#NACCO - Subsidiary Companies

Successful, Proven Outlet Mall Format

• Proven Kitchen Collection store format has helped Kitchen Collection become the leading specialty retailer of kitchen and related products in outlet malls
• Focus on wide variety of specialty kitchenware delivers above-average margins
• As of December 31, 2014, Kitchen Collection had a total of 248 stores

Traditional Mall Format

• Stores located in traditional malls focus on a wide range of nationally-branded specialty housewares
• 70 traditional mall stores are operating as of December 31, 2014

Continuous Improvement

• Kitchen Collection has developed specific approaches over time to improve the three main retail performance drivers
  • Number of customer visits
  • Percentage of visitors who purchase
  • Average dollar amount of sales
• Kitchen Collection continually tests and implements new approaches to further improve these key drivers

Disciplined Overhead Management

• Headquarters staff provides merchandising expertise, accounting, information systems and oversight with a focus on maintaining a low cost culture
• Small number of full-time employees at store level

Leading Brand Names

• Top brands sold by Kitchen Collection include Hamilton Beach . Proctor Silex . Kitchen Aid, OXO, Cuisinart, Keurig, Wilton, Henckels and Wusthof

Efficient Supply Chain

• Kitchen Collection manages its own efficient distribution center in Ohio
• Many high-volume products ship directly to store locations from U.S.-based vendors