Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Proxy Contest (April 2017)
13 slides from Avery Dennison's proxy contest presentation, Apr 5, 2017
Slide 1: Overview of Our Business
Overview of Our Business Label and Graphic Materials Retail Branding and Information Solutions Industrial and Healthcare Materials Largest global provider of self-adhesive materials for packaged goods and variable information labeling Leading provider of graphics and reflective solutions $4.2B 2016
Slide 2: Our Strategy
Drive outsized growth in high value product categories (organically and through acquisitions) to improve our portfolio mix over time Grow profitably in our base business Continue our relentless focus on productivity to further increase our competitiveness and expand margins Deploy capital effectivel
Slide 3: We Are Delivering on Our Long-Term Financial Targets
Organic Sales Growth Adjusted(2) EPS Growth Return on Total Capital (ROTC) 4% - 5% CAGR(1) 12% - 15%+ CAGR(1) 16%+ in 2018 4% 3-Year CAGR 14% 3-Year CAGR 17% in 2016 2014 - 2018 TARGETS 2014 - 2016 RESULTS In May 2014, we announced long-term financial targets through 2018. Based on our results for t
Slide 4: Disciplined Capital Allocation / Stockholder Value Creation
Disciplined Capital Allocation We have invested in our businesses to support organic growth and pursued targeted acquisitions that support our strategy of increasing our exposure to high value product categories Over the last five years, we have allocated nearly $2 billion to dividends and share rep
Slide 5: Sustainability is a Core Value of Our Company
Sustainability is a Core Value of Our Company We have since set more ambitious goals to achieve by 2025, including a diversity commitment to increase the representation of women at the manager level and above to at least 40%. We believe our new goals will further transform our company and the indust
Slide 6: Board Qualifications: Value to Our Board and Stockholders
Qualification Value to Our Board and Stockholders # (%) of Directors Global Exposure Gives us insight into the geographic markets in which we operate, helping us remain competitive in mature markets and gain share in faster-growing emerging markets 11 (100%) Senior Leadership Experience Provides us
Slide 7: Performance-Based Compensation
Performance-Based Compensation 84% of CEO’s target total direct compensation was performance based * Total Stockholder Return (TSR) measures the return that we have provided our stockholders, including stock price appreciation and dividends paid (assuming reinvestment thereof), expressed as a percen
Slide 8: 2016 CEO Compensation Structure Overview
2016 CEO Compensation Structure Overview 84% of CEO’s target total direct compensation was performance based Long-Term Equity Incentive Award (50%) * 100% performance-based = Average vesting period of 2.5, years + Performance objective: + Absolute TSR Salary 16% Long-Term Equity Incentive Award (50%
Slide 9: 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 10: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP (1) Totals may not sum due to rounding and other factors ORGANIC SALES CHANGE BY SEGMENT ($ in millions) Label and Graphic Materials 2015 2016 Net sales $4,032.1 $4,187.3 Reported sales change (6.2)% 3.8% Foreign currency translation 10.2% 3.0% E
Slide 11: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP RETURN ON TOTAL CAPITAL (ROTC) ($ in millions) 2015 2016 As reported net income from continuing operations $320.7 Interest expense, net of tax benefit 40.3 Effective tax rate 32.8% Income from continuing operations, excluding expense and tax bene
Slide 12: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP ORGANIC SALES CHANGE inion) 201320142015 2016 3-YR CAGR Net sales '$6,140.0 $6330.38 $5,966.9 6,086.5 Reported sales change 31% (57% 2.0% Foreign currency translation 11% 86% 26%. Entra week impact “12% 1.2% Acquisitonsidivestiture 0.6% (0.7% ‘Or
Slide 13: Avery Dennison
A, AVERY DENNISON