Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — DowDuPont — Q3 2017 Earnings Presentation
22 slides from Dupont De Nemours's earnings presentation, Nov 2, 2017
Slide 1: DowDuPont 3Q17 Earnings Conference Call
DowDuPont 3Q17 Earnings Conference Call November 2, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement Regulation G This presentation includes information that does not conform to U.S. GAAP and are considered non-GAAP measures. These measures include the Company's pro forma consolidated results and pro forma earnings per share on an adjusted basis, which excludes the after-tax i
Slide 3: Safe Harbor Statement, continued
Safe Harbor Statement, continued Forward-Looking Statements, continued These risks, as well as other risks associated with the merger and the Intended Business Separations, are more fully discussed in (1) the Registration Statement and (2) the current, quarterly and annual reports filed with the SEC
Slide 4: Highlights
Highlights • Delivered solid 3Q17 pro forma results – Sales increased 8% – Volume growth of 4% – Operating EBITDA up 7% – Adjusted EPS increased 10% • Closed the merger on August 31st • Realigned the portfolio – Shifted >$8B in sales, ~$2.4B in EBITDA to Specialty Products – Aligned businesses along
Slide 5: Strategic Drivers
Strategic Drivers Cost Synergies Growth Synergies Stand and Spin • Remain committed to total $3B • Advancing playbook to deliver • Closed transaction on Aug. 31 of cost synergies $1B in growth synergies • New reporting structure • New division targets: • Early examples: complete • Agriculture: $1.0B
Slide 6: 3Q 2017 Financial Highlights
3Q 2017 Financial Highlights Financial Performance Snapshot 3Q16 3Q17 B/(W) Pro Forma Net Sales ($MM) 16,991 18,285 +1,294 Pro Forma Operating EBITDA ($MM) 3,022 3,221 +199 Pro Forma Adjusted EPS ($/share) $0.50 $0.55 +$0.05 3Q 2017 Pro Forma Adjusted EPS Variance Highlights • Volume growth from con
Slide 7: Agriculture: 3Q 2017 Pro Forma Highlights
Agriculture: 3Q 2017 Pro Forma Highlights Agriculture Pro Forma 3Q16 3Q17 • Crop Protection sales declined 6 percent due to high inventory levels, Net Sales ($MM) 1,998 1,911 particularly in Brazil, pressuring both volume and price; Crop Protection Op. EBITDA ($MM) (172) (239) volumes increased in N
Slide 8: Materials Science: 3Q 2017 Pro Forma Highlights
Materials Science: 3Q 2017 Pro Forma Highlights Performance Materials & Coatings Pro Forma 3Q16 3Q17 • Consumer Solutions delivered sales growth in all businesses, led by volume gains in Net Sales ($MM) 2,046 2,219 most geographies and price/volume management in silicone intermediate products Op. EB
Slide 9: Specialty Products: 3Q 2017 Pro Forma Highlights
Specialty Products: 3Q 2017 Pro Forma Highlights Electronics & Imaging Pro Forma 3Q16 3Q17 Net Sales ($MM) 1,138 1,198 • Broad-based volume growth across key end-markets, led by double-digit gains in semiconductor, consumer electronics, industrial, PV and display end-markets Op. EBITDA ($MM) 341 382
Slide 10: 4Q17 Modeling Guidance
4Q17 Modeling Guidance Refer to slide 14 in Appendix for additional commentary on segment outlook Net Sales: $19.0 - $19.5B >7% vs. 4Q161 Op. EBITDA: 11-13% vs. 4Q161 Segment Outlook 4Q17 vs. 4Q16 Net Sales Op. EBITDA (incl. Equity Earnings) Agriculture Up ~10% ~$225MM Performance Materials & Coatin
Slide 11: Outlook
Outlook Macro Outlook • Global economic expansion on continued strength in U.S. and with notable improvements in Europe – Consumer-driven strength an increasingly common theme globally • Select headwinds remain, including geopolitical uncertainties and elevated emerging market debt levels Market Out
Slide 12: Disciplined Focus on Financial, Strategic and Operational Results
Disciplined Focus on Financial, Strategic and Operational Results Deliver operating and financial plan 1 • Continued focus on volume and earnings growth • Ongoing productivity and manufacturing excellence Achieve synergy targets • Finalize detailed plans to achieve cost synergies & mitigate dis-syne
Slide 13: Slide 13
Slide 14: 4Q17 Segment Expectations
4Q17 Segment Expectations Refer in conjunction with Slide 10 Segments Key Sales and Operating EBITDA Outlook Drivers (4Q17 vs. 4Q161) Ag segment sales growth driven by increased fungicide volumes and the continued penetration of Leptra® corn hybrids. Agriculture Benefits from lower pension/OPEB cost
Slide 15: Agriculture
Agriculture 3Q17 Pro Forma Sales • Ag markets continue to be challenging driven by lower expected corn planted area, elevated crop protection inventory levels, and weak farm economics. 3Q operating EBITDA¹ loss increased by $67MM as lower sales were partially offset by lower product costs and benefi
Slide 16: Performance Materials & Coatings
Performance Materials & Coatings 3Q17 Pro Forma Sales Coatings & Performance Monomers • Higher prices in all geographic areas • Modest decline in volume related to 3,928 hurricane-related lost sales and actions to shed lower margin business Coatings & Performance Monomers North America Asia Pacific
Slide 17: Industrial Intermediates & Infrastructure
Ind. Intermediates & Infrastructure 3Q17 Pro Forma Sales Construction Chemicals • Demand growth in acrylics-based and methyl cellulosics products • Modest decline in pro forma op. EBITDA due to raw materials cost increases that were partially offset by volume and price 3,928 increases Energy Solutio
Slide 18: Packaging & Specialty Plastics
Packaging & Specialty Plastics 3Q17 Pro Forma Sales Sales • Higher sales driven by volume growth and price gains • Volume grew 6 percent on consumer-led demand across packaging, health & hygiene and footwear applications 3,928 • Double-digit volume gains in health & hygiene end-markets in the Americ
Slide 19: Electronics & Imaging
Electronics & Imaging 3Q17 Pro Forma Sales Sales • 13 percent volume growth across key end-markets and almost all geographic areas, primarily Asia Pacific • Double-digit gains in semiconductor, consumer electronics, industrial, photovoltaics and display end-markets • Growth in semiconductor as stron
Slide 20: Nutrition & Biosciences
Nutrition & Biosciences 3Q17 Pro Forma Sales Industrial Biosciences • Pro forma net sales grew on improved demand for microbials, bioactives and biomaterials • Microbial demand improved across all geographies, primarily in North America on growth in energy markets • Biomaterials growth led by local
Slide 21: Transportation & Advanced Polymers
Transportation & Adv. Polymers 3Q17 Pro Forma Sales Sales • Pro forma sales increased 9 percent to $1.3 billion due to volume and local price gains • Strong demand from the automotive market, 3,928 particularly in Asia Pacific, Latin America and North America Asia Pacific EMEA; growth outpaced auto
Slide 22: Safety & Construction
Safety & Construction 3Q17 Pro Forma Sales Sales • Pro forma sales of $1.3 billion increased 6 percent due to volume gains of 6 percent with increases in every region • Oil & gas markets drove a double-digit gain in 3,928 Nomex® thermal garments and mid-single-digit gain in Kevlar ® high-strength ma