1. AVERY DENNISON
Credit Suisse 2006 Chemical Conference
September 19, 2006
Daniel R. O’Bryant
Executive Vice President and Chief Financial Officer
Slide 1

2. Forward-Looking Statements
Certain information presented in this document or 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 U.S. Department of Justice (“DOJ”) criminal
investigation, as well as the European Commission (“EC”), Canadian Department of Justice, and 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 (including
purported class actions seeking treble damages for alleged unlawful competitive practices, and purported
class actions 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 a likely
fine by the EC in respect of certain employee misconduct in Europe); 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) potential adverse developments in legal proceedings
and/or investigations regarding competitive activities, including possible fines, penalties, judgments or
settlements; (2) the impact of economic conditions on underlying demand for the Company's products; (3)
the impact of competitors’ actions, including expansion in key markets, product offerings and pricing; (4) 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; and (5) the ability of the Company to achieve and sustain targeted cost
reductions.
The 2006 financial information presented in this document represents preliminary, unaudited financial
results. The document contains certain non-GAAP financial measures; a reconciliation of these measures to
the nearest GAAP measures is provided at the Company’s website and in attachments A-2 to A-4 of the
Company’s quarterly press release financials.

3. First Half 2006 At A Glance
• E.P.S. up 14% on lower sales (before restructuring
charges and discontinued ops), due to improved gross
profit margin, operating expense ratio, and tax rate
• Adjusted unit volume growth has improved
• The shortfall between top line growth and the Company’s
medium-term organic sales growth target of 4% - 6% is
explained by last year’s price-related share loss in North
America
– Anticipate 2 to 3 points of improvement in underlying
unit volume over the next few quarters
Slide 3

4. First Half 2006 At A Glance (continued)
• Slightly behind inflation curve in first half… expect
previously implemented selling price increases and
procurement savings in second half to neutralize
impact of inflation for the full year
• Projected savings from restructuring actions increased
to $85 to $100 mil. (annualized) when completed
Slide 4

5. Management Analysis of Underlying Sales Trends
(continuing operations)
Q2-05 Q3-05 Q4-05 Q1-06 Q2-06
Core volume growth (est.) 1.0% (1.1)% (4.6)% 1.6% 0.8%
Comparability adjustments(1) (1.0)% 0.8% 4.6% 0.4% 1.7%
“Underlying” volume growth 0.0% (0.3)% 0.0% 2.0% 2.5%
Other factors impacting reported sales growth:
Acquisitions, Net of
Divestitures 0.6% 0.3% 0.0% (0.3)% (1.4)%
Price/Mix + 2% + 2% + 1% + 1% + 1%
Currency 3.2% 0.8% (0.6)% (2.7)% (0.3)%
Reported Sales Growth 7.1% 2.0% (4.5)% (0.4)% (0.1)%
Adj. Organic Sales Growth(2) 2.3% 1.7% 0.7% 3.0% 3.2%
(1) Adjustments for comparability:
Q2-05 -- Shift in timing of back-to-school orders from Q3 to Q2, estimated short-term benefit of competitor plant strike in Europe, and final customer
inventory depletions related to 2004 buying ahead of price increase.
Q3-05 -- Shift in timing of back-to-school orders from Q3 to Q2.
Q4-05 -- Extra week of sales and pre-buy activities in 2004 ahead of price increase.
Q1-06 -- Decision to exit certain low margin private label business.
Q2-06 – Decision to exit certain low margin private label business, shift in timing of back-to-school orders from Q2 to Q3 (return to normal order
pattern), prior year short-term benefit of competitor plant strike in Europe.
(2) Reported Sales Growth less the impacts of foreign currency translation, acquisition and divestitures, and comparability adjustments
Slide 5

6. Medium-term top-line growth target in line
with historical average
Organic Sales Growth*
7.4%
4% to 6%
4.9%
4.7%
2.5%
1.2%
2000 2001 2002 2003 2004 2005 Target
-1.8%
* Excluding currency, acquisitions, and divestitures
Slide 6

7. Operating margins have improved…
quot;Corequot; Operating Margin*
Margin
(% of sales) impact of
11.0 option
expense
10.5
Guidance
10.0 Range
9.5
9.0
8.5
8.0
7.5
7.0
6.5
6.0
Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- 2006
03 03 03 03 04 04 04 04 05 05 05 05 est.
* Excludes restructuring charges and RFID spending
Slide 7

8. … and we expect substantial margin
expansion ahead
Sources of Change in Operating Margin
2008 vs. Today
? 11.0%
9.6%
2005 Productivity Price/Raw Capacity RFID Segment Mix Other 2008
TARGET
Materials Utilization Business
Slide 8
Realities

9. Overview of Today’s Portfolio
2005 Segment Mix
3-5 Yr Sales Operating
Sales Op Profit Growth Drivers Growth Target* Margin 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 down 18-20%
Consumer core products modestly
Products • 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 Slide 9

10. International operations growing faster-than-
average… and profitability is expanding
2005 Revenue 2005 Operating Margin**,
by Region International Operations
(before intergeographic
eliminations)
10.0%
Latin Other*
America
9.0%
Asia
8.0%
U.S.
Eastern 7.0%
Europe
6.0%
5.0%
Western
2003 2004 2005
Europe
* “Other” includes Canada, Australia, and South Africa
** Excluding restructuring charges
Slide 10

11. We’ve increased our participation in the rapidly
growing emerging markets…
Emerging Markets Share of Total Sales
2000 2005 2010
Contribution
to Overall
0.2 pts. 2.4 pts. 3.5 pts.
Growth:
Emerging Markets
Local Management Leveraging Global Capabilities
Slide 11

12. … and these markets are contributing
significantly to our profit growth and returns
Operating Profit from Emerging Markets*
($ millions)
> 200
~ 115
~ 40
2000 2005 2010
* Figures are approximate. Estimates do not include allocation of expenses incurred in North America
and Europe for direct support of businesses in emerging markets (particularly significant for RIS).
Largest single growth platform today Slide 12

13. 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
Slide 13

14. 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
Slide 14

15. Margin expansion is key near-term
priority for the Company
• Maintain our pricing rigor
• Targeting $85 to $100 million of annual savings from
restructuring actions currently underway
• Productivity improvement initiatives across all businesses
• Enterprise Lean Sigma to drive continuous improvement
Slide 15

16. Expect to generate significant free cash flow;
solid financial flexibility
• 2006 Free Cash Flow target (after cap ex and software
invt.) = $300 to $350 mil.
• Debt-To-Total Capital ratio currently below our target
range
• Priorities for use of free cash:
– Invest to grow business (including acquisitions)
– Maintain healthy dividend
– Reinitiate share repurchase program, as
appropriate
Slide 16

17. Expect continued modest increase to dividend
$1.80
30 consecutive years of dividend increase…
~ 13% compound annual growth
$1.60
$1.40
Dividends per share
$1.20
$1.00
$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
Slide 17

18. Key Takeaways
• Solid progress against near-term goals… balanced
strategy for growth and margin expansion
• Net restructuring savings of $45-$50 mil. in ’06,
incremental $40-$50 mil. in ’07
• Expect to accelerate organic sales growth over medium
term to 4-6% (in line with history)
– Rapidly growing emerging markets represent an increasing share
(> 20%) of portfolio
– Solid secular growth drivers for PSM and RIS segments
– Increasing marketing investment to accelerate growth of highly profitable
Printable Media (OCP segment)
– Horizons growth process embedded throughout Company
• Significant free cash flow potential… intend to reinitiate
share repurchase when appropriate
Slide 18