brc-20221116

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): November 16, 2022

(Exact name of registrant as specified in its charter)

Commission File Number 1-14959


Wisconsin		39-0178960
(State or other jurisdiction of incorporation or organization)		(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))

Securities registered pursuant to Section 12(b) of the Act:


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

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 November 17, 2022, Brady Corporation (the “Company”) issued a press release announcing its fiscal 2023 first 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 5.07	SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS

On November 16, 2022, at the Company’s Annual Shareholders’ Meeting, the holders of all of the 3,538,628 shares of the Company’s Class B Common Stock voted unanimously in favor of electing the following persons to serve as the Company’s directors until the next annual meeting of shareholders and until their successors have been elected:

Bradley C. Richardson

Michelle E. Williams


Item 7.01	REGULATION FD DISCLOSURE

On November 17, 2022, the Company hosted a conference call related to its fiscal 2023 first quarter financial results. A copy of the slides referenced in the conference call, which is also posted on the Corporation’s website, is being furnished to the Securities and Exchange Commission as Exhibit 99.2 attached hereto and is incorporated herein by reference.


Item 9.01	FINANCIAL STATEMENTS AND EXHIBITS

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: November 17, 2022

		/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 2023 First Quarter Results

•Sales for the quarter increased 0.3 percent. Organic sales increased 6.9 percent while foreign currency reduced sales by 6.6 percent.

•Diluted EPS increased 17.9 percent to $0.79 in the first quarter of fiscal 2023 compared to $0.67 in the same quarter of the prior year. Diluted EPS Excluding Certain Items* increased 16.7 percent to $0.84 in the first quarter of fiscal 2023 compared to $0.72 in the same quarter of the prior year.

•During the quarter ended October 31, 2022, we returned $23.4 million to our shareholders in the form of dividends and share repurchases.

MILWAUKEE (November 17, 2022) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2023 first quarter ended October 31, 2022.

Quarter Ended October 31, 2022 Financial Results:

Sales for the quarter ended October 31, 2022 increased 0.3 percent, which consisted of an organic sales increase of 6.9 percent and a decrease of 6.6 percent from foreign currency translation. Sales for the quarter ended October 31, 2022 were $322.6 million compared to $321.5 million in the same quarter last year. By segment, sales increased 3.1 percent in Identification Solutions and decreased 9.1 percent in Workplace Safety, which consisted of an organic sales increase of 8.6 percent in Identification Solutions and an organic sales increase of 1.2 percent in Workplace Safety.

Income before income taxes increased 12.6 percent to $50.3 million for the quarter ended October 31, 2022, compared to $44.7 million in the same quarter last year. Income Before Income Taxes Excluding Certain Items* for the quarter ended October 31, 2022, which was adjusted for amortization expense of $3.6 million, was $54.0 million, an increase of 11.3 percent compared to the first quarter of last year.

Net income for the quarter ended October 31, 2022 was $39.4 million compared to $35.0 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share were $0.79 in the first quarter of fiscal 2023, compared to $0.67 in the same quarter last year. Net Income Excluding Certain Items* for the quarter ended October 31, 2022 was $42.2 million and Diluted EPS Excluding Certain Items* for the quarter ended October 31, 2022 was $0.84. Net Income Excluding Certain Items* for the quarter ended October 31, 2021 was $38.0 million, and Diluted EPS Excluding Certain Items* for the quarter ended October 31, 2021 was $0.72.

“Our first quarter results demonstrate our commitment to serving our customers extremely well while making our customers’ jobs easier and safer. This quarter, we once again had strong organic sales growth, with organic growth in each of our two segments. We are investing in sales, marketing, and research and development,

which when combined with our innovative spirit are setting the stage for Brady to continue growing organically,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “Our ability to execute is driving sustained growth across our businesses. Our Identification Solutions segment is performing very well, with organic sales growth and a robust pipeline of new products that help our customers become safer, more efficient, and meet their sustainability goals. In our Workplace Safety segment, we are seeing significant benefits from the actions we took to simplify our product offering, to streamline our cost structure, and to improve our price competitiveness, resulting in a segment profit increase of more than 175 percent this quarter. While we recognize that the macro-economy is uncertain and that foreign currency translation is creating challenges for international organizations such as Brady, we continue to see a positive demand environment, and we have a highly-engaged workforce and a strong balance sheet, which we believe position us for future success.”

“Brady is financially solid and continues to generate significant cash flow in a challenging macro environment. This quarter, we grew organic sales by 6.9 percent and we grew GAAP diluted earnings per share by 17.9 percent,” said Brady’s Chief Financial Officer, Aaron Pearce. “We also returned $11.4 million to our shareholders in the form of dividends and repurchased another $12.1 million worth of shares this quarter. We are in a net cash position of $15.5 million at October 31, 2022, and earlier this week we extended and expanded our revolving line of credit providing additional capacity for future shareholder value enhancing investments.”

Fiscal 2023 Guidance:

The Company’s GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2023 remains unchanged at $3.13 to $3.43 per share, and the Company’s Diluted EPS Excluding Certain Items* guidance for the year ending July 31, 2023 also remains unchanged at $3.30 to $3.60 per share.

The other assumptions included in our fiscal 2023 guidance are effectively unchanged. We expect a full-year income tax rate of approximately 20 percent, depreciation and amortization expense ranging from $32 million to $34 million, and capital expenditures of approximately $32 million. Our fiscal 2023 guidance is based on foreign currency exchange rates as of October 31, 2022 and assumes continued economic growth.

A webcast regarding Brady’s fiscal 2023 first quarter financial results will be available at www.bradycorp.com/investors 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, 2022, employed approximately 5,700 people in its worldwide businesses. Brady’s fiscal 2022 sales were approximately $1.30 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradyid.com.

* Income Before Income Taxes Excluding Certain Items, Net Income Excluding Certain Items, and Diluted EPS Excluding Certain Items are non-GAAP measures. See appendix for more information on these measures, including reconciliations to the most directly comparable GAAP measures.

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,” “continue” 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: increased cost of raw materials, labor and freight as well as material shortages and supply chain disruptions; adverse impacts of the novel coronavirus (“COVID-19”) pandemic or other pandemics; 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; Brady’s ability to identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks, and systems against security breaches; 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; 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; 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, 2022.

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 INCOME

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


	Three months ended October 31,
	2022		2021
Net sales	$	322,569			$	321,475
Cost of goods sold	167,305			166,487
Gross margin	155,264			154,988
Operating expenses:
Research and development	13,933			13,907
Selling, general and administrative	89,945			96,746
Total operating expenses	103,878			110,653

Operating income	51,386			44,335

Other (expense) income:
Investment and other (expense) income	(157)			543
Interest expense	(894)			(182)

Income before income taxes	50,335			44,696

Income tax expense	10,894			9,650

Net income	$	39,441			$	35,046

Net income per Class A Nonvoting Common Share:
Basic	$	0.79			$	0.67
Diluted	$	0.79			$	0.67

Net income per Class B Voting Common Share:
Basic	$	0.78			$	0.66
Diluted	$	0.77			$	0.65

Weighted average common shares outstanding:
Basic	49,868			51,973
Diluted	50,090			52,436

BRADY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)


	October 31, 2022		July 31, 2022
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	114,471			$	114,069
Accounts receivable, net of allowance for credit losses of $6,938 and $7,355, respectively	180,183			183,233
Inventories	195,695			190,023
Prepaid expenses and other current assets	12,902			10,743
Total current assets	503,251			498,068
Property, plant and equipment—net	136,320			139,511
Goodwill	579,404			586,832
Other intangible assets	69,494			74,028
Deferred income taxes	15,061			15,881
Operating lease assets	27,244			31,293
Other assets	19,855			21,719
Total	$	1,350,629			$	1,367,332
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	79,604			$	81,116
Accrued compensation and benefits	57,095			76,764
Taxes, other than income taxes	13,495			12,539
Accrued income taxes	13,943			8,294
Current operating lease liabilities	14,126			15,003
Other current liabilities	65,350			61,458
Total current liabilities	243,613			255,174
Long-term debt	99,000			95,000
Long-term operating lease liabilities	15,558			19,143
Other liabilities	80,733			86,717
Total liabilities	438,904			456,034
Stockholders’ equity:
Common stock:
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 46,176,267 and 46,370,708 shares, respectively	513			513
Class B voting common stock—Issued and outstanding, 3,538,628 shares	35			35
Additional paid-in capital	346,064			345,266
Retained earnings	920,482			892,417
Treasury stock—5,085,220 and 4,890,779 shares, respectively of Class A nonvoting common stock, at cost	(228,855)			(217,856)
Accumulated other comprehensive loss	(126,514)			(109,077)
Total stockholders’ equity	911,725			911,298
Total	$	1,350,629			$	1,367,332

BRADY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; Dollars in thousands)


	Three months ended October 31,
	2022		2021
Operating activities:
Net income	$	39,441			$	35,046
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,665			8,509
Stock-based compensation expense	2,958			4,129
Deferred income taxes	(1,705)			(625)
Other	(383)			(187)
Changes in operating assets and liabilities:
Accounts receivable	(627)			(13,302)
Inventories	(9,582)			(16,579)
Prepaid expenses and other assets	(2,563)			(655)
Accounts payable and accrued liabilities	(14,150)			9,499
Income taxes	5,945			1,656
Net cash provided by operating activities	27,999			27,491

Investing activities:
Purchases of property, plant and equipment	(3,861)			(11,328)
Other	—			2
Net cash used in investing activities	(3,861)			(11,326)

Financing activities:
Payment of dividends	(11,376)			(11,595)
Proceeds from exercise of stock options	349			151
Payments for employee taxes withheld from stock-based awards	(1,504)			(3,339)
Purchase of treasury stock	(12,070)			(18,924)
Proceeds from borrowing on credit facilities	36,000			56,200
Repayment of borrowing on credit facilities	(32,000)			(27,200)
Other	66			115
Net cash used in financing activities	(20,535)			(4,592)

Effect of exchange rate changes on cash	(3,201)			(1,355)

Net increase in cash and cash equivalents	402			10,218
Cash and cash equivalents, beginning of period	114,069			147,335

Cash and cash equivalents, end of period	$	114,471			$	157,553

BRADY CORPORATION AND SUBSIDIARIES

(Unaudited; Dollars in thousands)


	Three months ended October 31,
2022		2021
NET SALES
IDS	$	256,356		$	248,617
WPS	66,213		72,858
Total	$	322,569		$	321,475

SALES INFORMATION
IDS
Organic	8.6	%	13.2	%
Currency	(5.5)	%	0.6	%
Acquisition	—	%	11.6	%
Total	3.1	%	25.4	%
WPS
Organic	1.2	%	(8.6)	%
Currency	(10.3)	%	0.8	%
Total	(9.1)	%	(7.8)	%
Total Company
Organic	6.9	%	7.0	%
Currency	(6.6)	%	0.7	%
Acquisition	—	%	8.3	%
Total	0.3	%	16.0	%

SEGMENT PROFIT
IDS	$	51,525		$	48,816
WPS	6,378		2,293
Total	$	57,903		$	51,109
SEGMENT PROFIT AS A PERCENT OF NET SALES
IDS	20.1	%	19.6	%
WPS	9.6	%	3.1	%
Total	18.0	%	15.9	%


	Three months ended October 31,
2022		2021
Total segment profit	$	57,903		$	51,109
Unallocated amounts:
Administrative costs	(6,517)		(6,774)
Investment and other (expense) income	(157)		543
Interest expense	(894)		(182)
Income before income taxes	$	50,335		$	44,696

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 reconciliation to the most closely related GAAP measure.

Income Before Income Taxes Excluding Certain Items:

Brady is presenting the non-GAAP measure, "Income Before Income Taxes 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 Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes to the non-GAAP measure of Income Before Income Taxes Excluding Certain Items:


	Three months ended October 31,
	2022		2021
Income before income taxes (GAAP measure)	$	50,335			$	44,696
Amortization expense	3,631			3,807
Income Before Income Taxes Excluding Certain Items (non-GAAP measure)	$	53,966			$	48,503

Income Tax Expense Excluding Certain Items:

Brady is presenting the non-GAAP measure, "Income Tax Expense 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 Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Income Tax Expense Excluding Certain Items:


	Three months ended October 31,
	2022		2021
Income tax expense (GAAP measure)	$	10,894			$	9,650
Amortization expense	865			900
Income Tax Expense Excluding Certain Items (non-GAAP measure)	$	11,759			$	10,550

Net Income Excluding Certain Items:

Brady is presenting the non-GAAP measure, "Net Income 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 Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Net Income Excluding Certain Items:


	Three months ended October 31,
	2022		2021
Net income (GAAP measure)	$	39,441			$	35,046
Amortization expense	2,766			2,907
Net Income Excluding Certain Items (non-GAAP measure)	$	42,207			$	37,953

Diluted EPS Excluding Certain Items:

Brady is presenting the non-GAAP measure, "Diluted EPS 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 Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Diluted EPS Excluding Certain Items (Note that certain amounts will not foot due to rounding):


	Three months ended October 31,
	2022		2021
Net income per Class A Nonvoting Common Share (GAAP measure)	$	0.79			$	0.67
Amortization expense	0.06			0.06
Diluted EPS Excluding Certain Items (non-GAAP measure)	$	0.84			$	0.72

Diluted EPS Excluding Certain Items Guidance:


	Fiscal 2023 Expectations
		Low		High
Earnings per Class A Nonvoting Common Share (GAAP measure)		$	3.13			$	3.43
Amortization expense		0.17			0.17
Diluted EPS Excluding Certain Items (non-GAAP measure)		$	3.30			$	3.60

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F’23 Q1 Financial Results Brady Corporation November 17, 2022

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Forward-Looking Statements 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,” “continue” 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: increased cost of raw materials, labor and freight as well as material shortages and supply chain disruptions; adverse impacts of the novel coronavirus (“COVID-19”) pandemic or other pandemics; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; Brady’s ability to identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks, and systems against security breaches; 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; 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; 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, 2022. 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. 2

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3 * Diluted EPS Excluding Certain Items is a non-GAAP measure. See appendix. Organic sales grew 6.9%, with organic growth in both segments. Foreign currency reduced sales by 6.6% Strong Organic Sales Growth GPM of 48.1% compared to 48.2% in Q1 of F’22. Gross margins continue to be impacted by inflation. Healthy Gross Profit Margins GAAP EPS of $0.79 was up 17.9% over Q1 of last year. Diluted EPS Excluding Certain Items* increased 16.7% to $0.84 in Q1 of F’23 compared to $0.72 in Q1 of F’22. Expanding Earnings per Share Workplace Safety segment profit was up 178% over Q1 of F’22. Identification Solutions segment profit was up 5.5% over Q1 of F’22. Strong Divisional Results Repurchased 279,513 shares for $12.1M in Q1 of F’23. Returned $11.4M to our shareholders in the form of dividends. In a net cash position of $15.5M at October 31, 2022. Returning Capital to our Shareholders Q1 F’23 Highlights SG&A expense of 27.9% of sales in Q1 of F’23 compared to 30.1% in the prior year. Driving Efficiencies in SG&A Expense

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Sales Overview 4 Q1 F’23 SALES: Total sales increased 0.3%. Organic sales increased 6.9%. • ID Solutions – Organic sales increased 8.6%. • Workplace Safety – Organic sales increased 1.2%. 6.6% decrease due to foreign currency translation. $287 $277 $266 $252 $277 $266 $296 $306 $321 $318 $339 $324 $323 $225 $250 $275 $300 $325 $350 Q1 F'20 (0.4%) Q2 F'20 (1.2%) Q3 F'20 (6.0%) Q4 F'20 (13.7%) Q1 F'21 (4.9%) Q2 F'21 (6.3%) Q3 F'21 6.5% Q4 F'21 12.6% Q1 F'22 7.0% Q2 F'22 13.1% Q3 F'22 9.0% Q4 F'22 9.0% Q1 F'23 6.9% Organic Growth (Decline) SALES (millions of USD) Q1 F’23 SALES COMMENTARY: ID Solutions experienced strong organic sales growth in all regions. Workplace Safety realized organic sales growth for the fourth consecutive quarter. Foreign currency translation is an increasing headwind due to the strengthening of the U.S. dollar against other major currencies.

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Gross Profit Margin 5 $141 $139 $130 $119 $135 $130 $149 $148 $155 $149 $164 $163 $155 49.3% 50.3% 48.7% 47.1% 48.9% 48.7% 50.4% 48.2% 48.2% 47.0% 48.4% 50.4% 48.1% 38% 40% 42% 44% 46% 48% 50% $100 $125 $150 $175 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 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 GROSS PROFIT & GPM% (millions of USD) Q1 F’23 – GROSS PROFIT MARGIN: Gross profit margin of 48.1% compared to 48.2% in Q1 of F’22. Price increases, efficiency gains, and automation are not fully offsetting the negative impacts of inflation.

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SG&A Expense 6 Q1 F’23 – SG&A EXPENSE: SG&A expense was 27.9% of sales compared to 30.1% of sales in the same quarter last year. We continue to focus on driving sustainable efficiency gains and increasing sales to continue reducing SG&A expense as a percent of sales. $90 $87 $83 $76 $83 $82 $91 $94 $97 $93 $96 $95 $90 31.2% 31.6% 31.3% 30.2% 30.0% 30.9% 30.7% 30.6% 30.1% 29.1% 28.4% 29.2% 27.9% 10% 15% 20% 25% 30% 35% $60 $70 $80 $90 $100 $110 $120 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 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 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD)

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R&D Expense 7 Q1 F’23 – R&D EXPENSE: We have a solid new product pipeline of high-quality materials and products to help make our customers more efficient. Sequentially, R&D expense was down due to the timing of project spend as well as a reduction in incentive-based compensation. We are focused on ensuring that our R&D spend is both efficient and effective and we remain committed to investing in new product development. $11.0 $10.5 $9.8 $9.4 $10.2 $9.9 $11.3 $13.2 $13.9 $14.0 $14.9 $15.8 $13.9 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.8% 4.3% 4.3% 4.4% 4.4% 4.9% 4.3% 1.5% 2.5% 3.5% 4.5% $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 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 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD)

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Income Before Income Taxes 8 Q1 F’23 – INCOME BEFORE INCOME TAXES: GAAP Income before income taxes was up 12.6% to $50.3M in Q1 of F’23 compared to $44.7M in Q1 of F’22. Income Before Income Taxes Excluding Certain Items*, which only removes amortization expense from each period presented, increased 11.3% to $54.0M in Q1 of F’23 compared to $48.5M in Q1 of F’22. INCOME BEFORE INCOME TAXES (GAAP) (millions of USD) $41.6 $42.4 $22.2 $34.9 $42.2 $39.4 $47.8 $41.6 $44.7 $42.0 $51.3 $54.0 $50.3 $10 $20 $30 $40 $50 $60 Q1 F'20 4.2% Q2 F'20 15.4% Q3 F'20 (45.9%) Q4 F'20 (26.0%) Q1 F'21 1.6% Q2 F'21 (7.0%) Q3 F'21 115.7% Q4 F'21 19.4% Q1 F'22 5.8% Q2 F'22 6.7% Q3 F'22 7.3% Q4 F'22 29.7% Q1 F'23 12.6% Year-on-Year Growth (Decline) * Income Before Income Taxes Excluding Certain Items is a non-GAAP measure. See appendix.

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Net Income & Diluted EPS 9 Q1 F’23 – NET INCOME & DILUTED EPS: GAAP Net Income was $39.4M in Q1 of F’23 compared to $35.0M in Q1 of F’22 (an increase of 12.5%). • Net Income Excluding Certain Items* was $42.2M in Q1 of F’23 compared to $38.0M in Q1 of F’22 (an increase of 11.2%). GAAP Diluted EPS was $0.79 in Q1 of F’23 compared to $0.67 in Q1 of F’22 (an increase of 17.9%). • Diluted EPS Excluding Certain Items* was $0.84 in Q1 of F’23 compared to $0.72 in Q1 of F’22 (an increase of 16.7%). * Net Income Excluding Certain Items and Diluted EPS Excluding Certain Items are non-GAAP measures. See appendix. $37.5 $33.6 $13.6 $27.7 $33.5 $30.9 $37.3 $28.0 $35.0 $33.8 $40.1 $41.1 $39.4 $0 $10 $20 $30 $40 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 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 NET INCOME (GAAP) (millions of USD) $0.70 $0.62 $0.26 $0.53 $0.64 $0.59 $0.71 $0.53 $0.67 $0.65 $0.78 $0.81 $0.79 $0.00 $0.20 $0.40 $0.60 $0.80 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 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 DILUTED EPS (GAAP)

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Cash Generation 10 CASH FLOW FROM OPERATING ACTIVITIES (millions of USD) $38.8 $14.3 $42.8 $45.1 $62.8 $36.1 $56.0 $50.8 $27.5 ($3.2) $40.9 $53.2 $28.0 -$5 $15 $35 $55 $75 Q1 F'20 104% Q2 F'20 43% Q3 F'20 313% Q4 F'20 163% Q1 F'21 188% Q2 F'21 117% Q3 F'21 150% Q4 F'21 181% Q1 F'22 78% Q2 F'22 (9%) Q3 F'22 102% Q4 F'22 130% Q1 F'23 71%% of Net Income CASH FLOWS IN Q1 OF F’23: Overview: Cash flow from operating activities was $28.0M in Q1 of F’23 compared to $27.5M in Q1 of F’22. Free cash flow* was $24.1M in Q1 of F’23 compared to $16.2M in Q1 of F’22. Cash generation was impacted by an acceleration of the timing of annual incentive-based compensation payments from Q2 last year to Q1 in the current year. Returning Funds to our Shareholders: In Q1 of F’23, we returned a total of $23.4M to our shareholders in the form of dividends and buybacks. Dividends – Increased our annual dividends for the 37th consecutive year. Buybacks – Repurchased 279,513 shares in Q1 of F’23 for $12.1M. * Free cash flow is calculated as Net Cash Provided by Operating Activities less Capital Expenditures. (millions of USD) 3 Mos. Ended Oct. 31, 2022 3 Mos. Ended Oct. 31, 2021 Cash Balance - Beginning of Period 114.1$ 147.3$ Cash Flow from Operating Activities 28.0 27.5 Capital Expenditures (3.9) (11.3) Dividends (11.4) (11.6) Share Repurchases (12.1) (18.9) Debt Borrowings 4.0 29.0 Effect of Exchange Rates on Cash (3.2) (1.4) Other (1.0) (3.0) Cash Balance - End of Period 114.5$ 157.6$

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Net Cash 11 STRONG BALANCE SHEET: October 31, 2022 cash = $114.5M. October 31, 2022 debt = $99.0M. Brady is in a net cash position of $15.5M. Balance sheet provides flexibility for future organic and inorganic investments. $245 $240 $190 $218 $256 $278 $322 $109 $91 $64 $26 $19 $15 $0 $50 $100 $150 $200 $250 $300 Q1 F'20 Q2 F'20 Q3 F'20 Q4 F'20 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 NET CASH (millions of USD)

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F’23 Diluted EPS Guidance Diluted EPS Excluding Certain Items* $3.30 to $3.60 (+4.8% to +14.3% vs. F’22) GAAP Diluted EPS $3.13 to $3.43 (+7.9% to +18.3% vs. F’22) Guidance Assumptions: Organic sales growth in the mid-to-high single digit percentages. Negative foreign currency impact of approximately 5% on net sales. The only difference between GAAP Diluted EPS and Diluted EPS Excluding Certain Items* F’23 guidance is the impact of amortization expense of $0.17 per share. Full-year income tax rate of approximately 20%. Depreciation and amortization expense of $32M to $34M. Capital expenditures of approximately $32M. Foreign currency exchange rates as of October 31, 2022. 12 * Diluted EPS Excluding Certain Items is a non-GAAP measure. See appendix.

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Identification Solutions 13 • Revenues increased 3.1%: • Organic growth = + 8.6%. • Fx reduction = (5.5%). • Organic sales growth remains strong in all regions. The strongest organic sales growth was in Europe. • We are investing in geographic expansion, innovation and sales-generating resources. • Increased segment profit as a percent of sales versus the prior year was partially driven by reduced incentive-based compensation as well as benefits from pricing actions. Q1 F’23 SUMMARY:Q1 F’23 vs. Q1 F’22 (millions of USD) $198 $194 $218 $231 $249 $245 $264 $253 $256 20% 20% 22% 18% 20% 18% 20% 20% 20% 0% 5% 10% 15% 20% $150 $175 $200 $225 $250 $275 $300 $325 Q1 F'21 (8.4%) Q2 F'21 (6.9%) Q3 F'21 9.8% Q4 F'21 24.5% Q1 F'22 13.2% Q2 F'22 16.0% Q3 F'22 11.8% Q4 F'22 10.8% Q1 F'23 8.6% SALES & SEGMENT PROFIT % (millions of USD) • Organic sales growth in the mid-to-high single-digit percentages in F’23. • Continued profit growth, partially offset by increasing foreign currency headwinds as well as the negative impact of inflation on gross profit margins. OUTLOOK: Q1 F’23 Q1 F’22 Change Sales $ 256.4 $ 248.6 + 3.1% Segment Profit 51.5 48.8 + 5.5% Segment Profit % 20.1% 19.6% + 50 bps Organic Growth

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Workplace Safety 14 • Revenues declined 9.1%: • Organic growth = + 1.2%. • Fx reduction = (10.3%). • Segment profit increased as a result of our actions to: • Streamline our product offering. • Simplify and reduce our cost structure. • Improve our price competitiveness. • Segment profit was negatively impacted by leadership transition expenses of $0.9M. Excluding these charges, segment profit as a % of sales would have been 11.0% in Q1 of F’23. Q1 F’23 SUMMARY:Q1 F’23 vs. Q1 F’22 (millions of USD) • Organic sales growth in the low single-digit percentages in F’23. • Significant foreign currency headwinds. • Continued profit improvements, partially offset by inflation and foreign currency. OUTLOOK: Q1 F’23 Q1 F’22 Change Sales $ 66.2 $ 72.9 (9.1%) Segment Profit 6.4 2.3 + 178.2% Segment Profit % 9.6% 3.1% +650 bps $79 $72 $77 $75 $73 $73 $74 $71 $66 10% 5% 7% 8% 3% 6% 10% 13% 10% 0% 2% 4% 6% 8% 10% 12% 14% $50 $75 $100 $125 Q1 F'21 5.5% Q2 F'21 (4.8%) Q3 F'21 (2.2%) Q4 F'21 (12.7%) Q1 F'22 (8.6%) Q2 F'22 5.2% Q3 F'22 0.9% Q4 F'22 3.3% Q1 F'23 1.2% SALES & SEGMENT PROFIT % (millions of USD) Organic Growth

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

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Appendix GAAP to Non-GAAP Reconciliations

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Non-GAAP Reconciliations 17 2022 2021 50,335$ 44,696$ Amortization expense 3,631 3,807 53,966$ 48,503$ 2022 2021 10,894$ 9,650$ Amortization expense 865 900 11,759$ 10,550$ Income Tax Expense Excluding Certain Items (non-GAAP measure) Income Before Income Taxes Excluding Certain Items (non-GAAP measure) Income tax expense (GAAP measure) Income Tax Expense Excluding Certain Items: Brady is presenting the non-GAAP measure, "Income Tax Expense 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 Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Income Tax Expense Excluding Certain Items: Three months ended October 31, GAAP to NON-GAAP MEASURES Income Before Income Taxes Excluding Certain Items: (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 reconciliation to the most closely related GAAP measure. Brady is presenting the non-GAAP measure, "Income Before Income Taxes 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 Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes to the non-GAAP measure of Income Before Income Taxes Excluding Certain Items: Three months ended October 31, Income before income taxes (GAAP measure)

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Non-GAAP Reconciliations 18 2022 2021 39,441$ 35,046$ Amortization expense 2,766 2,907 42,207$ 37,953$ 2022 2021 $ 0.79 $ 0.67 Amortization expense 0.06 0.06 0.84$ 0.72$ Diluted EPS Excluding Certain Items Guidance: Low High Earnings per diluted Class A Common Share (GAAP measure) $ 3.13 $ 3.43 Amortization expense 0.17 0.17 Diluted EPS Excluding Certain Items (non-GAAP measure) 3.30$ 3.60$ Fiscal 2023 Expectations Diluted EPS Excluding Certain Items (non-GAAP measure) Net Income Excluding Certain Items (non-GAAP measure) Net income (GAAP measure) Diluted EPS Excluding Certain Items: Brady is presenting the non-GAAP measure, "Diluted EPS 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 Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Diluted EPS Excluding Certain Items (Note that certain amounts will not foot due to rounding): Three months ended October 31, Net income per Class A Nonvoting Common Share (GAAP measure) Three months ended October 31, 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 reconciliation to the most closely related GAAP measure. Brady is presenting the non-GAAP measure, "Net Income 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 Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Net Income Excluding Certain Items: Net Income Excluding Certain Items:


EXHIBIT NUMBER	DESCRIPTION
99.1	Press Release of Brady Corporation, dated November 17, 2022, relating to first quarter fiscal 2023 financial results.
99.2	Informational slides provided by Brady Corporation, dated November 17, 2022, relating to first quarter fiscal 2023 financial results.

104	Cover Page Interactive Data File (embedded within Inline XBRL document).