26
1 Jim Borel Executive Vice President Agriculture and Nutrition & Health

05 Jim Borel

Embed Size (px)

DESCRIPTION

05 Jim Borel

Citation preview

Page 1: 05 Jim Borel

1

Jim Borel Executive Vice President Agriculture and Nutrition & Health

Page 2: 05 Jim Borel

2

Nutrition & Health (N&H)

Page 3: 05 Jim Borel

3

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%

Page 4: 05 Jim Borel

4

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%

Page 5: 05 Jim Borel

5

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

Page 6: 05 Jim Borel

6

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

Page 7: 05 Jim Borel

7

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

Page 8: 05 Jim Borel

8

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

Page 9: 05 Jim Borel

9

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

Page 10: 05 Jim Borel

10

Agriculture (Ag)

Page 11: 05 Jim Borel

11

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%

Page 12: 05 Jim Borel

12

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

Page 13: 05 Jim Borel

13

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

Page 14: 05 Jim Borel

14

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

Page 15: 05 Jim Borel

15

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

Page 16: 05 Jim Borel

16

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

Page 17: 05 Jim Borel

17

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

Page 18: 05 Jim Borel

18

Route-to-Market Enables Right Product Right Acre

Pioneer has the Superior Route-to-Market

Page 19: 05 Jim Borel

19

Whole Farm Profitability Services

10

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

Page 20: 05 Jim Borel

20

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

Page 21: 05 Jim Borel

21

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.

Page 22: 05 Jim Borel

22

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

Page 23: 05 Jim Borel

23

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

Page 24: 05 Jim Borel

24

2

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.

Page 25: 05 Jim Borel

25

Page 26: 05 Jim Borel

26

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.