Exhibit 1: 5-year Financial Summary

Income Statement 1971 1970 1969 1968 1967

Sales 3,848 3,618 3,632 3,455 3,079
Net income 357 334 356 372 314
Cash flow from operations 727 684 677 659 583
EPS 7.33 6.86 7.62 7.99 6.73
DPS 5.00 5.00 5.25 5.50 5.00
Average shares outstanding ( 47,281 47,257 47,076 46,285 46,158

Balance
sheet 1971 1970 1969 1968 1967
Net working capital 1,221 1,100 1,107 996 874
Net property plant and equip 2,002 1,923 1,803 1,738 1,724
Total assets 3,999 3,740 3,453 3,289 3,071
Total debt 307 216 186 162 125
Shareholders equity 3,095 2,964 2,854 2,697 2,557
Total capital 3,402 3,180 3,040 2,859 2,682

Book value per share (based o 65.46 62.72 60.63 58.27 55.40
Book value per share (given) 60.20 57.67 55.53 53.09 50.22
Market value per share 143.75 113.38 133.38 162.75 163.25

Capital sources
Cash flow retained 480 438 423 394 308
External equity financing (net) 21 37 35 23 19
Debt financing (net) 91 30 24 37 67
Total capital added 592 505 482 454 394

Capital expenditure 454 471 391 332 454

Key financial ratios 1971 1970 1969 1968 1967

Growth-rate
Sales 6.4 (0.4) 5.1 12.2 (2.5)
Profit 6.9 (6.2) (4.3) 18.5 (19.3)
Return on sales (%) 9.3 9.2 9.8 10.8 10.2
Return on equity (%) 11.53 11.27 12.47 13.79 12.28
Debt to total capital (%) 9.02 6.79 6.12 5.67 4.66
P/E multiple 19.61 16.53 17.50 20.37 24.26
MV/BV 2.39 1.97 2.40 3.07 3.25
 Exhibit 2: Market Shares and Plant Capacities
Domestic Production Capacity
1972 Est. 1971 1970
Capacity Capacity Capacity
(000 t) % (000 t) % (000 t) %
1 DuPont 325 27 277 25 252 29
2 NL Industries 230 19 268 24 268 31
3 Americans Cyanamid 90 7 82 7 90 10
4 SCM 75 6 78 7 78 9
5 Gulf & Western 70 6 70 6 70 8
6 Kerr-McGee 45 4 39 4 37 4
7 Sherwin Williams 25 2 27 2 27 3
8 PPG - - 18 2
Total US firms 860 70 841 76 840 96
Imports -
Total 860 70 841 76 840 96

Exhibit 3: Production by Firm and Type (1970)

Total
productio Sulfate Chloride
n process process
DuPont 211 43 168
NL Industri 229 193 36
Americans 56 47 9
SCM 51 48 3
Gulf & Wes 33 33 -
Kerr-McGe 35 - 35
Sherwin Wi 19 - 19
PPG 10 - 10

Total 644 364 280

Exhibit 4: TiO2 Market Forecasts under Alternative Startegies for Du Pont, 1973-85

Year Growth Strategy Maintain Strategy

Cost of Pre-tax Average
new operating gross Average
Size of capacity expenses selling DuPont DuPont gross DuPont
market ($ per ($ per price ($ Market Capacity selling Market
(tons 000) ton) ton) per ton) Share (tons 000) price Share (%)
1972 325
1973 752 900 330 540 35 350 555 35
1974 774 927 390 640 40 375 665 40
1975 798 955 460 750 47 400 760 45
1976 822 983 540 880 47 421 890 45
1977 846 1013 580 950 51 443 955 45
1978 872 1043 620 1010 52 475 1015 45
1979 898 1075 660 1070 52 505 1070 45
1980 925 1107 690 1130 55 530 1120 45
1981 952 1140 710 1190 58 552 1170 45
1982 981 1174 740 1250 59 579 1210 45
1983 1010 1210 770 1310 61 616 1270 45
1984 1041 1246 810 1370 62 645 1320 45
1985 1072 1283 850 1430 64 685 1370 45
Domestic Shipment (000 tonnes) Domestic Shipment (000 tonnes)
1972 Est. 1971 1970 1972 Est. 1971
Shipment Shipment Shipment (000 Shipment Shipment
(000 t) % (000 t) % t) % $ millions % $ millions
220 30 222 31 206 30 100 29 98
180 25 209 30 210 31 95 28 102
80 11 72 10 53 8 40 12 30
65 9 64 9 58 9 25 7 26
60 8 26 4 30 4 30 9 11
45 6 37 5 31 5 20 6 12
30 4 26 4 21 3 10 3 12
- 10 1 9 1- 4
680 93 666 94 618 91 320 94 295
50 7 41 6 58 9 20 6 15
730 100 707 100 676 100 340 100 310

tax rate 0.48

Growth strategy

DuPont vol
Capacity sales(000
(tons 000) tons) dollar sales op. expense gross profit PAT capex net WC
325 100000000
340 263.2 142128000 86856000 55272000 28741440 22500000 8425600
350 309.6 198144000 120744000 77400000 40248000 23175000 11203200
360 375.06 281295000 172527600 108767400 56559048 23875000 16630200
370 386.34 339979200 208623600 131355600 68304912 20643000 11736840
381 431.46 409887000 250246800 159640200 83012904 22286000 13981560
392 453.44 457974400 281132800 176841600 91957632 33376000 9617480
404 466.96 499647200 308193600 191453600 99555872 32250000 8334560
416 508.75 574887500 351037500 223850000 1.16E+08 27675000 15048060
428 552.16 657070400 392033600 265036800 1.38E+08 25080000 16436580
441 578.79 723487500 428304600 295182900 1.53E+08 31698000 13283420
455 616.1 807091000 474397000 332694000 1.73E+08 44770000 16720700
468 645.42 884225400 522790200 361435200 1.88E+08 36134000 15426880
482 686.08 981094400 583168000 397926400 2.07E+08 51320000 19373800
1971 1970
Shipment $
% millions %
32 100 31
33 112 34
10 24 7
8 27 8
4 13 4
4 16 5
4 8 2
1 4 1
95 304 94
5 21 6
100 325 100

tax
credit(10
% of vol sales(000
Capex) cash flow NPV tons) dollar sales gross profit
 100000000
2250000 65840 263.2 146076000 59220000
2317500 8187300 309.6 205884000 85140000
2387500 18441348 359.1 272916000 107730000
2064300 37989372 369.9 329211000 129465000
2228600 48973944 380.7 363568500 142762500
3337600 52301752 392.4 398286000 154998000
3225000 62196312 404.1 432387000 165681000
2767500 76446440 416.25 466200000 178987500
2508000 98810556 428.4 501228000 197064000
3169800 111683488 441.45 534154500 207481500
4477000 115987180 454.5 577215000 227250000
3613400 139998824 468.45 618354000 238909500
5132000 141359928 482.4 660888000 250848000
maintain strategy

PAT capex net WC tax credit cash flow NPV

30794400 13500000 9215200 1350000 9429200
44272800 9270000 11961600 927000 23968200
56019600 9550000 13406400 955000 34018200
67321800 9830000 11259000 983000 47215800
74236500 11143000 6871500 1114300 57336300
80598960 11473000 6943500 1147300 63329760
86154120 12900000 6820200 1290000 67723920
93073500 13284000 6762600 1328400 74355300
1.02E+08 13680000 7005600 1368000 83155680
1.08E+08 15262000 6585300 1526200 87569280
1.18E+08 16940000 8612100 1694000 94311900
1.24E+08 16198000 8227800 1619800 101426940
1.3E+08 17962000 8506800 1796200 105768360