DuPont. Delivering Solutions. Delivering Growth. John Ranieri Vice President DuPont Applied BioSciences

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1 DuPont Delivering Solutions. Delivering Growth. John Ranieri Vice President DuPont Applied BioSciences 2010 E.I. du Pont de Nemours and Company. All Rights Reserved.

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 Forward Looking Statements During the course of this presentation we may make forward-looking statements or provide forwardlooking information. All statements that address expectations or projections about the future are forward-looking statements. Some of these statements include words such as "expects," "anticipates, "plans," "intends," "projects," and "indicates. 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 economic conditions, competitive pressures, challenges associated with research and development, market acceptance of new products, and regulatory approval. We urge you to review DuPont's SEC filings, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, for a discussion of some of the factors which could cause actual results to differ materially. The Company does not undertake to update any forwardlooking statements as a result of future developments or new information. 2

3 The DuPont Company 2009 Sales $2.8 B $1.9 B DUPONT SAFETY & PROTECTION DUPONT ELECTRONICS & COMMUNICATIONS $8.3 B DUPONT AGRICULTURE & NUTRITION $26.1B* $5.0 B DUPONT PERFORMANCE CHEMICALS $4.8 B $3.4 B DUPONT PERFORMANCE MATERIALS DUPONT PERFORMANCE COATINGS * Includes $.1B in other sales. Total company sales exclude transfers 3

4 Highlights from November 2009 Investor Day Revenue Growth $ billions ~10% CAGR E EPS Growth $ per share ~20% CAGR E $26 $ E 2009 * 2012E EPS growth of ~20% CAGR E: Underpinned by ~30% segment earnings CAGR E * EPS shown excluding significant items. See company website for detailed reconciliations of non-gaap measures. 4

5 Megatrends Opportunities Megatrend DuPont Solutions Goals Increasing Food Production GoalsDecreasing Dependence on Fossil Fuels Goals Protecting Lives Goals Growing in Emerging Markets Seeds, crop protection, food & nutrition products, and food packaging materials PV, fuel cell components, energy efficient Tyvek materials, lightweight composites for transportation, biofuels, biomaterials Kevlar, Nomex and Tyvek for worker protection, SentryGlas, safety services, environmental protection material solutions Agricultural products, food packaging, materials for construction & infrastructure projects, PV Strong Renewable Products Portfolio Megatrends Drive Opportunities for Tailored, Differentiated Offerings & Market Partnerships 5

6 Applied BioSciences Our Mission Deliver substantial revenue and earnings growth, through the application of biotechnology and materials know-how to develop and commercialize superior-performing, sustainable solutions targeting large addressable markets. By 2015: $1 Billion Revenue and >$250 Million Pretax Earnings 6

7 DuPont Applied BioSciences Portfolio Status BioMaterials Bio-PDO Sorona Omega-3 BioSurfaces BioMedical Rapid growth & expansion Rapid growth & expansion Market entry New targets New partnership BioFuels Cellulosic Ethanol Biobutanol Demonstration unit operating Demonstration unit under construction Broad Portfolio of Businesses in Large, Growing Renewables Market 7

8 Highlights from Investor Event May 11 BioFuels BioMaterials Cellulosic Ethanol Demonstration Plant Vonore, TN Bio-PDO Production Loudon, TN 8

9 Applied BioSciences Recent Highlights Met Aggressive Milestones Since 2007 BioFuels Cellulosic ethanol JV with Danisco Biobutanol JV with BP Biobutanol test: >1 million vehicle miles 3 DOE grants & 2 state grants Cellulosic ethanol demo plant operating Biobutanol demo unit 3Q10 start-up BioMaterials Loudon Bio-PDO facility expansion Sorona units in USA at 4X productivity Two Sorona polymer tollers in China 2X growth of SmartStrand carpet Commercial carpet launched with Sorona New Harvest Omega-3 into >600 GNC stores Commercialization Continues Across ABS Portfolio 9

10 Global Biofuels Market Bgals/yr Global Biofuels Market Cellulosic Cellulosic Sugarcane Sugarcane Grain Grain Large Addressable Market 2010: $50B market 2020: ~$100B market 600 more plants are needed in next 10 years Projected to rise to 20% of transportation fuel supply Large service economy Drop-in fuels and non-food feedstocks needed Key Drivers Government Goals and Mandates Support: Energy independence and security Growth of rural communities and economies Reduction of greenhouse gases Constraints on the use of food Green jobs 10

11 DuPont Enables Growth of the Biofuel Industry Cellulosic Ethanol: Non-food Feedstocks Biobutanol: Better Fuel Advantages: >60% greenhouse gas reduction Non-food sources and marginal land Multiple feedstock available Excellent income for farmers Advantages: Drop-in fuel High blends without infrastructure changes Refinery can use more fractions of oil Higher energy content Low Cost, Low Carbon, Scalable, Sustainable 11

12 Cellulosic Ethanol DuPont has partnered with Danisco to form DuPont Danisco Cellulosic Ethanol LLC Molecular biology & metabolic engineering Agriculture Process engineering Global commercialization capabilities Shared competencies Rich patent estate Integrated capability Customer & investor credibility Molecular biology & protein engineering Pathway engineering Integrated enzyme production competency: strain to fermenter to product 12

13 DuPont Danisco Cellulosic Ethanol Conversion Process Milling Pretreatment Saccharification Fermentation Separation High bulk density Minimize dirt, rocks Minimal capital Facilitate enzymes Minimize inhibitors Mild process High solids High sugar yield High sugar titers Low enzyme loading Minimize inhibitors C5/C6 utilization High ethanol yield High ethanol titer Recover product Recover lignin Recycle water Integrated Science is Key to Low Cost 13

14 License // Produce Cellulosic Ethanol Commercialization Plan # of Plants to Meet Mandate* Licensing DDCE to start licensing in 2011 Near term: first mover for market penetration and location advantage Focus on corncob and stover: negotiations underway for multiple plant roll-out Focus on first mover: multiple plant licenses Extend to switchgrass and sorghum 200 Participation in Production 100 Use insights to choose best assets Secure advantaged locations to ensure best economical plants Augment with margins from engineering alliances, operating and support services *25 million gal/yr/plant DuPont to License Technology and Participate in Production 14

15 Biobutanol DuPont has partnered with BP to form Butamax Advanced Biofuels LLC Molecular biology & metabolic engineering Agriculture Process engineering Global commercialization capabilities Shared competencies Rich patent estate Integrated capability Customer & investor credibility Global fuels marketing and retail Fuels blending and testing: fleet, engine, OEM 15

16 Biobutanol Value Proposition Biobutanol delivers significantly improved logistics & fuel performance across the value chain Value Attributes Refinery efficiencies Blending value Distribution flexibility Cheaper to blend and higher blend levels Compatible with retail and distribution infrastructure Compatible with existing engine designs and other materials Value* Ethanol Biobutanol Lower distribution costs Higher energy density (26%) Synergistic with ethanol * Normalized ethanol price / Graph illustrates sources of value / Not to scale 16

17 Technology Technology Progression Extensive Biobutanol In-Use Testing by BP In-house testing: >1.3 million miles in standard vehicles Vehicle and engine testing under controlled conditions Retail Infrastructure testing Successful transition 250,000 fill-ups: ~80 million miles driven BP p.l.c. BP p.l.c. BP Engine Testing. 17

18 License // Produce Biobutanol Commercialization Plan Bgals/yr Global Biofuels Market Licensing and Marketing Roll-out with 1 st generation partners Market biobutanol to fuel companies Drive value proposition in large markets Cellulosic Sugarcane Grain Participation in Production Use insights to choose best assets Secure advantaged locations to ensure best economical plants Augment with margins from engineering alliances, operating and support services Today: >200 Grain Ethanol Plants, >400 Sugarcane Ethanol Plants 18

19 DuPont BioFuels Low Cost, Low Carbon, Scalable, Sustainable Business Direction BioFuels Earnings & Global Demand Demonstrate low cost and capital technology Commercialize cellulosic ethanol & biobutanol Enable partnerships & alliances Value through licensing, service & production Seize first mover advantage PTOI, $ in millions Billions of gallons E 2015 E 2020 E 0 $ Million PTOI in 2015, Growing to >$500 Million in 2020 ~$200 Million Average Investment Per Year

20 BioMaterials Business Addressable Markets Bio-PDO Industrial Fluids & Personal Care Sorona Flooring, Apparel, Automotive Omega-3 Nutrition & Aquaculture BioSurfaces Personal Care & Industrial Markets BioMedical Surgical Materials Broad Portfolio - Large Addressable Markets 20

21 BioMaterials Markets Large & Growing Business Opportunity BioMaterials Market Drivers $ billions Target markets of $90B in Apparel Personal Care Flooring Nutrition Demand for sustainable alternatives BioMe dical Unique performance attributes 100 Life cycle analysis for materials Renewable offerings growth: 10-20% CAGR in large markets Unique Products Advantaged in Growing Markets 21

22 Bio-PDO Business Enabling Building Block for Renewable Materials Most sophisticated microbial production system 100 million lb facility in Loudon TN One of the world s largest aerobic facilities Bio-PDO business advantages: Significantly lower cost of manufacture 50% smaller environmental footprint Large markets for new Bio-PDO applications: Sorona, Zemea, Susterra & Cerenol 35% capacity expansion by mid-2011 Next plant startup targeted for 2013 Bio-PDO Propanediol Breakthrough Innovation for Industrial Biotechnology 22

23 Sorona Business Advantaged Integrated Cost of Manufacture & Low Capital Intensity Addressable Markets Unique product attributes driving adoptions Advantaged cost of manufacture & low capital intensity Life cycle benefit Flooring $3 B Bio-PDO TM Sorona Polymer Apparel $8 B Automotive $1 B Packaging $1 B DuPont Sorona - Novel Product Attributes Driving Significant Growth 23

24 Bio-PDO and Sorona Value Capture Model Technology Leverages Installed Asset Base Across Value Chain Upstream Downstream Low Cost Fermentation Process Polymer Asset Conversion Capability Global Fiber Partnerships Feedstock/site flexibility Low capital/cost intensity Renewable material Utilize existing assets Rapid conversion Knowhow enabled Proprietary applications Enabling patents Brand DuPont biotechnology advantage Proprietary technology repurposes available asset infrastructure High Asset Productivity - Rapid Scale Up 24

25 Omega-3 Business Clean & Sustainable Source of EPA by Fermentation Human Nutrition Markets Branded supplement products for human nutrition Expanding globally to mass merchandisers & supplement channels Partnered with Futurebiotics and GNC Aquaculture Markets Establishing market partnerships with category leaders Accelerated fish feeding trials & regulatory milestones Pacing rapidly towards market introduction Business Plan Generational technology plan driving cost advantage Staged scale up as technology is optimized Utilizing existing fermentation capacity Target global large-scale capacity addition New technology integrated production process Next Transformational Proofpoint for Industrial Biotechnology 25

26 DuPont Applied BioMaterials Transformational Portfolio of Businesses Delivering Significant Growth Business Direction Expand Bio-PDO Expand and diversify Sorona Commercialize Omega-3 s Develop BioSurfaces for personal care Commercialize BioMedical products BioMaterials Revenue $1 billion $200 million 2010E 2015E $1B Revenue Business by Leader in Renewable Materials 26

27 Applied BioSciences Business Direction BioMaterials BioFuels Goals Goals Leader in renewable materials Track record of commercial success $1B revenue by 2015 at ~15% pretax margin Leader & enabler in global renewable fuels Develop world class leading technology $ million pretax earnings by 2015 Direction Expand Bio-PDO Expand and diversify Sorona Commercialize and expand Omega-3 s Develop biosurfaces for personal care Commercialize biomedical products Direction Develop low cost and capital technologies Seize first mover advantage Enabling partnerships & alliances Capture value: Technology licenses Production in advantaged locations Clear Targets. Critical Actions. Capturing Value. 27

28 DuPont Applied BioSciences WHY We Will Deliver Large, addressable renewables markets Advantaged biotechnology Access to production agriculture Global reach into key markets Strong complementary partnerships Value Proposition: Superior Performance, Cost Effective & Renewable 28