H. B. Fuller Company · NYSE:FUL

H. B. Fuller — Q1 2023 Earnings Presentation

16 slides from H. B. Fuller's earnings presentation, Mar 30, 2023

  1. Slide 1: Reaching New Heights

    Reaching New Heights H.B. Fuller Company First Quarter 2023 Conference Call MARCH 30, 2023

  2. Slide 2: Disclosure

    2 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

  3. Slide 3: Highlights

    3 Highlights Organic Revenue Adjusted Gross Margin Adjusted EBITDA Margin Stable +190bps YOY 13.6% Team executed exceptionally well to deliver solid Q1 results, in-line with our expectations, despite challenging demand conditions Diligent management of price/raw material dynamics drove significant i

  4. Slide 4: Reducing Fixed Costs

    4 Restructuring Initiated Reducing Fixed Costs  Prepared for a mild global recession in 2023  Well positioned to grow EBITDA in this scenario  Reducing fixed costs, particularly in CA, to align cost structure with current economic outlook  Actions consistent with longer-term strategic objectives

  5. Slide 5: Pricing/Raw Material Management: On Track

    5 Pricing/Raw Material Management On Track  Rate of aggregate raw material inflation trending according to our expectations  On track to deliver $130M - $160M in net benefit from price/raw material cost management, offset by $80M in headwinds in FY 2023  Dynamic raw material cost environment cont

  6. Slide 6: Global Business Unit Update

    6 Global Business Unit Update Hygiene, Health, and Consumable Adhesives (HHC)  Organic revenue up 5% YOY and adjusted EBITDA margin increased 360 basis points to 15.6%  Strength in hygiene, packaging, tissue & towel, graphic arts, and heath & beauty market segments  Favorable price and raw materi

  7. Slide 7: Regional Perspective

    7 Regional Perspective Americas  Organic revenue down 4% YOY; excluding CA, organic revenue up low single digits  Region remains relatively stable, but macro economic conditions slowing as higher interest rates temper demand EIMEA  Organic revenue up 5% YOY, with both HHC and EA combined generati

  8. Slide 8: Financial Summary: In-Line with Our Expectations

    8 Financial Summary In-Line with Our Expectations  Revenue down 5.5% YOY, flat at constant currency  Adjusted gross margin increased 190 basis points YOY on favorable price/raw material dynamics  Adjusted SG&A up 3% YOY, on higher wage inflation, offset by cost management and favorable exchange 

  9. Slide 9: FY 2023 Financial Guidance Update

    9 FY 2023 Financial Guidance Update • Net revenue expected to be down 1% to 4% YOY Revenue • Organic revenue expected to be down 1% to up 1% YOY • Negative 1% – 2% YOY FX • More heavily weighted to 1H FY23 • $580 to $610 million; 42% - 43% in 1H FY23 Adjusted EBITDA • 9% – 15% growth YOY • $4.10 – $

  10. Slide 10: Culture is a Strategic Differentiator

    10 Culture is a Strategic Differentiator Investor’s Business • Evaluated over 6,000 companies globally Daily • Selections based on sustainability focus while exceeding ROI goals • H.B. Fuller ranked number 57 of 100 Top 100 ESG • We remain committed to being strong Companies in 2022 environmental st

  11. Slide 11: Summary: Performing Well

    11 Summary Performing Well  Year started largely as we expected, in-line with guidance  Prepared for the slowing macro-economic conditions  Confident we will achieve our full-year guidance  Realizing gross margin expansion according to our expectations  Pricing/raw material cost dynamic benefit

  12. Slide 12: First Quarter 2023 Conference Call

    12 First Quarter 2023 Conference Call

  13. Slide 13: Appendix

    APPENDIX 7: 7 wy, H.B. Fuller Connecting what matters.™

  14. Slide 14: Economic Influence

    10 Economic Influence LOWER Influence  HHC  Utilities & Infrastructure  Automotive* MODERATE Influence  Durable goods  Filters  Textile HIGHER Influence  Construction  Aerospace  RV * Automotive would typically fall into the “Moderate” category, but we have reflected it as “Low” due to pent

  15. Slide 15: Regulation G Reconciliations

    10 Regulation G Reconciliations Please refer to the Company’s latest earnings release for all Regulation G reconciliations by clicking here First Quarter 2023 Conference Call

  16. Slide 16: Thank You

    H.B. Fuller Connecting what matters.”

H. B. Fuller Company — Q1 2023 Earnings Presentation on 6ix