Credit Suisse Chemical & Ag Science Conference Ellen Kullman Executive Vice President E. I. du Pont de Nemours and Company September 17, 2008 New York
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 www.dupont.com. 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 "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 forward-looking statements as a result of future developments or new information.
3 DuPont A Market Driven Science Company what you should expect Robust product pipelines End-user relevance Faster growth in emerging markets Sustainable solutions
4 2008-2010 Acceleration Plan Sales* ($ billions) $40 5% CAGR 04-07 7-9% CAGR $38 07-10 $36 $20 Growth Trend Organic** growth 6-7% Acquisitions 1-2% $0 2004 2005 2006 2007 2010E * Net Sales excludes Textiles & Interiors in 2004 to show comparable Net Sales over the period 04-10E. 2.4% 04-07 CAGR including Textiles & Interiors. ** Organic sales represent base business volume and price growth.
5 Key Areas for Acquisitions Advanced Materials Industrial Services Electronic Materials Selective Barriers BioSciences Personal Protection Sustainable Buildings Alternative Energy Agriculture Sustainable Materials Criteria Improves Market Access Adds to the Product Portfolio Provides access to new Technology Drives Productivity
6 2008-2010 Growth Plan Grow revenue faster Capture gains in agriculture & opportunities in DuPont Applied Biosciences Expand Safety & Protection Increase penetration in emerging markets Acquire businesses with unique synergies Extend productivity gains by $1.7B Net Sales* 07-10 7-9% Growth Segment PTOI* Ex-Pharma 2008-2010 Increase Velocity EPS* 2008-2010 Growth Continues $40 $20 5% CAGR 04-07 $ billions $6 $5 $4 $3 7% CAGR 13% CAGR $4 $3 $2 $2 $1 $1 $0 2005 2006 2004 2007 2010E 0 2004 2007 2010E $0 2004 2005 2006 2007 2010E 2007 * All data excludes significant items. Segment PTOI excludes Pharmaceuticals and 2004 also excludes Textiles & Interiors.
7 2008-2010 Sales Growth for Emerging Markets * 2007: $7.8B (26% of Total Sales) $14 $B $12 $10 $8 $6 $4 16% CAGR 13-15% CAGR Emerging Asia Emerging EMEA Latin America $2 $0 2003 2004 2005 2006 2007 2008 2009 2010 * Refer to the company s website for a definition of emerging markets.
8 Emerging Markets: 2008 YTD Growth = 24% Poland, +40% Hungary, +32% Russia, +24% China, +18% Mexico, +12% Brazil, +28% Turkey, +38% Thailand, +18% Argentina, +14% South Africa, +19% India, +27% Strong growth across each of the Emerging Regions
MARKET PENETRATION Strategy to Grow Outside the U.S. EARLY 3 stages of development Stage 1 Build Market Access Stage 2 Strengthen Capability to Serve Expand sales force Leverage inside sales Upgrade distribution/go direct Enhance technical support Local language emarketing Add regional warehouses Build local talent Open local sales office Establish distributor relationships Local language MC and sales collateral Build base with existing offerings Build / reinforce DuPont brand Stage 3 DUPONT COUNTRY DEVELOPMENT Optimize Market Presence Industry marketing specialists Regional technical laboratories Local application and product development Selective regional manufacturing MORE MATURE 9
10 BRIC Countries
11 DuPont in Brazil Key Locations 2007 Sales ~$1.5B ~ 3,000 Employees Palmas Sorriso Camaçari Formosa Plants Technical Centers Offices Joint Ventures Itumbiara Planaltina Uberaba Paulínia Barra Mansa Toledo Guarulhos Alphaville Sta. Cruz do Sul Esteio
Brazil s Growth Trends Match DuPont Competencies 12 Growth Trend AGRICULTURE Higher internal demand for food and increased food exports DuPont Opportunities Biotech corn for food / feed Packaging alternatives Matching DuPont Platforms A&N PM AUTOMOTIVE Fast growth in local demand and increased availability of credit Low VOC paints Engineered plastics C&CT PM OIL & GAS Expansion to recently discovered oil reserves Technology solutions for deep water extraction Safety consulting Well coatings and insulation S&P E&CT PM SUGAR CANE Continued development and expansion of value chain 2 nd generation biofuels & biobased materials Safety & environmental consulting A&N S&P
13 Example: Pioneer seeds Stage 3 Specialized technical excellence and local R&D Intense focus on needs of high tech farms Strong Pioneer brand recognized for quality and technology
14 DuPont in Russia Key Locations 2007 Sales ~$300 Million ~300 Employees Plants Technical Centers Offices Joint Ventures Distribution Centers
Russia s Growth Trends Match DuPont Competencies 15 Growth Trend TRANSPORTATION Infrastructure being updated (rail & road) and automotive boom BUILDING & CONSTRUCTION Massive spending on infrastructure ENERGY Oil and gas as customer and source of funding Power infrastructure DuPont Opportunities Hytrel components for railways Typar and Elvaloy for roads Waterborne paint technology for OEMs and body shops Tyvek weatherization systems and Corian solid surfaces Suva and Isceon refrigerants Elvaloy and Ti-Pure for roofing/wall applications STOP safety consulting DuPont Clean Technologies Nomex protective apparel Matching DuPont Platforms C&CT PM S&P PM E&CT S&P C&CT FOOD (Quantity & Quality) 20 million hectares arable land not cultivated Need for healthier lifestyles Corn, sunflower, & soy products Herbicides and other crop protection chemicals Surlyn and other packaging solutions A&N PM
Example: Building Innovations Stage Stage 1 2 16 Expanding market access Local technical competency Strong DuPont brand presence Tyvek in commercial and residential construction Corian reception in Moscow Hotel
17 DuPont in India Key Locations 2007 Sales ~$400 Million ~900 Employees Plants Technical Centers Offices Joint Ventures Distribution Centers
18 DuPont Knowledge Center Hyderabad, India Biotech Lab opened April 2008 Complete center opens by end of 2008 Basic Research Product Application Development Engineering Design Services Intellectual Property Services Bioinfomatics
19 India s Growth Trends Match DuPont Competencies Growth Trend DEMOGRAPHIC CHANGE Younger population and more working women DuPont Opportunities Kapton films for consumer electronics Teflon in non-stick cookware Corian solid surfaces Matching DuPont Platforms E&CT S&P AGRICULTURE 142MM hectares cultivated land but need to double productivity strong focus by government Adoption of biotech corn Hybrid rice Food packaging solutions A&N PM INFRASTRUCTURE Massive public and private investments to upgrade and extend Hytrel components for railways Elvaloy asphalt modifiers Ti-Pure pigments for coatings and plastics PM C&CT MANUFACTURING Capitalize on large, talented labor pool and rapidly growing domestic market Engineered plastics in automotive industry Packaging and protective apparel in pharmaceuticals PM C&CT S&P
Example: Engineering Polymers Stage Stage 2 3 20 Application development leadership Leveraged global and local capabilities Product quality and reliable supply 2 nd largest rail network in the world expanding and upgrading technology Hytrel washers, railpads, and axle boxes
21 DuPont in China Key Locations 2007 Sales ~$1.5B ~6,000 Employees Plants R&D / Technical Centers Offices Joint Ventures
22 China s Growth Trends Match DuPont Competencies Mega Trend DEMOGRAPHIC CHANGE Aging work force Supply of cheap labor ending DuPont Opportunities Plasma Display Panel Light Emitting Diode High Speed Train Biotech Research JV Matching DuPont Platforms A&N E&CT PM AGRICULTURE Greater demand for agricultural commodities Specialty Crops (Rynaxypyr, fungicides, insecticides) Hybrid Rice Expansion of Seed JVs A&N ENVIRONMENT Sustainable development Clean air and water Resource conservation Photovoltaics Clean Technologies Biofuels & Biomaterials E&CT S&P RURAL DEVELOPMENT Balanced economic dev t Wealth distribution Social equity New TiO2 Plant Farmers Service Centers Sales Expansion into 2nd and 3rd tier Cities A&N E&CT PM
23 Example: Photovoltaics Stage Stage 2 3 Leveraged global and local capabilities Focus on customer needs for efficiency and process optimization Multiple investments to support continued industry growth and development c-si a-si
24 Opportunities for Penetration Fast Growing Markets Country GDP Growth Forecast* Low DuPont Penetration 12% 8% 4% 0% Brazil Mexico Argentina Turkey S. Africa Russia 2007 2008 2009 China India Indonesia DuPont Sales % GDP PPP 0.10% 0% USA Brazil Mexico Argentina Latin America Russia S. Africa Turkey Emerging EMEA China India Indonesia Emerging A/P Major opportunities for growth: Rapid GDP growth & increase DuPont penetration *Source: Global Insight and DuPont Economist's Office
25 DuPont A Market Driven Science Company what you should expect Robust product pipelines End-user relevance Faster growth in emerging markets Sustainable solutions