dupont 1q12 slides final
TRANSCRIPT
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8/2/2019 DuPont 1Q12 Slides FINAL
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DuPont 1Q 2012 Earnings
Conference Call
DuPont 1Q 2012 Earnings Conference Call
April 19, 2012
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DuPont 1Q 2012 Earnings
Conference Call
DuPont 1Q 2012 Earnings
Conference Call
The attached charts include company information that does not conform to generally accepted accounting principles
(GAAP). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect
to ongoing operating results of the company and allows investors to better evaluate the financial results of the company.
These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures
may not be consistent with similar measures provided by other companies.
This data should be read in conjunction with the Companys first quarter earnings news release dated April 19, 2012, which
will be furnished to the SEC on Form 8-K. Reconciliations of non-GAAP measures to GAAP results are available on the
Investor Center website at www.dupont.com.
Forward Looking Statements
During the course of this presentation we may make forward-looking statements or provide forward-looking information. All
statements that address expectations or projections about the future are forward-looking statements. Some of these
statements include words such as plans, expects, will, anticipates, believes, intends, and estimates. Although
they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of
risks, uncertainties, and assumptions. Some of those risk factors include: fluctuations in energy and raw material prices;
failure to develop and market new products and optimally manage product life cycles; global economic and capital markets
conditions; litigation and environmental matters; changes in laws and regulations or political conditions; and business or
supply disruptions. The Company does not undertake to update any forward-looking statements as a result of future
developments or new information.
Developing Markets
Total developing markets is comprised of Developing Asia, Developing Europe, Middle East & Africa, and Latin America. A
detailed list of all developing countries is available on the Earnings News Release link on the Investor Center website at
www.dupont.com.
Regulation G
2
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$ in billions, except EPS
1Q12 vs. 1Q11
EPS
Underlying* $1.61 6%
Reported $1.57
Segment PTOI* $2.4 12%
Consolidated Net Sales $11.2 12%
Volume (2)%
Local Prices 8%
Currency Impact (1)%
Portfolio / Other 7%
1Q12 1Q11
Base Tax Rate* 23.9% 21.3%
* See Schedules B, C, and D in the earnings news release for details ofsignificant items and reconciliation of non-GAAP measures.
1Q 2012 Financial Highlights
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1Q 2012 EPS Waterfall
4
KeyTakeaways
Pricing discipline and new products contribute to growth Volume reflects Ag gains in all regions offset by softness in PV and
industrial markets
* Excluding significant items. See schedules B and D in the earnings news
release for significant items and the reconciliation of non-GAAP measures.
$1.52
$.73
($.01)
($.06) ($.06)
($.28)
($.20)
$.07 ($.04)($.06)
1Q'11 Local Prices Variable Cost Volume Fixed Cost Currency Portfolio
Changes
Exchange
Gains/Losses
Income Tax Other 1Q'12
$1.61
Underlying
&
Reported
EPS
Underlying
EPS*
$1.57
Reported
EPS
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Global Sales Regional Highlights
1Q 2012 Sales YOY % CHG1Q 2012 Sales by Region
U.S. & Canada43%
Developing
EMEA10%
Developed
EMEA18%
DevelopingAsia10%
DevelopedAsia8%
Latin America11%
Region %
Worldwide 12
U.S. & Canada 13
Non-U.S. & Canada 11
Developing Markets 15
Developing Asia -2
Developing EMEA 30
Latin America 23
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Balance Sheet and CashMarch 31, 2012
Free Cash Flow*
$500 million contribution to principal
US pension plan (Jan-12)
~$100 million working capital
productivity
Improved net working capital turnover
by ~5%*
Capex spend ~$2.1B FY; $0.3B 1Q12
Strong Balance Sheet
$3.6B cash, cash equivalents andmarketable securities
$14.8B gross debt
$11.2B net debt*
* Reconciliations of free cash flow, net debt and net working capital turnover can be
found on the companys Investor Center website at www.dupont.com.
Free Cash Flow*
-2.5
-2.0
-1.5
-1.0
-0.5
0.01Q11 1Q12
$Billions
0
4
8
12
16
Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
$Billio
ns
Gross Debt Cash Net Debt*
Cash and Debt
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AgriculturePioneer, Crop Protection
0.0
1.0
2.0
3.0
4.0
5.0
1Q10 1Q11 1Q12
$inBillions
1Q PTOI **
1Q Sales *
1Q10 1Q11 1Q120%
12%
24%
36%
0
500
1000
1500
PTOIM
argin
$inMillions
* Segment sales include transfers.
** Excluding significant items. See schedules C and D in the earningsnews release for reconciliation of non-GAAP measures.
2Q Outlook
Sales up mid teens with mid single digit earnings growth
Seed sales growth underpinned by a strong finish to the
North American and European planting season
Crop Protection sales significantly higher on northern
hemisphere market conditions and new products
Currency headwind moderates from 1Q levels
1Q Comments
Sales +16% to $4.1B
PTOI +18% to $1.3B
Seed sales +20% to $3.2B
All regions contributed to growth. Strong start to North
America season, strong and early start to Europe and
robust performance in Brazil Safrinha summer corn. Price
realization and volume growth on track
Crop Protection sales +7% to $0.9B
Rynaxypyr continued growth; Europe strong, early start
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Nutrition & Health
0.0
0.2
0.4
0.6
0.8
1.0
1Q10 1Q11 1Q12
$inBillions
1Q Sales *1Q Comments
1Q Sales +149%, primarily Danisco Specialty Food Ingredient
Solae specialty protein business continued growth offset by
lower soy commodity sales in line with business objectives
of mix enrichment
Earnings increased to $83 million on integration and positive
cost synergy benefit of the Danisco specialty food
ingredients acquisition
Earnings included $21 million amortization expense
associated with step-up of acquired intangible assets
1Q PTOI **
1Q10 1Q11 1Q12
0%
3%
6%
9%
12%
15%
0
20
40
60
80
100
PTOI
Margin
$inM
illions
2Q Outlook
Sales of $820 to $860 million
Increased earnings on higher sales and cost synergies offset
in part by raw material increases.
Earnings will include $21 million amortization expense
associated with step-up of acquired intangible assets
* Segment sales include transfers.
** Excluding significant items. See schedules C and D in the earningsnews release for reconciliation of non-GAAP measures.
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Electronics & Communications
0%
4%
8%
12%
16%
20%
0
25
50
75
100
125
1Q10 1Q11 1Q12
PTOIMargin
$inMillions
0.0
0.2
0.4
0.6
0.8
1.0
1Q10 1Q11 1Q12
$inBillions
1Q Sales *
1Q PTOI **
1Q Comments
Sales down 17% on 18% lower volumes
Price up 1%, essentially metals pass through
PV cell and modules recovering late in 1Q, with
share gains in Solamet metallization paste
Consumer electronics mixed with strong
demand for smart phones and tablets
PTOI and PTOI margin down on lower volumeand plant utilization
2Q Outlook
Sales down moderately
PV installations up ~10% for full year. PV
market recovery expected by mid-2012
Demand growth for smart phones, tablets
and laptops
PTOI down substantially on lower volume
* Segment sales include transfers.
** Excluding significant items. See schedules C and D in the earningsnews release for reconciliation of non-GAAP measures.
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Industrial Biosciences
1Q12
0%
3%
6%
9%
12%
15%
0
10
20
30
40
50
PTOIMargin
$inM
illions
1Q PTOI **
1Q Sales *1Q Comments
1Q reflects acquisition of Genencor
Strong demand in enzymes, especially in animal
nutrition with new product launches and increased
demand in grain processing (high fructose corn syrup
and ethanol)
Sorona gaining market adoptions in carpeting
PTOI includes $5 million amortization expenseassociated with step-up of acquired intangible assets
2Q Outlook
Sales of $290 to $320 million on continued
growth in animal nutrition and food, strong
growth in grain processing
PTOI margin low double digits. PTOI includes
$5 million amortization expense associated with
step-up of acquired intangible assets.
0.0
0.1
0.2
0.3
0.4
1Q12
$inBillions
* Segment sales include transfers.
** Excluding significant items. See schedules C and D in the earningsnews release for reconciliation of non-GAAP measures.
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Performance ChemicalsTitanium Technologies (DTT), Chemicals & Fluoroproducts (DC&F)
1Q Sales *
1Q PTOI **
0.0
0.5
1.0
1.5
2.0
1Q10 1Q11 1Q12
$inBillions
0%
10%
20%
30%
0
200
400
600
1Q10 1Q11 1Q12
PTOIMar
gin
$inMillio
ns
1Q Comments
2Q Outlook
Sales up modestly primarily on price
Ongoing market recovery, particularly in N. America
Destocking ending in Asia
PTOI up moderately
Sales up 6% on price
Global sequential improvement in TiO2 demand
Robust demand for aniline, cyanide products
PTOI up 30% on strong pricing and productivity in
both businesses
* Segment sales include transfers.
** Excluding significant items. See schedules C and D in the earningsnews release for reconciliation of non-GAAP measures.
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Performance Coatings
0.0%
2.5%
5.0%
7.5%
10.0%
0
25
50
75
100
1Q10 1Q11 1Q12
$inM
illions
1Q Sales *
1Q PTOI **
0.00
0.25
0.50
0.75
1.00
1.25
1Q10 1Q11 1Q12
$inBillions
2Q Outlook
Sales up slightly on volume and price
PTOI up substantially with continued margin
improvement
Global auto builds up 10-12% in 2Q, 5-6% for FY
Continued pricing and mix enrichment actions
Ongoing productivity emphasis
1Q Comments
Sales up 6% with price increases in all regions and
market segments
Auto builds up 4% globally, up 17% in NA
Lower Refinish volume, primarily in S. Europe
Continued demand growth for NA heavy duty trucks
PTOI up 34% with 170 bps margin expansion
through pricing, mix enrichment actions and
productivity gains
PTOIM
argin
* Segment sales include transfers.
** Excluding significant items. See schedules C and D in the earningsnews release for reconciliation of non-GAAP measures.
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Performance MaterialsPerformance Polymers (DPP), Packaging & Industrial Polymers (P&IP)
0%
5%
10%
15%
20%
0
75
150
225
300
1Q10 1Q11 1Q12
$inMillions
0.0
0.4
0.8
1.2
1.6
2.0
1Q10 1Q11 1Q12
$inBillions
1Q Sales *
1Q PTOI **
1Q Comments
Sales down 6% on 10% lower volume
Price up 6% offsetting higher raw material costs
Continued soft industrial and electronics
demand, particularly in AP & EU
Sequential growth in all regions
PTOI down $48 million on lower volume
2Q Outlook
Sales down slightly with continued sequential
growth Global auto builds up 10-12% with NA up 22%
PTOI up moderately due to lower ethane costsPTOIMa
rgin
* Segment sales include transfers.
** Excluding significant items. See schedules C and D in the earningsnews release for reconciliation of non-GAAP measures.
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Safety & ProtectionProtection Technologies (DPT), Building Innovations (BI), Sustainable Solutions (DSS)
0%
4%
8%
12%
16%
20%
24%
0
25
50
75
100
125
150
1Q10 1Q11 1Q12
PTOIMargin
$inMillio
ns
1Q Sales *
1Q PTOI **
0.00
0.25
0.50
0.75
1.00
1Q10 1Q11 1Q12
$inBillions
2Q Outlook
Sales and PTOI up slightly with continued demand
improvement in North America
Improved demand for Kevlar in public sector andindustrial markets
Sequential demand improvement for Nomex
particularly in auto and energy solutions
1Q Comments Sales down 2% with 5% lower volume partially
offset by 3% higher selling prices
Continued softness in industrial markets with weak
infrastructure spend
PTOI down 31% on lower volume and higher costs
associated with operating the new Kevlar CooperRiver plant
* Segment sales include transfers.
** Excluding significant items. See schedules C and D in the earningsnews release for reconciliation of non-GAAP measures.
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Industrial Chemical Prices
Fixed Cost Control
Total Company Volume and Local Pricing Trends
Appendix
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Industrial Chemical PricesIndustrial Chemical Prices
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DuPont Selling Prices Worldwide *
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DuPont Sales Volume Worldwide *
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30
35
40
45
50
55
1 Qtr 2 Qtr 3 Qtr 4 Qtr Full Year
2008 2009 2010 2011 2012
Note: Data excludes significant items in all periods.
* See Schedule D in earnings news release for detailed
reconciliations of non-GAAP measures.
Productivity Initiative Fixed Cost ControlFixed Costs as % of Consolidated Sales*
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