dupont 2q 2021 earnings conference call...2q21 financial performance • broad-based organic growth...

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DuPont 2Q 2021 Earnings Conference Call August 3, 2021

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Page 1: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

DuPont 2Q 2021 Earnings Conference CallAugust 3, 2021

Page 2: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

2

Progress against strategic priorities • De-levered balance sheet further via $2B bond redemption in May

• Share repurchases in 2Q21 of ~$640 million; ~$1.1B+ through YTD June 2021

• Dividends of ~$160 million in 2Q21; grow dividend annually with earnings(1)

• Closed divestiture of Solamet® business at end of June

• Completed acquisition of Laird Performance Materials on July 1st

2Q21 financial performance• Broad-based organic growth driven by continued strength and recovery

in key end-markets

• Margin expansion and strong operating leverage despite escalating raw material costs and global supply chain and logistics challenges

• Raising full year 2021 financial guidance for net sales, operating EBITDA and adjusted EPS

(1) Dividends are subject to approval of DuPont’s Board of Directors.

2Q21 Highlights

Page 3: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

$465M revenue (2020)(1)

Thermal & Power Electromagnetic Integrated SolutionsGap Filler Pads Enclosure Solutions

(Elastomers)Multi-Function

Solutions

Liquid Gap Fillers Absorbers Co-Engineered Shields

Inductive Components Enclosure Solutions (Form in Place Gasket)

Acquisition of Laird Performance Materials

3

› Leading provider of electromagnetic shielding and thermal management solutions

› Combines DuPont’s premier applied material science expertise with Laird Performance Materials’ industry-leading applications engineering capabilities

› Advances our position and accelerates the transformation of Interconnect Solutions business into total solutions provider

› Integration of Laird into Interconnect Solutions underway

Exciting transaction for DuPont and E&I

(1) Source: Laird Performance Materials.

Page 4: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

Combination Enhances DuPont’s Position as Leading Electronic Materials Provider

4

› Expands our position with OEMs as a total solutions provider

Partner of Choice› Aligns to critical needs

across thermal management, signal integrity, power management, miniaturization, and high reliability

Innovation› Unique multi-functional

capabilities that leverage broad product portfolio and deep technical expertise

Broad Capabilities

Page 5: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

2Q 2021 Financial Highlights

5

Net Sales of $4.1B Price +3%, Volume +20%,

Currency +4%, Portfolio (1)%

NET SALES$4.1 billion

+26%

ORGANIC SALES(1)

+23%

› Organic Sales by Segment – M&M (+55%), E&I (+17%), W&P (+11%)

› Organic Sales by Region – Latin America (+56%), EMEA (+27%), U.S. & Can. (+24%), Asia Pacific (+20%)

› Double-digit volume improvement in all three reporting segments

› Year-over-year improvement driven by recovery of key end-markets adversely impacted by COVID-19 pandemic such as automotive, construction and industrial

› Continued strength in semiconductor and premium, next-generation smartphones

› Global supply constraints of key raw materials improved but are expected to remain tight through end of the year (M&M)

Operating EBITDA margin(1)

expansion of 460 basis points

OPERATING EBITDA(1)

$1.06 billion

Adjusted EPS(1)

$1.06 / share

› Operating EBITDA(1) up 53% from year-ago period

› Year-over-year improvement driven by strong volumes, absence of $150 million of charges in prior year related to idling facilities, and absence of $64 million gain in prior year related to customer settlement

› Incremental margin during the quarter of 43 percent

› Adjusted EPS up about 240% versus prior year

Free Cash Flow(1)

of $224 million

2Q 2021 Cash from Operating Activities

$440 million

› Free cash flow reflects capital expenditures of $216 million

› Working capital headwinds of about $140 million led by higher inventories and higher accounts receivable balances on increased sales

(1) Organic sales, operating EBITDA, adjusted EPS, and free cash flow are non-GAAP measures. Operating EBITDA margin and incremental margin are derived from non-GAAP measures. Refer to slide 17 for definitions and additional information.

Page 6: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

2Q 2021 Net Sales Bridge

6

2Q 2020 Portfolio Currency Electronics & Industrial

Water & Protection

Mobility & Materials

Corporate(2) 2Q 2021

$3,289 $4,135

+26%

-1% +4%

+17%+11%

+55% 9%

Divestiture of Trichlorosilane business (reflected in Corporate)

In M

illio

ns

Semiconductor Technologies

Interconnect Solutions

Industrial Solutions

Engineering Polymers

Performance Resins

Advanced Solutions

Water Solutions

Safety Solutions

Shelter Solutions

Organic Sales(1) +23%

Weakening of USD, primarily against Euro and Yuan

1) Organic sales is a non-GAAP measure. Refer to slide 17 for definitions and additional information.2) Corporate reflects sales of the Clean Technologies, Biomaterials and Solamet® businesses. The Company has signed definitive agreements to divest the Clean Technologies

and Biomaterials businesses. The Solamet® business was divested on June 30, 2021. In addition, Corporate in prior year reflects results of the trichlorosilane businessthrough its divestiture in third quarter 2020.

$3,289

Page 7: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

2Q 2020 Adjusted EPS(1) Volumes Share

CountOther

(Currency, Productivity)

Absence of PY Idle Facility

Costs(mainly M&M)

Other Below the Line

2Q 2021 Adjusted EPS(1)

$0.48 $1.06

Segment Results +$0.42

› Interest +$0.06› Base tax rate -$0.04› Other +$0.02$0.31

2Q 2021 Adjusted EPS(1) Bridge

7(1) Adjusted EPS is a non-GAAP measures. Refer to slide 17 for definitions and additional information.

$0.31

Portfolio (including PY Customer Settlement in

Corporate)

› N&B exchange offer and share repurchases +$0.29

Page 8: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

Net Sales $16.45 - $16.55 billion $15.7 - $15.9 billion

Operating EBITDA(1) $4.21 - $4.26 billion $3.98 - $4.08 billion

Adjusted EPS(1) $4.24 to $4.30 $3.60 to $3.75 (1)

Net Sales $4.18 - $4.23 billion

Operating EBITDA(1) $1.06 - $1.08 billion

Adjusted EPS(1) $1.11 to $1.13

8(1) Operating EBITDA and Adjusted EPS are non-GAAP measures. Refer to slide 17 for definitions and additional information. Previous FY21 Guidance for Adjusted EPS excludes

only DWDP Merger-related intangible asset amortization. 3Q21 and Revised FY21 Guidance for Adjusted EPS excludes all intangible asset amortization.(2) The Company has signed definitive agreements to divest the Clean Technologies and Biomaterials businesses, subject to regulatory approval and customary closing conditions.

RevisedFY 2021

Guidance

PreviousFY 2021

Guidance

3Q-2021

Guidance

3Q and FY 2021 Guidance

› Guidance revised to reflect the following (refer to Slide 13 for additional information on FY guidance revisions):› Strong 1H’21 results and expected improvement in 2H’21 compared to previous estimates.› Acquisition of Laird Performance Materials completed on July 1, 2021.› Divestiture of Solamet® business on June 30, 2021.› Retroactive reporting change to adjusted EPS(1) effective with third quarter 2021 reporting which will exclude the

impact of all intangible amortization expense (benefit of reporting change to FY21 estimated at $0.27 per share). › Full year financial results of Clean Technologies and Biomaterials included in the 2021 estimates above(2)

Page 9: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

2030 Sustainability Strategy

Low GWP Froth Pak™ innovation launched, awarded ACC Sustainability Leadership award for reduced GHG emissions

Advanced water security, availability and quality worldwide through our expanded filtration and purification technologies portfolio

Affirmed our commitment to address climate change as a member of CEO Climate Dialogue

Produced more than 100 million DuPont personal protective equipment garments last year to fight COVID-19

Reinvigorated our DE&I commitment by appointing a VP of DE&I

$30 million committed: › $10 million over next

10 years to address racism and equality

› $20 million in the Black Economic Development Fund

Achieved zero injuries and/or illnesses at ~80% of DuPont sites

› 31 sites earned Responsible Care® Facility Safety Awardsfrom ACC

Partnered with charity: water to help prevent the spread of COVID-19 in vulnerable communities

Donated nearly 2 million itemsto families in need through Habitat for Humanity International partnership

5 of 12 board members add gender, racial, or ethnic diversity

Added ESG Modifier to annual short-term incentive program

ESG HighlightsEnvironmental

Social

Governance

Enable our purpose by creating long-term business value for stakeholders

Nine goals in threethemes: › Innovate now› Protect now› Empower now

› W&P Water Solutions launches B-Free™ pre-treatment technology critical to high volume water filtration.

› M&M BETASEAL™ adhesives deliver critical design and performance benefits required for Electric Vehicles.

2021 Sustainability Report

Our innovations deliver solutions for sustainable development

Reduced ownership threshold for stockholders to call a special meeting 9

Page 10: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

Appendix

Page 11: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

Net Sales(Organic Change

v. 2Q’20)

Operating EBITDA

(Change v. 2Q’20)

Operating EBITDA Margin(1)

(Change v. 2Q’20)

Segment Highlights

Electronics & Industrial

$1,320 million+17%

$424 million+26%

32.1%+190 bps

• Double-digit volume growth in all three lines of business• Volume gains drove earnings

Water & Protection

$1,412 million+11%

$352 million4%

24.9%(240) bps

• Ongoing strength in residential construction and DIY applications along with continued recovery in industrial, oil & gas and automotive markets increased sales; partially offset by declines for protective garments vs. year-ago peak period and for water technologies due to logistics

• Volume growth mostly offset by higher raw materials and logistics, along with weaker Tyvek® production

Mobility & Materials

$1,270 million+55%

$294 million+1378%

23.1%+2600 bps

• Continued recovery in global automotive market drove significant volume growth

• Absence of ~$130 million in idle facility charges from PY, higher volumes and pricing gains drove earnings and margin

Segment Results – 2Q 2021

111) Operating EBITDA margin calculated as total operating EBITDA divided by net sales.

Corporate reflects the results of the Clean Technologies, Biomaterials and Solamet® businesses, as well as other general corporate expenses. The Company has signed definitive agreements to divest the Clean Technologies and Biomaterials businesses. The Solamet® business was divested on June 30, 2021. In addition, Corporate in the prior year reflects results of the trichlorosilane business and equity earnings associated with the Hemlock Semiconductor joint venture through their divestitures in third quarter 2020.

Page 12: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

3Q 2021 End-Market Expectations

12

Key Drivers

• Similar demand trends expected to continue in all three lines of business

• Continued strong demand in semiconductor, healthcare and display markets

• Ongoing recovery in industrial end-markets

• Integration of Laird Performance Materials within Interconnect Solutions

• Expect global auto builds to be down 3% vs. 3Q 2020; up 6% vs. 2Q 2021 as recovery in vehicle production continues

• Global supply constraints expected to remain for key raw materials

• Electronics & electrical remains healthy despite short-term supply shortages

• North America residential construction & retail DIY demand remains strong; commercial construction continues to improve

• Similar demand trends expected for aramid fibers

• Demand for Tyvek® protective garments shift to traditional industrial base continues

• Demand in Water Solutions remains strong

Segment Electronics & Industrial

Mobility & Materials

Water & Protection

Continuation of raw material and logistics costs headwinds; taking price actions to mitigate impact

Page 13: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

Previous FY21 Guide – Mid

Point(2)

Intangible Amort.

Reporting Change

2Q’21 Beat & FY Raise

Current FY21 Guide – Mid

Point(2)

$4.27

$3.67

FY 2021 Guidance Bridge

13(1) Adjusted EPS and operating EBITDA are non-GAAP measures. Refer to slide 17 for definitions and additional information.(2) Reflect mid-point of FY guidance as reflected on slide 8.

Previous FY21 Guide – Mid

Point(2)

+ Laird PM / - Solamet®

2Q’21 Beat & FY Raise

Current FY21 Guide – Mid

Point(2)

$16,500$15,800

Previous FY21 Guide – Mid

Point(2)

2Q’21 Beat & FY Raise

Current FY21 Guide – Mid

Point(2)

$4,235$4,030

FY21 Sales (in millions) FY21 Operating EBITDA(1) (in millions)

FY21 Adjusted EPS(1) (per share)

+$550 +$150 +$140 +$65

+$0.23 +$0.10 +$0.27

+ Laird PM / - Solamet®

+ Laird PM / - Solamet®

Page 14: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

Additional Modeling Guidance – Full Year 2021

14

Below-the-line estimates:

Base Tax Rate 21% - 22%

D&A(1) ~$1,400 - $1,420 million, pre tax

Intangible Amortization(1) ~$710 - $730 million, pre tax

Interest Expense ~$510 million, pre tax

Exchange (Gains)/Losses ~$40 million, after tax

Non-Controlling Interest ~$30 million, after tax

Share count – diluted(5)

Weighted Average~525 million – 3Q 2021~547 million – FY 2021(6)

1) Includes a preliminary estimated range related to the Laird acquisition which is subject to change.2) General purpose corporate costs reflected within Corporate; excludes operating EBITDA from non-core businesses reflected in Corporate.3) Subject to approval of the DuPont Board of Directors.4) These transaction costs are excluded from Operating EBITDA and Adjusted EPS. Approximately $175 million of these transactions costs relate to the N&B separation and are reflected in discontinued operations in the income statement. 5) Does not assume any additional share repurchases under $1.5B program expiring on June 30, 2022.6) Weighted average share count which includes approximately 735 million shares that were outstanding in the month of January 2021 prior to the exchange offer.

Items included in Operating EBITDA:

R&D ~$600 - $650 million

Corporate costs (2)

(excludes Op. EBITDAfrom non-core businesses)

~$135 million

Other Cash Uses:

Capital Expenditures ~$900 million

Dividends(3) ~$640 million

Transaction Costs(4) ~$250 - $275 million

Page 15: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

DuPont Electronics & Industrial• Semiconductor Technologies

September 22, 2021

Save the Date: Line of Business Teach In Session

Upcoming Events

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Page 16: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

Safe Harbor StatementOverview Effective August 31, 2017, E. I. du Pont de Nemours and Company ("EID") and The Dow Chemical Company ("TDCC") each merged with subsidiaries of DowDuPont Inc. (n/k/a "DuPont”) and, as a result, EID and TDCC became subsidiaries of the Company (the "DWDP Merger"). On April 1, 2019, the Company completed the separation of the materials science business through the spin-off of Dow Inc., (“Dow”) including Dow’s subsidiary The Dow Chemical Company (the “Dow Distribution”). On June 1, 2019, the Company completed the separation of the agriculture business through the spin-off of Corteva, Inc. (“Corteva”) including Corteva’ssubsidiary E. I. du Pont de Nemours and Company (“EID”), (the “Corteva Distribution and together with the Dow Distribution, the “DWDP Distributions”).

On February 1, 2021, the Company completed the divestiture of the Nutrition & Biosciences (“N&B”) business to International Flavors & Fragrance Inc. (“IFF”) in a Reverse Morris Trust transaction (the “N&B Transaction”) that resulted in IFF issuing shares to DuPont stockholders. The results of operations of DuPont for all periods presented reflect the historical financial results of N&B as discontinued operations, as applicable. The cash flows related to N&B have not been segregated and are included in the Consolidated Statements of Cash Flows for the applicable periods.

In addition, the Company includes in discontinued operations activity related to the indemnification obligations pertaining to EID legacy liabilities including eligible PFAS costs under the cost sharing arrangement (the “MOU”) by and between DuPont, Corteva and The Chemours Company.

On July 1, 2021, DuPont completed the previously announced acquisition of the Laird Performance Materials business, (the “Laird PM Acquisition”).

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 of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "target," and similar expressions and variations or negatives of these words.

Forward-looking statements address matters that are, to varying degrees, uncertain and subject to risks, uncertainties and assumptions, many of which that are beyond DuPont's control, that could cause actual results to differ materially from those expressed in any forward-looking statements. Forward-looking statements are not guarantees of future results. Some of the important factors that could cause DuPont's actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to: (i) the ability to achieve expected benefits, synergies and operating efficiencies in connection with the Laird PM Acquisition within the expected time frames or at all or to successfully integrate the Laird Performance Materials business; (ii) ability to achieve anticipated tax treatments in connection with the N&B Transaction, Laird PM Acquisition or the DWDP Distributions; (iii) changes in relevant tax and other laws; (iv) indemnification of certain legacy liabilities of EID in connection with the Corteva Distribution; (v) risks and costs related to the performance under and impact of the cost sharing arrangement by and between DuPont, Corteva and The Chemours Company related to future eligible PFAS costs; (vi) failure to effectively manage acquisitions, divestitures, alliances, joint ventures and other portfolio changes, including meeting conditions under the Letter Agreement entered in connection with the Corteva Distribution, related to the transfer of certain levels of assets and businesses; (vii) uncertainty as to the long-term value of DuPont common stock; (viii) risks and uncertainties related to the novel coronavirus (COVID-19) and the responses thereto (such as voluntary and in some cases, mandatory quarantines as well as shut downs and other restrictions on travel and commercial, social and other activities) on DuPont’s business, results of operations, access to sources of liquidity and financial condition which depend on highly uncertain and unpredictable future developments, including, but not limited to, the duration and spread of the COVID-19 outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions resume; and (ix) other risks to DuPont's business, operations; each as further discussed in detail in and results of operations as discussed in DuPont’s annual report on Form 10-K for the year ended December 31, 2020 and its subsequent reports on Form 10-Q and Form 8-K. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business or supply chain disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on DuPont’s consolidated financial condition, results of operations, credit rating or liquidity. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. DuPont assumes no obligation to publicly provide revisions or updates to any forward-looking statements whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

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Page 17: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

Safe Harbor StatementCautionary Statement About Forward-Looking Statements, continued

Non-GAAP Financial Measures:

This earnings release 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 measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company, including allocating resources. DuPont’s management believes these non-GAAP financial measures are useful to investors because they provide additional information related to the ongoing performance of DuPont to offer a more meaningful comparison related to future results of operations. These non-GAAP financial measures supplement disclosures prepared in accordance with U.S. GAAP, and should not be viewed as an alternative to U.S. GAAP. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Reconciliations for these non-GAAP measures to U.S. GAAP are provided in the Selected Financial Information and Non-GAAP Measures in the accompanying earnings news release and on the Investors section of the Company's website. Non-GAAP measures included in this release are defined below. The Company has not provided forward-looking U.S. GAAP financial measures or a reconciliation of forward-looking non-GAAP financial measures to the most comparable U.S. GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of certain future events. These events include, among others, the impact of portfolio changes, including asset sales, mergers, acquisitions, and divestitures; contingent liabilities related to litigation, environmental and indemnifications matters; impairments and discrete tax items. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP results for the guidance period.

Adjusted earnings per common share from continuing operations - diluted ("Adjusted EPS"), is defined as earnings per common share from continuing operations - diluted, excluding the after-tax impact of significant items, after-tax impact of amortization expense associated with intangibles acquired as part of the DWDP Merger and the after-tax impact of non-operating pension / other post employment benefits (“OPEB”) benefits / charges. Although amortization of EID intangibles acquired as part of the DWDP Merger is excluded from these non-GAAP measures, management believes it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized.

Beginning July 1, 2021, Adjusted EPS will be defined as earnings per common share from continuing operations - diluted, excluding the after-tax impact of significant items, after-tax impact of amortization expense of intangibles and the after-tax impact of non-operating pension / OPEB. Management estimates amortization expense in 2021 associated with intangibles to be between $710 million and $730 million on a pre-tax basis, or approximately $1.00 to $1.05 per share. The Company will report financial results under this new definition following the second quarter 2021. Q3 2021 and Revised 2021 Guidance within this presentation reflects this reporting change to Adjusted EPS.

Operating EBITDA, is defined as earnings (i.e. income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, adjusted to exclude significant items. Operating EBITDA margin is calculated as operating EBITDA divided by net sales. Operating EBITDA leverage is calculated as the year-over-year percentage change in operating EBITDA divided by the year-over-year percentage change in net sales. Incremental margin calculated as year-over-year dollar change in operating EBITDA divided by year-over-year dollar change in net sales.

Significant items are items that arise outside the ordinary course of the Company’s business that management believes may cause misinterpretation of underlying business performance, both historical and future, based on a combination of some or all of the item’s size, unusual nature and infrequent occurrence. Management classifies as significant items certain costs and expenses associated with integration and separation activities related to transformational acquisitions and divestitures as they are considered unrelated to ongoing business performance.

Core results reflects total company results excluding activity related to the divested and to-be divested businesses included within Corporate. Organic Sales is defined as net sales excluding the impacts of currency and portfolio.

Free cash flow is defined as cash provided by/used for operating activities less capital expenditures. As a result, free cash flow represents cash that is available to the Company, after investing in its asset base, to fund obligations using the Company's primary source of liquidity, cash provided by operating activities. Management believes free cash flow, even though it may be defined differently from other companies, is useful to investors, analysts and others to evaluate the Company's cash flow and financial performance, and it is an integral measure used in the Company's financial planning process.

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Page 18: DuPont 2Q 2021 Earnings Conference Call...2Q21 financial performance • Broad-based organic growth driven by continued strength and recovery in key end-markets • Margin expansion

© 2020 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 a representation that any recommendations, use or resale of the product or process described herein is permitted and complies

with the rules or regulations of any countries, regions, localities, etc., or does not infringe upon patents or other intellectual property rights of third parties.

The information provided herein is based on data DuPont believes to be reliable, to the best of its knowledge and is provided at the request of and without charge to our customers. Accordingly,DuPont does not guarantee or warrant such information and assumes no liability for its use. If this product literature is translated, the original English version will control and DuPont hereby

disclaims responsibility for any errors caused by translation. This document is subject to change without further notice.

© 2021 DuPont de Nemours, Inc. All rights reserved.

DuPont™, the DuPont Oval Logo, and all products, unless otherwise noted, denoted with ™, ℠ or ® are trademarks, service marks or registered trademarks of affiliates of DuPont de Nemours, Inc.