Kennametal Inc. · NYSE:KMT
Kennametal — Q4 FY2015 Earnings Presentation
8 slides from Kennametal's earnings presentation, Jul 30, 2015
Slide 1: Fiscal 2015 Fourth Quarter Supplemental Presentation Materials
Fiscal 2015 Fourth Quarter Supplemental Presentation Materials Donald Nolan, President & CEO Martha Fusco, Interim CFO, VP Finance & Corporate Controller July 30, 2015 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation 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 no
Slide 3: June Quarter Highlights
June Quarter Highlights © 2015 Kennametal Inc. l All rights reserved. l 2 • Performance driven by progress on cost reduction measures and significant improvements in working capital – Adjusted EPS $0.46 for June quarter – $2.02 for Fiscal 2015 • Record free operating cash flow of $267M • Restructuri
Slide 4: Current Initiatives
© 2015 Kennametal Inc. l All rights reserved. l 3 Current Initiatives • Portfolio simplification – Potential divestitures of approximately $150-$250M sales – Accretive to operating margin when completed • Footprint restructuring – Reduce overall footprint 20-25 percent, includes divestitures – Close
Slide 5: Fiscal 2016 Expectations
• Fiscal 2016 EPS $1.70 to $2.00 per share – Includes $0.30 to $0.35 per share FX headwinds – Organic sales decline 1-3 percent – Negative sales impact of 6 percent due to currency – Difficult comparisons through December 2015 • Expect some growth in Industrial segment; not sufficient to offset weak
Slide 6: Long-Term Opportunities
© 2015 Kennametal Inc. l All rights reserved. l 5 Long-Term Opportunities • Focused on delivering meaningfully improved profitability; expanding ROIC to double-digit • Rebuilding KMT’s investment story – Simplify business – Re-align cost structure – Support future growth, i.e. innovation & new produ
Slide 7: June Quarter Financial Update
June Quarter Financial Update (on an adjusted basis, in USD-000s, except percentages and per share amounts) © 2015 Kennametal Inc. l All rights reserved. l 6 Consolidated Results June 2015 June 2014 Segment Results Industrial Infrastructure Sales 637,653$ 772,204$ Sales 357,519$ 280,134$ Organic -10
Slide 8: Outlook Fiscal 2016
Outlook © 2015 Kennametal Inc. l All rights reserved. l 7 Total Sales (7%) - (9%) Organic Sales (1%) - (3%) Effective Tax Rate (excluding special charges) 24% - 26% Adjusted EPS $1.70 - $2.00 Cash from Operating Activities $275M - $310M Net Capital Expenditures $160M - $175M Free Operating Cash Flow