Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q4 2023 Earnings Presentation
24 slides from Dupont De Nemours's earnings presentation, Feb 6, 2024
Slide 1: 4Q & FY 2023 Financial Results
4Q & FY 2023 Financial Results February 6, 2024
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: Highlights
Highlights 4Q’23 FY 2023 FY 2022 Actuals Actuals Actuals 7% sales decline YoY during 4Q’23 driven by incremental channel inventory destocking within our Net Sales $2.9 B $12.1 B $13.0 B industrial-based businesses, as well as continued lower volumes in China Slight sequential sales improvement i
Slide 4: Balance Sheet Flexibility To Drive Value Creation
Balance Sheet Flexibility To Drive Value Creation Financial Policy Highlights Adj. Net Debt / EBITDA(1) Strong balance sheet • Committed to a strong investment grade credit profile • 2023 YE leverage near • Targeting 2.0x adjusted net debt/EBITDA(1) leverage 2.3x 2.0x target 2.1x • Significant exces
Slide 5: 4Q 2023 Financial Highlights
4Q 2023 Financial Highlights NET SALES ORGANIC OPERATING ADJUSTED CASH FROM $2.9 billion SALES EBITDA EPS OPERATING ACT. -7% -10% $715 million $0.87 / share $646 million › Volume -9% driven by incremental channel › Operating EBITDA down 6% year-over-year on volume inventory destocking within our ind
Slide 6: 4Q 2023 Adjusted EPS Bridge
4Q 2023 Adjusted EPS Bridge Segment Results ($0.07) -2% $0.87 $0.89 ₋ Volume ₊ Share ₊ Tax rate ₋ EGL(1) ($0.05) ₋ Reduced production rates repurchases +$0.03 ₋ Depr(1) ($0.02) +$0.08 ₊ Lower input costs ₊ NCI(1) +$0.01 ₊ Discrete items ₊ Spectrum 4Q 2022 Share Other 4Q 2023 Segments Tax rate Below-
Slide 7: Electronics & Industrial
Electronics & Industrial 4Q Net Sales Vol (-5%), Price (-2%), Currency (0%), Portfolio (+8%) +1% $ in Millions $1,361 $1,343 Organic Growth 4Q 2023 YoY Highlights -7% • Organic sales by line of business: • Semiconductor Technologies down high-single digits resulting from continued customer inventory
Slide 8: Water & Protection
Water & Protection 4Q Net Sales Vol (-15%), Price (0%), Currency (0%), Portfolio (0%) -15% $ in Millions $1,497 Organic $1,277 Growth- -15% 4Q 2023 YoY Highlights • Organic sales by line of business: • Safety Solutions down 20% on volume declines driven mainly by channel inventory destocking, most n
Slide 9: 1Q and FY 2024 Guidance
1Q and FY 2024 Guidance 1Q 2024 FY 2024 Key Assumptions Channel inventory destocking in industrial-based businesses continuing into 2024 with expected recovery Net Sales ~ $2.8 billion $11.9 - $12.3 billion varying by end-market Sequential sales growth and ~10% increase in operating Operating EB
Slide 10: Appendix
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Slide 11: 4Q 2023 Net Sales Bridge
4Q 2023 Net Sales Bridge Organic Sales -10% Volume -9% Price -1% +3% Flat -7% -15% -4% -7% $3,104 $2,898 In Millions Semiconductor Safety Retained Spectrum acquisition(1) ₊ Euro Technologies Solutions Businesses (E&I) ₋ JPY Industrial Water Solutions Solutions Interconnect Shelter Solutions Solution
Slide 12: FY 2023 Financial Highlights
FY 2023 Financial Highlights NET SALES ORGANIC OPERATING ADJUSTED CASH FROM $12.1 billion SALES EBITDA EPS OPERATING ACT. -7% -6% $2.94 billion $3.48 / share $2.2 billion › Volume -8%: channel inventory destocking › Operating EBITDA down 10% year-over-year as volume that impacted many end-markets an
Slide 13: FY 2023 Net Sales Bridge
FY 2023 Net Sales Bridge Organic Sales -6% Volume -8% Price +2% Flat -1% -11% -4% +3% -7% $13,017 Acquisition of $12,068 In Millions Spectrum (E&I) mostly offset by divestiture of non-core business (1) ₋ CNY Semiconductor Shelter Retained Technologies Solutions (Corporate & Other) ₋ JPY Businesses ₊
Slide 14: 2024 Segment Expectations
2024 Segment Expectations Electronics & Water & Industrial Protection Segment • Anticipated electronics market recovery in 2024, • Channel inventory destocking within industrial- including improvement in semi fab utilization rates, based end-markets, as well as water, expected to Key Drivers and imp
Slide 15: Additional Modeling Guidance – Full Year 2024
Additional Modeling Guidance – Full Year 2024 Below-the-line estimates Items included in Operating EBITDA Base Tax Rate 23 – 24% R&D ~$500 million D&A ~$1,200 million, pre-tax Corporate & Other: Depreciation ~$600 million, pre-tax Intangible Amortization ~$600 million, pre-tax - Corporate expenses ~
Slide 16: Innovation Driving Growth in Strategic Focus Areas
Innovation Driving Growth in Strategic Focus Areas Water Industrial Next-Generation Electronics Protection Technologies Automotive • Received Best ESG Partner • Significantly advanced • Won French police multi- • Opened Kalrez® Tralee Park • Launched Laird™ ReZorb™, award by Samsung Electronics comm
Slide 17: Overview
Overview On November 1, 2022, DuPont completed the divestiture, previously announced on February 18, 2022, of the majority of the historical Mobility & Materials segment, including the Engineering Polymers business line and select product lines within the Advanced Solutions and Performance Resins bu
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: Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures 21
Slide 22: Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures 22
Slide 23: Selected Financial Information and Non-GAAP Measures
Selected Financial Information and Non-GAAP Measures 23
Slide 24: Trademarks and investor teach-in replay information
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 © 2024 DuPont de Nemours, Inc. All rig