Slide 1: Third Quarter 2024 Financial Review and Analysis
Third Quarter 2024 Financial Review and Analysis (preliminary, unaudited) October 23, 2024 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. October 23, 2024 Financial Review and Analysis Third Quarter 2024 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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, a
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. 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 4: Delivered another strong quarter with Q3 adj. EPS up 9%, above expectations
Delivered another strong quarter with Q3 adj. EPS up 9%, above expectations Materials Group delivered solid sales growth and strong margins ● Label Materials volume/mix up mid-single digits ● Strong adj. EBITDA margin (non-GAAP) of 17%; moderated sequentially, as expected (seasonality) Solutions Gro
Slide 5: Third Quarter 2024 Review
Third Quarter 2024 Review Reported operating income of $264 mil. Net sales of $2.2 bil. ● Adj. EBITDA (non-GAAP) of $358 mil., up 6% vs. PY ● Adj. EBITDA margin of 16.4%, up 40 bps Sales change ex. curr. (non-GAAP) up 5% Organic sales change (non-GAAP) up 4% YTD adj. FCF of $420 mil., up $46 mil. vs
Slide 6: Our leading position in Intelligent Labels is delivering significant growth
Our leading position in Intelligent Labels is delivering significant growth Our Competitive Advantages ‘24 YTD up mid-teens ● Industry-leading innovation ○ Broad product and IP portfolio Experienced team % R wide 7 C ise- ~1ic Saleesnterpr ○ AG ~$850M ○ State-of-the-art digital cloud platform and n r
Slide 7: Quarterly sales trend analysis
Quarterly sales trend analysis 3Q23 4Q23 1Q24 2Q24 3Q24 Reported Sales Change (9%) 4% 4% 7% 4% Organic Sales Change(1) (11%) 1% 3% 7% 4% Acquisitions/Divestitures 1% 1% 1% 1% 0.3% Sales Change Ex. Currency(1)(2) (10%) 3% 4% 8% 5% Currency Translation 1% 2% 0% (1%) (1%) Reported Sales Change(2) (9%)
Slide 8: Quarterly sales trend analysis (cont.)
Quarterly sales trend analysis (cont.) Organic Sales Change 3Q23 4Q23 1Q24 2Q24 3Q24 Materials Group (16%) (4%) 2% 6% 4% Solutions Group 1% 14% 6% 11% 6% Total Company (11%) 1% 3% 7% 4% Total Company (10%) 3% 4% 8% 5% Sales Change Ex. Currency October 23, 2024 Financial Review and Analysis Third Qua
Slide 9: Third quarter sales and margin comparisons
Third quarter sales and margin comparisons Sales Change Reported Ex. Currency Organic Materials Group 3% 4% 4% Solutions Group 7% 7% 6% Total Company 4% 5% 4% Reported Adj. EBITDA Margin Operating Margin (non-GAAP) 3Q24 3Q23 3Q24 3Q23(1) Materials Group 14.5% 12.1% 17.0% 17.0% Solutions Group 9.7% 7
Slide 10: Third Quarter 2024 Results: Materials Group
Third Quarter 2024 Results Materials Group 2023 Sales by Product Product Category Reported sales increased 3% to $1.5 bil. Label Materials Sales up 4% ex. currency and organically High-value Categories Graphics & Reflectives ● Label Materials up low-to-mid single digits on organic basis 36% Performan
Slide 11: Third Quarter 2024 Results: Solutions Group
Third Quarter 2024 Results Solutions Group 2023 Sales by Product Product Category Reported sales increased 7% to $686 mil. Base Solutions Sales up 7% ex. currency and 6% organically High-value Intelligent Labels (IL) ● Solutions high-value categories up low single Categories digits ex. currency 60%
Slide 12: 2024 EPS Guidance
2024 EPS Guidance Previous Updated Reported EPS $8.75 - $8.95 $8.75 - $8.90 Est. restructuring costs ~$0.23 ~$0.25 Est. other items, incl. impact of venture investments ~$0.32 ~$0.35 Adjusted EPS $9.30 - $9.50 $9.35 - $9.50 Full-year 2024 contributing factors ● Reported sales growth of 5.0% to 5.5%
Slide 13: averydennison.com #MakingPossible
averydennison.com #MakingPossible © 2024 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 trademarks of their