05 jim borel
DESCRIPTION
05 Jim BorelTRANSCRIPT
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Jim Borel Executive Vice President Agriculture and Nutrition & Health
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Nutrition & Health (N&H)
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Nutrition & Health 2012 Segment Sales - $3.4B*
*Segment sales includes transfers
Major Product Group Regions
Protein Solutions
33%
Enablers 42%
Health & Protection
25% U.S. &
Canada 34%
EMEA 32%
Asia Pacific 19%
Latin America
15%
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N&H is Strategically Positioned in the Food Value Chain
Source: BCG analysis
Profitability (EBIT margin)
Market size ($B)
Average growth rate
$50
4%
2%
$3,300
10%
4%
$5,400
4%
4%
Input suppliers
Bulk ingredient processors
Specialty ingredient suppliers
Packaged food &
beverage producers
Retailers
$40
12%
6%
Specialty Food Ingredients Are an Attractive Market
$150
20%
6%
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Specialty Food Ingredients Are Growing at 2X GDP
• Supplies the $3 trillion packaged food and beverage market
• 6% secular growth from:
– Population growth
– Rising incomes in the developing world
– Health and wellness
– Food safety & security
– Food loss & waste
Flavors
Colors
Texturants
Acidulants
Emulsifiers
Enzymes
Yeast
Soy protein
Whey protein
Sweeteners Specialty
Oils & Starches
Cultures
$40 Billion Specialty Food Ingredients Market
Global Consumer Trends Will Drive Market Growth
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Our Science is Improving Food Today
…every 2nd ice cream
…every 2nd infant formula
…every 2nd nutrition bar
…every 3rd cheese
…every 4th loaf of bread
We Have a Significant Presence in Specialty Food Ingredients
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Our Products Improve Nutrition and Health and Protect Food
Food Protection Nutrition Solutions Improved Health
• Fiberline™ creates 100% rye bread with the taste/appearance of wheat to stimulate satiety, reduce cholesterol and blood sugar levels
• HOWARU® probiotics help maintain natural immunity and efficient digestion
• Solae® Soy fights against heart disease by lowering blood cholesterol
• BioViaTM natural antimicrobial alternative to chemical preservation against yeast and molds
We Create Innovative Food Solutions
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We Have a Strong Competitive Position
Industry Leading Science
Application Know-How
Relevant Product Breadth and Scale
• Process
– Extraction
– Conversion
– Separation
• Biotechnology
– Genomics
– Molecular biology
– Fermentation
• Health
– Nutrition science
– Immunology
– Microbiology
• Food science
• Region specific formulation knowledge
• Sensory science
• Customer insight and collaboration
• Integrated local sales and application
• 22 Food Application Centers globally
• Emulsifiers
• Texturants
• Cultures
• Probiotics
• Antimicrobial/ Antioxidants
• Food enzymes
• Sweeteners/fibers
• Soy protein
• Food safety diagnostics
• #1 or #2 position in each product segment
Advantaged Route to Market
• Global footprint
• Relationships with local, regional and global food companies
• Open innovation
• Direct customer sales
• Single point of contact
Accelerate Productivity
Our Competitive Advantages will Drive Above Market Growth
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Nutrition & Health Summary
Key Growth Drivers
• Underlying health, wellness and food safety trends
• Target developing markets
• Investment in product and application innovation
• Drive margin expansion through innovation, differential management and productivity
* Segment sales include transfers. ** Excludes non-operating pension/OPEB costs and significant items. See company website for detailed reconciliation of non-GAAP measures.
$1.2
$2.5
$3.4
5%
8% 9%
2010 2011 2012
Sales and Margin Performance
Sales ($B)*
Operating Margins (%)**
Long-Term Growth Targets: Sales 7-9% CAGR with 12-14% Margins
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Agriculture (Ag)
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Agriculture 2012 Segment Sales - $10.4B*
*Segment sales includes transfers
Major Product Group Regions
Corn seeds 48%
Soybean seeds 15%
Other seeds 6%
Herbicides 13%
Insecticides 12%
Fungicides 6%
U.S. & Canada
51%
EMEA 21%
Latin America 19%
Asia Pacific 9%
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Population and Income Growth in the Developing World will Drive Demand
Data Source: United Nations
0
2
4
6
8
10
19
50
19
60
19
70
19
80
19
90
20
00
20
10
20
20
20
30
20
40
20
50
World Population (Billions)
Less developed regions
More developed regions 2030 2020
3.25
2009
1.85
Other
North America
Asia-Pacific
Europe
4.88
Emerging Middle Class (Billions)
3 B
1+B
0.32
0.34
0.66
0.53
0.48
0.33
0.70
1.74
3.23
0.68
0.32
0.65
Ag Productivity is Critical to Feeding the World
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Robust Ag Pipeline Has Consistently Delivered Innovation
2008
2009
2011
2012
2013
2010
2008 Rynaxypyr® Insect Control Picoxystrobin Fungicide
Y Series Soybeans PrecisionPac® Herbicide Delivery System - Canada
Optimum® AQUAmax™ Corn Hybrids Optimum® AcreMax® 1 Insect Protection Optimum® AcreMax® RW Insect Protection
Optimum® AcreMax® and Intrasect® Insect Protection Optimum® AcreMax® Xtra Insect Protection Corn hybrids produced with SPT process Plenish® High Oleic Soybeans Cyazypyr™ Insect Control Penthiopyrad Fungicide
Optimum® AcreMax® XTreme Insect Protection T Series Soybeans
Rynaxypyr® Insect Control Seed Treatment
Seed │ Crop Protection
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Robust Ag Pipeline is Growing Even Stronger
2008
Pre-Launch (Phase 4)
Advanced Development
(Phase 3)
Lepidopteran/Coleopteran Protection DP 4114
Optimum® Intrasect® Insect Protection + Agrisure Viptera® Trait
Soybean - Aphid Protection
Canola - Optimum® GLY™ Trait
Canola - LibertyLink® Trait
Lumigen™ Seed Treatment Technologies (Insect Control)
Soybeans - Asian Soybean Rust Resistance I
Highly active oomycete control, new mode of action
Lumigen™ Seed Treatment Technologies (Disease Control)
Seed │ Crop Protection
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Product Innovation – Corn Insect Protection in Seeds
Products will not be offered for sale or use until products, benefits and concepts receive full regulatory approval.
Time
Inse
ct P
rote
ctio
n, D
ura
bili
ty, C
on
ven
ien
ce, Y
ield
High efficacy insect protection • Comprehensive package against
above and below ground pests • Preserve yield potential and
minimize harvest loss
Herculex® Products
Enhanced yield performance/ extended durability • Higher yield • Simplified breeding • Extended durability
Pipeline Technologies • Optimum® Intrasect® Insect Protection
+ Agrisure Viptera® Trait • Lepidopteran/Coleopteran DP 4114 • New Modes of Action Lepidopteran Protection III • New Modes of Action Coleopteran Protection III
Integrated & reduced refuge • Simplified refuge deployment • Maximized farm yields • Technology preservation
through built in compliance
Optimum® AcreMax® Products
We have Access to Best-in-Class Technology Options
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Product Innovation – Insect Control Solutions in Crop Protection
Rynaxypyr® Insect Control New DuPont Lumigen™
Seed Treatment Technologies Cyazypyr™ Insect Control
• Rynaxypyr® registered in >90 countries and hit ~$750 million in 2012 sales, +30%
• Additional products in insect control portfolio building on the success of Rynaxypyr®
• Setting new standards in performance
• Rynaxypyr® based in soybeans and corn
• Cyazypyr ™ based in canola
• Provides excellent above and below ground insect control and promotes plant vigor
• Targeting high value fruit and vegetable crops and launched successfully as Benevia™ insecticide
• Outstanding performance exceeding farmers’ expectations
• Reduces number of applications while enhancing produce quality and marketable yield
• Anticipating 20 regulatory approvals by the end of 2013
Expecting over $800 million in Sales in 2013
Major 2014 Launches in Brazil, Argentina, US and Canada
Launched in 2012 in Argentina
Insect Soybean
Seed Treatment
Velvetbean Caterpillar
Soybean Looper
Lesser Cornstalk Borer
Grubs
Black Cutworm
Armyworm
Family Targeting > $1 Billion in Annual Sales
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Local Product Solutions Drive Right Product Right Acre
• Customer focused product development
• Elite genetics and native traits
• Biotech traits
• Seed-applied technologies
• Local product advancement places the right product on the right acre
• Collaboration
Comprehensive Product Development for Local Needs
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Route-to-Market Enables Right Product Right Acre
Pioneer has the Superior Route-to-Market
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Whole Farm Profitability Services
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Current services offering
• Field-by-field crop plans
• Planting maps
• Harvest maps
• Crop insurance
• Financial services
• Grain marketing
2013 expansion – tools to deliver additional insights for advanced farmer profitability
Leading Services Today, Expanding for the Future
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Key Growth Markets (millions of hectares harvested)
Corn 44 Soybeans 33 Canola 9
Corn 19 Soybeans 25
Corn 7 Sunflower 13 Oilseed Rape 2
Corn 35
~50% of our Growth over the Next 5 Years Outside of North America
Corn 15 Rice 43
Corn 17
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Agriculture Summary
Key Growth Drivers
• Product and service innovation
• Developing markets
• Strategic investments
• Margin expansion
$7.8
$9.2
$10.4
18% 20% 21%
2010 2011 2012
Sales and Margin Performance
Sales ($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 company website for detailed reconciliation of non-GAAP measures.
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DuPont is Uniquely Advantaged Across the Food Value Chain
• Industry leading businesses with strong momentum
• Leading science capabilities
• Advantaged routes to market
• Strengthened by recent portfolio changes
Nutrition Solutions
• Ingredients/enzymes • Food protection & safety • Animal nutrition
Ag Productivity
• Seed • Crop protection • Seed treatment • Services
Bio-based Industrials
• Biofuels • Bio-materials
Linkages Across Businesses Create Value
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Q&A with Jim, Rik, Paul and Craig
Jim Borel Executive Vice President Agriculture Nutrition & Health
Rik Miller President DuPont Crop Protection
Paul Schickler President DuPont Pioneer
Craig Binetti President DuPont Nutrition & Health
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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 on non-GAAP measures to GAAP are available on the Investor Center of www.dupont.com.
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,” "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 those risk factors 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; and business or supply disruptions. 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 www.dupont.com.
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Agrisure® and Agrisure Viptera® are registered trademarks of, and used under license from, a Syngenta Group Company. Agrisure® technology incorporated into these seeds is commercialized under a license from Syngenta Crop Protection AG. Herculex® Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. ® Herculex and the HX logo are registered trademarks of Dow AgroSciences LLC. Liberty®, LibertyLink and the Water Droplet Design are trademarks of Bayer. ®YieldGard, the YieldGard Corn Borer design and Roundup Ready are registered trademark used under license from Monsanto Company. Solae® is a registered trademark of Solae, LLC. Howaru®, and BioVia™ are trademarks and registered trademarks of Danisco A/S Optimum®, AcreMax® Intrasect®, Plenish® and Field 360™ are trademarks and registered trademarks of Pioneer Hi-Bred International, Inc. The DuPont Oval Logo is a registered trademark of DuPont.®, SM, TM Trademarks and service marks of Pioneer. © 2013 PHII.