Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Proxy Contest (March 2019)
16 slides from Avery Dennison's proxy contest presentation, Mar 29, 2019
Slide 1: Company Overview
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 Materials science capabilities focused on pressure-sensitive adhesives Innovative proc
Slide 2: Creating Superior Long-Term Value
Creating Superior Long-Term Value Drive outsized growth in high value product categories with higher growth and margin potential (e.g., specialty labels, graphics, industrial tapes and radio-frequency identification) Grow profitably in our base business through tailored go-to-market strategies and d
Slide 3: Capital Allocation
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 future growth and productivity improvement (including $256.6 million in capital expenditures in 2018) and made five acquisitions and eq
Slide 4: Delivering on Long-Term Financial Targets
Delivering on Long-Term Financial Targets Our long-term growth targets aim to balance strong top-line growth with margin expansion to deliver top-quartile returns 2021 Financial Targets On track to deliver 2018 Financial Targets Achieved or Exceeded Organic Sales Growth GAAP Operating Margin Return
Slide 5: Sustainability is a Core Value of Our Company
Sustainability is a Core Value of Our Company We approach sustainability with intense focus, industry-leading innovation, and an emphasis on measurable progress. In 2015, we announced the sustainability goals we aim to achieve by 2025. Progress toward achieving our 2025 sustainability goals: RESPONS
Slide 6: Our Director Nominees Reflect Diverse Skills and Backgrounds
Our Director Nominees Reflect Diverse Skills and Backgrounds Our director nominees possess the diverse skills and experience necessary to guide our strategy and ensure our long-term success Mitchell Butier Chairman-Elect, President & CEO, Avery Dennison David Pyott Retired Chairman & CEO, Allergan M
Slide 7: Engagement Informs Strong Governance and Compensation Profiles
Engagement Informs Strong Governance and Compensation Profiles Governance Annual election of directors Majority voting in director elections Single class of outstanding voting stock Market-standard proxy access No supermajority voting requirements No poison pill No exclusive forum or fee shifting by
Slide 8: CEO Compensation Overview
CEO Compensation Overview 50% Base Salary Targeted at market median Annual Incentive Award Plan 100% based on financial performance; for corporate NEOs: 60% Adjusted EPS 20% Adjusted Sales Growth 20% Free Cash Flow Individual Performance Modifier based on achievement against predetermined and object
Slide 9: CEO Compensation Overview
CEO Compensation Overview Base Salary * Teaetedat market median * 100% based on financial performance; for corporate NEOs: + 60% Adjusted EPS Annual + 20% Adjusted Sales Growth Incentive + 20% Free Cash Flow ESS EGCUIE | - Individual Performance Modifier based on achievement against predetermined an
Slide 10: Non-GAAP financial measures notice
Reconciliation of Non-GAAP Financial Measures from GAAP 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 w
Slide 11: Organic Sales Change by Segment
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 2017 2018 Net sales $4,511.7 $4,851.1 Reported sales change 7.7% 7.5% Foreign currency translation (0.8)% (1.9)
Slide 12: Organic Sales Change
Reconciliation of Non-GAAP Financial Measures from GAAP ORGANIC SALES CHANGE (1) Reflects five-year compound annual growth rates, with 2013 as the base period. (2) Reflects two-year compound annual growth rates, with 2016 as the base period. (3) Totals may not sum due to rounding and other factors.
Slide 13: Adjusted Earnings Per Share (EPS)
Reconciliation of Non-GAAP Financial Measures from GAAP ADJUSTED EARNINGS PER SHARE (EPS) The adjusted tax rate was 28% and 25% for 2017 and 2018, respectively. (1) Reflects five-year compound annual growth rates, with 2013 as the base period. (2) Reflects two-year compound annual growth rates, with
Slide 14: Free Cash Flow and Return on Total Capital
Reconciliation of Non-GAAP Financial Measures from GAAP FREE CASH FLOW ($ in millions) 2017 2018 Net income $281.8 $467.4 Interest expense, net of tax benefit 30.1 49.5 Effective tax rate 52.2% 15.4% Income from operations, excluding expense and tax benefit of debt financing (non-GAAP) 311.9 516.9 T
Slide 15: Free Cash Flow
Reconciliation of Non-GAAP Financial Measures from GAAP FREE CASH FLOW (St mtions) 2016 2017 2018 Net cash provided by operating activities $582.1 $645.7 $457.9 Purchases of propery, plant and equipme (176.9) (190.5) (226.7) Purchases of software and other deferred charges (29.7) 356) (29.9) Proceed
Slide 16: Avery Dennison Proxy Season Stockholder Engagement Spring 2019
AVERY DENNISON 16 | Proxy Season Stockholder Engagement ‘Spring 2019 Br255%.0n