Brady Corporation · NYSE:BRC
Brady — Investor Presentation (June 2022)
39 slides from Brady's investor presentation, June 2022
Slide 1: Brady Corporation Investor Presentation
Brady Corporation Investor Presentation May – June, 2022
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements 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: Brady's Mission & Vision
Brady’s Mission & Vision 3 Brady will: Be the expert in safety, identification, and compliance Possess deep knowledge in niche applications Innovate to provide market-leading, high-performance products, complete solution sets, and systems that solve our customers’ most complex safety and identificat
Slide 4: Global Leader with Innovative Solutions Focused on Long-Term Sustainable Results
Summary 4 Global Leader with Leader in niche safety, identification, and compliance markets. Innovative Solutions Diversified customer base, products, and geographic footprint. Strong history of sustainable efficiency gains. Focused on Long-Term Innovation, automation, digital, and geographic expans
Slide 5: Geographical Presence
Geographical Presence 5 ID Solutions: Americas = 66% EMEA = 23% Asia = 11% F’21 Sales by Region (72 facilities in 32 countries) Workplace Safety: 5% EMEA = 54% 13% Americas = 28% Australia = 18% 51% 31% U.S.A. Rest of Americas Europe, Middle East & Africa Asia-Pacific Brazil, Canada, Belgium, Denmar
Slide 6: Brady's Global Divisions
Brady’s Global Divisions 6 Identification Solutions: Workplace Safety: Overview: Overview: • Complete solution sets. • Numerous businesses. • Industrial printers and • Manufacturer of safety high-quality materials. and identification • Factory automation products. focused. • Also, a value-added • Hi
Slide 7: Managing Beyond the Pandemic
Managing Beyond the Pandemic 7 Our Priorities: Strong customer service. Product availability. New product releases. Performance: ID Solutions - Strong growth and profitability in Q3. Workplace Safety - Strong profit improvement in Q3. 14.6% sales growth (9.0% organic) in Q3. Record EPS in Q3. F’22 E
Slide 8: Brady's Track & Trace Solutions
Brady’s Track & Trace Solutions 8 RFID Readers Mobile Acquisitions of Nordic ID and Code Benchtop Barcode Readers Label Automation Expertise Core Brady Portfolio
Slide 9: Social Value is Embedded in our Strategy
Social Value is Embedded in our Strategy 9 Delivering on our ESG Commitments Drives Long-term Shareholder Value Environmental Social Governance Committed to making a Supporting our communities, Committed to performance, material positive impact on employee engagement, accountability, and the highest
Slide 10: Social Value and ESG Highlights
Social Value and ESG Highlights 10 We are Making Significant Progress across all Areas Green Enhance Our Board Products Communities Committees NextLife fully compostable People ID products. Brady is Enhance Our Communities 84 60% Community organizations Percent of board committees the only company w
Slide 11: Summary
11 Summary Accelerating Organic Sales Growth: • Innovation, automation, digital and geographic expansion. • Both divisions are growing organically. • Sales are up 16.6% in the first 9 months of F’22. Shifting our Portfolio into a Faster-Growing End Markets: • Magicard increases our presence in acces
Slide 12: Financial Overview
—— Financial Overview
Slide 13: F'22 – Year-to-Date Results
F’22 – Year-to-Date Results 13 9 Months Ended April 30, 2022 2021 Change Sales $ 978.1 $ 838.6 16.6% Organic Sales Growth (Decline) 9.6% (1.7%) Gross Margin 468.4 413.8 13.2% % of Sales 47.9% 49.3% Research and Development (42.8) (31.4) 36.4% Selling, General and Administrative (285.5) (256.1) 11.5%
Slide 14: Revenues
Revenues 14 Annual Trends (Millions of USD) Year-to-Date (Millions of USD) $978 $1,200 $1,172 $1,174 $1,000 $1,161 $1,145 $1,121 $900 $839 $1,113 $1,100 $1,081 $800 $700 $1,000 $600 $500 9 Mos. Ended 9 Mos. Ended $900 4-30-21 4-30-22 F'15 F'16 F'17 F'18 F'19 F'20 F'21 Organic Growth (1.7%) 9.6% Orga
Slide 15: Gross Profit Margins
Gross Profit Margins 15 Annual Trends (Millions of USD) Year-to-Date (Millions of USD) $600 $700 60% 49.3% 47.9% 50% 49.9% 50.1% 50.1% 49.9% 48.9% 49.0% 47.7% 50% $500 45% $468 $600 $588 40% 40% $579 $414 $558 $559 $558 $561 $400 30% 35% $529 30% $500 20% $300 25% 10% $200 20% $400 0% 9 Mos Ended 9
Slide 16: Research & Development
Research & Development 16 Annual Trends (Millions of USD) Year-to-Date (Millions of USD) $50 3.9% 3.9% 3.9% 4.0% $60 4.4% 3.8% 3.6% 3.7% 4.0% $45 $45 $50 $45 $45 3.5% $43 3.2% 3.1% $40 $41 3.0% $40 $31 $40 3.0% $30 $37 $36 2.0% $35 2.5% $20 $10 1.0% $30 2.0% 9 Mos. Ended 9 Mos. Ended 4-30-21 4-30-22
Slide 17: SG&A Expenses
SG&A Expenses 17 Annual Trends (Millions of USD) Year-to-Date (Millions of USD) 36.1% 36.1% $450 $400 30.5% 34.8% 30% 35% $350 29.2% $423 33.3% $300 $285 $405 $256 $400 32.0% $390 31.1% $250 $388 30.6% $200 $371 25% 30% $150 $350 $350 $100 $336 $50 $0 20% $300 25% 9 Mos. Ended 9 Mos. Ended F'15 F'16
Slide 18: Income Before Income Taxes
Income Before Income Taxes 18 Annual Trends (Millions of USD) Year-to-Date (Millions of USD) $180 $138 $171 $140 $165 $129 $130 $152 $120 $141 $110 $130 $127 $100 $109 $90 $80 $70 $80 9 Mos. Ended 9 Mos. Ended F'16 F'17 F'18 F'19 F'20 F'21 4-30-21 4-30-22 Yr on Yr Yr on Yr 19.1% 15.8% 20.0% 8.3% (14
Slide 19: Cash Generation
Cash Generation 19 Cash from Op. Activities – Annual Trends (Millions of USD) Year-to-Date (millions of USD) $206 $155 $150 $200 $162 $144 $143 $100 $150 $139 $141 $65 $50 $100 $93 $0 $50 F'15 F'16 F'17 F'18 F'19 F'20 F'21 9 Mos. Ended 9 Mos. Ended 4-30-21 4-30-22 Cash Generation: Cash flow from ope
Slide 20: Strong Balance Sheet
Net Cash (millions of USD) 20 $350 $322 $300 $278 $256 $250 $200 $150 $109 $91 $100 $64 $50 $26 $- Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 Q1 F'22 Q2 F'22 Q3 F'22 Strong Balance Sheet: April 30, 2022 cash = $103M and debt = $77M. Brady is in a net cash position, even after investing $244M in acquisitions in
Slide 21: Identification Solutions (Sales & Segment profit %)
Identification Solutions (Sales & Segment profit %) 21 Annual Trends (Millions of USD) Year-to-Date (Millions of USD) 20.8% 20% 19% $800 19.4% 20% 19% 20% $900 17% 16% $758 $850 $842 $700 14% 15% 15% $863 $800 $846 $785 $800 $600 10% $796 10% $610 $750 $700 $500 5% 5% $650 $400 0% $600 0% 9 Mos. End
Slide 22: Workplace Safety (Sales & Segment profit %)
Workplace Safety (Sales & Segment profit %) 22 Annual Trends (Millions of USD) Year-to-Date (Millions of USD) $300 10% $350 9% 10% 10% 8% 7.5% 8% $325 $328 $325 8% 7% 8% 8% 6.3% $313 6% $303 $228 $298 $297 6% $200 $220 $300 4% 4% $275 2% 2% $250 0% $100 0% F'16 F'17 F'18 F'19 F'20 F'21 9 Mos. Ended
Slide 23: Summary
Summary 23 We are Financially Strong. We are Generating Strong Financial Results: • Revenue growth of 16.6% during the 9-month period ended April 30, 2022 (9.6% organic). • Record EPS in F’21, and F’22 is running well ahead of F’21 levels. We are Returning Funds to our Shareholders (repurchased 2.0
Slide 24: Investor Relations
24 Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors
Slide 25: Appendix: Q3 F'22 Financial Review
Appendix Q3 F’22 Financial Review
Slide 26: Q3 F'22 Highlights
26 Q3 F’22 Highlights CEO Appointment Appointment of Russell R. Shaller to President and CEO. 14.6% sales growth. Strong Sales Growth Organic sales grew 9.0%, with organic growth in both segments. Sequential GPM GPM of 48.4% increased sequentially from 47.0% last quarter. Improvement Margins remain
Slide 27: Sales Overview
Sales Overview 27 SALES (millions of USD) $350 $339 $321 $325 $318 $306 $300 $293 $295 $296 $290 $287 $282 $277 $277 $275 $266 $266 $252 $250 $225 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 Q1 F'22 Q2 F'22 Q3 F'22 Organic Growth 4.7% 2.3% 2.4% 1.7
Slide 28: Gross Profit Margin
Gross Profit Margin 28 GROSS PROFIT & GPM% (millions of USD) 50.3% 50.3% 50.4% 50.0% 49.5% 49.6% 49.3% 50% $175 48.7% 48.9% 48.7% 48.4% 48.2% 48.2% 47.1% 47.0% 48% $155 $164 $149 $148 $149 46% $150 $147 $146 $147 $140 $141 $139 $135 44% $130 $130 $125 42% $119 40% $100 38% Q1 F'19 Q2 F'19 Q3 F'19 Q4
Slide 29: SG&A Expense
SG&A Expense 29 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD) $120 32.8% 35% 32.3% 32.7% 31.2% 31.6% 31.3% 30.2% 30.9% 30.7% 30.2% 30.0% 30.6% 30.1% $110 29.1% 28.4% 30% $100 $97 $96 $95 $95 $93 $94 $93 25% $90 $91 $89 $90 $87 $83 $83 $82 20% $80 $76 15% $70 $60 10% Q1 F'19 Q2 F'19
Slide 30: R&D Expense
R&D Expense 30 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD) $16.0 4.4% 4.3% 4.3% 4.4% 4.5% 3.9% 3.9% $13.9 $14.0 $14.9 $14.0 3.9% 3.8% 3.8% 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% $13.2 3.5% $12.0 $11.3 $11.4 $11.3 $11.3 $11.1 $11.0 $10.5 $10.2 $9.8 $9.9 $10.0 $9.4 2.5% $8.0 $6.0 1.5% Q1 F'19
Slide 31: Income Before Income Taxes
Income Before Income Taxes 31 INCOME BEFORE INCOME TAXES (GAAP) (millions of USD) $51.3 $50 $47.1 $47.8 $44.7 $41.0 $41.6 $42.4 $42.2 $41.6 $42.0 $39.9 $39.4 $40 $36.7 $34.9 $30 $22.2 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 F'19 F'19 F'19 F'19 F'20 F'20 F'20 F'20 F'21 F'21 F'21 F'21 F'2
Slide 32: Net Income & Diluted EPS
Net Income & Diluted EPS 32 NET INCOME (GAAP) (millions of USD) DILUTED EPS (GAAP) $0.78 $40.1 $0.80 $40 $37.5 $37.3 $0.70 $0.71 $35.0 $0.67 $0.65 $33.6 $33.5 $33.8 $0.62 $0.64 $30.9 $0.59 $0.60 $30 $27.7 $28.0 $0.53 $0.53 $20 $0.40 $13.6 $0.26 $10 $0.20 $0 $0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
Slide 33: Cash Generation and Uses
Cash Generation and Uses 33 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $75 $62.8 $56.0 CASH FLOWS IN Q3 OF F’22: $55 $50.8 $42.8 $45.1 Overview: $38.8 $40.9 $36.1 Cash flow from operating activities was $40.9M in Q3 of $35 $27.5 F’22 compared to $56.0M in Q3 of F’21. $14.3 $15 Free cash f
Slide 34: Net Cash
Net Cash 34 NET CASH (millions of USD) $322 $300 $278 $256 $245 $240 $250 $229 $218 $200 $188 $190 $151 $150 $138 $109 $100 $91 $64 $50 $26 $0 Q1 F'19 Q2 F'19 Q3 F'19 Q4 F'19 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 Q1 F'22 Q2 F'22 Q3 F'22 STRONG BALANCE SHEET: April 30, 2022
Slide 35: Identification Solutions
Identification Solutions 35 Q3 F’22 vs. Q3 F’21 (millions of USD) Q3 F’22 SUMMARY: Q3 F’22 Q3 F’21 Change • Revenues increased 21.1%: • Organic growth = + 11.8%. Sales $ 264.1 $ 218.1 + 21.1% • Acquisition growth = + 11.7%. Segment Profit 54.0 47.5 + 13.5% • Fx reduction = (2.4%). • Strong organic s
Slide 36: Workplace Safety
Workplace Safety 36 Q3 F’22 vs. Q3 F’21 (millions of USD) Q3 F’22 SUMMARY: Q3 F’22 Q3 F’21 Change • Revenues declined 3.9%: • Organic growth = + 0.9%. Sales $ 74.4 $ 77.4 - 3.9% • Fx reduction = (4.8%). Segment Profit 7.1 5.7 + 25.7% • Charges of $1.8M were recognized in Q3 of F’22 to further stream
Slide 37: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations 38 GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconcilia
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations 39 GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconcilia