Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q2 2019 Earnings Presentation
17 slides from Dupont De Nemours's earnings presentation, Aug 1, 2019
Slide 1: DuPont 2Q 2019 Earnings Conference Call
DuPont 2Q 2019 Earnings Conference Call August 1, 2019
Slide 2: 2Q 2019 Financial Highlights
2Q 2019 Financial Highlights Financial Performance Snapshot Key Factors 2Q19 2Q18 B / (W) As Reported Pro Forma • Organic net sales change of (3%) o U.S. & Canada – (2%) Net Sales ($M) 5,468 5,857 (389) (7%) o EMEA – (3%) Operating EBITDA(1) ($M) 1,422 1,422 0 Flat o Asia Pacific – (4%) o Latin Amer
Slide 3: 2Q 2019 Financial Highlights, continued
2Q 2019 Financial Highlights, continued Adjusted Earnings Per Share(1) (EPS) Variance $0.02 $(0.01) $0.03 $0.04 $0.00 $0.97 $0.89 +9% 2Q ‘18 Pro Segment D&A Share Tax NCI 2Q ‘19 Forma Results Count Adjusted Adjusted EPS(1) EPS(1) Key Factors • EBITDA improvement in S&C, N&B, and Corporate offset by
Slide 4: 3Q and FY 2019 Outlook
3Q and FY 2019 Outlook Previous Current 3Q 2019E FY 2019E FY 2019E Net Sales Down YOY Organic Up 2-3% Slightly Down Low-Single Digits Growth Adjusted $0.94 - $0.99 $3.70 - $3.85 $3.75 - $3.85 EPS(1) 4 (1) Adjusted EPS (3Q 2019E) and pro forma adjusted EPS (FY 2019E) are non-GAAP measures. See page 1
Slide 5: 2Q 2019 Segment Results
2Q 2019 Segment Results Electronics & Nutrition & Transportation Safety & Imaging Biosciences & Industrial Construction Non-Core Net Sales $858 million $1,558 million $1,269 million $1,341 million $442 million Organic Growth (5%) YOY Flat YOY (7%) YOY 5% YOY (14%) YOY Operating EBITDA Margin 28.7% 2
Slide 6: Electronics & Imaging
Electronics & Imaging 2Q Net Sales Vol -5%, Local Price 0%, Currency -2%, Portfolio 0% 921 $ in Millions 858 2Q18 Volume Local Price Currency Portfolio 2Q19 2Q 2019 Highlights 2Q Operating EBITDA • Volume gains in Display Technologies were more than offset by softer volumes in 400 Semiconductor Tech
Slide 7: Nutrition & Biosciences
Nutrition & Biosciences 2Q Net Sales Vol -1%, Local Price 1%, Currency -3%, Portfolio -1% 1,621 $ in Millions 1,558 2Q18 Volume Local Price Currency Portfolio 2Q19 2Q 2019 Highlights • Volume gains in Health & Biosciences were more than offset by softer volumes in Food & Beverage and Pharma Solution
Slide 8: Transportation & Industrial
Transportation & Industrial 2Q Net Sales Vol -12%, Local Price 5%, Currency -3%, Portfolio 0% 1,417 $ in Millions 1,269 2Q18 Volume Local Price Currency Portfolio 2Q19 2Q 2019 Highlights 2Q Operating EBITDA • Volume declined 12 percent due to lower autobuilds versus the year-ago period, weak electro
Slide 9: Safety & Construction
Safety & Construction 2Q Net Sales Vol 1%, Local Price 4%, Currency -3%, Portfolio -4% 1,372 $ in Millions 1,341 2Q18 Volume Local Price Currency Portfolio 2Q19 2Q 2019 Highlights 2Q Operating EBITDA • Local price increased across all businesses and in all regions, led by Safety and Water 400 Soluti
Slide 10: Balance Sheet and ROIC
Balance Sheet and ROIC Balance Sheet › $15.6 billion net debt at June 30, 2019 › Excludes $1.0B unfunded pension liability › Expected uses of cash for 2H 2019 (transaction-related) › Transaction and restructuring costs ~ $0.3B › Pension funding (Switzerland) ~ $0.2B › CapEx ~$0.2B Cash and Debt Leve
Slide 11: 2019 Priorities Focused On Shareholder Value Creation
2019 Priorities Focused On Shareholder Value Creation › 8th consecutive quarter of pricing gains mitigates impact of softer volumes Drive top line growth through innovation and pricing discipline › New products accelerating growth in automotive electrification, healthcare, 5G, clean water and sustai
Slide 12: Appendix
Appendix
Slide 13: 3Q and FY 2019E Segment Guidance
3Q and FY 2019E Segment Guidance 3Q Net Sales expected to be flat versus the prior year on an as reported basis and up low-single digits on an organic basis on improved volumes partially offset by lower price. 3Q operating EBITDA is expected to be flat as benefits from cost synergies and higher volu
Slide 14: Additional Modeling Guidance – 3Q and FY 2019
Additional Modeling Guidance – 3Q and FY 2019 Additional Modeling Guidance – 3Q19E Additional Modeling Guidance – FY19E Base Tax Rate 20% - 22% Base Tax Rate 20% - 22% (vs. 17% for 2018) Share count – diluted ~747 million Share count – diluted ~747 million D&A – D&A – Includes Merger-Related Amortiz
Slide 15: 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 16: 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 Consolidated interim Financial Statements and accompanying n
Slide 17: 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