H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q2 2021 Earnings Presentation
23 slides from H. B. Fuller's earnings presentation, Jun 24, 2021
Slide 1: Second Quarter 2021 Conference Call
Second Quarter 2021 Conference Call Investor Presentation St. Paul, MN June 24, 2021
Slide 2: Safe Harbor & Regulation G
2 Safe Harbor & Regulation G Safe Harbor Statement Certain matters discussed today may be considered forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
Slide 3: Q2 2021 Quarterly Results Highlights
3 Q2 2021 Quarterly Results Highlights • Significant year-over-year sales and earnings growth ‒ Organic revenues up 19% ‒ Adjusted EBITDA up 21% ‒ Adjusted EPS up 38% • Record quarter in revenues ‒ Strong YoY growth versus Q2’20 and pre-COVID results in Q2’19 ‒ HBF global sourcing expertise, chemist
Slide 4: Q2 2021 Global Segment Summary
4 Q2Better 2021 Global Segment accountability Summary Global vision Stronger teamwork Hygiene, Health and Consumables Adhesives (HHC) • 3% organic revenue growth YoY against strong Q2’20, and 10% growth vs. pre-COVID Q2'19 • Double-digit growth in Packaging, Labeling, Tape & Label and Multiwall bags
Slide 5: Q2 2021 Key Financial Results Summary
5 Q2 2021 Key Financial Results Summary ▪ Strong revenue performance across all segments and geographic regions ‒ +19% organic growth YoY vs. Q2’20 ‒ +9.5% organic growth vs. pre-COVID Q2’19 ‒ Strong volume performance and strategic pricing actions drove organic growth ▪ 21% increase in EBITDA on vo
Slide 6: FY 2021 Planning Assumptions Update
6 FY 2021 Planning Assumptions Update • Maintaining EBITDA guidance range of $455 to $475 million, as stronger forecasted volume growth and accelerated pricing expected to offset higher input costs • Key planning assumptions: ‒ Low-double-digit revenue growth (up from high-single-digit to low-double
Slide 7: Executing Well on 2021 Priorities
7 Executing Well on 2021 Priorities ✓ Volume growth as we support our customers’ success in the current, high-demand and supply-constrained environment ✓ Strategically manage pricing aligned to the value we deliver in this inflationary environment ✓ Release productive capacity through our operationa
Slide 8: Wrap Up
8 Wrap Up • Our agility, collaboration and speed enable H.B. Fuller to excel in a world transformed by COVID-19, supply shortages and input pricing volatility • Delivering market-driven, high value and new, environmentally-sustainable adhesive innovations to meet high customer demand • Strong growth
Slide 9: a =H.B. Fuller
a =H.B. Fuller
Slide 10: Appendix
APPENDIX Q2 2021 Investor Presentation
Slide 11: Regulation G – EPS & EBITDA Reconciliation
11 Regulation G – EPS & EBITDA Reconciliation Three Months Ended Six Months Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Net income attributable to H.B. Fuller $ 49,102 $ 31,613 $ 78,893 $ 41,508 Adjustments: Acquisition project costs 1,302 (1,725) 1,376 (1,512) 1 Organizational realign
Slide 12: Regulation G – EPS & EBITDA Reconciliation cont.
12 Regulation G – EPS & EBITDA Reconciliation cont. 1 Includes costs incurred as a direct result of the organizational realignment program, including compensation for employees supporting the program, consulting expense and operational inefficiencies related to the closure of production facilities a
Slide 13: Regulation G – Segment Information
13 Regulation G – Segment Information Three Months Ended Six Months Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Net Revenue: Hygiene, Health and Consumable Adhesives $ 364,814 $ 344,673 $ 700,482 $ 657,185 Engineering Adhesives 345,373 236,063 658,037 484,958 Construction Adhesives 117
Slide 14: Regulation G – Adjusted Income Reconciliation
14 Regulation G – Adjusted Income Reconciliation Three Months Ended Six Months Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Income before income taxes and income from equity method investments $ 63,608 $ 41,206 $ 102,125 $ 55,089 Adjustments: Acquisition project costs 1,302 (1,725) 1,37
Slide 15: Regulation G – Adjusted Income Tax Reconciliation
15 Regulation G – Adjusted Income Tax Reconciliation Three Months Ended Six Months Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Income Taxes $ (16,660) $ (11,471) $ (27,267) $ (17,082) Adjustments: Acquisition project costs (262) 459 (283) 514 Organizational realignment (465) (562) (1,4
Slide 16: Regulation G – Adjusted Gross Margin Reconciliation
16 Regulation G – Adjusted Gross Margin Reconciliation Three Months Ended Six Months Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Net revenue $ 827,873 $ 674,602 $1,553,777 $1,321,166 Gross profit $ 217,550 $ 184,901 $ 409,914 $ 355,163 Gross profit margin 26.3% 27.4% 26.4% 26.9% Adjust
Slide 17: Regulation G – Adjusted SG&A Reconciliation
17 Regulation G – Adjusted SG&A Reconciliation Three Months Ended Six Months Ended May 29, May 30, May 29, May 30, 2021 2020 2021 2020 Selling, general and administrative expenses $ (148,409) $ (127,998) $ (292,423) $ (269,507) Adjustments: Acquisition project costs 1,239 (1,725) 1,313 (1,512) Organ
Slide 18: Regulation G – Q2'21 Segment EBITDA Reconciliation
18 Regulation G – Q2’21 Segment EBITDA Reconciliation Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller May 29, 2021 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 42,197 $ 34,584 $ 8,515 $ 85,296
Slide 19: Regulation G – FY2021 Segment EBITDA Reconciliation
19 Regulation G – FY2021 Segment EBITDA Reconciliation Hygiene, Health Six Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller May 29, 2021 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 75,367 $ 67,500 $ 5,988 $ 148,855
Slide 20: Regulation G – Q2'20 Segment EBITDA Reconciliation
20 Regulation G – Q2’20 Segment EBITDA Reconciliation Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller May 30, 2020 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 36,804 $ 21,598 $ 7,708 $ 66,110
Slide 21: Regulation G – FY2020 Segment EBITDA Reconciliation
21 Regulation G – FY2020 Segment EBITDA Reconciliation Hygiene, Health Six Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller May 30, 2020 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 61,291 $ 38,433 $ 7,518 $ 107,242
Slide 22: Revenue Performance
22 Revenue Performance Revenue growth versus 2020 Three Months Ended Six Months Ended May 29, 2021 May 29, 2021 Price 1.4% 0.7% Volume 17.4% 14.0% 11 Organic Growth 18.8% 14.7% M&A 0.0% 0.0% F/X 3.9% 2.8% Total H.B. Fuller Net Revenue 22.7% 17.5% Growth Three Months Ended Six Months Ended May 29, 20
Slide 23: Investor contact
Investor contact: Vice President, Investor Relations H.B. Fuller Barbara Doyle (651) 236-5023 Q2 2021 Investor Presentation