Market with Premium Brands Approximately 1/3 of U.S. Small Kitchen Appliance Industry Dollars 1/3 is in Only-the-Best segment 2014 2015 2016 2017 HBB Only-The-Best Revenue +40% in 2018 12
Slide 14: New in 2019
NEW IN 2019 Wolf Gourmet Stand Mixer 13
Slide 15: Global E-Commerce
GLOBAL E-COMMERCE HBB Products Earn Strong Online Ratings and Reviews Hamilton Beach® was #1 selling Brand Rating Average Star brand in the U.S. e-commerce Wolf Gourmet 4.4 channel in 2018, based on units CHI 4.3 Hamilton Beach Professional 4.1 HBB provides support for Hamilton Beach 4.1 promotion,
Slide 16: Global Commercial
GLOBAL COMMERCIAL Leading Position in the Global Commercial Market Opportunity to accelerate growth in the $18B global commercial market (1) Company’s commercial brand reputation for performance, reliability and differentiated products is driving growth Increasing penetration of products at re
Slide 17: SmartServe Blend-In-Cup
SmartServe™ Blend- In-Cup The First Hands-Free BLIZZARD® Machine Custom Designed for Dairy Queen®
Slide 18: International Markets
INTERNATIONAL MARKETS Significant Opportunity for Emerging Markets Growth Latin America China India Removable High Performance Juicer Mixer Reservoir Iron Blender Grinder 17
Slide 19: New Categories
NEW CATEGORIES SONIC RECHARGEABLE TOOTHBRUSH 18
Slide 20: Strategic Acquisitions
STRATEGIC ACQUISITIONS Accretive – Right Fit at the Right Price TARGET PROFILE VALUE CREATION Opportunity in consumer or Accelerate growth and margins commercial Highly accretive when layered into Competitive market position current business model Potential to enter new product Meet or e
Slide 21: Strategic Partnership
STRATEGIC PARTNERSHIP BARTESIAN | PREMIUM COCKTAILS ON DEMAND™
Slide 22: Hamilton Beach Brands
- a, Hamiulton Beach BRANDS