Kennametal Inc. · NYSE:KMT

Kennametal — Kennametal India — Shareholder Meeting (November 2014)

24 slides from Kennametal's shareholder meeting presentation, Nov 4, 2014

Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: Global Leader In Tooling & Wear-Resistant Solutions
Global Leader Global Leader In Tooling & Wear-Resistant Solutions Our Mission: Kennametal delivers productivity to customers seeking peak performance in demanding environments by providing innovative custom and standard wear- resistant solutions General Energy & Aerospace Transportation Earthworks E
Slide 5: Two Well-Defined Businesses Delivering Our Mission
Two Well-Defined Businesses Delivering Our Mission Hard Metal & Hard Metal Products INDUSTRIAL BUSINESS Metalworking Solutions and Services Kennametal Tooling WIDIA Product Group Metalworking Services INFRASTRUCTURE BUSINESS Engineered Products, Precision Surface Management and Life Extension Soluti
Slide 6: Specific to India Machine Tools
Specific to India Machine Tools Proprietary and Confidential l 6
Slide 8: FY14 Review: Economic Environment
FY 14 Review : Economic Environment • Business Confidence - Cautious and low, started improving towards end of 4th Quarter • Interest Rates – Interest rates remained high and liquidity crunch continued • Government policies – Policy indecision – Uncertainty and delays • Exchange rate – Rupee volatil
Slide 9: Served Markets Impacting our Business
Served Markets Impacting our Business • Automotive production decline – In specific HCV/CV/LCV • Passenger Vehicles and 2W. • Steel Production – Flat and recovery observed towards 4th Quarter • Capital tooling machinery decline by 22% • Aerospace, Tractor, Defense & Railways © 2014 Kennametal Inc. l
Slide 10: Indian IIP and KIL Sales Development trend
Indian IIP and KIL Sales Development trend Source : MOSPI (In %age Growth) IIP Growth %age KIL Sales %age Growth Vs PY 36% 40.0% 30.0% 22% Growth %age 20.0% 11% 11% 8.2% 10.0% 5.3% 2.9% 1.1% -0.1% 0.0% FY10 FY11 FY12 FY13 FY14 -10.0% -13% -20.0% Fiscal Period IIP Growth %age KIL Sales %age Growth Vs
Slide 11: HCV/CV affected us the most
HCV/ CV affected us the most (-25.3%) (-19.2%) (-21.0%) M&HCV – Medium & Heavy Commercial Vehicles CV – Commercial Vehicles Source: SIAM Tooling consumption is high in this segment, so also our dependency © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 11
Slide 13: Key Performance Indicators – FY14
Key Performance Indicators – FY14 (₹ Mn) • Growth driven by Hard Metals/ consumables business . Consumables up by 14% and MSG up by 1.8% • Adjusted the manpower capacity in line with market demand • Profitability improvement driven by :  Better volumes  Efficient RM sourcing  Reduction of power c
Slide 14: Financial Results & Trends
Financial Results & Trends Sales (₹ Mn) Revenue Break-up – FY14 Working Capital % to Sales  Sales grew 10% CAGR in last five years  Strong Working Capital Management :  AR aging >60 days improves from 18% to 16%  Traded inventory reduced by 50% vs PY  Overall Working Capital up due increase in
Slide 16: Goal: Become a More Diversified Industry Leader
Goal • Become a More Diversified Industry Leader • Balanced Business • Diversified end markets • Growing Industrial as well as the Infrastructure side of the product portfolio © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 16
Slide 17: Acquisition of Tungsten Materials Business from ATI
Acquisition of Tungsten Materials Business from Allegheny Technologies Inc. (ATI) © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 17
Slide 18: Acquisition Advances Strategic Priorities
Acquisition Advances Strategic Priorities Industrial Infrastructure • Kennametal • Engineered Metalworking Components • Metalworking Services • Surface Technologies • WIDIA Product Group • Metallurgical – Recent Emura Acquisition Tungsten Materials Business Aligns With Strategies And End Market Segm
Slide 19: Stellram is part of TMB with end markets
Stellram is part of TMB with end markets Stellram has very strong product portfolio for Power Gen & Aero Segments © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 19
Slide 20: Innovations
Innovations Will help the customers to buy our products with ease of doing business by leveraging the wealth of machining expertise from our knowledge and experience. New way of thinking Smarter way to get the job done Tools for the next generation © 2014 Kennametal Inc. l All rights reserved. l Pro
Slide 21: Economic Outlook
Economic Outlook • Policy Changes and reform • Recovery timeline on the ground Initiatives from the Govt. level with end customer production increase is still unclear across segments • Enhanced focus on Manufacturing (Make in India initiative) • Energy, employment and raw material costs are raising
Slide 22: Our Continued Focus on Initiatives
Our Continued Focus on Initiatives Topline • Channel Strategy & Distribution expansion • Advance with Technology : Component specific proven solutions • Service initiatives such as Tool Boss and Reconditioning centers • New higher value added products in Infrastructural products moving up on Value C
Slide 23: Management Team
Management Team Strong and experienced Senior Management Team with many around 20-25 years of industry experience. • BC Rao, MD • Parameshwar Reddy, CFO • Chandrashekar Sharma, VP KMT Industrial • Kumud Ranjan, GM – WIDIA • M.T.Swamy, GM – Infrastructure • M.N.Bhaskara Rao, GM – Manufacturing • HR H

Kennametal India — Shareholder Meeting (November 2014) on 6ix

Kennametal — Kennametal India — Shareholder Meeting (November 2014)

Slide 1: 49th AGM Kennametal India Limited

Slide 2: Content

Slide 3: Disclaimer

Slide 4: Global Leader In Tooling & Wear-Resistant Solutions

Slide 5: Two Well-Defined Businesses Delivering Our Mission

Slide 6: Specific to India Machine Tools

Slide 7: Kennametal India FY14 review

Slide 8: FY14 Review: Economic Environment

Slide 9: Served Markets Impacting our Business

Slide 10: Indian IIP and KIL Sales Development trend

Slide 11: HCV/CV affected us the most

Slide 12: Financial Performance

Slide 13: Key Performance Indicators – FY14

Slide 14: Financial Results & Trends

Slide 15: Going Forward

Slide 16: Goal: Become a More Diversified Industry Leader

Slide 17: Acquisition of Tungsten Materials Business from ATI

Slide 18: Acquisition Advances Strategic Priorities

Slide 19: Stellram is part of TMB with end markets

Slide 20: Innovations

Slide 21: Economic Outlook

Slide 22: Our Continued Focus on Initiatives

Slide 23: Management Team

Slide 24: Thank You