Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — DowDuPont — Q4 2017 Earnings Presentation
18 slides from Dupont De Nemours's earnings presentation, Feb 1, 2018
Slide 1: DowDuPont 4Q17 Earnings Conference Call
DowDuPont 4Q17 Earnings Conference Call February 1, 2018
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 Forward-looking statements by their nature address matters that are, to different degrees, uncertain, including the intended separation of DowDuPont’s agriculture, materials science and specialty products businesses in one or mor
Slide 4: 4Q17 and Full-Year Summary
4Q17 and Full-Year Summary • Delivered strong 4Q17 results – Sales increased 13% – Volume rose 6%, well ahead of global GDP – Operating EBITDA grew 24% – Adjusted EPS increased 41% • Sales growth in every operating segment and geography • Robust full-year¹ growth on a pro forma basis – Sales increas
Slide 5: Anticipated Timeline to Expected Spins
Anticipated Timeline to Expected Spins MatCo AgCo Spin Spin 1Q18 3Q18 1Q19 • Finalize assets and liabilities • Forms 10 by spin • File initial Forms 10 • Complete equity roadshows • Finalize agreement terms • Begin to deploy IT systems • Complete IT systems and 3Q19 • Complete IT design and test and
Slide 6: 4Q 2017 Financial Highlights
4Q 2017 Financial Highlights1 Financial Performance Snapshot 4Q17 4Q16 B/(W) Net Sales ($MM) 20,066 17,734 2,332 Operating EBITDA ($MM) 3,938 3,185 753 GAAP EPS from Continuing Operations ($/share) (0.52) (0.03) (0.49) Adjusted EPS ($/share) 0.83 0.59 0.24 4Q 2017 Pro Forma Adjusted EPS Variance Hig
Slide 7: Agriculture: 4Q 2017 and FY 2017 Highlights
Agriculture: 4Q 2017 and FY 2017 Highlights1 Fourth Quarter • Seed sales of $1.2 billion grew 10% driven by portfolio-related actions, volume 4Q17 4Q16 improvement, mainly in EMEA and Argentina, and pricing gains Net Sales ($MM) 2,787 2,664 • Crop Protection sales of $1.6 billion grew 1% driven by i
Slide 8: Materials Science: 4Q 2017 Highlights
Materials Science: 4Q 2017 Highlights1 Performance Materials & Coatings 4Q17 4Q16 • Consumer Solutions delivered double-digit sales growth in all geographic regions; price Net Sales ($MM) 2,203 1,922 gains, disciplined margin mgmt drove improvement in upstream silicone intermediates Op. EBITDA ($MM)
Slide 9: Specialty Products: 4Q 2017 Highlights
Specialty Products: 4Q 2017 Highlights1 Electronics & Imaging 4Q17 4Q16 • Continued strong demand across key end markets on double-digit volume gains in Net Sales ($MM) 1,192 1,182 consumer electronics, industrial and semiconductors; partially offset by declines in PV Op. EBITDA ($MM) 367 331 • Op.
Slide 10: 1Q18 Modeling Guidance
1Q18 Modeling Guidance Refer to slide 18 in Appendix for additional commentary on segment outlook Net Sales: $20.5 - $21.3B up ~2% Op. EBITDA: $4.6 - $4.8B up ~2% Net Sales (excl. Ag) up ~8% Op. EBITDA (excl. Ag) up ~13% Segment Outlook 1Q18 vs. 1Q171 Net Sales Op. EBITDA (incl. Equity Earni
Slide 11: FY18 Modeling Guidance
FY18 Modeling Guidance Refer to slide 18 in Appendix for additional commentary on segment outlook Full-year sales up mid-single digits percent Full-year EPS up mid- to high-teens percent Segment Outlook FY18 vs. FY171 Net Sales Op. EBITDA (incl. Equity Earnings) Agriculture Up mid-single digit
Slide 12: Sadara – A Powerful Foundation for Growth
Sadara – A Powerful Foundation for Growth Close proximity to high-growth Financial Impacts to Materials Science Division emerging regions • Product marketing added ~$1.4B of revenue Diluted overall EBITDA margin by ~150 bps Powerful feedstock and 2017 • Equity losses ($452MM) were $65MM fav Yo
Slide 13: Year-in-Review
Year-in-Review Segment Outlook 4Q17 vs. 4Q16 Net Sales Op. EBITDA 1. Portfolios realigned – just 12 days after merger close (incl. Equity Earnings) Agriculture Up ~10% ~$225MM Performance Materials & Coatings Up high-single-digits percent 2. Completed all remedy actions required to closeUpmergermid-
Slide 14: Comprehensive Growth Investments
Comprehensive Growth Investments • Launched Enlist™ cotton in U.S. in 2017; Enlist™ corn in NA for 2018 season Agriculture • Acquired Granular, enhancing digital solutions for customers • Expect to launch 21 new products in the next 5 years Sadara • Full commercial operations achieved; produced >4B
Slide 15: Outlook
Outlook Macro Outlook • Global economic expansion gaining momentum – particular strength in developed economies – Consumer and business confidence; employment/wage growth; manufacturing and infrastructure investment activity – Early signs point to U.S. tax reform as catalyst for capital investments
Slide 16: Priorities Going Forward
Priorities Going Forward Deliver operating and financial plan • Continued focus on earnings, margin and volume growth 1 • Deliver growth projects, launch innovations and focus on manufacturing excellence Achieve synergy commitments 2 • Achieve enhanced $3.3 billion cost synergy run-rate in 3Q19 • Ad
Slide 17: Slide 17
Slide 18: 1Q18 Segment Expectations
1Q18 Segment Expectations Refer in conjunction with Slide 10 Segments Key Sales and Operating EBITDA Outlook Drivers (1Q18 vs. 1Q17 1) Full year sales expected to be up mid-single digits percent and full year operating EBITDA expected to be up high-teens percent driven by new product introductions,