Brady Corporation
Investor Presentation
March - May 2024
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, projected sales, costs, income, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations.
The use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "project," "plan" or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady's control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: increased cost of raw materials and labor as well as raw material shortages and supply chain disruptions; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; our ability to develop technologically advanced products that meet customer demands; difficulties in protecting our websites, networks and systems against security breaches; Brady's ability to identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; risks associated with the loss of key employees; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; litigation, including product liability claims; adverse impacts of regional epidemics or global pandemics; foreign currency fluctuations; potential write-offs of goodwill and other intangible assets; changes in tax legislation and tax rates; differing interests of voting and non-voting shareholders and changes in the regulatory and business environment around dual-class voting structures; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady's U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the "Risk Factors" section within Item 1A of Part I of Brady's Form 10-K for the year ended July 31, 2023.
These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward- looking statements. Brady does not undertake to update its forward-looking statements except as required by law.
Brady's Mission & Vision | 3 |
Brady will:
Be the expertin safety, identification, and compliance Possess deep knowledge in nicheapplications
Innovateto provide market-leading,high-performance products, complete solution sets, and systems that solve our customers' most complex safety and identification challenges to benefit their business and the environment
Deliver via our own manufacturingcapabilities and exceptional customer service based on a culture of diversity, equity, and inclusion while improving our communities
Leading to
Sustainable Long-Term
Shareholder Value Growth
Summary | 4 |
Global Leader with | Leader in niche safety, identification, and compliance markets. |
Innovative Solutions | Diversified customer base, products, and geographic footprint. |
Long-Term Sustainable Results
Focused on innovation, automation, digital, and geographic expansion.
Expanding in faster-growing end markets with secular tailwinds. History of sustainable efficiency gains.
Strong Sales Growth | Organic Sales in F'23 - 5.5% organic sales growth. |
& Record EPS | Record EPS in F'23 - GAAP EPS of $3.51 was up 21.0% over the |
prior year. | |
Strong Cash | History of strong and improving cash generation. |
Generation | Net cash position as of January 31, 2024. |
Disciplined Capital Allocation
Organic investments throughout the economic cycle.
38 consecutive years of annual dividend increases. Technology-based acquisitions that fit our strategies.
Returned $120.4M to our shareholders in the form of dividends and share buybacks in F'23.
* Diluted EPS Excluding Certain Items is a non-GAAP measure. See appendix.
Geographic Presence
F'23 Sales by Region
(72 facilities in 32 countries)
5%
8%
54%
29%
4%
5
Americas & Asia (F'23):
Identification Solutions = 91% Workplace Safety = 9%
Europe & Australia (F'23):
Identification Solutions = 53% Workplace Safety = 47%
U.S.A. | Rest of Americas | Asia | Europe, Middle East & Africa | Australia |
Brazil, Canada, | China, India, | Belgium, Denmark, Finland, France, | ||
Mexico. | Japan, Malaysia, | Germany, Hungary, Italy, Netherlands, | ||
South Korea, | Norway, Poland, Qatar, Saudi Arabia, | |||
Singapore, | Slovakia, South Africa, Spain, | |||
Thailand, Vietnam. | Sweden, Turkey, UAE, U.K. |
Brady's Regional Divisions | 6 | |
Americas & Asia: | Safety & Facility ID | Wire Identification |
Overview:
- 67% of total revenue.
- 60% sold through distribution / 40% sold direct through field sales, internet, telesales and catalog.
Primary Brands:
- Brady, PDC, Code, Magicard, Seton, and Emed.
Europe & Australia:
Overview:
- 33% of total revenue.
- 40% sold through distribution / 60% sold direct through field sales, internet, telesales and catalog.
Primary Brands:
Product ID | Healthcare ID |
Label Design
Software
People Identification
- Brady, Seton, Signals, Securimed and Magicard.
Brady's Track & Trace Solutions | 7 |
Mobile | RFID Readers |
Nordic ID
and Code
Benchtop | Barcode |
Readers |
Automation Label
Expertise
Core Brady Portfolio
Social Value is Embedded in our Strategy 8
Delivering on our ESG Commitments Drives Long-term Shareholder Value
Environmental
Committed to making a
material positive impact on
the environment.
Energy Efficiency Carbon Emissions Waste-to-Landfill Sustainable Products
Products to Improve Customer Efficiency.
Social
Supporting our communities,
employee engagement, development and growth.
Enhance Our
Communities
Racial Equity
Inclusive Environment
Diverse Workplace
Health and Safety.
Governance
Committed to performance, accountability, and the highest level of ethics.
Transparency
Executive Compensation Board Diversity
Values are Embedded in Brady's Systems and Processes.
Social Value and ESG Highlights | 9 |
We are Making Significant Progress across all Areas |
Green
Products
Water Dissolvable labels designed for use in the laboratory setting, which allow customers to reuse supplies and reduce waste.
Green
Facilities
Milwaukee facilities were Green Tier certified in March 2022 (1 of only 50 WI-based companies at that time).
Enhance Our | Board |
Communities | Committees |
84 | 60% |
Community organizations | Percent of board committees |
supported and > $500K invested | that are chaired by women. |
in racial equity funding.
Diverse | Health | |
Workforce | & Safety | |
32% | 0.53 | |
People of color as a percent of | Total recordable incident rate | |
our total U.S. workforce. | is well below industry | |
averages. | ||
Summary | 10 |
Focused on Organic Sales Growth:
- Innovation, automation, digital and geographic expansion.
- Organic sales growth of 5.5% for the year ended July 31, 2023.
Shifting our Portfolio into Faster-Growing End Markets:
- Code and Nordic ID fill gaps in our industrial track-and-trace product offering.
- Well-positionedin end markets with secular tailwinds.
Driving Strong Profit Improvements and Returning Funds to our Shareholders:
- Record EPS in F'23 with 21.0% growth over F'23.
- Executing sustainable process improvements.
- Returned $120.4M to our shareholders in F'23 through dividends and share buybacks.
Investments and Financial Strength Expected to Bode Well for the Future:
- Our on-going growth investments, strong balance sheet, and our focus on execution position us well for the future.
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Disclaimer
Brady Corporation published this content on 22 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 22:44:41 UTC.