Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — DowDuPont — Q3 2018 Earnings Presentation
16 slides from Dupont De Nemours's earnings presentation, Nov 1, 2018
Slide 1: DowDuPont 3Q18 Earnings Conference Call
DowDuPont 3Q18 Earnings Conference Call November 1, 2018
Slide 2: Third Quarter Highlights
Third Quarter Highlights Financial Highlights – Sales grew 10% with increases in all divisions, all regions – Volume grew 5%, reflecting growth in all divisions, all regions – Local price rose 5% with improvement in all divisions, all regions – Operating EBITDA increased 19% – Adjusted EPS rose 35%
Slide 3: Progress to Spins & Key Activities
Progress to Spins & Key Activities Delivered earnings growth each quarter since merger close Timing of Increased cost synergy target to $3.6B; increased YoY savings to $1.5B Achieved more than $1.3B in cost synergy savings since merger close Separations Announced leadership for 3 intended sp
Slide 4: Capital Structure Highlights
Capital Structure Highlights Creating Three Strong Investment Grade Companies Year End 2019 Operating Target Rating(1) Adjusted Debt Key composition of adj. debt Cash Retains heritage DuPont U.S. pension plans, OPEBs and certain non-U.S. pension plans(2) (~$4B agency adjusted) A- $2B ~$4B Retire
Slide 5: Implementing Capital Structures with Additional Shareholder Returns
Implementing Capital Structures with Additional Shareholder Returns ©2018 DowDuPont. All rights reserved. 5
Slide 6: 3Q 2018 Financial Highlights
3Q 2018 Financial Highlights1 Financial Performance Snapshot 3Q18 3Q17 B/(W) Net Sales ($MM) 20,123 18,285 1,838 + 10% Operating EBITDA ($MM) 3,829 3,221 608 + 19% GAAP EPS from Cont. Ops. ($/share) 0.21 0.33 (0.12) (36%) Adjusted EPS ($/share) 0.74 0.55 0.19 + 35% 3Q 2018 Pro Forma Adjusted EPS Var
Slide 7: FY18 Modeling Guidance
FY18 Modeling Guidance Refer to slide 13 in Appendix for additional commentary on FY segment outlook Full Year Net Sales: ↗ high-single digits percent Full Year Adj. EPS: ↗ up low-twenties percent Division Outlook FY18 vs. FY171 Net Sales Op. EBITDA (incl. Equity Earnings) Agriculture Flat Up mid-
Slide 8: Materials Science Highlights
Materials Science Highlights Division Highlights 3Q18 3Q17 Division Sales Change Vol +6% • Net sales up 13%; double-digit gains in all segments Net Sales ($MM) 12,416 10,943 Local Price +7% • Volume growth and local price gains in all regions Jen/Ann Op. EBITDA ($MM) 2,473 2,283 Currency – Port./Oth
Slide 9: Specialty Products Highlights
Specialty Products Highlights Division Highlights 3Q18 3Q17 Division Sales Change Net Sales ($MM) 5,683 5,272 Vol +3% • Volume gains delivered by all four segments and across all regions Local Price +2% Jen/Ann Op. EBITDA ($MM) 1,645 1,401 Currency – • Op. EBITDA margin expanded by more than 235bps
Slide 10: Agriculture Highlights
Agriculture Highlights Third Quarter Results 3Q18 3Q17 • Crop Protection sales of $1.4B rose 10%, primarily due to new product launches Net Sales ($MM) 1,946 1,911 (including Picoxy-based products in LA as well as PyraxaltTM in AP), seed applied Op. EBITDA ($MM) (104) (239) technologies in LA and im
Slide 11: Slide 11
Slide 12: Appendix
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Slide 13: FY18 Segment Expectations
FY18 Segment Expectations Refer in conjunction with slide 7 Segments Key Sales and Operating EBITDA Outlook Drivers (FY18 vs. FY17 1) Full year sales projected to be flat with 2017 with price/mix gains and new products offset by lower planted area, currency Agriculture pressures and portfolio. Op. E
Slide 14: Safe Harbor Statement
Safe Harbor Statement Regulation G This presentation includes information that does not conform to U.S. GAAP and are considered non-GAAP measures. These measures include the Company's pro forma consolidated results and pro forma earnings per share on an adjusted basis, which excludes the after-tax i
Slide 15: Safe Harbor Statement, continued
Safe Harbor Statement, continued Forward-Looking Statements, continued combined operations; (ii) costs to achieve and achievement of the anticipated synergies by the combined agriculture, materials science and specialty products businesses; (iii) risks associated with the Intended Business Separatio
Slide 16: Safe Harbor Statement, continued
Safe Harbor Statement, continued Forward-Looking Statements, continued Discussion of segment revenue, operating EBITDA and price/volume metrics on a divisional basis for Agriculture is based on the results of the Agriculture segment; for Materials Science is based on the combined results of the Perf