Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q1 2023 Earnings Presentation
27 slides from Dupont De Nemours's earnings presentation, May 2, 2023
Slide 1: 1Q 2023 Financial Results
1Q 2023 Financial Results May 2, 2023
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures This communication includes information that does not conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating
Slide 3: 1Q 2023 Highlights
1Q 2023 Highlights 1Q 2023 1Q 2023 Actuals Guide 3% top-line organic sales decline driven by challenging environment within consumer electronics Net Sales $3.0 B ~$2.9 B Operating EBITDA down on lower volumes; adjusted EPS growth of 2% versus prior year Operating Strength in water, auto adhesi
Slide 4: Spectrum: A leader in specialty medical devices
Spectrum: A leader in specialty medical devices ~$500M >12% CAGR • A leader in design and manufacturing of 2023E revenue¹ 2019-2023E¹ complex, hard-to-manufacture medical devices • Supply custom solutions to 22 of top 26 medical device OEMs 190+ 2,200 Engineers Employees • Long-term customer relatio
Slide 5: Our Strong Track Record Serving Healthcare Markets
Our Strong Track Record Serving Healthcare Markets ~$800 million revenue from two leading businesses with high growth and strong margins Liveo™ Healthcare Solutions Tyvek® Healthcare Packaging Leading market position in silicone healthcare solutions with best-in-class Trusted partner for medical dev
Slide 6: A Powerful Combination
A Powerful Combination ~10% of consolidated DuPont revenue to be derived from healthcare markets Expands high-growth, low cyclicality, high margin healthcare exposure for DuPont Combined total addressable market of $11.0 billion significantly increased with the combination 6
Slide 7: Transaction Summary
Transaction Summary • Spectrum’s complex parts and device manufacturing competencies complement DuPont’s deep materials science expertise Strong • Expands design and production capabilities for customers in fast growing medical Strategic Fit device and biopharma processing markets • Aligned with DuP
Slide 8: Strong Balance Sheet, Disciplined Capital Allocation
Strong Balance Sheet, Disciplined Capital Allocation Adj. Net Debt / EBITDA(1) M&M Divestiture Proceeds Fully Allocated › $3.25B ASR initiated in 4Q’22 underway – expect to complete during Q3 › $2B of remaining authorization – expect to execute ASR following completion of current program › Retired $
Slide 9: 1Q 2023 Financial Highlights
1Q 2023 Financial Highlights NET SALES ORGANIC OPERATING ADJUSTED CASH PROVIDED $3.0 billion SALES EBITDA EPS BY OPERATIONS -8% -3% $714 million $0.84 / share $343 million › Price +4% - Carryover impact of actions taken in › Operating EBITDA down 13% year-over-year driven 2022 to offset broad-based
Slide 10: 1Q 2023 Adjusted EPS Bridge
1Q 2023 Adjusted EPS Bridge Segment Results ($0.16) +2% $0.84 $0.82 ₊ Water ₊ Pricing ₊ Auto adhesives ₊ Interest ₊ Cost control ₊ Share ₋ Tax rate income and ₊ Aerospace lower interest repurchases ($0.02) ₊ Healthcare +$0.09 ₋ Inflation expense +$0.11 ₋ Reduced ₋ Consumer production rates electroni
Slide 11: Electronics & Industrial
Electronics & Industrial 1Q Net Sales Vol (-15%), Price (+2%), Currency (-2%), Portfolio (-1%) $1,536 -16% $ in Millions $1,296 Organic Growth 1Q 2023 YoY Highlights -13% • Organic sales growth by line of business: • Interconnect Solutions down 21% on volume declines related to decreased consumer el
Slide 12: Water & Protection
Water & Protection 1Q Net Sales Vol (-2%), Price (+6%), Currency (-3%), Portfolio (0%) +1% $1,449 $ in Millions $1,429 Organic Growth +4% 1Q 2023 YoY Highlights • Increase in price reflects the carryover impact of actions taken in 2022 to offset broad-based cost inflation • Organic sales growth by l
Slide 13: 2Q and FY 2023 Guidance
2Q and FY 2023 Guidance 2Q 2023 FY 2023(2) Key Assumptions Continued strength in water, auto adhesives and broad- $12.3 - $12.5 billion based Industrial end-markets including aerospace and Net Sales ~ $3.02 billion (Prior: $12.3 - $12.9 billion) healthcare Continued slower consumer demand and ch
Slide 14: Semi and Smartphone Market Forecasts
Semi and Smartphone Market Forecasts Semi MSI and Utilization Forecasts Smartphone Shipment Forecasts MSI UT Rate UT MSI Utilization rate trend correlated to MSI Million square 4,000 inches 120.0% Smartphone shipments 3,500 (million units) 342 100.0% 308 304 302 304 3,000 294 283 271 80.0% 2,500 2,0
Slide 15: 2023 Sustainability Report Highlights
2023 Sustainability Report Highlights Achievements and Impact CO2 35% Strengthened 2030 Scopes 1 and 2 Delivered innovative technology, engaging in and municipal settings, helping customers Innovate Protect Empower 7,000 GHG reduction solve complex water reduction of Scopes 1 commitment to and 2 gre
Slide 16: Appendix
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Slide 17: 1Q 2023 Net Sales Bridge
1Q 2023 Net Sales Bridge Organic Sales -3% Price +4% Volume -7% -2% -3% -13% +4% +5% -8% $3,274 $3,018 In Millions Divestiture of non-core business(1) Industrial Water Retained (Corporate & Other) Solutions Solutions Businesses Strengthening of Semiconductor Safety USD, primarily Technologies Soluti
Slide 18: 2023 Segment Expectations
2023 Segment Expectations Electronics & Water & Segment Industrial Protection • Top-line expected to be down low to mid-teens on • Top-line expected to be relatively flat on organic Key Drivers organic basis in 2Q’23 vs. year-ago period resulting basis in 2Q’23 vs. year-ago period as ongoing from co
Slide 19: Additional Modeling Guidance – Full Year 2023
Additional Modeling Guidance – Full Year 2023(4) Below-the-line estimates Items included in Operating EBITDA Base Tax Rate 23-24% R&D ~$525 million D&A ~$1,125 million, pre-tax Corporate & Other: - Corporate expenses ~$130 million Intangible Amortization ~$590 million, pre-tax - Operating results of
Slide 20: Innovation Driving Growth in Strategic Focus Areas
Innovation Driving Growth in Strategic Focus Areas Water Industrial Next-Generation Electronics Protection Technologies Automotive • Accelerated new business for • MemPulse® MBR • Announced Kevlar® EXO™ • Launched Liveo™ healthcare • Launched sustainable Litho products enabling plus FilmTec™ RO mult
Slide 21: Overview of M&M Divestitures
Overview On February 18, 2022, DuPont announced that it has entered into definitive agreements to divest a majority of its historical Mobility & Materials segment, excluding certain Advanced Solutions and Performance Resins businesses, to Celanese Corporation (“Celanese”), (the “M&M Divestiture”). O
Slide 22: Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures Net Sales In millions 1Q 23 1Q 22 Net S ales $ 3,018 $ 3,274 Non-GAAP Calculation of Operating EBITDA In millions 1Q 23 1Q 22 Income from continuing operations, net of tax (GAAP) $ 273 $ 232 + Provision for income taxes on continuing operations 83
Slide 23: Selected Financial Information and Non-GAAP Measures Cont.
Selected Financial Information and Non-GAAP Measures Cont. Pretax Non-GAAP Adjustments to Net Income (Unaudited) In millions 1Q23 1Q22 1 Income from continuing operations before income taxes (GAAP) $ 356 $ 279 Less: Significant items charge, before tax 1 (8) (111) Less: Amortization of intangibles,
Slide 24: Selected Financial Information and Non-GAAP Measures Cont.
Selected Financial Information and Non-GAAP Measures Cont. Net Sales by Segment and Geographic Region In millions 1Q23 1Q22 Electronics & Industrial $ 1,296 $ 1,536 Water & Protection 1,449 1,429 Corporate & Other 273 309 Total net sales by segment $ 3,018 $ 3,274 U.S. & Canada $ 1,023 $ 1,049 2 EM
Slide 25: Selected Financial Information and Non-GAAP Measures Cont.
Selected Financial Information and Non-GAAP Measures Cont. Operating EBITDA In millions 1Q23 1Q22 Electronics & Industrial $ 362 $ 476 Water & Protection 344 341 Corporate & Other 8 1 Total operating EBITDA (non-GAAP) $ 714 $ 818 Operating EBITDA Margin In millions 1Q23 1Q22 Electronics & Industrial
Slide 26: Non-GAAP Free Cash Flow
Selected Financial Information and Non-GAAP Measures Cont. Non-GAAP Free Cash Flow In millions 1Q23 1Q22 Cash Flow from Operations (GAAP) 1 $ 343 $ 209 Capital Expenditures (241) (251) Adjusted Free Cash Flow (non-GAAP) $ 102 $ (42) 1. Includes cash activity related to the M&M Businesses, including
Slide 27: Trademarks and investor teach-in replay
E&I line of business (Semiconductor Technologies, Interconnect Solutions and Industrial Solutions) and W&P line of business (Water Solutions, Shelter Solutions and Safety Solutions) investor teach-in sessions are available for replay at www.investors.dupont.com © 2023 DuPont de Nemours, Inc. All rig