Avery Dennison (AVY) Investor presentation summary

Strategic positioning and market overview

• Recognized as a global leader in materials science and digital identification, operating in over 50 countries with approximately 35,000 employees.

• Portfolio addresses branding, supply chain efficiency, waste reduction, sustainability, and consumer connectivity.

• Exposure to diverse end markets, with ~60% of sales in consumer staples and ~30% in emerging markets.

• High-value categories now represent ~45% of sales, up from ~33% in 2019, driving margin expansion.

• Intelligent Labels segment targets 15%+ long-term organic sales growth, leveraging RFID and digital solutions.

Financial performance and targets

• Achieved 6% sales CAGR and 7.3% adjusted EBITDA CAGR from 2023-2025, with a 16.4% EBITDA margin in 2025.

• Long-term framework targets 5%+ sales growth ex. currency, 17%+ EBITDA margin, and 10% adjusted EPS growth through 2028.

• Q1 2026 delivered adjusted EPS of $2.47 (up 7%) and $104M in free cash flow, with a net debt to EBITDA ratio of 2.4x.

• Returned $133M to shareholders in Q1 2026 via dividends and share repurchases.

• Maintains a disciplined capital allocation strategy, with 50-55% of capital for buybacks/M&A and a growing dividend.

Segment highlights and growth drivers

• Materials Group: $6.1B in 2025 sales, 3.2% 5-year CAGR, 17.4% EBITDA margin, strong in self-adhesive labels and emerging markets.

• Solutions Group: $2.8B in 2025 sales, 12.7% 5-year CAGR, 17.3% EBITDA margin, leadership in branding, digital ID, and Embelex.

• Intelligent Labels: $0.9B in 2025 sales, ~12% 6-year CAGR, expanding into new markets with low penetration and large TAM.

• High-value categories outperformed GDP by ~2.5x and global retail volumes by ~3.5x since 2019.

• Vestcom and Embelex platforms drive growth through retail productivity and brand personalization.