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    Lukach   clsa - final final Lukach clsa - final final Presentation Transcript

    • DELIVERING SOLUTIONS. DELIVERING GROWTH.Delivering Growth inAsia through InnovationCarl L kach LukachPresident – DuPont East AsiaNovember 7, 2011 © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.
    • Regulation G The Th attached charts i l d company i f h d h include information that d i h does not conform to generally accepted accounting f ll d i 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. 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 results 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 “plans,” “expects,” “will,” "believes," “intends,” and “estimates ” Although they reflect our current expectations these statements are not guarantees of future estimates. expectations, 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; and business or supply disruptions. The Company does not undertake to update any forward looking statements as a result of future developments or new information. forward-lookingDeveloping 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 on the Earnings News Release link on the Investor Center website at www.dupont.com. 2 © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.
    • DUPONT FULL YEAR FINANCIAL HIGHLIGHTS Full Year Sales $38-$39 2010: $31.5B, +21% $ , $ in Billions 2011E: $38-39B, +22% Full Year EPS* 2010: $3.28, +62% $3.97 - $4.05 2011E: $3 97 $4 05 +22% $3.97-$4.05, $ per share e Dividend Announced our 429th consecutive quarterly dividend Maintained our dividend during the recession* Excludes significant items. Refer to company website for 3 © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.detailed reconciliations of non-GAAP measures.
    • OUR INDUSTRY LEADERSHIP IN SCIENCEExternal recognition #1 in our industry for patent strength (The Patent Board) Five consecutive years for this award Top 50 Innovative Companies (MIT Review) Awarded in 2010 to firms that show the most innovation in commercializing new technologies World’s Most Admired Companies Top 50 (Fortune) The only company in our sector to be named to this list Zytel® PLUS “Most Innovative Use of Plastics Award” (SPE) A collaboration with General Motors for use of Zytel® PLUS in an engine cover application Best Place to Work in Large Industry (The Scientist) DuPont earned the top spot, Pioneer was number two 4 © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.
    • WE ARE APPLYING OUR SCIENCETo fi d l tiT find solutions t some really bi challenges: to ll big h ll FOOD ENERGY PROTECTION FEEDING THE REDUCING OUR KEEPING PEOPLE & WORLD DEPENDENCE ON THE ENVIRONMENT FOSSIL FUELS SAFE 5 © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.
    • TWO BILLION MORE PEOPLE BY 2050 Growth occurring in d G th i i developing regions i l di A i l i i including Asia Implications: need 70% more food production, additional energy to meet the growthSource: United Nations population division (2011) © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 6
    • ONE BILLION MORE MIDDLE CLASS BY 2020 Middle l Middl class growth concentrated i A i th t t d in Asia million Implications: rising incomes, more consumption of protein, and an enhanced lifestyleSource: Organization for Economic Cooperation and Development paper 285 (2010) © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 7
    • DUPONT GROWTH STRATEGY Driving innovation productivity and growth in developing markets innovation, productivity, 2010 Global pro forma sales $34.2B Developing regions: $11.1B or 32% Growing: Asia ‐ Asia contributed to 23% of 2010 Developing pro forma revenue and growing 14% Asia ‐ Broadening market access: US Developed 36% The Danisco acquisition has 9% broadened our reach in enzymes and food EMEA‐Developing 7% Megatrends: Food, energy Food energy, and protection are increasing in importance for EMEA ‐ Canada Developed  developing markets 3% 20% Latin America 11% 8 © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.
    • DUPONT GROWTH STRATEGYBuilding three world leading integrated competencies world-leading, As a premier market-driven science company, market driven we will generate superior shareholder returns by integrating across the ag-biotech-material space: Advanced Ag & Nutrition Materials Seeds Electronic Materials Traits Protective Materials Ag Chemicals Alternative Energy Specialty Food Advanced Polymers Ingredients Advanced Processes 9 © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.
    • INVESTING FOR GROWTHDuPont 2010 pro forma R&DTo be a premier market-driven science company and generate superiorshareholder returns by differentially managing our portfolio: Decreasing Dependence on Fossil Fuels 15% Megatrends Protecting People Chemistry and the Environment Engineering 11% Materials Science Increasing Food Nanotechnology Production 60% Industrial Biotech 9% Chemicals and Ag Biotech Materials M i l 5% Electronics 10 © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.
    • DUPONT ASIA PACIFIC GROWTH~20% revenue growth for 2011E 20% ~20% Revenue, $ Billions• Growth led by electronics, Excluding joint ventures 7.3automotive, packaging, andagriculture 5.5 55 5.2• Geographic expansion andmarket penetration playing akey role 2008 2009 2010 2011E Demonstrated growth through market-driven science © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 11
    • GROWTH DRIVERS FOR DUPONT IN ASIA PACIFICFOUR ELEMENTS:TECHNOLOGY DRIVEN GROWTH •P f Performance Polymers f auto P l for t • Emerging bio-based polymers • Advanced photovoltaic materials • New crop protection & seed productsMARKET PENETRATION GROWTH In economies • China “Go West” program with GDP • India g growth rates • ASEAN 2-3X developed • New products for local markets marketsGROW WITH GLOBAL INDUSTRY LEADERS • Automotive • ElectronicsGROWTH IN NEW MARKETS • Food • Energy 12 © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.
    • DUPONT IN GREATER CHINAabout 22% sales growth from 2010 to 2011ERevenue, $ BillionsExcluding joint ventures 24% CAGR 2008-2011E Plants R&D/Technical Centers Offices Joint Ventures DuPont’s innovation strategy in China targets large new markets © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 13
    • CHINA’S 12th 5-YEAR PLAN Highlights Major Opportunities Relevant to DuPont Global Megatrends China Opportunities Implication • Higher yields • Pioneer • P&IP • Advanced techonology in Increasing food production • Solae • Qualicon agriculture & safety • DCP • Food industry• Increasing food • Food quality • Animal Health board • Food safety production • DPVS • New energy • Bio - fuel & Bio - material Decreasing dependence on • Energy efficiency gy y • DPP • New materials fossil fuels • DC&F • Bio-material • Industry board – Wind, Railway• Decreasing dependence • Water treatment & conservation • DSS • P&IP Protecting • Emission reduction • DC&F • E&C on fossil fuels lives & environment • New materials • DPT • Clean Technology • BI • Construction • BI Growing in emerging • DPP • industry board – • Infrastructure markets, urbanization & • DTT Auto, Food• Protecting lives infrastructure development • Electricity grid • DPC • P&IP • Mass transportation • DPT • Automotive • DPC • industry board – Increasing people’s • Construction • BI Auto, Food, 3C • Consumer goods & food • DTT• Growing in disposable income • Solae • P&IP • Electronics & communications • E&C developing markets k t • DC&F • DPC • Agriculture modernization • DCP • DPT Industry restructuring & • Upgrading traditional industries • Pioneer • DTT indigenous innovation • Develop new strategic industries • Solae • E&C • Services sector developmt • DPP • P&IP © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 14
    • DELIVERING SOLUTIONS IN CHINAChina Technical Center enables market driven innovation market-driven REVENUE FROM NEW PRODUCTS $Millions $400 $300 2008 $200 $100 $- 2007 2010 New products drive differentiation in the marketplace © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 15
    • DUPONT IN INDIA Revenue, $ Billions Excluding joint ventures 22% CAGR 2008-2011E PLANTS KNOWLEDGE CENTER TECHNICAL CENTERS Medhcal Chennai Office Madurai OFFICES Plant Plant DISTRIBUTION CENTERS © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 16
    • DUPONT IN INDIA • New seeds AGRICULTURE • Large mid-tier segment • Solae offering in India staple food FOOD • Penetration with Danisco offerings • India hub for small cars & components AUTO • Increased penetration PV • Off grid applications PACKAGING • Fresh fruits & vegetables DuPont’s Innovation Strategy in India targets the domestic market © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 17
    • INDIA TRENDS AND DUPONT OPPORTUNITIES GROWTH TREND IMPLICATIONS • High yield hybrids • Higher productivity AGRICULTURE • Crop protection products • Advanced technologies • Agri supply chains • Public & private investment • Pigments for coatings INFRASTRUCTURE • Roads, railways and defense • Asphalt modifiers expenditure • Eng polymers, Adv mat’ls • Construction growth • Building Materials • Eng Polymers, • Small car hub ENERGY & Refinishes, Refrigerants • Energy demand AUTOMOTIVE • Photovoltaics • Renewable energy • Nomex® advanced mat’ls Nomex®, mat ls • Mat’ls for electronics & • Higher disposable income durables DEMOGRAPHICS • Consumerism and retail • Better quality safer food quality, • Advanced pkg sol’ns • Nutrition products Confluence of large market, strong local R&D and global leverage © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 18
    • DUPONT IN ASEAN Plants Offices Revenue, $ Billions Excluding joint ventures 13% CAGR1.010 2008-2011E0.5050.0 2008 2009 2010 2011E © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 19
    • UNIQUE ASEAN MARKETSAdditional $1B sales potential in 2020 AQUACULTURE AG & FOOD Increase yield, productivity, food security & health. 85% of world palm oil in Malaysia & Indonesia. Increase PALM OIL plantation productivity and crop value. Energy demand rising >2X global. Large off-grid PV need. PV PV module manufacturing migrating to ASEAN. OIL & GAS Large NOCs. Pipeline products and Enhanced Oil Recovery. BIOMATERIALS “ASEAN- biomass” based materials, chemicals and fuels. DuPont’s Innovation Strategy in ASEAN targets unique ASEAN markets © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 20
    • DUPONT IN JAPAN DKK : DuPont Kabushiki Kaisha MDP : DuPont-Mitsui Polychemicals Co.,Ltd Revenue, $ Billions MDF : DuPont-Mitsui Fluorochemicals Co.,Ltd. TDFJ :Teijin DuPont Films Japan Limited 8.4% CAGR TDC : DuPont-Toray Co.,Ltd. 2008-2011ERemarks:- JV sales is on 100% basis.- Danisco sales are excluded. 16 joint ventures with leading Japanese companies significantly contribute to DuPont Japan sales © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 21
    • JAPAN: FUTURE MARKET TRENDS & GROWTH AREAS Future Market Trend Growth Area for DuPont in JapanGlobal Megatrends Japan Market Trends Automotive • HV/EV (Next Gen. Auto) & Hi-Speed p • Film-Insert-MoldIncreasing Food • Improve productivity & quality Train • Hi-speed Trainproduction  Effective field utilization (small field, urban area etc.) • LED / OLED Lighting  Maintain good food quality for • Commercial Printing Electronics long term long-term • Medical Electronics • Printable ElectronicsDecreasing • Promote low carbon societyDependence  Energy saving • Photovoltaic (PV)of Fossil Fuels  Alternative energy Energy • Energy Storage  Renewable sourced energy and R bl d d • Smart Grid materials • Renewable sourcedProtecting Lives & • Aging society – More needs Bio- materialsthe Environment for better life (safety, health, Related • Industrial-Bio sustainable living) t i bl li i ) • Specialty Food FoodGrowing in • “Emerging Hi-tech” - Solae + DaniscoEmerging (New technology will emerge from Japan and roll out to p • Clean & DisinfectMarkets Medical/ • St ili ti Sterilization emerging markets) Healthcare • Power aids © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 22
    • JAPAN’S GLOBAL MARKET SHARE IN KEY INDUSTRIES Japan’s Global Market Share in Key Industries 10,000 1. Japan is leading innovator and has No.1 Information and telecommunications equipment market share in new & emerging Automotive and *Electronic systems *Broadest Offering Automobiles 2. Japanese system manufacturers and 1,000 Computer and information terminals material suppliers are “the incubator” AV equipment for Emerging Automotive & Electronic Telecommunications Semiconductors technologies f t h l i for global market l b l k t obal Market Size equipment Electronic parts Displays 100 Other electronic devices LCD materials LCDs Semiconductor materials PV modules Small motor Semiconductor Semiconductor mfg equipment for auto Digital still cameras encapsulation materials Wire harness Monocrystal silicon wafers OA Glo Multilayer printed 10 wiring boards Laminated Spindle motors Car navigation Car air conditioner Magnetic heads ceramic capacitor for HDDs of HDDs Government Support Area White LCD polarizing plates LCD phase LEDs difference films PDP panel parts materials 1 LCD fluorescent lamps End Products (AUTO) d oducts ( U O) Co po e ts/ e ces (Emerging Hi-Tech) Components/Devices ( eg g ec ) LiB for cell phones Semiconductor laser End Products (ELEC) for optical disk drives Hybrid car Motor / Inverter / Battery 0.1 0% 25% 50% 75% 100% Global Market Share by Japanese Companies DuPont’s innovation strategy in Japan targets next-gen collaborative science for automotive & electronic applicationsSource: Ministry of Economy, Trade, and Industry (METI), Gov’t of Japan © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 23
    • INNOVATION MADE REALDuPont Japan Innovation Center in Nagoya DuPont’s collaboratory is providing solutions for Japan’s leading advanced materials companies © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 24
    • JAPAN INNOVATION CENTER Recent SuccessesPA 610 for Radiator End Tank• Bio-source materials (from castor oil)• Calcium chloride resistance is key performanceBioBi PTT Sorona® fiber (fabric) for Toyota SAI S ® fib (f b i ) f T t• Head liner, sun visor, trim, contributed to 60% surface by Bio MaterialHTN Insulator parts for HEV•Adopted in 3rd Prius (2008), further extension/adoption is planned for4th Prius (2014), new HV (2012) etc.•Application : Insulator parts such as power-cable connector, terminal , ,connector, bus bar, bobbinBio PTT Sorona® resin for Toyota Prius-alpha• Adopted for instrument-panel air-conditioning system outlet © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 25
    • THE BUSINESS OF INNOVATION New DuPont Innovation Centers in Seoul Taipei Bangkok & Pune Seoul, Taipei,Seoul Taipei Pune Bangkok DuPont Innovation Centers to fuel local collaboration in key markets © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 26
    • KEY MESSAGES The megatrends of food, energy, and protection resonate globally In Asia, we see near-term opportunities and long-term growth tied to the growing population and expanding middle class Our innovation reach is expanding, with new innovation centers launched in Bangkok, Pune, Seoul and Taipei. Our strategy is working with +20% 2011E growth in Asia © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 27
    • © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 28