DuPont Biotech Growth -...

Piper Jaffray Alternative Energy SymposiumFebruary 21, 2007

DuPont Biotech GrowthStrategy, Progress and Next Steps

© 2006 E.I. du Pont de Nemours and Company. All Rights Reserved.

John Ranieri, VP&GMDuPont Bio-Based Materials

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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 previously published company reports on forms 10-K, 10-Q and 8-K. These reports along with reconciliations of non-GAAP measures to GAAP are available on the investor center of www.dupont.com.

Forward-Looking StatementDuring the course of this presentation, I would like to remind you that we may make forward-looking statements. 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. We urge you to review DuPont's SEC filings, particularly its latest annual report on Form 10-K and quarterly reports on Form 10-Q, for a discussion of some of the factors which could cause actual results to differ materially.

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DuPont Bio-Based Strategy

Target areas of unique advantage

Shape the industry with integrated knowledge base

Partnerships to maximize value capture

Market drives value propositions

Focus on transformative opportunities:

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Biotech Growth - Building A Strong Portfolio

Enabling Technology, IP, and Commercialization Paths in All Four Areas

Mar

ket s

ize

Value in Use/Unit

Energy

Materials

Surfaces

Medical

• Biobutanol - BP• Cellulosic Ethanol - Broin

• Bio-PDO™ – Tate & Lyle• Sorona® - Glory

• TBA

• TBA

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Successful startup at Loudon, TNNew Bio-PDO™ applicationsSorona® expansions

Bio-Based MaterialsBIO-MATERIALS

The Dawn of Industrial Biotech

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Bio-PDO™ Opportunities GROWING

Bio-PDOTM

Better IngredientsBetter PolymersSorona®

Carpet & textile fibersMolded partsPackagingCoatings

Cosmetics & personal careLiquid detergentsDe-icing fluidsAntifreeze & heat transfer fluids

BIO-MATERIALS

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Biofuels: Transportation Opportunity

Source: IEA World Energy Outlook, BP.

0

500

1000

1500

2000

2500

3000

3500

4000

Transportation Stationary(Industry, Domestic,

Agriculture)

ElectricityGeneration

Inter-fuelConversion& Refining

Energy (in MM tons oil equiv./ year)

RenewablesHydroNuclearCoalGasOil

ENERGY

8


Biofuels Growth 2020 Estimates by Region

EU & Eurasia Biofuels - 20 B gals

North AmericaBiofuels > 30 B gals

South & Central America Biofuels - 7 B gals

Asia Pacific Biofuels - 30 B gals

• Current Production > 4.0 B gals• Market growth + differentiated fuels and crop inputs

• Current Production ~ 4.0 B gals• Ethanol and sugarcane well established• Cellulosic fuels opportunity

• Current Production ~ 1.1 B gals• Less existing infrastructure,

less homogeneous market

• Currently ~ 1.7 B gals• Less existing infrastructure

less homogeneous market

Source: Dept of Energy and DuPont/BP estimates

ENERGY

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Grain Ethanol and Vegetable Oil Biodiesel0

10

20

30

40

50

60

70

Bill

ion

Gal

lons

/Yea

r

Grain Ethanol

Cellulosic Ethanol

2015 2025 203020202005 2010

January 2007 State of the Union Goal

U.S. Biofuels Growth Accelerating

2006 DuPont Participation: >$300 million, growing 20+%/year

Source: NREL Projection

Source: James D. McMillan, Ph.D.National Renewable Energy

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DuPont Biofuels Strategy: 3 Segments

1. Seeds and Crop Protection: Commercial Products + Strong Pipeline

2. Cellulosic Ethanol:Develop enabling technology for rapid growth

3. Bio-butanol:Advanced fuels with unique performance

ENERGY

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1. Seeds and Crop Protection for EthanolCorn Seed Ethanol

Select Pioneer hybrids with 2-4% higher ethanol yield per bushel

Three generations of pipeline traits for higher ethanol yield and value

Bushels/acreEthanol/bushelEnhanced co-product value

Crop Protection SolutionsSugarcane – Brazil Corn – U.S. and Canada

Current Commercial Sales>$300 million in 2006 Growing > 20% per year

9697

9899

100101

102103

104105

106Commodity CornPioneer Ethanol Corn

ENERGY

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2. Cellulosic Ethanol : Developing Enabling Technology

Images: www.ca.uky.edu & www.nativeaccess.com

391 Gal/Acre

155 Gal/Acre

40 Gal/Acre

at 50%removal

rate

310 Gal/Acre

ENERGY

http://www.ca.uky.edu/

http://www.nativeaccess.com/

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Advancing Cellulosic Ethanol Fermentation

Enabling Technology: Conversion of C5 (xylose) and C6 (glucose) sugars at cost

effective yields, rates and concentrations

0

20

40

60

80

100

120

0 10 20 30 40 50

Time (hrs)

Con

cent

ratio

n (g

/L) Glucose

XyloseEthanol

Zymomonas mobilis

ENERGY

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Cellulosic Ethanol – Next StepsContinue to lead DOE projectR&D focus: further reducing the cost and investment intensityBroin collaboration to advance development and demonstration

Time

Com

mer

cial

Met

rics:

$i

nves

t/gal

, $c

ost/g

al 2002

Target

2006

Continued R&D and Pilot Testing

ENERGY

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3. Biobutanol: Next Generation Biofuel

What should an advanced biofuel be?

High energy density?

Easy to handle and blend?

Less corrosive?

Produced from multiple feedstocks?

Cost competitive with ethanol? DuPont R&D Target

Biobutanol

ENERGY

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Metabolic EngineeringTechnology leader

Leveraging our Bio-PDO™success

Engineering the cell to produce the desired fuel at competitive cost

Biobutanol: Building a Better Biofuel Enabling Technology – Cell “Software” by DuPont

Genome

Cell Factory

ENERGY

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DuPont - BP Biofuels PartnershipBiobutanol Development & Launch

BIOBUTANOL

WORLDWIDE FUEL MARKETS

• Powerful partnership• Shared commitment• Global reach • Complementary capabilities

ENERGY

RENEWABLEFEEDSTOCKS

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PRODUCTION

COST COMPETITIVE VIA DUPONT BIOTECH

TERMINAL

ENHANCED FUEL STABILITYGOOD FIT WITH EXISTING

PIPELINE INFRASTRUCTURE

REFINERY

BLEND FLEXIBILITY0 – 100% WITH

GASOLINE AND ETHANOL

RETAIL / CONSUMER

IMPROVED MPGNO VEHICLE MODIFICATION

Biobutanol SolutionImproved Performance From Renewable Sources

PIPELINE

ENERGY

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DuPont BiofuelsDevelopment Milestones

Agricultural InputsSeeds & Crop Protection

Biofuels From Biomass

Advanced FuelsButanol

Differentiated Transformative

Seed & Crop Protection Solutions • IndustrySelect™ Ethanol Hybrids - commercial• Increased Ethanol II – Phase 1• Increased Yield I – Phase 1

Biobutanol • Initial Targets Achieved• US & EU Fleet Testing Underway • UK Plant Startup and Market Intro

Cellulosic Fuels • DOE Project • Demonstration Unit• Broin Collaboration

2006 Revenue > $300 million

ENERGY

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IP Leadership

Source: Nature Biotechnology, Vol. 24 October 2006 and Vol. 23, October 2005. Based on USPTO patents.

#2#2

#3#3

#1#1

8989

8787

118118

DuPontDuPont

U.S. GovernmentU.S. Government

University of University of CaliforniaCalifornia

7373

9494

132132

PatentsPatents

#3#3

#2#2

#1#1

RankRankPatentsPatents

7575

8484

9999

#3#3

#2#2

#1#1

RankRank

2003200320052005 20042004

PatentsPatents RankRank

#4#48282Human Genome Human Genome SciencesSciences 4646 #7#75858 #5#5

#7#7

#5#5

#6#6

6565

5454

5454

GenentechGenentech

ISIS PharmaISIS Pharma

AppleraApplera

5454

5555

7878

#6#6

#5#5

#4#4

5454

4242

63 63

#7#7

#6#6

#4#4

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Biofuels Business Strategy

Ag Inputs to BiofuelsSuperior seed for more fuel/acreCrop protection for best yield at lowest cost

Biofuel ProductionBiobutanol “software”developmentMixed sugar ethanol “software development”Cellulosic conversion technology

License & Sell Ag biotech - R&D intensive, large global growth potential Leverage R&D successes with licensees

Partner, License & SellPartnership with BP to develop, make & market biobutanolDeveloping partnerships to commercialize cellulosic ethanol technology

Opportunity Commercialization

ENERGY

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Innovation Across Three Centuries

DuPont R&D Advances• Industrial Chemistry• Polymer Science• Nylon, Spandex, Teflon®

Tyvek®, Kevlar®, Nomex®, Corian®, TiO2, Suva®, etc

Hagley Powder Mills“Birthplace of DuPont”

DuPont Bio Leadership• Metabolic Engineering• Seeds: Pioneer®• Biofuels• Biomaterials: PDO™, Sorona®• Biosurfaces• Biomedical

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