Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q3 2023 Earnings Presentation
21 slides from Dupont De Nemours's earnings presentation, Nov 1, 2023
Slide 1: 3Q 2023 Financial Results
3Q 2023 Financial Results November 1, 2023
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures: Unless otherwise indicated, all financial metrics presented and discussion of results reflect continuing operations only. This communication includes information that does not conform to accounting principles generally accepted in the United States of America (“U.S. GAAP
Slide 3: 3Q 2023 Highlights
3Q 2023 Highlights 10% top-line organic sales decline YoY driven by continued 3Q 2023 3Q 2023 volume pressure in semiconductor and construction end-markets, Actuals Guide along with channel inventory destocking Mid-single digit organic sales growth YoY in adhesives Net Sales $3.06 B ~$3.15 B C
Slide 4: Advancing Strategic Priorities
Advancing Strategic Priorities Completed acquisition of Spectrum(1) on August 1st o Aligned into Industrial Solutions line of business within E&I; results in-line with modeled assumptions Delrin® divestiture to close November 1; deal structure offers substantial current and future value opportun
Slide 5: 3Q 2023 Financial Highlights
3Q 2023 Financial Highlights NET SALES ORGANIC OPERATING ADJUSTED CASH FROM $3.1 billion SALES EBITDA EPS OPERATING ACT. -8% -10% $775 million $0.92 / share $740 million › Operating EBITDA down 9% year-over-year on volume › Volume -10%: declines in semiconductor and declines and the impact of reduce
Slide 6: 3Q 2023 Adjusted EPS Bridge
3Q 2023 Adjusted EPS Bridge Segment Results +12% ($0.12) $0.92 $0.82 ₋ Volume ₋ Electronics ₊ Share ₊ Interest ₊ EGL/NCI/Tax ₋ Construction repurchases income and Rate(1) lower interest +$0.06 ₋ Inventory destocking +$0.09 expense ₊ Adhesives +$0.07 ₋ Reduced production rates ₊ Lower input costs ₊ S
Slide 7: Electronics & Industrial
Electronics & Industrial 3Q Net Sales Vol (-12%), Price (-1%), Currency (0%), Portfolio (+4%) -9% $ in Millions $1,511 $1,368 Organic Growth 3Q 2023 YoY Highlights -13% • Organic sales driven primarily by volume decline: • Semiconductor Technologies down high-teens on an organic basis resulting from
Slide 8: Water & Protection
Water & Protection 3Q Net Sales Vol (-9%), Price (+1%), Currency (0%), Portfolio (0%) -8% $ in Millions $1,534 $1,413 Organic Growth- -8% 3Q 2023 YoY Highlights • Organic sales decline driven by lower volume • Organic sales by line of business: • Safety Solutions down high-single digits due to volum
Slide 9: FY 2023 Guidance
FY 2023 Guidance FY 2023 Key Assumptions ~$12.170 billion Underlying consumer electronics demand in Net Sales (Prior: $12.45 - $12.55 billion) 4Q’23 is generally similar as 3Q’23, with some sequential sales lift expected in Semiconductor Technologies ~$2.975 billion Operating EBITDA (Prior: $2.975
Slide 10: Appendix
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Slide 11: 3Q 2023 Net Sales Bridge
3Q 2023 Net Sales Bridge Organic Sales -10% Volume -10% Price Flat +2% Flat -13% -8% +1% -8% $3,317 $3,058 In Millions Semiconductor Safety Retained Spectrum acquisition(1) ₊ Euro Technologies Solutions Businesses (E&I) ₋ CNY ₋ JPY Interconnect Shelter Solutions Solutions Industrial Water Solutions
Slide 12: 2023 Segment Expectations
2023 Segment Expectations Electronics & Water & Segment Industrial Protection • Underlying consumer electronics demand in 4Q’23 • Inventory destocking within industrial-based end- Key Drivers expected to be generally similar as 3Q’23, with markets and weaker China water demand some sequential sales
Slide 13: Additional Modeling Guidance – Full Year 2023
Additional Modeling Guidance – Full Year 2023 Below-the-line estimates Items included in Operating EBITDA ~24% - 4Q’23 R&D ~$525 million Base Tax Rate ~24% - FY 2023 D&A ~$1,150 million, pre-tax Corporate & Other: Intangible Amortization ~$605 million, pre-tax - Corporate expenses ~$130 million Inte
Slide 14: Innovation Driving Growth in Strategic Focus Areas
Innovation Driving Growth in Strategic Focus Areas Water Industrial Next-Generation Electronics Protection Technologies Automotive • Success with major fabricators • Launched AmberLite™ • Introduced new Tychem® 6000 • Laird won multiple • Opened new Adhesives on new CMP pads for P2X110 ion exchange
Slide 15: Overview
Overview Beginning in the second quarter of 2023, the Company has segregated the cash flows from discontinued operations from the cash flows from continuing operations in accordance with ASC 230, Statement of Cash Flows. The interim Consolidated Statements of Cash Flows have been recast for all peri
Slide 16: Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures 16
Slide 17: Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures 17
Slide 18: Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures 18
Slide 19: Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures 19
Slide 20: Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures 20
Slide 21: DuPont trademarks and investor teach-in replays
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 © 2023 DuPont de Nemours, Inc. All rig