Pay Transparency Report issued by the Ministry of Labor and Employment

KENNAMETAL DO BRASIL LTDA. (“KENNAMETAL”), registered under CNPJ/MF No. 02.696.800/0001-14, hereby publishes the Pay Transparency Report, in compliance with the new regulations on the matter (Law No. 14,611/2023, Decree No. 11,785/2023, and Ordinance No. 3,714/2023 of the Ministry of Labor and Employment).

For a better understanding of the Report, KENNAMETAL highlights the following:

• The objective of the Ministry of Labor and Employment, through the Report, is to collect statistical data from Brazilian companies to support measures and public policies aimed at promoting pay equity between men and women.
• The Report is a document prepared entirely by the Ministry of Labor and Employment (MTE) and merely replicated by the company.
• The information is extracted from the eSocial system and complemented by a statement on practices and policies submitted by companies through the “Portal Emprega Brasil.”
• The MTE methodology does not take into account relevant particularities of corporate structures, such as different job levels and seniority, length of employment, performance-based compensation, service-time premiums, and collective bargaining adjustments.
• As a result, the preparation of the Report does not allow for an accurate analysis of potential pay differences between specific and equivalent positions, and therefore cannot be used to demonstrate discrimination or pay equalization.
• Kennametal do Brasil adopts pay practices aligned with the market, based on surveys conducted by a specialized third-party firm covering various industries.
• Our compensation policies are founded on the principle of pay equity between men and women, and do not consider factors such as gender, color, race, or religion as criteria for pay determination.