Korea District Heating Corporation 071320 Algorithm Investment Report
Dupont Slides Sanford Bernstein final 5 27-14
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.
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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)
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7. 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)
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
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10. Recent Strategic Decisions Advance Our
Transformation
Acquired Danisco
Sold Performance Coatings
Acquired Pannar Seeds (Pty) Ltd.
Announced separation plan for Performance Chemicals
Repurchased $3 billion of DuPont common stock*
Redesigning business support
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* From 2011 through March 31, 2014
11. SegmentSales$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
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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
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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
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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
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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
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*
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
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