1) Paul Schickler, President of DuPont Pioneer, presented at the Morgan Stanley Global Chemicals Conference on November 12, 2014.
2) He outlined DuPont Pioneer's strategy to focus on Agriculture & Nutrition, Advanced Materials, and Bio-Based Industrials to drive innovation and growth.
3) Key areas of focus include new corn and soybean genetics with improved yields and traits, expanded seed treatment offerings, and digital agriculture services to optimize field productivity.
2. Forward-Looking Statements
This document contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” "believes," “intends,” “estimates,” “anticipates” or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, regulatory approval, market position, anticipated benefits of recent acquisitions, timing of anticipated benefits from restructuring actions, outcome of contingencies, such as litigation and environmental matters, expenditures and financial results, are forward looking statements. Forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company’s control. Some of the important factors that could cause the company’s actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; significant litigation and environmental matters; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, weather events and natural disasters; ability to protect and enforce the company's intellectual property rights; successful integration of acquired businesses and separation of underperforming or non- strategic assets or businesses and successful completion of the proposed spinoff of the Performance Chemicals segment including ability to fully realize the expected benefits of the proposed spinoff. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.
Developing Markets
Total developing markets is comprised of Developing Asia, Developing Europe, Middle East & Africa, and Latin America. A detailed list of all developing countries is available on the Earnings News Release link on the Investor Center website at www.dupont.com.
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3. DuPont is a Science Company
DuPont has a 200-year record of creating value for customers and owners by connecting science to the marketplace to create novel solutions the world needs. Today, DuPont is creating higher growth and higher value for shareholders by leveraging advanced science and technology, market and value chain knowledge, global scale, and disciplined management to drive its next great era of innovation.
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4. These Three Strategic Priorities Position DuPont For The Next
Wave Of Innovation And Growth
Path to Future Growth
Agriculture &
Nutrition
Extend our leadership
across the high-value,
science-driven
segments of the
Agriculture and Food
value chain
Advanced
Materials
Strengthen and grow
our leading position in
differentiated high-value
materials and
leverage new sciences
Bio-Based
Industrials
Develop world-leading
industrial
biotechnology
capabilities to create
transformational new
bio-based businesses
• Seeds
• Agricultural Chemicals
• Specialty Food
Ingredients
• Enzymes
• Biofuels
• Biomaterials
• Advanced Polymers
• Protective Materials
• Electronic Materials
• Alternative Energy
DuPont’s Strategy To Build Higher Growth, Higher Value
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5. DuPont Delivers Productivity and Profitability for
Growers and Food Companies
DuPont holistically addresses the challenge of feeding the world
• Improving agricultural productivity and animal feed efficiencies
• Enhancing the nutritional value of food
• Protecting food and reducing waste
Ag Productivity
• Integrated seed solutions
• Germplasm / traits
• Seed-applied technologies
• Crop protection
• Decision services
Bio-based Industrials
• Biofuels, biomaterials and
biochemicals
• Enzymes
Nutrition Solutions
• Specialty ingredients (enzymes
cultures, probiotics, soy protein,
emulsifiers, texturants, etc.)
• Animal nutrition
Food Protection /
Packaging Solutions
• Antimicrobials, antioxidants,
diagnostics
• Specialty packaging resins
(sealants, adhesives)
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Unique Capabilities Across the Ag and Food Value Chain
6. 2020 2030
3.25
2009
1.85
Other
North America
Asia-Pacific
Europe
4.88
Emerging Middle Class (Billions)
3 B
1+
B
0.32
0.34
0.66
0.53
0.48
0.33
0.70
1.74
3.23
0.68
0.32
0.65
750
800
850
900
950
1000
2007
2008
2009
2010
2011
2012
2013
2014
Production Consumption
Million MT
Global Demand Growth for Grain
Global Corn
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Long-term, Sustainable Demand Remains Intact
Data Source: United Nations, OECD and USDA.
7. Growth Priorities in Agriculture
Brazil
Central
and
Eastern
Europe
Western
Canada
India China
Genetic
Improvement
Optimum® AcreMax®
Optimum® AQUAmax®
EncircaSM Services
T Series soybeans
Plenish® soybeans^
Rynaxypyr®
Cyazypyr®
Fungicides
Lumigen™
Seed Sense
Solutions
Extending our Global Reach
Innovative Products and Services
Next Gen Soy
Hybrid Rice
Hybrid Wheat
Africa
*Optimum® GLY Herbicide Tolerance and LibertyLink® Herbicide Tolerance for canola
Optimum® Leptra™ ^
DP4114
Canola HT*
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Strong Market Positions Today, Attractive Growth Opportunities
8. Innovation – Leading Insect Control Solutions in
Corn
Optimum® AcreMax®
Family of Products DP4114
Optimum® Leptra® ^
Insect Protection
• Maximize yield by protecting the potential of
our superior genetics
• Multiple modes of action for enhanced
protection against lepidopteran pests
including earworm and fall armyworm
• Enhanced trait durability
• Limited, stewarded 2014 launch in the
Southern US; strong yield performance with
good grain quality
Expected to represent about 70%
of Pioneer NA corn volume in 2015
North America launch expected
early in the 2
nd
half of this decade*
Small, introductory launch
expected in Brazil in 2015*
Optimum® Leptra™ hybrid Control hybrid
• Enables additional triple-stack product
options with enhanced yield performance
and strong agronomics
• Strong efficacy and performance in 2014
research trials
• Molecular stack of proven Herculex® trait Bt
proteins
• US and Canada cultivation approvals in
place
• Multiple options to manage field-by-field
insect control needs
• Multiple modes of action for protection
against above and below ground insects
• Expanding lineup of triple-stack products
• Simplified refuge management
• High-yielding Pioneer genetics
*Pending regulatory approvals 8
Tailored Options for Insect Control
9. Innovation – Optimum® AQUAmax® hybrids
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Continues to Deliver Rain or Shine
Optimum® AQUAmax® Hybrids
• Exceptional performance in water-limited
environments AND
• Top-end yield potential under favorable
conditions
• Planted on about 10 million acres in 2014
• Optimum® AQUAmax® hybrids have delivered
year after year across a wide variety of
environments since 2011
• Tested in over 50,000 on-farm comparisons
since introduction in 2011
• Continues to outperform competitive drought
products
• Available in a wide-range of trait options
• Targeted for the Western corn belt and areas
prone to chronic drought stress
• Native trait technology can be leveraged outside
of the US (e.g. Ukraine and France)
AQUAmax vs. All Competitors
2011-2014
Source: From 2011 to 2014, Optimum® AQUAmax® products were grown in on-farm against competitive hybrids (+/- 4 CRM) in 5,262 comparisons in water limited environments and 47,705 comparisons in favorable growing conditions.
Water limited environments are those in which the water supply/demand ratio during flowering or grain fill was less than 0.66 on a 0-1 scale (1=adequate moisture as determined by Pioneer) using Pioneer's proprietary EnClass® system
and in which the average yield of the commercially available hybrids was less than 150 bu/acre. Moisture levels were measured at the nearest weather station. Favorable growing conditions are locations where yield levels were at or
above 150 bu/acre on average, regardless of moisture levels. Product performance in water-limited environments is variable and depends on many factors such as the severity and timing of moisture deficiency, heat stress,
soil type, management practices and environmental stress as well as disease and pest pressures. All hybrids may exhibit reduced yield under water and heat stress. Individual results may vary. Product performance is
variable and subject to any number of environmental, disease and pest pressures.
10. Innovation - 2014 North America Corn Performance
Strong Corn Performance
In Grower Fields
• Performance advantage in top-end yield
environments with many +300 bpa yields
• Optimum® AQUAmax® hybrids continue to
perform rain or shine
• Promising 2014 class of new genetics with an
improving triple stack lineup
• Outstanding performance in Western and
Southern corn belt (113 and 118 maturities)
• Strength in 7 million acre silage market with
growing BMR lineup
• New insect protection event DP4114 performing
well in research trials
• Convenience of Optimum® AcreMax® insect
protection in about 70% of 2015 volume
• Comparisons represent on-farm side-by-side
results from growers fields
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Performance Leadership Under This Season’s High-yielding Conditions
Source: 2014 Pioneer on-farm trial database as of October 28, 2014. Customer comparisons based on 2014 yield results including data from weigh wagon and PKP trials for all
Pioneer® brand hybrids against all competitors. Individual results may vary. All data weighted by comparisons within 4CRM and adjusted to 15% moisture. Product
performance is variable and subject to any number of environmental, disease and pest pressures.
Double and Triple Stacks vs. All
Competitors
11. Innovation – New Corn Genetics
Promising Class of New Genetics
• Industry leading genetic diversity, improved yield
and agronomic performance protected by
leading trait options
• 2014 class of new genetics are expected to
represent about 20% of 2015 sales volume
• New genetics since 2012 are expected to
represent about 60% of 2015 sales volume
• New classes locally tested and advanced from
about 1,300 corn IMPACT™ trials annually
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New, Higher-yielding Genetics Create Pricing Opportunity
2014 Class vs. All Competitors
Source: 2014 Pioneer on-farm trial database as of October 28, 2014. Customer comparisons based on 2014 yield results including data from weigh wagon and PKP trials
compared against all competitors. Includes all new Pioneer hybrids released in 2014 vs. competitor brand hybrids tested in 2014. Individual results may vary. All data weighted
by comparisons within 4CRM and adjusted to 15% moisture. Product performance is variable and subject to any number of environmental, disease and pest pressures.
12. Innovation – New Technology for Soybean and
Canola growers
Pioneer® brand T Series Soybeans Plenish® High Oleic Soybeans^ Optimum® GLY Canola
• Soy-based solution with 20% less saturated
fat than commodity soybean oil
• Yields on par with Pioneer® brand elite
commercial varieties
• Expanded contracting options for growers in
2015
• Import approval received in markets that
represent about 90% of US soybean exports
Expect T Series mix to be
about double in 2015
Developed through proprietary gene
shuffling technology
Biotech soybeans with consumer
benefits
• Provide growers increased application
flexibility
• Offered in combination with Pioneer
Protector® traits
• Expected availability later this decade,
pending regulatory approvals
• Out-licensing agreement recently signed
with Crop Production Services (CPS)
• Strong defensive traits
• Varieties containing the Genuity® Roundup
Ready 2 Yield® trait are expected to be
about 10% of volume in 2015
• Newest Pioneer genetics with improved field
emergence
• 2015 expected launch of native technology
for increased flexibility and high tolerance to
sulfonylurea herbicides
*Pending regulatory approvals 12
Technology Advancements in Oilseeds
13. Innovation - 2014 North America Soybean Performance
Pioneer® brand T Series soybeans Pioneer® brand 2014 soybean class
• Solid competitive performance of T Series soybean varieties
• Promising 2014 T Series class of new genetics
• T Series expected to double in 2015 to nearly two-thirds of volume
• Genuity® Roundup Ready 2 Yield® expected to double in 2015 to about 10% of volume
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High Yield Protected By Defensive Trait Packages
Source: 2014 Pioneer on-farm trial database as of October 28, 2014. Customer comparisons based on 2014 yield results including data from weigh wagon and PKP trials for all
Pioneer® brand varieties compared against all competitors. Individual results may vary. All data weighted by comparison within 3RM. Product performance is variable and
subject to any number of environmental, disease and pest pressures.
14. Innovation - EncircaSM Services
Helping Growers Unlock The Full Potential Of Their Land
*According to an independent Forecastwatch.com report, Schneider Electric, DTN/The Progressive Farmer's parent company, has delivered the industry's most accurate temperature and precipitation forecasts for the last seven consecutive years. This same forecast technology is used in DTN’s solutions including the DTN Ag Weather Network, which contains over 2,000 individual weather stations.
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Strategic Collaborations Enhance Services
The largest and most accurate Ag Weather Network*
• DTN Ag Weather Network Most granular view of soils and topography
•USDA-ARS
•University of Missouri Improved crop and nitrogen models
•Data generated by 8 Midwest land-grant universities Seamless transfer of data for real-time insights
•John Deere
•AGCO
•Raven Industries Strong grower adoption
•EncircaSM View – 13,000+ Users
•EncircaSM Yield Nitrogen Management Service – About 300,000 acres invoiced so far
PROFITABILITY
RISK MANAGEMENT
SUSTAINABILITY
CONVENIENCE
Addressing the most critical challenges growers face
15. Innovation - EncircaSM Yield – Nitrogen Management Service
Scalable Sub-field Management Offers The Next Inflection in Crop Productivity
Example field, Willmar, MN
Source: DuPont Pioneer, in collaboration with University of Missouri & USDA-ARS
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Personalized Input Management Solutions
•Based on sub-field level Environmental Response Units (ERUs)
•Customized Nitrogen recommendations by ERU
•Managing by specific productivity potential to:
•Improve Low Productivity ERUs
•Optimize Medium Productivity ERUs
•Maximize High Productivity ERUs
•Opportunity to improve profitability by as much as $50-60 per acre through better nitrogen management
•$10 per acre service fee
•Tailored by a local Certified Services Agent (CSA)
•Most accurate, local weather data informed by the DTN Ag Weather Network improves probability of success
16. Innovation – Lumigen™ Seed Sense Solutions
DuPont™ Dermacor®
Insecticide Seed Treatment
DuPont™ Lumivia™
Insecticide Seed Treatment
DuPont™ Lumiderm™
Insecticide Seed Treatment
• Offers enhanced protection from
cutworms and flea beetles
• Residual control of insects up to 35
days after seedling
• Superb early season vigor
2014 Initial Launch in Brazil for
soybeans on over 3 million acres
2014 Initial Launch in
Canada for Canola
• Improved yield advantage
• Offering enhanced protection from
wireworm, black cutworm, white grubs
and fall armyworm
• Available in the US exclusively on the
newest Pioneer hybrids as part of the
Pioneer Premium Seed Treatment
program
• Supports emergency registration in
Brazil for control of Helicoverpa in
soybeans
• Excellent above and below ground
insect control to protect plant vigor
• Pursuing expansion to other crops
and markets
2015 Planned Launch in the
United States for Corn
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Extending DuPont Science Into Seed Treatment
17. Corn 40*
Soybeans 33*
Canola 9*
Corn 19
Soybeans 30**
Corn 8
Sunflower 14
Oilseed Rape 3
Corn 36
Corn 12
Rice 42
Corn 14
Global Reach – Key Growth Markets
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Note: Millions of hectares harvested. USDA 2014/15 estimate.
* US & Canada show hectares planted
** Soybean hectares represent Brazil only.
Expect ~ 50% of Our Growth Over Next Five Years Outside of NA
18. Global Reach - Brazil
Growth Drivers
•Corn and soybean strategy
Corn – 15 million hectares
Soybeans – 30 million hectares
•Rapid grower adoption of technology
•Leading Pioneer germplasm
•Local customer focus and route-to-market
•Investments in production and distribution capacity
•Small, introductory launch of Leptra™ insect protection expected in 2015, pending regulatory approvals
•Adoption of DuPont™ Dermacor® insecticide seed treatment in soybeans
•DuPont™ Dermacor® insecticide seed treatment for corn, pending regulatory approval
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19. Global Reach – Central and Eastern Europe
Growth Drivers
•Multi-crop strategy
Corn – 8 million hectares
Sunflower – 14 million hectares
Oilseed rape – 3 million hectares
•Long history and local knowledge
•Recent investments in local research and production capacity
•Leading market position in corn today
•Optimum® AQUAmax™ hybrids launched in 2014
•Pioneer® brand hybrids with the DuPont™ ExpressSun™ trait
•Pioneer MAXIMUS® oilseed rape semi-dwarf hybrids
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20. Global Reach - India
Growth Drivers
•Multi-crop strategy
•Rice – 42 million hectares
•Corn – 12 million hectares
•Mustard and Millet
•Long history and local knowledge
•Hybrid Rice Technology
•Unique route-to-market – Pioneer Pravatka and mobile outreach
•Multi-crop Research Centers with focus on molecular breeding, native traits and drought tolerance
•DuPont Knowledge Center
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21. Global Reach - China
Growth Drivers
•36 million hectare corn market
•Aligned with China’s goals in agriculture
•Modernization and mechanization of Chinese agriculture
•Leading the professionalization of the Chinese seed industry
•Local investments in breeding (established in 1998)
•Industry leading molecular breeding technology center
•State-of-the-art production facilities
•Professional sales channel
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