2009 DUPONT ANNUAL REVIEW Declines Hit Us Very Our Core Values Which Are the Absolute Bedrock of Dupont
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OUR MISSION: SUSTAINABLE GROWTH To DuPont Shareholders The creation of shareholder and societal value while we reduce our environmental footprint The Needs of the World Drive Our Science and Marketing Tyvek ® protective apparel is used by workers in a wide As we entered 2009, the world’s economies remained in the • Our engine of innovation never slowed down. We along the value chains in which we operate. Global population growth and associated growth in range of environments. Our Building Innovations materials grip of the global recession and worldwide fi nancial crisis. continued research and development investment incorporate protection into new and existing structures. during the recession at the same level as pre-recession. the middle class are creating distinct needs throughout At DuPont, we responded by focusing on what we could the world. These needs, which we call megatrends, are Our Sustainable Solutions business offers consulting DuPont Agriculture Mission: cost and working capital We introduced more than 1,400 new products in 2009— Accelerate earnings and productivity while control. We put in place directives aimed at maximizing providing DuPont the opportunity to bring our unmatched and training that help our clients improve the safety and & Nutrition or about 60 percent more than in 2008—and fi led 2,086 cash growth through making selective growth margin, dramatically reducing spending, zero-basing science to the marketplace to create game-changing effectiveness of their organizations and operations. We Businesses: U.S. patent applications, the most ever in a single year Pioneer Hi-Bred | cost and working capital investments, providing capital expenditures and solutions in constant collaboration with our customers also provide unique technology that supplies clean air, for our company. | productivity and innovative materials aggressively reducing clean fuel and clean water to our industrial customers. Crop Protection and key partners. Nutrition & Health selected investments in and expert applications working capital. We stayed • We committed to our shareholders to provide greater higher growth markets, development that enhance • Growth in emerging markets—We’re taking the power of close to our customers transparency into our businesses and reoriented our Each megatrend presents opportunities for DuPont’s Mission: regions, and technologies customers’ product DuPont innovation, partnering with local customers and reporting segments. We held an investor day in November, collaborative science and solutions: To grow aggressively to achieve Top Quartile performance, improve and took advantage of the putting it to work in China, India, Brazil and other emerging and received positive responses from investors about our • Increase food production—Estimates are that the world through innovative performance among sustainability and reduce recessionary environment economies. We expect our strategy of putting decision- peer global specialty total system cost. growth plans, as will have to nearly double food production by 2050. We products and services to respond to their needs making responsibility and development capability closer that help the world chemical manufacturers. for product differentiation. well as the quality DUPONT CORE VALUES are committed to working closely with farmers around the increase the quantity, Core Markets: to our customers in emerging markets will enable DuPont | | We did not let economic and depth of the • Safety & Health world to signifi cantly increase corn and soybean yields quality, safety and Core Markets: Automotive Packaging to exceed trend-line growth in these markets in 2010 and | | | turmoil distract us from information we over the next decade with seeds that are higher yielding, sustainability of our Construction Specialties Electrical/Electronics • Environmental Stewardship achieve $12 billion in revenue by 2012. Industrials & Chemicals Construction | shared with them. more drought tolerant, more nitrogen-use effi cient and food supply. creating and protecting • Highest Ethical Behavior Consumer Durables shareholder value. more resistant to insects and disease. Other DuPont • Respect for People Market-driven science will continue to be the cornerstone of Core Markets: DuPont Performance We were able to solutions include herbicides, insecticides and fungicides, what sets DuPont apart. No competitor collaborating with Production Agriculture | Coatings DuPont Safety There was no established achieve our goals and nutrition and health products, and packaging materials our customers and partners has DuPont’s power to innovate Food and Nutrition Products Mission: & Protection playbook for a year take bold actions because of the exceptional commitment that keep food safe and fresh, longer. in response to the needs of the world. We face the future Deliver earnings and Businesses: like 2009. Like many of DuPont employees around the world. They stayed DuPont Electronics & Protection Technologies | • Decrease dependence on fossil fuels—DuPont is uniquely with confi dence because the people of DuPont have always cash growth through other companies, focused on results through two restructurings and a major Communications Building Innovations | been able to take science and technology, collaborate and cost and working capital unprecedented volume reorganization of the company. They continued to advance positioned to address the rising demand for secure, Mission: productivity while making Sustainable Solutions create solutions to market needs, and turn innovation into 2009 DUPONT ANNUAL REVIEW declines hit us very our core values which are the absolute bedrock of DuPont. environmentally sustainable and affordable energy Focused growth through selected growth invest- Ellen Kullman sources. We have a strong record in energy conservation. profi ts for our customers and our shareholders. supplying enabling ments, so that Top Quartile Mission: hard. But we did what We deeply appreciate their extraordinary efforts in 2009. To grow aggressively DELIVERING SOLUTIONS. DELIVERING GROWTH. We have products that help improve energy effi ciency in materials and systems fi nancial performance we said we would do. Our actions positioned us well for That’s our formula for success, and we will continue to by being the global for photovoltaics, among global industry 2010, ready to meet the challenge of delivering earnings building construction and provide lightweight solutions innovation leader in Delivering Growth Through 2012 build on it. electronics, fl at panel peers is achieved. ® ® in the transportation industries, and a growing suite of growth despite declining income from Cozaar and Hyzaar displays and advanced engineered products, We will benefi t in 2010 from anticipated gradual recovery pharmaceuticals. solutions across alternative energy applications including printing. Core Markets: services and systems in developed markets and a more rapid acceleration in | novel biofuel technology and photovoltaic materials. Automotive OEM Collision that protect lives, the emerging markets. We expect to grow faster than market Core Markets: Repair | Industrial Coatings environment, and Firm Commitments, Dynamic Action rates over the next few years due to our unique portfolio, • Protect people, assets and the environment—We continue Ellen Kullman Consumer Electronics | critical processes and Throughout 2009, we moved with urgency and discipline global positioning, and the combined impact of our to develop new capabilities for products like our DuPont™ Chair of the Board and Advanced Printing | DuPont Performance provide sustainable ® ® Photovoltaics | Displays building solutions. to meet the directives we set for ourselves. We emphasized productivity and differential business management. Kevlar and Nomex advanced fi bers which are recognized C h i e f E x e c u t i v e O f fi c e r Materials Businesses: cash generation which is critical to maintaining our fi nancial globally for applications in protective apparel for law Core Markets: DuPont Performance strength. We generated $3.4 billion in free cash fl ow, and We will hold ourselves accountable for the following: enforcement, fi rst responders and the military. DuPont™ March 1, 2010 Performance Polymers | Industrial Personal Chemicals • Over the period 2009 to 2012, our target compound Packaging & Industrial Protection | Construction | delivered on our goal to offset lower cash earnings with Businesses: Polymers Industrial | Military & Law capital productivity. We achieved $1.1 billion in fi xed cost annual growth rate (CAGR) for sales is about 10 percent, Titanium Technologies | Enforcement productivity—$750 million of which will be permanent. and for earnings, our target CAGR is about 20 percent. Chemicals & Mission: We lowered the breakeven point for our company which Fluoroproducts Deliver earnings and • We will deliver another $1 billion in fi xed cost productivity cash growth through gives us added strength for growth in 2010. Net Sales Earnings Per Share1 Dividend Payments and $1 billion in working capital productivity over the next We delivered these results through creative and dynamic three years. Cost productivity is now a way of life at DuPont. This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including actions: statements about the company’s strategy for growth, product development, market position, expected expenditures