DuPont Performance Materials

Transcription

1 DuPont Performance Materials Diane H. Gulyas Group Vice President Citi Basic Materials Symposium December 5, 2007

2 2 Regulation G The attached charts include company information that does not conform to generally accepted accounting principles (GAAP). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the company and allows investors to better evaluate the financial results of the company. These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companies. We urge you to review DuPont's SEC filings, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, for a discussion of some of the factors which could cause actual results to differ materially. Reconciliations of non-gaap measures to GAAP results are available on the Investor Center website at Forward-Looking Statements During the course of this meeting we may make forward-looking statements or provide forward-looking information. All statements that address expectations or projections about the future are forward-looking statements. Some of these statements include words such as "expects," "anticipates, "plans," "intends," "projects," and "indicates. Although they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of risks, uncertainties, and assumptions. Some of those risk factors include economic conditions, competitive pressures, challenges associated with research and development, market acceptance of new products, and regulatory approval. We urge you to review DuPont's SEC filings, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, for a discussion of some of the factors which could cause actual results to differ materially. The Company does not undertake to update any forward-looking statements as a result of future developments or new information.

3 DuPont Performance Materials Focused Growth + Productivity Gains 3 Electronics - Electrical - 11% Markets 2006 Regional Revenue Construction / Materials - 10% Packaging - 29% Europe 31% North America - 40% Industrial - 5% Consumer - 9% Transportation - non-auto - 10% Transportation - Auto - 26% Latin America - 6% Asia - 23% Major Customers Delphi Denso Siemens Tyco Electronics PPG Imation Asahi Glass Sealed Air Major Competitors BASF Ticona Dow 3M ExxonMobil SABIC Lanxess Solutia Leading Supplier of High Performance Engineering Polymers, Elastomers, Films and Packaging Polymers

4 $ Billions 4 Financial Performance Segment Sales 8% CAGR est. PTOI Margin 8% 11% 9% 10% 13% est. Excludes significant items and restated to reflect current Elastomers portfolio

5 Strong Results 2005 to 2007 est. 5 Metric Improvement (bps) Pre-tax operating margin +400 Return on net assets +500 Variable margin +100 Fixed costs as % of sales +400 Excludes significant items and restated to reflect current Elastomers portfolio

6 6 Drive Price Gains and Reduce Fixed Costs $ Millions Cumulative Local Price Gains 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 Disciplined price actions continue New products support price gains Mix enrichment strategy 43% 41% 39% 37% 35% 33% 31% 29% Fixed Costs as Percent of Revenue Y-E Est Six Sigma and Lean Manufacturing Productivity gains offset fixed cost inflation Excludes significant items and restated to reflect current Elastomers portfolio

7 Aligned with DuPont Growth Strategies 7 Put Science to Work Power of One DuPont Go Where The Growth Is

8 8 DuPont Performance Materials Growth Drivers Leverage global presence Expand in emerging economies Grow from innovation New products New end-use applications Capture future growth opportunities Photovoltaics Advanced metals replacement Sustainable/renewable polymers

9 9 Leverage Global Presence Regional Revenue Mix 54% 46% N. America 61% 39% 60% N. America N. America 2003 Current Restated to reflect current Elastomers portfolio

10 Expand in Emerging Economies Emerging Region Revenue 10 $ Millions % CAGR* est Emerging Asia Emerging Europe Leveraging position with key customers as they move to new geographies Local capability to support market development Local customers moving to higher value-in-use materials Profit margins on par with worldwide average *CAGR for combined emerging Europe and Asia Restated to reflect current Elastomers portfolio

11 Grow From Innovation New Products, New End-use Applications, Attractive Growth Markets 11 Attractive Transportation Targets Deploying Globally High Growth Markets Packaging Solutions Enabling Safe Infrastructure

12 12 Capture Future Growth Opportunities Photovoltaics Advanced metals replacement Sustainable/Renewable polymers

13 Photovoltaics Materials Science Supports Sustainable Energy Generation 13 Growth Drivers Demand growth >35%/year growing to 50%/year Drive for grid parity through improved productivity in photovoltaic energy generation DPM Solutions Technologies to enable higher power output with improved productivity Products to increase solar module lifetime System integration of materials DuPont Installation Wilmington, DE

14 Performance Materials Solutions for Photovoltaics 14 Top Layers DuPont Teflon films Encapsulant Layer Offerings DuPont Elvax resins DuPont Surlyn resins DuPont Butacite interlayers DuPont SentryGlas Plus interlayers Metallization Pastes DuPont Solamet pastes Backsheet Films Mylar polyester film DuPont Tedlar films Molded Components DuPont Rynite resins

15 Metals Replacement for Light Weight & Energy Efficiency 15 Growth Drivers Energy cost escalation Plastics Approaching Properties of Metal Demand for light-weighting in automotive, electronics and key markets DuPont Technology Platforms Hybrid technologies Strength New Hybrids Future Al Zinc Steel Nanometal/Polymer hybrids with alliance partners Unreinforced Resins Reinforced Resins Stiffness

16 Nanometal/Polymer Hybrids for Design Flexibility & Lightweight Components 16 Innovation Platform Combining ultra-strong nanometal with high stiffness polymers enables manufacture of lightweight components with functionality of plastics and properties of metal MetaFuse Nanometal/Polymer Hybrid Technology

17 17 Sustainable/Renewable Polymers Future Growth Opportunities Performance Materials is DuPont s center of competency for polymer science Demand for sustainable solutions accelerating in key markets Unmet need for renewable offerings with equal/better performance than petrochemical-based polymers Programs underway Renewable reformulations for today s offerings New offerings for strategic markets New alliances to expand technology base

18 18 What You Can Expect from Performance Materials Consistent execution of growth strategies More new product/end-use application innovations Continued growth in emerging economies Exciting opportunities in growth markets with new science