Slide 1: Supplemental Presentation Materials: First Quarter 2009 Financial Review and Analysis
Supplemental Presentation Materials First Quarter 2009 Financial Review and Analysis (unaudited) April 28, 2009
Slide 2: 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. Such forward-looking statements and financial or other business targets are subject to certain ri
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation contains certain non-GAAP measures as defined by SEC rules. The most directly comparable GAAP measures have been included in the earnings news release for the quarter. Reconciliations of non-GAAP measures to the most directly comparable GAAP measu
Slide 4: Overview
April 28, 2009 First Quarter 2009 Financial Review and Analysis 4 Overview Continued deterioration in global macroeconomic environment drove first quarter volume declines across all segments and regions Declines moderated after a very weak January Operating margin contracted, as impact of lower volu
Slide 5: First Quarter Summary
April 28, 2009 First Quarter 2009 Financial Review and Analysis 5 First Quarter Summary Net sales declined 13% from prior year Net effect of DM Label acquisition was 0.6% Currency translation reduced sales growth by 6.4% (approx. $0.05 negative impact to earnings per share) Extra week added about 7%
Slide 6: First Quarter Summary (continued)
April 28, 2009 First Quarter 2009 Financial Review and Analysis 6 First Quarter Summary (continued) Accelerated and expanded efforts to reduce fixed-cost structure Now anticipate more than $150 million of annualized savings from restructuring initiated in the fourth quarter of last year, with roughl
Slide 7: Sales Analysis
April 28, 2009 First Quarter 2009 Financial Review and Analysis 7 Reported Sales Change 18.4% 20.0% 2.6% (11.8)% (13.3)% (1) Reported Sales Change (year-over-year) less the impacts of foreign currency translation, acquisitions, net of divestitures, and extra week in Q1-09 (calculation may not tie du
Slide 8: Margin Analysis
April 28, 2009 First Quarter 2009 Financial Review and Analysis 8 Gross Profit Margin (total Company) 24.2% 25.8% 25.0% Operating Margin (non-GAAP(1)): Pressure-sensitive Materials 5.9% 8.2% 5.3% Retail Information Services (3.7)% 1.3% 1.2% Office and Consumer Products 14.2% 11.3% 20.4% Other specia
Slide 9: Key Factors Impacting Margin
April 28, 2009 First Quarter 2009 Financial Review and Analysis 9 Key Factors Impacting Margin Gross profit margin declined to 24.2% Decline reflects reduced fixed-cost leverage and raw material inflation, partially offset by benefits from pricing actions and productivity Marketing, general and admi
Slide 10: 1Q09 Segment Overview: Pressure-Sensitive Materials
April 28, 2009 First Quarter 2009 Financial Review and Analysis 10 1Q09 Segment Overview PRESSURE-SENSITIVE MATERIALS Reported sales of $809 mil., down 12% compared with prior year Organic sales decline of approx. 11% Rate of change in sales (organic basis) for roll materials business, by region: Eu
Slide 11: 1Q09 Segment Overview: Retail Information Services
April 28, 2009 First Quarter 2009 Financial Review and Analysis 11 1Q09 Segment Overview (continued) RETAIL INFORMATION SERVICES Reported sales of $316 mil., down 15% compared with prior year Organic sales decline of approx. 20% Operating margin before restructuring charges and other items declined
Slide 12: 1Q09 Segment Overview: Office and Consumer Products; Other Specialty Converting
April 28, 2009 First Quarter 2009 Financial Review and Analysis 12 1Q09 Segment Overview (continued) OFFICE AND CONSUMER PRODUCTS Reported sales of $184 mil., down 5% compared with prior year Organic sales decline of approx. 7% Excluding restructuring charges and other items, operating margin improv
Slide 13: Free Cash Flow
April 28, 2009 First Quarter 2009 Financial Review and Analysis 13 ($ Millions) 2009 2008 Net cash provided by operating activities $ 16.0 $ 56.0 Purchase of property, plant and equipment $(15.7) $(38.4) Purchase of software and other deferred charges $ (8.2) $(16.5) Proceeds from sale of investment
Slide 14: Update to Contributing Factors to 2009 Financial Results
April 28, 2009 First Quarter 2009 Financial Review and Analysis 14 Update to Contributing Factors to 2009 Financial Results Currency translation (at current rates, represents approx. 7% headwind to reported sales growth; approx. $40 mil. negative impact to EBIT vs. 2008) Estimated $70 mil. of saving
Slide 15: Avery Dennison
A AVERY DENNISON