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| May 4, 2015 10 1 Total Shareholder Return measured from 12/31/08 – 12/31/14. Calculated as the appreciation or depreciation of share price, plus any dividends, over a given period, expressed as a percentage of the share’s value at the beginning of the period. Assumes dividends are re-invested at the closing price applicable on the ex-dividend date. Source: Datastream. Proxy Peers: 3M, Air Products, Baxter Intl, Boeing, Caterpillar, Dow Chemical, Emerson, Honeywell, Ingersoll-Rand, Johnson Controls, Johnson and Johnson, Kimberly Clark, Merck, Monsanto, Procter and Gamble, Syngenta AG, and United Technologies. TSR reported on a market cap weighted basis. Closing prices are adjusted for spin-offs, stock splits, rights and special dividends. 2 Adjusted operating EPS compound annual growth rate is calculated from 12/31/08 –12/31/14 and is defined as diluted earnings per share from continuing operations excluding non -operating pension/OPEB costs, significant items, Performance Chemicals and Pharma. As required under U.S. GAAP, EPS from continuing operations excludes Performance Coatings for all periods presented. Reconciliations of non-GAAP measures to GAAP are included at the end of this document. 3 Total Shareholder Return measured from 12/31/08 – 3/15/13. Calculated as the appreciation or depreciation of share price, plus any dividends, over a given period, expressed as a percentage of the share’s value at the beginning of the period. Assumes dividends are re-invested at the closing price applicable on the ex-dividend date. Source: Datastream. 4 Segment sales include transfers and exclude Performance Coatings, Performance Chemicals and Other; Compounded Annual Growth Rate (CAGR) is calculated from 12/31/08 –12/31/14. 5 Adjusted operating EPS compound annual growth rate is calculated from 12/31/11 –12/31/14 and is defined as diluted earnings per share from continuing operations excluding non -operating pension/OPEB costs, significant items, Performance Chemicals and Pharma. As required under U.S. GAAP, EPS from continuing operations excludes Performance Coatings for all periods presented. Reconciliations of non-GAAP measures to GAAP are included at the end of this document. 6 Segment adjusted operating margin is based on total segment sales and segment adjusted operating earnings, excluding Performance Chemicals and Other/Pharma. Segment adjusted operating earnings are calculated using segment pre-tax operating income excluding significant items; calculations include certain corporate expenses and exclude adjusted operating earnings of Performance Chemicals and Pharma/Other. Calculation is from 12/31/08 vs. 12/31/14. Reconciliations of non-GAAP measures to GAAP are included at the end of this document. 7 Adjusted Segment EBITDA margins are based on segment sales and adjusted segment EBITDA. Adjusted Segment EBITDA calculated as segment pre-tax operating income, excluding significant items, plus depreciation and amortization; calculations include certain corporate expenses. Reconciliations of non-GAAP measures to GAAP are included at the end of this document. 8 Figure based on 2014 segment sales data, which includes transfers and excludes Performance Chemicals and Other. 9 (i) DuPont’s adjusted Segment EBITDA margins are based on segment sales and adjusted segment EBITDA. Adjusted Segment EBITDA calculated as segment pre-tax operating income, excluding significant items, plus depreciation and amortization; calculations include certain corporate expenses. See non-GAAP reconciliations at the end of this document. (ii) Peer EBITDA margins calendarized to December where possible; exclude non-recurring expenses/income where applicable and allocate corporate overhead based on gross segment revenue contribution. (iii) Uses comparable industry segment where applicable. 10 DuPont Agriculture Segment operating earnings is based on segment pre-tax operating income excluding significant items. Reconciliations of non-GAAP measures to GAAP are included at the end of this document. Peers’ Earnings metrics represent the relevant non-GAAP earnings metric as presented in their issued investor materials using the comparable industry segment where applicable. Generally, the peer metrics are reflective of pre-tax earnings associated with operations adjusted for significant items. No adjustments have been made to peer reported metrics to conform them to U.S Dollars or to Segment Operating Earnings as reported by DuPont. 11 Permission to use quotation neither sought nor obtained. 12 “Value destruction from a complete split could be about $20B from lost working capital efficiencies, high taxes from asset sale gains, and additional overhead from splitting businesses, among other factors. We maintain our view that a majority of investors will side with DD as Mr. Gallogly did, having previously had discussions with Trian.” (Wells Fargo, 27 March 2015*); “Moody's views activist investor Trian Partners' proposed strategic and operating initiatives that call for a breakup of E.I. du Pont de Nemours (DuPont, A2 stable) as being credit negative [] A breakup of DuPont would leave two much smaller entities and each one individually would likely not be able to support DuPont's current credit profile. Neither entity would have the scale and business diversity of DuPont today. Both would exhibit greater volatility in earnings and cash flows.” (Moody’s, 26 September 2014*); “DuPont’s businesses are good free cash flow generating entities as the company is configured currently. There are earnings risks near term due to the weakness in the Euro [] However, we think that these risks are probably more than offset by the benefits of the progressive rationalization of DuPont’s business model to increasing return and free cash flow generation.” (J.P. Morgan, 18 September 2014*); “Mr. Peltz’s spin-off plan [] would leave the remaining Company [] with more expensive financing costs, poorer access to the debt and commercial paper markets, and little cushion for the next and inevitable downturn.” (Gimme Credit, 4 February 2015*) *Permission to use quotation neither sought nor obtained. 13 Analysis based on assumptions and details outlined in Trian White Papers dated 9/16/2014 and 2/17/2015; indicative estimates are subject to interest rate assumptions, among other items. 14 From the November 2014 issue of The Harvard Business Review. |