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DELIVERING SOLUTIONS. DELIVERING GROWTH. Delivering Growth in Delivering Growth in Asia through Innovation Carl L kach Carl Lukach President – DuPont East Asia November 7, 2011 © 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.
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Page 1: Lukach   clsa - final final

DELIVERING SOLUTIONS. DELIVERING GROWTH.

Delivering Growth inDelivering Growth in Asia through InnovationCarl L kachCarl LukachPresident – DuPont East Asia

November 7, 2011

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

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Th h d h i l d i f i h d f ll d iRegulation G

The attached charts include company information that does not conform to generally accepted accounting principles (GAAP). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the company and allows investors to better evaluate the financial results of the company. These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companiescompanies.

This data should be read in conjunction with previously published company reports on forms 10-K, 10-Q, and 8-K. These reports, along with reconciliations on non-GAAP measures to GAAP results are available on the Investor Center of www.dupont.com.

Forward Looking StatementsDuring the course of this presentation we may make forward-looking statements or provide forward-looking information. All statements that address expectations or projections about the future are forward-looking statements. Some of these statements include words such as “plans,” “expects,” “will,” "believes," “intends,” and “estimates ” Although they reflect our current expectations these statements are not guarantees of futureestimates. Although they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of risks, uncertainties, and assumptions. Some of those risk factors include: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; global economic and capital markets conditions; litigation and environmental matters; changes in laws and regulations or political conditions; and business or supply disruptions. The Company does not undertake to update any forward-looking statements as a result of future developments or new information.undertake to update any forward looking statements as a result of future developments or new information.

Developing MarketsTotal developing markets is comprised of Developing Asia, Developing Europe, Middle East & Africa, and Latin America. A detailed list of all developing countries is available on the Earnings News Release link on the Investor

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

Center website at www.dupont.com.

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DUPONT FULL YEAR FINANCIAL HIGHLIGHTS

Full Year Sales2010: $31.5B, +21% $38-$39$ ,2011E: $38-39B, +22%

$ in

Billi

ons

Full Year EPS*2010: $3.28, +62%2011E: $3 97 $4 05 +22% e

$3.97 - $4.05

2011E: $3.97-$4.05, +22%

$ pe

r sha

reDividendAnnounced our 429th consecutive quarterly dividendMaintained our dividend during the recession

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. * Excludes significant items. Refer to company website for detailed reconciliations of non-GAAP measures.

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OUR INDUSTRY LEADERSHIP IN SCIENCEExternal recognitionExternal recognition

#1 in our industry for patent strength (The Patent Board)Five consecutive years for this award

Top 50 Innovative Companies (MIT Review)

Five consecutive years for this award

Awarded in 2010 to firms that show the most innovation in commercializing new technologies

World’s Most Admired Companies Top 50 (Fortune)The only company in our sector to be named to this list

Zytel® PLUS “Most Innovative Use of Plastics Award” (SPE)A collaboration with General Motors for use of Zytel® PLUS in an engine cover application

Best Place to Work in Large Industry (The Scientist)DuPont earned the top spot, Pioneer was number two

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 4

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WE ARE APPLYING OUR SCIENCET fi d l ti t ll bi h llTo find solutions to some really big challenges:

FOOD ENERGY PROTECTION

FEEDING THE REDUCING OUR KEEPING PEOPLE &FEEDING THE WORLD

REDUCING OUR DEPENDENCE ON

FOSSIL FUELS

KEEPING PEOPLE & THE ENVIRONMENT

SAFE

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 5

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TWO BILLION MORE PEOPLE BY 2050G th i i d l i i i l di A iGrowth occurring in developing regions including Asia

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. Source: United Nations population division (2011)

Implications: need 70% more food production, additional energy to meet the growth

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ONE BILLION MORE MIDDLE CLASS BY 2020Middl l th t t d i A iMiddle class growth concentrated in Asia

millionmillion

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. Source: Organization for Economic Cooperation and Development paper 285 (2010)

Implications: rising incomes, more consumption of protein, and an enhanced lifestyle

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DUPONT GROWTH STRATEGYDriving innovation productivity and growth in developing marketsDriving innovation, productivity, and growth in developing markets

2010 Global pro forma sales $34.2B2010 Global pro forma sales $34.2BDeveloping regions: $11.1B or 32% Developing regions: $11.1B or 32%

Asia ‐Developing

14%

Growing:Asia contributed to 23% of 2010 pro forma revenue and growing

US36%

Asia ‐Developed

9%

Broadening market access:The Danisco acquisition has broadened our reach in enzymes

EMEA‐Developing

7%

and food

Megatrends:Food energy and protection are

Canada3%

Latin America11%

EMEA ‐Developed 

20%

Food, energy, and protection are increasing in importance for developing markets

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

11%

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DUPONT GROWTH STRATEGYBuilding three world leading integrated competenciesBuilding three world-leading, integrated competencies

As a premier market-driven science company,As a premier market driven science company, we will generate superior shareholder returns by integrating

across the ag-biotech-material space:

Ag & Nutrition Advanced Materials

SeedsTraits

Ag Chemicals

Materials

Electronic MaterialsProtective MaterialsAlternative Energy

Specialty FoodIngredients

Alternative EnergyAdvanced PolymersAdvanced Processes

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 9

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INVESTING FOR GROWTHDuPont 2010 pro forma R&DTo be a premier market-driven science company and generate superior shareholder returns by differentially managing our portfolio:

DuPont 2010 pro forma R&D

Decreasing Dependence on Fossil Fuels

15%

11%

Protecting People and the Environment

MegatrendsChemistry

Engineering 11%

9%60%Chemicals and

M i l

Increasing Food Production

Engineering

Materials Science

Nanotechnology

Industrial Biotech

Ag Biotech

5%

Materials

Electronics

Ag Biotech

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 10

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DUPONT ASIA PACIFIC GROWTH20% revenue growth for 2011E~20% revenue growth for 2011E

~20%$

• Growth led by electronics, automotive, packaging, and agriculture

5 5

7.3

Revenue, $ BillionsExcluding joint ventures

• Geographic expansion and market penetration playing a

5.5 5.2

key role

2008 2009 2010 2011E

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

Demonstrated growth through market-driven science11

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GROWTH DRIVERS FOR DUPONT IN ASIA PACIFIC

FOUR ELEMENTS:FOUR ELEMENTS:TECHNOLOGY DRIVEN GROWTH

P f P l f t• Performance Polymers for auto• Emerging bio-based polymers• Advanced photovoltaic materials• New crop protection & seed products

In economies with GDP

growth rates

MARKET PENETRATION GROWTH• China “Go West” program• India g

2-3X developed markets

• ASEAN• New products for local markets

GROW WITH GLOBAL INDUSTRY LEADERSGROW WITH GLOBAL INDUSTRY LEADERS• Automotive• Electronics

GROWTH IN NEW MARKETS

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 12

GROWTH IN NEW MARKETS• Food• Energy

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DUPONT IN GREATER CHINAabout 22% sales growth from 2010 to 2011Eabout 22% sales growth from 2010 to 2011E

24% CAGR

Revenue, $ BillionsExcluding joint ventures

24% CAGR 2008-2011E

Plants

R&D/Technical Centers

Offices

Joint Ventures

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

DuPont’s innovation strategy in China targets large new markets

13

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CHINA’S 12th 5-YEAR PLANHighlights Major Opportunities Relevant to DuPontHighlights Major Opportunities Relevant to DuPont

Global Megatrends China Opportunities Implication

• Higher yields • Pioneer • P&IP

• Increasing food production

Increasing food production & safety

Decreasing dependence on

• Advanced techonology in agriculture

• Food quality • Food safety

• New energy • Energy efficiency

• Pioneer • Solae• DCP• Animal Health

• DPVS• Bio - fuel & Bio - material

DPP

• P&IP• Qualicon• Food industry

board

• Decreasing dependence on fossil fuels

Decreasing dependence on fossil fuels

gy y• New materials• Bio-material

• DPP • DC&F• Industry board – Wind, Railway

Protecting lives & environment

• Water treatment & conservation• Emission reduction• New materials

• DSS• DC&F• DPT

• P&IP• E&C

• Protecting livesGrowing in emerging

markets, urbanization & infrastructure development

• Construction• Infrastructure• Electricity grid• Mass transportation

• BI• DPP• DTT• DPC• DPT

• industry board –Auto, Food

• P&IP

• Clean Technology • BI

• Growing in developing

k t

Increasing people’s disposable income

• Automotive• Construction• Consumer goods & food• Electronics & communications

DPT

• DPC• BI• DTT• Solae• E&C

DC&F

• industry board –Auto, Food, 3C

• P&IP

DPC

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

marketsIndustry restructuring & indigenous innovation

• Agriculture modernization• Upgrading traditional industries• Develop new strategic industries• Services sector developmt

• DC&F• DCP• Pioneer• Solae• DPP

• DPC• DPT• DTT• E&C• P&IP

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DELIVERING SOLUTIONS IN CHINAChina Technical Center enables market driven innovationChina Technical Center enables market-driven innovation

$400

REVENUE FROM NEW PRODUCTS

$Millions

$200

$300

$400

2008

$-

$100

2007 2010

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

New products drive differentiation in the marketplace

15

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DUPONT IN INDIA

Revenue, $ BillionsExcluding joint ventures

22% CAGR2008-2011E

PLANTS

KNOWLEDGE CENTER

Medhcal Plant

Chennai Office Madurai Plant

DISTRIBUTION CENTERS

OFFICES

TECHNICAL CENTERS

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 16

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DUPONT IN INDIA

•New seeds•Large mid-tier segment

AGRICULTURE

•Solae offering in India staple food•Penetration with Danisco offerings

FOOD

• India hub for small cars & components• Increased penetration

AUTO

•Off grid applicationsPV

•Fresh fruits & vegetablesPACKAGING

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

DuPont’s Innovation Strategy in India targets the domestic market17

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INDIA TRENDS AND DUPONT OPPORTUNITIES

GROWTH TREND IMPLICATIONS

• High yield hybridsAGRICULTURE • Higher productivity

• Advanced technologies

• High yield hybrids• Crop protection products• Agri supply chains

INFRASTRUCTURE• Public & private investment• Roads, railways and defense

expenditure• Construction growth

• Pigments for coatings• Asphalt modifiers• Eng polymers, Adv mat’ls• Building Materials

ENERGY & AUTOMOTIVE

• Small car hub• Energy demand• Renewable energy

• Eng Polymers, Refinishes, Refrigerants

• Photovoltaics• Nomex® advanced mat’ls

DEMOGRAPHICS• Higher disposable income• Consumerism and retail• Better quality safer food

• Mat’ls for electronics & durables

• Advanced pkg sol’ns

• Nomex®, advanced mat ls

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

Better quality, safer food• Nutrition products

Confluence of large market, strong local R&D and global leverage18

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DUPONT IN ASEANPlants

Offices

1 0

Revenue, $ BillionsExcluding joint ventures

13% CAGR2008-2011E

0 5

1.0 2008-2011E

0.0

0.5

0.02008 2009 2010 2011E

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 19

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UNIQUE ASEAN MARKETSAdditional $1B sales potential in 2020Additional $1B sales potential in 2020

Increase yield, productivity, food security & health.AQUACULTUREAG & FOOD

85% of world palm oil in Malaysia & Indonesia. Increase plantation productivity and crop value.PALM OIL

Energy demand rising >2X global. Large off-grid PV need. PV module manufacturing migrating to ASEAN.PV

Large NOCs. Pipeline products and Enhanced Oil Recovery.OIL & GAS

“ASEAN- biomass” based materials, chemicals and fuels.BIOMATERIALS

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

DuPont’s Innovation Strategy in ASEAN targets unique ASEAN markets

20

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DUPONT IN JAPANDKK : DuPont Kabushiki KaishaMDP : DuPont-Mitsui Polychemicals Co.,LtdMDF : DuPont-Mitsui Fluorochemicals Co.,Ltd.TDFJ :Teijin DuPont Films Japan LimitedTDC : DuPont-Toray Co.,Ltd.8.4% CAGR

Revenue, $ Billions

2008-2011E

Remarks:- JV sales is on 100% basis.- Danisco sales are excluded.

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

16 joint ventures with leading Japanese companies significantly contribute to DuPont Japan sales

21

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JAPAN: FUTURE MARKET TRENDS & GROWTH AREAS

Growth Area for DuPont in Japan

Automotive & Hi-Speed

•HV/EV (Next Gen. Auto)•Film-Insert-Mold

Future Market Trend

Japan Market TrendsGlobal Megatrendsp

Train

Electronics

•Hi-speed Train

•LED / OLED Lighting•Commercial Printing•Medical Electronics

• Improve productivity & quality Effective field utilization

(small field, urban area etc.) Maintain good food quality for

long-term

Increasing Foodproduction

Energy

•Printable Electronics

•Photovoltaic (PV)•Energy Storage•Smart Grid

long term

• Promote low carbon society Energy saving Alternative energy

R bl d d

Decreasing Dependenceof Fossil Fuels

Bio-Related

•Smart Grid

•Renewable sourced materials

• Industrial-Bio

Renewable sourced energy and materials

• Aging society – More needs for better life (safety, health,

t i bl li i )

Protecting Lives & the Environment

Food

Medical/

•Specialty Food- Solae + Danisco

•Clean & DisinfectSt ili ti

sustainable living)

• “Emerging Hi-tech”(New technology will emerge from Japan and roll out to

Growing in EmergingMarkets

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

Medical/Healthcare •Sterilization

•Power aids

pemerging markets)

Markets

22

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JAPAN’S GLOBAL MARKET SHARE IN KEY INDUSTRIES

10,000 Information and1. Japan is leading innovator and has No.1 market share in new & emerging Automotive

Japan’s Global Market Share in Key Industries

1,000

Telecommunications

Computer and information terminals

telecommunications equipment

Automobiles

AV equipment

2. Japanese system manufacturers and material suppliers are “the incubator”for Emerging Automotive & Electronic t h l i f l b l k t

market share in new & emerging Automotive and *Electronic systems *Broadest Offering

100

obal

Mar

ket S

ize

PV modules

Digital still cameras

Telecommunicationsequipment Semiconductors

Other electronic devices

Semiconductormfg equipment

Displays

LCDs

Multilayer printed

Electronic parts

LCD materials

Monocrystalsilicon wafers

Semiconductor materialsSemiconductor

encapsulation materials

technologies for global market

Wire harness

Small motor for auto

OA

1

10Glo Multilayer printedwiring boards

Magnetic heads of HDDs

silicon wafers

LCD polarizing platesPDP panel parts materials

LiB

White LEDs

LCD fluorescent lamps

Car navigation Spindle motors for HDDs

LCD phasedifference films

End Products (AUTO) Components/Devices (Emerging Hi-Tech)

Government Support Area

OA

Car air conditionerLaminated ceramic capacitor

0.10% 25% 50% 75% 100%

Global Market Share by Japanese Companies

Hybrid carMotor / Inverter / Battery

for cell phones Semiconductor laser for optical disk drives

d oducts ( U O)

End Products (ELEC)

Co po e ts/ e ces ( e g g ec )

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

DuPont’s innovation strategy in Japan targets next-gen collaborative science for automotive & electronic applications

23Source: Ministry of Economy, Trade, and Industry (METI), Gov’t of Japan

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INNOVATION MADE REALDuPont Japan Innovation Center in NagoyaDuPont Japan Innovation Center in Nagoya

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 24

DuPont’s collaboratory is providing solutions for Japan’s leading advanced materials companies

Page 25: Lukach   clsa - final final

JAPAN INNOVATION CENTERRecent SuccessesRecent Successes

PA 610 for Radiator End TankPA 610 for Radiator End Tank• Bio-source materials (from castor oil)• Calcium chloride resistance is key performance

Bi PTT S ® fib (f b i ) f T t SAIBio PTT Sorona® fiber (fabric) for Toyota SAI• Head liner, sun visor, trim, contributed to 60% surface by Bio Material

HTN Insulator parts for HEVHTN Insulator parts for HEV•Adopted in 3rd Prius (2008), further extension/adoption is planned for 4th Prius (2014), new HV (2012) etc.•Application : Insulator parts such as power-cable connector, terminal connector, bus bar, bobbin , ,

Bio PTT Sorona® resin for Toyota Prius-alpha• Adopted for instrument-panel air-conditioning system outlet

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 25

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THE BUSINESS OF INNOVATIONNew DuPont Innovation Centers in Seoul Taipei Bangkok & PuneNew DuPont Innovation Centers in Seoul, Taipei, Bangkok & Pune

Seoul Taipei

Bangkok Pune

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

DuPont Innovation Centers to fuel local collaboration in key markets26

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KEY MESSAGES

The megatrends of food, energy, and protection resonate globallyresonate globally

In Asia, we see near-term opportunities and long-term growth tied to the growing population and expanding middle class

Our innovation reach is expanding, with new innovation centers launched in Bangkok, Pune, Seoul and Taipei.centers launched in Bangkok, Pune, Seoul and Taipei.

Our strategy is working with +20% 2011E growth in Asia

© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 27

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© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved. 28


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