Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Merger or Acquisition (December 2019)
25 slides from Dupont De Nemours's merger presentation, Dec 16, 2019
Slide 1: IFF to Combine with DuPont Nutrition & Biosciences
I F F TO C O M B I N E W I T H DUPONT NUTRITION & BIOSCIENCES Creates New Global Integrated Solutions Leader December 16, 2019
Slide 2: Cautionary Note on Forward-Looking Statements
C A U T I O N A RY S TAT E M E N T Cautionary Note on Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended
Slide 3: Cautionary Statement (continued)
C A U T I O N A RY S TAT E M E N T (24) the impact of the failure to comply with U.S. or foreign anti-corruption and anti-bribery laws and regulations, including with respect to IFF’s ongoing investigations into improper payments made in Frutarom businesses principally operating in Russia and the Uk
Slide 4: Additional Information and Where to Find It
C A U T I O N A RY S TAT E M E N T Additional Information and Where to Find It This communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor
Slide 5: Transaction Summary: Key takeaways
T R A N S A C T I O N S U M M A RY Key takeaways • IFF and DuPont Nutrition and Biosciences unit (N&B) to combine in a Reverse Morris Trust transaction valued at $26.2B(1) Structure • Transaction value represents a multiple of ~18x 2019 estimated pro-forma EBITDA excluding synergies and a multiple o
Slide 6: A Powerful Combination
A P O W E R F U L C O M B I N AT I O N Redefining the value-add ingredients industry Combined Company IFF DuPont N&B • A global leader in taste and scent Broader • Leading value-added ingredients and Set of Ingredients and Solutions solutions provider • Leading Natural capabilities Deeper • #1 or 2
Slide 7: Industry Leading Financial Profile
I N D U S T RY L E A D I N G F I N A N C I A L P R O F I L E Strong platform for enhanced growth and margin expansion RANKING OF PEERS BY 2018 REVENUE (PRE-SYNERGIES) 11 In USD Billions 7 6 6 4 (1) IFF + N&B Peer 1 Peer 2 Peer 3 (2) Peer 4 RANKING OF PEERS BY 2018 EBITDA MARGIN Includes ~$300m of co
Slide 8: Transaction Benefits All Stakeholders
T R A N S A C T I O N B E N E F I T S A L L S TA K E H O L D E R S Strong Corporate Competitive Governance and thorough • Andreas Fibig to serve as Chairman & CEO process leading • Balanced board with equal to the selection Significant value composition from IFF and DuPont; Breen as Lead of IFF crea
Slide 9: DuPont N&B Snapshot
DUPONT N&B SNAPSHOT Leader in Food Science and Biotechnology Strong Financial Profile Diversified Revenue by Geography (2018A) ~$6B ~24% 30% 37% 2019 Estimated 2019 Estimated Operating EBITDA 23% Sales(1) Margin(1)(2) 10% #1 across active Food & Beverage segments #1 in Probiotics Global Scale 10,000
Slide 10: DuPont N&B Business Overview
D U P O N T N & B B U S I N E S S O V E RV I E W Innovation-driven portfolio of high-value, specialty ingredient businesses Nutrition & Biosciences Portfolio Health & Biosciences Food & Beverage Pharma Solutions 39% 48% 13% Business World-leading bioscience innovator serving Broadest portfolio of na
Slide 11: IFF Snapshot
IFF SNAPSHOT Global leader in natural taste, scent and nutrition Strong Financial Profile Diversified Revenue by Geography (2018A) ~$5B ~22% 41% 23% 2019 Estimated 2019 Estimated Sales EBITDA Margin 22% 14% #2 Flavors and Fragrances player Global Scale 8% 60% ~20% 39,000+ 110+ annual R&D spend as sa
Slide 12: IFF Business Overview
I F F B U S I N E S S O V E RV I E W Global leader in natural taste, scent and nutrition IFF Portfolio Scent Taste Nutrition & Ingredients 37% 57% 6% Business Range of natural & synthetic fragrance Range of flavor compounds and natural Suite of natural product offerings Overview compounds & ingredie
Slide 13: Redefining the Industry Together
R E D E F I N I N G T H E I N D U S T RY TO G E T H E R Leading positions in Food & Beverage, Home & Personal Care, Health & Wellness A clear Shared Compelling Powerful Strength in leader focus value R&D shared in the categories on consumer- proposition platform cultures where we oriented end- to cu
Slide 14: Leader Across Attractive Markets
L E A D E R A C R O S S AT T R A C T I V E M A R K E T S Breadth of capability & exposure establishes strong competitive position Category Leader Position IFF + Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 ✔ Participates in the category DuPont N&B Functional Solutions(1) ✔ ✔ Food & Beverage Emulsifiers
Slide 15: Highly Compelling Position with Customers
H I G H LY C O M P E L L I N G P O S I T I O N W I T H C U S TO M E R S Clear path to become a partner of choice Strong Representation Across All Customer Sets Customer Type Global Multinational New & Emerging Brands; Regional Leaders Champions Private Label • Industry-leading innovation • In-depth
Slide 16: Technology & Innovation
T E C H N O L O G Y & I N N O VAT I O N Expanded capabilities through R&D and innovation platforms Focused Technology & Innovation Platforms Demand Across Shared End Markets NATURALS & BEYOND DELIVERY SYSTEMS MODULATION 50+ Research, Creative & Application Centers 30+ Human Clinical Trials In Flight
Slide 17: Differentiated Solutions: A Clear Advantage
D I F F E R E N T I AT E D S O L U T I O N S : A C L E A R A D VA N TA G E Complementary capabilities and expertise in shared end-markets Demand Across Shared End-Markets Illustrative Product Examples IFF Product Offering DuPont N&B Product Offering Food & Texturants (Mouth feel) Beverage Binders (“
Slide 18: A New Global Leader
A NEW GLOBAL LEADER Differentiated product portfolio and balanced geographic footprint PRO FORMA PORTFOLIO – 2018A SALES PRO FORMA GEOGRAPHIC SPLIT – 2018A SALES Nutrition Food & Greater Taste 3% Beverage Asia 26% 22% EMEA 26% 35% 2018 Pro Sales Forma Latin 13% 7% America 17% Pharma Scent Solutions
Slide 19: Significant Synergy Opportunities
SIGNIFICANT SYNERGY OPPORTUNITIES Combination provides strong value creation Cost Synergies Revenue Synergies LEVERAGE DIRECT TO CONSUMER MANUFACTURING DISTRIBUTION MODEL ~10% EFFICIENCIES ~10% ACCELERATE DUPONT N&B SOLUTIONS WITH TASTE ~25% STREAMLINING OVERHEAD ~40% LEVERAGE IFF CUSTOMER BASE FOR
Slide 20: Pro Forma Capital Structure
P R O F O R M A C A P I TA L S T R U C T U R E • Pro forma leverage of • Commitment to maintaining approximately 4.0x net investment grade credit debt / adjusted EBITDA at rating close • Targeting deleveraging • Commitment to current <3.0x by year two post- dividend policy transaction close 20
Slide 21: Long-Term Outlook: Financial Targets
LONG-TERM OUTLOOK Compelling upside driven by base plans and synergies 1 Mid single-digit topline growth Financial Targets 2 Significant margin enhancement 3 High single-digit EBITDA growth 4 Highly cash generative business 21
Slide 22: IFF & DuPont N&B Integration
I F F & D U P O N T N & B I N T E G R AT I O N Shared experience in integration execution with ample time for planning S H A R E D C U LT U R E A N D TIMING ALIGNMENT WITH F O C U S O N I N T E G R AT I O N F R U TA R O M I N T E G R AT I O N H1 2020: Q3 2020: Q4 2020: Disciplined process-oriented c
Slide 23: A Powerful Combination
A P O W E R F U L C O M B I N AT I O N Redefining the value-add ingredients industry Combined Company IFF DuPont N&B • A global leader in taste and scent Broader • Leading value-added ingredients and Set of Ingredients and Solutions solutions provider • Leading Natural capabilities Deeper • #1 or 2
Slide 24: IFF to Combine with DuPont Nutrition & Biosciences
IFF TO COMBINE WITH DUPONT NUTRITION & BIOSCIENCES Creates New Global Integrated Solutions Leader December 16, 2019
Slide 25: Appendix: DuPont FY2019 Guidance
APPENDIX: DUPONT FY2019 GUIDANCE REAFFIRMS FY19E PRO FORMA ADJUSTED EPS* OF $3.77 TO $3.82 Comments ➢ Macro-related weakness includes $0.39 ($0.49) $4.05 impact of demand-driven softness, 2018 primarily in the T&I segment, as Discrete Items(1) ($0.17) $0.02 $3.80 well as higher costs on lower 2019 p
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