Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q3 2019 Earnings Presentation
18 slides from Dupont De Nemours's earnings presentation, Oct 31, 2019
Slide 1: DuPont 3Q 2019 Earnings Conference Call
DuPont 3Q 2019 Earnings Conference Call October 31, 2019
Slide 2: Third Quarter Highlights
Third Quarter Highlights OFFSETTING MACRO WEAKNESS WITH PRICE & COST DISCIPLINE OPERATING ORGANIC OPERATING NET SALES EBITDA ADJUSTED EPS(1) SALES(1) EBITDA(1) -5% MARGIN(2) +2% -2% -4% +20 bps Net Sales of $5.4B 7th Consecutive Quarter of Positive Adjusted EPS(1) of $0.96 versus $0.94 in Portfolio
Slide 3: 3Q 2019 Net Sales Bridge
3Q 2019 Net Sales Bridge ------------------- Organic Sales Change --------------- Natural Colors $5,683 (N&B) Strengthening of Interconnect Food & USD, primarily Solutions Beverage EU Styrofoam vs. Euro in Millions (S&C) Mobility Safety Solutions Semiconductor Pharma Clean Solutions Solutions Techno
Slide 4: 3Q 2019 Adjusted EPS Bridge
3Q 2019 Adjusted EPS(1) Bridge $0.03 ($0.03) 3% lower share count $0.04 due to repurchases $0.96 $0.94 Strengthening of USD, ($0.02) under DowDuPont and primarily vs. Euro DuPont plans ($0.06) Pricing gains Lower amortization $0.04 and absence of Synergies & cost control depreciation from +2% Asset
Slide 5: FY 2019 Outlook
FY 2019 Outlook Current Prior Summary of Update Guidance Guidance • Organic growth guidance Net Sales unchanged YOY Organic Slightly Down Slightly • Greater than anticipated Growth(2) (Reaffirmed) Down FY2019E currency headwinds expected to lower reported Net Sales Adjusted $3.77 $3.75 • Range narro
Slide 6: Electronics & Imaging
Electronics & Imaging 3Q Net Sales Vol 0%, Local Price -1%, Currency 0%, Portfolio 0% 940 $ in Millions 934 3Q 2019 Highlights 3Q Operating EBITDA • Strong volume gains in Interconnect Solutions, driven by higher content in 400 next-generation premium smartphones, offset by softer volumes in Advance
Slide 7: Nutrition & Biosciences
Nutrition & Biosciences 3Q Net Sales Vol 1%, Local Price 1%, Currency -2%, Portfolio -1% $ in Millions 1,533 1,525 3Q 2019 Highlights • Volume gains in Food & Beverage and Pharma Solutions as well as pricing gains in Pharma Solutions led to the second consecutive quarter of accelerating 3Q Operating
Slide 8: Transportation & Industrial
Transportation & Industrial 3Q Net Sales Vol -11%, Local Price 1%, Currency -1%, Portfolio 0% 1,357 $ in Millions 1,209 3Q 2019 Highlights 3Q Operating EBITDA • Volumes declined 11 percent due to lower auto builds, weak electronics demand 400 33% and continued destocking in the automotive channel. B
Slide 9: Safety & Construction
Safety & Construction 3Q Net Sales Vol -1%, Local Price 3%, Currency -1%, Portfolio -4% $ in Millions 1,364 1,327 3Q 2019 Highlights 3Q Operating EBITDA • Local price increased across all businesses and in all regions, led by the Safety and 400 Water Solutions businesses. 33% 320 352 • Volume gains
Slide 10: Balance Sheet and ROIC
Balance Sheet and ROIC Balance Sheet › $15.5 billion net debt at September 30, 2019 › Excludes $1.0B unfunded pension liability (non-US) › Expect to reduce commercial paper balances by year-end › Expected uses of cash for 4Q 2019 (DWDP transaction-related) › Transaction and restructuring costs ~ $0.
Slide 11: Portfolio Management Driving Value Creation
Portfolio Management Driving Value Creation Completed two divestments › Natural Colors business in N&B – 2Q19 enabling margin improvement › Sustainable Solutions business in Non-Core – 3Q19 Announced sale of E&I Silicon › $450 million sale price Carbide business(1) › Business not material to Electro
Slide 12: PFAS and Chemours Litigation Update
PFAS and Chemours Litigation Update PFAS Chemours Lawsuit • Historical DuPont and Chemours never • Implication that historical DuPont did not made or sold PFOS or AFFF. intend for the liabilities to be uncapped is refutable in number of ways. For example: • PFOS is the primary focus of AFFF • Materi
Slide 13: Appendix
Appendix
Slide 14: FY 2019E Segment Guidance
FY 2019E Segment Guidance Net Sales are expected to be down low-single digits versus the prior year on both an as reported and on an organic basis. Electronics & Operating EBITDA is expected to be down low-single digits as lower volumes, softer pricing and a currency headwind more than offset benefi
Slide 15: Additional Modeling Guidance – FY 2019
Additional Modeling Guidance – FY 2019 Additional Modeling Guidance – FY19E Reported Net Sales ~$21.5 billion Base Tax Rate 20% - 22% (vs. 17% for 2018) Share count – diluted ~747 million D&A – Includes Merger-Related Amortization ~$2,025 million, pre tax Merger-Related Amortization ~$800 million, p
Slide 16: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement Regarding Forward Looking Statements This communication contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act
Slide 17: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement About Forward-Looking Statements, continued Unaudited Pro Forma Financial Information: The unaudited pro forma financial information (the “pro forma financial statements”) is derived from DuPont’s interim Consolidated Financial Statements and accompanying n
Slide 18: Trademarks and copyright notice
© 2019 DuPont de Nemours, Inc. All rights reserved. © 2019 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