The document is the transcript from a presentation given by Dean Scarborough, President and CEO of Avery Dennison, at a tech conference on February 7, 2007. It provides an overview of Avery Dennison's business segments and their performance in 2006, highlights growth opportunities, and discusses priorities like margin expansion and increasing participation in emerging markets. Key risks like economic conditions and legal proceedings are also addressed. Financial terms are defined in an appendix with adjustments made for items like restructuring charges and currency impacts.

1. Thomas Weisel Partners
Tech2007 Conference
February 7, 2007
Dean A. Scarborough
President and Chief Executive Officer

2. Forward-Looking Statements
Certain information presented in this document 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.

3. Pressure-sensitive (“self-stick”) technology

4. Three operating segments…and “other specialty”
2006 Net Sales = $5.6 billion
Other Specialty
Converting
Retail Information
Services
Pressure-
sensitive
Materials
Office and
Consumer
Products

5. 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%
Excluding currency, acquisitions, and divestitures – see Appendix for detail
(1)
Excluding restructuring charges and other items – see Appendix for detail
(2)

6. Office and Consumer Products
Adj. Organic Sales Growth(1) Operating Margin(2)
2006 2005 2004 2006 2005
2006 Sales 2004
$1.1 B - 0.4% - 0.6% - 5.1% 16.5% 16.9% 15.9%
Excluding currency, acquisitions, and divestitures – see Appendix for detail
(1)
Excluding restructuring charges and other items – see Appendix for detail
(2)

7. Retail Information Services
Adj. Organic Sales Growth(1) Operating Margin(2)
2006 2005 2004 2006 2005
2006 Sales 2004
$0.7 B + 4.8% + 3.1% + 9.8% 8.4% 7.2% 7.4%
Excluding currency, acquisitions, and divestitures – see Appendix for detail
(1)
Excluding restructuring charges and other items – see Appendix for detail
(2)

8. Other Specialty Converting Businesses
Adj. Organic Sales Growth(1) Operating Margin(2)
2006 2005 2004 2006 2005
2006 Sales 2004
$0.6 B + 2.3% + 4.9% + 8.2% 3.5% 3.4% 7.0%
Excluding currency, acquisitions, and divestitures – see Appendix for detail
(1)
Excluding restructuring charges and other items – see Appendix for detail
(2)

9. Full Year 2006 Highlights
• Modest growth in sales on adjusted organic basis
(3%)
– Continued strength in emerging markets
– Good progress against share gain objectives for Roll
Materials business in North America and Europe
during second half of the year
– Early signs of improvement in growth trajectory for
Office Products branded printable media
– Solid growth in Retail Information Services from
continued global share gain
– Mixed results for Graphics and Reflective – solid
performance internationally, partially offset by decline
in North America, with reduced profitability overall

10. Full Year 2006 Highlights (continued)
• Gross profit and EBIT margin (before restructuring
charges) up 40 basis points and 30 basis points,
respectively
• 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

11. 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
• Increased penetration of
Office & ~ flat 18-20%
printable media products
Consumer (with improved
Products product mix)
• New category innovation;
existing product upgrades
• Global consolidation
Retail Info 6-8% 10-12%
Services • New products and services
• Emerging markets
Other Specialty 10%+ > 10%
Converting • New products, niche applications
* Excluding acquisitions and divestitures

12. Margin expansion is key near-term priority
• Maintain our pricing rigor
• $90 to $100 million of annual savings from restructuring
actions completed in 2006
• Productivity improvement initiatives across all businesses
• Enterprise Lean Sigma to drive continuous improvement
• RFID still costing ~ $25 to $30 mil. pre-tax; losses will
decline as revenue ramps up

13. 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

14. We’ve increased our participation in the
rapidly growing emerging markets
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

15. 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
rapidly expanding carton label market and innovation
in new applications for selected markets

16. Where We Play In RFID Value Chain
Converting/
Printing Partners
Avery Dennison - Retail
Information Services
Avery Dennison
RFID, RF IDentics
Chip Chip Antenna Antenna Inlay Label Distribution
End user
Design Manufacture Design Manufacture Assembly Conversion & Service
Sales through value-adding converters
Partnerships with all major chip suppliers
aggregates volume, facilitates
better customer service

17. RFID… fundamental improvement in
competitive position vs. a year ago
• Manufacturing speeds, yields beating internal targets
• Customers, other partners recognize our technical
capabilities
• Continue to target significant share gain for carton
labeling applications (market share objective of
30%+)
• Sufficient progress to begin broadening reach:
– Develop and commercialize HF products
– Increase pharmaceutical, apparel, other item level
engagements
– Expand activities in Europe / Asia

18. Key Takeaways
• Solid progress against near-term goals… balanced strategy for
growth and margin expansion
• Net restructuring savings of ~ $50 mil. in ’06, incremental $40-
$50 mil. in ’07… near-term earnings growth achievable through
actions largely within our control
• Gaining share in the important N.A. market for roll materials
• Emerging markets represent an increasing share of the
portfolio… consistent source of profitable growth
• Return on capital is strong and improving
• Significant free cash flow potential, to fund acquisitions and/or
share repurchase, as appropriate

20. APPENDIX
Reconciliation of Non-GAAP
Financial Measures to GAAP

21. 2006 Organic Sales Growth by Segment
Pressure Office and Retail Other Specialty
Sensitive Consumer Information Converting
Materials Products Services Businesses
2005 GAAP
$3,114.5 $1,136.1 $630.4 $592.5
Sales*
Impact of 2006
$15.4 $1.2 $3.4 $0.6
Currency Changes
2005 Adjusted
$3,129.9 $1,137.3 $633.8 $593.1
Non-GAAP Sales
2006 GAAP
$3,236.3 $1,072.0 $667.7 $599.9
Sales
Estimated Impact
of Acquisitions & $0.0 ($51.0) $3.2 ($6.6)
Divestitures
Comparability
($5.0) ($10.2) $0.0 $0.0
Adjustments
2006 Adjusted
$3,241.3 $1,133.2 $664.5 $606.5
Non-GAAP Sales
GAAP Sales
3.9% -5.6% 5.9% 1.2%
Growth
Adjusted Non-GAAP
3.6% -0.4% 4.8% 2.3%
Organic Sales
Growth
* 2005 GAAP sales have been re-stated for Business Media reporting change from RIS to Other Specialty Converting.

22. 2005 Organic Sales Growth by Segment
Pressure Office and Retail Other Specialty
Sensitive Consumer Information Converting
Materials Products Services Businesses
2004 GAAP
$2,984.5 $1,172.5 $636.1 $523.8
Sales
Impact of 2005
$57.8 $7.7 $6.7 $4.4
Currency Changes
2004 Adjusted
$3,042.3 $1,180.2 $642.8 $528.2
Non-GAAP Sales
2005 GAAP
$3,114.5 $1,136.1 $674.8 $548.1
Sales
Estimated Impact
of Acquisitions & $0.0 $0.0 $17.8 $0.0
Divestitures
Comparability
($22.8) ($37.1) ($5.8) ($5.8)
Adjustments
2005 Adjusted
$3,137.3 $1,173.2 $662.8 $553.9
Non-GAAP Sales
GAAP Sales
4.4% -3.1% 6.1% 4.6%
Growth
Adjusted Non-GAAP
3.1% -0.6% 3.1% 4.9%
Organic Sales
Growth

23. 2004 Organic Sales Growth by Segment
Pressure Office and Retail Other Specialty
Sensitive Consumer Information Converting
Materials Products Services Businesses
2003 GAAP
$2,572.6 $1,168.1 $552.7 $469.2
Sales
Impact of 2004
$145.6 $35.1 $12.3 $14.5
Currency Changes
2003 Adjusted
$2,718.1 $1,203.2 $565.1 $483.7
Non-GAAP Sales
2004 GAAP
$3,008.5 $1,172.5 $636.1 $523.8
Sales
Estimated Impact
of Acquisitions & $0.0 $0.0 $10.1 ($5.3)
Divestitures
Comparability
$28.3 $30.5 $5.8 $5.8
Adjustments
2004 Adjusted
$2,980.2 $1,142.0 $620.2 $523.3
Non-GAAP Sales
GAAP Sales
16.9% 0.4% 15.1% 11.6%
Growth
Adjusted Non-GAAP
9.6% -5.1% 9.8% 8.2%
Organic Sales
Growth

24. Operating Margin by Segment
FY2004 FY2005 FY2006
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%
Non-GAAP adjustments:
Restructuring costs, asset impairment
and lease cancellation costs $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
Operating income, as reported $186.4 $168.0 $179.0
Operating margin, as reported 15.9% 14.8% 16.7%
Non-GAAP adjustments:
Restructuring costs, asset impairment
and lease cancellation costs $0.5 $24.1 ($2.3)
Adjusted non-GAAP operating income $186.9 $192.1 $176.7
Adjusted non-GAAP operating margin 15.9% 16.9% 16.5%

25. Operating Margin by Segment
FY2004 FY2005 FY2006
Retail Information Services
Net Sales $592.7 $630.4 $667.7
Operating income, as reported $43.4 $37.7 $45.0
Operating margin, as reported 7.3% 6.0% 6.7%
Non-GAAP adjustments:
Restructuring costs, asset impairment
and lease cancellation costs $0.3 $7.5 $11.2
Adjusted non-GAAP operating income $43.7 $45.2 $56.2
Adjusted non-GAAP operating margin 7.4% 7.2% 8.4%
Other Specialty Converting Businesses
Net Sales $567.0 $592.5 $599.9
Operating income, as reported $39.9 $14.1 $17.2
Operating margin, as reported 7.0% 2.4% 2.9%
Non-GAAP adjustments:
Restructuring costs, asset impairment
and lease cancellation costs $0.0 $6.2 $3.7
Adjusted non-GAAP operating income $39.9 $20.3 $20.9
Adjusted non-GAAP operating margin 7.0% 3.4% 3.5%