Slide 1: Brady Corporation Investor Presentation
Brady Corporation Investor Presentation September – November 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 In this news release, 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: Summary: Global Leader with Innovative Solutions
Summary 4 Global Leader with Leader in niche safety, identification, and compliance markets. Innovative Solutions Diversified customer base, products, and geographic footprint. Focused on innovation, automation, digital, and geographic Long-Term Sustainable expansion. Results Expanding in faster-gro
Slide 5: Geographic Presence
Geographic Presence 5 Americas & Asia (F’24): Identification Solutions = 94% Workplace Safety = 6% F’24 Sales by Region (70 facilities in 32 countries) Europe & Australia (F’24): 6% 7% Identification Solutions = 52% Workplace Safety = 48% 53% 30% 4% U.S.A. Rest of Americas Asia Europe, Middle East &
Slide 6: Brady's Regional Divisions
Brady’s Regional Divisions 6 Americas & Asia: Safety & Facility ID Wire Identification Overview: • 66% of total revenue. • 60% sold through distribution / 40% sold direct through field sales, internet, telesales and catalog. Primary Brands: • Brady, PDC, Code, Product ID Healthcare ID Magicard, Seto
Slide 7: Social Value is Embedded in our Strategy
Social Value is Embedded in our Strategy 7 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 8: Summary
Summary 8 Focused on organic sales growth: • Innovation, automation, digital and geographic expansion. • Organic sales growth of 2.6% for the year ended July 31, 2024. Driving strong profit improvements and returning funds to our shareholders: • Record EPS in F’24 with 16.0% growth over F’24. • Exec
Slide 9: Financial Overview
—— Financial Overview
Slide 10: Revenues: Annual Trends
Revenues 10 Annual Trends (Millions of USD) $1,332 $1,341 $1,302 $1,300 $1,200 $1,174 $1,161 $1,145 $1,121 $1,113 $1,100 $1,081 $1,000 $900 F'16 F'17 F'18 F'19 F'20 F'21 F'22 F'23 F'24 Organic Growth (0.7%) 0.5% 2.6% 2.8% (5.4%) 1.6% 9.4% 5.5% 2.6% For. Currency (3.7%) (1.2%) 3.0% (2.6%) (1.4%) 3.2%
Slide 11: Gross Profit Margins: Annual Trends
Gross Profit Margins 11 Annual Trends (Millions of USD) 49.9% 50.1% 50.1% 49.9% 49.4% 51.3% 48.9% 49.0% 48.5% 50% $700 $688 $657 $632 40% $600 $588 $579 30% $559 $558 $561 $529 20% $500 10% $400 0% F'16 F'17 F'18 F'19 F'20 F'21 F'22 F'23 F'24 Gross Profit Margin: Focus on sustainable operational imp
Slide 12: Research & Development: Annual Trends
Research & Development 12 Annual Trends (Millions of USD) 5.1% 5.0% $70 4.6% $68 4.5% $61 $60 3.9% 3.9% 3.9% $59 3.8% 4.0% 3.6% 3.2% $50 $45 $45 $45 3.0% $40 $41 $40 $36 2.0% $30 $20 1.0% F'16 F'17 F'18 F'19 F'20 F'21 F'22 F'23 F'24 R&D Expense: Increased investment in R&D to drive future organic sa
Slide 13: SG&A Expenses: Annual Trends
SG&A Expenses 13 Annual Trends (Millions of USD) $450 36.1% 34.8% 35% 33.3% 32.0% 31.1% $405 30.6% 29.2% 30% $400 $390 28.1% $388 27.8% $380 $377 $371 $371 25% $350 $350 $336 20% $300 15% F'16 F'17 F'18 F'19 F'20 F'21 F'22 F'23 F'24 SG&A Expense: Investing in sales and marketing activities to drive
Slide 14: Income Before Income Taxes: Annual Trends
Income Before Income Taxes 14 Annual Trends (Millions of USD) $248 $250 $226 $225 $200 $192 $171 $175 $165 $152 $150 $141 $127 $125 $109 $100 $75 F'16 F'17 F'18 F'19 F'20 F'21 F'22 F'23 F'24 Yr on Yr Growth 19.1% 15.8% 20.0% 8.3% (14.4%) 21.3% 12.3% 17.6% 9.8% (Decline) Income Before Income Taxes: H
Slide 15: Diluted EPS: Annual Trends
Diluted EPS 15 Annual Trends (Millions of USD) $4.07 $4.00 $3.46 $3.50 $3.00 $2.90 $2.46 $2.47 $2.50 $2.04 $2.11 $2.00 $1.84 $1.58 $1.50 $1.00 F'16 F'17 F'18 * F'19 F'20 F'21 F'22 F'23 * F'24 24.4% 16.5% 10.9% 20.6% (14.2%) 17.1% 17.4% 19.3% 17.6% Yr on Yr Growth (Decline) Diluted EPS: History of st
Slide 16: Cash Generation: Annual Trends
Cash Generation 16 Cash from Op. Activities – Annual Trends (Millions of USD) $255 $250 $206 $209 $200 $162 $139 $144 $143 $141 $150 $118 $100 $50 F'16 F'17 F'18 F'19 F'20 F'21 F'22 F'23 F'24 Cash Generation: History of strong cash generation. Improved earnings and reduced inventory purchases led to
Slide 17: Net Cash
Net Cash (millions of USD) 17 $400 $322 $300 $200 $159 $123 $109 $102 $91 $96 $97 $100 $84 $64 $26 $31 $19 $15 $- Q3 F'21 Q4 F'21 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Strong Balance Sheet: July 31, 2024 cash = $250.1M and debt = $90.9M. Bala
Slide 18: Americas & Asia: F'24 vs. F'23
Americas & Asia 18 F’24 vs. F’23 (millions of USD) SALES & SEGMENT PROFIT % (millions of USD) F’24 F’23 Change $1,100 22% $1,000 22% Sales $ 886.5 $ 888.9 (0.3%) $889 $887 $900 $861 20% Segment Profit 196.8 180.5 + 9.1% $800 20% Segment Profit % $700 18% 22.2% 20.3% + 190 bps 18% $600 $500 16% $400
Slide 19: Europe & Australia: F'24 vs. F'23
Europe & Australia 19 F’24 vs. F’23 (millions of USD) SALES & SEGMENT PROFIT % (millions of USD) F’24 F’23 Change $500 16% 16% 14% 15% $455 Sales $443 $ 454.9 $ 443.0 2.7% $450 $441 14% Segment Profit 70.6 65.7 + 7.4% 12% $400 10% Segment Profit % 15.5% 14.8% + 70 bps $350 8% $300 6% SALES & SEGMENT
Slide 20: Summary
Summary 20 We are financially strong. Accelerated organic sales growth. Improved profitability. Returning funds to our shareholders. Enhanced new product pipeline, positive sales momentum, organic growth investments, a strong balance sheet, and a focus on execution puts Brady in an excellent positio
Slide 21: Appendix: Q4 F'24 Financial Review
Appendix Q4 F’24 Financial Review
Slide 22: Q4 F'24 and Full-Year F'24 Highlights
Q4 F’24 Highlights 22 GPM of 51.6% compared to 50.8% in Q4 of F’23. Improved GPM Healthy gross profit margins indicative of Brady’s high value-add. Record GAAP & GAAP EPS of $1.15 was up 15.0% over Q4 of last year. Non-GAAP EPS Diluted EPS Excluding Certain Items* increased 14.4% to $1.19 in Q4 of F
Slide 23: Sales Overview
Sales Overview 23 SALES (millions of USD) $350 $346 $343 $343 $339 $337 $332 $324 $326 $321 $323 $323 $325 $318 $306 $300 $296 $277 $275 $266 $250 $225 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Organic Growth (4.9%
Slide 24: Gross Profit Margin
Gross Profit Margin 24 GROSS PROFIT & GPM% (millions of USD) $200 51.7% 51.6% 51.6% 52% 50.8% 50.4% 50.4% 50.3% 50.2% 50% 48.9% 48.7% 48.4% $176 $177 $177 48.2% 48.2% 48.1% 48.0% $172 $175 $170 47.0% 48% $164 $163 $162 $155 $155 $156 46% $149 $148 $149 $150 44% $135 $130 42% $125 40% $100 38% Q1 F'2
Slide 25: SG&A Expense
SG&A Expense 25 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD) $120 35% 30.9% 30.7% 30.0% 30.6% 30.1% $110 29.1% 29.2% 29.0% 28.4% 27.9% 28.3% 28.2% 28.3% 27.9% 30% 27.0% 27.2% $100 $97 $96 $97 $96 $96 $94 $95 $93 25% $93 $92 $91 $91 $90 $91 $90 $83 $82 20% $80 15% $70 $60 10% Q1 F'
Slide 26: R&D Expense
R&D Expense 26 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD) $20.0 5.2% 5.5% 5.1% 5.1% 4.9% 4.7% 4.7% 4.7% 4.7% $17.7 $18.0 $17.5 4.4% 4.4% 4.3% $16.8 4.3% 4.3% $16.3 4.5% $16.0 $15.8 $15.7 $15.7 3.8% $15.4 3.7% 3.7% $14.9 $13.9 $14.0 $13.9 $14.0 $13.2 3.5% $12.0 $11.3 $10.2 2.5% $9.
Slide 27: Income Before Income Taxes
Income Before Income Taxes 27 INCOME BEFORE INCOME TAXES (GAAP) (millions of USD) $70 $64.4 $68.2 $63.0 $63.8 $59.4 $60 $55.8 $54.0 $51.3 $50.3 $47.8 $48.5 $50 $44.7 $42.2 $41.6 $42.0 $39.4 $40 $30 $20 $10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F'21 F'21 F'21 F'21 F'22 F'22 F'22 F'22 F'23 F
Slide 28: Net Income & Diluted EPS
Net Income & Diluted EPS 28 NET INCOME (GAAP) (millions of USD) DILUTED EPS (GAAP) $60 $1.20 $1.15 $55.5 $1.05 $1.00 $50.9 $1.00 $0.96 $0.97 $49.4 $0.90 $50 $48.1 $47.2 $0.81 $0.79 $43.6 $0.78 $0.80 $0.71 $0.76 $40.1 $41.1 $39.4 $0.67 $0.65 $40 $37.3 $38.0 $0.64 $35.0 $0.59 $33.5 $33.8 $0.60 $0.53 $
Slide 29: Cash Generation
Cash Generation 29 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $95 $84.0 $79.3 $72.5 $72.7 $70 $62.8 $62.3 CASH FLOWS IN Q4 OF F’24: $56.0 $53.2 $50.8 Overview: $45 $40.9 $36.1 $36.1 $27.5 $28.0 $29.4 Cash flow from operating activities was $84.0M in Q4 of F’24 vs. $79.3M in Q4 of F’23. F’
Slide 30: Net Cash
Net Cash 30 NET CASH (millions of USD) $350 $322 $300 $278 $256 $250 $200 $159 $150 $123 $109 $102 $91 $96 $97 $100 $84 $64 $50 $26 $31 $19 $15 $0 Q1 F'21 Q2 F'21 Q3 F'21 Q4 F'21 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 STRONG BALANCE SHEET: Jul
Slide 31: F'24 Financial Summary
F’24 Financial Summary 31 Year Ended July 31, (millions of USD) 2024 2023 Change Sales $ 1,341.4 $ 1,331.9 0.7% Organic Sales Growth 2.6% 5.5% Gross Margin 687.9 657.3 4.7% % of Sales 51.3% 49.4% Research and Development (67.7) (61.4) 10.4% Selling, General and Administrative (376.7) (370.7) 1.6% %
Slide 32: Americas & Asia: Q4 F'24 vs. Q4 F'23
Americas & Asia 32 Q4 F’24 vs. Q4 F’23 (millions of USD) Q4 F’24 SUMMARY: • Revenues increased 0.4% in Q4 of F’24: Q4 F’24 Q4 F’23 Change • Organic growth = + 3.4%. Sales $ 228.5 $ 227.5 0.4% • Fx decrease = (0.8%). • Divestiture = (2.2%). Segment Profit 53.4 50.0 + 6.7% • Organic sales grew 2.3% in
Slide 33: Europe & Australia: Q4 F'24 vs. Q4 F'23
Europe & Australia 33 Q4 F’24 vs. Q4 F’23 (millions of USD) Q4 F’24 SUMMARY: • Revenues decreased 3.0% in Q4 of F’24: Q4 F’24 Q4 F’23 Change • Organic decline = (1.8%). Sales $ 114.9 $ 118.4 (3.0%) • Fx decrease = (1.2%). • Organic sales declined 2.1% in Europe, primarily due Segment Profit 19.3 18.
Slide 34: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations 35 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 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations 36 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