Qnity Electronics (Q) Investor Presentation summary

Executive summary

• Qnity is set to spin off from DuPont as an independent, publicly traded electronics company by November 1, 2025, focusing on technology solutions for the semiconductor value chain.

• The company is led by experienced executives with deep backgrounds in electronics and finance, and operates globally with ~10,000 employees and a presence in over 80 countries.

• Qnity's portfolio covers the full semiconductor manufacturing cycle, with over 65% of its offerings directly tied to semiconductors and strong partnerships with leading OEMs and fabs.

Market and industry positioning

• The semiconductor market is projected to grow to $1.3T by 2030, driven by AI, high-performance computing, connectivity, and automotive electrification.

• Qnity is positioned as a pure-play technology leader, providing critical integrated solutions across chip fabrication, advanced packaging, PCB building, and assembly & display.

• The company serves a diversified customer base, with its top 10 customers representing 34% of sales and an average tenure of 35 years.

Financial performance and outlook

• Net sales are expected to reach ~$4.6B in 2025, with an adjusted pro forma operating EBITDA margin of ~30% and free cash flow exceeding $600M.

• Qnity targets a 6-7% organic net sales CAGR and 7-9% adjusted EBITDA growth CAGR through 2028, with a disciplined capital allocation strategy including R&D, dividends, and opportunistic M&A.

• The company maintains a strong balance sheet, targeting net leverage below 3.0x and supporting future growth with $4.1B in gross debt and $3.5B in net debt.