Brady's Business Segments

Brady Corporation was incorporated under the laws of the state of Wisconsin in 1914. The Company’s corporate headquarters are located at 6555 West Good Hope Road, Milwaukee, Wisconsin 53223, and the telephone number is (414) 358-6600.

Brady Corporation is a global manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The ability to provide customers with a broad range of proprietary, customized and diverse products for use in various applications, along with a commitment to quality and service, a global footprint, and multiple sales channels, have made Brady a leader in many of its markets.
The Company’s primary objective is to build upon its market position and increase shareholder value by improving in the following key competencies:

Operational excellence — Continuous productivity improvement, business simplification and process transformation.

Customer service — Focus on the customer and understanding customer needs.

Innovation advantage — Technologically advanced, internally developed products drive growth and sustain gross profit margins.

Global leadership position in niche markets.

Digital capabilities.

Compliance expertise.

Over the last two years, we made significant portfolio and management decisions designed to better position the Company for growth in the future. These changes were a meaningful shift from the more volatile and less profitable consumer electronics Die-Cut business, which was partially divested in fiscal 2014 and fully divested in the first quarter of fiscal 2015, to a focus on organic growth opportunities within our Identification Solutions (“ID Solutions" or "IDS”) and Workplace Safety ("WPS") segments. In our IDS business, our strategy for growth includes expanding the business in high opportunity markets and investing in research and development ("R&D") activities to develop and launch innovative, high-value products more efficiently. In our WPS business, our strategy to return to growth includes a focus on workplace safety critical industries, expansion of our product offerings, further developed pricing capabilities, and increased investment in digital.

The Company is organized and managed on a global basis within two reportable segments: Identification Solutions and Workplace Safety.
The IDS segment includes high-performance and innovative identification and healthcare products that are manufactured under multiple brands, including the Brady brand, and are primarily sold through distribution to a broad range of maintenance, repair, and operations ("MRO") and original equipment manufacturing ("OEM") customers and through other channels, including direct sales, catalog marketing, and digital.

The WPS segment includes workplace safety and compliance products, which are sold under multiple brand names through catalog and digital to a broad range of MRO customers. Approximately half of the WPS business is derived from internally manufactured product and half is from externally sourced products.

Brady Corporation Overview of Segments, Products, and Services

Brady Corporation operates through various segments, primarily focusing on providing solutions related to identification and workplace safety. Below is a detailed overview of the segments, products, services offered, and their international operations.

ID Solutions Segment

The ID Solutions segment is designed to facilitate effective identification and safety protocols across various industries. The key product categories under this segment include:

1. Facility Identification:
- Products: Safety signs, pipe markers, labeling systems, spill control products, lockout/tagout devices.
- Services: Software and services related to auditing, procedure writing, and training.

2. Product Identification:
- Products: Materials and printing systems for product identification; brand protection labeling; work-in-process labeling; finished product identification.

3. Wire Identification:
- Products: Hand-held printers, wire markers, sleeves, and tags specifically designed for the identification of electrical and other types of wiring.

4. People Identification:
- Products: Self-expiring name tags, badges, lanyards, and access control software, which are critical for managing personnel access in various environments.

5. Patient Identification:
- Products: Wristbands and labels utilized in healthcare settings for tracking patients and enhancing safety.

6. Custom Wristbands:
- Products: Custom wristbands tailored for the leisure and entertainment sectors, such as those found in theme parks, concerts, and festivals.

Brady Corporation markets approximately 65% of its ID Solutions products under the Brady brand. In the United States, different product lines are marketed under various brands:
- Electromark: Utility industry identification products.
- SPC: Spill-control products.
- B.I.G. Identicard/Identicam, PromoVision, Brady People ID: Security and identification badges and systems.
- Modernotecnica: Wire identification products marketed in Italy.
- Scafftag: Lockout/tagout products offered in the UK.
- Stickolor: Custom labels and nameplates in Brazil.
- PDC Innovative: Healthcare identification and patient safety products, as well as custom wristbands in the U.S. and Europe.

The ID Solutions segment prides itself on delivering high-quality products coupled with rapid response times and superior service, catering to diverse customer needs. The sales strategy leverages multiple channels, including direct sales, distributor networks, catalog marketing, and e-commerce. This segment serves a wide array of industries such as industrial manufacturing, healthcare, aerospace, automotive, and many others, with products developed via rigorous internal engineering and design processes.

Workplace Safety Segment

The Workplace Safety segment focuses on products that promote safety and compliance in various work environments. The primary product categories include:

1. Safety and Compliance Products:
- Safety signs, tags, and labels to ensure compliance with regulatory requirements.

2. Informational and Architectural Signage:
- Signage necessary for guiding individuals within facilities.

3. Asset Tracking Labels:
- Labels designed to monitor and track physical assets efficiently.

4. First Aid Products:
- Supplies and kits essential for workplace injury management.

5. Warehouse and Office Equipment:
- Various equipment to enhance operational safety and efficiency.

6. Labor Law Compliance Posters:
- Essential information and regulatory compliance postings for employee awareness.

The Workplace Safety segment encompasses several brands to ensure a broad market reach:
- Seton, Emedco, Signals, Safety Signs Service, Pervaco: Safety and facility identification.
- Accidental Health and Safety, Trafalgar, Securimed: First aid supplies.
- Runelandhs, Welco: Warehouse supplies.
- Carroll: Wire identification products.
- Personnel Concepts: Labor law compliance posters.

This segment primarily caters to businesses across various sectors, including manufacturing, construction, government, and education. The transition of the industry towards digital platforms for marketing and sales has prompted Brady to enhance its e-commerce capabilities and adopt dynamic pricing strategies to maintain competitiveness in an increasingly transparent market.

International Operations

Brady Corporation operates on a global scale, with products offered in various international markets under region-specific brands. This multinational presence allows the company to cater to a diverse client base, adapt to local regulations, and meet specific industry needs. The products sold internationally often mirror those offered domestically, but with adaptations based on regional demands and compliance standards. This global reach is vital for Bradys competitive edge in the identification and workplace safety sectors, ensuring they can serve multinational clients effectively.

Overall, Brady Corporation continues to innovate and enhance its offerings in the ID Solutions and Workplace Safety segments, adapting to market trends and customer needs while maintaining a focus on quality and service excellence.