avery dennison corporate proﬁle · avery dennison corporate proﬁle ray stanton (“stan”)...

Avery DennisonCorporate Profile

Avery Dennison Corporate Profile

Ray Stanton (“Stan”) Avery invented the world’s first self-adhesive label as a way to merchandise objects. In 1935, he founded Avery Adhesives in downtown Los Angeles and, in 1990, the company merged with Dennison Manufacturing to form Avery Dennison.

Over the past 80+ years, we have grown from one bright idea into a global Fortune 500® corporation that continues to advance quality and innovation in materials science.

Our Story

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Avery Dennison is a global materials science and manufacturing company specializing in the design and manufacture of a wide variety of labeling and functional materials. Our products are used in nearly every major industry.

● Corporate headquarters in Glendale, California● Operations in more than 50 countries with approximately 30,000 employees worldwide● Sales of $7.2 billion in 2018; Fortune rank: 427

Who We Are

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Our Businesses at a Glance

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• Label and Packaging Materials• Graphics Solutions• Reflective Solutions

• Tickets, Tags, Labels, and Embellishments for Retail Apparel• Radio-Frequency Identification• Printer Solutions

• Performance Tapes• Adhesives• Fastener Solutions• Medical Solutions

$4,851

$1,613.

$695

2018 Sales (in millions)Label and Graphic Materials

Retail Branding and Information Solutions

Industrial and Healthcare Materials


Label and Graphic Materials

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2018 Sales $4.9 bil.

Organic Sales Change 5.5%

Adjusted Operating Margin 13.0%

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Retail Branding and Information Solutions

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2018 Sales $1.6 bil.



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Industrial and Healthcare Materials

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2018 Sales $695 mil.



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Our Competitive Advantages

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● Global scale; 180+ operating locations

○ Recognized industry leader with a global footprint, including a strong presence in emerging markets, and economies of scale

● Materials science capabilities focused on pressure-sensitive adhesives

○ R&D and innovation breakthroughs that anticipate and meet market needs

● Innovative process technology

● Operational and commercial excellence


Our Values

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At Avery Dennison, we’re a force for good embedded in industries and communities worldwide.

● Sustainable Products: We invent products and processes that make our customers’ operations and products more sustainable.

● Corporate Social Responsibility: The Avery Dennison Foundation advances the causes of education, sustainability, and women’s empowerment in the communities where our employees live and work.

● Diversity and Inclusion: We’re creating an inclusive environment, with a strong focus on gender diversity.

How We Are Creating Positive Change

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Our 2025 Sustainability Goals

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We established sustainability goals for 2025 in eight key areas.

Some highlights of our progress through the end of 2018:

● 87% of our paper came from sources with a certified claim, with 76% of our face paper Forest Stewardship Council®-certified.

● We’ve reduced our greenhouse gas emissions by nearly 25% cumulatively, compared to our 2015 baseline.

● 93% of our operations were landfill-free and 64% of the waste from our operations was recycled in 2018.


How We Are Creating Value for all our Stakeholders

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(1) Measure of stock delivery flexibility for Label and Packaging Materials.(2) Energy Intensity measured in megawatt hours per million square meters produced in the Material businesses.

Customers Employees Community Shareholders• Deliver industry leading service,

quality, and innovation• Engage and develop our people• Maintain a safe working

environment

• Reduce greenhouse gas emissions

• Responsibly source paper, films, and chemicals

• Eliminate waste

• Deliver superior total shareholder return

• Strong corporate governance

© 2018 Avery Dennison Corporation. All rights reserved. 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 respective owners. Fortune 500® is a trademark of Time, Inc. Branding and other information on any samples depicted is fictitious. Any resemblance to actual names is purely coincidental.

Appendix


Our Leadership Team

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Mitch ButierPresident,Chief Executive Officer and Chairman

Greg LovinsSenior Vice President andChief Financial Officer

Anne HillSenior Vice Presidentand Chief Human Resources Officer

Sue MillerSenior Vice President,General Counsel andSecretary

Danny AlloucheVice PresidentStrategy and CorporateDevelopment

Georges GravanisPresidentLabel andGraphic Materials

Deon StanderVice President andGeneral ManagerRetail Branding andInformation Solutions

Francisco MeloVice President andGeneral ManagerGlobal RFID

Rishi PardalVice President andGeneral ManagerApparel SolutionsRetail Branding and Information Solutions

Jeroen DiderichVice President andGeneral ManagerLabel and GraphicMaterials Europe

Nick TucciVice President andGeneral ManagerLabel and Graphic Materials North America

Kamran KianVice PresidentGlobal Operations andSupply ChainLabel and GraphicMaterials

Hassan RmaileVice PresidentGeneral ManagerGlobal Graphics and Reflective Solutions and Vice President Global Technology VenturesLabel and Graphic Materials

Nick ColistoVice President andChief Information Officer


Company Videos

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● Company Vision: Avery Dennison Vision Video

● Our Values: “Eight Values. One Team.”

● Sustainability: “A Force For Good”

● Careers Video: “You Make the Difference.”

● Company History: “Gentle Giant”

https://www.youtube.com/watch?v=TPkhKzwYzMg

https://www.youtube.com/watch?v=okzSiSfNzJ0

https://www.youtube.com/watch?v=nsNyrRL4Y2w

https://www.youtube.com/watch?v=Bk21p17P7tM

https://www.youtube.com/watch?v=MQffq4NiK1k


Use of Non-GAAP Financial Measures

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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 certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. These non-GAAP financial measures are intended to supplement presentation of our financial results that are prepared in accordance with GAAP. Based upon feedback from investors and financial analysts, we believe that the supplemental non-GAAP financial measures we provide are useful to their assessment of our performance and operating trends, as well as liquidity.

Our non-GAAP financial measures exclude the impact of certain events, activities or strategic decisions. The accounting effects of these events, activities or decisions, which are included in the GAAP financial measures, may make it difficult to assess our underlying performance in a single period. By excluding the accounting effects, both positive or negative, of certain items (e.g., restructuring charges, legal settlements, certain effects of strategic transactions and related costs, losses from debt extinguishments, gains or losses from curtailment or settlement of pension obligations, gains or losses on sales of certain assets, and other items), we believe that we are providing meaningful supplemental information that facilitates an understanding of our core operating results and liquidity measures. These non-GAAP financial measures are used internally to evaluate trends in our underlying performance, as well as to facilitate comparison to the results of competitors for a single period. While some of the items we exclude from GAAP financial measures recur, they tend to be disparate in amount, frequency, or timing.

We use the following non-GAAP financial measures in this presentation:

• Sales change ex. currency refers to the increase or decrease in sales excluding the estimated impact of foreign currency translation and currency adjustment for transitional reporting of highly inflationary economies (Argentina). The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior period results translated at current period average exchange rates to exclude the effect of currency fluctuations.

• Organic sales change refers to sales change ex. currency, excluding the estimated impact of product line exits, acquisitions and divestitures, and, where applicable, the extra week in our fiscal year.

We believe that sales change ex. currency and organic sales change assists investors in evaluating the sales change from the ongoing activities of our businesses and enhance their ability to evaluate our results from period to period.

• Adjusted operating income refers to income before taxes, interest expense, other non-operating expense, and other expense, net.

• Adjusted operating margin refers to adjusted operating income as a percentage of sales.

We believe that adjusted operating margin assists investors in understanding our core operating trends and comparing our results with those of our competitors.


Organic Sales Change by Segment

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(1) Totals may not sum due to rounding and other factors.


Adjusted Operating Margin – LGM

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(1) In the first quarter of 2018, we adopted Accounting Standards Update (ASU) No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, on a retrospective basis. This ASU requires employers with defined benefit plans to present the components of net periodic benefit cost other than service cost, outside of operating income. Prior year results have been reclassified as required by the guidance.


Adjusted Operating Margin – RBIS

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(1) In the first quarter of 2018, we adopted Accounting Standards Update (ASU) No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, on a retrospective basis. This ASU requires employers with defined benefit plans to present the components of net periodic benefit cost other than service cost, outside of operating income. Prior year results have been reclassified as required by the guidance.


Adjusted Operating Margin – IHM

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(1) In the first quarter of 2018, of 2018, we adopted Accounting Standards Update (ASU) No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, on a retrospective basis. This ASU requires employers with defined benefit plans to present the components of net periodic benefit cost other than service cost, outside of operating income. Prior year results have been reclassified as required by the guidance.


Contact Us

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Have a question or comment regarding this corporate profile?Contact us by sending an email to [email protected]

Presentation current as of 18 March 2019.

mailto:[email protected]

avery dennison corporate proﬁle · avery dennison corporate proﬁle ray stanton (“stan”)...

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