Awareness Campaigns EMEA_Indirect channel Q3 FY14 Playbook Object Call to Action Drive sales and capture market share with KMT latest technology, leveraging Kennametal’s proprietary platforms to increase customer retention! Campaign Timeline Feb. 1st through Apr. 30th , 2014 (A4 and Rodeka) Mill4 till the end of FY14 Customer Goals Penetrate new accounts Improve Indirect Sales in Q3 to fill our Gap to the FY14 plan Improve the EDI/WEB purchasing usage (Kits) KMT products retention on existing accounts Product Goals are to Promote… Proprietary and High-performance products Newest Mill4 platform Continue to support the Perfect-Beyond transition Turning portfolio Applicable to Kennametal Branded products only © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 1 Campaign Details Products Complete Rodeka range (available into the Innovations 2014 catalogue) A4 range, only Beyond grades (no modular tools) Mill4 range (with Starting Kits) Proposal Different proposal based on the products offering, details in the next pages For Indexable milling: Avoid the steel for free in order to increase Margin and Retention The Campaign has been prepared following the process identified by the Marketing © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 2 Program Guidelines • Limited time only. • Offer applies to qualified, standard catalog products only and is not valid in combination with any other offer or on exchange of current Kennametal products. • Program is void where prohibited by law. All local, state, and federal laws apply. • All purchases and exchange values are based on standard current customer pricing. • All orders must be for immediate shipment. Previous purchases, scheduled agreements, contract releases, blanked orders, and price concession orders are not covered by this program. • All transactions are final. No returns are permitted other than defective product. We will, however, issue the customer a credit for the purchased insert portion of the program. • Inventory exchange must be from current customer stock and involve only tooling now used in an ongoing customer operation. • Kennametal Inc. reserves the right to confirm, adjust, or reject the amount of exchange redemption. • Offer subject to change without notice. © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 3 Turning - A4 range Buy 20 “Beyond” inserts and get the tool holder FoC Buy 30 “Beyond” inserts and get the boring bar FoC Only KCU25, KCU10 KCP25, KCP10 Target: increase by 45% # of Beyond inserts during campaign. Drive the Perfect-Beyond transition *Further technical information available on “Innovations Master Catalogue 2013” © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 4 Indexable Milling – Rodeka range Entire RodekaTM range Buy 10 inserts per pocket and get the body with 70% of Disc. Target: increased by 46% # of inserts during campaign. Applicable to all the Inserts and Grades of the range *Further technical information available on “Innovations Catalogue 2014” © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 5 Indexable Milling – Mill4 range Starting Kits to support the Launch! State-of-the-art stepping down capabilities — “step less” solution! © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 6 Mill4 range – Technical information Integrated Wiper facet for best in class floor finisher Multiple Corner Nose Radii available, from 0,4mm up to 1.2mm Screw-on, End-mills and Shell Mills cutters Uneven Pocket Spacing Up to 15.5mm ap capabilities Double-sided insert with 4 cutting edges! High quality steel 48-52 HRC TP15 insert screw (M4) to provide higher reliability and safe process. Internal coolant flow optimized to increase inserts performance © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 7 Mill4 range Screw-on head © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 8 Mill4 range Weldon shank © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 9 Mill4 range Cylindrical shank © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 10 Mill4 range Shell mills © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 11 Mill4 range Spare parts © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 12 Mill4 Inserts geometries Into the Kits Different edge prep. and styles for a wide range of applications and materials © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 13 Mill4 Inserts geometries Recommended Starting Feeds [mm] © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 14 Mill4 Inserts grades Newest Beyond Grades KCSM30 and KCPM40 included into the Mill4 inserts offering! © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 15 Indexable Milling – Mill4 range Mill4 range - Starting Kits 12 Kits as standard on stock with fixed aggressive price* Ø25 mm - Ø63 mm: 1 cutter + 20 inserts Ø80 mm - Ø100 mm: 1 cutter + 40 inserts KC725M and KCPK30 only SGE geometry only * Distributors 20% disc. on disc. group (O1) ** Due to the high request product completely available in stock starting from Mid of February ONLY. Distributors should hurry up and start booking their first kits from now on! Target: Achieve $ 220k of incremental sales. Launch the new double sided shoulder milling platform of KMT. Limited offering part of the Starting Kits © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 16 Indexable Milling – Mill4 range Mill4 range - Starting Kits Details MM# ISO Catalog Description 5594975 5594976 5594977 5594978 5594979 5595300 5595301 5595302 5595303 5595304 5595305 5595306 M4KITD25Z02B25SGE20 M4KITD25Z02A25SGE20 M4KITD32Z03A32SGE20 M4KITD32Z03B32SGE20 M4KITD40Z04S16SGE20 M4KITD50Z05S22SGE20 M4KITD50Z06S22SGE20 M4KITD63Z06S22SGE20 M4KITD63Z07S22SGE20 M4KITD80Z07S27SGE40 M4KITD80Z09S27SGE40 M4KITD100Z08S32SGE40 M4 KIT D25MM Z2 WEL X20 KC725M&KCPK30 M4 KIT D25MM Z2 CYL X20 KC725M&KCPK30 M4 KIT D32MM Z3 CYL X20 KC725M&KCPK30 M4 KIT D32MM Z3 WEL X20 KC725M&KCPK30 M4 KIT D40MM Z4 SHL X20 KC725M&KCPK30 M4 KIT D50MM Z5 SHL X20 KC725M&KCPK30 M4 KIT D50MM Z6 SHL X20 KC725M&KCPK30 M4 KIT D63MM Z6 SHL X20 KC725M&KCPK30 M4 KIT D63MM Z7 SHL X20 KC725M&KCPK30 M4 KIT D80MM Z7 SHL X40 KC725M&KCPK30 M4 KIT D80MM Z9 SHL X40 KC725M&KCPK30 M4 KIT D100MM Z8 SHL X40 KC725M&KCPK30 List price soon in the SAP All the info into the ISO catalogue code © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 17 Questions and Answers Q1 Are all campaigns offered globally? A1 Campaigns are being offered globally based on the need of each individual market. Q2 Are customers / distributors allowed to split a single order into multiple shipments to different end user addresses? A2 No, the campaign offer applies to a single immediate shipment for all items included in the campaign. Q3 Are backorders allowed on an order? A3 Yes, as long as the campaign offering is met, partial shipments and backorders are allowed. Q4 Are modified standards included in the this offer? A4 No, the campaigns are limited to our standard product offering. Q5 Does customer pricing apply for this offer? A5 Yes, system pricing applies. Q6 What if a customer wants to buy from Kennametal but claims we are not price competitive even with the campaign offering? A6 Concessions are permitted for new business only and are restricted to one time! Follow standard concession process and submit competitive information to the Concessions Team. Q7 What if an account is penetrated with new product but inventory levels are insufficient? A7 Qualify the customer's expected new and ongoing usage and submit a SIPPPR form to increase production according to their requirements as necessary. Supply planning will monitor and respond to routine back orders. © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 18 Questions and Answers Q8 Is inventory in place for the items included in the campaigns? A8 Standard replenishment goals apply for A, B, and C types. The nature of this campaign is to penetrate new product segments with existing customers and new customers. The success of the campaigns may produce a spike in demand. Supply planning will monitor the item types sold and quantity increases to adjust manufacturing production. The use of the SIPPPR process and communication is key to address increases in demand. Q9 Is there a limit on quantity? A9 No, because the new customers may want to re‐tool their machine completely Q10 Does the campaign apply to past purchases? A10 No. campaign purchase is applicable to new orders only. Any past orders will not be covered under this campaign Q11 What if a customer needs technical help with tool selection before a sale can be finalized? A11 Contact Customer Application Support or Field Sales Engineer while customer is on the line. © 2014 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 19
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