Jefferies 2013 Global Industrials Conference. Jim Collins. Senior Vice President* E. I. du Pont de Nemours & Company

Transcription

1 Jefferies 2013 Global Industrials Conference August 12, 2013 New York City Jim Collins Senior Vice President* E. I. du Pont de Nemours & Company * Effective 9/1/2013 1

2 Regulation G The attached charts include company information that does not conform to generally accepted accounting principles (GAAP). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the company and allows investors to better evaluate the financial results of the company. These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companies. This data should be read in conjunction with previously published company reports on forms 10-K, 10-Q, and 8-K. These reports, along with reconciliations on non-gaap measures to GAAP are available on the Investor Center of under Key Financials & Filings. Forward Looking Statements During the course of this presentation we may make forward-looking statements or provide forward-looking information. All statements that address expectations or projections about the future are forward-looking statements. Some of these statements include words such as plans, expects, will, anticipates "believes," intends, and estimates. Although they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of risks, uncertainties, and assumptions. Some of those risk factors include: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; global economic and capital markets conditions; litigation and environmental matters; changes in laws and regulations or political conditions; business or supply disruptions, successful integration of acquired businesses and divestitures if underperforming or non-strategic assets. The Company does not undertake to update any forwardlooking statements as a result of future developments or new information. Developing Markets Total developing markets is comprised of Developing Asia, Developing Europe, Middle East & Africa, and Latin America. A detailed list of all developing countries is available on the Earnings News Release link on the Investor Center website at 2 2

3 Strong Company, Clear Direction & Priorities 3

4 Clear Strategy to Increase the Value of DuPont Generate superior shareholder returns by building and leveraging world-leading positions across three attractive spaces Ag & Nutrition 1. Extend our leadership across the high-value, science-driven segments of the Ag and Food value chain Bio-based Industrials 2. Develop world-leading industrial biotechnology capabilities to create transformational new bio-based businesses Advanced Materials 3. Strengthen and grow our leading position in differentiated high-value materials and leverage new sciences Three Strategic Priorities 4

5 Recent Portfolio Enhancements Safety & Protection 2012 Segment Sales Industrial Biosciences Agriculture Performance Coatings May 2011 Performance Materials $34.8B* February 2013 Electronics & Communications Performance Chemicals Nutrition & Health Higher Value Creation Going Forward * Consolidated net sales from continuing operations. 5

6 Next Steps in the Transformation of DuPont To A Higher Growth, Higher Value Company Realignment of Senior Leaders Exploring Strategic Alternatives for Performance Chemicals Redesigned Cost Structure $2 billion lower Danisco Acquisition Performance Coatings Divestiture Aligned With Strategic Plan 6

7 Industrial Biosciences & Performance Materials 7

8 Industrial Biosciences- Three bio-based segments, serving a diverse set of customers Business Units Market CAGR Markets Trends % of 2012 Sales Bioactives 5-10% Food, beverages, feed, detergents, personal care, textiles Population and income growth fueling core demand in animal nutrition and convenience Water and energy conservation for textile production and fabric care 57% Biomaterials 4-7% Carpet, apparel, automotive Retailer and consumer preference for the use of sustainable materials Feedstock supply diversification 19% Biorefineries 7-9% Carbohydrates, ethanol, butanol Global mandates for energy diversification, environmental concerns and rural development 24% 8

9 Capturing Value as the Technology Enabler in Advanced Biofuels Revenue Streams Technology licensing Enzyme and fermentation microbe sales Biofuels sales Commercial Demonstration Facility*: Capacity: 30 million gallons per year Location: Nevada, Iowa Products: Cellulosic ethanol, lignin co-product Feedstock: Corn stover Status: Construction underway, start up expected in 2014 Three Revenue Streams in Advanced Biofuels *When fully operational 9

10 Creating World-Changing Solutions for a Biobased Society Agricultural Carbon Sources Conversion Biobased Products Today Bioactives Bio/chemical transformation Sugars Bio/chemical transformation Biomaterials Future Biofuels Copyright 2013 DuPont. All rights reserved 10

11 Industrial Biosciences Summary Early Stages of Our Growth Story Key Growth Drivers Population and income growth fueling core enzyme demand in emerging markets Sales and Margin Performance $1.2 $0.7 Increasing use of sustainable materials driving biobased solutions 11% 14% Global sustainability mandates and energy security driving biofuels demand Sales ($B)* Operating Margins (%)** Long-Term Growth Targets: Sales 7-9% CAGR with 16-18% Margins * Segment sales include transfers. ** Excludes non-operating pension/opeb costs and significant items. See company website for detailed reconciliation of non-gaap measures. 11

12 DuPont Renewably Sourced Materials are Growing Our goal is to provide performance and functionality equivalent to or better than today s fully petroleum based materials while reducing the environmental footprint. Enhanced Performance Total Lowest System Cost Sustainable Solutions 12

13 Renewable Polymers are Commercial Denso radiator end-tank - Zytel RS Cell phones - Zytel RS Salomon ski boots - DuPont Hytrel RS 2009 Winner SPE Innovation Fisher wall anchors - Zytel RS Knoll Chair - Hytrel RS Toyota Resistor Blades - Sorona EP Superior Communications HHD cover - Hytrel RS Hutchinson/Fiat Diesel Fuel Lines - Zytel RS 2011 Finalist SPE Innovation Fuel Lines Zytel RS Active Layer carpet membrane - Hytrel RS 2011 Winner SPE Innovation 13

14 Performance Materials Summary Key Growth Drivers Sales and Margin Performance Automotive Light weighting, increasing use of plastics $6.3 $6.8 $6.4 Packaging Global supply from Gulf Coast assets 17% 15% 19% Globalization Increased penetration in Asia Renewables Growth in renewable polymers Sales ($B)* Operating Margins (%)** Long-Term Growth Targets: Sales 3-5% CAGR with 16-18% Margins * Segment sales include transfers. ** Excludes non-operating pension/opeb costs and significant items. See company website for detailed reconciliation of non-gaap measures. 14

15 Summary 15

16 What You Can Expect Strategic Priorities Operational Priorities Extend Ag & Nutrition Leadership Innovation Build Bio-based Businesses Global Reach Strengthen Advanced Materials Execution 7% 12% Sales CAGR Operating EPS CAGR Long Term Growth Targets 16

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