2024 Integrated Sustainability and Annual Reports; 2025 Notice and Proxy Statement

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Making Possible

LETTER FROM OUR PRESIDENT & CEO

Deon Stander

Fellow Stakeholders,

Our team at Avery Dennison again delivered strong results across our businesses last year, achieving top- and bottomline growth at the upper end of our guidance and making excellent progress toward our long-term strategic and durability of our portfolio, the resilience of our industryleading market positions, the agility and talent of our global

These factors have and will continue to provide us with multiple levers to deliver strong results and compound

The strength of our portfolio

Our Materials and Solutions Groups both delivered strong top- and bottom-line results, once again demonstrating recovered from downstream inventory destocking, as expected, our relentless focus on productivity drove margin expansion, and our continued investment in innovative materials and digitally enabled packaging solutions delivered strong growth across high-value of delivering GDP-plus growth, margin expansion and top

In the Solutions business, with apparel industry volumes having normalized, our apparel growth was strong across all products and solutions that serve our customers’ evolving needs and create potential new avenues of growth and of our overall portfolio, provides the platform for us to

Our ability to continually expand the value proposition of our foundational products is a key to our consistent

Catalysts for strong growth and margin expansion in high-value categories

Our base business foundation delivers consistent results and strong cash flow

Our leadership position in our base businesses remains productivity initiatives to drive margin improvement and materials innovation initiatives to expand our market share business, our focus on material reengineering, lean operating

into high-value categories that can deliver faster, more further innovation and above-average growth well into specialty and durable labels, industrial tapes, graphics, Embelex, Vestcom and our Intelligent Labels platform, where we are uniquely positioned to enable digital build on our well-established position in these categories, creating a more differentiated and, ultimately, more valuable half of our portfolio and have accounted for roughly three percentage points of our organic sales growth annually categories continues to expand, we will continue to invest

Solving industry challenges

Much of our forward momentum and growth is now driven by strategies focused on solving the new and increasingly

accelerating technological change and evolving consumer expectations, our customers are increasingly turning to Avery Dennison for solutions that can optimize their supply chains, reduce waste, advance the sustainability, circularity and transparency of their products, and increase

Our efforts in 2024 resulted in new innovations and portfolio extensions that help our customers expand supply chain visibility and reduce waste, extend product performance and lifespan, foster packaging circularity and enable deeper solutions and advanced materials innovations are making ideas and the value we create that we have embedded them of successful innovation and our path to sustainable long-

Advancing sustainability

Sustainability remains a driver of innovation and operational material circularity, the environmental impact of our to develop differentiated products and solutions that create value for our customers by addressing some of their most environmental impact by eliminating waste and using our

year advancing our sustainability goals and are largely on

Our commitment to making a positive impact on our employees and the communities in which we operate is

disaster relief efforts, the Avery Dennison Foundation supports critical community needs worldwide, including

Creating long-term stakeholder value

exceptional value to all our stakeholders, execute our clear competitive advantages in both our Materials and global team, we are uniquely positioned to unlock substantial growth opportunities in 2025, marking 90

Thank you to our entire Aver y Dennison team for their passion and dedication and to you for your interest in

report and our 2025 notice and proxy statement and highlights our water are publicly available on our website esg.averydennison.com

OUR COMPANY

comprehensive branding and information solutions portfolio

By harnessing our portfolio’s strength and breadth, our teams deliver products and solutions that optimize labor and circularity and transparency, and better connect brands and

(RFID) inlays and tags and software applications that carry or display

solutions for the home and personal care, food and grocery, apparel, general

Our commitment to innovation, creating value and growth is fueled by a label and underlies our nearly century-long commitment to innovation, as

As leaders in the industries we serve, our businesses have unique

Our Materials Group is a leading global provider to the pressure-sensitive label and include label materials, graphics and enhance brands’ shelf appeal, inform shoppers, advance circularity, increase transparency, help reduce waste and

Our graphics portfolio offers highly engineered products ranging from vehicle portfolio includes bonding and functional materials for applications in various industr y sectors such as automotive, building and the group’s materials science capabilities and process engineering expertise to develop and manufacture Intelligent Labels at scale and drive their further adoption

Our Solutions Group is a leading provider of information and branding solutions that cover worldwide marketplace needs

data management to branding and embellishment, productivity, pricing

frequency RFID solutions provider, we empower customers across multiple retail and industry segments, including apparel, logistics, food and grocery and general retail, to connect the physical and digital worlds by enabling a digital identity and

Our innovation and data management capabilities, global footprint and market access continuously expand our

Our culture is the foundation of everything we do, and our company

Our Stakeholders

Employees

Communities

Investors

These core values shape our behavior and support our business

OUR BUSINESS STRATEGIES

growth and top quartile returns across cycles and expanding our growth

Our Strategies Drive outsized growth in high-value categories

Grow profitably in our base businesses

Lead at the intersection of the physical and digital

Effectively allocate capital and relentlessly focus on productivity

Lead in an environmentally and socially responsible manner

SUSTAINABILITY HIGHLIGHTS

Sustainability is a strategic business imperative and a customer expectation that presents opportunities to create differentiated solutions with our customers’ evolving needs and preferences while simultaneously

Innovating products and solutions that reduce their environmental impact and address platforms improve our products’ recycled content and recyclability and create solutions

Innovation also extends to our manufacturing operations, where we continuously seek strategies and collaborating with industry partners to develop solutions to improve measurement methodology by shifting from a spend-based approach to one that is available on investors.averydennison.com and esg.averydennison.com

Progress Toward 2025 and 2030 Goals

7 For detailed information on our progress toward our 2025 and 2030 goals, please refer to our ESG Download available at esg.averydennison.com

OUR STRATEGIES IN ACTION

Drive outsized growth in high-value categories

Our proprietary technologies, scale and innovation create targeted high-value categories. We continue to invest in developing innovations that deliver value to

Peel and reseal lidding film cuts plastic package usage by up to 30%

Our Materials Group is helping brands reduce plastic usage by replacing rigid plastic tops with consumerplastic usage by up to 30% and allows consumers improvements boost productivity and cut costs for produce packers while offering food industry converters

Peel and reseal lidding helps reduce environmental impact, offers visual appeal compared to traditional clamshell packaging and meets increasing demands options and extends product freshness; its easy peel/ capabilities and adhesives make peel and reseal package per formance in multiple produce sectors and

Our innovation mindset is rooted in our extensive experience developing solutions bolstered by our fundamental expertise in materials science, radio-frequency design, engineering and process technology.

Kroger tracks bakery department inventory with RFID automation technology

grocer, to provide an item-level RFID inventory

The item-level RFID solution captures critical data to maximize freshness, reduce waste and optimize associates’ are optimally fresh and on shelves at peak retail hours, our Intelligent Labels platform in a key market sector and

End-to-end supply chain solutions improve item-level visibility and efficiency

By leveraging our RFID-enabled intelligent labels and our SM businesses with transparency across the supply chain, enabling them to make decisions that optimize production

As we expand our RFID technology into the logistics sector, we are improving item-level tracking and accuracy, accelerating operational productivity and saving time and labor. We are also changing how brands and retailers view supply chain operations and implementing improvements that quickly deliver savings and advance overall efficiency.

distributors and retailers have the visibility they need to give apparel brands, retailers and factories traceability

improve operations, productivity, inventor y and order

Optica™ end-to-end solutions supply accurate

Grow profitably in our base businesses

Innovations push polymer science boundaries

extensive experience in developing

Our Materials Group’s research and development (R&D) team differentiates our company through vertical integration in adhesives and innovations in polymer advancements in acr ylic emulsion adhesives and the performance requirements of solvent-based acrylic, These solvent-free alternatives use less energy, have low or no volatile organic compounds, are cost effective and enhance the performance of core labels, tapes and Our innovative adhesives, coatings and wide-web laminating platforms are foundational technologies that, teams embody decades of materials science and process industry associations invite us to partner with them for adhesives innovations are providing sustainable solutions

Innovative labeling solutions unlock last-mile efficiencies

innovative labeling solutions for the logistics sector,

Our materials science expertise means we are able to continuously improve all label qualities at scale, allowing

To address the challenges of last-mile delivery, we partnered with a multinational logistics technology solution dramatically reduced misloads by 70% and from the initial facility scan to the recipient’s door, enhanced carrier sorting accuracy provided customers

The scalable solution boosts productivity by automating manual scanning, freeing up valuable staff time and allowing for faster and more accurate loading and

Lead at the intersection of the physical and digital

storeLink™ unlocks customer value through digital innovation

Our Vestcom business combined its industry-leading portfolio of analog shelf-edge solutions and longestablished knowledge of managing complex price and retailers to integrate electronic shelf labels and screens while continuing to employ print mediums where it

to in-venue activations.

labels in real-time, schedule and stream dynamic digital display content, enhance the shopper experience and

Group developed unique in-venue customized fan experiences powered by innovative digital technology that

large American retailer as proof of technology and then

In-venue customization elevates the fan experience in U.S. sports

in 2024, we are elevating cutting-edge fan experiences, an achievement that employs our capability to innovate

Digital technology enhances every business transaction at sports venues, from ticketing and concessions to

Innovations are evident in kiosks, software and hardware

Through various applications that connect the physical and digital, we provide an array of experiences, including frictionless checkout , to create a smooth and convenient

Effectively allocate capital and relentlessly focus on productivity

while returning cash to shareholders through share repurchases and

that enable us to continuously improve and make more made available by digitalization, we enhance our decision-

In terms of productivity, we are initiating new manufacturing processes, streamlining existing ones and optimizing and improvements constitute a growth component that allows us to broaden our service and quality offering, and

Data-driven innovation and digital technology add customer value to our manufacturing processes

Manufacturing innovation is driving value in our Solutions Group’s apparel business by improving the customer

driven ecosystem creates a foundation for meeting system, along with advanced production scheduling, IoT, automation and innovative technologies and processes, is

Our standardized global processes reduce errors and driven decision-making improves production speed, solves and Lean Six Sigma are eliminating waste; at the same

Manufacturing innovation employs new technologies, platforms and processes to enhance our capabilities and R&D digitalization accelerates innovation, enhances collaboration and improves data-driven decisions Materials Group’s R&D team embarked on a digitalization services, enhance decision-making capabilities and digitalization streamlines the product development and connected technologies to drive collaboration and digital mindset of our workforce, where R&D employees gained access to online learning tools complemented by

Our digitalization initiatives support our goal of integrating materials science and business model data into the decision-making process and creating a cognitive business tangible results include data science models for solvent adhesives, release systems and accelerated aging that are each individual’s power to contribute and innovate and that

Manufacturing modernization supports high-value category growth

In 2024, we made decisive moves to address global marketplace challenges by modernizing and consolidating manufacturing resources and intently focusing on growth

production locations, we streamlined operations across Europe to allow our teams to focus on a cohesive set of

For example, in Europe, we reimagined and modernized our facility in Soignies, Belgium, shifting the production of labels and industrial tapes to other sites in Belgium, Soignies plant address global customer needs and focus

Plant modernizations also took place in North America, a multi-continent effort to enhance our innovation and

Lead

in an environmentally and socially responsible manner

our understanding that doing so

the industry’s top talent.

By using our linerless

GOAL 1

Deliver innovations that advance the circular economy

and acknowledge the crucial role that labels, materials and information play in advancing a more sustainable and innovation and product designs that foster circularity, minimize material usage and waste, incorporate recycled

In 2024, we continued to utilize our materials science and digital innovation capabilities to introduce new products

Liner recycling

In 2024, we extended our portfolio of solutions to provide customers with multiple options to solve challenges

wound, micro-perforated linerless labels, offer converting customers in the food, beverage and home care sectors the option of recycling release liners through our AD

Innovation leadership label recycling solutions for high-density polyethylene

Guidance Path recognition from the Association of

A range of our paper label solutions for paper and passed the European Paper Recycling Council (EPRC) are necessary to bring products into compliance with

innovations are being recognized as addressing key industry challenges, which strengthens our differentiation

“GOAL 2

Reduce our environmental impact in our operations and supply chain

environmental impact by reducing waste and making these initiatives throughout our supply chain to improve our operational resilience and lower our supply chain

In 2024, we continued reducing our operations’ energy intensity by investing in real-time energy monitoring, optimizing our manufacturing equipment and exploring

We commissioned a state-ofthe-art RFID manufacturing and innovation center in Querétaro, Mexico. The site is our largest and most sustainable RFID manufacturing facility, having received the U.S. Green Building Council’s LEED Gold accreditation.

a new virtual power purchase agreement (vPPA) to vPPA initiates our 10-year commitment to purchase multi-technology, customer-focused renewable energy

an amount equivalent to the annual consumption of 25,000 Spanish households, and prevent the emission of 2

Our commitment to reducing our environmental impact commissioned a state-of-the-art RFID manufacturing and largest and most sustainable RFID manufacturing facility, 1 that a building has excelled in its sustainable design and operation and meets strict standards for energy and

ADF makes grants to nonprofit organizations worldwide that serve local communities and support disaster response.

ADF supports the Global Fund for Children

Environmental sustainability is an ADF strategic pillar that

In 2024, ADF awarded a grant to the Global Fund for Children, which then expanded its Spark Fund in Southeast

GOAL 3

Make a positive social impact by enhancing the livelihood of our people and our communities

Our community investment through the Avery Dennison Foundation (ADF ) increases education access, advances environmental sustainability and supports secure organizations worldwide that serve local communities

Young leaders from Thailand, Vietnam and Singapore participated in workshops on grantmaking and decision-

concentrate efforts on climate programs and addressed the disparities in access to resources among the three communities and grassroots organizations, with nine

Grants ranged from $10,000 to $15,000, with grantee organizations attending to climate programs for local

focused on carbon neutrality and net zero emissions, climate resilience and adaptation, as well as biodiversity

Global grantmaking

In 2024, we granted approximately $700,000 for girls’

provided nearly $350,000 to support secure livelihoods by improving economic access in Pakistan, provided support for refugee women and children in Greece and sponsored

1 LEED (Leadership in Energy and Environmental Design) is

Community investment

Our employees volunteer and contribute funds to help advance community investments with monetary in Brazil, Japan and Spain and provided support in the assists employees impacted by natural disasters and other

“Youth education and entrepreneurship

Scholarship America, annually awards scholarships to in 2024, ADF partnered with the Institute of International Education to provide scholarships to children of employees

In 2024, ADF partnered with the Institute of International Education to provide scholarships to children of employees in Bangladesh, Brazil, Honduras, India, Malaysia, Mexico, Sri Lanka, South Africa, Turkey and Vietnam.

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UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION WASHINGTON,DC20549

FORM10-K

È ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 ForthefiscalyearendedDecember28,2024or

‘ TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 Forthetransitionperiodfromto

Commissionfilenumber1-7685

AVERYDENNISONCORPORATION

(ExactNameofRegistrantasSpecifiedinItsCharter) Delaware95-1492269 (StateofIncorporation)(I.R.S.EmployerIdentificationNo.)

8080NortonParkway Mentor,Ohio44060 (AddressofPrincipalExecutiveOffices)(ZipCode)

Registrant’stelephonenumber,includingareacode: (440)534-6000

SecuritiesregisteredpursuanttoSection12(b)oftheAct:

TitleofEachClass TradingSymbol(s) Nameofeachexchangeonwhichregistered Commonstock,$1parvalueAVYNewYorkStockExchange 1.25%SeniorNotesdue2025AVY25NasdaqStockMarket 3.75%SeniorNotesdue2034AVY34NasdaqStockMarket

SecuritiesregisteredpursuanttoSection12(g)oftheAct: Notapplicable.

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes È No ‘

IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13or15(d)oftheAct.Yes ‘ No È

Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof 1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfiling requirementsforthepast90days.Yes È No ‘

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405 ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuch files).Yes È No ‘

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompany, oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowth company”inRule12b-2oftheExchangeAct.

LargeAcceleratedFiler È Acceleratedfiler ‘ Non-acceleratedfiler ‘ Smallerreportingcompany ‘ Emerginggrowthcompany ‘

Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwith anyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct. ‘

Indicatebycheckmarkwhethertheregistranthasfiledareportonandattestationtoitsmanagement’sassessmentoftheeffectivenessofits internalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b))bytheregisteredpublicaccountingfirmthat preparedorissueditsauditreport. È

IfsecuritiesareregisteredpursuanttoSection12(b)oftheAct,indicatebycheckmarkwhetherthefinancialstatementsoftheregistrantincluded in thefilingreflectthecorrectionofanerrortopreviouslyissuedfinancialstatements. ‘

Indicatebycheckmarkwhetheranyofthoseerrorcorrectionsarerestatementsthatrequiredarecoveryanalysisofincentive-basedcompensation receivedbyanyoftheregistrant’sexecutiveofficersduringtherelevantrecoveryperiodpursuantto§240.10D-1(b). ‘

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).Yes ‘ No È

Theaggregatemarketvalueofvotingandnon-votingcommonequityheldbynon-affiliatesasofJune28,2024,thelastbusinessdayofthe registrant’smostrecentlycompletedsecondfiscalquarter,wasapproximately$17.5billion.

Numberofsharesofcommonstock,$1parvalue,outstandingasofFebruary22,2025,theendoftheregistrant’smostrecentfiscalmonth: 78,994,622.

ThefollowingdocumentsareincorporatedbyreferenceintothePartsofthisForm10-Kindicatedbelow:

Document

Incorporatedbyreferenceinto: PortionsofDefinitiveProxyStatementforAnnualMeetingofStockholderstobeheldonApril24,2025PartsIII,IV

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PARTII

Item5.MarketforRegistrant’sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquity

Item7.Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations24

Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk42 Item8FinancialStatementsandSupplementaryData43 Item9.ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure89

Item9C.DisclosureRegardingForeignJurisdictionsthatPreventInspections89

PARTIII

Item10.Directors,ExecutiveOfficersandCorporateGovernance90

Item12.SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters91 Item13.CertainRelationshipsandRelatedTransactions,andDirectorIndependence91 Item14.PrincipalAccountantFeesandServices91

PARTIV

Item15.ExhibitsandFinancialStatementSchedules92

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ThemattersdiscussedinthisAnnualReportonForm10-Kcontain“forward-lookingstatements”withinthemeaning ofthePrivateSecuritiesLitigationReformActof1995.Thesestatements,whicharenotstatementsofhistoricalfact, containestimates,assumptions,projectionsand/orexpectationsregardingfutureevents,whichmayormaynotoccur. Wordssuchas“aim,”“anticipate,”“assume,”“believe,”“continue,”“could,”“estimate,”“expect,”“foresee,”“guidance,” “intend,”“may,”“might,”“objective,”“plan,”“potential,”“project,”“seek,”“shall,”“should,”“target,”“will,”“would,”or variationsthereof,andotherexpressionsthatrefertofutureeventsandtrends,identifyforward-lookingstatements.Our forward-lookingstatements,andfinancialorotherbusinesstargets,aresubjecttocertainrisksanduncertainties,which couldcauseouractualresultstodiffermateriallyfromtheexpectedresults,performanceorachievementsexpressedor impliedbysuchforward-lookingstatements.

Webelievethatthemostsignificantriskfactorsthatcouldaffectourfinancialperformanceinthenearterminclude: (i)theimpactonunderlyingdemandforourproductsfromglobaleconomicconditions,geopoliticaluncertainty,and changesinenvironmentalstandards,regulationsandpreferences;(ii)competitors’actions,includingpricing,expansionin keymarkets,andproductofferings;(iii)thecostandavailabilityofrawmaterials;(iv)thedegreetowhichhighercostscan beoffsetwithproductivitymeasuresand/orpassedontocustomersthroughpriceincreases,withoutasignificantlossof volume;(v)foreigncurrencyfluctuations;and(vi)theexecutionandintegrationofacquisitions.

Certainrisksanduncertaintiesarediscussedinmoredetailunder“RiskFactors”and“Management’sDiscussionand AnalysisofFinancialConditionandResultsofOperations”inthisAnnualReportonForm10-K.Actualresultsandtrends maydiffermateriallyfromhistoricaloranticipatedresultsdependingonavarietyoffactors,includingbutnotlimitedto, risksanduncertaintiesrelatedtothefollowing:

•InternationalOperations–worldwideeconomic,social,geopoliticalandmarketconditions;changesin geopoliticalconditions,includingthoserelatedtotraderelationsandtariffs,China,theRussia-Ukrainewar,the Israel-HamaswarandrelatedhostilitiesintheMiddleEast;fluctuationsinforeigncurrencyexchangerates;and otherrisksassociatedwithinternationaloperations,includinginemergingmarkets

•OurBusiness–fluctuationsindemandaffectingsalestocustomers;fluctuationsinthecostandavailabilityof rawmaterialsandenergy;changesinourmarketsduetocompetitiveconditions,technologicaldevelopments, lawsandregulations,customerpreferences;environmentalregulationsandsustainabilitytrends;theimpactof competitiveproductsandpricing;theexecutionandintegrationofacquisitions;sellingprices;customerand supplierconcentrationsorconsolidations;thefinancialconditionofdistributors;outsourcedmanufacturers; productandservicequalityclaims;restructuringandothercostreductionactions;ourabilitytogenerate sustainedproductivityimprovementandourabilitytoachieveandsustaintargetedcostreductions;thetimely developmentandmarketacceptanceofnewproducts,includingsustainableorsustainably-sourcedproducts; ourinvestmentindevelopmentactivitiesandnewproductionfacilities;thecollectionofreceivablesfrom customers;andoursustainabilityandgovernancepractices

•InformationTechnology–disruptionsininformationtechnologysystems;cybersecurityeventsorothersecurity breaches;andsuccessfulinstallationofneworupgradedinformationtechnologysystems

•IncomeTaxes–fluctuationsintaxrates;changesintaxlawsandregulations,anduncertaintiesassociatedwith interpretationsofsuchlawsandregulations;outcomeoftaxaudits;andtherealizationofdeferredtaxassets

•HumanCapital–recruitmentandretentionofemployeesandcollectivelaborarrangements

•OurIndebtedness–ourabilitytoobtainadequatefinancingarrangementsandmaintainaccesstocapital;credit ratingrisks;fluctuationsininterestrates;andcompliancewithourdebtcovenants

•OwnershipofOurStock–potentialsignificantvariabilityofourstockpriceandamountsoffuturedividendsand sharerepurchases

•LegalandRegulatoryMatters–protectionandinfringementofourintellectualproperty;theimpactoflegaland regulatoryproceedings,includingwithrespecttocomplianceandanti-corruption,environmental,healthand safety,andtradecompliance

•OtherFinancialMatters–fluctuationsinpensioncostsandgoodwillimpairment

Ourforward-lookingstatementsaremadeonlyasofFebruary26,2025.Weassumenodutytoupdatethese forward-lookingstatementstoreflectnew,changedorunanticipatedeventsorcircumstances,otherthanasmaybe requiredbylaw.

PARTI

Item1.BUSINESS

CompanyBackground

AveryDennisonCorporation(“AveryDennison”orthe“Company”andgenerallyreferredtoas“we”or“us”)was incorporatedinDelawarein1977asAveryInternationalCorporation,thesuccessorcorporationtoaCalifornia corporationofthesamenameincorporatedin1946.In1990,wemergedoneofoursubsidiariesintoDennison ManufacturingCompany(“Dennison”),asaresultofwhichDennisonbecameourwholly-ownedsubsidiaryandin connectionwithwhichwechangedournametoAveryDennisonCorporation.Youcanlearnmoreaboutusbyvisitingour websiteatwww.averydennison.com.Ourwebsiteisnotintendedtofunctionasahyperlinkandtheinformationonour websiteisnot,norshoulditbeconsidered,partofthisreportorincorporatedbyreferenceintothisreport.

BusinessOverviewandReportableSegments

Weareaglobalmaterialsscienceanddigitalidentificationsolutionscompany.WeareMakingPossibleTM products andsolutionsthathelpadvancetheindustriesweserve,providingbrandingandinformationsolutionsthatoptimizelabor andsupplychainefficiency,reducewaste,advancesustainability,circularityandtransparency,andbetterconnectbrands andconsumers.Wedesignanddeveloplabelingandfunctionalmaterials,radio-frequencyidentification(“RFID”)inlays andtags,softwareapplicationsthatconnectthephysicalanddigital,andofferingsthatenhancebrandedpackagingand carryordisplayinformationthatimprovesthecustomerexperience.Weserveanarrayofindustriesworldwide,including homeandpersonalcare,apparel,generalretail,e-commerce,logistics,foodandgrocery,pharmaceuticalsand automotive.

Webelievethatourexposuretodiverseandgrowingmarkets,thesizeandscaleofoperations,ourinnovation capabilities,productivityculture,andbrandstrengthacrossourbusinessesaretheprimaryadvantagesinmaintainingand furtherdevelopingourcompetitiveposition.

Ourreportablesegmentsforfiscalyear2024wereMaterialsGroupandSolutionsGroup.In2024,ourMaterials GroupandSolutionsGroupreportablesegmentscomprisedapproximately69%and31%,respectively,ofourtotalnet sales.

In2024,internationaloperationsconstitutedasubstantialmajorityofourbusiness,representingapproximately 70%ofournetsales.AsofDecember28,2024,weoperatedover200manufacturinganddistributionfacilitiesandhad locationsinmorethan50countries.

MaterialsGroup

OurMaterialsGroupisaleadingglobalprovidertothepressure-sensitivelabelandgraphicsindustries.Our innovativeproductsincludelabelmaterials,graphicsandreflectivematerialsandfunctionalbondingmaterials,liketapes. Ourlabelmaterialsenhancebrands’shelfappeal,informshoppers,advancecircularity,increasetransparency,helpreduce wasteandimproveoperationalsupplychainefficiency.Ourgraphicsportfoliooffershighlyengineeredproductsranging fromvehiclewrapstoarchitecturalfilms.Ourtapesportfolioincludesbondingandfunctionalmaterialsforapplicationsin variousindustrysectorssuchasautomotive,buildingandconstructionandelectronics.Weleveragethegroup’smaterials sciencecapabilitiesandprocessengineeringexpertisetodevelopandmanufactureIntelligentLabelsatscaleanddrive theirfurtheradoptionthroughourconverterchannelaccess.

OurMaterialsGroupmanufacturesandsellsFasson®-,JAC®-,andAveryDennison®-brandpressure-sensitive labelmaterialsandperformancetapesproducts,AveryDennison®-andMactac®-brandgraphics,andAveryDennison®brandreflectiveproducts.MaterialsGroup’sbusinesstendsnottobeseasonal,exceptforcertainoutdoorgraphicsand reflectiveproducts.

Pressure-sensitivematerialsconsistprimarilyofpapers,plasticfilmsandmetalfoils,whicharecoatedwith internally-developedandpurchasedadhesives,andthenlaminatedwithspecially-coatedbackingpapersandfilms.They arethensoldinrollorsheetformwitheithersolidorpatternedadhesivecoatingsinawiderangeoffacematerials,sizes, thicknessesandadhesiveproperties.

Apressure-sensitive,orself-adhesive,materialisonethatadherestoasurfacebypress-oncontact.Itgenerally consistsoffourlayers:afacematerial,whichmaybepaper,metalfoilorplasticfilm;anadhesive,whichmaybe 2 2024AnnualReport | AveryDennisonCorporation

permanentorremovable;areleasecoating;andabackingmaterialtoprotecttheadhesivefromprematurecontactwith othersurfacesthatcanalsoserveasacarrierforsupportinganddispensingindividuallabels.Whentheproductsare readyforuse,thereleasecoatingandprotectivebackingareremoved,exposingtheadhesivesothatthelabelorother facematerialmaybepressedorrolledintoplace.Becausetheyareeasytoapplywithouttheneedforadhesiveactivation, self-adhesivematerialscanprovidecostsavingscomparedtoothermaterialsthatrequireheat-ormoisture-activated adhesives,whilealsoofferingaestheticandotheradvantagesoveralternativetechnologies.

Labelmaterialsaresoldworldwidetolabelconvertersforlabeling,decoratingandspecialtyapplicationsinthe food,homeandpersonalcare,beerandbeverage,durables,pharmaceutical,wineandspiritsandlogisticsmarket segments.Whenusedinpackagedecorationapplications,thevisualappealofself-adhesivematerialscanhelpincrease salesoftheproductsonwhichthematerialsareapplied.Self-adhesivematerialsarealsousedtoconveyvariable informationthroughvariousdigitaltriggers,includingbarcodes,QRcodesandRFIDinlays,forapplicationssuchas shippinglabelsandweightandpriceinformationforpackagedmeatsandotherfoods.Self-adhesivematerialsprovide consistentandversatileadhesionandareavailableinalargeselectionofmaterials,whichcanbemadeintolabelsof varyingsizesandshapes.

Ourgraphicsandreflectiveproductsincludeavarietyoffilmsandotherproductsthataresoldtothearchitectural, commercialsign,digitalprintingandotherrelatedmarketsegments.Wealsoselldurablecastandreflectivefilmstothe construction,automotiveandfleettransportationmarketsegmentsandreflectivefilmsfortrafficandsafetyapplications. Weprovidesignshops,commercialprintersanddesignersabroadrangeofpressure-sensitivematerialsthatallowthem tocreateimpactfulandinformativebrandanddecorativegraphics.Weofferawidearrayofpressure-sensitivevinyland specialtymaterialsdesignedfordigitalimaging,screenprintingandsigncuttingapplications.

OurperformancetapesproductsincludeavarietyofFasson®-brandandAveryDennison®-brandtapesandother pressure-sensitiveadhesive-basedmaterialsandconvertedproducts,mechanicalfastenersandperformancepolymers. Ourpressure-sensitiveadhesive-basedmaterialsareavailableinrollformandinawiderangeoffacematerials,sizes, thicknessesandadhesiveproperties.Thesematerialsandconvertedproductsareusedinnon-mechanicalfastening, bondingandsealingsystemsforvariousautomotive,electronics,buildingandconstruction,generalindustrial,personal care,andmedicalapplications.Themechanicalfastenersareprimarilyprecision-extrudedandinjection-moldedplastic devicesusedinvariousautomotive,generalindustrialandretailapplications.

OurlargercompetitorsinlabelmaterialsincludeUPMRaflatac,asubsidiaryofUPMCorporation;FedrigoniSelfAdhesives;LintecCorporation;FlexconCorporation,Inc.;andanarrayofsmallerregionalandlocalcompanies.For graphicsandreflectiveproducts,ourlargestcompetitorsare3MCompany(“3M”)andtheOrafolGroup.Forperformance tapesproducts,ourcompetitorsinclude3M;Tesa-SE,asubsidiaryofBeiersdorfAG;NittoDenkoCorporation;and numerousregionalandspecialtysuppliers.Forfastenerproducts,thereareavarietyofcompetitorssupplyingextruded andinjectionmoldedfastenersandfastenerattachingequipment.Webelievethatentryofcompetitorsintothefieldof pressure-sensitiveadhesivesandmaterialsislimitedbytechnicalknowledgeandcapitalrequirements.Webelievethat ourtechnicalexpertise,sizeandscaleofoperations,broadlineofqualityproducts,reliableservice,productandprocess innovation,distributioncapabilitiesandbrandstrengtharetheprimaryadvantagesinmaintainingandfurtherdeveloping ourcompetitiveposition.

SolutionsGroup

OurSolutionsGroupisaleadingproviderofinformationandbrandingsolutionsthatcoverworldwidemarketplace needsrangingfromdigitalidentificationanddatamanagementtobrandingandembellishment,productivity,pricingand retailmedia.Asalargeultra-high-frequencyRFIDsolutionsprovider,weempowercustomersacrossmultipleretailand industrysegments,includingapparel,logistics,foodandgroceryandgeneralretail,toconnectthephysicalanddigital worldsbyenablingadigitalidentityandlifeonphysicalitems.Ourinnovationanddatamanagementcapabilities,global footprintandmarketaccesscontinuouslyexpandoursolutionsplatform.

ThebrandingsolutionsoftheSolutionsGroupincludebrandembellishments,graphictickets,tags,andlabels,and sustainablepackaging.SolutionsGroup’sinformationsolutionsincludeitem-levelRFIDsolutions;visibilityandloss preventionsolutions;priceticketingandmarking;care,content,andcountryoforigincompliancesolutions;brand protectionandsecuritysolutions;andVestcom®-brandshelf-edgeproductivityandmediasolutions.

IntheSolutionsGroup,ourprimarycompetitorsincludeCheckpointSystems,Inc.,asubsidiaryofCCLIndustries Inc.;R-pacInternationalCorporation;SMLGroupLimited;ArizonRFIDTechnologyCaymanCoLtd;andTageos,a AveryDennisonCorporation | 2024AnnualReport 3

subsidiaryofFedrigoniGroup.Webelievethatourproduct,processandsolutioninnovation,globaldistributionnetwork, reliableservice,productqualityandconsistency,andabilitytoservecustomersconsistentlywithcomprehensivesolutions closetowheretheymanufacture,sourceandsellarethekeyadvantagesinmaintainingandfurtherdevelopingour competitiveposition.

Research,DevelopmentandInnovation

Asagloballeaderinmaterialsscience,weinnovatetodevelopandintroducenewproductsandsolutionsthathelp customerssolvesomeofthemostcomplexproblemsintheindustriesweserve.Ourvisionistoleveragethestrengthsof ourMaterialsandSolutionsgroupstocontinuetodrivegrowthwithinthesebusinessesandleadattheintersectionofthe physicalanddigitalworlds.Ourdecadesofexperiencecreatingsolutionsforcustomersandourcorecapabilitiesin materialsscience,engineeringandprocesstechnologyenableustodrivecontinuousinnovationthroughoutour industries.Ourinnovationeffortsfocusonanticipatingmarketandcustomerchallengesandopportunities,andapplying technologytoaddressthem.Ourinvestmentininnovationaimstoaccelerategrowthbydevelopingnewproductsand solutions,expandmarginsthroughmaterialre-engineering,andenablecustomersuccessbyleveragingscalable innovationplatformsanddeliveringsustainabilityinitiativesandadvancedtechnologies.

Manyofournewproductsresultfromourresearchanddevelopmentefforts.Theseeffortsaredirectedprimarily towarddevelopingproducts,solutionsandoperatingtechniquesandimprovingproductivity,sustainabilityandproduct performance,oftenincloseassociationwithourcustomersorendusers.Theseeffortsprovideintellectualpropertythat leveragesourresearchanddevelopmentrelatingtomaterialsscience,suchasadhesives,films,inksandreleaseliners, andprocessengineeringtechnology,suchascoating,laminatingandprintingtechnologiesinMaterialsGroup.Wefocus onresearchprojectsrelatedtoRFID,externalembellishments,dataanddigitalsolutionsandprintingtechnologiesin SolutionsGroup,ineachcaseforwhichwehaveandlicenseanumberofpatents.Additionally,ourresearchand developmenteffortsincludesustainableinnovationanddesignofproductsthatadvancethecirculareconomy,reduce materialsandwaste,userecycledcontent,andextendproductend-of-lifeorenableproductrecycling.

AcquisitionsandVentureInvestments

Inadditiontoourinvestmentstosupportorganicgrowth,wehavepursuedcomplementaryandsynergistic acquisitions.In2023,weacquiredSilverCrystalGroup(“SilverCrystal”),aCanada-basedproviderofsportsapparel customizationandapplicationsolutionsacrossin-venue,direct-to-businessande-commerceplatforms;LGGroup,Inc. (“LionBrothers”),aMaryland-baseddesignerandmanufacturerofapparelbrandembellishments;andThermopatch,Inc. (“Thermopatch”),aNewYork-basedmanufacturerspecializinginlabeling,embellishmentsandtransfersforthesports, industriallaundry,workwearandhospitalityindustries.Theaggregatepurchaseconsiderationfortheseacquisitionswas approximately$231million.During2024,wealsomadeventureinvestmentsinthreecompaniesdeveloping technologicalsolutionsthatwebelievehavethepotentialtoadvanceourbusinesses.Forinformationregardingour acquisitions,seeNote2,“BusinessAcquisitions,”intheNotestoConsolidatedFinancialStatements.Forinformation regardingourventureinvestments,seeNote9,“FairValueMeasurements,”intheNotestoConsolidatedFinancial Statements.

Patents,TrademarksandLicenses

Thelossofindividualpatentsorlicenseswouldnotbematerialtoustakenasawhole,nortoouroperating segmentsindividually.OurprincipaltrademarksareAveryDennison,ourlogo,andFasson.Webelievethesetrademarks arestronginthemarketsegmentsinwhichweoperate.

HumanCapitalResources

OurGlobalWorkforce

Withapproximately70%ofour2024netsalesoriginatingoutsidetheU.S.andapproximately40%ofournet salesoriginatinginemergingmarkets(LatinAmerica,EasternEurope,MiddleEast/NorthernAfrica,andmostcountriesin AsiaPacific),ouremployeesarelocatedinmorethan50countriestobestserveourcustomers.Approximately83%of ouremployeesatyear-end2024werelocatedoutsidetheU.S.andapproximately66%werelocatedinemerging markets.

Thechartsbelowshowourglobalemployeepopulationbyregionandoperationalfunction.Over19,000ofour approximately35,000employeesatyear-end2024,representingapproximately58%ofourglobalworkforce,werein AsiaPacific,servingourcustomersinthatregion.Atthattime,approximately65%ofourglobalworkforceworkedinthe operationsofourmanufacturingfacilitiesorinpositionsdirectlysupportingthemfromotherlocations.

Attracting,developingandretaininghighly-skilledtalentiscriticaltoourabilitytocontinuedeliveringsustainable growth.Weprovideongoingsupportandprofessionaldevelopmentresourcestoourteammembersworldwidetoensure thattheirskillsevolvewithourbusinessneeds,industrytrendsandhumancapitalmanagementbestpractices,aswellas enableincreasedproductivity,peakperformanceandcareergrowth.Wehaverobusttalentreviewandsuccession planningprocessesthatprovideindividuallytargeteddevelopmentopportunitiesforourteammembers.Weemphasize on-the-jobdevelopmentandcoaching,andalsoprovidefacilitator-ledanddirect-accessonlinetraining,leadership opportunitiestoexecutespecialprojectsand,insomecases,cross-functional,cross-regional,orcross-divisionalwork assignments.In2024,weintroducedanenterprise-widecompetencymodelthatprovidestransparencyandclarity aroundwhatweexpectfromourleaders,whichwillserveasthego-forwardfoundationofallofourtalentpractices,from talentselectionandretentiontoindividualandcareerdevelopmenttosuccession.

Compensation&Benefits

Ourtotalrewardsphilosophyistooffermarket-based,competitivewagesandbenefitsinthemarketswherewe competefortalent.Allofouremployeeswerepaidatleasttheapplicablelegalminimumwage,andover99%ofour employeeswerepaidabovetheapplicablelegalminimumwage,atyear-end2024.Payisgenerallypositionedaround themarketmedian,withvariancesbasedonknowledge,skills,yearsofexperienceandinlinewithourpayfor performancephilosophy.Inadditiontobasewages,ourcompensationandbenefitprograms—whichvarybyregion, countryandbusinessunit—includeshort-termincentives(generallypaidincash),long-termincentives(e.g.,cash-or stock-basedawards),employeebenefitandretirementplans,healthcareandinsurancebenefits,healthsavingsand flexiblespendingaccounts,paidtimeoff,leaveofabsenceandemployeeassistanceprograms.Weoffertheopportunity forflexibleworkarrangementsformostofouroffice-basedworkforcetoprovidethemwithgreaterflexibilitytobalance theirworkandpersonalcommitments,whileensuringthatwemeettheneedsofourbusiness.Ourinformation technologyinfrastructure,informationsecurityprotocolsanddigitaltoolssupportemployeeefficiencyandeffectiveness wherevertheywork.

Payequityisanimportantpartofourglobalpayplanningandpractices.Eachyear,weengageanindependent thirdpartytoevaluatepayequity,makingmerit-basedpayadjustmentswhereappropriate.In2024,wereviewedpay equity(consideringtotalbase,annualincentivesandlong-termincentives)withrespecttogenderfor93%ofourglobal employeepopulation,andwithrespecttogenderandrace/ethnicityforallU.S.employees.Wecontinuetoenhanceour managereducation,toolsandprocessestoprovidefairandequitablepay.

EmployeeEngagement

Becausewebelievethatanengagedworkforcepromotesretentionandminimizesemployeeturnover,weannually conductaglobalemployeeengagementsurvey.Withafocusoncontinuousimprovement,in2023welaunchedour AveryDennisonCorporation | 2024AnnualReport 5

surveyusingamoreadvancedplatformprovidingreal-timeaccesstoresults,improvedanalyticsandabilitytoconnect datathroughouttheemployeeexperience,moremeaningfulcomparisonstoexternalbenchmarks,andongoingpulse surveycapability.Wedeployedthissameplatformin2024,enablingyear-over-yearcomparabilityofresults.Our businessandfunctionalteamsusetheanonymizedresultsofoursurveytoidentifyandimplementactionstoaddress potentialopportunitiesforimprovement.Whileemployeeengagementistheresultofmanyfactors,webelievestrong, encouragingandopenleadership,aswellasacontinuedefforttofosteracollaborative,supportiveculture,leadsto strongworkforceengagement.

WorkforceHealth&Safety

Safetyisoneofourhighestpriorities,andwecontinuallyworktoensureourmanufacturingfacilities,distribution centersandadministrativeofficesfocusonsafety,sothatanyoneworkinginorvisitingoneofourlocationsfeelsand remainssafefrominjury.OurglobalRecordableIncidentRateof0.21in2024wassignificantlylowerthanthe OccupationalSafetyandHealthAdministrationmanufacturingindustryaverageof2.8in2023(themostrecentavailable industryaverage).

WorkplaceCulture

Weaimtofosteranenvironmentwhereouremployeeswithvariousskills,experiencesandbackgroundscangrow andbeincreasinglyproductiveandinnovative,allowingustobenefitfromahighlyengagedteamandattractandretain talentforthebenefitofourstakeholders.Ourglobalpeople-focusedstrategicpillarsincludeenhancingtheexperienceof ourmanufacturingemployeesandmakingmeritandtransparencyevenmorefoundationaltoouremployeeexperience. Wehaveaglobalteamthathelpsadvancetheseprioritiesincoordinationwithregionalcouncilsandouremployee resourcegroups,whichareopentoallourteammembersandprovideindividualswithsharedinterestsaforuminwhich toidentifywaysinwhichwecanimproveouremployeeexperience.

ManufacturingandEnvironmentalMatters

Weusevariousrawmaterials–primarilypaper,plasticfilmsandresins,aswellasspecialtychemicalspurchased fromvariouscommercialandindustrialsources–thataresubjecttopricefluctuations.Althoughshortagescanoccurfrom timetotime,theserawmaterialsaregenerallyavailable.

Weproduceamajorityofourself-adhesivematerialsusingwater-basedemulsionandhot-meltadhesive technologies.Aportionofourmanufacturingprocessforself-adhesivematerialsutilizesorganicsolvents,which,unless controlled,couldbeemittedintotheatmosphereorcontaminatesoilorgroundwater.Emissionsfromtheseoperations containsmallamountsofvolatileorganiccompounds,whichareregulatedbyfederal,state,localandforeign governments.Wecontinuetoevaluatetheuseofalternativematerialsandtechnologiestominimizetheseemissions.In connectionwiththemaintenanceandacquisitionofcertainmanufacturingequipment,weinvestinsolventcaptureand controlunitstoassistinregulatingtheseemissions.

Wehavedevelopedadhesivesandadhesiveprocessingsystemsthatminimizetheuseofsolvents.Emulsion adhesives,hot-meltadhesives,andsolventlessandemulsionsiliconesystemshavebeeninstalledinmanyofourfacilities.

Basedoncurrentinformation,wedonotbelievethatthecostofcomplyingwithapplicablelawsregulatingthe emissionordischargeofmaterialsintotheenvironment,orotherwiserelatingtotheprotectionoftheenvironment,will haveamaterialeffectuponourcapitalexpenditures,consolidatedfinancialposition,resultsofoperationsorcompetitive position.

Forinformationregardingourpotentialresponsibilityforcleanupcostsatcertainhazardouswastesites,see Note8,“Contingencies,”intheNotestoConsolidatedFinancialStatements.

AvailableInformation

OurAnnualReportsonForm10-K,QuarterlyReportsonForm10-Q,CurrentReportsonForm8-Kand amendmentstothosereportsfiledwith,orfurnishedto,theSecuritiesandExchangeCommission(“SEC”)pursuantto Section13(a)or15(d)oftheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”),areavailablefreeof chargeonourinvestorwebsiteatwww.investors.averydennison.comassoonasreasonablypracticableaftertheyare electronicallyfiledwithorfurnishedtotheSEC.Thiswebsiteaddressisnotintendedtofunctionasahyperlinkandthe informationlocatedthereisnot,norshoulditbeconsidered,partofthisreportorincorporatedbyreferenceintothis report.Wealsomakeavailableontheinvestorssectionofourwebsiteunder“GovernanceDocuments”thefollowing 6 2024AnnualReport | AveryDennisonCorporation

documentsascurrentlyineffect:(i)AmendedandRestatedCertificateofIncorporation,asamended;(ii)Amendedand RestatedBylaws;(iii)CorporateGovernanceGuidelines;(iv)CodeofConduct,whichappliestoourdirectors,officersand employees;(v)CodeofEthicsforourChiefExecutiveOfficerandSeniorFinancialOfficers;(vi)chartersoftheAudit, TalentandCompensation,GovernanceandFinanceCommitteesofourBoardofDirectors;and(vii)AuditCommittee ComplaintProceduresforAccountingandAuditingMatters.Thesedocumentsarealsoavailablefreeofchargeupon writtenrequesttoourCorporateSecretary,AveryDennisonCorporation,8080NortonParkway,Mentor,Ohio44060.

ReportsfiledwithorfurnishedtotheSECmaybeviewedatwww.sec.gov.

Item1A.RISKFACTORS

Theriskfactorsdescribedinthissectioncouldmateriallyadverselyaffectourbusiness,includingourresultsof operations,cashflowsandfinancialcondition,andcausethevalueofoursecuritiestodecline.Thislistofrisksisnot exhaustive.Ourabilitytoattainourgoalsandobjectivesisdependentonnumerousfactorsandrisks,including,butnot limitedto,themostsignificantonesdescribedinthissection.

RiskRelatedtoOurInternationalOperations

Thedemandforourproductsisimpactedbytheeffectsof,andchangesin,worldwideeconomic,social,geopolitical andmarketconditions,whichhavehadinthepastandcouldinthefuturehaveamaterialadverseeffectonour business.

Wehaveoperationsinmorethan50countriesandourdomesticandinternationaloperationsarestrongly influencedbymattersbeyondourcontrol,includingchangesingeopolitical,social,economicandlaborconditions,tax laws,andU.S.andinternationaltraderegulations(includingtariffs),aswellastheimpactthesechangeshaveondemand forourproducts.In2024,approximately70%ofournetsaleswereproducedininternationaloperations.

Macroeconomicdevelopmentssuchasimpactsfromslowergrowthinthegeographicregionsinwhichwe operate;inflation,resultingfrom,amongotherthings,increasedrawmaterial,energy,andfreightcosts;laborshortages; geopolitical,social,supplychainandotherdisruptions;epidemics,pandemicsorotheroutbreaksofillness,diseaseor virus;anduncertaintyintheglobalcreditorfinancialmarketscouldresultinamaterialadverseeffectonourbusinessasa resultof,amongotherthings,lowerconsumerspending,fluctuationsinforeigncurrencyexchangerates,reducedasset valuations,diminishedliquidityandcreditavailability,volatilityinsecuritiesprices,andcreditratingdowngrades.

TensionsremainintraderelationsbetweentheU.S.andcertainotherregionsandcountries,includingCanada,Mexico, China,IndiaandtheEuropeanUnion.TheU.S.recentlyannouncedintentionstoimposeasignificanttariffoncertaingoods fromCanadaandMexicoandasmallertariffoncertaingoodsfromChina.Eachofthesecountriesannouncedthattheywould imposereciprocaltariffs,withCanadaandMexicoeachagreeinguponcertainconcessionswiththeU.S.totemporarilydelay themutualimpositionoftariffs.ThetariffoncertaingoodsfromChinahasgoneintoeffect,withChinaimposingreciprocal tariffs,andtheamountofthesetariffsortheclassesofgoodsonwhichtheyareimposedcouldsignificantlyincrease.TheU.S. hasalsoindicatedthatitmayimposereciprocaltariffsongoodsfromothercountriesorregions.Whiletheimpactsonour operationstodatehavenotbeensignificant,ourbusinesscouldbemateriallyadverselyimpactedbychangesinU.S.and non-U.S.tradepolicies,includingpotentialmodificationstoexistingtradeagreementsandadditionaltariffsorrestrictionson freetrade,impactingourrawmaterialsorfinishedproducts.Theseactionsorotherdevelopmentsininternationaltrade relationscouldhaveamaterialadverseeffectonourbusiness.

Inaddition,businessandoperationaldisruptionsordelayscausedbygeopolitical,socialoreconomicinstabilityand unrest–suchasrecentcivil,politicalandeconomicdisturbancesinArgentina,Afghanistan,Syria,Iraq,Yemen,Iran,Turkey, NorthKorea,andBangladeshandtherelatedimpactonglobalstability,theRussia-Ukrainewar,theIsrael-Hamaswar, terroristattacksandthepotentialforotherhostilitiesornaturaldisastersinvariouspartsoftheworld–couldcontributetoa climateofeconomicandgeopoliticaluncertaintythatcouldhaveamaterialadverseeffectonourbusiness.SincetheRussiaUkrainewarbeganinFebruary2022,wehavemaintainedourpositionofnotshippingproductsfortheRussianmarket.The impactofthecontinuingwar,aswellasanyfurtherretaliatoryactionstakenbyRussia,theU.S.,theEuropeanUnionandother jurisdictions,isunknownandcouldhaveamaterialadverseeffectonourbusiness.Inaddition,sincethebeginningofthe Israel-Hamaswarinlate2023;oursalesinIsraelhavedeclined,withsalesrepresentinglessthan1%ofourtotalnetsalesin 2024.Wehaveexperiencedsomedisruptionsinouroperations inIsraelandtheMiddleEastandimplementedplansto addressthesedisruptions,aswellastheimpactsthereofinGaza,LebanonandotherareasoftheMiddleEast,whilefocusing onthecontinuedsafetyofourIsraeliemployeesandtheirfamilies.Thecontinuedimpactofthiswarandanyrelatedhostilities intheMiddleEastregionorelsewhereisunknownandcouldhaveamaterialadverseeffectonourbusiness. AveryDennisonCorporation | 2024AnnualReport 7

Wearenotabletopredictthedurationandseverityofadverseeconomic,social,geopoliticalormarketconditions intheU.S.orothercountries.

Foreigncurrencyexchangerates,andfluctuationsinthoserates,affectourbusiness.

Themajorityofournetsalesin2024wasdenominatedinforeigncurrencies.Ourfinancialresultsaretherefore subjecttotheimpactofcurrencytranslation,whichmaybematerial.Overall,ourforeigncurrencytransactionexposureis largelymitigatedbecausethecostsofourproductsaregenerallydenominatedinthesamecurrenciesinwhichtheyare sold.

Fluctuationsincurrencyexchangerates,suchastheunfavorableimpactsassociatedwiththeArgentinepeso, Chineserenminbiandeuroin2024,mayresultinavarietyofnegativeeffects,includinglowernetsales,increasedcosts, lowergrossmargins,increasedallowanceforcreditlossesand/orwrite-offsofaccountsreceivable,andrequired recognitionofimpairmentsofcapitalizedassets,includinggoodwillandotherintangibleassets.Foreigncurrency translationdecreasedour2024netsalesbyapproximately$33millioncomparedtotheprioryear.

Wemonitorourforeigncurrencyexposuresandsometimesusehedginginstrumentstomitigatesomeofour transactionalexposuretochangesinforeigncurrencies.Theeffectivenessofourhedgesinpartdependsonourabilityto accuratelyforecastourfuturecashflows,whichisparticularlydifficultduringperiodsofuncertaindemandforour productsandservicesandvolatileforeigncurrencyexchangerates.Ourhedgingactivitiesmayoffsetonlyaportion,or noneatall,ofthematerialadversefinancialeffectsofunfavorablemovementsinforeigncurrencyexchangeratesover thelimitedtimethehedgesareinplaceandwemayincursignificantlossesfromtheseactivities.

Ourstrategyincludescontinuingtogrowinemergingmarkets,whichcreatesgreaterexposuretounstable geopoliticalconditions,civilunrest,economicvolatility,andotherrisksapplicabletooperatingintheseregions.

Approximately40%ofournetsalesin2024originatedinemergingmarkets,whichincludescountriesinAsia Pacific,LatinAmerica,EasternEuropeandMiddleEast/NorthernAfrica.Theprofitablegrowthofourbusinessin emergingmarketsisanimportantpartofourlong-termgrowthstrategyandourregionalresultshaveandcanfluctuate significantlybasedontheireconomicconditions.Ourbusinessoperationshavebeenandmaycontinuetobeadversely affectedbythecurrentandfuturepoliticalenvironmentinChina,bothrelatingtoin-countrychangesinlawsand regulationsortheinterpretationthereof,aswellasaresultofitsresponsetotariffsimposedbytheU.S.governmenton goodsimportedfromChina,tariffsimposedbyChinaonU.S.goods,theincreasinguseofeconomicsanctionsandexport controlrestrictions,andtensionsrelatedtoHongKongandTaiwan.

Ifweareunabletosuccessfullyexpandourbusinessinemergingmarketsorachievethereturnoncapitalwe expectfromourinvestmentsinthesecountries,ourfinancialperformancewouldbemateriallyadverselyaffected.In additiontotherisksapplicabletoourinternationaloperations,factorsthathavenegativelyimpactedouroperationsin theseemergingmarketsfromtimetotimeincludethelessestablishedorreliablelegalsystemsandpossibledisruptions duetounstablegeopoliticalconditions,civilunrestoreconomicvolatility.Thesefactorscanhaveamaterialadverseeffect onourbusinessintheaffectedmarketsbydecreasingconsumerpurchasingpower,reducingdemandforourproductsor increasingourcosts.

OuroperationsandactivitiesoutsideoftheU.S.subjectustorisksdifferentfromandpotentiallygreaterthanthose associatedwithourdomesticoperations.

AsubstantialportionofouremployeesandassetsarelocatedoutsideoftheU.S.and,in2024,approximately70% ofoursaleswasgeneratedoutsideoftheU.S.Internationaloperationsandactivitiesinvolverisksthataredifferentfrom andpotentiallygreaterthantheriskswefaceinourdomesticoperations,includingchangesinforeigngeopolitical, regulatoryandeconomicconditions,whethernationally,regionallyorlocally;changesinforeigncurrencyexchangerates; differinglevelsofinflation;reducedprotectionofintellectualpropertyrights;lawsandregulationsimpactingourabilityto repatriateforeignearnings;challengescomplyingwithforeignlawsandregulations,includingthoserelatingtosales, operations,taxes,employmentandlegalproceedings;establishingeffectivecontrolsandprocedurestomonitor compliancewithU.S.lawsandregulationssuchastheForeignCorruptPracticesActandsimilarforeignlawsand regulations,suchastheUK’sBriberyActof2010;differencesinlendingpractices;andchallengeswithcomplyingwith applicableexportandimportcontrollawsandregulations.

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RisksRelatedtoOurBusiness

Asamanufacturer,oursalesandprofitabilitydependupontheavailabilityandcostofrawmaterialsandenergy, whichmaybesubjecttosignificantpricefluctuations,andourabilitytocontroloroffsetincreasesinrawmaterial andlaborcosts.Rawmaterialandfreightcostincreaseshaveimpactedourbusiness.

Rawmaterialsrepresentasignificantportionofourcostsandacriticalelementofourprofitability.Themarketsfor therawmaterialsusedinourbusinessesarechallengingandcanbevolatile,impactingavailabilityandpricing. Additionally,energycostscanbevolatileandunpredictable.Shortagesandinflationaryorotherincreasesinthecostsof rawmaterials,labor,freightandenergyhaveoccurredinthepast,andcouldrecur.In2021and2022,weimplemented targetedpriceincreasesinourMaterialsGroupreportablesegmenttoaddressrawmaterialinflation,whichbegan moderatingin2023andlargelystabilizedin2024.Ifweexperienceinflationaryheadwindsinthefuture,wemay implementsimilarpricingmeasures.Ourperformancedependsinpartonourabilitytooffsetincreasedrawmaterialcosts byraisingoursellingpricesorre-engineeringourproducts.

Itisalsoimportantforustoobtaintimelydeliveryofmaterials,equipment,andotherresourcesfromsuppliers,and tomaketimelydeliverytocustomers.Wemayexperiencesupplychaindisruptionsduetonaturalandotherdisastersor otherevents,orourexistingrelationshipswithsupplierscoulddeteriorateorendinthefuture.Whileweundertake businesscontinuityplanningandtakeactionstomitigatethesedisruptionswhentheyoccur,suchassourcingfromother regionsorsuppliers,anydisruptioninoursupplychaincouldhaveamaterialadverseeffectonoursalesandprofitability, andanysustainedinabilitytoobtainadequatesuppliescouldhaveamaterialadverseeffectonourbusiness.

Weareaffectedbychangesinourmarketsduetocompetitiveconditions,technologicaldevelopments,lawsand regulations,andcustomerpreferences.Ifwedonotcompeteeffectivelyorrespondappropriatelytothesechanges,it couldreducedemandforourproductsandsolutions,orwecouldlosemarketshareorreduceoursellingpricesto maintainmarketshare,anyofwhichcouldmateriallyadverselyaffectourbusiness.

Growingtheproportionofourportfolioinhigh-valuecategoriesthatservemarketsthataregrowingfasterthan grossdomesticproduct,representlargepoolsofpotentialprofitandleverageourcorecapabilitiesisanimportantpartof ourlong-termgrowthstrategy.High-valueproductsandsolutionsincludeourspecialtyanddurablelabelmaterials, graphicsandreflectivesolutions,andindustrialtapes;intelligentlabelsthatuseRFIDtagsandinlays;shelf-edgepricing, productivityandconsumerengagementsolutions;andexternalembellishments.Wefacetheriskthatexistingornew competitors,whichincludesomeofourcustomers,distributors,andsuppliers,willexpandinourkeymarketsegmentsor developnewtechnologies,includinginhigh-valuecategories,enhancingtheircompetitivepositionrelativetoours. Competitorsalsomaybeabletoofferproducts,services,lowerpricesorotherincentivesthatwecannotorthat,to maintainprofitability,wemaynotbeabletooffer.Therecanbenoassurancethatwewillbeabletocompetesuccessfully againstcurrentorfuturecompetitorsornewtechnologies.

Wearealsoexposedtochangesincustomerorderpatterns,suchaschangesinthelevelsofinventorymaintained bycustomersandthetimingofcustomerpurchases,whichareaffectedbyannouncedpriceincreases,changesinour customerincentiveprograms,orchangesinthecustomer’sabilitytoachieveincentivetargets.Changesincustomers’ preferencesforourproductscanalsodecreasedemandforourproductsandhaveamaterialadverseeffectonour business.InourMaterialsGroupreportablesegment,assupplychainconstraintseasedin2022,customersincreased inventorylevelsfollowingaperiodofreducedavailability.Inthefourthquarterof2022,inventoriesdownstreamfromour companybegantounwindswiftly,resultinginlowerdemand.Thiscontinuedin2023,withvolumeimproving sequentiallythroughoutthatyearandnormalizingin2024.

Weareaffectedbychangesinourmarketsduetoincreasingenvironmentalregulationsandsustainabilitytrends.If wedonotrespondappropriatelytothesechanges,itcouldnegativelyimpactmarketdemand,ourmarketshareand pricing,anyofwhichcouldmateriallyadverselyaffectourbusiness.Adverseweatherconditionsandnatural disasters,includingthoserelatedtotheimpactsofclimatechange,adverselyaffectourbusiness.

Asubstantialamountofourlabelmaterialissoldforuseinplasticpackaginginthefood,beverage,andhomeand personalcaremarketsegments.Inrecentyears,therehasbeenanacceleratedfocusonsustainabilityandtransparencyin sustainabilityreporting,withgreaterconcernregardingclimatechangeandsingle-useplastics,corporatecommitments andincreasingstakeholderexpectationsregardingthereuseandrecyclabilityofplasticpackagingandrecycledcontent, andincreasedregulationinmultiplegeographiesregardingthecollection,recyclinganduseofrecycledcontent.Changes AveryDennisonCorporation | 2024AnnualReport 9

inconsumerpreferencesandlawsandregulationsrelatedtotheuseofplastics,particularlyinEuropeandcertainstates intheUnitedStates,presentstheriskofreduceddemandforcertainofourproductsifcustomersseekdecoration technologyalternativestopressure-sensitivelabeling,butalsotheopportunityforincreaseddemandforourmore sustainableproducts,asignificantfocusofourresearchanddevelopmentandrelatedinnovationefforts.Wehave establishedstrategicinnovationplatformsandprioritiesfocused,amongotherthings,ondeliveringproductsand solutionsthatadvancethecirculareconomy,reducesupplychainwasteandaddresstheneedforincreasedrecyclability ofplasticpackaging.Wehavemadesubstantialinvestmentsinoursustainability-drivenproducts,buttherecanbeno assurancethattheywillbesuccessful,andasignificantreductionintheuseofplasticpackagingcouldmaterially adverselyaffectdemandforourproducts.

Continuedgrowthinsustainability-focusedregulationpresentsanincreasingrisktoourbusiness.Reporting requirementssuchastheCorporateSustainabilityReportingDirectiveandtheCorporateSustainabilityDueDiligence DirectiveinEuropeandthestateofCalifornia’sclimatereportingrequirementsareincreasingtheamountofsustainability disclosureswearerequiredtomake,aswellasrequiringtheauditofagreateramountofoursustainabilitydata.Coststo complywiththeseregulationswillcontinuetogrowandanyfailuretomeettherequirementsoftheseregulationscould resultinfinesorotherpenalties.Aspartofoureffortstomitigatetheimpactsofclimatechangeonourbusiness,we engagedathirdpartytohelpusassessourphysicalandtransitionalriskrelativetotherecommendationsoftheFinancial StabilityBoard’sTaskForceonClimate-RelatedFinancialDisclosures.

Thescientificconsensusisthatemissionsofgreenhousegases(“GHG”)arealteringouratmosphereinwaysthat areadverselyaffectingglobalclimate.Thereiscontinuingconcernfrommembersofthescientificcommunityandthe generalpublicthatGHGemissionsandotherhumanactivitieswillcontinuecausingsignificantchangesinweather patternsandincreasethefrequencyorseverityofextremeweatherevents,includingdroughts,wildfiresandflooding. Thesetypesofextremeweathereventshaveandmaycontinuetoadverselyimpactus,oursuppliersandourcustomers, includingtheirabilitytopurchaseourproductsandourabilitytotimelyreceiveappropriaterawmaterialstomanufacture andtransportourproductsonatimelybasis.Concernregardingclimatechangehasledandislikelytocontinueleadingto increasingdemandsbylegislatorsandregulators,customers,consumers,investors,employeesandnon-governmental organizationsforcompaniestoreducetheirGHGemissions.Oneofour2025sustainabilitygoalsistoachieveatleasta 3%absolutereductioninourGHGemissionsyear-over-yearandatleasta26%absolutereductioncomparedtoour 2015baselineby2025;wehavealreadyexceededthecumulative2025GHGemissionsreductiongoal.Aspartofour moreambitious2030sustainabilitygoals,weareaimingby2030toreduceourScope1and2GHGemissionsby70% comparedtoour2015baselineandworkwithoursupplychaintoreduceScope3GHGemissions.Wecouldfacerisksto ourreputation,investorconfidenceandmarketshareifweareunabletocontinuereducingourGHGemissionsatlevels satisfactorytoourstakeholders.

Increasedrawmaterialcosts,suchasforfuelandelectricity,andcompliance-relatedcostscouldalsoimpact customerdemandforourproducts.Theextentoftheimpactofclimatechangeonourbusinessisuncertain,asitwill dependonthelimitsimposedby,andtimingof,neworstricterlawsandregulations,morestringentenvironmental standardsandexpectations,andevolvingcustomerandconsumerpreferences,butitislikelytoincreaseourcostsand couldhaveamaterialadverseeffectonourbusiness.

Wehaverecentlyacquiredcompaniesandarelikelytoacquireothercompanies.Acquisitionscomewithsignificant risksanduncertainties,includingthoserelatedtointegration,technologyandemployees.

Todriveourstrategiestoincreasetheproportionofourbusinessfromhigh-valuecategories,enhanceourportfolio bygrowingourexistingbusinessesandexpandingintonewareas,andacceleratemarket-driveninnovation,wehave madeacquisitionsandarelikelytocontinueacquiringcompanies.Althoughwemadenoacquisitionsin2024,in2023, weacquiredSilverCrystal,LionBrothersandThermopatchforaggregatepurchaseconsiderationofapproximately $231million.Thesuccessofanyacquisitiondependsontheabilityofthecombinedcompanytorealizetheanticipated benefitsfromcombiningourbusinesses.Realizingthesebenefitsdepends,inpart,onmaintainingadequatefocuson executingthebusinessstrategiesofthecombinedcompanyaswellasthesuccessfulintegrationofassets,operations, functionsandpersonnel.Wecontinuetoevaluateacquisitiontargetsandensurewehaveapipelineofpotential opportunities.

Variousrisks,uncertaintiesandcostsareassociatedwithacquisitions.Effectiveintegrationofsystems,controls, employees,productlines,marketsegments,customers,suppliersandproductionfacilitiesandcostsavingscanbe difficulttoachieveandthesuccessofintegrationactivitiescanbeuncertain.Whilewehavenotexperiencedsignificant 10 2024AnnualReport | AveryDennisonCorporation

issueswithourrecentacquisitions,ifmanagementofourcombinedcompanyisunabletominimizethepotential disruptionofthecombinedcompany’songoingbusinessduringtheintegrationprocess,theanticipatedbenefitsofany acquisitionmaynotbefullyrealized.Inaddition,theinabilitytosuccessfullymanagetheimplementationofappropriate systems,policies,benefitsandcomplianceprogramsforthecombinedcompanycouldhaveamaterialadverseeffecton ourbusiness.Wemaynotbeabletoretainkeyemployeesofanacquiredcompanyorachievetheprojectedperformance targetsforthebusinessintowhichanacquiredcompanyisintegrated.Bothbeforeandaftertheclosingofanacquisition, ourbusinessandthatoftheacquiredcompanymaysufferduetouncertaintyordiversionofmanagementattention. Futureacquisitionscouldresultinincreaseddebt,dilution,liabilities,interestexpense,restructuringchargesand amortizationexpensesrelatedtointangibleassets.Therecanbenoassurancethatacquisitionswillbesuccessful, contributetoourprofitabilityordriveaccretivereturns.Further,wemaynotbeabletoidentifyadditionalvalue-accretive acquisitiontargetsthatcanadvanceourstrategiesorbeabletosuccessfullyexecuteadditionalacquisitionsinthefuture.

Asignificantconsolidationofourcustomerbasecouldnegativelyimpactourbusiness.

Asignificantconsolidationofourcustomerbasecouldnegativelyimpactourbusiness.Whileourcustomerbase tendstobehighlyfragmented,inrecentyears,someoftheconvertercustomersservedbyourMaterialsGroupreportable segmenthaveconsolidatedandintegratedverticallyandsomeofourlargestcustomershaveacquiredcompanieswith similarorcomplementaryproductlines.Industryconsolidationcouldcontinuetoincreasetheconcentrationofour businesswithourlargestcustomers.Furtherconsolidationmaybeaccompaniedbypressurefromcustomersforusto loweroursellingprices.Whilewehavebeengenerallysuccessfulatmanagingcustomerconsolidationsinthepast, increasedpricingpressuresfromourcustomerscouldhaveamaterialadverseeffectonourbusiness.

Becausesomeofourproductsaresoldbythirdparties,ourbusinessdependsinpartonthefinancialconditionof thesepartiesandtheircustomers.

Someofourproductsaresoldnotonlybyus,butalsobythird-partydistributors.Someofourdistributorsalso marketproductsthatcompetewithourproducts.Changesinthefinancialorbusinessconditions,includingeconomic weakness,markettrendsorindustryconsolidation,orthepurchasingdecisionsofthesedistributorsortheircustomers couldmateriallyadverselyaffectourbusiness.

Ourreputation,sales,andearningscouldbemateriallyadverselyaffectedifthequalityofourproductsandservices doesnotmeetcustomerexpectations.Inaddition,productliabilityclaimsorregulatoryactionscouldmaterially adverselyaffectourbusinessandreputation.

Therearetimeswhenweexperienceproductqualityissuesresultingfromdefectivematerials,manufacturing, packagingordesign.Theseissuesareoftendiscoveredbeforeshipping,causingdelaysinshipping,delaysinthe manufacturingprocess,or,occasionally,cancelledorders.Whenissuesarediscoveredaftershipment,theymayresultin additionalshippingcosts,discounts,refundsorlossoffuturesales.Bothpre-shippingandpost-shippingqualityissues couldhaveamaterialadverseeffectonourbusinessandnegativelyimpactourreputation.

Claimsforlossesorinjuriespurportedlycausedbysomeofourproductsariseintheordinarycourseofour business.Althoughwemaintainproductliabilityinsurancecoverage,claimsaresubjecttoadeductibleormaynotbe coveredunderthetermsofthepolicy.Inadditiontotheriskofsubstantialmonetaryjudgmentsandpenaltiesthatcould haveamaterialadverseeffectonourbusiness,productliabilityclaimsorregulatoryactionscouldresultinnegative publicity,reputationalharmandlossofbrandvalue.Wealsocouldberequiredtorecallandpossiblydiscontinuethesale ofproductsdeemedtobedefectiveorunsafe,whichcouldresultinadversepublicityandsignificantexpense.

Changesinourbusinessstrategiesandtherestructuringofouroperationsaffectourcostsandtheprofitabilityofour businesses.Inaddition,ourprofitabilitymaybemateriallyadverselyaffectedifwegeneratelessproductivity improvementfromourrestructuringandothercostreductionactionsthananticipated.

Asourbusinessenvironmentchanges,wehaveadjustedandmayneedtofurtheradjustourbusinessstrategiesor restructureouroperationsorparticularbusinesses.Aswecontinuetodevelopandadjustourgrowthstrategies,wemay investinnewbusinessesthathaveshort-termreturnsthatarenegativeorlowandwhoseultimatebusinessprospects areuncertainorcouldbeunprofitable.

Weengageinrestructuringactionsfromtimetotimetoreduceourcostsandincreaseefficiencies.Weexpended approximately$42millionin2024comparedto$79millionforrestructuringactionsin2023.Ourrestructuringactionsin 2024relatedtovariouslocationsacrossourcompany,primarilyinourSolutionsGroupreportablesegment.Our restructuringactionsin2023includedarestructuringplantofurtheroptimizetheEuropeanfootprintofourMaterials Groupreportablesegment.Wehadincrementalsavingsfromrestructuringactions,netoftransitioncosts,of approximately$63millionin2024.Aspartofourcontinuousefficiencyimprovementculture,weintendtocontinueour effortstoreducecosts,whichhaveinthepastincluded,andmaycontinuetoinclude,facilityclosuresandsquarefootage reductions,headcountreductions,organizationalrestructuring,processstandardization,andmanufacturingrelocation. Thesuccessoftheseeffortsisnotassuredandtargetedsavingsmaynotberealized.Inaddition,costreductionactions canresultinrestructuringchargesandcouldexposeustoproductionrisk,lossofsalesandemployeeturnover.We cannotprovideassurancethatwewillachievetheintendedresultsofanyofourrestructuringandothercostreduction actions,whichinvolveoperationalcomplexities,consumemanagementattentionandrequiresubstantialresourcesand effort.Ifwefailtoachievetheintendedresultsofsuchactions,ourcostscouldincrease,ourassetscouldbeimpaired,and ourreturnsoninvestmentscouldbelower.

Ourabilitytodevelopandsuccessfullymarketnewproductsandapplicationsimpactsourcompetitiveposition.

Thetimelyintroductionofnewproductsandimprovementstocurrentproductshelpsdetermineoursuccess.Many ofourcurrentproductsaretheresultofourresearchanddevelopmentefforts,forwhichweexpensed$138millionin 2024.Theseeffortsaredirectedprimarilytowarddevelopingnewproductsandsolutionsandoperatingtechniquesand improvingproductperformance,oftenincloseassociationwithourcustomersorendusers.Theseeffortsincludepatent andproductdevelopmentworkrelatingtoprintingandcoatingtechnologies,aswellasadhesive,releaseandink chemistriesinourMaterialsGroupreportablesegment.WefocusonresearchprojectsrelatedtoRFID,external embellishmentsanddigitalsolutionsinourSolutionsGroupreportablesegment.Additionally,ourresearchand developmenteffortsincludesustainableinnovationanddesignofproductsthatincreasetheuseofrecycledcontent, reducewaste,extendlifeorenablerecycling.Researchanddevelopmentrequiresinnovationandanticipationofmarket trends,whichmeansthatthecostsoftheseexpendituresmaynotberecoveredthroughadditionalsales.Wecouldfocus onproductsthatultimatelyarenotacceptedbycustomersorendusersorwecouldexperiencedelaysintheproduction orlaunchofnewproductsthatcouldcompromiseourcompetitiveposition.

Ourinfrastructureneedsimpactourbusinessandexpenditures.

Wecontinuetoinvestinourlong-termgrowthandmarginexpansionplans,withapproximately$240millionin capitalexpenditures,includingfixedassetsandinformationtechnology,in2024.Wemaynotbeabletorecoupthecosts ofourinfrastructureinvestmentsifactualdemandisnotasweanticipate.Inrecentyears,weexpandedourMaterials Group’smanufacturingcapabilitiesinFrance,IndiaandOhio;movedourSolutionsGroup’sVietnambusinessintoanew, expandedfacility;andmadeadditionalinvestmentsinbothcapacityandbusinessdevelopmentgloballyforourIntelligent Labelsplatform,includingnewfacilitiesinBrazilandconsolidatedoperationsinMexico.Inaddition,weaddedcapacity throughouracquisitionsofSilverCrystal,LionBrothersandThermopatchin2023.Infrastructureinvestments,whichare long-terminnature,maynotgeneratetheexpectedreturnduetochangesinthemarketplace,failuresinexecution,and otherfactors.Significantchangesfromourexpectedneedforand/orreturnsonourinfrastructureinvestmentscould materiallyadverselyaffectourbusiness.

Difficultyinthecollectionofreceivablesasaresultofeconomicconditionsorothermarketfactorscouldhavea materialadverseeffectonourbusiness.

Althoughwehaveprocessestoadministercreditgrantedtocustomersandbelieveourallowanceforcreditlosses isadequate,wehaveinthepasthadtoincreasetheallowancedueto,amongotherthings,epidemics,pandemicsor otheroutbreaksofillness,supplychainchallenges,regulatoryrestrictionsandinflationarypressures,andinthefuture mayexperiencelossesasaresultofourinabilitytocollectsomeofouraccountsreceivable.Acustomer’sfinancial difficultiesarelikelytoresultinreducedbusinesswiththatcustomer.Wemayalsoassumehighercreditriskrelatingto receivablesofacustomerexperiencingfinancialdifficulty.Ifthesedevelopmentsweretooccurwidelyinourcustomer base,ourinabilitytocollectonouraccountsreceivablefromcustomerscouldsubstantiallyreduceourcashflowsand incomeandhaveamaterialadverseeffectonourbusiness.

Thereisarapidlyevolvingawarenessandfocusfromcertainstakeholders,includingourinvestors,customersand employees,withrespecttoourcompany’ssustainabilityandgovernancepractices,whichcouldaffectourbusiness.

Investorandsocietalexpectationswithrespecttosustainabilityorgovernancematterscontinuetoevolve,withsome stakeholdersseekingcompaniestodemonstrateprogresswithrespecttoenvironmentalstewardship,humancapital, corporategovernance,supportforourcommunities,andtransparency,andotherstakeholderssuggestingthatcompanies focusondeliveringfortheirstockholderstotheexclusionoffocusintheseotherareas.Afailuretoadequatelymeetevolving stakeholderexpectationsandtimelycomplywithcompetingregulatoryrequirementsatthefederal,stateandlocallevelscould resultinlossofbusiness,dilutedmarketvaluation,aninabilitytoattractandretaincustomersandpersonnel,increased negativeinvestorsentimenttowardusand/orourcustomersandthediversionofinvestmenttootherindustries,whichcould haveanegativeimpactonourstockpriceandaccesstoandcostofcapital.

RisksRelatedtoInformationTechnology

Significantdisruptiontotheinformationtechnologyinfrastructurethatstoresourinformationandrunsour operationscouldmateriallyadverselyaffectourbusiness.

Werelyontheefficientanduninterruptedoperationofalargeandcomplexinformationtechnologyinfrastructureto linkourglobalbusiness.Likeallinformationtechnologysystems,oursaresusceptibletoanumberofrisksincluding,butnot limitedto,damageorinterruptionsresultingfromobsolescence,naturaldisasters,powerfailures,humanerror,viruses,social engineering,phishing,ransomwareorothermaliciousattacksandcybersecurityevents.Weupgradeandinstallnewsystems, which,ifinstalledorprogrammedincorrectlyoronadelayedtimeframe,couldcausedelaysorcancellationsofcustomer orders,impedethemanufactureorshipmentofproducts,ordisrupttheprocessingoftransactions.Wehavecontinuedto implementmeasurestomitigateourriskrelatedtosystemandnetworkdisruptions,butifasignificantdisruptionwereto occur,wecouldincurlossesandremediationcoststhatcouldhaveamaterialadverseeffectonourbusiness.

Additionally,werelyonservicesprovidedbythird-partyvendorsforcertaininformationtechnologyprocesses, includingsysteminfrastructuremanagement,applicationmanagement,andsoftwareasaservice.Whilewehavematuredour cybersecurityduediligenceprocess,thisrelianceonthirdpartiesmakesouroperationsvulnerabletoafailurebyanyoneof thesevendorstoperformadequatelyormaintaineffectiveinternalcontrols.

Cybersecurityorothersecuritybreachescouldcompromiseourinformationandexposeustoliability,whichcould haveamaterialadverseeffectonourbusinessandreputation.

Wemaintaininformationnecessarytoconductourbusinessindigitalform,whichisstoredindatacentersandonour networksandthird-partycloudservices,includingconfidentialandproprietaryinformationaswellaspersonalinformation regardingourcustomersandemployees.Thesecuremaintenanceofthisinformationiscriticaltoouroperations.Data maintainedindigitalformandoncloudservicesissubjecttotheriskofintrusion,tamperingandtheft.Wedevelopand maintainsystemsandprocessesatsignificantcosttopreventthisfromoccurring,andconductongoingmonitoringand updatingastechnologieschangeandeffortstoovercomesecuritymeasuresbecomemoresophisticated.Weexperience non-materialcybersecurityeventseachyearthatareescalatedthroughourdocumentedandtestedsecurityincidentresponse plan,andalthoughwehavenotexperiencedasignificantbreachinrecentyears,thepossibilityofintrusion,tamperingand theftcannotbeeliminatedentirely.Ourinformationtechnologyandinfrastructurearevulnerabletoattacksbythreatactorsor systemcompromisesduetoemployeeerror,malfeasanceorotherdisruptions,andthethreatlandscaperemainschallenging withourdigitalbusinesstransformation,remoteorhybridemployees,theincreasinguseofartificialintelligence(“AI”),and interconnectedsupplychainsexpandingtheriskofattack.ThreatactorsareincreasinglyleveragingAIforcyberattacks,and ourincreasinguseofAIcarriesrisksrelatedtodatasecurity,privacyevents,andpotentialalgorithmicbias.TheseAIrisks couldleadtooperationaldisruptions,regulatoryinvestigationsoractions,datasecurityeventsandpotentialfinancialloss.

WealsoperformcybersecurityduediligenceandmitigateidentifiedrisksduringourM&Aduediligenceprocess; however,thereisstillariskthatarecentorfutureacquisitionexperiencesaneventthatcouldleadtoabreachbefore risksareabletobemitigated.Additionally,weprovideconfidential,proprietaryandpersonalinformationtothirdparties whenitisnecessarytopursuebusinessobjectives.Whileweobtainwrittenagreementsandassurancesthatthesethird partieswillprotectthisinformationand,whereappropriate,assesstheprotectionsutilizedbythesethirdparties,weare awareofsuppliersinourecosystemwhohaveexperiencedsecurityevents,andthereisarisktheconfidentialityofdata heldbythirdpartiesmaybecompromised.

Breachesorattackscancompromiseournetwork,thenetworkofathirdpartytowhomwehavedisclosed confidential,proprietaryorpersonalinformation,adatacenterwherewehavestoredsuchinformationorathird-party AveryDennisonCorporation | 2024AnnualReport 13

cloudserviceprovider,andtheinformationstoredtherecouldbeaccessed,publiclydisclosed,lostorstolen.Anyaccess, disclosureorlossofinformationcoulddisruptouroperations,impairourabilitytoconductbusiness,resultinlegalclaims orproceedings,damageourreputation,orresultinthelossordiminishedvalueofprofitableopportunitiesandthelossof revenueasaresultofunlicenseduseofourintellectualproperty.Contractualprovisionswiththirdparties,includingcloud serviceproviders,substantiallylimitourabilitytofullyrecoverourlosses.Ifthepersonalinformationofourcustomersor employeesweretobemisappropriated,wecouldincurcoststocompensateourcustomersoremployeesorpaydamages orfinesasaresultoflitigationorregulatoryactionsandourreputationwithourcustomersandemployeescouldbe injured,resultinginlossofbusinessordeclineinmorale.Dataprivacylegislationandregulationhavebeenincreasingin recentyears–including,forexample,theGeneralDataProtectionRegulationintheEU,thePersonalInformation ProtectionLawinChina,theGeneralDataProtectionLawinBrazilandthestateofCalifornia’sPrivacyRightsAct–and althoughwehavemadereasonableeffortstocomplywithallapplicablelawsandregulations,therecanbenoassurance thatwewillnotbesubjecttoregulatoryactionintheeventofadataprivacyviolation.

Cybersecurityriskandransomwareattacksoncompaniescontinuetosignificantlyincreaseandtherecanbeno assurancethatwehavefullyprotectedourinformation,thatthirdpartiestowhomwehavedisclosedsuchinformationor withwhomwehavestoredsuchinformation(indatacentersandinthecloud)havetakeneffectiveprecautions,orthat wewillnotexperiencehackingorintrusionattemptsthatcouldhaveamaterialadverseeffectonourbusiness.Inaddition tomaintainingacomprehensivesetofendpoint,network,emailandcloudsecuritysolutions,wecontinuetotakestepsto furtherimprovethesecurityofournetworksandsystems,includingfurtherstrengtheningauthentication;continuingto matureourzerotrustarchitectureandstrategy;maturingouroperationaltechnologysecurityprogram;furtheringour advancedpreventionanddetectionmeasures;furtherenhancingandtestingoursecurityincidentresponseplan; upgradinglegacysystemstosimplifyandstandardizebusinessprocessesandapplications;implementingmorerobust cloudsecurityacrossmultipleplatforms;adoptingAIpolicies,governanceandriskmanagement;continuouslyimproving informationtechnologyprojectandportfoliomanagementdiscipline;enhancingaccountabilitywithmoreaggressivekey performanceindicatortargets;continuingtomatureourdatalosspreventionframeworktoprotectourcriticaldata, networkandsiteaccesscontrols;advancingouruseraccessmanagementprogram;limitingUSBdriveaccessacrossour company;increasingnetworksegmentation;enhancingourfocusonthirdpartyriskmanagement;andimprovingour capabilitiesbasedonthreatintelligenceandthepublicizedincidentsexperiencedbyothercompanies,aswellasones thatwehaveexperienceddespitetheirminimaloperationalorfinancialimpacttodate.

RisksRelatedtoIncomeTaxes

Changesinourtaxratesaffectourbusiness.

Oureffectivetaxrateisaffectedbychangesinthemixofearningsincountrieswithdifferingstatutorytaxrates, changesinthevaluationofdeferredtaxassetsandliabilities,orchangesintaxlawsandregulationsortheir interpretation.Theimpactofthesechangescouldmateriallyimpactourbusiness.

Legislationimplementingchangesintaxationofbusinessactivities,adoptionofothercorporatetaxpolicies,orother changesintaxlegislationimpactourbusiness.

Thepreventionofbase-erosionandtaxtransparencycontinuetobehighprioritiesformanytaxjurisdictions worldwide.Asaresult,policiesregardingcorporateincomeandothertaxesremainunderheightenedscrutinyglobally. Duetothesizeofourinternationalbusinessactivities,anysubstantialchangeincorporatetaxpolicies,enforcement activitiesorlegislativeorregulatoryactionscouldhaveamaterialadverseeffectonourbusiness.

Additionally,theU.S.CongressandPresidentialadministrationarecurrentlycontrolledbythesamepoliticalparty, andhaveindicatedadesiretoextendormakepermanentcertaintaxprovisionsofthe2017TaxCutsandJobsAct,as wellaspotentiallyintroduceotherchangesintaxlawsandregulations.Thetimingandimpactofsuchpotentialchanges areuncertainandmaymateriallyimpactoureffectivetaxrate.

Theamountofvarioustaxeswepayissubjecttoongoingcompliancerequirementsandauditsbyfederal,stateand foreigntaxauthorities.

Wearesubjecttoregularexaminationsofourincometaxreturnsbyvarioustaxauthorities.Weregularlyassess thelikelihoodofmaterialadverseoutcomesresultingfromtheseexaminationstodeterminetheadequacyofourprovision fortaxes.Inaddition,taxenforcementhasbecomeincreasinglyaggressiveinrecentyearsfocusedprimarilyontransfer 14 2024AnnualReport | AveryDennisonCorporation

pricingandintercompanydocumentation.Ourestimateofthepotentialoutcomeofuncertaintaxissuesrequires significantjudgmentandissubjecttoourassessmentofrelevantrisks,facts,andcircumstancesexistingatthetime.We usetheseassessmentstodeterminetheadequacyofourprovisionforincometaxesandothertax-relatedaccounts.Our resultsmayincludefavorableorunfavorableadjustmentstoourestimatedtaxliabilitiesintheperiodtheassessmentsare madeorresolved,whichmaymateriallyadverselyaffectoureffectivetaxrate.

Wehavedeferredtaxassetsthatwemaynotbeabletorealizeundercertaincircumstances.

Ifweareunabletogeneratesufficienttaxableincomeincertainjurisdictions,orifthereisasignificantchangein thetimeperiodwithinwhichtheunderlyingtemporarydifferencesbecometaxableordeductible,wecouldberequiredto increaseourvaluationallowancesagainstourdeferredtaxassets.Thiswouldincreaseoureffectivetaxrateandcould haveamaterialadverseeffectonourbusiness.Inaddition,changesinstatutorytaxratesmaychangeourdeferredtax assetorliabilitybalances,witheitherafavorableorunfavorableimpactonoureffectivetaxrate.Asignificantportionof ourindefinite-livednetoperatinglosscarryforwardsisconcentratedinLuxembourgandmayrequiredecadestobefully utilizedunderourcurrentbusinessmodel.Decreasesinthestatutorytaxrateorchangesinourabilitytogenerate sufficientfuturetaxableincomeinLuxembourgcouldmateriallyadverselyaffectoureffectivetaxrate.Inaddition,the computationandassessmentoftherealizabilityofourdeferredtaxassetsmayalsobemateriallyimpactedbynew legislationorregulations.

RisksRelatedtoHumanCapital

Forustoremaincompetitive,deliveronourbusinessstrategyandavoidbusinessdisruption,itisimportanttorecruit highcalibertalent,retainkeymanagementandhighly-skilledemployeesandreceivehighqualityservicefromall outsourcedserviceproviders.Thisincludesprovidingmarket-competitivecompensationandbenefitsandensuring anengagedglobalteam.

Competitiontorecruitandretaincriticaltalenthasincreasedinrecentyears.Ourongoingproductivityeffortsand restructuringactionscanincreasethischallenge.Whenitcomestoouroutsourcedserviceproviders,wehave experienceddelaysorerrorsandreducedresourceavailabilityandmanageongoingriskwhenitcomestopeople, processesandsoftware.

Executivesuccessionplanningiscriticaltoourlong-termsuccess.Weexperiencedseveralrecentkey managementchanges,includingtheappointmentsofourPresident,MaterialsGroup,andInterimChiefFinancialOfficerin 2024andourPresident/ChiefExecutiveOfficerandPresident,SolutionsGroupin2023;ineachcase,theindividuals appointedtothesepositionswerelong-servingandexperiencedleadersatourcompany.Whilewebelievewehave appropriateleadershipdevelopmentprogramsandsuccessionplansinplacethatareregularlydiscussedwithourBoard’s TalentandCompensationCommittee,anyfailuretoensureeffectiveleadershiptransitionsandknowledgetransfer involvingkeymanagement(orotherhighly-skilledemployees)couldhinderourstrategicplanningandexecution.

Wehavevariousnon-U.S.collectivelaborarrangements,whichmakeussubjecttopotentialworkstoppages,aswell asunionandworkscouncilcampaignsandotherlabordisputes,anyofwhichcouldadverselyimpactourbusiness.

Workinterruptionsorstoppagesatourcompanyoroursupplierscouldsignificantlyimpactourabilitytodeliverfor ourcustomers.Inaddition,collectivebargainingagreements,unioncontractsandlaborlawsmayimpairourabilityto reducelaborcostsbyclosingordownsizingmanufacturingfacilitiesbecauseoflimitationsonpersonnelandsalaryand otherrestrictions.Aworkstoppageatoneormoreofourfacilities,orthefacilitiesofourcustomersorsuppliers,could haveamaterialadverseeffectonourbusiness.

Inaddition,therecentandongoinggeopoliticalunrestandweather-relatedeffectsofclimatechangeinnumerous regionscouldimpactthesafetyandproductivityofouremployees.Thoseimpactscouldalsohinderourabilitytorecruit andgrowourtalentpoolsintheimpactedregions/countries.

RisksRelatedtoOurIndebtedness

Ifourindebtednessincreasessignificantlyorourcreditratingsaredowngraded,wemayhavedifficultyobtaining acceptableshort-andlong-termfinancing.

AtDecember28,2024,wehadapproximately$3.15billionofdebt.Ourlevelofindebtednessandcreditratings aresignificantfactorsinourabilitytoobtainshort-andlong-termfinancing.Significantlyunfavorablechangesinourdebt AveryDennisonCorporation | 2024AnnualReport 15

leveragepositionand/orlowercreditratingscouldnegativelyimpactourabilitytoissuedebtatfavorabletermsto supportourbusinessneedsandresultinhigherfinancingcosts.Adowngradeofourshort-termcreditratingscould impactourabilitytoaccessthecommercialpapermarketsandincreaseourborrowingcostsoncommercialpaperor alternativefundingsources,includingourrevolvingcreditfacility(the“Revolver”)orothercreditfacilities.Ifouraccessto commercialpapermarketsweretobecomelimited,wewouldneedtoobtainshort-termfundingunderourRevolver, whichwouldresultinthesameexposuretovariableinterestrates.

Anincreaseininterestratesadverselyaffectsourbusiness.

In2024,ouraveragevariable-rateborrowingswereapproximately$400million.Increasesinshort-terminterest ratesdirectlyimpacttheamountofinterestwepay.Fluctuationsininterestratescanincreaseourborrowingcostsand haveamaterialadverseeffectonourbusiness.

Inrecentyears,theU.S.FederalReserveandsimilarmonetarypolicymakingentitiesaroundtheworldsignificantly raisedinterestratesinanefforttocurbrisinginflationacrosstheglobe,beginningtomodestlyreduceratesin2024.As ofDecember28,2024,theU.S.FederalReserve’sbenchmarkinterestratewasbetween4.25%and4.50%,downfrom between5.25%and5.50%thesametimein2023.Whenlong-andshort-terminterestratesrise,ourborrowingcosts increase.Continuedincreasesininterestratescould,amongotherthings,reducetheavailabilityand/orincreasethecosts ofobtainingnewdebtandrefinancingexistingindebtednessandnegativelyimpactourbusiness.

Ourcurrentandfuturedebtcovenantsmaylimitourflexibility.

Ourcreditfacilitiesandtheindenturesgoverningourmedium-andlong-termnotescontain,andanyofourfuture indebtednesslikelywouldcontain,restrictivecovenantsthatimposeoperatingandfinancialrestrictionsonus.Among otherthings,thesecovenantsrestrictourabilitytoincuradditionalindebtedness,incurcertainliensonourassets,make certaininvestments,sellourassetsormergewiththirdparties,orenterintocertaintransactions.TheRevolvercontainsa financialcovenantthatrequiresustomaintainamaximumleverageratio.RefertoItem7.“Management’sDiscussionand AnalysisofFinancialConditionandResultofOperations”,”CapitalResources”ofthisAnnualReportonForm10-Kfor moreinformationaboutthisfinancialcovenant.Theserestrictivecovenantsandratiosmaylimitorprohibitusfrom engagingincertainactivitiesandtransactionsthatmaybeinourbestinterest,whichcouldmateriallyadverselyaffectour business.Thefailuretocomplywiththeseorothercovenantsgoverningotherindebtedness,includingindebtedness incurredinthefuture,couldresultinaneventofdefault,which,ifnotcuredorwaived,couldhaveamaterialadverse effectonourbusiness,financialconditionandresultofoperations,includingcross-defaultstootherdebtfacilities.

RiskRelatedtoOwnershipofOurStock

Ourstockpriceissubjecttosignificantvariability.

Changesinourstockprice,amongotherthings,affectouraccessto,orcostoffinancingfrom,capitalmarkets,our stock-basedcompensationarrangementsandoureffectivetaxrate.Ourstockprice,whichincreasedsignificantlyduring thesecondhalfof2023andthefirsthalfof2024butdeclinedduringthesecondhalfyearof2024,isinfluencedby changesintheoverallstockmarketanddemandforequitysecuritiesingeneral.Otherfactors,includingourfinancial performanceonanabsolutebasisandrelativetopeercompaniesandcompetitors,aswellasmarketexpectationsofour performance,thelevelofperceivedgrowthorprofitofourindustries,andothercompany-specificfactors,mayalso materiallyadverselyaffectourstockprice.Therecanbenoassurancethatourstockpricewillnotcontinuetoexperience significantvariabilityinthefuture.

Wecannotguaranteethatwewillcontinuetorepurchasesharesofourcommonstockorpaydividendsonour commonstockorthatrepurchaseswillenhancelong-termstockholdervalue.Changesinourlevelsofstock repurchasesordividendscouldaffectourstockpriceandincreaseitsvariability.

InApril2022,ourBoardauthorizedtherepurchaseofsharesofourcommonstockwithafairmarketvalueofupto $750million,inadditiontotheamountofsharesthatwerethenavailableforrepurchaseunderourpreviousBoard authorization.In2024,werepurchased1.2millionsharesofourcommonstockatanaggregatecostof$247.5million.As ofDecember28,2024,sharesofourcommonstockintheaggregateamountof$346.9millionremainedauthorizedfor repurchaseunderthisBoardauthorization.Werepurchasesharesthroughavarietyofmethods,whichmayincludeopen marketpurchases,privatelynegotiatedtransactions,blocktradesoracceleratedsharerepurchasetransactions.Ourshare 16 2024AnnualReport | AveryDennisonCorporation

repurchaseauthorizationsdonotobligateustoacquireanyspecificnumberofsharesortorepurchaseanyspecific numberofsharesforanyfixedperiod.Thetimingandamountofourrepurchases,ifany,aresubjecttoourcapital allocationstrategyasitmayevolvefromtimetotime,ourviewofintrinsicvaluecoupledwithadisciplinedrepurchase grid,marketandeconomicconditions,applicablelegalrequirementsandotherrelevantfactors.Wemaylimit,suspendor discontinuerepurchasingsharesatanytimeatourdiscretionwithoutpriornotice.

Payingasustainabledividendisakeypartofourcapitalallocationstrategy.Althoughweincreasedourquarterly dividendratebyapproximately9%inApril2024,therecanbenoassurancethatwewillmaintainthisrateorapprove furtherincreasesinthefuture.Futuredividendsaresubjecttomarketandeconomicconditions,applicablelegal requirementsandotherrelevantfactors.Wearenotobligatedtocontinuedeclaringdividends,andourpaymentof dividendscouldbesuspendedordiscontinuedatanytimeatourdiscretion.Wewillcontinuetoretainfutureearningsto developourbusiness,asopportunitiesarise,andevaluatetheamountandtimingoffuturedividendsbasedonour operatingresults,financialcondition,capitalallocationstrategiesandgeneralbusinessconditions.Theamountandtiming ofanyfuturedividendsmayvary,andthepaymentofanydividenddoesnotassurethatwewillpaydividendsinthe future.

Inaddition,anyfuturerepurchasesofourcommonstockorpaymentofdividends,oranydeterminationtocease repurchasingstockorpayingdividends,couldaffectourstockpriceandsignificantlyincreaseitsvariability.Additionally, anyfuturerepurchasesofourcommonstockorpaymentofdividendscouldimpactourabilitytoinvestinourbusinesses orpursueacquisitionsandventureinvestments.Althoughoursharerepurchaseprogramisintendedtoenhancelongtermstockholdervalue,thereisnoassurancethatitwilldosobecausethemarketpriceofourcommonstockmaydecline belowthelevelsatwhichwerepurchasedsharesofstockandshort-termstockpricefluctuationscouldreducethe program’seffectiveness.

RisksRelatedtoLegalandRegulatoryMatters

Infringingintellectualpropertyrightsofthirdpartiesorinadequatelyacquiringorprotectingourintellectualproperty couldharmourabilitytocompeteorgrow.

Becauseourproductsinvolvecomplextechnologyandchemistry,weareinvolvedfromtimetotimeinlitigation involvingpatentsandotherintellectualproperty.Partieshavefiled,andinthefuturemayfile,claimsagainstusalleging thatwehaveinfringedtheirintellectualpropertyrights.Wewerepartytoalitigation,whichwesettledin2024,inwhich ADASAInc.(“Adasa”),anunrelatedthirdparty,allegedthatcertainofourRFIDproductswithinourSolutionsGroup reportablesegmentinfringeditspatent.Formoreinformationonthislitigation,seeNote8,“Contingencies,”intheNotes toConsolidatedFinancialStatements.Ifweareheldliableforinfringementinothermatters,wecouldberequiredtopay damages,obtainlicensesorceasemakingorsellingcertainproducts.Therecanbenoassurancethatlicenseswouldbe availableoncommerciallyreasonabletermsoratall.Thedefenseoftheseclaims,whetherornotmeritorious,orthe developmentofnewtechnologiesiscostlyanddivertstheattentionofmanagement.

Wealsohavevaluableintellectualpropertyuponwhichthirdpartiesmayinfringe.Weseektoprotectandrestrict accesstoourintellectualpropertyandproprietaryinformationbyrelyingonthepatent,trademark,copyrightandtrade secretlawsoftheU.S.andothercountries,aswellasnon-disclosureagreements.However,itmaybepossibleforathird partytoobtainourinformationwithoutourauthorization,independentlydevelopsimilartechnologies,orbreacha non-disclosureagreemententeredintowithus.Inaddition,manyofthecountriesinwhichweoperatedonothave intellectualpropertylawsasprotectiveasthoseintheU.S.Theuseofourintellectualpropertybysomeoneelsewithout ourauthorizationcouldreduceoreliminatecertaincompetitiveadvantageswehave,causeustolosesalesorotherwise harmourbusiness.Further,thecostsassociatedwithprotectingourintellectualpropertyrightscouldmateriallyadversely impactourbusiness.

WehaveobtainedandappliedforU.S.andforeigntrademarkregistrationsandpatents,andwillcontinueto evaluatewhethertoregisteradditionaltrademarksandapplyforadditionalpatents.Wecannotguaranteethatanyofour pendingapplicationswillbeapprovedbytheapplicablegovernmentalauthorities.Further,wecannotassurethatthe validityofourpatentsorourtrademarkswillnotbechallenged.Inaddition,thirdpartiesmaybeabletodevelop competingproductsusingtechnologythatavoidsourpatents.

Unfavorabledevelopmentsinlegalproceedings,investigationsandotherlegalandregulatorymatters,couldimpact usinamateriallyadversemanner.

Therecanbenoassurancethatanyoutcomeofanylitigation,investigationorotherlegal,environmental, complianceandregulatorymatterwillbefavorable.Ourfinancialresultscouldbemateriallyadverselyaffectedbyan unfavorableoutcometopendingorfuturelitigationandinvestigations,andotherlegal,regulatory,environmentaland compliancematters.SeeNote8,“Contingencies,”intheNotestoConsolidatedFinancialStatementsformore information.

Wearerequiredtocomplywithanti-corruptionandothercompliancelawsandregulationsoftheU.S.government andvariousinternationaljurisdictions,andourfailuretocomplywiththeselawsandregulationscouldhavea materialadverseeffectonourbusiness.

Wearerequiredtocomplywiththeanti-corruptionandothercompliancelawsandregulationsoftheU.S. governmentandvariousinternationaljurisdictions,suchastheU.S.ForeignCorruptPracticesActandtheUK’sBribery Actof2010.Ifwefailtocomplywithanti-corruptionlaws,wecouldbesubjecttosubstantialcivilandcriminalpenalties, includingfines,monetarydamagesandincarcerationforresponsibleemployeesandmanagers.Inaddition,ifour distributorsoragentsfailtocomplywiththeselaws,ourbusinessmayalsobemateriallyadverselyaffectedthrough reputationalharmandpenalties.

Wearerequiredtocomplywithenvironmental,health,andsafetylawsatouroperationsaroundtheworld.Thecosts ofcomplyingwiththeselawsissignificantandincreasing.

Wearesubjecttonational,state,provincialand/orlocalenvironmental,health,andsafetylawsandregulationsin theU.S.andothercountriesinwhichweoperate,includingthoserelatedtothedisposalofhazardouswasteandGHG emissionsfromourmanufacturingprocesses.Theselaws,whicharecontinuallyevolvingandimposingadditional requirementsonourcurrentandformermanufacturingfacilities,imposeliabilityforthecostsof,anddamagesresulting from,cleaningupcurrentsites,pastspills,disposalsandotherreleasesofhazardoussubstances.Enforcementofthese lawscanbeunclearandissubjecttothediscretionofgovernmentalagencies.Anyfailuretocomplywithexistingand futureenvironmental,healthandsafetylawscouldsubjectustofees,penalties,costsorliabilities,impactourproduction capabilities,limitourabilitytosell,expandoracquirefacilities,andhaveamaterialadverseeffectonourbusiness.Laws andregulationsrelatedtotheenvironment,productcontentandproductsafetyarecomplex,changeoften,andcanbe opentodifferentinterpretations.Inaddition,wecouldbemateriallyandadverselyimpactedbyanyenvironmentalor productsafetyenforcementactionaffectingoursuppliers,particularlyinemergingmarkets.

Wehaveaccruedliabilitiesfortheenvironmentalclean-upofcertainsiteswhereitisprobablethatalosswillbe incurredandthecostoramountoflosscanbereasonablyestimated,includingthetensitesforwhichU.S.governmental agencieshavedesignatedusasapotentiallyresponsiblepartyasofour2024fiscalyear-end.Becauseofthe uncertaintiesassociatedwithenvironmentalassessmentandremediationactivities,theactualexpensetoremediate currentlyidentifiedsitescouldbehigherthantheliabilitiesaccruedandadditionalsitescouldbeidentifiedinthefuture. SeeNote8,“Contingencies,”intheNotestoConsolidatedFinancialStatementsformoreinformation.

Wearesubjecttoexportandimportcontrollawsandregulationsinthejurisdictionsinwhichwedobusinessthat couldsubjectustoliabilityorimpairourabilitytocompeteinthesemarkets.

Exportcontrollawsandeconomicsanctionsprohibittheshipmentofsomeofourproductstoembargoedor sanctionedcountries,governmentsandpersons.Whilewetrainouremployeestocomplywiththeseregulations,use thirdpartyscreeningsoftware,andtakeothermeasures,wecannotguaranteethataviolationwillnotoccur.Aprohibited shipmenthasnegativeconsequences,includinggovernmentinvestigations,penalties,fines,civilandcriminalsanctions and/orreputationalharm.Anychangeinexportorimportregulations,economicsanctionsorrelatedlegislation,shiftin theenforcementorscopeofexistingregulations,orchangeinthecountries,governments,personsortechnologies targetedbysuchregulations,coulddecreaseourabilitytoexportorsellourproductsinternationally.Anylimitationonour abilitytoexportorsellourproductscouldmateriallyadverselyaffectourbusiness.

Someofourproductsaresubjecttoexportcontrollawsandregulationsandmaybeexportedonlywithanexport licenseorthroughanapplicableexportlicenseexception.Ifwefailtocomplywithexportlicensing,customsregulations, economicsanctionsorotherlaws,wecouldbesubjecttosubstantialcivilorcriminalpenalties,includingfines,criminal chargesagainstresponsibleemployeesandlossofexportorimportprivileges.Inaddition,ifourdistributorsfailtoobtain appropriateimport,exportorre-exportlicensesorpermits,wemayalsobemateriallyadverselyaffectedthrough 18 2024AnnualReport | AveryDennisonCorporation

reputationalharmandpenalties.Obtainingthenecessaryexportlicenseforaparticularsalemaybetimeconsumingand expensiveandcouldresultinthedelayorlossofsalesopportunities.

RisksRelatedtoOtherFinancialMatters

Ourpensionassetsandliabilitiesaresignificantandsubjecttomarket,interestandcreditriskthatmayreducetheir assetvaluesorincreasetheirliabilityvalues,eitherofwhichcouldincreaseournetpensionliability.

Changesinthevalueofourpensionassets,whichwasapproximately$660millionasofDecember28,2024, couldmateriallyadverselyaffectourearningsandcashflowsasaresultofadeclineinthevalueofourinvestmentsdue toincreasesininterestratesorvolatilityinfinancialmarkets.Inaddition,ourpensionliabilities,whichwereapproximately $709millionasofDecember28,2024,aresubjecttointerestandinflationriskthatmayincreasetheirvalue.We regularlyevaluateoptionstobettermanagethevolatilityassociatedwithourpensionassetsandliabilitiesandmay continuetakingactionstoreducethefinancialvolatilityassociatedwithourpensionliabilities,whichcouldresultin significantcharges.Althoughwemitigatetheserisksbyinvestinginhighqualitysecurities,ensuringadequate diversificationofourinvestmentportfolio,monitoringourportfolio’soverallriskprofileandmanagingitsliabilityprofile, ournetpensionliabilitymayneverthelessincrease.

Theactuarialassumptionsusedforvaluationpurposesaffectourearningsandcashflows.Changesinaccounting standardsandgovernmentregulationscouldalsoaffectourpensionandpostretirementplanexpenseandfunding requirements.

Weevaluatetheassumptionsusedindeterminingprojectedbenefitobligationsandthefairvalueofplanassets forournon-U.S.pensionplansandotherpostretirementbenefitplansinconsultationwithoutsideactuaries.Ourpension andprojectedpostretirementbenefitexpensesandfundingrequirementsincreaseordecreaseasaresultofthe assumptionsweuse,includingthediscountrate,expectedlong-termrateofreturnormortalityrates.Becauseof changingmarketconditionsorchangesinparticipantpopulations,theactuarialassumptionsthatweusemaydifferfrom actualresults,whichcouldhaveasignificantimpactonourpensionandpostretirementbenefitobligationsandrelated costs.Fundingobligationsforeachplanaredeterminedbasedonthevalueofassetsandliabilitiesonaspecificdatein accordancewithapplicablegovernmentregulations.Ourpensionfundingrequirements,andthetimingoffunding payments,couldalsobeaffectedbyfuturelegislationorregulation.WeareimplementingplanstocomplywiththeDutch PensionActpassedin2023,whichrequirestraditionaldefinedbenefitplanstobephasedoutandtransitiontodefined contributionplansbeforeJanuary1,2028.OurDutchdefinedbenefitplanincludesaminimumguaranteedfundingratio thatwillhavetobeterminatedaspartofthetransition,forwhichwewillhavetocompensatetheDutchPensionFund.

Animpairmentinthecarryingvalueofgoodwillcouldnegativelyimpactourresultsofoperationsandnetworth.

Goodwillisinitiallyrecordedatfairvalueandnotamortizedandisreviewedforimpairmentannually(ormore frequentlyifimpairmentindicatorsarepresent).AsofDecember28,2024,thecarryingvalueofourgoodwillwas $1.98billion.In2024,wedeterminedthatthegoodwillofourreportingunitswasnotimpaired.Wereviewgoodwillfor impairmentbycomparingthefairvalueofareportingunittoitscarryingvalue,calculatinggoodwillvaluationsprimarily usinganincomeapproachbasedonthepresentvalueofprojectedfuturecashflowsofeachreportingunit.Inassessing fairvalue,wemakeestimatesandassumptionsaboutsales,operatingmargins,growthrates,anddiscountratesbased onourbusinessplans,economicprojections,anticipatedfuturecashflowsandmarketplacedata.Thereareinherent uncertaintiesrelatedtothesefactorsandmanagement’sjudgmentinapplyingthesefactors.Wecouldberequiredto evaluatethecarryingvalueofgoodwillpriortotheannualassessmentifweexperiencedisruptionstoourbusiness, unexpectedsignificantdeclinesinoperatingresults,divestitureofasignificantcomponentofourbusinessorsustained marketcapitalizationdeclines.Thesetypesofeventscouldresultingoodwillimpairmentchargesinthefuture,which couldmateriallyadverselyaffectourbusinessintheperiodsinwhichtheyaremade.

Item1B.UNRESOLVEDSTAFFCOMMENTS

None.

Item1C.CYBERSECURITY

CybersecurityRiskManagementandStrategy

Ourcybersecurityriskmanagementprogram,whichisdesignedtoprotecttheconfidentiality,integrityand availabilityofourcriticalsystemsandinformation,includesacomprehensivecybersecurityincidentresponseplan.

WedesignandassessourprogrambasedontheISO27000andtheNationalInstituteofStandardsand Technology(NIST)SP-800andCybersecurityFramework.Weusetheseframeworkstohelpusidentify,assessand managecybersecurityrisksrelevanttoourbusinessanddonotintendtosuggestthatwemeetanyparticulartechnical standards,specificationsorrequirements.

Ourcybersecurityriskmanagementprogramcomplementsouroverallenterpriseriskmanagementprogram,using similarmethodologiesandgovernanceprocessestoidentifyrisksandmitigatingstrategies.

Ourcybersecurityriskmanagementprogramincludesriskassessmentsdesignedtohelpidentifypotentially materialcybersecurityriskstoourcriticalsystems,information,productsandservices,aswellasourbroaderenterprise informationtechnologyenvironment;aninformationtechnologysecurityteamprincipallyresponsibleformanagingour cybersecurityriskassessmentprocesses,securitycontrolsandresponsetoanycybersecurityevents;theuseofthird partyexpertsandserviceproviders,whereappropriate,toassess,testandotherwiseassistwithprotectingoursecurity environment;cybersecurityawarenesstrainingforouremployeesandfurthertrainingforourincidentresponsepersonnel andseniormanagement;acybersecurityincidentresponseplanthatincludesproceduresforassessingandcoordinating ourresponsetocybersecurityevents;andathird-partyriskmanagementprocessforserviceproviders,suppliersand vendors.

Wehavenotexperiencedcybersecurityeventsthathavemateriallyaffectedouroperations,resultsofoperations, orfinancialcondition.However,wefacecertainongoingrisksfromcybersecuritythreatsthat,ifrealized,wouldbe reasonablylikelytomateriallyaffectus,includingouroperations,resultsofoperations,orfinancialcondition.

Risksanduncertaintiesrelatedtocybersecurityarediscussedingreaterdetailunder“RisksRelatedtoInformation Technology”inItem1Aofthisreport.

CybersecurityGovernance

OurBoardofDirectors(our“Board”)considerscybersecurityriskaspartofitsriskoversightfunctionandhas delegatedtotheAuditCommitteeprimaryresponsibilityforoverseeingourcybersecurityriskmanagementprogramand engagingwithmanagementoncybersecurityandotherrisksrelatedtoourinformationtechnologycontrolsandsecurity. OurInformationSecurityOfficer(“ISO”)reportsdirectlytoourChiefInformationOfficer(“CIO”),amemberofour CompanyLeadershipTeamanddirectreportofourChiefExecutiveOfficer(“CEO”).TheCIOandISOtogetherprovide updatesanddiscussourcybersecuritypreparednesswiththeAuditCommitteeatleastsemiannually,whichitsChairthen reportsontoourfullBoard.ManagementupdatestheAuditCommittee,ifandasneeded,regardinganysignificant cybersecurityevents,aswellaseventsthatmayhavehadlesserpotentialimpact.

Ourcybersecurityleadershipteam(“CSLT”),whichincludesleadersaccountableforsecurityoperations,incident response,riskandcompliance,datasecurity,applicationsecurity,digitalsolutionssecurity,vulnerabilitymanagementand operationaltechnologysecurity,isresponsibleforassessingandmanagingourrisksfromcybersecuritythreats.Theteam hasprimaryresponsibilityforouroverallcybersecurityriskmanagementprogramandsupervisesbothourinternal cybersecuritypersonnelandourexternalcybersecurityconsultants.Informationsecuritypersonnelmaintainavarietyof technicalandmanagerialsecuritycertificationsandhavebroadsecurityexperienceinmanufacturing,finance,software andinformationtechnologyenvironments.

TheCSLTsupervisesoureffortstoprevent,detect,mitigateandremediatecybersecurityrisksandincidents throughavarietyofmeans,whichmayincludebriefingsfrominternalsecuritypersonnel;threatintelligenceandother informationobtainedfromgovernmental,publicorprivatesources,includingexternalconsultants;andreportsfrom cybersecuritysystemsdeployedinourinformationtechnologyenvironment.

Item2.PROPERTIES

AsofDecember28,2024,weoperatedmanufacturingfacilitiesinexcessof100,000squarefeetinthereportable segmentsandlocationslistedbelow.

MaterialsGroup

U.S.PeachtreeCity,Georgia;GreenfieldandLowell,Indiana;FairportHarbor,Mentor,OakHarbor,and Painesville,Ohio;andMillHall,Pennsylvania

Non-U.S.SoigniesandTurnhout,Belgium;Vinhedo,Brazil;Guangzhou,Kunshan,andZhuozhou,China; Champ-sur-Drac,France;Gotha,Germany;PuneandNoida,India;Longford,Ireland;Kibbutz Hanita,Israel;Chungju,SouthKorea;Rodange,Luxembourg;Bangi,Malaysia;Queretaro,Mexico; Rayong,Thailand;andCramlington,UnitedKingdom

SolutionsGroup

U.S.FortWayne,Indiana;NewCentury,Kansas;Miamisburg,Ohio;andNashville,Tennessee Non-U.S.Dhaka,Bangladesh;Guangzhou,Nansha,Ningbo,Panyu,Shenzhen,andSuzhou,China;Ancarano, Italy;Kulim,Malaysia;Queretaro,Mexico;andLongAnProvince,Vietnam

Inadditiontothemanufacturingfacilitiesdescribedabove,ourotherprincipalfacilitiesincludeourcorporate headquartersanddivisionalofficeinMentor,OhioandourdivisionalandcorporateofficeslocatedinDallas,Texas; Vinhedo,Brazil;HongKongandKunshan,China;andOegstgeest,theNetherlands.

Weownalloftheprincipalpropertiesidentifiedabove,exceptforthefacilitiesinthefollowinglocations,whichare leased:NewCentury,Kansas;Mentor,Ohio;Nashville,Tennessee;HongKong,Ningbo,Panyu,ShenzhenandZhuozhou, China;KibbutzHanita,Israel;andOegstgeest,theNetherlands.

Weconsiderallourproperties,whetherownedorleased,suitableandadequateforourcurrentneeds.We generallyexpandproductioncapacityasneededtomeetincreaseddemand.Ownedbuildingsandplantequipmentare insuredagainstmajorlossesfromfireandotherusualbusinessrisks,subjecttoapplicabledeductibles.Wearenotaware ofanymaterialdefectsintitleto,orsignificantencumbranceson,ourproperties,exceptforcertainmortgageliens.

Item3.LEGALPROCEEDINGS

SeeNote8,“Contingencies,”intheNotestoConsolidatedFinancialStatements.

Item4.MINESAFETYDISCLOSURES

Notapplicable.

PARTII

Item5.MARKETFORREGISTRANT’SCOMMONEQUITY,RELATEDSTOCKHOLDERMATTERSANDISSUER PURCHASESOFEQUITYSECURITIES

(a)Ourcommonstockislistedunderthetickersymbol“AVY”ontheNewYorkStockExchange.Wedidnotsell securitiesinanyunregisteredtransactionsduringfiscalyear2024.Wehavehistoricallypaidquarterlycash dividends.FuturedividendpaymentsaresubjecttotheapprovalbyourBoardofDirectorsbasedonourearnings, capitalrequirements,financialconditionandotherfactors.

Wehad3,391shareholdersofrecordasofDecember28,2024,thelastdayofour2024fiscalyear.

StockholderReturnPerformance

Thegraphbelowcomparesthecumulativestockholderreturnonourcommonstock,includingreinvestmentof dividends,withthereturnontheS&P500StockIndex,S&P500IndustrialsIndexandDowJonesU.S.Container& PackagingIndex,ineachcaseforthefive-yearperiodendingDecember31,2024.

Avery Dennison

S&P 500 Index

S&P 500 Industrials Index

Dow Jones U.S. Container & Packaging Index

TotalReturnAnalysis(1)

12/31/201912/31/202012/31/202112/31/202212/31/202312/31/2024

AveryDennison$100$121$171$145$165$155

DowJonesU.S.Container& PackagingIndex100121135112120136

S&P500IndustrialsIndex100111135127150176

S&P500Index100118152125158197

(1) Assumes$100investedonDecember31,2019andreinvestmentofdividends.

(b)Notapplicable.

(c)RepurchasesofEquitySecuritiesbyIssuer

Repurchasesbyusorour“affiliatedpurchasers”(asdefinedinRule10b-18(a)(3)oftheExchangeAct)of registeredequitysecuritiesinthefourthquarterof2024areshowninthetablebelow.Repurchasedsharesmaybe reissuedunderourlong-termincentiveplanorusedforothercorporatepurposes.

Period(1)

Approximate dollarvalue ofsharesthat mayyetbe purchased underthe plans(5) September29,2024–October26,2024105.5$215.1105.5$462.9 October27,2024–November23,2024271.7203.2271.7407.7 November24,2024–December28,2024311.0195.6311.0346.9 Total688.2$201.6688.2$346.9

Totalnumber ofshares purchased(2) Average pricepaid pershare(3) Totalnumberof shares purchasedas partofpublicly announced plans(2)(4)

(1) Theperiodsshownareourfiscalmonthsduringthethirteen-weekquarterendedDecember28,2024.

(2) Sharesinthousands.

(3) Averagepricepaidpershareincludestransactioncoststoacquirethesharesandexcludesthenon-deductible1%excisetaxonthenetvalueof repurchasesimposedundertheInflationReductionActof2022.

(4) InApril2022,ourBoardauthorizedtherepurchaseofsharesofourcommonstockwithafairmarketvalueofupto$750million,excludinganyfees, commissionsorotherexpensesrelatedtosuchpurchases,inadditiontotheamountoutstandingunderourpreviousBoardauthorization.Board authorizationsremainineffectuntilsharesintheamountauthorizedthereunderhavebeenrepurchased.

(5) Dollarsinmillions.

Item6.RESERVED

ORGANIZATIONOFINFORMATION

Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations,orMD&A,provides management’sviewsonourfinancialconditionandresultsofoperations,shouldbereadinconjunctionwiththe ConsolidatedFinancialStatementsandrelatednotesthereto,andincludesthesectionsshownbelow.

NON-GAAPFINANCIALMEASURES

WereportourfinancialresultsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesof America,orGAAP,andalsocommunicatewithinvestorsusingcertainnon-GAAPfinancialmeasures.Thesenon-GAAP financialmeasuresarenotinaccordancewith,noraretheyasubstitutefororsuperiorto,thecomparableGAAPfinancial measures.Thesenon-GAAPfinancialmeasuresareintendedtosupplementthepresentationofourfinancialresults preparedinaccordancewithGAAP.Weusethesenon-GAAPfinancialmeasuresinternallytoevaluatetrendsinour underlyingperformance,aswellastofacilitatecomparisonwiththeresultsofcompetitorsforquartersandyear-to-date periods,asapplicable.Basedonfeedbackfrominvestorsandfinancialanalysts,webelievethatthesupplemental non-GAAPfinancialmeasuresweprovidearealsousefultotheirassessmentsofourperformanceandoperatingtrends, aswellasliquidity.Reconciliationsofournon-GAAPfinancialmeasuresfromthemostdirectlycomparableGAAP financialmeasuresareprovidedinaccordancewithRegulationsGandS-K.

Ournon-GAAPfinancialmeasuresexcludetheimpactofcertainevents,activitiesorstrategicdecisions.The accountingeffectsoftheseevents,activitiesordecisions,whichareincludedintheGAAPfinancialmeasures,maymake itmoredifficulttoassessourunderlyingperformanceinasingleperiod.Byexcludingtheaccountingeffects,positiveor negative,ofcertainitems(e.g.,restructuringcharges,outcomesofcertainlegalmattersandsettlements,certaineffectsof strategictransactionsandrelatedcosts,lossesfromdebtextinguishments,gainsorlossesfromcurtailmentorsettlement ofpensionobligations,gainsorlossesonsalesofcertainassets,gainsorlossesonventureinvestments,currency adjustmentsduetohighlyinflationaryeconomies,andotheritems),webelievethatweareprovidingmeaningful supplementalinformationthatfacilitatesanunderstandingofourcoreoperatingresultsandliquiditymeasures.While someoftheitemsweexcludefromGAAPfinancialmeasuresrecur,theytendtobedisparateinamount,frequencyor timing.

Weusethenon-GAAPfinancialmeasuresdescribedbelowinthisMD&A.

• Saleschangeex.currency referstotheincreaseordecreaseinnetsales,excludingtheestimatedimpactof foreigncurrencytranslation,and,whereapplicable,thecurrencyadjustmentsfortransitionalreportingof highlyinflationaryeconomies,andthereclassificationofsalesbetweensegments.Additionally,where applicable,saleschangeex.currencyisalsoadjustedforanextraweekinourfiscalyearandthecalendarshift resultingfromanextraweekinthepriorfiscalyear.Theestimatedimpactofforeigncurrencytranslationis calculatedonaconstantcurrencybasis,withprior-periodresultstranslatedatcurrentperiodaverage exchangeratestoexcludetheeffectofforeigncurrencyfluctuations.

Our2025fiscalyearthatbeganonDecember29,2024willendonDecember31,2025;fiscalyears2026and beyondwillbecoincidentwiththecalendaryearbeginningonJanuary1andendingonDecember31.

• Organicsaleschange referstosaleschangeex.currency,excludingtheestimatedimpactofacquisitionsand productlinedivestitures.

Webelievethatsaleschangeex.currencyandorganicsaleschangeassistinvestorsinevaluatingthesales changefromtheongoingactivitiesofourbusinessesandenhancetheirabilitytoevaluateourresultsfrom periodtoperiod.

24 2024AnnualReport | AveryDennisonCorporation

• Adjustedfreecashflow referstocashflowprovidedbyoperatingactivities,lesspaymentsforproperty,plant andequipment,lesspaymentsforsoftwareandotherdeferredcharges,plusproceedsfromcompany-owned lifeinsurancepolicies,plusproceedsfromsalesofproperty,plantandequipment,plus(minus)netproceeds frominsuranceandsales(purchases)ofinvestments,lessnetcashusedforArgentineBlueChipSwap securities.Whereapplicable,adjustedfreecashflowisalsoadjustedforcertainacquisition-relatedtransaction costs.Webelievethatadjustedfreecashflowassistsinvestorsbyshowingtheamountofcashwehave availablefordebtreductions,dividends,sharerepurchases,andacquisitions.

• Operationalworkingcapitalasapercentageofannualizedcurrentquarternetsales referstotradeaccounts receivableandinventories,netofaccountspayable,andexcludescashandcashequivalents,short-term borrowings,deferredtaxes,othercurrentassetsandothercurrentliabilitiesdividedbyannualizedcurrent quarternetsales.Webelievethatoperationalworkingcapitalasapercentageofannualizedcurrentquarter netsalesassistsinvestorsinassessingourworkingcapitalrequirementsbecauseitexcludestheimpactof fluctuationsattributabletoourfinancingandotheractivities(whichaffectcashandcashequivalents,deferred taxes,othercurrentassetsandothercurrentliabilities)thattendtobedisparateinamount,frequencyor timing,andmayincreasethevolatilityofworkingcapitalasapercentageofsalesfromperiodtoperiod.The itemsexcludedfromthismeasurearenotsignificantlyinfluencedbyourday-to-dayactivitiesmanagedatthe operatinglevelanddonotnecessarilyreflecttheunderlyingtrendsinouroperations.

OVERVIEWANDOUTLOOK

FiscalYear

Ourfiscalyearshavegenerallyconsistedof52weeks,witheveryfifthorsixthfiscalyearconsistingof53weeks; our2024,2023and2022fiscalyearsconsistedof52-weekperiodsendingDecember28,2024,December30,2023 andDecember31,2022,respectively.

Subsequenttofiscalyear-end2024,inJanuary2025,theAuditCommitteeofourBoardofDirectorsapproveda changetoourprevious52-or53-weekfiscalyeargenerallyendingontheSaturdayclosesttoDecember31toafiscal yearcoincidentwiththecalendaryear.Our2025fiscalyearthatbeganonDecember29,2024willendonDecember31, 2025andfiscalyears2026andbeyondwillbeginonJanuary1andendonDecember31.

NetSales

Thefactorsimpactingreportednetsaleschange,ascomparedtotheprior-yearperiod,areshowninthetable below.

20242023

(1) Totalsmaynotsumduetorounding.

In2024,netsalesincreasedonanorganicbasisprimarilyduetohighervolume,partiallyoffsetbytheimpactof rawmaterialdeflation-relatedpricereductions.In2023,netsalesdecreasedonanorganicbasisprimarilyduetolower volume,partiallyoffsetbypricingactions.

NetIncome

Netincomeincreasedfromapproximately$503millionin2023toapproximately$705millionin2024.The primaryfactorsaffectingthisincreasewere:

•Highervolume

•Benefitsfromproductivityinitiatives,includingtemporarycost-savingactions,materialre-engineeringand savingsfromrestructuringactions,netoftransitioncosts

•Theimpactoftheaccrualforalegacylegalmatterintheprioryear

•Lowerrestructuringcharges

Theseitemswerepartiallyoffsetbythefollowingfactors:

•Higheremployee-relatedcosts

•Higherprovisionforincometaxes

•Thenetimpactofrawmaterialdeflation-relatedpricereductions

CostReductionActions

2025Actions

Inthefourthquarter2024,werecorded$13.1millioninrestructuringchargesrelatedtoour2025actions.These chargesconsistedofseveranceandrelatedcostsforthereductionofapproximately90positions,aswellasasset impairmentcharges,atnumerouslocationsacrossourcompany,reflectingactionsinourSolutionsGroupreportable segment.

2023Actions

During2024,werecorded$28.8millioninrestructuringcharges,netofreversals,relatedtoour2023actions. Thesechargesconsistedofseveranceandrelatedcostsforthereductionofapproximately1,280positions,aswellas assetimpairmentcharges,atnumerouslocationsacrossourcompany.During2023,werecorded$49.0millionin restructuringcharges,netofreversals,relatedtotheseactions.Thesechargesconsistedofseveranceandrelatedcosts forthereductionofapproximately1,450positions,aswellasassetimpairmentcharges,atnumerouslocationsacrossour company.

Inthethirdquarterof2023,weapprovedarestructuringplan(the“2023Plan”)tofurtheroptimizetheEuropean footprintofourMaterialsGroupreportablesegmentbyreducingoperationsinamanufacturingfacilityinBelgium.The cumulativechargesassociatedwiththe2023Planconsistedofseveranceandrelatedcostsforthereductionof approximately210positions,aswellasassetimpairmentcharges.Werecorded$30.4millionin2023inrestructuring chargesrelatedtothe2023Plan.Theactivitiesrelatedtothe2023Planareexpectedtobesubstantiallycompletedby mid-2025.

Werealizedapproximately$63millionand$69millioninsavingsfromrestructuringactions,netoftransition costs,in2024and2023,respectively,primarilyrelatedtoour2023actions.

Restructuringchargeswereincludedin“Otherexpense(income),net”intheConsolidatedStatementsofIncome. RefertoNote13,“CostReductionActions,”totheConsolidatedFinancialStatementsformoreinformation.

BusinessAcquisitions

2023BusinessAcquisitions

OnNovember23,2023,wecompletedourbusinessacquisitionofSilverCrystalGroup(“SilverCrystal”),a Canada-basedproviderofsportsapparelcustomizationandapplicationsolutionsacrossin-venue,direct-to-businessand e-commerceplatforms.OnMay22,2023,wecompletedourbusinessacquisitionofLGGroup,Inc.(“LionBrothers”),a Maryland-baseddesignerandmanufacturerofapparelbrandembellishments.OnMarch6,2023,wecompletedour businessacquisitionofThermopatch,Inc.(“Thermopatch”),aNewYork-basedmanufacturerspecializinginlabeling, embellishmentsandtransfersforthesports,industriallaundry,workwearandhospitalityindustries.Theseacquisitions expandedtheproductportfolioinourSolutionsGroupreportablesegment.

TheacquisitionsofSilverCrystal,LionBrothersandThermopatcharereferredtocollectivelyasthe“2023 Acquisitions.”

Theaggregatepurchaseconsideration,includingpurchaseconsiderationpayable,forthe2023Acquisitionswas approximately$231million.Wefundedthe2023Acquisitionsusingcashandcommercialpaperborrowings.Inaddition tothecashpaidatclosing,thesellersinoneoftheseacquisitionsareeligibleforearn-outpaymentsofupto$5million, subjecttotheacquiredcompanyachievingcertainpost-acquisitionperformancetargets.Asoftheacquisitiondate,we includedanestimateofthefairvalueoftheseearn-outpaymentsintheaggregatepurchaseconsideration.

The2023Acquisitionswerenotmaterial,individuallyorintheaggregate,totheConsolidatedFinancial Statements.

AccountingGuidanceUpdates

RefertoNote1,“SummaryofSignificantAccountingPolicies,”totheConsolidatedFinancialStatementsforthis information.

CashFlow

(Inmillions)202420232022

Netcashprovidedbyoperatingactivities$938.8$826.0$961.0 Purchasesofproperty,plantandequipment(208.8)(265.3)(278.1) Purchasesofsoftwareandotherdeferredcharges(31.0)(19.8)(20.4) Proceedsfromcompany-ownedlifeinsurancepolicies—48.1— PurchasesofArgentineBlueChipSwapsecurities(34.2)—— ProceedsfromsalesofArgentineBlueChipSwapsecurities24.0—— Proceedsfromsalesofproperty,plantandequipment.61.02.3 Proceedsfrominsuranceandsales(purchases)ofinvestments,net10.11.91.9 Paymentsforcertainacquisition-relatedtransactioncosts——.6 Adjustedfreecashflow$699.5$591.9$667.3

In2024,netcashprovidedbyoperatingactivitiesincreasedcomparedto2023primarilyduetohighernetincome, lowerincentivecompensationpaymentsandlowertaxpayments,netofrefunds,partiallyoffsetbychangesin operationalworkingcapitalandthesettlementpaymentfortheAdasalegalmatter.In2024,adjustedfreecashflow increasedcomparedto2023primarilyduetohighernetcashprovidedbyoperatingactivitiesandlowerpurchasesof property,plantandequipment,partiallyoffsetbylowerproceedsfromcompany-ownedlifeinsurancepolicies.

Outlook

Certainfactorsthatwebelievewillcontributetoour2025resultsaredescribedbelow.

•Weanticipatenetsalestoincrease,drivenbyvolumegrowthinboththeSolutionsGroupandMaterialsGroup reportablesegments.

•Weexpectanunfavorableimpacttoourfull-yearnetsalesandoperatingincomefromforeigncurrency translation,basedonrecentrates.

•Weanticipateincrementalsavingsfromrestructuringactions,netoftransitioncosts.

•Weexpectourfull-yeareffectivetaxratetobeinthemid-twentypercentrange.

IncomebeforeTaxes

(Inmillions,exceptpercentages)202420232022

Netsales$8,755.7$8,364.3$9,039.3

Costofproductssold6,225.06,086.86,635.1

Grossprofit2,530.72,277.52,404.2

Marketing,generalandadministrativeexpense1,415.31,313.71,330.8

Otherexpense(income),net71.6180.9(.6)

Interestexpense117.0119.084.1

Othernon-operatingexpense(income),net(26.7)(30.8)(9.4)

Incomebeforetaxes$953.5$694.7$999.3 Grossprofitmargin28.9%27.2%26.6%

GrossProfitMargin

Grossprofitmarginin2024increasedcomparedto2023primarilyduetobenefitsfromproductivityinitiatives, includingmaterialre-engineeringandsavingsfromrestructuringactions,netoftransitioncosts,andhighervolume, partiallyoffsetbyhigheremployee-relatedcosts.

Grossprofitmarginin2023increasedcomparedto2022primarilyduetobenefitsfromproductivityinitiatives, includingtemporarycost-savingactions,materialre-engineeringandsavingsfromrestructuringactions,netoftransition costs,andthenetimpactofpricingandrawmaterialinputscosts,partiallyoffsetbylowervolumeandhigheremployeerelatedcosts.

Marketing,GeneralandAdministrativeExpense

Marketing,generalandadministrativeexpenseincreasedin2024comparedto2023primarilyduetohigher employee-relatedcosts,partiallyoffsetbybenefitsfromproductivityinitiatives,includingsavingsfromrestructuring actions,netoftransitioncosts.

Marketing,generalandadministrativeexpensedecreasedin2023comparedto2022primarilyduetobenefits fromproductivityinitiatives,includingtemporarycost-savingactionsandsavingsfromrestructuringactions,netof transitioncosts,partiallyoffsetbyhigheremployee-relatedcostsandgrowthinvestments.

OtherExpense(Income),Net

(Inmillions)202420232022

Otherexpense(income),netbytype Restructuringcharges,netofreversals: Severanceandrelatedcosts,netofreversals$35.4$70.8$7.6 Assetimpairmentandleasecancellationcharges6.58.6.1

Otheritems:

LossesfromArgentinepesoremeasurementandBlueChipSwap transactions16.429.9— (Gain)lossonventureinvestments19.21.5(13.5) Outcomesoflegalmattersandsettlements,net(6.2)64.36.3 Transactionandrelatedcosts.35.3.3 (Gain)lossonsalesofassets—.5(1.4) Otherexpense(income),net$71.6$180.9$(.6)

RefertoNote13,“CostReductionActions,”totheConsolidatedFinancialStatementsformoreinformation regardingrestructuringcharges,netofreversals.

28 2024AnnualReport | AveryDennisonCorporation

RefertoNote9,“FairValueMeasurements,”totheConsolidatedFinancialStatementsformoreinformation regarding(gain)lossonventureinvestments.

RefertoNote8,“Contingencies,”andNote15,“SegmentandDisaggregatedRevenueInformation,”tothe ConsolidatedFinancialStatementsformoreinformationregardingoutcomesoflegalmattersandsettlements,net.

InterestExpense

Interestexpensedecreasedin2024comparedto2023primarilyduetoadecreaseincommercialpaper borrowings,partiallyoffsetbyhigherdebtbalances.

Interestexpenseincreasedin2023comparedto2022primarilyasaresultofhigherinterestratesonborrowings andhigherdebtbalances.

OtherNon-OperatingExpense(Income),Net

Othernon-operatingincomedecreasedin2024comparedto2023duetolowerinterestincome,primarilyin Argentina.

Othernon-operatingincomeincreasedin2023comparedto2022duetohigherinterestincome,primarilyin Argentina.

NetIncomeandEarningsperShare

(Inmillions,exceptpercentagesandpershareamounts)202420232022 Incomebeforetaxes$953.5$694.7$999.3 Provisionforincometaxes248.6191.7242.2

ProvisionforIncomeTaxes

Oureffectivetaxratein2024decreasedcomparedto2023primarilyduetolowernon-deductibleexpenses resultingfromtheimpactoftheArgentinepesoremeasurementlossandlowertaxchargesfromtherecognitionof uncertaintaxpositionsincertainforeignjurisdictions,partiallyoffsetbyhighertaxchargesfromvaluationallowances. Oureffectivetaxratein2023increasedcomparedto2022primarilyduetohighernon-deductibleexpensesresulting fromtheimpactoftheArgentinepesoremeasurementloss,highertaxchargesfromtherecognitionofuncertaintax positionsincertainforeignjurisdictions,andlowerU.S.federalreturn-to-provisionbenefits.

Oureffectivetaxratecanvaryfromperiodtoperiodduetoavarietyoffactors,suchaschangesinourmixof earningsincountrieswithdifferingstatutorytaxrates,changesinourtaxreserves,settlementsofincometaxaudits, changesintaxlawsandregulations,return-to-provisionadjustments,taximpactsrelatedtostock-basedpayments,and ourexecutionoftaxplanningstrategies.

RefertoNote14,“TaxesBasedonIncome,”totheConsolidatedFinancialStatementsformoreinformation.

RESULTSOFOPERATIONSBYREPORTABLESEGMENT

Duringthefourthquarterof2024,wemodifiedoursegmentperformancemeasuretoexcludeotherexpense (income),net.ThesechangesalignwithhowourCODMevaluatessegmentperformanceandallocatesresources.Prior periodshavebeenconformedtothecurrentperiodpresentation.Segmentadjustedoperatingincomeisdefinedas incomebeforetaxesadjustedforotherexpense(income),net;interestexpense,othernon-operatingexpense(income), net;andotheritems.

RefertoNote15,“SegmentandDisaggregatedRevenueInformation,”totheConsolidatedFinancialStatements formoreinformation.

MaterialsGroup (Inmillions)202420232022

Netsalesincludingintersegmentsales$6,175.8$5,968.4$6,632.2 Lessintersegmentsales(162.8)(157.1)(137.1) Netsales$6,013.0$5,811.3$6,495.1

Segmentadjustedoperatingincome(1)

(1) Segmentadjustedoperatingincomeexcludedchargesassociatedwithrestructuring actionsandrelatedcostsinallyears,lossonventureinvestmentin2024,lossesfrom ArgentinepesoremeasurementandBlueChipSwaptransactionsandoutcomesof legalmattersandsettlements,net,in2024and2023,lossonsaleofassetsin2023, andgainonventureinvestmentin2022.Theseitemswereincludedin“Other expense(income),net.”$40.4$88.3$(13.4)

NetSales

Thefactorsimpactingreportednetsaleschangeareshowninthetablebelow.

20242023

Reportednetsaleschange 4%(11)% Foreigncurrencytranslation——

Saleschangeex.currency(1)

(1) Totalsmaynotsumduetorounding.

In2024,netsalesincreasedonanorganicbasiscomparedtotheprioryearduetohighervolume,partiallyoffset bytheimpactofrawmaterialdeflation-relatedpricereductions.Onanorganicbasis,netsalesincreasedbylowsingle digitratesinNorthAmericaandWesternEuropeandahighsingledigitrateinemergingmarkets.

In2023,netsalesdecreasedonanorganicbasiscomparedtotheprioryearduetolowervolumedrivenprimarily byinventorydestocking,partiallyoffsetbytheimpactofpricingactions.Onanorganicbasis,netsalesdecreasedbya lowdouble-digitrateinNorthAmerica,ahighteensrateinWesternEuropeandahighsingledigitrateinemerging markets.

SegmentAdjustedOperatingIncome

Segmentadjustedoperatingincomeincreasedin2024comparedtothesameperiodin2023primarilydueto highervolumeandbenefitsfromproductivityinitiatives,includingmaterialre-engineeringandsavingsfromrestructuring actions,netoftransitioncosts,partiallyoffsetbyhigheremployee-relatedcostsandthenetimpactofpricingandraw materialinputcosts.

Segmentadjustedoperatingincomedecreasedin2023comparedtothesameperiodin2022primarilydueto lowervolume,partiallyoffsetbybenefitsfromproductivityinitiatives,includingtemporarycost-savingactions,material re-engineeringandsavingsfromrestructuringactions,netoftransitioncosts,andthenetimpactofpricingandraw materialinputcosts.

SolutionsGroup

(Inmillions)202420232022 Netsalesincludingintersegmentsales$2,795.0$2,588.5$2,581.6 Lessintersegmentsales(52.3)(35.5)(37.4) Netsales$2,742.7$2,553.0$2,544.2

Segmentadjustedoperatingincome(1)

(1) Segmentadjustedoperatingincomeexcludedchargesassociatedwithrestructuring actions,outcomesoflegalmattersandsettlements,net,andtransactionandrelated costsinallyears,lossonventureinvestmentsin2024and2023,andgainonsales ofassetsin2022.Theseitemswereincludedin“Otherexpense(income),net.”$30.8$86.3$7.8

NetSales

Thefactorsimpactingreportednetsaleschangeareshowninthetablebelow.

20242023 Reportednetsaleschange

(1) Totalsmaynotsumduetorounding.

In2024,onanorganicbasis,netsalesincreasedbyalowsingledigitrateinhigh-valuecategoriesanda low-doubledigitrateinthebasebusinesscomparedtotheprioryear.Company-wide,onanorganicbasis,salesof intelligentlabelsincreasedbyahighsingledigitratecomparedtotheprioryear.

In2023,onanorganicbasis,netsalesincreasedbyahighsingledigitrateinhigh-valuecategoriesanddecreased byalowdouble-digitrateinthebasebusinesscomparedtotheprioryear.Company-wide,onanorganicbasis,salesof intelligentlabelsincreasedbyalowdouble-digitratecomparedtotheprioryear.

SegmentAdjustedOperatingIncome

Segmentadjustedoperatingincomeincreasedin2024comparedto2023primarilyduetohighervolumeand benefitsfromproductivityinitiatives,includingsavingsfromrestructuringactions,netoftransitioncosts,partiallyoffset byhigheremployee-relatedcostsandgrowthinvestments.

Segmentadjustedoperatingincomedecreasedin2023comparedto2022primarilyduetohigheremployeerelatedcosts,lowervolume,growthinvestmentsandtheimpactofunfavorableforeigncurrencytranslation,partially offsetbybenefitsfromproductivityinitiatives,includingtemporarycost-savingactionsandsavingsfromrestructuring actions,netoftransitioncosts.

FINANCIALCONDITION

Liquidity

OperatingActivities

(Inmillions)202420232022

Netincome$704.9$503.0$757.1

Depreciation197.1187.4177.4

Amortization115.1111.0113.3

Provisionforcreditlossesandsalesreturns47.449.950.1

Stock-basedcompensation28.722.347.4

Deferredtaxesandothernon-cashtaxes(18.5)(24.4)18.4

Othernon-cashexpenseandloss(incomeandgain),net67.237.123.5

Tradeaccountsreceivable(107.3)(16.7)(22.1) Inventories(90.7)111.7(140.7)

Accountspayable106.7(87.6)68.2

Taxesonincome40.2(18.7)18.9

Otherassets(48.0)37.715.3

Otherliabilities(104.0)(86.7)(165.8)

Netcashprovidedbyoperatingactivities$938.8$826.0$961.0

In2024,cashflowprovidedbyoperatingactivitiesincreasedcomparedto2023primarilyduetohighernet income,lowerincentivecompensationpaymentsandlowertaxpayments,netofrefunds,partiallyoffsetbychangesin operationalworkingcapitalandthesettlementpaymentfortheAdasalegalmatter.

In2023,cashflowprovidedbyoperatingactivitiesdecreasedcomparedto2022primarilyduetolowernetincome andhighertaxpayments,netofrefunds,partiallyoffsetbychangesinoperationalworkingcapitalandlowerincentive compensationpayments.

InvestingActivities

(Inmillions)202420232022

Purchasesofproperty,plantandequipment$(208.8)$(265.3)$(278.1) Purchasesofsoftwareandotherdeferredcharges(31.0)(19.8)(20.4) Proceedsfromcompany-ownedlifeinsurancepolicies—48.1— PurchasesofArgentineBlueChipSwapsecurities(34.2)—— ProceedsfromsalesofArgentineBlueChipSwapsecurities24.0—— Proceedsfromsalesofproperty,plantandequipment.61.02.3 Proceedsfrominsuranceandsales(purchases)ofinvestments,net10.11.91.9 Proceedsfromsaleofventureinvestment——1.1 Paymentsforacquisitions,netofcashacquired,andventure investments(3.8)(224.9)(39.5) Netcashusedininvestingactivities$(243.1)$(459.0)$(332.7)

PurchasesofProperty,PlantandEquipment

In2024,inourSolutionsGroupreportablesegment,weprimarilyinvestedinbuildingsandequipmenttosupport growthincertaincountriesinAsiaPacific,includingChinaandMalaysia,theU.S.andcertaincountriesinLatinAmerica, primarilyMexico;inourMaterialsGroupreportablesegment,weprimarilyinvestedinbuildingsandequipmenttosupport growthintheU.S.,andcertaincountriesinEurope,primarilyFrance,andAsiaPacific,primarilyChina.In2023,inour SolutionsGroupreportablesegment,weprimarilyinvestedinbuildingsandequipmenttosupportgrowthincertain countriesinAsiaPacific,primarilyMalaysia,theU.S.andcertaincountriesinLatinAmerica,primarilyMexico;inour MaterialsGroupreportablesegment,weprimarilyinvestedinbuildingsandequipmenttosupportgrowthintheU.S.and certaincountriesinEurope,primarilyFrance,andAsiaPacific,primarilyChina.In2022,inourSolutionsGroupreportable 32 2024AnnualReport | AveryDennisonCorporation

segment,weprimarilyinvestedinbuildingsandequipmenttosupportgrowthincertaincountriesinAsiaPacific, includingMalaysia,ChinaandVietnam,andtheU.S.;inourMaterialsGroupreportablesegment,weprimarilyinvestedin buildingsandequipmentintheU.S.andcertaincountriesinEurope,primarilyFrance,andLatinAmerica,primarilyBrazil.

PurchasesofSoftwareandOtherDeferredCharges

In2024,2023and2022,weinvestedininformationtechnologyupgradesworldwide.

ProceedsfromCompany-OwnedLifeInsurancePolicies

In2023,weutilizedapproximately$48millionofthecashsurrendervalueavailableunderourcompany-owned lifeinsurancepolicies.

PurchasesandProceedsfromArgentineBlueChipSwapSecurities

In2024,weenteredintoBlueChipSwaptransactionsthatresultedinlossesofapproximately$10million.Refer toNote16,“SupplementalFinancialInformation,”totheConsolidatedFinancialStatementsformoreinformation.

ProceedsfromInsuranceandSales(Purchases)Investments,net

In2024,wereceivedapproximately$8millionofinsuranceproceedsforlossesrelatedtodamagedproperty,plant andequipment.

PaymentsforAcquisitions,NetofCashAcquired,andVentureInvestments

Wepaidconsideration,netofcashacquired,ofapproximately$223millionforthe2023Acquisitionsand $30millionfortheacquisitionswecompletedin2022.Wefundedthe2023Acquisitionsandtheacquisitionswe completedin2022usingcashandcommercialpaperborrowings.Wealsomadecertainventureinvestmentsin2024, 2023and2022.

RefertoNote2,“BusinessAcquisitions,”totheConsolidatedFinancialStatementsformoreinformation.

FinancingActivities

(Inmillions)202420232022

Netincrease(decrease)inborrowingswithmaturitiesofthree monthsorless$(269.0)$(36.6)$34.6 Additionallong-termborrowings539.2394.9— Repaymentsoflong-termdebtandfinanceleases(308.1)(255.9)(6.3) Dividendspaid(277.5)(256.7)(238.9) Sharerepurchases(247.5)(137.5)(379.5) Net(taxwithholding)proceedsrelatedtostock-basedcompensation(8.4)(23.8)(25.1) Other (4.8)(1.6)—

Netcashusedinfinancingactivities$(576.1)$(317.2)$(615.2)

BorrowingsandRepaymentofDebt

During2024,2023and2022,ourcommercialpaperborrowingsfundedvariousactivities,includingrepaymentsof long-termdebt,acquisitions,dividendpayments,sharerepurchases,capitalexpendituresandothergeneralcorporate purposes.

InNovember2024,weissued €500millionofseniornotes,dueNovember4,2034,whichbearaninterestrateof 3.750%peryear,payableannuallyinarrears.Ournetproceedsfromthisissuance,afterdeductingunderwriting discountsandofferingexpenses,wereapproximately €495million($539million),whichweintendtousetorepayour €500millionofseniornotesmaturinginMarch2025andforgeneralcorporatepurposes.

InAugust2024,werepaidour$300millionofseniornotesatmaturityusingcashflowsfromoperationsand commercialpaperborrowings.

InMarch2023,weissued$400millionofseniornotes,dueMarch15,2033,whichbearaninterestrateof 5.750%peryear,payablesemiannuallyinarrears.Ournetproceedsfromthisissuance,afterdeductingunderwriting discountsandofferingexpenses,were$394.9million,whichweusedtorepayindebtednessunderourcommercialpaper programsandour$250millionofseniornotesthatmaturedonApril15,2023.

RefertoNote4,“Debt”totheConsolidatedFinancialStatementsformoreinformation.

DividendsPaid

Wepaiddividendspershareof$3.45,$3.18and$2.93in2024,2023and2022,respectively.InApril2024,we increasedourquarterlydividendrateto$0.88pershare,representinganincreaseofapproximately9%fromourprevious quarterlydividendrateof$0.81pershare.InApril2023,weincreasedourquarterlydividendto$0.81pershare, representinganincreaseofapproximately8%fromourpreviousdividendrateof$0.75pershare.

ShareRepurchases

Fromtimetotime,ourBoardauthorizestherepurchaseofsharesofouroutstandingcommonstock.Repurchased sharesmaybereissuedunderourlong-termincentiveplanorusedforothercorporatepurposes.In2024,2023and 2022,werepurchasedapproximately1.2million,0.8millionand2.2millionsharesofourcommonstock,respectively.

InApril2022,ourBoardauthorizedtherepurchaseofsharesofourcommonstockwithafairmarketvalueofupto $750million,excludinganyfees,commissionsorotherexpensesrelatedtosuchpurchasesandinadditiontoanyamount outstandingunderourpreviousBoardauthorization.Sharesofourcommonstockintheaggregateamountof $346.9millionremainedauthorizedforrepurchaseunderthisBoardauthorizationasofDecember28,2024.Board authorizationsremainineffectuntilsharesintheamountauthorizedthereunderhavebeenrepurchased.

Net(TaxWithholding)ProceedsRelatedtoStock-BasedCompensation

Approximately0.1millionstockoptionswereexercisedin2024,resultinginproceedsofapproximately $10million.RefertoNote12,“Long-TermIncentiveCompensation,”totheConsolidatedFinancialStatementsformore information.

AnalysisofSelectedBalanceSheetAccounts

Long-livedAssets

Property,plantandequipment,net,decreasedbyapproximately$39millionto$1.59billionatyear-end2024, whichprimarilyreflecteddepreciationexpenseandtheimpactofforeigncurrencytranslation,partiallyoffsetby purchasesofproperty,plantandequipment.

Goodwilldecreasedbyapproximately$37millionto$1.98billionatyear-end2024,whichprimarilyreflectedthe impactofforeigncurrencytranslation.

Otherintangiblesresultingfrombusinessacquisitions,net,decreasedbyapproximately$94millionto $755.3millionatyear-end2024,primarilyreflectingcurrentyearamortizationexpense.

RefertoNote3,“GoodwillandOtherIntangiblesResultingfromBusinessAcquisitions,”totheConsolidated FinancialStatementsformoreinformation.

Otherassetsincreasedbyapproximately$88millionto$897.3millionatyear-end2024,primarilyreflecting highercapitalizedimplementationcostsassociatedwithourcloudcomputingarrangementsandhigheroperatinglease assets.

Long-termRetirementBenefitsandOtherLiabilities

Otherlong-termretirementbenefitsandotherliabilitiesdecreasedbyapproximately$66millionto$434.6million atyear-end2024,primarilyreflectingthesettlementpaymentfortheAdasalegalmatter.

Shareholders’EquityAccounts

Thebalanceofourshareholders’equityincreasedbyapproximately$184millionto$2.31billionatyear-end 2024.RefertoNote11,“SupplementalEquityandComprehensiveIncomeInformation,”totheConsolidatedFinancial Statementsformoreinformation.

34 2024AnnualReport | AveryDennisonCorporation

ImpactofForeignCurrencyTranslation

(Inmillions)

20242023

Changeinnetsales$(33)$(58)

In2024,internationaloperationsgeneratedapproximately70%ofournetsales.Ourfutureresultsaresubjectto changesingeopolitical,socialandeconomicconditionsintheregionsinwhichweoperateandtheimpactoffluctuations inforeigncurrencyexchangerates.

Theunfavorableimpactofforeigncurrencytranslationonnetsalesin2024comparedto2023wasprimarily relatedtosalesinChinaandBrazil,partiallyoffsetbythefavorableimpactofeuro-denominatedsales.

EffectofForeignCurrencyTransactions

Theimpactonnetincomefromforeigncurrencytransactionsislargelymitigatedbecausethecostsofourproducts aregenerallydenominatedinthesamecurrenciesinwhichtheyaresold.Inaddition,toreduceourincomeandcashflow exposuretotransactionsinforeigncurrencies,weenterintoforeigncurrencyexchangeforward,optionandswap contractswhereavailableandappropriate.RefertoNote5,“FinancialInstruments,”totheConsolidatedFinancial Statementsformoreinformation.

During2024and2023,theArgentinepesodevaluedsignificantlycomparedtotheU.S.dollar,resultingin remeasurementlossesofapproximately$16millionand$30million,respectively,whichwasincludedin“Otherexpense (income),net”intheConsolidatedStatementsofIncome.The2024lossesincludedBlueChipSwaptransactionsthat resultedinlossesofapproximately$10million.RefertoNote16,“SupplementalFinancialInformation,”tothe ConsolidatedFinancialStatementsformoreinformation.

AnalysisofSelectedFinancialRatios

Weutilizethefinancialratiosdiscussedbelowtoassessourfinancialconditionandoperatingperformance.We believethisinformationassistsourinvestorsinunderstandingthefactorsimpactingourcashflowotherthannetincome andcapitalexpenditures.

OperationalWorkingCapitalRatio

Operationalworkingcapital,asapercentageofannualizedcurrent-quarternetsales,isreconciledtoworking capitalbelow.Ourobjectiveistominimizeourinvestmentinoperationalworkingcapital,asapercentageofannualized current-quarternetsales,tomaximizeourcashflowandreturnoninvestment.Operationalworkingcapital,asa percentageofannualizedcurrent-quarternetsales,in2024wascomparablewith2023.Furtherinformationregarding thecomponentsofoperationalworkingcapitalisprovidedbelow.

(Inmillions,exceptpercentages)20242023 (A)Workingcapital$216.1$96.5

Reconcilingitems:

Cashandcashequivalents(329.1)(215.0) Othercurrentassets(305.3)(245.4)

Short-termborrowingsandcurrentportionoflong-termdebtandfinanceleases592.3622.2 Currentincometaxespayableandothercurrentaccruedliabilities929.6800.2 (B)Operationalworkingcapital$1,103.6$1,058.5 (C)Fourth-quarternetsales,annualized$8,742.8$8,442.0

Operationalworkingcapital,asapercentageofannualizedcurrent-quarternetsales (B)÷(C)

AccountsReceivableRatio

Theaveragenumberofdayssalesoutstandingwas61daysinboth2024and2023,calculatedusingtheaccounts receivablebalanceatyear-enddividedbytheaveragedailysalesinthefourthquarterof2024and2023,respectively.

| 2024AnnualReport 35

InventoryRatio

Averageinventoryturnoverwas6.4in2024comparedto6.6in2023,calculatedusingtheannualizedfourthquartercostofproductssoldin2024and2023,respectively,anddividedbytheinventorybalanceattherespective year-end.Thedecreaseinaverageinventoryturnoverprimarilyreflectedhigherinventorybalances,partiallyoffsetbythe impactofforeigncurrencytranslation.

AccountsPayableRatio

Theaveragenumberofdayspayableoutstandingwas77daysinboth2024and2023,calculatedusingthe accountspayablebalanceatyear-enddividedbytheannualizedfourth-quartercostofproductssoldin2024and2023, respectively.

CapitalResources

Capitalresourcesincludecashflowsfromoperations,cashandcashequivalentsanddebtfinancing,including accesstocommercialpaperborrowingssupportedbyourrevolvingcreditfacility(the“Revolver”).Weusethese resourcestofundouroperationalneeds.

Atyear-end2024,wehadcashandcashequivalentsof$329.1millionheldinaccountsatthird-partyfinancial institutionsinnumerouslocationsthroughouttheworld.Atyear-end2024,themajorityofourcashandcashequivalents washeldbyourforeignsubsidiaries,primarilyintheAsiaPacificregion.

TomeetourU.S.cashrequirements,wehaveseveralcost-effectiveliquidityoptionsavailable.Theseoptions includeborrowingfundsatreasonablerates,includingborrowingsfromourforeignsubsidiaries,andrepatriatingforeign earningsandprofits.However,ifweweretorepatriateforeignearningsandprofits,aportionwouldbesubjecttocash paymentsofwithholdingtaxesimposedbyforeigntaxauthorities.AdditionalU.S.taxesmayalsoresultfromtheimpact offoreigncurrencyfluctuationsrelatedtotheseearningsandprofits.

InJune2024,weenteredintoaCreditAgreement(the“CreditAgreement”)relatedtoourRevolvertoborrowup toanaggregateof$1.2billionthroughitsmaturitydateofJune26,2029.TheRevolverrefinancedthepriorrevolving creditfacilityundertheFifthAmendedandRestatedCreditAgreementdatedasofFebruary13,2020,asamended. PursuanttotheCreditAgreement,thecommitmentsundertheRevolvermaybeincreasedbyupto$600million,subject tolenderapprovalsandcustomaryrequirements.Undercertaincircumstances,wemayrequestthatthecommitments undertheRevolverbeextendedforone-yearperiodsinaccordancewiththetermsandconditionsoftheCredit Agreement.WeusetheRevolverasaback-upfacilityforourcommercialpaperprogramandforothercorporate purposes.

TheRevolvercontainsafinancialcovenantthatrequiresustomaintainamaximumleverageratio(calculatedasa ratioofconsolidateddebtminusunrestrictedcashandcashequivalentsinexcessof$50milliontoconsolidatedEBITDA asdefinedintheagreement)ofnotmorethan3.50to1.00;providedthat,intheeventofanacquisitionbyusthat exceeds$250million,themaximumleverageratioincreasesto4.00to1.00forthefiscalquarterinwhichtheacquisition occursandthethreefiscalquartersimmediatelyfollowingthatfiscalquarter.AsofDecember28,2024,ourratiowas substantiallybelowthemaximumratioallowedbytheRevolver.AsofDecember30,2023,ourratiowassubstantially belowthemaximumrateallowedbyourpreviousrevolvingcreditfacility.

InadditiontotheRevolver,wehaveshort-termlinesofcreditavailableinvariouscountriesofapproximately $261millionintheaggregateatDecember28,2024.Theselinesmaybecancelledatanytimebyusortheissuingbanks. Borrowingsunderourshort-termlinesofcreditwerenotmaterialasofDecember28,2024andDecember30,2023.

Weareexposedtofinancialmarketriskresultingfromchangesininterestandforeigncurrencyexchangerates, andtopossibleliquidityandcreditrisksofourcounterparties.

Wecurrentlyanticipateusingthenetproceedsfromthe €500millionofseniornotesweissuedinthefourth quarterof2024,cashflowsfromoperationsandcommercialpaperborrowingstorepay €500millionofseniornotes, $25millionofmedium-termnotesand$5millionofmedium-termnotesmaturinginthefirst,secondandthirdquartersof 2025,respectively.

CapitalfromDebt

Thecarryingvalueofourtotaldebtdecreasedbyapproximately$92millionto$3.15billionatyear-end2024from year-end2023,primarilyduetotherepaymentofour$300millionofseniornotesthatmaturedinAugust2024,anet decreaseincommercialpaperborrowingsandtherevaluationofoureuro-denominatedseniornotes,partiallyoffsetby ourissuanceof €500millionofseniornotesinNovember2024.

Creditratingsareasignificantfactorinourabilitytoraiseshort-andlong-termfinancing.Thecreditratings assignedtoourcompanyalsoimpacttheinterestrateswepayandouraccesstocommercialpaper,creditfacilities,and otherborrowings.Adowngradeofourshort-termcreditratingscouldimpactourabilitytoaccesscommercialpaper markets.Ifouraccesstocommercialpapermarketsweretobecomelimited,theRevolverandourothercreditfacilities wouldbeavailabletomeetourshort-termfundingrequirements.Whendeterminingourcreditrating,webelievethat ratingagenciesprimarilyconsiderourcompetitiveposition,businessoutlook,consistencyofcashflows,debtleveland liquidity,geographicfootprintandmanagementteam.Weremaincommittedtomaintaininganinvestmentgraderating.

FairValueofDebt

Theestimatedfairvalueofourlong-termdebtisprimarilybasedonthecreditspreadaboveU.S.Treasury securitiesoreurogovernmentbondsecurities,asapplicable,onnoteswithsimilarrates,creditratingsandremaining maturities.Thefairvalueofshort-termborrowings,whichincludescommercialpaperissuancesandshort-termlinesof credit,approximatestheircarryingvaluegiventheirshortduration.Thefairvalueofourtotaldebtwas$3.01billionat December28,2024and$3.11billionatDecember30,2023.Fairvalueamountsweredeterminedbasedprimarilyon Level2inputs.RefertoNote1,“SummaryofSignificantAccountingPolicies,”formoreinformation.

ContractualObligations,CommitmentsandOff-BalanceSheetArrangements MaterialCashRequirementsatEndofYear2024

Wehaveshort-andlong-termmaterialcashrequirementsrelatedtoourcontractualobligationsthatariseinthe normalcourseofbusiness.Inadditiontoprincipalandinterestpaymentsonouroutstandingdebtobligations,our contractualobligationsprimarilyconsistofleasepayments.

RefertoNote4,“Debt,”totheConsolidatedFinancialStatementsforasummaryofourprincipalpaymentsfor short-termborrowingsandlong-termdebtobligationsasofDecember28,2024.Futureinterestpaymentsforlong-term debtasofDecember28,2024areapproximately$106millionin2025;$97millionin2026;$97millionin2027; $97millionin2028;$73millionin2029;and$243millionfrom2030throughmaturity.

RefertoNote7,“CommitmentsandLeases,”totheConsolidatedFinancialStatementsforasummaryofourlease obligationsasofDecember28,2024.

RefertoNote6,“PensionandOtherPostretirementBenefits,”totheConsolidatedFinancialStatementsfor informationregardingourdefinedbenefitpensionplancontributionsandfuturebenefitpayments,deferredcompensation planbenefitpaymentsandunfundedterminationindemnitybenefits.

RefertoNote12,“Long-termIncentiveCompensation,”totheConsolidatedFinancialStatementsforinformation regardingcash-basedawardstoemployeesunderoneofourlong-termincentivecompensationplans.

RefertoNote14,“TaxesBasedonIncome,”totheConsolidatedFinancialStatementsformoreinformation regardingourunrecognizedtaxbenefitsofapproximately$81million.

CRITICALACCOUNTINGESTIMATES

ThepreparationoffinancialstatementsinconformitywithGAAPrequiresourmanagementtomakeestimatesand assumptionsforthereportingperiodandasofthefinancialstatementdate.Theseestimatesandassumptionsaffectour reportedamountsofassetsandliabilities,disclosureofcontingentliabilities,andreportedamountsofrevenueand expense.Actualresultscoulddifferfromtheseestimates.

Criticalaccountingestimatesarethosethatareimportanttoourfinancialconditionandresults,andwhichrequire ustomakedifficult,subjectiveand/orcomplexjudgments.Criticalaccountingestimatescoveraccountingmattersthatare inherentlyuncertainbecausetheirfutureresolutionisunknown.Webelieveourcriticalaccountingestimatesinclude accountingforgoodwill,businesscombinations,pensionandpostretirementbenefits,taxesbasedonincomeandlongtermincentivecompensation.

Goodwill

Businesscombinationsareaccountedforusingtheacquisitionmethod,withtheexcessoftheacquisitioncostover thefairvalueofacquirednettangibleassetsandidentifiedintangibleassetsconsideredgoodwill.Asaresult,wedisclose goodwillseparatelyfromotherintangibleassets.Ourreportingunitsarecomposedofeitheradiscretebusinessoran aggregationofbusinesseswithsimilareconomiccharacteristics.

Weperformourannualimpairmenttestofgoodwillduringthefourthquarter.Certainfactorsmaycauseusto performanimpairmenttestpriortothefourthquarter,includingsignificantunderperformanceofabusinessrelativeto expectedoperatingresults,significantadverseeconomicandindustrytrends,significantdeclineinourmarket capitalizationforanextendedperiodoftimerelativetonetbookvalue,oradecisiontodivestaportionofareportingunit. Inperformingimpairmenttests,wehavetheoptiontofirstassessqualitativefactorstodeterminewhetheritisnecessary toperformaquantitativeassessmentforgoodwillimpairment.Ifthequalitativeassessmentindicatesthatitismorelikely-than-notthatthefairvalueofareportingunitislessthanitscarryingvalue,weperformaquantitativeassessment.

Aquantitativeassessmentprimarilyconsistsofusingthepresentvalue(discountedcashflow)methodto determinethefairvalueofreportingunitswithgoodwill.Wecomparethefairvalueofeachreportingunittoitscarrying amount,and,totheextentthecarryingamountexceedstheunit’sfairvalue,werecognizeanimpairmentofgoodwillfor theexcessuptotheamountofgoodwillofthatreportingunit.

Inconsultationwithoutsidespecialists,weestimatethefairvalueofourreportingunitsusingvariousvaluation techniques,withtheprimarytechniquebeingadiscountedcashflowanalysis.Adiscountedcashflowanalysisrequires ustomakevariousassumptions,includingareportingunit’sforecastedsales,operatingmarginsandgrowthrates,as wellasdiscountrates.Ourassumptionsaboutdiscountratesarebasedontheweightedaveragecostofcapitalfor comparablecompanies.Ourassumptionsaboutsales,operatingmarginsandgrowthratesarebasedonourforecasts, businessplans,economicprojections,anticipatedfuturecashflows,andmarketplacedata.Wealsomakeassumptions forvaryingperpetualgrowthratesforperiodsbeyondourlong-termbusinessplanperiod.Webaseourfairvalue estimatesonprojectedfinancialinformationandassumptionsthatwebelievearereasonable.However,actualfuture resultsmaydiffermateriallyfromtheseestimatesandprojections.Thevaluationmethodologyweusetoestimatethefair valueofreportingunitsrequiresinputsandassumptionsthatreflectcurrentmarketconditions,aswellastheimpactof plannedbusinessandoperationalstrategiesthatrequiremanagementjudgment.Theestimatedfairvaluecouldincrease ordecreasedependingonchangesintheinputsandassumptions.

Inourannualimpairmenttestinthefourthquarterof2024,thegoodwillofallreportingunitsinourMaterials GroupandSolutionsGroupreportablesegmentsweretestedutilizingaqualitativeassessment.Basedonthis assessment,wedeterminedthatthefairvaluesofthesereportingunitsweremore-likely-than-notgreaterthantheir respectivecarryingvalues.Therefore,thegoodwillofourreportingunitswasnotimpaired.

BusinessCombinations

TheresultsofacquiredbusinessesareincludedinourConsolidatedFinancialStatementsfromtheiracquisition date.Assetsandliabilitiesofanacquiredbusinessarerecordedattheirestimatedfairvaluesontheacquisitiondate.We engagethird-partyvaluationspecialiststoassistusindeterminingthesefairvalueswherenecessary.Anyexcess considerationoverthefairvalueofassetsacquiredandliabilitiesassumedisrecognizedasgoodwill.

Theallocationofpurchasepricerequiresmanagementtomakesignificantestimatesandassumptions.Whilewe believeourassumptionsandestimatesarereasonable,theyareinherentlyuncertainandbasedinpartonourexperience, marketconditions,ourprojectionsoffutureperformance,andinformationobtainedfrommanagementoftheacquired companies.Criticalestimatesinclude,butarenotlimitedto,thefollowing:

•Futurerevenueandprofitmargins;

•Royaltyrates;

•Discountrates;

•Customerretentionrates;

•Technologymigrationcurves;and

•Usefullivesassignedtoacquiredintangibleassets.

Acquiredidentifiablefinite-livedintangibleassetsareamortizedonastraight-linebasistomarketing,generaland administrativeexpenseovertheirrespectiveestimatedusefullives.

PensionandPostretirementBenefits

Theassumptionsweuseindeterminingprojectedbenefitobligationsandthefairvalueofplanassetsforour definedbenefitpensionplansandotherpostretirementbenefitplansareevaluatedbymanagementinconsultationwith outsideactuaries.Intheeventthatwedeterminethatchangesarewarrantedintheassumptionsweuse,suchasthe discountrate,expectedlong-termrateofreturnorhealthcarecosts,futurepensionandpostretirementbenefitexpenses couldincreaseordecrease.Duetochangesinmarketconditionsorparticipantpopulation,theactuarialassumptionswe usemaydifferfromactualresults,whichcouldhaveasignificantimpactonourpensionandpostretirementliabilitiesand relatedcosts.

DiscountRate

Inconsultationwithouractuaries,weannuallyreviewanddeterminethediscountratestouseinvaluingour postretirementobligations.Theassumeddiscountratesforournon-U.S.pensionplansreflectmarketratesforhigh qualitycorporatebondscurrentlyavailable.Ourdiscountratesaredeterminedbyevaluatingyieldcurvesconsistingof largepopulationsofhighqualitycorporatebonds.Theprojectedpensionbenefitpaymentstreamsarethenmatchedwith thebondportfoliostodeterminearatethatreflectstheliabilitydurationuniquetoourpensionandpostretirementbenefit plans.AsofDecember28,2024,a0.25%increaseinthediscountratesassociatedwithournon-U.S.planswouldhave decreasedouryear-endprojectedbenefitobligationbyapproximately$27millionandwouldnothaveasignificant impactonexpectedperiodicbenefitcostforthecomingyear.Conversely,a0.25%decreaseinthediscountrates associatedwithournon-U.S.planswouldhaveincreasedouryear-endprojectedbenefitobligationbyapproximately $27millionandwouldnothaveasignificantimpactonexpectedperiodicbenefitcostforthecomingyear.

Weusethefullyieldcurveapproachtoestimatetheserviceandinterestcostcomponentsofnetperiodicbenefit costforourpensionandotherpostretirementbenefitplans.Usingthisapproach,weapplymultiplediscountratesfroma yieldcurvecomposedoftheratesofreturnonseveralhundredhigh-quality,fixedincomecorporatebondsavailableat themeasurementdate.Webelievethisapproachprovidesamoreprecisemeasurementofserviceandinterestcostby aligningthetimingofplanliabilitycashflowstothecorrespondingratesontheyieldcurve.

Long-termReturnonPlanAssets

Wedeterminethelong-termrateofreturnassumptionforplanassetsbyreviewingthehistoricalandexpected returnsofboththeequityandfixedincomemarkets,takingintoaccountourassetallocation,thecorrelationbetween returnsinourassetclasses,andourmixofactiveandpassiveinvestments.Additionally,currentmarketconditions, includinginterestrates,areevaluatedandmarketdataisreviewedforreasonablenessandappropriateness.Anincrease ordecreaseof0.25%onthelong-termreturnonassetsassociatedwithournon-U.S.planswouldhavedecreasedor increasedourexpectedperiodicbenefitcostforthecomingyearbyapproximately$2million.

TaxesBasedonIncome

BecausewearesubjecttoincometaxintheU.S.andmultipleforeignjurisdictions,judgmentisrequiredin evaluatingandestimatingourworldwideprovisionforincometaxes,accrualsfortaxes,deferredtaxesandtaxpositions. OurprovisionforincometaxesisdeterminedusingtheassetandliabilityapproachinaccordancewithGAAP.Underthis approach,deferredtaxassetsrepresentamountsavailabletoreduceincometaxespayableinfutureyears.Theseassets arisebecauseoftemporarydifferencesbetweenthefinancialreportingandtaxbasesofassetsandliabilities,aswellas fromnetoperatinglossesandtaxcreditcarryforwards.Theseamountsareadjusted,asappropriate,toreflectchangesin taxratesexpectedtobeineffectwhenthetemporarydifferencesreverse.Weevaluatetherealizabilityofthesefuture taxdeductionsandcreditsbyassessingtheperiodoverwhichrecoverabilityisallowedbylawandtheadequacyoffuture expectedtaxableincomefromallsources,includingreversaloftaxabletemporarydifferences,forecastedoperating earningsandavailabletaxplanningstrategies.Ourassessmentofthesesourcesofincomereliesheavilyonestimates. Ourforecastedearningsbyjurisdictionaredeterminedbyhowweoperateourbusinessandanychangestoour operationsmayaffectoureffectivetaxrate.Forexample,ourfutureincometaxratecouldbeadverselyaffectedby earningsbeinglowerthananticipatedinjurisdictionsinwhichwehavesignificantdeferredtaxassetsthataredependent onsuchearningstoberealized.Weuseourhistoricalexperienceandoperatingforecaststoevaluateexpectedfuture taxableincome.Totheextentwedonotconsideritmore-likely-than-notthatadeferredtaxassetwillberecovered,a valuationallowanceisestablishedintheperiodwemakethatdetermination.

Wecalculateourcurrentanddeferredtaxprovisionbasedonestimatesandassumptionsthatcoulddifferfromthe actualresultsreflectedinincometaxreturnsfiledinsubsequentyears.Adjustmentsbasedonfiledreturnsarerecorded whenidentified.

Taxlawsandregulationsarecomplexandsubjecttodifferentinterpretationsbytaxpayersandgovernmental taxingauthorities.Wereviewourtaxpositionsquarterlyandadjustthebalancesifandasnewinformationbecomes available.Significantjudgmentisrequiredindeterminingourtaxexpenseandevaluatingourtaxpositions,including evaluatinguncertainties.Ourestimateofthepotentialoutcomeofanyuncertaintaxissueissubjecttoourassessmentof relevantfactsandcircumstancesexistingatthebalancesheetdate,takingintoconsiderationexistinglaws,regulations andpracticesofthegovernmentaltaxingauthoritiesexercisingjurisdictionoverouroperations.Werecognizeand measureouruncertaintaxpositionsfollowingthemore-likely-than-notthresholdforrecognitionandmeasurementfor taxpositionswetakeorexpecttotakeonataxreturn.

RefertoNote14,“TaxesBasedonIncome,”totheConsolidatedFinancialStatementsformoreinformation.

Long-TermIncentiveCompensation

ValuationofStock-BasedAwards

Webaseourstock-basedcompensationexpenseonthefairvalueofawards,adjustedforestimatedforfeitures, amortizedonastraight-linebasisovertherequisiteserviceperiodforstockoptionsandrestrictedstockunits(“RSUs”). Webasecompensationexpenseforperformanceunits(“PUs”)onthefairvalueofawards,adjustedforestimated forfeitures,andamortizedonastraight-linebasisastheseawardscliff-vestattheendoftherequisiteperformance period.Webasecompensationexpenserelatedtomarket-leveragedstockunits(“MSUs”)onthefairvalueofawards, adjustedforestimatedforfeitures,andamortizedonagraded-vestingbasisovertheirrespectiveperformanceperiods.

Compensationexpenseforawardswithamarketconditionasaperformanceobjective,whichincludesPUsand MSUs,isnotadjustediftheconditionisnotmet,aslongastherequisiteserviceperiodismet.

WedeterminethefairvalueofRSUsandthecomponentofPUsthatissubjecttotheachievementofa performanceobjectivebasedonafinancialperformanceconditionbasedonthefairmarketvalueofourcommonstockas ofthedateofthegrant,adjustedforforegonedividends.OvertheperformanceperiodofthePUs,theestimatednumber ofsharesofourcommonstockissuableuponvestingisadjustedupwardordownwardbasedontheprobabilityof achievingthetargetperformanceobjectivesestablishedfortheaward.

Wedeterminethefairvalueofstock-basedawardsthataresubjecttoachievementofperformanceobjectives basedonamarketcondition,whichincludesMSUsandtheothercomponentofPUs,usingtheMonte-Carlosimulation model,whichutilizesmultipleinputvariables,includingexpectedstockpricevolatilityandotherassumptionsappropriate fordeterminingfairvalue,toestimatetheprobabilityofsatisfyingtherespectivetargetperformanceobjectives establishedfortheaward.

ForfeitureRate

Changesinestimatedforfeitureratesarerecordedascumulativeadjustmentsintheperiodestimatesarerevised.

Certainofourassumptionsarebasedonmanagement’sestimates,inconsultationwithoutsidespecialists. Significantchangesinassumptionsforfutureawardsandactualforfeitureratescouldmateriallyimpactourstock-based compensationexpenseandresultsofoperations.

ValuationofCash-BasedAwards

Cash-basedawardsconsistoflong-termincentiveunits(“LTIUnits”)grantedtoeligibleemployees.LTIUnitsare classifiedasliabilityawardsandremeasuredateachquarter-endovertheapplicablevestingorperformanceperiod.In additiontoLTIUnitswithtermsandconditionsthatmirrorthoseofRSUs,wealsograntcertainemployeesLTIUnitswith termsandconditionssimilartothoseofPUsandMSUs.

RECENTACCOUNTINGREQUIREMENTS

RefertoNote1,“SummaryofSignificantAccountingPolicies,”totheConsolidatedFinancialStatementsforthis information.

Item7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISK RiskManagement

Weareexposedtotheimpactofchangesinforeigncurrencyexchangeratesandinterestrates.Wegenerallydo notpurchaseorholdforeigncurrencyorinterestrateorcommoditycontractsfortradingpurposes.

Ourobjectiveinmanagingourexposuretoforeigncurrencychangesistoreducetherisktoourearningsandcash flowassociatedwithforeigncurrencyexchangeratechanges.Asaresult,weenterintoforeigncurrencyexchange forward,optionandswapcontractstoreducerisksassociatedwiththevalueofourexistingforeigncurrencyassets, liabilities,firmcommitmentsandanticipatedforeignrevenuesandcosts,whenavailableandappropriate.Thegainsand lossesonthesecontractsareintendedtooffsetchangesintherelatedexposures.Wedonothedgeourforeigncurrency translationexposureinamannerthatwouldentirelyeliminatetheeffectsofchangesinforeigncurrencyexchangerates onournetincome.

Ourobjectiveinmanagingourexposuretointerestratechangesistoreducetheimpactofinterestratechanges onearningsandcashflows.Toachievethisobjective,wemayperiodicallyuseinterestratecontractstomanageour exposuretointerestratechanges.

Additionally,weenterintocertainnaturalgasfuturescontractstoreducetherisksassociatedwithnaturalgaswe anticipateusinginourmanufacturingoperations.Theseamountsarenotmaterialtoourfinancialstatements.

Inthenormalcourseofoperations,wealsofaceotherrisksthatareeithernon-financialornon-quantifiable.These risksprincipallyincludechangesineconomicorpoliticalconditions,otherrisksassociatedwithinternationaloperations, commoditypricerisk,andlegalandcompliancerisk,whicharenotreflectedintheanalysesdescribedbelow.

ForeignExchangeValue-At-Risk

WeuseaValue-At-Risk(“VAR”)modeltodeterminetheestimatedmaximumpotentialone-daylossinearnings associatedwithourforeignexchangepositionsandcontracts.Thisapproachassumesthatmarketratesorpricesfor foreignexchangepositionsandcontractsarenormallydistributed.VARmodelestimatesaremadeassumingnormal marketconditions.Themodelincludesforeignexchangederivativecontracts.Forecastedtransactions,firmcommitments, accountsreceivableandaccountspayabledenominatedinforeigncurrencies,whichcertainoftheseinstrumentsare intendedtohedge,areexcludedfromthemodel.

TheVARmodelisariskanalysistoolanddoesnotrepresentactuallossesinfairvaluethatwecouldincur,nor doesitconsiderthepotentialeffectoffavorablechangesinmarketfactors.

Inboth2024and2023,theVARwasestimatedusingavariance-covariancemethodology.Thecurrency correlationwasbasedonone-yearhistoricaldataobtainedfromoneofourdomesticbanks.A95%confidencelevelwas usedforaone-daytimehorizon.

Theestimatedmaximumpotentialone-daylossinearningsforourforeignexchangepositionsandcontractswas notsignificantatyear-end2024or2023.

InterestRateSensitivity

Anassumed44and41basispointincreaseininterestratesaffectingourvariable-rateborrowings(10%ofour weightedaverageinterestrateonfloatingratedebt)in2024and2023,respectively,wouldnothavehadasignificant impactoninterestexpense.

Item8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATA

IndextoConsolidatedFinancialStatements Page

ReportofIndependentRegisteredPublicAccountingFirm(PCAOBID238)44

ConsolidatedFinancialStatements:

ConsolidatedBalanceSheetsasofDecember28,2024andDecember30,202346

ConsolidatedStatementsofIncomefor2024,2023and202247

ConsolidatedStatementsofComprehensiveIncomefor2024,2023and202248

ConsolidatedStatementsofShareholders’Equityfor2024,2023and202249

ConsolidatedStatementsofCashFlowsfor2024,2023and202250

NotestoConsolidatedFinancialStatements51

TotheBoardofDirectorsandShareholdersofAveryDennisonCorporation

OpinionsontheFinancialStatementsandInternalControloverFinancialReporting

WehaveauditedtheaccompanyingconsolidatedbalancesheetsofAveryDennisonCorporationandits subsidiaries(the“Company”)asofDecember28,2024andDecember30,2023,andtherelatedconsolidatedstatements ofincome,ofcomprehensiveincome,ofshareholders’equityandofcashflowsforeachofthethreeyearsintheperiod endedDecember28,2024,includingtherelatednotes(collectivelyreferredtoasthe“consolidatedfinancialstatements”). WealsohaveauditedtheCompany’sinternalcontroloverfinancialreportingasofDecember28,2024,basedoncriteria establishedin InternalControl–IntegratedFramework(2013) issuedbytheCommitteeofSponsoringOrganizationsof theTreadwayCommission(COSO).

Inouropinion,theconsolidatedfinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,the financialpositionoftheCompanyasofDecember28,2024andDecember30,2023,andtheresultsofitsoperationsand itscashflowsforeachofthethreeyearsintheperiodendedDecember28,2024inconformitywithaccountingprinciples generallyacceptedintheUnitedStatesofAmerica.Alsoinouropinion,theCompanymaintained,inallmaterialrespects, effectiveinternalcontroloverfinancialreportingasofDecember28,2024,basedoncriteriaestablishedin Internal Control–IntegratedFramework(2013) issuedbytheCOSO.

BasisforOpinions

TheCompany’smanagementisresponsiblefortheseconsolidatedfinancialstatements,formaintainingeffective internalcontroloverfinancialreporting,andforitsassessmentoftheeffectivenessofinternalcontroloverfinancial reporting,includedinManagement’sReportonInternalControlOverFinancialReportingappearingunderItem9A.Our responsibilityistoexpressopinionsontheCompany’sconsolidatedfinancialstatementsandontheCompany’sinternal controloverfinancialreportingbasedonouraudits.WeareapublicaccountingfirmregisteredwiththePublicCompany AccountingOversightBoard(UnitedStates)(PCAOB)andarerequiredtobeindependentwithrespecttotheCompany inaccordancewiththeU.S.federalsecuritieslawsandtheapplicablerulesandregulationsoftheSecuritiesand ExchangeCommissionandthePCAOB.

WeconductedourauditsinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplan andperformtheauditstoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsarefreeof materialmisstatement,whetherduetoerrororfraud,andwhethereffectiveinternalcontroloverfinancialreportingwas maintainedinallmaterialrespects.

Ourauditsoftheconsolidatedfinancialstatementsincludedperformingprocedurestoassesstherisksofmaterial misstatementoftheconsolidatedfinancialstatements,whetherduetoerrororfraud,andperformingproceduresthat respondtothoserisks.Suchproceduresincludedexamining,onatestbasis,evidenceregardingtheamountsand disclosuresintheconsolidatedfinancialstatements.Ourauditsalsoincludedevaluatingtheaccountingprinciplesused andsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheconsolidated financialstatements.Ourauditofinternalcontroloverfinancialreportingincludedobtaininganunderstandingofinternal controloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesign andoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Ourauditsalsoincludedperformingsuchother proceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditsprovideareasonablebasisfor ouropinions.

DefinitionandLimitationsofInternalControloverFinancialReporting

Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassurance regardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesin accordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalcontroloverfinancialreportingincludes thosepoliciesandproceduresthat(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairly reflectthetransactionsanddispositionsoftheassetsofthecompany;(ii)providereasonableassurancethattransactions arerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccounting principles,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsof 44 2024AnnualReport | AveryDennisonCorporation

managementanddirectorsofthecompany;and(iii)providereasonableassuranceregardingpreventionortimely detectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthe financialstatements.

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetect misstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrols maybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesor proceduresmaydeteriorate.

CriticalAuditMatters

Thecriticalauditmattercommunicatedbelowisamatterarisingfromthecurrentperiodauditoftheconsolidated financialstatementsthatwascommunicatedorrequiredtobecommunicatedtotheauditcommitteeandthat(i)relates toaccountsordisclosuresthatarematerialtotheconsolidatedfinancialstatementsand(ii)involvedourespecially challenging,subjective,orcomplexjudgments.Thecommunicationofcriticalauditmattersdoesnotalterinanywayour opinionontheconsolidatedfinancialstatements,takenasawhole,andwearenot,bycommunicatingthecriticalaudit matterbelow,providingaseparateopiniononthecriticalauditmatterorontheaccountsordisclosurestowhichit relates.

RevenueRecognitionfromCertainProductRevenue

AsdescribedinNotes1and15totheconsolidatedfinancialstatements,revenueisrecognizedforanamountthat reflectstheconsiderationwhichisexpectedfromthesaleofproductswhentheCompanysatisfiesaperformance obligationbytransferringcontrolofproductstoacustomer.Managementconsidersanumberoffactorsindetermining whencontrolhasbeentransferredtoacustomer,includingthefollowing:(i)theCompany’spresentrighttopayment; (ii)thecustomer’slegaltitletotheasset;(iii)physicalpossessionoftheasset;(iv)thecustomer’ssignificantrisksand rewardsofownershipoftheasset;and(v)thecustomer’sacceptanceoftheasset.Controlgenerallytransferstoa customeruponshipmentordelivery,dependingonthespecifictermsofsalewiththecustomer.TheCompany’s consolidatednetsaleswere$8,755.7millionfortheyearendedDecember28,2024,ofwhichamajorityrelatestocertain productrevenueintheCompany’sMaterialsGroupandSolutionsGroupreportablesegments.

Theprincipalconsiderationforourdeterminationthatperformingproceduresrelatingtorevenuerecognitionfrom certainproductrevenueisacriticalauditmatterisahighdegreeofauditoreffortinperformingproceduresrelatedtothe Company’srevenuerecognitionfromcertainproductrevenue.

Addressingthematterinvolvedperformingproceduresandevaluatingauditevidenceinconnectionwithforming ouroverallopinionontheconsolidatedfinancialstatements.Theseproceduresincludedtestingtheeffectivenessof controlsrelatingtotherevenuerecognitionprocess,includingcontrolsovertherecognitionofcertainproductrevenuefor anamountthatreflectstheconsiderationwhichisexpectedfromthesaleofproductswhentheCompanysatisfiesa performanceobligation.Theseproceduresalsoincluded,amongothers(i)testingcertainproductrevenuetransactions,on asamplebasis,byobtainingandinspectingsourcedocuments,suchaspurchaseorders,invoices,contracts,proofof shipmentordelivery,andsubsequentpaymentreceipts;(ii)testingcertainproductrevenuetransactionsbydevelopingan independentexpectationofrevenueandcomparingtheindependentexpectationtotheamountrecorded;and (iii)confirming,onasamplebasis,outstandingcustomerinvoicebalancesasofDecember28,2024and,forconfirmations notreturned,obtainingandinspectingsourcedocuments,suchaspurchaseorders,invoices,proofofshipmentor delivery,andsubsequentpaymentreceipts.

/s/PricewaterhouseCoopersLLP

LosAngeles,California

February26,2025

WehaveservedastheCompany’sauditorsinceatleast1960,whichweretheCompany’sfirstfinancial statementssubjecttoSECreportingrequirements.Wehavenotbeenabletodeterminethespecificyearwebegan servingasauditoroftheCompanyorapredecessorcompany.

ConsolidatedBalanceSheets

(Dollarsinmillions,exceptpershareamount)December28,2024December30,2023 Assets

Currentassets:

Cashandcashequivalents$329.1$215.0

Tradeaccountsreceivable,lessallowancesof$29.0and$34.4atyear-end2024and 2023,respectively 1,466.21,414.9

LiabilitiesandShareholders’Equity

Currentliabilities:

897.3809.6

$8,404.2$8,209.8

Short-termborrowingsandcurrentportionoflong-termdebtandfinanceleases$592.3$622.2

Long-termretirementbenefitsandotherliabilities434.6500.3

Deferredtaxliabilitiesandincometaxespayable234.8260.0

Commitmentsandcontingencies(seeNotes7and8)

Shareholders’equity:

Commonstock,$1parvaluepershare,authorized–400,000,000sharesatyear-end 2024and2023;issued–124,126,624sharesatyear-end2024and2023; outstanding–79,800,396and80,495,585sharesatyear-end2024and2023, respectively 124.1124.1

Treasurystockatcost,44,326,228and43,631,039sharesatyear-end2024and 2023,respectively (3,347.5)(3,134.4) Accumulatedothercomprehensiveloss(456.1)(408.1) Totalshareholders’equity 2,312.32,127.9

Totalliabilitiesandshareholders’equity$8,404.2$8,209.8

SeeNotestoConsolidatedFinancialStatements

(Inmillions,exceptpershareamounts)202420232022

Netsales $8,755.7$8,364.3$9,039.3

Costofproductssold6,225.06,086.86,635.1

Grossprofit 2,530.72,277.52,404.2

Marketing,generalandadministrativeexpense1,415.31,313.71,330.8

Otherexpense(income),net71.6180.9(.6)

Interestexpense 117.0119.084.1

Othernon-operatingexpense(income),net(26.7)(30.8)(9.4)

Incomebeforetaxes953.5694.7999.3

Provisionforincometaxes248.6191.7242.2 Netincome $704.9$503.0$757.1

Pershareamounts:

Netincomepercommonshare$8.77$6.23$9.28

Netincomepercommonshare,assumingdilution$8.73$6.20$9.21

Weightedaveragenumberofsharesoutstanding:

SeeNotestoConsolidatedFinancialStatements

ConsolidatedStatementsofComprehensiveIncome

(Inmillions)

202420232022

Netincome $704.9$503.0$757.1

Othercomprehensiveincome(loss),netoftax:

Foreigncurrencytranslation:

Translationgain(loss)(46.9)(14.6)(96.6)

Pensionandotherpostretirementbenefits:

Netgain(loss)recognizedfromactuarialgain/lossandpriorservicecost/credit(1.3)(25.2)6.3

Reclassificationstonetincome.8(1.0)2.8

Cashflowhedges:

Gain(loss)recognizedoncashflowhedges(5.4)(7.0)4.9

Reclassificationstonetincome2.83.71.5

Fairvaluehedges:

Changesinexcludedcomponentsoffairvaluehedges2.0——

Othercomprehensiveincome(loss),netoftax(48.0)(44.1)(81.1)

Totalcomprehensiveincome,netoftax$656.9$458.9$676.0

SeeNotestoConsolidatedFinancialStatements

ConsolidatedStatementsofShareholders’Equity

(Dollarsinmillions,exceptpershareamounts)

Accumulated other comprehensive lossTotal

BalanceasofJanuary1,2022$124.1$862.3$3,880.7$(2,659.8)$(282.9)$1,924.4 Netincome——757.1——757.1

Othercomprehensiveincome(loss),netoftax ————(81.1)(81.1) Repurchaseof2,173,416sharesfortreasury———(379.5)—(379.5)

Issuanceof223,676sharesunderstock-based compensationplans—17.0(4.4)10.6—23.2 Contributionof153,803sharesto401(k)plan——20.16.9—27.0 Dividendsof$2.93pershare——(238.9)——(238.9)

BalanceasofDecember31,2022$124.1$879.3$4,414.6$(3,021.8)$(364.0)$2,032.2 Netincome——503.0——503.0

Othercomprehensiveincome(loss),netoftax ————(44.1)(44.1) Repurchaseof780,721sharesfortreasury———(137.5)—(137.5) Issuanceof297,885sharesunderstock-based compensationplans—(24.8)8.916.5—.6 Contributionof168,404sharesto401(k)plan——22.08.4—30.4 Dividendsof$3.18pershare——(256.7)——(256.7)

BalanceasofDecember30,2023$124.1$854.5$4,691.8$(3,134.4)$(408.1)$2,127.9 Netincome——704.9——704.9

Othercomprehensiveincome(loss),netoftax ————(48.0)(48.0) Repurchaseof1,184,780sharesfortreasury———(247.5)—(247.5) Issuanceof340,048sharesunderstock-based compensationplans—(13.9)7.726.8—20.6 Contributionof149,543sharesto401(k)plan——24.37.6—31.9 Dividendsof$3.45pershare——(277.5)——(277.5)

BalanceasofDecember28,2024$124.1$840.6$5,151.2$(3,347.5)$(456.1)$2,312.3

SeeNotestoConsolidatedFinancialStatements

(Inmillions) 202420232022

OperatingActivities

Netincome $704.9$503.0$757.1

Adjustmentstoreconcilenetincometonetcashprovidedbyoperating activities:

Provisionforcreditlossesandsalesreturns47.449.950.1

Stock-basedcompensation28.722.347.4

Deferredtaxesandothernon-cashtaxes(18.5)(24.4)18.4

Othernon-cashexpenseandloss(incomeandgain),net67.237.123.5

Changesinassetsandliabilitiesandotheradjustments:

Tradeaccountsreceivable(107.3)(16.7)(22.1)

Taxesonincome

Netcashprovidedbyoperatingactivities938.8826.0961.0

InvestingActivities

Purchasesofproperty,plantandequipment(208.8)(265.3)(278.1) Purchasesofsoftwareandotherdeferredcharges(31.0)(19.8)(20.4) Proceedsfromcompany-ownedlifeinsurancepolicies—48.1— PurchasesofArgentineBlueChipSwapsecurities(34.2)—— ProceedsfromsalesofArgentineBlueChipSwapsecurities24.0—— Proceedsfromsalesofproperty,plantandequipment.61.02.3 Proceedsfrominsuranceandsales(purchases)ofinvestments,net10.11.91.9 Proceedsfromsaleofventureinvestment——1.1 Paymentsforacquisitions,netofcashacquired,andventureinvestments(3.8)(224.9)(39.5) Netcashusedininvestingactivities(243.1)(459.0)(332.7)

FinancingActivities

Netincrease(decrease)inborrowingswithmaturitiesofthreemonthsorless(269.0)(36.6)34.6 Additionallong-termborrowings539.2394.9— Repaymentsoflong-termdebtandfinanceleases(308.1)(255.9)(6.3) Dividendspaid (277.5)(256.7)(238.9) Sharerepurchases(247.5)(137.5)(379.5) Net(taxwithholding)proceedsrelatedtostock-basedcompensation(8.4)(23.8)(25.1) Other (4.8)(1.6)—

Netcashusedinfinancingactivities(576.1)(317.2)(615.2) Effectofforeigncurrencytranslationoncashbalances(5.5)(2.0)(8.6) Increase(decrease)incashandcashequivalents114.147.84.5 Cashandcashequivalents,beginningofyear215.0167.2162.7 Cashandcashequivalents,endofyear$329.1$215.0$167.2

SeeNotestoConsolidatedFinancialStatements

50 2024AnnualReport | AveryDennisonCorporation

NotestoConsolidatedFinancialStatements

NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

NatureofOperations

Weareaglobalmaterialsscienceanddigitalidentificationsolutionscompany.WeareMakingPossibleTM products andsolutionsthathelpadvancetheindustriesweserve,providingbrandingandinformationsolutionsthatoptimizelabor andsupplychainefficiency,reducewaste,advancesustainability,circularityandtransparency,andbetterconnectbrands andconsumers.Wedesignanddeveloplabelingandfunctionalmaterials,radio-frequencyidentification(“RFID”)inlays andtags,softwareapplicationsthatconnectthephysicalanddigital,andofferingsthatenhancebrandedpackagingand carryordisplayinformationthatimprovesthecustomerexperience.Weserveanarrayofindustriesworldwide,including homeandpersonalcare,apparel,generalretail,e-commerce,logistics,foodandgrocery,pharmaceuticalsand automotive.

PrinciplesofConsolidation

OurConsolidatedFinancialStatementsincludetheaccountsofmajority-ownedandcontrolledsubsidiaries. Intercompanyaccounts,transactionsandprofitsareeliminatedinconsolidation.

FiscalYear

Ourfiscalyearshavegenerallyconsistedof52weeks,witheveryfifthorsixthfiscalyearconsistingof53weeks; our2024,2023and2022fiscalyearsconsistedof52-weekperiodsendingDecember28,2024,December30,2023 andDecember31,2022,respectively.

Subsequenttofiscalyear-end2024,inJanuary2025,theAuditCommitteeofourBoardofDirectorsapproveda changetoourprevious52-or53-weekfiscalyeargenerallyendingontheSaturdayclosesttoDecember31toafiscal yearcoincidentwiththecalendaryear.Our2025fiscalyearthatbeganonDecember29,2024willendonDecember31, 2025andfiscalyears2026andbeyondwillbeginonJanuary1andendonDecember31.

AccountingGuidanceUpdates

SegmentDisclosures

Inthefourthquarterof2024,weadoptedguidancethatrequiresadditionaldisclosuresaboutsignificantsegment expenses.SeeNote15,“SegmentandDisaggregatedRevenueInformation,”formoreinformation.

UseofEstimates

ThepreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedintheUnited StatesofAmerica,orGAAP,requiresmanagementtomakeestimatesandassumptionsforthereportingperiodandasof thedateofourfinancialstatements.Theseestimatesandassumptionsaffectthereportedamountsofassetsand liabilities,thedisclosureofcontingentliabilities,andthereportedamountsofrevenueandexpense.Astheeffectsof futureeventscannotbedetermined,actualresultscoulddiffersignificantlyfromtheseestimates.

CashandCashEquivalents

Cashandcashequivalentsgenerallyconsistofcashonhand,depositsinbanks,cash-in-transit,andbankdrafts andshort-terminvestmentswithmaturitiesofthreemonthsorlesswhenpurchasedorreceived.Thecarryingvalueof theseassetsapproximatesfairvalueduetotheshortmaturityoftheseinstruments.

Inventories

Westateinventoriesatthelowerofcostornetrealizablevalueandcategorizethemasrawmaterials, work-in-progressorfinishedgoods.Costisdeterminedusingthefirst-in,first-outmethod.Werecordinventorythatis damaged,obsolete,excessandslow-movingtocostofproductssoldandestablishalowercostbasisforthatinventory. Slow-movinginventoryisreviewedbycategoryandmayberecognizedpartiallyorfullytocostofproductssold dependingonthetypeofproduct,levelofusageandlengthoftimetheproducthasbeenincludedininventory.

TradeAccountsReceivable

Werecordtradeaccountsreceivableattheinvoicedamount.Ourallowancesforcreditlossesreflectcustomer tradeaccountsreceivablethatareestimatedtobepartiallyorentirelyuncollectible.Theseallowancesareusedtoreduce grosstradereceivablestotheirnetrealizablevalues.Werecordtheseallowancesbasedonestimatesrelatedtothe financialconditionofcustomers;theagingofreceivablebalances;ourhistoricalcollectionexperience;andcurrentand expectedfuturemacroeconomicandmarketconditions.

Property,PlantandEquipment

Wegenerallycomputedepreciationusingthestraight-linemethodovertheestimatedusefullivesofthe respectiveassets,rangingfromtento45yearsforbuildingsandimprovementsandthreeto15yearsformachineryand equipment.Leaseholdimprovementsaredepreciatedovertheshorteroftheusefullifeoftheassetandthetermofthe associatedlease.Weexpensemaintenanceandrepaircostsasincurred;wecapitalizerenewalsandimprovements.Upon thesaleorretirementofassets,theaccountsarerelievedofthecostandtherelatedaccumulateddepreciation,withany resultinggainorlossincludedinnetincome.

Leases

Ourleasesprimarilyrelatetoofficeandwarehousespace,machinery,transportation,andequipmentfor informationtechnology.Wedetermineifanarrangementisaleaseorcontainsaleaseatinception.Forleaseaccounting purposes,wedonotseparateleaseandnonleasecomponents,nordowerecordoperatingorfinanceleaseassetsand liabilitiesforshort-termleases.Wehaveoptionstoreneworterminatesomeofourleases.Weevaluaterenewaland terminationoptionsattheleasecommencementdateandovertheleasetermtodetermineifwearereasonablycertainto exercisetheseoptions.Asmostofourleasesdonotprovideanimplicitrate,weuseourincrementalborrowingrate basedontheinformationavailableattheleasecommencementdatetodeterminethepresentvalueofleasepayments. Werecognizeexpenseforoperatingleasesonastraight-linebasisovertheleaseterm,withvariableleasepayments recognizedintheperiodsinwhichtheyareincurred.

Software

Wecapitalizesoftwarecostsincurredduringtheapplicationdevelopmentstageofsoftwaredevelopment, includingcostsincurredfordesign,coding,installationtohardware,testing,andupgradesandenhancementsthat providethesoftwareorhardwarewithadditionalfunctionalitiesandcapabilities.Weexpensesoftwarecosts,including internalandexternaltrainingcostsandmaintenancecosts,incurredduringthepreliminaryprojectstageandthepostimplementationand/oroperationstage.Capitalizedsoftware,whichisincludedin“Otherassets”intheConsolidated BalanceSheets,isamortizedonastraight-linebasisovertheestimatedusefullifeofthesoftware,whichisgenerally betweenfiveandtenyears.

CloudComputingArrangements

Wecapitalizecertaincostsincurredduringtheapplicationdevelopmentstageofimplementationunderahosting arrangementthatisaservicecontract.Weexpensecostsincurredduringthepreliminaryprojectstageandthepostimplementationand/oroperationstage.Capitalizedimplementationcosts,whichareincludedin“Otherassets”inthe ConsolidatedBalanceSheets,areamortizedonastraight-linebasisoverthetermofthehostingarrangementplus optionalrenewalperiods,whichisgenerallybetweenfiveandtenyears.

VentureInvestments

Weprimarilyinvestinprivatelyheldcompaniesandutilizethemeasurementalternativeforequityinvestmentsthatdo nothavereadilydeterminablefairvalues,measuringthematcost lessimpairmentplusorminusobservablepricechangesin anorderlytransaction.VentureinvestmentsthatarepubliclytradedcompaniesarerecordedatfairvalueusingLevel1inputs. Thecarryingvalueofourventureinvestmentsisincludedin“Otherassets”intheConsolidatedBalanceSheets.

SeeNote9,“FairValueMeasurements,”formoreinformation.

ImpairmentofLong-livedAssets

Werecordimpairmentchargeswhenthecarryingamountsoflong-livedassetsaredeterminednottobe recoverable.Wemeasurerecoverabilitybycomparingtheundiscountedcashflowsexpectedfromtheapplicableassetor assetgroup’suseandeventualdispositiontoitscarryingvalue.Wecalculatetheamountofimpairmentlossasthe excessofthecarryingvalueoverthefairvalue.Historically,changesinmarketconditionsandmanagementstrategyhave causedustoreassessthecarryingamountofourlong-livedassets.

GoodwillandOtherIntangiblesResultingfromBusinessAcquisitions

Weaccountforbusinesscombinationsusingtheacquisitionmethod,withtheexcessoftheacquisitioncostover thefairvalueofacquirednettangibleassetsandidentifiedintangibleassetsconsideredgoodwill.Asaresult,wedisclose goodwillseparatelyfromotherintangibleassets.Otheridentifiableintangiblesincludecustomerrelationships,patented andotherdevelopedtechnology,andtradenamesandtrademarks.

Weperformanannualimpairmenttestofgoodwillduringthefourthquarterand,asnecessary,ifchangesinfacts andcircumstancesthatindicatethefairvalueofareportingunitmaybelessthanitscarryingvalue.Factorsthatmay causeustoperformanimpairmenttestoutsideofourannualassessmentincludesignificantunderperformanceofa businessrelativetoexpectedoperatingresults,significantadverseeconomicandindustrytrends,significantdeclinein ourmarketcapitalizationforanextendedperiodoftimerelativetonetbookvalue,orourdecisiontodivestaportionofa reportingunit.Inperformingimpairmenttests,wehavetheoptiontofirstassessqualitativefactorstodeterminewhether itisnecessarytoperformaquantitativeassessmentforgoodwillimpairment.Ifthequalitativeassessmentindicatesthat itismore-likely-than-notthatthefairvalueofareportingunitislessthanitscarryingvalue,weperformaquantitative assessment.Aquantitativeassessmentprimarilyusesthepresentvalue(discountedcashflow)methodtodeterminethe fairvalueofreportingunitswithgoodwill.

Wecomparethefairvalueofeachreportingunittoitscarryingamount,and,totheextentthecarryingamount exceedstheunit’sfairvalue,werecognizeanimpairmentofgoodwillfortheexcessuptotheamountofgoodwillofthat reportingunit.

Inconsultationwithoutsidespecialists,weestimatethefairvalueofourreportingunitsusingvariousvaluation techniques,withtheprimarytechniquebeingadiscountedcashflowanalysis.Adiscountedcashflowanalysisrequires ustomakevariousassumptions,includingareportingunit’srespectiveforecastedsales,operatingmarginsandgrowth rates,aswellasdiscountrates.Ourassumptionsaboutdiscountratesarebasedontheweightedaveragecostofcapital forcomparablecompanies.Ourassumptionsaboutsales,operatingmarginsandgrowthratesarebasedonourforecasts, businessplans,economicprojections,anticipatedfuturecashflows,andmarketplacedata.Wealsomakeassumptions forvaryingperpetualgrowthratesforperiodsbeyondourlong-termbusinessplanperiod.Webaseourfairvalue estimatesonprojectedfinancialinformationandassumptionsthatwebelievearereasonable.However,actualfuture resultsmaydiffermateriallyfromtheseestimatesandprojections.Thevaluationmethodologyweusetoestimatethefair valueofreportingunitsrequiresinputsandassumptionsthatreflectcurrentmarketconditions,aswellastheimpactof plannedbusinessandoperationalstrategiesthatrequiremanagementjudgment.Theestimatedfairvaluecouldincrease ordecreasedependingonchangesintheinputsandassumptions.

Wetestindefinite-livedintangibleassets,consistingoftradenamesandtrademarks,forimpairmentinthefourth quarterorwhenevereventsorcircumstancesindicatethatitismore-likely-than-notthattheircarryingamountsexceed theirfairvalues.Inperformingtheimpairmenttests,wehavetheoptionfirsttoassessqualitativefactorstodetermine whetheritisnecessarytoperformaquantitativeassessmentforindefinite-livedintangibleassetimpairment.Ifwedecide nottoperformaqualitativeassessment,orifthequalitativeassessmentindicatesthatitismore-likely-than-notthatthe fairvalueofanindefinite-livedintangibleassetislessthanitscarryingvalue,weperformaquantitativeassessment.Fair valueisestimatedasthediscountedvalueoffuturerevenuesusingaroyaltyratethatathirdpartywouldpaytousethe asset.Variationintheroyaltyratescouldimpactourestimateoffairvalue.Ifthecarryingamountofanassetexceedsits fairvalue,animpairmentlossisrecognizedinanamountequaltothatexcess.

Weamortizefinite-livedintangibleassets,consistingofcustomerrelationships,patentedandotherdeveloped technology,tradenamesandtrademarks,andotherintangibles,onastraight-linebasisovertheirestimatedusefullives.

SeeNote3,“GoodwillandOtherIntangiblesResultingfromBusinessAcquisitions,”formoreinformation.

ForeignCurrency

WetranslateassetandliabilityaccountsofinternationaloperationsintoU.S.dollarsatcurrentrates.Revenuesand expensesaretranslatedattheweightedaveragecurrencyrateforthefiscalyear.Werecordgainsandlossesresulting fromhedgingthevalueofinvestmentsincertaininternationaloperationsandfromthetranslationofbalancesheet accountsdirectlyasacomponentofothercomprehensiveincome.

WeaccountforouroperationsinArgentinaashighlyinflationarybecausethecountry’sthree-yearcumulative inflationrateexceeds100%.Asaresult,thefunctionalcurrencyofourArgentinesubsidiaryistheU.S.dollar.

FinancialInstruments

Weenterintoforeigncurrencyexchangederivativecontractstoreduceourriskfromexchangeratefluctuations associatedwithreceivables,payables,loansandfirmcommitmentsdenominatedincertainforeigncurrenciesthatarise primarilyasaresultofouroperationsoutsidetheU.S.Fromtimetotime,weenterintointerestratecontractstohelp manageourexposuretocertaininterestratefluctuations.Wealsoenterintofuturescontractstohedgecertainprice fluctuationsforaportionofouranticipateddomesticpurchasesofnaturalgas.Themaximumlengthoftimeforwhichwe hedgeourexposuretothevariabilityinfuturecashflowsis36monthsforforecastedforeigncurrencyexchangeand commoditytransactionsand10yearsforcross-currencyswaptransactions.

Onthedateweenterintoaderivativecontract,wedeterminewhetherthederivativewillbedesignatedasa hedge.Otherderivativesnotdesignatedashedgesarerecordedatfairvalue,withchangesinfairvaluerecognizedin earnings.Ourpolicyisnottopurchaseorholdanyforeigncurrency,interestrateorcommoditycontractsfortrading purposes.

Allderivativefinancialinstrumentsareaccountedforatfairvalueandrecognizedasassetsorliabilitiesinthe ConsolidatedBalanceSheets.Accountingforthegainorlossresultingfromthechangesinthefairvalueofaderivative financialinstrumentdependsonwhetherithasbeendesignatedaspartofahedgingrelationshipandishighlyeffective, aswellasthenatureofthehedgingactivity.Weformallydocumentallrelationshipsbetweenderivativefinancial instrumentsaccountedforasdesignatedhedges,thehedgeditem,themethodforassessingeffectivenessandthe treatmentofexcludedcomponents.Thesefinancialinstrumentscanbedesignatedas:

•Fairvaluehedges-Hedgesofthechangeinthefairvalueofarecognizedassetorliability.Thegainorloss fromthederivative,aswellastheoffsettinggainorlossonthehedgeditemattributabletothehedgedrisk, arerecognizedinincomeduringtheperiodofthechangeinfairvalue.Hedgeeffectivenessisbasedonthe spotmethodandexpectedtobeperfectlyeffective.Excludedcomponentsarenotincludedinthe effectivenessassessment,recognizedinasystematicandrationalmethodoverthetermofthecontractsand recordedtothesameincomestatementlineastheitembeinghedged.

•Cashflowhedges-Hedgestoreducethevariabilityoffutureexpectedcashflows.Forderivativeinstruments thataredesignatedandqualifyascashflowhedges,theentiregainorlossonthederivativeisreportedasa componentof“Accumulatedothercomprehensiveloss”andreclassifiedintoearningsinthesameperiod(s) duringwhichthehedgedtransactionimpactsearnings.Gainsandlossesonthesederivatives,representing hedgecomponentsexcludedfromtheassessmentofeffectiveness,arerecognizedincurrentearnings.

•Netinvestmenthedges-Hedgesofthecurrencyexposurerelatedtoanetinvestmentinaforeignoperation. Thegainorlossfromthederivativefinancialinstrumentisrecognizedasforeigncurrencytranslationin “Accumulatedothercomprehensiveloss”untilthehedgednetinvestmentiseithersoldorsubstantially liquidated.Hedgeeffectivenessisbasedonthespotmethod,withnoineffectivenessexpectedoverthe durationofthehedgingrelationship.Excludedcomponentsarenotincludedintheeffectivenessassessment, recordedinasystematicandrationalbasisoverthetermofthecontractsandrecordedto“Marketing,general andadministrativeexpense”intheConsolidatedStatementsofIncome.

Weassess,bothattheinceptionofanyhedgeandonanongoingbasis,whetherourhedgesarehighlyeffective.If wedeterminethatahedgeisnothighlyeffective,weprospectivelydiscontinuehedgeaccounting.Forcashflowhedges, werecordgainsandlossesascomponentsofothercomprehensiveincomeandreclassifythemintoearningsinthesame periodduringwhichthehedgedtransactionaffectsearnings.Intheeventthattheanticipatedtransactionisnolonger

highlyprobabletooccur,werecognizethechangeinfairvalueofthehedginginstrumentincurrentperiodearnings.We recognizechangesinfairvaluehedgesincurrentperiodearnings.Wealsorecognizechangesinthefairvalueof underlyinghedgeditems(suchasrecognizedassetsorliabilities)incurrentperiodearningsandoffsetthechangesinthe fairvalueofthederivative.

IntheConsolidatedStatementsofCashFlows,hedgesareclassifiedinthesamecategoryasthehedgeditem.

SeeNote5,“FinancialInstruments,”formoreinformation.

FairValueMeasurements

Wedefinefairvalueasthepricethatwouldbereceivedfromsellinganassetorpaidfortransferringaliabilityin anorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Indeterminingfairvalue,weconsiderthe principalormostadvantageousmarketinwhichwewouldtransactandthemarket-basedriskmeasurementsor assumptionsthatmarketparticipantswoulduseinpricingtheassetorliability.

Wedeterminefairvaluebasedonathree-tierfairvaluehierarchy,whichweusetoprioritizetheinputsusedin measuringfairvalue.ThesetiersconsistofLevel1,whichareobservableinputssuchasquotedpricesinactivemarkets; Level2,whichareinputsotherthanquotedpricesinactivemarketsthatareeitherdirectlyorindirectlyobservable;and Level3,whichareunobservableinputsforwhichlittleornomarketdataexists,requiringustodevelopourown assumptionstodeterminethebestestimateoffairvalue.

RevenueRecognition

Substantiallyallofourrevenueisderivedfromthesaleofproducts.OurMaterialsGroupreportablesegmentsells pressure-sensitivelabelmaterials,films,performancetapesandfasteners.OurSolutionsGroupreportablesegmentsells awidevarietyofbrandingandinformationsolutions-orientedproducts,suchastickets,tags,labels(includingRFID inlays),aswellasrelatedequipment,servicesandsupplies,thatprovideourcustomerswithsolutionstooptimize brandingandengagementwiththeirconsumersandenableitemvisibilityandtraceability.Werecognizerevenueforan amountthatreflectstheconsiderationwhichweexpectfromthesaleofourproductswhenwesatisfyaperformance obligationbytransferringcontrolofourproductstoacustomer.Weconsideranumberoffactorsindeterminingwhenwe havetransferredcontroltoacustomer,includingthefollowing:(i)ourpresentrighttopayment;(ii)thecustomer’slegal titletotheasset;(iii)physicalpossessionoftheasset;(iv)thecustomer’ssignificantrisksandrewardsofownershipofthe asset;and(v)thecustomer’sacceptanceoftheasset.Generally,therearenosubstantivedifferencesinrevenue recognitionconsiderationsamongourvariousproducts.Controlgenerallytransferstoacustomeruponshipmentor delivery,dependingonthespecifictermsofsalewiththecustomer.

Ourpaymenttermswithcustomersaregenerallyconsistentwiththoseusedintheindustriesandregionsinwhich weoperate.

Weacceptsalesreturnsincertainlimitedcircumstances.Werecordaliabilityforestimatedreturnsanda correspondingreductiontosalesintheamountweexpecttorepayorcreditcustomers,whichwebaseonhistorical returnsandoutstandingcustomerclaims.Weupdateourestimateseachreportingperiod.

Salesrebates,discountsandothercustomerconcessionsrepresentvariableconsiderationandarecommoninthe industriesandregionsinwhichweoperate,whichweaccountforasareductiontosalesbasedonestimatesatthetime atwhichproductsaresold.Webasetheseestimatesonourhistoricalexperience,aswellascurrentinformationsuchas salesforecasts.Weregularlyreviewourestimatesandadjusttherevenuerecognizedfromsalesasnecessaryas additionalinformationbecomesavailable.

Weexcludesalestax,value-addedtaxandothertaxeswecollectfromcustomersfromsales.Weaccountfor shippingandhandlingactivitiesaftercontrolofaproductistransferredtoacustomerasfulfillmentcostsandnotas separateperformanceobligations.Asapracticalexpedient,wehaveelectednottodisclosethevalueofunsatisfied performanceobligationsforcontractswithanexpectedlengthoflessthanoneyear.Wegenerallyexpensesales commissionswhenincurredbecausetheirexpectedamortizationperiodisoneyearorless.Werecordthesecostsin “Marketing,generalandadministrativeexpense”intheConsolidatedStatementsofIncome.

ResearchandDevelopment

Researchanddevelopmentcostsarerelatedtoresearch,designandtestingofnewproductsandapplications, whichweexpenseasincurred.

Long-TermIncentiveCompensation

Nolong-termincentivecompensationexpensewascapitalizedin2024,2023or2022.

ValuationofStock-BasedAwards

Webaseourstock-basedcompensationexpenseonthefairvalueofawards,adjustedforestimatedforfeitures, amortizedonastraight-linebasisovertherequisiteserviceperiodforstockoptionsandrestrictedstockunits(“RSUs”). Webasecompensationexpenseforperformanceunits(“PUs”)onthefairvalueofawards,adjustedforestimated forfeitures,andamortizedonastraight-linebasisastheseawardscliff-vestattheendoftherequisiteserviceperiod.We basecompensationexpenserelatedtomarket-leveragedstockunits(“MSUs”)onthefairvalueofawards,adjustedfor estimatedforfeitures,andamortizedonagraded-vestingbasisovertheirrespectiveperformanceperiods.

Compensationexpenseforawardswithamarketconditionasaperformanceobjective,whichincludesMSUsand acomponentofPUs,isnotadjustediftheconditionisnotmet,aslongastherequisiteserviceperiodismet.

WeestimatethefairvalueofstockoptionsasofthedateofgrantusingtheBlack-Scholesoption-pricingmodel. Thismodelrequiresinputassumptionsforourexpecteddividendyield,expectedstockpricevolatility,risk-freeinterest rateandexpectedoptionterm.

WedeterminethefairvalueofRSUsandthecomponentofPUsthatissubjecttotheachievementofa performanceobjectiveusingafinancialperformanceconditionbasedonthefairmarketvalueofourcommonstockasof thedateofgrant,adjustedforforegonedividends.OvertheperformanceperiodofthePUs,theestimatednumberof sharesofourcommonstockissuableuponvestingisadjustedupwardordownwardfromthetargetsharesatthetimeof grantbasedontheprobabilityoftheperformanceobjectivesestablishedfortheawardbeingachieved.

Wedeterminethefairvalueofstock-basedawardsthataresubjecttotheachievementofperformanceobjectives basedonamarketcondition,whichincludesMSUsandtheothercomponentofPUs,usingtheMonte-Carlosimulation method,whichutilizesmultipleinputvariables,includingexpectedstockpricevolatilityandotherassumptionsappropriatefor determiningfairvalue,toestimatetheprobabilityofsatisfyingtheperformanceobjectivesestablishedfortheaward.

Certainoftheseassumptionsarebasedonmanagement’sestimates,inconsultationwithoutsidespecialists. Significantchangesinassumptionsforfutureawardsandactualforfeitureratescouldmateriallyimpactstock-based compensationexpenseandourresultsofoperations.

ValuationofCash-BasedAwards

Cash-basedawardsconsistoflong-termincentiveunits(“LTIUnits”)grantedtoeligibleemployees.Weclassify LTIUnitsasliabilityawardsandremeasurethemateachquarter-endovertheapplicablevestingorperformanceperiod. InadditiontoLTIUnitswithtermsandconditionsthatmirrorthoseofRSUs,wealsograntcertainemployeesLTIUnits withtermsandconditionsthatmirrorthoseofPUsandMSUs.

Forfeitures

Weestimateexpectedforfeituresindeterminingthecompensationcosttoberecognizedeachperiod,ratherthan accountingforforfeituresastheyoccur.Werecordchangesinestimatedforfeitureratesascumulativeadjustmentsinthe periodestimatesarerevised.

SeeNote12,“Long-termIncentiveCompensation,”formoreinformation.

TaxesBasedonIncome

BecausewearesubjecttoincometaxintheU.S.andmultipleforeignjurisdictions,judgmentisrequiredin evaluatingandestimatingourworldwideprovisionforincometaxes,accrualsfortaxes,deferredtaxesandtaxpositions. OurprovisionforincometaxesisdeterminedusingtheassetandliabilityapproachinaccordancewithGAAP.Underthis approach,deferredtaxesrepresenttheexpectedfuturetaxconsequencesoftemporarydifferencesbetweenthecarrying amountsandtaxbasesofassetsandliabilities.Werecordavaluationallowancetoreduceourdeferredtaxassetswhen 56 2024AnnualReport | AveryDennisonCorporation

uncertaintyregardingtheirrealizabilityexists.Werecognizeandmeasureouruncertaintaxpositionsfollowingthemorelikely-than-notthresholdforrecognitionandmeasurementfortaxpositionswetakeorexpecttotakeonataxreturn.

SeeNote14,“TaxesBasedonIncome,”formoreinformation.

RecentAccountingRequirements

InNovember2024,theFASBissuedguidanceexpandingthedisclosurerequirementsforcertainexpensesin notestoconsolidatedfinancialstatements.Theguidanceiseffectiveforannualreportingperiodsbeginningafter December15,2026andinterimreportingperiodsbeginningafterDecember15,2027.Earlyadoptionispermitted.We arecurrentlyassessingtheimpactofadoptingthisguidanceonourfinancialstatementdisclosures.

NOTE2.BUSINESSACQUISITIONS

2023BusinessAcquisitions

OnNovember23,2023,wecompletedourbusinessacquisitionofSilverCrystalGroup(“SilverCrystal”),a Canada-basedproviderofsportsapparelcustomizationandapplicationsolutionsacrossin-venue,direct-to-businessand e-commerceplatforms.OnMay22,2023,wecompletedourbusinessacquisitionofLGGroup,Inc.(“LionBrothers”),a Maryland-baseddesignerandmanufacturerofapparelbrandembellishments.OnMarch6,2023,wecompletedour businessacquisitionofThermopatch,Inc.(“Thermopatch”),aNewYork-basedmanufacturerspecializinginlabeling, embellishmentsandtransfersforthesports,industriallaundry,workwearandhospitalityindustries.Theseacquisitions expandedtheproductportfolioinourSolutionsGroupreportablesegment.

TheacquisitionsofSilverCrystal,LionBrothersandThermopatcharereferredtocollectivelyasthe“2023 Acquisitions.”

Theaggregatepurchaseconsideration,includingpurchaseconsiderationpayable,forthe2023Acquisitionswas approximately$231million.Wefundedthe2023Acquisitionsusingcashandcommercialpaperborrowings.Inaddition tothecashpaidatclosing,thesellersinoneoftheseacquisitionsareeligibleforearn-outpaymentsofupto$5million, subjecttotheacquiredcompanyachievingcertainpost-acquisitionperformancetargets.Asoftheacquisitiondate,we includedanestimateofthefairvalueoftheseearn-outpaymentsintheaggregatepurchaseconsideration.

The2023Acquisitionswerenotmaterial,individuallyorintheaggregate,totheConsolidatedFinancial Statements.

2022BusinessAcquisitions

InJanuary2022,wecompletedourbusinessacquisitionsofTexTraceAG(“TexTrace”),aSwitzerland-based technologydeveloperspecializingincustom-madewovenandknittedRFIDproductsthatcanbesewnontoorinserted intogarments,andRietveldSerigrafieB.V.andRietveldScreenprintingSerigrafiBaskiMatbaaTekstilIthalatIhracat SanayiveTicaretLimitedSirketi(collectively,“Rietveld”),aNetherlands-basedproviderofexternalembellishment solutionsandapplicationandprintingmethodsforperformancebrandsandteamsportsinEurope.Theseacquisitions expandedtheproductportfolioinourSolutionsGroupreportablesegment.TheacquisitionsofTexTraceandRietveldare referredtocollectivelyasthe“2022Acquisitions.”

Theaggregatepurchaseconsiderationforthe2022Acquisitionswasapproximately$35million.Wefundedthe 2022Acquisitionsusingcashandcommercialpaperborrowings.Inadditiontothecashpaidatclosing,thesellersinone oftheseacquisitionsareeligibleforearn-outpaymentsofupto$30million,subjecttotheacquiredcompanyachieving certainpost-acquisitionperformancetargets.Asoftheacquisitiondate,weincludedanestimateofthefairvalueofthese earn-outpaymentsintheaggregatepurchaseconsideration.

The2022Acquisitionswerenotmaterial,individuallyorintheaggregate,totheConsolidatedFinancial Statements.

NOTE3.GOODWILLANDOTHERINTANGIBLESRESULTINGFROMBUSINESSACQUISITIONS

Goodwill

Resultsfromourannualgoodwillimpairmenttestinthefourthquarterof2024indicatedthatnoimpairment occurredduring2024.TheassumptionsusedinourassessmentwereprimarilybasedonLevel3inputs.

Changesinthenetcarryingamountofgoodwillfor2024and2023byreportablesegmentareshownbelow.

(Inmillions)

Materials Group Solutions GroupTotal

GoodwillasofDecember31,2022$618.7$1,243.7$1,862.4

Acquisitions(1) —135.0135.0

Translationadjustments12.04.216.2

GoodwillasofDecember30,2023630.71,382.92,013.6

Acquisitionadjustments(2) —(2.7)(2.7)

Translationadjustments(24.6)(10.1)(34.7)

GoodwillasofDecember28,2024$606.1$1,370.1$1,976.2

(1) Goodwillacquiredrelatedtothe2023Acquisitions.Weexpectsubstantiallyalloftherecognizedgoodwillrelatedtothe2023Acquisitionsnottobe deductibleforincometaxpurposes.

(2) Measurementperiodadjustmentsrelatedtothefinalizationofthepurchasepriceallocationforour2023Acquisitions.

ThecarryingamountsofgoodwillatDecember28,2024andDecember30,2023werenetofaccumulated impairmentlossesof$820millionrecognizedinfiscalyear2009byourSolutionsGroupreportablesegment.

Indefinite-LivedIntangibleAssets

Resultsfromourannualindefinite-livedintangibleassetsimpairmenttestinthefourthquarterindicatedthatno impairmentoccurredin2024.Thecarryingvalueofindefinite-livedintangibleassetsresultingfrombusinessacquisitions, consistingoftradenamesandtrademarks,was$154.5millionand$155.3millionatDecember28,2024and December30,2023,respectively.

Finite-LivedIntangibleAssets

Inconnectionwiththe2023Acquisitions,weacquiredapproximately$94millionofidentifiablefinite-lived intangibleassets,whichconsistedofcustomerrelationships,patentedandotherdevelopedtechnology,andtradenames andtrademarks.Weutilizedtheincomeapproachtoestimatethefairvalueofacquiredidentifiableintangibles,primarily usingLevel3inputs.Weappliedsignificantjudgmentindeterminingthefairvalueofintangibleassets,whichincluded ourestimatesandassumptionswithrespecttoestimatedfuturerevenueandrelatedprofitmargins,customerretention rates,technologymigrationcurves,royaltyrates,discountratesandeconomiclivesassignedtotheacquiredintangible assets.

Thetablebelowsummarizestheamountsandweightedaverageusefullivesoftheintangibleassetsassociated withthe2023Acquisitionsasoftheirrespectiveacquisitiondates.

Weighted average amortization period (inyears) Customerrelationships $68.811

Amount (inmillions)

Thetablebelowsetsforthourfinite-livedintangibleassetsresultingfrombusinessacquisitionsatDecember28, 2024andDecember30,2023,whichcontinuetobeamortized.

20242023

(Inmillions)

Customerrelationships$916.0$438.5$477.5$922.5$383.7$538.8 Patentedandother

developedtechnology275.2156.8118.4278.3130.2148.1 Tradenamesandtrademarks17.112.84.317.411.75.7 Otherintangibles3.22.6.63.22.01.2 Total$1,211.5$610.7$600.8$1,221.4$527.6$693.8

Amortizationexpenseforfinite-livedintangibleassetsresultingfrombusinessacquisitionswas$89.4millionfor 2024,$86.3millionfor2023and$81.8millionfor2022.

Weexpectestimatedamortizationexpenseforfinite-livedintangibleassetsresultingfrombusinessacquisitions foreachofthenextfivefiscalyearsandthereaftertobeasfollows:

NOTE4.DEBT

Short-TermBorrowings

WehadnooutstandingborrowingsfromU.S.commercialpaperasofDecember28,2024and$112millionof outstandingborrowingsfromU.S.commercialpaperissuancesasofDecember30,2023withaweightedaverage interestrateof5.54%.

WehaveaEuro-CommercialPaperProgramunderwhichwemayissueunsecuredcommercialpapernotesupto amaximumaggregateamountoutstandingof$500million.Proceedsfromissuancesunderthisprogrammaybeusedfor generalcorporatepurposes.Thematuritiesofthenotesvary,butmaynotexceed364daysfromthedateofissuance. Ourpaymentobligationswithrespecttoanynotesissuedunderthisprogramarebackedbyourrevolvingcreditfacility (the“Revolver”).Therearenofinancialcovenantsunderthisprogram.Wehadnooutstandingbalanceasof December28,2024and$199.2millionoutstandingunderthisprogramasofDecember30,2023withaweighted averageinterestrateof4.13%.

Short-TermCreditFacilities

InJune2024,weenteredintoaCreditAgreement(the“CreditAgreement”)relatedtotheRevolvertoborrowup toanaggregateof$1.2billionthroughitsmaturitydateofJune26,2029.TheRevolverrefinancedthepriorrevolving creditfacilityundertheFifthAmendedandRestatedCreditAgreementdatedasofFebruary13,2020,asamended. PursuanttotheCreditAgreement,thecommitmentsundertheRevolvermaybeincreasedbyupto$600million,subject tolenderapprovalsandcustomaryrequirements.Undercertaincircumstances,wemayrequestthatthecommitments undertheRevolverbeextendedforone-yearperiodsinaccordancewiththetermsandconditionsoftheCredit Agreement.WeusetheRevolverasaback-upfacilityforourcommercialpaperprogramandforothercorporate purposes.

NobalancewasoutstandingundertheRevolverasofDecember28,2024orourpriorrevolvingcreditfacilityasof December30,2023.Commitmentfeesassociatedwithrevolvingcreditfacilitiesin2024,2023and2022were $1.5million,$1.2millionand$0.9million,respectively.

InadditiontotheRevolver,wehaveshort-termlinesofcreditavailableinvariouscountriesofapproximately $261millionintheaggregateatDecember28,2024.Theselinesmaybecancelledatanytimebyusortheissuingbanks. Borrowingsunderourshort-termlinesofcreditwerenotmaterialasofDecember28,2024andDecember30,2023.

Fromtimetotime,weprovideguaranteesoncertainarrangementswithbanks.Ourexposuretotheseguarantees isnotmaterial.

Long-TermBorrowings

InNovember2024,weissued €500millionofseniornotes,dueNovember4,2034,whichbearaninterestrateof 3.750%peryear,payableannuallyinarrears.Ournetproceedsfromthisissuance,afterdeductingunderwriting discountsandofferingexpenses,wereapproximately €495million($539million),whichweintendtousetorepayour €500millionofseniornotesmaturinginMarch2025andforgeneralcorporatepurposes.

InAugust2024,werepaidour$300millionofseniornotesatmaturityusingcashflowsfromoperationsand commercialpaperborrowings.

During2024,wereclassifiedour$5millionofmedium-termnotesdueinthethirdquarterof2025,$25millionof medium-termnotesdueinthesecondquarterof2025and €500millionofseniornotesdueinthefirstquarterof2025 from“Long-termdebtandfinanceleases”to“Short-termborrowingsandcurrentportionoflong-termdebtandfinance leases”intheConsolidatedBalanceSheets.

InMarch2023,weissued$400millionofseniornotes,dueMarch15,2033,whichbearaninterestrateof 5.750%peryear,payablesemiannuallyinarrears.Ournetproceedsfromthisissuance,afterdeductingunderwriting discountsandofferingexpenses,were$394.9million,whichweusedtorepayindebtednessunderourcommercialpaper programsandour$250millionofseniornotesthatmaturedonApril15,2023.

Ourlong-termdebt,andrelatedinterestrates,atyear-end2024and2023isshownbelow.

(Inmillions)

Long-termdebt

Medium-termnotes:

20242023

Series1995due2025$30.0$30.0

Long-termnotes:

Seniornotesdue2024at0.85%—299.6

Seniornotesdue2025at1.25%(1) 521.1552.6

Seniornotesdue2028at4.875%497.4496.7

Seniornotesdue2030at2.650%496.7496.1

Seniornotesdue2032at2.25%495.7495.1

Seniornotesdue2033at6.0%149.3149.2

Seniornotesdue2033at5.75%395.8395.3

Seniornotesdue2034at3.75%(1) 515.9—

Lessamountclassifiedascurrent(551.1)(299.6)

Totallong-termdebt(2) $2,550.8$2,615.0

(1) Theseseniornotesareeuro-denominated.Theseniornotesduein2025and2034eachhaveafacevalueof €500million.

(2) Includedunamortizeddebtissuancecostsanddebtdiscountsof$12.6millionand$7.9million,respectively,asofyear-end2024and$11.3million and$7.4million,respectively,asofyear-end2023.

Atyear-end2024and2023,ourmedium-termnoteshadaccruedinterestataweightedaveragefixedrateof 7.5%.

Weexpectmaturitiesofourlong-termdebtforeachofthenextfivefiscalyearsandthereaftertobeasfollows:

Other

RefertoNote7,“CommitmentsandLeases,”forinformationrelatedtofinanceleases.

TheRevolvercontainsafinancialcovenantrequiringthatwemaintainaspecifiedratiooftotaldebtminus unrestrictedcashandcashequivalentsinexcessof$50milliontoacertainmeasureofincome.AsofDecember28,2024 andDecember30,2023,wewereincompliancewiththisfinancialcovenant.

Ourtotalinterestcostsin2024,2023and2022were$124.0million,$126.5millionand$89.8million, respectively,ofwhich$7.0million,$7.5millionand$5.7million,respectively,wascapitalizedaspartofthecostof property,plantandequipment,capitalizedsoftwareandcapitalizedimplementationcostsassociatedwithcloud computingarrangements.

Theestimatedfairvalueofourlong-termdebtisprimarilybasedonthecreditspreadaboveU.S.Treasury securitiesoreurogovernmentbondsecurities,asapplicable,onnoteswithsimilarrates,creditratingsandremaining maturities.Thefairvalueofshort-termborrowings,whichincludescommercialpaperissuancesandshort-termlinesof credit,approximatestheircarryingvaluegiventheirshortduration.Thefairvalueofourtotaldebtwas$3.01billionat December28,2024and$3.11billionatDecember30,2023.Fairvalueamountsweredeterminedbasedprimarilyon Level2inputs.RefertoNote1,“SummaryofSignificantAccountingPolicies,”formoreinformation.

NOTE5.FINANCIALINSTRUMENTS

Weusevariousderivativefinancialinstrumentstomanagerisksinforeigncurrencyexchangerates,commodity pricesandinterestrates.Werecognizederivativefinancialinstrumentsaseitherassetsorliabilitiesatfairvalueinthe ConsolidatedBalanceSheets.

FairValueHedges

During2024,weenteredintoforeigncurrencyforwardcontractstohedgeaportionofour €500millionofsenior notesdueinthefirstquarterof2025and €500millionofseniornotesdueinthefourthquarterof2034tooffsetchanges inthefairvalueofthehedgeditemattributabletoforeigncurrencyrisk.Theforeigncurrencyforwardcontractshedging our €500millionofseniornotesdueinthefourthquarterof2034haveamaturitydateofDecember2025.

CashFlowHedges

During2020,weenteredintoU.S.dollartoeurocross-currencyswapcontractswithatotalnotionalamountof $250milliontoeffectivelyconvertourfixed-rateU.S.dollar-denominateddebtintoeuro-denominateddebt,including semiannualinterestpaymentsandthepaymentofprincipalatmaturity.Duringthetermofthecontract,whichendson April30,2030,wepayfixed-rateinterestineurosandreceivefixed-rateinterestinU.S.dollars.

Wedesignatecommodityforwardcontractsonforecastedpurchasesofcommoditiesascashflowhedges.

During2024,weenteredintointerestrateforward-startingswapcontractsthatwedesignatedascashflow hedgesthatwereterminatedupontheissuanceofour €500millionofseniornotesdueinthefourthquarterof2034.The resultinggainwillbeamortizedtointerestexpenseoverthetermofthehedgedfixed-rateinterestpayments.

NetInvestmentHedges

During2024,weenteredintoforeigncurrencyforwardcontractsandzero-costcollars,combiningeachpairasnet investmenthedgesforaccountingpurposes.Theobjectiveofthehedgingactivityistominimizetheeffectofforeign currencyexchangeratesonournetinvestmentincertainforeignoperationsbetweenthesoldputstrikeandthe purchasedcallstrikeratesofthecontracts.Thenotionalamountofthesehedgesareapproximately €420millionand €500millionwithmaturitydatesinMarch2025andDecember2025,respectively.

OtherDerivatives

OuroutstandingforeigncurrencyexchangecontractsasofDecember28,2024wererecordedinvarious currencies,primarilytheU.S.dollar,Canadiandollar,euro,Chineserenminbi,BritishpoundsterlingandHongKongdollar. Forotherderivativeinstrumentsnotdesignatedashedginginstruments,thegainorlossisrecognizedincurrentearnings.

DerivativeFinancialStatementImpacts

ThefollowingtableshowsthefairvalueandbalancesheetlocationsofotherderivativesasofDecember28,2024 andDecember30,2023: (Inmillions)

December28,2024

Derivativesdesignatedashedges:

Foreigncurrencyforwardcontracts$958.9$.2$—$36.7$—Fairvalue Cross-currencyswapcontracts250.0—10.9——Cashflow Commoditycontracts2.9.4—.4—Cashflow Foreigncurrencyforwardcontractswith collars958.917.8—.2—Netinvestment Total$18.4$10.9$37.3$—

Derivativesnotdesignatedashedges: Foreigncurrencyexchangecontracts$1,741.8$11.9$—$4.2$— December30,2023

Derivativesdesignatedashedges: Cross-currencyswapcontracts$250.0$—$2.3$—$—Cashflow Commoditycontracts5.8——1.4.2Cashflow Total$—$2.3$1.4$.2

Derivativesnotdesignatedashedges: Foreigncurrencyexchangecontracts$1,336.6$6.3$—$6.0$—

Thefollowingtablesshowthecomponentsofthenetgains(losses)recognizedinincomerelatedtoderivative instruments:

(Inmillions)

202420232022

Gain(loss)onderivativesdesignatedasfairvaluehedges: Foreigncurrencyforwardcontracts-Marketing,generalandadministrativeexpense$(36.4)$—$—

Theimpactofthehedgeditemsassociatedwiththederivativeinthetableabovearerecordedtothesameincome statementlineasthederivativeinstrument.Thenetgains(losses)recognizedinincomerelatedtoourcross-currency swapcontractsandcommoditycontractswerenotmaterialin2024,2023or2022.

Thegainrecognizedintranslationforthenetinvestmenthedgeswasapproximately$15millionfortheyear endedDecember28,2024.

Thefollowingtableshowsthecomponentsofthenetgains(losses)recognizedinincomerelatedtothederivative instrumentsnotdesignatedashedges:

(Inmillions)StatementsofIncomeLocation202420232022 ForeigncurrencyexchangecontractsCostofproductssold$3.2$3.4$5.6 ForeigncurrencyexchangecontractsMarketing,generalandadministrative expense(15.2)5.5(4.3) $(12.0)$8.9$1.3

NOTE6.PENSIONANDOTHERPOSTRETIREMENTBENEFITS

DefinedBenefitPlans

Wesponsoranumberofdefinedbenefitplans,theaccrualofbenefitsundersomeofwhichhasbeenfrozen, coveringeligibleemployeesintheU.S.andcertainothercountries.Benefitspayabletoanemployeearebasedprimarily onyearsofserviceandtheemployee’scompensationduringthecourseofhisorheremploymentwithourcompany.

WearealsoobligatedtopayunfundedterminationindemnitybenefitstocertainemployeesoutsidetheU.S., whicharesubjecttoapplicableagreements,lawsandregulations.Nocostsrelatedtothesebenefitshavebeenincluded inthedisclosuresbelowbecausetheyhavenotbeensignificant.

PlanAssets

Assetsinournon-U.S.plansareinvestedinaccordancewithlocallyacceptedpracticesandprimarilyinclude equitysecurities,fixedincomesecurities,insurancecontractsandcash.Assetallocationsandinvestmentsvarybycountry andplan.Ourtargetplanassetinvestmentallocationforournon-U.S.plansintheaggregateisapproximately25%in equitysecurities,61%infixedincomesecuritiesandcash,and14%ininsurancecontractsandotherinvestments,subject toperiodicfluctuationsamongtheseassetclasses.

FairValueMeasurements

Thevaluationmethodologiesweuseforassetsmeasuredatfairvaluearedescribedbelow.

Cashisvaluedatnominalvalue.Cashequivalentsandmutualfundsarevaluedatfairvalueasdeterminedby quotedmarketprices,baseduponthenetassetvalue(“NAV”)ofsharesheldatyear-end.Pooledfundsarestructuredas collectivetrusts,notpubliclytradedandvaluedbycalculatingNAVperunitbasedontheNAVoftheunderlyingfunds/ trustsasapracticalexpedientforthefairvalueofthepooledfunds.Thepooledfundsarecategorizedbytheinvestment strategy,whichisprimarilyequityandfixedincomesecurities.Thepooledfundscategorizedasotherinvestmentsare primarilyinvestmentsinrealestatefunds.Insurancecontractsarevaluedatbookvalue,whichapproximatesfairvalue andiscalculatedusingtheprior-yearbalanceplusorminusinvestmentreturnsandchangesincashflows.

Thesemethodsmayproduceafairvaluecalculationthatmaynotbeindicativeofnetrealizablevalueorreflective offuturefairvalues.Whilewebelievethesevaluationmethodsareappropriateandconsistentwithothermarket participants,theuseofdifferentmethodologiesorassumptionstodeterminethefairvalueofcertainfinancialinstruments couldresultinadifferentfairvaluemeasurementatthereportingdate.

Thefollowingtablesetsforth,bylevelwithinthefairvaluehierarchy(asapplicable),non-U.S.planassetsatfair value:

FairValueMeasurementsUsing (Inmillions)Total Quoted Pricesin Active Markets (Level1) Significant Other Observable Inputs (Level2) Significant Other Unobservable Inputs (Level3) 2024 Cash$2.1$2.1$—$—

Totalnon-U.S.planassetsatfairvalue$663.2

(1) PooledfundsthataremeasuredatfairvalueusingtheNAVperunit(oritsequivalent)practicalexpedienthavenotbeenclassifiedinthefairvalue hierarchy.Thefairvalueamountspresentedinthistablereconciletototalnon-U.S.planassets.

ThefollowingtablepresentsareconciliationofLevel3non-U.S.planassetactivityduring2024and2023:

(Inmillions) Insurance Contracts

Level3Assets

PooledFunds–RealEstate Investment TrustsTotal

BalanceatDecember31,2022$37.1$8.3$45.4

Netrealizedandunrealizedgain(loss)1.3(2.3)(1.0) Purchases3.5—3.5

Settlements(2.8)—(2.8) Acquisition1.1—1.1

Impactofchangesinforeigncurrencyexchangerates2.4.42.8 BalanceatDecember30,202342.66.449.0

Netrealizedandunrealizedgain(loss)1.1(1.0).1 Purchases3.7—3.7

Settlements(5.8)—(5.8)

Impactofchangesinforeigncurrencyexchangerates(2.6)(.1)(2.7)

BalanceatDecember28,2024$39.0$5.3$44.3

PlanAssumptions

DiscountRate

Inconsultationwithouractuaries,weannuallyreviewanddeterminethediscountratesusedtovalueourpension andotherpostretirementobligations.Theassumeddiscountrateforeachpensionplanreflectsmarketratesforhigh qualitycorporatebondscurrentlyavailable.Ourdiscountrateisdeterminedbyevaluatingyieldcurvesconsistingoflarge populationsofhighqualitycorporatebonds.Theprojectedpensionbenefitpaymentstreamsarethenmatchedwithbond portfoliostodeterminearatethatreflectstheliabilitydurationuniquetoourplans.

Weusethefullyieldcurveapproachtoestimatetheserviceandinterestcostcomponentsofnetperiodicbenefit costforourpensionandotherpostretirementbenefitplans.Underthisapproach,weapplymultiplediscountratesfroma yieldcurvecomposedoftheratesofreturnonseveralhundredhigh-quality,fixedincomecorporatebondsavailableat themeasurementdate.Webelievethatthisapproachprovidesamoreprecisemeasurementofserviceandinterestcost byaligningthetimingofaplan’sliabilitycashflowstoitscorrespondingratesontheyieldcurve.

Long-termReturnonAssets

Wedeterminethelong-termrateofreturnassumptionforplanassetsbyreviewingthehistoricalandexpected returnsofboththeequityandfixedincomemarkets,takingintoaccountourassetallocation,thecorrelationbetween returnsinourassetclasses,andourmixofactiveandpassiveinvestments.Additionally,weevaluatecurrentmarket conditions,includinginterestrates,andreviewmarketdataforreasonablenessandappropriateness.

MeasurementDate

Wemeasuretheactuarialvalueofourbenefitobligationsandplanassetsusingthecalendarmonth-endclosestto ourfiscalyear-endandadjustforanycontributionsorothersignificanteventsbetweenthemeasurementdateandour fiscalyear-end.

PlanBalanceSheetReconciliations

Thefollowingtableprovidesareconciliationofbenefitobligations,planassets,fundedstatusoftheplansand accumulatedothercomprehensivelossforourdefinedbenefitplans:

PlanBenefitObligations

20242023

(Inmillions)U.S.Non-U.S.U.S.Non-U.S. Changeinprojectedbenefitobligations

Projectedbenefitobligationsatbeginningofyear$49.3$679.9$51.8$586.9 Servicecost—13.8—10.5 Interestcost2.224.12.424.7 Participantcontributions—4.7—4.5 Amendments—5.1—(.1) Actuarial(gain)loss(.5)2.81.451.3 Acquisition———1.2 Benefitspaid(6.4)(24.5)(6.3)(25.3) Settlements—(6.0)—(.6) Foreigncurrencytranslation—(35.5)—26.8

Projectedbenefitobligationsatendofyear$44.6$664.4$49.3$679.9 Accumulatedbenefitobligationsatendofyear$44.6$608.0$49.3$628.7

PlanAssets

PensionBenefits

20242023

(Inmillions)U.S.Non-U.S.U.S.Non-U.S. Changeinplanassets

Planassetsatbeginningofyear$—$663.2$—$585.3 Actualreturnonplanassets—41.6—54.6 Acquisition———1.1 Employercontributions6.415.56.317.2 Participantcontributions—4.7—4.5 Benefitspaid(6.4)(24.5)(6.3)(25.3) Settlements—(6.0)—(.6) Foreigncurrencytranslation—(35.0)—26.4 Planassetsatendofyear$—$659.5$—$663.2

FundedStatus

PensionBenefits

20242023

(Inmillions)U.S.Non-U.S.U.S.Non-U.S. Fundedstatusoftheplans

Otherassets$—$84.7$—$67.8

Otheraccruedliabilities(6.1)(3.2)(6.1)(.2) Long-termretirementbenefitsandotherliabilities(1) (38.5)(86.4)(43.2)(84.3) Planassetslessthanbenefitobligations$(44.6)$(4.9)$(49.3)$(16.7) (1) Inaccordancewithourfundingstrategy,wehavetheoptiontofundcertainofourU.S.liabilitieswithproceedsfromourcompany-ownedlife insurancepolicies.

PensionBenefits

20242023

U.S.Non-U.S.U.S.Non-U.S.

Weightedaverageassumptionsusedtodetermineyear-end benefitobligations

Discountrate5.43%3.95%4.86%3.78% Compensationrateincrease—2.80—2.73

ForU.S.andnon-U.S.planscombined,theprojectedbenefitobligationsandfairvaluesofplanassetsforpension planswithprojectedbenefitobligationsinexcessofplanassetswere$290millionand$156million,respectively,at year-end2024and$210millionand$76million,respectively,atyear-end2023.

ForU.S.andnon-U.S.planscombined,theaccumulatedbenefitobligationsandfairvaluesofplanassetsfor pensionplanswithaccumulatedbenefitobligationsinexcessofplanassetswere$274millionand$151million, respectively,atyear-end2024and$162millionand$43million,respectively,atyear-end2023.

AccumulatedOtherComprehensiveLoss

Thefollowingtableshowsthepre-taxamountsrecognizedin“Accumulatedothercomprehensiveloss”inthe ConsolidatedBalanceSheets:

PensionBenefits

20242023 (Inmillions)U.S.Non-U.S.U.S.Non-U.S. Netactuarialloss$8.9$69.4$9.6$73.2 Priorservice(credit)cost—2.3—(3.4) Netamountrecognizedinaccumulatedothercomprehensiveloss$8.9$71.7$9.6$69.8

Thefollowingtableshowsthepre-taxamountsrecognizedin“Othercomprehensiveloss(income)”:

PensionBenefits

202420232022 (Inmillions)U.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S. Netactuarial(gain)loss$(.2)$(3.4)$.9$32.6$(5.6)$(.8) Priorservicecredit—5.1—(.1)—— Amortizationofunrecognized:

Netactuarial(gain)loss(.5)(.4)(.4)2.1(.8)(2.5) Priorservicecredit(cost)—.5—.4—.4 Settlements—.1—.1(.1).1

Netamountrecognizedinothercomprehensiveloss (income)$(.7)$1.9$.5$35.1$(6.5)$(2.8)

PlanIncomeStatementReconciliations

Thefollowingtableshowsthecomponentsofnetperiodicbenefitcost:

PensionBenefits

202420232022 (Inmillions)U.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S. Servicecost$—$13.8$—$10.5$—$16.5 Interestcost2.224.12.424.71.210.8

Actuarial(gain)loss(.2)—.5—(3.5)— Expectedreturnonplanassets—(37.4)—(33.2)—(21.9) Amortizationofactuarialloss.5.4.4(2.1).82.5 Amortizationofpriorservice(credit)cost—(.5)—(.4)—(.4) Recognizedloss(gain)onsettlements—(.1)—(.1).1(.1) Netperiodicbenefitcost(credit)$2.5$.3$3.3$(.6)$(1.4)$7.4

Servicecostandcomponentsofnetperiodicbenefitcostotherthanservicecostwereincludedin“Marketing, generalandadministrativeexpense”and“Othernon-operatingexpense(income),net”intheConsolidatedStatementsof Income,respectively.

Thefollowingtableshowstheweightedaverageassumptionsusedtodeterminenetperiodiccost:

PensionBenefits

202420232022

PlanContributions

Wemakecontributionstoourdefinedbenefitplanssufficienttomeettheminimumfundingrequirementsof applicablelawsandregulations,plusadditionalamounts,ifany,wedeterminetobeappropriate.Thefollowingtablesets forthourexpectedcontributionsin2025:

FutureBenefitPayments

Thefuturebenefitpaymentsshownbelowreflecttheexpectedserviceperiodsforeligibleparticipants.

5.527.3

5.026.6

PostretirementHealthBenefits

WeprovidepostretirementhealthbenefitstocertainofourretiredU.S.employeesuptotheageof65undera cost-sharingarrangementandprovidesupplementalMedicarebenefitstocertainofourU.S.retireesovertheageof65. OurpostretirementhealthbenefitplanwasclosedtonewparticipantsretiringafterDecember31,2021.Ourpolicyisto fundthecostofthesepostretirementbenefitsfromoperatingcashflows.Whilewedonotintendtoterminatethese postretirementhealthbenefits,wemaydosoatanytime,subjecttoapplicablelawsandregulations.Atyear-end2024, ourpostretirementhealthbenefitsobligationandrelatedlossrecordedin“Accumulatedothercomprehensiveloss”were approximately$2millionand$9million,respectively.Atyear-end2023,ourpostretirementhealthbenefitsobligationand relatedlossrecordedin“Accumulatedothercomprehensiveloss”wereapproximately$2millionand$10million, respectively.Netperiodicbenefitcostwasnotmaterialin2024,2023or2022.

DefinedContributionPlans

Wesponsorvariousdefinedcontributionplansworldwide,thelargestofwhichistheAveryDennisonCorporation EmployeeSavingsPlan(“SavingsPlan”),a401(k)planforourU.S.employees.

Werecognizedexpenseof$31.9million,$30.3millionand$27.3millionin2024,2023and2022,respectively, relatedtoouremployercontributionsandemployermatchofparticipantcontributionstotheSavingsPlan.

68 2024AnnualReport | AveryDennisonCorporation

OtherRetirementPlans

Wehavedeferredcompensationplansandprogramsthatpermiteligibleemployeestodeferaportionoftheir compensation.Thecompensationvoluntarilydeferredbytheparticipant,togetherwithcertainemployercontributions, earnsspecifiedandvariableratesofreturn.Asofyear-end2024and2023,wehadaccrued$99.0millionand $88.2million,respectively,forourobligationsundertheseplans.Aportionoftheinterestoncertainofourcontributions maybeforfeitedbyparticipantsiftheiremploymentterminatesbeforeage55otherthanbyreasonofdeathordisability.

OurDirectorsDeferredEquityCompensationProgramallowsournon-employeedirectorstoelecttoreceivetheir cashcompensationindeferredstockunits(“DSUs”)issuedunderourequityplan.Additionally,twolegacydeferred compensationplanshadDSUsthatwereissuedunderourthen-activeequityplans.Dividendequivalents,representing thevalueofdividendspersharepaidonsharesofourcommonstockandcalculatedwithreferencetothenumberof DSUsheldasofaquarterlydividendrecorddate,arecreditedintheformofadditionalDSUsontheapplicabledividend payabledate.DSUsareconvertedintosharesofourcommonstock,lessfractionalshares,andissuedtoaparticipating directoruponhisorherseparationfromourBoard.Approximately0.04millionand0.1millionDSUswereoutstandingas ofyear-end2024and2023,respectively,withanaggregatevalueof$8millionand$19million,respectively.

Weholdcompany-ownedlifeinsurancepolicies,theproceedsfromwhicharepayabletousuponthedeathof coveredparticipants.Thecashsurrendervaluesofthesepolicies,netofoutstandingloans,whichareincludedin“Other assets”intheConsolidatedBalanceSheets,were$247.4millionand$228.4millionatyear-end2024and2023, respectively.

NOTE7.COMMITMENTSANDLEASES

Supplementalcostinformationrelatedtoleasesisshownbelow.

Leasecostsrelatedtofinanceleaseswerenotmaterialin2024,2023or2022. Supplementalbalancesheetinformationrelatedtoleasesisshownbelow. (Inmillions)BalanceSheetLocation20242023 Assets

FinanceShort-termborrowingsandcurrentportionoflong-termdebt andfinanceleases4.36.3

(1) Financeleaseassetsarenetofaccumulatedamortizationof$18.7millionand$14.6millionasofDecember28,2024andDecember30,2023, respectively.

Supplementalcashflowinformationrelatedtoleasesisshownbelow.

(Inmillions)202420232022

Cashpaidforamountsincludedinmeasurementofoperatinglease liabilities$61.0$55.8$60.5 Operatingleaseassetsobtainedinexchangeforoperatinglease liabilities

Cashflowsrelatedtofinanceleaseswerenotmaterialin2024,2023or2022.

WeightedaverageremainingleasetermanddiscountrateinformationrelatedtoleasesasofDecember28,2024 andDecember30,2023isshownbelow.

OperatingandfinanceleaseliabilitiesbymaturitydatefromDecember28,2024areshownbelow. (Inmillions)

Less:imputedinterest (35.3)(1.6) Presentvalueofleaseliabilities$225.7$13.3

AsofDecember28,2024,wehadnosignificantoperatingorfinanceleasesthathadnotyetcommenced.

NOTE8.CONTINGENCIES

LegalProceedings

Weareinvolvedinvariouslawsuits,claims,inquiriesandotherregulatoryandcompliancematters,mostofwhich areroutinetothenatureofourbusiness.Whenitisprobablethatalosswillbeincurredandwherearangeoftheloss canbereasonablyestimated,thebestestimatewithintherangeisaccrued.Whenthebestestimatewithintherange cannotbedetermined,thelowendoftherangeisaccrued.Theultimateresolutionoftheseclaimscouldaffectfuture resultsofoperationsshouldourexposurebemateriallydifferentfromourestimatesorshouldweincurliabilitiesthat werenotpreviouslyaccrued.Probableinsurancereimbursementsarenotoffsetagainstpotentialliabilities.

Becauseoftheuncertaintiesassociatedwithclaimsresolutionandlitigation,futureexpensestoresolvelegal proceedingscouldbehigherthantheliabilitieswehaveaccrued.Ifinformationweretobecomeavailablethatallowedus toreasonablyestimateanamounthigherorlowerthanwhatwehaveaccruedintherangeofpotentialexpenses determinedtobeprobable,wewouldadjustouraccruedliabilitiesaccordingly.Additionallawsuits,claims,inquiriesand otherregulatoryandcompliancematterscouldariseinthefuture.Therangeofexpensesforresolvinganyfuturematters 70 2024AnnualReport | AveryDennisonCorporation

wouldbeassessedastheyarise;untilthen,arangeofpotentialexpensesfortheirresolutioncannotbedetermined. Baseduponcurrentinformation,webelievethattheimpactoftheresolutionoflegalproceedingswouldnotbe, individuallyorintheaggregate,materialtoourfinancialposition,resultsofoperationsorcashflows.

WewerepartytoalitigationinwhichADASAInc.(“Adasa”),anunrelatedthirdparty,allegedthatcertainofthe RFIDproductswithinourSolutionsGroupreportablesegmentinfringeditspatent.ThecasewasfiledonOctober24, 2017intheUnitedStatesDistrictCourtintheDistrictofOregon(EugeneDivision)andwascaptionedADASAInc.v. AveryDennisonCorporation.Werecordedacontingentliabilityintheamountof$26.6millionrelatedtothismatterin thesecondquarterof2021basedonajuryverdictissuedonMay14,2021.

Weappealedthefirstinstancejudgmentassociatedwiththejuryverdict–whichresultedinadditionalpotential liabilityfortheRFIDtagssoldduringtheperiodfromthejuryverdicttotheissuanceofthefirstinstancejudgment,a higherroyaltyapplicabletotagssoldafterthejudgmentandaroyaltyonadditionallate-disclosedtags,aswellas sanctions,prejudgmentinterest,costs,andattorneys’fees,aswellasanongoingroyaltyonin-scopetagssoldafter October14,2021–totheUnitedStatesCourtofAppealsfortheFederalCircuit(the“CAFC”).Duringthefourthquarter of2022,theCAFCissueditsopinion,reversingthegrantofsummaryjudgmentofvalidityastoanticipationand obviousness,vacatingthesanctionsruling,andremandingthecaseforretrialwithrespecttovalidityforanticipationand obviousnessoverthepriorart.TheCAFCaffirmedsubject-mattereligibilityanddamagesifliabilitywasdeterminedon retrial.Onremand,thetrialcourtwasrequiredtoreconsidertheamountofsanctionsconsistentwiththeCAFC’s instructiontolimitsanctionstothelate-disclosedtags.

AftertheU.S.SupremeCourtdeniedourwritofcertioraripetitiononMay30,2023,theretrialbeganonJuly10, 2023.OnJuly18,2023,thejuryintheretrialissuedaverdictthatAdasa’spatentisvalid.Weincreasedourcontingent liabilitytoreflectourthen-bestestimateoftheanticipatedjudgmentto$80.4millionasofJuly1,2023,withan expectationtocontinueadjustingouraccrualquarterly,asappropriate.AsofDecember30,2023,ourcontingentliability forthismatterwas$82.9million.

OnJanuary25,2024,thedistrictcourtissuedarevisedsanctionsorderloweringthesanctionsagainstusfrom approximately$20millionto$5.2millionbasedonarateof$0.0025/late-reportedtag,whichwasconsistentwiththe amountwehadaccrued.InFebruary2024,thedistrictcourtissueditsdecisiondenyingourmotionforjudgmentasa matteroflawandourmotionforanewtrial.OnMarch7,2024,theCourtissuedanamendedfinaljudgment,assessing damages,pre-andpost-judgmentinterest,costs,attorneys’fees,sanctions,andongoingroyalties.

OnApril25,2024,weenteredintoaSettlementAgreement,LicenseandMutualReleasewithAdasapursuantto which,amongotherthings,(i)weagreedtopay$75.0milliontoAdasawithoutanyconcessionsoradmissionsofliability; (ii)Adasaagreedtograntusaworldwide,nonexclusive,nontransferablefully-paidup,andongoingroyalty-freeperpetual license,withouttherighttosublicense,tothepatentsatissueinthelitigation;and(iii)thepartiesmutuallyreleasedall claimsagainstoneanother.Wepaidtheagreed-uponsettlementamounttoAdasaonApril26,2024.Nocourtapproval ofthesettlementwasrequired;however,asrequiredbythesettlementagreement,AdasafiledaStipulationof SatisfactionofJudgmentwiththetrialcourtonApril29,2024.

EnvironmentalExpenditures

Environmentalexpendituresaregenerallyexpensed.Whenitisprobablethatalosswillbeincurredandwherea rangeofthelosscanbereasonablyestimated,thebestestimatewithintherangeisaccrued.Whenthebestestimate withintherangecannotbedetermined,thelowendoftherangeisaccrued.Theultimateresolutionofthesematters couldaffectfutureresultsofoperationsshouldourexposurebemateriallydifferentfromourestimatesorshouldweincur liabilitiesthatwerenotpreviouslyaccrued.Probableinsurancereimbursementsarenotoffsetagainstpotentialliabilities. Wereviewourestimatesofthecostsofcomplyingwithenvironmentallawsrelatedtoremediationandcleanupof varioussites,includingsitesinwhichgovernmentalagencieshavedesignatedusasapotentiallyresponsibleparty (“PRP”).However,environmentalexpendituresfornewlyacquiredassetsandthosethatextendorimprovetheeconomic usefullifeofexistingassetsarecapitalizedandamortizedovertheshorteroftheestimatedusefullifeoftheacquired assetortheremaininglifeoftheexistingasset.

AsofDecember28,2024,wehavebeendesignatedbytheU.S.EnvironmentalProtectionAgency(“EPA”)and/or otherresponsiblestateagenciesasaPRPattenwastedisposalorwasterecyclingsitesthatarethesubjectofseparate investigationsorproceedingsconcerningallegedsoiland/orgroundwatercontamination.Nosettlementofourliability

relatedtoanyofthesesiteshasbeenagreedupon.WeareparticipatingwithotherPRPsatthesesitesandanticipate thatourshareofremediationcostswillbedeterminedpursuanttoagreementsthatwenegotiatewiththeEPAorother governmentalauthorities.

Theseestimatescouldchangeasaresultofchangesinplannedremedialactions,remediationtechnologies,site conditions,theestimatedtimetocompleteremediation,environmentallawsandregulations,andotherfactors.Because oftheuncertaintiesassociatedwithenvironmentalassessmentandremediationactivities,ourfutureexpensesto remediatethesesitescouldbehigherthantheliabilitieswehaveaccrued.Ifinformationweretobecomeavailablethat allowedustoreasonablyestimateanamounthigherorlowerthanwhatwehaveaccruedintherangeofpotential expenses,wewouldadjustourenvironmentalliabilitiesaccordingly.Inaddition,wemaybeidentifiedasaPRPat additionalsitesinthefuture.Therangeofexpensesforremediationofanyfuture-identifiedsiteswouldbeaddressedas theyarise;untilthen,arangeofexpensesfortheirremediationcannotbedetermined.

Theactivityrelatedtoourenvironmentalliabilitiesin2024and2023isshownbelow:

Approximately$5millionand$11million,respectively,ofthisbalancewasclassifiedasshort-termandincludedin “Othercurrentliabilities”intheConsolidatedBalanceSheetsasofDecember28,2024andDecember30,2023.

NOTE9.FAIRVALUEMEASUREMENTS

RecurringFairValueMeasurements

Assetsandliabilitiescarriedatfairvalue,measuredonarecurringbasis,asofDecember28,2024,wereas follows:

FairValueMeasurementsUsing (Inmillions)Total Quoted Pricesin Active Markets (Level1) Significant Other Observable Inputs (Level2) Significant Other Unobservable Inputs (Level3) Assets

Investments$48.0$24.2$23.8$— Derivativeassets41.2.440.8— Bankdrafts5.25.2—— Liabilities

Derivativeliabilities$41.5$.4$41.1$— Contingentconsiderationliabilities4.8——4.8

Assetsandliabilitiescarriedatfairvalue,measuredonarecurringbasis,asofDecember30,2023wereas follows:

FairValueMeasurementsUsing

(Inmillions)Total Quoted Pricesin Active Markets (Level1) Significant Other Observable Inputs (Level2) Significant Other Unobservable Inputs (Level3) Assets

Investments$37.8$19.6$18.2$—

Derivativeassets8.6—8.6—

Bankdrafts5.35.3—— Liabilities

Derivativeliabilities$7.6$1.6$6.0$— Contingentconsiderationliabilities10.0——10.0

Investmentsincludedfixedincomesecurities(primarilyU.S.governmentandcorporatedebtsecurities)measuredat fairvalueusingquotedprices/bidsandamoneymarketfundmeasuredatfairvalueusingNAV.AsofDecember28,2024, investmentsof$1.5million,$38.1million,and$8.4millionwereincludedin“Cashandcashequivalents,”“Othercurrent assets,”and“Otherassets,”respectively,intheConsolidatedBalanceSheets.AsofDecember30,2023,investmentsof $2.7millionand$35.1millionwereincludedin“Cashandcashequivalents”and“Othercurrentassets,”respectively,inthe ConsolidatedBalanceSheets.Derivativesthatareexchange-tradedaremeasuredatfairvalueusingquotedmarketpricesand classifiedwithinLevel1ofthevaluationhierarchy.Derivativesmeasuredbasedonforeigncurrencyexchangerateinputsthat arereadilyavailableinpublicmarketsareclassifiedwithinLevel2ofthevaluationhierarchy.Bankdrafts(maturitiesgreater thanthreemonths)arevaluedatfacevalueduetotheirshort-termnatureandwereincludedin“Othercurrentassets”inthe ConsolidatedBalanceSheets.

Contingentconsiderationliabilitiesrelatetoestimatedearn-outpaymentsassociatedwithcertainacquisitions completedin2023,2022and2021,whicharesubjecttotheacquiredcompaniesachievingcertainpost-acquisition performancetargets.TheseliabilitieswererecordedbasedontheexpectedpaymentsandhavebeenclassifiedasLevel3. Activityrelatedtocontingentconsiderationwasimmaterialin2024and2023.

Inadditiontotheinvestmentsdescribedabove,weholdventureinvestmentsthathadatotalcarryingvalueof approximately$45millionand$71millionasofDecember28,2024andDecember30,2023,respectively,whichwas includedin“Otherassets”intheConsolidatedBalanceSheets.Startinginthesecondquarterof2024,webeganrevaluing certainventureinvestmentsbasedonLevel1inputs;thefairvalueoftheseinvestmentswas$8.4millionasofDecember28, 2024.Relatedtotheseinvestments,werecognized$19.2millioninnetlossesin2024,nonetgainsorlossesin2023andnet gainsof$13.5millionin2022in“Otherexpense(income),net”intheConsolidatedStatementsofIncome.

NOTE10.NETINCOMEPERCOMMONSHARE

Netincomepercommonsharewascomputedasfollows:

(Inmillions,exceptpershareamounts)202420232022 (A)Netincome$704.9$503.0$757.1

(B)Weightedaveragenumberofcommonsharesoutstanding80.480.781.6

Dilutiveshares(additionalcommonsharesissuableunderstockbasedawards) .3.4.6

(C)Weightedaveragenumberofcommonsharesoutstanding, assumingdilution

80.781.182.2

Netincomepercommonshare(A)÷(B)$8.77$6.23$9.28

Netincomepercommonshare,assumingdilution(A)÷(C)$8.73$6.20$9.21

Certainstock-basedcompensationawardswereexcludedfromthecomputationofnetincomepercommonshare, assumingdilution,becausetheywouldnothavehadadilutiveeffect.Stock-basedcompensationawardsexcludedfrom thecomputationtotaled0.1millionsharesin2024and2023andwerenotsignificantin2022.

| 2024AnnualReport 73

OurAmendedandRestatedCertificateofIncorporationauthorizesfivemillionsharesof$1parvaluepreferred stock(ofwhichnosharesareoutstanding),withrespecttowhichourBoardmayfixtheseriesandtermsofissuance,and 400millionsharesof$1parvaluevotingcommonstock.

Fromtimetotime,ourBoardauthorizestherepurchaseofsharesofouroutstandingcommonstock.Repurchased sharesmaybereissuedunderourlong-termincentiveplanorusedforothercorporatepurposes.In2024,we repurchasedapproximately1.2millionsharesofourcommonstockatanaggregatecostof$247.5million.In2023,we repurchasedapproximately0.8millionsharesofourcommonstockatanaggregatecostof$137.5million.

InApril2022,ourBoardauthorizedtherepurchaseofsharesofourcommonstockwithafairmarketvalueofupto $750million,excludinganyfees,commissionsorotherexpensesrelatedtosuchpurchasesandinadditiontoanyamount outstandingunderourpreviousBoardauthorization.Sharesofourcommonstockintheaggregateamountof $346.9millionremainedauthorizedforrepurchaseunderthisBoardauthorizationasofDecember28,2024.Board authorizationsremainineffectuntilsharesintheamountauthorizedthereunderhavebeenrepurchased.

TreasurySharesReissuance

Wefundaportionofouremployee-relatedcostsusingsharesofourcommonstockheldintreasury.Wereduce capitalinexcessofparvaluebasedonthegrantdatefairvalueofvestingawardsandrecordnetgainsorlosses associatedwithusingtreasurysharestoretainedearnings.

AccumulatedOtherComprehensiveLoss

Thechangesin“Accumulatedothercomprehensiveloss”(netoftax)for2024and2023wereasfollows:

(Inmillions)

BalanceasofDecember31,2022$(314.0)$(51.3)$1.3$—$(364.0)

Othercomprehensiveincome(loss) beforereclassifications,netoftax(14.6)(25.2)(7.0)—(46.8) Reclassificationstonetincome,netoftax—(1.0)3.7—2.7

Netcurrent-periodothercomprehensive income(loss),netoftax(14.6)(26.2)(3.3)—(44.1) BalanceasofDecember30,2023$(328.6)$(77.5)$(2.0)$—$(408.1) Othercomprehensiveincome(loss) beforereclassifications,netoftax(46.9)(1.3)(5.4)2.0(51.6) Reclassificationstonetincome,netoftax—.82.8—3.6

Netcurrent-periodothercomprehensive income(loss),netoftax(46.9)(.5)(2.6)2.0(48.0) BalanceasofDecember28,2024$(375.5)$(78.0)$(4.6)$2.0$(456.1)

(1) The2024changesinforeigncurrencytranslationincludedapretaxgainrelatedtotheforeigncurrencyforwardcontractsandzero-costcollars accountedforasnetinvestmenthedges.RefertoNote5,“FinancialInstruments,”totheConsolidatedFinancialStatementsformoreinformation.

Thefollowingtablesetsforththeincometaxexpense(benefit)allocatedtoeachcomponentofother comprehensiveincome(loss):

(Inmillions)202420232022

Foreigncurrencytranslation:

Translationgain(loss)$.1$1.2$(7.0) Pensionandotherpostretirementbenefits:

Netgain(loss)recognizedfromactuarialgain/lossandprior servicecost/credit(.6)(8.2).5

Reclassificationstonetincome.4(.3)1.1 Cashflowhedges:

Gain(loss)recognizedoncashflowhedges(1.7)(2.2)1.6 Reclassificationstonetincome.91.2.4 Fairvaluehedges:

Changesinexcludedcomponentsoffairvaluehedges.6—— Incometaxexpense(benefit)allocatedtocomponentsofother comprehensiveincome(loss)$(.3)$(8.3)$(3.4)

NOTE12.LONG-TERMINCENTIVECOMPENSATION

Stock-BasedAwards

Stock-BasedCompensation

Wegrantourannualstock-basedcompensationawardstoeligibleemployeesinMarchandnon-employee directorsinMay.Certainawardsgrantedtoretirement-eligibleemployeesoneormoreyearsbeforetheirretirementdate vestuponretirement;theseawardsareaccountedforasfullyvestedoneyearfromthedateofgrant.

Our2017IncentiveAwardPlan,along-termincentiveplanforemployeesandnon-employeedirectors,allowsus tograntstock-basedcompensationawards–includingstockoptions,RSUs,PUs,MSUsandDSUs–oracombinationof theseandotherawards.Underthisplan,5.4millionsharesweremadeavailableforissuance,witheachfullvalueaward countedas1.5sharesforpurposesofthenumberofsharesauthorizedforissuance.FullvalueawardsincludeRSUs,PUs andMSUs.

Stock-basedcompensationexpenseandtherelatedrecognizedtaxbenefitwereasfollows:

(Inmillions)202420232022

Thisexpensewasincludedin“Marketing,generalandadministrativeexpense”intheConsolidatedStatementsof Income.

AsofDecember28,2024,wehadapproximately$38millionofunrecognizedcompensationexpenserelatedto unvestedstock-basedawards,whichisexpectedtoberecognizedovertheremainingweightedaveragerequisiteservice periodofapproximatelytwoyears.

StockOptions

Stockoptionsmaybegrantedtoemployeesandnon-employeedirectorsatnolessthan100%ofthefairmarket valueofourcommonstockonthedateofthegrantandgenerallyvestoverafour-yearperiod.Optionsexpiretenyears fromthedateofgrant.

ThefairvalueofstockoptionsisestimatedasofthedateofgrantusingtheBlack-Scholesoption-pricingmodel. Thismodelrequiresinputassumptionsforourexpecteddividendyield,expectedstockpricevolatility,risk-freeinterest rateandtheexpectedoptionterm.

Theweightedaveragegrantdatefairvaluepershareforstockoptionsgrantedin2023was$47.65.Nostock optionsweregrantedinfiscalyears2024or2022.

Thefollowingassumptionsareusedinestimatingthefairvalueofgrantedstockoptions:

Risk-freeinterestrateisbasedonthe52-weekaverageoftheTreasury-Bondratethathasatermcorresponding totheexpectedoptionterm.For2023,itwas3.84%.

Expectedstockpricevolatilityrepresentsanaverageoftheimpliedandhistoricalvolatility.For2023,itwas23.90%.

Expecteddividendyieldisbasedonthecurrentannualdividenddividedbythe12-monthaverageofourmonthly stockpricepriortogrant.For2023,itwas1.84%.

Expectedoptiontermisdeterminedbasedonhistoricalexperienceunderourlong-termincentiveplans.For2023, itwas6.31years.

Thefollowingtablesummarizesinformationrelatedtostockoptions:

Numberof options (inthousands) Weighted average exerciseprice

Weighted average remaining contractuallife (inyears)

Aggregate intrinsicvalue (inmillions)

OutstandingatDecember30,2023204.1$109.924.36$18.7 Exercised(141.1)73.96

OutstandingatDecember28,202463.0$190.548.68$—

Optionsvestedandexpectedtovestat December28,202454.8190.548.68—

OptionsexercisableatDecember28,2024—$—$—

Thetotalintrinsicvalueofstockoptionsexercisedwas$19.5millionin2024.Wereceivedapproximately$10million in2024fromtheexerciseofstockoptions,andthetaxbenefitassociatedwiththeseexercisedoptionswas$4.8million.There werenostockoptionexercisesin2023andthestockoptionexercisesin2022wereimmaterial.Theintrinsicvalueofastock optionisbasedontheamountbywhichthemarketvalueofourstockexceedstheexercisepriceoftheoption.

PerformanceUnits(“PUs”)

PUsareperformance-basedawardsgrantedtoeligibleemployeesunderourequityplan.PUsarepayableinsharesof ourcommonstockattheendofathree-orfour-yearcliffvestingperiodprovidedthatthedesignatedperformanceobjectives areachievedattheendoftheperiod.Overtheperformanceperiod,theestimatednumberofsharesofourcommonstock issuableuponvestingisadjustedupwardordownwardbasedontheprobabilityofachievingtheperformanceobjectives establishedfortheaward.Thenumberofsharesissuedgenerallyrangesfrom0%to200%ofthetargetsharesatthetimeof grant;howeverthesharesissuedforcertainspecialPUawardscanrangeupto300%ofthetargetsharesattimeofgrant. TheweightedaveragegrantdatefairvalueforPUswas$224.82,$180.12and$163.97in2024,2023and2022, respectively.

ThefollowingtablesummarizesinformationrelatedtoawardedPUs:

(1) Reflectsadjustmentsforabove-targetperformanceforthe2021-2023PUs.

76 2024AnnualReport | AveryDennisonCorporation

ThefairvalueofvestedPUswas$20.6millionin2024,$22.7millionin2023and$20.2millionin2022.

Market-LeveragedStockUnits(“MSUs”)

MSUsareperformance-basedawardsgrantedtoeligibleemployeesunderourequityplan.MSUsarepayableinshares ofourcommonstockoverafour-yearperiodprovidedthatthedesignatedperformanceobjectiveisachievedasoftheendof eachvestingperiod.MSUsaccruedividendequivalentsduringthevestingperiod,whichareearnedandpaidonlyatvesting providedthat,ataminimum,threshold-levelperformanceisachieved.Thenumberofsharesearnedisbaseduponour absolutetotalshareholderreturnateachvestingdateandcanrangefrom0%to200%ofthetargetamountofMSUssubject tovesting.EachofthefourvestingperiodsrepresentsonetrancheofMSUsandthefairvalueofeachofthesefourtranches wasdeterminedusingtheMonte-Carlosimulationmodel,whichutilizesmultipleinputvariables,includingexpectedstock pricevolatilityandotherassumptions,toestimatetheprobabilityofachievingtheperformanceobjectiveestablishedforthe award.TheweightedaveragegrantdatefairvalueforMSUswas$259.75,$192.53and$141.80in2024,2023and2022, respectively.

ThefollowingtablesummarizesinformationrelatedtoawardedMSUs:

(1) Reflectsadjustmentsforabove-targetperformanceforeachofthetranchesofMSUsvestingin2024. ThefairvalueofvestedMSUswas$14.6millionin2024,$16.1millionin2023and$19.9millionin2022.

RestrictedStockUnits(“RSUs”)

RSUsareservice-basedawardsgrantedtoeligibleemployeesandnon-employeedirectorsunderourequityplan. RSUsgrantedtoemployeesgenerallyvestoveraperiodbetweenoneandfouryears.RSUsgrantedtonon-employee directorsgenerallyvestinoneyear.ThevestingofRSUsissubjecttocontinuedservicethroughtheapplicablevestingdate.If thatconditionisnotmet,unvestedRSUsaregenerallyforfeited.TheweightedaveragegrantdatefairvalueforRSUswas $210.74,$175.88and$168.34in2024,2023and2022,respectively.

ThefollowingtablesummarizesinformationrelatedtoawardedRSUs:

ThefairvalueofvestedRSUswas$3.2million,$2.7millionand$2.8millionin2024,2023and2022,respectively. Cash-BasedAwards Long-TermIncentiveUnits(“LTIUnits”)

LTIUnitsarecash-basedawardsgrantedtoemployeesunderourlong-termincentiveunitplan.LTIUnitsare service-basedawardsthatgenerallyvestratablyoverafour-yearperiod.Thesettlementvalueequalsthenumberof AveryDennisonCorporation | 2024AnnualReport 77

vestedLTIUnitsmultipliedbytheaverageofthehighandlowmarketpricesofourcommonstockonthevestingdate. Thecompensationexpenserelatedtotheseawardsisamortizedonastraight-linebasisandthefairvalueisremeasured usingtheestimatedpercentageofunitsexpectedtobeearnedmultipliedbytheaverageofthehighandlowmarket pricesofourcommonstockateachquarter-end.

Wealsograntcash-basedawardsintheformofperformanceandmarket-leveragedLTIUnitstoeligible employees.PerformanceLTIUnitsarepayableincashattheendofathree-yearcliffvestingperiodprovidedthatcertain performanceobjectivesareachievedattheendoftheperformanceperiod.Market-leveragedLTIUnitsarepayablein cashandvestratablyoveraperiodoffouryears.Thenumberofperformanceandmarket-leveragedLTIUnitsearnedat vestingisadjustedupwardordownwardbasedupontheprobabilityofachievingtheperformanceobjectivesestablished fortherespectiveawardandtheactualnumberofunitsissuedcanrangefrom0%to200%ofthedesignatedtargetunits subjecttovesting.Performanceandmarket-leveragedLTIUnitsareremeasuredusingtheestimatedpercentageofunits expectedtobeearnedmultipliedbytheaverageofthehighandlowmarketpricesofourcommonstockateach quarter-endovertheirrespectiveperformanceperiods.ThecompensationexpenserelatedtoperformanceLTIUnitsis amortizedonastraight-linebasisovertheirrespectiveperformanceperiods.Thecompensationexpenserelatedto market-leveragedLTIUnitsisamortizedonagraded-vestingbasisovertheirrespectiveperformanceperiods.

ThecompensationexpenserelatedtoLTIUnitswas$14.9millionin2024,$16.3millionin2023and$11.5million in2022.Thisexpensewasincludedin“Marketing,generalandadministrativeexpense”intheConsolidatedStatements ofIncome.ThetotalrecognizedtaxbenefitrelatedtoLTIUnitswas$3.6millionin2024,$3.9millionin2023and $2.7millionin2022.

NOTE13.COSTREDUCTIONACTIONS

RestructuringCharges

Wehaveplansthatprovideeligibleemployeeswithseverancebenefitsintheeventofaninvoluntarytermination. Wecalculateseveranceusingthebenefitformulasundertheapplicableplans.Werecordrestructuringchargesfrom qualifyingcostreductionactionsforseveranceandotherexitcosts(includingassetimpairmentchargesandleaseand othercontractcancellationcosts)whentheyareprobableandestimable.

2025Actions

Inthefourthquarter2024,werecorded$13.1millioninrestructuringchargesrelatedtoour2025actions.These chargesconsistedofseveranceandrelatedcostsforthereductionofapproximately90positions,aswellasasset impairmentcharges,atnumerouslocationsacrossourcompany,reflectingactionsinourSolutionsGroupreportable segment.

2023Actions

During2024,werecorded$28.8millioninrestructuringcharges,netofreversals,relatedtoour2023actions. Thesechargesconsistedofseveranceandrelatedcostsforthereductionofapproximately1,280positions,aswellas assetimpairmentcharges,atnumerouslocationsacrossourcompany.During2023,werecorded$49.0millionin restructuringcharges,netofreversals,relatedtotheseactions.Thesechargesconsistedofseveranceandrelatedcosts forthereductionofapproximately1,450positions,aswellasassetimpairmentcharges,atnumerouslocationsacrossour company.

Inthethirdquarterof2023,weapprovedarestructuringplan(the“2023Plan”)tofurtheroptimizetheEuropean footprintofourMaterialsGroupreportablesegmentbyreducingoperationsinamanufacturingfacilityinBelgium.The cumulativechargesassociatedwiththe2023Planconsistedofseveranceandrelatedcostsforthereductionof approximately210positions,aswellasassetimpairmentcharges.Werecorded$30.4millionin2023inrestructuring chargesrelatedtothe2023Plan.Theactivitiesrelatedtothe2023Planareexpectedtobesubstantiallycompletedby mid-2025.

Accrualsforseveranceandrelatedcostsandleasecancellationcostswereincludedin“Othercurrentliabilities” and“Long-termretirementbenefitsandotherliabilities”intheConsolidatedBalanceSheets.Assetimpairmentcharges werebasedontheestimatedmarketvalueoftheassets,lesssellingcosts,ifapplicable.Restructuringchargeswere includedin“Otherexpense(income),net”intheConsolidatedStatementsofIncome.

78 2024AnnualReport | AveryDennisonCorporation

During2024,restructuringchargesandpaymentswereasfollows:

(Inmillions)

Accrualat December30, 2023 Charges, Netof Reversals Cash Payments Non-cash Impairment Foreign Currency Translation Accrualat December28, 2024 2025Actions

Severanceandrelatedcosts$—$10.0$—$—$—$10.0 Assetimpairmentcharges—3.1—(3.1)—— 2023Actions

Severanceandrelatedcosts27.725.4(43.3)—(.6)9.2 Assetimpairmentcharges—3.0—(3.0)—— Leasecancellationcosts—.4(.6)——(.2) Total$27.7$41.9$(43.9)$(6.1)$(.6)$19.0

During2023,restructuringchargesandpaymentswereasfollows:

(Inmillions)

Accrualat December31, 2022 Charges, Netof Reversals

Accrualat December30, 2023 2023Actions

Severanceandrelatedcosts$—$72.1$(45.1)$—$.7$27.7 Assetimpairmentcharges—8.3—(8.3)—— 2019/2020Actions

Severanceandrelatedcosts5.1(1.0)(4.1)——— Total$5.1$79.4$(49.2)$(8.3)$.7$27.7

ThetablebelowshowsthetotalamountofrestructuringchargesincurredbyreportablesegmentandCorporate. (Inmillions)202420232022

RestructuringchargesbyreportablesegmentandCorporate

MaterialsGroup$5.7$52.4$(1.0) SolutionsGroup35.823.27.9 Corporate .43.8.8

Total $41.9$79.4$7.7

NOTE14.TAXESBASEDONINCOME

Taxesbasedonincomewereasfollows: (Inmillions)202420232022

Current:

U.S.federaltax$36.0$42.5$29.4 Statetaxes10.69.08.8

Foreigntaxes214.9160.8177.7 261.5212.3215.9

Deferred:

U.S.federaltax(8.7)(29.0)5.8 Statetaxes(3.3)(3.5).9 Foreigntaxes(.9)11.919.6 (12.9)(20.6)26.3 Provisionforincometaxes$248.6$191.7$242.2

TheprincipalitemsaccountingforthedifferencebetweentaxescomputedattheU.S.federalstatutoryrateand taxesrecordedwereasfollows:

(Inmillions)202420232022

TaxprovisioncomputedatU.S.federalstatutoryrate(1)

Increase(decrease)intaxesresultingfrom:

$200.2$145.9$209.9

Statetaxes,netoffederaltaxbenefit2.72.611.8

Foreignearningstaxedatdifferentrates(1) 49.550.451.7

GILTIhigh-taxexclusionelection,net(2) (6.2)(10.0)(11.9) Valuationallowance15.92.6(5.0) U.S.federalresearchanddevelopmenttaxcredits(7.7)(8.3)(6.5) Taxcontingenciesandauditsettlements1.911.9(4.3) Otheritems,net(7.7)(3.4)(3.5)

Provisionforincometaxes$248.6$191.7$242.2

(1) AllyearsincludedcertainU.S.internationaltaxprovisionsandforeignearningstaxedintheU.S.,netofcredits. (2) In2024,werecognized$6.2millionfromourcurrentyearGILTIexclusionelection.In2023,werecognized$4.4millionfromour2023GILTIexclusion electionand$5.6millionrelatedtotheelectionmadeonour2022U.S.federaltaxreturn.In2022,werecognized$11.9millionofbenefitrelatedtoa GILTIexclusionelectionmadeonour2021U.S.federaltaxreturn.

IncomebeforetaxesfromourU.S.andforeignoperationswasasfollows: (Inmillions)202420232022

Oureffectivetaxratewas26.1%,27.6%and24.2%forfiscalyears2024,2023and2022,respectively.

Our2024provisionforincometaxesincluded(i)$15.9millionofnettaxchargerelatedtothetaxonglobal intangiblelow-taxedincome(“GILTI”)ofourforeignsubsidiariesandtherecognitionofforeignwithholdingtaxeson currentyearearnings,partiallyoffsetbythebenefitfromforeign-derivedintangibleincome(“FDII”);(ii)$15.9millionof taxchargefromvaluationallowancesduetotheuncertaintyoftherealizationofcertaindeferredtaxassets;and (iii)excesstaxbenefitsassociatedwithstock-basedpayments,andreturn-to-provisionbenefitsrelatedtoour2023U.S. federaltaxreturn,partiallyoffsetbynettaxchargeprimarilyfromtherecognitionofuncertaintaxpositionsandtaxaudit settlementsincertainforeignjurisdictions.

Our2023provisionforincometaxesincluded(i)$16.4millionofnettaxchargerelatedtothetaxonGILTIofour foreignsubsidiariesandtherecognitionofforeignwithholdingtaxesoncurrentyearearnings,partiallyoffsetbythe benefitfromFDII;(ii)$14.7millionofreturn-to-provisionbenefitprimarilyrelatedtoourGILTIexclusionelectionand benefitsfromadditionalforeigntaxcreditsrecognizedundertemporaryreliefgrantedbytheInternalRevenueService (“IRS”)inJuly2023,relatedtoour2022U.S.federaltaxreturn,(iii)$10.5millionoftaxchargerelatedtonon-deductible expensesresultingfromtheimpactoftheArgentinepesoremeasurementloss;and(iv)$9.5millionofnettaxcharge primarilyfromtherecognitionofuncertaintaxpositionsincertainforeignjurisdictions,partiallyoffsetbydecreasesin certaintaxreservesasaresultofclosingtaxyears.

Our2022provisionforincometaxesincluded(i)$18.8millionofnettaxchargerelatedtothetaxonGILTIofour foreignsubsidiariesandtherecognitionofforeignwithholdingtaxesoncurrentyearearnings,partiallyoffsetbythe benefitfromFDII;(ii)$17.3millionofreturn-to-provisionbenefit,including$11.9millionrelatedtoaGILTIexclusion electionandalowernettaxchargefromotherinternationalinclusionitemsrelatedtoour2021U.S.federaltaxreturn; and(iii)nettaxbenefitprimarilyfromdecreasesincertaintaxreserves,includinginterestandpenalties,asaresultof closingtaxyearsandthesettlementofcertainforeigntaxaudits.

DeferredTaxes

Deferredtaxesreflectthetemporarydifferencesbetweentheamountsatwhichassetsandliabilitiesarerecorded forfinancialreportingpurposesandtheamountsutilizedfortaxpurposes.Theprimarycomponentsofthetemporary differencesthatgaverisetoourdeferredtaxassetsandliabilitieswereasfollows:

(1) Reflectgrossamountsbeforejurisdictionalnettingofdeferredtaxassetsandliabilities.

Weassessavailablepositiveandnegativeevidencetoestimateifsufficientfuturetaxableincomeisexpectedtobe generatedtouseexistingdeferredtaxassets.Onthebasisofourassessment,werecordvaluationallowancesonlywith respecttotheportionofthedeferredtaxassetthatisnotmore-likely-than-nottoberealized.Ourassessmentofthefuture realizabilityofourdeferredtaxassetsreliesheavilyonourforecastedearningsincertainjurisdictionsdeterminedbythe mannerinwhichweoperateourbusinessandtherelevantcarryforwardperiods.Anychangestoouroperationsmayaffect ourassessmentofdeferredtaxassetsconsideredrealizableifthepositiveevidencenolongeroutweighsthenegative evidence.

NetoperatinglosscarryforwardsofforeignsubsidiariesatDecember28,2024andDecember30,2023were $466millionand$481million,respectively.Taxcreditcarryforwardsofbothdomesticandforeignsubsidiariesat December28,2024andDecember30,2023totaled$15millionand$9million,respectively.Ifunused,foreignnet operatinglossesandtaxcreditcarryforwardswillexpireasfollows:

Certainindefinite-livedforeignnetoperatinglossesmayrequiredecadestobefullyutilizedunderourcurrent businessmodel.

AtDecember28,2024,wehadnetoperatinglosscarryforwardsincertainstatesof$575millionbeforetax effects.Basedonourestimatesoffuturestatetaxableincome,itismore-likely-than-notthatthemajorityofthese carryforwardswillnotberealizedbeforetheyexpire.Accordingly,avaluationallowancehasbeenrecordedon $548millionofthesecarryforwards.

AsofDecember28,2024,ourprovisionforincometaxesdidnotmateriallybenefitfromapplicabletaxholidaysin foreignjurisdictions.

UnrecognizedTaxBenefits

AsofDecember28,2024,ourunrecognizedtaxbenefitstotaled$81million,$74millionofwhich,ifrecognized, wouldreduceourannualeffectiveincometaxrate.AsofDecember30,2023,ourunrecognizedtaxbenefitstotaled $88million,$75millionofwhich,ifrecognized,wouldreduceourannualeffectiveincometaxrate.

Whereapplicable,weaccruepotentialinterestandpenaltiesrelatedtounrecognizedtaxbenefitsinincometax expense.Theinterestandpenaltieswerecognizedduringfiscalyears2024,2023and2022werenotmaterial, individuallyorinaggregate,totheConsolidatedStatementsofIncome.Wehave$17millionand$16millionofaccrued interestandpenalties,netoftaxbenefit,intheConsolidatedBalanceSheetsatDecember28,2024andDecember30, 2023,respectively.

Areconciliationofthebeginningandendingamountsofunrecognizedtaxbenefitsissetforthbelow.

(Inmillions)

20242023

Balanceatbeginningofyear$88.0$69.5 Additionsfortaxpositionsofcurrentyear11.415.4 Additions(reductions)fortaxpositionsofprioryears,net(7.2)8.0 Settlementswithtaxauthorities(4.6)(1.8) Expirationsofstatutesoflimitations(3.7)(3.9) Changesduetotranslationofforeigncurrencies(2.8).8

Balanceatendofyear $81.1$88.0

Itisreasonablypossiblethat,duringthenext12months,wemayrealizeadecreaseinouruncertaintaxpositions, includinginterestandpenalties,ofapproximately$6million,primarilyasaresultofclosingtaxyears.

Theamountofincometaxeswepayissubjecttoongoingauditsbytaxingjurisdictionsaroundtheworld.Our estimateofthepotentialoutcomeofanyuncertaintaxissueissubjecttoourassessmentoftherelevantrisks,facts,and circumstancesexistingatthetime.Webelievewehaveadequatelyprovidedforreasonablyforeseeableoutcomesrelated tothesematters.However,ourfutureresultsmayincludefavorableorunfavorableadjustmentstoourestimatedtax liabilitiesintheperiodtheassessmentsaremadeorresolved,whichmayimpactoureffectivetaxrate.Thefinal determinationoftaxauditsandanyrelatedlegalproceedingscouldmateriallydifferfromamountsreflectedinourtax provisionforincometaxesandtherelatedliabilities.Todate,weandourU.S.subsidiarieshavecompletedtheIRS’ ComplianceAssuranceProcessthrough2021.Withlimitedexceptions,wearenolongersubjecttoincometax examinationsbytaxauthoritiesforyearspriorto2010.

SegmentReporting

Wehavethefollowingreportablesegments:

•MaterialsGroup–manufacturesandsellspressure-sensitivelabelmaterials,filmsforgraphicandreflective products,performancetapesandotheradhesiveproductsforindustrial,medicalandotherapplications,as wellasfastenersolutions.

•SolutionsGroup–designs,manufacturesandsellsawidevarietyofbrandingandinformationsolutions, includingbrandandpricetickets,tagsandlabels(includingRFIDinlays),andrelatedservices,suppliesand equipment.

OurPresidentandChiefExecutiveOfficeristhechiefoperatingdecisionmaker(“CODM”)andisresponsibleforthe allocationofresourcesandevaluationofperformanceofourreportablesegments.TheCODM’soversightincludes establishingperformancetargetstoadvanceourlong-termstrategyandincreasestockholdervalue,allocatingcapitalto ourreportablesegmentstoachievethosetargets,developingcompensationprogramstoincentivizesegmentleadersto achievethosetargets,andanalyzingkeyperformancemetricstotrackprogressagainstthosetargets.TheCODMreviews theperformanceofeachsegmentbycomparingeachreportablesegment’scurrentperiodresultswithitsannualoperating plantargets,itsmostrecentquarterlyforecast,andtheprioryeartoassesshowsegmentresultsimpactedourcompany’s overallresults.

DisaggregatedRevenueInformation

Disaggregatedrevenueinformationisshownbelowinthemannerthatbestreflectshowthenature,amount,timing anduncertaintyofourrevenueandcashflowsareaffectedbyeconomicfactors.RevenuefromourMaterialsGroup reportablesegmentisattributedtogeographicareasbasedonthelocationfromwhichproductsareshipped.Revenue fromourSolutionsGroupreportablesegmentisshownbyproductgroup.

(Inmillions)

Netsalestounaffiliatedcustomers MaterialsGroup: U.S.

202420232022

$1,715.6$1,687.8$1,892.1 Europe,theMiddleEastandNorthAfrica2,091.02,007.12,396.2 Asia 1,388.01,315.21,390.3 LatinAmerica 489.7474.2470.1 Other 328.7327.0346.4

TotalMaterialsGroup6,013.05,811.36,495.1 SolutionsGroup:

Apparelandother1,875.51,661.41,851.2 IdentificationSolutionsandVestcom867.2891.6693.0 TotalSolutionsGroup2,742.72,553.02,544.2 Netsalestounaffiliatedcustomers$8,755.7$8,364.3$9,039.3

RevenuefromourMaterialsGroupreportablesegmentbyproductgroupisshownbelow.

(Inmillions)

Netsalestounaffiliatedcustomers MaterialsGroup:

202420232022

Labels,graphicsandreflectives$5,266.0$5,076.8$5,725.7 Tapesandadhesives676.0665.3696.3 Other 71.069.273.1

TotalMaterialsGroup$6,013.0$5,811.3$6,495.1

Ourtotalcompanyrevenuebygeographicareaisshownbelow.Revenueisattributedtogeographicareasbased onthelocationfromwhichproductsareshipped.

(Inmillions)

Netsalestounaffiliatedcustomers

202420232022

U.S. $2,613.4$2,578.3$2,565.9 Europe,theMiddleEastandNorthAfrica2,418.62,306.72,683.6 Asia

Netsalestounaffiliatedcustomers$8,755.7$8,364.3$9,039.3

NetsalestounaffiliatedcustomersinAsiaincludedsalesinChina(includingHongKong)of$1.40billionin2024, $1.30billionin2023and$1.50billionin2022.

Nosinglecustomerrepresented10%ormoreofournetsalesinyear-end2024,2023or2022.Ourtenlargest customersbynetsalesintheaggregaterepresentedapproximately16%ofournetsalesduring2024,2023and2022.

SegmentInformation

Duringthefourthquarterof2024,wemodifiedoursegmentperformancemeasuretoexcludeotherexpense (income),net.ThesechangesalignwithhowourCODMevaluatessegmentperformanceandallocatesresources.Prior periodshavebeenconformedtothecurrentperiodpresentation.Segmentadjustedoperatingincomeisdefinedas incomebeforetaxesadjustedforotherexpense(income),net;interestexpense,othernon-operatingexpense(income), net;andotheritems.Segmentresultsandreconciliationtoincomebeforetaxesarepresentedbelow.

(Inmillions)

MaterialsGroup

202420232022

Netsalestounaffiliatedcustomers$6,013.0$5,811.3$6,495.1

Segmentexpense(1) 5,088.35,022.15,649.2

Segmentadjustedoperatingincome$924.7$789.2$845.9

SolutionsGroup

Netsalestounaffiliatedcustomers$2,742.7$2,553.0$2,544.2

Segmentexpense(1) 2,453.42,301.02,234.1

Segmentadjustedoperatingincome$289.3$252.0$310.1 (1) Segmentexpenseincludedcostofsalesandmarketing,generalandadministrativeexpenseandexcludedotherexpense(income),net,andother items.

(Inmillions)

Segmentadjustedoperatingincome

202420232022

MaterialsGroup$924.7$789.2$845.9

SolutionsGroup 289.3252.0310.1

Total 1,214.01,041.21,156.0

Corporateexpense (91.9)(77.4)(82.6)

Otherexpense(income),netandotheritems(78.3)(180.9).6 Interestexpense (117.0)(119.0)(84.1)

Othernon-operatingexpense(income),net26.730.89.4

Incomebeforetaxes$953.5$694.7$999.3

AdditionalSegmentInformation

Additionalfinancialinformationbyreportablesegmentisshownbelow.

Intersegmentsalesarerecordedatornearmarketpricesandareeliminatedindeterminingconsolidatednetsales. Wedonotdisclosetotalassetsbyreportablesegmentsinceweneithergeneratenorreviewthatinformationinternally. Asourreportingstructureisneitherorganizednorreviewedinternallybycountry,resultsbyindividualcountryarenot provided.

Depreciationandamortizationexpense(1)

Depreciationandamortizationexpense$312.2$298.4$290.7

(1) Corporatecapitalexpendituresanddepreciationandamortizationexpenseareallocatedtothereportablesegmentsbasedontheirpercentageof consolidatednetsales.

(2) Capitalexpendituresforproperty,plantandequipmentincludedaccruals.

Entity-wideInformation

Otherexpense(income),netbytypewereasfollows:

(Inmillions)

Otherexpense(income),netbytype

Restructuringcharges,netofreversals:

202420232022

Severanceandrelatedcosts,netofreversals$35.4$70.8$7.6

Assetimpairmentandleasecancellationcharges6.58.6.1

Otheritems:

LossesfromArgentinepesoremeasurementandBlueChipSwaptransactions16.429.9— (Gain)lossonventureinvestments19.21.5(13.5)

Outcomesoflegalmattersandsettlements,net(1) (6.2)64.36.3

Transactionandrelatedcosts.35.3.3 (Gain)lossonsalesofassets—.5(1.4)

Otherexpense(income),net$71.6$180.9$(.6)

(1) Amountfor2023includedanadditionalcontingentliabilityrelatedtotheAdasalitigationintheamountof$56.3million.RefertoNote8, “Contingencies”formoreinformation.

Long-livedassets(includingproperty,plantandequipment,net,andoperatingleaseassets)inourU.S.and non-U.S.operationswereasfollows:

Long-livedassetslocatedinChina(includingHongKong)wereapproximately$288millionin2024and $305millionin2023.

NOTE16.SUPPLEMENTALFINANCIALINFORMATION

Inventories

Inventoriesatyear-endwereasfollows:

Property,PlantandEquipment,Net

Majorclassesofproperty,plantandequipment,statedatcost,atyear-endwereasfollows:

Property,plantandequipment3,993.53,970.4 Accumulateddepreciation (2,406.8)(2,344.6)

Property,plantandequipment,net$1,586.7$1,625.8

Software

Capitalizedsoftwarecostsatyear-endwereasfollows:

Softwareamortizationexpensewas$25.1millionin2024,$23.4millionin2023and$29.5millionin2022.

CloudComputingArrangements

Capitalizedimplementationcostsatyear-endwereasfollows:

Capitalizedimplementationcostamortizationexpensewas$8.0millionin2024and$4.5millionin2023.

AllowanceforCreditLosses

Giventheshort-termnatureoftradereceivables,ourallowanceforcreditlossesisbasedonthefinancialcondition ofcustomers,theagingofreceivablebalances,ourhistoricalcollectionsexperience,andcurrentandexpectedfuture macroeconomicandmarketconditions.Balancesarewrittenoffintheperiodinwhichtheyaredeterminedtobe uncollectible.

Theactivityrelatedtoourallowanceforcreditlosseswasasfollows:

Theprovisionforcreditlosseswas$6.9millionin2022.

ResearchandDevelopment

Researchanddevelopmentexpense,whichwasincludedin“Marketing,generalandadministrativeexpense”in theConsolidatedStatementsofIncome,wasasfollows:

(Inmillions)

202420232022

Researchanddevelopmentexpense$137.8$135.8$136.1

SupplementalCashFlowInformation

Cashpaidforinterestandincometaxeswasasfollows:

(Inmillions)

202420232022

Interest $111.8$109.9$80.9 Incometaxes,netofrefunds226.8234.9204.8

ForeignCurrencyEffects

Gainsandlossesresultingfromforeigncurrencytransactionsareincludedinincomeintheperiodincurred. Transactionsinforeigncurrencies(includingreceivables,payablesandloansdenominatedincurrenciesotherthanthe functionalcurrency),includinghedgingimpacts,werenotmaterialin2024,2023or2022.

DeferredRevenue

Deferredrevenueprimarilyrelatestoconstrainedvariableconsiderationonsupplyagreementsforsalesof products,aswellastopaymentsreceivedinadvanceofperformanceunderacontract.Deferredrevenueisrecognizedas revenueasorwhenweperformunderacontract.

ThefollowingtableshowstheamountsandbalancesheetlocationsofdeferredrevenueasofDecember28,2024 andDecember30,2023:

(Inmillions)December28,2024December30,2023

Othercurrentliabilities$15.5$18.1

Long-termretirementbenefitsandotherliabilities1.21.3

Totaldeferredrevenue$16.7$19.4

RevenuerecognizedfromamountsincludedindeferredrevenueasofDecember30,2023was$17.5millionin 2024.RevenuerecognizedfromamountsincludedindeferredrevenueasofDecember31,2022was$21.0millionin 2023.RevenuerecognizedfromamountsincludedindeferredrevenueasofJanuary1,2022was$23.5millionin2022. Thisrevenuewasincludedin“Netsales”intheConsolidatedStatementsofIncome.

SupplierFinancePrograms

Wehaveagreementswiththird-partyfinancialinstitutionstofacilitatepaymentstosuppliers.Thesethird-party financialinstitutionsoffervoluntarysupplychainfinanceprogramsthatenablecertainofoursuppliers,atthesupplier’s solediscretion,tosellourpaymentobligationstoafinancialinstitutionontermsdirectlynegotiatedwiththefinancial institution.Participatingsuppliersdecidewhichpaymentobligationsaresoldtothefinancialinstitutionandwehaveno economicinterestinasupplier’sdecisiontosellthesepaymentobligations.Wemakepaymentstothefinancialinstitution ontheinvoiceduedate,regardlessofwhetheranindividualinvoiceissoldbythesuppliertothefinancialinstitution.Our obligationstooursuppliers,includingamountsdueandscheduledpaymentdates,arenotimpactedbysuppliers’ decisionstosellamountsunderthesearrangements.Amountsdueunderoursupplychainfinanceprogramsareincluded inaccountspayableinourConsolidatedBalanceSheetsandactivitiesrelatedtotheseprogramsarepresentedas operatingactivitiesinourConsolidatedStatementsofCashFlows.AsofDecember28,2024andDecember30,2023, theamountsduetofinancialinstitutionsforsuppliersthatparticipateintheseprogramswere$384.6millionand $397.4million,respectively.

Theactivityrelatedtooursupplierfinanceprogramswasasfollows:

During2019,theArgentinegovernmentinstitutedexchangecontrolsrestrictingtheabilityofentitiesand individualstoexchangeArgentinepesosforforeigncurrenciesorremitforeigncurrencyoutofArgentina.Duetothese currencyexchangerestrictions,marketsinArgentinausealegaltradingmechanismknownastheBlueChipSwapthat allowsentitiestotransferU.S.dollarsinandoutofArgentina.During2024,weenteredintoBlueChipSwaptransactions thatresultedinlossesofapproximately$10millionthatwerecordedin“Otherexpense(income),net”inourConsolidated StatementsofIncome.PurchasesandtheproceedsfromsalesofArgentineBlueChipSwapsecuritieswereincludedin investingactivitiesinourConsolidatedStatementsofCashFlows.

Item9.CHANGESINANDDISAGREEMENTSWITHACCOUNTANTSONACCOUNTINGANDFINANCIAL DISCLOSURE

None.

Item9A.CONTROLSANDPROCEDURES

DisclosureControlsandProcedures.Asoftheendoftheperiodcoveredbythisreport,wecarriedoutan evaluation,underthesupervisionandwiththeparticipationofourmanagement,includingourChiefExecutiveOfficerand ourChiefFinancialOfficer,oftheeffectivenessofthedesignandoperationofourdisclosurecontrolsandprocedures(as definedinRule13a-15(e)and15d-15(e)oftheExchangeAct).Baseduponthatevaluation,ourChiefExecutiveOfficer andChiefFinancialOfficerconcludedthatourdisclosurecontrolsandprocedureswereeffectiveinprovidingreasonable assurancethatinformationisrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedinthe SEC’srulesandforms,andthatsuchinformationisaccumulatedandcommunicatedtoourmanagement,includingour ChiefExecutiveOfficerandourChiefFinancialOfficerasappropriate,toallowfortimelydecisionsregardingrequired disclosure.

Management’sReportonInternalControlOverFinancialReporting. Weareresponsibleforestablishingand maintainingadequateinternalcontroloverfinancialreporting(asdefinedinRule13a-15(f)and15d-15(f)ofthe ExchangeAct).Underthesupervisionandwiththeparticipationofourmanagement,includingourChiefExecutiveOfficer andourChiefFinancialOfficer,weconductedanevaluationoftheeffectivenessofourinternalcontroloverfinancial reportingbasedupontheframeworkin InternalControl–IntegratedFramework(2013) issuedbytheCommitteeof SponsoringOrganizationsoftheTreadwayCommission.Basedonthatevaluation,ourmanagementconcludedthatour internalcontroloverfinancialreportingwaseffectiveasofDecember28,2024.

TheeffectivenessofourinternalcontroloverfinancialreportingasofDecember28,2024hasbeenauditedby PricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm,asstatedintheReportofIndependent RegisteredPublicAccountingFirmcontainedinItem8ofthisreport.

ChangesinInternalControloverFinancialReporting. Therehavebeennochangesinourinternalcontrolover financialreportingduringthemostrecentfiscalquarterthathavemateriallyaffected,orarereasonablylikelytomaterially affect,ourinternalcontroloverfinancialreporting.

Item9B.OTHERINFORMATION

TherewerenoRule10b5-1tradingarrangementsornon-Rule10b5-1tradingarrangements(asdefinedin Item408(c)ofRegulationS-K)adoptedorterminatedbyanyofourdirectorsorexecutiveofficersduringthefourth quarterof2024.

Item9C.DISCLOSUREREGARDINGFOREIGNJURISDICTIONSTHATPREVENTINSPECTIONS

Notapplicable.

Item10.DIRECTORS,EXECUTIVEOFFICERSANDCORPORATEGOVERNANCE

TheinformationconcerningdirectorsandcorporategovernancerequiredbythisItemisincorporatedhereinby referencefromthedefinitiveproxystatementforourAnnualMeetingofStockholderstobeheldonApril24,2025(our “2025ProxyStatement”),whichwillbefiledwiththeSECpursuanttoRegulation14Awithin120daysoftheendofthe fiscalyearcoveredbythisreport.TheinformationconcerningexecutiveofficersrequiredbythisItemappears,inpart,as referencedbelow.Ifapplicable,informationconcerninganylatefilingsunderSection16(a)oftheExchangeActis incorporatedbyreferencefromour2025ProxyStatement.

TheinformationrequiredbythisItemconcerningourAuditCommitteeisincorporatedbyreferencefromour2025 ProxyStatement.

INFORMATIONABOUTOUREXECUTIVEOFFICERS(1)

NameandPositionAgeExecutiveOfficerSince

DeonM.Stander Presidentand ChiefExecutiveOfficer

MitchellR.Butier ExecutiveChairman

DannyG.Allouche SeniorVicePresident,Chief StrategyandCorporate DevelopmentOfficer,andInterim ChiefFinancialOfficer

GregoryS.Lovins SeniorVicePresidentand ChiefFinancialOfficer(2)

DeenaBaker-Nel SeniorVicePresidentand ChiefHumanResourcesOfficer

NicholasR.Colisto SeniorVicePresidentand ChiefInformationOfficer

FormerPositionswithinPastFiveYears/ OfficerPositionswithAveryDennison

56August20162022-2023PresidentandChiefOperatingOfficer 2015-2022VicePresidentandGeneralManager,RBIS 2013-2015VicePresidentandGeneralManager, GlobalCommercialandInnovation,RBIS 2010-2012VicePresidentandGeneralManager, GlobalCommercial,RBIS

53March20072022-2023ChairmanandChiefExecutiveOfficer 2019-2022Chairman,PresidentandChiefExecutive Officer

2016-2019PresidentandChiefExecutiveOfficer 2015-2016PresidentandChiefOperatingOfficer 2014-2015President,ChiefOperatingOfficerand ChiefFinancialOfficer 2010-2014SeniorVicePresidentandChiefFinancial Officer 2007-2010VicePresident,GlobalFinance,and ChiefAccountingOfficer

50November20242022-2024SeniorVicePresidentandChiefStrategy andCorporateDevelopmentOfficer 2021-2022VicePresident,ChiefStrategyand CorporateDevelopmentOfficer 2016-2021VicePresident,CorporateDevelopment 2015-2016VicePresident,TreasuryandCorporate Development

52March20172017VicePresidentandInterimChiefFinancial Officer 2016-2017VicePresidentandTreasurer 2011-2016VicePresident,GlobalFinance,Materials Group

54September20202020-2022VicePresidentandChiefHuman ResourcesOfficer 2018-2020VicePresident,HumanResources,LGM 2015-2018VicePresident,HumanResources,RBIS

58September20202018-2022VicePresidentandChiefInformation Officer 2012-2018SeniorVicePresidentandChief InformationOfficer,XylemInc.

NameandPositionAgeExecutiveOfficerSince

FranciscoMelo President,SolutionsGroup

DivinaF.Santiago VicePresident,Controller

IgnacioJ.Walker SeniorVicePresidentand ChiefLegalOfficer

RyanD.Yost President,MaterialsGroup

FormerPositionswithinPastFiveYears/ OfficerPositionswithAveryDennison

51April20232022-2023SeniorVicePresidentandGeneral Manager,AveryDennisonSmartrac 2013-2022VicePresidentandGeneralManager, AveryDennisonSmartrac 2012-2013VicePresidentGlobalInventoryAccuracy andLossPrevention,Information SolutionsMarketDevelopment

55September20232022-2023VicePresident,Finance 2008-2022SeniorDirector,Finance

48September20202020-2022VicePresidentandChiefLegalOfficer 2020VicePresidentandAssistantGeneral Counsel,Americas

2018-2019 VicePresidentandAssistantGeneral Counsel

2013-2017 VicePresidentandAssistantGeneral Counsel,RBIS

49March20242023-2024VicePresidentandGeneralManager, IdentificationSolutionsandVestcom 2021-2023VicePresidentandGeneralManager, IdentificationSolutions

2019-2021 VicePresidentandGeneralManager, PrinterSolutions

(1) Executiveofficersaregenerallyelectedonthedateofourannualstockholdermeetingtoserveaone-yeartermoruntiltheirsuccessorsareduly electedandqualified.

(2) Onleaveofabsence

InsiderTradingPolicy

Wehaveadoptedaninsidertradingpolicygoverningthepurchase,sale,and/orotherdispositionsofoursecurities byourdirectors,officersandemployeesthatwebelieveisreasonablydesignedtopromotecompliancewithinsider tradinglaws,rulesandregulations,andapplicableexchangelistingstandards.Ourinsidertradingpolicyisfiledas Exhibit19tothisAnnualReportonForm10-K.

Item11.EXECUTIVECOMPENSATION

TheinformationrequiredbythisItemisincorporatedbyreferencefromour2025ProxyStatement.

Item12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENTANDRELATED STOCKHOLDERMATTERS

TheinformationrequiredbythisItemisincorporatedbyreferencefromour2025ProxyStatement.

Item13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONS,ANDDIRECTORINDEPENDENCE

TheinformationrequiredbythisItemisincorporatedbyreferencefromour2025ProxyStatement.

Item14.PRINCIPALACCOUNTANTFEESANDSERVICES

TheinformationrequiredbythisItemisincorporatedbyreferencefromour2025ProxyStatement.

Item15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES

(a)FinancialStatements,FinancialStatementScheduleandExhibits

(1)FinancialstatementsfiledaspartofthisreportarelistedontheaccompanyingIndextoFinancial Statements.

(2)Allfinancialstatementschedulesareomittedsincetherequiredinformationisnotpresentorisnot presentinamountssufficienttorequiresubmissionoftheschedule,orbecausetheinformation requiredisincludedintheconsolidatedfinancialstatementsandnotesthereto.

(3)ExhibitsfiledasapartofthisreportarelistedontheaccompanyingExhibitIndex.Eachmanagement contractorcompensatoryplanorarrangementrequiredtobefiledasanexhibittothisForm10-Kis identifiedassuchontheExhibitIndex.

(b)TheexhibitsrequiredtobefiledbyItem601ofRegulationS-KaresetforthontheaccompanyingExhibit Index.

FortheYearEndedDecember28,2024

ExhibitNo.ExhibitName

3.1(i)AmendedandRestatedCertificateof Incorporation,asfiledonApril28,2011 withtheOfficeofDelawareSecretaryof State

3.1(ii)CertificateofAmendmenttoAmendedand RestatedCertificateofIncorporation, effectiveasofApril25,2024.

3.1(iii)AmendedandRestatedBylaws,effectiveas ofApril25,2024

4.1Indenture,datedasofMarch15,1991, betweenRegistrantandSecurityPacific NationalBank,asTrustee(the“1991 Indenture”)

4.2FirstSupplementalIndenture,datedasof March16,1993,betweenRegistrantand BankAmericaNationalTrustCompany,as successorTrustee(the“Supplemental Indenture”)

4.3Officers’Certificateestablishingaseriesof Securitiesentitled“Medium-TermNotes, SeriesC”underthe1991Indenture,as amendedbytheSupplementalIndenture

4.4Indenture,datedasofJuly3,2001, betweenRegistrantandChaseManhattan BankandTrustCompany,National Association,astrustee(the“2001 Indenture”)

4.5Officers’CertificateestablishingSecurities entitled“6.000%Notesdue2033”under the2001Indenture

Originally Filedas ExhibitNo.Filing(1)

3.1CurrentReportonForm8-K,filedApril29, 2011

3.1CurrentReportonForm8-K,filedApril26, 2024

3.2CurrentReportonForm8-K, filedApril26,2024

4.1RegistrationStatementonFormS-3(File No.33-39491),filedMarch19,1991

4.4RegistrationStatementonFormS-3(File No.33-59642),filedMarch17,1993

4.1CurrentReportonForm8-K,filedMay12, 1995

4.1RegistrationStatementonFormS-3(File No.333-64558),filedJuly3,2001

4.2CurrentReportonForm8-K,filed January16,2003

4.66.000%NotesDue20334.4CurrentReportonForm8-K,filed January16,2003

4.7Indenture,datedasofNovember20,2007, betweenRegistrantandBankofNewYork

4.8ThirdSupplementalIndenture,datedasof April8,2013,betweenRegistrantandBank ofNY

4.2CurrentReportonForm8-K,filed November20,2007

4.2CurrentReportonForm8-K,filedApril8, 2013

4.9FourthSupplementalIndenture,datedasof March3,2017,betweenRegistrantand TheBankofNewYorkMellonTrust Company,N.A.(“BNYMellon”)asTrustee (includingFormof1.250%SeniorNotes due2025onExhibitAthereto)

4.10FifthSupplementalIndenture,datedasof December6,2018,betweenRegistrantand BNYMellon,asTrustee(includingFormof 4.875%SeniorNotesdue2028onExhibit Athereto)

4.11SixthSupplementalIndenture,datedasof March11,2020,betweenRegistrantand BNYMellon,asTrustee(includingFormof 2.650%SeniorNotesdue2030onExhibit Athereto)

4.12SeventhSupplementalIndenture,datedas ofAugust18,2021,betweenRegistrant andBNYMellon,asTrustee

4.13EighthSupplementalIndenture,datedasof August18,2021,betweenRegistrantand BNYMellon,asTrustee(includingFormof 2.250%SeniorNotesdue2032onExhibit Athereto)

4.14NinthSupplementalIndenture,datedasof March15,2023,betweenRegistrantand TheBankofNewYorkMellonTrust Company,N.A.,asTrustee(includingForm of5.750%SeniorNotesdue2033on ExhibitAthereto)

4.15TenthSupplementalIndenturebetween RegistrantandTheBankofNewYork MellonTrustCompany,N.A.,asTrustee, datedasofNovember4,2024(including Formof3.750%SeniorNotesdue2034on ExhibitAthereto)

Originally Filedas ExhibitNo.Filing(1)

4.2CurrentReportonForm8-K,filedMarch3, 2017

4.2CurrentReportonForm8-K,filed December6,2018

4.2CurrentReportonForm8-K,filedMarch11, 2020

4.2CurrentReportonForm8-Kfiledon August18,2021

4.3CurrentReportonForm8-Kfiledon August18,2021

4.2CurrentReportonForm8-Kfiledon March15,2023

4.2CurrentReportonForm8-K,filedon November4,2024

4.16†DescriptionofSecuritiesN/AN/A

10.1CreditAgreement,datedasofJune26, 2024,amongRegistrant,asborrower;a syndicateoflenderspartythereto;Mizuho Bank,Ltd.,asadministrativeagent;Mizuho Bank,Ltd.andBankofAmerica,N.A.,as syndicationagents;andCitibank,N.A.,as documentationagent

10.2*AmendedandRestatedSupplemental ExecutiveRetirementPlan(“SERP”)

2024AnnualReport | AveryDennisonCorporation

10.1CurrentReportonForm8-K,filedJune27, 2024

10.11.1QuarterlyReportonForm10-Q,filed August12,2009

ExhibitNo.ExhibitName

10.3*CompleteRestatementandAmendmentof ExecutiveVariableDeferredCompensation Plan(“EVDCP”)

Originally Filedas ExhibitNo.Filing(1)

10.161994AnnualReportonForm10-K,filed March30,1995

10.4*AmendmentNo.1toEVDCP10.16.11999AnnualReportonForm10-K,filed March30,2000

10.5*AmendedandRestated2005Directors VariableDeferredCompensationPlan

10.18.2QuarterlyReportonForm10-Q,filed May10,2011

10.6*AmendedandRestatedStockOptionand IncentivePlan(“EquityPlan”) A2012ProxyStatementonSchedule14A, filedMarch9,2012

10.7*FirstAmendmenttoEquityPlan10.202014AnnualReportonForm10-K,filed February25,2015

10.8*2017IncentiveAwardPlan(“2017Plan”)B2017ProxyStatementonSchedule14A, filedMarch10,2017

10.9*AmendedandRestatedAnnualIncentive Plan

10.10*CompleteRestatementandAmendmentof ExecutiveDeferredRetirementPlan (“EDRP”)

10.1QuarterlyReportonForm10-Q,filed May1,2020

10.281994AnnualReportonForm10-K,filed March30,1995

10.11*AmendmentNo.1toEDRP10.28.11999AnnualReportonForm10-K,filed March30,2000

10.12*AmendmentNo.2toEDRP10.28.22001AnnualReportonForm10-K,filed March4,2002

10.13*2005ExecutiveVariableDeferred RetirementPlan,amendedandrestated January1,2019

ChangeofControlSeverancePlan

SeverancePlan

4.4RegistrationStatementonFormS-8,filed July30,2024

10.17*AmendedandRestatedLong-Term IncentiveUnitPlan(“LTIUnitPlan”) 10.2QuarterlyReportonForm10-Q,filed May1,2020

10.18*FormofRestrictedStockUnitAgreement underEquityPlan

10.19*FormofPerformanceUnitAgreementunder EquityPlan

February26,2014

February26,2014

10.20*FormofMarket-LeveragedStockUnit AgreementunderEquityPlan 10.402013AnnualReportonForm10-K,filed February26,2014

10.21*FormofLong-TermIncentiveUnit AgreementunderLTIUnitPlan

10.22*FormofDirectorRestrictedStockUnit Agreementunder2017Plan

10.23*FormofEmployeeMarket-LeveragedStock UnitAgreementunder2017Plan

10.24*FormofEmployeePerformanceUnit Agreementunder2017Plan

10.25*FormofEmployeeRestrictedStockUnit Agreementunder2017Plan

10.26*FormofEmployeeNon-QualifiedStock OptionAgreementunder2017Plan

10.27*OfferLettertoGregoryLovins,dated July10,2017

10.28*OfferLettertoDeenaBaker-Nel,dated August26,2020

10.29*OfferLettertoIgnacioWalker,dated August25,2020

10.30*OfferLettertoFranciscoMelo,dated February27,2023

10.31*OfferLettertoMitchellButier,dated May25,2023

10.32*OfferLettertoDeonStander,datedMay25, 2023

10.33OfferLettertoRyanYost,dated February12,2024

10.34†OfferLettertoDannyAllouche,dated November14,2024

10.412013AnnualReportonForm10-K,filed February26,2014

10.2QuarterlyReportonForm10-Q,filed August1,2017

10.3QuarterlyReportonForm10-Q,filed August1,2017

10.4QuarterlyReportonForm10-Q,filed August1,2017

10.5QuarterlyReportonForm10-Q,filed August1,2017

10.6QuarterlyReportonForm10-Q,filed August1,2017

10.1QuarterlyReportonForm10-Q,filed August1,2017

10.1QuarterlyReportonForm10-Q, filedMay3,2022

10.2QuarterlyReportonForm10-Q, filedMay3,2022

10.2QuarterlyReportonForm10-Q,filed May2,2023

10.1QuarterlyReportonForm10-Q,filed August1,2023

10.2QuarterlyReportonForm10-Q,filed August1,2023

10.1QuarterlyReportonForm10-Q,filed April30,2024

ExhibitNo.ExhibitName

31.2†CertificationofChiefFinancialOfficer pursuanttoSection302oftheSarbanesOxleyActof2002

32.1††CertificationofChiefExecutiveOfficer pursuanttoSection906oftheSarbanesOxleyActof2002

32.2††CertificationofChiefFinancialOfficer pursuanttoSection906oftheSarbanesOxleyActof2002

97PolicyforRecoveryofErroneouslyAwarded Compensation

101.INS†††InlineXBRLInstanceFiling–theinstance documentdoesnotappearintheInteractive DataFilebecauseitsXBRLtagsare embeddedwithintheInlineXBRL document

Originally Filedas ExhibitNo.Filing(1)

N/AN/A

N/AN/A

N/AN/A

972023AnnualReportonForm10-K,filed February21,2024

N/AN/A

101.SCH†††InlineXBRLExtensionSchemaFilingN/AN/A

101.CAL†††InlineXBRLExtensionCalculationLinkbase Filing N/AN/A

101.DEF†††InlineXBRLExtensionDefinitionLinkbase Filing N/AN/A

101.LAB†††InlineXBRLExtensionLabelLinkbaseFilingN/AN/A

101.PRE†††InlineXBRLExtensionPresentation LinkbaseFiling

104†††InlineXBRLforthecoverpageofthis AnnualReportonForm10-K,includedas partoftheExhibit101inlineXBRL documentset

N/AN/A

(1) Unlessotherwisenoted,theFileNumberforallfilingsisFileNo.1-7685.

*ManagementcontractorcompensatoryplanorarrangementrequiredtobefiledasanexhibittothisForm10-K pursuanttoItem15(b)ofForm10-K. †Filedherewith.

††Thiscertificationisbeingfurnishedsolelytoaccompanythisreportpursuantto18U.S.C.1350,andisnotbeing filedforpurposesofSection18oftheExchangeActandisnottobeincorporatedbyreferenceintoanyfilingof theregistrant,whethermadebeforeorafterthedatehereof,regardlessofanygeneralincorporationlanguagein suchfiling.

†††Furnishedherewith.PursuanttoRule406TofRegulationS-T,theInteractiveDataFilesonExhibit101heretoare deemednotfiledorpartofaregistrationstatementorprospectusforpurposesofSections11or12ofthe SecuritiesAct,aredeemednotfiledforpurposesofSection18oftheExchangeActandotherwisearenotsubject toliabilityunderthosesections.

Item16.FORM10-KSUMMARY

Notapplicable.

SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthas dulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

AVERYDENNISONCORPORATION

Dated:February26,2025

POWEROFATTORNEY

EachpersonwhosesignatureappearsbelowdoesherebyconstituteandappointDannyG.AlloucheandIgnacioJ. Walker,andeachofthem,withfullpowerofsubstitution,hisorhertrueandlawfulattorney-in-facttoactforhimorher inanyandallcapacities,tosignthisAnnualReportonForm10-Kandanyorallamendmentsorsupplementsthereto, andtofileeachofthesame,withallexhibitsthereto,andotherdocumentsinconnectiontherewith,withtheSecurities andExchangeCommission,grantinguntosaidattorneys-in-fact,andeachofthem,fullpowerandauthoritytodoand performeachandeveryactandthingrequisiteandnecessarytobedoneinordertoeffectuatethesameasfully,toall intentsandpurposes,asheorshecoulddoinperson,herebyratifyingandconfirmingallthatsaidattorneys-in-factor substitutes,oranyofthem,maylawfullydoorcausetobedonebyvirtuehereof.

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythe followingpersonsonbehalfoftheRegistrantandinthecapacitiesandasofthedatesindicated.

Signature

/s/DeonM.Stander DeonM.Stander

/s/DannyG.Allouche DannyG.Allouche

President,ChiefExecutiveOfficer andDirector (PrincipalExecutiveOfficer) February26,2025

SeniorVicePresident,ChiefStrategy andCorporateDevelopmentOfficer, andInterimChiefFinancialOfficer (PrincipalFinancialOfficer)

/s/DivinaF.Santiago DivinaF.Santiago VicePresident,Controller (PrincipalAccountingOfficer)

February26,2025

February26,2025

/s/MitchellR.Butier MitchellR.Butier ExecutiveChairmanFebruary26,2025

/s/BradleyA.Alford BradleyA.Alford DirectorFebruary26,2025

/s/WardH.Dickson WardH.Dickson

/s/AndresA.Lopez AndresA.Lopez

/s/MariaFernandaMejia MariaFernandaMejia

/s/FrancescaReverberi FrancescaReverberi

/s/PatrickT.Siewert PatrickT.Siewert

/s/WilliamR.Wagner WilliamR.Wagner

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2025 NOTICE AND PROXY STATEMENT

[THISPAGEINTENTIONALLYLEFTBLANK]

NOTICEOFANNUAL MEETINGOFSTOCKHOLDERS

RECORDDATE February24,2025

MEETINGDATE April24,2025

MEETINGTIME 2:30p.m.EasternTime

MEETINGFORMAT Virtualatwww.virtualshareholdermeeting.com/AVY2025

MEETINGPROPOSALS

1 Electionofthe9directorsnominatedbyourBoardtoserveforaone-yearterm

2 Approval,onanadvisorybasis,ofourexecutivecompensation

3 RatificationoftheappointmentofPwCasourindependentregisteredpublicaccountingfirmforfiscalyear2025

4 Voteonastockholderproposalforastockholderapprovalrequirementforexcessivegoldenparachutes,ifproperly presentedduringthemeeting

OurBoardrecommendsthatyouvoteFOReachofour9directornomineesinProposal1,FORProposals2and3, andAGAINSTProposal4.

StockholdersofrecordasofFebruary24,2025areentitledtonoticeof,andtovoteinconnectionwith,themeetingand anyadjournmentorpostponementthereof.Thisnoticeandourproxystatementarefirstbeingmailedormadeavailable tostockholdersonoraboutMarch7,2025.

Wewantyoursharestoberepresentedandvoted.Weencourageyoutovotepromptlyasthiswillsaveusthetimeand expenseofadditionalproxysolicitation.Asshownbelow,youcanvoteonline,bytelephone,bymailor,incertain circumstances,duringthemeeting.

OnbehalfofourBoardofDirectors,managementandteammembersworldwide,thankyouforinvestinginusandour company.WelookforwardtoengagingwithyouduringtheAnnualMeeting.

March7,2025

ONLINE BYTELEPHONE BYMAIL DURINGMEETING

Youcanvoteonlineusingthe 16-digitcontrolnumbershown onyourNoticeofInternet Availability,proxycardor votinginstructionform.

IntheU.S.andCanada,you canvotebytelephoneusing the16-digitcontrolnumber shownonyourNoticeof InternetAvailability,proxy cardorvotinginstruction form. Youcanvotebymailby completing,datingandsigning yourproxycardorvoting instructionformandreturningit intheaccompanyingpostagepaidenvelope.

Registeredholderscanvote duringthemeeting.Beneficial holdersmustcontacttheirbroker orothernomineetobeableto voteduringthemeeting.Shares heldthroughourEmployee SavingsPlanmaynotbevoted duringthemeeting.

[THISPAGEINTENTIONALLYLEFTBLANK]

TABLEOFCONTENTS

PaymentsUponTerminationasofDecember28,202482 EquityCompensationPlanInformationasofDecember28,202485

[THISPAGEINTENTIONALLYLEFTBLANK]

PROXYSUMMARY

Thisproxysummaryincludeskeyinformationrelatedtothisproxystatementbutdoesnotcontainalltheinformation youshouldconsiderbeforevoting. Westronglyencourageyoutoreadtheentireproxystatementbeforevoting.

INFORMATIONREGARDINGANNUALMEETING

DistributionofProxyMaterials

WewillbeginmailingourNoticeofInternetAvailabilityofProxyMaterials,whichincludesinstructionsonhowto accessthesematerialsonlineandvoteyourshares,onoraboutMarch7,2025.Ifyoupreviouslyelectedtoreceivea papercopyofourproxymaterials,onoraboutthesamedate,wewillmailyouour2024integratedfinancialand sustainabilityreport(our“2024IntegratedReport”),whichincludesalettertostockholdersfromourPresident&Chief ExecutiveOfficer(CEO),descriptionsofourcompany,stakeholders,valuesandstrategies,andfinancialandsustainability highlights;ourAnnualReportonForm10-KforthefiscalyearendedDecember28,2024(our“2024AnnualReport”); thenoticeandproxystatementforour2025AnnualMeetingofStockholders(the“AnnualMeeting”);andaproxycard.

Time,DateandFormatofAnnualMeeting

TheAnnualMeetingwilltakeplaceat2:30p.m.EasternTimeonApril24,2025.Toallowstockholderstoattend withoutthetimeandexpenseofdoingsoinperson,themeetingwillbeheldvirtually,withattendanceviathe internet. ToattendthevirtualAnnualMeeting,youwillneedtologinatwww.virtualshareholdermeeting.com/AVY2025 usingthe16-digitcontrolnumberonyourNoticeofInternetAvailabilityofProxyMaterials,proxycardorvoting instructionform.

OnlineaccesstotheliveaudiowebcastoftheAnnualMeetingwillopenat2:15p.m.EasternTimetoallowtimefor youtologinandtestyourdevice’saudiosystem.Weencourageyoutoaccessthemeetinginadvanceofitsstarttimeas wewillbeginpromptly.ForadditionalinstructionsonhowtoattendthevirtualAnnualMeeting,pleaserefertothe Voting andMeetingQ&A sectionofthisproxystatement.

ProposalsforAnnualMeeting

Youarebeingaskedtovoteontheproposalsshownbelow. OurBoardofDirectors(our“Board”)recommendsthat youvoteFOReachofour9directornomineesinProposal1,FORProposals2and3,andAGAINSTProposal4.

YoumayvoteyoursharesbysubmittingaproxyinadvanceoftheAnnualMeetingonline,bytelephoneorbymail; onlyincertaincircumstancesmayyouvoteduringthemeeting.Ifyouarearegisteredstockholderwhohasnotpreviously votedorwantstochangeyourvote,youmayvoteduringtheAnnualMeeting.Beneficialholdersmayonlyvoteduringthe meetingiftheyproperlyrequestandreceivealegalproxyintheirnamefromthebroker,bankorothernomineethatholds theirshares.SharesheldthroughourEmployeeSavingsPlanmaynotbevotedduringthemeeting.Whetherornotyou plantoattendthevirtualAnnualMeeting, weurgeyoutovoteandsubmityourproxypromptlybyfollowingthe instructionsonyourNoticeofInternetAvailabilityofProxyMaterials,proxycardorvotinginstructionform.

AskingQuestionsDuringAnnualMeeting

WehavedesignedthevirtualAnnualMeetingtoensurethatyouhavethesamerightsandopportunitiesto participateasyouwouldatanin-personmeeting,usinganonlineplatformthatallowsyoutoattend,voteandask questions.Afterwehavefinishedvotingupontheproposalsandthemeetingisadjourned,ourChairmanwillleadaQ&A sessionduringwhichweintendtoanswerallquestionssubmittedtimelythatarepertinenttoourcompanyorthe proposalsbroughtbeforestockholdervote.Answerstoquestionsnotaddressedduringthemeeting,ifany,willbeposted promptlyafterthemeetingontheinvestorssectionofourwebsite.Forinformationonhowtosubmitquestionsduring theAnnualMeeting,pleaserefertothe VotingandMeetingQ&A sectionofthisproxystatement.

OURCOMPANY

Weareaglobalmaterialsscienceanddigitalidentificationsolutionscompany.WeareMakingPossibleTM productsandsolutionsthathelpadvancetheindustriesweserve,providingbrandingandinformationsolutionsthat optimizelaborandsupplychainefficiency,reducewaste,advancesustainability,circularityandtransparency,and betterconnectbrandsandconsumers. Wedesignanddeveloplabelingandfunctionalmaterials,radio-frequency identification(RFID)inlaysandtags,softwareapplicationsthatconnectthephysicalanddigital,andofferingsthat enhancebrandedpackagingandcarryordisplayinformationthatimprovesthecustomerexperience.Weserveanarray ofindustriesworldwide,includinghomeandpersonalcare,apparel,generalretail,e-commerce,logistics,foodand grocery,pharmaceuticalsandautomotive.

Ourcompanyiscomposedoftworeportablesegments,MaterialsGroupandSolutionsGroup. MaterialsGroupisa leadingglobalprovidertothepressure-sensitivelabelandgraphicsindustries.Ourinnovativeproductsincludelabel materials,graphicsandreflectivematerials,andfunctionalbondingmaterials,liketapes.Ourlabelmaterialsenhance brands’shelfappeal,informshoppers,advancecircularity,increasetransparency,helpreducewasteandimprove operationalsupplychainefficiency. Ourgraphicsportfoliooffershighlyengineeredproductsrangingfromvehiclewraps toarchitecturalfilms.Ourtapesportfolioincludesbondingandfunctionalmaterialsforapplicationsinvariousindustry sectorssuchasautomotive,buildingandconstruction, andelectronics.Weleveragethegroup’smaterialsscience capabilitiesandprocessengineeringexpertisetodevelopandmanufactureIntelligentLabelsatscaleanddrivetheir furtheradoptionthroughourconverterchannelaccess.

SolutionsGroupisaleadingproviderofinformationandbrandingsolutionsthatcoverworldwidemarketplace needsrangingfromdigitalidentificationanddatamanagementtobrandingandembellishment,productivity,pricing andretailmedia. Asalargeultra-high-frequencyRFIDsolutionsprovider,weempowercustomersacrossmultipleretail andindustrysegments,includingapparel,logistics,foodandgroceryandgeneralretail,toconnectthephysicalanddigital worldsbyenablingadigitalidentityandlifeonphysicalitems.Ourinnovationanddatamanagementcapabilities,global footprintandmarketaccesscontinuouslyexpandoursolutionsplatform.

BUSINESSFUNDAMENTALSANDSTRATEGYOVERVIEW

Wearecommittedtothesuccessofallourstakeholders–ourcustomers,investors,employeesandcommunities–for whomthefundamentalsofourbusiness,competitiveadvantages,financialperformanceandsustainabilityprogresshave deliveredstronglong-termvalue. OurvisionistoleveragethestrengthsofourMaterialsandSolutionsbusinessesto leadattheintersectionofthephysicalanddigital,andweareuniquelypositionedtohelptheindustriesweserve addresssomeofthemostcomplexindustrychallenges.

Wehavedemonstratedovertimeandcyclesthatwecanconsistentlydrivestrongperformance,reflectingour businesscharacteristicsdescribedbelow.

•Weareexposedtodiverseandgrowingmarkets,largelyanchoredinconsumerstaples.

•Weareindustryleadersinourprimarybusinesses,withsignificantcompetitiveadvantagesinscaleand innovation.

•Wehaveastrongfoundationinourbasebusinesses,deliveringgrossdomesticproduct(GDP)growthand strongcashflow.

•Wehavecatalystsforlong-termgrowthinemergingmarkets,aswellasinhigh-valuecategoriesthatare increasinglyalargerpartofourportfolio,providecompetitivedifferentiationandenablehighermargins.

•Wehaveastronginnovationandproductivitycultureandanengagedglobalteamthatdemonstratesagilityto adjustourprioritiestowininthemarketplace.

•Wehaveastrongbalancesheetanddisciplinedapproachtocapitalallocationthatprovidesinvestmentflexibility todrivefurtherearningsgrowth.

2 2025ProxyStatement | AveryDennisonCorporation

Overadecadeago,weembarkedonatransformationstrategyfocusedonstrengtheningourfoundation,improving profitablyandbolsteringourportfolioandbalancesheet.Wethenbegantakingamuchmoresegmentedapproachtoour strategy,advancinggrowthandimprovingmarginsinourbasebusinessesandsignificantlyincreasingourfocuson higher-valueproductsandsolutionstofurtheraccelerateourgrowth,expandmarginsandincreasedifferentiation.We focusedinitiallyonincreasingorganicgrowth,untilwedemonstratedtheabilitytoidentifyandexecutestrategic acquisitionstoaccelerateourstrategiesandenterattractiveadjacencies.Inrecentyears,wehavebegunbuildingournext chapter,leveragingourMaterialsandSolutionsbusinessestoconnectthephysicalanddigital.

Throughoutthisjourneywehavereliedonourheritageofexcellentexecution,continuousimprovementand productivity,whichenablesustodeliverstrongresultsinvariousscenariosanddeploycapitalinadisciplinedmanner. Wehaveinvestedorganicallyinourbusinesses,consistentlygrownourdividend,acquiredattractivecompaniesat goodvalue,andearnedahighreturnonoursharerepurchases.

Wearenowfocusedonaddressingandleveragingkeymegatrendsofdigitization,sustainabilityandpersonalization, whichcreatesignificantopportunityforvaluecreationgivenourportfoliomixandcompetitiveadvantages. Weprioritize usingourmarketinsights,drivinglong-terminnovationandenhancingthedigitalcapabilityofourteamstodeliver solutionsthatbringvaluetoourcustomers,whilecontinuingtoexecutewellinthecorebusinessesthathavebeen keytooursuccess.

Ourfivestrategicpillars,whichenableustodeliveracrosscyclesandexpandouropportunityforfuturegrowth,and 2024achievementsareshownbelow. Webelievethatourstrategies,togetherwithourteam’sabilitytoexecutein variousenvironments,willcontinuetodeliverlong-termvaluethroughabalanceofGDP+growthandtop-quartile returns.

STRATEGICPILLARS2024ACHIEVEMENTS

Driveoutsizedgrowthinhigh-valuecategories Weaimtoincrease,bothorganicallyandthrough acquisitions,theproportionofourportfolioinhigh-value categoriesthatservemarketsthataregrowingfaster thanGDP,representlargepoolsofpotentialprofit, leverageourcorecapabilities,andincreaseour competitivedifferentiation.High-valueproductsand solutionsincludeourspecialtyanddurablelabel materials,graphicsandreflectivesolutions,andindustrial tapes;IntelligentLabelsthatuseRFIDtagsandinlays; shelf-edgepricing,productivityandconsumer engagementsolutions;andexternalembellishments.

In2024,high-valuecategoriesdeliveredabove-average growthinMaterials,higher-than-averagemarginsin Solutionsandhighsingle-digitgrowthinenterprise-wide IntelligentLabelssales. High-valueproductsand solutionsnowrepresentnearlyhalfofourportfolio, havingdisproportionatelydrivenourorganicgrowthin recentyears.

Growprofitablyinourbasebusinesses

Weseektogrowprofitablyinourbasebusinessesby balancingvolume,priceandmix,reducingcomplexityand tailoringourgo-to-marketstrategies.

Wedeliveredstrongmarginexpansioninboth MaterialsandSolutions drivenbyvolumegrowthasour industriesnormalizedfromdownstreaminventory destockingin2023,aswellasourmaterialreengineering andproductivityactions.

Leadattheintersectionofthephysicalanddigital

WeleveragethecorecapabilitiesofourMaterialsand Solutionsbusinessestoconnectthephysicalanddigital tohelpourcustomersoptimizelaborefficiencyand supplychaineffectiveness,reducewaste,advance circularityandtransparency,andbetterconnecttheir brandswithconsumers.

Weprovidelabelingmaterialsthatbothdecorateand provideinformation,andweareindustryleadersinultrahigh-frequencyRFID. Ourbusinessfundamentals, innovationleadershipandgo-to-marketstrategy uniquelypositionustoleadinconnectingphysical itemswithdigitalidentities. Wecontinuetoinvestto capturethesignificantopportunityaheadaswegrowin bothSolutionsandMaterials.

Effectivelyallocatecapitalandrelentlesslyfocusonproductivity

Wemaintainastrongbalancesheetwithamplecapacity toinvest.Webalanceourcapitalinvestmentinorganic growth,productivity,andacquisitionsandventure investmentswithcontinuingtoreturncashto stockholdersthroughagrowingdividendand strategicallyexecutedsharerepurchases.Inaddition,we takeactionstorestructureouroperationsanduse materialreengineering,leanoperatingprinciplesand fixed-costinnovationtoexpandourmargins,enhanceour competitivenessandprovideafundingsourcefor reinvestment.

Weinvested$239.8millioninfixedandinformation technologycapitalexpenditurestosupportorganic growth;paid$277.5millionindividendswitha9% increaseinourquarterlydividendrate;and repurchased$247.5millioninsharesofourcommon stock. Wealsodelivered~$63millioninpre-tax savingsfromrestructuringactions,netoftransition costs.

Leadinanenvironmentallyandsociallyresponsiblemanner

Westrivetoadvancetheenvironmentalsustainabilityof ourcompanyandvaluechainbydeliveringinnovations thatadvancethecirculareconomy,reducingthe environmentalimpactofouroperations,andoffering moresustainablevalue-creationopportunitiesforour customers.Wealsoseektomakeapositivesocialimpact bybuildinganengagedandempoweredworkforce, enhancingourworkplaceculture,maintainingoperations thatpromotehealthandsafety,andsupportingour communities.

Wehavelargelyachievedour2025sustainability goalsandbegunimplementingplanstoachieveour moreambitious2030sustainabilitygoals,reducing theenvironmentalimpactofouroperations;continuing toadvanceourstrategicinnovationprioritiesfocused onmaterialscircularity,wastereduction/eliminationand plasticpackagingrecyclability;drivingcontinuous improvementinouremployeeengagementand experience;andcontributing$4.9milliontosupportour communities,primarilythroughtheAveryDennison Foundation(ADF).

Withthesestrategiesinmind,ournear-termprioritiesareto:

•Accelerategrowthinhigh-valueproductcategories,includingbydrivingmoresolutionproofpointsaround connectingphysicalitemswithdigitalidentities

•Driveprofitablegrowthinourbasebusinesses

•Continuetooptimizeourcoststructuretomaintainourcompetitiveadvantageandaccelerateinnovationto drivegrowthandcostleadership

•Furtherenhancecollaborationwithinourcompanyandwiththewiderecosystemincriticalgrowthareasand innovation

•Deploycapitalstrategicallytostrengthenourportfolioandgeneratestrongreturns

PERFORMANCEHIGHLIGHTS

2024Performance

Althoughalowerdemandenvironmentdrivenprimarilybysignificantinventorydestockingdownstreamfromour companyledtoachallenging2023,wesignificantlyprogressedtowarddeliveringonourstrategicandfinancialgoalsin 2024. OurMaterialsandSolutionsbusinessesbothachievedstrongtop-andbottom-lineresults,withourbase businessesrecoveringfromtheimpactofprior-yeardestocking,stronggrowthinhigh-valuecategoriesand significantproductivity-drivenmarginexpansion. Keyfinancialresultsfortheyearareshownbelow.

Netsalesof$8.8billion increased4.7%from $8.4billionin2023drivenbystrongvolume growth,partiallyoffsetbydeflation-relatedprice reductions

Excludingtheimpactofcurrency,salesincreasedby 5.1%

Reportedearningspershare(EPS)increasedfrom $6.20in2023to$8.73

AdjustedEPSincreased19.4%from$7.90to $9.43,atthehighendofouroriginalguidancefor theyear,reflectingvolumerecoveryinourbase labelandapparelbusinesses,stronggrowthin high-valuecategories,andimprovedproductivity

With netcashprovidedbyoperatingactivitiesof $938.8million,increasedadjustedfreecashflowby 18.2%fromprioryearto$699.5million;adjusted freecashflowconversionwasnearly100%

Saleschangeexcludingtheimpactofcurrency(saleschangeex.currency),adjustedEPS,adjustedfreecashflow, adjustedfreecashflowconversion,andROTC–aswellasorganicsaleschange,adjustedearningsbeforeinterest,taxes, depreciationandamortization(EBITDA),andadjustedEBITDAmargin,whichareusedlaterinthisproxystatement–are supplementalnon-GAAPfinancialmeasuresthatweuseinternallyandprovidetoassistinvestorsinassessingour performance,operatingtrendsandliquidity.Thesemeasuresaredefined,qualifiedandreconciledfromgenerally acceptedaccountingprinciplesintheUnitedStatesofAmerica(GAAP)inAppendixAofthisproxystatement.

ProgressTowardLong-TermFinancialTargets

InMarch2021,weannouncedfinancialtargetsthrough2025,makingsignificantprogresstowardtheirachievement in2024. Ourperformanceduringthefirstfouryearsofthisperiodreflectsthestrengthanddurabilityofourportfolio, theresilienceofourmarketpositions,ouragileandtalentedglobalteam,andtheconsistentexecutionofour strategies,whichtogetherenableustodeliverstrongresultsandcompoundearningsinvariousscenariosacross cycles.

In2021-2024,onafour-yearcompoundannualbasis(with2020asthebaseperiod),GAAPreportednetsales, operatingincome,netincomeandEPSincreasedby5.9%,6.6%,6.1%and7.2%,respectively.GAAPreportedoperating marginin2024was11.9%.Ournon-GAAPtargetsandresultsareshownbelow.

2021-2025TARGETS2021-2024RESULTS

SalesChangeEx.Currency(1)(2) 5%+7.0%

AdjustedEBITDAGrowth(1)(2)(3) 6.5%7.6%

AdjustedEBITDAMargin(1) 16%+in202516.4%in2024

AdjustedEPSGrowth(1)(2) 10%7.4%

ROTC(1) 18%+15.8%in2024

(1) Resultsfornon-GAAPmeasuresarereconciledfromGAAPinAppendixAofthisproxystatement.

(2) Percentagesfortargetsandresultsreflectfive-andfour-yearcompoundannualgrowthrates,respectively, with2020asthebaseperiod.

(3) AlthoughadjustedEBITDAgrowthwasnotoneofouroriginaltargets,itwasimpliedbythesaleschange ex.currencyandadjustedEBITDAmargintargets.TheforeigncurrencytranslationimpacttoEBITDAwas abenefitofapproximately$38millionin2021andaheadwindofapproximately$81million,$20million and$7millionin2022,2023and2024,respectively.

Ourfinancialtargetsthrough2028focusoncontinuingtodeliverstrongvaluecreationusingthelong-termfinancial frameworkweannouncedinSeptember2024,whichreflectsouroverridingobjectivetodeliverGDP+growth,margin expansionandtop-quartilereturnsoncapital.

2024-2028TARGETS

SalesChangeEx.Currency(1) 5%+

AdjustedEBITDAMargin17%+in2028

AdjustedEPSGrowth(1) 10% ROTCTopQuartile(2)

(1) Percentagesreflectfive-yearcompoundannualgrowthrates,with2023asthebaseperiod.

(2) Relativetopeergroupfor2024-2026PUslistedonpage71ofthisproxystatement.

EffectiveCapitalAllocation

Weinvestinourbusinessestosupportorganicgrowthandseektoacquirecompaniesthatcanaccelerateour strategies,particularlyinhigh-valueproductcategories,increaseourpaceofinnovationandadvanceour sustainabilitypriorities. Ourfixedandinformationtechnologycapitalspendingin2024of$239.8millionwas16%lower thanin2023,reflectingcontinuedinvestmentinourbusinesseswithconsiderationtothemoreuncertainmacroeconomic andgeopoliticalenvironmentandourothercapitalallocationpriorities.Duringtheyear,wealsomadeventure investmentsinthreecompaniesdevelopingtechnologicalsolutionsthatwebelievehavethepotentialtoadvanceour strategies.

In2024,wepaid$277.5millionindividendsof$3.45pershareandrepurchased1.2millionsharesofourcommon stock,havingstrategicallyacceleratedrepurchasesinthefourthquarter. Weraisedourquarterlydividendrateby9%in April2024.

Asshownbelow, overthelastfiveyears,wehavedeployedmorethan$2billiontoacquisitions(includingventure investments)andreturnedmorethan$2billiontostockholdersindividendsandsharerepurchases

TotalStockholderReturn(TSR)Performance

OurTSRin2024waslowerthantheTSRoftheDowJonesU.S.Container&PackagingIndex,theS&P500 IndustrialsIndexandtheS&P500Index,threeindicesweusetodiscloseourrelativeperformance.Webelievethatour five-yearTSRisamoremeaningfulmeasurethanourone-yearTSR,consistentwiththetimehorizonofourfinancial targetsandgoaltodeliverlong-termvalueforourinvestors.Whilelowerthantwooftheseindices,ourfive-yearTSR outperformedtheDowJonesU.S.Container&PackagingIndex,asshownbelow.

5-YEARCUMULATIVETSR

1-,3-AND5-YEARTSR

2025DIRECTORNOMINEES(PROPOSAL1)

MatrixofDirectorSkills,QualificationsandDemographics

Ourdirectorsbringabalanceofskills,qualificationsanddemographicstotheirrolesinprovidingoversightofour company,asshownbyindividualinthematrixbelow. Thisyear,weincludeddefinitionsfortheareasoffunctional experiencereflectedinthematrixandmodestlyrevisedcertainlevelsoffunctionalexperiencefromprioryearto reflectadditionalinformationwesolicitedinour2024directorquestionnaire.FormerdirectorsKenHicksandMartha SullivandepartedfromourBoardinNovemberandDecember2024,respectively,tofocusonotherprofessional commitmentsandendeavors.

Aspartofitsongoingdirectorsuccessionplanningprocess,theGovernanceCommitteeregularlydiscussesand reportstoourBoardonthecompositiondesirableforourBoardtobestservetheneedsofourcompany.Aspartof thisprocess,theGovernanceCommitteeinitiatedasearchin2023fornewdirectorswithretail/consumerpackaged goodsorfinanceexpertise,whichledtotheappointmentsofMariaFernandaMejiaandWardDicksontoourBoard inFebruaryandJune2024,respectively.

Asian(includingSouthAsian)

NativeHawaiianorPacificIslander

NativeAmericanorAlaskaNative

Works/WorkedOutsideU.S.

(1) DeterminedbyourBoardasindependentunderNYSElistingstandards.

(2) ServiceasU.S.publiccompanyCEO,ChiefOperatingOfficer(COO)and/orChiefFinancialOfficer(CFO).

(3) PriororconcurrentserviceonanotherU.S.publiccompanyboard,excludingcompaniesatwhichindividualservedorservesasCEO,COOand/orCFO.

(4) Keyforlevelsofindustryandfunctionalexperience:

Š Technicalexpertise–Directmanagementexperienceorsubjectmatterexpertiseduringprofessionalcareer.

Š Supervisoryexperience–Supervisorymanagementexperienceduringprofessionalcareer.

Š Substantialknowledge–KnowledgefromservingonboardofanotherU.S.publiccompanyand/orgainedfrominvestmentbankingorprivateequityexperience.

(5) Definitionsforareasoffunctionalexperience:

-Finance–Experienceinaccounting,financeandcapitalmanagement,includingoversightoffinancialreporting,financialstatementsandinternalcontrols.

-Marketing–Experienceinmarketingandmanagingbrands,particularlyinretailandconsumerpackagedgoodsindustries.

-M&A–Experienceinidentifying,evaluating,executingandintegratingacquisitions,ventureinvestmentsandotherstrategicopportunities.

-EnvironmentalSustainability–Experienceinidentifyingandimplementingenvironmentalpracticesandinitiativesorinconductingclimate-relatedstrategic planning,riskmanagementandmitigation.

-Cybersecurity–Experienceininformationsecurity,cybersecurity,ordataprivacyriskmanagementandmitigation.

-Science/Engineering/R&D–Experienceinmaterialsscience,engineeringortheresearchanddevelopmentofinnovativeproductsandsolutions.

(6) Classificationsforallcategoriesotherthantenurebasedonvoluntaryself-reportedresponsestodirectorquestionnaires.

BoardLeadershipTransition

FollowingasuccessfulCEOtransitionandconsistentwiththerangeofanticipatedtimingfortheExecutive Chairmanrole,MitchButierwillceaseservingasanexecutiveofficerofourcompanyaftertheAnnualMeeting. In February2025,notingthatheremainedbestpositionedtoleadourBoardinoverseeingmanagement’sexecutionofour strategies–andgivingconsiderationtohissuccessasExecutiveChairmansinceSeptember2023andthevaluable mentorshiphehasprovidedtoDeonStanderinhisfirst18monthsasCEO–upontherecommendationofthe GovernanceCommittee,ourBoardelectedMr.Butier(withhimnotpresentforthediscussionorvote)toserveas Chairmanforaone-yeartermendingatthe2026AnnualMeeting,subjecttohisreelection.

Givingconsiderationtotheexpertadviceofitsindependentcompensationconsultant,WTW,ourBoard’sTalentand CompensationCommittee(the“CompensationCommittee”)recommendedtoourBoardthatMr.Butier’sgo-forward compensationstructurealignwiththatofnon-employeedirectors,withhistargettotaldirectcompensationsetat $500,000(or$510,000withthecharitablematch),reflectingthe75th percentileofnon-executivechairrolesamong Fortune350-500companies.InFebruary2025,ourBoardapprovedthefollowinggo-forwardannualcompensationfor Mr.Butier:(i)acashBoardretainerof$200,000,modestlyhigherthanthecurrentretainersof$115,000fornonemployeedirectorsand$160,000forourLeadIndependentDirector,and(ii)anequityawardofrestrictedstockunits (RSUs)withagrantdatefairvalueof$300,000,modestlyhigherthanthecurrentawardof$185,000fornon-employee directors,thatsimilarlyvestsontheone-yearanniversaryofthegrantdate.

BoardPerformanceHighlights

OurBoardprovidesstrongoversightofourmanagementteamandcompany;highlightsofitskeyaccomplishmentsin recentyearsaredescribedbelow.

•SupportedmanagementinnavigatingourresponsetotheCOVID-19pandemic,includingrelatedlabor,freight andinflationarychallenges,in2020and2021;pandemic-relatedchallengesinChina,theRussia-Ukrainewar, supplychaindisruptions,sizablecurrencymovementsandinflationarypressuresin2022;theIsrael-Hamaswar andlowerdemanddrivenprimarilybydownstreaminventorydestockingin2023;andstrongvolumegrowthand marginexpansionin2024withindustryvolumeshavingnormalized

•Oversawmanagement’sconsistentexecutionofourstrategies,supportingoureffortstoadvancekeypriority areasoffoodanddigital,aswellasprogressingustowardachievingour2025financialtargetsanddelivering 2020-2024TSRof55%,outperformingtheDowJonesU.S.Container&PackagingIndex

•Supportedmanagementinevaluatingsynergisticacquisitiontargets,resultinginseveralcompaniesbecoming partofourportfolio,addingnewcapabilities,expandingourpositioninhigh-valueproductcategoriesand enhancingouropportunitiesinthemarketplace

•ImplementedthoughtfulBoardrefreshmentanddirectorsuccessionplanningtomitigatetheimpactofdirector departuresandensurewehaveabalanced,high-caliberBoardwithrespecttoindustryexperience,functional experienceanddemographics,leadingtotheappointmentofthreenewindependentdirectorsinthelast24 months

•Conductedregularexecutivesuccessionplanning,resultinginexperiencedleaderspromotedtoseniorpositions, includingourCEOandSolutionsPresidentin2023andourInterimCFOandMaterialsPresidentin2024

•Sharpenedfocusonadvancingsustainability,largelydeliveringour2025goalsandlayingthefoundationtoward achievingourmoreambitious2030goals,aswellasincreasingtransparencyinoursustainabilityreporting

GovernanceHighlights

Highlightsofourgovernanceprogramareshownbelow.

✓ Market-standardproxyaccess

✓ Righttocallspecialmeetingsofstockholdersat25%ownershipthreshold

StockholderRights

✓ Nosupermajorityvotingrequirements

✓ Nopoisonpill

✓ Noexclusiveforumorfee-shiftingbylaws

✓ Annualelectionofdirectors

✓ Majorityvotingindirectorelections

✓ Singleclassofoutstandingvotingstock

✓ Directornominees78%independent

✓ RobustLeadIndependentDirectorrole

BoardGovernance

✓ RegulardirectorsuccessionplanningandpacedBoardrefreshment,withthreenewdirectors appointedandfourlonger-tenureddirectorsdepartingwithinlasttwoyears

✓ Regularexecutivesuccessionplanningandleadershipdevelopment

✓ AnnualBoard/Committeeevaluationsandbiannualindividualdirectorfeedbackprocess

✓ Mandatorydirectorretirementpolicyatage72withnoexemptionsorwaiversallowedorgranted

✓ BestpracticeGovernanceGuidelines

✓ StrongBoardandCommitteegovernance

✓ Directaccesstomanagementandexperts

SUSTAINABILITY

Sustainabilityisoneofourvaluesandhaslongbeenintegraltoourwayofdoingbusiness. Webelievethatour sustainabilityfocusisabusinessimperativethatprovidessignificantgrowthandproductivityopportunitiesforour company. Tocreatevalueforourstakeholders,westrivetoadvancetheenvironmentalsustainabilityofourcompanyand valuechainbydeliveringinnovationsthatadvancethecirculareconomy,reducingtheenvironmentalimpactofour operations,andofferingmoresustainablevalue-creationsolutionsforourcustomers.Wealsoseektomakeapositive socialimpactbybuildinganengagedandempoweredworkforce,enhancingourworkplaceculture,maintaining operationsthatpromotehealthandsafety,andsupportingourcommunities.

Wehavebeenadvancingsustainabilitybyestablishingourpriorities,settingambitiousgoalsandmakingprogress overtimetowardtheirachievement.Ourprogressreflectstheintegrationofsustainabilityintoourbusinessstrategies, leadershipofourmanagementteam,andengagementandoversightofourBoard,aswellasthedriveandpassionofour teammembersworldwide.

SustainabilityDataandReporting

Wecontinuetorefineandexpandthesustainabilitydatawedisclose,whichhasprovidedourstakeholderswith regularinsightintoourprogress. OursustainabilitydataisindexedtotheSustainabilityAccountingStandardsBoard (SASB)framework,notingwherethosedisclosuresalignwiththeGlobalReportingInitiative(GRI)framework,to facilitatecomparabilitywithothercompanies. Wepartneredwithathird-partyexperttoassessourdisclosuresagainst therecommendationsoftheFinancialStabilityBoard’sTaskForceonClimate-relatedFinancialDisclosures(TCFD) regardingtheinformationthatcompaniesshoulddisclosetoallowtheirstakeholderstoassessandpricetheirclimaterelatedrisksandarealigningourreportingwithTCFDrequirements. WeannuallyrespondtoCarbonDisclosureProject (CDP)Climate,WaterSecurityandForestsandsupportthegrowingadoptionofInternationalSustainability StandardsBoard(ISSB)standards. Wemonitorcurrentandfuturereportingrequirementsandtrends,includingthe increasingadoptionofinternationalstandardssuchasISSBandtheimplementationofregulationssuchastheEuropean CorporateSustainabilityReportingDirective(CSRD),whichwillimposeadditionaldisclosurerequirementsforour company.

Oursustainabilityteamsassessourreportinginaccordancewithexternalframeworks;engagewithenvironmental, socialandgovernanceratingagencies;manageourdatacollectionandreportingprocesses;establishandmonitor assuranceguidanceandcontrols;andapprovereports,dataandinformation.Inaddition,weengagean independent thirdpartytovalidateourenergyandgreenhousegas(GHG)emissionsdata. HavingalignedwiththeAudit CommitteetoensureBoardalignmentwithoursustainabilitygovernance,ourreportingprocessesensure dataowner sign-off,sustainabilitydisclosurecommitteereviewandseniormanagementapproval priortopublication.

Afterevaluatingourcompanyintheareasofenvironment,laborandhumanrights,ethicsandsustainable procurement,EcoVadis,asustainabilityratingscompanythatassessesenvironmental,socialandgovernance performance, awardedourcompanyitshighest“platinum”rating foroursustainabilityperformancein2024.This designationplacesusinthe top1%ofcompaniesacross185countriesforsustainabilitypractices, reflectingour strategyofleadinginanenvironmentallyandsociallyresponsiblemanner.

OurMarch2025ESGDownload(ESGDownload),whichisbeingmadeavailableonourwebsiteat esg.averydennison.comonorbeforethefilingofthisproxystatement,reflectsourfocusandprogressonsustainability andgovernancematters.Itdiscloses~140metricscoveringourpolicies,goals,strategies,risks,outcomesand certifications.Informationonourwebsiteisnotandshouldnotbeconsideredpartof,norisitincorporatedbyreference into,thisproxystatement.

ProgressTowardSustainabilityGoals

Withlessthanayearremainingintheir10-yearhorizon,wehavelargelyachievedour2025sustainabilitygoals, includingexceedingourgoalforcumulativeGHGemissionsreduction,asshowninthescorecardbelow.Youcanfind additionalinformationonoursustainabilityprogressinour2024IntegratedReportbeingfurnishedtotheSecuritiesand ExchangeCommission(SEC)priortothedistributionofourproxymaterials,aswellasinourESGDownload,eachof whichincludesvoluntarydisclosuresprovidedtoaddressstakeholderintereststhatarenotmaterial,individuallyorinthe aggregate.

2024SCORECARDOFPROGRESSTOWARD2025SUSTAINABILITYGOALS Goal(s)BaselineYearHighlightsofProgress

Greenhouse GasEmissions

Achieveatleast3%absolutereductionyear-over-yearand atleast26%cumulativereductionby2025 2015

AlthoughGHGemissionsincreasedby~2%in2024,they werereducedby~54%cumulativelyfrombaselineyear(1)

Paper

Source100%certifiedpaper,ofwhichatleast70%is ForestStewardshipCouncil®-certified 2015

Films

Chemicals

Productsand Solutions

70%offilmswebuyconformto,orenableendproductsto conformto,ourenvironmentalandsocialguidingprinciples

70%ofchemicalswebuyconformto,orenableend productstoconformto,ourenvironmentalandsocial guidingprinciples

Derive70%ofrevenuesfromsustainability-drivenproducts (asdefinedbyourSustainableADvantagecriteria)

Waste

Be95%landfill-free,withatleast75%ofourwastereused, repurposedorrecycled

People Continuetocultivatediverse(40%+femaleatlevelof managerandabove),engaged,safe(recordableincident rate(RIR)of<0.25),productiveandhealthyworkforce

Maintainworld-classsafetyandemployeeengagement scores

Transparency

Committogoalspubliclyandbetransparentinreporting progress

Oftotalvolumeofpaperprocuredin2024,~97%was certified,with~80%offacepaperForestStewardship Council®-certified

~97%of2024filmvolumeconformedtoMaterialsGroup’s RestrictedSubstanceList(RSL)

~97%of2024chemicalvolumeconformedtoMaterials Group’sRSL

~69%ofMaterialsGroup(basedonlyonLabelandGraphic Materials)and~66%ofSolutionsGroup(basedonlyon ApparelSolutions)salesin2024camefromsustainabilitydrivenproductsthatareresponsiblysourced,enable recyclability,containrecycledcontentoruselessmaterial

Diverted~94%ofsolidwastefromlandfillsandrecycled ~68%ofwastein2024(1)

Femalerepresentationatlevelofmanagerandabove increasedby~5%frombaselineyearto~37%atYE2024(2) Continuedworld-classsafetyrecord,withRIRof0.21in 2024,substantiallybetterthanmanufacturingindustry averageof2.8in2023(mostrecentlyavailabledata) Employeeengagementscoreof~85%in2024

Continuedenhancingsustainabilitytransparencywithmore comprehensivereportinginourIntegratedReports,proxy statements,ESGDownloadsandCDPresponses

(1) Basedonpreliminary,unauditedfull-yeardata.Inprioryears,disclosedauditeddatathroughthirdquarter.

(2) Ourgoalistofosteraworkforcerepresentativeofthecommunitiesinwhichweoperate;asoneindicator,wetrackthepercentageoffemalesinmanager levelandabovepositionsglobally.

Aftercompletingourbiannualmaterialityassessmentin2020toprioritizethemostsignificantenvironmentaland socialsustainabilitychallengesthenfacingourcompanyandstakeholders,weestablishedour2030sustainabilitygoals withinwhichwehavespecifictargets.Ourprogresstowardthesegoalsthrough2024isshownbelow.

2024SCORECARDOFPROGRESSTOWARD2030SUSTAINABILITYGOALS

GoalTargetsBaselineYearHighlightsofProgress

Satisfytherecycling,compostingorreuserequirements ofallsingle-useconsumerpackagingandapparelwith ourproductsandsolutions

SolutionsGroup:100%ofourcoreproduct categories(printedfabriclabels,wovenlabels,paper, interiorheat-transferlabels,packagingandRFID) willmeetourSustainableADvantagestandard

Deliver innovationsthat advancethe circulareconomy

Reducethe environmental impactinour operationsand supplychain

MaterialsGroup:100%ofourstandardlabel productswillcontainrecycledorrenewablecontent; allofourregionswillhavelabelsthatenable circularityofplastics

ReduceourScope1and2GHGemissionsby70%from our2015baseline.

Workwithoursupplychaintoreduceour2018baseline Scope3GHGemissionsby30%,withanambitionofnet zeroby2050

Source100%ofpaperfiberfromcertifiedsources focusedonadeforestation-freefuture

Divert95%ofourwasteawayfromlandfills,witha minimumof80%ofourwasterecycledandthe remaindereitherreused,compostedorsenttoenergy recovery

Delivera15%increaseinwaterefficiencyatoursites thatarelocatedinhigh-orextremelyhigh-riskcountries asidentifiedintheWorldResourcesInstituteAqueduct Tool

Fosteranengagedteamandaninclusiveworkplace

•InclusionIndex:85%

•EmployeeEngagement:82%

•Femalesinmanagerlevelorabovepositions:40%

•Safety:RIRof0.20

Makea positivesocial impactby enhancingthe livelihoodof ourpeopleand communities

N/A~78%(basedonlyonApparelSolutions)in2024

N/A

~67%(basedonlyonLabelandGraphicMaterials)in 2024

Scope1and2:~54%in2024(1)

Scope3:Prior-yearcalculationspubliclyavailableinour mostrecentCDPClimateresponse

2015~97%certifiedin2024

2015

~91%landfill-freein2024(1)(2) ~68%recycledin2024(1)(2)

N/A~(17)%water/employeein2024(1)(3)

2015

SupporttheparticipationofouremployeesinADFgrants andfosterthewell-beingofthecommunitiesinwhichwe andoursupplychainoperate

•85%ofcountriesinwhichweoperatereceiveADF grants

•50%ofallADFgrantsincorporatevolunteerism

N/A

~81%in2024(N/Ain2015) ~85%in2024(from80%) ~37%atYE2024(from32%)(4) 0.21in2024(from0.31)

Made2024ADFgrantsin~72%ofcountriesinwhich weoperate

~94%of2024grantsincorporatedemployee volunteerism

(1) Basedonpreliminary,unauditedfull-yeardata.Inprioryears,disclosedauditeddatathroughthirdquarter.

(2) WehaveadjustedourcalculationmethodologytobettercapturecertainScope1sources,resultinginamodestdeclinefromprioryear.Additional informationandreconciliationstoprioryearcanbefoundinourESGDownload.

(3) Wateruseandefficiencyatoursitesaredrivenprimarilybyemployeecountandsanitationandcanbeaffectedbyclean-upandrestorationfollowing singularevents;sitesintheWorldResourcesInstituteriskcategoriesshiftannually.

(4) Ourgoalistofosteraworkforcerepresentativeofthecommunitiesinwhichweoperate;asoneindicator,wetrackthepercentageoffemalesinmanager levelandabovepositionsglobally.

AsrequiredbytheCSRDandconsistentwithregulationsestablishedthroughtheEuropeanSustainabilityReporting Standard,in2024weundertookadoublematerialityassessment.Thisprocessincludedinterviewswithinternaland externalstakeholderssuchasmembersofmanagement,customersandnon-governmentalorganizations(NGOs),aswell asreviewsourindustryandpeercompanyreports,todeterminetopicsthatarefinanciallymaterialorimpactmaterial.

PEOPLEANDCULTURE

Ourpeople-focusedpillarsincludeenhancingtheexperienceofourmanufacturingemployeesandmakingmerit andtransparencyevenmorefoundationaltoouremployeeexperience. Membersofourseniorleadershipformally sponsororactivelyengageinprogressingthesepillars.Wehaveaglobalinfrastructureandresourcesineachofour regionstoadvanceourtalentprioritiesandregularlyreportto,andengagewith,ourstakeholderssotheycanassessour progress.

Ouremployeeexperiencedependsonourculture,leadership,technologyandworkenvironment.Toenhancethis experience, wehaveadvancedouremployeelisteningpracticesandexpandeddigitalaccessforourmanufacturing andremoteemployees;enabledthecontinuousgrowthofouremployeeresourcegroups,whichareopentoall employees;andmaturedourenterpriseleaderdevelopmentprogramming.

Our2024employeeengagementsurveyforthesecondyearleveragedamodernizedplatformusingasignificantly expandedsetofquestions.Includedwithintherespondentgroupwereemployeesfromallrecentacquisitionsandwe maintainedourprior-yearresponserateof84%despitethesignificantlylargersurveypopulation. Ourenterprise engagementscoreof85%reflectedpositivetrendsacrossourenterpriseandkeyfocusgroups. Themostnotable gainswereinareaswehadspecificallytargetedforaction,includingcareeradvancementopportunity,development opportunityandconfidenceinbusinessstrategy.

Ourenterprisecompetencymodellaunchedin2024representsourglobalstandardfortheleadershipskillsand behaviorsthatwedevelopinouremployeessowecanachieveourvision. Thismodelestablishesclearexpectations thatalignwithourvaluesandstrategies,andincreasesfairness,consistencyandtransparencyinhowwehire/select, promote,developandrewardtalentwithinandacrosslevelsandbusinessunits.Wecontinuetoembedthisstandardinto ourtalentprocessesandpractices,includinghowweassesstalentandsuccessionreadiness,howweshape developmentplans,whattrainingweinvestinandoffer,andwhatwelookforinthetalentwehire.

Diversityisoneofourvalues,reflectingourbeliefthatwegainstrengthanddeliverbetteroutcomesfromvaried ideas.Wedrawfromthelargestpooloftalenttohelpfindthebestpeopleforourcompanyandarecommittedtoonly consideringlegallycompliantmethodstoenhanceinclusion. Weaimtofosteranenvironmentwhereouremployees withvariousskills,experiencesandbackgroundscangrowandbeincreasinglyproductiveandinnovative,allowing ustobenefitfromahighlyengagedteamandattractandretaintoptalentforthebenefitofourstakeholders. In 2024,amongotherthings,weadvancedourpeople-focusedstrategicpillars;drovegreateraccountabilityandprogress throughquarterlyleadershipdashboardsandbiannualcheck-ins;andlaunchedourfirstvoluntaryself-identification campaigntobetterunderstandourglobalworkforcemix.Our2024EEO-1statistics,whichreflectinformationvoluntarily disclosedbyourU.S.employees,canbefoundinourESGDownload,whichisnotincorporatedbyreferenceherein.

Weannuallyevaluatepayequity,makingmerit-basedpayadjustmentswhereappropriate.Ourteamsengage withcompanyleadershiponourpayequity/transparencyprioritiesandimplementadvancementsinourprocessthat considerstotaldirectcompensation,includingbasepay,annualincentivecompensationandcash/equity-basedlongtermincentives. In2024,weexpandedourcoverageto90%+ofourglobalemployeepopulation,with substantialexpansioninourmanufacturingworkforce.Wealsoestablishedregionally/locallytailoredstrategies foradvancingpayequityandtransparency,includingengagingemployeesinconversationsaboutpay; enhancingtrustthroughenhancedpayprogramtransparency;andensuringregulatorymonitoringreadiness andcompliance.

STOCKHOLDERENGAGEMENT

InadditiontoourongoingprogramthroughwhichourCEO,CFO,businessleadersandInvestorRelationsteam engagewithourstockholdersthroughouttheyear,wesemiannuallyengagewithourlargestinstitutionalinvestorsto solicitfeedbackonourstrategies,governanceprofile,executivecompensationandsustainabilityprogress,offeringto includedirectorsinscheduledmeetings. Ourobjectivesaretomaintainregularandthoughtfulengagementtodirectly obtainfeedback;continuetostrengthenourrelationshipswithinvestors;andgatherperspectivestoidentifypotential improvementopportunities. OurBoardandmanagementbelievethatongoingstockholderengagementfostersadeeper understandingofevolvinginvestorexpectationsandhelpsensurewecontinuetoreflectbestpractices.

2024ENGAGEMENTRESULTS*

OutreachConversations

In2024,wecontactedourtop35investorsin proxyseasonandtheoff-season.OurLead IndependentDirector(LID),Governance CommitteeChairandmanagementanswered questionsanddiscussedmattersofinvestor interest. Weengagedwitheverystockholder whoacceptedourinvitationtomeetor otherwiserequestedameeting,andourLead IndependentDirectorledthemajorityofour off-seasonengagements.

*Basedonpercentageofsharesoutstanding.

Wediscussedtheresultsandfeedbackfromour2024engagementregardingexecutivecompensationandsocial sustainabilitywiththeCompensationCommitteeandregardinggovernanceandenvironmentalsustainabilitywithour Board’sGovernanceCommittee.WealsosharedhighlightswithourBoardtosupplementthereportsfromthose CommitteeChairs.

InApril2024,reflectingfeedbackfromprior-yearengagementsandourBoard’sdecisiontoproactivelyadopt specialmeetingrights,ourstockholdersapprovedaCertificateofAmendmenttoourAmendedandRestated ArticlesofIncorporationtoprovidethatstockholdersholding25%ofouroutstandingcommonstockhavetheright torequestthatwecallspecialmeetingsofstockholders.

2024EngagementFeedback

Theprimaryareaoffocusduringour2024engagementswastheprogresssinceourSeptember2023CEO transition,includingarecapofthethoughtfulsuccessionplanningprocessthatledtotheappointmentofourCEOwho hassincesuccessfullynavigatedkeyindustrychallengeswhiledeliveringstrongfinancialresultsandguidingour expansionintonewmarketsegments.Duringthistime,ourExecutiveChairmanhasprovidedstrongmentorshipwith Boardandbusinessleadershipchanges.

GovernanceFeedback

Our2024engagementsprovidedfeedbackonthegovernancemattersdescribedbelow.

• Boardcomposition,includingthebalanceofskills,qualificationsanddemographicsonourBoardafterthe additionofseveralnewdirectorsanddepartureofcertainlonger-tenureddirectors

• Boardrefreshment,includingourongoingdirectorsuccessionplanningprocesstoensurearobustpipelineof potentialnewdirectors,therationaleforrecentdirectorappointmentsandourGovernanceCommittee’scurrent searchforcandidateswithpubliccompanyboardexperienceandglobalfood,logisticsand/orsupplychain expertiseorsubstantialcompensation,talentmanagementandexecutivesuccessionplanningexperience

• Boardleadershipstructure,includingtheworkingrelationshipsamongourExecutiveChairman,Lead IndependentDirectorandCEO;thepotentialforadifferentBoardleadershipstructureinthefuture,recognizing thatourcurrentstructurehasprovidedstabilityduringaperiodofsignificantBoardandmanagementchange, allowingourCEOtoprioritizebusinesschallengesandleadershipdevelopmentwhileourExecutiveChairmanled theonboardingofnewdirectors;andtheappointmentofnewCommitteeChairstoadvanceBoardleadership successionplanning

• Boardonboarding,riskoversightandengagement,includingournewdirectororientationandonboarding processes,aswellasplanstofurtherenhanceongoingdirectordevelopment;ourBoard’soversightofkeyrisks, includingcybersecurity;andtheadditionalengagementofcertainofourdirectorsonAdvisoryCouncils, providingthemwithanopportunitytoengageinanon-fiduciarycapacitywithourbusinessleadersandindustry expertstoadvancekeyareasofstrategicfocus

•Our stockholderrights profile,particularlyourproactiveadoptionofastockholderrighttorequestthatwecall specialmeetingsofstockholders

•Theexpanded directorskillsmatrix inour2024proxystatement,includingthetieredclassificationsofindustry andfunctionalexperienceprovidingenhancedclarityandopportunitiestoenhancethedisclosuretoinclude additionalinformationofvaluetoourstakeholders

EnvironmentalSustainabilityFeedback

Environmentalsustainabilityremainedasignificantareaoffocusforthestockholderswithwhichweengaged. InvestorsappreciatedourexpandedsustainabilityreportingandenhancedtransparencyinourIntegratedReports, proxystatements,ESGDownloadsandCDPresponses. Duringourconversations,weprimarilydiscussedthematters relatedtothistopicdescribedbelow.

•Our progressagainstour2025and2030sustainabilitygoals,includingoursubstantialachievementofthe formersetofgoalsandmanagement’sfocusonadvancingroadmapsdevelopedtodeliverthelonger-termsetof goals

•Our effortstoreduceGHGemissions,includingoursubstantialreductionofScope1and2emissions;our progressengagingwithsupplierstoaddressthechallengesinherentinreducingScope3emissions;andour emissionsmeasurementmethodology,includingourplannedtransitionfromspend-basedtomaterials-based measurementtoprovideamoreaccuraterepresentationofourprogressbyminimizingtheimpactof macroeconomicfactorssuchasinflation

•Our evaluationofoursupplychain anduseofthirdpartiestoauditsuppliersusingarisk-basedapproachthat considersourspendandcountry-specificrisks,aswellastheremediationwerequirefromflaggedsuppliersto continueourbusinessrelationship

•Our waterusage,notingthatwhilewearenotamajordirectconsumerofwater,ourpapersuppliersare significantusersofwater

•The integrationofenvironmentalsustainabilityintoourstrategy toleadattheintersectionofthephysicaland digitaltohelpsolvekeyindustrychallenges,andour Board’soversightthereof

•The actionswehavetakentocomplywithincreasingregulatoryrequirements,includingtheCSRDand CorporateSustainabilityDueDiligenceDirectiveintheEuropeanUnion,aswellaslawsandregulationsatthe state-levelintheU.S.

SocialSustainabilityandExecutiveCompensationFeedback

WerespondedtoinquiriesfrominvestorsonsocialsustainabilityregardingtheCompensationCommittee’sregular leadershipsuccessionplanningandourBoard’sexposuretolower-levelleadersinthesuccessionpipeline,the demographicmixofourmanagement,andourdeploymentoftrainingtoadvancetheprofessionaldevelopmentofour teammembers.Executivecompensationwasnotasignificanttopicofdiscussionduringour2024engagements.

EngagementProcess

Robust and Ongoing Stockholder Engagement

YEAR-ROUNDENGAGEMENTPROCESS

ProxySeasonEngagementOff-SeasonEngagementDiscussions/Actions

Offermeetingstotop35 investorstodiscussitems beingbroughtbefore stockholdervote;discuss preliminaryAnnualMeeting voteresultswithBoard

Contacttop35investorsto seekmeetingstodiscussour strategies,Board,executive compensation,sustainability andgovernance

Reportonprocess,results andfeedback,consider whetheranyactionsare advisable,andreflect feedbackinnextyear’s proxymaterials

APPROVALOFEXECUTIVECOMPENSATION(PROPOSAL2)

TheCompensationCommitteeoverseesourexecutivecompensationprogram,whichisdesignedtodeliverpayfor performance,withrealizedcompensationprimarilydependentonourachievementofourannualfinancialgoalsand longer-termvaluecreationobjectivesthatadvancetheinterestsofourstockholders.

ExecutiveCompensationProgram

TheCompensationCommitteegenerallyestablishesthesubstantialmajorityofNamedExecutiveOfficer(NEO) targettotaldirectcompensation(TDC)asperformancebased,meaningthatourexecutivesultimatelymaynotrealize thevalueofat-riskcomponentsifwefailtoachievethedesignatedperformanceobjectives. Themixandelementsof 2024targetTDCforNEOsotherthanourExecutiveChairman,whicharedesignedtoincentstrongoperationaland financialperformanceandstockholdervaluecreation,areshownbelow.

2024NEOTARGETTDCMIXANDELEMENTS(1)

PerformanceUnits(PUs)

Market-leveragedStockUnits(MSUs)

Long-TermIncentive(LTI)Compensation

CorporateNEOsBusinessNEOs

•50%ofLTIwithpayout= 0%to200%oftargetaward

•3-yearperformanceperiod

-CompanyEVA(2) (50%)

-CompanyRelativeTSR(3) (50%)

BaseSalary

•50%ofLTIwithpayout= 0%to200%oftargetaward

•3-yearperformanceperiod

-BusinessEVA(2) (75%)

-CompanyRelativeTSR(3) (25%)

•RelativeTSRpayoutcappedat100%ifabsoluteTSRisnegative

•50%ofLTIwithpayout=0%to200%oftargetaward

•1-,2-,3-and4-yearperformanceperiods -100%CompanyAbsoluteTSR(4)

AnnualIncentiveCompensation

CorporateNEOsBusinessNEOs

•Drivesperformancetodeliverannualcompany/businessfinancialgoals

•Individualperformancemodifierbasedonachievementofstrategicobjectives (generallycappedat100%forNEOs)

•Annualfixed-cashcompensationgenerallysetaroundmarketmedian

(1) ExcludesMr.Butierwhosetarget2024TDCasExecutiveChairmanwassubstantiallydifferentthanthatofourotherNEOsbecausehewasnotaparticipantinthe 2024AIPandhis2024LTIawardwasdeliveredintheformoftime-basedRSUsratherthanperformance-basedPUsandMSUs.

(2) EconomicValueAdded(EVA)isameasureoffinancialperformancecalculatedbydeductingtheeconomiccostassociatedwiththeuseofcapital(weightedaverage costofcapitalmultipliedbyaverageinvestedcapital)fromafter-taxoperatingprofit.

(3) RelativeTSRcomparesourTSRtothatofcompaniesinapeergroupsatisfyingcertainobjectivecriteriadescribedinthe CompensationDiscussionandAnalysis sectionofthisproxystatement.

(4) AbsoluteTSRmeasuresthereturnthatweprovideourstockholders,includingstockpriceappreciationanddividendspaid(assumingreinvestmentof dividends).

PayforPerformance

Inthegraphbelow,CEOcompensationreflectsMr.Stander’sSummaryCompensationTablecompensationfor2023 and2024andsuchcompensationofourformerCEO,Mr.Butier,for2020through2022,aswellasour2020-2024TSR of55%.ChangesinCEOpayhavegenerallycorrelatedwithchangesinTSR,exceptintheyearofourCEOtransition, whenCEOpaywassubstantiallylowerthanintheprioryearbecauseMr.Stander’s2023compensationprimarily reflectedhiscompensationasCOO,andin2024,whenCEOpaywassubstantiallyhigherthanintheprioryearbecauseit reflectedMr.Stander’sfirstfullyearasCEO.Seethe CompensationDiscussionandAnalysis sectionofthisproxy statementformoreinformation.

ExecutiveCompensationBestPractices

Assummarizedbelowanddescribedinfurtherdetailinthe CompensationDiscussionandAnalysis sectionofthis proxystatement,ourexecutivecompensationprogramalignswithourfinancialgoalsandbusinessstrategiesandreflects bestpractices.

Payfor Performance

✓ 88%ofCEO’s2024targetTDCdependentoncompanyperformance

✓ RigorousstockownershippolicyrequiresCEOtoown6xbasesalary,50%+ofwhichmustbe vestedshares;doesnotcountunvestedPUsorstockoptionsandonlycounts50%ofunvested MSUsattargetpayoutlevel

✓ Double-triggerequityvestingrequiresterminationofemploymentafterchangeofcontrol

✓ YE2024three-yearaverageburnrateof0.45%,between25th and50th percentilesofS&P500 companies

✓ Compensationclawbackpolicyforexecutiveofficersineventofaccountingrestatement;additional clawbackpolicyappliestoallAIPandLTIrecipients

✓ IndependentcompensationconsultantservesatdirectionofCompensationCommittee

✓ AnnualCompensationCommitteeevaluationandcharterreview

✓ Periodicstrategicreviewofcompensationprogramandassessmentoffeaturesthatmitigate excessiverisk-taking

✓ Releasesfromliabilityandrestrictivecovenantsfordepartingexecutives

Compensation BestPractices

✓ CompensationCommitteereviewofNEOtallysheetsreflectingallcompensationcomponents

✓ NoNEOemploymentcontractsunlessrequiredbylawsormarketpracticesofhomecountry

✓ NoguaranteedAIPawards;participatingNEO2024AIPawardsbasedsolelyonfinancial performance

✓ Noexcisetaxgross-upsonchangeofcontrolseverancebenefits

✓ Notaxgross-upsonperquisites

✓ Noabove-marketinterestratesfordeferredcompensation

✓ Nore-pricingofstockoptionswithoutstockholderapproval

✓ NopayoutofaccrueddividendequivalentsonMSUsunlessanduntilawardsvest

✓ Nostockoptionsawardedbelowfairmarketvalue

✓ Nosupplementalretirementbenefits

RATIFICATIONOFAPPOINTMENTOFPwC(PROPOSAL3)

TheAuditCommitteehasappointedPricewaterhouseCoopersLLP(PwC)asourindependentregisteredpublic accountingfirmforfiscalyear2025andourBoardisseekingstockholderratificationoftheappointment.PwCiswellqualifiedtocontinueservingasourindependentregisteredpublicaccountingfirm,hasadeepunderstandingofour operationsandaccountingpractices,andmaintainsrigorousprocedurestoensureindependencefromourmanagement, Boardandcompany.

TheAuditCommitteeconsideredthequalifications,performanceandindependenceofPwC,thequalityofits discussionswiththeengagementteam,andthefeeschargedbythefirmforthescopeandqualityofservices providedanddeterminedthattheappointmentofPwCfor2025isinthebestinterestofourcompanyand stockholders.

VOTEONSTOCKHOLDERPROPOSALFORSTOCKHOLDERAPPROVALREQUIREMENTFOREXCESSIVE GOLDENPARACHUTES(PROPOSAL4)

JohnR.Chevedden,astockholderresidingat2215NelsonAvenue,No.205,RedondoBeach,California90287who hasbeneficiallyownednofewerthan15sharesofourcommonstocksinceOctober15,2021,hasinformedusthathe intendstopresentaproposaltorequirestockholderapprovalforexcessivegoldenparachutesduringtheAnnualMeeting. Iftheproponentorhisqualifiedrepresentativeattendsandproperlypresentstheproposalforavote,thenthestockholder proposalwillbevotedonduringtheAnnualMeeting.

OurBoard’sGovernanceandCompensationCommitteeshavecarefullyconsideredtheproposalandbelievethat itisunnecessaryandnotinthebestinterestsofourcompanyandstockholdersinlightofourexistingplans,policies andpractices,termination-relatedexecutivecompensationandotherconsiderations. Forthereasonssetforthinits oppositionstatementincludedin Proposal4 ,ourBoardrecommendsthatyouvote AGAINST thisproposal.

GOVERNANCE

Thekeyfeaturesofourgovernanceprogramareshowninthe GovernanceHighlights sectionoftheproxysummary. Weencourageyoutovisittheinvestorssectionofourwebsiteunder GovernanceDocuments,whereyoucanviewand downloadcurrentversionsofthedocumentsshownbelow.Informationonourwebsiteisnotandshouldnotbe consideredpartof,norisitincorporatedbyreferenceinto,thisproxystatement.

•AmendedandRestatedCertificateofIncorporation,asamended

•AmendedandRestatedBylaws(our“Bylaws”)

•CorporateGovernanceGuidelines(our“GovernanceGuidelines”)

•ChartersforourBoard’sAuditCommittee,CompensationCommittee,GovernanceCommitteeandFinance Committee

•CodeofConduct

•CodeofEthicsfortheCEOandSeniorFinancialOfficers

•AuditCommitteeComplaintProceduresforAccountingandAuditingMatters

Youcanrequestcopiesofthesedocuments,withoutcharge,bywritingtoourCorporateSecretaryat8080Norton Parkway,Mentor,Ohio44060.

VALUESANDETHICS(V&E)

CodeofConduct,TalkaboutToolkitsandSupplierStandards

OurCodeofConductappliestoallofourdirectors,officersandemployeesandreflectsourvaluesofintegrity, courage,externalfocus,diversity,sustainability,innovation,teamworkandexcellence. In2024,welaunchedarefreshed CodeofConductthatevidencesourongoingcommitmenttomaintainingavalues-basedculturewhileadaptingto thechangingworldaroundus. Weimprovedclarityandreadability,withrefreshedbranding,expandedcontentonkey topicssuchascybersecurity,dataprivacyandthird-partyriskmanagement,andaddedtopics;wealsoprovided additionalreal-worldguidanceusingupdatedscenariosandQ&AtobetterconnecttheCodetoourteammembers’work anddecision-making.

TheCodeisavailablein30+languagesindownloadableandprintableforms,aswellasthroughapublicinteractive micrositethatprovidestransparencyofouradherencetoethicalconducttoourexternalstakeholders.Ourleadersaffirm theircommitmenttocomplyingwithitwhentheyfirstjoinourcompanyandregularlythereafteraspartofthecompliance certificationprocessdescribedinthe RelatedPersonTransactions sectionofthisproxystatement.Weperformin-person compliancecheck-insatselectglobalsitestomeasuretheeffectivenessofourV&Eprogramusingsurveystomeasure awareness,conductinginterviewswithleadershipandmanufacturingemployees,andimplementinganyneededactions toenhanceawareness.

WeregularlytrainemployeesonCodeofConducttopicsininstructor-ledsessionsheldinpersonorvirtually;in2024, weheldmorethan250ofthesesessionsglobally.Wealsodeploymandatoryonlinetrainingforourcomputer-based employees.In2024,welaunchedoneenterprise-wideandfiveregionalcoursesusingatargetedrisk-basedapproach, withanaveragecompletionratefortheapproximately62,000coursesof~97%.Thetwo“Talkabout”Toolkits(also availablein30+languages)thatwedevelopedduringtheyearempoweredmanagerstoleaddiscussionswiththeir teamsregardingtopicsfromtheCodeofConductusingpresentationslides,whichweresupplementedbyinternalsocial mediacampaignsforouremployeestoengagewiththeircolleaguesacrosstheglobe.

OurglobalsupplierstandardsextendourV&Ecommitmenttoourthird-partyserviceproviders,establishingour expectationthattheydobusinessinanethicalmanner.

BusinessConductGuideLine

OurBusinessConductGuideLine(the“GuideLine”)isawhistleblowerhotlineavailableatallhoursforemployees orthirdpartiestoreportpotentialviolationsofourCodeofConductorapplicablelaws,anonymouslyiftheyso choose.

TheGuideLinemaybereachedbyvisitingwww.averydennison.com/guidelinereport.TheGuideLineisoperatedbyan independentthirdpartyandacceptsreportsinanylanguagetoaccommodatetheneedsofourglobalworkforceand customer/supplierbase.ReportsareinvestigatedunderthedirectionofourChiefComplianceOfficer,inconsultationwith ourlawdepartmentandseniormanagementandwithBoardoversightprimarilybytheGovernanceCommitteeand,for certainaccounting-andfinancial-relatedmatters,alsobytheAuditCommittee.Weprohibitretaliationforgood-faith reporting.

CodeofEthics

OurCodeofEthicsrequiresthatourCEO,CFOandControlleractprofessionallyandethicallyinfulfillingtheir responsibilities.OnlytheAuditCommitteeortheGovernanceCommitteecanamendorwaivetheprovisionsofourCode ofEthics,andanyamendmentsorwaiversmustbepostedpromptlyonourwebsiteortimelyfiledwiththeSECona CurrentReportonForm8-K.Todate,wehavemadenoexemptionsorgrantedanywaiverstoourCodeofEthics.

CODEOFETHICSRESPONSIBILITIES

•Avoidactualorapparentconflictsofinterest

•EnsurecompleteandaccurateSECfilings

•Respectconfidentialityoffinancialandotherinformation

•Employcorporateassetsresponsibly

•ReportCodeofEthicsviolationstoChairofAuditorGovernanceCommittees

Supportingfulfillmentoftheseresponsibilities,ourcontrollershipandinternalauditfunctionsensurethatwemaintain arobustinternalcontrolenvironment,withtheleadersofthesefunctionsregularlyreportingtoandmeetinginexecutive sessionwiththeAuditCommittee.

COMPLAINTPROCEDURESFORACCOUNTINGANDAUDITINGMATTERS

TheAuditCommitteehasadoptedproceduresfortheconfidential,anonymoussubmissionofcomplaintsrelated toaccounting,accountingstandards,internalaccountingcontrolsandauditpractices.

Theseproceduresrelatetoreportsof(i)fraudordeliberateerrorinthepreparation,evaluation,revieworauditofour financialstatementsorotherfinancialreports;(ii)fraudordeliberateerrorintherecordingormaintenanceofourfinancial records;(iii)deficienciesin,ornoncompliancewith,ourinternalaccountingcontrols;(iv)misrepresentationorfalse statementregardinganymattercontainedinourfinancialrecords,statementsorotherreports;or(v)deviationfromfull andfairreportingofourfinancialcondition.Anyperson,includingthirdparties,maysubmitagood-faithcomplaint regardingaccountingandauditingmattersandemployeesmaydosowithoutfearofretaliation.TheAuditCommittee overseestheseprocedures,withinvestigationsconductedunderthedirectionofourinternalauditdepartmentin consultationwithourCorporateSecretary,ChiefLegalOfficer(CLO)andothermembersofseniormanagementtothe extentappropriateunderthecircumstances.

Stockholdersandotherinterestedpartiesinterestedincommunicatingregardingthesemattersmaymakea confidential,anonymousreportbycontactingtheGuideLineorwritingtotheAuditCommitteeChair,c/oCorporate Secretary,8080NortonParkway,Mentor,Ohio44060.

STOCKOWNERSHIPPOLICY

Ourstockownershippolicyrequiresthatour(i)non-employeedirectorsacquireandmaintainminimum ownershipinourcompanyof$500,000,(ii)CEOandExecutiveChairmanacquireandmaintainminimumownership of6xtheirbasesalaryand(iii)Level2andLevel3executivesacquireandmaintainminimumownershipof3xand2x theirbasesalary,respectively. Atleast50%oftheapplicablerequirementmustbeheldinvestedshares.

Thevaluesofthefollowingshares/unitsareconsideredinmeasuringcompliancewithourstockownershippolicy: (i)sharesbeneficiallyownedordeemedtobebeneficiallyowned,directlyorindirectly,underU.S.securitieslaws;(ii)for officers,sharesorunitsheldinqualifiedandnon-qualifiedemployeebenefitplansand50%ofthevalueofunvested MSUsatthetargetpayoutlevel;(iii)fornon-employeedirectors,deferredstockunits(DSUs);and(iv)forofficersand non-employeedirectors,unvestedRSUssubjecttotime-basedvesting.UnvestedstockoptionsandPUsarenot consideredinmeasuringcompliance.DSUs,whichrepresentannualcashretainersdeferredatadirector’selection,are consideredownedbecausetheyareearneduponreceiptandwouldbepaidouttoaparticipatingdirectoruponhisorher separationfromourBoard.

Untilanon-employeedirectororofficerachievestheirminimumownershiprequirement,theyarerequiredto retainanysharesacquired,netoftaxes,fromthevestingofstockawardsorexerciseofstockoptions.Officersmay nottransactincompanystockuntiltheycertifythattheywillremainincompliancewithourstockownershippolicy aftergivingeffecttothetransactiontheyplantoeffectuate.

TheCompensationCommitteeandtheGovernanceCommitteereviewednon-employeedirectorstockownershipin November2024andFebruary2025,respectively.Asofyear-end2024,excludingthefourindividualsappointedinthe past2 1⁄2 years– ourcontinuingnon-employeedirectorshadaverageownershipof10xtheminimumrequirement, aligningtheirinterestswiththoseofourstockholdersandfurtherincentingtheirfocusonlong-termvaluecreation. Other thanMses.MejiaandReverberiandMessrs.DicksonandWagner,whohavefiveyearsfromthedateoftheir respectiveBoardappointmentstoreachthatlevel,ournon-employeedirectorshaveexceededtheminimum ownershiprequiredbyourpolicy.

TheCompensationCommitteereviewedofficerstockownershipinNovember2024.Asofyear-end2024, allNEOs hadachievedtheirminimumownershiprequirement,exceptforMr.Yostwhohasfiveyearsfromthedateofhis appointmentasMaterialsPresidenttoreachthatlevel.

Thecomplianceofourcurrentnon-employeedirectorsandNEOswithourstockownershippolicyatyear-end2024is shownbelow.

STOCKOWNERSHIPPOLICYCOMPLIANCE

Non-EmployeeDirectors

$500,000

BradleyAlford49,623

20x

WardDickson(4) 753––AndresLopez5,901 ✓ 2x

MariaFernandaMejia(4) 976––

PatrickSiewert18,778

DeonStander$6,600,00064,945

ExecutiveChairman

MitchellButier$6,000,000347,836

Level2NEOs

GregoryLovins$2,418,75083,297

FranciscoMelo(5)

$1,552,61717,544

2x

RyanYost(4) $1,575,0009,738––

Level3NEO

DannyAllouche(5) $905,80623,524

(1) MinimumrequirementsforCEOandExecutiveChairman,Level2NEOsandLevel3NEOreflect6x,3xand2x,respectively,ofyear-end2024 basesalary.

(2) Reflectsshares/unitsconsideredinmeasuringcompliancewithourstockownershippolicybasedontheaverageclosingpriceofourcommon stockfromOctober1toDecember31,2024.

(3) Otherthantheindividualsnamedinfootnote(4)below,allnon-employeedirectorsandNEOswerealsoincompliancewiththe50%vested sharesrequirementasofyear-end2024.

(4) Mses.MejiaandReverberiandMessrs.DicksonandWagnerwereappointedtoourBoardinFebruary2024,February2023,June2024and October2022,respectively,andMr.YostwasappointedasMaterialsPresidentinMarch2024.Theseindividualshavefiveyearsfromtheir respectivedateofappointmenttoachievetheapplicableminimumownershiprequirement.

(5) AmountsforMessrs.MeloandAllouchewereconvertedfromeurosandIsraelishekels,respectively,usingtheaveragemonthlyexchange ratesforDecember2024.

INSIDERTRADINGPOLICY

Ourinsidertradingpolicyprohibitsourdirectors,officersandemployeesfromengagingintransactionsinanytypeof securitywhileinpossessionofmaterialnonpublicinformationrelatingtothesecurityortheissuerofthesecurityin breachofadutyoftrustorconfidence,whethertheissuerisourcompanyoranothercompany.Inaddition,(i)iftheyare inpossessionofmaterialnonpublicinformationregardinganyotherpubliclytradedcompany,includingthatofour suppliers,customers,competitorsorpotentialacquisitiontargets,theymaynottradeinitssecuritiesuntiltheinformation becomespublicorisnolongermaterial;(ii)theymaynotpurchaseorsellanysecurityofanyothercompany,including anothercompanyinourindustry,whileinpossessionofmaterialnonpublicinformationaboutthatcompanyobtainedin thecourseoftheiremploymentorservicewithourcompany;and(iii)theymaynotdirectlyorindirectlycommunicate materialnonpublicinformationtoanyoneoutsideorwithinourcompanyotherthanonaneed-to-knowbasis.

Officer/Director10b5-1Plans

Ourinsidertradingpolicycontainsspecificrequirementsregardingcontracts,plansorinstructionstotradeinour company’ssecuritiesenteredintoinaccordancewithSECRule10b5-1,includingwithrespecttomultipleplansand modificationsorterminationsofexistingplans.Wereservetherighttosuspend,discontinueorotherwiseprohibit transactionsundera10b5-1tradingplanifwedeterminethatdoingsoisinthebestinterestofourcompany.

LimitedTradingWindows

AlltransactionsincompanystockmustbepreclearedbyourCorporateSecretary. Ourinsidertradingpolicy restrictstradingincompanystockbyBoardmembers,officersanddirector-levelemployees,oranyotherperson designatedbyourCorporateSecretary,duringblackoutperiods,whichgenerallybegintwoweeksbeforetheendofeach fiscalquarterandendtwobusinessdaysaftertheissuanceofourearningsreleaseforthequarter.Additionalblackout periodsmaybeimposedwithorwithoutnotice,asthecircumstancesrequire.Exceptfortransactionsunderapreviously established10b5-1tradingplan,ifpreclearedindividualsbecomeawareofmaterialnonpublicinformationorbecome subjecttoablackoutperiodbeforetheirtransactioniseffectuated,theymaynotcompletethetransactionevenifthey previouslyreceivedpreclearance.

ProhibitionsonCertainTransactions

Ourinsidertradingpolicyprohibitsourdirectors,officersandemployeesfromshort-sellingcompanystock; transactinginputs,callsorotherderivativesecuritiesinvolvingcompanystock;orpurchasingfinancialinstruments (suchasprepaidvariableforwardcontracts,equityswaps,collarsandexchangefunds)designedtohedgeoroffset anydecreaseinthemarketvalueofcompanystock. Inaddition,directorsandofficersareexpresslyprohibitedfrom–andournon-officeremployeesarestronglydiscouragedfrom–pledgingsharesofourcommonstockascollateralfora loan,purchasingcompanysecuritiesonmarginorplacingcompanysecuritiesinamarginaccount.

Toourknowledgebasedontheirwrittenrepresentationsinourannualdirectorandofficerquestionnaires,allof ourBoardmembersandexecutiveofficerscompliedwithourinsidertradingpolicyduring2024andnoneofthem engagedinanytransactionprohibitedthereby.

ENVIRONMENTALANDSOCIALSUSTAINABILITY

Weworkwithinourcompanyandacrossourvaluechaintoaddresstheenvironmentalandsocialimpactsofour productsandpractices.

Westrivetoadvancetheenvironmentalsustainabilityofourcompanyandvaluechainbydeliveringinnovations thatadvancethecirculareconomy,reducingtheenvironmentalimpactofouroperations,andofferingmore sustainablevalue-creationsolutionsforourcustomers.Wealsoseektomakeapositivesocialimpactbybuildingan engagedandempoweredworkforce,enhancingourworkplaceculture,maintainingoperationsthatpromotehealth andsafety,andsupportingourcommunities.

BOARDOVERSIGHTANDMANAGEMENTRESPONSIBILITY

Webelievethatstrongsustainabilitygovernanceensuresconsistencyandaccuracyoftheinformationwereportto ourstakeholders.Oursustainabilitygovernancestructureisshownbelow.

SUSTAINABILITY GOVERNANCE STRUCTURE

BoardoversightofenvironmentalsustainabilityandcommunityinvestmentisprimarilyconductedbytheGovernance Committee,whichreceivesareportfrommanagementoneachofthesetopicsatleastannually.Inaddition,ourfullBoard engageswithbusinessleadersontheirenvironmentalsustainabilityinitiativesduringitsregulardiscussionoftheir businessstrategies. InOctober2024,ourBoardengagedwithseniormanagementonourenvironmental sustainabilityprogress,havingdiscussedduringtheyearourinnovationeffortstoaddresstheincreasingdemandfor moresustainableproductsandsolutions. InFebruary2025,ourBoardreviewedour2024IntegratedReport,which presentsourprogressthrough2024towardachievingourkey2025and2030sustainabilitygoals.

BoardoversightofsocialsustainabilityisprimarilyconductedbytheCompensationCommittee,whichdiscussed talentmatters,includingpayequityandtransparency,atmultiplemeetingsin2024. InDecember2024,ourBoard engagedwith,andchallengedmanagementon,ouremployeeexperience,includingtheresultsofouremployee engagementsurveyandprogressinourpeople-focusedstrategicpillars.

WithstrategicguidanceanddirectionprovidedbyourCEO,managementisresponsibleforensuringthatwe continuetomakeprogresstowardachievingoursustainabilitygoalsthroughourSustainabilityCouncil,whichisledby ourenterprisesustainabilityleaderreportingtoourCEO,whocontinuestoalsobeaccountableforourprogress.The 24 2025ProxyStatement | AveryDennisonCorporation

BOARD OF DIRECTORS
Committee
Company Leadership Team

council,whichiscomposedofacross-divisionalandcross-functionalgroupofcompanyandbusinessleaders,met regularlyduring2024toensurewelargelydeliverour2025sustainabilitygoals,makeprogresstowardachievingour 2030sustainabilitygoalsandtargets,andaccuratelyreporttoourstakeholders. Ourenterprisesustainabilityleader participatedinallofour2024off-seasonstockholderengagementstoreportonoursustainabilityadvancementsand answerquestionsfrominvestors.

PROGRESSTOWARDACHIEVINGOUR2025AND2030GOALS

Webelievethatoursustainabilityprioritiesreflecttheexpectationsofourstakeholders.Weregularlyreportour sustainabilityprogressandinterviewmembersofmanagementresponsibleforkeysustainabilityinitiatives,aswellas thirdpartiessuchassell-sideanalystsandmembersofsustainabilityorganizations,duringourbiannualmateriality assessments.Thefeedbackwereceivedengagingwithinvestorsrelatedtoenvironmentalandsocialsustainability mattersin2024canbefoundintheproxysummary.

Wepresentscorecardsshowingprogressagainstour2025and2030sustainabilitygoalsthrough2024intheproxy summary.Youcanfindadditionalinformationinour2024IntegratedReportbeingfurnishedtotheSECpriortothe distributionofourproxymaterialsandourESGDownloadbeingmadeavailableonourwebsiteatesg.averydennison.com onorbeforethefilingofthisproxystatement.Informationonourwebsiteisnotandshouldnotbeconsideredpartof,nor isitincorporatedbyreferenceinto,thisproxystatement.

WediscloseoursustainabilitymetricsinaccordancewiththeSASBframework,notingwherethosedisclosures alignwiththeGRIframework,andannuallyrespondtoCDPClimate,WaterSecurityandForests.Weareamember oftheUnitedNationsGlobalCompactandhavemadecommitmentstotheUnitedNationsSustainableDevelopment GoalsandtheScienceBasedTargetsinitiative(SBTi).OurScope1,2and3GHGemissionsreductiontargetshave beenapprovedbySBTiasconsistentwithreductionsrequiredtokeepglobalwarmingtonomorethan1.5°C.We areintheprocessofaligningoursustainabilityreportingwithTCFDrequirements.

TALENTMANAGEMENT

SuccessionPlanning

Recognizingthatwehavehadseveralleadershipchangesinrecentyears,includingtheappointmentsofourCEO andSolutionsPresidentin2023andourInterimCFOandMaterialsPresidentin2024,ourBoardhasfurther prioritizeditsfocusonleadershipsuccessionplanning. InApril2024,reflectingitspracticeofconductingCEO successionplanningatleastannually,ourBoarddiscussedtheprogressofpotentialinternalCEOsuccessors,utilizinga scorecardofdesiredattributesandoutcomesandrequiredandpreferredexperiencesaligneduponwithathird-party leadershipadvisoryfirm.Atthattime,theCompensationCommitteealsoreviewedleadershipchangesanddiscussed potentialsuccessorstothemembersofourCompanyLeadershipTeam,whichincludestheleadersofourbusinessesand corporatefunctions,withreferencetotheirperformancescorecards,ourenterpriseleadershipcompetencymodel,and profilesdetailingtheskillsandexperiencesrequiredoftheseroles.

InOctober2024,theCompensationCommitteereviewedleadershipchangesandthekeyareasoffocusinour MaterialsandSolutionsbusinesses,aswellasenterprise-wide,withaviewtoensuringthatidentifiedpotential successorsaremeaningfullyprogressingwiththeirdevelopmentplans.Inaddition,duringtheyear,theCompensation Committeefocusedmoredeeplyonkeyareasofsuccessionpriority,suchastherolesofCFO,ChiefStrategyand CorporateDevelopmentOfficer(CSDO)andChiefInformationOfficer,anditsChairreportedonthesesuccession planningreviewstoourBoard.

TheCompensationCommitteeregularlyreceivesreportsonexecutivenewhires,promotionsandrolechanges, departuresandopenpositionstoassistwithsuccessionplanning.

LeadershipDevelopment

TheCompensationCommitteeoverseesourtalentmanagementeffortstoidentifyanddevelopourfutureleaders.We maintainarobustperformancereviewprocessandestablishleadershipdevelopmentplansforourtoptalent,whilealso providingcareeradvancementopportunitiestoouremployeesmorebroadly. Seniormanagementreportstothe CompensationCommitteeonourleadershipbyidentifyinghigh-potentialtalent,helpingtheseindividualsadvance

theskillsandcapabilitiestobecomeourfutureleaders,andensuringthattheyareexecutingdevelopmentplansto progressthemtowardidentifiedroleswithgreaterresponsibility. Aspartofitsregularmeetingprocess,ourBoardhas theopportunitytoengagewithourbusinessandfunctionalleadersinandoutsidetheboardroom.Inaddition,Board membersperiodicallyvisitourfacilitiestomeetwithlocalmanagementandhavethefreedomtoengagedirectlywithany ofouremployees.

COMMUNITYINVESTMENT

WithBoardoversightbytheGovernanceCommittee,ourcommunityinvestmenteffortshelpstrengthenthe communitiesaroundtheworldinwhichweoperate.WemakemostoftheseinvestmentsthroughADF,whichannually distributesatleast5%ofitsassetsfromtheprioryear.ADF’sgrantmakingisaidedbyouremployeesworldwidewho identifynonprofitorganizationsservingtheirlocalcommunitiesinneedoffinancialsupporttoadvancetheirmissionand impact,makemonetarycontributionsandvolunteertheirtime.

ADF’sgrantmakingstrategyfocusesonprovidingfundingtocharitableorganizationsworkingtoincrease educationaccess,advanceenvironmentalsustainabilityandsupportsecurelivelihoods. Inadditiontothese grantmakingfocusareas,amongotherthings,ADFsupportsemployeesintimesofcrisisandnonprofitorganizations aidingindisasterrelief.

ADFandourcompanycollectivelymade$4.9millioningrantsandothercharitablecontributionsduring2024.

AdvancingStrategicPillars

Insupportofitsvisionandmission,ADFprioritizesgrantstocommunitiesandgeographiesfacingthegreatest need.Theaggregateamountofgrantsmadein2024ineachofADF’sstrategicpillars,aswellasselectgrantrecipients, areshownbelow;theremainderofADF’scontributionswereprimarilymadeintheotherareasdescribedinthissection. Over90%ofADFgrantsincorporatedemployeevolunteerism

HIGHLIGHTSOF2024ADFSTRATEGICPILLARCONTRIBUTIONS

~$700KTOINCREASE EDUCATIONACCESS

•AssociaçãoBeneficenteABIDtoenhance educationalfostercareservicesinBrazil

•MindsMatterClevelandtosupportcollege readinessandaccessforstudentsinOhio

•TheWomanityFoundationtoadvance girls’educationinAfghanistan

SupportingEmployeesinTimesofCrisis

~$500KTOADVANCE ENVIRONMENTALSUSTAINABILITY

•BeijingRoots&Shootstosupportyouth conservationprogramsinChina

•GlobalForestGenerationtoscaleforest ecosystemsinSouthAmerica

•QuangBinhCommunityDevelopmentto reduceplasticwasteinVietnam

~$350KTOSUPPORT SECURELIVELIHOODS

•BuildingMarketstoimprovemarket accessforsmallbusinessesinColombia

•DefenceforChildrenInternationalto supportmigrant/refugeewomenand childreninGreece

•TheHunarFoundationtoprovide vocationaltraininginPakistan

ADF’sEmployeeCrisisFundoffersfinancialassistancetoouremployeesimpactedbynaturaldisastersandother humanitariancrises,providingsupportof$650,000tomorethan1,500companyemployeesinBangladesh,Braziland theU.S.in2024.

SupportingDisasterReliefEfforts

ADFpartnerswithanindependentnonprofitorganization,GlobalGiving,todirectlysupportandmatchemployee givingtodisasterreliefeffortsaroundtheglobe.During2024,ADFandouremployeesmadedonationstoorganizations respondingtoeventsinBrazil,Japan,SpainandtheU.S.,aswellasprovidingemergencyandlong-termsupportto peopleinneedintheMiddleEast.

EngagingEmployees

ThroughADF’ssignatureGrantingWishesprogram,employeesorganizevolunteereventsandnominatelocalNGOs toreceivegrants.In2024,ADFmade$1.1millionofgrantsin34countriesthroughthisprogram.

ProvidingCollegeScholarships

ADFprovidedcollegescholarshipstoselectedchildrenofcompanyemployeesin2024,furtheringitsgoalof increasingeducationalaccess.TheprogramadministeredbyScholarshipAmericaannuallyawardsscholarshipsinthe U.S.andCanada.In2024,ADFengagedtheInstituteofInternationalEducationtoadministerasimilarprogramin Bangladesh,Brazil,Honduras,India,Malaysia,Mexico,SouthAfrica,SriLanka,TurkeyandVietnam,withplanstofurther expandtoothercountriesinwhichwehaveasignificantemployeepresence.

26 2025ProxyStatement | AveryDennisonCorporation

OURBOARDOFDIRECTORS

OVERVIEW

OurBoardoversees,counselsandensuresmanagementisservingthebestinterestsofourcompany,withaview towardmaximizingtheperformanceofourbusinessesanddeliveringlong-termvalueforallourstakeholders.

PRIMARYBOARDRESPONSIBILITIES

•EstablishBoard/Committeecomposition,structureandresponsibilitiestoensure strongindependentoversight

•Conduct directorsuccessionplanning tomaintain engagedBoard withbalanceofskills,qualificationsanddemographics

•Oversee businesses,strategyexecution,riskmitigation,governanceprofileandsustainabilityprogress

•Approve annualoperatingplan andkeystrategicdecisions,including acquisitions andsignificantfixedandinformation technologycapitalexpenditures

•Maintain integrityoffinancialstatements andoversee capitalallocation,including dividendsandsharerepurchases

•Evaluateperformanceofseniorleadersanddetermine executivecompensation

•Conduct CEOandotherexecutivesuccessionplanning tohelpdevelopleadersthatadvanceourfuturegrowthandensure engagedandempoweredteams

2025DirectorNominees

OurGovernanceGuidelinesprovideourBoard’sviewthatasizebetween8and12directorsallowsforeffective Boardfunctioning,althoughitmayperiodicallycomprisealargerorsmallernumberofdirectors.UnderourBylaws,the numberofdirectorsshallbefixedfromtimetotimebyBoardresolution;ourBoardhasfixedthecurrentnumberof directorsat9.

Our2025directornomineesareshowninthechartbelow.AsshownbyindividualintheDirectorMatrixintheproxy summary, theybringabalanceofindustryandfunctionalexperienceinoverseeingmanagementinadvancingour strategiesandachievingourfinancialgoals

1 BradleyA.Alford 682010RetiredChairman&CEO,NestléUSA

2 MitchellR.Butier 532016Chairman-Elect,AveryDennisonCorporation–

3 WardH.Dickson^ 622024 RetiredEVP&CFO,WestRockCompany

4 AndresA.Lopez 622017RetiredPresident&CEO,O-IGlass,Inc.

5 MariaFernandaMejia 612024RetiredCEO,International,NewellBrandsInc.

6 FrancescaReverberi 532023SVP,EngineeredMaterials&PlasticsSolutions,TrinseoPLC

7 PatrickT.Siewert* 692005RetiredManagingDirector&Partner,TheCarlyleGroupInc.

8 DeonM.Stander 562023President&CEO,AveryDennisonCorporation–

9 WilliamR.Wagner 582022CEO,SemrushHoldings,Inc.

AC=AuditCommitteeCC=CompensationCommitteeGC=GovernanceCommitteeFC=FinanceCommittee * =LeadIndependentDirector Š =Chair Š =Member ^ =NewDirector

Theagesofourdirectornomineesrangefrom53to69,withan averageageof61. Theirlengthsofservicerange fromlessthanoneto20years,withan averagetenureof7years.

BoardMeetingsandAttendance

OurBoardmetfivetimesduring2024.Therewere27BoardCommitteemeetingsduringtheyear. Alldirectors attendedatleast75%oftheirrespectiveBoardandCommitteemeetings;averageattendancewas98%. Inaddition, ourdirectorsregularlyengagedonstrategic,businessandfinancialmatterswitheachofourExecutiveChairmanand CEOoutsideofmeetings.Directorsarestronglyencouragedtoattendannualstockholdermeetingsunderour GovernanceGuidelinesand allthen-servingdirectorsattendedthe2024AnnualMeeting

AdditionalBoardEngagement

Bringingtheirindustryandfunctionalexpertise,someofourdirectorsparticipate–incertaincases,togetherwith third-partyexperts–onourAdvisoryCouncils,providingtheirinsightsoutsidetheboardroominanon-fiduciarycapacity tomanagementonkeystrategicinitiativesandcybersecurityriskmanagement.Thesecouncilsdonotpossessgoverning authority,whichremainswithapplicablemanagementteams.Atthistime, Mr.WagnerisamemberofourDigital AdvisoryCouncilandourCybersecurityAdvisoryCouncil;Mses.MejiaandReverberiaremembersofourFutureof ConsumerPackagingAdvisoryCouncil;andMr.AlfordisamemberofourFoodAdvisoryCouncil.Atyear-end2024, Mr.ButierservedontheCybersecurityAdvisoryCouncilandMr.Standerservedontheotherthreecouncils,ineach caseintheircapacityascompanyofficers.DirectorsservingonAdvisoryCouncilsarenotcurrentlyprovidedany additionalcompensationfordoingso,butthatcouldchangefornon-employeedirectorsasthetimecommitmentsoftheir servicecontinuetobeassessed.

GOVERNANCEGUIDELINES

OurGovernanceGuidelinesprovidethegovernanceframeworkforourcompanyandreflectthevaluesofourBoard, ashighlightedbelow.Theyarereviewedatleastannuallyandamendedfromtimetotimetoreflectchangesinregulatory requirements,evolvingmarketpractices,recommendationsfromouradvisorsandfeedbackfromourinvestors.Our GovernanceGuidelineswerelastamendedinDecember2024.

BOARDGOVERNANCEHIGHLIGHTS

✓ Boardof9directorsreflectssignificantrefreshmentinrecentyears

Board Composition

Director Independence

BoardLeadership Structure

BoardCommittees

BoardDuties

✓ Mandatoryretirementafterage72withnoexemptionsorwaiversallowedorgranted

✓ Onaverage,directorageof61yearsandtenureof7years

✓ 33%ofdirectorsvoluntarilyself-reportedasbeingfromdemographicallydiversebackgrounds

✓ Directornominees78%independent

✓ Executivesessionsofindependentdirectorsheldat3Boardmeetingsin2024

✓ AnnualreviewofBoardleadershipstructure

✓ RobustLeadIndependentDirectorroleandindependentAudit,CompensationandGovernance Chairs

✓ AnnualcompositionreviewandperiodicstructuralreviewandChair/memberrotation,includingin 2024givennewanddepartingdirectors

✓ Actunderannuallyreviewedchartersreflectingstakeholderexpectationsandbestpractices

✓ DirectorsrequiredtoattendBoard/Committeeandstockholdermeetings

✓ RegularCEOandexecutiveleadershipsuccessionplanning

✓ Ongoingreviewoflong-termstrategicplans,includingkeyrisksandmitigatingstrategies

✓ Directorsentitledtorelyonindependentlegal,financialorotheradvisorsatourexpense Continuous Board Improvement

Director SuccessionPlanning

✓ Newdirectorsreceiveorientationmaterialsandengagewithseniormanagementtofamiliarize themselveswithourBoardandcompany,receivingadditionalorientationafterjoiningBoard committeestobetterunderstandtheirresponsibilitiesandprocesses

✓ Continuingeducationthroughmeetingswithmanagement,visitstoourfacilitiesandparticipationin directoreducationprograms

✓ AnnualevaluationprocessensuresBoard,Committees,Chairman,LeadIndependentDirectorand CommitteeChairsarefunctioningeffectively

✓ RegularreviewofBoardcompositionandongoingdirectorsuccessionplanning

✓ Biannualindividualdirectorfeedbackprocessadvancescontinuousdirectordevelopmentand assistswithsuccessionplanning

DIRECTORINDEPENDENCE

OurGovernanceGuidelinesrequirethatourBoardcompriseamajorityofdirectorswhosatisfythecriteriafor independenceunderNewYorkStockExchange(NYSE)listingstandardsandthatourAudit,Compensationand GovernanceCommitteesbecomposedentirelyofindependentdirectors.Anindependentdirectorisonewhomeetsthe independencerequirementsoftheNYSEandwhoourBoardaffirmativelydetermineshasnomaterialrelationshipwith ourcompany,directlyorindirectlyasapartner,stockholderorofficerofanentitywithwhichwehaveabusiness relationship.

Eachyear,alldirectorsservingpartoralloftheyearcompleteaquestionnairedesignedtosolicitinformationthatmay haveabearingonourBoard’sindependencedetermination,includinganyrelationshipstheyhavewithourcompany, directlyorindirectlythroughourcompany’ssaleorpurchaseofproductsorservicestoorfromanycompaniesorfirmsby whichtheyareemployed.TheGovernanceCommitteediscussesanydisclosuresmadeinthequestionnairesrelevantto itsindependenceassessmentwithourCorporateSecretary,aswellasanytransactionsourcompanyhaswithdirectoraffiliatedentities. InFebruary2025,afterreviewoftheirrespectiverelationships,theGovernanceCommittee concludedthatonlyMessrs.ButierandStanderhadrelationshipsthatweredisqualifyingunderNYSElisting standards,otherwisematerialorimpaireddirectorindependence. UpontherecommendationoftheGovernance Committee,ourBoardaffirmativelydeterminedthe10directorsnamedbelowservingforallorpartof2024tobe independent;7of9ofourdirectornomineesareindependent.

2024INDEPENDENTDIRECTORS2025DIRECTORNOMINEEINDEPENDENCE

BradleyAlford WardDickson KenHicks AndresLopez

MariaFernandaMejia FrancescaReverberi

PatrickSiewert

JuliaStewart

MarthaSullivan

WilliamWagner

*ExcludesMs.Stewart,Mr.HicksandMs.SullivanwhodepartedfromourBoardinApril,NovemberandDecember2024, respectively.

Foradiscussionofthepotentialimpactoftenureondirectorindependence,seethe

BoardRefreshmentandDirector SuccessionPlanning sectionofthisproxystatement.

BOARDLEADERSHIPSTRUCTURE

OurGovernanceGuidelinesgiveourBoardthediscretiontoseparateorcombinetherolesofChairmanandCEOasit deemsappropriatebasedontheneedsofourcompanyatanygiventime.Tofacilitatethisdecision-making,the GovernanceCommitteeannuallyreviewsourBoardleadershipstructure,givingconsiderationto,amongotherthings,our financialposition,businessstrategiesandgovernanceprofile,aswellasanyfeedbackreceivedfromourinvestorsand otherstakeholders.

During2024,wehadaCEOandnon-independentChairman,balancedbyaLeadIndependentDirector.AsExecutive Chairman,Mr.ButiercontinuedtomentorMr.StanderwhobecameCEOinSeptember2023.GiventhatMr.Butierserved asanexecutiveofficerduring2024,Mr.SiewertwaselectedbyourindependentdirectorstoserveasLeadIndependent Director.

EXECUTIVECHAIRMANPRIMARYRESPONSIBILITIES

InadditiontocustomarydutiesofChairman:

•Provide Board’scollectiveinputoncompanystrategies toCEO

•EngagewithCEOon value-enhancingstrategicopportunities,aswellasother keyrelationshipsandstrategicalliances

•SupportCEOandCompanyLeadershipTeamin expandinganddeepening relationshipswithkeystakeholders

•Participateincertain AdvisoryCouncils

• MentorCEO,actingasprincipalliaisonbetweenhimandBoardmembers

LEADINDEPENDENTDIRECTORPRIMARYRESPONSIBILITIES

Electedannuallybyindependentdirectors

RobustLeadIndependentDirectorRole

• Presideoverexecutivesessionsofindependentdirectors andBoardmeetings whereChairmanisnotpresent

• ApproveBoardmeetingagendas,schedulesandotherinformationsenttoour Board

• Callmeetingsofindependentdirectors if/asneeded

• Consultandmeetwithstockholders

InApril2024,theGovernanceCommitteerecommendedthatMr.Siewert(withhimnotpresentforthediscussionor vote)continueservingasLeadIndependentDirectorthroughtheAnnualMeeting,notingthathehasprovided Messrs.ButierandStandervaluablecounselandguidanceastheytransitionedintotheirnewroleswhileensuring independentBoardoversightofmanagement.ThecommitteealsorecognizedMr.Siewert’ssubstantialeffortwithour stockholderengagementprogram.TheGovernanceCommitteedeterminedthat,inlightofhisdemonstrated commitment,engagementandstrongleadership,Mr.Siewertshouldcontinueensuringindependentstewardshipofour Boardinitsoversightresponsibilities.Thecommittee’sdecisiontookintoaccounthissignificantcontributionsasa memberandformerChairoftheAuditandGovernanceCommitteesandmemberoftheFinanceCommittee,aswellas histhreedecadesworkinginAsiaPacific,aregionfromwhich32%ofoursalesoriginatedand58%ofouremployees werelocatedatyear-end2024.UpontherecommendationoftheGovernanceCommittee,theindependentdirectorson ourBoardelectedMr.Siewert(withhimnotpresentforthediscussionorvote)asLeadIndependentDirectorthroughthe AnnualMeeting.

MitchButier ElectedannuallybyBoard
PatrickSiewert

OurLeadIndependentDirectorexercisescriticaldutiestoensureindependentBoardoversight.OurGovernance Guidelinesdefinetherole’sprimaryresponsibilities,whichareshowninthechartabove.Mr.Siewertalsoperformedthe activitiesdescribedbelowasLeadIndependentDirectorin2024.

•Asitsthen-Chair,oversawtheGovernanceCommittee’s newdirectorsearchprocess throughApril2024, includingmeetingregularlywithseniormanagementandtheexternalfirmengagedforthesearch;assessingand interviewingprioritycandidates;andleadingdirectorsuccessionplanningdiscussionswiththeGovernance Committee,aswellasone-on-onewithourExecutiveChairman,CEOandotherBoardmembers

•Ledthemajorityofouroff-season stockholderengagements

• Consultedwithourindependentdirectors andprovidedfeedbacktoourExecutiveChairmanandCEObasedon thesediscussions,includingourBoard’sevaluationoftheirperformancewiththeCompensationCommittee Chair

• MetregularlywitheachofourExecutiveChairmanandCEO,aswellasperiodicallywithothermembersof managementandrepresentativesofourindependentregisteredpublicaccountingfirm

SupplementingourLeadIndependentDirectorinprovidingindependentBoardleadershipareourAudit, CompensationandGovernanceChairs,allofwhomareindependent.

BoardLeadershipEvaluationandTransition

DuringourBoard’s2024evaluationprocess,Messrs.ButierandSiewertreceiveduniformlypositivefeedbackintheir respectiverolesasChairmanandLeadIndependentDirector.

InFebruary2025,notingthatMr.ButierremainedbestpositionedtoleadourBoardinoverseeingmanagement’s executionofourstrategies–andgivingconsiderationtohissuccessintheroleofExecutiveChairmansinceSeptember 2023andthevaluablementorshiphehasprovidedtoMr.Standerinhisfirst18monthsasCEO–uponthe recommendationoftheGovernanceCommittee,ourBoardelectedMr.Butier(withhimnotpresentforthediscussionor vote)toserveasChairmanforaone-yeartermendingatthe2026AnnualMeeting,subjecttohisreelection.Alsoatthat time,upontherecommendationoftheGovernanceCommittee,theindependentdirectorsonourBoardelected Mr.Siewert(withhimnotpresentforthediscussionorvote)toserveasLeadIndependentDirectorforaone-yearterm endingatthe2026AnnualMeeting,subjecttohisreelection.

Duringour2024stockholderengagements,whilecertaininvestorsexpressedapreferenceforanindependent chairman,theyappreciatedourBoard’srationaleforitscurrentleadershipstructureinlightofourrecentCEO transitionandotherchangestoourBoardandexecutiveleadership. FollowingasuccessfulCEOtransitionand consistentwiththerangeofanticipatedtimingfortheExecutiveChairmanrole,Mr.Butierwillceaseservingas anexecutiveofficerofourcompanyaftertheAnnualMeeting.

BOARDCOMMITTEES

EachofourBoardCommitteeshasawrittencharterthatdescribesitspurpose,membershipandmeeting structure,andresponsibilities.Thesechartersmaybefoundontheinvestorssectionofourwebsiteunder Governance Documents andarereviewedbytherespectivecommitteeatleastannually,withanyrecommendedchangesadopted uponapprovalbyourBoard.Amendedchartersarepromptlypostedonourwebsite.TheAuditCommitteecharterwas mostrecentlyamendedinOctober2024;theCompensationandGovernanceCommitteeschartersweremostrecently amendedinDecember2024;andtheFinanceCommitteecharterhasnotbeenamendedsinceitsadoptioninDecember 2023.

OurBoardCommitteeshavetheabilitytodelegateauthoritytosubcommitteesandmayobtainadviceandassistance fromconsultants,legalcounselorotheradvisorsatourexpense.Inaddition,eachcommitteeannuallyevaluatesits performance.Theprimaryresponsibilities,membershipand2024meetingandattendanceinformationforthethree independentcommitteesofourBoardaresummarizedbelow. In2024,upontherecommendationoftheGovernance Committee,ourBoardrotatedtheleadershipandmembershipofitscommittees;onlythecurrentChairsandmembers arereferencedinthisproxystatement.

CURRENTMEMBERSPRIMARYRESPONSIBILITIES

WardDickson(Chair)

MariaFernandaMejia

PatrickSiewert

WilliamWagner

AUDIT COMMITTEE

Auditcommitteefinancial experts:

DicksonandSiewert

AllmemberssatisfyNYSE enhancedindependence standards

MEETINGS

2024meetings:7

Avg.attendance:100%

• Overseefinancialstatementanddisclosurematters,includingquarterlyandannualearnings releasedocumentationandSECreports,internalcontrols,criticalaccountingpoliciesand practices,majorfinancialriskexposuresandsignificanttaxmatters

• Appointandoverseeindependentregisteredpublicaccountingfirm,includingevaluatingits qualificationsandindependence,aswellasscope,staffingandfeesforannualauditandother audit,revieworattestationservices; annuallyreviewingitsperformance and regularly consideringwhethertoappointanewfirm; andapprovingengagementandcompensationof anyothersuchfirmpreparingorissuingauditreportsorrelatedworkorperformingotheraudit revieworattestservices

• Overseeinternalauditfunction,includingappointing/dismissingseniorinternalauditor, evaluatinghisorherperformance,reviewingsignificantissuesidentifiedininternalauditsand management’sresponse,anddiscussingannualinternalauditplan,budgetandstaffing

• Performcomplianceoversightresponsibilities,including overseeingcybersecurityrisk managementandrisksrelatedtoinformationtechnologycontrolsandsecurity; maintaining proceduresforcomplaintsregardingaccounting,internalaccountingcontrolsorauditing matters;reviewingfinanciallysignificantlegalmatters;andmakingdeterminationsregarding certainCodeofEthicsviolations

• ApproveAuditCommitteeReport forproxystatement

CURRENTMEMBERSPRIMARYRESPONSIBILITIES

BradleyAlford(Chair) AndresLopez FrancescaReverberi

AllmemberssatisfyNYSE enhancedindependence standardsandqualifyas “non-employeedirectors”under ExchangeActRule16b-3

MEETINGS

2024meetings:5

Avg.attendance:89%

•ReviewandapproveAIPandLTItargetsinlightofcompanygoalsandCEOobjectives; including evaluatingcompanyandindividualperformancetodetermineCEOcompensation andoverseeingCEO’sevaluationofperformanceofotherexecutiveofficers

•Reviewand approveseniorexecutivecompensation,includingbasesalariesandincentive compensation

• Conductleadershipsuccessionanddevelopmentplanning andregularlyreviewexecutive newhires,promotionsandrolechanges,departuresandopenpositions

• Overseeexecutivecompensationstrategy,incentiveplans,equity-basedplansandbenefit programs

• Reviewandprovideoversightoftalentmanagementpoliciesandstrategies,including pay equityandtransparency;leadershipcompensationplans,benefits,recruitingandretention strategies,anddevelopmentprograms;and employeeengagement

• Reviewstockholderengagementprocess,resultsandfeedback relatedtoexecutive compensation,talentmanagementandsocialsustainability

• ApproveCD&AandTalentandCompensationCommitteeReport forproxystatement

• Overseestockholderapprovalofexecutivecompensationmatters,includingsay-on-payand say-on-frequencyvotes

• Assesscompensationprogramsforpotentialencouragementofexcessiverisk-taking

• Recommendnon-employeedirectorcompensation

• Administerclawbackpolicies providingforrecoupmentofincentivecompensationdetermined tohavebeenerroneouslyreceivedbyexecutiveofficersorotherAIPorLTIrecipients

CURRENTMEMBERSPRIMARYRESPONSIBILITIES

WilliamWagner(Chair)

BradleyAlford PatrickSiewert

AllmemberssatisfyNYSE independencestandards

MEETINGS

2024meetings:12*

Avg.attendance:97%

• RegularlyreviewBoardcompositionandconductdirectorsuccessionplanning, including identifyingpotentialnewBoardmembers andrecommendingdirectornominees/appointees

• AnnuallyconsiderBoardleadershipstructure andrecommendwhethertoelectindependent ChairmanorLeadIndependentDirector

• RecommendBoardandCommitteestructure,Chairsandmembers

• Recommendindependentdirectors basedonNYSEindependencestandards

•Reviewand approverelatedpersontransactions

• OverseeannualBoard/Committeeperformanceevaluation andbiannualindividualdirector feedbackprocess

• ReviewGovernanceGuidelines andrecommendchanges

•Reviewandprovide oversightofgovernance,environmentalsustainabilityandcommunity investmentinitiatives,policiesandpractices

• Reviewstockholderengagementprocess,resultsandfeedback relatedtogovernance, environmentalsustainabilityandcommunityinvestment

• Reviewstockholderproposals

• OverseeV&EprogramandCodeofConduct,evaluatesignificantconflictsofinterestand makedeterminationsregardingcertainCodeofEthicsviolations

*Nearlyhalfofmeetingsfocusedexclusivelyonnewdirectorsearch.

InadditiontotheabovecommitteesrequiredbySECrulesandNYSElistingstandards,ourBoardmaintainsa standalonenon-independentFinanceCommittee,informationregardingwhichisshownbelow.

CURRENTMEMBERSPRIMARYRESPONSIBILITIES

FINANCE COMMITTEE

MitchellButier(Chair) WardDickson PatrickSiewert DeonStander

MEETINGS

2024meetings:3

Avg.attendance:100%

EXECUTIVESESSIONS

Conductfinanceoversightresponsibilities,includingreviewingandmakingrecommendationsto ourBoardregardingour:

• Capitalstructure inlightofourfinancialplans,currentoperationsandlong-termstrategies

• Capitalallocationstrategy,includingstockholderdividends,stockrepurchasesandfinancial capacityforsignificanttransactionssuchasstrategicinvestments,acquisitionsand divestitures

• Financingplans, includingequity,debtorothersecuritiesofferingsandprivateplacements thatmaymateriallyimpactourfinancialposition

• Pensionplanfinancingstatus

•OtherfinancialmattersthatourmanagementorBoarddesirestohavereviewedbythe committee

OurBoardbelievesitisimportanttohaveseparateexecutivesessionswithMessrs.ButierandStander,aswellas withMr.Butieronly,eachofwhichwasheldatall2024Boardmeetings.Inaddition,theindependentdirectorsonour Boardmeetatleastonceperyear,havingcandiddiscussionsthatexcludeourExecutiveChairmanandCEOduringwhich theycriticallyevaluatetheperformanceofthem,managementasawholeandourcompany. AsLeadIndependent Director,Mr.Siewertpresidedoverthreeexecutivesessionsofindependentdirectorsduring2024.

OurBoardbeganits2024meetingswithoneofatleasttwoexecutivesessionswithMessrs.ButierandStander todiscusskeyfocusareasandframemeetingdiscussions;thelastsuchsessionattheendofthesemeetings providedtimefortheBoardtoreflectandalignonkeypriorities,afterwhichourindependentdirectorsperiodically metinexecutivesession.

Executivesessionswerealsogenerallyheldduringregular2024BoardCommitteemeetings.Thesesessions excludedmembersofmanagementunlessthecommitteerequestedoneormoreofthemtoattendaportiontoprovide additionalinformationorperspective,inwhichcasethecommitteegenerallymetindependentlythereafter.

Managementisresponsibleformitigatingtheday-to-dayrisksconfrontingourbusinesses,andourBoardoversees enterpriseriskmanagement(ERM).Inperformingitsoversightrole,ourBoardensuresthattheERMprocessesdesigned andimplementedbymanagementarefunctioningeffectivelyandpromotingrisk-adjusteddecision-making.Theteams leadingourbusinesseshaveincorporatedERMintotheirstrategicdevelopmentandexecution,assessingtherisks impactingtheirbusinessesandimplementingandadjustingmitigatingactionsonanongoingbasis.Inaddition,in consultationwithourriskmanagementteamandseniormanagement,they semiannuallyprepareriskprofilesconsisting ofaheatmap;summariesofkeyrisksandmitigatingstrategies;identifiedCompanyLeadershipTeamandbusiness/ functionalownerstoensureaccountability;abilityofrisktransfer;whethertheriskisincreasing,decreasingor consistentwithprioryear;andprior-andcurrent-yearimpactandlikelihoodafterdiscussionwithbusinessand companyleaders.Theseprofilesareusedtoprepareacompanyriskprofilebasedonidentifiedbusinessrisksaswellas enterpriserisks.Amongotherthings,keyrisksattheenterpriselevelin2024includedthemacroeconomicenvironment, cybersecurity,environmentalregulationandsustainabilitytrends.

WecontinuallyadvanceourERMprogram,withoversightbyourBoard.In2024,enhancementsincludedthe prioritizationofkeymitigatingstrategiesforeachrisk,withimpactsassignedtheretotoheightenleadership attentiononhigherimpactpriorities,andhavingone-on-onediscussionswiththeownersofeachriskandrelated mitigatingstrategiestofurtherdriveaccountability.

Wehaverobustprocessesthatsupportastronginternalcontrolenvironmentandpromotetheearlyidentificationand ongoingmitigationofrisks.Ourlegalandcompliancefunctions,includingourChiefComplianceOfficer,reporttoourCLO toprovideindependentevaluationofthechallengesfacingourbusinessesandourInternalAuditleaderreportstothe AuditCommitteeintheconductofhisoperationalresponsibilities,helpingensurehemaintainsindependencefrom management.

OurBoardasawholeoverseesrisksrelatedtoourfive-yearstrategicplanhorizon,exercisingthisresponsibilityby consideringtherisksrelatedtomanagement’sstrategiesandexecutionplans. OurBoardreceivesareportontheERM processandtheresultingcompanyriskprofileatleastannually,engagingthroughouttheyearwithmanagementon keyrisksinitsstrategicplanningdiscussions. Executiveswholeadvariousriskareas–suchaslaw,information technology,tax,compliance,sustainability,employeerelationsandcommunityinvestment–reportperiodicallytoBoard CommitteesandoccasionallytoourfullBoard.

Asshownbelow,ourBoardhasdelegatedelementsofitsriskoversightresponsibilitytoitsCommitteestomore efficientlycoordinateriskmitigationwithmanagement.OurBoardreceivesreportsfromtheCommitteeChairsregarding topicsdiscussedatcommitteemeetings,includingtheareasofrisktheyprimarilyoversee,andengagesonriskmitigation duringitsregularengagementwithourbusinessandfunctionalleaders.

RISKOVERSIGHT

•Businessstrategies

•Corporategovernance

•Acquisitions,divestituresandothersignificanttransactions

•Annualoperatingplanandsignificantfixedandinformationtechnologycapitalexpenditures

•Enterpriseriskmanagement

AuditCommittee

•Financialreporting processesandstatements, andinternalcontrols

•Informationtechnologyand cybersecurity

•Certainlegal,compliance andregulatorymatters

Committee

•Executivecompensationand successionplanning

•AIPandLTIplans

•Leadershipcompensation, benefits,andrecruitingand retention

•Clawbackpolicies

•Non-employeedirector compensation

•Socialsustainability

•Board/Committeestructure andcomposition

•Directorsuccessionplanning

•Governanceandstockholder rights/proposals

•Environmentalsustainability

•Communityinvestment

•V&E/CodeofConduct

•Relatedpersontransactions

•Certainlegal,complianceand regulatorymatters

•Capitalstructureand allocationstrategy

•Financingplans

•Pensionplanfundingstatus

TheAuditCommitteeoverseesourinternalcontrolenvironmentandevaluatestheeffectivenessofourinternal controlsatleastannually.Supplementingtheseprocesses,theAuditCommitteemeetsregularlyinexecutivesessionwith eachofourCFO,Controller,InternalAuditleader,andrepresentativesofourindependentregisteredpublicaccounting firm,andasneededwithothermembersofseniormanagement.TheGovernanceCommitteemeetssemiannuallywith ourChiefComplianceOfficertodiscuss,amongotherthings,significantinternalinvestigations.

During2024,ourBoardwasparticularlyfocusedonoverseeingtheriskareasdescribedbelow.

2024RISKFOCUSAREAS

• Navigatingincreasingmacroeconomicandgeopoliticaluncertainty –Deepeningscenarioplanningandenhancingcapabilitiesto mitigaterelatedrisks

• Connectingphysicalitemswithdigitalidentities –Enablingproducts,solutionsandplatformsinexistingandnewsegmentsand enhancingcollaborationacrossbusinessunits

• AddressingpotentialslowermarketgrowthtrendsinMaterialsbasebusiness –Adjustingcapitalallocationprioritiesand developingplanstorealigncoststructureasneededinlowergrowthenvironment;leadingwithsustainabilityinMaterials’base business;anddrivinggrowthinhigh-valuecategoriesbyacceleratingsustainabilityinnovationwhilecontinuingtodeliveroperational excellenceandproductivity

• Separatingacceleratedinvestmentsinhigh-valuecategoriesfromlower-costmodelinSolutionsbasebusiness –Modifyingcost structuretoimprovereturnsinapparel,acceleratingIntelligentLabelsadoptioninnewsegments,increasingdifferentiationand buildingdigitalsolutionsinVestcom

• Acceleratinginnovationtoaddresssustainability/innovationmegatrends –Refininginnovationroadmap,investingtofuture-proof pressure-sensitivelabelingasadecorationtechnologyofchoice,andadvancingdigitalskillsandcapabilitiesacrossourcompany

• Respondingtochangingroleofemergingmarketsinincreasinglyde-globalizedworld –De-riskinginChinaandright-sizing capitalallocationprioritiestoreflectdevelopmentsinemergingmarkets

• Evaluatingandexecutingacquisitionstoenablegreaterend-marketaccess –Refreshingpotentialtargetsinbroaderindustrialand technologysectors,revisitingpreviouslyconsideredacquisitionsandevaluatingpotentialvalue-accretivecompaniesinMaterials adjacencies

RisksAssociatedwithCompensationPoliciesandPractices

TheCompensationCommitteeannuallydiscusseswithmanagementanditsindependentcompensationconsultant, WTW,whetherourexecutivecompensationprogramismeetingthecommittee’sobjectives.Inaddition, the CompensationCommitteeperiodicallyengagesWTWtoundertakeamoreformalriskassessmenttoensurethatour programdoesnotprovideincentivesthatencourageexcessiverisk-takinginthemanagementoftheirrespective businessesorfunctionalareas.ThecommitteemostrecentlyconductedthisevaluationinFebruary2024.

TheCompensationCommitteenotedthekeyrisk-mitigatingfeaturesofourexecutivecompensationprogram describedbelow.

RISK-MITIGATINGFEATURES

✓ CompensationCommitteehasdiscretiontodecreaseAIPandLTIawardstopenalizepotentiallyriskyactions

✓ Clawbackpolicyrequiresrecoupmentofcertainincentive-basedcompensationtoexecutiveofficersifweare requiredtoprepareaccountingrestatementtocorrectmaterialnoncompliancewithanyfinancialreporting requirement;inaddition,allAIPandLTIrecipientsaresubjecttocompensationclawbackinconnectionwith financialrestatementindicatingfraudormisconduct

Governanceand Oversight

✓ Incentivecompensationplanstructureandtargetsreviewedwithincontextofmarketpractices,tiedtoannual businessplansandcompanygoals,andapprovedbyCompensationCommittee

✓ CompensationCommitteeannuallyevaluatesCEO/seniorexecutiveperformanceagainststrategic,financialand sustainabilitygoals

✓ Officersprohibitedfromhedgingorpledgingcompanystockandrequiredtoengageinstocktransactionsonly duringlimitedtradingwindows

✓ Focusonincentingstockholdervaluecreation,balancedbyretentionandotherconsiderations

✓ Incentivecompensationdesignedtodeliverstrongannualfinancialperformanceandlong-termeconomicand stockholdervaluecreation,balancedgrowthandefficientcapitaldeployment

PayPhilosophy andStructure

Incentive ProgramDesign

✓ Substantialmajorityofleadershipcompensationdeliveredinlong-termequity-orcash-basedawardsto motivatepursuitofsuperiorperformanceandsustainablegrowth

✓ Rigorousstockownershippolicywithminimumownershiprequirementof6xforCEO;requiresnetshares acquiredtoberetaineduntilcomplianceisachievedandpre-transactioncertificationstoensurecontinued compliance

✓ Executiveseveranceplansconsistentwithmarketpractices,withdouble-triggerchangeofcontroltermination benefitsonlyformostseniorNEOs

✓ AIPandLTIawardsincentachievementofannualfinancialgoalsandlong-termeconomicandstockholdervalue creation,usingmultipleperformanceobjectivescoveringdifferenttimeperiods

✓ AIPawardsnotguaranteed,withbelow-thresholdperformanceresultinginzeropayout,paymentssubjectto overallcapof200%andNEOindividualmodifiersgenerallycappedat100%

✓ Equityawardsfullyperformance-based,usingmultipleperformanceobjectives,vestingovermultipletime horizonsandsubjecttothresholdandmaximumpayoutopportunities

•PUscliff-vestatendofthreeyearswithpayoutforrelativeTSRcomponentcappedat100%oftargetif absoluteTSRisnegative

•MSUsvestover1-,2-,3-and4-yearperformanceperiods(averageperformanceperiodof2.5years),with thresholdperformanceatabsoluteTSRof(15)%andtargetperformanceatabsoluteTSRof10%

Givenitsassessedlowriskineachofthesecategoriesandotherfactors,WTWadvisedtheCompensation Committeethatourexecutivecompensationprogramstrikesanappropriatepay-riskbalanceanddoesnotpresentriskrelatedconcerns.

TheCompensationCommitteehasconcludedthatourcompensationpoliciesandpracticesdonotcreaterisks thatarereasonablylikelytohaveamaterialadverseeffectonourcompany.

DIRECTOREDUCATION

InitialOrientation

Ourdirectororientationmaterialsanddiscussionswithmanagementgenerallycoverour(i)stakeholders,values,and financialresultsandgoals;(ii)businessandcompanystrategies,risksandmitigatingactions;(iii)sustainabilitygoals, prioritiesandprogress;(iv)Boardsuccessionplanningobjectivesandprocesses;(v)companyleadershipandrecent Board/Committeemeetings;(vi)Board,governanceandcompanypolicies,includingourGovernanceGuidelines, Committeecharters,conflictofinterestpolicy,non-employeedirectorcompensationprogram,insidertradingpolicyand CodeofConduct;(vii)investormessaging;and(viii)SECfilingsandsustainabilityreporting.

InconnectionwiththeirappointmentstoourBoardinFebruaryandJune2024,respectively,weprovided Ms.MejiaandMr.Dicksonwithinformationregardingthesematters.OurExecutiveChairman,CEOandother membersofmanagementmetwitheachofthemtodiscussthesematerialsandhelpensureasmoothinitial onboarding.Ms.MejiaandMr.Dicksonalsovisitedcertainofourmanufacturingfacilities,joinedasobserversin selectBoardCommitteemeetingstobetterunderstandtheirrespectiveresponsibilities,andwereeachassigned twoindependentdirectorsfromourBoardtofurtherguidetheironboardingprocess.

ContinuingEducation

Ourongoingdirectoreducationprogramconsistsofregularinteractionswithandpresentationsfrommembersof managementregardingourbusinesses,strategiesandfinancialperformance,aswellasperiodicvisitstoourfacilities. In December2024,ourBoardvisitedmanufacturingfacilitiesinMalaysiaandVietnam,meetingwithleadersofourAsia PacificMaterialsandSolutionsbusinesses. InJuly2024,ourBoardvisitedourMaterialsGroup’sheadquartersand innovationcenterinMentor,OhioandourSolutionsGroupinnovationcenterinMiamisburg,Ohio,meetingwithkey leadersfromeachbusinessinconnectionwithitsreviewanddiscussionoftheirstrategicplans.

Weprovidedirectorswithaccesstoaboardroomnewsresourceplatformforthemtokeepinformedofregulatory developmentsandmarketpractices,andreimbursedirectorswhoattendcontinuingdirectoreducationprogramsforfees andrelatedexpenses.

BOARDANDCOMMITTEEEVALUATIONS

TheGovernanceCommitteeoverseesanannualperformanceevaluationofourBoard,Chairman,LeadIndependent DirectorandBoardcommittees,includingtheCommitteeChairs.OurBoardviewstheevaluationprocessasintegralto assessingitseffectiveness,identifyingopportunitiesforimprovementandcontinuallyenhancingBoardfunctioning.

In2023, theGovernanceCommitteeimplementedaseparatebiannualprocessfordirectorstoprovide anonymizedindividualfeedbackontheirpeerstoadvancecontinuousimprovementandassistwithBoardsuccession planning,withthisprocessnexttobeconductedin2025.ThesummarybelowfocusesonthebroaderBoard/ Committeeevaluationprocess.

BOARDEVALUATIONPROCESS Process

•WrittenevaluationsofandcommentsregardingBoard/Committee

•Composition,includingbalanceofskillsandqualifications

•Meetingmaterials

•Meetingmechanicsandstructure

•Fulfillmentofresponsibilities

•Meetingcontentandconduct

•Overallperformance

•EffectivenessofChairman,LeadIndependentDirectorandCommitteeChairs

•Open-endedquestionsregardingkeyareasofBoardfocusandadjustmentstoprocessesimplementedbasedonpriorfeedback

•One-on-onediscussionswithGovernanceCommitteeChairtoprovideadditionalperspectiveonwrittenevaluations

2024ReviewofResults

•Discussionofwrittenevaluationresults,verbalfeedbackandpotentialimprovementopportunities

•ExecutiveChairman,GovernanceCommitteeChairandCorporateSecretary

•GovernanceCommittee

•BoardinexecutivesessionwithExecutiveChairmanandCEO

•Audit,CompensationandFinanceCommitteesinexecutivesession

RecentImprovementActions

•Sharpenedfocuson executivesuccessionplanning andleadershipdevelopment,appointingnewCEOandbusinessgroup leaders,ineachcaseafterhavingevaluatedtheirattributes,experiencesandstrengthsanddeterminedthattheywerebest positionedtoleadourcompanyintothefuture

•Enhanced directorsuccessionplanningwithmoreregularrefreshment,launchingnewdirectorsearchin2023focused oncandidateswithretail/consumerpackagedgoodsorfinanceexpertise,leadingtoMs.MejiaandMr.Dicksonbeing appointedtoourBoardinFebruaryandJune2024,respectively,andconductingnewsearchforoneormoreindependent directorcandidateswithpubliccompanyboardexperienceandglobalfood,logisticsand/orsupplychainexpertiseor substantialcompensation,talentmanagementandexecutivesuccessionplanningexperience

•Advanced strategicoversight,expandingmentorshipsbetweenindividualdirectorsandkeybusinessleadersand increasingBoardengagementwithleadersbelowseniormanagementlevel

•Heightenedfocusonstrategicprioritiesof digitalsolutions and sustainability-driveninnovation,aswellas cybersecurity riskmanagement

•Regulardiscussionof M&Apipelineandpotentialtargets,aswellasperformanceofacquiredcompaniesandintegration learnings

•Refined Boardscheduleandmeetingprocess,implementingadditionalexecutivesessionswithourExecutiveChairman andCEO,refiningcadenceofexecutivesessionsofindependentdirectors,andconductingcertainCommitteemeetings virtuallytomaximizetimeforin-personfullBoardengagement

•Increased ExecutiveChairmanandCEOengagement withdirectorsbetweenmeetingsandmoretimededicatedto executivesessionswiththemtoprovidegreatertimeforin-personBoarddiscussion

STOCKHOLDERENGAGEMENT

Wevaluefeedbackonourgovernanceprogramandactivelysolicitinputthroughstockholderengagementtoensure ourpracticesreflectnotonlyourevolvingbusinessstrategiesbutalsotheexpectationsofourstakeholders.This supplementalengagementprogramandthefeedbackwereceivedongovernancemattersaredescribedintheproxy summary.

CONTACTINGOURBOARD

OurBoardwelcomesfeedbackfromourstakeholders.Wereviewallcorrespondencereceivedfromstockholders, discussingfeedbackreceivedwithseniormanagementand/orourBoardasappropriate.Stockholdersandother interestedpartiesmaycontactourBoard,ExecutiveChairman,LeadIndependentDirector,anyCommitteeChairorany otherindividualdirectorconcerningbusinessmattersbywritingtoBoardofDirectors(orparticularBoardsubgroupor individualdirector),c/oCorporateSecretary,8080NortonParkway,Mentor,Ohio44060.

PROPOSAL1–ELECTIONOFDIRECTORS

OurGovernanceGuidelinesprovideforaBoardofbetween8and12directorsandourBylawsrequirethenumberto befixedbyresolutionofourBoard.OurBoardhasfixedthecurrentnumberofdirectorsat9.

EachofournomineesispresentlyservingonourBoardandhasconsentedtobeingnamedinthisproxystatement andservingifelectedbystockholders.Allnomineesarestandingforelectionforaone-yeartermendingatthe2026 AnnualMeeting.

MajorityVotingStandard;UnelectedDirectorResignationRequirement

Invotingfortheelectionofdirectors,eachsharehasonevoteforeachpositiontobefilledandthereisnocumulative voting.OurBylawsprovidefortheapprovalbyamajorityofvotescastfortheelectionofdirectorsinuncontested electionssuchasthisandrequirethatanyincumbentdirectornotreelectedtenderhisorherresignationfromourBoard. OurBoard,excludingthetenderingdirector,wouldberequiredtodeterminewhethertoaccepttheresignation–taking intoaccounttherecommendationoftheGovernanceCommitteeandanyotherfactorsitconsidersappropriate–and publiclydiscloseitsdecisionandrationalewithin90daysfromthedateelectionresultsarecertified.

BoardRecommendation

OurBoardrecommendsthatyouvoteFOReachofour9directornominees.

Thepersonsnamedasproxieswillvotefortheirelection,unlessyouspecifyotherwise.Ifanydirectornomineewere tonolongerbeabletoserve,yourproxywouldbevotedforasubstitutenomineedesignatedbyourBoardorwewould decreasethesizeofourBoard.

SELECTIONOFDIRECTORNOMINEES

DirectorsareannuallyrecommendedbytheGovernanceCommitteefornominationbyourBoardandelectionbyour stockholders.NewdirectorsmayalsoberecommendedbytheGovernanceCommitteeforappointmenttoourBoard, withtheirelectionbystockholderstakingplaceatthenextAnnualMeeting.TheDirectorMatrixintheproxysummary showsthebalanceofindustryexperience,functionalexperienceanddemographicsonourBoard.

Inevaluatingwhethertorecommendaneworincumbentdirectornominee,theGovernanceCommitteeprimarily considersthecriteriadescribedbelow.

• Independence,toensureasubstantialmajorityofourBoardisindependent

• U.S.publiccompanyleadershipand/orBoardexperienceandworkingorhavingworkedoutsidetheU.S., aswellas industryandfunctionalexperience,ineachcaseconsideringfactorssuchassize,scopeand complexity

• Boardservice atotherU.S.publiccompanies

• Experienceinfinance,accountingand/orexecutivecompensation,aswellasinfunctionalareassuchas marketing,M&A,environmentalsustainability,cybersecurityandscience/engineering/R&D

•Forincumbentdirectors, Board/Committeeengagementandeffectiveness,meetingattendance, compliancewithourstockownershippolicy,andmandatoryretirementdate

• Timecommitments,includingserviceonotherboards; directorswhoarepubliccompanyexecutiveofficers maynotserveonmorethanoneotherU.S.publiccompanyboard

•Potential conflictsofinterest

•Abilitytocontributetoourcompany’s governanceandsustainability priorities

•Individualprofile;whenevaluatingnominees, thecommitteeseekstoconsider (andasksanysearchfirm engagedtoprovide) avariedpoolofcandidateswithrespecttoindustryexperience,functionalexperience anddemographics

TheGovernanceCommitteereviewstheprofileofanycandidatewiththoseofourcurrentdirectorstoensureour Boardhasabroadrepresentationofexperiencesandviewpoints.Sourcesforidentifyingpotentialnomineesinclude currentBoardmembers,seniormanagement,executivesearchfirmsandinvestors.

TheGovernanceCommitteeregularlyreviewsthecompositionofourBoardandconductsdirectorsuccession planningtoensurethatourBoardcontinuestomeettheneedsofourbusinesses,effectivelyoverseemanagementin executingourstrategiesandadvancetheinterestsofourstakeholders.Itssearchfornewdirectorswithretail/ consumerpackagedgoodsand/orfinanceexpertiseledtotheappointmentsofMs.MejiaandMr.Dicksontoour BoardinFebruaryandJune2024,respectively.

StockholderSubmissionofDirectorNominees

TheGovernanceCommitteeconsidersstockholdernomineesonthesamebasisasitconsidersallothernominees.

AdvanceNoticeNominees

Stockholdersmayrecommenddirectorcandidatesbysubmittinghisorhername,biographicalinformation, professionalexperience,writtenconsenttonominationandtheotherinformationrequiredbyourBylawstoour GovernanceCommitteeChair,c/oCorporateSecretary,8080NortonParkway,Mentor,Ohio44060.Tobeconsideredat the2026AnnualMeeting,advancenoticestockholdernominationsmustcomplywiththedeadlinesandother requirementsdescribedinthe VotingandMeetingQ&A sectionofthisproxystatement.

ProxyAccessNominees

Astockholder,oragroupofnomorethan20stockholders,owningatleast3%ofourcompany’sstockcontinuously foratleastthreeyearsispermittedtosubmitdirectornominees(upto20%oftheBoard)forinclusioninourproxy materials,subjecttothedeadlinesandotherrequirementsdescribedinourBylaws.Forinformationonsubmittingproxy accessnomineesforthe2026AnnualMeeting,refertothe VotingandMeetingQ&A sectionofthisproxystatement.

BOARDREFRESHMENTANDDIRECTORSUCCESSIONPLANNING

OurBoard’songoingdirectorsuccessionplanningisdesignedtoensureanindependent,well-qualifiedandeffective Board.

TheGovernanceCommittee’slong-termobjectiveistobalanceourBoardwithregularrefreshmentandstability, ensureaccesstoabroadnewdirectorcandidatepoolandachieveamoreeventenuredistributionofnewer directors,medium-tenuredirectorsandlonger-servingdirectors.

Tenure

OurGovernanceGuidelinesprovidethatdirectorsarenotsubjecttotenurelimitsandourBoarddeterminesits refreshmentpoliciesinlightofourevolvingstrategiesandfinancialposition,exercisingitsdiscretioninthebestinterestof ourcompanyandstockholders.WhiletenurelimitscouldhelpensureregularBoardrefreshment,theycouldalsoresultin theprematurelossofadirectorwhooveralongerperiodoftimehasgainedvaluableexperienceandissignificantly contributingtoourBoardandcompany.Withthedepartureofcertainlonger-tenureddirectorsoverthelast18months, onlytwoofourdirectornomineeshaveservedmorethan10years,withonlyoneofthemhavingservedmorethan 15years

PoliciesSupportingRegularBoardRefreshment

OurBoardhasthepoliciesdescribedbelowtofacilitateregularrefreshment,withtheeventsshownbelowimpacting directornomineeshavingoccurredsincethe2024AnnualMeeting.

POLICYDESCRIPTIONEVENTSOCCURRINGAT/SINCE2024ANNUALMEETING

Mandatory ResignationPolicy

Mandatory RetirementPolicy

ResignationTendered UponChangein PrincipalEmployment

PriorNotice Requirement toPrevent Overboarding

Incumbentdirectorsnotelectedby stockholdersmusttendertheir resignation

Directorsmustretireondateofannual meetingofstockholdersthatfollows theirreachingage72;noexemptionsor waiversallowedorgranted

Directorswhochangetheirprincipal occupation,positionorresponsibility mustvolunteertoresign

Allincumbentdirectorsthenstandingforelectionwere electedatthe2024AnnualMeeting.

Nodirectorsweresubjecttomandatoryretirementatthe 2024AnnualMeeting.

Mr.LopezretiredasPresident/CEOofO-IGlassinMay2024; Ms.Reverberi’sroleatTrinseochangedtoSVP,Engineered MaterialsandPlasticsSolutions,inOctober2024;and Mr.WagneracceptedanewroleasCEOofSemrushHoldings effectiveMarch2025,onwhoseboardofdirectorshehas servedsinceSeptember2022.Ineachcase,thedirector volunteeredtoresignandtheGovernanceCommittee determinedthatthedirectorshouldremainonourBoard.

Directorsmustgivepriornoticebefore acceptinganotherU.S.publiccompany directorshipsothathis/herabilitytofulfill Boardresponsibilitiesmaybeevaluated ifhe/sheservesonmorethanfourother suchboards

NodirectornomineesjoinedanotherU.S.publiccompany boardsincethe2024AnnualMeeting.

UpontherecommendationoftheGovernanceCommittee,Messrs.DicksonandWagnerandMses.Mejiaand ReverberiwereappointedtoourBoardasindependentdirectorsinJune2024,October2022,February2024and February2023,respectively.Mr.StanderjoinedourBoardwhenhebecameCEOinSeptember2023.Mr.HicksandMses. StewartandSullivandepartedfromourBoardinNovember,AprilandDecember2024,respectively.Webelievethatthis recentexperiencewithindividualsbothjoininganddepartingourBoardreflectsongoingrefreshment.

BoththeGovernanceCommitteeandourfullBoarddiscusseddirectorsuccessionplanningatmultiplemeetings heldinthesecondhalfof2024tooverseeanongoingsearchforoneormoreindependentdirectorswithpublic companyboardexperienceandglobalfood,logisticsand/orsupplychainexpertiseorsubstantialcompensation,talent managementandexecutivesuccessionplanningexperience.

BOARDCOMPOSITION

FormerdirectorsMr.HicksandMs.SullivandepartedfromourBoardinNovemberandDecember2024,respectively, givenotherprofessionalcommitmentsandendeavors.Theaverageageandtenureofourdirectorsisnow61and7 years,respectively.Ourdirectornomineesincludenewerdirectorsbringingfreshideasandinsightsintotheboardroom andlonger-servingdirectorswithdeepinstitutionalknowledgeofourBoardandcompany.

TheGovernanceCommitteeseekstorecommendindividualswithabroadmixofskills,qualificationsand demographics, focusingprimarilyonhowapotentialcandidate’soverallprofilecomplementsthoseoftheexisting membersofourBoard.

DIRECTOR DEMOGRAPHICS

From Other Underrepresented Communities*

*One director included in both categories

2025DIRECTORNOMINEES

Thefollowingpagesprovideinformationonour2025directornominees,includingtheirage,servicecommencement, independence,currentBoardrolesandbusinessexperienceduringatleastthepastfiveyears.Wealsoindicatethename ofanyotherU.S.publiccompanyboardonwhicheachnomineecurrentlyservesorhasservedduringthepastfiveyears.

Foreachnominee,wepresentselectskillsandqualifications,whichincludesU.S.publiccompanyleadershipand/or boardexperience,industryandfunctionalexpertiseorexperience,andworkingorhavingworkedoutsidetheU.S. ConsistentwiththeDirectorMatrixpresentedintheproxysummary, SelectSkillsandQualifications excludesboard serviceatU.S.publiccompaniesatwhichtheindividualservedorservesasCEO,COOorCFO.Alldirectornomineeshave demonstratedtheabilitytofulfillthetimecommitmentsnecessarytoserveonourBoardandadvancethelong-term interestsofourstockholders,aswellasthoseofourotherstakeholders.

Age68

DirectorsinceApril2010

Independent

Age53

DirectorsinceApril2016

NotIndependent

Age62

DirectorsinceJune2024

Independent

BRADLEYA.ALFORD

RECENTBUSINESSEXPERIENCE

NestléUSA,anutrition,healthandwellness company

• Chairman&CEOfromJanuary2006to October2012

NestléBrandsCompany,anoperatingunitofNestlé USA

• President&CEOfrom2003toDecember 2005

BOARDROLES

CompensationCommitteeChair

GovernanceCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current:

PerrigoCompanyPLC

PastFiveYears: None

MITCHELLR.BUTIER

RECENTBUSINESSEXPERIENCE

AveryDennisonCorporation

• ExecutiveChairmanfromSeptember2023to April2025

• Chairman&CEOfromMarch2022toAugust 2023

• Chairman,President&CEOfromApril2019 toFebruary2022

• President&CEOfromMay2016toApril 2019

• President&COOfromNovember2014to April2016

• SVP&CFOfromJune2010toOctober2014; continuedservingasCFOuntilMarch2015

• VP,GlobalFinance,&CAOfromMarch2007 toMay2010

BOARDROLES

ExecutiveChairman

FinanceCommitteeChair

OTHERPUBLICCOMPANYBOARDS

Current: None

PastFiveYears: None

WARDH.DICKSON

RECENTBUSINESSEXPERIENCE

WestRockCompany,apaperandpackaging solutionscompany(includingpredecessorRockTennCompany)

• ExecutiveVicePresident&CFOfrom September2013toNovember2021

BOARDROLES

AuditCommitteeChair

FinanceCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current:

AmerenCorporation

PastFiveYears: None

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyboardexperience

• Concurrentserviceononeotherboardand priorserviceonotherboards

Industryexperience

• Technicalexpertiseinconsumergoods industryintowhichourSolutionsGroupsells with40+yearsinrolesofincreasing responsibility,aswellasextensiveexperience inpackaging,primarilyfocusedonconsumer goods

Functionalexperience

• Technicalexpertiseinmarketing,aswellas supervisoryexperienceinfinance,M&Aand R&DasregionalCEO

Works/HasWorkedOutsidetheU.S.

• WorkassignmentsinOceania

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

• Heldrolesofincreasingresponsibilityatour company,includingCFO,COOandCEO

Industryexperience

• Servedinpositionsofincreasing responsibilityinwhatisnowourMaterials Group,gainingpackagingindustryexpertise andextensivematerialsscienceand industrialgoodsexperience

Functionalexperience

• Technicalfinanceexpertisehavingservedas CAOandCFOandenvironmental sustainabilityexpertisefromadvancingour sustainabilitygoalsandvalue-creation opportunities

• Supervisoryexperienceinmarketing,M&A, cybersecurityandR&DasCEO

Works/HasWorkedOutsidetheU.S.

• WorkassignmentsinEurope

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

• ServedasCFOofcompanythenwith $18billioninannualrevenuesand~50K employees

U.S.publiccompanyboardexperience

• Concurrentserviceononeotherboard

Industryexperience

• Technicalexpertiseinpackagingindustry servedbyourMaterialsGroup,aswellas extensiveexperienceinmaterialsscienceand industrialgoods

Functionalexperience

• Technicalfinanceexpertisehavingservedas CFOfor8yearsandsupervisoryexperience inM&A

• Substantialknowledgeofcybersecurityand environmentalsustainability

Age62

DirectorsinceFebruary2017

Independent

Age61

DirectorsinceFebruary2024

Independent

Age53

DirectorsinceFebruary2023

Independent

ANDRESA.LOPEZ

RECENTBUSINESSEXPERIENCE

O-IGlass,Inc.,aglasscontainermanufacturerand supplier

•President&CEOfromJanuary2016toMay 2024

•COO&President,GlassContainers,from January2015toDecember2015

•President,O-IAmericas,fromJuly2014to July2015

•President,O-ILatinAmerica,fromApril2009 toJuly2014

BOARDROLES

CompensationCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current: None

PastFiveYears: O-IGlass,Inc.

MARIAFERNANDAMEJIA

RECENTBUSINESSEXPERIENCE

NewellBrandsInc.,aconsumergoodscompany •CEO,International,fromFebruary2022to February2023

KelloggCompany,afoodmanufacturingcompany

•SVPandPresident,LatinAmerica,from November2011toFebruary2020

BOARDROLES

AuditCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current: None

PastFiveYears: GroceryOutlet,Inc.

FRANCESCAREVERBERI

RECENTBUSINESSEXPERIENCE

TrinseoPLC,aspecialtymaterialssolutions provider

•SVP,EngineeredMaterialsandPlastics Solutions,sinceOctober2024

•SVP,EngineeredMaterials&Chief SustainabilityOfficer,fromAugust2023to September2024

•SVP,SustainablePlastics&Chief SustainabilityOfficer,fromJuly2021toJuly 2023

•SVP,EngineeredMaterials&Synthetic Rubber,fromMarch2020toDecember2021

•GeneralManager,EngineeredMaterials,from October2019toMay2021

BOARDROLES

CompensationCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current: None

PastFiveYears: None

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

•Ledcompanywith$6.5billioninrevenues and~21Kemployeesin2024

Industryandfunctionalexperience

•Bringspackagingindustryexpertise,aswell asextensiveexperienceinmaterialsscience andindustrialgoods,asformerleaderof globalglasscompany,ineachcase complementingourMaterialsGroup

•Givenimpactofwasteandrecyclinginglass valuechain,technicalexpertisein environmentalsustainability,aswellas supervisoryexperienceinfinance,marketing, M&A,cybersecurityandR&DasCEO

Works/HasWorkedOutsidetheU.S.

•WorkassignmentsinLatinAmerica

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyboardexperience

•Priorserviceonotherboards

Industryexperience

•35+yearsofconsumergoodsindustry expertiseintowhichourSolutionsGroup sells,aswellasextensiveexperiencein packaging,focusedprimarilyonconsumer goods

Functionalexperience

•Technicalexpertiseinmarketing,supervisory experienceinM&A,environmental sustainabilityandR&DasregionalCEO,and substantialknowledgeofcybersecurity

Works/HasWorkedOutsidetheU.S.

•WorkassignmentsinLatinAmerica,Europe andAsiaPacific

SELECTSKILLSANDQUALIFICATIONS

Industryexperience

•Technicalmaterialsscienceexpertisefocused onappliedscienceinplastics,aswellas extensiveexperienceinindustrialgoods,in eachcasecomplementingourMaterials Group

Functionalexperience

•Technicalexpertiseinenvironmental sustainabilityasformerenterprise sustainabilityleader

•Advancededucationalandprofessional science/engineeringexpertise,with supervisoryexperienceinmarketingas divisionalleader

Works/HasWorkedOutsidetheU.S.

•WorksinEurope,regionleadingexpansionin sustainability-relatedrequirements

Age69

DirectorsinceApril2005

Independent

Age56

DirectorsinceSeptember2023

NotIndependent

PATRICKT.SIEWERT

RECENTBUSINESSEXPERIENCE

RestaurantBrandsInternationalInc.,afastfood holdingcompany

•AdvisoryChairman,Asia,sinceMay2024

TheCarlyleGroup,adiversifiedinvestmentfirm

•ManagingDirector,PartnerandHeadof Consumer,MediaandRetail,Asia,fromApril 2007toJune2023

TheCoca-ColaCompany,abeveragecompany

•ExecutiveCommitteememberandGroup President,Asia,fromAugust2001toMarch 2007

BOARDROLES

LeadIndependentDirector AuditCommitteeMember FinanceCommitteeMember GovernanceCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current:

MondelēzInternational,Inc.

PastFiveYears: None

DEONM.STANDER

RECENTBUSINESSEXPERIENCE

AveryDennisonCorporation

•President&CEOsinceSeptember2023

•President&COOfromMarch2022to August2023

•VP/GM,RBIS(nowSolutionsGroup),from June2015toFebruary2022

•VP/GM,GlobalCommercialandInnovation, RBIS,fromJanuary2013toMay2015

•VP/GM,GlobalCommercial,RBIS,from October2010toDecember2012

BOARDROLES

FinanceCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current: None

PastFiveYears: None

WILLIAMR.WAGNER

RECENTBUSINESSEXPERIENCE

SemrushHoldings,Inc.,anonlinevisibility managementsoftwareasaservicecompany •CEOeffectiveMarch2025

GoToGroup,Inc.(formerlyLogMeIn,Inc.),a providerofsoftwareasaserviceandcloud-based tools

•President&CEOfromDecember2015to January2022

•President&COOfromJanuary2015to December2015

•COOfromMay2013toDecember2014

BOARDROLES

GovernanceCommitteeChair

AuditCommitteeMember

OTHERPUBLICCOMPANYBOARDS

Current:

SemrushHoldings,Inc.

BlackLine,Inc.(untilMay2025)

PastFiveYears: AkamaiTechnologies,Inc. LogMeIn,Inc.

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyboardexperience

•Concurrentserviceononeotherboard Industryexperience

•Consumergoodsindustryexpertisehaving ledregionaldivisionofglobalbeverage companyintowhichourSolutionsGroupsells andextensiveexperienceinmaterialsscience andindustrialgoods,complementingour MaterialsGroup

Functionalexperience

•Financeand15+yearsofM&Aexpertise leadingconsumer,medialandretail investmentpracticesandadvisingon investmentsinconsumergoodsbusinesses, aswellassupervisoryexperiencein marketingandR&Dasregionalbusiness leader

Works/HasWorkedOutsidetheU.S.

•HasworkedinAsiaPacificfor30years

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

•Heldrolesofincreasingresponsibilityatour company,includingCOOandCEO

Industryexperience

•LedourSolutionsGroupbusinessand oversawourMaterialsGroupasCOO,with packagingindustryexpertiseandextensive experienceindigital,materialsscienceand industrialgoods

Functionalexperience

•Technicalenvironmentalsustainability expertisehavingledourSustainability Council,withsupervisoryexperiencein finance,marketing,M&A,cybersecurityand R&DasCEO

Works/HasWorkedOutsidetheU.S.

•WorkassignmentsinEuropeandAsiaPacific

SELECTSKILLSANDQUALIFICATIONS

U.S.publiccompanyleadershipexperience

•Ledcompanythenwith$1+billioninannual revenuesand~4Kemployees

U.S.publiccompanyboardexperience

•Concurrentserviceononeotherboardafter May2025

Industryexperience

•25+yearsofdigital/technologyindustry expertise,aswellasextensiveexperiencein technology-basedconsumergoods,ineach casecomplementingourSolutionsGroup

Functionalexperience

•Technicalcybersecurityexpertise,aswellas marketingexpertiseasfunctionalleaderat twotechnologycompanies;supervisory experienceinfinance,M&AandR&DasCEO

DIRECTORCOMPENSATION

Inrecommendingnon-employeedirectorcompensationtoourBoard,theCompensationCommitteeseeksto targetcompensationaroundthemedian ofsimilar-sizecompanieswithwhichwecompetefordirectortalent. The majorityofcompensationisdeliveredinequity toaligndirectorinterestswiththoseofourstockholders.

AnnualCompensation

Thecomponentsofour2024non-employeedirectorcompensationprogramareshowninthechartsbelow.

NON-EMPLOYEEDIRECTORCOMPENSATION

TargetGrantDateFairValueofRSUs$185K

BoardRetainer$115K

MatchofCharitable/EducationalContributions$10K

*ThereisnoadditionalFinanceCommitteeChairretaineratthistimebecauseourExecutiveChairmancurrentlyservesinthatcapacity.

Our2017IncentiveAwardPlanlimitsthesumofthegrantdatefairvalueofequityawardsandcashcompensation providedtonon-employeedirectorsduringanycalendaryearto$600,000.

CompensationSetting

Non-employeedirectorcompensationisgenerallyreviewedbytheCompensationCommitteeeverythreeyears.In February2024,theCompensationCommittee’sindependentcompensationconsultant,WTW,analyzedtrendsin non-employeedirectorcompensationandassessedourprogram’smarketcompetitiveness.

UsingbenchmarkdatafrompublicfilingsofcompaniesintheFortune350-500,WTWrecommendedthefollowing increasestonon-employeedirectorcompensation:thetargetgrantdatefairvalueoftheannualRSUawardby$15,000; theBoardretainerby$15,000;theadditionalretainerforourLeadIndependentDirectorby$15,000;andtheadditional retainersforourAudit,CompensationandGovernanceCommitteeChairsby$10,000,$5,000and$5,000,respectively. ThesemodestincreaseswouldbringtotaldirectcompensationforregularBoardserviceto$300,000(or$310,000with thecharitablematch),theprojectedmedianofFortune350-500companiesin2027,thenexttimetheCompensation Committeeplannedtoreviewtheprogram.GivingconsiderationtotheadviceofWTW,theCompensationCommittee recommendedtoourBoardthatthetargetgrantdatefairvalueoftheannualawardofRSUsbe$185,000;theBoard retainerbe$115,000;theadditionalretainerofourLeadIndependentDirectorbe$45,000;andtheadditionalretainers forourAudit,CompensationandGovernanceCommitteeChairsbe$35,000,$25,000and$25,000,respectively.

UpontherecommendationoftheCompensationCommittee,ourBoardapprovedtherevisednon-employeedirector compensationprogramreflectedinthechartsabove,effectiveasofthedateofthe2024AnnualMeeting.

StockOwnershipPolicy

Ourstockownershippolicyrequiresnon-employeedirectorstoownatleast$500,000ofourcompanystock,50%of whichmustbeheldinvestedshares.Onlysharesowneddirectlyorinatrust,DSUsandunvestedRSUssubjecttotimebasedvestingaremeasuredindeterminingpolicycompliance.

Ournon-employeedirectorshaveachievedtheminimumownershiprequiredbyourstockownershippolicyother thanMessrs.DicksonandWagnerandMses.ReverberiandMejiawhohavefiveyearsfromthedateoftheir respectiveBoardappointmenttoachievethatlevel.

EquityCompensation

Theannualequityawardtonon-employeedirectorsconsistsofRSUsthatvestontheone-yearanniversaryofthe grantdate,consistentwiththeone-yeartermtowhichdirectorsareelected.UnvestedRSUs(i)fullyvestuponadirector’s death,disability,retirementfromourBoardafterreachingage72orterminationofservicewithin24monthsaftera changeofcontroland(ii)arecancelledintheeventadirectorisnotreelectedbystockholdersorleavesourBoardbefore vesting,unlessotherwisedeterminedbytheCompensationCommittee.OnMay1,2024,eachofourthen-serving non-employeedirectorswasawarded844RSUswithagrantdatefairvalueof$182,043.

InconnectionwiththeirappointmentstoourBoard,(i)onFebruary22,2024,Ms.Mejiareceivedanawardof132 RSUswithagrantdatefairvalueof$27,816,reflectingthe2023directorequityawardof$170,000proratedforthe remainingtwomonthsofthetermendingatthe2024AnnualMeeting,and(ii)onJune1,2024,Mr.Dicksonreceivedan awardof753RSUswithagrantdatefairvalueof$167,030,reflectingthe2024directorequityawardof$185,000 proratedfortheremaining11monthsofthetermendingattheAnnualMeeting.

AsoftheirrespectivedeparturedatesfromourBoardinApril,NovemberandDecember2024andaspermittedby our2017IncentiveAwardPlan,theCompensationCommitteeacceleratedthevestingoftheRSUsgrantedonMay1, 2024toMs.Stewart,Mr.HicksandMs.Sullivaninrecognitionoftheirdecade-plusserviceonourBoard.

DeferrableCashCompensation

Annualretainersarepaidsemiannuallyandproratedforanydirector’spartialserviceduringtheyear.Our non-employeedirectorsmayelecttoreceivethiscompensationin(i)cash,eitherpaiddirectlyordeferredintoanaccount underourDirectorsVariableDeferredCompensationProgram(DVDCP),whichaccruesearningsattherateofreturnof certainbondandequityinvestmentfundsmanagedbyathirdparty;(ii)DSUscreditedtoanindividualaccountpursuant toourDirectorsDeferredEquityCompensationProgram(DDECP);or(iii)acombinationofcashandDSUs.Fordirectors withaDDECPaccountbalance,dividendequivalents,representingthevalueofdividendspaidonsharesofourcommon stockcalculatedbasedonthenumberofDSUsheldasofadividendrecorddate,arereinvestedontheapplicablepayable dateintheformofadditionalDSUs.In2024,noneofournon-employeedirectorsparticipatedintheDVDCPandfourof themparticipatedintheDDECP.

WhenaparticipantintheDDECPceasesservingasadirector,thedollarvalueoftheDSUsinhisorheraccountis dividedbytheclosingpriceofourcommonstockonthedateofthedirector’sseparation,withtheresultingnumberof sharesofourcommonstock,lessfractionalshares,issuedtothedirector.Inconnectionwiththeirdeparturesfromour BoardinApril,NovemberandDecember2024,Ms.Stewart,Mr.HicksandMs.Sullivanwereissued43,365,15,512and 14,470sharesofourcommonstock,respectively,basedontheirseparationdateDDECPaccountbalance.

CharitableMatch

Wematchupto$10,000peryearofeachnon-employeedirector’sdocumentedcontributionstocharitable organizationsoreducationalinstitutions.

BradleyA.Alford

WardH.Dickson

KenC.Hicks(2)

AndresA.Lopez

MariaFernandaMejia

FrancescaReverberi

PatrickT.Siewert

$115,000$182,043$10,000$307,043

$137,500$167,030–$304,530

$70,000$182,043$10,000$262,043

$115,000$182,043–$297,043

$131,667$209,859$10,000$351,526

$115,000$182,043–$297,043

$160,000$182,043$5,000$347,043

JuliaA.Stewart(2) ––$10,000$10,000

MarthaN.Sullivan(2)

WilliamR.Wagner

$79,584$182,043$10,000$271,627

$140,000$182,043$10,000$332,043

(1) Messrs.ButierandStanderarenotincludedinthetablebecausetheyservedasExecutiveChairmanandCEOofourcompany,respectively,in2024andreceived noadditionalcompensationtoserveonourBoard.

(2) Amountsrepresentretainersearnedasshowninthetablebelow,proratedfortheapplicablemonthsofservice.Sincefeesarepaidsemiannuallyforthenewterm towhichadirectoriselected,Ms.Stewartreceivednofeesduringtheyearasshedidnotstandforreelectionatthe2024AnnualMeeting.Messrs.Alfordand Lopezhad,foroneormoreyearsduringtheirservice,deferredcompensationthroughtheDDECP,with23,319and1,841DSUs,respectively,intheiraccounts onthelastdayofour2024fiscalyear.FollowingtheirdeparturefromourBoardinApril,NovemberandDecember2024,Ms.Stewart,Mr.HicksandMs.Sullivan wereissued43,365,15,512and14,470sharesofourcommonstock,respectively,reflectingtheirseparationdateDDECPaccountbalance.

DirectorBoardLeadershipRolesBoardRetainerCommitteeChairRetainerLeadDirectorRetainer Alford$115,000––DicksonAuditCommitteeChair$105,417$32,083–HicksFormerCompensationCommitteeChair$57,500$12,500–Lopez$115,000––Mejia$131,667––Reverberi$115,000––SiewertLeadIndependentDirector$115,000–$45,000 SullivanFormerAuditCommitteeChair$76,667$2,917–WagnerGovernanceCommitteeChair$115,000$25,000–

(3) AmountsreflectthegrantdatefairvaluesofRSUsinaccordancewithAccountingStandardsCodificationTopic718, Compensation,StockCompensation (ASC 718).Fairvaluesweredeterminedbasedonthefairmarketvalueofourcommonstockontherespectivegrantdate,adjustedforforegonedividends.Each non-employeedirectorservingatyear-end2024held844unvestedRSUs,exceptthatMs.MejiaandMr.Dicksonheld976and753unvestedRSUs,respectively.

(4) Amountsreflectourmatchofdocumentedcontributionsmadetocharitableorganizationsoreducationalinstitutions.

PROPOSAL2—ADVISORYVOTETOAPPROVEEXECUTIVECOMPENSATION

Afterconsideringthepreliminaryvotingresultsofthemostrecentadvisoryvoteonthefrequencyofsay-on-pay votesin2023,ourBoarddeterminedtocontinueholdingsay-on-payvotesannually.Theadvisoryvoteisavoteto approvethecompensationofourNEOsasdescribedinthe CompensationDiscussionandAnalysis and Executive CompensationTables sectionsofthisproxystatement.Itisnotavoteonourgeneralcompensationpoliciesorany specificelementofcompensation,thecompensationofournon-employeedirectors,ourCEOpayratioorpayvs. performancedisclosures,orthefeaturesofourcompensationprogramthatmitigateexcessiverisk-taking.

TheresultsoftheadvisoryvotearenotbindingonourBoard.However,wewilldisclosetheCompensation Committee’sconsiderationofthevoteresultsinthe CompensationDiscussionandAnalysis sectionofour2026proxy statement.

BoardRecommendation

Wearecommittedtomaintainingongoingengagementwithourinvestorstodiscussthealignmentofourexecutive compensationprogramwithourstrategiesandtheincentivesitprovidesourleaderstodeliverstrongfinancial performance,creatingsuperiorlong-term,sustainablevalueforourstockholders.

OurBoardrecommendsthatyouvoteFORapproval,onanadvisorybasis,ofthe compensationofourNEOsasdescribedinthe CompensationDiscussionandAnalysis and ExecutiveCompensationTables sectionsofthisproxystatement.

Properlydatedandsignedproxieswillbesovotedunlessyouspecifyotherwise.

COMPENSATIONDISCUSSIONANDANALYSIS(CD&A)

ThisCD&A*describesourexecutivecompensationprogramandthedecisionsoftheCompensationCommittee (referredtointhisCD&Aasthe“Committee”)regarding2024executivecompensation.Itincludesthesectionsshown below.

Ourstrategicpillarsand2024achievementsaredescribedintheproxysummary. Wehaveconsistentlyexecuted ourbusinessstrategies,deliveringlong-term,sustainablevalueforourstockholders. Webelievethatthisvalueisbest measuredbyourTSRandcumulativeEVA,bothofwhichareperformanceobjectivesusedinourLTIprogramandinform howwesetourgoalsforsalesgrowth,operatingmarginimprovement,assetefficiency,ROTCandcapitalallocation.Our overridingfocusremainsonensuringthelong-termsuccessofourstakeholdersandwehaveaclearsetofstrategiesto deliverforthem.

ProgressTowardLong-TermFinancialTargets

InMarch2021,weannouncedfinancialtargetsthrough2025,makingsignificantprogresstowardtheirachievement in2024. Ourperformanceduringthefirstfouryearsofthisperiodreflectsthestrengthanddurabilityofourportfolio, theresilienceofourmarketpositions,ouragileandtalentedglobalteam,andtheconsistentexecutionofour strategies,whichtogetherenableustodeliverstrongresultsandcompoundearningsinvariousscenariosacross cycles.

*ThisCD&Acontains“forward-lookingstatements”withinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Theseforward-lookingstatementsare subjecttocertainrisksanduncertainties,whichcouldcauseactualresultstodiffermateriallyfromtheexpectedresults,performanceorachievementsexpressedor impliedthereby.Foradetaileddiscussionoftheserisks,seePartI,Item1a,“RiskFactors”andPartII,Item7,“Management’sDiscussionandAnalysisofFinancial ConditionandResultsofOperations,”inour2024AnnualReport.StatementscontainedinthisCD&Aregardingourcompanyandbusinessperformancetargetsand goalsshouldnotbeinterpretedasmanagement’sexpectations,estimatesoffutureresultsorotherguidance.

50 2025ProxyStatement | AveryDennisonCorporation

In2021-2024,onafour-yearcompoundannualbasis(with2020asthebaseperiod),GAAPreportednetsales, operatingincome,netincomeandEPSincreasedby5.9%,6.6%,6.1%and7.2%,respectively.GAAPreportedoperating marginin2024was11.9%.Ournon-GAAPtargetsandresultsareshownbelow.

2021-2025TARGETS2021-2024RESULTS

SalesChangeEx.Currency(1)(2) 5%+7.0%

AdjustedEBITDAGrowth(1)(2)(3) 6.5%7.6%

AdjustedEBITDAMargin(1) 16%+in202516.4%in2024

AdjustedEPSGrowth(1)(2) 10%7.4%

ROTC(1) 18%+15.8%in2024

(1) Resultsfornon-GAAPmeasuresarereconciledfromGAAPinAppendixAofthisproxystatement.

(2) Percentagesfortargetsandresultsreflectfive-andfour-yearcompoundannualgrowthrates,respectively, with2020asthebaseperiod.

(3) AlthoughadjustedEBITDAgrowthwasnotoneofouroriginaltargets,itwasimpliedbythesaleschange ex.currencyandadjustedEBITDAmargintargets.TheforeigncurrencytranslationimpacttoEBITDAwasa benefitofapproximately$38millionin2021andaheadwindofapproximately$81million,$20millionand $7millionin2022,2023and2024,respectively.

Ourfinancialtargetsthrough2028focusoncontinuingtodelivervaluecreationusingthelong-termfinancial frameworkweannouncedinSeptember2024,whichreflectsouroverridingobjectivetodeliverGDP+growth,margin expansionandtop-quartilereturnsoncapital.

2024-2028TARGETS

SalesChangeEx.Currency(1) 5%+

AdjustedEBITDAMargin17%+in2028

AdjustedEPSGrowth(1) 10% ROTCTopQuartile(2)

(1) Percentagesreflectfive-yearcompoundannualgrowthrates,with2023asthebaseperiod.

(2) Relativetopeergroupfor2024-2026PUslistedonpage71ofthisproxystatement.

2024FinancialPerformance

Althoughalowerdemandenvironmentdrivenprimarilybysignificantinventorydestockingdownstreamfromour companyledtoachallenging2023,weprogressedindeliveringonourstrategicandfinancialgoalsin2024. Our MaterialsandSolutionsbusinessesbothachievedstrongtop-andbottom-lineresults,withourbasebusinesses recoveringfromtheimpactofprior-yeardestocking,stronggrowthinhigh-valuecategoriesandsignificant productivity-drivenmarginexpansion.Keyfinancialresultsfortheyearareshownbelow;thenon-GAAPfinancial measuresusedhereinaredefined,qualifiedandreconciledfromGAAPinAppendixAofthisproxystatement.

2024FINANCIALRESULTS

Net Sales

Reported EPS NetCashProvidedby OperatingActivities

Net Income

$8.8B$8.73$938.8M$704.9M

Netsalesincreasedby4.7% from$8.4billionin2023,driven bystrongvolumegrowth, partiallyoffsetbydeflationrelatedpricereductions;sales ex.currencyincreasedby5.1%

ReportedEPSincreasedfrom$6.20 in2023;adjustedEPSincreased 19.4%from$7.90to$9.43,athigh endoforiginalguidance,reflecting volumerecoveryinbaselabeland apparelbusinesses,stronggrowth inhigh-valuecategories,and improvedproductivity

Weusedadjustedfreecash flowof$699.5milliontopay $277.5millionofdividends, repurchase$247.5millionin sharesofourcommonstockand makethreeventureinvestments

DeliveredROTCof15.8%

EffectiveCapitalAllocation

Weinvestinourbusinessestosupportorganicgrowthandseektoacquirecompaniesthatcanexpandour capabilitiesinhigh-valueproductcategories,increaseourpaceofinnovationandadvanceoursustainabilitypriorities Ourfixedandinformationtechnologycapitalspendingin2024of$239.8millionwas16%lowerthanin2023,reflecting continuedinvestmentinourbusinesseswithconsiderationtothemoreuncertainmacroeconomicandgeopolitical environmentandourothercapitalallocationpriorities.Duringtheyear,wealsomadeventureinvestmentsinthree companiesdevelopingtechnologicalsolutionsthatwebelievehavethepotentialtoadvanceourstrategies.

In2024,wepaid$277.5millionindividendsof$3.45pershareandrepurchased1.2millionsharesofourcommon stock,havingstrategicallyacceleratedrepurchasesinthefourthquarter. Weraisedourquarterlydividendrateby9%in April2024.

Asshownbelow, overthelastfiveyears,wehavedeployedmorethan$2billiontoacquisitions(includingventure investments)andreturnedmorethan$2billiontostockholdersindividendsandsharerepurchases

TSRPerformance

OurTSRin2024waslowerthantheTSRoftheDowJonesU.S.Container&PackagingIndex,theS&P500 IndustrialsIndexandtheS&P500Index,threeindicesweusetodiscloseourrelativeperformance.Webelievethatour five-yearTSRisamoremeaningfulmeasurethanourone-yearTSR,consistentwiththetimehorizonofourfinancial targetsandgoaltodeliverlong-termvalueforourinvestors.Whilelowerthantwooftheseindices,ourfive-yearTSR outperformedtheDowJonesU.S.Container&PackagingIndex,asshownbelow.

5-YEARCUMULATIVETSR

1-,3-AND5-YEARTSR

AVY DowJones U.S.Container& PackagingIndex S&P500 Industrials Index S&P 500 Index 202021%21%11%18%

CAPITAL ALLOCATION HIGHLIGHTS

2024Say-on-PayVoteandFeedbackDuringStockholderEngagement

Atthe2024AnnualMeeting,94%ofourstockholdersapprovedourexecutivecompensation.Thelevelofsupportwe receivedwasrelativelyconsistentwiththehighapprovalrateswereceivedinrecentyears. TheCommitteebelievesthat ourstrongsay-on-payvoteresults,aswellasthefeedbackrelatedtoexecutivecompensationwehavereceived duringourengagementswithinvestors,demonstrateoverallsupportofourprogram.

TheCommitteemakeschangestoourexecutivecompensationprogramasappropriatetoensureitalignswithour evolvingfinancialprofileandbusinessstrategiesoraddressfeedbackfromourinvestors.Webelievethatitsannual reviewofourAIPandLTIprogramsandtheactionstakenovertimereflecttheCommittee’scommitmenttopayingfor performanceandbeingresponsivetoinvestorfeedback.

2024NEOs

InthisCD&Aandthe ExecutiveCompensationTables sectionofthisproxystatement,weprovideinformation regardingour2024NEOsshownbelow.InthisCD&A,Messrs.Stander,Allouche,LovinsandButierarereferredtoas CorporateNEOsandMessrs.MeloandYostarereferredtoasBusinessNEOs.

OurexecutivecompensationprogramreflectstheCommittee’sphilosophythatthesubstantialmajorityof compensationshouldbetiedtooursuccessincreatingstockholdervalue,providinghigherrealizedcompensationwhen wedeliversuperior,sustainedperformance.Theobjectivesofthisstrategyaretomotivateourexecutivestoachieveour annualandlong-termfinancialgoals.

TheCommitteeimplementsitspay-for-performancephilosophyasfollows:

•EstablishingtargetTDCtoincentstrongoperationalandfinancialperformanceandstockholdervaluecreation, givingconsiderationtomedianpayatsimilar-sizecompanies,roleresponsibilities,experience,performance, retentionandsuccession

•Aligningannualincentiveswithourbusinessand/orcompanyfinancialgoalsfortheyear

•Rewardinglong-termperformanceusingabsoluteandrelativeTSR,aswellascumulativeEVA,toincent deliveryofstockholdervaluecreation

ThesubstantialmajorityoftargetTDCforNEOsisgenerallyperformance-based,meaningthattheyultimately maynotrealizethevalueofat-riskcomponentsifwefailtoachievethedesignatedperformanceobjectives. Incentive compensationconsistsoftargetawardopportunitiesunderourAIPandLTIcompensationprogram,withpayouts determinedbasedonourperformanceagainstthethreshold,targetandmaximumlevelsestablishedbytheCommittee. Themixandelementsof2024targetTDCforNEOsotherthanourExecutiveChairmanareshownbelow.

NEOTARGETTDCMIXANDELEMENTS*

PUs

Long-TermIncentiveCompensation

CorporateNEOsBusinessNEOs

• 50%ofLTIwithpayout= 0%to200%oftargetaward

• 3-yearperformanceperiod -CompanyEVA(50%) -CompanyRelativeTSR(50%)

MSUs

BaseSalary

• 50%ofLTIwithpayout= 0%to200%oftargetaward

• 3-yearperformanceperiod -BusinessEVA(75%) -CompanyRelativeTSR(25%)

•RelativeTSRpayoutcappedat100%ifabsoluteTSRisnegative

•50%ofLTIwithpayout=0%to200%oftargetaward

•1-,2-,3-and4-yearperformanceperiods -100%CompanyAbsoluteTSR

AnnualIncentiveCompensation

CorporateNEOsBusinessNEOs

• Drivesperformancetodeliverannualcompany/businessfinancialgoals

• Individualperformancemodifierbasedonachievementofstrategicobjectives(generally cappedat100%forNEOs)

• Annualfixed-cashcompensationgenerallysetaroundmarketmedian

*ExcludesMr.Butierwhosetarget2024TDCasExecutiveChairmanwassubstantiallydifferentthanthatofourotherNEOsbecausehewasnotaparticipantinthe 2024AIPandhis2024LTIawardwasdeliveredintheformoftime-basedRSUsratherthanperformance-basedPUsandMSUs.

54 2025ProxyStatement | AveryDennisonCorporation

PayforPerformance

Inthegraphbelow,CEOcompensationreflectsMr.Stander’sSummaryCompensationTablecompensationfor2023 and2024andsuchcompensationofourformerCEO,Mr.Butier,for2020through2022,aswellasour2020-2024TSR of55%.ChangesinCEOpayhavegenerallycorrelatedwithchangesinTSR,exceptintheyearofourCEOtransition, whenCEOpaywassubstantiallylowerthanintheprioryearbecauseMr.Stander’s2023compensationprimarily reflectedhiscompensationasCOO,andin2024,whenCEOpaywassubstantiallyhigherthanintheprioryearbecauseit reflectedMr.Stander’sfirstfullyearasCEO.

TheCommitteehasdeterminedthatourexecutivecompensationprogramalsorewardsprogresstoward achievementofoursustainabilitygoals.TheCommitteeconsidersourNEOs’environmentalandsocialsustainabilityrelatedachievementsinitsdiscussionoftheirannualperformanceanddeterminationoftheirAIPindividualmodifiers.

StrongCompensationGovernancePractices

Ourexecutivecompensationprogramincorporatesthebestpracticesshownbelow,whichtheCommitteebelieves ensurethatitservesthelong-terminterestsofourstockholders.

PAYFORPERFORMANCE

CompensationPrimarily Performance-Based

CappedAnnualIncentive Consistentwith AnnualFinancialGoals

MajorityLong-TermEquity IncentiveCompensation

StrategicTargeting

✓ 88%ofCEO’sannualizedtargetTDCand71%ofaverage2024targetTDCofotherNEOs(excluding Mr.Butier)

✓ AIPawardforparticipatingNEOsbasedonachievingadjustedEPSatorabovemidpointofannual guidanceandotherperformanceobjectivesconsistentwithannualfinancialgoals,subjecttolimited upwardandunlimiteddownwarddiscretionbasedonCommittee’sassessmentofperformanceofCEO againstpredeterminedstrategicobjectivesandotherNEOs’individualcontributions;awardscappedat 200%oftarget

✓ LTIawardsforNEOs(excludingMr.Butier)prioritizelonger-termstockholdervaluecreation,withPUs cliff-vestingatendof3-yearperiodandMSUsvestingover1-,2-,3-and4-yearperformanceperiods

✓ TargetTDC(basesalary+targetAIPopportunity+targetLTIopportunity)settoincentstrong performanceandvaluecreation,givingconsiderationtopayatsimilar-sizecompanies,role responsibilities,experience,performance,retentionandsuccession

NoEmploymentContracts

RigorousStock OwnershipPolicy

NoHedgingorPledging

LimitedTradingWindows

BelowMedianBurnRate

CompensationClawback

NoExciseTaxGrossUps

DoubleTrigger EquityVesting

LimitedPerquisites

IndependentOversight

ExpertCompensation Consultant

COMPENSATIONBESTPRACTICES

✓ NEOsemployedwithoutcontractunlessrequiredbylawsormarketpracticesofhomecountry

✓ CEOrequiredtomaintainownershipof6xhisbasesalaryandowned2xthisrequirementatYE2024; ExecutiveChairman,Level2NEOsandLevel3NEOrequiredtomaintainownershipof6x,3xand2x ofbasesalary,respectively

✓ Insidertradingpolicyprohibitsofficersfromengaginginshortsale,option,hedgingandpledging transactionsinourcommonstockandallNEOscompliedduring2024

✓ NEOsmayonlytransactincompanystockduringapprovedtradingwindowsaftersatisfying preclearancerequirements,includingcertifyingcontinuedcompliancewithourstockownershippolicy

✓ Three-yearaverageburnrateof0.45%atYE2024,between25th and50th percentilesofS&P500 companies

✓ Clawbackpolicyrequiresrecoupmentofcertainincentive-basedcompensationtoexecutiveofficersif wearerequiredtoprepareaccountingrestatementtocorrectmaterialnoncompliancewithany financialreportingrequirement;inaddition,allAIPandLTIrecipientsaresubjecttocompensation clawbackinconnectionwithfinancialrestatementindicatingfraudormisconduct

✓ Nogross-uppaymentsforexcisetaxesforterminationfollowingchangeofcontrol

✓ EquityawardsnotaccelerateduponchangeofcontrolunlessNEOterminatedwithoutcauseorNEO terminatesemploymentforgoodreasonwithin24monthsofchangeofcontrol

✓ OtherthancappedfinancialplanningreimbursementonlyforCEOandLevel2NEOsandpaymentforannual physicalexaminations,certainNEOsreceiveflattaxableexecutivebenefitallowancenotsubjecttotaxgross-up

STRONGGOVERNANCE

✓ Committeecomprisingindependentdirectorswithexecutivecompensationdecisions

✓ WTWprovidesCommitteewithexpertexecutivecompensationadvice

SUMMARYOF2024COMPENSATIONDECISIONS

TheCommitteeapprovesexecutivecompensationtopayforperformance,withthetargetTDCofNEOsestablished toincentstrongfinancialperformanceandstockholdervaluecreation.Compensationisgenerallybasedpredominantlyon performance,meaningthatourexecutivesmaynotultimatelyrealizesomeoralloftheat-riskcomponentsifwefailto achieveourfinancialobjectives.

Indetermining2024NEOcompensation,theCommitteeconsideredthefactorsdescribedbelow.

• AnnualCompanyPerformance –ForCorporateNEOsparticipatingintheAIP,ourcompany’s2024adjusted salesgrowth,adjustedEPSandadjustedfreecashflow;forBusinessNEOs,primarilytheadjustednetincome, adjustedfreecashflowandadjustedsalesgrowthoftheirrespectivebusinessandsecondarilyadjustedEPS

• StockholderReturns –OurTSRonanabsolutebasis,aswellasrelativetoadesignatedgroupofpeer companies,andcompany/businesscumulativeEVA

• IndividualPerformance –OurCEO’sperformanceagainstthepredeterminedstrategicobjectivesestablishedfor himatthebeginningoftheyearandthecontributionsofourotherNEOs

• MarketCompetitiveness –Paypracticesandcompanyperformancerelativetothemarket

• InvestorFeedback –Theresultsofour2024say-on-payvoteandanyfeedbackonexecutivecompensation receivedduringourstockholderengagementprogram

Thekeydecisionsimpacting2024NEOtargetTDCareshownbelow. Whileweprovideconsistent,marketcompetitivetargetTDCopportunitiesforourNEOs,theactualcompensationtheyrealizeeachyearvariesbased primarilyonourfinancialperformance.

2024EXECUTIVECOMPENSATIONSUMMARY

ComponentDecisionsImpacting2024Compensation BASESALARY

12%ofCEOTDC;

Avg.29%ofOtherNEO TDC(excl.Butier)

AIPAWARD

16%ofCEOTDC; Avg.18%ofOtherNEO TDC(excl.Butier)

LTIAWARDS

72%ofCEOTDC; Avg.53%ofOtherNEO TDC(excl.Butier)

ThebasesalariesofMessrs.StanderandButierdidnotchange.InApril,(i)Mr.Meloreceivedabasesalary increaseof4%consistentwiththeaveragemeritincreaseforallemployeesand(ii)Messrs.Alloucheand Lovinsreceivedbasesalaryincreasesof5%and8%,respectively,tomorecloselyalignwithmarketdata forsimilarroles.Mr.Yost’sbasesalaryincreasedby31%whenhewaspromotedtoMaterialsPresidentin March.

Mr.Butierwasnotaparticipantinthe2024AIP.Mr.Yost’stargetAIPopportunityincreasedfrom 40%ofbasesalaryto60%ofbasesalaryinconnectionwithhispromotiontoMaterialsPresident. TherewerenootherchangestoNEOtargetAIPawardopportunitiesin2024.

Companyand/orbusinessperformanceresultedinfinancialmodifiersof132%forparticipatingCorporate NEOs,44%forMr.Meloand150%forMr.Yost.IndividualmodifiersforallNEOswere100%.Mr.Lovins’ 2024AIPawardwasproratedat83%duetohismedicalleave,whichbeganinNovember2024.

AnnualLTIAwardsGrantedin2024

•TheCommitteeincreasedMr.Stander’stargetLTIopportunityfrom550%ofbasesalaryto600% ofbasesalary,positioninghistargetTDCatthe40th percentileofmarketdataatcompanieswith annualrevenuesof$10billion,whichwasmodestlybelowthemediangiventhatitwouldbehis firstfullyearasCEO.TheCommitteedecreasedMr.Butier’stargetLTIopportunityfrom700%of basesalaryto500%ofbasesalary,positioninghistargetTDCatthe60th percentileofmarket dataatcompanieswithannualrevenuesof$10billion,whichwasmodestlyabovethemedianin acknowledgmentofhiseffectivetransitionfromCEOtoExecutiveChairmanandstrong performanceintherole.InconnectionwithhispromotiontoMaterialsPresident,Mr.Yost’starget LTIopportunityincreasedfrom65%ofbasesalaryto180%ofbasesalary.Therewerenoother changestoNEOtargetLTIopportunitiesin2024.

•Mr.Butier’sLTIawardwasintheformofRSUsthatcliff-vestonthefirstanniversaryofthegrant date,consistentwiththeone-yearvestingofRSUsawardedannuallytoournon-employee directors.

•ForallotherNEOs,LTIawardswerefullyperformance-basedanddeliveredwiththefollowing vehicles,performanceobjectivesandvesting:

•50%inPUsthatcliff-vestattheendofthree-yearperiodwithpayoutsrangingfromzeroto 200%basedontheachievementoftherespectivecumulativeEVAandrelativeTSR performanceobjectives.PayoutfortheTSRcomponentiscappedat100%oftargetforany performanceperiodinwhichabsoluteTSRisnegative.TherewerenochangestothePU performanceobjectivesorweightingsin2024.

•50%inMSUsthatvestbasedonabsoluteTSRover1-,2-,3-and4-yearperformanceperiods, withanaverageperformanceperiodof2.5years,basedonthefollowingperformancelevels andcriteria:(i)thresholdperformancelevel,whichresultsinpayoutof85%,isTSRof(15)%; (ii)targetperformancelevel,whichresultsinapayoutof100%,requiresTSRof10%;and (iii)maximumperformancelevel,whichresultsinpayoutof200%,requiresTSRof75%.There werenochangestoMSUperformancecriteriain2024.

SpecialLTIAwardsGrantedin2024

•InconnectionwithhispromotiontoMaterialsPresident,Mr.Yostwasgrantedspecialone-time LTIawardsof(i)RSUswithagrantdatefairvalueofapproximately$700,000thatcliff-veston thethirdanniversaryofthegrantdateand(ii)PUswithatargetgrantdatefairvalueof approximately$300,000withthesametermsandconditionsastheannualawardof2024-2026 PUstoparticipatingCorporateNEOs.

2024EXECUTIVECOMPENSATIONSUMMARY

ComponentDecisionsImpacting2024Compensation LTIAWARDS

LTIAwardsVestingatYE2024

•2022-2024PUs

•Our2022-2024TSRwasatthe56th percentilerelativetothedesignatedpeergroup,which was121%oftarget.However,becauseabsoluteTSRfortheperiodwasnegative,thepayout forthisperformanceobjectivewascappedat100%.

•CompanycumulativeEVAof$1,140millionwaslessthanthethresholdlevel,resultinginno payoutonthatperformanceobjectiveforCorporateNEOs.CumulativeEVAforwhatisnow Solutionswasalsolessthanthethresholdlevel,resultinginnopayoutonthatperformance objectiveforMessrs.MeloandYost,whosePUsweretiedtothatbusinessatthetimeofgrant.

•The2022-2024PUspaidoutat50%oftargetforCorporateNEOsand25%oftargetfor BusinessNEOs.

•MSUs

•4th TrancheofMSUsgrantedin2021 2021-2024AbsoluteTSRof28% Payoutof128%oftarget

•3rd TrancheofMSUsgrantedin2022 2022-2024AbsoluteTSRof(4%) Payoutof92%oftarget

•2nd TrancheofMSUsgrantedin2023 2023-2024AbsoluteTSRof4% Payoutof96%oftarget

•1st TrancheofMSUsgrantedin2024 2024AbsoluteTSRof(3%) Payoutof93%oftarget

WealsoprovideourNEOswithlimitedperquisitesandbenefitsthattheCommitteebelievesarecomparabletothose offeredbyothermultinationalpubliccompanies.

DISCUSSIONOF2024COMPENSATIONDECISIONS

TheCommitteeaimstohavebasesalariesatoraroundmedianpayatsimilar-sizecompanies,withthesubstantial majorityofcompensationgenerallyconsistingofincentivecompensationthatdelivershigherrealizedcompensation whenourfinancialperformanceisstrongerandlowerrealizedcompensationwhenourfinancialperformanceisweaker.

BaseSalaries

ChangestoNEObasesalariesapprovedbytheCommitteearedescribedinthe2024ExecutiveCompensation Summary.Changesinbasesalaryaregenerallybasedonperformanceandmarketcomparisonsforpositionswithsimilar scopeandresponsibility.

NEOBASESALARIES

NEOYE2024BaseSalary

Stander$1,100,000

Allouche(1)

$452,903

Lovins$806,250

Butier$1,000,000

Melo(1)

$517,539

Yost$525,000

(1) AmountsforMessrs.AlloucheandMelowereconvertedfrom Israelishekelsandeuros,respectively,usingtheaveragemonthly exchangeratesforDecember2024.

AIPAwards

The2024AIPwasdesignedtoincentmanagementtoachieveourfinancialgoalsfortheyear. ParticipatingNEOs arenoteligibleforguaranteedAIPawards. AIPawards,whicharecappedat200%,aredeterminedforeachfiscalyear usingtheformulabelow.IndividualmodifiersforparticipatingNEOsaregenerallycappedat100%,althoughthe Committeeretainsthediscretiontodeterminehigherindividualmodifierstorewardexceptionalperformance,uptothe capof150%forallAIPparticipants.

AsExecutiveChairman,Mr.Butierdidnotparticipateinthe2024AIP;hehasthereforebeenexcludedfromthe discussioninthis AIPAwards section.

TargetAIPOpportunities

ChangestoNEOtargetAIPopportunitiesapprovedbytheCommitteearedescribedinthe2024Executive CompensationSummary.

NEOTARGETAIPOPPORTUNITIES

AIPPerformanceObjectives;Target-SettingPrinciples

Theperformanceobjectivesandweightingsforthe2024AIPforparticipatingCorporateNEOs,whichwere consistentwiththeprioryear,wereestablishedbytheCommitteetocontinueincentingthemtogrowsales,deliver stockholdervaluethroughprofitablegrowth,andgeneratestrongcashflow.

2024CORPORATEAIPPERFORMANCEOBJECTIVES

AdjustedSalesGrowth (20%)

AdjustedEPS (60%)

AdjustedFreeCashFlow (20%)

Focusesmanagementontop-linegrowth,akeycontributortolong-termvalue creation

Primarydriverofstockholdervaluecreationandmeasureweusetoprovide annualguidance;focusesmanagementonprofitablegrowthandexpense control

Cashavailableafterinvestmentinourbusiness,whichwecandeployfor dividends,sharerepurchases,acquisitionsandventureinvestments;focuses managementonimprovingcapitalefficiency,includingworkingcapital

TheAIPperformanceobjectivesforBusinessNEOsweretiedprimarilytotheirrespectivebusiness’resultsbased 20%onadjustedsalesgrowth,45%onadjustednetincomeand20%onadjustedfreecashflow;theremaining15% wastiedtoadjustedEPS.Targetpayoutsweredesignedtobeachievableonlyiftheirrespectivebusinessimprovedupon its2023performanceandachievedits2024financialgoals.

Modifier (based on individual performance)

ThethresholdpayoutlevelfortheadjustedEPSperformanceobjectiveforparticipatingNEOswassetat0%.The thresholdpayoutlevelfortheothertwoperformanceobjectivesforparticipatingCorporateNEOswassetat50%.For BusinessNEOs,thethresholdpayoutlevelfortheadjustednetincomeperformanceobjectivewassetat0%andthe thresholdpayoutlevelfortheadjustedsalesgrowthandadjustedfreecashflowperformanceobjectiveswassetat50%. Forallperformanceobjectives,thetargetpayoutlevelwas100%andthemaximumpayoutlevelwas200%.Insetting 2024corporateAIPtargets,theCommitteeaimedtoensureconsistencywithour2021-2025financialtargets,giving considerationtothefactorsdescribedbelow.

•Targetadjustedsalesgrowth,reflectingsalesgrowthex.currencyexcludingtheimpactofacquisitions completedafterourlong-termtargetswereset,of4.1%($8,710M)waslessthanour2021-2025salesgrowth ex.currencytargetof5%+andsubstantiallyhigherthanour2023saleschangeex.currencyresult.Ourfinancial resultshadbeenlargelyimpactedbyourcustomersbuildingupinventorywhensupplychainswereconstrained in2021and2022andthepricingactionswetooktoaddresssignificantinflation,followedbydownstream inventorydestockingin2023.For2024,weexpectedthatvolumewouldgrowasindustryvolumesnormalized andthatwewouldpasssomeofthebenefitfromanticipateddeflationtoourcustomers.

•TargetadjustedEPSof$9.25wassetatthemidpointoftheannualguidanceweprovidedinJanuary2024and substantiallyhigherthanour2021-2025compoundannualgrowthtargetof10%and2023resultof$7.90.

•Althoughwedidnotexternallycommunicatea2021-2025adjustedfreecashflowtarget,ourplanfor2024was todeliveradjustedfreecashflowof$700millionand100%adjustedfreecashflowconversion,withsolidnet incomegrowthwhilemaintainingourworkingcapitalproductivitybenefits.Thetargetforadjustedfreecashflow was18.2%higherthanthe$592millionwedeliveredin2023.

2024CORPORATEAIPTARGETSVS.LONG-TERMTARGETSAND2023RESULTS 2021-2025Target2023Results2024AIPTarget

SalesGrowthEx.Currency5%+(6.9)%4.1%($8,710M)*

AdjustedEPSGrowth10%$7.90

$9.25 (17.1%above2023result)

AdjustedFreeCashFlowN/A$592M $700M (18.2%above2023result)

*RepresentsAIPtargetforadjustedsalesgrowth

FinancialModifiers

AIPfinancialmodifiersarecappedat200%. Indeterminingfinancialmodifiers,theCommitteehasthediscretionto excludetheimpact,positiveornegative,ofextraordinaryitemssuchasforeigncurrencytranslationfluctuations; acquisitionsanddivestitures;certainrestructuringandintegrationactions;changesinaccountingprinciples,taxcodesor relatedregulationsandrulings;extraordinaryeventssuchasnaturaldisasters,outbreaksofepidemiologicaldisease, terrorismandwar;theimpactfromearlyextinguishmentofdebtandpensionplanterminations;costsoflitigationoutside thenormalcourseofbusiness;andnon-cashchargesassociatedwiththeimpairmentoflong-livedassetssuchas goodwill.

Thetablebelowshowsthefinancialmodifiersforthe2024AIP. ForparticipatingCorporateNEOs,thetargetlevel ofperformancewasexceededforallthreeperformanceobjectives;forourSolutionsNEO,thethresholdlevelof performancefortheadjustedsalesgrowthandadjustednetincomeperformanceobjectiveswasnotachievedand thetargetlevelofperformancefortheadjustedfreecashflowandadjustedEPSperformanceobjectiveswas exceeded;and,forourMaterialsNEO,thetargetlevelofperformancewasexceededforallfourperformance objectives.

2024AIPFINANCIALMODIFIERS

Mr.Stander

Mr.Allouche

Mr.Lovins

AdjustedSalesGrowth(2) 20%$8,565M$8,710M$9,000M$8,874M157%31%

AdjustedEPS(3) 60%$8.35$9.25$10.00$9.35111%67%

AdjustedFreeCashFlow(4) 20%$630M$700M$780M$757M172%34%

ParticipatingCorporateNEOFinancialModifier 132%

Mr.Melo

SolutionsAdjustedSalesGrowth(2) 20%$2,782M$2,853M$2,996M$2,763M0%0%

SolutionsAdjustedNetIncome(5) 45%$206.4M$229.3M$252.3M$180.9M0%0%

SolutionsAdjustedFreeCashFlow(5) 20%$149M$179M$219M$193M135%27%

AdjustedEPS(3) 15%$8.35$9.25$10.00$9.35111%17%

SolutionsNEOFinancialModifier 44%

Mr.Yost MaterialsAdjustedSalesGrowth(2) 20%$5,687M$5,783M$5,976M$5,879M150%30%

MaterialsAdjustedNetIncome(5) 45%$548.1M$609.1M$670.0M$638.4M148%66%

MaterialsAdjustedFreeCashFlow(5) 20%$518M$553M$603M$596M186%37%

AdjustedEPS(3) 15%$8.35$9.25$10.00$9.35111%17% MaterialsNEOFinancialModifier

(1) AdjustedEPSandadjustednetincomethresholdssetat0%;thresholdsforallotherperformanceobjectivessetat50%.

(2) ForparticipatingCorporateNEOs,reflectsnetsalesof$8,755.7million,addingthe$118.7millionimpactofforeigncurrencytranslationsincethetargetwasset. ForSolutionsNEO,reflectsnetsalesof$2,742.7million,addingthe$20.4millionimpactofforeigncurrencytranslationsincethetargetwasset.ForMaterials NEO,reflectsnetsalesof$6,013.0million,excludingcertainitemsof$230.4millionandaddingthe$96.0millionimpactofforeigncurrencytranslationsincethe targetwasset.

(3) Reflectsadjustednetincomepercommonshare,assumingdilution,of$9.43,adjustedforotheritemsof($0.08).

(4) Reflectsnetcashprovidedbyoperatingactivitiesof$938.8million,minuspurchasesofproperty,plantandequipmentof$208.8millionandpurchasesof softwareandotherdeferredchargesof$31.0million,plusproceedsfromsalesofproperty,plantandequipmentof$0.6million,plusproceedsfrominsuranceand sales(purchases)ofinvestments,net,of$10.1million,lessnetofpurchasesofandproceedsfromsalesofArgentineBlueChipSwapsecuritiesof$10.2million, plusadjustmentforthenetcostoflegalsettlementsof$57.8million.

(5) Adjustednetincomeandadjustedfreecashflowatthebusinesslevelareinternalfinancialmeasuresthatexcludeormakesimplifyingassumptionsforitemsthat cannotbeallocatedpreciselybybusiness,suchasinterestandincometaxexpenses,andrelatedbalancesheetaccounts,suchasdeferredtaxassetsandliabilities, incometaxpayablesandreceivables,andshort-andlong-termdebt.Certainbalancesheetaccountssuchaspensionandotherpostretirementbenefitsand insurancethataregenerallymanagedatthecorporatelevel,aswellastheimpactofforeigncurrencytranslation,arealsoexcludedfromthecalculationofthese financialmeasuresforthebusinesses.Incertainlimitedcircumstances,one-timeitemsmaybeexcludedfrombusinessadjustednetincome.Theimpactof intercompanysalesisincludedinthesefinancialmeasures.

NEOPerformanceEvaluationsandIndividualModifiers

OurNEOsareevaluatedontheirindividualperformancefortheyear.TheCommitteeapprovedthestrategic objectivesofourCEO,andourCEOapprovedtheannualgoalsofotherNEOs.InFebruary2025,theCommittee evaluatedtheperformanceofourCEOagainsthispredeterminedstrategicobjectives;forourotherNEOs,this assessmentconsideredthetotalityoftheirperformance.

IndividualmodifiersforallAIPparticipantsarecappedat150%,subjecttothetotalcaponAIPawardsof200%.The CommitteehasdeterminedthattheindividualmodifiersforourNEOsshouldgenerallybecappedat100%.

TheCommitteeevaluatedthe2024performanceofourCEO,givingconsiderationtohisleadershipnavigatingthe challengingenvironment;ourfinancialresultsfortheyear;hisperformanceagainsthisstrategicobjectives establishedinFebruary2024;andhisself-assessmentdiscussedwiththeCommitteeinFebruary2025. The CommitteedeterminedtheindividualmodifierforourCEObasedonitsassessmentofhisperformance.

OurCEOhadthestrategicobjectivesfor2024shownbelowwiththeCommittee’sevaluationofhisperformance. Thesestrategicobjectivesdidnothaveassignedweightings,reflectingtheCommittee’sexpectationthathedeliveronall fronts.

2024CEOPERFORMANCEEVALUATION

StrategicObjectiveEvaluation

Driveoutsizedgrowthinhigh-valuecategories –Delivertargeted levelofgrowthinenterprisesalesofIntelligentLabels;achieve above-averageorganicgrowthrateinMaterials’graphicsand specialtylabelsbusinesses;delivertargetedorganicsalesgrowth inSolutions’externalembellishmentsbusiness,includingrealizing projectedbenefitsfrom2023acquisitions;andexecutesuccessful Solutions’shelf-edgelabelproductivitypilotwithlargeretailer

Growprofitablyinbasebusinesses –Maintainsharepositionsin basecategoriesinMaterials’NorthAmericaandEurope,Middle EastandNorthAfrica(EMENA)regionsandSolutions(adjustedfor IntelligentLabels),andaccelerategrowthofcircularandlow carbonproductsandsolutionsinMaterials

Leadatintersectionofphysicalanddigital –Deliverfoodsegment IntelligentLabels/digitalidentityprogramrolloutandgrowrevenue fromdigitalsolutionsatorabovetargetedlevel

Focusrelentlesslyonproductivity –Achievetargetedsavings fromrestructuringactionsanddeliveratleasttargetedamountof productivityacrossMaterialsandSolutions

Allocatecapitaleffectively –Investatleasttargetedamountin capitalexpenditures;maintainprior-yearoperatingworkingcapital productivity;investtargetedamountinacceleratedgrowth platformsofIntelligentLabels,innovationanddigitalinfrastructure; completeconstructionandopeningofnewstrategicSolutions’ facilityandachieveAveryDennisonSmartrac’soperatingworking capitalplan;andexpandM&Apipelineandcontinueintegrating 2023acquisitions

Leadinenvironmentallyandsociallyresponsiblemanner –Progressinnovationwithemphasisonenvironmentalsustainability anddigitalsolutions;progresscybersecuritystrategytoachieve 2024objectives;continuereducingScope1and2GHGemissions andexecuteScope3GHGemissionsreductionplan;andfurther enhanceleadershiprepresentation

Delivered9%organicgrowthinenterprise-wideIntelligent Labels,lessthantargetedamount;achievedabove-average organicgrowthinMaterials’graphicsandspecialtylabels businesses;significantlygrewsalesex.currencyinSolutions’ externalembellishmentsbusiness,withorganicgrowthbelow targetedlevel;andannouncedSolutions’shelf-edgelabel programwithlargeretaileraftersuccessfulpilot

MaintainedsharepositionsinMaterials’NorthAmericaand EMENAregionsandbaseSolutionscategories(adjustedfor IntelligentLabels)anddeliveredindustry-firstRecyClassand AssociationofPlasticRecyclerscertifiedlabelsolutionsforhighdensitypolyethylenerecycling

Signedfirstmajoritem-levelfoodRFIDprogram,commencing rollout,andsubstantiallygrewrevenuefromdigitalsolutions,but belowtargetedamount

Substantiallyexceededtargetedamountofsavingsfrom restructuringactionsanddeliveredtotalproductivitytarget acrossMaterialsandSolutions

Appropriatelyreducedcapitalexpenditurestoslightlybelow targetgivingconsiderationtomoreuncertainmacroeconomicand geopoliticalenvironmentandothercapitalallocationpriorities; strategicallyacceleratedsharerepurchasesinfourthquarter; maintainedprior-yearoperatingworkingcapitalproductivity; appropriatelyreducedspendingongrowthplatforminvestments, whilecontinuingtostrategicallyinvestinIntelligentLabels, innovationanddigitalinfrastructure;openedlargestRFID manufacturingfacilitybutdidnotachieveAveryDennison Smartrac’sannualoperatingworkingcapitaltarget;and integrated2023acquisitions

Progressedenvironmentalsustainabilityanddigitalsolutions innovationstrategy,includinglaunchingPureRFIDportfoliowith enhancedrecyclabilityconsistentwithEuropeanUnion regulations;improvedsecurityofmanufacturingoperations, increasedresilienceofkeytechnologyplatformsandadvanced initiativestoenhancecybersecurity;exceeded2025cumulative Scope1and2GHGemissionsgoalandadvancedScope3 reductionplan,includingtransitiontomaterials-based measurementmethodology;andenhancedleadership representation

Refine/Executeleadershipsuccession/development –Refine/ ExecutedevelopmentplansformembersofCompanyLeadership Team,withparticularfocusondevelopmentandtransitionsof MaterialsandSolutionsPresidents,andenhancedigitalleadership capability

Establishedandactioneddevelopmentplansforallmembersof CompanyLeadershipTeam;announcedappointmentofMaterials Presidentandexecutedtransitionplan;continuedmentorshipof SolutionsPresident;andstrengtheneddigitalleadership capability

TheCommitteeChair,togetherwithourLeadIndependentDirector,discussedwithourCEOthefeedbackfrom discussionsoftheCommitteeandourfullBoardregardinghis2024performance.

OurCEOrecommendedtotheCommitteetheindividualmodifiersforourotherNEOsbasedonhisassessmentof their2024performance.TheCommitteeconsideredourCEO’srecommendations,retainingthediscretiontoapprove individualmodifiersdifferentthanwhatourCEOhadrecommended.OtherthandiscussingwithourCEOtheirindividual performance,ourotherNEOsplayednoroleintheircompensationdeterminations.TheCommitteenotedthehighlightsof the2024performanceofourotherNEOsshownbelow.

Mr.Allouche

•Drove long-termstrategicplanning,buildingnextchapterofleadershipatintersectionofphysicalanddigital

•Servedas keyadvisortoCEO instrategicandfinancialmatters

•Conducteddeep-dive portfolioanalysis,expandedM&Apipeline andledadditionalventureinvestments

•Servedaskey thoughtpartnertoSolutionsandMaterialsleaders,supportingorganizationalandleadershipchanges, enhancingcross-businesscollaboration,andhelpingdevelopIntelligentLabelschannelstrategyandprogram

•Successfullytransitionedto InterimCFOroletoleadenterprisefinancefunction

•Deliveredfinancialresultsinexcessofannualoperatingplan

•Generated strongadjustedfreecashflow,withadjustedfreecashflowconversionofnearly100%

• Maintainedstrongbalance sheetand disciplinedcapitalallocation,strategicallyacceleratingsharerepurchasesin fourthquartertodeliverstrongreturns

•Advanced scenarioplanning toensureachievementoflong-termfinancialtargetsinuncertainmacroeconomicand geopoliticalenvironment

Mr.Lovins

•Led enterprisefinance function,includingcontrollership,tax,treasury,financialplanningandoperationalfinance

•Delivered strongadjustedfreecashflow of$700million,withadjustedfreecashflowconversionofnearly100%

•Ensured effectivecapitalallocation todeliverstrongreturnsandEVAgrowthoverlongterm

•Maintained strongbalancesheet whilereturning$525milliontoshareholdersthroughsharerepurchasesanda growingdividend

•Continueddriving strongglobalcontrollership

• Refinancedlong-termdebt and extendedrevolvingcreditfacility withfavorablefinancingterms

• Advancedscenarioplanning toensureachievementoflong-termfinancialtargets,employingenhancedmacroeconomic environmentanalyticsandforecastingprocesses

•Increased financesystemstandardization throughenterpriseresourceplanningsystemrolloutsacrossbusinesses

• Expandedsustainabilityreporting,earningabove-sectorratingsfromkeyratingagencies

•ServedasmemberofADFBoardofTrustees

Mr.Melo

•Delivered highsingle-digitsalesgrowth whileimprovingoverallmarginsinSolutions

• GrewIntelligentLabels byhighsingledigits,includingstrongreboundinapparel

•Continuedtoleadininnovationinitem-levelIntelligentLabelssolutions,including firstmajoritem-levelfoodRFID program withlargegrocerychain

•Evolved RFIDgo-to-marketapproach tobetterservecustomers,leveragingMaterials’relationshipswithlabel converters

•LaunchedVestcom’s centralizedcloud-basedstoreLinksolution, enablingretailerstostreamlineexecutionofin-store merchandisingstrategies

•Established EmbelexpartnershipwithNationalFootballLeague teamtoenhancefanengagementwithinnovative, smartheattransferembellishmentsandIntelligentLabelsembeddedinfanwear

•Launched OPTICA,firstfull-serviceportfolioofend-to-endsupplychainsolutions

•Further optimizedSolutionsmanufacturingnetworkandcost-to-serve,includingopeningourlargestRFID manufacturingsite

Mr.Yost

•Successfullytransitionedto MaterialsPresident,advancinglong-termstrategiesandimprovingcross-business collaboration

•Delivered mid-to-highsingle-digitgrowthinhigh-valuecategories,evolvingmulti-yearstrategiesacrosskey segmentsandplatformstodrivefuturegrowth

•Maintainedshareinbasebusinessbybalancingpricing,productivityandmixtodeliver strongoperatingmargins

• EvolvedMaterialsleadershipteam withdeepexpertiseinkeyfunctionalareasofinnovation,operations,procurement andstrategyandregionaloperatingmodeltodrivetargetedexecution

•ExpandedSustainableADvantageportfolio,includingmarket-firstRecyClasspressure-sensitivelabelsolutionforhighdensitypolyethyleneconsumergoodspackaging,to improverecyclingofwaste andhelpbrandscomplywith increasingrecyclabilityrequirements

BasedontheseassessmentsandaftergivingconsiderationtotherecommendationsofourCEO(otherthanwith respecttohimself),theCommitteeapprovedAIPindividualmodifiersof100%forallparticipatingNEOs.

AIPAwards

OurparticipatingNEOsreceivedtheAIPawardsfor2024shownbelow.

2024AIPAWARDS

YE2024 BaseSalary

Stander$1,100,000135%$1,485,000132%100%$1,960,200

Allouche(1)

Lovins(2)

Melo(1)

$452,90350%$226,452132%100%$298,916

$806,25075%$604,688132%100%$665,130

$517,53960%$310,52344%100%$136,630

Yost$525,00060%$315,000150%100%$472,500

(1) AmountsforMessrs.AlloucheandMelowereconvertedfromIsraelishekelsandeuros,respectively,usingtheaveragemonthlyexchangerates forDecember2024.

(2) Mr.Lovins’2024AIPawardwasproratedat83%duetohismedicalleave,whichbeganinNovember2024.

LTIAwards

OurLTIprogramprovidesvariableincentivecompensationtoenhancealignmentofexecutiveinterestswith stockholderinterestsanddrivelong-termvaluecreation.The 2024LTIawardsgrantedtoallNEOsotherthan Mr.Butierwerefullyperformancebased anddeliveredthroughtheequityvehiclesdescribedbelow.

•50%inPUsthatcliff-vestattheendofathree-yearperiodsubjecttotheachievementoftherespective cumulativeEVAandrelativeTSRperformanceobjectivesestablishedfortheaward

•50%inMSUsthatvestattheendofthe1-,2-,3-and4-yearperformanceperiods,withanaverageperformance periodof2.5years,basedonourabsoluteTSR

Amounts,ifany,realizedfromthevestingoftheseLTIawardswillbebasedonourperformanceandstockpriceat thetimeofvesting.TheCommitteedoesnotoffsetthelossorgainofprioryeargrantsindeterminingcurrentyeargrants, asdoingsowouldcompromisetheintendedrisk/rewardnatureoftheseincentives.

SpecialLTIawardsmaybegrantedbytheCommitteeforhiring,promotion,retentionandotherincentivepurposes, withtheawardsgrantedonthefirstdayofMarch,June,SeptemberorDecember.

TargetLTIOpportunity

ChangestoNEOtargetLTIawardopportunitiesapprovedbytheCommitteearedescribedinthe2024Executive CompensationSummary.

NEO2024TARGETLTIOPPORTUNITIES NEOLTIOpportunity

RestrictedStockUnits(RSUs)

Mr.Butier’s2024LTIawardwasintheformofRSUsthatcliff-vestonthefirstanniversaryofthegrantdate, consistentwiththeone-yearvestingofRSUsawardedannuallytoournon-employeedirectors.

PerformanceUnits(PUs)

PUscliff-vestinsharesofourcommonstockaftertheendofathree-yearperiodatthreshold(50%payout),target (100%payout)andmaximum(200%payout)levelsbasedonourachievementoftheperformanceobjectivesestablished fortheaward.PUsdonotaccruedividendequivalentsandarenotcountedforpurposesofourstockownershippolicy.

TheCommitteeestablishedthefollowingperformanceobjectivesforthe2024-2026PUs.TheCommitteebelieves thattheseobjectivesalignexecutivecompensationwiththelong-terminterestsofourstockholdersbecausedelivering cumulativeEVAandstrongTSRrelativetopeercompaniesreflectsthevaluewecreateforourinvestors.

• CumulativeEVA,weighted50%forparticipatingCorporateNEOs(basedoncompanyEVA)and75%for BusinessNEOs(basedonbusinessEVA). EVAiscalculatedbydeductingtheeconomiccostassociatedwiththe useofcapital(weightedaveragecostofcapitalmultipliedbyaverageinvestedcapital)fromafter-taxoperating profit,withthecostofcapitalfixedovertheperformanceperiod. ForcompanycumulativeEVA,thetarget payoutwasbasedonsalesgrowth,adjustedEBITDAgrowthandadjustedEBITDAmargininexcessofour goals,withthemaximumpayoutbasedonachievementofour2021-2025targetsgivingconsiderationtothe impactofinventorydestockingin2023. EVAtargetsforBusinessNEOsfocusedontherespectivebusiness EVAchangecomparedtothepriorthree-yearperiod.Whetherlinkedtocompanyorbusinessresults, achievementof2024-2026cumulativeEVAtargetsrequiressignificantimprovementinfinancialperformance.

• RelativeTSRcomparedtoanobjectivelydeterminedpeergroup,weighted50%forparticipatingCorporate NEOsand25%forBusinessNEOs. TheCommitteedesignedtheTSRobjectivetoproviderealized compensationonlyifourstockholdervaluecreationcomparesfavorablyrelativetothedesignatedpeergroup, thenamesofwhicharelistedunder PeerGroups laterinthisCD&A.TheCommitteesetthethresholdpayoutat TSRatthe40th percentile,targetpayoutatTSRatthe50th percentileandmaximumpayoutatTSRatthe 80th percentile,whichwerethesamelevelsusedforthe2023-2025PUs.PayoutsfortherelativeTSR componentofPUsarecappedat100%oftargetifourabsoluteTSRisnegative. Inassessingtherigorofthe TSRobjectives,theCommitteenotedthatperformingatthemedianrelativetopeersoverthe2024-2026 periodwouldrepresentsolidperformanceinlightofanticipatedheadwindsfromforeigncurrency fluctuations,theunknowntimingoflabelandapparelindustryrecovery,andtherolloutofnewIntelligent Labelsplatforms.

2024-2026PUs

NEOsPerformanceObjectivesWeighting

Market-leveragedStockUnits(MSUs)

MSUsareperformance-basedLTIawardstiedtoourabsoluteTSR.MSUsvestbasedontheperformanceperiods shownbelow,withthenumberofsharespaidoutatvestingbasedonourabsoluteTSRandthevaluerealizedreflecting boththenumberofsharespaidoutaswellasourstockprice.AlthoughdividendequivalentsaccrueonMSUsduringthe performanceperiod,theyareearnedandpaidonlyatvesting;ifthethresholdlevelofperformanceisnotachieved,any dividendequivalentsaccruedduringtheperformanceperiodarecancelledwiththetrancheofawardssubjecttovesting.

TheperformancecriteriaforMSUsareshownbelow.TheCommitteedeterminedtomaintainthesameMSU performanceobjectivesfor2024becausetheyareachievingtheCommittee’sgoalofincentingstrongperformanceand valuecreation.

MSUPERFORMANCEPERIODS

First25% 1-Year

Second25% 2-Year

Third25% 3-Year

Fourth25% 4-Year

AVERAGEPERFORMANCEPERIOD=2.5YEARS

AnnualLTIAwards

MSUPERFORMANCECRITERIA AbsoluteTSRUnitPayout

OurNEOsweregrantedtheannualLTIawardsshowninthetablebelowinMarch2024.Thenumberofawards grantedwasgenerallybasedontherespectiveNEO’s2023year-endbasesalaryandtargetLTIopportunity.

ThenumberofPUsgrantedfortheEVAcomponentwasbasedontheaverageclosingpriceforsharesofour commonstockduringthefirst10tradingdaysofFebruary2024;thenumbersofPUsgrantedfortherelativeTSR componentandMSUsgrantedwerebasedongrantdatefairvalueusingtheMonte-Carlosimulationmethoddescribedin footnote(2)ofthe 2024SummaryCompensationTable;andthenumberofRSUsgrantedwasdeterminedbasedonthe closingpriceofourcommonstockonthegrantdate,adjustedforforegonedividends.

2024ANNUALLTIAWARDS

YE2023 BaseSalary TargetLTI OpportunityPUs(#)PUs($)MSUs(#)MSUs($)RSUs(#)RSUs($)LTIValue Stander$1,100,000600%14,497$3,343,20112,705$3,300,154––$6,643,355 Allouche(1) $428,220120%1,129$260,360989$256,923––$517,283 Lovins$750,000250%4,119$949,9063,609$937,468––$1,887,374 Butier$1,000,000500%––––23,101$4,926,903$4,926,903 Melo(1) $518,219180%2,178$475,4101,796$466,511––$941,921 Yost(2) $525,000180%2,207$481,7431,819$472,577––$954,320

(1) BasesalariesofMessrs.AlloucheandMelowereconvertedfromIsraelishekelsandeuros,respectively,usingtheaveragemonthlyexchangeratesfor December2023. (2) Mr.Yost’sLTIawardwasbasedonhisbasesalaryonthegrantdateshowninthetableratherthanhisbasesalaryatyear-end2023.

SpecialLTIAwards

InconnectionwithhispromotiontoMaterialsPresident,Mr.Yostwasgrantedone-timespecialpromotionawardsof (i)PUswithagrantdatefairvalueofapproximately$300,000withthesametermsandconditionsasthe2024-2026 PUstoparticipatingCorporateNEOsand(ii)RSUswithagrantdatefairvalueofapproximately$700,000thatcliff-vest onthethirdanniversaryofthegrantdate.ThenumbersofPUsandRSUsgrantedtoMr.Yostweredeterminedusingthe samemethodsastheannualawardsdescribedabove.

2024SPECIALLTIAWARDS

PUs(#)PUs($)RSUs(#)RSUs($)LTIValue Yost1,318$303,9703,234$670,543$974,513

2022-2024PUs

TheannualawardofPUsgrantedtoourNEOsinFebruary2022forthethree-yearperformanceperiodendingin 2024wereeligibletovestbased(i)forourNEOsotherthanMessrs.MeloandYost,50%oncompanycumulativeEVA and50%onrelativeTSRcomparedtoapeergroupofcompaniesthenamesofwhicharelistedunder PeerGroups later inthisCD&A;and(ii)forMessrs.MeloandYostwhowereboththenleadersinwhatisnowSolutionsGroup,75%on SolutionscumulativeEVAand25%onrelativeTSR. Thekeygoal-settingprincipleinsettingcompanycumulativeEVA targetswasconsistencywithour2021-2025financialtargetsforearningsgrowthandROTC,whichtheCommittee believestranslatesintodeliveringabove-averageTSR.

ThecompanycumulativeEVAtargetof$1,425millionwasconsistentwithourlong-termfinancialgoalsfororganic salesgrowthandoperatingmarginexpansionandrecognizedthatincreasingsalesandoperatingmargin,togetherwith balancesheetefficiency,arekeydriversofEVAimprovement.OurcompanycumulativeEVAtargetwas27%higherthan thecumulativeEVAwedeliveredinthethree-yearperiodendingin2021.ThecompanycumulativeEVAof$1,545 millionrequiredformaximumpayoutrequiredachievementofour2021-2025financialtargets.Asshownbelow, we deliveredcompanycumulativeEVAof$1,140millionforthe2022-2024performanceperiod,notachievingthe $1,310millionthresholdlevelofperformanceandresultinginnopayoutforthatcomponentforCorporateNEOs.

2022-2024PUs:COMPANYCUMULATIVEEVA

Capitalcharge(3) (436.4)(445.0)(442.2) EVA$435.2$278.8$426.0$1,140.0

(1) AdjustedEBITisanon-GAAPfinancialmeasuredefinedandreconciledfromGAAPinAppendixAofthisproxystatement.

(2) GAAPtaxratesfor2022,2023and2024were24.2%,27.6%and26.1%,respectively.Taxesareshownbasedon adjustedtaxratesof24.7%,25.8%and25.9%for2022,2023and2024,respectively.Theadjustedtaxraterepresents thefull-yearGAAPtaxrate,adjustedtoexcludecertainunusualorinfrequenteventsthatsignificantlyimpactthatrate, suchaseffectsofcertaindiscretetaxplanningactions,impactsrelatedtoenactmentsofcomprehensivetaxlawchanges, andotheritems.

(3) 8.5%ofaverageinvestedcapitalof$5.13billionin2022,$5.23billionin2023and$5.20billionin2024,ineachcase usinganannualfive-pointaverage(DecemberofprioryearandMarch,June,SeptemberandDecemberofcurrentyear)of short-andlong-termdebtplusequity,adjustedtoexcludetheimpactofacquisitionscompletedsincethetargetwasset.

SolutionscumulativeEVAforthe2022-2024performanceperiodalsodidnotachievethethresholdlevelof performance,resultinginnopayoutonthatperformanceobjectiveforMessrs.MeloandYost.EVAtargetsandresultsat thebusinesslevelarenotdisclosedduetotheircompetitivelysensitivenature.

RelativeTSRforthe2022-2024performanceperiodwasatthe56th percentileofthedesignatedpeergroup, whichwas121%oftarget.However,becauseabsoluteTSRfortheperiodwasnegative,thepayoutwascappedat 100%. 2022-2024PUs:

PUsforthe2022-2024performanceperiodpaidoutat25%oftargetforMessrs.MeloandYostand50%of targetforallotherNEOs.

MSUsEligibleforVestingatYE2024

FourtranchesofMSUswereeligibleforvestingattheendof2024basedonourabsoluteTSRforthefour-,three-, two-andone-yearperformanceperiodsshownbelow,withthenumberofsharespaidoutatvestingdeterminedin accordancewiththeformulashownbelow.

Stockpriceatsettlement(avg.closing pricefortradingdaysofJanuary2025) + reinvesteddividendsduringperiod

Stockpriceatgrant(avg.closingpricefor tradingdaysofJanuaryofyearofgrant) = Payoutatvesting

4TH TRANCHEOFMSUsGRANTEDIN20213RD TRANCHEOFMSUsGRANTEDIN2022

Performanceperiodof4yearsPerformanceperiodof3years 2021-2024AbsoluteTSRof28%2022-2024AbsoluteTSRof(4)% Paidoutat128%oftargetPaidoutat92%oftarget

2ND TRANCHEOFMSUsGRANTEDIN20231ST TRANCHEOFMSUsGRANTEDIN2024

Performanceperiodof2yearsPerformanceperiodof1year 2023-2024AbsoluteTSRof4%2024AbsoluteTSRof(3)% Paidoutat96%oftargetPaidoutat93%oftarget

Perquisites

OurNEOsreceivetheperquisitesshowninthechartbelow.Wedonotreimbursethemforthetaxconsequencesof theirreceiptoftheseperquisites.

LIMITEDPERQUISITES

ExecutiveBenefitAllowance

FinancialPlanning

AnnualPhysicalExamination

GeneralBenefits

$70,000forCEO,$65,000forLovinsandYost,and €15,000forMelo;amountstaxablewithnogross-up

Annualreimbursementofupto$25,000forCEOand $15,000forLevel2NEOs;taxablewithnogross-up

Reducesexpenseofadministeringvarietyofseparate perquisites

Allowsmostseniorexecutivestofocusonjobduties

Paiddirectlytoserviceprovider;nottaxableHelpsensureleadersmaintaingoodoverallhealth

NonqualifiedDeferredCompensationBenefits

OurU.S.NEOsareeligibletoparticipateinournonqualifieddeferredcompensationplan,whichallowseligibleU.S. employeestodeferupto75%oftheirbasesalaryandupto90%oftheirAIPaward.Theplanprovidesparticipantswith along-termcapitalaccumulationopportunitybecausedeferredamountsaccumulateonapre-taxbasis.Participantsmay selectfromanumberofinvestmentoptions,withdeferrals100%vested. Ourdeferredcompensationplandoesnot offerabove-marketinterestrates.

Ourcompanymadeacontributioneffectiveasofthefirstbusinessdayof2024tothedeferredcompensation accountsofeligibleparticipantsfor(i)401(k)eligiblepayin2023inexcessoftheInternalRevenueCodeof1986,as amended(the“Code”)compensationlimitand(ii)theirrespectivedeferredcompensationdeferrals.Thisannual contribution,whichisdesignedtosupplement401(k)contributionsthatarelimitedundertheCode,providesan automaticcontributionof3%ofdeferredandeligiblepayandamatchingcontributionofupto50%ofthefirst7%of deferrableandeligiblepayabovetheCodecompensationlimit.

ForadditionalinformationregardingourdeferredcompensationplanandaccruedNEObenefitsthereunder,see 2024 NonqualifiedDeferredCompensation in ExecutiveCompensationTables

Pension/RetirementBenefits

SubjecttothesametermsandconditionsasourothereligibleU.S.employees,Messrs.ButierandLovinsareouronly NEOseligibleforpensionbenefitsunderourbenefitrestorationplan,anonqualifiedexcessbenefitplan.Becausethe accrualofbenefitsunderthebenefitrestorationplanwasfrozenasofyear-end2010,neitherofoureligibleNEOs accruedadditionalpensionbenefitsduring2024.Foradditionalinformationregardingthebenefitrestorationplanand accruedNEObenefitsthereunder,see 2024PensionBenefits in ExecutiveCompensationTables

Mr.Allouchehasnon-pensionretirementbenefitsundercertainfundsrequiredbyIsraelilaw.Companycontributions tothesefundsaredisclosedintheAllOtherCompensationcolumnofthe 2024SummaryCompensationTable.

DefinedContributionBenefits

OurU.S.NEOsareeligibletoparticipateinouremployeesavingsplan,aqualified401(k)planthatallowsU.S. employeestodeferupto100%oftheireligibleearningslesspayrolldeductionsonapre-taxbasisand25%oftheir eligibleearningsonanafter-taxbasis,subjecttotheannuallimitprescribedbytheInternalRevenueServiceforthe aggregateofcompanycontributionsandemployeepre-andpost-taxcontributions.Employeecontributionsare immediatelyvested.In2024,wecontributedupto6.5%ofanemployee’seligiblecompensation,3%ofwhichwasan automaticcontributionandupto3.5%ofwhichwasamatchingcontributionof50%oftheemployee’scontributionsup to7%ofpay,subjecttotheCodecompensationlimit.Participantsvestinourcompanycontributionsaftertwoyearsof service.

AllU.S.NEOsparticipatedinthesavingsplanin2024,subjecttothetermsandconditionsasourotherU.S. employees,andarefullyvested.

ExecutiveLifeInsuranceBenefits

Inadditiontothe$50,000inlifeinsurancebenefitsweprovidetoallU.S.employees,ourU.S.executivesareprovided withsupplementallifeinsurancebenefitsequaltothreetimestheirbasesalaryless$50,000,uptoamaximumcoverage amountof$1million.

ExecutiveLong-TermDisabilityInsuranceBenefits

Iftheyelecttoenrollinexecutivelong-termdisabilitycoverage,ourU.S.executiveshavelong-termdisabilitybenefits equalto65%oftheireligiblepre-disabilitymonthlyearningsuptoamaximumof$25,000permonth.Coverageis availableonlyfortheindividual;dependentsarenotcovered.

ExecutiveExcessLiabilityInsuranceBenefits

Weprovide$3millionofpersonalexcessliabilityinsurancecoveragetoourU.S.executives.Personalexcessliability coveragesupplementstheindividual’spersonalliabilityinsuranceprovidedthattheymaintaincertainminimumcoverage requirements.

CharitableMatchBenefits

Wematchupto$10,000ofourCEO’sandourExecutiveChairman’sand$5,000ofourotherNEOs’annual documentedcontributionstocharitableorganizationsoreducationalinstitutions.

TerminationBenefits

Consistentwithmarketpractices,theCommitteebelievesthatprovidingourexecutiveswithterminationbenefits helpsensurethattheyactinthebestinterestsofourcompanyandstockholders,evenifdoingsomaybecontrarytotheir personalinterests,suchaswhereitcouldleadtoachangeofcontrolofourcompany.

ThecompensationofourparticipatingNEOsintheeventofterminationnotforcauseisgovernedbyourAmended andRestatedExecutiveSeverancePlan(the“SeverancePlan”)and,asapplicable,ourAmendedandRestatedKey EmployeeChangeofControlSeverancePlan(the“COCSeverancePlan”).Weusetheseplansratherthanindividually negotiatedagreementstoallowustochangetheterminationbenefitsforwhichapplicableNEOsareeligibletoreflect marketpracticeswithouttheneedtoobtaintheirindividualconsent.Inaddition,thisplan-basedapproacheliminatesthe needtoindividuallynegotiatearrangementsandensuresthateligibleNEOsreceiveseveranceandotherbenefitsonthe sametermsandconditionsasemployeeswithsimilarlevelsofresponsibility.Receiptofbenefitsundertheseplansis conditionedontheexecutivesigningawaiverandgeneralreleaseofclaimsagainstourcompany,aswellasagreeingto certainrestrictivecovenantsinfavorofourcompany.Anyviolationofthesecovenantscouldresultinourcompany

seekingtorecoversomeorallseverancebenefitspreviouslypaidorpursuinganyotherclaimsthatmaybeappropriate underthecircumstances.Mr.ButierceasedbeingaparticipantintheSeverancePlanortheCOCSeverancePlanin September2023.

Unvestedequityawardsoutstandingonthedateofterminationaregenerallycancelled,exceptforemployeeswho qualifyasretirementeligibleunderthetermsofourequityincentiveplan,whoseawardsareacceleratedupontermination ofservice.Mr.StanderwastheonlyNEOwhoqualifiedasretirementeligibleatyear-end2024.

ForadditionalinformationregardingpotentialNEObenefitsundertheseplans,includingthetreatmentofequity awardsundervariousterminationscenarios,see PaymentsUponTerminationasofDecember28,2024 in Executive CompensationTables

BenefitsFollowingInvoluntaryTerminationNotforCause

OurparticipatingNEOsareeligibletoreceiveseveranceandotherbenefitsuponinvoluntaryterminationnotfor “cause,”inaccordancewiththetermsandconditionsoftheSeverancePlan. Intheeventofaqualifyingtermination,our CEOwouldreceiveseveranceoftwotimesthesumofhisannualsalaryandtargetAIPaward;ourothereligible NEOswouldreceiveseveranceofonetimetheirrespectivesumoftheseamounts. Inaddition,theywouldreceive non-severancebenefitsof(i)twotimesandonetime,respectively,ofthecashvalueof12monthsoftheirqualified medicalanddentalinsurancepremiumsand(ii)upto$25,000inoutplacementservicesforoneyearfollowing terminationofemployment.AnypaymentsmadeundertheSeverancePlanwouldbeoffsetbyanypaymentsreceivedby theNEOunderanystatutory,legislativeandregulatoryrequirementor,ifapplicable,theCOCSeverancePlan.

BenefitsFollowingChangeofControl

OnlyourCEOandLevel2NEOsareeligibletoreceiveenhancedseveranceandotherbenefitsuponterminationnot forcauseorbytheexecutiveforgoodreasonwithin24monthsofachangeofcontrolofourcompany,inaccordance withthetermsandconditionsoftheCOCSeverancePlan. Intheeventofaqualifyingterminationfollowingachange ofcontrol,ourCEOwouldreceiveseveranceof2.99times(reducedfrom3.00timeseffectiveJanuary31,2025)the sumofhisannualsalaryandtargetAIPaward;ourLevel2NEOswouldreceiveseveranceoftwotimestheir respectivesumoftheseamounts. Inaddition,theywouldreceivenon-severancebenefitsof(i)aproratedtargetAIP awardfortheyearoftermination,(ii)2.99(reducedfrom3.00timeseffectiveJanuary31,2025)andtwotimes, respectively,ofthecashvalueof12monthsoftheirqualifiedmedicalanddentalinsurancepremiumsand(iii)upto $25,000inoutplacementservicesforoneyearfollowingterminationofemployment.AnypaymentsundertheCOC SeverancePlanwouldbeoffsetbyanypaymentsreceivedbytheNEOundertheSeverancePlanandanyotherstatutory, legislativeandregulatoryrequirement.Intheeventofterminationfollowingachangeofcontrol,ourLevel3NEOwould beentitledtoreceivebenefitsundertheSeverancePlandescribedabove.

ParticipatingNEOsarenoteligibletoreceiveanyexcisetaxgross-uponamountspayableundertheCOCSeverance Plan.IftheNEOwouldotherwiseincurexcisetaxesunderSection4999oftheCode,paymentsundertheCOCSeverance Planwouldbereducedsothatnoexcisetaxeswouldbedueifthereductionresultsinagreaterafter-taxbenefittothe NEO.

Underourequityincentiveplan,unvestedawardswouldgenerallyvestifourNEOsareterminatedwithoutcauseor resignforgoodreasonwithin24monthsafterthechangeofcontrol.OutstandingPUsandMSUsvestbasedonactual performance,ifdeterminable,andotherwisebasedontargetperformance.

MarketData

TheCommitteeannuallyconsidersmarketsurveydataofbasesalary,incentivecompensationandtargetTDC, consideringcompaniesofsimilarsizebasedonannualrevenuesacrossallindustriestoreflectthebroadtalentmarket acrosswhichweseekourexecutives.TheCommitteereviewsresultsfromathird-partysurveytounderstandmarket compensationpracticesandassessourcompetitiveness,narrowingthescopeoftheresultstoaccountforvariations causedbycompanysize.TheCommitteereviewsthedataonanaggregatedbasis,withnoconsiderationofthesurvey’s componentcompanies,whicharenotdeterminedorknownbytheCommittee.

InFebruary2024,theCommitteeutilizedindustry-widedatafromthemostrecentWTWGeneralIndustryExecutive CompensationSurveyforcompanieswithannualrevenuesbetween$6billionand$10billion.Inaddition,recognizing ourcompany’sgrowthtrajectoryandtopquartileperformanceinrecentyears,theCommitteerequestedWTWto performregressionanalysistoprojectmarketratesforcorporaterolesatcompanieswithannualrevenuesof$10billion.

InassessingmarketcompetitivenesstodeterminetargetTDC,theCommitteebenchmarkedCEOandExecutive Chairmanagainsttheregressionanalysisdata;boththeindustry-wideandregressionanalysisdataforourother CorporateNEOs;industry-widedataforEuropean-basedleadersofbusinesseswithannualrevenuesbetween$665 millionand$4.75billionforMr.Melo;andindustry-widedataforU.S.-basedleadersofbusinesseswithannualrevenues ofupto$5billionforMr.Yost.

TallySheets

TheCommitteeannuallyreviewstallysheetsthatreflectthecomponentsofeachNEO’scompensation.Thetally sheetsreviewedinFebruary2025includedtheinformationshownbelowforeachofthemostrecentthreefiscalyears.

•Cashcompensation(basesalaryandAIPawards),LTIawards,valueofvestedLTIawards,andcostofbenefits andperquisites

•Valueofannualcompensation,includingbasesalary,AIPawardandgrantdatefairvalueofLTIawards

•Accumulatedvalueofcompensation,includingoutstandingLTIawardsandaccumulatedbenefitvaluesunder pensionanddeferredcompensationplans

•Potentialpaymentsundervariousterminationscenarios

•Compliancewithourstockownershippolicy

PeerGroups

Priorto2023andforpurposesofidentifyingthepeergrouptodeterminerelativeTSRforthe2022-2024PUs,the Committeeusedthefollowingobjectivecriteria:publiccompaniesheadquarteredintheU.S.(i)insimilarindustriesbased ontheirclassificationinoneoffiveGlobalIndustryClassificationStandard(GICS)groups(diversifiedchemicals,specialty chemicals,metalandglasscontainers,paperandplasticpackagingproducts,andpaperproducts),(ii)withrevenues duringthelast12monthsof$1billionto$20billionand(iii)nobankruptciesinthelastthreeyears.

Beginningin2023andforpurposesofidentifyingthepeergrouptodeterminerelativeTSRforthe2024-2026PUs, theCommitteeusedthefollowingobjectivecriteria:publiccompaniesprimarilylistedonaU.S.stockexchange(i)in similarindustriesbasedontheirclassificationinthefiveGICSgroupsnamedabove,(ii)withmarketcapitalizationofat least$1.5billionandrevenuesduringthelast12monthsof$3billionto$30billionand(iii)nobankruptciesinthelast threeyears.

PEERGROUPFORDETERMININGRELATIVETSRFORPUs

2022-2024PUsATTIMEOFPAYOUT(38companies)2024-2026PUsATYE2024(30companies)

AlbermarleCorporation

AptarGroup,Inc.

AshlandGlobalHoldingsInc.

AvientCorporation

AxaltaCoatingSystemsLtd.

BallCorporation

BerryGlobalGroup,Inc. CelaneseCorporation

ClearwaterPaperCorporation CrownHoldings,Inc. EastmanChemicalCompany EcolabInc. EcovystInc.

ElementSolutionsInc. GraphicPackagingInternational,LLC Greif,Inc.

H.B.FullerCompany

HuntsmanCorporation

IngevityCorporation

InnospecInc.

InternationalFlavors&Fragrances,Inc.

MineralsTechnologiesInc.

NewMarketCorporation

O-IGlass,Inc.

PackagingCorporationofAmerica

PactivEvergreenInc.

PPGIndustries,Inc.

QuakerChemicalCorporation

RayonierInc.

RPMInternationalInc.

SealedAirCorporation

SensientTechnologiesCorporation

SilganHoldingsInc.

SonocoProductsCompany

StepanCompany TheChemoursCompany

TheSherwin-WilliamsCompany Valhi,Inc.

AlbermarleCorporation Amcorplc

AptarGroup,Inc. ArdaghMetalPackagingS.A. AvientCorporation

AxaltaCoatingSystemsLtd. BallCorporation

BerryGlobalGroup,Inc. CelaneseCorporation

CrownHoldings,Inc. DupontdeNemours,Inc. EastmanChemicalCompany EcolabInc. GraphicPackaging International,LLC Greif,Inc.

H.B.FullerCompany HuntsmanCorporation InternationalFlavors& FragrancesInc. InternationalPaperCompany O-IGlass,Inc.

PackagingCorporationof America

PactivEvergreenInc. PPGIndustries,Inc. RPMInternationalInc.

SealedAirCorporation

SilganHoldingsInc.

SonocoProductsCompany

SylvamoCorporation

TheChemoursCompany

TheSherwin-WilliamsCompany

INDEPENDENTOVERSIGHTANDEXPERTISE

OurBoardbelievesthatretainingourexecutivesandprovidingthemwithmarket-competitivecompensationare criticaltothesuccessofourcompanyandadvancingtheinterestsofourstockholders.TheCommittee,whichis composedsolelyofindependentdirectors,isresponsibleforapprovingexecutivecompensation.TheCommitteemay delegateauthoritytosubcommitteesor,incertaincircumstancesunrelatedtothecompensationofourexecutiveofficers, toourCEO.

Underitscharter,theCommitteemayretainandterminateanycompensationconsultantorotherexternaladvisorat ourexpenseandhassoleauthoritytoapprovetheadvisor’sfeesandothertermsandconditionsoftheretention.The Committeeannuallyconsiderstheindependenceofitsadvisors.

TheCommitteehasretainedWTWasitsindependentcompensationconsultant,withthefirmperformingthe servicesdescribedbelowfororattherequestoftheCommitteein2024.

2024WTWSERVICES

•BenchmarkedCEOandExecutiveChairmancompensationandprovideddatatobenchmarkcompensationofothercorporatefunctionalleaders

•Assessednon-employeedirectorcompensation

•Conductedcompensationpay-riskassessment

•Providedincentivecompensationadvice(includingrecommendingcriteriaused todeterminepeergroupformeasuringrelativeTSRcomponentofPUs)

•ConductedanalysesofshareutilizationandstockholdervaluetransferrelatedtoLTIcompensation

•CommentedonCD&Aandcertainother2024proxystatementdisclosures

•Analyzedproxyadvisoryfirm’sprojectedpay-for-performanceanalysis

•Advisedonexecutivecompensationtrendsandregulatoryupdates

•Preparedfor,attendedandrevieweddocumentationforCommitteemeetings

In2024,WTWreceived$161,333incompensationfromourcompanyforprofessionalservicesperformedfororat therequestoftheCommittee.Wealsoreimbursedthefirmforitsreasonableout-of-pocketexpenses.

TheCommitteeperformeditsannualassessmentofWTW’sperformanceinNovember2024,whichincludedan evaluationoftheservicedeliveryprovidedbythefirmandengagementteamduringtheyear,aswellasthecriteria describedbelow.

• Experience –Thefirm’sdepthandbreadthofexecutivecompensationandboardadvisoryknowledgeand experience;qualificationsasaboard-levelconsultant;qualityofresourcesavailable,includingstaffanddata;and understandingofourbusinessstrategy,challenges,industry,performancedriversandtalentconsiderations

• Independence –Thefirm’sobjectivityingivingadviceandmakingrecommendations,anditswillingnessto providecandidfeedbackregardingmanagementandCommitteeproposals,questionsandconcerns

• Preparation –Thequalityandtimelinessofthefirm’sreports,includingaccuracy,typeandamountof information,clearcommunicationandresponsivenesstoissues;itsreviewandfeedbackonmanagement proposals;andthefirm’spreparationwiththeCommitteeChairandmanagement,asappropriate

• CommitteeRelationship –Theaccessibilityandavailabilityandcommunicationeffectivenessofmembersofthe engagementteamandthefirm’sreportingrelationshipwiththeCommitteeChairandworkingrelationshipwith management

Basedonthisevaluation,theCommitteeexpresseditscontinuedsatisfactionwithWTWandthemembersofthe engagementteamadvisingtheCommittee.TheCommitteeChairdiscussedwiththeleadmembersoftheengagement teamtheCommittee’sfeedbackontheirperformance,includingpotentialimprovementopportunities.

AdvisorIndependence

WTWandtheCommitteehaveestablishedthefollowingprotocolstoensurethefirm’sindependencefrom management: theCommitteehasthesoleauthoritytoselect,retainandterminateWTWand,actingthroughits Chair,authorizethefirm’sfees,determinethetermsandconditionsthatgoverntheengagement anddirectWTWon thedeliveryandcommunicationofitsworkproduct; intheperformanceandevaluationofitsduties,WTWis accountable,andreportsdirectly,totheCommittee;andmembersoftheCommitteemayconsultwithWTWatany time,withorwithoutmembersofmanagementpresent,intheirsolediscretion.

TheCommitteeconsideredtheindependenceofitsadvisorsinNovember2024,notingthebelowfactorsregarding WTW’sindependence.

•WTWperformedminimalotherservicesforourcompanyin2024outsideoftheexecutivecompensation servicesitperformedfororattherequestoftheCommittee

•Feesfromourcompanyreflectedlessthan0.002%ofWTW’srevenueforits2024fiscalyear

•WTWhaspoliciesandprocedurestoensureitsadviceisobjectiveandindependent,includingacomprehensive codeofconduct,ethicsandqualitypoliciesthatmandaterigorousworkreviewsandperiodiccompliance reviews,andconsultingprotocolstoensuretheobjectivityofitscompensationconsultingwork

•BasedondisclosuresfromWTWandmembersoftheCommittee,therearenobusinessorpersonal relationshipsbetweenthem

•NomembersoftheWTWteamservingtheCommitteeownstockinourcompany,otherthanpotentiallythrough investmentsinmutualorotherfundsmanagedwithoutthemember’sinput

•Basedondisclosuresfromthefirmandourofficers,therearenobusinessorpersonalrelationshipsbetween WTWorthemembersoftheengagementteamadvisingtheCommitteewithanyexecutiveofficerofour company

COMPENSATIONCLAWBACKPOLICIES

OurPolicyforRecoveryofErroneouslyAwardedCompensation(“Section16Clawback”)appliestoourcurrentand formerexecutiveofficers,includingallNEOs,andsubjectstheirincentive-basedcompensationreceivedonorafter October2,2023toclawbackintheeventourcompanyisrequiredtoprepareanaccountingrestatementtocorrect materialnoncompliancewithanyfinancialreportingrequirementunderU.S.securitieslaws,includingrestatementsthat correctanerrorinpreviouslyissuedfinancialstatementsthat(i)ismaterialtothepreviouslyissuedfinancialstatementsor (ii)wouldresultinamaterialmisstatementiftheerrorwerecorrectedorleftuncorrectedinthecurrentperiod.Inthese circumstances,theSection16Clawbackrequiresourcompanytorecover,reasonablypromptly,theportionofincentivebasedcompensationthatisdeemedtohavebeenerroneouslyawarded,unlesstheCommittee(whichadministersthe policy)determinesthatrecoverywouldbeimpracticableandthatoneormoreoftheallowableimpracticabilityconditions underSECruleshasbeenmet.Recoveryisrequiredwhetherornottheapplicableofficerengagedinmisconductor otherwisecausedorcontributedtotherequirementfortherestatement. Eachofourexecutiveofficers,includingall NEOs,hasagreedtothetermsoftheSection16Clawbackandacknowledgedthattheircompensationmaybe subjecttoreduction,cancellation,forfeitureand/orrecoupment.

AtthetimeitrecommendedtoourBoardtheadoptionoftheSection16Clawback,theCommitteerecommended thatourexistingclawbackpolicyremainineffect.ThisclawbackpolicyapplicabletoallAIPandLTIrecipientsrequires that,intheeventoffraudorotherintentionalmisconductonthepartofanawardeethatnecessitatesarestatementof ourfinancialresults(including,withoutlimitation,anyaccountingrestatementduetomaterialnoncompliancewithany financialreportingrequirement),theCommitteemayrequirethattheawardeereimburseourcompanyforanyAIPor LTIawards,includingtime-vestingLTIawards,paidorissuedinexcessoftheamountthatwouldhavebeenpaidor issuedbasedontherestatedfinancialresults. Thismorewidelyapplicableclawbackpolicyhasbeenexpressly incorporatedintoourAIPandLTIplansandiscontractuallyagreedtobyLTIrecipients,includingallNEOs,intheir annualawardagreements.

EQUITYGRANTPRACTICES

Wedonotgrantequityawardsinanticipationofthereleaseofmaterialnonpublicinformationortimethereleaseof materialnonpublicinformationforthepurposeofaffectingthevalueofexecutivecompensation.Intheeventmaterial nonpublicinformationweretobecomeknowntotheCommitteebeforethegrantofanequityaward,theCommittee wouldconsidertheinformationanduseitsbusinessjudgmenttodeterminewhethertodelaythegranttoavoidany appearanceofimpropriety.

OurpolicyistograntourannualLTIawardsonMarch1st andgrantspecialLTIawardsonthefirstdayofMarch,June, SeptemberandDecember.In2024,wedidnotgrantanystockoptions,stockappreciationrightsorsimilaroption-like instrumentstoourNEOs.

TALENTANDCOMPENSATIONCOMMITTEEREPORT

TheTalentandCompensationCommittee(referredtointhisreportasthe“Committee”)ofourBoardhasreviewed anddiscussedtheCompensationDiscussionandAnalysis(CD&A)requiredbyItem402(b)ofRegulationS-Kwith managementand,basedonitsreviewandthosediscussions,hasrecommendedtoourBoardthattheCD&Abeincluded inour2025proxystatementandincorporatedbyreferenceintoour2024AnnualReport.

FormerdirectorsJuliaStewartandKenHicksservedontheCommitteethroughAprilandearlyNovember2024, respectively,andneitherofthemparticipatedinthereview,discussionsandrecommendationreflectedinthisCommittee report.

TheCommitteewelcomesfeedbackregardingourexecutivecompensationprogram.Stockholdersmaycommunicate withtheCommitteebywritingtotheCompensationCommitteeChair,c/oCorporateSecretary,8080NortonParkway, Mentor,Ohio44060.

BradleyA.Alford,ChairAndresA.LopezFrancescaReverberi

EXECUTIVECOMPENSATIONTABLES

2024SUMMARYCOMPENSATIONTABLE

PrincipalPositionYearSalary($)(1)

DeonM.Stander

President&2024$1,100,000$6,643,355–$1,960,200–$149,817$9,853,372 ChiefExecutiveOfficer2023$844,231$2,071,369$3,000,025$0–$155,337$6,070,962 2022$664,706$3,454,633–$304,500–$125,982$4,549,821

DannyG.Allouche(5)(6)

SeniorVicePresident,2024$448,530$517,283–$298,916–$125,422$1,390,151 ChiefStrategyandCorporate DevelopmentOfficer& InterimChiefFinancialOfficer

GregoryS.Lovins(5)

SeniorVicePresident&2024$730,056$1,887,374–$665,130$1,721$136,045$3,420,326 ChiefFinancialOfficer2023$736,539$3,156,886–$0$821$156,649$4,050,895 2022$690,315$1,594,295–$304,500–$136,184$2,725,294

MitchellR.Butier

ExecutiveChairman2024$1,000,000$4,926,903––$14,319$110,447$6,051,669 2023$1,180,769$8,285,412–$0$5,812$228,115$9,700,108 2022$1,176,923$6,769,541–$974,400–$186,875$9,107,739

FranciscoMelo(5)(6)

President,SolutionsGroup2024$530,295$941,921–$136,631–$40,959$1,649,806 2023$492,075$871,680–$0–$21,169$1,384,924 RyanD.Yost(5)

President,MaterialsGroup2024$501,442$1,928,833–$472,500–$97,710$3,000,485

(1) Salaryadjustments,ifany,generallybecomeeffectiveinAprilunlessachangeinroleleadstoanadjustmentatadifferenttimeofyear.

(2) Amountsin2024forallNEOsotherthanMr.ButierincludethegrantdatefairvalueofPUs,whichareeligibleforvestingattheendofathree-yearperiodbased ontheachievementofthedesignatedperformanceobjectivesasoftheendoftheperiod.Thenumberofsharesvestingcanrangefrom0%to200%ofthetarget unitsonthegrantdate.TheperformanceobjectivesthatdeterminethenumberofsharesthatmaybeearnedforthePUsgrantedtoparticipatingCorporate NEOs(Messrs.Stander,AlloucheandLovins)are(i)companycumulativeEVA(weighted50%),whichisaperformanceconditionunderASC718,and(ii)relative TSR(weighted50%),comparedtoadesignatedpeergroup,whichisamarketconditionunderASC718,ineachcasecalculatedoverthe2024-2026 performanceperiod.ForBusinessNEOs(Messrs.MeloandYost),theperformanceobjectivesarecumulativeEVAfortheirrespectivebusiness(weighted75%) andrelativeTSR(weighted25%),ineachcasecalculatedoverthe2024-2026performanceperiod.ForMr.Yost,amountalsoincludesthegrantdatefair valueof aspecialawardofPUswiththesameperformanceobjectivesandweightingsasthe2024-2026PUsgrantedtoparticipatingCorporateNEOs.Fairvaluesofthe performanceconditioncomponentweredeterminedbasedonthefairmarketvalueofourcommonstockonthegrantdate,adjustedforforegonedividends duringtheperformanceperiod.MaximumgrantdatefairvaluesoftheperformanceconditioncomponentofPUswere$3,386,305,$263,739,$962,065, $717,817and$727,355forMessrs.Stander,Allouche,Lovins,MeloandYost,respectively.Themaximumgrantdatefairvalueoftheperformancecondition componentofthespecialawardofPUsgrantedtoMr.Yostwas$307,695.Fairvaluesofthemarketconditioncomponentweredeterminedusingthe Monte-Carlosimulationmethod,whichutilizesmultipleinputvariablestoestimatetheprobabilityofachievingtheperformanceobjectivesestablishedforthe award,includingtheexpectedvolatilityofourstockpricerelativetothedesignatedpeergroupattheendofthethree-yearperformanceperiodanda risk-free interestrateof4.29%derivedfromlinearinterpolationofthetermstructureofTreasuryConstantMaturitiesyieldratesfortheperiod.BasedontheMonte-Carlo simulationmethod,grantdatefairvaluesofthemarketconditioncomponentofPUswere120.77%ofouraveragestockpriceonthegrantdate.Targetgrant datefairvaluesofthemarketconditioncomponentofPUswere$1,650,049,$128,491,$468,873,$116,502and$150,123forMessrs.Stander,Allouche, Lovins,MeloandYost,respectively.ThetargetgrantdatefairvalueofthemarketconditioncomponentofthespecialawardofPUsgrantedtoMr.Yostwas $118,065.

Amountsin2024forallNEOsotherthanMr.ButieralsoincludethegrantdatefairvalueofMSUs,whichareeligibleforvestingover1-,2-,3-and4-year performanceperiodsprovidedthatthedesignatedperformanceobjectiveisachievedasoftheendofeachperiod.Thenumberofsharesvestingcanrangefrom 0%to200%ofone-quarterofthetargetunitsonthegrantdate.Thesoleperformanceobjectivethatdeterminesthenumberofunitsthatmaybeearnedfor MSUsisabsoluteTSR,whichisamarketconditionunderASC718.ThegrantdatefairvalueofMSUswas120.36%ofouraveragestockpriceonthegrantdate determinedusingtheMonte-Carlosimulationmethodbasedonrisk-freeinterestratesof4.90%,4.51%,4.29%and4.21%forthefirst,second,thirdandfourth MSUtranches,respectively.TargetgrantdatefairvaluesofMSUswere$3,300,154,$256,923,$937,468,$466,511and$472,577forMessrs.Stander, Allouche,Lovins,MeloandYost,respectively.Maximumgrantdatefairvalueswerethesameastargetgrantdatefairvalues.

Amountsin2024forMessrs.ButierandYostincludethegrantdatefairvaluesofRSUs,withoutadjustmentforforfeitures.RSUsawardedtoMr.Butiercliff-vest onthefirstanniversaryofthegrantdateandRSUsawardedtoMr.Yostcliff-vestonthethirdanniversaryofthegrantdate.GrantdatefairvaluesoftheseRSUs were$4,926,903and$670,543,respectively,determinedbasedontheclosingpriceofourcommonstockonthegrantdate,adjustedforforegonedividends.

(3) AmountsreflectAIPawardsfortheapplicableyear,whicharedeterminedinFebruaryandpaidinMarchofthefollowingyear.

(4) Thetablebelowshowsthecomponentsoftheseamountsfor2024.

PerquisitesBenefits

Stander$70,000$3,024–$22,425$44,123–$2,619$6,726$900$149,817 Allouche––$20,265$100,157*–$5,000–––$125,422 Lovins$65,000––$22,425$35,806$5,000$2,619$4,295$900$136,045 Butier–––$22,425$70,057$10,000$2,619$4,446$900$110,447 Melo$16,270$6,796$16,261––$1,632–––$40,959 Yost$58,404––$22,425$10,881$1,000$533$3,567$900$97,710

*AmountsrepresentscompanycontributionsintoretirementfundsasrequiredbyIsraelilaw.

(5) Messrs.AlloucheandYostbecameNEOsin2024andMr.MelobecameanNEOin2023.AspermittedbySECrules,thetableshowstheircompensation beginningintheyearinwhichtheybecameNEOs.Mr.LovinswentonmedicalleaveinNovember2024.

(6) AmountsforMessrs.AlloucheandMelowereconvertedfromIsraelishekelsandeuros,respectively,usingtheaveragemonthlyexchangeratesfor2024

EstimatedFuturePayouts UnderNon-Equity IncentivePlanAwards($)(1)

EstimatedFuturePayouts UnderEquity IncentivePlanAwards(#)(2)

Name Award Type Grant DateThresholdTargetMaximumThresholdTargetMaximum

DeonM.Stander

DannyG.Allouche

GregoryS.Lovins

AllOther Stock Awards: Numberof Sharesof Stockor Units(#)(3) Exerciseor BasePrice ofOption Awards($)

GrantDate FairValue ofStock andOption Awards($)(4)

MSUs03/01/24–––10,79912,70525,410––$3,300,154 PUs03/01/24–––7,24914,49728,994––$3,343,201 AIPAward–$297,000$1,485,000$2,970,000––––––

MSUs03/01/24–––8419891,978––$256,923 PUs03/01/24–––5651,1292,258––$260,360 AIPAward–$45,290$226,452$452,904––––––

MSUs03/01/24–––3,0683,6097,218––$937,468 PUs03/01/24–––2,0604,1198,238––$949,906 AIPAward–$120,938$604,688$1,209,376––––––MitchellR.Butier

RSUs03/01/24––––––23,101–$4,926,903 FranciscoMelo

MSUs03/01/24–––1,5271,7963,592––$466,511 PUs03/01/24–––1,0892,1784,356––$475,410 AIPAward–$62,105$310,523$621,046––––––RyanD.Yost

MSUs03/01/24–––1,5461,8193,638––$472,577 PUs03/01/24–––1,1042,2074,414––$481,743 SpecialPUs03/01/24–––6591,3182,636––$303,970 SpecialRSUs03/01/24––––––3,234–$670,543 AIPAward–$63,000$315,000$630,000––––––

(1) Amountsrepresentthreshold,targetandmaximumopportunitiesunderthe2024AIP.TargetAIPawardsweredeterminedbymultiplyingeachNEO’s2023 year-endbasesalary,exceptforMr.YostwhoseawardwasbasedonhisbasesalaryinMarch2024,bythefollowingtargetopportunities:135%forMr.Stander; 50%forMr.Allouche;75%forMr.Lovins;and60%forMessrs.MeloandYost.Mr.Butierwasnotaparticipantinthe2024AIP.TheAIPpayoutforparticipating CorporateNEOs(Messrs.Stander,AlloucheandLovins)rangesfromzeroforbelow-thresholdperformancewithrespecttoeachoftheperformanceobjectives; 20%forthresholdperformancebasedonathresholdof0%fortheadjustedEPSperformanceobjectiveandathresholdof50%fortheadjustedsalesgrowth and adjustedfreecashflowperformanceobjectives;100%fortargetperformancewithrespecttoeachoftheperformanceobjectives;and200%formaximum performancewithrespecttoeachoftheperformanceobjectives.TheAIPpayoutforBusinessNEOs(Messrs.MeloandYost)rangesfromzeroforbelow-threshold performancewithrespecttoeachoftheperformanceobjectives;20%forthresholdperformancebasedonthresholdsof0%fortheadjustedEPSandadjustednet incomeperformanceobjectivesand50%fortheadjustedsalesgrowthandadjustedfreecashflowperformanceobjectives;100%fortargetperformance with respecttoeachoftheperformanceobjectives;and200%formaximumperformancewithrespecttoeachoftheperformanceobjectives.AmountsforMessrs. AlloucheandMelowereconvertedfromIsraelishekelsandeuros,respectively,usingtheaveragemonthlyexchangeratesforDecember2024.

(2) AmountsforMSUsrepresentthreshold,targetandmaximumopportunities,whicharepaidoutinsharesofourcommonstockover1-,2-,3-and4-year performanceperiodsprovidedthattheabsoluteTSRperformanceobjectiveisachievedasoftheendofeachperiod.Thenumberofshareseligibleforvestingat eachvestingdaterangesfrom0%to200%ofone-quarterofthetargetnumberofunitsonthegrantdate,withathresholdpayoutof85%.MSUsaccruedividend equivalentsduringtheperformanceperiod,whichareearnedonlyatvesting.

AmountsforPUsrepresentthreshold,targetandmaximumopportunities,whicharepaidoutinsharesofourcommonstockattheendofthethree-year performanceperiodprovidedthattherespectivecumulativeEVAandrelativeTSRperformanceobjectivesareachievedattheendoftheperiod.CumulativeEVAis weighted50%forparticipatingCorporateNEOs(basedoncompanyEVA)and75%forBusinessNEOs(basedonbusinessEVA);relativeTSRisweighted50% forparticipatingCorporateNEOsand25%forBusinessNEOs.Thenumberofshareseligibleforvestingrangesfrom0%to200%ofthetargetnumberofunitson thegrantdate,withapayoutof50%ifthresholdperformanceisachievedwithrespecttoeachoftheperformanceobjectives.

(3) RSUsawardedtoMr.Butiercliff-vestonthefirstanniversaryofthegrantdateandRSUsawardedtoMr.Yostcliff-vestonthethirdanniversaryofthegrantdate.

(4) Formoreinformationonhowwedeterminegrantdatefairvalues,seefootnote(2)ofthe 2024SummaryCompensationTable. Additionalinformationregarding theassumptionsweuseforstock-basedcompensationcanbefoundinNote12,“Long-TermIncentiveCompensation,”totheconsolidatedfinancialstatements containedinour2024AnnualReport.

Number ofShares orUnits ofStock That HaveNot Vested (#) Market Valueof Sharesor Unitsof StockThat HaveNot Vested($)(1) Equity Incentive PlanAwards: Numberof Unearned Shares,Unitsor OtherRights ThatHaveNot Vested(#) Equity Incentive PlanAwards: Marketor PayoutValue ofUnearned Shares,Unitsor OtherRights ThatHaveNot Vested($)(1)

DeonM.Stander 03/01/21––––––776(2) $146,284 03/01/22––––––3,174(3) $598,331 03/01/22––––––3,745(2) $705,970 03/01/22––––8,793(4) $1,657,568––03/01/23––––––5,623(3) $1,059,992 03/01/23––––––4,177(2) $787,406 09/01/23–62,955$190.5409/01/33––––03/01/24––––––22,663(3) $4,272,202 03/01/24––––––25,397(2) $4,787,588 –62,9558,793$1,657,56865,555$12,357,773

DannyG.Allouche 03/01/21––––––372(2) $70,126 03/01/22––––––811(3) $152,881 03/01/22––––––957(2) $180,404 03/01/23––––––1,434(3) $270,323 03/01/23––––––1,066(2) $200,952 03/01/23––––3,292(4) $620,575––03/01/24––––––1,765(3) $332,720 03/01/24––––––988(2) $186,248 ––3,292$620,5757,393$1,393,654

GregoryS.Lovins

03/01/21––––––1,202(2) $226,589 03/01/22––––––2,499(3) $471,086 03/01/22––––––2,948(2) $555,728 03/01/23––––––4,686(3) $883,358 03/01/23––––––3,481(2) $656,203 03/01/23––––8,230(4) $1,551,437––03/01/24––––––6,439(3) $1,213,816 03/01/24––––––7,214(2) $1,359,911 ––8,230$1,551,43728,469$5,366,691 MitchellR.Butier 03/01/21––––––5,454(2) $1,028,134 03/01/22––––––10,611(3) $2,000,280 03/01/22––––––12,516(2) $2,359,391 03/01/23––––––22,493(3) $4,240,155 03/01/23––––––16,708(2) $3,149,625 03/01/24––––23,101(4) $4,354,770––––23,101$4,354,77067,782$12,777,585

FranciscoMelo 03/01/21––––––358(2) $67,487 03/01/22––––––26,726(3) $5,038,118 03/01/22––––––841(2) $158,537 03/01/23––––––2,401(3) $452,612 03/01/23––––––1,771(2) $333,851 03/01/24––––––2,178(3) $410,575 03/01/24––––––3,590(2) $676,751 ––––37,865$7,137,931

RyanD.Yost 03/01/21––––––138(2) $26,015 03/01/22––––––5,419(3) $1,021,536 03/01/22––––––341(2) $64,282 03/01/22––––2,931(4) $552,523––03/01/23––––––912(3) $171,921 03/01/23––––––673(2) $126,867 03/01/24––––––3,961(3) $746,688 03/01/24––––––2,060(3) $388,331 03/01/24––––––3,636(2) $685,422 03/01/24––––3,234(4) $609,641––––6,165$1,162,16417,140$3,231,062

(1) Marketvaluecalculatedusingthe$188.51closingpriceofourcommonstockonDecember27,2024,thelasttradingdayofourfiscalyear.

(2) MSUsareeligibleforvestingover1-,2-,3-and4-yearperformanceperiods,subjecttoachievementoftheabsoluteTSRperformanceobjective.Amountsareshownat (i)128%,92%,96%and93%oftargetforthevestingtranchesoftheMSUsgrantedin2021,2022,2023and2024,respectively,whichwerethepayoutsbased on performanceasdeterminedbytheCompensationCommitteeinFebruary2025;(ii)themaximumlevelofperformancefortheremainingtranchesoftheMSUsgrantedin2022, asperformancethroughfiscal-yearendwouldresultinabove-targetpayouts;and(iii)thetargetlevelofperformancefortheremainingtranchesof theMSUsgrantedin2023 and2024,asperformancethroughfiscal-yearendwouldresultinbelow-targetpayouts.

(3) PUsareeligibleforvestingattheendofathree-yearperformanceperiod,subjecttoachievementoftherespectivecumulativeEVAandrelativeTSRperformance objectives.AmountsfortherespectivecumulativeEVAcomponentof2022-2024PUsreflect0%oftargetforallNEOs,whichwasthepayoutbasedonperformance determinedbytheCompensationCommitteeinFebruary2025.AmountsfortherespectivecumulativeEVAcomponentof(i)2023-2025PUsreflectthetargetlevelof performance,asperformancethroughfiscal-yearendwouldresultinbelow-targetpayouts,and(ii)2024-2026PUsreflectthemaximumlevelofperformanceforparticipating CorporateNEOsandMaterialsNEO,asperformancethroughfiscal-yearendwouldresultinabove-targetpayouts,andthetargetlevelofperformanceforSolutionsNEO,as performancethroughfiscal-yearendwouldresultinabelow-targetpayout.AmountsfortherelativecomponentofTSRcomponentof2022-2024PUsreflect100%oftarget forallNEOs,whichwasthecappedpayoutbasedonperformancedeterminedbytheCompensationCommitteeinFebruary2025.AmountsfortherelativeTSR componentof 2023-2025PUs,2024-2026PUsandMr.Yost’sspecialawardof2024-2026PUsreflectthetargetlevelofperformance,asperformancethroughfiscalyear-endwouldresult inatorbelow-targetpayouts.

(4) RSUsofMessrs.Stander,LovinsandYostcliff-vestonthethirdanniversaryofthegrantdate,RSUsofMr.Allouchecliff-vestonthe25-monthanniversaryofthegrantdate, andRSUsofMr.Butiercliff-vestonthefirstanniversaryofthegrantdate.

2024OPTIONEXERCISESANDSTOCKVESTED

ThetablebelowprovidesinformationregardingthenumberofsharesacquiredandthevaluerealizedbyourNEOs upontheexerciseofoptionawardsandvestingofstockawardsduring2024.

OptionAwardsStockAwards

DeonM.Stander ––13,730$2,971,859

DannyG.Allouche ––4,459$965,151

GregoryS.Lovins ––13,914$3,011,685

MitchellR.Butier 141,108$19,544,72559,889$12,962,974

FranciscoMelo ––3,429$742,207

RyanD.Yost ––3,069$664,285

(1) Amountsreflectthenumberofsharesacquiredonvestingmultipliedbythefairmarketvalueofourcommonstockonthevestingdate.ForvestingMSUs,amounts includethepayoutofaccrueddividendequivalents.

2024PENSIONBENEFITS

Thepresentvalueofaccumulatedpensionbenefitsshowninthetablebelowwascalculatedbasedonthe assumptionsweusedtocalculateourpensionbenefitobligationsintheconsolidatedfinancialstatementscontainedin our2024AnnualReport.Amountsshownreflectthelump-sumpresentvalueofthepensionbenefitsaccumulatedasof December27,2024,thelasttradingdayofourfiscalyear.Messrs.Stander,Allouche,MeloandYostarenotincludedin thetablebecausetheyhavenoaccumulatedpensionbenefits.

NumberofYearsof

NamePlanName

MitchellR.Butier BenefitRestorationPlan9.33$244,394–

GregoryS.Lovins BenefitRestorationPlan15.58$32,175–

(1) TheBenefitRestorationPlanallowsforlump-sumpayment.Forinformationregardingtheassumptionsweusetodeterminethepresentvalueofaccumulated pensionplanbenefits,seeNote6,“PensionandOtherPostretirementBenefits,”totheconsolidatedfinancialstatementscontainedinour2024AnnualReport.

BenefitRestorationPlan

OurBenefitRestorationPlan(BRP)isanonqualifiedexcessbenefitplanthatprovidessupplementalretirement benefitstoeligibleparticipantsequaltotheamountbywhichtheirbenefitspayableunderourformerU.S.pensionplan wouldhavebeenreducedundertheCode.Messrs.ButierandLovinsareouronlyNEOseligibletoreceivebenefitsunder theBRP.Noaccrualsweremadeduring2024astheplanwasfrozenin2010.

CompensationcoveredbytheBRPincludesbasesalaryandAIPawardsthroughthedatetheplanwasfrozen,upto applicablestatutorylimitationseachplanyear.EligibleemployeesvestedintheBRPafterfiveyearsofservice,oratage 55uponterminationofemployment.BenefitsundertheBRParebasedonpensionableearnings,lengthofservice,when benefitscommenceandhowtheyarepaid.Benefitsarecalculatedseparatelyforeachyearofapplicableserviceusinga formulaequalto1.25%timescompensationuptothebreakpoint(whichforeachyearpriortoourfreezingtheaccrualof additionalbenefitswastheaverageoftheSocialSecuritywagebasesforthepreceding35years)plus1.75%times compensationinexcessofthebreakpoint.Theresultsofthecalculationforeachyearofserviceareaddedtogetherto determinetheannualsinglelifeannuitybenefitundertheBRPforanemployeeatretirementatage65,whichisnot subjecttoreductionforSocialSecuritypayments.Paymentsaremadeinalump-sumdistributiongenerallypayableupon thelaterofseparationfromserviceandage55,unlessatimelyelectionismadeformonthlypaymentsoverthelifetimeof theparticipantand,ifapplicable,adesignatedbeneficiary.

2024NONQUALIFIEDDEFERREDCOMPENSATION

ThetablebelowprovidesinformationregardingexecutiveandcompanycontributionstoourExecutiveVariable DeferredRetirementPlan(EVDRP).UndertheEVDRP,participantsmaychooseamongpubliclyavailablefundsranging frommoneymarketandbondfundstoindexandotherequity/mutualfunds.Theirrateofreturndependsonthefunds theyselect.

Asnon-U.S.NEOs,Messrs.AlloucheandMeloarenotcurrentlyeligibletoparticipateintheEVDRP.However, Mr.Allouchehasabalancefromwhenhewasaparticipantintheplanandhasthereforebeenincludedinthetable whereasMr.Melowasneveraparticipantintheplanandhasthereforebeenexcludedfromthetable.

Name Executive Contributions inLastFY($) Registrant Contributions inLastFY($)(1) Aggregate Earnings inLastFY($)(2)

Aggregate Balanceat LastFYE($)

DeonM.Stander

$110,000$44,123$204,730$1,972,037

DannyG.Allouche ––$8,341$157,403

GregoryS.Lovins –$35,806$205,459$969,497

MitchellR.Butier

RyanD.Yost

$20,000$70,057$904,646$4,712,147

$27,255$10,881$7,148$101,642

(1) CompanycontributionstotheEVDRPareincludedintheAllOtherCompensationcolumnofthe 2024SummaryCompensationTable.

(2) AmountsreflectEVDRPvestedaccountbalancesasofDecember27,2024,thelasttradingdayofourfiscalyear.Becausetheamountsdonotrepresent above-marketearnings,theyarenotreportedinthe 2024SummaryCompensationTable.TheamountsshownbelowwerereportedintheAllOther Compensationcolumnof SummaryCompensationTables inpreviousproxystatements.Messrs.AlloucheandYostbecameNEOsin2024;assuch,theyhadno previouslyreportedamounts.

PreviouslyReported($) Stander$228,077 Lovins$274,086 Butier$1,045,935

ExecutiveVariableDeferredRetirementPlan

UndertheEVDRP,eligibleU.S.employeescandeferupto75%oftheirsalaryand90%oftheirAIPaward.Deferrals areimmediatelyvested.Earningsarebasedonafixedrateand/ortheperformanceofvariablebondandequityfunds selectedbytheparticipantfromtheavailableoptions. TheEVDRPdoesnotofferinvestmentoptionsthatprovide above-marketinterestrates.

Eligibleemployeesareabletodefertaxesuntiltheirdeferralsarewithdrawn,providingthemanopportunityto accumulatesavingsonapre-taxbasis.Wealsobenefitfromthisarrangementbecausewecanusethiscashforother purposesuntiladeferredcompensationaccountispaidtoaparticipantbasedonhisorherelectiontoreceive withdrawalseitherin-serviceorafterterminationofemployment. Alldeferredcompensationaccountsareunfunded obligationsofourcompanyandsubjecttothesamerisksasanyofourgeneraldebtsandobligations.Asaresult, theseaccountshelpmitigaterisk-seekingbehaviorbymanagementthatcouldbedetrimentaltothelong-termhealth ofourcompany.

Asofthefirstbusinessdayofour2024fiscalyear,wemadeacontributiontothedeferredcompensationaccountsof eligibleparticipants,includingallU.S.NEOs,basedon401(k)eligiblepayinexcessofthefederalcompensationlimitand deferredcompensationin2023.Thisannualcontribution,whichisdesignatedtosupplement401(k)contributionsthat arelimitedundertheCode,providesanautomaticcontributionof3%ofdeferredandeligiblepayplusamatching contributionofupto50%onthefirst7%ofdeferrableandeligiblepaynotcoveredbycompanycontributionstoour 401(k)Plan.

Contributionstodeferredcompensationaccountsarerequiredtobedistributedfollowinganeligibleemployee’s separationfromservice.SubjecttoSection409AoftheCode,eligibleemployeesmayelecttoreceiveseparationfrom servicewithdrawalsintheformofalump-sumpaymentormonthlyinstallmentsovertwoto20years.Eligibleemployees maychangethemethodinwhichpaymentsaredistributedprovidedthattheydosoatleast12monthsbeforethedateof distribution;however,anychangeresultsinthedistributionoccurringorbeginningfiveyearslaterthanitwouldhave otherwise.AllNEOssubjecttoU.S.taxesare“specifiedemployees”underSection409A;asaresult,theirdistributions cannotbemadeuntilsevenmonthsafterseparationfromservice,exceptintheeventofdeath.

PAYMENTSUPONTERMINATIONASOFDECEMBER28,2024

ThetablebelowshowsthepotentialbenefitsthatwouldhavebeenpayabletoourNEOshadtheybeenterminated onthelastdayofour2024fiscalyear.

TerminationScenariosasofEndofFiscalYear2024

Involuntary Termination Notfor Cause

GregoryS.Lovins

MitchellR.Butier

Involuntary Termination within24Months ofChangeof Control

SeverancePayment–––$5,170,000$7,755,000 Medical/DentalPayment–––$60,366$90,549 Outplacement–––$25,000$25,000 UnvestedStockOptions(1) UnvestedRSUs(1)

$1,657,568$1,657,568$1,657,568$1,657,568$1,657,568 UnvestedPUs(1)

$1,826,976$1,826,976$946,195$946,195$4,913,136 UnvestedMSUs(1)

Total

$1,333,355$1,333,355$1,291,360$1,291,360$4,080,983

$4,817,899$4,817,899$3,895,123$9,150,489$18,522,236 EliminationofExciseTaxLiability––––$(2,733,453) ForfeitedEquity(1) $(5,833,788)$(5,833,788)$(6,756,564)$(6,756,564)–

SeverancePayment–––$679,355$679,355 Medical/DentalPayment–––$8,900$8,900 Outplacement–––$25,000$25,000 UnvestedRSUs(1)

$620,575$620,575––$620,575 UnvestedPUs(1) $466,562$466,562––$769,498 UnvestedMSUs(1)

Total

$366,249$366,249––$635,802

$1,453,386$1,453,386–$713,255$2,739,130 ForfeitedEquity(1) $(572,489)$(572,489)$(2,025,874)$(2,025,874)–

SeverancePayment–––$1,410,938$2,821,875 Medical/DentalPayment–––$30,183$60,366 Outplacement–––$25,000$25,000 UnvestedRSUs(1)

$1,551,437$1,551,437––$1,551,437 UnvestedPUs(1) $1,470,944$1,470,944––$2,541,869 UnvestedMSUs(1) $1,164,425$1,164,425––$2,112,685

Total

$4,186,806$4,186,806–$1,466,121$9,113,232 ForfeitedEquity(1)

$(2,019,185)$(2,019,185)$(6,205,991)$(6,205,991)–

UnvestedRSUs(1) ––––$4,354,770 UnvestedPUs(1)

$6,571,710$6,571,710––$7,985,095 UnvestedMSUs(1)

Total

ForfeitedEquity(1)

$5,261,748$5,261,748––$6,453,779

$11,833,458$11,833,458––$18,793,644

$(6,960,186)$(6,960,186)$(18,793,644)$(18,793,644)–FranciscoMelo

SeverancePayment–––$828,062$1,656,124 Medical/DentalPayment–––$769$1,538 Outplacement–––$25,000$25,000 UnvestedPUs(1) $4,273,035$4,273,035––$6,077,185 UnvestedMSUs(1) $441,673$441,673––$900,420

Total

$4,714,708$4,714,708–$853,831$8,660,267 EliminationofExciseTaxLiability––––$(1,613,878) ForfeitedEquity(1) $(2,262,897)$(2,262,897)$(6,977,605)$(6,977,605)–

RyanD.Yost

SeverancePayment–––$840,000$1,680,000 Medical/DentalPayment–––$30,183$60,366 Outplacement–––$25,000$25,000 UnvestedRSUs(1) $552,523$552,523––$1,162,164 UnvestedPUs(1) $876,383$876,383––$1,929,588 UnvestedMSUs(1) $171,815$171,815––$564,509

Total

$1,600,721$1,600,721–$895,183$5,421,627 EliminationofExciseTaxLiability––––$(763,560) ForfeitedEquity(1) $(2,055,540)$(2,055,540)$(3,656,262)$(3,656,262)–

(1) Valuesforequityawardsweredeterminedasfollows:(i)forstockoptions,thenumberofsharesthatwouldhavebeenexercisablemultipliedbythedifference betweenthe$188.51closingpriceofourcommonstockonDecember27,2024,thelasttradingdayofourfiscalyear,andtheapplicableexerciseprice;and(ii)for RSUs,PUsandMSUs,thenumberofsharesthatwouldhavebeenacquiredorforfeitedonvestingmultipliedby$188.51.BecauseMr.Stander’sstockoptions werenotinthemoneyasofDecember28,2024,theyhavebeenexcludedfromthetable.

(2) Mr.StanderwastheonlyNEOthathadreachedtheageof55andhadover10yearsofservicewithourcompanyattheendoffiscalyear2024.Becausehe thereforequalifiedasretirementeligible,ineveryterminationscenario,allofhisunvestedequityawardswouldvest,withPUsandMSUsvestingon aprorated basisaftertheendoftheirrespectiveperformanceperiodbasedonactualperformance.

2025ProxyStatement | AveryDennisonCorporation

Intheeventoftermination,ourNEOswouldbeentitledtoreceiveanyaccruedbalanceundertheEVDRP,subjectto Section409AoftheCode.Theseamountswouldbedistributedinaccordancewiththeparticipant’sdistributionelection andthetermsandconditionsoftheplan,andarenotincludedinthetable.See 2024NonqualifiedDeferred Compensation formoreinformation.

Theotherpotentialpaymentsuponterminationaredescribedbelow.

ExecutiveOfficerCashSeverancePolicy

TheCompensationCommitteeadoptedanExecutiveOfficerCashSeverancePolicyeffectiveJanuary31,2025 providingthatwewillnotenterintoanynewemploymentagreementorseverancearrangementafterthepolicy’s effectivedatewithanexecutiveofficer(asdefinedundertheExchangeAct)ofourcompanyorestablishanynew severanceagreement,plan,arrangementorpolicycoveringanysuchofficeraftersuchdate,ineachcasethatprovidesfor acashseverancepaymentinconnectionwithanyterminationofhisorheremploymentexceeding2.99timesthesumof suchofficer’sbasesalaryplustargetAIPawardwithoutseekingstockholderratificationofsuchagreement,plan, arrangementorpolicy.

ExecutiveSeverancePlan

AllNEOsotherthanMr.ButierareeligibleparticipantsundertheSeverancePlan.Uponinvoluntaryterminationnot forcause,theywouldbeeligiblefortheseveranceandotherbenefitsshownbelow.

Severanceofbasesalary+targetAIPaward foryearoftermination

Non-severancebenefitofcashvalue of12monthsofmedicalanddental insurancepremiums

2 ForCEO

Outplacementservices ofupto$25,000 foruptooneyear ×+

1 ForothereligibleNEOs

BenefitsNotSubjecttoGross-up. Benefitsaresubjecttowithholdingforallapplicabletaxesandnotgrossed-upfor taxes.

TriggerforBenefits. Involuntarytermination,whichexcludesterminationforcauseorduetodisability,death, voluntaryresignation,oranexecutivedecliningsimultaneousorcontinuingemploymentinacomparableposition.

DefinitionofCause. Causeisdefinedas(i)commissionofacrimeorotheractthatcouldmateriallydamagethe reputationofourcompanyoritssubsidiaries;(ii)theft,misappropriationorembezzlementofcompanyorsubsidiary property;(iii)falsificationofcompanyorsubsidiaryrecords;(iv)substantialfailuretocomplywithwrittenpoliciesand procedures;(v)misconduct;or(vi)substantialfailuretoperformmaterialjobdutiesnotcuredwithin30daysafterwritten notice.

KeyExecutiveChangeofControlSeverancePlan

TheCOCSeverancePlanprovidesenhancedterminationbenefitsforkeyexecutivestoincenttheirretentionduringa periodinwhichachangeofcontroltransactionisbeingnegotiatedorahostiletakeoverisbeingattempted.In2024, Messrs.Stander,Lovins,MeloandYostweretheonlyeligibleparticipantsintheCOCSeverancePlan, whichentitles themtobenefitsonlyiftheyareterminatednotfor“cause”orterminateemploymentfor“goodreason”within 24monthsofthechangeofcontrol(a“double-trigger”).Inthesecircumstances,theseNEOswouldbeeligibleforthe severanceandotherbenefitsshownbelow.Intheeventofterminationfollowingachangeofcontrol,ourLevel3NEO wouldbeeligibleforterminationbenefitsundertheSeverancePlandescribedabove.

Severanceofbasesalary+targetAIPaward foryearoftermination

Non-severancebenefitofcashvalue of12monthsofmedicalanddental insurancepremiums

× 2.99 ForCEO (reducedfrom3.00eff. January31,2025) + ProratedtargetAIP awardforyearin whichtermination occurs + Outplacement servicesofupto $25,000forupto oneyear

2 ForLevel2NEOs

BenefitsNotSubjecttoGross-up. Benefitsaresubjecttowithholdingforallapplicabletaxesandnotgrossed-up forexciseorothertaxes. However,ifthepaymentwouldtriggeranexcisetax,theparticipatingNEOcanelecttoreceive (i)fullbenefits,retainingresponsibilityforpayinganyapplicableexcisetaxes,or(ii)reducedbenefitstoanamount sufficienttoeliminateanyexcisetaxliability.Inthe2024terminationpaymentstable,COCpaymentswouldhave triggeredanexcisetaxforalleligibleNEOsotherthanMessrs.AlloucheandLovins.

DefinitionofChangeofControl. Changeofcontrolisdefinedas(i)replacementofamajorityofourBoardduringany 12-monthperiodbydirectorswhoseappointmentorelectionwasnotendorsedbyamajorityofthemembersofour Board;or(ii)acquisitionbyanyperson,grouporcorporationthathasenteredintoamerger,acquisition,consolidation, purchase,stockacquisition,assetacquisitionorsimilarbusinesstransactionwithourcompany,of(A)togetherwithany ofourcompany’sstockpreviouslyheld,morethan50%ofthetotalfairmarketvalueorthetotalvotingpowerofour company’sstock;(B)30%ormoreofthetotalvotingpowerofourcompany’sstockduringany12-monthperiod;or (C)assetsofourcompanyhavingatotalgrossfairmarketvalueof40%ormoreofthetotalgrossfairmarketvalueofall ofourcompany’sassetsduringany12-monthperiod.

DefinitionofCause. CauseisdefinedasitisundertheSeverancePlan.

DefinitionofGoodReason. Goodreasonisdefinedas(i)materialdiminutioninbasecompensation;(ii)material diminutioninauthority,dutiesorresponsibilitiesorsupervisor’sauthority,dutiesorresponsibilities;(iii)materialchangein geographicjoblocation;or(iv)anyotheractionorinactionthatconstitutesamaterialbreachbyourcompany.

EquityIncentivePlans

Underour2017IncentiveAwardPlan,unvestedequityawardsheldbyourNEOsonthedateofterminationwould vestasshownbelow,subjecttotheplan’sone-yearminimumvestingrequirement.Mr.StanderwastheonlyNEOwho qualifiedasretirementeligibleatyear-end2024.

VESTINGOFEQUITYAWARDSONTERMINATIONEVENTS

Resignationor

InvoluntaryTermination, WhetherorNotforCause

Death

QualifyingDisability

QualifyingRetirement

Vestattimeofevent onproratedbasis basedontarget performance

Vestattimeofevent onproratedbasis basedontarget performance

Vestafterendof performanceperiodon proratedbasisbased onactualperformance

Vestattimeofevent onproratedbasis basedontarget performance

Vestattimeofevent onproratedbasis basedontarget performance

Vestafterendof performanceperiodon proratedbasisbased onactualperformance

ChangeofControl

Vestbasedonactual, ifdeterminable,and otherwisetarget performanceif terminatedwithout causeorforgood reasonwithin 24monthsafter changeofcontrol

Vestbasedonactual, ifdeterminable,and otherwisetarget performanceif terminatedwithout causeorforgood reasonwithin 24monthsofchange ofcontrol

VestCancelled

VestCancelled

Vest

Vestifterminated withoutcauseorfor goodreasonwithin 24monthsafter changeofcontrol

Vestandexercisable fortermofoption

Vestifterminated withoutcauseorfor goodreasonwithin 24monthsafter changeofcontrol

NumberofSecurities toBeIssuedUpon Exerciseof Outstanding Options,Warrants andRights(A)

Weighted-Average ExercisePriceof OutstandingOptions, WarrantsandRights(B)

NumberofSecurities RemainingAvailablefor FutureIssuanceUnder EquityCompensationPlans (ExcludingSecurities ReflectedinColumn(A))(C)

598,082$190.542,287,561 Total598,082$190.542,287,561 (1) FollowingstockholderapprovalinApril2017,webeganissuingawardsunderthe2017IncentiveAwardPlaninMayofthatyear.Sharesissuableunder outstandingequityawardsgrantedunderthisplaninclude(i)RSUsandDSUsfornon-employeedirectorsand(ii)RSUs,PUs,MSUsandstockoptionsforofficers andothereligibleemployees.Amountincolumn(A)includes94,895RSUs,54,033DSUs,171,652MSUs(includingaccrueddividendequivalentsandreflectingthe tranchesgrantedin2021,2022,2023and2024),214,547PUs(reflectingthetranchesgrantedin2022,2023and2024)and62,955stockoptions.Forawards subjecttovestingasofDecember28,2024,payoutswerebasedonactualperformance.Forunvestedawardsasofthatdate,awardswithprojectedperformance atorbelowtargetwerecalculatedatthetargetlevelofperformanceandawardswithprojectedperformanceabovetargetwerecalculatedatthemaximumlevelof performance.Amountincolumn(C)representstheaggregatenumberofsharesavailableforfutureissuance,witheachfull-valueawardreducingthenumberof sharesavailableforfutureissuanceby1.5shares.

PAYVS.PERFORMANCEDISCLOSURE

ThetablebelowreflectsinformationregardingthecompensationofourNEOsandourfinancialperformanceforthe lastfivefiscalyearsinaccordancewithSECrules.

Year

Summary Compensation TableTotal for Stander($)(1) Compensation ActuallyPaid to Stander($)(2) Summary Compensation TableTotal for Butier($)(1) Compensation ActuallyPaid toButier($)(2) Average Summary Compensation TableTotal forNon-CEO NEOs($)(1)

2024 $9,853,372$7,425,336––$3,102,488$1,321,463$155.20$136.22$704,936,000$9.43

2023 $6,070,962$7,216,077$9,700,108$10,879,032$2,107,852$351,353$165.02$118.91$502,988,000$7.90

2022 ––$9,107,739$7,588,568$2,405,277$2,220,289$145.19$110.49$757,092,000$9.15

2021 ––$12,433,721$31,508,041$2,342,467$5,263,092$170.89$134.41$740,087,000$8.91

2020 ––$8,709,348$13,337,289$2,248,966$2,725,777$120.83$121.14$555,863,000$7.10

(1) Foreachfiscalyear,representsamountreportedforourCEO(s)andaverageamountreportedforournon-CEONEOs,ineachcaseintheTotalcolumnofthe SummaryCompensationTable.OurNEOsforeachofthesefiscalyearsareshownbelow.

YearCEO(s)Non-CEONEOs 2024DeonStanderDannyAllouche,GregoryLovins,MitchellButier,FranciscoMeloandRyanYost 2023DeonStander/MitchellButierGregoryLovins,FranciscoMelo,DeenaBaker-NelandNicholasColisto 2022MitchellButierDeonStander,GregoryLovins,DeenaBaker-NelandIgnacioWalker 2021MitchellButierDeonStander,GregoryLovins,DeenaBaker-NelandIgnacioWalker 2020MitchellButierDeonStander,GregoryLovins,AnneHillandSusanMiller

(2) AmountsrepresentCompensationActuallyPaidtoourCEO(s)ortheaverageCompensationActuallyPaidtoournon-CEONEOs,ineachcasewhichrepresents amountsreportedintheTotalcolumnoftheSummaryCompensationTablefortheapplicablefiscalyear.For2024,amountswereadjustedasshownbelow. Fair valueorchangeinfairvalue,asapplicable,ofequityawardsintheCompensationActuallyPaidcolumnswasdeterminedasfollows:(i)forRSUs,theclosingprice ofourcommonstockonthefiscalyear-enddate,or,inthecaseofvestingRSUs,theclosingpriceofourcommonstockontheapplicablevestingdate;(ii)forthe performanceconditioncomponentofPUs,thesamevaluationmethodologyasRSUsexceptthatyear-endvaluesweremultipliedbyafactorreflecting achievementoftheprobableoutcomeoftherespectivecumulativeEVAperformanceobjectiveasoftheapplicablemeasurementdate;(iii)forthemarketcondition componentofPUsandforMSUs,usingtheMonte-Carlosimulationmethodtoestimatetheprobabilityofachievingtherespectiverelativeandabsolute TSR performanceobjective,respectively,asoftheapplicablemeasurementdate;and(iv)forstockoptions,usingtheBlack-Scholespricingmodelasof theapplicable measurementdate.ForinformationontheinputstoourMonte-Carlosimulations,seefootnote(2)toour2024SummaryCompensationTable.Forpurposesof theseadjustments,awardstoretirement-eligibleNEOsareconsideredvestedonlyatthetimeofretirement.

2024

AdjustmentsStander Averageof Non-CEONEOs

DecreaseforamountsreportedunderStockAwardsandOptionAwardscolumnsin2024SummaryCompensationTable$(6,643,355)$(2,040,463)

IncreasebasedonASC718fairvalueofawardsgrantedduringfiscalyear2024thatremainedunvestedasoffiscalyear-end2024, determinedasoffiscalyear-end2024

Increase/DecreasebasedonASC718fairvalueofawardsgrantedduringfiscalyear2024thatvestedduringfiscalyear,determined asofvestingdate

6,166,7311,832,833

Decreaseforawardsgrantedduringpriorfiscalyearsthatwereoutstandingandunvestedasoffiscalyear-end2024,determined basedonchangeinASC718fairvaluefrompriorfiscalyear-endtofiscalyear-end2024(1,677,949)(1,272,523)

Decreaseforawardsgrantedduringpriorfiscalyearsthatvestedduringfiscalyear2024,determinedbasedonchangeinASC718 fairvaluefrompriorfiscalyear-endtovestingdate (273,463)(297,664)

DecreaseforchangeintheactuarialpresentvaluesreportedunderChangeinPensionValueandNQDCEarningscolumnof2024 SummaryCompensationTable –(3,208)

Increase/Decreaseforservicecostand,ifapplicable,priorservicecost,forpensionplans––TotalAdjustments $(2,428,036)$(1,781,025)

(3) PeerGrouprepresentstheDowJonesU.S.ContainersandPackagingIndex.

(4) AdjustedEPSisanon-GAAPfinancialmeasurereconciledfromGAAPinAppendixAofthisproxystatement.

ThegraphsbelowcomparetheCompensationActuallyPaid(CAP)toourCEO(s)andtheaverageCAPtoournonCEONEOswithour(i)TSRandPeerGroupTSR,(ii)netincomeand(iii)adjustedEPS,ineachcaseforthelastfivefiscal years.TSRamountsassume$100investedonDecember31,2020andreinvestmentofdividends.

ReflectingtheCompensationCommittee’sphilosophyofpayingforperformanceanddeliveringthemajorityof executivecompensationusingLTIawardsprimarilytiedtoourstockpriceandTSR,theCAPtoourNEOswas generallyalignedwithourTSRperformance. From2020to2022,CEOandaveragenon-CEONEOCAPwasaligned withourTSR.WhileourTSRmodestlyincreasedin2023andtheCAPtoMr.Butierincreasedaswell,theaverageCAP toournon-CEONEOsdecreasedduetotheimpactoftherequiredequityandpensionadjustments.OurTSRmodestly decreasedin2024,withtheCAPtoMr.StanderslightlyincreasinginhisfirstfullyearasCEOandtheaverageCAPto ournon-CEONEOssignificantlyincreasingprimarilyasaresultoftheinclusionofourExecutiveChairman,whose compensationwassubstantiallyhigherthanthatofourothernon-CEONEOs.Webelievethattheinclusionofboth absoluteandrelativeTSRasperformanceobjectivesinourannualLTIawardstoNEOs,whichgenerallycomprisethe majorityoftheircompensation,ensuresongoingalignmentofCAPtoourTSRperformance.

Netincomeduringthe2020-2025perioddidnotdirectlyalignwithCAP,includingasaresultoftheimpactstoCAP describedabove.CAPislesssensitivetonetincomebecauseourexecutivecompensationprogramprioritizeslongertermequitycompensationprimarilytiedtoourstockpriceandTSRandsecondarilytocumulativeEVA,eachofwhichwe expectwillcontinuetohaveamuchgreaterimpactonCAP.

OutsideofourTSRperformance,webelievethatadjustedEPSisthemostimportantfinancialmeasurethattiesthe compensationofNEOstoourperformance.AdjustedEPSistheprimarydriverofstockholdervaluecreation,themeasure weusetoprovideguidancetoourinvestorsonourannualperformance,andtheperformanceobjectivethatcomprises 60%oftheAIPfinancialmodifierforparticipatingCorporateNEOs.Despiteitsimportance,theimpactofadjustedEPSon CAPismoderatedbythemuchstrongercorrelationCAPhaswithourstockpriceandTSRperformanceasaresultofthe emphasisonLTIawardsinourexecutivecompensationprogram.

Payvs.PerformanceFinancialPerformanceMeasures

Webelievethefinancialperformancemeasuresshownbelow,allofwhichareperformanceobjectivesusedinour executivecompensationprogram,werethemostimportantinlinkingCAPtoourNEOsfor2024.Foradditional informationregardingthesemeasures,includingreconciliationsofnon-GAAPfinancialmeasuresfromGAAP,seethe CompensationandDiscussionAnalysis andAppendixAsectionsofthisproxystatement.

•AbsoluteandRelativeTSR

•AdjustedEPS

•CumulativeEVA

•AdjustedSalesGrowth

•AdjustedFreeCashFlow

CEOPAYRATIO

With70%ofour2024revenuesoriginatingoutsidetheU.S.and40%ofourrevenuesoriginatinginemerging markets(LatinAmerica,EasternEurope,MiddleEast/NorthernAfricaandmostcountriesinAsiaPacific),ouremployees arelocatedinmorethan50countriestobestserveourcustomers.Atyear-end2024,83%ofouremployeeswere locatedoutsidetheU.S.and66%werelocatedinemergingmarkets,wheremediancompensationissubstantiallylower thanitisintheU.S.

Thechartsbelowshowthedemographicsofourglobalworkforcebyregionandfunction.Atyear-end2024,more than19,000ofourapproximately35,000employeeswereinAsiaPacific,servingourcustomersintheregion.Inaddition, morethan22,000employeesatthattimeworkedintheoperationsofourmanufacturingfacilitiesorinpositionsdirectly supportingthemfromotherlocations.

Weoffermarket-based,competitivewagesandbenefitsinthemarketswherewecompetefortalent.Allofour employeeswerepaidatleasttheapplicablelegalminimumwage,and99%ofouremployeeswerepaid above the applicablelegalminimumwageatyear-end2024.

2024PAYRATIO

•The2024totalcompensationofourmedianemployee(amongallemployeesexceptourCEO)was$17,126.

•The2024totalcompensationofourCEO,asreportedintheTotalcolumnofthe2024 SummaryCompensation Table,was$9,853,372.

•Basedonthisinformation,areasonableestimateofthe2024ratiooftheannualtotalcompensationofourCEO totheannualtotalcompensationofourmedianemployeewasapproximately575to1.

WecalculatedthisratiobasedonSECrulesandguidance,whichallowforcompaniestousevaryingmethodologies toidentifytheirmedianemployee.Othercompaniesmayhavedifferentworkforcedemographicsandemploymentand compensationpracticesandmayutilizedifferentmethodologies,exclusions,estimatesandassumptions.Asaresult,their CEOpayratiosmaynotmeaningfullycomparetoours.

IDENTIFICATIONOFMEDIANEMPLOYEE

Becausetherewerenosignificantchangestoouremployeepopulationorcompensationarrangementsin2024that wouldimpactourCEOpayratiodisclosure,weusedthesamemedianemployeeasinprioryear.Toidentifythis employeein2023,weconsideredannualbasecompensation,whichistheprincipalcompensationelementforthevast majorityofouremployeesglobally.Wemeasuredcompensationforpurposesofdeterminingthemedianemployeeusing the12-monthperiodendedDecember31,2023,makingnocost-of-livingadjustments.

WeselectedDecember19,2023asthedateonwhichtodetermineourmedianemployee.Asofthatdate,wehad 34,472employees,28,743ofwhichwerelocatedoutsidetheU.S.and22,751ofwhichwerelocatedinemerging markets.Weutilizedthedeminimisexemptiontoexcludethefollowingcountriesrepresentingnomorethan5%ofour globalpopulationintheaggregate:Kenya(15employees),Mauritius(18employees),Pakistan(345employees), Indonesia(473employees)andSriLanka(523employees),representingapproximately0.04%,0.05%,1.0%,1.37%and 1.52%,respectively,ofourglobalworkforceatthattime.

88 2025ProxyStatement | AveryDennisonCorporation

Todetermineourmedianablegroup,weusedastatisticalsamplingapproachknownasstratifiedsamplingto concentrateonmedianableemployees,whichwerethosewithinanarrowrangeoftheestimatedmedianannualsalaryof $13,017,becausetheseemployeeswereallreasonablylikelytobeourmedianemployee.Weidentified405employees withanannualsalarywithin$500ofthisamount.BecauseemployeesfromChinarepresentedapproximately46%ofthe medianablegroup,wenarrowedthemedianablegrouptothose185employees.Finally,weidentifiedthesixemployees whohadthepotentialtobeourmedianemployeebyanalyzingadditionalqualitativeandquantitativecharacteristics, includingpayvolatility.

MEDIANEMPLOYEECOMPENSATION

Ourmedianemployeewasafull-time,salariedemployeeworkingatamanufacturingfacilityinChina,with2024base compensationof$13,095.Forpurposesofthisdisclosure,weconvertedtheemployee’sbasecompensationfrom ChineseYuantoU.S.dollarsusingtheaveragemonthlyexchangerateduring2024of0.13919020.

Todeterminethe2024totalcompensationof$17,126forourmedianemployee,wecalculatedtheemployee’s compensationconsistentwithhowwedeterminedourCEO’stotalcompensationforthe 2024SummaryCompensation Table.

PROPOSAL3–RATIFICATIONOFAPPOINTMENTOF INDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TheAuditCommittee–whichisdirectlyresponsiblefortheappointment,compensation(includingauditand non-auditfees)andevaluationoftheindependentregisteredpublicaccountingfirmthatauditsourfinancialstatements andinternalcontroloverfinancialreporting–hasappointedPricewaterhouseCoopersLLP(PwC)forfiscalyear2025and ourBoardisseekingstockholderratificationoftheappointment.

StockholderratificationisnotrequiredbyourBylawsorapplicablelawsandregulations.However,ourBoard annuallysubmitstheappointmentforstockholderratificationaspartofourstronggovernanceprogram.Ifstockholders werenottoratifytheappointment,theAuditCommitteewouldreconsiderwhetherornottoretainPwC,butcould determinetodosoinitsdiscretion.Inaddition,eveniftheappointmentisratified,theAuditCommitteecould subsequentlyappointadifferentindependentregisteredpublicaccountingfirmwithoutstockholderratificationifthe committeeweretodeterminethatdoingsowasinthebestinterestsofourcompanyandstockholders.

RepresentativesofPwCwillbeavailableduringtheAnnualMeetingtoanswerquestionsfromstockholders.

AuditCommitteeEvaluation

IndeterminingwhethertoreappointPwC,theAuditCommitteeconsideredthefirm’squalifications,performance, independenceandtenure,aswellastheperformanceoftheengagementteamservingourcompany;thequalityofits discussionswithrepresentativesofPwC;andthefeeschargedbyPwCforthequalityandscopeofservicesprovided.In connectionwiththe2025appointment,theAuditCommitteeconsidered,amongotherthings,thefactorsdescribed below.

• AuditQuality –ThequalityofPwC’sauditandnon-auditworkbasedonitsoversightofitsworkproduct, consideringthefirm’s(i)compliancewithaccountingandauditingprofessionalstandardsandregulatory requirements;(ii)applicationofitsunderstandingofourbusinessesandthefinancialenvironmentsinwhichwe operateinidentifyingandrespondingtorisksrelevanttoitsaudit;(iii)identificationandresolutionofissuesina timelymanner;and(iv)integrity,objectivityandprofessionalskepticisminperformingitsaudits,aswellasits 2024AuditQualityReportprovidedtotheAuditCommitteeinFebruary2025

• Performance –PwC’seffectivenessduringitsprior-yearaudits,notingitsstrongperformancein2024,with improvedauditplanningandenhancedengagementwithourmanagementandfinancepersonnel

• QualitativeReview –TheresultsofoursurveyofmembersofmanagementandtheAuditCommitteeevaluating PwC’s(i)expertiseandresources;(ii)qualityandtimelinessofauditplanning;(iii)communicationandinteraction; (iv)independence,objectivityandprofessionalskepticism;and(v)valuefromfees,notingidentifiedstrengthsand accomplishedimprovements,aswellassuggestionsforfurtherimprovement

• Self-Assessment –PwC’sself-assessmentofitsperformanceanditssatisfactionoftheserviceneedsand expectationsoftheAuditCommitteeandmanagementduringthe2024audit,includingitscommitmentto continuousimprovement

• RegulatoryReviews –ExternaldataonPwC’sauditqualityandperformance,includingthemostrecentPublic CompanyAccountingOversightBoard(PCAOB)reportonthefirmprovidedtotheAuditCommitteeinOctober 2024

• Fees –ThereasonablenessofPwC’sfeesforauditandnon-auditservices,bothonanabsolutebasisandrelative topeerfirms,includingmanagement’smostrecentbenchmarkingin2023ofourauditfeesrelativetothoseof peercompanies,thekeydriversofvariancesandthefirm’stargetedareasofincreasedproductivity

• Independence –PwC’sprocessestoensureitmaintainsindependence,includingrequiredindependencetraining forallpartnersandstaffandaglobalindependencesystemthatmonitorstheirpersonalaffiliations;written disclosuresfromthefirm;andtheindependencelettersrequiredbythePCAOB

• Tenure –PwC’stenureasourindependentauditor,reflectingonthefeedbackfromcertainofourinvestors counterbalancedagainstthebenefitsofhavingalonger-tenuredauditor,aswellasthecontrolstheAudit CommitteeandPwChaveinplacetomitigatepotentialindependencerisk.TheAuditCommitteelastdeliberated onwhethertoconductaformalprocesstoconsidertheselectionofanewindependentauditorin2022,

determiningnottodosogivenitscontinuedoverallsatisfactionwithPwC’seffectivenessandperformance;our multipleengagementsofotherregisteredpublicaccountingfirmstoperformvariousnon-auditservicesforour company,whichcouldimpairtheirindependenceandlimittheirabilitytoserveasourindependentauditor;the regularrotationofPwC’sleadengagementpartnerandleadrelationshippartner;andpotentialriskstoaudit qualityandtimeliness.

Havingdeterminedthatitisinthebestinterestofourcompanyandstockholders,theAuditCommitteehasappointed PwCasourindependentregisteredpublicaccountingfirmforfiscalyear2025.

BoardRecommendation

OurBoardrecommendsthatyouvoteFORratificationoftheappointmentofPwCas ourindependentregisteredpublicaccountingfirmforfiscalyear2025.

Properlydatedandsignedproxieswillbesovotedunlessyouspecifyotherwise.

AUDITMATTERS

AUDITORQUALIFICATIONSANDTENURE

PwChasbeenourindependentregisteredpublicaccountingfirmsince1998andservedinthatcapacityduringfiscal year2024.Throughitspredecessorentities,thefirmhasservedasourindependentauditorsinceatleast1954basedon recordswehavebeenabletolocate;wehavebeenunabletodeterminetheexactyearPwCbeganservinginthis capacity.PwCiswell-qualifiedtocontinueservingasourindependentregisteredpublicaccountingfirm,understandsour operationsandaccountingpractices,andmaintainsrigorousprocedurestoensureauditorindependence.

Initsannualconsiderationoftheappointmentoftheindependentregisteredpublicaccountingfirm,theAudit CommitteeconsiderswhetherPwCisbestpositionedtoprovidetheserviceseffectivelyandefficientlyduetoits familiaritywithouroperations,businesses,accountingpoliciesandpractices,internalcontrols,andfinancialand informationtechnologysystems,aswellaswhethertheservicesenhanceourabilitytomanagecontrolrisksandmaintain auditquality.ThecommitteereappointedPwCfor2025becauseitcontinuestobelievethatPwCprovideshigh-quality auditservicesonthescaleandwiththeeffectivenessandindependencethecommitteerequires,givingconsiderationto thefactorsshownbelow.

• AuditQualityandPerformance –PwChasdeepinstitutionalknowledgeregardingouroperations,businesses, andaccountingpoliciesandpractices,optimizingitspeopleandtechnologytodeliverenhancedquality assuranceandprovidegreatercustomization,timesavingsandinsightsfromtheaudit

• GlobalScale –PwChasapresencewithresourcesinvirtuallyallofthecountriesinwhichwedobusiness, enablingthefirmtoperformstatutoryauditworkonoursubsidiaryaccounts

• Capability –PwC’scapabilityandexperienceunderstandingthebreadthandcomplexityofourglobaloperations

• FreshPerspective –Theappointmentsofanewleadengagementpartnerforthe2024auditandanewlead relationshippartnerin2022,eachofwhomhasbroughtfreshperspective

• Efficiency –PwCbringscustomizedknowledgeusingjudgmenttailoredtoouraudits,allowingforsignificant timesavings

• Cost-Effectiveness –PwC’sabilitytocost-effectivelyperformaudit,audit-related,taxcomplianceandtax planningservices

TheAuditCommittee’sconsiderationofPwC’stenureasourindependentauditorisdiscussedaboveinAudit CommitteeEvaluation.Inconductingitsregularreviewofwhethertoappointanewindependentregisteredpublic accountingfirm,amongotherthings,theAuditCommitteeconsidersthefactthatonboardinganewfirmwouldrequirea significanttimecommitmentonthepartofmanagement,potentiallydistractingfromtheparamountfocusonfinancial reportingandinternalcontrols,withoutnecessarilyincreasingauditquality.

PwCregularlyprovidestheAuditCommitteeandmanagementwithaccounting/financialreportinginsightsandbest practicesrelevanttoourbusiness,aswellasadvancenoticeoflegislativeandregulatorydevelopmentsthatcouldhave asignificantimpactonourcompany. In2024,thisknowledgesharingincludedtopicssuchastheaccountingfor hedgetransactions,artificialintelligenceandthefinancialreportingforsupplychainfinancing,leases,thePillarII globalminimumtaxregime,anddigitalassets.

TheAuditCommitteehasseveralcontrolsinplacetomitigateanypotentialindependenceriskrelatedtoauditor tenure,includingthosedescribedbelow.

• AnnualReviewofPerformanceandIndependence –Inadditiontoitsongoingassessmentandfeedback providedtoPwC,theAuditCommitteeevaluatesthefirm’sperformanceandindependence,aswellasother factorssuchasauditortenure,indeterminingwhetherornottoreappointthefirmforthefollowingyear

• LimitsonNon-AuditServices –TheAuditCommitteeassessestheimpactprovidingnon-auditservicesmay haveonPwC’sindependenceeachtimeitapprovesthefirm’sprovisionoftheseservices,aswellasduringits annualassessmentofthefirm’sindependence;ourcompanyregularlyusesotherindependentregisteredpublic accountingfirmstoprovidestatutoryauditandnon-auditservices,engagingPwConlyifpermissibleandwhere doingsoconferstimeandcostsavingsgivenitsroleasourindependentauditor

2025ProxyStatement | AveryDennisonCorporation

• RegularConsiderationofAuditorRotation –TheAuditCommitteeregularlyevaluateswhethertoconducta processformallytoconsiderotherindependentregisteredpublicaccountingfirms,havingmostrecentlydoneso in2022

• ExecutiveSessions –TheAuditCommitteemeetsregularlybothwithPwCwithoutmanagementpresentand withmanagementwithoutPwCpresent

• LeadEngagementPartnerRotationandSelection –Anewleadengagementpartnerisdesignatedatleast everyfiveyears,withthecurrentpartnerhavingbeendesignatedinadvanceofthe2024audit.TheAudit Committeeinterviewedthepartnerpriortohisdesignationandwasdirectlyresponsibleformakingtheselection, inconsultationwithmanagementandrepresentativesfromPwC.

• OversightbyLeadRelationshipPartner –PwCdesignatesaseparateleadrelationshippartnertoprovide additionalassuranceandobjectiveoversightwhomeetsatleastannuallywiththeAuditCommitteeandis availableasneededfordirectconsultation.Anewleadrelationshippartnerwasdesignatedin2022,havingbeen selectedbytheAuditCommitteeinconsultationwithPwCleadership. Theadditionaloversightandescalation providedbytheleadrelationshippartnerallowthefirmtoaddressissuesthatmayarise,strengthenthe independenceoftheauditengagementteamandhelpensurecontinuousimprovementinservicequality.

AUDITORINDEPENDENCE

PwChasadvisedusthatneitherthefirmnoranymemberthereofhasanyfinancialinterest,directorindirect,inour companyoroursubsidiaries,confirmingtotheAuditCommitteethatitisincompliancewiththerules,standardsand policiesofthePCAOBandtheregulationsoftheSECgoverningauditorindependence.InFebruary2025,theAudit Committeereviewedthenon-auditservicesprovidedbyPwCduring2024,includingtherelatedfeesassociatedwith previouslypre-approvedservices,inassessingwhetherthefirm’sprovisionoftheseservicesimpairedPwC’s independence.

TheAuditCommitteediscussedwithPwCitsindependencefromourcompany,Boardandmanagementand concludedthatPwCwasindependentduring2024.

AUDITORCOMPENSATION

TheAuditCommitteehasadoptedproceduresforthepre-approvalofallauditandnon-auditservicesandfees providedbytheindependentregisteredpublicaccountingfirm.Pre-approvalproceduresincludereviewingandapproving aplanforauditandpermittednon-auditservices,whichincludesadescriptionof,andestimatedfeesfor,eachcategory ofauditandnon-auditservices.AdditionalAuditCommitteeapprovalisrequiredforservicesnotpre-approvedinthe initialplanorforfeesexceedingthebudgetedamountforaparticularcategoryofservices.TheAuditCommitteehas delegatedinterimapprovalauthoritytoitsChairforadditionalservicesthatmaybecomenecessary,withapprovalbythe entireAuditCommitteeatasubsequentmeeting.

Inthefourthquarterof2023,theAuditCommitteeapprovedthe(i)audit,audit-relatedandotherservicesPwCcould performin2024and(ii)permissibletaxservicesthefirmcouldprovideduringtheyear.TheAuditCommittee pre-approvedPwC’sfeesforaudit,audit-related,taxcomplianceandtaxplanningservicesinApril2024(having approvedinterimfeesearlierintheyearforservicesthroughthattime),receivedupdatesonyear-to-datefeesincurredin JulyandNovember2024,andassessedthefinalfeesinconnectionwithitsreviewofauditresultsinFebruary2025.

AUDITFEES

Infiscalyears2024and2023,PwCprovidedtheservicesshownbelowforourcompany–allofwhichwere approvedbytheAuditCommitteeinaccordancewiththeproceduresdescribedabove–forwhichwepaidthefirmthe feesindicated.

20242023

AuditFees(1) $10,137,000$9,623,000

Audit-RelatedFees(2) 375,000207,000

TaxFees:

TaxCompliance(3) 2,803,0002,940,000 TaxPlanning(4) 1,045,000900,000

AllOtherFees(5) 17,00016,000

Total$14,377,000$13,686,000

(1) FeesforservicesperformedtocomplywiththestandardsestablishedbythePCAOB,includingtheauditsofour financialstatementsandinternalcontroloverfinancialreporting;auditsinconnectionwithstatutoryfilings;andother servicesthattheprincipalindependentregisteredpublicaccountingfirmcanmosteffectivelyandefficientlyprovide, suchasproceduresrelatedtocomfortletters,consentsandreviewsofourSECfilings.

(2) Feesassociatedwithassuranceandrelatedservicestraditionallyperformedbytheindependentregisteredpublic accountingfirmandreasonablyrelatedtotheperformanceoftheauditorreviewofourfinancialstatements,including assistanceinfinancialduediligencerelatedtoacquisitionsanddivestituresandtheauditorcomplianceservicesnot requiredbyapplicablestatutesorregulations.Thiscategoryalsoincludesauditsofpensionandotheremployeebenefit plans,aswellastheauditorreviewofinformationtechnologysystemsandinternalcontrolsunrelatedtotheauditof thefinancialstatements.

(3) Feesassociatedwithtaxcompliancesuchaspreparationoftaxreturnsinforeignjurisdictions,taxauditsandtransfer pricingdocumentation.

(4) FeesforU.S.andnon-U.S.taxplanning,aswellastaxplanningrelatedtorestructuringactions,acquisitionsand divestitures.

(5) Feesforanyservicesotherthanthosedescribedintheabovecategories.Inbothyears,includedsubscriptionsand licensestoaccountingandtaxresourcesandotherpermissibleservices.

AUDITCOMMITTEEREPORT

COMPOSITIONANDQUALIFICATIONS

TheAuditCommittee(referredtointhisreportasthe“Committee”)ofourBoardiscomposedofthedirectorsnamed attheendofthisreport,eachofwhommeetstheenhancedindependenceandexperiencestandardsforauditcommittee membersrequiredbySECrulesandNYSElistingstandards.OurBoardhasdeterminedallmemberstobefinancially literateanddesignatedWardDicksonandPatrickSiewerteachasan“auditcommitteefinancialexpert”underapplicable SECregulations.MembersoftheCommitteeareprohibitedfromsittingontheauditcommitteeofmorethantwoother publiccompaniesandallmembersareincompliancewiththisrestriction.

PRIMARYRESPONSIBILITIES

TheCommitteehasawrittencharterapprovedbyourBoard,whichisavailableunder GovernanceDocuments inthe investorssectionofourwebsite.TheCommitteeannuallyreviewsitscharterandconsiderswhethertorecommend changestoourBoardforapproval.ThecharterwasmostrecentlyamendedinOctober2024.

Duringfiscalyear2024,theCommitteeprimarilyperformedtheactivitiesdescribedbelowonbehalfofourBoard.

•Reviewedanddiscussedwithmanagementandtheindependentregisteredpublicaccountingfirmourquarterly andannualfinancialresults,earningsreleasedocumentationandtherelatedreportswefilewiththeSEC

•Reviewedanddiscussedwithmanagementandtheindependentregisteredpublicaccountingfirmourinternal controlsreportandtheindependentregisteredpublicaccountingfirm’sattestationthereof

•Evaluatedthequalifications,performanceandindependenceoftheindependentregisteredpublicaccounting firmandmetwithitsrepresentativestodiscussthescope,budget,staffingandprogressoftheaudit

•Maintainedresponsibilityforthecompensationandoversightoftheworkoftheindependentauditorforthe purposeofpreparingorissuingitsauditreportorrelatedwork,aswellasforapprovingthecompensationand engagementofanyotherregisteredpublicaccountingfirmpreparingorissuinganauditreportorrelatedworkor performingotherauditorattestservices

•SupervisedourInternalAuditleaderwithrespecttothescope,budget,staffingandprogressoftheinternalaudit andevaluatedhisindividualperformance,aswellastheperformanceofthefunction

•Discussedsignificantfinancialriskexposures,includingourcybersecurityriskmanagementprogram,risks relatedtoourcompany’sinformationtechnologycontrolsandsecurity,andthestepstakenbymanagementto monitorandcontroltheseexposures

OVERSIGHTOFCONSOLIDATEDFINANCIALSTATEMENTS

Managementisresponsibleforourconsolidatedfinancialstatements,accountingandfinancialreportingpolicies, internalcontroloverfinancialreporting,anddisclosurecontrolsandprocedures.TheCommitteeappointedthe independentregisteredpublicaccountingfirmofPricewaterhouseCoopersLLP(PwC)toprovideaudit,audit-relatedand taxcomplianceservices,withlimitedtaxplanningandotherservicestotheextentapprovedbytheCommittee.PwC performedindependentauditsofour2024consolidatedfinancialstatementsandinternalcontroloverfinancialreporting inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(PCAOB),issuinganopiniononthe conformityofthosefinancialstatementswithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica (GAAP).TheCommittee’sresponsibilityistomonitorandoverseeouraccountingandfinancialreportingprocessesand theauditsofourconsolidatedfinancialstatementsandinternalcontroloverfinancialreporting.Themembersofthe Committeearenotprofessionallyengagedinthepracticeofauditingoraccountingandrelywithoutindependent verificationontheinformationprovidedandrepresentationsmadebymanagementandPwC.

TheCommitteereviewedanddiscussedourconsolidatedfinancialstatementsandrelatedfootnotesforthefiscalyear endedDecember28,2024–includingourcriticalaccountingpoliciesandmanagement’ssignificantestimatesand judgments–withmanagementandPwC,aswellasPwC’sreportandunqualifiedopiniononitsaudits.Management representedtotheCommitteeandPwCthatourconsolidatedfinancialstatementswerepreparedinaccordancewith GAAPandPwCdiscussedthemattersrequiredbyAuditingStandardNo.1301, CommunicationswithAuditCommittees

BasedontheCommittee’sreviewanddiscussionswithmanagementandPwC,aswellastheCommittee’sreviewof therepresentationsofmanagementandtheauditreportandunqualifiedopinionofPwC,theCommitteerecommended thatourBoardapproveourAnnualReportonForm10-KforthefiscalyearendedDecember28,2024.

OVERSIGHTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TheCommitteeisresponsibleforappointingtheindependentregisteredpublicaccountingfirmandmonitoringand overseeingitsqualifications,compensation,performanceandindependence.Inthiscapacity,theCommitteereviewed withPwCtheoverallscopeofservicesandfeesforitsauditandmonitoredtheprogressoftheauditinassessingour compliancewithSection404oftheSarbanes-OxleyActof2002,includingthefirm’sfindingsandrequiredresources.

PwCprovidedtotheCommitteethewrittendisclosuresandindependencelettersrequiredbythePCAOBregarding communicationsconcerningindependence–includingRule3524, AuditCommitteePre-approvalofCertainTaxServices, andRule3526, CommunicationwithAuditCommitteesConcerningIndependence.TheCommitteehasapolicyrequiring pre-approvaloffeesforaudit,audit-related,taxcomplianceandtaxplanningservicesandhasconcludedthatPwC’s provisionoflimitednon-auditservicestoourcompanyin2024didnotimpairitsindependence.TheCommitteediscussed withPwCitsindependencefromourcompany,BoardandmanagementandconcludedthatPwCwasindependent duringfiscalyear2024.

Underitscharter,theCommitteeisrequiredtoregularlyconsiderwhetheritisappropriatetochangetheindependent registeredpublicaccountingfirm.TheCommitteetodatehasdeterminedtoretainPwCnotingthatthefirmhas continuedtoexerciseindependenceinchallengingmanagement,effectivelyconductedhigh-qualityauditsand consistentlyimprovedservicedelivery.

TheCommitteehasdeterminedthattheappointmentofPwCasourindependentregisteredpublicaccountingfirm forfiscalyear2025isinthebestinterestofourcompanyandstockholders.TheCommitteehasappointedPwCinthis capacityandourBoardhasrecommendedthatstockholdersratifytheappointment.

OVERSIGHTOFINTERNALAUDIT

TheCommittee’sresponsibilityistomonitorandoverseeourinternalauditfunction,reviewingthesignificantaudit resultsreportedtomanagementandmanagement’sresponsesthereto.Inthiscapacity,theCommitteereviewswithour InternalAuditleadertheoverallscopeandbudgetfortheinternalaudit,andregularlymonitorstheprogressofthe internalauditinassessingourcompliancewithSection404oftheSarbanes-OxleyActof2002,includingkeyfindings.

EXECUTIVESESSIONS

TheCommitteeregularlymeetsseparatelyinexecutivesessionwithoutmanagementpresentwitheachofour InternalAuditleaderandPwCtoreviewanddiscusstheirevaluationsoftheoverallqualityofouraccountingandfinancial reportingandinternalcontrol.TheCommitteealsoregularlymeets,withoutPwCpresent,withmanagement,ourCFO andourController,andmeetsasneededinexecutivesessionwithothermembersofmanagementtodiscusssignificant exposuresimpactingourfinancialstatementsandaccountingpolicies.

STOCKHOLDERFEEDBACK

TheCommitteehasestablishedproceduresforthereceipt,retentionandtreatment,onaconfidentialbasis,of complaintsregardingouraccounting,internalcontrolsandauditingmatters.See ComplaintProceduresforAccounting andAuditingMatters inthe Governance sectionofthisproxystatement.TheCommitteewelcomesfeedbackregardingits oversightofourauditprogram.StockholdersmaycommunicatewiththeCommitteebywritingtotheAuditCommittee Chair,c/oCorporateSecretary,8080NortonParkway,Mentor,Ohio44060.

Ms.MejiaandMr.DicksonwereappointedtotheCommitteeinFebruaryandJune2024,respectively.Mr.Lopezand formerdirectorMs.SullivanservedontheCommitteethroughAprilandDecember2024,respectively,andneitherof themparticipatedinthereview,discussionsandrecommendationreflectedinthisAuditCommitteeReport.

PROPOSAL4–STOCKHOLDERPROPOSALFORSTOCKHOLDERAPPROVAL REQUIREMENTFOREXCESSIVEGOLDENPARACHUTES

JohnR.Chevedden,astockholderresidingat2215NelsonAvenue,No.205,RedondoBeach,California90287who hasbeneficiallyownednofewerthan15sharesofourcommonstocksinceOctober15,2021(the“Proponent”),has informedusthatheintendstopresenttheproposalsetforthbelowduringtheAnnualMeeting.IftheProponentorhis qualifiedrepresentativeattendsandproperlypresentstheproposalforavote,thenthestockholderproposalwillbevoted uponduringtheAnnualMeeting.

InaccordancewithSECrules,theproposalandsupportingstatementassubmittedbytheProponentarepresented verbatimbelow.Theproposalandsupportingstatementmaycontainassertionsthatwebelieveareincorrect.Wehave notattemptedtorefuteallassertionsorcorrectanyerrorsintheproposalorsupportingstatement,andwedisclaimall responsibilityfortheircontent,includingtheothersourcesreferencedtherein.

ForthereasonssetforthintheoppositionstatementfollowingtheProponent’sproposal,ourBoardopposesits approvalandrecommendsthatyouvote AGAINST it.

Proposal4–ShareholderApprovalRequirementforExcessiveGoldenParachutes

ShareholdersrequestthattheBoardseekshareholderapprovalofanyseniormanager’sneworrenewedpay packagethatprovidesforseveranceorterminationpaymentswithanestimatedvalueexceeding2.99timesthesum oftheexecutive’sbasesalaryplustargetshort-termbonus.ThisproposalonlyappliestotheNamedExecutive Officers.ThisprovisionshallatleastbeincludedintheGovernessGuidelinesoftheCompany.

“Severanceorterminationpayments”includecash,equityorotherpaythatispaidoutorvestsduetoasenior executive’sterminationforanyreason.Paymentsincludethoseprovidedunderemploymentagreements,severance plans,andchange-in-controlclausesinlong-termequityplans,butnotlifeinsurance,pensionbenefits,ordeferred compensationearnedandvestedpriortotermination.

“Estimatedtotalvalue”includes:lump-sumpayments;paymentsoffsettingtaxliabilities,perquisitesorbenefits notvestedunderaplangenerallyavailabletomanagementemployees,post-employmentconsultingfeesoroffice expenseandequityawardsifvestingisaccelerated,oraperformanceconditionwaived,duetotermination.

TheBoardshallretaintheoptiontoseekshareholderapprovalaftermaterialtermsareagreedupon.

Thisproposalisrelevanteveniftherearecurrentgoldenparachutelimits.Alimitongoldenparachutesislikea speedlimit.Aspeedlimitbyitselfdoesnotguaranteethatthespeedlimitwillneverbeexceeded.Likethisproposal therulesassociatedwithaspeedlimitprovideconsequencesifthelimitisexceeded.Withthisproposalthe consequencesareanon-bindingshareholdervoteisrequiredforunreasonablyrichgoldenparachutes.

Thisproposalplacesnolimitonlong-termequitypayoranyothertypepay.Thisproposalthushasnoimpacton theabilitytoattractexecutivetalentanddoesnotdiscouragetheuseoflong-termequitypaybecauseitplacesno limitongoldenparachutes.Itsimplyrequiresthatoverlyrichgoldenparachutesbesubjecttoanonbinding shareholdervoteatashareholdermeetingalreadyscheduledforothermatters.

Thisproposalisrelevantbecausetheannualsayonexecutivepayvotedoesnothaveaseparatesectionfor approvingorrejectinggoldenparachutes.

Thisproposaltopicalsoreceivedbetween51%and65%supportat: FedEx(FDX) SpiritAeroSystems(SPR) AlaskaAir(ALK) AbbVie(ABBV) Fiserv(FISV)

OurBoard’sGovernanceandCompensationCommitteeshavecarefullyconsideredtheproposalandbelievethatitis unnecessaryandnotinthebestinterestsofourcompanyandstockholdersinlightofourexistingplans,policiesand practices,termination-relatedexecutivecompensationandotherconsiderations.OurBoardrecommendsthatyouvote AGAINST thisproposalforthereasonsstatedbelow.

TheproposalisunnecessarybecausewehavealreadyimplementedanExecutiveOfficerCashSeverance Policythatprovidesthatwewillnotpayanycashseverancetoexecutiveofficersexceeding2.99timesthesum ofbasesalaryplustargetAIPawardwithoutseekingstockholderratificationthereof.

TheCompensationCommitteeadoptedanExecutiveOfficerCashSeverancePolicy(the“CashSeverancePolicy”) effectiveJanuary31,2025providingthatwewillnotenterintoanynewemploymentagreementorseverance arrangementafterthepolicy’seffectivedatewithanexecutiveofficer(asdefinedundertheExchangeAct)ofour companyorestablishanynewseveranceagreement,plan,arrangementorpolicycoveringanysuchofficeraftersuch date,ineachcasethatprovidesforacashseverancepaymentinconnectionwithanyterminationofhisorher employmentexceeding2.99timesthesumofsuchofficer’sbasesalaryplustargetAIPawardwithoutseeking stockholderratificationofsuchagreement,plan,arrangementorpolicy.TheCashSeverancePolicywascarefullytailored tofurtherouroverallcompensationphilosophyofaligningexecutiveinterestswiththoseofourstockholdersand providingforappropriatestockholderoversight,whilebalancingtheneedtoensurewecanprovidemarket-competitive executivecompensation,includingintheeventoftermination,tocontinueattractingandretainingtalentedexecutive officers.OurBoardbelievesthatthistailoredpolicyistheappropriateapproachtoalignourexecutivecompensation programwithstockholdervaluecreation,ratherthantheoverlybroadpolicysoughtbytheProponent.

TheCompensationCommitteehasalsoapprovedanAmendedandRestatedKeyExecutiveChangeofControl SeverancePlanthat,amongotherthings,reducesourCEO’sseverancemultiplierfrom3.00timesto2.99timeshis annualbasesalaryandtargetAIPawardfortheyearoftermination,consistentwiththeCashSeverancePolicy.

Stockholdersalreadyhaveampleopportunitytoexpresstheirviewsonourexecutivecompensationthrough ourrobuststockholderengagementandannualsay-on-payvotes,bothofwhichreflectstrongsupportofour executivecompensationprogram.

Wesemiannuallyengagewithstockholderstosolicitfeedbackon,amongotherthings,ourexecutivecompensation program,offeringtoincludedirectorsasparticipantsinscheduledmeetings.Ourobjectivesaretomaintainregularand thoughtfulengagementtodirectlyobtaininvestorfeedback;continuetostrengthenourrelationshipswithkeyinvestors; andgatherperspectivestoidentifypotentialimprovementopportunities.OurBoardandmanagementbelievethat ongoingstockholderengagementfostersadeeperunderstandingofevolvinginvestorexpectationsandhelpsensurewe continuetoreflectbestpractices.

Ourstockholderengagementprogramseekstoidentifypotentialchangestoourexecutivecompensationprogram thataredirectlyresponsivetostockholderfeedbackandfurtheralignourincentiveswithstockholderexpectations.In 2024,wecontactedourtop35investorsduringtheproxyseasonandtheoff-season.Weengagedwithevery stockholderwhoacceptedourinvitationtomeetorotherwiserequestedameeting,andourLeadIndependentDirector ledthemajorityofouroff-seasonengagements.Duringthesemeetings,ourLeadIndependentDirector,Governance CommitteeChair,andmanagementansweredquestionsanddiscussedmattersofinvestorinterest.

Thefeedbackwehavereceivedfromstockholdersinrecentyearsregardingourexecutivecompensationprogramhas beenpositive,affirmingtheCompensationCommittee’sstrategyandthealignmentofpaywithperformance.Our stockholdershaveexpressedstrongsay-on-paysupport,withaverageapprovalinthepastfiveyearsof95%.

TheCompensationCommitteemakeschangestoourexecutivecompensationprogramasappropriatetoensureit alignswithourevolvingfinancialprofileandbusinessstrategiesandaddressfeedbackfromourinvestors.Webelieve thattheCompensationCommittee’sannualreviewofourAIPandLTIprogramsandtheactionsithastakenovertime demonstrateourcommitmenttopayingforperformanceandbeingresponsivetoinvestorfeedback.

OurBoardbelievesthatourstrongsay-on-payvoteresults,aswellasthepositivefeedbackreceivedduringour engagementwithinvestors,demonstrateoverallsupportofourexecutivecompensationprogramandarethemost effectivemethodsofprovidingstockholderswithavoiceonourexecutivecompensationprogram. Requiring additionalstockholderapprovalofspecificelementsofcompensationwouldplaceusatacompetitivedisadvantageandis unnecessary.

TheproposalwouldimpairtheCompensationCommittee’sabilitytoeffectivelystructureourexecutive compensationprogramandarrangements,whicharesubjecttorobustgovernanceoversight.Theproposalis overbroadanddiscouragestheuseofLTIawardsbyincludingthemwithintheproposedlimitontermination payments.

AprimarydifferencebetweentheCashSeverancePolicyadoptedbytheCompensationCommitteeandthepolicy soughtbytheProponentisthattheproposalwouldincludethevalueofequitythatisrealizeduponterminationin determiningwhetherstockholderapprovalisrequired.AdoptingtheproposalwoulddiscourageorlimitouruseofLTI awards,inhibitingourexecutivecompensationprogram’sobjectivestopayforperformanceandalignstockholderand executiveinterests.ItwouldalsoimposeanunduerestrictionontheabilityoftheCompensationCommitteetoestablish executivecompensationprogramsthatareconsistentwithmarketpracticesandstockholderexpectations.

Themajorityofthevalueofourexecutivecompensationisintheformoflong-termequityincentiveawards,with overlappingvestingschedulesandperformanceperiods.OurLTIawardsprovidevariableincentivecompensationthat enhancesthealignmentoftheinterestsofourexecutiveswiththoseofourstockholdersanddriveslong-termvalue creation.In2024,equityawardscomprised72%ofourCEO’stargetTDCand53%oftheaveragetargetTDCofour otherNEOs(excludingMr.Butier).TheannualLTIawardsgrantedtoNEOs(otherthanMr.Butier)in2024werefully performancebasedanddeliveredthroughPUsthatcliff-vestattheendofathree-yearperformanceperiod,subjecttothe achievementoftherespectivecumulativeEVAandrelativeTSRperformanceobjectivesestablishedfortheaward,and MSUsthatvestintranchesbasedonourabsoluteTSRover1-,2-,3-and4-yearperformanceperiods,withanaverage performanceperiodof2.5years.

TheCompensationCommittee,whichiscomposedentirelyofindependentdirectors,isbestsuitedtostructureand overseeourexecutivecompensationprogram,whichwebelieveisthoughtfullydesignedtolinkpayandperformance.The CompensationCommitteeregularlyconsultswithWTW,itsindependentcompensationconsultant,toreviewexternal benchmarkingdataandassistindevelopingtheelementsofourexecutivecompensationprogram,whichwebelieveare alignedwithstrongcorporategovernancepractices,currentmarketpracticesandourpay-for-performancephilosophy.

TheoverlybroadpolicysoughtbytheProponentwouldplaceusatacompetitivedisadvantagebylimiting ourabilitytoattractandretainexecutives.

Theproposalwouldsignificantlydisadvantageourabilitytoattractandretainhighlyqualifiedexecutiveofficers. Implementationoftheproposal,whichwouldsubjectLTIawardstotheproposed2.99timeslimit,wouldrequireakey componentofexecutiveemploymentofferstobecontingentonsubsequentstockholderapproval.Asaresult,top candidatescouldviewemploymentoffersastoouncertainandchoosetoseekemploymentatothercompaniesthatcan ensurereasonableseveranceandotherbenefitsupontermination.Webelievethatsuchapolicy(i.e.,requiring stockholderapprovalofcash,equityandotherterminationpayments)isuncommonamongthecompanieswithwhichwe competeforexecutivetalent,andtopcandidatesmayseekemploymentfromadirectcompetitororelsewhereupon learningthatsuchakeyaspectoftheiremploymentofferwouldrequirestockholderapproval.Asaresult,thisproposal wouldinterferewithourabilitytomaketimelycompetitiveoffersofemploymentforhighlyqualifiedexecutivetalent, whichwouldnegativelyimpactoureffortstoenhancestockholdervalueanddriveexecutionofourstrategiesthathave deliveredconsistentGDP+growthandtop-quartilereturns.

BoardRecommendation

OurBoardbelievesthatthepolicysoughtbytheProponentisunnecessaryand notinthebestinterestofourstockholders;itthereforerecommendsthatyouvoteAGAINSTtheproposal forastockholderapprovalrequirementforexcessivegoldenparachutes,ifproperlypresentedduringthemeeting.

Properlydatedandsignedproxieswillbesovotedunlessyouspecifyotherwise.

100 2025ProxyStatement | AveryDennisonCorporation

SECURITYOWNERSHIPINFORMATION

SECURITYOWNERSHIPOFMANAGEMENTANDSIGNIFICANTSTOCKHOLDERS

Thetablebelowshowsthenumberofsharesofourcommonstockbeneficiallyownedbyour(i)current directors,NEOs,andcurrentdirectorsandexecutiveofficersasagroupasoftheFebruary24,2025recorddateforthe AnnualMeetingand(ii)ourgreater-than-five-percent,or“significant,”stockholdersasoftherespectivedatesindicated.

Currentdirectors

BradleyA.Alford25,46023,31948,779*

MitchellR.Butier307,55350,637358,190*

WardH.Dickson–––*

AndresA.Lopez3,2161,8415,057*

MariaFernandaMejia

DeonM.Stander54,40618,90073,306*

WilliamR.Wagner1,481–1,481*

Non-directorNEOs

DannyG.Allouche18,6055,51524,120*

GregoryS.Lovins69,6537,10876,761* FranciscoMelo15,2302,12017,350*

RyanD.Yost2,1134,0256,138*

(1) Eachcurrentdirector,non-directorNEOandcurrentexecutiveofficerhassolevotingandinvestmentpowerwithrespecttotheirrespectivesharesandno shareshavebeenpledgedassecuritybyanysuchperson.IncludesthefollowingsharesheldinouremployeesavingsplanasofFebruary24,2025:Butier –4,222,Lovins–2,196,Yost–3,andallcurrentdirectorsandexecutiveofficersasagroup–8,885.Thebusinessaddressforalltheseindividualsis8080 NortonParkway,Mentor,Ohio44060.

(2) NumbersreportedinthiscolumnarenotentitledtovoteduringtheAnnualMeeting.Includes23,319and1,841DSUsdeferredthroughtheDDECPby Messrs.AlfordandLopez,respectively,asofFebruary24,2025,astowhichtheyhavenovotingorinvestmentpower:DSUsareincludedasbeneficially ownedbecause,ifeitherofthemweretoleaveourBoard,hisDDECPaccountwouldbevaluedasofthedateofseparationandtheequivalentnumberof sharesofourcommonstock,lessfractionalshares,wouldbeissuedtotheseparatingdirector.ForMessrs.ButierandStander,allnon-directorNEOs and otherexecutiveofficers,includesPUsandMSUsvestingwithin60daysofFebruary24,2025.ForMr.Butier,alsoincludesRSUsvestingbysuchdate.

(3) Percentofclassbasedon78,965,996sharesofourcommonstockoutstandingasofFebruary24,2025.Individualsandgroupswithan(*)beneficially ownlessthan1%ofouroutstandingcommonstock.

(4) NumberofsharesbeneficiallyownedbasedoninformationasofDecember29,2023containedinAmendmentNo.1toSchedule13GfiledwiththeSEC onFebruary13,2024.TheVanguardGrouphassolevotingpowerwithrespecttonoshares;sharedvotingpowerwithrespectto102,691shares;sole dispositivepowerwithrespectto9,281,495shares;andshareddispositivepowerwithrespectto342,116shares.TheVanguardGroupisaninvestment adviser,inaccordancewithRule13d-1(b)(1)(ii)(E)oftheExchangeAct,withabusinessaddressof100VanguardBoulevard,Malvern,Pennsylvania 19355.

(5) NumberofsharesbeneficiallyownedbasedoninformationasofDecember31,2023containedinAmendmentNo.15toSchedule13GfiledwiththeSEC onJanuary24,2024.BlackRock,Inc.hassolevotingpowerwithrespectto6,640,110shares;sharedvotingpowerwithrespecttonoshares;sole dispositivepowerwithrespecttoall7,381,914shares;andshareddispositivepowerwithrespecttonoshares.BlackRock,Inc.isaparentholding companyorcontrolperson,inaccordancewithRule13d-1(b)(1)(ii)(G)oftheExchangeAct,withabusinessaddressof50HudsonYards,NewYork,New York10001.

(6) NumberofsharesbeneficiallyownedbasedoninformationasofSeptember30,2024containedinAmendmentNo.1toSchedule13GfiledwiththeSEC onNovember14,2024.T.RowePriceInvestmentManagement,Inc.hassolevotingpowerwithrespectto4,065,200shares;sharedvotingpowerwith respecttonoshares;soledispositivepowerwithrespecttoall4,074,737shares;andshareddispositivepowerwithrespecttonoshares.T.RowePrice InvestmentManagement,Inc.isaninvestmentadviserregisteredunderSection203oftheInvestmentAdvisersActof1940,withabusinessaddressof 101E.PrattStreet,Baltimore,Maryland21201.

RELATEDPERSONTRANSACTIONS

UnderourGovernanceGuidelines,BoardmembersareexpectedtocomplywithourCodeofConductandavoidany action,positionorinterestthatconflictsormayappeartoconflictwiththoseofourcompany.TheGovernanceCommittee overseesourconflictofinterestpolicy,whichprohibitsourofficers(includingallexecutiveofficers)andemployees–or anyoftheirimmediatefamilymembers–fromdirectlyorindirectlydoingbusiness,seekingtodobusinessorowningan interestinanentitythatdoesbusinessorseekstodobusinesswithourcompanywithoutpriorwrittenapproval.Any officeroremployeewhohasaquestionastotheinterpretationofthepolicyoritsapplicationtoaspecificactivity, transactionorsituationmaysubmitthequestioninwritingtoourlawdepartmentforanyfurtherreviewnecessarybythe GovernanceCommittee.

Allemployeesatthelevelofmanagerandaboveandallnon-supervisoryprofessionalsareregularlyrequiredto completeacompliancecertificationinwhichtheymust(i)disclose,amongotherthings,whethertheyoranyoftheir immediatefamilymembershaveajob,contractorotherpositionwithanentitythathascommercialdealingswithour companyand(ii)certifythattheyhavecompliedwithourCodeofConductandkeycompanypolicies.Disclosuresare reviewedbyourcomplianceandlawdepartmentsinconsultationwithseniormanagementtodeterminewhetherthe activityhasthepotentialtosignificantlyinfluenceourbusiness.Intheeventthatanunresolveddisclosurepotentially givesrisetoasignificantconflictofinterest,thecommitteewoulddeterminewhetheraconflictofinterestexistsor whetherthereisreasonablelikelihoodthattheactivity,transactionorsituationwouldinfluencetheindividual’sjudgment oractionsinperforminghisorherduties.TheGovernanceCommitteereceivedareportfromourChiefComplianceOfficer onthe2024compliancecertificationinFebruary2025.

Inaddition,eachofourdirectorsandexecutiveofficersannuallycompletesaquestionnairedesignedtosolicit informationaboutanypotentialrelatedpersontransactions.Transactionsinvolvingdirectorsarereviewedwiththe GovernanceCommitteeinconnectionwithitsannualassessmentofdirectorindependencebyourCorporateSecretary. ResponsesfromexecutiveofficersarereviewedbyourCorporateSecretarywithoversightbytheGovernanceCommittee intheeventanysuchtransactionsareidentified.

Wereviewinternalfinancialrecordstoidentifytransactionswithsecurityholdersknownbyusfrominformation containedinSchedules13Dor13GfiledwiththeSECtobebeneficialownersofmorethan5%ofourcommonstockto determinewhetherwehaveanyrelationshipswiththesecurityholdersthatmightconstituterelatedpersontransactions underItem404(a)ofRegulationS-K.OurCorporateSecretarydiscussesanysuchrelationshipsconstitutingrelated persontransactionswiththeGovernanceCommittee.

Duringfiscalyear2024,therewerenorelatedpersontransactionsrequiringdisclosureunderSECrulesand regulationsandallrelatedpersontransactionswerereviewedinaccordancewiththepoliciesandprocedures describedabove.

VOTINGANDMEETINGQ&A

ANNUALREPORTANDPROXYMATERIALS

HOWDOIACCESSTHE2024ANNUALREPORTAND2025PROXYMATERIALS?

Wehaveelectedtoprovideaccesstoourproxymaterialsontheinternet.Accordingly,wearesendingtheNoticeof InternetAvailabilityofProxyMaterials(the“Notice”)toourstockholdersofrecord.Brokers,banksandothernominees (collectively,“nominees”)whoholdsharesonbehalfofbeneficialowners(alsocalled“streetname”holders)willsenda similarnotice.YoucanaccessourproxymaterialsonthewebsitereferredtointheNotice.Instructionsonhowtorequest printedproxymaterialsbymail,includinganoptiontoreceivepapercopiesinthefuture,maybefoundintheNoticeand onthewebsitereferredtointheNotice.

OnoraboutMarch7,2025,wewillmakeour2024AnnualReportandthisproxystatementavailableonlineand beginmailingtheNoticetoallstockholdersentitledtovote. Onoraboutthesamedate,wewillbeginmailingour2024 IntegratedReport,whichincludesour2024AnnualReportand2025noticeandproxystatement,togetherwithaproxy card,tostockholdersentitledtovotewhohavepreviouslyrequestedpapercopies.Inaddition,ifyourequestpapercopies ofthesematerialsforthefirsttime,theywillbemailedwithinthreebusinessdays.Ifyouholdyoursharesinstreetname, youmayrequestpapercopiesoftheproxystatementandproxycardfromyournomineebyfollowingtheinstructionson thenoticeyournomineeprovidestoyou.

StockholdersofrecordmayobtainacopyofthisproxystatementwithoutchargebywritingtoourCorporate Secretaryat8080NortonParkway,Mentor,Ohio44060.

WHATISHOUSEHOLDING?

Wewillsendonlyone2024IntegratedReporttoanyaddressunlesswehavereceivedinstructionstothecontrary fromanystockholderatthataddress.Householdingallowsusreduceourprintingandpostagecostsandprevents multipleproxymaterialsfrombeingreceivedatyourhousehold.Ifyouwantanadditionalcopyofour2024Integrated Report,youmaymakeyourrequestbywritingtoourCorporateSecretaryat8080NortonParkway,Mentor,Ohio44060.

Ifyoureceivemultiplecopiesandwanttoreceiveasinglecopyinthefuture,orifyouwanttorevokeyourconsentto householdingandreceiveseparatecopiesofourproxystatementandannualreportinfutureyears,youmaycall BroadridgeInvestorCommunicationsServicestoll-freeat866.540.7095intheU.S.andCanadaorwritethemc/o HouseholdingDepartment,51MercedesWay,Edgewood,NewYork11717.

HOWCANIACCESSTHEANNUALREPORTANDPROXYMATERIALSELECTRONICALLY?

Insteadofreceivingpapercopiesofannualreportsandproxymaterialsbymailinthefuture,youcanelecttoreceive anemailwithalinktothesedocumentsontheinternet,whichallowsyoutoaccessthemmorequickly,saveusthecost ofprintingandmailingthemtoyou,reducetheamountofmailyoureceivefromusandhelpuspreserveenvironmental resources.

YoumayenrolltoaccessproxymaterialsandannualreportselectronicallyforfutureAnnualMeetingsbyregistering onlineatthefollowingwebsite:https://enroll.icsdelivery.com/avy.Ifyouarevotingonline,youcanfollowthelinksonthe votingwebsitetoreachtheelectronicenrollmentwebsite.

VOTING

WHOISSOLICITINGMYVOTE?

OurBoardissolicitingyourvoteinconnectionwiththeAnnualMeeting.

WHOISENTITLEDTOVOTE?

StockholdersofrecordasofthecloseofbusinessonFebruary24,2025areentitledtonoticeof,andtovotein connectionwith,theAnnualMeeting.Ourcommonstockistheonlyclassofsharesoutstandingandtherewere 78,965,996sharesofcommonstockoutstandingonFebruary24,2025. Thelistofstockholdersentitledtovotewillbe availableforinspectionduringtheAnnualMeeting,aswellasstarting10daysbeforetheAnnualMeetingduringregular businesshoursatourcompanyheadquarterslocatedat8080NortonParkway,Mentor,Ohio44060.Youareentitledto onevoteforeachshareofcommonstockyouheldontherecorddate.

AveryDennisonCorporation | 2025ProxyStatement 103

HOWDOIVOTE?

YoumayvotebysubmittingaproxyorvotingduringtheAnnualMeetingatwww.virtualshareholdermeeting.com/ AVY2025.Ifyouareabeneficialholder,youmayonlyvoteduringthemeetingifyouproperlyrequestandreceivealegal proxyinyournamefromthenomineethatholdsyourshares.

Themethodofvotingbyproxydiffersdependingonwhetheryouareviewingthisproxystatementonlineor reviewingapapercopy.

•Ifyouareviewingthisproxystatementonline,youmayvoteyoursharesby(i)submittingaproxybytelephone oronlineusingtheinstructionsonthewebsiteor(ii)requestingapapercopyoftheproxymaterialsandfollowing oneofthemethodsdescribedbelow.

•Ifyouarereviewingapapercopyofthisproxystatement,youmayvoteyoursharesby(i)submittingaproxyby telephoneoronlineusingtheinstructionsontheproxycardor(ii)completing,datingandsigningtheproxycard includedwiththeproxystatementandreturningitinthepreaddressed,postage-paidenvelopeprovided.

WhetherornotyouplantoattendtheAnnualMeeting,weurgeyoutovotepromptly.Weencourageyoutovoteby telephoneoronlinesincethesemethodsimmediatelyrecordyourvoteandallowyoutoconfirmthatyourvoteshave beenproperlyrecorded.Telephoneandonlinevotesmustbereceivedby11:59p.m.EasternTimeonApril23,2025.

WHATIFMYSHARESWEREACQUIREDTHROUGHTHEDIRECTSHAREPURCHASEANDSALEPROGRAM?

SharesacquiredthroughourDirectSharePurchaseandSaleProgrammaybevotedbyfollowingtheprocedures describedabove.

WHATIFMYSHARESAREHELDINTHEEMPLOYEESAVINGSPLAN?

IfyouholdsharesasaparticipantinourEmployeeSavings(401(k))Plan,yourvoteservesasavotinginstructionto FidelityManagementTrustCompany,thetrusteeoftheplan,onhowtovoteyourshares.Yourvotinginstructionmustbe receivedbythetrusteeby11:59p.m.EasternTimeonApril21,2025.

Ifthetrusteedoesnotreceiveyourinstructioninatimelymanner,yourshareswillbevotedinthesameproportionas thesharesvotedbyplanparticipantswhotimelyfurnishinstructions.Sharesofourcommonstockthathavenotbeen allocatedtoparticipantaccountswillalsobevotedbythetrusteeinthesameproportionasthesharesvotedbyplan participantswhotimelyfurnishinstructions.

HOWDOIREVOKEMYPROXYORCHANGEMYVOTEAFTERIHAVEVOTED?

Ifyougiveaproxypursuanttothissolicitation,youmayrevokeitbeforeitisacteduponduringtheAnnualMeeting by(i)submittinganotherproxybytelephoneoronlinebythedeadlineindicatedabove(onlyyourlastinstructionswillbe counted);(ii)sendingalaterdatedpaperproxy;or(iii)ifyouareentitledtodoso,votingduringtheAnnualMeeting. SimplyattendingtheAnnualMeetingwillnotrevokeyourproxy.

Ifyoursharesareheldinstreetname,youmayonlychangeyourvotebysubmittingnewvotinginstructionstoyour nominee.Youmustcontactyournomineetofindouthowtochangeyourvote.SharesheldinourEmployeeSavingsPlan cannotbechangedorrevokedafter11:59p.m.EasternTimeonApril21,2025,norcantheybevotedduringtheAnnual Meeting.

ISMYVOTECONFIDENTIAL?

Exceptincontestedproxysolicitations,whenrequiredbylaworasauthorizedbyyou(suchasbymakingawritten commentonyourproxycard,inwhichcasethecomment,butnotyourvote,maybesharedwithourcompany),yourvote orvotinginstructionisconfidentialandwillnotbedisclosedotherthantothebroker,trustee,agentorinspectorof electiontabulatingyourvote.

HOWWILLVOTESBECOUNTED?

VotesfortheAnnualMeetingwillbetabulatedbyarepresentativefromBroadridgeFinancialSolutions,Inc.,the independentinspectorofelectionappointedbyourBoard.Theinspectorofelectionwillalsodeterminewhethera quorumispresent;sharesrepresentedbyproxiesthatreflectabstentionsorbrokernon-votes(whicharesharesheldbya nomineethatarerepresented,butwithrespecttowhichthenomineeneitherhasdiscretionaryauthoritytovotenorhas 104 2025ProxyStatement | AveryDennisonCorporation

beengivenactualauthoritytovoteonaparticularproposal)willbecountedassharesthatarepresentandentitledto voteforpurposesofdeterminingthepresenceofaquorum.Proposals1,2and4arenon-routineundertherulesofthe NYSEandProposal3isroutine.Nomineesareprohibitedfromvotingonnon-routineproposalsintheabsenceof instructionsfromthebeneficialownersoftheshares;asaresult, ifyouholdyoursharesinstreetnameanddonot timelysubmitvotinginstructionstoyournominee,yourshareswillnotbevotedonProposal1,electionofdirectors; Proposal2,approval,onanadvisorybasis,ofexecutivecompensation;orProposal4,voteonstockholderproposal forastockholderapprovalrequirementforexcessivegoldenparachutes. Weurgeyoutopromptlyprovidevoting instructionstoyournomineesothatyourvoteiscounted.

ThevoterequiredtoapproveeachoftheAnnualMeetingproposals,aswellastheimpactofabstentionsandbroker non-votes,isshowninthechartbelow.

PROPOSALVOTEREQUIREDIMPACTOFABSENTIONS

1 Electionofdirectors

2 Advisoryvotetoapproveexecutive compensation

3 RatificationofappointmentofPwCas independentregisteredpublicaccounting firmforFY2025

4 Voteonstockholderproposalfor stockholderapprovalrequirementfor excessivegoldenparachutes,ifproperly presentedduringthemeeting

Majorityofvotescast

Notcountedasvotescast; noimpactonoutcome

Notcountedasvotescast; noimpactonoutcome

Majorityofshares representedandentitled tovote Negativeimpactonoutcome Notcountedasrepresentedand entitledtovote; noimpactonoutcome

Majorityofshares representedandentitled tovote NegativeimpactonoutcomeNotapplicable

Majorityofshares representedandentitled tovote Negativeimpactonoutcome Notcountedasrepresentedand entitledtovote; noimpactonoutcome

WHATIFTHEREISADDITIONALBUSINESSTOBEVOTEDON?

Asofthedateofthisproxystatement,weknowofnootherbusinesstobepresentedforconsiderationduringthe meeting.Ifanyotherbusinessproperlycomesbeforethemeeting,yourvotewillbecastonanysuchotherbusinessby theindividualsactingpursuanttoyourproxyintheirbestjudgment.

HOWDOIFINDVOTERESULTS?

WeexpecttoannouncepreliminaryvotingresultsduringtheAnnualMeetingandreportfinalvotingresultsina CurrentReportonForm8-KfiledwiththeSEConorbeforeApril30,2025.

ANNUALMEETINGINFORMATION

WHATISTHETIME,DATEANDFORMATOFTHEANNUALMEETING?

TheAnnualMeetingwilltakeplaceat2:30p.m.EasternTimeonApril24,2025.Toallowstockholderstoattend withoutthetimeandexpenseofdoingsoinperson,themeetingwillbeheldvirtually,withattendanceviatheinternet.

HOWCANIATTENDTHEVIRTUALMEETING?

ToattendthevirtualAnnualMeeting,youwillneedtologintothevirtualmeetingwebsiteat www.virtualshareholdermeeting.com/AVY2025usingthe16-digitcontrolnumberonyourNotice,proxycardorvoting instructionform.OnlineaccesstotheliveaudiowebcastoftheAnnualMeetingwillopenat2:15p.m.EasternTimeto allowtimeforyoutologinandtestyourdevice’saudiosystem.Weencourageyoutoaccessthemeetinginadvanceof itsstarttimeaswewillbeginpromptly.

HOWDOIASKQUESTIONSDURINGTHEMEETING?

WehavedesignedthevirtualAnnualMeetingtoensurethatyouhavethesamerightsandopportunitiesto participateasyouwouldatanin-personmeeting,usinganonlineplatformthatallowsyoutoattend,voteandask questions. Onlystockholdersasoftherecorddateortheirproperlyappointedproxiesmayaskquestionsduringthe meeting,andourChairmanmaylimitthelengthofdiscussiononanyparticularmatter.DuringtheAnnualMeeting,you canviewourGroundRulesforConductofMeetingandsubmitquestionsonthemeetingwebsite.

AfterthebusinessportionoftheAnnualMeetingconcludesandthemeetingisadjourned, wewillholdaQ&A sessionduringwhichweintendtoanswerallquestions submittedtimelythatarepertinenttoourcompanyandthe proposalsbeingbroughtbeforestockholdervote,astimepermitsandinaccordancewithourGroundRulesforConduct ofMeeting.Questionsandanswerswillbegroupedbytopicandsubstantiallysimilarquestionswillbeansweredonly once.Toensureallquestionsareabletobeaddressed,wewillrespondtonomorethanthreequestionsfromanysingle stockholder. Answerstoquestionsnotabletobeaddressed,ifany,willbepostedpromptlyafterthemeetingonthe investorssectionofourwebsite.

Asaresultoftimeconstraintsandotherconsiderations,wecannotassureyouthateverystockholderwishingto addressthemeetingwillhavetheopportunitytodoso.However,stockholdersareinvitedtodirectinquiriesorcomments regardingbusinessmatterstoourInvestorRelationsdepartmentbyemailtoinvestorcom@averydennison.comorbymail to8080NortonParkway,Mentor,Ohio44060.Inaddition,stockholderswishingtoaddressmatterstoourBoardorany ofitsmembersmaydosoasdescribedunderContactingOurBoardinthe OurBoardofDirectors sectionofthisproxy statement.

WHATDOIDOIFIAMHAVINGTECHNICALISSUESACCESSINGORPARTICIPATINGINTHEMEETING?

Beginning15minutespriorto,andduring,theAnnualMeeting,wewillhavesupportavailabletoassiststockholders withanytechnicaldifficultiestheymayhaveaccessingorhearingthevirtualmeeting.Ifyouencounteranydifficulty accessing,orduring,thevirtualmeeting,pleasecallthesupportteamat1.844.986.0822(toll-freeintheU.S.and Canada)or+1.303.562.9302(forallotherattendees).

HOWAREPROXIESBEINGSOLICITED?

Wewillpaythecostsrelatedtooursolicitationofproxiesandreimbursebanks,brokersandothercustodians, nomineesandfiduciariesforreasonableout-of-pocketexpensestheyincurinforwardingourproxymaterialstobeneficial stockholders.WehaveretainedSodali&Co.toassistinsolicitingproxiesforafeeof$12,000,plusreimbursementof out-of-pocketexpensesincidenttopreparingandmailingourproxymaterials.Certainofouremployeesthatmaysolicit proxiesbytelephoneoremailwillnotreceiveadditionalcompensationfortheirefforts.Youcanhelpreduceour solicitationcostsbyconsentingtoaccessourproxymaterialselectronicallyandvotingpromptly.

MATTERSRELATEDTO2026ANNUALMEETING

HOWDOISUBMITPROPOSALSFORPOTENTIALCONSIDERATIONATTHE2026ANNUALMEETING?

ToproposebusinesssatisfyingtheeligibilityrequirementsofSECRule14a-8tobeconsideredforinclusioninour proxystatementforthe2026AnnualMeeting,youmustprovidenoticesoitisreceivedatourprincipalexecutiveoffices onorbeforeNovember7,2025.IfyouwishtonominatepersonsforelectiontoourBoardorbringanyotherbusiness beforeanannualmeetingundertheadvancenoticeprovisionsorourBylaws,youmustprovidewrittennoticetoour CorporateSecretaryatourprincipalexecutiveofficesinwriting90to120dayspriortothefirstanniversaryofthe precedingyear’sannualmeeting(withrespecttothe2026AnnualMeeting,noearlierthanDecember25,2025andno laterthanJanuary24,2026)andcomplywiththeotherrequirementssetforthinourBylaws.

Yournoticemustinclude,amongotherthings,theinformationsummarizedbelowanddescribedingreaterdetailin ArticleII,Section14ofourBylaws,whichareavailableunder GovernanceDocuments intheinvestorssectionofour website.

•Astoeachpersonwhoyouproposetonominateforelectionorreelectionasadirector:

•Allinformationrelatingtothepersonthatisrequiredtobedisclosedinsolicitationsofproxiesforelectionof directorsinanelectioncontestorisotherwiserequiredpursuanttoRegulation14undertheExchangeAct

•Theperson’swrittenconsenttobenamedinourproxystatementandaccompanyingproxycardasa nomineeandserveasadirectorifelectedforthefulltermuntilthenextmeetingatwhichsuchnominee wouldfacereelection

•Allinformationwithrespecttosuchpersonthatwouldberequiredtobesetforthinastockholder’snotice pursuanttoourBylawsifsuchpersonwereastockholder

•Adescriptionofalldirectandindirectmaterialinterestinanymaterialcontractoragreementbetweenor amonganystockholder,ontheonehand,andthenominee,nominee’saffiliatesoranyotherparticipantsin thesolicitation,ontheotherhand,asmoreparticularlysetforthinourBylaws

•Astoanyotherproposalyouplantobringbeforethemeeting,abriefdescriptionofthebusiness;thereasonsfor conductingthebusinessduringthemeeting;areasonablydetaileddescriptionofallagreements,arrangements andunderstandingsbetweenoramonganystockholdersandbetweenoramonganystockholderandother personorentityinconnectionwiththeproposalofsuchbusinessbysuchstockholder;andanyotherinformation relatingtosuchproposalthatwouldberequiredtobedisclosedinaproxystatementorotherfilingrequiredto bemadeinconnectionwithsolicitationsofproxiesinsupportofthebusinessproposedtobebroughtbeforethe meetingpursuanttoSection14(a)oftheExchangeAct

•Yourname,address,andtheclassandnumberofsharesyouownbeneficiallyandasofrecord,aswellas informationrelatingtoyoursecurityownershipinourcompany

Stockholderproposalsthatdonotfullycomplywiththeadvancenoticeandotherrequirementscontainedinour Bylawswillnotbepermittedtobebroughtbeforethe2026AnnualMeeting.Inadditiontosatisfyingtherequirements underourBylaws,tocomplywiththeSEC’suniversalproxyrules,stockholderswhointendtosolicitproxiesinsupportof directornomineesotherthanourBoard’snomineesmustprovidewrittennoticetoourCorporateSecretaryatour principalexecutiveofficesthatincludestheinformationrequiredbyRule14a-19undertheExchangeActnolaterthan February23,2026.

WeintendtofileaproxystatementandawhiteproxycardwiththeSECinconnectionwithoursolicitationofproxies forthe2026AnnualMeeting.

HOWDOINOMINATEDIRECTORSFORINCLUSIONINTHE2026PROXYSTATEMENT?

OurBylawspermitastockholder,oragroupofnomorethan20stockholders,owningatleast3%ofourcompany’s outstandingsharesofcommonstockcontinuouslyforatleastthreeyearstonominateandincludeinourannualmeeting proxymaterialsdirectornomineesconstitutinguptothegreateroftwonomineesor20%ofourBoard,subjecttothe requirementscontainedinArticleII,Section17ofourBylaws,whichareavailableunder GovernanceDocuments inthe investorssectionofourwebsite.Writtennoticeofproxyaccessdirectornomineesforthe2026AnnualMeetingmustbe deliveredtoourCorporateSecretaryatourprincipalexecutiveofficesnoearlierthanOctober8,2025andnolaterthan November7,2025andmustcomplywiththeotherrequirementssetforthinourBylaws.

[THISPAGEINTENTIONALLYLEFTBLANK]

APPENDIXA–RECONCILIATIONOFNON-GAAPFINANCIALMEASURES FROMGAAP

WereportourfinancialresultsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesof America,orGAAP,andalsocommunicatewithinvestorsusingcertainnon-GAAPfinancialmeasures.Thesenon-GAAP financialmeasuresarenotinaccordancewith,noraretheyasubstitutefororsuperiorto,thecomparableGAAPfinancial measures.Thesenon-GAAPfinancialmeasuresareintendedtosupplementthepresentationofourfinancialresults preparedinaccordancewithGAAP.Weusethesenon-GAAPfinancialmeasuresinternallytoevaluatetrendsinour underlyingperformance,aswellastofacilitatecomparisonswiththeresultsofcompetitorsforquartersandyear-to-date periods,asapplicable.Basedonfeedbackfrominvestorsandfinancialanalysts,webelievethatthesupplemental non-GAAPfinancialmeasuresweprovidearealsousefultotheirassessmentsofourperformanceandoperatingtrends, aswellasliquidity.

Ournon-GAAPfinancialmeasuresexcludetheimpactofcertainevents,activitiesorstrategicdecisions.Theaccounting effectsoftheseevents,activitiesordecisions,whichareincludedintheGAAPfinancialmeasures,maymakeitmoredifficult toassessourunderlyingperformanceinasingleperiod.Byexcludingtheaccountingeffects,positiveornegative,ofcertain items(e.g.,restructuringcharges,outcomesofcertainlegalmattersandsettlements,certaineffectsofstrategictransactions andrelatedcosts,lossesfromdebtextinguishments,gainsorlossesfromcurtailmentorsettlementofpensionobligations, gainsorlossesonsalesofcertainassets,gainsorlossesonventureinvestments,currencyadjustmentsduetohighly inflationaryeconomies,andotheritems),webelievethatweareprovidingmeaningfulsupplementalinformationthat facilitatesanunderstandingofourcoreoperatingresultsandliquiditymeasures.Whilesomeoftheitemsweexcludefrom GAAPfinancialmeasuresrecur,theytendtobedisparateinamount,frequencyortiming.

Weusethenon-GAAPfinancialmeasuresdefinedbelowinthisproxystatement,whicharereconciledfromGAAP onthefollowingpages.

• Saleschangeex.currency referstotheincreaseordecreaseinnetsales,excludingtheestimatedimpactof foreigncurrencytranslation,and,whereapplicable,thecurrencyadjustmentsfortransitionalreportingofhighly inflationaryeconomies,andthereclassificationofsalesbetweensegments.Additionally,whereapplicable,sales changeex.currencyisalsoadjustedforanextraweekinourfiscalyearandthecalendarshiftresultingfroman extraweekinthepriorfiscalyear.Theestimatedimpactofforeigncurrencytranslationiscalculatedona constantcurrencybasis,withprior-periodresultstranslatedatcurrentperiodaverageexchangeratestoexclude theeffectofforeigncurrencyfluctuations.

Our2025fiscalyearthatbeganonDecember29,2024willendonDecember31,2025;fiscalyears2026and beyondwillbecoincidentwiththecalendaryearbeginningonJanuary1andendingonDecember31.

• Organicsaleschange referstosaleschangeex.currency,excludingtheestimatedimpactofacquisitionsand productlinedivestitures.

Webelievethatsaleschangeex.currencyandorganicsaleschangeassistinvestorsinevaluatingthesales changefromtheongoingactivitiesofourbusinessesandenhancetheirabilitytoevaluateourresultsfromperiod toperiod.

• AdjustedEBITDA referstoadjustedoperatingincomebeforedepreciationandamortization.Adjustedoperating incomeisnetincomeadjustedfortaxes;otherexpense(income),net;interestexpense;othernon-operating expense(income),net;andotheritems.

• AdjustedEBITDAmargin referstoadjustedEBITDAasapercentageofnetsales.

• Adjustednetincomepercommonshare,assumingdilution(adjustedEPS),referstoadjustednetincomedivided bytheweightedaveragenumberofcommonsharesoutstanding,assumingdilution.Adjustednetincomeis incomebeforetaxes,tax-effectedattheadjustedtaxrate,andadjustedfortax-effectedrestructuringcharges andotheritems.Adjustedtaxrateisthefull-yearGAAPtaxrate,adjustedtoexcludecertainunusualor infrequenteventsthatsignificantlyimpactthatrate,suchaseffectsofcertaindiscretetaxplanningactions, impactsrelatedtoenactmentsofcomprehensivetaxlawchanges,andotheritems.

WebelievethatadjustedEBITDA,adjustedEBITDAmarginandadjustedEPSassistinvestorsinunderstanding ourcoreoperatingtrendsandcomparingourresultswiththoseofourcompetitors.

• Adjustedfreecashflow referstocashflowprovidedbyoperatingactivities,lesspaymentsforproperty,plant andequipment,lesspaymentsforsoftwareandotherdeferredcharges,plusproceedsfromcompany-ownedlife insurancepolicies,plusproceedsfromsalesofproperty,plantandequipment,plus(minus)netproceedsfrom insuranceandsales(purchases)ofinvestments,lessnetcashusedforArgentineBlueChipSwapsecurities.

Whereapplicable,adjustedfreecashflowisalsoadjustedforcertainacquisition-relatedtransactioncosts.We believethatadjustedfreecashflowassistsinvestorsbyshowingtheamountofcashwehaveavailablefordebt reductions,dividends,sharerepurchases,andacquisitions.

• Adjustedfreecashflowconversion referstoadjustedfreecashflowdividedbynetincome.

• Returnontotalcapital (ROTC)referstonetincomeexcludinginterestexpenseandamortizationofintangible assetsfromacquisitions,netoftaxbenefit,dividedbytheaverageofbeginningandendinginvestedcapital.We believethatROTCassistsinvestorsinunderstandingourabilitytogeneratereturnsfromourcapital.

• Adjustedearningsbeforeinterestandtaxes (EBIT)referstoearningsbeforeinterestexpense,othernon-operating expense(income),taxes,excludingnon-cashrestructuringcosts,andotheritems.WeuseadjustedEBITto calculateeconomicvalueadded(EVA),oneoftheperformanceobjectivesusedinourlong-termincentive compensationprogram.WebelievethatadjustedEBITassistsinvestorsinunderstandingourcoreoperating trendsandcomparingourresultswiththoseofourcompetitors.

SALESCHANGEEX.CURRENCYANDORGANICSALESCHANGE

($inmillions)

2021202220232024

Netsales$8,408.3$9,039.3$8,364.3$8,755.75.9%

Reportednetsaleschange20.6%7.5%(7.5)%4.7%

Foreigncurrencytranslation(3.4)%5.6%0.6%0.4%

Extraweekimpact1.4%–––

Saleschangeex.currency(non-GAAP)(2)

Acquisitionsandproductlinedivestiture(3.1)%(3.6)%(0.8)%(0.6)%

Organicsaleschange(non-GAAP)(2)

(1) Reflectsfour-yearcompoundannualgrowthrates,with2020asthebaseperiod.

(2) Totalsmaynotsumduetorounding.

ADJUSTEDEBITDAANDADJUSTEDEBITDAMARGINS

($inmillions)

2021202220232024

Netsales$8,408.3$9,039.3$8,364.3$8,755.7

Asreportednetincome$740.1$757.1$503.0$704.9

Adjustments:

Interestexpense70.284.1119.0117.0

Othernon-operatingexpense(income),net(4.1)(9.4)(30.8)(26.7) Provisionforincometaxes248.6242.2191.7248.6

Equitymethodinvestmentlosses3.9–––

2021-2024 4-YRCAGR(1)

Operatingincomebeforeinterestexpense,othernon-operating expense(income),taxes,andequitymethodinvestmentlosses, asreported$1,058.7$1,074.0$782.9$1,043.86.6%

Operatingmargins,asreported12.6%11.9%9.4%11.9%

Non-GAAPadjustments:

Restructuringcharges,netofreversals:

Severanceandrelatedcosts,netofreversals$10.5$7.6$70.8$35.4

Assetimpairmentandleasecancellationcharges3.10.18.66.5

Otheritems(2) (8.0)(8.3)101.536.4

Adjustedoperatingincome(non-GAAP)$1,064.3$1,073.4$963.8$1,122.1

Adjustedoperatingmargins(non-GAAP)12.7%11.9%11.5%12.8% Depreciationandamortization$244.1$290.7$298.4$312.2

AdjustedEBITDA(non-GAAP)$1,308.4$1,364.1$1,262.2$1,434.37.6%

AdjustedEBITDAmargins(non-GAAP)15.6%15.1%15.1%16.4%

(1) Reflectsfour-yearcompoundannualgrowthrates,with2020asthebaseperiod.

(2) Includespre-tax(gain)/lossonventureinvestments,gainonsaleofproductline,(gain)/lossonsalesofassets,outcomesoflegalmattersandsettlements,net, transactionandrelatedcosts,andlossesfromArgentinepesoremeasurementandBlueChipSwaptransactions.

A-2 2025ProxyStatement | AveryDennisonCorporation

ADJUSTEDEPS

($inmillions,exceptpershareamounts)

20202021202220232024 2021-2024 4-YRCAGR(1)

Asreportednetincome$555.9$740.1$757.1$503.0$704.96.1%

Asreportednetincomepercommonshare,assumingdilution$6.61$8.83$9.21$6.20$8.737.2%

Non-GAAPadjustmentspercommonshare,netoftax: Restructuringchargesandotheritems(2)

0.480.05(0.06)1.850.75

Argentineinterestincome–––(0.15)(0.05)

Pensionplansettlementandcurtailmentlosses0.010.03–––

Adjustednetincomepercommonshare,assumingdilution (non-GAAP)$7.10$8.91$9.15$7.90$9.437.4%

Adjustedtaxrateswere24.1%,25%,24.7%,25.8%and25.9%for2020,2021,2022,2023and2024,respectively.

(1) Reflectsfour-yearcompoundannualgrowthrates,with2020asthebaseperiod.

(2) Otheritemsinclude(gain)/lossonventureinvestments,gainonsaleofproductline,(gain)/lossonsalesofassets,outcomesoflegalmattersandsettlements,net, transactionandrelatedcosts,andlossesfromArgentinepesoremeasurementandBlueChipSwaptransactions.

ADJUSTEDFREECASHFLOW

($inmillions)

202220232024

Netcashprovidedbyoperatingactivities$961.0$826.0$938.8 Purchasesofproperty,plantandequipment(278.1)(265.3)(208.8) Purchasesofsoftwareandotherdeferredcharges(20.4)(19.8)(31.0) Proceedsfromcompany-ownedlifeinsurancepolicies–48.1–PurchasesofArgentineBlueChipSwapsecurities––(34.2) ProceedsfromsalesofArgentineBlueChipSwapsecurities––24.0 Proceedsfromsalesofproperty,plantandequipment2.31.00.6 Proceedsfrominsuranceandsales(purchases)ofinvestments,net1.91.910.1 Paymentsforcertainacquisition-relatedtransactioncosts0.6––Adjustedfreecashflow(non-GAAP)$667.3$591.9$699.5

RETURNONTOTALCAPITAL(ROTC)

($inmillions)

202220232024

Asreportednetincome $757.1$503.0$704.9

Interestexpense,netoftaxbenefit 63.786.286.5

Intangibleamortization,netoftaxbenefit62.062.566.1

Effectivetaxrate

Netincome,excludinginterestexpenseandintangibleamortization,netoftaxbenefit$882.8$651.7$857.5

Totaldebt $3,102.1$3,244.3$3,152.2

Shareholders’equity $2,032.2$2,127.9$2,312.3

Totaldebtandshareholders’equity$5,134.3$5,372.2$5,464.5 ROTC(non-GAAP) 17.4%12.4%15.8%

($inmillions) 202220232024

Operatingincomebeforeinterestexpense,othernon-operatingexpense(income),andtaxes$1,074.0$782.9$1,043.8

Reconcilingitems:

Adjustedearningsbeforeinterestexpense,othernon-operatingexpense(income),taxes,non-cash restructuringcosts,andotheritems(non-GAAP)$1,157.5$975.5$1,171.7

(1) Includesimpactofacquisitionscompletedaftertargetswereset,theRussia-Ukrainewar,intangibleamortization,(gain)/lossonventureinvestments,(gain)/losson salesofassets,outcomesoflegalmattersandsettlements,net,transactionandrelatedcosts,andlossesfromArgentinepesoremeasurementandBlueChipSwap transactions.

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