Kennametal, Inc. (NYSE:KMT) Q3 2021 Earnings Conference Call May 4, 2021 8:00 AM ET Company Participants Kelly Boyer - VP, IR Chris Rossi - President & CEO Damon Audia - VP & CFO Conference Call Participants Steve Volkmann - Jefferies Julian Mitchell - Barclays Ann Duignan - J.P. Morgan Joel Tiss - BMO Dillon Cumming - Morgan Stanley Steven Fisher - UBS Ross Gilardi - Bank of America Joe Ritchie - Goldman Sachs Ken Newman - KeyBanc Capital Markets Operator Good morning. I would like to welcome everyone to K ...

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: December 31, 2020 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 (Stat ...

Start Time: 08:00 January 1, 0000 9:07 AM ET Kennametal Inc. (NYSE:KMT) Q2 2021 Earnings Conference Call February 02, 2021, 08:00 AM ET Company Participants Chris Rossi - President and CEO Damon Audia - VP and CFO Kelly Boyer - VP of IR Conference Call Participants Steve Volkmann - Jefferies Julian Mitchell - Barclays Ann Duignan - JPMorgan Ross Gilardi - Bank of America Merrill Lynch Walter Liptak - Seaport Global Ronny Scardino - Goldman Sachs Dillon Cumming - Morgan Stanley Adam Uhlman - Cleveland Resear ...

FY21 Second Quarter Earnings Call Presentation February 2, 2021 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 outlook for earnings, sales volumes, cash flow, capital expe ...

Kennametal Inc. (NYSE:KMT) Q1 2021 Earnings Conference Call November 3, 2020 8:00 AM ET Company Participants Kelly Boyer - VP of IR Chris Rossi - President and CEO Damon Audia - VP and CFO Conference Call Participants Stephen Volkmann - Jefferies Julian Mitchell - Barclays Sean McMullen - JPMorgan Adam Uhlman - Cleveland Research Joel Tiss - BMO Capital Markets Ross Gilardi - Bank of America Chris Dankert - Longbow Research Steve Barger - KeyBanc Capital Markets Dillon Cumming - Morgan Stanley Steven Fisher ...

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: September 30, 2020 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 (S ...

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, 2020 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 ...

Financial Performance - Q4 FY20 - Sales decreased, with organic sales declining by 33%[7, 16] - FX had a negative impact of 2%[7, 16] - Divestiture also negatively impacted sales by 2%[7, 16] - Adjusted EBITDA margin decreased by 330 bps to 17.7%[8] - Adjusted EPS was $0.15, compared to $0.84 in the prior year[8] Segment Performance - Q4 FY20 - Infrastructure segment organic sales declined by 29%[7] - WIDIA segment organic sales declined by 32%[7] - Industrial segment organic sales declined by 36%[7] Regional Performance - Q4 FY20 - AsiaPac sales declined by 24%[7] - EMEA sales declined by 34%[7] - Americas sales declined by 39%[7] Strategic Initiatives and Cost Management - The company expects approximately $180 million in total savings from actions already taken or announced[11] - Headcount is down approximately 20%[11] - Capital spending is significantly reduced in FY21 to $110M - $130M[10]

Financial Data and Key Metrics Changes - For Q4, the company reported an organic sales decline of 33% compared to a 2% decline in the prior year quarter, marking the worst quarterly organic decline since the Great Recession in 2008 [23][41] - Adjusted EBITDA margin for the quarter was 17.7%, a decrease of 330 basis points from 21% in the prior year [25][42] - The company reported a GAAP earnings per share loss of $0.11 versus earnings per share of $0.74 in the prior year period [46] Business Line Data and Key Metrics Changes - Industrial sales in Q4 declined 36% organically, with the Americas posting a 40% decline [51] - Widia sales declined 32%, with the largest decline in Asia-Pacific at 41% [56] - Infrastructure organic sales declined 29%, primarily driven by a 47% drop in energy due to falling oil prices [58] Market Data and Key Metrics Changes - All regions reported negative growth, with the Americas declining by 39%, EMEA by 34%, and Asia Pacific by 24% [24] - The decline in demand was broad-based, with significant decreases in transportation and general engineering down 45% and 32% respectively [53] Company Strategy and Development Direction - The company is focusing on simplification and modernization to reduce costs and improve customer service, with six plant closures planned [18][19] - A new strategy combines Industrial and Widia into a single Metal Cutting organization to capture a larger market share [35][36] - The company aims to target a multibillion-dollar segment within Metal Cutting that was previously overlooked, expecting a 40% increase in served market opportunity [36] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of improvement from Q4 to Q1, uncertainty remains due to COVID-19, and they will not provide an annual outlook for fiscal year '21 [26][29] - The company plans to continue aggressive cost control actions to protect margins and liquidity, with capital expenditures significantly reduced to $110 million to $130 million for the full year [30][72] Other Important Information - The company expects to recognize full-year run rate savings from fiscal year '20 actions, bringing total savings to approximately $180 million by fiscal year-end [31] - The adjusted effective tax rate for the quarter was significantly higher at 51.2% due to geographical mix and changes in taxable income [45] Q&A Session Summary Question: Can you clarify the benefits from modernization in '21? - Management confirmed that the benefits from modernization in '21 are not the run rate but will contribute positively [84] Question: How much did temporary cost reductions benefit in '20? - The benefit from temporary cost reductions in FY20 was about $0.40 to $0.45, which will become a headwind in FY21 [85] Question: What is the expected run rate from restructuring in '21? - The restructuring savings will be embedded in the $80 million of simplification and modernization savings [89] Question: What is the decremental margin being managed to? - Decremental margins were in the mid-20s percent, with expectations of traditional decrements in the second half of FY21 [95][98] Question: How will working capital affect cash flow in the first half of FY21? - Working capital is expected to be a modest use of cash in the first half due to reductions in payables and receivables [102] Question: What signals will trigger the transition from temporary cost savings to headwinds? - The transition will be triggered by end market demand; if demand worsens, cost control measures will be maintained [108] Question: What has changed in the Widia strategy? - The strategy now focuses on fit-for-purpose tools, leveraging modernized manufacturing capabilities to meet customer needs [110][116] Question: How does the company view its energy business post-COVID? - The company sees opportunities to grow outside the U.S. and in other mining adjacencies, despite cyclical challenges in the energy sector [141][145]

Financial Data and Key Metrics Changes - Organic sales declined by 17% in Q3 2020 compared to a 3% growth in Q3 2019, marking the third consecutive quarter of double-digit organic declines [19][33] - Adjusted EBITDA margin decreased by 80 basis points year-over-year to 18.6% on revenues that were down almost 20% [23] - Adjusted EPS decreased year-over-year to $0.46 from $0.77 in the prior year quarter, but increased sequentially by $0.31 [24][36] Business Line Data and Key Metrics Changes - Industrial sales declined 17% organically compared to 1% growth in the prior year, with all regions posting year-over-year sales decreases [39] - Widia sales declined 16% organically against positive 3% in the prior year period, with the largest decline in Asia Pacific at 25% [43] - Infrastructure organic sales declined 17% versus positive 6% in the prior year, primarily driven by a 29% decline in the energy sector due to falling oil prices [45] Market Data and Key Metrics Changes - The energy end market faced a year-over-year percentage decline in the mid-20s, expected to be further tested in Q4 due to extreme drops in oil prices [20] - Transportation saw a high teens percentage decline year-over-year, impacted by several auto plant closures globally [21] - By region, all posted double-digit declines, with Asia Pacific experiencing the smallest decline, reflecting easier comparisons [22] Company Strategy and Development Direction - The company is focused on cost control actions while maintaining operational capability and executing strategic initiatives like simplification/modernization [10][18] - The simplification/modernization program is expected to deliver modestly higher savings than the $40 million achieved last year, despite lower volumes [30] - The company is continuing to innovate with new products, such as the HARVI I TE end mill, which has exceeded sales expectations even in current market conditions [28] Management's Comments on Operating Environment and Future Outlook - Management expects Q4 to be more challenging than Q3, with continued cost control actions necessary depending on the economic environment [17] - Preliminary April sales were down approximately 35% year-over-year, indicating severe market headwinds [25] - The company remains confident in its ability to manage through uncertainty and position itself for growth when markets recover [27] Other Important Information - The company pre-emptively drew $500 million on its revolver to maintain a strong liquidity position amid COVID-19 uncertainties [18][49] - Free operating cash flow for Q3 was $2 million, a year-over-year decline of $37 million, with expectations for improvement in Q4 [52] - The company maintains a conservative approach to its dividend program, which remained flat year-over-year at $17 million [54] Q&A Session Summary Question: Trends in end markets or geographies - Management indicated that the Americas are expected to decline more than 35%, while EMEA and Asia Pacific may perform slightly better due to easier year-over-year comparisons [65][66] Question: Profitability and decremental margins - Management confirmed that decremental margins would likely be around historical averages, with ongoing structural cost changes being evaluated [72][78] Question: Raw material impacts - Management expressed confidence in a raw material tailwind for Q4, with expectations for a slight decrease compared to Q3 [85][87] Question: Variable compensation impact - Variable compensation had a meaningful impact but was less than the simplification/modernization benefits reported [90] Question: Long-term demand recovery - Management noted uncertainty regarding the duration of COVID-19's impact on demand but anticipated a potential snap-back recovery once conditions stabilize [94][96] Question: Cost reduction strategies - Management is using furloughs to adjust workforce levels while planning for structural changes if the downturn persists [99][101] Question: Aerospace and oil & gas strategy - Management plans to continue focusing on aerospace for profitable growth and does not foresee major strategic changes in the oil and gas sector despite current market conditions [108][109]