# EDGAR Filing Document

**Accession Number:** 0000008818
**File Stem:** 0001193125-23-022084
**Filing Date:** 2023-2
**Character Count:** 104070
**Document Hash:** e2a0343955cf4e5710ed804db5509bca
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-022084.hdr.sgml**: 20230202

**ACCESSION NUMBER**: 0001193125-23-022084

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 52

**CONFORMED PERIOD OF REPORT**: 20230202

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230202

**DATE AS OF CHANGE**: 20230202

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Avery Dennison Corp
- **CENTRAL INDEX KEY:** 0000008818
- **STANDARD INDUSTRIAL CLASSIFICATION:** CONVERTED PAPER & PAPERBOARD PRODS (NO CONTAINERS/BOXES) [2670]
- **IRS NUMBER:** 951492269
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-07685
- **FILM NUMBER:** 23578736

**BUSINESS ADDRESS:**
- **STREET 1:** 8080 NORTON PARKWAY
- **CITY:** MENTOR
- **STATE:** OH
- **ZIP:** 44060
- **BUSINESS PHONE:** 440-534-6000

**MAIL ADDRESS:**
- **STREET 1:** 8080 NORTON PARKWAY
- **CITY:** MENTOR
- **STATE:** OH
- **ZIP:** 44060

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AVERY DENNISON CORPORATION
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AVERY INTERNATIONAL CORP
- **DATE OF NAME CHANGE:** 19901030

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AVERY PRODUCTS CORP
- **DATE OF NAME CHANGE:** 19760518

?xml version="1.0" encoding="utf-8" ? 8-K

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### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

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### FORM 8-K

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#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d)

#### of the Securities Exchange Act of 1934

#### Date of Report (Date of earliest event reported) February 2, 2023

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## AVERY DENNISON CORPORATION

#### (Exact name of registrant as specified in its charter)

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---

| | | |
|:---|:---|:---|
| **Delaware** | **1-7685** | **95-1492269** |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |

---

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| | |
|:---|:---|
| **8080 Norton Parkway**<br> **Mentor, Ohio** | **44060** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

#### Registrant's telephone number, including area code (440) 534-6000

#### (Former name or former address, if changed since last report.)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange**<br> **on which registered** |
| Common stock, $1 par value | AVY | New York Stock Exchange |
| 1.25% Senior Notes due 2025 | AVY25 | Nasdaq Stock Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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#### Section 2 - Financial Information

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.**  |

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Avery Dennison Corporation's (the "Company's") press release, dated February 2, 2023, announcing the Company's preliminary, unaudited financial results for the fourth quarter and full year of 2022 and guidance for the 2023 fiscal year is attached hereto as Exhibit 99.1 and is being furnished (not filed) with this Form 8-K.

The Company's supplemental presentation materials, dated February 2, 2023, regarding the Company's preliminary, unaudited financial review and analysis for the fourth quarter and full year of 2022 and guidance for the 2023 fiscal year is attached hereto as Exhibit 99.2 and is being furnished (not filed) with this Form 8-K. The press release and presentation materials are also available on the Company's website at <u>www.investors.averydennison.com</u>.

The Company will discuss its preliminary, unaudited financial results during a webcast and teleconference to be held on February 2, 2023, at 1:00 p.m. ET. To access the webcast and teleconference, please go to the Company's website at www.investors.averydennison.com.

#### Section 9 - Financial Statements and Exhibits

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.**  |

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(d) <u>Exhibits</u>.

---

| | |
|:---|:---|
| 99.1 | [Press release, dated February 2, 2023, announcing the Company's preliminary, unaudited financial results for the fourth quarter and full year of 2022.](d243122dex991.htm) |
| 99.2 | [Supplemental presentation materials, dated February 2, 2023, regarding the Company's preliminary, unaudited financial review and analysis for the fourth quarter and full year of 2022.](d243122dex992.htm) |

---

#### "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this Form 8-K and the exhibits attached hereto are forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, and financial or other business targets, are subject to certain risks and uncertainties.

The Company believes that the most significant risk factors that could affect its financial performance in the near term include: (i) the impacts to underlying demand for the Company's products from global economic conditions, political uncertainty, and changes in environmental standards and governmental regulations, including as a result of COVID-19; (ii) the cost and availability of raw materials; (iii) competitors' actions, including pricing, expansion in key markets, and product offerings; (iv) the degree to which higher costs can be offset with productivity measures and/or passed on to customers through price increases, without a significant loss of volume; (v) foreign currency fluctuations; and (vi) the execution and integration of acquisitions.

Actual results and trends may differ materially from historical or anticipated results depending on a variety of factors, including but are not limited to, risks and uncertainties relating to the following:

• The Company's Business – fluctuations in demand affecting sales to customers; fluctuations in the cost and availability of raw materials and energy; changes in the Company's markets due to competitive conditions, technological developments, environmental standards, laws and regulations, and customer preferences; the impact of competitive products and pricing; execution and integration of acquisitions; selling prices; customer and supplier concentrations or consolidations; financial condition of distributors; outsourced manufacturers; product and service quality; timely development and market acceptance of new products, including sustainable or sustainably-sourced products; investment in development activities and new production facilities; successful implementation of new

------

manufacturing technologies and installation of manufacturing equipment; the Company's ability to generate sustained productivity improvement; the Company's ability to achieve and sustain targeted cost reductions; and collection of receivables from customers

• International Operations – worldwide and local economic and market conditions; changes in political conditions, including those related to the Russian invasion of Ukraine; and fluctuations in foreign currency exchange rates and other risks associated with foreign operations, including in emerging markets

• COVID-19

• Income Taxes – fluctuations in tax rates; changes in tax laws and regulations, and uncertainties associated with interpretations of such laws and regulations; retention of tax incentives; outcome of tax audits; and the realization of deferred tax assets

• Information Technology – disruptions in information technology systems or data security breaches, including cyber-attacks or other intrusions to network security; and successful installation of new or upgraded information technology systems

• Human Capital – recruitment and retention of employees and collective labor arrangements

• The Company's Indebtedness – credit risks; the Company's ability to obtain adequate financing arrangements and maintain access to capital; fluctuations in interest rates; volatility of financial markets; and compliance with the Company's debt covenants

• Ownership of the Company's Stock – potential significant variability of the Company's stock price and amounts of future dividends and share repurchases

• Legal and Regulatory Matters – protection and infringement of intellectual property and impact of legal and regulatory proceedings, including with respect to environmental, anti-corruption, health and safety, and trade compliance

• Other Financial Matters – fluctuations in pension costs and goodwill impairment

For a more detailed discussion of these factors, see Part I, Item 1A. "Risk Factors" and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2021 Form 10-K, filed with the Securities and Exchange Commission on February 23, 2022, and subsequent quarterly reports on Form 10-Q. The forward-looking statements included in this Form 8-K are made only as of the date of this Form 8-K, and the Company undertakes no obligation to update these statements to reflect subsequent events or circumstances, other than as may be required by law.

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<u>EXHIBIT INDEX</u> 

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| | |
|:---|:---|
| Exhibit<br>No. | Description |
| 99.1 | [Press release, dated February 2, 2023, announcing the Company's preliminary, unaudited financial results for the fourth quarter and full year of 2022.](d243122dex991.htm) |
| 99.2 | [Supplemental presentation materials, dated February 2, 2023, regarding the Company's preliminary, unaudited financial review and analysis for the fourth quarter and full year of 2022.](d243122dex992.htm) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

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#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
|  |  | **AVERY DENNISON CORPORATION** |
| Date: February 2, 2023 | By: | /s/ Gregory S. Lovins |
|  |  | Name: Gregory S. Lovins |
|  |  | Title: Senior Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**![LOGO](g243122g0201135501522.jpg)

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**For Immediate Release** 

**AVERY DENNISON ANNOUNCES** 

**FOURTH QUARTER AND FULL YEAR 2022 RESULTS** 

**Highlights:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● FY22 Reported EPS of $9.21, up 4%

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| | |
|:---|:---|
| ¡ | Adjusted EPS (non-GAAP) of $9.15, up 3%, up 11% ex. currency  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● FY22 Net sales increased 7.5% to $9.0 billion

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| | |
|:---|:---|
| ¡ | Sales growth ex. currency (non-GAAP) of 13.1%  |

---

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| | |
|:---|:---|
| ¡ | Organic sales growth (non-GAAP) of 9.5%  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 4Q22 Reported EPS of $1.51

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| | |
|:---|:---|
| ¡ | Adjusted EPS (non-GAAP) of $1.65, down 23%  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 4Q22 Net sales declined 7.2% to $2.0 billion

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| | |
|:---|:---|
| ¡ | Sales change ex. currency (non-GAAP) of (0.8%)  |

---

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| | |
|:---|:---|
| ¡ | Organic sales change (non-GAAP) of (0.9%)  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● FY23 Reported EPS guidance of $8.85 to $9.25

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| | |
|:---|:---|
| ¡ | Adjusted EPS guidance of $9.15 to $9.55  |

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**MENTOR, Ohio, February 2, 2023** – Avery Dennison Corporation (NYSE:AVY) today announced preliminary, unaudited results for its fourth quarter and full year ended December 31, 2022. Non-GAAP financial measures referenced in this release are reconciled from GAAP in the attached financial schedules. Unless otherwise indicated, comparisons are to the same period in the prior year.

"We delivered impressive results in 2022, once again achieving double-digit earnings growth on a constant currency basis," said Mitch Butier, Chairman and CEO. "Both our Materials and Solutions Groups delivered strong top-and bottom-line results while accelerating adoption of Intelligent Labels.

"Our strong performance came amidst a very challenging environment that was capped by volume declines in the fourth quarter due to significant inventory reductions downstream," added Butier. "Recent volume trends are indicative of patterns in previous slowdowns; we have been activating countermeasures accordingly.

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"Despite the challenges in the macro environment, we remain well-positioned to continue our long track record of earnings growth in 2023, including accelerating growth in Intelligent Labels," said Butier.

"Once again, I want to thank our entire team for continuing to raise their game to address the unique challenges at hand and deliver value for all our stakeholders."

**<u>Fourth Quarter 2022 Results by Segment</u>** 

**Materials Group** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Reported sales decreased 5% to $1.4 billion. Sales were up 2% ex. currency and 2% on an organic basis.

¡ Label materials sales were up by low-single digits on an organic basis, with growth in both high-value and base product categories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;∎ Pricing more than offset a low-double-digit volume decline, driven by inventory
destocking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;∎ On an organic basis, sales were down low-to-mid single digits in North America; sales were up low-double digits in Western Europe and mid-single digits in emerging markets.

¡ Sales increased by low-single digits organically in the Graphics and Reflective Solutions businesses.

¡ Sales increased by low-double digits organically in the combined Performance Tapes and Medical businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Reported operating margin decreased 110 basis points to 10.7%. Adjusted EBITDA (non-GAAP) decreased by 15% to $184 million, with adjusted EBITDA margin (non-GAAP) of 12.8%.

**Solutions Group** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Reported sales decreased 11% to $585 million. Sales were down 7% ex. currency and 8% on an organic basis.

¡ High-value categories sales were up mid-single digits on an organic basis.

¡ Sales decreased by high-teens organically in base solutions, as customers adjusted inventory levels.

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| | |
|:---|:---|
| ¡ | Enterprise-wide Intelligent Labels sales for the full year were up approximately 15% on an organic basis.  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Reported operating margin decreased 590 basis points to 8.8%. Adjusted EBITDA decreased by 27% to $93 million, with
adjusted EBITDA margin of 15.9%.

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**<u>Other</u>** 

**Balance Sheet and Capital Deployment** 

During 2022, the company deployed $40 million for acquisitions and returned $618 million in cash to shareholders, up $217 million, through a combination of share repurchases and dividends. The company repurchased 2.2 million shares at an aggregate cost of $380 million. Net of dilution from long-term incentive awards, the company's year-end share count was down 2.0 million compared to the same time last year.

The company's balance sheet remains strong, with ample capacity to continue executing its long-term capital allocation strategy. Net debt to adjusted EBITDA (non-GAAP) was 2.2 at the end of the fourth quarter.

In January 2023, the company extended the maturity date of its revolving credit facility ("Revolver") to February 2026 and increased its capacity to $1.2 billion in support of the company's continued growth.

**Income Taxes** 

The company's reported effective tax rate was 27.4% for the fourth quarter and 24.2% for the full year. The company's adjusted tax rate (non-GAAP) was 21.1% for the fourth quarter and 24.7% for the full year.

The company's 2023 adjusted tax rate is expected to be in the mid-twenty percent range based on current tax regulations.

**Cost Reduction Actions** 

During 2022, the company realized approximately $26 million in pre-tax savings from restructuring, net of transition costs, and incurred pre-tax restructuring charges of approximately $8 million.

**<u>Guidance</u>** 

In its supplemental presentation materials, "Fourth Quarter and Full Year 2022 Financial Review and Analysis," the company provides a list of factors that it believes will contribute to its 2023 financial results. Based on the factors listed and other assumptions, the company expects 2023 reported earnings per share of $8.85 to $9.25.

Excluding an estimated $0.30 per share impact of restructuring charges and other items, the company expects 2023 adjusted earnings per share of $9.15 to $9.55.

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*For more details on the company's results, see the summary tables accompanying this news release, as well as the supplemental presentation materials, "Fourth Quarter and Full Year 2022 Financial Review and Analysis," posted on the company's website at www.investors.averydennison.com, and furnished to the SEC on Form 8-K.* 

*Throughout this release and the supplemental presentation materials, amounts on a per share basis reflect fully diluted shares outstanding.* 

**About Avery Dennison** 

Avery Dennison Corporation (NYSE: AVY) is a global materials science and digital identification solutions company that provides branding and information labeling solutions, including pressure-sensitive materials, radio-frequency identification (RFID) inlays and tags, and a variety of converted products and solutions. The company designs and manufactures a wide range of labeling and functional materials that enhance branded packaging, carry or display information that connects the physical and the digital, and improve customers' product performance. The company serves an array of industries worldwide, including home and personal care, apparel, e-commerce, logistics, food and grocery, pharmaceuticals and automotive. The company employs approximately 36,000 employees in more than 50 countries. Reported sales in 2022 were $9.0 billion. Learn more at www.averydennison.com.

\# \# \#

**"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995** 

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. These forward-looking statements, and financial or other business targets, are subject to certain risks and uncertainties.

We believe that the most significant risk factors that could affect our financial performance in the near term include: (i) the impacts to underlying demand for our products from global economic conditions, political uncertainty, and changes in environmental standards and governmental regulations, including as a result of COVID-19; (ii) the cost and availability of raw materials; (iii) competitors' actions, including pricing, expansion in key markets, and product offerings; (iv) the degree to which higher costs can be offset with productivity measures and/or passed on to customers through price increases, without a significant loss of volume; (v) foreign currency fluctuations; and (vi) the execution and integration of acquisitions.

Actual results and trends may differ materially from historical or anticipated results depending on a variety of factors, including but are not limited to, risks and uncertainties relating to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Our Business – fluctuations in demand affecting sales to customers; fluctuations in the cost and availability of raw
materials and energy; changes in our markets due to competitive conditions, technological developments, environmental standards, laws and regulations, and customer preferences; the impact of competitive products and pricing; execution and
integration of acquisitions; selling prices; customer and supplier concentrations or consolidations; financial condition of distributors; outsourced manufacturers; product and service quality; timely development and market acceptance of new
products, including sustainable or sustainably-sourced products; investment in development activities and new production facilities; successful implementation of new manufacturing technologies and installation of manufacturing equipment; our ability
to generate sustained productivity improvement; our ability to achieve and sustain targeted cost reductions; and collection of receivables from customers

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● International Operations – worldwide and local economic and market conditions; changes in political conditions,
including those related to the Russian invasion of Ukraine; and fluctuations in foreign currency exchange rates and other risks associated with foreign operations, including in emerging markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● COVID-19

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Income Taxes – fluctuations in tax rates; changes in tax laws and regulations, and uncertainties associated with
interpretations of such laws and regulations; retention of tax incentives; outcome of tax audits; and the realization of deferred tax assets

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Information Technology – disruptions in information technology systems or data security breaches, including
cyber-attacks or other intrusions to network security; and successful installation of new or upgraded information technology systems

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Human Capital – recruitment and retention of employees; and collective labor arrangements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Our Indebtedness – credit risks; our ability to obtain adequate financing arrangements and maintain access to capital;
fluctuations in interest rates; volatility of financial markets; and compliance with our debt covenants

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Ownership of Our Stock – potential significant variability of our stock price and amounts of future dividends and share
repurchases

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Legal and Regulatory Matters – protection and infringement of intellectual property; impact of legal and regulatory
proceedings, including with respect to environmental, anti-corruption, health and safety, and trade compliance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Other Financial Matters – fluctuations in pension costs and goodwill impairment

For a more detailed discussion of these factors, see "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2021 Form 10-K, filed with the Securities and Exchange Commission on February 23, 2022, and subsequent quarterly reports on Form 10-Q.

**The forward-looking statements included in this document are made only as of the date of this document, and we undertake no obligation to update these statements to reflect subsequent events or circumstances, other than as may be required by law.** 

**For more information and to listen to a live broadcast or an audio replay of the quarterly conference call with analysts, visit the Avery Dennison website at www.investors.averydennison.com** 

**<u>Contacts</u>:** 

**Media Relations:** 

**Holly Billik (440) 463-7292** 

**holly.billik@averydennison.com** 

**Investor Relations:** 

**John Eble (440) 534-6290** 

**john.eble@averydennison.com** 

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** | &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** | &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** | &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** | &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** | &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** | &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** | &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** | &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** | &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** | &nbsp;&nbsp;&nbsp; **Fourth Quarter Financial Summary - Preliminary, unaudited** |
| &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (In millions, except % and per share amounts) |
|  | **4Q** | **4Q** | **% Sales Change vs. PY** | **% Sales Change vs. PY** | **% Sales Change vs. PY** |  |  |  |  |  |
|  | **<u>2022</u>** | **<u>2021</u>** | **<u>Reported</u>** | **<u>Ex. Currency</u>** | **<u>Organic</u>** |  |  |  |  |  |
|  |  |  |  | (a) | (b) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net sales, by segment: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Materials Group | **$1441.3** | **$1524.1** | **(5.4%)** | &nbsp;&nbsp;&nbsp;&nbsp;2.2% | &nbsp;&nbsp;&nbsp;&nbsp;2.2% |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Solutions Group | **584.6** | **659.1** | **(11.3%)** | (7.3%) | (7.7%) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Total net sales | **$2025.9** | **$2183.2** | **(7.2%)** | (0.8%) | (0.9%) |  |  |  |  |  |
|  | **As Reported (GAAP)** | **As Reported (GAAP)** | **As Reported (GAAP)** | **As Reported (GAAP)** | **As Reported (GAAP)** | **Adjusted Non-GAAP (c)** | **Adjusted Non-GAAP (c)** | **Adjusted Non-GAAP (c)** | **Adjusted Non-GAAP (c)** | **Adjusted Non-GAAP (c)** |
|  | **4Q** | **4Q** | **%** |  **<u>% of Sales</u>** |  **<u>% of Sales</u>** | **4Q** | **4Q** | **%** | **% of Sales** | **% of Sales** |
|  | **<u>2022</u>** | **<u>2021</u>** | **<u>Change</u>** | **<u>2022</u>** | **<u>2021</u>** | **<u>2022</u>** | **<u>2021</u>** | **<u>Change</u>** | **<u>2022</u>** | **<u>2021</u>** |
| &nbsp;&nbsp;&nbsp; Operating income (loss) / operating margins before interest, other non-operating expense (income), and taxes, by segment: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Materials Group | **$153.9** | **$179.4** |  | **10.7%** | **11.8%** | $150.4 | $182.6 |  | 10.4% | 12.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Solutions Group | **51.6** | **96.6** |  | **8.8%** | **14.7%** | 53.1 | 89.0 |  | 9.1% | 13.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate expense (d) | **(19.1)** | **(12.5)** |  |  |  | (15.6) | (18.8) |  |  |  |
| &nbsp;&nbsp;&nbsp; Total operating income / operating margins before interest, other non-operating expense (income), and taxes | **$186.4** | **$263.5** | **(29%)** | **9.2%** | **12.1%** | $187.9 | $252.8 | (26%) | 9.3% | 11.6% |
| &nbsp;&nbsp;&nbsp; Interest expense | **$22.5** | **$20.0** |  |  |  | $22.5 | $20.0 |  |  |  |
| &nbsp;&nbsp;&nbsp; Other non-operating expense (income), net (e) | **($5.3)** | **($0.5)** |  |  |  | ($5.3) | ($2.0) |  |  |  |
| &nbsp;&nbsp;&nbsp; Income before taxes | **$169.2** | **$244.0** | **(31%)** | **8.4%** | **11.2%** | $170.7 | $234.8 | (27%) | 8.4% | 10.8% |
| &nbsp;&nbsp;&nbsp; Provision for income taxes | **$46.3** | **$60.9** |  |  |  | $36.0 | $56.0 |  |  |  |
| &nbsp;&nbsp;&nbsp; Equity method investment (losses) gains | **---** | **($0.4)** |  |  |  | **---** | ($0.4) |  |  |  |
| &nbsp;&nbsp;&nbsp; Net income | **$122.9** | **$182.7** | **(33%)** | **6.1%** | **8.4%** | $134.7 | $178.4 | (24%) | 6.6% | 8.2% |
| &nbsp;&nbsp;&nbsp; Net income per common share, assuming dilution | **$1.51** | **$2.19** | **(31%)** |  |  | $1.65 | $2.13 | (23%) |  |  |
| &nbsp;&nbsp;&nbsp; Free Cash Flow (f) |  |  |  |  |  | $244.5 | $158.5 |  |  |  |

---

Previously reported segment results have been reclassified to reflect our new operating structure.

See accompanying schedules A-4 to A-10 for reconciliations from GAAP to non-GAAP financial measures.

(a) *Sales change ex. currency* refers to the increase or decrease in net sales, excluding the estimated impact of
foreign currency translation and the reclassification of sales between segments, and, where applicable, an extra week in our fiscal year and the calendar shift resulting from the extra week in the prior fiscal year, and currency adjustment for
transitional reporting of highly inflationary economies. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior period results translated at current period average exchange rates to exclude the
effect of currency fluctuations.

(b) *Organic sales change* refers to sales change ex. currency, excluding the estimated impact of acquisitions and
product line divestitures.

(c) Excluded impact of restructuring charges and other items.

(d) As reported "Corporate expense" for the fourth quarter of 2022 included outcome of legal proceedings of $4.6 and
gain on venture investment of ($1.1).

As reported "Corporate expense" for the fourth quarter of 2021 included gain on venture investment of ($6.3).

(e) As reported "Other non-operating expense (income), net" for the fourth
quarter of 2021 included pension plan settlement and curtailment losses of $1.5.

(f) *Free cash flow* refers to cash flow provided by operating activities, less payments for property, plant and
equipment, software and other deferred charges, plus proceeds from sales of property, plant and equipment, plus (minus) net proceeds from insurance and sales (purchases) of investments. Free cash flow is also adjusted for, where applicable, certain
acquisition-related transaction costs.

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** | &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** | &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** | &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** | &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** | &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** | &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** | &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** | &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** | &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** | &nbsp;&nbsp;&nbsp; **Full Year Financial Summary - Preliminary, unaudited<u> </u>** |
| &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) | &nbsp;&nbsp;&nbsp; (in millions, except % and per share amounts) |
|  |  |  | **% Sales Change vs. PY** | **% Sales Change vs. PY** | **% Sales Change vs. PY** |  |  |  |  |  |
|  | **<u>2022</u>** | **<u>2021</u>** | **<u>Reported</u>** | **<u>Ex. Currency</u>** | **<u>Organic</u>** |  |  |  |  |  |
|  |  |  |  | (a) | (b) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net sales, by segment: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Materials Group | **$6495.1** | **$6206.5** | **4.6%** | 11.0% | 11.2% |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Solutions Group | **2544.2** | **2201.8** | **15.6%** | 19.1% | 5.0% |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Total net sales | **$9039.3** | **$8408.3** | **7.5%** | 13.1% | 9.5% |  |  |  |  |  |
|  | **As Reported (GAAP)** | **As Reported (GAAP)** | **As Reported (GAAP)** | **As Reported (GAAP)** | **As Reported (GAAP)** | **Adjusted Non-GAAP (c)** | **Adjusted Non-GAAP (c)** | **Adjusted Non-GAAP (c)** | **Adjusted Non-GAAP (c)** | **Adjusted Non-GAAP (c)** |
|  |  |  | **%** | **% of Sales** | **% of Sales** |  |  | **%** | **% of Sales** | **% of Sales** |
|  | **<u>2022</u>** | **<u>2021</u>** | **<u>Change</u>** | **<u>2022</u>** | **<u>2021</u>** | **<u>2022</u>** | **<u>2021</u>** | **<u>Change</u>** | **<u>2022</u>** | **<u>2021</u>** |
| &nbsp;&nbsp;&nbsp; Operating income (loss) / operating margins before interest, other non-operating expense (income), and taxes, by segment: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Materials Group | **$859.3** | **$883.3** |  | **13.2%** | **14.2%** | $845.9 | $857.6 |  | 13.0% | 13.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Solutions Group | **302.3** | **257.2** |  | **11.9%** | **11.7%** | 310.1 | 293.8 |  | 12.2% | 13.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate expense (d) | **(87.6)** | **(81.8)** |  |  |  | (82.6) | (87.1) |  |  |  |
| &nbsp;&nbsp;&nbsp; Total operating income / operating margins before interest, other non-operating expense (income), and taxes | **$1074.0** | **$1058.7** | **1%** | **11.9%** | **12.6%** | $1073.4 | $1064.3 | 1% | 11.9% | 12.7% |
| &nbsp;&nbsp;&nbsp; Interest expense | **$84.1** | **$70.2** |  |  |  | $84.1 | $70.2 |  |  |  |
| &nbsp;&nbsp;&nbsp; Other non-operating expense (income), net (e) | **($9.4)** | **($4.1)** |  |  |  | ($9.4) | ($6.6) |  |  |  |
| &nbsp;&nbsp;&nbsp; Income before taxes | **$999.3** | **$992.6** | **1%** | **11.1%** | **11.8%** | $998.7 | $1000.7 |  | 11.0% | 11.9% |
| &nbsp;&nbsp;&nbsp; Provision for income taxes | **$242.2** | **$248.6** |  |  |  | $246.3 | $249.8 |  |  |  |
| &nbsp;&nbsp;&nbsp; Equity method investment (losses) gains | **---** | **($3.9)** |  |  |  |  | ($3.9) |  |  |  |
| &nbsp;&nbsp;&nbsp; Net income | **$757.1** | **$740.1** | **2%** | **8.4%** | **8.8%** | $752.4 | $747.0 | 1% | 8.3% | 8.9% |
| &nbsp;&nbsp;&nbsp; Net income per common share, assuming dilution | **$9.21** | **$8.83** | **4%** |  |  | $9.15 | $8.91 | 3% |  |  |
| &nbsp;&nbsp;&nbsp; Free Cash Flow (f) |  |  |  |  |  | $667.3 | $797.7 |  |  |  |

---

Previously reported segment results have been reclassified to reflect our new operating structure.

See accompanying schedules A-4 to A-10 for reconciliations from GAAP to non-GAAP financial measures.

(a) *Sales change ex. currency* refers to the increase or decrease in net sales, excluding the estimated impact of
foreign currency translation and the reclassification of sales between segments, and, where applicable, an extra week in our fiscal year and the calendar shift resulting from the extra week in the prior fiscal year, and currency adjustment for
transitional reporting of highly inflationary economies. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior period results translated at current period average exchange rates to exclude the
effect of currency fluctuations. **  

(b) *Organic sales change* refers to sales change ex. currency, excluding the estimated impact of acquisitions and
product line divestitures. **  

(c) Excluded impact of restructuring charges and other items.

(d) As reported "Corporate expense" for fiscal year 2022 included outcomes of legal proceedings of $5.3, severance
and related costs of $.8, and gain on venture investment of ($1.1).

As reported "Corporate expense" for fiscal year 2021 included gain on venture investment of ($6.3) and severance and related costs of $1. <br>

(e) As reported "Other non-operating expense (income), net" for fiscal year
2021 included pension plan settlement and curtailment losses of $2.5.

(f) *Free cash flow* r efers to cash flow provided by operating activities, less payments for property, plant and
equipment, software and other deferred charges, plus proceeds from sales of property, plant and equipment, plus (minus) net proceeds from insurance and sales (purchases) of investments. Free cash flow is also adjusted for, where applicable, certain
acquisition-related transaction costs. **  

------

**A-1** 

**AVERY DENNISON CORPORATION** 

**PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME** 

**(In millions, except per share amounts)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** |
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec. 31, 2022** | **Jan. 1, 2022** | **Dec. 31, 2022** | **Jan. 1, 2022** |
|  Net sales | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025.9 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2183.2 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9039.3 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8408.3 |
|  Cost of products sold | 1525.7 | 1598.1 | 6635.1 | 6095.5 |
|  Gross profit | 500.2 | 585.1 | 2404.2 | 2312.8 |
|  Marketing, general and administrative expense | 312.3 | 332.3 | 1330.8 | 1248.5 |
|  Other expense (income), net<sup>(1)</sup> | 1.5 | (10.7) | (0.6) | 5.6 |
|  Interest expense | 22.5 | 20.0 | 84.1 | 70.2 |
|  Other non-operating expense (income), net<sup>(2)</sup> | (5.3) | (0.5) | (9.4) | (4.1) |
|  Income before taxes | 169.2 | 244.0 | 999.3 | 992.6 |
|  Provision for income taxes | 46.3 | 60.9 | 242.2 | 248.6 |
|  Equity method investment (losses) gains | --- | (0.4) | --- | (3.9) |
|  Net income | $122.9 | $182.7 | $757.1 | $740.1 |
|  Per share amounts: |  |  |  |  |
|  Net income per common share, assuming dilution | $1.51 | $2.19 | $9.21 | $8.83 |
|  Weighted average number of common shares outstanding, assuming dilution | 81.6 | 83.6 | 82.2 | 83.8 |

---

<sup>(1)</sup> "Other expense (income), net" for the fourth quarter of 2022 included outcome of legal proceedings of $4.6, partially offset by gain on venture investment of $1.1, gain on sales of assets of $.9, and severance and related costs, net of reversals of $1.1. 

"Other expense (income), net" for the fourth quarter of 2021 included gain on venture investments of $18.1, partially offset by severance and related costs of $5.4, asset impairment and lease cancellation charges of $1.2, and transaction and related costs of $.8.

"Other expense (income), net" for fiscal year 2022 included gain on venture investments of $13.5 and gain on sales of assets of $1.4, partially offset by severance and related costs of $7.6 and asset impairment charges of $.1, outcomes of legal proceedings of $6.3, and transaction and related costs of $.3.

"Other expense (income), net" for fiscal year 2021 included severance and related costs of $10.5, asset impairment and lease cancellation charges of $3.1, transaction and related costs of $20.9, and loss on sale of assets, net, of $.2, partially offset by gain on venture investments of $23, gain on sale of product line of $5.7, and outcomes of legal proceedings, net, of $.4.

<sup>(2)</sup> "Other non-operating expense (income), net" included pension plan settlement and curtailment losses of $1.5 and $2.5 in the fourth quarter and fiscal year 2021, respectively. 

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------

**A-2** 

**AVERY DENNISON CORPORATION** 

**PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS** 

**(In millions)** 

---

| | | |
|:---|:---|:---|
| | **(UNAUDITED)** | **(UNAUDITED)** |
| <br>**ASSETS** | **Dec. 31, 2022** | **Jan. 1, 2022** |
|  Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $167.2 | $162.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts receivable, net | 1374.4 | 1424.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 1009.9 | 907.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 230.5 | 240.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 2782.0 | 2734.6 |
|  Property, plant and equipment, net | 1540.2 | 1477.7 |
|  Goodwill and other intangibles resulting from business acquisitions, net | 2702.7 | 2792.9 |
|  Deferred tax assets | 115.1 | 130.2 |
|  Other assets | 810.5 | 836.2 |
|  | $7950.5 | $7971.6 |
|  **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
|  Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings and current portion of long-term debt and finance leases | $598.6 | $318.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 1339.3 | 1298.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | 861.9 | 930.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 2799.8 | 2547.9 |
|  Long-term debt and finance leases | 2503.5 | 2785.9 |
|  Other long-term liabilities | 615.0 | 713.4 |
|  Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock | 124.1 | 124.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital in excess of par value | 879.3 | 862.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 4414.6 | 3880.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock at cost | (3021.8) | (2659.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (364.0) | (282.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity | 2032.2 | 1924.4 |
|  | $7950.5 | $7971.6 |

---

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------

**A-3** 

**AVERY DENNISON CORPORATION** 

**PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**(In millions)** 

---

| | | |
|:---|:---|:---|
|  | **(UNAUDITED)** | **(UNAUDITED)** |
|  | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec. 31, 2022** | **Jan. 1, 2022** |
|  **Operating Activities:** | **Operating Activities:** |  |
|  Net income | $757.1 | $740.1 |
|  Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation | 177.4 | 167.3 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization | 113.3 | 76.8 |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses and sales returns | 50.1 | 35.7 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 47.4 | 37.2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Pension plan settlement loss |  | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred taxes and other non-cash taxes | 18.4 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other non-cash expense and loss (income and gain), net | 23.5 | 10.1 |
|  Changes in assets and liabilities and other adjustments  | (226.2) | (24.6) |
|  Net cash provided by operating activities | 961.0 | 1046.8 |
|  **Investing Activities:** |  |  |
|  Purchases of property, plant and equipment | (278.1) | (255.0) |
|  Purchases of software and other deferred charges | (20.4) | (17.1) |
|  Proceeds from sales of property, plant and equipment | 2.3 | 1.1 |
|  Proceeds from insurance and sales (purchases) of investments, net | 1.9 | 3.1 |
|  Proceeds from sale of product line and investments in businesses | 1.1 | 7.6 |
|  Payments for acquisitions, net of cash acquired, and investments in businesses | (39.5) | (1477.6) |
|  Net cash used in investing activities | (332.7) | (1737.9) |
|  **Financing Activities:** |  |  |
|  Net increase (decrease) in borrowings with maturities of three months or less | 34.6 | 259.2 |
|  Additional long-term borrowings |  | 791.7 |
|  Repayments of long-term debt and finance leases | (6.3) | (13.4) |
|  Dividends paid | (238.9) | (220.6) |
|  Share repurchases | (379.5) | (180.9) |
|  Net (tax withholding) proceeds related to stock-based compensation | (25.1) | (25.4) |
|  Other | --- | (6.3) |
|  Net cash (used in) provided by financing activities | (615.2) | 604.3 |
|  Effect of foreign currency translation on cash balances | (8.6) | (2.8) |
|  Increase (decrease) in cash and cash equivalents | 4.5 | (89.6) |
|  Cash and cash equivalents, beginning of year | 162.7 | 252.3 |
|  Cash and cash equivalents, end of year | $167.2 | $162.7 |

---

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------

**A-4** 

**Reconciliation of Non-GAAP Financial Measures from GAAP** 

We report our financial results in conformity with accounting principles generally accepted in the United States of America, or GAAP, and also communicate with investors using certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. These non-GAAP financial measures are intended to supplement the presentation of our financial results prepared in accordance with GAAP. Based on feedback from investors and financial analysts, we believe that the supplemental non-GAAP financial measures we provide are useful to their assessments of our performance and operating trends, as well as liquidity.

Our non-GAAP financial measures exclude the impact of certain events, activities or strategic decisions. The accounting effects of these events, activities or decisions, which are included in the GAAP financial measures, may make it more difficult to assess our underlying performance in a single period. By excluding the accounting effects, positive or negative, of certain items (e.g., restructuring charges, outcomes of certain legal proceedings, certain effects of strategic transactions and related costs, losses from debt extinguishments, gains or losses from curtailment or settlement of pension obligations, gains or losses on sales of certain assets, gains or losses on venture investments and other items), we believe that we are providing meaningful supplemental information that facilitates an understanding of our core operating results and liquidity measures. While some of the items we exclude from GAAP financial measures recur, they tend to be disparate in amount, frequency or timing.

We use these non-GAAP financial measures internally to evaluate trends in our underlying performance, as well as to facilitate comparison to the results of competitors for quarters and year-to-date periods, as applicable.

We use the non-GAAP financial measures described below in the accompanying news release.

*Sales change ex. currency* refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation and the reclassification of sales between segments, and, where applicable, an extra week in our fiscal year and the calendar shift resulting from the extra week in the prior fiscal year, and currency adjustment for transitional reporting of highly inflationary economies. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior period results translated at current period average exchange rates to exclude the effect of currency fluctuations.

*Organic sales change* refers to sales change ex. currency, excluding the estimated impact of acquisitions and product line divestitures.

We believe that sales change ex. currency and organic sales change assist investors in evaluating the sales change from the ongoing activities of our businesses and enhance their ability to evaluate our results from period to period.

*Adjusted operating income* refers to income before taxes; interest expense; other non-operating expense (income), net; and other expense (income), net.

*Adjusted EBITDA* refers to adjusted operating income before depreciation and amortization.

*Adjusted operating margin* refers to adjusted operating income as a percentage of net sales.

*Adjusted EBITDA margin* refers to adjusted EBITDA as a percentage of net sales.

*Adjusted tax rate* refers to the full-year GAAP tax rate, adjusted to exclude certain unusual or infrequent events that are expected to significantly impact that rate, such as effects of certain discrete tax planning actions, impacts related to enactments of comprehensive tax law changes, and other items.

*Adjusted net income* refers to income before taxes, tax-effected at the adjusted tax rate, and adjusted for tax-effected restructuring charges and other items.

*Adjusted net income per common share, assuming dilution (adjusted EPS)* refers to adjusted net income divided by the weighted average number of common shares outstanding, assuming dilution.

We believe that adjusted operating margin, adjusted EBITDA margin, adjusted net income, and adjusted EPS assist investors in understanding our core operating trends and comparing our results with those of our competitors.

*Net debt to adjusted EBITDA ratio* refers to total debt (including finance leases) less cash and cash equivalents, divided by adjusted EBITDA for the last twelve months. We believe that the net debt to adjusted EBITDA ratio assists investors in assessing our leverage position.

*Free cash flow* refers to cash flow provided by operating activities, less payments for property, plant and equipment, software and other deferred charges, plus proceeds from sales of property, plant and equipment, plus (minus) net proceeds from insurance and sales (purchases) of investments. Free cash flow is also adjusted for, where applicable, certain acquisition-related transaction costs. We believe that free cash flow assists investors by showing the amount of cash we have available for debt reductions, dividends, share repurchases, and acquisitions.

Reconciliations are provided in accordance with Regulations G and S-K and reconcile our non-GAAP financial measures with the most directly comparable GAAP financial measures.

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------

**A-5** 

**AVERY DENNISON CORPORATION** 

**PRELIMINARY RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES** 

**(In millions, except % and per share amounts)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** |
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec. 31, 2022** | **Jan. 1, 2022** | **Dec. 31, 2022** | **Jan. 1, 2022** |
|  **Reconciliation from GAAP to Non-GAAP operating margins:** |  |  |  |  |
|  Net sales | $2025.9 | $2183.2 | $9039.3 | $8408.3 |
|  Income before taxes | $169.2 | $244.0 | $999.3 | $992.6 |
|  Income before taxes as a percentage of net sales | 8.4% | 11.2% | 11.1% | 11.8% |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | $22.5 | $20.0 | $84.1 | $70.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-operating expense (income), net | (5.3) | (0.5) | (9.4) | (4.1) |
|  Operating income before interest expense, other non-operating expense (income), and taxes | $186.4 | $263.5 | $1074.0 | $1058.7 |
|  Operating margins | 9.2% | 12.1% | 11.9% | 12.6% |
|  Income before taxes | $169.2 | $244.0 | $999.3 | $992.6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Severance and related costs, net of reversals | (1.1) | 5.4 | 7.6 | 10.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairment and lease cancellation charges |  | 1.2 | 0.1 | 3.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transaction and related costs |  | 0.8 | 0.3 | 20.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outcomes of legal proceedings, net | 4.6 |  | 6.3 | (0.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on venture investments | (1.1) | (18.1) | (13.5) | (23.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sales of assets, net | (0.9) |  | (1.4) | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of product line |  |  |  | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 22.5 | 20.0 | 84.1 | 70.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-operating expense (income), net | (5.3) | (0.5) | (9.4) | (4.1) |
|  Adjusted operating income (non-GAAP) | $187.9 | $252.8 | $1073.4 | $1064.3 |
|  Adjusted operating margins (non-GAAP) | 9.3% | 11.6% | 11.9% | 12.7% |
|  **Reconciliation from GAAP to Non-GAAP net income:** |  |  |  |  |
|  As reported net income | $122.9 | $182.7 | $757.1 | $740.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges and other items<sup>(1)</sup> | 1.5 | (10.7) | (0.6) | 5.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension plan settlement and curtailment losses |  | 1.5 |  | 2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect on restructuring charges and other items and impact of adjusted tax rate | 10.3 | 4.9 | (4.1) | (1.2) |
|  Adjusted net income (non-GAAP) | $134.7 | $178.4 | $752.4 | $747.0 |

---

<sup>(1)</sup> Included pretax restructuring charges, transaction and related costs, outcomes of legal proceedings, gain on venture investments, gain/loss on sales of assets, and gain on sale of product line.

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------

**A-5** 

**(continued)** 

**AVERY DENNISON CORPORATION** 

**PRELIMINARY RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES** 

**(In millions, except % and per share amounts)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** |
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec. 31, 2022** | **Jan. 1, 2022** | **Dec. 31, 2022** | **Jan. 1, 2022** |
|  **Reconciliation from GAAP to Non-GAAP net income per common share:** |  |  |  |  |
|  As reported net income per common share, assuming dilution | $1.51 | $2.19 | $9.21 | $8.83 |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments per common share, net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges and other items<sup>(1)</sup> | 0.02 | (0.13) | (0.01) | 0.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension plan settlement and curtailment losses |  | 0.01 |  | 0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect on restructuring charges and other items and impact of adjusted tax rate | 0.12 | 0.06 | (0.05) | (0.01) |
|  Adjusted net income per common share, assuming dilution (non-GAAP) | $1.65 | $2.13 | $9.15 | $8.91 |
|  Weighted average number of common shares outstanding, assuming dilution | 81.6 | 83.6 | 82.2 | 83.8 |

---

Our adjusted tax rate was 21.1% and 24.7% for the three and twelve months ended Dec. 31, 2022, respectively, and 23.9% and 25% for the three and twelve months ended Jan. 1, 2022, respectively.

<sup>(1)</sup> Included pretax restructuring charges, transaction and related costs, outcomes of legal proceedings, gain on venture investments, gain/loss on sales of assets, and gain on sale of product line.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** | **(UNAUDITED)** |
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec. 31, 2022** | **Jan. 1, 2022** | **Dec. 31, 2022** | **Jan. 1, 2022** |
|  **Reconciliation of free cash flow:** |  |  |  |  |
|  Net cash provided by operating activities | $345.8 | $284.0 | $961.0 | $1046.8 |
|  Purchases of property, plant and equipment | (94.9) | (124.4) | (278.1) | (255.0) |
|  Purchases of software and other deferred charges | (6.5) | (7.3) | (20.4) | (17.1) |
|  Proceeds from sales of property, plant and equipment | 0.1 |  | 2.3 | 1.1 |
|  Proceeds from insurance and sales (purchases) of investments, net |  | 1.9 | 1.9 | 3.1 |
|  Payments for certain acquisition-related transaction costs | --- | 4.3 | 0.6 | 18.8 |
|  Free cash flow (non-GAAP) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;244.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;158.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;667.3 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;797.7 |

---

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------

**A-6** 

**AVERY DENNISON CORPORATION** 

**PRELIMINARY SUPPLEMENTARY INFORMATION** 

**(In millions, except %)** 

**(UNAUDITED)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Fourth Quarter Ended** | **Fourth Quarter Ended** | **Fourth Quarter Ended** | **Fourth Quarter Ended** | **Fourth Quarter Ended** | **Fourth Quarter Ended** |
|  | NET SALES | NET SALES | OPERATING INCOME (LOSS) | OPERATING INCOME (LOSS) | OPERATING MARGINS | OPERATING MARGINS |
|  | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
|  Materials Group | $1441.3 | $1524.1 | $153.9 | $179.4 | 10.7% | 11.8% |
|  Solutions Group | 584.6 | 659.1 | 51.6 | 96.6 | 8.8% | 14.7% |
|  Corporate Expense | N/A | N/A | (19.1) | (12.5) | N/A | N/A |
|  TOTAL FROM OPERATIONS | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025.9 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2183.2 | $186.4 | $263.5 | 9.2% | 12.1% |

---

**RECONCILIATION FROM GAAP TO NON-GAAP SUPPLEMENTARY INFORMATION** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fourth Quarter Ended** | **Fourth Quarter Ended** | **Fourth Quarter Ended** | **Fourth Quarter Ended** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2021 |
|  **<u>Materials Group</u>** |  |  |  |  |
|  Operating income and margins, as reported | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;153.9 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;179.4 | 10.7% | 11.8% |
|  Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Severance and related costs, net of reversals | (3.5) | 1.9 | (0.3%) | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairment charges |  | 0.9 |  | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp; Transaction and related costs | --- | 0.4 | --- | --- |
|  Adjusted operating income and margins (non-GAAP) | $150.4 | $182.6 | 10.4% | 12.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 33.7 | 34.7 | 2.4% | 2.3% |
|  Adjusted EBITDA and margins (non-GAAP) | $184.1 | $217.3 | 12.8% | 14.3% |
|  **<u>Solutions Group</u>** |  |  |  |  |
|  Operating income and margins, as reported | $51.6 | $96.6 | 8.8% | 14.7% |
|  Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Severance and related costs | 2.4 | 3.5 | 0.4% | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairment and lease cancellation charges |  | 0.3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transaction and related costs |  | 0.4 |  | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on sales of assets | (0.9) |  | (0.1%) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on venture investment | --- | (11.8) | --- | (1.8%) |
|  Adjusted operating income and margins (non-GAAP) | $53.1 | $89.0 | 9.1% | 13.5% |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 39.8 | 37.9 | 6.8% | 5.8% |
|  Adjusted EBITDA and margins (non-GAAP) | $92.9 | $126.9 | 15.9% | 19.3% |

---

Previously reported segment results have been reclassified to reflect our new operating structure.

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------

**A-7** 

**AVERY DENNISON CORPORATION** 

**PRELIMINARY SUPPLEMENTARY INFORMATION** 

**(In millions, except %)** 

**(UNAUDITED)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | NET SALES | NET SALES | OPERATING INCOME (LOSS) | OPERATING INCOME (LOSS) | OPERATING MARGINS | OPERATING MARGINS |
|  | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
|  Materials Group | $6495.1 | $6206.5 | $859.3 | $883.3 | 13.2% | 14.2% |
|  Solutions Group | 2544.2 | 2201.8 | 302.3 | 257.2 | 11.9% | 11.7% |
|  Corporate Expense | N/A | N/A | (87.6) | (81.8) | N/A | N/A |
|  TOTAL FROM OPERATIONS | $9039.3 | $8408.3 | $1074.0 | $1058.7 | 11.9% | 12.6% |

---

**RECONCILIATION FROM GAAP TO NON-GAAP SUPPLEMENTARY INFORMATION** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | 2022 | 2021 | 2022 | 2021 |
|  **<u>Materials Group</u>** |  |  |  |  |
|  Operating income and margins, as reported | $859.3 | $883.3 | 13.2% | 14.2% |
|  Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Severance and related costs, net of reversals | (1.0) | 2.8 |  | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairment charges |  | 2.2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transaction and related costs |  | 1.6 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on venture investment | (12.4) |  | (0.2%) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Outcomes of legal proceedings, net<sup>(1)</sup> |  | (26.3) |  | (0.4%) |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of product line |  | (5.7) |  | (0.1%) |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of assets | --- | (0.3) | --- | --- |
|  Adjusted operating income and margins (non-GAAP) | $845.9 | $857.6 | 13.0% | 13.8% |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 135.8 | 141.9 | 2.1% | 2.3% |
|  Adjusted EBITDA and margins (non-GAAP) | $981.7 | $999.5 | 15.1% | 16.1% |
|  **<u>Solutions Group</u>** |  |  |  |  |
|  Operating income and margins, as reported | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;302.3 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;257.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7% |
|  Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Severance and related costs | 7.8 | 6.7 | 0.3% | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairment and lease cancellation charges | 0.1 | 0.9 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Outcomes of legal proceedings, net<sup>(2)</sup> | 1 | 25.9 | 0.1% | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp; Transaction and related costs | 0.3 | 19.3 |  | 0.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sales of assets | (1.4) | 0.5 | (0.1%) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on venture investments | --- | (16.7) | --- | (0.8%) |
|  Adjusted operating income and margins (non-GAAP) | $310.1 | $293.8 | 12.2% | 13.3% |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 154.9 | 102.2 | 6.1% | 4.7% |
|  Adjusted EBITDA and margins (non-GAAP) | $465 | $396 | 18.3% | 18.0% |

---

Previously reported segment results have been reclassified to reflect our new operating structure.

<sup>(1)</sup> 2021 YTD included an indirect tax credit based on a Brazilian Supreme Federal Court ruling of $28.4, partially offset by outcome of certain legal proceedings of $2.1. 

<sup>(2)</sup> 2021 YTD included contingent liability related to patent infringement lawsuit of $26.6, partially offset by Brazil indirect tax credit based on Brazilian Supreme Federal Court ruling of $.7. 

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------

**A-8** 

**AVERY DENNISON CORPORATION** 

**PRELIMINARY SUPPLEMENTARY INFORMATION** 

**Reconciliation of Adjusted EBITDA Margins** 

**(In millions, except %)** 

**(UNAUDITED)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **QTD** | **QTD** | **YTD** | **YTD** |
| **<u>Materials Group</u>** | **4Q22** | **4Q21** | **FY22** | **FY21** |
|  Net sales | $1441.3 | $1524.1 | $6495.1 | $6206.5 |
|  Operating income before interest expense,<br>other non-operating expense (income) and taxes, as reported | $153.9 | $179.4 | $859.3 | $883.3 |
|  Operating margins, as reported | 10.7% | 11.8% | 13.2% | 14.2% |
|  <u>Non-GAAP adjustments:</u> |  |  |  |  |
|  Restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Severance and related costs, net of reversals | $(3.5) | $1.9 | $(1.0) | $2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset impairment and lease cancellation charges |  | 0.9 |  | 2.2 |
|  Other items | --- | 0.4 | (12.4) | (30.7) |
|  Adjusted operating income (non-GAAP) | $150.4 | $182.6 | $845.9 | $857.6 |
|  Adjusted operating margins (non-GAAP) | 10.4% | 12.0% | 13.0% | 13.8% |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | $33.7 | $34.7 | $135.8 | $141.9 |
|  Adjusted EBITDA (non-GAAP) | $184.1 | $217.3 | $981.7 | $999.5 |
|  Adjusted EBITDA margins (non-GAAP) | 12.8% | 14.3% | 15.1% | 16.1% |
| **<u>Solutions Group</u>** | **4Q22** | **4Q21** | **FY22** | **FY21** |
|  Net sales | $584.6 | $659.1 | $2544.2 | $2201.8 |
|  Operating income (loss) before interest expense,<br>other non-operating expense (income) and taxes, as reported | $51.6 | $96.6 | $302.3 | $257.2 |
|  Operating margins, as reported | 8.8% | 14.7% | 11.9% | 11.7% |
|  <u>Non-GAAP adjustments:</u> |  |  |  |  |
|  Restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Severance and related costs | $2.4 | $3.5 | $7.8 | $6.7 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset impairment and lease cancellation charges |  | 0.3 | 0.1 | 0.9 |
|  Other items | (0.9) | (11.4) | (0.1) | 29.0 |
|  Adjusted operating income (non-GAAP) | $53.1 | $89.0 | $310.1 | $293.8 |
|  Adjusted operating margins (non-GAAP) | 9.1% | 13.5% | 12.2% | 13.3% |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | $39.8 | $37.9 | $154.9 | $102.2 |
|  Adjusted EBITDA (non-GAAP) | $92.9 | $126.9 | $465.0 | $396.0 |
|  Adjusted EBITDA margins (non-GAAP) | 15.9% | 19.3% | 18.3% | 18.0% |
| **<u>Corporate expense</u>** | **4Q22** | **4Q21** | **FY22** | **FY21** |
|  Corporate expense, as reported | $(19.1) | $(12.5) | $(87.6) | $(81.8) |
|  <u>Non-GAAP adjustments:</u> |  |  |  |  |
|  Restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Severance and related costs | $--- | $--- | $0.8 | $1.0 |
|  Other items | 3.5 | (6.3) | 4.2 | (6.3) |
|  Corporate expense (non-GAAP) | $(15.6) | $(18.8) | $(82.6) | $(87.1) |
| **<u>Total Company</u>** | **4Q22** | **4Q21** | **FY22** | **FY21** |
|  Net sales | $2025.9 | $2183.2 | $9039.3 | $8408.3 |
|  Operating income before interest expense,<br>other non-operating expense (income) and taxes, as reported | $186.4 | $263.5 | $1074.0 | $1058.7 |
|  Operating margins, as reported | 9.2% | 12.1% | 11.9% | 12.6% |
|  <u>Non-GAAP adjustments:</u> |  |  |  |  |
|  Restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Severance and related costs | $(1.1) | $5.4 | $7.6 | $10.5 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset impairment and lease cancellation charges |  | 1.2 | 0.1 | 3.1 |
|  Other items | 2.6 | (17.3) | (8.3) | (8.0) |
|  Adjusted operating income (non-GAAP) | $187.9 | $252.8 | $1073.4 | $1064.3 |
|  Adjusted operating margins (non-GAAP) | 9.3% | 11.6% | 11.9% | 12.7% |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | $73.5 | $72.6 | $290.7 | $244.1 |
|  Adjusted EBITDA (non-GAAP) | $261.4 | $325.4 | $1364.1 | $1308.4 |
|  Adjusted EBITDA margins (non-GAAP) | 12.9% | 14.9% | 15.1% | 15.6% |

---

Previously reported segment results have been reclassified to reflect our new operating structure.

-more-

------

**A-9** 

**AVERY DENNISON CORPORATION** 

**PRELIMINARY SUPPLEMENTARY INFORMATION** 

**Reconciliation of Adjusted EBITDA Margins and Net Debt to Adjusted EBITDA** 

**(In millions, except %)** 

**(UNAUDITED)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **QTD** | **QTD** | **QTD** | **QTD** |
| **Total Company** | **1Q22** | **2Q22** | **3Q22** | **4Q22** |
|  Net sales | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2349.3 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2347.0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2317.1 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025.9 |
|  Operating income before interest expense,<br>other non-operating expense (income) and taxes, as reported | $287.9 | $307.4 | $292.3 | $186.4 |
|  Operating margins, as reported | 12.3% | 13.1% | 12.6% | 9.2% |
|  <u>Non-GAAP adjustments:</u> |  |  |  |  |
|  Restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Severance and related costs, net of reversals | $0.9 | $3.1 | $4.7 | $(1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset impairment and lease cancellation charges |  |  | 0.1 |  |
|  Other items | (2.5) | 0.3 | (8.7) | 2.6 |
|  Adjusted operating income (non-GAAP) | $286.3 | $310.8 | $288.4 | $187.9 |
|  Adjusted operating margins (non-GAAP) | 12.2% | 13.2% | 12.4% | 9.3% |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | $72.0 | $73.2 | $72.0 | $73.5 |
|  Adjusted EBITDA (non-GAAP) | $358.3 | $384.0 | $360.4 | $261.4 |
|  Adjusted EBITDA margins (non-GAAP) | 15.3% | 16.4% | 15.6% | 12.9% |
|  Total Debt |  |  |  | $3102.1 |
|  Less: Cash and cash equivalents |  |  |  | 167.2 |
|  Net Debt |  |  |  | $2934.9 |
|  Net Debt to Adjusted EBITDA LTM\* (non-GAAP) |  |  |  | 2.2 |

---

\*LTM = Last twelve months (1Q22 to 4Q22)

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------

**A-10** 

**AVERY DENNISON CORPORATION** 

**PRELIMINARY SUPPLEMENTARY INFORMATION** 

**(UNAUDITED)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Fourth Quarter 2022** | **Fourth Quarter 2022** | **Fourth Quarter 2022** |
| | Total<br> Company | Materials<br> Group | Solutions<br> Group |
|  **Reconciliation from GAAP to Non-GAAP sales change** |  |  |  |
|  Reported net sales change | (7.2%) | (5.4%) | (11.3%) |
| &nbsp;&nbsp;&nbsp;&nbsp; Reclassification of sales between segments |  | 0.2% | (0.5%) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation | 6.4% | 7.4% | 4.5% |
|  Sales change ex. currency (non-GAAP)<sup>(1)</sup> | (0.8%) | 2.2% | (7.3%) |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisitions | (0.1%) | --- | (0.4%) |
|  Organic sales change (non-GAAP)<sup>(1)</sup> | (0.9%) | 2.2% | (7.7%) |
|  | **Full Year 2022** | **Full Year 2022** | **Full Year 2022** |
|  | Total<br> Company | Materials<br> Group | Solutions<br> Group |
|  **Reconciliation from GAAP to Non-GAAP sales change** |  |  |  |
|  Reported net sales change | 7.5% | 4.6% | 15.6% |
| &nbsp;&nbsp;&nbsp;&nbsp; Reclassification of sales between segments |  | 0.3% | (0.7%) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation | 5.6% | 6.0% | 4.2% |
|  Sales change ex. currency (non-GAAP)<sup>(1)</sup> | 13.1% | 11.0% | 19.1% |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisitions | (3.6%) | 0.2% | (14.1%) |
|  Organic sales change (non-GAAP)<sup>(1)</sup> | 9.5% | 11.2% | 5.0% |

---

<sup>(1)</sup> Totals may not sum due to rounding.

## Exhibit 99.2

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Exhibit 99.2 Fourth Quarter and Full Year 2022 Financial Review and Analysis (preliminary, unaudited) February 2, 2023 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 1

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Safe Harbor Statement 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. These forward-looking statements, and ﬁnancial or other business targets, are subject to certain risks and uncertainties. We believe that the most signiﬁcant risk factors that could affect our ﬁnancial performance in the near term include: (i) the impacts to underlying demand for our products from global economic conditions, political uncertainty, and changes in environmental standards and governmental regulations, including as a result of COVID-19; (ii) the cost and availability of raw materials; (iii) competitors' actions, including pricing, expansion in key markets, and product offerings; (iv) the degree to which higher costs can be offset with productivity measures and/or passed on to customers through price increases, without a signiﬁcant loss of volume; (v) foreign currency ﬂuctuations; and (vi) the execution and integration of acquisitions. Actual results and trends may differ materially from historical or anticipated results depending on a variety of factors, including but are not limited to, risks and uncertainties relating to the following: ● Our Business – ﬂuctuations in demand affecting sales to customers; ﬂuctuations in the cost and availability of raw materials and energy; changes in our markets due to competitive conditions, technological developments, environmental standards, laws and regulations, and customer preferences; the impact of competitive products and pricing; execution and integration of acquisitions; selling prices; customer and supplier concentrations or consolidations; ﬁnancial condition of distributors; outsourced manufacturers; product and service quality; timely development and market acceptance of new products, including sustainable or sustainably-sourced products; investment in development activities and new production facilities; successful implementation of new manufacturing technologies and installation of manufacturing equipment; our ability to generate sustained productivity improvement; our ability to achieve and sustain targeted cost reductions; and collection of receivables from customers ● International Operations – worldwide and local economic and market conditions; changes in political conditions, including those related to the Russian invasion of Ukraine; and ﬂuctuations in foreign currency exchange rates and other risks associated with foreign operations, including in emerging markets ● COVID-19 ● Income Taxes – ﬂuctuations in tax rates; changes in tax laws and regulations, and uncertainties associated with interpretations of such laws and regulations; retention of tax incentives; outcome of tax audits; and the realization of deferred tax assets ● Information Technology – disruptions in information technology systems or data security breaches, including cyber-attacks or other intrusions to network security; and successful installation of new or upgraded information technology systems ● Human Capital – recruitment and retention of employees; and collective labor arrangements ● Our Indebtedness – credit risks; our ability to obtain adequate ﬁnancing arrangements and maintain access to capital; ﬂuctuations in interest rates; volatility of ﬁnancial markets; and compliance with our debt covenants ● Ownership of Our Stock – potential signiﬁcant variability of our stock price and amounts of future dividends and share repurchases ● Legal and Regulatory Matters – protection and infringement of intellectual property; impact of legal and regulatory proceedings, including with respect to environmental, anti-corruption, health and safety, and trade compliance ● Other Financial Matters – ﬂuctuations in pension costs and goodwill impairment For a more detailed discussion of these factors, see "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2021 Form 10-K, ﬁled with the Securities and Exchange Commission on February 23, 2022, and subsequent quarterly reports on Form 10-Q. The forward-looking statements included in this document are made only as of the date of this document, and we undertake no obligation to update these statements to reﬂect subsequent events or circumstances, other than as may be required by law. February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 2

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Use of Non-GAAP Financial Measures This presentation contains certain non-GAAP ﬁnancial measures as deﬁned by SEC rules. We report our ﬁnancial results in conformity with accounting principles generally accepted in the United States of America, or GAAP, and also communicate with investors using certain non-GAAP ﬁnancial measures. These non-GAAP ﬁnancial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP ﬁnancial measures. These non-GAAP ﬁnancial measures are intended to supplement the presentation of our ﬁnancial results prepared in accordance with GAAP. Based on feedback from investors and ﬁnancial analysts, we believe that the supplemental non-GAAP ﬁnancial measures we provide are useful to their assessments of our performance and operating trends, as well as liquidity. In accordance with Regulations G and S-K, reconciliations of non-GAAP ﬁnancial measures from the most directly comparable GAAP ﬁnancial measures, including limitations associated with these non-GAAP ﬁnancial measures, are provided in the appendix to this document and/or ﬁnancial schedules accompanying the earnings news release for the quarter (see Attachments A-4 through A-10 to news release dated February 2, 2023). Our non-GAAP ﬁnancial measures exclude the impact of certain events, activities or strategic decisions. The accounting effects of these events, activities or decisions, which are included in the GAAP ﬁnancial measures, may make it more difﬁcult to assess our underlying performance in a single period. By excluding the accounting effects, positive or negative, of certain items (e.g., restructuring charges, outcomes of certain legal proceedings, certain effects of strategic transactions and related costs, losses from debt extinguishments, gains or losses from curtailment or settlement of pension obligations, gains or losses on sales of certain assets, gains or losses on venture investments and other items), we believe that we are providing meaningful supplemental information that facilitates an understanding of our core operating results and liquidity measures. While some of the items we exclude from GAAP ﬁnancial measures recur, they tend to be disparate in amount, frequency or timing. We use these non-GAAP ﬁnancial measures internally to evaluate trends in our underlying performance, as well as to facilitate comparison to the results of competitors for quarters and year-to-date periods, as applicable. We use the non-GAAP ﬁnancial measures described below in this presentation. • Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation and the reclassiﬁcation of sales between segments, and, where applicable, an extra week in our ﬁscal year and the calendar shift resulting from the extra week in the prior ﬁscal year, and currency adjustment for transitional reporting of highly inﬂationary economies. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior period results translated at current period average exchange rates to exclude the effect of currency ﬂuctuations. • Organic sales change refers to sales change ex. currency, excluding the estimated impact of acquisitions and product line divestitures. We believe that sales change ex. currency and organic sales change assist investors in evaluating the sales change from the ongoing activities of our businesses and enhance their ability to evaluate our results from period to period. We believe that the following measures assist investors in understanding our core operating trends and comparing our results with those of our competitors. • Adjusted operating income refers to income before taxes; interest expense; other non-operating expense (income), net; and other expense (income), net. • Adjusted EBITDA refers to adjusted operating income before depreciation and amortization. • Adjusted EBITDA ex. currency refers to the change in adjusted EBITDA on a constant currency basis. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior period results translated at current period average exchange rates to exclude the effect of currency ﬂuctuations. • Adjusted operating margin refers to adjusted operating income as a percentage of net sales. • Adjusted EBITDA margin refers to adjusted EBITDA as a percentage of net sales. • Adjusted tax rate refers to the full-year GAAP tax rate, adjusted to exclude certain unusual or infrequent events that are expected to signiﬁcantly impact that rate, such as effects of certain discrete tax planning actions, impacts related to enactments of comprehensive tax law changes, and other items. • Adjusted net income refers to income before taxes, tax-effected at the adjusted tax rate, and adjusted for tax-effected restructuring charges and other items. • Adjusted net income per common share, assuming dilution (adjusted EPS) refers to adjusted net income divided by the weighted average number of common shares outstanding, assuming dilution. • Adjusted EPS ex. currency refers to the change in adjusted net income per common share, assuming dilution, on a constant currency basis. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior period results translated at current period average exchange rates to exclude the effect of currency ﬂuctuations. • Net debt to adjusted EBITDA ratio refers to total debt (including ﬁnance leases) less cash and cash equivalents, divided by adjusted EBITDA for the last twelve months. We believe that the net debt to adjusted EBITDA ratio assists investors in assessing our leverage position. • Return on total capital (ROTC) refers to net income excluding interest expense and amortization of intangible assets from acquisitions, net of tax beneﬁt, divided by the average of beginning and ending invested capital. We believe that ROTC assists investors in understanding our ability to generate returns from our capital. • Free cash ﬂow (FCF) refers to cash ﬂow provided by operating activities, less payments for property, plant and equipment, software and other deferred charges, plus proceeds from sales of property, plant and equipment, plus (minus) net proceeds from insurance and sales (purchases) of investments. Free cash ﬂow is also adjusted for, where applicable, certain acquisition-related transaction costs. We believe that free cash ﬂow assists investors by showing the amount of cash we have available for debt reductions, dividends, share repurchases, and acquisitions. • Free cash ﬂow conversion refers to free cash ﬂow divided by net income. This document has been furnished (not ﬁled) on Form 8-K with the SEC and may be found on our website at www.investors.averydennison.com. February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 3

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Strong results in 2022; well-positioned for continued EPS growth in 2023 Sales up 13% ex. currency (non-GAAP), driven by pricing, Intelligent Labels volume and acquisitions Adj. EPS (non-GAAP) up 3%, up ~40% vs. 2019 ● Adj. EPS ex. currency (non-GAAP) up 11% Intelligent Labels achieved sales of $0.8 bil.; targeting $1 bil. in 2023 Delivered strong results despite challenging environment ● Unprecedented level of inﬂation; signiﬁcant currency headwinds ● COVID-19 negatively impacted demand in China ● Ceased shipment of products to Russia in Q2 Signiﬁcant inventory destocking drove volume decline in Q4 Expect adj. EPS of $9.15 to $9.55 in 2023 ● Destocking continues in Q1; targeting H2 adj. EPS annual run-rate >$10 ● Implementing recession scenario plan actions ● Free cash ﬂow proﬁle remains strong; targeting ~100% FCF conversion (non-GAAP) in 2023 Remain well-positioned for continued GDP+ growth and top-quartile ROTC; on track to achieve 2025 goals February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 4

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Full Year 2022 Review Reported EPS of $9.21, up 4% Adj. EPS of $9.15, up 3%, and 11% ex. currency Reported sales of $9.0 bil., up 8% ● Sales growth ex. currency (non-GAAP) of 13%; organic sales growth (non-GAAP) of 10% Reported operating income of $1.1 bil. ● Adj. EBITDA (non-GAAP) of $1.4 bil., up 4%, and 11% ex. currency ● Adj. EBITDA margin (non-GAAP) of 15.1%, down 50 bps Free cash ﬂow (non-GAAP) of $667 mil., down $130 mil. ● Average 2020-2022 FCF conversion of ~100% Maintained strong balance sheet, while continuing to deploy capital in disciplined manner ● Year-end net debt to adj. EBITDA (non-GAAP) ratio of 2.2 ● Deployed $618 mil. for buybacks and a growing dividend and $40 mil. for M&A Continuing progress toward long-term goals in 2023 ● Reported sales growth of 0% to 4%; organic sales growth of 1% to 5% ● Reported EPS of $8.85 to $9.25; adj. EPS of $9.15 to $9.55 February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 5

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$1B Intelligent Labels $0.8B 2022 Sales by End Market ~20% Apparel Org. Sales $0.8B Other $0.25B Pipeline by End Market ● Industry-leading position; 50%+ UHF RFID share ● Targeting 20%+ organic growth in coming years Apparel Food ● Clear innovation leader Industrial ● Investing in capacity and market development Logistics Solutions enabling omnichannel retail, more efﬁcient supply Beauty chains, enhanced consumer experience and less waste February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 6 6 # of Engagements End Market

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Combined LGM and IHM into Materials Group; renamed RBIS Materials Group Solutions Group (1) (1) $6.5 bil. $2.5 bil. (f ormer LGM and IHM) (former RBIS) Pressure-sensitive materials ● RFID solutions ● Label materials (LPM)● Branded tag and embellishment solutions ● Graphic and reﬂective materials● Data management and identiﬁcation solutions (2) ● Functional materials (e.g. tapes)● Pricing and productivity solutions (1) FY 2022 Net Sales (2) Previously part of IHM February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 7 Former segment names: Label and Graphic Materials (LGM), Industrial and Healthcare Materials (IHM) and Retail Branding and Information Solutions (RBIS)

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Full Year 2022 Sales Growth and Operating Margin Comparison Full Year Sales Growth Reported Ex. Currency Organic Materials Group4.6%11.0%11.2% Solutions Group15.6%19.1%5.0% Total Company7.5%13.1%9.5% Reported Adj. EBITDA Margin Operating Margin FY22 FY21 FY22 FY21 Materials Group13.2%14.2% 15.1%16.1% Solutions Group11.9%11.7% 18.3%18.0% Total Company11.9%12.6% 15.1%15.6% February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 8

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Delivering on objectives to drive GDP+ growth and top-quartile ROTC 2021–2025 2021-2022 TARGETS RESULTS 15.8% (1) Sales Growth Ex. Currency 5%+ 2-YR CAGR 16%+ 15.1% Adjusted EBITDA Margin in 2025 in 2022 13.5% (1) Adjusted EPS Growth 10% 2-YR CAGR 17.4% ROTC (Non-GAAP) 18%+ in 2022 (1) Reﬂects ﬁve-year compound annual growth rates, with 2020 as the base period Note: 2021-2025 targets reﬂected a higher-than-average growth expectation early in the cycle due to an anticipated economic rebound February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 9

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ESG: Balanced scorecard measuring progress for key stakeholders Employees Customers Communities Shareholders Employee Engagement Vitality Index Cum. GHG% Reduction Cumulative TSR (as of 1.25.23) AVY 193% \*as of \* Q3 2022 S&P 500 Women Manager+ Service Flexibility % Certiﬁed Paper 100% Leading in an environmentally and socially responsible manner, with clear 2030 goals Make a positive social impact Deliver innovations that Reduce the environmental impact by enhancing the livelihood of advance the circular economy in our operations and supply chain our people and communities February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 10

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Fourth Quarter 2022 Review Reported sales of $2.0 bil., down 7% ● Sales change ex. currency and organic sales change each down by 1% ● Signiﬁcant inventory destocking drove volume declines, partially offset by higher prices ○ Volumes down double digits in Apparel, Materials Europe and Materials North America Reported operating income of $186 mil. ● Adj. EBITDA of $261 mil., down 20%; adj. EBITDA margin of 12.9%, down 200 bps Reported EPS of $1.51 Adj. EPS of $1.65, down 23% and 14% ex. currency Implementing recession scenario plan actions Temporary sources of savings ● Volume-related actions (e.g. production shutdowns, OT/temp. labor/shift reductions) ● Belt tightening actions Structural sources of savings ● Restructuring actions; anticipate ~$45 mil. of savings, net of transition costs February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 11

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Strong Balance Sheet and Ample Liquidity YE 2022 Leverage Debt / Liquidity Considerations Total Debt Outstanding $3.1B ● Ample liquidity: increased revolver capacity to $1.2 bil. in January 2023 (through 2026) Cash and cash equivalents $0.2B ● Prioritizing near-term capex priorities while supporting long-term (1) Net Debt $2.9B value creation goals Adjusted EBITDA, trailing 4 qtrs $1.4B ● Strong free cash ﬂow proﬁle; delivering ~100% long-term FCF conversion Net Debt to Adj. EBITDA (non-GAAP) 2.2 Results vs. LT Capital Allocation Strategy Long-Term Debt Maturity Schedule % of Available Capital '21-'25 '21-'22 Target Actual Capex/restructuring 25%-30% 19% Dividends ~20% 15% ~50% Buyback/M&A: 67% Share Repurchases 18% Acquisitions and Equity Investments 49% (1) Totals may not sum due to rounding \* €500M debt converted to USD at 1.1x + $30M medium-term note Februar y 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 12

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Quarterly Sales Trend Analysis 4Q21 1Q22 2Q22 3Q22 4Q22 Reported Sales Change 9.7% 14.5% 11.7% 11.8% (7.2%) (1) Organic Sales Change 12.8% 12.7% 11.3% 15.5% (0.9%) Acquisitions/Divestitures 5.7% 5.3% 5.4% 3.5% 0.1% (1),(2) Sales Change Ex. Currency 18.5% 18.0% 16.7% 19.0% (0.8%) Extra Week Impact (8.5%) - - - - Currency Translation (0.3%) (3.4%) (5.0%) (7.2%) (6.4%) (2) Reported Sales Change 9.7% 14.5% 11.7% 11.8% (7.2%) (1) Non-GAAP (2) Totals may not sum due to rounding February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 13

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Fourth Quarter Sales Growth and Operating Margin Comparison Fourth Quarter Sales Growth Reported Ex. Currency Organic Materials Group(5.4%)2.2%2.2% Solutions Group(11.3%)(7.3%)(7.7%) Total Company(7.2%)(0.8%)(0.9%) Reported Adj. EBITDA Margin Operating Margin 4Q22 4Q21 4Q22 4Q21 Materials Group10.7%11.8% 12.8%14.3% Solutions Group8.8%14.7% 15.9%19.3% Total Company9.2%12.1% 12.9%14.9% February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 14

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Fourth Quarter 2022 Results AVY '22 Sales by Segment Materials Group Materials Group 72% Solutions Group Reported sales decreased 5% to $1.4 bil. Sales up 2% ex. currency and 2% organically ● Label materials up low-single digits on organic basis, with growth in both high value and base categories ○ Pricing more than offset low-double-digit volume decline, Materials Group 2022 Sales by Product driven by inventory destocking High Value Label materials ○ Organically, sales down low-to-mid single digits in North Categories Graphics & Reﬂectives America; sales up low-double digits in Western Europe and 35% Performance Tapes & Medical mid-single digits in emerging markets Other ● Graphics and Reﬂectives up low-single digits organically Materials Group ● Performance Tapes and Medical up low-double digits organically 2022 Sales by Geography U.S. & Canada Reported operating margin decreased 110 bps to 10.7% Emerging Western Europe Markets ● Adj. EBITDA of $184 mil., down 15% E. Europe & MENA 36% ● Adj. EBITDA margin of 12.8% Asia Paciﬁc Latin America February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 15 15 End Market Product Category

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Fourth Quarter 2022 Results AVY '22 Sales by Segment Solutions Group Materials Group 28% Solutions Group Reported sales decreased 11% to $585 mil. Sales down 7% ex. currency and 8% organically ● High value categories up mid-single digits organically ● Base solutions down high-teens organically as customers Solutions Group adjusted inventory levels 2022 Sales by Product ● Enterprise-wide Intelligent Labels sales for the full year up 15% Base Solutions High Value organically Categories Intelligent Labels 53% Vestcom Reported operating margin decreased 590 bps to 8.8% Ext. Embellishments ● Adj. EBITDA of $93 mil., down 27% ● Adj. EBITDA margin of 15.9% Solutions Group 2022 Sales by Geography U.S. & Canada Europe Asia Paciﬁc Latin America February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 16 16 Est. End Market Product Category

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Quarterly Sales Trend Analysis (cont.) Organic Sales Change 4Q21 1Q22 2Q22 3Q22 4Q22 Materials Group 11% 10% 14% 19% 2% Solutions Group 20% 20% 5% 7% (8%) Total Company 13% 13% 11% 16% (1%) Total Company 19% 18% 17% 19% (1%) Sales Change Ex. Currency February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 17

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2023 EPS Guidance Adj. EPS Reported EPS $8.85 – $9.25 ~40% adj. EPS growth 2019-2022 Add back: est. restructuring costs and other items ~$0.30 Adjusted EPS (non-GAAP) $9.15 – $9.55 Contributing Factors ● Reported sales growth of 0% to 4%; ~1% currency headwind ○ Organic sales growth of 1% to 5% ○ Destocking continues in ﬁrst quarter Net Sales ($ billion) ● Incremental savings of ~$45 mil. from restructuring actions, net of transition costs ● Continuing to invest in key strategic platforms, particularly Intelligent Labels ○ Incremental opex investment of ~$25 mil. ○ Fixed and IT capital spend of ~$350 mil. ● $0.25 headwind from non-operational items (tax, currency, interest, net of share count) ● Targeting FCF conversion of ~100% February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 18

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Appendix A: End Market Exposure Supplemental Segment Results February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 19

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Broad exposure to diverse end markets (1) (1) Sales by End Market Category Sales by Geographic End Market (2) (2) Staples Other Other Food Industrial/ ~60% LATAM Dur U.S abl . e S. Asia 27% U.S. HPC Total ~40% China Staples E. Europe Apparel ~80% Beverage & MENA Western Discretionary Pharma Europe Western Oth. Non- Staples ~20% 22% Europe Logistics Durable ~30% Healthcare (1) FY22 sales (2) Includes Australia, Canada, Japan, New Zealand, and South Africa Note: Ceased shipment of all products for the Russian market (~1% of total company revenue in 2021) February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 20

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Supplemental 2022 Segment Results Rptd. Sales Ex. Curr. Org. Sales Operating Oper. Adj. Oper. Adj. EBITDA Q4 2022 Net Sales Change Change Change Income Margin Margin Margin Former LGM $1,251 (6.0%) 1.5% 1.5% $135 10.8% 10.5% 12.7% Former IHM $190 (1.3%) 6.7% 6.7% $19 9.8% 9.7% 13.1% Materials Group $1,441 (5.4%) 2.2% 2.2% $154 10.7% 10.4% 12.8% (1) Solutions Group $585 (11.3%) (7.3%) (7.7%) $52 8.8% 9.1% 15.9% Rptd. Sales Ex. Curr. Org. Sales Operating Oper. Adj. Oper. Adj. EBITDA FY 2022 Net Sales Change Change Change Income Margin Margin Margin Former LGM $5,726 5.4% 11.9% 12.1% $784 13.7% 13.5% 15.4% Former IHM $769 (0.9%) 4.1% 4.9% $75 9.7% 9.8% 13.2% Materials Group $6,495 4.6% 11.0% 11.2% $859 13.2% 13.0% 15.1% (1) Solutions Group $2,544 15.6% 19.1% 5.0% $302 11.9% 12.2% 18.3% (1) Renamed the former RBIS segment "Solutions Group" February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 21

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Historical Trends - New Reporting Segments February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 ﬁnancial review and analysis 22

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Historical Trends - New Reporting Segments Continued February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 23

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Appendix B: Reconciliation of Financial Measures from GAAP to Non-GAAP February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 24

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Organic Sales Change – Avery Dennison (1) Totals may not sum due to rounding February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 25

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Organic Sales Change by Segment (1) Totals may not sum due to rounding February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 26

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Adjusted Operating Margin and EBITDA – Avery Dennison February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 27

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Adjusted Operating Margin and EBITDA – Materials Group February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 28

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Adjusted Operating Margin and EBITDA – Solutions Group February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 29

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Adjusted Net Income The adjusted tax rate was 24.7%, 25%, 24.1%, 24.6%, and 25% for 2022, 2021, 2020, 2019, and 2018, respectively. (1) Includes restructuring and related charges, transaction and related costs, gain/loss on venture investments, gain/loss on sale of assets, gain on sale of product line, outcomes of legal proceedings, Argentine peso remeasurement transition loss, reversal of acquisition related contingent consideration, and other items. (2) Tax benefits from the deduction of the U.S. pension contributions on our 2017 U.S. income tax return. (3) In the fourth quarter of 2018, we finalized our provisional amounts as defined under SEC Staff Accounting Bulletin No. 118 related to the TCJA. February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 30

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Adjusted EPS The adjusted tax rate was 24.7%, 25%, 24.1%, 24.6%, and 25% for 2022, 2021, 2020, 2019, and 2018, respectively. (1) Includes restructuring and related charges, transaction and related costs, gain/loss on venture investments, gain/loss on sale of assets, gain on sale of product line, outcomes of legal proceedings, Argentine peso remeasurement transition loss, reversal of acquisition related contingent consideration, and other items. (2) In the fourth quarter of 2018, we finalized our provisional amounts as defined under SEC Staff Accounting Bulletin No. 118 related to the TCJA. February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 31

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Free Cash Flow February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 32

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Return on Total Capital (ROTC) February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 33

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Net Debt to Adjusted EBITDA February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 34

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Adjusted EBITDA and EPS ex. currency February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 35

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February 2, 2023 Preliminary & unaudited, Q4 & FY 2022 financial review and analysis 36© 2023 Avery Dennison Corporation. All rights reserved. Avery Dennison and all other Avery Dennison brands, product names and codes are trademarks of Avery Dennison Corporation. All other brands or product names are trademarks of® their respective owners. Fortune 500 is a trademark of Time, Inc. Branding and other information on any samples depicted is fictitious. Any resemblance to actual names is purely coincidental.