Tom Connelly Executive Vice President & Chief Innovation Officer Industrial Biosciences and Performance Materials 1
Research and Development 2
Science is the Growth Engine for the Company Agriculture & Nutrition Bio-based Industrials Advanced Materials Seeds Traits Crop Protection Specialty Food Ingredients Enzymes Biomaterials Biofuels Biochemicals Electronic Materials Protective Materials Alternative Energy Advanced Polymers Advanced Processes $ 5.5B* new product revenue $ 0.5B* new product revenue $ 4.1B* new product revenue Integrated Science is a Competitive Advantage *2012 revenue from products introduced in the last four years 3
We Apply our Science to Solve Some of the World s Biggest Challenges A global network working together to accelerate innovation 4
Our Broad Capabilities Enable Pathways for Future Growth Particle & Dispersion Science Catalysis Precision Patterning Fiber Science & Engineering Fluoro Chemical & Polymer Synthesis Polymer Synthesis Surface & Colloidal Science Film Fabrication Inorganic / Organic Synthesis Rheology Control Inorganic- Organic Composites Polymer Processing Biochemistry Chemical Engineering Formulation Science Nanoscience Metabolic Engineering Nutrition Science Molecular Biology Fermentation Engineering Agronomy Plant Physiology/ Disease Microbiology Conventional Breeding Gene Recombination & Regulation Cell / Tissue Culture Protein Engineering Molecular Breeding Genomics Bioinformatics Entomology Plant Genetics Material Sciences Chemical Sciences Biological Sciences 5
Bringing Integrated Science to Life DuPont Pioneer hybrids DuPont enzymes DuPont microorganism Carpet Fiber Apparel DuPont Sorona Auto Corn Sugars Bio-PDO Personal Care Bio-PDO & Sorona Polymer Enterprise Delivering $300+ MM Revenue Industrial 6
Billions $ Science & Technology is Delivering Growth Now New Product Sales * (NPS) % of Total Sales from New Products 2012 New Product Sales by Segment ($10B) 12 10 8 6 4 27% 32% 31% 28% 29% Nutrition & Health 6% Safety & Protection 6% Performance Chemicals 6% Industrial Biosciences 5% Agriculture 48% 2 2008 2009 2010 2011 2012 Total NPS NPS% Electronics & Communications 12% Performance Materials 17% *New product sales defined as products introduced in the last four years 7
Strong and Balanced Pipeline Demonstrated market-driven innovation, near & long term growth Discovery Development Launch Automotive TPC Bio-Isoprene Corn: New MOA Insect Control Kevlar Tire Innovation Bio-THF Probiotics Zytel Next Gen Nylons Personal Care Enzymes Biobutanol Cold H2O Enzymes Food Protection Silicon Ink OLED Cellulosic Ethanol Cyazypyr Plenish PV: Ionomer Encapsulant Opteon YF AcreMax Seed Treatment Corn: Intrasect Canola Next Gen Fluoropolymers PV: Front side silver paste Kevlar AP Agriculture and Nutrition $0-100MM $100MM- 500MM $500MM+ Bio-based Industrials Advanced Materials *Circle size indicates estimated peak year revenue 8
Performance Materials 9
Performance Materials 2012 Segment Sales - $6.4B* Major Product Group Regions Engineered parts 5% Other 3% Intermediates 3% Latin America 8% Vinyl polymers 8% Elastomers 9% Engineering resins 47% EMEA 28% U.S. & Canada 33% Ethylene copolymers 25% Asia Pacific 31% *Segment sales includes transfers 10
Performance Materials Key Markets Markets Market CAGR 2012-2017 Trends % of 2012 Sales Packaging 4-5% Convenience, affordability, enhanced performance, sustainability and down-gauging 11% Automotive 3-5% Durability, cost-efficiency, and light-weighting for improved fuel efficiency in autos 38% 3-5% Improved performance, durability, lower cost, reduced maintenance 29% Industrial/Construction Consumer/Electronics Personal Care 3-5% Advanced aesthetic solutions, added functionality, lightweight, impact resistance 22% 11
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 www.renewable.dupont.com 12
Performance Materials Summary Key Growth Drivers Sales and Margin Performance Automotive Light weighting, increasing use of plastics $6.3 $6.8 $6.4 Packaging Global supply from Gulf Coast assets 17% 15% 19% Globalization Increased penetration in Asia Renewables Growth in renewable polymers 2010 2011 2012 Sales ($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. 13
Industrial Biosciences 14
Industrial Biosciences 2012 Segment Sales - $1.2B* Major Markets Regions Industrial 7% Apparel 4% Latin America 5% Food 7% Carpet 14% Detergents 17% Animal Nutrition 27% Fuels and Carbohydrates 24% Asia Pacific 20% EMEA 27% U.S. & Canada 48% *Segment sales includes transfers 15
Industrial Biosciences- Three bio-based segments, serving a diverse set of customers Business Units Market CAGR 2012-2017 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% 16
We are Delivering Innovation to our Core Markets Animal Nutrition Fabric & Household Care Axtra Enzymes Detergent Enzymes Lower feed costs Improved calorie conversion and more uniform birds Specifically designed for the US broiler market Tailored cold water protease to serve developed and emerging markets Breakthrough in enzyme technology Co-development and partner innovation model Combining Strong Customer Relationships with Science 17
Strategic partnerships to deliver on the potential of biomaterials Mohawk Goodyear Sorona Polymer BioIsoprene Industry-leading consumer satisfaction SmartStrand Silk - softest residential carpet yet Expansion into commercial segment Bio-based renewable alternative to petroleum-based isoprene Key raw material for production of synthetic rubber Collaborative research initiative with The Goodyear Tire & Rubber Company Consumer and Market Insights Drive Innovation SmartStrand Silk is a trademark of Mohawk Carpet Distribution, Inc. 18
We are Addressing the Key Imperatives for Biofuels Growth Non-food Feedstocks Better Fuels Cellulosic Ethanol Advantages: Biobutanol Advantages: >60% greenhouse gas reduction Non-food sources and marginal land Multiple feedstock available Additional income for farmers Drop-in fuel High blends without infrastructure changes Refinery can use more fractions of oil Higher energy content Entering the Commercialization Phase for Cellulosic Ethanol 19
Bgals/yr Capturing Value as the Technology Enabler in Advanced Biofuels Biofuel Demand by Type 2011-2023 Revenue Streams 60 50 Technology licensing Enzyme and fermentation microbe sales Biofuels sales 40 30 20 Cellulosic Sugarcane 10 Grain 0 2011 2013 2015 2017 2019 2021 2023 Three Revenue Streams in Advanced Biofuels 20
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 $0.7 Increasing use of sustainable materials driving biobased solutions 11% 14% Global sustainability mandates and energy security driving biofuels demand 2011 2012 Sales ($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. 21
Q&A with Tom, Doug, Diane and Jim Tom Connelly Executive Vice President & Chief Innovation Officer Performance Materials & Industrial Biosciences Doug Muzyka Senior Vice President and Chief Science & Technology Officer Diane Gulyas President DuPont Performance Polymers Jim Collins President DuPont Industrial Biosciences 22
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