H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q3 2021 Earnings Presentation
23 slides from H. B. Fuller's earnings presentation, Sep 23, 2021
Slide 1: Third Quarter 2021 Conference Call
Third Quarter 2021 Conference Call Investor Presentation St. Paul, MN September 23, 2021
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: Q3 2021 Quarterly Results Highlights
3 Q3 2021 Quarterly Results Highlights • Generated 20% revenue growth and adjusted EBITDA ahead of our expectations despite significant raw material headwinds ‒ Organic revenues up 16% vs. Q3’20 and up 13% vs. pre-COVID Q3’19 ‒ Adjusted EBITDA of $111M, up 5% year over year ‒ Adjusted EPS of $0.79,
Slide 4: Q3 2021 Global Segment Summary
4 Q3Better 2021 Global Segment accountability Summary Global vision Stronger teamwork Hygiene, Health and Consumables Adhesives (HHC) • 13% organic revenue growth YoY and 14% organic growth vs. pre-COVID Q3’19 • Strong organic growth across HHC, especially in Packaging, Labeling, Tape & Label • Soli
Slide 5: Q3 2021 Key Financial Results Summary
5 Q3 2021 Key Financial Results Summary ▪ Strong revenue performance versus Q3’202 and pre-Covid Q3’19 ‒ +16% organic revenue growth YoY vs. Q3’20 and 13% compared with Q3’19 ‒ Double-digit YoY organic growth in all three GBUs ‒ Strong volume performance and increased pricing realization drove growt
Slide 6: FY 2021 Planning Assumptions Update
6 FY 2021 Planning Assumptions Update • Revenues – FY’21 revenue growth now anticipated to be 17% to 18% year-over-year (increased from low double-digit growth previous guidance) – Results in anticipated Q4’21 revenue growth of 15% to 17% year-over-year • Adjusted EBITDA – Full year adjusted EBITDA
Slide 7: Executing Well on 2021 Priorities
7 Executing Well on 2021 Priorities ✓ Volume growth as we support our customers’ success in the current, high-demand and supply-constrained environment ✓ Strategically manage pricing aligned to the value we deliver in this inflationary environment ✓ Release productive capacity through our operationa
Slide 8: Wrap Up
8 Wrap Up • Significant raw material shortages, inflation & supply chain disruptions create unprecedented operating challenges • Our agility, speed and innovation enable H.B. Fuller to excel in this environment – Maintaining supply assurance for customers – Delivering consistent business performance
Slide 9: H.B. Fuller
a =H.B. Fuller
Slide 10: Appendix
APPENDIX Q3 2021 Investor Presentation
Slide 11: Regulation G – EPS & EBITDA Reconciliation
11 Regulation G – EPS & EBITDA Reconciliation Three Months Ended Nine Months Ended August 28, August 29, August 28, August 29, 2021 2020 2021 2020 Net income attributable to H.B. Fuller $ 31,616 $ 41,607 $ 110,509 $ 83,115 Adjustments: Acquisition project costs 901 (73) 2,277 (1,584) Organizational
Slide 12: Regulation G – EPS & EBITDA Reconciliation cont.
12 Regulation G – EPS & EBITDA Reconciliation cont. 1 Includes costs incurred as a direct result of the organizational realignment program, including compensation for employees supporting the program, consulting expense and operational inefficiencies related to the closure of production facilities a
Slide 13: Regulation G – Segment Information
13 Regulation G – Segment Information Three Months Ended Nine Months Ended August 28, August 29, August 28, August 29, 2021 2020 2021 2020 Net Revenue: Hygiene, Health and Consumable Adhesives $ 369,439 $ 320,187 $ 1,069,922 $ 977,373 Engineering Adhesives 342,300 276,083 1,000,337 761,040 Construct
Slide 14: Regulation G – Adjusted Income Reconciliation
14 Regulation G – Adjusted Income Reconciliation Three Months Ended Nine Months Ended August 28, August 29, August 28, August 29, 2021 2020 2021 2020 Income before income taxes and income from equity method investments $ 48,727 $ 45,202 $ 150,851 $ 100,291 Adjustments: Acquisition project costs 901
Slide 15: Regulation G – Adjusted Income Tax Reconciliation
15 Regulation G – Adjusted Income Tax Reconciliation Three Months Ended Nine Months Ended August 28, August 29, August 28, August 29, 2021 2020 2021 2020 Income Taxes $ (19,095) $ (5,112) $ (46,362) $ (22,194) Adjustments: Acquisition project costs (212) 18 (495) 423 Organizational realignment (726)
Slide 16: Regulation G – Adjusted Gross Margin Reconciliation
16 Regulation G – Adjusted Gross Margin Reconciliation Three Months Ended Nine Months Ended August 28, August 29, August 28, August 29, 2021 2020 2021 2020 Net revenue $ 826,830 $ 691,463 $2,380,607 $2,012,629 Gross profit $ 193,950 $ 187,844 $ 603,863 $ 543,007 Gross profit margin 23.5% 27.2% 25.4%
Slide 17: Regulation G – Adjusted SG&A Reconciliation
17 Regulation G – Adjusted SG&A Reconciliation Three Months Ended Nine Months Ended August 28, August 29, August 28, August 29, 2021 2020 2021 2020 Selling, general and administrative expenses $ (134,497) $ (129,113) $ (426,921) $ (398,620) Adjustments: Acquisition project costs 901 (73) 2,214 (1,58
Slide 18: Regulation G – Q3'21 Segment EBITDA Reconciliation
18 Regulation G – Q3’21 Segment EBITDA Reconciliation Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller August 28, 2021 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 32,924 $ 36,599 $ 5,516 $ 75,0
Slide 19: Regulation G – FY2021 Segment EBITDA Reconciliation
19 Regulation G – FY2021 Segment EBITDA Reconciliation Hygiene, Health Nine Months Ended and Consumable Engineering Construction Corporate H.B. Fuller August 28, 2021 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 108,291 $ 104,099 $ 11,504 $ 22
Slide 20: Regulation G – Q3'20 Segment EBITDA Reconciliation
20 Regulation G – Q3’20 Segment EBITDA Reconciliation Hygiene, Health Three Months Ended: and Consumable Engineering Construction Corporate H.B. Fuller August 29, 2020 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 33,688 $ 31,334 $ 5,468 $ 70,4
Slide 21: Regulation G – FY2020 Segment EBITDA Reconciliation
21 Regulation G – FY2020 Segment EBITDA Reconciliation Hygiene, Health Nine Months Ended and Consumable Engineering Construction Corporate H.B. Fuller August 29, 2020 Adhesives Adhesives Adhesives Total Unallocated Consolidated Net income attributable to H.B. Fuller $ 94,979 $ 69,767 $ 12,987 $ 177,
Slide 22: Revenue Performance
22 Revenue Performance Three Months Nine Months Ended Ended August 28, 2021 August 28, 2021 Price 6.3% 2.6% Volume 10.1% 12.7% Organic Growth 12 16.4% 15.3% F/X 3.2% 3.0% Total H.B. Fuller Net Revenue Growth 19.6% 18.3% Revenue growth versus 2020 Three Months Ended Nine Months Ended August 28, 2021
Slide 23: Investor contact
Investor contact: Vice President, Investor Relations H.B. Fuller Barbara Doyle (651) 236-5023 Q3 2021 Investor Presentation