vehicles and energy-effi cient products will outpace demand
for more traditional applications for our materials. And
we expect the Safety & Protection top-line to grow at 8 to
10 percent over the same fi ve-year period.
Our Engine of Innovation
In 2010, we introduced 1,786 new products and fi led
2,034 U.S. patent applications. About 85 percent of our
R&D resources supported growth areas related to the
megatrends. Developing markets are important because
of the long-term growth opportunity they represent.
Nearly all the world’s population growth is taking place
in developing countries.
Because of that, we have been growing our science and
technology footprint globally, with major investments in
new technology centers in China, India and Brazil. At
each location, we have the technical capability to respond
to customer needs with a cycle time commensurate
with the blistering pace of growth in these markets.
It is paying off. In Greater China we exceeded
$3 billion in sales in 2010. Much of that growth resulted
from applications development and technical
marketing capability we put in place in China during
the last 5 years. Meanwhile, customers in developing
markets also look to access the totality of DuPont
science and technology. We are responding by
leveraging our major R&D centers in Delaware,
Iowa, Switzerland and Germany.
Focused on Delivering Results
All our business segments made excellent progress in 2010.
We expect to deliver our original 2012 earnings per
share target one year ahead of plan. Th ree of our business
segments met or beat their 2012 margin target in 2010,
two years ahead of plan, and we are raising the bar on our
segment fi nancial targets with even more aggressive goals.
We are committed to growing underlying earnings per
share 12 percent compounded annually through 2015 by
diff erentiating our company through:
•
innovation fueled by the megatrends;
•
sustainable growth achieved by diff erentially
managing our portfolio;
•
ongoing productivity, with targets that are
externally benchmarked for each business.
You can expect us to exercise good fi nancial discipline,
make decisions and take actions in support of a strong
balance sheet that gives us the fl exibility to pursue growth
opportunities while providing attractive returns to you, our
shareholders. We are very excited about our future. Focused
on markets and driven by innovation and productivity, we
have established goals to make 2011 another exceptional
year for our company.
Ellen Kullman
Chair of the Board &
Chief Executive Offi cer
March 1, 2011
NET SALES (dollars in billions)
EARNINGS PER SHARE 1 (dollars)
DIVIDEND PAYMENTS (dividends per share in dollars)
30.5
29.4
27.4
26.1
31.5
35
30
25
20
15
10
3.50
3.00
2.50
2.00
1.50
1.00
3.28
3.28
2.00
2.88
2.78
2.03
1.64
1.40 1.46
1.02
.81
1.50
1.00
.46
.50
.50
1ST
DIVIDEND
PAID
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
1904
1980
1985 1990 1995 2000 2005 2010
1 Be fore si gn i f ic an t i t ems
OUR MISSION: SUSTAINABLE GROWTH
The creation of shareholder and societal value while we reduce our
environmental footprint along the value chains in which we operate.
DuPont Agriculture
& Nutrition
Businesses:
Pioneer Hi-Bred | Crop
Protection | Nutrition &
Health
Mission:
Grow aggressively
through innovative
products and services
that help the world
increase the quantity,
quality, safety and
sustainability of our
food supply.
Core Markets:
Production Agriculture |
Food & Nutrition Products
DuPont Electronics
& Communications
Mission:
Focused growth through
supplying enabling
materials and systems
for photovoltaics,
electronics, fl at panel
displays and advanced
printing.
Core Markets:
Photovoltaics |
Consumer Electronics |
Advanced Printing |
Displays
DuPont Performance
Chemicals
Businesses:
Titanium Technologies |
Chemicals & Fluoroproducts
Mission:
Accelerate earnings and
cash growth through
cost and working capital
productivity and
selected investments in
higher-growth markets,
regions and technologies
to achieve top quartile
performance among
peer global specialty
chemical manufacturers.
Core Markets:
Construction | Specialties |
Industrials & Chemicals
DuPont Performance
Coatings
Mission:
Deliver earnings and
cash growth through
cost and working capital
productivity while making
only very selective growth
investments, so that
top quartile fi nancial
performance among
global industry peers is
achieved.
Core Markets:
Automotive OEM |
Collision Repair |
Industrial Coatings
DuPont Performance
Materials
Businesses:
Performance Polymers |
Packaging & Industrial
Polymers
Mission:
Deliver earnings and
cash growth through
cost and working capital
productivity while
making selective growth
investments, providing
innovative materials
and expert applications
development that enhance
customers’ product
performance, improve
sustainability and reduce
total system cost.
Core Markets:
Automotive | Packaging |
Electrical/Electronics |
Construction |
Consumer Durables
DuPont Safety
& Protection
Businesses:
Protection Technologies |
Building Innovations |
Sustainable Solutions
Mission:
Grow aggressively
by being the global
innovation leader in
engineered products,
services and systems
that protect lives, the
environment and
critical processes and
provide sustainable
building solutions.
Core Markets:
Industrial Personal
Protection | Construction |
Industrial | Military and
Law Enforcement
2010 SALES BY SEGMENT
Net Sales
$31.5 B
Safety &
Protection
Other
1%
10%
Agriculture
& Nutrition
Performance
Materials
20%
12%
Performance
Coatings
28%
9%
20%
Electronics &
Communications
Performance
Chemicals
2010 NET SALES BY REGION
Developing
Asia
14%
Developed
Asia
9%
Developing
EMEA**
North
America*
39%
7 %
19%
12%
Latin
America
Developed
EMEA**
* U.S. & Canada
** Europe, Middle East & Africa
This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including
statements about the company’s strategy for growth, product development, market position, expected expenditures and fi nancial results, are forward-looking statements. Some of the forward-looking statements
may be identifi ed by words like “expects,” “anticipates,” “plans,” “intends,” “projects,” and “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of
risks, uncertainties and assumptions. Many factors, including those discussed more fully in documents fi led with the Securities and Exchange Commission by DuPont, particularly its 2010 Annual Report on Form
10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions, including infl ation,
interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions,
divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products. The company
undertakes no duty to update any forward-looking statements as a result of future developments or new information.
Use of Non-GAAP Measures: This annual review includes company information that does not conform to generally accepted accounting principles (GAAP), including measures which exclude signifi cant items
such as underlying pretax operating income, underlying earnings per share and free cash fl ow. Free cash fl ow is defi ned as cash fl ow provided by operating activities less purchases of property, plant and equipment
and less investments in affi liates. Non-GAAP measures are not a substitute for GAAP results. Signifi cant items represent special charges or credits that are important to an understanding of the company’s ongoing
operations. The company uses non-GAAP measures to evaluate and manage the company’s operations. 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 fi nancial results of the company. The determination of signifi cant items and these measures may not be comparable to
similarly titled measures provided by other companies. A reconciliation of non-GAAP measures to GAAP results is provided on the company’s website at www.dupont.com under the heading Investor Center, or
as furnished in the company’s SEC fi lings on Form 8-K, which are available at www.sec.gov.
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 Releases link on the
Investor Center at www.dupont.com.
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™ and all products denoted with ™ and ® are trademarks or registered trademarks of DuPont or its affi liates.
Photo of Ellen Kullman courtesy of AP Images.
Produced with DuPont proofi ng products.
2010 DUPONT ANNUAL REVIEW
Delivering solutions, delivering growth
through inclusive innovation.
To DuPont Shareholders
DuPont excelled in 2010. We came through 2009
focused on business fundamentals and established
a solid foundation as we emerged stronger from the
economic downturn. In 2010, we delivered superior
performance in terms of growth, productivity and
operating leverage. We managed our portfolio
differentially, setting
aggressive goals for each
business. We fi nished
the year ahead of our
fi xed cost and working
capital productivity goals.
We outperformed our
competition and worked
hard to deliver shareholder
value to earn investor
trust and confi dence.
Now, in 2011, we have the
Ellen Kullman
momentum to deliver continued growth, innovation
and expanded margins.
There are even better things to come. Through 2015,
we expect underlying earnings per share growth of about
12 percent compounded annually. We have attractive
growth opportunities supported by market-driven
science and fueled by global megatrends associated
with population growth. We are allocating resources
to drive the highest growth opportunities. Productivity
will continue to be a cornerstone of how we operate
our company.
We measured our performance in 2010 opposite a set
of Directives that we adopted to drive our results.
Here’s how we did:
• Revenue and earnings growth – In revenue growth
we far exceeded the 10 percent target we set, and ended the
year up 21 percent. Earnings per share grew more than
60 percent. Notable growth areas included: an extremely
strong photovoltaic market; increased automotive builds;
a faster rate of restocking in the first half of the year;
stronger-than-expected recovery in developed markets;
continued strength in agriculture and continued growth
in developing markets.
Innovation – In 2010, 31 percent of our sales came
•
from products that were introduced within the past 4 years,
clearly showing our market-driven science is meeting market
needs. We met major milestones for progress in our new
growth area of biofuels and biomaterials development.
• Fixed cost and working capital productivity – We
finished ahead of plan and gained momentum. Late in
2010, we announced goals for an additional $300 million
in both categories to be delivered in 2011.
• Free cash fl ow – We ended the year with a very strong
balance sheet and exceeded our target of “greater than
$1.7 billion” free cash fl ow, generating $3.1 billion.
Th is was in spite of the fact that we made a $500 million
voluntary contribution to the principal U.S. pension plan.
These outstanding accomplishments were made possible
by DuPont employees around the world who continue
to demonstrate exceptional
creativity and commitment
to our company’s goals while
remaining true to the core values
that distinguish DuPont and
our proud 208-year heritage.
DuPont
Core Values
• Safety
and Health
Megatrends Drive Growth
DuPont is uniquely positioned
to collaborate with customers,
business partners, governments
and public-private partnerships
to tackle big global challenges
that off er the opportunity for
signifi cant top-line growth and
value creation.
• Environmental
Stewardship
• Highest
Ethical Behavior
• Respect
for People
Global population will pass the 7 billion mark in 2011 and
exceed 9 billion people by 2050 – or about 150,000 more
people on the planet every day. Th is will translate into
critical needs in the areas of feeding the world, reducing
our dependence on fossil fuels and keeping people and
the environment safe – the megatrends that are driving
our science and innovation and hence our company growth.
Our businesses that are directly aligned with these megatrends
are profi tably growing at a pace above company average.
For example, we expect our Agriculture & Nutrition segment
to continue to grow sales at a rate of 8 to 10 percent per
year over the coming 5 years. Th e growth forecast for
photovoltaics is even stronger. Demand for lightweighting
002226-01E-8PanelBrochure.1.indd 1
3/11/11 8:22:22 AM
F:8”
F:8.25”
F:8.25”
F:8”
vehicles and energy-effi cient products will outpace demand
for more traditional applications for our materials. And
we expect the Safety & Protection top-line to grow at 8 to
10 percent over the same fi ve-year period.
Our Engine of Innovation
In 2010, we introduced 1,786 new products and fi led
2,034 U.S. patent applications. About 85 percent of our
R&D resources supported growth areas related to the
megatrends. Developing markets are important because
of the long-term growth opportunity they represent.
Nearly all the world’s population growth is taking place
in developing countries.
Because of that, we have been growing our science and
technology footprint globally, with major investments in
new technology centers in China, India and Brazil. At
each location, we have the technical capability to respond
to customer needs with a cycle time commensurate
with the blistering pace of growth in these markets.
It is paying off. In Greater China we exceeded
$3 billion in sales in 2010. Much of that growth resulted
from applications development and technical
marketing capability we put in place in China during
the last 5 years. Meanwhile, customers in developing
markets also look to access the totality of DuPont
science and technology. We are responding by
leveraging our major R&D centers in Delaware,
Iowa, Switzerland and Germany.
Focused on Delivering Results
All our business segments made excellent progress in 2010.
We expect to deliver our original 2012 earnings per
share target one year ahead of plan. Th ree of our business
segments met or beat their 2012 margin target in 2010,
two years ahead of plan, and we are raising the bar on our
segment fi nancial targets with even more aggressive goals.
We are committed to growing underlying earnings per
share 12 percent compounded annually through 2015 by
diff erentiating our company through:
•
innovation fueled by the megatrends;
•
sustainable growth achieved by diff erentially
managing our portfolio;
•
ongoing productivity, with targets that are
externally benchmarked for each business.
You can expect us to exercise good fi nancial discipline,
make decisions and take actions in support of a strong
balance sheet that gives us the fl exibility to pursue growth
opportunities while providing attractive returns to you, our
shareholders. We are very excited about our future. Focused
on markets and driven by innovation and productivity, we
have established goals to make 2011 another exceptional
year for our company.
Ellen Kullman
Chair of the Board &
Chief Executive Offi cer
March 1, 2011
NET SALES (dollars in billions)
EARNINGS PER SHARE 1 (dollars)
DIVIDEND PAYMENTS (dividends per share in dollars)
30.5
29.4
27.4
26.1
31.5
35
30
25
20
15
10
3.50
3.00
2.50
2.00
1.50
1.00
3.28
3.28
2.00
2.88
2.78
2.03
1.64
1.40 1.46
1.02
.81
1.50
1.00
.46
.50
.50
1ST
DIVIDEND
PAID
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
1904
1980
1985 1990 1995 2000 2005 2010
1 Be fore si gn i f ic an t i t ems
OUR MISSION: SUSTAINABLE GROWTH
The creation of shareholder and societal value while we reduce our
environmental footprint along the value chains in which we operate.
DuPont Agriculture
& Nutrition
Businesses:
Pioneer Hi-Bred | Crop
Protection | Nutrition &
Health
Mission:
Grow aggressively
through innovative
products and services
that help the world
increase the quantity,
quality, safety and
sustainability of our
food supply.
Core Markets:
Production Agriculture |
Food & Nutrition Products
DuPont Electronics
& Communications
Mission:
Focused growth through
supplying enabling
materials and systems
for photovoltaics,
electronics, fl at panel
displays and advanced
printing.
Core Markets:
Photovoltaics |
Consumer Electronics |
Advanced Printing |
Displays
DuPont Performance
Chemicals
Businesses:
Titanium Technologies |
Chemicals & Fluoroproducts
Mission:
Accelerate earnings and
cash growth through
cost and working capital
productivity and
selected investments in
higher-growth markets,
regions and technologies
to achieve top quartile
performance among
peer global specialty
chemical manufacturers.
Core Markets:
Construction | Specialties |
Industrials & Chemicals
DuPont Performance
Coatings
Mission:
Deliver earnings and
cash growth through
cost and working capital
productivity while making
only very selective growth
investments, so that
top quartile fi nancial
performance among
global industry peers is
achieved.
Core Markets:
Automotive OEM |
Collision Repair |
Industrial Coatings
DuPont Performance
Materials
Businesses:
Performance Polymers |
Packaging & Industrial
Polymers
Mission:
Deliver earnings and
cash growth through
cost and working capital
productivity while
making selective growth
investments, providing
innovative materials
and expert applications
development that enhance
customers’ product
performance, improve
sustainability and reduce
total system cost.
Core Markets:
Automotive | Packaging |
Electrical/Electronics |
Construction |
Consumer Durables
DuPont Safety
& Protection
Businesses:
Protection Technologies |
Building Innovations |
Sustainable Solutions
Mission:
Grow aggressively
by being the global
innovation leader in
engineered products,
services and systems
that protect lives, the
environment and
critical processes and
provide sustainable
building solutions.
Core Markets:
Industrial Personal
Protection | Construction |
Industrial | Military and
Law Enforcement
2010 SALES BY SEGMENT
Net Sales
$31.5 B
Safety &
Protection
Other
1%
10%
Agriculture
& Nutrition
Performance
Materials
20%
12%
Performance
Coatings
28%
9%
20%
Electronics &
Communications
Performance
Chemicals
2010 NET SALES BY REGION
Developing
Asia
14%
Developed
Asia
9%
Developing
EMEA**
North
America*
39%
7 %
19%
12%
Latin
America
Developed
EMEA**
* U.S. & Canada
** Europe, Middle East & Africa
This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including
statements about the company’s strategy for growth, product development, market position, expected expenditures and fi nancial results, are forward-looking statements. Some of the forward-looking statements
may be identifi ed by words like “expects,” “anticipates,” “plans,” “intends,” “projects,” and “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of
risks, uncertainties and assumptions. Many factors, including those discussed more fully in documents fi led with the Securities and Exchange Commission by DuPont, particularly its 2010 Annual Report on Form
10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions, including infl ation,
interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions,
divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products. The company
undertakes no duty to update any forward-looking statements as a result of future developments or new information.
Use of Non-GAAP Measures: This annual review includes company information that does not conform to generally accepted accounting principles (GAAP), including measures which exclude signifi cant items
such as underlying pretax operating income, underlying earnings per share and free cash fl ow. Free cash fl ow is defi ned as cash fl ow provided by operating activities less purchases of property, plant and equipment
and less investments in affi liates. Non-GAAP measures are not a substitute for GAAP results. Signifi cant items represent special charges or credits that are important to an understanding of the company’s ongoing
operations. The company uses non-GAAP measures to evaluate and manage the company’s operations. 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 fi nancial results of the company. The determination of signifi cant items and these measures may not be comparable to
similarly titled measures provided by other companies. A reconciliation of non-GAAP measures to GAAP results is provided on the company’s website at www.dupont.com under the heading Investor Center, or
as furnished in the company’s SEC fi lings on Form 8-K, which are available at www.sec.gov.
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 Releases link on the
Investor Center at www.dupont.com.
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™ and all products denoted with ™ and ® are trademarks or registered trademarks of DuPont or its affi liates.
Photo of Ellen Kullman courtesy of AP Images.
Produced with DuPont proofi ng products.
2010 DUPONT ANNUAL REVIEW
Delivering solutions, delivering growth
through inclusive innovation.
To DuPont Shareholders
DuPont excelled in 2010. We came through 2009
focused on business fundamentals and established
a solid foundation as we emerged stronger from the
economic downturn. In 2010, we delivered superior
performance in terms of growth, productivity and
operating leverage. We managed our portfolio
differentially, setting
aggressive goals for each
business. We fi nished
the year ahead of our
fi xed cost and working
capital productivity goals.
We outperformed our
competition and worked
hard to deliver shareholder
value to earn investor
trust and confi dence.
Now, in 2011, we have the
Ellen Kullman
momentum to deliver continued growth, innovation
and expanded margins.
There are even better things to come. Through 2015,
we expect underlying earnings per share growth of about
12 percent compounded annually. We have attractive
growth opportunities supported by market-driven
science and fueled by global megatrends associated
with population growth. We are allocating resources
to drive the highest growth opportunities. Productivity
will continue to be a cornerstone of how we operate
our company.
We measured our performance in 2010 opposite a set
of Directives that we adopted to drive our results.
Here’s how we did:
• Revenue and earnings growth – In revenue growth
we far exceeded the 10 percent target we set, and ended the
year up 21 percent. Earnings per share grew more than
60 percent. Notable growth areas included: an extremely
strong photovoltaic market; increased automotive builds;
a faster rate of restocking in the first half of the year;
stronger-than-expected recovery in developed markets;
continued strength in agriculture and continued growth
in developing markets.
Innovation – In 2010, 31 percent of our sales came
•
from products that were introduced within the past 4 years,
clearly showing our market-driven science is meeting market
needs. We met major milestones for progress in our new
growth area of biofuels and biomaterials development.
• Fixed cost and working capital productivity – We
finished ahead of plan and gained momentum. Late in
2010, we announced goals for an additional $300 million
in both categories to be delivered in 2011.
• Free cash fl ow – We ended the year with a very strong
balance sheet and exceeded our target of “greater than
$1.7 billion” free cash fl ow, generating $3.1 billion.
Th is was in spite of the fact that we made a $500 million
voluntary contribution to the principal U.S. pension plan.
These outstanding accomplishments were made possible
by DuPont employees around the world who continue
to demonstrate exceptional
creativity and commitment
to our company’s goals while
remaining true to the core values
that distinguish DuPont and
our proud 208-year heritage.
DuPont
Core Values
• Safety
and Health
Megatrends Drive Growth
DuPont is uniquely positioned
to collaborate with customers,
business partners, governments
and public-private partnerships
to tackle big global challenges
that off er the opportunity for
signifi cant top-line growth and
value creation.
• Environmental
Stewardship
• Highest
Ethical Behavior
• Respect
for People
Global population will pass the 7 billion mark in 2011 and
exceed 9 billion people by 2050 – or about 150,000 more
people on the planet every day. Th is will translate into
critical needs in the areas of feeding the world, reducing
our dependence on fossil fuels and keeping people and
the environment safe – the megatrends that are driving
our science and innovation and hence our company growth.
Our businesses that are directly aligned with these megatrends
are profi tably growing at a pace above company average.
For example, we expect our Agriculture & Nutrition segment
to continue to grow sales at a rate of 8 to 10 percent per
year over the coming 5 years. Th e growth forecast for
photovoltaics is even stronger. Demand for lightweighting
002226-01E-8PanelBrochure.1.indd 1
3/11/11 8:22:22 AM
F:8”
F:8.25”
F:8.25”
F:8”
vehicles and energy-effi cient products will outpace demand
for more traditional applications for our materials. And
we expect the Safety & Protection top-line to grow at 8 to
10 percent over the same fi ve-year period.
Our Engine of Innovation
In 2010, we introduced 1,786 new products and fi led
2,034 U.S. patent applications. About 85 percent of our
R&D resources supported growth areas related to the
megatrends. Developing markets are important because
of the long-term growth opportunity they represent.
Nearly all the world’s population growth is taking place
in developing countries.
Because of that, we have been growing our science and
technology footprint globally, with major investments in
new technology centers in China, India and Brazil. At
each location, we have the technical capability to respond
to customer needs with a cycle time commensurate
with the blistering pace of growth in these markets.
It is paying off. In Greater China we exceeded
$3 billion in sales in 2010. Much of that growth resulted
from applications development and technical
marketing capability we put in place in China during
the last 5 years. Meanwhile, customers in developing
markets also look to access the totality of DuPont
science and technology. We are responding by
leveraging our major R&D centers in Delaware,
Iowa, Switzerland and Germany.
Focused on Delivering Results
All our business segments made excellent progress in 2010.
We expect to deliver our original 2012 earnings per
share target one year ahead of plan. Th ree of our business
segments met or beat their 2012 margin target in 2010,
two years ahead of plan, and we are raising the bar on our
segment fi nancial targets with even more aggressive goals.
We are committed to growing underlying earnings per
share 12 percent compounded annually through 2015 by
diff erentiating our company through:
•
innovation fueled by the megatrends;
•
sustainable growth achieved by diff erentially
managing our portfolio;
•
ongoing productivity, with targets that are
externally benchmarked for each business.
You can expect us to exercise good fi nancial discipline,
make decisions and take actions in support of a strong
balance sheet that gives us the fl exibility to pursue growth
opportunities while providing attractive returns to you, our
shareholders. We are very excited about our future. Focused
on markets and driven by innovation and productivity, we
have established goals to make 2011 another exceptional
year for our company.
Ellen Kullman
Chair of the Board &
Chief Executive Offi cer
March 1, 2011
NET SALES (dollars in billions)
EARNINGS PER SHARE 1 (dollars)
DIVIDEND PAYMENTS (dividends per share in dollars)
30.5
29.4
27.4
26.1
31.5
35
30
25
20
15
10
3.50
3.00
2.50
2.00
1.50
1.00
3.28
3.28
2.00
2.88
2.78
2.03
1.64
1.40 1.46
1.02
.81
1.50
1.00
.46
.50
.50
1ST
DIVIDEND
PAID
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
1904
1980
1985 1990 1995 2000 2005 2010
1 Be fore si gn i f ic an t i t ems
OUR MISSION: SUSTAINABLE GROWTH
The creation of shareholder and societal value while we reduce our
environmental footprint along the value chains in which we operate.
DuPont Agriculture
& Nutrition
Businesses:
Pioneer Hi-Bred | Crop
Protection | Nutrition &
Health
Mission:
Grow aggressively
through innovative
products and services
that help the world
increase the quantity,
quality, safety and
sustainability of our
food supply.
Core Markets:
Production Agriculture |
Food & Nutrition Products
DuPont Electronics
& Communications
Mission:
Focused growth through
supplying enabling
materials and systems
for photovoltaics,
electronics, fl at panel
displays and advanced
printing.
Core Markets:
Photovoltaics |
Consumer Electronics |
Advanced Printing |
Displays
DuPont Performance
Chemicals
Businesses:
Titanium Technologies |
Chemicals & Fluoroproducts
Mission:
Accelerate earnings and
cash growth through
cost and working capital
productivity and
selected investments in
higher-growth markets,
regions and technologies
to achieve top quartile
performance among
peer global specialty
chemical manufacturers.
Core Markets:
Construction | Specialties |
Industrials & Chemicals
DuPont Performance
Coatings
Mission:
Deliver earnings and
cash growth through
cost and working capital
productivity while making
only very selective growth
investments, so that
top quartile fi nancial
performance among
global industry peers is
achieved.
Core Markets:
Automotive OEM |
Collision Repair |
Industrial Coatings
DuPont Performance
Materials
Businesses:
Performance Polymers |
Packaging & Industrial
Polymers
Mission:
Deliver earnings and
cash growth through
cost and working capital
productivity while
making selective growth
investments, providing
innovative materials
and expert applications
development that enhance
customers’ product
performance, improve
sustainability and reduce
total system cost.
Core Markets:
Automotive | Packaging |
Electrical/Electronics |
Construction |
Consumer Durables
DuPont Safety
& Protection
Businesses:
Protection Technologies |
Building Innovations |
Sustainable Solutions
Mission:
Grow aggressively
by being the global
innovation leader in
engineered products,
services and systems
that protect lives, the
environment and
critical processes and
provide sustainable
building solutions.
Core Markets:
Industrial Personal
Protection | Construction |
Industrial | Military and
Law Enforcement
2010 SALES BY SEGMENT
Net Sales
$31.5 B
Safety &
Protection
Other
1%
10%
Agriculture
& Nutrition
Performance
Materials
20%
12%
Performance
Coatings
28%
9%
20%
Electronics &
Communications
Performance
Chemicals
2010 NET SALES BY REGION
Developing
Asia
14%
Developed
Asia
9%
Developing
EMEA**
North
America*
39%
7 %
19%
12%
Latin
America
Developed
EMEA**
* U.S. & Canada
** Europe, Middle East & Africa
This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including
statements about the company’s strategy for growth, product development, market position, expected expenditures and fi nancial results, are forward-looking statements. Some of the forward-looking statements
may be identifi ed by words like “expects,” “anticipates,” “plans,” “intends,” “projects,” and “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of
risks, uncertainties and assumptions. Many factors, including those discussed more fully in documents fi led with the Securities and Exchange Commission by DuPont, particularly its 2010 Annual Report on Form
10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions, including infl ation,
interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions,
divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products. The company
undertakes no duty to update any forward-looking statements as a result of future developments or new information.
Use of Non-GAAP Measures: This annual review includes company information that does not conform to generally accepted accounting principles (GAAP), including measures which exclude signifi cant items
such as underlying pretax operating income, underlying earnings per share and free cash fl ow. Free cash fl ow is defi ned as cash fl ow provided by operating activities less purchases of property, plant and equipment
and less investments in affi liates. Non-GAAP measures are not a substitute for GAAP results. Signifi cant items represent special charges or credits that are important to an understanding of the company’s ongoing
operations. The company uses non-GAAP measures to evaluate and manage the company’s operations. 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 fi nancial results of the company. The determination of signifi cant items and these measures may not be comparable to
similarly titled measures provided by other companies. A reconciliation of non-GAAP measures to GAAP results is provided on the company’s website at www.dupont.com under the heading Investor Center, or
as furnished in the company’s SEC fi lings on Form 8-K, which are available at www.sec.gov.
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 Releases link on the
Investor Center at www.dupont.com.
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™ and all products denoted with ™ and ® are trademarks or registered trademarks of DuPont or its affi liates.
Photo of Ellen Kullman courtesy of AP Images.
Produced with DuPont proofi ng products.
2010 DUPONT ANNUAL REVIEW
Delivering solutions, delivering growth
through inclusive innovation.
To DuPont Shareholders
DuPont excelled in 2010. We came through 2009
focused on business fundamentals and established
a solid foundation as we emerged stronger from the
economic downturn. In 2010, we delivered superior
performance in terms of growth, productivity and
operating leverage. We managed our portfolio
differentially, setting
aggressive goals for each
business. We fi nished
the year ahead of our
fi xed cost and working
capital productivity goals.
We outperformed our
competition and worked
hard to deliver shareholder
value to earn investor
trust and confi dence.
Now, in 2011, we have the
Ellen Kullman
momentum to deliver continued growth, innovation
and expanded margins.
There are even better things to come. Through 2015,
we expect underlying earnings per share growth of about
12 percent compounded annually. We have attractive
growth opportunities supported by market-driven
science and fueled by global megatrends associated
with population growth. We are allocating resources
to drive the highest growth opportunities. Productivity
will continue to be a cornerstone of how we operate
our company.
We measured our performance in 2010 opposite a set
of Directives that we adopted to drive our results.
Here’s how we did:
• Revenue and earnings growth – In revenue growth
we far exceeded the 10 percent target we set, and ended the
year up 21 percent. Earnings per share grew more than
60 percent. Notable growth areas included: an extremely
strong photovoltaic market; increased automotive builds;
a faster rate of restocking in the first half of the year;
stronger-than-expected recovery in developed markets;
continued strength in agriculture and continued growth
in developing markets.
Innovation – In 2010, 31 percent of our sales came
•
from products that were introduced within the past 4 years,
clearly showing our market-driven science is meeting market
needs. We met major milestones for progress in our new
growth area of biofuels and biomaterials development.
• Fixed cost and working capital productivity – We
finished ahead of plan and gained momentum. Late in
2010, we announced goals for an additional $300 million
in both categories to be delivered in 2011.
• Free cash fl ow – We ended the year with a very strong
balance sheet and exceeded our target of “greater than
$1.7 billion” free cash fl ow, generating $3.1 billion.
Th is was in spite of the fact that we made a $500 million
voluntary contribution to the principal U.S. pension plan.
These outstanding accomplishments were made possible
by DuPont employees around the world who continue
to demonstrate exceptional
creativity and commitment
to our company’s goals while
remaining true to the core values
that distinguish DuPont and
our proud 208-year heritage.
DuPont
Core Values
• Safety
and Health
Megatrends Drive Growth
DuPont is uniquely positioned
to collaborate with customers,
business partners, governments
and public-private partnerships
to tackle big global challenges
that off er the opportunity for
signifi cant top-line growth and
value creation.
• Environmental
Stewardship
• Highest
Ethical Behavior
• Respect
for People
Global population will pass the 7 billion mark in 2011 and
exceed 9 billion people by 2050 – or about 150,000 more
people on the planet every day. Th is will translate into
critical needs in the areas of feeding the world, reducing
our dependence on fossil fuels and keeping people and
the environment safe – the megatrends that are driving
our science and innovation and hence our company growth.
Our businesses that are directly aligned with these megatrends
are profi tably growing at a pace above company average.
For example, we expect our Agriculture & Nutrition segment
to continue to grow sales at a rate of 8 to 10 percent per
year over the coming 5 years. Th e growth forecast for
photovoltaics is even stronger. Demand for lightweighting
002226-01E-8PanelBrochure.1.indd 1
3/11/11 8:22:22 AM
F:8”
F:8.25”
F:8.25”
F:8”
Welcome to
The Global Collaboratory
DuPont science is driving inclusive innovation to help
solve the world’s greatest challenges.
As the world’s population approaches seven billion, we face
unprecedented challenges. Solutions to many of them can be
found in DuPont science. But providing for the food, energy
and protection needs of a growing population will require
more than DuPont science. So we are building alliances
with people, companies, governments and organizations
around the world in an effort to improve the lives of people
everywhere. That’s how DuPont thinks and works today.
And we’re pleased to say, it’s working very well.
Together, we can accomplish what no one can do alone.
Together, we can nourish a growing population.
To help feed the world’s rapidly expanding population, DuPont is investing 60% of
our research and development dollars to help the world’s growing population produce
enough food. From advancing the nutritional content of crops, to helping farmers
and growers around the world increase their yields, to fi nding better ways to ensure
food safety, we’re working every day to get more good food to more people.
Together, we can build a secure energy future.
By 2035, global demand for energy will increase by 36%. DuPont is uniquely
positioned to address the rising demand for secure, environmentally sustainable
and affordable energy sources. With a growing population, we will need to use
our existing resources more responsibly and fi nd new and cleaner energy sources.
DuPont is applying deep expertise in microbiology, fermentation, polymer science
and electrochemistry to help make cars lighter, fuels cleaner, and sustainable energy
sources, such as the sun, easier to harness — all contributing to a brighter energy future.
Together, we can make the world a safer place.
A more populous world is not always a safer one. Working to ensure better safety and
security for people and the environment, DuPont is working with manufacturers
and governments to adapt protective materials, such as DuPontTM Kevlar® fi ber, to
automobile and structural designs — fulfi lling the needs of security-conscious
markets. DuPont offers collaborative consulting and solutions-driven technologies
and services that help organizations transform their workplaces and work cultures
to become safer, more effi cient and more environmentally sustainable.
INCREASING YIELDS STARTS WITH
PROTECTION FROM PESTS.
DERIVING BETTER NUTRITION
FROM EVERY SEED.
LIGHTENING THE LOAD FOR
FOSSIL-FUEL-POWERED VEHICLES.
EXTRACTING ENERGY FROM THE
SKY INSTEAD OF THE GROUND.
MAKING PERSONAL SAFETY
ACCESSIBLE AND AFFORDABLE.
EMBEDDING SAFETY INTO
AN INDUSTRY’S CULTURE.
DuPont™ Steward® and DuPont™ Altacor® insect control products
are helping growers in Spain protect their tomato yields from
Tuta absoluta, a highly destructive pest.
DuPont scientists are working with the Africa Biofortifi ed Sorghum
Project — a public-private collaborative team dedicated to fortifying
sorghum, the primary dietary staple of 300 million people.
Using lighter-weight, high-performance moldable automotive
parts made of DuPont™ Zytel® PLUS nylon makes cars lighter and
improves fuel economy.
DuPont Apollo collaborated with HK Electric and government
agencies to create the largest thin-fi lm photovoltaic rooftop installation
in Hong Kong — capable of generating 620,000 kWh annually.
Working with leading armor installers and car companies,
DuPont Brazil developed the Armura® armor kit, a retrofi t that
makes car armor 50% more affordable for people in Brazil.
Collaborating with MOL Group, an international oil and gas
company, DuPont Sustainable Solutions consultants were able to
signifi cantly improve the workplace safety culture at MOL.
002226-01E-8PanelBrochure.1.indd 2
DuPont Crop
Protection brought
in experts from
Brazil to help Spain’s
agricultural leaders
develop strategies for
managing this invasive
pest, which originated
in South America.
1BILLION
KG OF TOMATOES
are exported from Spain
each year, making it one of
the world’s leading exporters
of fresh tomatoes.
A fellowship program
sponsored by Pioneer
Hi-Bred has brought
12 African scientists
to Pioneer’s U.S.
headquarters to work
on the project side
by side with Pioneer
researchers.
The Africa Biofortifi ed Sorghum team
is applying science and technology
to enhance protein digestibility, iron
and zinc availability and provitamin A
content of sorghum.
WHAT WEIGHT REDUCTION
MEANS:
For every 10%
weight reduction,
fuel economy
improves by 5–7%
— saving money
at the gas pump and resulting in
fewer carbon dioxide emissions.
144MILLION
GALLONS OF GASOLINE
could be saved in 2011 if all 72
million newly built engines used
Zytel® PLUS nylon to reduce engine
component weight by 11 kg.
OVER 150
These thin-f ilm photovoltaic
modules, made by DuPont Apollo,
can deliver clean energy to power
more than 150 homes in Hong Kong
each year.
TONS
520
The energy output of the
5,500 thin-fi lm photovoltaic
modules employed there will
offset 520 tons of carbon dioxide
emissions annually.
The new
armor kit
uses DuPont™
Kevlar® for door panels plus
DuPont™ SentryGlas®
structural interlayer and
DuPont™ Spallshield®
anti-spall composite for
window protection.
60%LESS
Cars outfi tted
with the DuPont™
Armura® armor kit
weigh 60% less
than those with
traditional armoring — adding less
than 198 lbs to the total vehicle
weight (vs. 450 lbs) and reducing
costs and fuel consumption.
DuPont Sustainable Solutions helped
MOL Group lower their overall lost
time injury rate by 40% in four years.
DuPont’s
objective in this
collaboration has
been to create a
dedicated safety
network that
extends to other
companies in the
MOL Group.
3/11/11 8:22:31 AM
F:8”
F:8.25”
F:8.25”
F:8”
Welcome to
The Global Collaboratory
DuPont science is driving inclusive innovation to help
solve the world’s greatest challenges.
As the world’s population approaches seven billion, we face
unprecedented challenges. Solutions to many of them can be
found in DuPont science. But providing for the food, energy
and protection needs of a growing population will require
more than DuPont science. So we are building alliances
with people, companies, governments and organizations
around the world in an effort to improve the lives of people
everywhere. That’s how DuPont thinks and works today.
And we’re pleased to say, it’s working very well.
Together, we can accomplish what no one can do alone.
Together, we can nourish a growing population.
To help feed the world’s rapidly expanding population, DuPont is investing 60% of
our research and development dollars to help the world’s growing population produce
enough food. From advancing the nutritional content of crops, to helping farmers
and growers around the world increase their yields, to fi nding better ways to ensure
food safety, we’re working every day to get more good food to more people.
Together, we can build a secure energy future.
By 2035, global demand for energy will increase by 36%. DuPont is uniquely
positioned to address the rising demand for secure, environmentally sustainable
and affordable energy sources. With a growing population, we will need to use
our existing resources more responsibly and fi nd new and cleaner energy sources.
DuPont is applying deep expertise in microbiology, fermentation, polymer science
and electrochemistry to help make cars lighter, fuels cleaner, and sustainable energy
sources, such as the sun, easier to harness — all contributing to a brighter energy future.
Together, we can make the world a safer place.
A more populous world is not always a safer one. Working to ensure better safety and
security for people and the environment, DuPont is working with manufacturers
and governments to adapt protective materials, such as DuPontTM Kevlar® fi ber, to
automobile and structural designs — fulfi lling the needs of security-conscious
markets. DuPont offers collaborative consulting and solutions-driven technologies
and services that help organizations transform their workplaces and work cultures
to become safer, more effi cient and more environmentally sustainable.
INCREASING YIELDS STARTS WITH
PROTECTION FROM PESTS.
DERIVING BETTER NUTRITION
FROM EVERY SEED.
LIGHTENING THE LOAD FOR
FOSSIL-FUEL-POWERED VEHICLES.
EXTRACTING ENERGY FROM THE
SKY INSTEAD OF THE GROUND.
MAKING PERSONAL SAFETY
ACCESSIBLE AND AFFORDABLE.
EMBEDDING SAFETY INTO
AN INDUSTRY’S CULTURE.
DuPont™ Steward® and DuPont™ Altacor® insect control products
are helping growers in Spain protect their tomato yields from
Tuta absoluta, a highly destructive pest.
DuPont scientists are working with the Africa Biofortifi ed Sorghum
Project — a public-private collaborative team dedicated to fortifying
sorghum, the primary dietary staple of 300 million people.
Using lighter-weight, high-performance moldable automotive
parts made of DuPont™ Zytel® PLUS nylon makes cars lighter and
improves fuel economy.
DuPont Apollo collaborated with HK Electric and government
agencies to create the largest thin-fi lm photovoltaic rooftop installation
in Hong Kong — capable of generating 620,000 kWh annually.
Working with leading armor installers and car companies,
DuPont Brazil developed the Armura® armor kit, a retrofi t that
makes car armor 50% more affordable for people in Brazil.
Collaborating with MOL Group, an international oil and gas
company, DuPont Sustainable Solutions consultants were able to
signifi cantly improve the workplace safety culture at MOL.
002226-01E-8PanelBrochure.1.indd 2
DuPont Crop
Protection brought
in experts from
Brazil to help Spain’s
agricultural leaders
develop strategies for
managing this invasive
pest, which originated
in South America.
1BILLION
KG OF TOMATOES
are exported from Spain
each year, making it one of
the world’s leading exporters
of fresh tomatoes.
A fellowship program
sponsored by Pioneer
Hi-Bred has brought
12 African scientists
to Pioneer’s U.S.
headquarters to work
on the project side
by side with Pioneer
researchers.
The Africa Biofortifi ed Sorghum team
is applying science and technology
to enhance protein digestibility, iron
and zinc availability and provitamin A
content of sorghum.
WHAT WEIGHT REDUCTION
MEANS:
For every 10%
weight reduction,
fuel economy
improves by 5–7%
— saving money
at the gas pump and resulting in
fewer carbon dioxide emissions.
144MILLION
GALLONS OF GASOLINE
could be saved in 2011 if all 72
million newly built engines used
Zytel® PLUS nylon to reduce engine
component weight by 11 kg.
OVER 150
These thin-f ilm photovoltaic
modules, made by DuPont Apollo,
can deliver clean energy to power
more than 150 homes in Hong Kong
each year.
TONS
520
The energy output of the
5,500 thin-fi lm photovoltaic
modules employed there will
offset 520 tons of carbon dioxide
emissions annually.
The new
armor kit
uses DuPont™
Kevlar® for door panels plus
DuPont™ SentryGlas®
structural interlayer and
DuPont™ Spallshield®
anti-spall composite for
window protection.
60%LESS
Cars outfi tted
with the DuPont™
Armura® armor kit
weigh 60% less
than those with
traditional armoring — adding less
than 198 lbs to the total vehicle
weight (vs. 450 lbs) and reducing
costs and fuel consumption.
DuPont Sustainable Solutions helped
MOL Group lower their overall lost
time injury rate by 40% in four years.
DuPont’s
objective in this
collaboration has
been to create a
dedicated safety
network that
extends to other
companies in the
MOL Group.
3/11/11 8:22:31 AM
F:8”
F:8.25”
F:8.25”
F:8”
Welcome to
The Global Collaboratory
DuPont science is driving inclusive innovation to help
solve the world’s greatest challenges.
As the world’s population approaches seven billion, we face
unprecedented challenges. Solutions to many of them can be
found in DuPont science. But providing for the food, energy
and protection needs of a growing population will require
more than DuPont science. So we are building alliances
with people, companies, governments and organizations
around the world in an effort to improve the lives of people
everywhere. That’s how DuPont thinks and works today.
And we’re pleased to say, it’s working very well.
Together, we can accomplish what no one can do alone.
Together, we can nourish a growing population.
To help feed the world’s rapidly expanding population, DuPont is investing 60% of
our research and development dollars to help the world’s growing population produce
enough food. From advancing the nutritional content of crops, to helping farmers
and growers around the world increase their yields, to fi nding better ways to ensure
food safety, we’re working every day to get more good food to more people.
Together, we can build a secure energy future.
By 2035, global demand for energy will increase by 36%. DuPont is uniquely
positioned to address the rising demand for secure, environmentally sustainable
and affordable energy sources. With a growing population, we will need to use
our existing resources more responsibly and fi nd new and cleaner energy sources.
DuPont is applying deep expertise in microbiology, fermentation, polymer science
and electrochemistry to help make cars lighter, fuels cleaner, and sustainable energy
sources, such as the sun, easier to harness — all contributing to a brighter energy future.
Together, we can make the world a safer place.
A more populous world is not always a safer one. Working to ensure better safety and
security for people and the environment, DuPont is working with manufacturers
and governments to adapt protective materials, such as DuPontTM Kevlar® fi ber, to
automobile and structural designs — fulfi lling the needs of security-conscious
markets. DuPont offers collaborative consulting and solutions-driven technologies
and services that help organizations transform their workplaces and work cultures
to become safer, more effi cient and more environmentally sustainable.
INCREASING YIELDS STARTS WITH
PROTECTION FROM PESTS.
DERIVING BETTER NUTRITION
FROM EVERY SEED.
LIGHTENING THE LOAD FOR
FOSSIL-FUEL-POWERED VEHICLES.
EXTRACTING ENERGY FROM THE
SKY INSTEAD OF THE GROUND.
MAKING PERSONAL SAFETY
ACCESSIBLE AND AFFORDABLE.
EMBEDDING SAFETY INTO
AN INDUSTRY’S CULTURE.
DuPont™ Steward® and DuPont™ Altacor® insect control products
are helping growers in Spain protect their tomato yields from
Tuta absoluta, a highly destructive pest.
DuPont scientists are working with the Africa Biofortifi ed Sorghum
Project — a public-private collaborative team dedicated to fortifying
sorghum, the primary dietary staple of 300 million people.
Using lighter-weight, high-performance moldable automotive
parts made of DuPont™ Zytel® PLUS nylon makes cars lighter and
improves fuel economy.
DuPont Apollo collaborated with HK Electric and government
agencies to create the largest thin-fi lm photovoltaic rooftop installation
in Hong Kong — capable of generating 620,000 kWh annually.
Working with leading armor installers and car companies,
DuPont Brazil developed the Armura® armor kit, a retrofi t that
makes car armor 50% more affordable for people in Brazil.
Collaborating with MOL Group, an international oil and gas
company, DuPont Sustainable Solutions consultants were able to
signifi cantly improve the workplace safety culture at MOL.
002226-01E-8PanelBrochure.1.indd 2
DuPont Crop
Protection brought
in experts from
Brazil to help Spain’s
agricultural leaders
develop strategies for
managing this invasive
pest, which originated
in South America.
1BILLION
KG OF TOMATOES
are exported from Spain
each year, making it one of
the world’s leading exporters
of fresh tomatoes.
A fellowship program
sponsored by Pioneer
Hi-Bred has brought
12 African scientists
to Pioneer’s U.S.
headquarters to work
on the project side
by side with Pioneer
researchers.
The Africa Biofortifi ed Sorghum team
is applying science and technology
to enhance protein digestibility, iron
and zinc availability and provitamin A
content of sorghum.
WHAT WEIGHT REDUCTION
MEANS:
For every 10%
weight reduction,
fuel economy
improves by 5–7%
— saving money
at the gas pump and resulting in
fewer carbon dioxide emissions.
144MILLION
GALLONS OF GASOLINE
could be saved in 2011 if all 72
million newly built engines used
Zytel® PLUS nylon to reduce engine
component weight by 11 kg.
OVER 150
These thin-f ilm photovoltaic
modules, made by DuPont Apollo,
can deliver clean energy to power
more than 150 homes in Hong Kong
each year.
TONS
520
The energy output of the
5,500 thin-fi lm photovoltaic
modules employed there will
offset 520 tons of carbon dioxide
emissions annually.
The new
armor kit
uses DuPont™
Kevlar® for door panels plus
DuPont™ SentryGlas®
structural interlayer and
DuPont™ Spallshield®
anti-spall composite for
window protection.
60%LESS
Cars outfi tted
with the DuPont™
Armura® armor kit
weigh 60% less
than those with
traditional armoring — adding less
than 198 lbs to the total vehicle
weight (vs. 450 lbs) and reducing
costs and fuel consumption.
DuPont Sustainable Solutions helped
MOL Group lower their overall lost
time injury rate by 40% in four years.
DuPont’s
objective in this
collaboration has
been to create a
dedicated safety
network that
extends to other
companies in the
MOL Group.
3/11/11 8:22:31 AM
F:8”
F:8.25”
F:8.25”
F:8”
Welcome to
The Global Collaboratory
DuPont science is driving inclusive innovation to help
solve the world’s greatest challenges.
As the world’s population approaches seven billion, we face
unprecedented challenges. Solutions to many of them can be
found in DuPont science. But providing for the food, energy
and protection needs of a growing population will require
more than DuPont science. So we are building alliances
with people, companies, governments and organizations
around the world in an effort to improve the lives of people
everywhere. That’s how DuPont thinks and works today.
And we’re pleased to say, it’s working very well.
Together, we can accomplish what no one can do alone.
Together, we can nourish a growing population.
To help feed the world’s rapidly expanding population, DuPont is investing 60% of
our research and development dollars to help the world’s growing population produce
enough food. From advancing the nutritional content of crops, to helping farmers
and growers around the world increase their yields, to fi nding better ways to ensure
food safety, we’re working every day to get more good food to more people.
Together, we can build a secure energy future.
By 2035, global demand for energy will increase by 36%. DuPont is uniquely
positioned to address the rising demand for secure, environmentally sustainable
and affordable energy sources. With a growing population, we will need to use
our existing resources more responsibly and fi nd new and cleaner energy sources.
DuPont is applying deep expertise in microbiology, fermentation, polymer science
and electrochemistry to help make cars lighter, fuels cleaner, and sustainable energy
sources, such as the sun, easier to harness — all contributing to a brighter energy future.
Together, we can make the world a safer place.
A more populous world is not always a safer one. Working to ensure better safety and
security for people and the environment, DuPont is working with manufacturers
and governments to adapt protective materials, such as DuPontTM Kevlar® fi ber, to
automobile and structural designs — fulfi lling the needs of security-conscious
markets. DuPont offers collaborative consulting and solutions-driven technologies
and services that help organizations transform their workplaces and work cultures
to become safer, more effi cient and more environmentally sustainable.
INCREASING YIELDS STARTS WITH
PROTECTION FROM PESTS.
DERIVING BETTER NUTRITION
FROM EVERY SEED.
LIGHTENING THE LOAD FOR
FOSSIL-FUEL-POWERED VEHICLES.
EXTRACTING ENERGY FROM THE
SKY INSTEAD OF THE GROUND.
MAKING PERSONAL SAFETY
ACCESSIBLE AND AFFORDABLE.
EMBEDDING SAFETY INTO
AN INDUSTRY’S CULTURE.
DuPont™ Steward® and DuPont™ Altacor® insect control products
are helping growers in Spain protect their tomato yields from
Tuta absoluta, a highly destructive pest.
DuPont scientists are working with the Africa Biofortifi ed Sorghum
Project — a public-private collaborative team dedicated to fortifying
sorghum, the primary dietary staple of 300 million people.
Using lighter-weight, high-performance moldable automotive
parts made of DuPont™ Zytel® PLUS nylon makes cars lighter and
improves fuel economy.
DuPont Apollo collaborated with HK Electric and government
agencies to create the largest thin-fi lm photovoltaic rooftop installation
in Hong Kong — capable of generating 620,000 kWh annually.
Working with leading armor installers and car companies,
DuPont Brazil developed the Armura® armor kit, a retrofi t that
makes car armor 50% more affordable for people in Brazil.
Collaborating with MOL Group, an international oil and gas
company, DuPont Sustainable Solutions consultants were able to
signifi cantly improve the workplace safety culture at MOL.
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DuPont Crop
Protection brought
in experts from
Brazil to help Spain’s
agricultural leaders
develop strategies for
managing this invasive
pest, which originated
in South America.
1BILLION
KG OF TOMATOES
are exported from Spain
each year, making it one of
the world’s leading exporters
of fresh tomatoes.
A fellowship program
sponsored by Pioneer
Hi-Bred has brought
12 African scientists
to Pioneer’s U.S.
headquarters to work
on the project side
by side with Pioneer
researchers.
The Africa Biofortifi ed Sorghum team
is applying science and technology
to enhance protein digestibility, iron
and zinc availability and provitamin A
content of sorghum.
WHAT WEIGHT REDUCTION
MEANS:
For every 10%
weight reduction,
fuel economy
improves by 5–7%
— saving money
at the gas pump and resulting in
fewer carbon dioxide emissions.
144MILLION
GALLONS OF GASOLINE
could be saved in 2011 if all 72
million newly built engines used
Zytel® PLUS nylon to reduce engine
component weight by 11 kg.
OVER 150
These thin-f ilm photovoltaic
modules, made by DuPont Apollo,
can deliver clean energy to power
more than 150 homes in Hong Kong
each year.
TONS
520
The energy output of the
5,500 thin-fi lm photovoltaic
modules employed there will
offset 520 tons of carbon dioxide
emissions annually.
The new
armor kit
uses DuPont™
Kevlar® for door panels plus
DuPont™ SentryGlas®
structural interlayer and
DuPont™ Spallshield®
anti-spall composite for
window protection.
60%LESS
Cars outfi tted
with the DuPont™
Armura® armor kit
weigh 60% less
than those with
traditional armoring — adding less
than 198 lbs to the total vehicle
weight (vs. 450 lbs) and reducing
costs and fuel consumption.
DuPont Sustainable Solutions helped
MOL Group lower their overall lost
time injury rate by 40% in four years.
DuPont’s
objective in this
collaboration has
been to create a
dedicated safety
network that
extends to other
companies in the
MOL Group.
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vehicles and energy-effi cient products will outpace demand
for more traditional applications for our materials. And
we expect the Safety & Protection top-line to grow at 8 to
10 percent over the same fi ve-year period.
Our Engine of Innovation
In 2010, we introduced 1,786 new products and fi led
2,034 U.S. patent applications. About 85 percent of our
R&D resources supported growth areas related to the
megatrends. Developing markets are important because
of the long-term growth opportunity they represent.
Nearly all the world’s population growth is taking place
in developing countries.
Because of that, we have been growing our science and
technology footprint globally, with major investments in
new technology centers in China, India and Brazil. At
each location, we have the technical capability to respond
to customer needs with a cycle time commensurate
with the blistering pace of growth in these markets.
It is paying off. In Greater China we exceeded
$3 billion in sales in 2010. Much of that growth resulted
from applications development and technical
marketing capability we put in place in China during
the last 5 years. Meanwhile, customers in developing
markets also look to access the totality of DuPont
science and technology. We are responding by
leveraging our major R&D centers in Delaware,
Iowa, Switzerland and Germany.
Focused on Delivering Results
All our business segments made excellent progress in 2010.
We expect to deliver our original 2012 earnings per
share target one year ahead of plan. Th ree of our business
segments met or beat their 2012 margin target in 2010,
two years ahead of plan, and we are raising the bar on our
segment fi nancial targets with even more aggressive goals.
We are committed to growing underlying earnings per
share 12 percent compounded annually through 2015 by
diff erentiating our company through:
•
innovation fueled by the megatrends;
•
sustainable growth achieved by diff erentially
managing our portfolio;
•
ongoing productivity, with targets that are
externally benchmarked for each business.
You can expect us to exercise good fi nancial discipline,
make decisions and take actions in support of a strong
balance sheet that gives us the fl exibility to pursue growth
opportunities while providing attractive returns to you, our
shareholders. We are very excited about our future. Focused
on markets and driven by innovation and productivity, we
have established goals to make 2011 another exceptional
year for our company.
Ellen Kullman
Chair of the Board &
Chief Executive Offi cer
March 1, 2011
NET SALES (dollars in billions)
EARNINGS PER SHARE 1 (dollars)
DIVIDEND PAYMENTS (dividends per share in dollars)
30.5
29.4
27.4
26.1
31.5
35
30
25
20
15
10
3.50
3.00
2.50
2.00
1.50
1.00
3.28
3.28
2.00
2.88
2.78
2.03
1.64
1.40 1.46
1.02
.81
1.50
1.00
.46
.50
.50
1ST
DIVIDEND
PAID
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
1904
1980
1985 1990 1995 2000 2005 2010
1 Be fore si gn i f ic an t i t ems
OUR MISSION: SUSTAINABLE GROWTH
The creation of shareholder and societal value while we reduce our
environmental footprint along the value chains in which we operate.
DuPont Agriculture
& Nutrition
Businesses:
Pioneer Hi-Bred | Crop
Protection | Nutrition &
Health
Mission:
Grow aggressively
through innovative
products and services
that help the world
increase the quantity,
quality, safety and
sustainability of our
food supply.
Core Markets:
Production Agriculture |
Food & Nutrition Products
DuPont Electronics
& Communications
Mission:
Focused growth through
supplying enabling
materials and systems
for photovoltaics,
electronics, fl at panel
displays and advanced
printing.
Core Markets:
Photovoltaics |
Consumer Electronics |
Advanced Printing |
Displays
DuPont Performance
Chemicals
Businesses:
Titanium Technologies |
Chemicals & Fluoroproducts
Mission:
Accelerate earnings and
cash growth through
cost and working capital
productivity and
selected investments in
higher-growth markets,
regions and technologies
to achieve top quartile
performance among
peer global specialty
chemical manufacturers.
Core Markets:
Construction | Specialties |
Industrials & Chemicals
DuPont Performance
Coatings
Mission:
Deliver earnings and
cash growth through
cost and working capital
productivity while making
only very selective growth
investments, so that
top quartile fi nancial
performance among
global industry peers is
achieved.
Core Markets:
Automotive OEM |
Collision Repair |
Industrial Coatings
DuPont Performance
Materials
Businesses:
Performance Polymers |
Packaging & Industrial
Polymers
Mission:
Deliver earnings and
cash growth through
cost and working capital
productivity while
making selective growth
investments, providing
innovative materials
and expert applications
development that enhance
customers’ product
performance, improve
sustainability and reduce
total system cost.
Core Markets:
Automotive | Packaging |
Electrical/Electronics |
Construction |
Consumer Durables
DuPont Safety
& Protection
Businesses:
Protection Technologies |
Building Innovations |
Sustainable Solutions
Mission:
Grow aggressively
by being the global
innovation leader in
engineered products,
services and systems
that protect lives, the
environment and
critical processes and
provide sustainable
building solutions.
Core Markets:
Industrial Personal
Protection | Construction |
Industrial | Military and
Law Enforcement
2010 SALES BY SEGMENT
Net Sales
$31.5 B
Safety &
Protection
Other
1%
10%
Agriculture
& Nutrition
Performance
Materials
20%
12%
Performance
Coatings
28%
9%
20%
Electronics &
Communications
Performance
Chemicals
2010 NET SALES BY REGION
Developing
Asia
14%
Developed
Asia
9%
Developing
EMEA**
North
America*
39%
7 %
19%
12%
Latin
America
Developed
EMEA**
* U.S. & Canada
** Europe, Middle East & Africa
This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including
statements about the company’s strategy for growth, product development, market position, expected expenditures and fi nancial results, are forward-looking statements. Some of the forward-looking statements
may be identifi ed by words like “expects,” “anticipates,” “plans,” “intends,” “projects,” and “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of
risks, uncertainties and assumptions. Many factors, including those discussed more fully in documents fi led with the Securities and Exchange Commission by DuPont, particularly its 2010 Annual Report on Form
10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions, including infl ation,
interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions,
divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products. The company
undertakes no duty to update any forward-looking statements as a result of future developments or new information.
Use of Non-GAAP Measures: This annual review includes company information that does not conform to generally accepted accounting principles (GAAP), including measures which exclude signifi cant items
such as underlying pretax operating income, underlying earnings per share and free cash fl ow. Free cash fl ow is defi ned as cash fl ow provided by operating activities less purchases of property, plant and equipment
and less investments in affi liates. Non-GAAP measures are not a substitute for GAAP results. Signifi cant items represent special charges or credits that are important to an understanding of the company’s ongoing
operations. The company uses non-GAAP measures to evaluate and manage the company’s operations. 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 fi nancial results of the company. The determination of signifi cant items and these measures may not be comparable to
similarly titled measures provided by other companies. A reconciliation of non-GAAP measures to GAAP results is provided on the company’s website at www.dupont.com under the heading Investor Center, or
as furnished in the company’s SEC fi lings on Form 8-K, which are available at www.sec.gov.
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 Releases link on the
Investor Center at www.dupont.com.
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™ and all products denoted with ™ and ® are trademarks or registered trademarks of DuPont or its affi liates.
Photo of Ellen Kullman courtesy of AP Images.
Produced with DuPont proofi ng products.
2010 DUPONT ANNUAL REVIEW
Delivering solutions, delivering growth
through inclusive innovation.
To DuPont Shareholders
DuPont excelled in 2010. We came through 2009
focused on business fundamentals and established
a solid foundation as we emerged stronger from the
economic downturn. In 2010, we delivered superior
performance in terms of growth, productivity and
operating leverage. We managed our portfolio
differentially, setting
aggressive goals for each
business. We fi nished
the year ahead of our
fi xed cost and working
capital productivity goals.
We outperformed our
competition and worked
hard to deliver shareholder
value to earn investor
trust and confi dence.
Now, in 2011, we have the
Ellen Kullman
momentum to deliver continued growth, innovation
and expanded margins.
There are even better things to come. Through 2015,
we expect underlying earnings per share growth of about
12 percent compounded annually. We have attractive
growth opportunities supported by market-driven
science and fueled by global megatrends associated
with population growth. We are allocating resources
to drive the highest growth opportunities. Productivity
will continue to be a cornerstone of how we operate
our company.
We measured our performance in 2010 opposite a set
of Directives that we adopted to drive our results.
Here’s how we did:
• Revenue and earnings growth – In revenue growth
we far exceeded the 10 percent target we set, and ended the
year up 21 percent. Earnings per share grew more than
60 percent. Notable growth areas included: an extremely
strong photovoltaic market; increased automotive builds;
a faster rate of restocking in the first half of the year;
stronger-than-expected recovery in developed markets;
continued strength in agriculture and continued growth
in developing markets.
Innovation – In 2010, 31 percent of our sales came
•
from products that were introduced within the past 4 years,
clearly showing our market-driven science is meeting market
needs. We met major milestones for progress in our new
growth area of biofuels and biomaterials development.
• Fixed cost and working capital productivity – We
finished ahead of plan and gained momentum. Late in
2010, we announced goals for an additional $300 million
in both categories to be delivered in 2011.
• Free cash fl ow – We ended the year with a very strong
balance sheet and exceeded our target of “greater than
$1.7 billion” free cash fl ow, generating $3.1 billion.
Th is was in spite of the fact that we made a $500 million
voluntary contribution to the principal U.S. pension plan.
These outstanding accomplishments were made possible
by DuPont employees around the world who continue
to demonstrate exceptional
creativity and commitment
to our company’s goals while
remaining true to the core values
that distinguish DuPont and
our proud 208-year heritage.
DuPont
Core Values
• Safety
and Health
Megatrends Drive Growth
DuPont is uniquely positioned
to collaborate with customers,
business partners, governments
and public-private partnerships
to tackle big global challenges
that off er the opportunity for
signifi cant top-line growth and
value creation.
• Environmental
Stewardship
• Highest
Ethical Behavior
• Respect
for People
Global population will pass the 7 billion mark in 2011 and
exceed 9 billion people by 2050 – or about 150,000 more
people on the planet every day. Th is will translate into
critical needs in the areas of feeding the world, reducing
our dependence on fossil fuels and keeping people and
the environment safe – the megatrends that are driving
our science and innovation and hence our company growth.
Our businesses that are directly aligned with these megatrends
are profi tably growing at a pace above company average.
For example, we expect our Agriculture & Nutrition segment
to continue to grow sales at a rate of 8 to 10 percent per
year over the coming 5 years. Th e growth forecast for
photovoltaics is even stronger. Demand for lightweighting
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