Nomura Holdings, Inc. · TSE:8604
Nomura — DuPont — Nomura Conference 2012
17 slides from Nomura's conference presentation, March 2012
Slide 1: Nick Fanandakis, Executive Vice President & CFO
Nick Fanandakis Executive Vice President & CFO Nomura Conference March 2012
Slide 2: Regulation G and Forward Looking Statements
Regulation 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
Slide 3: DuPont is a Market-Driven Science Company
DuPont is a Market-Driven Science Company DuPont To be the world’s most dynamic science company, creating sustainable solutions essential to Vision a better, safer, healthier life for people everywhere Nomura Conference March 2012 3
Slide 4: 2011 in Review
2011 in Review • Sales $38 billion, up 20% – Sales to developing markets up 27% – Innovation Centers opened in India, Thailand, Taiwan, and South Korea • EPS $3.93*, up 20% Innovation Center, India • Capacity to support growth – Cooper River Kevlar® plant – Tedlar® plant expansion • Productivity del
Slide 5: Sales to Developing Markets
Sales to Developing Markets • 2011 Developing Markets: 34% of company sales – Growing to 40% of total company sales by 2015E • Strong sales growth in China & India (2008-2011) – China 30% sales CAGR, driven by Electronics & Comm and Performance Polymers – India 21% sales CAGR, driven by Titanium Tec
Slide 6: DuPont Long-Term Growth Profile
DuPont Long-Term Growth Profile 7% Sales CAGR 12% EPS CAGR* • Food / energy /protection trends • Innovation • New products and applications • Differential management • Building on our success in developing • Ongoing productivity markets • Margin expansion 2% 10% 8% 24% Earnings per Share* 2011 Sales
Slide 7: We Are Applying Our Science to Find Solutions
We Are Applying Our Science to Find Solutions to some really BIG challenges. Food Energy Protection Feeding the World Reducing Our Dependence Keeping People & on Fossil Fuels the Environment Safe Nomura Conference March 2012 7
Slide 8: Science Powered. Growth Driven.
Science Powered. Growth Driven. • Competitive advantage through science Innovation • Applied to food, energy, protection • Innovation Centers help drive growth globally Differential • Aligned with growth trends 25% • Resource allocation (R&D, CapEx, M&A) Management • Systematic managing processes 75
Slide 9: Innovation Successes
Innovation Successes Food Energy Protection • Expansion of Optimum® • InnovalightTM inks • Kevlar® AP AcreMax® offerings • Optima backsheet • Nomex® paper for • 2012 launch of hybrid electric vehicles Cyazypyr® insecticide • Biofuels • New Tyvek® and Corian® • Ingredients for more offerings nutritio
Slide 10: DuPont Growth Strategy
DuPont Growth Strategy Differential Management Disciplined, systematic approach to prioritize resources across businesses and geographies • R&D • CapEx • M&A CapEx + R&D 25% 44% 56% 75% Growth Segments Performance Segments 2007 2012E Nomura Conference March 2012 10
Slide 11: Aiming Our R&D Engine at These Big Challenges
Aiming Our R&D Engine at These Big Challenges 13% 62% 86% of R&D Spend Targeting Food, 11% Energy, Protection $2 billion 9% R&D spend in 2011 5% Chemicals & Materials Electronics Nomura Conference March 2012 11
Slide 12: Differential Management
Differential Management Acquisitions and Divestitures Supporting Growth Profile 2009-2011 Acquisition Actions 2009-2011 Divest / Exit Actions – Danisco – Catalyst chemicals – 7 US seed companies – Crystar® – MECSTM sulfuric acid Acquisitions – Adhesives business technology – Solae Soy France – Innov
Slide 13: Ongoing Productivity
Ongoing Productivity Productivity • Fixed cost • Working capital • Variable cost Disciplined Business Processes • DIBM • DPS Additional Benefits • Supply chain efficiencies • Capacity release • Improved customer experience Nomura Conference March 2012 13
Slide 14: Productivity Ahead of Plan
Productivity Ahead of Plan 2010-2012 Target: 2010-2012 Target: $1B Fixed Cost Productivity $1B Working Capital Productivity $300 $300 2011 Goal 2011 Goal million million $400 $500 2011 Result: 2011 Result: million million Fixed Cost as % of Sales* NWC Turnover* Achieved 7% Productivity 46.2% 44.6% 7
Slide 15: Delivering Margin Growth
Delivering Margin Growth 2008 2011 New product* sales $8.6B New product* sales ~$11B Innovation ~900 new products >1,400 new products Danisco acquisition Differential Ag & Nutrition = 26% of revenue Ag , N&H = ~33% of revenue (pro-forma) Management PV sales ~$500 million PV sales ~$1.4B >$1.8B fixed
Slide 16: Uses of Cash
Uses of Cash 2007 – 2011 Cash Deployment Capital Spending 33% Five Year Performance: Share • $24B cash generated Repurchase • $26B returned to shareholders or invested 10% for growth $26B Strong Balance Sheet at 12/31/2011 Dividends Acquisitions* • $4B cash, cash equivalents and marketable 29% 28% s
Slide 17: Summary
Summary DuPont Growth Strategy 7% Sales CAGR through: • Innovative solutions for global • Trends in food / energy / protection challenges to feed the world, reduce • New products and applications dependence on fossil fuels, protect • Value-based pricing people and the environment: >30% sales from ne