Corteva, Inc. · NYSE:CTVA
Corteva — Q4 2024 Earnings Presentation
36 slides from Corteva's earnings presentation, Feb 6, 2025
Slide 1: 4Q 2024 Earnings Conference Call
4Q 2024 Earnings Conference Call February 6, 2025
Slide 2: Safe Harbor Regarding Forward-Looking Statements
Safe Harbor Regarding Forward-Looking Statements Forward-Looking Statements This presentation contains certain estimates and forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, whi
Slide 3: Safe Harbor: Regulation G (Non-GAAP Financial Measures)
Safe Harbor Regarding Forward-Looking Statements Regulation G (Non-GAAP Financial Measures) This presentation includes information that does not conform to U.S. GAAP and are considered non-GAAP measures. These measures may include organic sales, organic growth (including by segment and region), oper
Slide 4: CEO Messages
CEO Messages In-Line Achieved 20% Operating EBITDA margin(1) for the first time FY 2024 FY 2024 Free Cash Flow(1) of $1.7B, 50% FCF / EBITDA conversion(1) Performance Returned ~$1.5B to shareholders in 2024 via dividends and share repurchases Strong Record-setting global consumption of corn,
Slide 5: 2024 / 2025 Key Themes
2024 / 2025 Key Themes 2024 Performance 2025 Expectations Mixed Ag fundamentals Improving Ag fundamentals Seed share gains in key crops and markets More corn acres in North America Continued market challenges in Crop Protection Earnings improvement led by growth platforms Meaningful ro
Slide 6: 2025 – 2027 Scorecard for Success
2025 – 2027 Scorecard for Success Growth from ~$1B 2025-2027 Incremental Continued EBITDA Margin1 Expansion Proprietary Net Sales from Technology Growth Platforms 23-25% 20.0% Focus on Cost ~$1B 18.5% Cost Deflation and and Productivity Productivity Benefits 14.4% Commercial 100 bps+ Average EBITDA
Slide 7: 2024 Financial Performance
2024 Financial Performance Metric 4Q 2024(1) FY 2024(1) 2024 Highlights Seed pricing gains in most regions, competitive Brazil market Net Sales $4.0B $16.9B +7% -2% Crop Protection volume growth led by Latin America Seed price and mix gains and expected increase in Safrinha area Organic Sales (2) $4
Slide 8: FY 2024 Operating EBITDA
FY 2024 Operating EBITDA(1) FY 2024 Bridge Key Drivers ($ in millions) Seed pricing gains across the portfolio to capture value for technology, offset by Crop Protection competitive pressures Volume gains in Brazil Seed and Crop Protection offset lower $3,381 $55 ($86) $51 $3,376 global corn are
Slide 9: FY 2025 Guidance Key Metrics
FY 2025 Guidance(1) Key Metrics Operating Operating EBITDA Operating EPS(2) Free Cash Flow / EBITDA(2) Margin(2) EBITDA Conversion(2) $3.6 – $3.8B 100 – 150 bps $2.70 - $2.95 +10% at mid-point Improvement +10% at mid-point 40 – 45% Organic growth Benefits from cost driven by Seed EBITDA(2) growth an
Slide 10: FY 2025 Operating EBITDA
FY 2025 Operating EBITDA(1) FY 2025 Bridge Key Drivers LSD pricing gains in Seed to capture value for technology, driven by ($ in millions) new hybrids and varieties Crop Protection volume stabilizes, gains driven by new products $3,600 - $3,800 and biologicals $3,376 ~$50M improvement in Seed
Slide 11: Key Sensitivities – FY 2025 Guidance
Key Sensitivities – FY 2025 Guidance(1) LSD Revenue Growth Operating EBITDA(2) $3.6 – $3.8B Downside Case Upside Case Stronger U.S. Dollar Weaker U.S. Dollar Lower Brazil / Argentina corn planted area More North America / Latin America corn acres Lower Crop Protection market growth Stron
Slide 12: Key Takeaways
Key Takeaways In-Line 4Q 2024 Performance, Led by Growth in Crop Protection Seed Delivered FY 2024 Sales and EBITDA on Strength of Portfolio Strong 2024 Free Cash Flow Driven by Working Capital FY 2025 Guidance Supports 2025 – 2027 Financial Framework Focus on Operational Execution and Continued Inv
Slide 13: Appendix
Appendix
Slide 14: 4Q 2024 Highlights
4Q 2024 Highlights ($ in millions, except EPS) 4Q 2023 4Q 2024 Change Net Sales $3,707 $3,978 +7% GAAP Income (Loss) from Continuing Operations After Income Taxes $(231) $(50) +78% Operating EBITDA(1) $386 $525 +36% Operating EBITDA Margin(1) 10.4% 13.2% +278 bps GAAP EPS from Continuing Operations
Slide 15: 4Q 2024 Seed Performance Highlights
4Q 2024 Seed Performance Highlights ($ in millions) 4Q 2024 vPY 4Q 2024 Revenue by Product Line Net Sales $1,772 +8% Organic(1) Sales Growth +16% Other oilseeds(3) Other(4) Operating EBITDA $93 (36)% 23% reported growth Operating EBITDA Margin 5.2% (362) bps 24% organic(1) growth Seed Operating EBIT
Slide 16: 4Q 2024 Regional Net Sales Highlights – Seed
4Q 2024 Regional Net Sales Highlights – Seed North Latin Global Net Sales Reported Organic(1) Reported Organic(1) America(2) 11% 11% America 5% 20% 4Q 2023 4Q 2024 4Q 2023 4Q 2024 Net Sales ($M) $576 $639 Net Sales ($M) $790 $827 $1.77B Volume Price Currency Portfolio Volume Price Currency Portfolio
Slide 17: 2024 Seed Performance Highlights
2024 Seed Performance Highlights ($ in millions) FY 2024 vPY FY 2024 Revenue by Product Line Net Sales $9,545 +1% Organic(1) Sales Growth +4% Other(4) Operating EBITDA $2,219 +5% Other oilseeds(3) Operating EBITDA Margin 23.2% +90 bps (8)% reported growth 1% organic(1) growth Seed Operating EBITDA (
Slide 18: 2024 Regional Net Sales Highlights – Seed
2024 Regional Net Sales Highlights – Seed North Latin Global Net Sales Reported Organic(1) Reported Organic(1) America(2) 5% 5% America 7% 1% FY 2023 FY 2024 FY 2023 FY 2024 Net Sales ($M) $5,768 $6,033 Net Sales ($M) $1,637 $1,523 $9.47B $9.55B Volume Price Currency Portfolio Volume Price Currency
Slide 19: 4Q 2024 Crop Protection Highlights
4Q 2024 Crop Protection Highlights ($ in millions) 4Q 2024 vPY 4Q 2024 Revenue by Product Line Net Sales $2,206 +6% Organic(1) Sales Growth +11% Other(3) Operating EBITDA $461 +73% Biologicals Operating EBITDA Margin 20.9% +801 bps 9% reported growth 19% organic(1) growth Crop Protection Operating E
Slide 20: 4Q 2024 Regional Net Sales Highlights – Crop Protection
4Q 2024 Regional Net Sales Highlights – Crop Protection North Latin Global Net Sales Reported Organic(1) Reported Organic(1) America(2) - - America 9% 21% 4Q 2023 4Q 2024 4Q 2023 4Q 2024 Net Sales ($M) $921 $924 Net Sales ($M) $732 $795 $2.21B Volume Price Currency Portfolio Volume Price Currency Po
Slide 21: 2024 Crop Protection Highlights
2024 Crop Protection Highlights ($ in millions) FY 2024 vPY 2024 Revenue by Product Line Net Sales $7,363 (5)% Organic(1) Sales Growth (2)% Other(3) Operating EBITDA $1,272 (7)% Biologicals Operating EBITDA Margin 17.3% (44) bps (3)% reported growth (2)% organic(1) growth Crop Protection Operating E
Slide 22: 2024 Regional Net Sales Highlights – Crop Protection
2024 Regional Net Sales Highlights – Crop Protection North Latin Global Net Sales Reported Organic(1) Reported Organic(1) America(2) 7% 7% America 1% 6% FY 2023 FY 2024 FY 2023 FY 2024 Net Sales ($M) $2,822 $2,627 Net Sales ($M) $2,269 $2,253 Volume Price Currency Portfolio Volume Price Currency Por
Slide 23: FY 2024 Operating EPS Variance
FY 2024 Operating EPS(1) Variance Operating EPS(1) ($) $(0.03) $0.05 $(0.09) $2.69 $(0.10) $0.13 $(0.08) $2.57 1 2 3 4 5 6 FY 2023 Volume/ Costs Change in Base Tax Currency EGL Portfolio / FY 2024 Price Rate(1) Other Volume/Price 1 Costs 2 Change in Base Income Tax Rate(1) 3 Low-single digit Seed
Slide 24: FY 2025 Modeling Guidance – Operating Earnings Per Share
FY 2025 Modeling Guidance – Operating Earnings Per Share(1) ($ in millions, except where noted) Guidance Depreciation and Post-Merge Amortization (635 – 645) Net Interest (Expense) Income (160 – 170) Base Income Tax Rate(1) 22% – 24% Exchange Losses – net, after tax (260 – 280) Net Income – Non-cont
Slide 25: Product Disclosures
Product Disclosures TM ® SM Trademarks and service marks of Corteva Agriscience and its affiliated companies. © 2025 Corteva and its affiliated companies. The transgenic soybean event in Enlist E3® soybeans is jointly developed and owned by Corteva Agriscience LLC and M.S. Technologies, L.L.C. Enlis
Slide 26: Thank you
Thank you
Slide 27: Non-GAAP Calculation of Corteva Operating EBITDA
Corteva, Inc. Non-GAAP Calculation of Corteva Operating EBITDA Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 As As As As In millions Reported Margin % Reported Margin % Reported Margin % Reported Margin % Income (loss) from continuing operations after income ta
Slide 28: Segment Information: Net sales by segment
Corteva, Inc. Segment Information Net sales by segment Three Months Ended Twelve Months December 31, Ended December 31, In millions 2024 2023 2024 2023 Seed $ 1,772 $ 1,635 $ 9,545 $ 9,472 Crop Protection 2,206 2,072 7,363 7,754 Total net sales $ 3,978 $ 3,707 $ 16,908 $ 17,226 Net Margin (GAAP) Thr
Slide 29: Segment Information: Corteva significant items (Pre-tax)
Corteva, Inc. Segment Information Corteva significant items (Pre-tax) Three Months Ended Twelve Months December 31, Ended December 31, In millions 2024 2023 2024 2023 Seed Restructuring and asset related charges - net $ 1 $ (12) $ (55) $ (86) Inventory write-offs — — 2 (7) Gain (loss) on sale of bus
Slide 30: Price, Volume, Currency Analysis – Region (Q4)
Corteva, Inc. Segment Information - Price, Volume, Currency Analysis Region Q4 2024 vs. Q4 2023 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP) 2 Price & Portfolio / $ (millions) % $ (millions) % Product Mix Volume Currency Other North America 1 $ 66 4%$ 68 5% 3% 2% (1)% —%
Slide 31: Price, Volume, Currency Analysis – Product Line (Q4)
Corteva, Inc. Segment Information - Price, Volume, Currency Analysis Seed Product Line Q4 2024 vs. Q4 2023 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP) 1 Price & Portfolio / $ (millions) % $ (millions) % Product Mix Volume Currency Other Corn $ 103 8%$ 212 16 % (8)% 24 %
Slide 32: Price, Volume, Currency Analysis – Region (Twelve Months)
Corteva, Inc. Segment Information - Price, Volume, Currency Analysis Region Twelve Months 2024 vs. Twelve Months 2023 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP) 2 Price & Portfolio / $ (millions) % $ (millions) % Product Mix Volume Currency Other North America 1 $ 70 1%
Slide 33: Price, Volume, Currency Analysis – Product Line (Twelve Months)
Corteva, Inc. Segment Information - Price, Volume, Currency Analysis Seed Product Line Twelve Months 2024 vs. Twelve Months 2023 Percent Change Due To: Net Sales Change (GAAP) Organic Change (Non-GAAP) 1 Price & Portfolio / $ (millions) % $ (millions) % Product Mix Volume Currency Other Corn 2 $ 49
Slide 34: Non-GAAP Calculation of Corteva Operating EPS
Corteva, Inc. Non-GAAP Calculation of Corteva Operating EPS Three Months Ended December 31, 2024 2023 2024 2023 $ (millions) $ (millions) EPS (diluted) EPS (diluted) Income (loss) from continuing operations attributable to Corteva common stockholders (GAAP) $ (52) $ (233) $ (0.08) $ (0.33) 1 Less: N
Slide 35: Non-GAAP Calculation of Corteva Base Income Tax Rate
Corteva, Inc. Non-GAAP Calculation of Corteva Base Income Tax Rate Three Months Ended Twelve Months December 31, Ended December 31, $ in millions 2024 2023 2024 2023 Income (loss) from continuing operations before income taxes (GAAP) $ 88 $ (323) $ 1,275 $ 1,093 Add: Significant items (benefit) char
Slide 36: Non-GAAP Calculation of Free Cash Flow
Corteva, Inc. Non-GAAP Calculation of Free Cash Flow Twelve Months Ended December 31, In millions 2024 2023 Cash provided by (used for) operating activities - continuing operations (GAAP) $ 2,296 $ 1,809 Less: Capital expenditures (597) (595) Free Cash Flow (Non-GAAP) 1 $ 1,699 $ 1,214 Corteva Opera