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Dupont Slides Sanford Bernstein final 5 27-14

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  • 1. 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
  • 2. 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. 2
  • 3. 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
  • 4. 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 4
  • 5. Building a Higher Growth, Higher Value Company 5
  • 6. 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) 6
  • 7. 2013 Recognitions Reflect Our Commitments 7 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)
  • 8. 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 8
  • 9. 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 9
  • 10. Recent Strategic Decisions Advance Our Transformation Acquired Danisco Sold Performance Coatings Acquired Pannar Seeds (Pty) Ltd. Announced separation plan for Performance Chemicals Repurchased $3 billion of DuPont common stock* Redesigning business support 10 * From 2011 through March 31, 2014
  • 11. SegmentSales$inBillions $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 11 7% LONG TERM GROWTH TARGET
  • 12. 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 CHEMICALSDUPONT MISSION: Growth Differentiated and integrated science MISSION: Cash Generation Industry leadership and productivity Upcoming Performance Chemicals Separation 12
  • 13. …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 ScienceChemistry Biological SciencesEngineering Translating Science into Solutions FOOD 13
  • 14. 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 TOFROM Redesign of Business Support Underway 14
  • 15. 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 $12B 2009 2010 2011 2012 2013 CumulativeCapitalReturned ToShareholders($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 15 *
  • 16. 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 16
  • 17. 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

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