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2009 DuPont DataBook
2009 DuPont DataBook
2009 DuPont DataBook
2009 dupont
data book
Contents
1 2 4
2009 Summary 2009 At a Glance Corporate Financial Data Corporate Highlights Segment Information Consolidated Income Statements Consolidated Balance Sheets Consolidated Statements of Cash Flows Selected Additional Data DuPont Core Values, Sustainability, DuPont Production System and Six Sigma Industries, Regions and Ingredients DuPont Science & Technology DuPont Applied BioSciences Business Segments Agriculture & Nutrition Electronics & Communications Performance Chemicals Performance Coatings Performance Materials Safety & Protection Pharmaceuticals Major Global Sites and Principal Products Major U.S. Sites and Principal Products Franklin Silva
Manager (302) 774-4162
Karen Fletcher
Vice President (302) 774-0001
Laurie Conslato
Director, Agriculture & Nutrition (302) 774-6088
Jeanmarie Desmond
Director (302) 774-2229
14 15 16 17 18
Pamela Schools
Investor Relations Specialist (302) 774-9870
The DuPont DATA BOOK has been prepared to assist financial analysts, portfolio managers and others in understanding and evaluating the company. This book presents graphics, tabular and other statistical data about the consolidated company and its business segments. The information presented in this book is generally included inor can be calculated frompreviously issued press releases and published company reports on Forms 10-k, 10-Q and 8-K. Dollars are in millions except per share or where otherwise indicated. Most notes to financial statements are not included. This information is only a summary and should be read in conjunction with the companys audited consolidated financial statements and Managements Discussion and Analysis, which is located in the 2009 Form 10K filed with the Securities and Exchange Commission. Use of Non-GAAP Measures As a supplement to DuPonts financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), this data book presents non-GAAP measures which exclude significant items. Non-GAAP measures include underlying pretax operating income (PTOI); underlying earnings and earnings per share before significant items; earnings before interest, taxes, and minority interests (EBIT), as defined by the company; and earnings before interest, taxes, minority interests, depreciation and amortization (EBITDA); fixed cost as percentage of sales. Non-GAAP measures are not a substitute for GAAP results. Significant items represent special charges or credits that are important to an understanding of the companys ongoing operations. The company uses non-GAAP measures to evaluate and manage the companys operations. The company believes that a discussion of results excluding significant items provides a useful analysis of ongoing operations. The determination of significant items may not be comparable to similarly titled measures used by other companies. A reconciliation of non-GAAP measures to GAAP results is provided on the Web at www.dupont.com. For complete details of significant items, see DuPonts quarterly earnings news releases.
39 40
Inside Back Cover Board of Directors and DuPont Office of the Chief Executive
Individual Shareholder Relations: (302) 774-3034 Main Office Number: (302) 774-4994 Fax: (302) 773-2631 Internet: www.dupont.com
The DuPont DATA BOOK is available on the Web at www.dupont.com. The DuPont Oval Logo, DuPont, The miracles of science, and all products denoted with or are trademarks or registered trademarks of E.I. du Pont de Nemours and Company or its affiliates. Zemea is a registered trademark of DuPont Tate & Lyle Bio Products Company LLC, SmartStrand is a registered trademark of Mohawk Industries Inc., Herculex is a registered trademark of Dow AgroSciences LLC, Roundup Ready is a registered trademark of Monsanto, SAI is a registered trademark of Toyota. March 2010
2009 Summary
As we entered 2009, the worlds economies remained in the grip of the global recession and financial crisis. At DuPont, we responded by focusing on what we could control. We put in place directives aimed at maximizing margin, dramatically reducing spending, zero-basing capital expenditures and aggressively reducing working capital. We stayed close to our customers and took advantage of the recessionary environment to respond to their needs for product differentiation. Our actions positioned us well for 2010, ready to meet the challenge of delivering earnings growth despite declining income from Cozaar and Hyzaar pharmaceutical royalties.
> 10 percent
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2005
2009
January
DuPont was named among the worlds leaders in ethics reputation, earning first place in its industry sector and 10th overall among more than 500 multinational companies, according to the annual global Covalence Ethical Ranking Report. DuPont Tate & Lyle Bio Products announced that Kilfrost, the global leader in de- and anti-icing fluids, incorporated Susterra propanediol into its newest de-icing productDFsustain. DuPont and Athenix announced a research collaboration to improve insect control in corn and soybeans. Under the agreement, Pioneer Hi-Bred will use proprietary insectresistance trait genes from Athenix to develop and commercialize next-generation corn and soybean seed products. DuPont installed its largest photovoltaic solar energy facility at its Pioneer Hi-Bred Waimea Research Center in Kauai, Hawaii. The installation is comprised of 1,500 panels made from many DuPont photovoltaic materials.
DuPont introduced Nomex On Demand, an innovative smart fiber that gives firefighters additional protection in temperatures of 250 degrees Fahrenheit and above. The term smart fiber refers to the new materials ability to detect the high temperature and automatically expand, trapping more air for greater thermal insulation. The plant-derived DuPont Zytel 610 nylon resin that debuts on DENSO Corporations new automotive radiator end-tank illustrates the benefits of close collaboration throughout the value chain, and marks the first use of DuPont renewably sourced plastic in mechanical components exposed to the hot, chemically aggressive underhood environment.
DuPont Corian in China won the largest residential project ever in the history of the businessselling approximately 120,000 meters of Corian sheets for the Star of Qingdao Village project. DuPont Crop Protection in India launched three new products that will provide long-lasting answers to insect and weed problems and contribute to the prosperity of rice and sugar cane farmers in the northern belts of the country. The new products include a novel new insect control product, DuPont Coragen, and two new weed-control productsDuPont Londax Power and DuPont Velpar. DuPont commercialized two new product families of photovoltaic (PV) encapsulant sheets. The new DuPont PV5300 Series and DuPont PV5200 Series deliver longterm protection for solar cells. The durable PV encapsulant sheets also contribute to longer life and reduced cost-per-watt.
April
DuPont Apollo Ltd., a subsidiary of DuPont, opened its global thin film photovoltaic research and development center at a ceremony of the Solar Energy Technology Support Center at Hong Kong Science Park in China. DuPont reached a regulatory milestone for its next generation of healthier soybean products. Pioneer Hi-Bred received confirmation from Health Canada and the Canadian Food Inspection Agency that its high oleic soybean trait has been approved for cultivation, food and feed use in Canada. DuPont received registration from the U.S. Environmental Protection Agency for an insect repellent ingredient derived from the catmint plant, a sustainable resource. The new ingredient, Refined Oil of Nepeta cataria, is the first new insect repellent biopesticide to be registered by the EPA in eight years.
June
DuPont announced that its Sorona renewably sourced fiber is available for the commercial carpet industry. DuPont announced the development of its new, proprietary Gen-3 solutionbased organic light emitting diode (OLED) materials technology that can last a record lifetime of more than 1 million hoursequivalent to over 100 years of constant use. DuPont announced the winners of the 21st DuPont Awards for Packaging Innovation making news not only for the awards themselves, but also for hosting online the normally face-to-face gathering of award recipients, customers, jurors and industry experts. Solae introduced SoleCina/Supro Max, a new proprietary blend of vegetable and meat protein ingredient solution that allows food manufacturers to improve the quality of their meat product lines without affecting the taste and appearance of the final products.
February
DuPont introduced mobile wind machines that test the ability of higher-yielding experimental corn hybrids to withstand violent wind storms that cause significant standability issues and subsequent yield loss. DuPont China received The Most Responsible Company in Chinas 30-year of Economic Reform award at Chinas International Forum on corporate social responsibility. DuPont Titanium Technologies in China initiated a strategic partnership with Nippon Paint; a leader in Chinas coating market, to implement a three-year co-marketing program.
March
DuPont doubled production capacity for DuPont Solamet thick film metallization pastes and made key quality improvements at its European electronic materials manufacturing facility in Bristol, U.K.
2
May
DuPont opened a photovoltaic technical center at its global R&D Center in Shanghai, China. The facility contains three labs, and provides integrated research, development and technical support for customers in the PV industry in China.
Photos: (Left) one of the worlds first cellulosic ethanol demonstration facilities in Vonore, Tennessee. (Middle) DuPont Apollo R&D center in Hong Kong. (Right) Registered in over 50 countries, including China, DuPont Rynaxypyr insect control products provide rapid, long-lasting protection of fruit, vegetable, rice and other crops.
July
DuPont and Bayer CropScience entered into a series of long-term business agreements related to key plant biotechnology traits and enabling technologies that will help increase agricultural productivity around the world. DuPont and the Goodyear Tire & Rubber Company collaborated to develop tires made with Kevlar fiber. DuPont received a U.S. Department of Energy grant for a $9 million solar research programpart of the companys overall effort in providing more mainstream solar photovoltaic products for commercial and residential applications. DuPont inaugurated its Innovation & Technology Center in Paulnia to develop new applications for many businesses.
September
DuPont announced the addition of four new seed research centers in developing countries and expanded operations at three existing facilities to develop seed to meet local needs for food productivity. The new research operations extend the research leadership DuPont business Pioneer Hi-Bred has built and bring the total number of Pioneer research centers to nearly 100 worldwide. DuPont and Applied Materials, Inc. announced a collaboration to develop multiple printing technology that is expected to increase the absolute efficiency of crystalline silicon (c-Si) photovoltaic solar cells. By increasing the efficiency and yield of solar cells, PV power can become more cost effective versus other forms of energy. DuPont and SFC Smart Fuel Cell AG received a follow-up order from the U.S. Army for the development of the M-25 fuel cella small, lightweight, portable power supply that can extend soldier mission times to 72 hours or more.
unparalleled science and chemistry leadership, and drives world-class productivityall to intensify customer focus, deliver faster innovation, and foster peerless product stewardship. DuPonts board of directors elected Ellen Kullman Chair, effective December 31.
November
DuPont received approval from the European Commission on a biotech corn product for food, feed, import and processing jointly developed by Pioneer and Dow AgroSciences LLC. Corn products containing the Herculex RW protection trait stacked with Roundup Ready Corn 2 are now permitted for import into the European Union. DuPont and Dow AgroSciences entered into a commercial cross-licensing agreement that will enable the two companies to deliver expanded herbicidetolerant soybean options to farmers in the next decade. DuPont received a $2.25 million grant from the U.S. Department of Energy for a two-year project to develop a solid-state lighting source using low-cost OLED solution-processing manufacturing techniques. DuPont Apollo Ltd. opened its siliconbased thin-film photovoltaic module manufacturing facility in Shenzhen, China.
August
DuPont and Arzeda Corp. announced a technology collaboration to develop new traits to increase agricultural productivity. Under the agreement, Pioneer Hi-Bred will use novel enzymes designed by Arzeda to develop next-generation seed traits in crops such as corn, soybeans, rice, cotton and canola. DuPont announced a multi-phase production expansion for its DuPont Tedlar polyvinyl fluoride product line at its Louisville, KY and Fayetteville, NC sites. This phase represents more than $120 million in investment which increases by more than 50 percent the capacity of monomer and resin used in producing Tedlar films. DuPont introduced Tyvek Vivia, a recyclable solution for wide-format printing that enhances the quality of print graphics. It has the same lightweight strength of traditional DuPont Tyvek, and has a smooth, fabric-like drape that offers tear, puncture, weather and fade resistance.
October
DuPont introduced DuPont Kevlar Advanced Performance (AP) fibers to serve an ongoing need for higher performing materials in industrial applications. The Kevlar AP product line is based on a new technology platform that increases performance compared to standard Kevlar fibers and can result in cost savings and greater design flexibility for manufacturers supplying automotive, construction, oil and gas, ropes, fiber optic cables and utility customers. DuPont received registration approvals in Japan and Brazil for insect control products powered by DuPont Rynaxypyr, a breakthrough insecticide. DuPont formed a new business called DuPont Chemicals & Fluoroproducts (DC&F). The integration expands global market access, leverages DuPonts
December
DuPont Tate & Lyle Bio Products expanded its distribution network in Asia by adding a new distributor, the East Asiatic (Thailand) Public Company Limited (EAC), for the breakthrough product Zemea propanediol. DuPont Performance Coatings in Spain achieved market share gains when it signed a contract with Opel Car Company to supply cathodic electrodeposition paint, which is the first layer applied to cars to protect against corrosion.
Operating Results
Ratios
Employees
Net sales Net income attributable to DuPont Income before significant items Depreciation EBIT EBITDA Cash provided by operating activities Capital expenditures (includes investment in affiliates) Research and development expense 2 Total assets Working capital Total debt Stockholders equity Net income diluted 3 Income before significant items diluted Dividends Market price Year-end close High-low range Book value at year-end Average number of shares (millions) diluted Shares outstanding year-end (millions) Total stockholder return Dividend yield Share price increase (decrease) P/E on income before significant items Dividend payout, as percentage of earnings per share before significant items Return on average stockholders equity before significant items 1 Return on average investors capital before significant items 1 Asset turnover ratio Cash provided by operating activities as a percentage of total debt Debt to total capital 4 Interest coverage ratio Current ratio 4 Exchange loss net of tax Number of employees year-end (thousands)
2009 $26,109 1,755 1,857 1,251 2,578 4,081 4,741 1,432 1,378 $38,185 7,898 11,034 7,215 $1.92 $2.03 $1.64 $33.67 $35.62 $16.05 $7.72 909 904 39.6% 4.9% 33.1% 17 80.8% 14.0% 8.8% 68% 43.0% 59.0% 6.7 1.8 ($114) 58
2008 $ 30,529 2,007 2,533 1,169 2,764 4,208 3,129 2,033 1,393 $ 36,209 5,601 9,650 7,125 $2.20 $2.78 $1.64 $25.30 $52.25 $21.95 $7.63 907 902 (38.9%) 6.5% (42.6%) 9 59.0% 19.6% 12.1% 84% 32.4% 56.0% 10.1 1.6 ($172) 60
1 Amount presented ex-Other Comprehensive Income. 2 Excludes purchased in-process research and development. 3 On December 31, 2006, the company adopted Statement of Financial Accounting Standards No. 158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R). Total assets and stockholders equity were reduced by $2,159 and $1,555, respectively, as a result of such adoption.
4 Includes related assets and/or liabilities classified as held for sale within the Consolidated Balance Sheets.
2007 $ 29,378 2,988 3,043 1,158 4,166 5,537 4,290 1,698 1,338 $ 34,131 4,619 7,325 11,136 $3.22 $3.28 $1.52 $44.09 $53.90 $42.25 $12.12 925 899 (6.4%) 3.4% (9.5%) 13 46.3% 25.6% 16.2% 86% 58.6% 38.8% 11.0 1.5 ($31) 60
2006 $ 27,421 3,148 2,685 1,157 3,804 5,188 3,736 1,563 1,302 $ 31,777 3 4,930 7,530 9,422 3 $3.38 $2.88 $1.48 $48.71 $49.68 $38.52 $9.96 929 922 18.1% 3.0% 14.6% 17 51.4% 25.7% 15.3% 86% 49.6% 43.3% 9.1 1.6 ($30) 59
2005 $ 26,639 2,056 2,332 1,128 4,044 5,402 2,542 1,406 1,336 $ 33,291 4,986 8,180 8,962 $2.07 $2.34 $1.46 $42.50 $54.90 $37.60 $9.49 989 920 (10.4%) 3.4% (13.4%) 18 62.4% 19.6% 12.4% 80% 31.1% 46.4% 11.1 1.7 ($38) 60
$1,000
2005
2006
2007
2008
2009
2005
2006
2007
2008
2009
Share Repurchase
Dividends
$25
$20
$15
$10
$5
$0 Cash 12/31/04 Cash from Operations Asset Net Change Acquisitions PPE & Dividends Stock in Sales Investment Repurchase Borrowings in Affiliates Other Cash 12/31/09
1 Average annual dividend yield based on year-end stock price over the period shown. 2 Compounded annual growth rate over the period shown. 3 Includes reinvestment of dividends.
2009 Segment Sales 1 Agriculture & Nutrition Electronics & Communications Performance Chemicals Performance Coatings Performance Materials Safety & Protection Other Total segment sales Elimination of transfers Net sales Segment Pretax Operating Income Before Significant Items Agriculture & Nutrition Electronics & Communications Performance Chemicals Performance Coatings Performance Materials Safety & Protection Pharmaceuticals Other Total segment pretax operating income before significant items Exchange gains (losses) Corporate expenses and interest Income before significant items, income taxes and minority interests Net significant items 2 Income before income taxes and minority interests
1 Segment sales include transfers. 2 For complete details of significant items, see DuPonts quarterly earnings news releases.
2008 $ 7,952 2,194 6,035 4,361 6,425 3,733 160 30,860 (331) $30,529 $ 1,109 288 743 201 438 758 1,025 (150) 4,412 (255) (1,004) 3,153 (762) $ 2,391
2007 $ 6,842 2,132 5,836 4,348 6,630 3,731 178 29,697 (319) $29,378 $ 894 314 921 366 811 1,032 949 (184) 5,103 (85) (1,056) 3,962 (219) $ 3,743
$ 8,287 1,918 4,964 3,429 4,768 2,811 158 26,335 (226) $26,109 $ 1,223 124 601 84 295 305 1,037 (169) 3,500 (205) (951) 2,344 (160) $ 2,184
2009 Equity Affiliate Analysis Agriculture & Nutrition Electronics & Communications Performance Chemicals Performance Coatings Performance Materials Safety & Protection Other Total segments $ 47 1 9 1 37 26 (32) $ 89
2009
1st 2nd 3rd 4th Full Yr. 1st 2nd
2008
3rd 4th Full Yr.
Segment Sales 1 Agriculture & Nutrition $ 3,062 $ 2,613 $ 1,244 $ 1,368 $ 8,287 Electronics & Communications 365 429 542 582 1,918 Performance Chemicals 1,070 1,243 1,331 1,320 4,964 Performance Coatings 732 840 882 975 3,429 Performance Materials 942 1,087 1,303 1,436 4,768 Safety & Protection 718 664 670 759 2,811 Other 28 31 54 45 158 Total segment sales $ 6,917 $ 6,907 $ 6,026 $ 6,485 $26,335 Segment Pretax Operating Income Before Significant Items Agriculture & Nutrition $ 852 $ 581 $ (113) $ (97) $ 1,223 Electronics & Communications (34) 20 77 61 124 Performance Chemicals 44 142 207 208 601 Performance Coatings (75) 31 58 70 84 Performance Materials (146) 37 230 174 295 Safety & Protection 64 48 58 135 305 Pharmaceuticals 252 272 266 247 1,037 Other (44) (44) (26) (55) (169) Total segment pretax operating income before significant items 913 1,087 757 743 3,500 Exchange gains and losses 70 (144) (128) (3) (205) Corporate expenses and interest (234) (256) (238) (223) (951) Income before significant items 2 749 687 391 517 2,344 Pretax Impact of Significant Items 2 Hurricane charges Restructuring charge Restructuring adjustment Hurricane insurance proceeds and adjustments Net impact of significant items Income before income taxes 0 $ 749 (340) 75 50 (215) $ 472 0 $ 391 55 (340) 130
$ 2,883 $ 2,541 $ 1,303 $ 1,225 $ 7,952 545 582 590 477 2,194 1,495 1,659 1,674 1,207 6,035 1,111 1,242 1,103 905 4,361 1,713 1,810 1,708 1,194 6,425 885 1,041 973 834 3,733 40 44 45 31 160 $ 8,672 $ 8,919 $ 7,396 $ 5,873 $30,860
$ 786 83 236 93 219 225 235 (26) 1,851 (155) (226) 1,470
$ 504 90 255 128 223 246 265 1 1,712 (29) (271) 1,412
$ (17) $ (164) $ 1,109 86 29 288 238 14 743 61 (81) 201 125 (129) 438 200 87 758 260 265 1,025 (44) (81) (150) 909 45 (257) 697 (227) (60) (116) (250) (426) (535) 4,412 (255) (1,004) 3,153 (227) (535)
0 0 $ 1,470 $ 1,412
2009
1st 2nd 3rd 4th Full Yr. 1st 2nd
2008
3rd 4th Full Yr.
Earnings Per Share of Common Stock Diluted 3 Income (loss) before significant items Significant items Income (loss)
1 Segment sales include transfers. 2 For complete details of significant items, see DuPonts quarterly earnings news releases. 3 Earnings per share for the year does not equal to sum of quarterly earnings per share due to changes in average share calculations.
For the year ended December 31 Net sales Other income, net 1 Total Cost of goods sold and other operating charges Selling, general and administrative expenses Research and development expense Interest expense Employee separation/asset related charges, net Separation activities Textiles & Interiors Total Income before income taxes Provision for income taxes Net Income Less: Net income (loss) attributable to noncontrolling interests Net income attributable to DuPont Diluted earnings per share of common stock
1 Other income, net: Cozaar/Hyzaar licensing income Royalty income Interest income Equity in earnings (losses) of affiliates Net gains on sales of assets Net exchange gains (losses) Miscellaneous income and expenses net Total other income, net
2009 $26,109 1,219 27,328 19,708 3,440 1,378 408 210 25,144 2,184 415 1,769 14 $ 1,755 $ 1.92
$1,032 127 91 99 63 (218) 25 $ 1,219
2008 $30,529 1,307 31,836 23,548 3,593 1,393 376 535 29,445 2,391 381 2,010 3 2,007 $ 2.20
$1,019 111 138 81 40 (219) 137 $ 1,307
2007 $29,378 1,275 30,653 21,746 3,396 1,338 430 26,910 3,743 748 2,995 7 2,988 $ 3.22
$943 125 154 (130) 126 (65) 122 $ 1,275
2006 $27,421 1,561 28,982 20,636 3,255 1,302 460 25,653 3,329 196 3,133 (15) 3,148 $ 3.38
$815 120 129 50 78 16 353 $ 1,561
2005 $26,639 1,852 28,491 19,878 3,258 1,336 518 (62) 24,928 3,563 1,470 2,093 37 2,056 $ 2.07
$747 130 227 108 82 423 135 $ 1,852
December 31 Assets Current assets Cash and cash equivalents Marketable debt securities Accounts and notes receivable, net Inventories Prepaid expenses Income taxes Total current assets Property, plant and equipment Less: Accumulated depreciation Net property, plant and equipment Goodwill Other intangible assets Investment in affiliates Other assets Total Liabilities and Stockholders Equity Current liabilities Accounts payable Short-term borrowings and capital lease obligations Income taxes Other accrued liabilities Total current liabilities Long-term borrowings and capital lease obligations Other liabilities Deferred income taxes Total liabilities Total DuPont stockholders equity Noncontrolling interests Total equity Total
2009
2008
2007
2006
2005
$ 4,021 2,116 5,030 5,380 129 612 17,288 28,915 17,821 11,094 2,137 2,552 1,014 4,100 $38,185
$ 3,645 59 5,140 5,681 143 643 15,311 27,954 16,800 11,154 2,135 2,710 844 4,055 $36,209
$ 1,305 131 5,683 5,278 199 564 13,160 26,593 15,733 10,860 2,074 2,856 818 4,363 $34,131
$ 1,814 79 5,198 4,941 182 656 12,870 25,719 15,221 10,498 2,108 2,479 803 3,019 $31,7771
$ 1,736 115 4,801 4,743 199 828 12,422 24,963 14,654 10,309 2,087 2,684 844 4,945 $33,291
$ 3,542 1,506 154 4,188 9,390 9,528 11,490 126 30,534 7,215 436 7,651 $38,185
$ 3,128 2,012 110 4,460 9,710 7,638 11,169 140 28,657 7,125 427 7,552 $36,209
$ 3,172 1,370 176 3,823 8,541 5,955 7,255 802 22,553 11,136 442 11,578 $34,131
$ 2,711 1,517 178 3,534 7,940 6,013 7,692 269 21,914 9,4221 441 9,8631 $31,777
$ 2,670 1,397 294 3,075 7,436 6,783 8,441 1,179 23,839 8,962 490 9,452 $33,291
1 On December 31, 2006, the company adopted Statement of Financial Accounting Standards No. 158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R). Total assets and stockholders equity were reduced by $2,159 and $1,555, respectively, as a result of such adoption.
For the year ended December 31 Operating activities Net income Adjustments to reconcile net income to cash provided by operating activities: Depreciation Amortization of intangible assets Other noncash charges and credits, net Separation activitites Textiles & Interiors Contributions to pension plans (Increase) decrease in operating assets: Accounts and notes receivable Inventories and other operating assets Increase (decrease) in operating liabilities: Accounts payable and other operating liabilities Accrued interest and income taxes Cash provided by operating activities Investing activities Purchases of property, plant and equipment Investments in affiliates Payments for businesses net of cash acquired Proceeds from sale of assets, net of cash sold Net (increase) decrease in short-term financial instruments Forward exchange contract settlements Other investing activities, net Cash (used for) provided by investing activities Financing activities Dividends paid to stockholders Net increase (decrease) in short-term (less than 90 days) borrowings Long-term and other borrowings: Receipts Payments Repurchase of common stock Proceeds from exercise of stock options Proceeds from termination of interest rate swap Other financing activities, net Cash (used for) provided by financing activities Effect of exchange rate changes on cash Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental cash flow information: Cash paid during the year for Interest, net of amounts capitalized Taxes
2009
2008
2007
2006
2005
$ 1,769
$ 2,010
$ 2,995
$ 3,133
$ 2,093
1,251 252 976 (306) 69 481 (115) 364 4,741 (1,308) (124) (13) 91 (2,016) (927) (1) (4,298) (1,492) (317)
1,169 275 814 (252) 488 (663) (515) (197) 3,129 (1,978) (55) (144) 50 40 508 (31) (1,610) (1,496) (891)
1,158 213 358 (277) (214) (267) 470 (146) 4,290 (1,585) (113) (13) 251 (39) (285) 34 (1,750) (1,409) 1,117
1,157 227 303 (280) (194) (61) 335 (884) 3,736 (1,532) (31) (60) 148 37 45 48 (1,345) (1,378) (263)
1,128 230 7 (62) (1,253) (74) 6 (633) 1,100 2,542 (1,340) (66) (206) 312 36 653 9 (602) (1,439) (494)
4,311 (2,045) (3,530) 359 (13) (2,851) (722) $(1,633) 3,369 1,736
$ 403 63
$ 336 609
$ 527 795
$ 295 899
$ 479 355
10
1 Principally reflects the benefit of non-taxable exchange gains resulting from remeasurement of foreign currency denominated monetary assets and liabilities. 2 Reflects the tax impact associated with the repatriation of $9.1 billion under AJCA.
2009 As a percentage of net sales: Cost of goods sold and other operating charges Selling, general and administrative expenses Research and development expenses Income before significant items Cash provided by operating activities
2008
2007
2006
2005
75% 13 5 7 18 2009
Selected Additional Data Annual percent change in net sales versus prior year* Portion due to U.S. dollar selling prices Portion due to volume and mix* Average manufacturing capacity utilization
* Percentage changes are calculated using sales adjusted to exclude current-year sales from acquisitions when there are no comparable prior-year sales, and to exclude prior-year sales of businesses that have been divested. Percentage changes in 2005 is adjusted for changes in ownership of DuPont Dow Elastomers LLC.
11
2009 Financial Results by Quarter Net sales 1st 2nd 3rd 4th Total Income before significant items 1st 2nd 3rd 4th Total Earnings before significant items per share of common stock diluted 1 1st 2nd 3rd 4th Total Fixed costs as a percentage of sales 1st 2nd 3rd 4th Full Year
1 Earnings per share for the year may not equal sum of quarterly earnings per share due to changes in average share calculations.
2008
2007
$ 6,871 6,858 5,961 6,419 $26,109 $ 488 558 409 402 $ 1,857 $ 0.54 0.61 0.45 0.44 $ 2.03 43.4% 43.1% 48.8% 50.2% 46.2%
$ 8,575 8,837 7,297 5,820 $30,529 $1,191 1,078 513 (249) $ 2,533 $1.31 1.18 0.56 (0.28) $ 2.78 35.9% 36.6% 42.7% 54.1% 41.2%
$ 7,845 7,875 6,675 6,983 $29,378 $997 972 552 522 $ 3,043 $ 1.07 1.04 0.59 0.57 $ 3.27 37.7% 38.6% 43.8% 44.7% 41.0%
2009 22.1%
2008 20.4%
2007 23.9%
Net Sales Outside the United States as a Percentage of Sales Agriculture & Nutrition Electronics & Communications Performance Chemicals Performance Coatings Performance Materials Safety & Protection Total 2009 54% 82% 59% 77% 67% 57% 62% 2008 61% 81% 54% 76% 68% 57% 64% 2007 59% 79% 53% 73% 64% 53% 62%
Exports from the United States Net sales (dollars in millions) As a percentage of net sales 2009 $ 5,402 21% 2008 $ 6,469 21% 2007 $ 6,173 21%
12
10
115
105
15
100
20
95
2004
2005
2006
2007
2008
2009
** Prices in local currency terms (adjusted for currency and history excludes Textiles & Interiors).
6 2 5 10 (2)
5 2 2 7 1
5 3 (2) (3) 1
1 Price and volume changes are as a percentage of net sales excluding Textiles & Interiors. Volume percentage changes are calculated using sales adjusted to exclude current-year sales from acquisitions when there are no comparable prior-year sales and to exclude prior-year sales of businesses that have been divested. 2 Excludes portfolio changes.
Local Price and Variable Costs Impact year over year on an after tax basis
(dollars in millions)
2009
1st 2nd 3rd 4th
1st 2nd
2008
3rd 4th
335 (257) 78
503 (428) 75
13
DuPont Core Values, Sustainability, DuPont Production System, and Six Sigma
Throughout its history, DuPont has been guided by a welldefined set of core values that have remained constant as the company grew from its origins as an explosives company to the global science company it is today. Safety and health, environmental stewardship, high ethical standards and respect for people remain our values. They are practiced everywhere the company does business. All our operations around the world are held to the same standards.
Sustainable Growth
DuPont is committed to creating shareholder and societal value while decreasing the environmental impact along our supply chains. In 2006, we announced our 2015 Sustainability goals and we continue to report progress against the goals. The following are highlights of progress against some of the goals. The complete information is available on our website at: http://www2.dupont.com/Sustainability/en_US/ Greenhouse Gas EmissionsBetween 1990 and 2003, DuPont reduced its global greenhouse gas emissions, measured by CO2 equivalents, 72 percent. By 2015, we will further reduce greenhouse gas emissions at least 15 percent (from a base year of 2004). Progress at year end 2008: down 8.5% versus 2004.
1990
1996
2000
2004
2008
Reflects a 60% reduction since 1990. Prior to the INVISTA separation, DuPont achieved a 72% reduction below the original 1990 baseline. Note: data adjusted for 19902000 years to reflect INVISTA divestiture, and 2004 baseline and subsequent years adjusted to reflect all acquisitions and divestitures.
Six Sigma
2009 was the tenth full year of implementation of DuPont Six Sigma. We have trained over 29,000 employees as Master Black Belts, Black Belts or Green Belts.
Air CarcinogensSince 1990, DuPont has reduced its global carcinogen emissions 92 percent. By 2015, we will further reduce these emissions at least 50 percent (from a base year of 2004) bringing total reductions since 1990 to 96 percent. Progress at year end 2008: down 50% versus 2004. R&D OpportunitiesBy 2015 DuPont will double its investment in R&D programs with direct, quantifiable environmental benefits for our customers and consumers. Progress at year end 2008: $570 million invested in 2008 versus goal of $640 million by 2015. Safer ProductsBy 2015 we will introduce at least 1,000 new products or services that make people safer. Progress at year end 2008: introduced 371. Non-depletable ResourcesBy 2015 DuPont will nearly double revenues from non-depletable resources to at least $8 billion. Progress at year end 2008: $6.8 billion.
14
Benefits
82% Reduced Costs Opportunities for Increased Revenue 18%
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2009 Net Sales % of Total $ 9,814 5,302 1,863 2,209 2,980 3,182 759 $26,109 8,025 38% 20% 7% 9% 11% 12% 3% 100% 31%
2008 Net Sales % of Total $11,091 7,146 2,340 2,583 2,900 3,562 907 $30,529 8,802 36% 23% 8% 9% 9% 12% 3% 100% 29%
Non-
rical
Food
2007 Net Sales $11,277 6,868 1,961 2,520 2,657 3,132 963 $29,378 7,750 % of Total 38% 23% 7% 9% 9% 11% 3% 100% 26%
United States Developed EMEA Emerging EMEA* Developed Asia Emerging Asia* Latin America* Canada Total Total Net Sales in Emerging Markets*
*For a list of countries comprising Developed and Emerging Markets, see the Companys Investor Center web site under Related Financial Information.
Packaging and Logistics Contract Manufacturing and Other Top Purchased Energy and Raw Materials Other Purchased Energy and Raw Materials
on m l k g j i h f b c d e
Other *
rel
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15
Uma Chowdhry Senior Vice President and Chief Science and Technology Officer
In 2009 DuPont had a record breaking year for innovation, as illustrated by our metrics. Patents filed and granted: In 2009, DuPont scientists filed more than 2,000 patent applications in the U.S., the highest number in our long history of innovation and up almost 8% over 2008. Patents granted by the USPTO increased by almost 20% to 592, the 4th highest total in company history. New product launches: DuPont commercialized 1,451 new products or new product applications in 2009, an increase of 60% from the year 2008 and an increase of 21% from 2007. Over the past 5 years, DuPont has launched over 6,000 new products and applications. Sales from new products: DuPont revenue from products launched in the previous five years was almost $10 billion in 2009. These recently launched products accounted for 39% percent of the companys revenue in 2009, up from 24 percent in 2001. 2009 Innovation Metrics ($ in millions)
Metric Full Year 2009
~15%
~50%
~12%
~14% ~9%
Total U.S. patent applications U.S. patents granted New products commercialized Revenue from new products % Revenue from new products Total R&D expense R&D as % of revenue
39%
35%
30%
2009
Key Capabilities
Plant genetics Plant breeding Crop chemistry Nutrition science Genetic engineering Metabolic engineering Proteomics Microbiology Molecular biology Functional genomics Materials science Particle science and dispersion Colorants and color measurement Fluorine chemistry Photo active materials Precision patterning Nanoscale science and engineering Surface and colloidal science Polymer science and engineering Catalysis Organometallic chemistry Process development and engineering World-class safety technology
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Key markets include: transportation fuels, textiles, carpets, personal care, human nutrition, aquaculture and medical devices. BioMaterials
DuPont Sorona polymer growth accelerated during 2009 as DuPont brought additional polymer capacity on line in both Kinston, NC and in China via its partnership with Zhangjiagang Glory Chemical Industry Co., Ltd. The additional volume helped support the strong growth in apparel, flooring and automotive applications. Sorona offers superior softness, dyeability, and stain resistance in addition to renewability. The demand for SmartStrand with DuPont Sorona renewably sourced polymer, a line of residential carpeting from Mohawk Industries, grew through 2009. The unique performance characteristics of fibers made from Sorona polymer were further validated by the U.S. Federal Trade Commission when it granted the petition for a new sub-generic classification for Sorona PTT fibers in March 2009. The new generic name, triexta, differentiates Sorona from other fiber types at the consumer level. In addition, Sorona was introduced into commercial carpet applications at the June 2009 Neocon Trade Fair, and work continues with several carpet mills to develop offerings for broadloom and carpet tile applications. In automotive, Toyota announced that it adopted Sorona for use in the ceiling surface skin, sun visor and pillar garnish for its new SAI compact luxury car model in Japan. Sorona was also adopted for optional floor mats sold under the Toyota brand. Customer interest in Bio-PDO remains high across the fluids and polymers businesses. ITWC of Malcolm, Iowa introduced Susterra propanediol into the polyurethanes industry as a new line of bio-content based polyester polyols and elastomers. Kilfrost, Inc. of Haltwhistle, UK introduced TKS Sustain, an in-flight deicing fluid for private planes, based upon Susterra. Propanediol was also approved in September for use in engine coolants by ASTM International. In personal care and cosmetics, Zemea propanediol has been globally adopted in over 150 products ranging from skin and hair care to deodorants. Zemea has also been certified by the Natural Products Association.
BioFuels
The DuPont Danisco Cellulosic Ethanol, LLC (DDCE) joint venture continued step change improvements in technology development aimed at creating the lowest cost and capitalintensive technology package for cellulosic ethanol production. In 2009, the JV completed construction of its 250,000 gallon per year demonstration pilot facility in Vonore, Tenn. The facility is designed to develop basic data for commercial processes based on corn cob or switchgrass feedstocks. The next step for the JV will be to move toward commercialization. In 2009, DuPont completed the formation of Butamax Advanced Biofuels, LLC, a joint venture with BP to commercialize biobutanol. The JV is headquartered in Wilmington, DE. Construction of the demonstration facility at Hull in the United Kingdom is underway and will be completed 3Q 2010. Biobutanol is an advanced biofuel which is fungible with existing gasoline infrastructure and can be used to meet government goals in renewable fuels.
BioSpecialties
The Omega-3 program has progressed with its first initial product launch into the nutritional supplements market via a major U.S. nutritional supplement company. The next step in the Omega-3 business is to advance the commercialization including initial trials of our Omega-3 yeast product in aquaculture, creating a new class of premium fish for consumers that will be sustainably farmed and naturally high in Omega-3s.
BioMedical
The DuPont BioMedical initiative is capitalizing on the companys materials expertise to serve the medical community by developing products that are safer, more effective, and easier to use than current alternatives. Products in development include surgical sealants and adhesion barriers.
17
Growth Strategies
Accelerating growth in a strong Ag market environment Advancing and commercializing new technologies
James C. Collins President, DuPont Crop Protection Paul E. Schickler President, Pioneer Hi-Bred International, Inc. Craig F. Binetti President, Nutrition & Health and Applied BioSciences
Expanding global leadership position with rapid growth in emerging markets Capturing value through differentiated distribution Continuing gains from productivity improvements
By Major Industry
By Region
North America* 50% Seeds 56% Asia Pacific 10% Food Ingredients 15% Chemicals 29% Europe** 23% Latin America 17%
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Key Capabilities
Plant genetics Biotechnology Crop chemistry Nutrition science Protein formulation
Core Markets
Production agriculture Food processing chemicals
Innovation Low dose rate, highly effective pest control agent in the Rynaxypyr family of insecticides Low dose rate, highly effective pest control agent in the Rynaxypyr family of insecticides Provides non-repellent residual insect control using Meta-Active technology for targeted pest control SU soluble granule blend with safener technology SU soluble granule blend with safener technology First proprietary Nicosulfuron liquid formulation with a built in adjuvant system Stacked rootworm and insect protection available for stacked resistance High yielding soybean varieties Soy protein ingredient technology for nutrition bars Soy protein ingredient technology for beverages
Markets Served Japan fruit tree Brazil soybean, sugarcane and vegetables Professional pest control
Corn Herbicides Steadfast Q Accent Q Ritmic Pioneer brand corn with Herculex RW rootworm protection and Herculex XTRA insect protection Pioneer brand Y series soybeans Supro 430 isolated soy protein
North American corn North American corn France Corn North American corn
Global food Global food Global food Global food processing Global food processing Global research, academia Global C&D consumers
BAX System Real-time PCR assay for Vibrio Next-day DNA test for three pathogenic species in seafood Real-time PCR assay for E. coli O157:H7 Same-day DNA test for ground beef, trim and produce DuPont PCR Reagent Kits SoleCina
Tablets and reagents to simplify PCR in molecular bio labs Affordable meat/soy nutrition
Major Markets
Major Plants
Significant Competitors
Cotton herbicides: Staple Staple LX Potato herbicide: Matrix Sugar beet herbicides: Debut Safari Upbeet Venzar Sugarcane herbicides: Advance Velpar K Pre-emergence weed control LaPorte, TX Diuron Hexazinone Manati, PR Cernay, France 2-Carbomethoxy 6-methylbenzenesulfonyl chloride Cernay, France Aminodimethoxypyrimidine Lerma, Mexico Pyrithiobac sodium
20
Major Markets
Major Plants
Significant Competitors
Fungicides
Acanto, Acanto Prima, Stinger Aproach Prima Curzate Equation Famoxate Flusilazole Kocide Manzate Nustar Punch Talendo Talius Tanos Plant disease control Valdosta, GA Houston, TX Barranquilla, Colombia Cernay, France Asturias, Spain Bangpoo, Thailand Carbon bisulfide Carbon monoxide Chlorine Copper hydrofide EDA Ethylene diamine Phenyl triazole Sodium triazole Triphenyltinhydroxide BASF Bayer Dow Agrosciences Mahkteshim Agan Syngenta
Insecticides
Acelepryn Advion Altacor Ammate Arilon Asana Avaunt Coragen Dermacor Ferterra Lannate Premio Prevathon Rynaxypyr Steward Vydate Residual action insect control in specialty food production and selected broad acre crop applications, as well as professional pest control and lawn care Mobile, AL LaPorte, TX Barra Mansa, Brazil Cernay, France Savli, India Pasaruan, Indonesia Lerma, Mexico Cabuyao, Philippines Lung Tan, Taiwan Bangpoo, Thailand Acetaldehyde oxime Ammonia Caustic soda m-Cresol Cyclohexanone Ethanol Methanol Methyl mercaptan Monochlorobenzene Monoethylamine Monomethylformamide Phosphorus pentachloride Trichloroacetaldehyde BASF Bayer Dow Agrosciences Mahkteshim Agan Syngenta
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Paper industry
Soybean flake
22
Growth Strategies
Aggressively grow in photovoltaics, displays, consumer electronics and advanced printing Expand photovoltaic emerging technologies, new product introductions and materials capacity
David B. Miller President DuPont Electronics & Communications
$300
$200
$100
Printing & Packaging Materials 30% Electronic Materials 28% Photovoltaic Materials 24% High Performance Films and Laminates 11% Display Materials 7%
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Key Capabilities
Polymer chemistry Photopolymers Inorganic materials Precision patterning Application development
Core Markets
Packaging graphics Photovoltaic cells and modules Electronic components Flexible and rigid printed circuit board fabrication Plasma and LCD displays Semiconductor manufacturing Home, office and large-format digital inkjet printers Product/brand authentication and security
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www2.dupont.com/Electronics/en_US/ www2.dupont.com/Packaging_and_Graphic_Arts/en_US/ www2.dupont.com/Photovoltaics/en_US/index.html Artistri inks for digital textile printing Birox thick-film resistor compositions CoppeReady chemical mechanical planarization slurries CuSolve post-etch residue removers Cyrel flexographic printing plate systems Cyrel FAST thermal platemaking systems Cyrel round seamless photopolymer sleeves DuPont inks for printer OEMs Fodel 8G thick-film paste Green Tape low-temperature co-fired ceramics Holographic optical elements for labels and tags ImageMaster photo-tool systems Interra planar embedded capacitor laminate Izon anti-counterfeiting devices Kapton polyimide film Luxprint electroluminescent compositions Mazin colloidal silica slurry Microlithographic polymer films Microlux polyimide laminates MicroPlanar chemical mechanical planarization slurries Oasis composite film PlasmaSolve post-etch residue removers Polymers for semiconductor photoresists Posistrip photoresist removers Pyralin polyimide coatings Pyralux flexible laminates, sheet adhesives, and films Riston dry film photoresists Solamet photovoltaic metallizations Specialty Colorants and Polymers Vertak Bonding Technology for LCD Displays Syton colloidal silica slurry Tedlar PVF film Thick-film conductor and resistor compositions Automotive electronics Biosensors Electronic components Electronic insulation Home, office and large-format digital ink-jet printers LCD and plasma displays Packaging graphics Photovoltaic cells and modules Plasma and LCD displays Printed circuit board fabrication Product/brand authentication and security Semiconductor fabrication and packaging Textile printing Wafer polishing Bayport, TX Bristol, United Kingdom Circleville, OH Dayton, OH Dongguan, China Fayetteville, NC Fort Madison, IA Gumi, Korea Hayward, CA Hitachi, Japan Hsinchu, Taiwan Logan, UT Louisville, KY Manati, PR Mizushima, Japan Neu Isenburg, Germany Parlin, NJ Research Triangle Park, NC Rochester, NY Ruabon, United Kingdom Santa Barbara, CA Shenzhen, China Taoyuan, Taiwan Tokai, Japan Tonawanda, NY Towanda, PA Toyohashi, Japan Acrylic monomers Black and Color Pigments Block Copolymers Color Dyes Colloidal silica Copper Difluoroethane DMAC Hydroxylamine Monomers and Polymer Resins Polymers Oxydianiline PET film Plastic films Polyester film Polymer films Precious metals Pyromellitic dianhydride TiO2 3M Air Products Arisawa Asahi Chemical Cabot Corporation Cabot Microelectronics Cheil Denka Eternal Chemical Ferro Flint Group Fujifilm Heraeus Hitachi Chemical Kaneka Kao LG Chemical MacDermid Maruzen Nippon Steel Noritake Sensient SKC Kolon Tianwei Solar Films Tokyo Okha Kogyo Toray Ube
25
Growth Strategies
Continue gains from productivity improvements enhancing ability to compete and grow in any region Further globalize operations and accelerate growth in emerging markets
Gary W. Spitzer President DuPont Chemicals & Fluoroproducts Richard C. Olson President DuPont Titanium Technologies
Fulfill customer needs via supply and value chain excellence Target innovation, focusing on low cost processes, sustainable technologies and high growth opportunities
By Region
26
Key Capabilities
Dispersion and particles technologies Fluorine chemistry Protective chemicals Global scale and scope World-class safety reputation
Core Markets
Architectural coatings HVAC refrigeration Chemical processing industries Plastics Paper
27
www2.dupont.com/Directories/en_US/Products_Services_Index/Chemicals/Cleaners_Disinfectants.html www2.dupont.com/Clean_Technologies/en_US/products/sulfur/sulfuric_acid.html Acrylic esters Ammonia Benzene Caustic Chloroform Chlorine Difluoroethane Formalin Fluorspar HCFC 22 Hexafluoropropyleneoxide Hydrochlorofluorocarbon Hydrofluoric acid Hydrogen Hydrogen cyanide Iodine Isophthalic acid Ketones Methane Methanol Natural gas Nitric acid Oleum Perchloroethylene Petroleum revining Sodium chloride Sulfur Tetrafluoroethylene Titanium tetrachloride Toluene VCM 3M Air Products Arkema Asahi Glass BASF Bayer Clariant Chemtura Cytec Daikin Dyneon/3M Degussa FMC General Chemical Honeywell INEOS KDK Rhodia Solexis Solvay/Ausimont Whitford Worldwide
28
Growth Strategies
Continue to drive cost and working capital productivity Further localize operations and accelerate growth in emerging markets Deliver coatings and service solutions to customers
Terry Caloghiris President DuPont Performance Coatings
$300
$200
$100
North America* 26% Asia Pacific 12% Europe** 46% Latin America 16%
*Includes U.S. and Canada **Includes Europe, Middle East and Africa
29
Key Capabilities
Dispersion and particle technologies Color management Coatings applications Manufacturing excellence Global scale and scope
Core Markets
Automotive OEM Collision repair Industrial coatings Transportation
Innovation Eco-Concept Consolidated process, improved emissions, and reduced cost Environmentally friendly waterborne basecoat, enhancing productivity, application and appearance Simplified system to enhance mixing efficiency and accuracy Enables powder coatings to be used with heat sensitive substrates Chrome replacement Unique catalyst technology to enable low temperature cure Premium quality and appearance with higher throughput
Markets Served Auto OEM Auto OEM Auto refinish/EMEA Auto refinish Furniture, kitchen, garage, utility cabinetry Auto wheels Auto, agriculture, construction, and general industry Refinish Refinish, emerging markets Industrial powder
Lucite Refinish Collision System An economy collision system for emerging markets Alesta ZeroZinc Powder Primer A powder primer free of zinc and heavy metals
Principal Products
Major Markets
Major Plants
Significant Competitors
Aerospace Automotive Collision repair Marine Transportation Industrial coatings Pipe coatings General industrial applications
Fort Madison, IA Mount Clemens, MI Front Royal, VA Houston, TX Hilliard, OH Tlalnepantla, Mexico Sao Paulo, Brazil Valencia, Venezuela Darlington, United Kingdom Guntramsdorf, Austria Mechelen, Belgium Wuppertal, Germany Landshut, Germany Montbrison, France Vaestervik, Sweden Jiading, China Changchun, China
Acrylic monomers Aliphatic and aromatic hydrocarbon solvents Organic pigments Polyurethane Epoxy/Polyester resin Polyester Alkyd resin
Growth Strategies
Drive continued productivity initiatives Deliver innovative products and market-focused solutions Leverage global capabilities and value chain expertise
Diane H. Gulyas President DuPont Performance Polymers William J. Harvey President DuPont Packaging & Industrial Polymers
By Major Industry
By Region
Transportation 38% Paper and Plastics 16% Packaging 15% Electrical and Electronics 11% Construction 9% Personal and Healthcare 6% Other 5%
*Includes U.S. and Canada **Includes Europe, Middle East and Africa
North America* 35% Asia Pacific 26% Europe** 31% Latin America 8%
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Key Capabilities
Polymer science Applications development Materials processing
Core Markets
Automotive Packaging Electrical/Electronics Construction Food service Consumer durables
Innovation New fitment and connector technology for increased reliability and superior evacuation Blow moldable glass reinforced PBT for automotive airducts New non-halogen FR HTN for SMT connector applications
Markets Served Fountain beverage dispensing systems Automotive Electrical/Automotive Automotive and Industrial/Consumer Automotive and Industrial/Consumer Electronic/Industrial Automotive Automotive, Electronics/Electrical, Industrial/Consumer Construction Packaging Packaging Construction Packaging/Industrial Industrial Construction Transportation Semiconductor
Hytrel RS polyester elastomer New, renewably sourced alternative to conventional Hytrel with comparable properties, based on food bio-mass sources. Zytel RS Nylon Resins Rynite PET Polyester Resins Zytel Nylon Resins
New renewably sourced nylon products based on the castor plant. Multiple reinforced and unreinforced grades available in 2 different polymer families New non-halogen flame retardant PET resin for office automation applications New product which has been reformulated for improved mold deposit for Air Intake Manifolds New products based on renewable sources with equivalent or better functionality vs. petroleum based. Multiple reinforced, unreinforced and toughened grades available commercially Partially renewably sourced, spill resistant breathable layer for carpet padding Polymer additives improve the performance of bio-based polylactic acid (PLA) packaging in food contact applications Several new pealable sealant resins for easy open food packaging A range of resins and sheets utilized as encapsulants in photovoltaic applications Modified polyolefins and other polymers, providing permanent, anti-static dissipation for a variety of demanding applications New product for banners as a replacement for PVC providing better adhesion, drape and printability Terpolymer additive that reduces cost of paving materials while maintaining performance New ethylene acrylic elastomers that deliver improved productivity and better low temperature performance New offerings to withstand demanding chemical environments in semiconductor fabrication
Sorona EP Resins
Appeel Resins DuPont PV Series products Entira Additives Entira Coat Entira Bond Vamac Elastomers Kalrez perfluoroelastomer parts
Adhesives Automotive Construction Cosmetic/personal care packaging Food and beverage packaging Food service and bulk foods Industrial packaging Leisure/sporting goods Paving Pumpable liquid food packaging Textiles Transportation Wire and cable
Fayetteville, NC LaPorte, TX Orange, TX Victoria, TX Parkersburg, WV Sarnia, Canada Uentrop, Germany Chiba, Japan Otake, Japan Ulsan, Republic of Korea Dordrecht, The Netherlands Zlin, Czech Republic Beijing, China Shenzhen, China Antwerp, Belgium Sacramento, CA Lake Wales, FL Elkton, MD Auburn, MA Ashland, OH Upper Sandusky, OH
Acetic acid Ethylene Methacrylic acid Methylacrylate Nylon Polyester Polyethylene Polyolefin resin Vinyl acetate monomer
Arkema Celanese Consolidated Containers Dow ExxonMobil Kuraray Lyondell Rapak Sekisui Solutia
33
Growth Strategies
Deliver continued high growth pace in emerging markets Differentiate powerful brands and unique value propositions through market-facing models Drive unique technologies, such as high performance fibers Improve competitive position by reducing cost to serve
$1,000
$800 $600 $400 $200 $0 2007 2008 2009
By Major Industry
Industrial 29% Construction/Materials 24% Textile/Apparel 22% Personal and Healthcare 5% Electrical and Electronics 5% Motor Vehicle 4% Military and Law Enforcement 11%
By Region
North America* 46% Europe** 28% Asia Pacific 21% Latin America 5%
*Includes U.S. and Canada **Includes Europe, Middle East and Africa
34
Key Capabilities
Market-driven science in selective barriers, high-strength/temperature materials, environmental solutions, protective/decorative surfaces World-class safety reputation Global brand strength Strong value chain relationships Robust new product development
Core Markets
Construction Industrial safety Emergency response Military Transportation Industrial biotechnology Food Oil and gas Health care
Innovation Smart fabric responding to high temperature environment High performance fabrics High strength fiber solutions Next generation light weight vest Mid-range electrical protective solution Fire resistant material meeting EN standards for high visibility Delivers high-resolution inkjet printing For use in displays for light application and energy efficiency
Markets Served Emergency response Law enforcement Automotive, general industrial Military and law enforcement Electrical insulation Protective apparel Printing and publishing Displays and electronics Residential and commercial construction Residential and commercial construction Oil refining, wastewater treatment, power generation Automotive, food and beverage, HVAC, and life sciences Oil refining Residential and commercial construction
Kevlar XP Kevlar AP
KM2 Plus Nomex LT Nomex ProVis DuPont Tyvek for Inkjet Printing DuPont Tyvek Optical
Metallized Tyvek membranes for radiant heat DuPont Tyvek Silver, ThermaWrap, AtticWrap, RoofLiner loss reduction DuPont Zodiaq and Corian expanded color introductions DuPont Clean Technologies Hybrid Membrane Technology IsoTherming Hydroprocessing Technology Montelli and Simplicity New color options to suit many lifestyles and environments Products and processes dedicated to clean air, clean fuel, and clean water Fills performance gaps between microporous membranes and traditional nonwovens Provides a faster and less expensive way for refiners to make cleaner fuel Entry-level solid surface products
35
36
www2.dupont.com/stormroom/en_US/ www2.dupont.com/Green_Vista Buffalo, NY Guangzhou, China Luxembourg Richmond, VA Thetford Mines, Canada Toyama, Japan Ulsan, Korea Xishui, China Alumina trihydrate Calcium carbonate Methyl methacrylate Quartz Polyethylene Polyester resin Polypropylene Cosentino Doerkin Dow Fiberweb Granite HiMacs LG LaFarge Laminate Samsung Solutia Topstone/Hanwha
Building and construction Consumer goods Education Food service Geotextiles and landscape fabrics Home and architectural interiors Home furnishings Lodging Medical and health care Premium decorative Retail fixtures
37
Pharmaceuticals
History
On October 1, 2001, DuPont Pharmaceuticals was sold to the Bristol-Myers Squibb Company. DuPont retained its interest in Cozaar (losartan potassium) and Hyzaar (losartan potassium
Outlook
Pharmaceuticals Cozaar/Hyzaar income is the sum of two parts: income related to a share of the profits from North American sales and certain markets in EMEA, and royalty income derived from worldwide contract net sales linked to the exclusivity term in a particular country. Patents and exclusivity have already started to expire and the U.S. exclusivity for Cozaar ends in April 2010. The worldwide agreement terminates when the following conditions are met: (i) the Canadian exclusivity ends in 2013, and (ii) North American sales fall below a certain level. Therefore, absent any major changes in the markets, the company expects its income to take its first significant step-down in 2010, and from that year on, continue to decline each year to zero when the contract ends, which is expected to be after 2013. In general, management expects a traditional sales, earnings and cash decline for a drug going off patent in the pharmaceutical industry. The company expects revenues from Cozaar/Hyzaar to significantly decrease after the U.S. patents expire in 2010.
with hydrochlorothiazide). These drugs were discovered by DuPont and developed in collaboration with Merck and are used in the treatment of hypertension. The U.S. patents covering the compounds, pharmaceutical formulation and use for the treatment of hypertension, including approval for pediatric use, will expire in 2010. DuPont has exclusively licensed worldwide marketing and manufacturing rights for Cozaar and Hyzaar to Merck. Pharmaceuticals receives net proceeds and royalties as outlined below. Merck is responsible for manufacturing, marketing and selling Cozaar and Hyzaar .
38
Major Global Sites and Principal Products (includes joint ventures and major affiliates)
NORTH AMERICA Canada Ajax Chatham Georgetown Lethbridge Maitland Sarnia Thetford Mines Mexico Altamira Culiacan Cortazar Lerma Reynosa Tlalnepantla United States SOUTH AMERICA Argentina Berazategui Salto Brazil Camacari Cerquilho Esteio J/V Solae Formosa Goiabal Itumbiara Planaltina Santa Cruz Santa Rosa So Paulo Chile Paine (Los Condes) Colombia Barranquilla Venezuela Valencia Austria Guntramsdorf Parndorf Belgium Antwerp J/V Borealis Ieper J/V Solae Mechelen Zytel and Minlon nylon resins; industrial rubber Agricultural seed
Automotive finishes Agricultural seed Agricultural seed Agricultural seed Zytel and Minlon nylon resins Ethylene copolymers Zodiaq quartz surfaces Ti-Pure titanium dioxide Agricultural seed Agricultural seed Crop protection Agricultural seed Automotive finishes (See page 40)
Germany (continued) Uentrop J/V Lanxess Wuppertal Hungary Szarvas (neuman) Italy Sissa Luxembourg
Engineering polymers Automotive and industrial finishes Agricultural seed Agricultural seed Engineering polymers; Tyvek brand protective material; Typar high-strength spunbonded products; Kapton polyimide film Cronar polyester photographic film base; polyester films Delrin acetal resins; Teflon fluoropolymer; Viton fluoroelastomer; ethylene copolymers; fluorochemicals Tynex nylon filaments Agricultural seed Nomex brand fiber; Sontara spunlaced products; crop protection Fine and custom chemicals Powder coatings Powder coatings Agricultural seed Agricultural seed
Wuxi Zhangjigang J/V Zhengzhou J/V Solae India Hyderabad Madurai Savli Indonesia Jakarta Kabanjahe Malang Surabaya (East Java) Japan Chiba J/V DuPont
Crop protection; research laboratories Riston dry film photoresists; engineering polymers; Sontara spunlaced products; Tyvek brand protective material; Teflon non-stick coatings, Zytel nylon resin; LCD enhancement; Liqui-Box; solar modules Nylon filaments Delrin polyacetal Soy protein isolate food ingredient Agricultural seed Tynex nylon filaments; Teflon non-stick coatings Engineering polymers; crop protection Polyester films Agricultural seed Agricultural seed Crop protection
Crop protection Needlepunch and spunlace fabrics Soy protein isolate food ingredient Agricultural seed Crop protection Agricultural seed Agricultural seed Agricultural seed Agricultural seed Automotive finishes Agricultural seed Crop protection Automotive finishes
Sweden Malm Vaestervik Switzerland Bulle Turkey Adana Karacabey Production and Sales United Kingdom Bristol Corby J/V Solae Darlington Dumfries J/V Teijin Films East Kilbride Humberside Maydown Ruabon
EUROPE AND MIDDLE EAST Automotive finishes and industrial coatings Agricultural seed Ethylene copolymers Soy protein isolate food ingredient Teflon non-stick coatings; automotive finishes; engineering polymers; Vespel parts and shapes Agricultural seed PVB Interlayer Soy protein concentrate food ingredient Agricultural seed Agricultural seed Agricultural seed Crop protection Powder coatings Surface protection and fluoroadditives Agricultural seed Powder coatings Cyrel, Digital Cyrel, CyrelFAST flexographic printing plates and Cyrel round printing sleeves Engineering polymers; Butacite polyvinyl butyral interlayer; nylon intermediates, specialties, and polymer
Sudbury Wilton J/V Teijin Films Wythenshawe Ukraine Kyiv Production and Sales AFRICA Ethiopia Addis Ababa South Africa Rosslyn Zimbabwe Juru (Harare) ASIA PACIFIC Australia Narromine Wyreema China Beijing J/V Hua Mei Changchun Changshu
Microcircuit materials Food ingredients Powder coatings Polyester films PlasmaSolve and Posistrip removers Dymel aerosol propellants Kevlar brand fiber Microplanar chemical mechanical planarization formulations; Syton and Mazin colloidal silica slurries Fine and custom chemicals Polyester films Liqui-Box Agricultural seed
Suva refrigerants; ethylene copolymers Gifu J/V Teijin Films Polyester films Hitachi Pyralin polymide coatings Ibaraki J/V Teijin Films Polyester films Mizushima J/V Kapton polyimide film DuPont Japan Osaka Nomex brand paper Otake J/V Ethylene copolymers DuPont Japan Shimizu J/V Teflon fluoropolymer; DuPont Japan fluorochemicals Tokai J/V DuPont Kapton polymide film; Kevlar brand fiber Tokyo Soy protein-based consumer food products Toyama J/V DuPont Corian solid surfaces Toyohashi J/V Riston dry film photoresists DuPont Japan Utsunomiya Engineering polymers; Tyvek brand protective material Utsunomiya J/V Polyester films Teijin Films Pakistan Sahiwal Philippines Cabuyao (Pasis City) Polomolok Republic of Korea Gumi Ulsan Agricultural seed Crop protection Agricultural seed Adhesiveless flexible copper clad laminates Butacite polyvinyl butyral interlayer; engineering polymers; Corian solid surfaces Zytel and Minlon nylon resins; nylon intermediates, specialties, and polymer; Delrin acetal resins Pyralux flexible laminates; semiconductor materials Ti-Pure titanium dioxide; nylon yarns; purified terephthalic acid (PTA) Crop protection Circuit materials technical center; Fodel, Solamet, Birox thick film compositions Crop protection Agricultural seed
Croatia Osikek (Za Sreb) Czech Republic Zlin (Boeclav) Denmark Aarhus J/V Solae Egypt Meet Bera Toukh France Aussonne Cernay Montbrison Villers-St. Paul Germany Buxtehude Landshut Neu Isenburg
Agricultural seed Agricultural seed Agricultural seed Taiwan Hsinchu Kuan Yin Lung Tan Taoyuan Singapore
Uentrop
Ethylene copolymers Automotive finishes Hydrofluorocarbon blend refrigerants Dongguan Microcircuit materials Foshan J/V Teijin Films Polyester films Guangzhou Montelli solid surfaces Huangshan Powder coatings Jiading Automotive finishes and industrial coatings Jiuquan Agricultural seed Loehe J/V Solae Soy protein isolate food ingredient Ningbo J/V Teijin Films Polyester films
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Major U.S. Sites and Principal Products (includes joint ventures and major affiliates)
Alabama Mobile Arkansas El Dorado Pocahontas California Fresno Hayward Crop protection Fluorochemicals Agricultural seed Agricultural seed MicroPlanar chemical mechanical planarization formulations; PlasmaSolve and Posistrip removers Liqui-Box Polymer-OLED (organic lightemitting diode) display devices LCD enhancement StoneTech Agricultural seed Acid regeneration Ti-Pure titanium dioxide; ferric chloride
Louisiana Burnside La Place Maryland Elkton Massachusetts Auburn Michigan Constantine Mount Clemens Minnesota Jackson Mississippi De Lisle Pascagoula Nebraska Doniphan York New Jersey Deepwater
Sulfur products and specialty acids Phenylenediamines, Neoprene synthetic rubber Liqui-Box Liqui-Box Agricultural seed Automotive finishes Agricultural seed Ti-Pure titanium dioxide Aniline and nitrololuene derivatives Agricultural seed Agricultural seed Specialty and performance chemicals; fluorochemicals; elastomers; industrial chemicals Acid regeneration Cyrel, Digital Cyrel, and CyrelFAST flexographic printing plates and Cyrel round printing sleeves; Teflon and Autograph non-stick coatings; Pyralin polymide coatings Refinery solutions Corian solid surfaces; Tedlar PVF film Sodium and lithium Ink jet inks Butacite polyvinyl butyral interlayer; Nafion ion exchange membranes Polyester films
Crop protection; microcircuit materials; Fodel thick film compositions Specialty chlorine dioxide
Sacramento Santa Barbara Torrance Walnut Creek Woodland Delaware Delaware City Edgemoor Newark Pencader Tralee Park Wilmington
South Carolina Charleston-Cooper River Crastin PBT polyester resins; Hytrel polyester elastomer Florence J/V Teijin Films Polyester films; Cronar polyester photographic film base Tennessee Chattanooga Zytel and Minlon nylon resins; Zenite LCP (liquid crystal polymer) resins; industrial rubber Hydrogen cyanide and derivatives; Oxone monopersulfate; agricultural seed Soy protein isolate food ingredient Ti-Pure titanium dioxide Sontara spunlaced products Polyester films
Memphis
Memphis J/V Solae New Johnsonville Old Hickory Old Hickory J/V Teijin Films Texas Bayport Baytown Beaumont Corpus Christi El Paso Houston LaPorte Orange Sabine Plainview Victoria Weslaco Utah Logan
Vespel parts and shapes Kalrez perfluoroelastomer parts Corporate headquarters; customer service center Experimental Station Research and development Liqui-Box Zircon; Starblast abrasives
Florida Lake Wales Starke Georgia Valdosta Hawaii Kekaha Waialua Idaho Nampa Illinois El Paso Gibson City J/V Solae Good Hope Le Roy Litchfield McLeansboro Princeton Shelbyville St. Joseph Utica Woodhull Indiana Mt. Vernon Plymouth Remington J/V Solae Rushville Tipton Worthington Iowa Algona Cherokee Durant Dysart Fort Madison Hedrick Johnston Mt. Pleasant Reinbeck Renwick Toledo Waterloo Kansas Leawood Kentucky Louisville Louisville J/V Solae Wurtland
Linden Parlin
Crop protection Agricultural seed Agricultural seed Agricultural seed Crop protection Soy protein concentrate food ingredient Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Soy protein concentrate food ingredient Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Automotive resins; ink jet inks Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Agricultural seed Refinery solutions Fluorochemicals Soy protein-based industrial polymer products Sulfur products and specialty acids Parsippany New York Buffalo Niagara Falls Rochester North Carolina Fayetteville
Fayetteville J/V Teijin Films Laurinburg Agricultural seed Research Triangle Park Electronic materials R&D and customer service center North Dakota Wahpeton Ohio Ashland Bellevue J/V Solae Circleville Cleveland Columbus Dayton Fort Hill Grand Rapids Upper Sandusky Worthington Oklahoma Pryor J/V Solae Oregon Hermiston Pennsylvania Elizabethtown Towanda Agricultural seed Liqui-Box Soy protein concentrate food ingredient Vespel parts and shapes; Kapton polymide film; Teflon fluoropolymer Vespel parts and shapes Agricultural seed Polymers for IC photoresists Sulfur products and specialty acids Agricultural seed Liqui-Box Liqui-Box Soy protein isolate food ingredient Agricultural seed Agricultural seed Riston dry film photoresists and Pyralux flexible laminates; Cromalin, Dylux, Thermal 4-Color, WaterProof proofing systems; Cyrel cover sheets, Inkjet barrier films, Green Tape low temperature co-fired ceramics; Tedlar PVFM; photopolymer holographic film
Kapton polymide film Aniline Aniline; Hypalon chlorosulfonated polyethylene Suva refrigerants; Formacel blowing agents; Dymel aerosol propellants Acid regeneration Powder coatings; crop protection Elvanol polyvinyl alcohol resins; crop protection; fluorochemicals Ethylene copolymers; specialties and polymer; Agricultural seed Ethylene copolymers Agricultural seed Izon product authentication holograms and holographic optical elements Automotive finishes Polyester films Sulfur products and specialty acids Kevlar brand fiber; Nomex brand fiber and paper; Tyvek brand protective material; Zytel and Minlon nylon resins Polyester films
Virginia Front Royal Hopewell J/V Teijin Films James River Richmond Spruance
Richmond Spruance J/V Teijin Films Washington Connell West Virginia Belle
Agricultural seed Dymel aerosol propellants; methylamines/methylamides; dimethyl sulfate; glycolic acid; Vazo initiators, Crop protection Teflon and Tefzel fluoropolymers; Butacite polyvinyl butyral interlayer; Zytel and Minlon nylon resins; Delrin acetal resins; Rynite PET and Crastin PBT polyester resins; Hytrel polyester elastomer; Zenite LCP (liquid crystal polymer) resins; Tynex filaments
Parkersburg
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Board of Directors
Ellen J. Kullman 1
Chair of the Board and Chief Executive Officer
Ellen J. Kullman
Chair of the Board and Chief Executive Officer
W. Donald Johnson
Senior Vice President Human Resources
James C. Borel
Executive Vice President
Jeffrey L. Keefer
Executive Vice President
Thomas M. Connelly
Executive Vice President and Chief Innovation Officer
Thomas L. Sager
Senior Vice President and General Counsel
Board Committees
1 Strategic Direction 2 Environmental Policy 3 Audit 4 Compensation 5 Corporate Governance 6 Science and Technology
Nicholas C. Fanandakis
Senior Vice President and Chief Financial Officer
Mark P. Vergnano
Executive Vice President
DuPont Investor Relations 1007 Market Street, Wilmington, DE 19898 (302) 774 4994 Fax: (302) 773 2631 www.dupont.com
Copyright 2010 DuPont. The DuPont Oval Logo, DuPont, The miracles of science, and all products denoted with or are trademarks or registered trademarks of E.I. du Pont de Nemours and Company or its affiliates. All rights reserved. Zemea is a registered trademark of DuPont Tate & Lyle Bio Products Company LLC, SmartStrand is a registered trademark of Mohawk Industries Inc., Herculex is a registered trademark of Dow AgroSciences LLC, Roundup Ready is a registered trademark of Monsanto, SAI is a registered trademark of Toyota.