Larger Avery facilities in Europe

1
Avery Dennison Corporation IAMC 09.15.08
Avery Dennison Roger Nesti Director Corportate
Real Estate IAMC Oklahoma City Professional
Forum 09.15.08
2
Who we are. By AVY segment
IAMC 09.15.08
2007 Proforma Revenue By Segment
Other Specialty Converting 9
Office and Consumer Products 15
Pressure-sensitive Materials 52
Retail Information Services 24
2007 Net Sales (as reported) 6.3 billion
3
Office and Consumer Products IAMC
09.15.08
Printable Media categories (labels, index
dividers)
Sales 1.0B
4
Retail Information Services (RIS) IAMC
09.15.08
Retail tag, ticketing, brand and product
identification
Sales 1.2B
5
Pressure-sensitive Materials (PSM) IAMC
09.15.08
Supplier of base material for pressure-sensitive
label applications
Sales 3.5B
6
RFID
IAMC 09.15.08
Item-level tagging apparel, airline baggage,
pharmaceutical, etc.
Carton and pallet tagging
7
Forbes.com 09.09.08

• Avery Dennison's Cloudy ForecastRuthie Ackerman,
  09.09.08, 1200 PM ET
• On Tuesday, the label maker and office supplier
  slashed its fiscal year 2008 guidance because of
  further economic weakness in its markets.
  investors were disappointed. Avery shares tumbled
  10.1, or 5.05, to 44.95 in late-morning
  trading.

8
Challenges IAMC 09.15.08

• Facility Operating Expenses
• Raw Material Cost
• Utility Cost
• Transportation Cost
• Pricing Pressures

9
CRE Response.
IAMC 09.15.08

• Consolidations
• Rolled Materials customers expect 24-48 hr
  delivery
• Historically located in close proximity to
  customers
• May reverse trend in fewer DCs
• Leasing / subleasing at or below cost to third
  parties in order to reduce caring cost
• Demolition of obsolete facilities
• Reduces real estate taxes and insurance
• Eliminates utility cost, security, PM, etc.
• Consolidating operations within facilities
• Mothballing unused portions of operations