July 2008

Brady 2008 Analyst DayAmericas Presentation

1

Presentation Topics

2

Americas Region SummaryBrady AmericasDirect Marketing & People ID

Global Product MarketsWire IdentificationHigh Performance ID

Direct Marketing Brady Americas People ID Global Account Management

Americas Business Structure

3

DirectMarketing& People ID

Direct Marketing Direct Marketing : Seton (US, Canada, Brazil), DAWG, EMEDBusinesses: Regulatory Publishing: Personnel Concepts, Clement

BradyAmericas

People ID Brady People ID (CIPI, JAM, Promovision)Businesses: Varitronics, Stopware, Identicard and Identicam

Brady Americas Brady (US, Canada, Mexico, Brazil)Businesses: Electromark, Tiscor and SPC

Americas Presence – F’03 to F’08 TTM

MRO: OEM:

Sales($ in millions)

Segment Profit

0

100

200

300

400

500

600

700

2003 2004 2005 2006 2007 2008TTM

342418

499

610

299

050

100150

2003 2004 2005 2006 2007 2008TTM

6098

123142

42

4

Americas:Sites: 15 24Employees: 1,900 3,200

($ in millions – pre-tax)

667

155

Americas Channels

5

Direct Marketing

Biz to Biz onlyContinually reacquireSmaller average

order valueOften one-time

needsMRO markets

• Industrial, Safety, Electrical, Specialty• Resellers• MRO & OEM markets

Distribution

• Primarily large customers of custom product• Internet business in non-Brady Brand businesses• Mostly OEM markets

DirectDirect Marketing: sales made to end customers solicited mainly through mail, telesales or the internet. Primarily in Seton, EMED and Personnel Concepts.

Distribution Sales: Brady sales representatives work in conjunction with distributors or resellers to close business. Primarily in the Brady brand businesses & People ID.

Direct to Customer: sales to the end customer but not solicited through a direct mail model. Primarily the Brady Brand businesses.

Americas Business Mix

MRO OEM• Products- High Performance labels & systems- Wire ID labels & systems- Diecut parts• Higher growth prospects (GDP+)• Market growth drivers- Performance (highly specified)- Traceability- Operational efficiency• Highly competitive• Distribution & Direct sales channels

•Products- Safety & Facility ID - People ID- Wire ID & printers- Laboratory labels & systems-Compliance & safety posters

•Broad end use Markets -Plant & facility maintenance-Contractors-Utility-Government-Healthcare-Education-Research labs-Small businesses of all types

•Growth roughly nominal GDP•Market growth drivers-Regulatory compliance,

safety-Traceability, security & productivity•Small orders, consumable in nature•Distribution & Direct Mktg

6

Markets

• Electrical & Industrial OEM’s• MRO• Utility• Laboratory• Medical• Aerospace/Defense• Mass Transit

Products

• Wire ID & Printers• High performance labels & printers• Facility ID & printers• Safety products• Sorbents• Diecut parts

Growth

• Brady (USA, Canada, Mexico, Brazil)• SPC• Electromark• Tiscor

Businesses

Brady Americas Summary

Organic• New Products• New space expansion• Channel programs• National Acct programs• Improving loyalty

Acquisitions• Asterisco• Scafftag

7

Markets

• Manufacturing• Industrial MRO• Industrial Safety• Utility• Contractors• Small businesses of all types

Products

• Facility & safety ID• Asset ID• Compliance posters• Safety & training posters• Sorbents

Growth

• Seton (US, Canada, Brazil)• EMED• DAWG• Clement• Personnel Concepts

Businesses

Direct Marketing Summary

Organic• Migration to multi-channel approach• Improved circulation programs• Pricing strategy• Use of Manila telesalesAcquisitions• DAWG• Diversify spaces

8

Markets

• Government• Corporations• Education• Healthcare• Special events

Products

• Employee ID cards• Lanyards & badge holders• Access control software & hardware• Visitor management software & hardware

Growth

• Brady People ID(CIPI and JAM)

• Identicard/Identicam• Stopware• Varitronics

Businesses

People ID Summary

Organic• New Products –consumables and software• Sales productivity initiatives• Improved service• Ebiz• New content products

Acquisitions• Not a focus right now

9

Americas Locations

US: Milwaukee (4), Brooklyn Park, MN, Dallas, Wolcott, NY, Somerset, NJ, San Diego, Ontario, CA, Buffalo, Branford, CT, Terryville, CT, San Jose, Boston, Lancaster, PA, Concord, PA, Memphis,

Canada: Toronto

Mexico: Tijuana, Reynosa, Queretaro

Brazil: Sao Paulo, Manaus

24 Total locations19 with Manufacturing3 software businesses

10

Brooklyn Park, MN: engineer and mfg. printers and software for Brady globally

11

Strategy: vertical integration of printers, software and consumables

Currently expanding low cost printer capabilities in our Penang, Malaysia plant

Glendale, WI: coating of tape materials for Brady globally and external customers

12

Strategy: vertical integration of material R&D, coating and converting resulting in proprietary consumables

Milwaukee, WI: mfg short run wire markers, signs & labels; central warehouse for all stock products

13

Strategy: same day, single shipment to distributors of products made in different Brady plants

Tijuana, MX: longer run stock labels, wire markers and signs

14

Strategy: low cost production of longer run stock products,local production for Mexican market

Markets

• All OEM’s• Laboratory• Medical• Automotive

Competition

• Fragmented local & regional converters• 3M• Tyco• Zebra• Worldmark

Growth

• Bar code labels• Computer printable labels• Brand protection labels• RFID labels & tags• Handheld & benchtop printers & supplies• Nameplates• Software

Products

High Performance Identification

Organic• New products• Laboratory ID market• New markets• Expanded capabilities

Acquisitions• Asterisco

15

High Performance Identification

Market Definition: All film labels & nameplates used to warn, identify, instruct, inform, trace, protect, & decorate.

Major Segments: On-demand labels, flexo & prime labels, nameplates

Growth: GDP+

Market Dynamics that lead to our position: - Development of on-demand printing technologies- Use of barcoding for traceability for warranty and repair- Drive to lower costs, reduce inventory and suppliers

Growth Drivers:- Need for traceability, warranty tracking- POS branding driving use of film materials vs. paper- Interactive, value add media development

Historical successes:- Sales of “on demand” computer printable labels & systems - Market leadership in PC board labeling - Growth in Lab market for specimen ID

Large & fragmented market where Brady has primarily excelled with “on-demand” labels sold with printing systems. Opportunities for growth exist selected niche markets, application & geographies.16

Flexo Labels

On-Demand Labels

Prime Labels

Nameplates

Flexographic labels: printed via flexography, mostly customsNameplates: product ID, custom printed on PolycarbonatePrime labels: product ID on consumer/retail productsOn-demand: variably printable on site by customers

High Performance Identification Markets

17

“On demand” labels and systems is an area we do well in and can continue to excel.Our overall profitability is better than the market as a whole due to niche approach & pricing philosophy.The overall film label market is huge with many acquisition options but most do not meet our standards for profitability and differentiation.Initial research in adjacencies has identified numerous new niche markets & applications we are exploring Target acquisitions will be in specific geographies, markets or technologies where we can excel & generate higher margins.

High Performance Identification Summary

18

Wire Identification

Market Definition: Customers who design, install, identify, manage and/or document electrical power systems or voice/data networks

Major Segments: Electrical: MRO, contractors & OEM’s, Datacomm installers, Aerospace/Defense/Mass Transit (ADM)

Growth: GDP

Market Dynamics that lead to our position: - Complicated wire designations that lead to the requirement for on-demand printing

Growth Drivers- Expansion of the datacomm market- More sophisticated wiring in commercial, hospitality & residential buildings- ADM market

Historical Successes- Lead the market conversion to printing systems with consumables.- Strong market position in electrical OEM & MRO customers- Earned loyalty with the best channel partners

Excellent market position in a profitable niche for high performance materials where printing systems also play a critical role in the customers decision20

Wire Identification Summary

Wire identification and systems is an area we do well in and have excellent brand recognition.

Continue aggressive new product development

Continue with wire ID acquisitions in Europe & Asia

Move into adjacent products to expand the overall market we play in and increase importance to customers

21