H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q4 2020 Earnings Presentation
21 slides from H. B. Fuller's earnings presentation, Jan 26, 2021
Slide 1: Fourth Quarter 2020 Conference Call
Fourth Quarter 2020 Conference Call Investor Presentation St. Paul, MN January 26, 2021
Slide 2: Q4 2020 Quarterly Results Highlights
2 Q4 2020 Quarterly Results Highlights • Q4’20 results up YoY on higher sales and business realignment efficiencies ‒ Revenues up 5% with organic growth in all 3 business segments ‒ Adjusted EBITDA up 9% ‒ Adjusted EPS up 21% ‒ Strong comparisons against pre-COVID business conditions in Q4’19 • Resu
Slide 3: Q4 2020 Global Segment Summary
3 Q4Better 2020 Global Segment accountability Summary Global vision Stronger teamwork Hygiene, Health and Consumables Adhesives (HHC) • 5% organic growth YoY – broad strength across regions and products • Double-digit growth in Flexible Packaging, Tape & Labels • EBITDA margin up 270 bps YoY on volu
Slide 4: Q4 2020 Key Financial Results Summary
4 Q4 2020 Key Financial Results Summary ▪ Broad year-on-year improvement in nearly all key financial metrics in fourth quarter ▪ Growth of 5% organic revenues, 9% EBITDA, and 21% EPS above expectations ▪ Gross Margin and SG&A include variable compensation true-up for better than expected Q4’20 resul
Slide 5: FY 2021 Planning Assumptions
5 FY 2021 Planning Assumptions • Planning for on-going business recovery in an environment that continues to be impacted by COVID-19-related restrictions and corresponding recessionary impacts • Low to mid-single digit organic revenue growth • Approx. 10% increase in adjusted EBITDA ‒ Supported by s
Slide 6: Wrap-Up
6 Wrap-Up • Maintained core priorities: health & safety of our employees and leveraging our technology and vast global capabilities to ensure our customers’ business continuity • Dedicated focus on adhesives positions H.B. Fuller to move first and fastest with a clear vision and mission – no distrac
Slide 7: H.B. Fuller
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Slide 8: Appendix
APPENDIX Q4 2020 Investor Presentation
Slide 9: Regulation G – EPS & EBITDA Reconciliation
9 Regulation G – EPS & EBITDA Reconciliation 13 Weeks Ended 52 Weeks Ended November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Net income attributable to H.B. Fuller $ 40,604 $ 32,214 $ 123,719 $ 130,817 Adjustments: Acquisition project costs 999 45 (162) 2,204 Organizational rea
Slide 10: Regulation G – Q4 Segment Information
10 Regulation G – Q4 Segment Information 13 Weeks Ended November 28, 2020 November 30, 2019 Net Revenue: Hygiene, Health and Consumable Adhesives $ 355,413 $ 342,120 Engineering Adhesives 327,273 303,393 Construction Adhesives 94,954 93,593 Corporate unallocated - - Total H.B. Fuller $ 777,640 $ 739
Slide 11: Regulation G – Full Year Segment Information
11 Regulation G – Full Year Segment Information 52 Weeks Ended November 28, 2020 November 30, 2019 Net Revenue: Hygiene, Health and Consumable Adhesives $ 1,332,786 $ 1,328,286 Engineering Adhesives 1,088,313 1,158,403 Construction Adhesives 369,170 396,580 Corporate unallocated - 13,731 Total H.B.
Slide 12: Regulation G – Adjusted Income Reconciliation
12 Regulation G – Adjusted Income Reconciliation 13 Weeks Ended 52 Weeks Ended November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Income before income taxes and income from equity method investments $ 58,065 $ 40,580 $ 158,356 $ 172,828 Adjustments: Acquisition project costs 1,0
Slide 13: Regulation G – Adjusted Income Tax Reconciliation
13 Regulation G – Adjusted Income Tax Reconciliation 13 Weeks Ended 52 Weeks Ended November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Income Taxes $ (19,727) $ (10,506) $ (41,921) $ (49,408) Adjustments: Acquisition project costs (82) (17) 340 (500) Organizational realignment (4
Slide 14: Regulation G – Adjusted Gross Margin Reconciliation
14 Regulation G – Adjusted Gross Margin Reconciliation 13 Weeks Ended 52 Weeks Ended November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Net revenue 777,640 739,106 2,790,269 2,897,000 Gross profit $ 213,642 $ 201,217 $ 756,649 $ 806,922 Gross profit margin 27.5% 27.2% 27.1% 27.9
Slide 15: Regulation G – Adjusted SG&A Reconciliation
15 Regulation G – Adjusted SG&A Reconciliation 13 Weeks Ended 52 Weeks Ended November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Selling, general and administrative expenses $ (139,712) $ (148,521) $ (538,332) $ (580,928) Adjustments: Acquisition project costs 997 63 (587) 2,703
Slide 16: Regulation G – Q4'20 Segment EBITDA Reconciliation
16 Regulation G – Q4’20 Segment EBITDA Reconciliation Hygiene, Health 13 Weeks Ended: and Consumable Engineering Construction Corporate H.B. Fuller November 28, 2020 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 43,140 $ 40,046 $ 2,894 $ 86,080
Slide 17: Regulation G – FY 2020 Segment EBITDA Reconciliation
17 Regulation G – FY 2020 Segment EBITDA Reconciliation Hygiene, Health 52 Weeks Ended: and Consumable Engineering Construction Corporate H.B. Fuller November 28, 2020 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 138,119 $ 109,813 $ 15,881 $ 2
Slide 18: Regulation G – Q4'19 Segment EBITDA Reconciliation
18 Regulation G – Q4’19 Segment EBITDA Reconciliation Hygiene, Health 13 Weeks Ended: and Consumable Engineering Construction Corporate H.B. Fuller November 30, 2019 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 31,670 $ 39,202 $ 3,435 $ 74,307
Slide 19: Regulation G – FY 2019 Segment EBITDA Reconciliation
19 Regulation G – FY 2019 Segment EBITDA Reconciliation Hygiene, Health 52 Weeks Ended: and Consumable Engineering Construction Corporate H.B. Fuller November 30, 2019 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 121,237 $ 140,678 $ 20,663 $ 2
Slide 20: Revenue Performance Components
20 Revenue Performance Components 13 Weeks 52 Weeks Ended Ended November 28, 2020 Price (0.3%) (0.6%) Volume 5.0% (1.0%) Organic Growth (Decline) 4.7% (1.6%) M&A 0.0% (0.5%) F/X 0.5% (1.6%) Total H.B. Fuller Net Revenue Growth (Decline) 5.2% (3.7%) 13 Weeks Ended 52 Weeks Ended November 28, 2020 Nov
Slide 21: Investor contact
Investor contact: Vice President, Investor Relations H.B. Fuller Barbara Doyle (651) 236-5023 Q4 2020 Investor Presentation