Kennametal, Inc. (NYSE:KMT) Q2 2023 Earnings Conference Call February 7, 2023 8:00 AM ET Company Participants Kelly Boyer - VP, IR Christopher Rossi - President, CEO & Director Patrick Watson - VP & CFO Conference Call Participants Stephen Volkmann - Jefferies Tami Zakaria - JPMorgan Chase & Co. Michael Feniger - Bank of America Merrill Lynch Robert Barger - KeyBanc Capital Markets John Joyner - BMO Capital Markets Operator Good morning. I would like to welcome everyone to Kennametal's Second Quarter Fiscal ...

| --- | --- | --- | --- | --- | |------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|---------| | Strength in End-markets continues | Growth across all end markets \n• Energy end-market demand supported by US-land-only-rig count up ~35%, partially offset by some customer destocking at ...

Financial Performance - Sales for the three months ended September 30, 2022, were $494,792 thousand, an increase of 2.6% compared to $483,509 thousand in the same period of 2021[14] - Gross profit for the same period was $159,968 thousand, slightly down from $160,750 thousand year-over-year[14] - Net income attributable to Kennametal for the three months ended September 30, 2022, was $28,196 thousand, a decrease of 22.1% from $36,198 thousand in 2021[14] - Basic earnings per share decreased to $0.35 from $0.43, reflecting a decline of 18.6% year-over-year[14] - Operating income decreased to $48.5 million from $54.6 million in the prior year, primarily due to higher raw material costs of approximately $17 million and foreign currency exchange headwinds of about $6 million[61] - Earnings per diluted share (EPS) for the current quarter was $0.34, down from $0.43 in the prior year quarter[66] - Total sales for the three months ended September 30, 2022, were $494.8 million, a 2.7% increase from $483.5 million in the prior year[75] Assets and Liabilities - Total assets as of September 30, 2022, were $2,516,208 thousand, down from $2,573,524 thousand as of June 30, 2022[16] - Current liabilities increased to $497,488 thousand from $485,649 thousand in the previous quarter[16] - The company had $79.9 million of borrowings outstanding under its credit agreement as of September 30, 2022, compared to $19.0 million as of June 30, 2022[38] - As of September 30, 2022, total debt was $679.8 million, with $79.9 million of borrowings outstanding and $620.1 million of additional availability under the Credit Agreement[87][90] - Working capital decreased by $25.1 million to $514.0 million as of September 30, 2022, primarily due to increased borrowings of $64.1 million and a decrease in cash and cash equivalents of $21.0 million[97] Cash Flow - Net cash flow used in operating activities was $(10,748) thousand for the three months ended September 30, 2022, compared to $15,803 thousand in the same period of 2021[17] - Cash flow used in operating activities was $10.7 million, compared to cash flow provided of $15.8 million in the prior year[91] - Cash flow used in investing activities was $29.3 million, primarily for capital expenditures related to equipment upgrades[93] - Cash flow provided by financing activities was $23.1 million, including $60.9 million of borrowings under the Credit Agreement[95] Equity and Shareholder Returns - Total equity as of September 30, 2022, was $1,238.345 million, a decrease from $1,364.647 million as of September 30, 2021[48] - Cash dividends paid were $0.20 per share, totaling $(16.276) million for the three months ended September 30, 2022[48] - The company repurchased $19 million of common stock during the quarter, with a total of $105 million repurchased to date under its $200 million program[65] - Shareholders' equity decreased by $51.2 million to $1,201.4 million, mainly due to a comprehensive loss of $49.0 million and stock repurchases of $19.4 million[100] Segment Performance - The Metal Cutting segment reported sales of $299.9 million, while the Infrastructure segment reported sales of $194.9 million for the quarter[55] - Operating income for the Metal Cutting segment was $28.6 million, down from $29.2 million, primarily due to $5 million in higher raw material costs and foreign currency exchange headwinds[78] - Infrastructure operating income decreased to $20.8 million from $26.0 million, impacted by $13 million in higher raw material costs and supply chain disruptions[81] - Organic sales growth for the three months ended September 30, 2022, was 9% for Metal Cutting and 10% for Infrastructure, resulting in a total organic sales growth of 9%[106] Market and Economic Factors - The company experienced a 12% sales growth in the Americas region, while EMEA saw an 11% decline in sales[68] - Constant currency end market sales growth for Aerospace was 25%, while Energy and Earthworks saw growth of 15% and 11%, respectively[108] - Constant currency regional sales growth was 13% in the Americas, while EMEA experienced a decline of 11%[108] Other Financial Metrics - The effective income tax rate for the three months ended September 30, 2022, was 27.5%, slightly up from 27.0% in the same period of 2021[43] - The company recorded net periodic pension income of $(620,000) for the three months ended September 30, 2022, compared to $(4.1 million) for the same period in 2021[32] - The company incurred interest expense of $6,638 thousand for the three months ended September 30, 2022, compared to $6,321 thousand in the same period of 2021[14] - The company recorded a total comprehensive loss attributable to Kennametal shareholders of $(19,050) thousand for the three months ended September 30, 2022, compared to a comprehensive income of $24,104 thousand in 2021[15]

Financial Data and Key Metrics Changes - Sales increased by 9% organically year-over-year, offset by a 7% negative foreign exchange impact, resulting in a total sales increase of 2% [7][20] - Adjusted EPS declined to $0.34 from $0.44 in the prior year quarter, primarily driven by macroeconomic factors [13][24] - Operating expenses as a percentage of sales increased to 21.9%, influenced by annual salary increases and increased travel costs [12][21] Business Line Data and Key Metrics Changes - Metal Cutting sales increased 9% organically year-over-year, with a foreign currency headwind of 8% [27] - Infrastructure organic sales increased by 10% year-over-year, also impacted by a 5% foreign exchange headwind [30] - Aerospace reported strong growth of 25% year-over-year, while general engineering grew 8% [28] Market Data and Key Metrics Changes - The Americas led with double-digit growth, while Asia Pacific faced challenges due to COVID-19 lockdowns in China [8][27] - EMEA sales were negatively affected by disruptions from the Ukraine crisis and the exit from Russia [8][28] - Energy markets showed strong double-digit growth, particularly in the U.S. oil and gas sector [30] Company Strategy and Development Direction - The company is focused on gaining market share through innovative products and operational excellence initiatives [14][46] - There is an emphasis on growth in electric vehicles, aerospace, and digital markets, aligning with megatrends [15][46] - The company plans to supplement organic growth through acquisitions [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges such as high inflation and foreign exchange impacts but expressed confidence in long-term growth drivers [9][46] - The company expects sales for FY 2023 to be between $2 billion and $2.08 billion, with a volume increase of flat to 4% [41] - Management anticipates that supply chain disruptions will continue but expects them to fully abate by the end of the fiscal year [40] Other Important Information - The company repurchased $19 million of shares during the quarter, reflecting confidence in its strategic initiatives [36] - Free operating cash flow was negative $40 million, consistent with typical first-quarter patterns due to seasonal sales [35] Q&A Session Summary Question: Volume and Price Dynamics - Volume was up year-over-year, contributing approximately $4 million to operating income, with a model suggesting a volume increase of around $8 million [51][54] Question: End Market Performance - Aerospace increased, while EMEA weakened slightly due to the Ukraine conflict; general engineering remained steady [55] Question: Supply Chain and Pension Headwinds - Temporary supply chain issues are expected to mitigate by the end of the fiscal year, with specific guidance on pension and FX impacts provided [58][59] Question: Raw Material Costs - Raw material costs are expected to stabilize, but year-over-year headwinds will persist [66] Question: Competition and Pricing Strategy - Pricing strategies are based on value provided to customers, with limits on how much further prices can be increased due to competitive pressures [88][90] Question: Infrastructure Stimulus Impact - The company has not yet seen significant benefits from the infrastructure stimulus package, expecting more impact in fiscal year 2024 [105] Question: Force Majeure Details - The force majeure event affected raw material supply to infrastructure plants, but customer service levels were maintained [107]

FY23 First Quarter Earnings Call Presentation November 1, 2022 Safe Harbor Statement 1 Certain statements in this release may be forward-looking in nature, or "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. Forward-looking statements are statements that do not relate strictly to historical or current facts. For example, statements about Kennametal's outlook for sales, adjusted operating income, FOCF, primary ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number 1-5318 KENNAMETAL INC. (Exact name of registrant as specified in its charter) Pennsylvania 25-0900168 (State or other ju ...

Kennametal Inc. (NYSE:KMT) Q4 2022 Earnings Conference Call August 2, 2022 8:00 AM ET Company Participants Kelly Boyer – Vice President-Investor Relations Chris Rossi – President and Chief Executive Officer Pat Watson – Vice President and Chief Financial Officer Conference Call Participants Steven Volkmann – Jefferies Joe Ritchie – Goldman Sachs Julian Mitchell – Barclays Chris Dankert – Loop Capital Operator Good morning, I would like to welcome everyone to Kennametal’s Fourth Quarter Fiscal 2022 Earnings ...

FY22 Fourth Quarter and Year-end Earnings Call Presentation 0 | © 2021 Kennametal Inc. l All rights reserved. August 2, 2022 Safe Harbor Statement Certain statements in this release may be forward-looking in nature, or "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. Forward-looking statements are statements that do not relate strictly to historical or current facts. For example, statements about Kennametal's ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ☐ 1934 For the transition period from _______ to _______ Commission file number 1-5318 KENNAMETAL INC. (Exact name of registrant as specified in its charter) Pennsylvania 25-0900168 (State o ...

Kennametal Inc. (NYSE:KMT) Q3 2022 Results Earnings Conference Call May 3, 2022 8:00 AM ET Company Participants Kelly Boyer - Vice President, Investor Relations Christopher Rossi - President and Chief Executive Officer Damon Audia - Vice President and Chief Financial Officer Conference Call Participants Steve Volkmann - Jefferies Steven Fisher - UBS Julian Mitchell - Barclays Capital Tami Zakaria - J.P. Morgan Dillon Cumming - Morgan Stanley Operator Good morning and welcome to the Kennametal Third Quarter ...