Reaching New Heights
H.B. Fuller Company
Fourth Quarter 2022
Conference Call
JANUARY 19, 2023
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 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 2022 financial guidance, 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.
Fourth Quarter 2022 Conference Call
3
FY 2022 Highlights
Organic Revenue Growth | Adjusted EBITDA Growth | Adjusted EPS Growth |
+17% | +14% | +15% |
Exceptional financial results, driven by market share gains, appropriately strong pricing actions, and diligent execution of our strategy
Drove strong double-digit growth in organic revenue, adjusted EBITDA, and adjusted EPS
Delivered another year of strong cash flow performance, with operating cash flow up 20% year-on-year to $257 million
Diverse market exposures, pricing discipline, cost discipline, and declining raw material cost inflation position us well
Fourth Quarter 2022 Conference Call
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Q4 2022 Highlights
Organic Revenue Growth | Adjusted EBITDA Growth | Adjusted EBITDA Margin |
+6% | +5% | 14.7% |
Organic revenue up 6%, driven by responsible pricing actions
HHC and EA both achieved strong year-on-year organic growth
Construction Adhesives customer de-stocking actions, COVID-related disruption in China, and foreign currency impacts were more challenging than expected
Adjusted EBITDA margin increased for third consecutive sequential quarter; remained stable year-on-year at 14.7 percent
Fourth Quarter 2022 Conference Call
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Q4 2022 Global Business Unit Performance
Hygiene, Health, and Consumable Adhesives (HHC)
- Organic revenue up 12% year-on-year and adjusted EBITDA increased 5%
- Most end markets achieved double-digit organic growth
- Consistently strong pricing actions throughout the year
Engineering Adhesives (EA)
- Organic revenue up 9% year-on-year and adjusted EBITDA increased 23%
- Exceptionally strong growth in automotive and insulated glass
- Strong pricing actions, expense management, and higher volume drove EBITDA growth
Construction Adhesives (CA)
- Organic revenue and adjusted EBITDA declined year-over-year
- Customer de-stocking activities, particularly in the roofing market, and more challenging economic conditions impacted top and bottom-line performance
Fourth Quarter 2022 Conference Call
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H.B. Fuller Company published this content on 19 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2023 15:30:03 UTC.