Slide 1: Second Quarter 2021 Financial Review and Analysis
Exhibit 99.2 Second Quarter 2021 Financial Review and Analysis (preliminary, unaudited) July 28, 2021 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. July 28, 2021 Second Quarter 2021 Financial Review and Analysis 1Exhibit 99.2 Se
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, ar
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 c
Slide 4: Second Quarter 2021 Review
Second Quarter 2021 Review Strong results across portfolio amidst dynamic environment; raising outlook for 2021 Announced agreement to acquire Vestcom, a high growth, high margin business for $1.45 billion Reported sales increased 38% ● Sales growth ex. currency (non-GAAP) of 29%; organic sales grow
Slide 5: Operational/Market Update
Operational/Market Update Parts of the world are experiencing a resurgence in COVID-19 cases ● Greatest near-term challenge in certain RBIS locations in Asia Safety and well-being of employees remains our top priority ● World-class safety protocols implemented; continue to adapt as pandemic evolves
Slide 6: Quarterly Sales Trend Analysis
Quarterly Sales Trend Analysis 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Reported Sales Change (1.0%) (14.9%) (1.8%) 12.3% 19.1% 37.5% Organic Sales Change 0.3% (13.7%) (3.6%) 3.2% 8.8% 28.1% Acquisitions/Divestitures 0.7% 1.7% 2.3% 2.0% 2.1% 1.1% Sales Change Ex. Currency* 1.0% (12.0%) (1.3%) 5.2% 10.9% 29.2%
Slide 7: Quarterly Sales Trend Analysis (cont.)
Quarterly Sales Trend Analysis (cont.) Organic Sales Change 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 LGM 2% (5%) (3%) 4% 8% 16% LPM 3% 0% (2%) 5% 7% 12% Graphics & Reflective (5%) (31%) (8%) (5%) 9% 49% RBIS* (1%) (36%) (5%) 3% 9% 72% IHM (8%) (21%) (8%) 1% 16% 33% Total Company 0% (14%) (4%) 3% 9% 28% Total C
Slide 8: Second Quarter Sales Growth and Operating Margin Comparison
Second Quarter Sales Growth and Operating Margin Comparison Second Quarter Sales Growth Ex. Currency Ex. Currency Organic Organic Reported (‘21 vs. ‘20) (‘21 vs. ‘19) (‘21 vs. ‘20) (‘21 vs. ‘19) Label and Graphic Materials 24.9%16.8%11.0%16.1%10.7% Retail Branding and Information Solutions 79.5%72.5
Slide 9: Second Quarter 2021 Results: Label and Graphic Materials
Second Quarter 2021 Results Label and Graphic Materials 2020 Sales by Product Reported sales increased 25% to $1.4 bil. Base (Label & Graphics) High Value Sales were up 17% ex. currency and 16% organically Specialty/Durables Labels Categories ● Label and Packaging Materials up 12% organically, with
Slide 10: Second Quarter 2021 Results: Retail Branding and Information Solutions
Second Quarter 2021 Results Retail Branding and Information Solutions 2020 Sales by Product Reported sales increased 80% to $529 mil. Base Tags & Labels High Value Sales were up 73% ex. currency and 72% organically Intelligent Labels Categories ● Strong growth in both the high value product categori
Slide 11: Second Quarter 2021 Results: Industrial and Healthcare Materials
Second Quarter 2021 Results Industrial and Healthcare Materials 2020 Sales by Product Reported sales increased 49% to $197 mil. Automotive Sales were up 39% ex. currency and 33% organically High Value Other Industrial Categories ● Industrial categories up ~60%, driven largely by strength in Healthca
Slide 12: 2021 EPS Guidance
2021 EPS Guidance Previous Updated Reported EPS $8.25 – $8.65 $8.50 – $8.80 Add Back: Est. restructuring costs and other items ~$0.15 ~$0.15 Adjusted EPS (non-GAAP) $8.40 – $8.80 $8.65 – $8.95 Contributing Factors to 2021 Results ● Reported sales growth of 16% to 18%; ~3.5% currency tailwind; ~1.5%
Slide 13: Vestcom Acquisition Overview
Vestcom Acquisition Overview July 28, 2021 Second Quarter 2021 Financial Review and Analysis 13
Slide 14: Vestcom builds on RBIS pricing and data management capabilities
Vestcom builds on RBIS pricing and data management capabilities and expands presence in high value categories ● Highly synergistic adjacency to RBIS ○ Expands RBIS’ role in processing/managing variable data in adjacent markets ● Accelerates AVY portfolio shift to high value categories ● Strong track
Slide 15: Shelf-Edge Vestcom Overview
Shelf-Edge Vestcom Overview Intro video Solutions ● Price Communication ● Planogram Compliance Market-leading provider of pricing and branded labeling ● Branded Content solutions for the retail shelf-edge, powered by advanced ● Promotional Campaigns data management capabilities ● Proven, consistent,
Slide 16: Vestcom enables optimized execution & consumer engagement at the shelf-edge
Vestcom enables optimized execution & consumer engagement at the shelf-edge SOLUTIONS FOR RETAILERS AND SOLUTIONS FOR RETAILERS BRANDS stackz® shelfStrips® adSigns® shelfAdz® Overview Overview Joint marketing vehicle for Self-adhering labels come pre-cut Signage across the store delivered in Display
Slide 17: Transaction Summary
Transaction Summary ● AVY to acquire Vestcom, the industry-leading provider of shelf-edge solutions ● Based in Little Rock, Arkansas with ~1200 employees Business ● ~$400 million 2021E revenue business within RBIS segment (vast majority in U.S.) ● Purchase price $1.45 billion; cash transaction, subj
Slide 18: Thank you
Thank you July 28, 2021 Second Quarter 2021 Financial Review and Analysis 13 © 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