Hamilton Beach Brands Holding 8K Full Year 2017 Investor Presentation | HBB 16 Apr 18

EVERYDAY GOOD THINKING

Full Year 2017 Investor Presentation

Exhibit 99

Safe Harbor Statement

This presentation includes forward-looking comments 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 to Hamilton Beach Brands Holding Company’s reports filed on Forms 8-K (current), 10-Q

(quarterly), and 10-K (annual) for information on factors that could cause actual results to differ

materially from information in this presentation and for information reconciling financial measures to

GAAP. Past performance may not be representative of future results.

Guidance noted in the following slides was effective as of the company’s most recent earnings release

and conference call (March 8, 2018). Nothing in this presentation should be construed as reaffirming

or disaffirming such guidance.

This presentation is not an offer to sell or a solicitation of offers to buy any of Hamilton Beach Brands

Holding Company’s securities.

the

Cover:

Wolf

Gourmet

registered

trademark

the

Sub-Zero

Group,

Inc.

CHI

registered

trademark

Farouk

Systems, Inc.

Hamilton Beach Brands Holding Company Snapshot

Hamilton Beach Brands Holding Company (NYSE: HBB)

Hamilton Beach Brands Holding Company (“HBBHC”) is a holding company for two separate businesses:

consumer and commercial small appliances (“Hamilton Beach Brands” or “HBB”) and specialty retail

(“The Kitchen Collection” or “KC”)

Hamilton Beach Brands is a leading global designer, marketer and distributor of branded small

electric household and specialty housewares appliances, as well as commercial products for

restaurants, bars and hotels

The Kitchen Collection is a national specialty retailer of kitchenware in outlet and traditional malls

throughout the U.S.

Headquartered in Glen Allen, Virginia

Approximately 1,600 employees at December 31, 2017

12/31/17 Revenues –

$740.7 million

12/31/17 Net Income -

$17.9 million

12/31/17 Adjusted Income –

$22.6 million

(1)

12/31/17 EBITDA –

$43.5 million

(1)

12/31/17 Net Debt –

$40.4 million

_____________________

(1)

EBITDA and Adjusted Income are non-GAAP measures and should not be considered in isolation or as a substitute for GAAP measures. The discussion of non-GAAP measures and

the related reconciliations to GAAP measures start on page 29.

Proven Business Model Drives Results

#1 Presence in Key Retail and

Commercial Sales Channels

Trusted, Efficient and

Low-Cost Supply Chain

Global

Platform

Experienced Management Team

Strong Performance and

Return on Capital

Iconic

Brands

Consistent,

Market Leading Innovation

The Innovation

Started Over

115 Years Ago!

Iconic Brands and Innovative Products

_____________________

* Wolf Gourmet

is a registered trademark of the Sub-Zero Group, Inc.

** CHI

is a registered trademark of Farouk Systems, Inc.

Trusted

Proven

Reliable

Innovative

CONSUMER

COMMERCIAL

RETAIL

Company Overview

KEY BUSINESS HIGHLIGHTS

Leading designer, marketer and distributor of branded housewares for retail and

commercial applications

Strong brands with leading market share

Hamilton Beach

brand ranked #1 small kitchen appliance brand in U.S.

(based on units) in 2017

Strong HBB share in Canada, Mexico and Central America and focused on

growing in other international markets

Strong relationships with leading retail and e-commerce customers across

diverse channels

100+ year track record of innovation and product line expansion

Broad consumer price point segmentation coverage from value to luxury

Multi-layered growth strategy includes e-commerce leadership, an increase in

premium product offerings, continued international expansion, further penetration

of commercial markets, expansion into adjacent categories and strategic

acquisitions

Highly experienced management team

Strong working capital management and returns on capital

HBBHC

SALES BY

Categories

not

included

NPD

Subscription

Food Steamer

Rice Cooker

Air Purifiers

Fryers

Roaster Oven

Compact Refrigerators

Garment Steamers

Sandwich Maker

Microwave Ovens

(1)

Hand Blender

Single Serve Blending & Processing

Odor Eliminators

Cuisinart

Oster

Bella

Black & Decker

Continental Electric

Dash

KitchenAid

Sunbeam

Toastmaster

Total Product Categories Offered

Consistent Innovation in New Product Development

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

HBB aggregated data from 37,000 consumers in 2017 to introduce new, research-driven products

HBB generated more than 27% of its revenue in the last

3 years from products that are less than 3 years old

_____________________

(1)

Excludes product introductions from The Kitchen Collection and gadget introductions from Weston.

PRODUCT PLATFORM INTRODUCTIONS (1)

SELECT 2018 PRODUCT INTRODUCTIONS

HBB protects its innovations through a

robust patent renewal process

Hamilton Beach

Pressure Cooker

Wolf Gourmet

Precision Griddle

Proctor Silex

Personal Blender

with Glass Jar

Weston

Sous Vide Immersion Circulator

SPECIALTY RETAILERS

DEPARTMENT STORES

WAREHOUSE CLUBS

MASS MARKET RETAILERS

E-COMMERCE RETAILERS

Broad Customer Base Across Diverse Channels

HBB

U.S. SALES

BY CHANNEL

2017

HBB Believes it Has the #1 Unit Share of Small Kitchen

Appliances at the Top 2 U.S. E-Commerce Retailers

HBB Has a Diverse Base of 2,500+ Customers

GROCERY STORES

INDEPENDENT RETAILERS

2,000+ Customer

Accounts

HBB

SALES

BY CUSTOMER

2017

SPORT RETAILERS

Costco

Sam’s Club

PRICESMART

Bodega Aurrera

Family Dollar

Grupo Exito

Walmart

TARGET

JET

JD.COM

Wayfair

TMALL.COM

Amazon

KOHL’S

Liverpool

BED BATH & BEYOND

El Palacio de Hierro

BEST BUY

Macy’s

Bemol

Harrods

FAST SHOP

Sur la table

WILLIAMS-SONOMA

Academy

SPORT + OUTDOORS

Kroger

Wakefern FOOD CORP

H.E.B

Cabela’s

DICK’S

E-Commerce

25%

Other

75%

29%

10%

40%

Customer 1

Customer 2

Customer 3

Customer 4

Customer 5

Customer 6

Customer 7

Customer 8

Customer 9

Customer 10

Other

Global Infrastructure to Support HBB Objectives

Picton, Ontario

Distribution

Center

Strategically located footprint to efficiently serve customers globally

Markham, Ontario

Canada Sales and

Administration

Headquarters

Bentonville,

Arkansas

Sales Office

Richmond, Virginia

Corporate Headquarters

Sales & Marketing

Engineering

Southern Pines, North

Carolina

Service Center for Customer

Returns; Catalog Distribution

Center; Parts Distribution

Center

Mexico City, Mexico

Mexico Sales and

Administrative

Headquarters

Tultitlan, Mexico

Distribution Center

Jundiai, Sao

Paulo, Brazil

Distribution Center

Sao Paulo, Brazil

Brazil Sales and

Administrative

Headquarters

Geel, Belgium

Distribution Center

Shanghai, China

Sales Office, Engineering,

Quality Assurance

Shanghai, China

Distribution Center

Shenzhen, China

Engineering, Quality

Assurance, Operations,

and Distribution Center

Distribution

Sales

Corporate HQ

Sales and Administrative HQ

Miami, Florida

Sales Office

Olive Branch,

Mississippi

Distribution Office

Seattle,

Washington

Sales Office

Minneapolis,

Minnesota

Sales Office

Independence, OH

Sales &

Administration

Tangible Growth Opportunities to Generate Attractive Returns

Long-Term HBB Objectives (excludes KC):

Sales:

Operating Profit Margin:

$750M –

$1B

9% –

10%

Adjacent Categories

E-Commerce leadership

Premium Product Offerings

Commercial Product Line Expansion

Strategic Acquisitions

International Market Growth

RECENT ONLINE REVIEWS

Success in Growing E-Commerce Channel

GLOBAL E-COMMERCE FOOTPRINT

Online sales of housewares is the fastest growing segment and

accounted for 25% of HBB U.S. sales in 2017

Consumers are more discriminating of products due to their ability to

research products online

Consumers are increasingly focused on reviews which take into

account brand reputation, product performance and safety

These habits play into HBB’s favor given the positive information

available on HBB’s products online

E-commerce rewards brands, innovation and product quality above and

beyond traditional brick-and-mortar retail and HBB is leveraging its

strengths in these areas to execute its online growth strategy

Continue to drive sales and capture market share with the top

global online retailers

Deliver best-in-class communication and promotional strategies

to drive conversion

Excel in direct fulfillment business model

Expand brands into new categories to drive incremental sales

Consistently identify / evaluate new online participants to ensure

maximum channel presence

_____________________

Source: Intelligent Eye, which compiled reviews from amazon.com, walmart.com and target.com during 2017.

The Hamilton Beach

brand

is the #1 selling small

appliance brand in the U.S.

E-Commerce channel

_____________________

(1)

NPD

point

sales

data

for

the

month

period

ending

December

2017

Brand

Rating

Total Reviews

4.1

252,588

4.0

26,653

Rowenta

4.0

16,521

Cuisinart

4.0

109,157

Oster

4.0

53,217

Magic Bullet

3.9

6,558

Mr. Coffee

3.8

58,704

Black & Decker

3.8

86,335

Delonghi

3.7

12,091

Bella

3.7

17,086

2017 Average Star

(1)

Multi-Initiative Marketing Strategy

HBB delivers over 3.6 billion brand touchpoints annually through its marketing strategy

Advertising

Brand Websites

E-mail Marketing

Influencer Marketing

Everyday

Good Thinking Blog

Facebook

Twitter

Instagram

YouTube

Web visits

16,500+ followers

543,000+ followers

18,300+ followers

11,000 followers

2,000 subscribers

Premium Product Market Opportunity

Well-positioned to grow in the premium market

Leverage brand strength, engineering, design capabilities and commercial expertise to expand premium product offering

Expansion

Hamilton

Beach

Professional

and

Weston

brand

product

lines

Robust

roadmap

new

product

introductions

from

Wolf

Gourmet

through

multi-year

agreement

with

Sub-Zero

Group, Inc.

–

Wolf

premium

brand

with

reputation

innovation

and

quality

designed

create

the

ultimate

cooking

experience

Introduction

CHI

branded

garment

care

line,

through

multi-year

licensing

deal

with

Farouk

Systems,

Inc.

–

CHI

high-quality

hair

products

brand

with

products

that

reflect

education,

the

environment

and

innovation

Expand placements and share in the “Only-the-Best” high-end market with strong brands and product lines

United

States

77%

International

23%

Asia-Pacific

45%

Europe

21%

North

America

24%

Rest of

World

10%

Expand internationally in the emerging Asia and Latin

America markets and continue to expand in Canada and

Mexico

Target to increase HBB international sales to 35% to 45%

of total HBB sales by concentrating on key growth

markets, including China and Brazil

Flexible entry model includes establishing a local

team and then working through distributors or

directly with retailers or e-commerce partners

Provides an opportunity to grow with existing

customers as they expand into new markets

Invest in resources to identify local consumer needs /

preferences through consumer research / feedback and

introduce new products for specific markets

Leverage strength of brands and innovative products to

expand in new geographies

Commercial division has been present in global markets

for decades, providing a strong platform to build upon

Selective licensing of HBB brands with high-quality

partners in eight countries

International Market Opportunity

_____________________

(1) Source:

Euromonitor

International.

SMALL

APPLIANCES

RETAIL SALES

BY REGION

2017

(1)

Significant expansion opportunity for international growth

HBB

GEOGRAPHIC

SALES MIX

2017

Commercial Market Opportunity

Opportunity

accelerate

growth

the

$18

billion

global

commercial

market

(1)

Food service markets benefiting from changing demographics and shift to healthier food options

Increase in onsite food preparation driving demand for commercial appliances

Company’s commercial brand reputation for performance, reliability and differentiated products driving growth

Investing to understand customers’ unmet needs for unique solutions to build a competitive advantage

Opportunity to accelerate growth through the introduction of new product capabilities and categories

Continuing to build distribution capabilities and investing resources to establish presence in international food service market

Increasing penetration of products at global and regional chains

Commercial grade, innovative features, strong

performance and heavy-duty durability

Dependable value, commercially rated, strong

performance and durability

_____________________

(1)

Company estimate.

Expand into New Small Appliance and Adjacent Categories

Pursuing opportunities to grow outside of the small kitchen appliance category

Significant opportunity to expand outside the small kitchen appliances category

Leverage existing infrastructure and channels to introduce adjacent products

E-commerce channel enhances ability to successfully add new products

Introducing new products in both consumer and commercial markets

Compact

Refrigerators

Coffee Airpots

Kitchen Scales

Commercial

Chamber Sealers

Laundry

Acquisition Growth Strategy

Large, global housewares market that is highly fragmented

Competitive market position that gives HBB potential to

increase share / enter new product categories

Opportunity in current consumer space, new consumer

categories or commercial

Strong brand and / or channel presence

International presence / focus with differentiated customer base

E-commerce expands acquisition opportunities, as the platform

makes it easier to present new products

Accelerate growth and margins

Highly-accretive when layered into current business model

Meet or exceed return on capital targets

“We are thrilled to welcome the Weston team and their

consumers and vendors to the Hamilton Beach Brands family. Through

the combination of the highly talented Weston organization, along with

our own dedicated employees, we believe we can achieve significant

opportunities for future growth and profitability in line with our strategic

initiatives”

Greg Trepp

Product expansion opportunity within existing product categories and beyond HBB’s small kitchen and

commercial appliance business

ATTRACTIVE MARKETS

TARGET PROFILE

VALUE CREATION

Value Drivers for HBB

—

Incremental access to new consumer

markets such as outdoor enthusiast

and farm-to-table and also retail

channels such as sporting goods

—

Expands distribution capabilities for

existing HBB brands

December 2014

The Kitchen Collection Strategy

210 stores as of December 31, 2017 strategically located primarily in outlet malls across the U.S.

Meet the challenge of a difficult environment and evolve aggressively in a

constructive manner, focusing on the outlet mall segment

Outlet malls have a sustainable presence and Kitchen Collection is the leading

housewares player in outlet malls

Optimize store portfolio with stores in strong outlet malls in well-positioned

locations and exit stores that do not generate acceptable returns

Average lease duration expected to be 12 months or less for 70% of stores by

the end of 2018

Focus on comparable store sales growth through:

Enhancing customers’ store experience through improved customer

interactions to generate greater average sales transaction size

Working to enhance sales volume and profitability by improving sale closure

rates through continued refinement of product offerings, merchandise mix and

store displays and appearances

Continued focus on gross margin, profit and cash flow improvement areas

Emphasis on increasing sales of higher-margin products

Maintain inventory efficiency and store inventory controls

Ongoing merchandising improvements through use of highly analytical

merchandising skills and disciplined operating controls

Consolidated Financial Overview

REVENUE

Historical Financial Highlights

($ in millions)

$621.0

$605.2

$615.1

2015

2016

2017

EBITDA

$38.0

$46.9

$45.4

2015

2016

2017

$151.0

$144.4

$128.5

2015

2016

2017

_____________________

(1)

EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. The discussion of non-GAAP measures and the related reconciliations to GAAP measures starts on page 29.

(2)

HBBHC financials, net of eliminations.

($ in millions)

$767.9

$745.4

$740.7

2015

2016

2017

$40.3

$48.8

$43.5

2015

2016

2017

% of Revenue: 6.1% 7.7% 7.4%

% of Revenue: 1.1% 1.3% (1.5)%

% of Revenue: 5.2% 6.5% 5.9%

(2)

$1.6

$1.9

$(1.9)

2015

2016

2017

(1)

Capital Structure and Return on Capital

FLEXIBLE CAPITAL STRUCTURE (HBBHC)

19.1%

30.5%

29.7%

2015

2016

2017

ADJUSTED ROTCE (HBB)

_____________________

(1)

Adjusted income, EBITDA, Net Debt, Adjusted Consolidated Equity, and Adjusted ROTCE are non-GAAP measures and should not be considered in isolation or as a substitute for GAAP measures. The discussion of non-GAAP measures and the related

reconciliations to GAAP measures start on page 29. These non-GAAP measures have been adjusted to exclude the impact of the 2017 U.S. tax reform legislation.

(1)

(2)

(3)

(In millions)

2015

2016

2017

Net Income

$19.7

$26.2

$17.9

Adjusted Income

(1)

$19.7

$26.2

$22.6

EBITDA

(1)

$40.3

$48.8

$43.5

Cash and Cash Equivalents

$16.8

$11.3

$10.9

Consolidated Debt

$58.4

$38.7

$51.3

Net Debt

(1)

$41.6

$27.4

$40.4

Consolidated Debt / EBITDA

1.4x

0.8x

1.2x

Net Debt / EBITDA

1.0x

0.6x

0.9x

Adjusted Consolidated Equity

(1)

$82.9

$65.1

$51.1

Debt to Total Capitalization

41.3%

37.3%

50.1%

Company Outlook

KC OUTLOOK

HBB OUTLOOK

U.S. consumer retail market for small kitchen appliances grew modestly in

2017 and is expected to grow modestly in 2018 compared with 2017.

International and commercial markets are expected to continue to grow

modestly.

HBB will continue to focus on strengthening its market position with new

products across various categories and brands; HBB’s revenues and

operating profit expected to increase moderately in 2018 compared with

2017. Increased revenue benefits expected to be partly offset by product

cost inflation. 2018 net income expected to increase substantially as a result

of lower effective corporate income tax rate.

Longer term, HBB will continue to focus on improving return on sales

through scale derived from market growth and strategic initiatives

Declining consumer traffic to physical retail locations and reduced in-store

transactions are reducing KC’s target consumers’ spending on housewares

in mall locations

KC 2018 revenues expected to decrease compared with 2017, as it

continues to prudently close non-performing stores. 2018 operating and net

loss expected to be comparable to 2017. Net losses in the first half of 2018

expected to be higher than in prior year and second half of 2018 as a

smaller tax benefit will be realized on the seasonally higher first half

losses due to a lower effective income tax rate under new Tax Act.

Going forward, KC will aggressively manage its store portfolio with a focus

on a defined profitable product line at favorable mall locations; KC has a

goal for average lease duration to be 12 months or less for 70% of stores by

the end of 2018

Key Investment Highlights

Multi-Layered Growth Strategy

Increase in Premium Product Offerings

Continued International Expansion

Further Penetration of Commercial Markets

Expansion into Adjacent Markets

Complete Accretive Acquisitions

Business Growth will Drive Further Economies of Scale

Strong Core Business Model

Leading Global Market Share in Branded Housewares

Strong Cash Flows and ROTCE

Global Sourcing and Distribution Platform

Broad Customer Base

Comprehensive Product Offering

Experienced Management Team

Iconic Brands Known Globally

Leading Provider to the Growing E-Commerce Market

E-Commerce Leadership

Appendix

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").

EBITDA is a measure of net income (loss) that differs from financial results measured in

accordance with GAAP.

EBITDA, net debt and adjusted return on capital employed in this presentation are provided solely as

supplemental non-GAAP disclosures of operating results.

Management believes these non-GAAP financial measures assist

investors in understanding the results of operations of Hamilton Beach Brands Holding Company and its subsidiaries. In addition,

management evaluates results using these non-GAAP financial measures.

Hamilton

Beach

Brands

Holding

Company

defines

non-GAAP

measures

follows:

EBITDA

defined

net

income

(loss)

before

income

taxes

plus

net

interest

expense

and

depreciation

and

amortization

expense;

Debt

Total

Capitalization

defined

consolidated

debt

divided

consolidated

debt

plus

consolidated

equity;

Net

debt

defined

total

debt

less

cash

and

cash

equivalents;

and

Adjusted

return

capital

employed

defined

net

income

(loss),

excluding

the

effect

the

2017

U.S.

tax

reform

legislation,

before

interest

expense,

after

tax

divided

LTM

average

capital

employed.

LTM

average

capital

employed

defined

LTM

average

equity

plus

LTM

average

debt

less

LTM

average

cash.

For reconciliations from GAAP measurements to non-GAAP measurements see pages 30 to 32.

Non-GAAP EBITDA Reconciliation

($ in millions)

Note: EBITDA is provided solely as a supplemental disclosure. EBITDA does not represent net income, as defined by U.S. GAAP and should not be considered as a substitute for net income, or

as an indicator of operating performance. The Company defines EBITDA as income (loss) before income tax provision (benefit), plus net interest expense and depreciation and amortization

expense. EBITDA is not a measurement under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies.

(1)

__________________

(1)

HBBHC financials, net of eliminations.

HBBHC Equity, Net Income and Capitalization Reconciliation

($ in millions)

EQUITY (HBBHC)

NET INCOME (HBBHC)

(1)(2)

_____________________

(1)

Adjusted consolidated equity and Adjusted Income are provided solely as a supplemental disclosure. Adjusted consolidated equity and Adjusted income do not represent stockholders' equity and net income, as defined by U.S.

GAAP and should not be considered as a substitute for total stockholders' equity and net income, respectively. The Company defines Adjusted consolidated equity as total stockholders' equity excluding the impact of the 2017 U.S.

tax reform legislation. The Company defines Adjusted Income as net income excluding the impact of the 2017 U.S. tax reform legislation.

(2)

HBBHC financials, net of eliminations

CAPITALIZATION (HBBHC)

(1)(2)

(2)

2015

2016

2017

Consolidated Equity, as reported

$82.9

$65.1

$46.4

U.S. Tax Reform Impact

4.7

Adjusted Consolidated Equity

$82.9

$65.1

$51.1

2015

2016

2017

Net Income, as reported

$19.7

$26.2

$17.9

U.S. Tax Reform Impact

4.7

Adjusted Income

$19.7

$26.2

$22.6

2015

2016

2017

Consolidated Debt

$58.4

$38.7

$51.3

Adjusted Consolidated Equity

(1)

82.9

65.1

51.1

Total Capitalization

$141.3

$103.8

$102.4

Debt to Total Capitalization

41.3%

37.3%

50.1%

HBB ROTCE and Net Income Reconciliation

($ in millions)

ADJUSTED ROTCE (HBB)

(1)

____________________

(1)

Adjusted return on capital employed is provided solely as a supplemental disclosure with respect to income generation, adjusted for the impact of the 2017 U.S. tax reform legislation, because management believes it provides

useful information with respect to earnings in a form that is comparable to the Company’s cost of capital employed, which includes both equity and debt securities, net of cash. Return on capital employed is a non-GAAP measure

and should not be considered in isolation or as a substitute for a GAAP measure.

(2)

Tax rate of 38% represents the Company’s target marginal tax rate.

(3)

HBB Adjusted Income is provided solely as a supplemental disclosure. HBB Adjusted income does not represent HBB net income, as defined by U.S. GAAP and should not be considered as a substitute for HBB net income. The

Company defines HBB Adjusted Income as HBB net income excluding the HBB impact of the 2017 U.S. tax reform legislation.

NET INCOME (HBB)

(3)

2015

2016

2017

HBB Net Income, as reported

$19.7

$26.6

$21.1

U.S. Tax Reform Impact

4.1

HBB Adjusted Income

$19.7

$26.6

$25.2

2015

Average Equity (12/31/2014 and each of 2015's quarter ends)

$51.5

Average Debt (12/31/2014 and each of 2015's quarter ends)

58.9

Average Cash (12/31/2014 and each of 2015's quarter ends)

(1.4)

Total 2015 average capital employed

$109.0

2015 Net Income, as reported

19.7

Plus: 2015 Interest expense, net

1.8

Less: Income taxes on 2015 interest expense at 38%

(2)

(0.7)

Actual return on capital employed = actual net income before interest expense, net, after tax

20.8

Actual return on capital employed percentage

19.1%

2016

Average Equity (12/31/2015 and each of 2016's quarter ends)

$52.0

Average Debt (12/31/2015 and each of 2016's quarter ends)

40.2

Average Cash (12/31/2015 and each of 2016's quarter ends)

(2.6)

Total 2016 average capital employed

$89.5

2016 Net Income, as reported

26.6

Plus: 2016 Interest expense, net

1.2

Less: Income taxes on 2016 interest expense at 38%

(0.5)

Actual return on capital employed = actual net income before interest expense, net, after tax

27.3

Actual return on capital employed percentage

30.5%

2017

Average Adjusted Equity (12/31/2017, 9/30/2017, 6/30/2017, 3/31/17, 12/31/16)

$38.6

Average Debt (12/31/2017, 9/30/2017, 6/30/2017, 3/31/17, 12/31/16)

52.9

Average Cash (12/31/2017, 9/30/2017, 6/30/2017, 3/31/17, 12/31/16)

(3.2)

Total 2017 average capital employed

$88.3

2017 Adjusted Income

25.2

Plus: 2017 Interest expense, net

1.6

Less: Income taxes on 2017 interest expense at 38%

(2)

(0.6)

Actual return on capital employed = actual adjusted income before interest expense, net, after tax

26.2

Actual return on capital employed percentage

29.7%

(2)

Hamilton Beach Brands Holding (HBB) 8-KFull Year 2017 Investor Presentation