Document

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 6, 2017

(Exact name of registrant as specified in its charter)

Commission File Number 1-14959




Wisconsin		39-0971239
(State of Incorporation)		(IRS Employer Identification No.)

6555 West Good Hope Road

Milwaukee, Wisconsin 53223

(Address of Principal Executive Offices and Zip Code)

(Registrant’s Telephone Number)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)



¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 or the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Item 2.02	RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On September 7, 2017, Brady Corporation (the “Company”) issued a press release announcing its fiscal 2017 fourth quarter financial results. A copy of the press release is being furnished to the Securities and Exchange Commission as Exhibit 99.1 attached hereto and is incorporated herein by reference.



Item 7.01	REGULATION FD DISCLOSURE

On September 7, 2017, the Company hosted a conference call related to its fiscal 2017 fourth quarter financial results. A copy of the slides referenced in the conference call, which is also posted on the Company's website, is being furnished to the Securities and Exchange Commission as Exhibit 99.3 attached hereto and is incorporated herein by reference.



Item 8.01	OTHER EVENTS

Increase in Annual Dividend

On September 6, 2017, the Company announced that its Board of Directors had increased the annual cash dividend on its Class A Common Stock from $0.82 to $0.83 per share. A quarterly dividend in the amount of $0.2075 per share will be paid on October 31, 2017, to shareholders of record as of the close of business on October 10, 2017. A copy of the press release regarding the dividend is attached hereto as Exhibit 99.2 and is incorporated herein by reference.



Item 9.01	FINANCIAL STATEMENTS AND EXHIBITS



EXHIBIT NUMBER	DESCRIPTION
99.1	Press Release of Brady Corporation, dated September 7, 2017, relating to fourth quarter fiscal 2017 financial results.
99.2	Press Release of Brady Corporation, dated September 6, 2017, relating to increase in annual dividend.
99.3	Informational slides provided by Brady Corporation, dated September 7, 2017, relating to fourth quarter fiscal 2017 financial results.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



		BRADY CORPORATION


Date: September 7, 2017		/s/ AARON J. PEARCE
		Aaron J. Pearce
		Chief Financial Officer and Treasurer

For More Information:

Investor contact: Ann Thornton 414-438-6887

Media contact: Kate Venne 414-358-5176

Brady Corporation Reports Fiscal 2017 Fourth Quarter Results and Announces its Fiscal 2018 EPS Guidance

Organic revenues increased 3.0 percent for the quarter ended July 31, 2017.

Earnings before income taxes increased 12.2 percent to $35.9 million in the fourth quarter of fiscal 2017 compared to $32.0 million in the same quarter of the prior year.

Earnings per diluted Class A Nonvoting Common Share were $0.48 in the fourth quarter of fiscal 2017 compared to $0.49 in the same quarter of the prior year.

Earnings per diluted Class A Common Share guidance for the full year ending July 31, 2018 announced at a range of $1.85 to $1.95.

MILWAUKEE (September 7, 2017)--Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2017 fourth quarter ended July 31, 2017.

Quarter Ended July 31, 2017 Financial Results:

Net earnings for the quarter ended July 31, 2017, were $25.2 million compared to $25.1 million in the same quarter last year. Net earnings were significantly impacted by quarterly fluctuations in the income tax rate which was 29.7 percent for the quarter ended July 31, 2017, and 21.5 percent for the quarter ended July 31, 2016. Earnings before income taxes increased 12.2 percent to $35.9 million for the quarter ended July 31, 2017 compared to $32.0 million for the quarter ended July 31, 2016.

Earnings per diluted Class A Nonvoting Common Share were $0.48 for the quarter ended July 31, 2017, compared to $0.49 in the same quarter last year.

Sales for the quarter ended July 31, 2017, increased 2.5 percent to $289.2 million compared to $282.1 million in the same quarter last year. Total organic sales increased 3.0 percent and the impact of foreign currency translation decreased sales by 0.5 percent. By segment, organic sales increased 4.4 percent in Identification Solutions and decreased 0.6 percent in Workplace Safety.

Year Ended July 31, 2017 Financial Results:

Net earnings for the year ended July 31, 2017, were $95.6 million compared to $80.1 million last year. Earnings before income taxes increased 15.8 percent to $126.6 million for the year ended July 31, 2017, compared to $109.3 million last year.

Earnings per diluted Class A Nonvoting Common Share were $1.84 for the year ended July 31, 2017, compared to $1.58 last year.

Sales for the year ended July 31, 2017, decreased 0.7 percent to $1.11 billion compared to $1.12 billion last year. Total organic sales increased 0.5 percent and foreign currency translation decreased sales by 1.2 percent. By segment, organic sales increased 1.6 percent in Identification Solutions and decreased 2.0 percent in Workplace Safety.

“We finished fiscal 2017 with our eighth consecutive quarter of year-over-year improvement in pre-tax earnings. This is a direct result of our organic sales growth, our consistent focus on driving efficiencies throughout our SG&A structure, and our improved manufacturing processes,” said Brady’s President and Chief Executive Officer, J. Michael Nauman. “Organic sales growth was 3.0 percent this quarter. Our Identification Solutions business was the driver of our organic sales growth and is where we have been investing the most in the development of innovative new products. This is beginning to generate improved organic sales trends. Our priorities for fiscal 2018 remain unchanged, which are to grow our pipeline of innovative new products, accelerate organic sales growth, provide excellent customer service and deliver operational efficiencies throughout our business. We continue to focus on the long-term by taking actions today that we believe will result in sustainable organic sales growth into the future.”

“The benefits from our organic sales growth were supplemented by our focus on operational efficiencies, our drive for sustainable efficiency gains in our general and administrative cost structure, and a strong focus on cash generation,” said Brady’s Chief Financial Officer, Aaron Pearce. “During the year ended July 31, 2017, we increased our pre-tax earnings by 15.8 percent, increased net earnings by 19.4 percent, and generated $144.0 million of cash from operating activities, which represents 151 percent of net earnings. Our cash generation was primarily used to return funds to our shareholders in the form of dividends and to strengthen our balance sheet. We finished the year in a net cash position of $26.2 million compared to a net debt position of $75.7 million at the start of this fiscal year. Our balance sheet provides significant flexibility for investments to drive long-term shareholder value.”

Fiscal 2018 Guidance:

The Company anticipates organic sales to increase in the low-single digits for the year ending July 31, 2018. Brady expects earnings per diluted Class A Common Share to range from $1.85 to $1.95. This guidance is based upon a full-year income tax rate of approximately 27 percent to 29 percent, which is higher than fiscal 2017, and depreciation and amortization expense of approximately $26 million. The Company expects to continue to achieve efficiency gains in its manufacturing facilities and in selling, general and administrative expenses while increasing investments in research and development expenses by approximately 10 percent when compared to fiscal 2017. Capital expenditures are anticipated to be approximately $30 million during the year ending July 31, 2018. The Company’s fiscal 2018 guidance is based on foreign currency exchange rates as of July 31, 2017.

A webcast regarding Brady’s fiscal 2017 fourth quarter financial results will be available at www.bradycorp.com beginning at 9:30 a.m. Central Time today.

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2017, employed approximately 6,300 people in its worldwide businesses. Brady’s fiscal 2017 sales were approximately $1.11 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradycorp.com.

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, earnings, 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” or “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: our ability to compete effectively or to successfully execute our strategy; Brady’s ability to develop technologically advanced products that meet customer demands; difficulties in protecting our websites, networks, and systems against security breaches; deterioration or instability in the global economy and financial markets; decreased demand for our products; Brady’s ability to retain large customers; risks associated with the loss of key employees; changes in tax legislation and tax rates; Brady’s ability to execute facility consolidations and maintain acceptable operational service metrics; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; litigation, including product liability claims; divestitures and contingent liabilities from divestitures; Brady’s ability to properly identify, integrate, and grow acquired companies; foreign currency fluctuations; potential write-offs of Brady’s substantial intangible assets; differing interests of voting and non-voting shareholders; Brady’s ability to meet certain financial covenants required by our debt agreements; numerous other matters of national, regional and global scale, including 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, 2016.

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 CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited; Dollars in thousands, except per share data)



	Three months ended July 31,		Year ended July 31,
	2017		2016		2017		2016
Net sales	$	289,212			$	282,106			$	1,113,316		$	1,120,625
Cost of products sold	145,345			141,017			555,024			561,852
Gross margin	143,867			141,089			558,292			558,773
Operating expenses:
Research and development	11,047			9,268			39,624			35,799
Selling, general and administrative	96,525			98,418			387,653			405,096
Total operating expenses	107,572			107,686			427,277			440,895

Operating income	36,295			33,403			131,015			117,878

Other income (expense):
Investment and other income (expense)	561			321			1,121			(709	)
Interest expense	(939	)		(1,705	)		(5,504	)		(7,824	)

Earnings before income taxes	35,917			32,019			126,632			109,345

Income tax expense	10,675			6,883			30,987			29,235

Net earnings	$	25,242			$	25,136			$	95,645		$	80,110


Net earnings per Class A Nonvoting Common Share:
Basic	$	0.49			$	0.50			$	1.87		$	1.59
Diluted	$	0.48			$	0.49			$	1.84		$	1.58
Dividends	$	0.21			$	0.20			$	0.82		$	0.81

Net earnings per Class B Voting Common Share:
Basic	$	0.49			$	0.50			$	1.86		$	1.57
Diluted	$	0.48			$	0.49			$	1.83		$	1.56
Dividends	$	0.21			$	0.20			$	0.80		$	0.79

Weighted average common shares outstanding (in thousands):
Basic	51,307			50,355			51,056			50,541
Diluted	52,180			50,834			51,956			50,769

BRADY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited; Dollars in thousands)



	July 31, 2017		July 31, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	133,944			$	141,228
Accounts receivable—net	149,638			147,333
Inventories:
Finished products	69,760			64,313
Work-in-process	18,117			16,678
Raw materials and supplies	19,147			18,436
Total inventories	107,024			99,427
Prepaid expenses and other current assets	17,208			19,436
Total current assets	407,814			407,424
Other assets:
Goodwill	437,697			429,871
Other intangible assets	53,076			59,806
Deferred income taxes	35,456			27,238
Other	18,077			17,181
Property, plant and equipment:
Cost:
Land	7,470			5,809
Buildings and improvements	98,228			95,355
Machinery and equipment	261,192			256,549
Construction in progress	4,109			2,842
	370,999			360,555
Less accumulated depreciation	272,896			258,111
Property, plant and equipment—net	98,103			102,444
Total	$	1,050,223			$	1,043,964
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Notes payable	$	3,228			$	4,928
Accounts payable	66,817			62,245
Wages and amounts withheld from employees	58,192			45,998
Taxes, other than income taxes	7,970			7,403
Accrued income taxes	7,373			6,136
Other current liabilities	43,618			40,017
Total current liabilities	187,198			166,727
Long-term obligations, less current maturities	104,536			211,982
Other liabilities	58,349			61,657
Total liabilities	350,083			440,366
Stockholders’ investment:
Common Stock:
Class A nonvoting common stock—Issued 51,261,487 and outstanding 47,814,818 and 46,920,974 shares, respectively	513			513
Class B voting common stock—Issued and outstanding, 3,538,628 shares	35			35
Additional paid-in capital	322,608			317,001
Earnings retained in the business	507,136			453,371
Treasury stock—3,446,669 and 4,340,513 shares, respectively of Class A nonvoting common stock, at cost	(85,470	)		(108,714	)
Accumulated other comprehensive loss	(44,682	)		(54,745	)
Other	—			(3,863	)
Total stockholders’ investment	700,140			603,598
Total	$	1,050,223			$	1,043,964

BRADY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; Dollars in thousands)



	Year ended July 31,
	2017		2016
Operating activities:
Net earnings	$	95,645			$	80,110
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	27,303			32,432
Stock-based compensation expense	9,495			8,154
Deferred income taxes	(8,618	)		2,085
Changes in operating assets and liabilities:
Accounts receivable	766			8,159
Inventories	(5,687	)		4,833
Prepaid expenses and other assets	1,812			475
Accounts payable and accrued liabilities	22,255			3,928
Income taxes	1,061			(1,200	)
Net cash provided by operating activities	144,032			138,976

Investing activities:
Purchases of property, plant and equipment	(15,167	)		(17,140	)
Other	(86	)		1,724
Net cash used in investing activities	(15,253	)		(15,416	)

Financing activities:
Payment of dividends	(41,880	)		(40,808	)
Proceeds from exercise of stock options	19,728			5,246
Purchase of treasury stock	—			(23,552	)
Proceeds from borrowing on credit facilities	180,320			96,276
Repayment of borrowing on credit facilities	(244,268	)		(91,759	)
Principal payments on debt	(49,302	)		(42,514	)
Debt issuance costs	—			(803	)
Income tax on equity-based compensation, and other	(839	)		(1,662	)
Net cash used in financing activities	(136,241	)		(99,576	)

Effect of exchange rate changes on cash	178			2,752

Net (decrease) increase in cash and cash equivalents	(7,284	)		26,736
Cash and cash equivalents, beginning of period	141,228			114,492

Cash and cash equivalents, end of period	$	133,944			$	141,228

BRADY CORPORATION AND SUBSIDIARIES

(Unaudited; Dollars in thousands)



	Three months ended July 31,		Year ended July 31,
	2017		2016		2017		2016
SALES
ID Solutions	$	211,286			$	203,229			$	800,392		$	795,511
Workplace Safety	77,926			78,877			312,924			325,114
Total	$	289,212			$	282,106			$	1,113,316		$	1,120,625

SALES INFORMATION
ID Solutions
Organic	4.4	%		(0.6	)%		1.6	%		(0.7	)%
Currency	(0.4	)%		(1.2	)%		(1.0	)%		(3.1	)%
Total	4.0	%		(1.8	)%		0.6	%		(3.8	)%
Workplace Safety
Organic	(0.6	)%		(1.8	)%		(2.0	)%		(0.7	)%
Currency	(0.6	)%		(1.8	)%		(1.7	)%		(5.0	)%
Total	(1.2	)%		(3.6	)%		(3.7	)%		(5.7	)%
Total Company
Organic	3.0	%		(0.9	)%		0.5	%		(0.7	)%
Currency	(0.5	)%		(1.4	)%		(1.2	)%		(3.7	)%
Total	2.5	%		(2.3	)%		(0.7	)%		(4.4	)%

SEGMENT PROFIT
ID Solutions	$	35,896			$	31,891			$	130,572		$	112,276
Workplace Safety	7,939			9,102			25,554			30,792
Total	$	43,835			$	40,993			$	156,126		$	143,068
SEGMENT PROFIT AS A PERCENT OF SALES
ID Solutions	17.0	%		15.7	%		16.3	%		14.1	%
Workplace Safety	10.2	%		11.5	%		8.2	%		9.5	%
Total	15.2	%		14.5	%		14.0	%		12.8	%



	Three months ended July 31,		Year ended July 31,
	2017		2016		2017		2016
Total segment profit	$	43,835			$	40,993			$	156,126		$	143,068
Unallocated amounts:
Administrative costs	(7,540	)		(7,590	)		(25,111	)		(25,190	)
Investment and other income (expense)	561			321			1,121			(709	)
Interest expense	(939	)		(1,705	)		(5,504	)		(7,824	)
Earnings before income taxes	$	35,917			$	32,019			$	126,632		$	109,345

For More Information Contact:

Investor Contact: Ann Thornton (414) 438-6887

Media Contact: Kate Venne (414) 358-5176

Brady Corporation increases its dividend to shareholders for the 32nd consecutive year

MILWAUKEE (September 6, 2017) - On September 6, 2017, Brady Corporation’s (NYSE: BRC) Board of Directors announced an increase in its annual dividend to shareholders of the Company’s Class A Common stock from $0.82 per share to $0.83 per share. A quarterly dividend to shareholders of the company's Class A Common Stock of $0.2075 per share will be paid on October 31, 2017, to shareholders of record at the close of business on October 10, 2017. This dividend represents the 32^nd consecutive annual increase in dividends.

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2016, employed approximately 6,500 people in its worldwide businesses. Brady’s fiscal 2016 sales were approximately $1.12 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradycorp.com.

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September 7, 2017 Brady Corporation F’17 Q4 Financial Results

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2Forward-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, projected sales, costs, earnings, 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” or “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: our ability to compete effectively or to successfully execute our strategy; Brady’s ability to develop technologically advanced products that meet customer demands; difficulties in protecting our websites, networks, and systems against security breaches; deterioration or instability in the global economy and financial markets; decreased demand for our products; Brady’s ability to retain large customers; risks associated with the loss of key employees; changes in tax legislation and tax rates; Brady’s ability to execute facility consolidations and maintain acceptable operational service metrics; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; litigation, including product liability claims; divestitures and contingent liabilities from divestitures; Brady’s ability to properly identify, integrate, and grow acquired companies; foreign currency fluctuations; potential write-offs of Brady’s substantial intangible assets; differing interests of voting and non-voting shareholders; Brady’s ability to meet certain financial covenants required by our debt agreements; numerous other matters of national, regional and global scale, including 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, 2016. 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.

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3Q4 F’17 Financial Summary • Sales increased 2.5% to $289.2M in Q4 of F’17 vs. $282.1M in Q4 of F’16. – Organic sales increased 3.0%. – Foreign currency translation reduced sales by 0.5%. • Gross profit margin of 49.7% in Q4 of F’17 compared with 50.0% in Q4 of F’16. • SG&A expense of $96.5M (33.4% of sales) in Q4 of F’17 compared with $98.4M (34.9% of sales) in Q4 of F’16. • Earnings before income taxes increased 12.2% to $35.9M in Q4 of F’17 compared with $32.0M in Q4 of F’16. • Net earnings of $25.2M in Q4 of F’17 compared with $25.1M in Q4 of F’16. • Net earnings per Class A Diluted Nonvoting Common Share of $0.48 in Q4 of F’17, compared with $0.49 in Q4 of F’16. • Net cash provided by operating activities of $52.9M in Q4 of F’17 compared with $40.4M in Q4 of F’16.

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4Sales Overview • 3.0% increase in organic sales: • ID Solutions – Organic sales increase of 4.4%. • Workplace Safety – Organic sales decline of (0.6%). • (0.5%) decrease due to currency translation. Q4 F’17 SALES: • Organic sales increased in all three regions of the IDS business. • Organic sales increased in WPS Europe and Australia offset by a decline in North America. • Foreign currency translation headwinds persisted through most of our fourth quarter. Q4 F’17 SALES COMMENTARY: $283 $269 $287 $282 $280 $268 $276 $289 $255 $265 $275 $285 $295 $305 Q1 F'16 (2.2%) Q2 F'16 0.4% Q3 F'16 (0.1%) Q4 F'16 (0.9%) Q1 F'17 (0.2%) Q2 F'17 1.3% Q3 F'17 (1.9%) Q4 F'17 3.0%Organic Sales Growth SALES (millions of USD)

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Gross Profit Margin 5 • GPM of 49.7% in Q4 of F’17 compared with 50.0% in Q4 of F’16. • GPM improved in IDS Americas and Europe businesses due to operational efficiency gains, offset by declines in the WPS business due to pricing pressures in certain product categories. Q4 F’17 - GROSS PROFIT MARGIN: $139 $133 $145 $141 $140 $134 $140 $144 49.2% 49.5% 50.7% 50.0% 50.1% 50.1% 50.7% 49.7% 30% 35% 40% 45% 50% 55% $100 $125 $150 $175 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 GROSS PROFIT & GPM% (millions of USD)

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SG&A Expense 6 • SG&A expense declined $1.9M, finishing at $96.5M in Q4 of F’17 compared to $98.4M in Q4 of F’16, continuing the general downward trend. • The declines in SG&A expense were due to our focused efforts on driving sustainable efficiencies across the organization, while improving the overall customer experience. Approximately 25% of the decline from Q4 of F’16 to Q4 of F’17 was due to foreign currency translation. Q4 F’17 - SG&A EXPENSE: $101 $100 $106 $98 $98 $95 $98 $97 35.6% 37.3% 36.9% 34.9% 35.0% 35.3% 35.7% 33.4% 25% 28% 30% 33% 35% 38% 40% $80 $90 $100 $110 $120 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 SG&A EXPENSE AND SG&A EXPENSE AS A % of SALES (millions of USD)

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7Net Earnings & EPS • Q4 F’17 net earnings were $25.2M compared to $25.1M in Q4 of F’16. • The income tax rate significantly impacted our Q4 earnings as the tax rate was 21.5% in Q4 of F’16 and 29.7% in Q4 of F’17. • Earnings before income taxes increased 12.2% to $35.9M in Q4 of F’17 compared with $32.0M in Q4 of F’16. • The increase in pre-tax earnings was driven by the 3.0% organic sales growth and efficiencies in SG&A throughout both the IDS and WPS businesses. Q4 F’17 – NET EARNINGS & EPS: $0.37 $0.30 $0.42 $0.49 $0.44 $0.49 $0.43 $0.48 $0.00 $0.20 $0.40 $0.60 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 NET EARNINGS PER CLASS A DILUTED SHARE $19 $15 $21 $25 $23 $25 $23 $25 $0 $10 $20 $30 $40 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 NET EARNINGS (millions of USD)

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8Cash Generation & Uses • Cash flow from operating activities was $52.9M in Q4 of F’17 compared to $40.4M in Q4 of F’16. • Cash flow from operating activities was positively impacted by the timing of certain payments in Q4 of F’17. • Free cash flow* was $48.6M in Q4 of F’17 compared to $30.8M in Q4 of F’16. • Returned $10.5M to our shareholders in the form of dividends in Q4 of F’17. CASH FLOWS IN Q4 OF F’17: * Free Cash Flow is calculated as Net Cash Provided by Operating Activities less Capital Expenditures. $30 $28 $40 $40 $34 $19 $38 $53 $0 $10 $20 $30 $40 $50 $60 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) (millions of USD) 3 Mos. Ended Jul. 31, 2017 3 Mos. Ended Jul. 31, 2016 Year Ended Jul. 31, 2017 Year Ended Jul. 31, 2016 Cash Balance - Beginning of Period 129.1$ 141.6$ 141.2$ 114.5$ Cash Flow from Operating Activities 52.9 40.4 144.0 139.0 Capital Expenditures (4.3) (9.7) (15.2) (17.1) Repurchase of Stock - - - (23.6) Proceeds from Exercise of Stock Options 1.1 4.6 19.7 5.2 Dividends (10.5) (10.2) (41.9) (40.8) Debt Repayments - Net (36.5) (24.3) (113.3) (38.0) Effect of Exchange Rate on Cash 2.7 (0.5) 0.2 2.8 Other (0.6) (0.7) (0.8) (0.8) Cash Balance - End of Period 133.9$ 141.2$ 133.9$ 141.2$

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Net Cash (Debt) 9 • July 31, 2017 cash = $133.9M and debt = $107.8M. • Net debt declined $101.9M over the last twelve months, finishing in a net cash position of $26.2M at July 31, 2017 compared to net debt of $75.7M at July 31, 2016. • Balance sheet provides flexibility for future cash uses. STRONG BALANCE SHEET: $(140) $(132) $(101) $(76) $(50) $(38) $(9) $26 -$200 -$150 -$100 -$50 $0 $50 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 NET CASH (DEBT) (millions of USD) DEBT STRUCTURE (millions of USD) Interest Rate July 31, 2017 Balance July 31, 2016 Balance Revolver Borrowings: USD-denominated 1.94% (17.0)$ (112.0)$ EUR-denominated 0.75% (34.3) - China Borrowings: USD & CNY-denominated 3.52% (3.2) (4.9) Private Placements: USD-denominated 2007 Series 5.33% - (16.3) EUR-den. 2010 Series (7-yr.) 3.71% - (33.5) EUR-den. 2010 Series (10-yr.) 4.24% (53.2) (50.2) TOTAL DEBT (107.7)$ (216.9)$ Cash and Cash Equivalents 133.9 141.2 NET CASH (DEBT) 26.2$ (75.7)$

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10F’17 Financial Summary 1 2017 2016 Change Sales 1,113.3$ 1,120.6$ Organic Sales 0.5% (0.7%) Gross Margin 558.3 558.8 % of Sales 50.1% 49.9% Research and Development (39.6) (35.8) + 11% Selling, General and Administrative (387.7) (405.1) - 4% % of Sales 34.8% 36.2% Operating Income 131.0 117.9 + 11% Earnings before Income Taxes 126.6 109.3 + 16% Income Tax Rate 24.5% 26.7% Net Earnings 95.6$ 80.1$ + 19% Net Earnings per diluted Class A Nonvoting Common Share 1.84$ 1.58$ + 16% Net Cash (Debt) Position 26.2$ (75.7)$ 101.9$ Year Ended July 31,

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11F’18 Guidance F’18 Diluted EPS $1.85 to $1.95 Guidance Assumptions: • Low-single digit organic sales growth. • Full-year depreciation and amortization expense of approximately $26M. • Full-year income tax rate of 27% to 29%. • Full-year capital expenditures of approximately $30M.

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Q4 F’17 vs. Q4 F’16 PERFORMANCE (millions of USD) 12Identification Solutions • Revenues increased 4.0%: • Organic = + 4.4% • Fx = - (0.4)% • Organic sales increased in all regions with low-single digit growth in the Americas and Europe and double- digit growth in Asia. • R&D expenses up 19.2% due to increased investments to develop innovative products. • Segment profit as a percent of sales increased due to ongoing efficiency gains in our operations and selling, general, and administrative expense structures. Q4 F’17 SUMMARY: • Expect low-single digit organic sales growth in F’18. • Expect segment profit to continue to be in the mid-to- high teens as a percent of sales in F’18. OUTLOOK: Q4 F’17 Q4 F’16 Change Sales $ 211.3 $ 203.2 + 4.0% Segment Profit 35.9 31.9 + 12.6% Segment Profit % 17.0% 15.7% + 130 pts $201 $190 $201 $203 $201 $191 $197 $211 13% 12% 16% 16% 16% 15% 17% 17% 5% 7% 9% 11% 13% 15% 17% 19% $180 $190 $200 $210 $220 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 SALES & SEGMENT PROFIT % (millions of USD)

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Q4 F’17 vs. Q4 F’16 PERFORMANCE (millions of USD) 13Workplace Safety • Revenues decreased - (1.2%): • Organic = - (0.6)% • Fx = - (0.6)% • Organic sales declined in the high-single digits in the WPS North America business, partially offset by low- single digit growth in Europe and high-single digit growth in Australia. • Segment profit declined due to decreased organic sales, which includes pricing pressures. These declines were partially mitigated by actions to reduce our cost structure. Q4 F’17 SUMMARY: • Expect approximately flat organic sales in F’18. • Expect segment profit to continue to be in the mid-to- high single digits as a % of sales in F’18. OUTLOOK: Q4 F’17 Q4 F’16 Change Sales $ 77.9 $ 78.9 - 1.2% Segment Profit 7.9 9.1 - 12.8% Segment Profit % 10.2% 11.5% - 130 pts $82 $79 $85 $79 $79 $77 $79 $78 11% 8% 7% 12% 8% 8% 6% 10% 0% 2% 4% 6% 8% 10% 12% 14% $70 $75 $80 $85 $90 Q1 F'16 Q2 F'16 Q3 F'16 Q4 F'16 Q1 F'17 Q2 F'17 Q3 F'17 Q4 F'17 SALES & SEGMENT PROFIT % (millions of USD)

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14Future Financial Performance GDP+ • Unrivaled customer service. • Industry expertise. • Innovative new products. • Integrated solutions creating smarter products. • E-business / digital. Below GDP Organic Growth Organic Sales Growth Organic Revenue Drivers: • Continued pursuit of efficiency gains and simplification. • Expect on-going pricing challenges. • Expect efficiency gains to effectively offset pricing pressures in certain business. Gross Margin Drivers: F’17 Expectation Exiting F’18 Organic Sales Growth 50% - 50.5%50.1% GPM GPM • Localized ownership and accountability. • Focus on sustainable efficiency gains. • Simplified and streamlined organization. • Cost realignment of under-performing businesses. SG&A Drivers: 33.5% - 34.0% of Sales 34.8% of sales SG&A SG&A • Superior cash generation with disciplined and patient cash deployment expected to enhance shareholder value through dividends and share buybacks. EPS Drivers: $2.00/share$1.75/share* EPS EPS * The actual F’17 diluted EPS of $1.84 was adjusted to normalize the income tax rate to 28%.

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15Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our web site at www.bradycorp.com

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