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DUPONT
    2002 Review


    Putting Science to Work
CORPORATE HIGHLIGHTS




(Dollars in millions, except per share)


Operating Results                                                                                            2002                                     2001
Net Sales                                                                                                 $ 24,006                                $ 24,726
Income before Cumulative Effect of Changes in
  Accounting Principles                                                                                   $ 1,841                                 $     4,328*
Net Income (Loss)                                                                                         $ (1,103)                               $     4,339*
Depreciation and Amortization                                                                             $ 1,515                                 $     1,754
Capital Expenditures                                                                                      $ 1,416                                 $     1,634
Research and Development Expense                                                                          $ 1,264                                 $     1,588

Financial Position, Year End
Total Assets                                                                                              $ 34,621                                $ 40,319
Total Debt                                                                                                $ 6,832                                 $ 6,814
Shareholders’ Equity                                                                                      $ 9,063                                 $ 14,452

Data Per Common Share
Income before Cumulative Effect of Changes in
  Accounting Principles – Diluted                                                                       $     1.84                              $     4.15*
Net Income (Loss) – Diluted                                                                             $ (1.11)                                $     4.16*
Dividends                                                                                               $     1.40                              $     1.40
Market Price Range                                                                                  $49.80 – 35.02                          $49.88 – 32.64

Other Totals, Year End
Shares of Common Stock Outstanding (millions)                                                                     994                                   1,002
Employees (thousands)                                                                                              79                                      79

*Includes a $3,866 gain from sale of DuPont Pharmaceuticals ($3.74 diluted earnings per share).




 This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address
 expectations or projections about the future, including statements about the company’s strategy for growth, product development, market position, expected
 expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects,”
 “anticipates,” “plans,” “intends,” “projects,” “indicates,” and similar expressions. These statements are not guarantees of future performance and involve
 a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully in documents filed with the Securities and Exchange
 Commission by DuPont, particularly its latest annual report on Form 10-K, as well as others, could cause results to differ materially from those stated.
 These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign
 currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including
 restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval
 and market acceptance; and seasonality of sales of agricultural products.
WE BEGIN OUR THIRD CENTURY...




                                              DuPont is a science company.
                                              We put science to work solving problems in ways that
                                              make people’s lives better, safer and easier.

                                              Our products and services are the result of our research
                                              and the knowledge we have gathered from more than
                                              two centuries of continuous operation around the world.
                                                   We are a company with a conscience. Every day,
                                              our employees come to work committed to living out our
                                              core values of safety, health, and environmental steward-
                                              ship; ethical behavior; and respect for people.
                                                   Customers and consumers everywhere know DuPont
                                              through daily contact with such trusted brands as Kevlar®
                                              brand fiber, Teflon® fluoropolymers, Tyvek® protective
                                              material and Corian® solid surfaces, as well as thousands
                                              of other products that touch every aspect of modern life.
                                              Our goal is to grow sustainably. To achieve it, we contin-
                                              ue to transform our company to stay competitive, reward
                                              our shareholders, and remain a vibrant and responsible
                                              global leader.
                                              OUR FIRST CENTURY
                                              DuPont began in 1802 as an explosives company. The
                                              company’s original product, black powder for guns and
                                              blasting, was a commodity essential to clearing land and
                                              building the infrastructure of frontier America. E. I. du Pont
DuPont Chemical Engineer Susan
                                              had learned to make this material while working under
Hennessey uses encapsulated bacteria
                                              the great French chemist Antoine Lavoisier. DuPont pow-
cells as a biological catalyst to produce
                                              ders were quickly recognized as superior in quality to
DuPontTM XolvoneTM, a readily biodegradable
solvent for cleaning metals and electronic
                                              other powders manufactured in the young United States,
parts such as computer circuit boards.
                                              and the company grew rapidly. By the end of the century,
                                              DuPont was also a leading manufacturer of high explo-
                                              sives and had begun its move into chemical products.
                                              OUR SECOND CENTURY
                                              In the 20th century DuPont became a global chemicals,
                                              materials and energy company. This transformation                1
                                              began in earnest in 1902 when three young cousins –
                                              Coleman, Pierre and Alfred du Pont – purchased the
                                              company rather than see it sold to a competitor. Their
                                              extraordinary energy and vision led to a modernization of
                                              company management, the construction of research
                                              laboratories, and diversification into new products like
                                              paints, plastics and dyes.
In the late 1920s, DuPont deepened its commitment      nutrition markets. DuPont biotechnology is making inroads
    to scientific discovery as the key to future success.        in other areas such as the new fibers from renewable
    Through a new commitment to fundamental research,            resources like corn.
    combined with existing strengths in development and               DuPont science is also being applied to electronics.
    engineering, DuPont led the materials revolution through-    The company has for many years been one of the world’s
    out the rest of the 20th century. The company marketed       top suppliers of electronic materials, and DuPont scientists
    better auto paints; moisture-proof cellophane; neoprene      are on the leading edge of flat-panel display technology.
    synthetic rubber; safety glass; improved movie and X-ray          Meanwhile the company maintains its leadership in
    films; Teflon® fluoropolymers; and an array of synthetic     materials science with DuPont products continuing to
    fibers that evolved from the landmark discovery of nylon.    change the clothes we wear, the vehicles we drive, the
    DuPont also served America well in two world wars, but       structure and décor of our homes and offices, and
    prospered by providing solutions to its customers’ prob-     virtually every facet of our lives where materials provide
    lems and meeting a growing array of consumer needs.          comfort, aesthetics, performance and safety.
          Starting in the 1970s, DuPont turned its attention          DuPont is also drawing on its heritage and
    toward saving energy and renewing resources. For             technology to protect what matters most. One of the
    example, tough DuPont plastics resulted in lighter, more     world’s safest industrial companies, DuPont offers its
    fuel-efficient cars, and nylon air bags improved their       knowledge of safety and security to other companies
    safety. DuPont materials helped miniaturize electronic       and organizations.
    circuits for use in cell phones, personal computers and           What sets DuPont apart is not only its longevity, but
    the space shuttle. Pioneering work in new aerosols and       its unique ability to adapt to changing circumstances.
    refrigerants helped ease the impact on the ozone layer in    Because of its foundation in science – with an emphasis
    the earth’s upper atmosphere. Police officers are safer,     on discovery – change is very much a part of the DuPont
    too – over 2,600 owe their lives to bullet-resistant vests   culture. The ability to transform and reinvent itself several
    made of Kevlar ® brand fiber.                                times during its history is a central reason why DuPont
                                                                 continues to be a competitive global company two
    OUR THIRD CENTURY
                                                                 centuries after its founding.
    Today, DuPont aims to protect the environment while
                                                                      Transforming an enterprise as immense and com-
    continuing to develop materials and services that will
                                                                 plex as DuPont is no easy task. The key to the company’s
    help make modern life safer, easier and more productive
                                                                 success during these major transformations has been its
    than ever before. Now in its third century of continuous
                                                                 steadfast adherence to its core values of safety, health,
    operation under the same name and with a clear evolu-
                                                                 environmental stewardship, ethical behavior, and
    tion of products and businesses, DuPont is in the midst of
                                                                 respectful treatment of people. With this successful
    yet another transformation.
                                                                 heritage, DuPont begins its third century as a global
         With the growing importance of biological sciences
                                                                 industrial leader committed to putting science to work to
    and as the largest seed company in the world, today’s
2                                                                help make the world a better place in which to live.
    DuPont aims to put science to work in global food and
T
The DuPont Experimental Station marks its 100th anniver-
sary in 2003. One of the first industrial research laborato-
ries in the United States, the 150-acre campus-style site at
Wilmington, Delaware, serves as the company’s primary
research and development facility. Virtually every major
DuPont product since 1903 was discovered here –
including neoprene, nylon, Lycra ® stretch fiber, Tyvek ®
nonwovens, Corian ® solid surfaces, Suva ® refrigerants,
and Kevlar ®and Nomex ® brand fibers.
    Nearly 2,000 scientists and researchers – 600 with
Ph.D.s – continue to build on the DuPont legacy of sci-
ence-based solutions for global markets. Research and
development underway includes nanotechnology, display
technologies, fuel cells for energy, and bio-materials
produced from renewable resources like corn. These
developments are directed at foods that help prevent
disease, “smart” materials that adjust performance to
changing conditions, microorganisms that produce bio-
degradable products, and innovative materials that
enhance personal protection.
    2003 also marks the centennial of DuPont Engineering.      Upper left: One of the earliest laboratories
                                                               of the Experimental Station was “state of
The engineering staff set up in the High Explosives            the art” a century ago.
Department in early 1903 eventually grew into the DuPont       Middle: The Experimental Station today
                                                               rises above the Brandywine River at
Engineering Department. DuPont Engineering developed
                                                               Wilmington, Delaware, a short distance
much of the fundamental science underlying the modern          downstream from the company’s first
                                                               laboratory on the grounds of the original
disciplines of chemical engineering and process technology.    duPont estate. Virtually every major
    DuPont Engineering’s list of achievements in times of      DuPont product of the last 100 years was
                                                               discovered at the Experimental Station.
great need includes vital and historic contributions to the
                                                               Right: The DuPont Engineering Company,
                                                                                                              3
Manhattan Project. In times of peace and prosperity,           circa 1920, was a subsidiary that built
                                                               schools, hospitals, roads and bridges.
DuPont Engineering helped grow the global economy by
                                                               Below: A DuPont Project Engineering
enabling the rapid commercialization of new and innova-        Center team conducts a final model review
                                                               for a new plant.
tive products like nylon and Teflon ® fluoropolymers.
DuPont engineers today are deployed to support the
company’s growth platforms through the application of
engineering know-how and expertise to emerging and
existing products and processes.
CHAIRMAN’S MESSAGE




    2002 was an exciting and eventful year for DuPont. We         of many leading companies in other industries where we
    celebrated our 200th anniversary in a way that reflected      compete. Our cash flow performance was also strong.
    the intense pride we have in our rich heritage. At the        We had sufficient funding for several acquisitions with
    same time, we took bold steps to position our company         the largest being about $360 million, while maintaining an
    for the future and to use our strengths to create opportu-    exceptionally strong balance sheet.
    nities for growth.                                                  We could not have accomplished this without the
          In light of the U.S. Securities and Exchange            creativity and dedication of DuPont employees around
    Commission’s planned accelerated timeline for year-end        the world. They remain our greatest strength. We
    reporting, we are introducing a supplemental Annual           acknowledged them in a special way during our 200th
    Review that provides a broad overview of the company,         anniversary year by awarding every employee 200 stock
    including some of the key activities that occurred during     options – the fourth time in our history that we granted
    the year. The company’s SEC Form 10-K provides man-           every employee a set number of options. Each time we
    agement’s discussion and analysis of financial condition      have seen increased attention on the part of employees
    and results of operations, together with the audited          to our stock’s performance and to shareholder concerns.
    financial statements.                                               Contributing to our 2002 financial performance were
          During 2002 our financial performance improved          working capital and cost improvements. Days of
    significantly, considering that 2001 included a substantial   inventory on hand improved by four days, while days of
    gain from the sale of our pharmaceuticals business.           sales receivable declined by four days. Combined, these
    Many of our most important markets were emerging from         two improvements represent a working capital savings of
    one of the most difficult years of the past two decades.      $500 million. Our costs remained under good control with
    There still remains considerable uncertainty about the        total cost productivity up about 3 percent.
    economic recovery and unfolding global events, so we                The most important action of 2002 was the realign-
    are being very deliberate going into 2003 until the eco-      ment of our businesses. We formed five growth
    nomic direction is clear.                                     platforms and made the difficult decision to separate
          Yet in this environment DuPont people and businesses    DuPont Textiles & Interiors (DTI) from the company. We
    performed admirably in 2002. We demonstrated noteworthy       believe that separate from DuPont, the DTI businesses
    earnings growth and outperformed our competition.             will have the most flexibility to respond to the competi-
    Earnings recovered dramatically from the prior year’s low     tive realities of their markets. Overall, our five platforms
    levels, putting aside the significant gain in 2001 from the   have already begun to show their potential as a powerful
    sale of DuPont Pharmaceuticals. This performance              mechanism for identifying and capturing opportunities in
    places us at the top of the chemical industry and ahead       key growth markets.




4                                                                                       Members of the Office of the Chief
                                                                                        Executive, from left: John Hodgson,
                                                                                        Executive Vice President; Stacey Mobley,
                                                                                        Senior Vice President, Chief
                                                                                        Administrative Officer & General
                                                                                        Counsel; Dennis Zeleny, Senior Vice
                                                                                        President, Human Resources;
                                                                                        Gary Pfeiffer, Senior Vice President &
                                                                                        Chief Financial Officer; Tom Connelly,
                                                                                        Senior Vice President & Chief Science &
                                                                                        Technology Officer; Richard Goodmanson,
                                                                                        Executive Vice President & Chief Operating
                                                                                        Officer; Chad Holliday, Chairman & Chief
                                                                                        Executive Officer.
Six Sigma continues to be the “way we work”
at DuPont. Our 1,200 Black Belts and 250 Master Black
Belts remain the foundation of our effort, but the use of
Six Sigma tools, methodologies, and thinking is now wide-
spread. Over 10,000 DuPont people have been through
Green Belt training, including our corporate officers. Over
11,000 projects are now in our database.
      Our newest trend in Six Sigma is the increasing
number of revenue growth projects. Over 1,300 such
projects are underway and, in 2003, we will more than
double that number. One project is expected to add more
than half a million dollars of fire extinguishant sales in our
Asia Pacific Region. Also, a DuPont sales representative
gained as much as $6.5 million in new business through
a project that saved an Elvanol® resin customer more than
$1 million a year. Another project resulted in nearly a
million dollars in pretax operating income by increasing
                                                                 Chairman & CEO Chad Holliday, surrounded by DuPont employees
waterborne paint production capacity at our Mt. Clemens,         from around the world, rings the closing bell at the New York Stock
Michigan, plant.                                                 Exchange on the 200th anniversary of DuPont, July 19, 2002.
      Meanwhile our commitment to science is as strong
as ever, and it is the engine for sustainable growth in our      people’s lives even as we reduce the environmental
third century. We are building on our reputation for             footprint of our operations and our products.
innovation by putting science to work for our customers                We accomplished all that we did in 2002 while living
around the world. In 2002 we launched new coatings               our core values of safety, health and environmental
technology at the DaimlerChrysler plant in Newark,               stewardship; ethical business practices; and respect for
Delaware, and introduced our new Organic Light Emitting          people. After 200 years, these values give a unique
Diode (OLED) flat panel displays, which will be manufac-         texture to life in our company, which anyone who has
tured in Taiwan. We made advances in areas such as               worked here or who is close to us recognizes as distinctly
fuel cells, which will be used to power motor scooters,          DuPont. These values remain the trusted guides and
and in safety glass and crop protection products. We             uncompromising standards for how all of us at DuPont
continue to solve our customers’ problems and improve            will conduct our business around the world.




                                                                                                                                       5

                                                                 Chad Holliday
                                                                 Chairman & CEO


                                                                 March 1, 2003
SUSTAINABLE GROWTH STRATEGIES




                                                  Research Associate Sharon Haynie uses       microorganisms tailored for large-scale
                                                  her expertise in visualizing, quantifying   chemical synthesis. Her work plays an
                                                  and manipulating proteins and peptides      important role in the corporate strategy
                                                  to help her colleagues in the DuPont        to develop “greener” processes by
                                                  Biochemical Science and Engineering         integrating biology with the company’s
                                                  Group understand the performance of         traditional strength in chemistry.



    DuPont enters its third century well positioned to com-            unrivaled in its ability to meet market needs.
    pete in a rapidly changing world. Building on its core as               For example, the company is bringing together
    a science company, DuPont will achieve sustainable                 diverse technologies, developed both internally and
    revenue and earnings growth through three strategic                acquired from others, to meet market demand for
6
    pathways: integrated science, knowledge intensity and              brighter, clearer, more flexible and more energy-efficient
    productivity improvement.                                          displays on electronic and communication devices.
    INTEGRATED SCIENCE                                                 KNOWLEDGE INTENSITY
         Integrated science is the innovation driver for                   Knowledge intensity is the structural driver of
    sustainable growth. DuPont is augmenting its traditional           sustainable growth. Today, more than ever before,
    technology platforms of chemistry, physics and                     DuPont uses its technical expertise and market knowl-
    engineering with biology, and is accessing the technology          edge to capture added value from its products, services
    of others through alliances, licensing and acquisitions.           and brands.
    With this integrated technological expertise, DuPont is                For instance, working with customers in the textile
Don Johnson, Group Vice President –                            John Himes, Senior Vice President –
DuPont Operations & Services (left), with                      DuPont Corporate Strategy (center),
Charles Simmons, a Six Sigma Master                            Matt Trerotola, Director – Corporate
Black Belt who is working on transactional                     Plans and Nancy Tunstall, Executive
excellence in supply chain management                          Assistant, review a presentation on
for DuPont Engineering Polymers.                               corporate direction.



industry, DuPont used its expertise in ink jet printing        reductions and capacity improvements, to the
technology to develop Artistri TM, a system that not only      “demand” side where improvements have a direct
provides the ink, but also the software and equipment for      impact on sales growth.
digital printing on textiles.                                       By working closely with customers, DuPont can
                                                                                                                            7
     In another example, DuPont is building on its long        better understand where to improve quality or service,
history of safe handling of sulfuric acid to help refineries   how to develop new markets, and how to be more
regenerate spent acid safely and in an environmentally         effective in such areas as branding and selling. Further,
sound manner.                                                  the company is using its experience with Six Sigma to
                                                               help customers improve their own operations.
PRODUCTIVITY IMPROVEMENT
     Productivity improvement is the operational                    As part of its transformation to a sustainable growth
driver of sustainable growth. Driven by a well-devel-          company, DuPont in 2002 aligned its businesses into sev-
oped Six Sigma process, productivity improvements              eral market-and-technology-focused growth platforms
are shifting from the “supply” side, such as cost              and created DuPont Textiles & Interiors.
DUPONT AGRICULTURE & NUTRITION




    Senior Research Scientist Zuo-yu                                                        A dealer for Pioneer Sementes, Ltda.,
    Zhao is working at Pioneer Hi-Bred                                                      checks the quality of soybeans
    International’s research center in                                                      during the 2002 harvest in Brazil, a
    Iowa to develop new methods for                                                         leading world producer of soybeans.
    transformation of maize and nutrition
    improvement of sorghum grains.



                            Strategic Direction: Leverage DuPont strengths in               European corn borer. Business growth will come from
                            biotechnology and its knowledge of the food value chain         providing seeds with greater yields, through continuing
                            to increase the quality, quantity and safety of the global      close relationships with growers, and by entering new
                            food supply.                                                    markets. For instance, Pioneer recently formed a joint ven-
8
                                                                                            ture in China to produce top-performing seed corn.
                            Core Markets: Production Agriculture; Food Processing.
                                                                                                  The DuPont global crop protection business builds
                                 DuPont is unique in its ability to offer a full range of   on decades of experience helping growers protect
                            science that improves the quality, quantity and safety of       against disease, insects and weeds to improve yields of
                            the world’s food supply.                                        all major crops. Recent examples are AvauntTM and
                                 Pioneer Hi-Bred International is the world’s leading       Steward® insecticides, which use a new mode of action
                            seed company with more than 200 hybrids that help grow-         to control pests on cotton, fruits and vegetables.
                            ers get the maximum yield. Pioneer continues to develop               DuPont works closely with food companies to
                            hybrids, such as an improved corn seed that resists the         develop healthier and great-tasting products for
2002 NET SALES – $4.5 billion



                                                                 “I’VE WON THE NATIONAL
                                                                 YIELD CONTEST THE LAST
                                                                 SIX YEARS IN A ROW WITH
                                                                 PIONEER ® BRAND CORN
                                                                 HYBRIDS. YOU’VE GOT TO
                                                                 START WITH THE BEST
                                                                 GENETICS TO GET THE BEST
                                                                 YIELDS AND THAT’S THE
                                                                 DECISION THAT’S PAID OFF
                                                                 FOR ME.”
                                                                 FRANCIS CHILDS
                                                                 WORLD RECORD CORN GROWER
                                                                 MANCHESTER, IOWA




                                                                                         Top: The DuPont Qualicon BAX®
One year after its introduction,              Howard Minigh, Group Vice                                                        Bottom: DuPontTM AvauntTM insecticide
8th ContinentTM soymilk, a joint              President – DuPont Agriculture &           detection system contributes to       helps cotton farmers in West Africa
venture between DuPont and                    Nutrition (left) with Francis Childs, a    food safety by identifying bacteria   defeat pests and boost yields, yet has
General Mills, is number two in               Manchester, Iowa, farmer who set a         and pathogens with fast results and   a low impact on the environment.
its market in the United States.              world record for dry land corn             better than 99 percent accuracy.      The region is the world’s third largest
                                              production with Pioneer seed.                                                    exporter of cotton fiber.



consumers. The company has a joint venture with                             of services and products to farmers.
General Mills to develop and market 8th Continent TM                              DuPont Qualicon is a leader in providing fully auto-
soymilk. In its first year, 8th ContinentTM, which includes                 mated, genetics-based technology to identify bacteria
SolaeTM soy protein from DuPont Protein Technologies,                       and pathogens with better than 99 percent accuracy and
                                                                                                                                                                         9
ranked number two in soymilk sales.                                         fast results. The U.S. Department of Agriculture’s Food
      DuPont and Bunge Limited announced plans in                           Safety Inspection Service adopted Qualicon’s BAX®
January 2003 to form an alliance to significantly grow                      detection system as the standard for identifying Listeria
their agriculture and nutrition businesses. The alliance                    monocytogenes in food and food-processing equipment.
will include a joint venture for global production and                            Research drives growth in many ways: biotechnology
distribution of specialty food ingredients, beginning with                  to improve seeds; new modes of action for treating crop
soy proteins and lecithins; a biotechnology agreement to                    pests; new opportunities for incorporating SolaeTM in
develop and commercialize soybeans with improved                            foods and beverages; and broadening applications for the
quality traits; and an alliance to develop a broader offering               BAX® detection system.
DUPONT COATINGS & COLOR TECHNOLOGIES
                                                                                           “NEWARK ASSEMBLY IS
                                                                                           THE FIRST PLANT IN THE
                                                                                           WORLD TO USE THE
                                                                                           BREAKTHROUGH
                                                                                           TECHNOLOGY FOR
                                                                                           CLEARCOAT PAINT
                                                                                           DEVELOPED BY DUPONT.”
                                                                                           JIM WOLFE
                                                                                           NEWARK, DELAWARE
                                                                                           A S S E M B LY P L A N T M A N A G E R
                                                                                           DAIMLERCHRYSLER




     Top: DuPontTM SupraShieldTM           Bottom: DuPont is a global leader            Automobile owners in the U.K. and           DuPont Research Fellow Sheau-Hwa Ma,
     automotive clearcoat finish           in color technology and coatings             other countries are able to restore         an expert in polymer synthesis and
     resists scratches and mars with-      for a variety of applications.               their damaged vehicles using                polymer architecture, created a new
                                                                                                                                    color tint line, DuPontTM Imron® PowerTint,
     out sacrificing other important                                                    DuPont refinish paints.
                                                                                                                                    to make a new topcoat, DuPontTM
     appearance attributes.
                                                                                                                                    Imron® Elite polyurethane, for trucks.



                            Strategic Direction: Develop and provide ingredients,              paint technology to develop and market coatings, ingredi-
                            inks, coatings and color technologies that protect, deco-          ents, systems and technologies that meet industrial and
                            rate and add functionality to a wide variety of surfaces           consumer demands for performance while protecting
                            and substrates.                                                    the environment.
10
                                                                                                    One example is DuPont “SuperSolids” technology
                            Core Markets: Automotive; Collision Repair; Paper;
                                                                                               which has helped DaimlerChrysler reduce clearcoat air
                            Industrial Coatings; Digital Printing; Architectural
                                                                                               emissions by 25 percent at its Dodge Durango assembly
                            Coatings; Plastics.
                                                                                               plant in Newark, Delaware. This product is based on a
                                 DuPont is the global leader in providing high                 polymer engineering breakthrough that has resulted in
                            technical content coatings, high-quality titanium dioxide          a class of coatings that reduce solvents and increase
                            (TiO2) products and ink jet systems for digital printing.          the solids content of coatings. Another example is
                                 The company uses its long history as an innovator in          SupraShieldTM, a premium automotive clearcoat finish
2002 NET SALES – $5.0 billion




Ed Donnelly, Group Vice President –                           DaimlerChrysler reduced clearcoat air
DuPont Coatings & Color Technologies                          emissions by 25 percent at its Dodge
(left), with Warren Thompson and                              Durango assembly plant in Newark,
Cari McConville at the DuPont Front Royal                     Delaware, using “SuperSolids”
Plant in Virginia.                                            technology developed by DuPont.




that resists scratches without sacrificing other important    in major growth markets, particularly Asia Pacific.
appearance attributes.                                             The company also has a strong position in digital
     DuPont is the leading producer of refinishes for         inks and has developed a technology called ArtistriTM
vehicles involved in collisions, and is a major supplier of   used for printing on textiles. DuPont is broadening its
                                                                                                                            11
industrial paints used to protect everything from bridges     involvement in this industry with technology for commer-
in the United States to windmills in Europe. These            cial and photographic applications.
businesses will help drive growth in this platform.                Driving growth for the Coatings & Color Technologies
     Complementing the DuPont finishes business is TiO2,      platform are expansion in Asia Pacific; further development
a white pigment that imparts opacity, color, ultraviolet      of new coatings systems, such as DuPont TM HyperCureTM
resistance and aesthetic benefits to paint, paper, plastics   for collision repair; and new grades of TiO2 that can be
and a host of other products. DuPont is the leading world     used in long-wearing applications, such as super-durable
producer of titanium dioxide and is expanding its presence    automotive paint and laminate flooring.
DUPONT ELECTRONIC & COMMUNICATION TECHNOLOGIES




 Top: Solar panels, such as those          Bottom: Diane Gulyas, Group Vice     Temperature Co-Fired Ceramic                   Above: DuPont is working with Asia
 shown here in Hamborn, Germany,           President – DuPont Electronic &      Applications Support Laboratory in             Pacific Fuel Cell Technologies to com-
 are made by Isofoton of Spain, and        Communication Technologies           Research Triangle Park, North                  mercialize proton exchange membrane
 incorporate DuPont advanced               (far right), with employees at the   Carolina. From left: Mike Barker,              fuel cells for the Taiwan electric scooter
 materials for the fabrication of          DuPontTM Green TapeTM Low            Haixin Wang and Tommeka Marley.                market to help reduce dependence on
 photovoltaic modules.                                                                                                         oil and improve air quality.



                         Strategic Direction: Use DuPont strong materials and                    materials play an important role in all areas of electronics
                         technology base to help advance the speed and reduce the                – consumer, military, industrial, automotive, medical,
                         size and cost of electronic and communication devices.                  computers and communications.
                                                                                                      The company broadened its presence in the elec-
12                       Core Markets: Semiconductors; Printed Circuit Boards and
                                                                                                 tronics industry during 2002 when it acquired ChemFirst,
                         Components; Communications; Displays and Imaging.
                                                                                                 a leader in providing materials that enable semiconduc-
                              DuPont science and innovation in electronic materi-                tor manufacturers to make advanced integrated circuits.
                         als and components are major drivers of growth, both for                ChemFirst will help DuPont speed the development of a
                         DuPont and for its value chain partners. Its materials and              new generation of photoresist polymers, which is key
                         services help the global electronics and communications                 to lowering costs and increasing the performance of
                         industries make devices that are smaller, faster and more               integrated circuits and electronic equipment.
                         portable and powerful than ever before. DuPont electronic                    Businesses in this platform bring expertise in fluorine
2002 NET SALES – $2.5 billion




                    “ASIA PACIFIC FUEL CELL
                    TECHNOLOGIES HAS SPENT
                    THE PAST SEVERAL YEARS
                    REFINING ITS TECHNOLOGY
                    TO BE ABLE TO DELIVER A
                    LOW-COST, MARKET-DRIVEN
                    PRODUCT FOR COMMERCIAL
                    USE. HIGH-QUALITY
                    PRODUCTS, MARKET
                    PRESENCE AND DUPONT
                    BRAND RECOGNITION WILL
                    COMPLEMENT THAT
                    OFFERING TO HELP DRIVE
                    COMMERCIALIZATION IN
                    THE SCOOTER MARKET.”
                    J E F F E R S O N YA N G
                    CHAIRMAN
                    ASIA PACIFIC FUEL CELL
                    TECHNOLOGIES




                 Top: The DuPontTM Cyrel ® FAST         DuPont Physicist Ian Parker holds                      DuPont is developing a new
                                                        four polymer-based light-emitting                      generation of displays – called
                 system uses thermal processing to
                                                        displays, each generating a differ-                    Organic Light Emitting Diodes
                 make flexographic printing plates,
                                                        ent color. Polymer-based displays                      (OLEDs) – for electronic equipment.
                 eliminating the harsh solvents used
                                                        will dramatically improve visuals on
                 to create the raised area that makes
                                                        hand-held devices.
                 an inked impression on paper.



technology to markets through DuPontTM Teflon ® and                  displays produced on plastic, reducing production costs
other materials used in high-purity fluid handling, printed          and fitting new designs.
circuit board films and laminates, and through electronic                  DuPont electronic products also help meet needs for
gases used in semiconductor chip fabrication.                        flexibility and performance in rapidly growing automotive
                                                                                                                                                     13
     DuPont is at the leading edge in developing a new               applications. Examples include materials for mirror and
generation of displays for electronic equipment called               seat heating, anti-lock brake systems and traction control,
Organic Light Emitting Diodes (OLEDs). These displays                and air bag sensors.
eliminate the need for a backlight and offer improved                      DuPont Electronic & Communication Technologies sup-
screen performance with bright, vivid colors and wide-               ports the company’s sustainable growth mission. Examples
view angles in a very thin form. First-generation OLED               include proton exchange membrane fuel cells and advanced
displays will be integrated into hand-held devices and               materials for photovoltaics, both of which will help
industrial applications. Future generations will feature             reduce dependence on oil and improve overall air quality.
DUPONT PERFORMANCE MATERIALS




                                                                   DuPontTM SentryGlas® Plus interlayer
     Craig Naylor, Group Vice President –
     DuPont Performance Materials (center),                        helps protect the Broward Center
     in Japan with Yasuhiro Ohguro (left) and                      for the Performing Arts in Florida
     Yosuke Fukada of DuPont Engineering                           against damage from hurricanes.
     Polymers, DuPont K.K.




     Strategic Direction: Use of DuPont expertise in materials     every vehicle system. Applications include engine and
     science to provide high performance polymer materials, sys-   chassis components; electrical insulation, connectors
     tems and solutions for demanding applications worldwide.      and electronic component housings; seat belt mecha-
                                                                   nisms and air bag doors; and exterior body parts.
14   Core Markets: Automotive; Electrical and Electronics;
                                                                         Development is underway to enable the future pro-
     Packaging; Construction.
                                                                   duction of safer, more fuel-efficient and lower emission
          As the world’s premier materials science company,        vehicles. One example is work with a leading academic
     DuPont is at the forefront of developing and providing        consortium to develop 42-volt electronic technology that
     high-value products that are lighter, stronger, safer and     will make it possible to replace nearly all of today’s
     more functional than the materials they replace.              inefficient automotive mechanical and hydraulic systems.
          In the automotive industry, DuPont supplies engi-              Flexible resins, such as DuPontTM Surlyn®, help
     neering and high-performance polymers for virtually           food manufacturers maintain the integrity of their
2002 NET SALES – $4.9 billion



                        “WE HAVE WORKED
                        CLOSELY WITH DUPONT
                        FOR 50 YEARS TO BE ON
                        THE CUTTING EDGE OF
                        NEW PRODUCTS AND
                        SERVICES FOR OUR
                        CUSTOMERS IN THE
                        GLOBAL AUTOMOTIVE
                        INDUSTRY. WE HAVE BEEN
                        RECOGNIZED BY
                        CUSTOMERS FOR OUR
                        QUALITY, TECHNOLOGY
                        AND SERVICE, AND WE
                        CREDIT MUCH OF THAT
                        SUCCESS TO OUR RELA-
                        TIONSHIP WITH DUPONT.”
                        MIKE KATERMAN
                        PRESIDENT AND CEO
                        MAGEE RIETER AUTOMOTIVE
                        SYSTEMS




DuPont Mechanical Engineer Anand       Consumers in Europe use water-                   Working together, Ford, Siemens        system reduces hydrocarbon
Jagota and his colleagues conducted    soluble pouches produced with                    and DuPont developed the first         emissions by allowing a percentage
                                       DuPontTM Elvanol® resin to dispense
tests to catalog how polymers can                                                       thermoplastic air intake manifold in   of the exhaust gas to be returned to
strengthen glass. DuPontTM             a pre-measured amount of deter-                  Europe that incorporates an            the manifold. The new manifold of
SentryGlas® Plus interlayer was one                                                                                            DuPontTM Zytel® nylon resin is
                                       gent into their laundry.                         exhaust gas recirculation system
result of their efforts.                                                                using lost-core molding. The           featured on select engines.



packages. Packaging resins and films also meet the                      innovative technology offers improved distance with
needs of an “on-the-go” population for more conven-                     superior feel and control – increasing resin use in cores,
ient, recyclable or disposable containers. A new                        mantles and covers.
insulated beverage label wrap called DuPontTM Cool 2GoTM,                    Recognizing the growing need to keep offices,                                            15
which keeps beverages cold for up to twice as long as                   public buildings and homes safe, DuPont developed a
drinks without the wrap, is being tested in the United                  new glass interlayer, SentryGlas® Plus, which protects
States. In Europe, water-soluble pouches produced                       against blasts and storms. This technology is finding
with Elvanol ® resin are used to release pre-measured                   growing use in government and office buildings where
amounts of detergent into cold water, making                            security is important.
washday easier.                                                              A strong development pipeline and expansion in
     The company also developed a new polymer for                       emerging markets will help drive further growth of busi-
use in golf balls. Called DuPontTM HPF polymer, this                    nesses in DuPont Performance Materials.
DUPONT SAFETY & PROTECTION




                                                                                         “HELP IN ELIMINATING
                                                                                         AT-RISK BEHAVIORS, AND
                                                                                         SETTING IN PLACE
                                                                                         PROVEN SAFETY
                                                                                         SYSTEMS, IS WHERE
                                                                                         DUPONT HAS BEEN SO
                                                                                         EFFECTIVE.”

                                                                                         NILE GLASEBROOK
                                                                                         SAFETY SERVICES
                                                                                         VICE PRESIDENT
                                                                                         YELLOW TRANSPORTATION




                                               Bottom: Easy-to-clean DuPontTM Corian®
     Top: Contractors in the U.K. and                                                                                      DuPont Safety Resources was hired
     elsewhere use DuPontTM Tyvek®             surfaces help protect children, such                                        to enhance the safety culture of
     HomeWrap® to reduce moisture              as those enjoying lunch at the                                              Yellow Transportation, one of North
     and to prevent mold and mildew            McDonald’s restaurant in New York                                           America’s largest movers. The
     in homes and other buildings.             City’s Times Square, from germs.                                            result was fewer lost-time injuries
                                                                                                                           and significant cost savings.



                            Strategic Direction: Integrate DuPont technology,                Through its Safety & Protection platform, DuPont
                            know-how and market presence to protect people,             provides businesses and governments with a broad set of
                            property, operations and the environment.                   solutions ranging from protective clothing to consulting
                                                                                        services that reduce on-the-job injuries and deaths.
16                          Core Markets: Construction; Personal Protection –
                                                                                             The company is using its leadership in materials
                            Industrial and First Responders; Medical; Process
                                                                                        sciences to develop protective clothing that is even safer
                            Industries; Safety and Operations Services.
                                                                                        and more comfortable for people working with hazardous
                                 For 200 years, commitment to safety and health has     materials or in dangerous environments.
                            been the company’s most fundamental core value, and              It also is developing integrated systems, like
                            today DuPont is recognized as one of the world’s safest     DuPontTM StormRoom with Kevlar ®, designed to protect
                            industrial companies. Now, more than ever, DuPont is        people inside their homes or workplaces from flying
                            using its experience, knowledge, technology and products    debris during tornadoes.
                            to help people around the world address their needs for          DuPontTM Nomex® brand fiber, trusted by firefighters
                            safety, security and protection.                            for more than 20 years, will soon be available for consumer
2002 NET SALES – $3.5 billion




                                Top: Long used to help protect the             Bottom: Ellen Kullman, Group Vice           Chemist Dana Hammer is part of a
                                police and military personnel from             President – DuPont Safety & Protection,     team that performs state-of-the-art
                                bullets, DuPontTM Kevlar ® brand fiber         with firefighters David Corbin and          testing to prove the versatility and
                                                                                                                           value of DuPontTM Corian® and
                                now protects police dogs as well.              Steven Crouch in Henrico, Virginia. Fire-
                                                                               fighters rely on DuPontTM Nomex® brand      DuPontTM Zodiaq® solid surfaces
                                                                               fiber to protect themselves.                compared to competitive products.



use to protect people and provide faster escape from fires.              responders clean and disinfect accident areas, as well
     The company’s safe operation of hazardous facilities                as in other critical applications.
for more than 200 years is now being used to help the                         DuPont serves consumers and the construction
U.S. Department of Defense to neutralize and dispose of                  industry with such products as Corian® and the new
                                                                                                                                                                  17
chemical weapons safely and, through its SafeReturnsTM                   Zodiaq ®, which provide attractive, easy-to-clean surfaces
consulting service, DuPont has helped clients make                       for medical facilities, offices, homes and public spaces.
improvements to their safety culture which are estimated                 Tyvek® HomeWrap ® helps reduce moisture and prevent
to have avoided 18,000 injuries and 50 deaths during the                 mold and mildew within well-designed and constructed
past three years.                                                        walls in homes and other buildings. Garments of Sontara®
     Other areas where DuPont is leveraging its science                  offer more comfort and protection for workers in health-
include integrating Kevlar ®, long recognized for its pro-               care and other industries.
tection against bullets, into commercial aircraft                             DuPont Safety & Protection is focused on develop-
cockpit doors to improve pilot and public security, and                  ing new products and services to protect people,
using DuPont chemicals like Oxone® to help emergency                     property, operations and the environment worldwide.
DUPONT TEXTILES & INTERIORS




                                             DuPontTM Stainmaster®carpet with
     Senior Research Scientist Jialin Sun                                               Top: DuPont and Santista Chile,       Bottom: The soft, comfortable fabric
                                             Tactesse® fiber is the first residential   a customer of DuPontTM Lycra®         of Dockers® Go KhakiTM pants is treated
     and her team in Kingston, Ontario,
                                                                                                                              with DuPontTM Teflon® fabric protector.
     Canada, used their knowledge of         carpet fiber to deliver a soft touch       stretch fiber, worked together at a
     nylon fiber to develop products and     with outstanding durability.               large department store in Santiago,   Many oil and water-based liquids,
     solutions for safer air bags,                                                      Chile, to promote the benefits of     such as orange juice, soda and milk,
                                                                                        Lycra® in jeans.
     including new side curtain air bags.                                                                                     bead up to minimize staining.



                            Strategic Direction: Build on DuPont technical              nized industrial brands. These brands reinforce market
                            innovation, market insights and global brands and           awareness and differentiation, and create consumer
                            trademarks in the integrated fibers business to help        pull-through demand for DTI and its customers. DTI
                            customers succeed in an increasingly competitive            combines brands with significant textile and soft floor
18
                            business environment.                                       covering know-how, fiber technologies, global manufac-
                                                                                        turing, research and distribution capabilities, leading
                            Core Markets: Apparel; Carpet, Interior and Industrial
                                                                                        intermediates positions and unequaled operational
                            Uses; and Nylon, Polyester and Elastane Intermediates,
                                                                                        scope and scale to compete in increasingly complex
                            and related Specialties.
                                                                                        global markets.
                                 DuPont Textiles & Interiors (DTI) is the world’s            DTI is growing its apparel products in rapidly
                            largest integrated fibers enterprise with manufacturing     developing markets, such as China, and creating new
                            or marketing presence in every major market and             applications for its key products. One recent development
                            region. The DTI brand portfolio includes powerful world-    is approval granted DuPont by the U.S. Federal Trade
                            wide consumer brands and a number of globally recog-        Commission for a new generic fiber subclass (elasterell-p)
2002 NET SALES – $6.3 billion



                                                                                                                                “STAINMASTER ®
                                                                                                                                CARPET HELPS
                                                                                                                                PREPARE OUR SALES
                                                                                                                                TEAM FOR THE
                                                                                                                                EDUCATED CONSUMER
                                                                                                                                BY EDUCATING US.
                                                                                                                                AN EDUCATED SALES
                                                                                                                                TEAM WILL CLOSE
                                                                                                                                MORE DEALS.”

                                                                                                                                PAT DRENNER
                                                                                                                                OWNER
                                                                                                                                DRENNER’S CARPET GALLERY
                                                                                                                                B A Y C I T Y, T E X A S




                                              Top: DuPontTM Lycra® combined with                                           Steve McCracken, Group Vice
A hiker wears a Sportsmaster jacket                                                     From left: George MacCormack,
of soft, durable DuPontTM Supplex®                                                                                         President – DuPont Textiles &
                                              leather enables design flexibility,       Group Vice President –
nylon treated with Teflon® to repel                                                                                        Interiors, at DTI offices in Delaware.
                                              and brings fashion and beauty             DuPont Textiles & Interiors;
water and stains, and carries an              to furniture.                             Richard Goodmanson, CEO of
Overland Equipment backpack of                                                          DuPont Textiles & Interiors; and
rugged DuPontTM Cordura® nylon.



                                                                        ing also will be factors influencing anticipated growth.
in recognition of the unique qualities of T-400, the latest
                                                                             The global intermediates market is expected to
innovation to be marketed under the Lycra® brand. In
                                                                        remain highly competitive. DTI will continue to empha-
another area, the business is seeing strong consumer
                                                                        size its low cost structure, global scale and advantaged
acceptance of the introduction of Teflon® fabric protector
                                                                                                                                                                    19
                                                                        technology. Specialty chemical niches are also being
as the “easy care” answer for clothes today.
                                                                        developed. For example, an enhanced version of
     DTI is applying its expertise to grow its presence in
                                                                        Corfree® M1TM used in lubricants, metal working fluids
the interior and industrial fibers markets, particularly with
                                                                        and corrosion inhibitors has improved active ingredients
Stainmaster® and Teflon® in the North American carpet
                                                                        and very low levels of undesirable nitrogen compounds
and home furnishings markets. Stainmaster® carpet with
                                                                        content. Diversification into several different end-uses
Tactesse® fiber is the first residential carpet fiber to
                                                                        including food-grade have exciting potential. And the
deliver a soft touch with outstanding durability. The
                                                                        company expects strong demand for Purified Terephthalic
company also is accelerating new product introductions,
                                                                        Acid in Asia while continuing to assess alternative
such as Lycra® to add stretch in upholstery. Auto builds
                                                                        strategies to optimize its polyester investments.
and side air bag penetration and U.S. government spend-
DUPONT IS A COMPANY BUILT ON VALUES




                                                                                                     Monds Island in the Delaware River
                                                                                                     estuary near Gibbstown, New
                                                                                                     Jersey, was once DuPont property.
                                                                                                     Donated to New Jersey Audubon
                                                                                                     Society in 1998 through the DuPont
                                                                                                     Land Legacy Program, it is today
                                                                                                     part of Twin Islands Sanctuary, a
                                                                                                     nesting site for Great Blue Herons
                                                                                                     and Bald Eagles. The skyline of
                                                                                                     Philadelphia is in the background.




     From the early 1800s, our founder’s business was charac-     does business. All of our operations around the world are
     terized by a great concern for the safety and well being     held to the same standards.
     of his employees even as they pursued a dangerous                 In 2002, DuPont enhanced its already world class
     occupation. He was one of the first American manufac-        safety record by improving year-over-year total employee
     turers to hire a physician to look after sick or injured     recordable illness and injury performance by 27 percent
     employees. He instituted overtime and night pay when         and reducing severe injuries to our employees by an
20
     these were rare in any firm. He even created a savings       even larger margin.
     plan in which the company paid interest to employee               In the environmental arena, we received external
     accounts. E. I. du Pont also was a man of high ethical       recognition in the form of The American Greenways
     standards. As a manufacturer in the young United States,     Award, jointly administered by The Conservation Fund
     he quickly established a reputation for honesty and fair     and The National Geographic Society. This award was
     dealing that distinguished him throughout his life.          presented to DuPont for our historic efforts in land
          Safety, health and the environment, ethical behavior,   conservation, including our Land Legacy Program, which
     and respect for people remain the values of DuPont to        since its inception in the early 1990s, has placed more
     this day. They are practiced everywhere the company          than 18,000 acres of land valued at $50 million into perma-
A new exhibit at Hagley Museum
DuPont Thailand’s Corn Farm          and corn cultivating supervision,                                                      DuPont India, in conjunction with
                                                                                      in Wilmington, Delaware, is called
projects aim to improve nutrition    while the teachers, students, parents                                                  Intel India, is continuing a series of
                                                                                      DuPont Science and Discovery.
and quality of life and strengthen   and villagers do the farming. The                                                      community workshops at a school
                                                                                      Funded by DuPont, the exhibit
the relationship between DuPont      income from corn yield has been used                                                   in New Delhi. This nutrition
                                                                                      features a “laboratory” for school
and local communities. DuPont        for school lunch programs, under-                                                      workshop was conducted for more
provides Pioneer ® corn seed,                                                         children to learn about synthetic
                                     writing vegetable planting, poultry                                                    than 50 students and teachers by
                                                                                      materials. Hagley Museum, on the
planting materials, farm inputs      farming for eggs and fish farming.                                                     Upasna Seth, a Delhi lecturer on
                                                                                      site of the first DuPont mills, has   food technology.
                                                                                      been described as the finest
                                                                                      industrial museum in the
                                                                                      United States.




nently protected status through donation or easement.                        fifth consecutive year, DuPont was named one of “The
DuPont was also selected as a component of the Dow                           Most Admired Companies in Brazil” by Carta Capital
Jones Sustainability World Indexes, the first index family                   magazine and the InterScience Institute. In the United
tracking the performance of sustainability-driven compa-                     States, DuPont was honored as one of the “100 Best
nies worldwide. Our concern for health was recognized                        Companies For Working Mothers” by Working Mother
by the achievement of DuPont Singapore which won the                         magazine, and one of “The 50 Best Companies for Latinas
                                                                                                                                                                     21
prestigious Singapore Health Gold Award.                                     to Work for in the United States” by LATINAStyle magazine.
     During 2002, the company’s concern for the people                             In the communities where we operate, DuPont works
of DuPont was recognized in numerous ways around the                         to promote social progress, economic success, and
globe. DuPont Mexico was named one of “The Best                              environmental excellence through the DuPont Community
Companies to Work for in Mexico” by Expansion maga-                          Fund. We actively encourage volunteerism among our
zine and the Great Place to Work Institute®. DuPont                          employees and annually honor the most outstanding
Korea was named one of the “Top 20 Great Workplaces”                         through the DuPont Volunteer Recognition Program.
in Korea in a survey conducted by the Korea Economic                               The values on which DuPont was built are the
Daily and the Eltech Trust Management Institute. For the                     values that sustain us today.
BOARD OF DIRECTORS



                                                                                                Charles O. Holliday, Jr.
                                                                                                Chairman of the Board and
                                                                                                Chief Executive Officer

                                                                                                Alain J. P. Belda
                                                                                                Chairman and Chief Executive
                                                                                                Officer, Alcoa Inc.
                                                                                                (producer of aluminum
                                                                                                and alumina)
     Charles O. Holliday, Jr.   Curtis J. Crawford
                                                                                                Richard H. Brown
                                                                                                Chairman of the Board and
                                                                                                Chief Executive Officer,
                                                                                                Electronic Data Systems
                                                                                                (global services company)

                                                                                                Curtis J. Crawford
                                                                                                President and Chief Executive
                                                                                                Officer, Onix Microsystems, Inc.
                                                                                                (developer and manufacturer
     Alain J. P. Belda          Louisa C. Duemling   Lois D. Juliber     H. Rodney Sharp, III   of optically transparent switches
                                                                                                for communications networks)

                                                                                                Louisa C. Duemling

                                                                                                Edward B. du Pont

                                                                                                Deborah C. Hopkins
                                                                                                Head, Corporate Strategy,
                                                                                                Citigroup, Inc.
                                                                                                (diversified financial
     Richard H. Brown           Edward B. du Pont    Göran Lindahl       Charles M. Vest
                                                                                                services company)

                                                                                                Lois D. Juliber
                                                                                                Chief Operating Officer,
                                                                                                Colgate-Palmolive Company
                                                                                                (consumer products company)

                                                                                                Göran Lindahl
                                                                                                Co-Chairman,
                                                                                                Nanomix, Inc.
                                                                                                (a developer of products
                                Deborah C. Hopkins   Masahisa Naitoh
                                                                                                made from nanoscale materials
                                                                                                and components)

                                                                                                Masahisa Naitoh
                                                                                                Executive Vice Chairman,
                                                                                                ITOCHU Corporation
                                                                                                (global trading company)

                                                                                                William K. Reilly
                                                                                                President and Chief
22                                                   William K. Reilly                          Executive Officer,
                                                                                                Aqua International Partners, LP
                                                                                                (finances water supply and
                                                                                                wastewater treatment in
                                                                                                developing countries)
                                                                                                Former Administrator, U.S.
                                                                                                Environmental Protection Agency

                                                                                                H. Rodney Sharp, III

                                                                                                Charles M. Vest
                                                                                                President,
                                                                                                Massachusetts Institute of
                                                                                                Technology
du pont 2002 Annual Review
du pont 2002 Annual Review
du pont 2002 Annual Review
du pont 2002 Annual Review

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du pont 2002 Annual Review

  • 1. DUPONT 2002 Review Putting Science to Work
  • 2. CORPORATE HIGHLIGHTS (Dollars in millions, except per share) Operating Results 2002 2001 Net Sales $ 24,006 $ 24,726 Income before Cumulative Effect of Changes in Accounting Principles $ 1,841 $ 4,328* Net Income (Loss) $ (1,103) $ 4,339* Depreciation and Amortization $ 1,515 $ 1,754 Capital Expenditures $ 1,416 $ 1,634 Research and Development Expense $ 1,264 $ 1,588 Financial Position, Year End Total Assets $ 34,621 $ 40,319 Total Debt $ 6,832 $ 6,814 Shareholders’ Equity $ 9,063 $ 14,452 Data Per Common Share Income before Cumulative Effect of Changes in Accounting Principles – Diluted $ 1.84 $ 4.15* Net Income (Loss) – Diluted $ (1.11) $ 4.16* Dividends $ 1.40 $ 1.40 Market Price Range $49.80 – 35.02 $49.88 – 32.64 Other Totals, Year End Shares of Common Stock Outstanding (millions) 994 1,002 Employees (thousands) 79 79 *Includes a $3,866 gain from sale of DuPont Pharmaceuticals ($3.74 diluted earnings per share). This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company’s strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects,” “anticipates,” “plans,” “intends,” “projects,” “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products.
  • 3. WE BEGIN OUR THIRD CENTURY... DuPont is a science company. We put science to work solving problems in ways that make people’s lives better, safer and easier. Our products and services are the result of our research and the knowledge we have gathered from more than two centuries of continuous operation around the world. We are a company with a conscience. Every day, our employees come to work committed to living out our core values of safety, health, and environmental steward- ship; ethical behavior; and respect for people. Customers and consumers everywhere know DuPont through daily contact with such trusted brands as Kevlar® brand fiber, Teflon® fluoropolymers, Tyvek® protective material and Corian® solid surfaces, as well as thousands of other products that touch every aspect of modern life. Our goal is to grow sustainably. To achieve it, we contin- ue to transform our company to stay competitive, reward our shareholders, and remain a vibrant and responsible global leader. OUR FIRST CENTURY DuPont began in 1802 as an explosives company. The company’s original product, black powder for guns and blasting, was a commodity essential to clearing land and building the infrastructure of frontier America. E. I. du Pont DuPont Chemical Engineer Susan had learned to make this material while working under Hennessey uses encapsulated bacteria the great French chemist Antoine Lavoisier. DuPont pow- cells as a biological catalyst to produce ders were quickly recognized as superior in quality to DuPontTM XolvoneTM, a readily biodegradable solvent for cleaning metals and electronic other powders manufactured in the young United States, parts such as computer circuit boards. and the company grew rapidly. By the end of the century, DuPont was also a leading manufacturer of high explo- sives and had begun its move into chemical products. OUR SECOND CENTURY In the 20th century DuPont became a global chemicals, materials and energy company. This transformation 1 began in earnest in 1902 when three young cousins – Coleman, Pierre and Alfred du Pont – purchased the company rather than see it sold to a competitor. Their extraordinary energy and vision led to a modernization of company management, the construction of research laboratories, and diversification into new products like paints, plastics and dyes.
  • 4. In the late 1920s, DuPont deepened its commitment nutrition markets. DuPont biotechnology is making inroads to scientific discovery as the key to future success. in other areas such as the new fibers from renewable Through a new commitment to fundamental research, resources like corn. combined with existing strengths in development and DuPont science is also being applied to electronics. engineering, DuPont led the materials revolution through- The company has for many years been one of the world’s out the rest of the 20th century. The company marketed top suppliers of electronic materials, and DuPont scientists better auto paints; moisture-proof cellophane; neoprene are on the leading edge of flat-panel display technology. synthetic rubber; safety glass; improved movie and X-ray Meanwhile the company maintains its leadership in films; Teflon® fluoropolymers; and an array of synthetic materials science with DuPont products continuing to fibers that evolved from the landmark discovery of nylon. change the clothes we wear, the vehicles we drive, the DuPont also served America well in two world wars, but structure and décor of our homes and offices, and prospered by providing solutions to its customers’ prob- virtually every facet of our lives where materials provide lems and meeting a growing array of consumer needs. comfort, aesthetics, performance and safety. Starting in the 1970s, DuPont turned its attention DuPont is also drawing on its heritage and toward saving energy and renewing resources. For technology to protect what matters most. One of the example, tough DuPont plastics resulted in lighter, more world’s safest industrial companies, DuPont offers its fuel-efficient cars, and nylon air bags improved their knowledge of safety and security to other companies safety. DuPont materials helped miniaturize electronic and organizations. circuits for use in cell phones, personal computers and What sets DuPont apart is not only its longevity, but the space shuttle. Pioneering work in new aerosols and its unique ability to adapt to changing circumstances. refrigerants helped ease the impact on the ozone layer in Because of its foundation in science – with an emphasis the earth’s upper atmosphere. Police officers are safer, on discovery – change is very much a part of the DuPont too – over 2,600 owe their lives to bullet-resistant vests culture. The ability to transform and reinvent itself several made of Kevlar ® brand fiber. times during its history is a central reason why DuPont continues to be a competitive global company two OUR THIRD CENTURY centuries after its founding. Today, DuPont aims to protect the environment while Transforming an enterprise as immense and com- continuing to develop materials and services that will plex as DuPont is no easy task. The key to the company’s help make modern life safer, easier and more productive success during these major transformations has been its than ever before. Now in its third century of continuous steadfast adherence to its core values of safety, health, operation under the same name and with a clear evolu- environmental stewardship, ethical behavior, and tion of products and businesses, DuPont is in the midst of respectful treatment of people. With this successful yet another transformation. heritage, DuPont begins its third century as a global With the growing importance of biological sciences industrial leader committed to putting science to work to and as the largest seed company in the world, today’s 2 help make the world a better place in which to live. DuPont aims to put science to work in global food and
  • 5. T The DuPont Experimental Station marks its 100th anniver- sary in 2003. One of the first industrial research laborato- ries in the United States, the 150-acre campus-style site at Wilmington, Delaware, serves as the company’s primary research and development facility. Virtually every major DuPont product since 1903 was discovered here – including neoprene, nylon, Lycra ® stretch fiber, Tyvek ® nonwovens, Corian ® solid surfaces, Suva ® refrigerants, and Kevlar ®and Nomex ® brand fibers. Nearly 2,000 scientists and researchers – 600 with Ph.D.s – continue to build on the DuPont legacy of sci- ence-based solutions for global markets. Research and development underway includes nanotechnology, display technologies, fuel cells for energy, and bio-materials produced from renewable resources like corn. These developments are directed at foods that help prevent disease, “smart” materials that adjust performance to changing conditions, microorganisms that produce bio- degradable products, and innovative materials that enhance personal protection. 2003 also marks the centennial of DuPont Engineering. Upper left: One of the earliest laboratories of the Experimental Station was “state of The engineering staff set up in the High Explosives the art” a century ago. Department in early 1903 eventually grew into the DuPont Middle: The Experimental Station today rises above the Brandywine River at Engineering Department. DuPont Engineering developed Wilmington, Delaware, a short distance much of the fundamental science underlying the modern downstream from the company’s first laboratory on the grounds of the original disciplines of chemical engineering and process technology. duPont estate. Virtually every major DuPont Engineering’s list of achievements in times of DuPont product of the last 100 years was discovered at the Experimental Station. great need includes vital and historic contributions to the Right: The DuPont Engineering Company, 3 Manhattan Project. In times of peace and prosperity, circa 1920, was a subsidiary that built schools, hospitals, roads and bridges. DuPont Engineering helped grow the global economy by Below: A DuPont Project Engineering enabling the rapid commercialization of new and innova- Center team conducts a final model review for a new plant. tive products like nylon and Teflon ® fluoropolymers. DuPont engineers today are deployed to support the company’s growth platforms through the application of engineering know-how and expertise to emerging and existing products and processes.
  • 6. CHAIRMAN’S MESSAGE 2002 was an exciting and eventful year for DuPont. We of many leading companies in other industries where we celebrated our 200th anniversary in a way that reflected compete. Our cash flow performance was also strong. the intense pride we have in our rich heritage. At the We had sufficient funding for several acquisitions with same time, we took bold steps to position our company the largest being about $360 million, while maintaining an for the future and to use our strengths to create opportu- exceptionally strong balance sheet. nities for growth. We could not have accomplished this without the In light of the U.S. Securities and Exchange creativity and dedication of DuPont employees around Commission’s planned accelerated timeline for year-end the world. They remain our greatest strength. We reporting, we are introducing a supplemental Annual acknowledged them in a special way during our 200th Review that provides a broad overview of the company, anniversary year by awarding every employee 200 stock including some of the key activities that occurred during options – the fourth time in our history that we granted the year. The company’s SEC Form 10-K provides man- every employee a set number of options. Each time we agement’s discussion and analysis of financial condition have seen increased attention on the part of employees and results of operations, together with the audited to our stock’s performance and to shareholder concerns. financial statements. Contributing to our 2002 financial performance were During 2002 our financial performance improved working capital and cost improvements. Days of significantly, considering that 2001 included a substantial inventory on hand improved by four days, while days of gain from the sale of our pharmaceuticals business. sales receivable declined by four days. Combined, these Many of our most important markets were emerging from two improvements represent a working capital savings of one of the most difficult years of the past two decades. $500 million. Our costs remained under good control with There still remains considerable uncertainty about the total cost productivity up about 3 percent. economic recovery and unfolding global events, so we The most important action of 2002 was the realign- are being very deliberate going into 2003 until the eco- ment of our businesses. We formed five growth nomic direction is clear. platforms and made the difficult decision to separate Yet in this environment DuPont people and businesses DuPont Textiles & Interiors (DTI) from the company. We performed admirably in 2002. We demonstrated noteworthy believe that separate from DuPont, the DTI businesses earnings growth and outperformed our competition. will have the most flexibility to respond to the competi- Earnings recovered dramatically from the prior year’s low tive realities of their markets. Overall, our five platforms levels, putting aside the significant gain in 2001 from the have already begun to show their potential as a powerful sale of DuPont Pharmaceuticals. This performance mechanism for identifying and capturing opportunities in places us at the top of the chemical industry and ahead key growth markets. 4 Members of the Office of the Chief Executive, from left: John Hodgson, Executive Vice President; Stacey Mobley, Senior Vice President, Chief Administrative Officer & General Counsel; Dennis Zeleny, Senior Vice President, Human Resources; Gary Pfeiffer, Senior Vice President & Chief Financial Officer; Tom Connelly, Senior Vice President & Chief Science & Technology Officer; Richard Goodmanson, Executive Vice President & Chief Operating Officer; Chad Holliday, Chairman & Chief Executive Officer.
  • 7. Six Sigma continues to be the “way we work” at DuPont. Our 1,200 Black Belts and 250 Master Black Belts remain the foundation of our effort, but the use of Six Sigma tools, methodologies, and thinking is now wide- spread. Over 10,000 DuPont people have been through Green Belt training, including our corporate officers. Over 11,000 projects are now in our database. Our newest trend in Six Sigma is the increasing number of revenue growth projects. Over 1,300 such projects are underway and, in 2003, we will more than double that number. One project is expected to add more than half a million dollars of fire extinguishant sales in our Asia Pacific Region. Also, a DuPont sales representative gained as much as $6.5 million in new business through a project that saved an Elvanol® resin customer more than $1 million a year. Another project resulted in nearly a million dollars in pretax operating income by increasing Chairman & CEO Chad Holliday, surrounded by DuPont employees waterborne paint production capacity at our Mt. Clemens, from around the world, rings the closing bell at the New York Stock Michigan, plant. Exchange on the 200th anniversary of DuPont, July 19, 2002. Meanwhile our commitment to science is as strong as ever, and it is the engine for sustainable growth in our people’s lives even as we reduce the environmental third century. We are building on our reputation for footprint of our operations and our products. innovation by putting science to work for our customers We accomplished all that we did in 2002 while living around the world. In 2002 we launched new coatings our core values of safety, health and environmental technology at the DaimlerChrysler plant in Newark, stewardship; ethical business practices; and respect for Delaware, and introduced our new Organic Light Emitting people. After 200 years, these values give a unique Diode (OLED) flat panel displays, which will be manufac- texture to life in our company, which anyone who has tured in Taiwan. We made advances in areas such as worked here or who is close to us recognizes as distinctly fuel cells, which will be used to power motor scooters, DuPont. These values remain the trusted guides and and in safety glass and crop protection products. We uncompromising standards for how all of us at DuPont continue to solve our customers’ problems and improve will conduct our business around the world. 5 Chad Holliday Chairman & CEO March 1, 2003
  • 8. SUSTAINABLE GROWTH STRATEGIES Research Associate Sharon Haynie uses microorganisms tailored for large-scale her expertise in visualizing, quantifying chemical synthesis. Her work plays an and manipulating proteins and peptides important role in the corporate strategy to help her colleagues in the DuPont to develop “greener” processes by Biochemical Science and Engineering integrating biology with the company’s Group understand the performance of traditional strength in chemistry. DuPont enters its third century well positioned to com- unrivaled in its ability to meet market needs. pete in a rapidly changing world. Building on its core as For example, the company is bringing together a science company, DuPont will achieve sustainable diverse technologies, developed both internally and revenue and earnings growth through three strategic acquired from others, to meet market demand for 6 pathways: integrated science, knowledge intensity and brighter, clearer, more flexible and more energy-efficient productivity improvement. displays on electronic and communication devices. INTEGRATED SCIENCE KNOWLEDGE INTENSITY Integrated science is the innovation driver for Knowledge intensity is the structural driver of sustainable growth. DuPont is augmenting its traditional sustainable growth. Today, more than ever before, technology platforms of chemistry, physics and DuPont uses its technical expertise and market knowl- engineering with biology, and is accessing the technology edge to capture added value from its products, services of others through alliances, licensing and acquisitions. and brands. With this integrated technological expertise, DuPont is For instance, working with customers in the textile
  • 9. Don Johnson, Group Vice President – John Himes, Senior Vice President – DuPont Operations & Services (left), with DuPont Corporate Strategy (center), Charles Simmons, a Six Sigma Master Matt Trerotola, Director – Corporate Black Belt who is working on transactional Plans and Nancy Tunstall, Executive excellence in supply chain management Assistant, review a presentation on for DuPont Engineering Polymers. corporate direction. industry, DuPont used its expertise in ink jet printing reductions and capacity improvements, to the technology to develop Artistri TM, a system that not only “demand” side where improvements have a direct provides the ink, but also the software and equipment for impact on sales growth. digital printing on textiles. By working closely with customers, DuPont can 7 In another example, DuPont is building on its long better understand where to improve quality or service, history of safe handling of sulfuric acid to help refineries how to develop new markets, and how to be more regenerate spent acid safely and in an environmentally effective in such areas as branding and selling. Further, sound manner. the company is using its experience with Six Sigma to help customers improve their own operations. PRODUCTIVITY IMPROVEMENT Productivity improvement is the operational As part of its transformation to a sustainable growth driver of sustainable growth. Driven by a well-devel- company, DuPont in 2002 aligned its businesses into sev- oped Six Sigma process, productivity improvements eral market-and-technology-focused growth platforms are shifting from the “supply” side, such as cost and created DuPont Textiles & Interiors.
  • 10. DUPONT AGRICULTURE & NUTRITION Senior Research Scientist Zuo-yu A dealer for Pioneer Sementes, Ltda., Zhao is working at Pioneer Hi-Bred checks the quality of soybeans International’s research center in during the 2002 harvest in Brazil, a Iowa to develop new methods for leading world producer of soybeans. transformation of maize and nutrition improvement of sorghum grains. Strategic Direction: Leverage DuPont strengths in European corn borer. Business growth will come from biotechnology and its knowledge of the food value chain providing seeds with greater yields, through continuing to increase the quality, quantity and safety of the global close relationships with growers, and by entering new food supply. markets. For instance, Pioneer recently formed a joint ven- 8 ture in China to produce top-performing seed corn. Core Markets: Production Agriculture; Food Processing. The DuPont global crop protection business builds DuPont is unique in its ability to offer a full range of on decades of experience helping growers protect science that improves the quality, quantity and safety of against disease, insects and weeds to improve yields of the world’s food supply. all major crops. Recent examples are AvauntTM and Pioneer Hi-Bred International is the world’s leading Steward® insecticides, which use a new mode of action seed company with more than 200 hybrids that help grow- to control pests on cotton, fruits and vegetables. ers get the maximum yield. Pioneer continues to develop DuPont works closely with food companies to hybrids, such as an improved corn seed that resists the develop healthier and great-tasting products for
  • 11. 2002 NET SALES – $4.5 billion “I’VE WON THE NATIONAL YIELD CONTEST THE LAST SIX YEARS IN A ROW WITH PIONEER ® BRAND CORN HYBRIDS. YOU’VE GOT TO START WITH THE BEST GENETICS TO GET THE BEST YIELDS AND THAT’S THE DECISION THAT’S PAID OFF FOR ME.” FRANCIS CHILDS WORLD RECORD CORN GROWER MANCHESTER, IOWA Top: The DuPont Qualicon BAX® One year after its introduction, Howard Minigh, Group Vice Bottom: DuPontTM AvauntTM insecticide 8th ContinentTM soymilk, a joint President – DuPont Agriculture & detection system contributes to helps cotton farmers in West Africa venture between DuPont and Nutrition (left) with Francis Childs, a food safety by identifying bacteria defeat pests and boost yields, yet has General Mills, is number two in Manchester, Iowa, farmer who set a and pathogens with fast results and a low impact on the environment. its market in the United States. world record for dry land corn better than 99 percent accuracy. The region is the world’s third largest production with Pioneer seed. exporter of cotton fiber. consumers. The company has a joint venture with of services and products to farmers. General Mills to develop and market 8th Continent TM DuPont Qualicon is a leader in providing fully auto- soymilk. In its first year, 8th ContinentTM, which includes mated, genetics-based technology to identify bacteria SolaeTM soy protein from DuPont Protein Technologies, and pathogens with better than 99 percent accuracy and 9 ranked number two in soymilk sales. fast results. The U.S. Department of Agriculture’s Food DuPont and Bunge Limited announced plans in Safety Inspection Service adopted Qualicon’s BAX® January 2003 to form an alliance to significantly grow detection system as the standard for identifying Listeria their agriculture and nutrition businesses. The alliance monocytogenes in food and food-processing equipment. will include a joint venture for global production and Research drives growth in many ways: biotechnology distribution of specialty food ingredients, beginning with to improve seeds; new modes of action for treating crop soy proteins and lecithins; a biotechnology agreement to pests; new opportunities for incorporating SolaeTM in develop and commercialize soybeans with improved foods and beverages; and broadening applications for the quality traits; and an alliance to develop a broader offering BAX® detection system.
  • 12. DUPONT COATINGS & COLOR TECHNOLOGIES “NEWARK ASSEMBLY IS THE FIRST PLANT IN THE WORLD TO USE THE BREAKTHROUGH TECHNOLOGY FOR CLEARCOAT PAINT DEVELOPED BY DUPONT.” JIM WOLFE NEWARK, DELAWARE A S S E M B LY P L A N T M A N A G E R DAIMLERCHRYSLER Top: DuPontTM SupraShieldTM Bottom: DuPont is a global leader Automobile owners in the U.K. and DuPont Research Fellow Sheau-Hwa Ma, automotive clearcoat finish in color technology and coatings other countries are able to restore an expert in polymer synthesis and resists scratches and mars with- for a variety of applications. their damaged vehicles using polymer architecture, created a new color tint line, DuPontTM Imron® PowerTint, out sacrificing other important DuPont refinish paints. to make a new topcoat, DuPontTM appearance attributes. Imron® Elite polyurethane, for trucks. Strategic Direction: Develop and provide ingredients, paint technology to develop and market coatings, ingredi- inks, coatings and color technologies that protect, deco- ents, systems and technologies that meet industrial and rate and add functionality to a wide variety of surfaces consumer demands for performance while protecting and substrates. the environment. 10 One example is DuPont “SuperSolids” technology Core Markets: Automotive; Collision Repair; Paper; which has helped DaimlerChrysler reduce clearcoat air Industrial Coatings; Digital Printing; Architectural emissions by 25 percent at its Dodge Durango assembly Coatings; Plastics. plant in Newark, Delaware. This product is based on a DuPont is the global leader in providing high polymer engineering breakthrough that has resulted in technical content coatings, high-quality titanium dioxide a class of coatings that reduce solvents and increase (TiO2) products and ink jet systems for digital printing. the solids content of coatings. Another example is The company uses its long history as an innovator in SupraShieldTM, a premium automotive clearcoat finish
  • 13. 2002 NET SALES – $5.0 billion Ed Donnelly, Group Vice President – DaimlerChrysler reduced clearcoat air DuPont Coatings & Color Technologies emissions by 25 percent at its Dodge (left), with Warren Thompson and Durango assembly plant in Newark, Cari McConville at the DuPont Front Royal Delaware, using “SuperSolids” Plant in Virginia. technology developed by DuPont. that resists scratches without sacrificing other important in major growth markets, particularly Asia Pacific. appearance attributes. The company also has a strong position in digital DuPont is the leading producer of refinishes for inks and has developed a technology called ArtistriTM vehicles involved in collisions, and is a major supplier of used for printing on textiles. DuPont is broadening its 11 industrial paints used to protect everything from bridges involvement in this industry with technology for commer- in the United States to windmills in Europe. These cial and photographic applications. businesses will help drive growth in this platform. Driving growth for the Coatings & Color Technologies Complementing the DuPont finishes business is TiO2, platform are expansion in Asia Pacific; further development a white pigment that imparts opacity, color, ultraviolet of new coatings systems, such as DuPont TM HyperCureTM resistance and aesthetic benefits to paint, paper, plastics for collision repair; and new grades of TiO2 that can be and a host of other products. DuPont is the leading world used in long-wearing applications, such as super-durable producer of titanium dioxide and is expanding its presence automotive paint and laminate flooring.
  • 14. DUPONT ELECTRONIC & COMMUNICATION TECHNOLOGIES Top: Solar panels, such as those Bottom: Diane Gulyas, Group Vice Temperature Co-Fired Ceramic Above: DuPont is working with Asia shown here in Hamborn, Germany, President – DuPont Electronic & Applications Support Laboratory in Pacific Fuel Cell Technologies to com- are made by Isofoton of Spain, and Communication Technologies Research Triangle Park, North mercialize proton exchange membrane incorporate DuPont advanced (far right), with employees at the Carolina. From left: Mike Barker, fuel cells for the Taiwan electric scooter materials for the fabrication of DuPontTM Green TapeTM Low Haixin Wang and Tommeka Marley. market to help reduce dependence on photovoltaic modules. oil and improve air quality. Strategic Direction: Use DuPont strong materials and materials play an important role in all areas of electronics technology base to help advance the speed and reduce the – consumer, military, industrial, automotive, medical, size and cost of electronic and communication devices. computers and communications. The company broadened its presence in the elec- 12 Core Markets: Semiconductors; Printed Circuit Boards and tronics industry during 2002 when it acquired ChemFirst, Components; Communications; Displays and Imaging. a leader in providing materials that enable semiconduc- DuPont science and innovation in electronic materi- tor manufacturers to make advanced integrated circuits. als and components are major drivers of growth, both for ChemFirst will help DuPont speed the development of a DuPont and for its value chain partners. Its materials and new generation of photoresist polymers, which is key services help the global electronics and communications to lowering costs and increasing the performance of industries make devices that are smaller, faster and more integrated circuits and electronic equipment. portable and powerful than ever before. DuPont electronic Businesses in this platform bring expertise in fluorine
  • 15. 2002 NET SALES – $2.5 billion “ASIA PACIFIC FUEL CELL TECHNOLOGIES HAS SPENT THE PAST SEVERAL YEARS REFINING ITS TECHNOLOGY TO BE ABLE TO DELIVER A LOW-COST, MARKET-DRIVEN PRODUCT FOR COMMERCIAL USE. HIGH-QUALITY PRODUCTS, MARKET PRESENCE AND DUPONT BRAND RECOGNITION WILL COMPLEMENT THAT OFFERING TO HELP DRIVE COMMERCIALIZATION IN THE SCOOTER MARKET.” J E F F E R S O N YA N G CHAIRMAN ASIA PACIFIC FUEL CELL TECHNOLOGIES Top: The DuPontTM Cyrel ® FAST DuPont Physicist Ian Parker holds DuPont is developing a new four polymer-based light-emitting generation of displays – called system uses thermal processing to displays, each generating a differ- Organic Light Emitting Diodes make flexographic printing plates, ent color. Polymer-based displays (OLEDs) – for electronic equipment. eliminating the harsh solvents used will dramatically improve visuals on to create the raised area that makes hand-held devices. an inked impression on paper. technology to markets through DuPontTM Teflon ® and displays produced on plastic, reducing production costs other materials used in high-purity fluid handling, printed and fitting new designs. circuit board films and laminates, and through electronic DuPont electronic products also help meet needs for gases used in semiconductor chip fabrication. flexibility and performance in rapidly growing automotive 13 DuPont is at the leading edge in developing a new applications. Examples include materials for mirror and generation of displays for electronic equipment called seat heating, anti-lock brake systems and traction control, Organic Light Emitting Diodes (OLEDs). These displays and air bag sensors. eliminate the need for a backlight and offer improved DuPont Electronic & Communication Technologies sup- screen performance with bright, vivid colors and wide- ports the company’s sustainable growth mission. Examples view angles in a very thin form. First-generation OLED include proton exchange membrane fuel cells and advanced displays will be integrated into hand-held devices and materials for photovoltaics, both of which will help industrial applications. Future generations will feature reduce dependence on oil and improve overall air quality.
  • 16. DUPONT PERFORMANCE MATERIALS DuPontTM SentryGlas® Plus interlayer Craig Naylor, Group Vice President – DuPont Performance Materials (center), helps protect the Broward Center in Japan with Yasuhiro Ohguro (left) and for the Performing Arts in Florida Yosuke Fukada of DuPont Engineering against damage from hurricanes. Polymers, DuPont K.K. Strategic Direction: Use of DuPont expertise in materials every vehicle system. Applications include engine and science to provide high performance polymer materials, sys- chassis components; electrical insulation, connectors tems and solutions for demanding applications worldwide. and electronic component housings; seat belt mecha- nisms and air bag doors; and exterior body parts. 14 Core Markets: Automotive; Electrical and Electronics; Development is underway to enable the future pro- Packaging; Construction. duction of safer, more fuel-efficient and lower emission As the world’s premier materials science company, vehicles. One example is work with a leading academic DuPont is at the forefront of developing and providing consortium to develop 42-volt electronic technology that high-value products that are lighter, stronger, safer and will make it possible to replace nearly all of today’s more functional than the materials they replace. inefficient automotive mechanical and hydraulic systems. In the automotive industry, DuPont supplies engi- Flexible resins, such as DuPontTM Surlyn®, help neering and high-performance polymers for virtually food manufacturers maintain the integrity of their
  • 17. 2002 NET SALES – $4.9 billion “WE HAVE WORKED CLOSELY WITH DUPONT FOR 50 YEARS TO BE ON THE CUTTING EDGE OF NEW PRODUCTS AND SERVICES FOR OUR CUSTOMERS IN THE GLOBAL AUTOMOTIVE INDUSTRY. WE HAVE BEEN RECOGNIZED BY CUSTOMERS FOR OUR QUALITY, TECHNOLOGY AND SERVICE, AND WE CREDIT MUCH OF THAT SUCCESS TO OUR RELA- TIONSHIP WITH DUPONT.” MIKE KATERMAN PRESIDENT AND CEO MAGEE RIETER AUTOMOTIVE SYSTEMS DuPont Mechanical Engineer Anand Consumers in Europe use water- Working together, Ford, Siemens system reduces hydrocarbon Jagota and his colleagues conducted soluble pouches produced with and DuPont developed the first emissions by allowing a percentage DuPontTM Elvanol® resin to dispense tests to catalog how polymers can thermoplastic air intake manifold in of the exhaust gas to be returned to strengthen glass. DuPontTM a pre-measured amount of deter- Europe that incorporates an the manifold. The new manifold of SentryGlas® Plus interlayer was one DuPontTM Zytel® nylon resin is gent into their laundry. exhaust gas recirculation system result of their efforts. using lost-core molding. The featured on select engines. packages. Packaging resins and films also meet the innovative technology offers improved distance with needs of an “on-the-go” population for more conven- superior feel and control – increasing resin use in cores, ient, recyclable or disposable containers. A new mantles and covers. insulated beverage label wrap called DuPontTM Cool 2GoTM, Recognizing the growing need to keep offices, 15 which keeps beverages cold for up to twice as long as public buildings and homes safe, DuPont developed a drinks without the wrap, is being tested in the United new glass interlayer, SentryGlas® Plus, which protects States. In Europe, water-soluble pouches produced against blasts and storms. This technology is finding with Elvanol ® resin are used to release pre-measured growing use in government and office buildings where amounts of detergent into cold water, making security is important. washday easier. A strong development pipeline and expansion in The company also developed a new polymer for emerging markets will help drive further growth of busi- use in golf balls. Called DuPontTM HPF polymer, this nesses in DuPont Performance Materials.
  • 18. DUPONT SAFETY & PROTECTION “HELP IN ELIMINATING AT-RISK BEHAVIORS, AND SETTING IN PLACE PROVEN SAFETY SYSTEMS, IS WHERE DUPONT HAS BEEN SO EFFECTIVE.” NILE GLASEBROOK SAFETY SERVICES VICE PRESIDENT YELLOW TRANSPORTATION Bottom: Easy-to-clean DuPontTM Corian® Top: Contractors in the U.K. and DuPont Safety Resources was hired elsewhere use DuPontTM Tyvek® surfaces help protect children, such to enhance the safety culture of HomeWrap® to reduce moisture as those enjoying lunch at the Yellow Transportation, one of North and to prevent mold and mildew McDonald’s restaurant in New York America’s largest movers. The in homes and other buildings. City’s Times Square, from germs. result was fewer lost-time injuries and significant cost savings. Strategic Direction: Integrate DuPont technology, Through its Safety & Protection platform, DuPont know-how and market presence to protect people, provides businesses and governments with a broad set of property, operations and the environment. solutions ranging from protective clothing to consulting services that reduce on-the-job injuries and deaths. 16 Core Markets: Construction; Personal Protection – The company is using its leadership in materials Industrial and First Responders; Medical; Process sciences to develop protective clothing that is even safer Industries; Safety and Operations Services. and more comfortable for people working with hazardous For 200 years, commitment to safety and health has materials or in dangerous environments. been the company’s most fundamental core value, and It also is developing integrated systems, like today DuPont is recognized as one of the world’s safest DuPontTM StormRoom with Kevlar ®, designed to protect industrial companies. Now, more than ever, DuPont is people inside their homes or workplaces from flying using its experience, knowledge, technology and products debris during tornadoes. to help people around the world address their needs for DuPontTM Nomex® brand fiber, trusted by firefighters safety, security and protection. for more than 20 years, will soon be available for consumer
  • 19. 2002 NET SALES – $3.5 billion Top: Long used to help protect the Bottom: Ellen Kullman, Group Vice Chemist Dana Hammer is part of a police and military personnel from President – DuPont Safety & Protection, team that performs state-of-the-art bullets, DuPontTM Kevlar ® brand fiber with firefighters David Corbin and testing to prove the versatility and value of DuPontTM Corian® and now protects police dogs as well. Steven Crouch in Henrico, Virginia. Fire- fighters rely on DuPontTM Nomex® brand DuPontTM Zodiaq® solid surfaces fiber to protect themselves. compared to competitive products. use to protect people and provide faster escape from fires. responders clean and disinfect accident areas, as well The company’s safe operation of hazardous facilities as in other critical applications. for more than 200 years is now being used to help the DuPont serves consumers and the construction U.S. Department of Defense to neutralize and dispose of industry with such products as Corian® and the new 17 chemical weapons safely and, through its SafeReturnsTM Zodiaq ®, which provide attractive, easy-to-clean surfaces consulting service, DuPont has helped clients make for medical facilities, offices, homes and public spaces. improvements to their safety culture which are estimated Tyvek® HomeWrap ® helps reduce moisture and prevent to have avoided 18,000 injuries and 50 deaths during the mold and mildew within well-designed and constructed past three years. walls in homes and other buildings. Garments of Sontara® Other areas where DuPont is leveraging its science offer more comfort and protection for workers in health- include integrating Kevlar ®, long recognized for its pro- care and other industries. tection against bullets, into commercial aircraft DuPont Safety & Protection is focused on develop- cockpit doors to improve pilot and public security, and ing new products and services to protect people, using DuPont chemicals like Oxone® to help emergency property, operations and the environment worldwide.
  • 20. DUPONT TEXTILES & INTERIORS DuPontTM Stainmaster®carpet with Senior Research Scientist Jialin Sun Top: DuPont and Santista Chile, Bottom: The soft, comfortable fabric Tactesse® fiber is the first residential a customer of DuPontTM Lycra® of Dockers® Go KhakiTM pants is treated and her team in Kingston, Ontario, with DuPontTM Teflon® fabric protector. Canada, used their knowledge of carpet fiber to deliver a soft touch stretch fiber, worked together at a nylon fiber to develop products and with outstanding durability. large department store in Santiago, Many oil and water-based liquids, solutions for safer air bags, Chile, to promote the benefits of such as orange juice, soda and milk, Lycra® in jeans. including new side curtain air bags. bead up to minimize staining. Strategic Direction: Build on DuPont technical nized industrial brands. These brands reinforce market innovation, market insights and global brands and awareness and differentiation, and create consumer trademarks in the integrated fibers business to help pull-through demand for DTI and its customers. DTI customers succeed in an increasingly competitive combines brands with significant textile and soft floor 18 business environment. covering know-how, fiber technologies, global manufac- turing, research and distribution capabilities, leading Core Markets: Apparel; Carpet, Interior and Industrial intermediates positions and unequaled operational Uses; and Nylon, Polyester and Elastane Intermediates, scope and scale to compete in increasingly complex and related Specialties. global markets. DuPont Textiles & Interiors (DTI) is the world’s DTI is growing its apparel products in rapidly largest integrated fibers enterprise with manufacturing developing markets, such as China, and creating new or marketing presence in every major market and applications for its key products. One recent development region. The DTI brand portfolio includes powerful world- is approval granted DuPont by the U.S. Federal Trade wide consumer brands and a number of globally recog- Commission for a new generic fiber subclass (elasterell-p)
  • 21. 2002 NET SALES – $6.3 billion “STAINMASTER ® CARPET HELPS PREPARE OUR SALES TEAM FOR THE EDUCATED CONSUMER BY EDUCATING US. AN EDUCATED SALES TEAM WILL CLOSE MORE DEALS.” PAT DRENNER OWNER DRENNER’S CARPET GALLERY B A Y C I T Y, T E X A S Top: DuPontTM Lycra® combined with Steve McCracken, Group Vice A hiker wears a Sportsmaster jacket From left: George MacCormack, of soft, durable DuPontTM Supplex® President – DuPont Textiles & leather enables design flexibility, Group Vice President – nylon treated with Teflon® to repel Interiors, at DTI offices in Delaware. and brings fashion and beauty DuPont Textiles & Interiors; water and stains, and carries an to furniture. Richard Goodmanson, CEO of Overland Equipment backpack of DuPont Textiles & Interiors; and rugged DuPontTM Cordura® nylon. ing also will be factors influencing anticipated growth. in recognition of the unique qualities of T-400, the latest The global intermediates market is expected to innovation to be marketed under the Lycra® brand. In remain highly competitive. DTI will continue to empha- another area, the business is seeing strong consumer size its low cost structure, global scale and advantaged acceptance of the introduction of Teflon® fabric protector 19 technology. Specialty chemical niches are also being as the “easy care” answer for clothes today. developed. For example, an enhanced version of DTI is applying its expertise to grow its presence in Corfree® M1TM used in lubricants, metal working fluids the interior and industrial fibers markets, particularly with and corrosion inhibitors has improved active ingredients Stainmaster® and Teflon® in the North American carpet and very low levels of undesirable nitrogen compounds and home furnishings markets. Stainmaster® carpet with content. Diversification into several different end-uses Tactesse® fiber is the first residential carpet fiber to including food-grade have exciting potential. And the deliver a soft touch with outstanding durability. The company expects strong demand for Purified Terephthalic company also is accelerating new product introductions, Acid in Asia while continuing to assess alternative such as Lycra® to add stretch in upholstery. Auto builds strategies to optimize its polyester investments. and side air bag penetration and U.S. government spend-
  • 22. DUPONT IS A COMPANY BUILT ON VALUES Monds Island in the Delaware River estuary near Gibbstown, New Jersey, was once DuPont property. Donated to New Jersey Audubon Society in 1998 through the DuPont Land Legacy Program, it is today part of Twin Islands Sanctuary, a nesting site for Great Blue Herons and Bald Eagles. The skyline of Philadelphia is in the background. From the early 1800s, our founder’s business was charac- does business. All of our operations around the world are terized by a great concern for the safety and well being held to the same standards. of his employees even as they pursued a dangerous In 2002, DuPont enhanced its already world class occupation. He was one of the first American manufac- safety record by improving year-over-year total employee turers to hire a physician to look after sick or injured recordable illness and injury performance by 27 percent employees. He instituted overtime and night pay when and reducing severe injuries to our employees by an 20 these were rare in any firm. He even created a savings even larger margin. plan in which the company paid interest to employee In the environmental arena, we received external accounts. E. I. du Pont also was a man of high ethical recognition in the form of The American Greenways standards. As a manufacturer in the young United States, Award, jointly administered by The Conservation Fund he quickly established a reputation for honesty and fair and The National Geographic Society. This award was dealing that distinguished him throughout his life. presented to DuPont for our historic efforts in land Safety, health and the environment, ethical behavior, conservation, including our Land Legacy Program, which and respect for people remain the values of DuPont to since its inception in the early 1990s, has placed more this day. They are practiced everywhere the company than 18,000 acres of land valued at $50 million into perma-
  • 23. A new exhibit at Hagley Museum DuPont Thailand’s Corn Farm and corn cultivating supervision, DuPont India, in conjunction with in Wilmington, Delaware, is called projects aim to improve nutrition while the teachers, students, parents Intel India, is continuing a series of DuPont Science and Discovery. and quality of life and strengthen and villagers do the farming. The community workshops at a school Funded by DuPont, the exhibit the relationship between DuPont income from corn yield has been used in New Delhi. This nutrition features a “laboratory” for school and local communities. DuPont for school lunch programs, under- workshop was conducted for more provides Pioneer ® corn seed, children to learn about synthetic writing vegetable planting, poultry than 50 students and teachers by materials. Hagley Museum, on the planting materials, farm inputs farming for eggs and fish farming. Upasna Seth, a Delhi lecturer on site of the first DuPont mills, has food technology. been described as the finest industrial museum in the United States. nently protected status through donation or easement. fifth consecutive year, DuPont was named one of “The DuPont was also selected as a component of the Dow Most Admired Companies in Brazil” by Carta Capital Jones Sustainability World Indexes, the first index family magazine and the InterScience Institute. In the United tracking the performance of sustainability-driven compa- States, DuPont was honored as one of the “100 Best nies worldwide. Our concern for health was recognized Companies For Working Mothers” by Working Mother by the achievement of DuPont Singapore which won the magazine, and one of “The 50 Best Companies for Latinas 21 prestigious Singapore Health Gold Award. to Work for in the United States” by LATINAStyle magazine. During 2002, the company’s concern for the people In the communities where we operate, DuPont works of DuPont was recognized in numerous ways around the to promote social progress, economic success, and globe. DuPont Mexico was named one of “The Best environmental excellence through the DuPont Community Companies to Work for in Mexico” by Expansion maga- Fund. We actively encourage volunteerism among our zine and the Great Place to Work Institute®. DuPont employees and annually honor the most outstanding Korea was named one of the “Top 20 Great Workplaces” through the DuPont Volunteer Recognition Program. in Korea in a survey conducted by the Korea Economic The values on which DuPont was built are the Daily and the Eltech Trust Management Institute. For the values that sustain us today.
  • 24. BOARD OF DIRECTORS Charles O. Holliday, Jr. Chairman of the Board and Chief Executive Officer Alain J. P. Belda Chairman and Chief Executive Officer, Alcoa Inc. (producer of aluminum and alumina) Charles O. Holliday, Jr. Curtis J. Crawford Richard H. Brown Chairman of the Board and Chief Executive Officer, Electronic Data Systems (global services company) Curtis J. Crawford President and Chief Executive Officer, Onix Microsystems, Inc. (developer and manufacturer Alain J. P. Belda Louisa C. Duemling Lois D. Juliber H. Rodney Sharp, III of optically transparent switches for communications networks) Louisa C. Duemling Edward B. du Pont Deborah C. Hopkins Head, Corporate Strategy, Citigroup, Inc. (diversified financial Richard H. Brown Edward B. du Pont Göran Lindahl Charles M. Vest services company) Lois D. Juliber Chief Operating Officer, Colgate-Palmolive Company (consumer products company) Göran Lindahl Co-Chairman, Nanomix, Inc. (a developer of products Deborah C. Hopkins Masahisa Naitoh made from nanoscale materials and components) Masahisa Naitoh Executive Vice Chairman, ITOCHU Corporation (global trading company) William K. Reilly President and Chief 22 William K. Reilly Executive Officer, Aqua International Partners, LP (finances water supply and wastewater treatment in developing countries) Former Administrator, U.S. Environmental Protection Agency H. Rodney Sharp, III Charles M. Vest President, Massachusetts Institute of Technology