| Geographical Segment | Q4 2022 (USD million) | Q1 2023 (USD million) | Q2 2023 (USD million) | Q3 2023 (USD million) | Q4 2023 (USD million) | Q1 2024 (USD million) | Q2 2024 (USD million) | Q3 2024 (USD million) |
|----------------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|
| U.S. & Canada        | **1,066**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:13]**        | **1,023**  **[0001666700-23-000057_exhibit991enrschedules-1q23.htm:11]**        | **1,045**  **[0001666700-23-000079_exhibit991enrschedules-2q23.htm:14]**       | **1,093**  **[0001666700-23-000087_dd-20230930.htm:17]**        | **1,024**  **[0001666700-24-000005_exhibit991enrschedules-4q23.htm:18]**        | **1,053**  **[0001666700-24-000011_exhibit991enrschedules-1q24.htm:13]**        | **1,127**  **[0001666700-24-000028_exhibit991enrschedules-2q24.htm:15]**        | **1,112**  **[0001666700-24-000033_exhibit991enrschedules-3q24.htm:15]**        |
| EMEA                 | **528**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:13]**          | **582**  **[0001666700-23-000057_exhibit991enrschedules-1q23.htm:11]**          | **585**  **[0001666700-23-000079_exhibit991enrschedules-2q23.htm:14]**         | **535**  **[0001666700-23-000087_dd-20230930.htm:17]**          | **501**  **[0001666700-24-000005_exhibit991enrschedules-4q23.htm:18]**          | **544**  **[0001666700-24-000011_exhibit991enrschedules-1q24.htm:13]**          | **550**  **[0001666700-24-000028_exhibit991enrschedules-2q24.htm:15]**          | **538**  **[0001666700-24-000033_exhibit991enrschedules-3q24.htm:15]**          |
| Asia Pacific         | **1,400**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:13]**        | **1,293**  **[0001666700-23-000057_exhibit991enrschedules-1q23.htm:11]**        | **1,350**  **[0001666700-23-000079_exhibit991enrschedules-2q23.htm:14]**       | **1,302**  **[0001666700-23-000087_dd-20230930.htm:17]**        | **1,246**  **[0001666700-24-000005_exhibit991enrschedules-4q23.htm:18]**        | **1,216**  **[0001666700-24-000011_exhibit991enrschedules-1q24.htm:13]**        | **1,368**  **[0001666700-24-000028_exhibit991enrschedules-2q24.htm:15]**        | **1,411**  **[0001666700-24-000033_exhibit991enrschedules-3q24.htm:15]**        |
| Latin America        | **110**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:13]**          | **120**  **[0001666700-23-000057_exhibit991enrschedules-1q23.htm:11]**          | **114**  **[0001666700-23-000079_exhibit991enrschedules-2q23.htm:14]**         | **128**  **[0001666700-23-000087_dd-20230930.htm:17]**          | **127**  **[0001666700-24-000005_exhibit991enrschedules-4q23.htm:18]**          | **118**  **[0001666700-24-000011_exhibit991enrschedules-1q24.htm:13]**          | **126**  **[0001666700-24-000028_exhibit991enrschedules-2q24.htm:15]**          | **131**  **[0001666700-24-000033_exhibit991enrschedules-3q24.htm:15]**          |
| **Total Net Sales**  | **3,104**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:13]**        | **3,018**  **[0001666700-23-000057_exhibit991enrschedules-1q23.htm:11]**        | **3,094**  **[0001666700-23-000079_exhibit991enrschedules-2q23.htm:14]**       | **3,058**  **[0001666700-23-000087_dd-20230930.htm:17]**        | **2,898**  **[0001666700-24-000005_exhibit991enrschedules-4q23.htm:18]**        | **2,931**  **[0001666700-24-000011_exhibit991enrschedules-1q24.htm:13]**        | **3,171**  **[0001666700-24-000028_exhibit991enrschedules-2q24.htm:15]**        | **3,192**  **[0001666700-24-000033_exhibit991enrschedules-3q24.htm:15]**        |

f3930ccf9f995dd35be6243601936d77984b0f76742f11d0e28e752449984939

| Segment / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Electronics & Industrial** ($ million) | **1,343**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:2]**  | **1,296**  **[0001666700-23-000060_dd-20230331.htm:12]**  | **1,312**  **[0001666700-23-000082_dd-20230630.htm:15]**  | **1,368**  **[0001666700-23-000087_dd-20230930.htm:17]**  | **1,361**  **[0001666700-24-000005_exhibit991enrschedules-4q23.htm:3]**  | **1,365**  **[0001666700-24-000013_dd-20240331.htm:15]**  | **1,508**  **[0001666700-24-000031_dd-20240630.htm:14]**  | **1,551**  **[0001666700-24-000036_dd-20240930.htm:16]**  |
| **Water & Protection** ($ million) | **1,497**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:2]**  | **1,449**  **[0001666700-23-000060_dd-20230331.htm:12]**  | **1,494**  **[0001666700-23-000082_dd-20230630.htm:15]**  | **1,413**  **[0001666700-23-000087_dd-20230930.htm:17]**  | **1,537**  **[DD_3371989_4]**  | **1,291**  **[0001666700-24-000013_dd-20240331.htm:15]**  | **1,391**  **[0001666700-24-000031_dd-20240630.htm:14]**  | **1,382**  **[0001666700-24-000036_dd-20240930.htm:16]**  |
| **Corporate & Other** ($ million) | **264**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:13]**  | **273**  **[0001666700-23-000060_dd-20230331.htm:12]**  | **288**  **[0001666700-23-000082_dd-20230630.htm:15]**  | **277**  **[0001666700-23-000087_dd-20230930.htm:17]**  | N/A  **[0001666700-24-000008_dd-20231231.htm:141]**  | **275**  **[0001666700-24-000013_dd-20240331.htm:15]**  | **272**  **[0001666700-24-000031_dd-20240630.htm:14]**  | **259**  **[0001666700-24-000036_dd-20240930.htm:16]**  |
| **Total Net Sales** ($ million) | **3,104**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:13]**  | **3,018**  **[0001666700-23-000060_dd-20230331.htm:12]**  | **3,094**  **[0001666700-23-000082_dd-20230630.htm:15]**  | **3,058**  **[0001666700-23-000087_dd-20230930.htm:17]**  | **2,898**  **[0001666700-24-000005_exhibit991enrschedules-4q23.htm:1]**  | **2,931**  **[0001666700-24-000013_dd-20240331.htm:15]**  | **3,171**  **[0001666700-24-000031_dd-20240630.htm:14]**  | **3,192**  **[0001666700-24-000036_dd-20240930.htm:16]**  |

095b014fa3066c7f690c6d2c17cad105dd5a552e6d616ef226b0d96e282defdc

| Quarter       | Electronics & Industrial Volume Change (%) | Water & Protection Volume Change (%) |
|---------------|--------------------------------------------|--------------------------------------|
| Q4 2022       | **-5%**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:2]**                               | **0%**  **[0001666700-23-000003_exhibit991enrschedules-4q22.htm:2]**                         |
| Q1 2023       | **-15%**  **[0001666700-23-000060_dd-20230331.htm:40]** **[DD_3248565_4]** **[0001666700-23-000057_exhibit991enrschedules-1q23.htm:11]**                      | **-2%**  **[0001666700-23-000060_dd-20230331.htm:41]** **[0001666700-23-000057_exhibit991enrschedules-1q23.htm:2]**                    |
| Q2 2023       | **-12%**  **[0001666700-23-000082_dd-20230630.htm:47]** **[0001666700-23-000079_exhibit991enrschedules-2q23.htm:1]** **[DD_3266882_3]**                      | **-4%**  **[0001666700-23-000082_dd-20230630.htm:49]** **[0001666700-23-000079_exhibit991enrschedules-2q23.htm:2]** **[DD_3384428_4]**              |
| Q3 2023       | **-12%**  **[0001666700-23-000087_dd-20230930.htm:49]** **[0001666700-23-000085_exhibit991enrschedules-3q23.htm:1]** **[0001666700-23-000087_dd-20230930.htm:44]**                   | **-9%**  **[0001666700-23-000087_dd-20230930.htm:51]**                       |
| Q4 2023       | **-5%**  **[0001666700-24-000005_exhibit991enrschedules-4q23.htm:3]**                              | **-15%**  **[0001666700-24-000005_exhibit991enrschedules-4q23.htm:4]**                      |
| Q1 2024       | **-1%**  **[0001666700-24-000013_dd-20240331.htm:46]** **[0001666700-24-000011_exhibit991enrschedules-1q24.htm:13]** **[0001666700-24-000013_dd-20240331.htm:43]**                    | **-10%**  **[0001666700-24-000013_dd-20240331.htm:47]**                      |
| Q2 2024       | **10%**  **[0001666700-24-000031_dd-20240630.htm:49]** **[0001666700-24-000028_exhibit991enrschedules-2q24.htm:0]**                         | **-4%**  **[0001666700-24-000031_dd-20240630.htm:51]** **[0001666700-24-000028_exhibit991enrschedules-2q24.htm:1]**                  |
| Q3 2024       | **11%**  **[0001666700-24-000036_dd-20240930.htm:53]** **[0001666700-24-000033_exhibit991enrschedules-3q24.htm:1]**                         | **0%**  **[0001666700-24-000033_exhibit991enrschedules-3q24.htm:1]**                        |

e34fbcd5498d7053d939df3f72990bca836417ab9ce4680c950c0946853a6347

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

30e63ac861bb2043875e423d476ca00c2e8364173637d05f41a3cc672f00e5aa

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

5f1fd7e2e8a90b1c661e4073864a467586976554ba4961358b0ca97c8eb67782

DuPont is a global innovation leader that provides technology-based materials and solutions across various industries, including electronics, transportation, construction, water, healthcare, and worker safety **[0001666700-24-000011_exhibit991enrschedules-1q24.htm:3]** **[0001193125-24-088290_d46577ddef14a.htm:3]**. The company operates primarily through two segments: Electronics & Industrial, and Water & Protection **[0001666700-24-000008_dd-20231231.htm:190]**. DuPont's diverse product lines and strategic market presence enable it to maintain a robust revenue stream, with the Electronics & Industrial segment being a major contributor to its financial performance **[DD_3390666_2]** **[0001193125-24-145041_d650562dex992.htm:1]**.

1. **Electronics & Industrial** - Offers product lines such as Semiconductor Technologies, Interconnect Solutions, and Industrial Solutions, serving applications in integrated circuit fabrication, printed circuit boards, and industrial finishing **[0001666700-24-000008_dd-20231231.htm:12]**.
   - **Semiconductor Technologies** - Provides materials and solutions for integrated circuit fabrication.
   - **Interconnect Solutions** - Supplies products for printed circuit boards.
   - **Industrial Solutions** - Delivers materials for industrial finishing applications.

2. **Water & Protection** - Focuses on providing innovative engineered products and integrated systems for industries like worker safety, water purification, and building materials **[0001666700-24-000008_dd-20231231.htm:12]**.
   - **Kevlar®** - Known for its high-strength materials used in protective gear.
   - **Nomex®** - Offers flame-resistant materials for safety applications.
   - **Tyvek®** - Provides protective materials for construction and other industries.

ff1cd21bbce52081ddd06017f428c534d451111f232c85c34f53ae648ca49227

U.S. & Canada

- United States

- Canada

EMEA

Asia Pacific

- China/Hong Kong

Latin America

Total Revenue

22532e49b21afccc53691190cd37b38b336ef6b0a979fb409007aa8ddf963b49

1. Given your anticipation of price givebacks in the shelter segment carrying forward into 2025, and the expectation of low single-digit activity in construction markets due to fewer rate cuts than anticipated, how do you plan to mitigate margin pressures and drive growth in this environment?  **[DD_3405724_9]** 

2. With normal seasonal declines expected in your electronics and construction markets, along with a moderation of growth in China, how confident are you in achieving your Q4 guidance of 6% net sales growth, and what risks could impact these projections?  **[DD_3405724_5]** 

3. As you work to accelerate the separations of your electronics and water businesses closer to the earlier end of the 18- to 24-month timeline, what specific operational challenges do you foresee, and how will you ensure that the new companies are prepared to operate and execute from day one without disrupting current performance?  **[DD_3405724_2]** 

4. The strong margins in the Water & Protection segment were attributed to operational execution, restructuring actions, and productivity improvements. With expectations of some price givebacks in 2025, how sustainable are these margin improvements, and what additional measures will you take to maintain profitability?  **[DD_3405724_25]** 

5. Given that the majority of your cash flow next year will be used for separation costs, with no additional share repurchases or significant CapEx planned, how do you plan to deliver shareholder value in the near term, and are there opportunities to adjust your capital allocation strategy post-separation?   

f28c060062fc0937d9a5d5f4f7105be1d20f9890cb342bfeaff606ea63032dc7

9c123e78939b8e77bf4232c0e10b8bc34fdd55dc485572834ea4e74fa3a7cd76

- **Element Solutions** - Competitor in Electronics & Industrial segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Entegris** - Competitor in Electronics & Industrial segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Henkel** - Competitor in Electronics & Industrial segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **JSR** - Competitor in Electronics & Industrial segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Merck KGaA** - Competitor in Electronics & Industrial segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **MKS Instruments** - Competitor in Electronics & Industrial segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Parker Hannifin** - Competitor in Electronics & Industrial segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **TOK** - Competitor in Electronics & Industrial segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **3M** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Honeywell** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Hydranautics** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Kingspan** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Kolan** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Lanxess** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **LG Chem** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Owens-Corning** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Ecolab** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Avient** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Toray** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Teijin** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .
- **Yantai** - Competitor in Water & Protection segment  **[0001666700-24-000008_dd-20231231.htm:14]** .

9fe06832bab7a59bc5b607cdce9e50dcb8e8a792d3d55c3c9777953288c6a8fe

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Q2 2024

Q3 2024

3cdfc68a2fc74632fc363e2f86b8f9b0e9ebe6e4e592b3932e81ecc26d97c59e

e991543e6caedb38a02aac707c54ee8d3a6ef3c8c78ef7c224bf2deb63190ed5

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  - **Fourth Quarter 2024 Guidance**:
    - **Net Sales**: Approximately **$3.07 billion**  **[DD_3405724_5]** .
    - **Operating EBITDA**: Approximately **$719 million**  **[DD_3405724_5]** .
    - **Adjusted EPS**: Approximately **$0.98 per share**  **[DD_3405724_5]** .
    - Year-over-year growth expectations:
      - **Net Sales Growth**: About **6%**  **[DD_3405724_5]** .
      - **Operating EBITDA Growth**: About **10%**  **[DD_3405724_5]** .
      - **Adjusted EPS Growth**: About **13%**  **[DD_3405724_5]** .
  - **Full Year 2024 Guidance**:
    - **Operating EBITDA**: Approximately **$3.125 billion**  **[DD_3405724_5]** .
    - **Adjusted EPS**: Approximately **$3.90 per share**, reflecting **12% EPS growth** year-over-year  **[DD_3405724_5]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  - **Third Quarter 2024 Guidance**:
    - **Net Sales**: Approximately **$3.2 billion**  **[DD_3395267_4]** .
    - **Operating EBITDA**: Approximately **$815 million**  **[DD_3395267_4]** .
    - **Adjusted EPS**: Approximately **$1.03 per share**  **[DD_3395267_4]** .
  - **Full Year 2024 Guidance**:
    - **Net Sales**: Approximately **$12.45 billion** at the midpoint of the revised range  **[DD_3395267_4]** .
    - **Operating EBITDA**: Approximately **$3.085 billion** at the midpoint of the revised range  **[DD_3395267_4]** .
    - **Adjusted EPS**: Approximately **$3.75 per share** at the midpoint of the revised range  **[DD_3395267_4]** .
    - **Foreign Currency Headwinds**: About **$50 million** in the second half of the year, partly offset by sales from the Donatelle acquisition  **[DD_3395267_4]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  - **Second Quarter 2024 Guidance**:
    - **Net Sales**: Approximately **$3.025 billion**  **[DD_3381826_4]** .
    - **Operating EBITDA**: Approximately **$710 million**  **[DD_3381826_4]** .
    - **Adjusted EPS**: **$0.84** per share  **[DD_3381826_4]** .
  - **Full Year 2024 Guidance**:
    - **Net Sales**: Approximately **$12.25 billion**  **[DD_3381826_4]** .
    - **Operating EBITDA**: Approximately **$2.975 billion**  **[DD_3381826_4]** .
    - **Adjusted EPS**: **$3.60** per share, indicating expected year-over-year earnings growth  **[DD_3381826_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  - **First Quarter 2024 Guidance**:
    - **Net Sales**: Approximately **$2.8 billion**  **[DD_3371989_5]** .
    - **Operating EBITDA**: Approximately **$610 million**  **[DD_3371989_5]** .
  - **Full Year 2024 Guidance**:
    - **Net Sales**: Between **$11.9 billion and $12.3 billion**  **[DD_3371989_5]** .
    - **Operating EBITDA**: Between **$2.8 billion and $3 billion**  **[DD_3371989_5]** .
    - **Adjusted EPS**: In the range of **$3.25 to $3.65 per share**  **[DD_3371989_5]** .
    - **Tax Rate**: Assumes a base tax rate of **23% to 24%**  **[DD_3371989_4]** .
    - **Capital Spending**: Expected to be about **5% of sales**  **[DD_3371989_2]** .
    - **R&D Spend**: Targeted at about **4% of sales**  **[DD_3371989_2]** .
    - **Cash Flow Conversion**: Target of around **90% conversion**  **[DD_3371989_9]** .
    - **Volume Improvement**: Expected in the second half of the year  **[DD_3371989_5]** .
    - **Price-Cost Impact**: Expected to be neutral for the year  **[DD_3371989_5]** .
    - **Restructuring Benefits**: At least two-thirds of the total **$150 million** expected during 2024  **[DD_3371989_3]** .

c9aa8bf642821756e52c1c91d005ea6bdf9ca0684003f437db6bae6f9088a336

967d2ba9e34f37bcbf06c4169afc2a6b5d2feed61bbf047c62d0ba07b714323c

9f81c514d82bbd1f17ee15e340874e0093c4a97ae71c1b49abf1934cf10442c1

**Quarterly guidance for Q4 2024:**
- **Net Sales**: $3.07 billion  **[DD_3405724_5]**  (no prior guidance)  
- **Operating EBITDA**: $719 million  **[DD_3405724_5]**  (no prior guidance)  
- **Adjusted EPS**: $0.98  **[DD_3405724_5]**  (no prior guidance)  
- **Net Sales Growth**: 6%  **[DD_3405724_5]**  (no prior guidance)  
- **Operating EBITDA Growth**: 10%  **[DD_3405724_5]**  (no prior guidance)  
- **Adjusted EPS Growth**: 13%  **[DD_3405724_5]**  (no prior guidance)  

**Annual guidance for FY 2024:**
- **Operating EBITDA**: $3.125 billion  **[DD_3405724_5]**  (raised from $3.085 billion  **[DD_3395267_4]** )  
- **Adjusted EPS**: $3.90  **[DD_3405724_5]**  (raised from $3.75  **[DD_3395267_4]** )  
- **EPS Growth**: 12%  **[DD_3405724_5]**  (no prior guidance)  

a1e61846970d12715f122dbf60efa61120abf76cf109387eabeb04607f8962f1

| Name                | Position                                      | Start Date       | Short Bio                                                                                                                                                                                                 |
|---------------------|-----------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Edward D. Breen     | Executive Chairman and Chief Executive Officer| February 17, 2020| Edward D. Breen has been serving as the Executive Chairman of the Board of Directors since June 1, 2019, and as CEO since February 17, 2020. He was previously CEO of DowDuPont and has held leadership roles at Tyco International, Motorola, and General Instrument Corporation  **[0001193125-24-088290_d46577ddef14a.htm:23]** **[0001193125-23-094064_d341885ddef14a.htm:26]** . |
| Lori D. Koch        | Chief Executive Officer                       | June 1, 2024     | Lori D. Koch has been serving as CEO since June 1, 2024. She was previously the CFO from February 2020 and held various roles within the company, including Vice President of Investor Relations and Corporate Financial Planning & Analysis  **[0001193125-24-145042_d804975ddefa14a.htm:1]** **[0001193125-23-094064_d341885ddef14a.htm:36]** . |
| Antonella B. Franzen| Chief Financial Officer                       | June 1, 2024     | Antonella B. Franzen was appointed as CFO effective June 1, 2024. She previously served as CFO of the Water & Protection segment and held various roles at Johnson Controls International and Tyco International  **[0001193125-24-145042_d804975ddefa14a.htm:1]** **[0001062993-24-011839_xslF345X02/form3.xml:0]** .                          |
| Christopher Raia    | Senior Vice President and Chief Human Resources Officer | March 2021       | Christopher Raia has served as the Senior Vice President and Chief Human Resources Officer since March 2021. He was previously Vice President and Interim Chief Human Resources Officer and has held positions at Newell Brands and Citizens Bank  **[0001193125-24-088290_d46577ddef14a.htm:32]** **[0001193125-23-094064_d341885ddef14a.htm:36]** . |
| Erik T. Hoover      | Senior Vice President and General Counsel     | June 2019        | Erik T. Hoover has served as Senior Vice President and General Counsel since June 2019. He was previously General Counsel for the Specialty Products Division of DowDuPont and has worked at Blank Rome LLP  **[0001193125-24-088290_d46577ddef14a.htm:32]** **[0001193125-23-094064_d341885ddef14a.htm:36]** .                                |
| Steve Larrabee      | Senior Vice President and Chief Information Officer | June 2019        | Steve Larrabee has served as Senior Vice President and CIO since June 2019. He was previously CIO for the Specialty Products Division of DowDuPont and has held roles at Mars, Incorporated  **[0001193125-24-088290_d46577ddef14a.htm:32]** **[0001193125-23-094064_d341885ddef14a.htm:36]** .                                               |
| Jon Kemp            | President, Electronics & Industrial           | August 2019      | Jon Kemp has served as President, Electronics & Industrial since August 2019. He was previously Head of Strategy for the Specialty Products Division of DowDuPont and President of DuPont Electronics & Communications  **[0001193125-24-088290_d46577ddef14a.htm:33]** **[0001193125-23-094064_d341885ddef14a.htm:37]** .                     |
| Leland Weaver       | President, Water & Protection                 | September 2021   | Leland Weaver has served as President, Water & Protection since September 2021. He joined DuPont in 2003 and has held various leadership positions across multiple businesses  **[0001193125-24-088290_d46577ddef14a.htm:33]** **[0001193125-23-094064_d341885ddef14a.htm:37]** .                                                            |

75e00eb65e62131b57273126b45840337d6595d3a573cd1b1487e9869c764aef

| Program Details          | Program 1                  | Program 2                  |
|--------------------------|----------------------------|----------------------------|
| Approval Date            | November 2022  **[0001666700-24-000036_dd-20240930.htm:34]**           | First quarter of 2024  **[0001666700-24-000036_dd-20240930.htm:34]**   |
| End Date/Duration        | Completed in Q1 2024  **[0001666700-24-000036_dd-20240930.htm:34]**    | June 30, 2025  **[0001666700-24-000036_dd-20240930.htm:34]**           |
| Total additional amount  | **$5 billion**  **[0001666700-24-000036_dd-20240930.htm:34]**          | **$1 billion**  **[0001666700-24-000036_dd-20240930.htm:34]**          |
| Remaining authorization  | **$0**  **[0001666700-24-000036_dd-20240930.htm:34]**                  | **$500 million**  **[0001666700-24-000036_dd-20240930.htm:71]**        |
| Details                  | Program completed  **[0001666700-24-000036_dd-20240930.htm:34]**       | Ongoing, may include accelerated share repurchase agreements  **[0001666700-24-000036_dd-20240930.htm:60]** **[0001666700-24-000036_dd-20240930.htm:34]** **[0001666700-24-000031_dd-20240630.htm:32]**  |

58462b9483a4b43189495dba85687af2a0cacec07b698009143c1df78483a0a1

1. **PFAS Liabilities Update**  
   **Q:** What's the status of state AG and PI cases?  
   **A:** Ed Breen explained that two major PFAS-related liabilities remain: state AG cases and personal injury cases. The personal injury cases have been reduced from about **6,000 to 3,000**, mainly involving firefighters exposed to firefighting foam. DuPont's exposure is limited, as they are responsible for only **3% to 7%** of the consortium liability and only one-third of that amount. They aim to settle as much as possible before the spin-off. \[5\], \[6\]

2. **AI-Driven Demand Growth**  
   **Q:** How is AI impacting your Electronics business?  
   **A:** Lori Koch stated that AI acceleration is contributing to recovery in both Semiconductor and Interconnect Solutions businesses. AI currently represents about **$250 million** in sales, with significant growth potential. Advanced nodes require more of their materials, leading to growth **200 to 300 basis points above market**. \[0\], \[3\]

3. **Earnings Guidance and Seasonality**  
   **Q:** Why is EBITDA guidance only up slightly sequentially?  
   **A:** Lori explained that normal seasonality is muted due to recovery and a **$30 million pre-buy** in Q2, which will temper Q3 growth. Guidance reflects a cautious view, although they normally expect a **$50 million to $100 million** lift from Q2 to Q3. The decline from Q3 to Q4 is also muted to about **$50 million** due to continued recovery. \[4\]

4. **Electronics & Industrial Outlook**  
   **Q:** What is the outlook for E&I into 2025?  
   **A:** Lori expects high single-digit growth in E&I heading into **2025**, driven by AI acceleration and a pickup in consumer electronics. Semiconductor utilization rates are projected to be in the **high 70s** by end of 2024, setting up a return to normal patterns. Advanced nodes should reach **low 80s** utilization. \[13\], \[23\]

5. **Water & Protection Destocking**  
   **Q:** Are you seeing improvement from destocking in W&P?  
   **A:** Antonella noted a lift in Q2 in Medical Packaging and Water businesses where destocking had the biggest impact. They expect continued improvement, with overall revenue **relatively flat** in the second half due to muted seasonality and a cautious view on the residential market. Margins are expected to be **flattish to up** moving forward. \[7\], \[8\]

6. **Spin-off Reporting Structure**  
   **Q:** How will reporting change with the spin-off?  
   **A:** Lori stated they intend to report in the new structure prior to the Form 10 filings, targeting early next year. RemainCo will likely have three reportable segments, including a healthcare segment comprising Tyvek, Spectrum, Liveo Biopharma, and Donatelle. They are also working to change their SIC code to reflect the diversified industrial nature of the company. \[11\], \[12\], \[22\]

7. **Interest in Water Business**  
   **Q:** Any interest in assets, especially water business?  
   **A:** Ed Breen indicated they haven't had conversations about selling the water business but would consider it if there's a better path to creating shareholder value. They don't plan to bolt on businesses ahead of the split. \[9\]

8. **Cost Savings and Restructuring**  
   **Q:** What's driving lower cost of goods sold?  
   **A:** Antonella highlighted impact from cost deflation and accelerated restructuring actions. They now expect **$115 million** in restructuring savings this year, up from the previous **$100 million** estimate, helping to reduce costs and improve margins. \[27\]

9. **Donatelle Acquisition Impact**  
   **Q:** Can you size the Donatelle acquisition and its fit?  
   **A:** Donatelle, with annual revenue of about **$75 million**, fits well with the Spectrum acquisition, adding exposure to large medical device OEMs and slightly better margins. This enhances their healthcare portfolio ahead of the spin. \[24\], \[25\]

10. **Cash Flow Performance**  
    **Q:** What drove strong cash flow in Q2?  
    **A:** Lori attributed the strong cash flow to better working capital performance, especially in inventory management. They are on track to meet their **90%** cash conversion target for the year, with a **96%** rate achieved quarter-to-date. \[17\]

d258e405c9096a85812e617dcafcc1618a8e9c053aa2d29cc35a8292ca2cda3b

| Name                        | Start Date       | End Date         | Reason for Change                                                                 |
|-----------------------------|------------------|------------------|----------------------------------------------------------------------------------|
| PricewaterhouseCoopers LLP  | December 31, 2019  **[0001666700-18-000064_dwdpauditorchange8-k.htm:1]**  | Present          | Current auditor.                                                                 |
| Deloitte & Touche LLP       | 1905  **[0001666700-19-000006_a2018dwdp10-k.htm:135]**          | December 31, 2018  **[0001666700-18-000064_dwdpauditorchange8-k.htm:1]**  | Part of the company's planned activities related to its intended separation into three independent, publicly traded companies.  **[0001666700-18-000064_dwdpauditorchange8-k.htm:1]**  |

b8711b157e70450bacb84df39eb0c15c6d56717f4e51954ecbeefd293746d731

efd15cc40ee1eef83af3ade094dc46f65a035d5596c277450f5c95a3c875781b

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $3,192 million (+4% YoY)  **[0001666700-23-000087_dd-20230930.htm:17]** **[0001666700-24-000036_dd-20240930.htm:16]** 
- Electronics & Industrial: $1,551 million (+13% YoY)  **[0001666700-23-000087_dd-20230930.htm:17]** **[0001666700-24-000036_dd-20240930.htm:16]** 
  • Industrial Solutions: $493 million (−7% YoY)  **[0001666700-23-000087_dd-20230930.htm:17]** **[0001666700-24-000036_dd-20240930.htm:16]**   
  • Interconnect Solutions: $491 million (**+29% YoY**)  **[0001666700-23-000087_dd-20230930.htm:17]** **[0001666700-24-000036_dd-20240930.htm:16]**   
  • Semiconductor Technologies: $567 million (**+24% YoY**)  **[0001666700-23-000087_dd-20230930.htm:17]** **[0001666700-24-000036_dd-20240930.htm:16]** 
- Water & Protection: $1,382 million (−2% YoY)  **[0001666700-23-000087_dd-20230930.htm:17]** **[0001666700-24-000036_dd-20240930.htm:16]** 
  • Safety Solutions: $598 million (−5% YoY)  **[0001666700-23-000087_dd-20230930.htm:17]** **[0001666700-24-000036_dd-20240930.htm:16]** 
- Corporate & Other: $259 million (−7% YoY)  **[0001666700-23-000087_dd-20230930.htm:17]** **[0001666700-24-000036_dd-20240930.htm:16]** 
- Asia Pacific: $1,411 million (**+8% YoY**)  **[0001666700-23-000087_dd-20230930.htm:17]** **[0001666700-24-000036_dd-20240930.htm:16]** 
- Operating Income (EBIT): $586 million (**+44% YoY**)  **[0001666700-23-000087_dd-20230930.htm:7]** **[0001666700-24-000036_dd-20240930.htm:5]** **[0001666700-24-000036_dd-20240930.htm:41]** 
- Net Income: $462 million (**+41% YoY**)  **[0001666700-23-000087_dd-20230930.htm:7]** **[0001666700-24-000036_dd-20240930.htm:5]** **[0001666700-24-000036_dd-20240930.htm:41]** 
- Diluted EPS: $1.08 (**+56% YoY**)  **[0001666700-23-000087_dd-20230930.htm:7]** **[0001666700-24-000036_dd-20240930.htm:5]** **[0001666700-24-000036_dd-20240930.htm:41]** 

6db702283256822e67ab373fe2a6417bd353e2b18695174e4b4fefee9b355aa3

Change in net sales from prior period for Electronics & Industrial (Local price & product mix) (percentage)

Change in net sales from prior period for Electronics & Industrial (Currency) (percentage)

Change in net sales from prior period for Electronics & Industrial (Volume) (percentage)

Change in net sales from prior period for Electronics & Industrial (Portfolio & other) (percentage)

Change in net sales from prior period for Electronics & Industrial (Total) (percentage)

Change in net sales from prior period for Water & Protection (Local price & product mix) (percentage)

Change in net sales from prior period for Water & Protection (Currency) (percentage)

Change in net sales from prior period for Water & Protection (Volume) (percentage)

Change in net sales from prior period for Water & Protection (Portfolio & other) (percentage)

Change in net sales from prior period for Water & Protection (Total) (percentage)

27bdaffcd02078adc92d7e210de4b898299f61554770e8c25c3238e50bda3dcb

ee85d300c92e6de04b1eb3a54929d4550b913271e7cbfbb8ea1083db5d73a6a8

- **DuPont faces ongoing PFAS litigation risks**, with personal injury cases remaining at around **3,000 cases** after expected dismissals, which can be refiled over the next four years.  **[DD_3395267_32]** **[DD_3395267_11]**
- **Electronics revenue may have been favorably impacted by pull-forward of orders**, with approximately **$30 million** in pre-buys that could potentially soften future quarters.  **[DD_3395267_7]**
- **Cost reductions might not be sustainable long-term**, as they are partly due to **deflation and accelerated restructuring savings**, which may not continue at the same pace.  **[DD_3395267_33]**

0f38ae78ef88801ebc29dbf8c04957fd970622cefedb8d12bc8d52aab54b8e78

1. **Spin-Off Timeline**  
   **Q:** Why more confident shortening spin-off timeline?  
   **A:** Ed Breen stated they've made great progress on legal entity work and IT separation, boosting confidence in moving towards an **18-month timeline**, potentially completing by **December 2025**.  **[DD_3405724_6]** 

2. **Electronics Prebuy in China**  
   **Q:** Why is there a prebuy in electronics business?  
   **A:** Lori Koch explained that new fabs in China are leading to prebuys to get through qualifications and ramp-up. They mentioned **$30 million** last quarter and another **$20 million** this quarter, totaling **$40 million** over the second half.  **[DD_3405724_7]** 

3. **W&P Margins Improvement**  
   **Q:** What's driving strong W&P margins this quarter?  
   **A:** Lori Koch attributed the strong margins to operational execution, restructuring actions, productivity improvements, and shuttering older lines in the safety business, resulting in margins over **26%**.  **[DD_3405724_9]** 

4. **China Exposure in Electronics**  
   **Q:** How significant is China in electronics sales? Any risks?  
   **A:** China accounts for **30%** of electronic sales, with about half being China for China. Their strong position with local players and global OEMs in China favors their results despite potential trade risks.  **[DD_3405724_16]** 

5. **2025 Outlook**  
   **Q:** What are your initial thoughts on 2025 performance?  
   **A:** Lori Koch mentioned no significant changes from prior expectations, anticipating accelerated growth in electronics driven by AI and new fabs, recovery in memory markets, and normalized demand in other sectors.  **[DD_3405724_20]** 

6. **Pricing Trends**  
   **Q:** Why are prices decreasing in certain businesses?  
   **A:** The decrease is due to prior mid-teens price increases exceeding cost hikes, leading to slight givebacks to maintain market share. This trend is expected to continue.  **[DD_3405724_17]** 

7. **Free Cash Flow Deployment**  
   **Q:** How will free cash flow be used next year?  
   **A:** Strong free cash flow conversion is expected, with cash primarily used for separation costs related to the spin-offs. No significant CapEx projects or share repurchases are planned for next year.  **[DD_3405724_25]** 

8. **ITC Complaint on Tyvek Imports**  
   **Q:** What's the status of the ITC complaint on Tyvek imports?  
   **A:** Lori Koch stated the ITC filing speaks for itself and they'll defend their patents and trade secrets. The issue arose recently due to observed trade infringements.  **[DD_3405724_26]** 

9dfb132bc519eb5fe1eb8b244ccdde2154f076ca87f7ddb1a48fc011ff3ffe10

- **DuPont expects sales and profit growth to begin in the third quarter of 2024, with greater growth in the fourth quarter**, indicating improving business conditions in the second half of the year.  **[DD_3371989_20]**
- **Significant growth opportunities in lithium extraction and AI** are anticipated, with lithium requiring substantial filtration—a DuPont specialty—and AI driving demand for advanced semiconductors, where DuPont has a strong position.  **[DD_3371989_27]** **[DD_3371989_13]**
- **DuPont's electronics business is poised to capitalize on the increasing demand for advanced chips used in data centers and AI applications**, which aligns with the company's strengths and is expected to drive substantial growth as the semiconductor industry recovers.  **[DD_3371989_13]** **[DD_3371989_24]** **[DD_3371989_28]** **[DD_3371989_16]**

5a71818025fdf8e0b74df2a87636d017166666b345f060bc3a8c91ecd828378d

- DuPont sees a significant growth opportunity in lithium extraction through its water business, with a **potential market opportunity of around $250 million**.  **[DD_3395267_34]**
- The company is achieving **strong cash flow generation**, with **cash flow conversion of 96% quarter-to-date** and is on track to deliver **over 90% cash flow conversion** for the year.  **[DD_3395267_24]**
- DuPont is benefiting from **cost savings due to restructuring actions**, with expected **savings of $115 million** for the year, contributing to improved margins.  **[DD_3395267_23]**

49b2554a9ccf713d9a7bc2e3c6d8d06db14d41af86fabca1367e8e3c5c1064f1

- **DuPont's Electronics & Industrial (E&I) segment is experiencing strong growth**, with volumes in Semiconductor Technologies up **10%** year-over-year due to recovering semiconductor market demand and normalization of customer inventory levels. Interconnect Solutions also sees positive momentum with a second consecutive quarter of year-over-year volume growth. E&I sales in China grew **15%** in the first quarter.  **[DD_3381826_4]** ,  **[DD_3381826_13]** ,  **[DD_3381826_9]**
- **The company can support further growth in the electronics business without significant capital expenditures**, as the electronics segment is not capital intensive and manufacturing capacity can be upgraded quickly and modularly.  **[DD_3381826_24]**
- **DuPont expects to return to volume growth in the second half of 2024**, with improvements in key segments and reduced inventory destocking. The company anticipates **low to mid-single-digit volume growth in 2025** in the Water & Protection segment.  **[DD_3381826_22]** ,  **[DD_3381826_18]**

72979d0178e7631f64b9198bdcc5127b525586ad144897a3c04c37fe673e3ee5

- **Continued year-over-year headwinds in semiconductor CapEx exposed businesses due to destocking, with recovery expected as the company heads into 2025.**  **[DD_3405724_12]**
- **Pricing pressures in the Safety Solutions segment are leading to price decreases to maintain market share, which may impact margins.**  **[DD_3405724_17]**
- **Uncertainty about sustaining high margins and earnings growth in 2025, with management not providing specific guidance and emphasizing the need to maintain top-line growth and productivity initiatives.**  **[DD_3405724_24]** **[DD_3405724_17]**

e4853863d3000e899a18f48e30db992a2ad3b9e209e99816f060c69ca41a284b

- **Potential lower structural growth rates in China** could impact DuPont's volume recovery expectations, as the company relies on a rebound in Chinese demand to drive growth.  **[DD_3371989_24]**
- DuPont **expects flat volumes in the auto and EV sector in 2024**, which may limit growth prospects for its retained businesses serving this market.  **[DD_3371989_19]** **[DD_3371989_18]**
- The **electronics business is not being appropriately valued by the market**, and despite management's expectation of improvement, there are limited options to unlock that value in the near term.  **[DD_3371989_13]**

58ed8c68799153adf94157d9836375f7a7a3741449b9d55c9d02d52c5eef7229

- **Water & Protection segment volumes have been flat over the past three years, with recent losses offsetting earlier gains, and significant growth is not expected until 2025, indicating near-term uncertainty in this segment.**  **[DD_3381826_22]**
- **DuPont faces ongoing PFAS litigation with potential settlements expected in the coming years, which could result in financial liabilities impacting the company's performance.**  **[DD_3381826_15]**
- **Despite exceeding first-quarter expectations, DuPont only raised its full-year guidance by the amount of the Q1 beat, suggesting limited confidence in stronger growth in the second half of the year.**  **[DD_3381826_15]**

43901bf1bacb7b7492c70dbcd0ef84187c974a7ee9c90cdf93a909f446503e07

1. **Electronics Growth and AI Impact**  
   **Q:** Will AI structurally raise growth rates in electronics?  
   **A:** Ed Breen explained that their data center revenue is about **$700 million**, with **$250 million** being AI-specific and growing **over 20%**.  **[DD_3381826_9]**  He anticipates that the E&I business could grow **high single digits** in **2025** due to the AI super cycle, which will also enhance margins.  **[DD_3381826_9]** 

2. **Margin Outlook and Incrementals**  
   **Q:** What is the outlook for margins and incrementals as volumes recover?  
   **A:** Ed Breen stated they expect to retain most of the **$150 million** in cost savings, with incrementals of **56%** in the second half.  **[DD_3381826_6]**  Lori Koch added that second-half margins are projected to improve by nearly **200 basis points**, reaching the low **25%** range.  **[DD_3381826_6]** 

3. **Capital Allocation: Buybacks vs. M&A**  
   **Q:** What are your plans for buybacks versus M&A?  
   **A:** Ed Breen noted they are not planning any acquisitions this year but may consider **tuck-in acquisitions** in healthcare.  **[DD_3381826_16]**  They plan to complete another **$500 million** ASR this year and remain open to share repurchases depending on the stock price.  **[DD_3381826_16]** 

4. **PFAS Litigation Update**  
   **Q:** Can you provide an update on PFAS litigation?  
   **A:** Ed Breen mentioned that the next settlement likely involves the **Stade AG cases** in **2025**.  **[DD_3381826_14]**  He highlighted that their exposure is **3–7%** of the total PFAS liability, with DuPont responsible for one-third of that amount.  **[DD_3381826_14]** 

5. **China Recovery and Sales Outlook**  
   **Q:** What is the outlook for China recovery and sales?  
   **A:** Lori Koch reported **3%** growth in China in Q1, driven by a **15%** increase in E&I.  **[DD_3381826_6]** **[DD_3381826_10]**  They expect overall China sales to be flat for the year due to currency headwinds but anticipate volume improvements as the year progresses.  **[DD_3381826_19]** 

6. **Price-Cost Dynamics**  
   **Q:** Any updates on price-cost spread expectations?  
   **A:** Lori Koch stated they had better-than-expected price-cost spread in Q1, contributing to the beat, and they expect this favorability to hold for the year.  **[DD_3381826_8]** 

7. **W&P Margins Outlook**  
   **Q:** How do you view long-term margins in Water & Protection?  
   **A:** Lori Koch reaffirmed the margin target of **27%** for W&P.  **[DD_3381826_13]**  Margins have been pressured due to lower volumes but are expected to improve by about **100 basis points** in the second half as volumes recover.  **[DD_3381826_13]** 

8. **Spectrum Performance**  
   **Q:** How is Spectrum performing relative to expectations?  
   **A:** Ed Breen said Spectrum is performing as planned, with a significant ramp-up with a key medical device customer.  **[DD_3381826_15]**  The healthcare business, including Spectrum, Tyvek medical packaging, and Liveo, now represents **10%** of the company.  **[DD_3381826_15]** 

9. **Water Solutions Destocking in China**  
   **Q:** What caused the inventory destocking in China's Water Solutions?  
   **A:** Ed Breen explained that industrial slowdown led distributors to reduce inventories over **5–6 months**.  **[DD_3381826_10]**  They expect orders to pick up around June, attributing the destocking to macroeconomic factors.  **[DD_3381826_10]** 

10. **Free Cash Flow Conversion**  
    **Q:** What are your free cash flow conversion expectations for 2024?  
    **A:** Lori Koch expects to achieve around **90%** conversion for the year.  **[DD_3381826_19]**  Q1 was at **86%**, and while Q2 will dip due to a **$200 million** interest payment, overall performance is strong.  **[DD_3381826_19]** 

11. **Adhesives and Tedlar Performance**  
    **Q:** How did adhesives and Tedlar perform amidst industrial softness?  
    **A:** Lori Koch reported continued strength in EV auto, which was up **double digits** in the quarter and expected to remain strong.  **[DD_3381826_11]**  Strong volumes in Tedlar for photovoltaics contributed to **1%** organic growth.  **[DD_3381826_11]** 

12. **Price Declines in Electronics**  
    **Q:** Can you maintain pricing in electronics over time?  
    **A:** Ed Breen noted that typical price declines are about **1%**, but with advanced nodes and AI, they expect better pricing and margin improvement due to favorable mix.  **[DD_3381826_7]** 

13. **ICS and Market Share**  
    **Q:** How is ICS content exposure affecting recovery?  
    **A:** Ed Breen stated that PCB utilization rates are improving from the mid-40s to the mid-50s and are expected to reach the low **60%** range in the second half.  **[DD_3381826_12]**  Lori Koch mentioned share gains in premium smartphones and other devices, leading to sustained volume lifts.  **[DD_3381826_12]** 

14. **Fluoropolymer Concerns with Kalrez and Tedlar**  
    **Q:** Are customers avoiding fluoropolymer products like Kalrez and Tedlar?  
    **A:** Lori Koch indicated no customer concerns; in fact, Tedlar being **PFAS-free** presents opportunities to gain share in the photovoltaic space.  **[DD_3381826_20]** 

15. **Return to Volume Growth**  
    **Q:** Will volumes return to growth in the second half?  
    **A:** Lori Koch confirmed they expect a return to volume growth in the second half, with growth ramping from Q3 to Q4 due to easier comparisons.  **[DD_3381826_18]** 

16. **Capacity Expansion in Electronics**  
    **Q:** Any CapEx needs for expanding electronics capacity?  
    **A:** Ed Breen stated that E&I is not asset-heavy and doesn't require significant CapEx; expansions can be modular and executed quickly, focusing mainly on state-of-the-art testing equipment.  **[DD_3381826_21]** 

17. **Sequential EBITDA Expectations**  
    **Q:** Has anything changed in the sequential EBITDA expectations?  
    **A:** Lori Koch said that overdelivery in Q1 muted the sequential ramp, but overall, there is upside to their expectations, with EBITDA increasing from **$682 million** in Q1 to **$710 million** in Q2.  **[DD_3381826_8]** 

7e37871e439d72326beb60fe97c3a028c1571d2b1a5b26136999bf9344a30474

1. **2024 Earnings Outlook**  
   **Q:** What drives your confidence in the earnings growth outlook for 2024?  
   **A:** We anticipate earnings growth in the second half of 2024 driven by increased semiconductor fab and PC utilization rates, completion of destocking, improved factory absorption, and benefits from our cost savings program. Specifically, we expect EBITDA margins to approach **26%** in Q4, with a longer-term target for total company EBITDA margins of **27-28%**.  **[DD_3371989_10]** **[DD_3371989_28]** 

2. **Electronics Business Recovery**  
   **Q:** How will the electronics business perform in the recovery, and is it aligned with industry trends?  
   **A:** Our electronics business is closely coupled with industry trends, particularly growth in data centers and AI, which are major demand drivers. We expect semiconductor utilization rates to increase from the low 70s to the low 80s in 2024, with further upside potential in 2025. Our products are well-positioned for advanced chip applications, and we have maintained market share without decoupling from the broader electronics trends.  **[DD_3371989_16]** **[DD_3371989_10]** **[DD_3371989_14]** 

3. **China Market Outlook**  
   **Q:** What is your outlook for China and its impact on your business?  
   **A:** Despite a challenging market, we're seeing signs of improvement in China. In January, water orders in China were up **13%**, indicating that destocking may be ending. While true demand is down **3-4%**, we expect growth as we move past the destocking phase. Even if China’s structural growth rate slows, it's coming off a low base, and we anticipate benefiting from the recovery.  **[DD_3371989_17]** **[DD_3371989_7]** **[DD_3371989_8]** **[DD_3371989_24]** 

4. **Unlocking Electronics Business Value**  
   **Q:** What are your options to unlock value in the electronics business?  
   **A:** We recognize the significant value of our electronics business and believe that as we navigate through destocking and see earnings improve in the second half of 2024, the market will better reflect this value. We're focusing on executing our strategy and will assess the situation as we exit 2024.  **[DD_3371989_13]** 

5. **Impact of Destocking**  
   **Q:** How has destocking affected your business, and when do you expect it to end?  
   **A:** Destocking has significantly impacted our short-cycle businesses, but we're beginning to see signs of recovery. We expect destocking to be mostly complete in the second half of 2024, leading to volume growth and improved factory absorption. For example, water orders were up **13%** in January, signaling distributor inventories bottoming out.  **[DD_3371989_8]** **[DD_3371989_10]** **[DD_3371989_17]** **[DD_3371989_26]** 

6. **Cash Flow Conversion**  
   **Q:** What is your expected cash flow conversion in 2024?  
   **A:** We anticipate maintaining a cash flow conversion target of around **90%** for 2024. Our pension funding needs are modest at **$50-60 million**, and capital expenditures remain consistent with prior years. We made significant progress on inventory reduction in 2023 and aim to retain those gains.  **[DD_3371989_9]** 

7. **Absorption Headwinds**  
   **Q:** Can you quantify the absorption headwinds from inventory actions?  
   **A:** In 2023, we faced absorption headwinds of a little over **$200 million**, primarily in Electronics & Industrial (E&I), with some impact in Water & Protection (W&P) towards year-end. These headwinds are expected to continue in Q1 2024, with potential improvement as volumes increase in the second half.  **[DD_3371989_22]** 

8. **Price-Cost Dynamics**  
   **Q:** What are your expectations for price versus cost in 2024?  
   **A:** We foresee a **1%** price decline on the top line for 2024 but expect to offset this with carryover benefits from reduced raw material, logistics, and energy costs, resulting in a neutral price-cost spread for the year. In Q4 2023, we saw a price-cost benefit of **$50-75 million**.  **[DD_3371989_6]** **[DD_3371989_23]** 

9. **Exposure to AI and Data Center Growth**  
   **Q:** How is DuPont positioned to benefit from AI and data center growth?  
   **A:** Approximately **$700 million** of our **$2 billion** semiconductor business is tied to data centers. We're well-positioned to capitalize on the growth in AI and advanced chip applications, which play to the strengths of our electronics portfolio. We typically outgrow the market by **200-300 basis points** due to this positioning.  **[DD_3371989_16]** **[DD_3371989_14]** 

10. **Water Business Growth Opportunities**  
    **Q:** What new growth opportunities exist in your water business?  
    **A:** The lithium extraction market presents a substantial opportunity for our water business due to the high demand for filtration technologies. Additionally, we expect to maintain mid-single-digit growth rates globally in water filtration, with long-term confidence in the market's potential.  **[DD_3371989_27]** **[DD_3371989_17]** 

11. **Semiconductor Fab Wins**  
    **Q:** When do new semiconductor fab wins contribute to revenue?  
    **A:** Our sales process involves collaborating closely with about **10 major customers** at the design stage. The location of chip processing is less relevant to us. Market share in advanced chips remains stable, and we benefit as new fabs come online to meet increasing demand in advanced semiconductors.  **[DD_3371989_14]** 

12. **Shelter Solutions Outlook**  
    **Q:** What is the outlook for Shelter Solutions and utilization rates?  
    **A:** We expect normal seasonal patterns in Shelter Solutions, with improvement in volumes as the year progresses. Volumes were down **4%** in Q4 but are expected to be slightly up in Q1 and build to about **4%** growth by year-end. The business isn't highly fixed-cost intensive, so absorption impacts are minimal.  **[DD_3371989_12]** **[DD_3371989_15]** 

13. **Spectrum Acquisition Performance**  
    **Q:** How is the Spectrum acquisition performing relative to expectations?  
    **A:** Spectrum is performing in line with our expectations and is ramping up nicely, particularly with the new customer win highlighted during the acquisition. We've integrated Spectrum with our Liveo Healthcare business to capitalize on commercial synergies.  **[DD_3371989_19]** 

14. **Auto and EV Market Expectations**  
    **Q:** What are your expectations for the auto and EV markets in 2024?  
    **A:** After a strong 2023 with high single-digit growth in the auto industry, we expect volumes to be about flat in 2024, aligning with auto build rates. While China may slow down, we remain confident in the long-term growth of EVs, with **25-30%** of our portfolio now tied to electric vehicles.  **[DD_3371989_18]** 

15. **Efforts to Reduce Cyclicality**  
    **Q:** How do you view cyclicality in your current portfolio?  
    **A:** In normal times, our portfolio is more consistent and less cyclical. The recent volatility is due to unusual destocking events, which are rare. We believe half our portfolio should outgrow GDP and the other half should grow with GDP, leading to steady long-term growth.  **[DD_3371989_25]** **[DD_3371989_21]** 

a049a9acf573de7366f03d48497083692e769db6d30fe6c17eb791791cef2512

- DuPont's **Electronics & Industrial (E&I)** segment experienced significant growth, with **Semiconductor Technologies revenues increasing over 20%**, driven by AI technology ramps and share gains. In China, E&I sales were up **over 50%**, highlighting DuPont's strong footprint and exposure to advanced nodes.  **[DD_3405724_28]** **[DD_3405724_10]**
- DuPont secured a major win in the **battery adhesives** space with one of the largest European OEMs, solidifying its position in the **EV market**. Additionally, the company closed the **Sonatel acquisition** in August, enhancing its **healthcare portfolio** and opening up cross-selling opportunities across its businesses.  **[DD_3405724_28]**
- Operational excellence initiatives, including restructuring actions and productivity improvements, led to **strong margins over 26%** in the **Water & Protection (W&P)** segment, demonstrating DuPont's effective execution and cost management.  **[DD_3405724_9]**

4384793c45503de54c92f4fcebfd02eee5e1b045df6119aee833d12ca5237baa

Dupont De Nemours Inc (DD)

Financials