BASInvestmentConferenceHandout

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Investor Presentation
and Supplemental Information

081308US

Forward-Looking Statements
Certain statements contained in this document are “forward-looking statements” intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of 1995. Such forward-looking 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 risks and uncertainties relating to investment in development activities and
new production facilities; fluctuations in cost and availability of raw materials; ability of the Company to achieve and sustain targeted cost
reductions, including synergies expected from the integration of the Paxar business in the time and at the cost anticipated; ability of the
Company to generate sustained productivity improvement; successful integration of acquisitions; successful implementation of new
manufacturing technologies and installation of manufacturing equipment; the financial condition and inventory strategies of customers;
customer and supplier concentrations; changes in customer order patterns; loss of significant contract(s) or customer(s); timely
development and market acceptance of new products; fluctuations in demand affecting sales to customers; impact of competitive products
and pricing; selling prices; business mix shift; credit risks; ability of the Company to obtain adequate financing arrangements; fluctuations
in interest rates; fluctuations in pension, insurance and employee benefit costs; impact of legal proceedings, including the Australian
Competition and Consumer Commission investigation into industry competitive practices, and any related proceedings or lawsuits
pertaining to this investigation or to the subject matter thereof or of the concluded investigations by the U.S. Department of Justice
(“DOJ”), the European Commission, and the Canadian Department of Justice (including purported class actions seeking treble damages
for 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; changes in governmental regulations; changes in
political conditions; fluctuations in foreign currency exchange rates and other risks associated with foreign operations; worldwide and local
economic conditions; impact of epidemiological events on the economy and the Company’s customers and suppliers; acts of war,
terrorism, natural disasters; and other factors.

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 degree to which higher
raw material and energy-related costs can be passed on to customers through selling price increases, without a significant loss of volume;
(3) the impact of competitors’ actions, including pricing, expansion in key markets, and product offerings; (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, including expected synergies associated
with the Paxar acquisition.

This presentation includes references to the Company’s 2008 guidance, which was included in the Company’s second quarter earnings
announcement as of July 22, 2008 and was current only as of that date. By including this previously provided guidance in this
presentation, we are not affirming nor updating the previously released guidance, which was current only as of July 22, 2008. The
Company undertakes no duty to update its forward-looking statements, including the earnings guidance.

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 “Supplemental Materials” handout
accompanying this presentation.

1

Actions underway to address 1-3/4” line
challenging near-termbar right edge ofExtend toMedium gray
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> Sales trends somewhat mixed:
– Organic sales growth improved sequentially for the PSM Segment; emerging
markets remain strong for materials businesses
– Weakness in the U.S. retail environment continued to drive sales declines
(organic basis) for a number of businesses, including RIS and Office Products
– European end market weakened for RIS
> Operating margin negatively impacted by raw material and energy
inflation, pricing (carryover from prior year), and unfavorable
segment/product mix
> Actions underway to weather the storm and position Company for
economic rebound:
– Implementing additional price increases in Roll Materials and Office Products;
new pricing actions taken in RIS
– Executing Paxar integration
– Driving increased productivity across organization
– Protecting investment in key growth programs (RFID, emerging markets, RIS,
other)
– Projecting significant increase in free cash flow over the next few years

3

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Who we are… AVY by segment

2007 Proforma Revenue By Segment,
with Annualized Paxar Sales
Other
(after intercompany eliminations) Specialty
Converting
9%

Office and
Consumer
Products
15%

Retail
Pressure-sensitive
Information
Materials
Services
52%
24%

2007 Net Sales (as reported) = $6.3 billion

4

2

Who we are… AVY by region

2007 Proforma Revenue By Region,
with Annualized Paxar Sales
(before intergeographic eliminations)
Other*
Latin
America

U.S.
Asia

Eastern
Europe

Western
Europe

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

Pressure-sensitive Materials (PSM)

Who we are.
> Global market share leader

How we win.
> Innovation
> Product breadth and quality
> Global footprint
2007 FINANCIAL SNAPSHOT
> Regional scale
Sales $3.5 bil.
Organic Sales Growth 2.8%
Operating Margin(1) 9.5%

(1) Excluding restructuring charges and other items –
6
see Appendix, “Reconciliation of Non-GAAP Financial Measures to GAAP”

3

PSM: How do we grow?

> Expand in faster-growing international markets by
leveraging global and regional scale advantages

Other*
Latin
America
Roll Materials
2007 revenues by U.S.
geography, before
Asia
intergeographic
eliminations

Eastern
Europe

Western
Europe

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


> Drive increased PS penetration of food and
beverage segments (shift from glue-applied labels)
through product innovation and marketing

8

4


> Drive share gain in durable goods applications

9

Transition to pressure-sensitive materials drives and betteredge of screen. Medium gray
guidelines a to far right than
6% total applied cost advantage in labeling is the default color.
for breweries

Total Applied Cost Comparison

Pressure-
Glue-
Sensitive
Applied

Cost down more
than 6%...
… while achieving:
> Premium brand image
> Design flexibility
> Functionality
> Ease of product changeover

Material Process Costs Tooling Other Costs

10

5

Pressure-sensitive penetration photoprime label (brandbar rightsegments
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is still less than 25 percent in North America

North American Prime Label (Brand ID) Segments

80%
Pharma Wine
60% Personal Care
PS Penetration

Food
40%

Spirits
Household
20%
Beer
Other Beverage
0%

0% 1% 2% 3% 4% 5% 6% 7% 8%
Projected Market Growth
('07 - '10 CAGR)

11

Joint partnership with customers drives growth color.
is the default

Growth • Drive growth in underpenetrated segments
(food, beverage, household)
How can we help you grow?

Productivity
• Lean and Six Sigma process improvement
How can we help you become
• Expanded service programs
more cost effective?

Innovation
• Continual product re-engineering
How can we help you look
• Specialty application development
to the future?

12

6

Graphics and Reflective… > $600 mil. business with solid growth drivers is the default color.

> Emerging markets

> Wide-format digital printers

> Differentiation through
innovation, quality, and service

13

Sustainable competitive advantages drive superior tobar right edge ofExtend toMedium gray
guidelines and far screen.
profitability and returns vs. peers

|
Operating Margin* AVY PSM Segment vs. Peers
10.0%

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%
2005 2006 2007 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08

AVY PSM Segment BMS PS Segment UPM Label Materials Segment

* Excluding restructuring charges
14
Data for BMS and UPM taken from public filings and earnings releases

7

Major initiatives underway Optional photo extends
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productivity gains for PSM is the default color.

> Announced price increases

> Product (materials) re-engineering

> Raw materials… strategic sourcing initiatives

> Quakertown scale-up for films

> Coater optimization and shut-downs

> Enterprise Lean Sigma

15

Retail Information Services (RIS)

Who we are.
> Largest global supplier in retail tag,
ticketing, brand and product
identification
How we win.
> Global scale, local presence
> Comprehensive product range that
offers global consistency
> Strong relationships with major
retailers and brand owners
Sales $1.2 bil.
> Unparalleled ability to support,
Organic Sales Growth 0.5%
create and inspire

(1) Excluding restructuring charges, integration transition costs, and other items –
16

8

Global Footprint

17

Benefits of Paxar acquisition

Enhanced the Company’s top-line growth potential
> More than doubled sales in segment with above-average
growth potential
> Combined complementary strengths
> Improved ability to meet customer demands for product
innovation, quality, and speed of service
$115 to $125 mil. of cost synergies
> Elimination of headquarters, costs of running public company
(~ $25 mil.)
> “Front-end” (e.g., sales, product development) redundancies
(~ $15 mil.)
> In-sourcing of supplies, procurement savings
(~ $25 mil.)
> Rationalization of production facilities and related overhead
($50 to $60 mil.)

18

9

Integration cost synergies Optional photo extendsto substantialbar right edge ofExtend toMedium gray
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margin improvement over medium-term

Adjusted RIS Operating Margin*
6% -1% 12% +

6%

2007 Combined Incremental 2009/2010
Incremental Other Productivity,
Goodwill Net of Incremental
Synergies
(Incl. Paxar prior Amortization Investments & Cost
to acquisition) and Corp. Fee Inflation

* Excluding restructuring charges, integration transition costs, and other items –
19
see Appendix, Reconciliation of Non-GAAP Financial Measures to GAAP”

RIS growth through innovation is the default color.

> Digital Printing
Services

> Heat Transfer

> Packaging

> RFID Applications

20

10

Office and Consumer Products (OCP)

Who we are.
> Global leader in key
Printable Media categories
(labels, index dividers)
How we win.
> Proprietary products
> Ubiquitous software templates
and other consumer-use
“enablers”
> Powerful consumer brand
Sales $1.0 bil. > Preferred supplier
Organic Sales Change (6.6)%

(1) Excluding restructuring charges and other items –
21

OCP: Key Strategic Priorities

Focus on core products, growth projects with rapid payback
> “Product renovation” to maintain / grow share
vs. private label offerings

Maintain / expand margin and ROTC
> Product mix improvement
> Price increases to offset raw material inflation
> Enterprise Lean Sigma
> Capital investment substantially below D&A

22

11

Renovation example: Labels

Objective: Deliver consumer preferred, IP-protected,
value-added product that drives sales growth

Strategy: Optimize products by application (addressing,
return addressing, shipping and filing/identification)

TrueBlock Next Gen Repositionable
Clear Internet White Larger Return
Shipping and Filing Easy Peel
Easy Peel Shipping Easy Peel Address

Q4 2005 Q2 2006 Q4 2006 Q4 2007 Q4 2008 Q4 2008 Q4 2009

23

ELS continues to drive operationalextends
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guidelines and
for Office Products North America

Reduction in supply chain costs 2008 est. vs. ’01/’02

Supply chain headcount 39%
Direct labor costs 51%

Improved service, quality, and safety record

Service – line fill rate 2.2 pts to 97.8%
Defects per million 85%

Improved capital efficiency and ROTC

Plant/DC square footage 35%
Fixed assets 36%
ROTC 12.6 pts.

24

12

RFID

Carton and
pallet tagging

Item-level
tagging…
apparel, airline
baggage,
pharmaceutical,
etc.

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

25

What does it mean for investors? line guidelines and to far right edge of screen. Medium gray
to the 1-3/4”
Long-term earnings growth…

Earnings Per Share, Fully Diluted

$3.91
$3.75 to $3.95
$3.84
Projecting 5 year CAGR in adjusted $3.72
EPS of ~ 7.8% through 2008 $3.35 to
$3.45 $3.55

$3.07
$3.06

$2.78
$2.67 $2.64

$2.26

2003 2004 2005 2006 2007 2008 Guidance
(provided on
7/22/08)(2)

EPS - Adjusted(1)
EPS - GAAP

Target: > 12% compound annual growth in adjusted EPS through 2010

(1) Excludes restructuring charges, gains on sale of assets, and other items – see “Supplemental
26 Materials” handout for detail.
(2) Guidance not affirmed or updated.

13

What does it mean for investors? line guidelines and to far right edge of screen. Medium gray
to the 1-3/4”
Improving returns…

Adjusted Return on Total Capital(1)
16.0%
15%
14.3%
13.0% 12.8%
12.7%
~ 12.0%

(2)
2003 2004 2005 2006 2007 2008 Guidance 2010 Target

Improvement in returns temporarily halted by acquisition effect…
expect to resume progress in ‘09
(1) Excludes restructuring charges, gains on sale of assets, and other items – see “Supplemental
27 Materials” handout for detail.
(2) Guidance not affirmed or updated.

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~ 65% boost to free cash flow in 2008 (current default color.
is the
FCF yield ~ 9%)

2008 Guidance
(provided on
2007
(Millions, except as noted) 7/22/08)(3)

Cash flow from operations $580 to $610 $499.4
expenditures(1)
Payment for capital ~ $135 $190.5
Payment for software and other deferred
charges(1) $55 to $60 $ 64.3

~ $15 $0.0
Proceeds from sale of investments, net

Free Cash Flow(2) > $400 $244.6

Dividends ~ $180 $171.8
Share Repurchase --- $ 63.2
Total debt to total capital at year-end 45% to 50% 53.1%

Target: > 30% compound annual growth through 2010
(1) Includes Paxar integration related expenditures
(2) Net cash provided by operating activities (as reported), less purchase of property, plant,
28
equipment, software, and other deferred charges, plus proceeds from sale of investments, net
(3) Guidance not affirmed or updated

14

What does it mean for investors?line guidelines and to far right edge of screen. Medium gray
to the 1-3/4”
Dividend increase…

32 consecutive years of dividend increases through 2007
$1.80

$1.60

$1.40

$1.20
Dividends per share

$1.00

$0.80

$0.60

$0.40

$0.20

$0.00
5

7

9

1

3

5

7

9

1

3

5

7

9

1

3

5

7
'7

'7

'7

'8

'8

'8

'8

'8

'9

'9

'9

'9

'9

'0

'0

'0

'0
Current Dividend Yield ~ 3%

29

Wrap-up: 2008 Priorities

1. Capture Paxar integration synergies… deliver on RIS
growth commitment

2. Improve trajectory of PSM business:
> Continued growth in emerging markets
> Investment in new application growth
> Accelerated productivity improvement
> Price increases to offset raw material inflation

3. Continue to renovate core Office Products; manage for
margin/cash flow

4. Accelerate Enterprise Lean Sigma efforts Company-
wide to improve productivity and enhance product
quality and customer service

5. Deliver significant increase in free cash flow

30

15

Wrap-up: Medium-term Financial Targets

Adjusted EPS (1) > 12% CAGR through 2010

ROTC (1) 15% by 2010

Free Cash Flow (2) > 30% CAGR through 2010

(1) Excluding restructuring charges, gains on sale of assets, and other items
31 (2) Cash flow from operations less payment for capital expenditures, software and other deferred
charges

16


Appendix

33

2008 Earnings and Free Cash Flow Guidance default color.
is the

2008 Guidance
(provided on
7/22/08)(2)

Reported (GAAP) Earnings Per Share $3.35 to $3.55

Add Back:

Estimated Integration Transition Costs, Restructuring and
Asset Impairment Charges(1) ~ $0.40

Adjusted (non-GAAP) Earnings Per Share $3.75 to $3.95

Capital Expenditures and Investments in Software (ex-integration) ~ $170 mil.
Cash Costs of Paxar Integration (before tax) ~ $ 65 mil.

Free Cash Flow (before dividends) > $400 mil.

(1) Subject to revision as plans are finalized
34 (2) Guidance not affirmed or updated.

17

7/22/08)(1) is the default color.
2008 Earnings Guidance (provided on : Key Considerations

Guidance for adjusted (non-GAAP) earnings per share (see Slide 35 for
reconciliation to GAAP): $3.75 to $3.95 (from $4.00 to $4.30 previously)
> Reduction in expectations reflects $35 to $45 mil. increase in expected raw
material inflation for the year compared to previous estimate, alongside weakening
end market demand, and incrementally weaker segment mix
Positive factors contributing to our outlook:
> Incremental cost synergies from Paxar integration ($60 to $70 mil.)
> Restructuring actions already announced ($25 to $30 mil. incremental to 2007)
> Other restructuring and ongoing productivity initiatives
> Price increases to partially offset raw material inflation
> Reduced loss from building RFID business ($10 mil.)
> Currency translation benefit of approx. 5% to top-line (E.P.S. benefit of ~ $0.16)
> Lower tax rate
Offsetting factors vs. 2007:
> Higher interest ($10 to $15 mil.) and equity-based comp expense (~ $10 mil.)
> Raw material inflation (~ 3.5% before cost-outs, or approx. $110 mil.)
> General inflation and reinvestment of savings for growth


2008 Earnings Guidance (provided on 7/22/08)(1):isKey Assumptions
the default color.

Current Assumptions Previous Assumptions
> Reported revenue up nearly 12%, > Reported revenue up 10% to 12%,
including approx. 5% benefit from including approx. 5% benefit from
currency, and 7% from acquisitions currency, and 7% from acquisitions
– Sales roughly flat on an organic
– Sales flat to down slightly on an
basis, with modest volume
organic basis… incrementally higher
growth offset by negative
sales benefit from pricing vs. April
price/mix
estimate
– Unfavorable segment mix vs. previous
assumption (slower growth in higher
variable margin businesses)
> Approx. 2.5% (~ $70 mil.)
> Raw material cost inflation of
approximately 3.5% (~ $110 mil.),
partially offset with benefit from global
sourcing strategies, material cost-outs,
and price increases
> >
Operating margin ~ 8% 8.5% to 9.0%
> >
Unchanged from previous Interest expense of $115 to $120 mil.
> >
Effective tax rate of 14% to 16% 15% - 18%
> >
Unchanged from previous Negligible change in shares

18

Second Quarter 2008 Overview

Net sales increased 20% over prior year; 1% decline in sales on an
organic basis
> Net effect of Paxar and DM Label acquisitions was approx. 14%
> Currency added 7% ($0.05 benefit to earnings per share)
Operating margin before restructuring and asset impairment charges
and transition costs associated with the Paxar integration declined by
130 basis points vs. prior year
> Decline reflects raw material and energy inflation, carryover of 2007 price
reductions in the roll materials business, and negative segment and
product mix
> Headwinds also included 50 basis points of margin compression from
addition of base Paxar business (margin of base business lower than
Company-average before integration savings)
> Margin improvement expected over balance of year, as benefits from
pricing and productivity actions are realized

37

Second Quarter 2008 Overview (continued) is the default color.

Effective tax rate for the quarter was 19%
> Annual effective tax rate for 2008 expected to be in the 14%-16% range
> Ongoing annual tax rate expected to be in the 17%-19% range for the
foreseeable future, subject to significant volatility from quarter to quarter
Reported E.P.S. of $0.93 includes $0.10 of restructuring charges, asset
impairment, and transition costs for Paxar integration, net of gain on sale
of investment
> $0.05 of transition costs associated with Paxar integration
> $0.09 of restructuring and asset impairment charges
> $0.04 gain on sale of investment
Adjusted E.P.S. of $1.03

38

19

Second Quarter 2008 Segment Overview

PRESSURE-SENSITIVE MATERIALS
Reported sales of $980 mil., up 11% compared with prior year
> Organic sales growth of approx. 3%, representing modest pick-up from Q1
pace
Change in sales for roll materials business by region, adjusted for the
effect of currency and intercompany sales:
> Europe up at mid single digit rate
> North America declined at low single digit rate
> Asia growth in mid teens
> South America up at low single digit rate
Graphics & Reflective business down low single digit rate before currency

Excluding restructuring charges and other items, operating margin
declined 170 basis points vs. prior year to 8.2%, as the negative effects of
raw material inflation and prior year price reductions more than offset the
initial benefits of price increases, restructuring and other productivity
initiatives
> Incremental benefit of pricing actions expected to be realized in second half
of the year

39

Second Quarter 2008 Segment Overview (continued)

RETAIL INFORMATION SERVICES
Reported sales of $438 mil., up 100% compared with prior year due to
the Paxar and DM Label acquisitions
> Organic sales decline of approx. 3%
> Continued weakness of domestic retail apparel market; sales growth
trend for products destined for European market remained positive, but
weakened considerably compared to pace delivered in last few quarters
Adjusting the prior year number to include pre-acquisition Paxar results
(see Slide 44), operating margin before transition costs, restructuring,
and other items declined 80 basis points to 7.0%, as integration savings
(approx. $20 mil.) and other productivity actions were more than offset
by the effects of:
> Lower volume (reduced fixed cost leverage)
> Employee-related, raw material and other cost inflation
> Incremental intangible amortization (approx. $5 mil.) and higher corporate
cost allocation (approx. $4 mil.) associated with Paxar

40

20

Paxar Integration Update

> Targeting approximately $120 mil. of annual synergies when complete;
roughly 85% of targeted synergies expected to be captured in
Company’s run rate by year-end*
> Total synergies of approximately $21 mil. in Q2, up from $18 mil. in Q1
> No change to anticipated cash costs of integration ($165 - $180 mil)
– $109 mil. of cash integration costs incurred since deal close
– Approximately $35 mil. in cash costs to be paid in second half of 2008
– Balance (approx. $30 mil.) to be paid in 2009/2010, over half of which
relates to IT investment

* Approx. 15% of this synergy is captured outside of RIS, due to in-sourcing of materials (benefits
41
PSM segment), and reduction in corporate expense

Second Quarter 2008 Segment Overview (continued)

OFFICE AND CONSUMER PRODUCTS
Reported sales of $255 mil., down 3% compared with prior year
> Organic sales decline of approx. 6%, due to weak end market demand in
North America and delay in orders related to back-to-school season
Excluding restructuring charges, operating margin improved by 110 basis
points to 17.3%, as the benefit of restructuring and other productivity
initiatives, as well as favorable product mix, more than offset inflation and
reduced fixed cost leverage associated with lower sales

OTHER SPECIALTY CONVERTING
Reported sales of $155 mil., down 4% compared with prior year
> Organic sales decline of approx. 9%, or approx. 7% when adjusted for exit
of low margin distribution business
Operating margin declined by 90 basis points to 3.5%, as the benefit of
productivity initiatives, as well as a reduction in the loss from RFID, was
more than offset by reduced fixed cost leverage and cost inflation

42

21

Second Quarter Margin Comparison Reconciliationtofor edge of screen. Medium gray
guidelines and far right
Effects of Paxar – RIS

Q2-08 Q2-07 Variance
($ in millions, except as noted)
Paxar1
Total RIS Total Fav (Unf)

Net Sales, as reported 438.2 219.4 207.5 426.9

2
Adjusted Non-GAAP Operating Income 30.5 21.3 12.0 33.3
2
Adjusted Non-GAAP Operating Margin 7.0% 9.7% 5.8% 7.8% (80) b.p.
1) For the 11 weeks of 2nd quarter prior to acquisition close (values provided by Paxar upon close -- unaudited results)
2) See Attachment A-4 to Exhibit 99.1

43


Reconciliation of Non-GAAP
Financial Measures to GAAP

44

22

Organic Sales Growth by Segment: 2007

Pressure Retail Office and Other Specialty
Sensitive Information Consumer Converting
($ in millions) Materials Services Products Businesses

2006 GAAP Sales $3,236.3 $667.7 $1,072.0 $599.9
Impact of 2007 Currency Changes $174.3 $16.7 $25.3 $15.6
2006 Adjusted Non-GAAP Sales $3,410.6 $684.4 $1,097.3 $615.5

2007 GAAP Sales $3,497.7 $1,174.5 $1,016.2 $619.4
Est. Impact of Acq.& Divestitures ($7.8) $486.6 ($9.2) ($1.4)
2006 Adjusted Non-GAAP Sales $3,505.5 $687.9 $1,025.4 $620.8

GAAP Sales Growth 8.1% 75.9% -5.2% 3.3%
Organic Sales Growth 2.8% 0.5% -6.6% 0.9%

45

OPERATING MARGIN BY SEGMENT

FY 2005 FY 2006 FY 2007

Pressure Sensitive Materials
Net Sales 3,114.5 3,236.3 3,497.7
Operating income, as reported 264.1 301.6 318.7
Operating margin, as reported 8.5% 9.3% 9.1%
Non-GAAP adjustments:
Restructuring costs, asset impairment
charges, and other items 23.0 9.3 13.8
Adjusted non-GAAP operating income 287.1 310.9 332.5
Adjusted non-GAAP operating margin 9.2% 9.6% 9.5%

Retail Information Services
Net Sales 630.4 667.7 1,174.5
Operating income, as reported 37.7 45.7 -4.0
Operating margin, as reported 6.0% 6.8% -0.3%
Transition costs, restructuring costs, asset
impairment charges, and other items 7.5 11.2 74.2
Prior period reported numbers restated to conform with Q4-07 change in inventory accounting methodology and
reclassification of units between segments.
46

23

OPERATING MARGIN BY SEGMENT

FY 2005 FY 2006 FY 2007

Office and Consumer Products
Net Sales 1,136.1 1,072.0 1,016.2
charges, and other items 21.8 (2.3) 4.8

Other Specialty Converting Businesses
Net Sales 592.5 599.9 619.4
Restructuring costs and asset impairment
charges 6.2 3.7 4.2
EBIT Impact of RFID (32.5) (31.8) (25.4)
Adj non-GAAP operating income ex-RFID 53.6 52.8 55.0
Adj non-GAAP operating margin ex-RFID 9.1% 8.8% 9.0%
Prior period reported numbers restated to conform with Q4-07 change in inventory accounting methodology and
reclassification of units between segments.
47

Earnings Per Share(1), GAAP vs. Adjusted

2008 Guidance
(provided on
7/22/08)(2)
2003 2004 2005 2006 2007

GAAP EPS 2.67 2.78 2.26 3.72 3.07 $3.35 to $3.55
0.22 0.27 0.40 0.27 0.49 ~ $0.25
charges, and other items
Loss (income) from discontinued
(0.25) 0.01 0.65 (0.15) - -
operations
Tax Expense on Repatriated Earnings - - 0.14 - - -
Transition costs associated with the Paxar
- - - - 0.35 ~ $0.15
integration
Adjusted EPS 2.64 3.06 3.45 3.84 3.91 $3.75 to $3.95

(1) Prior period reported numbers restated to conform with Q4-07 change in inventory accounting methodology.
Historical figures have NOT been adjusted to remove the contribution from businesses subsequently
divested or discontinued.
(2) Guidance not affirmed or updated

48

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ROTC*, GAAP vs. Adjusted

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007

GAAP
Average Invested Capital (5 point average) 2,421.0 2,671.1 2,717.5 2,667.5 3,649.8
Net Income 267.4 279.0 226.8 373.2 303.5
Addback: After-tax interest expense 42.4 44.0 46.0 45.7 85.1
Return on Average Total Capital 12.8% 12.1% 10.0% 15.7% 10.6%

Adjusted
Adj. Average Invested Capital (5 point average) 2,419.9 2,690.2 2,752.9 2,695.4 3,683.8
Net Income 267.4 279.0 226.8 373.2 303.5
Addback: After-tax interest expense 42.4 44.0 46.0 45.7 85.1
Addback: After-tax transition costs, restructuring
costs, asset impairment charges, impact of
discontinued ops, and other items -3.0 27.6 119.8 12.5 83.0
Adjusted Return on Average Total Capital 12.7% 13.0% 14.3% 16.0% 12.8%

* Prior period reported numbers restated to conform with Q4-07 change in inventory accounting methodology.
Historical figures have NOT been adjusted to remove the contribution from businesses subsequently divested or
discontinued.

49

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