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DELIVERING SOLUTIONS. DELIVERING GROWTH. Paul Schickler President, Pioneer Hi-Bred A DuPont Business September 15, 2011

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Page 1: Cs sept 15 final 16

DELIVERING SOLUTIONS. DELIVERING GROWTH.

Paul Schickler President, Pioneer Hi-BredA DuPont Business

September 15, 2011

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The attached charts include company information that does not conform to generally accepted accounting principles (GAAP). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the company and 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 previously published company reports on Form 10-K, 10-Q and 8-K. These reports along with reconciliations of non-GAAP measures to GAAP results are available on the Investor Center website at www.dupont.com.

Forward Looking StatementsDuring the course of this presentation 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 “plans,” “expects,” “will,” "believes," “intends,” and “estimates.” Although they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of risks, uncertainties, and assumptions. Some of those risk factors include: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; global economic and capital markets conditions; litigation and environmental matters; changes in laws and regulations or political conditions; and business or supply disruptions. The Company does not undertake to update any forward-looking statements as a result of future developments or new information.

Developing MarketsTotal developing markets is comprised of Developing Asia, Developing Europe, Middle East & Africa, and Latin America. A detailed list of all developing countries is available on the Earnings News Release link on the Investor Center website at www.dupont.com.

Regulation G

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DUPONT FINANCIAL HIGHLIGHTS

* Excludes significant items. Refer to company website for detailed reconciliations of non-GAAP measures.

2010 Sales

2010 EPS*

$31.5B +21%$27.4 $29.4 $30.5

$26.1$31.5

2006 2007 2008 2009 2010

2010 Dividend

$2.88 $3.28$2.78

$2.03

$3.28

2006 2007 2008 2009 2010

$ in

Billi

ons

$3.28 +62%

$ pe

r sha

re$1.48 $1.52 $1.64 $1.64 $1.64

2006 2007 2008 2009 2010

$ pe

r sha

re

$1.5B

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We are applying our science to find solutions to some really BIG challenges…

FOOD ENERGY PROTECTION

FEEDING THE WORLD

REDUCING OUR DEPENDENCE ON

FOSSIL FUELS

KEEPING PEOPLE & THE ENVIRONMENT

SAFE

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© 2011 E.I. du Pont de Nemours and Company. All Rights Reserved.

DUPONT CRITICAL SUCCESS FACTORS

DIFFERENTIATED portfolio management

Growth from INNOVATION driven by megatrends

PRODUCTIVITY that out-performs peers

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INNOVATION: INVESTMENT IN MEGATRENDS2010 DuPont Pro Forma R&D ~$1.8B

15%

11%

9%

5%

60%

Decreasing Dependence on Fossil Fuels

Protecting People and the Environment

Chemicals and Materials

Electronics

Increasing Food Production

Chemistry

Engineering

Materials Science

Nanotechnology

Industrial Biotech

Ag Biotech

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U.S. FarmIncome

World Stock-to-Use Ratios

CommoditiesFood Production Goals

PRODUCTION AGRICULTURE GROWTH DRIVERS

70%Production Increase

to meet demand by 2050

Prices Elevated/Volatile small supply/demand changes

equate to large impacts

Multiple Crop Ratios Flat to Down ’09 –’10

rebuild likely a multi-year process

2011 Income AboveHistoric Levels

strong 2012 income outlook

7Sources: Various industry projections. These are not specific estimates from Pioneer Hi-Bred. ©2011 PHII.

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The World Growth 1990-2011 Impact on World Grains and Oilseeds

FOUNDATION FOR LONG TERM AGRICULTURE GROWTH

Population +34% [1.7%/yr]

Income +68% [3%/yr]

Crude Oil Consumption +30% [2%/yr]

Meat Consumption +60% [3%/yr]

Grains & Oilseeds +37% [2%/yr]

Grains & Oilseeds Area:+11% [0.5%/yr]9%

12%

15%

18%

21%

24%

27%

30%

33%

1,200

1,400

1,600

1,800

2,000

2,200

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

ProductionTotal useStocks / Use (Right Axis)

Source: USDA 8

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Historic Soybean Yield ProgressHistoric Corn Yield Progress

HISTORIC CROP PROGRESS

9

137

142

147

152

157

162

167

May Jun Jul Aug Sep Oct Nov FINAL

2006 2007 2008

2009 2010 2011

Bu/Acre

38

39

40

41

42

43

44

45

46

May Jun Jul Aug Sep Oct NovFINAL

2006 2007 20082009 2010 2011

Bu/Acre

Source: USDA

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SoybeansCorn

USDA’s ENDING STOCKS AND AVERAGE CROP PRICEMulti-Year Process to Rebuild Key Crop Stocks and Moderate Commodities

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2006 2007 2008 2009 2010 May '11 Jun '11 Jul '11 Aug '11 Sept '11

Stocks (Left Axis)Farm Price (Right Axis)

Mil Bushels $/BU

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 May '11 Jun'11 Jul'11 Aug'11 Sept '11

Stocks (Left Axis)Farm Price (Right Axis)

$/BU Mil Bushels

10Source: USDA WASDE

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RECENT HISTORY of U.S. CROP ACREAGECommodity Prices Are Economic Driver Deciding Acreage Distribution

2007USDA

2008USDA

2009USDA

2010USDA

2011USDA Est

Corn 93.5 86.0 86.5 88.2 92.3Soybeans 64.7 75.7 77.5 77.7 75.2Wheat 60.5 63.2 59.2 53.6 56.4Upland cotton 10.5 9.3 9.0 10.8 13.4Rice 2.8 3.0 3.1 3.6 2.78 other crops 22.1 22.8 19.5 18.0 17.0Total 254.1 260.0 254.9 251.9 257.0

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SEED BUSINESS – GROWTH MODEL Growth, Productivity and Targeted Investment

Balanced Growth

• North America corn & soybean growth

• International seed expansion

• Extensions tonew crops

Margin Expansion

• World classroute-to-market

• Production productivity

• Leverage technology into new crops

• Leverage global support services

Investing for Sustainable Growth

• Biotechnology and breeding

• Right Product Right Acre capabilities

• Global infrastructure

12©2011 PHII.

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North America• #1 in Corn • #1 in Soybean• Growing Canola

SEED BUSINESS Growing the Global Business

Europe• #1 in Corn• Oilseed Rape &Sunflower Opportunity

Latin America• Brazil Corn Price &Technology Leader

• Brazil SoybeanMomentum

• Argentina Resurgence

Asia• Leading China Corn Position

• Growing India &ASEAN

Global Infrastructure To ServeAdvantaged route-to-market strategy

and robust, global supply chain

Strong Breeding & Biotech Capability

Using global breeding advancements, native traits & biotech trait optimizing local

solutions

Delivering Global Growth TODAY2011 Sales growth contribution split

evenly between International and North America Regions

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2011 Sales Growth Drivers

SEED BUSINESS Winning Strategy and Execution Continues to Deliver Industry Leading Results

2007 2008 2009 2010 2011E

CornSoybeanOther

Global Seed Sales* ($B)CAGR 2007–2010:

N.A. volume and value growth

Europe price gains and volume growth on expansion of biogas segment & oilseed

L.A. volume, Brazil price gains reflecting leading technology

Asia volume

Currency

N.A. 4Q 2010 strong comp

+

+

+

+

+

14Segment sales include transfers

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2007 2010

Latin America Seed Sales

SEED BUSINESS - LATIN AMERICA Strong Market Position Delivered Growth; Strong Outlook

2011 Growth Drivers• Corn & soybean volume gains

• Ag fundamentals, acreage • 2nd brand expansion continues

• Technology adoption • Bt and weed control traits

2010 Accomplishments

• High teens sales growth• Value and currency gains• Growth in corn and soybean• Lower Brazil corn hectares

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SEED BUSINESS - BRAZIL CORN Continued Leadership in Value and Bt Penetration

Pioneer Sales: Bt PenetrationSummer season % trait distribution of sales

Strong Product Line-up

• >85% Bt product penetration in 2010 summer season sales

• Providing leading technology choices to farmers

• 2011 Continued strong HX1 performance and conversion

• Germplasm + native gene + Biotech trait approach

HX1 = Herculex® I insect protection by Dow AgroSciences and Pioneer Hi-Bred. ® Herculex and the HX logo are registered trademarks of Dow AgroSciences LLC. Also change Yieldgard footnote to: ® YieldGard and the YieldGard Corn Borer design are registered trademarks used under license from Monsanto Company

96%

40%

16%9%

4%

43%

14%

3%

17%

70%

86%

2%

0

10

20

30

40

50

60

70

80

90

100

2008 2009 2010 2011E

Base YG Hx1 "Double"

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©2011 PHII.N.A. Seed Business 2011 Success is Clear

SEED BUSINESS – NORTH AMERICARight Product Right Acre – A Clear Differentiator

1717

Mid-Single Digit Net Price Increases

Share Gain in 3 Crops

InnovativeTechnology

Local Product Advancements

Advantaged Route-to-

Market

©2011 PHII.

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N.A. Corn 2011 Sales Drivers

SEED BUSINESS - CORNNorth America Corn Business Growth Drivers

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Optimum® AcreMax® 1 Launch 1st corn rootworm refuge solution

in-the-baglaunched on almost 4 million acres

PROaccess℠ Business Unit StrategyAlternative distribution systemsConverting to Pioneer genetics

Providing growers choices

Pioneer® Brand Concentration of Newest Hybrid Classes 2011 performance strong

including AQUAmax™ drought

Company estimates ©2011 PHII.

N.A. Demonstrated Success

-25%

0%

25%

50%

75%

Corn Market Share%

mar

ket s

hare

2008 2009 2010 2011

30%35%

(Pioneer N.A. Corn Market share Pioneer® brand & PROaccessSM)*

32%36%

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Far West• Drought

• Brittle Snap• Head Smut• Goss’s Wilt

SEED BUSINESS - CORNLeading Breeding Capabilities Enables Right Product Right Acre

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RPRA Differentiates Pioneer

Breeding Hybrids Locally to Solve Our Growers Issues

IMPACTTM Trials Supports Local Product Advancement Targeted Drought

• Drought• Fusarium

• Stress Emergence• Brittle Snap

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2020

OPTIMUM® ACREMAX® INSECT PROTECTION FAMILY Suite of Integrated Refuge Reduction Products: Choice, Convenience, Yield

Integrated Single-bag Refuge for

Above Ground Insect Management

First and Only Refuge In-the-bag for Corn Rootworm Insect Management

Integrated Single-bag Refuge for Above and Below Ground Insect

Management

Launched in 2011 on Almost

4 Million Acres2012 Introduction 2012 Introduction

Herculex® Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. ® Herculex and the HX logo are registered trademarks of Dow AgroSciences LLC. Ignite®, LibertyLinkand the Water Droplet Design are trademarks of Bayer. ® YieldGard, the YieldGard Corn Borer design, and Roundup Ready are registered trademarks used under license from Monsanto Company. LibertyLink ® and the Water Droplet Design are registered trademarks of Bayer. ©2011 PHII.

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OPTIMUM® ACREMAX®

Powerful 2011 Launch with Momentum Moving Into 2012

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Herculex® Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. ® Herculex and the HX logo are registered trademarks of Dow AgroSciences LLC. Ignite®, LibertyLink and the Water Droplet Design are trademarks of Bayer. ® YieldGard, the YieldGard Corn Borer design, and Roundup Ready are registered trademarks used under license from Monsanto Company. ©2011 PHII.

2012 Ramp Up Plans

-25%

0%

25%

50%

75%

2011 2012

Optimum® AcreMax® 1 and XTRA conversion of Herculex Xtra

Optimum® AcreMax®

5-10% Conversion of Herculex® 1 Insect Protection in 2012

Optimum® AcreMax® PenetrationPremium products on introduction

trusted by farmers

Optimum® AcreMax® 1 and XTRA~65% Conversion of Herculex® XTRA

Insect Protection in 2012

Focused on Fast “Triple” Conversion

65%

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* Company estimates ©2011 PHII.

N.A. Soybean 2011 Sales Drivers

SEED BUSINESS - SOYBEANNorth America Soybean Business Continues Momentum

Strong Service OfferingSeed treatments, PRObulk® system,

agronomy support, financing, insurance

Varieties Developed LOCALLY Leading genetics with agronomics

and disease packages using AYT™ breeding techniques

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N.A. Demonstrated Success

-25%

0%

25%

50%

75%

Soybean Market Share%

mar

ket s

hare

2008 2009 2010 2011

(Pioneer NA Soybean Market SharePioneer® brand & PROaccess®)*

26%23%32% 36%

PROaccess℠ Business Unit StrategyAlternative distribution systemsConverting to Pioneer genetics

Providing growers choices

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SEED BUSINESS – SOYBEAN Local Issues Drive Our Local Product Development & Advancement

NORTH & NORTHWEST

• Iron Chlorosis• Phytophthora• Cyst Nematode• White Mold

SOUTHWEST• Drought• Cyst Nematode• Sudden Death

Syndrome

WEST• Phytophthora• Iron Chlorosis• Cyst Nematode• Sudden Death

Syndrome SOUTHEAST• Cyst Nematode• Phytophthora• Root Knot

Nematode• Stem Canker• Frogeye Leafspot• Sudden Death

Syndrome

EAST & NORTHEAST• Phytophthora• Cyst Nematode• White Mold

CENTRAL• Brown Stem Rot• Phytophthora• Cyst Nematode• Sudden Death

Syndrome• White Mold

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LEADING PIPELINE OF INNOVATIONS IN SOYBEANBuilding a Stream of Innovation

24Y series contains Roundup Ready® technology. Roundup Ready® is registered trademarks of Monsanto Company. Plenish™ is a registered trademarks of Pioneer Hi-Bred. Plenish and dual mode herbicide products are not yet available for sale or use. Products, benefits and concepts described are subject to full regulatory approval. ©2011 PHII.

Y Series Soybeans

Plenish TM

High Oleic Soy

Pioneer Soybeans with Next Generation Herbicide Solutions

Pioneer Soybeans with Insect Protection

Germplasmadvancements Including disease resistance produced using AYT™ System

Plenish™ High Oleic Soybeans offering same industry leading yield with improved content

2012 Intro /Multi Yr Penetration

New Innovative Varieties Every Year

2nd Half of Decade /Offering Growers Choice

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Achieve Global Growth

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• 2012 seed sales growth underpinned by volume growth and net price gains

• Drive Right Product Right Acre differentiator

• New hybrids including ramp up of AQUAmax™ drought

• Full supply supporting RPRA

• Momentum with AcreMax® Family

• Extend seed lead in international markets

• Continue investing for product and technology innovation

• Deliver key pipeline advancements

* Excludes significant items. Refer to company website for detailed reconciliations of non-GAAP measures.

SEED BUSINESS 2012 PRIORITIESExecute 2012 In Line With The Long Term Plan

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AGRICULTURE & NUTRITION (Ex-Danisco)Sales Growth 8-10% CAGR (2010-2015E)

* Segment sales include transfers. ** Excludes significant items. Refer to company website for detailed reconciliations of non-GAAP measures. ©2011 PHII.

Key Growth Opportunities

PTOI Margin Expansion

• North America corn seed• North America soybean & other

crops• International seed• Crop protection products pipeline• Food & nutrition products

• Margin target 19-21%• Gross margin expansion• G&A leverage• Continued investments:

• Selling expense constant % of sales• Increase rate of R&D investment

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