Company: NC
Filing Date: 2025-04-07
Form Type: ARS
Source: 0000789933-25-000013
Chunk: 7

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-07
Form: ARS
Chunk 7
---
- then-harvest” model. Multi-year projects deliver profits and cash flows throughout their life, without the need for significant ongoing capital investment. These sources of steady and recurring future cash flow, combined with significant recurring cash flows from our legacy businesses, are expected to produce a compounding effect on income and cash flows for years to Below, an employee at the Falkirk Mine works to maintain and keep equipment in optimal condition (left) and a truck gets loaded at the Freedom Mine during the early morning hours (right). Above, an employee conducts an inspection of a haul truck in North Dakota. 5ANNUAL REPORT

come. Each of our newer businesses identify several long-term opportunities each year, providing us with many avenues to accelerate growth. As these newer businesses mature, we see substantial opportunities to scale operations and expand our footprint. Our focus on disciplined growth and operational excellence positions us to deliver improved operating profit and EBITDA, while generating increasing returns on our invested capital. We are building these businesses with a long-term perspective, emphasizing strategic expansion and diversification where we can leverage our core capabilities and deep operational experience. The long-term nature of our business model provides us with increased confidence in the Company’s future. Our coal mining contracts are measured in decades, and North American Mining's customer relationships span multiple years, at times exceeding a decade. As proof, we have served coal-fired power plants in North Dakota since 1978 and 1983, and have continuously provided mining services for a leading aggregates producer in Florida since 1995. Similarly, Catapult creates sustainable income streams in our Minerals Management portfolio through investments in a diverse pool of mineral interests, including reserves tied to producing wells and others held for future development. Income from these investments will span decades. A typical Mitigation Resources mitigation bank will produce attractive income over roughly a 10-year period as credits become available, supplemented with income from other shorter- term projects. In addition, we established ReGen Resources to advance utility-scale, energy- generation projects that are expected to generate high returns upon completion, including long-term projects in Mississippi, Pennsylvania and Texas. While existing long-term contracts and investments in each of our businesses provide clear visibility into future performance, we remain focused on securing new opportunities to further accelerate future growth. You will find more information about each Above, haul truck drivers prepare for their shift at the Freedom Mine, where we have been delivering coal since 1983. Below, a North American Mining dragline operates in Florida (left), while a surface miner works in Nebraska (