NACCO Industries 8K Results of Operations and Financial Condition | NC 24 Sep 12

Investor Presentation
September 24, 2012

Safe Harbor Statement

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 Securities Exchange Act of 1934.
These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual
results to differ materially from those presented in these forward-looking statements. Such risks and uncertainties
with respect to each subsidiary’s operations are listed in the appendix of this document. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof.

Agenda

1. NACCO Industries Overview and Strategic Objectives

2. NACCO Materials Handling Group Spin-off Transaction Summary and Rationale

3. NACCO Industries Business Overviews

– North American Coal

– Hamilton Beach Brands

– Kitchen Collection

4. NACCO Industries Financial Update

NACCO Industries
Overview and Strategic
Objectives

Post Spin-off NACCO Industries at a
Glance

n NACCO Industries, Inc. (NYSE: NC)

n Operating holding company with subsidiaries in
the mining, small appliances and specialty retail
industries

n Headquartered in Cleveland, Ohio

n LTM 6/30/12 revenue - $813.6 million (1)

n LTM 6/30/12 cash flow from operations - $39.5
million (1)

n LTM 6/30/12 EBITDA - $85.5 million (2)

n LTM 6/30/12 net income - $45.3 million (1)

n 6/30/12 net debt - $4.8 million (2)

NACCO’s strategy is to increase shareholder value by implementing strategic initiatives
designed to achieve long-term profit growth

_____________________

(1) For the period presented, includes the consolidated results of NACCO Industries, Inc. less the results of Hyster-Yale Materials Handling, Inc. For the reconciliation see page 43.

(2) EBITDA and net debt are non-GAAP measures and should not be considered in isolation or as a substitute for GAAP measures. For the discussion of non-GAAP items and the related reconciliations to GAAP measures, see pages starting on 42.

Hyster-Yale Spin-Off Transaction Summary

NACCO Industries, Inc. (“NACCO”) is undertaking a stock spin-off of Hyster-Yale Materials Handling, Inc.
(“Hyster-Yale”)

n Distributing Company……………….......................NACCO Industries, Inc. (NYSE: NC)

n Distributed Company……………....…Hyster-Yale Materials Handling, Inc. (NYSE: HY)

n Distributed Securities…………....…100% of HY Class A and Class B Common Stock

n Distribution Ratio…………..…......One Class A and one Class B share of HY for every

Class A or Class B share of NC

n Record Date………….....................................................................September 25, 2012

n Distribution Date………………………………………………….........September 28, 2012

Spin-Off Rationale

n The spin-off satisfies important business objectives for Hyster-Yale:

– Creates greater flexibility to pursue strategic growth opportunities, such as acquisitions and joint ventures
in the materials handling industry

– Reinforces management’s focus on serving each of Hyster-Yale’s market segments and customer
application needs

– Provides Hyster-Yale with direct access to equity capital markets and greater access to debt capital
markets

– Strengthens the alignment of senior management incentives with the needs and performance of the
Company

– Provides investors with a focused investment option in the materials handling business

What the Spin-off Means for NACCO

n After the spin-off, NACCO will continue to own and operate its other principal
businesses: North American Coal, Hamilton Beach Brands and Kitchen Collection

n NACCO expects to:

– Remain a strong, multi-industry company

– Operate leading businesses in the mining, small appliances and specialty retail industries

– Have clear objectives as well as established profit improvement and growth initiatives that are driving
tangible improvements in operations and results

n Each of NACCO’s subsidiaries is run as a stand-alone business

– Separate, dedicated management teams

– Separate business specific financings, non-recourse to NACCO

– Separate board meetings to ensure appropriate focus for each business

Post Spin-off NACCO Industries Overview

§ Headquartered in Dallas, Texas

§ LTM 6/30/12 revenue - $88.0 million

§ LTM 6/30/12 cash flow from operations -
$33.5 million

§ LTM 6/30/12 EBITDA - $50.8 million (1)

§ Employees - 1,585

§ Headquartered in Richmond, Virginia

§ LTM 6/30/12 revenue - $503.7 million

§ LTM 6/30/12 cash flow from operations -
$22.9 million

§ LTM 6/30/12 EBITDA - $38.0 million (1)

§ Employees - 500

§ Headquartered in Chillicothe, Ohio

§ LTM 6/30/12 revenue - $227.9 million

§ LTM 6/30/12 cash flow from operations -
$1.3 million

§ LTM 6/30/12 EBITDA - $5.3 million (1)

§ Employees - 1,706

_____________________

(1) EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. For the discussion of non-GAAP items and the related reconciliations to GAAP measures, see pages starting on 42.

Post Spin-off NACCO Industries
Overview (continued)

n NACCO expects to continue to enjoy many benefits from its three principal businesses:

– Strong collective earnings and cash flow generation capability

– Lower earnings volatility and enhanced cash flow sustainability

– Significant management expertise in operating each business across a range of economic
conditions

– Substantial overall resource access for growth strategies and objectives

n NACCO intends to continue to pay regular quarterly dividends

Experienced Management Team

Alfred M. Rankin Jr.

Chairman, President and
Chief Executive Officer of
NACCO

§ Chairman, President and CEO of
NACCO Industries since 1994

§ Former Vice Chairman, Chief
Operating Officer and Director of
Eaton Corporation

§ SVP Project
Development and
Administration of
NACoal

§ Joined NACCO in
1995

J.C. Butler, Jr.

SVP Finance,
Treasurer and Chief
Administrative
Officer of NACCO (1)

§ VP, General
Counsel and
Secretary of NACoal

§ Former Jones Day
attorney

§ Joined NACCO in
2009

John Neumann

VP, General
Counsel and
Secretary of
NACCO (1)

Robert Benson

President and
CEO of NACoal

§ President and CEO of
NACoal since 2006

§ Previously COO and
Executive VP

§ Joined NACoal in 1976

Gregory Trepp

President and
CEO of
Hamilton Beach
Brands

§ President and CEO of
Hamilton Beach Brands
since 2009

§ Previously VP of Global
Marketing

§ Joined Hamilton Beach
Brands in 1996

Richard Chene

President of
Kitchen
Collection

§ President of Kitchen
Collection since 2011

§ Previously held senior
merchandising roles at
PETCO, Sears and
Giant Eagle

_____________________

(1) Title effective following completion of the spin-off.

North American Coal
Overview

North American Coal (“NACoal”) Overview

n Mines and markets steam and metallurgical coal for use in power generation and steel
production and provides selected value added mining services for other natural
resource companies

n Open-pit surface mines: North Dakota, Texas, Mississippi, Louisiana and Alabama

n Unique business model with largely long-term cost plus contracts provides strong cash
flow and low volatility with minimal capital investment

n Power plants served are generally well positioned to compete within the current
environmental regulations

n One of the largest producers of lignite coal in the U.S. and among the ten largest coal
producers in the U.S.

– 2.3 billion tons of lignite coal resources with 1.1 billion tons committed to current customers

n Highly efficient equipment utilization rates

n Excellent record of employee safety and environmental responsibility

NACoal Operations

The Coteau
Properties Company
(Freedom Mine)

The Falkirk
Mining Company
(Falkirk Mine)

Camino Real Fuels,
LLC
(Eagle Pass Mine)

The Sabine
Mining Company
(South Hallsville No. 1 Mine)

Liberty Fuels
Company
(Liberty Mine)

Florida Dragline
Operations

Demery Resources
Company
(Five Forks Mine)

Mississippi Lignite
Mining Company
(Red Hills Mine)

Reed
Minerals

Caddo Creek
Resources Company
(Marshall Mine)

Corporate
Office

Under Development

In Operation

NACoal Royalty
Company (1)

_____________________

(1) NACoal Royalty Company receives certain royalty payments from unrelated third parties for production or advance royalty payments for oil, gas and coal located in Ohio, Pennsylvania, North Dakota, Louisiana and Texas.

Project Mines (Unconsolidated)

n Long-term contracts (expiring 2017(1) - 2045) to provide all fuel requirements for adjacent power
plants or customer facilities

n Customers pay all costs plus an agreed management fee or profit per ton delivered; profits
adjusted for inflation

n Contracts minimize exposure to spot coal market price fluctuations

n Active mines: Coteau, Falkirk and Sabine delivered 25.2 million tons in 2011

n Mines in development (expected production
date): Demery Resources (2013), Liberty (2014),
Caddo Creek (2014), and Camino Real (2014)

– Target production of ~8.5 million tons annually

Project mines produce strong cash flow with minimal capital requirements

2011 Tons of Coal Delivered

_____________________

(1) One of the contracts has a term that expires in 2017, but the term may be extended for four additional periods of five years, or until 2037, at NACoal’s option.

Consolidated (Non-Project) Mines

n The Red Hills Mine in Mississippi has a long-term fixed price contract (through 2032) to provide
fuel to a 440 megawatt power plant supplying the Tennessee Valley Authority system

– Delivered 2.9 million tons in 2011

n The recently acquired Reed Minerals(1) business in Alabama provides customer and coal
diversity

– Delivered 0.9 million tons in 2011

– Metallurgical (bituminous) coal is primarily sold to
local coking operations for ultimate use in steel
manufacturing

n Reed Minerals(1) acquisition provides a
foundation to build a metallurgical
coal business

Consolidated (non-project) mines provide an opportunity for higher return when NACoal has capital invested

2011 Tons of Coal Delivered

_____________________

(1) Reed Minerals was acquired in August 2012, therefore the 2011 NACoal financials do not include Reed Minerals.

Value-Added Mining Services

n Fee-based dragline mining services for limerock quarries in southern Florida

– Customers pay all operating costs plus an agreed management fee per cubic yard of limestone produced

– 13.7 million cubic yards delivered in 2011

n Fee-based arrangement to operate a coal drying facility within a power plant operated by a major
coal customer

n Consulting services in India to assist in the setup and management of a customer owned and
operated coal mine

– Customer pays all costs plus an agreed annual management fee

– Also will receive a per ton fee when production begins

n Ongoing royalty income from rights to coal reserves and oil and gas reserves

– Ohio, Pennsylvania, North Dakota, Texas and Louisiana

NACoal provides selected value-added mining services for other natural resource companies

NACoal Key Strategy Overview

n Continue developing new coal mines

– Four new mines under development with ~8.5 million tons in targeted annual production

n Develop a metallurgical coal platform

– Recent Reed Minerals acquisition first step in developing this platform

n Pursue growth in international markets

– Through value-added mining services or exports

n Extend capabilities to aggregates / sand mining

n Pursue a technologically enhanced fuel strategic platform

Our five strategic initiatives for growth

Seek a minimum return on capital employed of 13% on all growth initiatives

Reed Minerals Acquisition Profile

n Acquisition of Reed Minerals businesses
in August 2012 expands NACoal’s surface
mining business into bituminous coal

n Produces steam coal and mid-to-high
volatile metallurgical coal

– Steam coal primarily sold to a local cooperative
association for power generation under an eight-
year contract with a major utility

– Metallurgical coal sold to various customers for
steel production

n More than 10 years of bituminous coal
reserves under contract

– Produced 0.9 million tons in 2011

n Purchase price of approximately $62.5
million on a cash-free, debt-free basis

– 2011 revenue of approximately $86 million

Jasper, AL

NACoal announced the acquisition of Reed Companies on August 31, 2012

NACoal Operational Highlights

(millions of cubic yards)

Tons of Coal Delivered (1)(2)

(millions of tons)

_____________________

(1) During 2009, NACoal completed the sale of certain assets of the Red River Mining Company ("Red River"). The results of Red River were reflected as discontinued operations and are excluded from the table above. Red River delivered 0.7 million, 0.6 million and
0.5 million tons of coal in 2009, 2008 and 2007, respectively.

(2) NACoal’s management fee contract with the San Miguel Mine expired on December 31, 2010. San Miguel Operations delivered 3.4 million, 3.2 million, 3.1 million and 2.9 million tons of coal in 2010, 2009, 2008 and 2007, respectively.

NACoal Financial Highlights

Operating Income

($ in millions)

Net Income

Cash Flow Before Financing (1)

($ in millions)

_____________________

(1) Cash flow before financing activities and return on total capital employed are non-GAAP measures and should not be considered in isolation or as a substitute for GAAP measures. For the discussion of non-GAAP items and the related reconciliations to GAAP
measures, see pages starting on 42.

($ in millions)

Hamilton Beach Brands
Overview

Hamilton Beach Brands (“HBB”) Overview

n Leading designer, marketer and distributor of:

– Small electric household appliances

– Commercial products for restaurants, bars and hotels

n HBB has a leading retail market share position
in North America

– In U.S. & Canada, ranked in top 3 share position in
over 18 product categories

– Strong & growing share in Mexico and Central America

n Powerful heritage brands including Hamilton
Beach and Proctor Silex

– Supporting brands include Melitta (licensed) and
TrueAir

n Broad product assortment distributed through
mass merchants, national department stores,
wholesale distributors and other retail and
commercial sales outlets

Well-recognized Brands

Broad Product Offering

Coffeemakers

Kettles

Toasters

Slow Cookers

Irons

Hand Mixers

Blenders

Toaster Ovens

Can Openers

Comprehensive offering of high-quality consumer housewares

n Strong heritage brands with leading market shares

n Focused emphasis on the quality of our products

n Strong relationships with leading retailers and
customers across diverse channels

n Successful track record of product line
expansion and new product innovation…we call
that Good Thinking®

n Significant economies of scale

n Highly professional and experienced management
team

n Industry-leading working capital management

n Strong returns on invested capital

HBB Business Highlights

HBB Key Strategy Overview

n Lead with innovation in our products

– Invest in deep understanding of consumer and customer needs

– Leverage engineering expertise worldwide to develop innovative solutions that improve everyday living

n Pursue sales and marketing excellence

– Leverage professional and efficient sales and marketing teams, processes and systems

– Build brand equity of our current brands and selectively add brands to gain share

– Enhance placement expertise

– Become a leader in internet sales of consumer housewares

n Build a leadership position in the global commercial business

n Achieve the highest quality and efficiency standards

– Ensure operational excellence while delivering high-quality products

– Continually reduce supply chain costs

n Enhance long-term partnerships with our customers and suppliers

– Deliver best-in-class products, brands and support systems to increase customer importance

n Achieve organizational excellence

– Attract and retain talent to deliver Good Thinking® core competency

n Leverage economies of scale

Achieve a minimum operating profit margin target of 10%

HBB International Opportunity

n Goal is to shift international sales mix to 35%
to 40%

– $100 million international sales → 35% mix

– $150 million international sales → 40% mix

n Actively targeting fast growing Brazil, China
and India markets

– Fastest growing small kitchen appliance
markets in the world

– Using an appropriate mix of brands, products,
features and price points to build business with
key retailers and commercial customers

– Investing in developing solutions tailored to
local consumer tastes and needs

Planned Sales Mix Evolution

Illustrative Example

Recent Product Launches
Support Market Share Gains

Pending Launch in Late 2012

_____________________

(1) 2008 includes goodwill impairment charges of $80.7 million, without which operating income would have been $19.9 million.

HBB Financial Highlights

Operating Income (Loss)

Revenue

($ in millions)

Net Income (Loss)

($ in millions)

(1)

HBB Financial Highlights (continued)

Net Working Capital (1)

Cash Flow Before Financing (1)

Net Working Capital

% Revenue

($ in millions)

Return On Total Capital Employed (1)

($ in millions)

_____________________

(1) Net working capital, cash flow before financing and return on total capital employed are non-GAAP measures and should not be considered in isolation or as a substitute for GAAP measures. For the discussion of non-GAAP items and the related reconciliations to
GAAP measures, see pages starting on 42.

Kitchen Collection
Overview

Kitchen Collection (“KC”) Overview

n National specialty retailer of kitchenware
and gourmet foods

– Operates under the Kitchen Collection® and Le
Gourmet Chef® store names

– Located in outlet and traditional malls throughout
the U.S.

n Outlet mall niche focus differentiates
Kitchen Collection

– Challenging for larger retailers to compete based
on scale and product focus

n Over 320 total stores throughout the U.S.

KC Business Highlights

n Two complementary retail store formats

– Kitchen Collection® → comprehensive selection of all your kitchen needs

– Le Gourmet Chef® → higher end housewares focused on cooking and entertaining

n Widest variety of unique, high quality and affordable products in creative store
environments

n Focused outlet mall footprint with select expansion into traditional malls

n Highly analytical merchandising and disciplined operating controls

n Strategic plan in place led by experienced management team

– Improve store merchandising

– Increase store count focusing on core outlet segment

– Close under-performing stores

– Control costs and discount management

– Expand partnerships with suppliers

n Focus: All your kitchen needs…for less

n Build on solid core stores and close underperforming stores

n Focus on outlets and selectively expand into traditional mall locations

KC Key Strategy Overview

n Focus: Cook, eat, entertain

n Prove new and enhanced format can meet targets

n Phase out high rent stores

n Improve inventory efficiency

n Expand internet channel

n Increase discipline in new store location selection

n Enhance partnerships with our suppliers

n Seek organizational excellence through people and process development

Achieve a minimum operating profit margin target of 5%

KC Operational Highlights

Sales Per Store

Store Count

_____________________

(1) 2008 includes goodwill and other intangible asset impairment charges of $3.9 million, without which operating income would have been ($8.3) million.

(2) Cash flow before financing activities is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. For the discussion of non-GAAP items and the related reconciliations to GAAP measures, see pages starting on 42.

KC Financial Highlights

Operating Income (Loss)

Revenue

Net Income (Loss)

($ in millions)

Cash Flow Before Financing (2)

($ in millions)

(1)

NACCO Industries

Financial Update

Q2 2012 Highlights and Outlook

Q2 2012 Results (1)

NACoal Outlook

n NACoal experienced year-over-year net income growth
due to higher earnings from unconsolidated project mines
and lower operating expenses along with a gain on the
sale of a land asset

n HBB experienced year-over-year improvements in net
income primarily as the result of higher-margin products

n KC continues to perform within expectations despite facing
challenging domestic mass consumer market

n NACoal expects continued solid
operating performance from its existing
mine portfolio for the second half of
2012

n Seeks a minimum return on capital
employed of 13% on all growth
initiatives

($ in millions)

HBB Outlook

KC Outlook

n HBB expects improving volumes in the
U.S. middle-market over time and
continued strength in international and
commercial markets

n Targets a minimum operating profit
margin of 10%

n KC plans to expand its footprint
throughout 2012

n Targets a minimum operating profit
margin of 5%

_____________________

(1) For the period presented, includes the consolidated results of NACCO Industries, Inc. less the results of Hyster-Yale Materials Handling, Inc. For the reconciliation see page 43.

(2) EBITDA is a non-GAAP measure and should not be considered in isolation or as a substitute for GAAP measures. For the discussion of non-GAAP items and the related reconciliations to GAAP measures, see pages starting on 42.

Why Invest in NACCO?

n North American Coal has a unique business model:

– Provides mining services primarily under long-term contracts which largely insulate NACoal from volatile commodity coal
markets, providing stable earnings and cash flow

– Longstanding relationships with high-quality utility customers

– Highly efficient mining capabilities provide customers with low-cost fuel

– Diversification via multiple coal and limerock operations, royalty income and consulting services

n Hamilton Beach Brands is a leading provider of a broad range of consumer housewares:

– Leading retail market share positions in North America

– Powerful, heritage brands that resonate with consumers

– Extensive market access through strong relationships with leading retail customers across diverse channels

– Economies of scale and industry-leading net working capital management drive strong returns on invested capital

n Kitchen Collection is a differentiated, niche market retailer:

– Differentiated in the marketplace through focused outlet mall footprint

– Widest variety of high quality and affordable products

– Highly analytical merchandising and disciplined operating controls

NACCO represents a strong, multi-industry company with leading, well-positioned businesses in mining,
small appliances and specialty retail

NACCO offers strong earnings and cash flow generation capability, with clear growth and profit
improvement strategies and objectives across each business

Appendix

Risk Factors

The risks and uncertainties with respect to each subsidiary’s operations as referenced on page 1 of this document include,
without limitation:

North American Coal: (1) the successful integration of the Reed Minerals acquisition, (2) changes in the demand for and market
prices of metallurgical coal produced in the Reed Minerals mines, (3) changes in tax laws or regulatory requirements, including
changes in power plant emission regulations and health, safety or environmental legislation, (4) changes in costs related to
geological conditions, repairs and maintenance, new equipment and replacement parts, fuel or other similar items, (5) regulatory
actions, changes in mining permit requirements or delays in obtaining mining permits that could affect deliveries to customers, (6)
weather conditions, extended power plant outages or other events that would change the level of customers' coal or limerock
requirements, which would have an adverse effect on results of operations, (7) weather or equipment problems that could affect
deliveries to customers, (8) changes in the power industry that would affect demand for North American Coal's reserves, (9)
changes in the costs to reclaim current North American Coal mining areas, (10) costs to pursue and develop new mining
opportunities, (11) the outcome of legal challenges to the regulatory approvals necessary to construct the Liberty Mine and the
Ratcliffe Plant in Mississippi and (12) increased competition, including consolidation within the industry.

Hamilton Beach Brands: (1) changes in the sales prices, product mix or levels of consumer purchases of small electric appliances,
(2) changes in consumer retail and credit markets, (3) bankruptcy of or loss of major retail customers or suppliers, (4) changes in
costs, including transportation costs, of sourced products, (5) delays in delivery of sourced products, (6) changes in or unavailability
of quality or cost effective suppliers, (7) exchange rate fluctuations, changes in the foreign import tariffs and monetary policies and
other changes in the regulatory climate in the foreign countries in which HBB buys, operates and/or sells products, (8) product
liability, regulatory actions or other litigation, warranty claims or returns of products, (9) customer acceptance of, changes in costs of,
or delays in the development of new products, (10) increased competition, including consolidation within the industry and (11)
changes mandated by federal, state and other regulation, including health, safety or environmental legislation.

Risk Factors (continued)

The risks and uncertainties with respect to each subsidiary’s operations as referenced on page 1 of this document include,
without limitation:

Kitchen Collection: (1) changes in gasoline prices, weather conditions, the level of consumer confidence and disposable income
as a result of the uncertain economy, high unemployment rates or other events or conditions that may adversely affect the number
of customers visiting Kitchen Collection® and Le Gourmet Chef® stores, (2) changes in the sales prices, product mix or levels of
consumer purchases of kitchenware, small electric appliances and gourmet foods, (3) changes in costs, including transportation
costs, of inventory, (4) delays in delivery or the unavailability of inventory, (5) customer acceptance of new products, (6) the
anticipated impact of the opening of new stores, the ability to renegotiate existing leases and effectively and efficiently close
unprofitable stores and (7) increased competition.

NACCO Materials Handling Group / Hyster-Yale (“NMHG”): (1) reduction in demand for lift trucks and related aftermarket parts
and service on a global basis, (2) the ability of NMHG's dealers, suppliers and end-users to obtain financing at reasonable rates, or
at all, as a result of current economic and market conditions, (3) customer acceptance of pricing, (4) delays in delivery or increases
in costs, including transportation costs, of raw materials or sourced products and labor or changes in or unavailability of quality
suppliers, (5) exchange rate fluctuations, changes in foreign import tariffs and monetary policies and other changes in the regulatory
climate in the foreign countries in which NMHG operates and/or sells products, (6) delays in manufacturing and delivery schedules,
(7) bankruptcy of or loss of major dealers, retail customers or suppliers, (8) customer acceptance of, changes in the costs of, or
delays in the development of new products, (9) introduction of new products by, or more favorable product pricing offered by,
NMHG's competitors, (10) product liability or other litigation, warranty claims or returns of products, (11) the effectiveness of the cost
reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, (12)
changes mandated by federal, state and other regulation, including health, safety or environmental legislation and (13) the failure to
complete the spin-off of Hyster-Yale or obtain New York Stock Exchange approval for the listing of Hyster-Yale Materials Handling,
Inc.'s Class A common stock.

Non-GAAP Disclosure

EBITDA, net debt, cash flow before financing activities, return on total capital employed and net working capital are not
measurements under U.S. GAAP, should not be considered in isolation or as a substitute for GAAP measures, and are not
necessarily comparable with similarly titled measures of other companies. NACCO defines each as the following:

n EBITDA is defined as income before income taxes and non-controlling interest (income) expense plus net

interest expense and depreciation, depletion and amortization expense;

n Net debt is defined as total debt less cash and cash equivalents;

n Cash flow before financing activities is defined as net cash from operating activities from continuing operations

plus net cash from investing activities from continuing operations;

n Return on total capital employed is defined as net income before interest expense, after tax divided by LTM

average capital employed. LTM average capital employed is defined as LTM average equity plus LTM average

debt less LTM average cash; and

n Net working capital is defined as accounts receivable plus inventories less accounts payable.

For reconciliations from GAAP measurements to non-GAAP measurements, see pages 43 to 50.