Brady : F21 Q4 Conference Call Presentation

Brady Corporation

F'21 Q4 Financial Results

September 2, 2021

Forward-Looking Statements	2

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," "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: 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 develop technologically advanced products that meet customer demands; Brady's ability to properly identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; raw material and other cost increases including raw material shortages; 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, 2021.

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.

Q4 F'21 Financial Summary

• Sales grew 21.6% to $306.1M in Q4 of F'21 compared with $251.7M in Q4 of

F'20.

- Organic sales grew 12.6%, acquisitions increased sales by 4.7% and foreign currency translation increased sales 4.3%.

• Gross profit margin of 48.2% in Q4 of F'21 compared with 47.1% in Q4 of F'20.

• SG&A expense of $93.7M (30.6% of sales) in Q4 of F'21 compared with $75.9M (30.2% of sales) in Q4 of F'20.

• GAAP Income before income taxes and losses of unconsolidated affiliate increased 19.4% to $41.6M in Q4 of F'21 compared with $34.9M in Q4 of F'20.

- Income Before Income Taxes Excluding Certain Items* in the fourth quarter of fiscal 2021 increased 30.1% to $45.4M compared with $34.9M in Q4 of F'20.

• GAAP Diluted EPS in the fourth quarter of fiscal 2021 was consistent with the fourth quarter of the prior year at $0.53.

- Diluted EPS Excluding Certain Items*, increased 32.1% to $0.70 in the fourth quarter of fiscal 2021 compared to $0.53 in the same quarter of the prior year.

* Income Before Income Taxes Excluding Certain Items and Diluted EPS Excluding Certain Items are non-GAAPmeasures. See appendix.

3

Sales Overview	4

SALES										(millions of USD)
													$306
$300		$293		$290	$295	$287						$296
			$282
						$277			$277
$275
							$266			$266
$250									$252
$225
$200	Q1 F'19	Q2 F'19	Q3 F'19	Q4 F'19	Q1 F'20	Q2 F'20	Q3 F'20	Q4 F'20	Q1 F'21	Q2 F'21	Q3 F'21	Q4 F'21
Organic Sales	4.7%	2.3%	2.4%	1.7%	(0.4%)	(1.2%)	(6.0%)	(13.7%)	(4.9%)	(6.3%)	6.5%	12.6%
Growth
(Decline)

Q4 F'21 SALES:

• Total sales increased 21.6%.
• Organic sales increased 12.6%:
• • ID Solutions - Organic sales increased 24.5%.
  • Workplace Safety - Organic sales declined 12.7%.
• 4.7% increase due to acquisitions.
• 4.3% increase due to foreign currency translation.

Q4 F'21 SALES COMMENTARY:

• ID Solutions - Double-digit organic sales growth rates in all regions combined with 6.9% growth from the acquisitions completed in Q4 of F'21.
• Workplace Safety - Organic sales declined primarily due to strong prior year sales of Covid-related products. Q4 F'21 sales were above the pre-pandemic levels experienced in Q4 of F'19.

Gross Profit Margin	5

GROSS PROFIT & GPM%

(millions of USD)

	50.0%		50.3%			50.3%					50.4%
		49.6%
	49.5%		49.3%							50%
							48.9%
							48.7%		48.7%		48.2%
$150	$147		$146	$147				47.1%			$149	$148
	$141
		$140			$139
									$135			45%
							$130			$130
$125								$119
$100												40%
	Q1 F'19	Q2 F'19	Q3 F'19	Q4 F'19	Q1 F'20	Q2 F'20	Q3 F'20	Q4 F'20	Q1 F'21	Q2 F'21	Q3 F'21	Q4 F'21

Q4 F'21 - GROSS PROFIT MARGIN:

• Gross profit margin of 48.2% compared to 47.1% in Q4 of F'20.
• The non-recurring impact of purchase accounting charges related to our recent acquisitions reduced our gross profit margin by approximately 20 basis points.
• Efficiency gains, automation and selected price increases partially offset the negative impacts caused by input-cost inflation, product mix, and reduced sales volumes in our Workplace Safety business.