Business Wire | Feb 3, 2021 06:45AM EST

Avery Dennison Announces Fourth Quarter and Full Year 2020 Results

Feb. 03, 2021

GLENDALE, Calif.--(BUSINESS WIRE)--Feb. 03, 2021--Avery Dennison Corporation (NYSE:AVY) today announced preliminary, unaudited results for its fourth quarter and year ended January 2, 2021 and provided an update related to the impact of the COVID-19 pandemic on the company. Non-GAAP financial measures referenced in this document are reconciled to GAAP in the attached tables. Unless otherwise indicated, comparisons are to the same period in the prior year.

"We delivered another year of strong earnings growth in 2020," said Mitch Butier, Chairman, President and CEO. "In the face of an unprecedented series of crises, our team demonstrated remarkable preparedness and incredible agility in ensuring the health and welfare of our employees, delivering for our customers, supporting our communities, and minimizing the impact of the recession for our shareholders.

"We were able to protect, even expand, margins, despite pandemic-related market declines particularly in the second quarter," added Butier. "Underlying label demand in LGM, our largest business, remained strong throughout the downturn, while volume trends improved sequentially in RBIS and IHM in the second half. RFID grew significantly due to continued strong organic growth and the acquisition of Smartrac.

"As we enter 2021, we remain confident in our ability to continue to make progress toward our long-term goals, including consistent delivery of GDP+ growth and top-quartile return on capital," added Butier.

"We continue to prove our resilience across business cycles," said Butier. "I want to thank our entire team for their ongoing efforts to keep one another safe while continuing to deliver for all our stakeholders during this challenging period."

COVID-19 Update

The safety and well-being of employees has been and will continue to be the company's top priority during this global health crisis. The company has taken steps to both ensure employee safety, as well as help mitigate the financial impact to employees resulting from mandated facility closures and necessary layoffs in early 2020. In addition, the company recently provided one-time payments to frontline workers to express gratitude for their effort and dedication throughout this difficult time.

Additionally, the company has increased community engagement during the crisis, including electing to make a $10 million incremental contribution for charitable causes in the fourth quarter.

Throughout the pandemic, the company has continued to work closely with customers to continue to deliver industry-leading products and services. Operationally, all manufacturing sites remained open during the second half of the year. Throughout the health crisis, disruptions to the company's supply chain have been negligible.

Balance Sheet, Liquidity, and Capital Deployment

The company's balance sheet remains strong, with ample liquidity. Net debt to adjusted EBITDA (non-GAAP) was 1.7 as of the end of the fourth quarter, below our long-term target of 2.3 to 2.6.

The company's long-term priorities for capital allocation support its primary objectives of delivering faster growth in high value categories alongside profitable growth of its base businesses. These priorities are unchanged in the current environment.

The company continues to protect its investments in high value categories, particularly RFID, and increased its pace of capital spending in the fourth quarter compared to previous expectations. Total capital spending for the year was $219 million.

The company closed two strategic acquisitions during the year, ACPO in the fourth quarter for $88 million and Smartrac in the first quarter for $255 million.

Additionally, for the fourth quarter and full year 2020, the company repurchased 0.4 and 0.8 million shares, respectively, at an aggregate cost of $52 million and $104 million, respectively. Net of dilution from long-term incentive awards, the company's share count at the end of the year was down by 0.9 million compared to the same time last year. In 2020, the company returned $301 million in cash to shareholders through a combination of share repurchases and dividends.

Fourth Quarter 2020 Results

Net sales were $1.99 billion, up 12.3%. The extra week in 2020 increased sales 4.9%. Sales were up 5.2% ex. currency, and up 3.2% on an organic basis.

Reported operating margin increased 350 basis points to 13.7%. Adjusted EBITDA margin increased 180 basis points to 16.3%, while adjusted operating margin increased 160 basis points to 13.5%.

Reported net income was $2.28 per share, up 19% and adjusted net income was $2.27 per share, up 31%, both of which were above the company's expectations.

Year-to-date free cash flow was $548 million, up 6.9% compared to last year.

Fourth Quarter 2020 Results by Segment

Label and Graphic Materials

* Reported sales increased 10.1%. Sales were up 3.6% on an organic basis. Label and Packaging Materials sales were up a mid-single digit from prior year on an organic basis. Sales declined by a mid-single digit organically in the combined Graphics and Reflective Solutions businesses. On an organic basis, sales were up a mid-single digit in North America and emerging markets, and roughly flat in Western Europe. * Reported operating margin increased 390 basis points to 15.9%, as the benefits of productivity, favorable volume/mix, lower restructuring charges, as well as raw material deflation, net of pricing more than offset higher employee-related costs. Adjusted operating margin increased 210 basis points to 15.4%.

Retail Branding and Information Solutions

* Reported sales increased 19.0%. Sales were up 11.6% ex. currency, and up 3.1% on an organic basis, as strong organic growth in high value categories was partially offset by a low-to-mid-single digit decline in the base business, driven by overall lower apparel demand. Sales ex. currency growth also reflected contribution from the Smartrac acquisition. Enterprise-wide sales of RFID products were up approximately 55% ex. currency with the benefit of the Smartrac acquisition, and up approximately 21% organically, driven by new programs and recovery in the value segment of the apparel market. * Reported operating margin increased 380 basis points to 15.3%, as the benefits of productivity, favorable volume, and lower restructuring charges more than offset higher employee-related costs. Adjusted operating margin increased 210 basis points to 15.7%.

Industrial and Healthcare Materials

* Reported sales increased 10.8%. On an organic basis, sales increased 0.7%, reflecting a high-single digit increase in industrial categories, and a mid-single digit decline in healthcare categories. * Reported operating margin increased 520 basis points to 12.4%, as the benefits of lower restructuring charges, favorable volume/mix, and productivity more than offset the impact of higher employee-related costs. Adjusted operating margin increased 210 basis points to 12.3%.

Other

Income Taxes

The company's reported effective tax rate was 24.6% for the fourth quarter and 24.1% for the full year. The company's adjusted (non-GAAP) tax rate was 24.1% for the fourth quarter and full year.

The company's 2021 adjusted tax rate is expected to be in the mid-twenty percent range, based on current tax regulations.

Cost Reduction Actions

In the fourth quarter and full year 2020, the company realized approximately $18 million and $65 million, respectively, in pre-tax savings from restructuring, net of transition costs, and incurred pre-tax restructuring charges of approximately $3 million and $55 million, respectively, the vast majority of which represents cash charges. In addition, the company delivered approximately $135 million in net temporary savings in 2020, the majority of which are expected to become a headwind as markets continue to recover.

Outlook

In its supplemental presentation materials, "Fourth Quarter and Full Year 2020 Financial Review and Analysis," the company provides a list of factors that it believes will contribute to its 2021 financial results. Based on the factors listed and other assumptions, the company expects 2021 reported earnings per share of $7.50 to $7.90.

Excluding an estimated $0.15 per share impact of restructuring charges and other items, the company expects 2021 adjusted earnings per share of $7.65 to $8.05.

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 2020 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 (NYSE: AVY) is a global materials science company specializing in the design and manufacture of a wide variety of labeling and functional materials. The company's products, which are used in nearly every major industry, include pressure-sensitive materials for labels and graphic applications; tapes and other bonding solutions for industrial, medical, and retail applications; tags, labels and embellishments for apparel; and radio frequency identification (RFID) solutions serving retail apparel and other markets. Headquartered in Glendale, California, the company employs more than 30,000 employees in more than 50 countries. Reported sales in 2020 were $7.0 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 our business from global economic conditions, political uncertainty, changes in environmental standards and governmental regulations, including as a result of the coronavirus/COVID-19 pandemic; (ii) competitors' actions, including pricing, expansion in key markets, and product offerings; (iii) 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; and (iv) 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 coronavirus/COVID-19 pandemic; fluctuations in demand affecting sales to customers; worldwide and local economic and market conditions; changes in political conditions; fluctuations in foreign currency exchange rates and other risks associated with foreign operations, including in emerging markets; changes in our markets due to competitive conditions, technological developments, laws and regulations, and customer preferences; fluctuations in the cost and availability of raw materials and energy; changes in governmental laws and regulations; the impact of competitive products and pricing; the financial condition and inventory strategies of customers; our ability to generate sustained productivity improvement; our ability to achieve and sustain targeted cost reductions; loss of significant contracts or customers; collection of receivables from customers; selling prices; business mix shift; execution and integration of acquisitions; 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; amounts of future dividends and share repurchases; customer and supplier concentrations or consolidations; fluctuations in interest and 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; successful implementation of new manufacturing technologies and installation of manufacturing equipment; disruptions in information technology systems, including cyber-attacks or other intrusions to network security; successful installation of new or upgraded information technology systems; data security breaches; volatility of financial markets; impairment of capitalized assets, including goodwill and other intangibles; credit risks; our ability to obtain adequate financing arrangements and maintain access to capital; the realization of deferred tax assets; fluctuations in interest rates; compliance with our debt covenants; fluctuations in pension, insurance, and employee benefit costs; goodwill impairment; the impact of legal and regulatory proceedings, including with respect to environmental, health and safety, anti-corruption and trade compliance; protection and infringement of intellectual property; the impact of epidemiological events on the economy and our customers and suppliers; acts of war, terrorism, and natural disasters; and other factors.

For a more detailed discussion of the more significant of these factors, see "Risk Factors" and "Management's Discussion and Analysis of Results of Operations and Financial Condition" in our 2019 Form 10-K, filed with the Securities and Exchange Commission on February 26, 2020, 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

Fourth Quarter Financial Summary - Preliminary, unaudited(In millions, except % and per share amounts) (14 (13 weeks) weeks) 4Q 4Q % Sales Change vs. P/Y 2020 2019 Reported Ex. Organic Currency (a) (b)Net sales, bysegment:Label and $1,294.7 $1,176.2 10.1% 3.6% 3.6%GraphicMaterialsRetailBranding and 508.0 426.9 19.0% 11.6% 3.1%InformationSolutionsIndustrialand 188.2 169.8 10.8% 0.7% 0.7%HealthcareMaterialsTotal net $1,990.9 $1,772.9 12.3% 5.2% 3.2%sales As Reported (GAAP) Adjusted Non-GAAP (c) (14 (13 (14 (13 weeks) weeks) weeks) weeks) 4Q 4Q % % of Sales 4Q 4Q % % of Sales 2020 2019 Change 2020 2019 2020 2019 Change 2020 2019

Operatingincome (loss)/ operatingmarginsbeforeinterest,othernon-operatingexpense(income), andtaxes, bysegment:Label and $205.7 $140.9 15.9% 12.0% $199.6 $156.0 15.4% 13.3%GraphicMaterialsRetailBranding and 77.5 49.1 15.3% 11.5% 79.6 58.1 15.7% 13.6%InformationSolutionsIndustrialand 23.3 12.2 12.4% 7.2% 23.1 17.4 12.3% 10.2%HealthcareMaterialsCorporate (33.5) (22.1) (33.0) (19.9)expenseTotaloperatingincome /operatingmarginsbefore $273.0 $180.1 52% 13.7% 10.2% $269.3 $211.6 27% 13.5% 11.9%interest,othernon-operatingexpense(income), andtaxes Interest $15.6 $17.8 $15.6 $17.8expense Othernon-operating $2.1 ($3.0) $1.6 ($0.2)expense(income), net(d) Income before $255.3 $165.3 54% 12.8% 9.3% $252.1 $194.0 30% 12.7% 10.9%taxes Provision for(benefit $62.9 $2.2 $60.7 $46.9from) incometaxes Equity methodinvestment ($0.9) ($0.6) ($0.9) ($0.6)(losses)gains Net income $191.5 $162.5 18% 9.6% 9.2% $190.5 $146.5 30% 9.6% 8.3%

Net incomeper common $2.28 $1.92 19% $2.27 $1.73 31%share,assumingdilution Free Cash $205.8 $184.9Flow (e)See accompanying schedules A-4 to A-9 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, where applicable, an extra week in our fiscal year, currency adjustment for transitional reporting of highly inflationary economies and the reclassification of sales between segments. 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 product line exits, acquisitions and divestitures.(c)

Excludes impact of restructuring charges and other items. Corporate expense excludes impact of severance and related costs of $.5 and $2.2 in the fourth quarters of 2020 and 2019, respectively.(d)

As reported "Other non-operating expense (income), net" includes pension plan settlements and related charges, net of credits of $.5 and ($2.8) in the fourth quarters of 2020 and 2019, respectively.(e)

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, the cash contributions related to the termination of our U.S. pension plan. See accompanying schedules A-4 to A-9 for reconciliations from GAAP to non-GAAP financial measures. Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation, and, where applicable, an extra week in our fiscal year, currency adjustment for(a) transitional reporting of highly inflationary economies and the reclassification of sales between segments. 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 product line exits, acquisitions and divestitures.(c) Excludes impact of restructuring charges and other items. Corporate expense excludes impact of severance and related costs of $.5 and $2.2 in the fourth quarters of 2020 and 2019, respectively.(d) As reported "Other non-operating expense (income), net" includes pension plan settlements and related charges, net of credits of $.5 and ($2.8) in the fourth quarters of 2020 and 2019, respectively. Free cash flow refers to cash flow provided by operating activities, less payments for property, plant and equipment, software and other deferred(e) 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, the cash contributions related to the termination of our U.S. pension plan.Full Year Financial Summary - Preliminary, unaudited(in millions, except % and per share amounts)(53 weeks)(52 weeks)% Sales Change vs. P/Y2020

2019

ReportedEx. CurrencyOrganic(a)(b)Net sales, by segment:Label and Graphic Materials$4,715.1

$4,745.9

(0.6%)

(0.5%)

(0.5%)

Retail Branding and Information Solutions1,630.9

1,650.3

(1.2%)

(2.3%)

(9.5%)

Industrial and Healthcare Materials625.5

673.9

(7.2%)

(8.7%)

(8.7%)

Total net sales$6,971.5

$7,070.1

(1.4%)

(1.7%)

(3.4%)

As Reported (GAAP)Adjusted Non-GAAP (c)(53 weeks)(52 weeks)%% of Sales(53 weeks)(52 weeks)%% of Sales2020

2019

Change2020

2019

2020

2019

Change2020

2019

Operating income (loss) / operating margins before interest, other non-operating expense (income), and taxes, by segment:Label and Graphic Materials$688.8

$601.5

14.6%

12.7%

$711.0

$629.8

15.1%

13.3%

Retail Branding and Information Solutions144.7

196.6

8.9%

11.9%

167.4

206.5

10.3%

12.5%

Industrial and Healthcare Materials58.2

60.0

9.3%

8.9%

66.6

69.4

10.6%

10.3%

Corporate expense(82.5)

(87.6)

(82.2)

(82.0)

Total operating income / operating margins before interest, other non-operating expense (income), and taxes$809.2

$770.5

5%

11.6%

10.9%

$862.8

$823.7

5%

12.4%

11.7%

Interest expense$70.0

$75.8

$70.0

$75.8

Other non-operating expense (income), net (d)$1.9

$445.2

$1.4

$1.1

Income before taxes$737.3

$249.5

196%

10.6%

3.5%

$791.4

$746.8

6%

11.4%

10.6%

Provision for (benefit from) income taxes (e)$177.7

($56.7)

$190.7

$183.4

Equity method investment (losses) gains($3.7)

($2.6)

($3.7)

($2.6)

Net income$555.9

$303.6

83%

8.0%

4.3%

$597.0

$560.8

6%

8.6%

7.9%

Net income per common share, assuming dilution$6.61

$3.57

85%

$7.10

$6.60

8%

Free Cash Flow (f)$547.5

$512.3

Full Year Financial Summary - Preliminary, unaudited(in millions, except % and per share amounts) (53 (52 % Sales Change vs. P/Y weeks) weeks) 2020 2019 Reported Ex. Organic Currency (a) (b)Net sales, bysegment:Label and $4,715.1 $4,745.9 (0.6%) (0.5%) (0.5%)GraphicMaterialsRetailBranding and 1,630.9 1,650.3 (1.2%) (2.3%) (9.5%)InformationSolutionsIndustrialand 625.5 673.9 (7.2%) (8.7%) (8.7%)HealthcareMaterialsTotal net $6,971.5 $7,070.1 (1.4%) (1.7%) (3.4%)sales As Reported (GAAP) Adjusted Non-GAAP (c) (53 (52 % % of Sales (53 (52 % % of Sales weeks) weeks) weeks) weeks) 2020 2019 Change 2020 2019 2020 2019 Change 2020 2019

Operatingincome (loss)/ operatingmarginsbeforeinterest,othernon-operatingexpense(income), andtaxes, bysegment:Label and $688.8 $601.5 14.6% 12.7% $711.0 $629.8 15.1% 13.3%GraphicMaterialsRetailBranding and 144.7 196.6 8.9% 11.9% 167.4 206.5 10.3% 12.5%InformationSolutionsIndustrialand 58.2 60.0 9.3% 8.9% 66.6 69.4 10.6% 10.3%HealthcareMaterialsCorporate (82.5) (87.6) (82.2) (82.0)expenseTotaloperatingincome /operatingmarginsbefore $809.2 $770.5 5% 11.6% 10.9% $862.8 $823.7 5% 12.4% 11.7%interest,othernon-operatingexpense(income), andtaxes Interest $70.0 $75.8 $70.0 $75.8expense Othernon-operating $1.9 $445.2 $1.4 $1.1expense(income), net(d) Income before $737.3 $249.5 196% 10.6% 3.5% $791.4 $746.8 6% 11.4% 10.6%taxes Provision for(benefit $177.7 ($56.7) $190.7 $183.4from) incometaxes (e) Equity methodinvestment ($3.7) ($2.6) ($3.7) ($2.6)(losses)gains Net income $555.9 $303.6 83% 8.0% 4.3% $597.0 $560.8 6% 8.6% 7.9%

Net incomeper common $6.61 $3.57 85% $7.10 $6.60 8%share,assumingdilution Free Cash $547.5 $512.3Flow (f)See accompanying schedules A-4 to A-9 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, where applicable, an extra week in our fiscal year, currency adjustment for transitional reporting of highly inflationary economies and the reclassification of sales between segments. 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 product line exits, acquisitions and divestitures.(c)

Excludes impact of restructuring charges and other items. Corporate expense excludes impact of severance and related costs and legal settlement of $.3 and $5.6 in 2020 and 2019, respectively.(d)

As reported "Other non-operating expense (income), net" includes pension plan settlements and related charges, net of credits of $.5 and $444.1 in 2020 and 2019, respectively.(e)

As reported "Provision for (benefit from) income taxes" for 2019 includes then-estimated tax benefit of $178.9 related to the termination of our U.S. pension plan.(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, the cash contributions related to the termination of our U.S. pension plan. See accompanying schedules A-4 to A-9 for reconciliations from GAAP to non-GAAP financial measures. Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation, and, where applicable, an extra week in our fiscal year, currency adjustment for(a) transitional reporting of highly inflationary economies and the reclassification of sales between segments. 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 product line exits, acquisitions and divestitures.(c) Excludes impact of restructuring charges and other items. Corporate expense excludes impact of severance and related costs and legal settlement of $.3 and $5.6 in 2020 and 2019, respectively.(d) As reported "Other non-operating expense (income), net" includes pension plan settlements and related charges, net of credits of $.5 and $444.1 in 2020 and 2019, respectively.(e) As reported "Provision for (benefit from) income taxes" for 2019 includes then-estimated tax benefit of $178.9 related to the termination of our U.S. pension plan. Free cash flow refers to cash flow provided by operating activities, less payments for property, plant and equipment, software and other deferred(f) 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, the cash contributions related to the termination of our U.S. pension plan.A-1

AVERY DENNISON CORPORATIONPRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME(In millions, except per share amounts)(UNAUDITED)Three Months EndedTwelve Months EndedJan. 2, 2021Dec. 28, 2019Jan. 2, 2021Dec. 28, 2019(14 weeks)(13 weeks)(53 weeks)(52 weeks)Net sales$1,990.9

$1,772.9

$6,971.5

$7,070.1

Cost of products sold1,419.8

1,288.2

5,048.2

5,166.0

Gross profit571.1

484.7

1,923.3

1,904.1

Marketing, general and administrative expense301.8

273.1

1,060.5

1,080.4

Other expense (income), net(1)(3.7)

31.5

53.6

53.2

Interest expense15.6

17.8

70.0

75.8

Other non-operating expense (income), net(2)2.1

(3.0)

1.9

445.2

Income before taxes255.3

165.3

737.3

249.5

Provision for (benefit from) income taxes(3)62.9

2.2

177.7

(56.7)

Equity method investment (losses) gains(0.9)

(0.6)

(3.7)

(2.6)

Net income$191.5

$162.5

$555.9

$303.6

Per share amounts:Net income per common share, assuming dilution$2.28

$1.92

$6.61

$3.57

Weighted average number of common shares outstanding, assuming dilution84.1

84.5

84.1

85.0

A-1

AVERY DENNISON CORPORATIONPRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME(In millions, except per share amounts) (UNAUDITED) Three Months Ended Twelve Months Ended Jan. 2, Dec. Jan. 2, Dec. 2021 28, 2021 28, 2019 2019 (14 (13 (53 (52 weeks) weeks) weeks) weeks) Net sales $ 1,990.9 $ 1,772.9 $ 6,971.5 $ 7,070.1

Cost of products sold 1,419.8 1,288.2 5,048.2 5,166.0

Gross profit 571.1 484.7 1,923.3 1,904.1

Marketing, general and 301.8 273.1 1,060.5 1,080.4administrative expenseOther expense (income), net^(1) (3.7) 31.5 53.6 53.2

Interest expense 15.6 17.8 70.0 75.8

Other non-operating expense 2.1 (3.0) 1.9 445.2(income), net^(2)Income before taxes 255.3 165.3 737.3 249.5

Provision for (benefit from) income 62.9 2.2 177.7 (56.7)taxes^(3)Equity method investment (losses) (0.9) (0.6) (3.7) (2.6)gainsNet income $ 191.5 $ 162.5 $ 555.9 $ 303.6

Per share amounts:Net income per common share, $ 2.28 $ 1.92 $ 6.61 $ 3.57assuming dilution Weighted average number of common 84.1 84.5 84.1 85.0shares outstanding, assumingdilution(1)

"Other expense (income), net" for the fourth quarter of 2020 includes gain on investment of $6.9 and gain on sale of assets of $.5, partially offset by severance and related costs of $2.7 and transaction costs of $1."Other expense (income), net" for the fourth quarter of 2019 includes severance and related costs of $25.5, asset impairment charges of $3.4, and transaction costs of $2.6."Other expense (income), net" for fiscal year 2020 includes severance and related costs of $49.1, asset impairment charges of $6.2, and transaction and related costs of $4.2, partially offset by net gain on investments of $5.4 and gain on sale of assets of $.5."Other expense (income), net" for fiscal year 2019 includes severance and related costs of $45.3, asset impairment and lease cancellation charges of $5.1, legal settlement of $3.4, and transaction costs of $2.6, partially offset by gain on sales of assets of $3.2.(2)

"Other non-operating expense (income), net" includes pension plan settlements and related charges, net of credits of $.5 and ($2.8) in the fourth quarters of 2020 and 2019, respectively, and $.5 and $444.1 in fiscal years 2020 and 2019, respectively.(3)

"Provision for (benefit from) income taxes" for fiscal year 2019 includes then-estimated tax benefit of $178.9 related to the termination of our U.S. pension plan.^ "Other expense (income), net" for the fourth quarter of 2020 includes gain on(1) investment of $6.9 and gain on sale of assets of $.5, partially offset by severance and related costs of $2.7 and transaction costs of $1. "Other expense (income), net" for the fourth quarter of 2019 includes severance and related costs of $25.5, asset impairment charges of $3.4, and transaction costs of $2.6. "Other expense (income), net" for fiscal year 2020 includes severance and related costs of $49.1, asset impairment charges of $6.2, and transaction and related costs of $4.2, partially offset by net gain on investments of $5.4 and gain on sale of assets of $.5. "Other expense (income), net" for fiscal year 2019 includes severance and related costs of $45.3, asset impairment and lease cancellation charges of $5.1, legal settlement of $3.4, and transaction costs of $2.6, partially offset by gain on sales of assets of $3.2.^ "Other non-operating expense (income), net" includes pension plan settlements(2) and related charges, net of credits of $.5 and ($2.8) in the fourth quarters of 2020 and 2019, respectively, and $.5 and $444.1 in fiscal years 2020 and 2019, respectively.^ "Provision for (benefit from) income taxes" for fiscal year 2019 includes(3) then-estimated tax benefit of $178.9 related to the termination of our U.S. pension plan.A-2

AVERY DENNISON CORPORATIONPRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS(In millions)(UNAUDITED)ASSETSJan. 2, 2021

Dec. 28, 2019Current assets:Cash and cash equivalents$252.3

$253.7

Trade accounts receivable, net1,235.2

1,212.2

Inventories, net717.2

663.0

Other current assets211.5

211.7

Total current assets2,416.2

2,340.6

Property, plant and equipment, net1,343.7

1,210.7

Goodwill and other intangibles resulting from business acquisitions, net1,361.3

1,057.3

Deferred tax assets212.7

225.4

Other assets765.0

654.8

$6,098.9

$5,488.8

LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Short-term borrowings and current portion of long-term debt and finance leases$64.7

$440.2

Accounts payable1,050.9

1,066.1

Other current liabilities810.4

747.5

Total current liabilities1,926.0

2,253.8

Long-term debt and finance leases2,052.1

1,499.3

Other long-term liabilities620.9

531.7

Shareholders' equity:Common stock124.1

124.1

Capital in excess of par value862.1

874.0

Retained earnings3,349.3

2,979.1

Treasury stock at cost(2,501.0)

(2,425.1)

Accumulated other comprehensive loss(334.6)

(348.1)

Total shareholders' equity1,499.9

1,204.0

$6,098.9

$5,488.8

A-2

AVERY DENNISON CORPORATIONPRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS(In millions) (UNAUDITED) Jan. 2, Dec. 28,ASSETS 2021 2019

Current assets:Cash and cash equivalents $ 252.3 $ 253.7

Trade accounts receivable, net 1,235.2 1,212.2

Inventories, net 717.2 663.0

Other current assets 211.5 211.7

Total current assets 2,416.2 2,340.6

Property, plant and equipment, net 1,343.7 1,210.7

Goodwill and other intangibles resulting from 1,361.3 1,057.3business acquisitions, netDeferred tax assets 212.7 225.4

Other assets 765.0 654.8

$ 6,098.9 $ 5,488.8

LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:Short-term borrowings and current portion of $ 64.7 $ 440.2long-term debt and finance leasesAccounts payable 1,050.9 1,066.1

Other current liabilities 810.4 747.5

Total current liabilities 1,926.0 2,253.8

Long-term debt and finance leases 2,052.1 1,499.3

Other long-term liabilities 620.9 531.7

Shareholders' equity:Common stock 124.1 124.1

Capital in excess of par value 862.1 874.0

Retained earnings 3,349.3 2,979.1

Treasury stock at cost (2,501.0) (2,425.1)

Accumulated other comprehensive loss (334.6) (348.1)

Total shareholders' equity 1,499.9 1,204.0

$ 6,098.9 $ 5,488.8

A-3

AVERY DENNISON CORPORATIONPRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(UNAUDITED)Twelve Months EndedJan. 2, 2021Dec. 28, 2019(53 weeks)(52 weeks)Operating Activities:Net income$555.9

$303.6

Adjustments to reconcile net income to net cash provided by operating activities:Depreciation154.2

140.3

Amortization51.1

38.7

Provision for credit losses and sales returns64.0

58.7

Stock-based compensation24.0

34.5

Pension plan settlements and related charges0.5

444.1

Deferred taxes and other non-cash taxes9.3

(216.9

)

Other non-cash expense and loss (income and gain), net44.9

28.3

Changes in assets and liabilities and other adjustments(152.6

)

(84.8

)

Net cash provided by operating activities751.3

746.5

Investing Activities:Purchases of property, plant and equipment(201.4

)

(219.4

)

Purchases of software and other deferred charges(17.2

)

(37.8

)

Proceeds from sales of property, plant and equipment9.2

7.8

Proceeds from insurance and sales (purchases) of investments, net5.6

4.9

Payments for acquisitions, net of cash acquired, and investments in businesses(350.4

)

(6.5

)

Net cash used in investing activities(554.2

)

(251.0

)

Financing Activities:Net increase (decrease) in borrowings (maturities of three months or less)(110.4

)

(5.3

)

Additional borrowings under revolving credit facility500.0

--

Repayments of revolving credit facility(500.0

)

--

Additional long-term borrowings493.7

--

Repayments of long-term debt and finance leases(270.2

)

(18.6

)

Dividends paid(196.8

)

(189.7

)

Share repurchases(104.3

)

(237.7

)

Net (tax withholding) proceeds related to stock-based compensation(19.7

)

(17.4

)

Payments of contingent consideration--

(1.6

)

Net cash used in financing activities(207.7

)

(470.3

)

Effect of foreign currency translation on cash balances9.2

(3.5

)

Increase (decrease) in cash and cash equivalents(1.4

)

21.7

Cash and cash equivalents, beginning of year253.7

232.0

Cash and cash equivalents, end of year$252.3

$253.7

A-3

AVERY DENNISON CORPORATIONPRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions) (UNAUDITED) Twelve Months Ended Jan. 2, Dec. 28, 2021 2019 (53 weeks) (52 weeks) Operating Activities:Net income $ 555.9 $ 303.6

Adjustments to reconcile net income to net cashprovided by operating activities:Depreciation 154.2 140.3

Amortization 51.1 38.7

Provision for credit losses and sales returns 64.0 58.7

Stock-based compensation 24.0 34.5

Pension plan settlements and related charges 0.5 444.1

Deferred taxes and other non-cash taxes 9.3 (216.9 )

Other non-cash expense and loss (income and gain), 44.9 28.3 netChanges in assets and liabilities and other (152.6 ) (84.8 )adjustments^Net cash provided by operating activities 751.3 746.5

Investing Activities:Purchases of property, plant and equipment (201.4 ) (219.4 )

Purchases of software and other deferred charges (17.2 ) (37.8 )

Proceeds from sales of property, plant and equipment 9.2 7.8

Proceeds from insurance and sales (purchases) of 5.6 4.9 investments, netPayments for acquisitions, net of cash acquired, and (350.4 ) (6.5 )investments in businessesNet cash used in investing activities (554.2 ) (251.0 )

Financing Activities:Net increase (decrease) in borrowings (maturities of (110.4 ) (5.3 )three months or less)Additional borrowings under revolving credit 500.0 -- facilityRepayments of revolving credit facility (500.0 ) --

Additional long-term borrowings 493.7 --

Repayments of long-term debt and finance leases (270.2 ) (18.6 )

Dividends paid (196.8 ) (189.7 )

Share repurchases (104.3 ) (237.7 )

Net (tax withholding) proceeds related to (19.7 ) (17.4 )stock-based compensationPayments of contingent consideration -- (1.6 )

Net cash used in financing activities (207.7 ) (470.3 )

Effect of foreign currency translation on cash 9.2 (3.5 )balancesIncrease (decrease) in cash and cash equivalents (1.4 ) 21.7

Cash and cash equivalents, beginning of year 253.7 232.0

Cash and cash equivalents, end of year $ 252.3 $ 253.7

A-4

Reconciliation of Non-GAAP Financial Measures to GAAPWe 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 that are prepared in accordance with GAAP. Based upon feedback from investors and financial analysts, we believe that the supplemental non-GAAP financial measures we provide are useful to their assessment of our performance and operating trends, as well as liquidity.Our non-GAAP financial measures exclude the impact of certain events, activities or decisions. The accounting effects of these events, activities or decisions, which are included in the GAAP financial measures, may make it 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, legal settlements, 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 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 a single period and full year.We use the following non-GAAP financial measures in the accompanying news release and presentation:Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation, and, where applicable, an extra week in our fiscal year, currency adjustment for transitional reporting of highly inflationary economies, and the reclassification of sales between segments. 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 product line exits, acquisitions and 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 our U.S. pension plan termination, effects of certain discrete tax planning actions, impacts related to the enactment of the U.S. Tax Cuts and Jobs Act ("TCJA"), where applicable, 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 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, the cash contributions related to the termination of our U.S. pension plan. 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.The following 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.A-4

Reconciliation of Non-GAAP Financial Measures to GAAPWe report our financial results in conformity with accounting principlesgenerally accepted in the United States of America, or GAAP, and alsocommunicate with investors using certain non-GAAP financial measures. Thesenon-GAAP financial measures are not in accordance with, nor are they asubstitute for or superior to, the comparable GAAP financial measures. Thesenon-GAAP financial measures are intended to supplement the presentation of ourfinancial results that are prepared in accordance with GAAP. Based uponfeedback from investors and financial analysts, we believe that thesupplemental non-GAAP financial measures we provide are useful to theirassessment of our performance and operating trends, as well as liquidity.

Our non-GAAP financial measures exclude the impact of certain events,activities or decisions. The accounting effects of these events, activities ordecisions, which are included in the GAAP financial measures, may make itdifficult to assess our underlying performance in a single period. By excludingthe accounting effects, positive or negative, of certain items (e.g.,restructuring charges, legal settlements, certain effects of strategictransactions and related costs, losses from debt extinguishments, gains orlosses from curtailment or settlement of pension obligations, gains or losseson sales of certain assets, gains or losses on investments, and other items),we believe that we are providing meaningful supplemental information thatfacilitates an understanding of our core operating results and liquiditymeasures. While some of the items we exclude from GAAP financial measuresrecur, they tend to be disparate in amount, frequency, or timing.

We use these non-GAAP financial measures internally to evaluate trends in ourunderlying performance, as well as to facilitate comparison to the results ofcompetitors for a single period and full year.

We use the following non-GAAP financial measures in the accompanying newsrelease and presentation:

Sales change ex. currency refers to the increase or decrease in net sales,excluding the estimated impact of foreign currency translation, and, whereapplicable, an extra week in our fiscal year, currency adjustment fortransitional reporting of highly inflationary economies, and thereclassification of sales between segments. The estimated impact of foreigncurrency translation is calculated on a constant currency basis, with priorperiod results translated at current period average exchange rates to excludethe effect of currency fluctuations.

Organic sales change refers to sales change ex. currency, excluding theestimated impact of product line exits, acquisitions and divestitures.

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

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 andamortization.

Adjusted operating margin refers to adjusted operating income as a percentageof 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 excludecertain unusual or infrequent events that are expected to significantly impactthat rate, such as our U.S. pension plan termination, effects of certaindiscrete tax planning actions, impacts related to the enactment of the U.S. TaxCuts and Jobs Act ("TCJA"), where applicable, and other items.

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

Adjusted net income per common share, assuming dilution (adjusted EPS) refersto adjusted net income divided by weighted average number of common sharesoutstanding, assuming dilution.

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

Net debt to adjusted EBITDA ratio refers to total debt (including financeleases) less cash and cash equivalents, divided by adjusted EBITDA for the lasttwelve months.

We believe that the net debt to adjusted EBITDA ratio assists investors inassessing our leverage position.

Free cash flow refers to cash flow provided by operating activities, lesspayments for property, plant and equipment, software and other deferredcharges, plus proceeds from sales of property, plant and equipment, plus(minus) net proceeds from insurance and sales (purchases) of investments. Freecash flow is also adjusted for, where applicable, the cash contributionsrelated to the termination of our U.S. pension plan. We believe that free cashflow assists investors by showing the amount of cash we have available for debtreductions, dividends, share repurchases, and acquisitions.

The following reconciliations are provided in accordance with Regulations G andS-K and reconcile our non-GAAP financial measures with the most directlycomparable GAAP financial measures.A-5

AVERY DENNISON CORPORATIONPRELIMINARY RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES(In millions, except % and per share amounts)(UNAUDITED)Three Months EndedTwelve Months EndedJan. 2, 2021Dec. 28, 2019Jan. 2, 2021Dec. 28, 2019(14 weeks)(13 weeks)(53 weeks)(52 weeks)Reconciliation from GAAP to Non-GAAP operating margins:Net sales$

1,990.9

$

1,772.9

$

6,971.5

$

7,070.1

Income before taxes$

255.3

$

165.3

$

737.3

$

249.5

Income before taxes as a percentage of net sales12.8%

9.3%

10.6%

3.5%

Adjustments:Interest expense$

15.6

$

17.8

$

70.0

$

75.8

Other non-operating expense (income), net2.1

(3.0)

1.9

445.2

Operating income before interest expense, other non-operating expense (income), and taxes$

273.0

$

180.1

$

809.2

$

770.5

Operating margins13.7%

10.2%

11.6%

10.9%

Income before taxes$

255.3

$

165.3

$

737.3

$

249.5

Adjustments:Restructuring charges:Severance and related costs2.7

25.5

49.1

45.3

Asset impairment and lease cancellation charges--

3.4

6.2

5.1

Net gain on investments(6.9)

--

(5.4)

--

Transaction and related costs1.0

2.6

4.2

2.6

Legal settlement--

--

--

3.4

Gain on sales of assets(0.5)

--

(0.5)

(3.2)

Interest expense15.6

17.8

70.0

75.8

Other non-operating expense (income), net2.1

(3.0)

1.9

445.2

Adjusted operating income (non-GAAP)$

269.3

$

211.6

$

862.8

$

823.7

Adjusted operating margins (non-GAAP)13.5%

11.9%

12.4%

11.7%

Reconciliation from GAAP to Non-GAAP net income:As reported net income$

191.5

$

162.5

$

555.9

$

303.6

Adjustments:Restructuring charges and other items(1)(3.7)

31.5

53.6

53.2

Pension plan settlements and related charges0.5

(2.8)

0.5

444.1

Tax benefit from pension plan settlements and related charges--

0.8

--

(179.0)

Tax benefit from discrete foreign tax structuring and planning transactions--

(47.9)

--

(47.9)

Tax effect on restructuring charges and other items and impact of adjusted tax rate2.2

2.4

(13.0)

(13.2)

Adjusted net income (non-GAAP)$

190.5

$

146.5

$

597.0

$

560.8

A-5

AVERY DENNISON CORPORATIONPRELIMINARY RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES(In millions, except % and per share amounts)

(UNAUDITED)



Three Months Ended Twelve Months Ended

Jan. 2, Dec. Jan. 2, Dec. 2021 28, 2021 28, 2019 2019 (14 (13 (53 (52 weeks) weeks) weeks) weeks)

Reconciliation from GAAP to Non-GAAP operating margins:Net sales $ 1,990.9 $ 1,772.9 $ 6,971.5 $ 7,070.1

Income before taxes $ 255.3 $ 165.3 $ 737.3 $ 249.5

Income before taxes as a percentage 12.8% 9.3% 10.6% 3.5%of net salesAdjustments:

Interest expense $ 15.6 $ 17.8 $ 70.0 $ 75.8

Other non-operating expense 2.1 (3.0) 1.9 445.2(income), netOperating income before interest $ 273.0 $ 180.1 $ 809.2 $ 770.5expense, other non-operating expense(income), and taxesOperating margins 13.7% 10.2% 11.6% 10.9%





Income before taxes $ 255.3 $ 165.3 $ 737.3 $ 249.5

Adjustments:

Restructuring charges:

Severance and related costs 2.7 25.5 49.1 45.3

Asset impairment and lease -- 3.4 6.2 5.1cancellation chargesNet gain on investments (6.9) -- (5.4) --

Transaction and related costs 1.0 2.6 4.2 2.6

Legal settlement -- -- -- 3.4

Gain on sales of assets (0.5) -- (0.5) (3.2)

Interest expense 15.6 17.8 70.0 75.8

Other non-operating expense 2.1 (3.0) 1.9 445.2(income), netAdjusted operating income (non-GAAP) $ 269.3 $ 211.6 $ 862.8 $ 823.7

Adjusted operating margins 13.5% 11.9% 12.4% 11.7%(non-GAAP)

Reconciliation from GAAP to Non-GAAP net income:As reported net income $ 191.5 $ 162.5 $ 555.9 $ 303.6

Adjustments:

Restructuring charges and other (3.7) 31.5 53.6 53.2items^(1)Pension plan settlements and related 0.5 (2.8) 0.5 444.1chargesTax benefit from pension plan -- 0.8 -- (179.0)settlements and related chargesTax benefit from discrete foreign -- (47.9) -- (47.9)tax structuring and planningtransactionsTax effect on restructuring charges 2.2 2.4 (13.0) (13.2)and other items and impact ofadjusted tax rateAdjusted net income (non-GAAP) $ 190.5 $ 146.5 $ 597.0 $ 560.8

(1)

Includes pretax restructuring and related charges, transaction and related costs, legal settlement, net gain on investments, and gain on sales of assets.

Includes pretax restructuring and related charges, transaction and related(1) costs, legal settlement, net gain on investments, and gain on sales of assets.

A-5 (continued)

AVERY DENNISON CORPORATIONPRELIMINARY RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES(In millions, except % and per share amounts)(UNAUDITED)Three Months EndedTwelve Months EndedJan. 2, 2021Dec. 28, 2019Jan. 2, 2021Dec. 28, 2019(14 weeks)(13 weeks)(53 weeks)(52 weeks)Reconciliation from GAAP to Non-GAAP net income per common share:As reported net income per common share, assuming dilution$2.28

$1.92

$6.61

$3.57

Adjustments per common share, net of tax:Restructuring charges and other items(1)(0.05)

0.37

0.64

0.63

Pension plan settlements and related charges0.01

(0.02)

0.01

3.12

Tax benefit from discrete foreign tax structuring and planning transactions--

(0.57)

--

(0.56)

Tax effect on restructuring charges and other items and impact of adjusted tax rate0.03

0.03

(0.16)

(0.16)

Adjusted net income per common share, assuming dilution (non-GAAP)$2.27

$1.73

$7.10

$6.60

Weighted average number of common shares outstanding, assuming dilution84.1

84.5

84.1

85.0

Our adjusted tax rate was 24.1% for the three and twelve months ended Jan. 2, 2021, and 24.2% and 24.6% for the three and twelve months ended Dec. 28, 2019, respectively.(1) Includes pretax restructuring and related charges, transaction and related costs, legal settlement, net gain on investments, and gain on sales of assets.(UNAUDITED)Three Months EndedTwelve Months EndedJan. 2, 2021Dec. 28, 2019Jan. 2, 2021Dec. 28, 2019(14 weeks)(13 weeks)(53 weeks)(52 weeks)Reconciliation of free cash flow:Net cash provided by operating activities$309.5

$279.5

$751.3

$746.5

Purchases of property, plant and equipment(109.7)

(86.5)

(201.4)

(219.4)

Purchases of software and other deferred charges(3.4)

(10.4)

(17.2)

(37.8)

Proceeds from sales of property, plant and equipment9.0

0.1

9.2

7.8

Proceeds from insurance and sales (purchases) of investments, net0.4

1.4

5.6

4.9

Contributions for U.S. pension plan termination--

0.8

--

10.3

Free cash flow (non-GAAP)$205.8

$184.9

$547.5

$512.3

A-5(continued)

AVERY DENNISON CORPORATIONPRELIMINARY RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES(In millions, except % and per share amounts) (UNAUDITED) Three Months Ended Twelve Months Ended Jan. 2, Dec. 28, Jan. 2, Dec. 28, 2021 2019 2021 2019 (14 (13 (53 (52 weeks) weeks) weeks) weeks) Reconciliation from GAAP toNon-GAAP net income per commonshare:As reported net income per 2.28 1.92 6.61 3.57common share, assuming $ $ $ $dilutionAdjustments per common share,net of tax:Restructuring charges and (0.05) 0.37 0.64 0.63other items^(1)Pension plan settlements and 0.01 (0.02) 0.01 3.12related chargesTax benefit from discrete -- (0.57) -- (0.56)foreign tax structuring andplanning transactionsTax effect on restructuring 0.03 0.03 (0.16) (0.16)charges and other items andimpact of adjusted tax rate Adjusted net income per common 2.27 1.73 7.10 6.60share, assuming dilution $ $ $ $(non-GAAP)Weighted average number of 84.1 84.5 84.1 85.0common shares outstanding,assuming dilution Our adjusted tax rate was 24.1% for the three and twelve months ended Jan. 2,2021, and 24.2% and 24.6% for the three and twelve months ended Dec. 28, 2019,respectively. ^(1) Includes pretax restructuring and related charges, transaction and relatedcosts, legal settlement, net gain on investments, and gain on sales of assets. (UNAUDITED) Three Months Ended Twelve Months Ended Jan. 2, Dec. 28, Jan. 2, Dec. 28, 2021 2019 2021 2019 (14 (13 (53 (52 weeks) weeks) weeks) weeks) Reconciliation of free cash flow: Net cash provided by operating $ 309.5 $ 279.5 $ 751.3 $ 746.5activitiesPurchases of property, plant (109.7) (86.5) (201.4) (219.4)and equipmentPurchases of software and (3.4) (10.4) (17.2) (37.8)other deferred chargesProceeds from sales of 9.0 0.1 9.2 7.8property, plant and equipmentProceeds from insurance and 0.4 1.4 5.6 4.9sales (purchases) ofinvestments, netContributions for U.S. pension -- 0.8 -- 10.3plan terminationFree cash flow (non-GAAP) $ 205.8 $ 184.9 $ 547.5 $ 512.3

A-6

AVERY DENNISON CORPORATIONPRELIMINARY SUPPLEMENTARY INFORMATION(In millions, except %)(UNAUDITED)Fourth Quarter EndedNET SALESOPERATING INCOME (LOSS)OPERATING MARGINS2020

2019

2020

2019

2020

2019

(14 weeks)(13 weeks)(14 weeks)(13 weeks)(14 weeks)(13 weeks)Label and Graphic Materials$

1,294.7

$

1,176.2

$

205.7

$

140.9

15.9

%

12.0

%

Retail Branding and Information Solutions508.0

426.9

77.5

49.1

15.3

%

11.5

%

Industrial and Healthcare Materials188.2

169.8

23.3

12.2

12.4

%

7.2

%

Corporate ExpenseN/A

N/A

(33.5

)

(22.1

)

N/A

N/A

TOTAL FROM OPERATIONS$

1,990.9

$

1,772.9

$

273.0

$

180.1

13.7

%

10.2

%

RECONCILIATION FROM GAAP TO NON-GAAP SUPPLEMENTARY INFORMATIONFourth Quarter EndedOPERATING INCOMEOPERATING MARGINS2020

2019

2020

2019

Label and Graphic MaterialsOperating income and margins, as reported$

205.7

$

140.9

15.9

%

12.0

%

Adjustments:Restructuring charges:

Severance and related costs

0.3

15.1

--

1.3

%

Transaction costs

1.0

--

0.1

%

--

Gain on investment

(6.9

)

--

(0.5

%)

--

Gain on sale of assets

(0.5

)

--

(0.1

%)

--

Adjusted operating income and margins (non-GAAP)

$

199.6

$

156.0

15.4

%

13.3

%

Retail Branding and Information SolutionsOperating income and margins, as reported$

77.5

$

49.1

15.3

%

11.5

%

Adjustments:Restructuring charges:Severance and related costs2.1

6.3

0.4

%

1.5

%

Asset impairment charges--

0.1

--

--

Transaction costs--

2.6

--

0.6

%

Adjusted operating income and margins (non-GAAP)$

79.6

$

58.1

15.7

%

13.6

%

Industrial and Healthcare MaterialsOperating income and margins, as reported$

23.3

$

12.2

12.4

%

7.2

%

Adjustments:Restructuring charges:Severance and related costs(0.2

)

1.9

(0.1

%)

1.1

%

Asset impairment charges--

3.3

--

1.9

%

Adjusted operating income and margins (non-GAAP)$

23.1

$

17.4

12.3

%

10.2

%

A-6

AVERY DENNISON CORPORATIONPRELIMINARY SUPPLEMENTARY INFORMATION(In millions, except %)(UNAUDITED) Fourth Quarter Ended NET SALES OPERATING INCOME OPERATING (LOSS) MARGINS 2020 2019 2020 2019 2020 2019

(14 (13 (14 (13 (14 (13 weeks) weeks) weeks) weeks) weeks) weeks) Label and $ 1,294.7 $ 1,176.2 $ 205.7 $ 140.9 15.9 % 12.0 %GraphicMaterialsRetailBranding and 508.0 426.9 77.5 49.1 15.3 % 11.5 %InformationSolutionsIndustrialand 188.2 169.8 23.3 12.2 12.4 % 7.2 %HealthcareMaterialsCorporate N/A N/A (33.5 ) (22.1 ) N/A N/A ExpenseTOTAL FROM $ 1,990.9 $ 1,772.9 $ 273.0 $ 180.1 13.7 % 10.2 %OPERATIONS RECONCILIATION FROM GAAP TO NON-GAAP SUPPLEMENTARY INFORMATION Fourth Quarter Ended OPERATING INCOME OPERATING MARGINS 2020 2019 2020 2019

Label andGraphicMaterialsOperatingincome and $ 205.7 $ 140.9 15.9 % 12.0 %margins, asreportedAdjustments:Restructuringcharges:

Severance and 0.3 15.1 -- 1.3 %related costs

Transaction 1.0 -- 0.1 % -- costs

Gain on (6.9 ) -- (0.5 %) -- investment

Gain on sale (0.5 ) -- (0.1 %) -- of assets

Adjustedoperatingincome and $ 199.6 $ 156.0 15.4 % 13.3 %margins(non-GAAP)

RetailBranding andInformationSolutionsOperatingincome and $ 77.5 $ 49.1 15.3 % 11.5 %margins, asreportedAdjustments:Restructuringcharges:Severance and 2.1 6.3 0.4 % 1.5 %related costsAsset -- 0.1 -- -- impairmentchargesTransaction -- 2.6 -- 0.6 %costsAdjustedoperating $ 79.6 $ 58.1 15.7 % 13.6 %income andmargins(non-GAAP) IndustrialandHealthcareMaterialsOperatingincome and $ 23.3 $ 12.2 12.4 % 7.2 %margins, asreportedAdjustments:Restructuringcharges:Severance and (0.2 ) 1.9 (0.1 %) 1.1 %related costsAsset -- 3.3 -- 1.9 %impairmentchargesAdjustedoperating $ 23.1 $ 17.4 12.3 % 10.2 %income andmargins(non-GAAP)A-7

AVERY DENNISON CORPORATIONPRELIMINARY SUPPLEMENTARY INFORMATION(In millions, except %)(UNAUDITED)Twelve Months EndedNET SALESOPERATING INCOME (LOSS)OPERATING MARGINS2020

2019

2020

2019

2020

2019

(53 weeks)(52 weeks)(53 weeks)(52 weeks)(53 weeks)(52 weeks)Label and Graphic Materials$

4,715.1

$

4,745.9

$

688.8

$

601.5

14.6

%

12.7

%

Retail Branding and Information Solutions1,630.9

1,650.3

144.7

196.6

8.9

%

11.9

%

Industrial and Healthcare Materials625.5

673.9

58.2

60.0

9.3

%

8.9

%

Corporate ExpenseN/A

N/A

(82.5

)

(87.6

)

N/A

N/A

TOTAL FROM OPERATIONS$

6,971.5

$

7,070.1

$

809.2

$

770.5

11.6

%

10.9

%

RECONCILIATION FROM GAAP TO NON-GAAP SUPPLEMENTARY INFORMATIONTwelve Months EndedOPERATING INCOMEOPERATING MARGINS2020

2019

2020

2019

Label and Graphic MaterialsOperating income and margins, as reported$

688.8

$

601.5

14.6

%

12.7

%

Adjustments:Restructuring charges:Severance and related costs27.0

27.7

0.6

%

0.6

%

Asset impairment and lease cancellation charges0.9

1.3

--

--

Transaction and related costs1.7

--

--

--

Gain on investment(6.9

)

--

(0.1

%)

--

Gain on sales of assets(0.5

)

(0.7

)

--

--

Adjusted operating income and margins (non-GAAP)$

711.0

$

629.8

15.1

%

13.3

%

Depreciation and amortization107.0

99.9

2.2

%

2.1

%

Adjusted EBITDA and margins (non-GAAP)$

818.0

$

729.7

17.3

%

15.4

%

Retail Branding and Information SolutionsOperating income and margins, as reported$

144.7

$

196.6

8.9

%

11.9

%

Adjustments:Restructuring charges:Severance and related costs17.1

9.3

1.0

%

0.6

%

Asset impairment charges1.6

0.5

0.1

%

--

Transaction and related costs2.5

2.6

0.2

%

0.2

%

Loss on investment1.5

--

0.1

%

--

Gain on sale of assets--

(2.5

)

--

(0.2

%)

Adjusted operating income and margins (non-GAAP)$

167.4

$

206.5

10.3

%

12.5

%

Depreciation and amortization71.6

52.9

4.4

%

3.2

%

Adjusted EBITDA and margins (non-GAAP)$

239.0

$

259.4

14.7

%

15.7

%

Industrial and Healthcare MaterialsOperating income and margins, as reported$

58.2

$

60.0

9.3

%

8.9

%

Adjustments:Restructuring charges:Severance and related costs4.7

6.1

0.7

%

0.9

%

Asset impairment charges3.7

3.3

0.6

%

0.5

%

Adjusted operating income and margins (non-GAAP)$

66.6

$

69.4

10.6

%

10.3

%

Depreciation and amortization26.7

26.2

4.3

%

3.9

%

Adjusted EBITDA and margins (non-GAAP)$

93.3

$

95.6

14.9

%

14.2

%

A-7

AVERY DENNISON CORPORATIONPRELIMINARY SUPPLEMENTARY INFORMATION(In millions, except %)(UNAUDITED) Twelve Months Ended NET SALES OPERATING INCOME OPERATING (LOSS) MARGINS 2020 2019 2020 2019 2020 2019

(53 (52 (53 (52 (53 (52 weeks) weeks) weeks) weeks) weeks) weeks) Label and $ 4,715.1 $ 4,745.9 $ 688.8 $ 601.5 14.6 % 12.7 %GraphicMaterialsRetail Branding 1,630.9 1,650.3 144.7 196.6 8.9 % 11.9 %and InformationSolutionsIndustrial and 625.5 673.9 58.2 60.0 9.3 % 8.9 %HealthcareMaterialsCorporate N/A N/A (82.5 ) (87.6 ) N/A N/A ExpenseTOTAL FROM $ 6,971.5 $ 7,070.1 $ 809.2 $ 770.5 11.6 % 10.9 %OPERATIONS RECONCILIATION FROM GAAP TO NON-GAAP SUPPLEMENTARY INFORMATION Twelve Months Ended OPERATING INCOME OPERATING MARGINS 2020 2019 2020 2019

Label andGraphicMaterialsOperating income $ 688.8 $ 601.5 14.6 % 12.7 %and margins, asreportedAdjustments:Restructuringcharges:Severance and 27.0 27.7 0.6 % 0.6 %related costsAsset impairmentand lease 0.9 1.3 -- -- cancellationchargesTransaction and 1.7 -- -- -- related costsGain on (6.9 ) -- (0.1 %) -- investmentGain on sales of (0.5 ) (0.7 ) -- -- assetsAdjustedoperating income $ 711.0 $ 629.8 15.1 % 13.3 %and margins(non-GAAP)Depreciation and 107.0 99.9 2.2 % 2.1 %amortizationAdjusted EBITDA $ 818.0 $ 729.7 17.3 % 15.4 %and margins(non-GAAP) Retail Brandingand InformationSolutionsOperating income $ 144.7 $ 196.6 8.9 % 11.9 %and margins, asreportedAdjustments:Restructuringcharges:Severance and 17.1 9.3 1.0 % 0.6 %related costsAsset impairment 1.6 0.5 0.1 % -- chargesTransaction and 2.5 2.6 0.2 % 0.2 %related costsLoss on 1.5 -- 0.1 % -- investmentGain on sale of -- (2.5 ) -- (0.2 %)assetsAdjustedoperating income $ 167.4 $ 206.5 10.3 % 12.5 %and margins(non-GAAP)Depreciation and 71.6 52.9 4.4 % 3.2 %amortizationAdjusted EBITDA $ 239.0 $ 259.4 14.7 % 15.7 %and margins(non-GAAP) Industrial andHealthcareMaterialsOperating income $ 58.2 $ 60.0 9.3 % 8.9 %and margins, asreportedAdjustments:Restructuringcharges:Severance and 4.7 6.1 0.7 % 0.9 %related costsAsset impairment 3.7 3.3 0.6 % 0.5 %chargesAdjustedoperating income $ 66.6 $ 69.4 10.6 % 10.3 %and margins(non-GAAP)Depreciation and 26.7 26.2 4.3 % 3.9 %amortizationAdjusted EBITDA $ 93.3 $ 95.6 14.9 % 14.2 %and margins(non-GAAP)A-8

AVERY DENNISON CORPORATIONPRELIMINARY SUPPLEMENTARY INFORMATION($ in millions)(UNAUDITED)Reconciliation of Adjusted EBITDA Margins and Net Debt to Adjusted EBITDAQTDYTDQTDYTDTotal Company1Q19

2Q19

3Q19

4Q19

2019

1Q20

2Q20

3Q20

4Q20

2020

Net sales$

1,740.1

$

1,795.7

$

1,761.4

$

1,772.9

$

7,070.1

$

1,723.0

$

1,528.5

$

1,729.1

$

1,990.9

$

6,971.5

Operating income before interest expense, other non-operating expense (income), and taxes, as reported181.6

209.1

199.7

180.1

770.5

199.2

123.5

213.5

273.0

809.2

Operating margins, as reported10.4%

11.6%

11.3%

10.2%

10.9%

11.6%

8.1%

12.3%

13.7%

11.6%

Non-GAAP adjustments:Restructuring charges:Severance and related costs10.4

6.1

3.3

25.5

45.3

2.4

37.5

6.5

2.7

49.1

Asset impairment and lease cancellation charges0.3

1.4

-

3.4

5.1

-

1.8

4.4

-

6.2

Other items(3.2)

-

3.4

2.6

2.8

2.5

0.7

1.5

(6.4)

(1.7)

Adjusted operating income (non-GAAP)$

189.1

$

216.6

$

206.4

$

211.6

$

823.7

$

204.1

$

163.5

$

225.9

$

269.3

$

862.8

Adjusted operating margins (non-GAAP)10.9%

12.1%

11.7%

11.9%

11.7%

11.8%

10.7%

13.1%

13.5%

12.4%

Depreciation and amortization$

44.5

$

44.9

$

44.0

$

45.6

$

179.0

$

47.5

$

50.3

$

52.0

$

55.5

$

205.3

Adjusted EBITDA (non-GAAP)$

233.6

$

261.5

$

250.4

$

257.2

$

1,002.7

$

251.6

$

213.8

$

277.9

$

324.8

$

1,068.1

Adjusted EBITDA margins (non-GAAP)13.4%

14.6%

14.2%

14.5%

14.2%

14.6%

14.0%

16.1%

16.3%

15.3%

Total Debt$

2,820.3

$

2,266.2

$

2,144.1

$

2,116.8

Less: Cash and cash equivalents742.0

262.6

284.7

252.3

Net Debt$

2,078.3

$

2,003.6

$

1,859.4

$

1,864.5

Net Debt to Adjusted EBITDA LTM* (non-GAAP)1.7

*LTM = Last twelve months (1Q20 to 4Q20)A-8

AVERY DENNISON CORPORATIONPRELIMINARY SUPPLEMENTARY INFORMATION($ in millions)(UNAUDITED)Reconciliation of Adjusted EBITDA Margins and Net Debt to Adjusted EBITDA QTD YTD QTD YTDTotal Company 1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020

Net sales $ 1,740.1 $ 1,795.7 $ 1,761.4 $ 1,772.9 $ 7,070.1 $ 1,723.0 $ 1,528.5 $ 1,729.1 $ 1,990.9 $ 6,971.5

Operatingincome beforeinterestexpense,other 181.6 209.1 199.7 180.1 770.5 199.2 123.5 213.5 273.0 809.2non-operatingexpense(income), andtaxes, asreportedOperating 10.4% 11.6% 11.3% 10.2% 10.9% 11.6% 8.1% 12.3% 13.7% 11.6%margins, asreportedNon-GAAPadjustments:Restructuringcharges:Severance and 10.4 6.1 3.3 25.5 45.3 2.4 37.5 6.5 2.7 49.1related costsAssetimpairment 0.3 1.4 - 3.4 5.1 - 1.8 4.4 - 6.2and leasecancellationchargesOther items (3.2) - 3.4 2.6 2.8 2.5 0.7 1.5 (6.4) (1.7)

Adjustedoperating $ 189.1 $ 216.6 $ 206.4 $ 211.6 $ 823.7 $ 204.1 $ 163.5 $ 225.9 $ 269.3 $ 862.8income(non-GAAP)Adjustedoperating 10.9% 12.1% 11.7% 11.9% 11.7% 11.8% 10.7% 13.1% 13.5% 12.4%margins(non-GAAP)Depreciation $ 44.5 $ 44.9 $ 44.0 $ 45.6 $ 179.0 $ 47.5 $ 50.3 $ 52.0 $ 55.5 $ 205.3andamortizationAdjusted $ 233.6 $ 261.5 $ 250.4 $ 257.2 $ 1,002.7 $ 251.6 $ 213.8 $ 277.9 $ 324.8 $ 1,068.1EBITDA(non-GAAP)AdjustedEBITDA 13.4% 14.6% 14.2% 14.5% 14.2% 14.6% 14.0% 16.1% 16.3% 15.3%margins(non-GAAP) Total Debt $ 2,820.3 $ 2,266.2 $ 2,144.1 $ 2,116.8

Less: Cash 742.0 262.6 284.7 252.3and cashequivalentsNet Debt $ 2,078.3 $ 2,003.6 $ 1,859.4 $ 1,864.5

Net Debt toAdjusted 1.7EBITDA LTM*(non-GAAP)*LTM = Lasttwelve months(1Q20 to4Q20)A-9

AVERY DENNISON CORPORATIONPRELIMINARY SUPPLEMENTARY INFORMATION(UNAUDITED)Fourth Quarter 2020TotalCompanyLabel and Graphic

Materials

RetailBranding andInformationSolutionsIndustrial andHealthcareMaterialsReconciliation from GAAP to Non-GAAP sales changeReported net sales change12.3%

10.1%

19.0%

10.8%

Foreign currency translation(2.3%)

(2.5%)

(0.9%)

(4.0%)

Extra week impact(4.9%)

(4.1%)

(6.6%)

(6.1%)

Sales change ex. currency (non-GAAP)(1)5.2%

3.6%

11.6%

0.7%

Acquisitions(2.0%)

--

(8.4%)

--

Organic sales change (non-GAAP)(1)3.2%

3.6%

3.1%

0.7%

Full Year 2020TotalCompanyLabel andGraphicMaterialsRetailBranding andInformationSolutionsIndustrial andHealthcareMaterialsReconciliation from GAAP to Non-GAAP sales changeReported net sales change(1.4%)

(0.6%)

(1.2%)

(7.2%)

Foreign currency translation0.9%

1.2%

0.6%

0.1%

Extra week impact(1.3%)

(1.0%)

(1.7%)

(1.6%)

Sales change ex. currency (non-GAAP)(1)(1.7%)

(0.5%)

(2.3%)

(8.7%)

Acquisitions(1.7%)

--

(7.2%)

--

Organic sales change (non-GAAP)(1)(3.4%)

(0.5%)

(9.5%)

(8.7%)

(1) Totals may not sum due to rounding.A-9

AVERY DENNISON CORPORATIONPRELIMINARY SUPPLEMENTARY INFORMATION(UNAUDITED) Fourth Quarter 2020 Label and Retail Industrial Total Graphic Branding and Company and Healthcare Materials Information Materials SolutionsReconciliation from GAAP to Non-GAAPsales changeReported net sales change 12.3% 10.1% 19.0% 10.8%

Foreign currency translation (2.3%) (2.5%) (0.9%) (4.0%)

Extra week impact (4.9%) (4.1%) (6.6%) (6.1%)

Sales change ex. currency (non-GAAP)^ 5.2% 3.6% 11.6% 0.7%(1)Acquisitions (2.0%) -- (8.4%) --

Organic sales change (non-GAAP)^(1) 3.2% 3.6% 3.1% 0.7%

Full Year 2020 Retail Industrial Total Label and Branding and Company Graphic and Healthcare Materials Information Materials SolutionsReconciliation from GAAP to Non-GAAPsales changeReported net sales change (1.4%) (0.6%) (1.2%) (7.2%)

Foreign currency translation 0.9% 1.2% 0.6% 0.1%

Extra week impact (1.3%) (1.0%) (1.7%) (1.6%)

Sales change ex. currency (non-GAAP)^ (1.7%) (0.5%) (2.3%) (8.7%)(1)Acquisitions (1.7%) -- (7.2%) --

Organic sales change (non-GAAP)^(1) (3.4%) (0.5%) (9.5%) (8.7%)

^(1) Totals may not sum due torounding.A-9 (continued)

AVERY DENNISON CORPORATIONPRELIMINARY SUPPLEMENTARY INFORMATION2020 Monthly Sales Trends (comparisons to prior year)(UNAUDITED)Total CompanyMarAprMayJunJulAugSepOctNovDecReconciliation from GAAP to Non-GAAP sales changeReported net sales change(1)2

%

(18

%)

(15

%)

(12

%)

(7

%)

(1

%)

1

%

7

%

23

%

9

%

Foreign currency translation3

%

3

%

3

%

3

%

3

%

1

%

(1

%)

(2

%)

(2

%)

(3

%)

Extra week impact--

--

--

--

--

--

--

--

(16

%)

--

Sales change ex. currency (non-GAAP)(2)5

%

(16

%)

(11

%)

(10

%)

(4

%)

--

--

5

%

5

%

6

%

Acquisitions(2

%)

(2

%)

(2

%)

(2

%)

(3

%)

(2

%)

(2

%)

(2

%)

(2

%)

(2

%)

Organic sales change (non-GAAP)(2)3

%

(17

%)

(13

%)

(11

%)

(7

%)

(2

%)

(2

%)

3

%

3

%

4

%

Label and Graphic MaterialsMarAprMayJunJulAugSepOctNovDecReconciliation from GAAP to Non-GAAP sales changeReported net sales change(1)1

%

(7

%)

(7

%)

(11

%)

(9

%)

(2

%)

--

4

%

19

%

9

%

Foreign currency translation4

%

4

%

5

%

3

%

3

%

1

%

(1

%)

(2

%)

(2

%)

(3

%)

Extra week impact--

--

--

--

--

--

--

--

(13

%)

--

Sales change ex. currency (non-GAAP)(2)5

%

(4

%)

(2

%)

(8

%)

(6

%)

(1

%)

(1

%)

2

%

3

%

6

%

Acquisitions--

--

--

--

--

--

--

--

--

--

Organic sales change (non-GAAP)(2)5

%

(4

%)

(2

%)

(8

%)

(6

%)

(1

%)

(1

%)

2

%

3

%

6

%

Retail Branding and Information SolutionsMarAprMayJunJulAugSepOctNovDecReconciliation from GAAP to Non-GAAP sales changeReported net sales change(1)8

%

(48

%)

(32

%)

(10

%)

5

%

5

%

4

%

15

%

34

%

12

%

Foreign currency translation2

%

1

%

1

%

1

%

2

%

1

%

--

--

(1

%)

(1

%)

Extra week impact--

--

--

--

--

--

--

--

(23

%)

--

Sales change ex. currency (non-GAAP)(2)9

%

(47

%)

(30

%)

(9

%)

7

%

6

%

4

%

15

%

10

%

10

%

Acquisitions(7

%)

(7

%)

(7

%)

(8

%)

(12

%)

(11

%)

(8

%)

(9

%)

(8

%)

(8

%)

Organic sales change (non-GAAP)(2)2

%

(54

%)

(38

%)

(17

%)

(5

%)

(5

%)

(5

%)

6

%

2

%

2

%

Industrial and Healthcare MaterialsMarAprMayJunJulAugSepOctNovDecReconciliation from GAAP to Non-GAAP sales changeReported net sales change(1)(8

%)

(19

%)

(27

%)

(22

%)

(17

%)

(5

%)

(1

%)

6

%

26

%

2

%

Foreign currency translation3

%

2

%

2

%

2

%

2

%

--

(2

%)

(3

%)

(4

%)

(4

%)

Extra week impact--

--

--

--

--

--

--

--

(20

%)

--

Sales change ex. currency (non-GAAP)(2)(6

%)

(17

%)

(25

%)

(21

%)

(15

%)

(5

%)

(4

%)

3

%

2

%

(3

%)

Acquisitions--

--

--

--

--

--

--

--

--

--

Organic sales change (non-GAAP)(2)(6

%)

(17

%)

(25

%)

(21

%)

(15

%)

(5

%)

(4

%)

3

%

2

%

(3

%)

(1) Includes an extra week in Nov.(2) Totals may not sum due to rounding. View source version on businesswire.com: https://www.businesswire.com/news/home/20210203005247/en/

CONTACT: Media Relations: Rob Six (626) 304-2361 rob.six@averydennison.com

CONTACT: Investor Relations: John Eble (440) 534-6290 john.eble@averydennison.com