Dupont Slides Sanford Bernstein final 5 27-14

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SANFORD C. BERNSTEIN’S 30TH ANNUAL STRATEGIC DECISIONS CONFERENCE MAY 28, 2014 Ellen J. Kullman, Chair of the Board and CEO E. I. du Pont de Nemours and Company

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Transcript of Dupont Slides Sanford Bernstein final 5 27-14

Page 1: Dupont Slides Sanford Bernstein final 5 27-14

SANFORD C. BERNSTEIN’S 30TH ANNUAL STRATEGIC DECISIONS CONFERENCE

MAY 28, 2014

Ellen J. Kullman, Chair of the Board and CEO E. I. du Pont de Nemours and Company

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Regulation G During this presentation we may reference 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 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; inability to protect and enforce the company’s intellectual property rights; successful integration of acquired business and divestitures of underperforming or non-strategic assets; and successful completion of the proposed spinoff of the Performance Chemicals segment including ability to fully realize the expected benefits of the proposed spinoff. 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 under Key Financials and Filings on the Investor Center website at www.dupont.com.

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DuPont is a Science Company We work collaboratively to find sustainable, innovative, market-driven solutions to solve some of the world’s biggest challenges, making lives better, safer, and healthier for people everywhere.

Our Purpose

© National Geographic Image 3

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DuPont Segments, Businesses and Core Markets

DuPont Industrial Biosciences Core Markets: Industrial Enzymes | BioBased Materials

DuPont Performance Chemicals Titanium Technologies | Chemicals & Fluoroproducts

Core Markets: Industrials & Chemicals | Construction | Specialties | Plastics | Transportation

DuPont Agriculture DuPont Pioneer | Crop Protection

Core Markets: Seeds | Agricultural Chemicals

DuPont Safety & Protection Protection Technologies | Building Innovations | Sustainable Solutions

Core Markets: Industrial | Construction | Military & Law Enforcement | Transportation | Consumer

DuPont Performance Materials Performance Polymers | Packaging & Industrial Polymers

Core Markets: Transportation | Industrial | Packaging | Electrical/Electronics

DuPont Nutrition & Health Core Markets: Food Ingredients | Nutritional Products

DuPont Electronics & Communications

Core Markets: Photovoltaics | Consumer Electronics | Advanced Printing | Displays

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Building a Higher Growth, Higher Value Company

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DuPont Stock Performance

Graph assumes that DuPont common stock, the S&P 500 stock index, and the Dow Jones Industrial Average were each valued at $100 on December 31, 2008, and that all dividends were reinvested.

$100

$150

$200

$250

$300

$350

2008 2009 2010 2011 2012 2013

DuPont S&P 500 Index Dow Jones Industrial Average

(Versus S&P 500 Index and Dow Jones Industrial Average)

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2013 Recognitions Reflect Our Commitments

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National Safety Council Robert W. Campbell

Award

FORTUNE Magazine World’s

Most Admired Companies

Working Mother Magazine 100 Best

Companies

HRC Corporate Equality Index

S&P 500 Carbon Performance Leadership

Index (CPLI)

Carbon Disclosure Leadership Index

(CDLI)

CDP Global 500 Carbon Performance

Leadership Index

North America Dow Jones

Sustainability Index (DJSI)

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Decisions Driven by Three Strategic Priorities…

AGRICULTURE & NUTRITION

BIOBASED MATERIALS

ADVANCED MATERIALS

Extend leadership across high-value, science-driven

segments of the Ag and food value chains.

Develop world-leading industrial biotech

capabilities to create new businesses.

Grow leading position in differentiated

high-value materials.

Higher Growth, Higher Value Company Through Three World-Leading Positions

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INNOVATION GLOBAL REACH EXECUTION

…Together with Three Operational Priorities

© National Geographic Image

• Rigorous pipeline management

• Disciplined project execution

• Increasing return on R&D

• Driving penetration in fast-growing, developing markets

• Delivering ongoing productivity

• Optimizing resource allocation

• Returning cash to shareholders

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Recent Strategic Decisions Advance Our Transformation

Acquired Danisco

Sold Performance Coatings

Acquired Pannar Seeds (Pty) Ltd.

Announced separation plan for Performance Chemicals

Repurchased $3 billion of DuPont common stock*

Redesigning business support

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* From 2011 through March 31, 2014

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Segm

ent S

ales

$ in

Bill

ions

$0

$10

$20

$30

$40

2008* 2013

Performance Coatings

Performance Chemicals

Safety & Protection

Performance Materials

Nutrition & Health

Industrial Biosciences

Electronics & Communications

Agriculture

* Includes sales from Performance Coatings, classified as discontinued operations. ** CAGR calculated based upon Segment Sales and excludes Performance Coatings and Performance Chemicals in all periods presented.

Higher Growth Portfolio Delivered 8% CAGR from 2008 - 2013

Positioning DuPont for Higher Growth, Higher Value

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7% LONG TERM

GROWTH TARGET

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Will Create Two Highly Competitive Companies with Separate and Distinct Value Creation Strategies

SCIENCE & TECHNOLOGY DRIVEN

• Leading Technologies • Science Integration Across

Businesses • Strong Applications Development • Targets Secular Driven Growth • Innovative Products; Robust

Pipeline • Global Reach and Productivity

PROCESS TECHNOLOGY DRIVEN

• Leading Businesses • Customer Focused Application

Development • Low Cost Production • Capital Productivity • Sustainable Operator • Regulatory Leadership and

Advocacy

PERFORMANCE CHEMICALS DUPONT

MISSION: Growth Differentiated and integrated science

MISSION: Cash Generation Industry leadership and productivity

Upcoming Performance Chemicals Separation

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…COMPELLING MARKET INSIGHTS TO SOLVE WORLD SCALE CHALLENGES

WORLD CLASS INTEGRATED SCIENCE COUPLED WITH…

DuPont is on the Forefront of Another Wave of Innovation

Materials Science

Chemistry

Biological Sciences

Engineering

Integration of emerging biological sciences

ENERGY

PROTECTION

Materials Science Chemistry Biological Sciences Engineering

Translating Science into Solutions

FOOD

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PREPARING FOR PERFORMANCE CHEMICALS SEPARATION

• Eliminate stranded costs • Avoid margin impact from

deleveraging Performance Chemicals

RECASTING THE NEW DUPONT

• Benchmark business support • Redesign end-to-end processes • Simplify, standardize, digitize • Step-change improvement in

productivity

TO FROM

Redesign of Business Support Underway

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CAPITAL RETURNED TO SHAREHOLDERS HAS ACCELERATED

• Two dividend increases • $1B share repurchase with

Performance Coatings proceeds • Announced $5B share repurchase

program January 2014. Completed $1B in Q1; expect additional $1B in 2014. $1B

$3B

$5B

$7B

$10B

$0B

$2B

$4B

$6B

$8B

$10B

$12B

2009 2010 2011 2012 2013

Cum

ulat

ive

Capi

tal R

etur

ned

To S

hare

hold

ers

($B)

Cumulative Dividends Cumulative Buybacks

* Common dividends paid to shareholders

Dividends and Share Repurchase

Committed to a Strong Balance Sheet

Rising Amount of Capital Returned to Shareholders

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*

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7% 12% Sales CAGR Operating EPS CAGR

Ushering in the next era of innovation

OPERATIONAL PRIORITIES Innovation

Global Reach Execution

STRATEGIC PRIORITIES Extended Ag & Nutrition Leadership

Build Biobased Businesses Strengthen Advanced Materials

Long Term Growth Targets

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Copyright © 2014 DuPont or its affiliates. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ™ or ® are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.

Images reproduced by E. I. du Pont de Nemours and Company under license from the National Geographic Society.

© National Geographic Image 17