ddnew industrial biosciences
TRANSCRIPT
Industrial BiosciencesJim Collins - President
Industrial Biosciences
Mission
Focused growth through bioprocessing technologies • Build on Genencor’s expertise in designing and operating cell factories
• Leverage Pioneer’s relationship with growers
• Apply DuPont’s capabilities in engineering and advanced materials
Intersection for innovation across DuPont’s competencies
Agriculture
and Nutrition
Industrial
BiosciencesAdvanced
Materials
2
Bioactives
Biomaterials
Key Segments in Our Business
Agriculture
and
Nutrition
Industrial
BiosciencesAdvanced
Materials
Bioactives Biomaterials
Bio-based products End use markets
Enzymes, proteins,
peptides
Food, feed, cleaning,
paper, personal care
Biorefineries: Biofuels
3
Biorefineries
Biochemicals
BiomaterialsCarpet, textiles
Ethanol
BiobutanolFuels
Bio-based Products End use markets
Bioactives
Biomaterials
Focused on Three Bio-based SegmentsServing a diverse set of customers
Enzymes, proteins,
peptides
Food, feed, cleaning,
paper, personal care
Sugars
Our Competitive Advantage
Carbon Sources Conversion
Starch
Biorefineries: Biofuels
4
Biochemicals
BiomaterialsCarpet, textiles
Ethanol
BiobutanolFuels
Bio/chemical transformation
Biomass
SugarsBio/chemical
transformation
Core Elements• Renewable, bio-based inputs
Based on Common Core Elements
Agriculture
and
Nutrition
Industrial
BiosciencesAdvanced
Materials
Bioactives Biomaterials• Renewable, bio-based inputs
• Design and operation of cell factories
• Deliver enhanced process and product
sustainability
5
Biorefineries
Core
Industrial Biosciences
Developing customer-driven solutions that enhance value creation, reduce
environmental footprints, and improve health & wellness for end users
$50B addressable market consisting of: Animal nutrition, food, cleaning/
detergents, textiles, carpet, personal care, feedstock processing, biofuels
Our Business
Our Markets
Our Business
Segments
Bioactives = enzymes, peptides and performance proteins for
markets such as food, animal nutrition, detergents, textiles
Biomaterials = advanced materials and intermediates
manufactured with renewable feedstocks
Biorefineries = products and technology for converting
agricultural feedstocks into carbohydrates and fuels
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Long-term growth targets: sales +10-12% CAGR with 15-17% margins
Who We Are And Where We Work
• Industrial Biosciences
is comprised of more
than 2500 dedicated
colleagues worldwide
• We discover and
develop market-based
biotechnology
solutions at 8 global
R&D sites
DuPont Industrial Biosciences
R&D sites
• We produce a broad
portfolio of products
and manage 19
operations sites
Research & Development
Centers
Production, Operations and
Pilot Sites
7
2011E Sales: $0.7B*
Industrial Biosciences SalesServing Customers in Multiple Markets Around the World
Region Business Unit End Market
ApparelFood
Enzymes
Other
Latin
America
8
BioactivesBiomaterials
Biorefineries Animal
nutrition
Feedstock
processing
Detergent
enzymes
Carpet
US & Canada
EMEA
Asia
Pacific
* Segment sales include transfers.
Addressable Market:
$50 Billion 2011-2015E CAGR
Animal
Nutrition$1.5 B
• Growing demand for protein in human diets
• More efficient and sustainable animal
production
8 – 10%
Detergent
Enzymes$1 B
• Rising affluence and demand for convenience
• Water and energy conservation5 – 7%
Food$1 B
• Natural and “clean” label7 – 9%
Industrial Biosciences MarketsKey Market Trends & Opportunities
MarketMarket Growth Drivers
Food
Enzymes$1 B
• Natural and “clean” label
• Improved processing and product shelf life7 – 9%
Renewable
Materials$20 B
• Desire for performance and renewability claims
• Supply diversification and stability in feedstocks2 – 7%
Biofuels $25+ B• Energy supply diversification and environmental
concerns
• Rural and “green” economy development
7 – 12%
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Feedstock / Aggregator Enzyme SupplierConversion EngineeringCatalysts / BiocatalystsApplication
Development
DuPont � � � � � �
DSM � � � �
Novozymes � �
Amyris �
Gevo � � �
Solazyme �
Industry Capabilities Landscape
Solazyme �
Abengoa � � �
Poet � � �BP
� � �1
� �Shell
2
� � � �
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• DuPont strongly positioned across key steps in
value chain
• DuPont provides unique integrated offerings
• Other participants range in breadth of offering
• Narrow / specialist players must partner to
access market
1. Enzymes limited to cellulosic ethanol
2. Participation primarily through partnerships
Industrial Biosciences
Key R&D Programs
Customer Benefits / Opportunities R&D Phase
Su
sta
ina
bili
ty
Pro
du
ctiv
ity
He
alt
h &
we
llne
ss
Fee
dst
ock
div
ers
ific
ati
on
Sa
fety
an
d
Re
gu
lato
ry
Pe
tro
leu
m/
che
mic
al
rep
lace
me
nt
1 2 3 4 5
Lau
nch
Bioactives
Feed enzyme system: Axtra® XAP � � �
Omega-3 � �
Cold water washing � � � �
Next generation feed enzyme � � � � �
Biosurfaces � �
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Biomaterials
Flame retardant fiber for carpet � � �
Bio-THF � � �
BioIsoprene™ � � � �
Biorefineries
Grain processing: Spezyme® RSL � � � �
Cellulosic ethanol � � � �
Biobutanol � � �
R&D Phases: 1-Discovery; 2-Concept validation; 3-Prototype;
4-Scale up; 5-Launch preparation
Bioactives
New Feed Enzyme SystemSpecifically designed to help US broiler producers meet the challenge of rising feed costs
• Lower feed costs
• Improved calorie conversion
• More uniform birds
DuPont science delivers radical feed cost savings
• More uniform birds
• Proven value in antibiotic growth
promoter free nutrition
• Demonstrated net feed costs
savings of at least $7 per ton (5%)
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Biomaterials
BioIsoprene™ monomer
• Provide significant raw material cost
savings vs. synthetic and natural
rubbers
• Enable cost-competitive replacement
of natural rubber of natural rubber
• Build platform to access multi-billion
dollar C5 chemical opportunity
• Partner to produce isoprene monomer
for Goodyear’s polyisoprene process
• Pilot plant construction target: 2012
13
Global Biofuels Market
Large and Growing Addressable Market
Production surpassed 28 B gallons in 2010
(3% of total road transport fuel)
More than 50 countries have enacted biofuel
targets/mandates -- expected to reach >45 B gallons by
2020, or >$100B market
Key drivers: energy independence; tech advancement
(“green” jobs); rural development; reduction of greenhouse
gases
Biofuel Demand by Type 2010-2050(Source: IEA 2010-11)
150
200
250
Ethanol – conventional (corn)
Ethanol – cane
Ethanol – cellulosic
Biodiesel – conventional
Biodiesel – advanced
gases
Industry Challenges for Meeting Demand
Economies of scale and existing infrastructure still favor
fossil fuels
Acceptance of technology risk and capital intensity required
for capacity build-out
Policy stabilization and consistency are critical. Change or
uncertainty discourages investment
B g
als
2010 2050204020302020
50
100
150
Biojet
Biomethane
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Cellulosic EthanolCommercialize lower-cost, lower-capital production technology for biofuels from non-food feedstocks
• Operating demonstration scale
facility in Vonore, TN. Generating
data for scale up
• 2011 field stover harvest confirmed
economics for biomass deliveryeconomics for biomass delivery
• Engineering and front-end loading
underway for Iowa site
• Deployment strategy includes
commercial operations, licensing
model and merchant enzymes
Market/Customers
Biofuel producers
Refinery operators
15
Major Biorefinery Program Updates
Grain Processing BiobutanolCellulosic Ethanol
Today
• Commercial business serving grain ethanol, sweeteners, and biochemicals industries
• Demo facility in TN proving out commercial economics
• 2011 field stover harvest confirmed economics for biomass delivery
• Commercial stover biorefinery site purchased in Iowa
• JV demo facility in UK complete
• Process units being commissioned for integrated operation
• Negotiations in progress for first commercial partnerships
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purchased in Iowa commercial partnerships
2012
– 2014
• Continuous productivity increases for cost and efficiency improvements
• Expanded enzyme offerings and processing technology
• Commercial production
• Multiple licensees for process technology
• Expanded value offerings
• First ethanol plant conversion
• Commercial production of biobutanol
• Multiple licensees of biobutanol technology
2015
– 2020• Development of integrated
bioprocessing refinery• Additional offerings and technology
extensions• Additional offerings and technology
extensions
Driving Profitable Growth
Continuous Improvement• Changing the way the host strain
grows, lowers broth viscosity
• Frees up fermenter capacity
• Avoids additional capital
investment
Trichoderma grows in long
filaments resulting in a
highly viscous broth
Cell mass limited to a
fragmented, lower viscosity
form
Productivity• Cost discipline
• Integration synergies
• Capacity Release
- Optimization of cell factories
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Industrial Biosciences
2012 and Long-term Priorities
• Deliver on Key Growth Opportunities
– Broaden portfolio through innovation and
application development
– Strong growth in developing markets
– Penetrate new market segments
– Launch new technologies for feedstock
processing
$0.7
10%
Sales and Margin Performance
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– Commercialize biofuels
• PTOI Margin
– Capture integration synergies
– Scale up biofuel technology licensing
– Drive cost and capital productivity 2011E
Sales ($B)* Pre Tax Margins (%)**
* Segment sales include transfers.
* * Excludes significant items. Refer to company website for detailed
reconciliations of non-GAAP measures.
Long-term growth targets: sales +10-12% CAGR with 15-17% margins