Slide 1: 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. These forward-looking statements, and financial or other business targets, are subject to certain
Slide 2: 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. These non-GAAP financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. Reconciliations of non-GAAP f
Slide 3: Full Year Overview
Full Year Overview Met or exceeded our 2015 targets; on track to achieve long-term goals through 2018 Achieved double-digit growth in adjusted EPS for the year, above the high end of original guidance range, reflecting 4.6% organic sales growth and 120 basis points expansion in operating margin Pres
Slide 4: Substantially met or exceeded four-year targets through 2015
Substantially met or exceeded four-year targets through 2015 3% – 5% Organic Sales Growth 10% – 15% Adjusted(2) Net Income Growth $300 mil.+ Annual Free Cash Flow 15% – 20%+ Adjusted(2) EPS Growth 1.7x to 2.0x Net Debt to Adjusted(2) EBITDA 2012 – 2015 Targets(1) 4% 16% $287 mil. 20% 1.3x 2012 – 201
Slide 5: Targeting continued strong progress through 2018
Targeting continued strong progress through 2018 4% – 5% CAGR(1) Organic Sales Growth 9%–10% in 2018 Operating Margin 16%+ in 2018 (up 4+ pts vs 2013) Return on Total Capital (ROTC)(2) 12% – 15%+ CAGR(1) Adjusted(2) EPS Growth 1.7x to 2.0x Net Debt to Adjusted(2) EBITDA 2014 – 2018 Targets 4% 2 Yr C
Slide 6: PSM on track to achieve long-term targets; RBIS strategy change
PSM on track to achieve long-term targets. Strategy change in RBIS positions business to meet 2018 goals Excluding restructuring costs and other items Represents 2-year CAGR for organic sales, with 2008 as base period, and 2-year average for adjusted operating margin. Financials were not restated to
Slide 7: Fourth Quarter Overview and 2016 Outlook
Fourth Quarter Overview and 2016 Outlook Fourth quarter EPS above expectations due to higher-than-expected organic sales growth and tax benefit Sales up approx. 7% on organic basis, above expectations due to PSM volume improvement in emerging markets (particularly China) and better-than-expected sal
Slide 8: Sales Trend Analysis
4Q14 1Q15 2Q15 3Q15 4Q15 Organic Sales Change 0.5% 3.0% 3.7% 4.6% 7.1% Currency Translation (3.7)% (7.2)% (9.5)% (9.5)% (8.0)% Extra Week ~4.5% ~3.0% -- -- ~(7.5)% Product Line Divestiture -- -- (0.4)% (1.0)% (1.0)% Reported Sales Change* 1.3% (1.4)% (6.2)% (5.9)% (9.3)% Sales Trend Analysis * Total
Slide 9: Fourth Quarter Segment Sales and Margin Analysis
Fourth Quarter Segment Sales and Margin Analysis 4Q15 Reported Organic Sales Growth: Pressure-sensitive Materials (10)% 7% Retail Branding and Information Solutions (6)% 8% Vancive Medical Technologies (20)% (13)% Total Company (9)% 7% Adjusted As Reported* (Non-GAAP) 4Q15 4Q14 4Q15 4Q14 Operating M
Slide 10: Fourth Quarter Segment Overview
Fourth Quarter Segment Overview PRESSURE-SENSITIVE MATERIALS (PSM) Reported sales of $1.06 bil., down approx. 10% compared to prior year Sales up approx. 7% on organic basis Sales in both Label and Packaging Materials and combined Graphics and Performance Tapes increased mid-single digits on organic
Slide 11: Contributing Factors to 2016 Results
Contributing Factors to 2016 Results Reported net sales change of (1)% to 0.5%: Organic sales growth of 3% to 4.5% Foreign currency translation headwind of ~3.5% (~$25 mil. reduction to EBIT), assuming continuation of recent rates Product line divestiture headwind of (0.4)% (immaterial impact to EBI
Slide 12: Appendix: Reconciliation of Non-GAAP Financial Measures to GAAP
Appendix Reconciliation of Non-GAAP Financial Measures to GAAP
Slide 13: Organic Sales Change
Organic Sales Change Organic sales change refers to the increase or decrease in sales excluding the estimated impact of currency translation, product line exits, acquisitions and divestitures, and, where applicable, the extra week in a fiscal year. Totals may not sum due to rounding and other factor
Slide 14: Net Income and EPS
Net Income and EPS Certain prior period amounts have been revised to reflect the impact of adjustments made to certain of the Company's benefit plan balances and to correct the timing of previously recorded out-of-period adjustments. Reflects restructuring costs and other items, tax-effected at the
Slide 15: Adjusted Operating Margin – PSM
Adjusted Operating Margin – PSM Adjusted operating margin refers to earnings before interest expense and taxes, excluding restructuring costs and other items, as a percentage of sales. EBIT/EBITDA Margins by Segment ($ in millions) Avery Dennison 2011 2012 2013 2014 1H 2014 1H 2015 Net sales $5,844.
Slide 16: Adjusted Operating Margin – RBIS
Adjusted Operating Margin – RBIS Adjusted operating margin refers to earnings before interest expense and taxes, excluding restructuring costs and other items, as a percentage of sales. RBIS EBIT/EBITDA (2008 - 2013) ($ in millions) Retail Branding and Information Solutions 2011 2012 2013 2014 2015
Slide 17: Return on Total Capital (ROTC)
Return on Total Capital (ROTC) Certain prior period amounts have been revised to reflect the impact of adjustments made to certain of the Company's benefit plan balances and to correct the timing of previously recorded out-of-period adjustments. Interest expense, net of tax benefit excludes the effe
Slide 18: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA Certain prior period amounts have been revised to reflect the impact of adjustments made in third quarter 2015 to certain of the Company's benefit plan balances and to correct the timing of previously recorded out-of-period adjustments. Prior period amounts have been redu
Slide 19: Free Cash Flow
Free Cash Flow Prior year amounts have been reduced due to a reclassification of certain liquid short-term bank drafts with maturities greater than 90 days to other current assets. Free Cash Flow ($ in millions) 4-Yr Avg. Avery Dennison 2012 2013 2014 2015 Net cash provided by operating activities(1
Slide 20: Free Cash Flow
Free Cash Flow (Sinmilions) 4yr Avery Dennison 2012 2013 2014 2015 Avg. Net cash provided by operating activities" $ 5194 $ 3196 $ 3549 $ 4737 Purchases of property, plant and equipment $ (992) $ (1292) $ (1479) $ (1358) Purchases of software and other deferred charges $ (691) $ (622) $ (271) $ (157
Slide 21: A AVERY Inspired Brands.
A AVERY Inspired Brands. DENNISON intelligent World” wademarts of Avery Dennison Corporation. All “Company nas and afer information