EX-13.1 8 c65273ex13-1.txt ANNUAL REPORT TO SHAREHOLDERS WE'VE TAKEN A LESSON FROM BAMBOO, ONE OF THE WORLD'S MOST ENDURING AND VERSATILE MATERIALS. BRADY CORPORATION 2001 Annual Report [BRADY LOGO] ABOUT BRADY CORPORATION Brady Corporation is a leading manufacturer and marketer of complete identification solutions which improve productivity, performance, safety and security. Its products include high-performance labels, signs, software, printers, specialty die-cut materials and data-collection systems for markets including electronics, telecommunication, electrical, transportation, pulp and paper, chemical, healthcare, education and government. Founded in 1914 and headquartered in Milwaukee, Wisconsin, Brady has about 3,000 employees in operations in 20 countries. Through distributors and other sales channels, Brady serves over 300,000 companies in more than 100 countries. Brady stock is traded on the New York Stock Exchange under the symbol BRC. For more information about Brady, please check out www.bradycorp.com on the Internet. FINANCIAL HIGHLIGHTS
Percent (Dollars in Thousands, Increase Except Per Share Amounts) JULY 31, 2001 July 31, 2000 (Decrease) ----------------------------------------------------------------------------------------------- Net sales $545,944 $550,664 (0.9) Income before income taxes $44,790 $76,131 (41.2) Pre-tax profit margin 8.2% 13.8% Net income $27,546 $47,201 (41.6) After-tax profit margin 5.0% 8.6% Return on average stockholders' investment 9.3% 17.1% Net income per Common Share (diluted) Class A Nonvoting $1.18 $2.05 (42.4) Class B Voting $1.15 $2.02 (43.1) Net income excluding nonrecurring items $33,425* $45,704** (26.9) Net income per Common Share excluding nonrecurring items (diluted) Class A Nonvoting $1.44 $1.98 (27.3) Class B Voting $1.41 $1.95 (27.7) Working capital $123,830 $116,084 6.7 Stockholders' investment $302,579 $291,224 3.9 Research and development $20,329 $20,555 (1.1) Capital expenditures $20,770 $22,624 (8.2) Depreciation and amortization $22,646 $17,833 27.0 KEY DATA Dividend yield 2.1% 2.2% Trailing P/E ratio, excluding non-recurring items 23.9 15.1 Current ratio 2.7 2.3 Book value/share $13.20 $12.81 Weighted average shares outstanding (diluted) 23,107,229 22,933,199
* In fiscal 2001, Brady had a one-time $5.9 million after-tax charge for a restructuring program. ** In fiscal 2000, Brady had a one-time $1.5 million after-tax gain from the sale of certain securities. NET SALES in millions [BAR GRAPH]
96 97 98 99 00 01 ------ ------ ------ ------ ------ ------ 366 434 463 479 551 546
NET INCOME in millions [BAR GRAPH]
96 97 98 99 00 01 ------ ------ ------ ------ ------ ------ 28 32 33* 39* 46* 33*
* excluding non-recurring items STOCKHOLDERS' INVESTMENT in millions [BAR GRAPH]
96 97 98 99 00 01 ------ ------ ------ ------ ------ ------ 189 207 233 261 291 302
BRADY CORPORATION 2 DEAR FELLOW SHAREHOLDERS "LET ME TELL YOU A STORY" Earlier in my career, I had occasion to visit an important customer in Kyoto at the beginning of the Japanese economic crisis. This customer's father had worked very hard to build a successful family business from scratch. Over the years, they developed a strong and loyal relationship with the company I was working for at the time. At this particular meeting, I was surprised when the customer handed me an order for an extremely expensive piece of equipment. "Given the difficult economic conditions in your country, are you sure you want to make this investment now?" I asked. He pointed to a large bamboo plant in his office and explained, "It's during the times of slower growth that the bamboo plant builds the strong rings that serve as the foundation for its next growth spurt." I've never forgotten that meeting, and often think of it in executive planning sessions. It seems particularly appropriate in these times of economic uncertainty. [PHOTO] KATHERINE M. HUDSON President and Chief Executive Officer By taking a lesson from the bamboo plant, Brady is continuing to invest and build our platforms for faster growth so that we may be better prepared when this manufacturing slow down moves into a recovery. 2001 ANNUAL REPORT 3 LETTER TO SHAREHOLDERS FINANCIAL RESULTS Fiscal 2001 was demanding, difficult and disappointing. We faced weak economies, a strong U.S. dollar, and business contraction in many markets. In fact, U.S. industrial production in 2001 fell to levels not seen since the 1991 recession, and U.S. factories operated at their slowest pace in more than 17 years. For Brady, that meant a swing from 15-percent sales growth in the first quarter to a 15-percent decline in the fourth quarter. Our sales for the year were $545.9 million, down 0.9 percent from fiscal 2000's record $550.7 million in sales. In local currencies, sales rose 3.3 percent to $568.8 million. As telecommunications, electronics and other Brady markets continued to struggle with double-digit declines throughout the year, we focused on creative and strategic cost-control initiatives to weather the storm. We aggressively took steps to reduce spending, including instituting a summer hours program for employees aimed at trimming our expenses while retaining our workforce. Unfortunately our efforts could not keep up with the dramatic business decline, and it was necessary to take additional steps. To better align our operations with market conditions, we undertook a restructuring in the fourth quarter. It included consolidating manufacturing operations and reducing our workforce by about 5 percent. One-time charges totaling $5.9 million after tax for this restructuring were recorded in the fourth quarter. Excluding nonrecurring items, net income for fiscal 2001 was $33.4 million or $1.44 per diluted share, down from $1.98 per share in fiscal 2000. Net income including the charge and a one-time gain in fiscal 2000, was $27.5 million or $1.18 per diluted share, compared to $2.05 in the previous year. Through our restructuring, we strive to balance the short- and long-term needs of employees, customers and our shareholders, and put Brady in a much stronger position when economic conditions improve. We expect to realize after-tax savings of about $6 million in fiscal 2002. PROGRESS ON KEY INITIATIVES It is during times of slower growth that it is most important to lay an even stronger foundation for the future. As a company focused on long-term growth and value creation, we continued to invest in our five key initiatives: process improvement, e-business, proprietary products, acquisitions and market-driven growth. [GRAPH] MARKET PLANNING NEW PRODUCT CUSTOMER ORDER DEVELOPMENT VALUE TO CASH CREATIONS HUMAN RESOURCES MANAGEMENT INFORMATION TECHNOLOGY MASTERDATA AND BUSINESS WAREHOUSE QUALITY MANAGEMENT STRATEGIC PLANNING/FINANCE BRADY'S VALUE CHAIN Brady's process improvement initiative integrates four key process areas supported by five key enablers. Process improvement and innovation, focused fully on the customer, are making Brady an even stronger leader in manufacturing. Our process-improvement initiative, named "Eclipse" for "Earning Customer Loyalty through Integrated Processes and Systems Everywhere," is transforming our processes for developing new products, creating value for customers and converting a customer order into cash. Eclipse is also improving strategic planning and financial operations throughout the company. Over the course of fiscal 2000 to fiscal 2004, we are investing more than $30 million in Eclipse to reduce Selling, General and Administrative 2001 HIGHLIGHTS
SEPTEMBER 2000 FEBRUARY 2001 MARCH 2001 Brady increases Brady establishes Brady again named to quarterly dividend manufacturing the list of "The 100 to shareholders to operations in Manaus Best Corporate $0.18 per share, in the Amazon region Citizens" by marking the 15th of Brazil. Business Ethics consecutive year the magazine, moving up company has from 44th to 27th on increased dividends the list. since going public in 1984.
BRADY CORPORATION 4 LETTER TO SHAREHOLDERS expenses as a percentage of sales; support ongoing double-digit sales growth with better customer and market information worldwide and a more robust new product-development process; and make other improvements including increasing inventory turns. Brady is streamlining and standardizing more than 1,200 specific processes throughout the entire organization to further enhance speed, flow, quality, cost and customer focus in everything from strategy to new product development to making and shipping product, and collecting on goods and services. This year we successfully implemented SAP software as the global enterprise resource planning (ERP) platform in many of our U.S. businesses and corporate headquarters. We launched modules for production planning, sales and distribution, quality management, finance and control, and materials management. We are in the process of converting our European operations to the system, and other operations worldwide will follow. Another change, effective August 1, 2001, is the combination of two of Brady's global operating groups, Graphics and Direct Marketing, into Graphics & Workplace Solutions. While each group had a distinct way of taking products to market, both supplied safety and facility identification products to the maintenance, repair and operations market. Now as one group with shared infrastructure, Graphics & Workplace Solutions can harness the power of a global production and distribution system to serve customers around the world more cost-effectively. E-BUSINESS We are also taking advantage of today's technologies to make our products and services more easily accessible around the world and to significantly reduce transaction costs. We continue to work to make every Brady business an electronic or Internet-enabled business with a goal of 50 percent of our business done electronically in 2003. This year, about 15 percent of total sales were done electronically, nearly doubled from about 8 percent of total sales last year. This year about three times as many distributors as last year took advantage of BradyServe(TM) online services to check the availability and pricing of stock products, order products and check the status of open orders and invoices. By connecting electronically to our channel partners, we can maximize service and reduce transaction costs. We also launched an automated Internet-based procurement system to encourage more competitive pricing from our suppliers and further reduce expenses. The new system includes evaluated receipt settlement (ERS), which eliminates the generation of paper purchase orders and paper invoices, and automatically matches receiving information to accounts payable activities. Today Brady and Seton offer more than 50,000 safety and facility identification products on the Internet. A new "Compliance Resource Center" provides instant access to Federal safety regulations with links to related Seton products, compliance checklists and other information. Customers can also access their order history, current business activity, tracking numbers and delivery dates. And they can also find value-adding features including the opportunity to have real-time chats with customer service representatives, pay online via credit card, and design custom safety signs and asset tags on-line. 2001 SALES BY BUSINESS SEGMENT [PIE CHART]
2001 ---- Graphics 23% Direct Marketing 31% Identification Solutions & Specialty Tapes 46%
MARCH 2001 APRIL 2001 MAY 2001 JULY 2001 Brady acquires Seton begins Brady Corporation Brady expands Balkhausen GmbH, a marketing of safety stock begins trading software offerings European products in Japan. on the Berlin Stock with the acquisition manufacturer of Exchange. of Eset, GmbH, precision die-cut Munich, Germany. parts and specialty materials.
2001 ANNUAL REPORT 5 LETTER TO SHAREHOLDERS Our Web-to-Workbench(TM) initiative allows customers to customize products on-line, automatically send the order into Brady's system for processing, and electronically pass it on to the shop floor for manufacturing and shipment. This breakthrough technology, integrating the Web to the manufacturing floor, allows Brady and Seton customers to create and purchase products such as Seton Duraguard(R) Property Identification Tags and custom signs with unprecedented speed, ease and convenience. [PHOTO] WEB-TO-WORKBENCH(TM) With Brady's Web-to-Workbench(TM) technology, custom-product orders move seamlessly from the customer to Brady's manufacturing floor. We are also meeting the challenge of serving customers from many European countries electronically with a multi-lingual Web site launched this year at www.bradyeurope.com. The advanced programming behind this site automatically selects the language specified by the user's browser. Customers can access country-specific technical support and customer-service information in seven predominant European languages (English, French, German, Dutch, Italian, Spanish and Swedish). The site also features downloadable product information and software customized for the language selected. Other e-business initiatives this year included customized Web interfaces for some of our key customers, enhanced "virtual" learning to ensure employees have the most up-to-date tools and skills needed in today's competitive marketplace, and a more robust investor-relations area of our Web site at www.investor.bradycorp.com. These efforts are all part of a multi-faceted, comprehensive and innovative e-business strategy designed to help the company utilize the Internet to leverage its position as a leading provider of high-performance identification solutions and safety products. NEW PRODUCTS Proprietary products continue to be a key growth strategy for Brady. Our research and development teams are focusing on high-impact initiatives as well as process-improvement efforts designed to maximize everything from "idea generation" to "commercialization" of new products. This year we launched a number of new label products, safety devices, printers and software, all designed to make the job -- from identifying and tracking, to safely repairing and maintaining -- more efficient, effective and easier to do. New label products include thinner, lighter labels for meeting the extreme challenges of printed-circuit-board manufacturing; and a new line of low-level security labels that provide the ideal deterrent to product theft, warranty-related tampering and product fraud. [PHOTO] NEW PRODUCTS Only 1 mil thick, Brady's new EDS labels are ideal for sensitive electronics applications where reducing overall product weight is critical. New safety products range from the Brady EZ Panel Loc(TM) circuit breaker lock-out system to a complete line of safety signage products compliant with new federal standards for size, shape, reflectivity and color. We also expanded our printer offerings with a new Bradyprinter(TM) model that offers 600 dpi resolutions for labels as small as one-eighth-inch high; and the next generation of our popular line of TLS 2200(R) printers, now with the capability to work as both a desktop or portable printer. BRADY CORPORATION 6 LETTER TO SHAREHOLDERS In addition to upgrades to our Codesoft(TM), LabelMark(TM) and LabelView(TM) lines of barcode software, we also offered MarkWare(TM) FE 1.0, our first Asian language version of our popular make-it-yourself safety and facility identification [PHOTO] NEW PRODUCTS Brady's EZ Panel Loc(TM) system provides a convenient solution to safely lockout virtually any circuit breaker. software; and new Brady Lockout-PRO(TM) Graphical Procedure Writing Software, a turnkey program for building an OSHA-compliant lockout-tagout program. You can read more about all of our new products on our Web site at www.bradycorp.com. ACQUISITIONS We made two acquisitions this year, both in Germany. In March 2001, we acquired Balkhausen GmbH, a manufacturer of precision die-cut parts and specialty materials. Balkhausen has developed a unique material and application solution to dissipate heat from electronic components, and provides us new development opportunities for specialty thermal-management materials. With electronics becoming more and more powerful, there is a tremendous amount of heat concentrated in smaller and smaller areas, shortening the lifespan of electronic components. Balkhausen's material/technology combination helps to remove the heat from isolated areas and effectively transfer it away from the devices by using heat sinks -- pieces of precision-cut copper or aluminum attached to printed circuit boards. The materials are particularly attractive to automotive electronics manufacturers, as an increasing portion of an auto's bill of materials is comprised of electronics. We expanded our software offerings with the acquisition of Eset, GmbH in July 2001. Eset has developed nearly 200 Windows(R) printer drivers in conjunction with its label-design software which will allow us to offer customers products that add even more value to their identification systems.* Eset's signature product, "Label and Form" software, is produced in German, French, Swedish and English, and is capable of printing directly from SAP and other enterprise-resource-planning systems without customization. We continue to look for acquisitions that expand our geographic and market reach, or bring new technologies to ensure Brady continues to be on the forefront in our markets. MARKET-DRIVEN GROWTH Market-driven growth for Brady has taken a decidedly international focus this year. Recognizing the potential for growth in Eastern Europe, we recently opened our first sales offices in Hungary and Poland. Brazil is providing us opportunities to grow our business with multinational companies there. To position Brady to best serve these customers, we opened our second manufacturing facility in Brazil, this time in the city of Manaus in the Amazon region. About 1,600 miles from our operation in Sao Paulo, it is located in an industrial free trade zone created by the Brazilian government and home to more than 400 multinational and domestic companies specializing in commercial electronics, injection molding and telecommunication manufacturing. The Brazilian government estimates total sales from the region to exceed $10 billion this year, and the region is experiencing industrial growth of more than 50 percent. We also began direct marketing safety products in Japan, offering signs, labels and other products with Kanji characters. Seton established a sales office, call center and [PHOTO] BALKHAUSEN Heat-sink technology, a Balkhausen specialty, extends the lifespan of small electronics components. *Windows is a registered trademark of Microsoft Corporation. 2001 ANNUAL REPORT 7 warehouse in Yokohama, Japan, to provide local customer service and order processing, convenient shipping, and customized products for customers in manufacturing, construction and other industries. Japanese companies take safety recommendations very seriously. To meet their [PHOTO] INTERNATIONAL EXPANSION Seton now offers safety signs and labels with Kanji characters to customers in Japan. needs, Seton is now one of the few companies to offer a convenient "one-stop-shopping" experience for hundreds of products to help customers provide a better, safer work environment. LOOKING AHEAD Through the years, Brady investors have enjoyed a tradition of strong growth and profitability. And we fully expect that tradition to continue over the long-term. Despite the economic difficulties of fiscal 2001, Brady remains a strong company, with a solid cash reserve and cash flow, and virtually no debt. We continue to strive for compound annual growth in sales of 15 percent on a rolling five-year basis, net income growth in excess of sales growth, and positive shareholder value enhancement. And we believe that we are on the right path to position Brady to thrive in the 21st century, by continuing our investments in process improvement, e-business, proprietary products, acquisitions and market-driven growth. The Brady management team and all 3,000 employees remain committed to revenue growth, cost control and resource utilization. We are working every day to create value for our customers, our employees, and our shareholders. Thank you for your support. Katherine M. Hudson Katherine M. Hudson President and Chief Executive Officer FINANCIAL REVIEW NOTE OF REPORTING CHANGE: Throughout this report, net sales and cost of sales figures reflect new accounting standards relative to costs incurred for shipping and handling in a sales transaction. As a result, net sales increased approximately 2 percent, with an offsetting increase in cost of sales. Earnings per share reporting is not impacted by this change. SELECTED FINANCIAL INFORMATION
(Dollars in Thousands, Except Per Share Amounts) Years Ended July 31, 1991 through 2001 2001 --------- OPERATING DATA NET SALES $ 545,944 Operating expenses: Cost of products sold 257,313 Research and development 20,329 Selling, general and administrative 214,220 Nonrecurring (credit) charge 9,560 --------- Total operating expenses 501,422 --------- OPERATING INCOME 44,522 OTHER INCOME AND (EXPENSE): Investment and other income - net 686 Interest expense (418) --------- Net other income 268 --------- Income before income taxes and cumulative effect of changes in accounting principles 44,790 INCOME TAXES 17,244 --------- Income before cumulative effect of changes in accounting principles 27,546 CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES FOR: Postretirement benefits (net of income taxes of $2,663) -- Income taxes -- NET INCOME $ 27,546 --------- NET INCOME PER COMMON SHARE (DILUTED): Class A Nonvoting $ 1.18 Class B Voting $ 1.15 CASH DIVIDENDS ON: Class A Common Stock $ .72 Class B Common Stock $ .69 BALANCE SHEET (at year end) Working capital $ 123,830 Total assets 392,476 Long-term obligations, less current maturities 4,144 Stockholders' investment 302,579 ---------
BRADY CORPORATION 8 EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION in $ millions [BAR GRAPH]
96 97 98 99 00 01 ------ ------ ------ ------ ------ ------ 51 65 65 77 90 76
2001 SALES BY REGION [PIE CHART] Europe 29% United States 56% Canada & Latin America 6% Asia 9%
DIVIDEND HISTORY annually per share In September 2001, Brady increased its dividend for the 16th consecutive year to $0.76 per share. [BAR GRAPH]
96 97 98 99 00 01 ------ ------ ------ ------ ------ ------ .40 .52 .60 .64 .68 .72
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 ------------------------------------------------------------------------------------------------------------------------------ $ 550,664 $ 479,025 $ 463,235 $ 433,649 $ 365,929 $ 319,946 $260,386 $ 247,286 $ 240,156 $ 214,812 245,587 216,060 212,980 201,664 172,813 149,218 122,661 118,617 114,321 100,546 20,555 17,116 20,287 16,300 11,309 10,426 10,318 12,132 10,001 9,176 215,231 182,688 178,648 165,317 140,642 119,717 97,932 92,449 93,931 84,936 -- (611) 5,390 -- -- -- -- (1,236) 6,562 -- ------------------------------------------------------------------------------------------------------------------------------ 481,373 415,253 417,305 383,281 324,764 279,361 230,911 221,962 224,815 194,658 ------------------------------------------------------------------------------------------------------------------------------ 69,291 63,772 45,930 50,368 41,165 40,585 29,475 25,324 15,341 20,154 7,418 1,455 638 1,159 4,570 4,609 837 559 239 2,845 (578) (445) (403) (256) (302) (555) (410) (54) (219) (548) ------------------------------------------------------------------------------------------------------------------------------ 6,840 1,010 235 903 4,268 4,054 427 505 20 2,297 ------------------------------------------------------------------------------------------------------------------------------ 76,131 64,782 46,165 51,271 45,433 44,639 29,902 25,829 15,361 22,451 28,930 25,198 18,129 19,564 17,406 16,728 11,362 8,973 6,972 7,054 ------------------------------------------------------------------------------------------------------------------------------ 47,201 39,584 28,036 31,707 28,027 27,911 18,540 16,856 8,389 15,397 -- -- -- -- -- -- -- -- (3,995) -- -- -- -- -- -- -- -- -- 661 -- $ 47,201 $ 39,584 $ 28,036 $ 31,707 $ 28,027 $ 27,911 $ 18,540 $ 16,856 $ 5,055 $ 15,397 ------------------------------------------------------------------------------------------------------------------------------ $ 2.05 $ 1.73 $ 1.23 $ 1.43 $ 1.26 $ 1.26 $ .84 $ .77 $ .22 $ .70 $ 2.02 $ 1.70 $ 1.20 $ 1.40 $ 1.23 $ 1.23 $ .81 $ .74 $ .19 $ .67 $ .68 $ .64 $ .60 $ .52 $ .40 $ .27 $ .23 $ .20 $ .19 $ .16 $ .65 $ .61 $ .57 $ .49 $ .37 $ .23 $ .19 $ .17 $ .15 $ .13 $ 116,084 $ 129,884 $ 125,386 $ 130,724 $ 109,688 $ 129,938 $ 100,023 $ 77,943 $ 66,093 $ 70,883 398,134 351,120 311,824 291,662 261,835 230,005 202,509 179,901 173,054 156,812 4,157 1,402 3,716 3,890 1,809 1,903 1,855 1,978 2,524 1,982 291,224 260,564 233,373 206,547 189,263 170,823 145,129 128,068 119,771 115,260 ------------------------------------------------------------------------------------------------------------------------------
2001 ANNUAL REPORT 9 SHAREHOLDER SERVICES COMMON SHARES Brady Corporation Class A Common Stock trades on the New York Stock Exchange under the symbol BRC. As of September 17, 2001, there were 362 Class A Common Stock shareholders of record and about 4,000 beneficial shareholders. There are three Class B Common Stock shareholders. Brady Corporation stock is also listed on the Berlin stock exchange. QUARTERLY STOCK DATA
2001 2000 1999 High Low High Low High Low ------------------------------------------------------------------ 4th Quarter $35.94 $28.67 $34.13 $27.00 $35.00 $24.13 3rd Quarter $38.83 $30.48 $32.38 $24.50 $27.50 $19.50 2nd Quarter $38.35 $27.08 $34.56 $26.25 $29.38 $22.50 1st Quarter $32.67 $26.92 $36.31 $25.63 $23.13 $16.25 ------------------------------------------------------------------
DIVIDENDS Brady has paid dividends on its Common Stock every quarter since going public in June 1984, and the Company has increased the dividend every year for each of the past 16 years. At its September 2001 meeting, the Board of Directors increased the quarterly dividend on Class A Common Stock to 19 cents per share per quarter, or $0.76 per year. Dividends are normally paid on the last day of October, January, April and July. DIVIDEND REINVESTMENT Shareholders of record may have their dividends automatically reinvested in Brady stock through a Dividend Reinvestment Program. For more information on this program, see the description on the Internet at www.bradycorp.com or call Brady's investor line at 414-438-6918. STOCK TRANSFER AGENT Firstar Bank N.A., 1555 North RiverCenter Drive, Suite 301, Milwaukee, WI 53212; [PHOTO] phone: 1-800-637-7549 www.firstarinvestorservice.com BRADY INFORMATION Brady's Internet site at www.investor.bradycorp.com contains investor presentations, 10-K and 10-Q filings, annual reports, news releases, frequently asked investor questions, stock prices, a Brady investment calculator, product information and a variety of other information about Brady. INFORMATION REQUESTS AND INVESTOR NEWS LINE A phone system at 414-438-6918 enables you to listen to financial news highlights, request printed 10-K and other financial information, request dividend reinvestment information, or be transferred to an investor relations representative. Or you may send your information requests to Investor Relations, Brady Corporation, P.O. Box 571, Milwaukee, WI 53201-0571, or e-mail investor@bradycorp.com. ANALYST AND INVESTOR CONTACT Barbara Bolens, Director of Investor Relations, 414-438-6940. ANNUAL MEETING The Brady Corporation Annual Meeting will be at 9 a.m., Thursday, November 15, 2001, at Brady Corporate Headquarters, 6555 W. Good Hope Road, Milwaukee, Wisconsin. Highlights will be posted on the Internet at www.investor.bradycorp.com. 2001 ANNUAL REPORT From recycling last year's photo of President and CEO Katherine Hudson, to reducing the number of pages, selecting in-house design and less expensive paper, and substituting SEC Form 10-K for a separate financial section, Brady's 2001 annual report reflects just one of the many ways Brady is managing costs in these challenging economic times. Cost-control and resource-utilization efforts such as these help Brady to focus on the strategic initiatives that will add long-term value for shareholders, customers and employees. [PHOTO] BRADY CORPORATION 10 BRADY LOCATIONS - United States Brady Australia Pty. Ltd. - - France - Korea Visi Sign Brady Corporation 10 Reid Street Braton Group s.a.r.l. Brady Korea Ltd. P.O. Box 571 Bayswater, Victoria 3153 Brady France 5F Hyo-Won Building Milwaukee, WI 53201 Australia 1 Rue de Terre Nueve - Bat. E 99-5 GaRak-Dong, SongPa-Ku BP 362 - ZAC Les Ulis Seoul, 138-720 Brady Worldwide, Inc. - 91959 Courtaboeuf Cedex, Republic of Korea (South) Identification Solutions and France - Belgium Global Die-Cut Products W.H. Brady, n.v. Tricor Groupe S.A. - Seton Brady Korea Ltd. 6555 W. Good Hope Rd. Industrie Park C/3 45 Avenue de L'Europe 130-8 Dong An-Ri, Okchon-EUP Milwaukee, WI 53223 Lindestraat 20 BP 132 Okchon-Gun, Chung Buk, 373-800 B-9240 Zele, Belgium 59436 Roncq Cedex, France Republic of Korea (South) Brady Worldwide, Inc. - Coated Products - BRAZIL Brady LettraSoft S.A. - MALAYSIA P.O. Box 298 13 Rue des Emaraudes 2230 W. Florist Ave. W.H.B. do Brasil Ltda. F-69006 Lyons, France Brady Corporation S.E.A. Milwaukee, WI 53201-0298 Rua Rosangela Donata Pte. Ltd. De Oliveira 30 Brady Software Group Europe 54-G-2, Wisma Sri Mata Brady Worldwide, Inc. - 06236-110 Osasco Z.I. Est Jalan Van Praagh Signmark Sao Paulo, Brazil 2 rue Vincent Van Gogh 11600 Penang, Malaysia Tobey Research & Innovation 32020 Auch, France 2221 W. Camden Rd. Signals Brady Technology Sdn Bhd Milwaukee, WI 53209 W.H.B. do Brasil Ltda. Rond Point de la Republique Level 41 - Suite B Seton Brazil Z.I. de Perigny Menara Maxis Brady Worldwide, Inc. - Centro Empresarial 17181 Perigny Cedex, France Kuala Lumpur City Center AIDC Software & Services Alphaville 50088 Kuala Lumpur 12000 W. Park Place Av. Jurua, 105- Modelo 5 - GERMANY Milwaukee, WI 53224 06455-010 Barueri - MEXICO Sao Paulo, Brazil Brady GmbH Brady Business Process Division ISST W.H. Brady S. de R.L. de C. V. Innovation Center W.H.B. do Brasil Ltda. Lagerstrasse 13 lago Iseo No. 91 5300 N. 118th Court, Bldg. F Brady Manaus 64807 Dieburg, Germany Col. Anahuac Milwaukee, WI 53225 Avenida Solimoes, N. 2100 Brady GmbH- Division Systeme 11320 Mexico D.F., Mexico Distrito Industrial da Seton Division Brady Worldwide, Inc. - Suframa Otto-Hahn-Str. 5-7 PHILIPPINES Varitronics 69075-200 Manaus 63222 Langen, Germany 6835 Winnetka Circle Amazonas, Brazil Brady Corporation S.E.A. Brooklyn Park, MN 55428 Brady LettraSoft GmbH Pte. Ltd. - CANADA Felix Klein Strasse 2 9 Narra Drive, Brady Worldwide, Inc. - 40474 Duesseldorf, Germany Palmera Heights III Barcodes West W.H.B. Identification Valley Golf, Cainta Rizal 1560 First Avenue South Solutions, Inc. Brady GmbH - Balkhausen Philippines 1900 Seattle, WA 98134 Seton & Brady Canada Rudolph-Diesel-Strasse 17 56 Leek Crescent 28857 Syke, Germany - SINGAPORE Seton Identification Products Richmond Hill 20 Thompson Rd. Ontario, Canada - HONG KONG Brady Corporation S.E.A. Branford, CT 06405 Pte. Ltd. - CHINA Brady Corporation S.E.A. Brady Corporation Asia Seton Identification Products Pte. Ltd. Pte. Ltd. 4451 Eucalyptus Ave. Brady (Wuxi) Co. Ltd. Unit 03/04, 18th Floor 55 Ayer Rajah Crescent Suite 330 Room 806, Block 1, Bright CRE Centre #03-25 Chino, CA 91710 China 889 Cheung Sha Wan Road Ayer Rajah Industrial Estate Chang An Building Kowloon, Hong Kong Singapore 139949 Brady Precision Die-Cut 7 Jian Guo Men Nei Da Jie Products South Dong Cheng District - SWEDEN 6500 NW 12th Avenue, Suite 119 Beijing, PRC - ITALY Fort Lauderdale, FL 33309 Brady AB Brady (Wuxi) Co. Ltd. Seton Italia Srl Karins Vag 5 Brady Imtec Unit F. 23F Via Luigi Lazzaroni 7 194 54 Upplands Vasby 7 Corporate Dr. Zhao Feng World Trade 21047 Saronno (VA), Italy Sweden Keene, NH 03431 Building 369 Jiangsu Rd. - JAPAN - TAIWAN Brady Data Recognition Shanghai 200050, PRC International Nippon Brady K.K. Brady Corporation S.E.A. 2929 Longhorn Blvd., Suite 103 Brady (Wuxi) Co. Ltd. Seton Japan Pte. Ltd. Austin, TX 78758 No. 229 TVP Building , 3rd Floor 6F-2, 412, Chung Hsiao E. Rd. Xing Chuang Ba Lu 3-9-13 Moriya-cho, Kanagawa-Ku SEC 5 - AUSTRALIA Wuxi-Singapore Yokohama, Kanagawa 221-0022 Taipei 110, Taiwan Industrial Park Japan Brady Australia Pty. Ltd. Wuxi, Jinagsu, PRC 214028 Seton Australia Pty. Ltd. - UNITED KINGDOM 112 Christina Road Brady (Shanghai) Villawood NSW 2163 International W.H. Brady Co. Ltd. Australia Trading Co. Ltd. Wildmere Industrial Estate Rm. 518, Hengshan Banbury, Oxfordshire Office Bldg. 0X16 7JU, United Kingdom 38# Yinglun Rd., Waigaoqiao Seton Ltd. Shanghai 200131, PRC Canada Close Banbury, Oxon OX16 7RT, United Kingdom
2001 ANNUAL REPORT [BRADY LOGO] WWW.BRADYCORP.COM BRADY CORPORATION P.O. BOX 571 MILWAUKEE, WI 53201-0571 10-LP-01-30 (C)Brady Corporation. A All Rights Reserved. {RECYCLE LOGO] In keeping with Brady Corporation's policy of environmental stewardship, this brochure is recyclable.