Lincoln Electric Holdings, Inc. Update BB&T Commercial and Industrial Conference – March 21, 2013

Vincent K. Petrella SVP and Chief Financial Officer

2

Safe Harbor -- Forward-Looking Statements

Statements made during this presentation which are not historical

facts may be considered forward-looking statements. Forward-

looking statements involve risks and uncertainties that could cause

actual events or results to differ materially from those expressed or

implied. For further information concerning issues that could

materially affect financial performance related to forward-looking

statements, please refer to Lincoln Electric’s quarterly earnings

releases and periodic filings with the Securities and Exchange

Commission.

3

A Proud History

4

World-Class Arc Welding and Cutting Products

Welding

Consumables

65% Welding

Equipment

35%

MIG & TIG consumables

Stainless, Nickel & High Alloy

consumables, Submerged Arc,

Stick Electrodes, Cobalt

Flux-Cored Wire Gas regulators, welding

guns and torches,

accessories Plasma cutter

Virtual and Automated welding

Welder/Generator –

Engine Drive

Power Wave

AC/DC 1000

Fume extractor

Power Wave®

AC/DC 1000® SD

Soldering

and

Brazing

alloys

CNC Cutting

System

Orbital TIG welding

5

Consumables

MEXICO CITY, MEXICO

Brazing Consumables

SAO PAULO, BRAZIL Consumables

JAKARTA, INDONESIA

Equipment

BIELAWA, POLAND

Consumables

LISBON, PORTUGAL

Consumables

ISTANBUL, TURKEY

Consumables

OREL, RUSSIA Consumables &

Gas Apparatus

DZIERZONIOW, POLAND

Consumables

LUAN COUNTY, CHINA

Consumables

JINZHOU, CHINA

Consumables

ZHENGZHOU, CHINA

Consumables

NANJING, CHINA

Equipment & Consumables

SHANGHAI, CHINA

REGIONAL HEADQUARTERS

Asia Pacific

SHANGHAI, CHINA

Consumables

CHENNAI, INDIA

Consumables

MISSISSAUGA, CANADA

REGIONAL HEADQUARTERS

North America

CLEVELAND, OHIO

Gas Apparatus

LOS ANGELES, CALIFORNIA

Pipe Cutting Equipment

SAN DIEGO, CALIFORNIA

Consumables & Accessories

TIJUANA, MEXICO

Equipment & Consumables

TORREON, MEXICO

Equipment, Consumables

& Automation

CLEVELAND, OHIO

Equipment & Consumables

TORONTO, CANADA

Consumables

MASON, OHIO

Gas Apparatus

GAINESVILLE, GEORGIA

Consumables

BOGOTA, COLOMBIA REGIONAL HEADQUARTERS

Europe, Middle East,

Africa & Russia

BARCELONA, SPAIN

Consumables

GUARULHOS, BRAZIL

Consumables

MTSENSK, RUSSIA

Consumables

SHEFFIELD, UNITED KINGDOM

Consumables

CHERTSEY, UNITED KINGDOM

Consumables

ROUEN, FRANCE

Equipment

GENOVA, ITALY

Consumables

AREZZO, ITALY

Automated Welding Systems

SAN DIEGO, CALIFORNIA

REGIONAL HEADQUARTERS

South America

SAO PAULO, BRAZIL

CNC Cutting Equipment

RENO, NEVADA

REGIONAL HEADQUARTERS

Harris Products Group

MASON, OHIO

Consumables

BALTIMORE, MARYLAND

Consumables

MARACAY, VENEZUELA

Consumables

MENTOR, OHIO

GLOBAL HEADQUARTERS

CLEVELAND, OHIO

Consumables

PORT TALBOT, WALES

Pipe Mill Welding Systems

ESSEN, GERMANY

Consumables

NIJMEGEN, NETHERLANDS

Accessories

ANAHEIM, CALIFORNIA

Automated solutions

FT. LORAMIE, OHIO

45 Manufacturing Facilities in 19 Countries

Lincoln Electric: Dynamic and Evolving Company

GLOBAL HEADQUARTERS

Lincoln Electric

Cleveland, Ohio USA

REGIONAL HEADQUARTERS

North America

Cleveland, Ohio USA

South America

Sao Paulo, Brazil

Europe, Middle East, Africa & Russia

Barcelona, Spain

Asia Pacific

Shanghai, China

Harris Products Group

Mason, Ohio USA

6

Global Sales Shift

2012 2002

North

America

67%

North

America

55%

International 30%

International 30%

Total BRIC 15% Total BRIC 3%

BRIC= Brazil, Russia, India, China

North America = United States, Canada, Mexico

Sales by Destination

7

Lincoln Electric – 2020 Vision

8

Strategic Growth Drivers

Leverage breadth of product and process solutions

Penetrate critical global end markets and regional segments

Develop distribution channels

Invest in new product development

Grow and train our own technical sales force

Focus on continued cost improvement and operational excellence

9

Leverage Products & Process Solutions

Across the Globe

Penetrate Critical

Global End Markets

= +

= + +

+ + = + +

= + + +

=

10

Develop Key Channels

Direct to

End User

Industrial

Distribution

Rental

Network

Retail

• 200 person technical sales force in North America

• Similar program launched globally

11

Innovation is a Major Driver

• Lincoln Electric has the

industry’s most

comprehensive R&D

program.

• Approximately 50% of

equipment sales in 2012

were new products

developed and introduced

over the last 5 years.

• Industry leading technology

Lincoln leads the arc welding industry in new product introductions

$37$33

$22$20$19 $24 $26 $27 $28 $29

$0

$5

$10

$15

$20

$25

$30

$35

$40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

R&D Expenditures

$ in M

illio

ns

12

Operational Excellence

• Lean manufacturing

• Six Sigma

• ISO 14001

• Cost savings programs

13

$20 Billion Global Arc Welding Market

Global & Regional Market Share

0%

5%

10%

15%

20%

25%

30%

35%

40%

0% 2% 4% 6% 8% 10%

North America

$4.2 Billion

Latin America

$1.6 Billion Europe & RAM

$5.2 Billion

Asia Pacific

$9.0 Billion

Growth Rate

Ma

rke

t S

ha

re

14

Others

HyundaiFronius

Kemppi

OTCHypertherm

BohlerAir Liquide

Victor

Technologies

(Thermadyne)

MesserPanasonic

AtlanticBig Bridge

KobelcoGolden Bridge

ITW

ESAB

(Colfax)

Lincoln Electric

* Amounts based on the Company's estimate of the total market and include sales of equity affiliates

Global Market Share

The top 3

companies

compete in

Equipment and

Consumables

Global Competitive Landscape

15

Heavy Fabrication

9%Shipbuilding

8%Automotive

8%

General

Fabrication

31%

Power Gen /

Process

14%Pipe Mill

3%Maintenance &

Repair

6%

Structural

14%

Offshore

4%

Pipeline

3%

$20 Billion Welding Market Segments

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Economic Variables Impacting Industry

Share of World Crude Steel Production

Industrial Production/Capacity Utilization (U.S.) WSA Global Steel Production

Purchasing Manager’s Index

Source:

WSA

17

Electro-Arco

LEIM

SLE

JINZHOU JINTAI

WELDING METAL

CO LTD

Heli

4.9%

5.8%5.3%

3.0%3.0%

2.0%

3.4%

7.0%

2.3%

0%

2%

4%

6%

8%

2004 2005 2006 2007 2008 2009 2010 2011 2012

Acquisition Growth % of Sales

MGM

Global Acquisition Strategy Expands Footprint

Tennessee

Rand

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2012 Highlights

• 2012 sales and EPS highest level in Lincoln’s

history

• Expanded margins; increased return on

invested capital; and generated record cash

flows

• Successful execution of ongoing global growth

and operational improvement strategies

• Initiatives to reduce costs, sharpen operations

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Net Sales

$2,853$2,695

$2,070

$1,729

$2,479

$2,281

$1,972

$1,041

$1,333

$1,601

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dollars in Millions

20

Q4 Sales -- 2011 vs. 2012

$684.6$694.5

$0

$200

$400

$600

$800

Q4 2011 Q4 2012

Dollars in Millions

(1.4%)

21

LECO Historical Sales Mix Trends

13.2%

4.2%

15.5%

6.8%

-29.80%

14.8%

1.3%

9.5%

8.0%

2.9%

3.7%

6.9%

1.7%

2.3%

7.0%

3.4%

2.0%3.0%

5.8%

4.9%

3.2%

2.6%

-2.0%

14.1%

-3.9%

-0.5%

0.4%

7.8% 3.0%

5.3%

3.1%

1.9%

1.3%0.9%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Volume Price Acquisition FX

20.1% 23.1%

* 8.7%

15.7%

2011

(30.2%)

2009 2008 2007 2006 2005 2012

30.2%

* 19.7%

2004

-2.9%

28.1%

* Differences due to rounding

2010

5.9%

22

Operating Income Percentage

11.9%

13.3%

0%

3%

6%

9%

12%

15%

Q4 2011 Q4 2012

11.0%

13.1%

9.1%

7.0%

12.7%12.2%11.5%

9.6%

8.3%

6.7%

0%

3%

6%

9%

12%

15%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Historical Trend

Q4 2011 vs. Q4 2012

Excluding Special Items

Excluding Special Items

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North

America

Welding

Europe*

Welding

Asia

Pacific

Welding

South

America

Welding

The

Harris

Products

Group

Total

FY2012

Organic Sales

Growth** +11% (6)% (14)% +9% flat +3%

FY2012 EBIT

Margin (excluding special

items)

17.1% 8.0% 2.1% 11.3% 8.6% 13.3%

YoY Margin

Performance (bps)

+130 +110 +140 +310 +150 +200

Improving Segment Margin Performance

* “Europe” includes Middle East, Africa and Russia

** “Organic” refers to volume and price performance

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$257

$81$55

$122

$175

$203 $212

$49

$130

$217

$0

$50

$100

$150

$200

$250

$300

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

($ in

millio

ns

)Net Income

25

Q4 Adjusted Net Income – 2011 vs. 2012

$65.9

$57.7

$0

$10

$20

$30

$40

$50

$60

$70

$80

Q4 2011 Q4 2012

($ in

millio

ns

)

Excluding Special Items

14.2%

26

$0.62

$0.81$0.80

$0.44

$0.05

$0.17

$0.32$0.32$0.29

$0.39

$0.45

$0.50

$0.68 0.68

0.76

0.81 0.80 0.79

$0.66

$0.39

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

EP

S

$0

$100

$200

$300

$400

$500

$600

$700

$800

Sale

s

EPS Sales

Diluted Earnings Per Share Progression

Beginning of

Recession

Beginning of

Upturn

(EXCLUDING SPECIAL ITEMS)

2008 2009 2010 2011 2012

27

Operating Cash Flows: Consolidated Trending

North

America $257.4 $250.4

$157.0 $193.5

$327.5

($24.5)

$158.3

($29.5)

($110.5)

$102.2

($150.0)

($100.0)

($50.0)

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

2008 2009 2010 2011 2012

Operating Cash Flows Change in Working Capital

27

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Cash Flow

• Strong operating cash flows

• Improvement in working capital

management

• Net cash balance $266.2 million

Debt

• Debt/invested capital ratio 1.5%

• Net cash to total capital 19.3%

Pension Contributions

• $10.1 million for the quarter and

$63.4 million YTD

Cash Flow/Net Cash

Operating Cash Flows Dollars in Millions

29

Capital Allocation

Dollars in Millions

Dividends

• 17.6% dividend rate

increase in 2012

Capital Expenditures

• Focused on cost

improvements

Acquisitions

• Kaliburn

• Tennessee Rand

• Wayne Trail

• Weartech

Return on Invested Capital

• 18.7% at Dec. 31, 2012

Share Repurchases

• $81.0 million in 2012

Capital Allocation 2007-2012

30

Summary

Good earnings growth

Strong cash flows, improving working capital

management

Active share repurchase program

Consistently reinvest in the business through strategic

capital expenditures

Targeted acquisitions improved geographic and product

line portfolio

31