Slide 1: First Quarter 2022 Financial Review and Analysis
Exhibit 99.2 First Quarter 2022 Financial Review and Analysis (preliminary, unaudited) April 26, 2022 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. April 26, 2022 First Quarter 2022 Financial Review and Analysis 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 targets, are
Slide 3: 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 4: Continuing to deliver strong results
Continuing to deliver strong results Q1 revenue up 18% on a constant currency basis and 13% organically ● LGM revenue up significantly, driven by pricing ○ Volume/mix strong, though modestly down as expected ● RBIS revenue up significantly, with strong growth in all divisions Intelligent Labels contin
Slide 5: First Quarter 2022 Results
First Quarter 2022 Results Reported sales of $2.35 billion, up 14.5% ● Sales change ex. currency (non-GAAP) of 18.0% ● Organic sales change (non-GAAP) of 12.7% Reported operating income of $288 mil. ● Adjusted EBITDA of $358 mil., up ~10% excluding currency ● Adj. EBITDA margin (non-GAAP) of 15.3%,
Slide 6: YTD '22 Intelligent Labels up 20%+
YTD ‘22 Intelligent Labels up 20%+ 2021 Sales by End Market Apparel $0.7B ~20% Non-Apparel Org. Sales $0.7B 5-YR CAGR $0.2B Pipeline by End Market ● Industry leading position; 50%+ UHF RFID segment share Apparel ● Targeting 15–20% long-term top-line organic growth Food ● Clear innovation leader Logi
Slide 7: Quarterly Sales Trend Analysis
Quarterly Sales Trend Analysis 1Q21 2Q21 3Q21 4Q21 1Q22 Reported Sales Change 19.1% 37.5% 19.8% 9.7% 14.5% Organic Sales Change 8.8% 28.1% 13.9% 12.8% 12.7% Acquisitions/Divestitures 2.1% 1.1% 3.0% 5.7% 5.3% Sales Change Ex. Currency* 10.9% 29.2% 17.0% 18.5% 18.0% Extra Week Impact 3.8% - - (8.5%) -
Slide 8: Quarterly Sales Trend Analysis (cont.)
Quarterly Sales Trend Analysis (cont.) Organic Sales Change 1Q21 2Q21 3Q21 4Q21 1Q22 LGM 8% 16% 14% 11% 12% RBIS 9% 72% 14% 20% 20% IHM 16% 33% 15% 10% 1% Total Company 9% 28% 14% 13% 13% Total Company 11% 29% 17% 19% 18% Sales Change Ex. Currency April 26, 2022 First Quarter 2022 Financial Review a
Slide 9: First Quarter Sales Growth and Operating Margin Comparison
First Quarter Sales Growth and Operating Margin Comparison First Quarter Sales Growth Reported Ex. Currency Organic Label and Graphic Materials 7.5% 11.5% 11.8% Retail Branding and Information Solutions 40.7% 42.8% 20.0% Industrial and Healthcare Materials (0.8%) 1.2% 0.5% Total Company 14.5% 18.0%
Slide 10: First Quarter 2022 Results: Label and Graphic Materials
First Quarter 2022 Results Label and Graphic Materials 2021 Sales by Product Reported sales increased 8% to $1.5 bil. Base (Label & Graphics) High Value Sales up 12% ex. currency and 12% organically Specialty/Durables Labels Categories ● Label and Packaging Materials up low-double digits on organic
Slide 11: First Quarter 2022 Results: Retail Branding and Information Solutions
First Quarter 2022 Results Retail Branding and Information Solutions (1) 2021 Sales by Product Reported sales increased 41% to $679 mil. Base Tags & Labels Sales up 43% ex. currency and 20% organically High Value Intelligent Labels Categories ● Strong growth in both high value categories and base bu
Slide 12: First Quarter 2022 Results: Industrial and Healthcare Materials
First Quarter 2022 Results Industrial and Healthcare Materials 2021 Sales by Product Reported sales decreased 1% to $190 mil. Automotive Sales up 1% ex. currency and 1% organically High Value Other Industrial Categories ● Industrial categories down low-single digits on an organic Healthcare basis, d
Slide 13: Track record of consistent results; on track to deliver in 2022
Track record of consistent results; once again on track to deliver in 2022 Revenue 2022 EPS Guidance Previous Updated ($ billion) $9.5-$9.7 Reported EPS $9.25 – $9.65 $9.35 – $9.75 Add Back: Est. restructuring costs and other items ~$0.10 ~$0.10 Adjusted EPS (non-GAAP) $9.35 – $9.75 $9.45 – $9.85 Co
Slide 14: Appendix: Supplemental Non-GAAP Reconciliations
Appendix: Supplemental Non-GAAP Reconciliations April 26, 2022 First Quarter 2022 Financial Review and Analysis 14
Slide 15: Adjusted EPS
Adjusted EPS The adjusted tax rate was 25%, 24.1%, and 24.6% for 2021, 2020, and 2019, respectively. (1) Includes restructuring and related charges, transaction and related costs, gain/loss on venture investments, gain/loss on sale of assets, gain on sale of product line, outcomes of legal proceedin
Slide 16: Adjusted EPS and EBITDA, ex. currency
Adjusted EPS and EBITDA, ex. currency April 26, 2022 First Quarter 2022 Financial Review and Analysis 16
Slide 17: Thank you
Thank you April 26, 2022 First Quarter 2022 Financial Review and Analysis 17 © 2020 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 tradema