Summary of DuPont's Investor Day 2025 Company Overview - **Company**: DuPont - **Event**: Investor Day 2025 - **Key Themes**: Transformation, innovation, and acceleration [1][2] Financial and Strategic Highlights - **Pro Forma Basis**: Presentation based on the new DuPont after the spin-off of Delrin and divestiture of the Aramids business [2] - **New Reporting Segments**: Focus on healthcare, water technologies, and diversified industrials [2] - **Timeline**: Spin-off expected on November 1, 2025, and divestiture completion in Q1 2026 [2] Key Messages from Leadership 1. **Transformation Execution**: Focus on portfolio and operational transformation to reduce complexity and cyclicality [7] 2. **Excellence Focus**: Codifying innovation excellence and operational excellence into a comprehensive business system [8] 3. **Growth Acceleration**: Half of the businesses positioned in markets growing above GDP, with continued investment in these areas [8] 4. **Capital Allocation**: Disciplined model to deliver strong returns for shareholders [9] 5. **Cultural Enhancement**: Building a culture focused on growth and continuous improvement [9] Financial Performance and Projections - **Revenue Growth**: Divestiture of the Aramids business expected to increase revenue growth by 50 basis points and margin by 90 basis points [10] - **Long-term Targets**: Projecting 3-4% organic growth CAGR, margin expansion of 150-200 basis points by 2028, and EPS growth of 8-10% [25][26] Business Segments Healthcare and Water Technologies - **Sales Contribution**: Healthcare and water technologies each represent about 25% of sales [13] - **Market Position**: Leading position in medical devices, biopharma, and water filtration [34][42] - **Growth Drivers**: Aging population, chronic diseases, and increasing demand for clean water [38][46] - **Expected EBITDA Margin**: Approximately 30% for the Healthcare and Water segment [34] Diversified Industrials - **Sales Contribution**: Represents about 50% of DuPont's portfolio [14] - **Market Leadership**: Strong presence in construction, automotive, aerospace, and industrial sectors [55] - **Sales and Margin**: $3.6 billion business with a 22% operating margin [55] - **Growth Opportunities**: Focus on energy efficiency, sustainability, and innovation in product offerings [62][63] Innovation and R&D - **Investment Focus**: Emphasis on innovation to drive growth, with a vitality index of 30% [16] - **New Product Sales**: 40% growth and 60% renew, with plans to shift towards more growth [16] - **Customer Collaboration**: Strong partnerships with leading medical device and biopharma companies [41] Market Opportunities - **Addressable Market**: Combined addressable market of over $40 billion [14] - **Sustainability Trends**: Increasing focus on sustainability and regulatory requirements driving growth in water technologies [46][48] Conclusion - **Commitment to Excellence**: DuPont aims to enhance shareholder value through disciplined capital decisions and consistent delivery of growth and margin expansion [26][27] - **Future Outlook**: Positioned to lead in innovation and sustainability, with a strong focus on operational excellence and customer collaboration [69][70]

Core Viewpoint - DuPont has lowered its full-year sales guidance to reflect the impact of the planned spin-off of its electronics division and the divestiture of its aramid business [1] Group 1 - The company now expects full-year sales to be $6.87 billion, down from a previous forecast of $12.85 billion [1] - For the third quarter, DuPont anticipates net sales of $2.98 billion and adjusted earnings per share of $1.06, compared to prior expectations of $3.32 billion and $1.15 respectively [1]

Investor Day 2025 TM Transform. Innovate. Accelerate. 2025 INVESTOR DAY 1 Welcome and Opening Remarks Ann Giancristoforo Vice President, Investor Relations 2 2 2025 INVESTOR DAY 2025 INVESTOR DAY Forward looking statements On January 15, 2025, DuPont de Nemours, Inc. ("DuPont", or after the completion of the Intended Electronics Separation, "New DuPont") announced it is targeting November 1, 2025 to complete the intended separation of its Electronics business (the "Intended Electronics Separation") by way o ...

Core Viewpoint - DuPont has revised its 2025 net sales forecast to approximately $6.87 billion, reflecting the planned spin-off of its electronics unit and the divestiture of its Aramids business [1][2] Group 1: Financial Forecasts - The company lowered its third-quarter adjusted profit forecast to $1.06 per share from an earlier forecast of $1.15 per share due to the sale of the Aramids business [2] - Previously, DuPont had forecasted 2025 net sales of $12.85 billion, indicating a significant reduction in expectations [2] Group 2: Business Divestitures - DuPont plans to sell its heat-resistant fiber business, Aramids, which includes brands like Kevlar, to Arclin for $1.8 billion as part of a broader reorganization [2] - The Aramids unit will be treated as discontinued operations starting in the third quarter [1] Group 3: Future Updates - The company will provide an update on its full-year adjusted profit forecast during its third-quarter earnings call as it finalizes its capital structure [3]

Core Insights - Qnity Electronics, Inc. is positioned as a leading technology solutions provider in the rapidly expanding semiconductor market [1] - The company offers comprehensive product integration across the semiconductor value chain, including chip manufacturing, advanced packaging, and thermal management solutions [1] Company Overview - Qnity Electronics, Inc. is recognized for its end-to-end horizontal product integration in the semiconductor industry [1] - The company is set to host its inaugural Investor Day, indicating a commitment to engaging with investors and stakeholders [1]

Group 1 - The core message of the article is DuPont's strategic transformation towards a simplified and focused portfolio that aligns with secular growth trends, aiming for operational and commercial excellence to drive growth, margin expansion, and strong free cash flow [1] - DuPont has outlined medium-term financial targets and has recast its 2025 financial guidance to account for the impact of discontinued operations [1] - The company is set to spin off its electronics business, Qnity Electronics, Inc., on November 1, 2025, as part of its portfolio restructuring [1]

Core Insights - DuPont has expanded its use of ISNetworld to its operations in Reynosa, Mexico, building on an existing partnership with ISN in the United States [1] - The expansion aims to improve contractor onboarding and ongoing engagement, ensure compliance with REPSE regulations, and enhance jobsite safety [1] Company Summary - ISN is recognized as the global leader in contractor and supplier information management services [1] - DuPont is leveraging ISNetworld to streamline its operations and compliance processes in Mexico [1]

Core Viewpoint - DuPont de Nemours, Inc. is amending its exchange offers for existing notes to facilitate the issuance of new notes, while also soliciting consents for proposed amendments to the existing indenture governing these notes [1][2]. Exchange Offers - DuPont is offering to exchange its outstanding 4.725% Notes due 2028, 5.319% Notes due 2038, and 5.419% Notes due 2048 for new notes with the same interest rates and maturities [1]. - The exchange offers are set to expire on September 30, 2025, unless extended or terminated [9]. Consent Solicitation - As of September 15, 2025, the necessary consents for the proposed amendments regarding the 2028 Notes have been received, leading to the execution of a supplemental indenture [2]. - The proposed amendments for the 2028 Notes will only become operative once the new notes are issued and the applicable early participation payment is made [2]. Consideration Structure - Eligible holders of existing notes can receive an early participation payment of $50 in new notes and $2.50 in cash for each $1,000 principal amount of existing notes tendered before the early participation date [3]. - The total consideration for each $1,000 principal amount of existing notes validly tendered includes $950 in new notes plus the early participation payment [3][4]. Proration and Sublimits - If the requisite consents for the 2038 and 2048 Notes are not received, DuPont plans to waive the minimum tender condition and accept existing notes up to specified sublimits: $400 million for the 2038 Notes and $860 million for the 2048 Notes [6]. - In cases where the tendered amount exceeds the sublimits, a pro rata basis will be used to determine the amount accepted for exchange [6][7]. Redemption Plans - If the principal amount of either the 2038 or 2048 Notes tendered is less than the applicable sublimit, DuPont intends to redeem additional amounts of new or outstanding 2028 Notes [8]. Additional Information - Documents related to the exchange offers will be distributed only to eligible holders who meet specific criteria [9]. - The new notes have not been registered under the Securities Act and may not be offered or sold in the U.S. except under certain exemptions [10].

Core Insights - DuPont de Nemours, Inc. has a market capitalization of $31.9 billion and operates in specialty materials and chemicals, serving various markets including electronics, industrial, healthcare, water, and protection [1] - The company is categorized as a large-cap stock due to its valuation exceeding $10 billion, with strengths in intellectual property, strong margins, and exposure to high-growth markets [2] Stock Performance - DuPont's shares have declined 13.4% from a 52-week high of $90.06 reached on September 27, 2024, and have decreased 12.4% over the past three months, underperforming the Materials Select Sector SPDR Fund's 5.2% rise [3] - Year-to-date, DuPont's stock is up 2.3%, lagging behind the XLB's 10.1% return, and has dipped 2.4% over the past 52 weeks compared to XLB's 1.8% rise [4] Recent Developments - On August 29, DuPont announced a definitive agreement to sell its Aramids business, including Kevlar® and Nomex®, to Arclin for approximately $1.8 billion, expected to close in Q1 2026 pending regulatory approvals [5] - The transaction is anticipated to provide DuPont with about $1.2 billion in pre-tax cash proceeds, a $300 million note receivable, and a 17.5% equity stake in the future Arclin entity valued at roughly $325 million at closing [5] - Management indicated that this transaction enhances DuPont's strategic focus and growth profile, but the market reaction was negative, with shares dipping 1.5% in the following trading session [6]

Industry Overview - The Zacks Chemicals Diversified industry is facing headwinds due to demand weakness in key markets such as consumer durables and building & construction, exacerbated by inflationary pressures in Europe and a slow recovery in China [1][4][5] - The industry includes manufacturers of basic chemicals, plastics, specialty chemicals, and agricultural chemicals, serving various end markets like automotive, construction, and electronics [3] Demand Challenges - Demand weakness is particularly pronounced in the building & construction and consumer electronics markets, with elevated borrowing costs and inflation impacting residential construction and consumer behavior [4] - In China, a slower economic recovery and a weak real estate market are contributing to reduced chemical demand, while Europe is experiencing similar challenges due to high inflation and the ongoing Russia-Ukraine war [5] Strategic Responses - Companies like DuPont, Albemarle, and Methanex are implementing strategic measures such as cost-cutting, productivity improvements, and aggressive price hikes to navigate the challenging environment [2][6] - These actions aim to sustain margins amid rising costs and demand challenges [6] Industry Performance - The Zacks Chemicals Diversified industry has underperformed the S&P 500 and the broader Zacks Basic Materials sector, losing 21% over the past year compared to the S&P 500's gain of 18.4% [9] - The industry's current valuation, based on the trailing 12-month EV/EBITDA ratio, is 19.29X, which is below the S&P 500's 23.02X but above the sector's 16.31X [12] Company Highlights - **Methanex Corporation (MEOH)**: The world's largest supplier of methanol, benefiting from healthy demand and strategic acquisitions to enhance production capacity and shareholder returns [17][18] - **DuPont de Nemours, Inc. (DD)**: Focused on innovation and growth in high-demand markets, with a projected earnings growth rate of around 7.9% for 2025 and ongoing cost synergy initiatives [20][22] - **Albemarle Corporation (ALB)**: Positioned to capitalize on the growing battery-grade lithium market, with expected earnings growth of 20.9% for 2025 and strategic investments in high-return projects [23][25]