Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Investor Presentation (August 2025)
49 slides from Avery Dennison's investor presentation, August 2025
Slide 1: Investor Presentation August 2025
Investor Presentation August 2025 August 2025 Investor Presentation 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this document are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, and financial or other business targe
Slide 3: Avery Dennison at a glance
Click here to learn more Avery Dennison at a glance 2024 Net Sales ● Recognized industry leader $8.8 Billion ● Global materials science and digital identification solutions company ● Provider of a wide range of branding and information solutions that optimize labor 31% and supply chain efficiency, red
Slide 4: Creating superior long-term value
Creating superior long-term value ● Large, growing and diverse end markets, largely anchored in consumer staples ● #1 player in our primary businesses, leveraging strong competitive advantages: ○ Global scale, materials science, process technology and innovation capabilities, operational excellence
Slide 5: Broad exposure to diverse markets, with increasing portfolio strength
Broad exposure to diverse markets, with increasing portfolio strength Sales by End Market(1) Sales by Geography(1) Sales by Category(1) Other Ind u Asia Foo Du stria rab l/ Pacific d le China U.S. HPC ~40% High- ~44% ~60% EEMEA value High-value Staples Appare l up 10 pts. Base e vs. 2019 verag Be W.
Slide 6: Superior earnings compounder over the long term
Superior earnings compounder over the long term, with a consistent track record of delivering GDP+ growth, margin expansion and top-quartile ROTC 2011-2015 2013-2018 2016-2021 2020-2025 2023-2028 (1) TARGETS TARGETS TARGETS TARGETS TARGETS Sales Growth 3%-5% 4%-5% 5%+ 5%+~7%‘20-’24 ex. curr. 5%+ 15%
Slide 7: Our strategies to continue to deliver GDP+ growth and top quartile returns
Our strategies to continue to deliver GDP+ growth and top quartile returns 1 Drive outsized growth in high-value categories 2 Grow profitably in our base businesses 3 Lead at the intersection of the physical and digital 4 Effectively allocate capital and relentlessly focus on productivity 5 Lead in a
Slide 8: Unlocking Value: Expanding High-Value Category exposure
Unlocking Value: Expanding High-Value Category exposure is a key contributor to driving sales outgrowth and margin expansion over the long term Sales by Category(1) 2014 2019 2024 High-value Base ~25% ~33% ~44% 2014 to 2019 2019 to 2024 Starting Point Est. HVC Organic (2014) Growth(2)(3) HSD CAGR MS
Slide 9: Leveraging the strength of our portfolio to help address key industry challenges
Click here to learn more Leveraging the strength of our portfolio to help address key industry challenges Optimizing labor and supply chain Reducing waste efficiency Advancing sustainability, Helping brands and circularity and consumers better connect transparency August 2025 Investor Presentation 9
Slide 10: Together, our businesses create a unique opportunity for significant value creation
Together, our businesses create a unique opportunity for significant value creation Materials Solutions Group Group ● Industry leader ● Industry leader ● Stable and diverse end Intelligent Labels ● Relevant data management and digital markets with GDP+ growth ● Industry leader capabilities, with end-
Slide 11: Targeting strong top-line growth over the long term
Targeting strong top-line growth over the long term Acquisitions (accelerate our 5%+ strategies) Sales Growth 1.5+ pts. ~15%+ growth in Ex. Currency Intelligent Labels ~2 pts. outsized growth in high-value categories M&A ~1 pt. grow profitably Intelligent in the base Labels High-value Categories Base
Slide 12: Our long-term financial framework
Our long-term financial framework 5%+ 17%+ Sales Growth Ex. Adj. EBITDA Margin Currency in 2028 Top 10% Quartile(1) Adj. EPS Growth ROTC Note: Long-term targets are annualized and represent a 5-year horizon ending in 2028 (1) Compared to peer group on page 71 of our 2025 Proxy Statement August 2025 I
Slide 13: Disciplined approach to capital allocation
Disciplined approach to capital allocation Strong balance sheet with target leverage ratio that provides ample capacity for investment and lowest WACC over cycles Long-term Capital Uses ~$8B of capital available for deployment 2024-2028 (% of total cap. avail.) ● Investing organically and through M&
Slide 14: Segment Overview
Segment Overview August 2025 Investor Presentation 14
Slide 15: Materials Group
Materials Group 2024 Sales by Product Product Category Label Materials High-value Categories Graphics & Reflectives 36% Performance Tapes & Medical Other 2024 Financial Snapshot 2024 Sales by Geography Net Sales $6.0 bil. Est. End Market U.S. & Canada Emerging Sales Change Ex. Currency Western Europe
Slide 16: Materials Group delivers growth and significant returns
Materials Group delivers growth and significant returns Leader in growing self-adhesive label materials industry (~2.5X next largest competitor) Clear and sustainable competitive advantages ● Global scale with 10,000+ converting partners ● Materials science, including vertical integration in adhesive
Slide 17: Continuing to deliver outsized growth in high-value categories
Continuing to deliver outsized growth in high-value categories, supported by secular trends Specialty Labels Materials Group ● Premiumization in wine, spirits and craft beer High-value Categories(1) ● Aging populations and cold chain logistics (pharma) ● Freshness, multi-use and convenience (reclosu
Slide 18: Solutions Group
Solutions Group 2024 Sales by Product Product Category Base Solutions High-value Intelligent Labels Categories Vestcom 59% Ext. Embellishments (Embelex) 2022 Financial Snapshot 2024 Net Sales $2.7 bil. 2024 Sales by Geography Est. End Market U.S. & Canada Sales Change Ex. Currency 5-YR CAGR 11.7% Eu
Slide 19: Solutions Group offers significant profitable growth opportunity
Solutions Group offers significant profitable growth opportunity as we unlock new value for customers Leader in global branding and identification solutions that help address key industry challenges Demonstrated competitive advantages ● Global scale and footprint; vertically integrated ● Innovation lea
Slide 20: Unlocking large, expanding, untapped Intelligent Label end markets
Unlocking large, expanding, untapped and attractive Intelligent Label end markets ⬤ Total market est. ⬤ IL addressable market est. 200 (billions of units) 45 20 60 ⬤ Current IL adoption est. 10 5 10 Apparel General Beauty & Food Logistics Auto Healthcare Retail Personal Care Attractive 1. Significant
Slide 21: Vertical integration across the RFID technology ecosystem
Our vertical integration across the RFID technology ecosystem helps us drive adoption and create value Base Media Service Print/ Readers/ Software/ Solutions/ Chips Inlays materials conversion bureau encode infra. SaaS Services Chip Inlay Materials Inlay Integration / Data Printer Digital ID Segment
Slide 22: Our leading position in Intelligent Labels is delivering significant growth
Our leading position in Intelligent Labels is delivering significant growth Our Competitive Advantages: Apparel Industry-leading innovation General Retail ● All Other 1 5 %rowth ○ Broad product and IP portfolio ~ c Sales G‘18-’24) $0.9B ○ Experienced team ani R( Org R CAG ○ State-of-the-art digital c
Slide 23: Embelex: helping brands and consumers better connect
Click here to learn more Embelex: helping brands and consumers better connect Competitive Strong growth platform Advantages 15%+ Org. Sales CAGR Global scale 2018 2019 2020 2021 2022 2023 2024 Customization and Elevating Brand Consumer Personalization Identity Experience Value Creation ● Leading gro
Slide 24: Vestcom productivity and media solutions for the retail shelf-edge
Vestcom provides industry-leading productivity and Sales by End Market media solutions for the retail shelf-edge, with strong data management capabilities DOLLAR STORES ● Strong growth and margins ● Consumer engagement solutions ● Delivering strong ROI for customers enable sales lift through promoti
Slide 25: Appendix A
Appendix A Select slides from Q2 2025 earnings release (all forward-looking statements as of July 22, 2025) and supplemental information August 2025 Investor Presentation 25
Slide 26: Second quarter 2025 financial review
Second quarter 2025 financial review Reported operating income of $286 mil. ● Adj. EBITDA margin (non-GAAP) of 16.6%, up 20 bps Net sales of $2.2 bil. ● Adj. operating margin (non-GAAP) of 12.9%, comparable to PY Organic sales change (non-GAAP) down 1.0% Strong adj. FCF (non-GAAP) of $189 mil. Return
Slide 27: Delivered solid Q2, with EPS above midpoint
Delivered solid Q2, with EPS above midpoint, in a dynamic environment Q2 adj. EPS (non-GAAP) of $2.42, up 5% sequentially and comparable to PY ● Outsized growth in high-value categories and productivity in the base offset more than 10 cent impact from tariffs on apparel/general retail sourcing volum
Slide 28: Second quarter 2025 segment review
Second quarter 2025 segment review Materials Group delivered strong productivity and margins on modest volume growth ● Organic sales down 1% ○ Volume/mix up LSD, which was more than offset by deflation-related price reductions ● Strong adj. EBITDA margin of 17.8%, down 10 bps vs. PY Solutions Group r
Slide 29: Trade policy continues to evolve
Trade policy continues to evolve Mitigating direct impact from recent tariffs ● Vast majority (~90%) of global material cost is not subject to tariffs ● In Q2, implemented sourcing and pricing actions to largely mitigate LSD tariff-related cost increases Indirect impact from tariffs remains more unc
Slide 30: Enterprise-wide Intelligent Labels
Enterprise-wide Intelligent Labels 2024 Sales by category Overall Results Apparel ● Q2 sales comparable to PY, up MSD sequentially ○ Apparel/General retail categories down MSD vs. PY General Retail ○ Other categories up mid-teens vs. PY $0.9B Food & Logistics Key End Market Insights All Other Appare
Slide 31: Q3 2025 EPS Guidance
Q3 2025 EPS Guidance (as of July 22, 2025) Low High Reported EPS $2.14 $2.30 Est. restructuring costs and other items ~$0.10 ~$0.10 Adjusted EPS $2.24 $2.40 In Q3, anticipate adj. EPS down sequentially driven by typical volume seasonality ● Anticipate slight sales growth vs. prior year ● Macro uncer
Slide 32: Diversified geographic exposure, a competitive strength
Diversified geographic exposure, a competitive strength Sales by Manufacturing Location(1) Est. Sales by End Market(1) Other Other LAT ● Vast majority of Asia Asia AM U.S.-produced sales are for Pacific S. A Pacific domestic consumption s ia U.S. U.S. China ~30%~30% ~8% ● Nearly all of U.S. U.S./Canada
Slide 33: Broad exposure to diverse end markets across portfolio
Broad exposure to diverse end markets across portfolio Est. 2024 Sales by End Market General industrial, building and construction, electronics, automotive, Food, home and Industrial/ appliances/whitegoods, personal care, beer Durable architecture, corporate and beverage, wine branding and signage a
Slide 34: Disciplined approach to capital allocation
Disciplined approach to capital allocation ● Strong balance sheet with ample capacity; 2.3x net debt to adj. EBITDA ratio at end of Q2 ● Continuing to invest organically in our businesses ● Growing our dividend in-line with earnings over the long term ● Disciplined deployment of capital for strategi
Slide 35: Progress vs. 2025 long-term targets
Progress vs. 2025 long-term targets 2020-2025 2020-2024 TARGETS RESULTS Sales Growth Ex. Currency(1) 5%+ 7% 4-YR CAGR Adjusted EBITDA Growth(1)(2) 6.5% 8% 4-YR CAGR ~9% ex-curr. Adjusted EBITDA Margin 16%+ 16.4% in 2025 in 2024 Adjusted EPS Growth(1) 10% 7.4% 4-YR CAGR ~9% ex-curr. ROTC 18%+ 16% in
Slide 36: Our 2030 Sustainability Goals
Our 2030 Sustainability Goals Baseline (2015) 2024 Results Satisfy the recycling, composting or reuse requirements of all single-use consumer packaging and apparel with our products and solutions. Deliver innovations Solutions Group 78% that advance the circular 100% of our core product categories (
Slide 37: Appendix B
Appendix B Summary Financials & Reconciliation of Non-GAAP Financial Measures from GAAP August 2025 Investor Presentation 37
Slide 38: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures as defined by SEC rules. We report our financial results in conformity with accounting principles generally accepted in the United States of America, or GAAP, and also communicate with investors using cert
Slide 39: Organic Sales Change – Avery Dennison
Organic Sales Change – Avery Dennison (1) (1) (1) Totals may not sum due to rounding August 2025 Investor Presentation 39
Slide 40: Organic Sales Change – by Segment
Organic Sales Change – by Segment (1) (1) (1) (1) (1) Totals may not sum due to rounding August 2025 Investor Presentation 40
Slide 41: Adjusted Operating Margin and EBITDA — Avery Dennison
Adjusted Operating Margin and EBITDA — Avery Dennison (1) (1) GAAP adjustments for 2014-2015 reflect the previously disclosed impact of the third quarter of 2015 revision to certain benefit plan balances, which had an immaterial impact on the non-GAAP amounts. August 2025 Investor Presentation 41
Slide 42: Adjusted Operating Margin and EBITDA — by Segment
Adjusted Operating Margin and EBITDA — by Segment August 2025 Investor Presentation 42
Slide 43: Adjusted EPS
Adjusted EPS (1) The adjusted tax rate was 26.0%, 25.9%, 25.8%, 24.7%, 25.0%, 24.1%, and 24.6% for six months ended June 28, 2025, 2024, 2023, 2022, 2021, 2020, and 2019, respectively. (1) Includes restructuring and related charges, transaction and related costs, gain/(loss) on venture and other inv
Slide 44: Adj. EBITDA ex. currency – Avery Dennison
Adj. EBITDA ex. currency – Avery Dennison (1) (1) (1) Totals may not sum due to rounding August 2025 Investor Presentation 44
Slide 45: Adj. EPS change ex. currency – Avery Dennison
Adj. EPS change ex. currency – Avery Dennison (1) (1) Totals may not sum due to rounding August 2025 Investor Presentation 45
Slide 46: Return on total capital (ROTC)
Return on total capital (ROTC) August 2025 Investor Presentation 46
Slide 47: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA August 2025 Investor Presentation 47
Slide 48: Adjusted Free Cash Flow (FCF)
Adjusted Free Cash Flow (FCF) August 2025 Investor Presentation 48
Slide 49: Thank you.
Thank you. averydennison.com #MakingPossible © 2025 Avery Dennison Corporation. All rights reserved. The “Making Possible” tagline, Avery Dennison and all other Avery Dennison brands, product names and codes are trademarks of Avery Dennison Corporation. All other brands or product names are trademar