Slide 1: Third Quarter 2013 Financial Review and Analysis
Third Quarter 2013 Financial Review and Analysis (preliminary, unaudited) Supplemental Presentation Materials Unless otherwise indicated, the discussion of the company’s results is focused on its continuing operations, and comparisons are to the same period in the prior year. Results reflect classif
Slide 2: 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 targets, are subject to certain
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. These non-GAAP financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. Reconciliations of non-GAAP f
Slide 4: Third Quarter Overview
Third Quarter Overview Results in line with company’s expectations Sales up approx. 4% on organic basis driven by higher volume Operating margin, as reported, improved 100 basis points as the benefit of productivity initiatives and higher volume more than offset the impact of changes in product mix
Slide 5: Sales Trend Analysis
3Q12 4Q12 1Q13 2Q13 3Q13 Organic Sales Change 6.1% 6.7% 3.7% 5.0% 3.6% Currency Translation (6.7%) (1.5%) 0.3% (0.6%) 0.7% Reported Sales Change* (0.5%) 5.0% 3.9% 4.2% 4.0% Sales Trend Analysis *Totals do not sum due to rounding and other factors.
Slide 6: Segment Sales and Margin Analysis
Segment Sales and Margin Analysis 3Q13 Reported Organic Sales Growth: Pressure-sensitive Materials 4% 4% Retail Branding and Information Solutions 4% 4% Other specialty converting businesses 3% 5% Continuing Operations 4% 4% Adjusted As Reported (Non-GAAP) 3Q13 3Q12 3Q13 3Q12 Operating Margin: Press
Slide 7: Third Quarter Segment Overview
Third Quarter Segment Overview PRESSURE-SENSITIVE MATERIALS (PSM) Reported sales of $1.09 bil., up approx. 4% compared to prior year Sales up approx. 4% on organic basis Label and Packaging Materials sales up low single digits on organic basis Combined sales for Graphics, Reflective, and Performance
Slide 8: Contributing Factors to 2013 Guidance
Contributing Factors to 2013 Guidance Organic sales growth of 3% to 4% At recent rates, currency translation has modest positive benefit to reported sales growth and EBIT Incremental pre-tax benefit from restructuring actions ~ $70 mil. Interest expense of ~$60 mil. Tax rate comparable to 2012 Restr
Slide 9: 2013 EPS and Free Cash Flow Guidance (continuing operations)
2013 EPS and Free Cash Flow Guidance (continuing operations) Add Back: Estimated restructuring costs and other items, net of gain on sale of assets ~ $0.20 Adjusted EPS (non-GAAP) Reported EPS $2.40 - $2.50 Free Cash Flow $275 mil. - $315 mil. $2.60 - $2.70
Slide 10: Avery Dennison
AVERY DENNISON Inspired Brands. Intelligent World.” Sarees wees SSisees ae Cee ener eee os