Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q2 2023 Earnings Presentation
21 slides from Dupont De Nemours's earnings presentation, Aug 2, 2023
Slide 1: 2Q 2023 Financial Results
2Q 2023 Financial Results August 2, 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: 2Q 2023 Highlights
2Q 2023 Highlights 2Q 2023 2Q 2023 Actuals Guide 4% top-line organic sales decline YoY driven by continued volume pressure in consumer-driven end-markets, mainly electronics Net Sales $3.09 B ~$3.02 B Sequential sales improvement in Interconnect Solutions during the quarter Strength in water,
Slide 4: Advancing Strategic Priorities
Advancing Strategic Priorities Completed acquisition of Spectrum(1) on August 1st o Integration underway into Industrial Solutions line of business within E&I o Increases total revenue in high-growth healthcare markets to ~10% of total DuPont portfolio Delrin® divestiture still expected to close
Slide 5: 2Q 2023 Financial Highlights
2Q 2023 Financial Highlights NET SALES ORGANIC OPERATING ADJUSTED CASH FROM $3.1 billion SALES EBITDA EPS OPERATING ACT -7% -4% $738 million $0.85 / share $400 million › Operating EBITDA down 11% year-over-year on volume › Price +2%: Carryover impact of actions taken in declines and the impact of re
Slide 6: 2Q 2023 Adjusted EPS Bridge
2Q 2023 Adjusted EPS Bridge Segment Results ($0.14) -3% $0.88 $0.85 ₋ Volume ₋ Electronics ₊ Interest ₋ EGL/NCI(1) ₋ Construction income and ₊ Share ($0.07) repurchases ₊ Water lower interest +$0.08 ₋ Tax rate ₊ Auto adhesives expense ($0.01) +$0.11 ₊ Aerospace ₊ Healthcare ₋ Reduced production rate
Slide 7: Electronics & Industrial
Electronics & Industrial 2Q Net Sales Vol (-12%), Price (0%), Currency (-1%), Portfolio (-1%) $1,527 -14% $ in Millions $1,312 Organic Growth 2Q 2023 YoY Highlights -12% • Organic sales decline reflects a decline in volume: • Semiconductor Technologies volume down 19% resulting from reduced semicond
Slide 8: Water & Protection
Water & Protection 2Q Net Sales Vol (-4%), Price (+5%), Currency (-1%), Portfolio (0%) Flat $1,494 $ in Millions $1,497 Organic Growth +1% 2Q 2023 YoY Highlights • Increase in price reflects the carryover impact of actions taken in 2022 to offset broad-based cost inflation • Organic sales by line of
Slide 9: 3Q and FY 2023 Guidance
3Q and FY 2023 Guidance 3Q 2023(1) FY 2023(1) Key Assumptions Fairly steady demand in most industrial end- $12.45 - $12.55 billion markets within E&I and W&P Net Sales ~ $3.15 billion (Prior: $12.3 - $12.5 billion) Sales moderation in Water Solutions due to Operating $2.975 - $3.025 billion slow
Slide 10: Appendix
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Slide 11: 2Q 2023 Net Sales Bridge
2Q 2023 Net Sales Bridge Organic Sales -4% Price +2% Volume -6% -2% -1% -12% +1% +9% -7% $3,322 $3,094 In Millions Divestiture of non-core business(1) Industrial Strengthening of Water Retained (Corporate & Other) Solutions USD, primarily Solutions Businesses against the CNY and JPY Interconnect Saf
Slide 12: 2023 Segment Expectations
2023 Segment Expectations Electronics & Water & Segment Industrial Protection • Top-line expected to be down approximately 10% • Top-line expected to be down mid-single digits on Key Drivers on organic basis in 3Q’23 vs. year-ago period organic basis in 3Q’23 vs. year-ago period we lap year-over-yea
Slide 13: Additional Modeling Guidance – Full Year 2023
Additional Modeling Guidance – Full Year 2023 Below-the-line estimates Items included in Operating EBITDA ~26% - 3Q’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 Industrial Next-Generation Electronics Water Protection Automotive Technologies • Improved efficiency and • Launched next generation • Winner of ACC’s Sustainability • Launched Artistri® P1600 • Nomination of capacity in display material Multibore™
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