Asia through Innovation

Transcription

1 DELIVERING SOLUTIONS. DELIVERING GROWTH. Delivering Growth in Asia through Innovation Carl Lukach President DuPont East Asia November 7, 2011

2 Regulation G The attached charts include company information i 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 results are available on the Investor Center of 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, "believes," intends, and estimates 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; and business or supply disruptions. The Company does not undertake to update any forward-looking 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

3 DUPONT FULL YEAR FINANCIAL HIGHLIGHTS Full Year Sales 2010: $31.5B, +21% 2011E: $38-39B, +22% $ in Billions $38-$39 Full Year EPS* 2010: $3.28, +62% 2011E: $3.97-$4.05, $4 +22% $ per share $ $4.05 Dividend Announced our 429 th consecutive quarterly dividend Maintained our dividend during the recession * Excludes significant items. Refer to company website for detailed reconciliations of non-gaap measures. 3

4 OUR INDUSTRY LEADERSHIP IN SCIENCE External recognition #1 in our industry for patent strength (The Patent Board) Five consecutive years for this award Top 50 Innovative Companies (MIT Review) Awarded in 2010 to firms that show the most innovation in commercializing new technologies World s Most Admired Companies Top 50 (Fortune) The only company in our sector to be named to this list Zytel PLUS Most Innovative Use of Plastics Award (SPE) A collaboration with General Motors for use of Zytel PLUS in an engine cover application Best Place to Work in Large Industry (The Scientist) DuPont earned the top spot, Pioneer was number two 4

5 WE ARE APPLYING OUR SCIENCE To find solutions to some really big challenges: FOOD ENERGY PROTECTION FEEDING THE REDUCING OUR KEEPING PEOPLE & WORLD DEPENDENCE ON THE ENVIRONMENT FOSSIL FUELS SAFE 5

6 TWO BILLION MORE PEOPLE BY 2050 Growth occurring in developing regions including Asia Implications: need 70% more food production, additional energy to meet the growth Source: United Nations population division (2011) 6

7 ONE BILLION MORE MIDDLE CLASS BY 2020 Middle class growth concentrated t in Asia million Implications: rising incomes, more consumption of protein, and an enhanced lifestyle Source: Organization for Economic Cooperation and Development paper 285 (2010) 7

8 DUPONT GROWTH STRATEGY Driving innovation, productivity, and growth in developing markets 2010 Global pro forma sales $34.2B Developing regions: $11.1B or 32% Asia Developing 14% Growing: Asia contributed to 23% of 2010 pro forma revenue and growing Asia Developed 9% EMEA Developing 7% EMEA Developed 20% US 36% Canada 3% Latin America 11% Broadening market access: The Danisco acquisition has broadened our reach in enzymes and food Megatrends: Food, energy, and protection are increasing in importance for developing markets 8

9 DUPONT GROWTH STRATEGY Building three world-leading, leading integrated competencies As a premier market-driven science company, we will generate superior shareholder returns by integrating across the ag-biotech-material space: Ag & Nutrition Seeds Traits Ag Chemicals Specialty Food Ingredients Advanced Materials Electronic Materials Protective Materials Alternative Energy Advanced Polymers Advanced Processes 9

10 INVESTING FOR GROWTH DuPont 2010 pro forma R&D To be a premier market-driven science company and generate superior shareholder returns by differentially managing our portfolio: Decreasing Dependence on Fossil Fuels Megatrends Increasing Food Production 60% 15% Chemistry Engineering 11% Materials Science Nanotechnology Industrial Biotech 9% Ag Biotech 5% Protecting People and the Environment Chemicals and Materials Electronics 10

11 DUPONT ASIA PACIFIC GROWTH ~20% revenue growth for 2011E Growth led by electronics, automotive, packaging, and agriculture Revenue, $ Billions Excluding joint ventures ~20% Geographic expansion and market penetration playing a key role E Demonstrated growth through market-driven science 11

12 GROWTH DRIVERS FOR DUPONT IN ASIA PACIFIC FOUR ELEMENTS: TECHNOLOGY DRIVEN GROWTH Performance Polymers for auto Emerging bio-based polymers Advanced photovoltaic materials New crop protection & seed products MARKET PENETRATION GROWTH China Go West program India ASEAN New products for local markets In economies with GDP growth rates 2-3X developed markets GROW WITH GLOBAL INDUSTRY LEADERS Automotive Electronics GROWTH IN NEW MARKETS Food Energy 12

13 DUPONT IN GREATER CHINA about 22% sales growth from 2010 to 2011E Revenue, $ Billions Excluding joint ventures 24% CAGR E Plants R&D/Technical Centers Offices Joint Ventures DuPont s innovation strategy in China targets large new markets 13

14 CHINA S 12th 5-YEAR PLAN Highlights Major Opportunities Relevant to DuPont Global Megatrends China Opportunities Implication Increasing food production Decreasing dependence on fossil fuels Increasing food production & safety Decreasing dependence on fossil fuels Protecting lives & environment Higher yields Advanced techonology in agriculture Food quality Food safety New energy Energy efficiency New materials Bio-material Water treatment & conservation Emission reduction New materials Pioneer P&IP Solae Qualicon DCP Food industry Animal Health board DPVS Bio - fuel & Bio - material DPP DC&F Industry board Wind, Railway DSS DC&F DPT Clean Technology BI P&IP E&C Protecting lives Growing in emerging markets, urbanization & infrastructure development Construction Infrastructure Electricity grid Mass transportation BI DPP DTT DPC DPT industry board Auto, Food P&IP Growing in developing markets Increasing people s disposable income Industry restructuring & indigenous innovation Automotive Construction Consumer goods & food Electronics & communications Agriculture modernization Upgrading traditional industries Develop new strategic industries Services sector developmt DPC BI DTT Solae E&C DC&F DCP Pioneer Solae DPP industry board Auto, Food, 3C P&IP DPC DPT DTT E&C P&IP 14

15 DELIVERING SOLUTIONS IN CHINA China Technical Center enables market-driven innovation $Millions $400 $300 $200 REVENUE FROM NEW PRODUCTS 2008 $100 $ New products drive differentiation in the marketplace 15

16 DUPONT IN INDIA Revenue, $ Billions Excluding joint ventures 22% CAGR E PLANTS KNOWLEDGE CENTER Medhcal Plant TECHNICAL CENTERS Chennai Office OFFICES Madurai Plant DISTRIBUTION CENTERS 16

17 DUPONT IN INDIA AGRICULTURE FOOD New seeds Large mid-tier segment Solae offering in India staple food Penetration with Danisco offerings AUTO India hub for small cars & components Increased penetration PV Off grid applications PACKAGING Fresh fruits & vegetables DuPont s Innovation Strategy in India targets the domestic market 17

18 INDIA TRENDS AND DUPONT OPPORTUNITIES GROWTH TREND AGRICULTURE IMPLICATIONS Higher productivity Advanced technologies High yield hybrids Crop protection products Agri supply chains INFRASTRUCTURE ENERGY & AUTOMOTIVE DEMOGRAPHICS Public & private investment Roads, railways and defense expenditure Construction growth Small car hub Energy demand Renewable energy Higher disposable income Consumerism and retail Better quality, safer food Pigments for coatings Asphalt modifiers Eng polymers, Adv mat ls Building Materials Eng Polymers, Refinishes, Refrigerants Photovoltaics Nomex, advanced mat ls Mat ls for electronics & durables Advanced pkg sol ns Nutrition products Confluence of large market, strong local R&D and global leverage 18

19 DUPONT IN ASEAN Plants Offices Revenue, $ Billions Excluding joint ventures 13% CAGR E E 19

20 UNIQUE ASEAN MARKETS Additional $1B sales potential in 2020 AQUACULTURE AG & FOOD Increase yield, productivity, food security & health. PALM OIL 85% of world palm oil in Malaysia & Indonesia. Increase plantation productivity and crop value. PV Energy demand rising >2X global. Large off-grid PV need. PV module manufacturing migrating to ASEAN. OIL & GAS Large NOCs. Pipeline products and Enhanced Oil Recovery. BIOMATERIALS ASEAN- biomass based materials, chemicals and fuels. DuPont s Innovation Strategy in ASEAN targets unique ASEAN markets 20

21 DUPONT IN JAPAN Revenue, $ Billions 8.4% CAGR E DKK : DuPont Kabushiki Kaisha MDP : DuPont-Mitsui Polychemicals Co.,Ltd MDF : DuPont-Mitsui Fluorochemicals Co.,Ltd. TDFJ :Teijin DuPont Films Japan Limited TDC : DuPont-Toray Co.,Ltd. Remarks: - JV sales is on 100% basis. - Danisco sales are excluded. 16 joint ventures with leading Japanese companies significantly contribute to DuPont Japan sales 21

22 JAPAN: FUTURE MARKET TRENDS & GROWTH AREAS Future Market Trend Growth Area for DuPont in Japan Global Megatrends Increasing Food production Decreasing Dependence of Fossil Fuels Protecting Lives & the Environment Growing in Emerging Markets Japan Market Trends Improve productivity & quality Effective field utilization (small field, urban area etc.) Maintain good food quality for long-term Promote low carbon society Energy saving Alternative energy Renewable sourced energy and materials Aging society More needs for better life (safety, health, sustainable living) i Emerging Hi-tech (New technology will emerge from Japan and roll out to emerging markets) Automotive & Hi-Speed Train Electronics Energy Bio- Related Food Medical/ Healthcare HV/EV (Next Gen. Auto) Film-Insert-Mold Hi-speed Train LED / OLED Lighting Commercial Printing Medical Electronics Printable Electronics Photovoltaic (PV) Energy Storage Smart Grid Renewable sourced materials Industrial-Bio Specialty Food - Solae + Danisco Clean & Disinfect Sterilization ti Power aids 22

23 JAPAN S GLOBAL MARKET SHARE IN KEY INDUSTRIES Japan s Global Market Share in Key Industries 10,000 Information and telecommunications equipment 1. Japan is leading innovator and has No.1 market share in new & emerging Automotive and *Electronic systems *Broadest Offering Glo obal Market Size 1,000 1 Computer and information terminals Automobiles 2. Japanese system manufacturers and material suppliers are the incubator for Emerging Automotive & Electronic technologies for global l market AV equipment Telecommunications Semiconductors equipment Electronic parts Displays 100 Other electronic devices LCD materials LCDs Semiconductor materials PV modules Semiconductor Small motor mfg equipment for auto Wire harness Monocrystal Digital still cameras Multilayer printed silicon wafers OA 10 wiring boards Car navigation Laminated Car air conditioner Magnetic heads ceramic capacitor of HDDs Government Support Area White LCD polarizing plates LEDs PDP panel parts materials LCD fluorescent lamps End Products (AUTO) Components/Devices e (Emerging g Hi-Tech) LiB for cell phones Semiconductor laser End Products (ELEC) for optical disk drives 0.1 0% 25% 50% 75% 100% Global Market Share by Japanese Companies Semiconductor encapsulation materials Spindle motors for HDDs LCD phase difference films Hybrid car Motor / Inverter / Battery DuPont s innovation strategy in Japan targets next-gen collaborative science for automotive & electronic applications Source: Ministry of Economy, Trade, and Industry (METI), Gov t of Japan 23

24 INNOVATION MADE REAL DuPont Japan Innovation Center in Nagoya DuPont s collaboratory is providing solutions for Japan s leading advanced materials companies 24

25 JAPAN INNOVATION CENTER Recent Successes PA 610 for Radiator End Tank Bio-source materials (from castor oil) Calcium chloride resistance is key performance Bio PTT Sorona fiber (fabric) for Toyota SAI Head liner, sun visor, trim, contributed to 60% surface by Bio Material HTN Insulator parts for HEV Adopted in 3rd Prius (2008), further extension/adoption is planned for 4th Prius (2014), new HV (2012) etc. Application : Insulator parts such as power-cable connector, terminal connector,, bus bar, bobbin Bio PTT Sorona resin for Toyota Prius-alpha Adopted for instrument-panel air-conditioning system outlet 25

26 THE BUSINESS OF INNOVATION New DuPont Innovation Centers in Seoul, Taipei, Bangkok & Pune Seoul Taipei Bangkok Pune DuPont Innovation Centers to fuel local collaboration in key markets 26

27 KEY MESSAGES The megatrends of food, energy, and protection resonate globally In Asia, we see near-term opportunities and long-term growth tied to the growing population and expanding middle class Our innovation reach is expanding, with new innovation centers launched in Bangkok, Pune, Seoul and Taipei. Our strategy is working with +20% 2011E growth in Asia 27

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