Brady Corporation · NYSE:BRC
Brady — Investor Day (September 2013)
90 slides from Brady's investor day presentation, Sep 19, 2013
Slide 1: F'14 Investor & Analyst Day
F’14 Investor Day September 19, 2013 F’14 INVESTOR & ANALYST DAY September 19, 2013 WE IDENTIFY AND PROTECT PREMISES, PRODUCTS, AND PEOPLE. 1
Slide 2: Today's Agenda
Today’s Agenda • 8:00 – 8:30 am Breakfast / Gathering • 8:30 – 9:00 am Strategic Overview • Frank Jaehnert, CEO • 9:00 – 10:00 am Workplace Safety Strategic Review • Scott Hoffman, President – WPS 10 00 10 05 B k• : – : rea • 10:05 – 11:00 am ID Solutions Strategic Review • Matt Williamson, Presiden
Slide 3: Today's Presenters
Today’s Presenters Frank Jaehnert, President & Chief Executive Officer • 18-year tenure with Brady Corporation • Named president and chief executive officer in 2003. Tom Felmer, Senior VP & Chief Financial Officer • 24-year tenure with Brady Corporation • Named senior VP and chief financial officer
Slide 4: Forward-Looking Statements
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, pr
Slide 5: Brady's Transformation
BRADY’S TRANSFORMATION Frank Jaehnert Chief Executive Officer 5
Slide 6: Our Mission & Vision are Unchanged
Our Mission & Vision are Unchanged Our Mission is to Identify and Protect O r Vision is to be the ind str leader Sustainable u u y in all our businesses in order to achieve long-term shareholder value. 6
Slide 7: Our Historical Results
Our Historical Results Annual Sales 1984 1991 1998 2005 20121984 1992 1999 2006 2013 Net Earnings from Continuing Operations – Non-GAAP* 1984 1991 1998 2005 20121984 1992 1999 2006 2013 7 * Net Earnings from Continuing Operations, Excluding Certain Items is a non-GAAP measure. See appendix.
Slide 8: Today's Realities
Today’s Realities OUR CHALLENGES • Sluggish global macro-economy OUR STRENGTHS • 100-year track record of strong • Price transparency, new competitors and other factors lead to negative trends in our financial performance • Leadership position in fragmented, niche industries Workplace Safety busines
Slide 9: F'13 Actions and F'14 Priorities
F’13 Actions and F’14 Priorities F’13 – REALINGED FOR GROWTH: • Reorganized around global business platforms. • Sold 3 businesses last year and announced plans to sell Die Cut. • Purchased PDC in Q2 of F’13. • Executed business simplification. F’14 – PRIORITIES: R t WPS b i t i th• e urn us ness o o
Slide 10: Global Platform Summary
Global Platform Summary F’13 (Excluding PDC)*: F’13 (Pro-forma Continuing Operations - with Full Year of PDC)*: 50% 17% 66% 33% IDS 34% IDS WPSWPS Die-Cut 10 IDS moves from 50% to 66% of Brady’s total sales. * Based on actual F’13 revenues.
Slide 11: Diversified Geographic Presence
Diversified Geographic Presence F’13 (Excluding PDC and including Die- Cut)*: F’13 (Pro-forma Continuing Operations - with Full Year of PDC and Die-Cut Discontinued)*: 44% 26% 60% 11% 30% 29% Americas Europe Asia/Pacific Americas EMEA Asia-Pacific (approx ½ is Australia). 11 Portfolio Adjustments In
Slide 12: Brady's Values
Brady’s Values B d lra y va ues remain at the heart of everything we do . 12
Slide 13: Elements of Brady's Transformation
Elements of Brady’s Transformation MAIN ELEMENTS OF BRADY’S TRANSFORMATION: • Structure • Investments for Growth • Execution 13
Slide 14: Brady's Transformation - Structure
Brady’s Transformation - Structure Activities Outcome PORTFOLIO MANAGEMENT Bought PDC and selling Die-Cut Expanding in faster-growth geographies Expanding in focused industries Reduced portfolio volatility Increased exposure to industries with longer-term growth prospects BUSINESS REORGANIZATION Ali
Slide 15: Brady's Transformation - Investments
Brady’s Transformation - Investments PLATFORM GROWTH INVESTMENTS Workplace Safety: • Develop Best-in-class Digital Capabilities ID Solutions: • Innovative New Products • Create Industry and Compliance Expertise for Workplace Safety critical • Industry Expertise • Strategic Account Focus • Sales Team
Slide 16: Brady's Transformation - Execution
Brady’s Transformation - Execution BBPS - IMPROVING THE EFFECTIVENESS OF OUR EXECUTION • Accountability and alignment to our KPIs • Standard center-led global processes • Problem solving best practices • Timely and effective countermeasures • Agile - Drive, test, learn & adjust 16 Brady Business Per
Slide 17: Our Key Priorities
Our Key Priorities Drive Organic Growth: • Return WPS business to organic growth. • Drive organic sales growth initiatives in IDS growt ID . Complete Portfolio Adjustments: • Complete the sale of Die-Cut. Execute Consolidation Activities: • Execute facility consolidation plans. • Continue to drive o
Slide 18: Workplace Safety
WORKPLACE SAFETY Scott Hoffman President – Workplace Safety 18
Slide 19: WPS Global Platform Summary
WPS Global Platform Summary Products: • Vast offering of workplace safety products (signs, tags, labels, safety equipment and related Channels: Multi-channel model (internet, catalogs, telesales, e-business) Business Drivers: CHANNELS & DRIVERSPRODUCTS & CUSTOMERS products) • Approx. 50% of products
Slide 20: WPS Geographic Presence
WPS Geographic Presence F’13 Revenues* 34% 48% 18% Americas (U.S. = 30%) Europe (Western Europe = 47%) Australia 20 Approx. 70% of WPS revenues are outside of the U.S. * Based on actual F’13 revenues.
Slide 21: WPS Channels
WPS Channels 61% 13% Traditional Other Channels Anticipate flat to a slight decline in organic sales in F’14 26% Digital . • Traditional catalogs, in-bound telesales, out-bound telesales Traditional Channels Digital Channels • Transactions conducted over the Internet • Direct sales forces in selecte
Slide 22: WPS - Industries Served
WPS – Industries Served Mining, oil, gas, 2% Finance, insurance, l t t 3% Agriculture, 1% R t il Industry Breakdown Wholesale trade, 12%Health services, 7% rea es a e, e a , 6% Manufacturing, 35% Transportation, comm utilities 13% Education, 7% ., , Construction, 10% Public admin, gov't, 3% 22 Diver
Slide 23: WPS Financials
WPS Financials $109 $106 $111 $109 $110 $104 $105 $100 27.7% 26 9% 26 8% 30% $200 $250 e s ) All major geographies experienced declines in F’13. 26.3% . 25.4% 22.6% 22.3% 20.5% 20% $100 $150 R e v e n u e s t P r o f i t ( % o f S a l . Australia impacted by weak economy and slow-down in the min
Slide 24: WPS Trends/Characteristics
WPS Trends/Characteristics • Industry Characteristics: • $143B global workplace safety industry • Heavily fragmented • ~2 to 3% growth • Profitable R d h i h i d d h d b i• ecent tren s are c ang ng t e n ustry – an ow we o us ness Customer desire for supplier expertise Growing use of multichannel o
Slide 25: WPS Trends/Characteristics
WPS Trends/Characteristics • Hard-to-interpret, ever-changing compliance regulations • Globalization of standards and regulations • Complex technical product specificationsComple echnica roduc pecification 25
Slide 26: Workplace Safety Strategies
Workplace Safety Strategies A customer-driven VALUE-ADDED PROVIDER focusing on TARGETED SEGMENTS (NICHES) WITHIN THE LARGE WORKPLACE SAFETY INDUSTRY of WORKPLACE SAFETY SOLUTIONS Build best-in- class online / Create industry & compliance Expand consumables Build differential Optimize brands 26 digit
Slide 27: WPS Business Transformation
WPS Business Transformation • From… • To… HOW WE TRANSFORM OUR BUSINESS TO WIN • Online channel as complement to legacy catalog Blanket targeting dri en b traditional • Online-driven multichannel organization • Strategically targeting workplace• v y catalog metrics, including response rates, avg spe
Slide 28: F'14 Investments into WPS
F’14 Investments into WPS INCREMENTAL INVESTMENT OF NEARLY $14M Investment dollars are focused on accelerating our transformation to: • An online-driven multichannel i ti 67% organ za on • Strategically targeting workplace safety critical industries where we can compete and win based on our deep und
Slide 29: WPS - Deeper Dive into Digital Activities
WPS – Deeper Dive into Digital Activities • New leadership and talent • Global center of excellence (scale speed and focus) WHAT SPECIFICALLY WILL BE DIFFERENT? , , focus • Ramping online advertising spend • Doubled platform investment yielding: • Improved site performance and scale • Enhanced produ
Slide 30: WPS Performance Indicators
WPS Performance Indicators Transition From… To. . . Key Metrics to Watch HOW WILL WE KNOW IF WE ARE WINNING? • Business predominantly conducted via traditional channels (i.e. catalogs). • Increased sales conducted over the internet increases from 13% of total sales in F’13 to 19% in F’16. • Business
Slide 31: WPS - Key Points to Remember
WPS – Key Points to Remember • We have struggled to grow recently. • Profitable business with hundreds of thousands of existing customers. • We have a solid plan to return WPS to organic sales growth. • We recently implemented a scalable global structure designed to leverage capabilities maximize ex
Slide 32: Q&A
Q&A S BRADY
Slide 33: Break
Break S BRADY
Slide 34: Identification Solutions
IDENTIFICATION SOLUTIONS Matt Williamson President – Identification Solutions 34
Slide 35: IDS - Major Product Offerings
IDS – Major Product Offerings • The IDS global platform is engaged in the following major product categories: • Safety & Facility ID • Wire ID • Product ID • People ID H lth ID• ealt care Wire ID SFID 35% 17% 18% Product ID 9%21% Healthcare ID People ID 35
Slide 36: IDS - Global Platform Summary
IDS – Global Platform Summary Brands: • Industry-leading brands including Brady and Precision Dynamics Corporation (PDC) Business Drivers: • Employee & patient safety. • Productivity Use of print on demand systems BUSINESS & VALUE DRIVERSPRODUCTS & CUSTOMERS . Channels to Market: • Distribution - Se
Slide 37: IDS - Geographic Presence
IDS – Geographic Presence F’13 Pro-Forma Revenues* 71% 21% 8% Americas EMEA Asia-Pacific 37 * Based on actual F’13 revenues adjusted for a full-year of PDC.
Slide 38: IDS Channels
IDS Channels 69% Distribution Indirect through Group Purchasing O i i (“GPO”) 12% 19% rgan zat ons Direct and all Other Channels • Strong distributor relationships in the U.S. and Western Distribution Channels GPO Channels • Much of PDC business is sold direct to customers based on • Direct sales fo
Slide 39: IDS - Industries Served
IDS – Industries Served Other, 9% Industry Breakdown Industrial Equipment/ Manufacturing, 21% Healthcare, 14% COG, 8% ADM, 8% Electrical, 16% Automotive, 3% Electronics Food & Beverage, 8% Manufacturing, 10% Datacomm, 3% 39 Diverse Industries Served
Slide 40: ID Solutions Financials
ID Solutions Financials a l e s ) • U.S. business has shown organic growth for last 8 quarters. • Expanding in Central $164 $149 $160 $160 $161 $167 $196 $210 25 5% 27.3% 20.3% 23.5% 22.7% 30% $200 $250 R e v e n u e s n t P r o f i t ( % o f S a Europe, Middle East, Asia and Africa. • Economic head
Slide 41: Identification Solutions Strategies
Identification Solutions Strategies POSITION Deliver expertise & world class PROMISE Every interaction with Brady - products that help customers identify & protect their employees, the products they make & the facilities in which they work. or with a Brady product will be an experience unrivaled by
Slide 42: IDS - Overall Growth Strategies
IDS - Overall Growth Strategies TOP PRIORITY STRATEGIES TO ACCELERATE SALES GROWTH AND GAIN SHARE • Innovation and new product development - Be first to market with the most relevant and innovative product offering. • Industry Expertise - Be the recognized industry expert for ID products to our cust
Slide 43: IDS Description - SFID
IDS Description - SFID What • Printing Systems • Preprinted signs, labels, tags • Lockout devices we sell • Spill control • Software and Services & How we sell • Inside outside sales people, strategic account managers • Partner with distributors • Direct thru bradyid.com • Direct (custom products/se
Slide 44: SFID Growth Strategy
SFID Growth Strategy WHAT HOW Be the leading expert for specific workplace safety issues in focus Gaining Expertise: • Expand Industry Marketing, Global Product industries and geographies Marketing, Strategic Acct Managers • Customer Councils • Build a Global Knowledge Center Demonstrating Expertise
Slide 45: IDS - Wire ID Platform Description
IDS – Wire ID Platform Description What • Wire ID: labels, sleeves and tags • Portable Thermal printers & tied consumables • Benchtop Thermal printers inkjet printers & tied we sell , consumables • Labeling software How we sell • Inside & outside sales people, strategic acct. managers. • Partner wit
Slide 46: Wire ID - Growth Strategy
Wire ID - Growth Strategy WHAT HOW Take share through aggressive customer conversion Focused & superior sales organization across Brady: • Highly technical and specifications driven • Trusted biz advisor selling skills as core competency Expand channel: • Expand distribution network & presence with
Slide 47: IDS - Product ID Platform Description
IDS – Product ID Platform Description • Traceability ID - Print on demand (“POD”): High performance film labels and printing systems, incorporating barcodes, serialization or RFID S it ID S l d l b l f ti t f iti What we sell • ecur y - ea s an a e s or an -coun er e ng and supply chain control (inc
Slide 48: Product ID Growth Strategy
Product ID Growth Strategy WHAT HOW Take share in the traceability segment and grow brand protection to emerge as the global leader • Align commercial organization: • Dedicated experts in sales, marketing and customer service • Expand offering to include new technology such as RFID • Establish leadi
Slide 49: IDS - Strategic Initiatives Summary
IDS – Strategic Initiatives Summary DRIVING STRATEGIC INITIATIVES • Innovation and New Product Development ACTIONS • Improve front-end marketing, plus R&D processes to commercialize more • Digital innovative products faster. Increase new product pipeline & sales. • Increase the ability to find & buy
Slide 50: People ID and PDC
ey fesBRADY People ID and PDC S BRADY
Slide 51: IDS - Description of People ID
IDS – Description of People ID What We S ll • Identification Attachments - Lanyards, Holders and Reels • Visitor Care: Self Expiring Badges, Labels and Software • ID Cards & Card Printers - ID Cards, e-Cards, Printers e • Access Control - Hardware and Software • Badging Software & Supplies - Cards,
Slide 52: PDC - Product Overview
PDC – Product Overview Human- readable Healthcare Wristbands & Labels (70%) Healthcare – Other (15%) Wristbands Machine- readable Wristbands Leisure & Entertainment (15%) Blood Bands Hospital Labels Companion Labels 52 Acquisition of PDC accelerated our entry into the Healthcare industry.
Slide 53: PDC Acquisition Summary
PDC Acquisition Summary • Largest acquisition in Brady’s history - $301M purchase price. Revenues = $173M, Adjusted EBITDA = $33M (19.1% of sales) A i d D b 28 2012• cqu re - ecem er , • Sizeable platform acquisition of a leader in an attractive healthcare segment with positive macro trends • Abilit
Slide 54: Healthcare ID Drivers
Healthcare ID Drivers • Healthcare products represent approximately 85% of PDC’s net sales • PDC’s sales are approximately 88% domestic and 12% i t ti l Revenues by Category n erna ona • PDC core product offering expected to grow at 1- 2% above hospital admissions • Business supported by several mac
Slide 55: Healthcare ID Growth Strategies
Healthcare ID Growth Strategies • PDC/Brady Acquisition – Acquisition by Brady provides growth opportunities for PDC. • Moderate opportunities in the Americas • Expansion opportunities in Europe and Asia • New Products – Reinvigorating new product development • Digital – Opportunities to reach custo
Slide 56: Q&A
Q&A S BRADY
Slide 57: Break
Break S BRADY
Slide 58: Financial Update
FINANCIAL UPDATE Tom Felmer Senior Vice President 58 Chief Financial Officer
Slide 59: Financial Overview
Financial Overview • In business nearly 100 years • Sustainable history of strong financial results. • Consistent free cash flow in excess of net income. Long-Term Stability Strong Balance Sheet & Capital Allocation • Debt/EBITDA of 1.7x at July 31, 2013. • Reorganized & investing to accelerate orga
Slide 60: F'14 Enterprise Strategies
F’14 Enterprise Strategies Business Challenges – Macro and WPS Current Macro Environment is not conducive to significant organic growth. Investment is needed to change the trajectory of WPS. F’14 is a year of transition and transformation. STRUCTURAL & INVESTMENT ACTIONS Die Cut: Actions - • Sold 1
Slide 61: F'13 Recap
F’13 Recap • Sales up 7.8% to $1,152M vs. $1,069M in Q4 of F’12. • Organic sales down 2.6%, acquisitions increased sales by 11.3%, and foreign currency decreased sales by 0.9%. • Gross Profit Margin of 52.6% in fiscal 2013 compared with 55.2% in fiscal 2012. • SG&A expense of $427.7M (37.1% of sales
Slide 62: Sales Overview
Sales Overview $273 $255 $271 $269 $271 $271 $301 $309 $300 $350 $200 $250 $150 Q1 F'12 Q2 F'12 Q3 F'12 Q4 F'12 Q1 F'13 Q2 F'13 Q3 F'13 Q4 F'13 Organic Sales 5.1% (0.9%) 0.6% 1.5% (1.1%) (2.2%) (5.0%) (2.3%) ID S l ti T di t l i l di it t Q4 F’13 SALES: SALES COMMENTARY: • Q4 F’13 Sales up 14.9%: •
Slide 63: Gross Profit Margin & SG&A
Gross Profit Margin & SG&A 40.5% 45.0%$200 GROSS PROFIT & GPM% (Millions of USD) SG&A & SG&A as % of SALES (Millions of USD) 55.0% 55.4% 55.5% 54.8% 55.2% 50 9% 60.0%$200 $99 $95 $98 $100 $99 $110 $112 $107 36.3% 37.3% 36.2% 37.3% 36.6% 37.3% 34.6% 30.0% 35.0% 40.0% $100 $150 $150 $141 $150 $147 $15
Slide 64: Net Earnings & EPS
Net Earnings & EPS $ $ $29 $29 $26 15%$60 $0.53 $0.50 $0.55 $0.56 $0.50 $0.38 $0.54 $0.53 NET EARNINGS FROM CONTINUING OPERATION,S EXCLUDING CERTAIN ITEMS* (Millions of USD) NET EARNINGS FROM CONTINUING OPERATIONS PER CLASS A DILUTED NONVOTING SHARE, EXCLUDING CERTAIN ITEMS* 28 26 $19 $27 $28 10% 10
Slide 65: IDS Financial Performance
IDS Financial Performance $164 $149 $160 $160 $161 $167 $196 $210 SALES & SEGMENT PROFIT % (Millions of USD) 25.5% 24.7% 25.4% 25.0% 27.3% 20.3% 23.5% 22.7% 20% 30% $150 $200 $250 10% $50 $100 0%$0 Q1 F'12 Q2 F'12 Q3 F'12 Q4 F'12 Q1 F'13 Q2 F'13 Q3 F'13 Q4 F'13 Organic Sales % 5.5% (0.8%) 2.1% 3.8%
Slide 66: WPS Financial Performance
WPS Financial Performance SALES & SEGMENT PROFIT % (Millions of USD) $112 $106 $111 $109 $110 $104 $105 $100 30% 27.0% 26.9% 26.3% 26.8% 25.4% 22.6% 22.3% 20.5% 20% $150 10% $100 0%$50 Q1 F'12 Q2 F'12 Q3 F'12 Q4 F'12 Q1 F'13 Q2 F'13 Q3 F'13 Q4 F'13 Organic Sales % 4.4% (1.1%) (1.6%) (1.8%) (3.3%) (7
Slide 67: History of Strong Cash Generation
History of Strong Cash Generation $250 Cash Flow from Operating Activities % of Net Income (excl. F'12 & F'13 impairment charges) CASH FLOW FROM OPERATING ACTIVITIES (Millions of USD) $127 $165 $167 $145 $144 150% 200% $200 50% 100% $100 $150 0%$50 2009 2010 2011 2012 2013 • Free Cash Flow* of $107M
Slide 68: Cash Generation
Cash Generation Year-Ended July 31, 2013 Year-Ended July 31, 2012 Cash Balance - Beginning of Year 305.9$ 390.0$ C f O 1 3 1ash Flow rom perating Activities 4 .5 44.7 Capital Expenditures (35.7) (24.1) Proceeds from Sales of Businesses 10.2 0.9 A i iti f B i (301 2) (37 6) cqu s on o us nesses . . R
Slide 69: Strong Balance Sheet
Strong Balance Sheet 2.3 2 2 2.5x GROSS DEBT / TTM EBITDA*GROSS DEBT (Millions of USD) $500 . 2.0 1.8 1.8 1.8 1.6 1.6 1.6 2.0 1.7 1.7 2.0x $391 $384 $342 $316 $321 $438 $338 $313 $3 0 $400 $450 1.0x 1.5x 1 1 1 1 1 2 1 2 1 3 1 3 $250 $300 5 1 2 1 2 1 2 1 2 1 3 1 3 1 3 1 3 Q 1 F ' 1 Q 3 F ' 1 Q 1 F '
Slide 70: Balanced Capital Allocation
Balanced Capital Allocation Organic Growth Acquisition Growth Dividends Share Buybacks • New Product Development • Faster Growing Industries & Geographies Innovation & Growth • Expansion to near-in adjacent spaces • Tuck-in acquisitions with Disciplined Acquirer • F’14 marks the 28th consecutive yea
Slide 71: Dividends are Central to our Capital Allocation
Dividends are Central to our Capital Allocation DIVIDENDS PER SHARE $0.80 $0.60 $0.70 On September 11th, we announced an increase in our annual dividend to $0.78/share. • Dividend payout guideline of approximately 1/3 f t i $0 30 $0.40 $0.50 o ne ncome. • Dividend yield of approximately 2 5% 2 6% $0
Slide 72: F'14 Continuing Operations Guidance
F’14 Continuing Operations Guidance F’14 Diluted EPS from Continuing Operations $1.80 to $2.00 (excluding restructuring charges and certain other items) Material Items Impacting F’14 EPS from Continuing Operations Guidance: Incremental Benefit from PDC Acquisition $ 0.08 Business Simplification Savi
Slide 73: F'14 Continuing Operations Guidance Build-Up
F’14 Continuing Operations Guidance Build-Up (millions of USD, except EPS amounts) Diluted Earnings per Share, Excluding Certain Items* Guidance Range Low‐End High‐End F'13 (EPS, excluding certain items)* 1.93$ 1.93$ PDC ‐ Annualized Results 0.08 0.08 Simplification Savings, net of selected strategi
Slide 74: Shareholder Return Strategies (by F'16)
Shareholder Return Strategies (by F’16) • Grow IDS, including a portfolio shift to faster-growing geographies and more stable • Today, we are focused on returning to organic growth. • Reduced acquisition activity in 10%+ SALES GROWTH Acquisition Growth - 5%+Organic Growth - 5%+ industries • Execute
Slide 75: Q&A
Q&A S BRADY
Slide 76: Company Video
Company Video 76
Slide 77: Die Cut
DIE CUT Frank Jaehnert President & Chief Executive Officer 77
Slide 78: Die-Cut Strategies
Die-Cut Strategies POSITION Leverage our experience in sales, engineering, operations, and our VISION To serve customers with household names and leading PROMISEstrategic sourcing relationships. product portfolios. To provide high performance, tight tolerance, engineered solutions. Customer Industry
Slide 79: Die-Cut Priorities
Die-Cut Priorities • Focus on our Customers: OUR DIE-CUT PRIORITIES ARE SIMPLE • Exceed expectations on quality, product performance, and delivery. R i f th B d t li Wh P f M tt• e n orce e ra y ag ne en er ormance a ers Most. • Continue to drive improvements in operational efficiencyContinu operati
Slide 80: Recap of Brady's Key Priorities for F'14
Recap of Brady’s Key Priorities for F’14 Drive Organic Growth: • Return WPS business to organic growth. • Drive organic sales growth initiatives in IDS growt ID . Complete Portfolio Adjustments: • Complete the sale of Die-Cut. Execute Facility Consolidation Activities: • Execute facility consolidati
Slide 81: Closing Remarks
CLOSING REMARKS Frank Jaehnert President & Chief Executive Officer 81
Slide 82: Our Commitment to You, Our Shareholders
Our Commitment to You, Our Shareholders. . . We will. . . I t i WPS t t t i l• nves n o re urn o organ c sa es growth. • Focus on driving organic sales growth in our IDS business by continuing the portfolio shift into faster-growing industries and geographies. • Work to complete the sale of Die Cut.
Slide 83: Thank You
Thank You S BRADY
Slide 84: Q&A
Q&A S BRADY
Slide 85: Lunch, Tours, & Product Displays
LUNCH, TOURS, & PRODUCT DISPLAYS 85
Slide 86: Appendix: Non-GAAP Reconciliations
APPENDIX NON-GAAP RECONCILIATIONS 86
Slide 87: EBITDA - Total Company
EBITDA – Total Company B d i ti EBITDA b it i d b f i t d l d d i t d i t th EBITDA t tra y s presen ng ecause s use y many o our nves ors an en ers, an s presen e as a conven ence o em. represen s ne earnings before interest expense, income taxes, depreciation, amortization and impairment charges.
Slide 88: Non-GAAP Earnings from Continuing Operations
Non-GAAP Earnings from Continuing Operations Brady is presenting the Non-GAAP measure "Net (Loss) Earnings from Continuing Operations Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this Non-GAAP measure are derived from amounts included in the Condensed
Slide 89: Non-GAAP EPS from Continuing Operations
Non-GAAP EPS from Continuing Operations Brady is presenting the Non-GAAP measure "Net Earnings from Continuing Operations Per Diluted Class A Nonvoting Common Share Excluding Certain Items." This is not a calculation based upon GAAP. The amounts included in this Non-GAAP measure are derived from amo
Slide 90: Quarterly Financial Statements
Quarterly Financial Statements Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 273.4$ 255.1$ 271.2$ 269.1$ 270.9$ 271.2$ 301.0$ 309.1$ F'12 F'13 Gross margin 150.5 141.2 150.4 147.5 149.5 141.0 158.5 157.0 % of Sa les 55.0% 55.4% 55.5% 54.8% 55.2% 52.0% 52.7% 50.8% Research and development (8.5) (8.8) (8.2) (9.0) (7.