agriculture & nutrition - iis windows...

Agriculture & NutritionAgriculture & NutritionJ. Erik Fyrwald

Group Vice PresidentFebruary 13, 2007

J. Erik FyrwaldGroup Vice President

February 13, 2007

2

Forward-Looking StatementsDuring the course of this meeting 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 "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 report on Form 10-Q, for a discussion of some of the factors which could cause actual results to differ materially.

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 the company’s earnings news release, dated January 23, 2007, which has been furnished to the SEC on Form 8-K, and which is available on the Investor Center of www.dupont.com.

Forward-Looking StatementsDuring the course of this meeting 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 "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 report on Form 10-Q, for a discussion of some of the factors which could cause actual results to differ materially.

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 the company’s earnings news release, dated January 23, 2007, which has been furnished to the SEC on Form 8-K, and which is available on the Investor Center of www.dupont.com.

3

Shifting the Business into High GearShifting the Business into High Gear

Strong Industry Fundamentals

DuP

ont S

cien

ceD

uPon

t Sci

ence

Game-changing Solutions


Core StrengthsCore Strengths

Advantaged Channels to Market

Advantaged Channels to Market

Cost Productivity Gains

Cost Productivity Gains

Leading Germplasm

Leading Germplasm

Proprietary Traits & Chemistry

Proprietary Traits & Chemistry

Hig

h Va

lue

Opp

ortu

nitie

sH

igh

Valu

e O

ppor

tuni

ties

Growth DriversGrowth Drivers

US Corn1 US Corn1

International Corn2

US & Brazil Soybeans3

Biotech Traits4

Targeted Crop Protection5

R&D Pipeline6

4

Improved Yield Advantage, More TraitsImproved Yield Advantage, More TraitsDemonstrated Superior Genetic Potential• 2006 NCGA Yield Contest

1st Place – Pioneer wins 7 of 9 events2nd Place – Pioneer wins 8 of 9 events3rd Place – Pioneer wins 8 of 9 events

Yield advantage increased 50% from 2005

Strong growth in trait penetration• Ramping up glyphosate tolerance

stacked with Herculex® insect control double and triple stacks in our best hybrids

Demonstrated Superior Genetic Potential• 2006 NCGA Yield Contest

1st Place – Pioneer wins 7 of 9 events2nd Place – Pioneer wins 8 of 9 events3rd Place – Pioneer wins 8 of 9 events

Yield advantage increased 50% from 2005

Strong growth in trait penetration• Ramping up glyphosate tolerance

stacked with Herculex® insect control double and triple stacks in our best hybrids

*Data Extracted Oct. 31, 2006 and is based on 19,994 comparisons of leading Pioneer genetics vs. competitors, including 5000 comparisons vs. DeKalb productsHerculex Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. ®Herculex is a registered trademark of Dow AgroSciences LLC.

US Corn1

+6.0 Bu/Ac*vs. all competitors

Biotech Trait Penetration

Biotech Trait Penetration

YGCBYGCB HX1HX1 RRRR YGRWYGRW HXRWHXRW

20012001 20022002 20032003 20042004 20052005 20062006 2007E2007E 2008E2008E

Stronger Offering in 2007, Full Availability in 2008

5

Improving Advantaged Route to MarketImproving Advantaged Route to MarketStrengthening Sales Channels• Adding points of sale to effective,

efficient sales rep system• Enhanced relationships with

retailers in South• Increasing investment in sales &

marketing capability

GreenLeaf Genetics™ Strong Start• Hundreds of licenses and

testing agreements• Optimum™ GAT™ trait

evaluations underway

Strengthening Sales Channels• Adding points of sale to effective,

efficient sales rep system• Enhanced relationships with

retailers in South• Increasing investment in sales &

marketing capability

GreenLeaf Genetics™ Strong Start• Hundreds of licenses and

testing agreements• Optimum™ GAT™ trait

evaluations underway

US Corn1

Herculex Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. ®Herculex is a registered trademark of Dow AgroSciences LLC.Optimum™ GAT™ and the Optimum Design are trademarks of Pioneer Hi-Bred International, Inc.

Pioneer Sales Representatives and Dealers

Pioneer Sales Representatives and Dealers

Investing in Multiple Channels

6

Leveraging DuPont Biofuels LeadershipLeveraging DuPont Biofuels LeadershipThe Forefront of Biofuels Innovation• Advanced plant genetics

– Higher yields, better protection, improved grain quality

– Altered starch and fiber content– Enhanced feed co-products– Oil seeds with higher oil content

• Cellulosic Biofuels• Next-Generation Biofuels

Strong Biofuels Revenue Today• >$300 million today and growing in

seeds and crop protection in support of biofuels

The Forefront of Biofuels Innovation• Advanced plant genetics

– Higher yields, better protection, improved grain quality

– Altered starch and fiber content– Enhanced feed co-products– Oil seeds with higher oil content

• Cellulosic Biofuels• Next-Generation Biofuels

Strong Biofuels Revenue Today• >$300 million today and growing in

seeds and crop protection in support of biofuels

US Corn1

20062006 2007E2007E 2008E2008E

100100200200300300400400500500600600

00

RevenueFrom Biofuels

$ Millions

RevenueFrom Biofuels

$ Millions

Biofuels Growth Biofuels Growth (gallons)(gallons)

RegionRegion TodayToday 2020E2020E

North AmericaNorth America 6.0B6.0B 30B30B

EU & EurasiaEU & Eurasia 1.1B1.1B 20B20B

South & Central South & Central AmericaAmerica

4.0B4.0B 7B7B

Asia PacificAsia Pacific 1.7B1.7B 30B30B

Biofuels Relationships Enhance Seed and Crop Protection Sales

7

Connecting Ethanol Plants to Hybrids, Growers

Relationships with Each Ethanol PlantRelationships with Each Ethanol Plant

Within Draw Area of an Ethanol Plant• 4,136 Pioneer corn customers• 818,683 Pioneer corn acres• 86% of Pioneer 2006 sales = High Total

Fermentables

Within Draw Area of an Ethanol Plant• 4,136 Pioneer corn customers• 818,683 Pioneer corn acres• 86% of Pioneer 2006 sales = High Total

Fermentables

Helping growers increase production through good product placement and management practices

Helping growers increase production through good product placement and management practices

US Corn1

Ethanol PlantsEthanol Plants

Pioneer Sales RepsPioneer Sales Reps

Herculex Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. ®Herculex is a registered trademark of Dow AgroSciences LLC.

8

Strong Pioneer International MomentumStrong Pioneer International MomentumInternational Corn2

EuropeEurope Latin AmericaLatin America Asia Pacific/AfricaAsia Pacific/Africa

20022002 20062006

$1B Rev.$1B Rev.

Corn Market ShareCorn Market Share

ChangeChange20022002--2007E2007E

+3+3

+5+5

AsiaAsia +3+3

+7+7

EuropeEurope

Latin AmericaLatin America

AfricaAfrica

Strong International Seed Sales Growth in 2007

CAGR15%

CAGRCAGR15%15%

9

Increasing Brazil Corn Seed ShareIncreasing Brazil Corn Seed Share

Pioneer® Brand CornMarket Share GrowthPioneer® Brand CornMarket Share Growth

Gaining Share• In higher technology segment,

primary corn season– Planted Sept / Oct / Nov

• In Safrinha corn season– 2nd crop after soybeans in

Jan / Feb– 20-30% of Brazil corn production

• Crop Protection share growth

Future Growth from Technology• Herculex® I trait for Fall Armyworm• Seed treatment / services

Gaining Share• In higher technology segment,

primary corn season– Planted Sept / Oct / Nov

• In Safrinha corn season– 2nd crop after soybeans in

Jan / Feb– 20-30% of Brazil corn production

• Crop Protection share growth

Future Growth from Technology• Herculex® I trait for Fall Armyworm• Seed treatment / services

Herculex Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. ®Herculex is a registered trademark of Dow AgroSciences LLC.

International Corn2

PioneerPioneer

Leading CompetitorLeading Competitor

19981998 19991999 20002000 20012001 20022002 20032003 20042004 20052005 2006E2006E00

1010

2020

3030

4040

5050

60%60%

Yield, Agronomics and Service Drive Share Gains

10

Increasing Brazil Soybean Seed ShareIncreasing Brazil Soybean Seed ShareGaining Share• Focused on central and central /

west regions • Strong soybean area growth• High level of purchased seed due to

weather and environmental factors• Corn opportunity is complementary• Gaining share off small base

Capturing Biotech Value• Successful launch of glyphosate

tolerant and nematode resistant soybeans

Gaining Share• Focused on central and central /

west regions • Strong soybean area growth• High level of purchased seed due to

weather and environmental factors• Corn opportunity is complementary• Gaining share off small base

Capturing Biotech Value• Successful launch of glyphosate

tolerant and nematode resistant soybeans

1 50 pound bag, thousands


Pioneer® Brand Soybean Unit Growth1

Pioneer® Brand Soybean Unit Growth1

Yield and Agronomic Advantages Drive Growth

Yield and Agronomic Advantages Drive Growth

00

500500

10001000

15001500

20002000

25002500

20032003 20042004 20052005 20062006 2007E2007E20022002

Considerable Room for Profitable Growth

Gly TolGly Tol

Gly TolGly Tol

11

Technology Drives Soybean Share GainsTechnology Drives Soybean Share GainsClear Technology Leader• Leader in marker-based

molecular breeding • Strong IP on markers (e.g. cyst

nematode & brown stem rot)• World record yield @ 139.9 bu/ac;

USDA industry avg. = 42.7

Consistent Market Share Growth• 6+ points in six years in

North America

Successful TREUS™ Launch• TREUS™ Low Linolenic Soybean Oil

adoption by Kellogg, KFC, others

Clear Technology Leader• Leader in marker-based

molecular breeding • Strong IP on markers (e.g. cyst

nematode & brown stem rot)• World record yield @ 139.9 bu/ac;

USDA industry avg. = 42.7

Consistent Market Share Growth• 6+ points in six years in

North America

Successful TREUS™ Launch• TREUS™ Low Linolenic Soybean Oil

adoption by Kellogg, KFC, others


* Period since introduction* Period since introduction

Gra

in Y

ield

Incr

ease

(bus

hels

per

acr

e pe

r yea

r)G

rain

Yie

ld In

crea

se(b

ushe

ls p

er a

cre

per y

ear)

30-YearSoybean

ProductivityAverage

30-YearSoybean

ProductivityAverage

10-YearPioneer

Non-MarkerAverage

10-YearPioneer

Non-MarkerAverage

7-YearPioneerMarker

Average*

7-YearPioneerMarker

Average*

0.20.20.40.40.60.60.80.81.01.01.21.21.41.4

00

Soybean Yield Increase ThroughMarker Technology

Soybean Yield Increase ThroughMarker Technology

Strong Platform for Optimum™ GAT™, High Oleic

1616

1818

2020

2222

2424

26%26%North America Soybean

Market Share GrowthNorth America Soybean

Market Share Growth

20012001 20032003 20042004 20052005 2006200620022002

12

Herculex® XTRA – The Better BtHerculex® XTRA – The Better BtBiotech Traits4

YieldGard®

PlusYieldGard®

PlusUntreated

CheckUntreated

Check

Root Protection Under Corn Rootworm Pressure

Root Protection Under Corn Rootworm Pressure

Pioneer Agronomy Sciences Rootworm Efficacy Trial, Orange City, Iowa – 2006

Pioneer Agronomy Sciences Rootworm Efficacy Trial, Orange City, Iowa – 2006

InsectsInsects ProtectionProtectionEuropean Corn BorerEuropean Corn Borer EE EE

Southwestern Corn BorerSouthwestern Corn Borer EE EE

Fall Armyworm Fall Armyworm EE EE

Black CutwormBlack Cutworm VGVG VGVG

Western Bean CutwormWestern Bean Cutworm VGVG VGVG

Corn Ear WormCorn Ear Worm GG GG

Western Corn RootwormWestern Corn Rootworm EE EE

Northern Corn RootwormNorthern Corn Rootworm VGVG VGVG

Mexican Corn RootwormMexican Corn Rootworm EE EE

E = ExcellentE = Excellent VG = Very Good VG = Very Good G = GoodG = Good

Herculex Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. ®Herculex and the HX logo are registered trademarks of Dow AgroSciences LLC. ®YieldGard is a registered trademark used under license from Monsanto Company.

Farmers See the Difference

13

Herculex® XTRA – The Better BtHerculex® XTRA – The Better Bt

Herculex Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. ®Herculex and the HX logo are registered trademarks of Dow AgroSciences LLC.

Biotech Traits4

Superior PerformanceControls Insects That

Competitive Traits Don’t

Superior PerformanceControls Insects That

Competitive Traits Don’t

YGCB®

Western Bean Cutworm Protection Western Bean Cutworm Protection

• Heavy infestations of Western Bean Cutworm can cut yield up to 30-40%

• Western Bean Cutworm pressure increases risk of ear molds and associated mycotoxins

• Ethanol process concentrates mycotoxins by 3X in feed co-products

• Heavy infestations of Western Bean Cutworm can cut yield up to 30-40%

• Western Bean Cutworm pressure increases risk of ear molds and associated mycotoxins

• Ethanol process concentrates mycotoxins by 3X in feed co-products

The Better Bt for Growers, Ethanol Producers

Western Bean CutwormWestern Bean Cutworm

Black CutwormBlack Cutworm

14

Meeting Regulatory Milestones• Regulatory submissions for soybeans

US 2006, other countries 2007

• Corn US submission in 2007Speeding Trait Development Timeline• Typical timeline from development to

commercialization being cut in half

Meeting Regulatory Milestones• Regulatory submissions for soybeans

US 2006, other countries 2007

• Corn US submission in 2007Speeding Trait Development Timeline• Typical timeline from development to

commercialization being cut in half

Optimum™ GAT™ Trait –Optimum™ GAT™ Trait –

2007 Trial Locations2007 Trial Locations

Biotech Traits4

Aggressive Trait Ramp UpAggressive Trait Ramp Up

HX1HX1 HXRWHXRW GATGATRRRR

yr 6yr 6yr 1yr 1 yr 2yr 2 yr 3yr 3 yr 4yr 4 yr 5yr 5 yr 7yr 7

ActualActual

EstimateEstimate

North America Corn Trait

North America Corn Trait

Optimum™, GAT™ are trademarks of Pioneer Hi-Bred International, Inc.

Maximizes Yield and Productivity, New Weed Control Options

The Next GenerationWeed Control

15

Growing Value from New OilsGrowing Value from New OilsGrowing Demand• Helps food industry eliminate trans

fatty acids

• Food industry uses 6-8 billion pounds of hydrogenated soybean oil per year

High Oleic Soybeans More Stable• Offers high heat stability for frying

• Can be used as a bio-based feedstock in industrial applications

• Strong IP position

• On track for 2009 commercialization

Growing Demand• Helps food industry eliminate trans

fatty acids

• Food industry uses 6-8 billion pounds of hydrogenated soybean oil per year

High Oleic Soybeans More Stable• Offers high heat stability for frying

• Can be used as a bio-based feedstock in industrial applications

• Strong IP position

• On track for 2009 commercialization

Biotech Traits4

High Oleic Soybean Oil: The Better Solution

0%0% 100%100%

CommodityCommodity

Low LinLow Lin

High OleicHigh Oleic

High Oleic/High StearicHigh Oleic/

High Stearic

LinolenicLinolenic LinoleicLinoleic OleicOleic SatsSats

®, SM, TM trademarks and service marks of Pioneer Hi-Bred International, Inc.

16

Focused Crop Protection Growth StrategyFocused Crop Protection Growth StrategyTargeted Crop Protection5

Grow SUs • Higher value proprietary blends, differentiated

liquid offerings• Maximize seed offering• Leverage low cost position

Grow Specialties• Insecticides – chiral indoxacarb• Fungicides – Kocide 3000, Proquinazid mixtures

& Picoxystrobin• High growth: Brazil, Eastern Europe

Robust Pipeline• Rynaxypyr™ and GN family• Emerging family of insecticides • New fungicide family• New herbicide

Grow SUs • Higher value proprietary blends, differentiated

liquid offerings• Maximize seed offering• Leverage low cost position

Grow Specialties• Insecticides – chiral indoxacarb• Fungicides – Kocide 3000, Proquinazid mixtures

& Picoxystrobin• High growth: Brazil, Eastern Europe

Robust Pipeline• Rynaxypyr™ and GN family• Emerging family of insecticides • New fungicide family• New herbicide

Efficiently Renewing Market Position and Pipeline

Latin AmericaLatin America North AmericaNorth AmericaEuropeEurope Asia PacificAsia Pacific

Global RevenueGlobal Revenue

20022002 2007E2007E

CAGR5%

CAGRCAGR5%5%

17

Phase 4Pre-Launch

DiscoveryHit

Generation

Phase 3Advanced

Development

Phase 2Early

DevelopmentPhase 1

Optimization

Preemergent Grass Control in CornBroadleaf Weed Control in Veg Mgmt, Pasture, Turf, Corn

Indoxacarb for Animal Health

Glyphosate + SU Resistance

New Class of Broad-Spectrum Insecticides

Broad-Spectrum Fungicide with New Mode of ActionHighly Active Oomycete Control with New Mode of Action

Broad-Spectrum Fungicide for SpecialtiesProquinazid Powdery Mildew Control

Kocide® Low Copper Fungicide

Rynaxypyr™ for Turf

Rynaxypyr™Chiral Indoxacarb

Advion® Insecticide for Roach, Mole Cricket and Ant ControlProvaunt® Liquid Insecticide for Turf

Seed TreatmentAnimal Health Discovery

Aperion ® for Termite Control

10 New SU Blends

Low-Toxicity, Broad-Spectrum Insecticide

New Class of Nematicides

Liquid SU

Professional Products

Traits Thru Chemistry

Herbicides Insecticides / Nematicides Fungicides Adjacent Markets

Target Markets

R&D Pipeline6

2007 Crop Protection Pipeline2007 Crop Protection Pipeline

Differentiated Insecticides, Fungicides and Herbicides

18

Building a Strong Biotech Patent EstateBuilding a Strong Biotech Patent Estate

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

20052005 20042004 20032003

PatentsPatents RankRank PatentsPatents RankRank PatentsPatents RankRank

University of University of CaliforniaCalifornia 9999 #1#1 118118 #1#1 132132 #1#1

U.S. GovernmentU.S. Government 8484 #2#2 8787 #3#3 9494 #2#2

DuPont 75 #3 89 #2 73 #3

AppleraApplera 6363 #4#4 5454 #6#6 7878 #4#4

Human Genome Human Genome SciencesSciences 5858 #5#5 8282 #4#4 4646 #7#7

GenentechGenentech 5454 #6#6 5454 #7#7 5555 #5#5

ISIS PharmaISIS Pharma 4242 #7#7 6565 #5#5 5454 #6#6

R&D Pipeline6

Putting Science to Work

19

2007 Crop Genetics Pipeline2007 Crop Genetics Pipeline

2/07

*Proprietary Pioneer Glyphosate + ALS tolerance trait

R&D Pipeline6

Phase 3Advanced

Development

Phase 2Early

Development

Phase 1Proof of Concept

Phase 4Pre-Launch

DiscoveryGene/Trait

IdentificationAnthracnose Stalk Rot Resistance

Fungal Disease Resistance

Corn Borer Resistance III

Triple-Mode Herbicide Tolerance

Drought Tolerance IDrought Tolerance II

Nitrogen Use EfficiencyIncreased Yield I

Increased Ethanol Production II

Improved Feed II

Optimum™ GAT™ *

Corn Rootworm Resistance III

Increased Yield II

Increased Ethanol Production III

Corn Rootworm Resistance II

Corn Borer Resistance II

Corn

Asian Soybean Rust ResistanceOptimum™ GAT™ *

Triple-Mode Herbicide Tolerance

Cyst Nematode Resistance

Lepidopteran Resistance

Aphid Resistance

Soyb

eans

Increased Yield IIIncreased Yield III

Optimum™ GAT™ * Cotton

Insect Resistant Rice

Glyphosate Tolerant Cotton

Insect Resistant Cotton

Glyphosate Tolerant Canola

Improved Feed IImproved Feed II

High Oleic + High Stearic Acid OilHigh Oleic Acid Oil

Omega-3 OilImproved Flavor

Improved Functionality

Increased Yield I

Insect Resistance

Improved Feed IIISeed Production Technology

Othe

r Cro

ps

Glyphosate Tolerant Alfalfa

20

Advancing and Expanding a Rich PipelineAdvancing and Expanding a Rich PipelineRapid Advancement • Four traits advanced to pre-launch• 44% of current pipeline advanced

phases in the last 12 months• 90% of current pipeline advanced

phases in the last 24 monthsAggressive Portfolio Management

Rapid Advancement • Four traits advanced to pre-launch• 44% of current pipeline advanced

phases in the last 12 months• 90% of current pipeline advanced

phases in the last 24 monthsAggressive Portfolio Management

R&D Pipeline6

New to the Pipeline• Triple-Mode Herbicide

Tolerance – Corn / Soy• Corn Drought Tolerance II• Soybean Lepidopteron Resistance• Soybean Aphid Resistance• Soybean Increased Yield III• Glyphosate Tolerant Alfalfa

New to the Pipeline• Triple-Mode Herbicide

Tolerance – Corn / Soy• Corn Drought Tolerance II• Soybean Lepidopteron Resistance• Soybean Aphid Resistance• Soybean Increased Yield III• Glyphosate Tolerant Alfalfa

Increasing Investment to Accelerate Growth

21

New Tools Accelerate CommercializationNew Tools Accelerate Commercialization

Rapid Adoption of Doubled Haploids• Increased production >150% over

2006

Synergistic Technologies• Leveraging molecular breeding

leadership from soybeans into other crops

• Doubled haploids, molecular breeding integrated into breeding programs

• Doubled haploids + molecular breeding accelerate genetic gain

Rapid Adoption of Doubled Haploids• Increased production >150% over

2006

Synergistic Technologies• Leveraging molecular breeding

leadership from soybeans into other crops

• Doubled haploids, molecular breeding integrated into breeding programs

• Doubled haploids + molecular breeding accelerate genetic gain

R&D Pipeline6

Soybean Unit Sales Developed by Molecular

Breeding

Soybean Unit Sales Developed by Molecular

Breeding

20022002 20032003 20042004 20052005 200620062001200100

2020

4040

6060

8080

100%100%

2007 Marker TraitTargets

2007 Marker TraitTargets

00

55

1010

1515

2020

2525

3030

SunflowerSunflower CanolaCanola RiceRice SorghumSorghum SoybeanSoybeanWheatWheat CornCorn

Taking Years Out of Product Introduction Cycle

22

Pioneer Corn and Soybean Trait LineupPioneer Corn and Soybean Trait Lineup

Trait IntegrationTrait Integration 20072007 20082008 20092009 20102010

CornCorn 44--Way StackWay Stack•• HX1HX1•• HXRWHXRW•• GTGT•• LibertyLinkLibertyLink®®

55--Way StackWay Stack•• HX1HX1•• HXRWHXRW•• GTGT•• Stalk Rot Stalk Rot

ResistanceResistance•• LibertyLinkLibertyLink®®

55--Way StackWay Stack•• HX1HX1•• HXRWHXRW•• GTGT•• Stalk Rot Stalk Rot

ResistanceResistance•• LibertyLinkLibertyLink®®

66--Way StackWay Stack•• HX1HX1•• HXRWHXRW•• OptimumOptimum™™ GATGAT™™

•• LibertyLinkLibertyLink•• Stalk Rot Stalk Rot

Resistance Resistance

SoybeanSoybean Single TraitSingle Trait•• GT GT

Single TraitSingle Trait•• GTGT

33--Way StackWay Stack•• OptimumOptimum™™ GATGAT™™

•• High OleicHigh Oleic

33--Way StackWay Stack•• OptimumOptimum™™ GATGAT™™

•• High OleicHigh Oleic

Biotech Traits4

Accelerated Trait Integration Expands Performance AdvantageHerculex Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred®Herculex and the HX logo are registered trademarks of Dow AgroSciences LLCOptimum™, GAT™ are trademarks of Pioneer Hi-Bred International, Inc.®LibertyLink is a registered trademark of Bayer AG.

23




US Corn1 US Corn1

International Corn2


Biotech Traits4


R&D Pipeline6

Near Term Pipeline PayoutNear Term Pipeline Payout

Shifting the Business into High GearShifting the Business into High Gear

Herculex Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred®Herculex and the HX logo are registered trademarks of Dow AgroSciences LLCOptimum™, GAT™ are trademarks of Pioneer Hi-Bred International, Inc.

Summary

Opportunity Status

2/3 of 2007 sales

4x supply in ’07; 10x supply in ‘08

Reg. Sub. – Intl. Soy, US Corn

Stalk Rot Resistance Low Comm. Hybrid Advancement

Seed Production Technology Low Integrating for

2008 Launch

High Oleic Soy Medium Intl. Reg. Submission

Rynaxypyr™ High Pre-launch

Soy Protein Taste Medium Development

New Global Genetics High

Herculex® RW + Stacks High

Optimum™ GAT™Soy and Corn High

Advancing New Product Pipeline in 2007

Annual Opportunity High = $200MM+ Medium = $100-$199MM Low = <$100MM

24




US Corn1 US Corn1

International Corn2


Biotech Traits4


R&D Pipeline6

Positioning for Long-Term GrowthPositioning for Long-Term Growth

Herculex Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred®Herculex and the HX logo are registered trademarks of Dow AgroSciences LLCOptimum™, GAT™ are trademarks of Pioneer Hi-Bred International, Inc.

Summary

2007: Investing for Growth, PTOI up moderately

• Trait Penetration• Proprietary Traits• Licensing Income• Biofuels Platform • Global Grain Demand

Growth AcceleratorsGrowth Accelerators

Organic GrowthOrganic Growth

Seed Corn Operating ProfitSeed Corn Operating Profit2006 2011

North AmericaNorth America

InternationalInternational

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