Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q3 2022 Earnings Presentation
17 slides from Dupont De Nemours's earnings presentation, Nov 8, 2022
Slide 1: 3Q 2022 Financial Results
3Q 2022 Financial Results November 8, 2022
Slide 2: Non-GAAP Financial Measures
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 measures. Management uses these measures internally for planning, forecasting and evaluating
Slide 3: 3Q 2022 Highlights
11% top-line Strong customer organic growth; demand across strong pricing and most key end- better-than-expected markets 3Q 2022 volume Highlights Continue to fully Operating EBITDA offset raw material, margin logistics and energy improvement year- cost inflation with over-year of 30 bps pricing act
Slide 4: Key Transformation Initiatives Update
Key Transformation Initiatives Update Portfolio Transformation Largely Complete M&M divestiture(1) completed o Sale to Celanese closed on November 1, somewhat earlier than previously anticipated o Gross cash received of $11 billion Targeting Delrin® closing in 2023 o Exercising patience on proce
Slide 5: Capital Allocation Update
Capital Allocation Update DuPont’s balanced allocation strategy prioritizes return of substantial excess capital to shareholders while maintaining financial flexibility and opportunistic approach to disciplined bolt-on M&A Substantial share repurchase authorized o Board authorized new $5.0 billion
Slide 6: 3Q 2022 Financial Highlights
3Q 2022 Financial Highlights NET SALES ORGANIC OPERATING Adjusted Cash from $3.3 billion SALES EBITDA EPS Operations +4% +11% $856 million $0.82 / share $419 million › Price (+8%), Volume (+3%), Currency (-4%), › Operating EBITDA up 5% from year-ago period driven by volume gains Portfolio (-3%) › Op
Slide 7: 3Q 2022 Adjusted EPS Bridge
3Q 2022 Adjusted EPS Bridge Segment Results +$0.06 +4% $0.82 $0.79 › Driven by › Non-core Semiconductor divestitures › Share › Tax rate – › Interest/EGL/NCI – Technologies (Corp & Other) repurchases ($0.03) ($0.04) (E&I), Water and +$0.04 Solutions strengthening (W&P) and of USD Industrial Solutions
Slide 8: Electronics & Industrial
Electronics & Industrial 3Q Net Sales Vol (+4%), Price (+3%), Currency (-4%), Portfolio (0%) +3% $ in Millions $1,511 $1,467 Organic Growth +7% 3Q 2022 Highlights • Organic sales growth led by Semiconductor Technologies (up mid-teens) and Industrial Solutions (up high single-digits) • Interconnect S
Slide 9: Water & Protection
Water & Protection 3Q Net Sales Vol (+2%), Price (+13%), Currency (-5%), Portfolio (0%) +10% $ in Millions $1,397 $1,534 Organic Growth +15% 3Q 2022 Highlights • Broad-based pricing actions to offset inflationary pressure, most notably in Shelter and Safety Solutions 3Q Operating EBITDA • Net Sales:
Slide 10: FY 2022 Guidance
FY 2022 Guidance Revised Previous Previous Key Assumptions FY 2022 FY2022 FY 2022 Guidance Expect solid demand to continue in most key end- Guidance Guidance markets and offerings, most notably water, industrial technologies and auto adhesives Net Sales ~ $13.0 billion $13.0 - $13.4 billion FY’2
Slide 11: Appendix
Appendix <OUPONT » %
Slide 12: 3Q 2022 Net Sales Bridge
3Q 2022 Net Sales Bridge Organic Sales +11% Price +8% Volume +3% +15% +4% +15% -3% -4% +7% $3,317 In Millions $3,199 Divestiture of non-core Semiconductor Shelter businesses Technologies Solutions (Corporate & Other) Strengthening of USD, primarily against the Euro, Industrial Water JPY and CNY Solu
Slide 13: 4Q 2022 Segment Expectations
4Q 2022 Segment Expectations Electronics & Water & Segment Industrial Protection • Top-line expected to be down mid to high-single • Top-line expected to be up mid-single digits as Key Drivers digits vs. 4Q’21 due to currency headwinds; pricing actions implemented to offset inflation are organic gro
Slide 14: Additional Modeling Guidance – Full Year 2022
Additional Modeling Guidance – Full Year 2022 Below-the-line estimates Items included in Operating EBITDA Base Tax Rate ~24% (vs. previous 21-23%) R&D ~$550 million Corporate & Other: D&A ~$1,150 million, pre-tax - Corporate expenses ~$125 million Intangible Amortization ~$600 million, pre-tax - Str
Slide 15: Innovation Driving Growth in Strategic Focus Areas
Innovation Driving Growth in Strategic Focus Areas Water Protection Industrial Next-Gen Electronics Technologies Automotive • Launched multiple • Increased adoption of • Increased adoption of • Increased adoptions • Launched BETASEAL™ Laird Performance FilmTec™ Prime RO Tyvek® protective of LIVEO™ p
Slide 16: Cautionary Statement Statement about Forward-looking Statements
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 17: DuPont™, the DuPont Oval Logo, and all products, unless otherwise noted, denoted with ™,
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 © 2022 DuPont de Nemours, Inc. All rig