Corteva, Inc. · NYSE:CTVA
Corteva — Investor Day (May 2019)
123 slides from Corteva's investor day presentation, May 9, 2019
Slide 1: Investor Day May 9, 2019
Exhibit 99.1 Investor Day May 9, 2019 Agriculture Division of DowDuPont Insert Risk ClassificationExhibit 99.1 Investor Day May 9, 2019 Agriculture Division of DowDuPont Insert Risk Classification
Slide 2: 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 3: A Reminder About Non-GAAP Statements and Pro Forma Financial Information
A Reminder About Non-GAAP Statements and Pro Forma Financial Information 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, DuPont or the
Slide 4: Agenda and Presenters
Company and Industry Overview Jim Collins, Chief Executive Officer-Elect Financial Overview Greg Friedman, Chief Financial Officer-Elect Regional Overview Tim Glenn, Executive Vice President, Chief Commercial Officer Judd O’Connor, President, U.S. Commercial Business Business Platform Overview Rajan
Slide 5: Company & Industry Update
Company & Industry Update Jim Collins, Chief Executive Officer-ElectCompany & Industry Update Jim Collins, Chief Executive Officer-Elect
Slide 6: Corteva Agriscience Values and Purpose
Corteva Agriscience™ Values Enrich Lives We commit to enhancing lives and the land Stand Tall We are leaders and act boldly Build Together We grow by working together Be Curious Our Purpose We innovate relentlessly Be Upstanding To enrich the lives of We always do what’s right those who produce and
Slide 7: Global Scale and Market Presence
Corteva Agriscience™ Global Scale and Market Presence Our Company 21,000+ 140+ $2.8B Colleagues Countries $7.4B 150+ 12,000+ R&D Facilities Granted Patents $1.3B 100+ 65+ Production & Active Ingredients $2.8B Mfg. Facilities HQ: Wilmington, DE Business Centers in IA & IN 100+ 8,000+ (2) Regional Sal
Slide 8: Creating a Pure-Play, U.S.-Based, Agriculture Company
Creating a Pure-Play, U.S.-Based, Agriculture Company Crop Seeds Crop Crop Seeds Seeds Protection & Traits Protection Protection & Traits ~70% ~44% ~56% ~30% ~80% ~20% Portfolio › Leading germplasm › Germplasm diversification › Complete solution for farmers › Digital portfolio › Best-in-class germpl
Slide 9: Delivering Financial Results Against Current Market Backdrop
Delivering Financial Results Against Current Market Backdrop (1) Pro Forma Division Net Sales Pro Forma Division Operating EBITDA $14.3B $14.3B $14.3B $2.8B $14.1B $2.7B $2.6B $2.3B 2016 2017 2018 2019E 2016 2017 2018 2019E 2019 Full Year Indications Expected organic net sales growth of 1-2%, offset
Slide 10: Strong Execution Delivered Results Outside North America
Strong Execution Delivered Results Outside North America Segment Performance Regional Highlights Crop Protection Seed Net Sales North Asia Reported Reported Organic Organic (1) (1) 7% America 22% 22% 14% Pacific $2.3B $1.5B $1.4B Seed deliveries Strong growth in delayed by cold, wet insecticides and
Slide 11: On Track to Deliver 2019 EBITDA Guidance
On Track to Deliver 2019 EBITDA Guidance 1H 2019E Divisional EBITDA: - 3 to - 5 percent Key Drivers: $2,450 - $2,500MM § Weather effect of Q1 shifted significant NA seed sales into $2,576MM $224MM Q2 § Continue to expect 1-2 million increase in U.S. corn acres planted in 2019 vs 2018 § Pipeline deli
Slide 12: Progress on Five Priorities for Shareholder Value Creation
Progress on Five Priorities for Shareholder Value Creation Corteva Indications 01 02 03 04 05 Instill a strong Drive disciplined Develop innovative Attain best-in-class Deliver above- culture capital allocation solutions cost structure market growth Engaged Finalized capital Launched new Delivered y
Slide 13: Customer Centricity Is Key to Driving Demand Creation
Customer Centricity Is Key to Driving Demand Creation for Products 01 Customer-centric culture Mycogen Demo Plots Women Growers Field Day Pioneer Brand Corn Plot Tour United States Mexico Kenya Brevant Demo Plots Fall Army Worm Training EduFarm session Brazil India Indonesia Agriculture Division of
Slide 14: Optimizing Capital Allocation for Growth and Shareholder Value
Optimizing Capital Allocation for Growth and Shareholder Value 02 Drive disciplined capital allocation Establish Capital Structure Define Financial Policies Deliver ROIC Improvement JUNE 1, 2019 | Expected Spin Priorities › Maintain financial flexibility to support › Committed to growing cash flow i
Slide 15: New Products Launched Since the Merger Close
New Products Launched Since the Merger Close 03 Develop innovative solutions Seed Crop Protection Digital SEED APPLIED INSECT MGMT. COTTON SOYBEANS TECHNOLOGY SOLUTIONS Quick insights into financial and agronomic performance CORN DISEASE HERBICIDE SOLUTIONS SOLUTIONS Agriculture Division of DowDuPon
Slide 16: Getting to Best-in-Class Cost Structure and Improved Return
Getting to Best-in-Class Cost Structure and Improved Return 04 Attain best-in-class cost structure Seed Production Commercial Headcount R&D Sites CP Manufacturing Sites Offices MERGER CLOSE SEPTEMBER ~25,000 90 287 233 2 site 2017 shutdowns and $1.2 billion Cost Synergy 15+ site SEPTEMBER Run Rate o
Slide 17: Digital Transformation to Enable Margin Expansion
Digital Transformation to Enable Margin Expansion 05 Above market growth Internal External Pipeline Customer Enterprise Innovation Software 1 ›Automation, data science and ›Enterprise strategy & applications ›SaaS through Granular digital tools in R&D ›Process automation Customer experience Reduced
Slide 18: Positioned to Deliver Shareholder Value
Positioned to Deliver Shareholder Value Unique Balanced Strong route to Best-in- portfolio Strong pipeline of Digital market with class cost and global culture and innovative transformation expanded structure market team solutions access presence Agriculture Division of DowDuPont 18Positioned to Del
Slide 19: Finance Overview
Finance Overview Greg Friedman, EVP, Chief Financial Officer-ElectFinance Overview Greg Friedman, EVP, Chief Financial Officer-Elect
Slide 20: Reconciliation of Division to Standalone Financials
Reconciliation of Division to Standalone Financials EBITDA 2019E DWDP Ag segment operating ~$2.8B EBITDA Spin adjustments (millions) ~(174) Excl businesses, Non-op pension and Other Standalone costs (millions) ~(478) Functional and leveraged and Corporate Cost reductions (millions) ~50-150 Corteva o
Slide 21: Guidance for 2019
Guidance for 2019 2 Division Basis Corteva Basis 1 Market Growth : Seed 0-1% 0-1% √ Crop 2-3% 2-3% √ 1 Above Market Growth : Seed 1-2% 1-2%√ Crop 1.5-2.5% 1.5-2.5%√ Headwinds: Currency (2-3%); ~$350M (2-3%); ~$350M√ Headwinds: Timing, Brand Rationalization, Weather (1-2%) (1-2%)√ Consolidated Net Sa
Slide 22: 2019 Corteva Net Sales Guidance
2019 Corteva Net Sales Guidance Above market organic sales growth driven by product launches Above market organic sales growth driven by new ($ in billions) products; new seed genetics and new crop protection products including Arylex, Vessarya, Rinskor, Pyraxalt, Isoclast and Zorvec ~$14.6B Pricing
Slide 23: 2019 Corteva Operating EBITDA Guidance
* 2019 Corteva Operating EBITDA Guidance Margin expansion driven by synergies and product launches ($ in billions) Margin Expansion § New product launches § Pricing on high demand crop protection products § Accelerated synergy delivery +$50 million in 2H’19 § Increased productivity to improve margin
Slide 24: Corteva Standalone Net Sales and Operating EBITDA
Corteva Standalone Net Sales Operating EBITDA* ($ in billions) ($ in billions) $14.3 ~$14.3 $14.2 $14.0 $2.2-2.3 $2.1 $2.0 $1.7 2016 2017 2018 2019E 2016 2017 2018 2019E *Corteva net sales and operating EBITDA are on a pro forma basis as filed in the Form 10 prepared in accordance with Article of 11
Slide 25: Mid-term Financial Targets
1 Mid-term Financial Targets Sales Expected to Exceed Market Growth Operating EBITDA Growth Expected ~2x Sales by 1-2% 2 Corteva Total Revenue Growth : Operating EBITDA Margin Expansion: 50-150bps Seed 3-5% Corteva Operating EBITDA Growth: 6-10% Crop 3.5-6.5% Total 3-5% 1 Market Growth : 2-4% Strong
Slide 26: Capital Expenditures
Capital Expenditures Disciplined Approach to Capex Investments § Capex limited to depreciation plus cost to achieve savings ~$650M $650M § Depreciation is expected to be ~$570- ~$120M $100M 600 million in 2019 § ~40% is expected for required for repair, maintenance, and safety $550M $530M § ~60% is
Slide 27: Seed Drives Earnings and Cash Flow Seasonality
Seed Drives Earnings and Cash Flow Seasonality ~80% of seed sales occur in Q1/Q2 Representative Seasonal Debt Level Peak: ~$4B ($ in billions) ~30% ~50% ~5% ~15% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1Q 2Q 3Q 4Q § 1H sales primarily in North America and Europe seed (corn, soybean, sunflower) § Q1 sales al
Slide 28: Corteva Capital Structure
Corteva Capital Structure 1 Liquidity Sources Debt Profile Targeted at 12/31/19 ($ in billions) ~$1B Cash $2.0B ~$2B Cash Long Term Financial Debt ~$0.2 5-Year Revolver Expected to be minimal ~$3B 3-Year Revolver Short Term Financial Debt at year-end, with intra- Other ~$3B period peaks of ~$4B $7.3
Slide 29: Achieving the Intended Capital Structure for Corteva
Achieving the Intended Capital Structure for Corteva Targeting A- Expected Liquidity and short- term 1 credit profile debt profile debt supporting seasonality § A- credit profile to support § Minimal long term financial debt§ ~$2B cash balance our differentiated business § Adjusted Debt* ~$4B, prima
Slide 30: Pension
Pension § Corteva will take the U.S. pension and OPEBs of heritage DuPont. U.S. Service Costs § The U.S. pension is frozen; no further service costs to be accrued Frozen § Almost all future benefits or costs are non-operating § Non-operating pension is primarily driven by changes in asset returns, N
Slide 31: Additional Modeling Guidance
Additional Modeling Guidance Cash Flow Modeling Guidance Additional Modeling Assumptions § Operating tax rate of 19-21% ($ in millions) 2019E Interest ($150-200) § Interest expense of $150-200 million Cash Taxes (~$450) § Annual digital investment ~$100 million Pension and OPEB Payments ($200-300) §
Slide 32: Continued Flow of Merger-Related Cost Synergies
Continued Flow of Merger-Related Cost Synergies Cumulative Synergies Composition: ~1/3 2017 2018 2019E 2020E 2021E Headcount $50 million $450 million $800 million $1.0 billion ~$1.2 billion fixed cost synergies Accelerated our 1H: $150 targets to deliver 2H: $200 $50 million more ~1/3 FY: $350 in ye
Slide 33: On Track for June 2019 Spin
On Track for June 2019 Spin SEPTEMBER 17, 2018 May 7, 2019 MAY 2019 OCTOBER 2018 MAY 9, 2019 JUNE 1, 2019 Management Form 10 Equity Announcements Amendments Road Show § Pro forma Initial Form 10 Investor Day Expected Spin financial Filing statements BOD § Capital structure Announcements and dividend
Slide 34: Progress on Five Priorities for Shareholder Value Creation
Progress on Five Priorities for Shareholder Value Creation Corteva Indications 01 02 03 04 05 Instill a strong Drive disciplined Develop innovative Attain best-in-class Deliver above- culture capital allocation solutions cost structure market growth Engaged Finalized capital Launched new Delivered y
Slide 35: Focused on Shareholder Value Creation
Focused on Shareholder Value Creation Grow Expand Disciplined Sales EBITDA Investment Agriculture Division of DowDuPont 35Focused on Shareholder Value Creation Grow Expand Disciplined Sales EBITDA Investment Agriculture Division of DowDuPont 35
Slide 36: Regional Overview
Regional Overview Tim Glenn, EVP, Chief Commercial OfficerRegional Overview Tim Glenn, EVP, Chief Commercial Officer
Slide 37: Progress on Five Priorities for Shareholder Value Creation
Progress on Five Priorities for Shareholder Value Creation Commercial Indications 01 02 03 04 05 Instill a strong Drive disciplined Develop innovative Attain best-in-class Deliver above- culture capital allocation solutions cost structure market growth Established Commercial Successful product Deliv
Slide 38: Market Conditions Influence Current-Season Buying Decisions
Market Conditions Influence Current-Season Buying Decisions Europe, Middle East, North America Latin America Asia Pacific Africa • Historic flooding interrupted • Brazil Safrinha corn area up • New agricultural threat – fall • EU, Russia, and Ukraine corn supply chains and damaged and planting benef
Slide 39: Individual Farmers Must Drive Productivity to Achieve Financial Goals
Individual Farmers Must Drive Productivity to Achieve Financial Goals Trends Implications • Ongoing farm consolidation • Increase focus on quality and profits • Increasing business orientation • Open to new innovation advancements • Increasing technology acceptance • Increase ability to invest in in
Slide 40: Market Conditions Influence Current-Season Buying Decisions by Region
Market Conditions Influence Current-Season Buying Decisions North America Latin America Asia Pacific Europe, Middle East, Africa Billion USD Billion USD Billion USD Billion USD $27.0 $7.4 $27.4 $1.3 $27.4 $2.8 $23.3 $2.8 $0.4 $10.6 Seeds $11.6 Seeds $1.4 Seeds $8.0 $16.9 Seeds $1.1 $5.0 $0.9 $16.8 C
Slide 41: Comprehensive Routes-to-Market Based on Customer Segmentation
Comprehensive Routes-to-Market Based on Customer Segmentation and Purchasing Preference Customer Segment Corteva Agriscience™ Route-to-Market Geography (Buying Preference) North America Serviced by dedicated seed sales ® Pioneer and multiple professional; high touch experience § Exclusive Pioneer ag
Slide 42: Executing to Win: Key Seed Trait Launches
Executing to Win: Key Seed Trait Launches Crop Region Launch Year 2019E ® Qrome Corn NA 2019 ~$50MM ® Corn NA 2017 • Successful new product launches in PowerCore ® 2019 – Qrome corn products, Enlist ~$300MM PowerCore™ ® 1 E3™ soybeans, LibertyLink Canola Corn LA 2019 Ultra ® and PowerCore Ultra corn
Slide 43: Executing to Win: Key Crop Protection Launches
Executing to Win: Key Crop Protection Launches Key Crops Region Launch Year 2019E Herbicides • Recent Crop Protection launches are Cereals, Soy, Others NA, LA, EMEA, AP 2018 Arylex™ Active expected to deliver above-market growth: ™ >$50MM Enlist Herbicides Soy, Corn, Cotton NA, LA, EMEA 2017-2019 •
Slide 44: Latin America Regional Profile
Latin America Regional Profile – Latin American Strengthening market access; rapid technology introduction Execution Excellence $2.8B Net Sales • Successful launch of Brevant™ seeds Seed Delivering Results brand 39% • Established differentiated Corteva 13% organic growth* routes-to-market – Crop Pro
Slide 45: Europe, Middle East, Africa Regional Profile
Europe, Middle East, Africa Regional Profile – Europe, Middle East, Africa Focus on customer through innovative solutions and differentiated routes-to-market Execution Excellence $2.8B Net Sales • Multi-brand Seeds strategy launched Seed Delivering Results 51% with Brevant™ seeds in Europe 0% organi
Slide 46: Asia Pacific Regional Profile
Asia Pacific Regional Profile – Asia Pacific Lead industry growth with major launches in CP and rapid expansion in corn coverage Execution Excellence $1.3B Net Sales • Grew >2x industry growth in region Seed Delivering Results 27% throughout 2018 10% organic growth* • New routes-to-market launched i
Slide 47: North America Regional Profile
North America Regional Profile – North American Building on leading positions in Seed and Crop Protection Execution Excellence $7.4B Net Sales • Introduced new premium retail brand Crop Protection Delivering Results in Canada - Brevant™ seeds in 33% 3% organic growth* canola, corn, soybeans and wint
Slide 48: U.S. Overview
U.S. Overview Judd O’Connor, President, U.S. BusinessU.S. Overview Judd O’Connor, President, U.S. Business
Slide 49: U.S. Profile
U.S. Profile – United States Building on leading positions in Seed and Crop Protection # • Four Crop Protection product launches $6.7B Net Sales ® ® ® • Lumisena , Elevore , EverpreX , Isoclast™ Crop Protection 33% ~10,500 43 • Two new seed trait launches Production Facilities Colleagues ® • Qrome c
Slide 50: U.S. Expanding Access to Genetics, Technology and Traits
U.S. Expanding Access to Corteva Agriscience™ Genetics, Technology and Traits through Multiple Brands and Channels Licensing and Distribution ® • Flagship Pioneer seed brand through exclusive agency route-to-market – Continuing to further strengthen and differentiate brand Global Brand • Strategical
Slide 51: U.S. Regional Seed Brand Restructuring Complete
U.S. Regional Seed Brand Restructuring Complete 2018: 10 Regional Brands 2019: 5 Regional Brands Execution Exceeding Plan Priorities • Major reorganization & refocus with anticipated volume loss • Stable and set to grow in 2020 • 93% of Points of Sale fully converted to new structure within • Buildi
Slide 52: U.S. The Corteva Acre
U.S. The Corteva Acre SEED GENETICS & TRAITS • U.S. and area leadership accountable for growth across Seed, Crop Protection and Digital • Strategic alignment and commitment to key retail and distribution partners • Complementary offer is expanding market penetration – 2X Pioneer customers using Cort
Slide 53: Business Platform Overview
Business Platform Overview Rajan Gajaria, EVP, Business PlatformsBusiness Platform Overview Rajan Gajaria, EVP, Business Platforms
Slide 54: Industry Trends and Market Opportunities
Industry Trends and Market Opportunities 2018 Crop Protection and Seed Market Opportunity Population and Income • +11% growth in world population and • +31% growth in world income over last 10 years • +9% growth in world population and $105 45% • +30% growth in world income over next 10 years 55% Bi
Slide 55: Progress on Five Priorities for Shareholder Value Creation
Progress on Five Priorities for Shareholder Value Creation Platform Indications 01 02 03 04 05 Instill a strong Drive disciplined Develop innovative Attain best-in-class Deliver above- culture capital allocation solutions cost structure market growth Collaborate cross- Aligned R&D and Launched new D
Slide 56: Business Platform Strategy Overview
Business Platform Strategy Overview Shaping the Portfolio Cost-Advantaged Innovation- Customer of the Future Operations Fueled Growth Focus • Multi-channel, multi-brand • Germplasm and traits • Best owner mindset • Target best-in-class seed advantaged Routes-To- production • Rapid ramp-up of new • L
Slide 57: Power of Combined Platforms Offering Complete Solutions
Power of Combined Platforms Offering Complete Solutions Customer Nutrient Focused Seed Applied TM Enlist System Growth Technology Management Synergies Corteva Agriscience™ Advantage Innovation Across Integrated Crop Health & Complete Solution Segments Solutions Sustainability Agriculture Division of
Slide 58: New Seed and Trait Products Expected to Drive New Value
New Seed and Trait Products Expected to Drive New Value Leading germplasm library driving YOY yield improvement Seed and Trait Product Launches Accelerating in new classes of seed products In 2018, delivered $1.1B in new product sales that held $5.0 competitive position and market share • 2018 incre
Slide 59: Growth Propelled by our Seed and Trait Pipeline
Growth Propelled by our Seed and Trait Pipeline Becoming a Launch Machine Key Seed Platform launches targeted through 2023 TRAIT CROPS DISCIPLINE REGIONS TRAIT CROPS DISCIPLINE REGIONS Insect Latin Insect North Protection & Corn America Protection America Soy Herbicide Tolerance Insect Latin Corn He
Slide 60: Maximizing Value of Trait Launches: Corn
1 Maximizing Value of Trait Launches: Corn Balancing use of proprietary and licensed technology ABOVE GROUND BELOW GROUND Improved Improved Product Out-license Improved Improved Product Out-license Margin Efficacy Renewal Opportunity Margin Efficacy Renewal Opportunity ® ® ® Optimum Optimum Intrasec
Slide 61: Maximizing Value of Trait Launches: Soybean
1 Maximizing Value of Trait Launches: Soybean Transitioning to more proprietary technology NORTH AMERICA LATIN AMERICA Improved Improved Product Out-license Improved Improved Product Out-license Margin Efficacy Renewal Opportunity Margin Efficacy Renewal Opportunity Glyphosate Glyphosate Tolerance T
Slide 62: Qrome Corn Products Highlights
Highlights Expanded Launch -- 2019 Targeting sales of ~$1 billion by 2023 • Differentiation: ® • Qrome products offer growers high yielding insect control options to drive productivity via top tier genetics • Performance and Success to Date: ® • Qrome products have consistently delivered an average
Slide 63: Enlist Weed Control System Highlights
Highlights ™ Enlist Weed Control System sales targeting >$0.5B by 2023 • Differentiation: • Superior weed control system helps growers maximize yield: 1 • Enlist E3™ Soybeans enables growers to use one of the most advanced ® herbicide technology with Enlist Duo® or Enlist One herbicides ® • The Enli
Slide 64: Royalty Impact
Royalty Impact Moving toward proprietary trait packages • Royalty costs in 2018 were ~$750 million for all in- licensed traits • Expected net increase of ~$50 million in 2019 Out-licensing royalty costs due to volumes and mix of current technologies proprietary trait • Enlist E3™ soybean* in-licensi
Slide 65: Cost-Competitive Operations and Best-in-Class Grower Network
Cost-Competitive Operations and Best-in-Class Grower Network Optimized Global Footprint – Strong Focus on Site Utilization Relationships, Strong Seed Yields Best Growing Global Support / Areas and Regional Growers Responsive Supply Chains 30+ ~70 4,500+ Countries Seed Seed Targeted best-in- producti
Slide 66: New Crop Protection Products Expected to Drive New Value
New Crop Protection Products Expected to Drive New Value Crop Protection strong innovation driving above market growth New products expected to drive sales growth Diverse portfolio across disciplines and regions In 2018, delivered >$400MM in new product sales and estimating 75% growth in 2019 Crop P
Slide 67: Growth Propelled by our Crop Protection Pipeline
Growth Propelled by our Crop Protection Pipeline Key Crop Protection Platform launches targeted through 2023 Region Cereal Soybean Corn Rice Other Fruits & Pasture & Oil Seed Rape LM Sunflower Vegetables Herbicides Arylex™ active NA, LA, EMEA, AP Enlist™ NA, LA, EMEA weed control system NA, LA, EMEA
Slide 68: Crop Protection Product Highlights: Fungicide
Highlights Est. Launch 2019 Targeting sales of >$275MM in 2023 • Differentiation: • Novel fungicide for the management of key diseases in wheat (Septoria), other cereals and banana (black Sigatoka) • New naturally derived fungicide with good safety profile and high efficacy at low use rates • New to
Slide 69: Crop Protection Product Highlights: Nematicide
Highlights Est. Launch 2021 Targeting peak sales of >$200 MM in 2028 • Differentiation: • Novel sulfonamide nematicide with a unique mode of action against plant- parasitic nematodes, different from other nematicides on the market • True nematicide (no insecticidal or fungicidal activity) making it
Slide 70: Crop Protection Product Highlights: Fungicide
Highlights Est. Launch 2023 Targeting peak sales of >$600 MM in 2030 • Differentiation: • Novel mode-of-action for targeted pathogens outside of cereals • Controls a wide range of pathogens including Septoria spp, Powdery Mildews, Botrytis spp, Anthracnose, Alternaria, Scab, Monilinia and others • D
Slide 71: Shaping the Portfolio of the Future
Shaping the Portfolio of the Future Driving a best-owner mindset & disciplined portfolio management focus Portfolio Cross Organic Acquisitions Rationalization Licensing Growth* 2023E CP Sales Vision* 2018 CP Sales Patented Patented 14% 34% Off-Patent Off-Patent 76% 50% Differentiated Differentiated
Slide 72: Delivering Competitive Cost Advantages
Delivering Competitive Cost Advantages Focus on increasing return on invested capital and accelerating cost synergy delivery Manufacturing Working Capital Cost Synergies Asset Strategies Improvement Meet or exceed cost- Focus on CapEx ROI Inventory Optimization synergy targets Agriculture Division o
Slide 73: Business Platform Overview: Digital
Business Platform Overview Sid Gorham, President, Digital Business PlatformBusiness Platform Overview Sid Gorham, President, Digital Business Platform
Slide 74: Digital Business Platform: Value to Corteva Agriscience
Digital Business Platform: Value to Corteva Agriscience™ Software Sales New Business Business Enablement Models SaaS (Software-as-a- Software to make Corteva Software to make Corteva Service) for farmers, channel more efficient and products more effective branded Granular effective and unlocks new b
Slide 75: Value to Farmers
Value to Farmers Operational, financial and Online collaboration Improve profitability agronomic data between farm and with data-driven in one place trusted partners decisions DATA MANAGEMENT COLLABORATION DECISION MAKING Agriculture Division of DowDuPont 75Value to Farmers Operational, financial an
Slide 76: How We Will Win
How We Will Win… Innovative Software Products • Covering whole farm business • Powerful but simple to use • Connected to Corteva Agriscience™ & industry partners Leveraging Corteva Scale • Global cross-sell with seed and crop protection • Science-driven models with R&D Agriculture Division of DowDuP
Slide 77: Covering Whole Farm Business
Covering Whole Farm Business Premium Farm business Science-driven management agronomy recommendations Quick insights into financial and Farmland research agronomic performance and valuation Free Agriculture Division of DowDuPont 77Covering Whole Farm Business Premium Farm business Science-driven man
Slide 78: Powerful but Simple to Use
Powerful but Simple to Use • Easy from mobile, tablet & web • Role based collaboration tools • Automated data import • Decision support not decision making Agriculture Division of DowDuPont 78Powerful but Simple to Use • Easy from mobile, tablet & web • Role based collaboration tools • Automated dat
Slide 79: Connected to Corteva and Partners
Connected to Corteva and Partners Shared Components Open API Framework Partner applications Corteva applications Agriculture Division of DowDuPont 79Connected to Corteva and Partners Shared Components Open API Framework Partner applications Corteva applications Agriculture Division of DowDuPont 79
Slide 80: Digital Business Platform: Value to Corteva Agriscience
Digital Business Platform: Value to Corteva Agriscience™ Software Sales New Business Business Enablement Models SaaS (Software-as-a- Software to make Corteva Software to make Corteva Service) for farmers, channel more efficient and products more effective branded Granular effective and unlocks new b
Slide 81: IT/ERP Update
IT/ERP Update Debra King, SVP, Chief Information Officer IT/ERP Update Debra King, SVP, Chief Information Officer
Slide 82: Enterprise Digitization Strategy to Drive Value Creation
Enterprise Digitization Strategy to Drive Value- Creation for Business and Customers Internally Externally Pipeline Customer Enterprise Innovation Software 1 ›Automation, data science and ›Enterprise strategy & applications ›SaaS through Granular digital tools in R&D ›Process automation Customer exp
Slide 83: Shaping Corteva's Future IT Priorities
Shaping Corteva’s Future IT Priorities Aligned to Business Objectives Spin and Operate Integrate Digitize Grow Our People Prepare to operate as an Bring three Drive market leadership IT Workforce for independent company businesses together through enterprise digitization Corteva’s Future Establish a
Slide 84: Future ERP Platform to Drive Simplified Business Operations
Future ERP Platform to Drive Simplified Business Operations One ERP Platform 3 heritage businesses DuPont | Pioneer | DAS Simplified, standardized business operating environment 2 Heritage platforms Seed | Crop Protection Holistic customer experience Multiple ERP systems Foundation for continuous •
Slide 85: ERP To Deliver Significant Value
ERP To Deliver Significant Value Process Automation & Data-Driven Decision-Making Procurement Spending Supply Chain COGS Manufacturing Operating Cost Commercial Sales & Customer Satisfaction Driving Efficiency and Increased Customer Value Agriculture Division of DowDuPont 85ERP To Deliver Significan
Slide 86: Phased Approach Enables Business Continuity and Results
Phased Approach Enables Business Continuity and Results 2019 2020 2020 - 2021 2022+ 1Q 2020 First Module Global Deployment ERP Foundation Program Strategy, Delivered Design and Early • All modules delivered • All modules deployed Savings benefits begin Wins in a phased approach globally in late 2020
Slide 87: Enterprise Digitization to Further Drive Efficiencies and Growth
Enterprise Digitization to Further Drive Efficiencies and Growth Digital Capabilities Voice enabled Personalized messages and Robotic chat in real time Big Data alerts Process Automation Virtual & AI & Augmented Machine Reality Supply chain and Learning Video chat order tracking and virtual transpar
Slide 88: Data-Driven Applications Enable Business and Customer Value
Data-Driven Applications Enable Business and Customer Value Artificial Intelligence Cross-selling App and Blockchain • Beta launch of mobile tool focused on driving top-line Royalties Management revenue by • Leverage AI to manage royalty income Document and expenses • Unlocking insights Intelligence
Slide 89: R&D Overview
R&D Overview Neal Gutterson, SVP, Chief Technology OfficerR&D Overview Neal Gutterson, SVP, Chief Technology Officer
Slide 90: Our R&D Innovation Principles
Our R&D Innovation Principles Market driven Disciplined & accountable Global yet local Built to differentiate Focused on productivity Agriculture Division of DowDuPont 90Our R&D Innovation Principles Market driven Disciplined & accountable Global yet local Built to differentiate Focused on productiv
Slide 91: Differentiated, Market-Driven Innovation
Differentiated, Market-Driven Innovation ü Increase profitability, performance and simplicity for our customers ü Anticipate and meet consumer expectations/preferences ü Proactively develop solutions with extended durability ü Anticipate and solve evolving environmental or regulatory concerns Agricu
Slide 92: Business-Driven Innovation
Business-Driven Innovation Business Platforms Seed Crop Protection Digital Innovation Priorities Disruptive Business Opportunities Agriculture Division of DowDuPont 92Business-Driven Innovation Business Platforms Seed Crop Protection Digital Innovation Priorities Disruptive Business Opportunities Ag
Slide 93: Disciplined and Accountable: Structure
Disciplined and Accountable: Structure Functions of GIIF Global Innovation › Strategic alignment across categories Investment Forum (GIIF) › Capital and resource allocation among categories Crop Protection Seeds Portfolio Digital Portfolio Disruptive Portfolio Portfolio Composition of portfolio team
Slide 94: Disciplined and Accountable: Process
Disciplined and Accountable: Process Product Program Governance Development Management Discipline Seed & Traits Stages and Gates Advance Crop Protection Delay Digital Terminate & Reallocate Learning Model Disruptive Business Innovations Agriculture Division of DowDuPont 94Disciplined and Accountable
Slide 95: Proof Point: Innovation Pipeline Advancements in 2018
Proof Point: Innovation Pipeline Advancements in 2018 Crop Protection and Seed and Trait 1 1 1 3 5 0 2 3 4 6 1 7 2 Operate 2 2 Existing Ramp-up CP 1 Launch Pre-Launch Development Pre- Seed and Development Proof of Trait Lead Concept Identification Agriculture Division of DowDuPont 95Proof Point: Inn
Slide 96: Global Yet Local: Effectiveness and Efficiency
stations Global Yet Local: Effectiveness and Efficiency Global Scale Local Application Results › State-of-the-art research › 150+ R&D facilities in 32 › Business connectivity at hubs countries all levels › Localized farmer and › Best-in-class infrastructure consumer insights › Regional lab network ›
Slide 97: Industry-Leading R&D Capabilities
Industry-Leading R&D Capabilities Seed Focus Crop Protection Focus Genomics & Biotech Advanced Data Science Chemistry Formulation Natural Breeding Phenotyping Discovery & Process Products Systems Chemistry Digital Agriculture Division of DowDuPont 97Industry-Leading R&D Capabilities Seed Focus Crop
Slide 98: Diverse Innovation Relationships
Diverse Innovation Relationships Agriculture Division of DowDuPont 98Diverse Innovation Relationships Agriculture Division of DowDuPont 98
Slide 99: Built to Differentiate: Sources of Value for Farmers
Built to Differentiate: Sources of Value for Farmers IN THE SEED Breeding Biotech ON THE FARM Crop Digital / Protection Agronomy ON THE SEED Seed-Applied Technology Agriculture Division of DowDuPont 99Built to Differentiate: Sources of Value for Farmers IN THE SEED Breeding Biotech ON THE FARM Crop
Slide 100: Built to Differentiate: Our Germplasm Advantage
Built to Differentiate: Our Germplasm Advantage Digital Breeding Systems Cutting-edge Assessment Tools Greenhouse and field automation Population genomics Advanced phenotyping & analytics Agriculture Division of DowDuPont 100Built to Differentiate: Our Germplasm Advantage Digital Breeding Systems Cu
Slide 101: Proof Point: Sustained Pipeline of Trait Innovation
Proof Point: Sustained Pipeline of Trait Innovation Near- to Mid-Term Long-Term Corn: › New MOA Lepidopteran Protection Below III › New MOA Lepidopteran Protection Below IV › Multiple Mode Herbicide Tolerance Soy: › Plenish® High Oleic Soybeans with MMHT › Multiple Mode Herbicide Tolerance II › New
Slide 102: Built to Differentiate: Targeted Breeding
Built to Differentiate: Targeted Breeding Potential product benefits › Disease Resistance › Output Traits › Yield and Yield Stability Broadest CRISPR patent Near-term product to market estate in the agriculture Waxy corn hybrids industry › Increased yield Next product in pipeline High oleic – low li
Slide 103: Built to Differentiate: Natural and Naturally Derived Products
Built to Differentiate: Natural and Naturally Derived Products Expanding our leadership position in green solutions Innovating three 3rd- generations of generation actives from one solution natural product 2019 Expected Launch: 2023: Expanded use in New mode of action for variety of fruits and addre
Slide 104: Built to Differentiate: Cross-Platform Solutions
Built to Differentiate: Cross-Platform Solutions Paving way for extended value capture Integrated solutions for Asian Soybean Rust (ASR) Chemistry Digital ~ Estimated $2B / year opportunity in Brazil alone Transgenic Native Trait Trait Agriculture Division of DowDuPont 104Built to Differentiate: Cro
Slide 105: Corteva Agriscience is a Digital Company
Corteva Agriscience™ is a Digital Company Internally Externally Customer R&D Enterprise Software 1 ›Automation, data science and ›Enterprise strategy & applications ›SaaS through Granular digital tools in R&D ›Process automation Customer experience Costs ›Data-driven decision-making Farmer profitabi
Slide 106: Built to Differentiate: Digital R&D
Built to Differentiate: Digital R&D Enhanced Research Outcomes Smarter, Simpler Farmer Solutions Sample Research Tools › Granular Tools › Crop Health Index › Molecular characterization › Crop Modeling › High-resolution phenotyping › Mobile Ear Photometry › Predictive analytics and breeding › Remotin
Slide 107: Focused on Productivity: Internal Efficiencies and Quality Improvements
Focused on Productivity: Internal Efficiencies and Quality Improvements High throughput sequencing Genomics data analysis Year No of days Cost Year Data points Per unit cost 2016 180 $142K 2007 28.8MM $ .35 2017 21 $ 55K 2017 700MM $ .05 2018 9 $ 35K High throughput screening Field analytics Year Pl
Slide 108: R&D Innovation Principles
R&D Innovation Principles Market driven Disciplined & accountable Global yet local Built to differentiate Focused on productivity Agriculture Division of DowDuPont 108R&D Innovation Principles Market driven Disciplined & accountable Global yet local Built to differentiate Focused on productivity Agr
Slide 109: Q&A
Q&A Agriculture Division of DowDuPont 17 Insert Risk ClassificationQ&A Agriculture Division of DowDuPont 17 Insert Risk Classification
Slide 110: Corteva is Positioned to Deliver Shareholder Value
Corteva is Positioned to Deliver Shareholder Value Market and Innovative pipeline channel presence Margin expansion Balanced portfolio Above market Best team growth Agriculture Division of DowDuPont 110Corteva is Positioned to Deliver Shareholder Value Market and Innovative pipeline channel presence
Slide 111: James C. Collins, Jr., Chief Executive Officer
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 112: Greg Friedman, Chief Financial Officer
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 113: Rajan Gajaria, EVP Business Platforms
Rajan Gajaria is Executive Vice President, Business Platforms, for Corteva Agriscience™, Agriculture Division of DowDuPont. Mr. Gajaria is responsible for shaping the global business strategy, defining capital and R&D investment priorities, as well as overseeing the supply chain for Corteva Agriscie
Slide 114: Tim Glenn, Chief Commercial Officer
Tim Glenn is Executive Vice President, Chief Commercial Officer of Corteva Agriscience™, Agriculture Division of DowDuPont. Mr. Glenn leads the global commercial organization, which has six commercial regions – Asia Pacific, Latin America, Africa & Middle East, Europe, U.S. and Canada – and the Glob
Slide 115: Neal Gutterson, Chief Technology Officer
Neal Gutterson joined DuPont Pioneer in 2014 as the Vice President, Ag Biotech R&D; assumed current global role in 2016. He is responsible for leading all of R&D to create innovative agricultural products, services and integrated solutions for farmers and consumers. Previously president, CEO and boa
Slide 116: Debra King, Chief Information Officer
Debra King is the leader of Information Technology for Corteva Agriscience™, the Agriculture Division of DowDuPont™. In this role, she is leading efforts to enable the spin of Corteva from DowDuPont in June 2019. She is also leading a technology strategy that includes Corteva’s enterprise digitizati
Slide 117: Judd O'Connor, President, U.S. Commercial Business
Judd O’Connor is President of the U.S. Commercial Business for Corteva Agriscience™. In this role, Judd provides leadership for five Commercial Units responsible for both the seed and crop protection business in the U.S. The Commercial Units are structured to meet business objectives and deliver the
Slide 118: Sid Gorham, President, Digital Business Platform
Sid Gorham is President, Digital Business Platform, for Corteva Agriscience™. In this role, Sid leads the Digital Business strategy for Corteva Agriscience and serves as CEO of Granular. Granular is a wholly-owned subsidiary of Corteva Agriscience and is responsible for all software and analytics pr
Slide 119: Megan Britt, Investor Relations Director
Megan Britt will be the Investor Relations Director for Corteva Agriscience™. Prior to this appointment, Ms. Britt led value capture initiatives for the Agriculture Division of DowDuPont and, since the close of the DowDuPont merger, has worked with senior leadership to shape cost synergy identificat
Slide 120: Important Notices
Important Notices ® Agrisure® and Agrisure Viptera®are registered trademarks of, and used under license from, a Syngenta Group Company. Agrisure® technology incorporated into DO NOT APPLY DICAMBA HERBICIDE IN-CROP TO SOYBEANS WITH Roundup Ready 2 Xtend technology unless you use a dicamba herbicide t
Slide 121: Reconciliation of Non-GAAP Financial Measures
Corteva Agriscience ( Corteva or the Company ) Reconciliation of non-GAAP financial measures Some Corteva communications or presentations to investors contain certain financial measures that are not defined under accounting principles generally accepted in the United States of America ( GAAP ). Non-
Slide 122: Selected Segment Information and Pro Forma Operating EBITDA
Corteva Corteva Selected Segment Information Selected Non-GAAP Calculation of Corteva Pro Forma Operating EBITDA In millions YTD 2018 YTD 2017 YTD 2016 Pro forma net sales by segment 1 Pro forma (loss) income from continuing operations, net of tax (GAAP) $ (4,962) $ 2, 569 $ 528 In millions YTD 2018
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