Kennametal Corporate Safety Overview Presentation · Prepared by Kenexa/IBM • The safety and physical working conditions (space, lighting, noise, etc.) where I work are good. 86%

© 2015 Kennametal Inc. l All rights reserved. l Proprietary and Confidential

Kennametal Corporate Safety Overview Presentation

100% Safe at KennametalNicole AgrudaMarch 1, 2016

© 2016 Kennametal Inc. l All rights reserved. l Proprietary and Confidential l 0

01WHO WE ARE

OUR COMPANY

13.000EMPLOYEES

>60 COUNTRIES

$3 BILLION IN REVENUES

80.000CUSTOMERS

4.200ACTIVE PATENTS

We Are A Global Leader In Tooling & Wear-Resistant Solutions serving

diverse industries

02WHAT

WE DO

AEROSPACE SOLUTIONS

Specialty parts for wear applicationsin aircrafts and rotorcraftsHigh-purity powders and surface finishing capabilities

Super Alloys Machining Solutions

Component Specific Expertise

Sustainable Solutions

For A New Generation

Metalworking tools for engines, airframes and accessories

EARTHWORKS SOLUTIONS

Trenching

Foundation Drilling

Surface Mining

Wear Protection

Proven Reliability -

Your Solid Choice

Road Milling

Underground Mining

Forestry, Recycling & Agriculture

ENERGY SOLUTIONS

Stellite Components, Materials And Coatings

Process Industries Wear Solutions

Energy Is Everywhere.

And So Are We.

Production and Completion Process Component Solutions

Drill String Component Solutions

Wear Resistant Surface Technologies

Power Generation Wear Solutions

TRANSPORTATION SOLUTIONS

Superhards: PCD and PCBN

Fine Machining & Precision Finishing

Turbo & Fuel Systems Machining

Crankshaft Machining Solutions

Ready For The Next

Machining Era

Total Package Solutions

Precision Surface Technologies

Braking & Chassis Solutions

GENERAL ENGINEERING SOLUTIONS

Advanced materials and surface treatments

Local Delivery of Global Solutions

Tooling Management programs

Make A Difference By

Thinking Differently

Productivity-Driven Leading Edge Technologies

High-Temp Alloys

Optimized Channel Partner Network

03HOW WEWIN

COMPETITIVE DISTINCTIONS

100% SAFETY • Safety is our priority• Safety is in our DNA• Every employee is

part of our 100% Safe Program.

• Every minute. Every day.

OUR PEOPLE• Diverse and inclusive

workforce• Highest employee

engagement• Highest standards of

ethics and integrity

SUSTAINABILITY• Robust environment,

health and safety system• Corporate Volunteering

and technical education programs giving back to

our communities

INNOVATION• World-class product

development process • Innovations setting new

standards• Significant increase of

customers’ productivity


04100%Safe

Culture

Building a Safety Culture

Management is responsible for safety


Employees don’t come to work with the intention of getting hurt or killed…

They do so because:1. Management did not provide a safe work

environment2. Management did not properly influence

their behavior

The Safety Passport

Visitor Policy

PPE Requirements• Vests

Evacuation Procedure

Emergency Contacts

Other Safety:• Jewelry, hair, prohibited areas

Signed annually by all visitors


100% Safe Culture

100% Safe: pursuing a goal of zero injuries, illnesses, and incidents by living the belief that all are preventable. We will pursue the goal of zero through senior leader ownership, preventative actions and processes, and by establishing leadership roles for employees in safety.

Voice of the Employee, Traverse CityPrepared by Kenexa/IBM

• The safety and physical working conditions (space, lighting, noise, etc.) where I work are good. 86% favorable 201379% favorable 2010

• Kennametal is committed to employee safety97% favorable 201393% favorable 2010

• Kennametal is a safe place to work97% favorable 201393% favorable 2010


Management Based Safety (MBS)

Manager daily Safety WalkdownsSimilar to a Gemba walk, but focused solely on safetySafety Stand Ups & Stand Downs

Find & Fix Manager ProgramFind & Fix Employee ProgramNear-miss reporting MBS BoardsDaily Safety Checklists: Pre-flight ChecklistTPM Program: TPM CLIs

Kennametal Meetings Begin with Safety

Incident Reporting:Root Cause Analysis for Recordables & DARTSCall with Directors - findings & better practices shared

100% Safe Quarterly Rewards


Find & Fix Solutions in Action

After an incident at a Kennametal Facility within the U.S., one of our Traverse City employees submitted a Find & Fix to install blue lights on all forklifts.

This has become a company-wide standard.

Per Kennametal Safety Policy, the lights indicate restricted areas 3ft on each side, and 10ft at the front & rear.

BlueSpot available through Morrison Industrial or @ www.linde-mh.com


2016 Find & Fix Rewards


Appeal To Common Wisdom

Source: R Gulati/HBS

68% Reduction in WC Claims, 70% Reduction in WC Costs

Historical WC Costs


Year FY8 FY9 FY10 FY11 FY12 FY13 FY14 FY15 FY16 YTD

# WC Claims 293 194 128 125 75 80 76 92 48 *

WC Costs $2.8M $950K $900K $700K $600K $600K $550K $850K** $80,000

*extrapolates to 72 claims for the full year

**1 claim in FY15 was $300K

THANK YOU!

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Documents

Kennametal Corporate Safety Overview Presentation · Prepared by Kenexa/IBM • The safety and physical working conditions (space, lighting, noise, etc.) where I work are good. 86%