DuPont Fact Sheet
- 1. $1B $3B $5B $7B $10B $13B 750 800 850 900 950 1,000 2009 2010 2011 2012 2013 2014 October NumberofShares(MM) Cumulative Dividends Cumulative Buybacks Basic Shares Outstanding Building Higher Growth, Higher Value DuPont Is A Science Company Driven By Innovation, Execution, and Global Reach $1.0B $2.8B $1.2B $0.8B $2.2B $3.6B 2008 2013 DELIVERING SUPERIOR OPERATING PERFORMANCE… …GENERATING SUPERIOR RETURNS FOR SHAREHOLDERS… …WHILE EXECUTING ON A CLEAR AND SUSTAINABLE GROWTH STRATEGY Segment Adjusted Operating Earnings(2) Segment Sales(1) 8% Adj. OperatingMarginImprovement Adj. OperatingEarningsAfter-TaxGrowth 2008–2013 Change in Adjusted Operating Margin(2) (excl. Perf. Coatings, Perf. Chemicals, Pharma and Other) Adjusted Operating Earnings After-Tax (ex. Perf. Coatings, Perf. Chem. & Pharma) Perf. Chem. & Pharma Operating Earnings After-Tax 20% 12% dividend growth; $5B share repurchase program announced on 1/28/2014, with $3B remaining ThreeClearStrategicPriorities (excl. Perf. Coatings, Perf. Chemicals, Pharma and Other) Agriculture & Nutrition Extend our leadership Advanced Materials Strengthen and grow our leading position Bio-Based Industrials Develop world- leading industrial biotechnology businesses 180% Growth(3) SegmentSales& SegmentAdj. Operating EarningsGrowth(2008–2013 CAGR) 650 bps Agriculture Electronics & Communications Industrial Biosciences Nutrition & Health Performance Materials Safety & Protection Solutions DuPontInnovationPlatform 24,000PATENTSWORLDWIDE&20,000PATENTSPENDING(2013) “TOP100GLOBALINNOVATORS”–THOMPSONREUTERS,2013 “#1INNOVATOR”6THCONSECUTIVEYEAR–PATENTBOARD,2013 Global Market Insights Science Technical Capabilities Productivity& KeyGrowthDrivers MARKET-DRIVEN INNOVATION PLATFORM $10B of 2013 Sales (28%) from products introduced in last 4 years GLOBAL PLATFORM, GLOBAL REACH 10,000+scientists and engineers, 90+ countries served TRANSFORMATIONAL NEW BIO-BASED BUSINESSES capitalizing on unique combination of scientific capabilities ENHANCED PORTFOLIO FOR GROWTH AND STABILITY acquired growth drivers, separated cyclical businesses OPERATIONAL REDESIGN – “FRESH START” executing on a $1B cost redesign program TotalShareholderReturn (Dec 31, 2008 – Dec 31, 2014) 266% 133% 214% 159% 153% DuPont Proxy Peers S&P Chemicals S&P 500 S&P Materials DuPont (5) (6) (7) (4) 17% 10% 11% 14% 7% (1-Year) 78% 68% 80% 75% 54% (3-Year) Ending Dec 31, 2014 CapitalReturnedto Shareholders
- 2. The prior page includes company information that does not conform with generally accepted accounting principles (GAAP). Management believes the use of these non-GAAP measures is meaningful to investors because they provide insight with respect to operating results of the company and additional metrics for use in comparison to competitors. These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures used 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 are available on the Investor Center of www.dupont.com. Reconciliations of non-GAAP measures to GAAP are also included herein. FORWARD LOOKING STATEMENTS This document contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “believes,” “intends,” “estimates,” “anticipates” or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, regulatory approval, market position, anticipated benefits of recent acquisitions, timing of anticipated benefits from restructuring actions, outcome of contingencies, such as litigation and environmental matters, expenditures and financial results, are forward looking statements. Forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company’s control. Some of the important factors that could cause the company’s actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; significant litigation and environmental matters; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, weather events and natural disasters; ability to protect and enforce the company's intellectual property rights; successful integration of acquired businesses and separation of underperforming or non-strategic assets or businesses and successful completion of the proposed spinoff of the Performance Chemicals segment including ability to fully realize the expected benefits of the proposed spinoff. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information. ADDITIONAL INFORMATION AND WHERE TO FIND IT DuPont intends to file a proxy statement with the U.S. Securities and Exchange Commission (the "SEC") with respect to the 2015 Annual Meeting. DUPONT STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ ANY SUCH PROXY STATEMENT, THE ACCOMPANYING WHITE PROXY CARD AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. DuPont, its directors, executive officers and other employees may be deemed to be participants in the solicitation of proxies from DuPont stockholders in connection with the matters to be considered at DuPont’s 2015 Annual Meeting. Information about DuPont’s directors and executive officers is available in DuPont’s proxy statement, dated March 14, 2014, for its 2014 Annual Meeting. To the extent holdings of DuPont’s securities by such directors or executive officers have changed since the amounts printed in the 2014 proxy statement, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with DuPont’s 2015 Annual Meeting. Stockholders will be able to obtain any proxy statement, any amendments or supplements to the proxy statement and other documents filed by DuPont with the SEC free of charge at the SEC's website at www.sec.gov. Copies will also be available free of charge at DuPont’s website at www.dupont.com or by contacting DuPont Investor Relations at (302) 774-4994. Year Year Year 2013 2011 2008 Total Segment Sales (a) 36,046 34,087 26,499 Less: Performance Chemicals (b) 6,932 8,055 6,245 Less: Other 6 40 160 Total Segment Sales (excluding Performance Chemicals and Other) 29,108 25,992 20,094 (a) Segment sales includes transfers. SEGMENT ADJUSTED OPERATING EARNINGS Segment Pre-tax Operating Income (PTOI) (GAAP) (c) 5,369 5,881 3,373 Less: Performance Chemicals PTOI (b) 941 2,162 619 Less: Other/Pharma PTOI (340) (55) 839 Less: Corporate Expenses (d) 605 496 479 Add: Significant Items (e) 487 383 466 Segment Adjusted Operating Earnings (excluding Performance Chemicals and Other/Pharma) (f) (Non-GAAP) 4,650 3,661 1,902 (b) Prior periods reflect the reclassifications of Viton® fluoroelastomers from Performance Materials to Performance Chemicals. (e) Represents significant items included in Segment PTOI, excluding those related to Performance Chemicals and Other/Pharma. E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (d) Represents total corporate expenses excluding significant items, an estimate of DuPont Performance Coatings residual costs and an estimate for an amount that would be allocated to Performance Chemicals. (f) Segment adjusted operating margin (non-GAAP) is based on total segment sales and segment adjusted operating earnings, excluding Performance Chemicals and Other/Pharma. (dollars in millions) SEGMENT SALES (c) Segment PTOI is defined as income (loss) from continuing operations before income taxes excluding non-operating pension and other postretirement employee benefit costs, exchange gains (losses), corporate expenses and interest. Year Year 2013 2008 Income From Continuing Operations After Income Taxes (GAAP) 2,863 2,083 Add: Significant Items Charge - After-tax 423 378 Add: Non-Operating Pension & OPEB Costs / (Credit) - After-tax 360 (250) Less: Net Income Attributable to Noncontrolling Interests 14 4 Less: Pharma Operating Earnings - After-tax (a) 21 666 Less: Performance Chemicals Operating Earnings - After-tax (b), (c) 804 537 Adjusted Operating Earnings - After-tax (excluding Performance Chemicals and Pharma) (Non-GAAP) 2,807 1,004 RECONCILIATION OF DILUTED EPS GAAP EPS from continuing operations 3.04 2.28 Less: Performance Chemicals (b),(c) 0.80 0.54 Less: Pharma (a) 0.02 0.73 Add: Non-Operating Pension & OPEB Costs / (Credits) 0.39 (0.28) EPS (excluding Pharma and Non-Operating Pension & OPEB Costs) (Non-GAAP) 2.61 0.73 (a) Pharma operating earnings assumes a 35% tax rate. E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in millions, except per share) (b) Performance Chemicals operating earnings assumes a base income tax rate from continuing operations of 20.8% and 20.4% for 2013 and 2008, respectively. ADJUSTED OPERATING EARNINGS AFTER INCOME TAXES (c) Prior periods reflect the reclassifications of Viton ® fluoroelastomers from Performance Materials to Performance Chemicals. Year Year 2013 2008 Income From Continuing Operations After Income Taxes (GAAP) 2,863 2,083 Add: Significant Items Charge - After-tax 423 378 Add: Non-Operating Pension & OPEB Costs / (Credit) - After-tax 360 (250) Less: Net Income Attributable to Noncontrolling Interests 14 4 Less: Pharma Operating Earnings - After-tax (a) 21 666 Less: Performance Chemicals Operating Earnings - After-tax (b), (c) 804 537 Adjusted Operating Earnings - After-tax (excluding Performance Chemicals and Pharma) (Non-GAAP) 2,807 1,004 RECONCILIATION OF DILUTED EPS GAAP EPS from continuing operations 3.04 2.28 Less: Performance Chemicals (b),(c) 0.80 0.54 Less: Pharma (a) 0.02 0.73 Add: Non-Operating Pension & OPEB Costs / (Credits) 0.39 (0.28) EPS (excluding Pharma and Non-Operating Pension & OPEB Costs) (Non-GAAP) 2.61 0.73 (a) Pharma operating earnings assumes a 35% tax rate. E. I. DU PONT DE NEMOURS AND COMPANY AND CONSOLIDATED SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (dollars in millions, except per share) (b) Performance Chemicals operating earnings assumes a base income tax rate from continuing operations of 20.8% and 20.4% for 2013 and 2008, respectively. ADJUSTED OPERATING EARNINGS AFTER INCOME TAXES (c) Prior periods reflect the reclassifications of Viton ® fluoroelastomers from Performance Materials to Performance Chemicals. (1) Segment sales include transfers. CAGR is calculated excluding Performance Coatings, Performance Chemicals and Other (2) Segment adjusted operating earnings and margins are calculated using segment pre-tax operating income (GAAP) excluding significant items; calculations included certain corporate expenses and excluded adjusted operating earnings of Performance Coatings, Performance Chemicals, Pharma and Other. See non-GAAP reconciliations above (3) Adjusted operating earnings after-tax is defined as income from continuing operations after-tax (GAAP) excluding non-operating pension/OPEB costs and significant items. Reconciliations of non-GAAP measures to GAAP are included above Source: Datastream as of 12/31/2014, Bloomberg, Capital IQ, FactSet (4) Proxy Peers and S&P Indices are USD market cap-weighted and assume dividends are re-invested at the closing price applicable on the ex-dividend date (5) Proxy Peers consists of 3M, Air Products, Baxter Intl, Boeing, Caterpillar, Dow, Emerson, Honeywell, Ingersoll Rand, Johnson Controls, Johnson and Johnson, Kimberly Clark, Merck, Monsanto, Procter and Gamble, Syngenta AG, and United Technologies (6) S&P Chemicals in 2014 consists of Airgas, Air Products, CF Industries, Dow, DuPont, Eastman Chemical, Ecolab, FMC, IFF, LyondellBasell, Monsanto, Mosaic, PPG, Praxair, Sherwin-Williams, and Sigma-Aldrich (7) S&P Materials in 2014 consists of Air Products, Airgas, Alcoa, Allegheny Technologies, Avery Dennison, Ball, Bemis, CF Industries, Dow Chemical, DuPont, Eastman Chemical, Ecolab, FMC, Freeport-McMoRan, IFF, International Paper, LyondellBasell, Martin Marietta Materials, MeadWestvaco, Monsanto, Mosaic, Newmont Mining, Nucor, Owens Illinois, PPG, Praxair, Sealed Air, Sherwin-Williams, Sigma-Aldrich, and Vulcan Materials