Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — Q2 2020 Earnings Presentation
15 slides from Dupont De Nemours's earnings presentation, Jul 30, 2020
Slide 1: 2Q 2020 Earnings Conference Call
2Q 2020 Earnings Conference Call July 30, 2020
Slide 2: Priorities in Current Environment
Priorities in Current Environment All-time best safety performance Safety & well-being of our employees 100 percent of manufacturing sites currently operating in accordance with plan Safely maintaining our operations Solid plan in place for meeting long-term debt maturities through 3Q 2023 Strengthe
Slide 3: Our Playbook is Working
Our Playbook is Working › Delivered $130 million in cost savings in the quarter; ~2/3rd structural 2020 Target: $180 › SG&A as a percent of sales improved 50 basis points vs. 2Q 2019 million structural cost Optimize Cost Structure (G&A › Maintaining R&D spend at ~4 percent of sales reductions from 2
Slide 4: 2Q 2020 Financial Highlights
2Q 2020 Financial Highlights NET SALES ORGANIC OPERATING Adjusted QTD Cash from $4.8 billion SALES(1) EBITDA(1) EPS(1) Operating Activities -12% -10% $1.1 billion $0.70 / share ~$800 million Net Sales of $4.8B Decremental margins of 45% in-line Free Cash Flow(1) of Portfolio (1%), Currency (1%), wit
Slide 5: 2Q 2020 Net Sales Bridge
2Q 2020 Net Sales Bridge Market Dynamics Organic Sales(1) Change -10% Positive Factors- -1% -1% +7% +1% -33% ✓ Water filtration demand strong ✓ Health & wellness a priority -8% -20% ✓ Remote work environments drive need for data storage and cloud $5,468 capacity Food & ✓ Tyvek® protective garment Di
Slide 6: 2Q 2020 Adjusted EPS Bridge
2Q 2020 Adjusted EPS(1) Bridge $0.97 $0.70 › Base tax rate - +$0.04 › Share count - +$0.01 › Interest – ($0.02) Segment Results 2Q19 Cost Savings Customer Costs Associated Impact of Other 2Q20 Adjusted EPS(1) Settlement with Idle Facilities organic Adjusted (Non-Core) (primarily T&I) revenue EPS(1)
Slide 7: 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(1) Synergy Statement Vote
Slide 8: 3Q 2020 Financial Expectations
3Q 2020 Financial Expectations Electronics & Nutrition & Transportation Safety & Non-Core Segment Imaging Biosciences & Industrial Construction › Continued strength in › Continued strength in › Expecting global auto › Demand in Water Solutions › Broad-based Key Semiconductor F&B, probiotics, builds
Slide 9: Appendix
Appendix
Slide 10: Core Segment Results – 2Q 2020
Core Segment Results – 2Q 2020 Operating Net Sales Operating EBITDA (Organic Change EBITDA Segment Highlights v. 2Q’19) (Change v. 2Q’19) Margin(1) (Change v. 2Q’19) Electronics & $905 million $277 million 30.6% › Semiconductor drove top-line growth Imaging +7% +13% +190 bps › Productivity and favor
Slide 11: Liquidity Profile is Strong
Liquidity Profile is Strong Liquidity Profile Gross & Net Debt Gross Debt Cash Net Debt 364-day 20 revolving credit facility 16 Cash & Cash ($1.0B) Equivalents $ Billions 12 ($3.8B) ~$6B 8 Available 4 Available Commercial 0 Paper Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 ($1.4B) › Gross debt and cash balan
Slide 12: Additional Modeling Guidance – Full Year 2020
Additional Modeling Guidance – Full Year 2020 Below-the-line estimates: Items included in Operating EBITDA: Base Tax Rate ~21% - 23% R&D ~$900 million D&A(1) – Corporate Cost $175 million ~$3,100 million, pre tax Includes Merger-Related Amortization Merger-Related Amortization(1) ~$1,925 million, pr
Slide 13: 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 14: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement About Forward-Looking Statements, continued Non-GAAP Financial Measures: This presentation includes information that does not conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are considered non-GAAP measu
Slide 15: 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