Avery Dennison : Investor Presentation

About this update from Avery Dennison Corporation

Investor Presentation August 2026 Investor Presentation 1 August 2026 Avery Dennison at a glance Click here to learn more 2025 Net Sales Recognized industry leader 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 waste, advance sustainability, circularity and transparency, and better connect brands and consumers Operations in more than 50 countries with ~35,000 employees Intelligent Labels $8.9 Billion Sales by Segment Solutions Group Materials Group 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 Strong foundation in our base businesses, delivering consistent results and strong cash flow Catalysts for strong growth in high-value categories and emerging markets Innovative and productivity-driven culture; engaged global team Strong balance sheet and disciplined capital allocation strategy 4 Proven track record of consistently delivering strong results; multiple levers/paths to achieving superior long-term EVA growth and returns Broad exposure to diverse markets, with increasing portfolio strength Other Asia-Pac Latin Am. ~60% Staples China EEMENA (2) ~30% Emerging Markets U.S. & Canada Western Europe Apparel HPC Industrial/ Durable Food Sales by End Market (1) Sales by Geography (1) Sales by Category (1) High- value High-value up ~12 pts. vs. 2019 ~45% Base Logistics Healthcare Oth. Non- Durable Pharma Beverage Estimated FY 2025 sales by end market EEMENA = Eastern Europe, Middle East, North Africa 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) Targets / Results Sales Growth ex. Currency 5%+ 6% Adj. EBITDA Growth (2) 6.5% 6.3% (~7% ex. curr.) Adj. EBITDA margin 16%+ 16.4% in 2025 Adjusted EPS Growth 10% 6% (~7% ex. curr.) ROTC (non-GAAP) 18%+ 15% in '25 2023-2028 (1) Targets / Results 5%+ 3% 7.5%+ 7.3% 17%+ in 2028 16.4% in 2025 10% 10% Top Ǫtle (3) Top Decile (3) Percentages for targets reflect five-year compound annual growth rates, with the base periods set as 2020 and 2023, respectively. Percentages for results reflect five-year compound annual growth rates for 2020 targets and two-year compound growth rates for 2028 targets. Although adjusted EBITDA growth was not one of our original financial targets, it was implied by our sales growth ex. currency and adjusted EBITDA margin targets. Compared to peer group on page 69 of our 2026 Proxy Statement 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 Effectively allocate capital and relentlessly focus on productivity 5 Lead in an environmentally and socially responsible manner 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 High-value Base 2015 2019 2025 ~28% ~33% Starting Point (2015) AVY Adj. EBITDA Margin: 12.5% August 2026 Investor Presentation ~45% Est. HVC Organic Growth (1)(2) 2015 to 2019 Mid-single digit CAGR AVY Adj. EBITDA Margin ~2.5x wt. avg. GDP 14.2% in '19 2019 to 2025 Mid-single digit CAGR ~2.5x wt. avg. GDP 16.4% in '25 8 (1) Estimated organic growth and GDP calculated using the 4-YR period ending in 2019 and the 6-YR period ending in 2025 Click here to learn more Leveraging the strength of our portfolio to help address key industry challenges Optimizing labor and supply chain efficiency Advancing sustainability, circularity and transparency Reducing waste and mitigating loss Helping brands and consumers better connect Together, our businesses create a unique opportunity for significant value creation Materials Group Solutions Group Industry leader Stable and diverse end markets with GDP+ growth Balance of growth, margin and capital efficiency drives strong returns, EVA and cash flow Intelligent Labels Industry leader Significant growth; large TAM with low penetration Uniquely positioned, leveraging advantages of Materials and Solutions Multi-decade growth opportunity with strong margins Industry leader Relevant data management and digital capabilities, with end-user access Solid growth and margins with upside as portfolio continues to shift toward high-value categories Targeting strong top-line growth over the long term Base High-value Categories Intelligent Labels 1.5+ pts. ~15%+ growth in Intelligent Labels strategies) M&A Acquisitions (accelerate our ~2 pts. outsized growth in high-value categories 5%+ Sales Growth Ex. Currency ~1 pt. grow profitably in the base Note: Growth estimates represent contributions to annualized total company sales growth ex. currency over the horizon; high-value categories exclude Intelligent Labels, which is represented separately. Our long-term financial framework 5%+ Sales Growth Ex. Currency 17%+ Adj. EBITDA Margin in 2028 Ǫuartile (1) Top ROTC 10% Adj. EPS Growth Note: Long-ter m targets are a nnualized and represent a 5-year horizon ending in 2028 (1) Compared to peer group on page 69 of our 2026 Proxy Statement Disciplined approach to capital allocation Long-term Capital Uses (% of total cap. avail.) Capex/Restructuring 25-30% Dividends ~20% Buyback/M&A 50-55% Strong balance sheet with target leverage ratio that provides ample capacity for investment and lowest WACC over cycles ~$8B of capital available for deployment 2024-2028 Investing organically and through M&A to deliver superior returns across cycles Approx. half of our capital available for buyback/M&A; returns and EVA focused Targeting M&A opportunities that can accelerate our strategies and further upgrade our portfolio Continuing to grow our dividend Committed to maintaining strong credit rating, targeting a net debt to adjusted EBITDA ratio (non-GAAP) of ~2-3x August 2026 Investor Presentation 14 Segment Overview Product Category Materials Group High-value Categories 38% 2025 Sales by Product Label Materials Graphics & Reflectives Performance Materials (1) Other (1) Performance Materials includes: industrial and medical tapes, trade adhesives, and Taylor Adhesives Net Sales Sales Change Ex. Currency 5-YR CAGR Adj. EBITDA Margin $6.1 bil. 3.2% 17.4% 2025 Financial Snapshot Emerging Markets 39% Est. End Market 2025 Sales by Geography U.S. & Canada Western Europe E. Europe & MENA Asia Pacific Latin America 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 adhesives, and process technology capabilities Industry-leading innovations enabling sustainability and functionality Strong growth catalysts driving GDP+ growth Premiumization of packaging E-commerce and supply chain transparency Strong presence in emerging markets Digitization of packaging (Intelligent Labels) Disciplined approach to profitable growth in base business and relentless focus on productivity and capital efficiency Continuing to deliver outsized growth in high-value categories, supported by secular trends Specialty Labels Materials Group High-value Categories (1) Premiumization in wine, spirits and craft beer Aging populations and cold chain logistics (pharma) Freshness, multi-use and convenience (reclosure) Intelligent Labels Delivering growth through vast converter network MSD (2) Org. sales CAGR over last decade Based on FY 2025 sales MSD = mid single digit % 38% to enable broad supply chain adoption Expansion of Intelligent Labels in categories such as general retail, food and logistics Graphics & Reflective Solutions Personalization and premiumization in cars (wraps) Infrastructure projects (road signage) Performance Materials Lightweighting, noise and vibration dampening Electrification, incl. functional materials for EVs 2022 Financial Snapshot High-value Categories 60% Product Category 2025 Financial Snapshot Net Sales $2.8 bil. Sales Change Ex. Currency 5-YR CAGR 12.7% Adj. EBITDA Margin 17.3% Solutions Group 2025 Sales by Product Base Solutions Intelligent Labels Vestcom Embelex Est. End Market 2025 Sales by Geography U.S. & Canada Europe Asia Pacific Latin America 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 leader in high-value categories, with 1,500+ patents and pending patent applications in Intelligent Labels Industry-leading capabilities helping drive adoption of digital identification technology in new categories High-value categories are catalysts for strong growth Expanding opportunity in Intelligent Labels (new categories and use cases) Leading Embelex platform helping brands and consumers better connect Strong platform in Vestcom through proprietary in-store productivity and media solutions 19 Disciplined approach to profitable growth in the base business provides key resources for growth in high-value categories Unlocking large, expanding, untapped and attractive Intelligent Label end markets 45 20 10 200 60 5 10 Total market est. IL addressable market est. (billions of units) Current IL adoption est. Apparel General Retail Beauty & Personal Care Significant TAM Food Logistics Auto Healthcare Expanding TAM Low Penetration Attractive Market Growth Factors 350+ bil. unit opportunity, currently across 7 distinct markets 20 bil. units added since '21; due to use case expansion in more established Apparel/General Retail Apparel most penetrated at ~40%; low penetration with significant opportunity in other categories Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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