Kennametal Inc. · NYSE:KMT

Kennametal — Q1 FY2022 Earnings Presentation

30 slides from Kennametal's earnings presentation, Nov 2, 2021

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: Q1 FY22 Overview & Highlights
Results highlight strong operating leverage in improving market environment Q1 FY22 Overview & Highlights ▪ Improving end-markets & results from growth initiatives driving strong sales: 19% organic growth vs. (21)% prior year • YoY growth across all end-markets • Segment YoY organic growth rates: Me
Slide 4: Recent Customer Wins
Commercial Excellence initiatives driving share gain Recent Customer Wins Electric Vehicles Aerospace Renewable Energy Mining Adjacencies ✓ Strengthened ✓ Displaced local ✓ Developed new ✓ Expanded our our leadership brands at tier solution for wear-resistant position suppliers with our prominent wi
Slide 5: Consolidated Q1 FY22 Financial Overview
Successful execution of Operational and Commercial initiatives Consolidated Q1 FY22 Financial Overview Adjusted Reported Change Quarter Ended ($ in millions) from PY Sept. 30, 2021 Sept. 30, 2020 Sept. 30, 2021 Sept. 30, 2020 Sales 21% $484 $400 $484 $400 Organic 19% (21)% 19% (21)% FX 2% (1)% 2% (1
Slide 6: Q1 FY22 Adjusted EPS Bridge
Significant EPS improvement driven by strong operating leverage Q1 FY22 Adjusted EPS Bridge $0.60 $0.50 $0.02 $0.44 $0.02 $0.04 $0.40 $0.33 $0.30 $0.20 Includes: • ~4 cents Simplification/Modernization carryover • Headwind of ~(12) cents (~$15M) from prior year temporary cost control actions $0.10 $
Slide 7: Metal Cutting Business Segment
Improved margins driven by execution of operational initiatives and growth Sales by Geography Sales by End Market AsiaPac 22% Energy 7% Metal Cutting Business Segment Americas 40% Aerospace 9% General Engineering 56% Q1 FY22 Summary EMEA Transportation 38% 28% Q1 FY22 sales $298 million; organic sal
Slide 8: Infrastructure Business Segment Q1 FY22 Summary
Continuing market recovery and share gain driving improvement Sales by Geography Sales by End Market AsiaPac General Infrastructure Business Segment 23% Engineering 35% Energy 29% Q1 FY22 Summary EMEA 19% Americas Earthworks 58% 36% Q1 FY22 sales $185 million; 19% organic sales growth vs. (18)% decl
Slide 9: Strong balance sheet and cash flow generation
Strong balance sheet and cash flow generation Debt Structure & Share Repurchase Program 700 Total Debt Net Debt 640 Extended debt maturity profile 600 592 596 593 • Two $300M notes mature June 2028 & March 2031 • $700M revolver matures June 2023 $ Millions 541 490 483 486 • Covenant ratios well with
Slide 10: Q2 FY22 Outlook: YoY growth and strong operating leverage
Q2 FY22 Outlook: YoY growth and strong operating leverage Q2 FY22 Outlook Sales $480M - $500M (up 9% -14% YoY) Temporary Costs ~$10M headwind YoY Adjusted Operating Income > $46M (up 96% YoY) Adjusted Effective Tax Rate 25% - 28% Free Operating Cash Flow Positive Sales mid-point reflects following a
Slide 11: FY22 Outlook: Driving strong full-year operating leverage and cash flow
FY22 Outlook: Driving strong full-year operating leverage and cash flow FY22 Full-Year Outlook Temporary Prior Year Cost Actions ~$25M headwind YoY in 1H FY22 Adjusted Effective Tax Rate 25% - 28% (vs. 23.6% in FY21) Depreciation & Amortization $140M - $145M (up $15M - $20M YoY) Capital Spending $11
Slide 12: Looking Ahead: Foundation in place for outperformance
Leveraging modernized footprint to gain share and improve margins Looking Ahead: Foundation in place for outperformance Underlying demand supports positive outlook, despite near-term uncertainty • Double digit YoY growth expected to continue in Q2 • Pent-up demand in Transportation likely to materia
Slide 13: Appendix
Appendix
Slide 14: Adjusted Segment Results
Adjusted Segment Results Quarter ended ($ in millions) September 30, 2021 September 30, 2020 Metal Cutting Infrastructure Total Metal Cutting Infrastructure Total Sales $298 $185 $484 $248 $152 $400 Organic 19% 19% 19% (23)% (18)% (21)% FX 2% 3% 2% (1)% - (1)% Business Days (1)% (1)% - - 1% - Divest
Slide 15: Balance Sheet
Balance Sheet ASSETS ($ in millions) September 2021 June 2021 Cash and cash equivalents $107 $154 Accounts receivable, net 280 303 Inventories 505 476 Other current assets 75 72 Total current assets $967 $1,005 Property, plant and equipment, net 1,036 1,055 Goodwill and other intangible assets, net
Slide 16: 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 17: 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 — Q1 FY2022 Earnings Presentation on 6ix

Kennametal — Q1 FY2022 Earnings Presentation

Slide 1: FY22 First Quarter Earnings Call Presentation

Slide 2: Safe Harbor Statement

Slide 3: Q1 FY22 Overview & Highlights

Slide 4: Recent Customer Wins

Slide 5: Consolidated Q1 FY22 Financial Overview

Slide 6: Q1 FY22 Adjusted EPS Bridge

Slide 7: Metal Cutting Business Segment

Slide 8: Infrastructure Business Segment Q1 FY22 Summary

Slide 9: Strong balance sheet and cash flow generation

Slide 10: Q2 FY22 Outlook: YoY growth and strong operating leverage

Slide 11: FY22 Outlook: Driving strong full-year operating leverage and cash flow

Slide 12: Looking Ahead: Foundation in place for outperformance

Slide 13: Appendix

Slide 14: Adjusted Segment Results

Slide 15: Balance Sheet

Slide 16: Non-GAAP Reconciliations

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)

Slide 30: Non-GAAP Reconciliations (cont’d)