Kennametal : Fiscal Year 2022

Built for

Performance

2022 Annual Report

Financial

Highlights

Sales	2022	2021	2020
in Billions	$2.012	$1.841	$1.885
Sales by
region		n Americas	48%
(2022)		n EMEA	30%
		n Asia Pacific	22%

Sales by	n General Engineering	47%
end market	n Transportation	17%
(2022)
n Energy	16%
	n Earthworks	14%
	n Aerospace	6%

Adjusted	2022	2021	2020
operating	$224	$143	$141
income

in Millions

Adjusted	2022	2021	2020
EBITDA	$364	$276	$271
in Millions
Adjusted	2022	2021	2020
EPS	$1.78	$1.04	$0.94
in Dollars

Corporate

Leadership

Judith L. Bacchus

Vice President and

Chief Administrative Officer

Franklin Cardenas

Vice President, Kennametal Inc.

and President, Infrastructure Segment

Sanjay Chowbey

Vice President, Kennametal Inc.

and President, Metal Cutting Segment

Michelle R. Keating

Vice President, Secretary

and General Counsel

Dr. Carlonda R. Reilly

Vice President and

Chief Technology Officer

Christopher Rossi

President and Chief Executive Officer

Patrick Watson

Vice President and

Chief Financial Officer

John Witt

Vice President and Corporate Controller

Forward-Looking Statements Certain statements in this report relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements may also include words such as "anticipates," "believes," "estimates," "expects," "hopes," "targets," "should," "will," "will likely result," "forecast," "outlook," "projects" or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Kennametal to be different from those expressed in or implied by the forward-looking statements. For further discussion of forward-looking statements, including some of the specific factors that may cause such a difference, see the forward-looking statements and risk factors disclosure included in our 2022 annual report on Form 10-K. Kennametal disclaims any intention or obligation to update or revise any forward-looking statements.

Non-GAAP Financial Information. This document also includes certain non-GAAP (Generally Accepted Accounting Principles) 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 in the section titled "2022 supplemental financial data."

Kennametal 2022 Annual Report 1

Dear Fellow

Shareholders

In Fiscal 2022, the Kennametal team delivered excellent full-year results while navigating manifold headwinds including supply chain disruptions, effects of the conflict in Ukraine, COVID-19 related absenteeism and lockdowns and record- high inflation. Despite these challenges, the team continued to execute our strategic initiatives resulting in strong full-year operating leverage, delivering over 300 basis points of year-over-year improvement and a 660 basis point improvement in adjusted EBITDA since 2016.

Sales increased 9 percent year-over-year to $2 billion, driven by 11 percent organic growth. Adjusted operating income was $224 million or 11.1% margin, adjusted Earnings Per Share (adjusted EPS) was $1.78 and adjusted EBITDA was $364 million or 18.1% margin. We finished the year strong with organic sales in the fourth quarter up 7% year-over-year, and adjusted EPS of $0.53.

We also returned $152 million to shareholders, $85 million in share repurchases and $67 million in dividends.

Built for Performance

Through our modernization investments and on-going Operational Excellence initiatives, we are in an even stronger position to drive greater productivity. Throughout the year we continued to optimize our newly modernized facilities around the world and are poised to benefit further from these investments as volumes increase. And beyond this volume benefit, we will also continue to drive additional productivity and customer service excellence through our Smart Factory, automation and other continuous improvement initiatives.

Our improved cost position and customer service levels through Operational Excellence combined with our Commercial Excellence initiatives to expand into underserved customer segments and applications have put the company in a better position than ever before to drive a larger share-of-wallet with existing and new customers. In the fourth quarter alone, we announced commercial wins in the electric vehicle, semiconductor, aerospace and additive manufacturing spaces. Throughout the year we also progressed in our other strategic growth areas, including mining adjacencies, renewable energy and process industries.

The Innovation Advantage

Our innovative solutions, superior product performance and world-class application engineering continued to give us a competitive edge in the marketplace to gain share. In the pages that follow you will find many examples of how our innovative products help customers transform how everyday life is built. I am proud to share our solutions that helped customers in wind energy, road construction, surface mining, aerospace and everything in between tackle their toughest challenges.

Our Values

This year marks our third Environmental, Social and Governance (ESG) report. At Kennametal we have four core values - safety, respect, integrity and accountability. While our ESG work is aligned with all of them, it is especially evident in our accountability value. We believe that we are accountable to our shareholders,

customers, employees and communities we operate in. l invite you to review our report, which you will find on the ESG page of our Investor Relations website, to progress we are making in environmental, health and safety, diversity and inclusion workforce development, community engagement and other focus areas.

Looking Ahead

In Fiscal 2023 our team will stay focused on executing our strategy. I believe that combination of favorable market trends and our strategic growth initiatives will us for continued and long-term success. I am excited about what is ahead for company, and I look forward to sharing it with you throughout the year.

As always, thank you for your continued support as a Kennametal investor.

Sincerely,

Christopher Rossi

President and Chief Executive Officer

2 Kennametal 2022 Annual Report

Built for Performance

We bring together materials science, technical expertise, innovative thinking and superior customer service like no other. If customers can dream it, we can help them build it.

Engineering the Solutions that Build a Better Tomorrow

We're helping our customers build the future of transportation - today.

From additively manufactured tooling for electric motor housings, to custom tools and designs for driveline components and transmission casings - we bring the technology automotive manufacturers need to machine hybrid and electric vehicles with reliability and unmatched productivity.

Rotors &	Structural
Shafts	Components

		Traditional
		Components
		• Differential
Stator Housing &	Battery	• Gears
• Axles
Transmission Case	Housing	• CV Joint
		• Brakes
		• Drive Train

Customers turn to us for innovative solutions and technical knowledge in renewable energy applications. Our products and application expertise are driving productivity and efficiency improvements for wind energy customers machining everything from turbine rings to power gear boxes. For example, we developed a drilling solution for a prominent wind power forging supplier that increased their productivity by 200% and tool life by 700%.

Innovation Driving Share Gain

In aerospace, we continue to win large share of wallet with tier suppliers. We have expanded our channels supporting our brands and displaced a competitive brand at tier suppliers with our fit-for-purpose tooling.

Our proprietary design and manufacturing technique for pelletizing dies recently won a large-scale production expansion project in the process industry.

We have expanded our wear-resistant solutions to surface mining equipment. We strengthened customer relationships through productivity increases and won significant incremental sales across a broader product portfolio.

Our support of a major oil field services company in the development of higher efficiency well-completion technology resulted in us being named the sole source supplier for our ability to optimize a complex design and manufacturing consistency.

Kennametal 2022 Annual Report 3

Better with Kennametal

Every day, customers around the world rely on our innovation to help them create the products that touch our daily lives. We are ready to solve challenges, reimagine what's possible and help them build - better.

Industry-leading Products

When it comes to tackling those tough road milling jobs - we've got you covered. With the combined benefits of Polycrystalline Diamond (PCD) and a standard road milling tool size, our Road King Diamond Flex™ helps deliver game-changingperformance to customers no matter the road condition, providing

15 to 25 times longer life than traditional tungsten carbide offerings.

Our Fix8™ industry-leading turning technology has eight cutting edges per insert and is ideal for medium machining and roughing. It delivers up to 30% higher metal removal rates and longer tool life.

We have the material and application versatility our customers need to stay productive. The WIDIA WCE™ 4-flutesolid carbide end mill provides advanced geometry features while performing in demanding operations.

Additive Solutions

We bring nearly a century of materials and manufacturing expertise to every layer of the additive process

- from differentiated metal powders and design optimization to rapid prototyping and series production.

GE Additive Beta Partner. We are part of GE Additive's program to further advance Binder Jet capabilities in cemented tungsten carbide. Our metal 3-Dprinted parts have already gained wide customer adoption across a variety of industries such as oil & gas, energy, industrial processing and transportation. Our tungsten carbide and Stellite™ (cobalt chrome alloy) alloys are recognized for their superior wear, heat and corrosion performance.

When combined with additive manufacturing, these proprietary materials can offer a step change in wear and corrosion solutions for some of the most challenging applications.

Proven Performance. We're leading the way in tungsten carbide additive manufacturing with our most corrosion resistant grade for component production yet, KAR85-AM-K.This new grade delivers the best of both worlds - the highly desirable material properties of conventional tungsten carbide with the design flexibility of additive for high performance components that go the distance in the most demanding applications.

FY22 Innovation by the Numbers

23 90+

new innovative products commercially launched

Patents	1,760+	Total active patents
granted		worldwide