United states securities and exchange commission

2016 Versus 2015

Nutrition & Biosciences net sales were $975 million in 2016, down from $1,029 million in 2015. Net sales decreased 5 percent compared with 2015, with local price and product mix down 3 percent and volume down 2 percent. Local price declined in Industrial Biosciences across all geographic regions due to weakness in the energy sector, primarily in U.S. & Canada. Local price was also down in Nutrition & Health across all geographic regions, except Latin America. Volume was flat in Industrial Biosciences and down in Nutrition & Health. Nutrition & Health volume declined due to customer de-stocking of cellulosics used in pharmaceutical applications, primarily in U.S. & Canada, and from the shutdown of a cellulosics facility in Institute, West Virginia, in the fourth quarter of 2015.

Operating EBITDA was $141 million in 2016, compared with $130 million in 2015. Operating EBITDA increased in 2016 as lower operating expenses, lower R&D and SG&A spending, and higher equity earnings more than offset the impact of lower selling prices.

55

Table of Contents
Nutrition & Biosciences Outlook for 2018

Nutrition & Biosciences' 2018 Operating EBITDA is expected to increase notably, as compared with 2017 pro forma Operating EBITDA driven by a favorable portfolio impact of the acquisition of the H&N Business, volume growth, lower pension/OPEB costs, the favorable impacts of cost synergies and higher local prices. The Company anticipates a continued competitive market environment with lower food ingredient demand in select US markets, some global price pressure originating from cost focused customers, growth in the pharmaceutical global oral solid dosage excipient market, and expects the enzymes market to grow on pace with gross domestic product (“GDP”). Additionally, the Company expects higher oil prices to continue, driving higher demand of microbial control products, and continued high growth in the apparel markets.

TRANSPORTATION & ADVANCED POLYMERS

Transportation & Advanced Polymers provides high-performance engineering resins, adhesives, lubricants and parts to engineers and designers in the transportation, electronics, medical, industrial and consumer end-markets to enable systems solutions for demanding applications and environments. The segment delivers a broad range of polymer-based high-performance materials in its product portfolio, including elastomers and thermoplastic and thermoset engineering polymers which are used by customers to fabricate components for mechanical, chemical and electrical systems. In addition, the segment produces innovative and differentiated adhesive technologies to meet customer specifications for durability, crash performance, and healthcare applications. Transportation & Advanced Polymers also targets the performance plastics and fluid solutions markets by developing technologies that differentiate customers’ products with improved performance characteristics.

Transportation & Advanced Polymers
In millions	2017			2016			2015
Net sales	$	2,521		$	897		$	583
Pro forma net sales	$	5,131		$	4,497
Operating EBITDA				$	287		$	156
Pro forma Operating EBITDA	$	1,319		$	1,045
Equity earnings (losses)	$	(1	)	$	8		$	20

Transportation & Advanced Polymers
Percentage change from prior year	2017		2016		2015
Change in Net Sales from Prior Period due to:
Local price & product mix	—	%	(1	)%	—	%
Currency	—		(1	)	(7	)
Volume	6		7		5
Portfolio & other	175		49		—
Total	181	%	54	%	(2	)%
Change in Pro Forma Net Sales from Prior Period due to:
Local price & product mix	2	%
Currency	—
Volume	7
Portfolio & other	5
Total	14	%

2017 Versus 2016

Transportation & Advanced Polymers net sales were $2,521 million in 2017, up from $897 million in 2016. Pro forma net sales were $5,131 million in 2017, up from $4,497 million in 2016. Pro forma net sales growth of 14  percent, with gains across all geographies, was led by increased volume of 7 percent , a favorable impact from portfolio actions of 5 percent and a 2 percent increase in local price. Broad based volume growth was driven by increased demand for polymers in automotive, electronics and industrial markets leading to growth from KALREZ® and VESPEL® high-performance parts. Volume growth was led by Asia Pacific followed by EMEA, U.S. & Canada and Latin America. The increase in local price was driven by price gains in polymers in automotive markets. The favorable impact from portfolio actions relates to the addition of Dow Corning's silicones business in June 2016.

Pro forma Operating EBITDA was $1,319 million in 2017, up 26 percent from $1,045 million in 2016. The increase in Operating EBITDA was driven by increased volume growth, the favorable impact of earnings from Dow Corning's silicones business, higher local selling prices, cost savings and lower pension/OPEB costs, partially offset by higher raw material costs.
56


Table of Contents
2016 Versus 2015

Transportation & Advanced Polymers net sales in 2016 were $897 million, up from $583 million in 2015. Net sales increased 54 percent from 2015, primarily due to a 49 percent increase in portfolio and other, reflecting the favorable impact of the addition of Dow Corning's silicones business. Volume increased 7 percent and local price and product mix and currency both decreased 1 percent. Volume increased across all geographic regions, particularly in Asia Pacific, led by strong demand for structural and elastic adhesives used in automotive applications. Local price and product mix declined across all geographic regions in response to lower raw material costs. Currency had an unfavorable impact to sales, driven by EMEA.

Operating EBITDA in 2016 was $287 million, up from $156 million in 2015. Operating EBITDA increased as the favorable impact from the Dow Corning silicones business, lower feedstock, energy and other raw material costs and higher sales volume more than offset lower selling prices.
Transportation & Advanced Polymers Outlook for 2018

Transportation & Advanced Polymers' 2018 Operating EBITDA is expected to increase meaningfully as compared with 2017 pro forma Operating EBITDA, driven by lower pension/OPEB costs, the favorable impacts of cost synergies, improved volumes and an increase in local price, partially offset by a negative impact from portfolio actions. It is anticipated that global automotive production, according to IHS, will continue to grow at 2 percent along with modest growth in the semiconductor and medical markets. The portfolio impact relates to the expected sale of DuPont Teijin Films, subject to regulatory approval.

SAFETY & CONSTRUCTION

The Safety & Construction segment is a leading provider of engineered products and integrated systems for a number of industries including construction, worker safety, energy, oil and gas, transportation, medical devices and water purification and separation. The segment satisfies the growing global needs of businesses, governments, and consumers for solutions that make life safer, healthier, and better. By uniting market-driven science with the strength of highly regarded brands, the segment strives to bring new products and solutions to solve customers' needs faster, better and more cost effectively. The segment is a leader in safety consulting, selling training products as well as consulting services, to improve the safety, productivity, and sustainability of organizations across a range of industries.

Safety & Construction
In millions	2017			2016			2015
Net sales	$	3,006		$	1,877		$	1,938
Pro forma net sales	$	5,142		$	4,984
Operating EBITDA				$	415		$	400
Pro forma Operating EBITDA	$	1,190		$	1,130
Equity earnings	$	2		$	1		$	1

Safety & Construction
Percentage change from prior year	2017		2016		2015
Change in Net Sales from Prior Period due to:
Local price & product mix	—	%	(1	)%	—	%
Currency	—		—		(5	)
Volume	3		(2	)	2
Portfolio & other	57		—		—
Total	60	%	(3	)%	(3	)%
Change in Pro Forma Net Sales from Prior Period due to:
Local price & product mix	(1	)%
Currency	—
Volume	4
Portfolio & other	—
Total	3	%

2017 Versus 2016

Safety & Construction net sales were $3,006 million in 2017, up from $1,877 million in the 2016. Pro forma net sales were $5,142 million in 2017, up 3 percent from $4,984 million in 2016. Pro forma net sales growth was led by volume gains of 4 percent , slightly offset by a 1 percent decline in local price. Continued demand from industrial markets contributed to gains in NOMEX®

57


Table of Contents
thermal-resistant garments, KEVLAR® high-strength materials and water filtration. Growth in TYVEK® protective materials reflected increased demand in industrial markets, construction and medical packaging. Declines in local price and product mix, primarily in aramids, were partially offset by pricing gains in building solutions. Regionally, volume gains were driven by Asia Pacific and EMEA followed by U.S. & Canada and Latin America. Drivers included TYVEK® for graphics and house wrap in EMEA, and gains from KEVLAR® in Asia Pacific.
Pro forma Operating EBITDA was $1,190 million in 2017, up 5 percent from $1,130 million in 2016. Pro forma Operating EBITDA increased as volume growth, lower pension/OPEB costs and cost savings were partially offset by the impact of lower local selling price and higher raw material costs.