Slide 1: Third Quarter 2022 Financial Review and Analysis
Exhibit 99.2 Third Quarter 2022 Financial Review and Analysis (preliminary, unaudited) October 26, 2022 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. October 26, 2022 Third Quarter 2022 Financial Review and Analysis 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, are
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: Continuing to deliver strong earnings growth, Q3 in-line with expectations
Continuing to deliver strong earnings growth, Q3 in-line with expectations Significant sales and income growth ● Reported EPS of $2.70; adj. EPS (non-GAAP) of $2.46, up 15% and 26% ex. currency ● Net sales of $2.32 bil., up 19% ex. currency (non-GAAP) and 16% organically (non-GAAP) ● Operating income
Slide 5: YTD '22 Intelligent Labels up ~20%
YTD ‘22 Intelligent Labels up ~20% 2021 Sales by End Market Apparel $0.7B ~20% Non-Apparel Org. Sales $0.7B 5-YR CAGR $0.2B Pipeline by End Market ● Industry-leading position; 50%+ UHF RFID segment share Apparel ● Targeting 20%+ organic growth in coming years Food ● Clear innovation leader Logistics
Slide 6: Quarterly Sales Trend Analysis
Quarterly Sales Trend Analysis 3Q21 4Q21 1Q22 2Q22 3Q22 Reported Sales Change 19.8% 9.7% 14.5% 11.7% 11.8% (1) Organic Sales Change 13.9% 12.8% 12.7% 11.3% 15.5% Acquisitions/Divestitures 3.0% 5.7% 5.3% 5.4% 3.5% (1),(2) Sales Change Ex. Currency 17.0% 18.5% 18.0% 16.7% 19.0% Extra Week Impact - (8.
Slide 7: Quarterly Sales Trend Analysis (cont.)
Quarterly Sales Trend Analysis (cont.) Organic Sales Change 3Q21 4Q21 1Q22 2Q22 3Q22 LGM 14% 11% 12% 15% 20% RBIS 14% 20% 20% 5% 7% IHM 15% 10% 1% 7% 5% Total Company 14% 13% 13% 11% 16% Total Company 17% 19% 18% 17% 19% Sales Change Ex. Currency October 26, 2022 Third Quarter 2022 Financial Review
Slide 8: Third Quarter Sales Growth and Operating Margin Comparison
Third Quarter Sales Growth and Operating Margin Comparison Third Quarter Sales Growth Reported Ex. Currency Organic Label and Graphic Materials 11.6% 20.2% 20.4% Retail Branding and Information Solutions 17.4% 21.6% 7.2% Industrial and Healthcare Materials (1.9%) 4.0% 5.4% Total Company 11.8% 19.0%
Slide 9: Third Quarter 2022 Results: Label and Graphic Materials
Third Quarter 2022 Results AVY ‘21 Sales by Segment Label and Graphic Materials LGM LGM RBIS Reported sales increased 12% to $1.5 bil. 65% IHM Sales up 20% organically due almost entirely to pricing ● Label and Packaging Materials up more than 20% on organic basis, with strong growth in both high va
Slide 10: Third Quarter 2022 Results: Retail Branding and Information Solutions
Third Quarter 2022 Results AVY ‘21 Sales by Segment Retail Branding and Information Solutions LGM RBIS RBIS Reported sales increased 17% to $623 mil. 26% IHM Sales up 22% ex. currency and 7% organically ● High value categories up high-teens on organic basis ● Base apparel down low-single digits on o
Slide 11: Third Quarter 2022 Results: Industrial and Healthcare Materials
Third Quarter 2022 Results AVY ‘21 Sales by Segment Industrial and Healthcare Materials LGM IHM RBIS Reported sales decreased 2% to $192 mil. 9% IHM Sales up 4% ex. currency and 5% organically ● High value categories up high-single digits on organic basis ● Base categories down mid-single digits on
Slide 12: Track record of consistent results; once again poised to deliver in 2022
Track record of consistent results; once again poised to deliver in 2022 Adj. EPS 2022 EPS Guidance Previous Updated ~$9.78 Reported EPS $9.60 – $9.90 $9.65 – $9.80 Add Back: Est. restructuring costs and other items, ~$0.10 ~$0.05 including venture investment gain $9.70 – $10.00 $9.70 – $9.85 Adjust
Slide 13: Appendix: End Market Exposure, Supplemental Non-GAAP Reconciliations
Appendix: End Market Exposure Supplemental Non-GAAP Reconciliations October 26, 2022 Third Quarter 2022 Financial Review and Analysis 13
Slide 14: Broad exposure to diverse end markets
Broad exposure to diverse end markets (1) (1) (1) Sales by Product Category Sales by Consumer/Economic Sensitivity Sales by End Market (2) Other Cyclical/ Food Non-durable LATAM Industrial/ Discretionary Consumer Durable ~20% S. Asia Goods HPC U.S. ~45% ~40% China Beverage Discretionary Staples Reta
Slide 15: Adjusted EPS
Adjusted EPS The adjusted tax rate was 25%, 24.1%, and 24.6% for 2021, 2020, and 2019, respectively. (1) Includes restructuring and related charges, transaction and related costs, gain/loss on venture investments, gain/loss on sale of assets, gain on sale of product line, outcomes of legal proceedin
Slide 16: Adjusted EPS ex. currency
Adjusted EPS ex. currency October 26, 2022 Third Quarter 2022 Financial Review and Analysis 16
Slide 17: oration. All rights reserved. Avery Dennison and all other Avery Dennison brands, product names
October 26, 2022 Third Quarter 2022 Financial Review and Analysis 17 © 2022 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 ®