Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q3 2021 Earnings Presentation
25 slides from Dupont De Nemours's earnings presentation, Nov 2, 2021
Slide 1: Strategic Update & 3Q 2021 Earnings Conference Call
Strategic Update & 3Q 2021 Earnings Conference Call November 2, 2021
Slide 2: Key Messages
Key Messages ADVANCING ACTIONS TO FURTHER FOCUS STRONG 3Q 2021 FINANCIAL RESULTS PORTFOLIO IN SECULAR GROWTH END- MARKETS Capturing broad-based demand across all key Agreement to acquire Rogers Corporation(1) end markets; leading global supply chain is enhances our exposure to attractive secular hel
Slide 3: 3Q 2021 Financial Highlights
3Q 2021 Financial Highlights NET SALES ORGANIC OPERATING Adjusted 3Q 2021 Cash from $4.3 billion SALES(1) EBITDA(1) EPS(1) Operating Activities +18% +16% $1.09 billion $1.15 / share $842 million Net Sales of $4.3B Operating EBITDA margin(1) Free Cash Flow(1) Volume +10%, Price +6%, expansion of 50 b
Slide 4: 3Q 2021 Net Sales Bridge
3Q 2021 Net Sales Bridge Organic Sales(1) +16% +28% +12% +11% +9% +1% +1% $4,271 In Millions Engineering $3,629 Safety Solutions Polymers +18% Industrial Solutions Acquisition of Laird Weakening of USD, Advanced Performance Materials primarily against Shelter Solutions Solutions (E&I) more than Yuan
Slide 5: 3Q 2021 Adjusted EPS Bridge
3Q 2021 Adjusted EPS(1) Bridge Segment Results +$0.20 $0.48 $1.15 $0.61 › N&B exchange › Interest +$0.05 offer and share › Base tax rate & other repurchases -$0.04 +$0.33 3Q 2020 Volume Portfolio(2) Share Other 3Q 2021 Adjusted EPS(1) Count Below the Line Adjusted EPS(1) Pricing actions offset impac
Slide 6: FY 2021 Guidance
FY 2021 Guidance Revised Previous FY 2021 FY 2021 Guidance(2) Guidance(2) Net Sales $16.34 - $16.40 billion $16.45 - $16.55 billion Operating $4.14 - $4.17 billion $4.21 - $4.26 billion EBITDA(1) Adjusted $4.18 to $4.22 $4.24 to $4.30 EPS(1) › Strong underlying demand in almost all end-markets expec
Slide 7: Positioning DuPont for the Future
Positioning DuPont for the Future Rogers Corporation is an outstanding company with leadership positions in select high- Combination of performance products in Advanced Mobility and actions….. Advanced Connectivity ROGERS Differentiated portfolio with excellent innovation Enhances stability and pred
Slide 8: Combined Actions Make DuPont a Faster Growing, More Profitable Company With Stable Earnings Growth
Combined Actions Make DuPont a Faster Growing, More Profitable Company With Stable Earnings Growth 3.4% 3.8% Organic +40 Growth(2) BPS 2.0% STRONGER GROWTH: ‘16 – ’21 (est) +40 BPS IN SALES CAGR DuPont Sales CAGR (before Rogers acquisition & M&M divestiture) DuPont (post Rogers acquisition assuming
Slide 9: Focused Multi-Year Transformation Strategy
Focused Multi-Year Transformation Strategy PORTFOLIO OPTIMIZATION OPERATIONAL EXCELLENCE • Separated Nutrition & Biosciences in RMT • Decentralized, market focused structure Separations/ transaction with IFF • Accountability for manufacturing, Performance- Divestitures • Divestiture of ~$2.0B(1) of
Slide 10: DuPont's Intended Acquisition of Rogers Corporation
DuPont’s Intended Acquisition of Rogers Corporation(1) Transaction Summary ~$5.2 billion purchase price; ~19x 2022E EBITDA (~14x with cost synergies) Terms Projecting 2022 EBITDA of ~$270 million ~$115 million pre-tax run-rate cost synergies by end of 2023 Forecasted Majority of cost synergies reali
Slide 11: Significant Cost Synergy Opportunity
Significant Cost Synergy Opportunity Public Company Costs $115 G&A / Functional Cost Optimization Million Est. Rogers Cost Procurement Savings Synergies by YE 2023 Footprint Optimization / Operational Improvements Highly confident in our ability to generate value through compounding cost synergies f
Slide 12: Overview of Rogers Corporation
Overview of Rogers Corporation(1) Broad Market Exposure Operating in Two Segments Rogers End-Market Exposure(3) Advanced Electronic Solutions (~60%) Specialty laminates for high-frequency circuits e.g., 5G, ADAS, Wireless Infra. ADAS Defense Electronics 10% 9% Metallized ceramic substrates for extre
Slide 13: Combination Expands Technology / Product Offerings
Combination Expands Technology / Product Offerings Positions DuPont as a critical technology Complements DuPont’s industry leading partner for OEMs and Tier 1 electronics and position in materials for smart phones with battery manufacturers for next gen vehicles cutting edge solutions for 5G infrast
Slide 14: Combination Expands DuPont E&I Addressable Market to 1.5x
Combination Expands DuPont E&I Addressable Market to 1.5x DuPont Electronics and Industrial Key Served Markets Total Addressable Market ($B) High Perf. Computing • Leading positions in high-value specialty Semiconductor materials and components for diverse end- 5G Communication Technologies markets,
Slide 15: Mobility & Materials Planned Divestiture of In-Scope Businesses
Mobility & Materials Planned Divestiture of In-Scope Businesses(1) Longstanding and category-defining market leader in high-performance engineering thermoplastics and advanced solutions for the transportation, electronics, industrial, consumer and renewable energy end-markets • Family of nylon produ
Slide 16: Transactions Unlock Substantial Value for DuPont Shareholders
Transactions Unlock Substantial Value for DuPont Shareholders Key Drivers of Value Creation Planned transactions(1)(2) significantly advance DuPont’s transformation into a Significant Synergy Creation Best-in-Class Financial Profile best-in-class multi-industrial company Significant cost synergies f
Slide 17: Appendix
Appendix <OUPONT » %
Slide 18: End-Market Exposures
ibdroot\projects\IBD-NY\detusk2021\683386_1\12. IR Materials from Client\IR Deck\Peer Multiples Page_v01.pptx End-Market Exposures Following Intended Acquisition of Rogers(1) and Mobility & Materials Divestiture(2) Water ~10% Electronics ~33% Next-Gen Auto ~13% Protection ~20% Industrial Tech. ~24%
Slide 19: Segment Results – 3Q 2021
Segment Results – 3Q 2021 Operating Net Sales Operating EBITDA (Organic Change EBITDA Segment Highlights v. 3Q’20) (Change v. 3Q’20) Margin(1) (Change v. 3Q’20) • Double-digit volume growth in Industrial Solutions and Semiconductor Technologies; Interconnect Solutions negatively Electronics & $1,467
Slide 20: 4Q 2021 End-Market Expectations
4Q 2021 End-Market Expectations Segment Electronics & Water & Mobility & Industrial Protection Materials • Continued robust demand for • North America residential Key semiconductors materials construction & retail DIY • Semiconductor chip shortage demand remains strong; delaying auto build productio
Slide 21: Additional Modeling Guidance – Full Year 2021
Additional Modeling Guidance – Full Year 2021 Below-the-line estimates: Items included in Operating EBITDA: Base Tax Rate ~21% R&D ~$600 - $650 million Corporate costs (1) D&A ~$1,400 million, pre tax (excludes Op. EBITDA ~$135 million from non-core businesses) Intangible Amortization ~$720 million,
Slide 22: Upcoming Events
Upcoming Wednesday, November 17, 2021 Events • Interconnect Solutions (E&I) Teach-In 22
Slide 23: Safe Harbor Statement
Safe Harbor Statement Overview Effective August 31, 2017, E. I. du Pont de Nemours and Company ("EID") and The Dow Chemical Company ("TDCC") each merged with subsidiaries of DowDuPont Inc. (n/k/a "DuPont”) and, as a result, EID and TDCC became subsidiaries of the Company (the "DWDP Merger"). On Apri
Slide 24: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement About Forward-Looking Statements, continued Non-GAAP Financial Measures: This earnings release 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 m
Slide 25: DuPont trademarks and copyright notice
© 2021 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