Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — DuPont — 2019 Electrical Products Group Spring Conference
18 slides from Dupont De Nemours's conference presentation, May 21, 2019
Slide 1: DuPont: Creating a world-class multi-industry specialty company
DuPont Creating a world-class multi-industry specialty company Ed Breen, Executive Chairman Elect May 21, 2019
Slide 2: Transforming everyday lives in 70+ countries
Transforming everyday lives in 70+ countries HQ: Wilmington, DE, USA ~170 Manufacturing Sites 10 Global R&D centers 10 Global innovation centers 2
Slide 3: Our businesses: Market-leading, innovation-led growth segments
Our businesses Market-leading, innovation-led growth segments FY2018(1) Electronics & Nutrition & Safety & Transportation & Imaging Biosciences Construction Advanced Polymers Sales: $4.7B Sales: $6.8B Sales: $5.5B Sales: $5.6B Adjusted Op EBITDA Adjusted Op EBITDA Adjusted Op EBITDA Adjusted Op EBIT
Slide 4: Businesses within new Non-Core segment
Businesses within new Non-Core segment ~$2B ~23%(1) FY 2018 net sales FY 2018 Op. EBITDA margin Tedlar® PVF materials • Solamet® PV pastes With the new segment we aim to: Photovoltaics & • advanced materials pastes • solar silicones Adv Materials • trichlorosilane (TCS) • Hemlock • Refine and align
Slide 5: Strong focus on returns
Strong focus on returns Disciplined capital allocation to deliver consistent top-tier returns ~ 4% annual ~ 4-5% annual capex target R&D investment target as % as % of sales of sales ~ 100bps annual ROIC improvement > 90% free cashflow conversion target target 5
Slide 6: Well positioned to benefit from global macro trends
Well positioned to benefit from global macro trends Health & Wellness Digital Revolution & Connectivity Advanced Mobility Medical & Pharma Personal Protection Sustainability 6
Slide 7: 2019 priorities focused on shareholder value creation
2019 priorities focused on shareholder value creation Enable strong Expand cash Continue to Drive top line margins Continue to generation improve ROIC Priorities growth through through strong execute through through innovation and productivity portfolio earnings effective capital pricing focus and a
Slide 8: The new DuPont: broad end-market exposure
The new DuPont: broad end-market exposure ~20% net sales into markets with Majority of end-markets experiencing growth rates short-term destocking consistent with our mid-term expectations Medical & Industrial & Pharmaceutical Personal Protection Automotive ~15% of Net Sales Food & Semiconductor & B
Slide 9: Balanced financial policy
Balanced financial policy Strong balance sheet Committed to a strong investment grade credit profile Internal investment Disciplined capital allocation to support product and market innovation Stable and growing dividend; targeting ~30-40% payout of adjusted net Dividends income Portfolio management
Slide 10: Re-iterate 2Q and FY 2019 guidance
Re-iterate 2Q and FY 2019 guidance Net Sales Op. EBITDA (incl. Equity Earnings) As reported: As reported: Down mid-single digits Down mid-single digits 2Q 2019 Organic(1): Adjusted(2): Down low-single digits Down low-single digits As reported: As reported: Flat Slightly down Full-Year 2019 Organic(1
Slide 11: Key takeaways
Key takeaways We have leading We are committed We have a plan to We will maximize positions in attractive to top line growth increase ROIC and shareholder value growth markets and above-market drive value creation through prudent earnings improvement portfolio actions Focused on consistently deliver
Slide 12: Appendix
Appendix <OUPONT »
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation Electronics & Imaging in millions 1Q17 2Q17 3Q17 4Q17 2017 1Q18 2Q18 3Q18 4Q18 2018 Pro Forma Pro Forma Pro Forma As Reported Pro Forma As Reported As Reported As Reported As Reported As Reported Operating EBITDA $ 407 $ 441 $ 411 $ 581 $ 1,840 $ 398 $ 407 $ 412 $ 685 $ 1,902
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Electronics & Imaging in millions 1Q17 2Q17 3Q17 4Q17 2017 1Q18 2Q18 3Q18 4Q18 2018 Pro Forma Pro Forma Pro Forma As Reported Pro Forma As Reported As Reported As Reported As Reported As Reported Operating EBITDA Margins 35.0% 36.1% 34.3% 48.7% 38.5% 34.5% 33.8% 34.5% 58.6% 4
Slide 15: Key terms
Key terms Organic revenue includes price and volume and excludes impacts of currency and portfolio Adjusted Operating EBITDA is defined as operating EBITDA excluding non-operating pension/OPEB costs and credits Adjusted Operating EBITDA Margin reflects Adjusted Operating EBITDA divided by net sales
Slide 16: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement About 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 of 1
Slide 17: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement About Forward-Looking Statements, continued Segment Information: DowDuPont’s measure of profit/loss for segment reporting purposes is Operating EBITDA (for the twelve months ended December 31, 2018) and pro forma Operating EBITDA (for the twelve months ende
Slide 18: Copyright notice
Copyright © 2019 DuPont. All rights reserved. DuPont™ and the DuPont Oval Logo are trademarks or registered trademarks of DuPont or its affiliates. Nothing contained herein shall be construed as a representation that any recommendations, use or resale of the product or process described herein is pe
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