Kennametal Overview

Kennametal Inc. (NYSE:KMT)

Our Mission:

Kennametal Delivers Productivity To Customers

Seeking Peak Performance In Demanding Environments
y Providing
By g Innovative Custom And Standard Wear-
resistant Solutions

Our Promise:

Engineering Your Competitive Edge

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 2

Kennametal Inc. (NYSE:KMT)

A global leader in tooling solutions, engineered

components and advanced materials

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 3

What We Do…

Kennametal pproducts and services are a part

p of everyday
y y life…
from the time you turn the light switch in the morning…
to the breakfast you eat or the car you drive.

Our products are consumed in the manufacturing process

– 80% consumable products
– Serving
S i diverse
di end
d markets
k t
– Deliver 3-4 times value relative to cost
– No customer accounts for more than 3% of sales

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 4

Company Overview

¾ Revenues approx $ 2.74 Billion

¾ Diverse, Global Workforce
¾ Operating in over 60 countries
¾ 11,000 dedicated employees
¾ Geographic sales balance
ƒ NA 47%, Western EU 35%, ROW 18%

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 5

Products Offered

Metal Cutting Tools

Milling
Turning

Indexable Drilling
Tooling Systems

Premier Tooling and Productivity Solutions

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Metal Cutting Tools

ƒ Kennametal is #1 or #2 in most of the markets we serve

ƒ Solves industry challenges by employing leading-edge

technologies, award-winning new product development
p
processes

ƒ Established market-leading pace for advanced carbide

substrate and coating technologies,
technologies cutting
cutting-edge
edge geometries
and new tooling design

ƒ Offers complete solutions for end

end-to-end
to end part processing

D i i Reduced
Driving R d d Costs
C t and
dPProductivity
d ti it for
f Customers
C t
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Metal Forming & Wear Solutions
Extrude Hone
Solutions
Unfinished Hole

Carbide substrate
Road Razor
Conforma Clad Oven
Finished Hole

Fixed cutter bit

Extruder Barrels Custom Wear Solutions

Premier Wear Components and Specialty Solutions

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 8
Metal Forming & Wear Solutions

ƒ Serves automotive, aerospace, defense, energy, mining,

construction and super alloy industries
construction,
ƒ Leverages and enhances the Kennametal brand with next
generation tools
ƒ Expanding into adjacent markets; growing in profitable markets
ƒ Providing solutions for tunneling wear parts,
parts surface mining and
oil sands
ƒ Expanding into new material systems that serve high-growth
markets
k t

Solutions with Exceptional Resistance to Wear,

Wear
Abrasion and Corrosion
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Sales by Geographic Region

FY 03 FY 10 Long-Term Goal

ROW ROW
13% 20% ROW
33% NA
NA NA
W. Eur
W E 56%
34%
31%
W. 47%
Eur
33% W.
Eur
33%

Sales: $1
$1.7B
7B Sales: $1
$1.9B
9B

Growth Strategies Focusing on Investment and

D l
Deployment t in
i Developing
D l i Markets
M k t
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Innovation

• Over 1,000 highly trained and experienced research scientists

& development
p engineers
g
• Averaging over 40 U.S. Patents each year
• 47% of sales from p
products less than 5 years
y old —
up from 17% in the late 90s.
• Carnegie Science Center Award of Excellence Corporate Innovation 2007
• Four-time Best-Practice Partner by the APQC
Latrobe, PA
– R&D Productivity Bedford, PA
Tianjen,
China

– Leader in Innovation
Rogers, AR
– Portfolio Management
Evans, GA
– Improving Front-End Effectiveness
Bangalore,
India
Fürth/Essen,
Germany
Shlomi,
Israel
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New Product Development

Differentiating
e e t at g Technology
ec o ogy
to Grow Sales and Expand Margins
© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 12
Leadership Principles

Ambitions
Be the Best in Customer Satisfaction
Be an Employer of Choice for the Best People
Create a Diverse,, Global Culture
Renew Product Lines at Market-Leading Pace
Consistently Grow Market Share, growing at a minimum of 2X market
Be a Consistent Top Tier Financial Performer

Values
Integrity
g y
Customers
People
Environment
Innovation
Performance

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 13

Kennametal Value Business System

Our core business execution processes to create superior

value for our customers and stakeholders
© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 14
Guiding Principles

Grow Our Core Powder to Shape Materials Business

Our Ambitions Enterprise Strategies

¾ Be
B th
the Best
B t iin Customer
C t S
Satisfaction
ti f ti ¾ Geographic Presence of Equal
Thirds in N.A., W. Europe and ROW
¾ Be an Employer of Choice for the Best
People
p ¾ Channel-Brand Strategy
gy

¾ Create a Diverse, Global Culture ¾ Introduce New Products at Market

Leading Pace
¾ Renew Product Lines at Market-Leading
Pace ¾ Attract, Engage and Retain Top
Talent
¾ Consistently Grow Market Share,
Growing at a Minimum of 2X Market

¾ Be a Consistent Top-Tier performer

Consistent, Proven Path to Premier Performance

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 15
Our Global Customers:

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 16

Kennametal India Limited

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 17

Overview: Kennametal India

ƒ Formerly Widia India Limited

Limited, was incorporated in

1964 & manufacturing started in 1967

1967.

ƒ Kennametal acquired a 88 percent stake as a part

of global acquisition in 2002.

ƒ A Turnaround story..

ƒ Revenues INR 563 Cr in FY12

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 18

Overview: Kennametal India

ƒ 950 dedicated employees

ƒ Manufacturing Plant only at Bangalore

ƒ Regional
g Sales Operations
p in all major
j Industrial Towns

ƒ Serving diverse end markets

ƒ Global shared services for Engineering and IT functions

ƒ An ISO 9001certified company

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 19

© 2008 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 20