Dupont De Nemours, Inc. · NYSE:DD
Dupont De Nemours — DowDuPont — Bank of America Merrill Lynch Global Agriculture & Chemicals Conference 2018
32 slides from Dupont De Nemours's conference presentation, Mar 1, 2018
Slide 1: Global Agriculture & Chemicals Conference
B A N K O F A M E R I C A M E R R I L L LY N C H GLOBAL AGRICULTURE & CHEMICALS CONFERENCE JIM COLLINS Chief Operating Officer, Agriculture Division of DowDuPont March 1, 2018
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking
Slide 3: Enabling the Industry to Meet Record Demand
ENABLING THE INDUSTRY TO MEET RECORD DEMAND LEADING THE WAY TO THE FUTURE OF AGRICULTURE Connecting the dots across Providing innovative and Contributing to responsible the value chain, comprehensive solutions agriculture that promotes collaborating with all enabling farmers to meet stewardship and
Slide 4: Strong Fundamentals, Unique Opportunity
STRONG FUNDAMENTALS, UNIQUE OPPORTUNITY Leadership Balanced Opportunities Significant cost Strong pipeline position in key portfolio and to expand and growth and innovation market scale to geographic synergies capabilities segments outperform reach 4
Slide 5: A Complete Solution for the Farmer
A COMPLETE SOLUTION FOR THE FARMER Industry-leading capability to enable highest-performing company in production agriculture DIGITAL TARGETED CROP SEED APPLIED DIGITAL AGRONOMIC BIOTECH BREEDING BREEDING PROTECTION TECHNOLOGY SOLUTIONS SOLUTIONS World-class unified R&D capabilities driving Solving
Slide 6: Three Horizons of Growth
OUR PATH TO INDUSTRY-LEADING VALUE CREATION 3 2022+ SHAPE THE FUTURE Create new value for customers and industry through novel business models, products, and services Three 2019-2021 2 Horizons ACCELERATE GROWTH of Growth Ag Spin ~6/1/19* Launch products and services pipeline, capture growth synergi
Slide 7: Build Momentum (2017-2018)
BUILD MOMENTUM (2017-2018) IMPROVE MARGINS, LAUNCH NEAR-TERM PIPELINE, SPIN PREPARATION DELIVER COST LAUNCH LEVERAGE MULTI-BRAND ADVANCE SYNERGIES PIPELINE AND MULTI-CHANNEL PREPARATION TO CAPABILITIES SPIN* • Achieve 70% of run rate • ~$4.5B peak sales • Align brands to channels • Solidify culture
Slide 8: Accelerate Growth (2019-2021)
ACCELERATE GROWTH (2019-2021) LAUNCH PIPELINE, ADVANCE GROWTH SYNERGIES LAUNCH PIPELINE ADVANCE GROWTH SYNERGIES • ~$4.5B peak sales opportunity from • Enhanced focus on retail channel 2019-2021 launches; in addition to ~$4.5B from launches in 2017-2018 • Optimize market access to ramp up product la
Slide 9: Shape the Future (2022+)
SHAPE THE FUTURE (2022+) CREATE NEW VALUE THROUGH NOVEL PRODUCTS AND SERVICES RECENT 2018 2019-2021 BEYOND LAUNCHES › WideStrike® 3 insect › UnifiedTM corn silage › Conkesta E3™ soybean › Corn & soybean insect protection x Enlist™ cotton › Intacta RR2 PRO® › Next gen waxy corn control SEEDS & › Roun
Slide 10: Seed Platform by the Numbers
SEED PLATFORM BY THE NUMBERS LEADING SEED POSITION ACROSS LARGEST CROPS AND GEOGRAPHIES 2017 PRO FORMA 2017 PRO FORMA MARKET MARKET SHARE* SHARE BY REGION BYNET MAJOR PRODUCT GROUP NET SALES BY REGION SALES BY PRODUCT Market Segment Rank N. AMERICA CORN #1 N. AMERICA SOY #1 BRAZIL CORN #1 EUR CORN #
Slide 11: Strongest and Most Diverse Advanced Breeding Engine
STRONGEST AND MOST DIVERSE ADVANCED BREEDING ENGINE GLOBAL SYSTEMS WITH LOCAL DELIVERY TO ENHANCE PRODUCT PERFORMANCE Digital Breeding Targeted Breeding • Enhanced breeding capabilities • Broadest CRISPR patent estate in including infrastructure, germplasm, industry and talent • Accelerated launch o
Slide 12: Maximizing Value of Trait Launches: Corn
MAXIMIZING VALUE OF TRAIT LAUNCHES: CORN1 BALANCING USE OF PROPRIETARY AND LICENSED TECHNOLOGY ABOVE-GROUND BELOW-GROUND Improved Improved Product Out license Improved Improved Product Out license TODAY 2030+ margin efficacy renewal opportunity TODAY 2030+ margin efficacy renewal opportunity Optimum
Slide 13: Maximizing Value of Trait Launches: Soybean
MAXIMIZING VALUE OF TRAIT LAUNCHES: SOYBEAN1 TRANSITIONING TO MORE PROPRIETARY TECHNOLOGY NORTH AMERICA LATIN AMERICA Improved Improved Product Out license Improved Improved Product Out license TODAY 2030+ margin efficacy renewal opportunity TODAY 2030+ margin efficacy renewal opportunity Roundup Re
Slide 14: Enlist Weed Control System
ENLISTTM WEED CONTROL SYSTEM TARGETING ~$2B OF PEAK SALES FROM FULL SYSTEM EnlistTM cotton treated with Enlist Duo® herbicide TREATED UNTREATED › Integrated system of novel traits and innovative and highly effective herbicides with a comprehensive management and stewardship program in corn, soybeans
Slide 15: Crop Protection Platform by the Numbers
CROP PROTECTION PLATFORM BY THE NUMBERS BALANCED GEOGRAPHIC MIX; STRONG ALIGNMENT WITH SEED OFFERING 2017 PRO FORMA NET SALES 2017 PRO FORMA NET SALES MARKET MARKET SHARE* SHARE BY BY REGION REGION BY MAJOR PRODUCT BY CROP GROUP SEGMENT Market Segment Rank GLOBAL #1 HERBICIDES NATURALLY DERIVED #1 I
Slide 16: Shaping the Crop Protection Platform Toward Differentiated & Cost Advantaged Offerings
SHAPING THE CROP PROTECTION PLATFORM TOWARD DIFFERENTIATED & COST ADVANTAGED OFFERINGS DELIVER THE PIPELINE ENABLE COST ADVANTAGE DRIVE DISCIPLINE Rapidly launch and ramp Build competitive cost Disciplined portfolio up new technology: advantages: management: • Realize >$3.5B of • Deliver cost synerg
Slide 17: Crop Protection Pipeline Highlights
CROP PROTECTION PIPELINE HIGHLIGHTS LEADING DISEASE CONTROL AND EXPANDING RICE PROTECTION PORTFOLIOS Robust Disease Control Portfolio Novel Rice Protection Offerings Broadest pipeline in industry: Rinskor™ active rice herbicide >$400 million peak sales target • Inatreq™ active ~$350 million peak sal
Slide 18: Strong Insect Control Portfolio
STRONG INSECT CONTROL PORTFOLIO DRIVING GROWTH IN 2018 AND BEYOND; WELL POSITIONED TO CAPTURE SHARE Novel New Technologies Growth from Existing Products Continued growth from Significant growth from Spinetoram IsoclastTM and Spinosad actives • ~$350 million peak sales target • Increased supply with
Slide 19: Expanding Seed Applied Technology Enterprise
EXPANDING SEED APPLIED TECHNOLOGY ENTERPRISE AN INTERSECTION OF THE CROP PROTECTION AND SEED PLATFORMS Leading capability to deliver advanced seed Market-Driven applied technologies Innovation to improve grower productivity Robust Portfolio of Collaboration Offerings • Disease Protection • LumisenaT
Slide 20: Driving Customer Value Through Digitization
DRIVING CUSTOMER VALUE THROUGH DIGITIZATION Agriculture’s Digital Transformation Starts with the Digitize the farm Connect the farm Enable online Farm marketplaces Most Advanced Digital Solutions Offering Granular® Encirca® AcreValueTM • Silicon Valley-based • Advanced analytic- • Leading digital co
Slide 21: Deploying Digital Capabilities Internally to Drive Business Value
DEPLOYING DIGITAL CAPABILITIES INTERNALLY TO DRIVE BUSINESS VALUE Demand Digital Capability enables: • Data analytics generation leading to new insights and opportunities Analysis Productivity • More effective and efficient demand creation • Increased R&D productivity and DIGITAL CAPABILITIES improv
Slide 22: Integrated Portfolio with Focus on Sustainability
INTEGRATED PORTFOLIO WITH FOCUS ON SUSTAINABILITY Crop Protection & Nitrogen Natural Products & Management Solutions Biologicals Germplasm, Traits, and Seed Applied Technology Digital Solutions WE MAKE AGRICULTURE AND THE FOOD SYSTEM HEALTHIER, SAFER, MORE PRODUCTIVE, AND MORE SUSTAINABLE 22
Slide 23: DowDuPont Agriculture
DOWDUPONT AGRICULTURE ROBUST BUSINESS MODEL FOR CONSISTENT GROWTH Global leader Award-winning Margin improvement Sustainable Expanding in $100B+ innovation enabled by pipeline competitive digital production Ag portfolio trait strategy, and advantage capabilities industry to drive synergy delivery to
Slide 24: Appendix
APPENDIX 24
Slide 25: Key Seed Launches Through 2021
KEY SEED LAUNCHES THROUGH 2021 TRAIT CROPS GEOGRAPHIES TRAIT CROPS GEOGRAPHIES Corn North America Canola Canada Cotton, Corn, U.S., Latin America Corn North America Soy Soy Latin America Corn Latin America Canola Canada Next Gen Waxy Corn U.S. Canola Canada Sunflower Canada, Europe Launches pending
Slide 26: Key Crop Protection Launches Through 2021
KEY CROP PROTECTION LAUNCHES THROUGH 2021 Product CROPS GEOGRAPHIES Product CROPS GEOGRAPHIES Cereal, Oilseed North America Brazil Rape, Sunflower Latin America VessaryaTM Soy China Cotton, Corn, Soy U.S. Rice Asia Pacific Latin America Europe Soy, Fruit, Cereal, Banana Latin America VellozineTM Veg
Slide 27: Seed Pipeline: Corn
SEED PIPELINE MARKET Est. R&D PHASE MARKETS Peak CORN (●) PRIMARY OPPORTUNITY (MM ACRES) Sales 0 1 2 3 4 5 6 NA EUR LA AP AF <50 50-100 >100 H / M / L KEY HIGHLIGHTED PRODUCT CONCEPTS PowerCore® ● M Qrome® products LIMITED ● H Enlist™ ● ● * PowerCore® ULTRA LIMITED ● H SmartStax® Pro ● M NEXT GENERA
Slide 28: Seed Pipeline: Soybean
SEED PIPELINE MARKET Est. R&D PHASE MARKETS Peak SOYBEAN (●) PRIMARY OPPORTUNITY (MM ACRES) Sales 0 1 2 3 4 5 6 NA EU LA AP AF <50 50-100 >100 H/M/L KEY HIGHLIGHTED PRODUCT CONCEPTS Roundup Ready 2 Xtend® technology ● H Intacta RR2 PRO® technology ● M Plenish® High Oleic Soybean ● M Enlist E3™ LIMIT
Slide 29: Seed Pipeline Complementary Crops
SEED PIPELINE MARKET Est. MARKETS COMPLEMENTARY R & D PHASE (●) PRIMARY OPPORTUNITY (MM ACRES) Peak Sales CROPS 0 1 2 3 4 5 6 NA EU LA AP AF <50 50-100 >100 H/M/L COTTON KEY HIGHLIGHTED PRODUCT CONCEPTS WideStrike® 3 insect protection x Enlist™ cotton ● L CANOLA KEY HIGHLIGHTED PRODUCT CONCEPTS Opti
Slide 30: Crop Protection Pipeline
CROP PROTECTION PIPELINE R&D Phase1 Target Market (Shaded) Estimated CROP PROTECTION Oil Peak 2 0 1 2 3 4 5 6 F&V R&P Rice Corn Seed Sales WEED CONTROL Rinskor™ new mode of action broad spectrum weed M control Enlist™ M Three “new” classes weed control leads “New” class of broad leaf weed control IN
Slide 31: Crop Protection Pipeline
CROP PROTECTION PIPELINE Target Market R&D Phase1 Estimated (Shaded) CROP PROTECTION Peak 2 0 1 2 3 4 5 6 F&V Cereals Corn Oil Seed Sales DISEASE CONTROL Inatreq™, novel mode of action and naturally derived M Vessarya™ unique disease control for Brazilian crops M Zorvec® oomycete control, new mode o
Slide 32: Dicamba Herbicide Application Notice
DO NOT APPLY DICAMBA HERBICIDE IN-CROP TO SOYBEANS WITH Roundup Ready 2 Xtend ® technology unless you use a dicamba herbicide product that is specifically labeled for that use in the location where you intend to make the application. IT IS A VIOLATION OF FEDERAL AND STATE LAW TO MAKE AN IN-CROP APPL
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