DuPont Agriculture Executive Outlines 2017 Growth Strategy
Robust R&D Pipeline Projected to Deliver Innovative Grower Solutions
FT. LAUDERDALE, Fla., March 1, 2017 – DuPont Executive Vice President James C. Collins discussed priorities for the company’s agriculture business segment today at the Bank of America Merrill Lynch 2017 Global Agriculture and Chemicals Conference, including plans to deliver new genetics, biotech traits and crop protection products.
“As demand for grain and other food products continues to increase, the most urgent challenge for growers is to improve crop productivity on every acre,” Collins said. “As a result of our ongoing strategic investments in agriculture research, DuPont has the tools to help growers produce more crops on each acre, which drives value for our customers and our shareholders.
“Addressing these challenges creates attractive long-term growth opportunities for DuPont,” Collins said. “In 2017, we are focused on achieving our financial commitments, and driving rapid and successful technology launches.”
Pipeline Delivers Near- and Long-Term Solutions
Collins presented an update of the agriculture research pipeline for DuPont, including a 2017 limited commercial introduction of Pioneer® brand Qrome™ products1. He also highlighted launches of Pioneer® brand A-Series soybeans and DuPont™ Vessarya™ disease control, as well as regional expansions of Pioneer® brand hybrids with Leptra® insect protection and DuPont™ Zorvec™ fungicide.
“Our new corn hybrids and soybean varieties are delivering outstanding performance, demonstrating the benefits of the focused investments we have made in recent years,” said Collins. “We have created one of the most extensive germplasm libraries in the world and continue to advance our expertise by encompassing marker-assisted selection, trait integration, and the latest in targeted breeding techniques.”
Qrome™ products unlock more of the full performance potential of Pioneer’s elite corn germplasm. These high-yielding Qrome™ products feature an advanced, proprietary molecular stack trait technology to provide yield protection against above- and below-ground pests. In multi-year testing, Qrome™ products consistently delivered 4-7 bushels per acre yield improvement over legacy technologies.1
In Brazil, Leptra® insect protection offers broad-spectrum above-ground insect control. The initial launch of Leptra® insect protection in the 2016/2017 Brazil summer season was one of the fastest technology ramp ups in Pioneer history; Pioneer will continue its expansion of Leptra® by launching the product in Argentina this year.
Collins said he expects Pioneer to continue as a market leader in soybeans with the launch of the new A-Series soybeans, Pioneer’s highest yielding line of soybean varieties ever. In 2017, Pioneer is offering 54 new A-Series varieties, including 30 new varieties of Pioneer® brand soybeans with Roundup Ready 2 Xtend® technology. In 2016 on-farm Pioneer trials, A-Series varieties produced an average yield advantage of 2.3 bu/acre against 10,000 comparisons of elite competitors at 400 locations.2
Collins discussed DuPont™ Zorvec™ disease control, which delivers consistent and longer control of oomycete diseases such as late blight and downy mildew for growers of potatoes, grapes and vegetables. First sales of Zorvec™ disease control products were in 2016, and are now sold in more than 10 countries, including China. Additional countries in Asia Pacific and Latin America are expected to launch in 2017.
Another fungicide that is launching in Brazil this year, DuPont™ Vessarya™, combines two leading fungicides to provide protection against Asian soybean rust. Testing has shown Vessarya™ fungicide provided superior performing control of Asian soybean rust, with highest average yield compared to competitive treatments.3
Collins also highlighted DuPont’s research for insect control. DuPont™ Pyraxalt™ insecticide, which has been specifically developed to protect rice crops in Asia, is nearing launch with first sales expected in 2018. With novel activity for control of a wide spectrum of hopper insects in rice, Pyraxalt™ insecticide is expected to set a new standard for high potency, low use rate with a favorable environmental profile.
To view a full copy of today’s presentation, visit the “Events & Presentations” page on the DuPont Investor Center.
DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders, we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit www.dupont.com.
# # #
This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words.
Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. Forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company’s control. Some of the important factors that could cause the company’s actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting products based on biotechnology and, in general, for products for the agriculture industry; outcome of significant litigation and environmental matters, including realization of associated indemnification assets, if any; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, natural disasters and weather events and patterns which could affect demand as well as availability of products for the agriculture industry; ability to protect and enforce the company’s intellectual property rights; successful integration of acquired businesses and separation of underperforming or non-strategic assets or businesses; and risks related to the agreement entered on December 11, 2015, with The Dow Chemical Company pursuant to which the companies have agreed to effect an all-stock merger of equals, including the completion of the proposed transaction on anticipated terms and timing, the ability to fully and timely realize the expected benefits of the proposed transaction and risks related to the intended business separations contemplated to occur after the completion of the proposed transaction. Important risk factors relating to the proposed transaction and intended business separations include, but are not limited to, (i) the completion of the proposed transaction on anticipated terms and timing, including obtaining regulatory approvals, anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of the new combined company’s operations and other conditions to the completion of the merger, (ii) the ability of Dow and DuPont to integrate the business successfully and to achieve anticipated synergies, risks and costs and pursuit and/or implementation of the potential separations, including anticipated timing, any changes to the configuration of businesses included in the potential separation if implemented, (iii) the intended separation of the agriculture, material science and specialty products businesses of the combined company post-mergers in one or more tax efficient transactions on anticipated terms and timing, including a number of conditions which could delay, prevent or otherwise adversely affect the proposed transactions, including possible issues or delays in obtaining required regulatory approvals or clearances, disruptions in the financial markets or other potential barriers, (iv) potential litigation relating to the proposed transaction that could be instituted against Dow, DuPont or their respective directors, (v) the risk that disruptions from the proposed transaction will harm Dow’s or DuPont’s business, including current plans and operations, (vi) the ability of Dow or DuPont to retain and hire key personnel, (vii) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the merger, (viii) uncertainty as to the long-term value of DowDuPont common stock, (ix) continued availability of capital and financing and rating agency actions, (x) legislative, regulatory and economic developments, (xi) potential business uncertainty, including changes to existing business relationships, during the pendency of the merger that could affect Dow’s and/or DuPont’s financial performance, (xii) certain restrictions during the pendency of the merger that may impact Dow’s or DuPont’s ability to pursue certain business opportunities or strategic transactions and (xiii) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, as well as management’s response to any of the aforementioned factors. These risks, as well as other risks associated with the proposed merger, are more fully discussed in the joint proxy statement/prospectus included in the registration statement on Form S-4 declared effective by the SEC on June 9, 2016 (File No. 333-209869), as last amended, (the “Registration Statement”) in connection with the proposed merger. While the list of factors presented here is, and the list of factors presented in the Registration Statement are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Dow’s or DuPont’s consolidated financial condition, results of operations, credit rating or liquidity. Neither Dow nor DuPont assumes any obligation to publicly provide revisions or updates to any forward-looking statements regarding the proposed transaction and intended business separations, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. The company undertakes no duty to publicly revise or update any forward-looking statements as a result of future developments, or new information or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
1 2011–2015 DuPont Pioneer research trials.
Qrome™ products are approved for cultivation in the United States and Canada and also have received import approval in a number of importing countries. DuPont Pioneer continues to pursue additional import approvals for Qrome™ products, including in China, in accordance with Excellence Through Stewardship Product Launch Guidance.
Agrisure® is a registered trademark of, and used under license from, a Syngenta Group Company.
Agrisure® technology incorporated into these seeds is commercialized under a license from Syngenta Crop Protection AG. Herculex® XTRA insect protection technology by Dow AgroSciences and Pioneer Hi-Bred. Herculex® and the HX logo are registered trademarks of Dow AgroSciences LLC. 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 trademarks of Bayer.
2 Data is based on average of 2016 comparisons made across all major soybean growing areas of the United States through Nov. 29, 2016. Comparisons are against all competitors in Pioneer IMPACT™ plots unless otherwise stated, and within +/-03 RM of the competitive brand. Product responses are variable and subject to any number of environmental, disease and pest pressures. Individual results may vary. Multi-year and multi-location data are a better predictor of future performance. DO NOT USE THIS OR ANY OTHER DATA FROM A LIMITED NUMBER OF TRIALS AS A SIGNIFICANT FACTOR IN PRODUCT SELECTION.
DO NOT APPLY DICAMBA HERBICIDE IN-CROP TO SOYBEANS WITH Roundup Ready 2 Xtend® technology unless you use a dicamba herbicide product that is specifically labeled for that use in the location where you intend to make the application. IT IS A VIOLATION OF FEDERAL AND STATE LAW TO MAKE AN IN-CROP APPLICATION OF ANY DICAMBA HERBICIDE PRODUCT ON SOYBEANS WITH Roundup Ready 2 Xtend® technology, OR ANY OTHER PESTICIDE APPLICATION, UNLESS THE PRODUCT LABELING SPECIFICALLY AUTHORIZES THE USE. Contact the U.S. EPA and your state pesticide regulatory agency with any questions about the approval status of dicamba herbicide products for in-crop use with soybeans with Roundup Ready 2 Xtend® technology.
ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Soybeans with Roundup Ready 2 Xtend® technology contain genes that confer tolerance to glyphosate and dicamba. Glyphosate herbicides will kill crops that are not tolerant to glyphosate. Dicamba will kill crops that are not tolerant to dicamba.
Roundup Ready 2 Xtend® is a trademark of Monsanto Technology LLC used under license.
3 In trials conducted by Embrapa, (a group of Independent Soy fungicide experts across Brazil) in the 2015/2016 season DuPont’s Vessarya™, on average over 30 different locations, was the best performing product for the control of Asian soybean rust with highest average yield of the 18 competitive treatments tested.
DuPont™ Pyraxalt™ is not registered for use or sale in the United States and other countries. No offer for sale, sale or use of these products is permitted prior to the issuance of the country level registration.
DuPont™ Zorvec™ is not registered for use or sale in the United States. No offer for sale, sale or use of these products is permitted prior to the issuance of the country level registration.
The DuPont Oval logo, DuPont™ and all products, unless otherwise noted, denoted with ™, ℠ or ® are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates.