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du pont 2003 Data Book

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This document is a DuPont data book that provides financial and operational data about DuPont for 2003. Some key highlights include: - Net sales for 2003 were $26.996 billion, up from $24.006 billion in 2002. Income from continuing operations was $1.002 billion in 2003 and $1.841 billion in 2002. - Actions taken in 2003 included the sale of INVISTA to Koch Industries and $900 million in cost improvements planned for 2004-2005 through productivity and organizational actions. - Total assets as of 2003 year-end were $37.039 billion, with working capital of $5.419 billion and total debt of $10.479 billion. - Per share

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DUPONT 2003 DATA BOOK
Contents DUPONT INVESTOR RELATIONS 1 | DuPont Leadership Ann K. M. Gualtieri Vice President DuPont Investor Relations and Corporate Plans 2 | 2003 @ a Glance (302) 774-0583 4 | Corporate Financial Data Highlights David L. Peet Segment Information Director Consolidated Income Statement (302) 774-1125 Consolidated Balance Sheet Consolidated Statement of Cash Flows Selected Additional Data Joyce A. McGhee 15 | The DuPont Commitment: Manager (302) 774-6088 Safety, Health and the Environment 16 | The New DuPont Carol A. Wolff 18 | Business Segments Investor Relations Agriculture & Nutrition Coordinator Coatings & Color Technologies (302) 774-9870 Electronic & Communication Technologies Performance Materials Safety & Protection Pharmaceuticals Textiles & Interiors Other 40 | Major Sites and Principal Products DuPont DATA BOOK has been prepared to assist financial analysts, portfolio managers and others in understanding and evaluating the company. This book presents graphics, tabular and other statistical data about the consolidated company and its business segments. The information presented in this book is either included in, or can be calculated from information included in, previously published company reports on Forms 10K and 10Q. Dollars are in millions except per share or where otherwise indicated. Most notes to financial statements are not included. This information is only a summary and should be read in conjunction with the company’s audited consolidated financial statements and “Management’s Discussion and Analysis” located in the 2003 Annual Report on Form 10K filed with the Securities and Exchange Commission. DuPont DATA BOOK is available on the Web at www.dupont.com. The DuPont Oval Logo, DuPontTM, The miracles of science® and all products denoted with TM or ® are trademarks or registered trademarks Main Office Number (302) 774-4994 of E.I. du Pont de Nemours and Company or its affiliates. Fax (302) 773-2631 May 2004 Internet www.dupont.com
BOARD OF SENIOR DIRECTORS LEADERS Charles O. Holliday, Jr. * Chairman of the Board and Chief Executive Officer Alain J. P. Belda * †† Chairman and Chief Executive Officer, ▲ James C. Borel Thomas M. Edward J. Donnelly J. Erik Fyrwald Alcoa Inc. ▲ Connelly, Jr. Senior Vice President Group Vice President Group Vice President DuPont Human DuPont Coatings & DuPont Agriculture Senior Vice President Richard H. Brown * ††† Resources Color Technologies & Nutrition and Chief Science & Former Chairman of the Board and Technology Officer Chief Executive Officer, Electronic Data Systems Curtis J. Crawford † ††† President and Chief Executive Officer, XCEO, Inc. John T. Dillon * † Retired Chairman of the Board and Chief Executive Officer, ▲ Richard R. Diane H. Gulyas John C. Hodgson Charles O. International Paper ▲ ▲ Goodmanson Holliday, Jr. Chief Marketing & Senior Vice President Louisa C. Duemling ** Sales Officer Executive Vice President Chairman & Chief & Chief Operating Officer Executive Officer Deborah C. Hopkins † Chief Operations and Technology Officer, Citigroup, Inc. Lois D. Juliber * †† Chief Operating Officer, Colgate-Palmolive Company Masahisa Naitoh ** Chairman and Chief Executive Officer, The Institute of Energy Economics, Japan ▲ W. Donald Johnson Ellen J. Kullman Stacey J. Mobley Jeffrey L. Keefer Group Vice President Group Vice President Senior Vice President, Group Vice President William K. Reilly ** ††† DuPont Global Operations DuPont Safety Chief Administrative Officer DuPont Performance President and Chief Executive Officer, & Protection & General Counsel Materials Aqua International Partners, LP; Former Administrator, U.S. Environmental Protection Agency H. Rodney Sharp, III † †† Charles M. Vest † President, Massachusetts Institute of Technology ▲ Craig G. Naylor Gary M. Pfeiffer Board Committees: Group Vice President Senior Vice President † Audit Asia Pacific Region and & Chief Financial Officer †† Compensation DuPont Electronic & ††† Corporate Governance Communication ** Environmental Policy Technologies * Strategic Direction ▲ Member, Office of the Chief Executive
DUPONT 2003 @ A GLANCE During 2003, DuPont made two significant announcements DuPont acquired the alkylation division of STRATCO, Inc., a regarding actions the company will take to remain competitive in an technology licensing company servicing oil refineries globally. environment defined by sustained high-energy costs, increased global The division was integrated into DuPont Refinery Solutions. competitive intensity, and a customer base that is shifting toward FEBRUARY emerging economies. DuPont announced that it developed, with joint development partner In November, DuPont announced it had signed a definitive Genencor International, an innovative bio-based method that uses the agreement with Koch Industries to sell INVISTA, its fibers and sugars from corn — instead of conventional petroleum-based related-intermediates businesses. This transaction closed in processes — to produce DuPontTM Sorona®, the latest polymer April 2004. platform for use in clothing, carpets and automobile interiors. In December, DuPont announced that it will take aggressive DuPont and Statoil signed an agreement to form a joint venture, productivity and organizational actions that will achieve a $900 Norferm A.S., to further develop the world’s only methane-based million cost improvement in 2005, with $450 million to be achieved fermentation production facility. The joint venture focuses on in 2004. The actions will strengthen the company’s ability to achieve developing new, high-value products for the animal feed markets. its sustainable growth goals of 6 percent top line growth, 10 percent sustainable earnings growth, and one percent improvement per year to MARCH return on invested capital. The actions include: DuPont unveiled a new corporate automotive safety initiative to leverage more than 60 existing DuPont product lines in auto safety • Reduce fixed costs to offset residual costs from the anticipated separation of INVISTA. systems and to help vehicle manufacturers and their suppliers focus on advanced safety systems. • Leverage and center staff functions, support services, and manufacturing operations broadly, including corporate costs. U.S. Environmental Protection Agency awarded DuPont its Clean These actions will facilitate standardization of systems and Air Excellence Award for DuPontTM SuperSolidsTM clearcoat. The processes across the company and enable commercial business ultra-low emissions coating lowers volatile organic compound leaders to more fully focus on customers, markets and growth. (VOC) emissions by more than 25 percent, while also improving • Improve variable margin by consolidating product lines and scratch and mar resistance 60 percent for automotive finishes. devoting more Six Sigma projects to margin improvement. DuPont acquired parts of the high-performance crystalline To strengthen its ability to achieve its revenue growth goals, DuPont plastics business of Eastman Chemical Company. The acquisition will rebalance resources toward emerging markets, where much of complements Engineering Polymer’s current offering in the its growth will occur in coming years. Initial focus will be on automotive and electrical/electronics industries. China, and additional areas of interest include Eastern and Central DuPont formed Photonics Technologies, L.L.C., to develop, Europe and Brazil. Additionally, the company will comprehensively manufacture and market planar integrated photonic devices for use and systematically improve its marketing and sales functions. in optical networks for the telecommunications industry. As it takes on these actions, the company remains committed to the DuPont introduced DuPontTM SuprelTM, a unique fabric based on a structure and strategy of the five Growth Platforms. Consistent across revolutionary composite technology that provides an advanced level all of the platforms, business teams will continue to focus on growth of comfort and protection for healthcare professionals. via the three critical pathways of Integrated Science, Knowledge Intensity and Productivity. Additional highlights of the year include: APRIL DuPont signed a Letter of Intent with Zhonghao New Chemical JANUARY Material Company and Changshu 3F Fluorochemical to form a DuPont and Bunge Limited announced that they intended to form an joint venture to manufacture hydrofluorocarbon (HFC) blend alliance to significantly grow their agriculture and nutrition businesses. refrigerants for the fast-growing air conditioning and refrigeration The alliance included a joint venture for the global production and industry in China. distribution of specialty food ingredients. The joint venture, which was formed in April, had pro forma sales of $800 million. Additionally, The U.S. Department of Agriculture adopted DuPont Qualicon the alliance included a biotechnology agreement to jointly develop and Bax® system to detect Salmonella in the nation’s ready-to-eat meat, commercialize soybeans with improved quality traits and an alliance to poultry and pasteurized eggs. In September, the USDA adopted develop a broader offering of services and products to farmers. the Bax® system for detecting Listeria monocytogenes in food. DuPont joined the Chicago Climate Exchange (CCX) as a founding To help frontline health care responders slow the spread of Severe member. CCX is a voluntary marketplace for reducing and trading Acute Respiratory Syndrome (SARS), DuPont announced it had greenhouse-gas emissions which enables its members to receive stepped up supply efforts for DuPontTM Tyvek® protective disposable credit for reductions and to buy and sell credits in order to find the garments in mainland China and Hong Kong. Throughout 2003, most cost-effective way of achieving reductions. DuPont filled orders for more than 8 million garments in Asia.
President George W. Bush presents the National Medal of Technology to DuPont. CEO Chad Holliday accepts. MAY DuPontTM StormRoomTM with DuPontTM Kevlar®, a new residential storm shelter engineered to help offer a family protection from the dangers of tornadoes, complied with the Federal Emergency Management DUPONT WON OTHER NOTABLE AWARDS IN 2003: Agency’s guidelines on tornado shelters. Awarded the U.S. Environmental Protection JUNE Agency’s Presidential Green Chemistry Award for DuPont announced that DCI Acquisition Inc., a subsidiary of DuPont, bio-based process as the basis for production of successfully completed the tender offer for all of the class A common 1,3 propanediol (PDO) shares of DuPont Canada, not owned by DuPont or its affiliates. Ranked number 16 in the annual “World’s Most JULY Respected Companies” survey conducted by DuPont announced that Finish Line Technologies is the first PricewaterhouseCoopers for the Financial Times licensee in a focused effort to increase consumer preference for science-based products sold under the DuPont brand. The first Named the market sector leader in the chemicals products are aerosol lubricants based on DuPontTM Teflon® industry of the Dow Jones Sustainability World Index fluoropolymer technology. (DJSI). DuPont has been a component of the DJSI since its inception SEPTEMBER DuPont announced it signed a land reservation agreement in the Jiangsu DuPont Chairman and CEO Chad Holliday was honored province of the People’s Republic of China. The agreement supports by the U.S. Council for International Business for his DuPont’s intent to establish a fluorochemical and fluoropolymer significant policy leadership in improving the global manufacturing center in China over the next several years. competitive framework for U.S. business OCTOBER Named one of the safest U.S. companies by DuPont and the U.S. Department of Energy’s National Renewable Occupational Hazards magazine Energy Laboratory announced a joint research agreement leading toward the development of the world’s first integrated “bio-refinery” For the second time in three years, DuPont Engineering that uses corn or other renewable resources — rather than Polymers was recognized as Polymer Producer of the traditional petrochemicals — to produce a host of valuable fuels Year at the annual UK Plastics Industry Awards and value-added chemicals. DuPont acquired Antec International, a leading biosecurity company Ranked as one of the “100 Best Companies for Working providing human and animal health emergency disease control. Mothers” in the U.S. by Working Mother magazine President George W. Bush announced that DuPont was awarded the Named one of the most desired employers to work for National Medal of Technology — the highest honor for technological by Forbes Brazil magazine and Transearch International innovation in the U.S. — for its global leadership and innovation in developing alternative technology that reduced the environmental For the second consecutive year, DuPont Global impact caused by ozone-depleting chlorofluorocarbons. Sourcing & Logistics was named to the “Top Ten Best Supply Chains of 2003” by Logistics Today magazine NOVEMBER DuPont announced it will construct a $15 million corporate research For the second consecutive year, named one of the and development facility near Shanghai to support growth in the Asia best places to work in Mexico, by the business magazine Pacific region. The center will be the third major DuPont R&D Expansion and the Great Place To Work® Institute facility outside the U.S. and is expected to open in early 2005. DuPont acquired Griffin Corporation's interest in Griffin LLC, thereby Named one of the “Top 30 Companies for becoming the sole owner. The purchase will enable DuPont to provide Executive Women” by The National Association for customers with a broader portfolio of crop protection products. Female Executives DECEMBER Honored by the American Chemistry Council for energy Growers planting Pioneer® brand corn hybrids won 22 of 27 categories efficiency improvements made in 2002 in the 2003 National Corn Growers Association corn yield contest. DuPont-led scientists discovered an innovative way to advance electronics applications through the use of DNA that sorts carbon nanotubes, providing a significant step in advancing nano-electronics applications.
CORPORATE FINANCIAL DATA Corporate Highlights (dollars in millions, except per share) 2003 2002 Operating Results Net sales $26,996 $24,006 Income from continuing operations 1 1,002 1,841 Income from discontinued operations – – Net income (loss) 973 2 (1,103) 3 Income from continuing operations before special items 1 1,669 2,009 Depreciation 1,355 1,297 Cash provided by continuing operations 2,589 2,439 Capital expenditures 1,784 1,416 Research and development expense 6 1,349 1,264 Financial Position, Total assets $37,039 $34,621 Year End Working capital 5,419 6,363 Total debt 10,479 7 6,832 Stockholders’ equity 9,781 9,063 Data Per Common Share Income from continuing operations1, 8 $0.99 $1.84 Income from discontinued operations8 – – Net income (loss) 8 $0.96 2 $(1.11) 3 Income from continuing operations before special items 1, 8 $1.66 $2.00 Cash provided by continuing operations per share 8 $2.59 $2.44 Dividends $1.40 $1.40 Market price – year-end close $45.89 $42.40 high-low range $46.00 – $34.71 $49.80 – $35.02 Book value at year-end $9.57 $8.88 Average number of shares (millions) – diluted 1,000 999 Shares outstanding – year-end (millions) 997 994 Ratios Total stockholder return 11.5% 3.0% Dividend yield 9 3.1% 3.3% Share price increase (decrease) 8.2% (0.3)% P/E on income from continuing operations before special items1, 9 28 21 Dividend payout, as percentage of: Earnings per share from continuing operations before special items1 84% 70% Cash provided by continuing operations per share 54.1% 57.3% Return on average stockholders’ equity before special items1 17.9% 17.4% Return on average investors’ capital before special items1,10 9.0% 10.6% Cash provided by continuing operations as percentage of total debt7 24.7% 65.1% 11 Debt to total capital7 50.3% 37.3% Interest coverage ratio 12 7.9 9.7 Current ratio7 1.2 1.9 Employees Number of employees – year-end (thousands) 81 79 1 Before cumulative effect of changes in accounting principles. 2 Includes a cumulative effect of a change in accounting principle charge of $29 and $0.03 per share (diluted). 3 Includes a cumulative effect of a change in accounting principle charge of $2,944 and $2.95 per share (diluted). 4 Includes a cumulative effect of a change in accounting principle benefit of $11 and $.01 per share (diluted). 5 Includes strategic acquisition of $4,905 in 1999. 6 Excludes purchased in-process research and development. 7 Includes related assets and/or liabilities classified as held for sale within the Consolidated Balance Sheet. 8 Diluted, based on average number of common shares. 9 Based on year-end share price. 10 Proforma return on average investors’ capital reflecting the impact of the Conoco split-off on stockholders’ equity and debt equals 16% for 1999. 11 Ratio excludes increase in tax payments related to sale of DuPont Pharmaceuticals. 12 Income from continuing operations before special items and income taxes, plus the sum of interest expense and amortization of capitalized interest less interest income, divided by the sum of interest expense and capitalized interest less interest income. Use of Non-GAAP Measures Management believes that an analysis of earnings before special items is meaningful to investors because it provides insight with respect to ongoing operating results of the company. Special items represent significant charges or credits that are important to an understanding of the company’s ongoing operations. Such measurements are not recognized in accordance with generally accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance. For a list of special items, see page 20 of the 2003 Annual Report on Form 10K. 4 D P U ONT
2001 2000 1999 Dividends Per Share Earnings Per Share – Diluted $24,726 $28,268 $26,918 4,328 2,314 219 Continuing Operations Before Special Items – – 7,471 (dollars) (dollars) 4,339 4 2,314 7,690 $1.50 $3.00 1,251 2,878 2,843 $2.50 1,320 1,415 1,444 2,454 4,830 4,731 $1.25 $2.00 1,634 2,022 6,988 5 $1.50 1,588 1,776 1,617 $1.00 $1.00 $40,319 $39,426 $40,777 6,734 2,401 1,425 $0.50 6,814 9,905 11,566 14,452 13,299 12,875 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 $ 4.15 $2.19 $0.19 – – $6.80 $ 4.16 4 $2.19 $6.99 $1.19 $2.73 $2.58 $2.36 $4.60 $4.31 $1.40 $1.40 $1.40 $42.51 $48.31 $65.88 Five-Year Performance 1999– 2003 $49.88 – $32.64 $74.00 – $38.19 $75.19 – $50.06 $14.20 $12.57 $12.09 Stockholder Return DuPont S&P 500 1,041 1,051 1,098 Dividend Yield 2.9% 1.4% 1,002 1,039 1,045 Share Price Annual Appreciation (2.9)% (2.0)% (9.1)% (24.5)% 26.8% 3.3% 2.9% 2.1% Total Annual Return* 0.1% (0.6)% (12.0)% (26.7)% 24.1% 36 18 26 Dividend Growth 0.5% 1.4% 117% 51% 53% 59.4% 30.5% 32.5% Ten-Year Performance 1994–2003 9.4% 21.8% 21.5% 6.8% 13.8% 13.4% Stockholder Return DuPont S&P 500 36.0% 48.8% 40.9% Dividend Yield 2.8% 1.7% 28.8% 42% 46.3% 4.7 6.7 9.7 Share Price Annual Appreciation 6.6% 9.1% 1.8 1.3 1.1 Total Annual Return* 9.7% 11.1% 79 93 94 Dividend Growth 4.8% 3.2% * Assumes a steady compounded rate of return over the period shown and includes reinvestment of dividends. D P 5 U ONT
CORPORATE FINANCIAL DATA Segment Information (dollars in millions) 2003 2002 2001 Segment Sales 1 Agriculture & Nutrition $ 5,470 $ 4,516 $ 4,295 Coatings & Color Technologies 5,503 5,026 4,917 Electronic & Communication Technologies 2,892 2,540 2,688 Performance Materials 5,376 4,926 4,727 Pharmaceuticals – – 902 Safety & Protection 4,071 3,477 3,569 Textiles & Interiors 6,937 6,221 6,443 Other 19 22 148 Total segment sales 30,268 26,728 27,689 Elimination of transfers (940) (375) (480) Elimination of equity affiliate sales (2,332) (2,351) (2,493) Miscellaneous – 4 10 Net sales per Consolidated Financial Statements $26,996 $24,006 $24,726 Segment After-Tax Operating Income – Before Special Items Agriculture & Nutrition $ 498 $ 427 $ 246 Coatings & Color Technologies 474 525 498 Electronic & Communication Technologies 146 216 283 Performance Materials 262 426 279 Pharmaceuticals 340 290 58 Safety & Protection 536 487 485 Textiles & Interiors 13 213 68 Other (101) (85) (58) Total segment after-tax operating income – before special items 2,168 2,499 1,859 (32) (36) (15) Exchange gains and losses Corporate expenses and interest (453) (413) (577) Corporate minority interest 2 (14) (41) (16) Income before special items 3 1,669 2,009 1,251 Net special items 4 (667) (168) 3,077 Reported income 3 $ 1,002 $ 1,841 $ 4,328 1 Sales include transfers and pro rata share of equity affiliate sales. 2 Represents a rate of return to minority interest investors who made capital contributions during 2001 to consolidated subsidiaries. 3 Before cumulative effect of changes in accounting principles. 4 For complete details of special items, see the DuPont 2003 Form 10-K. DuPont’s Share of DuPont’s Share of Equity Affiliate Sales Equity Affiliate Earnings 2003 2002 2001 2003 2002 2001 2000 Equity Affiliate Analysis Agriculture & Nutrition $152 $ 176 $ 188 $ (7) $ (6) $ (13) Coatings & Color Technologies 70 109 127 3 (3) (6) Electronic & Communication Technologies 233 212 251 8 10 11 Performance Materials 1,144 1,073 1,024 9 33 (16) Safety & Protection 58 55 89 14 10 10 Textiles & Interiors 675 726 814 (277) (4) (33) Other – – – – – – Total segments $2,332 $2,351 $2,493 $(250) $ 40 $ (47) 6 D P U ONT
2003 2002 1st 2nd 3rd 4th Full Yr. 1st 2nd 3rd 4th Full Yr. Segment Sales 1 Agriculture & Nutrition $ 1,790 $ 1,886 $ 803 $ 991 $ 5,470 $ 1,606 $ 1,558 $ 609 $ 743 $ 4,516 Coatings & Color Technologies 1,269 1,419 1,378 1,437 5,503 1,137 1,312 1,276 1,301 5,026 Electronic & Communication Technologies 677 737 728 750 2,892 578 682 645 635 2,540 Performance Materials 1,336 1,354 1,299 1,387 5,376 1,163 1,292 1,252 1,219 4,926 Safety & Protection 985 1,061 998 1,027 4,071 827 892 852 906 3,477 Textiles & Interiors 1,717 1,779 1,744 1,697 6,937 1,439 1,681 1,567 1,534 6,221 Other 3 4 5 7 19 8 2 6 6 22 Total segment sales $ 7,777 $ 8,240 $ 6,955 $ 7,296 $30,268 $ 6,758 $ 7,419 $ 6,207 $ 6,344 $ 26,728 Segment After-Tax Operating Income – Before Special Items Agriculture & Nutrition $ 378 $ 341 $ (142) $ (79) $ 498 $ 323 $ 286 $ (98) $ (84) $ 427 Coatings & Color Technologies 74 132 120 148 474 85 136 168 136 525 Electronic & Communication Technologies 21 39 32 54 146 45 57 66 48 216 Performance Materials 75 73 55 59 262 84 124 128 90 426 Pharmaceuticals 95 54 85 106 340 51 60 72 107 290 Safety & Protection 128 140 126 142 536 103 119 124 141 487 Textiles & Interiors (5) 7 (8) 19 13 30 93 59 31 213 Other (18) (37) (17) (29) (101) (20) (22) (19) (24) (85) Total segment after-tax operating income – before special items 748 749 251 420 2,168 701 853 500 445 2,499 Exchange gains and losses (18) (9) 2 (7) (32) (16) (10) (19) 9 (36) Corporate expenses and interest (108) (110) (118) (117) (453) (121) (124) (69) (99) (413) Corporate minority interest 2 (7) (7) – – (14) (12) (8) (11) (10) (41) Income before special items 3 615 623 135 296 1,669 552 711 401 345 2,009 After-Tax Impact of Special Items 4 INVISTA related items – – (1,039) 343 (696) – – – – – Restructuring and asset impairment charges – – – 12 12 19 (197) 17 (39) (200) Gain on asset sales – 41 – – 41 – 12 51 27 90 Litigation costs (51) – 16 (15) (50) – (31) – (50) (81) Pioneer acquisition related costs – – – – – – – – 67 67 Other – 11 15 – 26 (92) 48 – – (44) Net impact of special items (51) 52 (1,008) 340 (667) (73) (168) 68 5 (168) Income (loss) 4 $ 564 $ 675 $ (873) $ 636 $ 1,002 $ 479 $ 543 $ 469 $ 350 $ 1,841 2003 2002 1st 2nd 3rd 4th Full Yr. 1st 2nd 3rd 4th Full Yr. Earnings Per Share of Common Stock – Diluted 3, 5 Earnings before special items $ 0.61 $ 0.62 $ 0.13 $ 0.29 $ 1.66 $ 0.55 $ 0.71 $ 0.40 $ 0.34 $ 2.00 Special items (0.05) 0.05 (1.01) 0.34 (0.67) (0.07) (0.17) 0.07 0.01 (0.16) Reported earnings $ 0.56 $ 0.67 $ (0.88) $ 0.63 $ 0.99 $ 0.48 $ 0.54 $ 0.47 $ 0.35 $ 1.84 1 Sales include transfers and pro rata share of equity affiliate sales. 2 Represents a rate of return to minority interest investors who made capital contributions during 2001 to consolidated subsidiaries. 3 Before cumulative effect of changes in accounting principles. 4 For complete details of special items and income adjusted for special items, see the DuPont quarterly earnings releases. 5 Earnings per share for the year may not equal the sum of quarterly earnings per share due to changes in average share calculations. D P 7 U ONT
CORPORATE FINANCIAL DATA Consolidated Income Statement (dollars in millions, except per share) 2003 2002 2001 2000 1999 Net sales $26,996 $24,006 $24,726 $28,268 $26,918 Other income 1 734 516 644 934 974 Total 27,730 24,522 25,370 29,202 27,892 Cost of goods sold and other operating charges 19,476 16,296 16,727 18,207 16,991 Selling, general and administrative expenses 2,995 2,699 2,925 3,041 2,595 Depreciation 1,355 1,297 1,320 1,415 1,444 Amortization of goodwill and other intangible assets 229 218 434 445 246 Research and development expense 1,349 1,264 1,588 1,776 1,617 Interest expense 347 359 590 810 535 Purchased in-process research and development – – – (11) 2,250 Restructuring and asset impairment charges (17) 290 1,078 101 524 Separation charges – Textile & Interiors 1,620 – – – – Goodwill impairment – Textiles & Interiors 295 – – – – Gain on sale of DuPont Pharmaceuticals – (25) (6,136) – – Gain on sale of interest by subsidiary – nonoperating (62) – – – – Gain on issuance of stock by affiliates – nonoperating – – – (29) – Total 27,587 22,398 18,526 25,755 26,202 Income from continuing operations before income taxes and minority interests 143 2,124 6,844 3,447 1,690 Provision for (benefit from) income taxes (930) 185 2,467 1,072 1,410 Minority interests in earnings of consolidated subsidiaries 71 98 49 61 61 Income from continuing operations 1,002 1,841 4,328 2,314 219 Discontinued operations Gain on disposal of discontinued business, net of taxes – – – – 7,471 Income before cumulative effect of changes in accounting principles 1,002 1,841 4,328 2,314 7,690 Cumulative effect of changes in accounting principles, net of taxes (29) (2,944) 11 – – Net income (loss) $ 973 $ (1,103) $ 4,339 $ 2,314 $ 7,690 Diluted earnings (loss) per share of common stock Continuing operations before cumulative effect of changes in accounting principles $ 0.99 $ 1.84 $ 4.15 $ 2.19 $ .19 Discontinued operations – – – – 6.80 Before cumulative effect of changes in accounting principles 0.99 1.84 4.15 2.19 6.99 Cumulative effect of changes in accounting principles (0.03) (2.95) .01 – – Net income (loss) $ 0.96 $ (1.11) $ 4.16 $ 2.19 $ 6.99 1 Other Income: Royalty income $ 141 $ 128 $ 155 $ 160 $ 127 Interest income, net of miscellaneous interest expense 70 97 146 168 185 Equity in earnings (losses) of affiliates 10 36 (43) 289 135 Net gains on sales of assets 17 30 47 394 16 Net exchange losses (134) (294) (29) (35) (107) Cozaar ®/Hyzaar ® income 573 469 321 92 87 Miscellaneous income and expenses – net 57 50 47 (134) 531 Total Other Income $ 734 $ 516 $ 644 $ 934 $ 974 8 D P U ONT
Consolidated Balance Sheet (dollars in millions) 2003 2002 2001 2000 1999 Assets Current assets Cash and cash equivalents $ 3,273 $ 3,678 $ 5,763 $ 1,540 $ 1,466 Marketable debt securities 25 465 85 77 116 Accounts and notes receivable 4,218 3,884 3,903 4,552 5,318 Inventories 4,107 4,409 4,215 4,658 5,057 Prepaid expenses 208 175 217 228 202 Income taxes 1,141 848 618 601 494 Assets held for sale 5,490 – – – – Total current assets 18,462 13,459 14,801 11,656 12,653 Property, plant and equipment 24,149 33,732 33,778 34,650 35,416 Less: accumulated depreciation 14,257 20,446 20,491 20,468 20,545 Net property, plant and equipment 9,892 13,286 13,287 14,182 14,871 Goodwill 1,939 1,167 3,746 3,935 3,900 Other intangible assets 2,986 3,151 4,430 4,824 3,109 Investment in affiliates 1,304 2,045 2,206 1,459 2,047 Other assets 2,456 3,289 3,017 3,070 1,553 Total $37,039 $34,621 $40,319 $39,426 $40,777 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 2,412 $ 2,727 $ 2,219 $ 2,731 $ 2,780 Short-term borrowings and capital lease obligations 5,914 1,185 1,464 3,247 4,941 Income taxes 60 47 1,295 250 359 Other accrued liabilities 2,963 3,137 3,089 3,027 3,148 Liabilities held for sale 1,694 – – – – Total current liabilities 13,043 7,096 8,067 9,255 11,228 Long-term borrowings and capital lease obligations 4,301 5,350 6,658 6,625 5,647 Other liabilities 8,909 8,447 8,614 8,629 9,829 Deferred income taxes 508 1,579 1,220 903 563 Total liabilities 26,761 23,443 25,747 27,385 23,135 Minority interests 497 2,424 380 517 2,423 Stockholders’ equity 9,781 14,452 13,299 12,875 9,063 Total $37,039 $34,621 $ 40,319 $39,426 $40,777 D P 9 U ONT
CORPORATE FINANCIAL DATA Consolidated Statement of Cash Flows (dollars in millions) 2003 2002 2001 2000 1999 Cash provided by continuing operations Net income (loss) $ 973 $(1,103) $ 4,339 $ 2,314 $ 7,690 Adjustments to reconcile net income to cash provided by continuing operations: Net income from discontinued operations – – – – (7,471) Cumulative effect of changes in accounting principles 29 2,944 (11) – – Depreciation 1,355 1,297 1,320 1,415 1,444 Amortization of goodwill and other intangible assets 229 218 434 445 246 Separation charges – Textiles & Interiors 1,620 – – – – Goodwill impairment – Textiles & Interiors 295 – – – – Purchased in-process research and development – – – – 2,250 Gain on sale of DuPont Pharmaceuticals – (25) (6,136) – – Other noncash charges and credits – net 334 833 1,000 648 334 Decrease (increase) in operating assets: Accounts and notes receivable (852) 468 435 379 (21) Inventories and other operating assets (125) (476) (362) (727) (384) Increase (decrease) in operating liabilities: Accounts payable and other operating liabilities (51) (158) (408) 215 155 Accrued interest and income taxes (1,218) (1,559) 1,843 141 488 Cash provided by continuing operations 2,589 2,439 2,454 4,830 4,731 Investing activities of continuing operations Purchases of property, plant and equipment (1,713) (1,280) (1,494) (1,925) (2,055) Investments in affiliates (71) (136) (140) (97) (48) Payments for businesses (net of cash acquired) (1,527) (697) (78) (46) (5,073) Proceeds from sales of assets 17 196 253 703 609 Net cash flows related to sale of DuPont Pharmaceuticals – (122) 7,798 – – Purchase of beneficial interest in securitized trade receivables (445) – – – – Maturity/repayment of beneficial interest in securitized trade receivables 445 – – – – Net decrease (increase) in short-term financial instruments 458 (318) (2) 25 (258) Forward exchange contract settlements (631) (264) 93 139 79 Miscellaneous – net 92 29 (117) 96 14 Cash provided by (used for) investing activities of continuing operations (3,375) (2,592) 6,313 (1,105) (6,732) Financing activities Dividends paid to stockholders (1,407) (1,401) (1,460) (1,465) (1,511) Net increase (decrease) in short-term (less than 90 days) borrowings 3,824 607 (1,588) (95) (3,244) Long-term and other borrowings: Receipts 553 934 904 4,996 8,420 Payments (954) (1,822) (2,342) (6,473) (5,582) Acquisition of treasury stock – (470) (1,818) (462) (690) Proceeds from exercise of stock options 52 34 153 63 168 Increase in minority interests – – 1,980 – 105 Redemption of minority interest structures (2,037) – – – – Cash provided by (used for) financing activities 31 (2,118) (4,171) (3,436) (2,334) Net cash flow from discontinued operations 1 – – (110) – 4,475 Effect of exchange rate changes on cash 425 186 (263) (215) (108) Increase (decrease) in cash and cash equivalents $ (330) $(2,085) $ 4,223 $ 74 $ 32 Cash and cash equivalents at beginning of year 3,678 1,540 1,466 1,434 5,763 Cash and cash equivalents at end of year $ 3,348 2 $ 5,763 $ 1,540 $ 1,466 $ 3,678 1 Includes payments of direct expenses related to the Conoco divestiture. 2 Includes cash classified as assets held for sale within the Consolidated Balance Sheet. 10 D P U ONT
Selected Additional Data (dollars in millions) 2003 2002 2001 2000 1999 Effective Income Tax Rate Statutory U.S. federal income tax rate 35.0% 35.0% 35.0% 35.0% 35.0% Separation charges related to INVISTA 83.8 – – – – Tax basis investment losses on foreign subsidiaries (467.5) – – – – International operations, including settlements (238.8) (19.0) (0.8) (3.2) 4.7 Lower effective tax rate on export sales (23.8) (2.2) (0.6) (1.7) (2.2) Domestic operations (45.2) (2.1) 1.0 (0.1) (1.1) Postemployment costs – (2.3) – 0.6 – State taxes 6.2 (0.7) 1.4 0.5 0.4 In-process research & development* – – – – 46.6 Effective income tax rate (650.3)% 8.7% 36.0% 31.1% 83.4% * The charge associated with the 1999 Pioneer transaction was not tax effected because the purchase was a stock acquisition rather than an asset purchase. 2003 2002 2001 2000 1999 As a percentage of net sales: Cost of goods sold and other operating charges 72% 68% 68% 64% 63% Selling, general and administrative expenses 11 11 12 11 10 Research and development expense 5 5 6 6 6 Income from continuing operations before special items 6 8 5 10 11 Cash provided by continuing operations 10 10 10 17 18 Research and Development Expenditures Amount per Consolidated Income Statement $1,349 $1,264 $1,588 $1,776 $1,617 Breakdown by product area: Polymer Science 40% 43% 32% 30% 36% Health Science – – 28 32 29 Agricultural Science 43 40 30 29 26 Electronic Materials 11 11 6 5 5 Chemicals 6 6 4 4 4 Total 100% 100% 100% 100% 100% Selected Additional Data Annual percent change in consolidated sales versus prior year* 9% 1% (10)% 1% 0% Portion due to U.S. dollar selling prices 4 (3) (2) (1) (3) Portion due to volume and mix* 5 4 (8) 2 3 Average manufacturing capacity utilization 80% 81% 78% 81% 83% * Percentage changes are calculated using sales adjusted to exclude current-year sales from acquisitions when there are no comparable prior-year sales, and to exclude prior-year sales of businesses that have been divested. D P 11 U ONT
CORPORATE FINANCIAL DATA Selected Additional Data (dollars in millions, except per share) 2003 2002 2001 Financial Results by Quarter Net sales 1st $ 7,008 $ 6,142 $ 6,859 2nd 7,369 6,700 6,997 3rd 6,142 5,482 5,641 4th 6,477 5,682 5,229 Total $26,996 $ 24,006 $24,726 Income before special items 1st $ 615 $ 552 $ 567 2nd 623 711 432 3rd 135 401 128 4th 296 345 124 Total $ 1,669 $ 2,009 $ 1,251 Earnings before special items per share of common stock – diluted 1st $ 0.61 $ .55 $ .54 2nd 0.62 .71 .41 3rd 0.13 .40 .12 4th 0.29 .34 .12 Total $ 1.66 $ 2.00 $ 1.19 Geographic Information 2003 2002 2001 Net Net Net Net Net Net Sales 1 Property 2 Sales 1 Property Sales 1 Property North America United States $12,108 $ 7,452 $11,422 $ 8,282 $12,054 $ 8,167 Canada 894 676 859 601 918 536 Mexico 568 169 546 172 559 164 Other 76 143 64 82 82 85 Total $13,646 $ 8,440 $12,891 $ 9,137 $13,613 $ 8,952 Europe, Middle East and Africa Germany $ 1,946 $ 528 $ 1,609 $ 552 $ 1,590 $ 585 France 982 133 859 126 929 170 Italy 959 29 767 27 854 25 United Kingdom 710 714 626 701 704 709 Other 2,825 1,245 2,451 1,205 2,354 1,243 Total $ 7,422 $ 2,649 $ 6,312 $ 2,611 $ 6,431 $ 2,732 Asia Pacific China/Hong Kong $ 1,232 $ 232 $ 941 $ 150 $ 819 $ 134 Japan 899 81 840 73 906 75 Taiwan 792 547 707 582 663 632 Korea 509 51 434 49 395 50 Singapore 128 343 108 285 110 325 Other 982 69 817 76 764 76 Total $ 4,542 $ 1,323 $ 3,847 $ 1,215 $ 3,657 $ 1,292 South America Brazil $ 860 $ 481 $ 573 $ 227 $ 576 $ 187 Argentina 221 85 176 73 223 102 Other 305 42 207 23 226 22 Total $ 1,386 $ 608 $ 956 $ 323 $ 1,025 $ 311 Total $26,996 $13,020 $24,006 $13,286 $24,726 $13,287 1 Net sales are attributed to countries based on location of customer. 2 Includes property, plant and equipment classified as assets held for sale in the Consolidated Balance Sheet. 12 D P U ONT
Net Sales Outside the United States as a Percentage of Sales 2003 2002 2001 Agriculture & Nutrition 53% 51% 52% Coatings & Color Technologies 66 61 61 Electronic & Communication Technologies 58 57 55 Performance Materials 58 54 52 Pharmaceuticals – – 34 Safety & Protection 39 39 38 Textiles & Interiors 55 52 50 Other 71 56 85 Total 55% 53% 51% Exports from the United States 2003 2002 2001 Net sales (dollars in millions) $5,226 $4,519 $4,673 As a percentage of net sales 19% 19% 19% Purchased Materials and Energy Cost Index (1977 = 100; period average) 2003 2002 2001 2000 1999 Basic Materials 159 156 163 160 164 Precious Metals 201 226 289 324 240 Chemicals 193 172 178 174 157 Hydrocarbons 219 168 183 198 137 Energy 356 270 332 289 218 Total Purchased Index 214 183 200 198 164 Total Variable Cost of Goods Top Purchased Energy and Raw Materials (for scale only) Primary Uses Natural Gas ........................ Nylon Cyclohexane ................... Nylon Paraxylene ................... Polyester Electricity ................... Various Butadiene ................... Nylon Ethane .......................... Packaging Polymers Ammonia ........................ Nylon Titanium Ores .................. White Pigments Fiberglass ........................... Engineering Polymers Organic Pigments .................. Performance Coatings Chlorine .................................... White Pigments Precious Metals .......................... Electronics D P 13 U ONT
CORPORATE FINANCIAL DATA Selected Additional Data Price and Volume* Change Summary U.S. Dollar Selling Price and Sales Volume Worldwide U.S. Dollar Selling Price and Sales Volume Worldwide Percentage Change from Prior Year Indices, 1990 = 100 150 10 145 8 140 135 6 130 4 125 120 2 115 0 110 105 -2 100 -4 95 90 -6 85 80 -8 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 U.S. Dollar Price Local Price Volume U.S. Dollar Price Volume Selling Price % Change from Prior Year Sales Volume % Change from Prior Year* Year Worldwide U.S. Other Regions USD Local USD Local Year Worldwide U.S. Other Regions 1994 (1) (1) (1) (2) (2) 1994 9 5 14 1995 5 3 3 8 3 1995 4 1 6 1996 (2) (1) 0 (4) (4) 1996 4 3 5 1997 (3) 0 0 (7) 0 1997 7 5 10 1998 (2) 0 (1) (3) 2 1998 (2) (3) (1) 1999 (3) (3) (2) (4) (3) 1999 3 1 6 2000 (1) 2 1 (4) 2 2000 2 (3) 7 2001 (2) 0 (1) (4) 0 2001 (9) (14) (3) 2002 (3) (4) (3) (3) (4) 2002 4 3 6 2003 4 (1) 0 8 (1) 2003 5 2 7 2003 Selling Price % Change from Prior Year 2003 Sales Volume % Change from Prior Year* Qtr Worldwide U.S. Other Regions USD Local USD Local Qtr Worldwide U.S. Other Regions 1st 5 (1) 0 10 (2) 1st 7 2 12 2nd 6 1 1 12 2 2nd 0 (1) 1 3rd 2 (1) (1) 5 (1) 3rd 5 2 8 4th 3 (1) 0 6 (2) 4th 7 7 8 Year 4 (1) 0 8 (1) Year 5 2 7 * Price and volume changes are as a percentage of consolidated sales. Volume percentage changes are calculated using sales adjusted to exclude current-year sales from acquisitions when there are no comparable prior-year sales and to exclude prior-year sales of businesses that have been divested. 14 D P U ONT
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du pont 2003 Data Book

  • 1. DUPONT 2003 DATA BOOK
  • 2. Contents DUPONT INVESTOR RELATIONS 1 | DuPont Leadership Ann K. M. Gualtieri Vice President DuPont Investor Relations and Corporate Plans 2 | 2003 @ a Glance (302) 774-0583 4 | Corporate Financial Data Highlights David L. Peet Segment Information Director Consolidated Income Statement (302) 774-1125 Consolidated Balance Sheet Consolidated Statement of Cash Flows Selected Additional Data Joyce A. McGhee 15 | The DuPont Commitment: Manager (302) 774-6088 Safety, Health and the Environment 16 | The New DuPont Carol A. Wolff 18 | Business Segments Investor Relations Agriculture & Nutrition Coordinator Coatings & Color Technologies (302) 774-9870 Electronic & Communication Technologies Performance Materials Safety & Protection Pharmaceuticals Textiles & Interiors Other 40 | Major Sites and Principal Products DuPont DATA BOOK has been prepared to assist financial analysts, portfolio managers and others in understanding and evaluating the company. This book presents graphics, tabular and other statistical data about the consolidated company and its business segments. The information presented in this book is either included in, or can be calculated from information included in, previously published company reports on Forms 10K and 10Q. Dollars are in millions except per share or where otherwise indicated. Most notes to financial statements are not included. This information is only a summary and should be read in conjunction with the company’s audited consolidated financial statements and “Management’s Discussion and Analysis” located in the 2003 Annual Report on Form 10K filed with the Securities and Exchange Commission. DuPont DATA BOOK is available on the Web at www.dupont.com. The DuPont Oval Logo, DuPontTM, The miracles of science® and all products denoted with TM or ® are trademarks or registered trademarks Main Office Number (302) 774-4994 of E.I. du Pont de Nemours and Company or its affiliates. Fax (302) 773-2631 May 2004 Internet www.dupont.com
  • 3. BOARD OF SENIOR DIRECTORS LEADERS Charles O. Holliday, Jr. * Chairman of the Board and Chief Executive Officer Alain J. P. Belda * †† Chairman and Chief Executive Officer, ▲ James C. Borel Thomas M. Edward J. Donnelly J. Erik Fyrwald Alcoa Inc. ▲ Connelly, Jr. Senior Vice President Group Vice President Group Vice President DuPont Human DuPont Coatings & DuPont Agriculture Senior Vice President Richard H. Brown * ††† Resources Color Technologies & Nutrition and Chief Science & Former Chairman of the Board and Technology Officer Chief Executive Officer, Electronic Data Systems Curtis J. Crawford † ††† President and Chief Executive Officer, XCEO, Inc. John T. Dillon * † Retired Chairman of the Board and Chief Executive Officer, ▲ Richard R. Diane H. Gulyas John C. Hodgson Charles O. International Paper ▲ ▲ Goodmanson Holliday, Jr. Chief Marketing & Senior Vice President Louisa C. Duemling ** Sales Officer Executive Vice President Chairman & Chief & Chief Operating Officer Executive Officer Deborah C. Hopkins † Chief Operations and Technology Officer, Citigroup, Inc. Lois D. Juliber * †† Chief Operating Officer, Colgate-Palmolive Company Masahisa Naitoh ** Chairman and Chief Executive Officer, The Institute of Energy Economics, Japan ▲ W. Donald Johnson Ellen J. Kullman Stacey J. Mobley Jeffrey L. Keefer Group Vice President Group Vice President Senior Vice President, Group Vice President William K. Reilly ** ††† DuPont Global Operations DuPont Safety Chief Administrative Officer DuPont Performance President and Chief Executive Officer, & Protection & General Counsel Materials Aqua International Partners, LP; Former Administrator, U.S. Environmental Protection Agency H. Rodney Sharp, III † †† Charles M. Vest † President, Massachusetts Institute of Technology ▲ Craig G. Naylor Gary M. Pfeiffer Board Committees: Group Vice President Senior Vice President † Audit Asia Pacific Region and & Chief Financial Officer †† Compensation DuPont Electronic & ††† Corporate Governance Communication ** Environmental Policy Technologies * Strategic Direction ▲ Member, Office of the Chief Executive
  • 4. DUPONT 2003 @ A GLANCE During 2003, DuPont made two significant announcements DuPont acquired the alkylation division of STRATCO, Inc., a regarding actions the company will take to remain competitive in an technology licensing company servicing oil refineries globally. environment defined by sustained high-energy costs, increased global The division was integrated into DuPont Refinery Solutions. competitive intensity, and a customer base that is shifting toward FEBRUARY emerging economies. DuPont announced that it developed, with joint development partner In November, DuPont announced it had signed a definitive Genencor International, an innovative bio-based method that uses the agreement with Koch Industries to sell INVISTA, its fibers and sugars from corn — instead of conventional petroleum-based related-intermediates businesses. This transaction closed in processes — to produce DuPontTM Sorona®, the latest polymer April 2004. platform for use in clothing, carpets and automobile interiors. In December, DuPont announced that it will take aggressive DuPont and Statoil signed an agreement to form a joint venture, productivity and organizational actions that will achieve a $900 Norferm A.S., to further develop the world’s only methane-based million cost improvement in 2005, with $450 million to be achieved fermentation production facility. The joint venture focuses on in 2004. The actions will strengthen the company’s ability to achieve developing new, high-value products for the animal feed markets. its sustainable growth goals of 6 percent top line growth, 10 percent sustainable earnings growth, and one percent improvement per year to MARCH return on invested capital. The actions include: DuPont unveiled a new corporate automotive safety initiative to leverage more than 60 existing DuPont product lines in auto safety • Reduce fixed costs to offset residual costs from the anticipated separation of INVISTA. systems and to help vehicle manufacturers and their suppliers focus on advanced safety systems. • Leverage and center staff functions, support services, and manufacturing operations broadly, including corporate costs. U.S. Environmental Protection Agency awarded DuPont its Clean These actions will facilitate standardization of systems and Air Excellence Award for DuPontTM SuperSolidsTM clearcoat. The processes across the company and enable commercial business ultra-low emissions coating lowers volatile organic compound leaders to more fully focus on customers, markets and growth. (VOC) emissions by more than 25 percent, while also improving • Improve variable margin by consolidating product lines and scratch and mar resistance 60 percent for automotive finishes. devoting more Six Sigma projects to margin improvement. DuPont acquired parts of the high-performance crystalline To strengthen its ability to achieve its revenue growth goals, DuPont plastics business of Eastman Chemical Company. The acquisition will rebalance resources toward emerging markets, where much of complements Engineering Polymer’s current offering in the its growth will occur in coming years. Initial focus will be on automotive and electrical/electronics industries. China, and additional areas of interest include Eastern and Central DuPont formed Photonics Technologies, L.L.C., to develop, Europe and Brazil. Additionally, the company will comprehensively manufacture and market planar integrated photonic devices for use and systematically improve its marketing and sales functions. in optical networks for the telecommunications industry. As it takes on these actions, the company remains committed to the DuPont introduced DuPontTM SuprelTM, a unique fabric based on a structure and strategy of the five Growth Platforms. Consistent across revolutionary composite technology that provides an advanced level all of the platforms, business teams will continue to focus on growth of comfort and protection for healthcare professionals. via the three critical pathways of Integrated Science, Knowledge Intensity and Productivity. Additional highlights of the year include: APRIL DuPont signed a Letter of Intent with Zhonghao New Chemical JANUARY Material Company and Changshu 3F Fluorochemical to form a DuPont and Bunge Limited announced that they intended to form an joint venture to manufacture hydrofluorocarbon (HFC) blend alliance to significantly grow their agriculture and nutrition businesses. refrigerants for the fast-growing air conditioning and refrigeration The alliance included a joint venture for the global production and industry in China. distribution of specialty food ingredients. The joint venture, which was formed in April, had pro forma sales of $800 million. Additionally, The U.S. Department of Agriculture adopted DuPont Qualicon the alliance included a biotechnology agreement to jointly develop and Bax® system to detect Salmonella in the nation’s ready-to-eat meat, commercialize soybeans with improved quality traits and an alliance to poultry and pasteurized eggs. In September, the USDA adopted develop a broader offering of services and products to farmers. the Bax® system for detecting Listeria monocytogenes in food. DuPont joined the Chicago Climate Exchange (CCX) as a founding To help frontline health care responders slow the spread of Severe member. CCX is a voluntary marketplace for reducing and trading Acute Respiratory Syndrome (SARS), DuPont announced it had greenhouse-gas emissions which enables its members to receive stepped up supply efforts for DuPontTM Tyvek® protective disposable credit for reductions and to buy and sell credits in order to find the garments in mainland China and Hong Kong. Throughout 2003, most cost-effective way of achieving reductions. DuPont filled orders for more than 8 million garments in Asia.
  • 5. President George W. Bush presents the National Medal of Technology to DuPont. CEO Chad Holliday accepts. MAY DuPontTM StormRoomTM with DuPontTM Kevlar®, a new residential storm shelter engineered to help offer a family protection from the dangers of tornadoes, complied with the Federal Emergency Management DUPONT WON OTHER NOTABLE AWARDS IN 2003: Agency’s guidelines on tornado shelters. Awarded the U.S. Environmental Protection JUNE Agency’s Presidential Green Chemistry Award for DuPont announced that DCI Acquisition Inc., a subsidiary of DuPont, bio-based process as the basis for production of successfully completed the tender offer for all of the class A common 1,3 propanediol (PDO) shares of DuPont Canada, not owned by DuPont or its affiliates. Ranked number 16 in the annual “World’s Most JULY Respected Companies” survey conducted by DuPont announced that Finish Line Technologies is the first PricewaterhouseCoopers for the Financial Times licensee in a focused effort to increase consumer preference for science-based products sold under the DuPont brand. The first Named the market sector leader in the chemicals products are aerosol lubricants based on DuPontTM Teflon® industry of the Dow Jones Sustainability World Index fluoropolymer technology. (DJSI). DuPont has been a component of the DJSI since its inception SEPTEMBER DuPont announced it signed a land reservation agreement in the Jiangsu DuPont Chairman and CEO Chad Holliday was honored province of the People’s Republic of China. The agreement supports by the U.S. Council for International Business for his DuPont’s intent to establish a fluorochemical and fluoropolymer significant policy leadership in improving the global manufacturing center in China over the next several years. competitive framework for U.S. business OCTOBER Named one of the safest U.S. companies by DuPont and the U.S. Department of Energy’s National Renewable Occupational Hazards magazine Energy Laboratory announced a joint research agreement leading toward the development of the world’s first integrated “bio-refinery” For the second time in three years, DuPont Engineering that uses corn or other renewable resources — rather than Polymers was recognized as Polymer Producer of the traditional petrochemicals — to produce a host of valuable fuels Year at the annual UK Plastics Industry Awards and value-added chemicals. DuPont acquired Antec International, a leading biosecurity company Ranked as one of the “100 Best Companies for Working providing human and animal health emergency disease control. Mothers” in the U.S. by Working Mother magazine President George W. Bush announced that DuPont was awarded the Named one of the most desired employers to work for National Medal of Technology — the highest honor for technological by Forbes Brazil magazine and Transearch International innovation in the U.S. — for its global leadership and innovation in developing alternative technology that reduced the environmental For the second consecutive year, DuPont Global impact caused by ozone-depleting chlorofluorocarbons. Sourcing & Logistics was named to the “Top Ten Best Supply Chains of 2003” by Logistics Today magazine NOVEMBER DuPont announced it will construct a $15 million corporate research For the second consecutive year, named one of the and development facility near Shanghai to support growth in the Asia best places to work in Mexico, by the business magazine Pacific region. The center will be the third major DuPont R&D Expansion and the Great Place To Work® Institute facility outside the U.S. and is expected to open in early 2005. DuPont acquired Griffin Corporation's interest in Griffin LLC, thereby Named one of the “Top 30 Companies for becoming the sole owner. The purchase will enable DuPont to provide Executive Women” by The National Association for customers with a broader portfolio of crop protection products. Female Executives DECEMBER Honored by the American Chemistry Council for energy Growers planting Pioneer® brand corn hybrids won 22 of 27 categories efficiency improvements made in 2002 in the 2003 National Corn Growers Association corn yield contest. DuPont-led scientists discovered an innovative way to advance electronics applications through the use of DNA that sorts carbon nanotubes, providing a significant step in advancing nano-electronics applications.
  • 6. CORPORATE FINANCIAL DATA Corporate Highlights (dollars in millions, except per share) 2003 2002 Operating Results Net sales $26,996 $24,006 Income from continuing operations 1 1,002 1,841 Income from discontinued operations – – Net income (loss) 973 2 (1,103) 3 Income from continuing operations before special items 1 1,669 2,009 Depreciation 1,355 1,297 Cash provided by continuing operations 2,589 2,439 Capital expenditures 1,784 1,416 Research and development expense 6 1,349 1,264 Financial Position, Total assets $37,039 $34,621 Year End Working capital 5,419 6,363 Total debt 10,479 7 6,832 Stockholders’ equity 9,781 9,063 Data Per Common Share Income from continuing operations1, 8 $0.99 $1.84 Income from discontinued operations8 – – Net income (loss) 8 $0.96 2 $(1.11) 3 Income from continuing operations before special items 1, 8 $1.66 $2.00 Cash provided by continuing operations per share 8 $2.59 $2.44 Dividends $1.40 $1.40 Market price – year-end close $45.89 $42.40 high-low range $46.00 – $34.71 $49.80 – $35.02 Book value at year-end $9.57 $8.88 Average number of shares (millions) – diluted 1,000 999 Shares outstanding – year-end (millions) 997 994 Ratios Total stockholder return 11.5% 3.0% Dividend yield 9 3.1% 3.3% Share price increase (decrease) 8.2% (0.3)% P/E on income from continuing operations before special items1, 9 28 21 Dividend payout, as percentage of: Earnings per share from continuing operations before special items1 84% 70% Cash provided by continuing operations per share 54.1% 57.3% Return on average stockholders’ equity before special items1 17.9% 17.4% Return on average investors’ capital before special items1,10 9.0% 10.6% Cash provided by continuing operations as percentage of total debt7 24.7% 65.1% 11 Debt to total capital7 50.3% 37.3% Interest coverage ratio 12 7.9 9.7 Current ratio7 1.2 1.9 Employees Number of employees – year-end (thousands) 81 79 1 Before cumulative effect of changes in accounting principles. 2 Includes a cumulative effect of a change in accounting principle charge of $29 and $0.03 per share (diluted). 3 Includes a cumulative effect of a change in accounting principle charge of $2,944 and $2.95 per share (diluted). 4 Includes a cumulative effect of a change in accounting principle benefit of $11 and $.01 per share (diluted). 5 Includes strategic acquisition of $4,905 in 1999. 6 Excludes purchased in-process research and development. 7 Includes related assets and/or liabilities classified as held for sale within the Consolidated Balance Sheet. 8 Diluted, based on average number of common shares. 9 Based on year-end share price. 10 Proforma return on average investors’ capital reflecting the impact of the Conoco split-off on stockholders’ equity and debt equals 16% for 1999. 11 Ratio excludes increase in tax payments related to sale of DuPont Pharmaceuticals. 12 Income from continuing operations before special items and income taxes, plus the sum of interest expense and amortization of capitalized interest less interest income, divided by the sum of interest expense and capitalized interest less interest income. Use of Non-GAAP Measures Management believes that an analysis of earnings before special items is meaningful to investors because it provides insight with respect to ongoing operating results of the company. Special items represent significant charges or credits that are important to an understanding of the company’s ongoing operations. Such measurements are not recognized in accordance with generally accepted accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance. For a list of special items, see page 20 of the 2003 Annual Report on Form 10K. 4 D P U ONT
  • 7. 2001 2000 1999 Dividends Per Share Earnings Per Share – Diluted $24,726 $28,268 $26,918 4,328 2,314 219 Continuing Operations Before Special Items – – 7,471 (dollars) (dollars) 4,339 4 2,314 7,690 $1.50 $3.00 1,251 2,878 2,843 $2.50 1,320 1,415 1,444 2,454 4,830 4,731 $1.25 $2.00 1,634 2,022 6,988 5 $1.50 1,588 1,776 1,617 $1.00 $1.00 $40,319 $39,426 $40,777 6,734 2,401 1,425 $0.50 6,814 9,905 11,566 14,452 13,299 12,875 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 $ 4.15 $2.19 $0.19 – – $6.80 $ 4.16 4 $2.19 $6.99 $1.19 $2.73 $2.58 $2.36 $4.60 $4.31 $1.40 $1.40 $1.40 $42.51 $48.31 $65.88 Five-Year Performance 1999– 2003 $49.88 – $32.64 $74.00 – $38.19 $75.19 – $50.06 $14.20 $12.57 $12.09 Stockholder Return DuPont S&P 500 1,041 1,051 1,098 Dividend Yield 2.9% 1.4% 1,002 1,039 1,045 Share Price Annual Appreciation (2.9)% (2.0)% (9.1)% (24.5)% 26.8% 3.3% 2.9% 2.1% Total Annual Return* 0.1% (0.6)% (12.0)% (26.7)% 24.1% 36 18 26 Dividend Growth 0.5% 1.4% 117% 51% 53% 59.4% 30.5% 32.5% Ten-Year Performance 1994–2003 9.4% 21.8% 21.5% 6.8% 13.8% 13.4% Stockholder Return DuPont S&P 500 36.0% 48.8% 40.9% Dividend Yield 2.8% 1.7% 28.8% 42% 46.3% 4.7 6.7 9.7 Share Price Annual Appreciation 6.6% 9.1% 1.8 1.3 1.1 Total Annual Return* 9.7% 11.1% 79 93 94 Dividend Growth 4.8% 3.2% * Assumes a steady compounded rate of return over the period shown and includes reinvestment of dividends. D P 5 U ONT
  • 8. CORPORATE FINANCIAL DATA Segment Information (dollars in millions) 2003 2002 2001 Segment Sales 1 Agriculture & Nutrition $ 5,470 $ 4,516 $ 4,295 Coatings & Color Technologies 5,503 5,026 4,917 Electronic & Communication Technologies 2,892 2,540 2,688 Performance Materials 5,376 4,926 4,727 Pharmaceuticals – – 902 Safety & Protection 4,071 3,477 3,569 Textiles & Interiors 6,937 6,221 6,443 Other 19 22 148 Total segment sales 30,268 26,728 27,689 Elimination of transfers (940) (375) (480) Elimination of equity affiliate sales (2,332) (2,351) (2,493) Miscellaneous – 4 10 Net sales per Consolidated Financial Statements $26,996 $24,006 $24,726 Segment After-Tax Operating Income – Before Special Items Agriculture & Nutrition $ 498 $ 427 $ 246 Coatings & Color Technologies 474 525 498 Electronic & Communication Technologies 146 216 283 Performance Materials 262 426 279 Pharmaceuticals 340 290 58 Safety & Protection 536 487 485 Textiles & Interiors 13 213 68 Other (101) (85) (58) Total segment after-tax operating income – before special items 2,168 2,499 1,859 (32) (36) (15) Exchange gains and losses Corporate expenses and interest (453) (413) (577) Corporate minority interest 2 (14) (41) (16) Income before special items 3 1,669 2,009 1,251 Net special items 4 (667) (168) 3,077 Reported income 3 $ 1,002 $ 1,841 $ 4,328 1 Sales include transfers and pro rata share of equity affiliate sales. 2 Represents a rate of return to minority interest investors who made capital contributions during 2001 to consolidated subsidiaries. 3 Before cumulative effect of changes in accounting principles. 4 For complete details of special items, see the DuPont 2003 Form 10-K. DuPont’s Share of DuPont’s Share of Equity Affiliate Sales Equity Affiliate Earnings 2003 2002 2001 2003 2002 2001 2000 Equity Affiliate Analysis Agriculture & Nutrition $152 $ 176 $ 188 $ (7) $ (6) $ (13) Coatings & Color Technologies 70 109 127 3 (3) (6) Electronic & Communication Technologies 233 212 251 8 10 11 Performance Materials 1,144 1,073 1,024 9 33 (16) Safety & Protection 58 55 89 14 10 10 Textiles & Interiors 675 726 814 (277) (4) (33) Other – – – – – – Total segments $2,332 $2,351 $2,493 $(250) $ 40 $ (47) 6 D P U ONT
  • 9. 2003 2002 1st 2nd 3rd 4th Full Yr. 1st 2nd 3rd 4th Full Yr. Segment Sales 1 Agriculture & Nutrition $ 1,790 $ 1,886 $ 803 $ 991 $ 5,470 $ 1,606 $ 1,558 $ 609 $ 743 $ 4,516 Coatings & Color Technologies 1,269 1,419 1,378 1,437 5,503 1,137 1,312 1,276 1,301 5,026 Electronic & Communication Technologies 677 737 728 750 2,892 578 682 645 635 2,540 Performance Materials 1,336 1,354 1,299 1,387 5,376 1,163 1,292 1,252 1,219 4,926 Safety & Protection 985 1,061 998 1,027 4,071 827 892 852 906 3,477 Textiles & Interiors 1,717 1,779 1,744 1,697 6,937 1,439 1,681 1,567 1,534 6,221 Other 3 4 5 7 19 8 2 6 6 22 Total segment sales $ 7,777 $ 8,240 $ 6,955 $ 7,296 $30,268 $ 6,758 $ 7,419 $ 6,207 $ 6,344 $ 26,728 Segment After-Tax Operating Income – Before Special Items Agriculture & Nutrition $ 378 $ 341 $ (142) $ (79) $ 498 $ 323 $ 286 $ (98) $ (84) $ 427 Coatings & Color Technologies 74 132 120 148 474 85 136 168 136 525 Electronic & Communication Technologies 21 39 32 54 146 45 57 66 48 216 Performance Materials 75 73 55 59 262 84 124 128 90 426 Pharmaceuticals 95 54 85 106 340 51 60 72 107 290 Safety & Protection 128 140 126 142 536 103 119 124 141 487 Textiles & Interiors (5) 7 (8) 19 13 30 93 59 31 213 Other (18) (37) (17) (29) (101) (20) (22) (19) (24) (85) Total segment after-tax operating income – before special items 748 749 251 420 2,168 701 853 500 445 2,499 Exchange gains and losses (18) (9) 2 (7) (32) (16) (10) (19) 9 (36) Corporate expenses and interest (108) (110) (118) (117) (453) (121) (124) (69) (99) (413) Corporate minority interest 2 (7) (7) – – (14) (12) (8) (11) (10) (41) Income before special items 3 615 623 135 296 1,669 552 711 401 345 2,009 After-Tax Impact of Special Items 4 INVISTA related items – – (1,039) 343 (696) – – – – – Restructuring and asset impairment charges – – – 12 12 19 (197) 17 (39) (200) Gain on asset sales – 41 – – 41 – 12 51 27 90 Litigation costs (51) – 16 (15) (50) – (31) – (50) (81) Pioneer acquisition related costs – – – – – – – – 67 67 Other – 11 15 – 26 (92) 48 – – (44) Net impact of special items (51) 52 (1,008) 340 (667) (73) (168) 68 5 (168) Income (loss) 4 $ 564 $ 675 $ (873) $ 636 $ 1,002 $ 479 $ 543 $ 469 $ 350 $ 1,841 2003 2002 1st 2nd 3rd 4th Full Yr. 1st 2nd 3rd 4th Full Yr. Earnings Per Share of Common Stock – Diluted 3, 5 Earnings before special items $ 0.61 $ 0.62 $ 0.13 $ 0.29 $ 1.66 $ 0.55 $ 0.71 $ 0.40 $ 0.34 $ 2.00 Special items (0.05) 0.05 (1.01) 0.34 (0.67) (0.07) (0.17) 0.07 0.01 (0.16) Reported earnings $ 0.56 $ 0.67 $ (0.88) $ 0.63 $ 0.99 $ 0.48 $ 0.54 $ 0.47 $ 0.35 $ 1.84 1 Sales include transfers and pro rata share of equity affiliate sales. 2 Represents a rate of return to minority interest investors who made capital contributions during 2001 to consolidated subsidiaries. 3 Before cumulative effect of changes in accounting principles. 4 For complete details of special items and income adjusted for special items, see the DuPont quarterly earnings releases. 5 Earnings per share for the year may not equal the sum of quarterly earnings per share due to changes in average share calculations. D P 7 U ONT
  • 10. CORPORATE FINANCIAL DATA Consolidated Income Statement (dollars in millions, except per share) 2003 2002 2001 2000 1999 Net sales $26,996 $24,006 $24,726 $28,268 $26,918 Other income 1 734 516 644 934 974 Total 27,730 24,522 25,370 29,202 27,892 Cost of goods sold and other operating charges 19,476 16,296 16,727 18,207 16,991 Selling, general and administrative expenses 2,995 2,699 2,925 3,041 2,595 Depreciation 1,355 1,297 1,320 1,415 1,444 Amortization of goodwill and other intangible assets 229 218 434 445 246 Research and development expense 1,349 1,264 1,588 1,776 1,617 Interest expense 347 359 590 810 535 Purchased in-process research and development – – – (11) 2,250 Restructuring and asset impairment charges (17) 290 1,078 101 524 Separation charges – Textile & Interiors 1,620 – – – – Goodwill impairment – Textiles & Interiors 295 – – – – Gain on sale of DuPont Pharmaceuticals – (25) (6,136) – – Gain on sale of interest by subsidiary – nonoperating (62) – – – – Gain on issuance of stock by affiliates – nonoperating – – – (29) – Total 27,587 22,398 18,526 25,755 26,202 Income from continuing operations before income taxes and minority interests 143 2,124 6,844 3,447 1,690 Provision for (benefit from) income taxes (930) 185 2,467 1,072 1,410 Minority interests in earnings of consolidated subsidiaries 71 98 49 61 61 Income from continuing operations 1,002 1,841 4,328 2,314 219 Discontinued operations Gain on disposal of discontinued business, net of taxes – – – – 7,471 Income before cumulative effect of changes in accounting principles 1,002 1,841 4,328 2,314 7,690 Cumulative effect of changes in accounting principles, net of taxes (29) (2,944) 11 – – Net income (loss) $ 973 $ (1,103) $ 4,339 $ 2,314 $ 7,690 Diluted earnings (loss) per share of common stock Continuing operations before cumulative effect of changes in accounting principles $ 0.99 $ 1.84 $ 4.15 $ 2.19 $ .19 Discontinued operations – – – – 6.80 Before cumulative effect of changes in accounting principles 0.99 1.84 4.15 2.19 6.99 Cumulative effect of changes in accounting principles (0.03) (2.95) .01 – – Net income (loss) $ 0.96 $ (1.11) $ 4.16 $ 2.19 $ 6.99 1 Other Income: Royalty income $ 141 $ 128 $ 155 $ 160 $ 127 Interest income, net of miscellaneous interest expense 70 97 146 168 185 Equity in earnings (losses) of affiliates 10 36 (43) 289 135 Net gains on sales of assets 17 30 47 394 16 Net exchange losses (134) (294) (29) (35) (107) Cozaar ®/Hyzaar ® income 573 469 321 92 87 Miscellaneous income and expenses – net 57 50 47 (134) 531 Total Other Income $ 734 $ 516 $ 644 $ 934 $ 974 8 D P U ONT
  • 11. Consolidated Balance Sheet (dollars in millions) 2003 2002 2001 2000 1999 Assets Current assets Cash and cash equivalents $ 3,273 $ 3,678 $ 5,763 $ 1,540 $ 1,466 Marketable debt securities 25 465 85 77 116 Accounts and notes receivable 4,218 3,884 3,903 4,552 5,318 Inventories 4,107 4,409 4,215 4,658 5,057 Prepaid expenses 208 175 217 228 202 Income taxes 1,141 848 618 601 494 Assets held for sale 5,490 – – – – Total current assets 18,462 13,459 14,801 11,656 12,653 Property, plant and equipment 24,149 33,732 33,778 34,650 35,416 Less: accumulated depreciation 14,257 20,446 20,491 20,468 20,545 Net property, plant and equipment 9,892 13,286 13,287 14,182 14,871 Goodwill 1,939 1,167 3,746 3,935 3,900 Other intangible assets 2,986 3,151 4,430 4,824 3,109 Investment in affiliates 1,304 2,045 2,206 1,459 2,047 Other assets 2,456 3,289 3,017 3,070 1,553 Total $37,039 $34,621 $40,319 $39,426 $40,777 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 2,412 $ 2,727 $ 2,219 $ 2,731 $ 2,780 Short-term borrowings and capital lease obligations 5,914 1,185 1,464 3,247 4,941 Income taxes 60 47 1,295 250 359 Other accrued liabilities 2,963 3,137 3,089 3,027 3,148 Liabilities held for sale 1,694 – – – – Total current liabilities 13,043 7,096 8,067 9,255 11,228 Long-term borrowings and capital lease obligations 4,301 5,350 6,658 6,625 5,647 Other liabilities 8,909 8,447 8,614 8,629 9,829 Deferred income taxes 508 1,579 1,220 903 563 Total liabilities 26,761 23,443 25,747 27,385 23,135 Minority interests 497 2,424 380 517 2,423 Stockholders’ equity 9,781 14,452 13,299 12,875 9,063 Total $37,039 $34,621 $ 40,319 $39,426 $40,777 D P 9 U ONT
  • 12. CORPORATE FINANCIAL DATA Consolidated Statement of Cash Flows (dollars in millions) 2003 2002 2001 2000 1999 Cash provided by continuing operations Net income (loss) $ 973 $(1,103) $ 4,339 $ 2,314 $ 7,690 Adjustments to reconcile net income to cash provided by continuing operations: Net income from discontinued operations – – – – (7,471) Cumulative effect of changes in accounting principles 29 2,944 (11) – – Depreciation 1,355 1,297 1,320 1,415 1,444 Amortization of goodwill and other intangible assets 229 218 434 445 246 Separation charges – Textiles & Interiors 1,620 – – – – Goodwill impairment – Textiles & Interiors 295 – – – – Purchased in-process research and development – – – – 2,250 Gain on sale of DuPont Pharmaceuticals – (25) (6,136) – – Other noncash charges and credits – net 334 833 1,000 648 334 Decrease (increase) in operating assets: Accounts and notes receivable (852) 468 435 379 (21) Inventories and other operating assets (125) (476) (362) (727) (384) Increase (decrease) in operating liabilities: Accounts payable and other operating liabilities (51) (158) (408) 215 155 Accrued interest and income taxes (1,218) (1,559) 1,843 141 488 Cash provided by continuing operations 2,589 2,439 2,454 4,830 4,731 Investing activities of continuing operations Purchases of property, plant and equipment (1,713) (1,280) (1,494) (1,925) (2,055) Investments in affiliates (71) (136) (140) (97) (48) Payments for businesses (net of cash acquired) (1,527) (697) (78) (46) (5,073) Proceeds from sales of assets 17 196 253 703 609 Net cash flows related to sale of DuPont Pharmaceuticals – (122) 7,798 – – Purchase of beneficial interest in securitized trade receivables (445) – – – – Maturity/repayment of beneficial interest in securitized trade receivables 445 – – – – Net decrease (increase) in short-term financial instruments 458 (318) (2) 25 (258) Forward exchange contract settlements (631) (264) 93 139 79 Miscellaneous – net 92 29 (117) 96 14 Cash provided by (used for) investing activities of continuing operations (3,375) (2,592) 6,313 (1,105) (6,732) Financing activities Dividends paid to stockholders (1,407) (1,401) (1,460) (1,465) (1,511) Net increase (decrease) in short-term (less than 90 days) borrowings 3,824 607 (1,588) (95) (3,244) Long-term and other borrowings: Receipts 553 934 904 4,996 8,420 Payments (954) (1,822) (2,342) (6,473) (5,582) Acquisition of treasury stock – (470) (1,818) (462) (690) Proceeds from exercise of stock options 52 34 153 63 168 Increase in minority interests – – 1,980 – 105 Redemption of minority interest structures (2,037) – – – – Cash provided by (used for) financing activities 31 (2,118) (4,171) (3,436) (2,334) Net cash flow from discontinued operations 1 – – (110) – 4,475 Effect of exchange rate changes on cash 425 186 (263) (215) (108) Increase (decrease) in cash and cash equivalents $ (330) $(2,085) $ 4,223 $ 74 $ 32 Cash and cash equivalents at beginning of year 3,678 1,540 1,466 1,434 5,763 Cash and cash equivalents at end of year $ 3,348 2 $ 5,763 $ 1,540 $ 1,466 $ 3,678 1 Includes payments of direct expenses related to the Conoco divestiture. 2 Includes cash classified as assets held for sale within the Consolidated Balance Sheet. 10 D P U ONT
  • 13. Selected Additional Data (dollars in millions) 2003 2002 2001 2000 1999 Effective Income Tax Rate Statutory U.S. federal income tax rate 35.0% 35.0% 35.0% 35.0% 35.0% Separation charges related to INVISTA 83.8 – – – – Tax basis investment losses on foreign subsidiaries (467.5) – – – – International operations, including settlements (238.8) (19.0) (0.8) (3.2) 4.7 Lower effective tax rate on export sales (23.8) (2.2) (0.6) (1.7) (2.2) Domestic operations (45.2) (2.1) 1.0 (0.1) (1.1) Postemployment costs – (2.3) – 0.6 – State taxes 6.2 (0.7) 1.4 0.5 0.4 In-process research & development* – – – – 46.6 Effective income tax rate (650.3)% 8.7% 36.0% 31.1% 83.4% * The charge associated with the 1999 Pioneer transaction was not tax effected because the purchase was a stock acquisition rather than an asset purchase. 2003 2002 2001 2000 1999 As a percentage of net sales: Cost of goods sold and other operating charges 72% 68% 68% 64% 63% Selling, general and administrative expenses 11 11 12 11 10 Research and development expense 5 5 6 6 6 Income from continuing operations before special items 6 8 5 10 11 Cash provided by continuing operations 10 10 10 17 18 Research and Development Expenditures Amount per Consolidated Income Statement $1,349 $1,264 $1,588 $1,776 $1,617 Breakdown by product area: Polymer Science 40% 43% 32% 30% 36% Health Science – – 28 32 29 Agricultural Science 43 40 30 29 26 Electronic Materials 11 11 6 5 5 Chemicals 6 6 4 4 4 Total 100% 100% 100% 100% 100% Selected Additional Data Annual percent change in consolidated sales versus prior year* 9% 1% (10)% 1% 0% Portion due to U.S. dollar selling prices 4 (3) (2) (1) (3) Portion due to volume and mix* 5 4 (8) 2 3 Average manufacturing capacity utilization 80% 81% 78% 81% 83% * Percentage changes are calculated using sales adjusted to exclude current-year sales from acquisitions when there are no comparable prior-year sales, and to exclude prior-year sales of businesses that have been divested. D P 11 U ONT
  • 14. CORPORATE FINANCIAL DATA Selected Additional Data (dollars in millions, except per share) 2003 2002 2001 Financial Results by Quarter Net sales 1st $ 7,008 $ 6,142 $ 6,859 2nd 7,369 6,700 6,997 3rd 6,142 5,482 5,641 4th 6,477 5,682 5,229 Total $26,996 $ 24,006 $24,726 Income before special items 1st $ 615 $ 552 $ 567 2nd 623 711 432 3rd 135 401 128 4th 296 345 124 Total $ 1,669 $ 2,009 $ 1,251 Earnings before special items per share of common stock – diluted 1st $ 0.61 $ .55 $ .54 2nd 0.62 .71 .41 3rd 0.13 .40 .12 4th 0.29 .34 .12 Total $ 1.66 $ 2.00 $ 1.19 Geographic Information 2003 2002 2001 Net Net Net Net Net Net Sales 1 Property 2 Sales 1 Property Sales 1 Property North America United States $12,108 $ 7,452 $11,422 $ 8,282 $12,054 $ 8,167 Canada 894 676 859 601 918 536 Mexico 568 169 546 172 559 164 Other 76 143 64 82 82 85 Total $13,646 $ 8,440 $12,891 $ 9,137 $13,613 $ 8,952 Europe, Middle East and Africa Germany $ 1,946 $ 528 $ 1,609 $ 552 $ 1,590 $ 585 France 982 133 859 126 929 170 Italy 959 29 767 27 854 25 United Kingdom 710 714 626 701 704 709 Other 2,825 1,245 2,451 1,205 2,354 1,243 Total $ 7,422 $ 2,649 $ 6,312 $ 2,611 $ 6,431 $ 2,732 Asia Pacific China/Hong Kong $ 1,232 $ 232 $ 941 $ 150 $ 819 $ 134 Japan 899 81 840 73 906 75 Taiwan 792 547 707 582 663 632 Korea 509 51 434 49 395 50 Singapore 128 343 108 285 110 325 Other 982 69 817 76 764 76 Total $ 4,542 $ 1,323 $ 3,847 $ 1,215 $ 3,657 $ 1,292 South America Brazil $ 860 $ 481 $ 573 $ 227 $ 576 $ 187 Argentina 221 85 176 73 223 102 Other 305 42 207 23 226 22 Total $ 1,386 $ 608 $ 956 $ 323 $ 1,025 $ 311 Total $26,996 $13,020 $24,006 $13,286 $24,726 $13,287 1 Net sales are attributed to countries based on location of customer. 2 Includes property, plant and equipment classified as assets held for sale in the Consolidated Balance Sheet. 12 D P U ONT
  • 15. Net Sales Outside the United States as a Percentage of Sales 2003 2002 2001 Agriculture & Nutrition 53% 51% 52% Coatings & Color Technologies 66 61 61 Electronic & Communication Technologies 58 57 55 Performance Materials 58 54 52 Pharmaceuticals – – 34 Safety & Protection 39 39 38 Textiles & Interiors 55 52 50 Other 71 56 85 Total 55% 53% 51% Exports from the United States 2003 2002 2001 Net sales (dollars in millions) $5,226 $4,519 $4,673 As a percentage of net sales 19% 19% 19% Purchased Materials and Energy Cost Index (1977 = 100; period average) 2003 2002 2001 2000 1999 Basic Materials 159 156 163 160 164 Precious Metals 201 226 289 324 240 Chemicals 193 172 178 174 157 Hydrocarbons 219 168 183 198 137 Energy 356 270 332 289 218 Total Purchased Index 214 183 200 198 164 Total Variable Cost of Goods Top Purchased Energy and Raw Materials (for scale only) Primary Uses Natural Gas ........................ Nylon Cyclohexane ................... Nylon Paraxylene ................... Polyester Electricity ................... Various Butadiene ................... Nylon Ethane .......................... Packaging Polymers Ammonia ........................ Nylon Titanium Ores .................. White Pigments Fiberglass ........................... Engineering Polymers Organic Pigments .................. Performance Coatings Chlorine .................................... White Pigments Precious Metals .......................... Electronics D P 13 U ONT
  • 16. CORPORATE FINANCIAL DATA Selected Additional Data Price and Volume* Change Summary U.S. Dollar Selling Price and Sales Volume Worldwide U.S. Dollar Selling Price and Sales Volume Worldwide Percentage Change from Prior Year Indices, 1990 = 100 150 10 145 8 140 135 6 130 4 125 120 2 115 0 110 105 -2 100 -4 95 90 -6 85 80 -8 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 U.S. Dollar Price Local Price Volume U.S. Dollar Price Volume Selling Price % Change from Prior Year Sales Volume % Change from Prior Year* Year Worldwide U.S. Other Regions USD Local USD Local Year Worldwide U.S. Other Regions 1994 (1) (1) (1) (2) (2) 1994 9 5 14 1995 5 3 3 8 3 1995 4 1 6 1996 (2) (1) 0 (4) (4) 1996 4 3 5 1997 (3) 0 0 (7) 0 1997 7 5 10 1998 (2) 0 (1) (3) 2 1998 (2) (3) (1) 1999 (3) (3) (2) (4) (3) 1999 3 1 6 2000 (1) 2 1 (4) 2 2000 2 (3) 7 2001 (2) 0 (1) (4) 0 2001 (9) (14) (3) 2002 (3) (4) (3) (3) (4) 2002 4 3 6 2003 4 (1) 0 8 (1) 2003 5 2 7 2003 Selling Price % Change from Prior Year 2003 Sales Volume % Change from Prior Year* Qtr Worldwide U.S. Other Regions USD Local USD Local Qtr Worldwide U.S. Other Regions 1st 5 (1) 0 10 (2) 1st 7 2 12 2nd 6 1 1 12 2 2nd 0 (1) 1 3rd 2 (1) (1) 5 (1) 3rd 5 2 8 4th 3 (1) 0 6 (2) 4th 7 7 8 Year 4 (1) 0 8 (1) Year 5 2 7 * Price and volume changes are as a percentage of consolidated sales. Volume percentage changes are calculated using sales adjusted to exclude current-year sales from acquisitions when there are no comparable prior-year sales and to exclude prior-year sales of businesses that have been divested. 14 D P U ONT