Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Shareholder Meeting (April 2018)
15 slides from Avery Dennison's shareholder meeting presentation, Apr 4, 2018
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 $4.5B 2017
Slide 2: Our Plan to Win Is Driving Strong Performance
Our Plan to Win Is Driving Strong Performance Drive outsized growth in high value categories with higher growth and margin potential Grow profitably in our base business through tailored go-to-market strategies and disciplined execution Maintain our relentless focus on productivity through continued
Slide 3: Delivering on Our Long-Term Financial Targets
2021 Financial Targets On pace to deliver 2018 Financial Targets On track to achieve or exceed Organic Sales Growth Adjusted EPS Growth Return on Total Capital (ROTC) 4%-5% 12%-15%+ 16%+ in 2018 4% 17% 13% in 2017 Adj. = 19% in 2017 2014-2017 RESULTS 2014-2018 TARGETS* Delivering on Our Long-Term Fi
Slide 4: Disciplined Capital Allocation and Strong Stockholder Value Creation
Capital Allocation Over the last 5 years, we have allocated approximately $2 billion to dividends and share repurchases We have also invested in our businesses to support organic growth and acquired targeted companies that increased our exposure to high value product categories 2013 2014 2015 2016 2
Slide 5: Sustainability Is One of Our Core Values
Sustainability Is One of Our Core Values 2025 Sustainability Goals Focus Area Goal(s) Greenhouse Gas Emissions Achieve at least 3% absolute reduction year-over-year. Paper Source 100% certified paper, of which at least 70% will be Forest Stewardship Council®-certified. Films Ensure that 70% of the f
Slide 6: Our Director Nominees Have Diverse Skills and Backgrounds
Our Director Nominees Have Diverse Skills and Backgrounds Our Board’s primary responsibilities Establishing a strong governance program, with a Board and Committee structure that ensures independent oversight Overseeing our businesses, strategies and risks Maintaining the integrity of our financial
Slide 7: Engagement Informs Strong Governance & Compensation Profiles
We maintain a year-round stockholder engagement program during which we proactively reach out to our largest investors to discuss our strategy and financial performance, executive compensation matters, Board composition and succession planning, and progress towards achieving our sustainability goals
Slide 8: Executive Compensation Overview
Executive Compensation Overview Base Salary Targeted at market median 50% Market-leveraged Stock Units (MSUs) 100% performance-based Absolute TSR* Avg. performance period of 2.5 years Performance Units (PUs) 100% performance-based Relative TSR* and Cumulative EVA* 3-year performance period 50% 50% *
Slide 9: Executive Compensation Overview
Executive Compensation Overview Our executive compensation program aligns with our financial goals and prioritizes pay for performance, with realized compensation dependent on our achieving annual and long-term financial performance and value creation objectives that advance the interests of our sto
Slide 10: 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 11: 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 2016 2017 Net sales $4,187.3 $4,511.7 Reported sales change 3.8% 7.7% Foreign currency translation 3.0% (0.8)% Ac
Slide 12: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP ADJUSTED EARNINGS PER SHARE (EPS) (1) Compound Annual Growth Rate (2) GAAP adjustments for 2013-2015 reflect the previously disclosed impact of the third quarter of 2015 revision to certain benefit plan balances, which had an immaterial impact on
Slide 13: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP RETURN ON TOTAL CAPITAL (ROTC) ($ in millions) 2016 2017 Adjusted 2017 ROTC As reported net income $320.7 $281.8 $281.8 Estimated tax provision impact resulting from the TCJA(1) — — $172.0 Impact of previously planned repatriation of foreign earn
Slide 14: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP FREE CASH FLOW (Sn mations 2016 2016 2017 ‘Net cash provided by operating activities $4737 ($585.3 $6504 Purchases of property, plant and equipment (1358) (1769) (190.5) Purchases of software and other deferred charges (187) (29.7) 58) Proceeds f
Slide 15: Avery Dennison
AVERY DENNISON rademarks of Avery Dennison Corporation. All "dompany names and other information 15 | Proxy Season Stockholder Engagement Spring 2018 B80