Avery Dennison Corporate Profile

Transcription

1 Avery Dennison Corporate Profile

2 Our Story Ray Stanton ( Stan ) Avery invented the world s first self-adhesive label as a way to merchandise objects. In 1935, he founded Avery Adhesives in downtown Los Angeles and, in 1990, the company merged with Dennison Manufacturing to form Avery Dennison. In over 80 years, we have grown from one bright idea into a Fortune 500 global corporation that continues to set new standards for quality and innovation in materials science. 2

3 Who We Are Avery Dennison is a global materials science and manufacturing company specializing in the design and manufacture of a wide variety of labeling and functional materials. The company s products are used in nearly every major industry. 3 Corporate Headquarters in Glendale, California Operations in more than 50 countries with approximately 30,000 employees worldwide Sales of $6.6 billion in 2017; Fortune rank: 430

4 Our Businesses at a Glance Label and Graphic Materials Label and Packaging Materials Graphics Solutions Reflective Solutions 2017 Sales (in millions) $4,512 Retail Branding and Information Solutions Tickets, Tags, Labels, and Embellishments for Retail Apparel Radio-Frequency Identification Printer Solutions $1,511. Industrial and Healthcare Materials 4 Performance Tapes Adhesives Fastener Solutions Medical Solutions $591

5 FINANCIAL SNAPSHOT 2017 Sales Organic Sales Change Adjusted Operating Margin 5 $4.5 bil. 4.2% 12.9% Sales by GEOGRAPHY Sales by PRODUCT Label and Graphic Materials

6 FINANCIAL SNAPSHOT 2017 Sales 6 $1.5 bil. Organic Sales Change 5.0% Adjusted Operating Margin 9.3% Sales by END MARKET Sales by PRODUCT Retail Branding and Information Solutions

7 FINANCIAL SNAPSHOT 2017 Sales 7 $591 mil. Organic Sales Change 2.0% Adjusted Operating Margin 9.2% Sales by GEOGRAPHY Sales by PRODUCT Industrial and Healthcare Materials

8 Our Sustainable Competitive Advantages Global scale; 180+ operating locations Materials science capabilities focused on pressure-sensitive adhesives 8 Recognized industry leader with a global footprint, including a strong presence in emerging markets, and economies of scale R&D and innovation breakthroughs that anticipate and meet market needs Innovative process technology Operational and commercial excellence

9 Eight Values. One Team. 9

10 Creating Positive Change At Avery Dennison, we re a force for good embedded in industries and communities worldwide. 10 Sustainable Products: We invent products and processes that make our customers operations and products more sustainable. Corporate Social Responsibility: The Avery Dennison Foundation advances the causes of education, sustainability, and women s empowerment in the communities where Avery Dennison employees live and work. Diversity and Inclusion: We re creating an inclusive environment, with a strong focus on gender diversity.

11 2025 Sustainability Goals Avery Dennison established sustainability targets for 2025 in eight key areas. Some highlights of our progress at the end of 2016: 11 Nearly 94% of our paper came from sources with a certified claim, with 60% of our face paper Forest Stewardship Council certified. We reduced our greenhouse gas emissions by 12%. Our 2025 target is to achieve at least 3% absolute reduction year over year. 91% of our solid waste was diverted from landfills, with the vision of ultimately sending zero waste to landfills.

12 Creating Value for all our Stakeholders Customers Employees Deliver industry leading service, quality, and innovation Engage and develop our people Maintain a safe working environment Community Reduce greenhouse gas emissions Responsibly source paper, films, and chemicals Eliminate waste (1) Measure of stock delivery flexibility for Label and Packaging Materials (2) Composite engagement score based on motivation level, confidence in strategy, and likelihood of recommending Avery Dennison as a place to work (3) Energy Intensity measured in megawatt hours per million square meters produced in the Material businesses; absolute greenhouse gas emissions reduced by ~12% in Shareholders Deliver superior total shareholder return Strong corporate governance

13 2018 Avery Dennison Corporation. All rights reserved. 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 trademarks of their respective owners. Fortune 500 is a trademark of Time, Inc. Branding and other information on any samples depicted is fictitious. Any resemblance to actual names is purely coincidental.

14 Appendix

15 Company Leadership Team 15

16 Company Videos Company Vision: Inspired Brands. Intelligent World. Our Values: Eight Values. One Team. Sustainability: A Force For Good Employee Experience: A Day in the Life Company History: Gentle Giant 16

17 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 certain non-gaap financial measures. These non-gaap financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. These non-gaap financial measures are intended to supplement presentation of our financial results that are prepared in accordance with GAAP. Based upon feedback from investors and financial analysts, we believe that the supplemental non-gaap financial measures we provide are useful to their assessment of our performance and operating trends, as well as liquidity. Our non-gaap financial measures exclude the impact of certain events, activities or strategic decisions. The accounting effects of these events, activities or decisions, which are included in the GAAP financial measures, may make it difficult to assess our underlying performance in a single period. By excluding the accounting effects, both positive or negative, of certain items (e.g., restructuring charges, legal settlements, certain effects of strategic transactions and related costs, losses from debt extinguishments, gains and losses from curtailment and settlement of pension obligations, gains or losses on sales of certain assets, and other items), we believe that we are providing meaningful supplemental information that facilitates an understanding of our core operating results and liquidity measures. These non-gaap financial measures are used internally to evaluate trends in our underlying performance, as well as to facilitate comparison to the results of competitors for a single period. While some of the items we exclude from GAAP financial measures recur, they tend to be disparate in amount, frequency, or timing. We use the following non-gaap financial measures in this presentation: Sales change ex. currency refers to the increase or decrease in sales excluding the estimated impact of foreign currency translation. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior period results translated at current period average exchange rates to exclude the effect of currency fluctuations. Organic sales change refers to the increase or decrease in sales excluding the estimated impact of foreign currency translation, product line exits, acquisitions and divestitures, and, where applicable, the extra week in our fiscal year. We believe that sales change ex. currency and organic sales change assist investors in evaluating the sales growth from the ongoing activities of our businesses and provide greater ability to evaluate our results from period to period. Adjusted operating income refers to income before interest expense, other non-operating expense, and taxes, excluding restructuring charges and other items. Adjusted operating margin refers to adjusted operating income as a percentage of sales. We believe that adjusted operating margin assists investors in understanding our core operating trends and comparing our results with those of our competitors. 17

18 Organic Sales Change by Segment 18

19 Adjusted Operating Margin LGM 19

20 Adjusted Operating Margin RBIS 20

21 Adjusted Operating Margin IHM 21

22 Contact Us Have a question or comment regarding this corporate presentation? Contact us by sending an to Corporate.CreativeServices@averydennison.com 22