Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Investor Presentation (February 2026)
45 slides from Avery Dennison's investor presentation, February 2026
Slide 1: Investor Presentation February 2026
Investor Presentation February 2026 February 2026 Investor Presentation 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 targe
Slide 3: Avery Dennison at a glance
Click here to learn more Avery Dennison at a glance 2025 Net Sales ● Recognized industry leader $8.9 Billion ● Global materials science and digital identification solutions company ● Provider of a wide range of branding and information solutions that optimize labor and supply chain efficiency, reduce
Slide 4: Creating superior long-term value
Creating superior long-term value ● Large, growing and diverse end markets, largely anchored in consumer staples ● #1 player in our primary businesses, leveraging strong competitive advantages: ○ Global scale, materials science, process technology and innovation capabilities, operational excellence
Slide 5: Broad exposure to diverse markets, with increasing portfolio strength
Broad exposure to diverse markets, with increasing portfolio strength Sales by End Market(1) Sales by Geography(1) Sales by Category(1) Latin Ind u Am. Fo Du stria Other od rab l/ le Asia-Pac U.S. & HPC China ~30% Canada High- ~45% ~60% value High-value Staples Appare Emerging EEMENA up ~12 pts. rag
Slide 6: Delivered solid results for the 2020-2025 cycle; targets for 2023-2028
Delivered solid results for the 2020-2025 cycle despite multiple cyclical challenges; leveraging strength of portfolio to deliver our 2023-2028 targets 2020-2025(1) 2023-2028(1) Targets / Results Targets / Results Sales Growth ex. Currency 5%+ 6% 5%+ 3% 6.3% Adj. EBITDA Growth(2) 6.5% 7.5%+ 7.3% (~7
Slide 7: Executing key strategies to deliver GDP+ growth and top quartile returns
Executing key strategies, with proven business resilience, to deliver GDP+ growth and top quartile returns across cycles 1 Drive outsized growth in high-value categories through market-driven innovation 2 Grow profitably in our base businesses 3 Lead at the intersection of the physical and digital 4
Slide 8: Unlocking Value: Expanding High-Value Category exposure
Unlocking Value: Expanding High-Value Category exposure is a key contributor to driving outsized sales growth and margin expansion over the long term Sales by Category 2015 2019 2025 High-value Base ~28% ~33% ~45% 2015 to 2019 2019 to 2025 Starting Point Est. HVC Organic (2015) Growth(1)(2) MSD CAGR
Slide 9: Leveraging portfolio strength to help address key industry challenges
Click here to learn more Leveraging the strength of our portfolio to help address key industry challenges Optimizing labor and supply chain Reducing waste and efficiency mitigating loss Advancing sustainability, Helping brands and circularity and consumers better connect transparency February 2026 In
Slide 10: Together, our businesses create a unique opportunity for value creation
Together, our businesses create a unique opportunity for significant value creation Materials Solutions Group Group ● Industry leader ● Industry leader ● Stable and diverse end Intelligent Labels ● Relevant data management and digital markets with GDP+ growth ● Industry leader capabilities, with end-
Slide 11: Targeting strong top-line growth over the long term
Targeting strong top-line growth over the long term Acquisitions (accelerate our 5%+ strategies) Sales Growth 1.5+ pts. ~15%+ growth in Ex. Currency Intelligent Labels ~2 pts. outsized growth in high-value categories M&A ~1 pt. grow profitably Intelligent in the base Labels High-value Categories Base
Slide 12: Our long-term financial framework
Our long-term financial framework 5%+ 17%+ Sales Growth Ex. Adj. EBITDA Margin Currency in 2028 Top 10% Quartile(1) Adj. EPS Growth ROTC Note: Long-term targets are annualized and represent a 5-year horizon ending in 2028 (1) Compared to peer group on page 71 of our 2025 Proxy Statement February 2026
Slide 13: Disciplined approach to capital allocation
Disciplined approach to capital allocation Strong balance sheet with target leverage ratio that provides ample capacity for investment and lowest WACC over cycles Long-term Capital Uses ~$8B of capital available for deployment 2024-2028 (% of total cap. avail.) ● Investing organically and through M&
Slide 14: Segment Overview
Segment Overview February 2026 Investor Presentation 14
Slide 15: Materials Group: Product Category and Financial Snapshot
Materials Group 2025 Sales by Product Product Category Label Materials High-value Graphics & Reflectives Categories Performance Materials(1) 38% Other (1) Performance Materials includes: industrial and medical tapes, trade adhesives, and Taylor Adhesives 2025 Financial Snapshot Net Sales $6.1 bil. 20
Slide 16: Materials Group delivers growth and significant returns
Materials Group delivers growth and significant returns Leader in growing self-adhesive label materials industry (~2.5X next largest competitor) Clear and sustainable competitive advantages ● Global scale with 10,000+ converting partners ● Materials science, including vertical integration in adhesive
Slide 17: Outsized growth in high-value categories, supported by secular trends
Continuing to deliver outsized growth in high-value categories, supported by secular trends Specialty Labels Materials Group ● Premiumization in wine, spirits and craft beer High-value Categories(1) ● Aging populations and cold chain logistics (pharma) ● Freshness, multi-use and convenience (reclosu
Slide 18: Solutions Group: Product Category and Financial Snapshot
Solutions Group 2025 Sales by Product Product Category Base Solutions High-value Intelligent Labels (IL) Categories Vestcom 60% Ext. Embellishments (Embelex) 2022 Financial Snapshot 2025 Net Sales $2.8 bil. 2025 Sales by Geography Est. End Market U.S. & Canada Sales Change Ex. Currency 5-YR CAGR 12.
Slide 19: Solutions Group offers significant profitable growth opportunity
Solutions Group offers significant profitable growth opportunity as we unlock new value for customers Leader in global branding and identification solutions that help address key industry challenges Demonstrated competitive advantages ● Global scale and footprint; vertically integrated ● Innovation lea
Slide 20: Unlocking large, expanding, untapped Intelligent Label end markets
Unlocking large, expanding, untapped and attractive Intelligent Label end markets ⬤ Total market est. ⬤ IL addressable market est. 200 (billions of units) 45 20 60 ⬤ Current IL adoption est. 10 5 10 Apparel General Beauty & Food Logistics Auto Healthcare Retail Personal Care Attractive 1. Significant
Slide 21: Vertical integration across the RFID technology ecosystem
Our vertical integration across the RFID technology ecosystem helps us drive adoption and create value Base Media Service Print/ Readers/ Software/ Solutions/ Chips Inlays materials conversion bureau encode infra. SaaS Services Chip Inlay Materials Inlay Integration / Data Printer Digital ID Segment
Slide 22: Our leading position in Intelligent Labels is delivering significant growth
Our leading position in Intelligent Labels is delivering significant growth Our Competitive Advantages: ● Industry-leading innovation 12 %rowth ○ Broad product and IP portfolio ~ ales G -’25) cS ‘19 $0.9B ○ Experienced team rg ani AGR ( O RC ○ State-of-the-art digital cloud platform and data 6-Y mana
Slide 23: Embelex: helping brands and consumers better connect
Click here to learn more Embelex: helping brands and consumers better connect Competitive Strong growth platform Advantages ~10% Org. Sales CAGR 6-YR (‘19-’25) Global scale Customization and Elevating Brand Consumer 2019 2020 2021 2022 2023 2024 2025 Personalization Identity Experience Value Creatio
Slide 24: Vestcom: productivity and media solutions for the retail shelf-edge
Vestcom provides industry-leading productivity and Sales by End Market media solutions for the retail shelf-edge, with strong data management capabilities DOLLAR STORES ● MSD organic growth with strong margins ● Consumer engagement solutions ● Delivering strong ROI for customers enable sales lift th
Slide 25: Appendix A
Appendix A Select slides from Q4 2025 earnings release (all forward-looking statements as of February 4, 2026) and supplemental information February 2026 Investor Presentation 25
Slide 26: Delivered solid 2025 earnings and strong cash flow
Delivered solid 2025 earnings and strong cash flow in a dynamic environment Q4 adj. EPS (non-GAAP) of $2.45, up 3% ● Sequentially improved adj. EPS growth with strong growth in high-value categories FY 2025 adj. EPS of $9.53, up 1% ● Delivered earnings and cash flow growth; successfully mitigated tari
Slide 27: Fourth quarter 2025 financial review
Fourth quarter 2025 financial review Reported operating income of $241 mil. Net sales of $2.3 bil. ● Adj. EBITDA margin of 16.2%, down 20 bps ● Adj. operating margin (non-GAAP) of 12.4%, down 40 bps Sales down 0.2% on an organic basis (non-GAAP) Sales change ex. currency up 0.6% (non-GAAP) Strong adj
Slide 28: Full Year 2025 financial review
Full Year 2025 financial review Reported operating income of $1.0 bil. Net sales of $8.9 bil. ● Adj. EBITDA margin of 16.4%, comparable to PY ● Adj. operating margin of 12.7%, down 10 bps Sales up 0.2% on an organic basis Sales change ex. currency up 0.4% Strong adj. FCF of $707 mil. ● Adj. free cash
Slide 29: High-value categories are a key driver for enterprise growth
High-value categories are a key driver for enterprise growth and portfolio strength HVC mix expansion continues, up to ~45% of sales in 2025, with a mid-single digit organic growth CAGR ~12 points of expansion since 2019 driven by a combination of organic growth and acquisitions ● HVC have outperfor
Slide 30: Enterprise-wide Intelligent Labels
Enterprise-wide Intelligent Labels 2025 Sales by category Overall Results: Apparel ● Q4 sales up MSD on organic basis General Retail ○ Apparel/General retail categories down LSD ○ Other categories up high-teens $0.9B Food & Logistics All Other ● FY sales up LSD on an organic basis ○ Apparel/General
Slide 31: Q1 2026 EPS Guidance
Q1 2026 EPS Guidance (as of February 4, 2026) Low High Reported EPS $2.27 $2.33 Est. restructuring costs and other items ~$0.13 ~$0.13 Adjusted EPS $2.40 $2.46 In Q1 2026, anticipate adj. EPS $2.40-$2.46 ● Reported sales growth of 5-7% and organic sales growth of 0-2% ○ ~4% tailwind from currency tr
Slide 32: Disciplined capital allocation; strong balance sheet
Disciplined approach to capital allocation; strong balance sheet with ample capacity Q4 2025 Leverage Debt / Liquidity Considerations Total Debt Outstanding $3.7B ● 2.4x simple leverage at year-end, within our 2-3x target net leverage ratio Cash and cash equivalents $0.2B ● Growing dividend in-line
Slide 33: Our 2030 Sustainability Goals
Our 2030 Sustainability Goals Baseline (2015) 2025 Results(1) Satisfy the recycling, composting or reuse requirements of all single-use consumer packaging and apparel with our products and solutions. 82% Deliver innovations Solutions Group (Apparel Solutions Only) 81% that advance the circular 100%
Slide 34: Appendix B
Appendix B Reconciliation of Non-GAAP Financial Measures from GAAP February 2026 Investor Presentation 34
Slide 35: 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 36: Sales Change Ex. Currency and Organic Sales Change
Sales Change Ex. Currency and Organic Sales Change – Avery Dennison (1) (1) (1) Totals may not sum due to rounding February 2026 Investor Presentation 36
Slide 37: Organic Sales Change – by Segment
Organic Sales Change – by Segment (1) (1) (1) (1) (1) Totals may not sum due to rounding February 2026 Investor Presentation 37
Slide 38: Adjusted Operating Margin and EBITDA
Adjusted Operating Margin and EBITDA — Avery Dennison (1) (1) GAAP adjustments for 2015 reflect the previously disclosed impact of the third quarter of 2015 revision to certain benefit plan balances, which had an immaterial impact on the non-GAAP amounts. February 2026 Investor Presentation 38
Slide 39: Adjusted Operating Margin and EBITDA — by Segment
Adjusted Operating Margin and EBITDA — by Segment February 2026 Investor Presentation 39
Slide 40: Adjusted EPS
Adjusted EPS – Avery Dennison (1) The adjusted tax rate was 25.5%, 25.9%, 25.8%, 24.7%, 25.0%, and 24.1% for 2025, 2024, 2023, 2022, 2021, and 2020, respectively. (1) Includes restructuring and related charges, transaction and related costs, (gain)/loss on venture and other investments, net, (gain)/
Slide 41: Adj. EBITDA and adj. EPS change ex. currency
Adj. EBITDA and adj. EPS change ex. currency – Avery Dennison (1) (1) Totals may not sum due to rounding (1) (1) Totals may not sum due to rounding February 2026 Investor Presentation 41
Slide 42: Return on total capital (ROTC)
Return on total capital (ROTC) – Avery Dennison February 2026 Investor Presentation 42
Slide 43: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA – Avery Dennison February 2026 Investor Presentation 43
Slide 44: Adjusted Free Cash Flow and Conversion
Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion – Avery Dennison February 2026 Investor Presentation 44
Slide 45: Thank you.
Thank you. averydennison.com #MakingPossible © 2026 Avery Dennison Corporation. All rights reserved. The “Making Possible” tagline, 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 trademar
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