Dear reader,

Welcome to our second edition of the Insight Quarterly in 2022. This edition includes stories across multiple industry segments, featuring customer case studies, product innovations, and the latest market trends and insights. It's been an eventful quarter and I’m eager to share some of the highlights.

Good Q1 AD Performance
We’ve closed another successful quarter which wouldn’t have been possible without you. Thank you for your partnership, your continued loyalty, and your confidence in our business. Our strong performance comes at a time of continued global challenges. Despite the constrained supply chains, raw material shortages, and persisting inflationary pressures, we continue to do everything we can to meet the needs of our customers.

Increasing Capacity
We are currently not anticipating any significant disruption to our operations but continue to focus on building resilience and agility in our supply chain globally. We recently announced the expansion of our manufacturing capacity with the opening of our new site in Brazil, designed to meet the increased demand for digital ID technologies in the region. You can read more about that below.

Continued Innovations
We have great new innovations to share including the new AD Twist inlays designed to perform in challenging industrial environments. This quarter has also brought us a flurry of award accolades including the PharmaPack Award for our Bluetooth RTI solution powered by Wiliot, the RFID Journal Award for AD Dot, the world’s smallest, flexible UHF RFID inlay, and atma.io became a Fast Company Awards Finalist for its sustainability features. We have also natively enabled our atma.io connected product cloud with blockchain distributed ledger technology from Hedera.

Sustainability Partnership
Sustainability is a core value of Avery Dennison and guides how we operate, do business, and partner with others. I am pleased to say that our atma.io connected product cloud has started to utilize the Hedera network to account for carbon emissions of billions of unique items. This exciting partnership with HBAR Foundation and the use of Hedera network services will enable new decarbonization use cases while driving the adoption of digital ID technologies across a variety of industries.

I hope you enjoy this edition of Insights Quarterly and as always, if you have any feedback or questions, please don't hesitate to reach out to us.

Sincerely,

Francisco Melo

Vice President & General Manager

Avery Dennison Smartrac

Insights + trends:

To meet growing demand, Avery Dennison starts operations of a new RFID factory in Brazil

Avery Dennison’s new RFID factory starts to manufacture a wide variety of inlay designs and also opens the doors of an interactive innovation center. The unit is the first in Brazil and the eighth in the world to start operating. Don't miss to join Francisco Melo and Fabiana Wu introducing the location through this video.

Avery Dennison and Wiliot: A strategic partnership to build and scale the future of the IoT

Read why we have strengthened our commitment to Wiliot’s passive sensor tags and why Bluetooth Low Energy is a smart technology which will help to create an intelligent and fully connected IoT.

Innovation:

Avery Dennison’s new AD Twist inlays:

Designed for challenging industrial environments

When it comes to demanding environments where metallic surfaces are a factor, customers have to rely on robust RFID technology that meets several requirements.

Avery Dennison launches new dual frequency RFID inlays for retail and medical applications

Dual-frequency inlays can provide powerful all-in-one solutions for inventory management and product authentication, enabling a consistent customer experience regardless of channel, and in parallel offer significant cost advantages.

Sustainability:

atma.io connected product cloud to utilize the Hedera network to account for carbon emissions of billions of unique items

Thanks to a new groundbreaking partnership with The HBAR Foundation on sustainability initiatives, our customers now can access one of the most cost-efficient distributed ledger technology platforms to drive decarbonization goals in an effective way.

Trade shows + events:

We participate in leading RFID and technology events around the world and are attending or hosting virtual events such as online conferences and webinars. Each is an important touchpoint and great opportunity for us to get in touch with you — our customers and business partners.

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