Summary of DuPont's Investor Day 2025 Company Overview - **Company**: DuPont - **Event**: Investor Day 2025 - **Key Themes**: Transformation, innovation, and acceleration [1][2] Financial and Strategic Highlights - **Pro Forma Basis**: Presentation based on the new DuPont after the spin-off of Delrin and divestiture of the Aramids business [2] - **New Reporting Segments**: Focus on healthcare, water technologies, and diversified industrials [2] - **Timeline**: Spin-off expected on November 1, 2025, and divestiture completion in Q1 2026 [2] Key Messages from Leadership 1. **Transformation Execution**: Focus on portfolio and operational transformation to reduce complexity and cyclicality [7] 2. **Excellence Focus**: Codifying innovation excellence and operational excellence into a comprehensive business system [8] 3. **Growth Acceleration**: Half of the businesses positioned in markets growing above GDP, with continued investment in these areas [8] 4. **Capital Allocation**: Disciplined model to deliver strong returns for shareholders [9] 5. **Cultural Enhancement**: Building a culture focused on growth and continuous improvement [9] Financial Performance and Projections - **Revenue Growth**: Divestiture of the Aramids business expected to increase revenue growth by 50 basis points and margin by 90 basis points [10] - **Long-term Targets**: Projecting 3-4% organic growth CAGR, margin expansion of 150-200 basis points by 2028, and EPS growth of 8-10% [25][26] Business Segments Healthcare and Water Technologies - **Sales Contribution**: Healthcare and water technologies each represent about 25% of sales [13] - **Market Position**: Leading position in medical devices, biopharma, and water filtration [34][42] - **Growth Drivers**: Aging population, chronic diseases, and increasing demand for clean water [38][46] - **Expected EBITDA Margin**: Approximately 30% for the Healthcare and Water segment [34] Diversified Industrials - **Sales Contribution**: Represents about 50% of DuPont's portfolio [14] - **Market Leadership**: Strong presence in construction, automotive, aerospace, and industrial sectors [55] - **Sales and Margin**: $3.6 billion business with a 22% operating margin [55] - **Growth Opportunities**: Focus on energy efficiency, sustainability, and innovation in product offerings [62][63] Innovation and R&D - **Investment Focus**: Emphasis on innovation to drive growth, with a vitality index of 30% [16] - **New Product Sales**: 40% growth and 60% renew, with plans to shift towards more growth [16] - **Customer Collaboration**: Strong partnerships with leading medical device and biopharma companies [41] Market Opportunities - **Addressable Market**: Combined addressable market of over $40 billion [14] - **Sustainability Trends**: Increasing focus on sustainability and regulatory requirements driving growth in water technologies [46][48] Conclusion - **Commitment to Excellence**: DuPont aims to enhance shareholder value through disciplined capital decisions and consistent delivery of growth and margin expansion [26][27] - **Future Outlook**: Positioned to lead in innovation and sustainability, with a strong focus on operational excellence and customer collaboration [69][70]

Core Viewpoint - The global business environment is facing significant challenges, leading to a slowdown in economic growth and a shift in strategies for Chinese companies expanding overseas [4][5]. Group 1: Economic Context - The World Bank's report indicates that global economic growth is expected to be the slowest since 2008, with 70% of economies having their growth forecasts downgraded [4]. - The economic downturn presents challenges for companies looking to expand internationally, as traditional strategies based on scale may no longer be effective [5]. Group 2: Challenges for Chinese Companies - Chinese companies venturing abroad are encountering escalating difficulties, including compliance issues, expansion challenges, profitability concerns, brand recognition, and organizational development [5][6]. - The competition for Chinese companies will shift from market capture and price competition to organizational building and talent acquisition [6]. Group 3: Case Study - Ningji - Ningji, a tea beverage company, has faced significant hurdles in its international expansion, having opened only 15 stores in the U.S. after a year and a half, compared to 3,000 stores domestically in four years [7]. - The company experienced delays in regulatory approvals, such as advertising sign permits, which took nearly four months to secure [11]. - Ningji's strategy has evolved to focus on understanding local markets and building a diverse talent pool, rather than solely targeting Chinese communities abroad [8][9]. Group 4: Organizational Insights - The founder of Ningji emphasizes the importance of hands-on involvement in overseas operations to understand local challenges and adapt strategies accordingly [14][15]. - The company aims to create a management system similar to Danaher, focusing on organizational capability and talent diversity as key components of its global strategy [44][46]. - Ningji's approach to hiring prioritizes individuals who understand both Chinese culture and the U.S. market, reflecting a need for a balanced team [47][48]. Group 5: Market Observations - The U.S. tea market is characterized as a developing market, with significant opportunities for growth despite the perception of it being a developed market [17][32]. - Ningji's strategy includes adapting its product offerings to local tastes and gradually building brand recognition through community engagement [25][27]. - The company is also exploring markets in Southeast Asia and Australia, focusing on local consumer preferences while leveraging its brand [27][30].