Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Investor Presentation (August 2026)
48 slides from Avery Dennison's investor presentation, August 2026
Slide 1: Investor Presentation August 2026
Investor Presentation August 2026 August 2026 Investor Presentation 1
Slide 2: Forward-Looking Statements
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 targe
Slide 3: Avery Dennison at a glance
Click here to learn more Avery Dennison at a glance 2025 Net Sales ● Recognized industry leader $8.9 Billion ● Global materials science and digital identification solutions company ● Provider of a wide range of branding and information solutions that optimize labor and supply chain efficiency, reduce
Slide 4: Creating superior long-term value
Creating superior long-term value ● Large, growing and diverse end markets, largely anchored in consumer staples ● #1 player in our primary businesses, leveraging strong competitive advantages: ○ Global scale, materials science, process technology and innovation capabilities, operational excellence
Slide 5: Broad exposure to diverse markets, with increasing portfolio strength
Broad exposure to diverse markets, with increasing portfolio strength Sales by End Market(1) Sales by Geography(1) Sales by Category(1) Latin Ind u Am. Fo Du stria Other od rab l/ le Asia-Pac U.S. & HPC China ~30% Canada High- ~45% ~60% value High-value Staples Appare Emerging e l EEMENA(2) Markets
Slide 6: Delivered solid results for the 2020-2025 cycle; 2023-2028 targets
Delivered solid results for the 2020-2025 cycle despite multiple cyclical challenges; leveraging strength of portfolio to deliver our 2023-2028 targets 2020-2025(1) 2023-2028(1) Targets / Results Targets / Results Sales Growth ex. Currency 5%+ 6% 5%+ 3% 6.3% Adj. EBITDA Growth(2) 6.5% 7.5%+ 7.3% (~7
Slide 7: Executing key strategies to deliver GDP+ growth and top quartile returns
Executing key strategies, with proven business resilience, to deliver GDP+ growth and top quartile returns across cycles 1 Drive outsized growth in high-value categories through market-driven innovation 2 Grow profitably in our base businesses 3 Lead at the intersection of the physical and digital 4
Slide 8: Unlocking Value: Expanding High-Value Category exposure
Unlocking Value: Expanding High-Value Category exposure is a key contributor to driving outsized sales growth and margin expansion over the long term Sales by Category 2015 2019 2025 High-value Base ~28% ~33% ~45% 2015 to 2019 2019 to 2025 Starting Point Est. HVC Organic (2015) Growth(1)(2) Mid-sing
Slide 9: Leveraging portfolio strength to help address key industry challenges
Click here to learn more Leveraging the strength of our portfolio to help address key industry challenges Optimizing labor and supply chain Reducing waste and efficiency mitigating loss Advancing sustainability, Helping brands and circularity and consumers better connect transparency August 2026 Inve
Slide 10: Together, our businesses create a unique opportunity for value creation
Together, our businesses create a unique opportunity for significant value creation Materials Solutions Group Group ● Industry leader ● Industry leader ● Stable and diverse end Intelligent Labels ● Relevant data management and digital markets with GDP+ growth ● Industry leader capabilities, with end-
Slide 11: Targeting strong top-line growth over the long term
Targeting strong top-line growth over the long term Acquisitions (accelerate our 5%+ strategies) Sales Growth 1.5+ pts. ~15%+ growth in Ex. Currency Intelligent Labels ~2 pts. outsized growth in high-value categories M&A ~1 pt. grow profitably Intelligent in the base Labels High-value Categories Base
Slide 12: Our long-term financial framework
Our long-term financial framework 5%+ 17%+ Sales Growth Ex. Adj. EBITDA Margin Currency in 2028 Top 10% Quartile(1) Adj. EPS Growth ROTC Note: Long-term targets are annualized and represent a 5-year horizon ending in 2028 (1) Compared to peer group on page 69 of our 2026 Proxy Statement August 2026 I
Slide 13: Disciplined approach to capital allocation
Disciplined approach to capital allocation Strong balance sheet with target leverage ratio that provides ample capacity for investment and lowest WACC over cycles Long-term Capital Uses ~$8B of capital available for deployment 2024-2028 (% of total cap. avail.) ● Investing organically and through M&
Slide 14: Segment Overview
Segment Overview August 2026 Investor Presentation 14
Slide 15: Materials Group
Materials Group 2025 Sales by Product Product Category Label Materials High-value Graphics & Reflectives Categories Performance Materials(1) 38% Other (1) Performance Materials includes: industrial and medical tapes, trade adhesives, and Taylor Adhesives 2025 Financial Snapshot Net Sales $6.1 bil. 20
Slide 16: Materials Group delivers growth and significant returns
Materials Group delivers growth and significant returns Leader in growing self-adhesive label materials industry (~2.5X next largest competitor) Clear and sustainable competitive advantages ● Global scale with 10,000+ converting partners ● Materials science, including vertical integration in adhesive
Slide 17: Outsized growth in high-value categories, supported by secular trends
Continuing to deliver outsized growth in high-value categories, supported by secular trends Specialty Labels Materials Group ● Premiumization in wine, spirits and craft beer High-value Categories(1) ● Aging populations and cold chain logistics (pharma) ● Freshness, multi-use and convenience (reclosu
Slide 18: Solutions Group
Solutions Group 2025 Sales by Product Product Category Base Solutions High-value Intelligent Labels Categories Vestcom 60% Embelex 2022 Financial Snapshot 2025 Net Sales $2.8 bil. 2025 Sales by Geography Est. End Market U.S. & Canada Sales Change Ex. Currency 5-YR CAGR 12.7% Europe Asia Pacific Adj.
Slide 19: Solutions Group offers significant profitable growth opportunity
Solutions Group offers significant profitable growth opportunity as we unlock new value for customers Leader in global branding and identification solutions that help address key industry challenges Demonstrated competitive advantages ● Global scale and footprint; vertically integrated ● Innovation lea
Slide 20: Unlocking large, expanding, untapped Intelligent Label end markets
Unlocking large, expanding, untapped and attractive Intelligent Label end markets ⬤ Total market est. ⬤ IL addressable market est. 200 (billions of units) 45 20 60 ⬤ Current IL adoption est. 10 5 10 Apparel General Beauty & Food Logistics Auto Healthcare Retail Personal Care Attractive 1. Significant
Slide 21: Vertical integration across the RFID technology ecosystem
Our vertical integration across the RFID technology ecosystem helps us drive adoption and create value Base Media Service Print/ Readers/ Software/ Solutions/ Chips Inlays materials conversion bureau encode infra. SaaS Services Chip Inlay Materials Inlay Integration / Data Printer Digital ID Categor
Slide 22: Our leading position in Intelligent Labels is delivering significant growth
Our leading position in Intelligent Labels is delivering significant growth Our Competitive Advantages: ● Industry-leading innovation 12 %rowth ○ Broad product and IP portfolio ~ ales G -’25) cS ‘19 $0.9B ○ Experienced team rg ani AGR ( O RC ○ State-of-the-art digital cloud platform and data 6-Y mana
Slide 23: Embelex: helping brands and consumers better connect
Click here to learn more Embelex: helping brands and consumers better connect Competitive Strong growth platform Advantages ~10% Org. Sales CAGR 6-YR (‘19-’25) Global scale Customization and Elevating Brand Consumer 2019 2020 2021 2022 2023 2024 2025 Personalization Identity Experience Value Creatio
Slide 24: Vestcom productivity and media solutions for the retail shelf-edge
Vestcom provides industry-leading productivity and 2025 Sales by End Market media solutions for the retail shelf-edge, with strong data management capabilities DOLLAR STORES ● Mid-single digit organic growth with strong margins ● Consumer engagement solutions enable sales lift ● Delivering strong RO
Slide 25: Appendix A
Appendix A Select slides from Q2 2026 earnings release (all forward-looking statements as of July 30, 2026) and supplemental information August 2026 Investor Presentation 25
Slide 26: Delivered strong sales, earnings, and cash flow growth
Delivered strong sales, earnings, and cash flow growth Strong Q2 Results Strength & Durability of Franchise Adj. EPS (non-GAAP) of $2.89, well above expectations ● High-value categories (HVC) organic sales up and up 19% vs. prior year mid-single digits ● Organic sales growth (non-GAAP) of 8%, driven
Slide 27: Second quarter 2026 financial review
Second quarter 2026 financial review Reported operating income of $314 mil. Net sales of $2.5 bil. ● Adj. EBITDA margin of 17.1%, up 50 bps ● Adj. operating margin (non-GAAP) of 13.6%, up 70 bps Sales change ex. currency (non-GAAP) up 8.9% Organic sales growth of 7.6% Strong adj. FCF of $365 mil. Ret
Slide 28: Second Quarter 2026 Results: Materials Group
Second Quarter 2026 Results Materials Group 2025 Sales by Product Product Category Reported sales increased 15.9% to $1.8 bil. Label Materials Sales up 9.7% organically High-value Graphics & Reflectives ● Volume/mix growth of high single digits and Categories Performance Materials price up low single
Slide 29: Second Quarter 2026 Results: Solutions Group
Second Quarter 2026 Results Solutions Group 2025 Sales by Product Product Category Reported sales decreased 0.5% to $667 mil. Base Solutions Sales up 2.6% organically High-value Intelligent Labels ● High-value categories up low single digits Categories Vestcom ● Base categories up low single digits
Slide 30: Enterprise-wide Intelligent Labels
Enterprise-wide Intelligent Labels 2025 Sales by Category Overall Results: ● Q2 sales up low single digits on organic basis; in line with our expectations ○ Apparel and general retail up approximately 10% on apparel program expansions and recovery in general retail ○ Food and logistics down double d
Slide 31: FY 2026 EPS Guidance
FY 2026 EPS Guidance (as of July 30, 2026) Low High Reported EPS $9.40 $9.70 Est. other items & restructuring costs ~$0.60 ~$0.60 Adjusted EPS $10.00 $10.30 For FY 2026, anticipate adj. EPS of $10.00-$10.30 ● Reported sales growth of 5-6% and organic sales growth of 3-4% ○ ~1.5% benefit from currency
Slide 32: Economic Conditions Dashboard
Economic Conditions Dashboard July 2026 Outlook and Change vs. Jan’26 Outlook U.S. Consumer Sentiment 2020 2021 2022 2023 2024 2025 2026 Source: S&P Global Market Intelligence Source: University of Michigan August 2026 Investor Presentation 32
Slide 33: High-value categories are a key driver for enterprise growth
High-value categories are a key driver for enterprise growth and portfolio strength HVC mix expansion continues, up to ~45% of sales in 2025, with a mid-single digit organic growth CAGR ~12 points of expansion since 2019 driven by a combination of organic growth and acquisitions ● HVC have outperfor
Slide 34: Disciplined capital allocation; strong balance sheet
Disciplined approach to capital allocation; strong balance sheet with ample capacity Q2 2026 Leverage Debt / Liquidity Considerations Total Debt Outstanding $3.7B ● 2.3x simple leverage, within our 2-3x target net leverage ratio Cash and cash equivalents $0.2B ● Growing dividend in-line with earning
Slide 35: Our 2030 Sustainability Goals
Our 2030 Sustainability Goals Baseline (2015) 2025 Results(1) Satisfy the recycling, composting or reuse requirements of all single-use consumer packaging and apparel with our products and solutions. 82% Deliver innovations Solutions Group (Apparel Solutions Only) 81% that advance the circular 100%
Slide 36: Appendix B
Appendix B Reconciliation of Non-GAAP Financial Measures from GAAP August 2026 Investor Presentation 36
Slide 37: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures as defined by SEC rules. We report our financial results in conformity with accounting principles generally accepted in the United States of America, or GAAP, and also communicate with investors using cert
Slide 38: Sales Change Ex. Currency and Organic Sales Change – Avery Dennison
Sales Change Ex. Currency and Organic Sales Change – Avery Dennison ($ in millions, except %) 2020-2025 2023-2025 Total Company 2019 2020 2021 2022 2023 2024 2025 1H‘26 5-Yr CAGR 2-Yr CAGR Net sales $ 7,070.1 $ 6,971.5 $ 8,408.3 $ 9,039.3 $ 8,364.3 $ 8,755.7 $ 8,855.5 $ 4,761.4 Net sales change (1.2
Slide 39: Sales Change Ex. Currency and Organic Sales Change – Materials Group
Sales Change Ex. Currency and Organic Sales Change – Materials Group ($ in millions, except %) 2020-2025 Materials Group 2019 2020 2021 2022 2023 2024 2025 1H‘26 5-Yr CAGR Net sales $ 5,419.8 $ 5,340.6 $ 6,206.5 $ 6,495.1 $ 5,811.3 $ 6,013.0 $ 6,093.3 $ 3,445.4 Net sales change (2.3)% (1.5)% 16.2% 4
Slide 40: Sales Change Ex. Currency and Organic Sales Change – Solutions Group
Sales Change Ex. Currency and Organic Sales Change – Solutions Group ($ in millions, except %) 2020-2025 Solutions Group 2019 2020 2021 2022 2023 2024 2025 1H‘26 5-Yr CAGR Net sales $ 1,650.3 $ 1,630.9 $ 2,201.8 $ 2,544.2 $ 2,553.0 $ 2,742.7 $ 2,762.2 $ 1,316.0 Net sales change 2.3% (1.2)% 35.0% 15.
Slide 41: Adjusted Operating Margin and EBITDA — Avery Dennison
Adjusted Operating Margin and EBITDA — Avery Dennison 2020-2025 2023-2025 ($ in millions, except %) 2015 2019 2020 2021 2022 2023 2024 2025 1H‘26 5-Yr CAGR 2-Yr CAGR Net sales $ 5,966.9 $ 7,070.1 $ 6,971.5 $ 8,408.3 $ 9,039.3 $ 8,364.3 $ 8,755.7 $ 8,855.5 $ 4,761.4 Reconciliation of adjusted EBITDA
Slide 42: Adjusted Operating Margin and EBITDA — by Segment
Adjusted Operating Margin and EBITDA — by Segment ($ in millions) ($ in millions) Materials Group 2025 1H‘26 Solutions Group 2025 1H‘26 Net Sales $ 6,093.3 $ 3,445.4 Net Sales $ 2,762.2 $ 1,316.0 Operating income before interest expense, other Operating income before interest expense, other $ 890.6
Slide 43: Adjusted EPS – Avery Dennison
Adjusted EPS – Avery Dennison 2020-2025 2023-2025 2020 2021 2022 2023 2024 2025 1H‘26 5-Yr CAGR 2-Yr CAGR Net income per common share, assuming dilution $ 6.61 $ 8.83 $ 9.21 $ 6.20 $ 8.73 $ 8.79 $ 4.85 Non-GAAP adjustments per common share: Restructuring charges and other items(1) $ 0.48 $ 0.05 $ (0
Slide 44: Adj. EBITDA and adj. EPS change ex. currency
Adj. EBITDA and adj. EPS change ex. currency – Avery Dennison 2020-2025 2023-2025 ($ in millions, except %) 2020 2021 2022 2023 2024 2025 5-Yr CAGR 2-Yr CAGR Adj. EBITDA (non-GAAP) $ 1,068.1 $ 1,308.4 $ 1,364.1 $ 1,262.2 $ 1,434.3 $ 1,452.0 Adj. EBITDA change vs. PY 22.5% 4.3% (7.5)% 13.6% 1.2% 6.3%
Slide 45: Return on total capital (ROTC) – Avery Dennison
Return on total capital (ROTC) – Avery Dennison ($ in millions) 2025 Net income $ 688.0 Interest expense, net of tax benefit 100.7 Intangible amortization, net of tax benefit 69.0 Effective tax rate 25.6% Net income, excluding interest expense and intangible amortization, net of tax benefit $ 857.7 Tot
Slide 46: Net Debt to Adjusted EBITDA – Avery Dennison
Net Debt to Adjusted EBITDA – Avery Dennison QTD (In millions, except ratio) 3Q25 4Q25 1Q26 2Q26 Reconciliation of adjusted EBITDA from GAAP: Net income $ 166.3 $ 166.4 $ 168.1 $ 204.1 Other expense (income), net 16.7 40.4 17.8 21.1 Interest expense 33.3 37.2 35.6 35.9 Other non-operating expense (i
Slide 47: Adjusted Free Cash Flow – Avery Dennison
Adjusted Free Cash Flow – Avery Dennison ($ in millions) 2025 1H‘26 Net cash provided by operating activities $ 881.4 $ 544.7 Purchases of property, plant and equipment (169.0) (67.5) Purchases of software and other deferred charges (31.4) (13.9) Proceeds from sales of property, plant and equipment
Slide 48: Thank you.
Thank you. averydennison.com #MakingPossible © 2026 Avery Dennison Corporation. All rights reserved. The “Making Possible” tagline, Avery Dennison and all other Avery Dennison brands, product names and codes are trademarks of Avery Dennison Corporation. All other brands or product names are trademar