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Classification: Avery Dennison - Public 12021 Avery Dennison Corporate Profile
Avery Dennison Corporate Profile2021
Classification: Avery Dennison - Public 22021 Avery Dennison Corporate Profile
Presentation OverviewOur StoryWho We AreOur BusinessesOur Competitive AdvantagesOur ValuesOur 2030 Sustainability GoalsCreating Value for All Our StakeholdersAppendix
Classification: Avery Dennison - Public 32021 Avery Dennison Corporate Profile
Our Story
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 86 years, we have grown from one bright idea into a global Fortune 500® corporation that continues to advance quality and innovation in materials science.
3
Classification: Avery Dennison - Public 42021 Avery Dennison Corporate Profile
Who We Are
Avery Dennison is a global materials manufacturer of branding and information labeling solutions and functional materials for consumer goods, apparel, food, logistics, industrial and healthcare industries.
Number of employees worldwide
More than 32,000
Fortune rank as of the end of 2020
435
Operations in more than
50 countries
Sales in 2020
$7 billion
Classification: Avery Dennison - Public 52021 Avery Dennison Corporate Profile
Our Businesses at a Glance
Label and Graphic Materials● Label and Packaging Materials● Graphics Solutions● Reflective Solutions
Retail Branding andInformation Solutions● Tickets, Tags, Labels, and
Embellishments for Retail Apparel● Radio-Frequency Identification● Printer Solutions
Industrial andHealthcare Materials● Performance Tapes● Adhesives● Fastener Solutions● Medical Solutions
$4.7 bil. $1.6 bil. $626 mil.
2020 SALES
Classification: Avery Dennison - Public 62021 Avery Dennison Corporate Profile
2020 Sales by Product
Base (Label & Graphics)
Specialty/Durables Labels
Specialty Graphics
Reflectives
2020 Sales by Geography
U.S. & Canada
Western Europe
E. Europe & MENA
Asia Pacific
Latin America
High-valueCategories
~32%
EmergingMarkets
~40% Revenue $4.7 bil.
Sales Change Ex. Currency 5-YR CAGR 4.0%
Adj. EBITDA Margin 17.3%
End
Mar
ket
Prod
uct C
ateg
ory
2020 Financial Snapshot
Label and Graphic Materials
Classification: Avery Dennison - Public 72021 Avery Dennison Corporate Profile
2020 Sales by Geography
U.S. & Canada
Europe
Asia Pacific
Latin America
2020 Sales by Product
Base Tags & Labels
Intelligent Labels/RFID
Ext. Embellishments
AIDC(1) Solutions
Sales $1.6 bil.
Sales Change Ex. Currency5-YR CAGR 3.3%
Adj. EBITDA Margin 14.7%
2020 Financial Snapshot
High-valueCategories
~37%
Estim
ated
End
Mar
ket
Prod
uct C
ateg
ory
(1) Automatic Identification and Data Capture (“AIDC”)
Retail Branding andInformation Solutions
Classification: Avery Dennison - Public 82021 Avery Dennison Corporate Profile
2020 Sales by Product
Automotive
Other Industrial
Healthcare
Retail
2020 Sales by Geography
U.S. & Canada
Europe
Asia Pacific
Latin America
High-valueCategories
~74%
Revenue $626 mil.
Sales Change Ex. Currency 5-YR CAGR 5.4%
Adj. EBITDA Margin 14.9%
2020 Financial Snapshot
Estim
ated
End
Mar
ket
Prod
uct C
ateg
ory
Industrial andHealthcare Materials
Classification: Avery Dennison - Public 92021 Avery Dennison Corporate Profile
Our Competitive Advantages
● Global scale; 180+ operating locationsRecognized industry leader with a global footprint, including a strong presence in emerging markets
● Materials science capabilities focused on pressure-sensitive adhesivesR&D and innovation breakthroughs that anticipate and meet market needs
● Innovative process technology● Operational and commercial excellence● Industry-leading innovations enabling
functionality and sustainability
9February 2020 Avery Dennison Corporate Profile
Classification: Avery Dennison - Public 102021 Avery Dennison Corporate Profile
Our Values
IntegrityWe are driven by
doing the right thing.Always.
External FocusWe get out to
get better.
SustainabilityWe are focused on the long-term health of our business, planet, and
communities.
DiversityWe gain strengthfrom diverse ideas
and inclusive teams.
TeamworkWe are better when
we work together and put others ahead of
ourselves.
InnovationWe use imagination
and intellect to create new possibilities.
CourageWe are brave in the
face of adversity andthe unknown.
ExcellenceWe expect the bestfrom ourselves and
each other.
Classification: Avery Dennison - Public 112021 Avery Dennison Corporate Profile
Deliver innovations that advance the circular
economy
Reduce our environmental impact in operations and
supply chain
Make a positive social impact by enhancing the livelihood of our people and communities
Our 2030 sustainability goals were developed based on careful analysis of what is most important for our business and stakeholders, and they include the areas where we can make the greatest difference. We are working toward a deforestation-free future and measuring against Scope 3 standards for GHG emissions, with an ambition of net zero by 2050.
To learn more, visit averydennison.com/sustainability.
2030 Sustainability Goals
Classification: Avery Dennison - Public 122021 Avery Dennison Corporate Profile
Making a Material Difference
Sustainable ProductsWe invent products and processes that make our customers’ operations and products more sustainable.
We are a force for good embedded in industries and communities worldwide.
Corporate Social ResponsibilityThe Avery Dennison Foundation advances the causes of education, sustainability, and women’s empowerment in the communities where our employees live and work.
Diversity and InclusionWe’re creating an inclusive environment, with a strong focus on gender diversity. We’re also sharpening our focus on racial/ethnic workforce diversity, particularly in the U.S
Classification: Avery Dennison - Public 132021 Avery Dennison Corporate Profile
Employees Customers Communities Shareholders
173%
103%
AVY
S&P 500
Employee Engagement
Women Manager+
Vitality Index
Service Flexibility
Cum. GHG% Reduction
% Certified Paper
Creating Value For All Our Stakeholders
• Engage and develop our people
• Foster a safe, diverse and inclusive workplace
• Deliver industry leading service, quality, and innovation
• Reduce greenhouse gas emissions
• Responsibly source paper, films, and chemicals
• Eliminate waste
• Deliver superior total shareholder return
• Strong corporate governance
Cumulative TSR(5-year)
82%+
Scop
e 1
& 2
Classification: Avery Dennison - Public 142021 Avery Dennison Corporate Profile
Appendix
Classification: Avery Dennison - Public 152021 Avery Dennison Corporate Profile
Mitch ButierChairman, President & CEO
Deon StanderVP/GM, RBIS
Danny AlloucheVP, Strategy & Corporate Development
Nick ColistoVP, CIO
Francisco MeloVP/GM, Avery Dennison Smartrac, RBIS
Hassan RmaileVP/GM, LGM EMENA
Kamran KianVP, Supply Chain & Operations, LGM
Jeroen DiderichVP/GM, LGM North America
Anil SharmaVP/GM, LGM Asia Pacific
Ronaldo MelloVP/GM, LGM Latin America
Pascale WauteletVP, R&D, LGM
LGM RBIS
OpenGreg Lovins (Interim)VP/GM, IHM
IHM
Greg LovinsSVP, CFO
Functions
Materials
Company Leadership Team
Deena Baker-NelVP, CHRO
Ignacio WalkerVP, Chief Legal Officer
Classification: Avery Dennison - Public 162021 Avery Dennison Corporate Profile
Company Videos
Company VisionAvery Dennison Vision Video >
Our ValuesEight Values. One Team >
SustainabilityA Force For Good >
Careers VideoYou Make the Difference >
SustainabilityTowards a More Sustainable Future >
Company HistoryGentle Giant >
Classification: Avery Dennison - Public 172021 Avery Dennison Corporate Profile
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 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 the 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 assessments 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 strategic 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, positive or negative, of certain items (e.g., restructuring charges, outcome of certain legal proceedings, 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, gains or losses on investments, and other items), we believe that we are providing meaningful supplemental information that facilitates an understanding of our core operating results and liquidity measures. While some of the items we exclude from GAAP financial measures recur, they tend to be disparate in amount, frequency, or timing.
We use these non-GAAP financial measures internally to evaluate trends in our underlying performance, as well as to facilitate comparison to the results of competitors for a single period and full year, as applicable.
We use the following non-GAAP financial measures in this presentation:
• Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation, and, where applicable, an extra week in our fiscal year, currency adjustment for transitional reporting of highly inflationary economies, and the reclassification of sales between segments. 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.
We believe that sales change ex. currency 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 EBITDA margin refers to income before taxes; interest expense; other non-operating expense (income), net; other expense (income), net; and depreciation and amortization, as a percentage of net sales.
We believe that adjusted EBITDA margin assists investors in understanding our core operating trends and comparing our results with those of our competitors.
Classification: Avery Dennison - Public 182021 Avery Dennison Corporate Profile
Sales Change Ex. Currency by Segment
(1) Totals may not sum due to rounding
Classification: Avery Dennison - Public 192021 Avery Dennison Corporate Profile
Adjusted EBITDA Margin — LGM
($ in millions) 2020Net sales $ 4,715.1Operating income before interest expense, other non-operating expense (income), and taxes, as reported $ 688.8Operating margin, as reported 14.6%
Non-GAAP adjustments:Restructuring charges: Severance and related costs $ 27.0 Asset impairment and lease cancellation charges $ 0.9Other items $ (5.7)
Adjusted operating income (non-GAAP) $ 711.0
Depreciation & Amortization $ 107.0Adjusted EBITDA (non-GAAP) $ 818.0Adjusted EBITDA margin (non-GAAP) 17.3%
Classification: Avery Dennison - Public 202021 Avery Dennison Corporate Profile
Adjusted EBITDA Margin — RBIS
($ in millions) 2020Net sales $ 1,630.9 Operating income before interest expense, other non-operating expense (income), and taxes, as reported $ 144.7 Operating margin, as reported 8.9%
Non-GAAP adjustments:Restructuring charges: Severance and related costs $ 17.1 Asset impairment and lease cancellation charges $ 1.6 Other items $ 4.0
Adjusted operating income (non-GAAP) $ 167.4
Depreciation & Amortization $ 71.6 Adjusted EBITDA (non-GAAP) $ 239.0 Adjusted EBITDA margin (non-GAAP) 14.7%
Classification: Avery Dennison - Public 212021 Avery Dennison Corporate Profile
Adjusted EBITDA Margin — IHM
($ in millions) 2020Net sales $ 625.5 Operating income before interest expense, other non-operating expense (income), and taxes, as reported $ 58.2 Operating margin, as reported 9.3%
Non-GAAP adjustments:Restructuring charges: Severance and related costs $ 4.7 Asset impairment and lease cancellation charges $ 3.7
Adjusted operating income (non-GAAP) $ 66.6
Depreciation & Amortization $ 26.7 Adjusted EBITDA (non-GAAP) $ 93.3 Adjusted EBITDA margin (non-GAAP) 14.9%
Classification: Avery Dennison - Public 222021 Avery Dennison Corporate Profile© 2021 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.
Contact UsHave a question or comment regarding this corporate profile?Send an email to [email protected]
Presentation updated April 2021