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Science Meets Demand. Is Collaboration

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Science Meets Demand. Is Collaboration Our purpose: These strategic moves build on scientific strengths and increase growth in higher To DuPont Shareholders: margin businesses as we continue to reshape our portfolio. DuPont is a science company. We work collaboratively to find sustainable, innovative, market-driven solutions to solve some of the world’s biggest challenges, making lives better, safer and healthier for people everywhere. Focus on execution During the past four years, DuPont has become a stronger company during a time of tremendous change and volatility in world markets. Our science has accelerated discovery, innovation, and expansion in high growth industries and new geographies. We encountered sharper-than-expected demand declines in the titanium dioxide DuPont Agriculture DuPont Industrial DuPont Performance DuPont Safety Biosciences Chemicals & Protection We reshaped our company with strategic moves, and our focus on execution has taken performance to new levels. We entered and photovoltaic markets. As a result, full-year revenue growth and earnings in Businesses: Pioneer | Crop Protection Core Markets: Businesses: Businesses: 2013 confident and determined to achieve our goals and create value for our shareholders. 2012 did not meet our expectations. However, DuPont is strong and resilient. Industrial Enzymes | Biobased Titanium Technologies | Chemicals & Protection Technologies | Building We sustained our positive momentum of the past four years and raised our stock Core Markets: Materials Fluoroproducts Innovations | Sustainable Solutions Seeds | Agricultural Chemicals Science meets demand— globally dividend. We have defined the right business strategies for growth, and we have Core Markets: Core Markets: created an intense focus on execution. We built stronger market positions for our DuPont Nutrition Industrials & Chemicals | Construction | Industrial | Construction | Military & Science is at the heart of everything we do at DuPont, and when DuPont science meets the demands of the market, the Ellen Kullman discusses the latest PCs at the DuPont Electronics products and aggressively expanded our global reach by swiftly increasing our size Innovation Center in Taiwan. & Health Specialties | Plastics | Transportation Law Enforcement | Transportation | result is innovation. We had a record year for new product introductions in 2012. We also received 935 U.S. patent grants— & Communications Consumer Core Markets: the most in DuPont history—and for the second year in a row, we set a new record for our company. and presence in China, India, and Brazil. Core Markets: Food & Nutrition Products DuPont Performance For several years, I have reported to you our success in achieving ambitious productivity targets. Last year was no different. Photovoltaics | Consumer Electronics | Materials Every DuPont business is supported by one or more of DuPont’s three strategic “pillars” of scientific capability: agriculture Advanced Printing | Displays Fixed cost and working capital productivity benefits were each about $400 million, surpassing our $300 million targets. Much of Businesses: and nutrition, industrial bioscience, and advanced materials. In each of those fields, we are a world leader with results to this progress has been made possible by disciplined processes — DuPont Integrated Business Management (DIBM), which Performance Polymers | Packaging show for it. In agriculture, we have introduced thousands of new products, expanded globally, and developed an outstanding optimizes the business supply chain to maximize efficiency in working capital, and the DuPont Production System (DPS), which & Industrial Polymers research pipeline. We are now a major global player in food and nutrition. We are also a leader in industrial bioscience helps run our manufacturing sites better and more productively. As always, when we see opportunity to improve efficiency and Core Markets: and broke ground for a cellulosic ethanol biorefinery that will be one of the first and largest of this type of facility in the Transportation | Industrial | Packaging | world. In our advanced materials businesses, we developed new applications for lightweighting automobiles, introduced enhance the competitiveness of our businesses, we take it. We announced a restructuring program in 2012 that will result in pre-tax Electrical/Electronics cost savings of approximately $300 million in 2013, increasing to $450 million per year in subsequent years. efficiency-boosting products for the photovoltaic industry, and brought to market the next generation of DuPont™ Kevlar® while adding global capacity. I remind all our stakeholders that we are “committed to zero” incidents with respect to our core values. We adhere to these values with SAFETY & HEALTH the strongest resolve. They have sustained our company for nearly 211 years of growth and will remain the foundation of our success. ENVIRONMENTAL Guided by our core values, DuPont will drive innovation and penetrate fast-growing markets in rapidly developing economies. We will Collaboration speeds innovation dUPONT NET SALES EARNINGS PER SHARE1 DIVIDEND PAYMENTS STEWARDSHIP find sustainable, innovative, market-driven solutions for global challenges as we work to make lives better, safer, and healthier for (DOLLARS IN BILLIONS) (DOLLARS) (DIVIDENDS PER SHARE IN DOLLARS) We believe that the most successful model for connecting science to the marketplace people everywhere. Science meets Demand. is collaboration. We work with our customers and partners to develop new solutions RESPECT CORE FOR PEOPLE $40 $4.00 for specific local needs. One way we accomplish this is through our DuPont Innovation HIGHEST $34.8 $3.55 Centers which are located throughout the world. We added centers in the U.S., Brazil, $35 $33.7 $3.50 $2.00 $3.33 Mexico, Switzerland, and Russia—bringing the total to ten. ValUeS ETHICAL BEHAVIOR $1.64 $1.70 $30 $ 3.00 $2.94 $27.7 $26.2 $2.62 $1.50 $1.46 These centers enable customers and partners to connect with more than 150 DuPont $25 $2.50 $1.40 $22.7 research locations and more than 10,000 DuPont scientists and engineers worldwide. Through this real-time interaction, we identify Ellen Kullman $1.02 $20 $2.00 $1.87 $1.00 market trends, develop innovative solutions, and increase the speed of creating and delivering new products. Customers obtain Chair of the Board & $0.81 $15 $1.50 1st dividend paid tailor-made solutions to unmet needs, quickly. Chief Executive Officer $0.50 $0.50 $0.46 March 1, 2013 $10 $1.00 During 2012, I visited several of our Innovation Centers. I met with customers and partners, and engaged with collaborating teams. $5 $0.50 $0.00 In those interactions I could feel the genuine excitement of our customers with their real-time access to the totality of DuPont’s 10 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 1904 1980 1985 1990 1995 2000 2005 2010 2012 science capability. New and creative commercial opportunities are emerging at all our DuPont Innovation Centers. INNOVATION 1 From continuing operations before significant items. CENTERS Strategic moves build on science strengths Mexico city, Mexico In 2011, we acquired Danisco, a Danish company with businesses in food ingredients, enzymes, and biomaterials, for This publication contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “believes,” “intends,” “estimates” or other words of similar meaning. All statements that troy, U.S. address expectations or projections about the future, including statements about the company’s growth strategy, product development, regulatory approval, market position, anticipated benefits of acquisitions, outcome of $7 billion. In 2012, we completed the integration of Danisco’s businesses and created two world-class business segments— contingencies, 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 DuPont Nutrition & Health and DuPont Industrial Biosciences. The resulting synergies, both in the laboratory and in the PaUlinia, Brazil 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 market, represent tremendous new growth potential for our company. Meyrin, Switzerland 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 MoScow, Russia 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; inability to protect and enforce the company’s intellectual property rights; and integration of acquired businesses and completion of divestitures of underperforming or non-strategic assets or businesses. The company undertakes no In 2012, we acquired our partner’s 28 percent interest in Solae, a soy protein food ingredients leader. This investment in Solae, PUne, india duty to update any forward-looking statements as a result of future developments
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