EX-99.2 3 dex992.htm 2011 H.B. FULLER 2011 ANALYST AND INVESTOR DAY PRESENTATION SLIDES 2011 H.B. Fuller 2011 Analyst and Investor Day presentation slides
February 1, 2011
Le Parker Meridien, New York
H.B. Fuller Analyst and
Investor Day
July 14, 2011
Exhibit 99.2

Today’s Agenda
1.
Growth Strategy
2
3.
Europe Transformation
Steve Kenny
Sr. VP, EIMEA
4.
Financial Targets
Jim Giertz
Sr. VP & CFO
Barry Snyder
VP & CTO
Traci Jensen
VP, North America
Adhesives
Kevin Gilligan
VP, Asia Pacific
2.
Innovation and Market Opportunities
Jim Owens
President & CEO

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
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
During
today’s
meeting,
we
will
be
discussing
certain
non-GAAP
financial
measures,
specifically,
operating
income,
earnings
before
interest,
taxes,
and
depreciation
and
amortization
expense
(EBITDA),
and
return
on
invested
capital(ROIC).
Operating
income
is
defined
as
gross
profit
less
SG&A
expense;
EBITDA
is
defined
as
gross
profit
less
SG&A
expense,
plus
depreciation
and
amortization;
adjusted
financials
are
defined
according
to
the
earnings
release
issued;
and
ROIC
is
defined
as
Operating
Income
less
Taxes
Plus
Equity
Earnings
divided
by
Debt
plus
Equity.
Management
believes
that
a
discussion
of
these
measures
is
useful
to
investors
because
it
assists
in
understanding
the
operating
performance
of
the
Company
and
its
operating
segments
and
in
understanding
the
comparability
of
results.
The
non-GAAP
information
discussed
may
not
be
consistent
with
the
methodologies
used
by
other
companies.
All
non-GAAP
information
is
reconciled
with
reported
GAAP
results
on
the
last
pages
of
this
presentation.
Additional Information
For
more
information,
please
refer
to
our
10-Q
filings
of
March
28,
2011,
June
24,
2011,
and
annual
report
for
the
year
ended
November
27,
2010,
on
form
10K,
filed
with
the
Securities
and
Exchange
Commission;
all
of
which
are
available
on
our
website
at
www.hbfuller.com
under
the
“Investor
Relations”
section.
3

Our Transformation Continues
4
•2006 –
2007:
New pricing tools
developed
Cost structure
addressed
Margins improved
•
2008 –
2009:
New talent acquired
Organize for growth
Manage through
recession
Where We Were
2006 -
2009
Where We Are
2010 -
2011
•
2010:
Top line up 10%
EPS + 9%
2011:
Revenue growth of
13-15%
Operating income up
25%
EPS moves from $1.60
to $1.85-$1.95
Controlled investment
continues
Profitability improved
•
Focus Areas:
Revenue and profit
growth
Innovation delivery
Continued investment
for growth
Cash deployment
Metrics Defined;
Organic Growth 5-8%
EBITDA –
14-16%
EPS Growth –
15%
ROIC –
15%
Note:  (1) Income from continuing operations before cumulative effect of accounting change per diluted share.
(2) EBITDA
is
a
non-GAAP
financial
measure
defined
as
gross
profit
less
SG&A
expense
plus
depreciation
expense
plus
amortization
expense.
(3) Return on Invested Capital(ROIC) is defined as gross profit less SG&A expense less (1-tax rate) plus equity earnings divided by Debt plus Equity. Please refer to the
Company’s Form 10-K statements for more detailed information.
Where We Are Going
2012 –
2015

Stock Price Appreciation
Increase revenue from $1.4 billion to $2.0 billion
Improve EBITDA margin from 10.9% to 15%
5
Year
Revenue
EBITDA
Margin
EBITDA $
EBITDA
Multiple
Stock Price
EPS
2010
$1.4
Billion
10.9%
$148 M
7X EBITDA
$18-$24
$1.60 EPS
13X EPS
2015
$2.0
Billion
15 %
$300 M
7 -
9X EBITDA
$44-$52
$3.60 EPS
12-18X EPS
$43-$65

Growth
Organic growth of 5-8% per year
Gain share in targeted market segments
Invest in and leverage market and sales expertise
Expand geographically in Asia/Middle East/Latin America
Commercialize innovative solutions
EBITDA  Margin Improvement
Move from 10.9% to 15% EBITDA margin
Execute EIMEA transformation
Accelerate growth and leverage infrastructure in Asia Pacific and
Latin America
6
Execution of these two priorities doubles EBITDA from
$148 million in 2010 to $300 million in 2015.
Strategic Priorities

$40 Billion global market
80  different  market
segments
H.B. Fuller operates in
22 Segments
Market growth rates vary
from 1% to 9%
Some sub-segments/
applications have much
higher rates of growth
Global Adhesive Market Summary
7

Targeted Growth:
Key Markets –
8
HYGIENE
Baby diapers, Feminine products,
Adult incontinence
PACKAGING
Consumer Packaging, Labeling,
Flexible Packaging, Packaging Integrity
DURABLE ASSEMBLY
Water Filters, Panel Assembly,
Engineered Textiles, Insulating Glass

Attractive Market
Market growth accelerating and above global GDP
Changing product design drives changes in adhesives
Stretch materials
Thinner products
Customized products for low-cost market segments
Limited competition capable of delivering product, innovation and
technical support
H.B. Fuller’s Strength
Global alliances with leading multinationals
Innovator with broadest platform of adhesive
technology
A leader in polyolefin adhesive technology
Regional expertise supporting regional and local
manufacturers
9
Hygiene
Opportunity

10
Hygiene
Capturing the Opportunity
China facility
Further investments planned
“Be where the babies are”
Egypt acquisition
India plant
Product and supply chain innovation
Unparalleled support through recent supply shortages
Formulating flexibility unmatched in industry
Leverage global raw material supply
Win through innovation on “Big Opportunities”
Work with multi-nationals as platforms and products evolve
Align with raw material providers to develop solutions
Support start-ups in emerging economies
Help customers drive speed and output of their
production lines

11
Attractive Market
Market growth above global GDP as consumers move to packaged goods
Changing market demands drive changes in adhesives
Sustainable packages
Reduced packaging
Attractive package design
Move toward global, technically superior solutions
H.B. Fuller’s Strength
End-of-line packaging
Technology leader, superior service provider, unparalleled global/local coordination
Adalis reinforcement products offer improved performance with less material
Reduced packaging amount (sustainability) and cost
Market penetration opportunities in labeling and flexible packaging
H.B. Fuller has technology and Infrastructure
Packaging
Opportunity

Specialized solution through innovation
Liquamelt
®
adhesive system
Advantra Encore™
adhesive
Flextra Quiet™
adhesive
EZ open tape
Global leverage
Global account management
Innovation launches
OEM relationships
Raw material supply
Supply chain
Service model with local expertise
Delivering productivity improvements on our
customers’
packaging lines
12
Packaging
Capturing the Opportunity

Attractive Market
Requires high performing, highly specified adhesives
Changing product design drives changes in adhesives
Lighter weight, more complex composite materials
Sustainability trends
Environmental trends
Strong R&D combined with technical know-how and segment expertise
H.B. Fuller’s Strength
World leader in reactive hot melt technology
Offers strong adhesive performance at high
production speeds
Market segment expertise
Water filters, insulated glass, structural panels,
door/floor productivity
Broad palette of technological solutions
13
Durable Goods Assembly
Opportunity

14
Leverage reactive hot melt technology capability
Strong patent portfolio
Only manufacturer producing on three continents
Formulating expertise
Identify market trends and specify new innovations
Water filter advances
North America residential glazing
New regulations leading to changes in window design
Panel/Door trends
Higher throughput on automated lines
Reduced use of solvented adhesives
Select projects in high growth markets
Electronics
Solar
Durable Goods Assembly 
Capturing the Opportunity

15
2010
Revenue
Target
2015
Revenue
HBF
CAGR
2010
Market
Size
Value Proposition
Hygiene
$250
$420
10-12%
$1,100
Partner with growing
market leaders to
enable innovation
Packaging
$290
$490
10-12%
$2,500
Local service through
global infrastructure
Durable
Assembly
$300
$500
10-12%
$2,000
Specified adhesives
for high performing
applications
Construction
Materials and
Other Adhesives
$516
$590
2-3%
$1,356
$2,000
8%
H.B. Fuller’s Growth Plan
•
$40 Billion Market
•
Targeted focus on attractive
market segments that leverage
H.B. Fuller’s strengths
*All amounts in $ millions, except percentages
(1) HBF targeted market, excluding Japan
1

16
2010
EBITDA%
2015
EBITDA%
2010
EBITDA
2015
EBITDA
Margin Improvement Actions
North America
17%
17%
$95
$128
Maintain strong margin in
North America Adhesives
Europe, India,
Middle East, Africa
7%
14%
$28
$92
Detailed  transformation
initiative
Asia Pacific
6%
14%
$9
$42
Grow into cost structure
Latin America
7%
12%
$16
$38
Improve GM% in LA
Adhesives and manage cost
structure in Central America
Paints
H.B. Fuller
1
10.9%
15%
$148
$300
EBITDA Margin Improvement
*All amounts in $ millions, except percentages
(1) 2010 results adjusted for PS exit

17
EBITDA Margin Improvement
2010
EBITDA%
2015
EBITDA%
2010
EBITDA
2015
EBITDA
Margin Improvement Actions
North America
17%
17%
$95
$128
Maintain strong margin in
North America Adhesives
Europe, India,
Middle East, Africa
7%
14%
$28
$92
Detailed  transformation
initiative
Asia Pacific
6%
14%
$9
$42
Grow into cost structure
Latin America
7%
12%
$16
$38
Improve GM% in LA
Adhesives and manage cost
structure in Central America
Paints
H.B. Fuller
1
10.9%
15%
$148
$300
*All amounts in $ millions, except percentages
(1) 2010 results adjusted for PS exit
North America
Strong brands
Strong products
Strong team

18
EBITDA Margin Improvement
2010
EBITDA%
2015
EBITDA%
2010
EBITDA
2015
EBITDA
Margin Improvement Actions
North America
17%
17%
$95
$128
Maintain strong margin in
North America Adhesives
Europe, India,
Middle East, Africa
7%
14%
$28
$92
Detailed  transformation
initiative
Asia Pacific
6%
14%
$9
$42
Grow into cost structure
Latin America
7%
12%
$16
$38
Improve GM% in LA
Adhesives and manage cost
structure in Central America
Paints
H.B. Fuller
1
10.9%
15%
$148
$300
*All amounts in $ millions, except percentages
(1) 2010 results adjusted for PS exit
EIMEA
Multi-year multi-step profit improvement initiative
Drive complexity from the business
Capital expenditures and other investments for
productivity
Extend growth momentum

19
EBITDA Margin Improvement
2010
EBITDA%
2015
EBITDA%
2010
EBITDA
2015
EBITDA
Margin Improvement Actions
North America
17%
17%
$95
$128
Maintain strong margin in
North America Adhesives
Europe, India,
Middle East, Africa
7%
14%
$28
$92
Detailed  transformation
initiative
Asia Pacific
6%
14%
$9
$42
Grow into cost structure
Latin America
7%
12%
$16
$38
Improve GM% in LA
Adhesives and manage cost
structure in Central America
Paints
H.B. Fuller
1
10.9%
15%
$148
$300
*All amounts in $ millions, except percentages
(1) 2010 results adjusted for PS exit
Asia Pacific
Leverage investments in technical center, ex-pats,
Malaysia acquisition and Nanjing plant
Grow into cost structure
Reduce SG&A by 500 basis points
Continued investment in local customer facing resources

20
EBITDA Margin Improvement
2010
EBITDA%
2015
EBITDA%
2010
EBITDA
2015
EBITDA
Margin Improvement Actions
North America
17%
17%
$95
$128
Maintain strong margin in
North America Adhesives
Europe, India,
Middle East, Africa
7%
14%
$28
$92
Detailed  transformation
initiative
Asia Pacific
6%
14%
$9
$42
Grow into cost structure
Latin America
7%
12%
$16
$38
Improve GM% in LA
Adhesives and manage cost
structure in Central America
Paints
H.B. Fuller
1
10.9%
15%
$148
$300
*All amounts in $ millions, except percentages
(1) 2010 results adjusted for PS exit
Latin America
Improve gross margin in Latin America Adhesives by
300 basis points
Reduce operating expenses in Central America Paints
by 300 basis points
Grow in Brazil and Mexico

21
2010
EBITDA%
2015
EBITDA%
2010
EBITDA
2015
EBITDA
Margin Improvement Actions
North America
17%
17%
$95
$128
Maintain strong margin in
North America Adhesives
Europe, India,
Middle East, Africa
7%
14%
$28
$92
Detailed  transformation
initiative
Asia Pacific
6%
14%
$9
$42
Grow into cost structure
Latin America
7%
12%
$16
$38
Improve GM% in LA
Adhesives and manage cost
structure in Central America
Paints
H.B. Fuller
1
10.9%
15%
$148
$300
EBITDA Margin Improvement
*All amounts in $ millions, except percentages
(1) 2010 results adjusted for PS exit

Growth
Organic growth of 5-8% per year
Gain share in targeted market segments
Invest in and leverage market and sales expertise
Expand geographically in Asia/Middle East/Latin America
Commercialize innovative solutions
EBITDA  Margin Improvement
Move from 10.9% to 15% EBITDA margin
Execute EIMEA transformation
Accelerate growth and leverage infrastructure in Asia Pacific and
Latin America
22
Execution of these two priorities doubles EBITDA from
$148 million in 2010 to $300 million in 2015.
Strategic Priorities

Strong, Experienced Leadership
23

What’s Different?
Opportunity clearly identified
Solid plan developed
Execution capability
24

February 1, 2011
QUESTIONS AND
DISCUSSION
July 14, 2011

Innovation
at H.B. Fuller
July 14, 2011

Barry Snyder
Vice President and
Chief Technology
Officer
Traci Jensen
Vice President,
North America
Adhesives
2
Kevin Gilligan
Vice President,
Asia Pacific

Innovation at H.B. Fuller
Innovation at H.B. Fuller is about leveraging our
expertise and market knowledge to commercialize
value-added adhesives solutions for our customers.
3

Targeted Growth:
Key Markets –
4
HYGIENE
Baby diapers, Feminine products,
Adult incontinence
PACKAGING
Consumer Packaging, Labeling,
Flexible Packaging, Packaging Integrity
DURABLE ASSEMBLY
Water Filters, Panel Assembly,
Engineered Textiles, Insulating Glass

5
PACKAGING
Consumer Packaging, Labeling,
Flexible Packaging, Packaging Integrity
DURABLE ASSEMBLY
Water Filters, Panel Assembly,
Engineered Textiles, Insulating Glass

6
PACKAGING
Consumer Packaging, Labeling,
Flexible Packaging, Packaging Integrity
DURABLE ASSEMBLY
Water Filters, Panel Assembly,
Engineered Textiles, Insulating Glass

Hot Melt Adhesive Innovation
7
Simplicity
Reduce adhesive complexity
Security
Bond under wide range of conditions
Savings
Reduce adhesive consumption and
inventory

Advantra Encore
Adhesive
Simplicity
Two years in the making
Breakthrough polymer technology
Reduced reliance on scarce raw
materials
8
Security
Savings
TM

9
HYGIENE
Baby diapers, Feminine products,
Adult incontinence
PACKAGING
Consumer Packaging, Labeling,
Flexible Packaging, Packaging Integrity
Engineered Textiles, Insulated Glass

10
Cool on Delivery –
Hot on Demand
Lower Production costs
Addresses Sustainability

Solving Customers’
Problems
11
Clean vs. Charred Nozzle
(not Liquamelt®
equipment)
Charred Hose

12
Cool on Delivery –
Hot on Demand
Lower Production costs
Addresses Sustainability

Customer-focused Innovation
“Liquamelt
®
has great potential for
becoming the next step-change in
improving  performance and optimizing
cost above and beyond the performance
of  the current packaging adhesives and
existing dispensing equipment.”
13

14
PACKAGING
Consumer Packaging, Labeling,
Flexible Packaging, Packaging Integrity
DURABLE ASSEMBLY
Water Filters, Panel Assembly,
Engineered Textiles, Insulated Glass

The first compostable flexible
package
Drive for environmentally
friendly packaging
Materials usage reduction
Sustainable materials
Industry Changes Demand Innovation
15
•
2009 :  Sun Chips package
introduced
•
Noisy package challenge
•
Many attempts to reduce noise
Polylactic acid films introduced
2003
Plant derived

Adhesives Do More Than Bond
Flextra Quiet
•
The Adhesive Shock Absorber
•
Bonds and
reduces noise
•
Commercialized February 2011
16
TM
Film
Film
Adhesive

17
DURABLE ASSEMBLY
Water Filters, Panel Assembly,
Engineered Textiles, Insulating Glass

Insulating Glass (IG) –
What is It?
What Is IG?
An insulating panel that provides
a vision space
Used in windows, doors, and
skylights
Elements
1.
Float Glass
2.
Desiccant
3.
Perimeter Seal
4.
Barrier Seal
5.
Spacer
18

Insulating Glass
19
Energy conservation leading to greater use of insulating glass
Developing world in particular accessing trend
China’s latest 5 year plan
Stronger regulation in developed world supporting differing
approaches to insulating glass assembly
In US, DOE upgraded Energy Star rating
in 2010
In Europe, EU 20-20-20 plan –
energy reduction of 20 percent by 2020

Insulating Glass –
H.B. Fuller Solutions
H.B. Fuller is recognized for enabling more productive and higher
thermally efficient IG production
Examples of solutions provided by HBF
Reactive hot melt sealant –
Breakthrough performance capability compared
to traditional sealants
Intercept technology –
Sealant and desiccating matrix system enabled
leading process to make residential IG in NA, increased productivity by
100%, warm edge solution
Super Spacer –
Supported most thermally efficient means of constructing IG
Recent development –
Collaboration with industry partners to develop
a new, structurally sound, lower cost, warm edge spacer system
20
When
solutions
are
required,
industry
partners
come
to
H.B.
Fuller

21
DURABLE ASSEMBLY
Water Filters, Panel Assembly,
Engineered Textiles, Insulating Glass

Markets
Desalinization/ Municipality
Industrial/ Energy
Residential
Medical
Liquid Separation Market Overview
22

Water Filter Adhesive Application
Filter bundle (capillaries)
Filter housing
Potting adhesive location

Customer Issues
Productivity
Faster processing
Flexibility for use with multiple
filters and process lines
Performance
Higher heat and chemical
resistance
Adhesion to new membrane
media
24

Liquid Separation Illustration
Situation
Large desalination filter manufacturer in Asia
Looking to increase capacity and improve quality
H.B. Fuller solution
Productivity –
Cycle time improvement increasing capacity by 25%
Industry credibility –
NSF certification
Speed
Collaboration –
Asia Pacific application engineers working closely with
chemists in Shanghai and Saint Paul
25

26
HYGIENE
Baby diapers, Feminine products,
Adult incontinence

Hygiene Market Overview
449 billion units in 2010
Baby Diapers
Feminine Care
Adult Incontinence
Baby Diaper Usage
Developed economies
56 billion diapers per year
Developing economies
Current 65 billion diapers
Potential 535 billion
27

Diaper Usage Worldwide
28
2,000 diapers per year in
developed economies
Babies outside developed
economies use less than
one diaper per day

1
2
3
4
6
7
8
9
10
Deconstruction of a Diaper
Core
(incl. SAP)
“Cotton
Ball”
Fluff pulp
material
Outside
film
“Beads”
are
suspended
within
material
10 adhesive applications per diaper
Core stabilization drives thinner finished product
Core
stabilization
adhesive

Thin Leads to Sustainability
Reduction of Carbon Footprint
30

Targeted Growth:
Key Markets –
31
PACKAGING
Consumer Packaging, Labeling,
Flexible Packaging, Packaging Integrity
HYGIENE
Baby diapers, Feminine products,
Adult incontinence
DURABLE ASSEMBLY
Water Filters, Panel Assembly,
Engineered Textiles, Insulating Glass

February 1, 2011
QUESTIONS AND
DISCUSSION
July 14, 2011

February 1, 2011
Europe, India,
Middle East and Africa
July 14, 2011

EIMEA
2
Steve Kenny
Senior Vice President, EIMEA

We have a problem in EIMEA . . . .
Our foundation is strong
We participate in the right market segments
We don’t have “non core”
businesses
We are a pure play in industrial adhesives, aligned with corporate strategy
But . . . .We have some portfolio gaps
Strong in north Europe, weaker in the south
Catching up in emerging markets
Need to accelerate growth in core packaging segment
But our biggest gap is profitability
We are underperforming relative to internal and external benchmarks
3

We’ve already taken some actions
Changes since 2008 include:
Re-focused our strategy toward value and innovation
New leadership team
New organization structure with market focus
Strengthened the commercial team
Organic growth momentum re-established
Exited non-strategic business lines
Invested in emerging markets
But we have much more to do . . . . .
4

Delivering our transformation
Goals:
Achieve minimum Corporate profitability target of 14% EBITDA margin
Create sustainable and scalable platform
Strengthen
emerging
market
position
and
accelerate
growth
in
key
market
segments
Approach:  Over the next 2 ½
years, undertake comprehensive
overhaul of every core process in the region to achieve scale and
efficiency
Everything is on the table:
Procurement (What we buy)
Product lineup (What we make)
Production network (Where and how we make it)
Commercial strategy (Who we sell to and how we sell)
5

First, a little more background
on our business
Look at our business relative to our more successful sister organization in
North America
Some common characteristics:
Pursue the same strategy of selling value solutions to customers
Identical focus on strategic market segments of hygiene, packaging and
durable assembly
Sell the same products
Primary differences include:
Long term growth potential of EIMEA higher due to emerging markets
EIMEA region more diverse and complex
Profit !!
6

0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2003
2004
2005
2006
2007
2008
2009
2010
2011 OL
EIMEA EBITDA %
NAA EBITDA %
EBITDA margin progression
7
Price increases and
strict cost control
Recession and lack of action
on costs / Weaker pricing
relative to NAA
Raw material spikes and
SG&A investment

In short . . . .
We
do
all
the
same
things
as
North
America
adhesives
business
at
a
slightly higher cost and with a suboptimal result
Costs more to buy,
Costs more to make,
Costs more to distribute,
Costs more to sell,
Costs more to administer.
Common
theme
in
EIMEA
business
structure
is
complexity
Complexity interfered with our ability to respond to raw material
inflation spikes and global recession
Complexity hindered quick implementation of new strategy
8

So, the FIX
. . . . .
Avoid superficial improvements in favor of sustainable and
scalable change
Our approach will have three key areas of focus :
9
How and what we buy
How we make and deliver product
How we go to market

How and what we buy
Primary focus today is on raw materials and packaging
Excessive complexity hindering purchasing leverage
30% of materials purchased deliver >80% of our profitability
Streamline for leverage…..clean up our formulations & SKUs
Develop larger scale platform products
Alternate solutions for our small item tail
10
-20%
-40%

How we make and deliver product
Less than 20% of the formulations account for over 90% of our
margin
Excessive complexity
Reduced labor and capital efficiency due to frequent changeovers
Sub-optimal process cycles
Poor service levels
Higher freight and logistics costs
11

How we go to market
Primary sales channel is direct
80% of margin generated by less than 20% of customers
“Standard”
offer  is effectively full service
Differentially deploy  where value is reflected in pricing
Opportunities to enhance service experienced by customers
leveraging alternate channels
Distributor partners
Tele-servicing
12

Our financial commitments
13
*  All amounts in € millions, except percentages
(1)  Adjusted for PS exit
(2)  2011 outlook as base year
Actual
1
Estimate
Target
2010
2011
2014
CAGR
2
Net Revenue
301
350
425
7%
EBIT
12
23
48
28%
Depreciation & Amortization
7
7
11
EBITDA
19
30
59
25%
EBIT Margin
4%
7%
11%
EBITDA Margin
6%
9%
14%

EBITDA bridge to 2014
14
2010 EBITDA is adjusted for PS exit
19
59
8
11
10
11
-
10
20
30
40
50
60
70

Investments to achieve goals
Cash investment over next 2 ½
years of about €50 million
Capital expenditures and other investments to increase
productivity
Project staffing and support costs
All process work complete by end of 2013
Fiscal
year
2014
should
be
“clean”
–
new
organization
and
cost structure in place and generating profitable growth at
target levels
15

Impact of proposed changes
Impact of successful implementation of this transformation proposal is
significant
Cash investment of approximately €50 million returns incremental pre-tax
cash flow of €30 million
Profit improvement in EIMEA region is primary initiative to increase
corporate consolidated profit profile
Even at relatively conservative EBITDA multiples, transformation
proposal could generate more than $200 million of incremental market
capitalization for HB Fuller
Other positive factors:
Plan is funded with excess foreign cash that is currently idle
Incremental profit in Europe has relatively low tax rate
16

Just a few words about growth . . .
We have a couple of significant growth opportunities
Accelerating our business in the important emerging markets: The
Middle East , Turkey and India
Capturing our fair share of the packaging market opportunity across
the entire region
17

Emerging market opportunity
Growth and demographics of emerging markets drive opportunity
The babies are in the emerging markets
Income growth drives sales of consumer goods such as diapers and
beverages
We are well positioned in Middle East and North Africa with our facility
and organization in Egypt
We have a strong position in Turkey
Recently strengthened with integration of commercial team and enhanced
logistics support network
Greenfield production facility in India ready by end of fiscal year
18

Packaging opportunity
We are relatively under-represented in our core market segment of
packaging
Specific opportunities for EIMEA region include:
Leverage the market  trend toward flexible packaging
Use proprietary technology to solve problems for bottle labeling
Leverage global expertise and experience in all packaging segments
19

Next steps . . . .
We have built preliminary, detailed proposals for the various process
improvement initiatives of the transformation
Need to consult with all key constituencies in the region
Several key project initiatives can be pursued now with immediate
positive impact
We will report each quarter on our progress toward our commitments
until our work is complete
20

Summary and Recap
Transformation agenda is comprehensive
Will touch all core processes –
How and what we buy, how we make and
deliver product, how we go to market
Focus on sustainable and scalable platform for the future
Requires significant investment of cash and human resources but the
benefit to the region and global organization is significant
Commitment to 14% EBITDA margin for 2014 fiscal year
At the same time, will continue growth momentum in key market segments
and strategic geographies
We will report on our progress every quarter as we complete our work
21

QUESTIONS
AND DISCUSSION

February 1, 2011
Finance Review
July 14, 2011

Finance Review
2
Senior Vice President and
Chief Financial Officer
Jim Giertz

Revised Financial Targets
3
Old 
Targets
New* 
Targets
ROIC
*Base year is 2010

Our Target Income Statement for 2015
2010
2015
CAGR
Net Revenue
1,356
2,000
8%
EBIT
106.9
245
18%
Margin %
8%
12%
EBITDA
148.1
300
15%
Margin %
11%
15%
EPS
$1.60
$3.60
18%
4

Revenue Growth
5-8% per annum
5

Revenue Bridge
6
1,356
2,000
2,051
195
135
155
160
50
100
1,000
1,200
1,400
1,600
1,800
2,000
2,200

0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
EBITDA %
2011 Range
EBITDA Progression
EBITDA Margin History and Targets
15% by 2015
7
15%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
EBITDA %
2011 Range
EBITDA Progression

EBITDA Margin Bridge
8
10.9%
15.0%
240 bps
50 bps
120 bps
0 bps
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%

EBITDA Progression
15% CAGR to 2015
9
218
300
-
50
100
150
200
250
300
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
EBITDA
2011 EBITDA Guidance Range
EBITDA Growth
EBITDA Margin Expansion

ROIC: New Metric Introduced
10

14.0%
5.0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
ROIC
ROIC Estimate
Cash Deployment
ROIC History and Target
11

ROIC Improvement Bridge
12
9.6%
14.0%
3.3%
0.5%
0.4%
0.2%
5.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%

Cash Deployment
CapEx –
2.5% of net revenue plus
$70M for the EIMEA
transformation
Share Repurchase –
Base program to offset
dilution from equity
compensation
Dividends –
20-25% of net income
13
*During the 2009 Fiscal year, HBF contributed $135M to pension plans, primarily in the United States

Dividend Target
20% to 25% of Net Income
14
29.5
0.1
1
10
100
Annual Dividends (cents per share)

M&A Strategy
Strong position to evaluate opportunities
Confidence in existing business
Avoid “target reaching”
deals
Enhance sound organic growth strategy
Past strategic actions
Geographic
Egymelt (Egypt)
Revertex Finewaters (Malaysia)
Organic
China (Reactive hot melt facility)
India (Construction underway)
Technology
Nordic
15
Revertex Finewaters, Malaysia
Reactive Facility, Nanjing China
Liquamelt Adhesive System

Current 2011 Guidance
16
Additional Pricing
Additional Pricing

FY 2011 Guidance
17
*All amounts in $ millions, except per share data
1H 2011
Net Revenue
733
      
799
      
826
      
1,532
   
1,560
   
EBIT
56
        
77
        
85
        
134
      
141
      
EBITDA
76
        
97
        
105
      
174
      
181
      
EPS
0.78
$   
1.07
$   
1.17
$   
1.85
$   
1.95
$   
2H 2011 Range
FY 2011 Range

HB Fuller Historical Perspective
18
600
800
1,000
1,200
1,400
1,600
1,800
2,000
50
100
150
200
250
300
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
EBITDA
Net Revenue

Step Change
Solid Foundation in Place
Plans to Execute
Fundamentally different HB Fuller
Long-Term Commitments
19

QUESTIONS
AND
DISCUSSION

Regulation G -
ROIC
21
ROIC Calculation
$ Millions except percentages
2003
2004
2005
2006
2007
2008
2009
2010
Net Revenue
1,287,331
1,409,606
1,512,193
1,472,391
1,400,258
1,391,554
1,234,659
1,356,161
Less: Cost of Goods Sold
935,135
1,036,961
1,113,142
1,052,508
981,555
1,027,099
863,358
957,149
Gross Profit
352,196
372,645
399,051
419,883
418,703
364,455
371,301
399,012
Less: SG&A Expense
284,242
304,444
311,711
304,458
275,893
254,898
264,141
292,084
Operating Income
67,954
68,201
87,340
115,425
142,810
109,557
107,160
106,928
Operating Income
67,954
68,201
87,340
115,425
142,810
109,557
107,160
106,928
Effective Tax Rate
28.2%
30.5%
30.3%
23.7%
27.5%
28.1%
32.0%
28.9%
Less: Income taxes on Operating Income at Effective Rate
19,135
20,776
26,488
27,326
39,344
30,786
34,338
30,849
Net Operating Profit After Tax
48,819
47,425
60,852
88,099
103,466
78,771
72,822
76,079
Plus: Income from Equity Method Investments
2,105
1,819
3,265
5,989
1,923
2,829
5,794
8,008
Total Return
50,924
49,244
64,117
94,088
105,389
81,600
78,616
84,087
Long Term Debt
161,047
138,149
112,001
224,000
137,000
204,000
162,713
200,978
Plus: Notes Payable and current Installments of Long-Term Debt
12,876
36,235
34,837
34,746
35,608
36,134
51,315
49,743
Plus: Total Stockholder's Equity
509,338
553,059
584,443
777,792
798,993
535,611
591,354
631,934
Total Invested Capital
683,261
727,443
731,281
1,036,538
971,601
775,745
805,382
882,655
Total Return
50,924
49,244
64,117
94,088
105,389
81,600
78,616
84,087
Divided by: Total Invested Capital
683,261
727,443
731,281
1,036,538
971,601
775,745
805,382
882,655
Return on Invested Capital (ROIC)
7.5%
6.8%
8.8%
9.1%
10.8%
10.5%
9.8%
9.5%

Regulation G -
EBITDA
22
$ Thousands
2003
2004
2005
2006
2007
2008
2009
2010
Net Revenue:
1,287,331
1,409,606
  
1,512,193
  
1,472,391
  
1,400,258
1,391,554
  
1,234,659
1,356,161
Cost of Goods Sold:
(935,135)
  
(1,036,961)
(1,113,142)
(1,052,508)
(981,555)
  
(1,027,099)
(863,358)
  
(957,149)
  
Selling, General, and Administrative Expenses:
(284,242)
  
(304,444)
    
(311,711)
    
(304,458)
    
(275,893)
  
(254,898)
    
(264,141)
  
(292,084)
  
Operating Income :
67,954
      
68,201
       
87,340
       
115,425
     
142,810
    
109,557
     
107,160
    
106,928
    
Depreciation Expense:
51,697
      
53,437
       
52,712
       
39,460
       
36,349
      
34,369
       
34,710
      
30,360
      
Amortization Expense:
2,439
        
2,593
          
2,763
          
8,995
          
14,009
      
11,803
       
12,038
      
10,839
      
EBITDA:
122,090
    
124,231
     
142,815
     
163,880
     
193,168
    
155,729
     
153,908
    
148,127
    
EBITDA Margin
9.5%
8.8%
9.4%
11.1%
13.8%
11.2%
12.5%
10.9%

Regulation G –
Region EBITDA
23
REGION EBITDA:
$ Thousands
2010
Operating Income:
North America
73,050
EIMEA
16,544
Latin America
11,339
Asia Pacific
5,996
Total H.B. Fuller
106,929
Depreciation Expense:
North America
13,754
EIMEA
9,500
Latin America
4,288
Asia Pacific
2,820
Total H.B. Fuller
30,362
Amortization Expense:
North America
8,378
EIMEA
1,625
Latin America
203
Asia Pacific
633
Total H.B. Fuller
10,839
EBITDA:
North America
95,182
EIMEA
27,669
Latin America
15,830
Asia Pacific
9,449
Total H.B. Fuller
148,130

Regulation G –
Region EBITDA %
24
REGION EBITDA:
$ Thousands
2010
Net Revenue:
North America
     567,223
EIMEA
     404,750
Latin America
     229,319
Asia Pacific
     154,868
Total H.B. Fuller
1,356,161
EBITDA:
North America
       95,182
EIMEA
       27,669
Latin America
       15,830
Asia Pacific
         9,449
Total H.B. Fuller
     148,130
EBITDA Margin:
North America
16.8%
EIMEA
6.8%
Latin America
6.9%
Asia Pacific
6.1%
Total H.B. Fuller
10.9%

25
Regulation G–Pro Forma 2010 P&L
52 Weeks
2nd Quarter
Adjusted 52 Weeks
Ended
Product Line Exit
Ended
November 27, 2010
Adjustments
November 27, 2010
Net revenue
1,356,161
$                 
-
$                          
1,356,161
$                 
Cost of sales
(958,980)
(1,831)
(957,149)
Gross profit
397,181
(1,831)
399,012
Selling, general and administrative expenses
(292,836)
(752)
(292,084)
Asset impairment charges
(8,785)
(8,785)
-
Other income (expense), net
2,572
-
2,572
Interest expense
(10,414)
-
(10,414)
Income before income taxes and income from equity
investments
87,718
(11,368)
99,086
Income taxes
(25,307)
2,928
(28,235)
Income from equity investments
8,008
-
8,008
Net income including non-controlling interests
70,419
$                     
(8,440)
$                      
78,859
$                     
Net (income) loss attributable to non-controlling
interests
458
-
458
Net income attributable to H.B. Fuller
70,877
$                     
(8,440)
$                      
79,317
$                     
Basic income per common share attributable to H.B. Fuller
1.46
$                         
(0.17)
$                        
1.63
$                         
Diluted income per common share attributable to H.B. Fuller
1.43
$                         
(0.17)
$                        
1.60
$                         
Weighted-average H.B. Fuller common shares
outstanding:
Basic
48,599
48,599
48,599
Diluted
49,608
49,608
49,608

Regulation G –
Selected Segment EBITDA
26
SEGMENT EBITDA:
2003
2004
2005
2006
2007
2008
2009
2010
Net Revenue:
North America Adhesives
473,888
      
       491,382
535,474
       
509,283
       
469,797
       
451,647
       
416,678
       
445,029
       
EIMEA
219,521
      
       240,416
272,221
       
295,671
       
311,359
       
290,837
       
265,206
       
301,096
       
Operating Income:
North America Adhesives
60,673
        
         57,717
68,542
         
74,683
         
64,368
         
55,963
         
69,200
         
70,391
         
EIMEA
6,608
           
            6,634
16,279
         
25,268
         
34,296
         
24,705
         
16,464
         
12,127
         
Depreciation and Amortization Expense:
North America Adhesives
13,373
        
         12,897
12,974
         
12,717
         
15,400
         
14,000
         
15,581
         
10,823
         
EIMEA
8,235
           
            9,168
9,231
           
7,967
           
7,421
           
7,145
           
7,656
           
7,299
           
EBITDA:
North America Adhesives
74,046
        
70,614
        
81,516
         
87,400
         
79,768
         
69,963
         
84,781
         
81,214
         
EIMEA
14,843
        
15,802
        
25,511
         
33,235
         
41,718
         
31,850
         
24,120
         
19,426
         
EBITDA Margin:
North America Adhesives
15.6%
14.4%
15.2%
17.2%
17.0%
15.5%
20.3%
18.2%
EIMEA
6.8%
6.6%
9.4%
11.2%
13.4%
11.0%
9.1%
6.5%
* All amounts regarding NAA are in $ thousands, except percentages and all amounts regarding EIMEA are in € thousands, except percentages.