Hamilton Beach Brands Holding Company · NYSE:HBB
Hamilton Beach Brands — ICR Conference 2025
29 slides from Hamilton Beach Brands's conference presentation, Jan 13, 2025
Slide 1: Investor Presentation ICR Conference 2025
Exhibit 99 Investor Presentation ICR Conference 2025 January 13, 2025
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements The statements contained in this presentation that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These forward-looking statements are made subject to certain
Slide 3: Company Overview
3 Company Overview Markets Served Who We Are • Core Consumer market is North • Hamilton Beach Brands Holding Company America (U.S., Canada, Mexico, • Long tenured company (115 years) Latin America) • A leading designer, marketer and distributor of a wide range of • Increasing share of the Premium br
Slide 4: Investment Highlights
4 Investment Highlights 01 02 03 Leader in large and growing Proven innovator with 115 Strong relationships consumer housewares market, years of industry leading R&D with key customers across all with a powerful portfolio of markets and channels, with a iconic brands leading ecommerce presence 04 05
Slide 5: Powerful Brand Portfolio
5 Luxury Powerful Brand Portfolio Flagship brands Hamilton Beach and Proctor Silex are well known and trusted names that have served consumers for 115 years • Core business provides strong foundation to support newer growth initiatives Premium, Commercial, • Exclusive multiyear trademark licensing H
Slide 6: Broad Product Assortment
6 Broad Product Assortment ® Participates in high demand Hamilton Beach participates Hamilton Beach brand small in 50+ product categories appliances rank in the Top 3 categories like single-serve often offering multiple brands positions for national brands in coffee, blenders, toaster per category 2
Slide 7: Consistent Product Innovation
7 Consistent Product Innovation ® Hamilton Beach’s Good Thinking approach to consumer-driven innovation Goal is to • Gather data/feedback from 25,000+ maximize innovations consumer touchpoints annually with unique consumer • 200+ new product platforms benefits launched over last 5 years • Pipeline o
Slide 8: New Products
8 New Products Proprietary & Confidential
Slide 9: Best-in-Class Customer Relationships
9 Best-in-Class Customer Relationships Products distributed through all key channels Global Health North American Consumer Global Commercial Largest customers for flagship brands
Slide 10: Strategic Growth Initiatives
10 Strategic Growth Initiatives 01. Drive Core Growth 02. Gain Share in the Premium Market Core Premium Leverage Partnerships and 03. Lead in Global Commercial Market Acquisitions Customer Focused Accelerate Digital 04. Accelerate Growth of Hamilton Beach Health Transformation Health Commercial 05.
Slide 11: Strategic Initiative: Drive Core Growth
11 01 Strategic initiative Hamilton Beach is the #1 small kitchen appliance national brand in the U.S. by units sold¹ Drive Core • Proctor Silex brand products feature sleek, practical designs at accessible price points Growth • Growth plans to increase revenue and market share focus on innovative n
Slide 12: Strategic Initiative: Gain Share in Premium Market
12 02 Strategic initiative Gain Share • Some premium brands are owned while others are used under exclusive multiyear trademark licensing in Premium and other agreements Leveraging • U.S. premium market is ~$3.7 billion; HBB share is brands into ~3%, providing significant room for growth¹ new premiu
Slide 13: Premium Brands
—_—_—S ~~ Hamilton Beach ‘PREMIUM COEKTAILE OW BEWANG NUMILK > = PaRrasay]
Slide 14: Strategic Initiative: Lead in Global Commercial Market
14 03 Strategic initiative • Increasing participation in multi-billion-dollar Lead in Global global market with significant upside • Investing in higher margin products for commercial food service/beverages and Commercial hotel amenities • Accounted for 8% of HBB revenue in 2023 Market • Growth plan
Slide 15: Commercial Growth Plans
15 Commercial Growth Plans Regional and global chains expansion • Blending and mixing • Back-of-house food prep Drive growth in Europe, Asia, Africa and India Coffee Numilk commercial machine shops are a prime target
Slide 16: Strategic Initiative: Accelerate Growth of Hamilton Beach Health
16 04 Strategic initiative 2021 2024 Accelerate Acquired HealthBeacon PLC, a Created Hamilton Beach Health brand medical technology firm Growth of • Opportunity driven by demographics, increased chronic medical conditions, need for at-home treatments, technology • Developing healthcare management to
Slide 17: Strategic Initiative: Accelerate Digital Transformation
17 • Best-in-class retailer support driving 05 prominent brand placement on Strategic initiative leading sites • HBB’s strong product reviews and ratings online build brand equity Accelerate HBB has • Growth plans include online content capitalized on Digital consumer investments to drive awareness/
Slide 18: Strategic Initiative: Leverage Partnerships & Acquisitions
18 Identify businesses that fit strategically 06 within the Hamilton Beach portfolio and Strategic initiative leverage Company’s many strengths PARTNERSHIPS Leverage Partnerships & ACQUISITIONS Acquisitions • Pursue additional trademark licensing agreements • Forge strategic alliances
Slide 19: Financial Summary
19 Twelve Months Ending Income Statement Data 9/30/24 12/31/23 12/31/22 Financial Revenue $647,834 $625,625 $640,949 Gross Profit $169,736 $143,676 $129,114 Summary % of Revenue 26.2% 23.0% 20.1% Operating Profit $44,622 $35,081 $38,794 (In thousands) % of Revenue 6.9% 5.6% 6.1% • Strong recovery fr
Slide 20: Revenue Growth Roadmap
20 Revenue Growth Roadmap Fastest growing areas of HBB's Growth driven by business are expected to be: 6 key strategic • Premium • Commercial initiatives • Health In 2024, the Small Kitchen Appliance market in North America is expected to be above 2023 and that trend is expected to continue in 2025
Slide 21: Key Margin Drivers
21 Key Margin Drivers Gross profit margin expansion from mix shift to premium and commercial products 01 SG&A leverage as the business scales 02 HBB 2024 operating profit is expected to increase significantly compared to 2023, 03 due to gross profit margin expansion
Slide 22: Strategic Global Footprint and Asset-Light Business Model
22 Key: Strategic Global Footprint and Corporate HQ Operations Regional HQ Sales rd 3 Party Manufacturers Health Asset-Light Business Model Dublin, Ireland Minneapolis, Markham, Ontario HealthBeacon HQ Canada HQ – Sales Minnesota Sales Office and Marketing Belleville, Ontario Distribution Center Gee
Slide 23: Strong Balance Sheet and Liquidity
23 Strong Balance Sheet and Liquidity Goal is to maintain a $75M net debt Ample liquidity conservative leverage reduction in 2023, to support growth profile not greater than Further reduced in 2024 investments 2.5x-3x
Slide 24: Disciplined Capital Allocation Priorities
24 Disciplined Capital Allocation Priorities Reinvest in Return value to shareholders the business • Maintain competitive dividends • Share repurchases Opportunistically buy back stock • Support organic growth o Repurchased 552,864 shares (TTM 9/30/2024) • Disciplined M&A strategy Paid $6.3M o Goal
Slide 25: Why Invest in HBB - Recap
25 Why Invest in HBB - Recap 01 02 03 Leader in large and growing Proven innovator with 115 Strong relationships consumer housewares market, years of industry leading R&D with key customers across all with a powerful portfolio of markets and channels, with a iconic brands growing ecommerce presence
Slide 26: Thank You
Thank You
Slide 27: Hamilton Beach Brands
——_— = Hamilton Beach BRANDS
Slide 28: Non-GAAP Disclosure
28 As of Net Working Capital 9/30/24 12/31/23 12/31/22 Non-GAAP Trade receivables, net $99,049 $135,434 $115,135 Inventory $164,802 $126,554 $156,038 Disclosure Less: Accounts Payable $128,489 $99,704 $61,759 • Net working capital, net debt and Net Working Capital $135,362 $162,284 $209,414 free cas
Slide 29: Presenters
29 Presenters Scott Sally Tidey Cunningham President and SVP, CFO, Treasurer CEO President and CEO since October Joined company in February 2023, bringing 2024. Previously Senior Vice strong public company experience and track President, Global Sales. Joined record of value creation, digital transfo