Company: NC
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0000789933-25-000012
Chunk: 39

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 39
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 and diversify. Among other things, they identify specific future projects, customers and contracts. During 2024, the Project Focus List involved projects concerning: (a) Red Hills Mine and other coal initiatives; (b) North American Mining and other non-coal initiatives, including the development of Sawtooth Mining; (c) Catapult Mineral Partners and other minerals management initiatives; (d) Mitigation Resources and other mitigation banking initiatives; (e) regulatory

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initiatives; and (f) looking at additional new business platforms that could provide additional growth and diversification with acceptable risk adjusted returns. For 2024, the CHC Committee believed that NACCO could reasonably meet certain targets outlined in the 2024 Project Focus List since they were designed to be reasonably achievable with strong management performance.

(4) In December 2023, Mississippi Lignite Mining Company (MLMC), which operates the Red Hills Mine, received notice from its customer related to a boiler issue at the Red Hills power plant that had the potential to result in a reduction in customer demand and therefore have a significant impact on the Company's 2024 results of operations. The company developed a strategy to limit the outage's impact to earnings. The CHC Committee developed the MLMC Performance Factor to measure the success of this strategy. We are not disclosing the target or result of this factor due to its competitively sensitive nature. For 2024, the CHC Committee believed the company could reasonably meet this target since it was designed to be reasonably achievable with strong management performance.

(5) We do not disclose the Special Project Award targets or results due to their competitively sensitive nature. The Special Project Award is calculated based on the present value of new or extended projects (determined based on the present value of the forecasted after-tax cash flow over the life of the project based on the contract terms) against a pre-determined target established by the CHC Committee for the award year. In order to promote business growth, there is no cap on the Special Project Award factor; however, the entire Long-Term Plan award is limited to 200% of target. For 2024, the CHC Committee believed the Company could reasonably meet this target, since it was designed to be reasonably achievable with strong management performance.

(6) We do not disclose the Minerals Management Investment Award targets or results due to their competitively sensitive nature. Similar to the Special Project Award, the Minerals Management Investment Award is calculated based on