Slide 1: Fourth Quarter and Full-Year 2011 Financial Review and Analysis
Exhibit 99.2 Fourth Quarter and Full-Year 2011 Financial Review and Analysis (preliminary, unaudited) Supplemental Presentation Materials January 31, 2012 Unless otherwise indicated, the discussion of the Company’s results is focused on its continuing operations
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 r
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. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, including limitations associated with these non-GAAP financial measures,
Slide 4: Overview
Overview Challenging 2011 « Sales grew 1.7% on organic basis as pricing offset modest volume decline * Operating margin declined 50 basis points as increased raw material costs and higher costs associated with restructuring were partially offset by pricing actions end productivity initiatives. Exclu
Slide 5: Overview (continued)
Overview (continued) Fourth quarter results in line with recent guidance • Sales grew slightly on organic basis as pricing offset modest volume decline • Operating margin declined 80 basis points to 3.8% increased as raw material costs, the impact of lower volume, and increased costs associated with
Slide 6: Fourth Quarter P&L Summary
Fourth Quarter P&L Summary • Net sales increased 0.7% on organic basis • Operating margin declined 80 basis points compared to prior year – Excluding costs associated with restructuring and other items, operating margin was roughly flat • Interest expense down slightly compared to prior year • Effec
Slide 7: Sales Trend Analysis
Sales Trend Analysis el 4Q10 1Q11 2Q11 3Q11 Organic Sales Change 10.8% 8.9% (1.5%) (0.8%) Product Line Divestiture - - - - Currency (1.5%) 0.4% 5.0% 5.8% Reported Sales Change 9.3% 9.3% 3.5% 5.0% 7 Fourth Quarter and Full-Year2011 Financial Review and Analysis | January 31, 2012 Ay ree DENNISON
Slide 8: Margin Analysis
Margin Analysis | As Reported Adjusted (Non-GAAP) * 4Qi1 4010 3Q11 4qii 4Q10 3Qi1l Gross Profit Margin (total Company) 24.7% | 24.9% 24.5% Operating Margin: Pressure-sensitive Materials 6.9% 7.3% 7.7% 7.3% 7.4% 8.3% Retail Branding and Information Solutions 2.7% 4.5% 0.7% 4.4% 4.5% 3.3% Other specia
Slide 9: Fourth Quarter Segment Overview
Fourth Quarter Segment Overview PRESSURE-SENSITIVE MATERIALS • Reported sales of $961 mil., up 2% compared to prior year – Sales up approx. 3% on organic basis • Label and Packaging Materials sales up low single digits on organic basis driven by pricing actions • Graphics and Reflective Solutions sa
Slide 10: Fourth Quarter Segment Overview (continued)
Fourth Quarter Segment Overview (continued) RETAIL BRANDING AND INFORMATION SOLUTIONS • Reported sales of $368 mil., down approx. 5% compared to prior year – Sales down approx. 4% on organic basis • Operating margin declined 180 basis points to 2.7% as lower volume and increased costs associated wit
Slide 11: Contributing Factors to 2012 Results
Contributing Factors to 2012 Results Organic sales growth of 1% to 4% • Currency translation (at January rates, represents approx. 3% headwind to reported sales growth; approx. $18 mil. negative impact to EBIT vs. 2011) • Tax rate in low to mid-thirty percent range; cash tax rate in upper-twenty per
Slide 12: 2012 Earnings and Free Cash Flow Guidance (Continuing Operations)
2012 Earnings and Free Cash Flow Guidance (Continuing Operations) Reported (GAAP) Earnings Per Share $1.65 - $2.00 Add Back: Estimated Restructuring Costs and Other Items ~$0.15 Adjusted (non-GAAP) Earnings Per Share $1.80 - $2.15 Free Cash Flow $275 - $325 mil. 1Q12 earnings expected to be 20% to 2
Slide 13: Appendix: Results from Continuing Operations
Appendix: Results from Continuing Operations Avery Dennison Results from Continuing Operations (Excluding severance and related costs, asset impairment and lease cancellation charges, and other items) Dollars in millions, except per share amounts 1Q10 2Q10 3Q10 4Q10 FY10 1Q11 2Q11 3Q11 4Q11 FY11 Tot
Slide 14: Appendix: Results from Continuing Operations (Reconciliation)
Appendix: Results from Continuing Operations (Reconciliation) Total Company (continuing operations) Reconciliation of Operating Margins: 1Q10 2Q10 3Q10 4Q10 FY10 1Q11 2Q11 3Q11 4Q11 FY11 Net Sales (A) $1,397.0 $1,492.8 $1,429.6 $1,462.6 $5,782.0 $1,526.5 $1,544.8 $1,500.4 $1,454.6 $6,026.3 Income fr
Slide 15: Appendix: Results from Continuing Operations (Reconciliation)
Appendix: Results from Continuing Operations (Reconciliation) Pressure-sensitive Materials Reconciliation of Operating Margins: 1Q10 2Q10 3Q10 4Q10 FY10 1Q11 2Q11 3Q11 4Q11 FY11 Net Sales $918.4 $942.1 $914.4 $942.5 $3,717.4 $1,009.4 $1,006.2 $995.5 $960.5 $3,971.6 Operating income, as reported 85.3
Slide 16: Appendix: Results from Continuing Operations (Reconciliation)
Appendix: Results from Continuing Operations (Reconciliation) Total Company (continuing operations) Estimated change in sales due to: 1Q10 2Q10 3Q10 4Q10 FY10 1Q11 2Q11 3Q11 4Q11 FY11 As reported sales change 11% 19% 8% 9% 12% 9% 4% 5% -1% 4% Foreign currency translation -5% -2% 3% 2% -1% 0% -5% -6%