Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q1 2020 Earnings Presentation
17 slides from Dupont De Nemours's earnings presentation, May 5, 2020
Slide 1: DuPont 1Q 2020 Earnings Conference Call
DuPont 1Q 2020 Earnings Conference Call May 5, 2020
Slide 2: Priorities in Current Environment
Priorities in Current Environment Safety & well- Safely Strengthening Partnering with being of our maintaining our balance other industry employees our operations sheet leaders › Restricting site access to › Only 2 of our 170 global › Enhanced liquidity & secured › Increased production of Tyvek® man
Slide 3: Executing a Disciplined Plan
Executing a Disciplined Plan 01 Optimize Working Capital ~$500M reduction in capital expenditures versus prior 02 Defer Certain CapEx year 03 Optimize Cost Structure (G&A and COGS) ~$4B in cash and available credit facility liquidity 04 New Bonds and Lending Facilities Put in Place 05 Shutdown/Slowd
Slide 4: Liquidity Profile is Strong
Liquidity Profile is Strong Liquidity Profile Sources of Cash – FY2020 est. Free Cash Flow Working Capital Proceeds from 364-day Conversion Improvement Non-Core revolving credit facility >90% >10% Divestitures Cash & Cash ($1.0B) Equivalents ($1.75B) ~$4B Uses of Cash – FY 2020 est. Available(1) Inv
Slide 5: Manageable Debt Load
Manageable Debt Load › November 2020 maturities to be satisfied Anticipated Long-Term Debt with proceeds from April bond issuance Maturities: 2020 – 2024(1) › Net neutral to debt level at year-end Refinanced via April bond issuance › April bond maturity accelerates upon closing of IFF transaction 2.
Slide 6: Maintain Focus on Cost Actions; Defer Certain Capital Expenditures
Maintain Focus on Cost Actions; Defer Certain Capital Expenditures Incremental 2020 Cost Actions Capital Expenditures* $180 ~$1.5 ~$1.3 $90 ~$1.0 2020 2020 Initial Est. Current Est. 2019 Initial Est. Current Est. Savings vs. 2019 Capital Expenditures (in Millions) (in Billions) › Focus on cost take-
Slide 7: 1Q 2020 Financial Highlights
1Q 2020 Financial Highlights NET SALES ORGANIC OPERATING OPERATING ADJUSTED EPS(1) $0.84 $5.2 billion SALES(1) EBITDA(1) EBITDA MARGIN(2) -9% -4% -2% $1.3 billion 25.3% Net Sales of $5.2B Operating EBITDA margin(2) of Adjusted EPS(1) of $0.84 Portfolio (1%), Currency (1%), 25.3% versus 26.4% in prio
Slide 8: 1Q 2020 Net Sales Bridge
1Q 2020 Net Sales Bridge Organic Sales(1) Change -2% +3% -12% +8% -1% -1% -2% -10% In Millions Divestments of: Strengthening Semiconductor Food & Mobility Water DuPont Teijin › Natural Colors of USD, Technologies Beverage Solutions Solutions Films $5,414 (N&B) primarily vs. Interconnect Health & Hea
Slide 9: 1Q 2020 Adjusted EPS Bridge
1Q 2020 Adjusted EPS(1) Bridge › Organic sales Absence of: Base tax rate: growth in E&I, › Gain on Asset › 1Q’20 – 26.5% $0.92 N&B Sale (E&I) $0.84 › 1Q’19 – 21.0% › Synergies & › Licensing cost actions Income (S&C) Below the Line Items 1Q19 Segment T&I Price / Mix Discrete Income D&A Share EGL 1Q20
Slide 10: N&B & IFF Update
N&B & IFF Update 4Q Post 1H 2020 2H 2020 1Q 2021 2019 Close N&B Legal Separation/ Cleared Revenue Initial IFF Entity and $7.3B Cash Agreement Integration U.S. Leadership Anticipated & Cost Registration Shareholder ERP Go- Pmt. to Signed Teams In Regulatory Announce. Closing Synergy Statement Vote Li
Slide 11: 2Q 2020 Financial Expectations
2Q 2020 Financial Expectations Electronics & Nutrition & Transportation Safety & Non-Core Segment Imaging Biosciences & Industrial Construction › Continued strength › Continued strength in › Volumes significantly › Continued strength in › Broad-based Key in Semiconductor F&B, probiotics, impacted by
Slide 12: Appendix
Appendix
Slide 13: Segment Results – 1Q 2020
Segment Results – 1Q 2020 Operating Net Sales Operating EBITDA (Organic(1) Change EBITDA(1) Segment Highlights v. 1Q’19) (Change v. 1Q’19) Margin(2) (Change v. 1Q’19) Electronics & $884 million $253 million 28.6% › Semiconductor technology drove top-line growth Imaging +8% (12%) (630 bps) › Operatin
Slide 14: Additional Modeling Guidance – Full Year 2020
Additional Modeling Guidance – Full Year 2020 Base Tax Rate ~21% - 23% Share count – diluted ~735 million Weighted Average D&A(1) – ~$3,100 million, pre tax Includes Merger-Related Amortization Merger-Related Amortization(1) ~$1,930 million, pre tax Interest Expense, net ~$680 million, pre tax Excha
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 interim Consolidated Financial Statements and accompanying n
Slide 17: DuPont™, the with DuPont Logo,
© 2020 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