The Welding Experts®

Lincoln Electric Holdings, Inc.

Q4 & Full Year 2016 Earnings Conference Call

February 14, 2017

Christopher L. Mapes Chairman, President & Chief Executive Officer

Vincent K. Petrella Executive Vice President & Chief Financial Officer

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Non-GAAP Measures: Our management uses non-GAAP measures to assess the Company's operating performance by excluding

certain disclosed special items that management believes are not representative of the Company's core

business. Management believes that excluding these special items enables them to make better period-over-

period comparisons and benchmark the Company's operational performance against other companies in its

industry more meaningfully. Furthermore, management believes that non-GAAP financial measures provide

investors with meaningful information that provides a more complete understanding of Company operating

results and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial

measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations

including, but not limited to, their usefulness as comparative measures as other companies may define their

non-GAAP measures differently. Please refer to the attached schedules for a reconciliation of non-GAAP

financial measures to the related GAAP financial measures.

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. Forward-looking statements generally can be

identified by the use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,”

“forecast,” “guidance” or words of similar meaning. 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,

which can be found on www.sec.gov or on www.lincolnelectric.com.

Safe Harbor and Regulation G Disclosures

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• Reported sales declined 10.3%, or 7.6% excluding Venezuela, on sluggish

industrial demand

• Margins resilient: 14.2% Adjusted Operating Income Margin (down 50 basis

points vs. PY adjusted margin)

• EPS of $2.91; Adjusted EPS of $3.29

• Cash flow from operations at $303 million and 113% cash conversion1

• Returned $429 million in cash to shareholders (share repurchases & dividends)

• ROIC of 16.6% (reflects impact of new $350M senior notes in Q4-2016)

Full Year 2016 Highlights Favorable mix, operational execution and lower costs continue to deliver solid margin

and cash flow performance

1 Cash conversion is defined as Net cash provided by operating activities less Capital expenditures divided by Adjusted Net income.

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• Q4 2016 volume declines narrowed to 1.3%, or 0.6% excluding Venezuela in

the prior year

– Improved volume trends across all product areas and all reportable segments

– Strongest volume performance in International Welding +10.4%; Harris Product Group

+3.9%

– Easier year-over-year comparisons, successful commercial initiatives, automation growth

and strength in the retail channel

• Q4 End Market Trends:

– Increasing: Automotive/Transportation, Maintenance & Repair, Pipe Mills

– Steady: General Fabrication, Structural, Pipelines, Offshore, U.S. exports

– Compressing (rates narrowing): Heavy fabrication, Shipbuilding, Downstream oil & gas

Demand Trends Stable in Q4 and into Early 2017

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1 Please review the appendix for reconciliation of non-GAAP measures. 2 Q4-2015 Operating Income includes $0.4 million in rationalization and asset impairment charges, $0.7 million related to Venezuela foreign

exchange losses and $6.4 million related to pension settlement charges primarily related to the purchase of a group annuity contract.

Income Statement – Q4 2016

Q4 % of Q4 % of YoY %

$ in Millions 2016 Sales 2015 Sales Change Sales Mix Fav/(Unfav)

Net Sales $ 563.8 $ 568.0 (0.7%) Volume (1.3%)

Gross Profit 197.5 35.0% 196.1 34.5% 0.7% Price 0.1%

SG&A 114.4 20.3% 110.8 19.5% (3.2%) Acquisitions 1.3%

Operating Income2 83.1 14.7% 78.4 13.8% 5.9% FX (0.8%)

Total (0.7%) Adjusted Operating Income1 83.1 14.7% 86.0 15.1% (3.4%)

Interest Expense 7.3 1.3% 9.8 1.7% 25.9%

Ex-Venezuela Income Taxes 24.8 4.4% 22.5 4.0% (10.1%) Volume (0.6%)

Price 0.1%

Effective Tax Rate 31.7% 31.6% (10) bps Acquisitions 1.3%

FX (0.8%)

Net Income $ 53.4 9.5% $ 48.7 8.6% 9.7% Total (0.1%)

Adjusted Net Income1 $ 53.4 9.5% $ 53.8 9.5% (0.8%)

Diluted EPS $ 0.81 $ 0.68 19.1%

Adjusted Diluted EPS1 $ 0.81 $ 0.75 8.0%

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Americas Welding Segment

1 Figures may not sum due to rounding 2 Q4-2015 results include $3.7 million in Net Sales from our Venezuela operation, which was deconsolidated from the financial

statements on 6/30/2016.

Volume performance continues to narrow on easier YoY comparisons and

modest growth in automation. Solid margin performance sustained due to

improved mix and lower costs.

($ in Millions)

Q4

2016

Q4

20152

% YoY

Change Sales Mix1 Ex-VZ

Net Sales $ 370.1 $ 387.3 (4.5%) Volume (5.8%) (4.8%)

Price - -

Adjusted EBIT $ 71.7 $ 79.1 (9.3%) Acq/Div 1.9% 1.9%

FX (0.5%) (0.5%)

Adjusted EBIT

Margin

18.2% 19.4% (120) bps Total (4.5%) (3.5%)

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International Welding Segment

Volumes increase on improved demand trends in portions of Asia Pacific and

in European automation. Margin performance reflects improved mix and fixed

cost absorption and easier YoY comparisons.

($ in Millions)

Q4

2016

Q4

2015

% YoY

Change Sales Mix1

Net Sales $ 130.6 $ 121.2 7.7% Volume 10.4%

Price (0.2%)

Adjusted EBIT $ 7.4 $ 3.3 126.2 % Acq/Div -

FX (2.5%)

Adjusted EBIT

Margin

5.5% 2.7% 280 bps Total 7.7%

1 Figures may not sum due to rounding

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The Harris Products Group

Volumes reflect continued strong growth in the retail channel.

Price reflects increased pricing on higher input costs.

($ in Millions)

Q4

2016

Q4

2015

% YoY

Change Sales Mix1

Net Sales $ 63.1 $ 59.4 6.2% Volume 3.9%

Price 1.5%

Adjusted EBIT $ 6.6 $ 5.7 17.1% Acq/Div -

FX 0.8%

Adjusted EBIT

Margin

10.2% 9.2% +100 bps Total 6.2%

1 Figures may not sum due to rounding

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17.1%

15.6%

Dec 31 2015 Dec 31 2016

Cash Flow from Operations Metrics

Cash Flow from Operations Average Operating Working

Capital to Net Sales Ratio

1 Cash conversion is defined as Net cash provided by operating activities less Capital expenditures divided by Adjusted Net income.

($ in Millions)

1,2

$75 $67

$311 $303

Q4-2015 Q4-2016 Full Year

2015

Full Year

2016

Record working capital efficiency and cash conversion1 at

105% in Q4 and 113% for full year 2016

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Capital Allocation

Capital Allocation1 Q4 2016 Highlights

Capital Expenditures: $11M

Dividend Payout Rate Increase: +10%

Share Repurchases: $53M

Net Debt Position:$(326)M at 12/31/16

Return on Invested Capital: 16.6%

($ in Millions)

$87 $87

$399 $342

$51

$50

$37 $72

Full Year 2015 Full Year 2016

Acquisitions

Cap Ex

Share Repurchases

Dividends

$21 $21

$102 $53

$10

$11

$3

Q4-2015 Q4-2016

$85

$136

$574 $551

1 Figures may not sum due to rounding

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Amanda Butler

Director, Investor Relations Amanda_Butler@lincolnelectric.com

216.383.2534

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Non-GAAP Financial Measures

Non-GAAP Financial Measures: Reconciliation of Operating Income, Net Income and EPS to Non-GAAP Adjusted

Operating Income, Adjusted Net Income and Adjusted EPS

(In thousands, except per share amounts)

(Unaudited)

Please see the following slide for corresponding footnotes

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Footnotes for Non-GAAP Financial Measures: Reconciliation of Operating Income, Net Income and EPS to Non-GAAP Adjusted

Operating Income, Adjusted Net Income and Adjusted EPS

1) The three and twelve months ended December 31, 2015 include net charges primarily related to severance and other related costs. The twelve months

ended also includes charges related to the impairment of long-lived assets and goodwill.

2) The twelve months ended December 31, 2016 reflect a charge (non-cash charge of $34.1 million pretax and $33.0 million after-tax) related to the

deconsolidation of the Company's Venezuelan subsidiary.

3) The three and twelve months ended December 31, 2015 represent the impact of Venezuelan remeasurement losses related to the adoption of new foreign

exchange mechanisms.

4) The three and twelve months ended December 31, 2015 include pension settlement charges primarily related to the purchase of a group annuity contract.

5) The twelve months ended December 31, 2016 reflect reduced income tax expense related to the reversal of an income tax valuation allowance as a result

of a legal entity change to realign the Company’s tax structure.

6) Adjusted operating income, Adjusted net income and Adjusted diluted earnings per share are non-GAAP financial measures. Management uses non-GAAP

measures to assess the Company's operating performance by excluding certain disclosed special items that management believes are not representative of

the Company's core business. Management believes that excluding these special items enables them to make better period-over-period comparisons and

benchmark the Company's operational performance against other companies in its industry more meaningfully. Furthermore, management believe that

non-GAAP financial measures provide investors with meaningful information that provides a more complete understanding of Company operating results

and enables investors to analyze financial and business trends more thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a

substitute for GAAP measures and have limitations including, but not limited to, their usefulness as comparative measures as other companies may define

their non-GAAP measures differently.

Non-GAAP Financial Measures

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Non-GAAP Financial Measures

(In thousands, except per share amounts)

(Unaudited)

1) Adjusted net income and Return on invested capital are non-GAAP financial measures. Management uses non-GAAP measures to assess the Company's operating

performance by excluding certain disclosed special items that management believes are not representative of the Company's core business. Management believes

that excluding these special items enables them to make better period-over-period comparisons and benchmark the Company's operational performance against

other companies in its industry more meaningfully. Furthermore, management believe that non-GAAP financial measures provide investors with meaningful

information that provides a more complete understanding of Company operating results and enables investors to analyze financial and business trends more

thoroughly. Non-GAAP financial measures should not be viewed in isolation, are not a substitute for GAAP measures and have limitations including, but not limited

to, their usefulness as comparative measures as other companies may define their non-GAAP measures differently.

2) Return on invested capital is defined as rolling 12 months of Adjusted net income excluding tax-effected interest income and expense divided by invested capital.

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Segment EBIT

EBIT and Adjusted EBIT Reconciliation – Three Months Ended December 31, 2016 (In thousands)

(Unaudited)

1) As previously announced on February 9, 2016, the Company realigned its organizational structure into three operating segments which

was effective beginning in the first quarter of 2016.

2) EBIT is defined as Operating income plus Equity earnings in affiliates and Other income.

3) Special items within Corporate/Elimination reflect a charge ($34.1 million non-cash) related to the deconsolidation of the Company's

Venezuelan subsidiary in the second quarter 2016. Refer to 'Non-GAAP Financial Measures' for detail on excluded special items.

4) The primary profit measure used by management to assess segment performance is Adjusted EBIT. EBIT for each operating segment is

adjusted for special items to derive Adjusted EBIT.