Corteva, Inc. · NYSE:CTVA
Corteva — Bank of America Merrill Lynch 2019 Global Agriculture & Chemicals Conference
37 slides from Corteva's conference presentation, Feb 28, 2019
Slide 1: Global Agriculture & Chemicals Conference
Bank of America Merrill Lynch Global Agriculture & Chemicals Conference Jim Collins, CEO February 28, 2019 Insert Risk Classification Agriculture Division of DowDuPont
Slide 2: Corteva Strategy
We provide farmers with the right mix of innovative seed, crop protection, and digital Corteva solutions to maximize yield and improve Strategy profitability, while strengthening customer relationships and ensuring an abundant food supply for a growing global population Agriculture Division of DowDu
Slide 3: Global Scale and Unique Routes to Market
Global Scale and Unique Routes to Market $14 Billion Net Sales* 20,000+ 130+ Colleagues Countries ~50% 140+ ~13,000 ~20% R&D Facilities Granted Patents ~10% ~20% Growers are able 100+ 65+ Production & Active to work with Mfg. Facilities Ingredients Corteva through HQ: Wilmington, DE Business Centers
Slide 4: Five Priorities for Shareholder Value Creation
01 Instill a strong culture Drive disciplined capital 02 allocation Develop innovative FIVE PRIORITIES 03 solutions for Shareholder Value Creation Attain best-in-class cost 04 structure Deliver above-market 05 growth Agriculture Division of DowDuPont 4
Slide 5: Market Driven Innovation
Market Driven Innovation Increase productivity and protect yield We innovate to Meet consumer demand/preferences bring differentiated solutions to our Proactively develop solutions with extended durability customers: Anticipate, collaborate and solve evolving regulatory or environmental conc
Slide 6: Leading Seed Position Across Largest Crops and Geographies
Leading Seed Position Across Largest Crops and Geographies 2018 Net Sales By Region 2018 Net Sales By Crop Corn NA Soy 2018 LA Sunflower Canola NET SALES EMEA Cotton AP $8B Other • Innovation in germplasm and traits Competitive • Global manufacturing footprint enables cost competitiveness Advantage
Slide 7: Technology advances sustain germplasm competitive advantage
Technology advances sustain germplasm competitive advantage CRISPR-CAS Building upon over 90 years of 2019 plant breeding leadership Biotech traits Genomic Merger 1996 prediction 2017 Marker assisted 2009 Managed selection for 1995 MERGER: drought traits analytics First commercial Expanded hybrid 19
Slide 8: Global Seed Product Development: Delivering Value To Our Customers
Global Seed Product Development: Delivering Value To Our Customers Four Foundational Pillars 1 2 3 4 Global Model Global Germplasm Innovation Drives Scale Local Characterization Superior Products & Productivity & Advancement Local Execution Delivers the right product to the right field Corteva Advan
Slide 9: Seed Product Performance from Recent Yield Trials
Seed Product Performance from Recent Yield Trials U.S. Soybean Yield U.S. Corn Yield Advantage Advantage in Bushels/Acre in Bushels/Acre Soybean Varieties Pioneer® A-Series Soybeans with Roundup 2018 Harvest Data from On-Farm Trials: Ready 2 Xtend® Technology vs. All All Pioneer vs. Competitor Bushe
Slide 10: New Seed Product Launches Add Value Now and into the Future
New Seed Product Launches Add Value Now and into the Future DELIVERING FOR TODAY INNOVATING FOR TOMORROW Products Launched New Product Pipeline New Product Sales $1.9B $1.4B $1.1B Next Generation Corn Rootworm Trait Technology 2018 2019E 2020E We expect to deliver more than $1.4B in new product sale
Slide 11: We are commercializing traits TODAY…
We are commercializing traits TODAY… Traits • The recent Qrome® product approval offers growers high yielding insect control options to drive productivity via top tier genetics. • Launch across the U.S. corn belt – expect $40 million of limited sales in NA in 2019. • Full commercial volumes will occ
Slide 12: And we have a strong pipeline for tomorrow.
And we have a strong pipeline for tomorrow. Traits • Powercore Ultra™ was launched in Latin America, contributing to sales in 2019. • PowerCore+Enlist available in North America and PowerCore Ultra+Enlist™ available in the Americas adds best-in- class weed control system by early 2020s • PowerCore t
Slide 13: Innovation – The Complete Solution
Innovation – The Complete Solution 2017 2018 2020 * Enlist E3TM soybeans are jointly developed by MS Technologies and Dow AgroSciences. Note: Launches pending regulatory approvals. Agriculture Division of DowDuPont 13
Slide 14: Strong Proof Point in Our Enlist Complete Solution
Strong Proof Point in Our Enlist Complete Solution Enlist traits targeting over ~$1B of peak sales Progress on Enlist Trait Launches Enlist E3™ Enlist cotton Enlist corn soybeans – launched in commercially 2019 launch and 2017 available in 2018 2020 ramp-up Stacked with Industry-Leading Traits New r
Slide 15: Strengthening Our Digital Offering to Meet Grower Needs
Strengthening Our Digital Offering to Meet Grower Needs U.S. CROP PRODUCTION LAND ACCESS ® ® New Product Directed scouting (spring 2019) Integrated agronomic and financial analysis (fall 2019) Shared Services Platform drives efficiencies Account Permissions Fields FieldOps Data Payments Records Inpu
Slide 16: Cross Platform Solutions
Cross Platform Solutions Leading capability to deliver advanced seed applied technologies to improve grower productivity Robust Portfolio of Offerings Customer- Continuous Innovative Disease Insect Protection Protection • Dermacor® Centric Innovation Assembly • LumisenaTM • LumidermTM Science • Lumi
Slide 17: Investment in Our Crop Protection Pipeline Driving Growth
Investment in Our Crop Protection Pipeline Driving Growth 2018 NET SALES $6.3B CP New Products Delivered By Region By Indication 8% Sales Growth in 2H18 +10%* +17%* $1.6B Fungicides $1.5B $1.4B $1.2B NA Herbicides LA Insecticides EMEA AP Other Q3 Q4 2017 2018 * Organic sales growth is defined as pri
Slide 18: New Crop Protection Products Adding Value Today and into the Future
New Crop Protection Products Adding Value Today and into the Future DELIVERING FOR TODAY INNOVATING FOR TOMORROW Products Launched New Product Pipeline New Product Sales SEED APPLIED TECHNOLOGY INSECT MGT. $1.0B DISEASE MGT. SOLUTIONS SOLUTIONS $0.6B $0.4B NEMATICIDE DISEASE MGT. SOLUTIONS HERBICIDE
Slide 19: Innovation on the Farm Addresses Today’s Needs
Innovation on the Farm Addresses Today’s Needs Crop Protection Crop Protection Innovation Puzzle Has Many Pieces Improved Natural Durability products regulatory profile Reduced drift Reduced use rates Many more Improved Mode of action environmental profile WE INNOVATE FOR SOLUTIONS. Agriculture Divi
Slide 20: Transitioning to a Differentiated Portfolio
Transitioning to a Differentiated Portfolio Driving a best-owner mindset & disciplined portfolio management focus Portfolio Cross Inorganic Rationalization Licensing Growth 2018 CP Sales 2022E CP Sales Patented Patented 14% 34% Off-Patent 86% Cost- advantaged 50% Differentiated 16% Note: Based on in
Slide 21: Innovating by Leveraging Discovery Across More Crops & Regions
Innovating by Leveraging Discovery Across More Crops & Regions Crop Protection Already a leading developer of natural product and natural-derived solutions Innovating three 3rd- generations of generation actives from one solution natural product 2019-2020 Expected 2023: Expanded to use New mode of a
Slide 22: Committed to Productivity: Driving Innovation through R&D
Committed to Productivity: Driving Innovation through R&D Optimizing our $1.2B annual R&D investment Reallocation From Graduation Rate Resource Reallocation Stopped R&D Projects # of R&D projects # of R&D projects $MM 41 graduated to stopped business platform 10 18 31 13 6 22 6 2 Last 12 Months Last
Slide 23: Corn Trait Pipeline
MARKET Est. Peak R&D PHASE MARKETS OPPORTUNITY Sales CORN TRAIT PIPELINE (●) PRIMARY (MM ACRES) 0 1 2 3 4 5 6 NA EMEA LA AP <50 50-100 >100 H/M/L KEY HIGHLIGHTED PRODUCT CONCEPTS Qrome® products ● H PowerCore® ULTRA ● M PowerCore® + Enlist™ (new) ● H PowerCore® ULTRA + Enlist™ (new) ● H Next Gen CRW
Slide 24: Soybean Trait Pipeline
MARKET Est. Peak R&D PHASE MARKETS (●) PRIMARY OPPORTUNITY Sales SOYBEAN TRAIT PIPELINE (MM ACRES) 0 1 2 3 4 5 6 NA EMEA LA AP <50 50-100 >100 H/M/L KEY HIGHLIGHTED PRODUCT CONCEPTS Enlist E3™ Soybean ● ● H Conkesta E3™ Soybean ● M Intacta RR2 PRO® Technology ● M NEXT GENERATION BIOTECH SOLUTIONS Pl
Slide 25: Complementary Crops Pipeline
MARKET Est. Peak MARKETS COMPLEMENTARY R & D PHASE (●) PRIMARY OPPORTUNITY (MM ACRES) Sales CROPS PIPELINE 0 1 2 3 4 5 6 NA EMEA LA AP <50 50-100 >100 H/M/L COTTON KEY HIGHLIGHTED PRODUCT CONCEPTS WideStrike® 3, Genuity® Roundup Ready® Flex ● L Enlist™ Cotton CANOLA KEY HIGHLIGHTED PRODUCT CONCEPTS
Slide 26: Agriculture Division of DowDuPont
1. R&D Phases 0 = Discovery, 1 = Proof of Concept, 2 = Pre Development, 3 = Development, 4 = Pre-Launch, 5=Launch, 6=Ramp Up 2. Estimated Peak Sales Range provided for projects Phase 3 or later in pipeline: L = $0-100 million, M = $100-500 million, H = $500 million+ Arrow indicates advancement or ad
Slide 27: Agriculture Division of DowDuPont
1. R&D Phases 0 = Discovery, 1 = Proof of Concept, 2 = Pre Development, 3 = Development, 4 = Pre-Launch, 5 = Launch, 6 = Ramp Up 2. Estimated Peak Sales Range provided for projects Phase 3 or later in pipeline: L = $0-100 million, M = $100-500 million, H = $500 million+ Arrow indicates advancement o
Slide 28: Delivering Shareholder Value = ROIC Improvement
Delivering Shareholder Value = ROIC Improvement #1 or #2 in every Innovative pipeline meaningful market Margin expansion Balanced portfolio Best team Growth Agriculture Division of DowDuPont 28
Slide 29: Jim Collins
James C. Collins, Jr. will be the chief executive officer of Corteva. He was previously chief operating officer for the Agriculture Division of DowDuPont. Prior to the DowDuPont merger, he was an executive vice president at DuPont responsible for the company’s Agriculture segment, including DuPont C
Slide 30: Greg Friedman
Greg Friedman will be executive vice president, chief financial officer, of Corteva Agriscience™. Prior to this appointment, Mr. Friedman served as the vice president, Investor Relations for DuPont and currently leads the finance organization for the Agriculture Division of DowDuPont. Mr. Friedman h
Slide 31: Rajan Gajaria, Executive Vice President
› Rajan joined Dow AgroSciences as a joint venture partner in Mumbai, India. He held various roles in sales & marketing, as well as human resources, before moving to the company’s global headquarters in Indianapolis, Indiana. He built his career through series of leadership roles in corporate strate
Slide 32: Tim Glenn, Executive Vice President
› Tim Glenn serves as a member of the Executive Leadership Team and is Executive Vice President, Chief Commercial Officer of Corteva Agriscience™, Agriculture Division of DowDuPont. › Based in Johnston, Iowa, Glenn leads the global commercial organization, which has six commercial regions – Asia Pac
Slide 33: Appendix
Appendix Insert Risk Classification Agriculture Division of DowDuPont 33
Slide 34: Safe Harbor Regarding Forward-Looking Statements
Safe Harbor Regarding Forward-Looking Statements Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1
Slide 35: A Reminder About Non-GAAP Statements
A Reminder About Non-GAAP Statements These risks are and will be more fully discussed in the current, quarterly and annual reports and preliminary registration statement on Form 10 filed with the U. S. Securities and Exchange Commission by DowDuPont or the Company, as applicable. While the list of f
Slide 36: Important Notices
Important Notices DO NOT APPLY DICAMBA HERBICIDE IN-CROP TO SOYBEANS WITH Roundup Ready 2 Xtend® technology unless you use a dicamba herbicide Herculex® Insect Protection technology by Dow AgroSciences and Pioneer Hi-Bred. Herculex® and the HX logo are registered trademarks of Dow AgroSciences produ
Slide 37: Agriculture Division of DowDuPont
Agriculture Division of DowDuPont 37
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