On this page of StockholderLetter.com we present the 3/11/2024 shareholder letter from Avery Dennison Corp — ticker symbol AVY. Reading current and past AVY letters to shareholders can bring important insights into the investment thesis.
2023 Sustainability and Annual Reports 2024 Notice and Proxy Statement

LETTER FROM OUR PRESIDENT & CEO Deon Stander Fellow Stakeholders, Our team at Avery Dennison displayed tremendous agility throughout 2023 amid a dynamic business climate. While market conditions turned out to be very different than we initially anticipated and we did not meet our initial expectations for the full year, I am pleased with how we navigated the challenging environment. Importantly, we made solid progress toward our long-term strategic priorities, expanded our Intelligent Label platform and advanced our sustainability efforts, leveraging our strong materials science foundation and digital identification innovations to deliver for all stakeholders. complex industry challenges, such as labor efficiency and supply chain effectiveness, waste reduction, circularity and transparency, and better connecting brands and consumers. In our ever more connected world, the potential to solve these challenges rests on the ability for physical items to have a digital identity. Avery Dennison is uniquely positioned to connect the physical and digital, leveraging the core capabilities of our Materials and Solutions businesses while further delivering marketdriven innovation, as demonstrated by the power of our Intelligent Labels platform. Building on our business strengths The primary industries we serve experienced significant inventory destocking in 2023. In response to lower volume, we effectively made adjustments, protected margins and carefully managed costs while deepening our insights on the drivers of demand and inventory throughout our value chain. Our Materials Group delivered strong margins, with volume improving sequentially each quarter, and our Solutions Group sales increase reflected strong growth in high-value categories, particularly Intelligent Labels, as well as the impact of acquisitions. We are well positioned to deliver strong earnings growth in 2024 while making significant progress toward delivering our long-term sustainability and financial targets. As industry leaders in our primary businesses with competitive advantages in scale and innovation, we continue to provide service excellence and create value for our customers across the globe. Accelerating growth in high-value categories Our Intelligent Labels platform is now a roughly $850 million business that has averaged nearly 20% growth on an organic basis for many years. In 2023, we increased our potential in this space as programs ramped up and adoption in new categories, like logistics and food, accelerated. In 2023, our teams successfully executed the largest single wave program in RFID history in support of a global logistics service provider. Our customers continue to recognize the significant benefits of our Intelligent Labels technologies and solutions, from increasing supply chain and inventory visibility to enhancing the experience of their end consumers. Another one of our high-value categories, external embellishments, was bolstered by multiple strategic acquisitions in 2023 that added complementary capabilities to our Embelex portfolio and provided greater market access. With the vast opportunity available in high-value categories, we continue to invest and increase our capacity to grow in this area. Evolving our strategies As our business continued to evolve, we refined our strategies to further concentrate on the key areas that will enable our success over the long term. Our core set of strategies now includes leading at the intersection of the physical and digital an important differentiator as our customers increasingly look for help in solving Advancing sustainability for our people and planet Working toward a fully sustainable future while supporting the communities in which we operate is critical to the long-term health of our business strategy and culture. We use our resources, operational experience and creativity to drive better outcomes for our industries, Avery Dennison Corporation | 2023 Integrated Report i
customers, team and world. Last year, we made further progress reducing our environmental footprint, expanding our portfolio of sustainability-oriented products, and advancing our diversity, equity and inclusion efforts. I am proud to say we are on track to achieving our 2025 sustainability goals and have accelerated our plans to deliver our 2030 goals. In the area of corporate social responsibility, the Avery Dennison Foundation through its grantmaking and relief efforts supported critical community needs worldwide, including increasing education access, advancing environmental sustainability and supporting secure livelihoods. Given the diversity of our end markets, as well as the clear competitive advantages in both of our businesses and our talented and resilient team, we are in a strong position to expand our potential and continue unlocking significant growth opportunities. Most promising, the important role we play in addressing our industries and customers most pressing problems enables us to create even greater value for our stakeholders, making a brighter, more connected future possible. Thank you to our entire Avery Dennison team for their passion and commitment and to you for your interest in Avery Dennison. Creating value and expanding our potential Entering 2024, we are confident in our ability to execute our core business strategies, deliver significant earnings growth, and make substantial progress toward our long-term goals. ABOUT THIS REPORT ii This integrated report summarizes how we performed strategically and financially for the fiscal year ending December 30, 2023. It includes our 2023 annual report and our 2024 notice and proxy statement and highlights our progress toward the 2025 sustainability goals we established in 2015 and the 2030 goals and targets we established in 2020 and announced in 2021. Sustainability data have not been audited. Our policies on climate, human rights and water are publicly available on our website at esg.averydennison.com. 2023 Integrated Report | Avery Dennison Corporation
Contents SECTION I i Letter from our President & CEO ii .About this Report 2 Our Company 3 Our Stakeholders 3 Our Values 4 Our Business Strategies 5 Financial Highlights 6 Sustainability Highlights Our Strategies in Action 8 Drive outsized growth in high-value categories through market-driven innovation 10 Grow profitably in our base business 12 Lead at the intersection of the physical and digital 14 Effectively allocate capital and relentlessly focus on productivity 15 Lead in an environmentally and socially responsible manner SECTION II 2023 Annual Report SECTION III 2024 Notice and Proxy Statement Avery Dennison Corporation | 2023 Integrated Report 1
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AVY 3/11/2024 Shareholder/Stockholder Letter Transcript:

2023
Sustainability and
Annual Reports
2024
Notice and
Proxy Statement


LETTER FROM OUR PRESIDENT & CEO
Deon Stander
Fellow Stakeholders,
Our team at Avery Dennison displayed tremendous agility
throughout 2023 amid a dynamic business climate. While
market conditions turned out to be very different than
we initially anticipated and we did not meet our initial
expectations for the full year, I am pleased with how we
navigated the challenging environment. Importantly,
we made solid progress toward our long-term strategic
priorities, expanded our Intelligent Label platform and
advanced our sustainability efforts, leveraging our strong
materials science foundation and digital identification
innovations to deliver for all stakeholders.
complex industry challenges, such as labor efficiency and
supply chain effectiveness, waste reduction, circularity
and transparency, and better connecting brands and
consumers. In our ever more connected world, the
potential to solve these challenges rests on the ability for
physical items to have a digital identity. Avery Dennison
is uniquely positioned to connect the physical and digital,
leveraging the core capabilities of our Materials and
Solutions businesses while further delivering marketdriven innovation, as demonstrated by the power of our
Intelligent Labels platform.
Building on our business strengths
The primary industries we serve experienced significant
inventory destocking in 2023. In response to lower
volume, we effectively made adjustments, protected
margins and carefully managed costs while deepening
our insights on the drivers of demand and inventory
throughout our value chain. Our Materials Group delivered
strong margins, with volume improving sequentially each
quarter, and our Solutions Group sales increase reflected
strong growth in high-value categories, particularly
Intelligent Labels, as well as the impact of acquisitions.
We are well positioned to deliver strong earnings growth
in 2024 while making significant progress toward
delivering our long-term sustainability and financial
targets. As industry leaders in our primary businesses
with competitive advantages in scale and innovation, we
continue to provide service excellence and create value for
our customers across the globe.
Accelerating growth in high-value categories
Our Intelligent Labels platform is now a roughly $850
million business that has averaged nearly 20% growth on
an organic basis for many years. In 2023, we increased
our potential in this space as programs ramped up and
adoption in new categories, like logistics and food,
accelerated. In 2023, our teams successfully executed the
largest single wave program in RFID history in support of
a global logistics service provider. Our customers continue
to recognize the significant benefits of our Intelligent
Labels technologies and solutions, from increasing supply
chain and inventory visibility to enhancing the experience
of their end consumers. Another one of our high-value
categories, external embellishments, was bolstered
by multiple strategic acquisitions in 2023 that added
complementary capabilities to our Embelex portfolio and
provided greater market access. With the vast opportunity
available in high-value categories, we continue to invest
and increase our capacity to grow in this area.
Evolving our strategies
As our business continued to evolve, we refined our
strategies to further concentrate on the key areas that
will enable our success over the long term. Our core set
of strategies now includes leading at the intersection of
the physical and digital     an important differentiator
as our customers increasingly look for help in solving
Advancing sustainability for our people and planet
Working toward a fully sustainable future while
supporting the communities in which we operate is critical
to the long-term health of our business strategy and
culture. We use our resources, operational experience
and creativity to drive better outcomes for our industries,
Avery Dennison Corporation | 2023 Integrated Report i

customers, team and world. Last year, we made further
progress reducing our environmental footprint, expanding
our portfolio of sustainability-oriented products, and
advancing our diversity, equity and inclusion efforts. I
am proud to say we are on track to achieving our 2025
sustainability goals and have accelerated our plans to
deliver our 2030 goals.
In the area of corporate social responsibility, the Avery
Dennison Foundation through its grantmaking and relief efforts
supported critical community needs worldwide, including
increasing education access, advancing environmental
sustainability and supporting secure livelihoods.
Given the diversity of our end markets, as well as the
clear competitive advantages in both of our businesses
and our talented and resilient team, we are in a strong
position to expand our potential and continue unlocking
significant growth opportunities. Most promising, the
important role we play in addressing our industries   
and customers    most pressing problems enables us to
create even greater value for our stakeholders, making a
brighter, more connected future possible.
Thank you to our entire Avery Dennison team for their
passion and commitment and to you for your interest
in Avery Dennison.
Creating value and expanding our potential
Entering 2024, we are confident in our ability to execute our
core business strategies, deliver significant earnings growth,
and make substantial progress toward our long-term goals.
ABOUT
THIS
REPORT
ii
This integrated report summarizes how we performed
strategically and financially for the fiscal year ending
December 30, 2023. It includes our 2023 annual
report and our 2024 notice and proxy statement and
highlights our progress toward the 2025 sustainability
goals we established in 2015 and the 2030 goals and
targets we established in 2020 and announced in
2021. Sustainability data have not been audited. Our
policies on climate, human rights and water are publicly
available on our website at esg.averydennison.com.
2023 Integrated Report | Avery Dennison Corporation

Contents
SECTION I
i
Letter from our President & CEO
ii
.About this Report
2
Our Company
3
Our Stakeholders
3
Our Values
4
Our Business Strategies
5
Financial Highlights
6
Sustainability Highlights
Our Strategies in Action
8
Drive outsized growth in high-value categories
through market-driven innovation
10
Grow profitably in our base business
12
Lead at the intersection of the physical and digital
14
Effectively allocate capital and relentlessly
focus on productivity
15
Lead in an environmentally and
socially responsible manner
SECTION II
2023 Annual Report
SECTION III
2024 Notice and Proxy Statement
Avery Dennison Corporation | 2023 Integrated Report 1



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