H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q1 2022 Earnings Presentation
21 slides from H. B. Fuller's earnings presentation, Mar 24, 2022
Slide 1: First Quarter 2022 Conference Call
First Quarter 2022 Conference Call Investor Presentation St. Paul, MN March 24, 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: Q1 2022 Results Highlights
3 Q1 2022 Results Highlights • Strong start to fiscal 2022 ‒ Organic revenue up 21% year over year ‒ Adjusted EPS of $0.80, up 21% year over year ‒ Adjusted EBITDA of $113M, up 12% year over year • Strong volume growth and pricing performance across the business ‒ Mid-teens or higher organic revenue
Slide 4: Q1 2022 Global Segment Summary
4 Q1Better 2022 Global Segment accountability Summary Global vision Stronger teamwork Hygiene, Health and Consumables Adhesives (HHC) • 21% organic revenue growth YoY • Strong growth across HHC, especially Packaging, Health and Beauty and Tapes and Labels • EBITDA +4% YoY; volumes + pricing to drive
Slide 5: Key Financial Results Summary
5 Key Financial Results Summary ▪ Strong revenue growth in the quarter ‒ Net revenue up 18% and organic revenue up 21% versus Q1’21 ‒ Volumes up 6.1% and 14.7% growth from pricing ‒ Double-digit organic growth in each GBU; strong 38% increase in Construction Adhesives ▪ Volume growth, pricing gains
Slide 6: 2022 Full Year Financial Guidance
6 2022 Full Year Financial Guidance Updating for Apollo and Fourny acquisitions and strong Q1’22 • Organic revenue growth of 15% to 20%, excluding 3% to 4% unfavorable FX impact and ~$60M contribution from Apollo and Fourny acquisitions • Adjusted EPS of $4.10 - $4.35, up 18% to 25% year over year •
Slide 7: Wrap Up
7 Wrap Up • Creating momentum through new innovations and customer wins • Execution of our strategy, decisive actions and collaborative culture drive our success • Innovation, agility and speed differentiate our performance • Executing plans to deliver mid to high teens revenue & earnings growth in
Slide 8: H.B. Fuller Investor Day April 13, 2022
8 H.B. Fuller Investor Day April 13, 2022 World Headquarters in St. Paul Minnesota or Virtual 8 to 2pm CT, including tour of technical center Info: investors@hbfuller.com Q1 2022 Investor Presentation
Slide 9: H.B. Fuller
a =H.B. Fuller
Slide 10: Appendix
APPENDIX Q1 2022 Investor Presentation
Slide 11: Revenue Performance
11 Revenue Performance Three Months Ended February 26, 2022 Price 14.7% Volume 6.1% Organic Growth 13 20.8% M&A 0.9% Constant currency 21.7% F/X (3.7)% Total H.B. Fuller Net Revenue Growth 18.0% Revenue growth versus 2021 Three Months Ended February 26, 2022 Net Constant Organic Revenue F/X Currency
Slide 12: Regulation G – EPS & EBITDA Reconciliation
12 Regulation G – EPS & EBITDA Reconciliation Three Months Ended February 26, February 27, 2022 2021 Net income attributable to H.B. Fuller $ 38,306 $ 29,791 Adjustments: Acquisition project costs1 5,857 73 Organizational realignment2 1,629 3,635 Royal restructuring and integration3 398 1,282 Projec
Slide 13: Regulation G – EPS & EBITDA Reconciliation cont.
13 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 14: Regulation G – Segment Information
14 Regulation G – Segment Information Three Months Ended February 26, February 27, 2022 2021 Net Revenue: Hygiene, Health and Consumable Adhesives $ 389,538 $ 335,669 Engineering Adhesives 353,977 312,663 Construction Adhesives 112,967 77,572 Corporate unallocated - - Total H.B. Fuller $ 856,482 $ 7
Slide 15: Regulation G – Adjusted Income Reconciliation
15 Regulation G – Adjusted Income Reconciliation Three Months Ended February 26, February 27, 2022 2021 Income before income taxes and income from equity method investments $ 46,885 $ 38,517 Adjustments: Acquisition project costs 1 5,857 73 Organizational realignment 2 1,629 3,635 3 Royal restructur
Slide 16: Regulation G – Adjusted Income Tax Reconciliation
16 Regulation G – Adjusted Income Tax Reconciliation Three Months Ended February 26, February 27, 2022 2021 Income Taxes $ (10,148) $ (10,607) Adjustments: 1 Acquisition project costs (1,678) (20) 2 Organizational realignment (466) (1,013) 3 Royal restructuring and integration (114) (357) Project On
Slide 17: Regulation G – Adjusted Gross Margin Reconciliation
17 Regulation G – Adjusted Gross Margin Reconciliation Three Months Ended February 26, February 27, 2022 2021 Net revenue $ 856,482 $ 725,904 Gross profit $ 212,893 $ 192,364 Gross profit margin 24.9% 26.5% Adjustments: Acquisition project costs 1 662 - 2 Organizational realignment 263 249 3 Royal r
Slide 18: Regulation G – Adjusted SG&A Reconciliation
18 Regulation G – Adjusted SG&A Reconciliation Three Months Ended February 26, February 27, 2022 2021 Selling, general and administrative expenses $ (155,894) $ (144,014) Adjustments: 1 Acquisition project costs 5,195 73 Organizational realignment 2 1,354 3,387 Royal restructuring and integration 3
Slide 19: Regulation G – Q1'22 Segment EBITDA Reconciliation
19 Regulation G – Q1’22 Segment EBITDA Reconciliation Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller February 26, 2022 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 35,137 $ 34,737 $ 6,683 $ 76
Slide 20: Regulation G – Q1'21 Segment EBITDA Reconciliation
20 Regulation G – Q1’21 Segment EBITDA Reconciliation Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller February 27, 2021 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 33,170 $ 32,916 $ (2,528) $
Slide 21: Investor contact
Investor contact: Vice President, Investor Relations H.B. Fuller Barbara Doyle (651) 236-5023 Q1 2022 Investor Presentation