Slide 1: Second Quarter 2022 Financial Review and Analysis
Exhibit 99.2 Second Quarter 2022 Financial Review and Analysis (preliminary, unaudited) July 27, 2022 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. July 27, 2022 Second 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: Strong performance continues; raising guidance
Strong performance continues; raising guidance Successfully navigating dynamic macro environment; Q2 above expectations ● Reported EPS of $2.61; adj. EPS (non-GAAP) of $2.64, up 17% ● Revenue of $2.35 bil., up 17% ex. currency and 11% organically ● Operating income up significantly, both year-over-ye
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 2Q21 3Q21 4Q21 1Q22 2Q22 Reported Sales Change 37.5% 19.8% 9.7% 14.5% 11.7% (1) Organic Sales Change 28.1% 13.9% 12.8% 12.7% 11.3% Acquisitions/Divestitures 1.1% 3.0% 5.7% 5.3% 5.4% (1),(2) Sales Change Ex. Currency 29.2% 17.0% 18.5% 18.0% 16.7% Extra Week Impact - - (
Slide 7: Quarterly Sales Trend Analysis (cont.)
Quarterly Sales Trend Analysis (cont.) Organic Sales Change 2Q21 3Q21 4Q21 1Q22 2Q22 LGM 16% 14% 11% 12% 15% RBIS 72% 14% 20% 20% 5% IHM 33% 15% 10% 1% 7% Total Company 28% 14% 13% 13% 11% Total Company 29% 17% 19% 18% 17% Sales Change Ex. Currency July 27, 2022 Second Quarter 2022 Financial Review
Slide 8: Second Quarter Sales Growth and Operating Margin Comparison
Second Quarter Sales Growth and Operating Margin Comparison Second Quarter Sales Growth Reported Ex. Currency Organic Label and Graphic Materials 8.4% 14.3% 14.5% Retail Branding and Information Solutions 24.2% 27.0% 4.5% Industrial and Healthcare Materials 0.6% 4.7% 7.1% Total Company 11.7% 16.7% 1
Slide 9: Second Quarter 2022 Results: Label and Graphic Materials
Second Quarter 2022 Results Label and Graphic Materials 2021 Sales by Product Reported sales increased 8% to $1.5 bil. Base (Label & Graphics) Sales up 14% ex. currency and 15% organically High Value Specialty/Durables Labels Categories ● Label and Packaging Materials up high teens on organic basis,
Slide 10: Second Quarter 2022 Results: Retail Branding and Information Solutions
Second Quarter 2022 Results Retail Branding and Information Solutions (1) 2021 Sales by Product Reported sales increased 24% to $658 mil. Base Tags & Labels Sales up 27% ex. currency and 5% organically High Value Intelligent Labels Categories ● Strong growth in high value categories, including Intel
Slide 11: Second Quarter 2022 Results: Industrial and Healthcare Materials
Second Quarter 2022 Results Industrial and Healthcare Materials 2021 Sales by Product Reported sales increased 1% to $198 mil. Automotive Sales up 5% ex. currency and 7% organically High Value Other Industrial Categories ● Industrial categories up mid-single digits on organic basis Healthcare ● Heal
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 ~$9.85 Reported EPS $9.35 – $9.75 $9.60 – $9.90 Add Back: Est. restructuring costs and other items ~$0.10 ~$0.10 Adjusted EPS (non-GAAP) $9.45 – $9.85 $9.70 – $10.00 Contributing Fact
Slide 13: Appendix: End Market Exposure, Supplemental Non-GAAP Reconciliations
Appendix: End Market Exposure Supplemental Non-GAAP Reconciliations July 27, 2022 Second Quarter 2022 Financial Review and Analysis 13
Slide 14: Broad exposure to diverse end markets
Broad exposure to diverse end markets (1) (1) 2021 Sales by Product Category 2021 Sales by End Market, est. Cyclical/ Discretionary ~20% (2) Other ● Industrial/ Food Industrial / LATAM Durables Durable S. Asia HPC U.S. ~40% Emerging China Markets Pharma ~30% E. Europe Retail Discretionary Beverage &
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 and EBITDA, ex. currency
Adjusted EPS and EBITDA, ex. currency July 27, 2022 Second Quarter 2022 Financial Review and Analysis 16
Slide 17: oration. All rights reserved. Avery Dennison and all other Avery Dennison brands, product names
July 27, 2022 Second 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 ® t