NACCO Industries (NC) Investor presentation summary

Legacy and evolution

• Over 110 years of value creation, evolving from a single-industry coal focus to a diversified natural resources platform with multi-decade customer relationships and conservative financial management.

• Diversification includes contract mining, minerals and royalties, and ecological solutions, each with distinct growth and cash flow characteristics.

• Proven ability to adapt through market cycles and maintain long-term relationships, supporting recurring revenue streams.

Strategic positioning and growth

• Positioned as a diversified natural resource platform with minimal competition, focusing on long-term, higher-return investments.

• Recurring EBITDA from current businesses expected at $50M annually, with new projects signed in 2025 adding $11M in annual EBITDA starting 2026.

• Growth driven by layering new long-term projects onto a recurring base, compounding value over time.

Business model and platforms

• Stable cash generation from utility coal mining, with fee-based models eliminating commodity price risk and supporting predictable cash flows.

• Contract mining segment has expanded locations and draglines, serving top U.S. aggregates producers and large infrastructure projects.

• Minerals and royalties platform has deployed $105M since 2020, with a scalable, disciplined approach and significant undeveloped reserves.

• Ecological solutions segment has grown from 3 to 13 projects since 2019, leveraging reclamation expertise and targeting high-growth markets.