Slide 1: Second Quarter 2025 Financial Review and Analysis
Second Quarter 2025 Financial Review and Analysis (preliminary, unaudited) July 22, 2025 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. July 22, 2025 Preliminary & unaudited, Q2 2025 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, a
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: Delivered solid Q2, with EPS above midpoint, in a dynamic environment
Delivered solid Q2, with EPS above midpoint, in a dynamic environment Q2 adj. EPS (non-GAAP) of $2.42, up 5% sequentially and comparable to PY ● Outsized growth in high-value categories and productivity in the base offset more than 10 cent impact from tariffs on apparel/general retail sourcing volum
Slide 5: Second quarter 2025 financial review
Second quarter 2025 financial review Reported operating income of $286 mil. ● Adj. EBITDA margin (non-GAAP) of 16.6%, up 20 bps Net sales of $2.2 bil. ● Adj. operating margin (non-GAAP) of 12.9%, comparable to PY Organic sales change (non-GAAP) down 1.0% Strong adj. FCF (non-GAAP) of $189 mil. Return
Slide 6: Second quarter 2025 segment review
Second quarter 2025 segment review Materials Group delivered strong productivity and margins on modest volume growth ● Organic sales down 1% ○ Volume/mix up LSD, which was more than offset by deflation-related price reductions ● Strong adj. EBITDA margin of 17.8%, down 10 bps vs. PY Solutions Group r
Slide 7: Trade policy continues to evolve
Trade policy continues to evolve Mitigating direct impact from recent tariffs ● Vast majority (~90%) of global material cost is not subject to tariffs ● In Q2, implemented sourcing and pricing actions to largely mitigate LSD tariff-related cost increases Indirect impact from tariffs remains more unc
Slide 8: Quarterly sales trend analysis
Quarterly sales trend analysis 2Q24 3Q24 4Q24 1Q25 2Q25 Reported Sales Change 6.9% 4.1% 3.6% (0.1%) (0.7%) Organic Sales Change 7.1% 4.3% 3.3% 2.3% (1.0%) Acquisitions/Divestitures 0.9% 0.3% 0.2% - - Sales Change ex. Currency (Non-GAAP)(1) 8.0% 4.7% 3.5% 2.3% (1.0%) Currency Translation (1.1%) (0.6%
Slide 9: Quarterly sales trend analysis (cont.)
Quarterly sales trend analysis (cont.) Organic Sales Change 2Q24 3Q24 4Q24 1Q25 2Q25 Materials Group 5.6% 3.6% 3.7% 1.2% (1.0%) Solutions Group 10.8% 6.0% 2.6% 4.9% (0.8%) Total Company 7.1% 4.3% 3.3% 2.3% (1.0%) Total Company 8.0% 4.7% 3.5% 2.3% (1.0%) Sales Change Ex. Currency July 22, 2025 Prelim
Slide 10: Second quarter 2025 sales and margin comparisons
Second quarter 2025 sales and margin comparisons Sales Change Reported Ex. Currency Organic Materials Group 0.2% (1.0%) (1.0%) Solutions Group (2.6%) (0.8%) (0.8%) Total Company (0.7%) (1.0%) (1.0%) Reported Adjusted Adjusted Operating Margin Operating Margin EBITDA Margin 2Q25 2Q24 2Q25 2Q24 2Q25 2
Slide 11: Second Quarter 2025 Results: Materials Group
Second Quarter 2025 Results Materials Group 2024 Sales by Product Product Category Reported sales increased 0.2% to $1.6 bil. Label Materials Sales down 1.0% organically High-value Graphics & Reflectives ● High-value categories (HVC), incl. Intelligent Categories Performance Tapes & Medical Labels, u
Slide 12: Second Quarter 2025 Results: Solutions Group
Second Quarter 2025 Results Solutions Group 2024 Sales by Product Product Category Reported sales decreased 2.6% to $670 mil. Base Solutions Sales down 0.8% organically High-value Intelligent Labels (IL) ● High-value categories, incl. Intelligent Labels, up LSD Categories Vestcom ○ HVC up HSD excl.
Slide 13: Enterprise-wide Intelligent Labels
Enterprise-wide Intelligent Labels 2024 Sales by category Overall Results Apparel ● Q2 sales comparable to PY, up MSD sequentially ○ Apparel/General retail categories down MSD vs. PY General Retail ○ Other categories up mid-teens vs. PY $0.9B Food & Logistics Key End Market Insights All Other Appare
Slide 14: Q3 2025 EPS Guidance
Q3 2025 EPS Guidance Low High Reported EPS $2.14 $2.30 Est. restructuring costs and other items ~$0.10 ~$0.10 Adjusted EPS $2.24 $2.40 In Q3, anticipate adj. EPS down sequentially driven by typical volume seasonality ● Anticipate slight sales growth vs. prior year ● Macro uncertainty remains elevate
Slide 15: Appendix
Appendix September 18, 2024 Avery Dennison 2024 Investor Day 15
Slide 16: Broad exposure to diverse end markets across portfolio
Broad exposure to diverse end markets across portfolio Est. 2024 Sales by End Market General industrial, building and construction, electronics, automotive, Food, home and Industrial/ appliances/whitegoods, personal care, beer Durable architecture, corporate and beverage, wine branding and signage a
Slide 17: Diversified geographic exposure, a competitive strength
Diversified geographic exposure, a competitive strength 2024 Sales by Manufacturing Location Rest of Asia Pacific ~16% ● Vast majority of U.S.-produced sales is U.S. ~30% for domestic consumption ● Nearly all U.S./Canada/Mexico $8.8B China import/exports are USMCA compliant ~16% (including RFID inlays
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