Market-Driven Science Our Mission: Sustainable Growth—The creation of shareholder and societal value while we reduce To DuPont Shareholders our environmental footprint along the value chains in which we operate. 2008 DuPont Annual Review • Zero-Base All Capital Expenditures. Capital spending will require innovation in a host of technologies across many Despite the economic turmoil, our accomplishments were DuPont Agriculture DuPont Coatings DuPont Electronic DuPont Performance DuPont Safety in 2009 will be reduced by about 20 percent versus 2008. industries. As a market-driven science company, we have many in 2008: & Nutrition & Color Technologies & Communication Materials & Protection We continue to assess each project to determine whether factored these trends into the market-back approach we Technologies • Our Agriculture & Nutrition segment sales grew 16 percent further cuts are warranted, using a “zero-based” approach take in our research and Strategies: Strategies: Strategies: Strategies: Strategies: and underlying pretax operating income grew 24 percent. and raising the bar on project justifi cation. innovation. The current DUPONT CORE VALUES Accelerating growth Further globalize Grow base businesses | Deliver innovative products Leverage market-driven We laid the groundwork for our Y Series soybeans, which global crisis is reshaping • Aggressively Reduce Working Capital. More than 200 • Safety & Health in a strong Ag market operations and accelerate Expand share in Asia | and market-focused science to develop and will be the largest product launch in Pioneer history. many opportunities, environment | Advancing growth in emerging Increase revenue from solutions | Leverage global commercialize new new projects aimed at reducing working capital were • Environmental Stewardship but we expect these and commercializing markets | Deliver new products | Grow capabilities and value products | Differentiate • For the full year, 64 percent of total sales were generated staffed and launched early in 2009. The DuPont Production • Highest Ethical Behavior fundamental needs to new technologies | comprehensive solutions strategic accounts | chain expertise | powerful brands and outside the U.S. As we further diversifi ed our geographic System (DPS), a standardized operational process • Expanding global to customers | Develop Penetrate key markets Accelerate growth in unique value propositions persist. So while we Respect for People mix of businesses, emerging markets grew 13 percent, designed to strengthen our production capability, was leadership position with environmentally emerging markets through market-facing devote maximum effort representing 29 percent of total sales. operating at 18 sites by the end of 2008. Plans are for DPS rapid growth in emerging enhanced technologies Key Products & Services: models | Fulfi ll customer to dealing with the economic downturn, we also are making markets | Capturing value Circuit and component Key Products & Services: needs via supply and to be in place at 300 sites by 2011. This will contribute to a • We delivered $400 million in variable cost reductions. real changes that will enable us to take full advantage of a through differentiated Key Products & Services: materials | Flexographic Engineering polymers | value chain excellence reduction of $1 billion in working capital in 2009. | | | | Benefi ts from our fi xed cost reduction programs were changed global economy when the upturn comes. distribution Continuing Titanium dioxide printing systems Flexible packaging resins gains from productivity Liquid and powder Photovoltaic materials | Industrial resins | Key Products & Services: about $425 million—surpassing our goal of $400 million. Meanwhile, we are sticking with our basic strategies improvements coatings | Coatings and Refrigerants | Surfacing Performance elastomers | Safety and operational Chad Holliday Ellen Kullman We are well on our way to completing our $1.7 billion cost for growth, particularly in areas that offer opportunity A proud heritage with steadfast core values application services materials | Semiconductor Performance fi lms consulting and training | Key Products & Services: productivity program one year ahead of schedule. even in the current downturn. In Agriculture & Nutrition, Now in our 207th year of operation, DuPont has fabrication and packaging Specialty, performance Seeds | Traits | Crop Core Markets: materials | Wire and cable Core Markets: and industrial chemicals | We anticipated economic headwinds in 2008, but the market fundamentals remain strong. While some confronted extraordinary challenges in the past two • For the year, local prices more than offset an increase protection chemicals | Automotive OEM | Collision materials | Fuel cells Automotive | Packaging | DuPont™ Corian® solid year evolved in unexpected ways. The people of DuPont currency headwind is expected in 2009, we see continued centuries. We have paid 417 consecutive quarterly | repair | Paper | Industrial Electrical/electronics | | ™ ® of about 14 percent for energy, raw materials, and Food ingredients surfaces DuPont Kevlar demonstrated remarkable fl exibility and adaptability in growth for this segment. Strong demand also continues dividends to our shareholders—every quarter since the Food quality and safety coatings | Transportation | Core Markets: Construction | Consumer fi b e r | DuPont™ Nomex® transportation. We achieved our fi fth consecutive year Architectural coatings | | durables ™ a turbulent business climate. In the face of economic for our photovoltaic products and Nomex® aramid fi bers. company’s fi rst dividend in the fourth quarter of 1904. Semiconductors fi ber and paper | DuPont of local pricing gains. Core Markets: Plastics Printed circuit boards and Tyvek® protective material developments, we remained confi dent in our market-leading We continue to invest in our R&D pipeline, particularly | 2008 Sales: $6.4 billion The people of our company are inspired by this heritage Production agriculture components | Automotive and other selective barriers global businesses, our cash-generating ability, and our • We advanced products in our R&D pipeline, such as in our high growth, high margin opportunities. Food processing chemicals 2008 Sales: $6.6 billion and industrial electronics | of success. They confronted every obstacle and rose to prudent fi nancial discipline. We quickly assessed the next-generation refrigerants, and we had successful Displays | Packaging | HVAC Core Markets: 2008 Sales: $8 billion changing environment and took swift actions to address commercial launches, such as Rynaxypyr® insecticide. Where we’re headed every challenge in 2008, while continuing to live out the refrigeration | Chemical Construction | Industrial core values that defi ne who we are. They know that in processing industries | safety | Emergency the challenges and to protect shareholder value. When we come out of the current recession, we believe • DuPont Danisco and the University of Tennessee broke the midst of change, our core values are the bedrock Electronic data and response | Military | the world is going to look very different than it did before. telecommunications | Transportation | Industrial We are keenly aware of the impact current, unprecedented ground for an innovative pilot-scale biorefi nery to produce for everything we do at DuPont. Our mission remains Demand for natural resources is increasing, while availability Renewable energy biotechnology | Food | economic conditions are having on our customers, cellulosic ethanol from nonfood biomass feedstocks. sustainable growth, and we are absolutely committed | is decreasing. Longer term, continued growth in demand Oil and gas Healthcare suppliers and DuPont colleagues. We will conduct the to creating value for our shareholders. 2008 Sales: $4 billion for consumer durables, coupled with infrastructure needs in 2008 Sales: $5.7 billion business of our company in a way that highly values all Clear priorities for 2009 large, formerly constrained economies, will have an impact our stakeholders. We know in the long run that is the best In this volatile time we are focusing on the elements within on both natural resources and food. At DuPont, we call this 6% way to serve our shareholders. our control—staying close to customers and dramatically 20% 28% 7% the New Reality. 34% reducing costs—all directed toward driving for cash. We 41% 15% 5% 24% An unprecedented year have clear priorities for 2009, which we entered with a strong Chad Holliday Ellen Kullman 55% The underlying factors creating the New Reality are 28% 43% 32% Chair of the Board Chief Executive Offi cer 35% During the year, we contended with dramatic increases in balance sheet, excellent liquidity, and a favorable cost of population growth, demand for food, climate change, 28% 35% 16% 24% the prices of energy and raw materials. Hurricanes in the borrowing. We intend to emerge from the global recession and energy use. To deal successfully with these challenges March 1, 2009 15% 9% U.S. severely damaged several plants, resulting in signifi cant stronger, faster, and more agile than our competitors. business impact. Global economic shifts became seismic To that end, our actions in 2009 will be guided by with the credit crisis and the deepening global recession. Platform Sales by Region Key: Asia Pacifi c Europe* Latin America U.S. & Canada four directives: Net Sales Earnings Per Share1 Dividend Payments *Includes Europe, Middle East, and Africa DuPont employees seized opportunities in new