Worldwide Headquarters 1200 Willow Lake Boulevard St. Paul, Minnesota 55110-5101	Exhibit 99.1   Barbara Doyle  Investor Relations contact  651-236-5023
NEWS	January 16, 2019

H.B. Fuller Reports Fourth Quarter and Fiscal Year 2018 Results

Fourth Quarter Organic Revenue Growth of 4 percent⁷;

Fourth Quarter Reported Diluted EPS of $0.79;

Adjusted Diluted EPS of $0.90² increased 27 percent versus Q4’17;

Debt pay down of $204 million in 2018 exceeded target;

Fiscal Year 2019 Adjusted Diluted EPS Guidance is $3.15 to $3.45

ST. PAUL, Minn. – H.B. Fuller Company (NYSE: FUL) today reported financial results for the fourth quarter and fiscal year ended Dec. 1, 2018.

Items of Note for Fourth Quarter 2018:

■ Cash flow from operations of $146 million up versus $70 million in the fourth quarter of 2017; debt pay down of $204 million in fiscal 2018, exceeding the company’s target of $170 million;

■ Net revenue of $768 million, up 13 percent versus fourth quarter of 2017. Organic revenue up 4 percent⁷, driven by pricing and double-digit growth in Engineering Adhesives;

■ Net income of $41 million or $0.79 of earnings per diluted share (EPS), compared with a net loss in the fourth quarter of 2017; adjusted net income of $47 million², or $0.90² adjusted EPS, up 27 percent;

■ Gross margin up 240 basis points and adjusted gross margin⁵ up 150 basis points versus fourth quarter of 2017;

■ Adjusted EBITDA of $121 million² up 30 percent year-over-year, driven by acquisitions, strategic pricing gains and acquisition synergies; up 8 percent on a pro-forma basis for Royal¹;

■ Adjusted EBITDA margin of 15.7 percent² increased compared with fourth quarter 2017 margin of 13.7 percent², and 14.2 percent, on a pro-forma basis including Royal¹;

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■ Integration of Royal Adhesives on target with $5 million of incremental cost synergies in the fourth quarter and $15 million of cost synergies in fiscal 2018.

Items of Note for 2019 Guidance:

■ Assumes challenging macroeconomic conditions continue in China and around the globe, the U.S. dollar remains strong and raw materials prices will be generally flat to 2018;

■ Organic revenue growth of 3 to 5 percent, or net revenue growth of 1 to 2 percent reflecting unfavorable foreign currency impact estimated to be 2 to 3 percent;

■ Adjusted diluted EPS of $3.15 to $3.45; up approximately 10 percent at the midpoint;

■ Adjusted EBITDA of $465 to $485 million; up approximately 6 percent at the midpoint;

■ Core tax rate of between 26 and 29 percent;

■ Approximately $100 million of capital expenditures;

■ Debt repayment of $200 million, on-track to the company’s deleveraging targets.

Fourth Quarter 2018 Key Financials:

($ in Millions)	Reported						Adjusted/Proforma
	2018		2017		% Change		2018		2017		% Change
Net Revenue		768		678	+13%			768		7711		-0.3%
Gross Profit Margin		27.3%		24.9%	+240bps			28.1%5		26.6%5	+150bps
Net Income		41		(7)		N/A		472		372	+27%
Diluted EPS		$0.79		($0.13)		N/A		$0.902		$0.712	+27%

Summary of Fourth Quarter 2018 Results:

Net revenue for the fourth quarter of 2018 of $768 million increased 13 percent compared with the fourth quarter of 2017. Organic revenue grew 3.8 percent⁷, driven by pricing improvements and double-digit growth in Engineering Adhesives.

Gross profit margin was 27.3 percent, compared with 24.9 percent in the same period in 2017 and adjusted gross profit margin of 28.1 percent⁵ increased 150 basis points versus last year, driven by strategic pricing gains, raw material sourcing synergies and lower manufacturing costs. Selling, General and Administrative (SG&A) expense was $140 million compared with $151 million last year. Adjusted SG&A expense of $131 million⁶ increased compared with $117 million in the fourth quarter of 2017, primarily due to the impact of acquisitions. Adjusted SG&A expense declined by $2 million, on a pro-forma basis for Royal¹.

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Net income for the fourth quarter of 2018 was $41 million, or $0.79 per diluted share, compared with a net loss of $7 million, or ($0.13) per share in the same period last year, and adjusted net income of $47 million², or $0.90² adjusted EPS, increased 27 percent compared with $37 million², or $0.71² adjusted EPS, versus last year. Adjusted EBITDA was $121 million², up 30 percent compared with the prior year, with increases in all five operating segments. Adjusted EBITDA was up 8 percent on a proforma basis including Royal⁸.

“Our strategy to gain share in Engineering Adhesives, manage margins through effective pricing and leverage acquisition synergies continues to drive success at H.B. Fuller,” said Jim Owens, president and chief executive officer. “We achieved solid organic revenue growth in the quarter driven by pricing gains and double-digit growth in Engineering Adhesives. Foreign currency exchange rates and slower growth in China impacted our results more than we anticipated in our financial guidance for the fourth quarter. Despite these challenging macroeconomic factors, we increased adjusted EBITDA by 8 percent, doubled cash flow from operations compared with the fourth quarter of last year and paid down $204 million of debt in 2018, exceeding our $170 million target.”

Full Year 2018 Summary:
Net revenue for the 2018 fiscal year of $3,041 million increased 32 percent compared with fiscal 2017. Organic revenue grew by 3.7⁷ percent year-over-year, driven by pricing gains and double-digit growth in Engineering Adhesives.

Gross profit margin of 27.5 percent increased 130 basis points compared with fiscal 2017 and adjusted gross profit margin of 27.9 percent⁵ increased 60 basis points versus last year. Net income for fiscal 2018 was $171 million, or $3.29 per diluted share, compared with net income of $59 million, or $1.15 per diluted share in fiscal 2017, and adjusted net income of $156 million², or $3.00² per diluted share, increased 23 percent compared with $127² million, or $2.45² per diluted share, in fiscal 2017. Adjusted EBITDA of $449 million² was up 50 percent compared with the prior year, and increased 7 percent on a proforma basis including Royal⁸.

Balance Sheet and Cash Flow:

At the end of the fourth quarter of 2018, the Company had cash on hand of $151 million and total debt equal to $2,248 million, of which approximately 70 percent had a fixed interest rate. This compares to cash and debt levels equal to $150 million and $2,364 million, respectively, in the third quarter of 2018. Cash flow from operations in the fourth quarter was $146 million compared to $70 million for the same period in 2017, reflecting the increased profitability of the business and improved working capital management. Capital expenditures were $22 million in the fourth quarter of 2018, compared with $19 million in the same period last year.

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Financial Guidance:

For fiscal year 2019, the company anticipates adjusted EPS of $3.15 to $3.45 and adjusted EBITDA of $465 to $485 million. Full year organic revenue growth is expected to be 3 to 5 percent compared with 2018, with net revenue growth of approximately 1 to 2 percent including an estimated unfavorable impact from foreign currency exchange rates of 2 to 3 percent. The company’s core tax rate, excluding the impact of discrete items, is expected to be between 26 and 29 percent. H.B. Fuller expects to invest approximately $100 million in capital items in 2019.

“In 2019 we will focus on driving solid organic revenue growth and margin improvement, achieving our committed cost and revenue synergies, and delivering $200 million of debt repayment. Engineering Adhesives will continue to grow into a larger and more profitable part of our business in 2019 and going forward,” Owens said. “In terms of guidance sensitivity, we are projecting a continued strong US dollar and China weakness along with relatively neutral raw material prices outside of China in 2019. Raw material demand and prices are currently declining in China and that trend may expand to the rest of the world if tariff and trade disputes persist. If raw material demand and prices start to decline in the rest of the world, our second half 2019 margins could be favorably impacted, resulting in EPS and EBITDA above the midpoint of our guidance range.

Owens continued, “We estimate that currency fluctuations and China impacted our 2019 guidance by approximately $40 million versus our original long-term forecast. Adjusting for these factors, our underlying EBITDA growth rates in 2018 and 2019 are in line with our original forecast of about 10 to 12 percent, and we anticipate annual EBITDA growth in this range through 2020. These factors impact the time to achieve our $600 million EBITDA target by about a year. We remain on track to meet or exceed our commitment of $600 million in debt paydown by the end of 2020 as a result of strong profit performance, high cash flow conversion rates and our focused capital management programs.”

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This guidance excludes approximately $15 to $20 million of pre-tax expenses required to integrate the Royal business and other businesses acquired in 2017, and between $6 and $8 million of pre-tax expenses related to ERP development costs. The company’s guidance could be impacted by further rule making relative to US Tax Reform. A complete reconciliation of the non-GAAP financial information contained in our 2019 guidance is not being provided in accordance with the “unreasonable efforts” exception of Item 10(e)(1)(i)(B) of Regulation S-K of the Securities and Exchange Commission.

Conference Call:

The Company will host an investor conference call to discuss fourth quarter results on Thursday, January 17, 2019, at 10:30 a.m. Eastern U.S. time. The conference call audio and accompanying presentation slides will be available to interested parties via a simultaneous webcast, and may be accessed from the company's website at https://investors.hbfuller.com/calendar. Participants should access the webcast 15 minutes prior to the start of the call to register for the event and install and test any necessary software. The webcast and presentation will be archived on the Company’s website. A telephone replay of the conference call will be available approximately 1 hour after the conclusion of the call, through Jan. 31, 2019. To access the telephone replay dial 1-877-344-7529 or 1-412-317-0088 and enter passcode 10127319.

Certain amounts presented in this release and the accompanying financial statements and data are preliminary and are subject to change in the company’s Annual Report on Form 10-K for the year ended December 1, 2018 when it is filed with the Securities and Exchange Commission.

Regulation G:

The information presented in this earnings release regarding segment operating income, adjusted gross profit, adjusted gross profit 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 generally accepted accounting principles (GAAP) and should not be construed as an alternative to the reported results determined in accordance with 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. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information is reconciled with reported GAAP results in the tables below with the exception of our forward-looking non-GAAP measures contained in our fiscal 2019 outlook, which are unknown or have not yet occurred.

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About H.B. Fuller:
Since 1887, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. With fiscal 2018 net revenue of over $3 billion, H.B. Fuller’s commitment to innovation brings together people, products and processes that answer and solve some of the world's biggest challenges. Our reliable, responsive service creates lasting, rewarding connections with customers in electronics, disposable hygiene, medical, transportation, aerospace, clean energy, packaging, construction, woodworking, general industries and other consumer businesses. And, our promise to our people connects them with opportunities to innovate and thrive. For more information, visit us at https://www.hbfuller.com/.

Safe Harbor for Forward-Looking Statements:

Certain statements in this document may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, including but not limited to the following: the Royal transaction may involve unexpected costs or liabilities; our business or stock price may suffer as a results of uncertainty surrounding the transaction; the substantial amount of debt we have incurred to finance our acquisition of Royal, our ability to repay or refinance it or incur additional debt in the future, our need for a significant amount of cash to service and repay the debt and to pay dividends on our common stock, and the effect of restrictions contained on our debt agreements that limit the discretion of management in operating the business or ability to pay dividend; various risks to stockholders of not receiving dividends and risks to our ability to pursue growth opportunities if we continue to pay dividends according to the current dividend policy; we may be unable to achieve expected synergies and operating efficiencies from the transaction within the expected time frames or at all; we may be unable to successfully integrate Royal’s operations into our own, or such integration may be more difficult, time consuming or costly than expected; the ability to effectively implement Project ONE; political and economic conditions; product demand; competitive products and pricing; costs of and savings from restructuring initiatives; geographic and product mix; availability and price of raw materials; the Company’s relationships with its major customers and suppliers; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations; the impact of litigation and environmental matters; the effect of new accounting pronouncements and accounting charges and credits; and similar matters. Further information about the various risks and uncertainties can be found in the Company’s SEC 10-K filing for the fiscal year ended December 2, 2017. All forward-looking information represents management’s best judgment as of this date based on information currently available that in the future may prove to have been inaccurate. Additionally, the variety of products sold by the Company and the regions where the Company does business make it difficult to determine with certainty the increases or decreases in net revenue resulting from changes in the volume of products sold, currency impact, changes in product mix, and selling prices. However, managements’ best estimate of these changes as well as changes in other factors have been included.

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H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

In thousands, except per share amounts (unaudited)

	13 Weeks Ended			Percent of			13 Weeks Ended			Percent of
	December 1, 2018			Net Revenue			December 2, 2017			Net Revenue
Net revenue	$	768,429			100.0	%	$	678,200			100.0	%
Cost of sales		(558,829	)		(72.7	%)		(509,412	)		(75.1	%)
Gross profit		209,600			27.3	%		168,788			24.9	%
Selling, general and administrative expenses		(139,844	)		(18.2	%)		(151,126	)		(22.3	%)
Other expense, net		(2,324	)		(0.3	%)		(26,163	)		(3.9	%)
Interest expense		(27,574	)		(3.6	%)		(19,073	)		(2.8	%)
Interest income		3,005			0.4	%		1,762			0.3	%
Income (loss) before income taxes and income from equity method investments		42,863			5.6	%		(25,812	)		(3.8	%)
Income (taxes) benefit		(3,488	)		(0.5	%)		16,691			2.5	%
Income from equity method investments		1,990			0.3	%		2,228			0.3	%
Income (loss) from continuing operations		41,365			5.4	%		(6,893	)		(1.0	%)
Net income (loss) including non-controlling interests		41,365			5.4	%		(6,893	)		(1.0	%)
Net income attributable to non-controlling interests		(20	)		(0.0	%)		(14	)		(0.0	%)
Net income (loss) attributable to H.B. Fuller	$	41,345			5.4	%	$	(6,907	)		(1.0	%)
Basic income (loss) per common share attributable to H.B. Fuller
Income from continuing operations		0.82						(0.14	)
Basic income (loss) per common share attributable to H.B. Fuller	$	0.82					$	(0.14	)
Diluted income (loss) per common share attributable to H.B. Fuller
Income from continuing operations		0.79						(0.13	)
Diluted income (loss) per common share attributable to H.B. Fuller	$	0.79					$	(0.13	)
Weighted-average common shares outstanding:
Basic		50,712						50,356
Diluted		52,017						51,724

Selected Balance Sheet Information (subject to change prior to filing of the Company's Annual Report on Form 10-K)
	December 1, 2018		December 2, 2017		December 3, 2016
Cash & cash equivalents	$	150,793	$	194,398	$	142,245
Trade accounts receivable, net		485,719		473,700		351,130
Inventories		355,563		372,102		258,096
Trade payables		273,378		268,467		162,964
Total assets		4,175,271		4,373,243		2,066,565
Total debt		2,247,628		2,451,910		703,271

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H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

In thousands, except per share amounts (unaudited)

	52 Weeks Ended			Percent of			52 Weeks Ended			Percent of
	December 1, 2018			Net Revenue			December 2, 2017			Net Revenue
Net revenue	$	3,041,002			100.0	%	$	2,306,043			100.0	%
Cost of sales		(2,204,108	)		(72.5	%)		(1,700,973	)		(73.8	%)
Gross profit		836,894			27.5	%		605,070			26.2	%
Selling, general and administrative expenses		(582,132	)		(19.1	%)		(477,030	)		(20.7	%)
Other income (expense), net		1,184			0.0	%		(27,667	)		(1.2	%)
Interest expense		(110,994	)		(3.6	%)		(43,701	)		(1.9	%)
Interest income		11,774			0.4	%		3,927			0.2	%
Income from continuing operations before income taxes and income from equity method investments		156,726			5.2	%		60,599			2.6	%
Income benefit (taxes)		6,356			0.2	%		(9,810	)		(0.4	%)
Income from equity method investments		8,150			0.3	%		8,677			0.4	%
Income from continuing operations		171,232			5.6	%		59,466			2.6	%
Net income including non-controlling interests		171,232			5.6	%		59,466			2.6	%
Net income attributable to non-controlling interests		(24	)		(0.0	%)		(48	)		(0.0	%)
Net income attributable to H.B. Fuller	$	171,208			5.6	%	$	59,418			2.6	%
Basic income per common share attributable to H.B. Fuller
Income from continuing operations		3.38						1.18
Basic income per common share attributable to H.B. Fuller	$	3.38					$	1.18
Diluted income per common share attributable to H.B. Fullera
Income from continuing operations		3.29						1.15
Diluted income per common share attributable to H.B. Fullera	$	3.29					$	1.15
Weighted-average common shares outstanding:
Basic		50,591						50,370
Diluted		51,975						51,619
Dividends declared per common share	$	0.615					$	0.590

^a Income per share amounts may not add due to rounding

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H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

	13 Weeks Ended						52 Weeks Ended
	December 1, 2018			December 2, 2017			December 1, 2018			December 2, 2017
Net income attributable to H.B. Fuller	$	41,345		$	(6,907	)	$	171,208		$	59,418
Acquisition project costs		616			1,894			2,833			5,258
Tonsan call option agreement		3,555			(1,705	)		1,496			(3,946	)
Organizational realignment		469			789			2,836			15,620
Royal restructuring and integration		5,930			43,893			20,351			47,423
Tax reform		(7,138	)		-			(43,276	)		-
Other		1,787			(1,415	)		514			2,787
Adjusted net income attributable to H.B. Fuller2		46,564			36,549			155,962			126,560
Add:
Interest expense		27,468			17,949			110,624			42,365
Interest income		(3,005	)		(720	)		(11,774	)		(2,886	)
Income taxes		13,580			11,226			49,541			46,200
Depreciation expense		17,109			14,697			67,910			50,559
Amortization expense		18,855			13,114			76,490			36,243
Adjusted EBITDA2		120,571			92,815			448,753			299,041
Diluted Shares		52,017			51,724			51,975			51,619
Adjusted diluted income per common share attributable to H.B. Fuller2	$	0.90		$	0.71		$	3.00		$	2.45
Revenue	$	768,429		$	678,200		$	3,041,002		$	2,306,043
Adjusted EBITDA margin2		15.7	%		13.7	%		14.8	%		13.0	%

² Adjusted net income attributable to H.B. Fuller, adjusted diluted income per common share attributable to H.B. Fuller, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. Adjusted net income attributable to H.B. Fuller is defined as net income before the specific adjustments shown above. Adjusted diluted income per common share is defined as adjusted net income attributable to H.B. Fuller divided by the number of diluted common shares. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation, amortization and the specific adjustments shown above. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenue. The table above provides a reconciliation of adjusted net income attributable to H.B. Fuller, adjusted diluted income per common share attributable to H.B. Fuller, adjusted EBITDA and adjusted EBITDA margin to net income attributable to H.B. Fuller, the most directly comparable financial measure determined and reported in accordance with GAAP.

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H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

In thousands (unaudited)

	13 Weeks Ended			13 Weeks Ended
	December 1, 2018			December 2, 2017
Net Revenue:
Americas Adhesives	$	278,105		$	254,100
EIMEA		184,522			171,984
Asia Pacific		71,135			74,609
Construction Adhesives		105,922			80,450
Engineering Adhesives		128,745			97,057
Total H.B. Fuller	$	768,429		$	678,200
Segment Operating Income:
Americas Adhesives	$	30,430		$	17,579
EIMEA		9,424			68
Asia Pacific		6,939			5,402
Construction Adhesives		7,212			(9,891	)
Engineering Adhesives		15,751			4,504
Total H.B. Fuller	$	69,756		$	17,662
Adjusted EBITDA2
Americas Adhesives	$	44,988		$	39,151
EIMEA		20,937			18,011
Asia Pacific		9,312			8,461
Construction Adhesives		18,460			9,389
Engineering Adhesives		27,059			15,869
Total H.B. Fuller	$	120,756		$	90,881
Adjusted EBITDA Margin2
Americas Adhesives		16.2	%		15.4	%
EIMEA		11.3	%		10.5	%
Asia Pacific		13.1	%		11.3	%
Construction Adhesives		17.4	%		11.7	%
Engineering Adhesives		21.0	%		16.4	%
Total H.B. Fuller		15.7	%		13.4	%

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H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

In thousands (unaudited)

	52 Weeks Ended			52 Weeks Ended
	December 1, 2018			December 2, 2017
Net Revenue:
Americas Adhesives	$	1,099,918		$	907,765
EIMEA		738,553			568,658
Asia Pacific		278,079			264,692
Construction Adhesives		446,101			260,330
Engineering Adhesives		478,351			304,598
Total H.B. Fuller	$	3,041,002		$	2,306,043
Segment Operating Income:
Americas Adhesives	$	115,363		$	91,198
EIMEA		40,060			18,821
Asia Pacific		17,995			14,826
Construction Adhesives		32,917			(12,975	)
Engineering Adhesives		48,427			16,170
Total H.B. Fuller	$	254,762		$	128,040
Adjusted EBITDA2
Americas Adhesives	$	172,112		$	137,583
EIMEA		83,491			62,767
Asia Pacific		29,145			26,362
Construction Adhesives		77,834			26,393
Engineering Adhesives		81,463			39,090
Total H.B. Fuller	$	444,045		$	292,195
Adjusted EBITDA Margin2
Americas Adhesives		15.6	%		15.2	%
EIMEA		11.3	%		11.0	%
Asia Pacific		10.5	%		10.0	%
Construction Adhesives		17.4	%		10.1	%
Engineering Adhesives		17.0	%		12.8	%
Total H.B. Fuller		14.6	%		12.7	%

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H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

	13 Weeks Ended					52 Weeks Ended
	December 1, 2018		December 2, 2017			December 1, 2018		December 2, 2017
Income before income taxes and income from equity method investments	$	42,863	$	(25,812	)	$	156,726	$	60,599
Adjustments:
Acquisition project costs		848		2,846			3,957		7,990
Tonsan call option agreement		3,555		(1,705	)		1,496		(3,946	)
Organizational realignment		544		1,018			2,840		19,963
Royal restructuring and integration		8,094		66,486			28,566		71,917
Tax reform		305		-			305		-
Other		1,965		2,728			3,487		7,608
Adjusted income before income taxes and income from equity method investments 3	$	58,174	$	45,561		$	197,377	$	164,131

³ Adjusted income before income taxes and income from equity investments is a non-GAAP financial measure. Adjusted income before income taxes and income from equity investments is defined as income before income taxes and income from equity investments before the specific adjustments shown above. The table above provides a reconciliation of adjusted income before income taxes and income from equity investments to income before income taxes and income from equity investments, the most directly comparable financial measure determined and reported in accordance with GAAP.

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

	13 Weeks Ended						52 Weeks Ended
	December 1, 2018			December 2, 2017			December 1, 2018			December 2, 2017
Income Taxes	$	(3,488	)	$	16,691		$	6,356		$	(9,810	)
Adjustments:
Acquisition project costs		(232	)		(952	)		(1,124	)		(2,732	)
Organizational realignment		(75	)		(230	)		(4	)		(4,343	)
Royal restructuring and integration		(2,164	)		(22,592	)		(8,215	)		(24,494	)
Tax reform		(7,444	)		-			(43,582	)		-
Other		(177	)		(4,143	)		(2,972	)		(4,821	)
Adjusted income taxes4	$	(13,580	)	$	(11,226	)	$	(49,541	)	$	(46,200	)
Adjusted income before income taxes and income from equity method investments	$	58,174		$	45,561		$	197,377		$	164,131
Adjusted effective income tax rate4		23.3	%		24.6	%		25.1	%		28.1	%

⁴ Adjusted income taxes and adjusted effective income tax rate are non-GAAP financial measures. Adjusted income taxes is defined as income taxes before the specific adjustments shown above. Adjusted effective income tax rate is defined as income taxes divided by adjusted income before income taxes and income from equity method investments. The table above provides a reconciliation of adjusted income taxes and adjusted effective income tax rate to income taxes, the most directly comparable financial measure determined and reported in accordance with GAAP.

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H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands (unaudited)

	13 Weeks Ended						52 Weeks Ended
	December 1, 2018			December 2, 2017			December 1, 2018			December 2, 2017
Net revenue		768,429			678,200			3,041,002			2,306,043
Gross profit	$	209,600		$	168,788		$	836,894		$	605,070
Gross profit margin		27.3	%		24.9	%		27.5	%		26.2	%
Adjustments:
Acquisition project costs		526			1,344			2,521			4,287
Organizational realignment		235			442			1,533			11,452
Royal restructuring and integration		2,810			10,781			5,027			10,781
Other		2,407			(1,052	)		2,407			(1,900	)
Adjusted gross profit5	$	215,578		$	180,303		$	848,382		$	629,690
Adjusted gross profit margin5		28.1	%		26.6	%		27.9	%		27.3	%

⁵ Adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit and adjusted gross profit margin is defined as gross profit and gross profit margin excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted gross profit and gross profit margin to gross profit and gross profit margin, the most directly comparable financial measure determined and reported in accordance with GAAP. 

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands (unaudited)

	13 Weeks Ended						52 Weeks Ended
	December 1, 2018			December 2, 2017			December 1, 2018			December 2, 2017
Selling, general and administrative expenses	$	(139,844	)	$	(151,126	)	$	(582,132	)	$	(477,030	)
Adjustments:
Acquisition project costs		323			1,359			1,436			3,561
Tonsan call option agreement		3,450			(1,780	)		1,126			(4,233	)
Organizational realignment		309			577			1,308			8,511
Royal restructuring and integration		5,114			29,957			23,370			35,387
Tax reform		305						305
Other		(442	)		3,780			5,851			9,508
Adjusted selling, general and administrative expenses6	$	(130,785	)	$	(117,233	)	$	(548,736	)	$	(424,296	)

⁶ Adjusted selling, general and administrative expenses is a non-GAAP financial measure. Adjusted selling, general and administrative expenses is defined as selling, general and administrative expenses excluding the specific adjustments shown above. The table above provides a reconciliation of adjusted selling, general and administrative expenses to selling, general and administrative expenses, the most directly comparable financial measure determined and reported in accordance with GAAP. 

13

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands (unaudited)

	Americas				Asia			Construction			Engineering					Corporate			H.B. Fuller
	Adhesives		EIMEA		Pacific			Adhesives			Adhesives			Total		Unallocated			Consolidated
13 Weeks Ended December 1, 2018	$	30,430	$	9,424	$	6,939		$	7,212		$	15,751		$	69,756	$	(28,411	)	$	41,345
Net income attributable to H.B. Fuller
Adjustments:
Acquisition project costs		794		22		10			12			10			848		(232	)		616
Tonsan call option agreement		-		-		-			-			3,449			3,449		106			3,555
Organizational realignment		12		361		4			163			4			544		(75	)		469
Royal restructuring and integration		1,641		3,067		401			1,532			1,284			7,925		(1,995	)		5,930
Tax reform		116		77		36			38			38			305		(7,443	)		(7,138	)
Other		2,024		142		(97	)		(2	)		(102	)		1,965		(178	)		1,787
Adjusted net income attributable to H.B. Fuller2		35,017		13,093		7,293			8,955			20,434			84,792		(38,228	)		46,564
Add:
Interest expense		-		-		-			-			-			-		27,468			27,468
Interest income		-		-		-			-			-			-		(3,005	)		(3,005	)
Income taxes		-		-		-			-			-			-		13,580			13,580
Depreciation expense		4,504		5,400		1,599			3,091			2,515			17,109		-			17,109
Amortization expense		5,467		2,444		420			6,414			4,110			18,855		-			18,855
Adjusted EBITDA 2	$	44,988	$	20,937	$	9,312		$	18,460		$	27,059		$	120,756	$	(185	)	$	120,571

	Americas				Asia		Construction		Engineering				Corporate			H.B. Fuller
	Adhesives		EIMEA		Pacific		Adhesives		Adhesives		Total		Unallocated			Consolidated
52 Weeks Ended December 1, 2018	$	115,363	$	40,060	$	17,995	$	32,917	$	48,427	$	254,762	$	(83,554	)	$	171,208
Net income attributable to H.B. Fuller
Adjustments:
Acquisition project costs		3,674		95		45		48		95		3,957		(1,124	)		2,833
Tonsan call option agreement		-		-		-		-		1,126		1,126		370			1,496
Organizational realignment		199		1,701		9		922		9		2,840		(4	)		2,836
Royal restructuring and integration		8,781		7,663		1,925		5,963		4,065		28,397		(8,046	)		20,351
Tax reform		116		77		36		38		38		305		(43,581	)		(43,276	)
Other		4,422		1,712		651		786		687		8,258		(7,744	)		514
Adjusted net income attributable to H.B. Fuller2		132,555		51,308		20,661		40,674		54,447		299,645		(143,683	)		155,962
Add:
Interest expense		-		-		-		-		-		-		110,624			110,624
Interest income		-		-		-		-		-		-		(11,774	)		(11,774	)
Income taxes		-		-		-		-		-		-		49,541			49,541
Depreciation expense		17,626		22,088		6,574		11,653		9,969		67,910		-			67,910
Amortization expense		21,931		10,095		1,910		25,507		17,047		76,490		-			76,490
Adjusted EBITDA2	$	172,112	$	83,491	$	29,145	$	77,834	$	81,463	$	444,045	$	4,708		$	448,753

Note: Adjusted EBITDA is a non-GAAP financial measure. The tables above provide a reconciliation of adjusted EBITDA for each segment to net income attributable to H.B. Fuller for each segment, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.

14

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands (unaudited)

	Americas					Asia			Construction			Engineering									H.B. Fuller
	Adhesives		EIMEA			Pacific			Adhesives			Adhesives			Total			Unallocated			Consolidated
13 Weeks Ended December 2, 2017	$	17,579	$	68		$	5,402		$	(9,891	)	$	4,504		$	17,662		$	(24,569	)	$	(6,907	)
Net income attributable to H.B. Fuller
Adjustments:
Acquisition project costs		2,760		(71	)		(34	)		(35	)		83			2,703			(809	)		1,894
Tonsan call option agreement		-		-			-			-			(1,780	)		(1,780	)		75			(1,705	)
Organizational realignment		130		514			35			274			66			1,019			(230	)		789
Royal Restructuring		10,362		10,024			621			12,283			7,448			40,738			3,155			43,893
Other		713		946			451			142			476			2,728			(4,143	)		(1,415	)
Adjusted net income attributable to H.B. Fuller2		31,544		11,481			6,475			2,773			10,797			63,070			(26,521	)		36,549
Add:
Interest expense		-		-			-			-			-			-			17,949			17,949
Interest income		-		-			-			-			-			-			(720	)		(720	)
Income taxes		-		-			-			-			-			-			11,226			11,226
Depreciation expense		4,056		4,656			1,525			2,378			2,082			14,697			-			14,697
Amortization expense		3,551		1,874			461			4,238			2,990			13,114			-			13,114
Adjusted EBITDA2	$	39,151	$	18,011		$	8,461		$	9,389		$	15,869		$	90,881		$	1,934		$	92,815

	Americas				Asia		Construction			Engineering									H.B. Fuller
	Adhesives		EIMEA		Pacific		Adhesives			Adhesives			Total			Unallocated			Consolidated
52 Weeks Ended December 2, 2017	$	91,198	$	18,821	$	14,826	$	(12,975	)	$	16,170		$	128,040		$	(68,622	)	$	59,418
Net income attributable to H.B. Fuller
Adjustments:
Acquisition project costs		6,904		312		151		157			323			7,847			(2,589	)		5,258
Tonsan call option agreement		-		-		-		-			(4,233	)		(4,233	)		287			(3,946	)
Organizational realignment		2,444		8,973		1,790		5,895			861			19,963			(4,343	)		15,620
Royal Restructuring		11,850		11,220		731		14,022			8,345			46,168			1,255			47,423
Other		2,188		2,379		1,133		711			1,197			7,608			(4,821	)		2,787
Adjusted net income attributable to H.B. Fuller2		114,584		41,705		18,631		7,810			22,663			205,393			(78,833	)		126,560
Add:
Interest expense		-		-		-		-			-			-			42,365			42,365
Interest income		-		-		-		-			-			-			(2,886	)		(2,886	)
Income taxes		-		-		-		-			-			-			46,200			46,200
Depreciation expense		14,491		15,917		5,976		7,432			6,743			50,559			-			50,559
Amortization expense		8,508		5,145		1,755		11,151			9,684			36,243			-			36,243
Adjusted EBITDA2	$	137,583	$	62,767	$	26,362	$	26,393		$	39,090		$	292,195		$	6,846		$	299,041

Note: Adjusted EBITDA is a non-GAAP financial measure. The tables above provide a reconciliation of adjusted EBITDA for each segment to net income attributable to H.B. Fuller for each segment, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP.

15

H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

NET REVENUE GROWTH

(unaudited)

13 Weeks Ended December 1, 2018
	Americas Adhesives			EIMEA			Asia Pacific			Construction Adhesives			Engineering Adhesives			Total HBF
Price		5.0	%		4.3	%		2.4	%		0.2	%		2.1	%		3.5	%
Volume		(4.0	%)		(1.5	%)		(3.1	%)		(1.0	%)		15.8	%		(0.1	%)
Mix		2.4	%		0.3	%		(1.1	%)		(2.5	%)		(1.1	%)		0.4	%
Acquisition		11.8	%		12.1	%		1.1	%		35.9	%		19.8	%		14.7	%
Constant Currency Growth7		15.2	%		15.2	%		(0.7	%)		32.6	%		36.6	%		18.5	%
F/X		(5.8	%)		(7.9	%)		(4.0	%)		(1.0	%)		(4.0	%)		(5.2	%)
		9.4	%		7.3	%		(4.7	%)		31.6	%		32.6	%		13.3	%
Organic Revenue Growth7		3.4	%		3.1	%		-1.8	%		-3.3	%		16.8	%		3.8	%

52 Weeks Ended December 1, 2018

	Americas Adhesives			EIMEA			Asia Pacific			Construction Adhesives			Engineering Adhesives			Total HBF
Price		3.8	%		4.4	%		1.4	%		0.0	%		4.8	%		3.4	%
Volume		(3.4	%)		(0.9	%)		0.9	%		(0.2	%)		9.2	%		(0.3	%)
Mix		1.4	%		0.4	%		(0.5	%)		(1.0	%)		0.7	%		0.6	%
Acquisition		22.1	%		24.3	%		1.5	%		72.4	%		39.9	%		28.3	%
Constant Currency Growth7		23.9	%		28.2	%		3.3	%		71.2	%		54.6	%		32.0	%
F/X		(2.7	%)		1.7	%		1.8	%		0.2	%		2.5	%		(0.1	%)
		21.2	%		29.9	%		5.1	%		71.4	%		57.1	%		31.9	%
Organic Revenue Growth7		1.8	%		3.9	%		1.8	%		-1.2	%		14.7	%		3.7	%

⁷ Constant currency revenue growth is a non-GAAP financial measure defined as changes in revenue due to price, volume, mix and acquisitions and excludes revenue changes driven by foreign currency translation. Organic revenue growth is a non-GAAP financial measure defined as constant currency revenue growth less growth from acquisitions.

16

1 Proforma results were provided to reflect the historical combination of H.B. Fuller and Royal as of the comparable prior periods before the acquisition was completed in October of 2017. The proforma results and reconciliations to GAAP outcomes were filed on a Form 8-K dated March 28, 2018.

17