Wells Fargo Securities Industrial & Construction Conference May 8, 2014 New York

Transcription

1 Wells Fargo Securities Industrial & Construction Conference May 8, 2014 New York Nick Fanandakis Chief Financial Officer E. I. du Pont de Nemours & Company

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. This data should be read in conjunction with previously published company reports on Forms 10-K, 10-Q, and 8-K. These reports, along with reconciliations of non-gaap measures to GAAP are available on the Investor Center of under Key Financials & Filings in Quarterly Supplemental Financial Data and Non-GAAP Reconciliations. Reconciliations of non- GAAP measures to GAAP are also included with this presentation. Forward Looking Statements During the course of this presentation we may make forward-looking statements or provide forward-looking information. All statements that address expectations or projections about the future are forward-looking statements. Some of these statements include words such as plans, expects, will, anticipates, believes, intends, and estimates. Although they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of risks, uncertainties, and assumptions. Some of which include: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; global economic and capital markets conditions; litigation and environmental matters; changes in laws and regulations or political conditions; business or supply disruptions; ability to protect and enforce the company s intellectual property rights successful integration of acquired business and separation of underperforming or non-strategic assets; and successful completion of the proposed spinoff of the Performance Chemicals segment including ability to fully realize the expected benefits of the proposed spinoff. The company does not undertake to update any forward-looking statements as a result of future developments or new information. Developing Markets Total developing markets is comprised of Developing Asia, Developing Europe, Middle East & Africa, and Latin America. A detailed list of all developing countries is available on the Earnings News Release link on the Investor Center website at 2 2

3 Three Strategic Priorities Drive The Value Of DuPont AGRICULTURE & NUTRITION INDUSTRIAL BIOSCIENCES ADVANCED MATERIALS Extend leadership across high-value, science-driven segments of the Ag and Food value chain. Develop world-leading industrial biotech capabilities to create new businesses. Grow leading position in differentiated highvalue materials. Higher Growth, Higher Value Company Through Three World-Leading Positions 3

4 Together With Three Key Operational Priorities INNOVATION GLOBAL REACH EXECUTION Rigorous pipeline management Disciplined project execution Increasing return on R&D Driving penetration in fast-growing, developing markets Delivering ongoing productivity Optimizing resource allocation Returning cash to shareholders 4

5 Stronger Positions in Secular Growth Markets Agriculture Food Biosciences Automotive Mobile Devices, Displays Solar/Energy Protection Well Positioned in Growth Markets 5

6 DuPont is Translating Leading Science Into Solutions for the World s Great Challenges WORLD CLASS INTEGRATED SCIENCE COUPLED WITH COMPELLING MARKET INSIGHTS TO SOLVE WORLD SCALE CHALLENGES FOOD Integration of emerging biological sciences ENERGY PROTECTION Engineering Materials Science Chemistry Biological Sciences Engineering Chemistry Materials Science Biological Sciences Broadest, Deepest Science Capabilities of Any Enterprise 6

7 Science is the Growth Engine for the Company Agriculture & Nutrition Bio-based Industrials Advanced Materials Seeds Traits Crop Protection Specialty Food Ingredients Enzymes Biomaterials Biofuels Biochemicals Electronic Materials Protective Materials Alternative Energy Advanced Polymers Advanced Processes $ 5.8B* new product revenue $ 0.4B* new product revenue $ 3.9B* new product revenue Integrated Science is a Competitive Advantage *2013 revenue from products introduced in the last four years 7

8 Portfolio Evolves for Higher Growth, Higher Value 2008 Segment Sales* $20, Segment Sales* $29,337 Agriculture Electronics & Communications Industrial Biosciences Segment Sales* $10,396 Nutrition & Health Performance Materials Safety & Protection Segment Sales* $6,703 Performance Chemicals** Performance Coatings*** * Amounts represent segment sales, which include transfers. ** Separation of Performance Chemicals announced in 4Q 2013, anticipated completion mid-2015 *** Performance Coatings segment sold 1Q

9 Dividends Will Continue To Be A Priority Dividends per Share Stability and Growth Focus $1.64 $1.64 $1.64 $1.70 $1.78 Continuous dividend since 1904 No reduction in dividend during recession or post Pharma license expiration Dividend growth restarted Dividend yield and payout ratio are above peers Aim to Grow Future Dividends In Line With Earnings 9

10 To Be Complemented With Share Buybacks Capital Returned To Shareholders Comments Cumulative Capital Returned To Shareholders ($B) $12B $10B $8B $6B $4B $2B $0B $1B $2B $3B $5B $7B $10B Cumulative Dividends (1) Cumulative Buybacks Capital returned to shareholders has accelerated under current management s tenure Two dividend increases $1B share repurchase with Performance Coatings proceeds Announced $5B share repurchase program, including $2B buyback in 2014 We Will Continue To Repurchase Shares With Excess Cash In Line With Our Balance Sheet Objectives And Strategic Opportunities (1) Common dividends paid to shareholders 10

11 Two Strong Highly Competitive Companies with Separate and Distinct Value Creation Strategies DuPont Performance Chemicals Growth Focus Science & Technology Driven Cash Generation Focus Process Technology Driven Leading Technologies Science Integration Across Businesses Strong Applications Development Targets Secular Driven Growth Innovative Products; Robust Pipeline Global Reach and Productivity Leading Businesses Customer Focused Application Development Low Cost Production Capital Productivity Sustainable Operator Regulatory Leadership and Advocacy MISSION: Growth Differentiated and integrated science MISSION: Cash Generation Industry leadership and productivity 11

12 Two Companies with Strong Financial Profiles DuPont DuPont Excluding Performance Chemicals Performance Chemicals Segment Sales* $36.0B $29.3B $6.7B 2013 Sales by Segment Perf. Mat. 18% IB 3% N&H 10% S&P 11% E&C 7% Ag 32% PChem 19% Perf. Mat. 22% IB 4% S&P 13% N&H 12% E&C 9% Ag 40% DC&F 55% DTT 45% Segment Operating $5.9B $4.9B $1.0B Earnings* CapEx** $1.9B $1.5B $0.4B R&D $2.2B $2.1B $0.1B * Segment Sales include transfers. Segment Operating Earnings is a non-gaap measure. See appendix for reconciliation of non-gaap measures to GAAP. Refer to the Company s website for additional reconciliations of non-gaap measures. ** CapEx includes purchases of property, plant and equipment and investment in affiliates. 12

13 What You Can Expect Strategic Priorities Operational Priorities Extend Ag & Nutrition Leadership Innovation Build Bio-based Businesses Global Reach Strengthen Advanced Materials Execution 7% 12% Sales CAGR Operating EPS CAGR Long Term Growth Targets 13

14 DuPont: Accelerating Achievement of Long Term Growth Targets Segments Long-Term Targets Sales CAGR Margins* 2013 Margins* Agriculture 8-10% 22-24% 21% Electronics & Communications 7-9% 16-18% 13% Industrial Biosciences 7-9% 16-18% 14% Nutrition & Health 7-9% 12-14% 9% Performance Chemicals 3-5% 18-20% 15% Performance Materials 3-5% 16-18% 20% Safety & Protection 5-7% 21-23% 18% 7% Sales CAGR & 12% Operating EPS CAGR * Excludes non-operating pension/opeb costs and significant items. See appendix for reconciliations of non-gaap measures to GAAP. 14

15 Segment Summaries

16 Agriculture Summary Sales and Margin Performance Key Growth Drivers Product and service innovation Developing markets Strategic investments Margin expansion $11.7 $10.4 $9.2 20% 21% 21% Sales ($B)* Operating Margins (%)** Long-Term Growth Targets: Sales 8-10% CAGR with 22-24% Margins * Segment sales include transfers. ** Excludes non-operating pension/opeb costs and significant items. See appendix for a reconciliation of non-gaap measures. 16

17 Electronics & Communications Summary Key Growth Drivers Improving lifetime, efficiency and cost of photovoltaic modules Enabling higher performance and versatility in smartphones and tablets Commercializing OLED technology for TVs Sales and Margin Performance $3.2 14% $2.7 10% $2.5 13% Sales ($B)* Operating Margins (%)** Long-Term Growth Targets: Sales 7-9% CAGR with 16-18% Margins * Segment sales include transfers. ** Excludes non-operating pension/opeb costs and significant items. See appendix for a reconciliation of non-gaap measures. 17

18 Industrial Biosciences Summary Key Growth Drivers Population and income growth fueling core enzyme demand in emerging markets Increasing use of sustainable materials driving biobased solutions Global sustainability mandates and energy security driving biofuels demand Sales and Margin Performance $0.7 12% $1.2 $1.2 14% 14% Sales ($B)* Operating Margins (%)** Long-Term Growth Targets: Sales 7-9% CAGR with 16-18% Margins * Segment sales include transfers. ** Excludes non-operating pension/opeb costs and significant items. See appendix for a reconciliation of non-gaap measures. 18

19 Nutrition & Health Summary Sales and Margin Performance Key Growth Drivers $3.4 $3.5 Underlying health, wellness and food safety trends $2.5 Target developing markets Investment in product and application innovation Drive margin expansion through innovation, differential management and productivity 8% 9% 9% Sales ($B)* Operating Margins (%)** Long-Term Growth Targets: Sales 7-9% CAGR with 12-14% Margins * Segment sales include transfers. ** Excludes non-operating pension/opeb costs and significant items. See appendix for a reconciliation of non-gaap measures. 19

20 Performance Chemicals Summary Sales and Margin Performance Key Growth Drivers Continue Altamira expansion to reduce our costs and meet market demand Drive commercialization for next generation refrigerants Deliver on industry leading productivity projects $7.8 27% $7.2 25% $6.7 15% Sales ($B)* Operating Margins (%)** Long-Term Growth Targets: Sales 3-5% CAGR with 18-20% Margins * Segment sales include transfers. ** Excludes non-operating pension/opeb costs and significant items. See appendix for a reconciliation of non-gaap measures. 20

21 Performance Materials Summary Sales and Margin Performance $6.8 $6.4 $6.5 Key Growth Drivers Automotive light weighting, increasing use of plastics Increased penetration in Asia Growth in renewable polymers 15% 19% 20% Sales ($B)* Operating Margins (%)** Long-Term Growth Targets: Sales 3-5% CAGR with 16-18% Margins * Segment sales include transfers. ** Excludes non-operating pension/opeb costs and significant items. See appendix for a reconciliation of non-gaap measures. 21

22 Safety & Protection Summary Sales and Margin Performance Key Growth Drivers Driving product innovation and application development Investing in downstream marketing and brands Reducing our cost structure to gain profitable market share $3.9 $3.8 $3.9 17% 16% 18% Sales ($B)* Operating Margins (%)** Long-Term Growth Targets: Sales 5-7% CAGR with 21-23% Margins * Segment sales include transfers. ** Excludes non-operating pension/opeb costs and significant items. See appendix for a reconciliation of non-gaap measures. 22

23 Appendix 1: First Quarter 2014 Results

24 1Q 2014 Financial Highlights* $ in millions, except EPS 1Q14 vs. 1Q13 EPS Operating earnings** $1.58 1% GAAP earnings $1.54 1Q14 vs. 1Q13 Consolidated Net Sales* $10,128 (3%) Volume (1%) Local Prices (1%) Currency Impact (1%) Segment Operating Earnings** $2,248 (1%) * Amounts reflect continuing operations ** See appendix for reconciliations of Non-GAAP Measures 24

25 1Q 2014 Segment Operating Earnings* Variance ($74) $2,276 Segment Operating Earnings* ($51) $37 $26 $17 $15 $7 ($5) $2,248 Segment Operating Earnings* 1Q13 Ag Perf Chem S&P E&C N&H IB Perf Mtls Other 1Q14 Key Takeaways Agriculture lower due to year-on-year shifts in timing and planted area Performance Chemicals operating earnings decline due to lower price and weather Safety & Protection, Electronics & Communications, Nutrition & Health and Industrial Biosciences delivered substantial operating earnings improvement Segment results include $43 ($0.04 per share) negative currency impact * See appendix for details of significant items and reconciliation of Non-GAAP Measures 25

26 Global Sales Regional Highlights 1Q 2014 Sales by Region 1Q 2014 Sales YOY % CHG Developed Asia 7% Developing Asia 10% Latin America 10% Developed EMEA 19% U.S. & Canada 44% Developing EMEA 10% Region % Worldwide -3% U.S. & Canada -8% Developed EMEA +9% Developed Asia -6% Developing Markets - Developing Asia +5% Developing EMEA +8% Latin America -10% 26

27 1Q 2014 Operating EPS* Variance $1.56 Operating* EPS ($0.02) ($0.05) $0.06 $0.02 $0.01 $1.58 Operating* EPS 1Q 2013 Segment results EGL Taxes Corporate & Interest Exp Lower shares 1Q 2014 Key Takeaways Segment performance reflects operating earnings growth in most segments, offset by lower Agriculture and Performance Chemicals operating earnings Exchange losses higher due primarily to currency devaluation in Argentina and the Ukraine more than offset by lower base tax rate The base tax rate was 20.5%* compared to 23.4%* in the prior year; anticipate full year base tax rate of 22%* Cost control and restructuring savings delivered lower corporate expenses * See appendix for details of significant items and reconciliation of Non-GAAP Measures 27

28 Other Financial Highlights On track to complete Performance Chemicals separation about mid 2015 Physical separation of manufacturing sites underway New legal entity structures being created Day One operating plans being finalized Standalone financial statements being prepared Target initial regulatory filings 4Q

29 Free Cash Flow Changes in Agriculture working capital Lower tax payments CapEx spend $0.3B, equal to 1Q13 Balance Sheet and Cash March 31, 2014 Strong Balance Sheet $7.5B net debt** $1.2B maturing debt retired $1B ASR initiated; ~13 million shares retired $ Billions Free Cash Flow* 1Q13 Cash and Debt 1Q14 Use of Cash for remainder of 2014 $1B share repurchase $0.5 debt maturity in 2Q Dividends Capex spend est. $1.9B FY 2014 Continued growth investments; in line with strategy $ Billions Gross Debt Cash Net Debt** Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 * Free Cash Flow is cash used by operating activities of ($2,421) and ($2,667) less purchases of plant, property and equipment of $320 and $321 for the three months ended March 31, 2014 and 2013, respectively. ** See appendix for reconciliation of Non-GAAP measures. 29

30 Appendix 2: Supplemental Quarterly Information and Reconciliations of Non-GAAP Measures

31 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES SELECTED INCOME STATEMENT DATA OPERATING EARNINGS (UNAUDITED) (dollars in millions, except per share) Year Year Year 1Q Q13 3Q13 2Q13 1Q Q12 3Q12 2Q12 1Q Q11 3Q11 2Q11 1Q11 Consolidated Net Sales 10,128 35,734 7,747 7,735 9,844 10,408 34,812 7,325 7,390 9,917 10,180 33,681 7,343 8,138 9,159 9,041 Segment Sales 10,209 36,046 7,814 7,813 9,925 10,494 35,194 7,397 7,480 10,022 10,295 34,087 7,444 8,236 9,263 9,144 Segment Operating Earnings (1) 2,248 5, ,857 2,276 6, ,241 2,473 6, ,215 2,074 2,183 Adjusted EBIT (Operating Earnings) (1) (2) 1,945 5, ,693 2,066 5, ,058 2,129 5, ,019 1,826 1,811 Adjusted EBITDA (Operating Earnings) (1) (2) 2,382 6,624 1, ,097 2,499 6, ,007 2,475 2,556 6,744 1,030 1,386 2,182 2,146 Operating Earnings Before Income Taxes (1) 1,848 4, ,582 1,956 4, ,950 2,027 4, ,724 1,724 Operating Earnings Per Share (1) (3) (1) Operating earnings are defined as earnings from continuing operations (GAAP) excluding significant items and non-operating pension and other post-employment benefit (OPEB) costs. See reconciliation of Non-GAAP Measures on following pages of this appendix and additional details on the Company s website. (2) Adjusted EBIT from operating earnings is operating earnings (as defined above) before income taxes, net income attributable to noncontrolling interests and interest expense. Adjusted EBITDA from operating earnings is adjusted EBIT from operating earnings before depreciation and amortization of intangible assets. (3) Earnings per share for the year may not equal the sum of quarterly earnings per share due to changes in average share calculations. Note:The data above provides a historical display of Selected Income Statement Data included in our Quarterly Earnings Release financials. See Quarterly Earnings Release financials for full details, including details on "Significant Items". 31

32 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES SEGMENT SALES (UNAUDITED) (dollars in millions) SEGMENT SALES Year Year Year 1Q Q13 3Q13 2Q13 1Q Q12 3Q12 2Q12 1Q Q11 3Q11 2Q11 1Q11 Agriculture 4,394 11,739 1,806 1,633 3,631 4,669 10,426 1,535 1,423 3,388 4,080 9,166 1,297 1,368 2,997 3,504 Electronics & Communications 580 2, , , Industrial Biosciences 301 1, , Nutrition & Health 861 3, , , Performance Chemicals 1,532 6,703 1,616 1,720 1,782 1,585 7,188 1,588 1,732 1,968 1,900 7,794 1,860 2,142 1,995 1,797 Performance Materials 1,593 6,468 1,576 1,663 1,670 1,559 6,447 1,534 1,614 1,699 1,600 6,815 1,618 1,745 1,745 1,707 Safety & Protection 947 3, , , , ,001 1, Other Total Segment Sales 10,209 36,046 7,814 7,813 9,925 10,494 35,194 7,397 7,480 10,022 10,295 34,087 7,444 8,236 9,263 9,144 Elimination of Transfers (81) (312) (67) (78) (81) (86) (382) (72) (90) (105) (115) (406) (101) (98) (104) (103) CONSOLIDATED NET SALES 10,128 35,734 7,747 7,735 9,844 10,408 34,812 7,325 7,390 9,917 10,180 33,681 7,343 8,138 9,159 9,041 Note: The data above provides a historical display of selected data included in our Quarterly Earnings Release financials. 32

33 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES INCOME FROM CONTINUING OPERATIONS (UNAUDITED) (dollars in millions) SEGMENT PRETAX OPERATING INCOME (LOSS) Year Year Year 1Q Q13 3Q13 2Q13 1Q Q12 3Q12 2Q12 1Q Q11 3Q11 2Q11 1Q11 Agriculture 1,442 2,132 (108) (102) 861 1,481 1,669 (103) (198) 682 1,288 1,566 (222) (184) 843 1,129 Electronics & Communications (38) (99) Industrial Biosciences (26) (6) - Nutrition & Health (20) Performance Chemicals , , Performance Materials 299 1, , , Safety & Protection Other (92) (340) (91) (107) (55) (87) (412) (80) (75) (208) (49) (55) (11) (32) 22 (34) TOTAL SEGMENT PRETAX OPERATING INCOME 2,248 5, ,777 2,241 5, ,961 2,423 5, ,024 2,183 Net Exchange (Losses) Gains (96) (128) (73) (101) (215) (54) (130) 50 (81) (146) (14) 6 3 (141) Non-Operating Pension & OPEBs Costs (30) (539) (124) (142) (126) (147) (654) (147) (157) (174) (176) (540) (135) (135) (135) (135) Corporate Expenses (217) (765) (183) (162) (206) (214) (948) (240) (233) (224) (251) (869) (166) (194) (291) (218) Interest Expense (103) (448) (108) (108) (115) (117) (464) (117) (116) (117) (114) (447) (116) (116) (115) (100) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 1,802 3, ,365 1,774 3,088 (34) (175) 1,496 1,801 3, ,486 1,589 (Provision For) Benefit From Income Taxes on Continuing Operations (357) (626) (335) (387) (616) (397) (392) (647) (15) (82) (326) (224) INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES 1,445 2, ,030 1,387 2,472 4 (40) 1,099 1,409 3, ,160 1,365 Note: The data above provides a historical display of selected data included in our Quarterly Earnings Release financials. 33

34 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES OPERATING EARNINGS (UNAUDITED) (dollars in millions) SEGMENT OPERATING EARNINGS Year Year Year 1Q Q13 3Q13 2Q13 1Q Q12 3Q12 2Q12 1Q Q11 3Q11 2Q11 1Q11 Agriculture 1,442 2, (62) 941 1,516 2,138 (77) (70) 947 1,338 1,791 (122) (59) 843 1,129 Electronics & Communications Industrial Biosciences Nutrition & Health Performance Chemicals , , Performance Materials 299 1, , , Safety & Protection Other (92) (345) (96) (107) (55) (87) (286) (91) (75) (71) (49) (27) (1) (14) 22 (34) TOTAL SEGMENT OPERATING EARNINGS 2,248 5, ,857 2,276 6, ,241 2,473 6, ,215 2,074 2,183 Corporate Expenses (201) (762) (191) (162) (195) (214) (864) (215) (174) (224) (251) (813) (166) (191) (238) (218) Interest Expense (103) (448) (108) (108) (115) (117) (464) (117) (116) (117) (114) (447) (116) (116) (115) (100) OPERATING EARNINGS BEFORE INCOME TAXES AND EXCHANGE GAINS (LOSSES) 1,944 4, ,547 1,945 4, ,900 2,108 5, ,721 1,865 Provision For Income Taxes on Operating Earnings, Excluding Taxes on Exchange Gains (Losses) (398) (983) (43) (111) (373) (456) (1,190) (61) (164) (460) (505) (1,137) (155) (177) (401) (404) Net After-tax Exhange (Losses) Gains (68) (86) (39) (43) 19 (23) (142) (29) (59) (10) (44) (65) (34) (36) 11 (6) Less: Net Income Attr. to Noncontrolling Interests OPERATING EARNINGS 1,472 3, ,189 1,459 3, ,421 1,547 3, ,318 1,442 Net Income Attributable to Noncontrolling Interests Non-Operating Pension & OPEB Costs - After-tax (21) (360) (81) (95) (85) (99) (439) (99) (106) (116) (118) (361) (90) (91) (90) (90) Significant Items - After-tax (12) (423) (294) (71) (78) 20 (680) (91) (342) (215) (32) (237) 47 (203) (81) - INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES 1,445 2, ,030 1,387 2,472 4 (40) 1,099 1,409 3, ,160 1,365 Note: The data above provides a historical display of selected data included in our Quarterly Earnings Release financials. 34

35 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES SIGNIFICANT ITEMS BY SEGMENT - PRETAX OPERATING INCOME (UNAUDITED) (dollars in millions) SEGMENT PRETAX IMPACT OF Year Year Year SIGNIFICANT ITEMS 1Q Q13 3Q13 2Q13 1Q Q12 3Q12 2Q12 1Q Q11 3Q11 2Q11 1Q11 Agriculture - (351) (196) (40) (80) (35) (469) (26) (128) (265) (50) (225) (100) (125) - - Electronics & Communications - (131) (131) (37) (2) (157) Industrial Biosciences (3) - (3) - - (79) (1) (61) (17) - Nutrition & Health (49) (36) (13) - - (126) (4) (89) (33) - Performance Chemicals - (74) (2) (72) - - (36) (33) (3) Performance Materials - (16) (16) (104) (3) (101) Safety & Protection (58) (3) (55) Other (126) 11 - (137) - (28) (10) (18) - - TOTAL SIGNIFICANT ITEMS BY SEGMENT - PRETAX - (556) (329) (112) (80) (35) (882) (92) (460) (280) (50) (411) (68) (293) (50) - Note: The data above provides a historical display of significant items included in our Quarterly Earnings Release financials. 35

36 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in millions, except per share) RECONCILIATION OF DILUTED EPS (1) Year Year Year 1Q Q13 3Q13 2Q13 1Q Q12 3Q12 2Q12 1Q Q11 3Q11 2Q11 1Q11 Operating EPS Non-Operating Pension & OPEB Costs (0.03) (0.39) (0.09) (0.09) (0.10) (0.11) (0.46) (0.11) (0.11) (0.12) (0.12) (0.39) (0.10) (0.10) (0.10) (0.10) Significant Items (0.01) (0.45) (0.31) (0.08) (0.08) 0.02 (0.72) (0.09) (0.37) (0.23) (0.04) (0.25) 0.05 (0.21) (0.08) - GAAP EPS from continuing operations (0.05) RECONCILIATION OF SEGMENT PTOI Segment Operating Earnings 2,248 5, ,857 2,276 6, ,241 2,473 6, ,215 2,074 2,183 Significant Items included in Segment PTOI - (556) (329) (112) (80) (35) (882) (92) (460) (280) (50) (411) (68) (293) (50) - Segment PTOI 2,248 5, ,777 2,241 5, ,961 2,423 5, ,024 2,183 RECONCILIATION OF ADJUSTED EBIT / ADJUSTED EBITDA TO CONSOLIDATED INCOME STATEMENTS Income (Loss) From Continuing Operations Before Income Taxes 1,802 3, ,365 1,774 3,088 (34) (175) 1,496 1,801 3, ,486 1,589 Add: Significant Items - Pretax - (Benefit) / Charge Add: Non-Operating Pension & OPEB Costs - Pretax Operating Earnings Before Income Taxes 1,848 4, ,582 1,956 4, ,950 2,027 4, ,724 1,724 Less: Net Income Attributable to Noncontrolling Interests Add: Interest Expense Adjusted EBIT (Operating Earnings) 1,945 5, ,693 2,066 5, ,058 2,129 5, ,019 1,826 1,811 Add: Depreciation and Amortization 437 1, , , Adjusted EBITDA (Operating Earnings) 2,382 6,624 1, ,097 2,499 6, ,007 2,475 2,556 6,744 1,030 1,386 2,182 2,146 (1) Earnings per share for the year may not equal the sum of quarterly earnings per share due to changes in average share calculations. 36

37 E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in millions) CALCULATION OF NET DEBT Mar-14 Dec-13 Sep-13 Jun-13 Mar-13 Dec-12 Sep-12 Jun-12 Mar-12 Dec-11 Sep-11 Jun-11 Mar-11 Cash and Cash Equivalents 3,782 8,941 7,005 6,685 6,555 4,284 3,418 3,506 3,410 3,586 2,750 2,268 3,796 Marketable Securities ,026 Total Cash 3,849 9,086 7,189 6,896 6,581 4,407 3,523 3,556 3,601 4,019 2,979 2,482 4,822 Short-Term Borrowings and Capital Lease Obligations 2,019 1,721 4,204 3,315 2,006 1,275 4,564 3,696 3, ,301 2,336 2,137 Long-Term Borrowings and Capital Lease Obligations 9,298 10,741 10,755 10,765 11,279 10,465 10,502 11,254 11,232 11,736 12,200 12,460 10,114 Total Debt 11,317 12,462 14,959 14,080 13,285 11,740 15,066 14,950 14,825 12,553 15,501 14,796 12,251 Debt (Net of all Cash) 7,468 3,376 7,770 7,184 6,704 7,333 11,543 11,394 11,224 8,534 12,522 12,314 7,429 CALCULATION OF FREE CASH FLOW Year Year Year 1Q Q13 3Q13 2Q13 1Q Q12 3Q12 2Q12 1Q Q11 3Q11 2Q11 1Q11 Cash (Used for) Provided by Operating Activities (2,421) 3,179 5, (2,667) 4,849 5, (1,877) 5,152 4,721 1, (1,484) Less: Purchases of Property, Plant and Equipment 320 1, , , Free Cash Flow (2,741) 1,297 4,853 (168) (400) (2,988) 3,056 4, (2,178) 3,309 4, (1,807) 37

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39 E. I. DUPONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF BASE INCOME TAX RATE TO EFFECTIVE INCOME TAX RATE (UNAUDITED) Base income tax rate is defined as the effective income tax rate less the effect of exchange gains (losses), significant items and non-operating pension/opeb costs. Three months ended March 31, Year ended December 31, Outlook(1) 2013 Actual Effective income tax rate 19.8% 21.8% 21.4% 17.9% Significant items effect and non-operating pension/opeb costs effect 0.2% 3.3% 0.5% 2.6% Tax rate, from continuing operations, before significant items and 20.0% 25.1% 21.9% 20.5% non-operating pension/opeb costs Exchange gains (losses) effect (2) 0.5% (1.7%) 0.1% 0.3% Base income tax rate from continuing operations 20.5% 23.4% 22.00% 20.8% (1) Represents the company's anticipated full year tax rates. (2) For the 2014 outlook, the effect of exchange gains (losses) on the company s full year effective income tax rate reflects actual exchange gains (losses) from the first quarter 2014 only. 39

40 Copyright 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont TM, The miracles of science TM, and all products denoted with or M are trademarks or registered trademarks of E. I. du Pont de Nemours and Company. 40