2007InvestorMeetingHandout

Avery Dennison Investor MeetingMarch 6, 2007

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Forward-Looking StatementsCertain information discussed during this presentation may constitute “forward-looking” statements. These statements and financial or other business targets are subject to certain risks and uncertainties. Actual results and trends may differ materially from historical or expected results depending on a variety of factors, including but not limited to fluctuations in cost and availability of raw materials; ability of the Company to achieve and sustain targeted cost reductions; foreign currency exchange rates; worldwide and local economic conditions; impact of competitive products and pricing; selling prices; impact of legal proceedings, including the Canadian Department of Justice and the Australian Competition and Consumer Commission investigations into industry competitive practices, and any related proceedings or lawsuits pertaining to these investigations or to the subject matter thereof or of the recently concluded investigations by the U.S. Department of Justice (“DOJ”) and the European Commission (including purported class actions seeking treble damages for alleged unlawful competitive practices, and a purported class action related to alleged disclosure and fiduciary duty violations pertaining to alleged unlawful competitive practices, which were filed after the announcement of the DOJ investigation), as well as the impact of potential violations of the U.S. Foreign Corrupt Practices Act based on issues in China; impact of epidemiological events on the economy and the Company’s customers and suppliers; successful integration of acquisitions; financial condition and inventory strategies of customers; timely development and market acceptance of new products; fluctuations in demand affecting sales to customers; and other matters referred to in the Company’s SEC filings.

The Company believes that the most significant risk factors that could affect its ability to achieve its stated financial expectations in the near-term include (1) the impact of economic conditions on underlying demand for the Company’s products; (2) the impact of competitors’ actions, including expansion in key markets, product offerings and pricing; (3) the degree to which higher raw material and energy-related costs can be passed on to customers through selling price increases (and previously implemented selling price increases can be sustained), without a significant loss of volume; (4) potential adverse developments in legal proceedings and/or investigations regarding competitive activities, including possible fines, penalties, judgments or settlements; and (5) the ability of the Company to achieve and sustain targeted cost reductions.

Use of Non-GAAP Financial MeasuresThis presentation contains certain non-GAAP measures as defined by SEC rules. As required by these rules, we have provided a reconciliation of non-GAAP measures to the most directly comparable GAAP measures, included in the Appendix section of this presentation.

Use of Brands and Product ImagesAvery, Avery Dennison, Fasson, InfoChain Express®, and Real-World™ RFID are trademarks or service marks of Avery Dennison Corporation. All other brands and product names are trademarks of their respective companies. Use of these images is intended to demonstrate applications for Avery Dennison products and services. This display does not indicate affiliation, sponsorship, approval or endorsement by the manufacturers of the products and the owners of non-Avery Dennison trademarks.


2

Our Foundation…a balanced strategy for sustained value creation

• We have invested for top line growth and productivity improvement– Acquisitions– Portfolio rationalization (divestitures; strategic

product pruning)– Significant restructuring program

• Two major growth platforms continue to draw large share of investment today– Emerging markets– RFID

• Core businesses generating solid free cash flow to support sustained value creation ahead


3

What’s so different about AVY?

• Attractive markets with solid growth drivers

• Strong customer value proposition… product innovation, combined with superior service and quality

• Strategic advantage in all key markets

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2003 2004 2005 2006

AVY PSM BMS PS Sector UPM Converting

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

2004 2005 2006

AVY OCP ABD Office Products

Operating Margin*AVY Segments vs. Peers

Pressure-Sensitive Materials Office & Consumer Products

* Excluding restructuring charges



4


• Clear vision, values, and operating principles








• Clear vision, values, and operating principles

above-average earnings growth / ROI / FCF potential

Superior Shareholder Return


5

Full Year 2006 Highlights

• Modest growth in sales on adjusted organic basis (3%)

• Gross profit and EBIT margin (before restructuring charges) up 40 basis points

• U.S. DOJ and European Union investigations closed with no action

• Board raised authorization for share repurchase to 7.4 mil. shares in late October

Office and Consumer Products

Retail Information Services

Pressure-sensitive Materials

Other Specialty Converting

2006 Net Sales = $5.6 billion

Overview of Today’s Portfolio


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• Emerging markets• New products, niche applications

Growth Drivers

Overview of Today’s Portfolio


Office & Consumer Products

Retail Info ServicesOther Specialty Converting

3-5 Yr SalesGrowth Target*

• Emerging markets • Increased penetration of PS

label technology for product ID (food & beverage)

• Share gain in durables• RFID adoption driving carton

labeling penetration• Increased penetration of

printable media products• New category innovation;

existing product upgrades • Global consolidation• New products and services

Long-Term Operating

Margin Target

5-7%

~ flat (with improved product mix)

6-8%

10%+

10-12%

18-20%

10-12%

> 10%

* Excluding acquisitions and divestitures

Our approach to acquisitions is highly disciplined

• Strategy before deal-making (prioritized areas of interest)

• Create economic value under conservative assumptions

• Rigorous integration process– Proven methods– Tracking of post-acquisition progress vs. targets


7

International operations growing faster-than-average… and profitability is expanding

2006 Revenue by Region(before intergeographiceliminations)

* “Other” includes Canada, Australia, and South Africa

Operating Margin**, International Operations

** Excluding restructuring charges

U.S.

Western Europe

Eastern Europe

Asia

Latin America

Other*

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

2003 2004 2005 2006

Emerging markets represent consistent source of profitable growth

Local Management Leveraging Global Capabilities

Emerging Markets

Emerging Markets Share of Total Sales

Contribution to Overall Growth: 2.7 pts. 2.9 pts. 3.9 pts.

2001 2006 2011


8

Horizons delivering on its promise

• Projects from H2 pipeline expected to represent over $300 mil. in sales in 2007– $60 mil. of incremental sales in 2006– Over $80 mil. incremental planned for 2007– Few blockbusters... look for steady stream of new

products, new applications

• Shifting focus of R&D– Sharper prioritization– “More ships, fewer castles”

Key Growth Priorities By Business

• Grow materials businesses through expansion in emerging markets, increased service leadership, and innovation in new applications

• Invest in new marketing programs to accelerate growth of Avery-brand printable media products

• Accelerate growth of RIS business with new products and continued geographic expansion

• Expand new RFID business through share gain of expanding carton label market and innovation in new applications for selected markets


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$3.2 B2006 Sales

Adj. Organic Sales Growth(1)

2006 2005Operating Margin(2)

+ 3.1% 9.6% 9.0%(1) Excluding currency, acquisitions, and divestitures – see Appendix for detail(2) Excluding restructuring charges and other items – see Appendix for detail


2006 2005 2004

8.6%+ 3.6% + 9.6%

2004

OpportunitiesEmerging marketsBeverage market conversionDurables share gainRFID adoption driving carton labeling penetration

Market leader

Global scale advantages… technology development, raw material sourcing, global customers

Regional scale advantages… superior service (Exact, Next Day Delivery, Fasson Optimum Performance), lower cost asset configuration and utilization

ChallengesSlower domestic market growthOptimizing volume / price / mix equation in more competitive market

Advantages, Opportunities and Challenges


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Roll Materials: broadest reach in the industry… high relative market share on a regional basis

• Organized around trade zones in 32 countries• 25 manufacturing facilities

• 64 distribution centers• 27 stand-alone sales offices

1–1.5 X larger than #2 competitor

2–4 X larger than #2 competitor

> 4 X larger than #2 competitor

Manufacturing Facilities

HeadquartersDistribution Centers

Emerging markets are #1 growth driver for PSM

Sources: 1) GDP / Capita – CIA – The World Factbook 2) Population – Population Reference Bureau 3) Market Size Estimates - RMWW

PS Consumption/Capita relative to GDP/Capita

PS

/Cap

ita

(m2)

GDP/Capita

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

United States

United Kingdom

Netherlands

Australia

Canada

Japan/Finland/Italy

Singapore

Germany/France/Sweden

New Zealand

Spain

Taiwan

South Korea

Greece

Czech Republic

Hungary

Malaysia/South Africa/Poland/Chile

Indonesia/Vietnam/

Phillipines Turkey/Venezula Argentina

Thailand/Russia/Brazil/Mexico

China/ColumbiaIndia


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China

KoreaMalaysia

Brazil

We’ve placed major assets in these regions

India

Penetration of beer and other new segments will drive growth in more mature markets

Targeting > $50 mil. in sales in ‘07 from this segment, representing over 20% growth vs. ‘06


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New films coater brings much-needed capacity for clear-on-clear… with new capabilities

• Global asset

• Enhanced productivity for clear-on-clear applications

• Capabilities to drive penetration of new segments

Creates opportunity to drive increased productivity across entire system

Technology breakthroughs drive PS penetration


13

Our film extrusion capabilities bring added value to this market

Low share position in durable goods applications creates another major growth opportunity

Targeting ~ $100 mil. in sales in ‘07 from this segment, representing over 15% growth vs. ‘06


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Office and Consumer Products

(1) Excluding currency, acquisitions, and divestitures – see Appendix for detail(2) Excluding restructuring charges and other items – see Appendix for detail

$1.1 B2006 Sales 2006 2005

- 0.6% 16.5% 16.7%

2006 2005 2004

15.9%- 0.4% - 5.1%

2004Adj. Organic Sales Growth(1) Operating Margin(2)

Branded Printable Media –innovator of highly differentiated, proprietary productsManage for Growth

Filing and Other – low cost providerManage for Margin

OpportunitiesNew sources of growth for Branded MediaExpansion of under-penetrated categories Cost reduction for Filing business


ChallengesKey growth drivers have slowed (decline of traditional mail)Customer concentrationPrivate label growth eroding share


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Strategy to grow/differentiate Printable Media

• Deliver an exceptional consumer experience– Upgrade print enablement and web support– Improve existing product with differentiated

features

• Increase investment in more proven integrated marketing initiatives

• Develop new categories

Print Enablement / Web Support

Avery Wizard 3.0– Simplifies mail

merge– Supports Easy Peel

layouts with vertical merge

– 1 million downloads since launch


16

Product Improvements

BroadreachMedia

Integrated Marketing

Promotional Drivers generated over

700 MM Impressions

In-StoreOn-Pack

Direct to Consumer


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Integrated Marketing

The early results are promising

Easy Peel Clear -- Retail POS $(12 month moving average sales)

Sept ’05 to Dec ’06

9/4/

05

12/1

/05

2/2/

06

4/3/

06

6/5/

06

9/2/

06

11/3

/06

high single-digit growth in Retail POS for this product


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Retail Information Services


$0.7 B2006 Sales



+ 3.1% 8.4% 7.2%

2006 2005 2004

7.4%+ 4.8% + 9.8%

2004

OpportunitiesIndustry consolidation driving share gainRapid growth in Asia (China, India, other countries in region) Share gain in interior labeling

One of two global providersComplex supply chain, multi-tiered customer baseLabels and tags low cost/high value to retail/apparel companiesCustomers demand:• Global quality, data

integrity, color consistency• Fast, reliable sampling and

order fulfillmentChallenges

Increased vendor power

Achieving scale in Latin America and Europe



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We are pursuing five key strategies to capture share and gain scale in this profitable market

• Speed of service and global consistency

• Value-added sales organization to reach multi-tiered customer base

• Geographic reach

• New products and services

• Acquisitions

3 DAYS2 – 12 days**5-15 daysArt Proofs / Samples

1 DAY1 – 2.5 days**3-5 daysQuote for Tag Design

8 weeks17-26 weeks*52 weeksTime from apparel concept to merchandise on floor

TARGETToday

Three

Years Ago

* Varies by seasonal items

** Varies by product line and region

Source – just style.com and Avery Dennison Customers

Improving speed & global consistency is a top priority


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GPD HK GPD Amer

3 Global Development Hubs-Pricing (GQM)-Development Tracking (PaRTS)-Production Art/Proofing (PaRTS)-Formats (GOCA)-Item Specs (GOCA)

GPD HKGPD US

Centralization and standardization, supported by IT infrastructure, are key to quality & service

GPD EU

New products and services are contributing significantly to growth of the segment

Heat Transfer Brand Protection(e.g., anti-counterfeiting)

Item-Level RFID


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Other Specialty Converting Businesses


$0.6 B2006 Sales



+ 4.9% 3.5% 3.4%2006 2005 2004

7.0%+ 2.3% + 8.2%2004

Specialty… leveraging material science expertise to address unmet needs in new applications

• Elastic side panel for diapers

• Sound and vibration dampening tapes

• Low surface energy applications


22

The RFID tag market continues to expand

40 B Vandergraf Int’l30 B ABI

8 B VDC

Estimates of RFID Unit Volume By 2012

0

20

40

60

80

100

120

RFID Market Unit VolumeCompound Annual Growth: 2006-2012

Auto

mot

ive CPGRet

ail

Elec

tronic

s

Tran

spor

tatio

n

Phar

ma

Other

Health

Car

eGov

ernm

ent

Perc

ent

Even conservative estimates define huge market by 2012


23

Case and pallet tagging has moved steadily forward

The character of the market has evolved over the past 12 to 18 months…

Other ROI-driven applications are becoming commercially important

The character of the market has evolved over the past 12 to 18 months…

Expanded interest / pilots in item-level tagging


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Sources of competitive advantage:product range; speed and flexibility in development

AD-220/AD-221 AD-420/AD-421 AD-612 AD-622 AD-812/AD-811 AD-820/AD-821

Sources of competitive advantage:manufacturing capability


25

Sources of competitive advantage:intellectual property

High speed strap attach

In-line testing

Sources of competitive advantage:applications knowledge and testing


26

# of Qualified Converters

NA: 32

Europe: 9

Asia: 3

Sources of competitive advantage:superior channel accessQualified Converters in North America:Brady CorpCarolina Graphic Press & AmeriColorCCL LabelChallenge PrintingGeorge Schmitt & Co.Global VentureHEIIntermec TechnologiesKennedy GroupLowry Computer ProductsMarnlen ManagementMetalcraftMid South GraphicsMini GraphicsMoore WallaceMPI Label SystemNashuaNational LabelNCRNosco Printing GroupPaxar AmericasPLITEKR&V GroupRepacorp Label ProductsRSI ID TechnologiesSato AmericaStarport (Package Service)Topflight CorporationVanguard IDWeber Marking SystemWS Packaging GroupZebra Technologies

Our sales growth trajectory has changed (off of a small base)

RFID Units Sold

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb


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Margin expansion is key near-term priority

• Maintain our pricing rigor

• $90 to $100 million of annual savings from restructuring actions completed in 2006

• RFID still costing ~ $25 to $30 mil. pre-tax; losses will decline as revenue ramps up

• Enterprise Lean Sigma to drive continuous improvement


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ELS

• Individual excellence

• Cost out focus

• Led by few

• Belted community only

• Manufacturing focused

• Aligned to savings targets

• Team excellence

• Quality, Cost, Speed, Safety

• Led by top leadership

• Everyone part of ELS (especially value add employees)

• Value Stream focused

• Aligned to business priorities

Enterprise Lean Sigma (ELS)… an evolution

'02 '03 '04 '05 '06 '07e

Supply Chain Headcount down 40%

'01 '02 '03 '04 '05 '06 '07e

Direct Labor Costs down 49%

Reduction in supply chain costs

Office Products North America has already delivered… more to come across the Company


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Recordable Injury Rate down 68%

'01 '02 '03 '04 '05 '06 '01 '02 '03 '04 '05 '06'03 '04 '05 '06 '07e

Service – Line Fill Rateup 2.4 points to 98%

Defects Per Million down 70%

Improved service, quality, and safety record


'01 '02 '03 '04 '05 '06 '07e '08e '01 '02 '03 '04 '05 '06 '07e '01 '02 '03 '04 '05 '06 '07e

Plant/DC Square Footagedown 25%

Fixed Assetsdown 30%

ROTC up over 15 points

Improved capital efficiency and ROTC



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2.8%2.5%

5.9%

2.5%

4.9%

2002 2003 2004 2005 2006 Target* Excluding currency, acquisitions, divestitures, and other issues of comparability (extra week in 2004, exited business, etc.) – see Appendix for detail

Adjusted Organic Sales Growth*

Revenue growth target of 4-6% is achievable over the medium to long-term

Target = 4% to

6%


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$5,317M

$5,576M

2004 EmergingMarkets

Price / Mix Horizon Two Currency Acquisitions Divestitures /Exited Business

53rd Week in2004

Roll NA ShareLoss

Slowdown inU.S. Markets

Other 2006

We have faced some top-line headwinds over the past two years…

2004-2006 organic sales growth = 5.3% (compound) before “headwinds”

Sources of Change in Reported Sales2006 vs. 2004

$5,576M

2006 Emerging Markets Horizon Two Currency Mature MarketGrowth

Roll NA ShareGain

Divestitures /Exited Business

2006 Pre-Buy Other 2007

(before H2)

… and we remain cautious about 2007 sales

Sources of Change in Reported Sales2007 vs. 2006

Target = 2% - 5% reported growth


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$5,576M

2006 Emerging Markets Horizon Two Mature Market Growth(before H2) / Roll NA Share

Gain

Exited Business 2009

But we have built a strong pipeline of growth opportunities for the medium to long-term

Organic Sources of Change in Sales2009 vs. Today

Target = 4% - 6% organic growth

6.0

7.0

8.0

9.0

10.0

11.0

12.0

2003 2004 2005 2006 2007 Guidance

Meanwhile, operating margins have improved

* Excluding restructuring charges – see Appendix for detail

Margin impact of options/RSU expenseMargin

impact of RFID Target =

9.5% to 10.5%

Pro-forma Operating Margin*(% of sales)


33

Good margin progress in ’06, with some offsets…

Sources of Change in Operating Margin2006 vs. Prior Year

8.9%

9.3%

2005 Restructuring (Net ofTransition Costs)

Productivity (Net ofInflation)

Stock Option/RSU andPension Expense

IT / Marketing Other 2006

… and we target substantial margin expansion over the medium-term

Sources of Change in Operating Margin, Ex-RFID2008 vs. Today

9.8%

11.0%

2006 Volume andProductivity (Net of

Inflation)

Restructuring Elim. of LIFO /Other

IT Investments Segment Mix Other 2008


34

Return on Total Capital has also improved

> 16.5%

15.9%

14.3%

13.1%12.4%

2003 2004 2005 2006 2007 Guidance

* Excluding restructuring charges – see Appendix for detail

Pro-forma Return on Total Capital*

Target: double-digit EPS growth post ‘07

2007 Earnings Guidance

$2.70

$3.04

$3.44

$3.77

$4.00 - $4.35

2003 2004 2005 2006 2007 Guidance

Pro-forma Earnings Per Share, Fully Diluted*

* Excludes restructuring charges, gains on sale of assets, and other items – see Appendix for detail.

4 year CAGR ~ 12%


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Capital model provides significant flexibility for funding requirements

2007 Capital Allocation

Over $600 mil. in “unallocated” cash

Available Cash

> $1 bil.+

Cash Flow from Operations

~ $550 mil. +

Debt Capacity$500+ mil.

Acquisitions

CAPEX/Software~ $210-$225 mil.

Share Repurchase

Dividends~ $165 mil.

Emerging Markets

Capital spending… continued shift towards emerging markets

Fixed Capital Spending & Overall Capital Efficiency

Capital Turnover

(Ratio of Sales to Average Invested Capital)

2002 2003 2004 2005 2006 2007e

$150 mil.$201 mil.

$206 mil.

$162 mil. $160 - $165 mil.$162 mil.

1.8

2.0

2.1

2.3


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$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

'75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06

Div

iden

ds p

er s

hare

31 consecutive years of dividend increase31 consecutive years of dividend increase

Expect continued modest increase to dividend

5 year average dividend yield ~ 2.5%... vs. 1.6% for dividend-paying industrial

companies in S&P 500

Key Takeaways

• Acceleration of top line growth achievable over the medium-term

• Major sources of productivity improvement still ahead

• Significant free cash flow potential, to fund acquisitions and/or share repurchase, as appropriate


37

APPENDIXReconciliation of Non-GAAP Financial Measures to GAAP


38

2.6%1.2%7.4%2.5%4.9%Organic Sales Growth

0.3%1.3%(1.4%)Comparability Adjustments

2.5%

0.3%

1.4%

2.9%

2005*

2.8%5.9%2.5%4.9%Adjusted Organic Sales Growth

(1.0%)0.1%6.0%5.1%Less Impact of Acquisitions, Net of Divestitures

0.3%4.7%6.1%0.6%Less Impact of Currency

1.9%12.1%14.6%10.6%Reported Sales Growth

2006*200420032002

Total Company Adjusted Organic Sales Growth

* From continuing operationsNote: Columns may not foot due to minor rounding differences

Organic Sales Growth by Segment: 2004

PressureSensitiveMaterials

Office andConsumerProducts

RetailInformation

Services

Other SpecialtyConverting Businesses

2003 GAAP Sales $2,572.6 $1,168.1 $552.7 $469.2Impact of 2004 Currency Changes $145.6 $35.1 $12.3 $14.52003 Adjusted Non-GAAP Sales $2,718.1 $1,203.2 $565.1 $483.7

2004 GAAP Sales $3,008.5 $1,172.5 $636.1 $523.8Est. Impact of Acq.& Divestitures $0.0 $0.0 $10.1 ($5.3)Other Comparability Adjustments $28.3 $30.5 $5.8 $5.82004 Adjusted Non-GAAP Sales $2,980.2 $1,142.0 $620.2 $523.3

GAAP Sales Growth 16.9% 0.4% 15.1% 11.6%

Adj. Organic Sales Growth 9.6% -5.1% 9.8% 8.2%


39




RetailInformation

Services


2004 GAAP Sales $2,984.5 $1,172.5 $636.1 $523.8Impact of 2005 Currency Changes $57.8 $7.7 $6.7 $4.42004 Adjusted Non-GAAP Sales $3,042.3 $1,180.2 $642.8 $528.2

2005 GAAP Sales $3,114.5 $1,136.1 $674.8 $548.1Est. Impact of Acq.& Divestitures $0.0 $0.0 $17.8 $0.0Other Comparability Adjustments ($22.8) ($37.1) ($5.8) ($5.8)2005 Adjusted Non-GAAP Sales $3,137.3 $1,173.2 $662.8 $553.9

GAAP Sales Growth 4.4% -3.1% 6.1% 4.6%





RetailInformation

Services


2005 GAAP Sales* $3,114.5 $1,136.1 $630.4 $592.5Impact of 2006 Currency Changes $15.4 $1.2 $3.4 $0.62005 Adjusted Non-GAAP Sales $3,129.9 $1,137.3 $633.8 $593.1

2006 GAAP Sales $3,236.3 $1,072.0 $667.7 $599.9Est. Impact of Acq.& Divestitures $0.0 ($51.0) $3.2 ($6.6)Other Comparability Adjustments ($5.0) ($10.2) $0.0 $0.02006 Adjusted Non-GAAP Sales $3,241.3 $1,133.2 $664.5 $606.5

GAAP Sales Growth 3.9% -5.6% 5.9% 1.2%


* 2005 GAAP sales have been re-stated for Business Media reporting change from RIS to Other Specialty Converting.


40

Total Company Operating Margin

($ in millions, except as noted) FY 2003 FY 2004 FY 2005 FY 2006

Net Sales 4,736.8 5,317.0 5,473.5 5,575.9Operating income, as reported 397.1 434.0 424.7 481.1Operating margin, as reported (GAAP) 8.4% 8.2% 7.8% 8.6%Non-GAAP adjustments:Restructuring costs, asset impairment, lease cancellation costs, and environmental remediation, net of gains on asset sales 30.5 35.2 63.6 36.2 Adjusted non-GAAP operating income 427.6 469.2 488.3 517.3Adjusted non-GAAP operating margin 9.0% 8.8% 8.9% 9.3%

Total Company Return on Total Capital

($ in millions, except as noted) FY 2003 FY 2004 FY 2005 FY 2006

GAAPAverage Invested Capital (5 point average) 2,503.2 2,663.2 2,707.6 2,655.4Net Income 267.9 279.7 226.4 367.2 Addback: After-tax interest expense 42.4 43.8 46.1 46.0Return on Average Total Capital 12.4% 12.1% 10.1% 15.6%

Pro-formaAdj. Average Invested Capital (5 point average) 2,503.6 2,682.7 2,742.8 2,683.3Net Income 267.9 279.7 226.4 367.2 Addback: After-tax interest expense 42.4 43.8 46.1 46.0 Addback: After-tax restructuring costs, asset impairment, lease cancellation costs, environmental remediation, and impact of discontinued ops, net of gains on asset sales -0.8 27.6 119.8 12.5Pro-forma Return on Average Total Capital 12.4% 13.1% 14.3% 15.9%


41

($ in millions, except as noted) FY 2004 FY 2005 FY 2006

Pressure Sensitive MaterialsNet Sales 2,984.8 3,114.5 3,236.3Operating income, as reported 221.4 258.1 301.2Operating margin, as reported 7.4% 8.3% 9.3%Non-GAAP adjustments:Restructuring costs, asset impairment, and lease cancellation costs, net of gains on asset sales 34.4 23.0 9.3 Adjusted non-GAAP operating income 255.8 281.1 310.5Adjusted non-GAAP operating margin 8.6% 9.0% 9.6%

Office and Consumer ProductsNet Sales 1,172.5 1,136.1 1,072.0Operating income, as reported 186.4 168.0 179.0Operating margin, as reported 15.9% 14.8% 16.7%Non-GAAP adjustments:Restructuring costs, asset impairment, and lease cancellation costs, net of gains on asset sales 0.5 21.8 (2.3)Adjusted non-GAAP operating income 186.9 189.8 176.7Adjusted non-GAAP operating margin 15.9% 16.7% 16.5%

OPERATING MARGIN BY SEGMENT

($ in millions, except as noted) FY 2004 FY 2005 FY 2006

Retail Information ServicesNet Sales 592.7 630.4 667.7Operating income, as reported 43.4 37.7 45.0Operating margin, as reported 7.3% 6.0% 6.7%Non-GAAP adjustments:Restructuring costs, asset impairment, and lease cancellation costs, net of gains on asset sales 0.3 7.5 11.2 Adjusted non-GAAP operating income 43.7 45.2 56.2Adjusted non-GAAP operating margin 7.4% 7.2% 8.4%

Other Specialty Converting BusinessesNet Sales 567.0 592.5 599.9Operating income, as reported 39.9 14.1 17.2Operating margin, as reported 7.0% 2.4% 2.9%Non-GAAP adjustments:Restructuring costs, asset impairment, and lease cancellation costs, net of gains on asset sales 0.0 6.2 3.7 Adjusted non-GAAP operating income 39.9 20.3 20.9Adjusted non-GAAP operating margin 7.0% 3.4% 3.5%

OPERATING MARGIN BY SEGMENT


42

Note: Historical figures have NOT been adjusted to remove the contribution from businesses subsequently divested or discontinued.

Historical Earnings Per Share, GAAP vs. Pro-Forma

2003 2004 2005 2006

GAAP EPS 2.68 2.78 2.25 3.66

Restructuring & asset impairment, increase to environmental reserve 0.26 0.26 1.07 0.33

Gains on sale of business/assets, legal settlements, and other items (0.24) - (0.02) (0.22)

Tax Expense on Repatriated Earnings - - 0.14 -

Pro-forma EPS 2.70 3.04 3.44 3.77

2007 Earnings and Free Cash Flow Guidance

2007Guidance

Reported (GAAP) Earnings Per Share $3.90 - $4.30

Add Back:Estimated Restructuring and Asset Impairment Charges* $0.05 - $0.10

Adjusted (non-GAAP) Earnings Per Share $4.00 to $4.35

* Subject to upward revision as plans are finalized

Capital Expenditures & Investments in Software $210 to $225 mil.

Free Cash Flow $345 to $395 mil.

Economy & Finance

2007InvestorMeetingHandout