Slide 1: Second Quarter 2024 Financial Review and Analysis
Second Quarter 2024 Financial Review and Analysis (preliminary, unaudited) July 23, 2024 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. July 23, 2024 Q2 2024 financial review and analysis, preliminary and unaudited 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 another strong quarter; Q2 adj. EPS up 26%; raising FY guidance
Delivered another strong quarter; Q2 adj. EPS up 26%; raising FY guidance Materials Group delivered strong sales growth and significant margin expansion ● Label Materials volume grew double-digits, as expected ● Margins expanded more than 2 points, driven by volume leverage and productivity Solutions
Slide 5: Second quarter 2024 review
Second quarter 2024 review Net sales of $2.2 bil. ● Sales change ex. currency (non-GAAP) up 8%; organic sales change (non-GAAP) up 7% Reported operating income of $262 mil. ● Adj. EBITDA (non-GAAP) of $367 mil., up 19% vs. PY and 5% sequentially ● Adj. EBITDA margin (non-GAAP) of 16.4%, up 170 bps R
Slide 6: Intelligent Labels: leveraging market-leading position to accelerate new category adoptions
Intelligent Labels ‒ leveraging our market-leading position to accelerate new category adoptions with significant growth opportunities ~$850M ● Industry-leading position 18% ○ Global scale, proprietary technology, Organic Sales CAGR innovation and go-to-market team ● Helping solve complex industry ch
Slide 7: Quarterly sales trend analysis
Quarterly sales trend analysis 2Q23 3Q23 4Q23 1Q24 2Q24 Reported Sales Change (11%) (9%) 4% 4% 7% Organic Sales Change(1) (10%) (11%) 1% 3% 7% Acquisitions/Divestitures 1% 1% 1% 1% 1% Sales Change Ex. Currency(1)(2) (10%) (10%) 3% 4% 8% Currency Translation (1%) 1% 2% 0% (1%) Reported Sales Change(2
Slide 8: Quarterly sales trend analysis (cont.)
Quarterly sales trend analysis (cont.) Organic Sales Change 2Q23 3Q23 4Q23 1Q24 2Q24 Materials Group (12%) (16%) (4%) 2% 6% Solutions Group (7%) 1% 14% 6% 11% Total Company (10%) (11%) 1% 3% 7% Total Company (10%) (10%) 3% 4% 8% Sales Change Ex. Currency July 23, 2024 Q2 2024 financial review and ana
Slide 9: Q2 sales and margin comparisons
Q2 sales and margin comparisons Q2 Sales Change Reported Ex. Currency Organic Materials Group 5% 6% 6% Solutions Group 12% 14% 11% Total Company 7% 8% 7% Reported Adj. EBITDA Margin Operating Margin (non-GAAP) 2Q24 2Q23 2Q24 2Q23 Materials Group 14.4% 13.1% 17.9% 15.7% Solutions Group 9.3% (1.2%) 16
Slide 10: Second Quarter 2024 Results: Materials Group
Second Quarter 2024 Results AVY ‘23 Sales by Segment Materials Group Materials Group Reported sales increased 5% to $1.5 bil. 69% Solutions Group Sales up 6% ex. currency and organically ● Label Materials up mid-to-high single-digits on organic basis Materials Group Product Category ○ Volume/mix up
Slide 11: Second Quarter 2024 Results: Solutions Group
Second Quarter 2024 Results AVY ‘23 Sales by Segment Solutions Group Materials Group Reported sales increased 12% to $689 mil. 31% Solutions Group Sales up 14% ex. currency and 11% organically ● Solutions high-value categories up low double-digits ex. currency Solutions Group Product Category ● Solu
Slide 12: 2024 EPS Guidance
2024 EPS Guidance Previous Updated Reported EPS $8.60 - $9.10 $8.75 - $8.95 Add Back: Est. restructuring costs and other items, ~$0.40 ~$0.55 including impact of venture investments Adjusted EPS $9.00 - $9.50 $9.30 - $9.50 Full-year 2024 contributing factors ● Reported sales growth of 4.5% to 5.5% (
Slide 13: July Q2 financial
©July 2024 23, 2024 Avery Q2 Dennison Corporation. All rights reserved. Avery Dennison and2024 financial all other review Avery Dennison andproduct brands, analysis, namespreliminary and unaudited and codes are trademarks of Avery Dennison Corporation. All other brands or product names are trademarks