2007InvestorMeetingHandout

Avery Dennison Investor Meeting
March 6, 2007

Forward-Looking Statements
Certain 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 Measures
This 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 Images
Avery, 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.

1

March 6, 2007

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

2

March 6, 2007

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


Operating Margin*
AVY Segments vs. Peers

Pressure-Sensitive Materials Office & Consumer Products

AVY PSM BMS PS Sector UPM Converting AVY OCP ABD Office Products

10.0% 20.0%

8.0% 16.0%

6.0% 12.0%

8.0%
4.0%

4.0%
2.0%

0.0%
0.0%
2004 2005 2006
2003 2004 2005 2006

* Excluding restructuring charges

3

March 6, 2007


and quality
• Clear vision, values, and operating principles


and quality
• Clear vision, values, and operating principles

above-average earnings
growth / ROI / FCF potential

Superior Shareholder Return

4

March 6, 2007

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

Overview of Today’s Portfolio

2006 Net Sales = $5.6 billion

Other Specialty
Converting

Retail Information
Services

Pressure-
sensitive
Materials
Office and
Consumer
Products

5

March 6, 2007

Overview of Today’s Portfolio

Long-Term
Operating
3-5 Yr Sales
Margin Target
Growth Drivers Growth Target*

Pressure- • Emerging markets 5-7% 10-12%
sensitive
• Increased penetration of PS
Materials
label technology for product
ID (food & beverage)
• Share gain in durables
• RFID adoption driving carton
labeling penetration
Office & • Increased penetration of ~ flat 18-20%
Consumer printable media products (with improved
Products product mix)
• New category innovation;
existing product upgrades
Retail Info • Global consolidation 6-8% 10-12%
Services • New products and services
• Emerging markets
Other Specialty 10%+ > 10%
Converting • New products, niche applications
* 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

6

March 6, 2007

International operations growing faster-than-
average… and profitability is expanding
2006 Revenue Operating Margin**,
by Region International Operations
(before intergeographic
eliminations)

11.0%
Latin Other*
America
10.0%

Asia 9.0%
U.S.
8.0%

Eastern 7.0%
Europe
6.0%

5.0%
Western 2003 2004 2005 2006
Europe

* “Other” includes Canada, Australia, and South Africa
** Excluding restructuring charges

Emerging markets represent consistent source of
profitable growth
Emerging Markets Share of Total Sales

2001 2006 2011

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

Emerging Markets

Local Management Leveraging Global Capabilities

7

March 6, 2007

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

8

March 6, 2007

Pressure-sensitive Materials

Adj. Organic Sales Growth(1) Operating Margin(2)
2006 2005 2004 2006 2005
2006 Sales 2004

$3.2 B + 3.6% + 3.1% + 9.6% 9.6% 9.0% 8.6%
(1) Excluding currency, acquisitions, and divestitures – see Appendix for detail
(2) Excluding restructuring charges and other items – see Appendix for detail

Advantages, Opportunities and Challenges

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
Opportunities Challenges
Emerging markets Slower domestic market
growth
Beverage market conversion
Optimizing volume / price / mix
Durables share gain
equation in more competitive
RFID adoption driving carton market
labeling penetration

9

March 6, 2007

Roll Materials: broadest reach in the industry…
high relative market share on a regional basis
• 64 distribution centers
• Organized around trade zones in 32 countries
• 27 stand-alone sales offices
• 25 manufacturing facilities

Headquarters
Distribution Centers
Manufacturing Facilities

1–1.5 X larger 2–4 X larger > 4 X larger
than #2 than #2 than #2
competitor competitor competitor

Emerging markets are #1 growth driver for PSM

PS Consumption/Capita relative to GDP/Capita
14.0 United Kingdom

Netherlands
12.0
New Zealand
PS/Capita (m2)

Australia United States
10.0
Germany/France/Sweden
Spain

Japan/Finland/Italy
Taiwan
8.0

Singapore
6.0 Czech Republic
Canada
Malaysia/South Africa/
South Korea
Poland/Chile
4.0 Hungary
Indonesia/
Greece
Vietnam/
Phillipines Turkey/
2.0 Argentina
Venezula
Thailand/Russia/Brazil/Mexico
India
China/Columbia
0.0
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000

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

10

March 6, 2007

We’ve placed major assets in these regions

Brazil

China

India

Malaysia Korea

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

11

March 6, 2007

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

12

March 6, 2007

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

13

March 6, 2007

Office and Consumer Products

2006 2005 2004 2006 2005
2006 Sales 2004

$1.1 B - 0.4% - 0.6% - 5.1% 16.5% 16.7% 15.9%


Branded Printable Media –
innovator of highly
differentiated, proprietary
products
Manage for Growth
Filing and Other – low cost
provider
Manage for Margin

New sources of growth for Key growth drivers have
Branded Media slowed (decline of traditional
mail)
Expansion of under-penetrated
categories Customer concentration
Cost reduction for Filing Private label growth eroding
business share

14

March 6, 2007

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

15

March 6, 2007

Product Improvements

Integrated Marketing

In-Store
On-Pack

Promotional Drivers
generated over
700 MM Impressions

Direct to
Broadreach
Consumer
Media

16

March 6, 2007

Integrated Marketing

The early results are promising

Easy Peel Clear -- Retail POS $
(12 month moving average sales)
Sept ’05 to Dec ’06

high single-digit growth in
Retail POS for this product
9/4/05

2/2/06

6/5/06

11/3/06
12/1/05

4/3/06

9/2/06

17

March 6, 2007

Retail Information Services

2006 2005 2004 2006 2005
2006 Sales 2004

$0.7 B + 4.8% + 3.1% + 9.8% 8.4% 7.2% 7.4%


One of two global providers
Complex supply chain, multi-
tiered customer base
Labels and tags low cost/high
value to retail/apparel
companies
Customers demand:
• Global quality, data
integrity, color consistency
• Fast, reliable sampling and
order fulfillment
Industry consolidation driving
Increased vendor power
share gain
Achieving scale in Latin
Rapid growth in Asia (China,
America and Europe
India, other countries in region)
Share gain in interior labeling

18

March 6, 2007

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

Improving speed & global consistency is a
top priority

Three
Years Ago Today TARGET
Time from 52 weeks 17-26 weeks* 8 weeks
apparel
concept to
merchandise
on floor

Quote for Tag 3-5 days 1 – 2.5 days** 1 DAY
Design
Art Proofs / 5-15 days 2 – 12 days** 3 DAYS
Samples

* Varies by seasonal items
** Varies by product line and region
Source – just style.com and Avery Dennison Customers

19

March 6, 2007

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

GPD EU

GPD US
GPD Amer
GPD HK
GPD HK

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

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

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

20

March 6, 2007

Other Specialty Converting Businesses

2006 2005 2004 2006 2005
2006 Sales 2004

$0.6 B + 2.3% + 4.9% + 8.2% 3.5% 3.4% 7.0%

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

21

March 6, 2007

The RFID tag market continues to expand

RFID Market Unit Volume
Compound Annual Growth: 2006-2012

Even conservative
120

estimates define
100
huge market by 2012
80
Percent

Estimates of RFID Unit
60
Volume By 2012
40
40 B Vandergraf Int’l
30 B ABI
20

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22

March 6, 2007

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

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

Expanded interest / pilots
in item-level tagging

23

March 6, 2007

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

manufacturing capability

24

March 6, 2007

intellectual property

High speed strap attach

In-line testing

applications knowledge and testing

25

March 6, 2007

superior channel access
Qualified Converters in North America:
Brady Corp
Carolina Graphic Press & AmeriColor
CCL Label
Challenge Printing
George Schmitt & Co.
Global Venture
HEI
Intermec Technologies
# of Qualified
Kennedy Group
Lowry Computer Products
Converters
Marnlen Management
Metalcraft
Mid South Graphics
NA: 32
Mini Graphics
Moore Wallace
MPI Label System
Europe: 9
Nashua
National Label
NCR

Asia: 3
Nosco Printing Group
Paxar Americas
PLITEK
R&V Group
Repacorp Label Products
RSI ID Technologies
Sato America
Starport (Package Service)
Topflight Corporation
Vanguard ID
Weber Marking System
WS Packaging Group
Zebra 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

26

March 6, 2007

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

27

March 6, 2007

Enterprise Lean Sigma (ELS)… an evolution

ELS

• Individual excellence • Team excellence
• Cost out focus • Quality, Cost, Speed,
Safety
• Led by few
• Led by top leadership
• Belted community only
• Everyone part of ELS
• Manufacturing focused
(especially value add
• Aligned to savings employees)
targets
• Value Stream focused
• Aligned to business
priorities

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

Supply Chain Headcount Direct Labor Costs
down 40% down 49%

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

Reduction in supply chain costs

28

March 6, 2007


Defects Per Million Recordable Injury Rate
Service – Line Fill Rate
down 70% down 68%
up 2.4 points to 98%

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

Improved service, quality, and safety record


Plant/DC Square Footage Fixed Assets ROTC
down 25% down 30% up over 15 points

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

Improved capital efficiency and ROTC

29

March 6, 2007

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

Adjusted Organic Sales Growth*
5.9%

Target =
4.9% 4% to
6%

2.8%
2.5%
2.5%

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

30

March 6, 2007

We have faced some top-line headwinds over the
past two years…
Sources of Change in Reported Sales
2006 vs. 2004

$5,576M

$5,317M

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

2004 Emerging Price / Mix Horizon Two Currency Acquisitions Divestitures / 53rd Week in Roll NA Share Slowdown in Other 2006
Markets Exited Business 2004 Loss U.S. Markets

… and we remain cautious about 2007 sales

Sources of Change in Reported Sales
2007 vs. 2006
Target =
2% - 5%
reported
growth

$5,576M

2006 Emerging Markets Horizon Two Currency Mature Market Roll NA Share Divestitures / 2006 Pre-Buy Other 2007
Growth Gain Exited Business
(before H2)

31

March 6, 2007

But we have built a strong pipeline of growth
opportunities for the medium to long-term
Organic Sources of Change in Sales
2009 vs. Today
Target =
4% - 6%
organic
growth

$5,576M

2006 Emerging Markets Horizon Two Mature Market Growth Exited Business 2009
(before H2) / Roll NA Share
Gain

Meanwhile, operating margins have improved

Pro-forma Operating Margin*
(% of sales)
12.0
Margin
impact of
11.0 options/RSU
Margin
expense
impact of
Target =
RFID
10.0 9.5% to
10.5%

9.0

8.0

7.0

6.0
2003 2004 2005 2006 2007 Guidance
* Excluding restructuring charges – see Appendix for detail

32

March 6, 2007

Good margin progress in ’06, with some offsets…

Sources of Change in Operating Margin
2006 vs. Prior Year

9.3%
8.9%

2005 Restructuring (Net of Productivity (Net of Stock Option/RSU and IT / Marketing Other 2006
Transition Costs) Inflation) Pension Expense

… and we target substantial margin expansion
over the medium-term
Sources of Change in Operating Margin, Ex-RFID
2008 vs. Today

11.0%

9.8%

2006 Volume and Restructuring Elim. of LIFO / IT Investments Segment Mix Other 2008
Productivity (Net of Other
Inflation)

33

March 6, 2007

Return on Total Capital has also improved

Pro-forma Return on Total Capital*

> 16.5%
15.9%

14.3%

13.1%
12.4%

2003 2004 2005 2006 2007 Guidance

* Excluding restructuring charges – see Appendix for detail

2007 Earnings Guidance

Pro-forma Earnings Per Share, Fully Diluted*
4 year CAGR ~ 12%
$4.00 - $4.35

$3.77

$3.44

$3.04

$2.70

2003 2004 2005 2006 2007 Guidance

Target: double-digit EPS growth post ‘07
* Excludes restructuring charges, gains on sale of assets, and other items – see Appendix for detail.

34

March 6, 2007

Capital model provides significant flexibility for
funding requirements
2007 Capital Allocation

CAPEX/Software
~ $210-$225 mil.
Cash Flow from
Operations
Acquisitions
~ $550 mil. +

Available
+ Cash
> $1 bil.

Dividends
~ $165 mil.
Debt Capacity
$500+ mil.
Share Repurchase

Over $600 mil. in “unallocated” cash

Capital spending…
continued shift towards emerging markets

Fixed Capital Spending & Overall Capital Efficiency
2.3
$206 mil.

$162 mil. $160 - $165 mil.
$162 mil.
$201 mil.
2.1
Capital
$150 mil.
Turnover
(Ratio of Sales
to Average
Invested
2.0
Capital)

1.8
2002 2003 2004 2005 2006 2007e

Emerging Markets

35

March 6, 2007

Expect continued modest increase to dividend

$1.80
31 consecutive years of dividend increase
$1.60

$1.40
Dividends per share

$1.20
5 year average dividend
yield ~ 2.5%... vs. 1.6% for
$1.00
dividend-paying industrial
companies in S&P 500
$0.80

$0.60

$0.40

$0.20

$0.00
'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

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

36

March 6, 2007

APPENDIX
Reconciliation of Non-GAAP
Financial Measures to GAAP

37

March 6, 2007

Total Company Adjusted Organic Sales Growth

2002 2003 2004 2005* 2006*

Reported Sales Growth 10.6% 14.6% 12.1% 2.9% 1.9%

Less Impact of Currency 0.6% 6.1% 4.7% 1.4% 0.3%

Less Impact of Acquisitions, Net
of Divestitures 5.1% 6.0% 0.1% 0.3% (1.0%)

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

Comparability Adjustments (1.4%) 1.3% 0.3%

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

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

Organic Sales Growth by Segment: 2004

Pressure Office and Retail Other Specialty
Sensitive Consumer Information Converting
Materials Products Services Businesses

2003 GAAP Sales $2,572.6 $1,168.1 $552.7 $469.2
Impact of 2004 Currency Changes $145.6 $35.1 $12.3 $14.5
2003 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 $523.8
Est. Impact of Acq.& Divestitures $0.0 $0.0 $10.1 ($5.3)
Other Comparability Adjustments $28.3 $30.5 $5.8 $5.8

GAAP Sales Growth 16.9% 0.4% 15.1% 11.6%
Adj. Organic Sales Growth 9.6% -5.1% 9.8% 8.2%

38

March 6, 2007



2004 GAAP Sales $2,984.5 $1,172.5 $636.1 $523.8

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

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



2005 GAAP Sales* $3,114.5 $1,136.1 $630.4 $592.5

2006 GAAP Sales $3,236.3 $1,072.0 $667.7 $599.9
Est. Impact of Acq.& Divestitures $0.0 ($51.0) $3.2 ($6.6)
Other Comparability Adjustments ($5.0) ($10.2) $0.0 $0.0

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.

39

March 6, 2007

Total Company Operating Margin

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

Net Sales 4,736.8 5,317.0 5,473.5 5,575.9
Operating income, as reported 397.1 434.0 424.7 481.1
Operating 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 427.6 469.2 488.3 517.3
Adjusted non-GAAP operating margin 9.0% 8.8% 8.9% 9.3%

Total Company Return on Total Capital

FY 2003 FY 2004 FY 2005 FY 2006

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

Pro-forma
Adj. Average Invested Capital (5 point average) 2,503.6 2,682.7 2,742.8 2,683.3
Net 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 12.5
Pro-forma Return on Average Total Capital 12.4% 13.1% 14.3% 15.9%

40

March 6, 2007

OPERATING MARGIN BY SEGMENT

FY 2004 FY 2005 FY 2006

Pressure Sensitive Materials
Net Sales 2,984.8 3,114.5 3,236.3
Operating income, as reported 221.4 258.1 301.2
Operating margin, as reported 7.4% 8.3% 9.3%
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 255.8 281.1 310.5
Adjusted non-GAAP operating margin 8.6% 9.0% 9.6%

Office and Consumer Products
Net Sales 1,172.5 1,136.1 1,072.0
sales 0.5 21.8 (2.3)

OPERATING MARGIN BY SEGMENT

FY 2004 FY 2005 FY 2006

Retail Information Services
Net Sales 592.7 630.4 667.7
sales 0.3 7.5 11.2

Other Specialty Converting Businesses
Net Sales 567.0 592.5 599.9
sales 0.0 6.2 3.7

41

March 6, 2007

Historical Earnings Per Share, GAAP vs. Pro-Forma

2003 2004 2005 2006

2.68 2.78 2.25 3.66
GAAP EPS

Restructuring & asset impairment, increase
0.26 0.26 1.07 0.33
to environmental reserve
Gains on sale of business/assets, legal
(0.24) - (0.02) (0.22)
settlements, and other items

- - 0.14 -
Tax Expense on Repatriated Earnings

2.70 3.04 3.44 3.77
Pro-forma EPS

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

2007 Earnings and Free Cash Flow Guidance

2007
Guidance

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

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

Free Cash Flow $345 to $395 mil.

* Subject to upward revision as plans are finalized

42

2007InvestorMeetingHandout

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