Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q4 2022 Earnings Presentation
19 slides from Dupont De Nemours's earnings presentation, Feb 7, 2023
Slide 1: 4Q & FY 2022 Financial Results
4Q & FY 2022 Financial Results February 7, 2023
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation 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 measures. Management uses these measures internally for planning, forecasting and evaluating
Slide 3: Highlights
Highlights 4Q 2022 FY 2022 FY 2022 4Q Highlights Actuals Actuals Guide 5% top-line organic growth on continuation of strong pricing; fully offset cost inflation Net Sales $3.1 B $13.0 B ~$13.0 B Operating EBITDA margin improvement of 120 bps YoY; adjusted EPS growth of 16% Operating Strength i
Slide 4: Balance Sheet Flexibility To Drive Value Creation
Balance Sheet Flexibility To Drive Value Creation Adj. Net Debt / EBITDA(2) Financial Policy Highlights Strong balance sheet • Committed to a strong investment grade credit profile • $5.0B cash on hand 2.9x 2.3x at 12/31/22(3) Share repurchases 1.2x • $3.25B ASR underway; $2B of remaining authorizat
Slide 5: Focused on Five Growth Pillars
Focused on Five Growth Pillars Innovation-based growth aligned with key global macro themes Electronics Water Protection Industrial Next Generation Technologies Automotive 33% 12% 22% 20% 13% of net sales1 of net sales1 of net sales1 of net sales1 of net sales1 Consumer electronics Water filtratio
Slide 6: 4Q 2022 Financial Highlights
4Q 2022 Financial Highlights NET SALES ORGANIC OPERATING ADJUSTED CASH USED FOR $3.1 billion SALES EBITDA EPS OPERATIONS -4% +5% $758 million $0.89 / share $126 million › Price +7% - Pricing actions continue to offset inflation › Operating EBITDA up 1% from year-ago period despite related to raw mat
Slide 7: 4Q 2022 Adjusted EPS Bridge
4Q 2022 Adjusted EPS Bridge +16% Segment Results +$0.01 $0.89 $0.77 ₊ Pricing ₊ Share ₊ Interest income ₊ EGL/NCI/Depr(1) ₋ Tax rate repurchases and lower +0.05 ($0.06) ₊ Lower spending +$0.07 interest expense ₋ Inflation +$0.05 ₋ Portfolio ₋ Currency ₋ Volumes 4Q 2021 Segment Share Other Tax 4Q 202
Slide 8: FY 2022 Financial Highlights
FY 2022 Financial Highlights NET SALES ORGANIC OPERATING ADJUSTED CASH FROM $13.0 billion SALES EBITDA EPS OPERATIONS +4% +8% $3.26 billion $3.41 / share $588 million › Price +7% - Pricing actions offset inflation related to raw › Operating EBITDA up 3% from year-ago period driven materials, logisti
Slide 9: Electronics & Industrial
Electronics & Industrial 4Q Net Sales Vol (-5%), Price (+3%), Currency (-5%), Portfolio (-1%) -8% $1,467 $ in Millions $1,343 Organic Growth 4Q 2022 YoY Highlights -2% • Organic sales decline driven mainly by weaker consumer electronics demand • Interconnect Solutions (volume down LDD) due to channe
Slide 10: Water & Protection
Water & Protection 4Q Net Sales Vol (0%), Price (+12%), Currency (-6%), Portfolio (0%) +6% $ in Millions $1,497 $1,415 Organic Growth +12% 4Q 2022 YoY Highlights • Broad-based pricing actions to offset inflationary pressure, most notably in Shelter and Safety Solutions • Organic sales growth: Water
Slide 11: 1Q and FY 2023 Guidance
1Q and FY 2023 Guidance 1Q 2023 FY 2023 Key Assumptions Continued strength in water, auto adhesives and broad- based Industrial end-markets including aerospace and Net Sales ~ $2.9 billion $12.3 - $12.9 billion healthcare Lower volumes in 1H’23 in consumer electronics and Operating semiconductor
Slide 12: Appendix
Appendix <OUPONT » %
Slide 13: 4Q 2022 Net Sales Bridge
4Q 2022 Net Sales Bridge Organic Sales +5% Price +7% Volume -2% -4% -5% +12% -4% $3,246 +12% -2% $3,104 In Millions Divestitures of non- core businesses(1) Semiconductor Water (Corporate & Other) Technologies Solutions Strengthening of USD, primarily Industrial Safety against the JPY, Solutions Solu
Slide 14: FY 2022 Net Sales Bridge
FY 2022 Net Sales Bridge Organic Sales +8% Price +7% Volume +1% +10% +4% +11% -1% -3% $13,017 +5% $12,566 In Millions Acquisition of Laird Semiconductor Shelter Performance Materials Strengthening of Technologies Solutions (E&I) more than offset USD, primarily by divestitures of non- against the Eur
Slide 15: 2023 Segment Expectations
2023 Segment Expectations Electronics & Water & Segment Industrial Protection • Top-line expected to be down low-teens on organic • Top-line expected to be down low single-digits on Key Drivers basis in 1Q’23 vs. year-ago period resulting from organic basis in 1Q’23 vs. year-ago period as decreased
Slide 16: Additional Modeling Guidance – Full Year 2023
Additional Modeling Guidance – Full Year 2023 Below-the-line estimates Items included in Operating EBITDA Base Tax Rate 23-24% R&D ~$525 million D&A ~$1,125 million, pre-tax Corporate & Other: - Corporate expenses ~$130 million Intangible Amortization ~$590 million, pre-tax - Operating results of Re
Slide 17: Innovation Driving Growth in Strategic Focus Areas
Innovation Driving Growth in Strategic Focus Areas Water Protection Industrial Next-Generation Electronics Technologies Automotive • Launched Skyton™ UV • Increased demand in Asia • Expanded Tyvek® garments • Increased adoption of • MOLYKOTE® preferred curable conductive for FilmTec™ Fortilife™ recy
Slide 18: Overview
Overview On February 18, 2022, DuPont announced that it has entered into definitive agreements to divest a majority of its historical Mobility & Materials segment, excluding certain Advanced Solutions and Performance Resins businesses, to Celanese Corporation (“Celanese”), (the “M&M Divestiture”). O
Slide 19: DuPont™, the DuPont Oval Logo, and all products, unless otherwise noted, denoted with ™,
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