du pont 4Q08 Conference Call Slides

DuPont 4Q 2008 Earnings Conference Call

January 27, 2009

The contents of these slides and web site pages are protected under copyright. Any reproduction, copy, translation or use in whole or in part of any content, graphic or information depicted herein requires the prior written approval of E. I. du Pont de Nemours and Company. © 2009 DuPont. All rights reserved.

2

© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.

Regulation GThe 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 the company’s fourth quarter earnings news release dated January 27, 2009, which will be furnished to the SEC on Form 8-K. Reconciliations of non-GAAP measures to GAAP results are available on the Investor Center website at www.dupont.com.

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 "expects," "anticipates,” "plans," "intends," "projects," and "indicates.” 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 economic conditions, competitive pressures, challenges associated with research and development, market acceptance of new products, and regulatory approval. We urge you to review DuPont's SEC filings, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, for a discussion of some of the factors which could cause actual results to differ materially. The Company does not undertake to update any forward-looking statements as a result of future developments or new information.

Forward Looking Statements

3


4Q & Full Year 2008 Financial Highlights$ Billions Except EPS

* Excludes significant items. See Schedule B in news release for a list of significant items. See Schedule C in news release for detailed reconciliations of non-GAAP measures.

4Q Change 2008 ChangeEPS

Reported ($.70) $2.20Underlying* ($.28) (149%) $2.78 (15%)

Segment Pre-Tax Operating Income/(Loss)*

($.1) (106%) $4.4 (14%)

Consolidated Net Sales $5.8 (17%) $30.5 4%Volume (20%) (5%)

Local prices 7% 7%

Currency impact (3%) 3%

Portfolio Chg & Other (1%) (1%)

4Q08 4Q07 2008 2007Base Tax Rate 45.2% 17.9% 20.4% 23.9%

4


Global Sales Regional Highlights

4Q 2008 Sales Distribution 4Q 2008 Sales Growth

*Refer to the company’s website for a definition of ‘emerging markets’.

U.S.34%

Canada3%

LatinAmerica

15%

DevelopedEurope

23% EmergingEMEA

6%

EmergingAsia

9%

DevelopedAsia10%

Region %

(17)

U.S. (15)

(17)

(16)

(19)

Emerging EMEA (26)

(10)

Emerging Asia

Latin America

Worldwide

Non-U.S.

Emerging Markets *

5


Global Sales Segment Highlights*

4Q 2008 Sales Distribution 4Q 2008 Sales Growth

PM21%

S&P22% Ag &

Nutrition21%

C&CT22%

E&CT14%

Segments Total%

USD Price Vol.

Port-folio Chg.

Ag & Nutrition (2) 8 (9) (1)

Coatings & ColorTechnologies (21) 1 (22) 0

Electronic & CommunicationTechnologies

(13) 1 (15) 1

Performance Materials (30) 3 (32) (1)

Safety & Protection (10) 7 (15) (2)

*Segment sales includes intercompany transfers

6


-$0.80

-$0.40

$0.00

$0.40

$0.80

$1.20

4Q07 Local Price VariableCosts

Volume LowerCapacity

Utilization

Fixed Costs Currency Taxes ExchangeLoss

Other 4Q08

* Reported 4Q07 EPS of $.60 includes a $.03 per share benefit for significant items.** Reported 4Q08 EPS loss of $.70 includes a $.42 per share charge for significant items.

See schedule B in the news release for a list of significant items.

4Q 2008 EPS Waterfall

$.60Reported

EPS*

$.57Underlying

EPS

$0.02

$0.44 ($0.48)

($0.07)

($0.55)

$0.09 ($0.04) ($0.05)

($0.21)($.28)

Underlying EPS

($.70)Reported

EPS**

1/26/2009 DUPONT CONFIDENTIAL

7

Strong Balance Sheet

Ample liquidity• $3.7B in cash & investment

12/31/08, ~$.3B in CP, $2.7B in untapped credit lines

Low funding cost• A/A2 Long Term Credit Rating &

A1/P1 Short Term Credit Rating

Taking actions to maintain our strong position $0

$2

$4

4Q07 1Q08 2Q08 3Q08 4Q08

$ Bi

llion

0%

4%

8%

Avg

Cos

t of C

P Bo

rrow

ing

CP Balance CP Rate

8


2009 Earnings & Cash Guidance

Full Year Outlook

1Q EPS Outlook

$2.78

$0

$1

$2

$3

2008 2009E

$1.31

$0.00

$0.50

$1.00

1Q08 1Q09E

$2.00-$2.50

$.50-$.70Actions

• Deliver cost and capital productivity • Capture growth & value; agriculture

markets • Disciplined pricing on science-based

offerings• Leveraging our leading positions in

multiple end markets

Challenges• Global economic conditions & visibility in

many end markets • Pension non-cash earnings impact• Currency

2009 $2.5 Billion in Free Cash Flow Confirmed

9


($170)

($100)

($30)

PTOI (84%)*

4Q08 Segment Highlights 4Q08 Segment Highlights

Sales (2%)

Ag & NutritionAg & Nutrition

Strong Latin American season closes out 2008; Robust start to North American season

4Q08 Results+ Strong pricing+ Seed market share gains in Latin America– Crop protection seasonal patterns– Growth investments in seed– Commodity and other raw material costs

1H09 Outlook + Strong global seed volume and price+ Rynaxypyr® sales– Currency– Commodity prices and continued growth investments

$800

$1,000

$1,200

$1,400

4Q084Q07 4Q084Q07

* See schedule C and D in the news release for reconciliation of non-GAAP measures. 4Q07 PTOI included a $15 million gain from an asset divestiture.

10


4Q08 Segment Highlights 4Q08 Segment Highlights Coatings & Color TechnologiesCoatings & Color Technologies

Sales (21%)

4Q08 Results+ Titanium dioxide and refinish products global price– Global motor vehicle production (19%) **– Global destocking – Raw material & transportation cost– Low capacity utilization

1Q09 Outlook+ Cost reduction / working capital management – Global motor vehicle production (28%) **– Low capacity utilization & raw material costs

Unprecedented demand contraction hurts 4Q;Continued weakness in 1Q

$600

$1,000

$1,400

$1,800

4Q084Q07-$100

$0$100$200$300

4Q084Q07

PTOI (130%)*

* See schedule C and D in the news release for reconciliation of non-GAAP measures. * * Source: CSM WW Inc

11


4Q08 Results+ Strong sales of Tedlar® into photovoltaics+ Pricing primarily in fluoroproducts– Global slowdown; most markets & regions– Low capacity utilization & raw material costs

1Q09 Outlook + Cost actions & inventory management– Demand more challenging sequentially & YOY

electronics & fluoropolymers– Low capacity utilization & raw material costs– Currency

Sharp global downturn affects 4Q; Challenges continue in 1Q

Electronic & Communication TechnologiesElectronic & Communication Technologies

Sales (13%) PTOI (94%)*

$600

$800

$1,000

4Q084Q07$0

$80

$160

4Q084Q07


* See schedule C and D in the news release for reconciliation of non-GAAP measures. 4Q07 PTOI included a $28 million gain from a land sale

12


4Q08 Results+ Fixed cost reductions+ Orange, TX plant site polymer units repaired– Weak demand in most major markets and regions– Product availability due to hurricane impact– Feedstock costs and low capacity utilization

1Q09 Outlook+ Raw material price decline start to impact late 1Q+ Operations/supply chain restoration post hurricane+ Cost reduction / working capital management– Motor vehicle demand– Global industrial demand down sequentially

Rapid demand decline; Intense focus on cost and capital

Performance MaterialsPerformance Materials

Sales (30%) PTOI (169%)*

$600

$1,000

$1,400

$1,800

4Q084Q07

-$200-$100

$0$100$200

4Q084Q07


* See schedule C and D in the news release for reconciliation of non-GAAP measures.

13


4Q08 Results+ Pricing primarily in aramids and chemical products– Double digit volume decline in most segments– U.S. construction market faced further weakness– Short-term effect from growth investments

1Q09 Outlook + Nomex® and parts of Kevlar® strong demand+ Lower raw material prices– Demand down sequentially in most product lines

U.S. housing starts reduced over 30% in 2008;Pressure continues in 2009

Sales (10%) PTOI (62%)*

$500

$1,000

$1,500

4Q084Q07$0

$150

$300

4Q084Q07

Safety & ProtectionSafety & Protection4Q08 Segment Highlights 4Q08 Segment Highlights

* See schedule C and D in the news release for reconciliation of non-GAAP measures.

14


2009 Directives

Drive Sales & Earnings• Deliver against segment specific targets

Reduce Costs• $730 million fixed cost reduction programs

Reduce Capital Spending• ~ $1.6 billion

Reduce Working Capital• $1 billion target

15


Appendix

• Industrial chemical prices

• Total company volume and local pricing trends

• Fixed cost control

16

© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved. Source: Bureau of Labor Statistics U.S. Producer Price Index of Industrial Chemicals

Industrial Chemical Prices

Sequential Price Level YOY % Change

17


DuPont Sales Volume Worldwide*

080706050403020100

151050

-5-10-15-20-25

1201151101051009590

* History excludes Textiles & Interiors

Yr/Yr % Change (Left)Volume Level 4qma (1999 = 100 Right)

18


DuPont Selling Prices Worldwide*

080706050403020100

10

8

6

4

2

0

-2

-4

120

115

110

105

100

95

Yr/Yr % Change (Left)Index 4qma (1999 = 100 Right)

* Prices in local currency terms(Adjusted for currency & history excludes Textiles & Interiors)

19


35

40

45

50

55

1 Qtr 2 Qtr 3 Qtr 4 Qtr

20042005200620072008

Note: Data excludes significant items in all periods and has been adjusted for 2004 to exclude Textiles & Interiors.

Productivity Initiative Fixed Cost ControlFixed Costs as % of Consolidated Sales

45.2 44.6

42.541.0 41.2

35

45

2004 2005 2006 2007 2008

Quarterly Annually

Fixe

d C

ost %

of S

ales

Economy & Finance

du pont 4Q08 Conference Call Slides