Download - Avery Dennison Corporate Profile 2021

Classification: Avery Dennison - Public 12021 Avery Dennison Corporate Profile

Avery Dennison Corporate Profile2021


Presentation OverviewOur StoryWho We AreOur BusinessesOur Competitive AdvantagesOur ValuesOur 2030 Sustainability GoalsCreating 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 86 years, we have grown from one bright idea into a global Fortune 500® corporation that continues to advance quality and innovation in materials science.

3


Who We Are

Avery Dennison is a global materials manufacturer of branding and information labeling solutions and functional materials for consumer goods, apparel, food, logistics, industrial and healthcare industries.

Number of employees worldwide

More than 32,000

Fortune rank as of the end of 2020

435

Operations in more than

50 countries

Sales in 2020

$7 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. $1.6 bil. $626 mil.

2020 SALES


2020 Sales by Product

Base (Label & Graphics)

Specialty/Durables Labels

Specialty Graphics

Reflectives

2020 Sales by Geography

U.S. & Canada

Western Europe

E. Europe & MENA

Asia Pacific

Latin America

High-valueCategories

~32%

EmergingMarkets

~40% Revenue $4.7 bil.

Sales Change Ex. Currency 5-YR CAGR 4.0%

Adj. EBITDA Margin 17.3%

End

Mar

ket

Prod

uct C

ateg

ory

2020 Financial Snapshot

Label and Graphic Materials



U.S. & Canada

Europe

Asia Pacific

Latin America


Base Tags & Labels

Intelligent Labels/RFID

Ext. Embellishments

AIDC(1) Solutions

Sales $1.6 bil.

Sales Change Ex. Currency5-YR CAGR 3.3%




~37%

Estim

ated

End

Mar

ket

Prod

uct C

ateg

ory

(1) Automatic Identification and Data Capture (“AIDC”)

Retail Branding andInformation Solutions



Automotive

Other Industrial

Healthcare

Retail


U.S. & Canada

Europe

Asia Pacific

Latin America


~74%

Revenue $626 mil.

Sales Change Ex. Currency 5-YR CAGR 5.4%



Estim

ated

End

Mar

ket

Prod

uct C

ateg

ory

Industrial andHealthcare Materials


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● Industry-leading innovations enabling

functionality and sustainability

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 inclusive 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.


Deliver innovations that advance the circular

economy

Reduce our environmental impact in operations and

supply chain

Make a positive social impact by enhancing the livelihood of our people and communities

Our 2030 sustainability goals were developed based on careful analysis of what is most important for our business and stakeholders, and they include the areas where we can make the greatest difference. We are working toward a deforestation-free future and measuring against Scope 3 standards for GHG emissions, with an ambition of net zero by 2050.

To learn more, visit averydennison.com/sustainability.

2030 Sustainability Goals

https://www.google.com/url?q=http://www.esg.averydennison.com&sa=D&source=editors&ust=1619641004600000&usg=AFQjCNH2E0RxJPTBaIdzQi1sSsiEHHGGDg


Making a Material Difference

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. We’re also sharpening our focus on racial/ethnic workforce diversity, particularly in the U.S


Employees Customers Communities Shareholders

173%

103%

AVY

S&P 500

Employee Engagement

Women Manager+

Vitality Index

Service Flexibility

Cum. GHG% Reduction

% Certified Paper

Creating Value For All Our Stakeholders

• Engage and develop our people

• Foster a safe, diverse and inclusive workplace

• Deliver industry leading service, quality, and innovation

• Reduce greenhouse gas emissions

• Responsibly source paper, films, and chemicals

• Eliminate waste

• Deliver superior total shareholder return

• Strong corporate governance

Cumulative TSR(5-year)

82%+

Scop

e 1

& 2


Appendix


Mitch ButierChairman, President & CEO

Deon StanderVP/GM, RBIS

Danny AlloucheVP, Strategy & Corporate Development

Nick ColistoVP, CIO

Francisco MeloVP/GM, Avery Dennison Smartrac, RBIS

Hassan RmaileVP/GM, LGM EMENA

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

Deena Baker-NelVP, CHRO

Ignacio WalkerVP, Chief Legal Officer


Company Videos

Company VisionAvery Dennison Vision Video >

Our ValuesEight Values. One Team >

SustainabilityA Force For Good >

Careers VideoYou Make the Difference >

SustainabilityTowards a More Sustainable Future >

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=rBtfAn3Y02A

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

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

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

http://www.youtube.com/watch?v=rBtfAn3Y02A


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 the 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 assessments 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 strategic 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, positive or negative, of certain items (e.g., restructuring charges, outcome of certain legal proceedings, 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, gains or losses on investments, 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 and full year, as applicable.

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

• Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation, and, where applicable, an extra week in our fiscal year, currency adjustment for transitional reporting of highly inflationary economies, and 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 sales change ex. currency 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 EBITDA margin refers to income before taxes; interest expense; other non-operating expense (income), net; other expense (income), net; and depreciation and amortization, as a percentage of net sales.

We believe that adjusted EBITDA margin assists investors in understanding our core operating trends and comparing our results with those of our competitors.


Sales Change Ex. Currency by Segment

(1) Totals may not sum due to rounding


Adjusted EBITDA Margin — LGM

($ in millions) 2020Net sales $ 4,715.1Operating income before interest expense, other non-operating expense (income), and taxes, as reported $ 688.8Operating margin, as reported 14.6%

Non-GAAP adjustments:Restructuring charges: Severance and related costs $ 27.0 Asset impairment and lease cancellation charges $ 0.9Other items $ (5.7)

Adjusted operating income (non-GAAP) $ 711.0

Depreciation & Amortization $ 107.0Adjusted EBITDA (non-GAAP) $ 818.0Adjusted EBITDA margin (non-GAAP) 17.3%


Adjusted EBITDA Margin — RBIS

($ in millions) 2020Net sales $ 1,630.9 Operating income before interest expense, other non-operating expense (income), and taxes, as reported $ 144.7 Operating margin, as reported 8.9%

Non-GAAP adjustments:Restructuring charges: Severance and related costs $ 17.1 Asset impairment and lease cancellation charges $ 1.6 Other items $ 4.0


Depreciation & Amortization $ 71.6 Adjusted EBITDA (non-GAAP) $ 239.0 Adjusted EBITDA margin (non-GAAP) 14.7%


Adjusted EBITDA Margin — IHM

($ in millions) 2020Net sales $ 625.5 Operating income before interest expense, other non-operating expense (income), and taxes, as reported $ 58.2 Operating margin, as reported 9.3%

Non-GAAP adjustments:Restructuring charges: Severance and related costs $ 4.7 Asset impairment and lease cancellation charges $ 3.7


Depreciation & Amortization $ 26.7 Adjusted EBITDA (non-GAAP) $ 93.3 Adjusted EBITDA margin (non-GAAP) 14.9%

Classification: Avery Dennison - Public 222021 Avery Dennison Corporate Profile© 2021 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.

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Presentation updated April 2021

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