Event Brief of Q3 2003 DuPont Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

CORPORATE PARTICIPANTS

. Ann Gualtieri, DuPont, VP Investor Relations . Gary Pfeiffer, DuPont, CFO

OVERVIEW

DD reports EPS $0.13, vs. $0.40 YoverY. Decline mainly due to high energy, raw material, freight costs and pension and stock option expenses. Very challenging quarter, adverse economic conditions. For anticipated separation of Invista, non cash impairment charge of $987m. Maintain earlier outlook of approx $1.60 EPS for FY03. Q&A focus: business segments, Invista, tax rates.

FINANCIAL DATA

A. Key Data From Call 1. EPS = $0.13 2. Depreciation = $1.036b

3. Amortization = $61m 4. Accounts receivable = $6.1b 5. Inventories = $4.5b 6. Total net working capital = $6.5b 7. Debt net of cash = $8.3b

PRESENTATION SUMMARY

S1. Overview (A.G.) 1. Q3 EPS $0.13 per share before special items, vs. $0.40 per share YoverY 2. Higher energy costs and non cash pension and stock option expense created $0.30 headwind for quarter

3. Positive side: strong topline growth despite difficult environment, worldwide sales up 12%, volume growth in Asia Pacific 4. Acquisitions net divestitures added $200m to topline 1. $0.01 positive EPS impact

5. Full year base income tax rate 24.5% (July estimate was 27.5%)

-- catchup adjustment benefited EPS by $0.05

S2. Financials (G.P.) 1. Q3 EPS $0.13 per share before special items, vs. $0.40 per share YoverY 2. Very challenging quarter, adverse economic conditions 3. Components of $0.27 per share decline: 1. Variable costs, high energy, raw material, freight costs --

negative $0.20 2. Pension and stock option expenses -- negative $0.10 3. Other fixed costs up 1% -- negative $0.03 4. Income taxes -- negative $0.06 5. Local prices -- negative $0.03 6. Reduced EPS by $0.42 7. Offset by: 8. Higher volumes added $0.06 9. Other income and lower exchange losses $0.05 10. Portfolio changes, minority interests, $0.03 11. Special items netted $1.01 loss: 12. $0.02 gain from insurance proceeds 13. Gain $0.01 from favorable arbitration ruling -- Merck agreements, royalties in Japan 4. Anticipated separation of Invista, non cash impairment charge $987m 1. impairment charges totaling $1.04 EPS loss

2. Invista charge taken now -- DD only now met all six requirements to reclassify assets as assets held for sale 5. Income statement:

1. Global segment sales up 12% 2. Sales variances 1. 3Q global volumes up 12% 2. 1% US 3. 9% South America

4. 14% Asia Pacific 5. flat in Europe 3. Local prices declined 1%, lower prices in US, flat prices internationally

4. 3% benefit from currency, primarily euro/dollar 6. Other income (ex special items) up $25m YoverY 7. Cost of goods sold 76% of sales, vs. 70% YoverY -- higher energy, material, freight costs, pension

8. SG&A as percent of sales flat vs. prior year 9. YTD depreciation $1.036b 1. Full year depreciation to be $1.4b 10. Amortization $61m, up $7m vs. prior year 1. YTD amortization 178m, up 16%

2. Full year amortization to be $270m 11. Invista assets and liabilities to be collapsed to two new line items 1. Assets held for sale no longer depreciated or amortized 2. Impact on earnings depends on turn of inventories -- not fully modeled 3. Estimate benefit of $0.04-0.06 12. R&D up 6% QoverQ and 9% YTD 1. YTD R&D $1.012b 2. 2003 outlook R&D $1.350b 13. Interest expense $90m, up 14% YoverY 14. Income tax rate negative 13.4%, vs. 1% prior year 1. Est. full year effective tax rate 24.5%, vs. 27.5% prior

quarter 15. GAAP requires company calculate YTD tax provision based on full year rate 16. 3 point reduction created catchup effect of $50m ($0.05 per share) 17. Capex (ex acquisitions) $603m -- refinancing of assets under synthetic leases 1. Capex same as prior year 18. Working capital (incl Invista) 1. Accounts receivable $6.1b 2. Inventories $4.5b 3. Total net working capital $6.5b, up $3b YTD 4. Normal seasonal working capital builds in production agriculture business 19. YTD DSOs improved 2 days (ex Pioneer) 20. Debt net of cash $8.3b, up $1b from prior quarter 21. Completed tender offer for remaining shares of Dupont Canada -- value $1.1b, paid in two stages 22. Refinanced synthetic lease and accounts receivable securitizations -- approx $700m

S3. Segments (A.G.) 1. The ag and nutrition platform drove double-digit revenue growth on higher volumes, higher local prices and currency benefits 2. Seasonal losses larger than prior year 3. Pioneer revenues declined slightly 4. Largely offset by strong performance in South America 5. Fixed costs up on higher R&D and pension expense 6. Sharp increase in soybean prices increased costs of goods sold 7. Crop protection revenues increased on higher volumes across all

regions, favorable currency and flat local pricing 8. Sales showed significant growth, particularly in Asia Pacific 9. Nutrition and health revenues showed double-digit gains, even excluding portfolio changes 10. YoverY results in Soleil have benefited from higher volumes and favorable mix in the soy isolates business 11. Qualcon sales growing briskly 12. 4Q ag and nutrition platform outlook: 1. expect the strong South American season to continue for both Pioneer and crop protection 13. Coatings and color platform 1. Decline in platform earnings primarily due to product and geographic mix in performance coatings 2. Total volumes down …