H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q2 2022 Earnings Presentation
22 slides from H. B. Fuller's earnings presentation, Jun 23, 2022
Slide 1: Reaching New Heights: Second Quarter 2022 Conference Call
Reaching New Heights H.B. Fuller Second Quarter 2022 Conference Call June 23, 2022
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 2022 Results Highlights
3 Q2 2022 Results Highlights • Strong year-over-year performance including record quarterly revenue ‒ Organic revenue up 22% year over year ‒ Adjusted EPS of $1.11, up 18% year over year ‒ Adjusted EBITDA of $139M, up 14% year over year • Strong performance across all three GBU’s ‒ Mid-teens or high
Slide 4: Q2 2022 Global Segment Summary
4 Q2Better 2022 Global Segment accountability Summary Global vision Stronger teamwork Hygiene, Health and Consumables Adhesives (HHC) • 25% organic revenue growth YoY • Strong growth across HHC, especially Health & Beauty, Packaging and Labeling markets • EBITDA +8% YoY; strong volumes + pricing off
Slide 5: Key Financial Results Summary
5 Key Financial Results Summary ▪ Continued strong revenue performance in the quarter ‒ Net revenue up 20% and organic revenue up 22% versus Q2’21 ‒ Volumes up 3.4% and 18.5% growth from pricing ‒ Double-digit organic growth in each GBU ▪ Volume growth, pricing gains and cost controls drove strong p
Slide 6: 2022 Full Year Financial Guidance
6 2022 Full Year Financial Guidance • Adjusted EBITDA of $530 - $550 million, up ~14% to 18% year over year – Expect double-digit year-over-year growth in all four quarters – Expect ~29% of full year EBITDA in Q4’22 reflecting additional 53rd week of activity • Adjusted EPS of $4.10 - $4.35, up 18%
Slide 7: Consistently Delivering Differentiated Results
7 Consistently Delivering Differentiated Results • Exceptional second quarter results build on a strong trend • Our unique capabilities to deliver critical, innovative adhesives drives our growth • Consistent operational execution enables us to deliver truly differentiated performance for our custom
Slide 8: a =H.B. Fuller
a =H.B. Fuller
Slide 9: Appendix
APPENDIX y | ww. H.B. Fuller Connecting what matters.”
Slide 10: Revenue Performance
10 Revenue Performance Three Months Six Months Ended Ended May 28, 2022 May 28, 2022 Price 18.5% 16.8% Volume 3.4% 4.6% Organic Growth13 21.9% 21.4% M&A 2.0% 1.5% Constant currency 23.9% 22.9% F/X (3.9)% (3.8)% Total H.B. Fuller Net Revenue Growth 20.0% 19.1% Three Months Ended Six Months Ended May
Slide 11: Regulation G – EPS & EBITDA Reconciliation
11 Regulation G – EPS & EBITDA Reconciliation Three Months Ended Six Months Ended May 28, May 29, May 28, May 29, 2022 2021 2022 2021 Net income attributable to H.B. Fuller $ 47,203 $ 49,102 $ 85,509 $ 78,893 Adjustments: Acquisition project costs1 2,014 1,302 7,871 1,376 2 Organizational realignmen
Slide 12: Regulation G – EPS & EBITDA Reconciliation cont.
12 Regulation G – EPS & EBITDA Reconciliation cont. 1 Acquisition project costs include costs related to integrating and accounting for acquisitions. 2 Organizational realignment includes costs incurred as a direct result of the organizational realignment program, including compensation for employee
Slide 13: Regulation G – Segment Information
13 Regulation G – Segment Information Three Months Ended Six Months Ended May 28, May 29, May 28, May 29, 2022 2021 2022 2021 Net Revenue: Hygiene, Health and Consumable Adhesives $ 437,889 $ 364,814 $ 827,427 $ 700,482 Engineering Adhesives 405,346 345,373 759,323 658,037 Construction Adhesives 150
Slide 14: Regulation G – Adjusted Income Reconciliation
14 Regulation G – Adjusted Income Reconciliation Three Months Ended Six Months Ended May 28, May 29, May 28, May 29, 2022 2021 2022 2021 Income before income taxes and income from equity method investments $ 69,777 $ 63,608 $ 116,662 $ 102,125 Adjustments: Acquisition project costs1 2,014 1,302 7,87
Slide 15: Regulation G – Adjusted Income Tax Reconciliation
15 Regulation G – Adjusted Income Tax Reconciliation Three Months Ended Six Months Ended May 28, May 29, May 28, May 29, 2022 2021 2022 2021 Income Taxes $ (23,616) $ (16,660) $ (33,765) $ (27,267) Adjustments: 1 Acquisition project costs (531) (262) (2,209) (283) 2 Organizational realignment (744)
Slide 16: Regulation G – Adjusted Gross Margin Reconciliation
16 Regulation G – Adjusted Gross Margin Reconciliation Three Months Ended Six Months Ended May 28, May 29, May 28, May 29, 2022 2021 2022 2021 Net revenue $ 993,258 $ 827,873 $1,849,739 $1,553,777 Gross profit $ 253,521 $ 217,550 $ 466,413 $ 409,914 Gross profit margin 25.5% 26.3% 25.2% 26.4% Adjust
Slide 17: Regulation G – Adjusted SG&A Reconciliation
17 Regulation G – Adjusted SG&A Reconciliation Three Months Ended Six Months Ended May 28, May 29, May 28, May 29, 2022 2021 2022 2021 Selling, general and administrative expenses $ (166,007) $ (148,409) $ (321,898) $ (292,423) Adjustments: Acquisition project costs1 2,252 1,239 7,447 1,313 Organiza
Slide 18: Regulation G – Q2'22 Segment EBITDA Reconciliation
18 Regulation G – Q2’22 Segment EBITDA Reconciliation Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller May 28, 2022 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 46,186 $ 45,077 $ 13,613 $ 104,87
Slide 19: Regulation G – FY2022 Segment EBITDA Reconciliation
19 Regulation G – FY2022 Segment EBITDA Reconciliation Hygiene, Health Six Months Ended and Consumable Engineering Construction Corporate H.B. Fuller May 28, 2022 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 81,323 $ 79,814 $ 20,296 $ 181,433
Slide 20: Regulation G – Q2'21 Segment EBITDA Reconciliation
20 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 21: Regulation G – FY2021 Segment EBITDA Reconciliation
21 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 22: Thank You
Thank You Investor Contact: Barbara Doyle, Vice President, Investor Relations (651) 236-5023