Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q3 2020 Earnings Presentation
16 slides from Dupont De Nemours's earnings presentation, Oct 29, 2020
Slide 1: 3Q 2020 Earnings Conference Call
3Q 2020 Earnings Conference Call October 29, 2020
Slide 2: Delivering on our Commitments
COVID-19 Response Delivering on our • Safety & well-being of our employees remains top priority Commitments • Safely maintaining our operations; all operating as planned • Maintaining a strong balance sheet – repayment of commercial paper reduced net debt / operating EBITDA to below 3X • Continue to
Slide 3: Cash Generation & Cost Productivity Delivering Results
Cash Generation & Cost Productivity Delivering Results Cash generation G&A productivity • Free cash flow conversion(2) of 140% year-to-date • 185 basis point reduction in non-manufacturing costs as a percent of sales (primarily G&A) • Actions to manage inventory levels delivering results; down ~7% f
Slide 4: 3Q 2020 Financial Highlights
3Q 2020 Financial Highlights NET SALES ORGANIC OPERATING Adjusted 3Q 2020 Cash from $5.1 billion SALES(1) EBITDA(1) EPS(1) Operating Activities -6% -6% $1.3 billion $0.88 / share ~$1.3 billion Net Sales of $5.1B Decremental margins of 31% ahead of Free Cash Flow(1) of Portfolio 0%, Currency 0%, expe
Slide 5: 3Q 2020 Net Sales Bridge
3Q 2020 Net Sales Bridge Organic Sales(1) Change -6% Market Dynamics 0% 0% +8% -4% -14% Strong -9% -13% • Semiconductors • Water filtration $5,426 Divestments of: • Health & wellness › Sustainable Solutions (Non- Semiconductor Food & Beverage $5,096 • Tyvek® protective garment In Millions Core) Tech
Slide 6: 3Q 2020 Adjusted EPS Bridge
3Q 2020 Adjusted EPS(1) Bridge $0.96 $0.88 › Interest - +$0.02 › Share count - +$0.02 › Base tax rate – $(0.01) Segment Results 3Q19 Cost Savings Impact of organic Costs Associated with Portfolio Other 3Q20 Adjusted EPS(1) revenue declines Idling Facilities impacts Adjusted EPS(1) (primarily T&I and
Slide 7: Strong Cash Position
Strong Cash Position Proceeds from Portfolio Actions Strong Balance Sheet Strong Free Cash Flow • ~$7.3B from N&B/IFF Transaction(1) • Reduced commercial paper • YTD free cash flow conversion(2) of balances by ~$1.4B in 2020 140% o ~$2.3B available after planned debt repayments for • Net debt / EBIT
Slide 8: N&B & IFF Update
N&B & IFF Update 4Q Post 1H 2020 2H 2020 1Q 2021 2019 Close Separation/ Cleared Revenue Initial IFF N&B ~$7.3B Agreement Integration U.S. Leadership Anticipated & Cost Registration Shareholder Financing Cash Signed Teams In Regulatory Announce. Closing(1) Synergy Statement Vote in Place(2) Pmt. to P
Slide 9: FY 2020 Outlook
Net Sales $20.1 - $20.2 billion FY 2020 Outlook Adjusted $3.17 to $3.21 EPS(1) 3Q to 4Q 2020 Sequential Trends • Absence of E&I technology sale ($30M) • Normal seasonality driven by E&I (smartphones) and NA construction activity impacting sales and mix • Loss of earnings contribution from divestitur
Slide 10: Appendix
Appendix <OUPONT »
Slide 11: Core Segment Results – 3Q 2020
Core Segment Results – 3Q 2020 Operating Net Sales Operating EBITDA (Organic Change EBITDA Segment Highlights v. 3Q’19) (Change v. 3Q’19) Margin(1) (Change v. 3Q’19) Electronics & $1,004 million $357 million 35.6% • Semiconductor and smartphones drove top-line growth Imaging +8% +12% +130 bps • Prod
Slide 12: 4Q 2020 Financial Expectations
4Q 2020 Financial Expectations Electronics & Nutrition & Transportation Safety & Non-Core Segment Imaging Biosciences & Industrial Construction • Solid demand in • Continued strength in • Expecting global auto • Demand for Tyvek® • YOY sales declines of Key Semiconductor probiotics and home & builds
Slide 13: Additional Modeling Guidance – Full Year 2020
Additional Modeling Guidance – Full Year 2020 Below-the-line estimates: Items included in Operating EBITDA: Base Tax Rate ~21% - 23% R&D ~$900 million D&A(1) – Corporate Cost $150 million ~$3,100 million, pre tax Includes Merger-Related Amortization Merger-Related Amortization(1) ~$1,925 million, pr
Slide 14: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement Regarding Forward Looking Statements This communication contains "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
Slide 15: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement About Forward-Looking Statements, continued Non-GAAP Financial Measures: This presentation 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 measu
Slide 16: DuPont™, the DuPont Oval Logo, and all products, unless otherwise noted, denoted with ™,
© 2020 DuPont de Nemours, Inc. All rights reserved. © 2020 DuPont. All rights reserved. DuPont™, the DuPont Oval Logo, and all trademarks and service marks denoted with ™, ℠ or ® are owned by affiliates of DuPont de Nemours, Inc. unless otherwise noted. Nothing contained herein shall be construed as