H. B. Fuller Company · NYSE:FUL
H. B. Fuller — Q1 2020 Earnings Presentation
21 slides from H. B. Fuller's earnings presentation, Mar 26, 2020
Slide 1: First Quarter 2020 Conference Call
First Quarter 2020 Conference Call Investor Presentation St. Paul, MN March 26, 2020
Slide 2: COVID-19
2 COVID-19 • Unparalleled event impacting humans’ health and global economics • Significant near term disruptions with longer-term impacts anticipated • Applying our business continuity practices successfully deployed in Q1 to operations in rest of world, as recovery in China emerges • H.B. Fuller i
Slide 3: Q1'20 Quarterly Results Summary
3 Q1’20 Quarterly Results Summary • Strong Q1’20 in-line with EBITDA guidance despite sales impact of COVID-19 in China • Excluding COVID-19 impacts, organic growth > 1% with growth in all segments • Rapidly learned in China how to manage health safety, social distancing, supply chains, quarantines
Slide 4: Q1 2020 Global Segment Summary
4 Q1Better 2020 Global Segment accountability Summary Global vision Stronger teamwork Hygiene, Health and Consumables Adhesives (HHC) • Organic sales growth +1% year-over-year; +2% estimated, excluding COVID-19 impact in China • EBITDA margin up 100 basis points on mix, restructuring savings and low
Slide 5: Q1 2020 Key Financial Results Summary
5 Q1 2020 Key Financial Results Summary • Adjusted EBITDA and EPS in line with guidance despite extensive disruption in China in the quarter resulting from COVID-19 impacts • Organic revenue -1.3%; up +1% excluding estimated COVID-19 impacts • Adjusted EPS of $0.34 in line with guidance despite esti
Slide 6: 2020 Current Planning Assumptions
6 2020 Current Planning Assumptions • Q2’20 revenue estimated to be down between 5% and 15% year-over-year • Q2’20 adjusted EBITDA estimated in the range of $90M to $100M • Preparing for COVID-19 impacts to ramp up around the world as China stabilizes • Planning for recessionary forces to impact glo
Slide 7: Wrap-Up
7 Wrap-Up • Essential supplier of adhesives for health, hygiene, packaging and consumer goods and digital connectivity • FUL’s global supply chain, global coordination and agility is competitive advantage • Cash generative business and strong financial position with ample liquidity and room under de
Slide 8: H.B. Fuller
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Slide 9: Appendix
APPENDIX Q1 2020 Investor Presentation
Slide 10: Anticipated Near-Term End Market Impacts
10 Anticipated Near-Term End Market Impacts 2020 Planning Assumptions Favorably Impacted - Hygiene - Labeling - Health & Beauty - Paper, Tissue - Packaging - Tissue & Towel 47% Down Moderately - Construction - Insulating Glass - Filters - Electronics 21% - Durable Consumer Goods 32% Down Significant
Slide 11: Regulation G – EPS & EBITDA Reconciliation
11 Regulation G – EPS & EBITDA Reconciliation 13 Weeks Ended 13 Weeks Ended February 29, 2020 March 2, 2019 Net income attributable to H.B. Fuller $ 9,895 $ 12,244 Adjustments: Acquisition project costs 268 84 Organizational realignment 3,604 350 Royal restructuring and integration 3,750 4,365 Tax r
Slide 12: Regulation G – Q1 Segment Information
12 Regulation G – Q1 Segment Information 13 Weeks Ended 13 Weeks Ended February 29, 2020 March 2, 2019 Net Revenue: Hygiene, Health and Consumable Adhesives $ 312,512 $ 319,854 Engineering Adhesives 248,895 264,372 Construction Adhesives 85,157 82,790 Corporate Unallocated - 5,919 Total H.B. Fuller
Slide 13: Regulation G – Adjusted Income Reconciliation
13 Regulation G – Adjusted Income Reconciliation 13 Weeks Ended 13 Weeks Ended February 29, 2020 March 2, 2019 Income before income taxes and income from equity method investments $ 13,883 $ 13,823 Adjustments: Acquisition project costs 213 115 Organizational realignment 2,865 475 Royal restructurin
Slide 14: Regulation G – Adjusted Income Tax Reconciliation
14 Regulation G – Adjusted Income Tax Reconciliation 13 Weeks Ended 13 Weeks Ended February 29, 2020 March 2, 2019 Income Taxes $ (5,611) $ (3,140) Adjustments: Acquisition project costs 55 (30) Organizational realignment 739 (124) Royal restructuring and integration 765 (1,552) Tax reform (9) (20)
Slide 15: Regulation G – Adjusted Gross Margin Reconciliation
15 Regulation G – Adjusted Gross Margin Reconciliation 13 Weeks Ended 13 Weeks Ended February 29, 2020 March 2, 2019 Net revenue 646,564 672,935 Gross profit $ 170,262 $ 179,925 Gross profit margin 26.3% 26.7% Adjustments: Organizational realignment 81 48 Royal restructuring and integration 900 1,41
Slide 16: Regulation G – Adjusted SG&A Reconciliation
16 Regulation G – Adjusted SG&A Reconciliation 13 Weeks Ended 13 Weeks Ended February 29, 2020 March 2, 2019 Selling, general and administrative expenses $ (141,509) $ (145,713) Adjustments: Acquisition project costs 213 115 Organizational realignment 2,784 427 Royal restructuring and integration 2,
Slide 17: Regulation G – Q1'20 Segment EBITDA Reconciliation
17 Regulation G – Q1’20 Segment EBITDA Reconciliation Hygiene, Health and Consumable Engineering Construction Corporate H.B. Fuller Adhesives Adhesives Adhesives Total Unallocated Consolidated 13 Weeks Ended February 29, 2020 Net income attributable to H.B. Fuller $ 24,487 $ 16,835 $ (189) $ 41,133
Slide 18: Regulation G – Q1'19 Segment EBITDA Reconciliation
18 Regulation G – Q1’19 Segment EBITDA Reconciliation Hygiene, Health and Consumable Engineering Construction Corporate H.B. Fuller Adhesives Adhesives Adhesives Total Unallocated Consolidated 13 Weeks Ended March 2, 2019 Net income attributable to H.B. Fuller $ 22,236 $ 23,065 $ (669) $ 44,632 $ (3
Slide 19: Revenue Performance Components
19 Revenue Performance Components 13 Weeks Ended February 29, 2020 Total Price (1.1%) Volume (0.2%) Organic Growth (Decline) (1.3%) M&A (0.9%) F/X (1.7%) Total H.B. Fuller Net Revenue Decline (3.9%) 13 Weeks Ended February 29, 2020 Organic Growth Net Revenue F/X M&A (Decline) Hygiene, Health and Con
Slide 20: Safe Harbor & Regulation G
20 Safe Harbor & Regulation G Safe Harbor Statement Certain matters discussed today may include 'forward looking statements' as that term is defined under the Private Securities Litigation Reform Act of 1995. Since such statements reflect our current expectations, actual results may differ as they a
Slide 21: Investor contact
Investor contact: Vice President, Investor Relations H.B. Fuller Barbara Doyle (651) 236-5023 Q1 2020 Investor Presentation