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Ddnew industrial biosciences


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Ddnew industrial biosciences

  1. 1. Industrial Biosciences Jim Collins - President
  2. 2. Industrial BiosciencesMission Focused growth through bioprocessing technologies • Build on Genencor’s expertise in designing and operating cell factories • Leverage Pioneer’s relationship with growers • Apply DuPont’s capabilities in engineering and advanced materials Agriculture Industrial Advanced and Nutrition Biosciences Materials Intersection for innovation across DuPont’s competencies 2
  3. 3. Key Segments in Our Business Agriculture Industrial Advanced and Nutrition Biosciences Materials Bio-based products End use markets Bioactives Enzymes, proteins, Food, feed, cleaning, peptides paper, personal care BiomaterialsBioactives Biomaterials Biochemicals Carpet, textiles Biomaterials Biorefineries Biorefineries: Biofuels Ethanol Fuels Biobutanol 3
  4. 4. Focused on Three Bio-based Segments Serving a diverse set of customers Carbon Sources Conversion Bio-based Products End use markets Bioactives Enzymes, proteins, Food, feed, cleaning, Our Competitive Advantage peptides paper, personal care Starch Biomaterials Bio/chemical Sugars Bio/chemical transformation transformation Biochemicals Carpet, textiles BiomaterialsBiomass Biorefineries: Biofuels Ethanol Fuels Biobutanol 4
  5. 5. Based on Common Core Elements Agriculture Industrial Advanced and Biosciences Materials NutritionBioactives Biomaterials Core Elements • Renewable, bio-based inputs Core • Design and operation of cell factories • Deliver enhanced process and product sustainability Biorefineries 5
  6. 6. Industrial Biosciences Developing customer-driven solutions that enhance value creation, reduceOur Business environmental footprints, and improve health & wellness for end users $50B addressable market consisting of: Animal nutrition, food, cleaning/Our Markets detergents, textiles, carpet, personal care, feedstock processing, biofuels Bioactives = enzymes, peptides and performance proteins for markets such as food, animal nutrition, detergents, textilesOur Business Biomaterials = advanced materials and intermediates Segments manufactured with renewable feedstocks Biorefineries = products and technology for converting agricultural feedstocks into carbohydrates and fuels Long-term growth targets: sales +10-12% CAGR with 15-17% margins 6
  7. 7. Who We Are And Where We Work • Industrial BiosciencesDuPont Industrial Biosciences is comprised of more than 2500 dedicated colleagues worldwide • We discover and develop market-based biotechnology solutions at 8 global R&D sites • We produce a broad portfolio of products and manage 19 operations sites Production, Operations and Pilot Sites Research & Development Centers 7
  8. 8. Industrial Biosciences Sales Serving Customers in Multiple Markets Around the World Region Business Unit End Market Latin 2011E Sales: $0.7B* America Other Apparel Food Enzymes Asia Biorefineries Animal Pacific nutrition Carpet US & Canada Bioactives Biomaterials EMEA Detergent Feedstock enzymes processing* Segment sales include transfers. 8
  9. 9. Industrial Biosciences MarketsKey Market Trends & Opportunities Addressable Market: $50 Billion Market Growth Drivers 2011-2015E CAGR Market • Growing demand for protein in human diets Animal Nutrition $1.5 B • More efficient and sustainable animal 8 – 10% production Detergent • Rising affluence and demand for convenience Enzymes $1 B • Water and energy conservation 5 – 7% Food • Natural and “clean” label Enzymes $1 B • Improved processing and product shelf life 7 – 9% Renewable • Desire for performance and renewability claims Materials $20 B • Supply diversification and stability in feedstocks 2 – 7% • Energy supply diversification and environmental Biofuels $25+ B concerns 7 – 12% • Rural and “green” economy development 9
  10. 10. Industry Capabilities Landscape Application Feedstock / Aggregator Conversion Enzyme Supplier Catalysts / Biocatalysts Engineering Development DuPont DSM Novozymes Amyris Gevo Solazyme Abengoa Poet BP 1 2 Shell • DuPont strongly positioned across key steps in • Other participants range in breadth of offering value chain • Narrow / specialist players must partner to • DuPont provides unique integrated offerings access market1. Enzymes limited to cellulosic ethanol2. Participation primarily through partnerships 10
  11. 11. Customer Benefits / Opportunities R&D Phase Industrial Biosciences diversification Sustainability replacement Productivity Petroleum/ Launch Regulatory Safety and Feedstock chemical Health & Key R&D Programs 1 2 3 4 5 wellness Bioactives Feed enzyme system: Axtra® XAP Omega-3 Cold water washing Next generation feed enzyme Biosurfaces Biomaterials Flame retardant fiber for carpet Bio-THF BioIsoprene™ Biorefineries Grain processing: Spezyme® RSL Cellulosic ethanol BiobutanolR&D Phases: 1-Discovery; 2-Concept validation; 3-Prototype; 11 4-Scale up; 5-Launch preparation
  12. 12. BioactivesNew Feed Enzyme SystemSpecifically designed to help US broiler producers meet the challenge of rising feed costs • Lower feed costs • Improved calorie conversion • More uniform birds • Proven value in antibiotic growth promoter free nutrition • Demonstrated net feed costs savings of at least $7 per ton (5%) DuPont science delivers radical feed cost savings 12
  13. 13. BiomaterialsBioIsoprene™ monomer • Provide significant raw material cost savings vs. synthetic and natural rubbers • Enable cost-competitive replacement of natural rubber • Build platform to access multi-billion dollar C5 chemical opportunity • Partner to produce isoprene monomer for Goodyear’s polyisoprene process • Pilot plant construction target: 2012 13
  14. 14. Global Biofuels Market Biofuel Demand by Type 2010-2050 Large and Growing Addressable Market (Source: IEA 2010-11) 250 Production surpassed 28 B gallons in 2010 (3% of total road transport fuel) Ethanol – conventional (corn) More than 50 countries have enacted biofuel 200 Ethanol – cane targets/mandates -- expected to reach >45 B gallons by Ethanol – cellulosic 2020, or >$100B market Biodiesel – conventional Key drivers: energy independence; tech advancement 150 Biodiesel – advanced (“green” jobs); rural development; reduction of greenhouse Biojet gasesB gals Biomethane 100 Industry Challenges for Meeting Demand Economies of scale and existing infrastructure still favor fossil fuels 50 Acceptance of technology risk and capital intensity required for capacity build-out Policy stabilization and consistency are critical. Change or 2010 2020 2030 2040 2050 uncertainty discourages investment 14
  15. 15. Cellulosic EthanolCommercialize lower-cost, lower-capital production technology for biofuels from non-food feedstocks • Operating demonstration scale facility in Vonore, TN. Generating data for scale up • 2011 field stover harvest confirmed economics for biomass delivery • Engineering and front-end loading Market/Customers underway for Iowa site Biofuel producers Refinery operators • Deployment strategy includes commercial operations, licensing model and merchant enzymes 15
  16. 16. Major Biorefinery Program Updates Grain Processing Cellulosic Ethanol Biobutanol • Commercial business serving grain • Demo facility in TN proving out • JV demo facility in UK complete ethanol, sweeteners, and commercial economics biochemicals industries • 2011 field stover harvest confirmed • Process units being commissionedToday economics for biomass delivery for integrated operation • Commercial stover biorefinery site • Negotiations in progress for first purchased in Iowa commercial partnerships • Continuous productivity increases • First ethanol plant conversion • Commercial production for cost and efficiency • Commercial production of 2012 improvements • Multiple licensees for process biobutanol technology– 2014 • Expanded enzyme offerings and • Multiple licensees of biobutanol processing technology • Expanded value offerings technology 2015 • Development of integrated • Additional offerings and technology • Additional offerings and technology bioprocessing refinery extensions extensions– 2020 16
  17. 17. Driving Profitable Growth Trichoderma grows in long Cell mass limited to a filaments resulting in a fragmented, lower viscosityContinuous Improvement highly viscous broth form • Changing the way the host strain grows, lowers broth viscosity • Frees up fermenter capacity • Avoids additional capital investment Productivity • Cost discipline • Integration synergies • Capacity Release - Optimization of cell factories 17
  18. 18. Industrial Biosciences 2012 and Long-term Priorities Sales and Margin Performance • Deliver on Key Growth Opportunities $0.7 – Broaden portfolio through innovation and application development – Strong growth in developing markets – Penetrate new market segments 10% – Launch new technologies for feedstock processing – Commercialize biofuels • PTOI Margin – Capture integration synergies – Scale up biofuel technology licensing – Drive cost and capital productivity 2011E Sales ($B)* Pre Tax Margins (%)** Long-term growth targets: sales +10-12% CAGR with 15-17% margins * Segment sales include transfers.* * Excludes significant items. Refer to company website for detailed 18reconciliations of non-GAAP measures.