Slide 1: Brady Corporation F'20 Q3 Financial Results
Brady Corporation F’20 Q3 Financial Results May 21, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 In this presentation, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, p
Slide 3: Managing Through the Pandemic
Managing Through the Pandemic 3 Managing Through the Pandemic • Thank you to all of the Brady employees and front-line workers. • Brady is an essential business. • Our factories are operational around the globe. Brady is financially strong. Strategies to Thrive: • Invest in growth. • Drive sustainab
Slide 4: Q3 F'20 Financial Summary
Q3 F’20 Financial Summary 4 • Sales were $265.9M in Q3 of F’20 compared with $289.7M in Q3 of F’19. – Organic sales declined 6.0%. – Foreign currency translation decreased sales 2.2%. • Gross profit margin of 48.7% in Q3 of F’20 compared with 50.3% in Q3 of F’19. • SG&A expense of $83.2M (31.3% of s
Slide 5: Sales Overview
Sales Overview 5 SALES (millions of USD) $305 $298 $297 $295 $295 $293 $290 $290 $288 $287 $285 $282 $277 $275 $266 $265 $255 Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Organic Sales 1.7% 3.2% 3.2% 2.5% 4.7% 2.3% 2.4% 1.7% (0.4%) (1.2%) (6.0%) Q3 F’20 SAL
Slide 6: Gross Profit Margin
Gross Profit Margin 6 GROSS PROFIT & GPM% (millions of USD) 50.6% 50.3% 50.3% 50.3% 49.9% 50.0% 49.6% 49.5% 49.6% 50% $151 49.3% $150 $147 48.7% $146 $147 $146 $147 $144 $140 $141 $139 $130 45% $125 $100 40% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q3 F
Slide 7: SG&A Expense
7 SG&A Expense SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD) 34.5% $110 34.1% 35% 33.9% 32.3% 32.8% 32.7% $102 $100 31.6% 31.3% 33% $100 $98 30.6% 31.2% $95 30.2% $95 $93 30% $91 $89 $90 $90 $87 28% $83 $80 25% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20
Slide 8: R&D Expense
8 R&D Expense R&D EXPENSE AND R&D EXPENSE AS A % of SALES (millions of USD) $14.0 3.9% 3.9% 3.9% 3.9% 3.9% 4.0% 3.9% 3.8% 3.8% 3.8% 3.6% 3.7% $12.0 $11.7 $11.7 $11.3 $11.3 $11.4 $11.3 $11.1 $11.0 $10.5 $10.5 3.5% $9.8 $10.0 3.0% $8.0 $6.0 2.5% Q1 F'18 Q2 F'18 Q3 F'18 Q4 F'18 Q1 F'19 Q2 F'19 Q3 F'19
Slide 9: Income Before Income Taxes
Income Before Income Taxes 9 INCOME BEFORE INCOME TAXES (millions of USD) $50 $45.2 $47.1 $41.6 $42.4 $39.9 $41.0 $40 $37.0 $36.7 $34.8 $35.0 $30 $22.2 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 F'18 F'18 F'18 F'18 F'19 F'19 F'19 F'19 F'20 F'20 F'20 Year on Year Growth 12.2% 20.4% 20.7% 26.0% 14.8% 4.
Slide 10: Net Income & Diluted EPS
Net Income & Diluted EPS 10 NET INCOME PER CLASS A DILUTED SHARE NET INCOME (millions of USD) $0.66 $0.68 $0.70 $0.65 $0.62 $40 $35.0 $36.6 $37.5 $0.58 $34.8 $33.6 $0.60 $0.55 $30.6 $29.2 $0.49 $0.49 $30 $25.8 $26.0 $0.40 $20 $0.26 $13.6 $0.20 $10 $0.08 $4.3 $0.00 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 11: Cash Generation & Uses
Cash Generation & Uses 11 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) CASH FLOWS IN Q3 OF F’20: $70 $65.3 • Cash flow from operating activities was $42.8M in Q3 of F’20 compared to $52.7M in Q3 of F’19. $60 $53.8 $52.7 $46.8 • Cash flow from operating activities was $50 $42.8 $38.8 signifi
Slide 12: Net Cash
12 Net Cash NET CASH (millions of USD) DEBT STRUCTURE (millions of USD) $300 $250 $245 $240 $229 Interest Apr. 30, 2020 July 31, 2019 Rate Balance Balance $200 $188 $190 Private Placements: EUR-den. 2010 Series (10-yr.) 4.24% $ (48.9) $ (50.2) $151 $150 $138 TOTAL DEBT $ (48.9) $ (50.2) $129 Cash an
Slide 13: Guidance
Guidance 13 Withdrawing financial guidance for the balance of fiscal 2020 due to the lack of visibility. We intend to: • Continue investing in ROI-positive capital expenditures that improve capabilities or drive automation. • Continue paying dividends. • Continue opportunistically repurchasing share
Slide 14: Identification Solutions
Identification Solutions 14 Q3 F’20 vs. Q3 F’19 (millions of USD) Q3 F’20 SUMMARY: Q3 F’20 Q3 F’19 Change • Revenues declined - (9.7%): • Organic = - (8.2%). Sales $ 193.2 $ 214.0 - 9.7% • Fx = - (1.5%). Segment Profit 36.4 39.9 - 8.8% • Organic sales decreased due to an overall slowdown in economic
Slide 15: Workplace Safety
Workplace Safety 15 Q3 F’20 vs. Q3 F’19 (millions of USD) Q3 F’20 SUMMARY: Q3 F’20 Q3 F’19 Change • Revenues declined - (3.9%): • Organic growth = + 0.2%. Sales $ 72.8 $ 75.8 - 3.9% • Fx = - (4.1%). Segment Profit 4.4 6.1 - 28.2% • Organic sales increased in both Europe and Segment Profit % 6.0% 8.0
Slide 16: Investor Relations
Investor Relations 16 Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our web site at www.bradycorp.com