Kennametal Inc. · NYSE:KMT

Kennametal — Q3 FY2022 Earnings Presentation

29 slides from Kennametal's earnings presentation, May 3, 2022

Slide 2: Safe Harbor Statement
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 rel
Slide 3: Results highlight continuing strong execution and operating leverage
Results highlight continuing strong execution and operating leverage Q3 FY22 Overview & Highlights ▪ Improving end-markets & results from growth initiatives driving strong sales: 8% organic growth vs. (1)% prior year • Segment YoY organic growth rates: Infrastructure 12%, Metal Cutting 5% • Regional
Slide 4: Innovation and Commercial Excellence initiatives driving share gain
Innovation and Commercial Excellence initiatives driving share gain Recent Customer Wins Electric Vehicles Renewables Mining Oil & Gas Additive Manufacturing ✓ Secured a major win ✓ Expanding reach ✓ Strengthened ✓ Supported major oil field ✓ Expertise in additive at another Chinese into other wind
Slide 5: Consolidated Q3 FY22 Financial Overview
Consolidated Q3 FY22 Financial Overview Adjusted Reported Change Quarter Ended ($ in millions) from PY Mar 31, 2022 Mar 31, 2021 Mar 31, 2022 Mar 31, 2021 Sales 6% $512 $485 $512 $485 Organic 8% (1)% 8% (1)% FX (4%) 2% (4%) 2% Business Days 2% (1)% 2% (1)% Gross Profit 9% $168 $153 $165 $150 % of sa
Slide 6: Significant EPS improvement driven by strong operating leverage
Significant EPS improvement driven by strong operating leverage Q3 FY22 Adjusted EPS Bridge includes ~$0.03 Simplification/Modernization carryover 5 | © 2022 Kennametal Inc. l All rights reserved.
Slide 7: Improved margins driven by execution of operational initiatives and growth
Improved margins driven by execution of operational initiatives and growth Sales by Geography Sales by End Market Metal Cutting Business Segment AsiaPac 21% Americas Energy 8% General Aerospace 9% 41% Engineering Q3 FY22 Summary 55% EMEA Transportation 38% 28% Q3 FY22 sales $314 million; organic sal
Slide 8: Continuing market recovery and share gain driving improvement
Continuing market recovery and share gain driving improvement Sales by Geography Sales by End Market AsiaPac General Infrastructure Business Segment 22% Engineering 33% Energy 30% Q3 FY22 Summary EMEA 16% Americas Earthworks 62% 37% Q3 FY22 sales $198 million; 12% organic sales growth vs. (3)% decli
Slide 9: Strong balance sheet and cash flow generation allows capital allocation flexibility
Strong balance sheet and cash flow generation allows capital allocation flexibility Total Debt Net Debt Debt Structure & Covenants 700 622 Debt profile 592 598 610 600 • Two $300M notes mature June 2028 & March 2031 522 • $700M revolver matures June 2023 $ Millions 513 496 500 479 (1) • Covenant rat
Slide 10: FY22 Outlook: Delivering strong full year operating leverage and margin improvement
FY22 Outlook: Delivering strong full year operating leverage and margin improvement Q4 outlook range reflects following assumptions: Q4 FY22 Outlook • Continued growth in Aerospace, Energy, Earthworks and General Engineering $510M - $530M o Transportation flat sequentially Sales (~flat to ~3%) • Mar
Slide 11: Despite market disruptions, leveraging modernized footprint to gain share and improve margins
Despite market disruptions, leveraging modernized footprint to gain share and improve margins Looking Ahead: Foundation in place for outperformance End-market outlook • Recent geopolitical, supply chain and COVID-19 related disruptions masking strength of most end markets • Transportation flat but u
Slide 12: Appendix
Appendix
Slide 13: Adjusted Segment Results
Adjusted Segment Results Quarter ended ($ in millions) March 31, 2022 March 31, 2021 Metal Cutting Infrastructure Total Metal Cutting Infrastructure Total Sales $314 $198 $512 $308 $177 $485 Organic 5% 12% 8% 0% (3)% (1)% FX (5)% (1)% (4)% 3% 2% 2% Business Days 2% 1% 2% (1)% (1)% (1)% Constant Curr
Slide 14: Balance Sheet
Balance Sheet ASSETS ($ in millions) March 2022 June 2021 Cash and cash equivalents $100 $154 Accounts receivable, net 312 303 Inventories 562 476 Other current assets 70 72 Total current assets $1,044 $1,005 Property, plant and equipment, net 1,012 1,055 Goodwill and other intangible assets, net 38
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations The information presented by the Company contains certain non-GAAP financial measures including organic sales decline, constant currency regional sales growth (decline), constant currency end market sales growth (decline), adjusted gross profit and margin; adjusted operating
Slide 16: Non-GAAP Reconciliations (cont’d)
Non-GAAP Reconciliations (cont’d) Constant Currency End Market Sales Growth (Decline) Constant currency end market sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) by end market excluding the impacts of acquisitions

Kennametal — Q3 FY2022 Earnings Presentation on 6ix

Kennametal — Q3 FY2022 Earnings Presentation

Slide 1: FY22 Third Quarter Earnings Call Presentation

Slide 2: Safe Harbor Statement

Slide 3: Results highlight continuing strong execution and operating leverage

Slide 4: Innovation and Commercial Excellence initiatives driving share gain

Slide 5: Consolidated Q3 FY22 Financial Overview

Slide 6: Significant EPS improvement driven by strong operating leverage

Slide 7: Improved margins driven by execution of operational initiatives and growth

Slide 8: Continuing market recovery and share gain driving improvement

Slide 9: Strong balance sheet and cash flow generation allows capital allocation flexibility

Slide 10: FY22 Outlook: Delivering strong full year operating leverage and margin improvement

Slide 11: Despite market disruptions, leveraging modernized footprint to gain share and improve margins

Slide 12: Appendix

Slide 13: Adjusted Segment Results

Slide 14: Balance Sheet

Slide 15: Non-GAAP Reconciliations

Slide 16: Non-GAAP Reconciliations (cont’d)

Slide 17: Non-GAAP Reconciliations (cont’d)

Slide 18: Non-GAAP Reconciliations (cont’d)

Slide 19: Non-GAAP Reconciliations (cont’d)

Slide 20: Non-GAAP Reconciliations (cont’d)

Slide 21: Non-GAAP Reconciliations (cont’d)

Slide 22: Non-GAAP Reconciliations (cont’d)

Slide 23: Non-GAAP Reconciliations (cont’d)

Slide 24: Non-GAAP Reconciliations (cont’d)

Slide 25: Non-GAAP Reconciliations (cont’d)

Slide 26: Non-GAAP Reconciliations (cont’d)

Slide 27: Non-GAAP Reconciliations (cont’d)

Slide 28: Non-GAAP Reconciliations (cont’d)

Slide 29: Non-GAAP Reconciliations (cont’d)