Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Shareholder Meeting (March 2020)
16 slides from Avery Dennison's shareholder meeting presentation, Mar 30, 2020
Slide 1: 2020 In-Season Stockholder Engagement Spring 2020
1 | Off - Season Stockholder Engagement Spring 2020 2020 In - Season Stockholder Engagement Spring 2020
Slide 2: Company Overview
2 | Off - Season Stockholder Engagement Spring 2020 Company Overview We are a global materials science and manufacturing company specializing in the design and manufacture of a wide variety of labeling and functional materials • Global scale: 180+ operating locations • Broad exposure to large, growi
Slide 3: Our Strategies Create Value for All Our Stakeholders
3 | Off - Season Stockholder Engagement Spring 2020 Net Cash Provided by Operating Activities Free Cash Flow (In millions) $645.7 $457.9 $746.5 $421.7 $429.2 $512.3 2017 2018 2019 2017 2018 2019 Our Strategies Create Value for All Our Stakeholders Our core strategies drive superior long - term, sust
Slide 4: Disciplined Capital Allocation and Strong Stockholder Value Creation
4 | Off - Season Stockholder Engagement Spring 2020 0% 40% 80% 120% 160% 200% 2014 2015 2016 2017 2018 2019 Capital Allocation • Over the last five years, we have allocated over $2 billion to dividends and share repurchases • We have also invested in our businesses to support organic growth and acqu
Slide 5: Progress Towards Achieving Long-Term Financial Targets
5 | Off - Season Stockholder Engagement Spring 2020 Progress Towards Achieving Long - Term Financial Targets Our long - term financial targets aim to balance strong top - line growth with margin expansion to maintain our focus on delivering top - quartile returns ON TRACK TO DELIVER LONG - TERM FINA
Slide 6: Engagement Informs Strong Governance and Compensation Practices
6 | Off - Season Stockholder Engagement Spring 2020 Engagement Informs Strong Governance and Compensation Practices Governance x Annual election of directors x Majority voting in director elections x Single class of outstanding voting stock x Market - standard proxy access No supermajority voting re
Slide 7: Our Director Nominees Have Experience that Aligns with Our Strategies
7 | Off - Season Stockholder Engagement Spring 2020 x 90% director nominees are independent x Three new directors in the last five years x Longstanding commitment to ongoing stockholder engagement x Thoughtful Board evaluation and refreshment practices Our Director Nominees Have Experience that Alig
Slide 8: Matrix of Director Nominee Skills, Qualifications and Backgrounds
8 | Off - Season Stockholder Engagement Spring 2020 Matrix of Director Nominee Skills, Qualifications and Backgrounds Our director nominees have the skills and qualifications to best advance our business strategies and serve the interests of our customers , investors, employees and communities GOVER
Slide 9: 2019 CEO Compensation and Change in Approach for 2020
9 | Off - Season Stockholder Engagement Spring 2020 2019 CEO Compensation and Change in Approach for 2020 (1) Relative TSR compares our TSR to the TSR of companies in a peer group satisfying objective criteria for industry classification and revenue size, the names of which are disclosed on page 56
Slide 10: Sustainability as a Competitive Advantage
10 | Off - Season Stockholder Engagement Spring 2020 Sustainability as a Competitive Advantage Sustainability is one of our core values and has long been an integral part of how we do business. In 2015, we announced our sustainability goals we aim to achieve by 2025. Progress towards achieving our 2
Slide 11: Appendix
11 | Off - Season Stockholder Engagement Spring 2020 Appendix
Slide 12: Use of Non-GAAP Financial Measures
12 | Off - Season Stockholder Engagement Spring 2020 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 Ame
Slide 13: Reconciliation of Non-GAAP Financial Measures from GAAP
13 | Off - Season Stockholder Engagement Spring 2020 Reconciliation of Non - GAAP Financial Measures from GAAP (1) Totals may not sum due to rounding and other factors ORGANIC SALES CHANGE BY SEGMENT ( $ in millions) Label and Graphic Materials 2018 2019 Net sales $4,851.1 $4,745.9 Reported sales ch
Slide 14: Reconciliation of Non-GAAP Financial Measures: Adjusted EPS
14 | Off - Season Stockholder Engagement Spring 2020 Reconciliation of Non - GAAP Financial Measures from GAAP ADJUSTED EARNINGS PER SHARE (EPS) The adjusted tax rate was 28.0%, 25.0% and 24.6% for 2017, 2018 and 2019, respectively. ( 1) Reflects five - year compound annual growth rate, with 2014 as
Slide 15: Reconciliation of Non-GAAP Financial Measures: Return on Total Capital
15 | Off - Season Stockholder Engagement Spring 2020 Reconciliation of Non - GAAP Financial Measures from GAAP RETURN ON TOTAL CAPITAL (ROTC) ( 1 ) Interest expense, net of tax benefit for 2019 , based on our GAAP tax rate of ( 22 . 7 ) % , is not meaningful . Applying the adjusted tax rate of 24 .
Slide 16: © Avery Dennison Corporation. All rights reserved. Avery Dennison and all other Avery brands,
16 | Off - Season Stockholder Engagement Spring 2020 © 20 1 1 Avery Dennison Corporation. All rights reserved. Avery Dennison and all other Avery brands, product names and codes are trademarks of Avery Dennison Corporation. All other brands and product names are trademarks of their respective owners