avery dennison corporate proﬁle · anne hill svp, chro labels, rbis danny allouche vp, strategy...

Classification: Avery Dennison - Public 1March 2020 Avery Dennison Corporate Profile

Avery Dennison Corporate ProfileMarch 2020


Presentation OverviewOur StoryWho We AreOur BusinessesOur Competitive AdvantagesOur ValuesOur 2025 Sustainability GoalsHow We Are Creating Value for All Our StakeholdersAppendix


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.

Over the past 85 years, we have grown from one bright idea into a global Fortune 500® corporation that continues to advance quality and innovation in materials science.

3Classification: Avery Dennison - Public


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. Our products are used in nearly every major industry.

Corporate headquarters in

Glendale, California

Number of employees worldwide

More than 30,000Fortune rank as of

the end of 2019

425

Operations in more than

50 countries

Sales in 2019

$7.1 billion


Our Businesses at a Glance

Label and Graphic Materials● Label and Packaging Materials● Graphics Solutions● Reflective Solutions

Retail Branding andInformation Solutions● Tickets, Tags, Labels, and

Embellishments for Retail Apparel● Radio-Frequency Identification● Printer Solutions

Industrial andHealthcare Materials● Performance Tapes● Adhesives● Fastener Solutions● Medical Solutions

$4.7 bil. $1.7 bil. $674 mil.2019 Sales


Label and Graphic Materials

Sales $4.7 bil.

Organic Sales Change 1.2%

Adjusted Operating Margin 13.3%

Sales by Product Base Label

Specialty / Durables

Graphics

Reflectives

Sales by Geography U.S.

Western Europe

Asia

E. Europe & MENA

Latin America

High ValueCategories

~37%

EmergingMarkets

~39%

Classification: Avery Dennison - Public 6

2019 Financial Snapshot


Retail Branding andInformation Solutions

Sales $1.7 bil.



Sales by Product Apparel Tags and Labels

RFID

Ext. Embellishment

Sales by End Market Europe

U.S.

Asia


~27%

7


Classification: Avery Dennison - Public


Industrial andHealthcare Materials

Sales $674 mil



Sales by Product Industrial

Healthcare

Retail

Sales by Geography U.S.

Asia Pacific

Europe

Latin America


~74%

8


Classification: Avery Dennison - Public


Our Competitive Advantages

● Global scale; 180+ operating locationsRecognized industry leader with a global footprint, including a strong presence in emerging markets

● Materials science capabilities focused on pressure-sensitive adhesivesR&D and innovation breakthroughs that anticipate and meet market needs

● Innovative process technology● Operational and commercial excellence

Classification: Avery Dennison - Public 9February 2020 Avery Dennison Corporate Profile


Our Values

IntegrityWe are driven by

doing the right thing.Always.

External FocusWe get out to

get better.

SustainabilityWe are focused on the long-term health of our business, planet, and

communities.

DiversityWe gain strengthfrom diverse ideas

and teams.

TeamworkWe are better when

we work together and put others ahead of

ourselves.

InnovationWe use imagination

and intellect to create new possibilities.

CourageWe are brave in the

face of adversity andthe unknown.

ExcellenceWe expect the bestfrom ourselves and

each other.


How We Are Creating Positive Change

Sustainable ProductsWe invent products and processes that make our customers’ operations and products more sustainable.

We are a force for good embedded in industries and communities worldwide.

Corporate Social ResponsibilityThe Avery Dennison Foundation advances the causes of education, sustainability, and women’s empowerment in the communities where our employees live and work.

Diversity and InclusionWe’re creating an inclusive environment, with a strong focus on gender diversity.


Our 2025 Sustainability Goals

2025 Goals 2019 Progress

Reduce absolute greenhouse gas emissions (GHG) by 3% year-over-year, and at least a 26% reduction compared to our 2015 baseline.

As of September 2019, we reduced emissions by more than 30% against our baseline.

We will source 100% certified paper, of which at least 70% will be Forest Stewardship Council® (FSC)-certified.

Over 88% of our paper is certified. Close to 79% of our face paper is FSC-certified.

Our operations will be 95% landfill-free, with 75% of our waste repurposed.

As of November 2019, 94% of waste from our operations was diverted from landfills and we recycled 65% of our waste.

We will maintain world class safety andengagement scores.

● We achieved a world-class Recordable Incident Rate of 0.23.● We achieve a first-rate 82% employee engagement score.

We will cultivate a diverse workforce with 40% of leadership positions filled by women.

34% of our manager level and above positions were filled by women, up from 27% in 2015.


How We Are Creating Value For All Our Stakeholders

Customers Employees Community Shareholders

• Deliver industry leading service, quality, and innovation

• Engage and develop our people• Maintain a safe working

environment

• Reduce greenhouse gas emissions• Responsibly source paper, films,

and chemicals• Eliminate waste

• Deliver superior total shareholder return

• Strong corporate governance

(1) Measure of stock delivery flexibility for Label and Packaging Materials.(2) Energy Intensity measured in megawatt hours per million square meters produced in the Material businesses.Customer Service Flexibility and Energy Intensity 2019 figures are year to date.

81% 81%82%

96% 96%96.7%

1 2

Q1-17 93%

Q1-18 91.9%

Q1-19 91.4%


Appendix


Mitch ButierChairman, President & CEO

Deon StanderVP/GM, RBIS

Susan C. MillerSVP, General Counsel & Secretary

Anne HillSVP, CHRO

Danny AlloucheVP, Strategy & Corporate Development

Nick ColistoVP, CIO

Francisco MeloVP/GM, Intelligent Labels, RBIS

Hassan RmaileVP/GM LGM EMEA

Kamran KianVP, Supply Chain & Operations, LGM

Jeroen DiderichVP/GM, LGM North America

Anil SharmaVP/GM, LGM Asia Pacific

Ronaldo MelloVP/GM, LGM Latin America

Pascale WauteletVP, R&D, LGM

LGM RBIS

OpenGreg Lovins (Interim)VP/GM, IHM

IHM

Greg LovinsSVP, CFO

Functions

Materials

Company Leadership Team


Company Videos

Company VisionAvery Dennison Vision Video

Our ValuesEight Values. One Team

SustainabilityA Force For Good

Careers VideoYou Make the Difference

Company HistoryGentle Giant

https://www.youtube.com/watch?v=TPkhKzwYzMg

https://www.youtube.com/watch?v=okzSiSfNzJ0

http://www.youtube.com/watch?v=TPkhKzwYzMg

http://www.youtube.com/watch?v=okzSiSfNzJ0

https://www.youtube.com/watch?v=nsNyrRL4Y2w

http://www.youtube.com/watch?v=nsNyrRL4Y2w

https://www.youtube.com/watch?v=Bk21p17P7tM

https://www.youtube.com/watch?v=MQffq4NiK1k

http://www.youtube.com/watch?v=Bk21p17P7tM

http://www.youtube.com/watch?v=MQffq4NiK1k


Use of Non-GAAP Financial MeasuresThis 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 or losses from curtailment or 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. While some of the items we exclude from GAAP financial measures recur, they tend to be disparate in amount, frequency, or timing.

We use these non-GAAP financial measures internally to evaluate trends in our underlying performance, as well as to facilitate comparison to the results of competitors for a single period.

We use the following non-GAAP financial measures in this presentation:

• Organic sales change refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation, product line exits, acquisitions and divestitures, and, where applicable, currency adjustment for transitional reporting of highly inflationary economies (Argentina) and the extra week in our fiscal year. Segment results are also adjusted for the reclassification of sales between segments. 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. We believe that organic sales change assists investors in evaluating the sales change from the ongoing activities of our businesses and enhance their ability to evaluate our results from period to period. We believe that organic sales change assists investors in evaluating the sales change from the ongoing activities of our businesses and enhance their ability to evaluate our results from period to period.

• Adjusted operating margin refers to income before taxes, interest expense, other non-operating expense, and other expense, net, 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.


Organic Sales Change by Segment

(1) Totals may not sum due to rounding and other factors.


Adjusted Operating Margin – LGM


Adjusted Operating Margin – RBIS


Adjusted Operating Margin – IHM


Contact UsHave a question or comment regarding this corporate profile?Send an email to [email protected]

Presentation current as of February 2020

mailto:[email protected]

Classification: Avery Dennison - Public 23March 2020 Avery Dennison Corporate Profile© 2019 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.

Thank you

avery dennison corporate proﬁle · anne hill svp, chro labels, rbis danny allouche vp, strategy...

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