Avery Dennison : AVY Investor Presentation - May 2026
AVY
Published on 05/07/2026 at 09:32 am EDT
May 2026 Investor Presentation 1
May 2026
Avery Dennison at a glance
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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
Sales by Segment
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
~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
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
2015
2019 2025
~28% ~33%
Starting Point (2015)
AVY Adj. EBITDA
Margin: 12.5%
May 2026 Investor Presentation
~45%
Est. HVC Organic Growth(1)(2)
AVY Adj. EBITDA
Margin
2015 to 2019 MSD CAGR
~2.5x wt. avg. GDP
14.2% in '19
2019 to 2025 MSD CAGR
~2.5x wt. avg. GDP
16.4% in '25
8
Estimated organic growth and GDP calculated using the 4-YR period ending in 2019 and the 6-YR period ending in 2025
MSD = mid-single digit %
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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
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-term targets are annualized 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
May 2026 Investor Presentation 14
Product Category
Materials Group
High-value Categories
38%
2025 Sales by Product
(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
Western Europe
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 segments 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
Est. End Market
2025 Sales by Geography
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 1500+ patents and pending patent applications in Intelligent Labels
Industry-leading capabilities helping drive adoption of digital identification technology in new segments
High-value categories are catalysts for strong growth
Expanding opportunity in Intelligent Labels (new segments 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 segments
Disclaimer
Avery Dennison Corporation published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 13:31 UTC.