Second Quarter 2021 Conference Call

Investor Presentation

St. Paul, MN

June 24, 2021

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, as amended. Such statements reflect our current expectations, and actual results may differ as they are subject to the kinds of risks that are enumerated in the Company's Securities and Exchange Commission (SEC) filings. The Company disclaims any obligation to subsequently revise any forward-looking statements to reflect actual events or circumstances after the date of such statements.

Regulation G

The information presented in this presentation regarding adjusted gross profit and margin, adjusted selling, general and administrative expense, adjusted income before income taxes and income from equity investments, adjusted income taxes, adjusted effective tax rate, adjusted net income, adjusted diluted earnings per share and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) does not conform to U.S. generally accepted accounting principles (U.S. GAAP) and should not be construed as an alternative to the reported results determined in accordance with U.S. GAAP. Management has included this non-GAAP information to assist in understanding the operating performance of the company and its operating segments as well as the comparability of results to the results of other companies. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information is reconciled with reported U.S. GAAP results in the "Regulation G Reconciliation" tables except for our forward-lookingnon-U.S. GAAP measures contained in our fiscal 2021 Planning Assumptions, which the company cannot reconcile to forward-looking U.S. GAAP results without unreasonable effort.

Additional Information

Please refer to our annual report on Form 10-K, filed with the SEC, and available on our website at www.investors.hbfuller.com.

Q2 2021 Investor Presentation

3

Q2 2021 Quarterly Results

Highlights

  • Significant year-over-year sales and earnings growth
    • Organic revenues up 19%
    • Adjusted EBITDA up 21%
    • Adjusted EPS up 38%
  • Record quarter in revenues
    • Strong YoY growth versus Q2'20 and pre-COVID results in Q2'19
    • HBF global sourcing expertise, chemistry and operational agility are differentiators
    • Overcame significant supply chain disruptions to meet increased customer demand
  • Managing significant shortages and rapid increase in input costs
    • Raw material costs increased in the quarter by 10% from 2020 exit
    • Acted quickly to secure raw material, container & packaging supplies, and to raise prices
    • Pricing increases including $150M to date + $75M in Q3 will offset RM increases
    • Additional increases as necessary

Q2 2021 Investor Presentation

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Q2Better2021accountabilityGlobal SegmentStronger teamworkSummary Global vision

Hygiene, Health and Consumables Adhesives (HHC)

  • 3% organic revenue growth YoY against strong Q2'20, and 10% growth vs. pre-COVID Q2'19
  • Double-digitgrowth in Packaging, Labeling, Tape & Label and Multiwall bags
  • EBITDA margin up 70 bps YoY on volume, pricing gains and business realignment savings

Construction Adhesives (CA)

  • 23% organic revenue growth YoY, and 4% growth vs. pre-COVID Q2'19
  • Strong growth in Flooring and Commercial Roofing on share gains and improved demand
  • EBITDA margin down YoY - volume growth offset by higher raw material costs and unfavorable mix

Engineering Adhesives (EA)

  • 40% organic growth YoY, and 11% growth vs. pre-COVID Q2'19
  • Very strong performance in Automotive, RVs, Woodworking, Electronics and Insulating Glass
  • EBITDA margin down 50 bps YoY - volume leverage and pricing offset by significant RM increases

Q2 2021 Investor Presentation

5

Q2 2021 Key Financial Results Summary

  • Strong revenue performance across all segments and geographic regions
    • +19% organic growth YoY vs. Q2'20
    • +9.5% organic growth vs. pre-COVID Q2'19
    • Strong volume performance and strategic pricing actions drove organic growth
  • 21% increase in EBITDA on volume leverage, pricing and operational efficiencies
    • Higher raw material costs impacted gross margins vs. last year
    • SG&A improved by 130 bps (% of revenue) on volume leverage and restructuring savings
    • 38% increase in adjusted earnings per share
  • Higher working capital requirements to support substantial growth in sales
    • Reflects normal seasonality and input cost increases
    • Net Working Capital at 16.7% of sales improved 120 bps vs. Q1'21
    • $61.5M of debt reduction YTD; up 20% YoY and on track for $200M annual paydown
  • Capital investments aligned with annual target

Q2 2021 Investor Presentation

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H.B. Fuller Company published this content on 24 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 June 2021 14:06:05 UTC.