H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q2 2023 Earnings Presentation
16 slides from H. B. Fuller's earnings presentation, Jun 29, 2023
Slide 1: Second Quarter 2023 Conference Call
Title Slide Second Quarter 2023 Conference Call June 29th, 2023 ® 2023 H.B. Fuller
Slide 2: Disclosure: Safe Harbor Statement
Disclosure 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, as amended. Such s
Slide 3: Second Quarter Highlights
Second Quarter Highlights Adjusted Gross Margin Adjusted EBITDA Margin Operating Cash Flow Up 330 bps YOY Up 190 bps YOY Up $94M YOY Up 210 bps Sequentially Up 230 bps Sequentially Second quarter profit performance was strong and in-line with our expectations Successful price and raw material cost a
Slide 4: Global Business Unit Update
Global Business Unit Update Health, Hygiene, and Engineering Construction Consumable Adhesives Adhesives Adhesives • Organic revenue declined 5.5% • Organic revenue declined 9.0% • Organic sales declined 14.2% • Adjusted EBITDA margin • Adjusted EBITDA margin • Adjusted EBITDA margin increased 290 b
Slide 5: Regional Perspective
Regional Perspective Americas • Organic revenue decreased 9.7% YOY • Customer destocking moderated in CA, but accelerated in HHC and EA • Restructuring benefits began to positively impact profitability EIMEA • Organic revenue decreased 6.3% YOY • Customer destocking moderated in CA, but accelerated
Slide 6: M&A Strategy
M&A Strategy Driving Strategic Growth • M&A is a strategic tool to accelerate realization of many of our growth opportunities • Robust pipeline of proprietary deals • Strong cash flow profile enables us to annually allocate $200M - $300M in capital for strategic tuck-in acquisitions • Acquire at pos
Slide 7: 2023 M&A Collection: Balance Across the Matrix
2023 M&A Collection | Balance Across the Matrix Beardow Adams Commercial Expansion Consolidation • Added share in Packaging and Labeling and an expanded distribution network Current Region • Significant synergies from overlapping Adhezion Beardow footprint and raw material purchasing Aspen Biomedica
Slide 8: 2023 M&A Collection
2023 M&A Collection Driving Value Creation • Completed 5 tuck-in acquisitions in FY2023 YTD • Collection will contribute approximately $100M in Sales and $8M in EBITDA in FY2023 • Collection will contribute approximately $200M in Sales and $50M in EBITDA by FY2025 • Combined purchase price of approx
Slide 9: Q2 Financial Summary
Q2 Financial Summary Strong Profitability Improvement • Organic sales declined 8.3% YOY, driven by customer destocking actions • Adjusted gross profit margin was 29%, up 330 basis points YOY • Adjusted SG&A was essentially flat YOY • Adjusted EBITDA $143 Million, at mid-point of guidance range, and
Slide 10: FY 2023 Financial Guidance Update
FY 2023 Financial Guidance Update Revenue • Now expect both net revenue and organic revenue to decline 3% to 5% YOY • Now expect impact of FX, acquisitions, and the extra week in FY22 to be neutral vs FY23 Net Interest Expense • Now expect net interest expense to be in the range of $125M to $135M De
Slide 11: Difference-making Innovation
Difference-making Innovation 2023 ASC Innovation Award EV Protect, A lightweight encapsulant for lithium-ion batteries used in the production of electric vehicles Industry Leading Technology Full Care 900 Series, Enabling the industry’s first biodegradable sanitary product ® 2023 H.B. Fuller
Slide 12: Summary: Confidence in a Stronger Second Half
Summary Confidence in a Stronger Second Half • Well-positioned in the marketplace and continue to expect strong growth in adjusted EBITDA and operating cash flow in fiscal 2023 • Diversification of our portfolio and robust innovation pipeline engender continual product line upgrades • Confidence in
Slide 13: Appendix
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Slide 14: Strategic M&A
Strategic M&A Health, Hygiene, and Engineering Construction Consumable Adhesives Adhesives Adhesives UK-based Adhesives company United Arab Emirates-based US-based adhesives company that with a strong presence in the adhesives manufacturer that offers manufactures and distributes packaging and label
Slide 15: Strategic M&A
Strategic M&A Health, Hygiene, and Engineering Consumable Adhesives Adhesives Finland-based producer of Minnesota-based contract research ecological, innovative tapes and organization that is known for adhesives for cardboard and superior understanding of materials plywood industries science, engine
Slide 16: Regulation G Reconciliations
Regulation G Reconciliations Please refer to the Company’s latest earnings release for all Regulation G reconciliations by clicking here ® 2023 H.B. Fuller