Kennametal Analyst Day

Different Thinking. Sustainable Growth.

September 28, 2011 Safe Harbor Statement

This presentation contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and •SectionClick 21E of theto Securities edit ExchangeMaster Act of text 1934. Forward styles-looking statements are statements that do not relate strictly to historical or current facts. You can identify forward-looking statements by the fact they use words such as "should," "anticipate,"– Second "estimate," level "approximate," "expect," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance or events. Forward•-lookingThird statements level in this release concern, among other things, Kennametal‟s outlook for earnings for its fiscal year 2011, and its expectations regarding restructuring initiatives, future growth and financial performance, all of which are based on– currentFourth expectations level that involve inherent risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward looking statements prove incorrect, actual outcomes could vary materially» Fifth from level those indicated. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties related to: the recent downturn in our industry; deepening or prolonged economic recession; restructuring and related actions (including associated costs and anticipated benefits); changes in our debt ratings; compliance with our debt arrangements; our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability; changes in the regulatory environment in which we operate, including environmental, health and safety regulations; our ability to protect and defend our intellectual property; competition; our ability to retain our management and employees; demands on management resources; availabilityClick and tocost editof the raw Master materials we usesubtitle to manufacture style our products; global or regional catastrophic events, including terrorist attacks or acts of war; integrating acquisitions and achieving the expected savings and synergies; business divestitures; potential claims relating to our products; energy costs; commodity prices; labor relations; demand for and market acceptance of new and existing products; and implementation of environmental remediation matters. These and other risks are more fully described in Kennametal's latest annual report on From 10-K and its other periodic filings with the Securities and Exchange Commission. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.

This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available on our website at www.kennametal.com. Once on the homepage, select “Investor Relations” and then “Events.”

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©2011©2011 Kennametal Kennametal Inc. Inc. | |All All rights rights reserved. reserved | 3 • Click to edit Master text styles – Second level Strategic• Third Overview level – Fourth level Carlos Cardoso – Chairman, President and CEO Positioning For» Fifth Growth level John Jacko – VP and Chief Marketing Officer Executing Our Strategies Click to edit Master subtitleJohn Tucker style – VP and President, Business Groups Delivering Results Frank Simpkins – VP and Chief Financial Officer Summary Carlos Cardoso – Chairman, President and CEO

©2011©2011 Kennametal Kennametal Inc. Inc. | |All All rights rights reserved. reserved | 4 Significant Progress Made Since September 2010 Review … A Different Company • Click to edit Master text styles – Second level September 28, 2011 • Third level • Surgical Cuts To Ensure Readiness For Growth – Fourth level » Fifth level • Achieved 28% Growth In 2011 • WIDIA Currently Our Fastest Growing Brand – 37% Growth

• Permanent Cost Reduction Click to edit Master subtitle style• Implemented > 80% Standard Processes With Full Enterprise SAP Capability

• Successfully Transition To Enterprise Market Structure

• Profitability Achieved All Time High!

Target: Deliver 15% EBIT and 15% ROIC By 2012

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 5 Kennametal Overview Our Customers • Aero-structure, Aero-engine Manufacturing • Surface And Underground Mining • Click to edit Master text styles • Transportation Manufacturers Our Mission • Oil And Gas Drilling • Manufacturing Machining Centers Deliver Productivity– Second To level Customers Seeking Peak Performance In Demanding• Third level Environments By Providing Our Differentiators Innovative Custom And – Fourth level Standard Wear-resistant » Fifth level • Proprietary Powder Metal Solutions Material Formulas • Customer Application Expertise • Engineered Solutions • Patented Pressing, Sintering Our Products And HIPing Methods • Tungsten Processing Methods • EnergyClick Exploration to Cutting edit Master subtitle style Systems • Road Rehabilitation, Mining Drums And Cutting Our Processes Systems • Deliver High Performance Wear • Machine Tooling: Turning, Solutions Using Advanced Milling, Hole Making, Materials Expertise Including Systems Tungsten Carbide, Ceramics, • Specialized Solutions Super-hard Materials, And Proven Product Development Methods

©2011 Kennametal Inc. | All rights reserved. | 6 Journey To Enterprise Organization Results In Different Culture And Strong Performance • Click to edit Master text styles Implemented – Second level Reduced Standard SAP Structural Costs - • Third level Plants, Headcount Implemented Managing Our Enterprise Model – Fourth levelBusiness » FifthPortfolio level For Launched Growth Brand/Channel Standardized Strategy Processes To Instituted KVBS Eliminate Waste To Build Global Driving Lean Culture Initiatives Globally Click Improvedto edit Balance Master subtitle style Sheet And Business Fundamentals

2003 2012 & Beyond

Sales $1,662M Sales $2,590M Sales $2,403M EBIT* $105M 6.3% EBIT* $299M 11.6% EBIT* $338M 14.1%

ROIC* 5.5% ROIC* 12.3% ROIC* 14.8% 2008 Employees 13,970 Employees 13,673 2011 Employees 11,612 2003** Debt/Cap 41.5% Debt/Cap 17.2% Debt/Cap 15.9%

* On An Adjusted Basis , **Data Does Not Reflect Divestitures

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 7 Recession Provided Opportunity To Accelerate Our Progress To Be A Breakaway Company • Click to edit Master text styles – Second level • Third level Most Companies Breakaway Companies – Fourth level See Turbulent Times As Appeal To » Fifth level Common Wisdom Opportunities To Gain Advantage

“Provide Customer Solutions” “Streamline Operations, Chase Demand” • Understand And Respond To Customers Click• Cut Costs to And Operateedit ForMaster Efficiency subtitle style• Innovate Around Customers‟ Needs • Focus On The Core Business • Take Advantage Of Strategic • Stay The Course (Avoid Rash Strategy Changes) Acquisitions And Alliances • Respond To Recession Created Demand • Invest In Business Efficiency • Realign Organization To Respond To Core Customers‟ Needs

Source: R Gulati/HBS

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 8 New Enterprise Customer Facing Structure Drives Growth And Optimization • Click to edit Master text styles – Second level Customers • Third level – Fourth level Aerospace & Transportation General Energy Earthworks Defense » FifthAutomotive level, Engineering Oil & Gas, Mining, Airframe, Heavy Vehicle, Die, Mold, Wind, Construction, Engine, Rail, Bearings, Nuclear, Power Heavy Penetrators Shipbuilding Job Shop Generation Equipment

Sales – Americas, Europe, Middle East, Africa, Asia Pacific Click to edit Master subtitle style

Shared Services – Driving Functional Excellence

Industrial Segment Infrastructure Segment

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 9 Portfolio Management Maintaining Strategic Relevance and Profitability • Click to edit Master text styles 2004 2005 2006 2007 2008 2009 – Second level • Third level – Fourth level ISA

Acquisitions » Fifth level Diva-Tec/VMB CAMCO Kenci

Conforma Clad Extrude Hone Sintec Federal Signal Tricon

India M&C FSS Electronics Hi Speed Steel

J&L

Click to edit Master subtitlePresto style

CPG Divestitures Divestitures Of Acquisitions Of ~$600M In Sales Of ~$300M In Sales Of Lower EBIT Margin Higher EBIT Margin

• Click to edit Master text styles Advance with Technology Win The Customer Deliver market-leading advances, innovations Earn The Reputation– AsSecond The Most level and customer delivery systems that will enhance Knowledgeable And Easiest our global competitiveness. Achieve product Partner To Do Business With. line renewal at an unparalleled pace. Make Develop And Retain Customers,• Third level today’s technological upgrades tomorrow’s tools And Deliver Enhanced for maintaining our advantage. Productivity Solutions. Become – Fourth level The Recognized Leader In Customer Satisfaction And » Fifth level Commit To Loyalty, And Increase Our Excellence Penetration Into Core Markets Consistently Deliver Quality And Existing Customers. Products And Service Solutions, On-time, And At Record Industry Lead Times. Maximize Lean Processing To Achieve Top-tier Performance Click to edit Master subtitle style And Company-wide Financial Ensure Mission Excellence. Readiness Acquire, Train And Manage Talent For The Challenges Ahead, And Be Grow For Profit Seen As The Employer Of Choice For Build And Maintain A Balanced The Best People. Develop A Flexible, Portfolio Of Products, Markets And Effective And Ever-ready Team That Geographies - The “Thirds,” And Can Deliver The Best Solutions Consistently Grow Our Enterprise At Faster And More Accurately, And Twice The Market Rate. Achieve Exceed Customer Expectations. Organic, Inorganic And Emerging Market Growth With The Focus On Profitability And Shareholder Return.

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 11 A Different Company Today • Click to edit Master text styles – Second• Global level Industry Leader; Diversified Mix Of Served End Markets; Powerful Brand Portfolio • Third level • –BalancedFourth level Geographic Presence; Strong Growth Prospects From» FifthDeveloping/Emerging level Markets

€ • Consumables Business Model; Attractive Annuity Streams Of ¥ $ Revenue Click to edit Master subtitle style • Record Of Innovation; New Product Introductions At Market- leading Pace

• Compelling Financial Profile; Less Cyclical; Streamlined Cost Structure

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 12 Global Industry Leader; Diversified Mix Of Served End Markets; Powerful Brand Portfolio • Click to edit Master text styles Transportation Energy Automotive, Shipbuilding, Oil And Gas,– IndustrialSecond level Heavy Vehicle, Motorcycle, Rail And Customized Processing, And High-speed Rail Industries Power Generation, Chemical,• Third level Food And Beverage – Fourth level » Fifth level Energy Transportation

Aerospace & Defense Aircraft, Rotorcraft, Space Vehicles, Earthworks Ground Vehicles, Sea Vessels, Engines, EarthworksClick to edit Master subtitle style Accessories And Ballistics Underground Mining, Surface Mining, Quarrying, Road Milling, Construction, General Tunneling, Recycling, Engineering Forestry, Agriculture And Snow Removal General Engineering Growth Faster A Broad Range Of Applications, Including Fluid Than IPI Power, Manufacturing, Forming And Forging, Job Shops, Medical And Measurement, Consumer Goods And Electrical

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 13 Balanced Geographic Presence; Strong Growth Prospects From Emerging Markets • Click to edit Master text styles Rest of World Western EU North America – Second level 15% 17% • Third20% level20% 25% 26% 30% 34% – Fourth32% level 35% 28% 28% » Fifth level

55% 49% 45% 48% 47% 46%

FY06ClickFY07 to editFY08 MasterFY09 FY10 subtitleFY11 style Revenue Distribution By Region China Manufacturing Outlook Managed Growth

• Business In Over 60 Countries • Global Account Leadership In Place For Global Customers • China, India Strategies In Place To Capture Growth • Brazil Strategy In Process

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 14 Consumables Business Model; Attractive Annuity Revenue Streams • Click to edit Master text styles – Second level € • Third level ¥ $ – Fourth level » Fifth level

80% Of Revenues Derived From Consumables Click to edit Master subtitle style

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 15 Record Of Innovation; New Product Introductions At Market Leading Pace • Click to edit Master text styles 50%– Second level 45% • Third level 40% – Fourth level Recession 35% » Fifth level

30%

25% % Sales From New Products Click20% to edit Master subtitle style

• Delivering New Product Innovation And Margin Expansion • Numerous Awards For Innovation • PDMA – OCI Award • Enterprise And Segment Prioritization Process In Place

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 16 Compelling Financial Profile; Less Cyclicality In Sales, Margin And Earnings • Click to edit Master text styles • Strong– Second Operating level Leverage Due To Streamlined• Third Cost level Structure – Fourth level • Consistent Cash Flow Generation » Fifth level • Strong Balance Sheet Capacity

• Continued Focus On Process Efficiency – ClickDrive to Out edit Non Master-value Added subtitle Work style Further Upside • Significantly Lower Breakeven Point Opportunities

• Substantial Margin And Earnings Expansion – Current And Ongoing

• Click KMTto editVs. IPI MasterTrends text styles KMT vs. Global PMI Trends 220 113 KMT 12MMA SA IPI 12MMA SA 220 KMT 12MMA SA PMI 12MMA SA 70 – Second level 111 200 65 109 200 60 180 107

• Third level 180 $M

$M 55

- 105 160 -

– Fourth level 103 IPI 160 50

PMI Sales Sales Sales 140 101 45 » Fifth level 140 99 40 120 R2=95% 97 120 R2=89% 35 100 95 100 30 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11

Click to editIPI ForecastMaster subtitle style

Goal: Grow Minimum 2X to 3X IPI

Source: IHS Global Insight

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 18 Strategy To Execute In All Market Conditions • Click to edit Master text styles Raw Materials – Second level Inflation Supply Chain • Third level – Fourth level » Fifth level- - World Events + (Eurozone Crisis,

Growth - Japan, Credit Click to edit+ Master+ subtitle+ style+ + + Crisis)

Global Expand WIDIA Enterprise New Product Pricing Economic Asia- Strategy Selling Introduction Expansion Pacific Presence

Kennametal Specific

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 19 Disciplined Inorganic Growth – Technology Is Core To Identifying Growth Prospects • Click to edit Master text styles – Second level

• Third level New • New End Markets – Fourth level • Additional Services Platforms • Materials Platforms » Fifth level

• China, India, Brazil Geographic • Select EMEA, Americas Click to edit Master subtitle style • Strengthen Core • Extend Emerging Trends Technology • Expand Alliance/Partner • Utilize Digitization

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 20 Long Term Financial Strategy And Management Compensation Aligned With Shareholder Interests • Click to edit Master text styles – Second level • Third6 -10% level Top Line CAGR – Fourth level » Fifth level 15% - 20% Earnings Per Share Growth

$300 - $400M Free Operating Cash Flow Click to edit Master subtitle style Debt To Capital At 30% - 40%

PWC % Of Sales At 20% - 25%

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 21 Kennametal Is A Different Company • Click to edit Master text styles – Second level Retaining• Third Our level Strengths – Fourth level  Managing Our Portfolio For Growth » Fifth level  Balancing Served Geographic Regions To Meet Our “Thirds Goal”

Maximizing Opportunities During Recession

Click toPermanent edit Master Cost Removal subtitle Actions style

 Executing On Enterprise Customer Facing Strategy

 Implementing WIDIA And Indirect Channel Strategies

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 22 • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Positioning For Growth

ClickJohn Jackoto edit Master subtitle style Vice President and Chief Marketing Officer

©2011©2011 Kennametal Kennametal Inc. Inc. | |All All rights rights reserved. reserved | 23 Building Platforms For Sustained Growth And Profitability • Click to edit Master text styles – Second levelEnterprise Growth Drivers • Third level – Fourth level » Fifth level

Products Channel ClickGeographic to editTechnology Master subtitleTo styleServices Pricing Brand Solutions

Building the Kennametal Enterprise

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 24 New Enterprise Customer Facing Structure Drives Growth And Optimization • Click to edit Master text styles – Second level End Market Driven Customers Strategies • Third level • Executing On – Fourth level Market Defined Strategies, Goals Energy Aerospace» FifthTransportation level General • Driving Customer Earthworks Airframe, Automotive, Rail, Engineering Oil & Gas, Mining, Intimacy Engine, Shipbuilding, Die, Mold, Wind, Construction, Unified Sales Penetrators,Force Bearings, • ShortensNuclear, Company Power Heavy Armor Job Shop, ReactionGeneration Time To Equipment • Delivering Breadth / Depth Of Customers‟ Needs Changes In • Identifying And Closing New Opportunities In Customers‟ Cycles Sales – Asia Pacific, Europe, Middle East, Africa, Asia-Pacific ClickExisting Accountsto edit Master subtitle style Global Integration Of Company Functions Shared Services – Driving Functional Excellence • Delivering Global Functional Excellence • Identifying Cost Efficiencies And Synergies Industrial Segment Infrastructure Segment

Country• RankingsClick – Manufacturing to edit Output Master text styles • China Strategic Plan Implemented; – Second level 2005 2010 2015 Currently Executing And Exceeding (1) US China China Growth Plans (2) Japan • ThirdUS levelUS (3) China Japan Japan (4) Germany –GermanyFourth levelGermany • India Strategic Plan Implemented; (5) Italy Korea Korea (6) France Italy » FifthIndia level Currently Deploying Program And (7) Korea France Italy

(8) UK India France Resources To Accelerate Growth

(9) Spain UK Brazil

(10) India Brazil UK • Brazil Strategic Plan In Process

Regional Growth Comparison © 2011 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 1 Rest Of World Sales (Real GDP at PPPClick exchange rates) to edit Master subtitle style ($M) 14.0% $1,000 China 12.0%

10.0%

8.0% India $625 6.0% LA S.E. Asia 4.0% EU Germany MEA 2.0% $293 U.S. Emerging EU CAGR Previous 5 Years CAGR 0.0% Japan U.K. -2.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% CAGR Next 5 Years

Source: Global Insight, International Monetary Fund (IMF) * Bubbles size represents 2016 GDP at 2005 PPP rates FY05 FY11 Goal China and India are in a League of their Own

% Of New Product Sales Goal:• ~40Click% Of Sales to Fromedit Products Master Introduced text In styles The Last 5 Years – Second level 50% • Globally Integrated Technology Organization • Award-winning• ACEThird Project level Management 45% • ~45 New U.S. Patents– Fourth Annually level Plus Overseas 40% Equivalents Recession • System Drives Cross-functional» Fifth Integration level 35% • Award Winning Processes And Products 30% • Four-time Best-practice Partner By The American Productivity And Quality Center (APQC) 25% • Carnegie Science Center Awards Of Excellence % Sales From New Products Goal Corporate Innovation 2007 20% • Advanced Manufacturing 2009 & 2011 Click• PDMA to-- Outstanding edit Master Corporate Innovator subtitle 2010 style

Road Razor ECO™

“3-surface/ring” contact Reduces operating costs Most rigid connection in while delivering ultimate the industry. performance.

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 27 Optimizing Product Portfolio For Customers And Business Efficiency • Click to edit Master text styles • Customer Feedback Driving Product # Of SKU‟s Solutions– Second level • Enterprise Wide Project Prioritization WIDIA Process – Market• Third And Product level Driven KMT – Fourth level Voice Of Customer Driving» Fifth Component level Solutions Versus Products 384 286 218 180 158 53 117 108 59 Click to edit Master subtitle style FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Continuing to Rationalize SKU‟s In a Two Brand Portfolio

• Moving Away From Private Label Products • Concentrating Resources On Delivering A Integrated Block System Branded Solution

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 28 Building On Our Services Strategy Is Critical To Growth And Further Reduces Cyclicality • Click to edit Master text styles

Automated – Second levelTool Customer Driven Solutions: Management • ThirdSystem level • Reduced On-hand Inventory • Reduced Tool Consumption – Fourth level • Reduced Downtime » Fifth level • Avoided Stock-outs • Guaranteed Costs • Productivity Savings Supply Customer Tool Chain • Usage Reporting Reconditioning Services Services Benefits: Click to edit Master subtitle style • Improve Share Of Wallet • Replace Competitive Product • Reduce Cyclicality • Build Stronger, Stickier Cost Per Relationships Part Programs • Increase Profitability

Less Impacted During Recent Recession; Quicker Return To Growth

• Click toTurning edit  MillingMaster  Holemaking text styles  Systems  Tapping  Grooving – Second level Customer • Third level Driven – Fourth level • Direct And Indirect Sales» Fifth level • Indirect Sales Only • Engineered Solutions • Channel Partner Loyalty Program • OEM And Top Tier Account • Differentiated Products Support • Territory Management • Focused On Sandvik • No Direct Channel Conflict • Application Engineer Supported 50% • Focused on ISCAR, Walter, Click to edit Master subtitle50% style Ingersoll, SECO, etc. 100% Direct 30% Leader In Changing Indirect 70% Competitive Landscape

2011 2016

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 30 The New Channel Partner Rewards Program Decreases Channel Conflict And Rewards Growth • Click to edit Master text styles Previous

– Second level Nationals/ MRO Direct Channel• Third levelIndirect Channel VARs Integrators – Fourth level • Channel Conflict • Competing Between Direct »AndFifth Indirect level Channels • Inconsistent Programs, Discounts And Expectations Channel Partner Rewards Program Goals Are To Motivate Profitable Growth And Service For Customers. Current • Increase Focus On Kennametal Or WIDIA Click to edit Master subtitle style Brands Indirect Channel • Optimize Number Of Partners • Build Distributor Loyalty Direct Channel • Level The Playing Field • Develop Consistent Marketing • Consistent Terms And Functional Discounts Communications • Defined Territories • Rooted In Growth • Audit Adherence To Standards • Complementary And Consistent • Drive “Self-serve” Behavior

• Click to edit Master textPrice styles / – Second level Performance • Third level – Fourth level » Fifth level Rigorous Product Portfolio Market Driven New Product And Product Life Cycle Development Management

Click to edit Master subtitle style Customer

Channel / Competitor Price Responses Raw Material Competitive Cost Changes Proactive Cost Savings Landscape Reporting System

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 32 Pulling All Levers To Ensure Profitable Top Line Growth • Click to edit Master text styles – Second levelEnterprise Growth Drivers • Third level – Fourth level » Fifth level

Products Channel ClickGeographic to editTechnology Master subtitleTo styleServices Pricing Brand Solutions

Building the Kennametal Enterprise

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 33 • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Executing Our Strategies

ClickJohn Tuckerto edit Master subtitle style Vice President and President, Business Groups

– SecondSeptember level 29, 2010 September 28, 2011 Shifting the •CultureThird Internally level • End Market Strategies Drive – Fourth level Investment Decisions Starting Point » FifthDesired level State • Implementation Of The WIDIA • Many Brands • Unified Culture • Many Sites and P&L’s • Integrated Business Brand Portfolio Gaining Traction Building A • Many Individual Cultures Kennametal • Best Practice Sharing • Limited Communications Brand • Leveraging Size as an • Functional Clarity Provides Structure Advantage Additional Opportunities For • Limited Shared Service • Global Partners for ClickModel to edit MasterGlobal subtitle Customers style Lean Savings

• Global Account Leadership In Using Change Management To Lever The Process Place

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 35 Execution Delivered All-Time Record Performance In FY11 • Click to edit Master text styles 28% Sales Growth – Second level 127% EBIT* Growth • Third level 14.1% EBIT* – Fourth level » Fifth level • First Year Successfully Operating In New Structure • Implemented SAP 6.0 And Standard Global Processes • Managed Significant Raw Material Cost Increases Click• Bothto edit Segments Master Achieved subtitle Double style -digit Growth In Sales And Operating Income • Significantly Improved Operating Income And ROIC Over Prior Years

* On An Adjusted Basis

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 36 Value Creation For Customers Drives Operational Efficiency And Record Financial Performance • Click to edit Master text styles Sales ($M) – Second level $2,403 • Market Facing Strategy Builds $2,000 •$1,884Third level Customer Centric Mindset – Fourth level • Globalized Standard Processes Leveraging SAP » Fifth level • Cost Reductions Remain Permanent FY09 FY10 FY11 • Executing Our Growth Plans

EBIT* (% of Sales) Click to edit Master subtitle style 14.1%

7.9% 4.7% Achieving Goals Ahead Of Expectations

FY09 FY10 FY11

* On An Adjusted Basis

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 37 Industrial Segment Strategies And Initiatives Aligned To Execute Growth • Click to edit Master text styles Company Strategies Industrial Strategies Industrial Initiatives Industrial Results – Second level

Win the • Third level FY10 FY11 CHG Customer • Deploy Integrated • Market Facing Sales $M $1,167 $1,529 31% – Fourth level Customer Action Teams Customer Focus *Op Inc $M $67 $223 233% » Fifth level • Expand Superhards *Op Inc % 5.7% 14.6% 890 bps • Superhards – PCD & Advance with Knowledge Technology PCBN Solutions Expansion • Implement Emerging Markets Growth Plan • Emerging Market Commit to ExcellenceClick to editOptimization Master To subtitle •styleExpand BIC Capabilities Address Demand Shift (BIC) • Drive New Solutions Growth Grow for Profit • Total Productivity Solutions Provider • Implement Global WIDIA Business Model Ensure • Optimization & Mission Alignment • Sales Force Readiness Effectiveness

* On An Adjusted Basis

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 38 Infrastructure Segment Focused On Share Gain And Geographic Expansion • Click to edit Master text styles Company Strategies Infrastructure Strategies Infrastructure Initiatives Infrastructure Results – Second level

Win the • Market Facing FY10 FY11 CHG • Third level • Pull Through Customer Enterprise Selling Sales $M $717 $875 22% – Fourth level Metalworking Solutions *Op Inc $M $93 $128 38% • Superhards» Fifth level& *Op Inc % 13.0% 14.6% 160 bps Abrasion and • Execute Surface Advance with Technology Strategy Technology Corrosive Resistant Coatings • Strengthen Core With • Product Technology (PCD) Commit to Development & ExcellenceClick to edit Master subtitle •styleInternational Expansion Migration (PCD & (China and Australia) Surface Technology) • Asia-Pacific Growth Grow for • Adjacent Market Profit Plan Growth (Recycling & Renewable Energy) • Talent Development And Ensure Sales Force Mission • Global Market Effectiveness Readiness Expansion

* On An Adjusted Basis

– Second Endlevel Markets Brand/Channel Solutions • Third level – FourthEarthworks level » Fifth level Energy

General Engineering

Customers Services

Click to edit Master subtitle style Indirect WIDIA

Aerospace & Defense

Kennametal Direct Kennametal

Bundled Packages Bundled

Standard Products Standard

Kennametal Indirect Kennametal

Engineered Products Engineered Machine Tool Builders Tool Machine

Transportation

Delivering Industry Depth, Product Knowledge, Application Expertise

• ClickMetalworking to edit Market Master text styles Executing The Strategy – Second level • Established Natural Trading Area Targets By Region • Third Directlevel Direct 30% • Implemented Training Program To 35% Indirect – Fourth level Leverage The “Power Of The Portfolio” 65% Indirect » Fifth level70% • Building The Asian And Eastern European Channel Infrastructure 2011 2016 $10B Indirect Market $15B Indirect Market • Strengthening The Channel Network WIDIA Products Group • Signed Fastenal™ As The North American National Partner Click to edit Master subtitle style • Terminated 280 Non-productive Distributors 37% $500M • Executing Channel Partner Rewards Growth Program • Building Pipeline Of Targeted Distributors

2010 – 2011 2016

WIDIA Is Currently Our Fastest Growing Brand

• Click to edit MasterTungsten text Price styles Escalation*

– SecondTungsten level APT $ per MTU $500 $400• Third level $300 – Fourth level $200 » Fifth level $100

* London Metal Bulletin Click to edit Master subtitlePrice Increase style Timeline

OCT „10 APR ‟11 JUL „10 JAN „11 JUL „11

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 42 Strong Sales Growth In All Segments And Geographies • Click to edit Master text styles Sales –MixSecond of $2.4B Total level Sales 28% Organic Growth $518M Of Organic Growth • Third level 32% Infrastructure 21% Infrastructure 29% Industrial – Fourth36% level Industrial 64% » Fifth level 71%

Industrial Infrastructure Reporting Segments Reporting

Click to edit Master subtitle33% style W. 27% W. Europe N. 25% Europe N. 28% America 28% America 46% 42%

ROW ROW

26% 30% Geographies ROW W. Europe N. America

•EarthcuttingClick to edit SpecialtyMaster & Defense text styles Energy Surface Solutions – Second level O&G Components Tri-braze Dura-plus® Land And Sea Based Next Evolution Of Components Made To AP Abrasion/ Impact Resistant • Third level Institute Standards. Alloy Steels. – Fourth level Tungsten Carbide »BlanksFifth For level Wire EDM Road Razor ECO™ New Corrosion-resistant Reduces Costs While Delivering Grades. Performance

2012 Kennametal Innovations - Spring Release 2012 WIDIA Advances – Spring Release NewClick Product to Introduction edit Master subtitle styleNew Product Introduction

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 44 Moving From Products To Component Systems; Aligning With Customers‟ Expectations • Click to edit Master text styles • Delivering– Second Component level And Systems Solutions On An Enterprise Scale • Machined Parts With Precision Surface Management To Provide Entire Component• Third And Systemslevel Solutions – Fourth level » Fifth level

Click to edit Master subtitle style

Brake Systems

Integrated Block Systems Crankshaft Systems

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 45 Reducing Production Time 85% On Landing Gear Component At Major Aerospace Customer • Click to edit Master text styles Collaboration With Machine Builder And Boeing, A Tailored “Total Tooling Solution” For – Second level Titanium Landing Gear Beams • Third level – Fourth level » Fifth level

Click to edit Master subtitle style

Result: Process Time Reduction Of 88 Hours Per Part !

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 46 Leveraging Proven Component Solutions Across Global Aerospace Industry Supply Chain • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level

Click to edit Master subtitle style

Global Reach: This Proven Solution Has New Kennametal HARVI ULTRA Designs Expanded To Russia Pulling Through 14,000 Inserts Per Month…

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 47 Increasing Productivity By 60% While Solving Complex Energy Problems • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level

Click to edit Master subtitle style

Tooling Solution: 11” Dia X 3.75” Wide Slotting Cutter Energy Customer • 54.45 Cu In / Minute MRR Proprietary Work Piece • 1006 Cu In Of Material To Remove • Total Weight Removed = 284.5 Lbs.

Result: 100+ Machining Hours Reduced To <40 Hours Per Piece

• Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level

Click to edit Master subtitle style

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 49 Building Enterprise Growth Opportunities Through Improved Tools And Effectiveness • Click to edit Master text styles

– Second level •Clear Go-to-market Strategy •Aligned Roles And • Third level Global Responsibilities Teams •Key Account Management – Fourth level •Channel Alignment •Planning And Deployment » Fifth level

Growth •Sales & Operational Planning Through •Lean Methods Standard •Compensation Model Improved Sales Processes Force •Sales Processes Click to edit Master subtitle style •Marketing Linkages Effectiveness

•Pipeline Potential •Voice Of The Customer Tools & •Performance Metrics •Value Selling Productivity Reporting Solutions •Win/Loss •Productivity

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 50 Company Profitability Exceeds Pre-Recession Records • Click to edit Master text styles – Second level • Third level • Market Facing Operating Structure – Fourth level • Customer Centric» CultureFifth level FY08 FY11 • Strong Product And Solutions Pipeline Sales $M $2,590 $2,403 GM % 35.0% 36.8% • $170M In Permanent Cost Reductions EBIT* % 11.6% 14.1% • 15 Plant Closures Click to edit Master subtitle style FOCF* $119 $157 • 20% Fewer Employees * On An Adjusted Basis • $39M More EBIT* On $187M Less Sales

“Manufacturing Only Halfway Back From Great Recession,” Daniel J. Meckstroth, Ph.D., Chief Economist and Director of Research MAPI

ClickFrank to Simpkins edit Master subtitle style Vice President and Chief Financial Officer

©2011©2011 Kennametal Kennametal Inc. Inc. | |All All rights rights reserved. reserved | 52 Exceeding Kennametal's Commitment From September 2010 Analyst Day • Click to edit Master text styles September 28, 2011 – Second level  Market Growth – 28% Organic Growth – 5X IPI – • Third level Outpaced Expectations  Strategic Initiatives – WIDIA/Indirect Growth, New – Fourth level Products > 40% Of Sales, ROW Growth » Fifth level  Lean/Productivity – More Than Offsetting Inflation  Restructuring – Incremental Benefits Ahead Of Prior Forecast

Click to edit Master subtitle style

 PWC Reduction September 29, 2010 29, September  Reduced Manufacturing Footprint

 CAPEX In Line With Depreciation

 Tax Rate In Low 20% Range

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 53 Significant Progress Made Since September 2010 Review; Solidifying Our Path To 15 X 15 • Click to edit Master text styles – Second level • EPS, EBIT % And ROIC% Set New Key Performance Indicators Annual Records Fiscal Year 2011• (US$-Millions)Third level • Completed Organizational – Fourth level Fav/(Unf) Realignment FY2011 vs. LY » Fifth level • Drove Functional Excellence Sales $2,403 28% Across Enterprise

EBIT * $338 127% • Upgraded Standard SAP System % of Sales 14.1% 620 bps Globally EPS * $2.98 171% • Overcame Unprecedented Raw ClickCash from to Operations edit Master subtitle$231 style40% Material Cost Inflation

Return on Invested Capital * 14.8% 840 bps • Completed Aggressive Restructuring Program; Expect To Debt/Capital 15.9% 430 bps Deliver $170m Annual Savings

• Strengthened Financial Position And Improved Flexibility

* On An Adjusted Basis

Sales– Second ($M) level EBIT* (% of Sales) Earnings Per Share*

• Third level 14.1% $2,590 $2.98 –$2,403Fourth level $2.76 » Fifth level11.6% $2,000 $1,884

7.9%

Click to edit Master subtitle4.7% style $1.10 $0.80

FY08 FY09 FY10 FY11 FY08 FY09 FY10 FY11 FY08 FY09 FY10 FY11

* On An Adjusted Basis

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 55 Further Strengthening Balance Sheet To Increase Operational And Strategic Flexibility • Click to edit Master text styles Primary Working Capital Return on Invested – Second level Debt to Capital % of Sales* Capital*

34.4% • Third level – Fourth level 27.7% 30.3% 28.8% 14.8% 27.5%» Fifth level 12.3% 20.2%

17.2% 15.9%

Click to edit Master subtitle style 6.4% 4.4%

FY08 FY09 FY10 FY11 FY08 FY09 FY10 FY11 FY08 FY09 FY10 FY11

* On An Adjusted Basis

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 56 Strong Focus On Accelerating Cash Cycle; Continued Structural Investment Through The Recovery • Click to edit Master text styles

– SecondOperating level Cash Flow CAPEX

• $280Third level – Fourth level » Fifth level$231

$192

$165 $163

Click to edit Master subtitle style $105 $83 $57

FY08 FY09 FY10 FY11 FY08 FY09 FY10 FY11

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 57 Restructuring Investment Delivering Permanent Annual Savings • Click to edit Master text styles Costs Per Year ($M) $152M Savings Per Year ($M) $170M Total – Second level Annualized Program Incremental Benefit • Third level Cost $28 $73 – Fourth level $49 » Fifth level $89 $22 $137 $8 $0 $48 $48

4QFY08 FY09 FY10 FY11 4QFY08 FY09 FY10 FY11 Click to edit Master subtitle style  22 Manufacturing Facilities Closed / Divested

 20% Global Headcount Reduction

 Reorganization Driving Functional Leverage Across Enterprise

 “Right-Sized” To Support $3B Sales Without Significant Investment

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 58 Cost Reduction Goals Continue To Be Achieved With Additional Savings Planned • Click to edit Master text styles – SecondS G &level A (% Of Sales) Continuing Focus: • Third level 25.3% • Achieve Top Quartile 24.5%– Fourth level 22.9% Performance » Fifth level22.3% 20.0% • Reduce G&A With Functional Excellence Model

• Self Fund Market Facing Click to edit Master subtitle style Opportunities To Gain Share (Fund “S” By Reducing G&A)

Goal: Drive SG&A Costs To FY08 FY09 FY10 FY11 Goal ≤ 20% Of Sales

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 59 Transformation Accelerated Margin & Return Performance Through Recovery • Click to edit Master text styles – Second level EBIT* % ROIC* % 17.4% • Third level 14.8% – Fourth level 14.1% 14.8% » Fifth level 11.8% 12.9% 12.2% 11.2% 10.9% 10.2% 10.9% 9.1% 8.8% 8.2% 6.8% 6.4% Click to edit Master subtitle4.7% style 4.4%

2.7% 2.2% 0.4% -0.4% 0.1% -0.4% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

* On An Adjusted Basis

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 60 Breaking Through To Achieve Higher Performance • Click to edit Master text styles Breakthrough EBIT* (% Of Sales) EBIT – Second level Performance 14.1% 12.8% EBIT • Third level 12.8% Previous 12.3% High – Fourth level 11.6% » Fifth level

6.2% 5.2% Click to edit Master subtitle style 4.7%

* On An Adjusted Basis

• ClickActuals to edit Master text styles Going Forward Scenarios

Sales ($M) Sales ($M) – Second level $3,000 $2,600 - $2,700 • Third$2,403 level – Fourth level EBIT % $2,000 $2,000 Mid – High EBIT* »14.1%Fifth level Teens EPS* $2.98 EPS $3.50- $3.80

EBIT* 4.7% EBIT 10-12% EPS* $0.80 EPS > $2.00 Click to edit Master subtitle style

FY09 FY11 FY12 Guidance * On An Adjusted Basis Assumes Current Share Count

• Aligned Brands and Channels • Retained Cost Reduction • Reduced Manufacturing Footprint • More Flexible Structure • Decreased SKU’s Lowered Breakeven Point

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 62 Disciplined Capital Allocation And Substantial Reinvestment • Click to edit Master text styles –PrioritySecond Uses levelOf Cash Capital Allocation

• ThirdDividends level $287 – Fourth level $546M Share Returned To $259 Repurchases» Fifth level Shareholders $245 Inorganic / M&A $738 Reinvest To Add Value – Reinvest CAPEXto Add Value - Net (CAPEX) ~$1B Reinvestment ClickCapital Structure to edit Principles Master subtitleIn style Business • Investment Grade Ratings • Diversified Funding Sources • Ensure Liquidity CAPEX, Net M&A, Net Share Dividends • Maximize Operating Flexibility Repurchase

2003 - 2011 $‟s in millions

Note: Share Repurchases Are Net Of Stock Issuance

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 63 Investment Grade Ratings Maintained Through Crisis • Click to edit Master text styles Improved Liquidity – Second level

Credit Ratings • ThirdS&P levelMoody‟s Fitch $486

Rating –BBBFourth levelBaa2 BBB $416 » Fifth level Outlook Stable Stable Stable $338 $313

$220 Jun 30, $‟s in millions, except as noted % of Capital 2011 Click Cashto edit Master$205 subtitle style $108 $500 M Bank Revolver - -

Public Notes* $306 16%

Total Debt $313 16%

Jun-09 Jun-10 Jun-11 Debt Net Debt $‟s in millions

* Includes $6M for swap gain

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 64 Performance Continues To Improve • Click to edit Master text styles – Second level Competitive• ThirdEBIT* Performance level Competitive ROIC* Performance Company EBIT % Company EBIT % Company EBIT % Company ROIC % Company ROIC % Company ROIC % FY09 – FourthFY10 level FY11 FY09 FY10 FY11 Joy Global, Inc 19.7% Joy Global, Inc 19.3% Ametek Inc. 20.5% Joy Global, Inc 36.8% Joy Global, Inc 31.3% Sauer-Danfoss Inc. 34.6% Ametek Inc. 18.8% Ametek Inc. 17.8% Joy Global, Inc 20.5% Flowserve Corporation 23.3% Flowserve Corporation 20.5% Joy Global, Inc 29.1% Dresser-Rand Group Inc. 15.7% Teleflex Incorporated » 16.3%FifthPall levelCorporation 17.9% Dresser-Rand Group Inc. 19.9% Donaldson Company, Inc. 17.8% Donaldson Company, Inc.20.4% Teleflex Incorporated 15.4% Pall Corporation 15.9% Sauer-Danfoss Inc. 14.7% Teleflex Incorporated 14.4% Greif Inc. 16.6% Flowserve Corporation17.5% Pall Corporation 15.2% Flowserve Corporation 15.8% Teleflex Incorporated 14.5% Donaldson Company, Inc. 14.0% Dresser-Rand Group Inc. 15.0% Timken Co. 17.2% Flowserve Corporation 14.2% Dresser-Rand Group Inc. 15.0% Kennametal 14.1% Pall Corporation 13.1% Pall Corporation 14.4% Pall Corporation 16.6% Sauer-Danfoss Inc. 12.5% Donaldson Company, Inc. 13.1% Sandvik AB 14.0% Ametek Inc. 12.2% Crane Co. 12.5% Parker Hannifin Corporation16.0% Greif Inc. 11.3% Greif Inc. 11.8% Donaldson Company, Inc. 13.8% Greif Inc. 11.7% Ametek Inc. 10.6% Kennametal 14.8% Lincoln Electric Holdings Inc. 11.2% Pentair, Inc. 11.0% Flowserve Corporation 13.5% Lincoln Electric Holdings Inc.11.3% Parker Hannifin Corporation 9.7% Crane Co. 14.1% Allegheny Technologies Incorporated10.2% Crane Co. 10.7% Timken Co. 13.2% Crane Co. 11.3% Lincoln Electric Holdings Inc.9.7% Lincoln Electric Holdings13.7% Inc. Donaldson Company, Inc. 9.1% Lincoln Electric Holdings Inc. 9.8% Parker Hannifin Corporation12.1% Allegheny Technologies Incorporated9.3% Teleflex Incorporated 8.5% Ametek Inc. 13.5% Pentair, Inc. 9.1% Sandvik AB 9.2% Pentair, Inc. 11.3% Harsco Corporation 8.4% Timken Co. 7.9% Sandvik AB 12.2% Harsco CorporationClick8.7% toParker editHannifin Corporation Master8.8% Crane Co.subtitle11.2% styleParker Hannifin Corporation 8.2% Pentair, Inc. 7.2% Teleflex Incorporated 12.0% Barnes Group Inc. 8.3% Timken Co. 8.8% Dresser-Rand Group Inc. 10.7% Barnes Group Inc. 6.4% Harsco Corporation 6.8% Greif Inc. 11.5% Crane Co. 8.2% Kennametal 7.9% Lincoln Electric Holdings Inc.9.9% Carpenter Technology Corporation6.1% Kennametal 6.4% Dresser-Rand Group Inc.9.4% Parker Hannifin Corporation 8.1% Sauer-Danfoss Inc. 7.7% Greif Inc. 9.7% Timken Co. 5.8% Barnes Group Inc. 6.4% Carpenter Technology Corporation9.0% Carpenter Technology Corporation6.1% Harsco Corporation 7.2% Barnes Group Inc. 8.7% Pentair, Inc. 5.7% Sandvik AB 6.2% Pentair, Inc. 7.8% Timken Co. 5.0% Barnes Group Inc. 6.6% Allegheny Technologies Incorporated7.4% Kennametal 4.4% Sauer-Danfoss Inc. 5.5% Barnes Group Inc. 7.7% Sandvik AB 4.8% Allegheny Technologies Incorporated6.1% Carpenter Technology Corporation6.0% Sandvik AB 1.3% Allegheny Technologies Incorporated4.3% Allegheny Technologies 6.3%Incorporated Kennametal 4.7% Carpenter Technology Corporation2.2% Harsco Corporation 5.3% Sauer-Danfoss Inc. (1.6%) Carpenter Technology Corporation3.1% Harsco Corporation 5.1%

* On An Adjusted Basis Source: Publicly Available Financial Data

©2011 Kennametal Inc. | All rights reserved. | 65 Forward Looking Indicators Continue To Support Reaching 15 X 15 X 2013, One Year Early • Click to edit Master text styles – Second level FY11 Actual FY12 Outlook

Sales• Third level $2.40B $2.63B - $2.68B – Fourth level Organic Growth» Fifth level 28% 10% - 12% EBIT* % 14.1% > 15.0%

EPS* $2.98 $3.50 - $3.80

Click toCash edit Flow Master From subtitle style $231M $360M - $380M Operations Capital Expenditures, $74M $100M Net FOCF* $157M $260M - $280M

* On An Adjusted Basis

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 66 Historical Seasonality Patterns Have Returned • Click to edit Master text styles Earnings Seasonality* – Second level • Third level 1st Half 115% –2ndFourth Half level

» Fifth level 91%

62% 64% 65% 58% 60%

42% 40% Click to edit38% Master36% subtitle style 35%

FY06 FY07 FY08 FY09 FY10 FY11 FY12E -15%

* On An Adjusted Basis

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 67 Financial Summary • Click to edit Master text styles – Second level • Transformed• Third Companylevel Delivering Unprecedented Financial Performance– Fourth level • New Enterprise» Fifth Structure level Focused On Customers • Aggressive Restructuring Program Completed; Yielding Favorable Results • Positioned For Future Growth And Early Achievement Of 15 X Click15 Milestoneto edit Master subtitle style • Financial Position Strengthened And Improved Flexibility • Achieving Breakaway Performance

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©2011©2011 Kennametal Kennametal Inc. Inc. | |All All rights rights reserved. reserved | 69 Long Term Financial Strategy And Management Compensation Aligned With Shareholder Interests • Click to edit Master text styles – Second level • Third6 -10% level Top Line CAGR – Fourth level » Fifth level 15% - 20% Earnings Per Share Growth

$300 - $400M Free Operating Cash Flow Click to edit Master subtitle style Debt To Capital At 30% - 40%

PWC % Of Sales At 20% - 25%

©2011©2011 KennametalKennametal Inc.Inc. | | AllAll rightsrights reserved.reserved. | 70 A Different Company Today • Click to edit Master text styles – Second• Global level Industry Leader; Diversified Mix Of Served End Markets; Powerful Brand Portfolio • Third level • –BalancedFourth level Geographic Presence; Strong Growth Prospects From» FifthDeveloping/Emerging level Markets

€ ¥ • Consumables Business Model; Attractive Annuity Streams Of $ Revenue Click to edit Master subtitle style • Record Of Innovation; New Product Introductions At Market- leading Pace

• Compelling Financial Profile; Less Cyclicality; Streamlined Cost Structure

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For information, please» contact:Fifth level Ms. Quynh McGuire Director, Investor Relations Kennametal Inc. 1600 Technology Way Latrobe, PA 15650 Telephone: 724-539-6559 ClickEmail: to [email protected] edit Master subtitle style