Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Q3 2021 Earnings Presentation
13 slides from Avery Dennison's earnings presentation, Oct 27, 2021
Slide 1: Third Quarter 2021 Financial Review and Analysis
Third Quarter 2021 Financial Review and Analysis (preliminary, unaudited) October 27, 2021 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. Exhibit 99.2
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,
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: Review
Third Quarter 2021 Review Continued to deliver strong results amidst dynamic supply environment Vestcom acquisition closed in Q3; modest EPS accretion expected for FY21 Reported sales increased 20% Sales growth ex. currency (non-GAAP) of 17%; organic sales growth (non-GAAP) of 14% Compared to 2019,
Slide 5: Operational/Market Update
Operational/Market Update As pandemic evolves, continue to adapt world-class safety protocols Safety and well-being of employees remains our top priority Parts of the world, particularly South Asia, experienced a surge in COVID-19 cases in Q3 RBIS Vietnam in particular was significantly constrained
Slide 6: Quarterly Sales Trend Analysis
Quarterly Sales Trend Analysis 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Reported Sales Change (1.0%) (14.9%) (1.8%) 12.3% 19.1% 37.5% 19.8% Organic Sales Change 0.3% (13.7%) (3.6%) 3.2% 8.8% 28.1% 13.9% Acquisitions/Divestitures 0.7% 1.7% 2.3% 2.0% 2.1% 1.1% 3.0% Sales Change Ex. Currency* 1.0% (12.0%) (1
Slide 7: Quarterly Sales Trend Analysis (cont.)
Organic Sales Change 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 LGM 2% (5%) (3%) 4% 8% 16% 14% LPM 3% 0% (2%) 5% 7% 12% 15% Graphics & Reflective (5%) (31%) (8%) (5%) 9% 49% 11% RBIS* (1%) (36%) (5%) 3% 9% 72% 14% IHM (8%) (21%) (8%) 1% 16% 33% 15% Total Company 0% (14%) (4%) 3% 9% 28% 14% Total Company Sal
Slide 8: Third Quarter Sales Growth and Operating Margin Comparison
Third Quarter Sales Growth and Operating Margin Comparison Operating Margin Reported Operating Margin Adj. (Non-GAAP) EBITDA Margin Adj. (Non-GAAP) 3Q21 3Q20 3Q19 3Q21 3Q20 3Q19 3Q21 3Q20 3Q19 Label and Graphic Materials 13.7% 15.1% 13.4% 13.8% 15.2% 13.5% 15.9% 17.5% 15.6% Retail Branding and Infor
Slide 9: Label and Graphic Materials
Label and Graphic Materials Reported sales increased 18% to $1.3 bil. Sales were up 15% ex. currency (up 12% vs. 2019) and 14% organically (up 11% vs. 2019) Label and Packaging Materials up ~15% organically, with strong growth in both the high value product categories and the base business Combined
Slide 10: Retail Branding and Information Solutions
Retail Branding and Information Solutions Reported sales increased 25% to $531 mil. Sales were up 22% ex. currency (up 29% vs. 2019) and 14% organically (up 9% vs. 2019) Strong growth in both the high value product categories and the base business Intelligent Labels up ~15% organically (up ~40% vs.
Slide 11: Industrial and Healthcare Materials
Industrial and Healthcare Materials Reported sales increased 24% to $195 mil. Sales were up 20% ex. currency (up 11% vs. 2019) and 15% organically (up 6% vs. 2019) Industrial categories up high-teens Healthcare up high-single digits Reported operating margin increased 170 bps to 9.6% Adjusted operat
Slide 12: 2021 EPS Guidance
2021 EPS Guidance Add Back: Est. restructuring costs and other items Adjusted EPS (non-GAAP) Reported EPS $8.55 – $8.70 $8.80 – $8.95 Contributing Factors to 2021 Results Reported sales growth of ~20%; ~3.5% currency tailwind; ~1.5% extra week impact headwind Ex. currency growth of ~18% (previously
Slide 13: Thank you
Thank you IN AVERY DENNISON