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Products: DowDuPont Inc. (DWDP)

Industrial Intermediates(Industrial Intermediates)
Agriculture(Agriculture)
Performance Materials and Coatings(Performance Materials and Coatings)
Packaging and Specialty Plastics(Packaging and Specialty Plastics)
Electronics and Imaging(Electronics and Imaging)
Transportation and Advanced Polymers(Transportation and Advanced Polymers)
Nutrition and Biosciences(Nutrition and Biosciences)
Safety and Construction(Safety and Construction)

Industrial Intermediates

What is being offered?

DowDuPont's Industrial Intermediates and Infrastructure segment includes functional materials that consists of a portfolio of products which find application in pharmaceuticals, personal care, and industrial specialty industries.

Who is buying?

Key customers for the Industrial Intermediates & Infrastructure are industry based, since mass consumers do not have a direct use for these products. Some key industrial consumers include:

1. Consumer and Institutional Goods

2. Healthcare Industry

3. Pharmaceutical Industry

Competitors:

Key competitors include companies that also manufacture such products, such as BASF, Nan Ya, Bayer, AkzoNobel, Altana, Valspar, and Huntsman.

What buyers care about:

1. Price

2. Superior performance

Industrial Intermediates Revenues

This refers to revenues generated from functional materials that consists of a portfolio of products which find application in pharmaceuticals, personal care, and industrial specialty industries.

Industrial Intermediates Revenue have declined from $13.7 billion in 2015 to 12.6 billion in 2017.

Chart: Industrial Intermediates Revenues

Agriculture

What is being offered?

DowDuPont's agriculture science products division offers a wide variety of agricultural chemicals such as herbicides, insecticides, and fungicides to farmers. Also included in this division's sales are genetically modified (GM) seeds/traits for corn, soybean, and cotton crops which are designed to provide higher yields and higher pest control for farmers and growers. DuPont Pioneer, the flagship brand of seeds markets and sells hybrid seed corn in nearly 70 countries worldwide. Also included in this category are sunflower seeds, canola, sorghum, and rice.

Who is buying?

The key customers for seeds and pesticides are farmers who rely on these products to improve their crop yields and reduce infestation.

Competitors:

Key competitors to the division include other genetically modified (GM) based seed/trait companies, such as Monsanto and Syngenta.

The pesticide and crop protection business faces competition from crop control divisions of companies such as Bayer and BASF.

What buyers care about:

1. Price

2. Higher crop yields (for seeds)

3. Food safety and improved health

Top selling points:

1. Enlist weed control system, developed by Dow, which is targeted at helping farmers mitigate the impact of 'superweeds' on their crops.

3. DuPont Pioneer brand is a world leader in improving crop yields especially in the US corn and soybean market. It offers high-value products, such as Optimum AcreMax, which provides superior insect protection for crops.

4. Distribution strategy: The agricultural science division deals directly with farmers and growers for the seeds and pesticides business, unlike Monsanto which uses farm retailers (intermediaries). This provides a significant cost advantage.

Agriculture Revenues

This refers to the annual revenues of DowDuPont’s Agriculture division. The revenues are generated from wide variety of agricultural chemicals such as herbicides, insecticides, and fungicides for farmers. Also included in this division's sales are genetically modified (GM) seeds/traits for corn, soybean, and cotton crop.

Agriculture Revenues have grown from $6.3 billion in 2015 to $14.3 billion in 2017, reflecting the impact of merger, and restructuring.

Chart: Agriculture Revenues

Performance Materials and Coatings

What is being offered?

DowDuPont's Performance Materials and Coating segment includes products such as, amines, chlorinated organics, automotive systems, and epoxy, among others. The segment also includes products, such as, adhesives and sealants, construction materials, cellulosic-based construction additives, raw materials for architectural paints and industrial coatings, and technologies used for water purification.

Who is buying?

Key customers for the Performance Materials & Coatings are industry based, since mass consumers do not have a direct use for these products. Some key industrial consumers include:

1. Consumer and Institutional Goods

2. Food Packaging

3. Healthcare Industry

4. Utilities

5. Transportation

6. Construction

7. Automotive

8. Pharmaceutical Industry

9. Photolithography

10. Paper and Plastics Industry

11. Packaging Industry

Competitors:

Key competitors include companies that also manufacture high-performance plastics/materials such as BASF, Nan Ya, Bayer, AkzoNobel, Altana, Valspar, and Huntsman.

What buyers care about:

1. Price

2. Superior performance specific to each product, for instance, better adhesion, higher strength, higher resistance to temperature, high thermal resistance for an automotive-based film and other attributes that are relevant to each product.

Top selling points:

1. Cost advantage from extensive vertical integration into feedstock manufacturing. DowDuPont is one of the largest producer of ethylene worldwide, which is used as the primary building block for almost all plastic products.

2. DowDuPont's broad global footprint and extensive scale of operations in the chemistry and polymers market, not only mitigates risks arising from regional factors, but also allows the company to tap into emerging market growth effectively.

3. Full service supplier with global technical service network and locally delivered solutions.

4. DowDuPont's various long-standing brands which have a wide variety of applications and continue to be the preferred choice for some segments.

Performance Materials and Coatings Revenues

This refers to revenues generated from products, such as, amines, chlorinated organics, automative systems, epoxy, among others. Adhesives and sealants, construction materials, cellulosic-based construction additives, raw materials for architectural paints and industrial coatings, and technologies used for water purification also contribute to the segment revenues.

Performance Materials & Coatings Revenue has increased from $4.5 billion in 2015 to $8.7 billion in 2017.

Chart: Performance Materials and Coatings Revenues

Packaging and Specialty Plastics

What is being offered?

DowDuPont's Packaging and Specialty Plastics segment includes elastomers, polyethylene, and other products used in the electrical, telecommunication, and packaging industry. The segment also includes Performance polymers, which delivers a broad range of polymer-based high performance materials, that includes elastomers and thermoplastic and thermo-set engineering polymers. Some key brands include Surlyn ionomer resins, Bynel coextrudable adhesive resins, and SentryGlas. These products serve a variety of markets ranging from agriculture, consumer goods, and construction markets, to industrial materials, automotive, and transportation markets.

Who is buying?

Key customers for the Packaging & Specialty Plastics are industry based, since mass consumers do not have a direct use for these products. Some key industrial consumers include:

1. Consumer and Institutional Goods

2. Food Packaging

3. Healthcare Industry

4. Utilities

5. Transportation

6. Construction

7. Automotive

8. Pharmaceutical Industry

9. Photolithography

10. Paper and Plastics Industry

11. Packaging Industry

Competitors:

Key competitors include companies that also manufacture high-performance plastics/materials such as BASF, Nan Ya, Bayer, AkzoNobel, Altana, Valspar, and Huntsman.

What buyers care about:

1. Price

2. Superior performance specific to each product, for instance, better adhesion, higher strength, higher resistance to temperature, high thermal resistance for an automotive-based film and other attributes that are relevant to each product.

Top selling points:

1. Cost advantage from extensive vertical integration into feedstock manufacturing. DowDuPont is one of the largest producer of ethylene worldwide, which is used as the primary building block for almost all plastic products.

2. DowDuPont's broad global footprint and extensive scale of operations in the chemistry and polymers market, not only mitigates risks arising from regional factors, but also allows the company to tap into emerging market growth effectively.

3. Full service supplier with global technical service network and locally delivered solutions.

4. DowDuPont's various long-standing brands which have a wide variety of applications and continue to be the preferred choice for some segments.

Packaging and Specialty Plastics Revenues

This includes revenues from elastomers, polyethylene, and other products used in the electrical, telecommunication, and packaging industry. The revenues also includes Performance polymers, which delivers a broad range of polymer-based high performance materials, that includes elastomers and thermoplastic and thermo-set engineering polymers.

Packaging & Specialty Plastics Revenues have increased from $18.4 billion in 2015 to $22.4 billion in 2017.

Chart: Packaging and Specialty Plastics Revenues

Electronics and Imaging

What is being offered?

DowDuPont's Electronic & Imaging business offers high-performance materials designed for specific use in the electronic industry. Electronic materials are primarily used in the production of electronic displays, fabrication of printed circuit boards, and integrated metallization processes. The product portfolio is wide and includes materials such as:

a) Electronic inks designed for digital textile printing and printer OEM's (Original Equipment Manufacturers)

b) Polyimide films used as insulation

c) Laminates for use in printed circuit boards

d) Photo-voltaic modules for solar energy generation

e) Materials used in manufacturing display panels.

Who is buying?

Electronics and Imaging division provides business-to-business (B2B) based products, that are sold to various industries within the global electronics market. Some key industries which use these products are: solar panel manufacturers, flat panel display (Laptops and Plasma TV) manufacturers, transportation industry and consumer electronics companies.

Competitors:

Key competitors include other globally based chemical companies such as BASF, Bayer, 3M, Air Products, Freudenberg, Honeywell, Asahi Chemicals, and Hitachi Chemicals. Also included are companies that specialize in electronic-based chemicals and materials such as Cabot Microelectronics and LG Chemicals.

What buyers care about:

1. Price

2. Superior performance

3. Higher efficiency

4. Innovative products/solutions (depends on product). For instance, for the electronics market, OLED (Organic Light Emitting Diode) display technologies.

Top selling points

The Electronics and Imaging division is a leading supplier of materials used in the photovoltaic industry, which is expected to show high growth, as demand for renewable energy sources increases.

Electronics and Imaging Revenues

This refers to revenues generated from materials such as, electronic inks designed for digital textile printing and printer OEM's (Original Equipment Manufacturers), polyimide films used as insulation, laminates for use in printed circuit boards, photo-voltaic modules for solar energy generation, and materials used in manufacturing display panels.

Electronic & Imaging Revenue has increased from $2 billion in 2015 to $4.8 billion in 2017, reflecting the impact of restructuring.

Chart: Electronics and Imaging Revenues

Transportation and Advanced Polymers

What is being offered?

DowDuPont's Transportation and Advanced Polymers segment provides material solutions with high-performance engineering resins, adhesives, lubricants and parts for the transportation, electronics and medical industries. Key brands are Zytel, Hytrel, Kalrez, Molykote, BetaSeal, and Vespel.

Who is buying?

Key customers for the Transportation & Advance Polymer are industry based, since mass consumers do not have a direct use for these products. Some key industrial consumers include:

1. Pharmaceuticals2. Healthcare3. Transportation4. Electronics

Competitors:

Key competitors include other globally based chemical companies such as BASF, Bayer, 3M, Air Products, Freudenberg, Honeywell, Asahi Chemicals, and Hitachi Chemicals. Also included are companies that specialize in electronic-based chemicals and materials such as Cabot Microelectronics and LG Chemicals.

What buyers care about:

1. Price

2. Superior performance (depends on product).

3. Higher efficiency

4. Innovative products/solutions (depends on product).

Transportation and Advanced Polymers Revenues

This refers to revenues generated from engineering resins, adhesives, lubricants and other parts for the transportation, electronics and medical industries. Key brands are Zytel, Hytrel, Kalrez, Molykote, BetaSeal, and Vespel.

Transportation & Advance Polymer Revenue have grown from $6.6 billion in 2015 to over $5 billion in 2017.

Chart: Transportation and Advanced Polymers Revenues

Nutrition and Biosciences

What is being offered?

DowDuPont's Nutrition/Health products is a product line that includes soy-based food ingredients and food processing chemicals. The company sells probiotics and cultures, specialty proteins, systems and texturants and excipients. Popular brands include Danisco, Howaru, Methocel. and Avicel.

Industrial BioSciences primarily focuses on new product development to assess and build commercial viability of other businesses through biotechnology and engineering solutions including enzymes, biomaterials, biocides, and antimicrobial solutions, and process technology.

Who is buying?

The main buyers of these products are companies in the food and beverage industry. For example, some soy-based proteins produced are used as an ingredient/additive in nutrition bars and beverages.

Looking at Biosciences, currently, customers are restricted to products which have been commercialized such as Bio-PDO. Since Bio-PDO can be formulated into various industrial products, customers include a wide variety of industrial buyers such as construction, transportation, and personal care companies.

Competitors:

Key competitors include other globally based chemical companies such as BASF, Bayer, 3M, Air Products, Freudenberg, Honeywell, Asahi Chemicals, and Hitachi Chemicals. Also included are companies that specialize in electronic-based chemicals and materials such as Cabot Microelectronics and LG Chemicals.

What buyers care about:

1. Price

2. Superior performance (depends on product). For instance, nutritional value for health and nutrition products, and other attributes that are relevant to each product.

3. Higher efficiency

4. Innovative products/solutions (depends on product).

Nutrition and Biosciences Revenues

This refers to revenues generated by the company's Nutrition & Biosciences business. Nutrition products is a product line that includes soy based food ingredients and food processing chemicals. The company sells probiotics and cultures, specialty proteins, systems and texturants and excipients. Popular brands include, Danisco, Howaru, Methocel, and Avicel.

Nutrition & Biosciences Revenue has increased from $1 billion in 2015 to $6 billion in 2017, reflecting the impact of merger and restructuring.

Chart: Nutrition and Biosciences Revenues

Safety and Construction

What is being offered?

DowDuPont's Safety and Construction primarily includes supply of safety and protection materials globally. The key products include: Kevlar aramid fiber for ballistic and cut protection, Tyvek for general industrial protection, and Nomex flame resistant fiber for fire dangers.

Who is buying?

Due to the wide scope of applications, the safety and construction segment supplies its products to a vast array of industries. Key customers include, the construction industry and the military and law enforcement.

Competitors:

Key competitors include other globally based chemical companies such as BASF, Bayer, 3M, Air Products, Freudenberg, Honeywell, Asahi Chemicals, and Hitachi Chemicals. Also included are companies that specialize in electronic-based chemicals and materials such as Cabot Microelectronics and LG Chemicals.

What buyers care about:

1. Price

2. Superior performance (depends on product). For instance, better adhesion, higher strength, higher resistance to temperature, nutritional value for health and nutrition products, and other attributes that are relevant to each product.

3. Higher efficiency

4. Innovative products/solutions (depends on product).

Top selling points:

1. DowDuPont's primary life protection products - Kevlar and Nomex - have a high brand recognition. They are mainly used for manufacturing body armor designed for military and law enforcement personnel.

Safety and Construction Revenues

This refers to revenues generated primarily from supply of safety and protection materials globally. The key products include: Kevlar aramid fiber for ballistic and cut protection, Tyvek for general industrial protection, and Nomex flame resistant fiber for fire dangers.

Safety & Construction Revenue have increased from around $2 billion in 2015 to over $5 billion in 2017 reflecting the impact of restructuring.

Chart: Safety and Construction Revenues