Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-14959 BRADY CORPORATION (Exact name of registrant as specified in charter) Wisconsin 39-0178960 (State or other jurisdiction of inco ...

Brady Corporation (NYSE:BRC) Q3 2021 Earnings Conference Call May 20, 2021 10:30 AM ET Company Participants Ann Thornton - Chief Accounting Officer Michael Nauman - President and Chief Executive Officer Aaron Pearce - CFO Conference Call Participants Michael McGinn - Wells Fargo Keith Housum - Northcoast Research Steve Ferazani - Sidoti Operator Good day, and thank you for standing by. Welcome to the Third Quarter 2021 Brady Corporation Earnings Conference Call [Operator Instructions]. Please be advised tha ...

Table of Contents Title of each class Trading Symbol Name of each exchange on which registered Class A Nonvoting Common Stock, par value $0.01 per share BRC New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended April 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Pe ...

Financial Data and Key Metrics Changes - Sales in Q2 2021 were $265.8 million, a decline of 3.9% compared to the previous year [19] - Pretax income decreased by 7% to $39.4 million, down from $42.4 million in the same quarter last year [19][27] - Diluted EPS was $0.59, compared to $0.62 in the second quarter of last year [19][28] - Gross profit margin was 48.7%, down from 50.3% year-on-year, reflecting a 160 basis point decline [23] - SG&A expenses decreased to $82.2 million from $87.4 million, with SG&A as a percentage of sales down to 30.9% from 31.6% [24] Business Line Data and Key Metrics Changes - Identification Solutions (IDS) sales declined by 5.4% to $194.2 million, with an organic sales decline of 6.9% [38] - Workplace Safety (WPS) sales grew by 0.4%, but organic sales declined by 4.8% [48] - IDS segment profit was $39 million, a slight decrease from $40.7 million, but segment profit as a percentage of sales increased to 20.1% [43] - WPS segment profit decreased to $3.5 million from $5.5 million, driven by revenue decline in North America [54] Market Data and Key Metrics Changes - Organic sales in Asia for IDS grew by over 10% compared to the previous year [40] - Demand in the Healthcare business improved but remained below pre-pandemic levels, with a 6% year-on-year decline [41] - The North American WPS business faced challenges, particularly with micro companies affected by shutdowns [48][49] Company Strategy and Development Direction - The company is focused on controlling costs while investing in growth, particularly in R&D and marketing [9][12] - There is a strong emphasis on digital marketing and enhancing online presence to drive sales growth [15][84] - The company is expanding geographically into underserved markets with growth potential, including India and Southeast Asia [13] - The strategy includes maintaining a strong balance sheet to support investments and shareholder returns [18][57] Management's Comments on Operating Environment and Future Outlook - The macro environment remains challenging due to the ongoing pandemic, but there is optimism for recovery as vaccines are rolled out [8][33] - Management expects a choppy recovery, with guidance for diluted EPS in the range of $2.48 to $2.58 for the fiscal year [35][36] - Confidence in revenue growth is based on strong cash flow and a solid balance sheet, allowing for continued investment in growth initiatives [17][37] Other Important Information - The company generated $36.1 million in cash flow from operating activities, a 153% increase from the previous year [28][29] - The cash balance increased to $277.6 million with no debt, allowing for flexibility in capital allocation [30] - The company is committed to increasing investments in R&D, with $9.9 million spent in the quarter [26] Q&A Session Summary Question: Can you quantify the returns on R&D investments and share gains? - Management indicated that new products typically take four to five years to reach full revenue, suggesting a larger rise in future revenues due to current investments [60][61] Question: How should we think about margins in IDS? - Management believes proprietary products will help increase margins, despite past reductions in non-proprietary products [63] Question: What is the impact of event-related products on revenue? - Management noted significant declines in event-related businesses but expects a rapid recovery once events resume [64][66] Question: Are there additional costs affecting Workplace Safety margins? - Management acknowledged shipping challenges but emphasized that the primary issue was product mix rather than significant additional costs [71][72] Question: What are the expectations for cash flow and CapEx in the second half? - Management expects strong cash generation in the third and fourth quarters, with CapEx projected to remain around 2% of sales [75][78] Question: Can you elaborate on the digital sales strategy? - Management highlighted significant improvements in digital presence and customer engagement, indicating strong year-over-year growth in digital sales [81][87] Question: What is the M&A strategy moving forward? - Management is focused on strategic acquisitions that align with long-term growth objectives, emphasizing a deliberate approach to M&A [90][92]

Table of Contents Title of each class Trading Symbol Name of each exchange on which registered Class A Nonvoting Common Stock, par value $0.01 per share BRC New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended January 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition ...

Financial Data and Key Metrics Changes - Sales in Q1 2021 were $277.2 million, reflecting an organic sales decline of 4.9% and a 1.5% increase from foreign currency translation [14] - Operating income increased by 3.2% and pre-tax income rose by 1.6% compared to Q1 2020 [14] - Diluted EPS decreased to $0.64 from $0.70 in the previous year, with a consistent tax rate adjustment indicating a potential increase of approximately $0.02 in EPS if tax rates were aligned [16][26] - Gross profit margin slightly decreased to 48.9% from 49.3% year-on-year, attributed to reduced sales volumes in the ID Solutions business [19] Business Line Data and Key Metrics Changes - Workplace Safety (WPS) sales grew by 9.8%, with organic sales increasing by 5.5%, driven by COVID-19 related products [44] - Identification Solutions (IDS) sales declined by 7.8%, with an organic sales decline of 8.4%, although showing improvement from a 21.7% decline in the previous quarter [35] - WPS segment profit increased to $8 million from $5.2 million in the previous year, indicating a strong incremental margin of 40% [49] Market Data and Key Metrics Changes - Organic sales in Asia performed better than in the Americas and Europe, with modest declines in Asia compared to larger declines in the other regions [36] - Demand in the healthcare business improved but remained challenged, with an 8% year-on-year decline in healthcare product sales, an improvement from a nearly 25% decline in the previous quarter [37] Company Strategy and Development Direction - The company is focused on long-term growth while managing short-term costs, aiming to capture growth and drive shareholder value [9] - Investments in R&D and new product development remain a priority, with a commitment to increasing R&D spending over time [22][24] - The company is in a net cash position, allowing for continued investments and shareholder returns, with a disciplined approach to capital allocation [29][30] Management's Comments on Operating Environment and Future Outlook - The ongoing COVID-19 pandemic presents significant uncertainty and risks to future revenues and profitability, but the company is focused on controlling costs and investing in growth [11] - Management expressed optimism about the future of the IDS business due to steady improvements and investments in sales and marketing [7] - The company is committed to maintaining its strong financial position and generating outsized returns as industrial production improves globally [34][51] Other Important Information - The company generated $62.8 million in cash flow from operating activities, representing a 62% increase compared to Q1 2020 [27] - The cash balance increased to $256.3 million with no outstanding debt, even after returning $14.1 million to shareholders [29] Q&A Session Summary Question: Did you provide any order or monthly sales cadence? - Management noted that there have been sequential improvements in IDS, with a steady pattern of improvement observed [53] Question: Can you frame the differential between COVID and non-COVID products in WPS? - Management confirmed that they sell various COVID-related products, including masks and safety signage, while also maintaining strong sales of core products [54] Question: How has the business changed from a sales perspective with potential lockdowns? - Management highlighted their ability to keep factories running and adapt sales strategies through digital campaigns, ensuring customer engagement [57] Question: What gives confidence in retaining customers post-COVID? - Management indicated strong repurchase patterns from new customers, with non-COVID business growing alongside initial COVID-related sales [58]

Table of Contents Title of each class Trading Symbol Name of each exchange on which registered Class A Nonvoting Common Stock, par value $0.01 per share BRC New York Stock Exchange Non-accelerated filer ☐ Smaller reporting company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended October 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE ...

Brady Corporation (NYSE:BRC) Q4 2020 Earnings Conference Call September 16, 2020 10:30 AM ET Company Participants Ann Thornton - Chief Accounting Officer Michael Nauman - President and Chief Executive Officer Aaron Pearce - Chief Financial Officer Conference Call Participants Joe Mondillo - Sidoti Michael McGinn - Wells Fargo Keith Housum - Northcoast Research Operator Ladies and gentlemen, thank you for standing by. And welcome to the Brady Corporation Fourth Quarter 2020 Earnings Conference Call. At this ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-14959 BRADY CORPORATION (Exact name of registrant as specified in charter) Wisconsin 39-0178960 (State or other jurisdiction of inco ...

Financial Data and Key Metrics Changes - Brady Corporation reported Q3 2020 sales of $265.9 million, reflecting a 6% organic sales decline and a 2.2% decline due to foreign currency translation [27] - Pretax income decreased by 45.9%, while diluted EPS fell 60% to $0.26 compared to $0.65 in the same quarter last year [28] - The company recorded $13.8 million in non-cash impairment charges, significantly impacting earnings [28][29] - Cash flow from operations was $42.8 million, with free cash flow at $34.3 million, marking the strongest quarterly cash generation of the year [22][45] Business Line Data and Key Metrics Changes - Organic sales in the Identification Solutions (IDS) division declined 8.2%, while the Workplace Safety (WPS) division saw a slight growth of 0.2% [35][63] - The IDS business experienced a 27.6% decline in April, while WPS in Australia grew over 30% during the same period [54][63] - The IDS segment profit was $36.4 million, down from $39.9 million in the previous year, but profit as a percentage of sales improved slightly [58] Market Data and Key Metrics Changes - Organic sales in North America and Europe declined significantly due to shutdowns, while China showed mid-single-digit organic growth [23][24] - The Australian market performed exceptionally well, with over 30% growth, attributed to effective service and product supply [24][63] - The company added over 20,000 new customers in the WPS segment, indicating a strong response to COVID-19 related products [68] Company Strategy and Development Direction - The company aims to invest in growth despite economic challenges, focusing on sales-generating resources and new product development [12][13] - Brady is committed to maintaining a strong balance sheet and cash generation while driving efficiencies and reducing costs [18][26] - The strategy includes a focus on customer service and a multi-channel business model to strengthen customer relationships [14][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment but expressed confidence in the company's strong financial position and ability to thrive [12][80] - The company withdrew its financial guidance for the fiscal year due to uncertainty in revenue and earnings visibility [50] - Management emphasized the importance of continuing investments in innovation and efficiency to emerge stronger post-crisis [53][80] Other Important Information - The company incurred costs related to severance and facility closures, but these were offset by reduced incentive-based compensation [31][33] - The gross profit margin was 48.7%, a decrease of 160 basis points from the previous year, but operational efficiency helped maintain strong margins [37][39] - R&D spending was $9.8 million, with a commitment to increase investments over time despite current reductions [41][42] Q&A Session Summary Question: Discussion on WPS and consulting approach - Management noted an increase in consultative interactions leading to $11 million in revenue related to COVID-19, with a positive impact on non-COVID product lines as well [82][84] Question: Inventory levels and destocking - Management indicated that inventory levels have stabilized after initial stocking by distributors, with a trend towards normal levels [86] Question: Insights on IDS performance in Asia - Management highlighted that Asia, particularly China, is showing signs of recovery, but there are concerns about potential impacts from Western economies [90][91] Question: Cost reductions and permanent changes - Management stated that while some cost reductions are temporary, there are permanent changes such as facility closures and reduced catalog costs that will not return to previous levels [105][106] Question: Manufacturing footprint and structural changes - Management emphasized the strength of their manufacturing footprint and the commitment to remain close to customers, avoiding further distance in supply chains [110][112]