Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Shareholder Meeting (March 2023)
18 slides from Avery Dennison's shareholder meeting presentation, Mar 24, 2023
Slide 1: Proxy Season Stockholder Engagement Spring 2023
Proxy Season Stockholder Engagement Spring 2023
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: Our Company at a Glance
Materials Group $6.5B 2022 Net sales (former LGM and IHM)(2) Solutions Group $2.5B 2022 Net sales (former RBIS)(2) Pressure-sensitive materials Label materials (LPM) Graphic and reflective materials Functional materials (e.g., tapes(3)) RFID solutions Branded tag and embellishment solutions Data man
Slide 4: Sustainable Value Creation through Consistent Execution of Key Strategies
Net Cash Provided by Operating Activities Free Cash Flow* Reported EPS Adjusted EPS* Net Sales Sales Change Ex. Currency* Drive outsized growth in high-value categories Focus relentlessly on productivity Effectively allocate capital Grow profitably in our base businesses Sustainable Value Creation t
Slide 5: Disciplined Capital Allocation Driving Long-Term Stockholder Value
Disciplined Capital Allocation Driving Long-Term Stockholder Value Capital Allocation We have acquired companies that expand our capabilities in high-value product categories, increase our pace of innovation and advance our sustainability initiatives; in 2022, we acquired TexTrace and Rietveld In 20
Slide 6: 2025 Goals and 2022 Results
2025 Goals 2022 Results 70% of revenues from sustainability-driven products Material Group (LGM only): ~63% Solutions Group (Apparel Solutions only): ~62% 3% absolute GHG reduction every year (26% cumulative by 2025)(1) ~54% cumulative(2) 100% certified paper 70% Forest Stewardship Council (FSC)-cer
Slide 7: Balanced Board Composition Drives Robust Independent Oversight
Board Demographics* Lead Independent Director; primary responsibilities: Preside over executive sessions of independent directors and Board meetings where Chairman/CEO is not present Approve Board meeting agendas, schedules and other information sent to our Board Call meetings of independent directo
Slide 8: Matrix of Director Skills and Qualifications
* Information as of March 2023. (1) Governance Guidelines criteria defined on page 14 of 2023 Proxy Statement. Matrix of Director Skills and Qualifications* Our Board’s director succession planning is designed to ensure an independent, well-qualified Board, with diversity in skills, qualifications a
Slide 9: Matrix of Director Demographic Backgrounds
* Information as of March 2023. Matrix of Director Demographic Backgrounds* Our Board recognizes the benefits of diversity in the boardroom, including the healthy debate that results from different viewpoints that may stem from diverse backgrounds Lopez A. Anderson B. Alford F. Reverberi J. Stewart
Slide 10: 2022 CEO Compensation Overview
Annual Long-Term 88% Performance-Based 100% Financial Performance 50% Relative TSR(1) 50% Cumulative EVA(2) Three-year cliff vesting Relative TSR payout capped at 100% if absolute TSR is negative 100% Financial Performance 100% Absolute TSR(3) Vest ratably over four-years based on one-, two-, three-
Slide 11: Stockholder Engagement
Stockholder Engagement Our Board oversees our stockholder engagement program though which we discuss with investors our strategies, Board, executive compensation and ESG progress Fall Engagement Contact top 30 investors to request meetings with our Lead Independent Director to discuss our strategies
Slide 12: Commitment to Strong Governance
Annual election of directors Majority voting in director elections Single class of outstanding voting stock Directors 90% independent Robust Lead Independent Director role Regular director succession planning and Board refreshment Robust, ongoing stockholder engagement program Continuous executive s
Slide 13: Appendix: Reconciliation of Non-GAAP Financial Measures from GAAP
Appendix Reconciliation of Non-GAAP Financial Measures from GAAP
Slide 14: 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 15: Reconciliation of Non-GAAP Financial Measures from GAAP
Reconciliation of Non-GAAP Financial Measures from GAAP
Slide 16: Reconciliation of Non-GAAP Financial Measures from GAAP: Adjusted EPS
Reconciliation of Non-GAAP Financial Measures from GAAP ADJUSTED EPS
Slide 17: Reconciliation of Non-GAAP Financial Measures from GAAP
Reconciliation of Non-GAAP Financial Measures from GAAP
Slide 18: oration. All rights reserved. Avery Dennison and all other Avery Dennison brands, product names
© 2020 Avery Dennison Corporation. All rights reserved. Avery Dennison and all other Avery Dennison brands, product names and codes are trademarks of Avery Dennison Corporation. All other brands or product names are trademarks of their respective owners. Fortune 500® is a trademark of Time, Inc. Bra