Slide 1: Fourth Quarter and Full Year 2024 Financial Review and Analysis
Fourth Quarter and Full Year 2024 Financial Review and Analysis (preliminary, unaudited) January 30, 2025 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. January 30, 2025 Preliminary & unaudited, Q4 & FY 2024 financial review and a
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, a
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: Full year 2024: net sales of $8.8 bil., adj. EPS of $9.43
Delivered 19% adj. EPS growth in 2024, at high end of original guidance, again demonstrating the strength of our franchise Reported operating income of $1.0B Net sales of $8.8 bil. ● Adj. EBITDA margin (non-GAAP) of 16.4%, up 130 bps ● Adj. Operating margin (non-GAAP) of 12.8%, up 130 bps Sales chan
Slide 5: In 2024, both our businesses delivered strong growth and margins
In 2024, both our businesses delivered strong growth and margins Materials Group delivered strong top-line growth and margin expansion ● 4% organic sales growth on strong volume growth following inventory destocking in 2023 ○ HSD volume growth, partially offset by deflation-related price reductions ○
Slide 6: Superior earnings compounder over the long term
Superior earnings compounder over the long term, with a consistent track record of delivering GDP+ growth, margin expansion and top-quartile ROTC 2011-2015 2013-2018 2016-2021 2020-2025 2023-2028 (1) TARGETS TARGETS TARGETS TARGETS TARGETS Sales Growth 3%-5% 4%-5% 5%+ 5%+~7%‘20-’24 ex. curr. 5%+ 15%
Slide 7: Confident in continuing to deliver strong earnings growth in 2025
Confident in continuing to deliver strong earnings growth in 2025 Expect adj. EPS of $9.80 to $10.20 (up ~10% ex. currency), with organic sales growth of 3.0% to 4.0% ● Assumes GDP growth similar to 2024; prepared for alternative economic and geopolitical scenarios Delivering strong results across ou
Slide 8: Q4 net sales of $2.2 bil., adj. EPS of $2.38, up 10%
Delivered another strong quarter in Q4, with adj. EPS up 10% Reported operating income of $263 mil. Net sales of $2.2 bil. ● Adj. EBITDA margin of 16.4%, up 40 bps ● Adj. Operating margin of 12.8%, up 40 bps Sales change ex. currency up 3.5% Organic sales change up 3.3% Generated strong adj. FCF of
Slide 9: Fourth Quarter 2024 Results: Materials Group
Fourth Quarter 2024 Results Materials Group 2024 Sales by Product Product Category Reported sales increased 4% to $1.5 bil. Sales up 4% ex. currency and organically High-value Label Materials Categories Graphics & Reflectives ● High-value categories up HSD digits; base categories up LSD organically 3
Slide 10: Fourth Quarter 2024 Results: Solutions Group
Fourth Quarter 2024 Results Solutions Group 2024 Sales by Product Product Category Reported sales increased 3% to $714 mil. Base Solutions Sales up 3% ex. currency and 3% organically High-value Intelligent Labels (IL) ● High-value categories down MSD ex. currency Categories Vestcom ○ Strong growth i
Slide 11: Intelligent Labels delivering significant growth across the portfolio
Enterprise-wide Intelligent Labels — delivering significant growth across the portfolio, with clear competitive advantages in scale, innovation and go-to-market strategy Apparel In Q4, LSD decline in IL; apparel up ~15% and general retail up ~40%, offset by decline in logistics %rowth) General Retail
Slide 12: Disciplined approach to capital allocation; strong balance sheet
Disciplined approach to capital allocation; strong balance sheet with ample capacity Long-term capital allocation framework Long-term debt summary % of Available Capital ‘20-’25 Target ‘20-’24 Actual 3.4% weighted avg. interest rate (3.8% excl. 3/2025 €500M repayment) Capex/restructuring 25%-30% 25%
Slide 13: 2025 EPS Guidance
2025 EPS Guidance Low High Reported EPS $9.55 $9.95 Est. restructuring costs and other items ~$0.25 ~$0.25 Adjusted EPS $9.80 $10.20 Sales Growth ● Reported 0.5% 1.5% ● Organic 3.0% 4.0% Additional contributing factors ● ~$30 mil. headwind to operating income from currency translation ● Incremental
Slide 14: 2025 Adjusted EPS Drivers
2025 Adjusted EPS Drivers 7%-12% adj. EPS growth ex. currency ~$0.10 $9.80-$10.20 ~$0.60-$0.90 + Share count Tax rate $9.43 ~($0.25-$0.30) - Net Interest + Volume/mix + Net productivity + Restructuring - Employee costs - Investments January 30, 2025 Preliminary & unaudited, Q4 & FY 2024 financial rev
Slide 15: Appendix
Appendix Summary Financials & Reconciliation of Non-GAAP Financial Measures from GAAP September 18, 2024 Avery Dennison 2024 Investor Day 15
Slide 16: Progress vs. 2025 long-term targets
Progress vs. 2025 long-term targets 2020-2025 2020-2024 TARGETS RESULTS Sales Growth Ex. Currency(1) 5%+ 7% 4-YR CAGR Adjusted EBITDA Growth(1)(2) 6.5% 8% 4-YR CAGR ~9% ex-curr. Adjusted EBITDA Margin 16%+ 16.4% in 2025 in 2024 Adjusted EPS Growth(1) 10% 7.4% 4-YR CAGR ~9% ex-curr. ROTC 18%+ 16% in
Slide 17: Fourth quarter 2024 sales and margin comparisons
Fourth quarter 2024 sales and margin comparisons Sales Change Reported Ex. Currency Organic Materials Group 3.7% 3.7% 3.7% Solutions Group 3.2% 3.1% 2.6% Total Company 3.6% 3.5% 3.3% Reported Adjusted Adjusted Operating Margin Operating Margin EBITDA Margin 4Q24 4Q23 4Q24 4Q23 4Q24 4Q23 Materials Gr
Slide 18: Full year 2024 sales and margin comparisons
Full year 2024 sales and margin comparisons Sales Change Reported Ex. Currency Organic Materials Group 3.5% 3.7% 3.7% Solutions Group 7.4% 8.2% 6.1% Total Company 4.7% 5.1% 4.5% Reported Adjusted Adjusted Operating Margin Operating Margin EBITDA Margin 4Q24 4Q23 4Q24 4Q23 4Q24 4Q23 Materials Group 1
Slide 19: Quarterly sales trend analysis
Quarterly sales trend analysis 4Q23 1Q24 2Q24 3Q24 4Q24 Reported Sales Change 4.2% 4.2% 6.9% 4.1% 3.6% Organic Sales Change 1.1% 3.1% 7.1% 4.3% 3.3% Acquisitions/Divestitures 1.4% 1.1% 0.9% 0.3% 0.2% Sales Change Ex. Currency(1) 2.5% 4.2% 8.0% 4.7% 3.5% Currency Translation 1.6% 0.0% (1.1%) (0.6%) 0
Slide 20: Quarterly sales trend analysis (cont.)
Quarterly sales trend analysis (cont.) Organic Sales Change 4Q23 1Q24 2Q24 3Q24 4Q24 Materials Group (3.9%) 1.9% 5.6% 3.6% 3.7% Solutions Group 13.9% 5.8% 10.8% 6.0% 2.6% Total Company 1.1% 3.1% 7.1% 4.3% 3.3% Total Company 2.5% 4.2% 8.0% 4.7% 3.5% Sales Change Ex. Currency January 30, 2025 Prelimin
Slide 21: 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 January 30, 2025 Preliminary & unaudited, Q4 & FY 2024 financial review and analysis 21
Slide 22: 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. January 30, 2025 Preliminary & unaudited, Q4 &
Slide 23: Adjusted EPS
Adjusted EPS (1) The adjusted tax rate was 25.9%, 25.8%, 24.7%, 25.0%, 24.1%, and 24.6% for 2024, 2023, 2022, 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
Slide 24: Return on total capital (ROTC)
Return on total capital (ROTC) January 30, 2025 Preliminary & unaudited, Q4 & FY 2024 financial review and analysis 24
Slide 25: Adj. EBITDA and adj. EPS change ex. currency
Adj. EBITDA and adj. EPS change ex. currency – Avery Dennison (1) (1) (1) Totals may not sum due to rounding January 30, 2025 Preliminary & unaudited, Q4 & FY 2024 financial review and analysis 25
Slide 26: averydennison.com #MakingPossible
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